Kinder Morgan Partners to buy two tanker companies for $962M


Kinder Morgan Partners (KMP. KMI) agrees to buy two oil tanker companies from affiliates of Blackstone Group and Cerberus Capital Management for $962M.

American Petroleum Tankers has a fleet of five medium range Jones Act qualified product tankers, each with 330K barrels of cargo capacity.

State Class Tankers has ordered four medium range Jones Act qualified product tankers, each with 330K barrels of cargo capacity, scheduled to be delivered in 2015 and 2016; KMP plans to invest ~$214M to complete construction of the vessels.

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Comments (5)
  • gawilley
    , contributor
    Comments (1555) | Send Message
     
    cheaper and faster to float it down the Mississippi as opposed to pushing it thru a pipeline???
    23 Dec 2013, 09:00 AM Reply Like
  • Qniform
    , contributor
    Comments (4403) | Send Message
     
    Jones Act tankers (US flag vessels) are required to ship between US ports. Think GOM to East coast...
    24 Dec 2013, 02:57 AM Reply Like
  • Richardb55
    , contributor
    Comments (2) | Send Message
     
    I wish they would stay away from the shipping business. We don't need more volatility.
    23 Dec 2013, 10:11 AM Reply Like
  • cyrano13
    , contributor
    Comments (184) | Send Message
     
    Many think Rich Kinder is king Midas,
    Risk is increasing,
    23 Dec 2013, 11:28 AM Reply Like
  • Sumflow
    , contributor
    Comments (3597) | Send Message
     
    American Petroleum Tankers has been involved in a legal tussle with the U.S. Department of Transportation, which rejected the company's request last year for $340 million in loan guarantees, which is why Kinder got it so cheap.

     

    IPO: http://reut.rs/1kBIGeX
    24 Dec 2013, 01:30 AM Reply Like
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