CorEnergy Successfully Completes Financial Restructuring
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.
- Successful completion of financial restructuring.
- Emergence from Chapter 11 bankruptcy on June 12, 2024.
- Significantly reduced debt.
- Simplified capital structure.
- Expected return to positive cash flow by 2025.
- Resolution of the San Pablo Bay rate case.
- Increased flexibility to pursue energy transition opportunities.
- Reconstituted board with five new members.
- Cancellation of prior common and preferred equity shares.
- No post-Effective Date trading of the cancelled shares.
- Potential delays or risks in obtaining over-the-counter listing for new shares.
Company Emerges from Chapter 11 with Significantly Less Debt and a Simplified Capital Structure
CorEnergy emerges with significantly less debt and a simplified capital structure which is better aligned to current market conditions and its go-forward objectives. The Company expects that the successful restructuring, combined with the resolution of its San Pablo Bay rate case, will enable it to return to positive cash flow beginning in 2025, while also providing increased flexibility to pursue opportunities tied to energy transition.
“We are pleased to have achieved the goals we set at the beginning of this process,” said Robert Waldron, Chief Executive Officer of CorEnergy. “We are also encouraged by the progress in our cases for rate relief before the California Public Utilities Commission. We look forward to building on the momentum in our business as we continue to provide safe, efficient and reliable transportation for the oil and gas industry in
Shares of CorEnergy’s prior common and preferred equity (the “Shares”) have been cancelled as of the Effective Date, with no action required by shareholders. There will be no post-Effective Date trading of the Shares. There will be no exchange of the Shares, and the Shares do not need to be surrendered. The Company plans to pursue an over-the-counter listing for the new shares in the reorganized CorEnergy in the future. In addition, as of the Effective Date, CorEnergy’s board of directors is comprised of five new members appointed by its new equity holders.
More information on the Company and the restructuring can be found in the investor presentation posted on the Company's website at https://corenergy.reit/.
About CorEnergy Infrastructure Trust, Inc.
CorEnergy Infrastructure Trust, Inc. is a real estate investment trust that owns and operates regulated crude oil pipelines and associated rights-of-way. For more information, please visit https://corenergy.reit/.
Forward-Looking Statements
With the exception of historical information, certain statements contained in this presentation may include "forward-looking statements," which are statements other than statements of historical facts, such as those pertaining to our guidance, targeted leverage ratios, pursuit of growth and energy transition opportunities, anticipated transportation volumes, expected rate increases, expected capital expenditures and other costs, plans to pursue an over-the-counter listing, expected valuation and capital structure upon emergence from bankruptcy, financial projections, expected cost reductions, expected ESG program updates and developments, capital resources and liquidity, and our planned acts relating thereto, and results of operations and financial condition. You can identify forward-looking statements by use of words such as "will," "may," "should," "could," "believes," "expects," "anticipates," "estimates," "intends," "projects," "goals," "objectives," "targets," "predicts," "plans," "seeks," or similar expressions or other comparable terms or discussions of strategy, plans or intentions. 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, changes in economic and business conditions; our ability to realize anticipated benefits of the financial restructuring from our bankruptcy; our ability to successfully execute on our strategy upon emergence from bankruptcy, including our pursuit of growth and energy transition opportunities; our ability to meet applicable requirements for an over-the-counter listing of our shares; our ability to achieve expected cost savings; a decline in oil production levels; competitive and regulatory pressures; failure to realize the anticipated benefits of requested tariff increases; compliance with environmental, safety and other laws; our ability to access debt and equity markets and comply with existing debt covenants; risks associated with climate change; risks associated with changes in tax laws and our ability to continue to qualify as a REIT; among other factors. Such factors and other risks and uncertainties, which could impact the Company and the forward-looking statements contained herein are included in the Company’s public filings and other disclosures. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Other than as required by law, CorEnergy does not assume a duty to update any forward-looking statement.
Source: CorEnergy Infrastructure Trust, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613985630/en/
Media Contact
Teneo
US-CorEnergy-Comms@teneo.com
Investor Relations Contact
Matt Kreps
mkreps@corenergy.reit
Source: CorEnergy Infrastructure Trust, Inc.
FAQ
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