Energy infrastructure giant Kinder Morgan Inc. (NYSE: KMI) announced Wednesday morning that it had signed a 10-year agreement with steelmaker Nucor Corp. (NYSE: NUE) to provide services for five Nucor facilities. The agreement is valued at about $900 million for the contract period.
The five Nucor plans produce approximately 13.4 million tons of steel products annually, and Kinder Morgan’s terminals division plans to handle about 14.8 million tons a year of scrap steel, direct-reduced iron, pig iron and other feedstocks. The terminals division also will provide other ancillary services, according to the announcement.
Kinder Morgan already operates a terminal in Blytheville, Arkansas, where two of the five Nucor facilities are located, that can ship and receive materials via the Mississippi River, as well as by rail and truck. Kinder Morgan operates a terminal dedicated to storage for Nucor in Decatur, Alabama, as well as several other facilities in the Decatur area. The company also has terminals businesses in the Carolinas.
Kinder Morgan Terminals division president, John Schlosser, said:
Nucor is one of our largest customers in our Terminals division. This new agreement ensures that KMI will continue to provide handling, processing, warehousing and marine services to Nucor, the largest recycler and steel producer in North America. These facilities provide Nucor and other customers access to our growing national network of marine and rail terminals.
Shares of Kinder Morgan traded down about 1.6% Wednesday morning, at $18.01, in a 52-week range of $11.20 to 38.58.
Nucor stock traded up about 1.7%, at $49.80, in a 52-week range of $33.90 to $51.99.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.