Investor FAQs

The company’s objective is to provide stockholders with an attractive risk-adjusted total return, with an emphasis on distributions and distribution growth. We invest primarily in the U.S. energy infrastructure sector, which we believe offers significant opportunities for investment. Our strategy is to provide lease-based financing to energy infrastructure companies, with an expanded investment pool that includes real property assets.

Our common stock is listed on the NYSE under the symbol CORR. For more detailed stock information please visit our stock information page

The terms of our Management Agreement include a quarterly management fee equal to 0.25% (1.00% annualized) of the value of the Company’s average monthly managed assets for such quarter.

The Management Agreement also includes a quarterly incentive fee of 10 percent of the increase in distributions paid over a threshold distribution equal to $0.125 per share per quarter. The Management Agreement also requires at least half of any incentive fees paid be reinvested in the Company’s common stock.

We pursue our investment objective by investing principally in the energy infrastructure sector. We intend to focus primarily on midstream and downstream energy assets, which generally includes the following:

Midstream: Assets that are involved in the gathering, processing, storing and transmission of energy resources and their byproducts, including pipelines, gas processing plants, liquefied natural gas facilities and other energy infrastructure companies.

Downstream: Assets that are used in the refining of energy sources, and the marketing and distribution of such refined products, such as customer ready natural gas, natural gas liquids, propane and gasoline, to end-user customers and the generation, transmission and distribution of electricity including from coal, nuclear, natural gas, agricultural, thermal, solar, wind and biomass.

We anticipate that our targeted real property asset acquisitions will have the following characteristics: Long-life assets with stable cash flows and limited commodity price sensitivity; Experienced management teams with energy infrastructure focus; Fixed Asset-Intensive investments; Limited Technological Risk; and Growth Opportunities.

We pay a quarterly distribution. Record dates are set by the Board of Directors and announced simultaneously with the distribution announcement.

Our investments in securities and real property assets generate cash flow to us from which we expect to pay distributions to stockholders. The Board of Directors will determine the amount of any distribution we pay to stockholders. A REIT is generally required to distribute during the taxable year an amount equal to at least 90% of REIT table income (determined under IRS code section 857(b)(2), without regard for the deduction for dividends paid). We intend to adhere to this requirement in order to qualify as a REIT. For information on the history of our distributions paid, please see the Dividend History portion of our website.

Yes, CorEnergy offers a dividend reinvestment plan. Please click here to view the plan.

Yes. CorEnergy issued 2,250,000 depositary shares of 7.375% Series A Cumulative Redeemable Preferred Stock in a public offering in January 2015. The Preferred Stock pays an annual dividend of $1.84375 per depositary share, 7.375% of the $25.00 liquidation preference. The shares trade on the NYSE under the ticker “CORRPrA.” For further information, please see our Preferred Stock fact sheet.

We believe that we are uniquely positioned to meet the financing needs of companies within the U.S. energy infrastructure sector for the following reasons:

1. Attractive strategic partner for energy and power infrastructure companies. We have specialized knowledge of the economic, regulatory and stakeholder considerations that energy and infrastructure companies seek.  We do not intend to compete with the operations of our lessees and are willing to enter into long-term lease and financing arrangements that suit the requirements and achieve the goals of energy and infrastructure companies.
2. Broad energy and power infrastructure scope. We intend to focus on assets that are not permissible assets to be owned by other specialized energy companies such as MLPs.
3. Efficient capital provider. As a REIT, our stockholders will not receive UBTI or Effectively Connected Income. This offers us access to investors desiring the risk adjusted return profile we provide but unable to invest in other specialized infrastructure vehicles such as direct investment in infrastructure, private equity funds, or MLPs. As a REIT, CORR is expected to have a lower overall cost of capital when compared to certain other energy and power infrastructure acquirers, which should enhance our future cash flows and provide for increased value growth opportunities.
4. Disciplined Investment Philosophy. Our focus in on acquiring real property assets. 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.
5. Experienced management team. The members of our management team have an average of over 26 years of experience in energy operations of multi-national electric and gas utilities, national energy marketing and trading businesses and in optimizing portfolios for real energy asset investments.
6. Flexible Transaction Structuring. We are not subject to many of the regulatory limitations that govern traditional lending institutions such as commercial banks.  We can provide flexibility in structuring asset acquisition transactions. This structuring flexibility enables our leases and debt instruments to fit the cash flow characteristics of the asset that we acquire.  We have substantial experience in structuring investments that balance the needs of an energy infrastructure operating company with appropriate risk control.

We believe energy infrastructure REIT’s have the following attractive investment characteristics:

1. Long-life assets with stable cash flows and limited commodity price sensitivity. We have historically invested in companies that own and operate assets with long useful lives and that generate cash flows by providing critical services primarily to the producers or end-users of energy. We have attempted to limit direct exposure to energy commodity price risk in our portfolio. We have targeted companies that have a majority of their cash flows generated by contractual obligations. Our planned acquisitions of real property assets will continue to reflect these characteristics. In most cases we expect the term of our leases to approximate the asset life. We anticipate our real property assets will generate contracted cash flows with third party entities over the term of the investment, thus providing stable cash flows underlying our leases.
2. Experienced Management Teams with Energy Infrastructure Focus: We have targeted assets operated by management teams that have a track record of success and that often have substantial knowledge and focus in particular segments of the energy infrastructure sector or with certain types of assets. We expect that our management team’s extensive experience and network of business relationships in the energy infrastructure sector will allow us to identify and attract opportunities to acquire real property assets that meet these criteria.
3. Fixed Asset-Intensive Investments: Most of our investments have been made in companies with a relatively significant base of fixed assets. As we directly acquire infrastructure real property assets, our portfolio will reflect the nature of fixed-asset investments. Fixed-asset investments characteristically display such attributes as long-term stability, low volatility, diversification via low correlation and relatively inelastic demand.
4. Limited Technological Risk: We generally do not target acquisition opportunities involving the application of new technologies or significant geological, drilling or development risk.
5. Growth Opportunities: We generally will seek to enter into leases that provide base rent and participating rent over the term of the lease. These increases are expected to be fixed or tied generally to increases in indices such as the Consumer Price Index (“CPI”). We may also attempt to obtain equity enhancements in connection with transactions. These equity enhancements may involve warrants exercisable at a future time to purchase stock of the tenant or borrower or their parent.

Computershare Investor Services
P.O. Box 43078
Providence, R.I. 02940-3078
1-800-426-5523
www.computershare.com

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