00016106822021--12-31Q3FALSE311103111031110P4Y00016106822021-01-012021-09-30xbrli:shares0001610682usdp:CommonUnitsMember2021-11-010001610682us-gaap:GeneralPartnerMember2021-11-01iso4217:USD0001610682usdp:TerminallingServicesMember2021-07-012021-09-300001610682usdp:TerminallingServicesMember2020-07-012020-09-300001610682usdp:TerminallingServicesMember2021-01-012021-09-300001610682usdp:TerminallingServicesMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetLeasesMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetLeasesMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetLeasesMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetLeasesMember2020-01-012020-09-300001610682usdp:FleetServicesMember2021-07-012021-09-300001610682usdp:FleetServicesMember2020-07-012020-09-300001610682usdp:FleetServicesMember2021-01-012021-09-300001610682usdp:FleetServicesMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMember2020-01-012020-09-3000016106822021-07-012021-09-3000016106822020-07-012020-09-3000016106822020-01-012020-09-300001610682usdp:SubcontractedRailServicesMember2021-07-012021-09-300001610682usdp:SubcontractedRailServicesMember2020-07-012020-09-300001610682usdp:SubcontractedRailServicesMember2021-01-012021-09-300001610682usdp:SubcontractedRailServicesMember2020-01-012020-09-300001610682usdp:PipelineFeesMember2021-07-012021-09-300001610682usdp:PipelineFeesMember2020-07-012020-09-300001610682usdp:PipelineFeesMember2021-01-012021-09-300001610682usdp:PipelineFeesMember2020-01-012020-09-30iso4217:USDxbrli:shares0001610682usdp:CommonUnitsMember2021-07-012021-09-300001610682usdp:CommonUnitsMember2020-07-012020-09-300001610682usdp:CommonUnitsMember2021-01-012021-09-300001610682usdp:CommonUnitsMember2020-01-012020-09-300001610682usdp:SubordinatedUnitsMember2021-07-012021-09-300001610682usdp:SubordinatedUnitsMember2020-07-012020-09-300001610682usdp:SubordinatedUnitsMember2021-01-012021-09-300001610682usdp:SubordinatedUnitsMember2020-01-012020-09-3000016106822020-12-3100016106822019-12-3100016106822021-09-3000016106822020-09-300001610682usdp:CommonUnitsMember2021-09-300001610682usdp:CommonUnitsMember2020-12-310001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2021-06-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2020-06-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2021-07-012021-09-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2020-07-012020-09-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2021-09-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2020-09-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2021-06-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2020-06-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2021-07-012021-09-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2020-07-012020-09-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2021-09-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2020-09-300001610682us-gaap:GeneralPartnerMember2021-06-300001610682us-gaap:GeneralPartnerMember2020-06-300001610682us-gaap:GeneralPartnerMember2021-07-012021-09-300001610682us-gaap:GeneralPartnerMember2020-07-012020-09-300001610682us-gaap:GeneralPartnerMember2021-09-300001610682us-gaap:GeneralPartnerMember2020-09-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2020-12-310001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2019-12-310001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2021-01-012021-09-300001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMember2020-01-012020-09-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2020-12-310001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2019-12-310001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2021-01-012021-09-300001610682us-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2020-01-012020-09-300001610682us-gaap:GeneralPartnerMember2020-12-310001610682us-gaap:GeneralPartnerMember2019-12-310001610682us-gaap:GeneralPartnerMember2021-01-012021-09-300001610682us-gaap:GeneralPartnerMember2020-01-012020-09-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001610682us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001610682srt:MaximumMemberusdp:QuarterlyMember2021-01-012021-09-30xbrli:pure0001610682usdp:QuarterlyMember2021-01-012021-09-300001610682usdp:TargetOneMembersrt:MinimumMember2021-01-012021-09-300001610682usdp:TargetOneMembersrt:MaximumMember2021-01-012021-09-300001610682usdp:TargetOneMember2021-01-012021-09-300001610682usdp:TargetTwoMembersrt:MinimumMember2021-01-012021-09-300001610682srt:MaximumMemberusdp:TargetTwoMember2021-01-012021-09-300001610682usdp:TargetTwoMember2021-01-012021-09-300001610682usdp:TargetThreeMembersrt:MinimumMember2021-01-012021-09-300001610682usdp:TargetThreeMembersrt:MaximumMember2021-01-012021-09-300001610682usdp:TargetThreeMember2021-01-012021-09-300001610682usdp:TargetThereafterMembersrt:MinimumMember2021-01-012021-09-300001610682usdp:TargetThereafterMember2021-01-012021-09-300001610682usdp:USDPartnersGPLLCMemberusdp:USDPARTNERSLPMemberus-gaap:GeneralPartnerMember2021-01-012021-09-300001610682usdp:USDPartnersGPLLCMemberusdp:USDPARTNERSLPMemberus-gaap:GeneralPartnerMember2021-01-012021-09-300001610682usdp:IncentiveDistributionRightsMemberus-gaap:GeneralPartnerMember2021-07-012021-09-300001610682us-gaap:PhantomShareUnitsPSUsMember2021-09-300001610682us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2020-02-012020-02-290001610682us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2021-09-300001610682usdp:IncentiveDistributionRightsMemberus-gaap:GeneralPartnerMember2020-07-012020-09-300001610682us-gaap:PhantomShareUnitsPSUsMember2020-09-300001610682usdp:IncentiveDistributionRightsMemberus-gaap:GeneralPartnerMember2021-01-012021-09-3000016106822021-01-012021-03-3100016106822021-04-012021-06-300001610682us-gaap:PhantomShareUnitsPSUsMember2021-01-012021-09-300001610682usdp:IncentiveDistributionRightsMemberus-gaap:GeneralPartnerMember2020-01-012020-09-3000016106822020-04-012020-06-3000016106822020-01-012020-03-310001610682us-gaap:PhantomShareUnitsPSUsMember2020-01-012020-09-30usdp:segment0001610682country:USusdp:ThirdPartyCustomerMember2021-07-012021-09-300001610682country:CAusdp:ThirdPartyCustomerMember2021-07-012021-09-300001610682usdp:ThirdPartyCustomerMember2021-07-012021-09-300001610682srt:AffiliatedEntityMembercountry:US2021-07-012021-09-300001610682country:CAsrt:AffiliatedEntityMember2021-07-012021-09-300001610682srt:AffiliatedEntityMember2021-07-012021-09-300001610682country:USusdp:ThirdPartyCustomerMember2020-07-012020-09-300001610682country:CAusdp:ThirdPartyCustomerMember2020-07-012020-09-300001610682usdp:ThirdPartyCustomerMember2020-07-012020-09-300001610682srt:AffiliatedEntityMembercountry:US2020-07-012020-09-300001610682country:CAsrt:AffiliatedEntityMember2020-07-012020-09-300001610682srt:AffiliatedEntityMember2020-07-012020-09-300001610682country:USusdp:ThirdPartyCustomerMember2021-01-012021-09-300001610682country:CAusdp:ThirdPartyCustomerMember2021-01-012021-09-300001610682usdp:ThirdPartyCustomerMember2021-01-012021-09-300001610682srt:AffiliatedEntityMembercountry:US2021-01-012021-09-300001610682country:CAsrt:AffiliatedEntityMember2021-01-012021-09-300001610682srt:AffiliatedEntityMember2021-01-012021-09-300001610682country:USusdp:ThirdPartyCustomerMember2020-01-012020-09-300001610682country:CAusdp:ThirdPartyCustomerMember2020-01-012020-09-300001610682usdp:ThirdPartyCustomerMember2020-01-012020-09-300001610682srt:AffiliatedEntityMembercountry:US2020-01-012020-09-300001610682country:CAsrt:AffiliatedEntityMember2020-01-012020-09-300001610682srt:AffiliatedEntityMember2020-01-012020-09-300001610682usdp:TerminallingServicesMember2021-10-012021-09-3000016106822022-01-01usdp:TerminallingServicesMember2021-09-300001610682usdp:TerminallingServicesMember2023-01-012021-09-3000016106822024-01-01usdp:TerminallingServicesMember2021-09-3000016106822025-01-01usdp:TerminallingServicesMember2021-09-300001610682usdp:TerminallingServicesMember2021-09-300001610682usdp:FleetServicesMember2021-10-012021-09-3000016106822022-01-01usdp:FleetServicesMember2021-09-300001610682usdp:FleetServicesMember2023-01-012021-09-3000016106822024-01-01usdp:FleetServicesMember2021-09-3000016106822025-01-01usdp:FleetServicesMember2021-09-300001610682usdp:FleetServicesMember2021-09-3000016106822021-10-012021-09-3000016106822022-01-012021-09-3000016106822023-01-012021-09-3000016106822024-01-012021-09-3000016106822025-01-012021-09-300001610682usdp:EstimatedBreakageAssociatedwiththeMakeuprightoptionsMember2021-09-300001610682usdp:EstimatedBreakageAssociatedwiththeMakeuprightoptionsMember2020-12-310001610682us-gaap:OtherCurrentLiabilitiesMember2020-12-310001610682us-gaap:OtherCurrentLiabilitiesMember2021-01-012021-09-300001610682us-gaap:OtherCurrentLiabilitiesMember2021-09-300001610682us-gaap:OtherNoncurrentLiabilitiesMember2020-12-310001610682us-gaap:OtherNoncurrentLiabilitiesMember2021-01-012021-09-300001610682us-gaap:OtherNoncurrentLiabilitiesMember2021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetLeasesMember2020-12-310001610682srt:AffiliatedEntityMemberusdp:FleetLeasesMember2021-09-300001610682us-gaap:LandMember2021-09-300001610682us-gaap:LandMember2020-12-310001610682us-gaap:ManufacturingFacilityMember2021-09-300001610682us-gaap:ManufacturingFacilityMember2020-12-310001610682us-gaap:ManufacturingFacilityMembersrt:MinimumMember2021-01-012021-09-300001610682us-gaap:ManufacturingFacilityMembersrt:MaximumMember2021-01-012021-09-300001610682us-gaap:PipelinesMember2021-09-300001610682us-gaap:PipelinesMember2020-12-310001610682srt:MinimumMemberus-gaap:PipelinesMember2021-01-012021-09-300001610682srt:MaximumMemberus-gaap:PipelinesMember2021-01-012021-09-300001610682us-gaap:EquipmentMember2021-09-300001610682us-gaap:EquipmentMember2020-12-310001610682us-gaap:EquipmentMembersrt:MinimumMember2021-01-012021-09-300001610682srt:MaximumMemberus-gaap:EquipmentMember2021-01-012021-09-300001610682us-gaap:FurnitureAndFixturesMember2021-09-300001610682us-gaap:FurnitureAndFixturesMember2020-12-310001610682us-gaap:FurnitureAndFixturesMembersrt:MinimumMember2021-01-012021-09-300001610682us-gaap:FurnitureAndFixturesMembersrt:MaximumMember2021-01-012021-09-300001610682usdp:TerminallingServicesMemberusdp:CrudeOilStorageTanksMember2021-07-012021-09-300001610682usdp:TerminallingServicesMemberusdp:CrudeOilStorageTanksMember2020-07-012020-09-300001610682usdp:TerminallingServicesMemberusdp:CrudeOilStorageTanksMember2021-01-012021-09-300001610682usdp:TerminallingServicesMemberusdp:CrudeOilStorageTanksMember2020-01-012020-09-300001610682us-gaap:CustomerRelatedIntangibleAssetsMember2021-09-300001610682us-gaap:CustomerRelatedIntangibleAssetsMember2020-12-310001610682us-gaap:OtherIntangibleAssetsMember2021-09-300001610682us-gaap:OtherIntangibleAssetsMember2020-12-310001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-09-300001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMember2021-01-012021-09-30usdp:maturity_date_extension0001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberus-gaap:StandbyLettersOfCreditMember2021-09-300001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberusdp:SwinglineSubfacilityMember2021-09-300001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-12-310001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMember2021-09-300001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMember2020-12-310001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-09-300001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-12-310001610682usdp:FacilitiesAgreementWithGibsonMember2021-09-300001610682usdp:FacilitiesAgreementWithGibsonMember2020-12-310001610682us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberusdp:AccountsReceivableRelatedPartyMember2020-12-310001610682us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberusdp:DeferredRevenueRelatedPartyMember2020-12-310001610682us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-12-310001610682us-gaap:LimitedPartnerMemberusdp:CommonUnitsMemberusdp:USDGMember2021-09-300001610682usdp:USDPARTNERSLPMemberus-gaap:LimitedPartnerMemberusdp:USDGMember2021-01-012021-09-300001610682usdp:USDPartnersGPLLCMemberus-gaap:GeneralPartnerMember2021-09-30usdp:railcarusdp:barrel0001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2021-06-012021-06-300001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2021-07-012021-09-300001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2020-07-012020-09-300001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2021-01-012021-09-300001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2020-01-012020-09-300001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2020-12-310001610682usdp:USDGMemberus-gaap:LimitedPartnerMemberusdp:OmnibusAgreementMember2021-09-300001610682srt:SubsidiariesMemberusdp:MarketingServicesAgreementMemberusdp:USDCFMember2021-06-012021-06-300001610682usdp:USDTerminalCanadaIIMembersrt:AffiliatedEntityMemberusdp:HardistyTerminalServicesAgreementMember2021-07-012021-09-300001610682usdp:USDTerminalCanadaIIMembersrt:AffiliatedEntityMemberusdp:HardistyTerminalServicesAgreementMember2020-07-012020-09-300001610682usdp:USDTerminalCanadaIIMembersrt:AffiliatedEntityMemberusdp:HardistyTerminalServicesAgreementMember2021-01-012021-09-300001610682usdp:USDTerminalCanadaIIMembersrt:AffiliatedEntityMemberusdp:HardistyTerminalServicesAgreementMember2020-01-012020-09-300001610682usdp:USDTerminalCanadaIIMembersrt:AffiliatedEntityMemberusdp:HardistyTerminalServicesAgreementMember2021-09-300001610682usdp:USDTerminalCanadaIIMembersrt:AffiliatedEntityMemberusdp:HardistyTerminalServicesAgreementMember2020-12-3100016106822020-01-012020-06-300001610682usdp:USDMMembersrt:SubsidiariesMemberusdp:MarketingServicesAgreementMember2019-01-012019-01-310001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesMember2021-07-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesMember2020-07-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesMember2021-01-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesMember2020-01-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FleetLeasesMember2021-07-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FleetLeasesMember2020-07-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FleetLeasesMember2021-01-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FleetLeasesMember2020-01-012020-09-300001610682usdp:FleetServicesMemberusdp:USDMarketingMembersrt:AffiliatedEntityMember2021-07-012021-09-300001610682usdp:FleetServicesMemberusdp:USDMarketingMembersrt:AffiliatedEntityMember2020-07-012020-09-300001610682usdp:FleetServicesMemberusdp:USDMarketingMembersrt:AffiliatedEntityMember2021-01-012021-09-300001610682usdp:FleetServicesMemberusdp:USDMarketingMembersrt:AffiliatedEntityMember2020-01-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FreightAndOtherReimbursablesMember2021-07-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FreightAndOtherReimbursablesMember2020-07-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FreightAndOtherReimbursablesMember2021-01-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMemberusdp:FreightAndOtherReimbursablesMember2020-01-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMember2021-07-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMember2020-07-012020-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMember2021-01-012021-09-300001610682usdp:USDMarketingMembersrt:AffiliatedEntityMember2020-01-012020-09-300001610682usdp:USDMarketingMemberusdp:TerminallingandFleetsServicesAgreementsMemberusdp:LeaseRevenuesMember2021-09-300001610682usdp:USDMarketingMemberusdp:TerminallingandFleetsServicesAgreementsMemberusdp:LeaseRevenuesMember2020-12-310001610682usdp:TerminallingandFleetsServicesAgreementsMemberusdp:LeaseRevenuesMember2021-09-300001610682usdp:TerminallingandFleetsServicesAgreementsMemberusdp:LeaseRevenuesMember2020-12-310001610682usdp:TerminallingandFleetsServicesAgreementsMember2021-09-300001610682usdp:TerminallingandFleetsServicesAgreementsMember2020-12-310001610682usdp:TerminallingandFleetsServicesAgreementsMemberusdp:CustomerPrepaymentsMember2021-09-300001610682usdp:TerminallingandFleetsServicesAgreementsMemberusdp:CustomerPrepaymentsMember2020-12-310001610682usdp:USDGMember2021-02-192021-02-190001610682usdp:USDGroupLLCMember2021-02-192021-02-190001610682usdp:USDGMember2021-05-142021-05-140001610682usdp:USDGroupLLCMember2021-05-142021-05-140001610682usdp:USDGMember2021-08-132021-08-130001610682usdp:USDGroupLLCMember2021-08-132021-08-130001610682usdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-07-012021-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-07-012021-09-300001610682usdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-07-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682us-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:SubcontractedRailServicesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:SubcontractedRailServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:SubcontractedRailServicesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:PipelineFeesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:PipelineFeesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001610682usdp:PipelineFeesMemberus-gaap:CorporateNonSegmentMember2021-07-012021-09-300001610682usdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-07-012020-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-07-012020-09-300001610682usdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-07-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682us-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:SubcontractedRailServicesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:SubcontractedRailServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:SubcontractedRailServicesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:PipelineFeesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:PipelineFeesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-07-012020-09-300001610682usdp:PipelineFeesMemberus-gaap:CorporateNonSegmentMember2020-07-012020-09-300001610682usdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-01-012021-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-01-012021-09-300001610682usdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2021-01-012021-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682us-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:SubcontractedRailServicesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:SubcontractedRailServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:SubcontractedRailServicesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:PipelineFeesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:PipelineFeesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001610682usdp:PipelineFeesMemberus-gaap:CorporateNonSegmentMember2021-01-012021-09-300001610682usdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberusdp:TerminallingServicesMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-01-012020-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-01-012020-09-300001610682usdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMemberusdp:FleetServicesMember2020-01-012020-09-300001610682srt:AffiliatedEntityMemberusdp:FleetServicesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:FreightAndOtherReimbursablesMembersrt:AffiliatedEntityMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682us-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:SubcontractedRailServicesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:SubcontractedRailServicesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:SubcontractedRailServicesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:PipelineFeesMemberusdp:TerminallingServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:PipelineFeesMemberusdp:FleetServicesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-09-300001610682usdp:PipelineFeesMemberus-gaap:CorporateNonSegmentMember2020-01-012020-09-300001610682usdp:InterestRateCollarMember2017-11-012017-11-300001610682usdp:InterestRateCollarMember2017-11-300001610682us-gaap:InterestRateSwapMember2020-09-012020-09-300001610682us-gaap:InterestRateSwapMember2020-09-300001610682us-gaap:OtherNoncurrentAssetsMember2021-09-300001610682us-gaap:OtherNoncurrentAssetsMember2020-12-310001610682us-gaap:InterestRateSwapMember2021-09-300001610682us-gaap:InterestRateSwapMember2020-12-310001610682us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:LimitedPartnerMemberusdp:SubordinatedUnitsMember2021-01-012021-09-30usdp:quarter0001610682us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:LimitedPartnerMemberus-gaap:PhantomShareUnitsPSUsMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:LimitedPartnerMemberusdp:LongTermIncentivePlanMemberusdp:CommonUnitsMember2021-01-012021-09-300001610682us-gaap:PhantomShareUnitsPSUsMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682us-gaap:PhantomShareUnitsPSUsMemberusdp:LongTermIncentivePlanMember2020-01-012020-12-310001610682us-gaap:PhantomShareUnitsPSUsMemberusdp:LongTermIncentivePlanMember2021-09-300001610682us-gaap:PhantomShareUnitsPSUsMembersrt:DirectorMember2021-01-012021-09-300001610682usdp:DirectororIndependentConsultantMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-12-310001610682usdp:EmployeeMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-12-310001610682usdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-12-310001610682usdp:DirectororIndependentConsultantMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682usdp:EmployeeMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682usdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682usdp:DirectororIndependentConsultantMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2021-09-300001610682usdp:EmployeeMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2021-09-300001610682usdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2021-09-300001610682usdp:DirectororIndependentConsultantMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2019-12-310001610682usdp:EmployeeMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2019-12-310001610682usdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2019-12-310001610682usdp:DirectororIndependentConsultantMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-01-012020-09-300001610682usdp:EmployeeMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-01-012020-09-300001610682usdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-01-012020-09-300001610682usdp:DirectororIndependentConsultantMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-09-300001610682usdp:EmployeeMemberusdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-09-300001610682usdp:PhantomShareUnitsPSUEquityClassifiedMemberusdp:LongTermIncentivePlanMember2020-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:DirectororIndependentConsultantMemberusdp:LongTermIncentivePlanMember2020-12-310001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:EmployeeMemberusdp:LongTermIncentivePlanMember2020-12-310001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:LongTermIncentivePlanMember2020-12-310001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:DirectororIndependentConsultantMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:EmployeeMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:LongTermIncentivePlanMember2021-01-012021-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:DirectororIndependentConsultantMemberusdp:LongTermIncentivePlanMember2021-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:EmployeeMemberusdp:LongTermIncentivePlanMember2021-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:LongTermIncentivePlanMember2021-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:DirectororIndependentConsultantMemberusdp:LongTermIncentivePlanMember2019-12-310001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:EmployeeMemberusdp:LongTermIncentivePlanMember2019-12-310001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:LongTermIncentivePlanMember2019-12-310001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:DirectororIndependentConsultantMemberusdp:LongTermIncentivePlanMember2020-01-012020-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:EmployeeMemberusdp:LongTermIncentivePlanMember2020-01-012020-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:LongTermIncentivePlanMember2020-01-012020-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:DirectororIndependentConsultantMemberusdp:LongTermIncentivePlanMember2020-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:EmployeeMemberusdp:LongTermIncentivePlanMember2020-09-300001610682usdp:PhantomShareUnitsPSULiabilityClassifiedMemberusdp:LongTermIncentivePlanMember2020-09-300001610682us-gaap:PhantomShareUnitsPSUsMember2021-07-012021-09-300001610682us-gaap:PhantomShareUnitsPSUsMember2020-07-012020-09-300001610682usdp:DistributionEquivalentRightMember2021-07-012021-09-300001610682usdp:DistributionEquivalentRightMember2020-07-012020-09-300001610682usdp:DistributionEquivalentRightMember2021-01-012021-09-300001610682usdp:DistributionEquivalentRightMember2020-01-012020-09-300001610682usdp:NewOrExtendedLeaseAgreementsMember2021-09-300001610682usdp:NewOrExtendedLeaseAgreementsMember2020-09-300001610682us-gaap:SubsequentEventMember2021-10-212021-10-210001610682usdp:CommonUnitsMemberus-gaap:SubsequentEventMember2021-10-212021-10-210001610682usdp:CommonUnitsMemberus-gaap:SubsequentEventMember2021-11-032021-11-030001610682usdp:USDGMemberusdp:CommonUnitsandSubordinatedUnitsMemberus-gaap:SubsequentEventMember2021-11-032021-11-030001610682usdp:USDPartnersGPLLCMemberus-gaap:SubsequentEventMember2021-11-032021-11-030001610682us-gaap:SecuredDebtMemberusdp:CreditFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:SubsequentEventMember2021-10-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
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 001-36674 
USD PARTNERS LP
(Exact Name of Registrant as Specified in Its Charter)
Delaware   30-0831007
(State or Other Jurisdiction of Incorporation
or Organization)
  (I.R.S. Employer
Identification No.)
811 Main Street, Suite 2800
Houston, Texas 77002
(Address of Principal Executive Offices) (Zip Code)
(Registrant’s Telephone Number, Including Area Code): (281) 291-0510
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common Units Representing Limited Partner Interests USDP New York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No  ☒
As of November 1, 2021, there were 27,225,104 common units and 461,136 general partner units outstanding.




Unless the context otherwise requires, all references in this Quarterly Report on Form 10-Q, or this “Report,” to “USD Partners,” “USDP,” “the Partnership,” “we,” “us,” “our,” or like terms refer to USD Partners LP and its subsidiaries.
Unless the context otherwise requires, all references in this Report to (i) “our general partner” refer to USD Partners GP LLC, a Delaware limited liability company; (ii) “USD” refers to US Development Group, LLC, a Delaware limited liability company, and where the context requires, its subsidiaries; (iii) “USDG” and “our sponsor” refer to USD Group LLC, a Delaware limited liability company and currently the sole direct subsidiary of USD; (iv) “Energy Capital Partners” refers to Energy Capital Partners III, LP and its parallel and co-investment funds and related investment vehicles; and (v) “Goldman Sachs” refers to The Goldman Sachs Group, Inc. and its affiliates.
Cautionary Note Regarding Forward-Looking Statements
This Report includes forward-looking statements, which are statements that frequently use words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “position,” “projection,” “should,” “strategy,” “target,” “will” and similar words. Although we believe that such forward-looking statements are reasonable based on currently available information, such statements involve risks, uncertainties and assumptions and are not guarantees of performance. Future actions, conditions or events and future results of operations may differ materially from those expressed in these forward-looking statements. Any forward-looking statement made by us in this Report speaks only as of the date on which it is made, and we undertake no obligation to publicly update any forward-looking statement. Many of the factors that will determine these results are beyond our ability to control or predict. Specific factors that could cause actual results to differ from those in the forward-looking statements include: (1) the impact of the novel coronavirus (COVID-19) pandemic and related economic downturn and governmental regulations; (2) changes in general economic conditions and commodity prices; (3) the effects of competition, in particular, by pipelines and other terminalling facilities; (4) shut-downs or cutbacks at upstream production facilities, refineries or other related businesses; (5) government regulations regarding oil production, including if the Alberta Government were to resume setting production limits; (6) the supply of, and demand for, terminalling services for crude oil and biofuels; (7) the price and availability of debt and equity financing; (8) actions by third parties, including customers, lenders, construction-related services providers, and our sponsors; (9) hazards and operating risks that may not be covered fully by insurance; (10) disruptions due to equipment interruption or failure at our facilities or third-party facilities on which our business is dependent; (11) natural disasters, weather-related delays, casualty losses and other matters beyond our control; (12) changes in laws or regulations to which we are subject, including compliance with environmental and operational safety regulations, that may increase our costs or limit our operations; and (13) our ability to successfully identify and finance potential acquisitions, development projects and other growth opportunities. For additional factors that may affect our results, see “Risk Factors” and the other information included elsewhere in this Report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which is available to the public over the Internet at the website of the U.S. Securities and Exchange Commission, or SEC, (www.sec.gov) and at our website (www.usdpartners.com).


i


                PART I—FINANCIAL INFORMATION 
Item 1.     Financial Statements
USD PARTNERS LP
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(unaudited; in thousands of US dollars, except per unit amounts)
Revenues
Terminalling services $ 28,070  $ 28,905  $ 87,167  $ 75,449 
Terminalling services — related party 313  1,041  2,527  8,929 
Fleet leases — related party 984  984  2,951  2,951 
Fleet services —  51  24  152 
Fleet services — related party 227  227  682  682 
Freight and other reimbursables 170  64  533  750 
Freight and other reimbursables — related party —  65  —  66 
Total revenues 29,764  31,337  93,884  88,979 
Operating costs
Subcontracted rail services 3,693  2,300  10,357  8,433 
Pipeline fees 6,031  5,936  18,475  17,678 
Freight and other reimbursables 170  129  533  816 
Operating and maintenance 2,538  2,299  7,972  7,944 
Operating and maintenance — related party 1,959  2,102  6,150  6,194 
Selling, general and administrative 2,596  2,510  8,063  8,310 
Selling, general and administrative — related party 1,649  1,735  4,951  5,563 
Goodwill impairment loss —  —  —  33,589 
Depreciation and amortization 5,604  5,430  16,575  16,055 
Total operating costs 24,240  22,441  73,076  104,582 
Operating income (loss) 5,524  8,896  20,808  (15,603)
Interest expense 1,480  2,045  4,806  7,040 
Loss (gain) associated with derivative instruments (110) 1,200  (2,468) 4,405 
Foreign currency transaction loss (gain) 294  (246) 192  812 
Other expense (income), net (33) (13) (876)
Income (loss) before income taxes
3,857  5,930  18,291  (26,984)
Provision for (benefit from) income taxes 49  (307) 439  (626)
Net income (loss) $ 3,808  $ 6,237  $ 17,852  $ (26,358)
Net income (loss) attributable to limited partner interests $ 3,744  $ 6,131  $ 17,553  $ (25,913)
Net income (loss) per common unit (basic and diluted) $ 0.13  $ 0.23  $ 0.65  $ (0.98)
Weighted average common units outstanding 27,225  26,844  27,161  26,403 
Net income (loss) per subordinated unit (basic and diluted) $ —  $ —  $ —  $ (0.04)
Weighted average subordinated units outstanding —  —  —  382 

The accompanying notes are an integral part of these consolidated financial statements.
1



USD PARTNERS LP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(unaudited; in thousands of US dollars)
Net income (loss)
$ 3,808  $ 6,237  $ 17,852  $ (26,358)
Other comprehensive income (loss) — foreign currency translation (924) 689  31  (916)
Comprehensive income (loss)
$ 2,884  $ 6,926  $ 17,883  $ (27,274)

The accompanying notes are an integral part of these consolidated financial statements.
2



USD PARTNERS LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30,
2021 2020
(unaudited; in thousands of US dollars)
Cash flows from operating activities:
Net income (loss) $ 17,852  $ (26,358)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 16,575  16,055 
Loss (gain) associated with derivative instruments (2,468) 4,405 
Settlement of derivative contracts (829) (631)
Unit based compensation expense 4,274  4,909 
Loss associated with disposal of assets 11  — 
Deferred income taxes (225) (1,263)
Amortization of deferred financing costs 622  622 
Goodwill impairment loss —  33,589 
Changes in operating assets and liabilities:
Accounts receivable 12  892 
Accounts receivable — related party (182) (758)
Prepaid expenses and other assets 1,467  (1,303)
Other assets — related party (837) (899)
Accounts payable and accrued expenses 684  (609)
Accounts payable and accrued expenses — related party (84) (78)
Deferred revenue and other liabilities 768  6,218 
Deferred revenue and other liabilities — related party 44  (1,031)
Net cash provided by operating activities 37,684  33,760 
Cash flows from investing activities:
Additions of property and equipment (2,345) (395)
Net cash used in investing activities (2,345) (395)
Cash flows from financing activities:
Distributions (9,861) (17,020)
Vested phantom units used for payment of participant taxes (859) (1,789)
Proceeds from long-term debt —  12,000 
Repayments of long-term debt (23,000) (23,000)
Net cash used in financing activities (33,720) (29,809)
Effect of exchange rates on cash (135) 293 
Net change in cash, cash equivalents and restricted cash 1,484  3,849 
Cash, cash equivalents and restricted cash beginning of period
10,994  10,684 
Cash, cash equivalents and restricted cash end of period
$ 12,478  $ 14,533 

The accompanying notes are an integral part of these consolidated financial statements.
3



USD PARTNERS LP
CONSOLIDATED BALANCE SHEETS
September 30, 2021 December 31, 2020
(unaudited; in thousands of US dollars, except unit amounts)
ASSETS
Current assets
Cash and cash equivalents $ 4,392  $ 3,040 
Restricted cash 8,086  7,954 
Accounts receivable, net 4,043  4,049 
Accounts receivable — related party 2,658  2,460 
Prepaid expenses 2,609  1,959 
Other current assets 129  1,777 
Other current assets — related party 259  15 
Total current assets 22,176  21,254 
Property and equipment, net 135,243  139,841 
Intangible assets, net 52,037  61,492 
Operating lease right-of-use assets 7,047  9,630 
Other non-current assets 3,876  3,625 
Other non-current assets — related party 2,290  1,706 
Total assets $ 222,669  $ 237,548 
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities
Accounts payable and accrued expenses $ 2,566  $ 1,865 
Accounts payable and accrued expenses — related party 299  383 
Deferred revenue 5,569  6,367 
Deferred revenue — related party 410  410 
Operating lease liabilities, current 5,180  5,291 
Other current liabilities 6,963  4,222 
Other current liabilities — related party 28  — 
Total current liabilities 21,015  18,538 
Long-term debt, net 173,102  195,480 
Operating lease liabilities, non-current 1,823  4,392 
Other non-current liabilities 9,303  12,870 
Other non-current liabilities — related party 16   
Total liabilities 205,259  231,280 
Commitments and contingencies
Partners’ capital
Common units (27,225,104 and 26,844,715 outstanding at September 30, 2021 and December 31, 2020, respectively)
14,806  3,829 
General partner units (461,136 outstanding at September 30, 2021 and December 31, 2020)
2,026  1,892 
Accumulated other comprehensive income 578  547 
Total partners’ capital 17,410  6,268 
Total liabilities and partners’ capital $ 222,669  $ 237,548 

The accompanying notes are an integral part of these consolidated financial statements.
4



USD PARTNERS LP
THREE MONTHS CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL
Three Months Ended September 30,
2021 2020
Units Amount Units Amount
(unaudited; in thousands of US dollars, except unit amounts)
Common units
Beginning balance at July 1,
27,224,441  $ 13,100  26,843,674  $ (5,670)
Common units issued for vested phantom units 663  (2) 663  (1)
Net income —  3,744  —  6,131 
Unit based compensation expense —  1,283  —  1,599 
Distributions —  (3,319) —  (3,129)
Ending balance at September 30,
27,225,104  14,806  26,844,337  (1,070)
Subordinated units
Beginning balance at July 1,
—  —  —  — 
Net income —  —  —  — 
Distributions —  —  —  — 
Ending balance at September 30,
—  —  —  — 
General Partner units
Beginning balance at July 1,
461,136  2,018  461,136  1,784 
Net income —  64  —  106 
Distributions —  (56) —  (54)
Ending balance at September 30,
461,136  2,026  461,136  1,836 
Accumulated other comprehensive income (loss)
Beginning balance at July 1,
1,502  (1,732)
Cumulative translation adjustment (924) 689 
Ending balance at September 30,
578  (1,043)
Total partners’ capital at September 30,
$ 17,410  $ (277)
The accompanying notes are an integral part of these consolidated financial statements.
5



USD PARTNERS LP
NINE MONTHS CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL
Nine Months Ended September 30,
2021 2020
Units Amount Units Amount
(unaudited; in thousands of US dollars, except unit amounts)
Common units
Beginning balance at January 1, 26,844,715  $ 3,829  24,411,892  $ 61,013 
Conversion of units —  —  2,092,709  (23,423)
Common units issued for vested phantom units 380,389  (859) 339,736  (1,789)
Net income (loss) —  17,553  —  (25,898)
Unit based compensation expense —  3,979  —  4,749 
Distributions —  (9,696) —  (15,722)
Ending balance at September 30,
27,225,104  14,806  26,844,337  (1,070)
Subordinated units
Beginning balance at January 1, —  —  2,092,709  (22,597)
Conversion of units —  —  (2,092,709) 23,423 
Net income (loss) —  —  —  (15)
Distributions —  —  —  (811)
Ending balance at September 30,
—  —  —  — 
General Partner units
Beginning balance at January 1, 461,136  1,892  461,136  2,767 
Net income (loss) —  299  —  (445)
Unit based compensation expense —  —  — 
Distributions —  (165) —  (487)
Ending balance at September 30,
461,136  2,026  461,136  1,836 
Accumulated other comprehensive income (loss)
Beginning balance at January 1, 547  (127)
Cumulative translation adjustment 31  (916)
Ending balance at September 30,
578  (1,043)
Total partners’ capital at September 30,
$ 17,410  $ (277)

The accompanying notes are an integral part of these consolidated financial statements.
6



USD PARTNERS LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

1. ORGANIZATION AND BASIS OF PRESENTATION
USD Partners LP and its consolidated subsidiaries, collectively referred to herein as we, us, our, the Partnership and USDP, is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC, or USD, through its wholly-owned subsidiary, USD Group LLC, or USDG. We were formed to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. We generate substantially all of our operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies, refiners and marketers. Our network of crude oil terminals facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. Our operations include railcar loading and unloading, storage and blending in onsite tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. We also provide our customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons by rail. We do not generally take ownership of the products that we handle, nor do we receive any payments from our customers based on the value of such products. We may on occasion enter into buy-sell arrangements in which we take temporary title to commodities while in our terminals. We expect such arrangements to be at fixed prices where we do not take commodity price exposure.
A substantial amount of the operating cash flows related to the terminalling services that we provide are generated from take-or-pay contracts with minimum monthly commitment fees and, as a result, are not directly related to actual throughput volumes at our crude oil terminals. Throughput volumes at our terminals are primarily influenced by the difference in price between Western Canadian Select, or WCS, and other grades of crude oil, commonly referred to as spreads, rather than absolute price levels. WCS spreads are influenced by several market factors, including the availability of supplies relative to the level of demand from refiners and other end users, the price and availability of alternative grades of crude oil, the availability of takeaway capacity, as well as transportation costs from supply areas to demand centers.
Basis of Presentation
Our accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim consolidated financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of our management, they contain all adjustments, consisting only of normal recurring adjustments, which our management considers necessary to present fairly our financial position as of September 30, 2021, our results of operations for the three and nine months ended September 30, 2021 and 2020, and our cash flows for the nine months ended September 30, 2021 and 2020. We derived our consolidated balance sheet as of December 31, 2020 from the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Our results of operations for the three and nine months ended September 30, 2021 and 2020 should not be taken as indicative of the results to be expected for the full year due to fluctuations in the supply of and demand for crude oil and biofuels, timing and completion of acquisitions, if any, changes in the fair market value of our derivative instruments and the impact of fluctuations in foreign currency exchange rates. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
COVID-19 Update
During 2020, the COVID-19 pandemic adversely affected the global economy, disrupted global supply chains and created significant volatility in the financial markets. As a result, beginning in March 2020, there was significant reductions in demand for crude oil, natural gas and natural gas liquids, which led to a decline in commodity prices. This drove Canadian producers to curtail production, which in turn resulted in lower crude oil supply levels and led

7


to lower throughput volume through our facilities. However, the decline in throughput volumes at our facilities did not have a material impact on our results of operations or cash flows during 2020, as a substantial amount of our terminalling services operating cash flows are generated from take-or-pay contracts with minimum monthly commitment fees with mainly investment grade customers. While production has generally returned to pre-COVID levels, there still remains significant uncertainty given the unprecedented and evolving nature of the COVID-19 pandemic and the state of the commodity markets. As such, we will continue to actively monitor their impact on our operations and financial condition.
Foreign Currency Translation
We conduct a substantial portion of our operations in Canada, which we account for in the local currency, the Canadian dollar. We translate most Canadian dollar denominated balance sheet accounts into our reporting currency, the U.S. dollar, at the end of period exchange rate, while most accounts in our statement of operations accounts are translated into our reporting currency based on the average exchange rate for each monthly period. Fluctuations in the exchange rates between the Canadian dollar and the U.S. dollar can create variability in the amounts we translate and report in U.S. dollars.
Within these consolidated financial statements, we denote amounts denominated in Canadian dollars with “C$” immediately prior to the stated amount.
US Development Group, LLC
USD and its affiliates are engaged in designing, developing, owning and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD is the indirect owner of our general partner through its direct ownership of USDG and is currently owned by Energy Capital Partners, Goldman Sachs and certain of USD’s management team.

2. RECENT ACCOUNTING PRONOUNCEMENTS
Recently Adopted Accounting Pronouncements
Income Taxes (ASU 2019-12)
In December 2019, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2019-12, or ASU 2019-12, which amends the FASB Accounting Standards Codification, or ASC, Topic 740, by removing certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. In addition, under the provisions of ASU 2019-12, single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. The pronouncement is effective for fiscal years beginning after December 15, 2020, or for any interim periods within those fiscal years, with early adoption permitted.
We adopted the provisions of ASU 2019-12 on January 1, 2021. Our adoption of this standard did not have an impact on our financial statements.

3. NET INCOME (LOSS) PER LIMITED PARTNER INTEREST
We allocate our net income or loss among our general partner and limited partners using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, we allocate our net income or loss and any net income or loss in excess of distributions to our limited partners, our general partner and the holder of the incentive distribution rights, or IDRs, according to the distribution formula for available cash as set forth in our partnership agreement. We allocate any distributions in excess of earnings for the period to our limited partners and general partner based on their respective proportionate ownership interests in us, as set forth in our partnership agreement after taking into account distributions to be paid with respect to the IDRs.

8


The formula for distributing available cash as set forth in our partnership agreement is as follows:
Distribution Targets Portion of Quarterly
Distribution Per Unit
Percentage Distributed to Limited Partners
Percentage Distributed to
General Partner
(including IDRs) (1)
Minimum Quarterly Distribution
Up to $0.2875
98% 2%
First Target Distribution
> $0.2875 to $0.330625
98% 2%
Second Target Distribution
> $0.330625 to $0.359375
85% 15%
Third Target Distribution
> $0.359375 to $0.431250
75% 25%
Thereafter
Amounts above $0.431250
50% 50%
    
(1)Calculated as if our general partner holds the original 2% general partner interest in us, which is currently 1.7%.
We determined basic and diluted net income (loss) per limited partner unit as set forth in the following tables:
For the Three Months Ended September 30, 2021
Common
Units
Subordinated
Units (7)
General
Partner
Units
Total
(in thousands, except per unit amounts)
Net income attributable to general and limited partner interests in USD Partners LP (1)
$ 3,744  $ —  $ 64  $ 3,808 
Less: Distributable earnings (2)
3,387  —  58  3,445 
Excess net income $ 357  $ —  $ $ 363 
Weighted average units outstanding (3)
27,225  —  461  27,686 
Distributable earnings per unit (4)
$ 0.12  $ — 
Underdistributed earnings per unit (5)
0.01  — 
Net income per limited partner unit (basic and diluted) (6)
$ 0.13  $ — 
    
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights.
(2)Represents the distributions payable for the period based upon the quarterly distribution amounts of $0.1185 per unit or $0.474 per unit on an annualized basis. Amounts presented for each class of units include a proportionate amount of the $164 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Amended and Restated Long-Term Incentive Plan.
(3)Represents the weighted average units outstanding for the period.
(4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period.
(5)Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement.
(6)Our computation of net income per limited partner unit excludes the effects of 1,409,713 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented.
(7)In February 2020, the final tranche of 2,092,709 subordinated units were converted into common units and therefore there were no subordinated units outstanding during 2021. Refer to Note 16. Partners' Capital for more information.

9


For the Three Months Ended September 30, 2020
Common
Units
Subordinated
Units (7)
General
Partner
Units
Total
(in thousands, except per unit amounts)
Net income attributable to general and limited partner interests in USD Partners LP (1)
$ 6,131  $ —  $ 106  $ 6,237 
Less: Distributable earnings (2)
3,129  —  54  3,183 
Excess net income $ 3,002  $ —  $ 52  $ 3,054 
Weighted average units outstanding (3)
26,844  —  461  27,305 
Distributable earnings per unit (4)
$ 0.12  $ — 
Underdistributed earnings per unit (5)
0.11  — 
Net income per limited partner unit (basic and diluted) (6)
$ 0.23  $ — 
    
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights.
(2)Represents the distributions paid for the period based upon the quarterly distribution amount of $0.111 per unit or $0.444 per unit on an annualized basis. Amounts presented for each class of units include a proportionate amount of the $152 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Amended and Restated Long-Term Incentive Plan.
(3)Represents the weighted average units outstanding for the period.
(4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period.
(5)Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement.
(6)Our computation of net income per limited partner unit excludes the effects of 1,366,355 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented.
(7)In February 2020, the final tranche of 2,092,709 subordinated units were converted into common units. Refer to Note 16. Partners' Capital for more information.
For the Nine Months Ended September 30, 2021
Common
Units
Subordinated
Units (7)
General
Partner
Units
Total
(in thousands, except per unit amounts)
Net income attributable to general and limited partner interests in USD Partners LP (1)
$ 17,553  $ —  $ 299  $ 17,852 
Less: Distributable earnings (2)
9,955  —  168  10,123 
Excess net income $ 7,598  $ —  $ 131  $ 7,729 
Weighted average units outstanding (3)
27,161  —  461  27,622 
Distributable earnings per unit (4)
$ 0.37  $ — 
Underdistributed earnings per unit (5)
0.28  — 
Net income per limited partner unit (basic and diluted) (6)
$ 0.65  $ — 
    
(1)Represents net income allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights.
(2)Represents the per unit distribution paid of $0.1135 per unit for the three months ended March 31, 2021, the per unit distribution paid of $0.116 per unit for the three months ended June 30, 2021, and $0.1185 distributable for the three months ended September 30, 2021, representing a year-to-date distribution of $0.348 per unit. Amounts presented for each class of units include a proportionate amount of the $325 thousand distributed and $164 thousand distributable to holders of the Equity classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Amended and Restated Long-Term Incentive Plan.
(3)Represents the weighted average units outstanding for the period.
(4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period.
(5)Represents the additional amount per unit necessary to distribute the excess net income for the period among our limited partners and our general partners according to the distribution formula for available cash as set forth in our partnership agreement.
(6)Our computation of net income per limited partner unit excludes the effects of $1,409,713 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented.
(7)In February 2020, the final tranche of 2,092,709 subordinated units were converted into common units and therefore there were no subordinated units outstanding during 2021. Refer to Note 16. Partners' Capital for more information.

10


For the Nine Months Ended September 30, 2020
Common
Units
Subordinated
Units (7)
General
Partner
Units
Total
(in thousands, except per unit amounts)
Net loss attributable to general and limited partner interests in USD Partners LP (1)
$ (25,898) $ (15) $ (445) $ (26,358)
Less: Distributable earnings (2)
9,386  —  162  9,548 
Distributions in excess of earnings $ (35,284) $ (15) $ (607) $ (35,906)
Weighted average units outstanding (3)
26,403  382  461  27,246 
Distributable earnings per unit (4)
$ 0.36  $ — 
Overdistributed earnings per unit (5)
(1.34) (0.04)
Net loss per limited partner unit (basic and diluted)(6)
$ (0.98) $ (0.04)
    
(1)Represents net loss allocated to each class of units based on the actual ownership of the Partnership during the period. There were no amounts attributed to the general partner for its incentive distribution rights.
(2)Represents the per unit distribution paid of $0.111 per unit for the three months ended March 31, 2020 and June 30, 2020, and $0.111 per unit distributed for the three months ended September 30, 2020, representing a year-to-date distribution of $0.333 per unit. Amounts presented for each class of units include a proportionate amount of the $456 thousand distributed to holders of the Equity-classified Phantom Units pursuant to the distribution equivalent rights granted under the USD Partners LP 2014 Amended and Restated Long-Term Incentive Plan.
(3)Represents the weighted average units outstanding for the period.
(4)Represents the total distributable earnings divided by the weighted average number of units outstanding for the period.
(5)Represents the distributions in excess of earnings divided by the weighted average number of units outstanding for the period.
(6)Our computation of net loss per limited partner unit excludes the effects of 1,366,355 equity-classified phantom unit awards outstanding as they were anti-dilutive for the period presented.
(7)In February 2020, the final tranche of 2,092,709 subordinated units were converted into common units. Refer to Note 16. Partners' Capital for more information.
4. REVENUES
Disaggregated Revenues
We manage our business in two reportable segments: Terminalling services and Fleet services. Our segments offer different services and are managed accordingly. Our chief operating decision maker, or CODM, regularly reviews financial information about both segments in order to allocate resources and evaluate performance. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 14. Segment Reporting for our disaggregated revenues by segment. Additionally, the below tables summarize the geographic data for our revenues:
Three Months Ended September 30, 2021
U.S. Canada Total
(in thousands)
Third party
$ 7,814  $ 20,426  $ 28,240 
Related party
$ 1,524  $ —  $ 1,524 
Three Months Ended September 30, 2020
U.S. Canada Total
(in thousands)
Third party
$ 8,799  $ 20,221  $ 29,020 
Related party
$ 2,317  $ —  $ 2,317 

11


Nine Months Ended September 30, 2021
U.S. Canada Total
(in thousands)
Third party
$ 25,306  $ 62,418  $ 87,724 
Related party
$ 6,160  $ —  $ 6,160 
Nine Months Ended September 30, 2020
U.S. Canada Total
(in thousands)
Third party
$ 22,501  $ 53,850  $ 76,351 
Related party
$ 6,737  $ 5,891  $ 12,628 
Remaining Performance Obligations
The transaction price allocated to the remaining performance obligations associated with our terminalling and fleet services agreements as of September 30, 2021 are as follows for the periods indicated:
For the three months ending December 31, 2021 2022 2023 2024 Thereafter Total
(in thousands)
Terminalling Services (1) (2)
$ 23,705  $ 75,911  $ 38,026  $ 19,551  $ 128,711  $ 285,904 
Fleet Services 227  1,195  —  —  —  1,422 
Total $ 23,932  $ 77,106  $ 38,026  $ 19,551  $ 128,711  $ 287,326 
    
(1)A significant portion of our terminalling services agreements are denominated in Canadian dollars. We have converted the remaining performance obligations associated with these Canadian dollar-denominated contracts using the year-to-date average exchange rate of 0.7994 U.S. dollars for each Canadian dollar at September 30, 2021.
(2)Includes fixed monthly minimum commitment fees per contracts and excludes constrained estimates of variable consideration for rate-escalations associated with an index, such as the consumer price index, as well as any incremental revenue associated with volume activity above the minimum volumes set forth within the contracts. Also excludes estimated constrained variable consideration included in certain of our terminalling services agreements that is based on crude oil pricing index differentials.
We have applied the practical expedient that allows us to exclude disclosure of performance obligations that are part of a contract that has an expected duration of one year or less.
Contract Assets
Our contract assets represent cumulative revenue that has been recognized in advance of billing the customer due to tiered billing provisions. In such arrangements, revenue is recognized using a blended rate based on the billing tiers of the agreement, as the services are consistently provided throughout the duration of the contractual arrangement.
We had the following amounts outstanding associated with our contract assets on our consolidated balance sheets in the financial statement line items presented below in the following table for the indicated periods:
September 30, 2021 December 31, 2020
(in thousands)
Other current assets $ —  $ 1,622 
Deferred Revenue
Our deferred revenue is a form of a contract liability and consists of amounts collected in advance from customers associated with their terminalling and fleet services agreements and deferred revenues associated with make-up rights, which will be recognized as revenue when earned pursuant to the terms of our contractual arrangements. We currently recognize substantially all of the amounts we receive for minimum volume

12


commitments as revenue when collected, since breakage associated with these make-up rights is currently approximately 100% based on our expectations around usage of these options. Accordingly, we had no deferred revenues at September 30, 2021 for estimated breakage associated with the make-up rights options we granted to our customers. In addition, we had no deferred revenues associated with make-up rights at December 31, 2020.
We also have deferred revenue that represents cumulative revenue that has been deferred due to tiered billing provisions. In such arrangements, revenue is recognized using a blended rate based on the billing tiers of the agreement, as the services are consistently provided throughout the duration of the contractual arrangement, which we included in “Other current liabilities” and “Other non-current liabilities” on our consolidated balance sheets.
The following table presents the amounts outstanding on our consolidated balance sheets and changes associated with the balance of our deferred revenue for the nine months ended September 30, 2021:
December 31, 2020 Cash Additions for Customer Prepayments Balance Sheet Reclassification Revenue Recognized September 30, 2021
(in thousands)
Deferred revenue $ 6,367  $ 5,569  $ —  $ (6,367) $ 5,569 
Other current liabilities $ —  $ —  $ 4,077  $ (496) $ 3,581 
Other non-current liabilities (1)
$ 10,087  $ 3,201  $ (4,077) $ —  $ 9,211 
    
(1)    Includes cumulative revenue that has been deferred due to tiered billing provisions included in certain of our Canadian dollar-denominated contracts, as discussed above. As such, the change in “Other non-current liabilities” presented has been increased by $24 thousand due to the impact of the change in the end of period exchange rate between December 31, 2020 and September 30, 2021.
Deferred Revenue Fleet Leases
Our deferred revenue also includes advance payments from customers of our Fleet services business, which will be recognized as Fleet leases revenue when earned pursuant to the terms of our contractual arrangements. We have included $0.4 million at September 30, 2021 and December 31, 2020, respectively, in “Deferred revenue related party” on our consolidated balance sheets associated with customer prepayments for our fleet lease agreements. Refer to Note 7. Leases for additional discussion of our lease revenues.

5. RESTRICTED CASH
We include in restricted cash amounts representing a cash account for which the use of funds is restricted by a facilities connection agreement among us and Gibson Energy Inc., or Gibson, that we entered into during 2014 in connection with the development of our Hardisty Terminal. The collaborative arrangement is further discussed in Note 10. Collaborative Arrangement.
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within our consolidated balance sheets to the amounts shown in our consolidated statements of cash flows for the specified periods:
September 30,
2021 2020
(in thousands)
Cash and cash equivalents $ 4,392  $ 6,928 
Restricted Cash 8,086  7,605 
Total cash, cash equivalents and restricted cash $ 12,478  $ 14,533 


13


6. PROPERTY AND EQUIPMENT
Our property and equipment is comprised of the following asset classifications as of the dates indicated:
September 30, 2021 December 31, 2020 Estimated
Depreciable Lives
(Years)
(in thousands)
Land $ 10,295  $ 10,288  N/A
Trackage and facilities 127,560  127,401 
10-30
Pipeline 32,735  32,735 
20-30
Equipment 17,607  17,337 
3-20
Furniture 67  67 
5-10
Total property and equipment 188,264  187,828 
Accumulated depreciation (55,701) (48,630)
Construction in progress (1)
2,680  643 
Property and equipment, net $ 135,243  $ 139,841 
    
(1)The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that has not been placed into productive service as of the respective consolidated balance sheet date.
Depreciation expense associated with property and equipment totaled $2.5 million and $2.3 million for the three months ended September 30, 2021 and 2020, respectively, and $7.1 million and $6.6 million for the nine months ended September 30, 2021 and 2020, respectively.
7. LEASES
We have noncancellable operating leases for railcars, buildings, storage tanks, offices, railroad tracks, and land.
Nine Months Ended September 30, 2021
Weighted-average discount rate
5.7  %
Weighted average remaining lease term in years
2.32
Our total lease cost consisted of the following items for the dates indicated:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands)
Operating lease cost
$ 1,514  $ 1,483  $ 4,501  $ 4,461 
Short term lease cost
45 46 137  138 
Variable lease cost
7 1 34  12 
Sublease income
(1,347) (1,341) (4,043) (4,024)
Total
$ 219  $ 189  $ 629  $ 587 

14


The maturity analysis below presents the undiscounted cash payments we expect to make each period for property that we lease from others under noncancellable operating leases as of September 30, 2021 (in thousands):
2021 $ 1,630 
2022 4,859 
2023 147 
2024 115 
2025 113 
Thereafter
622 
Total lease payments
$ 7,486 
Less: imputed interest
(483)
Present value of lease liabilities
$ 7,003 
We serve as an intermediary to assist our customers with obtaining railcars. In connection with our leasing of railcars from third parties, we simultaneously enter into lease agreements with our customers for noncancellable terms that are designed to recover our costs associated with leasing the railcars plus a fee for providing this service. In addition to these leases, we also have lease income from storage tanks.
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands, except weighted average term)
Lease income (1)
$ 2,078  $ 2,545  $ 6,432  $ 7,097 
Weighted average remaining lease term in years
3.60
        
(1)Lease income presented above includes lease income from related parties. Refer to Note 12. Transactions with Related Parties for additional discussion of lease income from a related party. Lease income associated with crude oil storage tanks we lease to customers of our terminals totaling $1.1 million and $1.5 million for the three months ended September 30, 2021 and 2020, and $3.5 million and $4.1 million for the nine months ended September 30, 2021 and 2020, respectively, is included in “Terminalling services” revenues on our consolidated statements of operations.

The maturity analysis below presents the undiscounted future minimum lease payments we expect to receive from customers each period for property they lease from us under noncancellable operating leases as of September 30, 2021 (in thousands): 
2021 $ 2,053 
2022 7,669 
2023 2,656 
2024 2,663 
2025 2,656 
Thereafter
2,430 
Total
$ 20,127 


15


8. INTANGIBLE ASSETS
The composition, gross carrying amount and accumulated amortization of our identifiable intangible assets are as follows as of the dates indicated:
September 30, 2021 December 31, 2020
(in thousands)
Carrying amount:
Customer service agreements $ 125,960  $ 125,960 
Other 106  106 
Total carrying amount 126,066  126,066 
Accumulated amortization:
Customer service agreements (73,967) (64,520)
Other (62) (54)
Total accumulated amortization (74,029) (64,574)
Total intangible assets, net $ 52,037  $ 61,492 
Amortization expense associated with intangible assets totaled $3.2 million for the three months ended September 30, 2021 and 2020, and $9.5 million for the nine months ended September 30, 2021 and 2020.
9. DEBT
In November 2018, we amended and restated our senior secured credit agreement, which we originally established in October 2014. We refer to the amended and restated senior secured credit agreement executed in November 2018 as the Credit Agreement and the original senior secured credit agreement as the Previous Credit Agreement. Our Credit Agreement is a $385 million revolving credit facility (subject to limits set forth therein) with Citibank, N.A., as administrative agent, and a syndicate of lenders. Our Credit Agreement amends and restates in its entirety our Previous Credit Agreement.
Our Credit Agreement is a four-year committed facility that initially matures on November 2, 2022. Our Credit Agreement provides us with the ability to request two one-year maturity date extensions, subject to the satisfaction of certain conditions, and allows us the option to increase the maximum amount of credit available up to a total facility size of $500 million, subject to receiving increased commitments from lenders and satisfaction of certain conditions.
Our Credit Agreement and any issuances of letters of credit are available for working capital, capital expenditures, general partnership purposes and continue the indebtedness outstanding under the Previous Credit Agreement. The Credit Agreement includes an aggregate $20 million sublimit for standby letters of credit and a $20 million sublimit for swingline loans. Obligations under the Credit Agreement are guaranteed by our restricted subsidiaries (as such term is defined therein) and are secured by a first priority lien on our assets and those of our restricted subsidiaries, other than certain excluded assets.
On October 29, 2021, we amended our Credit Agreement as discussed in more detail in Note 19. Subsequent Events.


16


Our long-term debt balances included the following components as of the specified dates:
September 30, 2021 December 31, 2020
(in thousands)
Revolving Credit Facility $ 174,000  $ 197,000 
Less: Deferred financing costs, net
(898) (1,520)
Total long-term debt, net $ 173,102  $ 195,480 
We determined the capacity available to us under the terms of our Credit Agreement was as follows as of the specified dates:
September 30, 2021 December 31, 2020
(in millions)
Aggregate borrowing capacity under Credit Agreement
$ 385.0  $ 385.0 
Less: Revolving Credit Facility amounts outstanding
174.0  197.0 
Available under the Credit Agreement based on capacity $ 211.0  $ 188.0 
Available under the Credit Agreement based on covenants (1)
$ 87.4  $ 53.2 
    
(1)    Pursuant to the terms of our Credit Agreement, our borrowing capacity, currently, is limited to 4.5 times our trailing 12-month consolidated EBITDA, which equates to $87.4 million and $53.2 million of borrowing capacity available at September 30, 2021 and December 31, 2020, respectively.
The weighted average interest rate on our outstanding indebtedness was 2.34% and 2.66% at September 30, 2021 and December 31, 2020, respectively, without consideration to the effect of our derivative contracts. In addition to the interest we incur on our outstanding indebtedness, we pay commitment fees of 0.50% on unused commitments, which rate will vary based on our consolidated net leverage ratio, as defined in our Credit Agreement. At September 30, 2021, we were in compliance with the covenants set forth in our Credit Agreement.
Interest expense associated with our outstanding indebtedness was as follows for the specified periods:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands)
Interest expense on the Credit Agreement $ 1,272  $ 1,837  $ 4,184  $ 6,418 
Amortization of deferred financing costs 208  208  622  622 
Total interest expense $ 1,480  $ 2,045  $ 4,806  $ 7,040 

10. COLLABORATIVE ARRANGEMENT
We entered into a facilities connection agreement in 2014 with Gibson under which Gibson developed, constructed and operates a pipeline and related facilities connected to our Hardisty Terminal. Gibson’s storage terminal is the exclusive means by which our Hardisty Terminal receives crude oil. Subject to certain limited exceptions regarding manifest train facilities, our Hardisty Terminal is the exclusive means by which crude oil from Gibson’s Hardisty storage terminal may be transported by rail. We remit pipeline fees to Gibson for the transportation of crude oil to our Hardisty Terminal based on a predetermined formula. Pursuant to our arrangement with Gibson, we incurred pipeline fees of $6.0 million and $5.9 million for the three months ended September 30, 2021 and 2020, respectively, and $18.5 million and $17.7 million for the nine months ended September 30, 2021 and 2020, respectively, which are presented as “Pipeline fees” in our consolidated statements of operations. We have included a liability related to this agreement in “Other current liabilities” on our consolidated balance sheets of $1.0 million and $2.3 million at September 30, 2021 and December 31, 2020, respectively. As discussed in Note 4. Revenues, we have deferred revenue that represents cumulative revenue that has been deferred due to tiered billing provisions, which also results in a deferred pipeline fee expense that is recorded as assets on our Consolidated Balance Sheet. As such, we have included assets related to this agreement in “Prepaid expenses” of

17


$1.1 million at September 30, 2021 and “Other non-current assets” of $2.4 million and $2.9 million at September 30, 2021 and December 31, 2020, respectively, which we will recognize as expense concurrently with the recognition of the associated revenue at out Hardisty Terminal. We had no amounts related to this agreement in “Prepaid expenses” at December 31, 2020.

11. NONCONSOLIDATED VARIABLE INTEREST ENTITIES
Historically we entered into purchase, assignment and assumption agreements to assign payment and performance obligations for certain operating lease agreements with lessors, as well as customer fleet service payments related to these operating leases, with unconsolidated entities in which we had variable interests. These variable interest entities, or VIEs, included LRT Logistics Funding LLC, USD Fleet Funding LLC, USD Fleet Funding Canada Inc., and USD Logistics Funding Canada Inc. We treated those entities as variable interests under the applicable accounting guidance due to their having an insufficient amount of equity invested at risk to finance their activities without additional subordinated financial support. We were not the primary beneficiary of the VIEs, as we did not have the power to direct the activities that most significantly affected the economic performance of the VIEs, nor did we have the power to remove the managing member under the terms of the VIEs’ limited liability company agreements. Accordingly, we did not consolidate the results of the VIEs in our consolidated financial statements.
As of the end of February 2021, the remaining railcar leases associated with these VIEs were either assigned directly to our customers or have expired. As such, we have terminated our relationship with these VIEs discussed herein effective as of the end of February 2021.
The following table summarizes the total assets and liabilities between us and the VIEs as reflected in our consolidated balance sheet at December 31, 2020, as well as our maximum exposure to losses from entities in which we had a variable interest, but were not the primary beneficiary. Generally, our maximum exposure to losses was limited to amounts receivable for services we provided, reduced by any related liabilities.
December 31, 2020
Total assets Total liabilities Maximum exposure to loss
(in thousands)
Accounts receivable
$ 43  $ —  $ 33 
Deferred revenue
—  10  — 
$ 43  $ 10  $ 33 
12. TRANSACTIONS WITH RELATED PARTIES
Nature of Relationship with Related Parties
USD is engaged in designing, developing, owning and managing large-scale multi-modal logistics centers and other energy-related infrastructure across North America. USD is also the sole owner of USDG and the ultimate parent of our general partner. USD is owned by Energy Capital Partners, Goldman Sachs and certain members of its management.
USDG is the sole owner of our general partner and at September 30, 2021, owns 11,557,090 of our common units representing a 41.7% limited partner interest in us. As of September 30, 2021, a value of up to $10.0 million of these common units were pledged as collateral under USDG’s letter of credit facility. USDG also provides us with general and administrative support services necessary for the operation and management of our business.
USD Partners GP LLC, our general partner, currently owns all 461,136 of our general partner units representing a 1.7% general partner interest in us, as well as all of our incentive distribution rights. Pursuant to our partnership agreement, our general partner is responsible for our overall governance and operations. However, our general partner has no obligation to, does not intend to and has not implied that it would, provide financial support to or fund cash flow deficits of the Partnership.

18


USD Marketing LLC, or USDM, is a wholly-owned subsidiary of USDG organized to promote contracting for services provided by our terminals and to facilitate the marketing of customer products.
USD Terminals Canada II ULC, or USDTC II, is an indirect, wholly-owned Canadian subsidiary of USDG, organized for the purposes of pursuing expansion and other development opportunities associated with our Hardisty Terminal, pursuant to the Development Rights and Cooperation agreement between our wholly-owned subsidiary USD Terminals Canada ULC, or USDTC, and USDG. USDTC owns the legacy crude oil loading facility we refer to as the Hardisty Terminal. USDTC II completed construction of the Hardisty South expansion (“Hardisty South”) which commenced operations in January 2019. Hardisty South, which is owned and operated by USDTC II, added one and one-half 120-railcar unit trains of transloading capacity per day, or approximately 112,500 barrels per day, of takeaway capacity to the terminal by modifying the existing loading rack and building additional infrastructure and trackage.
USD Clean Fuels LLC, or USDCF, is a newly formed subsidiary of USD organized for the purpose of providing production and logistics solutions to the growing market for clean energy transportation fuels.
Omnibus Agreement
We are party to an omnibus agreement with USD, USDG and certain of their subsidiaries, or the Omnibus Agreement, including our general partner, pursuant to which we obtain and make payments for specified services provided to us and for out-of-pocket costs incurred on our behalf. We pay USDG, in equal monthly installments, the annual amount USDG estimates will be payable by us during the calendar year for providing services for our benefit. The Omnibus Agreement provides that this amount may be adjusted annually to reflect, among other things, changes in the scope of the general and administrative services provided to us due to a contribution, acquisition or disposition of assets by us or our subsidiaries, or for changes in any law, rule or regulation applicable to us, which affects the cost of providing the general and administrative services. We also reimburse USDG for any out-of-pocket costs and expenses incurred on our behalf in providing general and administrative services to us. This reimbursement is in addition to the amounts we pay to reimburse our general partner and its affiliates for certain costs and expenses incurred on our behalf for managing our business and operations, as required by our partnership agreement.
In June 2021, we entered into an Amended and Restated Omnibus Agreement, or the Amended Omnibus Agreement, with USD, USDG and certain of their subsidiaries, which amends and restates the Omnibus Agreement, dated October 15, 2014, to extend the termination date of the right of first offer period, or ROFO Period, as defined in the Amended Omnibus Agreement, by an additional five years such that the ROFO Period will terminate on October 15, 2026 unless a Partnership Change of Control, as defined in the Amended Omnibus Agreement, occurs prior to such date.
The total amounts charged to us under the Omnibus Agreement for the three months ended September 30, 2021 and 2020 was $1.6 million and $1.7 million, respectively, and for the nine months ended September 30, 2021 and 2020 was $5.0 million and $5.6 million, respectively, which amounts are included in “Selling, general and administrative — related party” in our consolidated statements of operations. We had a payable balance of $0.3 million with respect to these costs at September 30, 2021 and December 31, 2020, included in “Accounts payable and accrued expenses related party” in our consolidated balance sheets.
From time to time, in the ordinary course of business, USD and its affiliates may receive vendor payments or other amounts due to us or our subsidiaries. In addition, we may make payments to vendors and other unrelated parties on behalf of USD and its affiliates for which they routinely reimburse us. We had a receivable balance at September 30, 2021 of $0.1 million related to these transactions included in “Accounts receivable — related party” within our consolidated balance sheet. We had no balance related to these transactions at December 31, 2020.
Marketing Services Agreement - Stroud Terminal
In connection with our purchase of the Stroud Terminal, we entered into a Marketing Services Agreement with USDM, or the Stroud Terminal MSA, in May 2017, whereby we granted USDM the right to market the capacity at the Stroud Terminal in excess of the original capacity of our initial customer in exchange for a nominal

19


per barrel fee. USDM is obligated to fund any related capital costs associated with increasing the throughput or efficiency of the terminal to handle additional throughput. Upon expiration of our contract with the initial Stroud customer in June 2020, the same marketing rights now apply to all throughput at the Stroud Terminal in excess of the throughput necessary for the Stroud Terminal to generate Adjusted EBITDA that is at least equal to the average monthly Adjusted EBITDA derived from the initial Stroud customer during the 12 months prior to expiration. We also granted USDG the right to develop other projects at the Stroud Terminal in exchange for the payment to us of market-based compensation for the use of our property for such development projects. Any such development projects would be wholly-owned by USDG and would be subject to our existing right of first offer with respect to midstream projects developed by USDG. Payments made under the Stroud Terminal MSA during the periods presented in this Report are discussed below under the heading “Related Party Revenue and Deferred Revenue.
Marketing Services Agreement - West Colton Terminal
In June 2021, we entered into a new Terminalling Services Agreement with USDCF that is supported by a minimum throughput commitment to USDCF from an investment-grade rated, refining customer as well as a performance guaranty from USD. The Terminal Services Agreement provides for the inbound shipment of renewable diesel on rail at our West Colton Terminal and the outbound shipment of the product on tank trucks to local consumers. The new terminalling services agreement has an initial term of five years with a target commencement date of December 1, 2021, and we are currently in the process of modifying our existing West Colton Terminal so that it will have the capability to transload renewable diesel in addition to the ethanol that it is currently transloading.
In exchange for the new terminalling agreement at our West Colton Terminal with USDCF discussed above, we also entered into a Marketing Services Agreement in June 2021, or the West Colton MSA, with USDCF pursuant to which we agreed to grant USDCF marketing and development rights pertaining to future renewable diesel opportunities associated with the West Colton Terminal in excess of the initial renewable diesel terminalling services agreement simultaneously executed in June 2021 between us and USDCF. These rights entitle USDCF to market all additional renewable diesel opportunities at the West Colton Terminal during the initial term of the USDCF agreement, and following the initial term of that agreement, all renewable diesel opportunities at the West Colton Terminal in excess of the throughput necessary to generate Adjusted EBITDA for the West Colton Terminal that is at least equal to the average monthly Adjusted EBITDA derived from the initial USDCF agreement during the 12 months prior to expiration of that agreement’s initial five-year term. Pursuant to the West Colton MSA, USDCF will fund any related capital costs associated with increasing the throughput or efficiency of the terminal to handle additional renewable diesel opportunities. In addition, we granted USDCF the right to develop other renewable diesel projects at the West Colton Terminal in exchange for a per barrel fee covering our associated operating costs. Any such development projects would be wholly-owned by USD and would be subject to the right of first offer with respect to midstream infrastructure developed by USD. There have been no payments made under the West Colton MSA during the periods presented in this Report.
Hardisty Terminal Services Agreement
We entered into a terminal services agreement with USDTC II in 2019, whereby Hardisty South will provide terminalling services for a third-party customer of our Hardisty Terminal for contracted capacity that exceeds the transloading capacity currently available. We incurred $1.9 million and $2.1 million of expenses pursuant to the arrangement for the three months ended September 30, 2021 and 2020, respectively, and $6.1 million and $6.2 million for the nine months ended September 30, 2021 and 2020, respectively, which amounts are included in “Operating and maintenance expense related party” in our consolidated statements of operations. These costs represent the same rate, on a per barrel basis, that we received as revenue from our third-party customer, which is included in “Terminalling Services” revenue in our consolidated statements of operations. Additionally, in conjunction with the agreement, we recorded a contract asset of $2.5 million and $1.7 million at September 30, 2021 and December 31, 2020, respectively, on our consolidated balance sheet in “Other current assets related party” and “Other non-current assets related party”, representing prepaid expense associated with this agreement due to tiered billing provisions in the related terminalling services agreements.

20


Hardisty Shared Facilities Agreement
USDTC facilitates the provision of services on behalf of USDTC II pursuant to the terms of a shared facilities agreement, which includes all subcontracted railcar loading, operating, maintenance, pipeline and management services for the entire Hardisty Terminal, including Hardisty South owned by USDTC II. USDTC passes through a proportionate amount of the cost of such services to USDTC II. Our financial statements only reflect the cost incurred by USDTC.
Related Party Revenue and Deferred Revenue
We have agreements to provide terminalling and fleet services for USDM with respect to our Hardisty Terminal and terminalling services with respect to our Stroud Terminal, which also include reimbursement to us for certain out-of-pocket expenses we incur.
USDM assumed the rights and obligations for terminalling capacity at our Hardisty Terminal from another customer in June 2017 to facilitate the origination of crude oil barrels by the Stroud customer from our Hardisty Terminal for delivery to the Stroud Terminal. As a result of USDM assuming these rights and obligations and in order to accommodate the needs of the Stroud customer, the contracted term for the capacity held by USDM at our Hardisty Terminal was extended from June 30, 2019 to June 30, 2020. The terms and conditions of these agreements were similar to the terms and conditions of agreements we have with other parties at the Hardisty Terminal that are not related to us. USDM’s agreement with the third party customer was renewed and extended, effective July 1, 2020, and USDM subsequently assigned its terminalling services agreement with the third party customer directly to us and is therefore no longer a customer at our Hardisty Terminal. USDM controlled approximately 25% of the available monthly capacity of the Hardisty Terminal through June 30, 2020.
In connection with our purchase of the Stroud Terminal, we also entered into a Marketing Services Agreement with USDM, as discussed above. Pursuant to the terms of the agreement, we receive a fixed amount per barrel from USDM in exchange for marketing the additional capacity available at the Stroud Terminal. We also received revenue for providing additional terminalling services at our Hardisty Terminal to USDM pursuant to the terms of its agreement with us. We include amounts received pursuant to these arrangements as revenue in the table below under “Terminalling services — related party” in our consolidated statements of operations. Additionally, we received revenue from USDM for the lease of 200 railcars pursuant to the terms of an existing agreement with us, which is included in the table below under “Fleet leases — related party” and “Fleet services — related party” and in our consolidated statements of operations.

21


Our related party revenues from USD and affiliates are presented below in the following table for the indicated periods:
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(in thousands)
Terminalling services — related party $ 313  $ 1,041  $ 2,527  $ 8,929 
Fleet leases — related party 984  984  2,951  2,951 
Fleet services — related party 227  227  682  682 
Freight and other reimbursables — related party —  65  —  66 
$ 1,524  $ 2,317  $ 6,160  $ 12,628 
We had the following amounts outstanding with USD and affiliates on our consolidated balance sheets as presented below in the following table for the indicated periods:
September 30, 2021 December 31, 2020
(in thousands)
Accounts receivable — related party
$ 2,658  $ 2,460 
Accounts payable and accrued expenses — related party (1)
$ 42  $ 64 
Other current and non-current assets — related party (2)
$ 2,549  $ 1,721 
Other current and non-current liabilities — related party (3)
$ 44  $ — 
Deferred revenue — related party (4)
$ 410  $ 410 
        
(1)Does not include amounts payable to related parties associated with the Omnibus Agreement, as discussed above.
(2)Includes a contract asset associated with the Hardisty Terminal Services Agreement with USDTC II, as discussed above. Also includes a contract asset associated with a lease agreement with USDM. Refer to Note 4. Revenues for further discussion.
(3)Represents a contract liability associated with a lease agreement with USDM and cumulative revenue that has been deferred due to tiered billing provisions. Refer to Note 4. Revenues for further discussion.
(4)Represents deferred revenues associated with our fleet services agreements with USD and affiliates for amounts we have collected from them for their prepaid leases.
Cash Distributions
We paid the following aggregate cash distributions to USDG as a holder of our common units and to USD Partners GP LLC as sole holder of our general partner interest and IDRs.
Distribution Declaration Date Record Date Distribution
Payment Date
Amount Paid to
 USDG
Amount Paid to
USD Partners GP LLC
(in thousands)
January 28, 2021 February 10, 2021 February 19, 2021 $ 1,283  $ 51 
April 22, 2021 May 5, 2021 May 14, 2021 $ 1,312  $ 52 
July 21, 2021 August 4, 2021 August 13, 2021 $ 1,341  $ 53 
13. COMMITMENTS AND CONTINGENCIES
From time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. We do not believe that we are currently a party to any such proceedings that will have a material adverse impact on our financial condition or results of operations.

22


14. SEGMENT REPORTING
We manage our business in two reportable segments: Terminalling services and Fleet services. The Terminalling services segment charges minimum monthly commitment fees under multi-year take-or-pay contracts to load and unload various grades of crude oil into and from railcars, as well as fixed fees per gallon to transload ethanol from railcars, including related logistics services. We also facilitate rail-to-pipeline shipments of crude oil. Our Terminalling services segment also charges minimum monthly fees to store crude oil in tanks that are leased to our customers. The Fleet services segment provides customers with railcars and fleet services related to the transportation of liquid hydrocarbons under multi-year, take-or-pay contracts. Corporate activities are not considered a reportable segment, but are included to present shared services and financing activities which are not allocated to our established reporting segments.
Our segments offer different services and are managed accordingly. Our CODM regularly reviews financial information about both segments in order to allocate resources and evaluate performance. Our CODM assesses segment performance based on the cash flows produced by our established reporting segments using Segment Adjusted EBITDA. Segment Adjusted EBITDA is a measure calculated in accordance with GAAP. We define Segment Adjusted EBITDA as “Net income (loss)” of each segment adjusted for depreciation and amortization, interest, income taxes, changes in contract assets and liabilities, deferred revenues, foreign currency transaction gains and losses and other items which do not affect the underlying cash flows produced by our businesses. As such, we have concluded that disaggregating revenue by reporting segments appropriately depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
Segment Allocation of Certain Selling, General and Administrative Costs
Historically, we have allocated certain selling, general and administrative expenses to our Terminalling services and Fleet services segments that included corporate function personnel costs for managing our business that are allocated to us by our general partner, as well as other administrative expenses including audit fees and certain consulting fees. Beginning with the first quarter in 2021, these selling, general, and administrative expenses that are not directly related to operating our Terminalling services and Fleet services segments will now be allocated to corporate selling, general, and administrative expenses to better reflect the financial results of our Terminalling services and Fleet services segments.


23


Three Months Ended September 30, 2021
Terminalling
services
Fleet
services
Corporate Total
(in thousands)
Revenues
Terminalling services $ 28,070  $ —  $ —  $ 28,070 
Terminalling services — related party 313  —  —  313 
Fleet leases — related party
—  984  —  984 
Fleet services
—  —  —  — 
Fleet services — related party —  227  —  227 
Freight and other reimbursables
135  35  —  170 
Freight and other reimbursables — related party —  —  —  — 
Total revenues
28,518  1,246  —  29,764 
Operating costs
Subcontracted rail services
3,693  —  —  3,693 
Pipeline fees 6,031  —  —  6,031 
Freight and other reimbursables
135  35  —  170 
Operating and maintenance
3,504  993  —  4,497 
Selling, general and administrative
1,205  63  2,977  4,245 
Goodwill impairment loss
—  —  —  — 
Depreciation and amortization
5,604  —  —  5,604 
Total operating costs
20,172  1,091  2,977  24,240 
Operating income (loss)
8,346  155  (2,977) 5,524 
Interest expense
—  —  1,480  1,480 
Gain associated with derivative instruments —  —  (110) (110)
Foreign currency transaction loss (gain)
59  (1) 236  294 
Other expense (income), net
—  (1)
Provision for income taxes
31  18  —  49 
Net income (loss) $ 8,252  $ 138  $ (4,582) $ 3,808 

24


Three Months Ended September 30, 2020
Terminalling
services
Fleet
services
Corporate Total
(in thousands)
Revenues
Terminalling services $ 28,905  $ —  $ —  $ 28,905 
Terminalling services — related party 1,041  —  —  1,041 
Fleet leases — related party
—  984  —  984 
Fleet services
—  51  —  51 
Fleet services — related party —  227  —  227 
Freight and other reimbursables
32  32  —  64 
Freight and other reimbursables — related party —  65  —  65 
Total revenues
29,978  1,359  —  31,337 
Operating costs
Subcontracted rail services
2,300  —  —  2,300 
Pipeline fees 5,936  —  —  5,936 
Freight and other reimbursables
32  97  —  129 
Operating and maintenance
3,375  1,026  —  4,401 
Selling, general and administrative
1,315  197  2,733  4,245 
Goodwill impairment loss
—  —  —  — 
Depreciation and amortization
5,430  —  —  5,430 
Total operating costs
18,388  1,320  2,733  22,441 
Operating income (loss)
11,590  39  (2,733) 8,896 
Interest expense
—  —  2,045  2,045 
Loss associated with derivative instruments —  —  1,200  1,200 
Foreign currency transaction loss (gain)
46  (293) (246)
Other income, net
(25) (8) —  (33)
Benefit from income taxes
(293) (14) —  (307)
Net income (loss) $ 11,862  $ 60  $ (5,685) $ 6,237 

25


Nine Months Ended September 30, 2021
Terminalling
services
Fleet
services
Corporate Total
(in thousands)
Revenues
Terminalling services $ 87,167  $ —  $ —  $ 87,167 
Terminalling services — related party 2,527  —  —  2,527 
Fleet leases — related party
—  2,951  —  2,951 
Fleet services
—  24  —  24 
Fleet services — related party —  682  —  682 
Freight and other reimbursables
435  98  —  533 
Freight and other reimbursables — related party —  —  —  — 
Total revenues
90,129  3,755  —  93,884 
Operating costs
Subcontracted rail services
10,357  —  —  10,357 
Pipeline fees 18,475  —  —  18,475 
Freight and other reimbursables
435  98  —  533 
Operating and maintenance
11,138  2,984  —  14,122 
Selling, general and administrative
3,279  228  9,507  13,014 
Goodwill impairment loss
—  —  —  — 
Depreciation and amortization
16,575  —  —  16,575 
Total operating costs
60,259  3,310  9,507  73,076 
Operating income (loss)
29,870  445  (9,507) 20,808 
Interest expense
—  —  4,806  4,806 
Gain associated with derivative instruments —  —  (2,468) (2,468)
Foreign currency transaction loss (gain)
249  —  (57) 192 
Other income, net
(11) —  (2) (13)
Provision from income taxes
373  66  —  439 
Net income (loss) $ 29,259  $ 379  $ (11,786) $ 17,852 

26


Nine Months Ended September 30, 2020
Terminalling
services
Fleet
services
Corporate Total
(in thousands)
Revenues
Terminalling services $ 75,449  $ —  $ —  $ 75,449 
Terminalling services — related party 8,929  —  —  8,929 
Fleet leases — related party
—  2,951  —  2,951 
Fleet services
—  152  —  152 
Fleet services — related party —  682  —  682 
Freight and other reimbursables
681  69  —  750 
Freight and other reimbursables — related party —  66  —  66 
Total revenues
85,059  3,920  —  88,979 
Operating costs
Subcontracted rail services
8,433  —  —  8,433 
Pipeline fees 17,678  —  —  17,678 
Freight and other reimbursables
681  135  —  816 
Operating and maintenance
11,067  3,071  —  14,138 
Selling, general and administrative
4,455  723  8,695  13,873 
Goodwill impairment loss 33,589  —  —  33,589 
Depreciation and amortization
16,055  —  —  16,055 
Total operating costs
91,958  3,929  8,695  104,582 
Operating loss
(6,899) (9) (8,695) (15,603)
Interest expense
—  —  7,040  7,040 
Loss associated with derivative instruments —  —  4,405  4,405 
Foreign currency transaction loss (gain)
53  (2) 761  812 
Other income, net
(864) (8) (4) (876)
Benefit from income taxes
(132) (494) —  (626)
Net income (loss) $ (5,956) $ 495  $ (20,897) $ (26,358)

27


Segment Adjusted EBITDA
The following tables present the computation of Segment Adjusted EBITDA, which is a measure determined in accordance with GAAP, for each of our segments for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
Terminalling Services Segment 2021 2020 2021 2020
(in thousands)
Net income (loss) $ 8,252  $ 11,862  $ 29,259  $ (5,956)
Interest income (1)
—  (1) (1) (24)
Depreciation and amortization 5,604  5,430  16,575  16,055 
Provision for (benefit from) income taxes 31  (293) 373  (132)
Foreign currency transaction loss (2)
59  46  249  53 
Loss associated with disposal of assets —  11  — 
Goodwill impairment loss —  —  —  33,589 
Non-cash deferred amounts (3)
118  (16) 2,344  1,540 
Segment Adjusted EBITDA $ 14,070  $ 17,028  $ 48,810  $ 45,125 
    

(1)    Represents interest income associated with our Terminalling Services segment that is included in “Other income, net” in our consolidated statements of operations.
(2)    Represents foreign exchange transaction amounts associated with activities between our U.S. and Canadian subsidiaries.
(3)    Represents the change in non-cash contract assets and liabilities associated with revenue recognized at blended rates based on tiered rate structures in certain of our customer contracts and deferred revenue associated with deficiency credits that are expected to be used in the future prior to their expiration. Amounts presented are net of the corresponding prepaid Gibson pipeline fee that will be recognized as expense concurrently with the recognition of revenue.
Three Months Ended September 30, Nine Months Ended September 30,
Fleet Services Segment 2021 2020 2021 2020
(in thousands)
Net income $ 138  $ 60