|
DELAWARE
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001-33503
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20-8536826
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(State of incorporation
or organization)
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(Commission file number)
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(I.R.S. employer identification number)
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201 NW 10th, Suite 200
Oklahoma City, Oklahoma
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73103
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(Address of principal executive offices)
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(Zip code)
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Item 1.01.
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Entry into a Material Definitive Agreement.
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Item 2.01.
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Completion of Acquisition or Disposition of Assets.
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EXHIBIT NUMBER
|
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DESCRIPTION
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2.1
|
—
|
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10.1*
|
—
|
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10.2
|
—
|
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99.1
|
—
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BLUEKNIGHT ENERGY PARTNERS, L.P.
|
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By:
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Blueknight Energy Partners G.P., L.L.C
|
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|
|
its General Partner
|
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Date:
|
July 12, 2018
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By:
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/s/ Alex G. Stallings
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|
|
Alex G. Stallings
|
|
|
|
Chief Financial Officer and Secretary
|
1.
|
Section 11.2 of the Agreement is deleted in its entirety and replaced with the following:
|
2.
|
Section 3(a) of Attachment A shall be amended to remove the column titled “Memphis, TN Terminal” and to revise the Total column as follows:
|
|
Nashville, TN
|
Birmingport, AL
|
Yellow Creek, MS
|
Pleasanton, TX
|
Mount Pleasant, TX
|
Ennis, TX
|
Chandler, AZ
|
Wolcott, KS
|
Total
|
Storage Fee
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
Minimum Capacity Commitment
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Per Barrel Storage Fee
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
$***
|
3.
|
Section 7 of Attachment A shall be amended to remove any reference to Memphis, TN from the definition of “Facilities.”
|
4.
|
Attachment B shall be amended to remove the Memphis, TN facility and all products listed thereunder.
|
5.
|
Attachment D shall be amended to remove the Memphis, TN facility and all tanks listed thereunder.
|
6.
|
All other terms and conditions of the Agreement not modified, changed, or amended by this Amendment are hereby ratified and shall remain in full force and effect as set forth in the Agreement.
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BKEP TERMINALLING, L.L.C.
|
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BKEP TERMINALLING, L.L.C.
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||||||
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|
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By:
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/s/ Alex G. Stallings
|
|
By:
|
/s/ Alex G. Stallings
|
||||
Name:
|
Alex G. Stallings
|
|
Name:
|
Alex G. Stallings
|
||||
Title:
|
Chief Financial Officer and Secretary
|
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Title:
|
Chief Financial Officer and Secretary
|
||||
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BKEP ASPHALT, L.L.C.
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|
ERGON ASPHALT & EMULSIONS,
|
||||||
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|
INC.
|
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By:
|
/s/ Alex G. Stallings
|
|
By:
|
/s/ J. Baxter Burns
|
||||
Name:
|
Alex G. Stallings
|
Alex G. Stallings
|
Name:
|
J. Baxter Burns
|
||||
Title:
|
Chief Financial Officer and Secretary
|
|
Title:
|
President
|
3.1
|
Choice of Law; Venue
.
|
ERGON ASPHALT & EMULSIONS, INC.
|
|
||
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|
|
|
By:
|
/s/ J. Baxter Burns
|
|
|
|
|
J. Baxter Burns
|
|
|
|
President
|
|
BLUEKNIGHT ENERGY PARTNERS G.P., L.L.C.
|
|
||
|
|
|
|
By:
|
/s/ Alex G. Stallings
|
|
|
|
|
Name: Alex G. Stallings
|
|
|
|
Title: Chief Financial Officer and Secretary
|
|
|
|
|
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BLUEKNIGHT ENERGY PARTNERS, L.P.
|
|
||
|
|
|
|
By:
|
/s/ Alex G. Stallings
|
|
|
|
|
Name: Alex G. Stallings
|
|
|
|
Title: Chief Financial Officer and Secretary
|
|
|
|
|
|
BKEP TERMINALLING, L.L.C.
|
|
||
|
|
|
|
By:
|
/s/ Alex G. Stallings
|
|
|
|
|
Name: Alex G. Stallings
|
|
|
|
Title: Chief Financial Officer and Secretary
|
|
|
|
|
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BKEP ASPHALT, L.L.C.
|
|
||
|
|
|
|
By:
|
/s/ Alex G. Stallings
|
|
|
|
|
Name: Alex G. Stallings
|
|
|
|
Title: Chief Financial Officer and Secretary
|
|
|
|
|
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BKEP MATERIALS, L.L.C.
|
|
||
|
|
|
|
By:
|
/s/ Alex G. Stallings
|
|
|
|
|
Name: Alex G. Stallings
|
|
|
|
Title: Chief Financial Officer and Secretary
|
|
ROFR Asset
|
ROFR Asset Owner
|
Wolcott, KS Asphalt Terminal
|
BKEP Terminalling, L.L.C.
|
Ennis, TX Asphalt Terminal
|
BKEP Terminalling, L.L.C.
|
Chandler, AZ Asphalt/Emulsion Terminal
|
BKEP Terminalling, L.L.C.
|
Mt. Pleasant, TX Emulsion Terminal
|
BKEP Terminalling, L.L.C.
|
Pleasanton, TX Emulsion Terminal
|
BKEP Terminalling, L.L.C.
|
Birmingport, AL Asphalt/Polymer/Emulsion Terminal
|
BKEP Terminalling, L.L.C.
|
Memphis, TN Asphalt/Polymer/Emulsion Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Nashville, TN Asphalt/Polymer Terminal
|
BKEP Terminalling, L.L.C.
|
Yellow Creek, MS Asphalt Terminal
|
BKEP Terminalling, L.L.C.
|
Fontana, CA Asphalt/Emulsion Terminal
|
BKEP Materials, L.L.C.
|
Las Vegas, NV Asphalt/Emulsion/Polymer Terminal
|
BKEP Materials, L.L.C. and BKEP Asphalt, L.L.C.
|
Saginaw, TX Asphalt Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Lubbock, TX Asphalt Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
ROFR Asset
|
ROFR Right Owner
|
Fontana, CA Asphalt/Emulsion Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Ennis, TX Asphalt Terminal
|
BKEP Terminalling, L.L.C.
|
Las Vegas, NV Asphalt/Emulsion/Polymer Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Mt. Pleasant, TX Emulsion Terminal
|
BKEP Terminalling, L.L.C.
|
Wolcott, KS Asphalt Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Birmingport, AL Asphalt/Polymer/Emulsion Terminal
|
BKEP Terminalling, L.L.C.
|
Ennis, TX Asphalt Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Nashville, TN Asphalt/Polymer Terminal
|
BKEP Terminalling, L.L.C.
|
Chandler, AZ Asphalt/Emulsion Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Fontana, CA Asphalt/Emulsion Terminal
|
BKEP Materials, L.L.C.
|
Mt. Pleasant, TX Emulsion Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Saginaw, TX Asphalt Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Pleasanton, TX Emulsion Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Birmingport, AL Asphalt/Polymer/Emulsion Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Nashville, TN Asphalt/Polymer Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Yellow Creek, MS Asphalt Terminal
|
Ergon Asphalt & Emulsions, Inc.
|
Memphis, TN Asphalt/Polymer/Emulsion Terminal
|
BKEP Materials, L.L.C. & BKEP Asphalt, L.L.C.
|
Saginaw, TX Asphalt Terminal
|
BKEP Materials, L.L.C. & BKEP Asphalt, L.L.C.
|
Lubbock, TX Asphalt Terminal
|
BKEP Materials, L.L.C. & BKEP Asphalt, L.L.C.
|
BLUEKNIGHT ENERGY PARTNERS, L.P.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2018
(in thousands, except unit data)
|
|||||||||||||||||||
|
Historical
|
|
Pro Forma Adjustments for Activity of Disposed Assets
|
|
Pro Forma Adjusted for Activity of Disposed Assets
|
|
Pro Forma Adjustments for Proceeds used toward Debt Repayment
|
|
Unaudited Pro Forma Balance Sheet
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
2,081
|
|
|
$
|
88,538
|
|
(a)
|
$
|
90,619
|
|
|
$
|
(88,538
|
)
|
(d)
|
$
|
2,081
|
|
Other current assets
|
22,990
|
|
|
(53
|
)
|
(c)
|
22,937
|
|
|
(4
|
)
|
(e)
|
22,933
|
|
|||||
Total current assets
|
25,071
|
|
|
88,485
|
|
|
113,556
|
|
|
(88,542
|
)
|
|
25,014
|
|
|||||
Property, plant and equipment, net
|
304,416
|
|
|
(16,972
|
)
|
(a)
|
287,444
|
|
|
—
|
|
|
287,444
|
|
|||||
Other long-term assets
|
32,104
|
|
|
(5
|
)
|
(c)
|
32,099
|
|
|
—
|
|
|
32,099
|
|
|||||
Total assets
|
$
|
361,591
|
|
|
$
|
71,508
|
|
|
$
|
433,099
|
|
|
$
|
(88,542
|
)
|
|
$
|
344,557
|
|
LIABILITIES AND PARTNERS’ CAPITAL
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
$
|
25,506
|
|
|
$
|
124
|
|
(c)
|
$
|
25,630
|
|
|
$
|
—
|
|
|
$
|
25,630
|
|
Long-term liabilities
|
4,638
|
|
|
—
|
|
|
4,638
|
|
|
—
|
|
|
4,638
|
|
|||||
Long-term debt
|
334,592
|
|
|
—
|
|
|
334,592
|
|
|
(88,538
|
)
|
(d)
|
246,054
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
Partners’ capital:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common unitholders (40,158,342 and 40,321,442 units issued and outstanding)
|
446,471
|
|
|
(179
|
)
|
(b), (c)
|
446,292
|
|
|
(4
|
)
|
(e)
|
446,288
|
|
|||||
Preferred Units (35,125,202 units issued and outstanding)
|
253,923
|
|
|
—
|
|
|
253,923
|
|
|
—
|
|
|
253,923
|
|
|||||
General partner interest (1.6% interest with 1,225,409 general partner units outstanding)
|
(703,539
|
)
|
|
71,563
|
|
(a), (b), (c)
|
(631,976
|
)
|
|
—
|
|
|
(631,976
|
)
|
|||||
Total partners’ capital
|
(3,145
|
)
|
|
71,384
|
|
|
68,239
|
|
|
(4
|
)
|
|
68,235
|
|
|||||
Total liabilities and partners’ capital
|
$
|
361,591
|
|
|
$
|
71,508
|
|
|
$
|
433,099
|
|
|
$
|
(88,542
|
)
|
|
$
|
344,557
|
|
BLUEKNIGHT ENERGY PARTNERS, L.P.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2018
(in thousands, except unit data)
|
|||||||||||||||||||
|
Historical
|
|
Pro Forma Adjustments for Activity of Disposed Assets
|
|
Pro Forma Adjusted for Activity of Disposed Assets
|
|
Pro Forma Adjustments for Proceeds used toward Debt Repayment
|
|
Unaudited Pro Forma Statement of Operations
|
||||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party revenue
|
$
|
17,318
|
|
|
$
|
—
|
|
(f)
|
$
|
17,318
|
|
|
$
|
—
|
|
|
$
|
17,318
|
|
Related-party revenue
|
6,321
|
|
|
(2,508
|
)
|
(f)
|
3,813
|
|
|
—
|
|
|
3,813
|
|
|||||
Lease revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party revenue
|
9,804
|
|
|
—
|
|
|
9,804
|
|
|
—
|
|
|
9,804
|
|
|||||
Related-party revenue
|
7,703
|
|
|
(2,499
|
)
|
(f)
|
5,204
|
|
|
—
|
|
|
5,204
|
|
|||||
Product sales revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party revenue
|
3,514
|
|
|
—
|
|
|
3,514
|
|
|
—
|
|
|
3,514
|
|
|||||
Total revenue
|
44,660
|
|
|
(5,007
|
)
|
|
39,653
|
|
|
—
|
|
|
39,653
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expense
|
31,135
|
|
|
(3,163
|
)
|
(f)
|
27,972
|
|
|
—
|
|
|
27,972
|
|
|||||
Cost of product sales
|
2,637
|
|
|
—
|
|
|
2,637
|
|
|
—
|
|
|
2,637
|
|
|||||
General and administrative expense
|
4,221
|
|
|
(3
|
)
|
(f)
|
4,218
|
|
|
—
|
|
|
4,218
|
|
|||||
Asset impairment expense
|
616
|
|
|
—
|
|
|
616
|
|
|
—
|
|
|
616
|
|
|||||
Total costs and expenses
|
38,609
|
|
|
(3,166
|
)
|
|
35,443
|
|
|
—
|
|
|
35,443
|
|
|||||
Loss on sale of assets
|
(236
|
)
|
|
—
|
|
|
(236
|
)
|
|
—
|
|
|
(236
|
)
|
|||||
Operating income(loss)
|
5,815
|
|
|
(1,841
|
)
|
|
3,974
|
|
|
—
|
|
|
3,974
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Gain on sale of unconsolidated affiliate
|
2,225
|
|
|
—
|
|
|
2,225
|
|
|
—
|
|
|
2,225
|
|
|||||
Interest expense, net
|
(3,569
|
)
|
|
—
|
|
|
(3,569
|
)
|
|
1,140
|
|
(h)
|
(2,429
|
)
|
|||||
Income(loss) before income taxes
|
4,471
|
|
|
(1,841
|
)
|
|
2,630
|
|
|
1,140
|
|
|
3,770
|
|
|||||
Provision for income taxes
|
29
|
|
|
(13
|
)
|
(g)
|
16
|
|
|
4
|
|
(i)
|
20
|
|
|||||
Net income(loss)
|
$
|
4,442
|
|
|
$
|
(1,828
|
)
|
|
$
|
2,614
|
|
|
$
|
1,136
|
|
|
$
|
3,750
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allocation of net income(loss) for calculation of earnings per unit:
|
|
|
|
|
|
|
|
|
|
||||||||||
General partner interest in net income(loss)
|
$
|
231
|
|
|
$
|
(30
|
)
|
|
$
|
201
|
|
|
$
|
19
|
|
|
$
|
220
|
|
Preferred interest in net income
|
$
|
6,278
|
|
|
$
|
—
|
|
|
$
|
6,278
|
|
|
$
|
—
|
|
|
$
|
6,278
|
|
Net income (loss) available to limited partners
|
$
|
(2,067
|
)
|
|
$
|
(1,798
|
)
|
|
$
|
(3,865
|
)
|
|
$
|
1,117
|
|
|
$
|
(2,748
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted net income(loss) per common unit
|
$
|
(0.05
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
0.02
|
|
|
$
|
(0.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average common units outstanding - basic and diluted
|
40,289
|
|
|
—
|
|
|
40,289
|
|
|
—
|
|
|
40,289
|
|
BLUEKNIGHT ENERGY PARTNERS, L.P.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2017
(in thousands, except unit data)
|
|||||||||||||||||||
|
Historical
|
|
Pro Forma Adjustments for Activity of Disposed Assets
|
|
Pro Forma Adjusted for Activity of Disposed Assets
|
|
Pro Forma Adjustments for Proceeds used toward Debt Repayment
|
|
Unaudited Pro Forma Statement of Operations
|
||||||||||
Service revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party revenue
|
$
|
113,772
|
|
|
$
|
(148
|
)
|
(f)
|
$
|
113,624
|
|
|
$
|
—
|
|
|
$
|
113,624
|
|
Related-party revenue
|
56,688
|
|
|
(20,263
|
)
|
(f)
|
36,425
|
|
|
—
|
|
|
36,425
|
|
|||||
Product sales revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third-party revenue
|
11,479
|
|
|
—
|
|
|
11,479
|
|
|
—
|
|
|
11,479
|
|
|||||
Total revenue
|
181,939
|
|
|
(20,411
|
)
|
|
161,528
|
|
|
—
|
|
|
161,528
|
|
|||||
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expense
|
123,805
|
|
|
(13,943
|
)
|
(f)
|
109,862
|
|
|
—
|
|
|
109,862
|
|
|||||
Cost of product sales
|
8,807
|
|
|
—
|
|
|
8,807
|
|
|
—
|
|
|
8,807
|
|
|||||
General and administrative expense
|
17,112
|
|
|
(16
|
)
|
(f)
|
17,096
|
|
|
—
|
|
|
17,096
|
|
|||||
Asset impairment expense
|
2,400
|
|
|
—
|
|
|
2,400
|
|
|
—
|
|
|
2,400
|
|
|||||
Total costs and expenses
|
152,124
|
|
|
(13,959
|
)
|
|
138,165
|
|
|
—
|
|
|
138,165
|
|
|||||
Loss on sale of assets
|
(975
|
)
|
|
27
|
|
(f)
|
(948
|
)
|
|
—
|
|
|
(948
|
)
|
|||||
Operating income
|
28,840
|
|
|
(6,425
|
)
|
|
22,415
|
|
|
—
|
|
|
22,415
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity earnings in unconsolidated affiliate
|
61
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
|||||
Gain on sale of unconsolidated affiliate
|
5,337
|
|
|
—
|
|
|
5,337
|
|
|
—
|
|
|
5,337
|
|
|||||
Interest expense, net
|
(14,027
|
)
|
|
—
|
|
|
(14,027
|
)
|
|
4,560
|
|
(h)
|
(9,467
|
)
|
|||||
Income(loss) before income taxes
|
20,211
|
|
|
(6,425
|
)
|
|
13,786
|
|
|
4,560
|
|
|
18,346
|
|
|||||
Provision for income taxes
|
166
|
|
|
84
|
|
(g)
|
250
|
|
|
13
|
|
(i)
|
263
|
|
|||||
Net income(loss)
|
$
|
20,045
|
|
|
$
|
(6,509
|
)
|
|
$
|
13,536
|
|
|
$
|
4,547
|
|
|
$
|
18,083
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Allocation of net income(loss) for calculation of earnings per unit:
|
|
|
|
|
|
|
|
|
|
||||||||||
General partner interest in net income(loss)
|
$
|
944
|
|
|
$
|
(112
|
)
|
|
$
|
832
|
|
|
$
|
75
|
|
|
$
|
907
|
|
Preferred interest in net income
|
$
|
25,115
|
|
|
$
|
—
|
|
|
$
|
25,115
|
|
|
$
|
—
|
|
|
$
|
25,115
|
|
Net income(loss) available to limited partners
|
$
|
(6,014
|
)
|
|
$
|
(6,397
|
)
|
|
$
|
(12,411
|
)
|
|
$
|
4,472
|
|
|
$
|
(7,939
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted net income(loss) per common unit
|
$
|
(0.15
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
0.12
|
|
|
$
|
(0.20
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common units outstanding - basic and diluted
|
38,342
|
|
|
—
|
|
|
38,342
|
|
|
—
|
|
|
38,342
|
|
(a)
|
Pro forma adjustment to remove the assets and liabilities sold in the Divestiture. The purchase price of $90.0 million was reduced by closing adjustments of $1.5 million through the balance sheet date.
|
(b)
|
Pro forma adjustment to reflect the impact of the change in valuation allowance recorded against the Partnership’s deferred tax assets due to the removal of the assets and liabilities sold in the Divestiture.
|
(c)
|
Pro forma adjustment to reflect the change in the tax provision associated with the assets and liabilities sold in the Divestiture.
|
(d)
|
Pro forma adjustment to reflect the cash proceeds from the Divestiture, which are assumed to be used toward the repayment of long-term debt.
|
(e)
|
Pro forma adjustment to reflect the impact of the change in the tax provision due to the repayment of long-term debt using the proceeds received from the assets and liabilities sold in the Divestiture.
|
(f)
|
Pro forma adjustment to eliminate revenues and expenses of the assets sold in the Divestiture from the Partnership’s consolidated statements of operations.
|
(h)
|
Pro forma adjustment to reflect the reduction in interest expense as a result of the repayment of long-term debt with the proceeds from the Divestiture.
|
(i)
|
Pro forma adjustment to reflect the change in the tax provision associated with the repayment of long-term debt with the proceeds from the Divestiture.
|