USD Partners' acquisition of the Stroud terminal will help drive additional commercial opportunities.
In its second quarter financial results, the company says it believes the Stroud terminal represents 'one of the most advantaged rail destinations for Western Canadian crude oil given established connectivity from Cushing to multiple refining centers across the US, including underutilised pipelines to major refining centres along the Gulf Coast'.
Through the acquisition, USD has established a rail-to-pipeline solution from Western Canada. It is supported by a new customer and multi-year take-or-pay cash flows.
Dan Borgen, CEO, says: 'Our Stroud terminal acquisition demonstrates the ongoing value of rail takeaway solutions for Western Canada's vast crude oil resource. We believe our origin-to-destination capabilities and rail-to-pipeline solutions will drive additional commercial opportunities at the partnership, particularly as current production normalises and grows, new projects are brought online and available takeaway capacity becomes constrained.'
The 76-acre terminal was bought on June 2.
The company recorded its adjusted EBITDA of $15.1 million and its net income at $8.4 million in its second quarter 2017 results.
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