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UNITED STATESSECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 ___________________________________________

FORM 10-Q___________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-33292_________________________________________________________

CORENERGY INFRASTRUCTURE TRUST, INC.______________________________________________________________________(Exactnameofregistrantasspecifiedinitscharter)

Maryland 20-3431375

(Stateorotherjurisdictionofincorporationororganization) (IRSEmployerIdentificationNo.)

1100 Walnut, Ste. 3350Kansas City, MO 64106

(AddressofPrincipalExecutiveOffices) (ZipCode)

(816) 875-3705(Registrant’stelephonenumber,includingareacode)

n/a(Formername,formeraddressandformerfiscalyear,ifchangedsincelastreport)

___________________________________________

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.YesxNoo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitandpostsuchfiles).YesxNoo

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethedefinitionsof“largeacceleratedfiler”,“acceleratedfiler”,and“smallerreportingcompany”inRule12b-2oftheExchangeAct.(Checkone):

Largeacceleratedfiler ¨ Acceleratedfiler x

Non-acceleratedfiler ¨(Donotcheckifasmallerreportingcompany) Smallerreportingcompany ¨

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheAct)Yes¨Nox

AsofJuly31,2016,theregistranthad11,870,869commonsharesoutstanding.

CorEnergy Infrastructure Trust, Inc.FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2016TABLE OF CONTENTS

____________________________________________________________________________________________

GlossaryofDefinedTerms 3Forward-LookingStatements 6PART I FINANCIAL INFORMATION 8 Item1. FinancialStatements(unaudited) 8 ConsolidatedBalanceSheets 8 ConsolidatedStatementsofIncomeandComprehensiveIncome 9 ConsolidatedStatementsofEquity 10 ConsolidatedStatementsofCashFlows 11 NotestoConsolidatedFinancialStatements 13 1. IntroductionandBasisofPresentation 13 2. SignificantAccountingPolicies 14 3. LeasedPropertiesandLeases 18 4. FinancingNotesReceivable 20 5. VariableInterestEntities 20 6. Incometaxes 21 7. PropertyandEquipment 22 8. ManagementAgreement 23 9. FairValue 24 10. CreditFacilities 27 11. ConvertibleDebt 28 12. Stockholders'Equity 29 13. EarningsPerShare 30 14. SubsequentEvents 30 Item2. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 31 Item3. QuantitativeandQualitativeDisclosuresaboutMarketRisk 47 Item4. ControlsandProcedures 48 PART II. OTHER INFORMATION 48 Item1. LegalProceedings 48 Item1A. RiskFactors 49 Item2. UnregisteredSalesofEquitySecuritiesandUseofProceeds 51 Item3. DefaultsUponSeniorSecurities 51 Item4. MineSafetyDisclosures 51 Item5. OtherInformation 51 Item6. Exhibits 51

This report should be read in its entirety. No one section of the report deals with all aspects of the subject matter. It should be read in conjunction with theconsolidatedfinancialstatements,relatednotes,andwiththeManagement'sDiscussion&Analysis("MD&A")includedwithin,aswellasprovidedintheAnnualReportonForm10-K,fortheyearendedDecember31,2015.

Theconsolidatedunauditedfinancialstatementshavebeenpreparedinaccordancewithgenerallyacceptedaccountingprinciplesforinterimfinancialinformation,theinstructionstoForm10-Q,andArticle10ofRegulationS-X.Accordingly,theydonot

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#CORR-2016630X10Q_HTM_S6127F3A6063F78944F8CA0333E47CBEC

includealloftheinformationandnotesrequiredbygenerallyacceptedaccountingprinciplesforcompletefinancialstatements.IntheopinionofManagement,alladjustments(consistingofnormalrecurringaccruals)considerednecessaryforafairpresentationhavebeenincluded.OperatingresultsforthesixmonthsendedJune30, 2016 , are not necessarily indicative of the results that maybeexpectedfor the year endedDecember 31, 2016 . For further information, refer to theconsolidated financial statements and footnotes thereto included in the CorEnergy Infrastructure Trust, Inc. Annual Report on Form 10-K, for the year endedDecember31,2015.

GLOSSARY OF DEFINED TERMS

Certainofthedefinedtermsusedinthisreportaresetforthbelow:

Accretion Expense: theexpenserecognizedwhenadjustingthepresentvalueoftheGIGSAROforthepassageoftime

Administrative Agreement: theAdministrativeAgreementdatedDecember1,2011,asamendedeffectiveAugust7,2012,betweentheCompanyandCorridor

Arc Logistics: ArcLogisticsPartnersLP(NYSE:ARCX)

Arc Terminals: ArcTerminalsHoldingsLLC,anindirectwholly-ownedoperatingsubsidiaryofArcLogistics

ARO: theAssetRetirementObligationliabilitiesassumedwiththeacquisitionofGIGS

ASC: AccountingStandardsCodification

Bbls: standardbarrelcontaining42U.S.gallons

BB Intermediate: BlackBisonIntermediateHoldings,LLC,theholdingcompanyofBlackBisonWaterServices

Black Bison Notes: thefinancingnotesbetweenCorridorBisonandCorEnergyBBWSandBBWS

BBWS: BlackBisonWaterServices,LLC,theborroweroftheBlackBisonfinancingnotes,aswellasalloftheothercollateralsecuringtheBlackBisonLoans

Code: theInternalRevenueCodeof1986,asamended

CorEnergy: CorEnergyInfrastructureTrust,Inc.(NYSE:CORR)

CorEnergy BBWS: CorEnergyBBWS,Inc.,awholly-ownedsubsidiaryofCorEnergy

Convertible Notes: theCompany's7.00%ConvertibleSeniorNotesDue2020

Corridor: CorridorInfraTrustManagement,LLC,theCompany'sexternalmanagerpursuanttotheManagementAgreement

Corridor Bison: CorridorBison,LLCawholly-ownedsubsidiaryofCorEnergy

Corridor MoGas: CorridorMoGas,Inc.,awholly-ownedsubsidiaryofCorEnergyandtheholdingcompanyofMoGasandUnitedPropertySystems

Corridor Private: CorridorPrivateHoldings,Inc.,anindirectwholly-ownedsubsidiaryofCorEnergy

CPI: ConsumerPriceIndex

EIP: the Eastern Interconnect Project, which includes 216 miles of 345-kilovolt transmission lines, towers, easement rights, converters and other grid supportcomponentsthatmoveelectricityacrossNewMexicobetweenAlbuquerqueandClovis

Exchange Act: theSecuritiesExchangeActof1934,asamended

Expedition: collectively,ExpeditionWaterSolutionsColoradoLLC,Expedition#1PowderRiverLLC,Expedition#2PowderRiverLLC,Expedition#3PowderRiverLLCandEWS#5DJBasinLLC

EXXI: EnergyXXILtd(OTCPink:EXXIQ)

EXXI Tenant: EnergyXXIGIGSServices,LLC,awholly-ownedoperatingsubsidiaryofEXXIthatisthetenantunderGrandIsleCorridor'striple-netleaseoftheGrandIsleGatheringSystem

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TableofContents GlossaryofDefinedTerms

GLOSSARY OF DEFINED TERMS ( Continued from previous page )

FASB: FinancialAccountingStandardsBoard

Four Wood Corridor: FourWoodCorridor,LLC,awholly-ownedsubsidiaryofCorEnergy

Four Wood Energy: FourWoodEnergyPartnersLLC,awholly-ownedsubsidiaryofFourWoodCapitalPartnersLLC

Four Wood Notes: thefinancingnotesbetweenFourWoodCorridorandCorridorPrivateandSWD

GAAP: U.S.generallyacceptedaccountingprinciples

GIGS: theGrandIsleGatheringSystem,ownedbyGrandIsleCorridor,LPandtriple-netleasedtoawholly-ownedsubsidiaryofEnergyXXILtd

Grand Isle Corridor: GrandIsleCorridor,LP,anindirectwholly-ownedsubsidiaryoftheCompany

Grand Isle Gathering System: asubseamidstreampipelinegatheringsystemlocatedintheshallowGulfofMexicoshelfandstorageandonshoreprocessingfacilities

Grand Isle Lease Agreement: theJune2015agreementpursuanttowhichtheGrandIsleGatheringSystemassetsaretriple-netleasedtoEXXITenant

Indenture: collectively,thatcertainBaseIndenture,datedJune29,2015,assupplementedbytherelatedFirstSupplementalIndenture,datedasofJune29,2015,betweentheCompanyandComputershareTrustCompany,N.A.,asTrusteefortheConvertibleNotes

Leeds Path West: CorridorLeadsPathWest,Inc.,awholly-ownedsubsidiaryofCorEnergy

Lightfoot: collectively,LightfootCapitalPartners,LPandLightfootCapitalPartnersGPLLC

Management Agreement: theManagementAgreementeffectiveJuly1,2013,asamendedeffectiveJanuary1,2014,betweentheCompanyandCorridor

New Management Agreement: theManagementAgreementeffectiveMay1,2015,betweentheCompanyandCorridor

MMBTu: MillionBritishThermalUnits,ameasurementofnaturalgas

MoGas: MoGasPipelineLLC,anindirectwholly-ownedsubsidiaryofCorEnergy

MoGas Pipeline System: anapproximately263-mileinterstatenaturalgaspipelinesysteminandaroundSt.LouisandextendingintocentralMissouri,ownedandoperatedbyMoGas

MoGas Revolver: a$3millionrevolvinglineofcreditfacilityattheMoGassubsidiarylevelwithRegionsBank

Mowood: Mowood,LLC,anindirectwholly-ownedsubsidiaryofCorEnergyandtheholdingcompanyofOmegaPipelineCompany,LLC

Mowood/Omega Revolver: a$1.5millionrevolvinglineofcreditfacilityattheMowoodsubsidiarylevelwithRegionsBank

NAREIT: NationalAssociationofRealEstateInvestmentTrusts

Omega: OmegaPipelineCompany,LLC,awholly-ownedsubsidiaryofMowood,LLC

Omega Pipeline: Omega'snaturalgasdistributionsysteminsouthcentralMissouri

Pinedale Credit Facility: a$70millionsecuredtermcreditfacility,withtheCompanyandPrudentialascurrentlenders,usedbyPinedaleCorridor,LPtofinanceaportionoftheacquisitionofthePinedaleLGS.SeeNote12,CreditFacilities,foramorein-depthdiscussionofthisagreement.

Pinedale LGS: the Pinedale Liquids Gathering System, a system consisting of approximately 150 miles of pipelines and four above-ground central gathering

facilitieslocatedinthePinedaleAnticlineinWyoming,ownedbyPinedaleLPandtriple-netleasedtoawholly-ownedsubsidiaryofUltraPetroleum

4


GLOSSARY OF DEFINED TERMS ( Continued from previous page )

Pinedale Lease Agreement: theDecember2012agreementpursuanttowhichthePinedaleLGSassetsaretriple-netleasedtoawhollyownedsubsidiaryofUltraPetroleum

Pinedale LP: PinedaleCorridor,LP

Pinedale GP: thegeneralpartnerofPinedaleLP

Portland Lease Agreement: theJanuary2014agreementpursuanttowhichthePortlandTerminalFacilityistriple-netleasedtoArcTerminals,awhollyownedsubsidiaryofArcLogisticsPartnersLP

Portland Terminal Facility: apetroleumproductsterminallocatedinPortland,Oregon

PNM: PublicServiceCompanyofNewMexico,asubsidiaryofPNMResourcesInc.(NYSE:PNM)

PNM Lease Agreement: atriplenetleaseagreementfortheEasternInterconnectProject

Prudential: ThePrudentialInsuranceCompanyofAmerica

QDI: qualifieddividendincome

Regions Revolver: theCompany’s$105millionrevolvinglineofcreditfacilitywithRegionsBank

Regions Credit Facility: theCompany's$45millionTermLoan,togetherwiththeupsized$105millionRegionsRevolverandthe$3millionMoGasRevolverwithRegionsBank

Regions Term Loan: theCompany's$45milliontermloanwithRegionsBankthatispartoftheRegionsCreditFacility

REIT: realestateinvestmenttrust

SEC: SecuritiesandExchangeCommission

SWD: SWDEnterprises,LLC,awholly-ownedsubsidiaryofFourWoodEnergyPartners,LLC

TRS: taxableREITsubsidiary

Ultra Petroleum: UltraPetroleumCorp.(OTCPink:UPLMQ)

Ultra Wyoming: UltraWyomingLGSLLC,anindirectwholly-ownedsubsidiaryofUltraPetroleum

United Property Systems: UnitedPropertySystems,LLC,anindirectwholly-ownedsubsidiaryofCorEnergy,acquiredwiththeMoGastransactioninNovember2014

VIE: VariableInterestEntity

VantaCore: VantaCorePartnersLP

WTI: WestTexasIntermediate,gradeofcrudeoilusedforbenchmarkingprice

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CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTSCertainstatementsincludedorincorporatedbyreferenceinthisQuarterlyReportonForm10-Qmaybedeemed“forward-lookingstatements”withinthemeaningofthefederalsecuritieslaws.Inmanycases,theseforward-lookingstatementsmaybeidentifiedbytheuseofwordssuchas“will,”“may,”“should,”“could,”“believes,”“expects,”“anticipates,”“estimates,”“intends,”“projects,”“goals,”“objectives,”“targets,”“predicts,”“plans,”“seeks,”orsimilarexpressions.

Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, forward-looking statements are notguaranteesoffutureperformanceorresultsandwecangivenoassurancethattheseexpectationswillbeattained.Ouractualresultsmaydiffermateriallyfromthose indicated by these forward-looking statements due to a variety of knownand unknownrisks and uncertainties. Youshould also understand that it is notpossibletopredictoridentifyallsuchfactorsandshouldnotconsiderthefollowinglisttobeacompletestatementofallpotentialrisksanduncertainties.Factorsthatcouldcauseouractualresultstodiffermateriallyfromtheresultscontemplatedbysuchforward-lookingstatementsinclude:

• theabilityofourtenantsandborrowerstomakepaymentsundertheirrespectiveleasesandmortgageloans,ourrelianceoncertainmajortenantsundersingletenantleasesandourabilitytore-leaseproperties;

• changesineconomicandbusinessconditionsintheenergyinfrastructuresectorwhereourinvestmentsareconcentrated,includingthefinancialconditionofourtenantsorborrowersandgeneraleconomicconditionsintheparticularsectorsoftheenergyindustryservedbyeachofourinfrastructureassets;

• theinherentrisksassociatedwithowningrealestate,includingrealestatemarketconditions,governinglawsandregulations,includingpotentialliabilitiesrelatedtoenvironmentalmatters,andtherelativeilliquidityofrealestateinvestments;

• risksassociatedwiththebankruptcyordefaultofanyofourtenantsorborrowers;• theimpactoflawsandgovernmentalregulationsapplicabletocertainofourinfrastructureassets,includingadditionalcostsimposedonourbusinessor

otheradverseimpactsasaresultofanyunfavorablechangesinsuchlawsorregulations;• thelossofanymemberofourmanagementteam;• ourcontinuedabilitytoaccessthedebtandequitymarkets;• ourabilitytosuccessfullyimplementourselectiveacquisitionstrategy;• ourabilitytoobtainsuitabletenantsforourproperties;• ourabilitytorefinanceamountsoutstandingunderourcreditfacilitiesandourconvertiblenotesatmaturityontermsfavorabletous;• changesininterestratesunderourcurrentcreditfacilitiesandunderanyadditionalvariableratedebtarrangementsthatwemayenterintointhefuture;• ourabilitytocomplywithcertaindebtcovenants;• dependencebyusandourtenantsonkeycustomersforsignificantrevenues,andtheriskofdefaultsbyanysuchtenantsorcustomers;• ourorourtenants'abilitytosecureadequateinsuranceandriskofpotentialuninsuredlosses,includingfromnaturaldisasters;• thecontinuedavailabilityofthirdpartypipelines,railroadsorotherfacilitiesinterconnectedwithcertainofourinfrastructureassets;• risksassociatedwithowning,operatingorfinancingpropertiesforwhichthetenants',mortgagors'orouroperationsmaybeimpactedbyextremeweather

patternsandothernaturalphenomena;• ourabilitytosellpropertiesatanattractiveprice;• marketconditionsandrelatedpricevolatilityaffectingourdebtandequitysecurities;• competitiveandregulatorypressuresontherevenuesofourinterstatenaturalgastransmissionbusiness;• changesinfederalorstatetaxrulesorregulationsthatcouldhaveadversetaxconsequences;• declinesinthemarketvalueofourinvestmentsecurities;• ourabilitytomaintaininternalcontrolsandprocessestoensurealltransactionsareaccountedforproperly,allrelevantdisclosuresandfilingsaretimely

madeinaccordancewithallrulesandregulations,andanypotentialfraudorembezzlementisthwartedordetected;• changesinfederalincometaxregulations(andapplicableinterpretationsthereof),orinthecompositionorperformanceofourassets,thatcouldimpact

ourabilitytocontinuetoqualifyasarealestateinvestmenttrustforfederalincometaxpurposes;

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• risksrelatedtopotentialterroristattacks,actsofcyber-terrorism,orsimilardisruptionsthatcoulddisruptaccesstoourinformationtechnologysystemsorresultinothersignificantdamagetoourbusinessandproperties,someofwhichmaynotbecoveredbyinsuranceandallofwhichcouldadverselyimpactdistributionstoourstockholders.

Forward-lookingstatementsspeakonlyasofthedateonwhichtheyaremade.Whilewemayupdatethesestatementsfromtimetotime,wearenotrequiredtodosootherthanpursuanttoapplicablelaws.Forafurtherdiscussionoftheseandotherfactorsthatcouldimpactourfutureresultsandperformance,seePartI,Item1A.,RiskFactorsinourAnnualReportonForm10-KfortheyearendedDecember31,2015,filedwiththeSecuritiesandExchangeCommission(SEC)onMarch14,2016.

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PART I. FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTS

CorEnergy Infrastructure Trust, Inc.CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30, 2016 December 31, 2015Assets

Leasedproperty,netofaccumulateddepreciationof$42,821,737and$33,869,263 $ 500,273,741 $ 509,226,215

Propertyandequipment,netofaccumulateddepreciationof$7,615,837and$5,948,988 118,335,359 119,629,978

Financingnotesandrelatedaccruedinterestreceivable,netofreserveof$4,100,000and$13,784,137 1,500,000 7,675,626

Otherequitysecurities,atfairvalue 8,036,137 8,393,683

Cashandcashequivalents 8,116,117 14,618,740

Accountsandotherreceivables 14,658,133 10,431,240

Deferredcosts,netofaccumulatedamortizationof$1,708,009and$2,717,609 3,685,192 4,187,271

Prepaidexpensesandotherassets 808,011 491,024

Deferredtaxasset 1,977,585 1,606,976

Goodwill 1,718,868 1,718,868

Total Assets $ 659,109,143 $ 677,979,621

Liabilities and Equity

CurrentmaturitiesofTermloan–relatedparty $ 668,556 $ —

CurrentmaturitiesofTermloan 7,890,000 66,132,000

Termloan–relatedparty 9,660,629 —

Termloan,netofdeferreddebtcosts 33,260,436 39,308,842

Lineofcredit 44,000,000 —

7.00%ConvertibleSeniorNotes,netofdiscountanddeferreddebtcosts 110,851,168 111,423,910

Assetretirementobligation 13,197,499 12,839,042

Accountspayableandotheraccruedliabilities 2,540,699 2,317,774

Managementfeespayable 1,699,786 1,763,747

Unearnedrevenue 54,094 —

Total Liabilities $ 223,822,867 $ 233,785,315

Equity SeriesACumulativeRedeemablePreferredStock7.375%,$56,250,000liquidationpreference($2,500pershare,$0.001parvalue),10,000,000authorized;22,500issuedandoutstandingasofJune30,2016,andDecember31,2015 $ 56,250,000 $ 56,250,000Capitalstock,non-convertible,$0.001parvalue;11,869,828and11,939,697sharesissuedandoutstandingatJune30,2016,andDecember31,2015(100,000,000sharesauthorized) 11,870 11,940

Additionalpaid-incapital 352,270,804 361,581,507

Accumulatedothercomprehensiveincome(loss) (17,274) 190,797

Total CorEnergy Equity 408,515,400 418,034,244

Non-controllingInterest 26,770,876 26,160,062

Total Equity 435,286,276 444,194,306

Total Liabilities and Equity $ 659,109,143 $ 677,979,621See accompanying Notes to Consolidated Financial Statements.

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CorEnergy Infrastructure Trust, Inc.CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

For the Three Months Ended For the Six Months Ended

June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Revenue

Leaserevenue $ 16,996,072 $ 6,799,879 $ 33,992,144 $ 14,135,980

Transportationanddistributionrevenue 5,064,680 3,546,979 10,164,131 7,196,714

Financingrevenue — 668,904 162,344 1,329,296

Salesrevenue — 1,665,908 — 4,007,563

Total Revenue 22,060,752 12,681,670 44,318,619 26,669,553

Expenses

Transportationanddistributionexpenses 1,378,306 1,272,025 2,740,631 2,469,993

CostofSales — 569,958 — 1,818,288

Generalandadministrative 2,773,240 1,905,329 6,063,092 4,473,848

Depreciation,amortizationandAROaccretionexpense 5,737,025 3,495,986 11,033,843 7,544,818

Provisionforloanlossanddisposition 369,278 — 5,014,466 —

Total Expenses 10,257,849 7,243,298 24,852,032 16,306,947

Operating Income $ 11,802,903 $ 5,438,372 $ 19,466,587 $ 10,362,606

Other Income (Expense)

Netdistributionsanddividendincome $ 214,169 $ 193,410 $ 589,742 $ 783,818

Netrealizedandunrealizedgain(loss)onotherequitysecurities 1,199,665 43,385 (429,087) 493,183

Interestexpense (3,540,812) (1,126,888) (7,466,821) (2,274,160)

Total Other Income (Expense) (2,126,978) (890,093) (7,306,166) (997,159)

Income before income taxes 9,675,925 4,548,279 12,160,421 9,365,447

Taxes

Currenttaxexpense(benefit) 203,652 104,479 (474,079) 540,235

Deferredtaxexpense(benefit) 206,786 (153,342) (370,609) (268,733)

Income tax expense (benefit), net 410,438 (48,863) (844,688) 271,502

Net Income 9,265,487 4,597,142 13,005,109 9,093,945

Less:NetIncomeattributabletonon-controllinginterest 310,960 412,004 659,461 822,179

Net Income attributable to CorEnergy Stockholders $ 8,954,527 $ 4,185,138 $ 12,345,648 $ 8,271,766

Preferreddividendrequirements 1,037,109 1,037,109 2,074,218 1,774,609

Net Income attributable to Common Stockholders $ 7,917,418 $ 3,148,029 $ 10,271,430 $ 6,497,157

NetIncome $ 9,265,487 $ 4,597,142 $ 13,005,109 $ 9,093,945

Othercomprehensiveincome(loss):

ChangesinfairvalueofqualifyinghedgesattributabletoCorEnergystockholders 3,005 18,202 (208,071) (257,905)

Changesinfairvalueofqualifyinghedgesattributabletonon-controllinginterest 703 4,256 (48,647) (60,299)

Net Change in Other Comprehensive Income (Loss) $ 3,708 $ 22,458 $ (256,718) $ (318,204)

Total Comprehensive Income 9,269,195 4,619,600 12,748,391 8,775,741

Less:Comprehensiveincomeattributabletonon-controllinginterest 311,663 416,260 610,814 761,880

Comprehensive Income attributable to CorEnergy Stockholders $ 8,957,532 $ 4,203,340 $ 12,137,577 $ 8,013,861

EarningsPerCommonShare:

Basic $ 0.66 $ 0.33 $ 0.86 $ 0.69

Diluted $ 0.66 $ 0.32 $ 0.86 $ 0.68

WeightedAverageSharesofCommonStockOutstanding:

Basic 11,912,030 9,523,753 11,927,984 9,423,758

Diluted 15,383,892 9,863,413 11,927,984 9,594,526

Dividendsdeclaredpershare $ 0.750 $ 0.675 $ 1.500 $ 1.325See accompanying Notes to Consolidated Financial Statements.


CorEnergy Infrastructure Trust, Inc.CONSOLIDATED STATEMENTS OF EQUITY

Capital Stock Preferred Stock Additional Paid-in Capital

Accumulated OtherComprehensive

IncomeRetained Earnings

Non-Controlling Interest TotalShares Amount Amount

Balance at December 31, 2014 9,321,010 $ 9,321 $ — $ 309,987,724 $ 453,302 $ — $ 27,090,695 $ 337,541,042

Netincome — — — — — 12,319,911 1,617,206 13,937,117

Netchangeincashflowhedges — — — — (262,505) — (61,375) (323,880)

Totalcomprehensiveincome(loss) — — — — (262,505) 12,319,911 1,555,831 13,613,237IssuanceofSeriesAcumulativeredeemablepreferredstock,7.375%-redemptionvalue — — 56,250,000 (2,039,524) — — — 54,210,476Netofferingproceedsfromissuanceofcommonstock 2,587,500 2,587 — 73,254,777 — — — 73,257,364

SeriesApreferredstockdividends — — — — — (3,503,125) — (3,503,125)

Commonstockdividends — — — (20,529,353) — (8,816,786) — (29,346,139)Commonstockissuedunderdirector'scompensationplan 2,677 3 — 89,997 — — — 90,000Distributionstonon-controllinginterest — — — — — — (2,486,464) (2,486,464)Reinvestmentofdividendspaidtocommonstockholders 28,510 29 — 817,886 — — — 817,915

Balance at December 31, 2015 11,939,697 $ 11,940 $ 56,250,000 $ 361,581,507 $ 190,797 $ — $ 26,160,062 $ 444,194,306

Netincome — — — — — 12,345,648 659,461 13,005,109

Netchangeincashflowhedges — — — — (208,071) — (48,647) (256,718)

Totalcomprehensiveincome(loss) — — — — (208,071) 12,345,648 610,814 12,748,391

Repurchaseofcommonstock (90,613) (91) — (2,041,760) — — — (2,041,851)

SeriesApreferredstockdividends — — — — — (2,074,218) — (2,074,218)

Commonstockdividends — — — (7,630,745) — (10,271,430) — (17,902,175)Commonstockissuedunderdirector'scompensationplan 1,511 2 — 29,998 — — — 30,000Reinvestmentofdividendspaidtocommonstockholders 19,233 19 — 331,804 — — — 331,823Balance at June 30, 2016(Unaudited) 11,869,828 $ 11,870 $ 56,250,000 $ 352,270,804 $ (17,274) $ — $ 26,770,876 $ 435,286,276

See accompanying Notes to Consolidated Financial Statements.

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CorEnergy Infrastructure Trust, Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the Six Months EndedJune 30, 2016 June 30, 2015

Operating ActivitiesNetIncome $ 13,005,109 $ 9,093,945Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:

Deferredincometax,net (370,609) (268,734)Depreciation,amortizationandAROaccretion 12,149,782 8,216,190Provisionforloanloss 5,014,466 —

Lossonrepurchaseofconvertibledebt (68,734) —Netdistributionsanddividendincome,includingrecharacterizationofincome (117,004) (371,323)Netrealizedandunrealizedloss(gain)onotherequitysecurities 429,087 (493,183)Unrealizedgainonderivativecontract (132,094) (34,529)Commonstockissuedunderdirectorscompensationplan 30,000 60,000Changesinassetsandliabilities:(Increase)decreaseinaccountsandotherreceivables (3,733,564) 22,280Decrease(increase)infinancingnoteaccruedinterestreceivable 95,114 (342,874)Increaseinprepaidexpensesandotherassets (143,996) (198,215)(Decrease)increaseinmanagementfeepayable (63,961) 47,959Decreaseinaccountspayableandotheraccruedliabilities (133,100) (702,221)Increaseincurrentincometaxliability — 292,214Increase(decrease)inunearnedrevenue 54,094 (711,230)

Netcashprovidedbyoperatingactivities $ 26,014,590 $ 14,610,279Investing Activities

Proceedsfromassetsandliabilitiesheldforsale 644,934 7,678,246Acquisitionexpenditures — (249,925,974)Purchasesofpropertyandequipment,net (372,230) (19,820)Proceedsfromassetforeclosureandsale 223,451 —Increaseinfinancingnotesreceivable (202,000) (39,248)Returnofcapitalondistributionsreceived 2,134 55,009

Netcashprovided(used)byinvestingactivities $ 296,289 $ (242,251,787)Financing Activities

Debtfinancingcosts (193,000) (132,041)NetofferingproceedsonSeriesApreferredstock — 54,210,476Netofferingproceedsoncommonstock — 73,431,411Netofferingproceedsonconvertibledebt — 111,262,500

Repurchasesofcommonstock (2,041,851) —

Repurchasesofconvertibledebt (931,266) —DividendspaidonSeriesApreferredstock (2,074,218) (1,428,906)Dividendspaidoncommonstock (17,570,352) (11,952,944)Distributionstonon-controllinginterest — (1,131,356)Advancesonrevolvinglineofcredit 44,000,000 45,072,666Paymentsonrevolvinglineofcredit — (35,064,018)Principalpaymentsontermdebt (1,800,000) —Principalpaymentsoncreditfacility (52,202,815) (1,764,000)

Netcash(used)providedbyfinancingactivities $ (32,813,502) $ 232,503,788NetChangeinCashandCashEquivalents $ (6,502,623) $ 4,862,280CashandCashEquivalentsatbeginningofperiod 14,618,740 7,578,164CashandCashEquivalentsatendofperiod $ 8,116,117 $ 12,440,444See accompanying Notes to Consolidated Financial Statements.

Supplementalinformationcontinuedonnextpage.

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CorEnergy Infrastructure Trust, Inc. ( Continued from previous page )CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended

June 30, 2016 June 30, 2015Supplemental Disclosure of Cash Flow InformationInterestpaid $ 6,758,715 $ 1,734,846Incometaxespaid(netofrefunds) $ 3,437 $ (2,999)

Non-Cash Operating ActivitiesChangeinaccountspayableandaccruedexpensesrelatedtoprepaidassetsandotherexpense $ — $ 16,248

Non-Cash Investing ActivitiesChangeinaccountsandotherreceivables $ (450,000) $ —Changeinaccountspayableandaccruedexpensesrelatedtointangiblesanddeferredcosts $ — $ 297,831Changeinaccountspayableandaccruedexpensesrelatedtoacquisitionexpenditures $ — $ (51,699)Changeinaccountspayableandaccruedexpensesrelatedtoissuanceoffinancingandothernotesreceivable $ — $ (39,248)

NetchangeinAssetsHeldforSale,Propertyandequipment,Prepaidexpensesandotherassets,AccountspayableandotheraccruedliabilitiesandLiabilitiesheldforsale $ (1,776,549) $ —

Non-Cash Financing ActivitiesChangeinaccountspayableandaccruedexpensesrelatedtotheissuanceofcommonequity $ — $ 176,338Changeinaccountspayableandaccruedexpensesrelatedtodebtfinancingcosts $ — $ 157,059Reinvestmentofdistributionsbycommonstockholdersinadditionalcommonshares $ 331,823 $ 400,532

See accompanying Notes to Consolidated Financial Statements.

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CorEnergy Infrastructure Trust, Inc.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

June 30, 2016

1. INTRODUCTION AND BASIS OF PRESENTATION

Introduction

CorEnergyInfrastructureTrust,Inc.("CorEnergy"),wasorganizedasaMarylandcorporationandcommencedoperationsonDecember8,2005.TheCompany'scommonsharesarelistedontheNewYorkStockExchangeunderthesymbol“CORR.”Asusedinthisreport, theterms"we","us","our"andthe"Company"refertoCorEnergyanditssubsidiaries.

WeareprimarilyfocusedonacquiringandfinancingmidstreamanddownstreamrealestateassetswithintheU.S.energyinfrastructuresectorandconcurrentlyentering into long-term triple-net participating leases with energy companies. We also may provide other types of capital, including loans secured by energyinfrastructure assets. Targeted assets include pipelines, storage tanks, transmission lines, and gathering systems, among others. These sale-leaseback or realpropertymortgagetransactionsprovidetheenergycompanywithasourceofcapitalthatisanalternativetosourcessuchascorporateborrowing,bondofferings,orequityofferings.Manyofourleasescontainparticipationfeaturesinthefinancialperformanceorvalueoftheunderlyinginfrastructurerealpropertyasset.Thetriple-netleasestructurerequiresthatthetenantpayalloperatingexpensesofthebusinessconductedbythetenant,includingrealestatetaxes,insurance,utilities,andexpensesofmaintainingtheassetingoodworkingorder.Weconsiderourinvestmentsintheseenergyinfrastructureassetstobeasinglebusinesssegmentandreportthemaccordinglyinourfinancialstatements.

TaxableREITsubsidiariesholdoursecuritiesportfolio,operatingbusinessesandcertainfinancingnotesreceivableasfollows:• CorridorPublicHoldings,Inc.anditswholly-ownedsubsidiaryCorridorPrivateHoldings,Inc,holdoursecuritiesportfolio.• Mowood Corridor, Inc. and its wholly-owned subsidiary, Mowood, LLC, which is the holding company for our operating company, Omega Pipeline

Company,LLC.• CorridorMoGas,Inc.holdstheoperatingcompanies,MoGasPipeline,LLC("MoGas")andUnitedPropertySystems,LLC.• CorEnergyBBWS,Inc.,CorridorPrivate,andCorridorLeedsPathWest,Inc.may,fromtimetotime,holdfinancingnotesreceivable.

Basis of Presentation and Use of Estimates

The accompanying consolidated financial statements include our accounts and the accounts of our wholly owned subsidiaries and have been prepared inaccordance withU.S. generally accepted accounting principles (“GAAP”) set forth in the Accounting Standards Codification ("ASC"), as published by theFinancial Accounting Standards Board ("FASB"), and with the Securities and Exchange Commission (“SEC”) instructions to Form 10-Q, and Article 10 ofRegulationS-X.Accordingly,theydonotincludealloftheinformationandfootnotesrequiredbyGAAPforcompletefinancialstatements.Theaccompanyingconsolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the Company's financialposition,resultsofoperations,andcashflowsfortheperiodspresented.Therewerenoadjustmentsthat,intheopinionofmanagement,werenotofanormalandrecurringnature.Allintercompanytransactionsandbalanceshavebeeneliminatedinconsolidation,andournetearningsarereducedbytheportionofnetearningsattributabletonon-controllinginterests.

OperatingresultsforthesixmonthsendedJune30,2016arenotnecessarilyindicativeoftheresultsthatmaybeexpectedfortheyearendingDecember31,2016.These consolidated financial statements and Management's Discussion and Analysis of the Financial Condition and Results of Operations should be read inconjunctionwithourAnnualReportonForm10-K,fortheyearendedDecember31,2015,filedwiththeSEConMarch14,2016.

The financial statements included in this report are based on the selection and application of critical accounting policies, which require management to makesignificant estimates andassumptions. Critical accountingpolicies arethosethat arebothimportant tothepresentationofourfinancial conditionandresults ofoperationsandrequiremanagement'smostdifficult, complex,orsubjectivejudgments.Note2totheConsolidatedFinancialStatements,includedinthisreport,furtherdetailsinformationrelatedtooursignificantaccountingpolicies.

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2. SIGNIFICANT ACCOUNTING POLICIES

A.Use of Estimates –ThepreparationoftheconsolidatedfinancialstatementsinconformitywithGAAPrequiresmanagementtomakeestimatesandassumptionsthat affect the reported amount of assets and liabilities, recognition of distribution income and disclosure of contingent assets and liabilities at the date of theconsolidatedfinancialstatements.Actualresultscoulddifferfromthoseestimates.

B.Earnings Per Share – Basic earnings per share ("EPS") is computed using the weighted average number of common shares outstanding during the period.DilutedEPSiscomputedusingtheweightedaveragenumberofcommonanddilutivecommonequivalentsharesissuableuponconversionoftheconvertiblenotescalculatedusingtheif-convertedmethod.DilutedEPSisnotreportedforaperiodwhenitisanti-dilutive.

C.Investment Securities –TheCompany’sinvestmentsinsecuritiesareclassifiedasotherequitysecuritiesandrepresentinterestsinprivatecompanieswhichtheCompanyhaselectedtoreportatfairvalueunderthefairvalueoption.

Theseinvestmentsgenerallyaresubjecttorestrictionsonresale,havenoestablishedtradingmarket,andarevaluedonaquarterlybasis.Becauseoftheinherentuncertaintyofvaluation,thefairvaluesofsuchinvestments,whicharedeterminedinaccordancewithproceduresapprovedbytheCompany’sBoardofDirectors,maydiffermateriallyfromthevaluesthatwouldhavebeenusedhadareadymarketexistedfortheinvestments.

TheCompanydeterminesfairvaluetobethepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipants at the measurement date. The Company has determined the principal market, or the market in which the Company exits its private portfolioinvestmentswiththegreatestvolumeandlevelofactivity,tobetheprivatesecondarymarket.Typically,privatecompaniesareboughtandsoldbasedonmultiplesofEBITDA,cashflows,netincome,revenues,orinlimitedcases,bookvalue.

For private company investments, value is often realized through a liquidity event. Therefore, the value of the Company as a whole (enterprise value) at thereportingdateoftenprovidesthebestevidenceofthevalueoftheinvestmentandistheinitialstepforvaluingtheCompany’sprivatelyissuedsecurities.Foranyone company, enterprise value maybest be expressed as a range of fair values, fromwhich a single estimate of fair value will be derived. In determining theenterprisevalueofaportfoliocompany,ananalysisispreparedconsistingoftraditionalvaluationmethodologiesincludingmarketandincomeapproaches.TheCompanyconsiderssomeorallofthetraditionalvaluationmethodsbasedontheindividualcircumstancesoftheportfoliocompanyinordertoderiveitsestimateofenterprisevalue.

Thefair valueofinvestments inprivate portfoliocompanies is determinedbasedonvariousfactors, includingenterprise value, observablemarket transactions,suchasrecentofferstopurchaseacompany,recenttransactionsinvolvingthepurchaseorsaleoftheequitysecuritiesofthecompany,orotherliquidationevents.ThedeterminedequityvaluesmaybediscountedwhentheCompanyhasaminorityposition,orissubjecttorestrictionsonresale,hasspecificconcernsaboutthereceptivityofthecapitalmarketstoaspecificcompanyatacertaintime,orothercomparablefactorsexist.

TheCompanyundertakesamulti-stepvaluationprocesseachquarterinconnectionwithdeterminingthefairvalueofprivateinvestments.WehaveretainedanindependentvaluationfirmtoprovidethirdpartyvaluationconsultingservicesbasedonproceduresthattheCompanyhasidentifiedandmayaskthemtoperformfromtimetotimeonalloraselectionofprivateinvestmentsasdeterminedbytheCompany.Themulti-stepvaluationprocessisspecifictothelevelofassurancethattheCompanyrequestsfromtheindependentvaluationfirm.Forpositiveassurance,theprocessisasfollows:

• Theindependentvaluationfirmpreparesthevaluationsandthesupportinganalysis.• Thevaluationreportisreviewedandapprovedbyseniormanagement.• TheAuditCommitteeoftheBoardofDirectorsreviewsthesupportinganalysisandacceptsthevaluations.

D.Financing Notes Receivable -Financingnotesreceivablearepresentedatfacevalueplusaccruedinterestreceivable,deferredloanoriginationcosts,andnetofrelateddirectloanoriginationincome.EachquartertheCompanyreviewsitsfinancingnotesreceivabletodetermineifthebalancesarerealizablebasedonfactorsaffecting the collectability of those balances. Factors may include credit quality, timeliness of required periodic payments, past due status, and managementdiscussionswithobligors.TheCompanyevaluatesthecollectabilityofbothinterestandprincipalofeachofitsloanstodetermineifanallowanceisneeded.Anallowancewillberecordedwhenbasedoncurrentinformationandevents,theCompanydeterminesitisprobablethatitwillbeunabletocollectallamountsdueaccordingtotheexistingcontractualterms.IftheCompanydoesdetermineanallowanceisnecessary,theamountdeemeduncollectableisexpensedintheperiodof determination. An insignificant delay or shortfall in the amount of payments does not necessarily result in the recording of an allowance. Generally, wheninterestand/orprincipalpayments

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onaloanbecomepastdue,orifweotherwisedonotexpecttheborrowertobeabletoserviceitsdebtandotherobligations,wewillplacetheloanonnon-accrualstatusandwillgenerallyceaserecognizingfinancingrevenueonthatloanuntilallprincipalandinteresthavebeenbroughtcurrent.Interestincomerecognitionisresumed if and when the previously reserved-for financing notes become contractually current and performance has been demonstrated. Payments receivedsubsequent totherecordingof anallowancewill berecordedas areductiontoprincipal. DuringthesixmonthsendedJune30,2016and2015,theCompanyrecorded$5.0millionand$0,respectively,inprovisionforloanlosses.TheCompany'sfinancingnotesreceivablearediscussedmorefullyinNote4.

E.Revenue Recognition –SpecificrecognitionpoliciesfortheCompany’srevenueitemsareasfollows:• Lease revenue – BaserentrelatedtotheCompany’sleasedpropertyisrecognizedonastraight-linebasisoverthetermoftheleasewhencollectabilityis

reasonably assured. Contingent rent is recognized when it is earned, based on the achievement of specified performance criteria. Rental paymentsreceivedinadvanceareclassifiedasunearnedrevenueandincludedasaliabilitywithintheConsolidatedBalanceSheets.Unearnedrevenueisamortizedratablyovertheleaseperiodasrevenuerecognitioncriteriaaremet.RentalpaymentsreceivedinarrearsareaccruedandclassifiedasLeaseReceivableandincludedinaccountsandotherreceivableswithintheConsolidatedBalanceSheets.

• Transportation and distribution revenue –Thisrepresentsrevenuerelatedtonaturalgastransportation,distribution,andsupply.TransportationrevenuesarerecognizedbyMoGasonfirmcontractedcapacityoverthecontractperiodregardlessofwhetherthecontractedcapacityisused.Forinterruptibleorvolumetricbasedtransportation,revenueisrecognizedwhenphysicaldeliveriesofnaturalgasaremadeatthedeliverypointagreeduponbybothparties.DistributionrevenueisrecognizedbyOmegabasedonagreeduponcontractualtermsovereachannualperiodduringthetermsofthecontract.BeginningFebruary1,2016,underanewcontract withtheDepartmentofDefense("DOD"),gassalesandcostof(gas)salesarepresentedonanetbasisintheTransportationanddistributionrevenueline.Omegaisalsopaidfeesfortheoperationandmaintenanceofitsnaturalgasdistributionsystem,includinganynecessaryexpansionofthedistributionsystem.Omegaisresponsibleforthecoordination,supervision,andqualityoftheexpansionswhileactualconstructionisgenerallyperformedbythirdpartycontractors. UnderthenewDODcontract, theannualcontractedamountforpipelineexpansionisinvoicedmonthlybyOmegaonastraight-linebasis. Revenues fromexpansionefforts are recognized usingeither a completed contract, percentage of completion, or cost-plus methodbasedonthelevel and volume of estimates utilized, as well as the certainty or uncertainty of our ability to collect those revenues. Amounts invoiced in excess ofearnedrevenueareclassifiedasunearnedrevenueandincludedasaliabilitywithintheConsolidatedBalanceSheets.

• Sales revenue – Revenues related to natural gas and propane are recognized upon delivery of natural gas and propane. Omega, acting as a principal,providesnaturalgasandpropanesupplyforitscustomers.BeginningFebruary1,2016,underanewcontractwiththeDepartmentofDefense("DOD"),Omegaisnolongertheprimaryobligorofproductsalesandassuchnetpresentationhasbeendeterminedtobeappropriate,thereforegassalesandcostof(gas)salesarepresentedonanetbasis.Priortothenewcontract,SalesrevenuerepresentedamountsearnedbyOmegaforgasandpropaneproductsalestocustomersandthecostsofthegasandpropanewerepresentedascostofsales.

• Financing revenue –Our financing notes receivable are considered a core product offering and therefore the related interest incomeis presented as acomponentofoperatingincome.Forincreasingrateloans,baseinterestincomeisrecordedratablyoverthelifeoftheloan,usingtheeffectiveinterestrate. The net amount of deferred loan origination income and costs are amortized on a straight-line basis over the life of the loan and reported as anadjustmenttoyieldinfinancingrevenue.Participatingfinancingrevenuesarerecordedwhenspecificperformancecriteriahavebeenmet.

F.Transportation and distribution expense –IncludedherearebothMoGas'scostsofoperatingandmaintainingthenaturalgastransmissionline,andOmega'scostsofoperatingandmaintainingthenaturalgasdistributionsystem,includinganynecessaryexpansionofthedistributionsystem.Thesecostsareincurredbothinternallyandexternally.Theinternalcostsrelatetosystemcontrol,pipelineoperations,maintenance,insurance,andtaxes.Otherinternalcostsincludepayrollforemployeesassociatedwithgascontrol,fieldemployees,andmanagement.Theexternalcostsconsistofprofessionalservicessuchasauditandaccounting,legalandregulatory,andengineering.

Historically,Omega'samountspaidforgasandpropanedeliveredtocustomerswerepresentedascostofsales.BeginningFebruary1,2016,underanewcontractwith the Department of Defense, amounts paid by Omega for gas and propane are netted against sales and are presented in the transportation and distributionrevenueline.Seeparagraph(E)above.

G.Debt Issuance Costs –Costsincurredfortheissuanceofnewdebtarecapitalizedandreportedasadirectdeductiontothecarryingvalueoftherelateddebtexcept for capitalized costs related to our revolving line of credit which are presented as an asset within Deferred costs, net of accumulated amortization.Amortizationofthesecostsisreportedasinterestexpenseoverthedebtterm.SeeNote10forfurtherdiscussion.

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H.Other Income Recognition –SpecificpoliciesfortheCompany’sotherincomeitemsareasfollows:

• Net distributions and dividend income from investments –Distributionsanddividendsfrominvestmentsarerecordedontheirex-datesandarereflectedasother income within the accompanying Consolidated Statements of Income. Distributions received from the Company’s investments are generallycharacterizedasordinaryincome,capitalgains,anddistributionsreceivedfrominvestmentsecurities.Theportioncharacterizedasreturnofcapitalispaidby our investees from their cash flow from operations. The Company records investment income, capital gains, and distributions received frominvestmentsecuritiesbasedonestimatesmadeatthetimesuchdistributionsarereceived.Suchestimatesarebasedoninformationavailablefromeachcompanyandotherindustrysources.Theseestimatesmaysubsequentlyberevisedbasedoninformationreceivedfromtheentitiesaftertheirtaxreportingperiodsareconcluded,astheactualcharacterofthesedistributionsisnotknownuntilafterthefiscalyearendoftheCompany.

• Net realized and unrealized gain (loss) from investments – Securities transactions are accounted for on the date the securities are purchased or sold.Realizedgainsandlossesarereportedonanidentifiedcostbasis.TheCompanyrecordsinvestmentincomeandreturnofcapitalbasedonestimatesmadeat the time suchdistributions are received. Suchestimates are based oninformation available fromthe portfolio companyandother industry sources.Theseestimatesmaysubsequentlyberevisedbasedoninformationreceivedfromtheportfoliocompanyaftertheirtaxreportingperiodsareconcluded,astheactualcharacterofthesedistributionsarenotknownuntilafterourfiscalyearend.

I.Federal and State Income Taxation –In2013wequalified, andinMarch2014elected(effective asof January1, 2013), tobetreatedasaREITfor federalincometaxpurposes. BecausecertainofourassetsmaynotproduceREIT-qualifyingincomeorbetreatedasinterests inreal property, thoseassetsareheldinwholly-ownedTaxableREITSubsidiaries("TRSs")inordertolimitthepotentialthatsuchassetsandincomecouldpreventusfromqualifyingasaREIT.

AsaREIT,theCompanyholdsandoperatescertainofourassetsthroughoneormorewholly-ownedTRSs.OuruseofTRSsenablesustocontinuetoengageincertain businesses while complying with REIT qualification requirements and also allows us to retain income generated by these businesses for reinvestmentwithout therequirement of distributingthoseearnings. In thefuture, wemayelect to reorganize andtransfer certain assets or operations fromour TRSstotheCompanyorothersubsidiaries,includingqualifiedREITsubsidiaries.

TheCompany's other equity securities are limitedpartnerships or limitedliability companies whichare treatedas partnerships for federal andstate incometaxpurposes.Asalimitedpartner,theCompanyreportsitsallocableshareoftaxableincomeincomputingitsowntaxableincome.TotheextentheldbyaTRS,theTRS'staxexpenseorbenefitisincludedintheConsolidatedStatementsofIncomebasedonthecomponentofincomeorgainsandlossestowhichsuchexpenseorbenefit relates. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financialreportingpurposesandtheamountsusedforincometaxpurposes.Avaluationallowanceisrecognizedif,basedontheweightofavailableevidence,itismorelikelythannotthatsomeportionorallofthedeferredincometaxassetwillnotberealized.ItisexpectedthatforthesixmonthsendedJune30,2016,andfutureperiods,anydeferredtaxliabilityorassetgeneratedwillberelatedentirelytotheassetsandactivitiesoftheCompany'sTRSs.

IfweceasetoqualifyasaREIT,theCompany,asaCcorporation,wouldbeobligatedtopayfederalandstateincometaxonitstaxableincome.Currently,thehighestregularmarginalfederalincometaxrateforacorporationis35percent.TheCompanymaybesubjecttoa20percentfederalalternativeminimumtaxonitsfederalalternativeminimumtaxableincometotheextentthatitsalternativeminimumtaxexceedsitsregularfederalincometax.

J.Recent Accounting Pronouncements –InAugust2014,theFASBissuedASUNo.2014-15"DisclosureofUncertaintiesaboutanEntity’sAbilitytoContinueasaGoingConcern",thatwillrequiremanagementtoevaluatewhetherthereareconditionsandeventsthatraisesubstantialdoubtabouttheCompany’sabilitytocontinueasagoingconcernwithinoneyearafterthefinancialstatementsareissuedonbothaninterimandannualbasis.ManagementwillberequiredtoprovidecertainfootnotedisclosuresifitconcludesthatsubstantialdoubtexistsorwhenitsplansalleviatesubstantialdoubtabouttheCompany’sabilitytocontinueasagoingconcern.ASUNo.2014-15becomeseffectiveforannualperiodsbeginningin2016andforinterimreportingperiodsstartinginthefirstquarterof2017.TheCompanydoesnotexpecttheadoptionofthisamendmenttohaveamaterialimpactonitsconsolidatedfinancialstatements.

InAugust2015,theFASBissuedASUNo.2015-14"RevenuefromContractswithCustomers-DeferraloftheEffectiveDate."TheamendmentsinthisupdatedefertheeffectivedateofASUNo.2014-09"RevenuefromContractswithCustomers",forallentitiesbyoneyear.ASUNo.2014-09addstotheFASBASCbyrequiringentitiestorecognizerevenueinanamountthatreflectstheconsiderationtowhichtheentityexpectstobeentitledinexchangefortransferringgoodsorservices to customers and provide additional disclosures. Additionally, in March 2016, the FASB issued ASU No. 2016-08 "Revenue from Contracts withCustomers

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(Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". ASU2016-08 clarifies the implementation guidance on principalversus agent considerations. Then in April 2016, the FASB issued ASU No. 2016-10 "Revenue from Contracts with Customers (Topic 606): IdentifyingPerformanceObligationsandLicensing",whichclarifiestheguidancerelatedtoidentifyingperformanceobligationsandlicensingimplementationguidance.ASU2016-10reducesthecostandcomplexityofapplyingcertainaspectsoftheguidancebothatimplementationandonanongoingbasis.TheeffectivedateforASU2016-10isthesameasASU2014-09.InMay2016,ASUNo.2016-12"RevenuefromContractswithCustomers(Topic606),Narrow-ScopeImprovementsandPracticalExpedients"wasissuedtoaddressimplementationissuesandprovideadditionalpracticalexpedients.TheeffectivedateforASU2016-12isthesameasASU2014-09. Asamended, the effective date for ASU2014-09for public entities is annual reportingperiods beginningafter December 15, 2017andinterimperiodstherein.Assuch,wewillberequiredtoadoptthestandardinthefirstquarteroffiscalyear2018.Earlyadoptionisnotpermittedbeforethefirstquarteroffiscal year 2017. ASC606maybe adopted usingeither the "full retrospective" approach, in whichthe standard is applied to all of the periods presented, or a"modifiedretrospective"approach.TheCompanyiscurrentlyevaluatingwhichtransitionmethodtouseandthepotentialfutureimpact,ifany,thestandardwillhave on the Company's consolidated financial statements and related disclosures. However, we do not expect its adoption to have a significant impact on ourconsolidatedfinancialstatements,asasubstantialportionofourrevenueconsistsofrentalincomefromleasingarrangements,whichisspecificallyexcludedfromASU2014-09.

InApril2015,theFASBissuedASUNo.2015-03"Interest-ImputationofInterest"tosimplifypresentationofdebtissuancecosts.Theamendmentsinthisupdaterequire debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction fromthe carrying amount of that debtliability, consistent with debt discounts. In June2015, the FASBissuedASUNo. 2015-15"Presentation andSubsequent Measurement of Debt Issuance CostsAssociatedwithLine-of-Credit Arrangements" to clarify that ASUNo. 2015-03does not address thepresentation or subsequent measurement of debt issuancecostsrelatedtoline-of-credit arrangements. Asaresult, anentitymaypresentdebtissuancecostsrelatedtoline-of-credit arrangementsasanasset insteadofadirect deductionfromthecarryingamountofthedebt. WeadoptedtheaccountingstandardsupdateasofJanuary1,2016withretrospectiveapplicationtoourDecember31,2015ConsolidatedBalanceSheets.Theeffectoftheadoptionwastoreclassify$510thousandofdebtissuancecostsatDecember31,2015fromintangiblesanddeferredcosts,netofaccumulatedamortization,tolong-termdebt.

InJanuary2016,theCompanyadoptedASUNo.2015-02"Consolidation(Topic810),AmendmentstotheConsolidationAnalysis."Amongotherchanges,thenewstandardspecificallyeliminatesthepresumptioninthecurrentvotingmodelthatageneralpartnercontrolsalimitedpartnershiporsimilarentityunlessthatpresumptioncanbeovercome.Generally,onlyasinglelimitedpartnerthatisabletoexercisesubstantivekick-outrightswillconsolidate.Whileadoptionofthisstandarddidnotresultinanychangestoconclusionsaboutconsolidatedorunconsolidatedentities,theCompanyhasdeterminedthatPinedaleLPnowqualifiesasavariableinterestentityandthereforerequiresadditionaldisclosures.

InJanuary2016,theFASBissuedASU2016-01,"FinancialInstruments—Overall:RecognitionandMeasurementofFinancialAssetsandFinancialLiabilities,"whichwillrequireentitiestomeasuretheirinvestmentsatfairvalueandrecognizeanychangesinfairvalueinnetincomeunlesstheinvestmentsqualifyforthenewpracticabilityexception.Thepracticabilityexceptionwillbeavailableforequityinvestmentsthatdonothavereadilydeterminablefairvalues.Theguidancewill be effective for us beginning with the first quarter of 2018. We are currently evaluating the impact that adopting the new standard will have on ourconsolidatedfinancialstatements.

InFebruary2016,theFASBissuedASUNo.2016-02"Leases"whichamendstheexistingaccountingstandardsforleaseaccounting,includingrequiringlesseesto recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASUNo. 2016-02 is effective for fiscal years and interimperiodsbeginningafterDecember31,2018.Earlyadoptionispermitted.Thenewleasesstandardrequiresadoptionusingamodifiedretrospectiveapproachforallleasesexistingat,orenteredintoafter,thedateofinitialapplication,andprovidesforcertainpracticalexpedients.Transitionwillrequireapplicationofthenewguidanceatthebeginningoftheearliestcomparativeperiodpresented.Managementisstillintheprocessofevaluatingthisamendment.

InMarch2016,theFASBissuedASU2016-05"EffectofDerivativeContractNovationsonExistingHedgeAccountingRelationships."ThisASUclarifiesthatachangeinthecounterpartyofaderivativecontract(i.e.,anovation)inahedgeaccountingrelationshipdoesnot,inandofitself,requirede-designationofthehedgeaccountingrelationship.ThisASUiseffectiveforfinancialstatementsissuedforfiscalyearsbeginningafterDecember15,2016,andinterimperiodstherein.TheCompanyisevaluatingtheimpactofthisASUonitsfinancialstatementsanddisclosures.

InJune2016,theFASBissuedASU2016-13"FinancialInstruments-CreditLosses"whichintroducesanapproachbasedonexpectedlossestoestimatecreditlossesoncertaintypesoffinancialinstruments.Thenewmodel,referredtoasthecurrentexpectedcreditlosses("CECLmodel"),willapplytofinancialassetssubject tocredit lossesandmeasuredat amortizedcost, andcertainoff-balancesheet credit exposures. ThisASUwill beeffectiveforusduringthefiscal yearbeginningafterDecember15,

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2019,includinginterimperiodswithinthatfiscalyear.EarlyapplicationoftheguidancewillbepermittedforallentitiesforfiscalyearsbeginningafterDecember15,2018,includinginterimperiodswithinthosefiscalyears.Wearecurrentlyevaluatingtheimpactthatadoptingthenewstandardwillhaveonourconsolidatedfinancialstatements.

3. LEASED PROPERTIES AND LEASES

AsofJune30,2016,wehadthreesignificantleasedpropertieslocatedinOregon,Wyoming,Louisiana,andtheGulfofMexico,whichareleasedonatriple-netbasistoourmajortenants,describedinthetablebelow.Thesemajortenantsareresponsibleforthepaymentofalltaxes,maintenance,repairs,insurance,andotheroperatingexpenses relatingto theleasedproperties. Ourlong-term, triple-net leases generally haveaninitial termof11to15years with options for renewals.Lease revenues are scheduled to increase at varying intervals during the initial terms of our leases. The following table summarizes our significant leasedproperties,majortenantsandleaseterms:

Summary of Leased Properties, Major Tenants and Lease TermsProperty GrandIsleGatheringSystem PinedaleLGS(1) PortlandTerminalFacilityLocation GulfofMexico/Louisiana Pinedale,WY Portland,ORTenant EnergyXXIGIGSServices,LLC UltraWyomingLGS,LLC ArcTerminalsHoldingsLLC

Asset DescriptionApproximately153milesofoffshorepipelinewithtotalcapacityof120thousandBbls/d,includinga16-acreonshoreterminalandsaltwaterdisposal

system

Approximately150milesofpipelinesandfourcentralstoragefacilities

A42-acrerailandmarinefacilitypropertyadjacenttotheWillametteRiverwith84

tanksandtotalstoragecapacityofapproximately1.5millionbarrels

Date Acquired June2015 December2012 January2014Initial Lease Term 11years 15years 15years

Renewal Option equaltothelesserof9-yearsor75percentoftheremainingusefullife 5-yearterms 5-yearterms

Current Monthly RentPayments

7/1/15-7/30/16:$2,625,4177/1/16-7/30/17:$2,826,250 $1,723,833 $513,355

Initial EstimatedUseful Life 30years 26years 30years

(1) Non-Controlling Interest Partner - Prudential funded a portion of the Pinedale LGS acquisition and, as a limited partner, holds 18.95 percent of the economic interest in Pinedale LP. Thegeneral partner, Pinedale GP, a wholly-owned subsidiary of the Company, holds the remaining 81.05 percent of the economic interest.

ThefuturecontractedminimumrentalreceiptsforallleasesasofJune30,2016,areasfollows:

Future Minimum Lease Receipts

Years Ending December 31, Amount

2016 $ 30,393,548

2017 60,931,762

2018 61,139,762

2019 63,468,195

2020 70,629,654

Thereafter 451,794,133

Total $ 738,357,054

ThetablebelowdisplaystheCompany'sindividuallysignificantleasesasapercentageoftotalleasedpropertiesandtotalleaserevenuesfortheperiodspresented:

As a Percentage of (1)

Leased Properties Lease Revenues

As of As of For the Three Months Ended For the Six Months Ended

June 30, 2016 December 31, 2015 June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

PinedaleLGS 39.8% 40.0% 30.4% 75.9% 30.4% 73.0%GrandIsleGatheringSystem 50.1% 50.1% 59.8% — 59.8% —

PortlandTerminalFacility 9.8% 9.6% 9.7% 23.8% 9.7% 22.2%PublicServiceofNewMexico(2) — — — — — 4.5%

(1) Insignificant leases are not presented; thus percentages may not sum to 100%.(2) The Public Service of New Mexico lease terminated on April 1, 2015.

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ThefollowingtablereflectsthedepreciationandamortizationincludedintheaccompanyingConsolidatedStatementsofIncomeassociatedwithourleasesandleasedproperties:

For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Depreciation Expense

GIGS $ 2,153,928 $ — $ 4,297,650 $ —

Pinedale 2,217,360 2,217,360 4,434,720 4,434,720

PortlandTerminalFacility 318,915 422,403 205,256 829,236

EasternInterconnectProject — — — 569,670

UnitedPropertySystems 7,425 7,425 14,850 14,850

TotalDepreciationExpense $ 4,697,628 $ 2,647,188 $ 8,952,476 $ 5,848,476

Amortization Expense - Deferred Lease Costs

GIGS $ 7,641 $ — $ 15,282 $ —

Pinedale 15,342 15,342 30,684 30,684

TotalAmortizationExpense-DeferredLeaseCosts $ 22,983 $ 15,342 $ 45,966 $ 30,684

ThefollowingtablereflectsthedeferredcoststhatareincludedintheaccompanyingConsolidatedBalanceSheetsassociatedwithourleasedproperties:

June 30, 2016 December 31, 2015

Net Deferred Lease Costs

GIGS $ 305,729 $ 321,011

Pinedale 703,770 734,454

TotalDeferredLeaseCosts,net $ 1,009,499 $ 1,055,465

Substantiallyallofourtenants'financialresultsdependonthesaleofrefinedpetroleumproducts.Asaresult,ourtenants'financialresultsarehighlydependentonthe performance of the petroleummarketing industry, which is highly competitive and subject to volatility. During the terms of our leases, we monitor creditqualityofourtenants byreviewingtheir publishedcredit ratings, if available, reviewingpubliclyavailable financial statements, or reviewingfinancial orotheroperating statements, monitoring news reports regarding our tenants and their respective businesses, and monitoring the timeliness of lease payments and theperformanceofotherfinancialcovenantsundertheirleases.

Ultra Petroleum

OnApril29,2016UltraPetroleum,filedavoluntarypetitiontoreorganizeunderChapter11.ThefilingincludesUltraWyomingLGS,LLC,theoperatorofthePinedale LGS and tenant of the Pinedale Lease Agreement. The bankruptcy filing of both the guarantor, Ultra Petroleum, and the tenant and circumstancesprompting the filing constitute defaults under the terms of the Pinedale Lease Agreement. The bankruptcy filing serves as a stay of the Company's ability toexerciseremediesforcertainofthosedefaults. However, Section365oftheBankruptcyCoderequiresUltraWyomingtocomplyonatimelybasiswithmanyprovisionsofthePinedaleLeaseAgreement,includingthepaymentprovisions.TheonlyexceptiontothatrequirementisifUltraWyomingtakesspecificactiontorejectthePinedaleLeaseAgreement.UltraWyominghasnotfiledamotiontorejectthePinedaleLease.Allscheduledleasepaymentsarecurrent.Foradditionalinformation,pleaserefertotheCompany'sCurrentReportonForm8-KfiledwiththeSEConMay3,2016.

UltraPetroleumiscurrentlysubjecttothereportingrequirementsundertheExchangeActandisrequiredtofilewiththeSECannualreportscontainingauditedfinancial statements and quarterly reports containing unaudited financial statements. While the SEC, under certain circumstances, may accept reporting on amodified basis froman issuer involved in a bankruptcy proceeding, the Company currently has no indication that Ultra Petroleumhas requested or intends torequest such relief. Its stock is currently trading on the OTCMarkets (OTCPink: UPLMQ). Other SECfilings can be found at www.sec.gov(UPLMQ)or atwww.otcmarkets.com(UPLMQ).TheCompanymakesnorepresentationastotheaccuracyorcompletenessoftheauditedandunauditedfinancialstatementsofUltraPetroleum,buthasnoreasontodoubttheaccuracyorcompletenessofsuchinformation.Inaddition,UltraPetroleumhasnoduty,contractualorotherwise,toadvisetheCompanyofanyeventsthatmighthaveoccurredsubsequenttothedateofsuchfinancialstatementswhichcouldaffectthesignificanceoraccuracyofsuchinformation.

EXXI

OnApril14,2016,EnergyXXIandsubstantiallyallofitsdirectlyandindirectlyownedsubsidiariesfiledavoluntarypetitiontoreorganizeunderChapter11,afterreachinganagreementwithcertaincreditorstoprovidesupportforarestructuringofitsdebt.

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The bankruptcy filing of Energy XXI, the guarantor of the Grand Isle Lease Agreement, and its failure to make interest payments to its creditors within theapplicable cure period, would have constituted defaults under the terms of the Grand Isle Lease Agreement. However, to facilitate post-filing financingarrangementsbetweentheEXXIDebtorGroupanditslenders,theCompanyprovidedaconditionalwaivertocertainremediesavailabletoitasaresultofthesenon-monetarydefaults.EXXITenant,hasnotfiledforbankruptcy.Therefore,itsobligationsundertheGrandIsleLeaseAgreementarecurrentlynotsubjecttotheproceedingsaffectingtheEXXIDebtorGroup.TheCompanyhasnotcompromisedanyremediesavailabletoitforanydefaultbyEXXITenantundertheGrandIsleLeaseAgreement.Allscheduledleasepaymentsarecurrent.Foradditionalinformation,pleaserefertotheCompany'sCurrentReportonForm8-KfiledwiththeSEConApril14,2016.

EXXIiscurrentlysubjecttothereportingrequirementsundertheExchangeActandisrequiredtofilewiththeSECannualreportscontainingauditedfinancialstatementsandquarterlyreportscontainingunauditedfinancialstatements.WhiletheSEC,undercertaincircumstances,mayacceptreportingonamodifiedbasisfromanissuerinvolvedinabankruptcyproceeding,theCompanycurrentlyhasnoindicationthatEXXIhasrequestedorintendstorequestsuchrelief.ItsstockiscurrentlytradingontheOTCMarkets(OTCPink:EXXIQ).OtherSECfilingscanbefoundatwww.sec.gov(EXXI)oratwww.otcmarkets.com(EXXIQ).TheCompanymakesnorepresentationastotheaccuracyorcompletenessoftheauditedandunauditedfinancialstatementsofEXXI,buthasnoreasontodoubttheaccuracy or completeness of such information. In addition, EXXIhas no duty, contractual or otherwise, to advise the Companyof any events that might haveoccurredsubsequenttothedateofsuchfinancialstatementswhichcouldaffectthesignificanceoraccuracyofsuchinformation.

Arc Logistics

ArcLogisticsiscurrentlysubjecttothereportingrequirementsoftheExchangeActandisrequiredtofilewiththeSECannualreportscontainingauditedfinancialstatementsandquarterlyreportscontainingunauditedfinancialstatements. TheauditedfinancialstatementsandunauditedfinancialstatementsofArcLogisticscanbefoundontheSEC'swebsiteatwww.sec.gov(NYSE:ARCX).TheCompanymakesnorepresentationastotheaccuracyorcompletenessoftheauditedandunauditedfinancial statementsofArcLogisticsbuthasnoreasontodoubttheaccuracyorcompletenessofsuchinformation. Inaddition,ArcLogisticshasnoduty, contractual or otherwise, to advise theCompanyof anyevents that might haveoccurredsubsequent to thedate of suchfinancial statements whichcouldaffectthesignificanceoraccuracyofsuchinformation.NoneoftheinformationinthepublicreportsofArcLogisticsthatarefiledwiththeSECisincorporatedbyreferenceinto,orinanywayform,apartofthisfiling.

4. FINANCING NOTES RECEIVABLE

Black Bison Financing Notes

TheCompanydidnotrecordanyfinancingrevenuerelatedtotheBlackBisonLoansforthethree-orsix-monthperiodsendedJune30,2016.ThesenoteswereconsideredbytheCompanytobeonnon-accrualstatusandhavebeenreflectedassuchinthefinancialstatements.OnFebruary29,2016,theCompanyforeclosedon100percentoftheequityofBBIntermediate,theborroweroftheBlackBisonfinancingnotes,aswellasalloftheothercollateralsecuringtheBlackBisonLoans.Theforeclosurewasacceptedinsatisfactionof$2.0millionofthetotaloutstandingloanbalance.AsofJune30,2016,thenetnotereceivablefromBBWSisvaluedat$0.Therealpropertyassetsweresoldordisposedof,asfurtherdescribedinNote7,PropertyandEquipment.TheremainingworkingcapitalassetsandliabilitiesacquiredasaresultoftheforeclosurearepresentedinappropriatecategorieswithintheCompany'sConsolidatedBalanceSheetatJune30,2016.

Four Wood Financing Note Receivable

As a result of the decreased economic activity by SWD, the Company recorded a provision for loan loss with respect to the SWDLoans. The 2016 incomestatementreflectsaProvisionforLoanLossof$3.5million,whichincludes$71thousandofdeferredoriginationincomeand$98thousandofinterestaccruedundertheoriginalloanagreements.Thebalanceofthenote,netofthereserveforloanloss,representstheamountexpectedtoberealizedasofJune30,2016.OurnotewithSWDissecuredbyphysicalassetsownedbySWD.WehavevaluedtheenterprisevalueofSWD,andthusthevalueofthecollateralsupportingtheFourWoodNotes,at$1.5millionasofJune30,2016.

5. VARIABLE INTEREST ENTITIES

TheCompanyexaminesspecificcriteriaandusesitsjudgmentwhendeterminingiftheCompanyistheprimarybeneficiaryofaVIEandisthereforerequiredtoconsolidatetheinvestments.FactorsconsideredindeterminingwhethertheCompanyistheprimarybeneficiaryincluderisk-and-rewardsharing,experienceandfinancialconditionoftheotherpartner(s),votingrights,involvementinday-to-daycapitalandoperatingdecisions,representationonaVIE'sexecutivecommitteeorBoardofDirectors,whetherornottheCompanyhasthepowertodirecttheactivitiesoftheVIEthatmostsignificantlyimpacttheVIE'seconomic

20


performance,existenceofunilateralkick-outrightsorvotingrights,andthelevelofeconomicdisproportionalitybetweentheCompanyandtheotherpartner(s).

Consolidated VIEs

The Company adopted ASU2015-02, Amendments to the Consolidation Analysis. This standard amends certain guidance applicable to the consolidation ofvarious legal entities, including variable interest entities (“VIE”). Among the changes, the new standard specifically eliminates the presumption in the currentvoting model that a general partner controls a limited partnership or similar entity unless that presumption can be overcome. Generally, only a single limitedpartner that is able to exercise substantive kick-out rights will consolidate. While adoption of this standard did not result in any changes to conclusions aboutconsolidatedorunconsolidatedentities,theCompanyhasdeterminedthatPinedaleLPandGrandIsleCorridorqualifyasvariableinterestentitiesasofJune30,2016.

6. INCOME TAXES

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting and taxpurposes.ComponentsoftheCompany’sdeferredtaxassetsandliabilitiesasofJune30,2016,andDecember31,2015,areasfollows:

Deferred Tax Assets and Liabilities June 30, 2016 December 31, 2015Deferred Tax Assets:

Netoperatinglosscarryforwards $ 1,069,948 $ 543,116Netunrealizedlossoninvestmentsecurities 534,009 251,539LoanLossProvision 605,107 1,257,436Otherlosscarryforwards 2,554,620 1,833,240Sub-total $ 4,763,684 $ 3,885,331

Deferred Tax Liabilities: Basisreductionofinvestmentinpartnerships $ (2,106,042) $ (2,159,058)Costrecoveryofleasedandfixedassets (680,057) (119,297)Sub-total $ (2,786,099) $ (2,278,355)

Total net deferred tax asset $ 1,977,585 $ 1,606,976

ForthesixmonthsendedJune30,2016,thetotaldeferredtaxassetpresentedaboverelatestotheCompany'sTRSs.TheCompanyrecognizesthetaxbenefitsofuncertaintaxpositionsonlywhenthepositionis“morelikelythannot”tobesustaineduponexaminationbythetaxauthoritiesbasedonthetechnicalmeritsofthetaxposition.TheCompany’spolicyistorecordinterestandpenaltiesonuncertaintaxpositionsaspartoftaxexpense.TaxyearssubsequenttotheyearendingNovember30,2007,remainopentoexaminationbyfederalandstatetaxauthorities.

Totalincometaxexpense/(benefit)differsfromtheamountcomputedbyapplyingthefederalstatutoryincometaxrateof35percentforthethreeandsixmonthsendedJune30,2016and2015,toincomeorlossfromoperationsandotherincomeandexpensefortheyearspresented,asfollows:

Income Tax Expense (Benefit) For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Applicationofstatutoryincometaxrate $ 3,277,737 $ 1,436,710 $ 4,025,336 $ 2,990,144

Stateincometaxes,netoffederaltax(benefit) 25,234 (8,988) (58,026) 28,063FederalTaxAttributabletoIncomeofRealEstateInvestmentTrust (2,892,533) (1,476,585) (4,811,998) (2,746,705)

Total income tax expense (benefit) $ 410,438 $ (48,863) $ (844,688) $ 271,502

Total incometaxes are computed by applying the federal statutory rate of35percentplus a blended state income tax rate. Corridor Public Holdings, Inc. andCorridorPrivateHoldings,Inc.hadablendedstaterateofapproximately2.82percentforthethreeandsixmonthsendedJune30,2016and3.92percentforthethreeandsixmonthsendedJune30,2015.CorEnergyBBWS,Inc.doesnotrecordaprovisionforstateincometaxesbecauseitoperatesonlyinWyoming,whichdoesnothavestateincometax.BecauseMowoodCorridor,Inc.andCorridorMoGas,Inc.primarilyonlyoperateinthestateofMissouri,ablendedstateincometaxrateof5percentwasusedfortheoperationsofbothTRSsforthethreeandsixmonthsendedJune30,2016and2015.Forthethree

21


andsixmonthsendedJune30,2016,alloftheincometaxbenefitpresentedaboverelatestotheassetsandactivitiesheldintheCompany'sTRSs.Thecomponentsofincometaxexpense/(benefit)includethefollowingfortheperiodspresented:

Components of Income Tax Expense (Benefit) For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015Current tax expense (benefit)

Federal $ 188,467 $ 94,312 $ (438,730) $ 486,258State(netoffederaltaxbenefit) 15,185 10,167 (35,349) 53,977

Totalcurrenttaxexpense(benefit) $ 203,652 $ 104,479 $ (474,079) $ 540,235

Deferred tax expense (benefit) Federal $ 196,737 $ (134,187) $ (347,932) $ (242,819)State(netoffederaltaxbenefit) 10,049 (19,155) (22,677) (25,914)

Totaldeferredtaxexpense(benefit) $ 206,786 $ (153,342) $ (370,609) $ (268,733)Total income tax expense (benefit), net $ 410,438 $ (48,863) $ (844,688) $ 271,502

AsofDecember31,2015,theTRSsincurredanaggregatenetoperatinglossof$1.4million.Thenetoperatinglossmaybecarriedforwardfor20years.Ifnotutilized,thisnetoperatinglosswillexpireasfollows:$90thousand,$804thousandand$478thousandintheyearsendingDecember31,2033,2034,and2035respectively. The amount of deferred tax asset for net operating losses as of June30, 2016 , includes amounts for the six months ended June30, 2016 .Theaggregatecostofsecuritiesforfederalincometaxpurposesandsecuritieswithunrealizedappreciationanddepreciation,wereasfollows:

Aggregate Cost of Securities for Income Tax Purposes (Unaudited) June 30, 2016 December 31, 2015Aggregate cost for federal income tax purposes $ 4,329,517 $ 4,750,252

Grossunrealizedappreciation 4,156,619 5,133,908Grossunrealizeddepreciation — (97,500)Net unrealized appreciation $ 4,156,619 $ 5,036,408

7. PROPERTY AND EQUIPMENTPropertyandequipmentconsistsofthefollowing:

Property and Equipment June 30, 2016 December 31, 2015Land $ 580,000 $ 580,000Naturalgaspipeline 124,713,233 124,386,349Vehiclesandtrailers 570,267 524,921Officeequipmentandcomputers 87,696 87,696Gross property and equipment $ 125,951,196 $ 125,578,966Less:accumulateddepreciation (7,615,837) (5,948,988)

Net property and equipment $ 118,335,359 $ 119,629,978

Depreciationofpropertyandequipmentisasfollows:


Depreciation Expense $ 842,040 $ 833,456 $ 1,676,945 $ 1,665,658

Assets and Liabilities Held for Sale

EffectiveFebruary29,2016,theCompanyforeclosedon100percentoftheequityofBBIntermediate,theholdingcompanyofBBWS,theborroweroftheBlackBisonfinancingnotes.OnJune16,2016theCompanyenteredintoanassetsaleagreementwithExpeditionWaterSolutionsforthesaleofspecifieddisposalwellsandrelatedequipmentasoutlinedinthesaleagreement.Considerationreceivedbythecompanyincluded$748thousandcash,netoffees,andthefuturerighttocashpaymentstotaling$6.5million,whichwasfairvaluedat$450thousandandisincludedinAccountsandotherreceivableswithintheConsolidatedBalanceSheetatJune30,2016.Therightstofuturecashpaymentsaretiedtothefuturevolumesofwaterdisposedineachofthe

22


wellssold.Alsoasaresultofthesale,theCompanyrecognizedalossofapproximately$369thousandwhichhasbeenincludedintheProvisionforloanlosseswithintheConsolidatedStatementofIncome.

OnJune30,2016,assetsacquiredbyBBWSinaseller-financedtransactionpriortotheCompany'sforeclosureonBBIntermediate,werereturnedtothesellerinfullsatisfactionoftheremainingnotebalanceofapproximately$439thousand.

TherewerenoassetsorliabilitiesheldforsaleatJune30,2016orDecember31,2015.

8. MANAGEMENT AGREEMENT

TheCompanypays Corridor as the Company's Manager pursuant to a Management Agreement described in detail in Note 11, Management Agreement, in theNotestoConsolidatedFinancialStatementsintheCompany'sannualreportonForm10-KfortheyearendedDecember31,2015,aspreviouslyfiledwiththeSEC.In light of the provisions for loan losses recognized by the Company on certain of its energy infrastructure financing investments (collectively, the"UnderperformingLoans")during2015andthefirstquarterof2016,theManagervoluntarilyrecommended,andtheCompanyagreed,thateffectiveonandaftertheCompany'sMarch31,2016balancesheetdate,solelyforthepurposeofcomputingthevalueoftheCompany’sManagedAssetsincalculatingthequarterlymanagement fee under the terms of the Management Agreement, that portion of the Management Fee attributable to the Company’s investment in theUnderperformingLoansshallbebasedontheestimatednetrealizablevalueofsuchloans,whichshall notexceedtheamountinvestedintheUnderperformingLoansasoftheendofthequarterforwhichtheManagementFeeistobecalculated.ThisagreementsupersededaprioragreementbetweentheCompanyandtheManager,whichwaseffectiveasofSeptember30,2015,concerningvaluationoftheBlackBisonLoansforpurposesofcalculatingtheManagementFee.

EffectiveJune30,2016,theManagervoluntarilyrecommended,andtheCompanyagreed,thattheManagerwouldwaive$54,305ofthetotal$149,123incentivefeethatwouldotherwisebepayableundertheprovisionsoftheManagementAgreementwithrespecttodividendspaidontheCompany'scommonstockduringthethreemonthsendedJune30,2016.

FeesincurredundertheManagementAgreementforthethreeandsixmonthsendedJune30,2016were$1.6millionand$3.5million,respectively,comparedto$1.2millionand$2.3million,respectively,forthethreeandsixmonthsendedJune30,2015.FeesincurredundertheManagementAgreementarereportedintheGeneralandAdministrativelineitemontheincomestatement.

TheCompanypaysCorridor,astheCompany'sAdministratorpursuanttoanAdministrativeAgreement.FeesincurredundertheAdministrativeAgreementforthethreeandsixmonthsendedJune30,2016were$65thousandand$132thousand,respectively,comparedto$45thousandand$91thousand,respectively,forthethreeandsixmonthsendedJune30,2015. FeesincurredundertheAdministrativeAgreementarereportedintheGeneralandAdministrativelineitemontheincomestatement.

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9. FAIR VALUE

Theinputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The followingtables provide the fair value measurements of applicable Company assets and liabilities by level within the fair value hierarchy as of June 30, 2016 , andDecember31,2015.Theseassetsandliabilitiesaremeasuredonarecurringbasis.

June 30, 2016

June 30, 2016

Fair Value Level 1 Level 2 Level 3Assets: Otherequitysecurities $ 8,036,137 $ — $ — $ 8,036,137Total Assets $ 8,036,137 $ — $ — $ 8,036,137

Liabilities: InterestRateSwapDerivative $ 124,624 $ — $ 124,624 $ —Total Liabilities $ 124,624 $ — $ 124,624 $ —

December 31, 2015

December 31, 2015

Fair Value Level 1 Level 2 Level 3Assets: Otherequitysecurities $ 8,393,683 $ — $ — $ 8,393,683InterestRateSwapDerivative 98,259 — 98,259 —Total Assets $ 8,491,942 $ — $ 98,259 $ 8,393,683

OnMarch30,2016,theCompanyterminatedoneofthe$26.3millioncashflowhedgesconcurrentwiththeassignmentofthe$70millionsecuredtermcreditfacility. The remaining cash flowhedge was de-designated as of March 30, 2016, and continues to be valued using a consistent methodology and therefore isclassifiedasaLevel2investment.Subsequenttode-designation,changesinthefairvaluewillberecognizedinearningsintheperiodinwhichthechangesoccur.

ThechangesforallLevel3securitiesmeasuredatfairvalueonarecurringbasisusingsignificantunobservableinputsforthesixmonthsendedJune30,2016and2015,areasfollows:

Level 3 Rollforward

For the SixMonths EndedJune 30, 2016

Fair ValueBeginningBalance Acquisitions Disposals

Total Realizedand UnrealizedGains/(Losses)Included in Net

Income

Return ofCapital

AdjustmentsImpacting Cost

Basis ofSecurities

Fair ValueEndingBalance

Changes inUnrealized

Losses,Included In Net

Income,Relating to

Securities StillHeld (1)

Otherequitysecurities $ 8,393,683 $ — $ — $ (472,416) $ 114,869 $ 8,036,136 $ (472,416)

Total $ 8,393,683 $ — $ — $ (472,416) $ 114,869 $ 8,036,136 $ (472,416)

For the Six

Months EndedJune 30, 2015

Otherequitysecurities $ 9,217,181 $ — $ — $ 451,311 $ 316,313 $ 9,984,805 $ 451,311WarrantInvestment 355,000 — — (240,000) — 115,000 (240,000)

Total $ 9,572,181 $ — $ — $ 211,311 $ 316,313 $ 10,099,805 $ 211,311

(1) Located in Net realized and unrealized gain on other equity securities in the Consolidated Statements of Income

TheCompanyutilizesthebeginningofreportingperiodmethodfordeterminingtransfersbetweenlevels.Therewerenotransfersbetweenlevels1,2or3forthesixmonthsendedJune30,2016and2015.

InconnectionwiththeOctober2014saleoftheCompany'ssharesinVantaCore,aportionoftheproceedswereplacedinescrowandareceivablewasrecorded.Changes in the fair value of the escrow receivable are recorded as a net realized or unrealized gain or loss on other equity securities included within theConsolidatedStatementsofIncomeandComprehensiveIncome.Forthe

24


threeandsixmonthsendedJune30,2016,approximately$0and$43thousand,wasincludedasanunrealizedgain,respectively,comparedto$282thousandforthethreeandsixmonthsendedJune30,2015,respectively.

Valuation Techniques and Unobservable Inputs

TheCompany’sotherequitysecurities,whichrepresentsecuritiesissuedbyprivatecompanies,areclassifiedasLevel3assets.Significantjudgmentisrequiredinselectingtheassumptionsusedtodeterminethefairvaluesoftheseinvestments.SeeNote2,SignificantAccountingPolicies,foradditionaldiscussion.

For the three months and six months ended June 30, 2015 , the Company’s Warrant Investment was valued using a binomial option pricing model. The keyassumptionsusedinthebinomialmodelwerethefairvalueofequityoftheunderlyingbusiness;theWarrant'sstrikeprice;theexpectedvolatilityofequity;thetime to the Warrant's expiry; the risk-free rate, and the expected dividend yields. Due to the inherent uncertainty of determining the fair value of the WarrantInvestment,whichdidnothaveareadilyavailablemarket,theassumptionsusedthebinomialmodeltovaluetheCompany’sWarrantInvestmentwerebasedonLevel2andLevel3inputs.

AsofJune30,2016and2015,theCompany’sinvestmentinLightfootCapitalPartners,LPandLightfootCapitalPartnersGPLLC,collectively,("Lightfoot")isits only remaining significant private company investment. Lightfoot in turn owns a combination of public and private investments. Therefore, Lightfoot wasvaluedusingacombinationofthefollowingvaluationtechniques:(i)publicsharepriceofprivatecompanies'investmentsdiscountedforalackofmarketability,withthediscountestimatedat7.9percentto8.9percentand16.6percentto21.3percentasofJune30,2016and2015,respectively,and(ii)discountedcashflowanalysisusinganestimateddiscountrateof15.0percentto17.0percentand12.0percentto14.0percentasofJune30,2016and2015,respectively.Duetotheinherentuncertaintyofdeterminingthefairvalueofinvestmentsthatdonothaveareadilyavailablemarketvalue,thefairvalueoftheCompany’sinvestmentmayfluctuatefromperiodtoperiod.Additionally,thefairvalueoftheCompany’sinvestmentmaydifferfromthevaluesthatwouldhavebeenusedhadareadymarketexistedforsuchinvestmentandmaydiffermateriallyfromthevaluesthattheCompanymayultimatelyrealize.

AsofbothJune30,2016and2015,theCompanyhelda6.6percentand1.5percentequityinterestinLightfootLPandLightfootGP,respectively.Lightfoot’sassets include an ownership interest in Gulf LNG, a 1.5 billion cubic feet per day (“bcf/d”) receiving, storage, and regasification terminal in Pascagoula,Mississippi, andcommonunits andsubordinatedunits representing anapproximately40percentaggregate limitedpartner interest, anda noneconomicgeneralpartnerinterest,inArcLogisticsPartnersLP(NYSE:ARCX).WeholdobservationrightsonLightfoot'sBoardofDirectors.

Certaincondensedcombinedunauditedfinancialinformationoftheunconsolidatedaffiliate,Lightfoot,ispresentedinthefollowingtables(inthousands).

June 30, 2016

(Unaudited) December 31, 2015

(Unaudited)

Assets

Currentassets $ 23,828 $ 24,276

Noncurrentassets 701,202 696,461

TotalAssets $ 725,030 $ 720,737

Liabilities

Currentliabilities $ 17,578 $ 19,993

Noncurrentliabilities 264,338 246,808

TotalLiabilities $ 281,916 $ 266,801

Partner's equity 443,114 453,936

Totalliabilitiesandpartner'sequity $ 725,030 $ 720,737

25


For the Three Months Ending

(Unaudited) For the Six Months Ending

(Unaudited)

June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Revenues $ 26,243 $ 19,110 $ 52,310 $ 32,667

Operatingexpenses 20,812 17,540 42,884 32,668

Income(Loss)fromOperations $ 5,431 $ 1,570 $ 9,426 $ (1)

Otherincome 2,369 3,320 4,743 7,154

NetIncome $ 7,800 $ 4,890 $ 14,169 $ 7,153Less:NetIncomeattributabletonon-controllinginterests (7,786) (4,837) (14,079) (7,063)

NetIncomeattributabletoPartner'sCapital $ 14 $ 53 $ 90 $ 90

ThefollowingsectiondescribesthevaluationmethodologiesusedbytheCompanyforestimatingfairvalueforfinancialinstrumentsnotrecordedatfairvalue,butfairvalueisincludedfordisclosurepurposesonly,asrequiredunderdisclosureguidancerelatedtothefairvalueoffinancialinstruments.

Cash and Cash Equivalents — The carrying value of cash, amounts due from banks, federal funds sold and securities purchased under resale agreementsapproximatesfairvalue.

Escrow Receivable —AtDecember31,2015,thefairvalueoftheescrowreceivable,whichrelatedtothesaleofVantaCore,wasreflectednetofadiscountforthepotential that the full amount due to the Company would not be realized. On April 1, 2016, the Company recorded a gain when the full value of the escrowreceivablewasreceived.

Financing Notes Receivable —Thefinancingnotesreceivablearevaluedonanon-recurringbasis.Thefinancingnotesreceivablearereviewedforimpairmentwheneventsorchangesincircumstancesindicatethatthecarryingamountofsuchassetsmaynotberecoverable.FinancingNoteswithcarryingvaluesthatarenotexpectedtoberecoveredthroughfuturecashflowsarewritten-downtotheirestimatednetrealizablevalue.

Hedged Derivative Asset/Liability —TheCompanyusesinterestrateswapstomanageinterestraterisk.Thefairvalueoftheseinstrumentsisdeterminedusingwidelyacceptedvaluationtechniquesincludingdiscountedcashflowanalysisontheexpectedcashflowsoftherespectivederivative.

Long-term Debt —ThefairvalueoftheCompany’slong-termdebtiscalculated,fordisclosurepurposes,bydiscountingfuturecashflowsbyarateequaltotheexpectedmarketrateforanequivalenttransaction.

Line of Credit —Thecarryingvalueofthelineofcreditapproximatesthefairvalueduetoitsshort-termnature.

Carrying and Fair Value Amounts Level

within fairvalue

hierarchy

June 30, 2016 December 31, 2015

CarryingAmount Fair Value

CarryingAmount Fair Value

Financial Assets:

Cashandcashequivalents Level1 $ 8,116,117 $ 8,116,117 $ 14,618,740 $ 14,618,740

Escrowreceivable Level2 $ — $ — $ 1,392,917 $ 1,392,917

Financingnotesreceivable(Note5) Level2 $ 1,500,000 $ 1,500,000 $ 7,675,626 $ 7,675,626

HedgedDerivativeAsset Level2 $ — $ — $ 98,259 $ 98,259

Financial Liabilities: Long-termdebt(1) Level2 $ 162,330,789 $ 166,427,075 $ 217,375,153 $ 193,573,834

Lineofcredit Level2 $ 44,000,000 $ 44,000,000 $ — $ —

HedgedDerivativeLiability Level2 $ 124,624 $ 124,624 $ — $ —

(1) Includes current maturities

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10. CREDIT FACILITIES

ThefollowingisasummaryofourseniornotespayableandotherdebtasofJune30,2016,andDecember31,2015:

TotalCommitmentorOriginalPrincipal

QuarterlyPrincipalPayments

June30,2016 December31,2015

MaturityDate

AmountOutstanding

InterestRate

AmountOutstanding

InterestRate

7%ConvertibleSeniorNotes $ 115,000,000 $ — 6/15/2020 $ 114,000,000 7.00% $ 115,000,000 7.00%

RegionsCreditFacilities:

RegionsRevolver(1) $ 105,000,000 $ — 12/15/2019 44,000,000 3.70% — 3.07%

RegionsTermLoan $ 45,000,000 $ 1,615,000 12/15/2019 41,400,000 3.70% 43,200,000 3.07%

MoGasRevolver $ 3,000,000 $ — 12/15/2019 — 3.70% — 3.07%

OmegaLineofCredit $ 1,500,000 $ — 7/31/2016 — 4.47% — 4.43%

PinedaleCreditFacility:

$70MTermLoan $ 70,000,000 $ — 3/30/2016 — — 62,532,000 4.67%

$58.5MTermLoan–relatedparty(2) $ 11,085,750 $ 167,139 3/30/2021 10,329,185 8.00% — —

Total Debt $ 209,729,185 $ 220,732,000

Less:

Unamortizeddeferredfinancingcosts(3) $ 442,111 $ 510,401

Unamortizeddiscounton7%ConvertibleSeniorNotes 2,956,285 3,356,847

Long-term debt, net of deferred financing costs $ 206,330,789 $ 216,864,752 (1) Included in the Consolidated Balance Sheet as Line of Credit.(2) $47,414,250 of the $58.5M term loan is payable to CorEnergy under the same terms, and eliminates in consolidation.(3) A portion of the unamortized deferred financing costs, related to our revolving credit facilities, are included in Deferred Costs in the Assets section of the ConsolidatedBalance Sheets. See the next table for deferred financing costs included in the Asset section of the Consolidated Balance Sheets.

Deferred Financing Costs, net (1)

June 30, 2016 December 31, 2015

RegionsCreditFacilities $ 2,675,693 $ 2,975,476

PinedaleCreditFacility — 156,330

Total Deferred Debt Costs, net $ 2,675,693 $ 3,131,806(1) This is the portion of deferred financing costs which relate to a revolving credit facility and are not presented as a reduction toLong-term debt but rather as Deferred Costs in the Asset section of the Consolidated Balance Sheets.

Deferred Financing Cost Amortization Expense (1)


RegionsCreditFacilities $ 284,779 $ 178,714 $ 559,336 $ 355,208

PinedaleCreditFacility — 129,216 156,330 258,432

Total Deferred Debt Cost Amortization $ 284,779 $ 307,930 $ 715,666 $ 613,640(1) Amortization of deferred debt issuance costs is included in interest expense in the Consolidated Statements of Income.

TheremainingcontractualprincipalpaymentsasofJune30,2016,underourRegionsandPinedalecreditfacilitiesareasfollows:

Total Remaining Contractual Payments

Year RegionsRevolver

Regions TermLoan

Pinedale CreditFacility Total

2016 $ — $ 4,660,000 $ 334,278 $ 4,994,278

2017 — 6,460,000 668,556 7,128,556

2018 — 6,460,000 668,556 7,128,556

2019 44,000,000 23,820,000 668,556 68,488,556

2020 — — 668,556 668,556

Thereafter — — 7,320,683 7,320,683

Total $ 44,000,000 $ 41,400,000 $ 10,329,185 $ 95,729,185

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Regions Credit Facilities

OnMarch30,2016,theCompanydrew$44.0millionontheRegionsRevolverinconjunctionwiththerefinancingofthePinedaleCreditFacility.Seebelowforfurtherdetails.TheCompanynowhasapproximately$54.2millionofavailableborrowingbasecapacityontheRegionsRevolver.

Pinedale Credit Facility

OnDecember20,2012,PinedaleLPclosedona$70millionsecuredtermcreditfacility.OutstandingbalancesundertheoriginalfacilitygenerallyaccruedinterestatavariableannualrateequaltoLIBORplus3.25percent.ThiscreditfacilitywassecuredbythePinedaleLGSasset.Undertheoriginalagreement,PinedaleLPwasobligatedtopayallaccruedinterestmonthlyandwasfurtherobligatedtomakemonthlyprincipalpayments,whichbeganonMarch7,2014,intheamountof$294thousandor0.42percentoftheprincipalbalanceasofMarch1,2014.

ThecreditfacilityremainedineffectuntilDecember31,2015,withanoptiontoextendthroughDecember31,2016.AlthoughtheCompanyelectednottoextendthefacilityforanadditionalone-yearperiodwedidamendthefacilitytoextendthematuritydatetoMarch30,2016.Duringtheextensionperiod,thecompanymadeprincipalpaymentsof$3.2millionandthecreditfacilityboreinterestontheoutstandingprincipalamountatLIBORplus4.25percent.

On March 4, 2016, the Company obtained a consent from its lenders under the Regions Credit Facility, which permitted the Company to utilize the RegionsRevolvingCreditFacilitytorefinancetheCompany'sproratashareoftheremainingbalanceofthePinedalesecuredtermcreditfacility.OnMarch30,2016,theCompanyandPrudential ("theRefinancingLenders"), refinancedtheremaining$58.5millionprincipal balanceof the$70millioncredit facility (onaproratabasisequaltotheirrespectiveequityinterestsinPinedaleLP,withtheCompany’s81.05percentsharebeingapproximately$47.4million)andexecutedaseriesofagreementsassigningthecreditfacilitytoCorEnergyInfrastructureTrust,Inc.asAgentfortheRefinancingLenders.ThefacilitywasfurthermodifiedtoextendthematuritydatetoMarch30,2021;toincreasetheLIBORRatetothegreaterof(i)1.00percentand(ii)theone-monthLIBORrate;andtoincreasetheLIBORRateSpreadtosevenpercent(7.00percent)perannum.TheCompany'sportionofthedebtandinterestiseliminatedinconsolidationandPrudential'sportionofthedebtisshownasarelated-partyliability.TheCompanyalsoterminatedoneoftworelated$26.3millionderivativecontracts.

TheCompanyhasprovidedtoPrudentialaguaranteeagainstcertaininappropriateconductbyoronbehalfofPinedaleLPorus.Thecreditagreementcontains,among other restrictions, specific financial covenants including the maintenance of certain financial coverage ratios and a minimum net worth requirement.PinedaleLPwasincompliancewithallcovenantsunderthePinedaleCreditFacilityasofJune30,2016.

PinedaleLP'screditfacilitywiththeRefinancingLendersrequiresallleasepaymentsbyUltraWyomingtobemadetoalockboxaccountunderthecontrolofthecompanyasAgentandlimitsdistributionsbyPinedaleLPtotheCompany.DistributionsbyPinedaleLPtotheCompanyarepermittedtotheextentrequiredfortheCompanytomaintain its REITqualification, solongas Pinedale LP's obligations under thecredit facility havenot beenaccelerated followinganEvent ofDefault (as defined in the credit facility). However, Pinedale LP automatically entered into a Cash Control Period (as defined in the credit facility) with theRefinancingLendersupontheApril29,2016bankruptcyfilingbyUltraWyominganditsparentguarantor,UltraPetroleum.DuringaCashControlPeriod,theCompany as Agent may (and, upon the request of any lender, shall) sweep all funds for the repayment of accrued interest, scheduled principal payments andprincipalprepaymentsontheloans,inallcasestotheextentofsuchavailablefunds,untilsuchtimeastheCashControlPeriodhasterminatedortheUltraLease,has beenaffirmedbyUltra Wyomingin a lawful bankruptcy proceeding. For the three andsix months endedJune 30, 2016, pursuant to these additional cashsweep provisions, an additional $3.1 million was distributed (pro rata, based on ownership percentages) to the Refinancing Lenders as a reduction to theoutstandingprincipal. Thecredit facility alsorequires that Pinedale LPmaintain minimumnet worthlevels andcertain leverageratios, whichalongwithotherprovisionsofthecreditfacilitylimitcashdividendsandloanstotheCompany.AtJune30,2016,thenetassetsofPinedaleLPwere$140.8millionandPinedaleLPwasincompliancewithallofthefinancialcovenantsofthesecuredtermcreditfacility.

11. CONVERTIBLE DEBT

OnMay23,2016,theCompanyrepurchased$1millionofitsconvertiblebondsontheopenmarket.Thisresultedinthecompanywritingoffasmallportionoftheoriginal underwriter's discount and deferred debt costs, as well as recognizing a gain on extinguishment of debt of$72 thousandwhich is included in InterestExpenseintheConsolidatedStatementsofIncome.

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ThefollowingisasummaryoftheimpactofConvertibleNotesoninterestexpenseforthethreeandsixmonthsendedJune30,2016and2015,respectively:

Convertible Note Interest Expense For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

7%ConvertibleNotes $ 1,983,528 $ 44,722 $ 3,996,028 $ 44,722

DiscountAmortization 185,727 4,183 373,962 4,183

DeferredDebtIssuanceAmortization 12,703 197 24,958 197

Total $ 2,181,958 $ 49,102 $ 4,394,948 $ 49,102

The Convertible Notes were initially issued with an underwriters' discount of $3.7 millionwhich is being amortized over the life of the Convertible Notes.Includingtheimpactoftheconvertibledebtdiscountandrelateddeferreddebtissuancecosts,theeffectiveinterestrateontheConvertibleNotesisapproximately7.7percent,respectively,forthethreeandsixmonthsendedJune30,2016.

12. STOCKHOLDER'S EQUITY

REDEEMABLE PREFERRED STOCK

TheCompany'sauthorizedpreferredstockconsistsof10millionshareshavingaparvalueof$0.001pershare. OnJanuary27,2015,theCompanysold, inanunderwritten public offering, 2,250,000depositary shares, each representing 1/100thof a share of 7.375%Series A Cumulative Redeemable Preferred Stock("SeriesAPreferred").Pursuanttothisoffering,theCompanyissued22,500wholesharesofSeriesAPreferredandreceivednetcashproceedsofapproximately$54.2 million . The depositary shares pay an annual dividend of $1.84375 per share, equivalent to 7.375 percent of the $25.00 liquidation preference. ThedepositarysharesmayberedeemedonorafterJanuary27,2020,attheCompany’soption,inwholeorinpart,atthe$25.00liquidationpreferenceplusallaccruedandunpaiddividendsto,butnotincluding,thedateofredemption.Thedepositaryshareshavenostatedmaturity,arenotsubjecttoanysinkingfundormandatoryredemptionandarenotconvertibleintoanyothersecuritiesoftheCompanyexceptinconnectionwithcertainchangesofcontrol.Holdersofthedepositarysharesgenerallyhavenovotingrights,exceptforlimitedvotingrightsiftheCompanyfailstopaydividendsforsixormorequarters(whetherornotconsecutive)andincertainothercircumstances.ThedepositarysharesrepresentingtheSeriesAPreferredtradeontheNYSEundertheticker“CORRPrA."TheaggregateparvalueofthepreferredsharesatJune30,2016,is$23.SeeNote14,SubsequentEvents,forfurtherinformationregardingthedeclarationofadividendonthe7.375%SeriesACumulativeRedeemablePreferredStock.

COMMON STOCK

AsofJune30,2016,theCompanyhad11,869,828ofcommonsharesissuedandoutstanding.EffectiveDecember1,2015,theCompanycompletedaone-for-fivereversecommonstocksplit.Asaresult,everyfiveissuedandoutstandingsharesofcommonstockoftheCompanyconvertedintooneshareofcommonstock.Theparvalueofeachshareofcommonstockandthenumberofauthorizedsharesremainedunchanged.OnDecember31,2015,theCompany'sboardofdirector'sauthorizedasharerepurchaseprogramfortheCompanytobuyupto$10.0millionofitscommonstock.AsofJune30,2016thecompanyhadrepurchased90,613sharesforapproximately$2.0millionincash.TheCompanymayrepurchasesharesfromtimetotimethroughopenmarkettransactions,includingthroughblockpurchases, in privately negotiated transactions, or otherwise. The timing, manner, price, and amount of any repurchases are to be determined by seniormanagement,dependingonmarketpricesandotherconditions.Wearenotobligatedtorepurchaseanysharesofstockundertheprogramandmayterminatetheprogramatanytime.SeeNote14,SubsequentEvents,forfurtherinformationregardingthedeclarationofadividendonthecommonstock.

SHELF REGISTRATION

OnFebruary18,2016,wehadanewshelfregistrationstatementdeclaredeffectivebytheSEC,pursuanttowhichwemaypubliclyofferadditionaldebtorequitysecuritieswithanaggregateofferingpriceofupto$600million.

AsofJune30,2016,wehaveissued19,233sharesofcommonstockundertheCompany'sdividendreinvestmentplanpursuanttotheFebruary18,2016shelf,reducingavailabilitybyapproximately$332thousandtoapproximately$599.7million.

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13. EARNINGS PER SHARE

Basicearningspersharedataiscomputedbasedontheweightedaveragenumberofsharesofcommonstockoutstandingduringtheperiods.DilutedEPSdataiscomputedbasedontheweightedaveragenumberofsharesofcommonstockoutstanding,includingallpotentiallyissuablesharesofcommonstock.DilutedEPSforthesixmonthsendedJune30,2016excludestheimpacttoincomeandthenumberofsharesoutstandingfromtheconversionofthe7.00%ConvertibleSeniorNotes,becausesuchimpactwouldbeantidilutive.

Earnings Per Share For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

NetincomeattributabletoCorEnergystockholders $ 8,954,527 $ 4,185,138 $ 12,345,648 $ 8,271,766

Less:preferreddividendrequirements 1,037,109 1,037,109 2,074,218 1,774,609

Netincomeattributabletocommonstockholders $ 7,917,418 $ 3,148,029 $ 10,271,430 $ 6,497,157

Weightedaverageshares-basic 11,912,030 9,523,753 11,927,984 9,423,758

Basic earnings per share $ 0.66 $ 0.33 $ 0.86 $ 0.69

Netincomeattributabletocommonstockholders(fromabove) $ 7,917,418 $ 3,148,029 $ 10,271,430 $ 6,497,157

Add:Aftertaxeffectofconvertibleinterest(1) 2,181,958 44,722 — 44,722

Incomeattributablefordilutivesecurities $ 10,099,376 $ 3,192,751 $ 10,271,430 $ 6,541,879

Weightedaverageshares-diluted 15,383,892 9,863,413 11,927,984 9,594,526

Diluted earnings per share $ 0.66 $ 0.32 $ 0.86 $ 0.68(1) The amounts in this line included with interest are the amortization of deferred costs and the amortization of the discount on the

Convertible Notes. There is no income tax effect due to the fact that CorEnergy is a REIT.

14. SUBSEQUENT EVENTS

TheCompanyperformedanevaluationofsubsequenteventsthroughthedateoftheissuanceofthesefinancialstatementsanddeterminedthatnoadditionalitemsrequirerecognitionordisclosure,exceptforthefollowing:

Mowood/Omega Revolver

OnJuly28,2016theMowood/Omegarevolvinglineofcreditagreement("Mowood/OmegaRevolver")wasamendedtoextendthematuritydatetoJuly31,2017.Allothertermsoftheoriginalagreementremainedunchanged.

Common Stock Dividend Declaration

OnJuly27,2016,ourBoardofDirectorsdeclaredthe2016secondquarterdividendof$0.750pershareforCorEnergycommonstock.ThedividendispayableonAugust31,2016,toshareholdersofrecordonAugust17,2016.

Preferred Stock Dividend Declaration

OnJuly 27, 2016, our Board of Directors also declared a cash dividend of $0.4609375per depositary share for the Company’s 7.375%Series ACumulativeRedeemablePreferredStockforthequarterendingJune30,2016.ThepreferredstockdividendispayableonAugust31,2016toshareholdersofrecordonAugust17,2016.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ThefollowingdiscussionshouldbereadinconjunctionwiththeConsolidatedFinancialStatementsandNotestheretointhisreportonForm10-QofCorEnergyInfrastructure,Inc.(“theCompany”,“CorEnergy”,“we”or“us”).Theforward-lookingstatementsincludedinthisdiscussionandelsewhereinthisreportonForm10-Qinvolverisksanduncertainties,includinganticipatedfinancialperformance,businessprospects,industrytrends,shareholderreturns,performanceofleasesbytenants,performanceonloanstocustomers,andothermatters,whichreflectmanagement'sbestjudgmentbasedonfactorscurrentlyknown.See“CautionaryStatement Concerning Forward-Looking Statements” which is incorporated herein by reference. Actual results and experience could differ materially fromtheanticipated results and other expectations expressed in our forward-looking statements as a result of a number of factors, including but not limited to thosediscussedinItem1A-“RiskFactors”inourAnnualReportonForm10-KfortheyearendedDecember31,2015,filedwiththeSEConMarch14,2016andPartII,Item1A-"RiskFactors"inthisreportonForm10-Q.

BUSINESS OBJECTIVE

CorEnergyprimarilyownsassetsinthemidstreamanddownstreamU.S.energysectorsthatperformutility-likefunctions,suchaspipelines,storageterminals,andtransmissionanddistributionassets.Ourobjectiveistoprovidestockholderswithastableandgrowingcashdividend,supportedbylong-termcontractedrevenuefromoperatorsofourassets,primarilyundertriple-netparticipatingleases.Webelieveourleadershipteam’senergyandutilityexpertiseprovidesCorEnergywithacompetitiveadvantagetoownandacquireU.S.energyinfrastructureassetsinatax-efficient,transparentREIT.

Wealso may provide other types of capital, including loans secured by energy infrastructure assets. The assets we ownand seek to acquire include pipelines,storagetanks,transmissionlines,andgatheringsystems,amongothers.Theassetsareprimarilymission-critical,inthatutilizationoftheassetsisnecessaryforthebusinesstheoperatorsofthoseassetsseektoconductandtheirrentalpaymentsareanessentialoperatingexpense.Weacquireassetsthatwillenhancethestabilityofourdividendthroughdiversification,whileofferingthepotentialforlong-termdistributiongrowth.Thesesale-leasebackorrealpropertymortgagetransactionsprovidetheenergycompanywithasourceofcapitalthatisanalternativetosourcessuchascorporateborrowing,bondofferings,orequityofferings.

State of the Market

Accordingtocourtfilings,85NorthAmericanoilandgasproducershavefiledforbankruptcysincethebeginningof2015,43ofwhichfiledin2016(throughJune30).TheparentcompaniesoftwoofCorEnergy’slargesttenants,EnergyXXIandUltraPetroleum,havebeenamongthosecompaniesdeclaringbankruptcy.

BetweenApril1andJuly31,2016,CorEnergy’ssharepriceincreased48percentto$29.42.ThiscomparestotheAlerianMLPIndex(“AMZ”)whichwasup20percentandtheS&P500Index(“SPX”)whichincreasedfivepercentoverthesametimeperiod.CorEnergy,AMZ,andSPXhitlowpointsonFebruary11,2016of$10.90,$199.10,and$1,810.10,respectively.Thereboundsincethenwaslikelyinfluencedbyarecoveryintheoilandgasmarkets,whichinturnaffectsthehealthofEnergyXXIandUltraPetroleum.WTIcrudeoilpricesclimbedto$41.60perbarrelonJuly31,2016,andnaturalgaspricesroseto$2.88perMMBtu.Theseareincreasesof13%and47%betweenApril1andJuly31,respectively,butarelowerthanrecenthighsof$51.23perbarrelforWTIcrudeoil(onJune8)and$2.99perMMBtufornaturalgas(onJuly1).Forup-to-datecommodityprices,pleaserefertohttp://www.eia.gov/petroleum/gasdiesel/.

OnJune23,2016,theUnitedKingdomvotedtoleavetheEuropeanUnion.Thiscausedincreasedvolatilityintheglobalmarkets,whichmaycontinue.CorEnergydoesnotexpectitsbusinessoperationstobedirectlyaffectedbythisdecision,butanyeffectsontheglobaleconomy,marketsandcommoditypricescoulddriveCorEnergy’ssharepriceupordown.

Aswithotherplayersintherealestatesector,oursharepricecanbepositivelyornegativelyaffectedbythedecisions,ormarketperceptionofthedecisions,oftheFederal Reserve to raise, maintain, or lower interest rates. In the most recent Federal Reserve meeting on July 27, 2016, interest rates were left unchanged.Nonetheless,theFederalReserveindicateditmayraiseratesinupcomingquartersandthismayhaveaslightlyadverseeffectonourshareprice.

OnSeptember1,2016,RealEstatewillbecomeaseparatesectorintheGlobalIndustryClassificationStandard("GICS").Analystsandnewssourcesexpectthatthiswillbenefitrealestatecompanies,whichintheU.S.consistprimarilyofREITs,ascapitalwillflowintothesectorinordertomaintainbalancedportfolios.Additionally, market exposure and understanding of REIT structures and their reporting standards are expected to increase as a result of the new GICScategorization.ItispossiblethatCorEnergysharesmayexperiencesomebenefitfromcapitalflowsintotheREITsectorduetothenewclassification.

Energycompaniesarefindinganumberofwaystoaddresscapitalconstraints,includingcapitalraises(frequentlyintheformofpreferredshares),jointventures,andassetsales.Webelievethatourbusinessofferscompaniesanalternativesourceofcapitalandweremainindiscussionswithcompanieswhodonotexpecttofilebankruptcy,buthaveneedsforcapitaltoexploitpotential

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oilandgasreserves.Ourteamcontinuestoassesstheseopportunitiesforassetswhichfitourunderwritingcriteriaandwillprovidealongtermbenefittocurrentshareholdersthroughgrowthanddiversification.

Basis of Presentation

TheconsolidatedfinancialstatementsincludeCorEnergyInfrastructureTrust,Inc.,asofJune30,2016,anditsdirectandindirectwholly-ownedsubsidiaries.Allsignificantintercompanyaccountsandtransactionshavebeeneliminatedinconsolidation.

RESULTS OF OPERATIONS

WebelievetheLeaseRevenue,SecurityDistributions,FinancingRevenue,andOperatingResultsoverviewpresentedbelowprovidesinvestorswithinformationthatwillassisttheminanalyzingtheoperatingperformanceofourleasedassets,financingnotesreceivable,otherequitysecurities,andoperatingentities.Asitpertainstootherequitysecurities,theCompanybelievesthatnetdistributionsreceivedareindicativeoftheoperatingperformanceoftheassets.Accordingly,wehaveincludedtheminEBITDA,resultinginanadjustedEBITDAmetric.

ThefollowingResultsofOperationsanalysisincludesLeaseRevenueandDepreciationExpenserelatedtothePNMLeaseAgreementandtheEIPleasedasset,whichwassoldonApril1,2015,forthesixmonthsendedJune30,2015.

The following is a comparison of lease revenues, security distributions, financing revenue, operating results, and expenses for the three and six months ended June30, 2016 and 2015 :


June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015Lease Revenue, Security Distributions, Financing Revenue,and Operating Results

Leases:

Leaserevenue $ 16,996,072 $ 6,799,879 $ 33,992,144 $ 14,135,980

OtherEquitySecurities:

Netcashdistributionsreceived 215,139 218,557 474,873 467,506

Financing:

Financingrevenue — 668,904 162,344 1,329,296

Operations:

Transportationanddistributionrevenue(1) 5,064,680 5,212,887 10,164,131 11,204,277

Transportationanddistributionexpense(2) (1,378,306) (1,841,983) (2,740,631) (4,288,281)NetOperations(excludingdepreciation,amortization,andAROaccretion) 3,686,374 3,370,904 7,423,500 6,915,996

Total Lease Revenue, Security Distributions, FinancingRevenue, and Operating Results $ 20,897,585 $ 11,058,244 $ 42,052,861 $ 22,848,778

Generalandadministrative (2,773,240) (1,905,329) (6,063,092) (4,473,848)

Non-ControllingInterestattributabletoAdjustedEBITDAItems (962,763) (971,678) (1,907,290) (1,941,665)

Adjusted EBITDA $ 17,161,582 $ 8,181,237 $ 34,082,479 $ 16,433,265 (1) MoGas and Omega revenues have been combined and are presented net of Omega's natural gas and propane costs subsequent to the new contractwith the DOD executed on January 28, 2016, effective February 1, 2016. In accordance with GAAP, Omega's historical Sales revenue and Cost of salesfor the three and six months ended June 30, 2015, are presented separately, on a gross basis, in the Consolidated Statements of Income andComprehensive Income in this quarterly report on Form 10-Q. For ease of comparison in this results of operations discussion, Omega's historical Salesrevenue, Cost of sales, and Operating expenses for the three and six months ended June 30, 2016 and 2015, are presented on a gross basis and areincluded in the Transportation and distribution lines in this table.(2) MoGas' transportation, maintenance, and administrative expenses and Omega's distribution and operating expenses and cost of sales on non-DODcustomers have been combined subsequent to the new contract with the DOD executed on January 28, 2016.

Lease Revenue, Security Distributions, Financing Revenue, and Operating Results

Ouroperatingperformancewasderivedprimarilyfromleasesofrealpropertyassets,distributionsfromourremainingportfolioofequityinvestments,financingrevenuefromourloanagreements,andtheoperatingresultsofoursubsidiaries.Totalleaserevenue,securitydistributions,financingrevenue,andoperatingresultsgenerated by our investments for the three and six months ended June30, 2016 , increased$9.8 million and$19.2 million , respectively. The increases wereprimarilyattributabletotheGIGSlease,whichaddedleaserevenuetotaling$10.2millionand$20.3million,respectively,tothecurrent-yearperiods.

ForthesixmonthsendedJune30,2016,leaserevenuealsoincreasedforthePortlandTerminalFacilityby$144thousandversustheprior-yearperiodrelatedtocompletionoftheplannedconstructionprojectsinNovember2015.Theyear-to-dateincreaseinleaserevenuealsoincludeda$20thousandincreaseduetoannualCPIescalationspursuanttothePinedaleLeaseAgreement.

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Theseincreaseswerepartiallyoffsetbya$638thousanddeclineinleaserevenuesduetotheterminationofthePNMLeaseAgreementonApril1,2015.

ForthethreemonthsendedJune30,2016and2015,MoGascontributed$2.8millionand$2.5million,respectively,toNetOperations(excludingdepreciationand amortization). Transportation revenues totaled $3.6 million for the current quarter and $3.5 million for the prior-year period. Transportation costs,maintenance,andgeneralandadministrativeexpenseswereapproximately$810thousandand$1.1million,respectively.ForthesixmonthsendedJune30,2016and2015,MoGascontributed$5.6millionand$5.1million,respectively,toNetOperations(excludingdepreciationandamortization).Transportationrevenuestotaled approximately$7.2 million for the six months ended June 30, 2016and 2015, while transportation costs, maintenance, and general and administrativeexpenseswereapproximately$1.6millionand$2.1million,respectively.ThedeclineinMoGas'generalandadministrativeexpensesversustheprior-yearperiodswasdueto legal fees incurredin the first half of 2015related to obtainingapproval for a plannedsale-leaseback transaction whichwassubmitted to FERCinNovember2015,andsubsequentlyapprovedinJune2016.

For the three months ended June 30, 2016and 2015 , our subsidiary, Omega, contributed$924 thousandand$900 thousand , respectively, to Net Operations(excluding depreciation and amortization) from its natural gas operations. For the six months ended June 30, 2016 and 2015, Omega's contribution was $1.8millionand$1.8million,respectively.Omega'scontributionrepresentsthecontractrevenuesrelatedtodistributionofnaturalgasonourpipelineafterdeductingdistributionexpenses(excludingdepreciationandamortization)fortherespectiveperiods.

OurfinancingrevenuesarederivedfromourloanstoBBWSandSWD.AsofDecember31,2015,theCompanyhadrecordedalossfortheentirebalanceoftheBlackBisonloans.Duringthefirstquarterof2016,ourloantoSWDbecamedelinquent,atwhichtimetheCompanyrecordedaloanlossreserveandplacedtheFour Wood loan on non-accrual basis, which accounts for the decline in revenues from prior year. See Note 4, Financing Notes Receivable , for additionalinformationontheBlackBisonfinancingnotesandNote4,FinancingNotesReceivableformoreinformationontheFourWoodloans.

General and Administrative

TotalgeneralandadministrativeexpensesfromoperationsforthethreemonthsendedJune30,2016and2015,were$2.8millionand$1.9million,respectively.TotalgeneralandadministrativeexpensesfromoperationsforthesixmonthsendedJune30,2016and2015,were$6.1millionand$4.5million,respectively.Themostsignificantcomponentsofthevariancefromtheprior-yearperiodsareoutlinedinthefollowingtableandexplainedbelow:


Managementfees $ 1,618,530 $ 1,167,522 $ 3,456,696 $ 2,339,496

Acquisitionandprofessionalfees 644,628 416,591 1,531,649 1,658,546

Otherexpenses 510,082 321,216 1,074,747 475,806

Total $ 2,773,240 $ 1,905,329 $ 6,063,092 $ 4,473,848

Management fees are directly proportional to the Company's asset base. As such, the 2016 increases versus the prior-year periods are directly related to theacquisitionofGIGS.TheGIGS-relatedincreaseoverprioryearwaspartiallyoffsetbycertainreductionsintheassetbase,suchasthesaleofEIPinApril2015,andthewaiverofManagementfeesbythemanagementcompanyonthenon-performingfinancingnotes.

TheManagementAgreementincludesanincentivefee,calculatedasapercentageofcommonstockdividendspaidinexcessofapredeterminedthreshold.InJune2015, the Company issued an additional 2.6 million shares of common stock to partially fund the acquisition of GIGS and subsequently raised its quarterlycommonstockdividendto$0.75pershareonJanuary26,2016,thusincreasingthetotalcommonstockdividendspaid,forthesixmonthsendedJune30,2016,by$5.5million.TheincreaseincommonstockdividendspaidresultedinanincreaseinincentivefeespaidtotheManagerof$79thousandforthesixmonthsendedJune30,2016ascomparedtotheprioryear.SeeNote8,ManagementAgreement,foradditionalinformation.

AcquisitionandprofessionalfeesforthethreemonthsendedJune30,2016and2015,increased$228thousandversustheprior-yearperiod.ForthesixmonthsendedJune30,2016and2015,acquisitionandprofessionalfeesdecreased$127thousandto$1.5millionfrom$1.7million,respectively.

Generally, we expect asset acquisition expenses to be repaid over time from income generated by acquisitions. However, any particular period may reflectsignificantexpensesarisingfromthirdpartylegal,engineering,andconsultingfeesthatareincurredintheearlytomid-stagesofduediligence.Recently,duetotheuncertaintyintheenergyindustryandthenumberofenergycompaniesgoingthroughthebankruptcyprocess,wehaveexperiencedlowerassetacquisitionscosts.Acquisitionexpensefor

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thesixmonthsendedJune30,2016,declined$709thousandcomparedtotheprior-yearperiodprimarilybecausetheCompanypursuedopportunitiesduringthefirstthreemonthsof2015whichwerenotcompleted.

Professionalfeesfor thethree andsixmonthsendedJune 30, 2016and 2015 increased$302thousandand$582thousand, respectively, versustheprior-yearperiods. These increases are primarily due to legal fees associated with the assignment and modification of the Pinedale Credit Facility. Additional expensesincurred in the monitoring of our assets at Pinedale and GIGS, the Black Bison foreclosure and sale activities, and valuation of the Four Woods REIT Loancollateralalsocontributedtotheincrease.

Other expenses for the three and six months ended June 30, 2016 and 2015 increased$189 thousandand$599 thousand , respectively, versus the prior-yearperiods.TogetherwithvaluationandothercostsassociatedwiththeBlackBisonforeclosure,theincreaseswerepredominantlyrelatedtotherecordingofBlackBison'soperatingexpensesbetweenthedateweforeclosedandthesubsequentsale.Wealsoincurredadditionalexpensesinconnectionwiththeredesignofourwebsite,travelrelatedtomonitoringofourassetsandattendanceatindustryconferences,andhigherprintingandmailingexpensesassociatedwiththeCompany'sJanuary2016FormS-3RegistrationStatementandourFebruary2016ProspectusSupplement.

Non-Controlling Interest Attributable to Adjusted EBITDA Items

Based on Prudential's 18.95 percent ownership interest in Pinedale LP, the Company is required to make a further adjustment to the adjusted EBITDAitemspresented above to exclude the portion attributable to Prudential's non-controlling interest. For the three months ended June 30, 2016 and 2015 ,Prudential'sinterestintheseitemstotaled$963thousandand$972thousand,respectively.ForthesixmonthsendedJune30,2016and2015,Prudential'sinterestintheseitemstotaled$1.9million.

Adjusted EBITDA

AdjustedEBITDAattributabletoCorEnergyStockholdersforthethreemonthsendedJune30,2016and2015was$17.2millionand$8.2million,respectively.ForthesixmonthsendedJune30,2016and2015,adjustedEBITDAattributabletoCorEnergyStockholderswas$34.1millionascomparedto$16.4millionfortheprior-yearperiod.Asnotedabove,theincreasesinadjustedEBITDAareprimarilyassociatedwiththeacquisitionofGIGSinJune2015,partiallyoffsetbyreducedrevenuesrelatedtoourfinancingagreements.

The following table presents a reconciliation of Adjusted EBITDA to Income Attributable to Common Stockholders as reported in the consolidated statements ofincome and comprehensive income:


June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015Adjusted EBITDA $ 17,161,582 $ 8,181,237 $ 34,082,479 $ 16,433,265OtherAdjustments:Distributionsanddividendsreceivedinpriorperiodpreviouslydeemedareturnofcapital(recordedasacostreduction)andreclassifiedasincomeinasubsequentperiod(1) — — 117,004 371,323Netrealizedandunrealizedgain(loss)onsecurities,noncashportion 1,198,695 18,238 (431,222) 438,172Depreciation,amortization,andAROaccretion (5,737,025) (3,495,986) (11,033,843) (7,544,818)Interestexpense,net (3,540,812) (1,126,888) (7,466,821) (2,274,160)

Provisionforloanlosses (369,278) — (5,014,466) —Non-controllinginterestattributabletodepreciation,amortization,andinterestexpense(2) 651,803 559,674 1,247,828 1,119,486Incometaxbenefit(expense) (410,438) 48,863 844,688 (271,502)Preferreddividendrequirements (1,037,109) (1,037,109) (2,074,218) (1,774,609)

Income Attributable to Common Stockholders $ 7,917,418 $ 3,148,029 $ 10,271,429 $ 6,497,157(1) We characterize distributions received from private investments estimated based on prior year activity. After receiving the K-1s, which depict theCompany's share of income and losses from the investment in the security, previously unrealized gains can be reclassified as dividend income.(2) ARO accretion expense has no impact on non-controlling interest.

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Net Distributions and Dividends Recorded as Income

Thefollowingtablesummarizesthebreakoutofnetdistributionsanddividendsreportedasincomeontheincomestatement.ThetablebeginswiththegrosscashdistributionsanddividendincomereceivedfromourinvestmentsecuritiesduringthesixmonthsendedJune30,2016and2015.Thisamountisincreasedbycashdistributionsreceivedinapriorperiodthatwere,atthetime,deemedareturnofcapitalandhavebeenreclassifiedduringthecurrentperiodasincome.Finally,areductionisshownforcashdistributionsreceivedinthecurrentperiodthataredeemedareturnofcapitaland,assuch,arenotincludedinincomereceivedfrominvestment securities. The portion of the distributions that are deemed to be return of capital in any period are based on estimates made at the time suchdistributionsarereceived.Theseestimatesmaysubsequentlyberevisedbasedoninformationreceivedfromtheportfoliocompanyaftertheirtaxreportingperiodsareconcluded,astheactualcharacterofthesedistributionsisnotknownuntilafterourfiscalyearend.

Net Distributions and Dividends Recorded as Income For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015Grossdistributionsanddividendsreceivedfrominvestmentsecurities $ 215,139 $ 218,557 $ 474,873 $ 467,506

Add: Distributionsanddividendsreceivedinpriorperiodpreviouslydeemedareturnofcapital(recordedasacostreduction)andreclassifiedasincomeinasubsequentperiod — — 117,004 371,323

Less: Distributionsanddividendsreceivedincurrentperioddeemedareturnofcapitalandnotrecordedasincome(recordedasacostreduction)inthecurrentperiod 970 25,147 2,135 55,011

Net distributions and dividends recorded as income $ 214,169 $ 193,410 $ 589,742 $ 783,818

ForthethreemonthsendedJune30,2016and2015,theincreaseinnetdistributionsanddividendsrecordedasincomeversustheprior-yearperiodisduetoachangeinthecharacterizationofourdistributionsreceivedfromLightfoot.Intheprioryear,ahigherpercentageofthecashwereceivedwasdeemedreturnofcapital,whereasinthecurrentyear,nearlyallofthedistributionsreceivedareconsidereddividendincome.ForthesixmonthsendedJune30,2016and2015,the$194 thousand decrease in net distributions and dividends recorded as income versus the prior-year period is primarily due to a $254 thousand decrease inadjustmentsrecordedinthefirstquarterofeachyeartoreclassifypreviouslyunrealizedgainsasdividendincomeuponthereceiptoftheannualK-1s,whichdepicttheCompany'sshareofincomeandlossesfromtheinvestmentinthesecurity.ThisdecreasewasoffsetbyadeclineinhowmuchofthecashdistributionsfromourinvestmentinLightfootwereconsideredareturnofcapitalversuscurrentincomein2016.

Net Realized and Unrealized Gain (Loss) on Securities

For the three months ended June 30, 2016 and 2015, the $1.2 million increase in the noncash portion of net realized and unrealized gains from other equitysecuritiesversustheprior-yearperiodisprimarilyduetoacombinationof:(i)a$1.5millionincreaseinunrealizedgainsduetofluctuationsinthevaluationofLightfoot;minus(ii)a$282thousanddecreaseinunrealizedgainonthe18-monthescrowassociatedwiththesaleofVantaCorerecognizedduringtheprior-yearperiod;plus(iii)a$10thousandchangeinthevaluationoftheBlackBisonwarrant.

ForthesixmonthsendedJune30,2016and2015,the$869thousanddecreaseinnoncashportionofnetrealizedandunrealizedlossesfromotherequitysecuritiesversustheprior-yearperiodisprimarilyduetoacombinationof:(i)a$1.1milliondecreaseinunrealizedgainsduetofluctuationsinthevaluationofLightfoot;minus(ii)a$240thousandchangeinthevaluationoftheBlackBisonwarrant; plus(iii) a$239thousanddecreaseinunrealizedgainonthe18-monthescrowassociatedwiththesaleofVantaCorerecognizedduringtheprior-yearperiod;minus(iv)a$254thousanddecreaseinadjustmentsrecordedinthefirstquarterofeachyeartoreclassifypreviouslyunrealizedgainsasdividendincomeuponthereceiptoftheannualK-1s,whichdepicttheCompany'sshareofincomeandlossesfromtheinvestmentinthesecurity.

ThedecreaseinvaluationofLightfootisduetoadecreaseinthepublicsharepriceofArcLogistics(ARCX)andadecreaseinthevalueofGulfLNG.ARCXshare price at June 30, 2016 was $13.00/share, a decrease of $4.56/share from June 30, 2015. The decrease in Gulf LNGis due to an increase in the marketdiscountrateandadecreaseinthemarketgrowthrate,bothresultinginalowervaluation.

Depreciation, Amortization, and ARO Accretion

Depreciation,amortization,andAROaccretionexpenseforthethreemonthsendedJune30,2016and2015increased$2.2millionascomparedtotheprior-yearperiod.ForthesixmonthsendedJune30,2016and2015,depreciation,amortization,andARO

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accretion expenses increased$3.5millionas comparedto the prior-year period. Theincreases are primarily attributable to the acquisition of the GIGSin June2015,partiallyoffsetbyadecreaseindepreciationexpenseduetotheterminationofthePNMLeaseAgreement.PleaserefertoNote3,LeasedPropertiesAndLeases,foradditionaldiscussionofthePNMPurchaseAgreementanditseffectsontheconsolidatedfinancialstatementsincludedinthisquarterlyreportonForm10-Q.

Interest Expense

ForthethreemonthsendedJune30,2016and2015,interestexpensetotaledapproximately$3.5millionforthecurrent-yearperiodversus$1.1millionfortheprior-year period. The$2.4millionincrease is attributable to the debt incurred in connection with the June 30, 2015GIGSacquisition, consisting of the $115millionin7%ConvertibleSeniorNotesandthe$45milliontermloanwithRegionsBank.

ForthesixmonthsendedJune30,2016,interestexpensewasapproximately$7.5millionascomparedto$2.3millionfortheprior-yearperiod.Theyear-to-dateincrease is attributable to the debt incurred in connection with the acquisition of GIGS. Theconvertible notes accounted for approximately$4.4millionoftheincreasewhiletheCompany's$45milliondrawontheRegionsTermNoteaccountedforapproximately$786thousandoftheincrease.

Non-Controlling Interest Attributable to Depreciation, Amortization, ARO Accretion, and Interest Expense

DuetoPrudential's18.95percentownershipinterestinPinedaleLP,theCompanymustmakeadjustmentsfornon-controllinginterests.Prudential'sproportionateshareofdepreciation,amortization,AROaccretion,andinterestexpenseincreased$92thousandand$128thousand,forthethreeandsixmonthsendedJune30,2016and2015,respectively.TheincreaseisattributabletointerestandrelatedcostsreportedasinterestexpenseassociatedwiththeamendmentandmodificationofthePinedaleCreditFacility.

Net Income Attributable to CorEnergy Stockholders

NetincomeattributabletoCorEnergystockholderswas$9.0millionforthethreemonthsendedJune30,2016,ascomparedto$4.2millionfortheprior-yearperiod.Afterdeducting$1.0millionfortheportionofpreferreddividendsthatareallocabletothecurrentperiod,netincomeattributabletocommonstockholderswas$7.9million,or$0.66perbasiccommonshareand$0.64perdilutedcommonshare.ForthesixmonthsendedJune30,2016,netincomeattributabletoCorEnergystockholders was$12.3 million , as compared to$8.3 million , for the prior-year period. After deducting$2.1 million for the portion of preferreddividendsthat areallocabletothecurrentperiods, netincomeattributabletocommonstockholderswas$10.3million,or$0.86perbasicanddilutedcommonshareascomparedto$6.5million,or$0.69perbasicanddilutedcommonshare,fortheprior-yearperiod.

Common Equity Attributable to CorEnergy Shareholders per Share

Asof June30, 2016 , our commonequity decreased by approximately$9.5millionto $352.3millionfrom$361.8millionasofDecember 31, 2015 .Thisdecreaseprincipallyconsistsof:(i)dividendspaidtoourshareholdersofapproximately$20.0million;minus(ii)netincomeattributabletoCorEnergycommonstockholders of approximately $12.3 million ; plus (iii)$332 thousandof dividends reinvested under the DRIPplan; minus (iv) a$208 thousanddecreaseinaccumulatedothercomprehensiveincomeassociatedwithourhedgedderivativeassets.Thetablebelowdoesnotreflectnon-controllinginterestequity.

Book Value Per ShareAnalysis of Equity June 30, 2016 December 31, 2015

SeriesACumulativeRedeemablePreferredStock7.375%,$56,250,000liquidationpreference($2,500pershare,$0.001parvalue),10,000,000authorized;22,500issuedandoutstandingasofJune30,2016,andDecember31,2015 $ 56,250,000 $ 56,250,000Capitalstock,non-convertible,$0.001parvalue;11,869,828and11,939,697sharesissuedandoutstandingatJune30,2016,andDecember31,2015(100,000,000sharesauthorized) 11,870 11,940


Accumulatedothercomprehensiveincome (17,274) 190,797

Total CorEnergy Stockholders' Equity 408,515,400 418,034,244

Subtract:7.375%SeriesAcumulativeredeemablepreferredstock (56,250,000) (56,250,000)

Total CorEnergy Common Equity $ 352,265,400 $ 361,784,244

Commonsharesoutstanding 11,869,828 11,939,697

BookValueperCommonShare $ 29.68 $ 30.30

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NAREIT FFO

FFOisawidelyusedmeasureoftheoperatingperformanceofrealestatecompaniesthatsupplementsnetincome(loss)determinedinaccordancewithGAAP.AsdefinedbytheNationalAssociationofRealEstateInvestmentTrusts,NAREITFFOrepresentsnetincome(computedinaccordancewithGAAP),excludinggains(orlosses)fromsalesofdepreciableoperatingproperty,impairmentlossesofdepreciableproperties,realestate-relateddepreciationandamortization(excludingamortizationofdeferredfinancingcostsorloanoriginationcosts),andafteradjustmentsforunconsolidatedpartnershipsandnon-controllinginterests.Adjustmentsfornon-controllinginterestsarecalculatedonthesamebasis.WedefineFFOattributabletocommonstockholdersasdefinedabovebyNAREITlessdividendsonpreferred stock. Our method of calculating FFOattributable to commonshareholders may differ frommethods used by other REITs and, as such, may not becomparable.

FFO ADJUSTED FOR SECURITIES INVESTMENTS (FFO)

Due to the legacy investments that we hold, we have also historically presented a measure of FFO, to which we refer herein as FFO Adjusted for SecuritiesInvestments which is derived by further adjusting NAREIT FFO for distributions received from investment securities, income tax expense (benefit) frominvestmentsecurities,netdistributionsanddividendincome,andnetrealizedandunrealizedgainorlossonotherequitysecurities.

WepresentNAREITFFOandFFOAdjustedforSecuritiesInvestmentsbecauseweconsideritanimportantsupplementalmeasureofouroperatingperformanceandbelievethatitisfrequentlyusedbysecuritiesanalysts,investors,andotherinterestedpartiesintheevaluationofREITs,manyofwhichpresentFFOwhenreportingtheirresults.FFOisakeymeasureusedbytheCompanyinassessingperformanceandinmakingresourceallocationdecisions.

BothNAREITFFOandFFOAdjustedforSecuritiesInvestmentsareintendedtoexcludeGAAPhistoricalcostdepreciationandamortizationofrealestateandrelatedassets,whichassumesthatthevalueofrealestatediminishesratablyovertime.Historically,however,realestatevalueshaverisenorfallenwithmarketconditions, andthat mayalsobethecasewiththeenergyinfrastructureassetsinwhichweinvest. NAREITFFOandFFOAdjustedforSecuritiesInvestmentsexclude depreciation and amortization unique to real estate and gains and losses from property dispositions and extraordinary items. As such, it provides aperformancemeasurethatprovidesaperspectivenotimmediatelyapparentfromnetincomewhencomparedtoprior-yearperiods.Thesemetricsreflecttheimpacttooperationsfromtrendsinbaseandparticipatingrents,companyoperatingcosts,developmentactivities,andinterestcosts.

WecalculateNAREITFFOinaccordancewithstandardsestablishedbytheBoardofGovernorsoftheNationalAssociationofRealEstateInvestmentTrustsinitsMarch 1995 White Paper (as amended in November 1999 and April 2002) and FFO Adjusted for Securities Investment as NAREIT FFO with additionaladjustments described above due to our legacy investments. This may differ from the methodology for calculating FFO utilized by other equity REITs and,accordingly may not be comparable to such other REITs. NAREIT FFOand FFOAdjusted for Securities Investments do not represent amounts available formanagement's discretionary use because of needed capital for replacement or expansion, debt service obligations, or other commitments and uncertainties.NAREITFFOandFFOAdjustedforSecuritiesInvestments, ashistoricallyreportedbytheCompany,shouldnotbeconsideredasanalternativetonetincome(computed in accordance with GAAP), as an indicator of our financial performance, or to cash flow from operating activities (computed in accordance withGAAP), as an indicator of our liquidity, or as an indicator of funds available for our cash needs, including our ability to make distributions or to service ourindebtedness.

AFFO

ManagementusesAFFOasameasureoflong-termsustainableoperationalperformance.AFFOinexcessofdividendsisusedfordebtrepayment,reinvestments,fundingourAROliability,orothercommitmentsanduncertaintieswhicharenecessarytosustainourdividendoverthelongterm.AFFOshouldnotbeconsideredasanalternativetonetincome(computedinaccordancewithGAAP),asanindicatorofourfinancialperformance,orasanalternativetocashflowfromoperatingactivities(computedinaccordancewithGAAP),asanindicatorofourliquidity,orasanindicatoroffundsavailableforourcashneeds,includingourabilitytomakedistributionsorserviceourindebtedness.

Forcompleteness,thefollowingtablesetsforthareconciliationofournetincomeasdeterminedinaccordancewithGAAPandourcalculationsofNAREITFFO,FFOAdjustedforSecuritiesInvestments,andAFFOforthethreeandsixmonthsendedJune30,2016and2015.AFFOisasupplemental,non-GAAPfinancialmeasure whichwedefine as FFOAdjusted for Securities Investment plus provision for loanlosses, net of tax, transaction costs, amortization of debt issuancecosts,amortizationofdeferredleasecosts,accretionofassetretirementobligation,incometaxexpense(benefit)unrelatedtosecuritiesinvestmentsandprovisionfor loan losses, above-market rent, noncash costs associated with derivative instruments, and certain costs of a nonrecurring nature, less maintenance, capitalexpenditures(ifany),amortizationofdebtpremium,andotheradjustmentsasdeemedappropriatebyManagement.Alsopresentedisinformationregardingtheweighted-averagenumberofsharesofourcommonstockoutstandingusedforthecomputationofpersharedata:

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NAREIT FFO, FFO Adjusted for Securities Investment, and AFFO Reconciliation


June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015Net Income attributable to CorEnergy Stockholders $ 8,954,527 $ 4,185,138 $ 12,345,648 $ 8,271,766Less:

PreferredDividendRequirements 1,037,109 1,037,109 2,074,218 1,774,609Net Income attributable to Common Stockholders $ 7,917,418 $ 3,148,029 $ 10,271,430 $ 6,497,157Add:

Depreciation 5,539,667 3,480,644 10,629,420 7,514,134Less:

Non-ControllingInterestattributabletoNAREITFFOreconcilingitems 411,455 411,455 822,909 822,909NAREIT funds from operations (NAREIT FFO) $ 13,045,630 $ 6,217,218 $ 20,077,941 $ 13,188,382Add:

Distributionsreceivedfrominvestmentsecurities 215,139 218,557 474,873 467,506

Incometaxexpense(benefit)frominvestmentsecurities 533,765 88,233 58,128 501,097Less:

Netdistributionsanddividendincome 214,169 193,410 589,742 783,818Netrealizedandunrealizedgain(loss)onotherequitysecurities 1,199,665 43,385 (429,087) 493,183

Funds from operations adjusted for securities investments (FFO) $ 12,380,700 $ 6,287,213 $ 20,450,287 $ 12,879,984Add:

Provisionforloanlosses,netoftax 369,278 — 4,409,359 —Transactioncosts 1,000 74,551 37,915 747,298Amortizationofdebtissuancecosts 470,506 307,930 1,087,603 613,640Amortizationofdeferredleasecosts 22,983 15,342 45,966 30,684Accretionofassetretirementobligation 174,375 — 358,457 —

Incometaxexpense(benefit) (123,327) (137,096) (297,709) (229,595)Amortizationofabovemarketleases — — — 72,987Unrealized(gain)lossassociatedwithderivativeinstruments 33,820 (17,649) 57,695 (34,529)

Less:EIPLeaseAdjustment(1) — — — 542,809Non-ControllingInterestattributabletoAFFOreconcilingitems 9,064 22,227 45,868 45,511

Adjusted funds from operations (AFFO) $ 13,320,271 $ 6,508,064 $ 26,103,705 $ 13,492,149

WeightedAverageSharesofCommonStockOutstanding:Basic 11,912,030 9,523,753 11,927,984 9,423,758Diluted 15,396,879 9,863,413 15,406,339 9,594,526

NAREIT FFO attributable to Common Stockholders

Basic $ 1.10 $ 0.65 $ 1.68 $ 1.40

Diluted $ 0.99 $ 0.63 $ 1.59 $ 1.38

FFO attributable to Common Stockholders

Basic $ 1.04 $ 0.66 $ 1.71 $ 1.37

Diluted $ 0.95 $ 0.64 $ 1.61 $ 1.35

AFFO attributable to Common Stockholders

Basic $ 1.12 $ 0.68 $ 2.19 $ 1.43

Diluted $ 1.01 $ 0.66 $ 1.98 $ 1.41(1) Based on the economic return to CorEnergy resulting from the sale of our 40 percent undivided interest in EIP, we determined that it was appropriate to eliminate theportion of EIP lease income attributable to return of capital, as a means to more accurately reflect the EIP lease revenue contribution to CorEnergy-sustainable AFFO.CorEnergy believes that the portion of the EIP lease revenue attributable to return of capital, unless adjusted, overstates CorEnergy's distribution-paying capabilities and is notrepresentative of sustainable EIP income over the life of the lease. The Company completed the sale of EIP on April 1, 2015.

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FEDERAL AND STATE INCOME TAXATION

In2013wequalified,andinMarch2014elected(effectiveasofJanuary1,2013),tobetreatedasaREITforfederalincometaxpurposes(whichwerefertoasthe“REITElection").BecausecertainofourassetsmaynotproduceREIT-qualifyingincomeorbetreatedasinterestsinrealproperty,thoseassetsareheldinwholly-ownedTRSsinordertolimitthepotentialthatsuchassetsandincomecouldpreventusfromqualifyingasaREIT.

Fortheyearsendedin2012andbefore, thedistributionswemadetoourstockholdersfromourearningsandprofits weretreatedasqualifieddividendincome("QDI")andreturnofcapital.QDIistaxedtoourindividualshareholdersatthemaximumrateforlong-termcapitalgains,whichthroughtaxyear2012was15percentandbeginningintaxyear2013is20percent.TheCompanyelectedtobetaxedasaREITfor2013andsubsequentyearsratherthanaCcorporationandgenerallywillnotpayfederalincometaxontaxableincomeoftheREITthatisdistributedtoourstockholders.AsaREIT,ourdistributionsfromearningsandprofitswillbetreatedasordinaryincomeandareturnofcapital,andgenerallywillnotqualifyasQDI.TotheextentthattheREIThadaccumulatedCcorporationearnings andprofits fromtheperiods prior to 2013, wedistributed suchearnings andprofits in 2013. Aportionof our normal distributions in 2013havebeencharacterizedforfederalincometaxpurposesasadistributionofthoseearningsandprofitsfromnon-REITyearsandhavebeentreatedasQDI.Inaddition,totheextentwereceivetaxabledistributionsfromourTRSs,ortheREITreceiveddistributionsofCcorporationearningsandprofits,suchportionofourdistributionwillbetreatedasQDI.

AsaREIT,theCompanyholdsandoperatescertainofourassetsthroughoneormorewholly-ownedTRSs.OuruseofTRSsenablesustocontinuetoengageincertain businesses while complying with REIT qualification requirements and also allows us to retain income generated by these businesses for reinvestmentwithout therequirement of distributingthoseearnings. In thefuture, wemayelect to reorganize andtransfer certain assets or operations fromour TRSstotheCompanyorothersubsidiaries,includingqualifiedREITsubsidiaries.

TheCompany'stradingsecuritiesandotherequitysecuritiesarelimitedpartnershipsorlimitedliabilitycompanieswhicharetreatedaspartnershipsforfederalandstateincometaxpurposes.Asalimitedpartner,theCompanyreportsitsallocableshareoftaxableincomeincomputingitsowntaxableincome.TotheextentheldbyaTRS,theTRS'staxexpenseorbenefitisincludedintheConsolidatedStatementsofIncomebasedonthecomponentofincomeorgainsandlossestowhichsuchexpenseorbenefitrelates.Deferredincometaxesreflectthenettaxeffectsoftemporarydifferencesbetweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandtheamountsusedforincometaxpurposes.Avaluationallowanceisrecognizedif,basedontheweightofavailableevidence,itismorelikelythannotthatsomeportionorallofthedeferredincometaxassetwillnotberealized.

IfweceasetoqualifyasaREIT,theCompany,asaCcorporation,wouldbeobligatedtopayfederalandstateincometaxonitstaxableincome.Currently,thehighestregularmarginalfederalincometaxrateforacorporationis35percent.TheCompanymaybesubjecttoa20percentfederalalternativeminimumtaxonitsfederalalternativeminimumtaxableincometotheextentthatitsalternativeminimumtaxexceedsitsregularfederalincometax.

SEASONALITY

ThoughMoGashas stable revenues throughout the year, it will complete necessary pipeline maintenance duringthe "non-heating" season, or quarters twoandthree.Therefore,MoGasoperatingresultsfortheinterimperiodsarenotnecessarilyindicativeoftheresultsthatmaybeexpectedforthefullyear.

ASSET PORTFOLIO AND RELATED DEVELOPMENTS

Fordetaileddescriptionsofourassetportfolioandrelatedoperations,otherthanourremainingprivateequitysecuritiesasofJune30,2016,pleasereferto"Item2-Properties"inourannualreportonForm10-KfortheyearendedDecember31,2015,andtoNotes3and4intheNotestotheConsolidatedFinancialStatementsincludedinthisreport.ThissectionprovidesadditionalinformationconcerningmaterialdevelopmentsrelatedtoourassetportfoliothatoccurredduringtheperiodendedJune30,2016.

Grand Isle Gathering System

Depressed commodity prices have negatively impacted the operational and financial condition of EXXI. On April 14, 2016, EXXI and substantially all of itsdirectly andindirectly ownedsubsidiaries filedavoluntarypetitiontoreorganize underChapter 11BankruptcyCode, after reachinganagreement withcertaincreditorstoprovidesupportforarestructuringofitsdebt.Theproposedagreementwouldeliminateover$2.8billionofdebt.CorEnergy'stenantundertheGIGSLease,EnergyXXIGIGSServices,LLChasnotfiledforbankruptcy.Therefore,itsobligationsundertheGIGSLeasearecurrentlynotsubjecttothebankruptcyproceedings.

The bankruptcy filing of the guarantor of the Grand Isle Gathering System Lease, EXXI, and its failure to make interest payments to its creditors within theapplicablecureperiod,wouldhaveconstituteddefaultsunderthetermsoftheGIGSLease.However,

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CorEnergyprovidedaconditionalwaivertocertainremediesofthesedefaults.ThisallowedCorEnergy’stenanttoremainoutsidethebankruptcyproceedings.

OnApril25,2016,EXXIwasdelistedfromtheNASDAQStockMarketasaresultoffailingtomeetcertainlistingstandards.EXXIhasbeguntradingontheOTCPinkMarket.

OurtenantcontinuestomaketimelyrentpaymentsinaccordancewiththeGIGSLeaseAgreement.EXXIhasstateditsintentionstocontinuenormaloperationsduring the bankruptcy proceedings. EXXI had its Disclosure Statement approved on July 15, 2016, enabling EXXI to begin soliciting creditor approval of itsproposedPlanofReorganization.CorEnergywillcontinuetomonitor,andtakeappropriateactionsto,theinformationdisclosedthroughouttheproceedings.

Pinedale LGS

Depressed commodity prices have negatively impacted the operational and financial condition of Ultra Petroleum ("UPL"). UPL filed on April 29, 2016, avoluntarypetitiontoreorganizeunderChapter 11. ThefilingincludesUltraWyomingLGS,LLC,theoperator ofthePinedaleLGSandtenant ofthePinedaleLeaseAgreement.

The bankruptcy filing of both the guarantor, Ultra Petroleum, and the tenant and circumstances prompting the filing constitute defaults under the terms of thePinedaleLeaseAgreement.ThebankruptcyfilingservesasastayoftheCompany'sabilitytoexerciseremediesforcertainofthosedefaults.However,Section365of the Bankruptcy Code requires Ultra Wyoming to comply on a timely basis with many provisions of the Pinedale Lease Agreement, including the paymentprovisions.TheonlyexceptiontothatrequirementisifUltraWyomingtakesspecificactiontorejectthePinedaleLeaseAgreement.UltraWyominghasnotfiledamotionto reject thePinedale Lease. OnJuly27, 2016, Ultra PetroleumfiledwiththeU.S. BankruptcyCourt a motionto extendtheexclusiveperiodduringwhichtheCompanycanfileaChapter11planandsolicitacceptancesthereofthroughandincludingFebruary28,2017andApril30,2017,respectively.

OnMay2,2016,UPLwasdelistedfromtheNYSEStockMarketasaresultoffailingtomeetcertainlistingstandards.UPLhasbeguntradingontheOTCPinkMarket.OurtenantcontinuestomaketimelyrentpaymentsinaccordancewiththePinedaleLeaseAgreement.UPLhasstateditsintentionstocontinuenormaloperations during the bankruptcy proceedings. UPLhas requested an extension to file its proposed Plan of Reorganization andDisclosure Statement until firstquarter2017.WeanticipateUPLwillacceptorrejectitsleases,includingthePinedaleLeaseAgreement,byyear-end2016.CorEnergywillcontinuetomonitor,andtakeappropriateactionsto,theinformationdisclosedthroughouttheproceedings.

MoGas Pipeline

OnJune 1, 2016, the Federal Energy Regulatory Commission (“FERC”) authorized MoGas to sell its natural gas pipeline facilities to an affiliate, CorEnergyPipelineCompany,LLC(“CPC”).FERCauthorizedMoGastoleasethesesamefacilitiesbackfromCPCandcontinuetoserveasoperatorofthefacilities.FERCalsoauthorizedMoGastoconsolidateitsaccountingwithCPCsothatMoGas’sleasepaymentstoCPCwillbeoffsetbytheequivalentrevenuereceivedbyCPC.The sale and leaseback transaction authorized by FERC will position lease payments that MoGas makes to CPC to qualify as REIT rental income shouldCorEnergysellamajoritystakeinMoGasstocktoanunaffiliatedthirdparty.Atthetimeofsuchsale,MoGasmustseekFERCapprovaltocombineitsaccountswiththethird-partyowner.

Black Bison

OnFebruary29,2016,theCompanyforeclosedon100percentoftheequityofBBIntermediate,theholdingcompanyofBlackBisonWaterServices,LLC,theborroweroftheBlackBisonfinancingnotereceivable.SeeNote4intheNotestotheConsolidatedFinancialStatementsinthisreport.

OnJune16,2016,theCompanysoldsubstantiallyalloftheassetsofBBWSanditssubsidiariestoExpeditionWaterSolutionsforacombinationofcashplusanearn-out.CorEnergyreceived$1.0millionofcash,beforefees,uponclosingtheagreement,retainedcertainworkingcapitalinvestments,andwillreceiveroyaltypaymentsonfuturesaleswithalimitof$6.5million.RoyaltypaymentswillnotincreaseAFFO.

Four Wood

CorEnergyisintheprocessofrestructuringitsFourWoodfinancingnotetoSWDandconvertingaportionofitintopreferredequityinterest.CashandPayment-in-KindinterestanddividendswillnotincreaseAFFOuntilFourWoodgeneratessustainableoperatingmarginsandthereserveforcollectionhasbeenremoved.

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Omega Pipeline

OnJanuary 28, 2016, Omega was awarded a new10-year contract with the Department of Defense, to provide natural gas and gas distribution assets to FortLeonardWoodthroughOmega’sapproximately70-milepipelinedistributionsystemonthemilitarybase.Asaresultofthenewcontractnaturalgasandpropanecostsarebeingpresentednetintransportationanddistributionrevenue.SeeNote2intheNotestotheConsolidatedFinancialStatementsinthisreport.

Private Security Assets

AsofJune30,2016,ourinvestmentinLightfootrepresentsapproximately1.2percentoftheCompany’stotalassets.ThefollowingtableisasummaryofthefairvalueofLightfootatJune30,2016,ascomparedtothefairvalueatDecember31,2015:

Fair Value of Other Equity Securities

Fair Value At June

30, 2016

Fair Value AtDecember 31,

2015 $ Change % ChangeLightfoot $ 8,036,136 $ 8,393,683 $ (357,547) (4.3)%

Lightfoot

ThefairvalueofLightfootasofJune30,2016,decreasedapproximately$358thousand,or4.3percent,ascomparedtothevaluationatDecember31,2015,primarilyduetothechangeinvalueofArcLogistics'publiclytradedshares,offsetbyadecreaseintheCompany'smarketabilitydiscount.

DuringthethreeandsixmonthsendingJune30,2016,theCompanyreceivedadistributionof$213thousandand$468thousand,respectively,andexpectsthesedistributionstobefundedprimarilybyLightfoot’sdistributionsfromArcLogisticsandGulfLNG.However,boththeabilityofArcLogisticsandGulfLNGtomakequarterlydistributionsandtheamountofsuchdistributionswillbedependentonArcLogistics'andGulfLNG'sbusinessresults,andneitherArcLogistics,GulfLNG,norLightfootisunderanyobligationtomakesuchdistributions.OnMarch1,2016anaffiliateofGulfLNGreceivedaNoticeofDisagreementandDisputedStatementsandaNoticeofArbitrationfromEniUSAGasMarketingL.L.C("EniUSA"),oneofthetwocompaniesthathadenteredintoaterminaluseagreementforcapacityoftheliquefiednaturalgasfacilityownedbyGulfLNGanditssubsidiaries.ShouldEniUSAterminateits'agreementwithGulfLNG,thiscould materially impact Arc Logistics and Gulf LNG's ability to fund their distributions to the Company. Accordingly, there can be no assurance that ourexpectationsconcerning2016distributionsfromLightfootwillberealized.

VantaCore

Thecompanyreceiveditsfinalescrowdistributionof$1.4milliononApril1,2016.

LIQUIDITY AND CAPITAL RESOURCES

Overview

AtJune30,2016,wehadapproximately$63.2millionavailableforfutureinvestmentrepresentingcashof$8.1millionplusrevolveravailabilityof$55.1millionlessthefollowingnear-termcommitments:

• currentmaturitiesoflong-termdebtof$8.6million;• accountspayableandotheraccruedliabilitiestotaling$2.5million;and• managementfeepayableof$1.7million.

There are opportunities that are in preliminary stages of review, and consummation of any of these opportunities depends on a number of factors beyond ourcontrol. There can be no assurance that any of these acquisition opportunities will result in consummated transactions. As part of our disciplined investmentphilosophy,weplantouseamoderatelevelofleverage,approximately25percentto50percentofassets,supplementedwithaccretiveequityissuanceasneeded,subjecttocurrentmarketconditions.Wemayinvestinassetssubjecttogreaterleveragewhichcouldbebothrecourseandnon-recoursetous.

Cash Flows - Operating, Investing, and Financing Activities

CashFlowsfromOperatingActivitiesForthesixmonthsendedJune30,2016,cashprovidedbyoperatingactivitiestotaledapproximately$26.0million,representinganincreaseofapproximately$11.4millionascomparedtothesixmonthsendedJune30,2015.Thesignificantfactorsimpactingtheincreaseareasfollows:

• GIGSleasepaymentstotaling$15.8million.

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• ProceedsfromfinalescrowdistributionrelatedtothesaleofVantacoreofapproximately$1.4million.• Increaseininterestpaidofapproximately$5.0million.• Decreaseinfinancingnoterevenueofapproximately$1.2million.

ForthesixmonthsendedJune30,2015,cashprovidedbyoperatingactivitiestotaledapproximately$14.6millionrepresentinganincreaseofapproximately$2.3millionoverthesameperiodoftheprioryear. Thesignificant increasesanddecreasesincashprovidedbyoperatingactivitiesthatprimarilydrovethischangeincludedthefollowing:

• MoGas,acquiredinNovember2014,netoperatingresultscontributed$5.2million.• PortlandTerminal Facility lease payments hadincreasedto the full amount of the base rent andhadalsoincreasedas a result of nearly $9million in

completedconstructionprojects,contributingapproximately$1.6million.• AdditionalpaymentstotheCompanyresultingfromaJuly2014increaseinFinancingNotesReceivablecontributednearly$800thousandtotheincrease

overprioryear.• EIP: Thefirsthalfof2014includednearly$4.3millioninadvancerentalpayments.InconjunctionwiththeagreementtosellEIPtoPNMonApril1,

2015 upon expiration of the lease, the lease payments that would have been due over the remainder of the termwere accelerated and paid in full onJanuary1,2014.

• AnetincreaseintheCompany’sassetbaseforthesixmonthsendedJune30,2015ascomparedtotheprioryearperiodresultedinapproximately$986thousandinadditionalmanagementfeespaidtoCorridor.

CashFlowsfromInvestingActivitiesSignificantfactorsimpactingthe$296thousandofcashprovidedininvestingactivitiesduringthesixmonthsendedJune30,2016wereasfollows:

• Netproceedsfromthesaleofassetsandliabilitiesheldforsaleof$645thousand.• Purchasesofpropertyandequipmentof$372thousand.• ProceedsreceivedonforeclosureofBBIntermediateof$223thousand.• FundingtocloseoperationsofBlackBisonandFourWoodfinancingnotesof$202thousand.

Significantfactorsimpactingthe$242.3millionofcashusedininvestingactivitiesduringthesixmonthsendedJune30,2015includedthefollowing:• Deployedapproximately$246.5milliontoacquiretheGIGSassets.• $3.4millionofcapitalimprovementsinconnectionwiththePortlandTerminalfacility.• ThesaleoftheEIPassetonApril1,2015providedadditionalcashofapproximately$7.7million.

CashFlowsfromFinancingActivitiesSignificantfactorsimpactingthe$32.8millionofcashusedinfinancingactivitiesduringthesixmonthsendedJune30,2016includedthefollowing:

• Repurchasesofcommonstockofapproximately$2.0million.• Repurchasesofconvertibledebtofapproximately$931thousand.• Commonandpreferreddividendspaidof$17.6millionand$2.1million,respectively.• $44.0milliondrawnontheRegionsrevolverthenusedinconnectionwiththePinedalerefinancing.• Principalpaymentsof$52.2millioninconnectionwiththePinedalefacility.• Principalpaymentsonthetermnoteof$1.8million.

Significantfactorsimpactingthe$232.5millionofcashprovidedbyfinancingactivitiesduringthesixmonthsendedJune30,2015includedthefollowing:• The January 2015 preferred stock offering generated approximately $54.2 million , of which, $32.0 millionwas subsequently used to pay down the

RegionsRevolver.• InconnectionwiththeacquisitionoftheGIGSassets,theCompanyraisedatotalof$226.7millionasfollows:

◦ $73.2millioninnetproceedsraisedinafollow-oncommonstockoffering;◦ $111.3millioninnetproceedsfromthe7.00%ConvertibleNoteoffering;and◦ $42.0milliondrawnontheRegionsRevolver.

• Commonandpreferreddividendspaidofapproximately$12.0millionand$1.4million,respectively.

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Revolving and Term Credit Facilities

CreditFacilitiesoftheREIT

EffectiveasofMarch4,2016,theCompanyandtherequiredlendersundertheRegionsRevolverexecutedaLimitedConsentandAmendment(the“Consent”).PursuanttosuchConsent,amongotherthings,thelendersconsentedtotheCompany’suseofupto$49.0million,upto$44.0millionofwhichcouldcomefromtheproceedsofdrawsundertheRegionsRevolver,inconnectionwiththerefinancingofPinedaleLP’soutstandingindebtednessdueunderthe$70millionsecuredtermcreditfacilityonMarch30,2016asdiscussedbelow.TheCompanypaidfeestothelendersinconnectionwiththeConsentinanaggregateamountof$193thousand.TheCompanysubsequentlydrew$44millionontheRegionsRevolverinconjunctionwiththerefinancingofthePinedaleFacilityandasofJune30,2016,hasapproximately$55.1millionofavailableborrowingcapacityontheRegionsRevolver.

ForasummaryoftheadditionalmaterialtermsoftheRegionsCreditFacilityandtherefinancingofthePinedaleLPfacility(asdiscussedbelow),pleaseseeNote14intheNotestotheConsolidatedFinancialStatementsincludedintheCompany'sAnnualReportonForm10-KfortheyearendedDecember31,2015andNote10intheNotestotheConsolidatedFinancialStatementsincludedinthisreport.

PinedaleFacility

PinedaleLP's$70.0millionsecuredtermcreditfacilitywassettoexpireattheendofDecember2015;however,theCompanyextendedthefacilitythroughMarch30,2016.UndertheDecember31,2015extensionamendment,outstandingbalancesaccruedinterestatavariableannualrateequaltoLIBORplus4.25percent.PinedaleLPmadeprincipalpaymentstotalingapproximately$3.2millionduringtheextensionperiodthroughMarch30,2016.OnMarch30,2016,theCompanyandPrudential,astheRefinancingLendersandinproportiontotheirprorataequityinterestsinPinedaleLP,togetherpaidtheremaining$58.5millionprincipalbalanceofthe$70.0millionsecuredtermcreditfacilityandexecutedaseriesofagreementsassigningthecreditfacilitytoCorEnergyInfrastructureTrust,Inc.asAgent for the Refinancing Lenders. Through March 30, 2016, the interest rate swap derivatives remained in place on $52.5 million of the secured termcreditfacility at a fixed rate of 0.865 percent less a floating, 1-month LIBORrate. As part of the March 30, 2016 refinancing, the Company terminated one of thederivativecontracts,representinghalfoftheamounthedged.

RefertoNote10intheNotestotheConsolidatedFinancialStatementsincludedinthisreportforadditionalinformation.

ConvertibleNotes

Asauthorizedbytheboardofdirectors,duringMay2016,theCompanyrepurchased$1.0millionoffacevalueoftheConvertibleNotes.RefertoNote15intheNotestotheConsolidatedFinancialStatementsincludedintheCompany'sAnnualReportonForm10-KfortheyearendedDecember31,2015andNote11intheNotestotheConsolidatedFinancialStatementsincludedinthisreportforadditionalinformationconcerningtheConvertibleNotes..

MoGasCreditFacility

AsofJune30,2016,theco-borrowersareincompliancewithallcovenantsandtherehadbeennoborrowingsagainsttheMoGasRevolver.

Mowood/OmegaRevolver

TheMowood/OmegaRevolverisusedbyOmegaforworkingcapitalandgeneralbusinesspurposes,isguaranteedandsecuredbytheassetsofOmega.OnJuly28, 2016the maturity date of July 31, 2016wasamendedandextendedto July 31, 2017. Interest accrues at LIBORplus 4 percent andis payable monthly inarrearswithnounusedfee.TherewasnooutstandingbalanceatJune30,2016.

RefertoNote14intheNotestotheConsolidatedFinancialStatementsincludedinthisreportforadditionalinformationregardingrenewaloftheMowood/OmegaRevolver.

Debt Covenants

Under the terms of the amended and restated Regions Revolver and term loan agreement, as of June 30, 2015, the Company is subject to certain financialcovenantsasfollows:(i)aminimumdebtservicecoverageratioof2.0to1.0;(ii)amaximumtotalleverageratioof5.0to1.0;(iii)amaximumseniorsecuredrecourseleverageratio(whichgenerallyexcludesdebtfromUnrestrictedSubs)of3.0to1.0.;and(iv)amaximumtotalfundeddebttocapitalizationratioof50percent.EffectiveSeptember30,2015,theRegionsRevolverwasamendedtoclarifythatthecovenantrelatedtotheCompany'sabilitytomakedistributionsistiedtoAFFOandapplicableREITdistributionrequirements,andprovidesthat,intheabsenceofanyaccelerationofmaturityfollowingan

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Event of Default, theCompanymaymakedistributionsequal tothegreater of theamountrequiredtomaintaintheCompany's REITstatus and100percent ofAFFOforthetrailing12-monthperiod.

The$70millionsecuredtermcreditfacilityissubjectto(i)aminimuminterestratecoverageratioof5.5to1.0;(ii)amaximumleverageratioof3.25to1.0;and(iii)aminimumnetworthof$115.0million,eachmeasuredatthePinedaleLPlevelandnotattheCompanylevel.AsaresultoftheMarch30,2016refinancingtheminimuminterestcoverageratiowasamendedtoaratioof3.0to1.0.WewereincompliancewithallcovenantsatJune30,2016.

Equity Offerings

OnFebruary18,2016,wehadanewshelfregistrationstatementdeclaredeffectivebytheSEC,pursuanttowhichwemaypubliclyofferadditionaldebtorequitysecuritieswithanaggregateofferingpriceofupto$600.0million.

AsofJune30,2016,wehaveissued19,233sharesofcommonstockundertheCompany'sdividendreinvestmentplan,reducingavailabilitybyapproximately$332thousand.

Liquidity and Capitalization

Our principal investing activities are acquiring and financing midstream and downstream real estate assets within the U.S. energy infrastructure sector andconcurrently entering into long-term triple-net participating leases with energy companies. These investing activities have generally been financed from theproceedsofourpublicequityanddebtofferingsaswellasthetermandcreditfacilitiesmentionedabove.Continuedgrowthofourassetportfoliowilldependinpart on our continued ability to access funds through additional borrowings and securities offerings. The following is our liquidity and capitalization as of thebelownoteddates:

Liquidity and Capitalization

As of June 30, 2016 As of December 31,

2015

Cashandcashequivalents $ 8,116,117 $ 14,618,740

Creditfacility 44,000,000 —

Long-termdebt(includingcurrentmaturities) 152,001,604 216,864,752

Stockholders'equity:

SeriesACumulativeRedeemablePreferredStock7.375%,$0.001parvalue 56,250,000 56,250,000

Capitalstock,non-convertible,$0.001parvalue 11,870 11,940


Accumulatedothercomprehensive(loss)income (17,274) 190,797

CorEnergyequity 408,515,400 418,034,244

TotalCorEnergycapitalization $ 604,517,004 $ 634,898,996

Wealsohavetwolinesofcreditforworkingcapitalpurposesfortwoofoursubsidiarieswithmaximumavailabilityof$3.0millionand$1.5million.

Liquidity Analysis

Inanalyzingourliquidity, wegenerallyexpect that ourcashprovidedbyoperatingactivities will fundournormalrecurringoperatingexpenses, recurringdebtservicerequirements,anddividendstoshareholders.

Our sources of liquidity as of June 30, 2016 to pay our remaining 2016 commitments include the amounts available under our revolving credit facilities ofapproximately$56.6millionandunrestrictedcashonhandofapproximately$8.1million.AsauthorizedbyourBoardofDirectors,wemayuseourliquiditytopurchaseuptoanadditional$10.0millionofourcommonstockandupto$15.0millionoffacevalueofourconvertibledebt,subjecttomarketconditionsandcompliancewithallapplicableregulatoryrequirements.AsofJune30,2016theCompanyhasrepurchasedapproximately$2.0millionofcommonstockand$1.0millionof face value of the convertible debt. See Notes 11 and 12 in the Notes to the Consolidated Financial Statements in this report, for convertible debtrepurchasedandsharesofcommonstockpurchased,respectively.

Wealsobelievethatwewillbeabletorepay,extend,refinanceorotherwisesettleourdebtobligationsfor2016andthereafterasthedebtcomesdue,andthatwewill beabletofundourremainingcommitmentsasnecessary.However,therecanbenoassurancethatadditionalfinancingorcapital willbeavailable, orthattermswillbeacceptableoradvantageoustous.

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Private Securities Investments

AsofJune30,2016,ouronlyremainingsecuritiesinvestmentwasLightfoot.ForadditionalinformationconcerningLightfootandrelateddevelopmentsduring2016pleaserefertothediscussionpresentedaboveinthisItem2undertheheading“AssetPortfolioandRelatedDevelopments.”

Wedonotplantomakeadditionalinvestmentsinsecurities(otherthanshort-term,highlyliquidinvestmentstobeheldpendingacquisitionofrealpropertyassetsand,totheextentcompatiblewithourstatusasaREIT,equityenhancementstocertainofourrealpropertyinvestments),andweintendtoliquidateourremainingprivatesecuritiesinvestmentsinanorderlymanner.

CONTRACTUAL OBLIGATIONS

ThefollowingtablesummarizesoursignificantcontractualpaymentobligationsasofJune30,2016:

Contractual Obligations

Notional Value Less than

1 year 1-3 years 3-5 years More than 5

yearsPinedaleLPDebt(2) $ 10,329,185 $ 864,768 $ 1,337,112 $ 8,127,305 $ —InterestpaymentsonPinedaleLPDebt(2) 798,400 1,431,576 1,110,710 —ConvertibleDebt $ 114,000,000 — — 114,000,000 —InterestpaymentsonConvertibleDebt 7,980,000 15,960,000 7,980,000 —RegionsTermNote(1) $ 41,400,000 7,890,000 12,920,000 20,590,000 —InterestpaymentonRegionsTermNote 1,412,201 2,090,916 342,906 —RegionsRevolver $ 44,000,000 — — 44,000,000 —InterestpaymentonRegionsRevolver 1,650,611 3,301,222 759,733 —Totals $ 20,595,980 $ 37,040,826 $ 196,910,654 $ —(1) The amount shown as the Notional Value for the Regions Term Note represents the outstanding principal balance at June 30, 2016.(2) The amounts for Pinedale LP debt above represent Prudential's share of the principal and interest payments which is 18.95% of thetotal. The Company's share of the principal and interest are eliminated in consolidation as these became intercompany on March 30, 2016due to CorEnergy taking over with Prudential as Refinancing Lenders on the Pinedale LP note. See footnote 10, Credit Facilities, for furtherinformation.

FeespaidtoCorridorundertheManagementAgreementandtheAdministrativeAgreementarenotincludedbecausetheyvaryasafunctionofthevalueofourtotalassetbase.ForadditionalinformationseeNote8intheNotestotheConsolidatedFinancialStatementsinthisreport.

OFF-BALANCE SHEET ARRANGEMENTS

Wedonot have, and are not expected to have, anyoff-balance sheet arrangements that have or are reasonably likely to have a current or future effect on ourfinancialcondition,changesinfinancialcondition,revenuesorexpenses,resultsofoperations,liquidity,capitalexpendituresorcapitalresources.

MAJOR TENANTS

As of June 30, 2016 , the Company had three significant leases. For additional information concerning each of these leases, see Note 3 in the Notes to theConsolidatedFinancialStatementsincludedinthisreport.

DIVIDENDS

Ourportfolioofrealpropertyassets,promissorynotes,andinvestmentsecuritiesgeneratescashflowtousfromwhichwepaydistributionstostockholders.Forthe period ended June 30, 2016 , the sources of our stockholder distributions include lease revenue and transportation and distribution revenue from our realpropertyassetsanddistributionsfromourinvestmentsecurities.Distributionstocommonstockholdersarerecordedontheex-dividenddateanddistributionstopreferredstockholdersarerecordedwhendeclaredbytheBoardofDirectors.Thecharacterizationofanydistributionforfederalincometaxpurposeswillnotbedetermineduntilaftertheendofthetaxableyear.

OnFebruary29,2016,theCompanypaidfourthquarterdividendsof$0.75pershareofcommonstockand$0.4609375perdepositarysharefortheCompany’s7.375%SeriesACumulativeRedeemablePreferredStock.

OnMay31,2016,theCompanypaidfirstquarterdividendsof$.075pershareofcommonstockand$0.4609375perdepositarysharefortheCompany's7.375%SeriesACumulativeRedeemablePreferredStock.

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OnJuly27,2016,theCompany'sBoardofDirectorsdeclaredsecondquarterdividendsof$.075pershareofcommonstockand$0.4609375perdepositarysharefortheCompany's7.375%SeriesACumulativeRedeemablePreferredStockpayableonAugust31,2016.

AREITisgenerallyrequiredtodistributeduringthetaxableyearanamountequaltoatleast90percentoftheREITtaxableincome(determinedunderInternalRevenueCodesection857(b)(2),withoutregardtothedeductionfordividendspaid).WeintendtoadheretothisrequirementinordertomaintainourREITstatus.TheBoardofDirectorswillcontinuetodeterminetheamountofanydistributionthatweexpecttopayourstockholders.

IMPACT OF INFLATION AND DEFLATION

Deflationcanresultinadeclineingeneralpricelevels,oftencausedbyadecreaseinthesupplyofmoneyorcredit.Thepredominanteffectsofdeflationarehighunemployment,creditcontraction,andweakenedconsumerdemand.Restrictedlendingpracticescouldimpactourabilitytoobtainfinancingsortorefinanceourpropertiesandourtenants' abilitytoobtaincredit. Duringinflationaryperiods,weintendforsubstantiallyallofourtenantleasestobedesignedtomitigatetheimpactofinflation.Generally,ourleasesincluderentescalatorsthatarebasedontheCPI,orotheragreeduponmetricsthatincreasewithinflation.

CRITICAL ACCOUNTING ESTIMATES

The financial statements included in this report are based on the selection and application of critical accounting policies, which require management to makesignificant estimates andassumptions. Critical accountingpolicies arethosethat arebothimportant tothepresentationofourfinancial conditionandresults ofoperationsandrequiremanagement’smostdifficult,complex,orsubjectivejudgments.ThepreparationoftheconsolidatedfinancialstatementsinconformitywithU.S.GAAPrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountofassetsandliabilities,recognitionofdistributionincome,anddisclosureofcontingentassetsandliabilitiesatthedateoftheconsolidatedfinancialstatements.Actualresultscoulddifferfromthoseestimates.SeeNote2totheConsolidatedFinancialStatementsincludedinthisreportforfurtherinformationrelatedtooursignificantaccountingpolicies.

A more complete discussion of our critical accounting estimates is presented under the heading “Critical Accounting Estimates” in Item 7, Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations,inourannualreportonForm10-KfortheyearendedDecember31,2015aspreviouslyfiledwiththeSEC.ThefollowinginformationupdatesourdiscussionofCriticalAccountingEstimatesrelatedtoLong-LivedAssetsandGoodwillinourannualreport.

Goodwill Impairment

Our goodwill represents the excess of the amount we paid for MoGas over the fair value of the net identifiable assets acquired. We periodically evaluate ourgoodwillforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountofsuchassetsmaynotberecoverable.Thisevaluationrequiresustocomparethefairvalueoftheassetstothecurrentandfutureoperatingperformanceoftheassets,themostimportantofwhichisdiscountedoperatingcashflows.Ifthefairvalueexceedsthecarryingamount,goodwillisnotconsideredimpaired.

WeestimatethefairvalueofMoGasbasedonanumberoffactors,includingdiscountrates,projectedcashflows,andthepotentialvaluewewouldreceiveifwesold the business. Wealso compare the total fair value to our overall enterprise value, which considers the market value for our commonand preferred units.EstimatingprojectedcashflowsrequiresustomakecertainassumptionsasitrelatestothefutureoperatingperformanceofMoGasandassumptionsrelatedtotheircustomers,suchastheirfuturecapitalandoperatingplansandtheirfinancialcondition.Whenconsideringoperatingperformance,variousfactorsareconsideredsuch as current and changing economic conditions and the commodity price environment, among others. Due to the imprecise nature of these projections andassumptions, actual results candiffer fromour estimates. If the assumptions embodiedin the projections proveinaccurate, wecouldincur a future impairmentcharge.

WeacquiredMoGasonNovember24,2014andrecordedtheassets,liabilitiesandgoodwillatfairvalueonthedatetheywereacquired.Asaresult,anylevelofdecrease in theforecasted cashflowsof theseassets or increases in thediscount rates utilizedto valuetheassets fromtheir respective acquisitiondates wouldlikelyresultinthefairvalueoftheassetsfallingbelowthecarryingvalue,andcouldresultinanassessmentofwhethertherelatedgoodwillisimpaired.

Commoditypriceshavecontinuedtodeclinesincelate2014,andthatdeclinehasadverselyimpactedforecastedcashflows,discountrates,andstock/unitpricesformostcompaniesintheenergyindustry.

Wecontinuetomonitorgoodwillandwecouldexperienceimpairmentsofgoodwillinthefutureifweexperiencematerialcustomerdefaults.AsofJune30,2016wehavenotrecordedanyimpairmentsofgoodwill.

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Long-Lived Assets

Ourlong-livedassetsconsistprimarilyofasubseamidstreampipelinesystem,liquidsgatheringsystem,petroleumproductsterminal,andnaturalgaspipelinesthathavebeenobtainedthroughabusinesscombinationandassetacquisitions.Theinitialrecordingoftheselong-livedassetswasatfairvalue,whichisestimatedbymanagementprimarilyutilizingmarket-relatedinformationandotherprojectionsontheperformanceoftheassetsacquired.Managementreviewsthisinformationto determine its reasonableness in comparison to the assumptions utilized in determining the purchase price of the assets in addition to other market-basedinformationthatwasreceivedthroughthepurchaseprocessandothersources.Theseprojectionsalsoincludeprojectionsonpotentialobligationsassumedintheseacquisitions. Duetotheimprecisenatureof theprojectionsandassumptionsutilizedindeterminingfair value, actual results can, andoftendo, differ fromourestimates.

Weutilizeassumptionsrelatedtotheusefullivesandrelatedterminalvalueofourlong-livedassetsinordertodeterminedepreciationandamortizationexpenseeachperiod.Duetotheimprecisenatureoftheprojectionsandassumptionsutilizedindeterminingusefullives,actualresultscandifferfromourestimates.

Wecontinuallymonitorourbusiness,thebusinessenvironment,andtheperformanceofouroperationstodetermineifaneventhasoccurredthatindicatesthatalong-livedassetmaybeimpaired.Ifaneventoccurs,whichisadeterminationthatinvolvesjudgment,wemayberequiredtoutilizecashflowprojectionstoassessourabilitytorecoverthecarryingvalueofourassetsbasedonourlong-livedassets'abilitytogeneratefuturecashflowsonanundiscountedbasis.Thisdiffersfrom our evaluation of goodwill, for which we perform an assessment of the recoverability of goodwill utilizing fair value estimates that primarily utilizediscounted cash flows in the estimation process (as described above), and accordingly any goodwill impairment recognized maynot be indicative of a similarimpairmentoftherelatedunderlyinglong-livedassets.

Projectedcashflowsofourlong-livedassetsaregenerallybasedoncontractual cashflowsrelatingtoexistingleasesthat extendmanyyearsintothefuture. Ifthosecashflowprojectionsindicatethatthelong-livedasset'scarryingvalueisnotrecoverable,werecordanimpairmentchargefortheexcessofcarryingvalueoftheassetoveritsfairvalue.Theestimateoffairvalueconsidersanumberoffactors,includingthepotentialvaluewewouldreceiveifwesoldtheasset,discountrates,andprojectedcashflows.Duetotheimprecisenatureoftheseprojectionsandassumptions,actualresultscandifferfromourestimates.

Wecontinuetomonitorourlong-livedassets, andwecouldexperienceadditionalimpairmentsoftheremainingcarryingvalueoftheselong-livedassetsinthefutureifwereceiveadditionalnegativeinformationaboutmarketconditionsorourtenantswhichcouldnegativelyimpacttheforecastedcashflowsordiscountratesutilizedtodeterminethefairvalueofthoseinvestments.AsofJune30,2016,wehavenotrecordedanimpairmentoflong-livedassets.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our business activities contain elements of market risk. We consider fluctuations in the value of our securities portfolio to be our principal market risk. WithrespecttoourequitysecuritiesasofJune30,2016,therewerenomaterialchangestoourmarketriskexposureascomparedtotheendofourprecedingfiscalyearendedDecember31,2015.

AsofJune30,2016,thefairvalueofoursecuritiesportfolio(excludingshort-terminvestments)totaledapproximately$8.0million.Weestimatethattheimpactofa10percentincreaseordecreaseinthefairvalueofthesesecurities,netofrelateddeferredtaxes,wouldincreaseordecreasenetassetsapplicabletocommonshareholdersbyapproximately$500thousand.

Ourequityanddebtsecurities,outsideoftheconvertiblenotes,arereportedatfairvalue.Thefairvalueofsecuritiesisdeterminedusingreadilyavailablemarketquotationsfromtheprincipalmarket,ifavailable.Becausetherearenoreadilyavailablemarketquotationsformanyofthesecuritiesinourportfolio,wevalueoursecuritiesatfairvalueasdeterminedingoodfaithunderavaluationpolicyandaconsistentlyappliedvaluationprocess,whichhasbeenapprovedbyourBoardofDirectors. Dueto the inherent uncertainty of determining the fair value of securities that do not have readily available market quotations, the fair value of oursecuritiesmaydiffersignificantlyfromthefairvaluesthatwouldhavebeenusedhadareadymarketquotationexistedforsuchsecurities,andthesedifferencescouldbematerial.

Long-termdebtusedtofinanceouracquisitionsmaybebasedonfloatingorfixedrates.AsofJune30,2016,wehad$153.8millioninlong-termdebt(netofcurrentmaturities).TheCompanyusesinterestrateswapstomanageitsinterestraterisk.Thevaluationoftheseinstrumentsisdeterminedusingwidelyacceptedvaluation techniques including discounted cash flowanalysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of thederivatives,includingtheperiodtomaturity,andusesobservablemarket-basedinputs,includingforwardinterestratecurves.Thefairvaluesofinterestrateswapsare determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cashreceipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forwardcurves.Changesininterestratescancauseinterestchargestofluctuateonthatportionofourvariableratedebtwhichisnothedged.

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OnMarch 30, 2016, the Company and Prudential ("the Lenders") together paid their pro rata shares of the $58.5 million principal balance of the $70millionsecuredtermcreditfacilityandtheCompanyexecutedaseriesofagreementsassigningthecreditfacilitytoCorEnergyInfrastructureTrust,Inc.asAgentfortheLenders.ThefacilitywasfurthermodifiedtoincreasetheLIBORRatetothegreaterof(i)1.0%and(ii)theone-monthLIBORrate;andtoincreasetheLIBORRateSpreadtosevenpercent(7.0percent) perannum.TheCompanyalsoterminatedoneofitsoriginal derivativecontracts, leavinga$26.3millionderivativecontractwithBankofAmericaasofJune30,2016.

Variablerate debtasofJune30, 2016 ,was$10.3millionunder thePinedale facility,$44.0millionunder theRegionsRevolver, and$41.4millionundertheRegions TermNote. These variable rate debt instruments total$69.5millionof variable rate debt after giving effect to our$26.3millioninterest rate swapatJune30,2016.A100basispointincreaseordecreaseincurrentLIBORrateswouldresultina$348thousandincreaseordecreaseofinterestexpenseforthesixmonthsendedJune30,2016.AsofJune30,2016, thefair valueofourhedgederivativeliabilitytotaledapproximately$125thousand.Weestimatethattheimpactofa100basispointincreaseintheone-monthLIBORratewouldincreasethenethedgedderivateinstrumentby$373thousand,whileadecreaseof100basispointswoulddecreasethenethedgedderivativeinstrumentby$196thousandasofJune30,2016.

Weconsiderthemanagementofriskessentialtoconductingourbusinesses.Accordingly,ourriskmanagementsystemsandproceduresaredesignedtoidentifyandanalyzeourrisks,tosetappropriatepoliciesandlimitsandtocontinuallymonitortheserisksandlimitsbymeansofreliableadministrativeandinformationsystemsandotherpoliciesandprograms.

ITEM 4. CONTROLS AND PROCEDURES

Conclusion Regarding Effectiveness of Disclosure Controls and Procedures

Underthesupervisionandwiththeparticipationofourmanagement,includingourChiefExecutiveOfficerandChiefAccountingOfficer(ourprincipalexecutiveandprincipalfinancialofficers,respectively),wehaveevaluatedtheeffectivenessofourdisclosurecontrolsandprocedures,asdefinedinRule13a-15(e)undertheSecurities Exchange Act of 1934, as amended, as of the end of the period covered by this report. Based on that evaluation, these officers concluded that ourdisclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under theSecurities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms, and isaccumulatedandcommunicatedtoourmanagement,includingourChiefExecutiveOfficerandChiefAccountingOfficer,asappropriate,toallowtimelydecisionsregardingrequireddisclosure.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting, as defined in rule 13a-15(f) and 15d-15(f) of the Exchange Act, thatoccurredduringthequarterlyperiodendingJune30,2016,thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect, ourinternalcontroloverfinancialreporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Wearenotcurrentlysubjecttoanymateriallegalproceedings,nor,toourknowledge,isanymateriallegalproceedingthreatenedagainstus.

48


ITEM 1A. RISK FACTORS

PartI,“Item1A.RiskFactors”inourAnnualReportonForm10-KfortheyearendedDecember31,2015,setsforthinformationrelatingtoimportantrisksanduncertainties that could materially adversely affect our business, financial condition, or operating results. Those risk factors continue to be relevant to anunderstanding of our business, financial condition, and operating results for the quarter ended June 30, 2016. Each risk factor below amends and restates thecorrespondingriskfactorpreviouslydisclosedinPartI,Item1A.,RiskFactorsofourAnnualReportonForm10-KforthefiscalyearendedDecember31,2015.Otherthanassetforthbelow,therehavebeennomaterialchangestotheriskfactorscontainedinourAnnualReportonForm10-KfortheyearendedDecember31,2015.

Risks Related to Our Investments in Real Estate and the U.S. Energy Infrastructure Sector

Risks Related to Our Two Largest Investments

The Grand Isle Gathering System and the Pinedale LGS constitute the largest single component of our leased infrastructure real property assets andassociated lease revenues and will materially impact the results of our business.

TheGrandIsleGatheringSystemrepresentedapproximately38percentofourtotalassetsasofJune30,2016andDecember31,2015,respectively,andtheleaseundertheGrandIsleLeaseAgreementwiththeEXXITenantrepresentedapproximately46percentand29percentofourtotalrevenueforthesixmonthsendedJune30,2016andtheyearendedDecember31,2015,respectively.ThePinedaleLGSrepresentedapproximately30percentofourtotalassetsasofbothJune30,2016andDecember 31, 2015and the lease payments under the Pinedale Lease Agreement with Ultra Wyoming represented approximately 23 percent and 29percentofourtotalrevenueforthesixmonthsendedJune30,2016andtheyearendedDecember31,2015,respectively.

EXXI,thecorporateparentandguarantoroftheobligationsofEXXITenantundertheGrandIsleLeaseAGreementandcertainentitiesaffiliatedtoitfiledforbankruptcyonApril14,2016.TheEXXITenantdidnotfileforbankruptcy.Theentitiesthatdidfileforbankruptcysubsequentlysought,andobtainedfromthebankruptcycourt,anordercharacterizingusasacriticalvendor.Thischaracterizationinsurescontinuedpaymenttousofrentalpaymentsduringthebankruptcy.AllpaymentsduetousfromtheEXXITenanthavebeentimelypaid.

The Ultra Wyoming, lessee of the Pinedale LGS, and Ultra Petroleum, the guarantor of Ultra Wyoming's obligations as tenant under the Pinedale LeaseAgreement,bothfiledforbankruptcyonApril29,2016.NomotionshavebeenfiledinthatbankruptcyproceedingrelatingtothePinedaleLeaseAgreementorourstatusasacriticalvendor.AllpaymentsduetousunderthePinedaleLeaseAgreementhavebeenmadetodate.

CurrentinformationabouttheEXXIbankruptcyandacompletediscussionoftherisksrelatedtoEXXI'sbusinesscanbefoundinEXXI'sQuarterlyReportonForm10-Qforthequarter endedMarch31,2016,andits AnnualReport onForm10-KfortheyearendedJune30,2015.Current informationabouttheUltraPetroleumbankruptcyandacompletediscussionoftherisksrelatedtoUltraPetroleum'sbusinesscanbefoundinitsAnnualReportonForm10-KforthefiscalyearendedDecember31,2015.FurtherupdatesrelatedtoUltraPetroleumandEXXImaybefoundintheirsubsequentreportsfiledwiththeSEC.

Additional Risks Related to Our Real Estate and Energy Infrastructure Investments

We are subject to risks involved in single tenant leases.

Weintendtofocusouracquisitionactivitiesonrealpropertiesthataretriple-netleasedtosingletenants.Therefore,thefinancialfailureof,orotherdefaultby,asingle tenant under its lease: (i) is likely to cause a significant reduction in the operating cash flowgenerated by the property leased to that tenant, (ii) mightdecreasethevalueofthatproperty,and(iii)couldexposeusto100percentofallapplicableoperatingcosts.

Inaddition,ifwedeterminethatarenewalofaleasewithanypresentorfuturetenantofanyofourenergyinfrastructureassetsisnotinthebestinterestsofourstockholders,ifatenantdeterminesitnolongerwishestobethetenantunderaleaseuponitsexpiration,ifwedesiretoterminatealeaseasaresultofabreachofthatleasebythetenantorifweloseanytenantasaresultofsuchtenant’sbankruptcy,thenineachcircumstancewewouldneedtoidentifyanewtenantforthelease.Wemaynotbeabletoidentifyanewtenant,asinterestinleasingcertainofourassetswouldbedependentonownershipofaninterestinnearbymineralrights.Inaddition,anynewtenantwouldneedtobeaqualifiedandreputableoperatorofsuchenergyinfrastructureassetswiththewherewithalandcapabilityofactingasourtenant.Thereisnoassurancethatwewouldbeabletoidentifyatenantthatmeetsthesecriteria,orthatwecouldenterintoanewleasewithanysuchtenantontermsthatareasfavorableastheleasetermsthatwereinplacewiththepriortenant.

49


If a tenant becomes insolvent or declares bankruptcy and such action results in a rejection of the lease, or in the sale-leaseback transaction beingchallenged as a fraudulent transfer or re-characterized in the lessee company’s bankruptcy proceeding, our business, financial condition and cashflows could be adversely affected.

Weenter into sale-leaseback transactions, wherebywepurchase anenergyinfrastructure property andthensimultaneously lease the sameproperty backto theseller.Ifalesseecompanybecomesinsolventordeclaresbankruptcy,ourbusinesscouldbeadverselyaffectedbyoneorbothofthefollowing:

• Asale-leasebacktransactionmaybere-characterizedaseitherafinancingorajointventureinabankruptcyorinsolvencyproceeding.Ifthesale-leasebackwerere-characterizedasafinancing,wemightnotbeconsideredtheownerofthesubjectproperty,andasaresultwouldhavethestatusofa creditor in relation to the lessee company. In that event, we would no longer have the right to sell or encumber our ownership interest in theproperty.Instead,wewouldhaveaclaimagainstthelesseecompanyfortheamountsowedunderthelease.Althoughwebelieveeachofourleaseagreementsconstitutesatrueleasethatshouldnotbere-characterized,thereisnoguarantyacourtwouldagree.Intheeventofre-characterization,our claimunder a lease agreement would either be secured or unsecured. Wewill take steps to create and perfect a security interest in our leaseagreementsuchthatourclaimwouldbesecuredintheeventofare-characterization,butsuchattemptscouldbesubjecttochallengebythedebtororcreditorsandthereisnoassuranceacourtwouldfindourclaimtobesecured.Thelesseecompany/debtorunderthisscenario,mighthavetheabilitytorestructuretheterms,interestrateandamortizationscheduleofitsoutstandingbalance.Ifapprovedbythebankruptcycourt,wecouldbeboundbythenewterms,andpreventedfromforeclosinganylienontheproperty.If thesale-leasebackwerere-characterizedasajointventure,weandthelesseecompanycouldbetreatedasco-venturerswithregardtotheproperty.Asaresult,wecouldbeheldliable,undersomecircumstances,fordebtsincurredbythelesseecompanyrelatingtotheproperty.

• Subject to the re-characterization risk above, the lessee could either assume or reject the lease in a bankruptcy proceeding. Generally, the lesseewouldberequiredtomakerentpaymentstousduringitsbankruptcyuntilitrejectsthelease(forleasesthatarepersonalpropertyleases,thelesseeneednotmakerentalpaymentsthatarisefromthepetitiondateuntil60daysaftertheorderforreliefisenteredinthebankruptcycase).Ifthelesseeassumesthelease,thebankruptcycourtwouldnotbeabletochangetherentalamountoranyotherleaseprovisionthatcouldfinanciallyimpactus.However,ifthelesseerejectsthelease,thefacilitywouldbereturnedtous,thoughtheremaybeadelayasaresultofthebankruptcyinsuchreturn.Wemaynotbeabletoidentifyanewtenant,asinterestinleasingcertainofourassetswouldbedependentonownershipofaninterestinnearbymineralrights.Inaddition,anynewtenantwouldneedtobeaqualifiedreputableoperatorofsuchenergyinfrastructureassetswiththewherewithalandcapabilityofactingasourtenant.Thereisnoassurancethatwewouldbeabletoidentifyatenantthatmeetsthesecriteria,orthatwecouldenterintoanewleasewithanysuchtenantontermsthatareasfavorableastheleasetermsthatwereinplacewiththepriortenant.Inthatevent,ifwewereable tore-lease theaffected facility toa newtenant onlyonunfavorable termsor after a significant delay, wecouldlosesomeor all of therevenuefromthatfacilityforanextendedperiodoftime.Iftheleaseagreementisrejected,ourclaimagainstthelesseeand/orparentguarantorcouldbe subject to a statutory cap under section 502(b)(6) of the Bankruptcy Code to the extent the lease agreement is deemed to be a lease for realpropertyratherthanaleaseforpersonalproperty.Suchcapgenerallylimitstheamountofaclaimforlease-baseddamagesintheeventofarejectiontothegreaterofoneyear’srentor15percentoftherentreservedfortheremainingleaseterm,nottoexceed3years.Webelievethatanyofourleaseagreementswouldbecharacterizedasarealpropertyleaseratherthanapersonalpropertylease,thoughacourtcouldholdtothecontrary.

50


ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ThefollowingtablepresentsinformationwithrespecttopurchasesofcommonstockmadebytheCompanyanditsaffiliatesduringthethreemonthsendedJune30,2016:

Period Total Number of Shares

Purchased (1) Average Price Paid per Share(2)

Total Number of SharesPurchased as Part of a

Publicly Announced Plan

Maximum Number of Sharesthat May Yet Be Purchased

Under the Plan (3)

April1–30,2016 23,400 $ 20.23 23,400 447,467

May1–31,2016 67,563 $ 23.29 67,213 331,013

June1–30,2016 240 $ 26.06 — 275,939

Total 91,203 $ 22.51 90,613 —

(1)Includes90,613sharesrepurchasedbytheCompanypursuanttotheoneyear,$10millioncommonstockrepurchaseplanannouncedbytheCompany'sBoardofDirectorsonDecember31,2015.AspreviouslydisclosedintheirForm4filingswiththeSEC,alsoincludes(i)oneopenmarketpurchasebyDavidJ.Schulte,theCompany’sPresidentandChiefExecutiveOfficer,of350sharesat$22.80pershareonMay26,2016and(ii)oneopenmarketpurchasebyRebeccaM.Sandring,theCompany’sChiefAccountingOfficer,of240sharesat$26.06pershareonJune14,2016.(2)Representstheweightedaveragepricepershareofthecommonstockontherepurchasedates.(3)Representsthemaximumnumberofsharesofcommonstockthatmayberepurchased,asoftheendofeachrespectiveperiod,pursuanttotheDecember2015planreferencedinNote(1)priortoitsexpirationinDecember2016.Suchmaximumnumberofshareshasbeenestimated,basedontheclosingmarketpricefortheCompany’scommonstockontheNewYorkStockExchangeon(a)April29,2016($21.29pershare),(b)May31,2015($24.05pershare),and(c)June30,2016($28.85pershare).

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Notapplicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

Exhibit No. Description of Document10.2.5 LetterAgreement,datedMay9,2016,concerningManagementFeeforMarch31,2016underManagementAgreement,datedMay8,2015andeffectiveas

ofMay1,2015,betweenCorridorInfraTrustManagement,LLCandCorEnergyInfrastructureTrust,Inc.(1)10.2.6 LetterAgreement,datedJune30,2016,concerningIncentiveFeeforJune30,2016underManagementAgreement,datedMay8,2015andeffectiveasof

May1,2015,betweenCorridorInfraTrustManagement,LLCandCorEnergyInfrastructureTrust,Inc.-filedherewith10.25 WaivertoLease,datedApril13,2016,byandbetweenGrandIsleCorridor,LPandEnergyXXIGIGSServices,LLC(2)12.1 ComputationofRatioofEarningstoCombinedFixedChargesandPreferredStockDividends-filedherewith31.1 CertificationbyChiefExecutiveOfficerpursuanttoExchangeActRule13a-14(a),asadoptedpursuanttoSection302oftheSarbanes-OxleyActof2002-

filedherewith31.2 CertificationbyChiefAccountingOfficerpursuanttoExchangeActRule13a-14(a),asadoptedpursuanttoSection302oftheSarbanes-OxleyActof2002-

filedherewith32.1 CertificationbyChiefExecutiveOfficerandChiefFinancialOfficerpursuantto18U.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-

OxleyActof2002-furnishedherewith101 ThefollowingmaterialsfromCorEnergyInfrastructureTrust,Inc.’sQuarterlyReportonForm10-QforthethreeandsixmonthsendedJune30,2016,

formattedinXBRL(ExtensibleBusinessReportingLanguage):(i)theConsolidatedBalanceSheets,(ii)theConsolidatedStatementsofIncomeandComprehensiveIncome,(iii)theConsolidatedStatementsofEquity,(iv)theConsolidatedStatementsofCashFlowsand(iv)theNotestoConsolidatedFinancialStatements-furnishedherewith

(1) IncorporatedbyreferencefromtheRegistrant'sQuarterlyReportonForm10-QforthequarterendedMarch31,2016,filedMay10,2016.(2) IncorporatedbyreferencefromtheRegistrant'sCurrentReportonForm8-KfiledApril14,2016.

51


CORENERGY INFRASTRUCTURE TRUST, INC.

SIGNATURES

PursuanttotherequirementsofSection13or15(d)oftheSecuritiesExchangeActof1934,asamended,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized.

CORENERGY INFRASTRUCTURE TRUST, INC. (Registrant)

By: /s/RebeccaM.Sandring Rebecca M. Sandring Chief Accounting Officer, Treasurer and Secretary (Principal Accounting Officer and Principal Financial Officer) August 9, 2016

By: /s/DavidJ.Schulte David J. Schulte Chief Executive Officer and Director (Principal Executive Officer) August 9, 2016

June30,2016

CorEnergyInfrastructureTrust,Inc.1100WalnutStreet,Suite3350KansasCity,Missouri64106

Re:Management Agreement for CorEnergy Infrastructure Trust, Inc.

LadiesandGentlemen:

ReferenceismadetothatcertainManagementAgreement,datedasofMay8,2015andeffectiveasofMay1,2015,byandbetween CorEnergy Infrastructure Trust, Inc., a Maryland corporation (the “Company ”), and Corridor InfraTrust Management,LLC, a Delaware limited liability company (“Manager ”) (as such agreement has been, and may be further, amended, restated,supplementedor otherwise modifiedfromtimetotime, the“Management Agreement”). Capitalizedtermsusedandnot definedhereinareusedasdefinedintheManagementAgreement.TheCompanyandtheManagerhaveenteredintothisLetterAgreementto waive a portion of the Incentive Fee set forth in Section 8(b) of the Management Agreement applicable to the dividend paidduringthecalendarquarterendingJune30,2016.ThisletterinnowaysupersedesourMarch30,2016letteragreementconcerningtheManagementFeecalculation.

ThisletterdocumentsthattheManagerhasrecommended,andtheCompanyhasagreed,thattheManagershallonlybepaidanIncentiveFeeof$94,818asaresultofthedividendpaidduringtheCompany’sJune30,2016calendarquarter.ThisagreeduponincentivefeepaymentconstitutesawaiverbytheManagerof$54,305ofIncentiveFeethatwouldotherwisebeduetotheManagerfromtheCompany.

Theforegoingwaivershallnotapplytoanypriororfutureperiods,althoughtheManagerreservestherighttowaiveinthefutureanyIncentiveFeepaymenttowhichitmaybeentitledforoneormorefuturefiscalquartersoftheCompany.

TheCompanyandtheManagermutuallyacknowledgeandagreethatthismodificationtotheIncentiveFeepaymentrightrepresentsadiscretionaryactiononthepartoftheManagerthatisnotrequiredunderthetermsoftheManagementAgreementandthat, except as specifically set forth herein and as modified in our March 30, 2016 letter agreement, all provisions of theManagementAgreementshallremaininfullforceandeffectandshallnotbeaffectedbythisletter.

Verytrulyyours, CORRIDOR INFRATRUST MANAGEMENT, LLC By:/s/RichardC.Green,Jr. Name:RichardC.Green,Jr.,ManagingDirector

Agreed and accepted:

CORENERGY INFRASTRUCTURE TRUST, INC.

By:/s/DavidJ.Schulte

Name:DavidJ.Schulte,President

1100WalnutStreet,Suite3350,KansasCity,MO64106|Main:816.875.3705|Fax:816.875.5875|corridortrust.com

EXHIBIT 12.1 - Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends -CorEnergy Infrastructure Trust, Inc.

For the Six MonthsEnded June 30, For the Years Ended December 31,

For the YearsEnded

November 30,

One-MonthTransition

Period EndedDecember 31,

2016 2015 2014 2013 2012 2012

Earnings: Pre-tax income from continuing operations beforeadjustment for income or loss from equityinvestees $ 11,999,766 $ 11,782,422 $ 6,973,693 $ 2,967,257 $ 19,857,050 $ (515,658)

Fixedcharges(1) $ 7,466,821 $ 9,781,184 $ 3,675,122 $ 3,288,378 $ 81,123 $ 416,137

Amortizationofcapitalizedinterest $ — $ — $ — $ — $ — $ —

Distributedincomeofequityinvestees $ 589,742 $ 1,270,754 $ 1,836,783 $ 584,814 $ (279,395) $ 2,325Pre-taxlossesofequityinvesteesforwhichchargesarisingfromguaranteesareincludedinfixedcharges $ — $ — $ — $ — $ — $ —

Subtract:

Interestcapitalized $ — $ — $ — $ — $ — $ —Preferencesecuritydividendrequirementsofconsolidatedsubsidiaries $ — $ — $ — $ — $ — $ —Noncontrollinginterestinpre-taxincomeofsubsidiariesthathavenotincurredfixedcharges $ — $ — $ — $ — $ — $ —

Earnings 20,056,329 22,834,360 12,485,598 6,840,449 19,658,778 (97,196)

Combined Fixed Charges and PreferenceDividends:

Fixedcharges(1) $ 7,466,821 $ 9,781,184 $ 3,675,122 $ 3,288,378 $ 81,123 $ 416,137

Preferredsecuritydividend(2) 2,074,218 3,848,828 — — — —

Combined fixed charges and preference dividends 9,541,039 13,630,012 3,675,122 3,288,378 81,123 416,137

Ratio of earnings to fixed charges 2.69 2.33 3.40 2.08 242.70 (0.23)Ratio of earnings to combined fixed charges andpreference dividends 2.10 1.68 3.40 2.08 242.70 (0.23)

Combined Fixed Charges Deficiency (513,333)(1) Fixedchargesconsistofinterestexpense,asdefinedunderU.S.generallyacceptedaccountingprinciples,onallindebtedness(2)ThislinerepresentstheamountofpreferredstockdividendsaccumulatedasofJune30,2016.

Exhibit 31.1CERTIFICATIONS

I,DavidJ.Schulte,certifythat:1. IhavereviewedthisQuarterlyReportonForm10-QofCorEnergyInfrastructureTrust,Inc.;2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements

made,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancial

condition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;4. Theregistrant’sothercertifyingofficer(s)andIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchange

ActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c) Evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d) Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smostrecentfiscalquarter(theregistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5. Theregistrant’sothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontroloverfinancialreporting.

Date:August9,2016 /s/DavidJ.Schulte DavidJ.Schulte ChiefExecutiveOfficer

Exhibit 31.2CERTIFICATIONS

I,RebeccaM.Sandring,certifythat:1. IhavereviewedthisQuarterlyReportonForm10-QofCorEnergyInfrastructureTrust,Inc.;2. Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements

made,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;3. Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancial

condition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;4. Theregistrant’sothercertifyingofficer(s)andIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchange

ActRules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantandhave:

(a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethatmaterialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduringtheperiodinwhichthisreportisbeingprepared;

(b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,toprovidereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples;

(c) Evaluatedtheeffectivenessoftheregistrant’sdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthedisclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

(d) Disclosedinthisreportanychangeintheregistrant’sinternalcontroloverfinancialreportingthatoccurredduringtheregistrant’smostrecentfiscalquarter(theregistrant’sfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrant’sinternalcontroloverfinancialreporting;and

5. Theregistrant’sothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,totheregistrant’sauditorsandtheauditcommitteeoftheregistrant’sboardofdirectors(orpersonsperformingtheequivalentfunctions):

(a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelytoadverselyaffecttheregistrant’sabilitytorecord,process,summarizeandreportfinancialinformation;and

(b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrant’sinternalcontroloverfinancialreporting.

Date:August9,2016 /s/RebeccaM.Sandring RebeccaM.Sandring ChiefAccountingOfficer/Treasurer

Exhibit 32.1

SECTION 906 CERTIFICATION

PursuanttoU.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2001,theundersignedofficersofCorEnergyInfrastructureTrust,Inc.(the“Company”),herebycertifythattheQuarterlyReportonForm10-QfortheperiodendedJune30,2016,filedwiththeSecuritiesandExchangeCommissiononthedatehereof(the“Report”),fullycomplieswiththerequirementsofSection13(a)or15(d),asapplicable,oftheSecuritiesExchangeActof1934,asamended,andthattheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

/s/DavidJ.SchulteDavidJ.SchulteChiefExecutiveOfficerDate:August9,2016/s/RebeccaM.SandringRebeccaM.SandringChiefAccountingOfficer,TreasurerDate:August9,2016

Theforegoingcertificationisbeingfurnishedsolelypursuantto18U.S.C.Section1350andisnotbeingfiledaspartofthisreport.A signed original of thiswritten statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities andExchange Commission or its staff upon request.

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