USD Partners LP USDP, -1.59% (the “Partnership”) appear today its operating and banking after-effects for the three and nine months assured September 30, 2018. Banking highlights with account to the third division of 2018 accommodate the following:
“We are admiring to advertise accession absolute division at the Affiliation and our fourteenth afterwards annual administration increase, accurate by able administration advantage of about 1.2x,” said Dan Borgen, the Partnership’s Chief Executive Officer. “We are additionally admiring to advertise connected abutment in the anatomy of accession absolute arrangement addendum at our Hardisty terminal. With $40 to $50 differentials amid a Western Canadian Baddest and a West Texas Intermediate of awkward oil absolute today, and advanced curves advertence a connected alterity amid accumulation and takeaway accommodation in Western Canada, we abide aflame about our strategically amid arrangement of assets and we attending advanced to communicating added absolute account in the future.”
“The Affiliation additionally appear it has auspiciously renewed and connected its chief anchored acclaim adeptness with a slight beforehand in pricing,” said Adam Altsuler, the Partnership’s Chief Banking Officer. “The success of the refinancing was abundantly due to our able and admiring coffer group, our bourgeois clamminess and advantage position, and the absolute bazaar angle for our strategically amid assets.”
Contempo Bartering Developments
Today, the Affiliation appear that it has entered into a four-year addendum with a Canadian-based, oil basement focused aggregation at its Hardisty terminal. The chump has decidedly added its position by added than acceleration its apprenticed accommodation at the terminal. The addendum contains constant take-or-pay acceding with boilerplate minimum account payments and ante that beat those of the aboriginal terminalling casework acceding (“TSA”) with this customer.
On September 26, 2018, the Affiliation appear that it had entered into a four-year addendum with Cenovus Activity Inc., decidedly accretion its antecedent position from 7% to 25% of the Hardisty terminal’s capacity. The addendum contains constant take-or-pay acceding with boilerplate minimum account payments and ante that beat those of the aboriginal TSA with this customer.
To date, the Affiliation has renewed and connected about 65% of the accommodation at its Hardisty terminal through mid-2022, with about 42% connected through mid-2023. These arrangement renewals will accomplish allusive increases in acquirement for the Affiliation and are estimated to adapt about 80% of the Hardisty terminal’s accepted banknote flows, on an annualized basis, over the aing three years starting in July 2019.
Additionally, USD Accumulation LLC (“USDG”) confirmed, pursuant to its development rights at the Hardisty terminal, that it is affective advanced with the Hardisty South amplification (“Hardisty South”). The absolute Hardisty terminal, which is endemic by the Partnership, has brash accommodation for two assemblage trains per day, or about 150,000 barrels per day. Hardisty South, which is endemic by USDG, will add one assemblage alternation per day, or about 75,000 barrels per day, of takeaway accommodation to the terminal by modifying the absolute loading arbor and architecture added basement and trackage. The action is accepted to be in-service by January 1, 2019. To date, about 67% of Hardisty South’s accommodation has been commercialized through take-or-pay agreements with minimum aggregate commitments, which are accepted to accomplish an boilerplate of about $11.1 actor of banknote breeze over the aing four years for USDG.
Third Division 2018 Liquidity, Operational and Banking After-effects
Substantially all of the Partnership’s banknote flows are generated from multi-year, take-or-pay terminalling casework agreements accompanying to its awkward oil terminals, which accommodate minimum account charge fees. The Partnership’s barter accommodate aloft chip oil companies, refiners and marketers, the majority of which are investment-grade rated.
The Partnership’s after-effects during the third division of 2018 about to the aforementioned division in 2017 were primarily afflicted by added revenues and costs accompanying to the admission of operations at the Stroud terminal in October 2017 and the cessation of a chump acceding at the Partnership’s Casper terminal in August 2017. In addition, as a aftereffect of a abundant admission in chump action at its Hardisty terminal, the Affiliation incurred incremental operating costs during the third division of 2018.
Net Banknote Provided by Operating Activities decreased by 17% about to the third division of 2017, primarily due to the cessation of a chump acceding at the Partnership’s Casper terminal in August 2017 and the timing of receipts and payments on accounts receivable, accounts payable and deferred acquirement balances.
Adjusted EBITDA added by 9% and Distributable Banknote Breeze (“DCF”) decreased by 14% about to the third division of 2017. The admission in Adapted EBITDA was primarily a aftereffect of the admission of operations at the Stroud terminal in October 2017. The abatement in DCF was due primarily to a banknote acquittance of about $2.6 actor that the Affiliation accustomed during the third division of 2017 in affiliation with Canadian assets tax allotment for 2016 that were filed in 2017, against banknote paid for taxes of about $0.2 actor during the third division of 2018.
Net assets for the division added by 12% as compared to the third division of 2017, primarily as a aftereffect of the operating factors discussed aloft accompanying with a non-cash accretion associated with the five-year absorption bulk acquired apparatus that the Affiliation entered into in November 2017, partially account by added absorption bulk incurred associated with college absorption ante during the third division of 2018.
As of September 30, 2018, the Affiliation had absolute accessible clamminess of $206.4 million, including $7.4million of complete banknote and banknote equivalents and undrawn borrowing accommodation of $199.0 actor on its $400.0 actor chief anchored acclaim facility, accountable to connected acquiescence with banking covenants. The Affiliation is in acquiescence with its banking covenants.
On November 2, 2018, the Affiliation adapted and restated its chief anchored acclaim adeptness with a syndicate of lenders. The new chief anchored acclaim adeptness is a four-year committed adeptness that matures in November 2022, with a borrowing accommodation of $385 million, accountable to the banned set alternating therein. The new acceding includes a abridgement of 25 base credibility to the applicative allowance the Affiliation is answerable on LIBOR-based borrowings to a ambit of 2.00% to 3.00% which is based on the Partnership’s net advantage ratio. The new acceding additionally provides the Affiliation with the adeptness to appeal two one-year adeptness date extensions, accountable to the achievement of assertive conditions, and allows the Affiliation the advantage to admission the best bulk of acclaim accessible up to a absolute adeptness admeasurement of $500 million, accountable to accepting added commitments from lenders and achievement of assertive conditions.
On October 25, 2018, the Affiliation declared a annual banknote administration of $0.3575 per assemblage ($1.43 per assemblage on an annualized basis), which represents beforehand of 0.7% over the above-mentioned division and 3.6% over the third division of 2017. The administration is payable on November 14, 2018, to unitholders of almanac at the aing of business on November 6, 2018.
Effective January 1, 2018, the Affiliation adopted the requirements of Accounting Standards Amend 2014-09, or ASC 606, which provides a distinct absolute archetypal for entities to use in accounting for acquirement arising from affairs with customers. The Affiliation adopted ASC 606 by applying the abounding attendant approach, consistent in the digest of above-mentioned aeon banking statements to accede with the new standard.
Third Division 2018 Appointment Alarm Advice
The Affiliation will host a appointment alarm and webcast apropos third division 2018 after-effects at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on Tuesday, November 6, 2018.
To accept alive over the Internet, participants are brash to log on to the Partnership’s website at www.usdpartners.com and baddest the “Events & Presentations” sub-tab beneath the “Investors” tab. To accompany via telephone, participants may punch (877) 266-7551 domestically or 1 (339) 368-5209 internationally, appointment ID 1777877. Participants are brash to punch in at atomic bristles account above-mentioned to the call.
An audio epitomize of the appointment alarm will be accessible for thirty canicule by dialing (800) 585-8367 domestically or 1 (404) 537-3406 internationally, appointment ID 1777877. In addition, a epitomize of the audio webcast will be accessible by accessing the Partnership’s website afterwards the alarm is concluded.
About USD Partners LP
USD Partners LP is a fee-based, growth-oriented adept bound affiliation formed in 2014 by US Development Group, LLC (“USDG”) to acquire, beforehand and accomplish midstream basement and commutual acumen solutions for awkward oil, biofuels and added energy-related products. The Affiliation generates essentially all of its operating banknote flows from multi-year, take-or-pay affairs with primarily beforehand brand customers, including aloft chip oil companies and refiners. The Partnership’s arch assets accommodate a arrangement of awkward oil terminals that facilitate the busline of abundant awkward oil from Western Canada to key appeal centers beyond North America. The Partnership’s operations accommodate railcar loading and unloading, accumulator and aggregate in on-site tanks, entering and outbound activity connectivity, barter transloading, as able-bodied as added accompanying acumen services. In addition, the Affiliation provides barter with busy railcars and agile casework to facilitate the busline of aqueous hydrocarbons and biofuels by rail.
USDG, which owns the accepted accomplice of USD Partners LP, is affianced in designing, developing, owning, and managing all-embracing multi-modal acumen centers and energy-related basement beyond North America. USDG solutions actualize adjustable bazaar admission for barter in cogent beforehand areas and key appeal centers, including Western Canada, the U.S. Gulf Coast and Mexico. Amid added projects, USDG is currently advancing the development of a arch activity acumen terminal on the Houston Ship Channel with accommodation for abundant catchbasin storage, assorted docks (including barge and deepwater), entering and outbound activity connectivity, as able-bodied as a abuse terminal with assemblage alternation capabilities. For added information, amuse appointment texasdeepwater.com.
Non-GAAP Banking Measures
The Affiliation defines Adapted EBITDA as Net Banknote Provided by Operating Activities adapted for changes in alive basic items, interest, assets taxes, adopted bill transaction assets and losses, and added items which do not affect the basal banknote flows produced by the Partnership’s businesses. Adapted EBITDA is a non-GAAP, added banking admeasurement acclimated by administration and alien users of the Partnership’s banking statements, such as investors and bartering banks, to assess:
The Affiliation defines Distributable Banknote Flow, or DCF, as Adapted EBITDA beneath net banknote paid for interest, assets taxes and aliment basic expenditures. DCF does not reflect changes in alive basic balances. DCF is a non-GAAP, added banking admeasurement acclimated by administration and by alien users of the Partnership’s banking statements, such as investors and bartering banks, to assess:
The Affiliation believes that the presentation of Adapted EBITDA and DCF in this columnist absolution provides advice that enhances an investor’s compassionate of the Partnership’s adeptness to accomplish banknote for acquittal of distributions and added purposes. The GAAP admeasurement best anon commensurable to Adapted EBITDA and DCF is Net Banknote Provided by Operating Activities. Adapted EBITDA and DCF should not be advised alternatives to Net Banknote Provided by Operating Activities or any added admeasurement of clamminess presented in accordance with GAAP. Adapted EBITDA and DCF exclude some, but not all, items that affect Net Banknote Provided by Operating Activities and these measures may adapt amid added companies. As a result, Adapted EBITDA and DCF may not be commensurable to analogously blue-blooded measures of added companies.
Cautionary Note Apropos Forward-Looking Statements
This columnist absolution contains advanced statements aural the acceptation of U.S. federal balance laws, including statements with account to the bulk and timing of the Partnership’s third division 2018 banknote distribution, as able-bodied as statements apropos assembly beforehand in Western Canada, appeal for abuse takeaway accommodation in Western Canada and the Partnership’s adeptness to accommodated that demand, the Partnership’s adeptness to accomplish abiding affairs and arrangement renewals and the adeptness of the Partnership’s Sponsor to commercialize and beforehand amplification accommodation at the Hardisty terminal. Words and phrases such as “is expected,” “is planned,” “believes,” “projects,” and agnate expressions are acclimated to analyze such advanced statements. However, the absence of these words does not beggarly that a account is not forward-looking. Advanced statements apropos to the Affiliation are based on management’s expectations, estimates and projections about the Partnership, its interests and the activity industry in accepted on the date this columnist absolution was issued. These statements are not guarantees of approaching achievement and absorb assertive risks, uncertainties and assumptions that are difficult to predict. Therefore, absolute outcomes and after-effects may adapt materially from what is bidding or anticipation in such advanced statements. Factors that could account absolute after-effects or contest to adapt materially from those declared in the advanced statements accommodate those as set alternating beneath the branch “Risk Factors” in the Partnership’s best contempo Annual Report on Anatomy 10-K and in our consecutive filings with the Balance and Barter Commission. The Affiliation is beneath no obligation (and especially disclaims any such obligation) to amend or adapt its advanced statements, whether as a aftereffect of new information, approaching contest or otherwise.
Distributable banknote breeze
View antecedent adaptation on businesswire.com: https://www.businesswire.com/news/home/20181105005961/en/
SOURCE: USD Partners LP
USD Partners LP Adam Altsuler, (281) 291-3995 Chief Vice President, Chief Banking Officer [email protected] or Jennifer Waller, (832) 991-8383 Associate Director, Banking Reporting and Investor Relations [email protected]
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