Exhibit 99.1
 
CorEnergy Releases Second Quarter 2016 Results

KANSAS CITY, Mo. – August 9, 2016 - CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) today announced financial results for the second quarter ended June 30, 2016.

Recent Developments

· Delivered Net Income of $0.66 per common share (basic), NAREIT Funds from Operations (NAREIT FFO)1 of $1.10 per share (basic), Funds from Operations (FFO)1 of $1.04 per share (basic) and Adjusted Funds from Operations (AFFO)1 of $1.12 per share (basic)

· Declared common stock dividend of $0.75 per share ($3.00 annualized) in the second quarter

· Completed ~$2 million of share repurchases and ~$1 million of convertible debt repurchases during the first half of 2016

· Sold Black Bison Assets and expect to convert a portion of the Four Wood Financing Note to a preferred equity interest

· All tenants continue to make timely rent payments

Second Quarter 2016 Performance Summary

Results for the second quarter of 2016 were approximately flat sequentially and include Total Revenue of $22.1 million, Net Income to Common Shareholders of $7.9 million, and Contribution Margin2 of $20.9 million. CorEnergy believes the Contribution Margin reflects the Company’s operating performance because it eliminates the impact of commodity purchases and sales, as well as direct operating expenses, of certain assets.   Due to acquisitions, CorEnergy does not believe comparisons with the second quarter of 2015 are meaningful.

Earnings for the second quarter of 2016 were $7.9 million, or $0.66 per common share (basic and diluted).  AFFO for the second quarter of 2016 was $13.3 million, or $1.12 per share (basic) and $1.01 per share (diluted). Management uses AFFO as a measure of long-term sustainable operational performance. For completeness, we present other measures of income in the table below:

   
Second Quarter
  
   
Ended June 30, 2016
  
         
Per Share
  
   
Total
    
Basic
    
Diluted
  
Net Income (Attributable to Common Stockholders)1
  
$
7,917,418
    
$
0.66
    
$
0.66
  
NAREIT Funds from Operations (NAREIT FFO)1
  
$
13,045,630
    
$
1.10
    
$
0.99
  
Funds From Operations (FFO)1
  
$
12,380,700
    
$
1.04
    
$
0.95
  
Adjusted Funds From Operations (AFFO)1
  
$
13,320,271
    
$
1.12
    
$
1.01
  

NAREIT FFO, FFO, and AFFO are non-GAAP measures. Reconciliations of NAREIT FFO, FFO and AFFO, as presented, to Net Income Attributable to CorEnergy Stockholders and Contribution Margin, also a non-GAAP term, are included at the end of this press release. See Notes 1 and 2 for additional information.
 
Portfolio Update

Grand Isle Gathering System:  The parent company of our tenant of the GIGS, Energy XXI Ltd., had its Disclosure Statement approved on July 15,, 2016, enabling EXXI to begin soliciting creditor approval of its proposed Plan of Reorganization.

Pinedale Liquids Gathering System: Ultra Petroleum Corp., the parent company of our tenant of the Pinedale LGS, has requested an extension to file its proposed Plan of Reorganization and Disclosure Statement until first quarter 2017. We anticipate UPL will accept or reject its leases, including the Pinedale Lease Agreement, by year-end 2016.

Black Bison Financing Note: On June 16, 2016, CorEnergy sold substantially all of the assets of Black Bison Water Services and its subsidiaries to Expedition Water Solutions for a combination of $1 million in cash, plus an earn-out of up to $6.5 million in royalty payments. Royalty payments will not increase AFFO1.

Four Wood Financing Note: CorEnergy is in the process of restructuring its Four Wood Financing Note to SWD Enterprises, LLC and converting a portion of it into a preferred equity interest.  Cash and Payment in Kind interest and dividends will not increase AFFO1, until Four Wood generates sustainable operating margins and the reserve for collection has been removed.

Dividend Update

Common Stock: A second quarter common stock cash dividend of $0.75 ($3.00 annualized) was declared on July 27, 2016, payable on August 31, 2016. CorEnergy maintains a quarterly common stock dividend payment cycle of February, May, August and November.

Preferred Stock: For the Company’s 7.375% Series A Cumulative Redeemable Preferred Stock, a cash dividend of $0.4609375 per depositary share was declared for the second quarter, payable on August 31, 2016. The preferred dividends, which equate to an annual payment of $1.84375 per depositary share, are paid on or about the last day of February, May, August and November.

Outlook

CorEnergy intends to continue paying dividends based on rents received, pending the outcomes of the bankruptcy processes. With the parent company of our GIGS tenant and the tenant of the Pinedale LGS currently reorganizing pursuant to Chapter 11 bankruptcy proceedings, we refer investors to the risk factors in our 10-Q filings as to the potential risks associated with unexpired leases. We do not intend to fund acquisitions until significant bankruptcy milestones for EXXI and UPL have occurred and been disclosed to the public. We expect to occur by year-end 2016.

Second Quarter 2016 Earnings Conference Call

CorEnergy will host a conference call on Wednesday, August 10, 2016, 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 corenergy.reit.
 
A replay of the call will be available until 11:59 p.m. Eastern Time September 10, 2016 by dialing 877-660-6853 (for international, 1-201-612-7415). The Conference ID is 13642220.

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.reit.

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.

Notes

1NAREIT 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 non-controlling interests. Adjustments for non-controlling 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 Investments 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. Reconciliations of NAREIT FFO, FFO Adjusted for Securities Investments and AFFO to Adjusted EBITDA and to Net Income Attributable to Common Stockholders are included in the additional financial information attached to this press release.

2Contribution 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, before subtracting corporate expenses and depreciation and amortization expenses. 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.
 
Consolidated Balance Sheets (Unaudited)
  
   
   
June 30, 2016
    
December 31, 2015
  
Assets
            
Leased property, net of accumulated depreciation of $42,821,737 and $33,869,263
  
$
500,273,741
    
$
509,226,215
  
Property and equipment, net of accumulated depreciation of $7,615,837 and $5,948,988
    
118,335,359
      
119,629,978
  
Financing notes and related accrued interest receivable, net of reserve of $4,100,000 and $13,784,137
    
1,500,000
      
7,675,626
  
Other equity securities, at fair value
    
8,036,137
      
8,393,683
  
Cash and cash equivalents
    
8,116,117
      
14,618,740
  
Accounts and other receivables
    
14,658,133
      
10,431,240
  
Deferred costs, net of accumulated amortization of $1,708,009 and $2,717,609
    
3,685,192
      
4,187,271
  
Prepaid expenses and other assets
    
808,011
      
491,024
  
Deferred tax asset
    
1,977,585
      
1,606,976
  
Goodwill
    
1,718,868
      
1,718,868
  
Total Assets
  
$
659,109,143
    
$
677,979,621
  
Liabilities and Equity
                
Current maturities of Term loan – related party
  
$
668,556
    
$
—
  
Current maturities of Term loan
    
7,890,000
      
66,132,000
  
Term loan – related party
    
9,660,629
      
—
  
Term loan, net of deferred debt costs
    
33,260,436
      
39,308,842
  
Line of credit
    
44,000,000
      
—
  
7.00% Convertible Senior Notes, net of discount and deferred debt costs
    
110,851,168
      
111,423,910
  
Asset retirement obligation
    
13,197,499
      
12,839,042
  
Accounts payable and other accrued liabilities
    
2,540,699
      
2,317,774
  
Management fees payable
    
1,699,786
      
1,763,747
  
Unearned revenue
    
54,094
      
—
  
Total Liabilities
  
$
223,822,867
    
$
233,785,315
  
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 issued and outstanding as of June 30, 2016, and December 31, 2015
  
$
56,250,000
      
56,250,000
  
Capital stock, non-convertible, $0.001 par value; 11,869,828 and 11,939,697 shares issued and outstanding at June 30, 2016, and December 31, 2015 (100,000,000 shares authorized)
    
11,870
      
11,940
  
Additional paid-in capital
    
352,270,804
      
361,581,507
  
Accumulated other comprehensive income (loss)
    
(17,274
)
    
190,797
  
Total CorEnergy Equity
    
408,515,400
      
418,034,244
  
Non-controlling Interest
    
26,770,876
      
26,160,062
  
Total Equity
    
435,286,276
      
444,194,306
  
Total Liabilities and Equity
  
$
659,109,143
    
$
677,979,621
  

Consolidated Statements of Income (Unaudited)
  
   
   
For The Three Months Ended
    
For the Six Months Ended
  
   
June 30, 2016
    
June 30, 2015
    
June 30, 2016
    
June 30, 2015
  
Revenue
                        
Lease revenue
  
$
16,996,072
    
$
6,799,879
    
$
33,992,144
    
$
14,135,980
  
Transportation and distribution revenue
    
5,064,680
      
3,546,979
      
10,164,131
      
7,196,714
  
Financing revenue
    
—
      
668,904
      
162,344
      
1,329,296
  
Sales revenue
    
—
      
1,665,908
      
—
      
4,007,563
  
Total Revenue
    
22,060,752
      
12,681,670
      
44,318,619
      
26,669,553
  
Expenses
                                
Transportation and distribution expenses
    
1,378,306
      
1,272,025
      
2,740,631
      
2,469,993
  
Cost of Sales
    
—
      
569,958
      
—
      
1,818,288
  
General and administrative
    
2,773,240
      
1,905,329
      
6,063,092
      
4,473,848
  
Depreciation, amortization and ARO accretion expense
    
5,737,025
      
3,495,986
      
11,033,843
      
7,544,818
  
Provision for loan loss and disposition
    
369,278
      
—
      
5,014,466
      
—
  
Total Expenses
    
10,257,849
      
7,243,298
      
24,852,032
      
16,306,947
  
Operating Income
  
$
11,802,903
    
$
5,438,372
    
$
19,466,587
    
$
10,362,606
  
Other Income (Expense)
                                
Net distributions and dividend income
  
$
214,169
    
$
193,410
    
$
589,742
    
$
783,818
  
Net realized and unrealized gain (loss) on other equity securities
    
1,199,665
      
43,385
      
(429,087
)
    
493,183
  
Interest expense
    
(3,540,812
)
    
(1,126,888
)
    
(7,466,821
)
    
(2,274,160
)
Total Other Income (Expense)
    
(2,126,978
)
    
(890,093
)
    
(7,306,166
)
    
(997,159
)
Income before income taxes
    
9,675,925
      
4,548,279
      
12,160,421
      
9,365,447
  
Taxes
                                
Current tax expense (benefit)
    
203,652
      
104,479
      
(474,079
)
    
540,235
  
Deferred tax expense (benefit)
    
206,786
      
(153,342
)
    
(370,609
)
    
(268,733
)
Income tax expense (benefit), net
    
410,438
      
(48,863
)
    
(844,688
)
    
271,502
  
Net Income
    
9,265,487
      
4,597,142
      
13,005,109
      
9,093,945
  
Less: Net Income attributable to non-controlling interest
    
310,960
      
412,004
      
659,461
      
822,179
  
Net Income attributable to CorEnergy Stockholders
  
$
8,954,527
    
$
4,185,138
    
$
12,345,648
    
$
8,271,766
  
Preferred dividend requirements
    
1,037,109
      
1,037,109
      
2,074,218
      
1,774,609
  
Net Income attributable to Common Stockholders
  
$
7,917,418
    
$
3,148,029
    
$
10,271,430
    
$
6,497,157
  
                                 
Net Income
  
$
9,265,487
    
$
4,597,142
    
$
13,005,109
    
$
9,093,945
  
Other comprehensive income (loss):
                                
Changes in fair value of qualifying hedges attributable to CorEnergy stockholders
    
3,005
      
18,202
      
(208,071
)
    
(257,905
)
Changes in fair value of qualifying hedges attributable to non-controlling interest
    
703
      
4,256
      
(48,647
)
    
(60,299
)
Net Change in Other Comprehensive Income (Loss)
  
$
3,708
    
$
22,458
    
$
(256,718
)
  
$
(318,204
)
Total Comprehensive Income
    
9,269,195
      
4,619,600
      
12,748,391
      
8,775,741
  
Less: Comprehensive income attributable to non-controlling interest
    
311,663
      
416,260
      
610,814
      
761,880
  
Comprehensive Income attributable to CorEnergy Stockholders
  
$
8,957,532
    
$
4,203,340
    
$
12,137,577
    
$
8,013,861
  
Earnings Per Common Share:
                                
Basic
  
$
0.66
    
$
0.33
    
$
0.86
    
$
0.69
  
Diluted
  
$
0.66
    
$
0.32
    
$
0.86
    
$
0.68
  
Weighted Average Shares of Common Stock Outstanding:
                                
Basic
    
11,912,030
      
9,523,753
      
11,927,984
      
9,423,758
  
Diluted
    
15,383,892
      
9,863,413
      
11,927,984
      
9,594,526
  
Dividends declared per share
  
$
0.750
    
$
0.675
    
$
1.500
    
$
1.325
  

Consolidated Statements of Equity
  
   
   
Capital Stock
    
Preferred Stock
    
Additional
Paid-in
Capital
    
Accumulated Other Comprehensive Income
    
Retained
Earnings
    
Non-Controlling
Interest
    
Total
  
   
Shares
    
Amount
    
Amount
  
Balance at December 31, 2014
    
9,321,010
    
$
9,321
    
$
—
    
$
309,987,724
    
$
453,302
    
$
—
    
$
27,090,695
    
$
337,541,042
  
Net income
    
—
      
—
      
—
      
—
      
—
      
12,319,911
      
1,617,206
      
13,937,117
  
Net change in cash flow hedges
    
—
      
—
      
—
      
—
      
(262,505
)
    
—
      
(61,375
)
    
(323,880
)
Total comprehensive income (loss)
    
—
      
—
      
—
      
—
      
(262,505
)
    
12,319,911
      
1,555,831
      
13,613,237
  
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
    
2,587,500
      
2,587
      
—
      
73,254,777
      
—
      
—
      
—
      
73,257,364
  
Series A preferred stock dividends
    
—
      
—
      
—
      
—
      
—
      
(3,503,125
)
    
—
      
(3,503,125
)
Common stock dividends
    
—
      
—
      
—
      
(20,529,353
)
    
—
      
(8,816,786
)
    
—
      
(29,346,139
)
Common stock issued under director's compensation plan
    
2,677
      
3
      
—
      
89,997
      
—
      
—
      
—
      
90,000
  
Distributions to non-controlling interest
    
—
      
—
      
—
      
—
      
—
      
—
      
(2,486,464
)
    
(2,486,464
)
Reinvestment of dividends paid to common stockholders
    
28,510
      
29
      
—
      
817,886
      
—
      
—
      
—
      
817,915
  
Balance at December 31, 2015
    
11,939,697
    
$
11,940
    
$
56,250,000
    
$
361,581,507
    
$
190,797
    
$
—
    
$
26,160,062
    
$
444,194,306
  
Net income
    
—
      
—
      
—
      
—
      
—
      
12,345,648
      
659,461
      
13,005,109
  
Net change in cash flow hedges
    
—
      
—
      
—
      
—
      
(208,071
)
    
—
      
(48,647
)
    
(256,718
)
Total comprehensive income (loss)
    
—
      
—
      
—
      
—
      
(208,071
)
    
12,345,648
      
610,814
      
12,748,391
  
Repurchase of common stock
    
(90,613
)
    
(91
)
    
—
      
(2,041,760
)
    
—
      
—
      
—
      
(2,041,851
)
Series A preferred stock dividends
    
—
      
—
      
—
              
—
      
(2,074,218
)
    
—
      
(2,074,218
)
Common stock dividends
    
—
      
—
      
—
      
(7,630,745
)
    
—
      
(10,271,430
)
    
—
      
(17,902,175
)
Reinvestment of dividends paid to common stockholders
    
1,511
      
2
      
—
      
29,998
      
—
      
—
      
—
      
30,000
  
Reinvestment of dividends paid to common stockholders
    
19,233
      
19
      
—
      
331,804
      
—
      
—
      
—
      
331,823
  
Balance at June 30, 2016 (Unaudited)
    
11,869,828
    
$
11,870
    
$
56,250,000
    
$
352,270,804
    
$
(17,274
)
  
$
—
    
$
26,770,876
    
$
435,286,276
  

Consolidated Statements of Cash Flows (Unaudited)
  
   
   
For the Six Months Ended
  
   
June 30, 2016
    
June 30, 2015
  
Operating Activities
            
Net Income
  
$
13,005,109
    
$
9,093,945
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Deferred income tax, net
    
(370,609
)
    
(268,734
)
Depreciation, amortization and ARO accretion
    
12,149,782
      
8,216,190
  
Provision for loan loss
    
5,014,466
      
—
  
Loss on repurchase of convertible debt
    
(68,734
)
    
—
  
Net distributions and dividend income, including recharacterization of income
    
(117,004
)
    
(371,323
)
Net realized and unrealized loss (gain) on other equity securities
    
429,087
      
(493,183
)
Unrealized gain on derivative contract
    
(132,094
)
    
(34,529
)
Common stock issued under directors compensation plan
    
30,000
      
60,000
  
Changes in assets and liabilities:
                
(Increase) decrease in accounts and other receivables
    
(3,733,564
)
    
22,280
  
Decrease (increase) in financing note accrued interest receivable
    
95,114
      
(342,874
)
Increase in prepaid expenses and other assets
    
(143,996
)
    
(198,215
)
(Decrease) increase in management fee payable
    
(63,961
)
    
47,959
  
Decrease in accounts payable and other accrued liabilities
    
(133,100
)
    
(702,221
)
Increase in current income tax liability
    
—
      
292,214
  
Increase (decrease) in unearned revenue
    
54,094
      
(711,230
)
Net cash provided by operating activities
  
$
26,014,590
    
$
14,610,279
  
Investing Activities
                
Proceeds from assets and liabilities held for sale
    
644,934
      
7,678,246
  
Acquisition expenditures
    
—
      
(249,925,974
)
Purchases of property and equipment, net
    
(372,230
)
    
(19,820
)
Proceeds from asset foreclosure and sale
    
223,451
      
—
  
Increase in financing notes receivable
    
(202,000
)
    
(39,248
)
Return of capital on distributions received
    
2,134
      
55,009
  
Net cash provided (used) by investing activities
  
$
296,289
    
$
(242,251,787
)
Financing Activities
                
Debt financing costs
    
(193,000
)
    
(132,041
)
Net offering proceeds on Series A preferred stock
    
—
      
54,210,476
  
Net offering proceeds on common stock
    
—
      
73,431,411
  
Net offering proceeds on convertible debt
    
—
      
111,262,500
  
Repurchases of common stock
    
(2,041,851
)
    
—
  
Repurchases of convertible debt
    
(931,266
)
    
—
  
Dividends paid on Series A preferred stock
    
(2,074,218
)
    
(1,428,906
)
Dividends paid on common stock
    
(17,570,352
)
    
(11,952,944
)
Distributions to non-controlling interest
    
—
      
(1,131,356
)
Advances on revolving line of credit
    
44,000,000
      
45,072,666
  
Payments on revolving line of credit
    
—
      
(35,064,018
)
Principal payments on term debt
    
(1,800,000
)
    
—
  
Principal payments on credit facility
    
(52,202,815
)
    
(1,764,000
)
Net cash (used) provided by financing activities
  
$
(32,813,502
)
  
$
232,503,788
  
Net Change in Cash and Cash Equivalents
  
$
(6,502,623
)
  
$
4,862,280
  
Cash and Cash Equivalents at beginning of period
    
14,618,740
      
7,578,164
  
Cash and Cash Equivalents at end of period
  
$
8,116,117
    
$
12,440,444
  
                 
Supplemental Disclosure of Cash Flow Information
                
Interest paid
  
$
6,758,715
    
$
1,734,846
  
Income taxes paid (net of refunds)
  
$
3,437
    
$
(2,999
)
                 
Non-Cash Operating Activities
                
Change in accounts payable and accrued expenses related to prepaid assets and other expense
  
$
—
    
$
16,248
  
                 
Non-Cash Investing Activities
                
Change in accounts and other receivables
  
$
(450,000
)
  
$
—
  
Change in accounts payable and accrued expenses related to intangibles and deferred costs
  
$
—
    
$
297,831
  
Change in accounts payable and accrued expenses related to acquisition expenditures
  
$
—
    
$
(51,699
)
Change in accounts payable and accrued expenses related to issuance of financing and other notes receivable
  
$
—
    
$
(39,248
)
Net change in Assets Held for Sale, Property and equipment, Prepaid expenses and other assets, Accounts payable and other accrued liabilities and Liabilities held for sale
  
$
(1,776,549
)
    
—
  
                 
Non-Cash Financing Activities
                
Change in accounts payable and accrued expenses related to the issuance of common equity
  
$
—
    
$
176,338
  
Change in accounts payable and accrued expenses related to debt financing costs
  
$
—
    
$
157,059
  
Reinvestment of distributions by common stockholders in additional common shares
  
$
331,823
    
$
400,532
  

NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation
  
   
   
For the Three Months Ended
    
For the Six Months Ended
  
   
June 30, 2016
    
June 30, 2015
    
June 30, 2016
    
June 30, 2015
  
Net Income attributable to CorEnergy Stockholders
  
$
8,954,527
    
$
4,185,138
    
$
12,345,648
    
$
8,271,766
  
Less:
                                
Preferred Dividend Requirements
    
1,037,109
      
1,037,109
      
2,074,218
      
1,774,609
  
Net Income attributable to Common Stockholders
    
7,917,418
      
3,148,029
      
10,271,430
      
6,497,157
  
Add:
                                
Depreciation
    
5,539,667
      
3,480,644
      
10,629,420
      
7,514,134
  
Less:
                                
Non-Controlling Interest attributable to NAREIT FFO reconciling items
    
411,455
      
411,455
      
822,909
      
822,909
  
NAREIT funds from operations (NAREIT FFO)
    
13,045,630
      
6,217,218
      
20,077,941
      
13,188,382
  
Add:
                                
Distributions received from investment securities
    
215,139
      
218,557
      
474,873
      
467,506
  
Income tax expense (benefit) from investment securities
    
533,765
      
88,233
      
58,128
      
501,097
  
Less:
                                
Net distributions and dividend income
    
214,169
      
193,410
      
589,742
      
783,818
  
Net realized and unrealized gain (loss) on other equity securities
    
1,199,665
      
43,385
      
(429,087
)
    
493,183
  
Funds from operations adjusted for securities investments (FFO)
    
12,380,700
      
6,287,213
      
20,450,287
      
12,879,984
  
Add:
                                
Provision for loan losses, net of tax
    
369,278
      
—
      
4,409,359
      
—
  
Transaction costs
    
1,000
      
74,551
      
37,915
      
747,298
  
Amortization of debt issuance costs
    
470,506
      
307,930
      
1,087,603
      
613,640
  
Amortization of deferred lease costs
    
22,983
      
15,342
      
45,966
      
30,684
  
Accretion of asset retirement obligation
    
174,375
      
—
      
358,457
      
—
  
Income tax expense (benefit)
    
(123,327
)
    
(137,096
)
    
(297,709
)
    
(229,595
)
Amortization of above market leases
    
—
      
—
      
—
      
72,987
  
Unrealized (gain) loss associated with derivative instruments
    
33,820
      
(17,649
)
    
57,695
      
(34,529
)
Less:
                                
EIP Lease Adjustment (1)
    
—
      
—
      
—
      
542,809
  
Non-Controlling Interest attributable to AFFO reconciling items
    
9,064
      
22,227
      
45,868
      
45,511
  
Adjusted funds from operations (AFFO)
  
$
13,320,271
    
$
6,508,064
    
$
26,103,705
    
$
13,492,149
  
                                 
Weighted Average Shares of Common Stock Outstanding:
                                
Basic
    
11,912,030
      
9,523,753
      
11,927,984
      
9,423,758
  
Diluted
    
15,396,879
      
9,863,413
      
15,406,339
      
9,594,526
  
NAREIT FFO attributable to Common Stockholders
                                
Basic
  
$
1.10
    
$
0.65
    
$
1.68
    
$
1.40
  
Diluted
  
$
0.99
    
$
0.63
    
$
1.59
    
$
1.38
  
FFO attributable to Common Stockholders
                                
Basic
  
$
1.04
    
$
0.66
    
$
1.71
    
$
1.37
  
Diluted
  
$
0.95
    
$
0.64
    
$
1.61
    
$
1.35
  
AFFO attributable to Common Stockholders
                                
Basic
  
$
1.12
    
$
0.68
    
$
2.19
    
$
1.43
  
Diluted
  
$
1.01
    
$
0.66
    
$
1.98
    
$
1.41
  

(1) Based on the economic return to CorEnergy resulting from the sale of our 40 percent undivided interest in EIP, we determined that it was appropriate to eliminate the portion of EIP lease income attributable to return of capital, as a means to more accurately reflect the EIP lease revenue contribution to CorEnergy-sustainable AFFO. CorEnergy believes that the portion of the EIP lease revenue attributable to return of capital, unless adjusted, overstates CorEnergy's distribution-paying capabilities and is not representative of sustainable EIP income over the life of the lease. The Company completed the sale of EIP on April 1, 2015.
 
Lease Revenue, Security Distributions, Financing Revenue, and Operating Results
  
                         
   
For the Three Months Ended
    
For the Six Months Ended
  
   
June 30, 2016
    
June 30, 2015
    
June 30, 2016
    
June 30, 2015
  
Lease Revenue, Security Distributions, Financing Revenue, and Operating Results
                        
Leases:
                        
Lease revenue
  
$
16,996,072
    
$
6,799,879
    
$
33,992,144
    
$
14,135,980
  
Other Equity Securities:
                                
Net cash distributions received
    
215,139
      
218,557
      
474,873
      
467,506
  
Financing:
                                
Financing revenue
    
—
      
668,904
      
162,344
      
1,329,296
  
Operations:
                                
Transportation and distribution revenue (1)
    
5,064,680
      
5,212,887
      
10,164,131
      
11,204,277
  
Transportation and distribution expense (2)
    
(1,378,306
)
    
(1,841,983
)
    
(2,740,631
)
    
(4,288,281
)
Net Operations (excluding depreciation, amortization, and ARO accretion)
    
3,686,374
      
3,370,904
      
7,423,500
      
6,915,996
  
Total Lease Revenue, Security Distributions, Financing Revenue, and Operating Results
  
$
20,897,585
    
$
11,058,244
    
$
42,052,861
    
$
22,848,778
  
General and administrative
    
(2,773,240
)
    
(1,905,329
)
    
(6,063,092
)
    
(4,473,848
)
Non-Controlling Interest attributable to Adjusted EBITDA Items
    
(962,763
)
    
(971,678
)
    
(1,907,290
)
    
(1,941,665
)
Adjusted EBITDA
  
$
17,161,582
    
$
8,181,237
    
$
34,082,479
    
$
16,433,265
  

(1) MoGas and Omega revenues have been combined and are presented net of Omega's natural gas and propane costs subsequent to the new contract with the DOD executed on January 28, 2016, effective February 1, 2016.  In accordance with GAAP, Omega's historical Sales revenue and Cost of sales for the three and six months ended June 30, 2015, are presented separately, on a gross basis, in the Consolidated Statements of Income and Comprehensive Income in this quarterly report on Form 10-Q.  For ease of comparison in this results of operations discussion, Omega's historical Sales revenue, Cost of sales, and Operating expenses for the three and six months ended June 30, 2016 and 2015, are presented on a gross basis and are included in the Transportation and distribution lines in this table.
(2) MoGas' transportation, maintenance, and administrative expenses and Omega's distribution and operating expenses and cost of sales on non-DOD customers have been combined subsequent to the new contract with the DOD executed on January 28, 2016.
 
Reconciliation of Adjusted EBITDA to Income Attributable to Common Stockholders
  
   
   
For the Three Months Ended
    
For the Six Months Ended
  
   
June 30, 2016
    
June 30, 2015
    
June 30, 2016
    
June 30, 2015
  
Adjusted EBITDA
  
$
17,161,582
    
$
8,181,237
    
$
34,082,479
    
$
16,433,265
  
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 (1)
    
—
      
—
      
117,004
      
371,323
  
Net realized and unrealized gain (loss) on securities, noncash portion
    
1,198,695
      
18,238
      
(431,222
)
    
438,172
  
Depreciation, amortization, and ARO accretion
    
(5,737,025
)
    
(3,495,986
)
    
(11,033,843
)
    
(7,544,818
)
Interest expense, net
    
(3,540,812
)
    
(1,126,888
)
    
(7,466,821
)
    
(2,274,160
)
Provision for loan losses
    
(369,278
)
    
—
      
(5,014,466
)
    
—
  
Non-controlling interest attributable to depreciation, amortization, and interest expense(2)
    
651,803
      
559,674
      
1,247,828
      
1,119,486
  
Income tax benefit (expense)
    
(410,438
)
    
48,863
      
844,688
      
(271,502
)
Preferred dividend requirements
    
(1,037,109
)
    
(1,037,109
)
    
(2,074,218
)
    
(1,774,609
)
Income Attributable to Common Stockholders
  
$
7,917,418
    
$
3,148,029
    
$
10,271,429
    
$
6,497,157
  

Contacts
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Lesley Robertshaw, 877-699-CORR (2677)
info@corridortrust.com