USD Partners LP (USDP)

[eFinanceMarkets]

USD Partners to expand Oklahoma terminal capacity in $25M deal

USD Partners (USDP -5.9%) agrees to acquire a new crude oil terminal in Stroud, Okla., for $25M to facilitate rail-to-pipeline shipments of crude oil from its Hardisty terminal in western Canada to the Cushing, Okla., crude oil hub.

As part of the deal, USDP enters into a new multi-year, take-or-pay terminalling services agreement with an unnamed company for the use of ~50% of the Stroud terminal’s available capacity through June 2020.

The Stroud terminal includes 104 railcar spots, two 70K-barrel storage tanks, a truck bay and a 17-mile pipeline directly connected to the Cushing hub.