Usd Partners Lp

Ladies and gentlemen, thank you for standing by and welcome to the USD Partners LP fourth 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 star 2. When asking a question, we ask that you please pick up your handset to allow optimal sound quality. Lastly, if you should require operator assistance, please press star 0. 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 fourth quarter 2022 earnings call. With me today are Dan Borgen, our Chief Executive Officer, Adam Altshuler, 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 and year ended December 31st, 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 Statements regarding forward-looking statements and last night's press release applies to the statements and management on this call. Also, please note that information presented on today's call speaks only as of today, March 2, 2023. Any time-sensitive information may no longer be accurate at the time of any webcast replay or reading of the transcripts. Finally, today's call will include discussions on non-GAAP financial measures. Please see last night's press release for Reconciliations to the Most Comparable GAAP Financial Measures. And with that, I'll turn the call over to Dan Borgen.

Thank you, Jennifer, and good morning. And thank you all for joining us on the call today and for your continued support of the partnership. The partnership had a challenging year in 2022 due primarily to market conditions surrounding the Canadian heavy crude oil macro. However, despite the challenging macro story, the underlying economics for moving Drewbit from Hardesty to the Gulf Coast were positive in full year 2022 and improved significantly in the fourth quarter of 2022. The positive and improving economics for Drewbit is evidenced by the BRU operating above nameplate capacity and our Drewbit customer continuing to exceed its minimum volume commitment at the partnership's Hardesty rail terminal. To date, we've moved over 20 million barrels through our Drewbit by rail network, which includes the Hardesty rail terminal. As a reminder, given the challenges of all transportation modes, our Drewbit network offers a unique, competitive, reliable, and safer method of delivering heavier barrels to destination markets. And DrewBid creates new markets, blending opportunities, and better net back opportunities for our customers with a lower carbon footprint. Finally, DrewBid is non-hazardous and non-climbable, which allows the partnership to be further aligned with its customers as it pertains to safety and reliability. And we are pleased to see the Drew Bit by Rail network benefit the communities our customers and rail partners serve. We continue to have detailed discussions with new and existing customers to provide safer and economically beneficial Canadian crew transportation options. And we remain focused on converting the partnership's Dill Bit capacity to our longer-term, sustainable Drew Bit program, which, as a reminder, is supported by longer tenure with 10-year contracts. As always, we are constantly updating our market point of view on where crude oil markets are today, but also where crude markets are headed in the future. And we do our best to rely on facts and observable market indicators to help drive strategy and priorities. We remain focused on growing our core business and are always evaluating options to maximize the value that our strategic network provides to our customers and unit holders. With Canadian storage utilization levels currently at the high end of the historical averages and the industry's expectations around production growth in Canadian oil sands in 2023 and 2024, we continue to see the potential for future heavy crude oil production exceeding the availability of existing egress, alternatives driving the need for egress by rail. As previously announced, in order to support the partnership's liquidity position during this recontracting cycle, the partnership's sponsor decided to waive its right to the fourth quarter distribution on its 17.3 million units without impacting the distribution to the remaining unit holders. Management believes this was the prudent thing to do given recent momentum around expanding our DrewBit program as well as recent discussions we are having around our Stroud terminal. Next, Adam is going to give an update on the partnership's latest financial results and our liquidity position. Then we'll jump back into the recent market and commercial developments. Adam, please go ahead.