Profile: Blueknight Energy Partners LP (BKEP.OQ)
8.33USD
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$-0.18 (-2.12%)
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Blueknight Energy Partners, L.P., incorporated on February 22, 2007, is a limited partnership with operations in twenty-three states. The Company provides integrated terminalling, storage, processing, gathering and transportation services for companies engaged in the production, distribution and marketing of crude oil and asphalt product. The Company operates in four segments: crude oil terminalling and storage services, crude oil pipeline services, crude oil trucking and producer field services, and asphalt services. The Company’s operations are conducted through its subsidiaries. The Company’s general partner is jointly owned by Blueknight Energy Holding, Inc. and CB-Blueknight, LLC. The Company’s general partner has no business or operations other than managing its business.
Crude Oil Terminalling and Storage Services
The Company provides crude oil gathering, transportation, storage and terminalling services to producers, marketers and refiners of crude oil products. The Company’s crude oil operations are located primarily in Oklahoma, Kansas and Texas, where there are extensive crude oil production operations in place and its assets extend from gathering systems and trucking networks in and around these producing fields to transportation pipelines carrying crude oil to logistics hubs, such as the Cushing Interchange (Cushing, Oklahoma), where it has substantial terminalling and storage facilities that aid its customers in managing the delivery crude oil. With approximately 7.8 million barrels of above-ground crude oil terminalling facilities and storage tanks, it is able to provide its customers the ability to manage their crude oil inventories and flexibility in their marketing and operating activities.
The Company’s crude oil terminals and storage assets receive crude oil products from pipelines, including those owned by the Company, and distribute these products to interstate common carrier pipelines and regional independent refiners, among other third parties. Its crude oil terminals derive most of its revenues from terminalling services fees charged to customers. As of December 31, 2011, the Company owned and operated 34 crude oil storage tanks with approximately 6.6 million barrels of storage capacity at Cushing Interchange in Cushing, Oklahoma. In addition it owns approximately 10 additional acres of land within the Cushing Interchange that is available for future expansion. The Company owns and operates the Longview terminal, located in Longview, Texas, consisting of seven tanks with a total storage capacity of 430,000 barrels.
Crude Oil Pipeline Services
The Company owns and operates a crude oil gathering and transportation system in the Mid-Continent region of the United States with a combined length of approximately 820 miles and a 330 mile tariff-regulated crude oil gathering and transportation pipeline in the Longview, Texas area. In addition, it owns and operates the Eagle North Pipeline System in the Mid-Continent region of the United States with a length of approximately 139 miles. The Oklahoma portion of its Mid-Continent system consists of approximately 790 miles of various sized pipeline, of which approximately 390 miles is idle, inactive pipe. The Mid-Continent system also includes a small, 34-mile gathering and transportation system in the Texas Panhandle near Dumas, Texas. During the year ended December 31, 2011, the system gathered an average of approximately 20,019 barrels per day of crude oil.
The Company’s Longview system consists of approximately 330 miles of tariff-regulated crude oil gathering pipeline, of which approximately 100 miles is idle, inactive pipe. The East Texas portion of this system delivers to crude oil terminalling, refinery and storage facilities at various delivery points in the East Texas region. Its Longview system also includes a small pipeline gathering system (Thompson-to-Webster) located near Houston, Texas. The Thompson-to-Webster gathering system consists of 42 miles of 6 and 8 pipeline. Deliveries made from this gathering system are transported to refineries in the Baytown/Texas City area. In 2011, its Longview system gathered an average of approximately 27,624 Bpd.
Crude Oil Trucking and Producer Field Services
To complement its pipeline gathering and transportation business, it uses approximately 157 owned or leased tanker trucks, which has an average tank size of approximately 200 barrels. Its tanker trucks moved an average of 46,826 Bpd in 2011, from wellhead locations not served by pipeline gathering systems to aggregation points and storage facilities. Several of its trucking services operating areas, such as Midland, Texas, are not served by its gathering and transportation pipeline systems. The Company provides numerous producer field services for companies, such as Eagle Rock Energy, DCP Midstream and ConocoPhillips. These services include gathering condensates by way of bobtail trucks for natural gas companies to hauling produced water to disposal wells, providing hot and cold fresh water, chemical and down hole well treating, wet oil clean up and building and maintaining separation facilities. It provides these services at contractual hourly rates. Its producer service fleet consists of approximately 123 trucks in a number of different sizes.
Asphalt Services
With approximately 7.2 million barrels of total asphalt product and residual fuel oil storage capacity, it is able to provide its customers the ability to manage asphalt product storage and processing and marketing activities. The Company’s 44 terminals are located in 22 states and as such are well positioned to provide asphalt services in the market areas they serve throughout the continental United States. In addition, the Company has leases and storage agreements with third party customers relating to 43 of its 44 asphalt facilities. At facilities where it has storage contracts, it receives, terminal, store and/or process its customer’s asphalt products until it delivers these products to customers or other third parties. The Company’s asphalt assets include the logistics assets, such as docks and rail spurs and the piping and pumping equipment necessary to facilitate the unloading of liquid asphalt cement into its terminalling and storage facilities, as well as the processing and manufacturing equipment required for the processing of asphalt emulsions, asphalt cutbacks, polymer modified asphalt cement and other related finished asphalt products. At leased facilities, the Company’s customers conduct the operations at the asphalt facility, including the storage and processing of asphalt products, and it collects a monthly rental fee relating to the lease of such facility.
The Company competes with Enterprise Products Partners L.P., Plains All American Pipeline, L.P., ConocoPhillips, Sunoco Logistics Partners L.P., Magellan Midstream Partners, L.P., Enbridge Energy Partners, L.P., Rose Rock Midstream L.P, BP p.l.c., Flint Hills Resources, L.P., CHS, Inc., Exxon Mobil Corporation, ConocoPhillips Company, NuStar Energy L.P., Ergon, Inc., Marathon Petroleum Company LLC, Alon USA LP, Suncor Energy Inc., Valero Energy Corporation, daho Asphalt Supply, Inc., Asphalt Materials, Inc, OldCastle Materials, Inc., Colas SA., KinderMorgan Energy Partners, International-Matex Tank Terminals and Houston Fuel Oil Terminal Company.
Company Address
Blueknight Energy Partners LP
Suite 200, 201 NW 10th
OKLAHOMA CITY OK 74013
P: +1405.2786400
F: +1302.6555049
Company Web Links
| Name | Compensation |
|---|---|
Duke Ligon |
-- |
Mark Hurley |
3,032,780 |
Alex Stallings |
626,745 |
Jeffery Speer |
500,724 |
James Griffin |
400,476 |

