Kinder Morgan Market Opportunity and Financial Overview
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 today(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
28View entire presentation