CorEnergy Infrastructure Trust, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Fair Value (Tables)

Fair Value (Tables)

12 Months Ended

Dec. 31, 2013

Assets and liabilities measured on a recurring basis



December 31, 2013
	December 31, 2013		Fair Value
	December 31, 2013		Level 1		Level 2		Level 3
Assets:
Trading securities	$	—	$	—	$	—	$	—
Other equity securities	23,304,321		—		—		23,304,321
Total Assets	$	23,304,321	$	—	$	—	$	23,304,321



November 30, 2012
	November 30, 2012		Fair Value
	November 30, 2012		Level 1		Level 2		Level 3
Assets:
Trading securities	$	55,219,411	$	27,480,191	$	27,739,220	$	—
Other equity securities	19,866,621		—		—		19,866,621
Total Assets	$	75,086,032	$	27,480,191	$	27,739,220	$	19,866,621



December 31, 2012
	December 31, 2012		Fair Value
	December 31, 2012		Level 1		Level 2		Level 3
Assets:
Trading securities	$	4,318,398	$	4,318,398	$	—	$	—
Other equity securities	19,707,126		—		—		19,707,126
Total Assets	$	24,025,524	$	4,318,398	$	—	$	19,707,126

The changes for all Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs



	For the Years Ended						For the One-Month Transition Period Ended
	December 31, 2013			November 30, 2012			December 31, 2012
Fair value beginning balance	$	19,707,126		$	41,856,730		$	19,866,621
Total realized and unrealized gains (losses) included in net income	5,292,890			16,190,428			(159,495		)
Sales	—			(35,919,672		)	—
Return of capital adjustments impacting cost basis of securities	(1,695,695		)	(2,260,865		)	—
Fair value ending balance	$	23,304,321		$	19,866,621		$	19,707,126
Changes in unrealized gains, included in net income, relating to securities still held (1)	$	5,292,890		$	5,018,152		$	(159,495	)

Quantitative table for Valuation Techniques

Significant Unobservable Inputs Used To Value Portfolio Investments

December 31, 2013

Unobservable Inputs

Range

Weighted Average

Assets at Fair Value

Fair Value

Valuation Technique

Low

High

Other equity securities, at fair value

23,304,321

Public company historical EBITDA analysis

Historical EBITDA Valuation Multiples

9.6x

10.6x

10.1x

Public company projected EBITDA analysis

Projected EBITDA Valuation Multiples

8.3x

9.3x

8.8x

M&A company analysis

EV/LTM 2012 EBITDA

8.3x

9.3x

8.8x

Discounted cash flow

Weighted Average Cost of Capital

9.5%

14.0%

11.8%

November 30, 2012

Unobservable Inputs

Range

Weighted Average

Assets at Fair Value

Fair Value

Valuation Technique

Low

High

Other equity securities, at fair value

19,866,621

Public company historical EBITDA analysis

Historical EBITDA Valuation Multiples

9.4x

10.4x

9.95x

Public company projected EBITDA analysis

Projected EBITDA Valuation Multiples

8.1x

9.8x

8.95x

Public company yield analysis

Distributable Cash Flow Yield

8.11%

9.11%

8.61%

M&A company analysis

EV/LTM 2012 EBITDA

9.3x

9.9x

9.6x

Discounted cash flow

Weighted Average Cost of Capital

9.5%

13.0%

11.25%

December 31, 2012

Unobservable Inputs

Range

Weighted Average

Assets at Fair Value

Fair Value

Valuation Technique

Low

High

Other equity securities, at fair value

19,707,126

Public company historical EBITDA analysis

Historical EBITDA Valuation Multiples

9.5x

11.6x

10.6x

Public company projected EBITDA analysis

Projected EBITDA Valuation Multiples

8.8x

10.1x

9.5x

M&A company analysis

EV/LTM 2012 EBITDA

8.9x

10.3x

9.6x

Discounted cash flow

Weighted Average Cost of Capital

9.5%

13.0%

11.3%

Carrying and Fair Value Amounts



Carrying and Fair Value Amounts
	Level within fair value hierarchy	December 31, 2013				November 30, 2012				December 31, 2012
	Level within fair value hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial Assets:
Cash and cash equivalents	Level 1	$	17,963,266	$	17,963,266	$	14,333,456	$	14,333,456	$	17,680,783	$	17,680,783
Escrow receivable	Level 2	$	—	$	—	$	698,729	$	698,729	$	698,729	$	698,729
Financial Liabilities:
Long-term debt	Level 2	$	70,000,000	$	70,000,000	$	—	$	—	$	70,000,000	$	70,000,000
Line of credit	Level 1	$	81,935	$	81,935	$	120,000	$	120,000	$	—	$	—

Condensed Financial Information of Unconsolidated Affiliates [Table Text Block]



Revenues	$	127,356,000	Current assets	$	36,726,000
Operating expenses	$	66,167,000	Noncurrent assets	$	417,998,000
Net income	$	33,360,000	Current liabilities	$	28,285,000
			Noncurrent liabilities	$	191,405,000
			Partner's equity	$	235,034,000

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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-Subparagraph c(2), d, e, f

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details