CorEnergy Releases First Quarter 2013 Financial Results

  CorEnergy Releases First Quarter 2013 Financial Results

Business Wire

LEAWOOD, Kan. -- May 10, 2013

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR), today announced financial
results for the first quarter ended March 31, 2013.

First Quarter Highlights and Subsequent Events

  *The Pinedale LGS acquired in December 2012 provides majority of CorEnergy
    revenue in first quarter of 2013
  *First-quarter assets meet requirements for Real Estate Investment Trust
    (REIT) status
  *Remaining portfolio of publicly traded Master Limited Partnerships (MLPs)
    liquidated
  *First-quarter dividend of $0.125 per share paid on March 19, 2013
  *$20 million line of credit established subsequent to quarter end

Quarterly Performance Review

CorEnergy reported net income attributable to common stockholders of $2.4
million, or $0.10 per common share, for the quarter ended March 31, 2013. A
first quarter dividend of $0.125 was paid on March 19, 2013. Total assets were
$289.6 million and total CorEnergy stockholders’ equity was $180.3 million as
of March 31, 2013, compared to $111.4 million and $98.9 million respectively
at Nov. 30, 2012. The increase in total assets and stockholders’ equity is
primarily due to the acquisition and financing of the Pinedale LGS in December
2012. CorEnergy believes that the Pinedale LGS and CorEnergy’s legacy holdings
will support 2013 annualized dividend payments of no less than $0.50 per
share.

Because a majority of the company’s assets are now REIT qualifying, management
believes that non-GAAP performance measures utilized by REITs, including Funds
from Operations (“FFO”) and Adjusted Funds from Operations (“AFFO”), also
provide useful insights into CorEnergy’s operational performance.

                                                                
First Quarter Ended March 31, 2013 Financial Summary
    
                                                     Total           Per Share
          Net Income (attributable to CorEnergy      $ 2,412,753     $  0.100
          Stockholders)
          Funds from Operations (FFO)                $ 3,498,394     $  0.145
          Adjusted Funds From Operations (AFFO)      $ 3,177,810     $  0.132
          Dividends Paid to Stockholders             $ 3,017,583     $  0.125

FFO and AFFO are non-GAAP measures presented in accordance with the guidelines
for calculation and reporting issued by the National Association of Real
Estate Investment Trusts (“NAREIT”). FFO represents net income (loss) before
allocation to minority interests (computed in accordance with GAAP, excluding
gains or losses) from sales of depreciable operating property, real
estate-related depreciation and amortization (excluding amortization of
deferred financing costs or loan origination costs) and after adjustments for
unconsolidated partnerships and joint ventures. The Company considers FFO an
important supplemental measure of operating performance that is frequently
used by securities analysts, investors and other interested parties. CorEnergy
defines AFFO as FFO plus transaction costs, amortization of debt issuance
costs, deferred leasing costs, and above-market rent, less maintenance capital
expenditures (if any), amortization of debt premium and adjustments to lease
revenue resulting from the asset sales. Management uses AFFO as a measure of
long-term sustainable operational performance.

Real Property Assets and Leases

Pinedale Liquids Gathering System (“LGS”), Oil & Gas Gathering System, Wyoming

The Pinedale LGS is a system of gathering, storage, and pipeline facilities
with associated real property rights in the Pinedale Anticline in Wyoming.
Construction of the Pinedale LGS was completed by Ultra Petroleum Corp. in
2010 and the system consists of more than 150 miles of pipelines with 107
receipt points, and four central storage facilities that are utilized by Ultra
Petroleum Corp. as a method for gathering, separating, storing, selling and/or
disposing of produced water.

The Pinedale LGS is subject to a 15-year triple net participating lease with
Ultra Petroleum. Annual rent for the initial lease term includes a minimum of
$20 million (as adjusted annually for changes based on the Consumer Price
Index (“CPI”), subject to annual maximum adjustments of 2 percent) and a
maximum of $27.5 million, with the exact rental amount determined by the
actual volume handled by the Pinedale LGS.

Approximately 88.7 percent of the Company's total lease revenue for the first
quarter of 2013 was derived from Ultra Petroleum Corp. As of March31, 2013,
approximately 94 percent of the Company's leased property, based on the gross
book value of real estate investments, was leased to Ultra Petroleum Corp. The
Pinedale LGS is being depreciated for book purposes over an estimated useful
life of 26 years.

CorEnergy holds 81.05 percent of the economic interest in the Pinedale LGS.
Prudential Financial, Inc., which invested $30 million to fund a portion of
the acquisition, holds 18.95 percent of the economic interest.

Eastern Interconnect Project, Electric Transmission, New Mexico

The Company's 40 percent undivided interest in a 216-mile power transmission
line that moves electric power across New Mexico between Albuquerque and
Clovis, called the Eastern Interconnect Project (“EIP”), is leased to Public
Service Company of New Mexico (“PNM”) under net operating leases with various
terms.

Approximately 11.3 percent of the Company's total lease revenue for the first
quarter of 2013 was derived from PNM. As of March 31, 2013, approximately 5.8
percent of the Company's leased property, based on the gross book value of
real estate investments, was leased to PNM.

Private Company Update

The fair value of Lightfoot as of March 31, 2013, increased approximately $760
thousand or 9 percent, as compared to the valuation at December 31, 2012,
primarily due to market value changes in the MLP comparable companies.
Lightfoot’s assets consist of an 83.5 percent interest in Arc Terminals
(“Arc”) and a minority position in a Liquefied Natural Gas facility located in
Mississippi.

Throughout 2012 Arc retained cash for capital expenditures and potential
acquisitions and in February 2013 announced the acquisition of Gulf Coast
Asphalt Company’s marine terminalling facility in Mobile, Alabama and rail
transloading facility in Saraland, Alabama. The transaction expands Arc’s
capacity to over 2.5 million barrels of storage and three rail (un)loading
operations.

The fair value of VantaCore as of March 31, 2013, increased $1.4 million, or
13 percent, as compared to the fair value at December 31, 2012. The increase
is attributable to VantaCore's continued improved performance, mostly driven
by the incremental results of Laurel Aggregates, as well as the success of its
cost cutting initiatives and price increases that have gone into effect.

Mowood, LLC is the holding company of Omega Pipeline Company, LLC (“Omega”).
Omega’s performance was generally flat for the quarter ended March 31, 2013
compared to Nov. 30, 2012 and Feb. 29, 2012. A slight increase in sales for
the three-month period ended March 31, 2013 as compared to the three-month
period ended Feb. 29, 2012 is largely attributable to higher gas usage during
the winter of 2013.

REIT Qualification

CorEnergy satisfied the quarterly REIT asset test for the quarter ended March
31, 2013, and anticipates that it will satisfy the quarterly asset tests and
annual income test necessary to qualify and elect to be taxed as a REIT for
2013. Because certain of CorEnergy’s assets do not qualify as REIT assets and
do not produce REIT-qualifying income, the Company undertook some modest
restructuring and contributed those assets into wholly-owned taxable REIT
subsidiaries prior to 2013. The Company also changed its fiscal year end from
November 30 to December 31, resulting in a one-month transition period ending
December 31, 2012 that is also reflected in the Company’s filing today.

Outlook

“CorEnergy is on track in our strategy to build a diversified energy
infrastructure REIT, and the first three months of 2013 mark our first
reporting period meeting the quarterly REIT-qualification test. The market has
responded positively to our acquisition of the Pinedale Liquids Gathering
System (LGS) in December 2012 and shareholders received a dividend increase
for the quarter," said David Schulte, Chief Executive Officer of CorEnergy.
"Our goal in 2013 is to continue to grow shareholder value by making
acquisitions of energy infrastructure real property that is leased to strong
operating companies, provides long-term contracted cash flows and supports
stable dividends with potential long-term growth approximating inflation. The
management team is committed to structuring acquisitions that are accretive to
CorEnergy's stockholders, with management incentives focused on distribution
growth and alignment of risk through CorEnergy equity ownership.”

A number of possible acquisitions ranging in value from $50 and $200 million
are in preliminary stages of review. There can be no assurance that any of
these acquisition opportunities will result in consummated transactions. The
Company also put in place a $20 million credit facility which will initially
be unfunded, but which can be utilized for future acquisitions.

2013 First Quarter Earnings Conference Call

CorEnergy will host a conference call Monday, May 13, 2013, at 11:00 a.m. CST
to discuss its financial results. Please dial into the call at 877-407-8035
approximately five to ten minutes prior to the scheduled start time.

The call will also be webcast in a listen-only format. A link to the webcast
will be accessible at corenergy.corridortrust.com.

A replay of the call will be available until 11:59 p.m. CST June 13, 2013, by
dialing 877-660-6853. The Conference ID # is 413689. A replay of the webcast
will also be available on the company’s website at corenergy.corridortrust.com
through May 13, 2014.

About CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR), primarily owns midstream
and downstream U.S. energy infrastructure assets subject to long-term triple
net participating leases with energy companies. These assets include
pipelines, storage tanks, transmission lines and gathering systems. The
Company’s principal objective is to provide stockholders with an attractive
risk-adjusted total return, with an emphasis on distributions and long-term
distribution. CorEnergy is managed by Corridor InfraTrust Management, LLC, a
real property asset manager focused on U.S. energy infrastructure and an
affiliate of Tortoise Capital Advisors, L.L.C., a registered investment
adviser with over $11.8 billion of assets under management in the U.S. energy
infrastructure sector as of April 30, 2013. For more information, please visit
corenergy.corridortrust.com.

Forward-Looking Statements

This press release contains certain statements that may include
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical fact, included herein are
"forward-looking statements." Although CorEnergy believes that the
expectations reflected in these forward-looking statements are reasonable,
they do involve assumptions, risks and uncertainties, and these expectations
may prove to be incorrect. Actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including those discussed in CorEnergy’s reports that are filed with
the Securities and Exchange Commission. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
press release. Other than as required by law, CorEnergy does not assume a duty
to update any forward-looking statement. In particular, any distribution paid
in the future to our stockholders will depend on the actual performance of
CorEnergy, its costs of leverage and other operating expenses and will be
subject to the approval of CorEnergy’s Board of Directors and compliance with
leverage covenants.

                                                          
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED BALANCE SHEETS
                                                                 
                             March 31,                          December 31,
                             2013              November 30,      2012
                             (Unaudited)       2012              (Unaudited)
                                                                 
Assets
Leased property, net of
accumulated depreciation
of $4,394,248,
$1,131,680 and               $ 240,299,030     $ 12,995,169      $ 243,078,709
$1,614,569 at March 31
2013, November 30, 2012,
and December 31, 2012,
respectively
Other equity securities,       21,895,854        19,866,621        19,707,126
at fair value
Cash and cash                  18,196,151        14,333,456        17,680,783
equivalents
Trading securities, at         -                 55,219,411        4,318,398
fair value
Property and equipment,
net of accumulated
depreciation of
$1,825,253, $1,751,202         3,529,836         3,589,022         3,566,030
and $1,774,616 at March
31, 2013, November 30,
2012, and December 31,
2012, respectively
Escrow receivable              698,729           698,729           698,729
Accounts receivable            1,664,265         1,570,257         922,894
Intangible lease asset,
net of accumulated
amortization of
$510,839, $413,580 and         583,878           681,191           656,863
$437,908 at March 31,
2013, November 30, 2012
and December 31, 2012,
respectively
Deferred debt issuance
costs, net of
accumulated amortization
of $145,005, $0 and            1,403,348         -                 1,520,823
$16,530, at March 31,
2013, November 30, 2012,
and December 31, 2012
Deferred lease costs,
net of accumulated
amortization of $17,246,
$0 and $1,967 at March         903,216           -                 912,875
31, 2013, November 30,
2012, and December 31,
2012, respectively
Prepaid expenses and          462,713          2,477,977        598,755
other assets
Total Assets                 $ 289,637,020     $ 111,431,833     $ 293,661,985
                                                                 
Liabilities and Equity
Long-term debt               $ 70,000,000      $ -               $ 70,000,000
Accounts payable and
other accrued                  4,064,102         2,885,631         4,413,420
liabilities
Lease obligation               -                 27,522            20,698
Current tax liability          208,931           -                 3,855,947
Deferred tax liability         3,131,096         7,172,133         2,396,043
Line of credit                 139,397           120,000           -
Unearned Income               1,422,457        2,370,762        2,133,685
Total Liabilities            $ 78,965,983      $ 12,576,048      $ 82,819,793
                                                                 
Equity
Warrants, no par value;
945,594 issued and
outstanding at March 31,     $ 1,370,700       $ 1,370,700       $ 1,370,700
2013, November 30, 2012,
and December 31, 2012
(5,000,000 authorized)
Capital stock,
non-convertible, $0.001
par value; 24,147,958
shares issued and
outstanding at March 31,
2013, 9,190,667 shares
issued and outstanding         24,148            9,191             24,141
at November 30, 2012,
and 24,147,958 shares
issued and outstanding
at December 31, 2012
(100,000,000 shares
authorized)
Additional paid-in             172,288,226       91,763,475        175,256,675
capital
Accumulated retained          6,621,776        5,712,419        4,209,023
earnings
Total CorEnergy Equity        180,304,850      98,855,785       180,860,539
Non-controlling Interest      30,366,187       -                29,981,653
Total Equity                  210,671,037      98,855,785       210,842,192
Total Liabilities and        $ 289,637,020     $ 111,431,833     $ 293,661,985
Equity

                                                       
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                      
                                                             For the
                                                              One-Month
                                                             Transition
                                                              Period
                      For the Three-Month Periods Ended       Ended December
                      March 31, 2013     February 29,         31, 2012
                                         2012
Revenue
Lease revenue         $ 5,638,244        $  638,244           $  857,909
Sales revenue          2,515,573         2,437,310          868,992     
Total Revenue          8,153,817         3,075,554          1,726,901   
                                                              
Expenses
Cost of sales
(excluding              2,003,639           2,004,672            686,976
depreciation
expense)
Management fees,
net of expense          643,814             247,381              155,242
reimbursements
Asset acquisition       31,817              -                    64,733
expenses
Professional fees       454,183             108,578              333,686
Depreciation            2,857,036           246,805              499,357
expense
Amortization            15,279              -                    1,967
expense
Operating               206,904             172,641              48,461
expenses
Directors' fees         18,000              14,581               8,500
Other expenses         122,706           57,260             27,500      
Total Expenses         6,353,378         2,851,918          1,826,422   
Operating Income       1,800,439         223,636            (99,521     )
(Loss)
Other Income
(Expense)
Net distributions
and dividend            13,124              85,262               2,325
income
Net realized and
unrealized gain         316,063             2,862,272            (1,769,058  )
(loss) on trading
securities
Net realized and
unrealized gain         2,425,986           6,069,194            (159,495    )
(loss) on other
equity securities
Interest Expense       (737,381   )       (27,409    )        (416,137    )
Total Other            2,017,792         8,989,319          (2,342,365  )
Income (Expense)
Income (Loss)
before income          3,818,231         9,212,955          (2,441,886  )
taxes
Taxes
Current tax             285,891            10,000              3,855,947   
expense
Deferred tax           735,053           3,455,914          (4,776,090  )
expense (benefit)
Income tax
expense                1,020,944         3,465,914          (920,143    )
(benefit), net
Net Income (Loss)       2,797,287           5,747,041            (1,521,743  )
Less: Net Income
(Loss)
attributable to        384,534           -                  (18,347     )
non-controlling
interest
Net Income (Loss)
attributable to       $ 2,412,753       $  5,747,041        $  (1,503,396  )
CORR Stockholders
Earnings (Loss)
Per Common Share:
Basic and Diluted     $ 0.10             $  0.63              $  (0.10       )
Weighted Average
Shares of Common
Stock
Outstanding:
Basic and Diluted       24,141,720          9,176,889            15,564,861
Dividends
declared per          $ 0.125            $  0.110             $  0.000
share

                                                                                                              
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF EQUITY
                                                                                 
                                                                                                     
                                                                                Retained                             
                                                                Additional          Earnings           Non-
                    Capital Stock                               Paid-in             (Accumu-           Controlling
                    Shares         Amount       Warrants        Capital             lated Deficit)     Interest           Total
                                                                                    
Balance at
November 30,        9,146,506      $ 9,147      $ 1,370,700     $ 98,444,952       $ (4,345,626 )      -               $ 95,479,173  
2010
Net Income          -                -            -               -                   2,922,143          -                  2,922,143
Distributions
to stockholders
sourced as          -                -            -               (3,755,607  )       -                  -                  (3,755,607  )
return of
capital
Reinvestment of
distributions       30,383           30           -               252,212             -                  -                  252,242
to stockholders
Consolidation
of wholly-owned     -               -           -              741,181           (5,212,819 )      -                (4,471,638  )
subsidiary
Balance at
November 30,        9,176,889       9,177       1,370,700      95,682,738        (6,636,302 )      -                90,426,313  
2011
Net Income          -                -            -               -                   12,348,721                            12,348,721
Distributions
to stockholders
sourced as          -                -            -               (4,040,273  )       -                  -                  (4,040,273  )
return of
capital
Reinvestment of
distributions       13,778          14          -              121,010           -                -                121,024     
to stockholders
Balance at
November 30,        9,190,667       9,191       1,370,700      91,763,475        5,712,419        -                98,855,785  
2012
Net Loss            -                -            -               -                   (1,503,396 )       (18,347    )       (1,521,743  )
Net offering        14,950,000       14,950       -               83,493,200          -                  -                  83,508,150
proceeds
Non-controlling
interest            -               -           -             -                 -                30,000,000       30,000,000  
contribution
Balance at
December 31,        24,140,667      24,141      1,370,700     175,256,675       4,209,023        29,981,653       210,842,192 
2012
(Unaudited)
Net Income          -                -            -               -                   2,412,753          384,534            2,797,287
Dividends Paid      -                -            -               (3,017,583  )       -                  -                  (3,017,583  )
Reinvestment of
dividends paid      7,291           7           -              49,134            -                -                49,141      
to stockholders
Balance at
March 31, 2013      24,147,958     $ 24,148     $ 1,370,700     $ 172,288,226      $ 6,621,776       $ 30,366,187      $ 210,671,037 
(Unaudited)

                                                       
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                              
                                                              
                                                              For the
                                                              One-Month
                                                              Transition
                                                              Period
                     For the Three-Month Periods Ended        Ended December
                     March 31, 2013     February 29, 2012     31, 2012
Operating
Activities
Net Income           $ 2,797,287        $  5,747,041          $ (1,521,743   )
(Loss)
Adjustments to
reconcile net
income (loss) to
net cash
provided by
operating
activities:
Distributions
received from          -                   1,053,007            -
investment
securities
Deferred income        735,053             3,455,914            (4,776,090   )
tax, net
Depreciation           2,857,036           246,805              499,357
expense
Amortization           216,738             30,458               42,826
expense
Realized and
unrealized
(gain) loss on         (316,063   )        (2,862,272  )        1,769,058
trading
securities
Realized and
unrealized
(gain) loss on         (2,425,986 )        (6,069,194  )        159,495
other equity
securities
Changes in
assets and
liabilities:
(Increase)
decrease in            (741,371   )        (813,036    )        647,363
accounts
receivable
Decrease in            -                   (711,229    )        -
lease receivable
(Increase)
decrease in            136,042             (292,105    )        1,879,222
prepaid expenses
and other assets
Increase
(decrease) in
accounts payable       (349,318   )        (107,111    )        1,527,789
and other
accrued
liabilities
Increase
(decrease) in          (3,647,016 )        -                    3,855,947
current income
tax liability
Increase in           (711,228   )       -                  (237,077     )
unearned income
Net cash
provided by
(used in)            $ (1,448,826 )     $  (321,722    )      $ 3,846,147    
operating
activities
Investing
Activities
Proceeds from
sale of
long-term
investment of          4,557,379           -                    49,131,955
trading and
other equity
securities
Deferred lease         (5,620     )        3,076                (914,843     )
costs
Purchase of
leased asset           -                   (29,722     )        (230,559,484 )
property
Purchases of
property and           (41,163    )        -                    (421         )
equipment
Return of
capital on            314,340           -                  -            
distributions
received
Net cash
provided by
(used in)            $ 4,824,936       $  (26,646     )      $ (182,342,793 )
investing
activities
Financing
Activities
Payments on            (20,698    )        (19,690     )        (6,824       )
lease obligation
Debt financing         (10,999    )        -                    (1,537,353   )
costs
Net offering           -                   -                    83,508,150
proceeds
Debt issuance          -                   -                    70,000,000
Proceeds from
non-controlling        -                   -                    30,000,000
interest
Dividends              (3,017,583 )        -                    -
Advances on
revolving line         139,397             1,045,000            530,000
of credit
Repayments on
revolving line         -                   -                    (650,000     )
of credit
Dividend              49,141            -                  -            
reinvestment
Net cash
provided by
(used in)            $ (2,860,742 )     $  1,025,310         $ 181,843,973  
financing
activities
Net Change in
Cash and Cash        $ 515,368          $  676,942            $ 3,347,327
Equivalents
Cash and Cash
Equivalents at        17,680,783        2,793,326          14,333,456   
beginning of
period
Cash and Cash
Equivalents at       $ 18,196,151      $  3,470,268         $ 17,680,783   
end of period
                                                              
Supplemental
Disclosure of
Cash Flow
Information
Interest paid        $ 531,318          $  11,665             $ 2,765
Income taxes         $ 3,895,800        $  96,000             $ -
paid
Non-Cash
Investing
Activities
Security
proceeds from
sale in
long-term            $ -                $  -                  $ 23,046,215
investment of
other equity
securities

Contact:

CorEnergy Infrastructure Trust, Inc.
Rachel Stroer, Investor Relations
877-699-CORR (2677)
info@corridortrust.com