USD Partners' Hardisty Rail Terminal in Alberta, Canada, loads different grades of Canadian crude oil from the Western Canada Sedimentary Basin onto rail cars. (Source: Shutterstock)
Houston-based USD Partners has reached a forbearance agreement with its lenders and administrative agent requiring the sale of the company’s Hardisty Rail Terminal in Alberta, Canada, before the end of the year.
USD announced the agreement through a press release on June 25. A forbearance agreement is a temporary postponement of loan payments granted by a lender instead of forcing the borrower into foreclosure or default. With creditors' approval, the facility's sale deadline may be extended into January 2025.
According to the release, USD has also agreed to an operations budget approved by the lenders’ administrative agent.
The Hardisty is one of three assets USD lists on the company’s website, along with the Stroud Terminal in Oklahoma and a railcar fleet.
In operation since 2014, the Hardisty is an origination terminal where different grades of Canadian crude oil from the Western Canada Sedimentary Basin are loaded onto rail cars.
The terminal is financed by a long-term take-or-pay contract to load diluent recovery unit (DRU) volumes.
Recommended Reading
FTC Oks Chevron-Hess Deal, Bans John Hess from Board
2024-09-30 - Federal regulators signed off on a blockbuster tie-up between Chevron and Hess Corp. but banned CEO John Hess from sitting on the Chevron board.
Chevron Sells Canadian Oil Sands, Duvernay Shale Assets for $6.5B
2024-10-07 - Chevron said the divestitures are part of its plans to sell $10 billion to $15 billion worth of assets by 2028 following the company’s acquisition of Hess Corp. for $53 billion.
Carnelian Backs Williston E&P Zavanna as Bakken M&A Heats Up
2024-09-24 - Carnelian Energy Capital Management LP invested in Zavanna LLC, a longtime producer in the North Dakota Bakken and Three Forks plays.
As Permian Targets Grow Scarce, 3Q M&A Drops to $12B—Enverus
2024-10-16 - Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
Chevron’s Texas Haynesville May Fetch $1B from Tokyo Gas—Report
2024-10-08 - Chevron holds more than 70,000 net acres in Panola County, Texas, but had only five Haynesville wells on the acreage at year-end 2023.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.