2013 Wells Fargo Securities Research and Economics 12th Annual Pipeline, MLP and Energy Symposium December 10-11, 2013 The Smart Move in Energy Private and Confidential Wells Fargo Pipeline, MLP and Energy Symposium December…
Blueknight Energy Partners, L.P. Presenters Mark Hurley, Chief Executive Officer Alex Stallings, Chief Financial Officer Private and Confidential Wells Fargo Pipeline, MLP and Energy Symposium December 10-11, 2013 3 (NASDAQ:…
Company Overview Blueknight Energy Partners, L.P. (BKEP) is a publicly traded master limited partnership formed in July 2007 Headquartered in Oklahoma City, Oklahoma General Partner owned equally by Vitol and Charlesbank Capital…
Operations Asphalt Terminal Crude Oil Terminalling and Network Storage 6.6 million barrels of 7.2 million barrels of Cushing, OK storage asphalt and residual 0.4 million barrels of fuel oil storage Longview, TX storage 43…
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) 17.0% Limited 17.0% Limited…
Experienced Management Team BKEPs executive management team has a deep and wide breadth of experience in the oil and gas industry New CEO, Mark Hurley, joined BKEP in September of 2012 Years of experience Executive Relevant…
Common and Preferred Units Common Units Preferred Units Market NASDAQ NASDAQ Symbol BKEP BKEPP Outstanding 22,778,601 30,158,619 Yield at 12/5/13 5.4% 7.7% Distribution Fifth consecutive quarterly distribution 0.715/unit annual…
Relative Performance Relative performance of BKEP, BKEPP, and Alerian MLP Index from December 1, 2011 to December 5, 2013 Private and Confidential Wells Fargo Pipeline, MLP and Energy Symposium December 10-11, 2013 10 (NASDAQ: BKEP…
Operations 30.4% 14.3% Leading Midstream Company With Four Diversified Operating Segments Crude Oil Terminalling & Storage Services Crude Oil Pipeline Services 10.2% 45.1% Crude Oil Trucking & Producer Asphalt Services…
Partnership Objectives and Strategy Partnership Objectives Business Strategy Deliver unitholder 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 770-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: Pecos River Pipeline BKEP has 30% ownership and operates the 16 pipeline under a long-term service agreement with Advantage Pipeline, L.L.C. Provides a safe and reliable crude transportation from…
Crude Oil Trucking & Producer Field Services Crude Trucking Trucking operations extend our ability to gather and aggregate crude oil on our systems and deliver product for third parties to their facilities Approximately 165 tanker…
Asphalt Services Largest independently owned asphalt terminal network 7.2 million barrels of asphalt and residual fuel oil storage capacity in 43 terminals across 22 states 42 of the Partnerships 43 asphalt facilities are…
Growth Projects Growth focused on crude oil pipeline segment Targeting 100 million of expansion capital spend in 2014 Now developing three pipeline projects in shale production areas: East Texas Woodbine Pipeline North Pecos…
Woodbine Pipeline Project Proposal to construct a 134 mile pipeline and terminal system to meet infrastructure needs of producers and marketers in the developing Woodbine / Eaglebine production area; expected completion mid-2015…
Pecos River Extension Proposed 95-mile crude oil pipeline that originates in Southeastern New Mexico Connects to the Advantage Pecos River Pipeline near Pecos, TX Access to Houston, Midland and Cushing markets at Crane, TX…
Oklahoma Condensate Pipeline JV 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 A second line (50 miles, Segment II )…
Financial Summary Revenue Growth Distributions Per Common Unit ( Millions) 0 0 0 Distributions resumed Q4 2011 and have been growing at a 9% annualized rate since 2012 Private and Confidential Wells Fargo Pipeline, MLP and…
Leverage Moderately leveraged even after significant capital spend in 2013 Leverage ratio has decreased from 4.2x at December 31, 2010 to 3.7x at September 30, 2013 In June 2013, BKEP entered into a 400 million amended and restated…
Financial Targets Financial Targets Target Leverage: - Mid 3.0xs; expected to increase near term due to expansion capital spend Distribution Policy: - Conservative approach to distributions - Target 10% common unit distribution…
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 Wells Fargo Pipeline, MLP and Energy Symposium December 10-11, 2013 26 (NASDAQ: BKEP & BKEPP)
Selected Historical Financial Data Private and Confidential Wells Fargo Pipeline, MLP and Energy Symposium December 10-11, 2013 27 (NASDAQ: BKEP & BKEPP)
Adjusted EBITDA and Reconciliation of Non-GAAP Measures Private and Confidential Wells Fargo Pipeline, MLP and Energy Symposium December 10-11, 2013 28 (NASDAQ: BKEP & BKEPP)
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