Things are looking up at Blueknight Energy Partners.
The one-time SemGroup Corp. subsidiary has restructured its debt and capital spending since Charles Bank joined Dutch energy trading company Vitol as its sponsor in late 2010, said Alex Stallings, Blueknight's chief financial officer.
“We really right-sized everything with the help of our sponsors,” he said.
Blueknight ranked 10th on this year's Oklahoma Inc. list of the state's top publicly traded companies, fueled by its 133 percent growth in earnings per share.
“Looking toward the future, it's all about growth for us,” Mark Hurley, Blueknight Energy Partners CEO said. “We can't emphasize that enough. We hope to be a larger and larger presence in the midstream business.”
Blueknight's business has stabilized, with some incremental growth from its transportation unit. It was able to pay a distribution to unit holders in 2012 for the first time in about four years.
Blueknight moved its corporate headquarters to Oklahoma City this year, settling into a former car dealership in the historic MidTown district, near downtown. Its accounting, human resources and information technology departments remain in Tulsa, but its senior executives are at 201 NW 10.
“We think Oklahoma City is going to afford us a little better exposure,” Stallings said.
Hurley said Oklahoma City is a logical home for Blueknight since many of its largest customers are here.
Blueknight also has opened an office in Cushing near its crude oil storage terminals.
Nearly half of Blue-knight's business is its asphalt segment, which has 44 liquid asphalt cement terminals and storage facilities across the country. Blueknight is the largest terminal provider in the United States.
Hurley said Blueknight's crude oil business is the one most likely to grow.
“That's really taking off right now,” he said, citing the activity in the Woodford and Granite Wash shale plays in Oklahoma. “Those shale plays are really where the excitement is in the crude business.
“That's where the growth is.”
Hurley said Blueknight likely will follow producers into emerging areas and try to meet their infrastructure needs.
Looking toward the future, it's all about growth for us. We can't emphasize that enough. We hope to be a larger and larger presence in the midstream business.”