USD Partners has seen increased activity at its Hardisty origination terminal in the first quarter, prompting it to explore a potential expansion to meet demand.
“Customer activity at our Hardisty origination terminal has ramped up substantially over the last several months and current market demand exceeds the available capacity at the terminal,” said Dan Borgen, the Partnership’s Chief Executive Officer. He commented that the company is “evaluating a potential expansion” to meet near-term demand.
“The recent success we had filling the remaining capacity at our Stroud terminal with crude originated at our Hardisty terminal simply validates the significant value our network can provide,” said Dan.
The announcement comes alongside the publication of the company’s first quarter results, which saw it generate $8.1m in net cash from operating activities, with an adjusted EBITDA of $13.5m. The company reported a net Income of $6.6m.
The partnership’s Hardisty and Casper terminals, with established capacity and scalable designs, are well-positioned at strategic locations to meet growing takeaway needs as Western Canadian crude oil supplies continue to exceed available pipeline takeaway capacity.
Additionally, USD noted its Stroud terminal provides an advantaged rail destination for Western Canadian crude oil given the optionality provided by its connectivity to the Cushing hub and multiple refining centres across the U.S. It expects these advantages to “result in long-term contract extensions and expansion opportunities” across its terminal network.
For more information, visit: www.usdpartners.com
9th May 2018