USD Partners Sells Its Casper Rail Terminal for $33 Million
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A wholly-owned subsidiary of USD Partners has entered into a membership interest purchase agreement with South 49 Holdings Ltd., a member of the midstream energy partners group of companies.
Upon the terms and subject to the conditions set forth in the purchase agreement, the partnership agreed to sell its Casper rail terminal to the buyer for a cash purchase price of approximately $33 million, subject to customary adjustments. The transaction is expected to close prior to the end of the second quarter of 2023.
“As we continue to transition our business to lower carbon solutions, including our DRUbit™ by Rail™ network, we are reviewing all assets and their strategic fit in our growth plans,” said Dan Borgen, the Partnership’s chief executive officer.
“As we mentioned on our Q4 2022 earnings call, we remain committed to converting all of our dilbit capacity to our long-term sustainable DRUbit™ program at the Partnership’s Hardisty Terminal, which is supported by investment grade counterparties and ten year, take-or-pay contracts,” added Borgen.
USD Partners is a fee-based, growth-oriented master limited partnership formed in 2014 by US Development Group 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, refiners and marketers. 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.
USD, which owns the general partner of USD Partners LP, is engaged in designing, developing, owning, and managing large-scale multi-modal logistics centers and energy-related infrastructure across North America. USD’s solutions create flexible market access for customers in significant growth areas and key demand centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among other projects, USD is currently pursuing the development of a premier energy logistics terminal on the Houston Ship Channel with capacity for substantial tank storage, multiple docks (including barge and deepwater), inbound and outbound pipeline connectivity, as well as a rail terminal with unit train capabilities.
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