Kinder Morgan announced today it has agreed to purchase American Petroleum Tankers (APT) and State Class Tankers (SCT) from affiliates of The Blackstone Group and Cerberus Capital Management for approximately $962 million. The two companies’ fleets transport crude oil, condensate and refined products throughout the domestic market.
“This is a strategic and complementary extension of our existing crude oil and refined products transportation business,” John Schlosser, president of Kinder Morgan’s Terminals segment, said in a statement. “We are purchasing tankers that provide stable fee-based cash flow through multi-year contracts with major credit worthy oil producers.”
APT’s five tankers are currently operating under contracts with oil companies, refiners and the Navy, with an average remaining term of four years. Kinder Morgan will spend approximately $214 million to complete construction of SCT’s four commissioned tankers, which will have long-term charters with a major oil company.
The transaction is expected to close in the first quarter of 2014.
Photo: Herve Cozanet