USD Partners LP (USDP) Reports Q4 Revenues Miss

USD Partners LP (NYSE: USDP) reported Q4 revenue for the quarter came in at $31.06 million versus the consensus estimate of $34.19 million.

• Generated Net Cash Provided by Operating Activities of $12.1 million, Adjusted EBITDA(1) of $14.9 million and Distributable Cash Flow(1) of $12.9 million
• Reported Net Income of $6.5 million
• Declared a quarterly cash distribution of $0.111 per unit ($0.444 per unit on an annualized basis) with almost 4.3x Distributable Cash Flow Coverage(2)

“We are pleased to report another successful year for the Partnership,” said Dan Borgen, the Partnership’s Chief Executive Officer. “Despite all of the challenges that occurred during 2020, the Partnership’s financial performance remained steady, and our terminals performed safely and reliably throughout the year. We attribute this to our strong operations team, our investment grade customers and our compelling contract profile, which is underpinned by long-term, take-or-pay agreements.”

“We continue to be very excited about our Sponsor’s previously announced diluent recovery unit (“DRU”) project and destination terminal in Port Arthur, Texas (“PAT”) and look forward to announcing their in-service dates late in the second quarter or early in the third quarter of this year. As previously mentioned, the Partnership will benefit from the completion of the DRU and PAT projects, as 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 remain focused on 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. We look forward to keeping the market updated as this project continues to develop,” added Mr. Borgen.

Adam Altsuler, the Partnership’s Chief Financial Officer, added, “In addition, our efforts to strengthen our balance sheet continue to produce results. We have paid down more than $30 million of revolver borrowings since the first quarter of 2020, which is above our previously stated guidance of approximately $20-$25 million on an annualized basis. Notably, our leverage ratio(3) is currently 3.5x and trending lower, and our Distributable Cash Flow yield(4) over the last twelve months continues to be strong, at greater than 30% based on our current unit price.”

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

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