Recebi algumas respostas do RI do CORR, compartilho aqui com a comunidade:
1. What is the duration of the concession agreements you have with electric and other companies?
Answer: I am not sure if I understand what you mean by “concession agreements”, but we target triple-net lease agreements with our tenants between 10 and 15 years, with opportunities for renewal after that. Please let me know if this does not answer your question!
2. How is the percentage of use of the infrastructure material? Is there a high variation in the vacancy rate?
Answer: We have triple-net operating leases for our Grand Isle Gathering System and our Pinedale Liquids Gathering System. The tenants on these systems have rights to utilize the full capacity of the assets either themselves, or through contracts with third parties which they make themselves. They are required to make the minimum rent payments, on a monthly basis, regardless of utilization. For utilization above a minimum threshold, CORR received additional participating rents. Only Pinedale LGS is currently generating participating rents.
- We operate the Omega Pipeline, which has a 10-year contract with the Department of Defense, as well as the MoGas Pipeline which has a 13-year contract with Laclede Gas, a subsidiary of Spire, for a minimum level of volumes. The remaining capacity is utilized by Ameren and other smaller companies and municipalities.
- We do not disclose the utilization of any of our assets, as these are generally covered by confidentiality agreements with our tenants.
3. Is CorEnergy business cyclical?
Answer: Our revenue stream is largely driven by long-term contracts (10-15 years) which are required to be paid regardless of use of the assets. This protects us from the cyclicality or changes in oil and natural gas prices.
4. What strategy do we have to restore depreciation of infrastructure material?
Answer: The Pinedale LGS and Grand Isle Gathering System are triple-net leases, meaning the tenant is required to pay for the insurance, taxes and maintenance of the system. They are required to maintain the assets to levels set in the lease and CORR has the right to visit our assets at least once a year to verify compliance. For our operated assets (Omega and MoGas) we use our team and contractors to ensure the assets are well maintained and meet safety and efficiency standards.
- From a financial standpoint, we account for deprecation of our assets which are tied to depleting reserves (the Pinedale LGS and the Grand Isle Gathering System) by retaining a portion of revenues in order to redeploy into new asset investments or to pay down debt. This provides us confidence in our ability to maintain a long-term, stable cash dividend for our investors.
5. How does CorEnergy intend to generate value and increase Funds from Operations in the long term?
Answer: We expect long-term growth of revenues of 1-3%, annually from existing contracts through inflation-based escalators and participating rents. Additionally, we are actively seeking assets to acquire in order to grow our revenues and earnings.
Resposta recebida em 20/06/2019
