Business Wire | Nov 9, 2021 08:00AM EST

CorEnergy Announces Third Quarter 2021 Results

Nov. 09, 2021

KANSAS CITY, Mo.--(BUSINESS WIRE)--Nov. 09, 2021--CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) ("CorEnergy" or the "Company") today announced financial results for the third quarter, ended September 30, 2021.

Third Quarter 2021 and Recent Highlights

* Reported consolidated revenue of $37.0 million for the three months ended September 30, 2021 including a nonrecurring $2.2 million pipeline measurement gain. * Average transported crude oil volumes increased 1.6% from second quarter. * Declared a third quarter 2021 Common Stock dividend of $0.05 per share and a 7.375% Series A Cumulative Redeemable Preferred Stock dividend of $0.4609375 per depositary share. Both dividends will be paid on November 30, 2021, to stockholders of record on November 16, 2021.

Management Commentary

"Production volumes improved slightly in the third quarter, as did volumes transported on Crimson's pipelines, but remained below pre-COVID levels primarily due to permitting constraints in California and producers electing to return capital to stakeholders," said Dave Schulte, Chief Executive Officer. "Since the crude production rebound and additional commercial opportunities did not materialize as quickly as anticipated, management is reducing our outlook for the back half of 2021 but believe we will continue to earn and pay our $0.20 annualized common dividend. When these constraints are relaxed, current crude prices make underlying production economics attractive, potentially leading to additional volume growth."

"As a result of the shareholder vote, a substantial portion of the equity used in the Crimson and internalization transactions is held by management and subordinated to our common shares, demonstrating our confidence in the long-term financial performance of the business. We believe that CorEnergy has become an industry leading platform to own infrastructure assets, including energy transition opportunities, providing stockholders with dividend stability and prospects for modest long-term growth."

Third Quarter Performance Summary

Third quarter 2021 reflects full impact of the activity from Crimson. Third quarter financial highlights are as follows:

For the Three Months Ended

September 30, 2021

Per Share

Total^3 Basic Diluted

Net Income (Attributable to Common Stockholders) $ 376,156 $ 0.02 $ 0.02

Net Cash Provided by Operating Activities $ 7,879,944

Adjusted Net Income^1,3 $ 6,116,491

Cash Available for Distribution (CAD)^1,3 $ 3,165,203

Adjusted EBITDA^2,3 $ 13,265,903



Dividends Declared to Common Stockholders $ 0.05

1 Adjusted Net Income excludes special items of $213 thousand which are transaction costs; however CAD has not been so adjusted. Reconciliations of Adjusted Net Income and CAD, as presented, to Net Income (Loss) and Net Cash Provided by Operating Activities are included at the end of this press release. See Note 1 below for additional information.

2 Adjusted EBITDA excludes special items of $213 thousand which are transaction costs. Reconciliation of Adjusted EBITDA, as presented, to Net Income (Loss) is included at the end of this press release. See Note 2 below for additional information.

3 Our third quarter results include a $2.2 million pipeline measurement gain which is not recurring. Over time, we expect the measurement gains and losses to cancel out.

Business Development Activities

CorEnergy maintains an active pipeline of business development opportunities, including traditional infrastructure and potential-alternative uses for its rights of way. The Company closely evaluates potential opportunities to ensure alignment with REIT qualifying business activities. CorEnergy has identified multiple opportunities for negotiated transactions that could expand the Company's market reach or REIT qualifying revenue sources. The Company will continue to prudently advance these opportunities.

Outlook

We have reduced our previously provided outlook for the second half of 2021 to annualized EBITDA of $42-44 million (excluding the $2.2 million nonrecurring measurement gain) as a result of current market conditions, including natural gas cost for heating, plus the impact of the pipeline shut-in due to the off-shore oil spill in California. The Company expects to provide its 2022 outlook no later than in connection with the filing of its Form 10-K for 2021.

Dividend and Distribution Declarations

The Company currently expects all of its 2021 Common Stock and Preferred Stock dividends will be characterized as Return of Capital for tax purposes.

Common Stock: A third quarter 2021 dividend of $0.05 per share was declared for CorEnergy's common stock. The dividend will be paid on November 30, 2021, to stockholders of record on November 16, 2021.

Preferred Stock: For the Company's 7.375% Series A Cumulative Redeemable Preferred Stock, a cash dividend of $0.4609375 per depositary share was declared. The preferred stock dividend, which equates to an annual dividend payment of $1.84375 per depositary share, will be paid on November 30, 2021, to stockholders of record on November 16, 2021.

Class A-1 Units: Pursuant to the terms of the Crimson transaction, the holders of Crimson Class A-1 Units received a cash distribution of $0.4609375 per unit based on the Company's declared Series A Preferred dividend.

Class A-2 and Class A-3 Units: Pursuant to the terms of the Crimson transaction, the holders of Crimson Class A-2 and Class A-3 Units did not receive a cash distribution this quarter, since no dividend was declared on the underlying Class B Common Stock.

Third Quarter Results Call

CorEnergy will host a conference call on Tuesday, November 9, 2021 at 10:00 a.m. Central Time to discuss its financial results. Please dial into the call at +1-201-689-8035 at least five 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 10:00 a.m. Central Time on December 9, 2021, by dialing +1-919-882-2331. The Conference ID is 40743. A webcast replay of the conference call will also be available on the Company's website, corenergy.reit.

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 lines 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, among others, failure to realize the anticipated benefits of the Crimson transaction; the risk that CPUC approval is not obtained, is delayed or is subject to unanticipated conditions that could adversely affect CorEnergy or the expected benefits of the Crimson transaction; risks related to the uncertainty of the projected financial information with respect to Crimson, and those factors 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

1 Management uses CAD as a measure of long-term sustainable performance. Adjusted Net Income and CAD are non-GAAP measures. Adjusted Net Income represents net income (loss) adjusted for gain on sale of equipment and transaction-related costs. CAD represents Adjusted Net Income adjusted for depreciation, amortization and ARO accretion (cash flows) and deferred tax expense (benefit) less transaction costs; maintenance capital expenditures; preferred dividend requirements and mandatory debt amortization. Reconciliations of Adjusted Net Income and CAD to Net Income (Loss) and Net Cash Provided By Operating Activities are included in the additional financial information attached to this press release.

2 Management uses Adjusted EBITDA as a measure of operating performance. Adjusted EBITDA represents net income (loss) adjusted for items such as gain on sale of equipment; and transaction-related costs. Adjusted EBITDA is further adjusted for depreciation, amortization and ARO accretion expense; income tax expense (benefit) and interest expense. The reconciliation of Adjusted EBITDA to Net Income (Loss) is included in the additional financial information attached to this press release.

Consolidated Balance Sheets



September 30, December 31, 2021 2020

Assets (Unaudited)

Property and equipment, net of accumulateddepreciation of $32,592,641 and $22,580,810 $ 445,250,237 $ 106,224,598 (Crimson VIE: $341,422,699, and $0,respectively)

Leased property, net of accumulated 1,278,135 64,938,010 depreciation of $247,893 and $6,832,167

Financing notes and related accruedinterest receivable, net of reserve of 1,078,072 1,209,736 $600,000 and $600,000

Cash and cash equivalents (Crimson VIE: 15,091,957 99,596,907 $4,129,699 and $0, respectively)

Accounts and other receivables (Crimson 14,573,047 3,675,977 VIE: $11,426,137 and $0, respectively)

Due from affiliated companies (Crimson VIE: 953,806 - $953,806 and $0, respectively)

Deferred costs, net of accumulated 891,783 1,077,883 amortization of $250,564 and $2,130,334

Inventory (Crimson VIE: $3,229,161 and $0, 3,342,111 87,940 respectively)

Prepaid expenses and other assets (Crimson 10,550,792 2,054,804 VIE: $5,159,383 and $0, respectively)

Operating right-of-use assets (Crimson VIE: 6,433,505 85,879 $5,950,501 and $0, respectively)

Deferred tax asset, net 4,060,239 4,282,576

Goodwill 16,210,020 1,718,868

Total Assets $ 519,713,704 $ 284,953,178

Liabilities and Equity

Secured credit facilities, net of deferred $ 102,572,333 $ - financing costs of $1,427,667 and $0

Unsecured convertible senior notes, net ofdiscount and debt issuance costs of 115,501,404 115,008,130 $2,548,595 and $3,041,870

Asset retirement obligation - 8,762,579

Accounts payable and other accruedliabilities (Crimson VIE: $14,416,975 and 20,901,358 4,628,847 $0, respectively)

Management fees payable - 971,626

Income tax liability 33,027 -

Due to affiliated companies (Crimson VIE: 765,228 - $765,228 and $0, respectively)

Operating lease liability (Crimson VIE: 6,281,014 56,441 $5,826,885 and $0, respectively)

Unearned revenue (Crimson VIE $315,000 and 6,001,622 6,125,728 $0, respectively)

Total Liabilities $ 252,055,986 $ 135,553,351

Commitments and Contingencies

Equity

Series A Cumulative Redeemable PreferredStock 7.375%, $129,525,675 and $125,270,350liquidation preference ($2,500 per share,$0.001 par value), 10,000,000 authorized; $ 129,525,675 $ 125,270,350 51,810 and 50,108 issued and outstanding atSeptember 30, 2021 and December 31, 2020,respectively

Common stock, non-convertible, $0.001 parvalue; 14,866,799 and 13,651,521 sharesissued and outstanding at September 30, 14,866 13,652 2021 and December 31, 2020, respectively(100,000,000 shares authorized)

Class B Common Stock, $0.001 par value;683,761 and 0 shares issued and outstandingat September 30, 2021 and December 31, 684 - 2020, respectively (11,896,100 sharesauthorized)

Additional paid-in capital 341,331,070 339,742,380

Retained deficit (324,749,301 ) (315,626,555 )

Total CorEnergy Equity 146,122,994 149,399,827

Non-controlling interest (Crimson) 121,534,724 -

Total Equity 267,657,718 149,399,827

Total Liabilities and Equity $ 519,713,704 $ 284,953,178

Consolidated Statements of Operations (Unaudited)

For the Three Months Ended

September 30, 2021

September 30, 2020

Revenue

Transportation and distribution revenue

$

34,286,394

$

4,573,155

Pipeline loss allowance subsequent sales

2,124,581

-

Lease revenue

32,915

20,126

Other revenue

584,992

32,099

Total Revenue

37,028,882

4,625,380

Expenses

Transportation and distribution expenses

16,089,414

1,438,443

Pipeline loss allowance subsequent sales cost of revenue

2,718,038

-

General and administrative

5,156,087

2,793,568

Depreciation, amortization and ARO accretion expense

3,690,856

2,169,806

Total Expenses

27,654,395

6,401,817

Operating Income (Loss)

$

9,374,487

$

(1,776,437

)

Other Income (Expense)

Other income

$

4,040

$

29,654

Interest expense

(3,351,967

)

(2,247,643

)

Total Other Expense

(3,347,927

)

(2,217,989

)

Income (Loss) before income taxes

6,026,560

(3,994,426

)

Taxes

Current tax benefit

(6,927

)

(2,431

)

Deferred tax expense (benefit)

113,516

(72,897

)

Income tax expense (benefit), net

106,589

(75,328

)

Net income (Loss)

5,919,971

(3,919,098

)

Less: Net income attributable to non-controlling interest

3,155,685

-

Net income (Loss) attributable to CorEnergy Stockholders

$

2,764,286

$

(3,919,098

)

Preferred dividend requirements

2,388,130

2,309,672

Net income (loss) attributable to Common Stockholders

$

376,156

$

(6,228,770

)

Earnings (loss) Per Common Share:

Basic

$

0.02

$

(0.46

)

Diluted

$

0.02

$

(0.46

)

Weighted Average Shares of Common Stock Outstanding:

Basic

15,426,226

13,651,521

Diluted

15,426,226

13,651,521

Dividends declared per share

$

0.050

$

0.050

Consolidated Statements of Operations (Unaudited)



For the Three Months Ended

September 30, September 30, 2021 2020

Revenue

Transportation and distribution revenue $ 34,286,394 $ 4,573,155

Pipeline loss allowance subsequent sales 2,124,581 -

Lease revenue 32,915 20,126

Other revenue 584,992 32,099

Total Revenue 37,028,882 4,625,380

Expenses

Transportation and distribution expenses 16,089,414 1,438,443

Pipeline loss allowance subsequent sales cost 2,718,038 - of revenue

General and administrative 5,156,087 2,793,568

Depreciation, amortization and ARO accretion 3,690,856 2,169,806 expense

Total Expenses 27,654,395 6,401,817

Operating Income (Loss) $ 9,374,487 $ (1,776,437 )

Other Income (Expense)

Other income $ 4,040 $ 29,654

Interest expense (3,351,967 ) (2,247,643 )

Total Other Expense (3,347,927 ) (2,217,989 )

Income (Loss) before income taxes 6,026,560 (3,994,426 )

Taxes

Current tax benefit (6,927 ) (2,431 )

Deferred tax expense (benefit) 113,516 (72,897 )

Income tax expense (benefit), net 106,589 (75,328 )

Net income (Loss) 5,919,971 (3,919,098 )

Less: Net income attributable to 3,155,685 - non-controlling interest

Net income (Loss) attributable to CorEnergy $ 2,764,286 $ (3,919,098 )Stockholders

Preferred dividend requirements 2,388,130 2,309,672

Net income (loss) attributable to Common $ 376,156 $ (6,228,770 )Stockholders



Earnings (loss) Per Common Share:

Basic $ 0.02 $ (0.46 )

Diluted $ 0.02 $ (0.46 )

Weighted Average Shares of Common Stock Outstanding:

Basic 15,426,226 13,651,521

Diluted 15,426,226 13,651,521

Dividends declared per share $ 0.050 $ 0.050

Consolidated Statements of Cash Flows (Unaudited)

For the Nine Months Ended

September 30, 2021

September 30, 2020

Operating Activities

Net loss

$

(2,346,883

)

$

(303,395,899

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Deferred income tax, net

222,337

225,628

Depreciation, amortization and ARO accretion

11,530,460

12,441,775

Loss on impairment of leased property

-

140,268,379

Loss on impairment and disposal of leased property

5,811,779

146,537,547

Loss on termination of lease

165,644

458,297

Deferred rent receivable write-off, noncash

-

30,105,820

(Gain) loss on extinguishment of debt

861,814

(11,549,968

)

Non-cash lease expense

373,847

-

Gain on sale of equipment

(16,508

)

(3,542

)

Changes in assets and liabilities:

Deferred rent receivable

-

(247,718

)

Accounts and other receivables

702,251

1,040,064

Financing note accrued interest receivable

(8,780

)

(11,293

)

Inventory

(1,572,534

)

-

Prepaid expenses and other assets

(2,409,857

)

(1,056,726

)

Due from affiliated companies, net

(188,578

)

-

Management fee payable

(971,626

)

(700,194

)

Accounts payable and other accrued liabilities

987,899

(2,551,374

)

Income tax liability

33,027

-

Operating lease liability

(496,900

)

-

Unearned revenue

(439,106

)

(838,422

)

Net cash provided by operating activities

12,238,286

10,722,374

Investing Activities

Acquisition of Crimson Midstream Holdings, net of cash acquired

(69,002,053

)

-

Acquisition of Corridor InfraTrust Management, net of cash acquired

952,487

-

Purchases of property and equipment, net

(15,024,412

)

(885,711

)

Proceeds from sale of property and equipment

97,210

7,500

Proceeds from insurance recovery

60,153

-

Principal payment on financing note receivable

113,595

43,333

Decrease in financing note receivable

26,849

-

Net cash used in investing activities

(82,776,171

)

(834,878

)

Financing Activities

Debt financing costs

(2,735,922

)

-

Repurchases of Series A preferred stock

-

(161,997

)

Dividends paid on Series A preferred stock

(7,007,474

)

(6,933,124

)

Dividends paid on Common Stock

(1,799,268

)

(11,603,792

)

Common stock issued under director's compensation plan

22,500

-

Cash paid for maturity of convertible notes

-

(1,676,000

)

Cash paid for repurchase of convertible notes

-

(1,316,250

)

Cash paid for settlement of Pinedale Secured Credit Facility

-

(3,074,572

)

Distributions to non-controlling interest

(1,446,901

)

-

Advances on revolving line of credit

19,000,000

-

Payments on revolving line of credit

(16,000,000

)

-

Principal payments on Crimson secured credit facility

(4,000,000

)

-

Principal payments on secured credit facilities

-

(1,764,000

)

Net cash used in financing activities

$

(13,967,065

)

$

(26,529,735

)

Net change in Cash and Cash Equivalents

$

(84,504,950

)

$

(16,642,239

)

Cash and Cash Equivalents at beginning of period

99,596,907

120,863,643

Cash and Cash Equivalents at end of period

$

15,091,957

$

104,221,404

Supplemental Disclosure of Cash Flow Information

Interest paid

$

10,206,280

$

9,066,335

Income taxes paid (net of refunds)

(635,730

)

(466,382

)

Non-Cash Investing Activities

Proceeds from sale of leased property provided directly to secured lender

$

-

$

18,000,000

In-kind consideration for the Grand Isle Gathering System provided as partial consideration for the Crimson Midstream Holdings acquisition

48,873,169

-

Crimson Credit Facility assumed and refinanced in connection with the Crimson Midstream Holdings acquisition

105,000,000

-

Equity consideration attributable to non-controlling interest holder in connection with the Crimson Midstream Holdings acquisition

116,205,762

-

Purchases of property, plant and equipment in accounts payable and other accrued liabilities

-

313,859

Series A preferred stock issued due to internalization transaction

4,245,112

-

Common Stock issued due to internalization transaction

7,096,153

-

Class B Common Stock issued due to internalization transaction

3,288,890

-

Non-Cash Financing Activities

Change in accounts payable and accrued expenses related to debt financing costs

$

235,198

$

-

Common Stock issued upon exchange and conversion of convertible notes

-

419,129

Proceeds from sale of leased property used in settlement of Pinedale Secured Credit Facility

-

(18,000,000

)

Crimson A-2 Units dividends payment in kind

610,353

-

Non-GAAP Financial Measurements (Unaudited)

The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted Net Income (Loss) and CAD:

Consolidated Statements of Cash Flows (Unaudited)



For the Nine Months Ended

September 30, September 30, 2021 2020

Operating Activities

Net loss $ (2,346,883 ) $ (303,395,899 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Deferred income tax, net 222,337 225,628

Depreciation, amortization and ARO accretion 11,530,460 12,441,775

Loss on impairment of leased property - 140,268,379

Loss on impairment and disposal of leased 5,811,779 146,537,547 property

Loss on termination of lease 165,644 458,297

Deferred rent receivable write-off, noncash - 30,105,820

(Gain) loss on extinguishment of debt 861,814 (11,549,968 )

Non-cash lease expense 373,847 -

Gain on sale of equipment (16,508 ) (3,542 )

Changes in assets and liabilities:

Deferred rent receivable - (247,718 )

Accounts and other receivables 702,251 1,040,064

Financing note accrued interest receivable (8,780 ) (11,293 )

Inventory (1,572,534 ) -

Prepaid expenses and other assets (2,409,857 ) (1,056,726 )

Due from affiliated companies, net (188,578 ) -

Management fee payable (971,626 ) (700,194 )

Accounts payable and other accrued 987,899 (2,551,374 )liabilities

Income tax liability 33,027 -

Operating lease liability (496,900 ) -

Unearned revenue (439,106 ) (838,422 )

Net cash provided by operating activities 12,238,286 10,722,374

Investing Activities

Acquisition of Crimson Midstream Holdings, (69,002,053 ) - net of cash acquired

Acquisition of Corridor InfraTrust 952,487 - Management, net of cash acquired

Purchases of property and equipment, net (15,024,412 ) (885,711 )

Proceeds from sale of property and equipment 97,210 7,500

Proceeds from insurance recovery 60,153 -

Principal payment on financing note 113,595 43,333 receivable

Decrease in financing note receivable 26,849 -

Net cash used in investing activities (82,776,171 ) (834,878 )

Financing Activities

Debt financing costs (2,735,922 ) -

Repurchases of Series A preferred stock - (161,997 )

Dividends paid on Series A preferred stock (7,007,474 ) (6,933,124 )

Dividends paid on Common Stock (1,799,268 ) (11,603,792 )

Common stock issued under director's 22,500 - compensation plan

Cash paid for maturity of convertible notes - (1,676,000 )

Cash paid for repurchase of convertible - (1,316,250 )notes

Cash paid for settlement of Pinedale Secured - (3,074,572 )Credit Facility

Distributions to non-controlling interest (1,446,901 ) -

Advances on revolving line of credit 19,000,000 -

Payments on revolving line of credit (16,000,000 ) -

Principal payments on Crimson secured credit (4,000,000 ) - facility

Principal payments on secured credit - (1,764,000 )facilities

Net cash used in financing activities $ (13,967,065 ) $ (26,529,735 )

Net change in Cash and Cash Equivalents $ (84,504,950 ) $ (16,642,239 )

Cash and Cash Equivalents at beginning of 99,596,907 120,863,643 period

Cash and Cash Equivalents at end of period $ 15,091,957 $ 104,221,404

Supplemental Disclosure of Cash Flow Information

Interest paid $ 10,206,280 $ 9,066,335

Income taxes paid (net of refunds) (635,730 ) (466,382 )



Non-Cash Investing Activities

Proceeds from sale of leased property $ - $ 18,000,000 provided directly to secured lender

In-kind consideration for the Grand IsleGathering System provided as partial 48,873,169 - consideration for the Crimson MidstreamHoldings acquisition

Crimson Credit Facility assumed andrefinanced in connection with the Crimson 105,000,000 - Midstream Holdings acquisition

Equity consideration attributable tonon-controlling interest holder in 116,205,762 - connection with the Crimson MidstreamHoldings acquisition

Purchases of property, plant and equipmentin accounts payable and other accrued - 313,859 liabilities

Series A preferred stock issued due to 4,245,112 - internalization transaction

Common Stock issued due to internalization 7,096,153 - transaction

Class B Common Stock issued due to 3,288,890 - internalization transaction



Non-Cash Financing Activities

Change in accounts payable and accrued $ 235,198 $ - expenses related to debt financing costs

Common Stock issued upon exchange and - 419,129 conversion of convertible notes

Proceeds from sale of leased property usedin settlement of Pinedale Secured Credit - (18,000,000 )Facility

Crimson A-2 Units dividends payment in kind 610,353 -

Non-GAAP Financial Measurements (Unaudited)

The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted Net Income (Loss) and CAD:

For the Three Months Ended

September 30, September 30, 2021 2020

Net Income (loss) $ 5,919,971 $ (3,919,098 )

Add:

Gain on the sale of equipment (16,508 ) -

Transaction costs 213,028 946,817

Adjusted Net Income (Loss), excluding special 6,116,491 (2,972,281 )items

Add:

Depreciation, amortization and ARO accretion 4,102,916 2,477,867 (Cash Flows)

Deferred tax expense (benefit) 113,516 (72,897 )

Less:

Transaction costs 213,028 946,817

Maintenance capital expenditures 1,757,350 -

Preferred dividend requirements - Series A 2,388,130 2,309,672

Preferred dividend requirements - 809,212 - Non-controlling interest

Mandatory debt amortization $ 2,000,000 $ -

Cash Available for Distribution (CAD) $ 3,165,203 $ (3,823,800 )

The following table reconciles net cash provided by operating activities, as reported in the Consolidated Statements of Cash Flows to CAD:

For the Three Months Ended

September 30, September 30, 2021 2020

Net cash provided by (used in) operating $ 7,879,944 $ (5,699,427 )activities

Changes in working capital 2,174,551 4,185,299

Non-cash lease expense 65,400 -

Maintenance capital expenditures (1,757,350 ) -

Preferred dividend requirements (2,388,130 ) (2,309,672 )

Preferred dividend requirements - (809,212 ) - non-controlling interest

Mandatory debt amortization included in $ (2,000,000 ) $ - financing activities

Cash Available for Distribution (CAD) 3,165,203 (3,823,800 )



Other Special Items:

Transaction costs $ 213,028 $ 946,817



Other Cash Flow Information:

Net cash used in investing activities (4,708,954 ) (800,567 )

Net cash used in financing activities (5,774,491 ) (2,992,248 )

The following table presents a reconciliation of Net Income (Loss), as reported in the Consolidated Statements of Operations, to Adjusted EBITDA:

For the Three Months Ended

September 30, September 30, 2021 2020

Net Income (loss) $ 5,919,971 $ (3,919,098 )

Add:

Gain on the sale of equipment (16,508 ) -

Transaction costs 213,028 946,817

Depreciation, amortization and ARO accretion 3,690,856 2,169,806 expense

Income tax expense (benefit), net 106,589 (75,328 )

Interest expense, net 3,351,967 2,247,643

Adjusted EBITDA $ 13,265,903 $ 1,369,840

Source: CorEnergy Infrastructure Trust, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211109005957/en/

CONTACT: CorEnergy Infrastructure Trust, Inc. Investor Relations Debbie Hagen or Matt Kreps 877-699-CORR (2677) info@corenergy.reit