Investor Presentation February 2015 The Smart Move in Energy Private and Confidential Investor Presentation February 2015 (NASDAQ: BKEP & BKEPP)
Partnership Overview Private and Confidential Investor Presentation February 2015 (NASDAQ: BKEP & BKEPP)
Partnership Overview Blueknight Energy Partners, L.P. (BKEP) is a publicly traded master limited partnership Headquartered in Oklahoma City, Oklahoma; established in 2007 General Partner owned equally by Vitol and Charlesbank…
Common and Preferred Units Common Units Preferred Units Market NASDAQ NASDAQ Symbol BKEP BKEPP Outstanding 32,915,481 30,158,619 Yield at 2/9/15 7.5% 7.9% Distribution Tenth consecutive quarterly distribution 0.715/unit annual…
Sponsorship Overview Worlds largest independent oil trading Private equity firm with over 2 billion of company capital under management Moves equivalent of over 5 million Long history of making middle-market barrels/day of…
Ownership Charlesbank Capital Partners Vitol Holding B.V. CB-Blueknight, LLC Blueknight Energy Holding, Inc. 50.0% 50.0% Ownership Ownership Interest Interest Blueknight GP Holding, LLC (DE) 14.3% Limited 14.3% Limited…
Diversified Operations Asphalt Terminal Crude Oil Terminalling and Network (52.1%) Storage (25.6%) 7.0 million barrels of 6.6 million barrels of asphalt and residual Cushing, OK storage fuel oil storage 0.4 million barrels of 42…
Crude Oil Area of Operations Private and Confidential Investor Presentation February 2015 9 (NASDAQ: BKEP & BKEPP)
Partnership Objectives and Strategy Partnership Objectives Business Strategy Deliver unit-holder value through unit Grow crude transportation business price appreciation and increasing in shale production areas quarterly…
Crude Oil Terminalling & Storage Services Customer Value Creation Provides our customers the ability to effectively manage their crude oil inventories and add significant flexibility in their marketing and operating activities…
Crude Oil Pipeline Services: Oklahoma Systems Mid-Continent Mainline System 510-mile gathering and transportation network that gathers wellhead crude oil at a capacity of 20,000 bpd Transports the crude oil to our Cushing terminal,…
Crude Oil Pipeline Services: West Texas BKEP has 30% ownership and operates the 16 Pecos River Pipeline under a long-term service agreement with Advantage Pipeline, L.L.C. Provides crude transportation from west Texas to the…
Crude Oil Trucking & Producer Field Services Crude Trucking Crude oil trucking operations extend our ability to gather and aggregate crude oil on our systems and deliver product for third parties to their facilities Approximately…
Asphalt Services Largest independently owned asphalt terminal network 7.0 million barrels of asphalt and residual fuel oil storage capacity in 42 terminals across 21 states Generate revenues by charging fees for the lease of…
Growth Projects/Current Market Private and Confidential Investor Presentation February 2015 (NASDAQ: BKEP & BKEPP)
Knight Warrior Pipeline New construction, 160 mile, 16 pipeline with an initial capacity of 100,000bpd (expandable up to 200,000bpd) and terminal system to meet infrastructure needs of producers and marketers in the developing East…
Other Growth Projects Growth focused on crude oil pipeline segment Developing two additional pipeline projects in growing shale production areas: West Texas Pipeline Expansion (Delaware / Permian basins) Oklahoma Crude /…
West Texas Proposed 100+ mile crude oil pipeline that originates at multiple points in West TX and SE New Mexico near the TX / NM border Potential connections include: Wink, Vitol Midland, SunVit Pipeline and Advantage Pecos River…
Oklahoma Crude & Condensate: Potential project to lay a new 110 mile pipeline (Segment I) from Maysville, OK to Cushing, OK. Project will utilize more than 50% of existing BKEP right of way Condensate: Potential for second line (50…
Operations 25.6% 13.5% Leading Midstream Company With Four Diversified Operating Segments Crude Oil Terminalling & Storage Services Crude Oil Pipeline Services 8.8% 52.1% BKEPs Diversified Portfolio Provides Resilience in…
Recent Developments Current crude market favorable for asphalt business. Expect strong volumes in 2015 Recent change in shape of forward price curve from backwardated to contango has benefited Cushing storage business: Facility…
Financial Summary Private and Confidential Investor Presentation February 2015 (NASDAQ: BKEP & BKEPP)
Adjusted EBITDA and Leverage Ratio Adjusted EBITDA (s millions) Leverage Ratio 80,000 4.5x 70,000 4.0x 60,000 3.5x 3.0x 50,000 2.5x 40,000 2.0x 30,000 1.5x 20,000 1.0x 10,000 0.5x - 0.0x 2010 2011 2012 2013 YTD 9/30/14 2010…
Operating Margin Since 2012, the Asphalt, Pipeline and Trucking and Producer Field Services segment have increased 43% on a combined basis. However, this increase has been mostly offset by a decrease in Cushing crude storage rates…
Financial Summary Private and Confidential Investor Presentation February 2015 27 (NASDAQ: BKEP & BKEPP)
Actual / Forecasted Capital Spend s in thousands Private and Confidential Investor Presentation February 2015 28 (NASDAQ: BKEP & BKEPP)
MLP Sector Capex Market 489 631 4,070 1,230 1,008 6,308 16,288 4,937 9,910 2,813 806 Capitalization 15 - '16 Capex 313 237 1,086 266 191 793 1,813 400 750 149 31 (est) Information provided by Citi Corporate and Investment Bank…
Key Investment Highlights Cushing Interchange: Resident player at core location for crude oil distribution and marketing Attractive Core Base Asphalt Facilities: Geographic diversification in key domestic markets with multiple potential…
Appendix Private and Confidential Investor Presentation February 2015 (NASDAQ: BKEP & BKEPP)
Selected Historical Financial Data Year Ended Nine Months Ended (s in thousands) December 31, September 30, 2012 2013 2013 2014 Selected Consolidated Statement of Operations Data Service revenue: Crude Oil Terminalling and…
Adjusted EBITDA and Reconciliation of Non-GAAP Measures Private and Confidential Investor Presentation February 2015 33 (NASDAQ: BKEP & BKEPP)
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