Kinder Morgan Energy Partners, L.P. (NYSE: KMP) today announced the closing of an agreement with Crowley Maritime Corporation to purchase two Jones Act tankers for approximately $270 million. The MT Pennsylvania and the MT Florida engage in the marine transportation of crude oil, condensate and refined products in the United States, commonly referred to as the Jones Act trade, and are currently operating pursuant to multi-year charters with a major integrated oil company. The vessels each have approximately 330,000 barrels of cargo capacity and will join Kinder Morgan's existing fleet of five operating tankers. The company previously commissioned the construction of an additional five tankers, which are expected to be delivered between 2015 and 2017. Crowley, a leading operator and technical manager in the U.S. product tanker industry, will continue to operate the vessels. The transaction is expected to be immediately accretive to cash available to KMP unitholders upon closing, which is expected to be effective Nov. 1. "Kinder Morgan's continued expansion into the Jones Act tanker market demonstrates our commitment to provide customers with a variety of safe and efficient means to store and transport crude, petroleum products and chemicals," said John Schlosser, president of KMP's Terminals segment. "We are delighted to expand our relationship with Crowley, a premier provider of marine transportation services." Kinder Morgan Energy Partners, L.P. (NYSE: KMP) is a leading pipeline transportation and energy storage company and one of the largest publicly traded pipeline limited partnerships in America. It owns an interest in or operates approximately 52,000 miles of pipelines and 180 terminals. The general partner of KMP is owned by Kinder Morgan, Inc. (NYSE: KMI). Kinder Morgan is the largest midstream and the third largest energy company in North America with a combined enterprise value of approximately $120 billion. It owns an interest in or operates approximately 80,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, gasoline, crude oil, CO 2 and other products, and its terminals store petroleum products and chemicals and handle such products as ethanol, coal, petroleum coke and steel. KMI owns the general partner interests of KMP and El Paso Pipeline Partners, L.P. (NYSE: EPB), along with limited partner interests in KMP, Kinder Morgan Management, LLC (NYSE: KMR) and EPB. For more information please visit www.kindermorgan.com. This news release includes forward-looking statements. These forward-looking statements are subject to risks and uncertainties and are based on the beliefs and assumptions of management, based on information currently available to them. Although Kinder Morgan believes that these forward-looking statements are based on reasonable assumptions, it can give no assurance that such assumptions will materialize. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include those enumerated in Kinder Morgan's reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they were made, and except to the extent required by law, Kinder Morgan undertakes no obligation to update or review any forward-looking statement because of new information, future events or other factors. Because of these uncertainties, readers should not place undue reliance on these forward-looking statements.
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