Annual report pursuant to Section 13 and 15(d)

MoGas Transaction MoGas Transaction

v3.6.0.2
MoGas Transaction MoGas Transaction
 12 Months Ended
Dec. 31, 2016
Business Combinations [Abstract]  
MoGas Transaction
MOGAS TRANSACTION
On November 24, 2014, a wholly owned taxable REIT subsidiary of the Company, Corridor MoGas, executed a Purchase Agreement (the “MoGas Purchase Agreement”) with MoGas Energy, LLC (“Seller”) to acquire all of the equity interests of two entities, MoGas Pipeline, LLC ("MoGas") and United Property Systems, LLC ("UPS") (collectively, the "MoGas Transaction"). MoGas is the owner and operator of an interstate natural gas pipeline system in and around St. Louis and extending into central Missouri. The pipeline system, regulated by FERC, delivers natural gas to both investor-owned and municipal local distribution systems and has eight firm transportation customers. UPS owns real property that includes office and storage space which is leased to MoGas. A portion of that land is also leased to an operator of a small cement plant owned by a third party. The combined purchase price of MoGas and UPS was $125 million, funded by a combination of equity proceeds and revolving credit facility.
Pro Forma Financial Information (unaudited)
For comparative purposes, the following table illustrates the effect on the Consolidated Statements of Income and Comprehensive Income as well as earnings per share—basic and diluted—as if the Company had consummated the MoGas Transaction as of January 1, 2014:
 
For the Year Ended December 31, 2014
Total Revenue (1)
$
53,315,951

Total Expenses (2)
35,742,957

Operating Income
17,572,994

Other Expenses, net (3)
(3,997,916
)
Tax Benefit (4)
641,304

Net Income
14,216,382

Less: Net Income attributable to non-controlling interest
1,556,157

Net Income attributable to CORR Stockholders
$
12,660,225

Earnings per share:
 
Basic and Diluted
$
1.37

Weighted Average Shares of Common Stock Outstanding:
 
Basic and Diluted (5)
9,236,345

(1) Includes elimination adjustments for intercompany sales and rent.
(2) Includes adjustments for an increase in management fee payable, elimination of intercompany purchases and rent, depreciation, and other miscellaneous expenses.
(3) Includes adjustments for interest expense and other miscellaneous income.
(4) Includes an adjustment for a deferred tax benefit.
(5) Shares outstanding were adjusted for the November 17, 2014, follow-on equity offering related to the acquisition.