Blueknight Energy Partners (NasdaqGM:BKEP) - Share price, News & Analysis

Q: What is the Fair Price of BKEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BKEP ($4.53) is trading below our estimate of [[fair value]] ($7.03)

BKEP fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	5/6
Financial Health	3/6
Dividends	3/6

BKEP Stock Overview

Blueknight Energy Partners, L.P. provides integrated terminalling services for companies engaged in the production, distribution, and handling of liquid asphalt in the United States.

Rewards

Trading at 35.6% below our estimate of its fair value

Earnings grew by 234.1% over the past year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Blueknight Energy Partners Competitors

USD Partners

NYSE:USDP

US$176.0m

Green Plains Partners

NasdaqGM:GPP

US$280.4m

Martin Midstream Partners

NasdaqGS:MMLP

US$152.7m

Dynagas LNG Partners

NYSE:DLNG

US$122.7m

Price History & Performance

Summary of all time highs, changes and price drops for Blueknight Energy Partners
Historical stock prices
Current Share Price	US$4.53
52 Week High	US$4.60
52 Week Low	US$3.00
Beta	1.72
1 Month Change	0%
3 Month Change	36.45%
1 Year Change	19.21%
3 Year Change	287.18%
5 Year Change	-26.94%
Change since IPO	-84.55%

Recent News & Updates

Apr 28

Blueknight Energy Partners Is Being Acquired By Ergon

Ergon is making a cash offer of $4.65 per common unit and $8.75 per Series A Preferred Unit. This appears to be a fair valuation based on Blueknight's expected 2022 adjusted EBITDA. Previous offers appeared to undervalue the common units. Support from only 28% of non-Ergon units is needed for the transaction to be approved. The closing date is expected to be in mid-2022 with an outside date of October 21.

Shareholder Returns

	BKEP	US Oil and Gas	US Market
7D	0.4%	-0.9%	1.7%
1Y	19.2%	37.9%	-20.4%

Return vs Industry: BKEP underperformed the US Oil and Gas industry which returned 34.2% over the past year.

Return vs Market: BKEP exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is BKEP's price volatile compared to industry and market?
BKEP volatility
BKEP Average Weekly Movement	11.0%
Oil and Gas Industry Average Movement	8.8%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: BKEP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: BKEP's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2007	130	Andy Woodward	https://www.bkep.com

Blueknight Energy Partners, L.P. provides integrated terminalling services for companies engaged in the production, distribution, and handling of liquid asphalt in the United States. As of March 1, 2022, it had 54 terminals located in 26 states. Blueknight Energy Partners G.P., L.L.C. operates as a general partner of Blueknight Energy Partners, L.P.

Blueknight Energy Partners Fundamentals Summary

How do Blueknight Energy Partners's earnings and revenue compare to its market cap?
BKEP fundamental statistics
Market Cap	US$195.29m
Earnings (TTM)	US$10.10m
Revenue (TTM)	US$116.80m

18.8x

P/E Ratio

1.6x

P/S Ratio

Is BKEP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKEP income statement (TTM)
Revenue	US$116.80m
Cost of Revenue	US$63.86m
Gross Profit	US$52.95m
Other Expenses	US$42.85m
Earnings	US$10.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.24
Gross Margin	45.33%
Net Profit Margin	8.65%
Debt/Equity Ratio	1,939.0%

How did BKEP perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

68%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BKEP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BKEP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BKEP. This is calculated by dividing BKEP's market cap by their current preferred multiple.
What is BKEP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$195.29m

BKEP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does BKEP's PE Ratio compare to its peers?

BKEP PE Ratio vs Peers

The above table shows the PE ratio for BKEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8.8x
USDP USD Partners	7.7x	35.3%	US$176.0m
GPP Green Plains Partners	7.2x	n/a	US$280.4m
MMLP Martin Midstream Partners	17.8x	n/a	US$152.7m
DLNG Dynagas LNG Partners	2.5x	n/a	US$122.7m
BKEP Blueknight Energy Partners	18.8x	n/a	US$195.3m

Forward PE

Price-To-Earnings vs Peers: BKEP is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (8.8x).

Price to Earnings Ratio vs Industry

How does BKEP's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: BKEP is expensive based on its Price-To-Earnings Ratio (18.8x) compared to the US Oil and Gas industry average (11.9x)

Price to Earnings Ratio vs Fair Ratio

What is BKEP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BKEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate BKEP's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of BKEP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BKEP ($4.53) is trading below our estimate of fair value ($7.03)

Significantly Below Fair Value: BKEP is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BKEP's PEG Ratio to determine if it is good value.

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Future Growth

How is Blueknight Energy Partners forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-6.9%

Forecasted Energy industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Blueknight Energy Partners has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Blueknight Energy Partners's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Blueknight Energy Partners performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

36.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKEP has high quality earnings.

Growing Profit Margin: BKEP's current net profit margins (8.6%) are higher than last year (2.7%).

Past Earnings Growth Analysis

Earnings Trend: BKEP has become profitable over the past 5 years, growing earnings by 36.4% per year.

Accelerating Growth: BKEP's earnings growth over the past year (234.1%) exceeds its 5-year average (36.4% per year).

Earnings vs Industry: BKEP earnings growth over the past year (234.1%) exceeded the Oil and Gas industry 98.5%.

Return on Equity

High ROE: Whilst BKEP's Return on Equity (595.13%) is outstanding, this metric is skewed due to their high level of debt.

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Financial Health

How is Blueknight Energy Partners's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BKEP's short term assets ($12.4M) do not cover its short term liabilities ($18.2M).

Long Term Liabilities: BKEP's short term assets ($12.4M) do not cover its long term liabilities ($126.0M).

Debt to Equity History and Analysis

Debt Level: BKEP's net debt to equity ratio (1921.2%) is considered high.

Reducing Debt: BKEP's debt to equity ratio has reduced from 1961.4% to 1939% over the past 5 years.

Debt Coverage: BKEP's debt is well covered by operating cash flow (39.1%).

Interest Coverage: BKEP's interest payments on its debt are well covered by EBIT (8.4x coverage).

Balance Sheet

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Dividend

What is Blueknight Energy Partners's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.75%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BKEP's dividend (3.75%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: BKEP's dividend (3.75%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: BKEP's dividend payments have been volatile in the past 10 years.

Growing Dividend: BKEP's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (67.9%), BKEP's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (25.3%), BKEP's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure

CEO

Andy Woodward (38 yo)

2yrs

Tenure

US$1,502,845

Compensation

Mr. D. Andrew Woodward, also known as Andy, serves as Chief Executive Officer of Blueknight Energy Partners G.P., L.L.C. at Blueknight Energy Partners, L.P. since June 22, 2020. He served as Interim Chief...

CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD1.50M) is about average for companies of similar size in the US market ($USD1.75M).

Compensation vs Earnings: Andy's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: BKEP's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: BKEP's board of directors are considered experienced (5.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31