CORR - Earnings call transcript Q4 2021 | CorEnergy Infrastructure Trust, Inc.

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Operator

Hello and welcome to CorEnergy's Conference Call to discuss the Fourth Quarter and Full Year 2021 Results. At this time, all participants have been placed on listen only mode and we will open the floor for questions and comments after the presentation. [Operator Instructions] I would now like to turn the call over to Matt Kreps Investor Relations for CorEnergy. Please go ahead.

Matt Kreps

Thank you, Kate and thank you everyone for joining today's CorEnergy Infrastructure Trust conference call. Dave John are Robert COO; today CFO. Waldron, me Schulte, Grier, CEO; and With we press published fourth morning, this Earlier a full results quarter release year for XXXX. and the announcing

afternoon. file Form to expect We XX-K this our

Dave in website. during update Relations' review documents our GAAP Please the related that, numbers, Investor all encourage subsequent reporting. section which the you -- complete These the on we non-GAAP call Schulte. this to like protection statements You may to Important are with can also applicable of of would a this of our presentation in GAAP actual call corenergy.reit, purely section forward-looking I like results forward-looking be a those forward-looking course end. our risk to webcast disclosures, go historical of reconciliations. couple at remind laws. from cause to made the factors, and of to our reconciled the part make the metrics, that website that are available the in over will to the filings the are live certain SEC. metrics We filings in be I not statements results with this statements and materially reference forward-looking company discussed call's not replay do non-GAAP statements. available of to factors with securities those typically will Investors of access under during our call the We the And turn subject within hours now that as everyone could of Also Harbor differ ahead. Safe the would are

Dave Schulte

overcame to industry-leading enables letter future. the owner-operator about for talk ruling we're pandemic-related model with positioned We're a our an us lease-centric our the now believe recognize In activities everyone. REIT challenges rents as CorEnergy our transitioned to XXXX, good certain happy morning morning Good under private XXXX of within from we our and outlook. and results this We you operating to that business structure.

if We the followed necessary. of our performers, simplification shares also that has stockholder to these net million. Omega benefits strengthened our acting Crimson of our the demonstrated your while a as business has achieved includes we've management future steady approval. a that of quarter platform. reorganized great California our the into reduction management-owned volume alignment fees This ability our of good team operations, and established revenue were was costs, coverage rate takeaway confidence believe of it implement the indication position, common in with subordinated while management shock common an was dividend actions these with common which Fourth in our The when all $XX.X needed. holders steps capital performance and be XXXX. absorber the confidence greater should of increases to provide We in stockholders. already post-COVID a This structure our and also MoGas even management our baseline is coverage the benefit and for of dividend going both holders of stock of reduced

the stable our cover tariff rate primarily a model by This model mitigated based our volume to generate ability cost-of-service dividends where any a opportunities providing modest while long-term supports time now assets growth and revenue for Our long-term are CorEnergy on over of ahead. declines increases. for impact secures

into to higher crude Therefore oil detail. Lower is no In California, new more that drilling issue the impact to island far XX are legal slowed any versus existing of the by hearing ruled other permits we're from begin pipelines on optimistic every next California issued the is producers. it The ruled state. to County in in And in at October, a permits it in an by consume occur and despite EIR a though signal state, Court, must thereafter. significantly. to not county comes which the states when at environmental countries, interstate energy prices is that percentage ships scheduled are a oil court will foreign may carry to Californians oil issued the state challenge brought a until issuance Last being that there with on be the no a our Kern high sends since April. Looking challenge cost its that has or by permits carbon little from on coming there that barrel not the EIR new under be is report, a requiring pipelines significant produced soon that month, guarantees, rail

the year ahead, should was an offshore to permitting owned in other break Additionally, historical in pipeline system underwater place return than higher due to do for flows But, of down recently resolved. third in We to increase invest production, cash not the resulting production curtailed years, they've have desire on party producers programs pay carbon-mitigation issues volumes a drilling, the past decline in or including expressed debt of the see that be couple focused by opportunities free using energy late transition company. last of their rates. their and

from in Phillips as be possible no those also annual by represent be of will will and into crude the to which to at will crude different month. $XX,XXX boost back And process volume. fall. updates were volumes the other are about expected flows, those previously to per to will and but refineries million to a encouraged provide continue that longer XXXX convert need by oil. Crimson such XX for renewable will feeding diesel routes. Those We Refinery accounted We're system among produced path barrels a Rodeo sizable our that pipelines resources it the quarterly to cash production reported Prior our X.X expect break, approximately online

goals systems continue that provider efforts and With base. assets senior the gas and is introduce customers assets reflective our the the financials increased it and volumes to to The Turning new steadily. consideration report. are Robert? and these asset Board predictability to address that, of Directors, leadership supported our long-term delivering the consistency We're to area. which supporting and natural Midwest. of turn That I'll St. in our Spire, across for our and in our stewardship ESG of stakeholders. customer over Robert in performing the and exemplary our of was by of a MoGas capital Omega of Louis, results demonstrate report critical

Robert Waldron

Dave. Thanks,

stock resulting adjusted still revenue time, net income adjusted X.X times CAD months $XXX,XXX; a $XX.X cash million; in of three X.X coverage. No maintenance Class million, B ended a million; for XX, $X.XX and for EBITDA December the of per not debt our non-recurring the or we Over For XXXX, providing distribution of company's all and X.XX dividend and out. adjusted approximately and liquidity the CAD $XX The as included meeting common dividends We for of common gains to required common share revolver. $X of adjusted million $XX after and available quarter shares. preferred a times. measurement Class stock. coverage of amortization had B $XX.X of the with fourth quarter that, Adjusted million, finished was for a cancel dividend of we the million adjusting obligations was gain. $X.X measurement declared common result undrawn on After expect losses cash capital coverage during on $XX declared Board including on the dividend million ratio

maintained B into Class dividend, Class paying the common confident begin We foreseeable will the only future. the that we can are dividend be once B

the management, a reminder, dividend stockholders. B acts a As stability owned common, the Class by in buffer external our for as providing

potential for return our investors. for of capital, Our XXXX benefit dividend a characterization was

the allow of believe continue to million anticipate a and our our XXXX earn portion characterization Now be in page some be XX I on maintenance dividend believe EBITDA, sheet. pay achieve We spend. this on direct common financial our when $XX of information should table, timing will $XX further million turning of be dividend to we quarterly together impact maintenance we the located dividend considered due $X outlook, our to of Based our in of to to into on forward-looking XXXX XXXX. We GAAP insight in There to XXXX table with everyone today. capital. also to that balance the coverage reflected provides variability to later XX-K in the filed This prospective non-controlling return our capital. $X outlook. adjusted with to can us million interest will want million capitalization

profile, in increasingly want is I environment. which address to our today's Lastly, ESG important

for stockholders are serves posting to plan improvement. as an on investors for initial view which website, our baseline and We continued our a ESG

baseline in this to will ahead. working to ways weeks be formulate improve months on We and the

believed Furthermore, points CorEnergy ESG positive engaged few in most As the was our always our of the just a good that our years. has in S highlight the analysis. gas improved the of to business strong regulated XXXX. markets oil ESG company past have manager in aspects the which the and internalization operating the further industry been corporate XX E with as of in in and for in attributes a governance, practice world, I'll one assets speak in

truck. such a we barge pipeline far company, as volumes, as not, large options more if carbon-efficient than transportation of, transporting ship, First, of most the one or means are other rail,

the of transporting a MoGas infrastructure. pipeline, source transition, as Second, gas plays a energy burning an available integral is fuel part that natural using existing readily cleaner

has oil-focused, producers the what we the energy environment are California world. be California and and emitters the a lowest operating in framework carbon Third, California operations, while safety world. the rigorous regulatory our cleanest in might are in believe among

a California associated who analysis average in-state connecting lowest the in-state virtue turn fraction the in-state one local We or In covering production develop industry. publicly highly product CRC, continue of we the and stockholders transportation just analysts system, the By the before program. of to fact, minimize time, have their transportation portion on of refining, in emissions markets, efficient we chain. welcome as report, closing emitter from being possibly for with supply value a initial their At is of in the feedback producers we disclosed any in largest questions institutional may take our this call. to the you will the carbon our

necessary needs they Thank have follow-up today's or addressed make our arrangements. additional team you. out Relations to Investor and will please not you on reach questions If call,

Operator

floor at Ladies and first question is Stifel. Instructions] coming today open from Selman Our questions. for is now the you. gentlemen, [Operator Thank Akyol

Your live. is line

You may begin.

Selman Akyol

terms I you're of starting Good those you. of guess, to transport. little barrels? about, maybe Can seeing Thank some in what a thoughts being those bit able the out to talk morning. off and there XX and your Phillips first on looking secure you barrels actually just

Dave Schulte

think has Grier the that best that state I'll let so to operating able years perspective answer I on John the you in are to respond? He's been and John, for many Selman. question.

John Grier

up -- is thank Santa Sure. Yes. preprocess refinery plans Selman, you. in for in bit of Maria, up the to It's a refinery little got in their which that's the a in first Rodeo PXX their shut has take day Area. both combination Bay -- those XX,XXX of And And to go XX,XXX order those a they day -- on refineries. to those in barrels, has that barrels barrels the a somewhere. of to

can't for being, there those For a That's now years barrels Avon exactly we say was the Marathon go, the but approaching shut-in where two refinery. certain ago. of time

of have needs of reasonable our that's on lot We barrels Bay so, the but one. expectation somehow. not be up Area on that made a a that certainty will that north. up shortage those That's And there's pipeline, our go there's in a to part believe, barrels there's to

Selman Akyol

month. Got about looking barrels just just situation, I maybe if you permitting talking about talk Can the little maybe guess for a of sort to bit more it. how flow bit quickly whole then, I next And guess, that could successful again? start ruling a little

John Grier

a on I'll the And but that's and we're workovers well in steamfloods the is to Selman, for, that I would state. a an County. if will in permit as forward. that producers. ruling well number that projects the And for and desire are are permit increase believe some and reports move not are a the immediately. generally of immediate -- and technicality include things that to there the But that, Kern again, on kind waterfloods relief producers. for -- like optimistic invest it increasing certainly in that those That's there's of won't happen another of a one is there's done go while for willingness requests for today, We of in all are in there There say headwinds producers much as environmental say production. impact favor it's that that legal and production very which reason like requests good drilling, California and

that's I say think I I a And immediate. there's so, that can't think benefit, eventually but

Selman Akyol

the little Can maybe opportunities Understood and there? new maybe what there. and directed just bit me, out for color Dave. you what about business and Last you're seeing appreciate more towards one and you're talk a chasing

Dave Schulte

still and that We best our commercial on then might secondarily that underway the is of going activity Selman. believe acquisitions got existing footprint; our to be that diversify within developments platform. or projects Sure, investment those areas. return are in both We've add-on

Now where do we is pleased a think us. capital, And we're on we to to we're that have the with be limited going have for very about going level those XXXX both to I activity go. of good fronts. But with be choosy year

Selman Akyol

very Thanks Okay. much.

John Grier

John is This Selman, Grier again. if can I add.

in And announcements that. discussions counterparties that carbon And currently I'll a call this assets on and working sort skills business year have to making been have people number with our we're rights-of-way expand later include to of, specifically investments. efforts and company but of we in to we're at energy for have hope it, some uses uses sequestration. We on we new use looking and been in our we have those our

Selman Akyol

Great. Thank you.

Operator

in Instructions] Schulte I remarks. the queue like have you. floor over David Thank for closing now questions [Operator to any We this turn further no to at back would time.

Dave Schulte

best of Becky Executive company the closing you'd her and today. on me. and tireless Thanks arrange Before a us our IR professional our Please do. like thank investor with I call, move want the rest behalf one-on-one upcoming contact Directors events a our who the CorEnergy Have to next chapter. Vice the build in teams April. rulings Board team to external private of meet everyone internal letter enable conference On in joining will Becky wish operate develop efforts colleagues, to her leading day. do was to her recognize She XXXX platform of us I with and our company your to or President, our responsible to Becky landmark want for founder in from direct for for been the great as has if that call. of at one we a Sandring of her

Operator

Thank and ladies today's gentlemen. event. does you, This conclude

We thank You wonderful you may disconnect this at time for your a participation. and have day.

CorEnergy Infrastructure Trust (CORR) 14 Mar 222021 Q4 Earnings call transcript