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• | Corridor Public Holdings, Inc. and its wholly-owned subsidiary Corridor Private Holdings, Inc ("CorPrivate"), hold our securities portfolio. |
• | Mowood Corridor, Inc. and its wholly-owned subsidiary, Mowood, LLC ("Mowood"), which is the holding company for one of our operating companies, Omega Pipeline Company, LLC (“Omega”). |
• | Corridor MoGas, Inc. ("CorMoGas") holds two other operating companies, MoGas Pipeline, LLC ("MoGas") and United Property Systems, LLC ("UPS"). |
• | CorEnergy BBWS, Inc. ("BBWS"), CorPrivate and Corridor Leeds Path West, Inc. ("Leeds Path West") hold financing notes receivable. |
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• | Trading securities – The Company’s publicly traded equity securities were classified as trading securities and were historically reported at fair value. The Company liquidated its trading securities in order to acquire real asset investments. As of March 31, 2013, all trading securities had been sold. |
• | Other equity securities – The Company’s other equity securities represent interests in private companies which the Company has elected to report at fair value under the fair value option. |
• | Realized and unrealized gains and losses on trading securities and other equity securities – Changes in the fair values of the Company’s securities during the period reported and the gains or losses realized upon sale of securities during the period are reflected as other income or expense within the accompanying Consolidated Statements of Income. |
• | The independent valuation firm prepares the valuations and the supporting analysis. |
• | The valuation report is reviewed and approved by senior management. |
• | The Audit Committee of the Board of Directors reviews the supporting analysis and accepts the valuations. |
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.) |
• | Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) |
• | Lease revenue – Base rent related to the Company’s leased property is recognized on a straight-line basis over the term of the lease when collectibility is reasonably assured. Contingent rent is recognized when it is earned. Rental payments received in advance are classified as unearned revenue and included as a liability within the Consolidated Balance Sheets. Unearned revenue is amortized ratably over the lease period as revenue recognition criteria are met. Rental payments received in arrears are accrued and classified as Lease Receivable and included in assets within the Consolidated Balance Sheets. |
• | Sales revenue – Revenues related to natural gas distribution and performance of management services are recognized in accordance with GAAP upon delivery of natural gas and upon the substantial performance of management and supervision services related to the expansion of the natural gas distribution system. Omega, acting as a principal, provides for transportation services and natural gas supply for its customers. In addition, Omega is paid fees for the operation and maintenance of its natural gas distribution system, including any necessary expansion of the distribution system. Omega is responsible for the coordination, supervision and quality of the expansions while actual construction is generally performed by third party contractors. Revenues from expansion efforts are recognized in accordance with GAAP using either a completed contract or percentage of completion method based on the level and volume of estimates utilized, as well as the certainty or uncertainty of our ability to collect those revenues. |
• | Transportation revenue – MoGas generates revenue from natural gas transportation and recognizes that revenue on firm contracted capacity over the contract period regardless of the amount of natural gas that is transported. For interruptible or volumetric based transportation, revenue is recognized when physical deliveries of natural gas are made at the delivery point agreed upon by both by both parties. |
• | Financing revenue – Our financing notes receivable are considered a core product offering and therefore the related income is presented as a component of operating income in the revenue section. For increasing rate loans, base interest income is recorded ratably over the life of the loan, using the effective interest rate. The net amount of deferred loan origination fees and costs are amortized on a straight-line basis over the life of the loan and reported as an adjustment to yield in financing revenue. Participating financing revenues are recorded when specific performance criteria have been met. |
• | Securities Transactions and Investment Income Recognition – Securities transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses are reported on an identified cost basis. Distributions received from our equity investments are generally comprised of ordinary income, capital gains and distributions received from investment securities from the portfolio company. The Company records investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on information available from each portfolio company and other industry sources. These estimates may subsequently be revised based on information received from the portfolio companies after their tax reporting periods are concluded, as the actual character of these distributions are not known until after our fiscal year end. |
• | Dividends and distributions from investments – Dividends and distributions from investments are recorded on their ex-dates and are reflected as other income within the accompanying Consolidated Statements of Income. Distributions received from the Company’s investments are generally characterized as ordinary income, capital gains and distributions received from investment securities. The portion characterized as return of capital is paid by our investees from their cash flow from operations. The Company records investment income, capital gains and distributions received from investment securities based on estimates made at the time such distributions are received. Such estimates are based on information available from each company and other industry sources. These estimates may subsequently be revised based on information received from the entities after their tax reporting periods are concluded, as the actual character of these distributions is not known until after the fiscal year end of the Company. |
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EIP Leased Property Held for Sale | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Leased asset | $ | 14,126,849 | $ | 14,126,849 | ||||
Less: accumulated depreciation | (5,878,933 | ) | (3,600,251 | ) | ||||
Net leased asset held for sale | $ | 8,247,916 | $ | 10,526,598 |
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As a Percentage of | ||||||||||||
Leased Properties | Lease Revenues | |||||||||||
As of December 31, 2014 | As of December 31, 2013 | For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended November 30, 2012 | For the One-Month Transition Period December 31, 2012 | |||||||
Pinedale LGS | 79.17% | 94.23% | 71.94% | 88.68% | — | 75.20% | ||||||
Portland Terminal Facility | 17.24% | — | 18.98% | — | — | — | ||||||
Public Service of New Mexico | 3.07% | 5.77% | 9.05% | 11.32% | 100.00% | 24.80% |
Ultra Petroleum Corp. Summary Consolidated Balance Sheets (in thousands) | |||||||
December 31, 2014 | December 31, 2013 | ||||||
Current assets | $ | 277,138 | $ | 128,631 | |||
Non-current assets | 3,948,552 | 2,656,688 | |||||
Total Assets | $ | 4,225,690 | $ | 2,785,319 | |||
Current liabilities | $ | 445,718 | $ | 407,476 | |||
Non-current liabilities | 3,568,312 | 2,709,333 | |||||
Total Liabilities | $ | 4,014,030 | $ | 3,116,809 | |||
Shareholder's equity (deficit) | 211,660 | (331,490 | ) | ||||
Total Liabilities and Shareholder's Equity | $ | 4,225,690 | $ | 2,785,319 | |||
Ultra Petroleum Corp. Summary Consolidated Statements of Operations (in thousands) | |||||||
For the Years Ended December 31, | |||||||
2014 | 2013 | ||||||
Revenues | $ | 1,230,020 | $ | 933,404 | |||
Expenses | 670,431 | 561,138 | |||||
Operating Income | 559,589 | 372,266 | |||||
Other Income (Expense), net | (22,562 | ) | (138,044 | ) | |||
Income before income tax provision (benefit) | 537,027 | 234,222 | |||||
Income tax provision (benefit) | (5,824 | ) | (3,616 | ) | |||
Net Income | $ | 542,851 | $ | 237,838 |
Future Minimum Lease Receipts | ||||
Years Ending December 31, | Amount | |||
2015 | $ | 26,342,843 | ||
2016 | 26,347,143 | |||
2017 | 26,347,143 | |||
2018 | 26,347,143 | |||
2019 | 26,451,645 | |||
Thereafter | 223,510,092 | |||
Total | $ | 355,346,009 |
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Acquisition Date Fair Values | |||
Amount | |||
Leased Property: | |||
Land | $ | 210,000 | |
Buildings and improvements | 1,188,000 | ||
Total Leased Property | $ | 1,398,000 | |
Property and Equipment: | |||
Land | $ | 580,000 | |
Depreciable property: | |||
Natural Gas Pipeline | 119,081,732 | ||
Vehicles and Trailers | 378,000 | ||
Office Equipment | 43,400 | ||
Total Property and Equipment | $ | 119,503,132 | |
Goodwill | $ | 1,718,868 | |
Cash and cash equivalents | 4,098,274 | ||
Accounts receivable | 1,357,905 | ||
Prepaid assets | 125,485 | ||
Accounts payable and other accrued liabilities | (3,781,664 | ) | |
Net assets acquired | $ | 125,000,000 |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Total Revenue (1) | $ | 53,315,951 | $ | 42,551,314 | |||
Total Expenses (2) | 35,742,957 | 33,429,175 | |||||
Operating Income | 17,572,994 | 9,122,139 | |||||
Other Income (Expense) (3) | (3,997,916 | ) | 1,137,606 | ||||
Tax Benefit (Expense) (4) | 641,304 | (734,461 | ) | ||||
Net Income | 14,216,382 | 9,525,284 | |||||
Less: Net Income attributable to non-controlling interest | 1,556,157 | 1,466,767 | |||||
Net Income attributable to CORR Stockholders | $ | 12,660,225 | $ | 8,058,517 | |||
Earnings per share: | |||||||
Basic and Diluted | $ | 0.27 | $ | 0.21 | |||
Weighted Average Shares of Common Stock Outstanding: | |||||||
Basic and Diluted (5) | 46,181,724 | 39,099,396 |
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Deferred Tax Assets and Liabilities | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Deferred Tax Assets: | ||||||||
Net operating loss carryforwards | $ | (679,692 | ) | $ | (65,248 | ) | ||
Cost recovery of leased and fixed assets | (1,042,207 | ) | (966,914 | ) | ||||
Sub-total | $ | (1,721,899 | ) | $ | (1,032,162 | ) | ||
Deferred Tax Liabilities: | ||||||||
Basis reduction of investment in partnerships | $ | 2,842,332 | $ | 6,335,805 | ||||
Net unrealized gain on investment securities | 142,154 | 28,444 | ||||||
Sub-total | 2,984,486 | 6,364,249 | ||||||
Total net deferred tax liability | $ | 1,262,587 | $ | 5,332,087 |
Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||
Application of statutory income tax rate | $ | 2,375,903 | $ | 2,608,151 | $ | 6,852,179 | $ | (848,239 | ) | |||||||
State income taxes, net of federal tax benefit | (47,731 | ) | 273,174 | 442,455 | (64,771 | ) | ||||||||||
Dividends received deduction | — | — | (1,221 | ) | (7,133 | ) | ||||||||||
Income of Real Estate Investment Trust not subject to tax | (2,607,207 | ) | (927,254 | ) | — | — | ||||||||||
Other | 53,472 | 995,447 | (64,479 | ) | — | |||||||||||
Total income tax expense | $ | (225,563 | ) | $ | 2,949,518 | $ | 7,228,934 | $ | (920,143 | ) |
Components of Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||
Current tax expense (benefit) | ||||||||||||||||
Federal | $ | 3,456,858 | $ | (7,139 | ) | $ | — | $ | 3,610,165 | |||||||
State (net of federal tax benefit) | 387,079 | 20,613 | 38,107 | 245,782 | ||||||||||||
AMT benefit | — | — | (8,842 | ) | — | |||||||||||
Total current tax expense (benefit) | $ | 3,843,937 | $ | 13,474 | $ | 29,265 | $ | 3,855,947 | ||||||||
Deferred tax expense (benefit) | ||||||||||||||||
Federal | (3,634,689 | ) | 2,683,483 | 6,762,974 | (4,465,104 | ) | ||||||||||
State (net of federal tax benefit) | (434,811 | ) | 252,561 | 436,695 | (310,986 | ) | ||||||||||
Total deferred tax expense (benefit) | (4,069,500 | ) | 2,936,044 | 7,199,669 | (4,776,090 | ) | ||||||||||
Total income tax expense (benefit), net | $ | (225,563 | ) | $ | 2,949,518 | $ | 7,228,934 | $ | (920,143 | ) |
Aggregate Cost of Securities for Income Tax Purposes | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Aggregate cost for federal income tax purposes | $ | 4,218,986 | $ | 6,604,636 | ||||
Gross unrealized appreciation | 7,436,696 | 16,699,686 | ||||||
Gross unrealized depreciation | — | — | ||||||
Net unrealized appreciation | $ | 7,436,696 | $ | 16,699,686 |
2014 Common Stock Tax Information (unaudited) | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
01/03/2014 | 01/13/2014 | 1/23/2014 | $ | 0.1250 | $ | 0.0928 | $ | 0.0450 | $ | — | $ | 0.0322 | ||||||||||||
04/30/2014 | 05/14/2015 | 05/22/2014 | 0.1290 | 0.0958 | 0.0464 | — | 0.0332 | |||||||||||||||||
07/31/2014 | 08/15/2014 | 08/29/2014 | 0.1300 | 0.0965 | 0.0467 | — | 0.0335 | |||||||||||||||||
10/31/2014 | 11/14/2014 | 11/28/2014 | 0.1300 | 0.0965 | 0.0467 | — | 0.0335 | |||||||||||||||||
Total 2014 Distributions | $ | 0.5140 | $ | 0.3816 | $ | 0.1848 | $ | — | $ | 0.1324 |
2013 Common Stock Tax Information (unaudited) | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
03/08/2013 | 03/06/2013 | 03/19/2013 | $ | 0.1250 | $ | 0.1250 | $ | 0.1250 | $ | — | $ | — | ||||||||||||
06/28/2013 | 06/26/2013 | 07/05/2013 | 0.1250 | 0.0367 | 0.0367 | — | 0.0883 | |||||||||||||||||
09/30/2013 | 09/26/2013 | 10/04/2013 | 0.1250 | — | — | — | 0.1250 | |||||||||||||||||
Total 2013 Distributions | $ | 0.3750 | $ | 0.1617 | $ | 0.1617 | $ | — | $ | 0.2133 |
2012 Common Stock Tax Information (unaudited) | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
02/22/2012 | 02/17/2012 | 03/01/2012 | $ | 0.1100 | $ | — | $ | — | $ | — | $ | 0.1100 | ||||||||||||
05/23/2012 | 05/21/2012 | 06/01/2012 | 0.1100 | — | — | — | 0.1100 | |||||||||||||||||
08/24/2012 | 08/22/2012 | 09/04/2012 | 0.1100 | — | — | — | 0.1100 | |||||||||||||||||
11/23/2012 | 11/20/2012 | 11/30/2012 | 0.1100 | — | — | — | 0.1100 | |||||||||||||||||
Total 2012 Distributions | $ | 0.4400 | $ | — | $ | — | $ | — | $ | 0.4400 |
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Property and Equipment | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Land | $ | 580,000 | $ | — | ||||
Natural gas pipeline | 124,297,157 | 5,215,424 | ||||||
Vehicles and trailers | 506,958 | 125,117 | ||||||
Office equipment and computers | 59,027 | 15,627 | ||||||
Gross property and equipment | 125,443,142 | 5,356,168 | ||||||
Less: accumulated depreciation | (2,623,020 | ) | (2,037,685 | ) | ||||
Net property and equipment | $ | 122,820,122 | $ | 3,318,483 |
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Major Components of Net Realized and Unrealized Gain (Loss) on Trading Securities | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||
Net unrealized gain on trading securities | $ | — | $ | — | $ | 3,985,269 | $ | 4,663,211 | ||||||||
Net realized gain (loss) on trading securities | — | (251,213 | ) | 24,664 | (6,432,269 | ) | ||||||||||
Total net realized and unrealized gain (loss) on trading securities | $ | — | $ | (251,213 | ) | $ | 4,009,933 | $ | (1,769,058 | ) |
December 31, 2014 | ||||||||||||||||
December 31, 2014 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Other equity securities | $ | 9,572,181 | $ | — | $ | — | $ | 9,572,181 | ||||||||
Total Assets | $ | 9,572,181 | $ | — | $ | — | $ | 9,572,181 |
December 31, 2013 | ||||||||||||||||
December 31, 2013 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Other equity securities | 23,304,321 | — | — | 23,304,321 | ||||||||||||
Total Assets | $ | 23,304,321 | $ | — | $ | — | $ | 23,304,321 |
Level 3 Rollforward | ||||||||||||||||||||||||||||
For the Year Ended 12/31/14 | Fair Value Beginning Balance | Acquisitions | Disposals | Total Realized and Unrealized Gains Included in Net Income | Return of Capital Adjustments Impacting Cost Basis of Securities | Fair Value Ending Balance | Changes in Unrealized Gains, Included In Net Income, Relating to Securities Still Held (1) | |||||||||||||||||||||
Other equity securities | $ | 23,304,321 | $ | — | $ | (13,245,379 | ) | $ | 139,612 | $ | (981,373 | ) | $ | 9,217,181 | $ | 139,612 | ||||||||||||
Warrant investment | — | 97,500 | — | 257,500 | — | 355,000 | 257,500 | |||||||||||||||||||||
Total | $ | 23,304,321 | $ | 97,500 | $ | (13,245,379 | ) | $ | 397,112 | $ | (981,373 | ) | $ | 9,572,181 | $ | 397,112 | ||||||||||||
For the Year Ended 12/31/13 | ||||||||||||||||||||||||||||
Other equity securities | $ | 19,707,126 | $ | — | $ | — | $ | 5,292,890 | $ | (1,695,695 | ) | $ | 23,304,321 | $ | 5,292,890 | |||||||||||||
Total | $ | 19,707,126 | $ | — | $ | — | $ | 5,292,890 | $ | (1,695,695 | ) | $ | 23,304,321 | $ | 5,292,890 | |||||||||||||
Significant Unobservable Inputs Used To Value Portfolio Investments | ||||||||||||||
December 31, 2013 | ||||||||||||||
Unobservable Inputs | Range | Weighted Average | ||||||||||||
Assets at Fair Value | Fair Value | Valuation Technique | Low | High | ||||||||||
Other equity securities, at fair value | $ | 23,304,321 | Public company historical EBITDA analysis | Historical EBITDA Valuation Multiples | 9.6x | 10.6x | 10.1x | |||||||
Public company projected EBITDA analysis | Projected EBITDA Valuation Multiples | 8.3x | 9.3x | 8.8x | ||||||||||
M&A company analysis | EV/LTM 2012 EBITDA | 8.3x | 9.3x | 8.8x | ||||||||||
Discounted cash flow | Weighted Average Cost of Capital | 9.5% | 14.0% | 11.8% |
Assets | December 31, 2014 | December 31, 2013 | ||||||
Current assets | $ | 25,783,000 | $ | 23,535,000 | ||||
Noncurrent assets | 385,256,000 | 392,062,000 | ||||||
Total Assets | $ | 411,039,000 | $ | 415,597,000 | ||||
Liabilities | ||||||||
Current liabilities | $ | 14,317,000 | $ | 15,342,000 | ||||
Noncurrent liabilities | 113,810,000 | 105,563,000 | ||||||
Total Liabilities | $ | 128,127,000 | $ | 120,905,000 | ||||
Partner's equity | 282,912,000 | 294,692,000 | ||||||
Total liabilities and partner's equity | $ | 411,039,000 | $ | 415,597,000 |
For the Year Ending | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Revenues | $ | 54,906,000 | $ | 47,841,000 | ||||
Operating expenses | 56,482,000 | 41,254,000 | ||||||
Other income (expenses) | 10,632,000 | 12,907,000 | ||||||
Net income | $ | 9,056,000 | $ | 19,494,000 | ||||
EBITDA | $ | 25,753,000 | $ | 39,184,000 |
Carrying and Fair Value Amounts | ||||||||||||||||||
Level within fair value hierarchy | December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 7,578,164 | $ | 7,578,164 | $ | 17,963,266 | $ | 17,963,266 | |||||||||
Escrow receivable | Level 2 | $ | 2,438,500 | $ | 2,438,500 | $ | — | $ | — | |||||||||
Financing notes receivable | Level 2 | $ | 20,687,962 | $ | 20,687,962 | $ | — | $ | — | |||||||||
Financial Liabilities: | ||||||||||||||||||
Long-term debt | Level 2 | $ | 67,060,000 | $ | 67,060,000 | $ | 70,000,000 | $ | 70,000,000 | |||||||||
Line of credit | Level 2 | $ | 32,141,277 | $ | 32,141,277 | $ | 81,935 | $ | 81,935 |
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Intangible Lease Asset | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Intangible lease asset | $ | 1,094,771 | $ | 1,094,771 | ||||
Accumulated amortization | (1,021,784 | ) | (729,847 | ) | ||||
Net intangible lease asset | $ | 72,987 | $ | 364,924 |
Remaining Estimated Amortization On Intangibles | ||||
Year ending December 31, | Amount | |||
2015 | 72,987 | |||
Total | $ | 72,987 |
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Derivative Financial Instruments Measured At Fair Value on a Recurring Basis | |||||||||||||||
Balance Sheet Classification | Fair Value Hierarchy | ||||||||||||||
Balance Sheet Line Item | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | |||||||||||||||
Hedged derivative asset | Assets | $ | — | $ | 351,807 | $ | — | ||||||||
December 31, 2013 | |||||||||||||||
Hedged derivative asset | Assets | $ | — | $ | 680,968 | $ | — | ||||||||
Level 1 – quoted prices in active markets for identical investments | |||||||||||||||
Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.) | |||||||||||||||
Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) |
Outstanding Derivatives Designated as Cash Flow Hedges of Interest Rate Risk | ||||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount Outstanding | Floating Rate Received | Fixed Rate Paid | ||||||||
Effective Date | Termination Date | |||||||||||
Interest Rate Swap | 2 | $52,500,000 | February 5, 2013 | December 5, 2017 | 1-month US Dollar LIBOR | 0.865% |
For Year Ended December 31, | For Year Ended November 30, 2012 | For the One-Month Transition Period Ended December 31, 2012 | ||||||||||
Derivatives in Cash Flow Hedging Relationship | 2014 | 2013 | ||||||||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)1 | $ | (705,826 | ) | $ | 741,344 | $ | — | $ | — | |||
Amount of Gain (Loss) Reclassified from AOCI on Derivatives (Effective Portion) Recognized in Net Income1 | (305,945 | ) | (217,821 | ) | — | — | ||||||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing)1 | (897 | ) | 5,969 | — | — | |||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative2 | $ | — | $ | (75,200 | ) | $ | — | $ | (316,756 | ) | ||
(1) Included in "Interest Expense" on the face of the Income Statement | ||||||||||||
(2)The gain or (loss) recognized in income on derivatives includes changes in fair value of the derivatives as well as the periodic cash settlements and interest accruals for derivatives not designated as hedging instruments |
Offsetting Derivatives | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||
Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||
Offsetting Derivative Assets as of December 31, 2014 | $ | 351,807 | $ | — | $ | 351,807 | $ | — | $ | — | $ | 351,807 | ||||||||||||
Offsetting Derivative Assets as of December 31, 2013 | $ | 680,968 | $ | — | $ | 680,968 | $ | — | $ | — | $ | 680,968 |
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For the Fiscal Quarters Ended | ||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | |||||||||||||
Lease revenue | $ | 6,762,408 | $ | 7,065,677 | $ | 7,191,187 | $ | 7,204,493 | ||||||||
Sales revenue | 3,259,530 | 1,813,607 | 1,741,209 | 2,894,556 | ||||||||||||
Financing revenue | 25,619 | 139,728 | 413,482 | 498,984 | ||||||||||||
Transportation revenue | — | — | — | 1,298,093 | ||||||||||||
Total revenue | 10,047,557 | 9,019,012 | 9,345,878 | 11,896,126 | ||||||||||||
Cost of sales | 2,707,358 | 1,384,998 | 1,284,711 | 1,914,901 | ||||||||||||
Transportation, maintenance and general and administrative | — | — | — | 458,872 | ||||||||||||
Management fees, net of expense reimbursements | 783,868 | 761,265 | 813,921 | 1,108,606 | ||||||||||||
All other expenses | 4,018,806 | 4,007,481 | 4,490,185 | 5,924,786 | ||||||||||||
Total expenses | 7,510,032 | 6,153,744 | 6,588,817 | 9,407,165 | ||||||||||||
Income (loss) from operations, before income taxes | 2,537,525 | 2,865,268 | 2,757,061 | 2,488,961 | ||||||||||||
Realized and unrealized gain (loss) on securities transactions, before income taxes | 1,294,182 | 2,084,026 | (865,470 | ) | (2,978,764 | ) | ||||||||||
Distributions and income from investments, net | 5,056 | 5,988 | 1,688,830 | 136,909 | ||||||||||||
Interest expense | (826,976 | ) | (819,360 | ) | (977,635 | ) | (1,051,151 | ) | ||||||||
Total other income (loss) and expense, net, before income taxes | 472,262 | 1,270,654 | (154,275 | ) | (3,893,006 | ) | ||||||||||
Income (loss) before income taxes | 3,009,787 | 4,135,922 | 2,602,786 | (1,404,045 | ) | |||||||||||
Current and deferred tax expense, net | 513,513 | 742,879 | 324,883 | (1,806,838 | ) | |||||||||||
Net income | $ | 2,496,274 | $ | 3,393,043 | $ | 2,277,903 | $ | 402,793 | ||||||||
Net income attributable to non-controlling interest | $ | 391,114 | $ | 387,135 | $ | 389,485 | $ | 388,423 | ||||||||
Net income attributable to CORR stockholders | $ | 2,105,160 | $ | 3,005,908 | $ | 1,888,418 | $ | 14,370 | ||||||||
Basic and diluted earnings per share | $ | 0.07 | $0.10 | $ | 0.06 | $ | — |
For the Fiscal Quarters Ended | ||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | |||||||||||||
Lease revenue | $ | 5,638,244 | $ | 5,638,244 | $ | 5,638,244 | $ | 5,638,244 | ||||||||
Sales revenue | 2,515,573 | 1,929,772 | 1,935,868 | 2,351,831 | ||||||||||||
Total revenue | 8,153,817 | 7,568,016 | 7,574,112 | 7,990,075 | ||||||||||||
Cost of sales | 2,003,639 | 1,476,348 | 1,411,318 | 1,843,360 | ||||||||||||
Management fees | 643,814 | 646,394 | 647,380 | 699,677 | ||||||||||||
All other expenses | 3,705,925 | 3,845,005 | 4,227,013 | 3,880,512 | ||||||||||||
Total expenses | 6,353,378 | 5,967,747 | 6,285,711 | 6,423,549 | ||||||||||||
Income (loss) from operations, before income taxes | 1,800,439 | 1,600,269 | 1,288,401 | 1,566,526 | ||||||||||||
Realized and unrealized gain (loss) on securities transactions, before income taxes | 2,742,049 | (30,976 | ) | 872,020 | 1,783,460 | |||||||||||
Distributions and income from investments, net | 13,124 | 2,701 | 568,332 | 657 | ||||||||||||
Interest expense, net | (737,381 | ) | (907,275 | ) | (818,134 | ) | (825,588 | ) | ||||||||
Total other income (loss) and expense, net, before income taxes | 2,017,792 | (935,550 | ) | 622,218 | 958,529 | |||||||||||
Income (loss) before income taxes | 3,818,231 | 664,719 | 1,910,619 | 2,525,055 | ||||||||||||
Current and deferred tax expense, net | 1,020,944 | 241,754 | 1,105,125 | 581,695 | ||||||||||||
Net income | $ | 2,797,287 | $ | 422,965 | $ | 805,494 | $ | 1,943,360 | ||||||||
Net income attributable to non-controlling interest | $ | 384,534 | $ | 352,893 | $ | 366,042 | $ | 363,298 | ||||||||
Net income attributable to CORR stockholders | $ | 2,412,753 | $ | 70,072 | $ | 439,452 | $ | 1,580,062 | ||||||||
Basic and diluted earnings per share | $ | 0.10 | $ | — | $ | 0.02 | $ | 0.06 |
|
CorEnergy Historical Summary Consolidated Balance Sheets | |||||||
December 31, 2012 | December 31, 2011 (Unaudited) | ||||||
Current assets | $ | 19,202,432 | $ | 5,307,970 | |||
Non-current assets | 274,459,553 | 90,623,108 | |||||
Total Assets | $ | 293,661,985 | $ | 95,931,078 | |||
Current liabilities | $ | 8,290,065 | $ | 1,552,281 | |||
Non-current liabilities | 74,529,728 | 2,894,200 | |||||
Total Liabilities | 82,819,793 | 4,446,481 | |||||
Shareholder's equity | 210,842,192 | 91,484,597 | |||||
Total Liabilities and Shareholder's Equity | $ | 293,661,985 | $ | 95,931,078 | |||
CorEnergy Historical Summary Consolidated Statements of Income | |||||||
For the One- Month Transition Period Ended December 31, 2012 | For the One- Month Period Ended December 31, 2011 (Unaudited) | ||||||
Revenues | $ | 1,726,901 | $ | 1,079,612 | |||
Expenses | 1,826,422 | 993,919 | |||||
Operating Income (Loss) | (99,521 | ) | 85,693 | ||||
Other Income (Expense), net | (2,342,365 | ) | 1,601,084 | ||||
Income (Loss) before income tax benefit (provision) | (2,441,886 | ) | 1,686,777 | ||||
Income tax benefit (provision) | 920,143 | (628,493 | ) | ||||
Net Income (Loss) | (1,521,743 | ) | 1,058,284 | ||||
Less: Net Income (Loss) attributable to non-controlling interest | (18,347 | ) | — | ||||
Net Income (Loss) attributable to CORR Stockholders | $ | (1,503,396 | ) | $ | 1,058,284 |
|
|
|
CONDENSED BALANCE SHEETS | December 31, 2014 | December 31, 2013 | |||||
Assets | |||||||
Leased property, net of accumulated depreciation of $374,699 and$190,319 | $ | 4,418,957 | $ | 4,847,569 | |||
Leased property held for sale, net of accumulated depreciation of $5,878,933 and $3,600,251 | 8,247,916 | 10,526,598 | |||||
Investments | 219,883,494 | 135,574,270 | |||||
Cash and cash equivalents | 3,599,935 | 16,649,618 | |||||
Due from subsidiary | 12,236,050 | 3,972,006 | |||||
Note receivable from subsidiary | 95,300,000 | 5,300,000 | |||||
Lease receivable | — | 711,229 | |||||
Intangible lease asset, net of accumulated amortization of $1,021,784 and $729,847 | 72,987 | 364,924 | |||||
Deferred debt issuance costs, net of accumulated amortization of $69,772 and $56,019 | 1,645,887 | 235,693 | |||||
Deferred lease costs, net of accumulated amortization of $10,808 and $5,490 | 68,968 | 74,286 | |||||
Income tax receivable | 319,122 | 512,060 | |||||
Prepaid expenses and other assets | 147,114 | 156,153 | |||||
Total Assets | $ | 345,940,430 | $ | 178,924,406 | |||
Liabilities and Equity | |||||||
Accounts payable and other accrued liabilities | 1,339,739 | 1,035,628 | |||||
Management fees payable | 1,164,399 | 695,438 | |||||
Due to affiliate | 274,715 | — | |||||
Line of credit | 32,000,000 | — | |||||
Unearned revenue | 711,230 | — | |||||
Total Liabilities | $ | 35,490,083 | $ | 1,731,066 | |||
Equity | |||||||
Warrants, no par value; 0 and 945,594 issued and outstanding at December 31, 2014 and December 31, 2013 (5,000,000 authorized) | $ | — | $ | 1,370,700 | |||
Capital stock, non-convertible, $0.001 par value; 46,605,055 and 24,156,163 shares issued and outstanding at December 31, 2014 and December 31, 2013 (100,000,000 shares authorized) | 46,605 | 24,156 | |||||
Additional paid-in capital | 309,950,440 | 173,441,019 | |||||
Accumulated retained earnings | — | 1,580,062 | |||||
Accumulated other comprehensive income | 453,302 | 777,403 | |||||
Total Equity | 310,450,347 | 177,193,340 | |||||
Total Liabilities and Equity | $ | 345,940,430 | $ | 178,924,406 |
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | For the Years Ended | For the One-Month Transition Period Ended December 31, 2012 | |||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | |||||||||||||
Revenue | |||||||||||||||
Lease revenue | $ | 2,552,976 | $ | 2,552,976 | $ | 2,552,975 | $ | 212,748 | |||||||
Earnings (loss) from subsidiary | 6,730,060 | 5,720,413 | 356,336 | (22,313 | ) | ||||||||||
Total Revenue | 9,283,036 | 8,273,389 | 2,909,311 | 190,435 | |||||||||||
Expenses | |||||||||||||||
Management fees, net of expense reimbursements | 195,517 | 366,863 | 1,046,796 | 155,242 | |||||||||||
Asset acquisition expenses | 304,527 | 806,083 | 377,834 | 64,734 | |||||||||||
Professional fees | 425,475 | 198,562 | 1,141,045 | 282,303 | |||||||||||
Depreciation expense | 2,463,062 | 2,463,052 | 837,371 | 195,838 | |||||||||||
Amortization expense | 5,318 | 5,320 | — | 172 | |||||||||||
Directors’ fees | 15,245 | 24,788 | 85,050 | 6,000 | |||||||||||
Other expenses | 120,657 | 113,001 | 232,248 | 27,500 | |||||||||||
Total Expenses | 3,529,801 | 3,977,669 | 3,720,344 | 731,789 | |||||||||||
Operating Income (Loss) | $ | 5,753,235 | $ | 4,295,720 | $ | (811,033 | ) | $ | (541,354 | ) | |||||
Other Income (Expense) | |||||||||||||||
Net distributions and dividend income | $ | 13,117 | $ | 6,681 | $ | 261,472 | $ | 48,136 | |||||||
Net realized and unrealized gain (loss) on trading securities | — | — | 4,009,933 | (1,769,058 | ) | ||||||||||
Net realized and unrealized gain (loss) on other equity securities | — | — | 16,171,944 | (159,495 | ) | ||||||||||
Interest income (expense) | 1,247,504 | 703,091 | (54,661 | ) | (1,768 | ) | |||||||||
Total Other Income (Expense) | 1,260,621 | 709,772 | 20,388,688 | (1,882,185 | ) | ||||||||||
Income (Loss) before income taxes | 7,013,856 | 5,005,492 | 19,577,655 | (2,423,539 | ) | ||||||||||
Taxes | |||||||||||||||
Current tax expense (benefit) | — | (540,111 | ) | 29,265 | 3,855,947 | ||||||||||
Deferred tax expense (benefit) | — | 1,043,264 | 7,199,669 | (4,776,090 | ) | ||||||||||
Income tax expense (benefit), net | — | 503,153 | 7,228,934 | (920,143 | ) | ||||||||||
Net Income (Loss) | 7,013,856 | 4,502,339 | 12,348,721 | (1,503,396 | ) | ||||||||||
Other comprehensive income: | |||||||||||||||
Changes in fair value of qualifying hedges | (324,101 | ) | 777,403 | — | — | ||||||||||
Total Comprehensive Income | $ | 6,689,755 | $ | 5,279,742 | $ | 12,348,721 | $ | (1,503,396 | ) |
CONDENSED STATEMENTS OF CASH FLOW | For the Years Ended | For the One-Month Transition Period Ended December 31, 2012 | |||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | |||||||||||||
Net cash provided by (used in) operating activities | $ | (2,077,777 | ) | $ | (8,040,654 | ) | $ | 9,391,301 | $ | 223,494 | |||||
Investing Activities | |||||||||||||||
Proceeds from sale of long-term investment of trading and other equity securities | — | — | 9,983,169 | 26,085,740 | |||||||||||
Issuance of note to subsidiary | (90,000,000 | ) | — | — | — | ||||||||||
Deferred lease costs | — | — | — | (796,649 | ) | ||||||||||
Investment in consolidated subsidiaries | — | — | — | (108,300,100 | ) | ||||||||||
Cash distributions from consolidated subsidiaries | 18,559,328 | 19,337,911 | 281,133 | 483,346 | |||||||||||
Acquisition expenditures | (96,570,263 | ) | (1,651,956 | ) | (942,707 | ) | 2,318 | ||||||||
Net cash provided by (used in) investing activities | $ | (168,010,935 | ) | $ | 17,685,955 | $ | 9,321,595 | $ | (82,525,345 | ) | |||||
Financing Activities | |||||||||||||||
Debt financing costs | (1,600,908 | ) | (30,002 | ) | (1,054,302 | ) | — | ||||||||
Net offering proceeds | 141,797,913 | (523,094 | ) | — | 84,516,780 | ||||||||||
Dividends | (15,187,976 | ) | (8,946,941 | ) | (3,919,249 | ) | — | ||||||||
Advances on revolving line of credit | 32,000,000 | — | — | — | |||||||||||
Common stock issued under director's compensation plan | 30,000 | — | — | — | |||||||||||
Payments on long-term debt | — | — | (2,188,000 | ) | — | ||||||||||
Net cash provided by (used in) financing activities | $ | 157,039,029 | $ | (9,500,037 | ) | $ | (7,161,551 | ) | $ | 84,516,780 | |||||
Net Change in Cash and Cash Equivalents | $ | (13,049,683 | ) | $ | 145,264 | $ | 11,551,345 | $ | 2,214,929 | ||||||
Cash and Cash Equivalents at beginning of period | 16,649,618 | 16,504,354 | 2,738,080 | 14,289,425 | |||||||||||
Cash and Cash Equivalents at end of period | $ | 3,599,935 | $ | 16,649,618 | $ | 14,289,425 | $ | 16,504,354 | |||||||
See accompanying notes to condensed financial statements. |
Supplemental Disclosure of Cash Flow Information | |||||||||||||||
Interest paid | $ | — | $ | — | $ | 176,595 | $ | 2,765 | |||||||
Income taxes paid (net of refunds) | $ | 192,938 | $ | 3,761,161 | $ | 96,000 | $ | — | |||||||
Non-Cash Investing Activities | |||||||||||||||
Security proceeds from sale in long-term investment of other equity securities | $ | — | $ | — | $ | 26,565,400 | $ | 23,046,215 | |||||||
Reclassification of prepaid expenses and other assets to deferred lease costs | $ | — | $ | — | $ | — | $ | 753,940 | |||||||
Reclassification of prepaid expenses and other assets to acquisition expenditures | $ | — | $ | — | $ | — | $ | 188,766 | |||||||
Change in accounts payable and accrued expenses related to deferred lease costs | $ | — | $ | — | $ | — | $ | (704,164 | ) | ||||||
Change in accounts payable and accrued expenses related to acquisition expenditures | $ | (344,065 | ) | $ | (1,407,724 | ) | $ | — | $ | 1,560,993 | |||||
Non-Cash Financing Activities | |||||||||||||||
Reclassification of prepaid expenses and other assets to issuance of equity | $ | — | $ | — | $ | — | $ | 617,308 | |||||||
Reclassification of prepaid expenses and other assets to deferred loan costs | $ | — | $ | — | $ | — | $ | 436,994 | |||||||
Change in accounts payable and accrued expenses related to the issuance of equity | $ | 72,685 | $ | (523,094 | ) | $ | — | $ | 391,322 | ||||||
Change in accounts payable and accrued expenses related to debt financing costs | $ | (176,961 | ) | $ | 220,000 | $ | — | $ | (395,284 | ) | |||||
Reinvestment of distributions by common stockholders in additional common shares | $ | 140,108 | $ | 108,119 | $ | 121,024 | $ | — |
|
Initial Cost to Company | Cost Capitalized Subsequent to Acquisition | Gross Amount Carried at Close of Period 12/31/14 | ||||||||||||||||||||||||||||||||||||||
Description | Location | Date Acquired | Land | Building & Fixtures | Improvements | Land | Building & Fixtures | Total | Accumulated Depreciation | Investment in Real Estate, net, at 12/31/14 | Encumbrances | |||||||||||||||||||||||||||||
Pinedale LGS1 | Pinedale, WY | 2012 | $ | 105,485,063 | $ | 125,119,062 | — | $ | 105,485,063 | $ | 125,119,062 | $ | 230,604,125 | $ | 18,023,778 | $ | 212,580,347 | $ | 67,060,000 | |||||||||||||||||||||
Eastern Interconnect Project (Held for Sale) | Albuquerque, NM | 2011 | — | 14,126,849 | — | — | 14,126,849 | 14,126,849 | 5,878,933 | 8,247,916 | — | |||||||||||||||||||||||||||||
Portland Terminal Facility2 | Portland, OR | 2014 | — | 42,634,411 | 5,060,518 | — | 47,694,929 | 47,694,929 | 1,390,236 | 46,304,693 | — | |||||||||||||||||||||||||||||
UPS | St. Louis, MO | 2014 | 210,000 | 1,188,000 | — | 210,000 | 1,188,000 | 1,398,000 | 3,011 | 1,394,989 | — | |||||||||||||||||||||||||||||
$ | 105,695,063 | $ | 183,068,322 | $ | 5,060,518 | $ | 105,695,063 | $ | 188,128,840 | $ | 293,823,903 | $ | 25,295,958 | $ | 268,527,945 | $ | 67,060,000 |
For the Years Ended | For the One-Month Transition Period Ended December 31, 2012 | ||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | |||||||||||||
Investment in real estate: | |||||||||||||||
Balance, beginning of year | $ | 244,975,206 | $ | 244,686,333 | $ | 14,126,849 | $ | 14,126,849 | |||||||
Addition: Acquisitions and developments | 48,848,697 | 288,873 | — | 230,559,484 | |||||||||||
Deduction: Dispositions and other | — | — | — | — | |||||||||||
Balance, end of year | $ | 293,823,903 | $ | 244,975,206 | $ | 14,126,849 | $ | 244,686,333 | |||||||
Accumulated depreciation: | |||||||||||||||
Balance, beginning of year | $ | 12,754,588 | $ | 1,607,624 | $ | 294,309 | $ | 1,131,680 | |||||||
Addition: Depreciation | 12,541,370 | 11,146,964 | 837,371 | 475,944 | |||||||||||
Deduction: Dispositions and other | — | — | — | — | |||||||||||
Balance, end of year | $ | 25,295,958 | $ | 12,754,588 | $ | 1,131,680 | $ | 1,607,624 |
|
Description | Interest Rate | Final Maturity | Monthly Payment Amount (2) | Prior Liens | Face Value | Carrying Amount of Mortgage | Principal Amount of Loans Subject to Delinquent Principal or Interest | ||||||||||||||||
First Mortgages | |||||||||||||||||||||||
Campbell County - Wyoming (Reed, Gillette, Lemay) | 12.00% | (1 | ) | 3/31/2024 | $ | 127,508 | None | $ | 12,000,000 | $ | 12,175,029 | $ | — | ||||||||||
Billings, Dunn, and McKenzie Counties, North Dakota (Morlock Well) | 12.00% | 12/31/2024 | $ | 40,000 | None | 4,000,000 | 3,948,738 | — | |||||||||||||||
Second Mortgages | |||||||||||||||||||||||
Campbell County - Wyoming (Reed, Gillette, Lemay) | 12.00% | (1 | ) | 3/31/2024 | $ | 35,115 | None | 3,300,000 | 3,336,403 | — | |||||||||||||
Billings, Dunn, and McKenzie Counties, North Dakota (Morlock Well) | 13.00% | 12/31/2024 | $ | 10,833 | None | 1,000,000 | 975,000 | — | |||||||||||||||
$ | 20,300,000 | $ | 20,435,170 | $ | — |
For the Years Ended | One-Month Transition Period Ended December 31, 2012 | ||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | |||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | |||||||
Additions: | |||||||||||||||
New loans | 20,300,000 | — | — | — | |||||||||||
Net deferred costs | (86,508 | ) | — | — | — | ||||||||||
Interest receivable | 220,349 | — | — | — | |||||||||||
Total Additions | $ | 20,433,841 | $ | — | $ | — | $ | — | |||||||
Deductions: | |||||||||||||||
Principal repayments | $ | — | $ | — | $ | — | $ | — | |||||||
Amortization of deferred costs | 1,329 | — | — | — | |||||||||||
Total deductions | $ | 1,329 | $ | — | $ | — | $ | — | |||||||
Ending balance | $ | 20,435,170 | $ | — | $ | — | $ | — |
|
• | Trading securities – The Company’s publicly traded equity securities were classified as trading securities and were historically reported at fair value. The Company liquidated its trading securities in order to acquire real asset investments. As of March 31, 2013, all trading securities had been sold. |
• | Other equity securities – The Company’s other equity securities represent interests in private companies which the Company has elected to report at fair value under the fair value option. |
• | Realized and unrealized gains and losses on trading securities and other equity securities – Changes in the fair values of the Company’s securities during the period reported and the gains or losses realized upon sale of securities during the period are reflected as other income or expense within the accompanying Consolidated Statements of Income. |
• | The independent valuation firm prepares the valuations and the supporting analysis. |
• | The valuation report is reviewed and approved by senior management. |
• | The Audit Committee of the Board of Directors reviews the supporting analysis and accepts the valuations. |
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.) |
• | Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) |
• | Lease revenue – Base rent related to the Company’s leased property is recognized on a straight-line basis over the term of the lease when collectibility is reasonably assured. Contingent rent is recognized when it is earned. Rental payments received in advance are classified as unearned revenue and included as a liability within the Consolidated Balance Sheets. Unearned revenue is amortized ratably over the lease period as revenue recognition criteria are met. Rental payments received in arrears are accrued and classified as Lease Receivable and included in assets within the Consolidated Balance Sheets. |
• | Sales revenue – Revenues related to natural gas distribution and performance of management services are recognized in accordance with GAAP upon delivery of natural gas and upon the substantial performance of management and supervision services related to the expansion of the natural gas distribution system. Omega, acting as a principal, provides for transportation services and natural gas supply for its customers. In addition, Omega is paid fees for the operation and maintenance of its natural gas distribution system, including any necessary expansion of the distribution system. Omega is responsible for the coordination, supervision and quality of the expansions while actual construction is generally performed by third party contractors. Revenues from expansion efforts are recognized in accordance with GAAP using either a completed contract or percentage of completion method based on the level and volume of estimates utilized, as well as the certainty or uncertainty of our ability to collect those revenues. |
• | Transportation revenue – MoGas generates revenue from natural gas transportation and recognizes that revenue on firm contracted capacity over the contract period regardless of the amount of natural gas that is transported. For interruptible or volumetric based transportation, revenue is recognized when physical deliveries of natural gas are made at the delivery point agreed upon by both by both parties. |
• | Financing revenue – Our financing notes receivable are considered a core product offering and therefore the related income is presented as a component of operating income in the revenue section. For increasing rate loans, base interest income is recorded ratably over the life of the loan, using the effective interest rate. The net amount of deferred loan origination fees and costs are amortized on a straight-line basis over the life of the loan and reported as an adjustment to yield in financing revenue. Participating financing revenues are recorded when specific performance criteria have been met. |
• | Securities Transactions and Investment Income Recognition – Securities transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses are reported on an identified cost basis. Distributions received from our equity investments are generally comprised of ordinary income, capital gains and distributions received from investment securities from the portfolio company. The Company records investment income and return of capital based on estimates made at the time such distributions are received. Such estimates are based on information available from each portfolio company and other industry sources. These estimates may subsequently be revised based on information received from the portfolio companies after their tax reporting periods are concluded, as the actual character of these distributions are not known until after our fiscal year end. |
• | Dividends and distributions from investments – Dividends and distributions from investments are recorded on their ex-dates and are reflected as other income within the accompanying Consolidated Statements of Income. Distributions received from the Company’s investments are generally characterized as ordinary income, capital gains and distributions received from investment securities. The portion characterized as return of capital is paid by our investees from their cash flow from operations. The Company records investment income, capital gains and distributions received from investment securities based on estimates made at the time such distributions are received. Such estimates are based on information available from each company and other industry sources. These estimates may subsequently be revised based on information received from the entities after their tax reporting periods are concluded, as the actual character of these distributions is not known until after the fiscal year end of the Company |
|
EIP Leased Property Held for Sale | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Leased asset | $ | 14,126,849 | $ | 14,126,849 | ||||
Less: accumulated depreciation | (5,878,933 | ) | (3,600,251 | ) | ||||
Net leased asset held for sale | $ | 8,247,916 | $ | 10,526,598 |
|
As a Percentage of | ||||||||||||
Leased Properties | Lease Revenues | |||||||||||
As of December 31, 2014 | As of December 31, 2013 | For the Year Ended December 31, 2014 | For the Year Ended December 31, 2013 | For the Year Ended November 30, 2012 | For the One-Month Transition Period December 31, 2012 | |||||||
Pinedale LGS | 79.17% | 94.23% | 71.94% | 88.68% | — | 75.20% | ||||||
Portland Terminal Facility | 17.24% | — | 18.98% | — | — | — | ||||||
Public Service of New Mexico | 3.07% | 5.77% | 9.05% | 11.32% | 100.00% | 24.80% |
Ultra Petroleum Corp. Summary Consolidated Balance Sheets (in thousands) | |||||||
December 31, 2014 | December 31, 2013 | ||||||
Current assets | $ | 277,138 | $ | 128,631 | |||
Non-current assets | 3,948,552 | 2,656,688 | |||||
Total Assets | $ | 4,225,690 | $ | 2,785,319 | |||
Current liabilities | $ | 445,718 | $ | 407,476 | |||
Non-current liabilities | 3,568,312 | 2,709,333 | |||||
Total Liabilities | $ | 4,014,030 | $ | 3,116,809 | |||
Shareholder's equity (deficit) | 211,660 | (331,490 | ) | ||||
Total Liabilities and Shareholder's Equity | $ | 4,225,690 | $ | 2,785,319 | |||
Ultra Petroleum Corp. Summary Consolidated Statements of Operations (in thousands) | |||||||
For the Years Ended December 31, | |||||||
2014 | 2013 | ||||||
Revenues | $ | 1,230,020 | $ | 933,404 | |||
Expenses | 670,431 | 561,138 | |||||
Operating Income | 559,589 | 372,266 | |||||
Other Income (Expense), net | (22,562 | ) | (138,044 | ) | |||
Income before income tax provision (benefit) | 537,027 | 234,222 | |||||
Income tax provision (benefit) | (5,824 | ) | (3,616 | ) | |||
Net Income | $ | 542,851 | $ | 237,838 |
Future Minimum Lease Receipts | ||||
Years Ending December 31, | Amount | |||
2015 | $ | 26,342,843 | ||
2016 | 26,347,143 | |||
2017 | 26,347,143 | |||
2018 | 26,347,143 | |||
2019 | 26,451,645 | |||
Thereafter | 223,510,092 | |||
Total | $ | 355,346,009 |
|
Acquisition Date Fair Values | |||
Amount | |||
Leased Property: | |||
Land | $ | 210,000 | |
Buildings and improvements | 1,188,000 | ||
Total Leased Property | $ | 1,398,000 | |
Property and Equipment: | |||
Land | $ | 580,000 | |
Depreciable property: | |||
Natural Gas Pipeline | 119,081,732 | ||
Vehicles and Trailers | 378,000 | ||
Office Equipment | 43,400 | ||
Total Property and Equipment | $ | 119,503,132 | |
Goodwill | $ | 1,718,868 | |
Cash and cash equivalents | 4,098,274 | ||
Accounts receivable | 1,357,905 | ||
Prepaid assets | 125,485 | ||
Accounts payable and other accrued liabilities | (3,781,664 | ) | |
Net assets acquired | $ | 125,000,000 |
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Total Revenue (1) | $ | 53,315,951 | $ | 42,551,314 | |||
Total Expenses (2) | 35,742,957 | 33,429,175 | |||||
Operating Income | 17,572,994 | 9,122,139 | |||||
Other Income (Expense) (3) | (3,997,916 | ) | 1,137,606 | ||||
Tax Benefit (Expense) (4) | 641,304 | (734,461 | ) | ||||
Net Income | 14,216,382 | 9,525,284 | |||||
Less: Net Income attributable to non-controlling interest | 1,556,157 | 1,466,767 | |||||
Net Income attributable to CORR Stockholders | $ | 12,660,225 | $ | 8,058,517 | |||
Earnings per share: | |||||||
Basic and Diluted | $ | 0.27 | $ | 0.21 | |||
Weighted Average Shares of Common Stock Outstanding: | |||||||
Basic and Diluted (5) | 46,181,724 | 39,099,396 |
|
Deferred Tax Assets and Liabilities | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Deferred Tax Assets: | ||||||||
Net operating loss carryforwards | $ | (679,692 | ) | $ | (65,248 | ) | ||
Cost recovery of leased and fixed assets | (1,042,207 | ) | (966,914 | ) | ||||
Sub-total | $ | (1,721,899 | ) | $ | (1,032,162 | ) | ||
Deferred Tax Liabilities: | ||||||||
Basis reduction of investment in partnerships | $ | 2,842,332 | $ | 6,335,805 | ||||
Net unrealized gain on investment securities | 142,154 | 28,444 | ||||||
Sub-total | 2,984,486 | 6,364,249 | ||||||
Total net deferred tax liability | $ | 1,262,587 | $ | 5,332,087 |
Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||
Application of statutory income tax rate | $ | 2,375,903 | $ | 2,608,151 | $ | 6,852,179 | $ | (848,239 | ) | |||||||
State income taxes, net of federal tax benefit | (47,731 | ) | 273,174 | 442,455 | (64,771 | ) | ||||||||||
Dividends received deduction | — | — | (1,221 | ) | (7,133 | ) | ||||||||||
Income of Real Estate Investment Trust not subject to tax | (2,607,207 | ) | (927,254 | ) | — | — | ||||||||||
Other | 53,472 | 995,447 | (64,479 | ) | — | |||||||||||
Total income tax expense | $ | (225,563 | ) | $ | 2,949,518 | $ | 7,228,934 | $ | (920,143 | ) |
Components of Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2014 | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||
Current tax expense (benefit) | ||||||||||||||||
Federal | $ | 3,456,858 | $ | (7,139 | ) | $ | — | $ | 3,610,165 | |||||||
State (net of federal tax benefit) | 387,079 | 20,613 | 38,107 | 245,782 | ||||||||||||
AMT benefit | — | — | (8,842 | ) | — | |||||||||||
Total current tax expense (benefit) | $ | 3,843,937 | $ | 13,474 | $ | 29,265 | $ | 3,855,947 | ||||||||
Deferred tax expense (benefit) | ||||||||||||||||
Federal | (3,634,689 | ) | 2,683,483 | 6,762,974 | (4,465,104 | ) | ||||||||||
State (net of federal tax benefit) | (434,811 | ) | 252,561 | 436,695 | (310,986 | ) | ||||||||||
Total deferred tax expense (benefit) | (4,069,500 | ) | 2,936,044 | 7,199,669 | (4,776,090 | ) | ||||||||||
Total income tax expense (benefit), net | $ | (225,563 | ) | $ | 2,949,518 | $ | 7,228,934 | $ | (920,143 | ) |
Aggregate Cost of Securities for Income Tax Purposes | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Aggregate cost for federal income tax purposes | $ | 4,218,986 | $ | 6,604,636 | ||||
Gross unrealized appreciation | 7,436,696 | 16,699,686 | ||||||
Gross unrealized depreciation | — | — | ||||||
Net unrealized appreciation | $ | 7,436,696 | $ | 16,699,686 |
2014 Common Stock Tax Information (unaudited) | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
01/03/2014 | 01/13/2014 | 1/23/2014 | $ | 0.1250 | $ | 0.0928 | $ | 0.0450 | $ | — | $ | 0.0322 | ||||||||||||
04/30/2014 | 05/14/2015 | 05/22/2014 | 0.1290 | 0.0958 | 0.0464 | — | 0.0332 | |||||||||||||||||
07/31/2014 | 08/15/2014 | 08/29/2014 | 0.1300 | 0.0965 | 0.0467 | — | 0.0335 | |||||||||||||||||
10/31/2014 | 11/14/2014 | 11/28/2014 | 0.1300 | 0.0965 | 0.0467 | — | 0.0335 | |||||||||||||||||
Total 2014 Distributions | $ | 0.5140 | $ | 0.3816 | $ | 0.1848 | $ | — | $ | 0.1324 |
2013 Common Stock Tax Information (unaudited) | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
03/08/2013 | 03/06/2013 | 03/19/2013 | $ | 0.1250 | $ | 0.1250 | $ | 0.1250 | $ | — | $ | — | ||||||||||||
06/28/2013 | 06/26/2013 | 07/05/2013 | 0.1250 | 0.0367 | 0.0367 | — | 0.0883 | |||||||||||||||||
09/30/2013 | 09/26/2013 | 10/04/2013 | 0.1250 | — | — | — | 0.1250 | |||||||||||||||||
Total 2013 Distributions | $ | 0.3750 | $ | 0.1617 | $ | 0.1617 | $ | — | $ | 0.2133 |
2012 Common Stock Tax Information (unaudited) | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
02/22/2012 | 02/17/2012 | 03/01/2012 | $ | 0.1100 | $ | — | $ | — | $ | — | $ | 0.1100 | ||||||||||||
05/23/2012 | 05/21/2012 | 06/01/2012 | 0.1100 | — | — | — | 0.1100 | |||||||||||||||||
08/24/2012 | 08/22/2012 | 09/04/2012 | 0.1100 | — | — | — | 0.1100 | |||||||||||||||||
11/23/2012 | 11/20/2012 | 11/30/2012 | 0.1100 | — | — | — | 0.1100 | |||||||||||||||||
Total 2012 Distributions | $ | 0.4400 | $ | — | $ | — | $ | — | $ | 0.4400 |
|
Property and Equipment | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Land | $ | 580,000 | $ | — | ||||
Natural gas pipeline | 124,297,157 | 5,215,424 | ||||||
Vehicles and trailers | 506,958 | 125,117 | ||||||
Office equipment and computers | 59,027 | 15,627 | ||||||
Gross property and equipment | 125,443,142 | 5,356,168 | ||||||
Less: accumulated depreciation | (2,623,020 | ) | (2,037,685 | ) | ||||
Net property and equipment | $ | 122,820,122 | $ | 3,318,483 |
|
December 31, 2014 | ||||||||||||||||
December 31, 2014 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Other equity securities | $ | 9,572,181 | $ | — | $ | — | $ | 9,572,181 | ||||||||
Total Assets | $ | 9,572,181 | $ | — | $ | — | $ | 9,572,181 |
December 31, 2013 | ||||||||||||||||
December 31, 2013 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Other equity securities | 23,304,321 | — | — | 23,304,321 | ||||||||||||
Total Assets | $ | 23,304,321 | $ | — | $ | — | $ | 23,304,321 |
Level 3 Rollforward | ||||||||||||||||||||||||||||
For the Year Ended 12/31/14 | Fair Value Beginning Balance | Acquisitions | Disposals | Total Realized and Unrealized Gains Included in Net Income | Return of Capital Adjustments Impacting Cost Basis of Securities | Fair Value Ending Balance | Changes in Unrealized Gains, Included In Net Income, Relating to Securities Still Held (1) | |||||||||||||||||||||
Other equity securities | $ | 23,304,321 | $ | — | $ | (13,245,379 | ) | $ | 139,612 | $ | (981,373 | ) | $ | 9,217,181 | $ | 139,612 | ||||||||||||
Warrant investment | — | 97,500 | — | 257,500 | — | 355,000 | 257,500 | |||||||||||||||||||||
Total | $ | 23,304,321 | $ | 97,500 | $ | (13,245,379 | ) | $ | 397,112 | $ | (981,373 | ) | $ | 9,572,181 | $ | 397,112 | ||||||||||||
For the Year Ended 12/31/13 | ||||||||||||||||||||||||||||
Other equity securities | $ | 19,707,126 | $ | — | $ | — | $ | 5,292,890 | $ | (1,695,695 | ) | $ | 23,304,321 | $ | 5,292,890 | |||||||||||||
Total | $ | 19,707,126 | $ | — | $ | — | $ | 5,292,890 | $ | (1,695,695 | ) | $ | 23,304,321 | $ | 5,292,890 | |||||||||||||
Carrying and Fair Value Amounts | ||||||||||||||||||
Level within fair value hierarchy | December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
Financial Assets: | ||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 7,578,164 | $ | 7,578,164 | $ | 17,963,266 | $ | 17,963,266 | |||||||||
Escrow receivable | Level 2 | $ | 2,438,500 | $ | 2,438,500 | $ | — | $ | — | |||||||||
Financing notes receivable | Level 2 | $ | 20,687,962 | $ | 20,687,962 | $ | — | $ | — | |||||||||
Financial Liabilities: | ||||||||||||||||||
Long-term debt | Level 2 | $ | 67,060,000 | $ | 67,060,000 | $ | 70,000,000 | $ | 70,000,000 | |||||||||
Line of credit | Level 2 | $ | 32,141,277 | $ | 32,141,277 | $ | 81,935 | $ | 81,935 |
Assets | December 31, 2014 | December 31, 2013 | ||||||
Current assets | $ | 25,783,000 | $ | 23,535,000 | ||||
Noncurrent assets | 385,256,000 | 392,062,000 | ||||||
Total Assets | $ | 411,039,000 | $ | 415,597,000 | ||||
Liabilities | ||||||||
Current liabilities | $ | 14,317,000 | $ | 15,342,000 | ||||
Noncurrent liabilities | 113,810,000 | 105,563,000 | ||||||
Total Liabilities | $ | 128,127,000 | $ | 120,905,000 | ||||
Partner's equity | 282,912,000 | 294,692,000 | ||||||
Total liabilities and partner's equity | $ | 411,039,000 | $ | 415,597,000 |
For the Year Ending | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Revenues | $ | 54,906,000 | $ | 47,841,000 | ||||
Operating expenses | 56,482,000 | 41,254,000 | ||||||
Other income (expenses) | 10,632,000 | 12,907,000 | ||||||
Net income | $ | 9,056,000 | $ | 19,494,000 | ||||
EBITDA | $ | 25,753,000 | $ | 39,184,000 |
|
Intangible Lease Asset | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
Intangible lease asset | $ | 1,094,771 | $ | 1,094,771 | ||||
Accumulated amortization | (1,021,784 | ) | (729,847 | ) | ||||
Net intangible lease asset | $ | 72,987 | $ | 364,924 |
Remaining Estimated Amortization On Intangibles | ||||
Year ending December 31, | Amount | |||
2015 | 72,987 | |||
Total | $ | 72,987 |
|
Derivative Financial Instruments Measured At Fair Value on a Recurring Basis | |||||||||||||||
Balance Sheet Classification | Fair Value Hierarchy | ||||||||||||||
Balance Sheet Line Item | Level 1 | Level 2 | Level 3 | ||||||||||||
December 31, 2014 | |||||||||||||||
Hedged derivative asset | Assets | $ | — | $ | 351,807 | $ | — | ||||||||
December 31, 2013 | |||||||||||||||
Hedged derivative asset | Assets | $ | — | $ | 680,968 | $ | — | ||||||||
Level 1 – quoted prices in active markets for identical investments | |||||||||||||||
Level 2 – other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.) | |||||||||||||||
Level 3 – significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments) |
Outstanding Derivatives Designated as Cash Flow Hedges of Interest Rate Risk | ||||||||||||
Interest Rate Derivative | Number of Instruments | Notional Amount Outstanding | Floating Rate Received | Fixed Rate Paid | ||||||||
Effective Date | Termination Date | |||||||||||
Interest Rate Swap | 2 | $52,500,000 | February 5, 2013 | December 5, 2017 | 1-month US Dollar LIBOR | 0.865% |
For Year Ended December 31, | For Year Ended November 30, 2012 | For the One-Month Transition Period Ended December 31, 2012 | ||||||||||
Derivatives in Cash Flow Hedging Relationship | 2014 | 2013 | ||||||||||
Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion)1 | $ | (705,826 | ) | $ | 741,344 | $ | — | $ | — | |||
Amount of Gain (Loss) Reclassified from AOCI on Derivatives (Effective Portion) Recognized in Net Income1 | (305,945 | ) | (217,821 | ) | — | — | ||||||
Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing)1 | (897 | ) | 5,969 | — | — | |||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivative2 | $ | — | $ | (75,200 | ) | $ | — | $ | (316,756 | ) | ||
(1) Included in "Interest Expense" on the face of the Income Statement | ||||||||||||
(2)The gain or (loss) recognized in income on derivatives includes changes in fair value of the derivatives as well as the periodic cash settlements and interest accruals for derivatives not designated as hedging instruments |
Offsetting Derivatives | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||
Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||||||
Offsetting Derivative Assets as of December 31, 2014 | $ | 351,807 | $ | — | $ | 351,807 | $ | — | $ | — | $ | 351,807 | ||||||||||||
Offsetting Derivative Assets as of December 31, 2013 | $ | 680,968 | $ | — | $ | 680,968 | $ | — | $ | — | $ | 680,968 |
|
For the Fiscal Quarters Ended | ||||||||||||||||
March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | |||||||||||||
Lease revenue | $ | 6,762,408 | $ | 7,065,677 | $ | 7,191,187 | $ | 7,204,493 | ||||||||
Sales revenue | 3,259,530 | 1,813,607 | 1,741,209 | 2,894,556 | ||||||||||||
Financing revenue | 25,619 | 139,728 | 413,482 | 498,984 | ||||||||||||
Transportation revenue | — | — | — | 1,298,093 | ||||||||||||
Total revenue | 10,047,557 | 9,019,012 | 9,345,878 | 11,896,126 | ||||||||||||
Cost of sales | 2,707,358 | 1,384,998 | 1,284,711 | 1,914,901 | ||||||||||||
Transportation, maintenance and general and administrative | — | — | — | 458,872 | ||||||||||||
Management fees, net of expense reimbursements | 783,868 | 761,265 | 813,921 | 1,108,606 | ||||||||||||
All other expenses | 4,018,806 | 4,007,481 | 4,490,185 | 5,924,786 | ||||||||||||
Total expenses | 7,510,032 | 6,153,744 | 6,588,817 | 9,407,165 | ||||||||||||
Income (loss) from operations, before income taxes | 2,537,525 | 2,865,268 | 2,757,061 | 2,488,961 | ||||||||||||
Realized and unrealized gain (loss) on securities transactions, before income taxes | 1,294,182 | 2,084,026 | (865,470 | ) | (2,978,764 | ) | ||||||||||
Distributions and income from investments, net | 5,056 | 5,988 | 1,688,830 | 136,909 | ||||||||||||
Interest expense | (826,976 | ) | (819,360 | ) | (977,635 | ) | (1,051,151 | ) | ||||||||
Total other income (loss) and expense, net, before income taxes | 472,262 | 1,270,654 | (154,275 | ) | (3,893,006 | ) | ||||||||||
Income (loss) before income taxes | 3,009,787 | 4,135,922 | 2,602,786 | (1,404,045 | ) | |||||||||||
Current and deferred tax expense, net | 513,513 | 742,879 | 324,883 | (1,806,838 | ) | |||||||||||
Net income | $ | 2,496,274 | $ | 3,393,043 | $ | 2,277,903 | $ | 402,793 | ||||||||
Net income attributable to non-controlling interest | $ | 391,114 | $ | 387,135 | $ | 389,485 | $ | 388,423 | ||||||||
Net income attributable to CORR stockholders | $ | 2,105,160 | $ | 3,005,908 | $ | 1,888,418 | $ | 14,370 | ||||||||
Basic and diluted earnings per share | $ | 0.07 | $0.10 | $ | 0.06 | $ | — |
For the Fiscal Quarters Ended | ||||||||||||||||
March 31, 2013 | June 30, 2013 | September 30, 2013 | December 31, 2013 | |||||||||||||
Lease revenue | $ | 5,638,244 | $ | 5,638,244 | $ | 5,638,244 | $ | 5,638,244 | ||||||||
Sales revenue | 2,515,573 | 1,929,772 | 1,935,868 | 2,351,831 | ||||||||||||
Total revenue | 8,153,817 | 7,568,016 | 7,574,112 | 7,990,075 | ||||||||||||
Cost of sales | 2,003,639 | 1,476,348 | 1,411,318 | 1,843,360 | ||||||||||||
Management fees | 643,814 | 646,394 | 647,380 | 699,677 | ||||||||||||
All other expenses | 3,705,925 | 3,845,005 | 4,227,013 | 3,880,512 | ||||||||||||
Total expenses | 6,353,378 | 5,967,747 | 6,285,711 | 6,423,549 | ||||||||||||
Income (loss) from operations, before income taxes | 1,800,439 | 1,600,269 | 1,288,401 | 1,566,526 | ||||||||||||
Realized and unrealized gain (loss) on securities transactions, before income taxes | 2,742,049 | (30,976 | ) | 872,020 | 1,783,460 | |||||||||||
Distributions and income from investments, net | 13,124 | 2,701 | 568,332 | 657 | ||||||||||||
Interest expense, net | (737,381 | ) | (907,275 | ) | (818,134 | ) | (825,588 | ) | ||||||||
Total other income (loss) and expense, net, before income taxes | 2,017,792 | (935,550 | ) | 622,218 | 958,529 | |||||||||||
Income (loss) before income taxes | 3,818,231 | 664,719 | 1,910,619 | 2,525,055 | ||||||||||||
Current and deferred tax expense, net | 1,020,944 | 241,754 | 1,105,125 | 581,695 | ||||||||||||
Net income | $ | 2,797,287 | $ | 422,965 | $ | 805,494 | $ | 1,943,360 | ||||||||
Net income attributable to non-controlling interest | $ | 384,534 | $ | 352,893 | $ | 366,042 | $ | 363,298 | ||||||||
Net income attributable to CORR stockholders | $ | 2,412,753 | $ | 70,072 | $ | 439,452 | $ | 1,580,062 | ||||||||
Basic and diluted earnings per share | $ | 0.10 | $ | — | $ | 0.02 | $ | 0.06 |
|
CorEnergy Historical Summary Consolidated Balance Sheets | |||||||
December 31, 2012 | December 31, 2011 (Unaudited) | ||||||
Current assets | $ | 19,202,432 | $ | 5,307,970 | |||
Non-current assets | 274,459,553 | 90,623,108 | |||||
Total Assets | $ | 293,661,985 | $ | 95,931,078 | |||
Current liabilities | $ | 8,290,065 | $ | 1,552,281 | |||
Non-current liabilities | 74,529,728 | 2,894,200 | |||||
Total Liabilities | 82,819,793 | 4,446,481 | |||||
Shareholder's equity | 210,842,192 | 91,484,597 | |||||
Total Liabilities and Shareholder's Equity | $ | 293,661,985 | $ | 95,931,078 | |||
CorEnergy Historical Summary Consolidated Statements of Income | |||||||
For the One- Month Transition Period Ended December 31, 2012 | For the One- Month Period Ended December 31, 2011 (Unaudited) | ||||||
Revenues | $ | 1,726,901 | $ | 1,079,612 | |||
Expenses | 1,826,422 | 993,919 | |||||
Operating Income (Loss) | (99,521 | ) | 85,693 | ||||
Other Income (Expense), net | (2,342,365 | ) | 1,601,084 | ||||
Income (Loss) before income tax benefit (provision) | (2,441,886 | ) | 1,686,777 | ||||
Income tax benefit (provision) | 920,143 | (628,493 | ) | ||||
Net Income (Loss) | (1,521,743 | ) | 1,058,284 | ||||
Less: Net Income (Loss) attributable to non-controlling interest | (18,347 | ) | — | ||||
Net Income (Loss) attributable to CORR Stockholders | $ | (1,503,396 | ) | $ | 1,058,284 |
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