Annual report pursuant to Section 13 and 15(d)

SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT

v3.6.0.2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
CorEnergy Infrastructure Trust, Inc.
CONDENSED BALANCE SHEETS
 
December 31, 2016
 
December 31, 2015
Assets
 
 
 
 
Leased property, net of accumulated depreciation of $743,458 and $559,078
 
$
4,050,198

 
$
4,234,578

Investments
 
451,603,448

 
458,088,998

Cash and cash equivalents
 
5,933,481

 
10,089,436

Due from subsidiary
 
9,770,878

 
8,317,719

Note receivable from subsidiary
 
128,244,591

 
92,730,000

Deferred costs, net of accumulated amortization of $1,240,297 and $633,687
 
1,548,255

 
2,003,575

Prepaid expenses and other assets
 
173,774

 
116,475

Income tax receivable
 
4,394

 
4,394

Total Assets
 
$
601,329,019

 
$
575,585,175

Liabilities and Equity
 
 
 
 
Secured credit facilities, net
 
80,527,408

 
42,908,842

Unsecured convertible senior notes, net of discount and debt issuance costs of $2,755,105 and $3,576,090
 
111,244,895

 
111,423,910

Accounts payable and other accrued liabilities
 
1,199,616

 
1,300,792

Management fees payable
 
1,735,024

 
1,763,747

Due to affiliate
 
153,640

 
153,640

Total Liabilities
 
$
194,860,583

 
$
157,550,931

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 at December 31, 2016, and December 31, 2015
 
$
56,250,000

 
$
56,250,000

Capital stock, non-convertible, $0.001 par value; 11,886,216 and 11,939,697 shares issued and outstanding at December 31, 2016, and December 31, 2015 (100,000,000 shares authorized)
 
11,886

 
11,940

Additional paid-in capital
 
350,217,746

 
361,581,507

Accumulated other comprehensive income
 
(11,196
)
 
190,797

Total Equity
 
406,468,436

 
418,034,244

Total Liabilities and Equity
 
$
601,329,019

 
$
575,585,175

See accompanying Schedule I Notes to Condensed Financial Statements.
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CorEnergy Infrastructure Trust, Inc. - Continued
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
For the Years Ended December 31,
 
 
2016
 
2015
 
2014
Revenue
 
 
 
 
 
 
Lease revenue
 
$

 
$
638,243

 
$
2,552,976

Earnings from subsidiary
 
32,856,338

 
10,894,003

 
6,730,060

Total Revenue
 
32,856,338

 
11,532,246

 
9,283,036

Expenses
 
 
 
 
 
 
General and administrative
 
2,236,358

 
1,426,598

 
1,061,421

Depreciation expense
 
184,380

 
754,050

 
2,463,062

Amortization expense
 
5,316

 
5,316

 
5,318

Total Expenses
 
2,426,054

 
2,185,964

 
3,529,801

Operating Income
 
$
30,430,284

 
$
9,346,282

 
$
5,753,235

Other Income (Expense)
 
 
 
 
 
 
Net distributions and dividend income
 
$
12,963

 
$
13,542

 
$
13,117

Interest on loans to subsidiaries
 
11,705,465

 
9,294,537

 
1,100,349

Interest income (expense), net
 
(12,485,510
)
 
(6,334,450
)
 
147,155

Total Other Income (Expense)
 
(767,082
)
 
2,973,629

 
1,260,621

Net Income
 
29,663,202

 
12,319,911

 
7,013,856

 
 
 
 
 
 
 
Other comprehensive income:
 
 
 
 
 
 
Changes in fair value of qualifying hedges
 
(201,993
)
 
(262,505
)
 
(324,101
)
Total Comprehensive Income
 
29,461,209

 
$
12,057,406

 
$
6,689,755

See accompanying Schedule I Notes to Condensed Financial Statements.
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - CorEnergy Infrastructure Trust, Inc. - Continued
CONDENSED STATEMENTS OF CASH FLOW
 
For the Years Ended December 31,
 
 
2016
 
2015
 
2014
Net cash provided by (used in) operating activities
 
$
(3,141,286
)
 
$
7,166,380

 
$
(2,047,777
)
Investing Activities
 
 
 
 
 
 
Proceeds from sale of leased property held for sale
 

 
7,678,246

 

Issuance of note to subsidiary
 
(47,414,250
)
 

 
(90,000,000
)
Principal payments received from notes to subsidiaries
 
11,899,659

 
2,570,000

 

Investment in consolidated subsidiaries
 

 
(250,703,944
)
 
(96,570,263
)
Cash distributions from consolidated subsidiaries
 
39,139,897

 
23,392,442

 
18,559,328

Net cash provided by (used in) investing activities
 
$
3,625,306

 
$
(217,063,256
)
 
$
(168,010,935
)
Financing Activities
 
 
 
 
 
 
Debt financing costs
 
(193,000
)
 
(1,439,929
)
 
(1,600,908
)
Net offering proceeds on Series A preferred stock
 

 
54,210,476

 

Net offering proceeds on common stock
 

 
73,184,679

 
141,797,913

Net offering proceeds on convertible debt
 

 
111,262,500

 

Repurchases of common stock
 
(2,041,851
)
 

 

Repurchases of convertible debt
 
(899,960
)
 

 

Dividends paid on Series A preferred stock
 
(4,148,437
)
 
(3,503,125
)
 

Dividends paid on common stock
 
(34,896,727
)
 
(28,528,224
)
 
(15,187,976
)
Advances on revolving line of credit
 
44,000,000

 
42,000,000

 
32,000,000

Payments on revolving line of credit
 

 
(74,000,000
)
 

Proceeds from term debt
 

 
45,000,000

 

Principal payments on term debt
 
(6,460,000
)
 
(1,800,000
)
 

Net cash provided by (used in) financing activities
 
$
(4,639,975
)
 
$
216,386,377

 
$
157,009,029

Net Change in Cash and Cash Equivalents
 
$
(4,155,955
)
 
$
6,489,501

 
$
(13,049,683
)
Cash and Cash Equivalents at beginning of period
 
10,089,436

 
3,599,935

 
16,649,618

Cash and Cash Equivalents at end of period
 
$
5,933,481

 
$
10,089,436

 
$
3,599,935

Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
 
Interest Paid
 
$
11,335,654

 
$
5,254,591

 
$

Income taxes paid (net of refunds)
 
$

 
$
314,728

 
$
192,938

Non-Cash Investing Activities
 
 
 
 
 
 
Change in accounts payable and accrued expenses related to acquisition expenditures
 
$

 
$

 
$
(344,065
)
Non-Cash Financing Activities
 
 
 
 
 
 
Change in accounts payable and accrued expenses related to the issuance of equity
 
$

 
$
(72,685
)
 
$
72,685

Change in accounts payable and accrued expenses related to debt financing costs
 
$

 
$
(30,607
)
 
$
(176,961
)
Reinvestment of distributions by common stockholders in additional common shares
 
$
815,889

 
$
817,915

 
$
140,108

See accompanying Schedule I Notes to Condensed Financial Statements.
NOTES TO SCHEDULE I CONDENSED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
In the parent-company-only financial statements, the Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The parent-company-only financial statements should be read in conjunction with the Company's consolidated financial statements.
NOTE B - DIVIDENDS FROM SUBSIDIARIES
Cash dividends paid to CorEnergy Infrastructure Trust, Inc. from the Company's consolidated subsidiaries were $39.1 million, $23.4 million, and $18.6 million for the years ended December 31, 2016, 2015, and 2014, respectively.
NOTE C - BASIS OF PRESENTATION
The Company reclassified $10.9 million in Earnings from subsidiary in the Condensed Statement of Cash Flows for the 2015 period. The amount previously reported in operating cash flows has been reclassified and presented in investing cash flows in the current year presentation. Line items on the Condensed Statement of Cash Flows impacted by the correction are as follows:
 
 
2015
 Previously Reported
 
Reclassification
 
2015
As
 Adjusted
 
 
 
 
 
 
 
Net Cash provided by operating activities
18,060,382

 
(10,894,002
)
 
7,166,380

 
 
 
 
 
 
 
Investing Activities
 
 
 
 
 
 
Investment in consolidated subsidiaries
(261,597,946
)
 
10,894,002

 
(250,703,944
)
Net Cash used in investing activities
(227,957,258
)
 
10,894,002

 
(217,063,256
)