Energy Transitions and Financial Measures slide image

Energy Transitions and Financial Measures

Tankers Meeting Domestic Maritime Demand Most modern & efficient Jones Act tanker fleet American Petroleum Tankers 16 fuel-efficient Jones Act tankers Largest, most modern fleet with an average age of 8.8 years Dramatically improved Jones Act fundamentals Industry supply & demand dynamics have tightened considerably with 100% of the fleet presently utilized Trade flow disruptions for both crude and products associated with Russia/Ukraine crisis Nascent trans-Panama Canal trade for RD from USGC to USWC New statutory limitations on issuing waivers Strengthening charter rates further supported by new-build economics Spot time charter rates for Medium Range (MR) Jones Act tankers have improved from $58K/day at the end of 2021 to $75K/day(a) New-build MR capital cost estimated $200MM/vessel with earliest potential deliveries in 2027(a) Term charter rate required to underwrite such investment estimated at ~$100K/day(a) Significantly de-risked APT charter profile Percent of revenue days under firm charter: Bay State Garden State Palmetto State Magnolia State Lone Star State Golden State American Pride American Liberty American Endurance Pelican State American Freedom Pennsylvania Florida Evergreen State Empire State Sunshine State 2022 2023 2024 2025 As of Jan 2022 72% 19% 25% 25% As of Jan 2023 100% 93% 79% 65% a) Source: Wilson Gillette Report, December 2022 by Navigistics Consulting. b) Revenue Days calculated as 16 vessels x 365 days, adjusted for scheduled dry docks. KINDER MORGAN ■firm charter renewal option 2023 2024 2025 Average firm charter term remaining has improved from 1.3 years at the beginning of 2022 to 3.3 years today 29
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