Blueknight Declares Quarterly Distributions

Blueknight Energy Partners, L.P. (NASDAQ: BKEP - Common Units) (NASDAQ:
BKEPP - Preferred Units) (“BKEP” or the “Partnership”), announced today
that the board of directors of its general partner has declared a
quarterly cash distribution on the Partnership’s common units of $0.04
per common unit, as well as a cash distribution of $0.17875 per unit on
the Partnership’s preferred units. “The reduction of the common unit
distribution to $0.04 per common unit is a key step in our efforts to
strengthen our balance sheet,” stated Mark Hurley, CEO of the
Partnership. “Our previous earnings guidance, as well as our year-end
targets of distribution coverage greater than 1.0x and a leverage ratio
between 4.0x and 4.5x, remain unchanged.” The distributions are payable
on May 14, 2019, on all outstanding common and preferred units to
unitholders of record as of the close of business on May 3, 2019.

Forward-Looking Statements and Treasury Regulation Notice

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

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

About Blueknight Energy Partners, L.P.

BKEP owns and operates a diversified portfolio of complementary
midstream energy assets consisting of:

• 8.8 million barrels of liquid asphalt storage located at 53 terminals
  in 26 states;
• 6.9 million barrels of above-ground crude oil storage capacity located
  primarily in Oklahoma, approximately 6.6 million barrels of which are
  located at the Cushing Interchange terminalling facility in Cushing,
  Oklahoma;
• 646 miles of crude oil pipeline located primarily in Oklahoma and
  Texas; and
• 60 crude oil transportation vehicles deployed primarily in Kansas,
  Oklahoma and Texas.

BKEP provides integrated terminalling, gathering and transportation
services for companies engaged in the production, distribution and
marketing of liquid asphalt and crude oil. BKEP is headquartered in
Oklahoma City, Oklahoma. For more information, visit the Partnership’s
web site at www.bkep.com.

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