Edgar Filing: FIRST TRUST ENERGY INCOME & GROWTH FUND

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES

Investment Company Act file number 811-21549
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First Trust Energy Income and Growth Fund
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(Exact name of registrant as specified in charter)

187 Danbury Road
Wilton, Connecticut 06897
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(Address of principal executive offices) (Zip code)

W. Scott Jardine, Esq.
First Trust Portfolios L.P.
120 East Liberty Drive, Suite 400
Wheaton, IL 60187
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(Name and address of agent for service)

registrant's telephone number, including area code: 630-765-8000

Date of fiscal year end: November 30
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Date of reporting period: May 31, 2013
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Report to Shareholders is attached herewith.

FIRST TRUST

SEMI-ANNUAL REPORT
FOR THE SIX MONTHS ENDED
MAY 31, 2013

FIRST TRUST
ENERGY
INCOME AND GROWTH
FUND

EIP
ENERGY INCOME PARTNERS, LLC

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TABLE OF CONTENTS
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FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
SEMI-ANNUAL REPORT
MAY 31, 2013

Shareholder Letter........................................................... 1
At A Glance.................................................................. 2
Portfolio Commentary......................................................... 3
Portfolio of Investments..................................................... 5
Statement of Assets and Liabilities.......................................... 9
Statement of Operations...................................................... 10
Statements of Changes in Net Assets.......................................... 11
Statement of Cash Flows...................................................... 12
Financial Highlights......................................................... 13
Notes to Financial Statements................................................ 14
Additional Information....................................................... 20

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements within the meaning of
the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended. Forward-looking statements include statements regarding the goals,
beliefs, plans or current expectations of First Trust Advisors L.P. ("First
Trust" or the "Advisor") and/or Energy Income Partners, LLC ("EIP" or the
"Sub-Advisor") and their respective representatives, taking into account the
information currently available to them. Forward-looking statements include all
statements that do not relate solely to current or historical fact. For example,
forward-looking statements include the use of words such as "anticipate,"
"estimate," "intend," "expect," "believe," "plan," "may," "should," "would" or
other words that convey uncertainty of future events or outcomes.

Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
First Trust Energy Income and Growth Fund (the "Fund") to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. When evaluating the information
included in this report, you are cautioned not to place undue reliance on these
forward-looking statements, which reflect the judgment of the Advisor and/or
Sub-Advisor and their respective representatives only as of the date hereof. We
undertake no obligation to publicly revise or update these forward-looking
statements to reflect events and circumstances that arise after the date hereof.

PERFORMANCE AND RISK DISCLOSURE

There is no assurance that the Fund will achieve its investment objective. The
Fund is subject to market risk, which is the possibility that the market values
of securities owned by the Fund will decline and that the value of the Fund
shares may therefore be less than what you paid for them. Accordingly, you can
lose money by investing in the Fund. See "Risk Considerations" in the Additional
Information section of this report for a discussion of certain other risks of
investing in the Fund.

Performance data quoted represents past performance, which is no guarantee of
future results, and current performance may be lower or higher than the figures
shown. For the most recent month-end performance figures, please visit
http://www.ftportfolios.com or speak with your financial advisor. Investment
returns, net asset value and common share price will fluctuate and Fund shares,
when sold, may be worth more or less than their original cost.

HOW TO READ THIS REPORT

This report contains information that may help you evaluate your investment. It
includes details about the Fund and presents data and analysis that provide
insight into the Fund's performance and investment approach.

By reading the portfolio commentary by the portfolio management team of the
Fund, you may obtain an understanding of how the market environment affected the
Fund's performance. The statistical information that follows may help you
understand the Fund's performance compared to that of relevant market
benchmarks.

It is important to keep in mind that the opinions expressed by personnel of EIP
are just that: informed opinions. They should not be considered to be promises
or advice. The opinions, like the statistics, cover the period through the date
on the cover of this report. The risks of investing in the Fund are spelled out
in the prospectus, the statement of additional information, this report and
other Fund regulatory filings.

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SHAREHOLDER LETTER
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FIRST TRUST ENERGY INCOME AND GROWTH FUND (FEN)
SEMI-ANNUAL LETTER FROM THE CHAIRMAN AND CEO
MAY 31, 2013

Dear Shareholders:

I am pleased to present you with the semi-annual report for your investment in
First Trust Energy Income and Growth Fund (the "Fund").

The report you hold contains detailed information about your investment, a
portfolio commentary from the Fund's management team that provides a recap of
the period, a performance analysis and a market and Fund outlook. Additionally,
you will find the Fund's financial statements for the period this report covers.
I encourage you to read this document and discuss it with your financial
advisor. A successful investor is also typically a knowledgeable one, as we have
found to be the case at First Trust Advisors L.P. ("First Trust").

The six months covered by this report have been more positive for the U.S.
markets. In fact, the S&P 500 Index, as measured on a total return basis, rose
16.43% during the period, and many economists and investors have felt positive
about the current market environment. Of course, past performance can never be
an indicator of future performance. As I have written many times, First Trust
believes that staying invested in quality products through up and down markets
and having a long-term horizon can help investors reach their financial goals.

As you know, First Trust offers a variety of products that we believe could fit
many financial plans to help investors seeking long-term investment success. We
encourage you to talk to your advisor about the other investments First Trust
offers that might also fit your financial goals and to discuss those goals with
your advisor regularly so that he or she can help keep you on track.

First Trust will continue to make available up-to-date information about your
investments so you and your financial advisor are current on any First Trust
investments you own. We value our relationship with you, and thank you for the
opportunity to assist you in achieving your financial goals. I look forward to
the remainder of 2013 and to the next edition of your Fund's report.

Sincerely,

/s/ James A. Bowen

James A. Bowen
Chairman of the Board of Trustees and
Chief Executive Officer of First Trust Advisors L.P.

Page 1

FIRST TRUST ENERGY INCOME AND GROWTH FUND
"AT A GLANCE"
AS OF MAY 31, 2013 (UNAUDITED)

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FUND STATISTICS
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Symbol on NYSE MKT FEN
Common Share Price $33.30
Common Share Net Asset Value ("NAV") $32.27
Premium (Discount) to NAV 3.19%
Net Assets Applicable to Common Shares $624,163,265
Current Quarterly Distribution per Common Share (1) $0.5150
Current Annualized Distribution per Common Share $2.0600
Current Distribution Rate on Closing Common Share Price (2) 6.19%
Current Distribution Rate on NAV (2) 6.38%

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COMMON SHARE PRICE & NAV (WEEKLY CLOSING PRICE)
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Common Share Price NAV
5/12 $29.25 $27.27
28.48 26.70
29.01 27.06
29.00 26.91
29.43 27.09
6/12 30.52 28.00
31.84 28.46
32.69 28.92
32.18 28.93
7/12 29.71 28.97
29.61 29.09
29.81 29.13
30.03 29.58
29.77 29.17
8/12 29.93 29.31
29.76 29.42
30.22 29.96
30.15 29.84
9/12 30.03 29.81
30.50 30.35
30.39 29.96
30.74 29.98
10/12 30.57 29.26
30.57 29.25
29.85 28.45
28.87 27.91
30.78 28.82
11/12 30.69 29.14
30.23 28.60
30.50 28.21
31.60 28.91
12/12 30.52 28.32
31.98 30.08
32.66 30.64
33.06 31.12
1/13 33.20 30.83
33.90 31.50
34.00 31.36
34.40 31.64
2/13 34.70 31.51
34.80 31.81
34.68 32.31
33.79 32.07
34.90 32.84
3/13 35.75 33.43
35.13 32.71
36.30 33.31
36.00 33.33
4/13 35.58 32.92
34.15 32.93
34.20 33.47
34.51 33.36
34.50 33.49
5/13 33.30 32.26

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PERFORMANCE
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Average Annual Total Return
-------------------------------
Inception
6 Months Ended 1 Year Ended 5 Years Ended (6/24/2004)
5/31/2013 5/31/2013 5/31/2013 to 5/31/2013

FUND PERFORMANCE (3)
NAV 14.20% 26.20% 13.18% 13.49%
Market Value 11.93% 21.46% 15.36% 13.31%

INDEX PERFORMANCE
S&P 500 Index 16.43% 27.28% 5.42% 6.27%
Barclays Capital U.S. Credit Index
of Corporate Bonds -1.71% 4.25% 7.47% 6.07%
Alerian MLP Total Return Index 14.68% 28.61% 16.26% 16.74%
Wells Fargo Midstream MLP Total
Return Index 17.11% 31.14% 17.76% 17.44%
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% OF TOTAL
INDUSTRY CLASSIFICATION INVESTMENTS
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Midstream Oil 48.3%
Midstream Gas 27.4
Utility 11.3
Coal 5.8
Propane 3.8
Marine 3.1
Other 0.3
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Total 100.0%
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% OF TOTAL
TOP 10 HOLDINGS INVESTMENTS
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Magellan Midstream Partners, L.P. 6.6%
Enterprise Products Partners, L.P. 6.2
Plains All American Pipeline, L.P. 5.7
Kinder Morgan Management, LLC 5.3
El Paso Pipeline Partners, L.P. 3.7
Enbridge Energy Partners, L.P. 3.5
Sunoco Logistics Partners, L.P. 3.4
Alliance Resource Partners, L.P. 3.4
ONEOK Partners, L.P. 3.1
Teekay LNG Partners, L.P. 3.1
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Total 44.0%
======

(1) Most recent distribution paid or declared through 5/31/2013. Subject to
change in the future. The distribution was increased subsequent to
5/31/2013. See Note 9 - Subsequent Events in the Notes to Financial
Statements.

(2) Distribution rates are calculated by annualizing the most recent
distribution paid or declared through the report date and then dividing by
Common Share price or NAV, as applicable, as of 5/31/2013. Subject to
change in the future.

(3) Total return is based on the combination of reinvested dividend, capital
gain and return of capital distributions, if any, at prices obtained by
the Dividend Reinvestment Plan and changes in NAV per share for NAV
returns and changes in Common Share price for market value returns. Total
returns do not reflect sales load and are not annualized for periods less
than one year. Past performance is not indicative of future results.

Page 2

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PORTFOLIO COMMENTARY
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FIRST TRUST ENERGY INCOME AND GROWTH FUND
SEMI-ANNUAL REPORT
MAY 31, 2013

SUB-ADVISOR

ENERGY INCOME PARTNERS, LLC

Energy Income Partners, LLC ("EIP"), located in Westport, CT, was founded in
2003 to provide professional asset management services in the area of
energy-related master limited partnerships ("MLPs") and other high-payout
securities such as pipeline companies, power utilities and Canadian income
trusts and their successor companies. EIP mainly focuses on investments in
energy-related infrastructure assets such as pipelines, power transmission,
petroleum storage and terminals that receive fee-based or regulated income from
their corporate customers. EIP manages or supervises approximately $3.9 billion
of assets as of May 31, 2013. Private funds advised by EIP include a partnership
for U.S. high net worth individuals and a master-and-feeder fund for
institutions. EIP also manages separately managed accounts and provides its
model portfolio to unified managed accounts. EIP is a registered investment
advisor and serves as a sub-advisor to two closed-end management investment
companies in addition to the First Trust Energy Income and Growth Fund ("FEN" or
the "Fund") and an actively managed exchange-traded fund (ETF).

PORTFOLIO MANAGEMENT TEAM

JAMES J. MURCHIE EVA PAO
PORTFOLIO MANAGER CO-PORTFOLIO MANAGER
FOUNDER AND CEO OF ENERGY INCOME PRINCIPAL OF ENERGY INCOME
PARTNERS, LLC PARTNERS, LLC

COMMENTARY

FIRST TRUST ENERGY INCOME AND GROWTH FUND

The investment objective of the Fund is to seek a high level of after-tax total
return with an emphasis on current distributions paid to shareholders. The Fund
pursues its objective by investing in MLPs and other high-payout securities
which the Fund's sub-advisor believes offer opportunities for income and growth.
There can be no assurance that the Fund's investment objective will be achieved.
The Fund may not be appropriate for all investors.

MARKET RECAP

As measured by the Alerian MLP Total Return Index ("AMZX") and the Wells Fargo
Midstream MLP Total Return Index ("WCHWMIDT"), the total return for
energy-related MLPs over the semi-annual period ended May 31, 2013, was 14.68%
and 17.11%, respectively. For AMZX, this return reflects a positive 6.3% on an
annualized basis from income distribution, and the remaining returns are due to
share appreciation. For WCHWMIDT, this return reflects a positive 6.1% on an
annualized basis from income distribution, while the remaining return is due to
share appreciation. These figures are according to data collected from several
sources, including the AMZX, the WCHWMIDT and Bloomberg. While in the short term
share appreciation can be volatile, we believe that over the longer term, share
appreciation will approximate growth in per share quarterly cash distributions
paid by MLPs. Over the last 10 years, growth in per share MLP distributions has
averaged about 6.8%. Over the last 12 months, the cash distributions of MLPs
increased by about 7.8% (Source: Alerian Capital Management).

PERFORMANCE ANALYSIS
On a net asset value ("NAV") basis, the Fund provided a total return1 of 14.20%,
including the reinvestment of dividends, for the semi-annual period ended May
31, 2013. This compares, according to collected data, to a total return of
16.43% for the S&P 500 Index, -1.71% for the Barclays Capital U.S. Credit Index
of Corporate Bonds, 14.68% for AMZX and 17.11% for WCHWMIDT. Unlike the Fund,
the indices do not incur fees and expenses. On a market value basis, the Fund
had a total return, including the reinvestment of dividends, for the semi-annual
period ended May 31, 2013, of 11.93%. The Fund's premium over NAV narrowed over
the course of the semi-annual period. On May 31, 2013, the Fund was priced at
$33.30, while the NAV was $32.27, a premium of 3.19%. On November 30, 2012, the
Fund was priced at $30.69, while the NAV was $29.12, a premium of 5.39%.

The Fund increased its dividend twice during the semi-annual period. The Fund
raised the distribution to $0.51 in January 2013 and to $0.515 in April 2013.

The underperformance of the Fund's NAV relative to the 15.90% average of the two
MLP benchmarks is driven largely by the effect of an accrual for income taxes
taken against Fund NAV which was not fully offset by the positive effect of the
Fund's use of financial leverage. Since the Fund has experienced low turnover,
actual cash income taxes paid have been substantially lower than

(1) Total return is based on the combination of reinvested dividend, capital
gain and return of capital distributions, if any, at prices obtained by
the Dividend Reinvestment Plan and changes in NAV per share for NAV
returns and changes in Common Share price for market value returns. Total
returns do not reflect sales load and are not annualized for periods less
than one year. Past performance is not indicative of future results.

Page 3

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PORTFOLIO COMMENTARY (CONTINUED)
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FIRST TRUST ENERGY INCOME AND GROWTH FUND
SEMI-ANNUAL REPORT
MAY 31, 2013

this accrual. On April 30, 2013, the Fund completed a secondary offering of
2,800,000 shares at $34.55 per share. The net proceeds from this offering of
approximately $92.7 million were used to invest in MLPs and other energy
infrastructure companies that the Sub-Advisor believed offered attractive total
return prospects. The Fund's closing NAV on April 30, 2013 was $33.24 per share.

An important factor affecting the return of the Fund is its use of financial
leverage through the use of a line of credit. The Fund revised its committed
facility agreement with BNP Paribas Prime Brokerage Inc. ("BNP") to a maximum
commitment amount of $230,000,000. The Fund uses leverage because its managers
believe that, over time, leverage can enhance total return for common
shareholders. However, the use of leverage can also increase the volatility of
the NAV and therefore the share price. For example, if the prices of securities
held by the Fund decline, the effect of changes in common share NAV and common
shareholder total return is magnified by the use of leverage, and conversely,
leverage may enhance common share returns during periods when the prices of
securities held by the Fund generally are rising. Unlike the Fund, the AMZX and
WCHWMIDT are not leveraged. Leverage had a positive impact on the performance of
the Fund over this reporting period.

MARKET AND FUND OUTLOOK
The MLP asset class has experienced 7 IPOs so far in 2013, as of May 31, 2013.
There was a healthy level of secondary financing activity for MLPs during the
reporting period, as they continued to fund their ongoing investments in new
pipelines, processing and storage facilities. There have been 33 secondary
equity offerings in 2013 through May 31, 2013, which raised $9.6 billion in
proceeds. In 2012, there were a total of 67 secondary equity offerings for MLPs
that raised $25.0 billion. MLPs also found access to the public debt markets,
raising $7.1 billion in 7 offerings in 2013 through May 31, 2013. This compares
to $18.2 billion in 2012 (Source: Barclays Capital). The combination of equity
and debt raised in 2012 of approximately $43 billion represents approximately
11% of the roughly $389 billion MLP market cap.

The Fund continues to aim to be invested in MLPs and other energy infrastructure
companies with mostly non-cyclical cash flows, investment-grade ratings,
conservative balance sheets, modest and/or flexible organic growth commitments
and liquidity on their revolving lines of credit. Cyclical cash flows will
always be unpredictable, making them a bad fit with a steady dividend obligation
that is meant to be most or all of the company's free cash flow.

MLPs continue to play an integral role in the restructuring of more diversified
energy conglomerates. This restructuring includes the creation by these more
diversified conglomerates of MLP subsidiaries that contain assets such as
pipelines and storage terminals. It also includes the divestiture by some of the
parent companies of most or all of their cyclical businesses, leaving the parent
company looking very similar to an old-fashioned pipeline utility with a large
holding in a subsidiary MLP. Diversified energy conglomerates are doing this so
that their regulated infrastructure assets with predictable cash flows may be
better valued by the market, resulting in a better financing tool to raise
capital for the new energy infrastructure projects related to the rapid growth
of North American oil and gas production and the need to upgrade the power grid.

In the opinion of the Sub-Advisor, the total return proposition of owning
energy-related infrastructure MLPs has been and continues to be their yield plus
their growth in dividends. The yield of the MLPs, weighted by market
capitalization, on May 31, 2013, was 5.87% based on AMZX. The growth in the
quarterly cash distributions that make up this yield has averaged between 6% and
7% annually over the last ten years.2 For true infrastructure MLPs, we expect
dividend growth rates to be similar to their long term history and while we
expect this growth will continue to be driven by three factors: 1) modest
increases in volume from growth from both demand for energy and increases in
North American oil and gas production; 2) inflation and cost escalators in
pipeline tariffs and contracts; and 3) accretion from profitable capital
projects and acquisitions, there can be no guarantee that it will actually
occur.

(2) Past performance is not indicative of future results.

Page 4

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS
MAY 31, 2013 (UNAUDITED)

SHARES/
UNITS DESCRIPTION VALUE
------------ -------------------------------------------------- -------------
MASTER LIMITED PARTNERSHIPS - 110.0%

GAS UTILITIES - 5.8%
343,181 AmeriGas Partners, L.P. (a) ...................... $ 16,129,507
424,784 Suburban Propane Partners, L.P. (a) .............. 20,066,796
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36,196,303
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INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.4%
85,700 Brookfield Renewable Energy Partners, L.P.
(CAD) .......................................... 2,454,240
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OIL, GAS & CONSUMABLE FUELS - 103.8%
223,650 Access Midstream Partners, L.P. (a) .............. 9,621,423
248,401 Alliance GP Holdings, L.P. (a) ................... 15,830,596
449,972 Alliance Resource Partners, L.P. (a) ............. 32,523,976
182,662 Buckeye Partners, L.P. (a) ....................... 12,081,265
877,850 El Paso Pipeline Partners, L.P. (a) .............. 36,070,857
1,155,221 Enbridge Energy Partners, L.P. (a) ............... 34,090,572
459,879 Energy Transfer Equity, L.P. (a) ................. 26,286,684
427,544 Energy Transfer Partners, L.P. (a) ............... 20,782,914
1,011,653 Enterprise Products Partners, L.P. (a) ........... 60,082,072
173,500 EQT Midstream Partners, L.P. (a) ................. 8,477,210
604,448 Holly Energy Partners, L.P. (a) .................. 21,735,950
14,674 Inergy, L.P. (a) ................................. 341,904
347,571 Kinder Morgan Energy Partners, L.P. (a) .......... 28,987,421
1,225,654 Magellan Midstream Partners, L.P. (a) ............ 63,721,751
279,000 MPLX, L.P. (a) ................................... 10,359,270
118,200 Natural Resource Partners, L.P. (a) .............. 2,629,950
68,560 NGL Energy Partners, L.P. (a) .................... 1,908,710
630,646 NuStar Energy, L.P. (a) .......................... 29,381,797
491,405 NuStar GP Holdings, LLC (a) ...................... 13,523,466
123,300 Oiltanking Partners, L.P. (a) .................... 6,103,350
585,740 ONEOK Partners, L.P. (a) ......................... 30,317,902
988,382 Plains All American Pipeline, L.P. (a) ........... 55,527,301
219,465 PVR Partners, L.P. (a) ........................... 5,653,418
567,084 Spectra Energy Partners, L.P. (a) ................ 20,193,861
551,211 Sunoco Logistics Partners, L.P. (a) .............. 33,370,314
347,927 TC Pipelines, L.P. (a) ........................... 15,159,179
701,909 Teekay LNG Partners, L.P. (a) .................... 30,111,896
219,926 TransMontaigne Partners, L.P. (a) ................ 9,234,693
276,155 Williams Partners, L.P. (a) ...................... 13,777,373
-------------
647,887,075
-------------

TOTAL MASTER LIMITED PARTNERSHIPS ................ 686,537,618
(Cost $368,077,946) -------------

COMMON STOCKS - 45.3%

ELECTRIC UTILITIES - 3.7%
82,100 Emera, Inc. (CAD) ................................ 2,793,023
220,400 ITC Holdings Corp. (a) ........................... 19,080,028
25,000 Northeast Utilities (a) .......................... 1,041,750
-------------
22,914,801
-------------

See Notes to Financial Statements Page 5

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
MAY 31, 2013 (UNAUDITED)

SHARES/
UNITS DESCRIPTION VALUE
------------ -------------------------------------------------- -------------
COMMON STOCKS (CONTINUED)

GAS UTILITIES - 5.9%
48,300 Atmos Energy Corp................................. $ 2,039,226
137,300 Laclede Group, Inc................................ 6,498,409
362,323 Questar Corp...................................... 8,808,072
512,130 UGI Corp.......................................... 19,558,245
-------------
36,903,952
-------------

MULTI-UTILITIES - 9.1%
252,500 Centerpoint Energy, Inc........................... 5,852,950
306,343 Dominion Resources, Inc........................... 17,323,697
231,000 National Grid PLC, ADR ........................... 13,758,360
685,300 NiSource, Inc. (a) ............................... 19,688,669
-------------
56,623,676
-------------

OIL, GAS & CONSUMABLE FUELS - 26.2%
270,553 Enbridge Energy Management, LLC (a) (b) .......... 8,046,246
226,700 Enbridge Income Fund Holdings, Inc. (CAD) ........ 5,530,015
86,430 Enbridge, Inc..................................... 3,734,640
177,480 Keyera Corp. (CAD) ............................... 10,254,210
636,258 Kinder Morgan Management, LLC (a) (b) ............ 51,676,875
445,600 Kinder Morgan, Inc. (a) .......................... 16,923,888
299,000 Pembina Pipeline Corp. (CAD) ..................... 9,349,969
337,250 Spectra Energy Corp............................... 10,309,733
440,991 TransCanada Corp.................................. 20,219,437
781,958 Williams Cos., Inc................................ 27,509,282
-------------
163,554,295
-------------

REAL ESTATE INVESTMENT TRUSTS - 0.4%
372,512 CorEnergy Infrastructure Trust ................... 2,913,044
-------------

TOTAL COMMON STOCKS .............................. 282,909,768
(Cost $230,998,379) -------------

TOTAL INVESTMENTS - 155.3% ....................... 969,447,386
(Cost $599,076,325) (c) -------------

NUMBER OF
CONTRACTS DESCRIPTION VALUE
------------ -------------------------------------------------- -------------
CALL OPTIONS WRITTEN - (0.4%)

Centerpoint Energy, Inc. Calls
2,125 @ $25.00 due August 2013 ......................... (74,375)
400 @ 22.50 due January 2014 ........................ (70,000)
-------------
(144,375)
-------------
Dominion Resources, Inc. Calls
596 @ 62.50 due June 2013 ........................... (1,788)
2,350 @ 62.50 due July 2013 ........................... (18,800)
-------------
(20,588)
-------------
Enbridge, Inc. Call
864 @ 50.00 due October 2013 ........................ (12,960)
-------------

Page 6 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
MAY 31, 2013 (UNAUDITED)

NUMBER OF
CONTRACTS DESCRIPTION VALUE
------------ -------------------------------------------------- -------------
CALL OPTIONS WRITTEN (CONTINUED)

Kinder Morgan, Inc. Calls
2,600 @ $40.00 due June 2013 ........................... $ (31,200)
481 @ 40.00 due September 2013 ...................... (37,037)
1,300 @ 42.50 due December 2013 ....................... (93,600)
-------------
(161,837)
-------------
National Grid PLC, ADR Calls
1,250 @ 60.00 due June 2013 ........................... (59,375)
260 @ 60.00 due September 2013 ...................... (33,800)
800 @ 65.00 due September 2013 ...................... (20,000)
-------------
(113,175)
-------------
NiSource, Inc. Calls
894 @ 32.00 due June 2013 ........................... (2,682)
515 @ 30.00 due July 2013 ........................... (11,588)
2,000 @ 31.00 due July 2013 ........................... (16,000)
2,000 @ 31.00 due October 2013 ........................ (70,000)
-------------
(100,270)
-------------
Questar Corp. Calls
503 @ 25.00 due July 2013 ........................... (20,120)
1,228 @ 26.00 due July 2013 ........................... (18,420)
1,858 @ 27.00 due October 2013 ........................ (46,450)
-------------
(84,990)
-------------
Spectra Energy Corp. Calls
1,690 @ 30.00 due June 2013 ........................... (202,800)
781 @ 33.00 due September 2013 ...................... (31,240)
900 @ 34.00 due September 2013 ...................... (22,500)
-------------
(256,540)
-------------
TransCanada Corp. Calls
2,000 @ 50.00 due July 2013 ........................... (26,000)
809 @ 50.00 due August 2013 ......................... (24,270)
1,300 @ 50.00 due November 2013 ....................... (78,000)
-------------
(128,270)
-------------
UGI Corp. Calls
3,760 @ 35.00 due July 2013 ........................... (1,222,000)
1,355 @ 40.00 due July 2013 ........................... (33,875)
-------------
(1,255,875)
-------------
Williams (The) Cos., Inc. Calls
200 @ 37.00 due June 2013 ........................... (4,000)
100 @ 38.00 due June 2013 ........................... (900)
1,400 @ 39.00 due July 2013 ........................... (21,700)
4,673 @ 40.00 due July 2013 ........................... (56,076)
810 @ 38.00 due August 2013 ......................... (48,600)
630 @ 39.00 due August 2013 ......................... (27,090)
-------------
(158,366)
-------------

TOTAL CALL OPTIONS WRITTEN ....................... (2,437,246)
(Premiums received $2,169,314) -------------

OUTSTANDING LOAN - (33.7%) ....................... (210,400,000)

See Notes to Financial Statements Page 7

FIRST TRUST ENERGY INCOME AND GROWTH FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
MAY 31, 2013 (UNAUDITED)

DESCRIPTION VALUE
-------------------------------------------------- -------------
NET OTHER ASSETS AND LIABILITIES - (21.2%) $(132,446,875)
-------------

NET ASSETS - 100.0% $ 624,163,265
=============

----------------------------------------------------------------------

(a) All or a portion of this security serves as collateral on the outstanding
loan.

(b) Non-income producing security which pays in-kind distributions.

(c) Aggregate cost for federal income tax purposes is $552,890,415. As of May
31, 2013, the aggregate gross unrealized appreciation for all securities
in which there was an excess of value over tax cost was $417,803,156 and
the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $1,246,185.

ADR American Depositary Receipt

CAD Canadian Dollar - Security is denominated in Canadian Dollars and is
translated into U.S. Dollars based upon the current exchange rate.

----------------------------------------------------------------------

VALUATION INPUTS

A summary of the inputs used to value the Fund's investments as of May 31, 2013,
is as follows (see Note 2A - Portfolio Valuation in the Notes to Financial
Statements):

ASSETS TABLE

LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
INVESTMENTS 5/31/2013 PRICES INPUTS INPUTS
----------------------------------------------------- ------------- ------------- ------------- ------------

Master Limited Partnerships*...................... $ 686,537,618 $ 686,537,618 $ -- $ --
Common Stocks* ............................... 282,909,768 282,909,768 -- --
------------- ------------- ------------- ------------
TOTAL INVESTMENTS.............................. $ 969,447,386 $ 969,447,386 $ -- $ --
============= ============= ============= ============

LIABILITIES TABLE

LEVEL 2 LEVEL 3
TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT
VALUE AT QUOTED OBSERVABLE UNOBSERVABLE
5/31/2013 PRICES INPUTS INPUTS
------------- ------------- ------------- ------------
Call Options Written........................... $ (2,437,246) $ (2,437,246) $ -- $ --
============= ============= ============= ============

*See Portfolio of Investments for industry breakout.

All transfers in and out of the Levels during the period are assumed to be
transferred on the last day of the period at their current value. There were no
transfers between Levels at May 31, 2013.

Page 8 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2013 (UNAUDITED)

ASSETS:

Investments, at value
(Cost $599,076,325).......................................................................... $ 969,447,386
Cash .......................................................................................... 10,685,999
Receivables:
Income taxes............................................................................... 726,909
Dividends.................................................................................. 380,975
Interest................................................................................... 1,394
Prepaid expenses .............................................................................. 23,658
Other assets .................................................................................. 1,848
-------------
Total Assets............................................................................. 981,268,169
-------------

LIABILITIES:
Outstanding loan .............................................................................. 210,400,000
Deferred income taxes ......................................................................... 143,177,310
Options written, at value (Premiums received $2,169,314) ...................................... 2,437,246
Payables:
Investment advisory fees................................................................... 707,258
Offering costs............................................................................. 116,129
Audit and tax fees......................................................................... 106,245
Administrative fees........................................................................ 57,189
Custodian fees............................................................................. 50,139
Legal fees................................................................................. 23,676
Interest and fees on loan.................................................................. 11,300
Transfer agent fees........................................................................ 6,751
Trustees' fees and expenses................................................................ 6,446
Printing fees.............................................................................. 1,038
Financial reporting fees................................................................... 771
Other liabilities ............................................................................. 3,406
-------------
Total Liabilities.......................................................................... 357,104,904
-------------
NET ASSETS .................................................................................... $ 624,163,265
=============
NET ASSETS CONSIST OF:
Paid-in capital ............................................................................... $ 405,306,481
Par value ..................................................................................... 193,437
Accumulated net investment income (loss), net of income taxes ................................. (19,042,199)
Accumulated net realized gain (loss) on investments, written options and foreign currency
transactions, net of income taxes ........................................................... (2,522,825)
Net unrealized appreciation (depreciation) on investments, written options and foreign
currency translation, net of income taxes ................................................... 240,228,371
_____________
NET ASSETS .................................................................................... $ 624,163,265
=============
NET ASSET VALUE, per Common Share (par value $0.01 per Common Share) .......................... $ 32.27
=============
Number of Common Shares outstanding (unlimited number of Common Shares has been authorized).... 19,343,694
=============

See Notes to Financial Statements Page 9

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 2013 (UNAUDITED)

INVESTMENT INCOME:

Dividends (net of foreign withholding tax of $147,693)......................................... $ 2,696,691
Interest....................................................................................... 3,812
-------------
Total investment income..................................................................... 2,700,503
-------------
EXPENSES:
Investment advisory fees....................................................................... 3,566,145
Interest and fees on loan...................................................................... 910,665
Administrative fees............................................................................ 286,153
Audit and tax fees............................................................................. 74,245
Printing fees.................................................................................. 70,697
Custodian fees................................................................................. 38,661
Shelf offering costs........................................................................... 34,535
Legal fees..................................................................................... 26,597
Trustees' fees and expenses.................................................................... 18,545
Transfer agent fees............................................................................ 17,376
Financial reporting fees....................................................................... 4,625
Other.......................................................................................... 25,896
-------------
Total expenses.............................................................................. 5,074,140
-------------
NET INVESTMENT INCOME (LOSS) BEFORE TAXES...................................................... (2,373,637)
-------------
Current state income tax benefit (expense)................................ (120)
Current federal income tax benefit (expense).............................. (20,555)
Current foreign income tax benefit (expense).............................. --
Deferred federal income tax benefit (expense)............................. 1,961,948
Deferred state income tax benefit (expense)............................... (1,076,443)
-------------
Total income tax benefit (expense).......................................................... 864,830
-------------
NET INVESTMENT INCOME (LOSS)................................................................... (1,508,807)
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) before taxes on:
Investments................................................................................. 7,443,834
Written options (a)......................................................................... (401,366)
Foreign currency transactions............................................................... 7,567
-------------
Net realized gain (loss) before taxes.......................................................... 7,050,035
-------------
Deferred federal income tax benefit (expense)............................. (2,507,064)
-------------
Total income tax benefit (expense).......................................................... (2,507,064)
-------------
Net realized gain (loss) on investments, written options and foreign currency transactions..... 4,542,971
-------------
Net change in unrealized appreciation (depreciation) before taxes on:

Investments................................................................................. 98,732,775
Written options (a)......................................................................... (535,229)
Foreign currency translations............................................................... (855)
-------------
Net change in unrealized appreciation (depreciation) before taxes.............................. 98,196,691
-------------
Deferred federal income tax benefits (expense)............................ (34,656,362)
-------------
Total income tax benefit (expense).......................................................... (34,656,362)
-------------
Net change in unrealized appreciation (depreciation) on investments, written options and
foreign currency translation................................................................ 63,540,329
-------------
NET REALIZED AND UNREALIZED GAIN (LOSS)........................................................ 68,083,300
-------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS............................... $ 66,574,493
=============

--------------------------------------------------------------------

(a) Primary risk exposure is equity option contracts.

Page 10 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS
ENDED YEAR
5/31/2013 ENDED
(UNAUDITED) 11/30/2012
------------- -------------
OPERATIONS:

Net investment income (loss)....................................................... $ (1,508,807) $ (994,244)
Net realized gain (loss)........................................................... 4,542,971 23,110,591
Net change in unrealized appreciation (depreciation)............................... 63,540,329 32,046,108
------------- -------------
Net increase (decrease) in net assets resulting from operations.................... 66,574,493 54,162,455
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net realized gain.................................................................. -- (24,121,463)
Return of capital.................................................................. (16,950,851) (4,687,903)
------------- -------------
Total distributions to shareholders................................................ (16,950,851) (28,809,366)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from Common Shares sold through shelf offerings........................... 92,870,400 70,272,000
Proceeds from Common Shares reinvested............................................. 284,869 733,281
Offering costs..................................................................... (165,000) (135,000)
------------- -------------
Net increase (decrease) in net assets resulting from capital transactions.......... 92,990,269 70,870,281
------------- -------------
Total increase (decrease) in net assets............................................ 142,613,911 96,223,370

NET ASSETS:
Beginning of period................................................................ 481,549,354 385,325,984
------------- -------------
End of period...................................................................... $ 624,163,265 $ 481,549,354
============= =============
Accumulated net investment income (loss), net of income taxes...................... $ (19,042,199) $ (17,533,392)
============= =============
CAPITAL TRANSACTIONS WERE AS FOLLOWS:
Common Shares at beginning of period............................................... 16,534,978 14,109,563
Common Shares sold through shelf offerings......................................... 2,800,000 2,400,000
Common Shares issued as reinvestment under the Dividend Reinvestment Plan.......... 8,716 25,415
------------- -------------
Common Shares at end of period..................................................... 19,343,694 16,534,978
============= =============

See Notes to Financial Statements Page 11

FIRST TRUST ENERGY INCOME AND GROWTH FUND
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED MAY 31, 2013 (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net increase (decrease) in net assets resulting from operations.................... $ 66,574,493
Adjustments to reconcile net increase (decrease) in net assets resulting from
operations to net cash used in operating activities:
Purchases of investments...................................................... (219,417,015)
Sales, maturities and paydowns of investments................................. 97,539,103
Proceeds from written options................................................. 3,050,676
Amount paid to close written options.......................................... (1,534,450)
Return of capital received from investment in MLPs............................ 16,846,501
Net realized gain/loss on investments and options............................. (7,042,468)
Net change in unrealized appreciation/depreciation on investments
and options................................................................ (98,197,546)

CHANGES IN ASSETS AND LIABILITIES:
Increase in income tax receivable............................................. (726,909)
Increase in interest receivable............................................... (1,394)
Decrease in dividends receivable (a).......................................... 424,340
Decrease in prepaid expenses.................................................. 28,877
Increase in interest and fees on loan payable................................. 126
Decrease in income tax payable................................................ (1,706,317)
Increase in investment advisory fees payable.................................. 182,131
Decrease in audit and tax fees payable........................................ (2,755)
Increase in legal fees payable................................................ 3,092
Decrease in printing fees payable............................................. (27,255)
Increase in administrative fees payable....................................... 15,359
Increase in custodian fees payable............................................ 38,661
Increase in transfer agent fees payable....................................... 726
Increase in Trustees' fees and expenses payable............................... 356
Increase in deferred income tax payable....................................... 36,277,921
Decrease in other liabilities................................................. (4,368)
-------------
CASH USED IN OPERATING ACTIVITIES.................................................. $(107,678,115)
-------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to Common Shareholders from return of capital................... (16,950,851)
Proceeds of Common Shares sold, net of offering costs......................... 92,743,355
Proceeds of Common Shares reinvested.......................................... 284,869
Proceeds from borrowing....................................................... 40,000,000
-------------
Cash flows provided by financing activities........................................ 116,077,373
-------------
Increase in cash................................................................... 8,399,258
Cash at beginning of period........................................................ 2,286,741
-------------
CASH AT END OF PERIOD.............................................................. $ 10,685,999
=============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest and fees.................................. $ 910,539
=============
Cash paid during the period for taxes.............................................. $ 2,453,901
=============

--------------------------------------------------------------------

(a) Includes net change in unrealized appreciation (depreciation) on foreign
currency of $(856).

Page 12 See Notes to Financial Statements

FIRST TRUST ENERGY INCOME AND GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD

SIX MONTHS
ENDED YEAR YEAR YEAR YEAR YEAR
5/31/2013 ENDED ENDED ENDED ENDED ENDED
(UNAUDITED) 11/30/2012 11/30/2011 11/30/2010 11/30/2009 11/30/2008
----------- ----------- ----------- ----------- ----------- -----------

Net asset value, beginning of period ....... $ 29.12 $ 27.31 $ 25.95 $ 20.20 $ 14.68 $ 26.74
--------- --------- --------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ............... (0.09) (a) (0.07) (a) (0.25) (a) (0.07) (a) (0.24) (a) (0.57)
Net realized and unrealized gain (loss) .... 4.26 3.70 3.45 (b) 7.51 7.43 (9.83)
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... 4.17 3.63 3.20 7.44 7.19 (10.40)
--------- --------- --------- --------- --------- ---------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net realized gain .......................... -- (1.64) (0.68) (0.27) (0.35) (1.66)
Return of capital .......................... (1.03) (0.32) (1.19) (1.52) (1.41) --
--------- --------- --------- --------- --------- ---------
Total distributions to Common
Shareholders ............................ (1.03) (1.96) (1.87) (1.79) (1.76) (1.66)
--------- --------- --------- --------- --------- ---------
Premiums from shares sold in Common ........
Share offering .......................... 0.01 0.14 0.03 0.10 0.09 --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 32.27 $ 29.12 $ 27.31 $ 25.95 $ 20.20 $ 14.68
========= ========= ========= ========= ========= =========
Market value, end of period ................ $ 33.30 $ 30.69 $ 27.45 $ 26.30 $ 22.30 $ 14.40
========= ========= ========= ========= ========= =========
TOTAL RETURN BASED ON NET ASSET VALUE (c)... 14.20% 14.01% 12.61% (d) 38.65% 51.03% (40.70)%
========= ========= ========= ========= ========= =========
TOTAL RETURN BASED ON MARKET VALUE (c) ..... 11.93% 19.50% 11.73% 27.29% 70.20% (34.74)%
========= ========= ========= ========= ========= =========
-------------------

Net assets, end of period (in 000's) ....... $ 624,163 $ 481,549 $ 385,326 $ 291,189 $ 136,520 $ 94,880
Portfolio turnover rate .................... 12% 26% 16% 20% 43% 38%

RATIOS OF EXPENSES TO AVERAGE NET ASSETS:
Including current and deferred
income taxes (e) ......................... 15.43% (f) 9.49% 8.70% 20.24% 25.79% (20.03)%
Excluding current and deferred
income taxes ............................. 1.89% (f) 2.25% 2.41% 2.71% 3.32% 4.80%
Excluding current and deferred
income taxes and interest expense ........ 1.55% (f) 1.79% 1.91% 1.98% 2.32% 2.55%

RATIOS OF NET INVESTMENT INCOME (LOSS) TO AVERAGE NET ASSETS:
Net investment income (loss) ratio
before tax expenses ...................... (0.89)% (f) (0.36)% (1.40)% (0.47)% (2.37)% (3.83)%
Net investment income (loss) ratio
including tax expenses (e) ............... (14.42)% (f) (7.59)% (7.69)% (17.99)% (24.84)% 21.00%

SENIOR SECURITIES:
Total Energy Notes outstanding
($25,000 per note) ....................... N/A N/A N/A N/A N/A 1,000
Principal amount and market value
per Energy Note (g) ...................... N/A N/A N/A N/A N/A $ 25,006
Asset coverage per Energy Note (h) ......... N/A N/A N/A N/A N/A $ 119,880
Total loan outstanding (in 000's) .......... $ 210,400 $ 170,400 $ 137,900 $ 90,000 $ 45,000 $ 5,650
Asset coverage per $1,000 senior
indebtedness (i) ......................... $ 3,967 $ 3,826 $ 3,794 $ 4,235 $ 4,034 $ 22,218

-------------------

(a) Based on average shares outstanding.

(b) Reimbursement from the Sub-Advisor represents less than $0.01.

(c) Total return is based on the combination of reinvested dividend, capital
gain and return of capital distributions, if any, at prices obtained by
the Dividend Reinvestment Plan, and changes in net asset value per share
for net asset value returns and changes in Common Share price for market
value returns. Total returns do not reflect sales load and are not
annualized for periods less than one year. Past performance is not
indicative of future results.

(d) During the year ended November 30, 2011, the Sub-Advisor reimbursed the
Fund $74,357 in connection with a trade error. The reimbursement received
from the Sub-Advisor had no effect on the Fund's total return for Common
Shares.

(e) Includes current and deferred income taxes associated with each component
of the Statement of Operations.

(f) Annualized.

(g) Includes accumulated and unpaid interest.

(h) Calculated by taking the Fund's total assets less the Fund's total
liabilities (not including the Energy Notes) and dividing by the
outstanding Energy Notes in 000's.

(i) Calculated by taking the Fund's total assets less the Fund's total
liabilities (not including the loan outstanding and the Energy Notes) and
dividing by the loan outstanding in 000's.

N/A Not Applicable.

See Notes to Financial Statements Page 13

--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

1. ORGANIZATION

First Trust Energy Income and Growth Fund (the "Fund") is a non-diversified,
closed-end management investment company organized as a Massachusetts business
trust on March 25, 2004, and is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940, as amended (the
"1940 Act"). The Fund trades under the ticker symbol FEN on the NYSE MKT.

The Fund's investment objective is to seek a high level of after-tax total
return with an emphasis on current distributions paid to shareholders. The Fund
seeks to provide its shareholders with an efficient vehicle to invest in a
portfolio of cash-generating securities of energy companies. The Fund focuses on
investing in publicly-traded master limited partnerships ("MLPs") and related
public entities in the energy sector, which Energy Income Partners, LLC ("EIP"
or the "Sub-Advisor") believes offer opportunities for income and growth. There
can be no assurance that the Fund will achieve its investment objective. The
Fund may not be appropriate for all investors.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP") requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates.

A. PORTFOLIO VALUATION:

The net asset value ("NAV") of the Common Shares of the Fund is determined daily
as of the close of regular trading on the New York Stock Exchange ("NYSE"),
normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. If
the NYSE closes early on a valuation day, the NAV is determined as of that time.
Domestic debt securities and foreign securities are priced using data reflecting
the earlier closing of the principal markets for those securities. The NAV per
Common Share is calculated by dividing the value of all assets of the Fund
(including accrued interest and dividends), less all liabilities (including
accrued expenses, dividends declared but unpaid, deferred income taxes and any
borrowings of the Fund) by the total number of Common Shares outstanding.

The Fund's investments are valued daily in accordance with valuation procedures
adopted by the Fund's Board of Trustees, and in accordance with provisions of
the 1940 Act. The Fund's securities will be valued as follows:

Common stocks, MLPs and other securities listed on any national or foreign
exchange (excluding the NASDAQ(R) Stock Market LLC ("NASDAQ") and the
London Stock Exchange Alternative Investment Market ("AIM")) are valued at
the last sale price on the exchange on which they are principally traded
or, for NASDAQ and AIM securities, the official closing price. Securities
traded on more than one securities exchange are valued at the last sale
price or official closing price, as applicable, at the close of the
securities exchange representing the principal market for such securities.

Exchange-traded options and futures contracts are valued at the closing
price in the market where such contracts are principally traded. If no
closing price is available, exchange-traded options and futures contracts
are valued at the mean between the most recent bid and asked prices.
Over-the-counter options and futures contracts are valued at their closing
bid prices.

Short-term investments that mature in less than 60 days when purchased are
valued at amortized cost.

All market quotations used in valuing the Fund's securities will be obtained
from a third party pricing service. If no quotation is received from a pricing
service, attempts will be made to obtain one or more broker quotes for the
security. In the event the pricing service does not provide a valuation, broker
quotations are not readily available, or the valuations received are deemed
unreliable, the Fund's Board of Trustees has designated First Trust Advisors
L.P. ("First Trust") to use a fair value method to value the Fund's securities.
Additionally, if events occur after the close of the principal markets for
certain securities (e.g., domestic debt and foreign securities) that could
materially affect the Fund's NAV, First Trust will use a fair value method to
value the Fund's securities. The use of fair value pricing is governed by
valuation procedures adopted by the Fund's Board of Trustees, and in accordance
with the provisions of the 1940 Act. As a general principle, the fair value of a
security is the amount which the Fund might reasonably expect to receive for the
security upon its current sale. In light of the judgment involved in fair
valuations, there can be no assurance that a fair value assigned to a particular
security will be the amount which the Fund might be able to receive upon its
current sale. Fair valuation of a security will be based on the consideration of
all available information, including, but not limited to, the following:

1) the type of security;

2) the size of the holding;

3) the initial cost of the security;

4) transactions in comparable securities;

5) price quotes from dealers and/or pricing services;

6) relationships among various securities;

7) information obtained by contacting the issuer, analysts, or the
appropriate stock exchange;

8) an analysis of the issuer's financial statements; and

9) the existence of merger proposals or tender offers that might affect
the value of the security.

Page 14

--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

If the securities in question are foreign securities, the following additional
information may be considered:

1) the value of similar foreign securities traded on other foreign
markets;

2) ADR trading of similar securities;

3) closed-end fund trading of similar securities;

4) foreign currency exchange activity;

5) the trading prices of financial products that are tied to baskets of
foreign securities;

6) factors relating to the event that precipitated the pricing problem;

7) whether the event is likely to recur; and

8) whether the effects of the event are isolated or whether they affect
entire markets, countries or regions.

The Fund is subject to fair value accounting standards that define fair value,
establish the framework for measuring fair value and provide a three-level
hierarchy for fair valuation based upon the inputs to the valuation as of the
measurement date. The three levels of the fair value hierarchy are as follows:

o Level 1 - Level 1 inputs are quoted prices in active markets for
identical investments. An active market is a market in which
transactions for the investment occur with sufficient frequency and
volume to provide pricing information on an ongoing basis.

o Level 2 - Level 2 inputs are observable inputs, either directly or
indirectly, and include the following:

o Quoted prices for similar investments in active markets.

o Quoted prices for identical or similar investments in markets
that are non-active. A non-active market is a market where
there are few transactions for the investment, the prices are
not current, or price quotations vary substantially either
over time or among market makers, or in which little
information is released publicly.

o Inputs other than quoted prices that are observable for the
investment (for example, interest rates and yield curves
observable at commonly quoted intervals, volatilities,
prepayment speeds, loss severities, credit risks, and default
rates).

o Level 3 - Level 3 inputs are unobservable inputs. Unobservable
inputs may reflect the reporting entity's own assumptions about the
assumptions that market participants would use in pricing the
investment.

The inputs or methodology used for valuing investments are not necessarily an
indication of the risk associated with investing in those investments. A summary
of the inputs used to value the Fund's investments as of May 31, 2013, is
included with the Fund's Portfolio of Investments.

B. OPTION CONTRACTS:

The Fund is subject to equity price risk in the normal course of pursuing its
investment objective and may write (sell) options to hedge against changes in
the value of equities. Also, the Fund seeks to generate additional income, in
the form of premiums received, from writing (selling) the options. The Fund may
write (sell) covered call or put options ("options") on all or a portion of the
common stock of energy companies held in the Fund's portfolio as determined to
be appropriate by the Sub-Advisor. The number of options the Fund can write
(sell) is limited by the amount of common stock of energy companies the Fund
holds in its portfolio. The Fund will not write (sell) "naked" or uncovered
options. When the Fund writes (sells) an option, an amount equal to the premium
received by the Fund is included in "Options written, at value" on the Fund's
Statement of Assets and Liabilities. Options are marked-to-market daily and
their value will be affected by changes in the value and dividend rates of the
underlying equity securities, changes in interest rates, changes in the actual
or perceived volatility of the securities markets and the underlying equity
securities and the remaining time to the options' expiration. The value of
options may also be adversely affected if the market for the options becomes
less liquid or trading volume diminishes.

Options the Fund writes (sells) will either be exercised, expire or be cancelled
pursuant to a closing transaction. If the price of the underlying equity
security exceeds the option's exercise price, it is likely that the option
holder will exercise the option. If an option written (sold) by the Fund is
exercised, the Fund would be obligated to deliver the underlying equity security
to the option holder upon payment of the strike price. In this case, the option
premium received by the Fund will be added to the amount realized on the sale of
the underlying security for purposes of determining gain or loss. If the price
of the underlying equity security is less than the option's strike price, the
option will likely expire without being exercised. The option premium received
by the Fund will, in this case, be treated as short-term capital gain on the
expiration date of the option. The Fund may also elect to close out its position
in an option prior to its expiration by purchasing an option of the same series
as the option written (sold) by the Fund. Gain or loss on options is presented
separately as "Net realized gain (loss) before taxes on written options" on the
Statement of Operations.

The options that the Fund writes (sells) give the option holder the right, but
not the obligation, to purchase a security from the Fund at the strike price on
or prior to the option's expiration date. The ability to successfully implement
the writing (selling) of covered call options depends on the ability of the
Sub-Advisor to predict pertinent market movements, which cannot be assured.
Thus, the use of options may require the Fund to sell portfolio securities at
inopportune times or for prices other than current market value, which may limit
the amount of appreciation the Fund can realize on an investment, or may cause
the Fund to hold a security that it might otherwise sell. As the writer (seller)
of a covered option, the Fund foregoes, during the option's life, the
opportunity to profit from increases in the market value of the security
covering the option above the sum of the premium and the strike price of the
option, but has retained the risk of loss should the price of the underlying
security decline. The writer (seller) of an option has no control over the time
when it may be required to fulfill its obligation as a writer (seller) of the
option. Once an option writer (seller) has received an exercise notice, it
cannot effect a closing purchase transaction in order to terminate its
obligation under the option and must deliver the underlying security to the
option holder at the exercise price.

Page 15

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum equity
price risk for purchased options is limited to the premium initially paid. In
addition, certain risks may arise upon entering into option contracts including
the risk that an illiquid secondary market will limit the Fund's ability to
close out an option contract prior to the expiration date and that a change in
the value of the option contract may not correlate exactly with changes in the
value of the securities hedged.

C. SECURITIES TRANSACTIONS AND INVESTMENT INCOME:

Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
daily on the accrual basis, including amortization of premiums and accretion of
discounts. The Fund will rely to some extent on information provided by the
MLPs, which is not necessarily timely, to estimate taxable income allocable to
the MLP units held in the Fund's portfolio and to estimate the associated
deferred tax asset or liability. From time to time, the Fund will modify its
estimates and/or assumptions regarding its deferred tax liability as new
information becomes available. To the extent the Fund modifies its estimates
and/or assumptions, the NAV of the Fund will likely fluctuate.

Distributions received from the Fund's investments in MLPs generally are
comprised of return of capital and investment income. The Fund records estimated
return of capital and investment income based on historical information
available from each MLP. These estimates may subsequently be revised based on
information received from the MLPs after their tax reporting periods are
concluded.

D. DISTRIBUTIONS TO SHAREHOLDERS:

The Fund intends to make quarterly distributions to Common Shareholders. The
Fund's distributions generally will consist of cash and paid-in-kind
distributions from MLPs or their affiliates, dividends from common stocks,
interest from debt instruments and income from other investments held by the
Fund less operating expenses, including taxes. Distributions to Common
Shareholders are recorded on the ex-date and are based on U.S. GAAP, which may
differ from their ultimate characterization for federal income tax purposes.

Distributions made from current or accumulated earnings and profits of the Fund
will be taxable to shareholders as dividend income. Distributions that are in an
amount greater than the Fund's current and accumulated earnings and profits will
represent a tax-deferred return of capital to the extent of a shareholder's
basis in the Common Shares, and such distributions will correspondingly increase
the realized gain upon the sale of the Common Shares. Additionally,
distributions not paid from current or accumulated earnings and profits that
exceed a shareholder's tax basis in the Common Shares will generally be taxed as
a capital gain.

No distributions paid during the six months ended May 31, 2013, are anticipated
to be characterized as taxable dividends for federal income tax purposes. The
remaining $16,950,851 in distributions paid during the six months ended May 31,
2013, is expected to be return of capital. However, the ultimate determination
of the character of the distributions will be made after the 2013 calendar year.
Distributions will automatically be reinvested in additional Common Shares
pursuant to the Fund's Dividend Reinvestment Plan unless cash distributions are
elected by the shareholder.

E. INCOME TAXES:

The Fund is treated as a regular C corporation for U.S. federal income tax
purposes and as such will be obligated to pay federal and applicable state and
foreign corporate taxes on its taxable income. The Fund's tax expense or benefit
is included in the Statement of Operations based on the component of income or
gains (losses) to which such expense or benefit relates. The current U.S.
federal maximum graduated income tax rate for corporations is 35%. In addition,
the Fund may be subject to a 20% federal alternative minimum tax on its federal
alternative minimum taxable income to the extent that its alternative minimum
tax exceeds its regular federal income tax. This differs from most investment
companies, which elect to be treated as "regulated investment companies" under
the U.S. Internal Revenue Code of 1986, as amended. The various investments of
the Fund may cause the Fund to be subject to state income taxes on a portion of
its income at various rates.

The tax deferral benefit the Fund derives from its investment in MLPs results
largely because the MLPs are treated as partnerships for federal income tax
purposes. As a partnership, an MLP has no income tax liability at the entity
level. As a limited partner in the MLPs in which it invests, the Fund will be
allocated its pro rata share of income, gains, losses, deductions and credits
from the MLPs, regardless of whether or not any cash is distributed from the
MLPs.

To the extent that the distributions received from the MLPs exceed the net
taxable income realized by the Fund from its investment, a tax liability
results. This tax liability is a deferred liability to the extent that MLP
distributions received have not exceeded the Fund's adjusted tax basis in the
respective MLPs. To the extent that distributions from an MLP exceed the Fund's
adjusted tax basis, the Fund will recognize a taxable capital gain. For the six
months ended May 31, 2013, distributions of $16,413,751 received from MLPs have
been reclassified as a return of capital. The cost basis of applicable MLPs has
been reduced accordingly.

The Fund's provision for income taxes consists of the following:

Current federal income tax benefit (expense)...... $ (20,555)
Current state income tax benefit (expense)........ (120)
Current foreign income tax benefit (expense)...... --
Deferred federal income tax benefit (expense) .... (35,201,478)
Deferred state income tax benefit (expense) ...... (1,076,443)
------------
Total income tax benefit (expense) ............... $(36,298,596)
============

Page 16

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

Deferred income taxes reflect the net tax effect of temporary differences
between the carrying amount of assets and liabilities for financial reporting
purposes and the amounts used for tax purposes. At May 31, 2013, the Fund had a
net operating loss carryforward for federal and state income tax purposes of
$12,486,738 and $23,121,878, respectively. The Fund's 2013 income tax provision
includes a full valuation allowance against the deferred tax assets associated
with the state net operating loss. Components of the Fund's deferred tax assets
and liabilities as of May 31, 2013, are as follows:

Deferred tax assets:
Federal net operating loss........................ $ 4,370,358
State net operating loss.......................... 1,649,023
State income taxes................................ 1,364,439
Capital loss carryforward......................... --
Other ............................................ 684,613
-------------
Total deferred tax assets......................... 8,068,433
Less: valuation allowance......................... (1,649,023)
-------------
Net deferred tax assets........................... $ 6,419,410
=============
Deferred tax liabilities:
Unrealized gains on investment securities......... $(149,596,720)
-------------
Total deferred tax liabilities.................... (149,596,720)
-------------
Total net deferred tax liabilities................ $(143,177,310)
=============

Total income taxes differ from the amount computed by applying the maximum
graduated federal income tax rate of 35% to net investment income and realized
and unrealized gains on investments.

Application of statutory income tax rate.......... $ 36,005,581
State income taxes, net .......................... 706,398
Change in valuation allowance..................... 426,933
Other ............................................ (840,316)
-------------
Total............................................. $ 36,298,596
=============

The Fund is subject to accounting standards that establish a minimum threshold
for recognizing, and a system for measuring, the benefits of a tax position
taken or expected to be taken in a tax return. Taxable years ending 2009, 2010,
2011 and 2012 remain open to federal and state audit. As of May 31, 2013,
management has evaluated the application of these standards to the Fund, and has
determined that no provision for income tax is required in the Fund's financial
statements for uncertain tax positions.

F. EXPENSES:

The Fund will pay all expenses directly related to its operations.

G. FOREIGN CURRENCY:

The books and records of the Fund are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the exchange rates prevailing at the end of the period.
Purchases and sales of investments and items of income and expense are
translated on the respective dates of such transactions. Unrealized gains and
losses on assets and liabilities, other than investments in securities, which
result from changes in foreign currency exchange rates have been included in
"Net change in unrealized appreciation (depreciation) before taxes on foreign
currency translation" on the Statement of Operations. Unrealized gains and
losses on investments in securities which result from changes in foreign
exchange rates are included with fluctuations arising from changes in market
price and are shown in "Net change in unrealized appreciation (depreciation)
before taxes on investments" on the Statement of Operations. Net realized
foreign currency gains and losses include the effect of changes in exchange
rates between trade date and settlement date on investment security
transactions, foreign currency transactions and interest and dividends received.
The portion of foreign currency gains and losses related to fluctuation in
exchange rates between the initial purchase trade date and subsequent sale trade
date is included in "Net realized gain (loss) before taxes on foreign currency
transactions" on the Statement of Operations.

3. INVESTMENT ADVISORY FEE, AFFILIATED TRANSACTIONS AND OTHER FEE ARRANGEMENTS

First Trust, the investment advisor to the Fund, is a limited partnership with
one limited partner, Grace Partners of DuPage L.P., and one general partner, The
Charger Corporation. The Charger Corporation is an Illinois corporation
controlled by James A. Bowen, Chief Executive Officer of First Trust. First
Trust is responsible for the ongoing monitoring of the Fund's investment
portfolio, managing the Fund's business affairs and providing certain
administrative services necessary for the management of the Fund. For these
investment management services, First Trust is entitled to a monthly fee
calculated at an annual rate of 1.00% of the Fund's Managed Assets. First Trust
also provides fund reporting services to the Fund for a flat annual fee in the
amount of $9,250.

Page 17

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

EIP serves as the Fund's sub-advisor and manages the Fund's portfolio subject to
First Trust's supervision. The Sub-Advisor receives a monthly sub-advisory fee
calculated at an annual rate of 0.50% of the Fund's Managed Assets that is paid
by First Trust out of its investment advisory fee.

First Trust Capital Partners, LLC ("FTCP"), an affiliate of First Trust, owns,
through a wholly-owned subsidiary, a 15% ownership interest in each of the
Sub-Advisor and EIP Partners, LLC, an affiliate of the Sub-Advisor. In addition,
as of November 29, 2012, FTCP purchased a preferred interest in the Sub-Advisor.
The preferred interest is non-voting and does not share in the profits or losses
of the Sub-Advisor. The Sub-Advisor may buy back any or all of FTCP's preferred
interest at any time and FTCP may sell back to the Sub-Advisor up to 50% of its
preferred interest on or after July 29, 2014, and any or all of its preferred
interest after November 29, 2015.

BNY Mellon Investment Servicing (US) Inc. ("BNYM IS") serves as the Fund's
administrator, fund accountant and transfer agent in accordance with certain fee
arrangements. As administrator and fund accountant, BNYM IS is responsible for
providing certain administrative and accounting services to the Fund, including
maintaining the Fund's books of account, records of the Fund's securities
transactions, and certain other books and records. As transfer agent, BNYM IS is
responsible for maintaining shareholder records for the Fund. The Bank of New
York Mellon ("BNYM") serves as the Fund's custodian in accordance with certain
fee arrangements. As custodian, BNYM is responsible for custody of the Fund's
assets.

Each Trustee who is not an officer or employee of First Trust, any sub-advisor
or any of their affiliates ("Independent Trustees") is paid a fixed annual
retainer of $125,000 per year and an annual per fund fee of $4,000 for each
closed-end fund or other actively managed fund and $1,000 for each index fund in
the First Trust Fund Complex. The fixed annual retainer is allocated pro rata
among each fund in the First Trust Fund Complex based on net assets.

Additionally, the Lead Independent Trustee is paid $15,000 annually, the
Chairman of the Audit Committee is paid $10,000 annually, and each of the
Chairmen of the Nominating and Governance Committee and the Valuation Committee
is paid $5,000 annually to serve in such capacities, with such compensation
allocated pro rata among each fund in the First Trust Fund Complex based on net
assets. Trustees are reimbursed for travel and out-of-pocket expenses in
connection with all meetings. The Lead Independent Trustee and each Committee
Chairman will serve two-year terms until December 31, 2013, before rotating to
serve as Chairman of another Committee or as Lead Independent Trustee. After
December 31, 2013, the Lead Independent Trustee and Committee Chairmen will
rotate every three years. The officers and "Interested" Trustee receive no
compensation from the funds for acting in such capacities.

4. PURCHASES AND SALES OF SECURITIES

Cost of purchases and proceeds from sales of investments, excluding short-term
investments, for the six months ended May 31, 2013, were $218,205,949 and
$97,539,103 respectively.

Written option activity for the Fund was as follows:

NUMBER
OF
WRITTEN OPTIONS CONTRACTS PREMIUMS
------------------------------------------------------------------------------
Options outstanding at November 30, 2012......... 23,896 $ 1,113,506
Options Written.................................. 62,309 3,050,676
Options Expired.................................. (15,614) (748,692)
Options Exercised................................ (22,986) (861,784)
Options Closed................................... (5,173) (384,392)
---------- -----------
Options outstanding at May 31, 2013.............. 42,432 $ 2,169,314
========== ===========

5. BORROWINGS

The Fund entered into a committed facility agreement with BNP Paribas Prime
Brokerage Inc. ("BNP") that has a maximum commitment amount of $230,000,000.
Absent certain events of default or failure to maintain certain collateral
requirements, BNP may not terminate the committed facility agreement except upon
180 calendar days' prior notice. The borrowing rate under the facility is equal
to the 1-month LIBOR plus 70 basis points. In addition, under the facility, the
Fund pays a commitment fee of 0.80% on the undrawn amount of such facility.

The average amount outstanding for the six months ended May 31, 2013, was
$177,740,659, with a weighted average interest rate of 0.90%. As of May 31,
2013, the Fund had outstanding borrowings of $210,400,000 under this committed
facility agreement. The high and low annual interest rates for the six months
ended May 31, 2013, were 0.92% and 0.89%, respectively. The interest rate at May
31, 2013, was 0.89%.

6. COMMON SHARE OFFERINGS

The Fund entered into an underwriting agreement with the Advisor, the
Sub-Advisor, Morgan Stanley & Co., Citigroup Global Markets, Inc. and RBC
Capital Markets, LLC and other underwriters on April 30, 2013, and July 26,
2012, pursuant to which 2,800,000 and 2,400,000 Common Shares were sold
respectively.

Page 18

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

Offering costs for the six months ended May 31, 2013, and year ended November
30, 2012, of $165,000 and $135,000, respectively, related to the issuance of the
Common Shares in the offering were charged to paid-in capital when the shares
were issued. The Fund used the net proceeds from the sales of the Common Shares
in accordance with its investment objective and policies. Transactions for the
six months ended May 31, 2013, and year ended November 30, 2012, related to the
public offering are as follows:

NET PROCEEDS
COMMON NET NET ASSET RECEIVED IN
SHARES PROCEEDS VALUE OF EXCESS OF
SOLD RECEIVED SHARES SOLD NET ASSET VALUE
--------- ------------ ------------- ---------------

Period Ended 5/31/2013 2,800,000 $ 92,705,400 $ 92,598,368 $ 107,032
Year Ended 11/30/2012 2,400,000 70,137,000 67,949,344 2,187,656
--------- ------------ ------------- ------------
5,200,000 $162,842,400 $ 160,547,712 $ 2,294,688
========= ============ ============= ============

7. INDEMNIFICATION

The Fund has a variety of indemnification obligations under contracts with its
service providers. The Fund's maximum exposure under these arrangements is
unknown. However, the Fund has not had prior claims or losses pursuant to these
contracts and expects the risk of loss to be remote.

8. INDUSTRY CONCENTRATION RISK

The Fund invests at least 85% of its Managed Assets in securities issued by
energy companies, energy sector MLPs and MLP-related entities and at least 65%
of its Managed Assets in equity securities of such MLPs and MLP related
entities. Given this industry concentration, the Fund is more susceptible to
adverse economic or regulatory occurrences affecting that industry than an
investment company that is not concentrated in a single industry. Energy issuers
may be subject to a variety of factors that may adversely affect their business
or operations, including high interest costs in connection with capital
construction programs, high leverage costs associated with environmental and
other regulations, the effects of economic slowdown, surplus capacity, increased
competition from other providers of services, uncertainties concerning the
availability of fuel at reasonable prices, the effects of energy conservation
policies and other factors.

9. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events to the Fund through
the date the financial statements were issued, and has determined that there was
the following subsequent event:

On July 11, 2013, the Fund declared a dividend of $0.52 per share to Common
Shareholders of record on July 24, 2013, payable July 31, 2013.

Page 19

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ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

DIVIDEND REINVESTMENT PLAN

If your Common Shares are registered directly with the Fund or if you hold your
Common Shares with a brokerage firm that participates in the Fund's Dividend
Reinvestment Plan (the "Plan"), unless you elect, by written notice to the Fund,
to receive cash distributions, all dividends, including any capital gain
distributions, on your Common Shares will be automatically reinvested by BNY
Mellon Investment Servicing (US) Inc. (the "Plan Agent"), in additional Common
Shares under the Plan. If you elect to receive cash distributions, you will
receive all distributions in cash paid by check mailed directly to you by the
Plan Agent, as the dividend paying agent.

If you decide to participate in the Plan, the number of Common Shares you will
receive will be determined as follows:

(1) If Common Shares are trading at or above net asset value ("NAV") at
the time of valuation, the Fund will issue new shares at a price equal
to the greater of (i) NAV per Common Share on that date or (ii) 95% of
the market price on that date.

(2) If Common Shares are trading below NAV at the time of valuation, the
Plan Agent will receive the dividend or distribution in cash and will
purchase Common Shares in the open market, on the NYSE or elsewhere,
for the participants' accounts. It is possible that the market price
for the Common Shares may increase before the Plan Agent has completed
its purchases. Therefore, the average purchase price per share paid by
the Plan Agent may exceed the market price at the time of valuation,
resulting in the purchase of fewer shares than if the dividend or
distribution had been paid in Common Shares issued by the Fund. The
Plan Agent will use all dividends and distributions received in cash
to purchase Common Shares in the open market within 30 days of the
valuation date except where temporary curtailment or suspension of
purchases is necessary to comply with federal securities laws.
Interest will not be paid on any uninvested cash payments.

You may elect to opt-out of or withdraw from the Plan at any time by giving
written notice to the Plan Agent, or by telephone at (866) 340-1104, in
accordance with such reasonable requirements as the Plan Agent and the Fund may
agree upon. If you withdraw or the Plan is terminated, you will receive a
certificate for each whole share in your account under the Plan, and you will
receive a cash payment for any fraction of a share in your account. If you wish,
the Plan Agent will sell your shares and send you the proceeds, minus brokerage
commissions.

The Plan Agent maintains all Common Shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. Common Shares in your account will be held by the
Plan Agent in non-certificated form. The Plan Agent will forward to each
participant any proxy solicitation material and will vote any shares so held
only in accordance with proxies returned to the Fund. Any proxy you receive will
include all Common Shares you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions
in Common Shares. However, all participants will pay a pro rata share of
brokerage commissions incurred by the Plan Agent when it makes open market
purchases.

Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions.
Capital gains and income are realized although cash is not received by you.
Consult your financial advisor for more information.

If you hold your Common Shares with a brokerage firm that does not participate
in the Plan, you will not be able to participate in the Plan and any dividend
reinvestment may be effected on different terms than those described above.

The Fund reserves the right to amend or terminate the Plan if in the judgment of
the Board of Trustees the change is warranted. There is no direct service charge
to participants in the Plan; however, the Fund reserves the right to amend the
Plan to include a service charge payable by the participants. Additional
information about the Plan may be obtained by writing BNY Mellon Investment
Servicing (US) Inc., 301 Bellevue Parkway, Wilmington, Delaware 19809.

PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that the Fund uses to determine how
to vote proxies and information on how the Fund voted proxies relating to
portfolio investments during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
the Fund's website located at http://www.ftportfolios.com; and (3) on the
Securities and Exchange Commission's ("SEC") website located at
http://www.sec.gov.

Page 20

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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

PORTFOLIO HOLDINGS

The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available (1) by calling (800) 988-5891; (2) on the Fund's website located
at http://www.ftportfolios.com; (3) on the SEC's website at http://www.sec.gov;
and (4) for review and copying at the SEC's Public Reference Room ("PRR") in
Washington, DC. Information regarding the operation of the PRR may be obtained
by calling (800) SEC-0330.

SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

The Joint Annual Meeting of Shareholders of the Common Shares of Macquarie/First
Trust Global Infrastructure/Utilities Dividend & Income Fund, First Trust Energy
Income and Growth Fund, First Trust Enhanced Equity Income Fund, First
Trust/Aberdeen Global Opportunity Income Fund, First Trust Mortgage Income Fund,
First Trust Strategic High Income Fund II, First Trust/Aberdeen Emerging
Opportunity Fund, First Trust Specialty Finance and Financial Opportunities
Fund, First Trust Active Dividend Income Fund, First Trust Energy Infrastructure
Fund, Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income
Fund and First Trust High Income Long/Short Fund was held on April 17, 2013 (the
"Annual Meeting"). At the Annual Meeting, James A. Bowen and Niel B. Nielson
were elected by the Common Shareholders of the First Trust Energy Income and
Growth Fund as Class III Trustees for a three-year term expiring at the Fund's
annual meeting of shareholders in 2016. The number of votes cast in favor of Mr.
Bowen was 14,286,676, the number of votes against was 236,938 and the number of
abstentions was 2,016,215. The number of votes cast in favor of Mr. Nielson was
14,322,067, the number of votes against was 201,547 and the number of
abstentions was 2,016,215. Richard E. Erickson, Thomas R. Kadlec and Robert F.
Keith are the other current and continuing Trustees.

RISK CONSIDERATIONS

Risks are inherent in all investing. The following summarizes some, but not all,
of the risks that should be considered for the Fund. For additional information
about the risks associated with investing in the Fund, please see the Fund's
prospectus and statement of additional information, as well as other Fund
regulatory filings.

CURRENCY RISK: The value of securities denominated or quoted in foreign
currencies may be adversely affected by fluctuations in the relative currency
exchange rates and by exchange control regulations. The Fund's investment
performance may be negatively affected by a devaluation of a currency in which
the Fund's investments are denominated or quoted. Further, the Fund's investment
performance may be significantly affected, either positively or negatively, by
currency exchange rates because the U.S. dollar value of securities denominated
or quoted in another currency will increase or decrease in response to changes
in the value of such currency in relation to the U.S. dollar. While certain of
the Fund's non-U.S. dollar-denominated securities may be hedged into U.S.
dollars, hedging may not alleviate all currency risks.

INVESTMENT AND MARKET RISK: An investment in the Fund's Common Shares is subject
to investment risk, including the possible loss of the entire principal
invested. An investment in Common Shares represents an indirect investment in
the securities owned by the Fund. The value of these securities, like other
market investments, may move up or down, sometimes rapidly and unpredictably.
Common Shares at any point in time may be worth less than the original
investment, even after taking into account the reinvestment of Fund dividends
and distributions. Security prices can fluctuate for several reasons including
the general condition of the securities markets, or when political or economic
events affecting the issuers occur. When the Advisor or Sub-Advisor determines
that it is temporarily unable to follow the Fund's investment strategy or that
it is impractical to do so (such as when a market disruption event has occurred
and trading in the securities is extremely limited or absent), the Fund may take
temporary defensive positions.

LEVERAGE RISK: The use of leverage results in additional risks and can magnify
the effect of any losses. The funds borrowed pursuant to a leverage borrowing
program constitute a substantial lien and burden by reason of their prior claim
against the income of the Fund and against the net assets of the Fund in
liquidation. If the Fund is not in compliance with certain credit facility
provisions, the Fund may not be permitted to declare dividends or other
distributions.

MLP RISK: An investment in MLP units involves risks which differ from an
investment in common stock of a corporation. Holders of MLP units have limited
control and voting rights on matters affecting the partnership. In addition,
there are certain tax risks associated with an investment in MLP units and
conflicts of interest exist between common unit holders and the general partner,
including those arising from incentive distribution payments.

NON-DIVERSIFICATION RISK: The Fund is a non-diversified investment company under
the 1940 Act and will not be treated as a regulated investment company under the
Internal Revenue Code. Accordingly, there are no regulatory requirements under
the 1940 Act or the Internal Revenue Code on the minimum number or size of
securities held by the Fund.

Page 21

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ADDITIONAL INFORMATION (CONTINUED)
--------------------------------------------------------------------------------

FIRST TRUST ENERGY INCOME AND GROWTH FUND
MAY 31, 2013 (UNAUDITED)

NON-U.S. RISK: The Fund may invest a portion of its assets in the equity
securities of issuers domiciled in jurisdictions other than the U.S. Investments
in the securities and instruments of non-U.S. issuers involve certain
considerations and risks not ordinarily associated with investments in
securities and instruments of U.S. issuers. Non-U.S. companies are not generally
subject to uniform accounting, auditing and financial standards and requirements
comparable to those applicable to U.S. companies. Non-U.S. securities exchanges,
brokers and listed companies may be subject to less government supervision and
regulation than exists in the United States. Dividend and interest income may be
subject to withholding and other non-U.S. taxes, which may adversely affect the
net return on such investments. A related risk is that there may be difficulty
in obtaining or enforcing a court judgment abroad.

RESTRICTED SECURITIES RISK: The Fund may invest in unregistered or otherwise
restricted securities. The term "restricted securities" refers to securities
that are unregistered or are held by control persons of the issuer and
securities that are subject to contractual restrictions on their resale. As a
result, restricted securities may be more difficult to value and the Fund may
have difficulty disposing of such assets either in a timely manner or for a
reasonable price. In order to dispose of an unregistered security, the Fund,
where it has contractual rights to do so, may have to cause such security to be
registered. A considerable period may elapse between the time the decision is
made to sell the security and the time the security is registered so that the
Fund could sell it. Contractual restrictions on the resale of securities vary in
length and scope and are generally the result of a negotiation between the
issuer and acquirer of the securities. The Fund would, in either case, bear
market risks during that period.

Page 22

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FIRST TRUST

INVESTMENT ADVISOR
First Trust Advisors L.P.
120 E. Liberty Drive, Suite 400
Wheaton, IL 60187

INVESTMENT SUB-ADVISOR
Energy Income Partners, LLC
49 Riverside Avenue
Westport, CT 06880

ADMINISTRATOR,
FUND ACCOUNTANT &
TRANSFER AGENT
BNY Mellon Investment Servicing (US) Inc.
301 Bellevue Parkway
Wilmington, DE 19809

CUSTODIAN
The Bank of New York Mellon
101 Barclay Street, 20th Floor
New York, NY 10286

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
111 S. Wacker Drive
Chicago, IL 60606

LEGAL COUNSEL
Chapman and Cutler LLP
111 W. Monroe Street
Chicago, IL 60603

[BLANK BACK COVER]

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS.

(a) Schedule of Investments in securities of unaffiliated issuers as of the
close of the reporting period is included as part of the report to
shareholders filed under Item 1 of this form.

(b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

(a) Not applicable.

(b) There has been no change, as of the date of this filing, in any of the
portfolio managers identified in response to paragraph (a)(1) of this Item
in the registrant's most recently filed annual report on Form N-CSR.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which the shareholders
may recommend nominees to the Registrant's board of trustees, where those
changes were implemented after the Registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The Registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the
Registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days
of the filing date of the report that includes the disclosure required by
this paragraph, based on their evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the Registrant's second fiscal quarter
of the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control
over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section
906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(registrant) First Trust Energy Income and Growth Fund
--------------------------------------------------------------------

By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)

Date July 23, 2013
------------------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By (Signature and Title)* /s/ Mark R. Bradley
------------------------------------------------------
Mark R. Bradley, President and
Chief Executive Officer
(principal executive officer)

Date July 23, 2013
------------------

By (Signature and Title)* /s/ James M. Dykas
------------------------------------------------------
James M. Dykas, Treasurer, Chief Financial Officer
and Chief Accounting Officer
(principal financial officer)

Date July 23, 2013
------------------

* Print the name and title of each signing officer under his or her signature.