USD Partners Announces Contract Extension at Hardisty Terminal
June 26 2018 - 6:45AM
Business Wire
USD Partners LP (NYSE:USDP) (the “Partnership”) announced today
that it has entered into a multi-year renewal and extension of
approximately 25% of the capacity at its Hardisty rail terminal
with one of its existing investment grade customers. The renewal
contains consistent take-or-pay terms with minimum monthly payments
and rates that exceed those of the original terminalling services
agreement.
“We are excited to announce that we have executed an early
extension with one of our investment grade customers at our
Hardisty Terminal,” said Jim Albertson, USD’s Senior Vice
President, Canadian Business Unit. “This agreement and the fact
that our existing customers are already at the table negotiating
extensions validate the value that our Hardisty terminal offers
current and potential new customers, given the current macro
pricing environment and pipeline takeaway capacity constraints out
of Western Canada. We are actively engaged in discussions with
other customers for the remaining limited capacity at the Hardisty
terminal and look forward to making more announcements and
providing more details regarding our contract extensions in the
future.”
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited
partnership formed in 2014 by US Development Group, LLC to acquire,
develop and operate midstream infrastructure and complementary
logistics solutions for crude oil, biofuels and other
energy-related products. The Partnership generates substantially
all of its operating cash flows from multi-year, take-or-pay
contracts with primarily investment grade customers, including
major integrated oil companies and refiners. The Partnership’s
principal assets include a network of crude oil terminals that
facilitate the transportation of heavy crude oil from Western
Canada to key demand centers across North America. The
Partnership’s operations include railcar loading and unloading,
storage and blending in on-site tanks, inbound and outbound
pipeline connectivity, truck transloading, as well as other related
logistics services. In addition, the Partnership provides customers
with leased railcars and fleet services to facilitate the
transportation of liquid hydrocarbons and biofuels by rail.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws, including statements
with respect to the status and outcome of negotiations with
existing and new customers, demand for terminalling capacity at the
Hardisty terminal, and the amount of available capacity at the
Hardisty terminal. Words and phrases such as “is expected,” “is
planned,” “believes,” “projects,” and similar expressions are used
to identify such forward-looking statements. However, the absence
of these words does not mean that a statement is not
forward-looking. Forward-looking statements relating to USD or the
Partnership are based on management’s expectations, estimates and
projections about USD, the Partnership and the energy industry in
general on the date this press release was issued. These statements
are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from
what is expressed or forecast in such forward-looking statements.
Factors that could cause actual results or events to differ
materially from those described in the forward-looking statements
include construction and cost-related risks; risks associated with
constructing and operating a terminals; changes in general economic
conditions; the effects of competition, in particular, by pipelines
and other terminalling facilities; the supply of, and demand for,
rail terminalling services for crude oil, refined products and
biofuels; hazards and operating risks that may not be covered fully
by insurance; disruptions due to equipment interruption or failure
at the Hardisty terminal or third-party facilities on which our
business is dependent; natural disasters, weather-related delays,
casualty losses and other matters beyond our control; and changes
in laws or regulations to which we are subject, including
compliance with environmental and operational safety regulations,
that may increase our costs. Additional factors that could cause
actual results or events to differ materially from those described
in the forward-looking statements are included under the heading
“Risk Factors” in the Partnership’s most recent Annual Report on
Form 10-K and in the Partnership’s subsequent filings with the
Securities and Exchange Commission. Neither USD nor the Partnership
is under any obligation (and each expressly disclaims any such
obligation) to update or alter the forward-looking statements set
forth in this press release, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180626005791/en/
USD Partners LPAdam Altsuler, 281-291-3995Senior Vice President,
Chief Financial Officeraaltsuler@usdg.com
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