David J. Schulte, President and Chief Executive Officer of CorEnergy Infrastructure Trust (NYSE: CORR), presented today at EnerCom’s The Oil & Gas Conference® 20.
CorEnergy is a real estate investment trust (REIT) that owns essential midstream and downstream energy assets, such as pipelines, storage terminals, and transmission and distribution assets. The trust seeks long-term contracted revenue from operators of its assets, primarily under triple net participating leases.
In its second quarter 2015 earnings, CorEnergy reported Adjusted Funds from Operations of $0.14 per basic share and announced intention to increase the common stock dividend by 11.1% to $0.15 per share quarterly ($0.60 annualized). CorEnergy also closed on the acquisition of the Grand Isle Gathering System from Energy XXI for total consideration of $259 million.
During the company’s breakout session, management was asked the following questions:
- I am just curious about why you acquired GIGS from Energy XXI and what your expectations are for the 20-year lease?
- You mentioned leverage in your presentation, can you give me more color on the debt and equity position trend? And can you talk about your specific debt/asset position?
- Who pays to abandon the liability you just mentioned? And what’s the PV number?
- In the Portland case, how do you handle expanding assets while managing your financing lease?
- If you are going to buy XYZ asset, you have to do due diligence. Do your bankers get involved and give you some restrictions?
- What’s your strategic plan for the next three-month period?
- Can you talk about the spread of your cost of debt and return on equity?
- What kind of assets are you interested in and what kind of opportunities are you seeing?
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