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CorEnergy Completes Acquisition Of LGS From Ultra Petroleum

CorEnergy Infrastructure Trust, Inc. (“CorEnergy”) (NYSE: CORR) today announced that it has closed its previously announced acquisition of a Liquids Gathering System (“LGS”) from Ultra Petroleum Corp. (NYSE: UPL). 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.

“We are pleased to have completed our largest acquisition of REIT-qualifying assets to-date,” said Chief Executive Officer, David Schulte. “This is a mission-critical asset, with a high-quality tenant, and it represents a cornerstone for our energy infrastructure REIT strategy. The acquisition is accretive to our distribution and our Board of Directors has indicated that it intends to approve an increase in our quarterly distribution from $0.11 to $0.125 for the first full quarter following the acquisition. The REIT structure provides our investors direct access to U.S. energy infrastructure in an attractive vehicle with transparent cash flow.”

Transaction Financing

CorEnergy paid $205 million in cash and approximately $24 million in certain other equity securities for the purchase of the LGS from UPL. The cash portion of the acquisition was funded with the net proceeds of CorEnergy’s $78 million common stock offering, approximately $26 million from the sale of CorEnergy’s publicly-traded master limited partnership equity securities, approximately $5 million of cash from CorEnergy’s balance sheet, a $30 million concurrent co-investment from Prudential Capital Group and $70 million in debt financing.

As a result of the transaction, CorEnergy’s ratio of total debt to total assets is approximately 25 percent. CorEnergy expects to maintain a debt to asset ratio of between 25 and 50 percent.

REIT Status

The LGS now accounts for approximately 81 percent of CorEnergy’s total assets on a pro forma basis as of August 31, 2012 and the LGS lease payments account for approximately 66 percent of total revenue on a pro forma basis for the nine months ended August 31, 2012.

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