When is the transaction expected to close?

Closing depends on receiving required regulatory approvals, which the company expects during the fourth quarter of 2026. Because the assets are in both Texas and Alberta, the review involves more than one jurisdiction and its own set of timelines. No specific approval body or long-stop date was disclosed in the announcement.

What financial contribution does Jefferson expect from the assets?

The company said it expects the acquired assets to generate approximately $50 million of annual EBITDA over the next twelve months. That figure is a forward-looking expectation tied to the period following the deal, not a reported historical result. Actual performance will depend on factors such as throughput volumes, contractual arrangements and the timing of closing.

FTAI's Jefferson Affiliate to Buy Port Arthur Terminal and Hardisty DRU Stake for $255 Million

Q: What is a Diluent Recovery Unit used for?

In Western Canada, diluent — a light hydrocarbon — is blended into heavy bitumen so the thick crude can flow through pipelines. A Diluent Recovery Unit separates that diluent back out of the blend so it can be recovered and reused. Hardisty, Alberta, where the unit is located, is a major gathering and staging hub for Canadian heavy crude.

FTAI Energy Partners LLC, a subsidiary of FTAI Infrastructure (Nasdaq: FIP), has agreed to acquire the Port Arthur Terminal in Texas and a 50% interest in a Hardisty, Alberta diluent recovery unit from a USD Group subsidiary for about $255 million in cash.

Disclaimer: News content is based on public news sources and provided for information only. It does not constitute investment advice.

FTAI's Jefferson Affiliate to Buy Port Arthur Terminal and Hardisty DRU Stake for $255 Million

GlobalNewswire·9/28/2026, 10:30:00· merger

Deal at a Glance

FTAI Energy Partners LLC, which operates under the Jefferson Energy Companies name, said on Sept. 28, 2026 that one of its subsidiaries signed a definitive agreement to buy two midstream assets from a subsidiary of USD Group LLC. The package consists of the Port Arthur Terminal in Port Arthur, Texas, and a 50% interest in the Diluent Recovery Unit in Hardisty, Alberta. Total consideration is approximately $255 million in cash. The company said it expects the acquired assets to generate roughly $50 million of annual EBITDA over the next twelve months — a forward-looking expectation rather than a reported historical result. The transaction still requires regulatory approvals, which the company expects to receive in the fourth quarter of 2026.

What the Two Assets Are

Port Arthur sits on the Texas Gulf Coast, home to one of the largest concentrations of refining and crude export capacity in the United States, where terminals typically provide storage, blending and marine loading services. Hardisty, Alberta, is a gathering hub for Canadian heavy crude, where diluent — a light hydrocarbon — is blended into bitumen so the thick crude can move through pipelines. A Diluent Recovery Unit separates that diluent back out so it can be captured and reused rather than lost in the blend. Jefferson is buying a 50% interest in the Alberta unit rather than full ownership, indicating a shared ownership structure at that site. The two assets sit at opposite ends of the same supply chain, one on the Canadian production side and one on the U.S. export side.

How the Purchase Is Being Financed

The deal is funded through two channels rather than a single source of cash. Jefferson will assume existing indebtedness attached to the acquired business, taking on liabilities that already sit against those assets. It will also use an acquisition debt facility secured by Jefferson and its subsidiaries, meaning lenders have recourse to the buyer's own asset base in addition to the purchased assets. Because existing debt is assumed, the headline $255 million figure is not the only obligation the buyer takes on. The arrangement places new borrowing at both the acquired-entity level and the buyer level, which is a common approach in midstream asset sales where the assets already carry project or facility debt.

Approvals and Closing Timeline

Closing is conditioned on receipt of required regulatory approvals, which the company expects during the fourth quarter of 2026. Because the assets are located in Texas and Alberta, any review spans two jurisdictions with separate regulators and distinct timelines. Until approvals are granted, the definitive agreement does not result in transferred ownership, and the $50 million EBITDA expectation remains forward-looking rather than realized. The announcement did not identify specific approval bodies or set out a long-stop date for completion. Regulatory timing is therefore the main variable between signing and closing.

FTAI Infrastructurecrude oil logisticsPort Arthur terminaldiluent recovery unitmidstream acquisition

Frequently asked questions

Who is buying the assets and who is selling them?▾

The buyer is a subsidiary of FTAI Energy Partners LLC, which operates as Jefferson Energy Companies and is itself a subsidiary of Nasdaq-listed FTAI Infrastructure Inc. (ticker FIP). The seller is a subsidiary of USD Group LLC. The two parties signed a definitive agreement announced on Sept. 28, 2026.

What exactly is included in the transaction?▾

The package covers the Port Arthur Terminal in Port Arthur, Texas, and a 50% interest in the Diluent Recovery Unit located in Hardisty, Alberta. Jefferson is acquiring a half stake in the Alberta unit rather than full ownership, which points to a joint-ownership arrangement at that facility. The terminal and the processing unit sit at different points of the crude supply chain.

How is the roughly $255 million purchase being paid for?▾

Jefferson is financing the deal by assuming existing indebtedness attached to the acquired business and by drawing on an acquisition debt facility secured by Jefferson and its subsidiaries. That means the buyer is taking on pre-existing liabilities in addition to arranging new borrowing. As a result, the $255 million cash figure does not represent the full set of obligations the buyer assumes.

What is a Diluent Recovery Unit used for?

Key takeaways

Deal at a Glance

What the Two Assets Are

How the Purchase Is Being Financed

Approvals and Closing Timeline

Where the Buyer and Seller Stand

Common mistakes to avoid

Reacting to a single headline without reading the full context — one data point is rarely the whole story.
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FTAI's Jefferson Affiliate to Buy Port Arthur Terminal and Hardisty DRU Stake for $255 Million

Deal at a Glance

What the Two Assets Are

How the Purchase Is Being Financed

Approvals and Closing Timeline

Frequently asked questions

Key takeaways

Common mistakes to avoid

Related reading

Deal at a Glance

What the Two Assets Are

How the Purchase Is Being Financed

Approvals and Closing Timeline

Frequently asked questions

Key takeaways

Common mistakes to avoid

Related reading

Where the Buyer and Seller Stand