CANADA; UNITED STATES OF AMERICA —Jefferson Energy Partners has entered into a definitive agreement to acquire midstream crude oil logistics infrastructure from USD Group for approximately $255 million in cash. The deal includes full ownership of the Port Arthur Terminal in Texas alongside a 50% equity stake in the Diluent Recovery Unit situated in Hardisty, Alberta. Expected to close during the fourth quarter of 2026 pending regulatory clearances, the transaction will be financed via assumed debt alongside a newly secured acquisition credit facility. Jefferson Energy, a subsidiary of FTAI Infrastructure Inc., operates multimodal terminal assets along the U.S. Gulf Coast, specializing in storage, handling, and transloading services for liquid energy products.
This strategic acquisition substantially bolsters Jefferson Energy's midstream footprint by introducing an integrated origin-to-destination transport framework connecting Canadian production centers directly with Texas refining facilities. The acquired assets feature long-term, take-or-pay volume commitments from an investment-grade exploration and production counterparty, generating an estimated $50 million in annual EBITDA over the next twelve months. By effectively doubling Jefferson Energy's earnings base while adding guaranteed revenue, the combination optimizes cash flow visibility and deleverages the company's operational balance sheet.
The transaction reinforces infrastructure connectivity across the North American energy corridor, enhancing rail-to-pipeline capacity into major refining hubs such as Beaumont and Lake Charles. Operating at a designed handling capacity of 50,000 barrels per day, the Port Arthur rail terminal routes heavy crude through an owned 12-mile, 24-inch pipeline system directly into Gulf Coast distribution networks. This expanded logistics ecosystem helps counter market volatility by securing dedicated distribution routes for crude oil producers and refiners operating throughout Texas and Louisiana.
For institutional investors and energy stakeholders, the expansion highlights strong ongoing demand for fee-based infrastructure assets backed by minimum volume guarantees. Jefferson Energy is considering combining these newly acquired operations with its primary terminal subsidiary, Jefferson Bond Borrower LLC, and issuing additional parity bonds to refine its capital structure. The transaction underscores broader consolidation trends within the North American logistics sector as midstream operators prioritize contracted earnings and enhanced multimodal access to strengthen regional energy supply chains.
