CorEnergy to Acquire MoGas Pipeline for $125 Million

CorEnergy today announced that it has entered into a definitive agreement to acquire the ownership and operations of the MoGas Pipeline System for $125 million in cash (the “Acquisition”). This 263-mile pipeline is a critical supplier of natural gas in and around the St. Louis region and to small municipalities throughout central Missouri.

CorEnergy intends to finance the acquisition cost with a combination of borrowings under its credit facility and with proceeds of our simultaneously announced public offering of common stock.

The key characteristics of the MoGas Pipeline System include:

•     Diversification towards a new segment of the energy value chain, with exposure to a long-haul natural gas pipeline serving end-user markets
•     Key interconnect receipt points on three natural gas transmission pipelines
•     Steady revenue stream backed by contracts with long-tenured, creditworthy customers
•     Stable history of both firm and interruptible contracted volumes
•     Pipeline assets are REIT qualifying under proposed IRS regulations

“We are pleased to add an interstate pipeline to our diversified portfolio of infrastructure assets used by utilities, storage terminal operators, and natural gas producers,” said David Schulte, Chief Executive Officer of CorEnergy. “Our Board of Directors has confirmed its intent to increase the dividend from $0.130 to $0.135 for the quarter ended March 31, 2015 (or $0.54 cents per share annualized) based upon management’s expectation that the increase is sustainable.”