CorEnergy Infrastructure Trust Inc. said on May 25 it’s entered into a definitive agreement to sell its MoGas and Omega pipeline systems that serve Missouri and Illinois to Spire Inc. for approximately $175 million in cash, according to a press release. (Source: Shutterstock.com)
CorEnergy Infrastructure Trust Inc. said on May 25 it’s entered into a definitive agreement to sell its MoGas and Omega pipeline systems that serve Missouri and Illinois to Spire Inc. for approximately $175 million in cash, according to a press release.
The transaction, which is subject to final working capital adjustments, is expected to close in third-quarter 2023 and is subject to anti-trust clearance and customary closing conditions. CorEnergy estimated that net proceeds, after taxes and transaction-related costs, will total $165 million.
The proceeds will be used to repay all CorEnergy bank debt at closing — approximately $100 million.
“The sale of our MoGas and Omega systems enables us to significantly de-leverage our balance sheet and strengthen our overall capital structure,” said Dave Schulte, CorEnergy chairman and CEO. “This is one of several 2023 initiatives we are undertaking to improve our balance sheet and operating results, including proposed tariff increases and corporate cost reductions.”
The company said it plans to provide an updated 2023 outlook, including opportunities within its California energy transition and other business initiatives after the transaction closes.
Evercore acted as the company’s financial adviser and K&L Gates served as legal counsel.
CorEnergy is a real estate investment trust that owns and operates or leases regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights-of-way.
Recommended Reading
USD Completes Final Asset Sale of Hardisty Terminal
2025-04-13 - USD Partners was obligated to sell the Hardisty Terminal, in Alberta, Canada, after entering a forbearance agreement with its lenders on June 21 2024.
Phillips 66’s NGL Focus, Midstream Acquisitions Pay Off in 2024
2025-02-04 - Phillips 66 reported record volumes for 2024 as it advances a wellhead-to-market strategy within its midstream business.
Dividends Declared Weeks of April 7, 14
2025-04-18 - First-quarter 2025 earnings season is underway. Here is a compilation of dividends declared in the last two weeks from select upstream, midstream and service and supply companies.
Pinnacle Midstream Execs Form Energy Spectrum-Backed Renegade
2025-02-03 - Renegade Infrastructure, led by Permian-centric Pinnacle Midstream developers Drew Ward and Jason Tanous, have received a capital commitment from Energy Spectrum Partners.
Argent LNG, Baker Hughes Sign Agreement for Louisiana Project
2025-02-03 - Baker Hughes will provide infrastructure for Argent LNG’s 24 mtpa Louisiana project, which is slated to start construction in 2026.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.