Exhibit 99.1
 
CorEnergy Releases Third Quarter 2015 Results

KANSAS CITY, Mo. -- CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) today announced financial results for the quarter ended September 30, 2015.

Third Quarter Developments and Subsequent Events

· Declared common stock dividend of $0.15 per share quarterly ($0.60 annualized), as expected, an 11.1% increase

· Delivered Adjusted Funds from Operations (AFFO) of $0.22 per share (basic) and $0.20 per share (diluted) in the quarter

· Reiterated CorEnergy’s long-term annual growth target of 3-5% in common stock dividends

· Recorded a non-cash provision of ~$7 million, net of taxes on Black Bison financing note

· Announced a 1-for-5 reverse stock split, expected to begin trading December 2, 2015

“CorEnergy’s third quarter results demonstrate the company’s ability to deliver upon expectations. Our lease and transportation revenues included a full quarter of rent from the Grand Isle Gathering System. Based on the increased contribution from GIGS, we raised our quarterly cash dividend by 11%, to an annualized rate of $0.60 per share,” said David Schulte, Chief Executive Officer of CorEnergy. “The stability of revenues reinforces the resiliency of CorEnergy’s strategy of investing in critical infrastructure assets that create value for our shareholders.”

Quarterly Performance Summary

Results for the third quarter of 2015 included Contribution Margin1 of $20.9 million from rent payments under leases and other revenues. Adjusted Funds from Operations (AFFO) in the third quarter of 2015 were $13.2 million, $0.22 per share (basic) and $0.20 per share (diluted), providing ample coverage of our common stock dividend of $0.15 for the third quarter.

Third quarter 2015 and third quarter 2014 results are not directly comparable, due to acquisitions and capital markets activity in both years.


   
Third Quarter
 
   
Ended September 30, 2015
 
       
Per Share
 
   
Total
   
(Basic)
   
(Diluted)
 
Net Income (Attributable to Common Stockholders)
 
(609,890
)
 
(0.01
)
 
(0.01
)
NAREIT Funds from Operation (NAREIT FFO)
 
$
4,622,975
   
$
0.08
   
$
0.08
 
Funds From Operation (FFO)
 
$
5,614,014
   
$
0.09
   
$
0.09
 
Adjusted Funds From Operations (AFFO)
 
$
13,153,835
   
$
0.22
   
$
0.20
 

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, impairment losses of depreciable properties, real estate-related depreciation, amortization (excluding amortization of deferred financing costs or loan origination costs) and after adjustments for unconsolidated partnerships and noncontrolling interests. Adjustments for noncontrolling interests are calculated on the same basis. FFO as we have presented it here, is derived by further adjusting NAREIT FFO for distributions received from investment securities, income tax expense (benefit) from investment securities, net distributions and dividend income and net realized and unrealized gain or loss on other equity securities. CorEnergy defines AFFO as FFO Adjusted for Securities Investment plus provision from loan losses, net of tax, transaction costs, amortization of debt issuance costs, amortization of deferred leasing costs, accretion of asset retirement obligations, income tax expense (benefit) unrelated to securities investments and provision for loan losses, above market rent, noncash costs associated with derivative instruments and certain costs of non-recurring nature, less maintenance, capital expenditures (if any) amortization of debt premium and other adjustments as deemed appropriate by management . 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.

Portfolio Update

Pinedale LGS: The 2015 annual adjustments for changes in the Consumer Price Index (capped at 2 percent per year) increased quarterly rent by $85 thousand for the Pinedale assets under the long-term triple net lease with operator Ultra Petroleum.
 

Portland Terminal Facility: At the end of the third quarter, CorEnergy had made approximately $9.7 million of the expected $10 million investment in construction on the site, triggering an increase of approximately $92 thousand a month in base rent under the long-term triple net lease with operator Arc Terminals.

MoGas Pipeline: On July 6, the deadline for appeal of a certification proceeding before the Federal Energy Regulatory Commission (FERC) passed without appeal.  FERC’s decision to allow MoGas to include the acquisition premium in its rate base for purposes of determining initial rates was upheld.

Omega Pipeline: Omega’s previous agreement with the Department of Defense (DoD) was extended to December 31, 2015, as of September 30, 2015. Omega anticipates receiving a future notice for further extension of the bridge agreement if necessary, and is currently working to reach terms under a new 10-year agreement, with terms similar to the previous 10-year agreement.

Black Bison Financing Note: In the third quarter, CorEnergy recorded a non-cash provision for loan losses of approximately $7 million, net of tax in relation to its financing note extended to Black Bison Water Services. Black Bison continues to work through the current downturn in upstream activity in its core service territories, while maintaining its operating plan for potential growth.

Dividend Update

A third quarter common stock cash dividend of $0.15 was declared on October 28, 2015, payable on November 30, 2015. The 11.1% increase from the second quarter dividend is associated with additional cash flows in connection with the GIGS acquisition. CorEnergy maintains a quarterly common stock dividend payment cycle of February, May, August and November. Dividend payouts may be affected by cash flow requirements and remain subject to other risks and uncertainties.

For the 7.375% Series A Cumulative Redeemable Preferred Stock, a cash dividend of $0.4609375 per depositary share was declared for the third quarter, payable on November 30, 2015. The preferred dividends, which equate to an annual payment of $1.84375 per depositary share, are paid on or about the last day of August, November, February and May.

Outlook

CorEnergy expects its energy infrastructure portfolio – the GIGS, Pinedale LGS, MoGas Pipeline, Portland Terminal Facility and Omega Pipeline – to produce stable, recurring revenues going forward. The Company believes these cash flows will support sustainable dividend payments of $0.60 per share annualized, as well as a long-term dividend growth target of 1-3% annually from existing contracts, and 3-5% inclusive of acquisitions over the long run.

The Company is evaluating a broad set of infrastructure opportunities in the range of $50 to $250 million per project. There can be no assurance that any of these acquisition opportunities will result in consummated transactions.

Reverse Stock Split

Today, CorEnergy is announcing that its Board of Directors has approved a 1-for-5 reverse stock split of its outstanding shares of common stock. The reverse stock split is scheduled to take effect at approximately 5:00 pm Eastern Time on December 1, 2015 (the “Effective Time”).  At the Effective Time, every 5 issued and outstanding shares of common stock of the Company will be converted into one share of common stock of the Company.  The par value of each share of common stock and the number of CorEnergy’s authorized shares of common stock will remain unchanged.  The shares are expected to begin trading on a split-adjusted basis at market open on December 2, 2015. Trading in the common stock will continue on the NYSE under the symbol “CORR” but the security will be assigned a new CUSIP number.  The Company believes that existing stockholders will benefit from the ability to attract a broader range of investors as result of the reverse stock split and a higher per share stock price.

Following the Effective Date of the reverse stock split, dividends per share are expected to be $.75 per quarter, or $3.00 annualized, reflecting the 1-for-5 reverse stock split. Common shares outstanding will decrease to 11,924,148 from 59,620,742 (at September 30, 2015).  The reverse stock split will not have an effect on the dividend payable on November 30, 2015, to shareholders of record on November 13, 2015.  As noted above, dividend payouts may be affected by cash flow requirements and remain subject to other risks and uncertainties.

No fractional shares will be issued in connection with the reverse stock split. Instead, each stockholder that otherwise would receive fractional shares will be entitled to receive, in lieu of such fractional shares, cash in an amount determined on the basis of the closing price of CorEnergy’s common stock on the NYSE on December 1, 2015. The reverse stock split will apply to all of CorEnergy’s outstanding shares of common stock as of the Effective Time. Stockholders of record will be receiving information from Computershare Investor Services, CorEnergy’s transfer agent, regarding their stock ownership following the reverse stock split and cash in lieu of fractional share payments, if applicable. Stockholders who hold their shares in brokerage accounts or “street name” are not required to take any action in connection with the reverse stock split.

Third Quarter 2015 Earnings Conference Call

CorEnergy will host a conference call on Tuesday, November 10, 2015, at 1:00 p.m. Central Time to discuss its financial results. Please dial into the call at 877-407-8035

(for international, 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. A link to the webcast will be accessible at www.corenergy.corridortrust.com.

A replay of the call will be available until 11:59 p.m. Central Time December 10, 2015, by dialing 877-660-6853 (for international, 1-201-612-7415). The Conference ID is 13623110.

About CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA), is a real estate investment trust (REIT) that owns essential midstream and downstream energy assets, such as pipelines, storage terminals, and transmission and distribution assets. We seek 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.

1 Contribution Margin is a non-GAAP measure defined as Total Lease Revenue, Security Distributions, Financing Revenue and Operating Results, as reported in the MD&A section of CorEnergy’s Form 10-Q. Management believes that Lease Revenue, Security Distributions, Financing Revenue and Operating Results provides investors with information that will assist them in analyzing the operating performance of our leased assets, financing notes receivable, other equity securities and operating entities. As it pertains to other equity securities, the Company believes that net distributions received are indicative of the operating performance of the assets. Reconciliations of these results to Adjusted EBITDA and to Income Attributable to Common Stockholders are included in the additional financial information attached to this press release.

CorEnergy Infrastructure Trust, Inc.
Consolidated Balance Sheets
 
   
September 30,
2015
   
December 31,
2014
 
Assets
 
(Unaudited)
     
Leased property, net of accumulated depreciation of $29,508,671 and $19,417,025
 
$
513,005,304
   
$
260,280,029
 
Leased property held for sale, net of accumulated depreciation of $0 and $5,878,933
   
     
8,247,916
 
Property and equipment, net of accumulated depreciation of $5,117,063 and $2,623,020
   
120,436,249
     
122,820,122
 
Financing notes and related accrued interest receivable, net of reserve of $7,610,000 and $0
   
13,235,876
     
20,687,962
 
Other equity securities, at fair value
   
8,658,068
     
9,572,181
 
Cash and cash equivalents
   
16,862,808
     
7,578,164
 
Accounts and other receivables
   
9,401,857
     
7,793,515
 
Intangibles and deferred costs, net of accumulated amortization of $2,423,412 and $2,271,080
   
4,848,287
     
4,384,975
 
Prepaid expenses and other assets
   
457,424
     
732,110
 
Deferred tax asset
   
960,119
     
 
Goodwill
   
1,718,868
     
1,718,868
 
Total Assets
 
$
689,584,860
   
$
443,815,842
 
Liabilities and Equity
               
Current maturities of long-term debt
 
$
7,128,000
   
$
3,528,000
 
Long-term debt
   
212,840,918
     
63,532,000
 
Asset retirement obligation
   
12,321,617
     
 
Accounts payable and other accrued liabilities
   
5,490,626
     
3,935,307
 
Management fees payable
   
1,793,075
     
1,164,399
 
Deferred tax liability
   
     
1,262,587
 
Line of credit
   
     
32,141,277
 
Unearned revenue
   
     
711,230
 
Total Liabilities
 
$
239,574,236
   
$
106,274,800
 
Equity
               
Series A Cumulative Redeemable Preferred Stock 7.375%, $56,250,000 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 22,500 and 0 issued and outstanding as of September 30, 2015, and December 31, 2014
 
$
56,250,000
     
 
Capital stock, non-convertible, $0.001 par value; 59,629,941 and 46,605,055 shares issued and outstanding at September 30, 2015, and December 31, 2014 (100,000,000 shares authorized)
   
59,630
     
46,605
 
Additional paid-in capital
   
367,548,287
     
309,950,440
 
Accumulated other comprehensive income
   
(27,779
)
   
453,302
 
Total CorEnergy Equity
   
423,830,138
     
310,450,347
 
Non-controlling Interest
   
26,180,486
     
27,090,695
 
Total Equity
   
450,010,624
     
337,541,042
 
Total Liabilities and Equity
 
$
689,584,860
   
$
443,815,842
 
 

Consolidated Statements of Income
 
   
For The Three Months Ended
   
For the Nine Months Ended
 
   
September 30,
2015
   
September 30,
2014
   
September 30,
2015
   
September 30,
2014
 
Revenue
               
Lease revenue
 
$
16,966,056
   
$
7,191,187
   
$
31,102,036
   
$
21,019,272
 
Sales revenue
   
1,434,694
     
1,741,209
     
5,442,257
     
6,814,346
 
Financing revenue
   
182,604
     
413,482
     
1,511,900
     
578,829
 
Transportation revenue
   
3,557,096
     
     
10,753,810
     
 
Total Revenue
   
22,140,450
     
9,345,878
     
48,810,003
     
28,412,447
 
Expenses
                               
Cost of sales (excluding depreciation expense)
   
382,851
     
1,284,711
     
2,201,139
     
5,377,067
 
Management fees
   
1,716,423
     
813,921
     
4,055,919
     
2,359,054
 
Acquisition expense and professional fees
   
792,939
     
725,455
     
2,451,485
     
1,427,046
 
Depreciation, amortization and ARO accretion expense
   
5,836,665
     
3,252,604
     
13,381,483
     
9,619,835
 
Provision for loan losses
   
7,951,137
     
     
7,951,137
     
 
Transportation, maintenance and general and administrative
   
856,050
     
     
2,924,010
     
 
Operating expenses
   
264,812
     
210,009
     
666,845
     
646,283
 
Other expenses
   
328,400
     
302,117
     
804,206
     
823,308
 
Total Expenses
   
18,129,277
     
6,588,817
     
34,436,224
     
20,252,593
 
Operating Income
 
$
4,011,173
   
$
2,757,061
   
$
14,373,779
   
$
8,159,854
 
Other Income (Expense)
                               
Net distributions and dividend income
 
$
241,563
   
$
1,688,830
   
$
1,025,381
   
$
1,699,874
 
Net realized and unrealized gain (loss) on other equity securities
   
(1,408,751
)
   
(865,470
)
   
(915,568
)
   
2,512,738
 
Interest expense
   
(3,854,913
)
   
(977,635
)
   
(6,129,073
)
   
(2,623,972
)
Total Other Income (Expense)
   
(5,022,101
)
   
(154,275
)
   
(6,019,260
)
   
1,588,640
 
Income (Loss) before income taxes
   
(1,010,928
)
   
2,602,786
     
8,354,519
     
9,748,494
 
Taxes
                               
Current tax expense
   
105,020
     
486,054
     
645,255
     
1,340,129
 
Deferred tax expense (benefit)
   
(1,953,973
)
   
(161,171
)
   
(2,222,706
)
   
241,146
 
Income tax expense (benefit), net
   
(1,848,953
)
   
324,883
     
(1,577,451
)
   
1,581,275
 
Net Income
   
838,025
     
2,277,903
     
9,931,970
     
8,167,219
 
Less: Net Income attributable to non-controlling interest
   
410,806
     
389,485
     
1,232,985
     
1,167,734
 
Net Income available to CorEnergy Stockholders
 
$
427,219
   
$
1,888,418
   
$
8,698,985
   
$
6,999,485
 
Preferred dividend requirements
   
1,037,109
     
     
2,811,719
     
 
Net Income (Loss) attributable to Common Stockholders
 
$
(609,890
)
 
$
1,888,418
   
$
5,887,266
   
$
6,999,485
 
                                 
Net Income
 
$
838,025
   
$
2,277,903
   
$
9,931,970
   
$
8,167,219
 
Other comprehensive income (loss):
                               
Changes in fair value of qualifying hedges attributable to CorEnergy stockholders
   
(223,176
)
   
214,602
     
(481,081
)
   
(126,856
)
Changes in fair value of qualifying hedges attributable to non-controlling interest
   
(52,180
)
   
50,175
     
(112,479
)
   
(29,660
)
Net Change in Other Comprehensive Income (Loss)
 
$
(275,356
)
 
$
264,777
   
$
(593,560
)
 
$
(156,516
)
Total Comprehensive Income
   
562,669
     
2,542,680
     
9,338,410
     
8,010,703
 
Less: Comprehensive income attributable to non-controlling interest
   
358,626
     
439,660
     
1,120,506
     
1,138,074
 
Comprehensive Income attributable to CorEnergy Stockholders
 
$
204,043
   
$
2,103,020
   
$
8,217,904
   
$
6,872,629
 
Earnings (Loss) Per Common Share:
                               
Basic
 
$
(0.01
)
 
$
0.06
   
$
0.11
   
$
0.23
 
Diluted
 
$
(0.01
)
 
$
0.06
   
$
0.11
   
$
0.23
 
Weighted Average Shares of Common Stock Outstanding:
                               
Basic
   
59,620,742
     
31,641,851
     
51,331,901
     
31,090,370
 
Diluted
   
59,620,742
     
31,637,568
     
51,331,901
     
31,090,370
 
Dividends declared per share
 
$
0.135
   
$
0.130
   
$
0.400
   
$
0.384
 
 


Consolidated Statements of Equity
 
   
Capital Stock
   
Preferred Stock
   
Warrants
   
Additional Paid-in Capital
   
Accumulated Other Comprehensive Income
   
Retained Earnings
   
Non-Controlling Interest
   
Total
 
   
Shares
   
Amount
   
Amount
                         
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 from issuance of common stock
   
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
 
Net income
   
     
     
     
     
     
     
8,698,985
     
1,232,985
     
9,931,970
 
Net change in cash flow hedges
   
     
     
     
     
     
(481,081
)
   
     
(112,479
)
   
(593,560
)
Total comprehensive income
   
     
     
     
     
     
(481,081
)
   
8,698,985
     
1,120,506
     
9,338,410
 
Issuance of Series A cumulative redeemable preferred stock, 7.375% - redemption value
   
     
     
56,250,000
     
     
(2,039,524
)
   
     
     
     
54,210,476
 
Net offering proceeds from issuance of common stock
   
12,937,500
     
12,938
     
     
     
73,244,427
     
     
     
     
73,257,365
 
Series A preferred stock dividends
   
     
     
     
     
     
     
(2,466,015
)
   
     
(2,466,015
)
Common stock dividends
   
     
     
     
     
(14,168,675
)
   
     
(6,232,970
)
   
     
(20,401,645
)
Common stock issued under director's compensation plan
   
13,388
     
13
     
     
     
89,987
     
     
     
     
90,000
 
Distributions to Non-controlling interest
   
     
     
     
     
     
     
     
(2,030,715
)
   
(2,030,715
)
Reinvestment of dividends paid to common stockholders
   
73,997
     
74
     
     
     
471,632
     
     
     
     
471,706
 
Balance at September 30, 2015 (Unaudited)
 
$
59,629,940
   
$
59,630
   
$
56,250,000
     
   
$
367,548,287
   
$
(27,779
)
   
   
$
26,180,486
   
$
450,010,624
 


Consolidated Statements of Cash Flows
 
   
For the Nine Months Ended
 
   
September 30,
2015
   
September 30,
2014
 
Operating Activities
       
Net Income
 
$
9,931,970
   
$
8,167,219
 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
               
Deferred income tax, net
   
(2,222,706
)
   
241,146
 
Depreciation, amortization and ARO accretion
   
14,757,322
     
10,434,769
 
Provision for loan loss
   
7,951,137
     
 
Net distributions and dividend income, including recharacterization of income
   
(371,323
)
   
823,499
 
Net realized and unrealized (gain) loss on other equity securities
   
915,568
     
(4,199,375
)
Unrealized gain on derivative contract
   
(48,494
)
   
(53,132
)
Common stock issued under directors compensation plan
   
90,000
     
 
Changes in assets and liabilities:
               
(Increase) decrease in accounts and other receivables
   
(1,326,469
)
   
271,624
 
Increase in financing note accrued interest receivable
   
(488,880
)
   
 
Increase in prepaid expenses and other assets
   
(70,846
)
   
(170,830
)
Increase in management fee payable
   
628,676
     
107,286
 
Increase (decrease) in accounts payable and other accrued liabilities
   
1,877,591
     
(175,707
)
Increase (decrease) in current income tax liability
   
     
909,904
 
Increase (decrease) in unearned revenue
   
(711,230
)
   
1,422,458
 
Net cash provided by operating activities
 
$
30,912,316
   
$
17,778,861
 
Investing Activities
               
Proceeds from sale of leased property held for sale
   
7,678,246
     
 
Deferred lease costs
   
(329,220
)
   
 
Acquisition expenditures
   
(251,113,605
)
   
(45,524,755
)
Purchases of property and equipment, net
   
(113,262
)
   
(11,022
)
Increase in financing notes receivable
   
(39,248
)
   
(15,510,956
)
Return of capital on distributions received
   
87,995
     
873,820
 
Net cash used in investing activities
 
$
(243,829,094
)
 
$
(60,172,913
)
Financing Activities
               
Debt financing costs
   
(1,342,288
)
   
(383,678
)
Net offering proceeds on Series A Preferred Stock
   
54,210,476
     
 
Net offering proceeds on common stock
   
73,184,680
     
45,624,563
 
Net offering proceeds on convertible debt
   
111,262,500
     
 
Dividends paid on Series A Preferred Stock
   
(2,466,015
)
   
 
Dividends paid on Common Stock
   
(19,929,939
)
   
(11,114,645
)
Distributions to non-controlling interest
   
(2,030,715
)
   
(2,079,303
)
Advances on revolving line of credit
   
45,392,332
     
2,535,671
 
Payments on revolving line of credit
   
(77,533,609
)
   
(2,617,606
)
Proceeds from term debt
   
45,000,000
     
 
Principal payments on term debt
   
(900,000
)
   
 
Principal payment on credit facility
   
(2,646,000
)
   
(2,058,000
)
Net cash provided by financing activities
 
$
222,201,422
   
$
29,907,002
 
Net Change in Cash and Cash Equivalents
 
$
9,284,644
   
$
(12,487,050
)
Cash and Cash Equivalents at beginning of period
   
7,578,164
     
17,963,266
 
Cash and Cash Equivalents at end of period
 
$
16,862,808
   
$
5,476,216
 
                 
Supplemental Disclosure of Cash Flow Information
               
Interest paid
 
$
2,657,567
   
$
2,104,349
 
Income taxes paid (net of refunds)
 
$
608,754
   
$
430,225
 
                 
Non-Cash Operating Activities
               
Change in accounts payable and accrued expenses related to prepaid assets and other expense
 
$
6,275
     
 
                 
Non-Cash Investing Activities
               
Change in accounts payable and accrued expenses related to intangibles and deferred costs
 
$
3,435
     
 
Change in accounts payable and accrued expenses related to acquisition expenditures
 
$
(448,780
)
 
$
408,778
 
Change in accounts payable and accrued expenses related to issuance of financing and other notes receivable
 
$
(39,248
)
   
 
                 
Non-Cash Financing Activities
               
Change in accounts payable and accrued expenses related to the issuance of equity
 
$
(72,685
)
   
 
Change in accounts payable and accrued expenses related to debt financing costs
 
$
35,472
   
$
(68,660
)
Reinvestment of distributions by common stockholders in additional common shares
 
$
471,706
   
$
99,081
 


NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation

   
For the Three Months Ended
   
For the Nine Months Ended
 
   
September 30,
2015
   
September 30,
2014
   
September 30,
2015
   
September 30,
2014
 
Net Income attributable to CorEnergy Stockholders
 
$
427,219
   
$
1,888,418
   
$
8,698,985
   
$
6,999,485
 
Less:
                               
Preferred Dividend Requirements
   
1,037,109
     
     
2,811,719
     
 
Net Income attributable to Common Stockholders
   
(609,890
)
   
1,888,418
     
5,887,266
     
6,999,485
 
Add:
                               
Depreciation
   
5,644,320
     
3,237,261
     
13,158,454
     
9,573,809
 
Less:
                               
Non-Controlling Interest attributable to NAREIT FFO reconciling items
   
411,455
     
411,455
     
1,234,364
     
1,234,365
 
NAREIT funds from operations (NAREIT FFO)
   
4,622,975
     
4,714,224
     
17,811,356
     
15,338,929
 
Add:
                               
Distributions received from investment securities
   
274,550
     
864,575
     
742,056
     
1,697,319
 
Income tax expense (benefit) from investment securities
   
(450,699
)
   
324,969
     
57,531
     
1,588,399
 
Less:
                               
Net distributions and dividend income
   
241,563
     
1,686,637
     
1,025,381
     
1,686,637
 
Net realized and unrealized gain on other equity securities
   
(1,408,751
)
   
(865,470
)
   
(915,568
)
   
2,512,738
 
Funds from operations adjusted for securities investments (FFO)
   
5,614,014
     
5,082,601
     
18,501,130
     
14,425,272
 
Add:
                               
Provision for loan losses, net of tax
   
6,667,823
     
     
6,667,823
     
 
Transaction costs
   
133,009
     
102,591
     
880,307
     
139,540
 
Amortization of debt issuance costs
   
699,386
     
306,300
     
1,313,026
     
595,982
 
Amortization of deferred lease costs
   
22,824
     
15,343
     
53,508
     
46,026
 
Accretion of asset retirement obligation
   
169,521
     
     
169,521
     
 
Income tax expense
   
(114,940
)
   
(86
)
   
(351,668
)
   
(7,124
)
Amortization of above market leases
   
     
72,985
     
72,987
     
218,954
 
Noncash costs associated with derivative instruments
   
(13,965
)
   
(18,200
)
   
(48,493
)
   
(53,132
)
Less:
                               
EIP Lease Adjustment
   
     
542,809
     
542,809
     
1,628,427
 
Non-Controlling Interest attributable to AFFO reconciling items
   
23,837
     
23,286
     
69,348
     
69,635
 
Adjusted funds from operations (AFFO)
 
$
13,153,835
   
$
4,995,439
   
$
26,645,984
   
$
13,667,456
 
                                 
Weighted Average Shares of Common Stock Outstanding:
                               
Basic
   
59,620,742
     
31,641,851
     
51,331,901
     
31,090,370
 
Diluted (1)
   
77,044,990
     
31,641,851
     
51,331,901
     
31,090,370
 
NAREIT FFO attributable to Common Stockholders
                               
Basic
 
$
0.08
   
$
0.15
   
$
0.35
   
$
0.49
 
Diluted (1)
 
$
0.08
   
$
0.15
   
$
0.35
   
$
0.49
 
FFO attributable to Common Stockholders
                               
Basic
 
$
0.09
   
$
0.16
   
$
0.36
   
$
0.46
 
Diluted (1)
 
$
0.09
   
$
0.16
   
$
0.36
   
$
0.46
 
AFFO attributable to Common Stockholders
                               
Basic
 
$
0.22
   
$
0.16
   
$
0.52
   
$
0.44
 
Diluted
 
$
0.20
   
$
0.16
   
$
0.52
   
$
0.44
 

(1) Diluted EPS for the three and nine months ended September 30, 2015, excludes the impact to income and the number of outstanding from the conversion of the 7.00% Convertible Senior Notes, because to do so, would be antidilutive.
 
 

Lease Revenue, Security Distributions, Financing Revenue, and Operating Results
 
   
For the Three Months Ended
   
For the Nine Months Ended
 
   
September 30,
2015
   
September 30,
2014
   
September 30,
2015
   
September 30,
2014
 
Lease Revenue, Security Distributions, Financing Revenue, and Operating Results
               
Leases:
               
Lease revenue
 
$
16,966,056
   
$
7,191,187
   
$
31,102,036
   
$
21,019,272
 
Other Equity Securities:
                               
Net cash distributions received
   
274,550
     
866,768
     
742,056
     
1,710,556
 
Financing:
                               
Financing revenue
   
182,604
     
413,482
     
1,511,900
     
578,829
 
Operations:
                               
Sales revenue
   
1,434,694
     
1,741,209
     
5,442,257
     
6,814,346
 
Transportation revenue
   
3,557,096
     
     
10,753,810
     
 
Cost of sales
   
(382,851
)
   
(1,284,711
)
   
(2,201,139
)
   
(5,377,067
)
Transportation, maintenance and general and administrative
   
(856,050
)
   
     
(2,924,010
)
   
 
Operating expenses (excluding depreciation, amortization and ARO accretion)
   
(264,812
)
   
(210,009
)
   
(666,845
)
   
(646,283
)
Net Operations (excluding depreciation, amortization and ARO accretion)
   
3,488,077
     
246,489
     
10,404,073
     
790,996
 
Total Lease Revenue, Security Distributions, Financing Revenue and Operating Results
 
$
20,911,287
   
$
8,717,926
   
$
43,760,065
   
$
24,099,653
 
Expenses
   
(2,837,762
)
   
(1,841,493
)
   
(7,311,610
)
   
(4,609,408
)
Non-Controlling Interest attributable to Adjusted EBITDA Items
   
(971,243
)
   
(954,495
)
   
(2,912,908
)
   
(2,863,153
)
Adjusted EBITDA
 
$
17,102,282
   
$
5,921,938
   
$
33,535,547
   
$
16,627,092
 


Reconciliation of Adjusted EBITDA to Income Attributable to Common Stockholders

   
For the Three Months Ended
   
For the Nine Months Ended
 
   
September 30,
2015
   
September 30,
2014
   
September 30,
2015
   
September 30,
2014
 
Adjusted EBITDA
 
$
17,102,282
   
$
5,921,938
   
$
33,535,547
   
$
16,627,092
 
Other Adjustments:
                               
Distributions and dividends received in prior period previously deemed a return of capital (recorded as a cost reduction) and reclassified as income in a subsequent period
   
     
822,062
     
371,323
     
(10,682
)
Net realized and unrealized gain on securities, noncash portion
   
(1,441,738
)
   
(865,470
)
   
(1,003,566
)
   
2,512,738
 
Depreciation, amortization & ARO accretion
   
(5,836,665
)
   
(3,252,604
)
   
(13,381,483
)
   
(9,619,835
)
Interest expense, net
   
(3,854,913
)
   
(977,635
)
   
(6,129,073
)
   
(2,623,972
)
Provision for loan losses
   
(7,951,137
)
   
     
(7,951,137
)
   
 
Non-controlling interest attributable to depreciation, amortization, ARO accretion and interest expense
   
560,437
     
565,010
     
1,679,923
     
1,695,419
 
Income tax benefit (expense)
   
1,848,953
     
(324,883
)
   
1,577,451
     
(1,581,275
)
Preferred dividend requirements
   
(1,037,109
)
   
     
(2,811,719
)
   
 
Income Attributable to Common Stockholders
 
$
(609,890
)
 
$
1,888,418
   
$
5,887,266
   
$
6,999,485