November 18, 2015 [OPIS] - USD Partners said on Tuesday that it has completed its previously announced acquisition of a crude oil terminal in Casper, Wyo., for total consideration of $225 million, subject to post-closing adjustments and adjustments for working capital.
The terminal’s assets include a unit train-capable rail-loading terminal, 900,000 bbl of tank capacity for storage and blending operations, and a pipeline connection from Spectra Energy Partners LP’s Express crude oil pipeline, currently the primary source of crude oil delivered to the terminal.
The Casper terminal is supported by take-or-pay contracts with primarily investment grade refiners and is expected to contribute approximately $26 million of adjusted EBITDA in 2016 based on minimum contracted payments.
The transaction is expected to be immediately accretive to distributable cash flow per unit.
USD Partners is a master limited partnership formed by US Development Group LLC to acquire, develop and operate energy-related rail terminals and other complementary midstream infrastructure assets and businesses.
The partnership’s other assets consist primarily of a crude-by-rail origination terminal in Hardisty, Alberta, Canada, with capacity to load up to two 120-railcar unit trains per day and two unit train-capable ethanol destination rail terminals in San Antonio, Texas, and West Colton, Calif., with a combined capacity of approximately 33,000 b/d.
In addition, the partnership provides railcar services through the management of a railcar fleet that is committed to customers on a long-term basis.
