Blueknight Energy Sells Crude Oil Businesses to Enbridge, CVR Energy

Updated 6 months 3 weeks ago

Blueknight has entered into multiple definitive agreements in December 2020 to sell its crude oil terminalling, pipeline, and trucking businesses for $162 million in cash including linefill and inventory. The company plans to use the proceeds to reduce debt. Enbridge will acquired the crude terminalling assets for $132 million including 6.6 million barrels of storage in Cushing, Oklahoma. This is expected to close in the next 60 days. CVR Energy will buy the crude pipeline assets for 20 million including 604 miles of pipeline and 0.3 million barrels of storage located primarily in Oklahoma with closing in the next 45 days. The crude trucking business was sold to an undisclosed buyer. Simmons Energy advised Blueknight on these transactions.

Andrew Woodward, Blueknight CEO

Blueknight’s differentiated, asphalt terminalling business delivers an industry-leading, stable cash flow profile underpinned by long-term, take-or-pay contracts with a weighted average term of six years.