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CorEnergy Infrastructure Trust, Inc. (symbol: CORR) is a specialized asset manager focused on providing capital for the acquisition and development of real property infrastructure assets. The company operates through a unique strategy that revolves around critical infrastructure assets known as 'corridors.' These corridors are essential right-of-ways that facilitate the transportation and distribution of energy resources.
CorEnergy's principal business involves financing operating partners via infrastructure REIT (Real Estate Investment Trust) financing. The goal is to deliver attractive, risk-adjusted total returns to its stockholders, emphasizing both distributions and growth.
Recently, CorEnergy announced the completion of the sale of MoGas Pipeline and Omega Pipeline to Spire Inc. for $175 million, subject to customary closing adjustments. MoGas Pipeline, an interstate natural gas pipeline spreading approximately 263 miles, primarily in Missouri, and Omega Pipeline, a 75-mile gas distribution system primarily serving the Fort Leonard Wood Army Base, are now part of Spire's midstream infrastructure. This transaction enhances Spire's ability to serve its growing customer base in Missouri and strengthens their midstream business.
CorEnergy's approach ensures a steady stream of income and growth opportunities for investors by focusing on long-term, income-generating infrastructure assets. The company maintains a strong financial position through strategic acquisitions, partnerships, and careful asset management. It aims to leverage its expertise in infrastructure financing to create sustainable value for its shareholders.
CorEnergy Infrastructure Trust has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy as of June 12, 2024. The company now has significantly reduced debt and a simplified capital structure. This restructuring, along with the resolution of the San Pablo Bay rate case, is expected to help CorEnergy return to positive cash flow by 2025. The company aims to capitalize on energy transition opportunities and continue providing reliable services to the oil and gas industry in California. CorEnergy's prior common and preferred equity shares have been cancelled, and it plans to pursue an over-the-counter listing for its new shares. The board has been reconstituted with five new members appointed by the new equity holders.
CorEnergy announced it has successfully completed its financial restructuring and emerged from Chapter 11 protection, effective June 12, 2024. The company has significantly reduced its debt and simplified its capital structure, aligning better with current market conditions and future objectives. This restructuring, along with a resolution in its San Pablo Bay rate case, is expected to help CorEnergy return to positive cash flow by 2025 and offer more flexibility to explore energy transition opportunities. The prior common and preferred shares have been canceled, and no trading of these shares will occur post-effective date. CorEnergy plans to list new shares over-the-counter in the future, and the board now consists of five new members appointed by new equity holders.
CorEnergy Infrastructure Trust's Chapter 11 Plan of Reorganization has been confirmed by the U.S. Bankruptcy Court for the Western District of Missouri on May 24, 2024. The Plan received significant support from voting creditors and equity holders. The company expects to emerge from bankruptcy on June 12, 2024, with the reorganized common stock being owned by holders of its 5.875% Unsecured Convertible Senior Notes and existing preferred equity. CorEnergy aims to reduce overhead expenses and pursue an over-the-counter listing for its common stock. Key transactions include the sale of MoGas and Omega Pipelines, repayment of secured debt, and cancellation of existing common and preferred stocks, replaced with new common stock. The company will relocate its headquarters to Denver, Colorado, and has a new Board of Directors. The Crimson Pipeline operations continue unaffected, with further decisions awaited in late 2024.
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