By a News Reporter-Staff News Editor at Energy Weekly News -- Blueknight Energy Partners, L.P. ("BKEP" or the "Partnership") (NASDAQ: BKEP) (NASDAQ: BKEPP), a midstream energy company focused on providing integrated services for companies engaged in the production, distribution and marketing of crude oil, asphalt and other petroleum products, announced adjusted EBITDA of $13.7 million for the second quarter of 2014 as compared to $15.5 million for the same period in 2013, and $26.2 million for the six months ended June 30, 2014 as compared to $30.4 million for the same period in 2013. Adjusted EBITDA, including a reconciliation of such measure to net income, is explained in the section of this release entitled "Non-GAAP Financial Measures."
The Partnership reported net income of $3.6 million on total revenues from continuing operations of $45.8 million for the three months ended June 30, 2014, compared to net income of $6.2 million on total revenues from continuing operations of $45.7 million for the three months ended June 30, 2013, and net income of $7.5 million on total revenues from continuing operations of $92.2 million for the six months ended June 30, 2014 compared to net income of $12.2 million on total revenues from continuing operations of $90.2 million for the six months ended June 30, 2013.
The Partnership previously announced a second quarter 2014 cash distribution of $0.1325 per common unit, a 1.9% increase over the previous quarter's distribution and a 10.4% increase over the second quarter of 2013's distribution, and a $0.17875 distribution per preferred unit payable on August 14, 2014 on all outstanding common and preferred units to unitholders of record as of the close of business on August 4, 2014. Additional information regarding the Partnership's results of operations will be provided in the Partnership's Quarterly Report on Form 10-Q for the three months and the six months ended June 30, 2014, to be filed with the Securities and Exchange Commission on August 6, 2014.
Comments from BKEP's CEO, Mark Hurley
"Our second quarter results are reflective of continuing downward pressure we and others are experiencing on Cushing storage rates. We expect this condition to persist for some time due to market fundamentals. However, in spite of the decrease in revenue at Cushing, I am pleased to report our overall revenue increased slightly, indicative of growth in our pipeline business. As we have underscored in previous communications, we expect our crude pipeline business to be the major driver of our future growth. To that end, during the second quarter, we achieved record pipeline volumes, inclusive of volumes from the Pecos River Pipeline, and June was the all-time record volume for a single month. Utilization of the Oklahoma mainline system has increased and volumes are ramping up on the West Texas Pecos River pipeline system. We began realizing equity gains relative to our 30% investment in the system during the second quarter and Phase II of the Pecos River pipeline is expected to be online during the third quarter. Trucking volumes remain consistent; however margins have been adversely impacted by revenue mix and length of hauls during the quarter. We have strong growth prospects for the trucking business in the second half of the year."
Keywords for this news article include: Trucking, Transportation, Blueknight Energy Partners L.P..
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