Investors to See 40% Increase in Monthly Distribution for Ninepoint Energy Income Fund

TORONTO, Aug. 25, 2022 (GLOBE NEWSWIRE) -- Ninepoint Partners LP ("Ninepoint"), one of Canada's leading alternative investment managers, announced today a significant increase in the monthly distribution for the Ninepoint Energy Income fund, increasing the annual target by 40%, from 5% to 7% effective August 2022.

With global oil demand having recovered to pre-pandemic levels and structural supply growth challenges enduring for the foreseeable future, there are many supportive reasons to suggest that we are in a multi-year structural bull market for oil. Resulting from a change in business strategy from growth-seeking to return-seeking, energy companies are awash in free cashflow. If companies reach their ultimate leverage targets in the coming quarters, they may continue to increase dividends, thereby benefitting the holdings of the Ninepoint Energy Income Fund.

"We have entered a golden era of free cashflow for the energy sector. A bullish macro backdrop combined with companies pledging to return the majority of free cashflow back to investors makes this a sector ideally suited to generate meaningful income," remarks Eric Nuttall, Partner and Senior Portfolio Manager, Ninepoint Partners. "This, combined with our covered call writing strategy which we meaningfully increase annualized income beyond just dividends makes us believe that we will be able to further increase our annualized payout to unit holders in the coming quarters."

The thesis behind the Ninepoint Energy Income Fund is that oil prices will reach levels that discourage discretionary consumption over an extended period of time. The effect will be to restore balance to the market and give super-producers the confidence to start investing in oil exploration once more.

In the meantime, we believe Canadian dividend-paying oil producers are well positioned to continue returning meaningful capital to shareholders, as those producers enjoy low financial leverage and record free cashflow. This outlook on the energy sector supports continued upward pressure on the price of oil, and further supports rewarding investors in the Ninepoint Energy Income Fund with this increased monthly distribution.

About Ninepoint Partners

Based in Toronto, Ninepoint Partners is one of Canada's leading alternative investment management firms overseeing approximately $8.4 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies including North American Equity, Global Equity, Real Assets & Alternative Income.

For more information on Ninepoint, please visit www.ninepoint.com or inquiries regarding the Offering, please contact us at (416) 943-6707 or (866) 299-9906 or [email protected].

Media Inquiries:
Morgan Murphy
Smithcom Ltd.
416.629.2143
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Sales Inquiries:
Neil Ross
Ninepoint Partners
416.945.6227
[email protected]

The monthly distribution amount may be adjusted by the Manager without notice throughout the year as market conditions change. Monthly distributions will be comprised of net income, net realized capital gains and/or return of capital. Any net income and/or net realized capital gains earned by the Fund in excess of the monthly distribution will be distributed to unitholders annually in December.

The Ninepoint Energy Income Fund is generally exposed to the following risks. See the simplified prospectus of the Fund for a description of these risks: Absence of an active market for ETF Series risk; Borrowing Risk; Collateral Risk; Commodity Risk; Concentration Risk; Currency Risk; Cybersecurity Risk; Derivatives Risk; Energy Risk; Foreign Investment Risk; Halted trading of ETF Series risk; Inflation Risk; Interest Rate Risk; Leverage Risk; Liquidity Risk; Market Risk; Performance fee risk; Regulatory Risk; Securities lending, repurchase and reverse repurchase transactions risk; Series Risk; Short Selling Risk; Substantial unitholder risk; Tax Risk; Trading price of ETF Series risk.

Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the "Funds"). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing.

Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.