MAY 2019 Investor Presentation The smart move for terminalling and transportation (NASDAQ: BKEP & BKEPP) Private and Confidential
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 27 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 5
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 services segment…
Asphalt Terminalling Services Largest independently owned Multiple loading/unloading options: asphalt terminal network o Truck 8.8 million barrels of asphalt o Marine and residual fuel oil storage o Rail 53 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…
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: 646 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 (NASDAQ: BKEP & BKEPP) Private and Confidential 12
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 60 tanker trucks serving…
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…
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…
Financial Targets Target Leverage Decrease leverage to 4.0x to 4.5x by December 31, 2019 Long-term leverage target of 3.5x Distribution Policy On track to exceed target distribution coverage of greater than 1.0x for 2019; First…
Appendix (NASDAQ: BKEP & BKEPP) Private and Confidential 17
Reconciliation of Adjusted EBITDA and Distributable Cash Flow to Net Income (NASDAQ: BKEP & BKEPP) Private and Confidential 18
Operating Margin and Reconciliation to Operating Income (NASDAQ: BKEP & BKEPP) Private and Confidential 19
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