Blueknight Energy Partners LP has announced that it has closed its previously-announced sale of its crude oil terminalling segment to Enbridge Inc. for a purchase price of US$132 million, subject to customary post-closing adjustments and excluding crude oil linefill 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 partnership 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 Andrew Woodward, Chief Executive Officer. “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 US infrastructure."
The total cash consideration for the combined crude oil terminalling, pipeline, and trucking transactions was approximately US$164 million, including estimated crude oil linefill 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 Partnership's revolving credit facility and for general partnership purposes.
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