Dakota Plains, the heavily
integrated midstream energy sector operator that has been making a killing via
50/50 JV crude off-take servicing that spans the gamut from marketing, to
transloading and trucking, has issued an update to markets today on their expansion
progress at the terminal, as well as covering ongoing corporate activities.
The new expansion to the
Pioneer Terminal has successfully brought up capacity to the dual 8.3k feet of
track desired (facility can now handle two 120-car trains with the full loop)
and cars began loading last month in January as work wrapped up on this
state-of-the-art transloading terminal, with management beaming that the job
came in under budget, on-time, and without a single lost time incident in over
120k man-hours. The company looks to set a throughput record this month and is
targeting a full 60.8% jump to 38.6k BOPD (compared to only 24k in 2013), with
yearly average forecast to climb to 45k BOPD as the terminal, which started
receiving third-party transloading volumes last month to supplement the JV
workload, will be taking on even more third-party volumes as things progress.
The Pioneer Project
expansion of the company’s Mountrail County, North Dakota facility has not only
further cemented DAKP’s transloading presence in this thriving E&P region,
which has over 15k development wells expected to be drilled within just 25
miles of the terminal, the new UNIMIN frac sand automated terminal (set to be
completed this May) portion of the project makes DAKP an extremely attractive
choice from the operator’s standpoint when it comes to picking a service
provider. These underlying fundamentals are huge for DAKP and they stand to win
over many operators in the region as a vendor of choice for their transloading
needs. With over 750k tons/year capacity, the new frac sand terminal will have
8k tons of storage capacity and four new ladder tracks, a setup so good they
have already begun interim operations, with full sand rail cars on-site and
direct truck transloading slated within the next few weeks.
CEO of DAKP, Craig McKenzie,
clearly proud of the significant growth of both the company’s operational
capacity in this E&P hot spot, as well as the value proposition for
shareholders, emphasized record-breaking throughput volumes and the new UNIMIN
frac sand terminal as key aspects of DAKP’s true value. McKenzie pledged to
keep pace with Bakken development by responding aggressively to demand with the
best, most advanced transloading facilities possible for outbound and inbound
customers, confident in the knowledge that satisfying both off-take and
supplier customers with premium service as the company’s operations continue to
ramp up through 2014, will ultimately translate directly into an improved
bottom line for DAKP shareholders.
Similarly, the Prairie Field
Services trucking JV expansion, which saw the fleet jump to 29 trucks in order
to accommodate all this volume, is extremely bullish for DAKP’s operations and
they are currently doing about 21k BOPD with the trucks. The company is
currently applying for DAKP to be listed on a national stock exchange as soon
as Q2 this year and investors should keep a close eye on Dakota Plains moving
forward here for updates to this effect. With a blanket 80k BOPD capacity in
the newly upgraded terminal and the UNIMIN frac sand operations coming along
nicely, DAKP now offers Bakken developers a nearby rail terminal that utilizes
high safety standards and the best modern equipment.
For more information on
Dakota Plains Holdings, visit www.DakotaPlains.com
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