USD Partners LP Announces Second Quarter 2017 Results
Houston, TX - USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its operating and financial results for the three and six months ended June 30, 2017. Highlights with respect to the second quarter of 2017 include the following:
Established rail-to-pipeline solution from Western Canada with the Stroud terminal acquisition, which ~$25 million in total acquisition and other costs represents approximately 2.5x the estimated 2018 Adjusted EBITDA expected to be generated by the three-year, take-or-pay contract signed concurrently with the transaction
Extended contracted term for 25% of Hardisty terminal’s available capacity through mid-2020
Generated Net cash provided by operating activities of $9.3 million, Adjusted EBITDA of $15.1 million and Distributable cash flow of $11.7 million
Reported Net income of $8.4 million
Raised $33.7 million from public equity offering of 3,000,000 units
Increased quarterly cash distribution for ninth consecutive quarter to $0.34 per unit ($1.36 per unit annualized)
Ended quarter with $201.2 million of available liquidity
“Our Stroud terminal acquisition − supported by a new customer and multi-year take-or-pay cash flows − demonstrates the ongoing value of rail takeaway solutions for Western Canada’s vast crude oil resource,” said Dan Borgen, the Partnership’s Chief Executive Officer. “We believe our origin-to-destination capabilities and rail-to-pipeline solutions will drive additional commercial opportunities at the Partnership, particularly as current production normalizes and grows, new projects are brought online and available takeaway capacity becomes constrained.”
On June 2, 2017, the Partnership acquired a 76-acre crude oil terminal in Stroud, Oklahoma (the “Stroud terminal”) to facilitate rail-to-pipeline shipments of crude oil from its Hardisty terminal to Cushing, Oklahoma. The Stroud terminal includes unit train-capable unloading capacity of approximately 50,000 barrels per day, or Bpd, expandable to approximately 70,000 Bpd, as well as onsite tanks with 140,000 barrels of total capacity and a truck bay. Additionally, the terminal includes a 12-inch diameter, 17-mile pipeline with a direct connection to the crude oil storage hub located in Cushing, Oklahoma. The Partnership also obtained a lease for 300,000 barrels of crude oil tank storage at the Cushing hub to receive outbound shipments of crude oil from the Stroud terminal. Inbound product is delivered by the Stillwater Central Rail, which handles deliveries from both the BNSF and the Union Pacific railways.
Concurrent with the Stroud acquisition, the Partnership entered into a new multi-year, take-or-pay terminalling services agreement with an investment grade rated multi-national energy company (the “Stroud customer”) for use of approximately 50% of the available capacity at the Stroud terminal from October 2017 through June 2020. Additionally, to facilitate the origination of barrels from the Partnership’s Hardisty terminal to be
The following information was filed by Usd Partners Lp (USDP) on Monday, August 7, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: USDP CIK: 1610682 Form Type:10-Q Quarterly Report Accession Number: 0001610682-17-000091 Submitted to the SEC: Tue Aug 08 2017 4:40:23 PM EST Accepted by the SEC: Tue Aug 08 2017 Period: Friday, June 30, 2017 Industry: Railroad Switching And Terminal Establishments