USD Partners LP (USDP) Reports Q3 Revenues Miss

USD Partners LP (NYSE: USDP) reported Q3 revenue for the quarter came in at $31.34 million versus the consensus estimate of $34.19 million.

• Generated Net Cash Provided by Operating Activities of $16.6 million, Adjusted EBITDA(1) of $15.6 million and Distributable Cash Flow(1) of $13.6 million
• Reported Net Income of $6.2 million
• Declared a quarterly cash distribution of $0.111 per unit ($0.444 per unit on an annualized basis) with almost 4.5x Distributable Cash Flow Coverage

“We are pleased to report a successful third quarter for the Partnership,” said Dan Borgen, the Partnership’s Chief Executive Officer. “We continue to focus on optimizing our operations and increasing the strength of the Partnership’s liquidity position. Since reducing our distribution in the first quarter, the Partnership has paid down $19 million on its Revolver, which is trending higher than our previously-stated guidance to de-lever by approximately $20-$25 million on an annualized basis.”

“Also, we remain excited about our Sponsor’s previously announced diluent recovery unit (“DRU”) project, which is progressing on schedule. Our Sponsor has commenced construction on the project, as well as on the destination terminal in Port Arthur, Texas, and expects that both will be placed into service in the second quarter of 2021. In addition, all material regulatory permits and financing sources have been secured for the DRU and Port Arthur terminal. As a reminder, once the DRU and Port Arthur projects are complete, approximately 32% of the Partnership’s Hardisty terminal’s capacity will be automatically extended under a long-term committed agreement through mid-2031 with a strong investment grade customer. We look forward to keeping the market updated as things continue to develop, and especially with regards to our commercial discussions with other potential producer and refiner customers to secure long-term, take-or-pay agreements at the Partnership’s Hardisty terminal in support of future expansions of capacity at the DRU,” added Mr. Borgen.

For earnings history and earnings-related data on USD Partners LP (USDP) click here.

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