MONTREAL (Oil Monster): FTAI Energy Partners LLC has agreed to acquire a major crude oil logistics platform from USD Group LLC for approximately $255 million, adding assets that connect Canadian heavy crude production with key U.S. Gulf Coast refining markets.
The transaction includes the Port Arthur Terminal in Texas and a 50% interest in the Diluent Recovery Unit, or DRU, located in Hardisty, Alberta.
The deal was announced September 28, 2026 and is expected to close during the fourth quarter, subject to required regulatory approvals.
The acquired assets operate as an integrated origin-to-destination crude oil logistics system serving the Beaumont refinery hub.
The platform is supported by a long-term take-or-pay agreement with a major energy exploration and production company, including minimum volume commitments from an investment-grade counterparty.
The Hardisty DRU removes diluent from Canadian bitumen before the resulting heavy crude product is transported by rail to the U.S. Gulf Coast.
The Port Arthur Terminal then receives the crude and provides access to refining markets in Beaumont, Lake Charles and other Gulf Coast locations.
The Port Arthur Terminal is designed to handle approximately 50,000 barrels per day of crude oil delivered by rail.
From the terminal, crude moves through an owned 12-mile, 24-inch pipeline connecting the facility to Phillips 66's Beaumont terminal.
That connection provides access to several refining centers along the Gulf Coast and strengthens Jefferson's existing terminal footprint in one of North America's largest refining and petrochemical regions.
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FTAI Infrastructure expects the acquired assets to generate approximately $50 million in annual EBITDA over the next 12 months.
The company said the acquisition is expected to more than double Jefferson's existing adjusted EBITDA while adding contracted cash flow under the long-term logistics agreement.
Ken Nicholson, CEO of FTAI Infrastructure, said the assets are a strong strategic fit for Jefferson and are expected to create additional value while improving Jefferson's balance-sheet position.
Jefferson CEO Hank Alexander said combining the USD Group assets with Jefferson's existing terminals would add a new long-term customer and create additional growth opportunities across the platform.
The approximately $255 million cash transaction will be funded through the assumption of existing indebtedness associated with the acquired business and an acquisition debt facility secured by Jefferson and its subsidiaries.
Jefferson has already obtained a financing commitment for the transaction.
The company also plans to evaluate combining the acquired assets with Jefferson Bond Borrower LLC, which currently owns Jefferson's main terminal business and part of the Jefferson South terminal.
If pursued, that structure could include the issuance of additional parity bonds under Jefferson Bond Borrower's existing indenture.
The acquisition extends Jefferson's crude logistics network across two strategically important energy regions: the Western Canadian heavy crude market and the U.S. Gulf Coast refining corridor.
The Hardisty DRU provides an origin point for processing and preparing heavy Canadian crude for rail transportation, while the Port Arthur terminal provides the destination infrastructure and pipeline connectivity needed to move those barrels into Gulf Coast refining markets.
That combination gives Jefferson control of additional infrastructure across multiple stages of the crude transportation chain while adding contracted revenue to its existing terminal business.
Source: FTAI Infrastructure Inc.; USD Group LLC.
