About Blueknight Energy Partners, L.P.

Blueknight Energy Partners, L.P. and subsidiaries provide integrated terminalling services for companies engaged in the production, distribution and marketing of liquid asphalt. Blueknight Energy Partners G.P., L.L.C. serves as the general partner of the company. The company’s operating assets are owned by, and its operations are conducted through, its subsidiaries. The company’s general partner has sole responsibility for conducting its business and for managing its operations. Ergon (Ergon, Inc., its affiliates and subsidiaries) owns 100% of the outstanding membership interest of Blueknight GP Holding, L.L.C., which owns 100% of the membership interest of the company’s general partner. Strategies The company’s strategy is to be a downstream terminalling solutions provider focused on infrastructure and transportation end-markets. The company owns 54 asphalt terminalling facilities in 26 states, consisting of approximately 9.0 million barrels of liquid asphalt storage, which are well positioned to provide services in the market areas they serve throughout the continental United States. In addition, the company has a focus on leveraging this existing site footprint to increase utilization for other complementary specialty products. The company evaluates growth opportunities from multiple angles, including growth through third-party acquisitions and optimizing its existing asset base. Asphalt Terminalling Services The company provides asphalt terminalling services to marketers and distributors of liquid asphalt and asphalt-related products. With approximately 9.0 million barrels of liquid asphalt cement storage capacity, the company is able to provide its customers the ability to effectively manage their liquid asphalt inventories while allowing significant flexibility in their processing and marketing activities. As of March 1, 2022, the company had 54 terminals located in 26 states, and as such, were well-positioned to provide asphalt terminalling services in the market areas it serves throughout the continental United States. The company serves the asphalt industry by providing its customers access to their market areas through a combination of leasing its liquid asphalt facilities and providing terminalling services at certain facilities. As of March 1, 2022, the company had leases and terminalling agreements relating to all of its asphalt facilities, including 28 under contract with Ergon. The company’s agreements have, based on a weighted average of remaining fixed revenue, approximately 5.3 years remaining under their terms. At facilities where the company has terminalling agreements, the company receives, stores and/or processes its customers’ asphalt products until those products are ready to be delivered to its 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 into its terminalling and storage facilities, as well as the processing and manufacturing equipment required for the processing of asphalt emulsions, polymer modified asphalt cement, and other related finished asphalt products. After initial unloading, the liquid asphalt is moved via heat-traced pipe into storage tanks. Those tanks are insulated and contain heating elements that allow the liquid asphalt to be stored in a heated state. The liquid asphalt can then be directly sold by the company’s customers to end users or used as a raw material for the processing of asphalt emulsions, polymer modified asphalt cement, and related finished asphalt products that the company processes in accordance with the formulations and specifications provided by its customers. Depending on the product, the processing of asphalt entails combining asphalt cement and various other products, such as emulsifying chemicals and polymers to achieve the desired specification and application requirements. At leased facilities, the company’s customers conduct the operations at the asphalt facility, including the storage and processing of asphalt products, and the company collects a monthly rental fee relating to the lease of such facility. Significant Customers For the year ended December 31, 2021, Ergon accounted for at least 40% but not more than 45% of the company’s total asphalt terminalling services revenue. As of March 1, 2022, the company had terminalling agreements or operating leases with Ergon for 28 of its asphalt facilities. History Blueknight Energy Partners, L.P., a Delaware limited partnership, was founded in 2007. The company was incorporated in 2007.