On April 3, 2017, Advantage Pipeline, L.L.C. (“Advantage”) was acquired by a joint venture formed by affiliates of Plains All American Pipeline, L.P. and Noble Midstream Partners LP. BKEP received cash proceeds at closing from the sale of its approximate 30% equity ownership interest in Advantage of approximately $25.3 million. BKEP expects to receive an additional 10% of the sale proceeds, which are currently being held in escrow, subject to certain post-closing settlement terms and conditions. Any remaining net escrow proceeds are scheduled to be paid out by the end of 2017. BKEP’s initial net proceeds received at closing were used to prepay revolving debt (without a commitment reduction). The operating and administrative services agreement to which BKEP and Advantage were parties and under which BKEP operated the 70-mile, 16-inch Advantage crude oil pipeline, located in the southern Delaware Basin in Texas, was terminated at closing. BKEP and the Plains/Noble joint venture have entered into a short-term transition services agreement under which BKEP will provide certain services.

In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 7.01 is deemed to be furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the federal securities laws. These statements state the current expectations or intentions of BKEP regarding future events, which, by their nature, involve known and unknown risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated above include, among others, risks and uncertainties discussed from time to time in BKEP’s filings with the Securities and Exchange Commission. Any forward-looking statement made by BKEP in this report is based only on information currently available to BKEP and speaks only as of the date on which it is made. BKEP undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.

About BLUEKNIGHT ENERGY PARTNERS, L.P. (NASDAQ:BKEP)

Blueknight Energy Partners, L.P. is a master limited partnership company. The Company provides integrated terminalling, storage, gathering and transportation services for companies engaged in the production, distribution and marketing of crude oil and liquid asphalt cement. It operates in four segments: asphalt terminalling services, which provides asphalt product and residual fuel terminalling, storage and blending services at its terminalling and storage facilities; crude oil terminalling and storage services, which provides crude oil terminalling and storage services at its terminalling and storage facilities; crude oil pipeline services, which owns and operates pipeline systems, the Mid-Continent system, the East Texas system and Eagle North system, that gather crude oil purchased by its customers and transports it to refiners, and crude oil trucking and producer field services, which uses its owned and leased tanker trucks to gather crude oil for its customers.

BLUEKNIGHT ENERGY PARTNERS, L.P. (NASDAQ:BKEP) Recent Trading Information

BLUEKNIGHT ENERGY PARTNERS, L.P. (NASDAQ:BKEP) closed its last trading session 00.00 at 6.65 with 28,694 shares trading hands.