The completion of the Stroud terminal retrofit activities on time and under budget and activity at the Hardisty terminal reached two-year highs during the quarter are two of the highlights of USD Partners’ third quarter.
During the quarter the company generated net cash of $16.2m with an EBITDA of $13.4m and cash flow of $13.6m. Net income was $6.4m.
The Partnership’s Chief Executive Officer, Dan Borgen said: “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. We look forward to leveraging our flexible and scalable network to deliver timely solutions for our current and future customers.”
On June 2, 2017, the Partnership acquired a 76-acre crude oil terminal in Stroud, Oklahoma to facilitate rail-to-pipeline shipments of crude oil from its Hardisty terminal to Cushing, Oklahoma. Following the acquisition, the Partnership spent approximately $1.2m on retrofit activities necessary to handle heavy grades of Canadian crude oil on behalf of the customer. Operations commenced on October 1st.
Concurrent with the Stroud acquisition, the Partnership entered a new multi-year, take-or-pay terminalling services agreement for use of 50% of the available capacity at the Stroud terminal from October 2017 through to June 2020.
The Partnership expects the Stroud terminal to generate net cash flows from operating activities of approximately $1.5m during the fourth quarter of 2017 and approximately $10.2m during 2018.
For more information visit www.usdpartners.com
13th November 2017