Arc Logistics Partners has acquired all of the limited liability company interests of UET Midstream, LLC from United Energy Trading, LLC and Hawkeye Midstream, LLC for approximately US$76.6 million.
UET Midstream’s principal assets consist of the Pawnee Terminal, a newly constructed crude oil terminal and a nearby development property in north-eastern Weld County, Colorado. The Pawnee Terminal serves as the primary injection point on the Northeast Colorado Lateral of the Pony Express Pipeline, providing Pawnee Terminal customers with ultimate service to Cushing, Oklahoma.
Pawnee has approximately 200,000 barrels of commingled storage (with room for additional capacity) and is capable of receiving crude oil via truck unloading stations and connections to local crude oil gathering systems. The terminal is servicing several third-party contracts with a weighted average contract life of approximately five years, with aggregate take-or-pay volume commitments increasing each year during such five-year period.
It is expected to contribute initial minimum contracted annual EBITDA of $9 million to $9.5 million.
The nearby development property is being permitted to build a potential new crude injection terminal that, if constructed, would have the ability to provide new and existing customers additional unloading capacity and tankage and allow for incremental volumes to be delivered to the Northeast Colorado Lateral.