“We believe the recent investments made in the asphalt terminalling segment will yield strong long-term results and further lessen our reliance on the more volume sensitive crude oil transportation businesses. In fact, those recent investments are performing above our initial expectations,” said BKEP CEO Mark Hurley.

Vitol, one of the largest trading companies in the world, co-owns the general partner of BKEP. Asphalt services was the best-performing business segment at BKEP in the first quarter, followed by crude oil terminalling. Both posted stronger year-on- year operating margins.

Crude pipeline services, and crude trucking and producer field services posted sharp drops in operating margins.

The asphalt terminalling segment reported a strong first quarter, with operating margin, excluding depreciation and amortization, increasing $2.6 million or 30% for the three months ended March 31, 2016 as compared to the same quarter in 2015.

Annual contract escalations and three asphalt terminal acquisitions made in May 2015 and in February 2016 contributed to the increase in operating margin.

Crude oil terminalling and storage operating margin increased 27%, or $1.1 million, year over year. This increase reflects improved contract storage rates negotiated during the second half of 2015.

Decreases in BKEP pipeline and trucking and field services businesses partially offset increases in other segments of the business.

Operating margin for crude pipeline services segment dropped by 77% to $640,000, and operating margin for crude trucking and producer field services fell by 81% to $222,000.

Total volumes on its pipeline systems increased 16% quarter over quarter; however, the first quarter of 2015 results included $2.2 million in revenues attributable to a one-year increased tariff on its East Texas pipeline system that was in effect from June of 2014 through May of 2015.

Volumes and operating margins for our trucking and producer field services segment continue to face challenges due to pressure on trucking and producer field service rates precipitated by the decline in crude oil prices.

BKEP’s adjusted EBITDA increased to $13.6 million for the first quarter of 2016, up from $12.9 million for the same period in 2015. BKEP’s distributable cash flow was $8.6 million for the three months ended March 31, 2016, as compared to $11.0 million for the three months ended March 31, 2015. Net income was $0.7 million on total revenues of $41.0 million for the three months ended March 31, 2016, versus net income of $1.6 million on total revenues of $42.4 million for the same period in 2015.

BKEP owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 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, approximately 240 crude oil transportation and oilfield services vehicles deployed in Kansas, Oklahoma and Texas and approximately 8.2 million barrels of combined asphalt product and residual fuel oil storage located at 45 terminals in 23 states.

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.