On Tuesday, Shares of Kinder Morgan, Inc. (NYSE:KMI), lost -1.22% to $33.94.
Kinder Morgan declared it is expanding its growing fleet of Jones Act product tankers and has signed a definitive agreement valued at an all-in price of $568 million with Philly Tankers LLC to take assignment of contracts for the construction of four, new 50,000-deadweight-ton, Tier II tankers to be constructed at the Aker Philadelphia Shipyard in Philadelphia, Pennsylvania. The transaction requires approval of shareholders holding 80 percent of the shares of Philly Tankers AS. Philly Tankers AS is the parent of Philly Tankers LLC. Shareholders accounting for over 85 percent of Philly Tankers AS’ outstanding shares have already entered into irrevocable voting undertakings approving the transaction. An extraordinary general meeting of the shareholders of Philly Tankers AS will be planned in August 2015 for formal shareholder approval of the transaction.
Each LNG-conversion-ready tanker will have a capacity of 337,000 barrels. The vessels will be delivered to Kinder Morgan between November 2016 and November 2017 and placed in United States domestic service, commonly referred to as the Jones Act trade. The first two that are planned for delivery, in late 2016 and early 2017, are under long-term contract to a creditworthy oil company. Contract discussions for the two tankers to be delivered by late 2017 are ongoing with other creditworthy counterparties, and executed contracts are predictable to be accomplished by early 2016. About 10 percent of each vessel’s all-in price will be paid upon construction start, with the pro-rata balance due upon each ship’s delivery.
These four new vessels will enhance Kinder Morgan’s Jones Act tanker fleet to 16 ships by late 2017, of which 14 are under long-term contracts with strong, creditworthy counterparties.
Kinder Morgan, Inc. operates as an energy infrastructure and energy company in North America. The company operates through Natural Gas Pipelines, CO2, Terminals, Products Pipelines, Kinder Morgan Canada, and Other segments.
Shares of Hecla Mining Co. (NYSE:HL), declined -5.36% to $2.12, during its last trading session, after silver and gold prices slipped in anticipation of higher U.S. interest rates.
The U.S. interest rate is likely to enhance this fall as strong U.S. data continues to be released, which will strengthen the dollar giving precious metals a disadvantage, Reuters reports.
“The Fed will look past international macro developments, focusing instead on positive trends in U.S. labor data, and therefore continue to see September Fed lift-off as the most likely scenario,” Citi said in an analyst note.
Hecla Mining Company, together with its auxiliaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The company offers unrefined gold and silver bullion bars to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters and brokers.
Finally, Devon Energy Corporation (NYSE:DVN), ended its last trade with -0.41% loss, and closed at $46.22, after price target for the stock was lowered to $67 from $69 at Jefferies, which reiterated its “buy” rating.
Devon Energy slowed activity in the Eagle Ford during the second quarter, as its partner (BHP) reduced activity, the firm noted.
Devon Energy Corporation, an independent energy company, primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the United States and Canada.
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