KANSAS CITY, Mo. - CorEnergy (OTC:CORRQ) Infrastructure Trust, Inc., a real estate investment trust specializing in crude oil pipelines, announced its emergence from Chapter 11 bankruptcy on Wednesday, June 12, 2024. The company has successfully restructured, significantly reducing its debt and simplifying its capital structure to better align with market conditions and its future goals.
According to CEO Robert Waldron, the restructuring, along with the resolution of a rate case in San Pablo Bay, positions the company to achieve positive cash flow starting in 2025. Waldron expressed confidence in CorEnergy's ability to return its crude oil business to profitability and to seize opportunities related to the energy transition.
As part of the restructuring, previous shares of CorEnergy's common and preferred equity have been canceled, with no need for shareholder action. The company also indicated that there will be no further trading of these shares. Plans for listing the new shares on an over-the-counter market are underway, although no specific timeline has been provided.
The reorganization has also led to the appointment of five new members to CorEnergy's board of directors, representing the interests of the new equity holders.
This news is based on a press release statement from CorEnergy Infrastructure Trust, Inc.
InvestingPro Insights
Following CorEnergy Infrastructure Trust, Inc.'s emergence from Chapter 11 bankruptcy, the company's financial outlook suggests a path to recovery. InvestingPro data indicates a market capitalization of a modest $0.25M, reflecting the company's current valuation post-restructuring. Despite the challenges faced in the past, CorEnergy's revenue for the last twelve months as of Q4 2023 stood at $131.57M, with a gross profit margin of 33.45%, showing the company's ability to maintain a solid profit from its operations.
InvestingPro Tips highlight that CorEnergy's stock is expected to experience net income growth this year, which aligns with CEO Robert Waldron's projections of achieving positive cash flow starting in 2025. However, potential investors should be aware of the high price volatility associated with the stock, as it has shown significant price fluctuations over the past months and years. Notably, the stock has not been profitable over the last twelve months, and it has not paid dividends to shareholders, emphasizing the speculative nature of the investment at this stage.
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