This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CorEnergy Infrastructure Trust Announces Major Steps Toward Energy Infrastructure REIT Qualification

CorEnergy Infrastructure Trust, Inc. (“CorEnergy”) (NYSE: CORR) today announced that it has entered into a definitive agreement to acquire a Liquids Gathering System (“LGS”) from Ultra Petroleum Corp. (NYSE: UPL) for $225 million in cash. The LGS will continue to be operated by UPL under a long-term triple net lease. Located in the Pinedale field in Wyoming, the LGS is a vital component of natural gas production in one of the top five natural gas fields in the U.S.

Prudential Capital Group, through its Dallas-based Energy Finance Group, will contribute $30 million as a co-investor in the acquisition and CorEnergy will contribute $130 million. The remainder of the acquisition cost will be financed with $65 million of non-recourse debt.

The key characteristics of the LGS acquisition satisfy CorEnergy’s targeted strategy and investment criteria including:
  • Stable, fixed asset that is vital to UPL’s operations.
  • Located in the Greater Green River Basin, the Pinedale and Jonah fields were estimated to have had in excess of 48 Tcfe of recoverable natural gas and an estimated reserve life of over 30 years as of December 31, 2011.
  • Less than 25% of the Pinedale field had been developed as of December 31, 2011 and UPL is focused on continued production and expansion in the field.
  • Minimum annual rent of $20 million provides source of steady rental income over 15-year initial term.
  • Additional participating rent based on volume of liquids provides upside potential.
  • UPL has industry leading operating fundamentals, a conservative financial profile and is a recognized low-cost operator.

“The LGS acquisition represents a significant step in our transition to become a real estate investment trust (“REIT”) by acquiring high-quality energy infrastructure assets with reliable cash flows and executing leases with quality operators,” said David Schulte, Chief Executive Officer of CorEnergy. “This asset provides a foundation upon which we plan to build a diversified energy infrastructure REIT. We expect this acquisition to be accretive to our distributions and we intend to recommend to our Board of Directors an increase to our annual distribution from $0.44 to $0.50 upon completion of the transaction.”

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs