CorEnergy Announces Second Quarter 2022 Results
KANSAS CITY, Mo.–(BUSINESS WIRE)–$CORR–CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) today announced financial results for the second quarter, ended June 30, 2022.
Second Quarter 2022 and Recent Highlights
- Reported consolidated revenue of $31.5 million for the three months ended June 30, 2022.
- Generated Net Income of $2.2 million and Adjusted EBITDA of $10.0 million.
- Experienced lower than expected transportation volumes, mitigated by higher than plan revenue from the value of crude oil received as pipeline loss allowance and by cost management. Transportation volumes on the Crimson assets are expected to rebound during the third quarter.
- The Company also announced that Crimson subsidiaries recently submitted applications for 10% rate increases to the California Public Utilities Commission, to become effective during the third quarter 2022. This rate increase mitigates the adverse earnings impact of long term decline in oil production levels.
- Declared a second quarter 2022 Common Stock dividend of $0.05 per share and a 7.375% Series A Cumulative Redeemable Preferred Stock dividend of $0.4609375 per depositary share. Both dividends will be paid on August 31, 2022, to stockholders of record on August 17, 2022.
Management Commentary
“Our second quarter was characterized by steady performance from our predictable MoGas operations but a reduction in volume at Crimson as a result of disruptions in the global oil supply chain. Subsequently in July, a third-party operational issue drove increased volume to our California assets, a benefit which is expected to persist through Q3. We have also initiated a combination of cost efficiency measures and pricing increases on our California pipelines in response to this increased volatility for the near-term. Net of these updates, we are maintaining our 2022 outlook calling for adjusted EBITDA of $42.0-$44.0 million,” said Dave Schulte, Chief Executive Officer.
“We also continue to advance our work to enable the transportation of CO2 as part of the emerging carbon sequestration efforts in California. Carbon capture and associated transportation and sequestration has received increased investment and interest due in part to favorable economic incentives from government entities at both the federal and state levels. We believe CorEnergy’s assets are very well positioned for carbon sequestration projects in California, and could enable us to maximize utilization of our pipeline assets and rights of ways.”
Second Quarter Performance Summary
Second quarter financial highlights are as follows:
|
|
For the Three Months Ended |
||||||||||
|
|
June 30, 2022 |
||||||||||
|
|
|
|
Per Share |
||||||||
|
|
Total |
|
Basic |
|
Diluted |
||||||
|
Net Income (Attributable to Common Stockholders) |
$ |
(1,184,675 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.08 |
) |
|
Net Cash Provided by Operating Activities |
$ |
18,651,187 |
|
|
|
|
|
||||
|
Adjusted Net Income1 |
$ |
2,368,689 |
|
|
|
|
|
||||
|
Cash Available for Distribution (CAD)1 |
$ |
46,415 |
|
|
|
|
|
||||
|
Adjusted EBITDA2 |
$ |
10,028,354 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||||
|
Dividends Declared to Common Stockholders |
|
|
$ |
0.05 |
|
|
|
||||
1 Adjusted Net Income excludes special items of $221 thousand which are transaction costs; however CAD has not been so adjusted. Reconciliations of Adjusted Net Income and CAD, as presented, to Net Income (Loss) and Net Cash Provided by Operating Activities are included at the end of this press release. See Note 1 below for additional information.
2 Adjusted EBITDA excludes special items of $221 thousand which are transaction costs. Reconciliation of Adjusted EBITDA, as presented, to Net Income (Loss) is included at the end of this press release. See Note 2 below for additional information.
Business Development Activities
CorEnergy has identified multiple opportunities for negotiated transactions that could expand the Company’s market reach or REIT qualifying revenue sources, including both traditional infrastructure and potential-alternative uses for its rights of way. The Company will continue to prudently advance these opportunities within our existing footprint or to enhance scale and diversification.
Outlook
CorEnergy maintained its outlook for 2022:
- Expected adjusted EBITDA of $42.0-$44.0 million,
- Maintenance capital expenditures expected to be in the range of $8.0 million to $9.0 million in 2022; quarterly maintenance costs are not expected to be uniform throughout the year due to project timing,
- Maintain $0.20/share annual run rate common dividend subject to Board approval on a quarterly basis.
Dividend and Distribution Declarations
The Company currently expects to characterize at least some portion of its 2022 Common Stock and Preferred Stock dividends as Return of Capital for tax purposes.
Common Stock: A second quarter 2022 dividend of $0.05 per share was declared for CorEnergy’s common stock. The dividend will be paid on August 31, 2022, to stockholders of record on August 17, 2022.
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, will be paid on August 31, 2022, to stockholders of record on August 17, 2022.
Class A-1 Units: Pursuant to the terms of the Crimson transaction, the holders of Crimson Class A-1 Units received a cash distribution of $0.4609375 per unit based on the Company’s declared Series A Preferred dividend.
Class A-2 and Class A-3 Units: Pursuant to the terms of the Crimson transaction, the holders of Crimson Class A-2 and Class A-3 Units did not receive a cash distribution this quarter, since no dividend was declared on the underlying Class B Common Stock.
Second Quarter Results Call
CorEnergy will host a conference call on Thursday, August 11, 2022 at 10:00 a.m. Central Time to discuss its financial results. To join the call, dial +1-973-528-0011 at least five 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 10:00 a.m. Central Time on September 10, 2022, by dialing +1-919-882-2331. The Conference ID is 46172. A webcast replay of the conference call will also be available on the Company’s website, corenergy.reit.
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) is a real estate investment trust that owns and operates or leases regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights-of-way. 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, among others, failure to realize the anticipated benefits of the Crimson transaction; the risk that CPUC approval is not obtained, is delayed or is subject to unanticipated conditions that could adversely affect CorEnergy or the expected benefits of the Crimson transaction; risks related to the uncertainty of the projected financial information with respect to Crimson, and those factors 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
1 Management uses CAD as a measure of long-term sustainable performance. Adjusted Net Income and CAD are non-GAAP measures. Adjusted Net Income represents net income (loss) adjusted for gain on sale of equipment and transaction-related costs. CAD represents Adjusted Net Income adjusted for depreciation, amortization and ARO accretion (cash flows) stock-based compensation, and deferred tax expense (benefit) less transaction-related costs; maintenance capital expenditures; preferred dividend requirements and mandatory debt amortization. Reconciliations of Adjusted Net Income and CAD to Net Income (Loss) and Net Cash Provided By Operating Activities are included in the additional financial information attached to this press release.
2 Management uses Adjusted EBITDA as a measure of operating performance. Adjusted EBITDA represents net income (loss) adjusted for items such as (gain) on the sale of equipment, transaction-related costs, depreciation, amortization and ARO accretion expense, stock-based compensation, income tax expense (benefit) and interest expense. The reconciliation of Adjusted EBITDA to Net Income (Loss) is included in the additional financial information attached to this press release.
|
Consolidated Balance Sheets |
|||||||
|
|
June 30, 2022 |
|
December 31, 2021 |
||||
|
Assets |
(Unaudited) |
|
|
||||
|
Property and equipment, net of accumulated depreciation of $44,870,127 and $37,022,035 (Crimson VIE*: $335,765,423, and $338,452,392, respectively) |
$ |
437,328,908 |
|
|
$ |
441,430,193 |
|
|
Leased property, net of accumulated depreciation of $278,838 and $258,207 |
|
1,247,189 |
|
|
|
1,267,821 |
|
|
Financing notes and related accrued interest receivable, net of reserve of $600,000 and $600,000 |
|
950,034 |
|
|
|
1,036,660 |
|
|
Cash and cash equivalents (Crimson VIE: $501,055 and $1,870,000, respectively) |
|
17,750,255 |
|
|
|
12,496,478 |
|
|
Accounts and other receivables (Crimson VIE: $8,577,791 and $11,291,749, respectively) |
|
12,571,130 |
|
|
|
15,367,389 |
|
|
Due from affiliated companies (Crimson VIE: $231,105 and $676,825, respectively) |
|
231,105 |
|
|
|
676,825 |
|
|
Deferred costs, net of accumulated amortization of $536,197 and $345,775 |
|
606,150 |
|
|
|
796,572 |
|
|
Inventory (Crimson VIE: $4,387,216 and $3,839,865, respectively) |
|
4,540,818 |
|
|
|
3,953,523 |
|
|
Prepaid expenses and other assets (Crimson VIE: $3,931,105 and $5,004,566, respectively) |
|
7,240,815 |
|
|
|
9,075,043 |
|
|
Operating right-of-use assets (Crimson VIE: $5,057,314 and $5,647,631, respectively) |
|
5,374,148 |
|
|
|
6,075,939 |
|
|
Deferred tax asset, net |
|
113,625 |
|
|
|
206,285 |
|
|
Goodwill |
|
16,210,020 |
|
|
|
16,210,020 |
|
|
Total Assets |
$ |
504,164,197 |
|
|
$ |
508,592,748 |
|
|
Liabilities and Equity |
|
|
|
||||
|
Secured credit facilities, net of deferred financing costs of $970,395 and $1,275,244 |
$ |
96,029,605 |
|
|
$ |
99,724,756 |
|
|
Unsecured convertible senior notes, net of discount and debt issuance costs of $2,055,320 and $2,384,170 |
|
115,994,680 |
|
|
|
115,665,830 |
|
|
Accounts payable and other accrued liabilities (Crimson VIE: $8,596,936 and $9,743,904, respectively) |
|
17,399,201 |
|
|
|
17,036,064 |
|
|
Income tax payable |
|
305,205 |
|
|
|
— |
|
|
Due to affiliated companies (Crimson VIE: $343,105 and $648,316, respectively) |
|
343,105 |
|
|
|
648,316 |
|
|
Operating lease liability (Crimson VIE: $4,849,887 and $5,647,036, respectively) |
|
5,138,409 |
|
|
|
6,046,657 |
|
|
Unearned revenue (Crimson VIE $205,790 and $199,405, respectively) |
|
6,120,397 |
|
|
|
5,839,602 |
|
|
Total Liabilities |
$ |
241,330,602 |
|
|
$ |
244,961,225 |
|
|
|
|
|
|
||||
|
Equity |
|
|
|
||||
|
Series A Cumulative Redeemable Preferred Stock 7.375%, $129,525,675 and $129,525,675 liquidation preference ($2,500 per share, $0.001 par value), 10,000,000 authorized; 51,810 and 51,810 issued and outstanding at June 30, 2022 and December 31, 2021, respectively |
$ |
129,525,675 |
|
|
$ |
129,525,675 |
|
|
Common stock, non-convertible, $0.001 par value; 15,060,857 and 14,893,184 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively (100,000,000 shares authorized) |
|
15,060 |
|
|
|
14,893 |
|
|
Class B Common Stock, $0.001 par value; 683,761 and 683,761 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively (11,896,100 shares authorized) |
|
684 |
|
|
|
684 |
|
|
Additional paid-in capital |
|
332,588,181 |
|
|
|
338,302,735 |
|
|
Retained deficit |
|
(323,649,718 |
) |
|
|
(327,157,636 |
) |
|
Total CorEnergy Equity |
|
138,479,882 |
|
|
|
140,686,351 |
|
|
Non-controlling interest (Crimson) |
|
124,353,713 |
|
|
|
122,945,172 |
|
|
Total Equity |
|
262,833,595 |
|
|
|
263,631,523 |
|
|
Total Liabilities and Equity |
$ |
504,164,197 |
|
|
$ |
508,592,748 |
|
|
Consolidated Statements of Operations (Unaudited) |
|||||||||||
|
|
For the Three Months Ended |
||||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
||||||
|
Revenue |
|
|
|
|
|
||||||
|
Transportation and distribution |
$ |
28,112,834 |
|
|
$ |
29,761,354 |
|
|
$ |
28,100,343 |
|
|
Pipeline loss allowance subsequent sales |
|
3,074,436 |
|
|
|
2,731,763 |
|
|
|
2,915,533 |
|
|
Lease |
|
30,825 |
|
|
|
34,225 |
|
|
|
701,525 |
|
|
Other |
|
303,341 |
|
|
|
345,009 |
|
|
|
579,177 |
|
|
Total Revenue |
|
31,521,436 |
|
|
|
32,872,351 |
|
|
|
32,296,578 |
|
|
Expenses |
|
|
|
|
|
||||||
|
Transportation and distribution |
|
14,263,677 |
|
|
|
13,945,843 |
|
|
|
15,363,410 |
|
|
Pipeline loss allowance subsequent sales cost of revenue |
|
2,438,987 |
|
|
|
2,192,649 |
|
|
|
2,223,646 |
|
|
General and administrative |
|
5,276,363 |
|
|
|
5,142,865 |
|
|
|
5,381,654 |
|
|
Depreciation, amortization and ARO accretion |
|
3,992,314 |
|
|
|
3,976,667 |
|
|
|
3,748,453 |
|
|
Total Expenses |
|
25,971,341 |
|
|
|
25,258,024 |
|
|
|
26,717,163 |
|
|
Operating Income |
$ |
5,550,095 |
|
|
$ |
7,614,327 |
|
|
$ |
5,579,415 |
|
|
Other Income (expense) |
|
|
|
|
|
||||||
|
Other income |
$ |
136,023 |
|
|
$ |
120,542 |
|
|
$ |
299,293 |
|
|
Interest expense |
|
(3,342,906 |
) |
|
|
(3,146,855 |
) |
|
|
(3,295,703 |
) |
|
Total Other Expense |
|
(3,206,883 |
) |
|
|
(3,026,313 |
) |
|
|
(2,996,410 |
) |
|
Income before income taxes |
|
2,343,212 |
|
|
|
4,588,014 |
|
|
|
2,583,005 |
|
|
Taxes |
|
|
|
|
|
||||||
|
Current tax expense |
|
156,877 |
|
|
|
151,044 |
|
|
|
20,374 |
|
|
Deferred tax expense |
|
16,209 |
|
|
|
72,213 |
|
|
|
135,222 |
|
|
Income tax expense, net |
|
173,086 |
|
|
|
223,257 |
|
|
|
155,596 |
|
|
Net Income |
|
2,170,126 |
|
|
|
4,364,757 |
|
|
|
2,427,409 |
|
|
Less: Net income attributable to non-controlling interest |
|
966,671 |
|
|
|
2,060,294 |
|
|
|
2,014,870 |
|
|
Net income attributable to CorEnergy |
$ |
1,203,455 |
|
|
$ |
2,304,463 |
|
|
$ |
412,539 |
|
|
Preferred stock dividends |
|
2,388,130 |
|
|
|
2,388,130 |
|
|
|
2,309,672 |
|
|
Net loss attributable to Common Stockholders |
$ |
(1,184,675 |
) |
|
$ |
(83,667 |
) |
|
$ |
(1,897,133 |
) |
|
|
|
|
|
|
|
||||||
|
Net Loss Per Common Share: |
|
|
|
|
|
||||||
|
Basic |
$ |
(0.08 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.14 |
) |
|
Diluted |
$ |
(0.08 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.14 |
) |
|
Weighted Average Shares of Common Stock Outstanding: |
|
|
|
|
|
||||||
|
Basic |
|
15,673,703 |
|
|
|
15,600,926 |
|
|
|
13,659,667 |
|
|
Diluted |
|
15,673,703 |
|
|
|
15,600,926 |
|
|
|
13,659,667 |
|
|
Dividends declared per common share |
$ |
0.050 |
|
|
$ |
0.050 |
|
|
$ |
0.050 |
|
|
Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
|
For the Six Months Ended |
||||||
|
|
June 30, 2022 |
|
June 30, 2021 |
||||
|
Operating Activities |
|
|
|
||||
|
Net income (loss) |
$ |
6,534,883 |
|
|
$ |
(8,266,854 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
|
Deferred income tax, net |
|
88,422 |
|
|
|
108,822 |
|
|
Depreciation, amortization and ARO accretion |
|
8,793,101 |
|
|
|
7,427,544 |
|
|
Loss on impairment and disposal of leased property |
|
— |
|
|
|
5,811,779 |
|
|
Loss on termination of lease |
|
— |
|
|
|
165,644 |
|
|
Loss on extinguishment of debt |
|
— |
|
|
|
861,814 |
|
|
Gain on sale of equipment |
|
(22,678 |
) |
|
|
— |
|
|
Stock-based compensation |
|
151,359 |
|
|
|
— |
|
|
Changes in assets and liabilities: |
|
|
|
||||
|
Accounts and other receivables |
|
1,024,635 |
|
|
|
541,580 |
|
|
Financing note accrued interest receivable |
|
— |
|
|
|
(9,926 |
) |
|
Inventory |
|
(587,295 |
) |
|
|
144,113 |
|
|
Prepaid expenses and other assets |
|
2,487,362 |
|
|
|
(2,349,299 |
) |
|
Due from affiliated companies, net |
|
140,509 |
|
|
|
(184,030 |
) |
|
Management fee payable |
|
— |
|
|
|
(666,856 |
) |
|
Accounts payable and other accrued liabilities |
|
363,137 |
|
|
|
1,740,265 |
|
|
Income tax liability |
|
305,205 |
|
|
|
— |
|
|
Operating lease liability |
|
(908,248 |
) |
|
|
(673,516 |
) |
|
Unearned revenue |
|
280,795 |
|
|
|
(292,738 |
) |
|
Net cash provided by operating activities |
$ |
18,651,187 |
|
|
$ |
4,358,342 |
|
|
Investing Activities |
|
|
|
||||
|
Acquisition of Crimson Midstream Holdings, net of cash acquired |
|
— |
|
|
|
(69,002,053 |
) |
|
Purchases of property and equipment |
|
(4,141,485 |
) |
|
|
(9,275,334 |
) |
|
Proceeds from reimbursable projects |
|
2,103,544 |
|
|
|
— |
|
|
Proceeds from sale of property and equipment |
|
38,075 |
|
|
|
79,600 |
|
|
Proceeds from insurance recovery |
|
— |
|
|
|
60,153 |
|
|
Principal payment on financing note receivable |
|
86,626 |
|
|
|
70,417 |
|
|
Net cash used in investing activities |
|
(1,913,240 |
) |
|
|
(78,067,217 |
) |
|
Financing Activities |
|
|
|
||||
|
Debt financing costs |
|
— |
|
|
|
(2,735,922 |
) |
|
Dividends paid on Series A preferred stock |
|
(4,776,260 |
) |
|
|
(4,619,344 |
) |
|
Dividends paid on Common Stock |
|
(1,492,690 |
) |
|
|
(1,232,357 |
) |
|
Reinvestment of Dividends Paid to Common Stockholders |
|
403,204 |
|
|
|
— |
|
|
Distributions to non-controlling interest |
|
(1,618,424 |
) |
|
|
(604,951 |
) |
|
Advances on revolving line of credit |
|
4,000,000 |
|
|
|
8,000,000 |
|
|
Payments on revolving line of credit |
|
(4,000,000 |
) |
|
|
(7,000,000 |
) |
|
Principal payments on Crimson secured credit facility |
|
(4,000,000 |
) |
|
|
— |
|
|
Net cash used in financing activities |
$ |
(11,484,170 |
) |
|
$ |
(8,192,574 |
) |
|
Net change in Cash and Cash Equivalents |
$ |
5,253,777 |
|
|
$ |
(81,901,449 |
) |
|
Cash and Cash Equivalents at beginning of period |
|
12,496,478 |
|
|
|
99,596,907 |
|
|
Cash and Cash Equivalents at end of period |
$ |
17,750,255 |
|
|
$ |
17,695,458 |
|
|
|
|
|
|
||||
|
Supplemental Disclosure of Cash Flow Information |
|
|
|
||||
|
Interest paid |
$ |
4,999,845 |
|
|
$ |
5,750,876 |
|
|
Income taxes paid (net of refunds) |
|
(12,055 |
) |
|
|
(1,286 |
) |
|
Non-Cash Investing Activities |
|
|
|
||||
|
In-kind consideration for the Grand Isle Gathering System provided as partial consideration for the Crimson Midstream Holdings acquisition |
$ |
— |
|
|
$ |
48,873,169 |
|
|
Crimson Credit Facility assumed and refinanced in connection with the Crimson Midstream Holdings acquisition |
|
— |
|
|
|
105,000,000 |
|
|
Equity consideration attributable to non-controlling interest holder in connection with the Crimson Midstream Holdings acquisition |
|
— |
|
|
|
116,205,762 |
|
|
Purchases of property, plant and equipment in accounts payable and other accrued liabilities |
|
771,180 |
|
|
|
386,009 |
|
|
|
|
|
|
||||
|
Non-Cash Financing Activities |
|
|
|
||||
|
Change in accounts payable and accrued expenses related to debt financing costs |
$ |
— |
|
|
$ |
235,198 |
|
|
Crimson A-2 Units dividends payment-in-kind |
|
|
|
406,000 |
|
||
|
Non-GAAP Financial Measurements (Unaudited) |
||||||||||
| The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted Net Income and CAD: | ||||||||||
|
|
For the Three Months Ended |
|||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|||||
|
Net Income (loss) |
$ |
2,170,126 |
|
|
$ |
4,364,757 |
|
$ |
2,427,409 |
|
|
Add: |
|
|
|
|
|
|||||
|
Transaction costs |
|
221,241 |
|
|
|
300,095 |
|
|
337,948 |
|
|
Less: |
|
|
|
|
|
|||||
|
Gain on the sale of equipment |
|
(22,678 |
) |
|
|
— |
|
|
— |
|
|
Adjusted Net Income, excluding special items |
$ |
2,368,689 |
|
|
$ |
4,664,852 |
|
$ |
2,765,357 |
|
|
Add: |
|
|
|
|
|
|||||
|
Depreciation, amortization and ARO accretion (Cash Flows) |
|
4,404,174 |
|
|
|
4,388,927 |
|
|
4,160,510 |
|
|
Stock-based compensation |
|
151,359 |
|
|
|
— |
|
|
— |
|
|
Deferred tax expense |
|
16,209 |
|
|
|
72,213 |
|
|
135,222 |
|
|
Less: |
|
|
|
|
|
|||||
|
Transaction costs |
|
221,241 |
|
|
|
300,095 |
|
|
337,948 |
|
|
Maintenance capital expenditures |
|
1,475,433 |
|
|
|
1,442,550 |
|
|
2,182,155 |
|
|
Preferred dividend requirements – Series A |
|
2,388,130 |
|
|
|
2,388,130 |
|
|
2,309,672 |
|
|
Preferred dividend requirements – Non-controlling interest |
|
809,212 |
|
|
|
809,212 |
|
|
1,517,779 |
|
|
Mandatory debt amortization |
|
2,000,000 |
|
|
|
2,000,000 |
|
|
2,000,000 |
|
|
Cash Available for Distribution (CAD) |
$ |
46,415 |
|
|
$ |
2,186,005 |
|
$ |
(1,286,465 |
) |
The following table reconciles net cash provided by (used in) operating activities, as reported in the Consolidated Statements of Cash Flows to CAD:
|
|
For the Three Months Ended |
||||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
||||||
|
Net cash provided by operating activities |
$ |
10,070,603 |
|
|
$ |
8,580,584 |
|
|
$ |
6,839,503 |
|
|
Changes in working capital |
|
(3,351,413 |
) |
|
|
245,313 |
|
|
|
(116,362 |
) |
|
Maintenance capital expenditures |
|
(1,475,433 |
) |
|
|
(1,442,550 |
) |
|
|
(2,182,155 |
) |
|
Preferred dividend requirements |
|
(2,388,130 |
) |
|
|
(2,388,130 |
) |
|
|
(2,309,672 |
) |
|
Preferred dividend requirements – non-controlling interest |
|
(809,212 |
) |
|
|
(809,212 |
) |
|
|
(1,517,779 |
) |
|
Mandatory debt amortization included in financing activities |
|
(2,000,000 |
) |
|
|
(2,000,000 |
) |
|
|
(2,000,000 |
) |
|
Cash Available for Distribution (CAD) |
$ |
46,415 |
|
|
$ |
2,186,005 |
|
|
$ |
(1,286,465 |
) |
|
|
|
|
|
|
|
||||||
|
Other Special Items: |
|
|
|
|
|
||||||
|
Transaction costs |
$ |
221,241 |
|
|
$ |
300,095 |
|
|
$ |
337,948 |
|
|
|
|
|
|
|
|
||||||
|
Other Cash Flow Information: |
|
|
|
|
|
||||||
|
Net cash used in investing activities |
$ |
(857,208 |
) |
|
$ |
(1,056,032 |
) |
|
$ |
(5,519,635 |
) |
|
Net cash used in financing activities |
|
(4,749,222 |
) |
|
|
(6,734,948 |
) |
|
|
(2,464,404 |
) |
The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted EBITDA:
|
|
For the Three Months Ended |
||||||||
|
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
||||
|
Net Income |
$ |
2,170,126 |
|
|
$ |
4,364,757 |
|
$ |
2,427,409 |
|
Gain on the sale of equipment |
|
(22,678 |
) |
|
|
— |
|
|
— |
|
Transaction costs |
|
221,241 |
|
|
|
300,095 |
|
|
337,948 |
|
Depreciation, amortization and ARO accretion |
|
3,992,314 |
|
|
|
3,976,667 |
|
|
3,748,453 |
|
Stock-based compensation |
|
151,359 |
|
|
|
— |
|
|
— |
|
Income tax expense, net |
|
173,086 |
|
|
|
223,257 |
|
|
155,596 |
|
Interest expense, net |
|
3,342,906 |
|
|
|
3,146,855 |
|
|
3,295,703 |
|
Adjusted EBITDA |
$ |
10,028,354 |
|
|
$ |
12,011,631 |
|
$ |
9,965,109 |
Contacts
CorEnergy Infrastructure Trust, Inc.
Investor Relations
Debbie Hagen or Matt Kreps
877-699-CORR (2677)
info@corenergy.reit
