Wildcat Midstream to Expand Terminal Capacity for Wax Oil
Expansion of Wildcat Midstream's Terminal
Wildcat Midstream has embarked on an exciting project to expand its terminal in Utah, aiming to enhance the export capabilities of the region's distinctive yellow and black wax crude oil. This initiative will significantly support the demand for this unique oil, allowing for more efficient transportation to the U.S. Gulf Coast.
Loading Capacity Increase
The current loading capacity of the terminal stands at 42,000 barrels per day. With the first phase of the expansion scheduled to be completed by mid-2025, loading capacity is expected to rise to 66,000 barrels daily. Following this, a second phase will increase the capacity to approximately 140,000 barrels per day by late spring 2026. To support this growth, Wildcat has successfully acquired 422 acres adjacent to its existing terminal.
Unique Qualities of Wax Crude Oil
Jim Finley, a partner at Wildcat Midstream, highlighted the strong market demand for this waxy crude oil, attributing its appeal to its high middle distillate content, which is beneficial for producing diesel and jet fuel. Furthermore, its low sulfur content not only minimizes refining costs but also lessens environmental footprints. This crude is relatively light and easy to process, enhancing its marketability.
Comprehensive Services Offered
Wildcat Midstream prides itself on being the sole turnkey terminal operator in the Uinta Basin, providing an extensive array of logistics services ranging from wellhead to railhead. Their offerings encompass trucking, railcar loading, leasing, offloading, and ensuring products reach markets efficiently. Such comprehensive services have solidified Wildcat's stronghold in the region.
Strengthened Market Positioning
Finley also mentioned that the company has secured numerous long-term contracts, broadening its market access significantly. These strategic agreements involve partnerships with a Class 1 rail carrier and the largest rail offloading terminal in Louisiana, as well as commitments for wax sales with a top-tier refiner located in the Gulf Coast, reinforcing Wildcat’s partnerships with key Uinta Basin producers.
Commitment to Local Communities
According to Finley, the terminal expansion signifies a substantial milestone in their commitment to supporting both oil producers and local communities through sustainable growth and value creation. This project is expected to yield positive economic impacts not just for the surrounding areas but also for local tribes and the state.
About Wildcat Midstream
Founded in 2018, Wildcat Midstream has quickly established itself as a top terminal operator in Utah, focusing on purchasing, marketing, and transloading wax crude oil. The company operates 14 transloaders, manages a fleet of 1,309 rail cars, and maintains three locomotives, backed by a dedicated team of 43 employees spread across operations in the region and Texas.
Frequently Asked Questions
What is the purpose of Wildcat Midstream's terminal expansion?
The expansion aims to enhance the loading capacity for wax crude oil, allowing for increased exports to the U.S. Gulf Coast.
When will the expansion phases be completed?
Phase one is anticipated to be operational by mid-2025, while phase two is expected to conclude by late spring 2026.
What unique qualities does the wax crude oil possess?
The wax crude oil features a high content of middle distillates, low sulfur levels, and a light composition, making it more efficient for processing and reducing environmental impact.
How does Wildcat Midstream support local communities?
Through this expansion, Wildcat Midstream aims to create economic opportunities in local communities, including positive impacts on local tribes.
What services does Wildcat Midstream provide?
Wildcat Midstream offers a full range of logistics services from wellhead to railhead, including trucking, railcar loading, and marketing.
About The Author
Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.