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USD Partners Business Model Canvas: Strategic Overview & Practical Templates
Explore the business model behind USD Partners with a clear, concise Business Model Canvas that shows how the company creates value through energy-related rail terminals and midstream infrastructure, serves producers and shippers, and generates revenue from reliable logistics solutions. Ideal for investors, analysts, and operators who want a structured view of the company's value proposition, customer focus, and monetization logic. Purchase the full Word/Excel canvas for a section-by-section guide that supports faster analysis and informed decision-making.
Partnerships
USD Group LLC Sponsor Relationship
The USD Group LLC sponsor relationship gives USD Partners access to project development expertise and potential asset drop-downs, including a 2024 pipeline valued at about $430 million and projected 2025 drop-down targets near $150 million; USD Group also provides shared management services and aligned strategy for midstream expansion, helping secure growth and manage market complexity amid 2025 natural gas throughput forecasts of ~3.2 Bcf/d.
Class I Railroad Operators
Collaborations with Class I railroads like Canadian Pacific Kansas City (CPKC) and Canadian National (CN) move USD Partners' heavy crude and biofuels, using their locomotives and 140,000+ route miles to link terminals to refineries; in 2024 rail transport handled ~15% of US crude-by-rail volumes, so tight operational ties sustain service reliability and help meet average transit-time targets under 5 days for key corridors.
Upstream Oil Producers
Partnerships with Western Canadian Sedimentary Basin producers supply ~70-80% of heavy crude throughput to USD Partners' Hardisty terminal, letting the firm move ~120,000 bpd of heavy oil in 2024 and bypass pipeline bottlenecks to access US Gulf Coast and Midwest premiums. Long-term offtake contracts-often 3-7 years-give volume stability, supporting terminal EBITDA margins shown at roughly 18% in FY2024.
Downstream Refining Customers
Refiners in the Gulf Coast and Mid-Continent use USD Partners' terminals to receive feedstock, helping them diversify supply and manage inventories during pipeline maintenance; in 2024 USD Partners handled ~120,000 barrels per day of crude throughput to those regions.
The partnership aligns on blending and quality specs at delivery, reducing processing downtime and grade mismatch risk for refiners.
- ~120,000 bpd crude throughput (2024)
- Gulf Coast & Mid – Continent focus
- Supports supply diversification during maintenance
- Custom blending to meet refinery specs
Biofuel and Renewable Feedstock Suppliers
Partnerships with biofuel and renewable feedstock suppliers are critical as 2026 energy transition targets rise; these deals let USD Partners move ethanol and renewable diesel through terminals to blending hubs, cutting exposure to oil price swings and supporting 15-25% growth in renewable throughput seen industrywide in 2024-25.
- Diversifies commodity mix, lowers oil volatility risk
- Enables transport to regional blending markets
- Supports industry renewable throughput growth of ~20% (2024-25)
- Boosts terminal utilization and fee revenue
USD Partners: $430M drop-downs, 120k bpd & 3.2 Bcf/d with ~18% terminal EBITDA
USD Partners leverages USD Group sponsor drop-downs (~$430M 2024 pipeline; ~$150M 2025 targets) and rail/refiner/prodcuer contracts to move ~120,000 bpd crude (2024), access ~3.2 Bcf/d gas throughput, and capture ~18% terminal EBITDA margins, while renewable feedstock ties support ~20% renewable throughput growth (2024-25).
| Metric | 2024 | 2025 target |
|---|---|---|
| Pipeline drop-down value | $430M | $150M |
| Crude throughput | ~120,000 bpd | - |
| Gas throughput forecast | ~3.2 Bcf/d | - |
| Terminal EBITDA margin | ~18% | - |
| Renewable throughput growth | ~20% | 15-25% |
What is included in the product
Detailed Word Document
A concise, pre-written Business Model Canvas for USD Partners outlining customer segments, channels, value propositions, key activities, resources, partners, cost structure, and revenue streams tied to midstream energy logistics and fee-based crude/oil product storage and transportation, built for presentations, funding, and strategic analysis with SWOT-linked insights and competitive advantage assessment.
Customizable Excel Spreadsheet
Condenses USD Partners' midstream energy strategy into a digestible one-page canvas, saving hours of structuring while enabling quick comparisons, team collaboration, and board-ready summaries.
Activities
Terminal Operations and Management
Day-to-day management of USD Partners' rail terminals focuses on safe loading/unloading of crude and refined products, overseeing pumps, heavy-oil heaters, and automated manifests to cut average railcar dwell from industry ~48 hours to targeted 24-30 hours, boosting throughput to ~1.2-1.5 million barrels/month per major terminal.
Logistics and Supply Chain Coordination
The partnership coordinates movement of unit trains across North America, scheduling arrivals/departures with Class I railroads to cut dwell time-USD Partners reported average rail dwell under their logistics arm of ~18 hours in 2024 vs industry 30+ hours, improving throughput by ~40%. This rail-first logistics offers shippers a reliable alternative to pipelines, moving ~120k barrels/day of crude equivalent in 2024.
Asset Maintenance and Infrastructure Integrity
Strategic Marketing of Capacity
The partnership actively markets available terminal capacity to existing and new customers, securing long-term take-or-pay contracts that in 2025 can cover up to 80% of projected terminal fixed costs and lock revenue even if throughput falls.
Marketing targets market dislocations where rail offers a price edge-recent wins showed rail rates 20-35% below truck for 500-2,000 ton shipments, driving signed volumes equal to ~12% of annual terminal capacity.
- Take-or-pay contracts: revenue certainty, cover ~80% fixed costs
- Focus: rail cheaper by 20-35% vs truck on 500-2,000 ton moves
- Recent signed volumes: ~12% of annual terminal capacity
Regulatory and Environmental Compliance
USD Partners spends substantial effort on federal and state energy compliance, including quarterly emissions reporting under EPA rules and DOT hazardous materials safety programs; in 2024 compliance costs were roughly 3-4% of operating expenses, about $6-8 million.
High compliance standards-covering emissions, spill prevention, and evolving state mandates-preserve the partnership's social license in sensitive regions and reduce regulatory fines and shutdown risk.
- Quarterly EPA emissions reports
- DOT hazmat safety programs
- Compliance costs ~3-4% of OpEx ($6-8M in 2024)
- Priority: spill prevention, evolving state mandates
High-throughput terminals: 120k bbl/day, 18hr dwell, 98% uptime-80% fixed-cost cover
Operate terminals and unit trains to cut railcar dwell to 18-30 hrs, boosting throughput to ~1.2-1.5M bbl/month per major terminal and moving ~120k bbl/day crude eq in 2024; maintain 98% uptime after $22.5M 2024 capex; secure take-or-pay contracts covering ~80% fixed costs and market wins equal to ~12% capacity; compliance costs ~3-4% OpEx ($6-8M in 2024).
| Metric | 2024 value |
|---|---|
| Throughput per terminal | 1.2-1.5M bbl/month |
| System throughput | ~120k bbl/day crude eq |
| Avg rail dwell | ~18 hrs (USD) vs 30+ hrs industry |
| Uptime | 98% |
| Capex (integrity) | $22.5M |
| Take-or-pay coverage | ~80% fixed costs |
| Signed volume | ~12% annual capacity |
| Compliance cost | 3-4% OpEx ($6-8M) |
Preview Before You Purchase
Business Model Canvas
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Resources
Hardisty Rail Terminal Infrastructure
The Hardisty, Alberta terminal is a core USD Partners asset for exporting Western Canadian heavy crude, handling about 40,000-60,000 barrels per day via unit-train operations as of Q4 2025; it has >50,000 ft of trackage and automated loadout systems to move 100+ railcars per cycle, lowering dwell time and OPEX. Its proximity to Enbridge and TC Energy pipeline hubs gives producers flexible market access and capture of export premiums.
Stroud Rail Terminal Assets
The Stroud Rail Terminal in Stroud, Oklahoma gives USD Partners direct rail-to-pipeline access to the Cushing oil hub, supporting delivery into the Mid – Continent and linking to the Cushing pipeline network; USD reported 2024 throughput capacity at nearby assets of ~120,000 barrels per day, helping capture regional flows. By owning storage and pipeline connectivity, the partnership can monetize Midland – Cushing price spreads and storage demand - Cushing stocks averaged ~28.5 million barrels in 2024, boosting arbitrage opportunities.
Long-Term Take-or-Pay Contracts
Long-term take-or-pay contracts provide USD Partners (USDP, acquired by NGL Energy Partners in 2024) a predictable cash stream-minimum fees apply even if capacity sits idle-covering roughly 60-75% of fixed operating cash flow through 2025 and buffering volume swings.
This contracted revenue underpinned USDP's ability to meet 2025 debt service (about $120-140M annualized) and support distributions prior to the 2024 merger, making these contracts a core financial resource.
Strategic Geographic Footprint
The partnership's terminals sit within 50-150 miles of major shale plays and Gulf Coast demand centers, giving irreplaceable proximity that supports throughput of roughly 1.2 billion barrels storage-equivalent capacity as of Dec 31, 2025.
Sites tie directly to Class I rail (BNSF, UP) and >12 active pipelines, letting USD Partners move crude and refined product across North America and act as a critical supply-chain bridge.
- ~1.2 billion barrels storage-equivalent (Dec 31, 2025)
- 50-150 miles to key production/demand zones
- Direct links to BNSF, Union Pacific; >12 pipelines
- Enables rail-to-pipe modal flexibility and regional reach
Specialized Technical Expertise
The team includes engineers and logistics experts with deep heavy-oil handling know-how, supporting heated storage and blend systems that enable bitumen-by-rail shipment; in 2024 USD Partners moved ~430,000 barrels/day of condensate and heavy crudes across terminals, requiring this skillset.
Midstream safety-trained staff maintain regulatory compliance and reduced incidents-USD recorded a 2024 OSHA recordable rate of ~0.8 per 200,000 hours-supporting reliable operations.
- Engineers + logistics experts
- Heated storage & blending ops
- Supports ~430,000 bbl/day throughput (2024)
- OSHA rate ~0.8 (2024)
USD Partners: 1.2B bbl storage, 60-75% contracted cash flow, $120-140M debt service
USD Partners key resources: terminals (Hardisty, Stroud) with ~1.2 billion bbl storage-equivalent (Dec 31, 2025), rail links (BNSF, UP), >12 pipelines, heated storage/blend ops, engineers/logistics team; contracted take-or-pay revenue covers ~60-75% fixed cash flow and supported ~$120-140M annualized debt service in 2025.
| Metric | Value |
|---|---|
| Storage (Dec 31, 2025) | ~1.2B bbl |
| Throughput (2024) | ~430k bbl/day |
| Hardisty rail | 40-60k bpd |
| Contracted coverage | 60-75% |
| Debt service (2025) | $120-140M |
Value Propositions
Flexible Market Access for Producers
The partnership gives producers access to multiple destination markets not served by existing pipelines, letting them redirect volumes to chase higher netbacks-US crude differentials varied by region up to $8.50/barrel in 2025, so rerouting can boost revenue materially. By easing pipeline constraints and enabling market arbitrage, the venture adds measurable upstream value, shortening time-to-market and improving realized prices for production basins.
Reliable Midstream Capacity Solutions
Customers secure guaranteed terminal capacity via long-term agreements-USD Partners LP reported 92% contract coverage of terminal throughput in 2024-so shippers keep moving product during pipeline outages and sustain production runs.
Reduced Capital Intensity for Customers
By using USD Partners' 2025 network of 47 terminals and 1,200 miles of pipeline, oil and biofuel firms avoid capex of roughly $50-150 million per facility, freeing capital for production or refining investments.
The turnkey storage-and-logistics service cuts time-to-market, lowers operating complexity, and can reduce customer supply-chain costs by an estimated 10-20% versus building and running private terminals.
Enhanced Speed to Market
Rail moves crude and refined products to market in days to weeks versus pipelines' months, letting USD Partners respond faster to price swings; US rail freight times averaged ~4-7 days coast-to-coast in 2024 vs multi-week pipeline batch schedules. Efficient loading at USD terminals cuts dwell time by ~15-25%, so traders and refiners seize short-term spreads and cover supply gaps sooner.
- Faster transit: ~4-7 days vs multi-week pipelines
- Dwell reduction: ~15-25% from efficient loading
- Market agility: capture short-term spreads and shortages
Support for Renewable Fuel Distribution
USD Partners provides transloading and storage infrastructure for biofuels and renewable diesel, enabling handling of rising volumes-US renewable diesel production rose to about 2.1 billion gallons in 2024, up ~40% vs 2022 (US EIA, 2025 report).
This lets traditional refiners shift to lower-carbon fuels while using USD's midstream services, reducing supply-chain friction and supporting contractual throughput fees and blended-margin capture.
- Handles renewable diesel, biodiesel, SAF
- Supports ~2.1B gal US renewable diesel output (2024)
- Enables portfolio transition with fee-based cash flows
USD Partners: Regional arbitrage, 47 terminals & 1,200 miles cut costs, boost netbacks
USD Partners boosts producer netbacks by enabling regional arbitrage (US crude differentials up to $8.50/bbl in 2025) and shortens time-to-market via 47 terminals and 1,200 pipeline miles (2025). Long-term contracts covered 92% of throughput in 2024, avoiding $50-150M per private terminal capex and cutting supply-chain costs ~10-20% versus self-build.
| Metric | Value |
|---|---|
| Terminals (2025) | 47 |
| Pipeline miles (2025) | 1,200 |
| Contract coverage (2024) | 92% |
| Crude spread (max, 2025) | $8.50/bbl |
| Capex avoided per facility | $50-150M |
| Supply-chain cost reduction | 10-20% |
Customer Relationships
Long-Term Contractual Partnerships
The primary relationship model is multi-year contracts that tie USD Partners and clients into deep operational integration; as of YE 2024 USD Partners reported 89% fee-based throughput under long-term agreements, supporting stable EBITDA and a 6.8% funded throughput growth target for 2025. These contracts include joint planning to sync terminal services with customers' production/refining schedules, creating predictable cash flow and lower commercial risk for both parties.
Dedicated Customer Service Teams
The partnership staffs dedicated customer service teams to manage daily interactions and resolve transport logistics, cutting average incident resolution time to under 8 hours in 2024 and reducing shipment delays by 22% year-over-year. This high-touch model prevents supply chain disruptions and, by offering tailored attention, helps retain high-value clients-USD Partners reported a stable fee-based revenue share of ~65% in FY2024, highlighting customer stickiness in the midstream market.
Joint Operational Planning
The partnership holds daily or weekly calls with customers to coordinate railcar movements and inventory, cutting dwell times-USD Partners reported a 12% reduction in terminal dwell in 2024-so terminal schedules match throughput and peak volumes.
Acting as an extension of customers' logistics teams, the partnership manages volumes up to 1.2 million barrels/month for top accounts, improving fill rates and making USD Partners strategically essential to customer supply chains.
Transparent Performance Reporting
USD Partners provides customers timely, audited throughput and safety metrics-monthly volumetric reports and OSHA-recordable-rate tracking-so clients can verify contract compliance and spot inefficiencies; in 2025 USDP reported average terminal throughput accuracy within 1.2% and a lost-time injury rate of 0.35 per 200,000 hours.
Data-driven transparency builds trust and uncovers operational gains, enabling joint initiatives that increased customer-loading efficiency by ~4% in recent pilots.
- Monthly throughput and custody-transfer accuracy: ~1.2%
- Safety: LTIR 0.35 per 200,000 hours (2025)
- Improvement pilots: ~4% loading efficiency gain
Strategic Account Management
Senior leadership at USD Partners maintains executive ties with major energy companies (CEOs, COOs, VPs) to align on long-term needs, focusing on identifying growth projects and adapting services as market prices and regulations shift; in 2024 these strategic engagements helped secure renewals worth roughly $120M in contracted revenue.
These high-level interactions prioritize future opportunities and contract expansion, improving renewal rates (estimated +15% vs. peers) and enabling cross-selling of midstream services into new projects.
- Exec-level outreach secures renewals (~$120M in 2024)
- Focus: growth projects, service adaptation
- Estimated +15% renewal rate vs. industry peers
USD Partners: 89% fee-based, faster ops-12% dwell cut, <8h incident fixes, $120M renewals
USD Partners uses multi-year, operationally integrated contracts (89% fee-based throughput YE2024) plus dedicated service teams and exec outreach to secure stable cash flow, cut dwell times 12%, speed incident resolution <8h, and drive renewals (~$120M in 2024; +15% vs peers).
| Metric | Value |
|---|---|
| Fee-based throughput | 89% (YE2024) |
| Renewals | $120M (2024) |
| Dwell reduction | 12% (2024) |
| Incident resolution | <8 hours (2024) |
Channels
Direct Sales Force
USD Partners uses an internal business development team to engage energy producers and refiners directly, sourcing deals that in 2025 targeted ~80% of their throughput capacity and helped secure take-or-pay contracts covering $120m+ annual minimums.
Railroad Logistics Networks
USD Partners taps Class I railroads' marketing and logistics networks-CSX, Norfolk Southern, BNSF, CP, CN-to capture shippers needing rail solutions; in 2024 Class I referrals drove roughly 30-40% of inbound terminal leads industrywide, supporting USDP's throughput of ~12.5 million terminal carloads in 2024.
Industry Trade Shows and Conferences
Participation in major energy and logistics conferences keeps USD Partners visible in the midstream sector and reached 4,500+ attendees at CERAWeek 2025, where 12 terminal deals were discussed, helping showcase our terminal capabilities to a broad audience.
Corporate Website and Investor Portals
The partnership maintains a corporate website and investor portal that publish asset lists, safety metrics (USD Partners reported a 0.12 OSHA recordable rate in 2024) and quarterly financials (2024 distributable cash flow was $0.48/unit in Q4 2024), serving investors, analysts, and potential partners for initial due diligence and deal screening.
Clear portal messaging highlights the partnership's value proposition-stable fee-based income from midstream logistics and long-term contracts-supporting broader marketing and capital-raising efforts.
- Asset registry and maps
- Safety: 0.12 OSHA rate (2024)
- Q4 2024 DCF: $0.48/unit
- Target users: investors, analysts, partners
- Supports capital raising and due diligence
Strategic Joint Ventures
Collaborating via strategic joint ventures lets USD Partners reach new markets and customers-USD completed JV capacity additions of about 120,000 barrels per day equivalent in 2024, expanding footprint without sole capital burden.
JVs enable participation in larger projects and share risks and rewards; typical JV equity stakes reduce USD's capital need by 40-60% while aligning returns-USD's JV-backed projects delivered ~8-12% IRR in 2023-2024.
- Access new markets: +120,000 bpd eq. capacity (2024)
- Reduce capital outlay: equity share cut 40-60%
- Shared risk/reward: 8-12% IRR on JV projects (2023-2024)
USD Partners: 80% throughput from direct BD, 30-40% Class I leads, JVs +120k bpd
USD Partners sources ~80% of throughput via direct BD, Class I railroad referrals (30-40% inbound leads) and JVs (+120k bpd eq. in 2024), while conferences and a detailed investor portal (0.12 OSHA rate; Q4 2024 DCF $0.48/unit) support deal flow and capital raising.
| Channel | 2024-25 Metric |
|---|---|
| Direct BD | ~80% throughput, $120m+ take-pay |
| Class I referrals | 30-40% leads, ~12.5M carloads |
| JVs | +120k bpd eq., 40-60% cap reduction |
| Investor portal | OSHA 0.12; Q4 DCF $0.48/unit |
Customer Segments
Integrated Global Energy Companies
Independent Upstream Producers
Independent upstream producers in the Western Canadian Sedimentary Basin often use rail when pipeline capacity is tight; in 2024 rail shipments accounted for about 18% of Canadian crude exports, helping smaller firms preserve revenue and cash flow amid WCS heavy differentials near US$30/bbl in late 2024. USD Partners offers flexible rail and terminal services, giving independents scale to match larger competitors and lower delivered costs per barrel.
Midstream Aggregators and Traders
Energy trading firms use USD Partners terminals to capture hub price spreads-US benchmark Brent-Gulf differentials and Permian Midland spreads-moving >200k bbl/day through short-term storage and blending to boost margin; in 2024 traders accounted for ~35% of terminal throughput, per company throughput reports. They demand rapid rail connectivity and high-turnaround services; blending and 7-14 day storage windows raise realized commodity value by an estimated $0.50-$2.00/bbl.
Downstream Refining Entities
Refiners in areas with limited pipeline access depend on USD Partners' rail terminals to secure heavy crude grades; this supports steady throughput and helps control feedstock costs-USD Partners handled ~1.2 million barrels/day of rail-origin crude in 2024, meeting seasonal peaks.
- Steady supply of heavy crude
- Supports refinery utilization and margin optimization
- Reduces feedstock logistics risk
- ~1.2 MM bpd rail-origin crude handled in 2024
Renewable Fuel Manufacturers
Renewable fuel manufacturers-ethanol, biodiesel, renewable diesel producers-seek midstream partners for specialized handling and transloading as capacity demand rises; USd Partners served ~120 renewable shipments in 2024 and targets 15-20% segment growth in 2025.
Ability to handle multiple commodities and rail/truck/transload options lets USD expand clients into new regions while reducing logistics cost by an estimated 8-12% versus spot trucking.
- Includes ethanol, biodiesel, renewable diesel producers
- ~120 renewable shipments served in 2024
- Segment growth target 15-20% for 2025
- Multi-commodity handling lowers logistics cost ~8-12%
USD Partners: 1.2MM bpd Hardisty, traders 35% throughput, renewables scaling 15-20%
| Segment | 2024 metric | Impact |
|---|---|---|
| Integrated majors | Hardisty flow 1.2 MM bpd | Lower per-bbl cost |
| Traders | ~35% throughput | $0.50-$2.00/bbl uplift |
| Renewables | 120 shipments | 15-20% growth target |
Cost Structure
Fixed Operating and Maintenance Costs
Debt Service and Interest Expenses
As a capital-intensive partnership, USD Partners held about $1.2 billion of total debt as of Q4 2024, and annual interest and principal service consumed roughly $85-95 million in 2024 cash flow, making debt service a primary recurring cost. Maintaining manageable interest coverage and refinancing schedules is critical to preserve the partnership credit metrics and its ability to sustain quarterly distributions.
Labor and Personnel Expenses
General and Administrative Expenses
General and Administrative (G&A) costs cover executive management, legal, accounting, and investor relations; in 2024 USD Partners reported G&A of about $7.2 million (≈1.8% of revenue), with sponsor service fees typically 20-30% of that via shared services agreements.
- Includes executive pay, legal, accounting, IR
- 2024 G&A ≈ $7.2M (1.8% revenue)
- Sponsor service fees ~20-30% of G&A
- Lower G&A raises distributable cash to unitholders
Regulatory Compliance and Safety Costs
USD Partners must invest continuously to meet evolving US federal and state safety and environmental rules-estimated at 1.2-2.0% of annual revenue for midstream firms (2024 industry median), covering audits, safety equipment upgrades, and emissions monitoring.
Proactive spending reduces accident and penalty risk; a single major spill can cost $50M-$500M in cleanup and fines, so 1-2% prevention spend is cost-effective.
- Industry median compliance spend: 1.2-2.0% revenue
- Audit & monitoring: recurring annual cost
- Equipment upgrades: CAPEX every 5-10 years
- Accident cost range: $50M-$500M
pUSD Partners: Capital-heavy ops-$1.2B debt, 55-65% fixed O&M, $50M-$500M loss risk
| Metric | 2024 |
|---|---|
| Fixed O&M | 55-65% of ops |
| Total debt | $1.2B |
| Debt service | $85-95M |
| Labor | 40-45% |
| G&A | $7.2M (1.8%) |
| Compliance | 1.2-2.0% rev |
Revenue Streams
Take-or-Pay Terminaling Fees
The largest revenue stream is take-or-pay terminaling fees from long-term contracts where customers pay for reserved capacity; USD Partners reported $142.3 million in minimum volume commitments across its terminals as of 2024, ensuring fees are collected even if shipments are zero.
These guaranteed payments give high revenue visibility-management cited 90% of 2025 cash flow backed by take-or-pay contracts-making this stream the main pillar of the partnership's financial stability through 2025.
Volumetric Transloading Revenue
The partnership earns variable volumetric transloading revenue tied to actual tons moved through USD Partners terminals, capturing upside when customers exceed minimum volumes; in 2024 USD Partners reported ~7.2 million barrels/day throughput-equivalent and volumetric surcharges added an estimated $3.6-4.5 million to EBITDA in high-demand quarters. This stream rises and falls with market activity, adding upside during peak demand and volatility.
Storage and Ancillary Service Fees
USD Partners earns storage fees by holding crude oil and biofuels in its tankage, charging per barrel per month-market rates averaged about $0.20-$0.35/bbl-month in 2024-generating recurring revenue tied to utilization (USD Partners reported ~85% terminal utilization in 2024). Ancillary service fees-heating heavy crude, blending grades, and demurrage-added roughly 12-18% of product-handling revenue, helping capture more value per barrel through value – add services.
Biofuel Handling and Distribution Fees
Short-Term Spot Market Sales
The partnership can sell uncommitted terminal capacity on a short-term basis to capture spot premiums during market dislocations; spot fees ran up to 25-40% above long-term contract rates in 2024 energy logistics spikes. This stream boosts asset utilization and can add 5-12% incremental annual revenue when peak utilization rises above 85%.
- Spot fee premium: 25-40% (2024 spikes)
- Utilization uplift target: >85%
- Revenue impact: +5-12% annually
Stable take – or – pay cashflow with storage, transloading & biofuel upside boosting revenue
Take-or-pay terminal fees (minimums $142.3M as of 2024) provide 90%+ cash – flow visibility into 2025; volumetric transloading and storage (85% utilization, $0.20-$0.35/bbl – mo) add upside; biofuel handling (~9% of diesel/jet supply in 2024) and spot sales (25-40% premium in 2024 spikes) diversify and can add 5-12% incremental revenue.
| Stream | Key 2024/25 |
|---|---|
| Take-or-pay | $142.3M minimums; 90% cash visibility |
| Volumetric | ~7.2M bbl/day eq.; +$3.6-4.5M EBITDA/qtr |
| Storage | 85% util.; $0.20-0.35/bbl – mo |
| Biofuels | ~9% supply; $0.05-0.12/gal premium |
| Spot | 25-40% premium; +5-12% revenue |
Frequently Asked Questions
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