Blueknight Investor Presentation May 2020 Downstream Terminalling Solutions for Tomorrows Infrastructure and Transportation End Markets Private & Confidential
Blueknights Robust and Unique Platform Downstream Terminalling Solutions for Tomorrows Infrastructure and Transportation End Markets Master limited partnership established in 2007 and headquartered in Tulsa, Oklahoma…
Ergon Inc, a Leading Asphalt Marketer and Blueknight Sponsor Private, family-owned, diversified company in petroleum, road construction materials and real estate High Quality, Formed in 1954 and based in Jackson, Mississippi…
MLP Organizational Structure with Two Public Securities Blueknight General Partner NASDAQ Tickers BKEP & BKEPP ownership: Ergon, Inc. Ergon, Inc. Market Capitalization ( millions) (1,2,3) 245 Two classes of publicly traded…
Highlights and Strategy
Blueknight Investment Highlights 1 Robust, geographically-diversified system of logistics terminalling solutions focused on niche end markets Unique Platform of High-Quality Largest independently-owned network of 53 asphalt terminals…
1 Unique and Stable Platform of High-Quality Terminal Assets Diversified provider of downstream terminalling solutions for infrastructure and niche transportation end markets Robust platform of geographically diversified, high-quality…
1 Unique Platform of High-Quality Terminal Assets: Asphalt Asphalt Terminalling Services Total Capacity Largest independently owned asphalt terminal network in the U.S. Location Facilities (thousands of barrels) 8.8 million barrels…
1 Unique Platform of High-Quality Terminal Assets: Crude Oil Crude Oil Terminalling Services Strategic crude oil terminal at Cushing Interchange with 34 tanks and 6.6 million barrels of storage capacity Connections and access to all…
2 Strong Fee-Based Cash Flow Profile: High-Quality Customer Base Strong support from high-quality, stable customer base across all businesses Over 50% of revenue from terminalling customers are investment grade entities Asphalt…
3 Disciplined Financial Principles and 2020 Guidance Target long-term leverage of 3.5x and coverage greater than 1.2x Balance Sheet Committed to improving capital structure, reducing cost of capital and maintaining strong liquidity…
4 Favorable Industry Trends Driving Continued Market Growth Blueknights asphalt terminal business driven 2020 Asphalt Transportation Construction Activity ( in Billions) largely by transportation construction trends at federal, state…
5 Focused Strategic Growth Opportunities Asphalt Segment Operating Margin Per Terminal Strategic focus to transition towards a pure-play terminalling entity ( thousand/terminal) 2019 operating margin contribution Quarterly…
5 Focused Strategic Growth Opportunities: Acquisition Targets Blueknight operates the largest independently-owned U.S. network of 53 asphalt terminals Blueknight has a long history of successful asphalt terminal acquisitions, totaling…
6 Experienced Management Team Mark Hurley, Chief Executive Officer CEO of Blueknights General Partner since September 2012 2010-2012: served as the Senior Vice President, Crude Oil and Offshore of Enterprise Products, LLC, led newly…
Appendix
Financial Reconciliations to Non-GAAP Financial Measures The following table presents a reconciliation of adjusted EBITDA to net income for the periods shown: Twelve Months Ended December 31, ( in thousands) 2014 2015 2016 2017…
Financial Reconciliations to Non-GAAP Financial Measures The following table presents a reconciliation of operating margin, excluding depreciation and amortization, to total operating income for the periods shown: Twelve Months Ended…
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