TULSA, Okla.–(Company WIRE)–Dec 21, 2020–
Blueknight Electricity Associates, L.P. (“Blueknight” or the “Partnership”) (Nasdaq: BKEP and BKEPP) announced right now that it has entered into a number of definitive agreements to promote its crude oil terminalling, pipeline, and trucking small business segments for somewhere around $162 million in complete funds consideration, like believed crude oil linefill and stock. Internet proceeds, following transaction expenditures, will be utilized to begin with to cut down borrowings outstanding less than the Partnership’s revolving credit history facility and for common partnership applications.
“This announcement signifies a considerable milestone as we changeover Blueknight absent from conventional oil and gasoline operations into a pure-perform, downstream terminalling small business focused on infrastructure and transportation finish marketplaces,” stated Andrew Woodward, Main Govt Officer. “We are thrilled about the monetary overall flexibility to the two materially increase our equilibrium sheet and pursue long run investment chances predicated on threat-altered returns whilst protecting our prolonged-expression economical targets.”
“Pro forma for the transactions, Blueknight’s differentiated, asphalt terminalling enterprise provides an business-foremost, stable funds stream profile underpinned by long-term, just take-or-pay contracts with a weighted common term of six several years. Our leverage ratio is anticipated to be approximately 2. periods at first, and our coverage ratio on all distributions is predicted to be about 1.2 moments or better on an once-a-year basis. We believe that these transactions, coupled with our new and enhanced method, ideal position the Partnership for lengthy-expression expansion and achievement,” extra Woodward.
Woodward concluded, “I would also like to convey my deepest many thanks to all the workers who have supported these functions more than the yrs and throughout this time of transition. On behalf of the full firm, we sincerely respect all of your tough operate and continued commitment.”
Blueknight entered into a definitive settlement to market its crude oil terminalling segment to Enbridge, Inc. (NYSE: ENB) for a acquire selling price of $132 million, matter to customary adjustments and excluding crude oil linefill and stock. This segment includes around 6.6 million barrels of crude oil storage in Cushing, Oklahoma. The transaction is subject to Hart-Scott-Rodino assessment and closing is expected to manifest within just the following 60 times.
In addition, Blueknight entered into a different definitive agreement to provide its crude oil pipeline enterprise to subsidiaries of CVR Power, Inc. (NYSE: CVI) for a acquire cost of $20 million, issue to customary adjustments and excluding crude oil linefill and inventory. This enterprise consists of 604 miles of crude oil pipeline and somewhere around .3 million barrels of relevant crude oil storage positioned mainly in Oklahoma. The transaction is matter to customary phrases and circumstances and closing is expected to arise inside of the future 45 times.
Consideration for crude oil linefill and stock is estimated in accordance with market place-primarily based valuation formulas set forth in every of the respective agreements and is topic to change at closing.
And finally, Blueknight entered into a definitive arrangement to sell its crude oil trucking company to an undisclosed consumer, subject to customary changes.
Simmons Vitality | A Division Of Piper Sandler is serving as monetary advisor and Gibson, Dunn & Crutcher LLP is serving as lawful counsel to Blueknight. Sidley Austin LLP is serving as legal counsel to Enbridge, Inc. Baker Botts LLP is serving as lawful counsel to CVR Electrical power, Inc.
This release includes ahead-looking statements. Statements bundled in this release that are not historical details (which include, without having limitation, any statements about potential financial and running benefits, advice, projected or forecasted monetary results, goals, undertaking timing, anticipations and intentions and other statements that are not historic information) are forward-hunting statements. Such forward-wanting statements are subject to numerous dangers and uncertainties. These threats and uncertainties include, amid other matters, uncertainties relating to the Partnership’s credit card debt levels and limits in its credit history agreement, its exposure to the credit risk of our 3rd-occasion consumers, the Partnership’s long run money flows and functions, long term sector circumstances, current and future governmental regulation, long run taxation and other factors reviewed in the Partnership’s filings with the Securities and Trade Commission. If any of these challenges or uncertainties materializes, or ought to underlying assumptions show incorrect, genuine benefits or results may fluctuate materially from people envisioned. The Partnership undertakes no obligation to publicly update or revise any forward-seeking statement, no matter if as a outcome of new data, future situations or if not.
Blueknight owns and operates a diversified portfolio of complementary midstream power belongings consisting of:
- 8.8 million barrels of liquid asphalt storage situated at 53 terminals in 26 states
- 6.9 million barrels of higher than-floor crude oil storage ability situated largely in Oklahoma, approximately 6.6 million barrels of which are positioned at the Cushing Interchange terminalling facility in Cushing, Oklahoma
- 604 miles of crude oil pipeline positioned mainly in Oklahoma and
- 63 crude oil transportation automobiles deployed in Oklahoma and Texas.
Blueknight supplies built-in terminalling, collecting and transportation services for organizations engaged in the output, distribution and advertising and marketing of liquid asphalt and crude oil. Blueknight is headquartered in Tulsa, Oklahoma. For a lot more data, check out the Partnership’s web site at www.bkep.com.
See resource model on businesswire.com:https://www.businesswire.com/news/house/20201221005184/en/
Contact: Chase Jacobson, Blueknight Trader Relations
Keyword: OKLAHOMA UNITED STATES NORTH The usa
Field Key phrase: OIL/Gasoline Electricity
Resource: Blueknight Vitality Associates, L.P.
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PUB: 12/21/2020 07:30 AM/DISC: 12/21/2020 07:30 AM