USD Partners LP Announces Third Quarter 2016 Results

USD Partners LP (NYSE: USDP) (the "Partnership") announced today its operating and financial results for the three and nine months ended September 30, 2016. Highlights with respect to the third quarter of 2016 include the following:
  • Reported Net Income of $12.8 million
  • Generated Net Cash Provided by Operating Activities of $14.5 million, Adjusted EBITDA of $16.2 million and Distributable Cash Flow of $14.4 million
  • Increased quarterly cash distribution to $0.3225 per unit ($1.29 per unit on an annualized basis)
  • Ended quarter with $180.5 million of available liquidity

"We are pleased to report another strong quarter at USD Partners and to announce our sixth consecutive distribution increase while delivering 1.9x distribution coverage," said Dan Borgen, the Partnership's Chief Executive Officer. "We are well positioned in some of the most strategic areas for new development across North America, including Western Canada and the Gulf Coast, and continue working closely with our customers to provide flexible and timely industry solutions."

Third Quarter 2016 Operational and Financial Results

Substantially all of the Partnership's cash flows are generated from multi-year, take-or-pay terminal service agreements related to the Hardisty and Casper terminals, which include minimum monthly commitment fees. The Partnership's customers include major integrated oil companies, refiners and marketers, the majority of which are investment grade rated.

The Partnership achieved substantial growth during the third quarter of 2016 relative to the third quarter of 2015. Specifically, Net Income and Net Cash Provided by Operating Activities increased by 103% and 32%, respectively, while Adjusted EBITDA and Distributable Cash Flow increased by 66% and 111%, respectively. This growth was primarily attributable to the Partnership's acquisition of the Casper terminal in November 2015 and was partially offset by higher interest expense on additional borrowings used to fund the acquisition, as well as additional operating costs associated with managing and operating the terminal.

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