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• | Trading securities – The Company’s publicly traded equity securities are classified as trading securities and are reported at fair value as of November 30, 2012 because the Company intended to sell these 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. |
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, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Net unrealized gain on trading securities | $ | — | $ | 3,985,269 | $ | 238,617 | $ | 4,663,211 | ||||||||
Net realized gain (loss) on trading securities | (251,213 | ) | 24,664 | 2,061,358 | (6,432,269 | ) | ||||||||||
Total net realized and unrealized gain (loss) on trading securities | $ | (251,213 | ) | $ | 4,009,933 | $ | 2,299,975 | $ | (1,769,058 | ) |
• | The independent valuation firm prepares the valuations and the supporting analysis. |
• | The Investment Committee of the Board of Directors reviews the valuations and supporting analysis, prior to approving 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) |
• | Cash and Cash Equivalents — The carrying value of cash, amounts due from banks, federal funds sold and securities purchased under resale agreements approximates fair value. |
• | Escrow Receivable — The escrow receivable due the Company as of November 30, 2012, which relates to the sale of International Resource Partners, LP, was settled during the second quarter of 2013 upon satisfaction of certain post-closing obligations. The fair value of the escrow receivable reflected a discount for the potential that the full amount due to the Company would not be realized. The actual payment received in the amount of $1.006 million exceeded the balance recorded of $699 thousand, resulting in a gain of approximately $307 thousand. |
• | Long-term Debt — The fair value of the Company’s long-term debt is calculated, for disclosure purposes, by discounting future debt service requirements by a rate equal to the Company’s current expected rate for an equivalent transaction. |
• | Line of Credit — The carrying value of the line of credit approximates the fair value due to its short term nature. |
• | Lease Revenue – Income 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. Rental payments on the Pinedale LGS leased property are typically received on a monthly basis. Prior to November 2012, rental payments on the EIP leased property were typically received on a semi-annual basis and were included as lease revenue within the accompanying Consolidated Statements of Income. Upon execution of the November 2012 Purchase Agreement related to the EIP leased property (the "Purchase Agreement"), rental payments received in advance are classified as unearned revenue and included in liabilities 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 on a firm basis. 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. |
• | 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. |
• | Subsequent to November 30, 2012, the Company reallocated the amount of 2012 income and return of capital it recognized for the period December 1, 2011 to November 30, 2012 based on the 2012 tax reporting information received from the individual portfolio companies. This reclassification amounted to an increase in net distributions and dividend income on securities of $567 thousand or $0.06 per share; a decrease in net realized and unrealized gains on trading and other equity securities of $567 thousand or $0.06 per share for the year ended November 30, 2012. |
• | 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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As a Percentage of | ||||||
Leased Properties | Lease Revenues | |||||
As of December 31, 2013 | For the Year Ended December 31, 2013 | For the One-Month Transition Period December 31, 2012 | ||||
Pinedale LGS | 94.23% | 88.68% | 75.20% | |||
Public Service of New Mexico | 5.77% | 11.32% | 24.80% |
Ultra Petroleum Corp. Summary Consolidated Balance Sheets (in thousands) | |||||||
December 31, 2013 | December 31, 2012 | ||||||
Current assets | $ | 128,631 | $ | 125,848 | |||
Non-current assets | 2,656,688 | 1,881,497 | |||||
Total Assets | $ | 2,785,319 | $ | 2,007,345 | |||
Current liabilities | 407,476 | 514,092 | |||||
Non-current liabilities | 2,709,333 | 2,071,120 | |||||
Total Liabilities | $ | 3,116,809 | $ | 2,585,212 | |||
Shareholder's (deficit) | (331,490 | ) | (577,867 | ) | |||
Total Liabilities and Shareholder's Equity | $ | 2,785,319 | $ | 2,007,345 | |||
Ultra Petroleum Corp. Summary Consolidated Statements of Operations (in thousands) | |||||||
For the Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | $ | 933,404 | $ | 809,974 | |||
Expenses | 561,138 | 3,655,252 | |||||
Operating Income (Loss) | 372,266 | (2,845,278 | ) | ||||
Other Income (Expense), net | (138,044 | ) | (31,833 | ) | |||
Income (Loss) before income tax provision (benefit) | 234,222 | (2,877,111 | ) | ||||
Income tax provision (benefit) | (3,616 | ) | (700,213 | ) | |||
Net Income (Loss) | $ | 237,838 | $ | (2,176,898 | ) |
Future Minimum Lease Receipts | ||||
Years Ending December 31, | Amount | |||
2014 | $ | 24,573,005 | ||
2015 | 20,000,000 | |||
2016 | 20,000,000 | |||
2017 | 20,000,000 | |||
2018 | 20,000,000 | |||
Thereafter | 180,000,000 | |||
Total | $ | 284,573,005 |
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Deferred Tax Assets and Liabilities | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Organization costs | $ | — | $ | (17,668 | ) | $ | (27,188 | ) | ||||
Net operating loss carryforwards | (65,248 | ) | (6,411,230 | ) | — | |||||||
Net unrealized loss on investment securities | — | — | (143,822 | ) | ||||||||
Cost recovery of leased and fixed assets | (966,914 | ) | (36,443 | ) | — | |||||||
Asset acquisition costs | — | (134,415 | ) | (158,535 | ) | |||||||
AMT and State of Kansas credit | — | (196,197 | ) | — | ||||||||
Sub-total | $ | (1,032,162 | ) | $ | (6,795,953 | ) | $ | (329,545 | ) | |||
Deferred Tax Liabilities: | ||||||||||||
Basis reduction of investment in partnerships | $ | 6,335,805 | $ | 11,655,817 | $ | 2,675,142 | ||||||
Net unrealized gain on investment securities | 28,444 | 2,312,269 | — | |||||||||
Cost recovery of leased assets | — | — | 50,446 | |||||||||
Sub-total | 6,364,249 | 13,968,086 | 2,725,588 | |||||||||
Total net deferred tax liability | $ | 5,332,087 | $ | 7,172,133 | $ | 2,396,043 |
Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Application of statutory income tax rate | $ | 2,608,151 | $ | 6,852,179 | $ | 1,331,750 | $ | (848,239 | ) | |||||||
State income taxes, net of federal tax benefit | 273,174 | 442,455 | 133,158 | (64,771 | ) | |||||||||||
Dividends received deduction | — | (1,221 | ) | (86 | ) | (7,133 | ) | |||||||||
Income of Real Estate Investment Trust not subject to tax | (927,254 | ) | — | — | — | |||||||||||
Impact of effective tax rate change due to REIT election | 995,447 | — | — | — | ||||||||||||
Other | — | (64,479 | ) | (581,965 | ) | — | ||||||||||
Total income tax expense | $ | 2,949,518 | $ | 7,228,934 | $ | 882,857 | $ | (920,143 | ) |
Components of Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Current tax expense (benefit) | ||||||||||||||||
Federal | $ | (7,139 | ) | $ | — | $ | — | $ | 3,610,165 | |||||||
State (net of federal tax benefit) | 20,613 | 38,107 | 53,650 | 245,782 | ||||||||||||
AMT benefit | — | (8,842 | ) | 200,000 | — | |||||||||||
Total current tax expense (benefit) | 13,474 | 29,265 | 253,650 | 3,855,947 | ||||||||||||
Deferred tax expense (benefit) | ||||||||||||||||
Federal | 2,683,483 | 6,762,974 | 585,386 | (4,465,104 | ) | |||||||||||
State (net of federal tax benefit) | 252,561 | 436,695 | 43,821 | (310,986 | ) | |||||||||||
Total deferred tax expense (benefit) | 2,936,044 | 7,199,669 | 629,207 | (4,776,090 | ) | |||||||||||
Total income tax expense (benefit), net | $ | 2,949,518 | $ | 7,228,934 | $ | 882,857 | $ | (920,143 | ) |
Aggregate Cost of Securities for Income Tax Purposes | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Aggregate cost for federal income tax purposes | $ | 6,604,636 | $ | 41,995,195 | $ | 22,007,069 | ||||||
Gross unrealized appreciation | 16,699,686 | 33,892,176 | 2,018,455 | |||||||||
Gross unrealized depreciation | — | (801,340 | ) | — | ||||||||
Net unrealized appreciation | $ | 16,699,686 | $ | 33,090,836 | $ | 2,018,455 |
2013 Common Stock Tax Information | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
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 |
2011 Common Stock Tax Information | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
02/18/2011 | 02/16/2011 | 03/01/2011 | $ | 0.1000 | $ | 0.1000 | $ | 0.1000 | $ | — | $ | — | ||||||||||||
05/24/2011 | 05/20/2011 | 06/01/2011 | 0.1000 | 0.1000 | 0.1000 | — | — | |||||||||||||||||
08/24/2011 | 08/22/2011 | 09/01/2011 | 0.1000 | 0.1000 | 0.1000 | — | — | |||||||||||||||||
11/22/2011 | 11/18/2011 | 11/30/2011 | 0.1100 | 0.1100 | 0.1100 | — | — | |||||||||||||||||
Total 2011 Distributions | $ | 0.4100 | $ | 0.4100 | $ | 0.4100 | $ | — | $ | — |
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Property and Equipment | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Natural gas pipeline | $ | 5,215,424 | $ | 5,215,424 | $ | 5,215,424 | ||||||
Vehicles and trailers | 125,117 | 110,782 | 110,782 | |||||||||
Computers | 15,627 | 14,018 | 14,440 | |||||||||
Gross property and equipment | 5,356,168 | 5,340,224 | 5,340,646 | |||||||||
Less: accumulated depreciation | (2,037,685 | ) | (1,751,202 | ) | (1,774,616 | ) | ||||||
Net property and equipment | $ | 3,318,483 | $ | 3,589,022 | $ | 3,566,030 |
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December 31, 2013 | ||||||||||||||||
December 31, 2013 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Trading securities | $ | — | $ | — | $ | — | $ | — | ||||||||
Other equity securities | 23,304,321 | — | — | 23,304,321 | ||||||||||||
Total Assets | $ | 23,304,321 | $ | — | $ | — | $ | 23,304,321 |
November 30, 2012 | ||||||||||||||||
November 30, 2012 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Trading securities | $ | 55,219,411 | $ | 27,480,191 | $ | 27,739,220 | $ | — | ||||||||
Other equity securities | 19,866,621 | — | — | 19,866,621 | ||||||||||||
Total Assets | $ | 75,086,032 | $ | 27,480,191 | $ | 27,739,220 | $ | 19,866,621 |
December 31, 2012 | ||||||||||||||||
December 31, 2012 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Trading securities | $ | 4,318,398 | $ | 4,318,398 | $ | — | $ | — | ||||||||
Other equity securities | 19,707,126 | — | — | 19,707,126 | ||||||||||||
Total Assets | $ | 24,025,524 | $ | 4,318,398 | $ | — | $ | 19,707,126 |
For the Years Ended | For the One-Month Transition Period Ended | ||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||
Fair value beginning balance | $ | 19,707,126 | $ | 41,856,730 | $ | 19,866,621 | |||||
Total realized and unrealized gains (losses) included in net income | 5,292,890 | 16,190,428 | (159,495 | ) | |||||||
Sales | — | (35,919,672 | ) | — | |||||||
Return of capital adjustments impacting cost basis of securities | (1,695,695 | ) | (2,260,865 | ) | — | ||||||
Fair value ending balance | $ | 23,304,321 | $ | 19,866,621 | $ | 19,707,126 | |||||
Changes in unrealized gains, included in net income, relating to securities still held (1) | $ | 5,292,890 | $ | 5,018,152 | $ | (159,495 | ) |
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% |
November 30, 2012 | ||||||||||||||
Unobservable Inputs | Range | Weighted Average | ||||||||||||
Assets at Fair Value | Fair Value | Valuation Technique | Low | High | ||||||||||
Other equity securities, at fair value | $ | 19,866,621 | Public company historical EBITDA analysis | Historical EBITDA Valuation Multiples | 9.4x | 10.4x | 9.95x | |||||||
Public company projected EBITDA analysis | Projected EBITDA Valuation Multiples | 8.1x | 9.8x | 8.95x | ||||||||||
Public company yield analysis | Distributable Cash Flow Yield | 8.11% | 9.11% | 8.61% | ||||||||||
M&A company analysis | EV/LTM 2012 EBITDA | 9.3x | 9.9x | 9.6x | ||||||||||
Discounted cash flow | Weighted Average Cost of Capital | 9.5% | 13.0% | 11.25% |
December 31, 2012 | ||||||||||||||
Unobservable Inputs | Range | Weighted Average | ||||||||||||
Assets at Fair Value | Fair Value | Valuation Technique | Low | High | ||||||||||
Other equity securities, at fair value | $ | 19,707,126 | Public company historical EBITDA analysis | Historical EBITDA Valuation Multiples | 9.5x | 11.6x | 10.6x | |||||||
Public company projected EBITDA analysis | Projected EBITDA Valuation Multiples | 8.8x | 10.1x | 9.5x | ||||||||||
M&A company analysis | EV/LTM 2012 EBITDA | 8.9x | 10.3x | 9.6x | ||||||||||
Discounted cash flow | Weighted Average Cost of Capital | 9.5% | 13.0% | 11.3% |
Revenues | $ | 127,356,000 | Current assets | $ | 36,726,000 | |||||
Operating expenses | $ | 66,167,000 | Noncurrent assets | $ | 417,998,000 | |||||
Net income | $ | 33,360,000 | Current liabilities | $ | 28,285,000 | |||||
Noncurrent liabilities | $ | 191,405,000 | ||||||||
Partner's equity | $ | 235,034,000 |
Carrying and Fair Value Amounts | ||||||||||||||||||||||||||
Level within fair value hierarchy | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 17,963,266 | $ | 17,963,266 | $ | 14,333,456 | $ | 14,333,456 | $ | 17,680,783 | $ | 17,680,783 | |||||||||||||
Escrow receivable | Level 2 | $ | — | $ | — | $ | 698,729 | $ | 698,729 | $ | 698,729 | $ | 698,729 | |||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||
Long-term debt | Level 2 | $ | 70,000,000 | $ | 70,000,000 | $ | — | $ | — | $ | 70,000,000 | $ | 70,000,000 | |||||||||||||
Line of credit | Level 1 | $ | 81,935 | $ | 81,935 | $ | 120,000 | $ | 120,000 | $ | — | $ | — |
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Intangible Lease Asset | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Intangible lease asset | $ | 1,094,771 | $ | 1,094,771 | $ | 1,094,771 | ||||||
Accumulated amortization | (729,847 | ) | (413,580 | ) | (437,908 | ) | ||||||
Net intangible lease asset | $ | 364,924 | $ | 681,191 | $ | 656,863 |
Remaining Estimated Amortization On Intangibles | ||||
Year ending December 31, | Amount | |||
2014 | 291,939 | |||
2015 | 72,985 | |||
Total | $ | 364,924 |
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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, 2013 | |||||||||||||||
Hedged derivative asset | Assets | $ | — | $ | 680,968 | $ | — | ||||||||
Hedged derivative liability | Liabilities | $ | — | $ | — | $ | — | ||||||||
December 31, 2012 | |||||||||||||||
Prepaid expenses and other assets | Assets | $ | — | $ | — | $ | — | ||||||||
Accounts payable and other accrued liabilities | Liabilities | $ | — | $ | 316,756 | $ | — | ||||||||
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% |
Effect of Derivative Financial Instruments on Income Statement | ||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Net Income (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCI on Derivatives (Effective Portion) Recognized in Net Income * | Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing) | |||||||||||||||||||||||||
For the years ended: | December 31, 2013 | November 30, 2012 | December 31, 2013 | November 30, 2012 | December 31, 2013 | November 30, 2012 | ||||||||||||||||||||||||
Interest Rate Swaps | $ | 741,344 | $ | — | Interest Expense | $ | (217,821 | ) | $ | — | Interest Expense | $ | 5,969 | $ | — | |||||||||||||||
For the one-month transition period ended: | December 31, 2012 | December 31, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Interest Rate Swaps | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative * | ||||||||||||||||||||||||||||
For the Years Ended | For the One-Month transition Period Ended December 31, 2012 | |||||||||||||||||||||||||||||
December 31, 2013 | November 30, 2012 | |||||||||||||||||||||||||||||
Interest Rate Swaps | Interest Expense | $ | (75,200 | ) | $ | — | $ | (316,756 | ) | |||||||||||||||||||||
* 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, 2013 | $ | 680,968 | $ | — | $ | 680,968 | $ | — | $ | — | $ | 680,968 | ||||||||||||
Offsetting Derivative Liabilities as of December 31, 2012 | $ | 316,756 | $ | — | $ | 316,756 | $ | — | $ | — | $ | 316,756 |
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|
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, net of expense reimbursements | 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 | ||||||||||||
Income tax 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 | $0.00 | $ | 0.02 | $ | 0.06 |
For the Fiscal Quarters Ended | ||||||||||||||||
February 28, 2012 | May 31, 2012 | August 31, 2012 | November 30, 2012 | |||||||||||||
Lease income | $ | 638,244 | $ | 638,244 | $ | 638,244 | $ | 638,243 | ||||||||
Sales revenue | 2,437,310 | 1,439,958 | 1,927,626 | 2,216,128 | ||||||||||||
Total revenue | 3,075,554 | 2,078,202 | 2,565,870 | 2,854,371 | ||||||||||||
Cost of sales | 2,004,672 | 1,031,114 | 1,381,161 | 1,661,155 | ||||||||||||
Management fees, net of expense reimbursements | 247,381 | 254,965 | 298,051 | 246,399 | ||||||||||||
All other expenses | 599,865 | 892,759 | 1,082,911 | 1,117,268 | ||||||||||||
Total expenses | 2,851,918 | 2,178,838 | 2,762,123 | 3,024,822 | ||||||||||||
Income (loss) from operations, before income taxes | 223,636 | (100,636 | ) | (196,253 | ) | (170,451 | ) | |||||||||
Realized and unrealized gain (loss) on securities transactions, before income taxes | 8,931,466 | 3,237,325 | 8,492,502 | (479,416 | ) | |||||||||||
Distributions and income from investments, net | 85,262 | 55,462 | (502,176 | ) | 82,057 | |||||||||||
Interest Expense | (27,409 | ) | (25,229 | ) | (16,780 | ) | (11,705 | ) | ||||||||
Total other income (loss) and expense, net, before income taxes | 8,989,319 | 3,267,558 | 7,973,546 | (409,064 | ) | |||||||||||
Income (loss) before income taxes | 9,212,955 | 3,166,922 | 7,777,293 | (579,515 | ) | |||||||||||
Current and deferred tax expense, net | (3,465,914 | ) | (1,190,162 | ) | (2,788,785 | ) | 215,927 | |||||||||
Net income | $ | 5,747,041 | $ | 1,976,760 | $ | 4,988,508 | $ | (363,588 | ) | |||||||
Basic and diluted earnings (loss) per share | $ | 0.63 | $ | 0.21 | $ | 0.54 | $ | (0.04 | ) |
|
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 |
|
|
December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||
Assets | |||||||||||
Leased property, net of accumulated depreciation of $3,790,570, $1,131,680, and $1,327,517 at December 31, 2013, November 30, 2012, and December 31, 2012, respectively | $ | 15,374,167 | $ | 12,995,169 | $ | 17,592,988 | |||||
Investments | 135,574,270 | 20,697,003 | 151,857,174 | ||||||||
Cash and cash equivalents | 16,649,618 | 14,289,425 | 16,504,354 | ||||||||
Trading securities, at fair value | — | 55,219,411 | — | ||||||||
Due from subsidiary | 3,972,006 | — | — | ||||||||
Note receivable from subsidiary | 5,300,000 | 3,800,000 | 5,300,000 | ||||||||
Escrow receivable | — | 698,729 | — | ||||||||
Lease receivable | 711,229 | — | — | ||||||||
Intangible lease asset, net of accumulated amortization of $729,847, $413,580, and $437,908 at December 31, 2013, November 30, 2012, and December 31, 2012 respectively | 364,924 | 681,191 | 656,863 | ||||||||
Deferred debt issuance costs, net of accumulated amortization of $56,019, $0 and $448 at December 31, 2013, November 30, 2012, and December 31, 2012, respectively | 235,693 | — | 41,262 | ||||||||
Deferred lease costs, net of accumulated amortization of $5,490, $0, and $172 at December 31, 2013, November 30, 2012, and December 31, 2012, respectively | 74,286 | — | 79,604 | ||||||||
Income tax receivable | 512,060 | — | — | ||||||||
Prepaid expenses and other assets | 156,153 | 2,078,724 | 75,665 | ||||||||
Total Assets | $ | 178,924,406 | $ | 110,459,652 | $ | 192,107,910 | |||||
Liabilities and Equity | |||||||||||
Long-term debt | $ | — | $ | — | $ | — | |||||
Accounts payable and other accrued liabilities | 1,731,066 | 2,060,972 | 2,861,696 | ||||||||
Distributions payable to non-controlling interest | — | — | — | ||||||||
Lease obligation | — | — | — | ||||||||
Income tax liability | — | — | 3,855,947 | ||||||||
Deferred tax liability | — | 7,172,133 | 2,396,043 | ||||||||
Line of credit | — | — | — | ||||||||
Unearned revenue | — | 2,370,762 | 2,133,685 | ||||||||
Total Liabilities | $ | 1,731,066 | $ | 11,603,867 | $ | 11,247,371 | |||||
Equity | |||||||||||
Warrants, no par value; 945,594 issued and outstanding at December 31, 2013, November 30, 2012, and December 31, 2012 (5,000,000 authorized) | $ | 1,370,700 | $ | 1,370,700 | $ | 1,370,700 | |||||
Capital stock, non-convertible, $0.001 par value; 24,156,163 shares issued and outstanding at December 31, 2013, 9,190,667 shares issued and outstanding at November 30, 2012, and 24,140,667 shares issued and outstanding at December 31, 2012 (100,000,000 shares authorized) | 24,156 | 9,191 | 24,141 | ||||||||
Additional paid-in capital | 173,441,019 | 91,763,475 | 175,256,675 | ||||||||
Accumulated retained earnings | 1,580,062 | 5,712,419 | 4,209,023 | ||||||||
Accumulated other comprehensive income | 777,403 | — | — | ||||||||
Total Equity | 177,193,340 | 98,855,785 | 180,860,539 | ||||||||
Total Liabilities and Equity | $ | 178,924,406 | $ | 110,459,652 | $ | 192,107,910 |
For the Years Ended | For the One-Month Transition Period Ended December 31, 2012 | ||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | |||||||||||||
Revenue | |||||||||||||||
Lease revenue | $ | 2,552,976 | $ | 2,552,975 | $ | 1,063,740 | $ | 212,748 | |||||||
Earnings (loss) from subsidiary | 5,720,413 | 356,336 | 86,967 | (22,313 | ) | ||||||||||
Total Revenue | 8,273,389 | 2,909,311 | 1,150,707 | 190,435 | |||||||||||
Expenses | |||||||||||||||
Management fees, net of expense reimbursements | 366,863 | 1,046,796 | 968,163 | 155,242 | |||||||||||
Asset acquisition expenses | 806,083 | 377,834 | 638,185 | 64,734 | |||||||||||
Professional fees | 198,562 | 1,141,045 | 548,759 | 282,303 | |||||||||||
Depreciation expense | 2,463,052 | 837,371 | 294,309 | 195,838 | |||||||||||
Amortization expense | 5,320 | — | — | 172 | |||||||||||
Directors’ fees | 24,788 | 85,050 | 70,192 | 6,000 | |||||||||||
Other expenses | 113,001 | 232,248 | 205,795 | 27,500 | |||||||||||
Total Expenses | 3,977,669 | 3,720,344 | 2,725,403 | 731,789 | |||||||||||
Operating Income (Loss) | $ | 4,295,720 | $ | (811,033 | ) | $ | (1,574,696 | ) | $ | (541,354 | ) | ||||
Other Income (Expense) | |||||||||||||||
Net distributions and dividend income | $ | 6,681 | $ | 261,472 | $ | 786,151 | $ | 48,136 | |||||||
Net realized and unrealized gain (loss) on trading securities | — | 4,009,933 | 2,299,975 | (1,769,058 | ) | ||||||||||
Net realized and unrealized gain (loss) on other equity securities | — | 16,171,944 | 2,283,773 | (159,495 | ) | ||||||||||
Other Income | — | — | 40,000 | — | |||||||||||
Interest expense (income) | (703,091 | ) | 54,661 | 30,203 | 1,768 | ||||||||||
Total Other Income (Expense) | 709,772 | 20,388,688 | 5,379,696 | (1,882,185 | ) | ||||||||||
Income (Loss) before income taxes | 5,005,492 | 19,577,655 | 3,805,000 | (2,423,539 | ) | ||||||||||
Taxes | |||||||||||||||
Current tax expense (benefit) | (540,111 | ) | 29,265 | 253,650 | 3,855,947 | ||||||||||
Deferred tax expense (benefit) | 1,043,264 | 7,199,669 | 629,207 | (4,776,090 | ) | ||||||||||
Income tax expense (benefit), net | 503,153 | 7,228,934 | 882,857 | (920,143 | ) | ||||||||||
Net Income (Loss) | 4,502,339 | 12,348,721 | 2,922,143 | (1,503,396 | ) | ||||||||||
Other comprehensive income: | |||||||||||||||
Changes in fair value of qualifying hedges | 777,403 | — | — | — | |||||||||||
Total Comprehensive Income | $ | 5,279,742 | $ | — | $ | — | $ | — |
For the Years Ended | For the One-Month Transition Period Ended December 31, 2012 | ||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | |||||||||||||
Net cash provided by operating activities | $ | (8,040,654 | ) | $ | 9,391,301 | $ | 2,284,927 | $ | 223,494 | ||||||
Investing Activities | |||||||||||||||
Purchases of long-term investments of trading and other equity securities | — | — | (38,060,281 | ) | — | ||||||||||
Proceeds from sale of long-term investment of trading and other equity securities | — | 9,983,169 | 53,950,583 | 26,085,740 | |||||||||||
Deferred lease costs | — | — | — | (796,649 | ) | ||||||||||
Investment in consolidated subsidiaries | — | — | — | (108,300,100 | ) | ||||||||||
Cash distributions from consolidated subsidiaries | 19,337,911 | 281,133 | 71,023 | 483,346 | |||||||||||
Acquisition expenditures | (1,651,956 | ) | (942,707 | ) | — | 2,318 | |||||||||
Cash paid in business combination | — | — | (12,250,000 | ) | — | ||||||||||
Net cash provided by investing activities | $ | 17,685,955 | $ | 9,321,595 | $ | 3,711,325 | $ | (82,525,345 | ) | ||||||
Financing Activities | |||||||||||||||
Debt financing costs | (30,002 | ) | (1,054,302 | ) | — | — | |||||||||
Net offering proceeds | (523,094 | ) | — | — | 84,516,780 | ||||||||||
Dividends | (8,946,941 | ) | (3,919,249 | ) | (3,503,365 | ) | — | ||||||||
Payments on long-term debt | — | (2,188,000 | ) | (1,221,000 | ) | — | |||||||||
Net cash used in financing activities | $ | (9,500,037 | ) | $ | (7,161,551 | ) | $ | (4,724,365 | ) | $ | 84,516,780 | ||||
Net Change in Cash and Cash Equivalents | $ | 145,264 | $ | 11,551,345 | $ | 1,271,887 | $ | 2,214,929 | |||||||
Cash and Cash Equivalents at beginning of period | 16,504,354 | 2,738,080 | 1,466,193 | 14,289,425 | |||||||||||
Cash and Cash Equivalents at end of period | $ | 16,649,618 | $ | 14,289,425 | $ | 2,738,080 | $ | 16,504,354 | |||||||
See accompanying notes to condensed financial statements. |
Supplemental Disclosure of Cash Flow Information | |||||||||||||||
Interest paid | $ | — | $ | 176,595 | $ | 176,595 | $ | 2,765 | |||||||
Income taxes paid (net of refunds) | $ | 3,761,161 | $ | 96,000 | $ | 253,650 | $ | — | |||||||
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 | $ | (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 | $ | (523,094 | ) | $ | — | $ | — | $ | 391,322 | ||||||
Change in accounts payable and accrued expenses related to debt financing costs | $ | 220,000 | $ | — | $ | — | $ | (395,284 | ) | ||||||
Reinvestment of distributions by common stockholders in additional common shares | $ | 108,119 | $ | 121,024 | $ | 252,242 | $ | — |
|
Initial Cost to Company | Gross Amount Carried at Close of Period 12/31/13 | |||||||||||||||||||||||||||||||||||
Description | Location | Date Acquired | Land | Building & Fixtures | Land | Building & Fixtures | Total | Accumulated Depreciation | Investment in Real Estate, Net at 12/31/13 | Encumbrances | ||||||||||||||||||||||||||
Pinedale LGS1 | Pinedale, WY | 2012 | $ | 105,485,063 | $ | 125,119,062 | $ | 105,485,063 | $ | 125,119,062 | $ | 230,604,125 | $ | 9,154,337 | $ | 221,449,788 | $ | 70,000,000 | ||||||||||||||||||
Eastern Interconnect Project | Albuquerque, NM | 2011 | — | 14,126,849 | — | 14,126,849 | 14,126,849 | 3,600,251 | 10,526,598 | — | ||||||||||||||||||||||||||
$ | 105,485,063 | $ | 139,245,911 | $ | 105,485,063 | $ | 139,245,911 | $ | 244,730,974 | $ | 12,754,588 | $ | 231,976,386 | $ | 70,000,000 | |||||||||||||||||||||
Pre-Acquisition Costs | $ | — | $ | 244,232 | $ | — | $ | 244,232 | $ | 244,232 | $ | — | $ | 244,232 | $ | — | ||||||||||||||||||||
$ | 105,485,063 | $ | 139,490,143 | $ | 105,485,063 | $ | 139,490,143 | $ | 244,975,206 | $ | 12,754,588 | $ | 232,220,618 | $ | 70,000,000 |
For the Years Ended | For the One-Month Transition Period Ended December 31, 2012 | ||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | |||||||||||||
Investment in real estate: | |||||||||||||||
Balance, beginning of year | $ | 244,686,333 | $ | 14,126,849 | $ | — | $ | 14,126,849 | |||||||
Addition: Acquisitions and developments | 288,873 | — | 14,126,849 | 230,559,484 | |||||||||||
Deduction: Dispositions and other | — | — | — | — | |||||||||||
Balance, end of year | $ | 244,975,206 | $ | 14,126,849 | $ | 14,126,849 | $ | 244,686,333 | |||||||
Accumulated depreciation: | |||||||||||||||
Balance, beginning of year | $ | 1,607,624 | $ | 294,309 | $ | — | $ | 1,131,680 | |||||||
Addition: Depreciation | 11,146,964 | 837,371 | 294,309 | 475,944 | |||||||||||
Deduction: Dispositions and other | — | — | — | — | |||||||||||
Balance, end of year | $ | 12,754,588 | $ | 1,131,680 | $ | 294,309 | $ | 1,607,624 |
|
• | Trading securities – The Company’s publicly traded equity securities are classified as trading securities and are reported at fair value as of November 30, 2012 because the Company intended to sell these 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. |
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, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Net unrealized gain on trading securities | $ | — | $ | 3,985,269 | $ | 238,617 | $ | 4,663,211 | ||||||||
Net realized gain (loss) on trading securities | (251,213 | ) | 24,664 | 2,061,358 | (6,432,269 | ) | ||||||||||
Total net realized and unrealized gain (loss) on trading securities | $ | (251,213 | ) | $ | 4,009,933 | $ | 2,299,975 | $ | (1,769,058 | ) |
• | The independent valuation firm prepares the valuations and the supporting analysis. |
• | The Investment Committee of the Board of Directors reviews the valuations and supporting analysis, prior to approving 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) |
• | Cash and Cash Equivalents — The carrying value of cash, amounts due from banks, federal funds sold and securities purchased under resale agreements approximates fair value. |
• | Escrow Receivable — The escrow receivable due the Company as of November 30, 2012, which relates to the sale of International Resource Partners, LP, was settled during the second quarter of 2013 upon satisfaction of certain post-closing obligations. The fair value of the escrow receivable reflected a discount for the potential that the full amount due to the Company would not be realized. The actual payment received in the amount of $1.006 million exceeded the balance recorded of $699 thousand, resulting in a gain of approximately $307 thousand. |
• | Long-term Debt — The fair value of the Company’s long-term debt is calculated, for disclosure purposes, by discounting future debt service requirements by a rate equal to the Company’s current expected rate for an equivalent transaction. |
• | Line of Credit — The carrying value of the line of credit approximates the fair value due to its short term nature. |
• | Lease Revenue – Income 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. Rental payments on the Pinedale LGS leased property are typically received on a monthly basis. Prior to November 2012, rental payments on the EIP leased property were typically received on a semi-annual basis and were included as lease revenue within the accompanying Consolidated Statements of Income. Upon execution of the November 2012 Purchase Agreement related to the EIP leased property (the "Purchase Agreement"), rental payments received in advance are classified as unearned revenue and included in liabilities 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 on a firm basis. 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. |
• | 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. |
• | Subsequent to November 30, 2012, the Company reallocated the amount of 2012 income and return of capital it recognized for the period December 1, 2011 to November 30, 2012 based on the 2012 tax reporting information received from the individual portfolio companies. This reclassification amounted to an increase in net distributions and dividend income on securities of $567 thousand or $0.06 per share; a decrease in net realized and unrealized gains on trading and other equity securities of $567 thousand or $0.06 per share for the year ended November 30, 2012. |
• | 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. |
|
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, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Net unrealized gain on trading securities | $ | — | $ | 3,985,269 | $ | 238,617 | $ | 4,663,211 | ||||||||
Net realized gain (loss) on trading securities | (251,213 | ) | 24,664 | 2,061,358 | (6,432,269 | ) | ||||||||||
Total net realized and unrealized gain (loss) on trading securities | $ | (251,213 | ) | $ | 4,009,933 | $ | 2,299,975 | $ | (1,769,058 | ) |
|
As a Percentage of | ||||||
Leased Properties | Lease Revenues | |||||
As of December 31, 2013 | For the Year Ended December 31, 2013 | For the One-Month Transition Period December 31, 2012 | ||||
Pinedale LGS | 94.23% | 88.68% | 75.20% | |||
Public Service of New Mexico | 5.77% | 11.32% | 24.80% |
Future Minimum Lease Receipts | ||||
Years Ending December 31, | Amount | |||
2014 | $ | 24,573,005 | ||
2015 | 20,000,000 | |||
2016 | 20,000,000 | |||
2017 | 20,000,000 | |||
2018 | 20,000,000 | |||
Thereafter | 180,000,000 | |||
Total | $ | 284,573,005 |
Ultra Petroleum Corp. Summary Consolidated Balance Sheets (in thousands) | |||||||
December 31, 2013 | December 31, 2012 | ||||||
Current assets | $ | 128,631 | $ | 125,848 | |||
Non-current assets | 2,656,688 | 1,881,497 | |||||
Total Assets | $ | 2,785,319 | $ | 2,007,345 | |||
Current liabilities | 407,476 | 514,092 | |||||
Non-current liabilities | 2,709,333 | 2,071,120 | |||||
Total Liabilities | $ | 3,116,809 | $ | 2,585,212 | |||
Shareholder's (deficit) | (331,490 | ) | (577,867 | ) | |||
Total Liabilities and Shareholder's Equity | $ | 2,785,319 | $ | 2,007,345 | |||
Ultra Petroleum Corp. Summary Consolidated Statements of Operations (in thousands) | |||||||
For the Years Ended December 31, | |||||||
2013 | 2012 | ||||||
Revenues | $ | 933,404 | $ | 809,974 | |||
Expenses | 561,138 | 3,655,252 | |||||
Operating Income (Loss) | 372,266 | (2,845,278 | ) | ||||
Other Income (Expense), net | (138,044 | ) | (31,833 | ) | |||
Income (Loss) before income tax provision (benefit) | 234,222 | (2,877,111 | ) | ||||
Income tax provision (benefit) | (3,616 | ) | (700,213 | ) | |||
Net Income (Loss) | $ | 237,838 | $ | (2,176,898 | ) |
|
Deferred Tax Assets and Liabilities | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Deferred Tax Assets: | ||||||||||||
Organization costs | $ | — | $ | (17,668 | ) | $ | (27,188 | ) | ||||
Net operating loss carryforwards | (65,248 | ) | (6,411,230 | ) | — | |||||||
Net unrealized loss on investment securities | — | — | (143,822 | ) | ||||||||
Cost recovery of leased and fixed assets | (966,914 | ) | (36,443 | ) | — | |||||||
Asset acquisition costs | — | (134,415 | ) | (158,535 | ) | |||||||
AMT and State of Kansas credit | — | (196,197 | ) | — | ||||||||
Sub-total | $ | (1,032,162 | ) | $ | (6,795,953 | ) | $ | (329,545 | ) | |||
Deferred Tax Liabilities: | ||||||||||||
Basis reduction of investment in partnerships | $ | 6,335,805 | $ | 11,655,817 | $ | 2,675,142 | ||||||
Net unrealized gain on investment securities | 28,444 | 2,312,269 | — | |||||||||
Cost recovery of leased assets | — | — | 50,446 | |||||||||
Sub-total | 6,364,249 | 13,968,086 | 2,725,588 | |||||||||
Total net deferred tax liability | $ | 5,332,087 | $ | 7,172,133 | $ | 2,396,043 |
Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Application of statutory income tax rate | $ | 2,608,151 | $ | 6,852,179 | $ | 1,331,750 | $ | (848,239 | ) | |||||||
State income taxes, net of federal tax benefit | 273,174 | 442,455 | 133,158 | (64,771 | ) | |||||||||||
Dividends received deduction | — | (1,221 | ) | (86 | ) | (7,133 | ) | |||||||||
Income of Real Estate Investment Trust not subject to tax | (927,254 | ) | — | — | — | |||||||||||
Impact of effective tax rate change due to REIT election | 995,447 | — | — | — | ||||||||||||
Other | — | (64,479 | ) | (581,965 | ) | — | ||||||||||
Total income tax expense | $ | 2,949,518 | $ | 7,228,934 | $ | 882,857 | $ | (920,143 | ) |
Components of Income Tax Expense (Benefit) | ||||||||||||||||
For the Years Ended | For the One-Month Transition Period Ended | |||||||||||||||
December 31, 2013 | November 30, 2012 | November 30, 2011 | December 31, 2012 | |||||||||||||
Current tax expense (benefit) | ||||||||||||||||
Federal | $ | (7,139 | ) | $ | — | $ | — | $ | 3,610,165 | |||||||
State (net of federal tax benefit) | 20,613 | 38,107 | 53,650 | 245,782 | ||||||||||||
AMT benefit | — | (8,842 | ) | 200,000 | — | |||||||||||
Total current tax expense (benefit) | 13,474 | 29,265 | 253,650 | 3,855,947 | ||||||||||||
Deferred tax expense (benefit) | ||||||||||||||||
Federal | 2,683,483 | 6,762,974 | 585,386 | (4,465,104 | ) | |||||||||||
State (net of federal tax benefit) | 252,561 | 436,695 | 43,821 | (310,986 | ) | |||||||||||
Total deferred tax expense (benefit) | 2,936,044 | 7,199,669 | 629,207 | (4,776,090 | ) | |||||||||||
Total income tax expense (benefit), net | $ | 2,949,518 | $ | 7,228,934 | $ | 882,857 | $ | (920,143 | ) |
Aggregate Cost of Securities for Income Tax Purposes | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Aggregate cost for federal income tax purposes | $ | 6,604,636 | $ | 41,995,195 | $ | 22,007,069 | ||||||
Gross unrealized appreciation | 16,699,686 | 33,892,176 | 2,018,455 | |||||||||
Gross unrealized depreciation | — | (801,340 | ) | — | ||||||||
Net unrealized appreciation | $ | 16,699,686 | $ | 33,090,836 | $ | 2,018,455 |
2013 Common Stock Tax Information | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
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 |
2011 Common Stock Tax Information | ||||||||||||||||||||||||
Record Date | Ex-Dividend Date | Payable Date | Total Distribution per Share | Total Ordinary Dividends | Qualified Dividends | Capital Gain Distributions | Nondividend Distributions | |||||||||||||||||
02/18/2011 | 02/16/2011 | 03/01/2011 | $ | 0.1000 | $ | 0.1000 | $ | 0.1000 | $ | — | $ | — | ||||||||||||
05/24/2011 | 05/20/2011 | 06/01/2011 | 0.1000 | 0.1000 | 0.1000 | — | — | |||||||||||||||||
08/24/2011 | 08/22/2011 | 09/01/2011 | 0.1000 | 0.1000 | 0.1000 | — | — | |||||||||||||||||
11/22/2011 | 11/18/2011 | 11/30/2011 | 0.1100 | 0.1100 | 0.1100 | — | — | |||||||||||||||||
Total 2011 Distributions | $ | 0.4100 | $ | 0.4100 | $ | 0.4100 | $ | — | $ | — |
|
Property and Equipment | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Natural gas pipeline | $ | 5,215,424 | $ | 5,215,424 | $ | 5,215,424 | ||||||
Vehicles and trailers | 125,117 | 110,782 | 110,782 | |||||||||
Computers | 15,627 | 14,018 | 14,440 | |||||||||
Gross property and equipment | 5,356,168 | 5,340,224 | 5,340,646 | |||||||||
Less: accumulated depreciation | (2,037,685 | ) | (1,751,202 | ) | (1,774,616 | ) | ||||||
Net property and equipment | $ | 3,318,483 | $ | 3,589,022 | $ | 3,566,030 |
|
December 31, 2013 | ||||||||||||||||
December 31, 2013 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Trading securities | $ | — | $ | — | $ | — | $ | — | ||||||||
Other equity securities | 23,304,321 | — | — | 23,304,321 | ||||||||||||
Total Assets | $ | 23,304,321 | $ | — | $ | — | $ | 23,304,321 |
November 30, 2012 | ||||||||||||||||
November 30, 2012 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Trading securities | $ | 55,219,411 | $ | 27,480,191 | $ | 27,739,220 | $ | — | ||||||||
Other equity securities | 19,866,621 | — | — | 19,866,621 | ||||||||||||
Total Assets | $ | 75,086,032 | $ | 27,480,191 | $ | 27,739,220 | $ | 19,866,621 |
December 31, 2012 | ||||||||||||||||
December 31, 2012 | Fair Value | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Trading securities | $ | 4,318,398 | $ | 4,318,398 | $ | — | $ | — | ||||||||
Other equity securities | 19,707,126 | — | — | 19,707,126 | ||||||||||||
Total Assets | $ | 24,025,524 | $ | 4,318,398 | $ | — | $ | 19,707,126 |
For the Years Ended | For the One-Month Transition Period Ended | ||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||
Fair value beginning balance | $ | 19,707,126 | $ | 41,856,730 | $ | 19,866,621 | |||||
Total realized and unrealized gains (losses) included in net income | 5,292,890 | 16,190,428 | (159,495 | ) | |||||||
Sales | — | (35,919,672 | ) | — | |||||||
Return of capital adjustments impacting cost basis of securities | (1,695,695 | ) | (2,260,865 | ) | — | ||||||
Fair value ending balance | $ | 23,304,321 | $ | 19,866,621 | $ | 19,707,126 | |||||
Changes in unrealized gains, included in net income, relating to securities still held (1) | $ | 5,292,890 | $ | 5,018,152 | $ | (159,495 | ) |
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% |
November 30, 2012 | ||||||||||||||
Unobservable Inputs | Range | Weighted Average | ||||||||||||
Assets at Fair Value | Fair Value | Valuation Technique | Low | High | ||||||||||
Other equity securities, at fair value | $ | 19,866,621 | Public company historical EBITDA analysis | Historical EBITDA Valuation Multiples | 9.4x | 10.4x | 9.95x | |||||||
Public company projected EBITDA analysis | Projected EBITDA Valuation Multiples | 8.1x | 9.8x | 8.95x | ||||||||||
Public company yield analysis | Distributable Cash Flow Yield | 8.11% | 9.11% | 8.61% | ||||||||||
M&A company analysis | EV/LTM 2012 EBITDA | 9.3x | 9.9x | 9.6x | ||||||||||
Discounted cash flow | Weighted Average Cost of Capital | 9.5% | 13.0% | 11.25% |
December 31, 2012 | ||||||||||||||
Unobservable Inputs | Range | Weighted Average | ||||||||||||
Assets at Fair Value | Fair Value | Valuation Technique | Low | High | ||||||||||
Other equity securities, at fair value | $ | 19,707,126 | Public company historical EBITDA analysis | Historical EBITDA Valuation Multiples | 9.5x | 11.6x | 10.6x | |||||||
Public company projected EBITDA analysis | Projected EBITDA Valuation Multiples | 8.8x | 10.1x | 9.5x | ||||||||||
M&A company analysis | EV/LTM 2012 EBITDA | 8.9x | 10.3x | 9.6x | ||||||||||
Discounted cash flow | Weighted Average Cost of Capital | 9.5% | 13.0% | 11.3% |
Carrying and Fair Value Amounts | ||||||||||||||||||||||||||
Level within fair value hierarchy | December 31, 2013 | November 30, 2012 | December 31, 2012 | |||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 17,963,266 | $ | 17,963,266 | $ | 14,333,456 | $ | 14,333,456 | $ | 17,680,783 | $ | 17,680,783 | |||||||||||||
Escrow receivable | Level 2 | $ | — | $ | — | $ | 698,729 | $ | 698,729 | $ | 698,729 | $ | 698,729 | |||||||||||||
Financial Liabilities: | ||||||||||||||||||||||||||
Long-term debt | Level 2 | $ | 70,000,000 | $ | 70,000,000 | $ | — | $ | — | $ | 70,000,000 | $ | 70,000,000 | |||||||||||||
Line of credit | Level 1 | $ | 81,935 | $ | 81,935 | $ | 120,000 | $ | 120,000 | $ | — | $ | — |
Revenues | $ | 127,356,000 | Current assets | $ | 36,726,000 | |||||
Operating expenses | $ | 66,167,000 | Noncurrent assets | $ | 417,998,000 | |||||
Net income | $ | 33,360,000 | Current liabilities | $ | 28,285,000 | |||||
Noncurrent liabilities | $ | 191,405,000 | ||||||||
Partner's equity | $ | 235,034,000 |
|
Intangible Lease Asset | ||||||||||||
December 31, 2013 | November 30, 2012 | December 31, 2012 | ||||||||||
Intangible lease asset | $ | 1,094,771 | $ | 1,094,771 | $ | 1,094,771 | ||||||
Accumulated amortization | (729,847 | ) | (413,580 | ) | (437,908 | ) | ||||||
Net intangible lease asset | $ | 364,924 | $ | 681,191 | $ | 656,863 |
Remaining Estimated Amortization On Intangibles | ||||
Year ending December 31, | Amount | |||
2014 | 291,939 | |||
2015 | 72,985 | |||
Total | $ | 364,924 |
|
Effect of Derivative Financial Instruments on Income Statement | ||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Net Income (Effective Portion) | Amount of Gain (Loss) Reclassified from AOCI on Derivatives (Effective Portion) Recognized in Net Income * | Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion, Amounts Excluded from Effectiveness Testing) | |||||||||||||||||||||||||
For the years ended: | December 31, 2013 | November 30, 2012 | December 31, 2013 | November 30, 2012 | December 31, 2013 | November 30, 2012 | ||||||||||||||||||||||||
Interest Rate Swaps | $ | 741,344 | $ | — | Interest Expense | $ | (217,821 | ) | $ | — | Interest Expense | $ | 5,969 | $ | — | |||||||||||||||
For the one-month transition period ended: | December 31, 2012 | December 31, 2012 | December 31, 2012 | |||||||||||||||||||||||||||
Interest Rate Swaps | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivative * | ||||||||||||||||||||||||||||
For the Years Ended | For the One-Month transition Period Ended December 31, 2012 | |||||||||||||||||||||||||||||
December 31, 2013 | November 30, 2012 | |||||||||||||||||||||||||||||
Interest Rate Swaps | Interest Expense | $ | (75,200 | ) | $ | — | $ | (316,756 | ) | |||||||||||||||||||||
* 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 |
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, 2013 | |||||||||||||||
Hedged derivative asset | Assets | $ | — | $ | 680,968 | $ | — | ||||||||
Hedged derivative liability | Liabilities | $ | — | $ | — | $ | — | ||||||||
December 31, 2012 | |||||||||||||||
Prepaid expenses and other assets | Assets | $ | — | $ | — | $ | — | ||||||||
Accounts payable and other accrued liabilities | Liabilities | $ | — | $ | 316,756 | $ | — | ||||||||
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% |
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, 2013 | $ | 680,968 | $ | — | $ | 680,968 | $ | — | $ | — | $ | 680,968 | ||||||||||||
Offsetting Derivative Liabilities as of December 31, 2012 | $ | 316,756 | $ | — | $ | 316,756 | $ | — | $ | — | $ | 316,756 |
|
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, net of expense reimbursements | 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 | ||||||||||||
Income tax 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 | $0.00 | $ | 0.02 | $ | 0.06 |
For the Fiscal Quarters Ended | ||||||||||||||||
February 28, 2012 | May 31, 2012 | August 31, 2012 | November 30, 2012 | |||||||||||||
Lease income | $ | 638,244 | $ | 638,244 | $ | 638,244 | $ | 638,243 | ||||||||
Sales revenue | 2,437,310 | 1,439,958 | 1,927,626 | 2,216,128 | ||||||||||||
Total revenue | 3,075,554 | 2,078,202 | 2,565,870 | 2,854,371 | ||||||||||||
Cost of sales | 2,004,672 | 1,031,114 | 1,381,161 | 1,661,155 | ||||||||||||
Management fees, net of expense reimbursements | 247,381 | 254,965 | 298,051 | 246,399 | ||||||||||||
All other expenses | 599,865 | 892,759 | 1,082,911 | 1,117,268 | ||||||||||||
Total expenses | 2,851,918 | 2,178,838 | 2,762,123 | 3,024,822 | ||||||||||||
Income (loss) from operations, before income taxes | 223,636 | (100,636 | ) | (196,253 | ) | (170,451 | ) | |||||||||
Realized and unrealized gain (loss) on securities transactions, before income taxes | 8,931,466 | 3,237,325 | 8,492,502 | (479,416 | ) | |||||||||||
Distributions and income from investments, net | 85,262 | 55,462 | (502,176 | ) | 82,057 | |||||||||||
Interest Expense | (27,409 | ) | (25,229 | ) | (16,780 | ) | (11,705 | ) | ||||||||
Total other income (loss) and expense, net, before income taxes | 8,989,319 | 3,267,558 | 7,973,546 | (409,064 | ) | |||||||||||
Income (loss) before income taxes | 9,212,955 | 3,166,922 | 7,777,293 | (579,515 | ) | |||||||||||
Current and deferred tax expense, net | (3,465,914 | ) | (1,190,162 | ) | (2,788,785 | ) | 215,927 | |||||||||
Net income | $ | 5,747,041 | $ | 1,976,760 | $ | 4,988,508 | $ | (363,588 | ) | |||||||
Basic and diluted earnings (loss) per share | $ | 0.63 | $ | 0.21 | $ | 0.54 | $ | (0.04 | ) |
|
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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