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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 September 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

AsofOctober31,2016,theregistranthad11,876,389commonsharesoutstanding.

CorEnergy Infrastructure Trust, Inc.FORM 10-Q

FOR THE QUARTER ENDED SEPTEMBER 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 15 4. FinancingNotesReceivable 18 5. VariableInterestEntities 18 6. IncomeTaxes 19 7. PropertyandEquipment 20 8. ManagementAgreement 21 9. FairValue 21 10. CreditFacilities 24 11. ConvertibleDebt 26 12. Stockholders'Equity 26 13. EarningsPerShare 27 14. SubsequentEvents 27 Item2. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 29 Item3. QuantitativeandQualitativeDisclosuresaboutMarketRisk 46 Item4. ControlsandProcedures 47 PART II. OTHER INFORMATION 47 Item1. LegalProceedings 47 Item1A. RiskFactors 47 Item2. UnregisteredSalesofEquitySecuritiesandUseofProceeds 49 Item3. DefaultsUponSeniorSecurities 49 Item4. MineSafetyDisclosures 49 Item5. OtherInformation 49 Item6. Exhibits 50

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-2016930X10Q_HTM_S7D9706292E20ACA70B217ABA45167347

includealloftheinformationandnotesrequiredbygenerallyacceptedaccountingprinciplesforcompletefinancialstatements.IntheopinionofManagement,alladjustments(consistingofnormalrecurringaccruals)considerednecessaryforafairpresentationhavebeenincluded.OperatingresultsfortheninemonthsendedSeptember30,2016arenotnecessarilyindicativeoftheresultsthatmaybeexpectedfortheyearendedDecember31,2016orforanyotherinterimorannualperiod. Forfurther information, refer to theconsolidatedfinancial statements andfootnotes thereto includedintheCorEnergyInfrastructure Trust, Inc. AnnualReportonForm10-K,fortheyearendedDecember31,2015.

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: FASBAccountingStandardsCodification

Bbls: standardbarrelcontaining42U.S.gallons

BB Intermediate: BlackBisonIntermediateHoldings,LLC,theholdingcompanyofBlackBisonWaterServices

Black Bison Notes: thefinancingnotesbetweenCorridorBisonandCorEnergyBBWSandBBWS

BBWS: BlackBisonWaterServices,LLC,theborroweroftheBlackBisonfinancingnotes,aswellasalloftheothercollateralsecuringtheBlackBisonLoans

CorEnergy: CorEnergyInfrastructureTrust,Inc.(NYSE:CORR)

CorEnergy BBWS: CorEnergyBBWS,Inc.,awholly-ownedtaxableREITsubsidiaryofCorEnergy

Convertible Notes: theCompany's7.00%ConvertibleSeniorNotesDue2020

Corridor: CorridorInfraTrustManagement,LLC,theCompany'sexternalmanagerpursuanttotheManagementAgreement

Corridor Bison: CorridorBison,LLCawholly-ownedsubsidiaryofCorEnergy

Corridor MoGas: CorridorMoGas,Inc.,awholly-ownedtaxableREITsubsidiaryofCorEnergyandtheholdingcompanyofMoGas,UnitedPropertySystemsandCorEnergyPipelineCompany,LLC

Corridor Private: CorridorPrivateHoldings,Inc.,anindirectwholly-ownedtaxableREITsubsidiaryofCorEnergy

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

EXXI: EnergyXXILtd(OTCPink:EXXIQ)

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

FASB: FinancialAccountingStandardsBoard

FERC: FederalEnergyRegulatoryCommission

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TableofContents GlossaryofDefinedTerms

GLOSSARY OF DEFINED TERMS ( Continued from previous page )

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

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

Lightfoot: collectively,LightfootCapitalPartners,LPandLightfootCapitalPartnersGPLLC

Management Agreement: referencestotheManagementAgreementasineffectpriortoMay1,2015meantheManagementAgreementthatbecameeffectiveJuly 1, 2013, as amended effective January 1, 2014, while references to the Management Agreement as in effect on and after May 1, 2015 mean the newManagementAgreemententeredintoMay8,2015,effectiveasofMay1,2015,betweentheCompanyandCorridor

MMBTu: MillionBritishThermalUnits,ameasurementofnaturalgas

MoGas: MoGasPipelineLLC,anindirectwholly-ownedsubsidiaryofCorEnergy

MoGas Pipeline System: anapproximately263-mileinterstatenaturalgaspipelinesysteminandaroundSt.LouisandextendingintocentralMissouri,ownedandoperatedbyMoGas

MoGas Revolver: a$3millionsecuredrevolvinglineofcreditfacilityattheMoGassubsidiarylevelwithRegionsBank

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 gatheringfacilitieslocatedinthePinedaleAnticlineinWyoming,ownedbyPinedaleLPandtriple-netleasedtoawholly-ownedsubsidiaryofUltraPetroleum

Pinedale Lease Agreement: theDecember2012agreementpursuanttowhichthePinedaleLGSassetsaretriple-netleasedtoawhollyownedsubsidiaryofUltraPetroleum

Pinedale LP: PinedaleCorridor,LP

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GLOSSARY OF DEFINED TERMS ( Continued from previous page )

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$105millionsecuredrevolvinglineofcreditfacilitywithRegionsBank

Regions Credit Facility: theCompany's$45millionsecuredTermLoan, together withtheupsized$105millionRegionsRevolver andthe$3millionMoGasRevolverwithRegionsBank

Regions Term Loan: theCompany's$45millionsecuredtermloanwithRegionsBankthatispartoftheRegionsCreditFacility

REIT: realestateinvestmenttrust

SEC: SecuritiesandExchangeCommission

Series A Preferred: the Company's 7.375% Series A Cumulative Redeemable Preferred Stock, par value $0.001 per share, of which there currently areoutstanding22,500sharesrepresentedby2,250,000depositaryshares,eachrepresenting1/100thofawholeshareofSeriesAPreferred

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,includingtheexerciseoftherightsandremediesofbankruptentities;• theimpactoflawsandgovernmentalregulationsapplicabletocertainofourinfrastructureassets,includingadditionalcostsimposedonourbusinessor

otheradverseimpactsasaresultofanyunfavorablechangesinsuchlawsorregulations;• thelossofanymemberofourmanagementteam;• ourcontinuedabilitytoaccessthedebtandequitymarkets;• ourabilitytosuccessfullyimplementourselectiveacquisitionstrategy,includingtheinabilitytopursueourstrategyduetounresolvedissuesimpacting

ourcurrentsignificanttenantsorborrowers;• 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., Risk Factors in our Annual Report on Form10-Kfor the year endedDecember 31, 2015 , filed with the Securities andExchangeCommission(SEC)onMarch14,2016andPartII,Item1A.,RiskFactors,inthisreport.

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PART I. FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTS

CorEnergy Infrastructure Trust, Inc.CONSOLIDATED BALANCE SHEETS

September 30, 2016 December 31, 2015Assets (Unaudited)

Leasedproperty,netofaccumulateddepreciationof$47,520,455and$33,869,263 $ 495,640,396 $ 509,226,215

Propertyandequipment,netofaccumulateddepreciationof$8,454,299and$5,948,988 117,534,873 119,629,978

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

Otherequitysecurities,atfairvalue 9,465,736 8,393,683

Cashandcashequivalents 10,107,754 14,618,740

Accountsandotherreceivables 16,358,597 10,431,240

Deferredcosts,netofaccumulatedamortizationof$1,984,580and$2,717,609 3,408,620 4,187,271

Prepaidexpensesandotherassets 614,788 491,024

Deferredtaxasset 1,589,558 1,606,976

Goodwill 1,718,868 1,718,868

Total Assets $ 657,939,190 $ 677,979,621

Liabilities and Equity

Securedcreditfacilities,net(including$9,574,465and$0withrelatedparty) 91,698,387 105,440,842

Unsecuredconvertibleseniornotes,netofdiscountanddebtissuancecostsof$2,951,902and$3,576,090 111,048,098 111,423,910

Assetretirementobligation 13,381,604 12,839,042

Accountspayableandotheraccruedliabilities 4,610,452 2,317,774

Managementfeespayable 1,743,599 1,763,747

Unearnedrevenue 343,295 —

Total Liabilities $ 222,825,435 $ 233,785,315

Equity SeriesACumulativeRedeemablePreferredStock7.375%,$56,250,000liquidationpreference($2,500pershare,$0.001parvalue),10,000,000authorized;22,500issuedandoutstandingatSeptember30,2016,andDecember31,2015 $ 56,250,000 $ 56,250,000Capitalstock,non-convertible,$0.001parvalue;11,876,389and11,939,697sharesissuedandoutstandingatSeptember30,2016,andDecember31,2015(100,000,000sharesauthorized) 11,876 11,940

Additionalpaid-incapital 351,754,151 361,581,507

Accumulatedothercomprehensiveincome(loss) (14,235) 190,797

Total CorEnergy Equity 408,001,792 418,034,244

Non-controllingInterest 27,111,963 26,160,062

Total Equity 435,113,755 444,194,306

Total Liabilities and Equity $ 657,939,190 $ 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 Nine Months Ended

September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015

Revenue

Leaserevenue $ 16,996,155 $ 16,966,056 $ 50,988,299 $ 31,102,036

Transportationanddistributionrevenue 5,119,330 3,557,096 15,283,461 10,753,810

Financingrevenue — 182,604 162,344 1,511,900

Salesrevenue — 1,434,694 — 5,442,257

Total Revenue 22,115,485 22,140,450 66,434,104 48,810,003

Expenses

Transportationanddistributionexpenses 1,482,161 1,120,862 4,222,792 3,590,855

CostofSales — 382,851 — 2,201,139

Generalandadministrative 3,021,869 2,837,762 9,084,961 7,311,610

Depreciation,amortizationandAROaccretionexpense 5,744,266 5,836,665 16,778,109 13,381,483

Provisionforloanlossanddisposition — 7,951,137 5,014,466 7,951,137

Total Expenses 10,248,296 18,129,277 35,100,328 34,436,224

Operating Income $ 11,867,189 $ 4,011,173 $ 31,333,776 $ 14,373,779

Other Income (Expense)

Netdistributionsanddividendincome $ 277,523 $ 241,563 $ 867,265 $ 1,025,381

Netrealizedandunrealizedgain(loss)onotherequitysecurities 1,430,858 (1,408,751) 1,001,771 (915,568)

Interestexpense (3,520,856) (3,854,913) (10,987,677) (6,129,073)

Total Other Income (Expense) (1,812,475) (5,022,101) (9,118,641) (6,019,260)

Income (loss) before income taxes 10,054,714 (1,010,928) 22,215,135 8,354,519

Taxes

Currenttaxexpense(benefit) 95,125 105,020 (378,954) 645,255

Deferredtaxexpense(benefit) 388,027 (1,953,973) 17,418 (2,222,706)

Income tax expense (benefit), net 483,152 (1,848,953) (361,536) (1,577,451)

Net Income 9,571,562 838,025 22,576,671 9,931,970

Less:NetIncomeattributabletonon-controllinginterest 340,377 410,806 999,838 1,232,985

Net Income attributable to CorEnergy Stockholders $ 9,231,185 $ 427,219 $ 21,576,833 $ 8,698,985

Preferreddividendrequirements 1,037,109 1,037,109 3,111,327 2,811,718

Net Income (loss) attributable to Common Stockholders $ 8,194,076 $ (609,890) $ 18,465,506 $ 5,887,267

NetIncome $ 9,571,562 $ 838,025 $ 22,576,671 $ 9,931,970

Othercomprehensiveincome(loss):

ChangesinfairvalueofqualifyinghedgesattributabletoCorEnergystockholders 3,039 (223,176) (205,032) (481,081)

Changesinfairvalueofqualifyinghedgesattributabletonon-controllinginterest 710 (52,180) (47,937) (112,479)

Net Change in Other Comprehensive Income (Loss) $ 3,749 $ (275,356) $ (252,969) $ (593,560)

Total Comprehensive Income 9,575,311 562,669 22,323,702 9,338,410

Less:Comprehensiveincomeattributabletonon-controllinginterest 341,087 358,626 951,901 1,120,506

Comprehensive Income attributable to CorEnergy Stockholders $ 9,234,224 $ 204,043 $ 21,371,801 $ 8,217,904

Earnings(Loss)PerCommonShare:

Basic $ 0.69 $ (0.05) $ 1.55 $ 0.57

Diluted $ 0.68 $ (0.05) $ 1.55 $ 0.57

WeightedAverageSharesofCommonStockOutstanding:

Basic 11,872,729 11,924,148 11,909,431 10,266,380

Diluted 15,327,274 11,924,148 11,909,431 10,266,380

Dividendsdeclaredpershare $ 0.750 $ 0.675 $ 2.250 $ 2.000See accompanying Notes to Consolidated Financial Statements.

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

Netincome — — — — — 21,576,833 999,838 22,576,671

Netchangeincashflowhedges — — — — (205,032) — (47,937) (252,969)

Totalcomprehensiveincome(loss) — — — — (205,032) 21,576,833 951,901 22,323,702

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

SeriesApreferredstockdividends — — — — — (3,111,327) — (3,111,327)

Commonstockdividends — — — (8,339,820) — (18,465,506) — (26,805,326)Commonstockissuedunderdirector'scompensationplan 2,551 2 — 59,998 — — — 60,000Reinvestmentofdividendspaidtocommonstockholders 24,754 25 — 494,226 — — — 494,251Balance at September 30, 2016(Unaudited) 11,876,389 $ 11,876 $ 56,250,000 $ 351,754,151 $ (14,235) $ — $ 27,111,963 $ 435,113,755

See accompanying Notes to Consolidated Financial Statements.

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

For the Nine Months EndedSeptember 30, 2016 September 30, 2015

Operating ActivitiesNetIncome $ 22,576,671 $ 9,931,970Adjustmentstoreconcilenetincometonetcashprovidedbyoperatingactivities:

Deferredincometax,net 17,418 (2,222,706)Depreciation,amortizationandAROaccretion 18,334,719 14,757,322Provisionforloanloss 5,014,466 7,951,137

Gainonrepurchaseofconvertibledebt (71,702) —Netdistributionsanddividendincome,includingrecharacterizationofincome (117,004) (371,323)Netrealizedandunrealized(gain)lossonotherequitysecurities (1,001,771) 915,568Unrealizedgainonderivativecontract (105,567) (48,494)Commonstockissuedunderdirectorscompensationplan 60,000 90,000Changesinassetsandliabilities:Increaseinaccountsandotherreceivables (5,434,028) (1,326,469)Decrease(increase)infinancingnoteaccruedinterestreceivable 95,114 (488,880)Decrease(increase)inprepaidexpensesandotherassets 49,227 (70,846)(Decrease)increaseinmanagementfeepayable (20,148) 628,676Increaseinaccountspayableandotheraccruedliabilities 1,913,875 1,877,591Increase(decrease)inunearnedrevenue 343,295 (711,230)

Netcashprovidedbyoperatingactivities $ 41,654,565 $ 30,912,316Investing Activities

Proceedsfromassetsandliabilitiesheldforsale 644,934 7,678,246Deferredleasecosts — (329,220)Acquisitionexpenditures — (251,113,605)Purchasesofpropertyandequipment,net (475,581) (113,262)Proceedsfromassetforeclosureandsale 223,451 —Increaseinfinancingnotesreceivable (202,000) (39,248)Returnofcapitalondistributionsreceived 3,393 87,995

Netcashprovided(used)byinvestingactivities $ 194,197 $ (243,829,094)Financing Activities

Debtfinancingcosts (193,000) (1,342,288)NetofferingproceedsonSeriesApreferredstock — 54,210,476Netofferingproceedsoncommonstock — 73,184,680Netofferingproceedsonconvertibledebt — 111,262,500

Repurchasesofcommonstock (2,041,851) —

Repurchasesofconvertibledebt (899,960) —DividendspaidonSeriesApreferredstock (3,111,327) (2,466,015)Dividendspaidoncommonstock (26,311,075) (19,929,939)Distributionstonon-controllinginterest — (2,030,715)Advancesonrevolvinglineofcredit 44,000,000 45,392,332Paymentsonrevolvinglineofcredit — (77,533,609)Proceedsfromtermdebt — 45,000,000

Principalpaymentsonsecuredcreditfacilities (57,802,535) (3,546,000)Netcash(used)providedbyfinancingactivities $ (46,359,748) $ 222,201,422

NetChangeinCashandCashEquivalents $ (4,510,986) $ 9,284,644CashandCashEquivalentsatbeginningofperiod 14,618,740 7,578,164CashandCashEquivalentsatendofperiod $ 10,107,754 $ 16,862,808See 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 Nine Months Ended

September 30, 2016 September 30, 2015Supplemental Disclosure of Cash Flow InformationInterestpaid $ 7,829,619 $ 2,657,567Incometaxespaid(netofrefunds) $ 42,200 $ 608,754

Non-Cash Investing ActivitiesChangeinaccountsandotherreceivables $ (450,000) $ —Changeinaccountspayableandaccruedexpensesrelatedtoacquisitionexpenditures $ — $ (448,780)Changeinaccountspayableandaccruedexpensesrelatedtoissuanceoffinancingandothernotesreceivable $ — $ (39,248)

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

Non-Cash Financing ActivitiesChangeinaccountspayableandaccruedexpensesrelatedtotheissuanceofcommonequity $ — $ (72,685)Changeinaccountspayableandaccruedexpensesrelatedtodebtfinancingcosts $ — $ 35,472Reinvestmentofdistributionsbycommonstockholdersinadditionalcommonshares $ 494,251 $ 471,706

See accompanying Notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)September 30, 2016

1. INTRODUCTION AND BASIS OF PRESENTATION

Introduction

CorEnergyInfrastructureTrust,Inc.("CorEnergy"),wasorganizedasaMarylandcorporationandcommencedoperationsonDecember8,2005.TheCompany'scommonsharesarelistedontheNewYorkStockExchangeunderthesymbol“CORR”andthedepositarysharesrepresentingourSeriesAPreferredarelistedontheNewYorkStockExchangeunderthesymbol"CORRPrA"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 realproperty mortgage transactions provide the energy company with a source of capital that is an alternative to other sources such as corporate borrowing, bondofferings,orequityofferings.Manyofourleasescontainparticipationfeaturesinthefinancialperformanceorvalueoftheunderlyinginfrastructurerealpropertyasset.Thetriple-netleasestructurerequiresthatthetenantpayalloperatingexpensesofthebusinessconductedbythetenant,includingrealestatetaxes,insurance,utilities,andexpensesofmaintainingtheassetingoodworkingorder.Weconsiderourinvestmentsintheseenergyinfrastructureassetstobeasinglebusinesssegmentandreportthemaccordinglyinourfinancialstatements.

In2013wequalified,andinMarch2014elected(effectiveasofJanuary1,2013),tobetreatedasaREITforfederalincometaxpurposes.Becausecertainofourassets may not produce REIT-qualifying income or be treated as interests in real property, those assets are held in wholly-owned Taxable REIT Subsidiaries("TRSs")inordertolimitthepotentialthatsuchassetsandincomecouldpreventusfromqualifyingasaREIT.OuruseofTRSsenablesustocontinuetoengageincertainbusinesseswhilecomplyingwithREITqualificationrequirementsandalsoallowsustoretainincomegeneratedbythesebusinessesforreinvestmentwithout therequirement of distributingthoseearnings. In thefuture, wemayelect to reorganize andtransfer certain assets or operations fromour TRSstotheCompanyorothersubsidiaries,includingqualifiedREITsubsidiaries.

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

TheaccompanyingconsolidatedfinancialstatementsincludeCorEnergyaccountsandtheaccountsofourwhollyownedsubsidiariesandhavebeenpreparedinaccordance 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.

OperatingresultsfortheninemonthsendedSeptember30,2016,arenotnecessarilyindicativeoftheresultsthatmaybeexpectedfortheyearendingDecember31,2016oranyotherinterimorannualperiod.TheseconsolidatedfinancialstatementsandManagement'sDiscussionandAnalysisoftheFinancialConditionandResultsofOperationsshouldbereadinconjunctionwith

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ourAnnualReportonForm10-K,fortheyearendedDecember31,2015,filedwiththeSEConMarch14,2016(the"2015CorEnergy10-K").

2. SIGNIFICANT ACCOUNTING POLICIES

TheCompanyhasprovidedadiscussionofsignificantaccountingpoliciesinthe2015CorEnergy10-K.Certainitemsfromthatdiscussionareupdatedbelow,asnecessary,toassistintheunderstandingoftheseinterimfinancialstatements.

A.Revenue Recognition –Transportation and distribution revenue – This represents revenue related to natural gas transportation, distribution, and supply.TransportationrevenuesarerecognizedbyMoGasonfirmcontractedcapacityoverthecontractperiodregardlessofwhetherthecontractedcapacityisused.Forinterruptibleorvolumetricbasedtransportation,revenueisrecognizedwhenphysicaldeliveriesofnaturalgasaremadeatthedeliverypointagreeduponbybothparties.DistributionrevenueisrecognizedbyOmegabasedonagreeduponcontractualtermsovereachannualperiodduringthetermsofthecontract.BeginningFebruary1,2016,duetochangesthatcommencedunderanewcontractwiththeDepartmentofDefense("DOD"),gassalesandcostof(gas)salesarepresentedonanetbasisintheTransportationanddistributionrevenueline.Omegais alsopaidfees for theoperationandmaintenanceof its natural gasdistributionsystem, includinganynecessaryexpansionof thedistributionsystem.Omegaisresponsibleforthecoordination,supervision,andqualityoftheexpansionswhileactualconstructionisgenerallyperformedbythirdpartycontractors.Under the new DOD contract, the annual contracted amount for pipeline expansion is invoiced monthly by Omega on a straight-line basis. Revenues fromexpansion efforts are recognized using either a completed contract, percentage of completion, or cost-plus method based on the level and volumeof estimatesutilized,aswellasthecertaintyoruncertaintyofourabilitytocollectthoserevenues.AmountsinvoicedinexcessofearnedrevenueareclassifiedasunearnedrevenueandincludedasaliabilitywithintheConsolidatedBalanceSheets.

B.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(A)above.

C.Recent Accounting Pronouncements –InMay2014,theFinancialAccountingStandardsBoard("FASB")issuedASUNo.2014-09" RevenuefromContractswithCustomers" ,whichrequiresanentitytorecognizetheamountofrevenuetowhichitexpectstobeentitledforthetransferofpromisedgoodsorservicestocustomers.ThestandardwasoriginallyeffectiveforinterimandannualperiodsbeginningafterDecember15,2016andpermitstheuseofeithertheretrospectiveorcumulativeeffecttransitionmethod.Earlyadoptionisnotpermitted.OnJuly9,2015,theFASBapprovedaone-yeardeferraloftheeffectivedatemakingthestandard effective for interim and annual periods beginning after December 15, 2017. The FASBwill continue to permit entities to adopt the standard on theoriginaleffectivedateiftheychoose.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-ImputationofInterestSimplifyingthePresentationofDebtIssuanceCosts".Theamendmentsinthisupdaterequiredebtissuancecostsrelatedtoarecognizeddebtliabilitybepresentedinthebalancesheetasadirectdeductionfromthecarryingamountofthatdebtliability. InJune2015, theFASBissuedASUNo.2015-15"PresentationandSubsequent Measurement of Debt IssuanceCosts AssociatedwithLine-of-CreditArrangements" to clarify that ASU No. 2015-03 does not address the presentation or subsequent measurement of debt issuance costs related to line-of-creditarrangements. As a result, an entity may present debt issuance costs related to line-of-credit arrangements as an asset instead of a direct deduction from thecarrying amount of the debt. We adopted the accounting standards update as of January 1, 2016 with retrospective application to our December 31, 2015ConsolidatedBalanceSheets.Theeffectoftheadoptionwastoreclassify$510thousandofdebtissuancecostsatDecember31,2015fromdeferredcosts,netofaccumulatedamortization,tolong-termdebt.

InJanuary2016,theFASBissuedASU2016-01"FinancialInstruments—Overall:RecognitionandMeasurementofFinancialAssetsandFinancialLiabilities,"whichwillrequireentitiestomeasuretheirinvestmentsatfairvalueandrecognizeanychangesinfairvalueinnetincomeunlesstheinvestmentsqualifyforthenewpracticabilityexception.Thepracticabilityexceptionwillbeavailableforequityinvestmentsthatdonothavereadilydeterminablefairvalues.Theguidancewillbeeffectiveforusbeginning

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withthefirstquarterof2018.Wearecurrentlyevaluatingtheimpactthatadoptingthenewstandardwillhaveonourconsolidatedfinancialstatements.

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 interimperiods beginning after December 31, 2018, with early adoption permitted. At adoption, the standard will be applied using a modified retrospective approach.Managementisstillintheprocessofevaluatingtheimpactofthestandardonourconsolidatedfinancialstatementsandrelateddisclosures.

InJune2016,theFASBissuedASU2016-13"FinancialInstruments-CreditLosses"whichintroducesanapproachbasedonexpectedlossestoestimatecreditlossesoncertaintypesoffinancialinstruments.Thenewmodel,referredtoasthecurrentexpectedcreditlosses("CECLmodel"),willapplytofinancialassetssubject to credit losses and measured at amortized cost, and certain off-balance sheet credit exposures. This ASUis effective for fiscal years beginning afterDecember15,2019,includinginterimperiodswithinthatfiscalyear.EarlyapplicationoftheguidancewillbepermittedforallentitiesforfiscalyearsbeginningafterDecember15,2018,includinginterimperiodswithinthosefiscalyears.Wearecurrentlyevaluatingtheimpactthatadoptingthenewstandardwillhaveonourconsolidatedfinancialstatements.

InAugust2016,theFASBissuedASU2016-15,“StatementofCashFlows:ClassificationofCertainCashReceiptsandCashPayments”.Thisnewstandardwillmakeeighttargetedchangestohowcashreceiptsandcashpaymentsarepresentedandclassifiedinthestatementofcashflows.ThenewstandardiseffectiveforfiscalyearsbeginningafterDecember15,2017andwillrequireadoptiononaretrospectivebasisunlessitisimpracticabletoapply,inwhichcasewewouldberequiredtoapplytheamendmentsprospectivelyasoftheearliestdatepracticable.Wearecurrentlyevaluatingtheimpactthatadoptingthenewstandardwillhaveonourconsolidatedfinancialstatements.

3. LEASED PROPERTIES AND LEASES

AsofSeptember30,2016,wehadthreesignificant leasedproperties locatedinOregon,Wyoming, Louisiana, andtheGulfofMexico, whichareleasedonatriple-netbasistoourmajortenants,describedinthetablebelow.Thesemajortenantsareresponsibleforthepaymentofalltaxes,maintenance,repairs,insurance,andother operatingexpenses relatingto theleasedproperties. Ourlong-term, triple-net leases generally haveaninitial termof11to15yearswithoptionsforrenewals.Leaserevenuesarescheduledtoincreaseatvaryingintervalsduringtheinitialtermsofourleases.Thefollowingtablesummarizesoursignificantleasedproperties,majortenantsandleaseterms:

Summary of Leased Properties, Major Tenants and Lease TermsProperty GrandIsleGatheringSystem PinedaleLGS(1) PortlandTerminalFacilityLocation GulfofMexico/Louisiana Pinedale,WY Portland,OR

Tenant EnergyXXIGIGSServices,LLC UltraWyomingLGS,LLC ArcTerminalsHoldingsLLC

AssetDescription

Approximately153milesofoffshorepipelinewithtotalcapacityof120thousandBbls/d,includinga16-acreonshoreterminalandsaltwaterdisposal

system

Approximately150milesofpipelinesandfourcentralstorage

facilities

A42-acrerailandmarinefacilitypropertyadjacenttotheWillametteRiverwith84tanksandtotalstoragecapacityofapproximately1.5

millionbarrelsDateAcquired June2015 December2012 January2014

InitialLeaseTerm

11years 15years 15years

RenewalOption

equaltothelesserof9-yearsor75percentoftheremainingusefullife 5-yearterms 5-yearterms

CurrentMonthlyRentPayments

7/1/15-6/30/16:$2,625,4177/1/16-6/30/17:$2,826,250 $1,723,833 $513,355

InitialEstimatedUseful 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 theeconomic interest in Pinedale LP. The general partner, Pinedale GP, a wholly-owned subsidiary of the Company, holds the remaining 81.05 percent ofthe economic interest.

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ThefuturecontractedminimumrentalreceiptsforallleasesasofSeptember30,2016,areasfollows:

Future Minimum Lease Receipts

Years Ending December 31, Amount

2016 $ 15,219,940

2017 60,984,095

2018 61,139,762

2019 63,468,195

2020 70,629,654

Thereafter 451,794,133

Total $ 723,235,779

ThetablebelowdisplaystheCompany'sindividuallysignificantleasesasapercentageoftotalleasedpropertiesandtotalleaserevenuesfortheperiodspresented:

As a Percentage of (1)

Leased Properties Lease Revenues


September 30, 2016 December 31, 2015 September 30,2016 September 30,

2015 September 30,2016 September 30,

2015

PinedaleLGS 39.8% 40.0% 30.4% 30.4% 30.4% 49.8%

GrandIsleGatheringSystem 50.2% 50.1% 59.8% 59.9% 59.8% 32.7%

PortlandTerminalFacility 9.8% 9.6% 9.7% 9.6% 9.7% 15.3%

PublicServiceofNewMexico(2) — — — — — 2.1%(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.

ThefollowingtablereflectsthedepreciationandamortizationincludedintheaccompanyingConsolidatedStatementsofIncomeassociatedwithourleasesandleasedproperties:


September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

Depreciation Expense

GIGS $ 2,153,928 $ 2,158,338 $ 6,451,578 $ 2,158,338

Pinedale 2,217,360 2,217,360 6,652,080 6,652,080

PortlandTerminalFacility 318,914 429,717 524,170 1,258,953

EasternInterconnectProject — — — 569,670

UnitedPropertySystems 8,515 7,425 23,365 22,275

TotalDepreciationExpense $ 4,698,717 $ 4,812,840 $ 13,651,193 $ 10,661,316

Amortization Expense - Deferred Lease Costs

GIGS $ 7,641 $ 7,482 $ 22,923 $ 7,482

Pinedale 15,342 15,342 46,026 46,026TotalAmortizationExpense-DeferredLeaseCosts $ 22,983 $ 22,824 $ 68,949 $ 53,508

ThefollowingtablereflectsthedeferredcoststhatareincludedintheaccompanyingConsolidatedBalanceSheetsassociatedwithourleasedproperties:

September 30, 2016 December 31, 2015

Net Deferred Lease Costs

GIGS $ 298,088 $ 321,011

Pinedale 688,427 734,454

TotalDeferredLeaseCosts,net $ 986,515 $ 1,055,465

Substantiallyallofourtenants'financialresultsaredrivenbyexploitingnaturallyoccurringoilandnaturalgashydrocarbondepositsbeneaththeEarth'ssurface.Asaresult,ourtenants'financialresultsarehighlydependentontheperformanceoftheoilandnaturalgasindustry,whichishighlycompetitiveandsubjecttovolatility. During the terms of our leases, we monitor credit quality of our tenants by reviewing their published credit ratings, if available, reviewing publiclyavailablefinancialstatements,

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orreviewingfinancialorotheroperatingstatements,monitoringnewsreportsregardingourtenantsandtheirrespectivebusinesses,andmonitoringthetimelinessofleasepaymentsandtheperformanceofotherfinancialcovenantsundertheirleases.

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.UltraWyominghasnotfiledamotiontorejectthePinedaleLeaseandallscheduledleasepaymentsarecurrent.

On August 30, the Company filed proofs of claim with the bankruptcy court handling the Ultra Petroleum bankruptcies with respect to rights granted underguaranteeandindemnificationprovisionsinthePinedaleLease.OnSeptember20,2016,theCompanyfiledamotiontodismissthetenant,UltraWyomingLCSLLCfromtheUltraPetroleumbankruptcyprocessbasedontheCompany’sbeliefinthetenant’ssolvency,towhichUltraPetroleumsubsequentlyfiledaresponse.Thepartiesagreedtonon-bindingmediationandagreedtoextendthedeadlineforUltraWyomingtoacceptorrejectthePinedaleLeaseuntilDecember15,2016.

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.NoneoftheinformationinthepublicreportsofUltraPetroleumthatarefiledwiththeSECisincorporatedbyreferenceinto,orinanywayform,apartofthisfiling.

EXXI

OnApril14,2016,EnergyXXIandsubstantiallyallofitsdirectlyandindirectlyownedsubsidiariesfiledavoluntarypetitiontoreorganizeunderChapter11,afterreachinganagreementwithcertaincreditorstoprovidesupportforarestructuringofitsdebt.ThebankruptcyfilingofEnergyXXI,theguarantoroftheGrandIsleLeaseAgreement,anditsfailuretomakeinterestpaymentstoitscreditorswithintheapplicablecureperiod,wouldhaveconstituteddefaultsunderthetermsoftheGrandIsleLeaseAgreement.However,tofacilitatepost-filingfinancingarrangementsbetweentheEXXIDebtorGroupanditslenders,theCompanyprovidedaconditional waiver to certain remedies available to it as a result of these non-monetary defaults. EXXI Tenant has not filed for bankruptcy. Therefore, itsobligations under the Grand Isle Lease Agreement are currently not subject to the proceedings affecting the EXXI Debtor Group. The Company has notcompromisedanyremediesavailabletoitforanydefaultbyEXXITenantundertheGrandIsleLeaseAgreement.Allscheduledleasepaymentsarecurrent.

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.NoneoftheinformationinthepublicreportsofEXXIthatarefiledwiththeSECisincorporatedbyreferenceinto,orinanywayform,apartofthisfiling.

Arc Logistics

ArcLogisticsiscurrentlysubjecttothereportingrequirementsoftheExchangeActandisrequiredtofilewiththeSECannualreportscontainingauditedfinancialstatementsandquarterlyreportscontainingunauditedfinancialstatements.Theaudited

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financial statements and unaudited financial statements of Arc Logistics can be found on the SEC's web site at www.sec.gov (NYSE: ARCX). The Companymakes no representation as to the accuracy or completeness of the audited and unaudited financial statements of Arc Logistics but has no reason to doubt theaccuracyorcompletenessofsuchinformation.Inaddition,ArcLogisticshasnoduty,contractualorotherwise,toadvisetheCompanyofanyeventsthatmighthaveoccurredsubsequenttothedateofsuchfinancialstatementswhichcouldaffectthesignificanceoraccuracyofsuchinformation.NoneoftheinformationinthepublicreportsofArcLogisticsthatarefiledwiththeSECisincorporatedbyreferenceinto,orinanywayform,apartofthisfiling.

4. FINANCING NOTES RECEIVABLE

Financingnotesreceivablearepresentedatfacevalueplusaccruedinterestreceivable, deferredloanoriginationcosts,andnetofrelateddirectloanoriginationincome.EachquartertheCompanyreviewsitsfinancingnotesreceivabletodetermineifthebalancesarerealizablebasedonfactorsaffectingthecollectabilityofthose balances. Factors may include credit quality, timeliness of required periodic payments, past due status, and management discussions with obligors. TheCompanyevaluatesthecollectabilityofbothinterestandprincipalofeachofitsloanstodetermineifanallowanceisneeded.Anallowancewillberecordedwhenbased on current information and events, the Company determines it is probable that it will be unable to collect all amounts due according to the existingcontractual terms. If the Companydoes determine anallowance is necessary, the amount deemeduncollectable is expensedin the periodof determination. Aninsignificantdelayorshortfallintheamountofpaymentsdoesnotnecessarilyresultintherecordingofanallowance.Generally,wheninterestand/orprincipalpaymentsonaloanbecomepastdue,orifweotherwisedonotexpecttheborrowertobeabletoserviceitsdebtandotherobligations,wewillplacetheloanonnon-accrualstatusandwillgenerallyceaserecognizingfinancingrevenueonthatloanuntilallprincipalandinteresthavebeenbroughtcurrent.Interestincomerecognitionisresumedifandwhenthepreviouslyreserved-forfinancingnotesbecomecontractuallycurrentandperformancehasbeendemonstrated.Paymentsreceivedsubsequenttotherecordingofanallowancewillberecordedasareductiontoprincipal.

Black Bison Financing Notes

TheCompanydidnotrecordanyfinancingrevenuerelatedtotheBlackBisonLoansforthethree-ornine-monthperiodsendedSeptember30,2016.ThesenoteswereconsideredbytheCompanytobeonnon-accrual statusandhavebeenreflectedassuchinthefinancial statements.ForthethreeandninemonthsendedSeptember30,2016,theCompanyrecorded$0and$832thousand,respectively,inprovisionforloanlossescomparedto$8.0millionforboththethreeandninemonthsendedSeptember30,2015.OnFebruary29,2016,theCompanyforeclosedon100percentoftheequityofBBIntermediate,theborroweroftheBlackBisonfinancingnotes,aswellasalloftheothercollateralsecuringtheBlackBisonLoans.Theforeclosurewasacceptedinsatisfactionof$2.0millionofthetotaloutstandingloanbalance.Therealpropertyassetsweresoldordisposedof,asfurtherdescribedinNote7,PropertyAndEquipment.

Four Wood Financing Note Receivable

Asaresult of thedecreasedeconomicactivity bySWD,theCompanyrecordedaprovisionfor loanlosswithrespect totheSWDLoans. FortheninemonthsendedSeptember30,2016,theincomestatementreflectsaProvisionforLoanLossof$3.5million,whichincludes$71thousandofdeferredoriginationincomeand$98thousandofinterestaccruedundertheoriginalloanagreements.Thebalanceofthenote,netofthereserveforloanloss,representstheamountexpectedtoberealizedasofSeptember30,2016.OurnotewithSWDissecuredbyphysicalassetsownedbySWD.WehaveassessedtheenterprisevalueofSWD,andthusthevalueofthecollateral supportingtheFourWoodNotes, at$1.5millionasofSeptember30,2016.SeeNote14,SubsequentEvents ,fordiscussionoftherestructuringoftheSWDLoansonOctober1,2016.

5. VARIABLE INTEREST ENTITIES

The FASB issued ASU 2015-02, "Consolidations (Topic 810) - Amendments to the Consolidation Analysis" (“ASU 2015-02”), which amended previousconsolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. Under this analysis,limited partnerships and other similar entities are considered a variable interest entity (“VIE”) unless the limited partners hold substantive kick-out rights orparticipatingrights.ManagementdeterminedthatPinedaleLPandGrandIsleCorridorLPareVIEsundertheamendedguidancebecausethelimitedpartnersofbothpartnershipslackbothsubstantivekick-outrightsandparticipatingrights.Assuch,managementevaluatedthequalitativecriteriaunderFASBASCTopic810- Consolidation in conjunction with ASU 2015-02 to make a determination whether these partnerships should be consolidated on the Company's financialstatements.ASCTopic810-10requirestheprimarybeneficiaryofavariableinterestentity'sactivitiestoconsolidatetheVIE.Theprimarybeneficiaryisidentifiedastheenterprisethathasa)thepowertodirecttheactivitiesoftheVIEthatmostsignificantlyimpacttheentity'seconomicperformanceandb)theobligationtoabsorblossesoftheentitythatcouldpotentiallybesignificanttotheVIEortherighttoreceivebenefitsfromtheentitythatcouldpotentiallybe

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significanttotheVIE.ThestandardrequiresanongoinganalysistodeterminewhetherthevariableinterestgivesrisetoacontrollingfinancialinterestintheVIE.Baseduponthe general partners’ roles andrights as affordedbythe partnership agreements andits exposure to losses andbenefits of eachof the partnershipsthroughitssignificantlimitedpartnerinterests,managementdeterminedthatCorEnergyistheprimarybeneficiaryofbothPinedaleLPandGrandIsleCorridorLP.Baseduponthatevaluation,theconsolidatedfinancialstatementspresentedcontinuetoconsolidatebothofthepartnerships.

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’sdeferredtaxassetsandliabilitiesasofSeptember30,2016,andDecember31,2015,areasfollows:

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

Netoperatinglosscarryforwards $ 1,123,214 $ 543,116Netunrealizedlossoninvestmentsecurities — 251,539LoanLossProvision 605,107 1,257,436Otherlosscarryforwards 2,930,342 1,833,240Sub-total $ 4,658,663 $ 3,885,331

Deferred Tax Liabilities: Basisreductionofinvestmentinpartnerships $ (2,103,511) $ (2,159,058)Netunrealizedgainoninvestmentsecurities (7,142) —Costrecoveryofleasedandfixedassets (958,452) (119,297)Sub-total $ (3,069,105) $ (2,278,355)

Total net deferred tax asset $ 1,589,558 $ 1,606,976

AsofSeptember30,2016,thetotaldeferredtaxassetsandliabilitiespresentedaboverelatestotheCompany'sTRSs.TheCompanyrecognizesthetaxbenefitsofuncertaintaxpositionsonlywhenthepositionis“morelikelythannot”tobesustaineduponexaminationbythetaxauthoritiesbasedonthetechnicalmeritsofthetaxposition.TheCompany’spolicyistorecordinterestandpenaltiesonuncertaintaxpositionsaspartoftaxexpense.TaxyearssubsequenttotheyearendedDecember31,2012,remainopentoexaminationbyfederalandstatetaxauthorities.

Totalincometaxexpense/(benefit)differsfromtheamountcomputedbyapplyingthefederalstatutoryincometaxrateof35percentforthethreeandninemonthsendedSeptember30,2016and2015,toincomeorlossfromoperationsandotherincomeandexpensefortheyearspresented,asfollows:

Income Tax Expense (Benefit) For the Three Months Ended For the Nine Months Ended

September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

Applicationofstatutoryincometaxrate $ 3,400,018 $ (497,607) $ 7,425,355 $ 2,492,537

Stateincometaxes,netoffederaltax(benefit) 28,642 (141,807) (29,384) (113,744)FederalTaxAttributabletoIncomeofRealEstateInvestmentTrust (2,945,508) (1,209,539) (7,757,507) (3,956,244)

Total income tax expense (benefit) $ 483,152 $ (1,848,953) $ (361,536) $ (1,577,451)

Total incometaxes are computed by applying the federal statutory rate of35percentplus a blended state income tax rate. Corridor Public Holdings, Inc. andCorridorPrivateHoldings,Inc.hadablendedstaterateofapproximately2.82percentforthethreeandninemonthsendedSeptember30,2016,and3.92percentforthethreeandninemonthsendedSeptember30,2015.CorEnergyBBWS,Inc.doesnotrecordaprovisionforstateincometaxesbecauseitoperatesonlyinWyoming, whichdoes not havestate incometax. Because MowoodCorridor, Inc. andCorridor MoGas, Inc. primarily only operate in the state of Missouri, ablendedstateincometaxrateof5percentwasusedfortheoperationsofbothTRSsforthethreeandninemonthsendedSeptember30,2016and2015.AlloftheincometaxbenefitpresentedaboverelatestotheassetsandactivitiesheldintheCompany'sTRSsforthethreeandninemonthsendedSeptember30,2016and2015.Thecomponentsofincometaxexpense/(benefit)includethefollowingfortheperiodspresented:

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Components of Income Tax Expense (Benefit) For the Three Months Ended For the Nine Months Ended

September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015Current tax expense (benefit)

Federal $ 88,032 $ 94,277 $ (350,698) $ 580,535State(netoffederaltaxbenefit) 7,093 10,743 (28,256) 64,720

Totalcurrenttaxexpense(benefit) $ 95,125 $ 105,020 $ (378,954) $ 645,255

Deferred tax expense (benefit) Federal $ 366,478 $ (1,801,423) $ 18,546 $ (2,044,242)State(netoffederaltaxbenefit) 21,549 (152,550) (1,128) (178,464)

Totaldeferredtaxexpense(benefit) $ 388,027 $ (1,953,973) $ 17,418 $ (2,222,706)Total income tax expense (benefit), net $ 483,152 $ (1,848,953) $ (361,536) $ (1,577,451)

AsofDecember 31, 2015 , the TRSshad an aggregate net operating loss of$1.4million. The net operating loss maybe carried forward for 20years. If notutilized,thisnetoperatinglosswillexpireasfollows:$90thousand,$804thousandand$478thousandintheyearsendingDecember31,2033,2034,and2035respectively.TheamountofdeferredtaxassetfornetoperatinglossesasofSeptember30,2016,includesamountsfortheninemonthsendedSeptember30,2016.Theaggregatecostofsecuritiesforfederalincometaxpurposesandsecuritieswithunrealizedappreciationanddepreciation,wereasfollows:

Aggregate Cost of Securities for Income Tax Purposes (Unaudited) September 30, 2016 December 31, 2015Aggregate cost for federal income tax purposes $ 4,334,950 $ 4,750,252

Grossunrealizedappreciation 5,580,785 5,133,908Grossunrealizeddepreciation — (97,500)Net unrealized appreciation $ 5,580,785 $ 5,036,408

7. PROPERTY AND EQUIPMENTPropertyandequipmentconsistsofthefollowing:

Property and Equipment September 30, 2016 December 31, 2015Land $ 580,000 $ 580,000Naturalgaspipeline 124,574,243 124,386,349Vehiclesandtrailers 570,267 524,921Officeequipmentandcomputers 264,662 87,696Gross property and equipment $ 125,989,172 $ 125,578,966Less:accumulateddepreciation (8,454,299) (5,948,988)

Net property and equipment $ 117,534,873 $ 119,629,978

Depreciationofpropertyandequipmentisasfollows:

For the Three Months Ended For the Nine Months Ended September 30, 2016 September 30, 2015 September 30, 2016 September 30, 2015

Depreciation Expense $ 838,462 $ 831,480 $ 2,515,408 $ 2,497,138

Assets and Liabilities Held for Sale

EffectiveFebruary29,2016,theCompanyforeclosedon100percentoftheequityofBBIntermediate,theholdingcompanyofBBWS,theborroweroftheBlackBisonfinancingnotes. OnJune16, 2016, theCompanyenteredintoanasset saleagreement withExpeditionWater Solutionsforthesaleofspecifieddisposalwellsandrelatedequipmentasoutlinedinthesaleagreement. Considerationreceivedbythecompanyincluded$748thousandcash,netoffees,andthefuturerighttocashpaymentstotaling$6.5million,whichwasfairvaluedat$450thousandandisincludedinAccountsandotherreceivableswithintheConsolidatedBalanceSheetatSeptember30,2016.Therightstofuturecashpaymentsaretiedtothefuturevolumesofwaterdisposedineachofthewellssold.Alsoasaresultof the sale, the Companyrecognized a loss of approximately$369thousandwhich has been included in the Provision for loan losses within the ConsolidatedStatementofIncome.

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

TherewerenoassetsorliabilitiesheldforsaleatSeptember30,2016,orDecember31,2015.

8. MANAGEMENT AGREEMENT

TheCompanypaysCorridorastheCompany'sManagerpursuanttoaManagementAgreementasdescribedinthe2015CorEnergy10-K.InlightoftheprovisionsforloanlossesrecognizedbytheCompanyoncertainofitsenergyinfrastructurefinancinginvestments(collectively,the"UnderperformingLoans")during2015andthefirstquarterof2016,theManagervoluntarilyrecommended,andtheCompanyagreed,thateffectiveonandaftertheCompany'sMarch31,2016balancesheetdate,solelyforthepurposeofcomputingthevalueoftheCompany’sManagedAssetsincalculatingthequarterlymanagementfeeunderthetermsoftheManagement Agreement, that portion of the Management Fee attributable to the Company’s investment in the Underperforming Loans shall be based on theestimatednetrealizablevalueofsuchloans,whichshallnotexceedtheamountinvestedintheUnderperformingLoansasoftheendofthequarterforwhichtheManagementFeeistobecalculated.ThisagreementsupersededaprioragreementbetweentheCompanyandtheManager,whichwaseffectiveasofSeptember30,2015,concerningvaluationoftheBlackBisonLoansforpurposesofcalculatingtheManagementFee.

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

Fees incurred under the Management Agreement for the three and nine months ended September 30, 2016,were$1.9 million and$5.4 million ,respectively,compared to $1.7 million and $4.1 million , respectively, for the three and nine months ended September 30, 2015. Fees incurred under the ManagementAgreementarereportedintheGeneralandAdministrativelineitemontheincomestatement.

TheCompanypaysCorridor,astheCompany'sAdministratorpursuanttoanAdministrativeAgreement.FeesincurredundertheAdministrativeAgreementforthethree and nine months ended September 30, 2016, were $67 thousand and $199 thousand , respectively, compared to $66 thousand and $157 thousand ,respectively, for the three and nine months ended September 30, 2015. Fees incurred under the Administrative Agreement are reported in the General andAdministrativelineitemontheincomestatement.

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 followingtablesprovidethefair valuemeasurementsofapplicableCompanyassetsandliabilitiesbylevelwithinthefair valuehierarchyasofSeptember30,2016,andDecember31,2015.Theseassetsandliabilitiesaremeasuredonarecurringbasis.

September 30, 2016

September 30, 2016

Fair Value Level 1 Level 2 Level 3Assets: Otherequitysecurities $ 9,465,736 $ — $ — $ 9,465,736Total Assets $ 9,465,736 $ — $ — $ 9,465,736

Liabilities: InterestRateSwapDerivative $ 49,143 $ — $ 49,143 $ —Total Liabilities $ 49,143 $ — $ 49,143 $ —

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

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OnMarch30, 2016, theCompanyterminatedoneof the cash flowhedges with a notional amount of$26.3millionconcurrent withtheassignmentofthe$70millionPinedaleCreditFacility.Theremainingcashflowhedgewasde-designatedfromhedgeaccountingasofMarch30,2016,andcontinuestobevaluedusingaconsistentmethodologyandthereforeisclassifiedasaLevel2investment.Subsequenttode-designation,changesinthefairvaluearerecognizedinearningsintheperiodinwhichthechangesoccur.

ThechangesforallLevel3securitiesmeasuredatfairvalueonarecurringbasisusingsignificantunobservableinputsfortheninemonthsendedSeptember30,2016and2015,areasfollows:

Level 3 Rollforward

For the NineMonths EndedSeptember 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 $ — $ — $ 958,443 $ 113,610 $ 9,465,736 $ 958,443

Total $ 8,393,683 $ — $ — $ 958,443 $ 113,610 $ 9,465,736 $ 958,443

For the Nine

Months EndedSeptember 30,

2015 Otherequitysecurities $ 9,217,181 $ — $ — $ (842,438) $ 283,325 $ 8,658,068 $ (842,438)WarrantInvestment 355,000 — — (355,000) — — (355,000)

Total $ 9,572,181 $ — $ — $ (1,197,438) $ 283,325 $ 8,658,068 $ (1,197,438)

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

TheCompanyutilizesthebeginningofreportingperiodmethodfordeterminingtransfersbetweenlevels.Therewerenotransfersbetweenlevels1,2or3fortheninemonthsendedSeptember30,2016and2015,respectively.

InconnectionwiththeOctober2014saleoftheCompany'ssharesinVantaCore,aportionoftheproceedswereplacedinescrowandareceivablewasrecorded.Changes in the fair value of the escrow receivable were recorded as a net realized or unrealized gain or loss on other equity securities included within theConsolidatedStatementsofIncomeandComprehensiveIncome.ForthethreeandninemonthsendedSeptember30,2016,approximately$0and$43thousand,wasincludedasagain,respectively,comparedto$0and$282thousandforthethreeandninemonthsendedSeptember30,2015,respectively.

Valuation Techniques and Unobservable Inputs

TheCompany’sotherequitysecurities,whichrepresentsecuritiesissuedbyprivatecompanies,areclassifiedasLevel3assets.Significantjudgmentisrequiredinselectingtheassumptionsusedtodeterminethefairvaluesoftheseinvestments.

As of September 30, 2016 andDecember 31, 2015 , the Company’s investment in Lightfoot Capital Partners, LP and Lightfoot Capital Partners GP LLC,collectively,("Lightfoot")isitsonlyremainingsignificantprivatecompanyinvestment.Lightfootinturnownsacombinationofpublicandprivateinvestments.Therefore,Lightfootwasvaluedusingacombinationofthefollowingvaluationtechniques:(i)publicsharepriceofprivatecompanies'investmentsdiscountedforalackofmarketability,withthediscountestimatedat2.8percentto3.5percentand11.8percentto15.2percentasofSeptember30,2016andDecember31,2015,and(ii)discountedcashflowanalysisusinganestimateddiscountrateof14.5percentto16.5percentand14.0percentto16.0percentasofSeptember30,2016andDecember31,2015, respectively. Duetotheinherent uncertaintyof determiningthefair valueof investments that donot haveareadilyavailable marketvalue,thefairvalueoftheCompany’sinvestmentmayfluctuatefromperiodtoperiod.Additionally,thefairvalueoftheCompany’sinvestmentmaydifferfromthevaluesthatwouldhavebeenusedhadareadymarketexistedforsuchinvestmentandmaydiffermateriallyfromthevaluesthattheCompanymayultimatelyrealize.

As of bothSeptember 30, 2016 andDecember 31, 2015 , the Company held a 6.6 percent and1.5 percent equity interest in Lightfoot LP and Lightfoot GP,respectively.Lightfoot’sassetsincludeanownershipinterestinGulfLNG,a1.5billioncubicfeetperday(“bcf/d”)receiving,storage,andregasificationterminalin Pascagoula, Mississippi, and common units and subordinated units representing an approximately 40 percent aggregate limited partner interest, and anoneconomicgeneralpartnerinterest,inArcLogisticsPartnersLP(NYSE:ARCX).TheCompanyholdsobservationrightsonLightfoot'sBoardofDirectors.

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For the three and nine months ended September 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.

Certaincondensedcombinedunauditedfinancialinformationoftheunconsolidatedaffiliate,Lightfoot,ispresentedinthefollowingtables(inthousands):

September 30, 2016 December 31, 2015 (Unaudited) (Unaudited)

Assets

Currentassets $ 20,504 $ 24,276

Noncurrentassets 700,502 696,461

TotalAssets $ 721,006 $ 720,737

Liabilities

Currentliabilities $ 14,048 $ 19,993

Noncurrentliabilities 266,609 246,808

TotalLiabilities $ 280,657 $ 266,801

Partner's equity 440,349 453,936

Totalliabilitiesandpartner'sequity $ 721,006 $ 720,737

For the Three Months Ended For the Nine Months Ended (Unaudited) (Unaudited)

September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

Revenues $ 26,673 $ 24,084 $ 78,983 $ 56,751

Operatingexpenses 21,287 21,526 64,171 54,194

Income(Loss)fromOperations $ 5,386 $ 2,558 $ 14,812 $ 2,557

Otherincome 2,207 2,683 6,950 9,837

NetIncome $ 7,593 $ 5,241 $ 21,762 $ 12,394

Less:NetIncomeattributabletonon-controllinginterests (7,551) (5,206) (21,630) (12,269)

NetIncomeattributabletoPartner'sCapital $ 42 $ 35 $ 132 $ 125

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.Estimatesofrealizablevaluearedeterminedbasedonunobservableinputs,includingestimatesoffuturecashflowgenerationandvalueofcollateralunderlyingthenotes.

Derivative Asset/Liability —TheCompanyusesinterest rateswapstomanageinterest raterisk.Thefair valueoftheseinstrumentsisdeterminedusingwidelyacceptedvaluationtechniquesincludingdiscountedcashflowanalysisontheexpectedcashflowsoftherespectivederivative.

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

Line of Credit —Thecarryingvalueofthelineofcreditapproximatesthefairvalueduetoitsshort-termnature.

Carrying and Fair Value Amounts Level

within fairvalue

hierarchy


CarryingAmount Fair Value

CarryingAmount Fair Value

Financial Assets:

Cashandcashequivalents Level1 $ 10,107,754 $ 10,107,754 $ 14,618,740 $ 14,618,740

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

Financingnotesreceivable(Note4) Level3 $ 1,500,000 $ 1,500,000 $ 7,675,626 $ 7,675,626

Derivativeasset Level2 $ — $ — $ 98,259 $ 98,259

Financial Liabilities: SecuredCreditFacilities(1) Level2 $ 91,698,387 $ 91,698,387 $ 105,440,842 $ 105,440,842

Unsecuredconvertibleseniornotes Level2 $ 111,048,098 $ 112,860,000 $ 111,423,910 $ 87,622,591

Derivativeliability Level2 $ 49,143 $ 49,143 $ — $ —

(1) Includes current maturities

10. CREDIT FACILITIES

ThefollowingisasummaryofourseniornotespayableandotherdebtasofSeptember30,2016,andDecember31,2015:

TotalCommitmentorOriginalPrincipal

QuarterlyPrincipalPayments


MaturityDate

AmountOutstanding

InterestRate

AmountOutstanding

InterestRate

7%UnsecuredConvertibleSeniorNotes $ 115,000,000 $ — 6/15/2020 $ 114,000,000 7.00% $ 115,000,000 7.00%RegionsSecuredCreditFacilities:

RegionsRevolver $ 105,000,000 $ — 12/15/2019 44,000,000 3.80% — 3.07%

RegionsTermLoan $ 45,000,000 $ 1,615,000 12/15/2019 38,355,000 3.78% 43,200,000 3.07%

MoGasRevolver $ 3,000,000 $ — 12/15/2019 — 3.78% — 3.07%

OmegaLineofCredit $ 1,500,000 $ — 7/31/2017 — 4.53% — 4.43%PinedaleSecuredCreditFacility:

$70MTermLoan $ 70,000,000 $ — 3/30/2016 — — 62,532,000 4.67%$58.5MTermLoan–relatedparty(1) $ 11,085,750 $ 167,139 3/30/2021 9,574,465 8.00% — —

Total Debt $ 205,929,465 $ 220,732,000

Less:

Unamortizeddeferredfinancingcosts(2) $ 412,086 $ 510,401

Unamortizeddiscounton7%ConvertibleSeniorNotes 2,770,894 3,356,847

Long-term debt, net of deferred financing costs $ 202,746,485 $ 216,864,752

Debt due within one year $ 7,128,556 $ 66,132,000 (1) $47,414,250 of the $58.5 million term loan is payable to CorEnergy under the same terms, and eliminates in consolidation.(2) A portion of the unamortized deferred financing costs, related to our revolving credit facilities, are included in Deferred Costs in theAssets section of the Consolidated Balance Sheets. See the next table for deferred financing costs included in the Asset section of theConsolidated Balance Sheets.

Deferred Financing Costs, net (1)


RegionsCreditFacilities $ 2,422,105 $ 2,975,476

PinedaleCreditFacility — 156,330

Total Deferred Debt Costs, net $ 2,422,105 $ 3,131,806(1) This is the portion of deferred financing costs which relate to a revolving credit facility and are notpresented as a reduction to Long-term debt but rather as Deferred Costs in the Asset section of theConsolidated Balance Sheets.

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Deferred Financing Cost Amortization Expense (1)(2)


September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

RegionsCreditFacilities $ 272,074 $ 368,486 $ 806,452 $ 723,694

PinedaleCreditFacility — 129,216 156,330 387,648

Total Deferred Debt Cost Amortization $ 272,074 $ 497,702 $ 962,782 $ 1,111,342(1) Amortization of deferred debt issuance costs is included in interest expense in the Consolidated Statements of Income.(2) For the amount of deferred debt costs amortization relating to the Convertible Notes included in the Consolidated Statements ofIncome, see the Convertible Debt footnote.

TheremainingcontractualprincipalpaymentsasofSeptember30,2016,underourRegionsandPinedalecreditfacilitiesareasfollows:

Total Remaining Contractual Payments

Year RegionsRevolver

Regions TermLoan

Pinedale CreditFacility Total

2016 $ — $ 1,615,000 $ 167,139 $ 1,782,139

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 — — 6,733,102 6,733,102

Total $ 44,000,000 $ 38,355,000 $ 9,574,465 $ 91,929,465

Regions Credit Facilities

OnMarch30,2016,theCompanydrew$44.0millionontheRegionsRevolverinconjunctionwiththerefinancingofthePinedaleCreditFacility.Seebelowforfurtherdetails.AsofSeptember30,2016,theCompanyhasapproximately$53.3millionofavailableborrowingbasecapacityontheRegionsRevolver.

Pinedale Credit Facility

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

ThecreditfacilityremainedineffectuntilDecember31,2015,withanoptiontoextendthroughDecember31,2016.AlthoughtheCompanyelectednottoextendthefacilityforanadditionalone-yearperioditdidamendthefacilitytoextendthematuritydatetoMarch30,2016.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.TheCompanyalsoterminatedoneoftworelatedinterestrateswapswithanotionalamountof$26.3million.

TheCompanyhasprovidedtoPrudentialaguaranteeagainstcertaininappropriateconductbyoronbehalfofPinedaleLPorus.Thecreditagreementcontains,amongotherrestrictions,specificfinancialcovenantsincludingthemaintenanceofcertainfinancial

25


coverageratiosandaminimumnetworthrequirement.PinedaleLPwasincompliancewithallcovenantsunderthePinedaleCreditFacilityasofSeptember30,2016.

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 theRefinancingLendersupontheApril29,2016,bankruptcyfilingbyUltraWyominganditsparentguarantor,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,untilsuchtimeastheCashControlPeriodhasterminatedortheUltraLeasehasbeenaffirmedbyUltraWyominginalawfulbankruptcyproceeding.ForthethreeandninemonthsendedSeptember30,2016,pursuanttotheseadditionalcashsweepprovisions,anadditional$3.1millionand$6.2million,respectively,wasdistributed(prorata,basedonownershippercentages)totheRefinancingLenders as a reduction to the outstanding principal. The credit facility also requires that Pinedale LPmaintain minimumnet worth levels and certain leverageratios,whichalongwithotherprovisionsofthecreditfacilitylimitcashdividendsandloanstotheCompany.AtSeptember30,2016,thenetassetsofPinedaleLPwere$142.6millionandPinedaleLPwasincompliancewithallofthefinancialcovenantsofthesecuredtermcreditfacility.

11. CONVERTIBLE DEBT

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

The following is a summary of the impact of Convertible Notes on interest expense for the three and nine months ended September 30, 2016 and 2015,respectively:

Convertible Note Interest Expense For the Three Months Ended For the Nine Months Ended

September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

7%ConvertibleNotes $ 2,017,167 $ 2,012,500 $ 6,013,195 $ 2,057,222

DiscountAmortization 185,391 192,418 559,353 192,418

DeferredDebtIssuanceAmortization 11,539 9,266 36,497 9,266

Total $ 2,214,097 $ 2,214,184 $ 6,609,045 $ 2,258,906

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,theeffectiveinterestrateontheConvertibleNotesisapproximately7.8percentand7.7percentforthethreeandninemonthsendedSeptember30,2016,respectively,comparedto7.7percentand7.8percentforthethreeandninemonthsendedSeptember30,2015,respectively.

12. STOCKHOLDER'S EQUITY

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

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“CORRPrA."TheaggregateparvalueofthepreferredsharesatSeptember30,2016,is$23.SeeNote14,SubsequentEvents,forfurtherinformationregardingthedeclarationofadividendonthe7.375%SeriesACumulativeRedeemablePreferredStock.

COMMON STOCK

AsofSeptember30,2016,theCompanyhad11,876,389ofcommonsharesissuedandoutstanding.EffectiveDecember1,2015,theCompanycompletedaone-for-fivereversecommonstocksplit.Asaresult,everyfiveissuedandoutstandingsharesofcommonstockoftheCompanyconvertedintooneshareofcommonstock.Theparvalueofeachshareofcommonstockandthenumberofauthorizedsharesremainedunchanged.OnDecember31,2015,theCompany'sboardofdirector'sauthorizedasharerepurchaseprogramfortheCompanytobuyupto$10.0millionofitscommonstock.AsofSeptember30,2016theCompanyhadrepurchased90,613shares for approximately $2.0 million in cash. The Company may repurchase shares from time to time through open market transactions,including through block purchases, in privately negotiated transactions, or otherwise. The timing, manner, price, and amount of any repurchases are to bedeterminedbyseniormanagement,dependingonmarketpricesandotherconditions.TheCompanyisnotobligatedtorepurchaseanysharesofstockundertheprogramandmayterminatetheprogramatanytimebeforetheexpirationdateofDecember31,2016.SeeNote14,SubsequentEvents,forfurtherinformationregardingthedeclarationofadividendonthecommonstock.

SHELF REGISTRATION

OnFebruary18,2016,theCompanyhadanewshelfregistrationstatementdeclaredeffectivebytheSEC,pursuanttowhichwemaypubliclyofferadditionaldebtorequitysecuritieswithanaggregateofferingpriceofupto$600million.

AsofSeptember30,2016,theCompanyissued24,754sharesofcommonstockundertheCompany'sdividendreinvestmentplanpursuanttotheFebruary18,2016shelf,reducingavailabilitybyapproximately$494thousandtoapproximately$599.5million.

13. EARNINGS PER SHARE

Basicearningspersharedataiscomputedbasedontheweightedaveragenumberofsharesofcommonstockoutstandingduringtheperiods.DilutedEPSdataiscomputedbasedontheweightedaveragenumberofsharesofcommonstockoutstanding,includingallpotentiallyissuablesharesofcommonstock.DilutedEPSfortheninemonthsendedSeptember30,2016,andforthethreeandninemonthsendedSeptember30,2015,excludestheimpacttoincomeandthenumberofsharesoutstandingfromtheconversionofthe7.00%ConvertibleSeniorNotes,becausesuchimpactwouldbeantidilutive.

Earnings Per Share For the Three Months Ended For the Nine Months Ended

September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

NetincomeattributabletoCorEnergystockholders $ 9,231,185 $ 427,219 $ 21,576,833 $ 8,698,985

Less:preferreddividendrequirements 1,037,109 1,037,109 3,111,327 2,811,718

Netincomeattributabletocommonstockholders $ 8,194,076 $ (609,890) $ 18,465,506 $ 5,887,267

Weightedaverageshares-basic 11,872,729 11,924,148 11,909,431 10,266,380

Basic earnings (loss) per share $ 0.69 $ (0.05) $ 1.55 $ 0.57

Netincomeattributabletocommonstockholders(fromabove) $ 8,194,076 $ (609,890) $ 18,465,506 $ 5,887,267

Add:Aftertaxeffectofconvertibleinterest(1) 2,214,097 — — —

Incomeattributablefordilutivesecurities $ 10,408,173 $ (609,890) $ 18,465,506 $ 5,887,267

Weightedaverageshares-diluted 15,327,274 11,924,148 11,909,431 10,266,380

Diluted earnings (loss) per share $ 0.68 $ (0.05) $ 1.55 $ 0.57(1) The interest amounts in this line include the amortization of deferred costs and the amortization of the discount on the Convertible

Notes. There is no income tax effect due to the Company's REIT status.

14. SUBSEQUENT EVENTS

TheCompanyperformedanevaluationofsubsequenteventsthroughthedateoftheissuanceofthesefinancialstatementsanddeterminedthatnoadditionalitemsrequirerecognitionordisclosure,exceptforthefollowing:

Common Stock Dividend Declaration

OnOctober26,2016,ourBoardofDirectorsdeclaredthe2016thirdquarterdividendof$0.75pershareforCorEnergycommonstock.ThedividendispayableonNovember30,2016,toshareholdersofrecordonNovember15,2016.

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Preferred Stock Dividend Declaration

OnOctober26,2016,ourBoardofDirectorsalsodeclaredacashdividendof$0.4609375perdepositarysharefortheCompany’s7.375%SeriesACumulativeRedeemablePreferredStockforthequarterendingSeptember30,2016.ThepreferredstockdividendispayableonNovember30,2016,toshareholdersofrecordonNovember15,2016.

Four Wood Restructuring

Effective October 1, 2016, a portion of the Financing Notes with SWDwere restructured. The interest rate on the$4.0millionREITLoan was reduced to10percentandtherequiredprincipalamortizationwasdelayeduntilSeptember30,2018.TheCompanyisintheprocessofrestructuringtheremaining$1.0millionTRSloanwithSWD.Therestructuringisnotexpectedtohaveamaterialimpacttotheconsolidatedfinancialstatements.

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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,105NorthAmericanoilandgasproducershavefiledforbankruptcysincethebeginningof2015,61ofwhichfiledin2016(throughOctober 19). The parent companies of two of CorEnergy’s largest tenants, Energy XXI and Ultra Petroleum, have been among those companies declaringbankruptcy.

BetweenJuly1andOctober31,2016,CorEnergy’ssharepricedecreasedsixpercentto$27.08.ThiscomparestotheAlerianMLPIndex(“AMZ”)whichwasdownsixpercentandtheS&P500Index(“SPX”)whichincreasedonepercentoverthesametimeperiod.CorEnergy,AMZ,andSPXhitlowpointsonFebruary11,2016,of$10.90,$199.10,and$1,810.10,respectively.Thereboundsincethenwaslikelyinfluencedbyarecoveryintheoilandgasmarketsfromyear-to-datelowsof $26.05per barrel (WTI, onFebruary 11) and$1.611per MMbtu(onMarch 4), respectively,which in turn affects the health of EnergyXXIandUltraPetroleum.WTIcrudeoilpriceswere$46.86perbarrelonOctober31,2016,andnaturalgaspriceswere$3.026perMMBtu.ThesepricesrepresentadecreaseofthreepercentinWTIcrudeoilandathreepercentincreaseinnaturalgasbetweenJuly1andOctober31,respectively. Forup-to-datecommodityprices,pleaserefertohttp://www.eia.gov.

Aswithothercompaniesinvestedprimarilyinrealpropertyandrelatedinfrastructure,oursharepricecanbepositivelyornegativelyaffectedbythedecisions,ormarketperceptionofthedecisions,oftheFederalReservetoraise,maintain,orlowerinterestrates.InthemostrecentFederalReservemeetingonSeptember21,2016interest ratesremainedunchanged.Nonetheless,theFederalReservemayincreaseinterest ratesinupcomingquarters, whichinturncouldhaveaslightlyadverseeffectonourshareprice.

OnSeptember1,2016,RealEstatebecameaseparatesectorintheGlobalIndustryClassificationStandard("GICS").Analystsandnewssourcesexpectthatthiswill benefit real estate companies, which in the U.S. consist primarily of REITs, as capital will flow into the sector in order to maintain balanced portfolios.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.Webelievethatourbusinessofferscompaniesanalternativesourceofcapitalandweremainindiscussionswithcompanieswhodonotexpecttofile bankruptcy, but have needs for capital to exploit potential oil and gas reserves. Our team continues to assess these opportunities for assets which fit ourunderwritingcriteriaandwillprovidealong-termbenefittocurrentshareholdersthroughgrowthanddiversification.

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Basis of Presentation

The consolidated financial statements include CorEnergy Infrastructure Trust, Inc., as of September 30, 2016 , and its direct and indirect wholly-ownedsubsidiaries.Allsignificantintercompanyaccountsandtransactionshavebeeneliminatedinconsolidation.

RESULTS OF OPERATIONS

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

ThefollowingResultsofOperationsanalysisincludesLeaseRevenueandDepreciationExpenserelatedtothePNMLeaseAgreementandtheEIPleasedasset,whichwassoldonApril1,2015,fortheninemonthsendedSeptember30,2015.

The following is a comparison of lease revenues, security distributions, financing revenue, operating results, and expenses for the three and nine months endedSeptember 30, 2016 and 2015 :


September 30,2016

September 30,2015

September 30,2016

September 30,2015

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

Leases:

Leaserevenue $ 16,996,155 $ 16,966,056 $ 50,988,299 $ 31,102,036

OtherEquitySecurities:

Netcashdistributionsreceived 278,782 274,550 753,655 742,056

Financing:

Financingrevenue — 182,604 162,344 1,511,900

Operations:

Transportationanddistributionrevenue(1) 5,119,330 4,991,790 15,283,461 16,196,067

Transportationanddistributionexpense(2) (1,482,161) (1,503,713) (4,222,792) (5,791,994)NetOperations(excludingdepreciation,amortization,andAROaccretion) 3,637,169 3,488,077 11,060,669 10,404,073

Total Lease Revenue, Security Distributions, FinancingRevenue, and Operating Results $ 20,912,106 $ 20,911,287 $ 62,964,967 $ 43,760,065

Generalandadministrative (3,021,869) (2,837,762) (9,084,961) (7,311,610)

Non-ControllingInterestattributabletoAdjustedEBITDAItems (945,142) (971,243) (2,852,432) (2,912,908)

Adjusted EBITDA $ 16,945,095 $ 17,102,282 $ 51,027,574 $ 33,535,547 (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 nine months ended September 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 nine months ended September 30, 2016 and 2015, are presented on a gross basis andare included 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 nine months ended September 30, 2016 increased $19.2 million compared to the prior-year period, primarily due to theadditionoftheGIGSleaseonJuly1,2015.

FortheninemonthsendedSeptember30,2016, leaserevenueincreased$19.9millionovertheprior-yearperiod.Theincreasewasaresult of$20.3millioninincrementalrevenuefromtheGIGSleaseandanincreaseforthePortlandTerminalFacilityof$164thousandrelatedtocompletionoftheplannedconstructionprojectsinNovember2015,partiallyoffsetbya$638thousanddeclineinleaserevenuesduetotheterminationofthePNMLeaseAgreementonApril1,2015.

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ForeachofthethreemonthsendedSeptember30,2016and2015,MoGascontributed$2.7milliontoNetOperations(excludingdepreciationandamortization).Transportationrevenuestotaled$3.6millionforthecurrentandprior-yearperiodswhiletransportationcostsandexpenseswereapproximately$900thousand.FortheninemonthsendedSeptember30,2016and2015,MoGascontributed$8.3millionand$7.8million,respectively,toNetOperations(excludingdepreciationandamortization).Transportationrevenuestotaledapproximately$10.8millionforeachoftheperiodswhiletransportationcostsandexpenseswereapproximately$2.5millionand$2.9million,respectively.ThedeclineinMoGas'costsandexpensesversustheprior-yearperiodswasduetolegalfeesincurredinthefirsthalfof2015relatedtoobtainingapprovalforaplannedsale-leasebacktransactionwhichwassubmittedtoFERCinNovember2015,andsubsequentlyapprovedinJune2016.

ForthethreemonthsendedSeptember30,2016and2015,oursubsidiary,Omega,contributed$890thousandand$787thousand,respectively,toNetOperations(excludingdepreciationandamortization)fromitsnaturalgasoperations.FortheninemonthsendedSeptember30,2016and2015,Omega'scontributionwas$2.7millionand$2.6million,respectively.Omega'scontributionrepresentsthecontractrevenuesrelatedtodistributionofnaturalgasonourpipelineafterdeductingdistributionexpenses(excludingdepreciationandamortization)fortherespectiveperiods.

OurfinancingrevenueswerehistoricallyderivedfromourloanstoBBWSandSWD.AsofDecember31,2015,theCompanyhadrecordedaloanlossreserveontheBlackBisonloans.Duringthefirstquarterof2016,ourloantoSWDbecamedelinquent,atwhichtimetheCompanyrecordedaloanlossreserveandplacedtheFourWoodloanonnon-accrual basis, whichaccountsforthedeclineinrevenuesfromprioryear. SeeNote4, FinancingNotesReceivable ,foradditionalinformationontheBlackBisonfinancingnotesandtheFourWoodloans.

General and Administrative

Total general and administrative expenses for the three months ended September 30, 2016 and 2015,were$3.0 million and$2.8 million , respectively. Totalgeneral and administrative expenses for the nine months ended September 30, 2016 and 2015, were $9.1 million and $7.3 million , respectively. The mostsignificantcomponentsofthevariancefromtheprior-yearperiodsareoutlinedinthefollowingtableandexplainedbelow:


September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015

Managementfees $ 1,934,873 $ 1,716,423 $ 5,391,569 $ 4,055,919

Acquisitionandprofessionalfees 655,810 792,939 2,187,459 2,451,485

Otherexpenses 431,186 328,400 1,505,933 804,206

Total $ 3,021,869 $ 2,837,762 $ 9,084,961 $ 7,311,610

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.Additionally,expenseswerereducedbythewaiverofManagementfeesbythemanagementcompanyonthenon-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.TheincreaseincommonstockdividendspaidresultedinanincreaseinincentivefeespaidtotheManagerof$279thousandfor the nine months endedSeptember 30, 2016,as compared to the prior year. Incentive fees recorded for the three months endedSeptember30,2016,were$259thousand,anincreaseofapproximately$200thousandovertheprior-yearperiod.Thisincreasewasdrivenbytheincreaseinthequarterlydividendto$0.75persharenotedabove,aswellasboththesecondquarterandthirdquarterincentivefeesbeingrecordedtotheincomestatementduringthethreemonthsendedSeptember30,2016.TheManagervoluntarilywaivedapproximately$54thousandoftheincentivefeeforthesecondquarterthatwouldhaveotherwisebeenpayableunderthemanagementAgreement.Therewasnosuchwaiverforthethirdquarterincentivefee.SeeNote8,ManagementAgreement,foradditionalinformation.

AcquisitionandprofessionalfeesforthethreemonthsendedSeptember30,2016,decreased$137thousandto$656thousandversustheprior-yearperiod.FortheninemonthsendedSeptember30,2016,acquisitionandprofessionalfeesdecreased$264thousandto$2.2millionversustheprior-yearperiod.

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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the nine months ended September 30, 2016,declined$808 thousandcompared to the prior-year period primarily because the Company pursued opportunitiesduringthefirstthreemonthsof2015whichwerenotcompleted.

FortheninemonthsendedSeptember30,2016,professionalfeesincreased$544thousandversustheprior-yearperiod.Theyear-to-dateincreasewasprimarilyduetolegalfeesincurredinthemonitoringofourassetsatPinedaleandGIGSandtheMarch2016assignmentandmodificationofthePinedaleCreditFacility.AdditionalexpensesincurredrelatedtotheBlackBisonforeclosureandsaleactivitiesandthevaluationoftheFourWoodsREITLoancollateralalsocontributedtotheincrease.

OtherexpensesforthethreeandninemonthsendedSeptember30,2016and2015,increased$103thousandand$702thousand,respectively,versustheprior-yearperiods.TogetherwithvaluationandothercostsassociatedwiththeBlackBisonforeclosure,theincreaseswerepredominantlyrelatedtoBlackBisonoperatingcostssubsequenttotheforeclosure.Wealsoincurredadditionalcostsinconnectionwith:(i)theredesignofourwebsite;(ii)travelrelatedtomonitoringofourassetsandparticipationinindustryconferences;(iii)increasedsyndicateservicesfeesassociatedwiththeRegionsRevolver;and(iv)higherprintingandmailingexpensesassociatedwiththeCompany'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 EBITDAitemspresentedabovetoexcludetheportionattributabletoPrudential'snon-controllinginterest.ForthethreemonthsendedSeptember30,2016and2015,Prudential'sinterest in these items totaled$945thousandand$971thousand, respectively. For each of the nine months ended September 30, 2016and2015, Prudential'sinterestintheseitemstotaled$2.9million.

Adjusted EBITDA

Adjusted EBITDA attributable to CorEnergy Stockholders for the three months ended September 30, 2016 and 2015, was $16.9 million and $17.1 million ,respectively.FortheninemonthsendedSeptember30,2016and2015,adjustedEBITDAattributabletoCorEnergyStockholderswas$51.0millionascomparedto $33.5 million for the prior-year period. As noted above, the increase in adjusted EBITDA for the nine months ended September 30, 2016, was primarilyassociatedwith theacquisitionof GIGSinJune2015, partially offset byreducedrevenues relatedto our financingagreements andtheincrease in general andadministrativeexpenses.

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:

For the Three Months Ended For the Nine Months EndedSeptember 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015Adjusted EBITDA $ 16,945,095 $ 17,102,282 $ 51,027,574 $ 33,535,547OtherAdjustments:Distributionsanddividendsreceivedinpriorperiodpreviouslydeemedareturnofcapital(recordedasacostreduction)andreclassifiedasincomeinasubsequentperiod(1) — — 117,004 371,323Netrealizedandunrealizedgain(loss)onsecurities,noncashportion 1,429,599 (1,441,738) 998,377 (1,003,566)Depreciation,amortization,andAROaccretion (5,744,266) (5,836,665) (16,778,109) (13,381,483)Interestexpense,net (3,520,856) (3,854,913) (10,987,677) (6,129,073)

Provisionforloanlosses — (7,951,137) (5,014,466) (7,951,137)Non-controllinginterestattributabletodepreciation,amortization,andinterestexpense(2) 604,765 560,437 1,852,594 1,679,923Incometaxbenefit(expense) (483,152) 1,848,953 361,536 1,577,451Preferreddividendrequirements (1,037,109) (1,037,109) (3,111,327) (2,811,718)

Income (Loss) Attributable to Common Stockholders $ 8,194,076 $ (609,890) $ 18,465,506 $ 5,887,267(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.

Net Distributions and Dividends Recorded as Income

Thefollowingtablesummarizesthebreakoutofnetdistributionsanddividendsreportedasincomeontheincomestatement.Thetablebeginswiththegrosscashdistributionsanddividendincomereceivedfromourinvestmentsecuritiesduringthethreeand

32


ninemonthsendedSeptember30,2016and2015.Thisamountisincreasedbycashdistributionsreceivedinapriorperiodthatwere,atthetime,deemedareturnofcapitalandhavebeenreclassifiedduringthecurrentperiodasincome.Finally,areductionisshownforcashdistributionsreceivedinthecurrentperiodthataredeemedareturnof capital and, as such, arenot includedinincomereceivedfrominvestment securities. Theportionof thedistributionsthat aredeemedtobereturn of capital in anyperiodare basedonestimates madeat the timesuchdistributions are received. These estimates maysubsequently be revised basedoninformationreceivedfromtheportfoliocompanyaftertheirtaxreportingperiodsareconcluded,astheactualcharacterofthesedistributionsisnotknownuntilafterourfiscalyearend.

Net Distributions and Dividends Recorded as Income For the Three Months Ended For the Nine Months Ended

September 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015Grossdistributionsanddividendsreceivedfrominvestmentsecurities $ 278,782 $ 274,550 $ 753,655 $ 742,056

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

Less: Distributionsanddividendsreceivedincurrentperioddeemedareturnofcapitalandnotrecordedasincome(recordedasacostreduction)inthecurrentperiod 1,259 32,987 3,394 87,998

Net distributions and dividends recorded as income $ 277,523 $ 241,563 $ 867,265 $ 1,025,381

ForthethreemonthsendedSeptember30,2016,theincreaseinnetdistributionsanddividendsrecordedasincomeversustheprior-yearperiodisduetoachangeinthecharacterizationofourdistributionsreceivedfromLightfoot.Intheprioryear,ahigherpercentageofthecashwereceivedwasdeemedreturnofcapital,whereas in the current year, nearly all of the distributions received are considered dividend income. For the nine months ended September 30, 2016, the$158thousanddecreaseinnetdistributionsanddividendsrecordedasincomeversustheprior-yearperiodisprimarilyduetoa$254thousanddecreaseinadjustmentsrecorded in the first quarter of each year to reclassify previously unrealized gains as dividend income upon the receipt of the annual K-1s, which depict theCompany'sshareofincomeandlossesfromtheinvestmentinthesecurity.ThisdecreasewasoffsetbyadeclineinhowmuchofthecashdistributionsfromourinvestmentinLightfootwereconsideredareturnofcapitalversuscurrentincomein2016.

Net Realized and Unrealized Gain (Loss) on Securities

ForthethreemonthsendedSeptember30,2016,the$2.9millionincreaseinthenoncashportionofnetrealizedandunrealizedgainsfromotherequitysecuritiesversustheprior-yearperiodisprimarilyduetoacombinationofa$2.8millionincreaseinunrealizedgainsduetofluctuationsinthevaluationofLightfootplusa$115thousandchangeinthevaluationoftheBlackBisonwarrant.

FortheninemonthsendedSeptember 30, 2016, the$2.0millionincrease in noncashportionof net realized andunrealized losses fromother equity securitiesversustheprior-yearperiodisprimarilyduetoacombinationof:(i)a$1.6millionincreaseinunrealizedgainsduetofluctuationsinthevaluationofLightfoot;plus(ii)aprior-yearvaluationlossof$355thousandontheBlackBisonwarrant;minus(iii)a$239thousanddecreaseinunrealizedgainonthe18-monthescrowassociatedwiththesaleofVantaCorerecognizedduringtheprior-yearperiod;plus(iv)a$254thousanddecreaseinadjustmentsrecordedinthefirstquarterofeachyeartoreclassifypreviouslyunrealizedgainsasdividendincomeuponthereceiptoftheannualK-1s,whichdepicttheCompany'sshareofincomeandlossesfromtheinvestmentinthesecurity.

TheincreaseinvaluationofLightfootisprimarilyduetoanincreaseinthepublicsharepriceofArcLogistics(ARCX),aswellasadecreaseinthesubordinationdiscountrangingbetween11.8percentand15.2percentatDecember31,2015tobetween2.8percentand3.5percentatSeptember30,2016.ThesubordinationperiodisexpectedtoendinNovember2016.ARCXsharepriceonSeptember30,2016,was$15.05pershare,anincreaseof$1.78pershareversusthesharepriceonDecember31,2015.ThisincreasewaspartiallyoffsetbyadecreaseinthevaluationofGulfLNGduetoanincreaseinthemarketdiscountrateandadecreaseinthemarketgrowthrate,bothresultinginalowervaluation.

Depreciation, Amortization, and ARO Accretion

Depreciation,amortization,andAROaccretionexpenseforthethreemonthsendedSeptember30,2016,decreased$92thousandascomparedtotheprior-yearperiod.FortheninemonthsendedSeptember30,2016,depreciation,amortization,andAROaccretionexpensesincreased$3.4millionascomparedtotheprior-yearperiod.Theyear-to-dateincreaseisprimarilyattributabletothe

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acquisitionoftheGIGSinJune2015,partiallyoffsetbyadecreaseindepreciationexpenseduetotheterminationofthePNMLeaseAgreementonApril1,2015.

Interest Expense

ForthethreemonthsendedSeptember30,2016,interestexpensetotaledapproximately$3.5millionforthecurrent-yearperiodversus$3.9millionfortheprior-yearperiod.ThedecreaseisprimarilyattributabletotheCompanyinternallyrefinancingitsproratashareofthePinedaleCreditFacilityonMarch30,2016,whichresultedinareductionoftheoutstandingdebtbalancewiththirdpartiesincomparisonwiththeprior-yearperiod.

FortheninemonthsendedSeptember30,2016,interestexpensewasapproximately$11.0millionascomparedto$6.1millionfortheprior-yearperiod.Theyear-to-date increase is mainly the result of the debt incurred in connection with the acquisition of GIGS. The convertible notes accounted for approximately $4.2millionoftheincreasewhiletheCompany's$45.0milliondrawontheRegionsTermLoanaccountedforapproximately$786thousandoftheincrease.

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

DuetoPrudential's18.95percentownershipinterestinPinedaleLP,theCompanymustmakeadjustmentsfornon-controllinginterests.Prudential'sproportionateshareofdepreciation,amortization,andinterestexpenseincreased$44thousandand$173thousand,forthethreeandninemonthsendedSeptember30,2016,respectively.TheincreaseisattributabletointerestandrelatedcostsreportedasinterestexpenseassociatedwiththeamendmentandmodificationofthePinedaleCreditFacility.

Net Income Attributable to CorEnergy Stockholders

NetincomeattributabletoCorEnergystockholderswas$9.2millionforthethreemonthsendedSeptember30,2016,ascomparedto$427thousandfortheprior-year period. After deducting $1.0 million for the portion of preferred dividends that are allocable to the current period, net income attributable to commonstockholderswas$8.2million,or$0.69perbasiccommonshareand$0.68perdilutedcommonshare.FortheninemonthsendedSeptember30,2016,netincomeattributabletoCorEnergystockholderswas$21.6million,ascomparedto$8.7million,fortheprior-yearperiod.Afterdeducting$3.1millionfortheportionofpreferreddividendsthatareallocabletothecurrentperiod,netincomeattributabletocommonstockholderswas$18.5million,or$1.55perbasicand$1.55perdilutedcommonshareascomparedto$5.9million,or$0.57perbasicanddilutedcommonshare,fortheprior-yearperiod.

Common Equity Attributable to CorEnergy Shareholders per Share

AsofSeptember30,2016,ourcommonequitydecreasedbyapproximately$10.0millionto$351.8millionfrom$361.8millionasofDecember31,2015.Thisdecreaseprincipallyconsistsofdividendspaidtoourcommonshareholdersofapproximately$26.8millionandadditionaldecreasesattributableto$2.0millionused to repurchase common stock and a $205 thousand decline in accumulated other comprehensive income associated with our interest rate swaps. Thesedecreaseswerepartially offset bynet incomeattributable toCorEnergycommonstockholders ofapproximately$18.5millionand$554thousandofdividendsissuedundertheDRIPordirector'scompensationplans.Thetablebelowdoesnotreflectnon-controllinginterestequity.

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

SeriesACumulativeRedeemablePreferredStock7.375%,$56,250,000liquidationpreference($2,500pershare,$0.001parvalue),10,000,000authorized;22,500issuedandoutstandingatSeptember30,2016,andDecember31,2015 $ 56,250,000 $ 56,250,000Capitalstock,non-convertible,$0.001parvalue;11,876,389and11,939,697sharesissuedandoutstandingatSeptember30,2016,andDecember31,2015(100,000,000sharesauthorized) 11,876 11,940


Accumulatedothercomprehensiveincome(loss) (14,235) 190,797

Total CorEnergy Stockholders' Equity 408,001,792 418,034,244

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

Total CorEnergy Common Equity $ 351,751,792 $ 361,784,244

Commonsharesoutstanding 11,876,389 11,939,697

BookValueperCommonShare $ 29.62 $ 30.30

NAREIT FFO

FFOisawidelyusedmeasureoftheoperatingperformanceofrealestatecompaniesthatsupplementsnetincome(loss)determinedinaccordancewithGAAP.AsdefinedbytheNationalAssociationofRealEstateInvestmentTrusts,NAREITFFOrepresentsnet

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income (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, impairment losses of depreciableproperties,realestate-relateddepreciationandamortization(excludingamortizationofdeferredfinancingcostsorloanoriginationcosts),andafteradjustmentsforunconsolidatedpartnershipsandnon-controllinginterests.Adjustmentsfornon-controllinginterestsarecalculatedonthesamebasis.WedefineFFOattributabletocommonstockholdersasdefinedabovebyNAREITlessdividendsonpreferredstock.OurmethodofcalculatingFFOattributabletocommonshareholdersmaydifferfrommethodsusedbyotherREITsand,assuch,maynotbecomparable.

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,FFOAdjustedfor Securities Investments, andAFFOfor thethreeandninemonthsendedSeptember 30, 2016and2015.AFFOis a supplemental, non-GAAPfinancial measure whichwedefineas FFOAdjustedfor Securities Investment plusprovisionfor loanlosses, net of tax, transactioncosts, amortization of debtissuancecosts,amortizationofdeferredleasecosts,accretionofassetretirementobligation,incometaxexpense(benefit)unrelatedtosecuritiesinvestmentsandprovisionforloanlosses,above-marketrent, noncashcostsassociatedwithderivativeinstruments, andcertaincostsofanonrecurringnature, lessmaintenance,capitalexpenditures(ifany),amortizationofdebtpremium,andotheradjustmentsasdeemedappropriatebyManagement.Alsopresentedisinformationregardingtheweighted-averagenumberofsharesofourcommonstockoutstandingusedforthecomputationofpersharedata:

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

For the Three Months Ended For the Nine Months EndedSeptember 30,

2016 September 30,

2015 September 30,

2016 September 30,

2015Net Income attributable to CorEnergy Stockholders $ 9,231,185 $ 427,219 $ 21,576,833 $ 8,698,985Less:

PreferredDividendRequirements 1,037,109 1,037,109 3,111,327 2,811,718Net Income (loss) attributable to Common Stockholders $ 8,194,076 $ (609,890) $ 18,465,506 $ 5,887,267Add:

Depreciation 5,537,179 5,644,320 16,166,599 13,158,454Less:

Non-ControllingInterestattributabletoNAREITFFOreconcilingitems 411,455 411,455 1,234,364 1,234,365

NAREIT funds from operations (NAREIT FFO) $ 13,319,800 $ 4,622,975 $ 33,397,741 $ 17,811,356Add:

Distributionsreceivedfrominvestmentsecurities 278,782 274,550 753,655 742,056

Incometaxexpense(benefit)frominvestmentsecurities 645,083 (450,699) 703,211 50,398Less:

Netdistributionsanddividendincome 277,523 241,563 867,265 1,025,381Netrealizedandunrealizedgain(loss)onotherequitysecurities 1,430,858 (1,408,751) 1,001,771 (915,568)

Funds from operations adjusted for securities investments(FFO) $ 12,535,284 $ 5,614,014 $ 32,985,571 $ 18,493,997Add:

Provisionforloanlosses,netoftax — 6,667,823 4,409,359 6,667,823Transactioncosts 33,984 133,009 71,899 880,307Amortizationofdebtissuancecosts 469,004 699,386 1,556,607 1,313,026Amortizationofdeferredleasecosts 22,983 22,824 68,949 53,508Accretionofassetretirementobligation 184,104 169,521 542,561 169,521

Incometaxbenefit (161,931) (114,940) (459,640) (344,535)Amortizationofabovemarketleases — — — 72,987Unrealizedgainassociatedwithderivativeinstruments (60,513) (13,965) (2,818) (48,494)

Less:EIPLeaseAdjustment(1) — — — 542,809Non-ControllingInterestattributabletoAFFOreconcilingitems (10,715) 23,837 35,153 69,348

Adjusted funds from operations (AFFO) $ 13,033,630 $ 13,153,835 $ 39,137,335 $ 26,645,983

WeightedAverageSharesofCommonStockOutstanding:

Basic 11,872,729 11,924,148 11,909,431 10,266,380

Diluted(2) 15,327,274 15,408,998 15,379,792 11,466,292NAREIT FFO attributable to Common Stockholders

Basic $ 1.12 $ 0.39 $ 2.80 $ 1.73

Diluted(2) $ 1.01 $ 0.39 $ 2.60 $ 1.73

FFO attributable to Common Stockholders

Basic $ 1.06 $ 0.47 $ 2.77 $ 1.80

Diluted(2) $ 0.96 $ 0.47 $ 2.57 $ 1.79

AFFO attributable to Common Stockholders

Basic $ 1.10 $ 1.10 $ 3.29 $ 2.60

Diluted $ 0.98 $ 0.98 $ 2.94 $ 2.50(1) Based on the economic return to CorEnergy resulting from the sale of our 40 percent undivided interest in EIP, we determined that itwas appropriate to eliminate the portion of EIP lease income attributable to return of capital, as a means to more accurately reflect the EIPlease revenue contribution to CorEnergy-sustainable AFFO. CorEnergy believes that the portion of the EIP lease revenue attributable toreturn of capital, unless adjusted, overstates CorEnergy's distribution-paying capabilities and is not representative of sustainable EIPincome over the life of the lease. The Company completed the sale of EIP on April 1, 2015.(2) The number of weighted average diluted shares represents the total diluted shares for periods when the Convertible Notes weredilutive in the per share amounts presented. For periods presented without per share dilution, the number of weighted average dilutedshares for the period is equal to the number of weighted average basic shares presented.

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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

Our operating companies, MoGas and Omega, have stable revenues throughout the year and will complete necessary pipeline maintenance during the "non-heating"season,orquarterstwoandthree.Therefore,operatingresultsfortheinterimperiodsarenotnecessarilyindicativeoftheresultsthatmaybeexpectedforthefullyear.

ASSET PORTFOLIO AND RELATED DEVELOPMENTS

Fordetaileddescriptionsofourassetportfolioandrelatedoperations,otherthanourremainingprivateequitysecuritiesasofSeptember30,2016,pleasereferto"Item2-Properties"inourAnnualReportonForm10-KfortheyearendedDecember31,2015,andtoNotes3and4intheNotestotheConsolidatedFinancialStatements included in this report. This section provides additional information concerning material developments related to our asset portfolio that occurredduringtheperiodendedSeptember30,2016.

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 withcertaincreditors to provide support for a restructuring of its debt. CorEnergy's tenant under the GIGS Lease, Energy XXI GIGS Services, LLC has not filed forbankruptcy.Therefore,itsobligationsundertheGIGSLeasearecurrentlynotsubjecttothebankruptcyproceedings.

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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,CorEnergyprovidedaconditionalwaivertocertainremediesofthesedefaults.ThisallowedCorEnergy’stenanttoremainoutsidethebankruptcyproceedings.

OurtenantcontinuestomaketimelyrentpaymentsinaccordancewiththeGIGSLeaseAgreement.EXXIhasstateditsintentionstocontinuenormaloperationsduringthebankruptcyproceedings.InSeptember,EXXIreceivedapprovalofitsSupplementtotheThirdAmendedDisclosureStatement.ThedeadlinetoobjecttotheReorganizationPlanandassumedcontractsandleaseswasOctober31,2016andthedeadlineforvotingonthePlanofReorganizationwasNovember1,2016.TheconfirmationhearingisscheduledtobeginonNovember7,2016.Thebankruptcycourt extendedEXXI’sexclusivityperiodtoNovember14,2016.CorEnergywillcontinuetomonitor,andtakeappropriateactionsto,theinformationdisclosedthroughouttheproceedings.

OnApril25,2016,EXXIwasdelistedfromtheNASDAQStockMarketasaresultoffailingtomeetcertainlistingstandards.EXXIhasbeguntradingontheOTCPinkMarketunderthesymbolEXXIQ.

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.UltraWyominghasnotfiledamotiontorejectthePinedaleLease.

OurtenantcontinuestomaketimelyrentpaymentsinaccordancewiththePinedaleLeaseAgreement.UPLhasstateditsintentionstocontinuenormaloperationsduringthebankruptcyproceedings.OnJuly27,2016,UltraPetroleumfiledwiththeU.S.BankruptcyCourtamotiontoextendtheexclusiveperiodduringwhichtheCompanycanfileaChapter11planandsolicitacceptancesthereofthroughandincludingFebruary28,2017andApril30,2017,respectively.

OnAugust30,2016,CorEnergyfiledproofsofclaimwiththebankruptcycourthandlingtheUltraPetroleumbankruptcies.ThesefilingsweremadepriortotheSeptember 1, 2016deadlinefor proofs of claimtobefiledandwereintendedtoprotect theinterest of CorEnergyshareholders basedoncertainrights grantedunderguaranteeandindemnificationprovisionsinthelease.

OnSeptember20,2016,theCompanyfiledamotiontodismissthetenant,UltraWyomingfromtheUltraPetroleumbankruptcyprocessbasedontheCompany’sbeliefinthetenant’ssolvency,towhichUltraPetroleumfiledaresponse.Sincethattime,UPLpublishedfinancialprojectionswhichCorEnergybelievesarebasedonuninterrupted access to the Pinedale LGS,andstatedthat losingaccess to the Pinedale LGSuponrejection of the lease wouldcost hundreds of millions ofdollarsinforegonerevenue.SinceUPLhasnonethelessthreatenedtorejecttheleaseandconstructaccesstoareplacementsystem,CorEnergyandUltraWyominghaveagreedtoanon-bindingmediation.December15,2016hasbeensetasthenewdeadlineforUltraWyomingtoacceptorrejectthePinedaleLGSLease.ThepreviousdeadlineforacceptanceorrejectionhadbeenNovember28,2016.CorEnergywillcontinuetomonitor,andtakeappropriateactionsto,theinformationdisclosedthroughouttheproceedings.

OnMay2,2016,UPLwasdelistedfromtheNYSEStockMarketasaresultoffailingtomeetcertainlistingstandards.UPLhasbeguntradingontheOTCPinkMarketunderthesymbolUPLMQ.

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.

LacledeGasextendeditscurrentcontractforMoGastoprovidenaturalgastransportationservicesbyoneyeartoexpireonOctober31,2017.

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Black Bison

OnFebruary29,2016,theCompanyforeclosedon100percentoftheequityofBBIntermediate,theholdingcompanyofBlackBisonWaterServices,LLC,theborroweroftheBlackBisonfinancingnotereceivable.SeeNote4intheNotestotheConsolidatedFinancialStatementsinthisreportforadditionalinformation.

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

AsofSeptember30,2016noroyaltypaymentshavebeenreceived.

Four Wood

EffectiveOctober1,2016,aportionoftheFinancingNoteswithSWDEnterprises,LLCwererestructured.Theinterestrateonthe$4.0millionREITLoanwasreduced to 10 percent and required principal amortization was delayed until September 30, 2018. We expect to convert the $1.0 million TRS loan into anownership interest in the borrower in the form of a preferred equity interest. Cash and accrued interest will not increase AFFO until Four Wood generatessustainableoperatingmarginsandthereserveforcollectionhasbeenremoved.

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.Asaresultofthenewcontractnaturalgasandpropanecosts are being presented net in transportation and distribution revenue. SeeNote 2 in the Notes to the Consolidated Financial Statements in this report foradditionalinformation.

Private Security Assets

AsofSeptember30,2016,ourinvestmentinLightfootrepresentsapproximately1.4percentoftheCompany’stotalassets.ThefollowingtableisasummaryofthefairvalueofLightfootatSeptember30,2016,ascomparedtothefairvalueatDecember31,2015:

Fair Value of Other Equity Securities Fair Value At Fair Value At September 30, 2016 December 31, 2015 $ Change % ChangeLightfoot $ 9,465,736 $ 8,393,683 $ 1,072,053 12.8%

Lightfoot

Thefair valueofLightfootasofSeptember30,2016increasedapproximately$1.1million,or12.8percent, ascomparedtothevalueatDecember31,2015,primarilyduetothechangeinvalueofArcLogistics'publiclytradedsharesandadecreaseinthesubordinationdiscountrangingbetween11.8percentand15.2percentatDecember31,2015toadiscountbetween2.8percentand3.5percentatSeptember30,2016.ThesubordinationperiodisexpectedtoendinNovemberof2016.

DuringthethreeandninemonthsendedSeptember30,2016,theCompanyreceiveddistributionsof$276thousandand$744thousand,respectively,andexpectsthesedistributionstobefundedprimarilybyLightfoot’sdistributionsfromArcLogisticsandGulfLNG.However,boththeabilityofArcLogisticsandGulfLNGto make quarterly distributions and the amount of such distributions will be dependent on Arc Logistics' and Gulf LNG's business results, and neither ArcLogistics, Gulf LNG, nor Lightfoot is under any obligation to make such distributions. On March 1, 2016, an affiliate of Gulf LNG received a Notice ofDisagreementandDisputedStatementsandaNoticeofArbitrationfromEniUSAGasMarketingL.L.C("EniUSA"),oneofthetwocompaniesthathadenteredintoaterminaluseagreementforcapacityoftheliquefiednaturalgasfacilityownedbyGulfLNGanditssubsidiaries.ShouldEniUSAterminateits'agreementwith Gulf LNG, this could materially impact Arc Logistics and Gulf LNG's ability to fund their distributions to the Company. Accordingly, there can be noassurancethatourexpectationsconcerning2016distributionsfromLightfootwillberealized.

VantaCore

Thecompanyreceiveditsfinalescrowdistributionof$1.4milliononApril1,2016.

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LIQUIDITY AND CAPITAL RESOURCES

Overview

AtSeptember30,2016,wehadliquidityofapproximately$63.4millioncomprisedofcashof$10.1millionplusrevolveravailabilityof$53.3million.Weusecash flows generated from our operations to fund current obligations, projected working capital requirements, debt service payments and dividend payments.Management expects that future operating cash flows, along with access to financial markets, will be sufficient to meet future operating requirements andacquisition opportunities. If our ability to access the capital markets is restricted or if debt or equity capital were unavailable onfavorable terms, or at all, ourabilitytofundacquisitionopportunitiesortocomplywiththeREITdistributionrulescouldbeadverselyaffected.

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

Cash Flows - Operating, Investing, and Financing Activities

CashFlowsfromOperatingActivities

For the nine months ended September 30, 2016, cash provided by operating activities totaled approximately $41.7 million , representing an increase ofapproximately$10.7millionascomparedtotheninemonthsendedSeptember30,2015.Thesignificantfactorsimpactingtheincreaseareasfollows:

• GIGSleasepaymentsbeganJuly1,2015andtherefore,ninemonthsofrentduring2016versusonlythreemonthsduring2015hasprovided$16.4million.

• ProceedsfromfinalescrowdistributionrelatedtothesaleofVantacoreofapproximately$1.4millionwerereceivedApril1,2016.• Increaseininterestpaidofapproximately$5.2millionprimarilyrelatedtothefinancingoftheJune2015GIGStransactionthroughtheissuanceof$115

millioninConvertibleNotesanda$45milliondrawontheRegionsCreditFacility.• Duetoreduceddrillinganddisposalactivitiesinourborrowers'areasofoperations,revenuefromourfinancingnotesdecreasedfromthepriorperiodby

approximately$1.3million.

For the nine months ended September 30, 2015, cash provided by operating activities totaled approximately $30.9 million representing an increase ofapproximately$13.1millionoverthesameperiodoftheprioryear.Thesignificantincreasesanddecreasesincashprovidedbyoperatingactivitiesthatprimarilydrovethischangeincludedthefollowing:

• ThenetoperatingresultsofMoGas,acquiredinNovember2014,provided$8.4million.• WhenthePortlandTerminalwasacquiredinJanuary2014,acertainamountofconstructionwasrequiredbeforetheterminalbecamefullyoperational.

Accordingly, thelessorwasgrantedapartial rentholidayduringthefirst sixmonthsofthelease. FortheninemonthsendedSeptember30,2015,thePortlandTerminalleasepaymentshadincreasedtothefullamountofthebaserentandhadalsoincreasedasaresultofnearly$9.7millionincompletedconstructionprojects,contributingapproximately$2.0milliontotheincreaseincashprovidedbyoperatingactivitiesascomparedtotheprioryear.

• AdditionalpaymentstotheCompanyresultingfromaJuly2014increasetotheBlackBisonfinancingnotesandDecember2014initialfundingoftheFourWoodfinancingnotescontributednearly$946thousandtotheincreaseoverprioryear.

• StartingJuly2015,cashprovidedbytheGIGSleasepaymentsforthecurrentquarterwas$7.9million.• InconjunctionwiththeagreementtosellEIPtoPNMonApril1,2015uponexpirationofthelease,theleasepaymentsthatwouldhavebeendueoverthe

remainderofthetermwereacceleratedandpaidinfullonJanuary1,2014.Therefore,thefirsthalfof2014includednearly$4.3millioninadvancerentalpayments.

• AnetincreaseintheCompany’sassetbasefortheninemonthsendedSeptember30,2015ascomparedtotheprioryearperiodresultedinapproximately$1.7millioninadditionalmanagementfeespaidtoCorridor.

• Increaseincashinterestpaidofapproximately$553thousandduetoincreasedfacilitysizesandborrowings.• Increaseincashtaxespaidofapproximately$179thousandduetoestimatedtaxpaymentsmadestartingin2015relatedtotheLightfootinvestment.

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CashFlowsfromInvestingActivities

Significantfactorsimpactingthe$194thousandofcashprovidedbyinvestingactivitiesduringtheninemonthsendedSeptember30,2016,wereasfollows:

• Netproceedsfromthesaleofassetsandliabilitiesheldforsaleof$645thousand.• Purchasesofpropertyandequipmentof$476thousand.• ProceedsreceivedonforeclosureofBBIntermediateof$223thousand.• FundingtocloseoperationsofBlackBisonandFourWoodfinancingnotesof$202thousand.

Significantfactorsimpactingthe$243.8millionofcashusedininvestingactivitiesduringtheninemonthsendedSeptember30,2015,includedthefollowing:

• Deployedapproximately$246.5milliontoacquiretheGIGSassets.• $3.7millionofcapitalimprovementsinconnectionwiththePortlandTerminalfacility.• ThesaleoftheEIPassetonApril1,2015providedadditionalcashofapproximately$7.7million.

CashFlowsfromFinancingActivities

Significantfactorsimpactingthe$46.4millionofcashusedinfinancingactivitiesduringtheninemonthsendedSeptember30,2016,includedthefollowing:

• Repurchasesofcommonstockofapproximately$2.0million.• Repurchasesofconvertibledebtofapproximately$900thousand.• Commonandpreferreddividendspaidof$26.3millionand$3.1million,respectively.• $44.0milliondrawnontheRegionsrevolverforuseinconnectionwiththePinedalerefinancing.• Principalpaymentsof$53.0millioninconnectionwiththePinedalefacility.• Principalpaymentsonthetermnoteof$4.8million.

Significantfactorsimpactingthe$222.2millionofcashprovidedbyfinancingactivitiesduringtheninemonthsendedSeptember30,2015,includedthefollowing:

• The January 2015 preferred stock offering generated approximately $54.2 million, of which, $32.0 million was subsequently used to pay down theRegionsRevolver.

• InconnectionwiththeacquisitionoftheGIGSassets,theCompanyraisedatotalof$226.7millionasfollows:◦ $73.2millioninnetproceedsraisedinafollow-oncommonstockoffering;◦ $111.3millioninnetproceedsfromthe7.00%ConvertibleNoteoffering;and◦ $42.0milliondrawnontheRegionsRevolver.

• OnJuly8,2015thecompanydrew$45milliononatermnote,theproceedsofwhichwereusedtopayofftheRegionsRevolver.Thecompanyalsomadeitsfirstprincipalpaymentof$900thousandonthetermnote.

• Commonandpreferreddividendspaidofapproximately$19.9millionand$2.5million,respectively.• Distributionstonon-controllinginterestsof$2.0million• Principalpaymentsonthe$70milliontermloantotaling$2.6million.

Revolving and Term Credit Facilities

CreditFacilitiesoftheREIT

EffectiveasofMarch4,2016,theCompanyandtherequiredlendersundertheRegionsRevolverexecutedaLimitedConsentandAmendment(the“Consent”).PursuanttosuchConsent,amongotherthings,thelendersconsentedtotheCompany’suseofupto$49.0million,upto$44.0millionofwhichcouldcomefromtheproceedsofdrawsundertheRegionsRevolver,inconnectionwiththerefinancingofPinedaleLP’soutstandingindebtednessdueunderthe$70millionsecuredtermcreditfacilityonMarch30,2016,asdiscussedbelow.TheCompanypaidfeestothelendersinconnectionwiththeConsentinanaggregateamountof$193thousand. The Company subsequently drew $44 million on the Regions Revolver in conjunction with the refinancing of the Pinedale Facility and as ofSeptember30,2016,hasapproximately$53.3millionofavailableborrowingcapacityontheRegionsRevolver.

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

PinedaleFacility

PinedaleLP's$70.0millionsecuredtermcreditfacilitywassettoexpireattheendofDecember2015;however,theCompanyextendedthefacilitythroughMarch30,2016.UndertheDecember31,2015,extensionamendment,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 thederivative contracts, representing half of the amount hedged. Theremaining derivative with a notional amount of $26.3 million was de-designated fromhedgeaccounting.

RefertoNote10intheNotestotheConsolidatedFinancialStatementsincludedinthisreportforadditionalinformation.

ConvertibleNotes

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

MoGasCreditFacility

AsofSeptember30,2016,theco-borrowersareincompliancewithallcovenantsandtherehadbeennoborrowingsagainsttheMoGasRevolver.

Mowood/OmegaRevolver

TheMowood/OmegaRevolverisusedbyOmegaforworkingcapitalandgeneralbusinesspurposes,isguaranteedandsecuredbytheassetsofOmega.OnJuly28,2016thepreviousmaturitydateofJuly31,2016wasamendedandextendedtoJuly31,2017.InterestaccruesatLIBORplus4percentandispayablemonthlyinarrearswithnounusedfee.TherewasnooutstandingbalanceatSeptember30,2016.

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'sabilitytomakedistributionsistiedto AFFOand applicable REIT distribution requirements, and provides that, in the absence of any acceleration of maturity following an Event of Default, theCompanymaymakedistributionsequaltothegreateroftheamountrequiredtomaintaintheCompany'sREITstatusand100percentofAFFOforthetrailing12-monthperiod.

The$70millionsecuredtermcreditfacilityissubjectto(i)aminimuminterestratecoverageratioof5.5to1.0;(ii)amaximumleverageratioof3.25to1.0;and(iii)aminimumnetworthof$115.0million,eachmeasuredatthePinedaleLPlevelandnotattheCompanylevel.AsaresultoftheMarch30,2016refinancingtheminimuminterestcoverageratiowasamendedtoaratioof3.0to1.0.WewereincompliancewithallcovenantsatSeptember30,2016.

Equity Offerings

OnFebruary18,2016,wehadanewshelfregistrationstatementdeclaredeffectivebytheSEC,pursuanttowhichwemaypubliclyofferadditionaldebtorequitysecuritieswithanaggregateofferingpriceofupto$600.0million.

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As of September 30, 2016 , we have issued 24,754 shares of common stock under the Company's dividend reinvestment plan, reducing availability byapproximately$494thousandtoapproximately$599.5million.

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.Continuedgrowthofourassetportfoliowilldependinpartonourcontinuedabilitytoaccessfundsthroughadditionalborrowingsandsecuritiesofferings.Thefollowingisourliquidityandcapitalizationonthebelow-noteddates:

Liquidity and Capitalization September 30, 2016 December 31, 2015

Cashandcashequivalents $ 10,107,754 $ 14,618,740

Revolvingcreditfacility 44,000,000 —

Long-termdebt(includingcurrentmaturities) 149,172,020 216,864,752

Stockholders'equity:

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

Capitalstock,non-convertible,$0.001parvalue 11,876 11,940


Accumulatedothercomprehensive(loss)income (14,235) 190,797

CorEnergyequity 408,001,792 418,034,244

TotalCorEnergycapitalization $ 601,173,812 $ 634,898,996

Wealsohavetwolinesofcreditforworkingcapitalpurposesfortwoofoursubsidiarieswithmaximumavailabilityof$3.0millionand$1.5million.

Liquidity Analysis

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

OursourcesofliquidityasofSeptember30,2016,topayourremaining2016commitmentsincludetheamountsavailableunderourrevolvingcreditfacilitiesofapproximately$54.8millionandunrestrictedcashonhandofapproximately$10.1million.AsauthorizedbyourBoardofDirectors,wemayuseourliquiditytopurchaseupto$10.0millionofourcommonstockandupto$15.0millionoffacevalueofourconvertibledebt,subjecttomarketconditionsandcompliancewithallapplicableregulatoryrequirements.AsofSeptember30,2016,theCompanyhadrepurchasedapproximately$2.0millionofcommonstockand$1.0millionoffacevalueoftheconvertibledebt.SeeNotes11and12intheNotestotheConsolidatedFinancialStatementsinthisreport,forconvertibledebtrepurchasedandsharesofcommonstockpurchased,respectively.

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

Private Securities Investments

AsofSeptember30,2016, ouronlyremainingsecurities investment wasLightfoot. Foradditional informationconcerningLightfoot andrelateddevelopmentsduring2016,pleaserefertothediscussionpresentedaboveinthisItem2undertheheading“AssetPortfolioandRelatedDevelopments.”

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

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CONTRACTUAL OBLIGATIONS

ThefollowingtablesummarizesoursignificantcontractualpaymentobligationsasofSeptember30,2016:

Contractual Obligations

Notional Value Less than

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

yearsPinedaleLPDebt(2) $ 9,574,465 $ 668,556 $ 1,337,112 $ 7,568,797 $ —InterestpaymentsonPinedaleLPDebt(2) 751,537 1,342,124 892,729 —ConvertibleDebt $ 114,000,000 — — 114,000,000 —InterestpaymentsonConvertibleDebt 7,980,000 15,960,000 7,980,000 —RegionsTermNote(1) $ 38,355,000 6,460,000 12,920,000 18,975,000 —InterestpaymentonRegionsTermNote 1,387,203 2,031,667 183,850 —RegionsRevolver $ 44,000,000 — — 44,000,000 —InterestpaymentonRegionsRevolver 1,695,222 3,390,444 352,978 —Totals $ 18,942,518 $ 36,981,347 $ 193,953,354 $ —(1) The amount shown as the Notional Value for the Regions Term Note represents the outstanding principal balance at September 30,2016.(2) The amounts for Pinedale LP debt above represent Prudential's share of the principal and interest payments which is 18.95 percent ofthe total. The Company's share of the principal and interest are eliminated in consolidation as these became intercompany on March 30,2016, due to CorEnergy taking over with Prudential as Refinancing Lenders on the Pinedale LP note. See Footnote 10, Credit Facilities, forfurther information.

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

AsofSeptember30,2016,theCompanyhadthreesignificantleases.Foradditionalinformationconcerningeachoftheseleases,seeNote3intheNotestotheConsolidatedFinancialStatementsincludedinthisreport.

DIVIDENDS

Ourportfolioofrealpropertyassets,promissorynotes,andinvestmentsecuritiesgeneratescashflowtousfromwhichwepaydistributionstostockholders.FortheperiodendedSeptember30,2016, thesourcesof our stockholder distributions includeleaserevenue, transportationanddistributionrevenuefromourrealpropertyassets,anddistributionsfromourinvestmentsecurities.Distributionstocommonstockholdersarerecordedontheex-dividenddateanddistributionstopreferredstockholdersarerecordedwhendeclaredbytheBoardofDirectors.Thecharacterizationofanydistributionforfederalincometaxpurposeswillnotbedetermineduntilaftertheendofthetaxableyear.

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

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

OnAugust31,2016,theCompanypaidsecondquarterdividendsof$.075pershareofcommonstockand$0.4609375perdepositarysharefortheCompany's7.375%SeriesACumulativeRedeemablePreferredStock.

OnOctober26,2016,theCompany'sBoardofDirectorsdeclaredthirdquarterdividendsof$0.75pershareofcommonstockand$0.4609375perdepositarysharefortheCompany's7.375%SeriesACumulativeRedeemablePreferredStockpayableonNovember30,2016.

AREITisgenerallyrequiredtodistributeduringthetaxableyearanamountequaltoatleast90percentoftheREITtaxableincome(determinedunderInternalRevenueCodesection857(b)(2),withoutregardtothedeductionfordividendspaid).Weintendto

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adheretothisrequirementinordertomaintainourREITstatus.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.

A more complete discussion of our critical accounting estimates is presented under the heading “Critical Accounting Estimates” in Item 7, Management’sDiscussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the year endedDecember 31, 2015 ,aspreviouslyfiledwiththeSEC.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.

WeacquiredMoGasonNovember24,2014,andrecordedtheassets,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.AsofSeptember30,2016,wehavenotrecordedanyimpairmentsofgoodwill.

Long-Lived Assets

Ourlong-livedassetsconsistprimarilyofasubseamidstreampipelinesystem,liquidsgatheringsystem,petroleumproductsterminal,andnaturalgaspipelinesthathavebeenobtainedthroughabusinesscombinationandassetacquisitions.Theinitialrecordingoftheselong-livedassetswasatfairvalue,whichisestimatedbymanagementprimarilyutilizingmarket-relatedinformationandotherprojectionsontheperformanceoftheassetsacquired.Managementreviewsthisinformationtodetermineitsreasonablenessincomparisontotheassumptionsutilizedindeterminingthepurchasepriceoftheassetsinadditiontoother

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market-basedinformationthat wasreceivedthroughthepurchaseprocessandother sources. Theseprojectionsalsoincludeprojectionsonpotential obligationsassumedintheseacquisitions.Duetotheimprecisenatureoftheprojectionsandassumptionsutilizedindeterminingfairvalue,actualresultscan,andoftendo,differfromourestimates.

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.AsofSeptember30,2016,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. WithrespecttoourequitysecuritiesasofSeptember30,2016,therewerenomaterialchangestoourmarketriskexposureascomparedtotheendofourprecedingfiscalyearendedDecember31,2015.

AsofSeptember30,2016,thefairvalueofoursecuritiesportfolio(excludingshort-terminvestments)totaledapproximately$9.5million.Weestimatethattheimpactofa10percentincreaseordecreaseinthefairvalueofthesesecurities,netofrelateddeferredtaxes,wouldincreaseordecreasenetassetsapplicabletocommonshareholdersbyapproximately$590thousand.

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.AsofSeptember30,2016,wehad$151.6millioninlong-termdebt(netofcurrentmaturities)and$44millionborrowedunderalineofcredit.TheCompanyusesinterestrateswapstomanageitsinterestraterisk.Thevaluationoftheseinstrumentsisdeterminedusingwidelyacceptedvaluationtechniquesincludingdiscountedcashflowanalysisontheexpectedcashflowsofeachderivative.Thisanalysisreflectsthecontractualtermsofthederivatives,includingtheperiodtomaturity,andusesobservablemarket-basedinputs,includingforwardinterestratecurves.Thefairvaluesofinterestrateswapsaredeterminedusingthemarketstandardmethodologyofnettingthediscountedfuturefixedcashpaymentsandthediscountedexpectedvariablecashreceipts.Thevariablecashreceiptsarebasedonanexpectationoffutureinterestratesderivedfromobservablemarketinterestrateforwardcurves.Changesininterestratescancauseinterestchargestofluctuateonthatportionofourvariableratedebtwhichisnothedged.

On March 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;andtoincreasetheLIBORRate Spread to seven percent (7.0 percent) per annum. The Company also terminated one of its original derivative contracts, leaving an interest rate swapderivativecontractwithanotionalamountof$26.3millionasofMarch30,2016.

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VariableratedebtasofSeptember30,2016,was$9.6millionunderthePinedalefacility,$44.0millionundertheRegionsRevolver,and$38.4millionundertheRegions TermNote. These variable rate debt instruments total$65.7millionof variable rate debt after giving effect to our$26.3millioninterest rate swapatSeptember30,2016.A100basispointincreaseordecreaseincurrentLIBORrateswouldresultina$728thousandincreaseordecreaseofinterestexpensefortheninemonthsendedSeptember30,2016.AsofSeptember30,2016,thefairvalueofourhedgederivativeliabilitytotaledapproximately$49thousand.Weestimatethattheimpactofa100basispointincreaseintheone-monthLIBORratewouldincreasethevalueoftheinterestrateswapby$307thousand,whileadecreaseof100basispointswoulddecreasethevalueoftheinterestrateswapby$220thousandasofSeptember30,2016.

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, thatoccurredduringthequarterlyperiodendingSeptember30,2016,thathavemateriallyaffected,orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Wearenotcurrentlysubjecttoanymateriallegalproceedings,nor,toourknowledge,isanymateriallegalproceedingthreatenedagainstus.

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 anunderstandingofourbusiness,financialcondition,andoperatingresultsforthequarterendedSeptember30,2016.EachriskfactorbelowamendsandrestatesthecorrespondingriskfactorpreviouslydisclosedinPartI,Item1A.,RiskFactorsofourAnnualReportonForm10-KforthefiscalyearendedDecember31,2015.Other than as set forth below, there have been no material changes to the risk factors contained in our Annual Report on Form 10-K for the year endedDecember31,2015.

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 components of our leased infrastructure real property assets andassociated lease revenues and will materially impact the results of our business.

TheGrandIsleGatheringSystemrepresentedapproximately38percentofourtotalassetsasofSeptember30,2016andDecember31,2015,respectively,andtheleaseundertheGrandIsleLeaseAgreementwiththeEXXITenantrepresentedapproximately46percentand29percentofourtotalrevenuefortheninemonthsendedSeptember30,2016,andtheyearendedDecember31,2015,respectively.ThePinedaleLGSrepresentedapproximately30percentofourtotalassetsasofbothSeptember30,2016,andDecember31,2015,andtheleasepaymentsunderthePinedaleLeaseAgreementwithUltraWyoming

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representedapproximately23percentand29percentofourtotalrevenuefortheninemonthsendedSeptember30,2016,andtheyearendedDecember31,2015,respectively.

EXXI,thecorporateparentandguarantoroftheobligationsofEXXITenantundertheGrandIsleLeaseAgreementandcertainentitiesaffiliatedwithitfiledforbankruptcyonApril14,2016.TheEXXITenantdidnotfileforbankruptcy.Theentitiesthatdidfileforbankruptcysubsequentlysought,andobtainedfromthebankruptcycourt,anordercharacterizingusasacriticalvendor.Thischaracterizationensurescontinuedpaymenttousofrentalpaymentsduringthebankruptcy.AllpaymentsduetousfromtheEXXITenanthavebeentimelypaid.

InSeptember2016,EXXIreceivedapprovalofitsSupplementtotheThirdAmendedDisclosureStatement.ThedeadlinetoobjecttotheReorganizationPlanandassumedcontractsandleaseswasOctober31,2016andthedeadlineforvotingonthePlanofReorganizationwasNovember1,2016.TheconfirmationhearingisscheduledtobeginonNovember7,2016.ThebankruptcycourtextendedEXXI’sexclusivityperiodtoNovember14,2016.

UltraWyoming,thelesseeofthePinedaleLGS,aswellasUltraPetroleumandUltraResources,theguarantorsofUltraWyoming'sobligationsastenantunderthePinedaleLeaseAgreement,eachfiledforbankruptcyonApril29,2016.AllpaymentsduetousunderthePinedaleLeaseAgreementhavebeentimelypaid.

OnAugust30,2016,wefiledproofsofclaimwiththebankruptcycourthandlingtheUltraPetroleumbankruptcies.ThesefilingsweremadepriortotheSeptember1, 2016 deadline for proofs of claim to be filed and were intended to protect the interests of CorEnergy shareholders based on certain rights granted underguaranteeandindemnificationprovisionsinthelease.

OnSeptember20,2016,wefiledamotiontodismissthetenant,UltraWyoming,fromtheUltraPetroleumbankruptcyprocessbasedonourbeliefinthetenant'ssolvency.Inaresponsivebankruptcyfiling,UltraPetroleumdisclosedanalternativetoourPinedaleLGSthatitacquiredwhenitboughtupstreamreservesfromShellin2014andindicatedthatitcouldmoveproductionoffoursystemtothealternativesystemwitharelativelysmallcapitalinvestment.UltraPetroleumlateracknowledgedthatlosingaccesstothePinedaleLGSduetoleaserejectionwouldcosthundredsofmillionsofdollarsinforegonerevenueandthatcostestimatesrelatedtoswitchingtothealternatesystemdidnotincludepaymentofanydamagestouswhichmayresultfromsuchactions.Thepartiesagreedtonon-bindingmediationandagreedtoextendthedeadlineforUltraWyomingtoacceptorrejectthePinedaleLeaseuntilDecember15,2016.

CurrentinformationabouttheEXXIbankruptcyandacompletediscussionoftherisksrelatedtoEXXI'sbusinesscanbefoundinEXXI'sQuarterlyReportonForm10-Qforthequarter endedMarch31,2016,andits AnnualReport onForm10-KfortheyearendedJune30,2016.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.

48


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.

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

DuringthethreemonthsendedSeptember30,2016wedidnotsellanysecuritiesthatwerenotregisteredunderthe1933Act,nordidwerepurchaseanyequitysecuritiesoftheCompany.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Notapplicable.

ITEM 5. OTHER INFORMATION

None.

49


ITEM 6. EXHIBITS

ExhibitNo. Description of Document12.1 ComputationofRatioofEarningstoCombinedFixedChargesandPreferredStockDividends-filedherewith31.1 CertificationbyChiefExecutiveOfficerpursuanttoExchangeActRule13a-14(a),asadoptedpursuanttoSection302ofthe

Sarbanes-OxleyActof2002-filedherewith31.2 CertificationbyChiefAccountingOfficerpursuanttoExchangeActRule13a-14(a),asadoptedpursuanttoSection302ofthe

Sarbanes-OxleyActof2002-filedherewith32.1 CertificationbyChiefExecutiveOfficerandChiefFinancialOfficerpursuantto18U.S.C.Section1350,asadoptedpursuantto

Section906oftheSarbanes-OxleyActof2002-furnishedherewith101 ThefollowingmaterialsfromCorEnergyInfrastructureTrust,Inc.’sQuarterlyReportonForm10-Qforthethreeandninemonths

endedSeptember30,2016,formattedinXBRL(ExtensibleBusinessReportingLanguage):(i)theConsolidatedBalanceSheets,(ii)theConsolidatedStatementsofIncomeandComprehensiveIncome,(iii)theConsolidatedStatementsofEquity,(iv)theConsolidatedStatementsofCashFlowsand(iv)theNotestoConsolidatedFinancialStatements-furnishedherewith

50


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) November 4, 2016

By: /s/DavidJ.Schulte David J. Schulte Chief Executive Officer and Director (Principal Executive Officer) November 4, 2016

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

For the NineMonths EndedSeptember 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 $ 20,346,099 $ 11,782,422 $ 6,973,693 $ 2,967,257 $ 19,857,050 $ (515,658)

Fixedcharges(1) $ 10,987,677 $ 9,781,184 $ 3,675,122 $ 3,288,378 $ 81,123 $ 416,137

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

Distributedincomeofequityinvestees $ 867,265 $ 1,270,754 $ 1,836,783 $ 584,814 $ (279,395) $ 2,325Pre-taxlossesofequityinvesteesforwhichchargesarisingfromguaranteesareincludedinfixedcharges $ — $ — $ — $ — $ — $ —

Subtract:

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

Earnings 32,201,041 22,834,360 12,485,598 6,840,449 19,658,778 (97,196)

Combined Fixed Charges and PreferenceDividends:

Fixedcharges(1) $ 10,987,677 $ 9,781,184 $ 3,675,122 $ 3,288,378 $ 81,123 $ 416,137

Preferredsecuritydividend(2) 3,111,327 3,848,828 — — — —

Combined fixed charges and preference dividends 14,099,004 13,630,012 3,675,122 3,288,378 81,123 416,137

Ratio of earnings to fixed charges 2.93 2.33 3.40 2.08 242.70 (0.23)Ratio of earnings to combined fixed charges andpreference dividends 2.28 1.68 3.40 2.08 242.70 (0.23)

Combined Fixed Charges Deficiency (513,333)(1) Fixedchargesconsistofinterestexpense,asdefinedunderU.S.generallyacceptedaccountingprinciples,onallindebtedness(2)Inthecurrentyearcolumn,hislinerepresentstheamountofpreferredstockdividendsaccumulatedasofSeptember30,2016.

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:November4,2016 /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:November4,2016 /s/RebeccaM.Sandring RebeccaM.Sandring ChiefAccountingOfficer/Treasurer

Exhibit 32.1

SECTION 906 CERTIFICATION

PursuanttoU.S.C.Section1350,asadoptedpursuanttoSection906oftheSarbanes-OxleyActof2001,theundersignedofficersofCorEnergyInfrastructureTrust,Inc.(the“Company”),herebycertifythattheQuarterlyReportonForm10-QfortheperiodendedSeptember30,2016,filedwiththeSecuritiesandExchangeCommissiononthedatehereof(the“Report”),fullycomplieswiththerequirementsofSection13(a)or15(d),asapplicable,oftheSecuritiesExchangeActof1934,asamended,andthattheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsoftheCompany.

/s/DavidJ.SchulteDavidJ.SchulteChiefExecutiveOfficerDate:November4,2016/s/RebeccaM.SandringRebeccaM.SandringChiefAccountingOfficer,TreasurerDate:November4,2016

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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