13.10.15. USD Partners LP has agreed to buy 100 percent of the equity in Casper Crude to Rail, LLC from Stonepeak Infrastructure Partners, Cogent Energy Solutions and The Granite Peak Group for US$225 million. The purchase price includes $208.3 million of cash and $16.7 million of limited partner units issued to the sellers.
The Casper terminal’s principal assets include a unit train-capable crude oil loading rail terminal with 100,000 bpd of capacity and dual loop tracks, six customer-dedicated storage tanks with 900,000 barrels of total capacity, and a six-mile, 24ins diameter pipeline with a direct connection from Spectra Energy Partners LP’s Express crude oil pipeline, which runs from Hardisty, Alberta, to Casper, Wyoming, and provides access to multiple grades of Canadian crude oil.
The terminal’s location supports access to multiple refining centres across the US, with onsite storage and blending capabilities, and enables customers to ship crude from Casper. Additionally, the terminal’s footprint and modular design allows for the addition of a second loading station and an additional 1.1 million barrels of storage with minimal disruption to operations and relatively low incremental capital costs.
The Casper terminal started operations in September 2014 and is supported by take-or-pay contracts with primarily investment grade refiners and a weighted-average remaining contract life of approximately three years. For the full year 2016, the Casper terminal is expected to contribute minimum contracted adjusted EBITDA of approximately $26 million.