Tulsa’s Blueknight Energy Partners, L.P. announced it wrapped up its $132 million sale of its crude oil terminalling segment to Enbridge, Inc.
With the completion, Blueknight has exited its crude oil business turning it into 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.
He said with the exit of the crude oil business, it will allow the company to be well positioned to capture growth opportunities.
Total cash consideration for the combined crude oil terminalling, pipeline, and trucking transactions was approximately $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 purpose.
The purchase only expands Enbridge’s operations in Oklahoma where in 2020, the Canadian-based company had more than $33 million in capital spending in the state. It also listed 111 employees at the time in Oklahoma.
Source: Business Wire