USD Partners LP Completes Acquisition of Hardisty South Terminal Assets and IDR Elimination
April 06 2022 - 4:14PM
Business Wire
USD Partners LP (NYSE: USDP) (the “Partnership”) today announced
it has closed the previously announced acquisition of the Hardisty
South terminal assets (“Hardisty South”) from USD Group LLC (“USDG”
or the “Sponsor”), and exchanged the Sponsor’s economic general
partner interest in the Partnership (“GP Interest”) for a
non-economic GP Interest and eliminated the Sponsor’s incentive
distribution rights (“IDRs”) in the Partnership for total
consideration of $75 million in cash and approximately 5.75 million
common units (the “Transaction”). The cash portion of the
Transaction was funded with borrowings under the Partnership’s $275
million senior secured credit facility.
Today, the Partnership’s combined Hardisty Terminal has the
designed takeaway capacity of three and one-half unit trains per
day, or approximately 262,500 barrels per day, including the
newly-acquired Hardisty South Terminal. The acquisition of the
Hardisty South Terminal increases the size, scale and growth
capacity of the Partnership’s asset base, while optimizing
operational and commercial synergies of the Hardisty Terminal in
order to capitalize on the growth benefits associated with the
Sponsor’s Diluent Recovery Unit (“DRU”) program.
The Transaction was approved by the Board of Directors of the
general partner of the Partnership based on the approval and
recommendation of its Conflicts Committee, which consists entirely
of independent directors.
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited
partnership formed in 2014 by USDG to acquire, develop and operate
midstream infrastructure and complementary logistics solutions for
crude oil, biofuels and other energy-related products. The
Partnership generates substantially all of its operating cash flows
from multi-year, take-or-pay contracts with primarily investment
grade customers, including major integrated oil companies and
refiners. The Partnership’s principal assets include a network of
crude oil terminals that facilitate the transportation of heavy
crude oil from Western Canada to key demand centers across North
America. The Partnership’s operations include railcar loading and
unloading, storage and blending in on-site tanks, inbound and
outbound pipeline connectivity, truck transloading, as well as
other related logistics services. In addition, the Partnership
provides customers with leased railcars and fleet services to
facilitate the transportation of liquid hydrocarbons and biofuels
by rail. For additional information, please visit
www.usdpartners.com.
About USDG
USDG and its affiliates, which own the general partner of USD
Partners LP, are engaged in designing, developing, owning, and
managing large-scale multi-modal logistics centers and
energy-related infrastructure across North America. USDG solutions
create flexible market access for customers in significant growth
areas and key demand centers, including Western Canada, the U.S.
Gulf Coast and Mexico. Among other projects, USDG is currently
pursuing the development of a premier energy logistics terminal on
the Houston Ship Channel with capacity for substantial tank
storage, multiple docks (including barge and deepwater), inbound
and outbound pipeline connectivity, as well as a rail terminal with
unit train capabilities. For additional information, please visit
www.usdg.com. Information on websites referenced in this release is
not part of this release.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws, including statements
with respect to benefits of the transaction, future financial
results, growth, and performance of assets. Words and phrases such
as “expect,” “plan,” “intent,” “believes,” “projects,” “begin,”
“anticipates,” “able,” “subject to” and similar expressions are
used to identify such forward-looking statements. However, the
absence of these words does not mean that a statement is not
forward-looking. Forward-looking statements relating to the
Partnership are based on management’s expectations, estimates and
projections about the Partnership, its interests, USD’s projects
and the energy industry in general on the date this press release
was issued. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecast in such forward-looking statements. Factors that could
cause actual results or events to differ materially from those
described in the forward-looking statements include the impact of
the novel coronavirus (COVID-19) pandemic and related economic
impact and changes in general economic conditions and commodity
prices, as well as those factors set forth under the heading “Risk
Factors” and elsewhere in the Partnership’s most recent Annual
Report on Form 10-K and in the Partnership’s subsequent filings
with the Securities and Exchange Commission (many of which may be
amplified by the COVID-19 pandemic and the significant volatility
in demand for, and fluctuations in the prices of, crude oil,
natural gas and natural gas liquids). The Partnership is under no
obligation (and expressly disclaims any such obligation) to update
or alter its forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Category: Operations
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220406005772/en/
Adam Altsuler Executive Vice President, Chief Financial Officer
(281) 291-3995 aaltsuler@usdg.com
Jennifer Waller Senior Director, Financial Reporting &
Investor Relations (281) 991-8383 jwaller@usdg.com
USD Partners (NYSE:USDP)
Historical Stock Chart
From Mar 2024 to Apr 2024
USD Partners (NYSE:USDP)
Historical Stock Chart
From Apr 2023 to Apr 2024