BlueKnight Energy Partners (BKEP) Update - May 24

BlueKnight Energy Partners (BKEP) Update - May 24

Postby dan_s » Mon May 24, 2021 7:05 pm

BlueKnight's preferred units (BKEPP) have been in our High Yield Income Portfolio for several years. It pays a fixed dividend of $0.17875/Qtr or $0.715/year.
BKEPP closed at $7.93 on May 27, so annual yield is 9.016%.

BlueKnight sold their oil storage business in Q1 2021 and the cash proceeds paid off more than 60% of the Company's debt.
The balance sheet is now super strong.

BlueKnight is an MLP
The cash distributions on BKEPP are now SUPER SAFE.

I have updated my forecast/valuation model for the common units (BKEP) and posted it to the EPG website. My valuation for BKEP increases from $3.90 to $5.50. BKEP closed at $4.04 on May 24. Cash distributions on BKEP are $0.04/Qtr for annual yield of 3.96%. A decent dividend and lots of capital appreciation upside.

If the Feds pass an infrastructure bill, BlueKnight's asphalt business has a lot of upside. Spend 30 minutes on BlueKnight's website to get the picture on this small-cap niche company.
Dan Steffens
Energy Prospectus Group
dan_s
 
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