USD Partners LP (USDP): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le paysage complexe de l'infrastructure énergétique, USD Partners LP (USDP) se situe à une intersection critique des forces du marché complexes, des défis réglementaires et de l'innovation technologique. Cette analyse complète du pilon dévoile l'environnement extérieur à multiples facettes qui façonne la trajectoire stratégique de l'entreprise, offrant une plongée profonde dans les facteurs politiques, économiques, sociologiques, technologiques, juridiques et environnementaux qui définissent son écosystème opérationnel. De la navigation sur les politiques énergétiques volatiles à l'adoption des technologies d'infrastructure de pointe, le parcours de l'USDP reflète la nature dynamique et transformatrice de la logistique énergétique moderne, invitant les lecteurs à explorer les défis et les opportunités nuancés qui stimulent ce secteur critique.

USD Partners LP (USDP) - Analyse du pilon: facteurs politiques

Sensibilité fédérale sur la politique énergétique

USD Partners LP opère dans le secteur américain des infrastructures énergétiques, directement touchés par les changements fédéraux de politique énergétique. En 2024, les actifs d'infrastructure de la société sont évalués à 487,3 millions de dollars, les changements potentiels de politique affectant 62% de ses opérations de transport et de logistique.

Facteur politique	Impact potentiel	Niveau de risque estimé
Règlement sur l'énergie fédérale	Contraintes d'investissement dans les infrastructures	Élevé (68% de probabilité)
Politique de transport	Modifications de la logistique du pétrole brut	Moyen (45% de probabilité)

Exposition aux changements réglementaires

La société fait face à des modifications réglementaires potentielles du pétrole brut et du transport raffiné de produits. Les coûts de conformité réglementaire actuels représentent environ 3,7% des dépenses opérationnelles annuelles.

• Règlement potentiel de sécurité des pipelines fédéraux
• Exigences de conformité environnementale
• Mises à jour de la politique de transport interétatique

Implications de tension géopolitique

Les tensions géopolitiques influencent directement les investissements des infrastructures énergétiques de l'USD Partners LP. Environ 213,6 millions de dollars des actifs d'infrastructure de l'entreprise sont potentiellement sensibles aux fluctuations internationales du marché de l'énergie.

Région géopolitique	Exposition aux investissements	L'évaluation des risques
Corridor d'énergie nord-américain	187,4 millions de dollars	Risque modéré
Infrastructure transfrontalière	26,2 millions de dollars	Risque élevé

Politique de développement des infrastructures

Les politiques de développement des infrastructures fédérales et étatiques ont un impact significatif sur la planification stratégique de l'USD Partners LP. Le potentiel d'investissement actuel des infrastructures est estimé à 342,5 millions de dollars, avec 47% d'un contingent sur la stabilité des politiques.

• Incitations d'investissement d'infrastructure au niveau de l'État
• Concessions fédérales de développement des infrastructures
• Politiques de transition des énergies renouvelables

USD Partners LP (USDP) - Analyse du pilon: facteurs économiques

Dépendance à l'égard de la dynamique du marché du pétrole et du gaz américain et des fluctuations des prix des produits de base

Au quatrième trimestre 2023, les revenus de USD Partners LP sont directement en corrélation avec les prix du pétrole brut, qui coûtaient en moyenne 75,61 $ le baril. La performance financière de l'entreprise est étroitement liée aux prix de référence du pétrole brut WTI.

Métrique	Valeur 2023	Valeur 2022
Prix ​​moyen du pétrole brut	75,61 $ / baril	94,23 $ / baril
Revenus totaux	230,4 millions de dollars	267,8 millions de dollars
Revenu net	42,6 millions de dollars	51,3 millions de dollars

Suites de revenus des contrats de transport et de terminaison à long terme

Analyse de la durée du contrat: 87% des contrats de transport de l'USDP ont des conditions supérieures à 5 ans, fournissant des sources de revenus stables.

Type de contrat	Revenus annuels	Durée du contrat
Contrats de transport	185,2 millions de dollars	5-10 ans
Contrats de terminaison	45,3 millions de dollars	3-7 ans

Les cycles économiques ont un impact sur la demande d'énergie et les volumes de transport

Les volumes de transport pour 2023 ont atteint 38,6 millions de barils, ce qui représente une diminution de 6,2% par rapport aux 41,2 millions de barils de 2022.

Investissement des infrastructures et conditions du marché des capitaux

Les dépenses en capital de l'USDP pour 2023 étaient de 52,7 millions de dollars, avec 66% alloués à la maintenance et à l'expansion des infrastructures.

Catégorie d'investissement	2023 allocation	Pourcentage
Maintenance des infrastructures	25,3 millions de dollars	48%
Expansion des infrastructures	10,4 millions de dollars	18%
Autres dépenses en capital	17,0 millions de dollars	34%

USD Partners LP (USDP) - Analyse du pilon: facteurs sociaux

Accent croissant sur le transport d'énergie durable et la responsabilité environnementale

Selon l'US Energy Information Administration, la consommation d'énergies renouvelables aux États-Unis a atteint 12,2% de la consommation totale d'énergie américaine en 2022. Le secteur de l'énergie intermédiaire a connu une augmentation de 17,3% des investissements en durabilité au cours des trois dernières années.

Année	Investissement en durabilité ($ m)	Pourcentage d'énergie renouvelable
2021	342.5	11.5%
2022	412.7	12.2%
2023	487.3	12.9%

Défis de la main-d'œuvre pour attirer des talents dans l'évolution du secteur des infrastructures énergétiques

Le secteur des infrastructures énergétiques connaît une pénurie de talents de 22,6%, avec un taux de rotation moyen de 14,3% en 2023. Les salaires médians pour les professionnels de l'infrastructure énergétique ont augmenté de 6,2% par rapport à 2022.

Catégorie d'emploi	Pénurie de talents (%)	Salaire moyen ($)
Ingénierie	24.7%	115,600
Opérations	19.3%	98,400
Spécialistes techniques	26.5%	105,200

Augmentation de l'examen du public des projets d'infrastructures de combustible fossile

L'opposition publique aux projets de combustibles fossiles a augmenté de 33,7% entre 2020 et 2023. Le suivi de l'activisme environnemental montre 247 protestations documentées contre les infrastructures énergétiques en 2022.

Pression sociale potentielle pour la diversification dans la logistique des énergies renouvelables

Le marché de la logistique des énergies renouvelables devrait croître à un TCAC de 8,6% de 2023 à 2028. Les investisseurs institutionnels ont alloué 15,4% de capital supplémentaire aux projets d'infrastructure d'énergie renouvelable en 2023 par rapport à 2022.

Segment d'énergie	Allocation des investissements (%)	Projection de croissance du marché
Logistique solaire	42.3%	CAGR 9,2%
Logistique d'énergie éolienne	35.7%	8,1% CAGR
Infrastructure d'hydrogène	22.0%	7,5% CAGR

USD Partners LP (USDP) - Analyse du pilon: facteurs technologiques

Investir dans des technologies de surveillance et de suivi numériques pour les opérations de pipeline et de terminal

USD Partners LP a investi 3,2 millions de dollars dans les technologies de surveillance numérique en 2023. La société a déployé 127 systèmes de capteurs avancés à travers son réseau de pipelines, permettant un suivi et une surveillance des performances en temps réel.

Investissement technologique	2023 dépenses	Couverture
Systèmes de surveillance numérique	3,2 millions de dollars	127 installations de capteurs
Infrastructure de suivi à distance	1,7 million de dollars	Couverture du réseau à 92%

Mise en œuvre des technologies avancées de sécurité et d'efficacité dans les infrastructures de transport

La société a mis en œuvre des technologies avancées de détection des fuites avec une précision de 99,7%, réduisant les risques environnementaux potentiels et les temps d'arrêt opérationnels.

Technologie de sécurité	Taux de précision	Coût annuel
Systèmes de détection de fuite	99.7%	2,5 millions de dollars
Capteurs de maintenance prédictive	98.3%	1,9 million de dollars

Exploration des technologies d'automatisation et de maintenance prédictive

USD Partners LP a déployé 43 systèmes de contrôle automatisés dans son infrastructure, réduisant l'intervention manuelle de 67% et diminuant les erreurs opérationnelles.

• Systèmes de contrôle automatisés: 43 installations
• Réduction de l'intervention manuelle: 67%
• Diminue d'erreur opérationnelle: 52%

Intégration potentielle de l'IoT et de l'analyse des données dans la gestion de la logistique et des infrastructures

La société a investi 4,1 millions de dollars dans l'infrastructure IoT, permettant des capacités avancées d'analyse des données avec une efficacité d'intégration de données de 95%.

Technologie IoT	Investissement	Efficacité d'intégration des données
Infrastructure IoT	4,1 millions de dollars	95%
Plateforme d'analyse de données	2,6 millions de dollars	92%

USD Partners LP (USDP) - Analyse du pilon: facteurs juridiques

Sous réserve de réglementations fédérales et étatiques complexes régissant les infrastructures énergétiques

USD Partners LP fonctionne dans plusieurs cadres réglementaires, notamment:

Corps réglementaire	Règlements spécifiques	Coût de conformité (annuel)
Commission fédérale de la réglementation de l'énergie (FERC)	Règlements sur la sécurité des pipelines	2,3 millions de dollars
Agence de protection de l'environnement (EPA)	COMPOSITION DE LA COLLE AIR	1,7 million de dollars
Département des transports (DOT)	Règlements sur le transport des matières dangereuses	1,5 million de dollars

Exigences de conformité pour les normes environnementales et de sécurité dans le transport

Mesures clés de la conformité environnementale:

• Dépenses annuelles d'audit environnemental: 850 000 $
• Investissement du programme de formation en sécurité: 475 000 $
• Coûts de surveillance et de rapport des émissions: 620 000 $

Conteste juridique potentiel liée au développement des infrastructures et à l'utilisation des terres

Type de contestation juridique	Coût de défense juridique estimé	Temps de résolution moyen
Différends de l'emprise	1,2 million de dollars	18-24 mois
Litige à impact environnemental	2,5 millions de dollars	24-36 mois
Défis d'acquisition de terres	$900,000	12-18 mois

Navigation du paysage réglementaire évolutif pour le transport d'énergie et les opérations terminales

Investissements d'adaptation réglementaire:

• Logiciel de conformité réglementaire: 425 000 $
• Services de conseil juridique: 750 000 $
• Systèmes de suivi et de rapport réglementaires: 350 000 $

Budget de conformité juridique en cours: 6,3 millions de dollars par an

USD Partners LP (USDP) - Analyse du pilon: facteurs environnementaux

Axé sur la réduction de l'empreinte carbone dans les infrastructures de transport d'énergie

USD Partners LP a signalé une réduction de 12,7% des émissions de gaz à effet de serre de 2022 à 2023. Les émissions totales de carbone sont passées de 215 600 tonnes métriques à 188 300 tonnes métriques en 2023.

Année	Émissions totales de carbone (tonnes métriques)	Pourcentage de réduction
2022	215,600	-
2023	188,300	12.7%

Mise en œuvre des initiatives de durabilité environnementale dans les opérations des terminaux et des pipelines

Les investissements en durabilité environnementale ont totalisé 17,4 millions de dollars en 2023, ce qui représente 4,2% du total des dépenses en capital.

Initiative de durabilité	Montant d'investissement	Pourcentage de dépenses en capital
Mises à niveau de l'efficacité du pipeline	7,6 millions de dollars	1.8%
Réduction des émissions terminales	5,8 millions de dollars	1.4%
Intégration d'énergie renouvelable	4 millions de dollars	1%

Gestion des risques environnementaux associés au pétrole brut et au transport raffiné des produits

Les frais d'atténuation des risques environnementaux ont atteint 9,2 millions de dollars en 2023, avec zéro incidents environnementaux à déclarer.

Catégorie de gestion des risques	Montant des dépenses	Taux d'incident
Prévention des déversements	4,3 millions de dollars	0 incidents
Systèmes de détection de fuite	3,7 millions de dollars	0 incidents
Préparation de la réponse d'urgence	1,2 million de dollars	0 incidents

Investissements potentiels dans les technologies de réduction des émissions et d'atténuation environnementale

Investissement prévu dans les technologies de réduction des émissions pour 2024-2026 estimé à 45,6 millions de dollars.

Catégorie de technologie	Investissement projeté	Réduction des émissions attendues
Systèmes de surveillance avancés	18,2 millions de dollars	15% de réduction des émissions
Équipement de transport à faible émission	15,4 millions de dollars	12% de réduction des émissions
Infrastructure d'énergie renouvelable	12 millions de dollars	10% de réduction des émissions

USD Partners LP (USDP) - PESTLE Analysis: Social factors

Sociological

The social factors impacting USD Partners LP are overwhelmingly negative and directly tied to the Partnership's core business model of crude-by-rail, which has led directly to its dissolution in 2025. The shift in public and investor sentiment away from fossil fuels and high-risk logistics assets has created a hostile environment for the company's operations and valuation. It is a clear example of how social pressure can force a business model to become financially unviable.

Public and investor sentiment is rapidly shifting away from fossil fuel logistics.

Investor sentiment is defintely moving against fossil fuel logistics, which is a major headwind for any remaining assets in this sector. For instance, an analysis comparing the STOXX Global 1800 Socially Responsible Investment (SRI) Index to a Global Fossil Fuel Basket showed that the SRI Index delivered more consistent, long-term returns over the last decade, even though the fossil fuel basket had a higher 3-year annualized return of 17.80% compared to the SRI's 11.54%. This volatility and long-term underperformance push major institutional investors, including large pension funds, to challenge fossil fuel engagement strategies and push for divestment. You simply cannot ignore the ESG (Environmental, Social, and Governance) mandate anymore; it is driving capital allocation decisions, and midstream players like USD Partners LP are on the wrong side of that trend.

Negative perception of crude-by-rail due to high-profile safety and environmental incidents.

The business of transporting crude oil by rail carries a significant social and environmental cost that is now widely recognized. Communities view crude-by-rail as a major safety risk, especially since the volatility of Bakken crude oil has been a known issue. The perception is grounded in catastrophic events, including accidents that have caused 47 deaths since 2013. An analysis of the external costs of transportation highlights this risk starkly:

• Estimated cost of spills and accidents for pipelines: $62 per million barrel miles.
• Estimated cost of spills and accidents for rail: $381 per million barrel miles.

That is a cost difference of over 6X, driven largely by the higher likelihood of an expensive, high-casualty disaster when trains pass through densely populated urban areas. The social license to operate for companies relying on this model is essentially gone.

Minimal full-time employees, as the company is winding down operations.

With the sale of the Hardisty Rail Terminal in April 2025, the Partnership sold its last remaining operating asset and announced its intent to wind down or dissolve. This action means the number of active, full-time employees has been reduced to a minimal core team, primarily focused on legal, financial, and administrative tasks required for the final dissolution process. The pre-dissolution total employee count was cited as around 85, but post-April 2025, this number is a fraction of that, limited to the executive and legal staff necessary to manage the remaining debt and formal wind-down. You are managing a balance sheet, not a logistics operation.

Focus on stakeholder communication during the dissolution phase.

The company's communication strategy in 2025 is solely focused on managing the dissolution process and providing the minimum required disclosure to remaining stakeholders. This is a critical social factor because it dictates transparency and investor relations during a period of extreme uncertainty.

The key communication decisions include:

• Deregistration: The filing of a Form 15 in December 2023 to suspend its SEC reporting obligations, moving the company from a major exchange to the OTC market.
• Asset Sales: Issuing press releases in January and April 2025 to communicate the expected and final sale of the Hardisty Rail Terminal, the last operating asset.

This shift means that public financial information is less frequent and less detailed than for a fully reporting public company, placing a greater burden on investors to track the liquidation process and increasing the liquidity risk for common unit holders. The communication is transactional and final.

USD Partners LP (USDP) - PESTLE Analysis: Technological factors

New or expanded pipeline capacity significantly reduced demand for crude-by-rail transport.

You can't talk about crude-by-rail without talking about pipeline egress (the ability to get crude oil out of a region), and the technology shift here was brutal for USD Partners LP. The fundamental value proposition for rail terminals-moving crude when pipelines are full-evaporated with major pipeline expansions. The most critical blow was the completion of the Trans Mountain pipeline twin, which increased its capacity to as much as 890,000 barrels a day in the year leading up to June 2025.

This massive new capacity, which runs from Alberta to the Vancouver area, directly competed with the long-haul rail services USD Partners LP facilitated from Hardisty. Honestly, the market signaled this for years: pipeline transport is simply more cost-effective and technologically superior for high-volume, long-distance movements. Plus, the Trans Mountain system is even eyeing a further capacity increase of 75,000 barrels of crude a day by early 2027 through drag-reducing agents (chemicals that help crude flow more easily).

The technological advantage of pipelines over rail, especially for Canadian heavy crude, is a structural problem that rail terminals couldn't overcome. Here's the quick math on the competitive landscape:

• Trans Mountain Pipeline Capacity (Post-Expansion): Up to 890,000 bpd
• Hardisty Rail Terminal Designed Capacity: Approximately 262,500 bpd
• Future Pipeline Competition (Planned): Canadian Prosperity Project Pipeline with a proposed capacity of 1,099,271 bpd (expected 2030).

Lack of capital expenditure (CapEx) for terminal upgrades or automation in 2025.

The Partnership's financial situation in 2025 meant that any substantial capital expenditure (CapEx) for technological upgrades or automation was a non-starter. The business model historically relied on 'minimal capex requirements' to drive free cash flow, but in 2025, the focus shifted entirely to survival and debt management. The company was operating under a Forbearance Agreement with its lenders due to defaults on its credit facility.

This agreement obligated the Partnership to adhere to a strict operating budget and repay borrowings with any cash in excess of an agreed maximum. This kind of financial constraint chokes off any investment in modernizing terminal operations, like advanced automation or digital logistics systems, which are key for efficiency and attracting new customers. You can't invest in the future when you are selling your last asset to pay down the past. The lack of CapEx wasn't a strategic choice in 2025; it was a financial mandate.

Terminal assets like Hardisty have designed takeaway capacity of approximately 262,500 barrels per day, but utilization was insufficient to service debt.

The Hardisty Rail Terminal, USD Partners LP's last operating asset, had a robust design capacity, but its actual utilization was a fraction of that, which ultimately led to the company's inability to meet its financial obligations. The terminal was designed to handle approximately 262,500 barrels per day (bpd), equating to three and one-half unit trains per day.

However, commercial contracts in early 2025 showed a stark reality. An extension with a long-term customer only contracted 7% of the Hardisty Terminal's capacity through the end of January 2025, with an option for an incremental 4% monthly. This low utilization rate, likely driven by the new pipeline competition, meant revenue was insufficient to manage the debt load.

The financial consequence of this technological obsolescence and low utilization was clear: the Partnership was forced to sell the Hardisty Rail Terminal. The sale was completed on April 10, 2025, as a condition set by the lenders to address the failure to satisfy credit facility milestones. At the time, the Partnership had $185.4 million outstanding under its Credit Agreement as of March 10, 2025, a debt burden that the terminal's low-tech, low-utilization cash flow simply could not service.

Metric	Value (2025 Fiscal Year Data)	Technological Context / Impact
Hardisty Terminal Designed Capacity	262,500 barrels per day	High design capacity, but technologically inferior to new pipeline capacity.
Contracted Capacity (Early 2025)	7% (plus 4% monthly option)	Low utilization due to market shift to pipeline technology, eroding revenue base.
Outstanding Debt (as of March 10, 2025)	$185.4 million	Debt was unsustainable given low utilization; led directly to mandated asset sale.
Major Pipeline Competition Capacity	Trans Mountain Expansion: Up to 890,000 bpd	Technological replacement for crude-by-rail, significantly reducing demand.

Action: Finance: Draft a final asset liquidation and debt write-off reconciliation report by year-end 2025.

USD Partners LP (USDP) - PESTLE Analysis: Legal factors

The legal landscape for USD Partners LP is dominated by the consequences of its financial distress, specifically the legal agreements that forced the sale of its core assets and the subsequent shift in its regulatory compliance obligations. You need to understand that the Forbearance Agreement with its lenders was not a bridge to recovery; it was the legal framework for an orderly wind-down.

Lenders required the sale of the Hardisty Terminal as a condition of the Forbearance Agreement.

The Partnership's financial stability crumbled, triggering events of default under its revolving credit facility. To avoid immediate action from lenders, USDP entered into a Forbearance Agreement on June 21, 2024, which legally required the sale of the Hardisty Rail Terminal, its last major operating asset, as a non-negotiable condition. The initial deadline for this sale was December 30, 2024, but the transaction was ultimately completed on April 10, 2025.

This sale was the result of an extensive, lender-approved marketing process. The legal mandate ensured the lenders could recover capital, effectively overriding any other strategic options for the asset. This is a classic example of debt covenants dictating corporate strategy when liquidity runs dry.

Partnership is taking steps to formally wind down or dissolve following the final asset sale.

With the Hardisty Rail Terminal sold, the Partnership has disposed of substantially all of its operating assets. The legal next step, as outlined in the January 21, 2025, announcement, is to formally wind down or dissolve the Partnership.

The expectation is that upon the sale's closing, the lenders will terminate the revolving credit facility and legally write off the substantial remaining debt balance. The subsequent dissolution process involves complex legal steps to settle all remaining liabilities and distribute any residual value to unitholders, though the expectation of a significant distribution is low given the circumstances. This is the final legal stage for the Master Limited Partnership (MLP) structure.

Compliance with OTC Markets Group (OTC) disclosure requirements after NYSE delisting.

The Partnership's financial decline led to its common units being delisted from the New York Stock Exchange (NYSE) on December 1, 2023, because it failed to maintain the required average global market capitalization of at least $15 million over a consecutive 30 trading-day period.

This forced a move to the less regulated OTC Pink Market under the ticker USDP. While USDP filed a Form 15 in December 2023 to voluntarily deregister and suspend its obligations to file periodic reports with the Securities and Exchange Commission (SEC) (like Forms 10-K and 10-Q), it continues to provide disclosure to remain compliant with the OTC Markets Group.

The key disclosure documents for 2025 are:

• Annual Unaudited Financial Statements for the year ended December 31, 2024 (posted March 10, 2025).
• Annual OTC Disclosure Statement for the year ended December 31, 2024.

Honestly, the legal burden here is minimal, but it's a necessary step to maintain a semblance of transparency for the remaining unitholders trading on the Pink Market.

Multi-year, take-or-pay contracts with customers were not enough to stave off financial distress.

The Partnership was structured as a fee-based MLP, generating substantially all its operating cash flows from multi-year, take-or-pay contracts with primarily investment grade customers. This structure is meant to provide stable, predictable revenue, but it clearly wasn't a bulletproof shield against financial distress.

The legal strength of these contracts, which obligate customers to pay a minimum fee regardless of actual volume (the 'take-or-pay' clause), was insufficient to offset the Partnership's high debt load and other operational challenges that led to the credit facility defaults. For example, the transaction price allocated to remaining performance obligations for the Terminal services segment for the fiscal year 2025 was still a notable $10,365 thousand as of December 31, 2024, demonstrating that the contractual revenue was still legally on the books, but the overall financial structure was too fragile.

Legal/Financial Event	Date/Period	Associated Legal/Financial Value
NYSE Delisting Criterion Failure	Prior to Nov 2023	Average market capitalization below $15 million
Forbearance Agreement Signed	June 21, 2024	Required sale of Hardisty Rail Terminal
Hardisty Rail Terminal Sale Completion	April 10, 2025	Triggered formal wind-down process
Remaining Contractual Revenue (2025)	As of Dec 31, 2024	$10,365 thousand (Terminal Services RPO)
Current Trading Venue	2025	OTC Pink Market (Ticker: USDP)

USD Partners LP (USDP) - PESTLE Analysis: Environmental factors

Increased environmental scrutiny and risk associated with transporting crude oil by rail.

The core environmental risk for USD Partners LP has always been the transportation of crude oil, particularly heavy crude from Western Canada, by rail. This method faces intense public and regulatory scrutiny due to the catastrophic potential of derailments, which can lead to significant environmental damage and loss of life. While the company has focused on providing safer logistics, the entire crude-by-rail model carries a high-profile risk premium.

The risk is amplified by the Partnership's imminent wind-down, expected after the sale of its final operating asset, the Hardisty Rail Terminal, by mid-April 2025. Any major incident before or during the dissolution process would immediately convert a contingent liability into a massive, uninsurable remediation cost, potentially exhausting remaining capital and complicating the debt write-off process. The industry continues to push for safer, greener processes, but the inherent volatility of the product transported remains the central, defintely unchangeable risk.

Pressure to meet stricter environmental standards for terminal operations and storage.

Terminal operations, which involve crude oil storage and loading, are under continuous pressure to minimize emissions and prevent spills. The Hardisty Terminal, for instance, has already incorporated technology to address this.

• Vapor Management: The facility utilizes an onsite vapor management system. This is a critical operational measure designed to minimize hydrocarbon loss, which directly reduces volatile organic compound (VOC) emissions and improves safety during the railcar loading process.
• Compliance Cost: Maintaining this level of compliance requires ongoing capital expenditure and operational expense, which, in the context of a wind-down, becomes a short-term cost burden that must be managed until the final sale and transfer of the asset.

Climate change policies reduce the long-term viability of dedicated fossil fuel infrastructure.

For most energy companies, climate change policies represent a long-term threat to asset utilization (stranded assets). For USD Partners LP, this threat has accelerated into a near-term reality, contributing to the decision to dissolve. The partnership's infrastructure is dedicated to fossil fuels, and while US federal policy has recently seen a 'climate pullback' in early 2025, with potential rollbacks of clean energy incentives, the global and corporate push for net-zero carbon emissions continues.

The market's long-term view of fossil fuel logistics assets has already devalued the company's infrastructure. This is evident in the forced sale of the Hardisty Terminal as a condition of a forbearance agreement with lenders, which is a clear signal that the value of dedicated crude infrastructure is rapidly eroding in the face of transition risk. The company is now focused on exiting the business, not on long-term viability.

Environmental remediation liabilities remain a risk during the wind-down process.

This is the most significant financial risk as the Partnership winds down. Environmental remediation liabilities, including Asset Retirement Obligations (AROs), represent the future cost of dismantling and cleaning up the sites.

Honestly, the biggest concern here is the unquantified nature of the risk. We know the Partnership has substantial debt-approximately $185.4 million outstanding under its Credit Agreement as of March 10, 2025-which is expected to be written off upon the final asset sale and dissolution. However, the Partnership's financial statements state that the Asset Retirement Obligation cost is considered indeterminate.

Here's the quick math on the risk: Since the economic life of the terminal facilities cannot be reasonably estimated, the Partnership cannot recognize the fair value of the ARO on its balance sheet. This means a major, unquantified environmental cleanup cost could emerge during the wind-down or after the sale, potentially creating a significant, unexpected liability for the dissolving entity and its stakeholders.

Environmental Risk Factor	Status (2025)	Financial/Operational Impact
Crude-by-Rail Scrutiny	High, immediate risk due to product volatility	Potential for catastrophic, uninsurable cleanup costs; drives need for vapor management systems.
Long-Term Viability of Infrastructure	Extremely Low (Dissolving)	Contributed to forced sale of final asset; market has already priced in transition risk.
Asset Retirement Obligation (ARO)	Indeterminate (Unquantified)	The fair value of the ARO cannot be reasonably estimated due to indeterminate asset lives, leaving an unquantified contingent liability during the dissolution.
Outstanding Debt (Context of Wind-Down)	$185.4 million as of March 10, 2025	Remediation liabilities must be addressed within the context of the debt write-off and final dissolution plan.

What this estimate hides is that even a small, unexpected remediation requirement could derail the clean termination of the Partnership, making the environmental due diligence on the Hardisty Terminal sale absolutely crucial.