CorEnergy Responds to Energy XXI Ltd Chapter 11 Announcement

CorEnergy Responds to Energy XXI Chapter 11 Announcement

KANSAS CITY, Mo.–(BUSINESS WIRE)–Energy XXI Ltd and substantially all of its directly and indirectly owned subsidiaries (the “EXXI Debtor Group”) filed this morning a voluntary petition to reorganize, after reaching an agreement with certain creditors to provide support for a restructuring of its debt.

“As long as our tenant remains in compliance with our lease, including the timely payment of rent, we intend for GIGS Services to maintain its operations of our asset.”

The bankruptcy filing of Energy XXI Ltd, the guarantor of the Grand Isle Gathering System Lease (the “GIGS Lease”), and its failure to make interest payments to its creditors within the applicable cure period, would have constituted defaults under the terms of the GIGS Lease. However, to facilitate post-filing financing arrangements between the EXXI Debtor Group and its lenders, CorEnergy provided a conditional waiver to certain remedies available to it as a result of these non-monetary defaults.

CorEnergy’s tenant under the GIGS Lease, Energy XXI GIGS Services, LLC (“GIGS Services”), has not filed for bankruptcy. Therefore, its obligations under the GIGS Lease are currently not subject to the proceedings affecting the EXXI Debtor Group. CorEnergy has not compromised any remedies available to it for any default by GIGS Services under the GIGS Lease.

“GIGS Services relies on our subsea pipeline and onshore facilities to provide critical transportation, storage and processing services for the EXXI Debtor Group,” said CorEnergy Chief Executive Officer, Dave Schulte. Regarding the waiver, Schulte commented, “As long as our tenant remains in compliance with our lease, including the timely payment of rent, we intend for GIGS Services to maintain its operations of our asset.”

About CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR, CORRPrA) is a real estate investment trust (REIT) that owns essential midstream and downstream energy assets, such as pipelines, storage terminals, and transmission and distribution assets. We seek long-term contracted revenue from operators of our assets, primarily under triple net participating leases. For more information, please visit corenergy.corridortrust.com.

Forward-Looking Statements

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