10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from __________ to _________ 

Commission File Number 001-33503

BLUEKNIGHT ENERGY PARTNERS, L.P.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	20-8536826 (IRS Employer Identification No.)
6060 American Plaza, Suite 600 Tulsa, Oklahoma 74135 (Address of principal executive offices, zip code) Registrant’s telephone number, including area code: (918) 237-4000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    ☒    No   ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   ☒   No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐  No ☒

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units	BKEP	The Nasdaq Global Market
Series A Preferred Units	BKEPP	The Nasdaq Global Market

 As of April 29, 2022, there were 34,406,683 Series A Preferred Units and 41,856,847 common units outstanding.
 

Table of Contents

		Page
PART I	FINANCIAL INFORMATION	1
Item 1.	Unaudited Condensed Consolidated Financial Statements	1
	Condensed Consolidated Balance Sheets as of December 31, 2021, and March 31, 2022	1
	Condensed Consolidated Statements of Operations for the Three Months EndedMarch 31, 2021 and 2022	2
	Condensed Consolidated Statements of Changes in Partners’ Capital (Deficit) for the Three Months Ended March 31, 2021 and 2022	3
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2022	4
	Notes to the Unaudited Condensed Consolidated Financial Statements	5
	1. Organization and Nature of Business	5
	2. Basis of Presentation	5
	3. Revenue	5
	4. Discontinued Operations	7
	5. Property, Plant and Equipment	8
	6. Debt	8
	7. Net Income Per Limited Partner Unit	10
	8. Partners’ Capital and Distributions	11
	9. Related-party Transactions	11
	10. Long-Term Incentive Plan	12
	11. Fair Value Measurements	13
	12. Commitments and Contingencies	14
	13. Recently Issued Accounting Standards	14
	14. Subsequent Events	14
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20
PART II	OTHER INFORMATION	21
Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 2.	Unregistered Sales of Equity Securities	21
Item 6.	Exhibits	22

i

PART I. FINANCIAL INFORMATION

Item 1.    Unaudited Condensed Consolidated Financial Statements

BLUEKNIGHT ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

	As of			As of
	December 31, 2021			March 31, 2022
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,172		$	1,052
Accounts receivable, net		2,989			4,938
Receivables from related parties, net		369			615
Other current assets		3,112			5,815
Current assets of discontinued operations		2			-
Total current assets		7,644			12,420
Property, plant and equipment, net of accumulated depreciation of $204,101 and $206,495 at December 31, 2021, and March 31, 2022, respectively		106,389			116,028
Goodwill		6,728			6,728
Debt issuance costs, net		2,854			2,652
Operating lease assets		7,855			7,539
Intangible assets, net		5,088			4,088
Other noncurrent assets		340			735
Total assets	$	136,898		$	150,190
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	2,105		$	2,627
Accounts payable to related parties		1,047			2,023
Accrued interest payable		250			293
Accrued property taxes payable		1,660			1,618
Unearned revenue		1,932			2,799
Unearned revenue with related parties		4,875			1,619
Accrued payroll		4,782			1,789
Current operating lease liability		1,418			1,383
Other current liabilities		1,711			4,074
Current liabilities of discontinued operations		240			-
Total current liabilities		20,020			18,225
Long-term unearned revenue with related parties		4,390			4,351
Other long-term liabilities		228			289
Noncurrent operating lease liability		6,703			6,394
Long-term debt		98,000			115,000
Commitments and contingencies (Note 12)
Partners’ capital (deficit):
Common unitholders (41,550,681 and 41,856,847 units issued and outstanding at December 31, 2021, and March 31, 2022, respectively)		390,310			388,702
Preferred unitholders (34,406,683 units issued and outstanding at both dates)		248,729			248,729
General partner interest (1.6% interest with 1,225,409 general partner units outstanding at both dates)		(631,482	)		(631,500	)
Total partners’ capital		7,557			5,931
Total liabilities and partners’ capital	$	136,898		$	150,190

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

1

BLUEKNIGHT ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per unit data)

	Three Months Ended March 31,
	2021			2022
Service revenue:
Third-party revenue	$	6,919		$	7,606
Related-party revenue		4,849			5,121
Lease revenue:
Third-party revenue		8,303			8,487
Related-party revenue		7,004			7,246
Total revenue		27,075			28,460
Costs and expenses:
Operating expense		15,880			17,576
General and administrative expense		3,982			3,371
Loss on disposal of assets		-			24
Total costs and expenses		19,862			20,971
Operating income		7,213			7,489
Other income (expenses):
Other income		233			127
Interest expense		(1,333	)		(964	)
Income before income taxes		6,113			6,652
Provision for income taxes		10			10
Income from continuing operations		6,103			6,642
Income from discontinued operations, net		75,550			-
Net income	$	81,653		$	6,642
Allocation of net income for calculation of earnings per unit:
General partner interest in net income	$	1,292		$	105
Preferred interest in net income	$	6,341		$	6,150
Net income available to limited partners	$	74,020		$	387
Basic and diluted net income from discontinued operations per common unit	$	1.75		$	-
Basic and diluted net income (loss) from continuing operations per common unit	$	(0.01	)	$	0.01
Basic and diluted net income per common unit	$	1.74		$	0.01
Weighted average common units outstanding - basic and diluted		41,430			41,817

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

2

BLUEKNIGHT ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

(in thousands)

	Common Unitholders			Series A Preferred Unitholders			General Partner Interest			Total Partners’ Capital (Deficit)
	(unaudited)
Balance, December 31, 2020	$	312,591		$	253,923		$	(632,737	)	$	(66,223	)
Net income		73,896			6,465			1,292			81,653
Equity-based incentive compensation		(80	)		-			3			(77	)
Repurchase of preferred units		-			(5,163	)		-			(5,163	)
Distributions		(1,700	)		(6,279	)		(128	)		(8,107	)
Proceeds from sale of 32,696 common units pursuant to the Employee Unit Purchase Plan		48			-			-			48
Balance, March 31, 2021	$	384,755		$	248,946		$	(631,570	)	$	2,131
Balance, December 31, 2021	$	390,310		$	248,729		$	(631,482	)	$	7,557
Net income		386			6,150			106			6,642
Equity-based incentive compensation		245			-			4			249
Distributions		(1,827	)		(6,150	)		(128	)		(8,105	)
Proceeds from sale of 25,772 common units pursuant to the Employee Unit Purchase Plan		77			-			-			77
Other		(489	)		-			-			(489	)
Balance, March 31, 2022	$	388,702		$	248,729		$	(631,500	)	$	5,931

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

BLUEKNIGHT ENERGY PARTNERS, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended March 31,
	2021			2022
	(unaudited)
Cash flows from operating activities:
Net income	$	81,653		$	6,642
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,065			3,397
Amortization and write-off of debt issuance costs		391			209
Tangible asset impairment charge		156			-
(Gain) loss on disposal of assets		(75,069	)		24
Equity-based incentive compensation		(77	)		249
Changes in assets and liabilities:
Decrease (increase) in accounts receivable		10,022			(1,948	)
Increase in receivables from related parties		(157	)		(246	)
Decrease (increase) in other current assets		1,630			(1,202	)
Decrease (increase) in other non-current assets		379			(80	)
Increase in accounts payable		412			381
Increase (decrease) in payables to related parties		(17	)		38
Decrease in accrued crude oil purchases		(3,868	)		-
Decrease in accrued crude oil purchases to related parties		(8,842	)		-
Increase in accrued interest payable		5			43
Decrease in accrued property taxes		(743	)		(273	)
Increase (decrease) in unearned revenue		(373	)		918
Decrease in unearned revenue from related parties		(227	)		(3,545	)
Decrease in accrued payroll		(3,822	)		(3,002	)
Increase (decrease) in other accrued liabilities		860			(572	)
Net cash provided by operating activities		5,378			1,033
Cash flows from investing activities:
Capital expenditures		(2,044	)		(9,600	)
Net proceeds (costs) of asset disposal		155,316			(24	)
Net cash provided by (used in) investing activities		153,272			(9,624	)
Cash flows from financing activities:
Payments on other financing activities		(171	)		(501	)
Debt issuance costs		(49	)		-
Borrowings under credit agreement		48,000			28,000
Payments under credit agreement		(194,000	)		(11,000	)
Proceeds from equity issuance		48			77
Repurchase of preferred units		(5,163	)		-
Distributions		(8,107	)		(8,105	)
Net cash provided by (used in) financing activities		(159,442	)		8,471
Net decrease in cash and cash equivalents		(792	)		(120	)
Cash and cash equivalents at beginning of period		805			1,172
Cash and cash equivalents at end of period	$	13		$	1,052
Supplemental disclosure of non-cash financing and investing cash flow information:
Non-cash changes in property, plant and equipment	$	(74	)	$	2,434
Increase in accrued liabilities related to insurance premium financing agreement	$	1,208		$	-

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 

4

BLUEKNIGHT ENERGY PARTNERS, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION AND NATURE OF BUSINESS

Blueknight Energy Partners, L.P. and subsidiaries (collectively, the “Partnership”) is a publicly traded master limited partnership with operations in 26 states. The Partnership provides integrated terminalling services for companies engaged in the production, distribution, and marketing of liquid asphalt. The Partnership manages its operations through one operating segment, asphalt terminalling services. The Partnership’s common units and preferred units, which represent limited partnership interests in the Partnership, are listed on the Nasdaq Global Market under the symbols “BKEP” and “BKEPP,” respectively. The Partnership was formed in February 2007 as a Delaware master limited partnership.

The Partnership previously provided integrated terminalling, gathering, and transportation services for companies engaged in the production, distribution, and marketing of crude oil in three different operating segments: (i) crude oil terminalling services, (ii) crude oil pipeline services, and (iii) crude oil trucking services. On December 21, 2020, the Partnership announced it had entered into multiple definitive agreements to sell these segments. These transactions closed in February and March of 2021. These segments are presented as discontinued operations for all periods presented. Unless otherwise noted, information in these notes to the consolidated financial statements relates to continuing operations. As the Partnership is only operating through one operating segment, a segment footnote is no longer required.

2. BASIS OF PRESENTATION

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated balance sheet as of March 31, 2022, the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2022, the condensed consolidated statements of changes in partners’ capital (deficit) for the three months ended March 31, 2021 and 2022, and the condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2022, are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary to state fairly the financial position and results of operations for the respective interim periods. All adjustments are of a recurring nature unless otherwise disclosed herein. The 2021 year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2022 (the “2021 Form 10-K”). Interim financial results are not necessarily indicative of the results to be expected for an annual period. The Partnership’s significant accounting policies are consistent with those disclosed in Note 3 of the Notes to Consolidated Financial Statements in its 2021 Form 10-K.

3. REVENUE

The Partnership recognizes revenue from contracts with customers as well as lease revenue. The following table includes revenue associated with contractual commitments in place related to future performance obligations as of the end of the reporting period, which are expected to be recognized in revenue in the specified periods (in thousands):

	Revenue from Contracts with Customers(1)		Revenue from Leases		Total
Remainder of 2022	$	30,529	$	45,549	$	76,078
2023		36,739		53,125		89,864
2024		36,009		52,337		88,346
2025		33,801		46,268		80,069
2026		24,753		30,670		55,423
Thereafter		23,639		33,902		57,541
Total revenue related to future performance obligations	$	185,470	$	261,851	$	447,321

___________________

(1) Excluded from the table is revenue that is either constrained or related to performance obligations that are wholly unsatisfied as of March 31, 2022.

5

 

Disaggregation of Revenue

Disaggregation of revenue from contracts with customers and lease revenue by revenue type is presented as follows (in thousands):

	Three Months Ended March 31, 2021
	Revenue from contracts with customers				Lease revenue
	Third-party revenue		Related-party revenue		Third-party revenue		Related-party revenue		Total
Fixed storage and throughput revenue	$	5,064	$	4,721	$	-	$	-	$	9,785
Fixed lease revenue		-		-		7,801		6,785		14,586
Variable cost recovery revenue		1,735		128		502		219		2,584
Variable throughput and other revenue		120		-		-		-		120
Total	$	6,919	$	4,849	$	8,303	$	7,004	$	27,075

	Three Months Ended March 31, 2022
	Revenue from contracts with customers				Lease revenue
	Third-party revenue		Related-party revenue		Third-party revenue		Related-party revenue		Total
Fixed storage and throughput revenue	$	5,186	$	4,861	$	-	$	-	$	10,047
Fixed lease revenue		-		-		8,122		6,988		15,110
Variable cost recovery revenue		2,313		260		363		258		3,194
Variable throughput and other revenue		107		-		2		-		109
Total	$	7,606	$	5,121	$	8,487	$	7,246	$	28,460

Contract Balances

Accounts receivable from contracts with customers were $2.2 million and $2.1 million at December 31, 2021, and March 31, 2022, respectively. Contract assets were $2.0 million at March 31, 2022, and were immaterial at December 31, 2021.

The Partnership records unearned revenues when cash payments are received in advance of performance. Unearned revenue related to contracts with customers was $3.4 million and $2.5 million at  December 31, 2021, and March 31, 2022, respectively. For the three months ended March 31, 2022, the Partnership recognized $1.6 million of revenues that were previously included in the unearned revenue balance.

Practical Expedients and Exemptions

The Partnership does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less.

6

 

4. DISCONTINUED OPERATIONS

On December 21, 2020, the Partnership announced that it entered into agreements to sell its crude oil trucking services, crude oil pipeline services, and crude oil terminalling services segments. These segments are reported as discontinued operations in the results of operations and financial position for all periods presented. The crude oil trucking services agreement closed in two phases, one on December 15, 2020, and one on February 2, 2021. The crude oil pipeline services agreement closed on February 1, 2021. Loss recognized on the classification of held for sale and disposal of these assets was recorded in the year ended  December 31, 2020. The transaction related to the crude oil terminalling services segment closed on March 1, 2021. The Partnership has allocated interest to discontinued operations on debt that was required to be repaid as a result of the sales of the crude oil pipeline and terminalling services segments for the three months ended March 31, 2021.

As part of the crude oil pipeline sale, $1.2 million of the gross sale proceeds are currently being held in escrow, subject to post-closing settlement terms and conditions. The Partnership expects to receive the majority of this in increments over the two years following the date of sale.

Exit and disposal costs related to these sales, in the form of employee severance payments, totaled $1.9 million. The Partnership provided limited transition services to both of the buyers of the crude oil pipeline and terminalling services segments, with the final transition services being completed during the third quarter of 2021. The contracts were designed to recover the costs of providing services, so there is minimal income statement impact for these services.

Assets and Liabilities of Discontinued Operations (in thousands)	As of December 31, 2021
	Crude Oil Trucking Services		Crude Oil Pipeline Services		Crude Oil Terminalling Services		Total
ASSETS
Other assets		-		1		1		2
Total assets of discontinued operations	$	-	$	1	$	1	$	2
LIABILITIES
Current liabilities	$	12	$	218	$	10	$	240
Total liabilities of discontinued operations	$	12	$	218	$	10	$	240

Statement of Operations for Discontinued Operations (in thousands)		Three Months Ended March 31, 2021
	Crude Oil Trucking Services			Crude Oil Pipeline Services			Crude Oil Terminalling Services			Total
Revenue:
Third-party service revenue	$	9		$	413		$	3,643		$	4,065
Intercompany service revenue		409			-			-			409
Third-party product sales revenue		-			15,591			-			15,591
Costs and expenses:
Operating expense		1,333			1,438			910			3,681
Intercompany operating expense		-			409			-			409
Cost of product sales		-			4,994			-			4,994
Cost of product sales from related party		-			9,461			-			9,461
General and administrative expense		59			118			-			177
Tangible asset impairment expense		92			41			23			156
Gain on disposal of assets		(3	)		(1,694	)		(73,372	)		(75,069	)
Interest expense		-			72			634			706
Income (loss) before income taxes		(1,063	)		1,165			75,448			75,550
Provision for income taxes		-			-			-			-
Net income (loss) from discontinued operations	$	(1,063	)	$	1,165		$	75,448		$	75,550

Select cash flow information (in thousands)
	Crude Oil Trucking Services		Crude Oil Pipeline Services		Crude Oil Terminalling Services		Total
	Three Months Ended March 31, 2021
Amortization	$	3	$	14	$	15	$	32
Capital expenditures	$	-	$	10	$	109	$	119

7

 

5. PROPERTY, PLANT AND EQUIPMENT

	Estimated Useful		December 31,			March 31,
	Lives (Years)		2021			2022
			(dollars in thousands)
Land		N/A	$	21,826		$	23,313
Land improvements		10-20		5,125			5,145
Storage and terminal facilities		10-35		257,433			262,453
Office property and equipment and other		3-30		21,751			22,529
Construction-in-progress		N/A		4,355			9,083
Property, plant and equipment, gross				310,490			322,523
Accumulated depreciation				(204,101	)		(206,495	)
Property, plant and equipment, net			$	106,389		$	116,028

Capital expenditures for the three months ended March 31, 2022, include an asphalt terminal and industrial park acquisition that closed in January 2022 and costs related to an expansion project at an existing terminal.

6. DEBT

On May 26, 2021, the Partnership entered into an amended and restated credit agreement with a revolving loan facility of $300.0 million. As of  April 29, 2022, approximately $110.0 million of revolver borrowings and $0.6 million of letters of credit were outstanding under the credit agreement, leaving the Partnership with approximately $189.4 million available capacity for additional revolver borrowings and letters of credit under the credit agreement, although the Partnership’s ability to borrow such funds is limited by the financial covenants in the credit agreement. The proceeds of loans made under the credit agreement may be used for working capital and other general corporate purposes of the Partnership.

The credit agreement is guaranteed by all of the Partnership’s existing subsidiaries. Obligations under the credit agreement are secured by first priority liens on substantially all of the Partnership’s assets and those of the guarantors.

The credit agreement includes procedures for additional financial institutions to become revolving lenders, or for any existing lender to increase its revolving commitment thereunder, subject to an aggregate maximum of $450.0 million for all revolving loan commitments under the credit agreement.

The credit agreement will mature on May 26, 2025, and all amounts outstanding under the credit agreement will become due and payable on such date. The credit agreement requires mandatory prepayments of amounts outstanding thereunder with the net proceeds of certain asset sales, property or casualty insurance claims and condemnation proceedings, unless the Partnership reinvests such proceeds in accordance with the credit agreement, but these mandatory prepayments will not require any reduction of the lenders’ commitments under the credit agreement.

Borrowings under the credit agreement bear interest, at the Partnership’s option, at either the reserve-adjusted eurodollar rate (as defined in the credit agreement) (“eurodollar rate”) plus an applicable margin that ranges from 2.0% to 3.25% or the alternate base rate (the highest of the agent bank’s prime rate, the federal funds effective rate plus 0.5%, and the 30-day eurodollar rate plus 1.0%) plus an applicable margin that ranges from 1.0% to 2.25%. The Partnership pays a per annum fee on all letters of credit issued under the credit agreement, which fee equals the applicable margin for loans accruing interest based on the eurodollar rate, and the Partnership pays a commitment fee ranging from 0.375% to 0.5% on the unused commitments under the credit agreement. The applicable margins for the Partnership’s interest rate, the letter of credit fee and the commitment fee vary quarterly based on the Partnership’s consolidated total leverage ratio (as defined in the credit agreement, being generally computed as the ratio of consolidated total debt to consolidated earnings before interest, taxes, depreciation, amortization, and certain other non-cash charges).

The credit agreement includes financial covenants that are tested on a quarterly basis, based on the rolling four-quarter period that ends on the last day of each fiscal quarter.

Prior to the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million, the maximum permitted consolidated total leverage ratio is 4.75 to 1.00; provided that the maximum permitted consolidated total leverage ratio may be increased to 5.25 to 1.00 for certain quarters, based on the occurrence of a specified acquisition (as defined in the credit agreement, but generally being an acquisition for which the aggregate consideration is $15.0 million or more).

From and after the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million, the maximum permitted consolidated total leverage ratio is 5.00 to 1.00; provided that from and after the fiscal quarter ending immediately preceding the fiscal quarter in which a specified acquisition occurs to and including the last day of the second full fiscal quarter following the fiscal quarter in which such acquisition occurred, the maximum permitted consolidated total leverage ratio will be 5.50 to 1.00.

8

 

The maximum permitted consolidated senior secured leverage ratio (as defined in the credit agreement, but generally computed as the ratio of consolidated total secured debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) is 3.50 to 1.00, but this covenant is only tested from and after the date on which the Partnership issues qualified senior notes in an aggregate principal amount (when combined with all other qualified senior notes previously or concurrently issued) that equals or exceeds $200.0 million.

The minimum permitted consolidated interest coverage ratio (as defined in the credit agreement, but generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest expense) is 2.50 to 1.00.In addition, the credit agreement contains various covenants that, among other restrictions, limit the Partnership’s ability to:

• create, issue, incur or assume indebtedness;

• create, incur or assume liens;

• consummate mergers or acquisitions;

• sell, transfer, assign or convey assets;

• repurchase the Partnership’s equity, make distributions to unitholders, and make certain other restricted payments;

• make investments;

• modify the terms of certain indebtedness, or prepay certain indebtedness;

• engage in transactions with affiliates;

• enter into certain hedging contracts;

• enter into certain burdensome agreements;

• change the nature of the Partnership’s business; and

• make certain amendments to the Fourth Amended and Restated Agreement of Limited Partnership of the Partnership (the “Partnership’s partnership agreement”).

At  March 31, 2022, the Partnership’s consolidated total leverage ratio was  2.17 to 1.00 and the consolidated interest coverage ratio was 16.66 to 1.00. The Partnership was in compliance with all covenants of its credit agreement as of  March 31, 2022. B ased on current operating plans and forecasts, the Partnership expects to remain in compliance with all covenants of the credit agreement for at least the next year.

The credit agreement permits the Partnership to make quarterly distributions of available cash (as defined in the Partnership’s partnership agreement) to unitholders so long as, on a pro forma basis after giving effect to such distributions, the Partnership is in compliance with its financial covenants under the credit agreement and no default or event of default exists under the credit agreement. Additionally, the credit agreement permits the Partnership to repurchase up to an aggregate of $40.0 million of its units (including preferred units), up to $10.0 million for each calendar year, so long as, on a pro forma basis after giving effect to such repurchases, the Partnership’s total leverage ratio is less than 4.00 to 1.00, no default or event of default exists under the credit agreement, and availability under the revolving credit facility is at least 20% of the total commitments thereunder.

In addition to other customary events of default, the credit agreement includes an event of default if:

(i) the general partner ceases to own 100% of the Partnership’s general partner interest or ceases to control the Partnership;

(ii) Ergon ceases to own and control 50% or more of the membership interests of the general partner; or

(iii) during any period of 12 consecutive months, a majority of the members of the Board of the general partner ceases to be composed of individuals:

(A) who were members of the Board on the first day of such period;

(B) whose election or nomination to the Board was approved by individuals referred to in clause (A) above constituting at the time of such election or nomination at least a majority of the Board; or

(C) whose election or nomination to the Board was approved by individuals referred to in clauses (A) and (B) above constituting at the time of such election or nomination at least a majority of the Board, provided that any changes to the composition of individuals serving as members of the Board approved by Ergon will not cause an event of default.

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If an event of default relating to bankruptcy or other insolvency events occurs with respect to the general partner or the Partnership, all indebtedness under the credit agreement will immediately become due and payable. If any other event of default exists under the credit agreement, the lenders may accelerate the maturity of the obligations outstanding under the credit agreement and exercise other rights and remedies. In addition, if any event of default exists under the credit agreement, the lenders may commence foreclosure or other actions against the collateral.

If any default occurs under the credit agreement, or if the Partnership is unable to make any of the representations and warranties in the credit agreement, the Partnership will be unable to borrow funds or to have letters of credit issued under the credit agreement. 

The following table sets forth financial information pertaining to the credit agreement (in thousands, except for interest rate):

	Three Months Ended March 31,
	2021			2022
Debt issuance costs capitalized	$	49		$	8
Write off of debt issuance costs due to amendments(1)		147			-
Interest expense related to amortization of debt issuance costs		244			209
Credit facility interest expense(2)		942			779
Weighted average interest rate under credit facility(2)		3.83	%		3.69	%

___________________

(1)	On  January 8, 2021, the previous credit facility was amended to, among other things, reduce the revolving loan facility from $400.0 million to $350.0 million upon the sale of the crude oil terminalling segment.
(2)	Excludes interest expense related to amortization and write off of debt issuance costs for the three months ending March 31, 2021.

7. NET INCOME PER LIMITED PARTNER UNIT

For purposes of calculating earnings per unit, preferred units, general partner units, and common units are first allocated net income to the extent they receive a distribution. Next, the excess of distributions over earnings or excess of earnings over distributions for each period are allocated to the Partnership’s general partner based on the general partner’s ownership interest at the time. For the three months ended March 31, 2022, the preferred units were also allocated income for the excess consideration paid over carrying value for the repurchase of preferred units. The remainder is allocated to common units. The following sets forth the computation of basic and diluted net income per common unit (in thousands, except per unit data): 

	Three Months Ended March 31,
	2021			2022
Net income	$	81,653		$	6,642
General partner interest in net income		1,292			105
Preferred interest in net income		6,341			6,150
Net income available to limited partners	$	74,020		$	387
Basic weighted average number of units:
Common units		41,430			41,817
Restricted and phantom units		1,166			1,279
Total units		42,596			43,096
Basic and diluted net income from discontinued operations per common unit	$	1.75		$	-
Basic and diluted net income (loss) from continuing operations per common unit	$	(0.01	)	$	0.01
Basic and diluted net income per common unit	$	1.74		$	0.01

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8. PARTNERS’ CAPITAL AND DISTRIBUTIONS

During the three months ended March 31, 2021, the Partnership repurchased a total of 688,417 outstanding preferred units at $7.50 per unit or total cash consideration of $5.2 million. The consideration paid was based on the fair market value of the units at the time of purchase. The carrying value of the units was $7.23 per unit. The preferred units were allocated additional net income for the three months ended March 31, 2021, of $0.2 million for the consideration paid in excess of carrying value. All repurchased units were subsequently retired.

On April 26, 2022, the Board approved a cash distribution of $0.17875 per outstanding preferred unit for the three months ended March 31, 2022. The Partnership will pay this distribution on May 13, 2022, to unitholders of record as of May 6, 2022. The total distribution will be approximately $6.2 million, with approximately $6.2 million and $0.1 million to be paid to the Partnership’s preferred unitholders and general partner, respectively.

In addition, the Board approved a cash distribution of $0.0425 per outstanding common unit for the three months ended March 31, 2022. The Partnership will pay this distribution on May 13, 2022, to unitholders of record on May 6, 2022. The total distribution will be approximately $1.9 million, with approximately $1.8 million to be paid to the Partnership’s common unitholders, less than $0.1 million to be paid to the general partner, and approximately $0.1 million to be paid to holders of phantom and restricted units pursuant to awards granted under the Partnership’s Long-Term Incentive Plan.

9. RELATED-PARTY TRANSACTIONS

The Partnership leases asphalt facilities and provides asphalt terminalling services to Ergon. For the three months ended March 31, 2021 and 2022, the Partnership recognized related-party revenues of $11.9 million and $12.4 million, respectively, for services provided to Ergon. As of December 31, 2021, and March 31, 2022, the Partnership had receivables from Ergon of $0.4 million and $0.6 million, respectively. As of December 31, 2021, and March 31, 2022, the Partnership had unearned revenues from Ergon of $9.3 million and $6.0 million, respectively, which primarily relates to cash received in advance for the following month's lease and storage fees, and capital project reimbursements and deductibles that are being recognized straight-line over the term of the existing revenue contracts. 

Ergon also provides certain operations and maintenance services to certain of the Partnership's asphalt facilities that have existing revenue contracts between the parties. For the three months ended March 31, 2021 and 2022, the Partnership recognized operating expense of $4.6 million and $4.8 million, respectively, for these services. 

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10. LONG-TERM INCENTIVE PLAN

In July 2007, the general partner adopted the Long-Term Incentive Plan (the “LTIP”), which is administered by the compensation committee of the Board. The Partnership’s unitholders have approved 8.1 million common units to be reserved for issuance under the incentive plan, subject to adjustments for certain events. Although other types of awards are contemplated under the LTIP, currently outstanding awards include “phantom” units, which convey the right to receive common units upon vesting, and “restricted” units, which are grants of common units restricted until the time of vesting. The phantom unit awards also include distribution equivalent rights (“DERs”).

Subject to applicable earning criteria, a DER entitles the grantee to a cash payment equal to the cash distribution paid on an outstanding common unit prior to the vesting date of the underlying award. Recipients of restricted and phantom units are entitled to receive cash distributions paid on common units during the vesting period which are reflected initially as a reduction of partners’ capital. Distributions paid on units which ultimately do not vest are reclassified as compensation expense. Awards granted to date are equity awards and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period.

Each year, restricted common units are granted to the independent directors that may or may not have vesting requirements. In December 2021, the directors received a total of 21,228 units with a grant date fair value of $3.26 per unit and a total grant date fair value of $0.1 million, that do not have a vesting requirement. The following table includes information on outstanding grants made to the directors under the LTIP that vest in one-third increments over three years:

Grant Date	Number of Units		Weighted Average Grant Date Fair Value(1)		Grant Date Total Fair Value (in thousands)
December 2019		7,500	$	1.07	$	8
December 2020		7,500	$	2.06	$	15
December 2021		22,743	$	3.26	$	74

(1) Fair value is the closing market price on the grant date of the awards.

The Partnership also grants phantom units to employees. These grants are equity awards under ASC 718 – Stock Compensation and, accordingly, the fair value of the awards as of the grant date is expensed over the vesting period. All grants made in 2019, 2020 and 2021 vest after three years. The grant made in 2022 vests in one-third increments over three years. The following table includes information on the outstanding grants:

Grant Date	Number of Units		Weighted Average Grant Date Fair Value(1)		Grant Date Total Fair Value (in thousands)
June 2019		46,168	$	1.08	$	50
March 2020		600,396	$	0.90	$	540
October 2020		16,339	$	1.53	$	25
March 2021		530,435	$	2.71	$	1,437
March 2022		558,411	$	3.25	$	1,815

(1) Fair value is the closing market price on the grant date of the awards.

The unrecognized estimated compensation cost of outstanding phantom and restricted units at March 31, 2022, was $3.0 million, which will be expensed over the remaining vesting period.

The Partnership’s equity-based incentive compensation expense for the three months ended March 31, 2021 and 2022, was $0.1 million and $0.2 million, respectively .

Activity pertaining to phantom and restricted common unit awards granted under the LTIP was as follows:

	Number of Units		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2021		1,555,290	$	1.66
Granted		558,411	$	3.25
Vested		426,297	$	1.14
Nonvested at March 31, 2022		1,687,404	$	2.30

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11. FAIR VALUE MEASUREMENTS

The Partnership uses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost) to value assets and liabilities required to be measured at fair value, as appropriate. The Partnership uses an exit price when determining the fair value. The exit price represents amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.

The Partnership utilizes a three-tier fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

Level 1 Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 Inputs other than quoted prices that are observable for these assets or liabilities, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3 Unobservable inputs in which there is little market data, which requires the reporting entity to develop its own assumptions.

This hierarchy requires the use of observable market data, when available, to minimize the use of unobservable inputs when determining fair value.

As of December 31, 2021, and  March 31, 2022, the Partnership had no recurring financial assets or liabilities subject to fair value measurement.

Fair Value of Other Financial Instruments

The following disclosure of the estimated fair value of financial instruments is made in accordance with accounting guidance for financial instruments. The Partnership has determined the estimated fair values by using available market information and valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions or valuation methodologies may have a material effect on the estimated fair value amounts.

At March 31, 2022, the carrying values on the unaudited condensed consolidated balance sheets for cash and cash equivalents (classified as Level 1), accounts receivable, and accounts payable approximate their fair value because of their short-term nature.

Based on the borrowing rates currently available to the Partnership for credit agreement debt with similar terms and maturities and consideration of the Partnership’s non-performance risk, long-term debt associated with the Partnership’s credit agreement at March 31, 2022, approximates its fair value. The fair value of the Partnership’s long-term debt was calculated using observable inputs (eurodollar rate for the risk-free component) and unobservable company-specific credit spread information. As such, the Partnership considers this debt to be Level 3.

13

 

12. COMMITMENTS AND CONTINGENCIES

The Partnership is from time to time subject to various legal actions and claims incidental to its business. Management believes that these legal proceedings will not have a material adverse effect on the financial position, results of operations or cash flows of the Partnership. Once management determines that information pertaining to a legal proceeding indicates that it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated, an accrual is established equal to its estimate of the likely exposure. As part of the consideration for the purchase of the asphalt terminal during the three months ended March 31, 2022, the Partnership assumed environmental liabilities of approximately $2.0 million related to consent orders with a state regulatory agency. The assumption of the environmental liabilities had no impact on the statement of operations, and actual costs are not expected to vary significantly from the current accrual.

The Partnership has contractual obligations to perform dismantlement and removal activities in the event that some of its asphalt product and residual fuel oil terminalling and storage assets are abandoned. These obligations include varying levels of activity including completely removing the assets and returning the land to its original state. The Partnership has determined that the settlement dates related to the retirement obligations are indeterminate. The assets with indeterminate settlement dates have been in existence for many years and with regular maintenance will continue to be in service for many years to come. Also, it is not possible to predict when demands for the Partnership’s terminalling and storage services will cease, and the Partnership does not believe that such demand will cease for the foreseeable future. Accordingly, the Partnership believes the date when these assets will be abandoned is indeterminate. With no reasonably determinable abandonment date, the Partnership cannot reasonably estimate the fair value of the associated asset retirement obligations. Management believes that if the Partnership’s asset retirement obligations were settled in the foreseeable future the present value of potential cash flows that would be required to settle the obligations based on current costs are not material. The Partnership will record asset retirement obligations for these assets in the period in which sufficient information becomes available for it to reasonably determine the settlement dates.

13. RECENTLY ISSUED ACCOUNTING STANDARDS

There have been no new accounting pronouncements that have become effective or have been issued during the three months ended March 31, 2022, that are of significance or potential significance to the Partnership.

14. SUBSEQUENT EVENTS

Merger Agreement

On October 8, 2021, Ergon filed an amendment to its Schedule 13D with the SEC disclosing that Ergon made a non-binding proposal to the Board, pursuant to which Ergon would acquire all the outstanding common units and Preferred Units of the Partnership not already owned by Ergon and its affiliates.

       On April 21, 2022, the Partnership, the General Partner, Ergon Asphalt & Emulsions, Inc. (“Parent”) and Merle, LLC (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as a wholly owned subsidiary of Parent (the “Merger”).

       Under the terms of the Merger Agreement, at the effective time of the Merger, (i) each issued and outstanding common unit representing a limited partner interest in the Partnership (each, a “Common Unit”) other than Common Units owned by Parent, the Partnership and their subsidiaries will be converted into the right to receive $4.65 in cash without any interest thereon (the “Common Unit Merger Consideration”), and (ii) each issued and outstanding Series A Preferred Unit of the Partnership (each, a “Preferred Unit”), other than Preferred Units owned by Parent, the Partnership and their subsidiaries will be converted into the right to receive $8.75 in cash without any interest thereon (the “Preferred Unit Merger Consideration” and, together with the Common Unit Merger Consideration, the “Merger Consideration”). In connection with the Merger, (i) the General Partner’s non-economic general partner interest in the Partnership, (ii) the incentive distribution rights held by the General Partner and (iii) the Common Units and the Preferred Units owned by Parent and its subsidiaries, in each case, will not be cancelled, will not be converted into the right to receive the Merger Consideration and will remain outstanding following the Merger.

       Immediately prior to the effective time of the Merger, all restricted units and phantom units outstanding immediately prior to the effective time will fully vest, and each holder of such units will receive an amount equal to the Merger Consideration with respect to each such unit that becomes vested pursuant to the terms of the Merger Agreement.

       The Partnership has entered into a Support Agreement, dated as of April 21, 2022 (the “Support Agreement”), with Parent, pursuant to which Parent has agreed to vote the Covered Units (as defined in the Support Agreement) it beneficially owns in favor of the Merger Agreement and the transactions contemplated thereby, including the Merger.

       The Merger is subject to customary closing conditions, including approval of the unitholders. 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

As used in this quarterly report, unless we indicate otherwise: (1) “Blueknight,” “our,” “we,” “us” and similar terms refer to Blueknight Energy Partners, L.P., together with its subsidiaries, (2) our “General Partner” refers to Blueknight Energy Partners G.P., L.L.C., and (3) “Ergon” refers to Ergon, Inc., its affiliates and subsidiaries (other than our General Partner and us). The following discussion analyzes the historical financial condition and results of operations of the Partnership and should be read in conjunction with our financial statements and notes thereto, and Management’s Discussion and Analysis of Financial Condition and Results of Operations presented in our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2022 (the “2021 Form 10-K”). 

Forward-Looking Statements

This report contains “forward-looking statements” within the meaning of the federal securities laws. Statements included in this quarterly report that are not historical facts (including any statements regarding plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto), including, without limitation, the information set forth in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, are forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “will,” “should,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. We and our representatives may from time to time make other oral or written statements that are also forward-looking statements.

Such forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of the filing of this report. Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will prove to be correct. Important factors that could cause our actual results to differ materially from the expectations reflected in these forward-looking statements include, among other things, those set forth in “Part I, Item 1A. Risk Factors” in the 2021 Form 10-K.

All forward-looking statements included in this report are based on information available to us on the date of this report. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout this report.

Overview

We are a publicly traded master limited partnership with operations in 26 states. We have the largest independent asphalt facility footprint in the nation, and through that we provide integrated terminalling services for companies engaged in the production, distribution, and marketing of liquid asphalt for infrastructure or other end markets. We manage our operations through a single operating segment, asphalt terminalling services.

We previously provided integrated terminalling, gathering, and transportation services for companies engaged in the production, distribution, and marketing of crude oil in three different operating segments: (i) crude oil terminalling services, (ii) crude oil pipeline services, and (iii) crude oil trucking services. On December 21, 2020, we announced that we had entered into multiple definitive agreements to sell these segments. The transactions closed in February and March of 2021, and these segments are presented as discontinued operations for all periods.

Our 54 asphalt facilities are well-positioned to provide asphalt terminalling services in the market areas they serve throughout the continental United States. With our approximately 9.0 million barrels of total liquid asphalt storage capacity, we provide our customers the ability to effectively manage their liquid asphalt inventories while allowing significant flexibility in their processing and marketing activities. Our asphalt terminalling business delivers a stable cash flow profile through long-term take-or-pay contracts that generally have original terms of 5 to 10 years with options to extend the term. The stability comes from the contract structure that is comprised primarily of fixed fees and cost reimbursements, which make up approximately 95% of our revenues on an annual basis. The remaining revenue is variable, primarily consisting of volume-based throughput fees.

We have contractual agreements in place for all of our asphalt terminalling facilities. We lease certain facilities for operation by our customers and at the remaining facilities we store, process, blend, and manufacture products, among other things, to meet our customers’ specifications. The agreements have, based on a weighted average by remaining fixed revenue, approximately 5.1 years remaining under their terms as of April 29, 2022. Approximately 13% of our tank capacity will expire at the end of 2022 if not renewed with the current customer or a new customer, and the remaining capacity expires at varying times thereafter, through 2035. Our varying contract expiration dates provide for staggered renewals, which provides additional stability to the cash flow. 

15

Merger Agreement

On October 8, 2021, Ergon filed an amendment to its Schedule 13D with the SEC disclosing that Ergon made a non-binding proposal to the Board, pursuant to which Ergon would acquire all the outstanding common units and Preferred Units of the Partnership not already owned by Ergon and its affiliates.

       On April 21, 2022, the Partnership, the General Partner, Ergon Asphalt & Emulsions, Inc., and Merle, LLC, entered into the Merger Agreement, pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as a wholly owned subsidiary of Parent.  See Note 14 to our unaudited condensed consolidated financial statements for additional information.

Potential Impact of Certain Factors on Future Revenues

Due to the high percentage of fixed and reimbursement revenue from our long-term contracts, our focus and our primary risk is renewing contracts at favorable terms. Our ability to renew agreements on favorable terms, or at all, could be impacted if our customers experience negative market conditions. These factors include infrastructure spending, the strength of state and local economies, and the level of allocations of tax funding to transportation spending from state or federal funds. Public transportation infrastructure projects historically have been a relatively stable portion of state and federal budgets and represent a significant share of the United States construction market. Federal funds are allocated on a state-by-state basis, and each state is required to match a portion of the federal funds that it receives. Currently, from a macroeconomic view, there are positive indicators for the infrastructure and construction sector, such as the federal infrastructure spending bill that was passed in November 2021 and a recovering economy. However, due to COVID-19 some uncertainty exists. Despite the uncertainty, our cash flows have remained stable and are expected to remain stable. Further, while we are unaware of any potential negative impact of COVID-19 on our business at this time, we continue to monitor the situation. 

Infrastructure spending is currently a focus at the federal, state, and local levels. The current federal administration infrastructure spending bill (the Infrastructure Investment and Jobs Act) that was passed in November 2021, provides long-term funding and support for road construction and repair. Increased funding potentially impacts us through favorable customer contract renewals, including facility expansion opportunities, as well as increased customer volumes through our terminals. Separate from these funds, COVID-19 relief funds remain available and could have a positive impact on the allocation of state and local spending. Further, there has been an increase in state and local initiatives to support infrastructure funding, and a high percentage of those initiatives have been approved by voters.

Another factor impacting us and our customers, from a short-term perspective, is weather patterns. Our customers’ volumes could be significantly impacted by prolonged rain or snow seasons or any severe weather that occurs. Damage to our terminal facilities from severe weather, such as flooding or hurricanes, could impact our operating results through additional costs and/or loss of revenue.

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Results of Operations

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles, or “GAAP”, management uses additional measures that are known as “non-GAAP financial measures” in its evaluation of past performance and prospects for the future. The primary measure used by management is operating margin, excluding depreciation and amortization.

Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide additional information about our core operating performance and ability to generate and distribute cash flow; (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions and (iii) present measurements that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These additional financial measures are reconciled to the most directly comparable measures as reported in accordance with GAAP, and should be viewed in addition to, and not in lieu of, our unaudited condensed consolidated financial statements and footnotes. 

The table below summarizes our financial results for the three months ended March 31, 2021 and 2022, reconciled to the most directly comparable GAAP measure:

	Three Months Ended						Variance
Operating results	March 31,						Favorable/(Unfavorable)
(dollars in thousands)	2021			2022			$			%
Fixed fee revenue	$	24,371		$	25,157		$	786			3	%
Variable cost recovery revenue		2,584			3,194			610			24	%
Variable throughput and other revenue		120			109			(11	)		(9	)%
Total revenue		27,075			28,460			1,385			5	%
Operating expenses, excluding depreciation and amortization		(12,847	)		(14,179	)		(1,332	)		(10	)%
Total operating margin, excluding depreciation and amortization		14,228			14,281			53			0	%
Depreciation and amortization		3,033			3,397			(364	)		(12	)%
General and administrative expense		3,982			3,371			611			15	%
Loss on disposal of assets		-			24			(24	)		N/A
Operating income		7,213			7,489			276			4	%
Other income (expenses):
Other income		233			127			(106	)		(45	)%
Interest expense		(1,333	)		(964	)		369			28	%
Provision for income taxes		(10	)		(10	)		-			0	%
Income from continuing operations		6,103			6,642			539			9	%
Income from discontinued operations, net		75,550			-			(75,550	)		(100	)%
Net income	$	81,653		$	6,642		$	(75,011	)		(92	)%

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Revenues. Total revenues increased to $28.5 million for the three months ended March 31, 2022, as compared to $27.1 million for the same period in 2021. Revenues consist primarily of fixed fees for items such as storage and minimum throughput requirements, with consideration of annual consumer price index (“CPI”) adjustments built into our agreements. Variable cost recovery revenue is driven by certain reimbursable operating expenses, such as utility costs, and therefore have no net impact on operating margin or net income. Variable throughput revenue is primarily driven by our customers’ excess volumes over annual minimum thresholds and such thresholds are typically reached during the latter part of the year. 

Operating expenses, excluding depreciation and amortization. Operating expense, excluding depreciation and amortization, increased to $14.2 million for the three months ended March 31, 2022, as compared to $12.8 million for the same period in 2021. The increase was primarily due to higher utility costs, which are recoverable costs from our customers, and timing of maintenance and repair projects.

Depreciation and amortization expense. Depreciation and amortization expense increased to $3.4 million for the three months ended March 31, 2022, as compared to $3.0 million for the same period in 2021. This increase is primarily related to the timing of placing maintenance capital projects in-service and the asphalt terminal and industrial park acquisition that closed in January 2022.

General and administrative expense. General and administrative expense decreased to $3.4 million for the three months ended March 31, 2022, as compared to $4.0 million for the same period in 2021. The decrease for the three month period was primarily due to corporate cost synergies realized after the completion of the crude oil business sales, which included lower compensation costs after the first quarter of 2021. 

Interest expense. Interest expense represents interest on borrowings under our credit agreement as well as amortization of debt issuance costs. The following table presents the significant components of interest expense (dollars in thousands):

	Three Months Ended					Variance
	March 31,					Favorable/(Unfavorable)
	2021		2022			$		%
Credit agreement interest	$	942	$	779		$	163		17	%
Amortization of debt issuance costs		244		209			35		14	%
Write-off of debt issuance costs		147		-			147		100	%
Other		-		(24	)		24		N/A
Total interest expense	$	1,333	$	964		$	369		28	%

The decrease in credit agreement interest is due to favorable changes to the applicable margin based on an improved leverage ratio and lower average borrowings outstanding during the period.

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Distributions

The amount of distributions we pay and the decision to make any distribution is determined by the Board of Directors of our General Partner (the “Board”), which has broad discretion to establish cash reserves for the proper conduct of our business and for future distributions to our unitholders. In addition, our cash distribution policy is subject to restrictions on distributions under our credit agreement. 

On April 26, 2022, the Board approved a cash distribution of $0.17875 per outstanding preferred unit for the three months ended March 31, 2022. We will pay this distribution on May 13, 2022, to unitholders of record as of May 6, 2022. The total distribution will be approximately $6.2 million, with approximately $6.2 million and $0.1 million to be paid to our preferred unitholders and general partner, respectively.

In addition, the Board approved a cash distribution of $0.0425 per outstanding common unit for the three months ended March 31, 2022. We will pay this distribution on May 13, 2022, to unitholders of record as of May 6, 2022. The total distribution will be approximately $1.9 million, with approximately $1.8 million to be paid to our common unitholders, less than $0.1 million to be paid to our general partner, and approximately $0.1 million to be paid to holders of phantom and restricted units pursuant to awards granted under our Long-Term Incentive Plan.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements as defined by Item 303 of Regulation S-K.

Liquidity and Capital Resources

Cash Flows

The following table summarizes our sources and uses of cash, inclusive of both continuing and discontinued operations, for the three months ended March 31, 2021 and 2022: 

	Three Months Ended March 31,
	2021			2022
	(in thousands)
Net cash provided by operating activities	$	5,378		$	1,033
Net cash provided by (used in) investing activities	$	153,272		$	(9,624	)
Net cash provided by (used in) financing activities	$	(159,442	)	$	8,471

Operating Activities. Net cash provided by operating activities was $1.0 million for the three months ended March 31, 2022, as compared to $5.4 million for the three months ended March 31, 2021, primarily due to changes in working capital.

Investing Activities. Net cash used in investing activities was $9.6 million for the three months ended March 31, 2022, compared to net cash provided by investing activities of $153.3 million for the three months ended March 31, 2021. Capital expenditures for the three months ended March 31, 2022, included expansion capital expenditures and acquisition costs of $8.0 million related to the growth projects announced in December 2021 and maintenance capital expenditures of $1.6 million. The three months ended March 31, 2021, included net proceeds from the sale of the crude oil businesses of $155.3 million, which excluded $1.5 million of funds held in escrow for right of way renewals. Capital expenditures for the three months ended March 31, 2021, inclusive of both continuing and discontinued operations, included maintenance capital expenditures of $1.5 million and expansion capital expenditures of $0.5 million. 

Financing Activities. Net cash provided by financing activities was $8.5 million for the three months ended March 31, 2022, compared to net cash used in financing activities of $159.4 million for the three months ended March 31, 2021. Cash provided by financing activities for the three months ended March 31, 2022, consisted primarily of net borrowings on long-term debt of $17.0 million, partially offset by $8.1 million in distributions to our unitholders. Net cash used in financing activities for the three months ended March 31, 2021, consisted primarily of $8.1 million in distributions to our unitholder, net payments on long-term debt of $146.0 million, and the repurchase of preferred units for $5.2 million.

Liquidity and Capital Resources

Cash flows from operations and availability under our revolving credit facility are our primary sources of liquidity. At March 31, 2022, we had a working capital deficit of $5.8 million. This is primarily a function of our approach to cash management. At March 31, 2022, we had approximately $115.0 million of revolver borrowings and approximately $0.6 million of letters of credit outstanding under the credit agreement, leaving us with approximately $184.4 million of availability under our revolving credit facility subject to covenant restrictions, which limited our availability to $137.9 million. As of April 29, 2022, we have approximately $110.0 million of revolver borrowings and approximately $0.6 million of letters of credit outstanding under the credit agreement, leaving us with aggregate unused commitments under our revolving credit facility of approximately $189.4 million and cash on hand of approximately $0.4 million. The credit agreement is scheduled to mature on May 26, 2025.

19

Our credit agreement contains certain financial covenants which include a maximum permitted consolidated total leverage ratio, which may limit our availability to borrow funds thereunder. The consolidated total leverage ratio is assessed quarterly based on the trailing twelve months of EBITDA, as defined in the credit agreement. The maximum permitted consolidated total leverage ratio as of March 31, 2022, and for each fiscal quarter thereafter, is 4.75 to 1.00. Our consolidated total leverage ratio was 2.17 to 1.00 as of March 31, 2022. Based on current operating plans and forecasts, we expect to remain in compliance with all covenants of the credit agreement for at least the next year.

Capital Requirements. Our capital requirements consist of the following:

• expansion capital expenditures, which are capital expenditures made to expand the operating capacity or revenue of existing or new assets, whether through construction, acquisition or modification; and

• maintenance capital expenditures, which are capital expenditures made to maintain the existing integrity and operating capacity of our assets and related cash flows, further extending the useful lives of the assets.

The following table breaks out capital expenditures from continuing operations for the three months ended March 31, 2021 and 2022 (in thousands):

	Three Months Ended March 31,
	2021		2022
Net expansion capital expenditures	$	517	$	8,028
Net maintenance capital expenditures	$	1,389	$	1,572

We currently expect our 2022 expansion capital expenditures for organic growth projects to be approximately $15.0 million and our maintenance capital expenditures to be between $5.5 million to $6.5 million, each net of reimbursable expenditures. Our expansion capital expenditures include an asphalt terminal and industrial park acquired in January 2022 and costs related to an expansion project at one of our current terminals. Management is evaluating other expansion opportunities for 2022 and beyond that could increase this range of capital expenditures. These projects will have potential future expansion opportunities that are not currently part of our 2022 expansion capital forecast. Our sources of liquidity for expansion and maintenance capital expenditures will be a combination of cash flows from operations and borrowings under our revolving credit facility.

Our Ability to Grow Depends on Our Ability to Access External Expansion Capital. Our partnership agreement requires that we distribute all of our available cash to our unitholders. Available cash is reduced by cash reserves established by our General Partner to provide for the proper conduct of our business (including for future capital expenditures) and to comply with the provisions of our credit agreement. We may not grow as quickly as businesses that reinvest their available cash to expand ongoing operations because we distribute all of our available cash. 

Recent Accounting Pronouncements

There have been no new accounting pronouncements that have become effective or have been issued during the three months ended March 31, 2022, that are of significance or potential significance to us.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Pursuant to Item 305(e) of Regulation S-K (§ 229.305(e)), the Partnership is not required to provide the information required by this Item as it is a “smaller reporting company,” as defined by Rule 229.10(f)(1).

Item 4. Controls and Procedures.

Evaluation of disclosure controls and procedures. Our General Partner’s management, including the Chief Executive Officer and Chief Financial Officer of our General Partner, evaluated, as of the end of the period covered by this report, the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of our General Partner concluded that our disclosure controls and procedures, as of March 31, 2022, were effective. 

Changes in internal control over financial reporting. There were no changes to our internal control over financial reporting that occurred during the three months ended March 31, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

20

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings.

The information required by this item is included under the caption “Commitments and Contingencies” in Note 12 to our unaudited condensed consolidated financial statements and is incorporated herein by reference thereto.

Item 1A. Risk Factors.

See the risk factors set forth in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities.

None.

21

Item 6. Exhibits.

The information required by this Item 6 is set forth in the Index to Exhibits accompanying this quarterly report and is incorporated herein by reference.

INDEX TO EXHIBITS

Exhibit Number	Description
2.1	Agreement and Plan of Merger, dated April 21, 2022, by and among Ergon Asphalt & Emulsions, Inc., Merle, LLC, Blueknight Energy Partners G.P., L.L.C. and Blueknight Energy Partners, L.P. (filed as Exhibit 2.1 to the Partnership’s Current Report on Form 8-K, filed April 22, 2022, and incorporated herein by reference).
3.1	Amended and Restated Certificate of Limited Partnership of the Partnership, dated November 19, 2009, but effective as of December 1, 2009 (filed as Exhibit 3.1 to the Partnership’s Current Report on Form 8-K, filed November 25, 2009 (Commission File No. 001-33503), and incorporated herein by reference).
3.2	First Amendment to the Amended and Restated Certificate of Limited Partnership of Blueknight Energy Partners L.P., dated July 18, 2019 (filed as Exhibit 3.2 to the Partnership’s Current Report on Form 8-K, filed on July 22, 2019, and incorporated herein by reference).
3.3	Fourth Amended and Restated Agreement of Limited Partnership of the Partnership, dated September 14, 2011 (filed as Exhibit 3.1 to the Partnership’s Current Report on Form 8-K, filed September 14, 2011, and incorporated herein by reference).
3.4	Amended and Restated Certificate of Formation of the General Partner, dated November 20, 2009 but effective as of December 1, 2009 (filed as Exhibit 3.2 to the Partnership’s Current Report on Form 8-K, filed November 25, 2009 (Commission File No. 001-33503), and incorporated herein by reference).
3.5	First Amendment to the Amended and Restated Certificate of Formation of Blueknight Energy Partners G.P., L.L.C., dated July 18, 2019 (filed as Exhibit 3.1 to the Partnership’s Current Report on Form 8-K, filed on July 22, 2019, and incorporated herein by reference).
3.6	Second Amended and Restated Limited Liability Company Agreement of the General Partner, dated December 1, 2009 (filed as Exhibit 3.2 to the Partnership’s Current Report on Form 8-K, filed December 7, 2009 (Commission File No. 001-33503), and incorporated herein by reference).
4.1	Registration Rights Agreement, dated October 5, 2016, by and among the Partnership, Ergon Asphalt & Emulsions, Inc., Ergon Terminaling, Inc. and Ergon Asphalt Holdings, LLC (filed as Exhibit 4.1 to the Partnership’s Current Report on Form 8-K, filed October 5, 2016, and incorporated herein by reference).
10.1	Support Agreement, dated April 21, 2022, by and between Blueknight Energy Partners, L.P. and Ergon Asphalt & Emulsions, Inc. (filed as Exhibit 10.1 to the Partnership’s Current Report on Form 8-K, filed April 22, 2022, and incorporated herein by reference).
31.1*	Certifications of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1#	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be “filed.”
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definitions Document.
101.LAB	Inline XBRL Taxonomy Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Presentation Linkbase Document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).

Attached as Exhibit 101 to this Quarterly Report are the following Inline XBRL-related documents: (i) Document and Entity Information; (ii) Unaudited Condensed Consolidated Balance Sheets as of December 31, 2021 and March 31, 2022; (iii) Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2022; (iv) Unaudited Condensed Consolidated Statement of Changes in Partners’ Capital (Deficit) for the three months ended March 31, 2021 and 2022; (v) Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2022; and (vi) Notes to Unaudited Condensed Consolidated Financial Statements.

____________________

*    Filed herewith.

#     Furnished herewith

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		BLUEKNIGHT ENERGY PARTNERS, L.P.
		By:	Blueknight Energy Partners, G.P., L.L.C.
			its General Partner
Date:	May 5, 2022	By:	/s/ Matthew R. Lewis
			Matthew R. Lewis
			Chief Financial Officer
Date:	May 5, 2022	By:	/s/ Michael G. McLanahan
			Michael G. McLanahan
			Chief Accounting Officer

23

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO AND IN CONNECTION WITH THE REPORTS

TO BE FILED UNDER SECTION 13 AND 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, D. Andrew Woodward, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blueknight Energy Partners, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 5, 2022
/s/ D. Andrew Woodward
D. Andrew Woodward
Chief Executive Officer
Blueknight Energy Partners, G.P., L.L.C.,
general partner of Blueknight Energy Partners, L.P.

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO AND IN CONNECTION WITH THE REPORTS

TO BE FILED UNDER SECTION 13 AND 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Matthew R. Lewis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Blueknight Energy Partners, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 5, 2022
/s/ Matthew R. Lewis
Matthew R. Lewis
Chief Financial Officer
Blueknight Energy Partners, G.P., L.L.C.,
general partner of Blueknight Energy Partners, L.P.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 1350)*

In connection with the Quarterly Report of Blueknight Energy Partners, L.P., a Delaware limited partnership (the “Partnership”), on Form 10-Q for the quarter ended March 31, 2022, as filed with the Securities and Exchange Commission (the “Report”), each of the undersigned, D. Andrew Woodward, Chief Executive Officer of Blueknight Energy Partners G.P., L.L.C., and Matthew R. Lewis, Chief Financial Officer of Blueknight Energy Partners G.P., L.L.C., certifies, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that to his knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Partnership.

/s/ D. Andrew Woodward

D. Andrew Woodward

Chief Executive Officer of

Blueknight Energy Partners G.P., L.L.C.,

general partner of Blueknight Energy Partners, L.P.

May 5, 2022

/s/ Matthew R. Lewis

Matthew R. Lewis

Chief Financial Officer

Blueknight Energy Partners G.P., L.L.C.,

general partner of Blueknight Energy Partners, L.P.

May 5, 2022

* A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished to the Securities and Exchange Commission as an exhibit to the Report.

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Document Information [Line Items]
Entity Central Index Key	0001392091
Entity Registrant Name	Blueknight Energy Partners, L.P.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-33503
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-8536826
Entity Address, Address Line One	6060 American Plaza, Suite 600
Entity Address, City or Town	Tulsa
Entity Address, State or Province	OK
Entity Address, Postal Zip Code	74135
City Area Code	918
Local Phone Number	237-4000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Unit [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Units
Trading Symbol	BKEP
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		41,856,847
Series A Preferred Unit [Member]
Document Information [Line Items]
Title of 12(b) Security	Series A Preferred Units
Trading Symbol	BKEPP
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		34,406,683

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,052	$ 1,172
Accounts receivable, net	4,938	2,989
Receivables from related parties, net	615	369
Other current assets	5,815	3,112
Current assets of discontinued operations	0	2
Total current assets	12,420	7,644
Property, plant and equipment, net of accumulated depreciation of $204,101 and $206,495 at December 31, 2021, and March 31, 2022, respectively	116,028	106,389
Goodwill	6,728	6,728
Debt issuance costs, net	2,652	2,854
Operating lease assets	7,539	7,855
Intangible assets, net	4,088	5,088
Other noncurrent assets	735	340
Total assets	150,190	136,898
Current liabilities:
Accounts payable	2,627	2,105
Accounts payable to related parties	2,023	1,047
Accrued interest payable	293	250
Accrued property taxes payable	1,618	1,660
Accrued payroll	1,789	4,782
Current operating lease liability	1,383	1,418
Other current liabilities	4,074	1,711
Current liabilities of discontinued operations	0	240
Total current liabilities	18,225	20,020
Other long-term liabilities	289	228
Noncurrent operating lease liability	6,394	6,703
Long-term debt	115,000	98,000
Commitments and contingencies (Note 12)
Partners’ capital (deficit):
Common unitholders (41,550,681 and 41,856,847 units issued and outstanding at December 31, 2021, and March 31, 2022, respectively)	388,702	390,310
Preferred unitholders (34,406,683 units issued and outstanding at both dates)	248,729	248,729
General partner interest (1.6% interest with 1,225,409 general partner units outstanding at both dates)	(631,500)	(631,482)
Total partners’ capital	5,931	7,557
Total liabilities and partners’ capital	150,190	136,898
Third Party [Member]
Current liabilities:
Unearned revenue	2,799	1,932
Related Party [Member]
Current liabilities:
Unearned revenue	1,619	4,875
Long-term unearned revenue with related parties	$ 4,351	$ 4,390

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accumulated depreciation (USD)	$ 206,495	$ 204,101
Common units, issued (in shares)	41,856,847	41,550,681
Common units, outstanding (in shares)	41,856,847	41,550,681
Preferred units, issued (in shares)	34,406,683	34,406,683
Preferred units, outstanding (in shares)	34,406,683	34,406,683
General partner Ownership	1.60%	1.60%
General partner units, outstanding (in shares)	1,225,409	1,225,409

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total revenue	$ 28,460	$ 27,075
Costs and expenses:
Operating expense	17,576	15,880
General and administrative expense	3,371	3,982
Loss on disposal of assets	24	0
Total costs and expenses	20,971	19,862
Operating income	7,489	7,213
Other income (expenses):
Other income	127	233
Interest expense	(964)	(1,333)
Income before income taxes	6,652	6,113
Provision for income taxes	10	10
Income from continuing operations	6,642	6,103
Income from discontinued operations, net	0	75,550
Net income	6,642	81,653
Allocation of net income for calculation of earnings per unit:
General partner interest in net income	105	1,292
Preferred interest in net income	6,150	6,341
Net income available to limited partners	$ 387	$ 74,020
Basic and diluted net income from discontinued operations per common unit (in dollars per share)	$ 0	$ 1.75
Basic and diluted net income (loss) from continuing operations per common unit (in dollars per share)	0.01	(0.01)
Basic and diluted net income per common unit (in dollars per share)	$ 0.01	$ 1.74
Weighted average common units outstanding - basic and diluted (in shares)	41,817	41,430
Third Party [Member]
Revenue from contracts	$ 7,606	$ 6,919
Lease revenue	8,487	8,303
Related Party [Member]
Revenue from contracts	5,121	4,849
Lease revenue	7,246	7,004
Service [Member] | Third Party [Member]
Revenue from contracts	7,606	6,919
Service [Member] | Related Party [Member]
Revenue from contracts	$ 5,121	$ 4,849

XML

Condensed Consolidated Statements of Changes in Partners' Capital (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Limited Partner [Member]	Preferred Partner [Member]	General Partner [Member]
Balance at Dec. 31, 2020	$ (66,223)	$ 312,591	$ 253,923	$ (632,737)
Net income (loss)	81,653	73,896	6,465	1,292
Equity-based incentive compensation	(77)	(80)	0	3
Repurchase of preferred units	(5,163)	0	(5,163)	0
Distributions	(8,107)	(1,700)	(6,279)	(128)
Proceeds from sale of common units pursuant to the Employee Unit Purchase Plan	48	48	0	0
Balance at Mar. 31, 2021	2,131	384,755	248,946	(631,570)
Balance at Dec. 31, 2021	7,557	390,310	248,729	(631,482)
Net income (loss)	6,642	386	6,150	106
Equity-based incentive compensation	249	245	0	4
Distributions	(8,105)	(1,827)	(6,150)	(128)
Proceeds from sale of common units pursuant to the Employee Unit Purchase Plan	77	77	0	0
Other	(489)	(489)	0	0
Balance at Mar. 31, 2022	$ 5,931	$ 388,702	$ 248,729	$ (631,500)

XML

Condensed Consolidated Statements of Changes in Partners' Capital (Deficit) (Unaudited) (Parentheticals) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Limited Partner [Member]
Common units issued pursuant to the Employee Unit Purchase Plan (in shares)	25,772	32,696

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 6,642	$ 81,653
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,397	3,065
Amortization and write-off of debt issuance costs	209	391
Tangible asset impairment charge	0	156
(Gain) loss on disposal of assets	24	(75,069)
Equity-based incentive compensation	249	(77)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	(1,948)	10,022
Increase in receivables from related parties	(246)	(157)
Decrease (increase) in other current assets	(1,202)	1,630
Decrease (increase) in other non-current assets	(80)	379
Increase in accounts payable	381	412
Increase (decrease) in payables to related parties	38	(17)
Increase in accrued interest payable	43	5
Decrease in accrued property taxes	(273)	(743)
Increase (decrease) in unearned revenue	918	(373)
Decrease in accrued payroll	(3,002)	(3,822)
Increase (decrease) in other accrued liabilities	(572)	860
Net cash provided by operating activities	1,033	5,378
Cash flows from investing activities:
Capital expenditures	(9,600)	(2,044)
Net proceeds (costs) of asset disposal	(24)	155,316
Net cash provided by (used in) investing activities	(9,624)	153,272
Cash flows from financing activities:
Payments on other financing activities	(501)	(171)
Debt issuance costs	0	(49)
Borrowings under credit agreement	28,000	48,000
Payments under credit agreement	(11,000)	(194,000)
Proceeds from equity issuance	77	48
Repurchase of preferred units	0	(5,163)
Distributions	(8,105)	(8,107)
Net cash provided by (used in) financing activities	8,471	(159,442)
Net decrease in cash and cash equivalents	(120)	(792)
Cash and cash equivalents at beginning of period	1,172	805
Cash and cash equivalents at end of period	1,052	13
Supplemental disclosure of non-cash financing and investing cash flow information:
Non-cash changes in property, plant and equipment	2,434	(74)
Increase in accrued liabilities related to insurance premium financing agreement	0	1,208
Third Party [Member]
Changes in assets and liabilities:
Increase (decrease) in accrued crude oil purchases	0	(3,868)
Related Party [Member]
Changes in assets and liabilities:
Increase (decrease) in accrued crude oil purchases	0	(8,842)
Increase (decrease) in unearned revenue	$ (3,545)	$ (227)

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Note 1 - Organization and Nature of Business	3 Months Ended
	Mar. 31, 2022
Notes to Financial Statements
Business Description and Basis of Presentation [Text Block]	1. ORGANIZATION AND NATURE OF BUSINESS Blueknight Energy Partners, L.P. and subsidiaries (collectively, the “Partnership”) is a publicly traded master limited partnership with operations in 26 states. The Partnership provides integrated terminalling services for companies engaged in the production, distribution, and marketing of liquid asphalt. The Partnership manages its operations through one operating segment, asphalt terminalling services. The Partnership’s common units and preferred units, which represent limited partnership interests in the Partnership, are listed on the Nasdaq Global Market under the symbols “BKEP” and “BKEPP,” respectively. The Partnership was formed in February 2007 as a Delaware master limited partnership. The Partnership previously provided integrated terminalling, gathering, and transportation services for companies engaged in the production, distribution, and marketing of crude oil in three different operating segments: (i) crude oil terminalling services, (ii) crude oil pipeline services, and (iii) crude oil trucking services. On December 21, 2020, the Partnership announced it had entered into multiple definitive agreements to sell these segments. These transactions closed in February and March of 2021. These segments are presented as discontinued operations for all periods presented. Unless otherwise noted, information in these notes to the consolidated financial statements relates to continuing operations. As the Partnership is only operating through one operating segment, a segment footnote is no longer required.

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Note 2 - Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Notes to Financial Statements
Basis of Accounting [Text Block]	2. BASIS OF PRESENTATION The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated balance sheet as of March 31, 2022, the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2022, the condensed consolidated statements of changes in partners’ capital (deficit) for the three months ended March 31, 2021 and 2022, and the condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2022, are unaudited. In the opinion of management, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary to state fairly the financial position and results of operations for the respective interim periods. All adjustments are of a recurring nature unless otherwise disclosed herein. The 2021 year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by GAAP. These unaudited condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”) on March 9, 2022 (the “2021 Form 10-K”). Interim financial results are not necessarily indicative of the results to be expected for an annual period. The Partnership’s significant accounting policies are consistent with those disclosed in Note 3 of the Notes to Consolidated Financial Statements in its 2021 Form 10-K.

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Note 3 - Revenue

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Revenue [Text Block]

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Note 4 - Discontinued Operations

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

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Note 5 - Property, Plant and Equipment

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

5. PROPERTY, PLANT AND EQUIPMENT

	Estimated Useful		December 31,			March 31,
	Lives (Years)		2021			2022
			(dollars in thousands)
Land		N/A	$	21,826		$	23,313
Land improvements		10-20		5,125			5,145
Storage and terminal facilities		10-35		257,433			262,453
Office property and equipment and other		3-30		21,751			22,529
Construction-in-progress		N/A		4,355			9,083
Property, plant and equipment, gross				310,490			322,523
Accumulated depreciation				(204,101	)		(206,495	)
Property, plant and equipment, net			$	106,389		$	116,028

Capital expenditures for the three months ended March 31, 2022, include an asphalt terminal and industrial park acquisition that closed in January 2022 and costs related to an expansion project at an existing terminal.

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Note 6 - Debt

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

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Note 7 - Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Earnings Per Share [Text Block]

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Note 8 - Partners' Capital and Distributions	3 Months Ended
	Mar. 31, 2022
Notes to Financial Statements
Partners' Capital Notes Disclosure [Text Block]	8. PARTNERS’ CAPITAL AND DISTRIBUTIONS During the three months ended March 31, 2021, the Partnership repurchased a total of 688,417 outstanding preferred units at $7.50 per unit or total cash consideration of $5.2 million. The consideration paid was based on the fair market value of the units at the time of purchase. The carrying value of the units was $7.23 per unit. The preferred units were allocated additional net income for the three months ended March 31, 2021, of $0.2 million for the consideration paid in excess of carrying value. All repurchased units were subsequently retired. On April 26, 2022, the Board approved a cash distribution of $0.17875 per outstanding preferred unit for the three months ended March 31, 2022. The Partnership will pay this distribution on May 13, 2022, to unitholders of record as of May 6, 2022. The total distribution will be approximately $6.2 million, with approximately $6.2 million and $0.1 million to be paid to the Partnership’s preferred unitholders and general partner, respectively. In addition, the Board approved a cash distribution of $0.0425 per outstanding common unit for the three months ended March 31, 2022. The Partnership will pay this distribution on May 13, 2022, to unitholders of record on May 6, 2022. The total distribution will be approximately $1.9 million, with approximately $1.8 million to be paid to the Partnership’s common unitholders, less than $0.1 million to be paid to the general partner, and approximately $0.1 million to be paid to holders of phantom and restricted units pursuant to awards granted under the Partnership’s Long-Term Incentive Plan.

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Note 9 - Related-party Transactions	3 Months Ended
	Mar. 31, 2022
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9. RELATED-PARTY TRANSACTIONS The Partnership leases asphalt facilities and provides asphalt terminalling services to Ergon. For the three months ended March 31, 2021 and 2022, the Partnership recognized related-party revenues of $11.9 million and $12.4 million, respectively, for services provided to Ergon. As of December 31, 2021, and March 31, 2022, the Partnership had receivables from Ergon of $0.4 million and $0.6 million, respectively. As of December 31, 2021, and March 31, 2022, the Partnership had unearned revenues from Ergon of $9.3 million and $6.0 million, respectively, which primarily relates to cash received in advance for the following month's lease and storage fees, and capital project reimbursements and deductibles that are being recognized straight-line over the term of the existing revenue contracts.  Ergon also provides certain operations and maintenance services to certain of the Partnership's asphalt facilities that have existing revenue contracts between the parties. For the three months ended March 31, 2021 and 2022, the Partnership recognized operating expense of $4.6 million and $4.8 million, respectively, for these services.

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Note 10 - Long-term Incentive Plan

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

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Note 11 - Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Notes to Financial Statements
Fair Value Disclosures [Text Block]	11. FAIR VALUE MEASUREMENTS The Partnership uses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost) to value assets and liabilities required to be measured at fair value, as appropriate. The Partnership uses an exit price when determining the fair value. The exit price represents amounts that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Partnership utilizes a three-tier fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1 Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 Inputs other than quoted prices that are observable for these assets or liabilities, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs in which there is little market data, which requires the reporting entity to develop its own assumptions. This hierarchy requires the use of observable market data, when available, to minimize the use of unobservable inputs when determining fair value. As of December 31, 2021, and  March 31, 2022, the Partnership had no recurring financial assets or liabilities subject to fair value measurement. Fair Value of Other Financial Instruments The following disclosure of the estimated fair value of financial instruments is made in accordance with accounting guidance for financial instruments. The Partnership has determined the estimated fair values by using available market information and valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. At March 31, 2022, the carrying values on the unaudited condensed consolidated balance sheets for cash and cash equivalents (classified as Level 1), accounts receivable, and accounts payable approximate their fair value because of their short-term nature. Based on the borrowing rates currently available to the Partnership for credit agreement debt with similar terms and maturities and consideration of the Partnership’s non-performance risk, long-term debt associated with the Partnership’s credit agreement at March 31, 2022, approximates its fair value. The fair value of the Partnership’s long-term debt was calculated using observable inputs (eurodollar rate for the risk-free component) and unobservable company-specific credit spread information. As such, the Partnership considers this debt to be Level 3.

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Note 12 - Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

12. COMMITMENTS AND CONTINGENCIES

The Partnership is from time to time subject to various legal actions and claims incidental to its business. Management believes that these legal proceedings will not have a material adverse effect on the financial position, results of operations or cash flows of the Partnership. Once management determines that information pertaining to a legal proceeding indicates that it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated, an accrual is established equal to its estimate of the likely exposure. As part of the consideration for the purchase of the asphalt terminal during the three months ended March 31, 2022, the Partnership assumed environmental liabilities of approximately $2.0 million related to consent orders with a state regulatory agency. The assumption of the environmental liabilities had no impact on the statement of operations, and actual costs are not expected to vary significantly from the current accrual.

The Partnership has contractual obligations to perform dismantlement and removal activities in the event that some of its asphalt product and residual fuel oil terminalling and storage assets are abandoned. These obligations include varying levels of activity including completely removing the assets and returning the land to its original state. The Partnership has determined that the settlement dates related to the retirement obligations are indeterminate. The assets with indeterminate settlement dates have been in existence for many years and with regular maintenance will continue to be in service for many years to come. Also, it is not possible to predict when demands for the Partnership’s terminalling and storage services will cease, and the Partnership does not believe that such demand will cease for the foreseeable future. Accordingly, the Partnership believes the date when these assets will be abandoned is indeterminate. With no reasonably determinable abandonment date, the Partnership cannot reasonably estimate the fair value of the associated asset retirement obligations. Management believes that if the Partnership’s asset retirement obligations were settled in the foreseeable future the present value of potential cash flows that would be required to settle the obligations based on current costs are not material. The Partnership will record asset retirement obligations for these assets in the period in which sufficient information becomes available for it to reasonably determine the settlement dates.

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Note 13 - Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Accounting Standards Update and Change in Accounting Principle [Text Block]

13. RECENTLY ISSUED ACCOUNTING STANDARDS

There have been no new accounting pronouncements that have become effective or have been issued during the three months ended March 31, 2022, that are of significance or potential significance to the Partnership.

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Note 14 - Subsequent Events

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Subsequent Events [Text Block]

14. SUBSEQUENT EVENTS

Merger Agreement

On October 8, 2021, Ergon filed an amendment to its Schedule 13D with the SEC disclosing that Ergon made a non-binding proposal to the Board, pursuant to which Ergon would acquire all the outstanding common units and Preferred Units of the Partnership not already owned by Ergon and its affiliates.

       On April 21, 2022, the Partnership, the General Partner, Ergon Asphalt & Emulsions, Inc. (“Parent”) and Merle, LLC (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as a wholly owned subsidiary of Parent (the “Merger”).

       Under the terms of the Merger Agreement, at the effective time of the Merger, (i) each issued and outstanding common unit representing a limited partner interest in the Partnership (each, a “Common Unit”) other than Common Units owned by Parent, the Partnership and their subsidiaries will be converted into the right to receive $4.65 in cash without any interest thereon (the “Common Unit Merger Consideration”), and (ii) each issued and outstanding Series A Preferred Unit of the Partnership (each, a “Preferred Unit”), other than Preferred Units owned by Parent, the Partnership and their subsidiaries will be converted into the right to receive $8.75 in cash without any interest thereon (the “Preferred Unit Merger Consideration” and, together with the Common Unit Merger Consideration, the “Merger Consideration”). In connection with the Merger, (i) the General Partner’s non-economic general partner interest in the Partnership, (ii) the incentive distribution rights held by the General Partner and (iii) the Common Units and the Preferred Units owned by Parent and its subsidiaries, in each case, will not be cancelled, will not be converted into the right to receive the Merger Consideration and will remain outstanding following the Merger.

       Immediately prior to the effective time of the Merger, all restricted units and phantom units outstanding immediately prior to the effective time will fully vest, and each holder of such units will receive an amount equal to the Merger Consideration with respect to each such unit that becomes vested pursuant to the terms of the Merger Agreement.

       The Partnership has entered into a Support Agreement, dated as of April 21, 2022 (the “Support Agreement”), with Parent, pursuant to which Parent has agreed to vote the Covered Units (as defined in the Support Agreement) it beneficially owns in favor of the Merger Agreement and the transactions contemplated thereby, including the Merger.

       The Merger is subject to customary closing conditions, including approval of the unitholders. 

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Note 3 - Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Notes Tables

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

	Revenue from Contracts with Customers(1)		Revenue from Leases		Total
Remainder of 2022	$	30,529	$	45,549	$	76,078
2023		36,739		53,125		89,864
2024		36,009		52,337		88,346
2025		33,801		46,268		80,069
2026		24,753		30,670		55,423
Thereafter		23,639		33,902		57,541
Total revenue related to future performance obligations	$	185,470	$	261,851	$	447,321

Disaggregation of Revenue [Table Text Block]

	Three Months Ended March 31, 2021
	Revenue from contracts with customers				Lease revenue
	Third-party revenue		Related-party revenue		Third-party revenue		Related-party revenue		Total
Fixed storage and throughput revenue	$	5,064	$	4,721	$	-	$	-	$	9,785
Fixed lease revenue		-		-		7,801		6,785		14,586
Variable cost recovery revenue		1,735		128		502		219		2,584
Variable throughput and other revenue		120		-		-		-		120
Total	$	6,919	$	4,849	$	8,303	$	7,004	$	27,075

	Three Months Ended March 31, 2022
	Revenue from contracts with customers				Lease revenue
	Third-party revenue		Related-party revenue		Third-party revenue		Related-party revenue		Total
Fixed storage and throughput revenue	$	5,186	$	4,861	$	-	$	-	$	10,047
Fixed lease revenue		-		-		8,122		6,988		15,110
Variable cost recovery revenue		2,313		260		363		258		3,194
Variable throughput and other revenue		107		-		2		-		109
Total	$	7,606	$	5,121	$	8,487	$	7,246	$	28,460

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Note 4 - Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2022

Notes Tables

Disposal Groups, Including Discontinued Operations [Table Text Block]

Assets and Liabilities of Discontinued Operations (in thousands)	As of December 31, 2021
	Crude Oil Trucking Services		Crude Oil Pipeline Services		Crude Oil Terminalling Services		Total
ASSETS
Other assets		-		1		1		2
Total assets of discontinued operations	$	-	$	1	$	1	$	2
LIABILITIES
Current liabilities	$	12	$	218	$	10	$	240
Total liabilities of discontinued operations	$	12	$	218	$	10	$	240

Statement of Operations for Discontinued Operations (in thousands)		Three Months Ended March 31, 2021
	Crude Oil Trucking Services			Crude Oil Pipeline Services			Crude Oil Terminalling Services			Total
Revenue:
Third-party service revenue	$	9		$	413		$	3,643		$	4,065
Intercompany service revenue		409			-			-			409
Third-party product sales revenue		-			15,591			-			15,591
Costs and expenses:
Operating expense		1,333			1,438			910			3,681
Intercompany operating expense		-			409			-			409
Cost of product sales		-			4,994			-			4,994
Cost of product sales from related party		-			9,461			-			9,461
General and administrative expense		59			118			-			177
Tangible asset impairment expense		92			41			23			156
Gain on disposal of assets		(3	)		(1,694	)		(73,372	)		(75,069	)
Interest expense		-			72			634			706
Income (loss) before income taxes		(1,063	)		1,165			75,448			75,550
Provision for income taxes		-			-			-			-
Net income (loss) from discontinued operations	$	(1,063	)	$	1,165		$	75,448		$	75,550

Select cash flow information (in thousands)
	Crude Oil Trucking Services		Crude Oil Pipeline Services		Crude Oil Terminalling Services		Total
	Three Months Ended March 31, 2021
Amortization	$	3	$	14	$	15	$	32
Capital expenditures	$	-	$	10	$	109	$	119

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Note 5 - Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2022

Notes Tables

Property, Plant and Equipment [Table Text Block]

	Estimated Useful		December 31,			March 31,
	Lives (Years)		2021			2022
			(dollars in thousands)
Land		N/A	$	21,826		$	23,313
Land improvements		10-20		5,125			5,145
Storage and terminal facilities		10-35		257,433			262,453
Office property and equipment and other		3-30		21,751			22,529
Construction-in-progress		N/A		4,355			9,083
Property, plant and equipment, gross				310,490			322,523
Accumulated depreciation				(204,101	)		(206,495	)
Property, plant and equipment, net			$	106,389		$	116,028

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Note 6 - Debt (Tables)

3 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Debt [Table Text Block]

	Three Months Ended March 31,
	2021			2022
Debt issuance costs capitalized	$	49		$	8
Write off of debt issuance costs due to amendments(1)		147			-
Interest expense related to amortization of debt issuance costs		244			209
Credit facility interest expense(2)		942			779
Weighted average interest rate under credit facility(2)		3.83	%		3.69	%

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Note 7 - Net Income Per Limited Partner Unit (Tables)

3 Months Ended

Mar. 31, 2022

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended March 31,
	2021			2022
Net income	$	81,653		$	6,642
General partner interest in net income		1,292			105
Preferred interest in net income		6,341			6,150
Net income available to limited partners	$	74,020		$	387
Basic weighted average number of units:
Common units		41,430			41,817
Restricted and phantom units		1,166			1,279
Total units		42,596			43,096
Basic and diluted net income from discontinued operations per common unit	$	1.75		$	-
Basic and diluted net income (loss) from continuing operations per common unit	$	(0.01	)	$	0.01
Basic and diluted net income per common unit	$	1.74		$	0.01

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Note 10 - Long-term Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2022

Notes Tables

Share-Based Compensation Arrangements by Share-Based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block]

Grant Date	Number of Units		Weighted Average Grant Date Fair Value(1)		Grant Date Total Fair Value (in thousands)
December 2019		7,500	$	1.07	$	8
December 2020		7,500	$	2.06	$	15
December 2021		22,743	$	3.26	$	74

Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block]

Grant Date	Number of Units		Weighted Average Grant Date Fair Value(1)		Grant Date Total Fair Value (in thousands)
June 2019		46,168	$	1.08	$	50
March 2020		600,396	$	0.90	$	540
October 2020		16,339	$	1.53	$	25
March 2021		530,435	$	2.71	$	1,437
March 2022		558,411	$	3.25	$	1,815

Share-Based Payment Arrangement, Activity [Table Text Block]

	Number of Units		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2021		1,555,290	$	1.66
Granted		558,411	$	3.25
Vested		426,297	$	1.14
Nonvested at March 31, 2022		1,687,404	$	2.30

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Note 1 - Organization and Nature of Business (Details Textual)	3 Months Ended
	Mar. 31, 2022
Number of States in which Entity Operates	26
Number of Operating Segments	1

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Note 3 - Revenue (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Billed Contracts Receivable	$ 2.1	$ 2.2
Contract with Customer, Asset, after Allowance for Credit Loss, Total	2.0
Contract with Customer, Liability, Total	2.5	$ 3.4
Contract with Customer, Liability, Revenue Recognized	$ 1.6

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Note 3 - Revenue - Future Performance Obligations (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Remainder of 2022, Revenue from Leases	$ 45,549
Total, Remainder of 2022	76,078
2023, Revenue from Leases	53,125
Total, 2023	89,864
2024, Revenue from Leases	52,337
Total, 2024	88,346
2025, Revenue from Leases	46,268
Total, 2025	80,069
2026, Revenue from Leases	30,670
Total, 2026	55,423
Thereafter, Revenue from Leases	33,902
Total, Thereafter	57,541
Revenue related to future performance obligation	185,470	[1]
Revenue from Leases, Revenue from Leases	261,851
Total revenue related to future performance obligations	$ 447,321

[1] Excluded from the table is revenue that is either constrained or related to performance obligations that are wholly unsatisfied as of March 31, 2022.

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Note 3 - Revenue - Future Performance Obligations 2 (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Revenue related to future performance obligation	$ 185,470	[1]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue related to future performance obligation	$ 30,529	[1]
Expected Timing of Satisfaction, Period (Year)	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue related to future performance obligation	$ 36,739	[1]
Expected Timing of Satisfaction, Period (Year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue related to future performance obligation	$ 36,009	[1]
Expected Timing of Satisfaction, Period (Year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue related to future performance obligation	$ 33,801	[1]
Expected Timing of Satisfaction, Period (Year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue related to future performance obligation	$ 24,753	[1]
Expected Timing of Satisfaction, Period (Year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue related to future performance obligation	$ 23,639	[1]
Expected Timing of Satisfaction, Period (Year)	1 year

[1] Excluded from the table is revenue that is either constrained or related to performance obligations that are wholly unsatisfied as of March 31, 2022.

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Note 3 - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total revenue	$ 28,460	$ 27,075
Fixed Storageand Throughput Revenue [Member]
Total revenue	10,047	9,785
Fixed Lease Revenue [Member]
Total revenue	15,110	14,586
Variable Cost Recovery Revenue [Member]
Total revenue	3,194	2,584
Variable Throughput Revenue [Member]
Total revenue	109	120
Third Party [Member]
Revenue from contracts	7,606	6,919
Lease revenue	8,487	8,303
Third Party [Member] | Fixed Storageand Throughput Revenue [Member]
Revenue from contracts	5,186	5,064
Lease revenue	0	0
Third Party [Member] | Fixed Lease Revenue [Member]
Revenue from contracts	0	0
Lease revenue	8,122	7,801
Third Party [Member] | Variable Cost Recovery Revenue [Member]
Revenue from contracts	2,313	1,735
Lease revenue	363	502
Third Party [Member] | Variable Throughput Revenue [Member]
Revenue from contracts	107	120
Lease revenue	2	0
Related Party [Member]
Revenue from contracts	5,121	4,849
Lease revenue	7,246	7,004
Related Party [Member] | Fixed Storageand Throughput Revenue [Member]
Revenue from contracts	4,861	4,721
Lease revenue	0	0
Related Party [Member] | Fixed Lease Revenue [Member]
Revenue from contracts	0	0
Lease revenue	6,988	6,785
Related Party [Member] | Variable Cost Recovery Revenue [Member]
Revenue from contracts	260	128
Lease revenue	258	219
Related Party [Member] | Variable Throughput Revenue [Member]
Revenue from contracts	0	0
Lease revenue	$ 0	$ 0

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Note 4 - Discontinued Operations (Details Textual) - Crude Oil Pipeline Services [Member] - Discontinued Operations, Held-for-sale [Member] $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Proceeds from Divestiture of Businesses, Held in Escrow	$ 1.2
Exit and Disposal Costs	$ 1.9

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Note 4 - Discontinued Operations - Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Total liabilities of discontinued operations			$ 240
Net income (loss) from discontinued operations	$ 0	$ 75,550
Discontinued Operations, Disposed of by Sale [Member]
Other assets			2
Total assets of discontinued operations			2
Current liabilities			240
Operating expense		3,681
General and administrative expense		177
Income (loss) before income taxes		75,550
Provision for income taxes		0
Net income (loss) from discontinued operations		75,550
Amortization		32
Capital expenditures		119
Discontinued Operations, Disposed of by Sale [Member] | Intersegment Eliminations [Member]
Operating expense		409
Discontinued Operations, Disposed of by Sale [Member] | Third Party [Member]
Cost of product sales		4,994
Discontinued Operations, Disposed of by Sale [Member] | Related Party [Member]
Cost of product sales		9,461
Discontinued Operations, Disposed of by Sale [Member] | Service [Member] | Intersegment Eliminations [Member]
Revenue		409
Discontinued Operations, Disposed of by Sale [Member] | Service [Member] | Third Party [Member]
Revenue		4,065
Discontinued Operations, Disposed of by Sale [Member] | Product [Member] | Third Party [Member]
Revenue		15,591
Discontinued Operations, Held-for-sale [Member]
Tangible asset impairment expense		156
Gain on disposal of assets		(75,069)
Interest expense		706
Crude Oil Trucking Services [Member] | Discontinued Operations, Disposed of by Sale [Member]
Other assets			0
Total assets of discontinued operations			0
Current liabilities			12
Total liabilities of discontinued operations			12
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member]
Operating expense		1,333
General and administrative expense		59
Tangible asset impairment expense		92
Gain on disposal of assets		(3)
Interest expense		0
Income (loss) before income taxes		(1,063)
Provision for income taxes		0
Net income (loss) from discontinued operations		(1,063)
Amortization		3
Capital expenditures		0
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member] | Intersegment Eliminations [Member]
Operating expense		0
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member] | Third Party [Member]
Cost of product sales		0
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member] | Related Party [Member]
Cost of product sales		0
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member] | Service [Member] | Intersegment Eliminations [Member]
Revenue		409
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member] | Service [Member] | Third Party [Member]
Revenue		9
Crude Oil Trucking Services [Member] | Discontinued Operations, Held-for-sale [Member] | Product [Member] | Third Party [Member]
Revenue		0
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member]
Other assets			1
Total assets of discontinued operations			1
Current liabilities			218
Total liabilities of discontinued operations			218
Amortization		14
Capital expenditures		10
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member] | Intersegment Eliminations [Member]
Operating expense		409
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member] | Third Party [Member]
Cost of product sales		4,994
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member] | Related Party [Member]
Cost of product sales		9,461
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member] | Service [Member] | Intersegment Eliminations [Member]
Revenue		0
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member] | Service [Member] | Third Party [Member]
Revenue		413
Crude Oil Pipeline Services [Member] | Discontinued Operations, Disposed of by Sale [Member] | Product [Member] | Third Party [Member]
Revenue		15,591
Crude Oil Pipeline Services [Member] | Discontinued Operations, Held-for-sale [Member]
Operating expense		1,438
General and administrative expense		118
Tangible asset impairment expense		41
Gain on disposal of assets		(1,694)
Interest expense		72
Income (loss) before income taxes		1,165
Provision for income taxes		0
Net income (loss) from discontinued operations		1,165
Crude Oil Terminalling Services [Member] | Discontinued Operations, Disposed of by Sale [Member]
Other assets			1
Total assets of discontinued operations			1
Current liabilities			10
Total liabilities of discontinued operations			$ 10
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member]
Operating expense		910
General and administrative expense		0
Tangible asset impairment expense		23
Gain on disposal of assets		(73,372)
Interest expense		634
Income (loss) before income taxes		75,448
Provision for income taxes		0
Net income (loss) from discontinued operations		75,448
Amortization		15
Capital expenditures		109
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member] | Intersegment Eliminations [Member]
Operating expense		0
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member] | Third Party [Member]
Cost of product sales		0
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member] | Related Party [Member]
Cost of product sales		0
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member] | Service [Member] | Intersegment Eliminations [Member]
Revenue		0
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member] | Service [Member] | Third Party [Member]
Revenue		3,643
Crude Oil Terminalling Services [Member] | Discontinued Operations, Held-for-sale [Member] | Product [Member] | Third Party [Member]
Revenue		$ 0

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Note 5 - Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Property, plant and equipment, gross	$ 322,523	$ 310,490
Accumulated depreciation	(206,495)	(204,101)
Property, plant and equipment, net	116,028	106,389
Land [Member]
Property, plant and equipment, gross	23,313	21,826
Land Improvements [Member]
Property, plant and equipment, gross	$ 5,145	5,125
Land Improvements [Member] | Minimum [Member]
Estimated Useful Lives (Year)	10 years
Land Improvements [Member] | Maximum [Member]
Estimated Useful Lives (Year)	20 years
Storage and Terminal Facilities [Member]
Property, plant and equipment, gross	$ 262,453	257,433
Storage and Terminal Facilities [Member] | Minimum [Member]
Estimated Useful Lives (Year)	10 years
Storage and Terminal Facilities [Member] | Maximum [Member]
Estimated Useful Lives (Year)	35 years
Office Equipment [Member]
Property, plant and equipment, gross	$ 22,529	21,751
Office Equipment [Member] | Minimum [Member]
Estimated Useful Lives (Year)	3 years
Office Equipment [Member] | Maximum [Member]
Estimated Useful Lives (Year)	30 years
Construction in Progress [Member]
Property, plant and equipment, gross	$ 9,083	$ 4,355

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Note 6 - Debt (Details Textual) - Credit Agreement [Member] $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)	Apr. 29, 2022 USD ($)	May 26, 2021 USD ($)	Jan. 08, 2021 USD ($)	Jan. 07, 2021 USD ($)
Line of Credit Facility, Maximum Borrowing Capacity Including Additional Lenders	$ 450.0
Debt Instrument Covenant, Issued Qualified Senior Notes	$ 200.0
Debt Instrument Covenant, Prior to Issuance of Qualified Senior Notes, Maximum Permitted Consolidated Total Leverage Ratio	4.75
Debt Instrument Covenant, Prior to Issuance of Qualified Senior Notes, Based on Occurence of Acquisition, Maximum Permitted Consolidated Total Leverage Ratio	5.25
Debt Instrument Covenant, Specified Acquisition, Aggregate Consideration	$ 15.0
Debt Instrument Covenant, Prior to Issuance of Qualified Senior Notes, Maximum Permitted Consolidated Total Leverage Ratio	5.00
Debt Instrument Covenant, After Issuance of Qualified Senior Notes, Based on Occurence of Acquisition, Maximum Permitted Consolidated Total Leverage Ratio	5.50
Debt Instrument Covenant, Maximum Permitted Consolidated Senior Secured Leverage Ratio	3.50
Debt Instrument Covenant, Minimum Permitted Consolidated Interest Coverage Ratio	2.50
Consolidated Total Leverage Ratio	2.17
Consolidated Interest Coverage Ratio	16.66
Debt Instrument, Covenant, Maximum Aggregate Unit Repurchases	$ 40.0
Debt Instrument, Covenant, Maximum Yearly Unit Repurchases	$ 10.0
Debt Instrument, Covenant, Unit Repurchases, Maximum Total Leverage Ratio	4.00
Debt Instrument, Covenant, Unit Repurchases, Minimum Percentage of Revolving Credit Facility to Total Commitments	20.00%
Debt Instrument Covenant, Default, Percentage of General Partner Interest Cease	100.00%
Ergon [Member]
Debt Instrument Covenant, Default, Percentage of Membership Interest Cease	50.00%
Federal Funds Effective Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Eurodollar Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Minimum [Member]
Line of Credit Facility, Commitment Fee Percentage	0.375%
Minimum [Member] | Applicable Margin Based on Eurodollar Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Minimum [Member] | Applicable Margin on Based on Alternate Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Maximum [Member]
Line of Credit Facility, Commitment Fee Percentage	0.50%
Maximum [Member] | Applicable Margin Based on Eurodollar Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Maximum [Member] | Applicable Margin on Based on Alternate Base Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 300.0	$ 350.0	$ 400.0
Revolving Credit Facility [Member] | Subsequent Event [Member]
Long-term Line of Credit, Total		$ 110.0
Letters of Credit Outstanding, Amount		0.6
Line of Credit Facility, Remaining Borrowing Capacity		$ 189.4

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Note 6 - Debt - Credit Agreement (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Interest expense related to amortization of debt issuance costs		$ 209	$ 391
Credit Agreement [Member]
Debt issuance costs capitalized		8	49
Interest expense related to amortization of debt issuance costs		209	244
Credit facility interest expense(2)	[1]	$ 779	$ 942
Weighted average interest rate under credit facility(2)	[1]	3.69%	3.83%
Credit Agreement [Member] | Debt Issuance Costs Due to Amendments [Member]
Write off of debt issuance costs due to amendments(1)	[2]	$ 0	$ 147

[1] Excludes interest expense related to amortization and write off of debt issuance costs for the three months ending March 31, 2021.

[2] On January 8, 2021, the previous credit facility was amended to, among other things, reduce the revolving loan facility from $400.0 million to $350.0 million upon the sale of the crude oil terminalling segment.

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Note 7 - Net Income Per Limited Partner Unit - Earning Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net income	$ 6,642	$ 81,653
General partner interest in net income	105	1,292
Preferred interest in net income	6,150	6,341
Net income available to limited partners	$ 387	$ 74,020
Common units (in shares)	41,817	41,430
Restricted and phantom units (in shares)	1,279	1,166
Total units (in shares)	43,096	42,596
Basic and diluted net income from discontinued operations per common unit (in dollars per share)	$ 0	$ 1.75
Basic and diluted net income (loss) from continuing operations per common unit (in dollars per share)	0.01	(0.01)
Basic and diluted net income per common unit (in dollars per share)	$ 0.01	$ 1.74

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Note 8 - Partners' Capital and Distributions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Partners' Capital Account, Treasury Units, Purchased		$ 5,163
Preferred Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 6,200
Common Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Distributions Declared, Per Unit (in dollars per share)	$ 0.0425
Distribution Made to Limited Partner, Cash Distributions Declared	$ 1,900
Distribution Made to Limited Partner, Distribution Date	May 13, 2022
Distribution Made to Limited Partner, Date of Record	May 06, 2022
Holders of Phantom and Restricted Units [Member] | Common Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 100
Preferred Partner [Member]
Partners' Capital Account, Units, Treasury Units Purchased (in shares)		688,417
Partners' Capital Account, Treasury Units, Purchased, Per Unit (in dollars per share)		$ 7.50
Partners' Capital Account, Treasury Units, Purchased		$ 5,163
Preferred Units, Per Unit (in dollars per share)		$ 7.23
Partners Capital Account, Treasury Units, Purchases, Additional Value		$ 200
Preferred Partner [Member] | Preferred Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Distributions Declared, Per Unit (in dollars per share)	$ 0.17875
Distribution Made to Limited Partner, Cash Distributions Declared	$ 6,200
Distribution Made to Limited Partner, Declaration Date	Apr. 26, 2022
Distribution Made to Limited Partner, Distribution Date	May 13, 2022
Distribution Made to Limited Partner, Date of Record	May 06, 2022
General Partner [Member]
Partners' Capital Account, Treasury Units, Purchased		(0)
General Partner [Member] | Preferred Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 100
General Partner [Member] | Common Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Cash Distributions Declared	100
Limited Partner [Member]
Partners' Capital Account, Treasury Units, Purchased		$ (0)
Limited Partner [Member] | Common Unit, Cash Distribution [Member]
Distribution Made to Limited Partner, Cash Distributions Declared	$ 1,800

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Note 9 - Related-party Transactions (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Due from Related Parties, Current, Total	$ 615		$ 369
Ergon [Member]
Revenue from Related Parties	12,400	$ 11,900
Due from Related Parties, Current, Total	600		400
Deferred Revenue, Total	6,000		$ 9,300
Ergon [Member] | Ergon Operating and Maintenance Agreement [Member]
Related Party Transaction, Expenses from Transactions with Related Party	$ 4,800	$ 4,600

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Note 10 - Long-term Incentive Plan (Details Textual) - Long-Term Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Millions		1 Months Ended			3 Months Ended		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)					8,100,000
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount					$ 3.0
Share-based Payment Arrangement, Expense					$ 0.2	$ 0.1
Restricted Stock [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)		3 years
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.33%
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche One [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.33%
Restricted Stock [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.33%
Phantom Share Units (PSUs) [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage					33.33%
Phantom Share Units (PSUs) [Member] | Share-Based Payment Arrangement, Tranche One [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage					33.33%
Phantom Share Units (PSUs) [Member] | Share-Based Payment Arrangement, Tranche Three [Member] | The 2022 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage					33.33%
Phantom Share Units (PSUs) [Member] | Vesting 100% After Three Years [Member] | The 2020 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)					3 years
Phantom Share Units (PSUs) [Member] | Vesting 100% After Three Years [Member] | The 2021 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)					3 years
Phantom Share Units (PSUs) [Member] | Vesting 100% After Three Years [Member] | The 2019 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)					3 years
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted (in shares)		21,228
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)		$ 3.26
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value, Without Vesting Requirement		$ 0.1					$ 0.1
Director [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	[1]		$ 2.06	$ 1.07			$ 3.26

[1] Fair value is the closing market price on the grant date of the awards.

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Note 10 - Long-term Incentive Plan - Information on Outstanding Grants Made to Directors Under the LTIP (Details) - Long-Term Incentive Plan [Member] - Director [Member] - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended			12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2021
Weighted Average Grant Date Fair Value (in dollars per share)		$ 3.26
Restricted Stock [Member]
Granted, number of units (in shares)			7,500	7,500	22,743
Weighted Average Grant Date Fair Value (in dollars per share)	[1]		$ 2.06	$ 1.07	$ 3.26
Grant Date Total Fair Value		$ 74	$ 15	$ 8	$ 74

[1] Fair value is the closing market price on the grant date of the awards.

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Note 10 - Long-term Incentive Plan - Information on Outstanding Grants Made to Employees Under the LTIP (Details) - Long-Term Incentive Plan [Member] - Phantom Share Units (PSUs) [Member] - Employees [Member] - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended
		Mar. 31, 2022	Mar. 31, 2021	Oct. 31, 2020	Mar. 31, 2020	Jun. 30, 2019
Granted, number of units (in shares)		558,411	530,435	16,339	600,396	46,168
Weighted Average Grant Date Fair Value (in dollars per share)	[1]	$ 3.25	$ 2.71	$ 1.53	$ 0.90	$ 1.08
Grant Date Total Fair Value		$ 1,815	$ 1,437	$ 25	$ 540	$ 50

[1] Fair value is the closing market price on the grant date of the awards.

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Note 10 - Long-term Incentive Plan - Activity Pertaining to Phantom and Restricted Common Stock Unit Awards (Details) - Long-Term Incentive Plan [Member] - Phantom and Restricted Units Holders [Member]	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Nonvested, number of units, beginning balance (in shares) | shares	1,555,290
Nonvested, weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares	$ 1.66
Granted, number of units (in shares) | shares	558,411
Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares	$ 3.25
Vested, number of units (in shares) | shares	426,297
Vested, weighted average grant date fair value (in dollars per share) | $ / shares	$ 1.14
Nonvested, number of units, ending balance (in shares) | shares	1,687,404
Nonvested, weighted average grant date fair value, ending balance (in dollars per share) | $ / shares	$ 2.30

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Note 11 - Fair Value Measurements (Details Textual) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets, Fair Value Disclosure	$ 0
Financial Liabilities Fair Value Disclosure, Total		$ 0

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Note 12 - Commitments and Contingencies (Details Textual) $ in Millions	Mar. 31, 2022 USD ($)
Accrual for Environmental Loss Contingencies, Ending Balance	$ 2

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Note 14 - Subsequent Events (Details Textual) - Merger Agreement [Member] - Subsequent Event [Member]	Apr. 21, 2022 $ / shares
Business Acquisition, Common Unit Price (in dollars per share)	$ 4.65
Business Acquisition, Series A Preferred Unit of the Partnership (in dollars per share)	$ 8.75