CorEnergy Releases Fiscal 2014 Results
KANSAS CITY, Mo.--(BUSINESS WIRE)-- CorEnergy Infrastructure Trust, Inc. (NYSE: CORR) (“CorEnergy” or the “Company”) today announced financial results for the year ended December 31, 2014, and filed its annual report on Form 10-K with the Securities and Exchange Commission.
Recent Highlights and Subsequent Events
- Completed CorEnergy’s second year as a REIT
- Paid dividends of $0.514 in 2014 and anticipating annualized $0.54 per share in 2015
- Announced long-term dividend growth target of 3-5% annually with organic growth and acquisitions
- Invested over $190 million in 2014 to expand and diversify holdings in energy infrastructure
- Acquired two major properties: MoGas Pipeline System and Portland Terminal Facility
- Completed two common stock offerings in 2014 and a Series A Preferred Offering in January 2015
- Pro forma total liquidity of approximately $120 million in cash and available credit line
“CorEnergy achieved substantial growth in 2014 – our second full year as a REIT. We invested over $190 million to expand our footprint in energy infrastructure, adding to our long-term, utility-like cash flows for stockholders and diversifying CorEnergy’s portfolio of real property assets,” said David Schulte, Chief Executive Officer of CorEnergy.
“We are delivering on CorEnergy’s REIT strategy by growing our scale and increasing dividends per share. We continue to meet our goal of 1 to 3% increases in dividends based on existing assets and are announcing a long-term target of anticipated 3 to 5% annual dividend growth with new projects and acquisitions. We see increasing opportunities to provide mission-critical infrastructure that is essential for our customers’ operations in energy production and distribution.”
2014 Annual Performance Review
In 2014, CorEnergy completed strategic transactions to expand and diversify its portfolio of real property assets in energy infrastructure. CorEnergy made two acquisitions in 2014, the MoGas Pipeline System and the Portland Terminal Facility, and executed loan transactions with two operators of salt water disposal wells.
Total assets increased 56% to $443.8 million at December 31, 2014, from $283.9 million at December 31, 2013. CorEnergy reported total revenues of $40.3 million in 2014, an increase of 29% from $31.3 million in 2013. AFFO was $18.6 million or $.56 per share in 2014, up from $12.7 million or $0.52 per share in 2013.
| Fiscal Year Ended December 31, 2014 Financial Summary | ||||||
| For the Fiscal Year Ended December 31, 2014 | ||||||
| Total | Per Share | |||||
| Net Income (attributable to CorEnergy Stockholders) | $7,013,856 | $0.21 | ||||
| NAREIT Funds from Operations (NAREIT FFO) | $18,501,922 | $0.56 | ||||
| Funds From Operations (FFO) | $18,860,620 | $0.57 | ||||
| Adjusted Funds From Operations (AFFO) | $18,610,198 | $0.56 | ||||
NAREIT FFO, 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 (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. FFO as we have presented it here, and historically, also excludes the non-cash portion of unrealized gains and losses related to our legacy BDC securities holdings. 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 other adjustments as deemed appropriate. Management uses AFFO as a measure of long-term sustainable operational performance. A reconciliation of NAREIT FFO, FFO and AFFO, as presented, to Net income attributable to CorEnergy stockholders is included in the additional financial information attached to this press release.
2014 Real Property Update
Pinedale Liquids Gathering System
The Pinedale Liquids Gathering System (LGS) consists of more than 150 miles of pipelines, with 107 receipt points and four central storage facilities, acquired in 2012 and leased to a subsidiary of Ultra Petroleum (guaranteed by Ultra) under a triple-net participating lease with a 15-year initial term. The Pinedale LGS generated $20.3 million in lease revenue in 2014. Under an adjustment tied to changes in the Consumer Price Index, the annual rent will rise by $340,000 for 2015. CorEnergy believes its Pinedale LGS, used by Ultra Petroleum for gathering water, condensate and natural gas from its Pinedale field in Wyoming, is critically necessary to Ultra to support the exploitation of its reserves in the field.
MoGas Pipeline System
In November 2014, CorEnergy acquired all of the membership interests of two entities that own and operate the MoGas Pipeline System, approximately 263 miles of interstate natural gas pipeline in the St. Louis region and extending into central Missouri. CorEnergy also provided REIT-qualifying intercompany mortgage financing. After completion of the transaction, the MoGas system produced $1.3 million in revenue for CorEnergy in 2014.
The MoGas system, which is regulated by the Federal Energy Regulatory Commission (FERC), delivers natural gas to investor-owned and municipal utilities and end-users and has eight firm transportation customers.
Portland Terminal Facility
Acquired in January 2014, the Portland Terminal Facility is a 39-acre rail and marine transloading terminal on the Willamette River in Portland, Oregon. The site has 84 tanks with a total storage capacity of approximately 1.5 million barrels and is capable of receiving, storing and delivering crude oil and refined petroleum products. The property is leased to Arc Terminals (guaranteed by Arc Logistics) under a triple-net lease with a 15-year initial term.
The Portland Terminal Facility generated $5.4 million in lease revenue for CorEnergy in 2014. Under the lease, base rent increases as a percentage of completed construction on planned site improvements. As of December 31, 2014, CorEnergy had invested approximately $6.0 million of the planned $10 million in construction, and the base rent had risen to approximately $471 thousand per month.
Omega Pipeline/Mowood
Omega Pipeline Company owns and operates a natural gas distribution system primarily serving the U.S. Army’s Fort Leonard Wood in south-Central Missouri. In addition, Omega provides natural gas marketing services to several customers in the surrounding area. Omega has a long-term contract with the Department of Defense, which is subject to renewal in 2015. CorEnergy provides REIT-qualifying intercompany mortgage financing to Mowood, a taxable REIT subsidiary of CorEnergy that owns Omega, secured by the 70-mile pipeline system.
In 2014, Mowood and Omega generated $9.7 million in revenue for CorEnergy, up 11% from 2013.
Eastern Interconnect Project
The Eastern Interconnect Project, CorEnergy’s 40% undivided interest in power transmission lines that move electricity across New Mexico, is leased to Public Service Company of New Mexico under a triple-net lease. The lease terminates on April 1, 2015, with the sale of CorEnergy’s interest for $7.7 million. The final lease payments of approximately $2.6 million were received in full on January 2, 2014.
Black Bison Water Services
In 2014, CorEnergy provided $15.3 million in financing to Black Bison Water Services for acquisition of salt water disposal wells and related capital improvements in Wyoming, secured by mortgage agreements. Black Bison has become a leading independent provider of salt water disposal facilities, which help producers manage flowback and produced water from oil and gas wells. The assets produced $1.1 million in 2014 revenue for CorEnergy.
Four Wood/SWD Enterprises
On December 31, 2014, CorEnergy provided $5 million under two separate loan agreements to SWD Enterprises, a subsidiary of Four Wood Energy Partners, to acquire a salt water disposal well in the Bakken Shale Play in North Dakota. The investment is part of an $11 million total commitment, secured by SWD properties and providing for base and contingent interest income for CorEnergy going forward.
Private Equity Securities
In October 2014, CorEnergy sold its equity interest in VantaCore Partners LP to Natural Resource Partners L.P. Sale proceeds were approximately $13 million, of which a portion is held in escrow pending certain post-closing obligations or the expiration of certain time periods.
Subsequent Events
In January 2015, CorEnergy conducted a successful public offering of perpetual Series A Cumulative Redeemable Preferred Stock, which raised over $55 million in gross proceeds, strengthening CorEnergy’s balance sheet by repaying indebtedness under our revolving line of credit and further positioning the Company for growth. The preferred stock trades on the NYSE under the ticker “CORRPrA.”
Balance Sheet and Liquidity
As of December 31, 2014, CorEnergy had approximately $53.0 million available for future investment, including cash and revolving credit facility availability totaling $65.6 million less near-term commitments. Following the offering of preferred stock and repayment of CorEnergy’s revolving line of credit, the pro forma liquidity available for future investment was approximately $120.1 million.
Outlook
CorEnergy expects its portfolio of energy infrastructure assets – the Pinedale LGS, MoGas Pipeline, Portland Terminal, Omega/Mowood and Black Bison – to continue to produce stable, recurring revenues in 2015. Assets acquired or expanded during 2014 (MoGas, Portland, Black Bison and Four Wood/SWD) are expected to produce full-year revenues in 2015. CorEnergy believes the cash flows from its holdings in 2015 will support annualized dividend payments of no less than $0.54 per share.
CorEnergy is pursuing a broadening set of opportunities in the pipeline, which provide the potential to reach $50 to $250 million per project type. There can be no assurance that any of these acquisition opportunities will result in consummated transactions. The Company expects to utilize balance sheet resources, including prudent leverage when available, supplemented with accretive equity issuance as needed.
Dividend Policy
CorEnergy intends to maintain a quarterly dividend payment cycle of February, May, August and November. In February 2015, the Company paid its fourth-quarter 2014 dividend of $0.130 per share. The Company anticipates that it will increase the dividend for the first quarter of 2015 to $0.135 (or $0.54 cents per share annualized). Dividend payouts may be affected by cash flow requirements and remain subject to other risks and uncertainties.
2014 Year-End Earnings Conference Call
CorEnergy will host a conference call Tuesday, March 17, 2015, at 1:00 p.m. Central Time to discuss its financial results. Please dial into the call at 1-877-407-8035 (for international callers, 1-201-689-8035) approximately five to ten minutes prior to the scheduled start time.
The call will also be webcast in a listen-only format, and also for replay afterward, through a link available at corenergy.corridortrust.com.
A replay of the call will be available until 11:59 p.m. on April 17, 2015, by dialing 1-877-660-6853 (for international callers, 1-201-612-7415). The Conference ID # is 13601144.
About CorEnergy Infrastructure Trust, Inc.
CorEnergy, the first publicly listed energy infrastructure Real Estate Investment Trust (REIT), primarily owns assets in the midstream and downstream U.S. energy sectors that perform utility-like functions, such as pipelines, storage terminals, and transmission and distribution assets. Our objective is to provide stockholders with a stable and growing cash dividend, supported by long-term contracted revenue from operators of our assets, primarily under triple-net participating leases. 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 | ||||||||
| December 31, 2014 | December 31, 2013 | |||||||
| Assets | ||||||||
| Leased property, net of accumulated depreciation of $19,417,025 and $9,154,337 | $ | 260,280,029 | $ | 221,694,020 | ||||
| Leased property held for sale, net of accumulated depreciation of $5,878,933 and $3,600,251 | 8,247,916 | $ | 10,526,598 | |||||
| Property and equipment, net of accumulated depreciation of $2,623,020 and $2,037,685 | 122,820,122 | 3,318,483 | ||||||
| Financing notes and related accrued interest receivable, net | 20,687,962 | - | ||||||
| Other equity securities, at fair value | 9,572,181 | 23,304,321 | ||||||
| Cash and cash equivalents | 7,578,164 | 17,963,266 | ||||||
| Escrow receivable | 2,438,500 | - | ||||||
| Accounts receivable | 3,604,198 | 2,068,193 | ||||||
| Lease receivable | 1,499,796 | 711,229 | ||||||
| Intangible lease asset, net of accumulated amortization of $1,021,784 and $729,847 | 72,987 | 364,924 | ||||||
| Deferred debt issuance costs, net of accumulated amortization of $1,124,655 and $572,830 | 3,516,167 | 1,225,524 | ||||||
| Deferred lease costs, net of accumulated amortization of $124,641 and $63,272 | 795,821 | 857,190 | ||||||
| Hedged derivative asset | 351,807 | 680,968 | ||||||
| Income tax receivable | 251,021 | 834,382 | ||||||
| Prepaid expenses and other assets | 380,303 | 326,561 | ||||||
| Goodwill | 1,718,868 | - | ||||||
| Total Assets | $ | 443,815,842 | $ | 283,875,659 | ||||
| Liabilities and Equity | ||||||||
| Current maturities of long-term debt | $ | 3,528,000 | $ | 2,940,000 | ||||
| Long-term debt (net of current maturities) | 63,532,000 | 67,060,000 | ||||||
| Accounts payable and other accrued liabilities | 3,935,307 | 2,224,829 | ||||||
| Management fees payable | 1,164,399 | 695,438 | ||||||
| Deferred tax liability | 1,262,587 | 5,332,087 | ||||||
| Line of credit | 32,141,277 | 81,935 | ||||||
| Unearned revenue | 711,230 | - | ||||||
| Total Liabilities | $ | 106,274,800 | $ | 78,334,289 | ||||
| Equity | ||||||||
|
Warrants, no par value; 0 and 945,594 issued and outstanding at
December |
$ | - | $ | 1,370,700 | ||||
|
Capital stock, non-convertible, $0.001 par value; 46,605,055 and
24,156,163 |
46,605 | 24,156 | ||||||
| Additional paid-in capital | 309,950,440 | 173,441,019 | ||||||
| Accumulated retained earnings | - | 1,580,062 | ||||||
| Accumulated other comprehensive income | 453,302 | 777,403 | ||||||
| Total CorEnergy Equity | 310,450,347 | 177,193,340 | ||||||
| Non-controlling interest | 27,090,695 | 28,348,030 | ||||||
| Total Equity | 337,541,042 | 205,541,370 | ||||||
| Total Liabilities and Equity | $ | 443,815,842 | $ | 283,875,659 | ||||
| CorEnergy Infrastructure Trust, Inc. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME |
For the One-Month |
|||||||||||||||||||
| For the Years Ended | ||||||||||||||||||||
| December 31, 2014 | December 31, 2013 | November 30, 2012 | ||||||||||||||||||
| Revenue | ||||||||||||||||||||
| Lease revenue | $ | 28,223,765 | $ | 22,552,976 | $ | 2,552,975 | $ | 857,909 | ||||||||||||
| Sales revenue | 9,708,902 | 8,733,044 | 8,021,022 | 868,992 | ||||||||||||||||
| Financing revenue | 1,077,813 | - | - | - | ||||||||||||||||
| Transportation revenue | 1,298,093 | - | - | - | ||||||||||||||||
| Total Revenue | 40,308,573 | 31,286,020 | 10,573,997 | 1,726,901 | ||||||||||||||||
| Expenses | ||||||||||||||||||||
| Cost of sales (excluding depreciation expense) | 7,291,968 | 6,734,665 | 6,078,102 | 686,976 | ||||||||||||||||
| Management fees | 3,467,660 | 2,637,265 | 1,046,796 | 155,242 | ||||||||||||||||
| Asset acquisition expenses | 929,188 | 806,083 | 377,834 | 64,733 | ||||||||||||||||
| Professional fees | 2,214,028 | 1,678,137 | 1,141,045 | 333,686 | ||||||||||||||||
| Depreciation expense | 13,133,886 | 11,429,980 | 1,118,269 | 499,357 | ||||||||||||||||
| Amortization expense | 61,369 | 61,305 | - | 1,967 | ||||||||||||||||
| Transportation, maintenance and general and administrative | 458,872 | - | - | - | ||||||||||||||||
| Operating expenses | 840,910 | 924,571 | 739,519 | 48,461 | ||||||||||||||||
| Directors' fees | 270,349 | 178,196 | 85,050 | 8,500 | ||||||||||||||||
| Other expenses | 991,528 | 580,183 | 231,086 | 27,500 | ||||||||||||||||
| Total Expenses | 29,659,758 | 25,030,385 | 10,817,701 | 1,826,422 | ||||||||||||||||
| Operating Income | $ | 10,648,815 | $ | 6,255,635 | $ | (243,704 | ) | $ | (99,521 | ) | ||||||||||
| Other Income (Expense) | ||||||||||||||||||||
| Net distributions and dividend income | $ | 1,836,783 | $ | 584,814 | $ | (279,395 | ) | $ | 2,325 | |||||||||||
| Net realized and unrealized gain on trading securities | - | (251,213 | ) | 4,009,933 | (1,769,058 | ) | ||||||||||||||
| Net realized and unrealized gain (loss) on other equity securities | (466,026 | ) | 5,617,766 | 16,171,944 | (159,495 | ) | ||||||||||||||
| Interest expense | (3,675,122 | ) | (3,288,378 | ) | (81,123 | ) | (416,137 | ) | ||||||||||||
| Total Other Income (Expense) | (2,304,365 | ) | 2,662,989 | 19,821,359 | (2,342,365 | ) | ||||||||||||||
| Income before income taxes | 8,344,450 | 8,918,624 | 19,577,655 | (2,441,886 | ) | |||||||||||||||
| Taxes | ||||||||||||||||||||
| Current tax expense (benefit) | 3,843,937 | 13,474 | 29,265 | 3,855,947 | ||||||||||||||||
| Deferred tax expense | (4,069,500 | ) | 2,936,044 | 7,199,669 | (4,776,090 | ) | ||||||||||||||
| Income tax expense, net | (225,563 | ) | 2,949,518 | 7,228,934 | (920,143 | ) | ||||||||||||||
| Net Income | 8,570,013 | 5,969,106 | 12,348,721 | (1,521,743 | ) | |||||||||||||||
| Less: Net Income attributable to non-controlling interest | 1,556,157 | 1,466,767 | - | (18,347 | ) | |||||||||||||||
| Net Income attributable to CORR Stockholders | $ | 7,013,856 | $ | 4,502,339 | $ | 12,348,721 | $ | (1,503,396 | ) | |||||||||||
| Net income | $ | 8,570,013 | $ | 5,969,106 | $ | 12,348,721 | $ | (1,521,743 | ) | |||||||||||
| Other comprehensive income (expense): | ||||||||||||||||||||
| Changes in fair value of qualifying hedges attributable to CORR Stockholders | (324,101 | ) | 777,403 | - | - | |||||||||||||||
| Changes in fair value of qualifying hedges attributable to non-controlling interest | (75,780 | ) | 181,762 | - | - | |||||||||||||||
| Net Change in Other Comprehensive Income | $ | (399,881 | ) | $ | 959,165 | $ | - | $ | - | |||||||||||
| Total Comprehensive Income | 8,170,132 | 6,928,271 | 12,348,721 | (1,521,743 | ) | |||||||||||||||
| Less: Comprehensive income attributable to non-controlling interest | 1,480,377 | 1,648,529 | - | (18,347 | ) | |||||||||||||||
| Comprehensive Income attributable to CORR Stockholders | $ | 6,689,755 | $ | 5,279,742 | $ | 12,348,721 | $ | (1,503,396 | ) | |||||||||||
| Earnings Per Common Share: | ||||||||||||||||||||
| Basic and Diluted | $ | 0.21 | $ | 0.19 | $ | 1.34 | $ | (0.10 | ) | |||||||||||
| Weighted Average Shares of Common Stock Outstanding: | ||||||||||||||||||||
| Basic and Diluted | 33,028,574 | 24,149,396 | 9,182,425 | 15,564,861 | ||||||||||||||||
| Dividends declared per share | $ | 0.514 | $ | 0.375 | $ | 0.440 | $ | - | ||||||||||||
| CorEnergy Infrastructure Trust, Inc. | |||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF EQUITY | |||||||||||||||||||||||||||||||||||||
|
Accumulated |
Accumulated |
||||||||||||||||||||||||||||||||||||
| Capital Stock |
Additional Paid- |
Non- |
|||||||||||||||||||||||||||||||||||
| Shares | Amount | Warrants | Total | ||||||||||||||||||||||||||||||||||
| Balance at December 31, 2012 | 24,140,667 | $ | 24,141 | $ | 1,370,700 | $ | 175,256,675 | $ | - | $ | 4,209,023 | $ | 29,981,653 | $ | 210,842,192 | ||||||||||||||||||||||
| Net income | - | - | - | - | - | 4,502,339 | 1,466,767 | 5,969,106 | |||||||||||||||||||||||||||||
| Net change in cash flow hedges | - | - | - | - | 777,403 | - | 181,762 | 959,165 | |||||||||||||||||||||||||||||
| Total comprehensive income | - | - | - | - | 777,403 | 4,502,339 | 1,648,529 | 6,928,271 | |||||||||||||||||||||||||||||
| Dividends | - | - | - | (1,923,760 | ) | - | (7,131,300 | ) | - | (9,055,060 | ) | ||||||||||||||||||||||||||
| Distributions to non-controlling interest | - | - | - | - | - | - | (3,282,152 | ) | (3,282,152 | ) | |||||||||||||||||||||||||||
| Reinvestment of dividends paid to stockholders | 15,496 | 15 | - | 108,104 | - | - | - | 108,119 | |||||||||||||||||||||||||||||
| Balance at December 31, 2013 | 24,156,163 | $ | 24,156 | $ | 1,370,700 | $ | 173,441,019 | $ | 777,403 | $ | 1,580,062 | $ | 28,348,030 | $ | 205,541,370 | ||||||||||||||||||||||
| Net income | - | - | - | - | - | 7,013,856 | 1,556,157 | 8,570,013 | |||||||||||||||||||||||||||||
| Net change in cash flow hedges | - | - | - | - | (324,101 | ) | - | (75,780 | ) | (399,881 | ) | ||||||||||||||||||||||||||
| Total comprehensive income | - | - | - | - | (324,101 | ) | 7,013,856 | 1,480,377 | 8,170,132 | ||||||||||||||||||||||||||||
| Net offering proceeds | 22,425,000 | 22,425 | - | 141,702,803 | - | - | - | 141,725,228 | |||||||||||||||||||||||||||||
| Dividends | - | - | - | (6,734,166 | ) | - | (8,593,918 | ) | - | (15,328,084 | ) | ||||||||||||||||||||||||||
| Common stock issued under director's compensation plan | 4,027 | 4 | - | 29,996 | - | - | - | 30,000 | |||||||||||||||||||||||||||||
| Distributions to non-controlling interest | - | - | - | - | - | - | (2,737,712 | ) | (2,737,712 | ) | |||||||||||||||||||||||||||
| Reinvestment of dividends paid to stockholders | 19,865 | 20 | - | 140,088 | - | - | - | 140,108 | |||||||||||||||||||||||||||||
| Warrant expiration | - | - | (1,370,700 | ) | 1,370,700 | - | - | - | - | ||||||||||||||||||||||||||||
| Balance at December 31, 2014 | 46,605,055 | $ | 46,605 | $ | - | $ | 309,950,440 | $ | 453,302 | $ | - | $ | 27,090,695 | $ | 337,541,042 | ||||||||||||||||||||||
| CorEnergy Infrastructure Trust, Inc. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
|
For the One-Month |
||||||||||||||||||||
| For the Years Ended | ||||||||||||||||||||
| December 31, 2014 | December 31, 2013 | November 30, 2012 | ||||||||||||||||||
| Operating Activities | ||||||||||||||||||||
| Net Income | $ | 8,570,013 | $ | 5,969,106 | $ | 12,348,721 | $ | (1,521,743 | ) | |||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||
| Deferred income tax, net | (4,069,500 | ) | 2,936,044 | 7,199,669 | (4,776,090 | ) | ||||||||||||||
| Depreciation | 13,133,886 | 11,429,980 | 1,118,269 | 499,357 | ||||||||||||||||
| Amortization | 1,155,131 | 909,724 | 200,056 | 42,645 | ||||||||||||||||
| Realized and unrealized (gain) loss on trading securities | - | 251,213 | (4,009,933 | ) | 1,769,058 | |||||||||||||||
| Realized and unrealized (gain) loss on other equity securities | (1,357,496 | ) | (5,617,766 | ) | (16,171,944 | ) | 159,495 | |||||||||||||
| Unrealized (gain) loss on derivative contract | (70,720 | ) | (11,095 | ) | - | 316,756 | ||||||||||||||
| Distributions received from investment securities | 960,384 | (567,276 | ) | 4,985,370 | - | |||||||||||||||
| Changes in assets and liabilities: | ||||||||||||||||||||
| (Increase) decrease in accounts receivable | (178,100 | ) | (1,145,299 | ) | (167,302 | ) | 647,363 | |||||||||||||
| (Increase) decrease in lease receivable | (788,567 | ) | (711,229 | ) | 474,152 | - | ||||||||||||||
| (Increase) decrease in prepaid expenses and other assets | 96,743 | 272,194 | (233,272 | ) | (177,521 | ) | ||||||||||||||
| Increase (decrease) in management fee payable | 468,961 | 555,892 | 5,403 | (109,780 | ) | |||||||||||||||
| Increase (decrease) in accounts payable and other accrued liabilities | (2,276,773 | ) | 260,538 | 1,528,541 | 232,225 | |||||||||||||||
| Increase (decrease) in current income tax liability | 583,361 | (4,690,329 | ) | - | 3,922,682 | |||||||||||||||
| Increase (decrease) in unearned revenue | 711,230 | (2,133,685 | ) | 2,370,762 | (237,077 | ) | ||||||||||||||
| Net cash provided by operating activities | $ | 16,938,553 | $ | 7,708,012 | $ | 9,648,492 | $ | 767,370 | ||||||||||||
| Investing Activities | ||||||||||||||||||||
| Proceeds from sale of long-term investment of trading and other equity securities | 10,806,879 | 5,580,985 | 9,983,169 | 26,085,740 | ||||||||||||||||
| Deferred lease costs | - | (74,037 | ) | - | (796,649 | ) | ||||||||||||||
| Acquisition expenditures | (168,204,309 | ) | (1,834,036 | ) | (942,707 | ) | (205,706,823 | ) | ||||||||||||
| Purchases of property and equipment | (11,970 | ) | (40,670 | ) | (30,321 | ) | (421 | ) | ||||||||||||
| Proceeds from sale of property and equipment | 948 | 5,201 | 3,076 | - | ||||||||||||||||
| Issuance of financing note receivable | (20,648,714 | ) | - | - | - | |||||||||||||||
| Return of capital on distributions received | 981,373 | 1,772,776 | - | - | ||||||||||||||||
| Net cash provided by (used in) investing activities | $ | (177,075,793 | ) | $ | 5,410,219 | $ | 9,013,217 | $ | (180,418,153 | ) | ||||||||||
| Financing Activities | ||||||||||||||||||||
| Payments on lease obligation | - | (20,698 | ) | (80,028 | ) | (6,824 | ) | |||||||||||||
| Debt financing costs | (3,269,429 | ) | (144,798 | ) | (1,054,302 | ) | (1,391,846 | ) | ||||||||||||
| Net offering proceeds | 141,797,913 | (523,094 | ) | - | 84,516,780 | |||||||||||||||
| Debt issuance | - | - | - | 70,000,000 | ||||||||||||||||
| Proceeds from non-controlling interest | - | - | - | 30,000,000 | ||||||||||||||||
| Common stock issued under directors compensation plan | 30,000 | - | - | - | ||||||||||||||||
| Dividends paid | (15,187,976 | ) | (8,946,941 | ) | (3,919,249 | ) | - | |||||||||||||
| Distributions to non-controlling interest | (2,737,712 | ) | (3,282,152 | ) | - | - | ||||||||||||||
| Advances on revolving line of credit | 34,676,948 | 221,332 | 5,285,000 | 530,000 | ||||||||||||||||
| Payments on revolving line of credit | (2,617,606 | ) | (139,397 | ) | (5,165,000 | ) | (650,000 | ) | ||||||||||||
| Principal payments on credit facility | (2,940,000 | ) | - | (2,188,000 | ) | - | ||||||||||||||
| Net cash provided by (used in) financing activities | $ | 149,752,138 | $ | (12,835,748 | ) | $ | (7,121,579 | ) | $ | 182,998,110 | ||||||||||
| Net Change in Cash and Cash Equivalents | $ | (10,385,102 | ) | $ | 282,483 | $ | 11,540,130 | $ | 3,347,327 | |||||||||||
| Cash and Cash Equivalents at beginning of period | 17,963,266 | 17,680,783 | 2,793,326 | 14,333,456 | ||||||||||||||||
| Cash and Cash Equivalents at end of period | $ | 7,578,164 | $ | 17,963,266 | $ | 14,333,456 | $ | 17,680,783 | ||||||||||||
| Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||||||
| Interest paid | $ | 2,762,903 | $ | 2,651,355 | $ | 203,611 | $ | 2,765 | ||||||||||||
| Income taxes paid (net of refunds) | $ | 3,260,576 | $ | 4,637,068 | $ | 96,000 | $ | - | ||||||||||||
| Non-Cash Investing Activities | ||||||||||||||||||||
| Security proceeds from sale in long-term investment of other equity securities | $ | - | $ | - | $ | 26,565,400 | $ | 23,046,215 | ||||||||||||
| Reclassification of prepaid expenses and other assets to deferred lease costs | $ | - | $ | - | $ | - | $ | 753,940 | ||||||||||||
| Reclassification of prepaid expenses and other assets to acquisition expenditures | $ | - | $ | - | $ | - | $ | 181,766 | ||||||||||||
| Change in accounts payable and accrued expenses related to deferred lease costs | $ | - | $ | (68,417 | ) | $ | - | $ | (653,747 | ) | ||||||||||
| Change in accounts payable and accrued expenses related to acquisition expenditures | $ | 270,615 | $ | (1,545,163 | ) | $ | - | $ | 1,624,680 | |||||||||||
| Change in accounts payable and accrued expenses related to issuance of financing and other notes receivable | $ | 39,248 | $ | - | $ | - | $ | - | ||||||||||||
| Acquisitions, net of cash acquired: | ||||||||||||||||||||
| Leased property | $ | (48,578,082 | ) | $ | 1,834,036 | $ | 942,707 | $ | (205,706,823 | ) | ||||||||||
| Property and equipment | $ | (120,083,133 | ) | $ | - | $ | - | $ | - | |||||||||||
| Other equity securities | $ | (97,500 | ) | $ | - | $ | - | $ | - | |||||||||||
| Accounts receivable | $ | (1,357,905 | ) | $ | - | $ | - | $ | - | |||||||||||
| Prepaid expenses and other assets | $ | (150,485 | ) | $ | - | $ | - | $ | - | |||||||||||
| Accounts payable | $ | 3,781,664 | $ | - | $ | - | $ | - | ||||||||||||
| Goodwill | $ | (1,718,868 | ) | $ | - | $ | - | $ | - | |||||||||||
| Total acquisitions, net of cash acquired | $ | (168,204,309 | ) | $ | 1,834,036 | $ | 942,707 | $ | (205,706,823 | ) | ||||||||||
| Non-Cash Financing Activities | ||||||||||||||||||||
| Reclassification of prepaid expenses and other assets to issuance of equity | $ | - | $ | - | $ | - | $ | 617,308 | ||||||||||||
| Reclassification of prepaid expenses and other assets to debt financing costs | $ | - | $ | - | $ | - | $ | 436,994 | ||||||||||||
| Change in accounts payable and accrued expenses related to the issuance of equity | $ | 72,685 | $ | (523,094 | ) | $ | - | $ | 391,322 | |||||||||||
| Change in accounts payable and accrued expenses related to debt financing costs | $ | (176,961 | ) | $ | 116,383 | $ | - | $ | (291,667 | ) | ||||||||||
| Reinvestment of distributions by common stockholders in additional common shares | $ | 140,108 | $ | 108,119 | $ | 121,024 | $ | - | ||||||||||||
| CorEnergy Infrastructure Trust, Inc. | |||||||||||||||
| NON-GAAP FINANCIAL MEASURES RECONCILIATION | |||||||||||||||
| NAREIT FFO, FFO and AFFO Reconciliation | |||||||||||||||
| For the Years Ended |
Pro Forma for the |
||||||||||||||
| December 31, 2014 | December 31, 2013 | ||||||||||||||
| Net Income (attributable to CorEnergy Stockholders): | $ | 7,013,856 | $ | 4,502,339 | $ | 13,389,963 | |||||||||
| Add: | |||||||||||||||
| Depreciation | 13,133,886 | 11,429,980 | 16,098,377 | ||||||||||||
| Less: | |||||||||||||||
|
Non-Controlling Interest attributable to NAREIT FFO reconciling items |
1,645,820 | 1,645,601 | 1,645,820 | ||||||||||||
| NAREIT Funds from operations (NAREIT FFO): | 18,501,922 | 14,286,718 | 27,842,520 | ||||||||||||
| Add: | |||||||||||||||
| Distributions received from investment securities | 1,941,757 | 1,789,893 | 883,425 | ||||||||||||
| Income tax expense, net | (225,563 | ) | 2,949,518 | (982,217 | ) | ||||||||||
| Less: | |||||||||||||||
| Net distributions and dividend income | 1,823,522 | 567,276 | 670,796 | ||||||||||||
| Net realized and unrealized gain on trading securities | - | (251,213 | ) | - | |||||||||||
| Net realized and unrealized gain (loss) on other equity securities | (466,026 | ) | 5,617,766 | (841,430 | ) | ||||||||||
| Funds from operations adjusted for securities investments (FFO): | $ | 18,860,620 | $ | 13,092,300 | $ | 27,914,362 | |||||||||
| Add: | |||||||||||||||
| Transaction costs | 929,188 | 806,083 | 929,188 | ||||||||||||
| Amortization of debt issuance costs | 801,825 | 556,300 | 1,376,249 | ||||||||||||
| Amortization of deferred lease costs | 61,369 | 61,305 | 61,369 | ||||||||||||
| Amortization of above market leases | 291,937 | 291,940 | 291,937 | ||||||||||||
| Noncash costs associated with derivative instruments | (70,720 | ) | 40,290 | (70,720 | ) | ||||||||||
| Nonrecurring personnel costs | - | 113,232 | - | ||||||||||||
| Less: | |||||||||||||||
| EIP lease adjustment | 2,171,236 | 2,171,236 | 2,171,236 | ||||||||||||
| Non-controlling interest attributable to AFFO reconciling items | 92,785 | 121,436 | 92,785 | ||||||||||||
| Adjusted funds from operations (AFFO): | $ | 18,610,198 | $ | 12,668,778 | $ | 28,238,364 | |||||||||
| Weighted Average Shares | 33,028,574 | 24,149,396 | 46,605,055 | ||||||||||||
| NAREIT FFO per share | $ | 0.56 | $ | 0.59 | $ | 0.60 | |||||||||
| FFO adjusted for securities investments (FFO) per share | $ | 0.57 | $ | 0.54 | $ | 0.60 | |||||||||
| AFFO per share | $ | 0.56 | $ | 0.52 | $ | 0.61 | |||||||||
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Debbie
Hagen, 877-699-CORR (2677)
info@corridortrust.com
Source: CorEnergy Infrastructure Trust, Inc.
Released March 16, 2015