FTAI Energy Partners, better known as Jefferson Energy and a subsidiary of Nasdaq-listed FTAI Infrastructure, has agreed to pay roughly $255m in cash for a portfolio of crude oil logistics assets from a subsidiary of the USD Group (USDG).

The package includes the Port Arthur Terminal in south-east Texas and a 50% stake in a diluent recovery unit (DRU) at Hardisty, Alberta. FTAI Infrastructure expects the transaction to close in the fourth quarter of 2026, subject to regulatory approval.

Asset profile

The Port Arthur facility is built to receive about 50,000 bpd of rail-delivered crude oil. It distributes product through a proprietary 12-mile, 24in-diameter pipeline system tied into Phillips 66's Beaumont terminal. From there, crude reaches refiners across Beaumont, Lake Charles and other Gulf Coast locations.

Together, the two assets form an integrated logistics platform moving crude from origin to destination. The system serves the Beaumont refinery hub under a long-term, take-or-pay contract with a major exploration and production company — a structure that underpins the earnings base Jefferson is buying.

FTAI Infrastructure forecasts the acquired operations will generate approximately $50m in annual EBITDA over the coming 12 months.

Funding and structure

Jefferson will fund the purchase through an acquisition debt facility obtained by Jefferson and its subsidiaries, alongside assumption of the acquired business's existing indebtedness.

The company is also weighing whether to fold the new assets into Jefferson Bond Borrower, the entity that currently holds its main terminal business and part of the Jefferson South terminal. That move could involve issuing additional parity bonds under the relevant indenture.

Jefferson CEO Hank Alexander framed the deal as a step change for the platform.

"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," Alexander said.

"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."

Advisers

Jefferies acted as financial adviser to Jefferson. Barclays was engaged to assist with capital financing. Houlihan Lokey advised USDG.

Legal counsel for Jefferson came from Vinson & Elkins, Bennett Jones, and Skadden, Arps, Slate, Meagher & Flom. Gibson, Dunn & Crutcher represented USDG on the deal.

Jefferson is based in Houston and operates multimodal terminal facilities at the Port of Beaumont, a major refining and petrochemical centre in North America. Its services span transloading, storage, blending, and handling of crude oil, refined products and ammonia.

Watch item: regulatory approval for the acquisition, with closing targeted for Q4 2026. Any decision on integrating the assets into Jefferson Bond Borrower — and the parity bond issuance that could follow — will shape the financing structure in the meantime.