Ergon also contributed nine asphalt terminals it previously owned plus $22.1 million of cash to BKEP in return for an aggregate of 18,312,968 Series A preferred units and acquired 847,457 common units for approximately $5.0 million in a private placement.

In addition, BKEP repurchased 13,335,390 of its Series A preferred units previously owned by Blueknight Energy Holding Inc. (Vitol) and CB-Blueknight LLC (Charlesbank Capital Partners or Charlesbank) for approximately $95.3 million.

Vitol and Charlesbank each retained 2,488,789 Series A preferred units. The nine terminals acquired by BKEP from Ergon are located in Wolcott, Kan.; Ennis, Texas; Chandler, Ariz.; Mt. Pleasant, Texas; Pleasanton, Texas; Birmingport, Ala.; Memphis, Tenn.; Nashville, Tenn.; and Yellow Creek, Miss., and include approximately 2.0 million barrels of storage capacity.

In connection with the transactions described above, BKEP entered into a seven-year storage, throughput and handling agreement with Ergon. Under the terms of the agreement, BKEP will provide storage and terminaling services at the nine terminals in exchange for the payment of certain fees by Ergon.

BKEP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 10.2 million barrels of combined asphalt product and residual fuel oil storage located at 54 terminals in 26 states, 7.4 million barrels of crude oil storage located in Oklahoma and Texas, approximately 6.6 million barrels of which are located at the Cushing, Okla., Interchange, approximately 985 miles of crude oil pipeline located primarily in Oklahoma and Texas and approximately 240 crude oil transportation and oilfield services vehicles deployed in Kansas, Oklahoma and Texas.

BKEP provides integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products. BKEP is headquartered in Oklahoma City, Okla.