CorEnergy Announces 2020 Results and Affirms Outlook
CorEnergy Infrastructure Trust (NYSE: CORR, CORRPrA) announced its fourth quarter and full year 2020 financial results, reporting a net loss attributable to common stockholders of $4.98 million ($0.36 per share) for Q4 and $315.26 million ($23.09 per share) for the year. The company declared a dividend of $0.05 per share for Q4 and $0.90 for the year. Notably, CorEnergy acquired Crimson Midstream for $350 million, expanding its pipeline operations in California. The outlook includes projected revenues of $130-$135 million for 2021 and a strategic focus on growth and diversification.
- Acquisition of Crimson Midstream for $350 million expands pipeline operations.
- Expected 2021 revenue between $130-$135 million from combined assets.
- Projected annualized EBITDA of $50-$52 million starting Q2 2021.
- Anticipated annualized SG&A savings of $2 million from manager internalization.
- Initial dividend of $0.20, with potential increase targeting $0.35-$0.40.
- Net loss of $315.26 million ($23.09 per share) for fiscal year 2020.
- Negative Funds From Operations (FFO) of $14.94 million ($1.09 per share) for the year.
CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) (“CorEnergy” or the “Company”) today announced financial results for the fourth quarter 2020 and fiscal year ended December 31, 2020.
Fourth Quarter and Fiscal Year 2020 Performance Summary
Fourth Quarter and Fiscal Year 2020 financial highlights are as follows:
|
For the Three Months Ended |
|
For the Year Ended |
||||||||||||||||||||||||||
|
December 31, 2020 |
|
December 31, 2020 |
||||||||||||||||||||||||||
|
|
|
Per Share |
|
|
|
Per Share |
||||||||||||||||||||||
|
Total |
|
Basic |
|
Diluted |
|
Total |
|
Basic |
|
Diluted |
||||||||||||||||||
Net Loss (Attributable to Common Stockholders)1 |
$ |
(4,981,352 |
) |
|
|
$ |
(0.36 |
) |
|
|
$ |
(0.36 |
) |
|
|
$ |
(315,257,388 |
) |
|
|
$ |
(23.09 |
) |
|
|
$ |
(23.09 |
) |
|
NAREIT Funds from Operations (NAREIT FFO)1 |
$ |
(2,923,236 |
) |
|
|
$ |
(0.21 |
) |
|
|
$ |
(0.21 |
) |
|
|
$ |
(14,800,449 |
) |
|
|
$ |
(1.08 |
) |
|
|
$ |
(1.08 |
) |
|
Funds From Operations (FFO)1 |
$ |
(2,912,869 |
) |
|
|
$ |
(0.21 |
) |
|
|
$ |
(0.21 |
) |
|
|
$ |
(14,939,667 |
) |
|
|
$ |
(1.09 |
) |
|
|
$ |
(1.09 |
) |
|
Adjusted Funds From Operations (AFFO)1 |
$ |
(1,881,530 |
) |
|
|
$ |
(0.14 |
) |
|
|
$ |
(0.14 |
) |
|
|
$ |
7,076,213 |
|
|
|
$ |
0.52 |
|
|
|
$ |
0.52 |
|
|
Dividends Declared to Common Stockholders |
|
|
$ |
0.05 |
|
|
|
|
|
|
|
$ |
0.90 |
|
|
|
|
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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 Loss Attributable to CorEnergy Stockholders are included at the end of this press release. See Note 1 for additional information.
Recent Developments
On February 4, 2021, CorEnergy announced the acquisition of Crimson Midstream Holdings, LLC (“Crimson”), a California Public Utilities Commission (CPUC) regulated crude oil pipeline owner and operator, for
"CorEnergy's acquisition of Crimson California creates a diversified, utility-like energy infrastructure platform serving diverse, credit-worthy customers," said Dave Schulte, Chairman and Chief Executive Officer. "Combined with our stable MoGas and Omega assets, which opened a new interconnect with the Spire STL Pipeline in the fourth quarter, CorEnergy is now positioned to operate or lease long-lived critical energy infrastructure in highly regulated oil and natural gas markets with the ability to adapt and expand our assets as the energy market transforms itself in the coming decades. We see additional upside opportunities as both consumers and producers return to pre-COVID-19 activity levels, through commercial growth opportunities leveraging Crimson’s leading position in the market and extensive real property ownership for renewable fuel storage and distribution, carbon capture potential, and the shift to lower carbon power sourcing. We have created a flexible platform to now focus on acquiring complementary assets to provide scale and diversification across the value chain and geographically. We believe this evolution of our strategy best serves our stakeholders by enabling CorEnergy to provide an initial stable common stock dividend with multiple avenues for growth."
CorEnergy has also agreed to internalize (the “Internalization”) its REIT manager, Corridor InfraTrust Management, LLC (the “Manager”), for consideration of
Outlook
CorEnergy provided the following outlook subsequent to its February 4, 2021 acquisition of Crimson California.
-
Revenue expected to be
$130 -$135 million annualizing both CORR’s legacy assets and Crimson’s assets for 2021 -
Internalization of manager expected to result in approximately
$2.0 million of annualized SG&A savings -
Expected run rate combined EBITDA of
$50 -$52 million on an annualized basis beginning in Q2 2021 -
Maintenance capital expenditures expected to be in the range of
$10 -$11 million in 2021 -
Initial annualized dividend of
$0.20 , targeting$0.35 -$0.40 upon a return to pre-COVID market conditions in California, with near term commercial opportunities providing upside - Total leverage at closing of 4.4x expected EBITDA; senior secured leverage of 2.1x
-
Term Loan amortization scheduled at
$8.0 million per year facilitates deleveraging to a target of < 4.0x by FYE 2022 to create financial flexibility and reduce risk
Dividend Declaration
Common Stock: A fourth quarter 2020 dividend of
Preferred Stock: For the Company’s
Fiscal Year 2020 Earnings Conference Call
CorEnergy will host a conference call on Thursday, March 4, 2021, at 1:00 p.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 April 4, 2021 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 that owns and operates or leases regulated natural gas transmission and distribution 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 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 deferred rent receivable write-off, (gain) loss on extinguishment of debt, provision for loan (gain) loss, net of tax, transaction costs, amortization of debt issuance costs, accretion of asset retirement obligation, 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), income tax expense (benefit) unrelated to securities investments, 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. Additionally, to the extent that forward-looking non-GAAP financial measures are provided, including EBITDA, they are presented on a non-GAAP basis without reconciliations of such forward-looking non-GAAP measures due to the inherent difficulty in forecasting and quantifying certain amounts t
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