Market Overview

Blueknight Declares Quarterly Distributions


Blueknight Energy Partners, L.P. (NASDAQ:BKEP) (NASDAQ:
BKEPP – Preferred Units) ("BKEP" or the "Partnership"), announced today
that the board of directors of its general partner has declared a
quarterly cash distribution on the Partnership's common units of $0.08
per common unit, as well as a cash distribution of $0.17875 per unit on
the Partnership's preferred units. The distributions are payable on
August 14, 2018, on all outstanding common and preferred units to
unitholders of record as of the close of business on August 3, 2018.

Comment from BKEP CEO Mark Hurley:

"We continue to execute on the transactions outlined in our first
quarter earnings conference call. During that call we indicated that we
would amend our credit facility, undertake an asset sale and reduce our
common unit distribution. Just prior to the end of the quarter we
amended our credit facility and announced the $90.0 million sale of
three asphalt terminals to Ergon located in Saginaw and Lubbock, Texas
and Memphis, Tennessee. The sale transaction closed on July 12th.
Today we announce the change in our common unit distribution from
$0.145/quarter to $0.08/quarter. These actions decrease our anticipated
proforma leverage to less than 5.0x and provide the intended additional
financial flexibility. We are now entering into the busy season for our
asphalt facilities and crude oil activity in Oklahoma remains robust. We
look forward to discussing second quarter results the first week of

Forward-Looking Statements and Treasury Regulation Notice

This release may include forward-looking statements. Statements included
in this release that are not historical facts are forward-looking
statements. Such forward-looking statements are subject to various risks
and uncertainties. These risks and uncertainties include, among other
things, uncertainties relating to the Partnership's future cash flows
and operations, the Partnership's ability to pay future distributions,
future market conditions, current and future governmental regulation,
future taxation and other factors discussed in the Partnership's filings
with the Securities and Exchange Commission. If any of these risks or
uncertainties materializes, or should underlying assumptions prove
incorrect, actual results or outcomes may vary materially from those
expected. The Partnership undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b) (4) and (d). Brokers and nominees should
treat one hundred percent (100.0%) of BKEP's distributions to foreign
investors as being attributable to income that is effectively connected
with a United States trade or business. Accordingly, BKEP's
distributions to foreign investors are subject to federal income tax
withholding at the highest applicable effective tax rate. Nominees, and
not BKEP, are treated as withholding agents responsible for withholding
on the distributions received by them on behalf of foreign investors.

About Blueknight Energy Partners, L.P.

BKEP owns and operates a diversified portfolio of complementary
midstream energy assets consisting of:

  • 8.8 million barrels of liquid asphalt storage located at 53 terminals
    in 26 states;
  • 6.9 million barrels of above-ground crude oil storage capacity located
    primarily in Oklahoma, approximately 6.6 million barrels of which are
    located at the Cushing Interchange terminalling facility in Cushing,
  • 655 miles of crude oil pipeline located primarily in Oklahoma and
    Texas; and
  • 65 crude oil transportation vehicles deployed primarily in Kansas,
    Oklahoma and Texas.

BKEP provides integrated terminalling, gathering and transportation
services for companies engaged in the production, distribution and
marketing of liquid asphalt and crude oil. BKEP is headquartered in
Oklahoma City, Oklahoma. For more information, visit the Partnership's
web site at

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