Midstream energy player Blueknight Energy Partners LP (BKEP) declared the pricing of 8,500,000 common units. The publicly offered units were priced at $7.61 a piece. The partnership added that it will offer the underwriters a window of 30 days to buy up to 1,275,000 extra units. Depending on customary closing conditions, the unit offering will likely be closed by Sep 22.
Blueknight Energy is likely to utilize the offering’s net proceeds to buy extra common units, for general partnership activities and for repaying some debt.
The partnership added that it will also use the proceeds for financing part of its Eaglebine pipeline development. Last month, Blueknight Energy declared is plan to construct a pipeline, which will transport crude oil from the East Texas Eaglebine resource play to the U.S. Gulf Coast and Houston Ship Channel. Hence, the pipeline − which covers roughly 160 miles – will help the producers of crude in the East Texas Eaglebine resource play to connect with refiners in the Gulf Coast.
Oklahoma City-based Blueknight Energy has a diversified portfolio of midstream assets. The properties include storage terminals at Oklahoma and Texas, having a capacity to store 7.8 million barrels of crude oil. The partnership also has pipeline assets which cover roughly 920 miles.
Blueknight Energy currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. market in the next one to three months.
Meanwhile, one can look at better-ranked players in the energy sector like Ferrellgas Partners LP (FGP), Patterson-UTI Energy Inc. (PTEN) and Pioneer Energy Services Corp. (PES). All these players sport a Zacks Rank #1 (Strong Buy).
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