Exhibit 99.1
 
 
­CorEnergy Releases Second Quarter 2014 Results

FOR IMMEDIATE RELEASE

KANSAS CITY, Mo. – August 11, 2014 – CorEnergy Infrastructure Trust, Inc. (NYSE: CORR) ("CorEnergy" or the "Company") today announced financial results for the second quarter ended June 30, 2014.

Second Quarter Highlights and Subsequent Events

-
Declared second quarter 2014 dividend distribution of $0.130, payable on August 29, 2014
-
Reiterating annualized dividend guidance of no less than $0.52 per share
-
Joined the Russell 2000, Russell 3000, Russell Microcap and Russell Global Indexes
-
Amended and upsized the Black Bison secured financing transaction
-
Entered into a non-binding term sheet to upsize and replace existing credit facility

"Second quarter results reflect CorEnergy's commitment to providing stable dividends, executing our strategy consistently and expanding partnerships with operating companies. We covered our $0.130 dividend with AFFO, while maintaining a low level of total debt," said David Schulte, Chief Executive Officer of CorEnergy. "We are gaining visibility in the equity capital markets, including recent listings in the Russell and FTSE NAREIT indices. For the second half of the year, we have already closed a follow-on water disposal well acquisition financing and remain active in reviewing potential acquisitions."

Quarterly Performance Review

CorEnergy reported total revenues of $9.0 million in the quarter ended June 30, 2014. A second quarter dividend of $0.130 was declared on July 31, 2014, and is payable on August 29, 2014. Total assets were $327.8 million and total stockholders' equity was $220.5 million as of June 30, 2014, compared to $283.9 million and $177.2 million, respectively, at Dec. 31, 2013. AFFO for the quarter ended June 30, 2014, was $0.14 per share as compared to $0.14 per share for the quarter ended March 31, 2014.

Second Quarter Ended June 30, 2014 Financial Summary
 
 
 
For the Three-Month Period Ended June 30, 2014
 
Total
 
Per Share
Net Income (attributable to CorEnergy Stockholders)
$3,005,908
 
$0.10
Funds From Operations (FFO)
$4,799,701
 
$0.15
Adjusted Funds From Operations (AFFO)
$4,470,169
 
$0.14
 
 
 
 

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 other adjustments as deemed appropriate. Management uses AFFO as a measure of long-term sustainable operational performance.






Portfolio Update

Portland Terminal Facility
The Portland Terminal Facility, a multimodal petroleum products terminal in Oregon, is subject to a 15-year triple net participating lease. Beginning in August 2014, minimum lease payments will be $5 million per year. The base rent is expected to increase during the initial year of the lease based on a percentage of specified construction costs at the Portland Terminal Facility, estimated at $10 million. Assuming such improvements are completed, the base rent will increase by an ancillary amount of approximately $1.1 million per year in addition to the minimum lease payment of $5 million. As of June 30, 2014, additional spending on terminal-related projects totaled approximately $2.8 million.

Subsequent Events

Black Bison
On July 23, 2014, CorEnergy increased its secured financing to Black Bison Water Services, LLC ("Black Bison") from $11.5 million to $15.3 million. The incremental borrowings were made available through an upsize of the pre-existing facility from $11.5 million to $12 million and a new $3.3 million taxable REIT subsidiary loan (the "TRS Loan").

Collectively, the $15.3 million 10-year secured financing has a base interest rate of 12 percent per annum, escalating at 2 percent of the base interest rate per annum. In addition, beginning in April 2015, the outstanding principal on the TRS Loan will also bear variable interest based on the volume of water treated by Black Bison. Interest income on the TRS Loan will be subject to income taxes. CorEnergy has advanced the full $15.3 million to fund Black Bison's third acquisition of a salt water disposal property.

Balance Sheet and Liquidity

The Company has signed a non-binding term sheet for a new credit facility that will replace the Company's current credit facility. The new credit facility has anticipated capacity of up to $30 million. Management expects to complete this additional financing in the third quarter and anticipates using the credit facility thereafter to fund property acquisitions, capital improvements or for other permitted corporate purposes. Management expects that the Portland Terminal Facility will qualify as eligible collateral under the facility. Management believes the increased availability of additional senior debt will allow for greater financial flexibility.

Securing the new credit facility is subject to a number of usual and customary conditions and processes, for which the signed term sheet is just the first step. Those conditions include, among other things, lender due diligence, agreement on definitive terms and final documents, and the negotiation of acceptable fee arrangements. Additional details regarding the anticipated debt financing for the Company will be available on Form 8-K to be filed with the Securities and Exchange Commission upon closing.

­­Outlook

CorEnergy expects its energy infrastructure assets – the Pinedale LGS, the Eastern Interconnect Project, the Portland Terminal Facility, Mowood and Black Bison – to produce stable and recurring revenues in 2014. The Company believes that the cash flows from its holdings will support annualized dividend payments of no less than $0.52 per share. The Company has a broadening set of opportunities in the pipeline, which provide the potential to reach $50 to $200 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

In 2013, CorEnergy changed its fiscal year end from Nov. 30 to Dec. 31 as part of its transition from a business development company to a REIT. As a result of this change, the dividend payment schedule for calendar 2014 will vary from prior years. Going forward, the Company intends to maintain a quarterly February, May, August, November dividend payment cycle. Dividend payouts may be affected by cash flow requirements and remain subject to other risks and uncertainties.





2014 Second Quarter Earnings Conference Call

CorEnergy will host a conference call Tuesday, August 12, 2014, at 1:00 p.m. Central Time 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. Central Time September 12, 2014, by dialing 877-660-6853. The Conference ID # is 13587198. A replay of the webcast will also be available on the company's website at corenergy.corridortrust.com through August 12, 2015.

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 growth (reported to our investors on Form 1099). 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 $17.9 billion of assets under management in NYSE-listed closed-end investment companies, open-end funds and other accounts as of July 31, 2014. 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

   
June 30, 2014
   
December 31, 2013
 
Assets
 
(Unaudited)
       
Leased property, net of accumulated depreciation of $18,949,516, and $12,754,588
  $ 270,189,704     $ 232,220,618  
Other equity securities, at fair value
    25,786,785       23,304,321  
Financing note and related accrued interest receivable, net
    4,299,356       -  
Cash and cash equivalents
    18,986,616       17,963,266  
Property and equipment, net of accumulated depreciation of $2,179,305 and $2,037,685
    3,176,863       3,318,483  
Lease receivable
    1,099,264       711,229  
Accounts receivable
    1,116,161       2,068,193  
Intangible lease asset, net of accumulated amortization of $875,816 and $729,847
    218,955       364,924  
Deferred debt issuance costs, net of accumulated amortization of $862,512 and $572,830
    935,842       1,225,524  
                 
Deferred lease costs, net of accumulated amortization of $93,955 and $63,272
    826,507       857,190  
Hedged derivative asset
    294,607       680,968  
Income tax receivable
    412,495       834,382  
Prepaid expenses and other assets
    483,614       326,561  
Total Assets
  $ 327,826,769     $ 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)
    65,296,000       67,060,000  
Accounts payable and other accrued liabilities
    2,961,460       2,920,267  
Unearned revenue
    2,133,686       -  
Deferred tax liability
    5,734,405       5,332,087  
Line of credit
    -       81,935  
Total Liabilities
  $ 79,653,551     $ 78,334,289  
                 
Equity
               
Warrants, no par value; 0 and 945,594 issued and outstanding at June 30, 2014 and December 31, 2013, respectively (5,000,000 authorized)
  $ -     $ 1,370,700  
Capital stock, non-convertible, $0.001 par value; 31,640,158 shares issued and outstanding at June 30, 2014 and 24,156,163 shares issued and outstanding at December 31, 2013 (100,000,000 shares authorized)
    31,640       24,156  
Additional paid-in capital
    220,080,751       173,441,019  
Accumulated retained earnings
    -       1,580,062  
Accumulated other comprehensive income
    435,945       777,403  
Total CorEnergy Equity
    220,548,336       177,193,340  
Non-controlling Interest
    27,624,882       28,348,030  
Total Equity
    248,173,218       205,541,370  
Total Liabilities and Equity
  $ 327,826,769     $ 283,875,659  



CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

   
For the Three Months Ended
   
For the Six Months Ended
 
   
June 30, 2014
   
June 30, 2013
   
June 30, 2014
   
June 30, 2013
 
Revenue
                       
Lease revenue
  $ 7,065,677     $ 5,638,244     $ 13,828,085     $ 11,276,488  
Sales revenue
    1,813,607       1,929,772       5,073,137       4,445,345  
Financing revenue
    139,728       -       165,347       -  
Total Revenue
    9,019,012       7,568,016       19,066,569       15,721,833  
                                 
Expenses
                               
Cost of sales (excluding depreciation expense)
    1,384,998       1,476,348       4,092,356       3,479,987  
Management fees
    761,265       646,394       1,545,133       1,290,208  
Asset acquisition expenses
    20,732       53,394       36,949       85,211  
Professional fees
    265,514       431,508       664,642       885,691  
Depreciation expense
    3,204,911       2,857,412       6,336,548       5,714,448  
Amortization expense
    15,342       15,342       30,683       30,621  
Operating expenses
    213,533       303,480       436,274       510,384  
Directors' fees
    63,276       32,557       128,310       50,557  
Other expenses
    224,173       151,312       392,881       274,018  
Total Expenses
    6,153,744       5,967,747       13,663,776       12,321,125  
Operating Income
    2,865,268       1,600,269       5,402,793       3,400,708  
Other Income (Expense)
                               
Net distributions and dividend income
  $ 5,988     $ 2,701     $ 11,044     $ 15,825  
Net realized and unrealized gain on trading securities
    -       -       -       316,063  
Net realized and unrealized gain on other equity securities
    2,084,026       (30,976 )     3,378,208       2,395,010  
Interest Expense
    (819,360 )     (907,275 )     (1,646,337 )     (1,644,656 )
Total Other Income
    1,270,654       (935,550 )     1,742,915       1,082,242  
Income before income taxes
    4,135,922       664,719       7,145,708       4,482,950  
Taxes
                               
Current tax expense
    -       581,757       854,075       867,648  
Deferred tax expense (benefit)
    742,879       (340,003 )     402,317       395,050  
Income tax expense, net
    742,879       241,754       1,256,392       1,262,698  
Net Income
    3,393,043       422,965       5,889,316       3,220,252  
Less: Net Income attributable to non-controlling interest
    387,135       352,893       778,249       737,427  
Net Income attributable to CORR Stockholders
  $ 3,005,908     $ 70,072     $ 5,111,067     $ 2,482,825  
                                 
Net income
  $ 3,393,043     $ 422,965     $ 5,889,316     $ 3,220,252  
Other comprehensive income (expense)
                               
Changes in fair value of qualifying hedges attributable to CORR Stockholders
    (270,838 )     921,442       (341,458 )     921,442  
Changes in fair value of qualifying hedges attributable to non-controlling interest
    (63,324 )     215,439       (79,835 )     215,439  
Net Change in Other Comprehensive Income
  $ (334,162 )   $ 1,136,881     $ (421,293 )   $ 1,136,881  
Total Comprehensive Income
    3,058,881       1,559,846       5,468,023       4,357,133  
Less: Comprehensive income attributable to non-controlling interest
    323,811       568,332       698,414       952,866  
                                 
Comprehensive Income attributable to CORR Stockholders
  $ 2,735,070     $ 991,514     $ 4,769,609     $ 3,404,267  
                                 
Earnings Per Common Share:
                               
Basic and Diluted
  $ 0.10     $ -     $ 0.17     $ 0.10  
Weighted Average Shares of Common Stock Outstanding:
                               
Basic and Diluted
    31,637,568       24,147,958       30,810,060       24,144,856  
Dividends declared per share
  $ 0.129     $ 0.125     $ 0.254     $ 0.250  



CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF EQUITY

                           
Accumulated
   
Retained
             
                           
Other
   
Earnings
   
Non-
       
   
Capital Stock
         
Additional Paid-
   
Comprehensive
   
(Accumulated
   
Controlling
       
   
Shares
   
Amount
   
Warrants
   
in Capital
   
Income
   
Deficit)
   
Interest
   
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
    -       -       -       -       -       5,111,067       778,249       5,889,316  
                                                                 
Net change in cash flow hedges
    -       -       -       -       (341,458 )     -       (79,835 )     (421,293 )
                                                                 
Total comprehensive income
    -       -       -       -       (341,458 )     5,111,067       698,414       5,468,023  
                                                                 
Net offering proceeds
    7,475,000       7,475       -       45,617,088       -       -       -       45,624,563  
                                                                 
Dividends
    -       -       -       (409,376 )     -       (6,691,129 )     -       (7,100,505 )
Distributions to non-controlling interest
    -       -       -       -       -       -       (1,421,562 )     (1,421,562 )
Reinvestment of dividends paid to stockholders
    8,995       9       -       61,320       -       -       -       61,329  
                                                                 
Warrant expiration
    -       -       (1,370,700 )     1,370,700       -       -       -       -  
Balance at June 30, 2014 (Unaudited)
    31,640,158     $ 31,640     $ -     $ 220,080,751     $ 435,945     $ -     $ 27,624,882     $ 248,173,218  



CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

   
For the Six Months Ended
 
   
June 30, 2014
   
June 30, 2013
 
Operating Activities
           
Net Income
  $ 5,889,316     $ 3,220,252  
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
               
Deferred income tax, net
    402,318       395,050  
Depreciation
    6,336,548       5,714,448  
Amortization
    466,334       433,386  
Realized and unrealized gain on trading securities
    -       (316,063 )
Realized and unrealized gain on other equity securities
    (3,378,208 )     (2,395,010 )
Unrealized (gain) loss on derivative contract
    (34,932 )     46,228  
Changes in assets and liabilities:
               
(Increase) decrease in accounts receivable
    952,032       (352,037 )
(Increase) in lease receivable
    (388,035 )     -  
(Increase) decrease in prepaid expenses and other assets
    (94,053 )     31,321  
Decrease in accounts payable and other accrued liabilities
    (366,777 )     (1,217,791 )
Increase in dividends payable to shareholders
    -       3,018,495  
Increase in distributions payable to non-controlling interest
    -       1,690,413  
Increase (decrease) in current income tax liability
    421,887       (3,855,947 )
Increase (decrease) in unearned revenue
    2,133,686       (1,422,457 )
Net cash provided by (used in) operating activities
  $ 12,340,116     $ 4,990,288  
                 
Investing Activities
               
Proceeds from sale of long-term investment of trading and other equity securities
    -       5,563,865  
Deferred lease costs
    -       (5,620 )
Acquisition of leased assets
    (43,536,044 )     -  
Purchases of property and equipment
    -       (42,242 )
Issuance of financing note receivable
    (4,299,356 )     -  
Return of capital on distributions received
    832,744       631,524  
Net cash (used in) provided by investing activities
  $ (47,002,656 )   $ 6,147,527  
                 
Financing Activities
               
Payments on lease obligation
    -       (20,698 )
Debt financing costs
    (220,000 )     (10,999 )
Net offering proceeds
    45,624,563       -  
Dividends paid
    (7,039,176 )     (5,986,937 )
Distributions to non-controlling interest
    (1,421,562 )     (1,690,413 )
Advances on revolving line of credit
    2,535,671       139,397  
Payments on revolving line of credit
    (2,617,606 )     (139,397 )
Principal payment on credit facility
    (1,176,000 )     -  
Net cash provided by (used in) financing activities
  $ 35,685,890     $ (7,709,047 )
Net change in cash and cash equivalents
  $ 1,023,350     $ 3,428,768  
Cash and cash equivalents at beginning of period
    17,963,266       17,680,783  
Cash and cash equivalents at end of period
  $ 18,986,616     $ 21,109,551  
                 
Supplemental Disclosure of Cash Flow Information:
               
Interest paid
  $ 1,399,619     $ 1,242,441  
Net income taxes paid (refunds received)
  $ 432,187     $ 4,776,354  
Non-Cash Investing Activities
               
Change in accounts payable and accrued expenses related to acquisition expenditures
  $ 627,970     $ -  
Non-Cash Financing Activities
               
Reinvestment of distributions by common stockholders in additional common shares
  $ 61,329     $ 49,141  
Change in accounts payable and accrued expenses related to debt financing costs
  $ (220,000 )   $ -  



CorEnergy Infrastructure Trust, Inc.
NON-GAAP FINANCIAL MEASURES RECONCILIATION
FFO and AFFO Reconciliation

   
For the Three Months Ended
   
For the Six Months Ended
 
   
June 30, 2014
   
June 30, 2013
   
June 30, 2014
   
June 30, 2013
 
Net Income (attributable to CorEnergy Stockholders):
  $ 3,005,908     $ 70,072     $ 5,111,067     $ 2,482,825  
Add:
                               
Depreciation
    3,204,911       2,857,412       6,336,548       5,714,448  
Distributions received from investment securities
    341,484       317,184       832,744       631,524  
Income tax expense, net
    742,879       241,754       1,256,392       1,262,698  
Less:
                               
Net realized and unrealized gain on trading securities
    -       -       -       316,063  
Net realized and unrealized gain (loss) on other equity securities
    2,084,026       (30,976 )     3,378,208       2,395,010  
Non-controlling interest attributable to FFO reconciling items
    411,455       411,384       822,910       822,762  
Funds from operations (FFO):
  $ 4,799,701     $ 3,106,014     $ 9,335,633     $ 6,557,660  
Add:
                               
Transaction costs
    20,732       53,394       36,949       85,211  
Amortization of debt issuance costs
    144,840       128,320       289,682       256,794  
Amortization of deferred lease costs
    15,342       15,342       30,623       30,621  
Amortization of above market leases
    72,985       72,985       145,969       145,970  
Noncash costs associated with derivative instruments
    (17,443 )     71,850       (34,932 )     75,200  
Nonrecurring personnel costs
    -       113,232       -       113,232  
Less:
                               
EIP lease adjustment
    542,809       542,809       1,085,618       1,085,618  
Non-controlling interest attributable to AFFO reconciling items
    23,179       39,929       46,349       75,210  
Adjusted funds from operations (AFFO):
  $ 4,470,169     $ 2,978,399     $ 8,671,957     $ 6,103,860  
                                 
Weighted Average Shares
    31,637,568       24,147,958       30,810,060       24,144,856  
FFO per share
  $ 0.15     $ 0.13     $ 0.30     $ 0.27  
AFFO per share
  $ 0.14     $ 0.12     $ 0.28     $ 0.25  
 
 
 
Contact Information:
Katheryn Mueller, Investor Relations, 877-699-CORR (2677), info@corridortrust.com