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USD Partners Advances Construction of Pipeline Connection at Casper Terminal, Wyoming

Published: December 19, 2018 |

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USD Partners LP has entered into a three-year agreement at its Casper Terminal with a new multi-national, investment grade customer. The agreement contains take-or-pay terms for terminalling and storage services, as well as fees associated with actual throughput volumes and other services.

The agreement will support the construction of an outbound pipeline connection from the Casper Terminal to complement its current inbound pipeline connection to the Express Pipeline and an additional storage tank to facilitate blending and staging operations for the customer. The customer will utilize an existing tank at the Casper Terminal for a three-year term and a second tank, once constructed or available, for another three-year term. The construction of the second tank, if needed, is expected to be completed in the second half of 2019.

“We are pleased to announce this strategic investment in our Casper Terminal. We have mentioned our hub strategy at Casper on previous public earnings calls, and this is the first step in realizing that vision. The outbound pipeline connection and additional storage capacity at Casper will contribute to the long-term sustainability of the terminal, giving our customers increased connectivity to various refining centers and pipeline networks,” said Randy Balhorn, US Development Group’s vice president of business eevelopment.

“We are excited to announce this accretive, organic growth project at the partnership. The partnership intends to spend approximately $16 million of capital expenditures on the new pipeline connection and storage tank capacity at Casper, which we expect will be completed at an attractive build multiple between 3.0-5.0x Adjusted EBITDA, depending on actual throughput. The total spend will be funded from cash flows from operations and borrowings on our revolving credit facility,” said Adam Altsuler, the Partnership’s chief financial officer.


About USD Partners LP
USD Partners LP is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group, LLC to acquire, develop and operate midstream infrastructure and complementary logistics solutions for crude oil, biofuels and other energy-related products. The partnership generates substantially all of its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers, including major integrated oil companies and refiners. The partnership’s principal assets include a network of crude oil terminals that facilitate the transportation of heavy crude oil from Western Canada to key demand centers across North America. The partnership’s operations include railcar loading and unloading, storage and blending in on-site tanks, inbound and outbound pipeline connectivity, truck transloading, as well as other related logistics services. In addition, the partnership provides customers with leased railcars and fleet services to facilitate the transportation of liquid hydrocarbons and biofuels by rail.

To stop by USD Partners’ website, CLICK HERE


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