Usd Partners Lp

Ladies and gentlemen, thank you for standing by and welcome to the USD Partners LP first quarter 2022 results conference call. At this time, all participants have been placed in a listen-only mode. The floor will be open for your questions following the prepared remarks. If you would like to ask a question at that time, please press star 1. If at any point your question has been answered, you may remove yourself from the queue by pressing the pound key. When asking a question, we ask that you please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero. It is now my pleasure to turn the call over to Jennifer Waller, Senior Director of Financial Reporting and Investor Relations, for opening remarks. Please go ahead.

Good morning, and thank you for joining us. Welcome to our first quarter 2022 earnings calls. With me today are Dan Borgen, our Chief Executive Officer, Adam Altflor, our Chief Financial Officer, Brad Sanders, our Chief Commercial Officer, Josh Ruppel, 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 months ended March 31, 2022. 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 in 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, May 5, 2022. Any time-sensitive information may no longer be accurate at the time of any webcast replay or reading of the transcript. Finally, today's call will include discussions of non-GAAP financial measures. Please see last night's press release, Reconciliations to the Most Comfortable Gap Financial Measures. And with that, I'll turn the call over to Dan Borgen.

Thank you, Jennifer. Good morning, and thank you for joining us on the call today. We are pleased to announce another eventful quarter at the partnership. During the first quarter, we announced the acquisition of the Hardesty South Terminal from our sponsor, as well as the simplification of the partnership's financial structure by eliminating its IDRs. We feel that this was an appropriate step to maintain a momentum in 2022 as we continue to see opportunities for our Druvit by rail network to provide safer and more economic benefits to our customers. Also, simplifying the partnership structure was critical to our growth strategy and further aligning our interests with our unit holders. We expect the acquisition of Hardesty South to provide the partnership with a growth platform by which it can realize the accretion, and additional long-term commitments that our Drew Bit by Rail network is able to support. And we are encouraged about the future as we engage with our customers regarding the second phase of the DRU and the partnership's growth. As a reminder, our Drew Bit by Rail network consists of the DRU, the partnership's Hardesty Rail Terminal, and our sponsor's Port Arthur Destination Terminal, or PAT. The DRU was constructed along with USD's strong JV partner, Gibson, and is located adjacent to the partnership's Harder C terminal. Our Drew Bit by Rail network also benefits the partnership by providing opportunities for longer-term take-or-pay revenues at the Harder C rail terminal, while providing transportation safety and environmental benefits to our customers. Consistent with our expectations from the transactions, Partnerships Board approved another increase to our quarterly cash distribution with respect to the first quarter of a quarter of a cent per unit. In addition, during the quarter, our terminals performed safely and reliably, and the partnership continued to generate a significant amount of free cash flow, which continues to be supported by our strong contract structure and high-quality investment-grade customers. We are fully operational under our new five-year renewable diesel throughput agreement underpinned by an investment-grade rated refining customer at the partnership's West Colton Terminal. This is just the first of hopefully many new opportunities being developed under our USD Clean Fuels Initiative. We look forward to sharing future announcements with the market about the next phase of growth at the DRU and our USD Clean Fuels Initiative. Next, Adam is going to give an update on the partnership's latest financial results and our liquidity position. Then we'll get back into the call and discuss recent market and commercial developments. Adam, please go ahead.