| HELD-FOR-SALE |
HELD-FOR-SALE MoGas Pipeline and Omega Pipeline Systems
As of December 31, 2023, the Company's MoGas and Omega pipeline systems were classified as assets and liabilities held-for-sale.
On January 19, 2024, CorEnergy closed the sale of its MoGas and Omega pipeline systems to Spire Midstream, a subsidiary of Spire Inc. (NYSE: SR), in an all-cash transaction for $175.0 million, plus post close working capital adjustments. At closing, CorEnergy repaid and terminated the Crimson Credit Facility, for a total of $108.5 million. Subsequent to this transaction, Crimson is the sole remaining operation of CorEnergy.
The pre-tax profit from the disposal group held for sale is summarized in the table below for each period the statement of operations is presented:
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For the Year Ended |
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December 31, 2023 |
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December 31, 2022 |
Pre-tax profit(1)
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$ |
1,549,567 |
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$ |
4,570,194 |
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| Allocated interest related to the sale to repay the Crimson Credit Facility |
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10,494,076 |
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6,335,303 |
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| (1) The Company was contractually obligated to use the proceeds from the anticipated sale to repay the Crimson Credit Facility. As such, the aforementioned pre-tax profit includes allocated interest related to the sale and repayment of the Crimson Credit Facility. |
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Held-for-Sale Balance Sheet
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December 31, 2023 |
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| Assets |
(Unaudited) |
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Property and equipment, net of accumulated depreciation of $30,077,502 |
$ |
99,230,819 |
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Leased property, net of accumulated depreciation of $309,778 |
1,216,249 |
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| Cash and cash equivalents |
225,000 |
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| Accounts and other receivables |
3,058,685 |
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| Inventory |
146,042 |
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| Prepaid expenses and other assets |
1,245,876 |
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| Operating right-of-use assets |
107,925 |
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| Total Assets |
$ |
105,230,596 |
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| Liabilities |
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| Accounts payable and other accrued liabilities |
638,187 |
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| Operating lease liability |
27,792 |
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Deferred tax liability, net(1)
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631,480 |
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| Unearned revenue |
4,671,762 |
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| Total Liabilities |
$ |
5,969,221 |
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| (1) The deferred tax assets and liabilities are recorded within certain parent entities that are not part of the disposal group, however, because the balances were generated from the operations of the disposal group, the Company has included them net within liabilities held-for-sale on the Consolidated Balance Sheet. |
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