USDP - USD Partners wins new renewable diesel contract at West Colton Terminal

USD Partners (USDP) says it has entered into a five-year terminal services agreement with partnership sponsor U.S. Development Group for the inbound shipment of renewable diesel on rail and the outbound shipment of the product on tank trucks to local consumers.USD Partners says the agreement is supported by a minimum throughput commitment from "an investment-grade rated refining customer" and a performance guaranty from USDG."This opportunity is incremental to our existing ethanol business at West Colton and is projected to generate additional adjusted EBITDA of ~$2M/year at the partnership over the five-year term," CFO Adam Altsuler says.USD Partners trades with a free cash flow yield of nearly 28%, and "could provide a massive 20%-plus distribution yield on current cost one day in the future," Daniel Thurecht writes in a bullish analysis posted on Seeking Alpha.

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USD Partners wins new renewable diesel contract at West Colton Terminal