USD Partners LP (NYSE:USDP) (the “Partnership”) announced today that it
has entered into a four year extension with Cenovus Energy Inc.,
significantly increasing its previous position from 7% to 25% of the
Hardisty terminal’s capacity. The renewal contains consistent
take-or-pay terms with minimum monthly payments and rates that exceed
those of the original terminalling services agreement with the customer.
“We are pleased to announce another early extension with one of our
long-term customers at our Hardisty terminal,” said Jim
Albertson, USD’s Senior Vice President, Canadian Business Unit. “This
contract extension, along with the first extension we announced earlier
this year, represents a meaningful increase in our contracted capacity
at the Hardisty rail terminal and is confirmation of the significant
demand that exists for takeaway capacity out of Western Canada. We
continue to work with the balance of our customers as well as new
customers on contracting the remaining available capacity.”
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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements with
respect to the status and outcome of negotiations with existing and new
customers, demand for terminalling capacity at the Hardisty terminal,
and the amount of available capacity at the Hardisty terminal. Words and
phrases such as “is expected,” “is planned,” “believes,” “projects,” and
similar expressions are used to identify such forward-looking
statements. However, the absence of these words does not mean that a
statement is not forward-looking. Forward-looking statements relating to
USD or the Partnership are based on management’s expectations, estimates
and projections about USD, the Partnership and the energy industry in
general on the date this press release was issued. These statements are
not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed
or forecast in such forward-looking statements. Factors that could cause
actual results or events to differ materially from those described in
the forward-looking statements include construction and cost-related
risks; risks associated with constructing and operating terminals;
changes in general economic conditions; the effects of competition, in
particular, by pipelines and other terminalling facilities; the supply
of, and demand for, rail terminalling services for crude oil, refined
products and biofuels; hazards and operating risks that may not be
covered fully by insurance; disruptions due to equipment interruption or
failure at the Hardisty terminal or third-party facilities on which our
business is dependent; natural disasters, weather-related delays,
casualty losses and other matters beyond our control; and changes in
laws or regulations to which we are subject, including compliance with
environmental and operational safety regulations, that may increase our
costs. Additional factors that could cause actual results or events to
differ materially from those described in the forward-looking statements
are included under the heading “Risk Factors” in the Partnership’s most
recent Annual Report on Form 10-K and in the Partnership’s subsequent
filings with the Securities and Exchange Commission. Neither USD nor the
Partnership is under any obligation (and each expressly disclaims any
such obligation) to update or alter the forward-looking statements set
forth in this press release, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180926006054/en/
Copyright Business Wire 2018
Source: Business Wire
(September 26, 2018 - 5:14 PM EDT)
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