USD Partners LP Announces Second Quarter 2018 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, 2018. Financial highlights with respect to the second quarter of 2018 include the following:
Generated Net Cash Provided by Operating Activities of $11.5 million, Adjusted EBITDA of $15.0 million and Distributable Cash Flow of $12.2 million
Reported Net Income of $6.7 million
Increased quarterly cash distribution to $0.3550 per unit ($1.42 per unit on an annualized basis), representing an increase of 4.4% over the second quarter of 2017
Ended quarter with $203.9 million of available liquidity and distribution coverage of approximately 1.3x
“We are proud to announce another successful quarter at the Partnership. During the quarter, the Partnership announced the execution of an early extension with one of its investment grade customers at the Hardisty Terminal as well as the thirteenth consecutive increase of its quarterly distribution, which was supported by strong distribution coverage of approximately 1.3x,” said Dan Borgen, the Partnership’s Chief Executive Officer. “Our customers’ interest in negotiating extended, long-term commitments at Hardisty well in advance of their existing contract expirations strongly validates our strategic commercial vision, and we look forward to updating the market with continued progress in the near future.”
Recent Commercial Developments
On June 26, 2018, the Partnership announced that it had 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.
As previously mentioned, customer activity at the Hardisty origination terminal has increased substantially over the last several months. Current market demand for the services provided at the Hardisty terminal exceeds the available capacity, as substantially all of the terminal’s capacity was previously contracted by customers under multi-year agreements through mid-2019 or mid-2020. As a result, the Partnership’s sponsor is evaluating a potential expansion to meet customer demand. The Partnership is also actively negotiating with current customers to extend the terms of their existing take-or-pay agreements.
On June 7, 2018, USD Group LLC (“USDG”) and the Partnership announced that USDG had executed a five-year, take-or-pay terminalling services agreement with a high quality refiner customer. The agreement is for trans-loading capacity at the Hardisty rail terminal with an expected start date in late 2018. This new agreement could support the construction of additional capacity at the Hardisty terminal pursuant to USDG’s existing development rights.
The following information was filed by Usd Partners Lp (USDP) on Monday, August 6, 2018 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: 0001610682-18-000077 Submitted to the SEC: Tue Aug 07 2018 4:11:11 PM EST Accepted by the SEC: Tue Aug 07 2018 Period: Saturday, June 30, 2018 Industry: Railroad Switching And Terminal Establishments