Strategy

Uncomplicated Direct Investor Access to U.S. Energy Infrastructure

CorEnergy’s focus on identifying and acquiring critical infrastructure enables energy companies to benefit from the monetization of assets, while remaining operationally and commercially in control. Our Real Estate Investment Trust (REIT) structure provides investors with direct access to energy infrastructure in a tax-efficient manner. Eligible assets include pipelines, storage terminals, offshore platforms, rights-of-way, and electric transmission and distribution lines.

Uncomplicated Direct Investor Access to U.S. Energy Infrastructure

CorEnergy’s REIT structure provides tax-efficient exposure to infrastructure for a wider range of investors than other types of infrastructure investments. REITs issue a 1099 tax form, not a burdensome K-1 form, and do not generate unrelated business taxable income (UBTI) or effectively connected income (ECI) making the investment accessible to institutional, tax exempt and non-U.S. investors.

Our investment approach emphasizes overall asset operational and financial performance with the potential for enhanced returns through incremental asset growth, capital appreciation and minimization of downside risk.

Our process involves:
  • Assessment of the overall energy subsector in which the asset is operated
  • The operating company’s specific competitive position
  • Asset engineering due diligence
  • Analysis of commodity price, supply and demand and regulatory concerns
  • The stability of the asset’s cash flows
  • The prospective operating company’s management track record
  • Our ability to structure an attractive investment

Asset Fundamentals

  • Long-lived assets critical to tenant operations
  • High barriers to entry with strategic locations
  • Contracts provide predictable revenue
  • Limited sensitivity to price/volume changes

Investment Characteristics

  • High cash flow component of total return
  • Attractive potential risk-adjusted returns
  • Diversification vs. other asset classes
  • Potential inflation protection

Operating Partner Characteristics

CorEnergy selects operating partners with a longstanding track record of success, measured by quantitative and qualitative achievement. Our team’s extensive experience as energy operators qualifies us to complete due diligence on each new asset acquisition: from the quality and maintenance of the physical property, to the business’s operational strategy, to the qualifications of the management team.