Yorkville Energy Infrastructure Strategy

The investment objective of the Yorkville Energy Infrastructure Strategy is to maximize total returns by investing primarily in mispriced energy and energy infrastructure companies.

Yorkville’s Energy Infrastructure Opportunities Strategy takes a long-term fundamental approach to investing. The strategy invests primarily in companies that are structured as corporations with (i) strong or improving fundamentals, (ii) clearly identifiable catalysts to unlock shareholder value, and (iii) significant total return potential.

Strategy
Brochure

Performance
 
Name QTD YTD 1 Year Since
Inception+
Yorkville Energy Infrastructure Strategy (Gross) (1) 6.5%-4.3%-4.3%3.1%
Yorkville Energy Infrastructure Strategy (Net) (2)6.1%-5.8%-5.8%0.5%
Alerian MLP (3)-1.0%-6.5%-6.5%3.3%
S&P 500 (4)6.6%21.8%21.8%18.3%

+ Since Inception: October 1, 2015

Past Performance is not indicative of future returns.

Performance Commentary*

The Yorkville Energy Infrastructure Strategy gained 6.5% for the fourth quarter of 2017. EIS significantly outperformed the Alerian MLP Index (AMZX), which declined by 0.9%. For the full-year 2017, EIS finished down 4.3%, meaningfully better than the 6.5% decline for the AMZX.

Sector Breakdown*
 

* as of 12/31/2017

Strategy Description
Investment StyleTotal Return
Investment PhilosophyStrategic Investment
AnalysisFundamental
Time HorizonLong-term
Holding Period2-5 Years
Alpha DriverFundamentals
Typical InvestmentsMLP General Partners, Energy Infrastructure and Energy Companies

Stability Score(5)

4th Quarter 2017

10.0

EBITDA Growth(6)

4th Quarter 2017

15.7%

Fundamental Attribution*

100% of the holdings currently paying a dividend in the Yorkville Energy Infrastructure Strategy (EIS) either increased or maintained their dividends in the fourth quarter of 2017 versus the prior year (4Q16). Median forward year-over-year EBITDA growth is expected to be 15.7%.

Contribution by Sector*

Marine Transportation and Gathering and Processing were the two best sectors for the portfolio in the fourth quarter of 2017, contributing gains of 3.3% and 1.8%, respectively. Crude Oil Pipelines were the only negative sector in EIS for 4Q17, losing 0.3% for the Strategy.

 
Strategy Fundamentals*
Yield 3.2%
Forward EBITDA Growth (Median) 15.7%
Market Capitalization (Average) $15,226
Coverage Ratio 1.3x
Leverage (Median) 4.8x
Reports

Strategy Brochure

Attribution Analysis

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The Yorkville Energy Infrastructure Strategy Composite contains fully discretionary equity accounts. The accounts are invested in the Yorkville Energy Infrastructure Strategy.

1 Gross-of-fee returns do not reflect the deduction of management fees and certain transaction costs which will reduce performance.

2 Net-of-fee returns are calculated be deducting a management fee of 1.50% from the monthly gross composite return and a performance fee according to the following schedule: 10% performance fee above a 10% hurdle with a high water mark.

3 Alerian MLP Index is the leading gauge of energy Master Limited Partnerships (MLPs). The float-adjusted, capitalization-weighted index, whose constituents represent approximately 85% of total float-adjusted market capitalization, is disseminated real-time on a price-return basis (AMZ) and on a total-return basis (AMZX).

4 The S&P 500® Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. Standard Deviation measures the risk or volatility of an investment’s return over a particular time period; the greater the number, the greater the risk.

5 Stability: Calculated as the percentage of holdings which either maintained or increased their distribution versus the same period in the prior year. Based on holdings as of 12/31/2017. Excludes positions which were added to the portfolio following a distribution cut in any of its previous four quarters. Excludes positions with less than 1-year history. The percentage is represented on a scale from 0.0 to 10.0 whereby 0.0 = 0.0% and 10.0 = 100%.

6 EBITDA Growth: Median forecasted year-over-year EBITDA growth for holdings as of 12/31/2017. Excludes positions for which no Bloomberg estimate is available. EBITDA is defined as Earnings Before Interest, Taxes, Depreciation and Amortization.

This information has been provided by Yorkville Capital Management, LLC. All materials presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment-making decision. The views and opinions expressed are those of the portfolio management team at the time of publication and are subject to change. There is no guarantee that these views will come to pass. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. Past performance is not indicative of future returns. For a GIPS® compliant presentation contact Yorkville Capital Management, LLC at (212) 755-1970 or info@yorkvillecapital.com.