CorEnergy completes acquisition of LGS from Ultra Petroleum
Friday, Dec 21, 2012
CorEnergy Infrastructure Trust, Inc. (“CorEnergy”) (NYSE: CORR) today announced that it has closed its previously announced acquisition of a Liquids Gathering System (“LGS”) from Ultra Petroleum Corp. (NYSE: UPL). The LGS will continue to be operated by UPL under a long-term triple net lease. Located in the Pinedale field in Wyoming, the LGS is a vital component of natural gas production in one of the top five natural gas fields in the U.S.
“We are pleased to have completed our largest acquisition of REIT-qualifying assets to-date”
“We are pleased to have completed our largest acquisition of REIT-qualifying assets to-date,” said Chief Executive Officer, David Schulte. “This is a mission-critical asset, with a high-quality tenant, and it represents a cornerstone for our energy infrastructure REIT strategy. The acquisition is accretive to our distribution and our Board of Directors has indicated that it intends to approve an increase in our quarterly distribution from $0.11 to $0.125 for the first full quarter following the acquisition. The REIT structure provides our investors direct access to U.S. energy infrastructure in an attractive vehicle with transparent cash flow.”
Source: Business Wire
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