Seeking Alpha

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.
Comments (5)
  • gawilley
    , contributor
    Comments (466) | 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 (2458) | 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
    Comment (1) | 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 (106) | Send Message
     
    Many think Rich Kinder is king Midas,
    Risk is increasing,
    23 Dec 2013, 11:28 AM Reply Like
  • Sumflow
    , contributor
    Comments (3641) | 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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