Blueknight Exits Crude Terminalling Business
Blueknight Energy Partners, L.P. (Nasdaq: BKEP and BKEPP) reported this week that it has closed on the sale of its crude oil terminalling business to Enbridge, Inc. (NYSE: ENB).
The $132 million purchase price is subject to customary post-closing adjustments and excludes crude oil linefill and inventory, Blueknight noted in a written statement. The publicly traded master limited partnership pointed out the sale to Enbridge completes its transition to a pure-play terminalling company focused on infrastructure and transportation end-markets. It sold its crude oil pipeline and trucking segments last month.
“Exiting our crude oil businesses has been a top priority for Blueknight since early 2020,” remarked Blueknight CEO Andrew Woodward. “Now with a more focused strategy and business model, coupled with an improved leverage profile and available liquidity, we believe we are well-positioned to identify and capture growth opportunities and benefit from long-term positive investment trends in U.S. infrastructure.”
Blueknight stated that it will initially apply net proceeds from the $164 million it gained from the crude oil terminalling, pipeline, and trucking transactions toward reducing debt and general partnership purposes. As Rigzone reported in December, the crude terminalling assets in the Enbridge deal include approximately 6.6 million barrels of oil storage in Cushing, Okla. CVR Energy, Inc. (NYSE: CVI) subsidiaries and an undisclosed buyer were the crude oil pipeline business and crude oil trucking business buyers, respectively.
Blueknight noted that it owns the largest independent asphalt terminalling network in the United States, with 8.8 million barrels of liquid asphalt storage capacity across 53 terminals in 26 states.
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