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CorEnergy Completed Acquisition of Liquids Gatheri

Post n°166 pubblicato il 23 Dicembre 2012 da crweselect
 

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corr CorEnergy Infrastructure Trust, Inc. (NYSE: CORR)

CORR (“CorEnergy”) previously reported that it has closed its previously announced acquisition of a Liquids Gathering System (“LGS”) from Ultra Petroleum Corp. (NYSE: UPL). The Liquids Gathering System will continue to be operated by UPL under a long-term triple net lease. Located in the Pinedale field in Wyoming, the Liquids Gathering System is a vital component of natural gas production in one of the top five natural gas fields in the U.S.

corrchart

CORR (“CorEnergy”) paid $205 million in cash and approximately $24 million in certain other equity securities for the purchase of the Liquids Gathering System from Ultra Petroleum Corp.. The cash portion of the acquisition was funded with the net proceeds of CORR (“CorEnergy”) $78 million common stock offering, approximately $26 million from the sale of CORR (“CorEnergy”) publicly-traded master limited partnership equity securities, approximately $5 million of cash from CORR (“CorEnergy”) balance sheet, a $30 million concurrent co-investment from Prudential Capital Group and $70 million in debt financing.

As a result of the transaction, CORR (“CorEnergy”) ratio of total debt to total assets is approximately 25 percent. CORR (“CorEnergy”) expects to maintain a debt to asset ratio of between 25 and 50 percent.

The Liquids Gathering System now accounts for approximately 81 percent of CORR (“CorEnergy”) total assets on a pro forma basis as of August 31, 2012 and the Liquids Gathering System lease payments account for approximately 66 percent of total revenue on a pro forma basis for the nine months ended August 31, 2012.

CorEnergy Infrastructure Trust, Inc. (“CorEnergy”) (NYSE: CORR ), acquires midstream and downstream U.S. energy infrastructure assets and concurrently enters into long-term triple net leases with energy companies. CorEnergy intends to acquire infrastructure assets that qualify as real property for REIT purposes. The Company’s principal objective is to provide stockholders with an attractive risk-adjusted total return, with an emphasis on distributions and distribution growth. Formerly Tortoise Capital Resources Corp., CorEnergy previously traded under the ticker TTO. CorEnergy is managed by Corridor InfraTrust Management, LLC. Corridor is an affiliate of Tortoise Capital Advisors, L.L.C., a registered investment adviser with over $9.4 billion of assets under management in the U.S. energy infrastructure sector as of November 30, 2012. For more information, please visit www.corridortrust.com .

In my opinion this is a stock to watch!

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http://crweselect.com/32260/stock-alerts/corenergy-completed-acquisition-of-liquids-gathering-system-from-ultra-petroleum-corr/

 
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