Blueknight Energy Partners LP announced March 1 that it has closed the previously announced sale of its crude oil terminalling segment to Enbridge Inc. for a purchase price of $132 million. The transaction is subject to customary post-closing adjustments and excluding crude oil line-fill and inventory.
Including the previously announced sale of its crude oil pipeline and trucking segments, both of which closed in February 2021, Blueknight has successfully completed an exit of its crude oil business, strategically positioning the company as a pure-play terminalling company focused on infrastructure and transportation end-markets.
“Exiting our crude oil businesses has been a top priority for Blueknight since early 2020,” said CEO Andrew Woodward. “Now with a more focused strategy and business model, coupled with an improved leverage profile and available liquidity, we believe we are well-positioned to identify and capture growth opportunities and benefit from long-term positive investment trends in U.S. infrastructure.”
Total cash consideration for the combined crude oil terminalling, pipeline, and trucking transactions was approximately $164 million, including estimated crude oil line-fill and inventory and is subject to customary post-closing adjustments. Net proceeds, after transaction costs, will be used initially to reduce borrowings outstanding under the Blueknight’s revolving credit facility and for general partnership purposes.
Blueknight is a publicly traded master limited partnership that owns the largest independent asphalt terminalling network in the country. Operations include 8.8 million barrels of liquid asphalt storage capacity across 53 terminals and 26 states throughout the U.S. Blueknight is focused on providing integrated terminalling and innovative solutions for tomorrow’s infrastructure and transportation end markets.