USD Partners LP (NYSE:USDP) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 11:00 am ET
Ladies and gentlemen, thank you for standing by and welcome to the USD Partners LP Third Quarter 2019 Results Conference Call. At this time, all participants have been placed in listen-only mode. [Operator Instructions]
It is now my pleasure to turn the call over to Jennifer Waller, Associate Director of Financial Reporting and Investor Relations for opening remarks. Please go ahead.
Thank you. Good morning, and thank you for joining us. Welcome to our third quarter 2019 earnings call. With me today are Dan Borgen, our Chief Executive Officer; Adam Altsuler, our Chief Financial Officer; Brad Sanders, our Chief Commercial Officer; Josh Ruple, our Chief Operating Officer as well as several other members of our senior management team.
Yesterday evening, we issued a press release announcing results for the three and nine months ended September 30, 2019. If you would like a copy of the press release you can find one on our website at usdpartners.com.
Before we proceed, please note that the Safe Harbor disclosure statement regarding forward-looking statements and last night's press release applies to the statements of management on this call. Also, please note that information presented on today's call speaks only as of today, November 7, 2019. Any time sensitive information provided may no longer be accurate at the time of any webcast replay or reading of the transcript. Finally, today's call will include discussion of non-GAAP financial measures, please see last night's press release for reconciliations to the most comparable GAAP financial measures.
And with that, I would like to turn the call over to Dan Borgen.
Thank you, Jennifer. Good morning, everybody, and thanks for being on the call with us today. We're pleased to announce another positive quarter at the partnership and our 18th consecutive quarterly distribution increase, which has been consistent with our previously stated 2019 distribution guidance.
We're excited to see the higher rates at which we've renewed a good majority of our cash flows at our Hardisty terminal and those take effect this quarter. With the new higher rates, our distribution coverage for the third quarter was approximately 1.04. As we have mentioned on previous calls, we continue to work with our remaining customer at Hardisty and Stroud on renewing and extending its commitments, which come due in 2020. Given the current lack of infrastructure supporting egress out of Western Canada, we continue to be optimistic about our re-contracting efforts and our ability to create long-term sustainable solutions that include, diluent recovery units or DRU for our customers.
We look forward to reporting more on the continued momentum for -- from these re-contracting efforts and the DRU in the near future. We do feel very confident working with our good partner Gibson at Hardisty, that we are nearing completion of the commercial stage, and we look forward to talking more about that. As a reminder, that is upstairs at the parent. What that means to the Partnership is elongated revenues of 10-plus years buying through the Partnership on an exclusive relationship