USD Partners (USDP) Q2 2024 earnings summary

Executive summary

• Report covers the quarter ended June 30, 2024, with 33,774,427 common units outstanding and no change in control or shell status.

• USD Partners LP operates midstream infrastructure for crude oil and energy products, generating cash flows mainly from take-or-pay contracts with investment grade customers.

• The company completed the sale of its Stroud Terminal in April 2024 for $20.1 million and is required to sell its Hardisty Terminal by December 30, 2024, under a forbearance agreement.

Financial highlights

• Q2 2024 revenues were $8.9 million, down from $19.5 million in Q2 2023; six-month revenues were $18.6 million, down from $40.6 million year-over-year.

• Net loss for Q2 2024 was $28.6 million versus net income of $4.6 million in Q2 2023; six-month net loss was $37.5 million compared to net income of $6.6 million year-over-year.

• Q2 2024 included a $17.4 million non-cash impairment on the Hardisty Terminal and a $3.0 million recovery of prior loss on Stroud Terminal.

• Operating income for Q2 2024 was a loss of $18.6 million, compared to income of $4.4 million in Q2 2023.

• Q2 2024 EPS was $(0.85) versus $0.14 in Q2 2023; six-month EPS was $(1.11) versus $0.20 year-over-year.

Outlook and guidance

• The company expects to complete the sale of the Hardisty Terminal in the second half of 2024 as required by its forbearance agreement.

• Substantial doubt exists about the company's ability to continue as a going concern due to the November 2024 credit agreement maturity and required asset sales.