Blueknight Declares Quarterly Distributions

OKLAHOMA CITY–(BUSINESS WIRE)–Blueknight Energy Partners, L.P. (NASDAQ: BKEP) (Common Units) (NASDAQ:
BKEPP) (Preferred Units) (“BKEP” or the “Partnership”), announced today
that the board of directors of its general partner has declared a
quarterly cash distribution on the Partnership’s common units of $0.1450
per common unit, unchanged from the Partnership’s first quarter 2017
distribution, as well as a quarterly cash distribution on the
Partnership’s preferred units of $0.17875 per preferred unit. The
distributions are payable on August 14, 2017, on all outstanding common
and preferred units to unitholders of record as of the close of business
on August 4, 2017.

Mark Hurley, Chief Executive Officer, stated, “The board’s decision to
maintain our distributions reflects what we believe is another solid
quarter. We look forward to discussing our results on August 2, 2017.”

Forward-Looking Statements and Treasury Regulation Notice

This release may include forward-looking statements. Statements included
in this release that are not historical facts are forward-looking
statements. Such forward-looking statements are subject to various risks
and uncertainties. These risks and uncertainties include, among other
things, uncertainties relating to the Partnership’s future cash flows
and operations, the Partnership’s ability to pay future distributions,
future market conditions, current and future governmental regulation,
future taxation and other factors discussed in the Partnership’s filings
with the SEC. If any of these risks or uncertainties materializes, or
should underlying assumptions prove incorrect, actual results or
outcomes may vary materially from those expected. The Partnership
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.

This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b) (4) and (d). Brokers and nominees should
treat one hundred percent (100.0%) of BKEP’s distributions to foreign
investors as being attributable to income that is effectively connected
with a United States trade or business. Accordingly, BKEP’s
distributions to foreign investors are subject to federal income tax
withholding at the highest applicable effective tax rate. Nominees, and
not BKEP, are treated as withholding agents responsible for withholding
on the distributions received by them on behalf of foreign investors.

About Blueknight Energy Partners, L.P.

BKEP owns and operates a diversified portfolio of complementary
midstream energy assets consisting of approximately 9.6 million barrels
of combined asphalt product and residual fuel oil storage located at 54
terminals in 26 states, 7.2 million barrels of crude oil storage located
in Oklahoma and Texas, approximately 6.6 million barrels of which are
located at the Cushing, Oklahoma, Interchange, approximately 670 miles
of crude oil pipeline located primarily in Oklahoma and Texas and
approximately 200 crude oil transportation and oilfield services
vehicles deployed in Kansas, Oklahoma and Texas. BKEP provides
integrated services for companies engaged in the production,
distribution and marketing of crude oil, asphalt and other petroleum
products. BKEP is headquartered in Oklahoma City, Oklahoma. For more
information, visit the Partnership’s web site at www.bkep.com.

Contacts

BKEP
Investor Relations, 918-237-4032
[email protected]
or
Media
Contact:
Brent Gooden, 405-715-3232 or 405-818-1900