USD Partners LP (NYSE: USDP) (the “Partnership”) announced today that
the Board of Directors of its general partner declared a quarterly cash
distribution of $0.3150 per unit for the second quarter of 2016 ($1.26
per unit on an annualized basis), representing an increase of $0.0075
per unit or 2.4% over the prior quarter. The distribution is payable on
August 12, 2016, to unitholders of record on August 8, 2016.
The distribution is consistent with management’s previously announced
intentions to recommend a distribution increase of at least $0.0075 per
unit each quarter through the fourth quarter of 2016. The proposed
increases would deliver 10% distribution growth to unitholders in 2016
(as calculated based on the fourth quarter of 2016 relative to the
fourth quarter of 2015), while maintaining significant distribution
coverage.
Second Quarter 2016 Earnings Release Date and Conference Call
Information
The Partnership plans to report second quarter 2016 financial and
operating results after market close on Wednesday, August 3, 2016. The
Partnership will host a conference call and webcast regarding second
quarter 2016 results at 11:00 a.m. Eastern Time (10:00 a.m. Central
Time) on Thursday, August 4, 2016.
To listen live over the Internet, participants are advised to log on to
the Partnership’s website at www.usdpartners.com
and select the “Events & Presentations” sub-tab under the “Investors”
tab. To join via telephone, participants may dial (877) 266-7551
domestically or +1 (339) 368-5209 internationally, conference ID
49974421. Participants are advised to dial in at least five minutes
prior to the call.
An audio replay of the conference call will be available for thirty days
by dialing (800) 585-8367 domestically or +1 (404) 537-3406
internationally, conference ID 49974421. In addition, a replay of the
audio webcast will be available by accessing the Partnership's website
after the call is concluded.
About USD Partners LP
The Partnership is a fee-based, growth-oriented master limited
partnership formed in 2014 by US Development Group LLC to acquire,
develop and operate energy-related logistics assets, including rail
terminals and other high-quality and complementary midstream
infrastructure. The Partnership’s assets consist primarily of: (i) a
crude oil origination terminal in Hardisty, Alberta, Canada, with
capacity to load up to two 120-railcar unit trains per day, (ii) a crude
oil terminal in Casper, Wyoming, with unit train-capable railcar loading
capacity in excess of 100,000 barrels per day and six customer-dedicated
storage tanks with 900,000 barrels of total capacity and (iii) two unit
train-capable ethanol destination rail terminals in San Antonio, Texas,
and West Colton, California. In addition, the Partnership provides
railcar services through the management of a railcar fleet that is
committed to customers on a long-term basis.
Qualified Notice to Nominees
This release serves as qualified notice to nominees as provided for
under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note
that we believe that 100 percent of the Partnership’s distributions to
foreign investors are attributable to income that is effectively
connected with a United States trade or business. Accordingly, all of
the Partnership’s distributions to foreign investors are subject to
federal income tax withholding at the highest effective tax rate for
individuals or corporations, as applicable. Nominees, and not the
Partnership, are treated as withholding agents responsible for
withholding distributions received by them on behalf of foreign
investors.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements with
respect to the amount and timing of the Partnership’s second quarter
2016 cash distribution, and the amount of any distribution increases
that management may recommend or that the Board of Directors of the
general partner may approve for any future period. Words and phrases
such as “is expected,” “is planned,” “believes,” “projects,” and similar
expressions are used to identify such forward-looking statements.
However, the absence of these words does not mean that a statement is
not forward-looking. Forward-looking statements relating to the
Partnership are based on management’s expectations, estimates and
projections about the Partnership, its interests and the energy industry
in general on the date this press release was issued. These statements
are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict. Therefore,
actual outcomes and results may differ materially from what is expressed
or forecast in such forward-looking statements. Factors that could cause
actual results or events to differ materially from those described in
the forward-looking statements include those as set forth under the
heading “Risk Factors” in the Partnership’s most recent Annual Report on
Form 10-K and in our subsequent filings with the Securities and Exchange
Commission. The Partnership is under no obligation (and expressly
disclaims any such obligation) to update or alter its forward-looking
statements, whether as a result of new information, future events or
otherwise.
