Blueknight Energy Partners, L.P. (BKEP)

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Nine Month Results

The Partnership’s service revenues were $113.5 million for the nine months ended September 30, 2010, representing a decrease of 5% from $119.7 million for the nine months ended September 30, 2009. The Partnership’s crude oil gathering and transportation revenue and crude oil terminalling and storage revenue decreased by approximately $2.3 million and $3.7 million, respectively, for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009 primarily due to decreased utilization of the Partnership’s crude oil assets as a result of the bankruptcy filings of the Partnership’s former parent. The Partnership’s asphalt services revenue, excluding reimbursement revenues for fuel and power, property tax, and insurance expenses related to the operations of our liquid asphalt facilities, decreased by $1.1 million for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009 primarily due to changes in contract terms.

Total interest expense increased by $0.9 million to $39.5 million for the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009. General and administrative expenses decreased by $11.9 million, or 52%, to $11.0 million for the nine months ended September 30, 2010 compared to $22.9 million for the nine months ended September 30, 2009. This decrease is primarily attributable to a decrease in legal, financial advisory and other professional expenses during the nine months ended September 30, 2010 compared to the nine months ended September 30, 2009.

Net loss for the nine months ended September 30, 2010 was $10.6 million, or $0.30 per basic and diluted common unit, which is consistent with a net loss of $10.9 million, or $0.30 per basic and diluted common unit, for the nine months ended September 30, 2009. EBITDA for the nine months ended September 30, 2010 was $45.3 million, as compared to $45.0 million in the nine months ended September 30, 2009 (see the section of this release entitled “Non-GAAP Financial Measures” for a discussion of EBITDA and a reconciliation of such measure to its comparable GAAP measures). Net loss and EBITDA for the nine months ended September 30, 2010, also include a $0.8 million non-cash impairment charge related to the asphalt services operating segment.

Liquidity

In October of 2010, the Partnership refinanced its outstanding debt and concurrently raised additional capital through the issuance of additional partnership units. The refinancing will result in decreased leverage, reduced interest rates on outstanding borrowings and increased liquidity. For further information please refer to the Partnership’s current report on Form 8-K filed with the Securities and Exchange Commission on October 25, 2010.