USD Partners LP Announces Third Quarter 2017 Results
Houston, TX - USD Partners LP (NYSE: USDP) (the “Partnership”) announced today its operating and financial results for the three and nine months ended September 30, 2017. Highlights with respect to the third quarter of 2017 include the following:
Completed Stroud terminal retrofit activities on time and under the Partnership’s initial budget, resulting in the commencement of operations on October 1, 2017
Activity at the Hardisty terminal reached two-year highs during the quarter
Generated Net cash provided by operating activities of $16.2 million, Adjusted EBITDA of $13.4 million and Distributable cash flow of $13.6 million
Reported Net income of $6.4 million
Increased quarterly cash distribution for tenth consecutive quarter to $0.345 per unit ($1.38 per unit annualized) while maintaining approximately 1.5x coverage
Ended quarter with $206.8 million of available liquidity
“Multiple market indicators are confirming our long-held thesis about the upcoming opportunity to provide critical takeaway capacity for growing crude oil production in Western Canada,” said Dan Borgen, the Partnership’s Chief Executive Officer. “We look forward to leveraging our flexible and scalable network to deliver timely solutions for our current and future customers.”
Stroud Terminal Update
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. Following the acquisition, the Partnership spent approximately $1.2 million of growth capital expenditures on retrofit activities necessary to handle heavy grades of Canadian crude oil on behalf of the customer. These efforts were completed on time and under the Partnership’s initial budget. As such, the Partnership successfully commenced operations at the Stroud terminal on October 1, 2017.
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 for use of approximately 50% of the available capacity at the Stroud terminal from October 2017 through June 2020. The Partnership expects the Stroud terminal to generate net cash flows from operating activities of approximately $1.5 million during the fourth quarter of 2017 and approximately $10.2 million during 2018.
Third Quarter 2017 Operational and Financial Results
Substantially all of the Partnership’s cash flows are generated from multi-year, take-or-pay terminal service agreements, which include minimum monthly commitment fees. The Partnership’s customers include major integrated oil companies, refiners and marketers, the majority of which are investment grade rated.
The following information was filed by Usd Partners Lp (USDP) on Tuesday, November 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: 0001610682-17-000109 Submitted to the SEC: Wed Nov 08 2017 4:34:38 PM EST Accepted by the SEC: Wed Nov 08 2017 Period: Saturday, September 30, 2017 Industry: Railroad Switching And Terminal Establishments