Midstream and energy logistics company USD Partners LP completed a sale of a rail terminal in Casper, Wyoming.
USD Partners (USDP) sold its Casper rail terminal to South 49 Holdings Ltd., a member of the Midstream Energy Partners group, for approximately $33 million in cash.
The deal, which was first announced on March 23, was completed on March 31, USDP said in a news release.
USDP plans to use most of the proceeds from the sale to reduce borrowings under the partnership’s revolving credit facility.
“As we continue to transition our business to lower carbon solutions, including our DRUbit™ by Rail™ network, we are reviewing all assets and their strategic fit in our growth plans,” said Dan Borgen, CEO of USDP.
USDP originally acquired the Casper terminal, a crude oil storage, blending and railcar-loading terminal, in November 2015.
Inbound heavy crude oil from Western Canada is delivered to the Casper terminal through the facility’s pipeline connection with Enbridge’s Express pipeline system, which supplies several different grades of heavy crude to customers, according to USDP regulatory filings.
The Casper facility also includes six storage tanks with 900,000 barrels (bbl) of total capacity and a train car-loading capacity of more than 100,000 bbl/d.
Outbound crude from the Casper terminal is loaded onto railcars and transported to key refining markets by BNSF.
Piper Sandler & Co. acted as financial adviser to USDP in connection with the terminal sale.
Recommended Reading
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
Defeating the ‘Four Horsemen’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production—and keep the cash flowing.
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.