corenergylogo05.jpg

CorEnergy Announces Fourth Quarter 2019 and Full Year Results
KANSAS CITY, MO - February 26, 2020 - CorEnergy Infrastructure Trust, Inc. (“CorEnergy” or the “Company”) today announced financial results for the fourth quarter 2019 and fiscal year ended December 31, 2019.
Fourth Quarter and Fiscal Year 2019 Performance Summary
Fourth Quarter and Fiscal Year 2019 financial highlights are as follows:
 
For the Three Months Ended
 
For the Year Ended
 
December 31, 2019
 
December 31, 2019
 
 
 
Per Share
 
 
 
Per Share
 
Total
 
Basic
 
Diluted
 
Total
 
Basic
 
Diluted
Net Income (Loss) (Attributable to Common Stockholders)1
$
7,493,948

 
$
0.55

 
$
0.55

 
$
(5,175,973
)
 
$
(0.40
)
 
$
(0.40
)
NAREIT Funds from Operations (NAREIT FFO)1
$
13,006,227

 
$
0.96

 
$
0.93

 
$
16,870,068

 
$
1.29

 
$
1.29

Funds From Operations (FFO)1
$
12,789,733

 
$
0.94

 
$
0.92

 
$
16,857,484

 
$
1.29

 
$
1.29

Adjusted Funds From Operations (AFFO)1
$
13,318,662

 
$
0.98

 
$
0.94

 
$
53,012,786

 
$
4.06

 
$
3.83

Dividends Declared to Common Stockholders
 
 
$
0.75

 
 
 
 
 
$
3.00

 
 
1 Management uses AFFO as a measure of long-term sustainable operational performance. NAREIT FFO, FFO, and AFFO are non-GAAP measures. Reconciliations of NAREIT FFO, FFO and AFFO, as presented, to Net Income (Loss) Attributable to CorEnergy Stockholders are included at the end of this press release. See Note 1 for additional information.
Recent Developments
Maintained dividend: Declared common stock dividend of $0.75 per share ($3.00 annualized) for the fourth quarter 2019, in line with the previous 17 quarterly dividends
“We took steps throughout 2019 to enhance our liquidity and reduce our weighted average cost of capital, which also had the effect of lowering our interest cost and increasing interest income,” said CorEnergy Chief Executive Officer Dave Schulte. “These actions better position us for potential growth transactions, even as producers are finding fewer financing options in the traditional capital markets. We are presently evaluating prospective assets as companies across the energy sector are increasingly turning to alternative financing sources.”
Dividend Declaration
Common Stock: A fourth quarter 2019 dividend of $0.75 per share (or $3.00 per share annualized) was declared for CorEnergy’s common stock. The dividend is payable on
February 28, 2020
, to stockholders of record on February 14, 2020.
Preferred Stock: For the Company’s 7.375% Series A Cumulative Redeemable Preferred Stock, a cash dividend of $0.4609375 per depositary share was declared. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, is payable on February 28, 2020, to stockholders of record on February 14, 2020.





Fiscal Year 2019 Earnings Conference Call
CorEnergy will host a conference call on Thursday, February 27, 2020, at 9:00 a.m. Central Time to discuss its financial results. Please dial into the call at 877-407-8035 (for international, 1-201-689-8035) approximately five to ten minutes prior to the scheduled start time. The call will also be webcast in a listen-only format. A link to the webcast will be accessible at corenergy.reit.
A replay of the call will be available until 9:00 a.m. Central Time on March 27, 2020 by dialing 877-481-4010 (for international, 1-919-882-2331). The Conference ID is 58659. A replay of the conference call will also be available on the Company’s website.
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA), is a real estate investment trust (REIT) that owns critical energy assets, such as pipelines, storage terminals, and transmission and distribution assets. We receive long-term contracted revenue from operators of our assets, primarily under triple-net participating leases. For more information, please visit corenergy.reit.
Forward-Looking Statements
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although CorEnergy believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in CorEnergy’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, CorEnergy does not assume a duty to update any forward-looking statement. In particular, any distribution paid in the future to our stockholders will depend on the actual performance of CorEnergy, its costs of leverage and other operating expenses and will be subject to the approval of CorEnergy’s Board of Directors and compliance with leverage covenants.

Notes
1NAREIT FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses of depreciable properties, real estate-related depreciation and amortization (excluding amortization of deferred financing costs or loan origination costs) and other adjustments for unconsolidated partnerships and non-controlling interests. Adjustments for non-controlling interests are calculated on the same basis. FFO as we have presented it here, is derived by further adjusting NAREIT FFO for distributions received from investment securities, income tax expense (benefit) from investment securities, net distributions and other income and net realized and unrealized gain or loss on other equity securities. CorEnergy defines AFFO as FFO Adjusted for Securities Investment plus (gain) loss on extinguishment of debt, provision for loan (gain) loss, net of tax, transaction costs, amortization of debt issuance costs, amortization of deferred lease costs, accretion of asset retirement obligation, amortization of above market leases, income tax expense (benefit) unrelated to securities investments, non-cash costs associated with derivative instruments, (gain) loss on the settlement of ARO, and certain costs of a nonrecurring nature, less maintenance, capital expenditures (if any), amortization of debt premium, and other adjustments as deemed appropriate by Management. Reconciliations of NAREIT FFO, FFO Adjusted for Securities Investments and AFFO to Net Income (Loss) Attributable to CorEnergy Stockholders are included in the additional financial information attached to this press release.






Contact Information:
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Debbie Hagen or Matt Kreps
877-699-CORR (2677)
info@corenergy.reit

Source: CorEnergy Infrastructure Trust, Inc.







Consolidated Balance Sheets
 
 
 
 
 
December 31, 2019
 
December 31, 2018
Assets
 
 
 
Leased property, net of accumulated depreciation of $105,825,816 and $87,154,095
$
379,211,399

 
$
398,214,355

Property and equipment, net of accumulated depreciation of $19,304,610 and $15,969,346
106,855,677

 
109,881,552

Financing notes and related accrued interest receivable, net of reserve of $600,000 and $600,000
1,235,000

 
1,300,000

Note receivable

 
5,000,000

Cash and cash equivalents
120,863,643

 
69,287,177

Deferred rent receivable
29,858,102

 
25,942,755

Accounts and other receivables
4,143,234

 
5,083,243

Deferred costs, net of accumulated amortization of $1,956,710 and $1,290,236
2,171,969

 
2,838,443

Prepaid expenses and other assets
804,341

 
668,584

Deferred tax asset, net
4,593,561

 
4,948,203

Goodwill
1,718,868

 
1,718,868

Total Assets
$
651,455,794

 
$
624,883,180

Liabilities and Equity
 
 
 
Secured credit facilities, net of debt issuance costs of $158,070 and $210,891
33,785,930

 
37,261,109

Unsecured convertible senior notes, net of discount and debt issuance costs of $3,768,504 and $1,180,729
118,323,496

 
112,777,271

Asset retirement obligation
8,044,200

 
7,956,343

Accounts payable and other accrued liabilities
6,000,981

 
3,493,490

Management fees payable
1,669,950

 
1,831,613

Unearned revenue
6,891,798

 
6,552,049

Total Liabilities
$
174,716,355

 
$
169,871,875

Equity
 
 
 
Series A Cumulative Redeemable Preferred Stock 7.375%, $125,493,175 and $125,555,675 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 50,197 and 50,222 issued and outstanding at December 31, 2019 and December 31, 2018, respectively
$
125,493,175

 
$
125,555,675

Capital stock, non-convertible, $0.001 par value; 13,638,916 and 11,960,225 shares issued and outstanding at December 31, 2019 and December 31, 2018 (100,000,000 shares authorized)
13,639

 
11,960

Additional paid-in capital
360,844,497

 
320,295,969

Retained earnings (deficit)
(9,611,872
)
 
9,147,701

Total Equity
476,739,439

 
455,011,305

Total Liabilities and Equity
$
651,455,794

 
$
624,883,180







Consolidated Statements of Income and Comprehensive Income
 
(Unaudited)
 
 
 
 
 
For the Three Months Ended December 31,
 
For the Years Ended December 31,
 
2019
 
2018
 
2019
 
2018
Revenue
 
 
 
 
 
 
 
Lease revenue
$
16,712,017

 
$
18,487,661

 
$
67,050,506

 
$
72,747,362

Transportation and distribution revenue
4,970,173

 
4,412,378

 
18,778,237

 
16,484,236

Financing revenue
27,295

 

 
116,827

 

Total Revenue
21,709,485

 
22,900,039

 
85,945,570

 
89,231,598

Expenses
 
 
 
 
 
 
 
Transportation and distribution expenses
1,376,152

 
1,861,329

 
5,242,244

 
7,210,748

General and administrative
2,492,346

 
4,161,533

 
10,596,848

 
13,042,847

Depreciation, amortization and ARO accretion expense
5,646,254

 
6,078,582

 
22,581,942

 
24,947,453

Provision for loan gain

 
(536,867
)
 

 
(36,867
)
Total Expenses
9,514,752

 
11,564,577

 
38,421,034

 
45,164,181

Operating Income
$
12,194,733

 
$
11,335,462

 
$
47,524,536

 
$
44,067,417

Other Income (Expense)
 
 
 
 
 
 
 
Net distributions and other income
$
426,797

 
$
41,503

 
$
1,328,853

 
$
106,795

Net realized and unrealized loss on other equity securities

 
(48,028
)
 

 
(1,845,309
)
Interest expense
(2,996,512
)
 
(3,168,583
)
 
(10,578,711
)
 
(12,759,010
)
Gain on the sale of leased property, net

 
11,723,257

 

 
11,723,257

Loss on extinguishment of debt

 

 
(33,960,565
)
 

Total Other Income (Expense)
(2,569,715
)
 
8,548,149

 
(43,210,423
)
 
(2,774,267
)
Income before income taxes
9,625,018

 
19,883,611

 
4,314,113

 
41,293,150

Taxes
 
 
 
 
 
 
 
Current tax benefit
(472,498
)
 
(530,659
)
 
(120,024
)
 
(585,386
)
Deferred tax expense (benefit)
289,788

 
(81,725
)
 
354,642

 
(1,833,340
)
Income tax expense (benefit), net
(182,710
)
 
(612,384
)
 
234,618

 
(2,418,726
)
Net Income attributable to CorEnergy Stockholders
$
9,807,728

 
$
20,495,995

 
$
4,079,495

 
$
43,711,876

Preferred dividend requirements
2,313,780

 
2,357,752

 
9,255,468

 
9,548,377

Net Income (Loss) attributable to Common Stockholders
$
7,493,948

 
$
18,138,243

 
$
(5,175,973
)
 
$
34,163,499

 
 
 
 
 
 
 
 
Earnings (Loss) Per Common Share:
 
 
 
 
 
 
 
Basic
$
0.55

 
$
1.52

 
$
(0.40
)
 
$
2.86

Diluted
$
0.55

 
$
1.32

 
$
(0.40
)
 
$
2.79

Weighted Average Shares of Common Stock Outstanding:
 
 
 
 
 
 
 
Basic
13,549,797

 
11,953,098

 
13,041,613

 
11,935,021

Diluted
13,549,797

 
15,406,371

 
13,041,613

 
15,389,180

Dividends declared per share
$
0.750

 
$
0.750

 
$
3.000

 
$
3.000







Consolidated Statements of Cash Flow
 
For the Years Ended December 31,
 
2019
 
2018
Operating Activities
 
 
 
Net Income
$
4,079,495

 
$
43,711,876

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Deferred income tax, net
354,642

 
(1,845,710
)
Depreciation, amortization and ARO accretion
23,808,083

 
26,361,907

Gain on sale of leased property, net

 
(11,723,257
)
Provision for loan gain

 
(36,867
)
Loss on extinguishment of debt
33,960,565

 

Gain on sale of equipment
(7,390
)
 
(8,416
)
Net realized and unrealized loss on other equity securities

 
1,845,309

Loss on settlement of asset retirement obligation

 
310,941

Common stock issued under directors' compensation plan

 
67,500

Changes in assets and liabilities:
 
 
 
Increase in deferred rent receivables
(3,915,347
)
 
(7,038,848
)
(Increase) decrease in accounts and other receivables
940,009

 
(1,297,207
)
(Increase) decrease in prepaid expenses and other assets
(136,108
)
 
73,505

Increase (decrease) in management fee payable
(161,663
)
 
83,187

Increase in accounts payable and other accrued liabilities
2,517,069

 
476,223

Decrease in income tax liability

 
(2,204,626
)
Increase (decrease) in unearned revenue
339,749

 
(152,777
)
Net cash provided by operating activities
$
61,779,104

 
$
48,622,740

Investing Activities
 
 
 
Proceeds from the sale of leased property

 
55,553,975

Proceeds from sale of other equity securities

 
449,067

Purchases of property and equipment, net
(372,934
)
 
(105,357
)
Proceeds from asset sale
7,000

 
17,999

Principal payment on financing note receivable
65,000

 
236,867

Principal payment on note receivable
5,000,000

 

Return of capital on distributions received

 
663,939

Net cash provided by investing activities
$
4,699,066

 
$
56,816,490

Financing Activities
 
 
 
Debt financing costs
(372,759
)
 
(264,010
)
Cash paid for extinguishment of convertible notes
(78,939,743
)
 

Net offering proceeds on convertible debt
116,355,125

 

Repurchases of Series A preferred stock
(60,550
)
 
(4,275,553
)
Dividends paid on Series A preferred stock
(9,255,121
)
 
(9,587,500
)
Dividends paid on common stock
(39,100,656
)
 
(34,284,059
)
Principal payments on secured credit facilities
(3,528,000
)
 
(3,528,000
)
Net cash used in financing activities
$
(14,901,704
)
 
$
(51,939,122
)
Net Change in Cash and Cash Equivalents
$
51,576,466

 
$
53,500,108

Cash and Cash Equivalents at beginning of period
69,287,177

 
15,787,069

Cash and Cash Equivalents at end of period
$
120,863,643

 
$
69,287,177

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Interest paid
$
6,834,439

 
$
11,200,835

Income taxes paid (net of refunds)
89,433

 
2,136,563

 
 
 
 
Non-Cash Investing Activities
 
 
 
Note receivable in consideration of the sale of leased property
$

 
$
5,000,000







 
For the Years Ended December 31,
 
2019
 
2018
Non-Cash Financing Activities
 
 
 
Change in accounts payable and accrued expenses related to debt financing costs
$

 
$
(255,037
)
Reinvestment of distributions by common stockholders in additional common shares
403,831

 
1,509,830

Common stock issued upon exchange and conversion of convertible notes
66,064,966

 
42,654







NAREIT FFO, FFO Adjusted for Securities Investment and AFFO Reconciliation (Unaudited)
 
For the Three Months Ended December 31,
 
For the Years Ended December 31,
 
2019
 
2018
 
2019
 
2018
Net Income attributable to CorEnergy Stockholders
$
9,807,728

 
$
20,495,995

 
$
4,079,495

 
$
43,711,876

Less:
 
 
 
 
 
 
 
Preferred Dividend Requirements
2,313,780

 
2,357,752

 
9,255,468

 
9,548,377

Net Income (Loss) attributable to Common Stockholders
$
7,493,948

 
$
18,138,243

 
$
(5,175,973
)
 
$
34,163,499

Add:
 
 
 
 
 
 
 
Depreciation
5,512,279

 
5,939,821

 
22,046,041

 
24,355,959

Less:
 
 
 
 
 
 
 
Gain on the sale of leased property, net

 
11,723,257

 

 
11,723,257

NAREIT funds from operations (NAREIT FFO)
$
13,006,227

 
$
12,354,807

 
$
16,870,068

 
$
46,796,201

Add:
 
 
 
 
 
 
 
Distributions received from investment securities
426,797

 
41,503

 
1,328,853

 
106,795

Net realized and unrealized loss on other equity securities

 
48,028

 

 
1,845,309

Less:
 
 
 
 
 
 
 
Net distributions and other income
426,797

 
41,503

 
1,328,853

 
106,795

Income tax benefit from investment securities
216,494

 
190,792

 
12,584

 
682,199

Funds from operations adjusted for securities investments (FFO)
$
12,789,733

 
$
12,212,043

 
$
16,857,484

 
$
47,959,311

Add:
 
 
 
 
 
 
 
Loss of extinguishment of debt

 

 
33,960,565

 

Transaction costs
28,115

 
397,520

 
185,495

 
521,311

Amortization of debt issuance costs
333,055

 
353,637

 
1,226,139

 
1,414,457

Amortization of deferred lease costs
22,983

 
22,983

 
91,932

 
91,932

Accretion of asset retirement obligation
110,992

 
115,778

 
443,969

 
499,562

Loss on settlement of ARO

 
310,941

 

 
310,941

Less:
 
 
 
 
 
 
 
Income tax (expense) benefit
(33,784
)
 
421,592

 
(247,202
)
 
1,736,527

Provision for loan gain

 
536,867

 

 
36,867

Adjusted funds from operations (AFFO)
$
13,318,662

 
$
12,454,443

 
$
53,012,786

 
$
49,024,120

 
 
 
 
 
 
 
 
Weighted Average Shares of Common Stock Outstanding:
 
 
 
 
 
 
 
Basic
13,549,797

 
11,953,098

 
13,041,613

 
11,935,021

Diluted
16,102,310

 
15,406,371

 
15,425,747

 
15,389,180

NAREIT FFO attributable to Common Stockholders
 
 
 
 
 
 
 
Basic
$
0.96

 
$
1.03

 
$
1.29

 
$
3.92

Diluted (1)
$
0.93

 
$
0.94

 
$
1.29

 
$
3.61

FFO attributable to Common Stockholders
 
 
 
 
 
 
 
Basic
$
0.94

 
$
1.02

 
$
1.29

 
$
4.02

Diluted (1)
$
0.92

 
$
0.93

 
$
1.29

 
$
3.69

AFFO attributable to Common Stockholders
 
 
 
 
 
 
 
Basic
$
0.98

 
$
1.04

 
$
4.06

 
$
4.11

Diluted (2)
$
0.94

 
$
0.94

 
$
3.83

 
$
3.70

(1) The year ended December 31, 2019 diluted per share calculations exclude dilutive adjustments for convertible note interest expense, discount amortization and deferred debt issuance amortization because such impact is antidilutive. The three months ended December 31, 2019 and 2018, as well as the year ended December 31, 2018, include these dilutive adjustments. For periods presented without per share dilution, the number of weighted average diluted shares is equal to the number of weighted average basic shares presented.
(2) Diluted per share calculations include a dilutive adjustment for convertible note interest expense.



View differences made from one to another to evaluate Corenergy Infrastructure Trust, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Corenergy Infrastructure Trust, Inc..

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Log in with your credentials

or    

Forgot your details?

Create Account