First Class

Summer 2013

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BLUEKNIGHT ENERGY PARTNERS Building a Brand Peterbilt fleet helps Blueknight forge strong identity T he end of the last decade was a tumultuous time at the company that has since become Blueknight Energy Partners GP, LLC, a rapidly growing "mid-stream" energy services provider with even greater near-term growth expectations. There have been a couple recent changes in ownership and management of the Oklahoma City-based partnership that provides services such as crude oil storage, processing and transportation. The current form of the company began taking shape in 2009 when The Vitol Group, a Netherlands-based energy firm, acquired the company and gave it its new name. Currently, Blueknight is jointly owned by affiliates of Vitol Holdings, B.V., and Charlesbank Capital Partners, a leading private equity firm. The new partnership has provided Blueknight with a team of industry veterans and the financial resources to carve a niche in the dynamic energy services industry. What remained from the previous iteration of the company, however, was Mark Nieto, Blueknight's manager of transportation maintenance, spec'ed his first Peterbilt (a Model 359) for oilfield service in 1980. Blueknight's manager of transportation maintenance. Nieto has worked in oilfield vehicle maintenance since 1977, spec'ed his first Peterbilt (a Model 359) for oilfield service in 1980 and has been watching Peterbilt equipment validate itself ever since. So when Hatley shared management's directive with him, Nieto immediately began ordering Peterbilts, and has since taken delivery of the 143 Model 388 day cabs that now comprise more than half the Blueknight fleet. "I've usually been fortunate enough to work for people who have high standards, who understand that the Peterbilt tractor is the top-of-the-line crude oil vessel," says Nieto. "Peterbilt makes a safe, durable truck that will stay on the road. And these day cabs, when we re-sell them, they're like gold." Staying on the road — in a figurative sense — is key to Blueknight's success, even though Blueknight's duty can take their trucks off road on as much as half their mileage. Peterbilt air-leaf sus- "These Peterbilt day cabs, when we sell them, they're like gold." less-than-premium equipment, and an associated reputation for performance. "I remember the first directive I had here from our new upper level management," says Larry Hatley, Vice President of Transportation, Marketing and Operations. "They looked at the fleet and said, 'We're changing the culture here. Let's upgrade this junk.' " Step one Among Hatley's early orders of business was hiring Mark Nieto as 12 l FIRST CLASS pension and Dana DSP41 tandem axles are spec'ed to handle the rugged offroad duty while still delivering premium, fuel-efficient on-highway performance. The spec also includes driver comfort features, since Hatley and Nieto need to recruit the best, highly qualified drivers with HazMat credentials and the ability to operate high-tech filling equipment. Quality equipment matters to quality drivers, according to Nieto. As a result, keeping them comfortable throughout the work day takes on heightened importance. "Our drivers get a lot of exercise," Nieto says. "They're in and out of the truck, climbing tank steps, working oil. So it's important that they have a safe, comfortable work-

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