March 10, 2017 [OPIS] - Blueknight Energy Partners (BKEP) said that its total operating margin, excluding depreciation and amortization, for the fourth quarter 2016 rose by 18% from a year ago to $20.273 million, thanks to stronger performance from asphalt, crude trucking and services, and crude terminaling and storage business segments.
However, crude pipeline services margins in the fourth quarter 2016 were lower. Total operating margin for 2016 was 9% higher than 2015 at $82.993 million.
Operating margin for Asphalt services was up 31% to $15.050 million in the fourth quarter, and crude terminaling and storage margin edged up by 2% to $4.741 million.
Crude pipeline services operating margin dropped by 76% to $453 million, and crude trucking and producer field services operating margin rose by 104% to $29 million.
BKEP’s midstream energy assets consist of approximately 9.6 million bbl of combined asphalt product and residual fuel oil storage located at 54 terminals in 26 states, 7.4 million bbl of crude oil storage located in Oklahoma and Texas, approximately 6.6 million bbl of which are located at the Cushing, Okla., Interchange, approximately 760 miles of crude oil pipeline located primarily in Oklahoma and Texas and approximately 200 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.
The partnership reported net income of $2.0 million on total revenues of $46.0 million for the three months ended Dec. 31, 2016, compared to a net loss of $16.9 million on total revenues of $43.9 million for the same period in 2015. BKEP recorded a net loss of $4.8 million on total revenues of $177.4 million for the 12 months ended Dec. 31, 2016, compared to net income of $6.4 million on total revenues of $180.0 million for the same period in 2015.
The partnership reported operating income of $3.4 million for the three months ended Dec. 31, 2016, compared to an operating loss of $16.8 million for the same period in 2015. BKEP reported operating income of $6.5 million for the 12 months ended Dec. 31, 2016, compared to operating income of $14.0 million for the 12 months ended Dec. 31, 2015.
Operating income for the 12 months ended Dec. 31, 2015 included $8.3 million in income related to the settlement of a 2008 claim and litigation. Net loss and operating income for the 12 months ended Dec. 31, 2016 were impacted by impairment expense of $25.8 million, primarily related to the cancellation of the Knight Warrior East Texas Eaglebine/Woodbine crude oil pipeline project.
BKEP’s adjusted earnings before interest, taxes, depreciation, amortization, non-cash equity-based compensation, asset impairment charges, gains related to investments and fees related to the Ergon transactions (adjusted EBITDA) was $17.1 million for the three months ended Dec. 31, 2016, as compared to $14.1 million for the same period in 2015, an increase of 21%.
Adjusted EBITDA was $69.8 million for the 12 months ended Dec. 31, 2016 compared to $70.1 million for the same period in 2015. Adjusted EBITDA for the 12 months ended Dec. 31, 2015 included a $6.0 million gain related to the settlement of litigation.
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