CorEnergy Infrastructure Trust (NYSE: CORR) today announced its financial results for the fiscal year ended Nov. 30, 2012, on Form 10-K.
Recent Highlights and Subsequent Events
- Net income of $12 million for Nov. 30, 2012
- Completed acquisition and lease-back of Pinedale liquids gathering system (LGS)
- Pinedale LGS positions CorEnergy for REIT qualification in 2013
- Declared first quarter 2013 distribution of $0.125 payable on March 19, 2013 with guidance of no less than $0.50 for 2013
- Changed fiscal year end from Nov. 30 to Dec. 31
“The 2012 calendar year was monumental for CorEnergy,” said Company CEO David Schulte. “We monetized a significant gain in our largest private holding, High Sierra. The proceeds from that sale plus the liquidation of other publicly traded MLP securities were reinvested into our largest REIT-qualifying acquisition to date, the Pinedale LGS. We changed our name to provide clarity that we are no longer an investment company, and we expect to qualify as a REIT for 2013.” Mr. Schulte added, “The real property strategy benefits our stockholders by enabling us to reduce the risk underlying our distribution while creating a solid platform for long-term distribution growth.”
Pinedale LGS Acquisition
Subsequent to the fiscal year ended Nov. 30, 2012, CorEnergy acquired a liquids gathering system located in the Pinedale Field in Wyoming (“Pinedale LGS”) from Ultra Petroleum Corp. (NYSE: UPL) for approximately $228 million. The Company completed a follow on public offering and overallotment option, issuing 14,950,000 shares of common stock and received net proceeds of approximately $84.6 million, a significant portion of which was used to finance the Pinedale LGS acquisition. As part of the Pinedale LGS acquisition financing, CorEnergy also entered into a $70 million secured term credit facility, received a $30 million co-investment from Prudential Capital Group, and sold most of its publicly traded MLP holdings. Subsequent to the follow on offering the Company had 24,140,667 shares outstanding as of Dec. 31, 2012. The Pinedale LGS and associated lease payments now account for a significant portion of CorEnergy’s total assets and total revenue.