MAY 2018 Investor Presentation The smart move for terminalling and transportation (NASDAQ: BKEP & BKEPP) Private and Confidential
Discussion Points Who We Are Our Sponsor Recent Developments Business Description Strategy and Growth Opportunities Financials (NASDAQ: BKEP & BKEPP) Private and Confidential 3
Who We Are Established in 2007; headquartered in Oklahoma City, OK General Partner owned by an affiliate of Ergon, Inc., since October 2016 Diversified, strategically located assets in 26 states make us a leading provider of…
Our Sponsor Private, family-owned company Formed in 1954; based in Jackson, MS Presence in 12 countries worldwide; employs over 2,500 workers globally One of the largest marketers of asphalt products in the U.S. BKEP customer…
Ergon Overview (NASDAQ: BKEP & BKEPP) Private and Confidential 7
Recent Developments (NASDAQ: BKEP & BKEPP) Private and Confidential 8
Recent Developments Announced joint venture development of a new pipeline servicing Oklahomas STACK production area, the Cimarron Express Joint venture will be initially owned 50/50 by Kingfisher Midstream (subsidiary of Alta Mesa…
Business Description (NASDAQ: BKEP & BKEPP) Private and Confidential 10
Asphalt Terminalling Services Largest independently owned Multiple loading/unloading options: asphalt terminal network o Truck 10.4 million barrels of asphalt o Marine and residual fuel oil storage o Rail 56 terminals across 26…
Asphalt Terminalling Services Characteristics of Contracts Base fee/month plus incremental revenue if Rate Structure customer exceeds minimum take-or-pay volumes Term 510 years Annual CPI adjustment Yes Customer/Facility…
State Highway and Infrastructure Funding Trends States that have Successfully Raised Revenue Since 2012 Source: Transportation for America http://t4america.org/maps-tools/state-transportation-funding/ (NASDAQ: BKEP & BKEPP)…
U.S. Asphalt Storage and Supply Trends Source: U.S. Energy Information Administration (NASDAQ: BKEP & BKEPP) Private and Confidential 14
Crude Oil Terminalling, Crude Oil Terminalling Pipeline and Services Transportation Services 6.6 million barrels of storage at Cushing Interchange Crude Oil Pipeline Comprised of three segments: Services Total Length: 655 miles 1…
Crude Oil Terminalling Services Cushing Interchange 34 tanks with 6.6 million barrels of storage Connectivity and access to all Cushing terminals Capable of receiving and/or delivering 350,000 bpd Excellent blending…
Oklahoma Crude Oil Pipelines Oklahoma Pipelines Long-term minimum take- or-pay contract with XTO Capable of transporting approximately 50,000 bpd Light crude pipeline expected to be in service in mid-2018 Recent STACK pipeline…
Cimarron Express Pipeline On May 10, 2018, Kingfisher Midstream, together with Ergon and BKEP, announced the formation of a joint venture, Cimarron Express Pipeline, LLC (Cimarron Express) Joint venture will be initially owned…
Alta Mesa Resources Overview (NASDAQ: BKEP & BKEPP) Private and Confidential 19
Declining Breakeven Prices Driven By Efficiencies (NASDAQ: BKEP & BKEPP) Private and Confidential 20
Future Oklahoma Crude Pipeline Footprint Cimarron Express Pipeline Plus Existing BKEP Oklahoma Pipelines Over 700 miles of pipelines serving the SCOOP, STACK, Merge and southern Oklahoma Approximately 200,000 - 250,000 BPD of…
Crude Oil Trucking Services 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 65 tanker trucks serving…
Strategy and Growth Opportunities Recent activity focused on strengthening our core businesses Completed approximately 181.5 million of acquisitions since May 2015 Acquisitions Divestitures May 2015 January 2017 Asphalt product…
Strategy and Growth Opportunities Blueknights strategy is to grow two core businesses while maintaining a strong balance sheet Asphalt Terminalling Services Crude Oil Terminalling and Increased asphalt operating margin…
Financial Overview (NASDAQ: BKEP & BKEPP) Private and Confidential 26
Consistent Cash Flow Generation How our highly-contracted, fee-based business drives high-growth potential Over 79.3% of operating margin, excluding depreciation and amortization, is contracted Asphalt terminalling segment provides…
Financial Targets Target Leverage Decrease leverage to under 4.0x Target 3.5x over long-term Distribution Policy Maintain 1.0x to 1.1x distribution coverage over long-term Keep conservative approach to distributions Maintain…
Appendix (NASDAQ: BKEP & BKEPP) Private and Confidential 30
Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income The following table presents a reconciliation of adjusted EBITDA and distributable cash flow to net income for the periods shown: Twelve Months Ended Three…
Operating Margin and Reconciliation to Operating Income Three Months Ended Variance Favorable/ March 31, (unfavorable) Operating Results (in thousands) 2015 2016 2017 2017 2018 % Operating margin, excluding depreciation and…
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