USD Partners LP (NYSE:USDP) (the “Partnership”) announced today an expansion of the downstream connectivity at its Stroud terminal. The expansion is being pursued by an affiliate of US Development Group, LLC pursuant to its development rights at the terminal, and when completed will add a pipeline connection to a second 300,000 barrel storage tank at a third party facility at the Cushing, Oklahoma, crude oil hub (the “Cushing Hub”). The expanded connectivity is expected to facilitate incremental rail-to-pipeline shipments of crude oil to the Cushing Hub by giving the terminal better capability to service multiple customers and/or multiple grades of crude oil simultaneously. The expansion is expected to be completed in the first quarter of 2022.

“We are excited about the enhanced connectivity at the Stroud terminal that this additional connection into the Cushing Hub creates,” said Jim Albertson, Senior Vice President, Commercial Development – Canada. “This expansion facilitates greater market access and enhances the Stroud terminal’s ability to increase its customer base and fee generating commitments.”

The Stroud terminal is located on 76-acres with the ability to unload one unit train per day and includes two 70,000 barrel onsite operational storage tanks and one truck bay. Additionally, the terminal is connected to the Cushing Hub by a 12-inch diameter, 17-mile pipeline today.

“As the only unit train facility connected by pipeline to the Cushing Hub, this additional connectivity enhances the strategic value and competitive advantages of our Stroud destination terminal as a rail-to-pipeline solution for our customers,” said Brad Sanders, Executive Vice President and Chief Commercial Officer for USD.

About USD Partners LP

USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC (“USD”) 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, refiners and marketers. 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.

USD, which owns the general partner of USD Partners LP, is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD 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, along with its partner Gibson Energy, Inc., is pursuing long-term solutions to transport heavier grades of crude oil produced in Western Canada through the construction of a Diluent Recovery Unit at the Hardisty terminal. USDG is also 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 texasdeepwater.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 the timing of the completion of the Stroud terminal expansion project and whether and to what extent that the expansion project will increase the customer base, contracted cash flows, strategic value or competitive advantages of the Stroud terminal. Words and phrases such as “plans,” “expects,” “will,” “would,” “believes,” 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 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 downturn 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 reductions 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

Adam Altsuler, 281-291-3995 Executive Vice President, Chief Financial Officer aaltsuler@usdg.com

Jennifer Waller, 832-991-8383 Director, Financial Reporting & Investor Relations jwaller@usdg.com

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