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CorEnergy Releases Third Quarter 2013 Financial Results



  CorEnergy Releases Third Quarter 2013 Financial Results

Business Wire

LEAWOOD, Kan. -- November 12, 2013

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR) (“the Company”) today
announced financial results for the third quarter ended September 30, 2013.

Third Quarter Highlights and Subsequent Events

  * Declared third quarter dividend of $0.125 per share, paid on October 4,
    2013
  * Reiterated expectation for annualized dividend payments of no less than
    $0.50 per share
  * Successful IPO from legacy private company, Lightfoot’s Arc Logistics
    Partners LP (NYSE: ARCX)
  * Maintained stable revenue stream from the Pinedale LGS for third
    consecutive quarter
  * Continued to meet asset requirements for Real Estate Investment Trust
    (REIT) status

Quarterly Performance Review

CorEnergy reported total revenues of $7.6 million in the quarter ended
September 30, 2013. A third quarter dividend of $0.125 was declared on
September 18, 2013 and paid on October 4, 2013. Total assets were $284.4
million and total stockholders’ equity was $204.2 million as of September 30,
2013, compared to $288.7 million and $207.5 million, respectively, at June 30,
2013. The modest decrease in total assets is primarily due to the second
quarter dividend payment made in July. The decrease in stockholders’ equity is
primarily due to the timing of the third quarter dividend payment. Net income
attributable to common stockholders was $439 thousand, or $0.02 per common
share.

“CorEnergy delivered another quarter of consistent performance across our
business – stable revenues, sustained dividend distributions and strong
operating fundamentals,” said David Schulte, Chief Executive Officer of
CorEnergy. “As our strategy takes hold, we continue to make progress with
asset operators and other potential partners. With a large and growing
opportunity set, a disciplined investment philosophy and a cohesive management
team, we remain focused on our strategy of building a diverse portfolio of
energy infrastructure assets.”

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.

Third Quarter Ended September 30, 2013 Financial Summary
                                   For the Three Month Period Ended September
                                   30, 2013
                                   Total                        Per Share
Net Income (attributable to        $ 439,452                    $0.020
CorEnergy Stockholders)
Funds From Operations (FFO)        $3,062,274                   $0.130
Adjusted Funds From Operations     $3,336,584                   $0.140
(AFFO)
Dividends Paid to Stockholders     $3,018,990                   $0.125
(on October 4, 2013)
                                                           

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. FFO represents net income (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, above market rent, and certain
costs of a nonrecurring nature, less maintenance, capital expenditures (if
any), amortization of debt premium and adjustments to lease revenue resulting
from the EIP sale. 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, our largest acquisition of REIT-qualifying assets to date,
is subject to a 15-year triple net participating lease with Ultra Petroleum
(“UPL”). 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 the remaining 18.95 percent of economic
interest.

As of September 30, 2013, approximately 94 percent of the Company's leased
property, based on the gross book value of real estate investments, was leased
to UPL. Approximately 88.7 percent of the Company's total lease revenue for
the third quarter of 2013 was derived from UPL.

On October 21, 2013, Ultra Petroleum entered into a definitive purchase and
sale agreement to acquire oil-producing properties located in the Uinta Basin
in northeast Utah for $650.0 million. During its third quarter earnings call
UPL indicated the potential to operate 2.5-4 rigs in 2014.

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 a net operating lease.

Approximately 11.3 percent of the Company's total lease revenue for the third
quarter of 2013 was derived from PNM. As of September 30, 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 Capital Partners LP (“Lightfoot”) as of September
30, 2013, decreased approximately $27 thousand or 0.3 percent, as compared to
the valuation at June 30, 2013, primarily due to market value changes in the
MLP comparable companies.

On November 5, 2013, Arc Logistics Partners LP (“Arc Logistics”), formed as a
successor to the business and assets of Lightfoot’s Arc Terminals LP, priced
its initial public offering. CorEnergy will maintain its pro rata share of
ownership in Lightfoot and its indirect ownership of Arc Logistics in the form
of common units and subordinated common units. CorEnergy expects to receive
dividend distributions from Lightfoot beginning in 2014.

The fair value of VantaCore as of September 30, 2013, increased $956 thousand,
or 8.2 percent, as compared to the fair value at June 30, 2013. The increase
is attributable to a debt repayment of approximately $3 million and changes in
VantaCore’s EBITDA which compared more favorably with selected public
companies, increasing the multiples used to value VantaCore.

Mowood, LLC is the holding company of Omega Pipeline Company, LLC (“Omega”).
Omega’s sales revenue performance is higher year-to-date, which is largely
attributable to an increase in sales volume due to overall cooler temperatures
for the first half of 2013 as compared to the first half of 2012. Due to the
seasonal nature of gas sales, operating results for interim periods are not
necessarily indicative of the results that may be expected for the full year.

REIT Qualification

CorEnergy satisfied the quarterly REIT asset test for the quarter ended
September 30, 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 CorEnergy assets do not qualify as REIT assets
and do not produce REIT-qualifying income, the Company contributed those
assets into wholly-owned taxable REIT subsidiaries prior to 2013.

Outlook

CorEnergy expects its major energy infrastructure assets, the Pinedale LGS and
the Eastern Interconnect Project, to produce stable and recurring revenues for
the remainder of 2013. The Company believes that the cash flows from its
holdings will continue to support the 2013 annualized dividend payments of no
less than $0.50 per share. A number of possible acquisitions ranging in value
from $50 to $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 has a $20 million revolving credit
facility in place, which can be utilized for future acquisitions. As of
September 30, 2013, there were no outstanding borrowings against the facility.

2013 Third Quarter Earnings Conference Call

CorEnergy will host a conference call Wednesday, November 13, 2013, at 1:00
p.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 December 13, 2013,
by dialing 877-660-6853. The Conference ID # is 13572660. A replay of the
webcast will also be available on the company’s website at
corenergy.corridortrust.com through November 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 real assets,
and is an affiliate of Tortoise Capital Advisors, L.L.C., an investment
manager specializing in listed energy investments, with approximately $13.1
billion of assets under management in NYSE-listed closed-end investment
companies, open-end funds and other accounts as of September 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
                                                              
                                      September 30, 2013     November 30, 2012
Assets                                (Unaudited)
Leased property, net of
accumulated depreciation of           $    234,763,415       $   12,995,169
$9,967,558, and $1,131,680,
respectively
Other equity securities, at fair           22,168,268            19,866,621
value
Cash and cash equivalents                  18,918,718            14,333,456
Trading securities, at fair value          -                     55,219,411
Property and equipment, net of
accumulated depreciation of                3,389,401             3,589,022
$1,966,766 and $1,751,202,
respectively
Escrow receivable                          -                     698,729
Accounts receivable                        1,142,898             1,570,257
Intangible lease asset, net of
accumulated amortization of                437,908               681,191
$656,863 and $413,580,
respectively
Deferred debt issuance costs, net
of accumulated amortization of             1,146,411             -
$401,942 and $0, respectively
Deferred lease costs, net of
accumulated amortization of                872,533               -
$47,930 and $0, respectively
Hedged derivative asset                    516,305               -
Current tax asset                          770,763               -
Prepaid expenses and other assets          268,040               2,477,977
Total Assets                          $    284,394,660       $   111,431,833
                                                              
Liabilities and Equity
Long-term debt                        $    70,000,000        $   -
Accounts payable and other                 2,574,541             2,885,631
accrued liabilities
Dividends payable to shareholders          3,018,990             -
Lease obligation                           -                     27,522
Deferred tax liability                     4,576,499             7,172,133
Line of credit                             -                     120,000
Unearned revenue                           -                     2,370,762
Total Liabilities                     $    80,170,030        $   12,576,048
                                                              
Equity
Warrants, no par value; 945,594
issued and outstanding at
September 30, 2013                    $    1,370,700         $   1,370,700
and November 30, 2012 (5,000,000
authorized)
Capital stock, non-convertible,
$0.001 par value; 24,151,870
shares issued and
outstanding at September 30, 2013          24,152                9,191
and 9,190,667 shares issued and
outstanding
at November 30, 2012 (100,000,000
shares authorized)
Additional paid-in capital                 173,411,657           91,763,475
Accumulated retained earnings              -                     5,712,419
Accumulated other comprehensive            658,470               -
income
Total CorEnergy Equity                     175,464,979           98,855,785
Non-controlling Interest                   28,759,651            -
Total Equity                               204,224,630           98,855,785
Total Liabilities and Equity          $    284,394,660       $   111,431,833
                                                              

                                                                           
CorEnergy
Infrastructure
Trust, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                                                                             
                    For the Three Months Ended           For the Nine Months Ended
                    September 30,      August 31,        September 30,      August 31,
                    2013               2012              2013               2012
Revenue
Lease revenue       $ 5,638,244        $ 638,244         $ 16,914,732       $ 1,914,732
Sales revenue         1,935,868          1,927,626         6,381,213          5,804,894   
Total Revenue         7,574,112          2,565,870         23,295,945         7,719,626   
                                                                             
Expenses
Cost of sales
(excluding            1,411,318          1,381,161         4,891,305          4,416,947
depreciation
expense)
Management
fees, net of          647,380            298,051           1,937,588          800,397
expense
reimbursements
Asset
acquisition           640,302            144,270           725,513            238,969
expenses
Professional          305,326            419,340           1,191,017          796,853
fees
Depreciation          2,857,412          246,804           8,571,860          740,437
expense
Amortization          15,342             -                 45,963             -
expense
Operating             204,446            196,644           714,830            558,450
expenses
Directors' fees       74,437             28,739            124,994            58,050
Other expenses        129,748            47,114            403,766            182,776     
Total Expenses        6,285,711          2,762,123         18,606,836         7,792,879   
Operating             1,288,401          (196,253  )       4,689,109          (73,253    )
Income (Loss)
Other Income
(Expense)
Net
distributions       $ 568,332          $ (502,176  )     $ 584,157          $ (361,452   )
and dividend
income
Net realized
and unrealized
gain (loss) on        (567,276   )       5,935,768         (251,213   )       5,197,958
trading
securities
Net realized
and unrealized
gain (loss) on        1,439,296          2,556,734         3,834,306          15,463,335
other equity
securities
Interest              (818,134   )       (16,780   )       (2,462,790 )       (69,418    )
Expense
Total Other
Income                622,218            7,973,546         1,704,460          20,230,423  
(Expense)
Income before         1,910,619          7,777,293         6,393,569          20,157,170  
income taxes
Taxes
Current tax
expense               (680,281   )       19,265            187,367            29,265
(benefit)
Deferred tax          1,785,406          2,769,520         2,180,456          7,415,596   
expense
Income tax            1,105,125          2,788,785         2,367,823          7,444,861   
expense, net
Net Income            805,494            4,988,508         4,025,746          12,712,309
Less: Net
Income
attributable to       366,042            -                 1,103,469          -           
non-controlling
interest
Net Income
attributable to     $ 439,452          $ 4,988,508       $ 2,922,277        $ 12,712,309  
CORR
Stockholders
Net income          $ 805,494          $ 4,988,508       $ 4,025,746        $ 12,712,309
Other
comprehensive
income
Changes in fair
value of
qualifying
hedges                (262,972   )       -                 658,470            -
attributable to
CORR
Stockholders
Changes in fair
value of
qualifying
hedges                (61,485    )       -                 153,954            -           
attributable to
non-controlling
interest
Net Change in
Other               $ (324,457   )     $ -               $ 812,424          $ -           
Comprehensive
Income
Total
Comprehensive         481,037            4,988,508         4,838,170          12,712,309
Income
Less:
Comprehensive
income                304,557            -                 1,257,423          -           
attributable to
non-controlling
interest
Comprehensive
Income (Loss)
attributable to     $ 176,480          $ 4,988,508       $ 3,580,747        $ 12,712,309  
CORR
Stockholders
Earnings Per
Common Share:
Basic and           $ 0.02             $ 0.54            $ 0.12             $ 1.38
Diluted
Weighted
Average Shares
of Common Stock
Outstanding:
Basic and             24,151,700         9,182,699         24,147,163         9,180,776
Diluted
Dividends
declared per        $ 0.125            $ 0.110           $ 0.375            $ 0.330
share
                                                                                          

                                                                                                                                             
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF EQUITY
                                                                                                         
                                                                Additional          Accumulated         Retained           Non-
                    Capital Stock                               Paid-               Other               Earnings           Controlling     
                                                                                    Comprehensive       (Accumulated
                    Shares         Amount       Warrants        in Capital          Income              Deficit)           Interest           Total
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          -                -            -               -                     -                 2,922,277          1,103,469          4,025,746
Dividends           -                -            -               (1,923,762  )         -                 (7,131,300 )       -                  (9,055,062  )
Distributions
to                  -                -            -               -                     -                 -                  (2,479,425 )       (2,479,425  )
non-controlling
interest
Reinvestment of
dividends paid      11,203           11           -               78,744                -                 -                  -                  78,755
to stockholders
Net change in
cash flow           -                -            -               -                     658,470           -                  153,954            812,424      
hedges
Balance at
September 30,       24,151,870     $ 24,152     $ 1,370,700     $ 173,411,657       $   658,470         $ -                $ 28,759,651       $ 204,224,630  
2013
(Unaudited)
                                                                                                                                               

                                                              
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
                                                                
                                        For the Nine Months Ended
                                        September 30, 2013     August 31, 2012
Operating Activities
Net Income                              $   4,025,746          $ 12,712,309
Adjustments to reconcile net income
to net cash provided by operating
activities:
Distributions received from                 (567,276    )        3,685,593
investment securities
Deferred income tax, net                    2,180,456            7,415,596
Depreciation                                8,571,860            740,437
Amortization                                650,330              132,934
Realized and unrealized (gain) loss         251,213              (5,197,958  )
on trading securities
Realized and unrealized gain on             (3,834,306  )        (15,463,335 )
other equity securities
Changes in assets and liabilities:
(Increase) decrease in accounts             (220,004    )        402,204
receivable
Increase in lease receivable                -                    (711,229    )
(Increase) decrease in prepaid              330,715              (1,418,941  )
expenses and other assets
Increase (decrease) in accounts
payable and other accrued                   (1,571,999  )        535,745
liabilities
Net change in derivative contracts,         64,123               -
not designated as hedges
Decrease in current tax liability           (4,626,710  )        -
Decrease in unearned income                 (2,133,685  )        -            
Net cash provided by operating          $   3,120,463          $ 2,833,355    
activities
                                                                
Investing Activities
Proceeds from sale of long-term
investment of trading and other             5,563,865            9,354,272
equity securities
Deferred lease costs                        (5,620      )        -
Acqusition expenditures                     (37,696     )        -
Purchases of property and equipment         (42,242     )        (30,321     )
Proceeds from sale of property and          -                    3,076
equipment
Return of capital on distributions          1,142,488            -            
received
Net cash provided by investing          $   6,620,795          $ 9,327,027    
activities
                                                                
Financing Activities
Payments on lease obligation                (20,698     )        (59,702     )
Debt financing costs                        (10,999     )        -
Net change in derivative contracts,         (34,884     )        -
designated as hedges
Dividends paid                              (6,036,072  )        (1,952,477  )
Distributions to non-controlling            (2,479,425  )        -
interest
Advances on revolving line of credit        139,397              2,585,000
Payments on revolving line of credit        (139,397    )        (2,460,000  )
Payments on long-term debt                  -                    (1,283,000  )
Dividend reinvestment                       78,755               -            
Net cash used in financing              $   (8,503,323  )      $ (3,170,179  )
activities
Net Change in Cash and Cash             $   1,237,935          $ 8,990,203
Equivalents
Cash and Cash Equivalents at                17,680,783           2,793,326    
beginning of period
Cash and Cash Equivalents at end of     $   18,918,718         $ 11,783,529   
period
                                                                
Supplemental Disclosure of Cash Flow
Information
Interest paid                           $   1,948,486          $ 155,450
Income taxes paid                       $   4,781,617          $ 96,000
Non-Cash Investing Activities
Security proceeds from sale in
long-term investment of other equity    $   -                  $ 26,565,400
securities
Non-Cash Financing Activities
Reinvestment of distributions by
common stockholders in additional       $   78,755             $ 66,884
common shares
                                                                

Contact:

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