FTAI Energy Partners (Jefferson Energy), a subsidiary of Nasdaq-listed FTAI Infrastructure, has agreed through one of its subsidiaries to acquire a portfolio of crude oil logistics assets from a subsidiary of the USD Group (USDG) for approximately $255m in cash.
The transaction encompasses the Port Arthur Terminal in south-east Texas, as well as a 50% stake in a diluent recovery unit (DRU) in Hardisty, Alberta, Canada.
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The acquisition is expected to close in the fourth quarter of 2026 (Q4 2026), subject to regulatory approval.
According to FTAI Infrastructure, the deal will be funded through an acquisition debt facility obtained by Jefferson and its subsidiaries, alongside the assumption of existing indebtedness of the acquired business.
The acquired operations are forecast to produce roughly $50m in annual earnings before interest, taxes, depreciation and amortisation over the coming 12 months.
Together, the assets form an integrated logistics platform that transports crude oil from origin to destination, serving the Beaumont refinery hub under a long-term, take-or-pay contract with a major exploration and production company.
Designed to receive around 50,000 barrels per day of rail-delivered crude oil, the Port Arthur facility distributes product through a proprietary 12-mile-long, 24in-diameter pipeline system linked to Phillips 66’s Beaumont terminal.
From there, crude reaches refiners across Beaumont, Lake Charles and other Gulf Coast locations.
Jefferson CEO Hank Alexander said: “Combining the USDG assets with our existing Jefferson terminals is a game-changer for our platform, adding a new long-term customer to our revenue base and providing multiple growth opportunities ahead.
“We look forward to working with USDG’s team of high-quality professionals to continue to grow the acquired assets as well as our existing Jefferson business.”
Jefferson is also considering whether to integrate the new assets into Jefferson Bond Borrower, the entity that currently holds its main terminal business and part of the Jefferson South terminal. This could involve issuing additional parity bonds under the relevant indenture.
Jefferies acted as financial adviser to Jefferson, while Houlihan Lokey advised the USD Group. Barclays was engaged by Jefferson to assist with capital financing for the transaction.
Legal counsel for Jefferson was provided by Vinson & Elkins, Bennett Jones, and Skadden, Arps, Slate, Meagher & Flom. Gibson, Dunn & Crutcher represented the USD Group in legal matters related to the deal.
Jefferson is based in Houston and runs multimodal terminal facilities at the Port of Beaumont, a major centre for refining and petrochemical activity in North America. The company offers services such as transloading, storage, blending, and handling of crude oil, refined products and ammonia.
