About Kirby

Kirby Corporation is the domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The company, through its Marine Transportation segment (‘KMT’), transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. Through its Distribution and Services segment (‘KDS’), the company sells after-market service and genuine replacement parts for engines, transmissions, reduction gears, and power generation equipment used in oil and gas and commercial and industrial applications. The company also rents a variety of power generation and industrial equipment, manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufactures electric power generation equipment for oilfield service customers. Business and Property The company, through its subsidiaries, conducts operations in two reportable business segments: Marine Transportation; and Distribution and Services. The company, through KMT, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. The company operates offshore dry-bulk barge and tugboat units engaged in the offshore transportation of dry-bulk cargoes in the United States coastal trade. The segment is a provider of transportation services for its customers and, in almost all cases, does not assume ownership of the products that it transports. All of the company’s vessels operate under the United States flag and are qualified for domestic trade under the Jones Act. The company, through KDS, sells after-market services and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, energy storage battery systems, and related oilfield services equipment, rebuilds component parts or entire diesel engines, transmissions and reduction gears, and related equipment used in oilfield services, marine, power generation, on-highway and other industrial applications. The company also rents equipment, including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufacturers cementing and pumping equipment, as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield service and railroad customers. Marine Transportation segment KMT is primarily a provider of transportation services by tank barge for the inland and coastal markets. As of December 31, 2023, the equipment owned or operated by KMT consisted of 1,076 inland tank barges with 23.7 million barrels of capacity, and an average of 281 inland towboats during the fourth quarter of 2023, as well as 28 coastal tank barges with 2.9 million barrels of capacity, 25 coastal tugboats, four offshore dry-bulk cargo barges, four offshore tugboats, and one docking tugboat. The 281 inland towboats, 25 coastal tugboats, four offshore tugboats and one docking tugboat provide the power source and the 1,076 inland tank barges, 28 coastal tank barges and four offshore dry-bulk cargo barges provide the freight capacity for KMT. When the power source and freight capacity are combined, the unit is called a tow. The company’s inland tows generally consist of one towboat and from one to up to 25 tank barges, depending upon the horsepower of the towboat, the waterway infrastructure capacity and conditions, and customer requirements. The company’s coastal and offshore tows primarily consist of one tugboat and one tank barge or dry-bulk cargo barge. Marine Transportation Industry The company’s coastal tank barge fleet capacity of 2.9 million barrels equates to approximately 4,800 railroad tank cars or approximately 15,300 tractor-trailer tank trucks. Inland Tank Barge Industry The company operates within the United States inland tank barge industry, a diverse and independent mixture of approximately 25 large integrated transportation companies and small operators, as well as captive fleets owned by refining and petrochemical companies. The inland tank barge industry provides marine transportation of bulk liquid cargoes for customers and, in the case of captives, for their own account, throughout the Mississippi River and its tributaries and on the Gulf Intracoastal Waterway. The most significant markets in this industry include the transportation of petrochemicals, black oil, refined petroleum products, and agricultural chemicals. The company operates in each of these markets. The company’s principal distribution system encompasses the Gulf Intracoastal Waterway from Brownsville, Texas, to Port St. Joe, Florida, the Mississippi River System and the Houston Ship Channel. The Mississippi River System includes the Arkansas, Illinois, Missouri, Ohio, Red, Tennessee, Yazoo, Ouachita and Black Warrior Rivers and the Tennessee-Tombigbee Waterway. The company’s 1,076 inland tank barges represent approximately 27% of the industry’s approximately 4,007 inland tank barges. The company’s inland division of KMT also owns a shifting operation and fleeting facility for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana; and a shipyard for building inland towboats and providing routine maintenance on marine vessels. The company also owns a two-thirds interest in Osprey Line, L.L.C. (‘Osprey’), a transporter of project cargoes and cargo containers by barge on the United States inland waterway system. Coastal Tank Barge Industry The company also operates in the United States coastal tank barge industry, operating tank barges in the 195,000 barrels or less category. This market is composed of approximately 20 large integrated transportation companies and small operators. The 195,000 barrels or less category coastal tank barge industry primarily provides regional marine transportation distribution of bulk liquid cargoes along the United States’ Atlantic, Gulf and Pacific coasts, in Alaska and Hawaii, and to a lesser extent, on the Great Lakes. Products transported are primarily refined petroleum products and black oil from refineries and storage facilities to a variety of destinations, including other refineries, distribution terminals, power plants and ships, the regional movement of crude oil and natural gas condensate to Gulf Coast, Northeast and West Coast refineries; and the movement of petrochemicals primarily from Gulf Coast petrochemical facilities to end users. Products Transported The company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. During 2023, the company’s inland marine transportation operation moved over 56 million tons of liquid cargo on the United States inland waterway system. Petrochemicals. Bulk liquid petrochemicals transported include such products as benzene, styrene, methanol, acrylonitrile, xylene, naphtha and caustic soda. These products are consumed in the production of paper, fiber and plastics. Pressurized products, including butadiene, isobutane, propylene, butane and propane, all requiring pressurized conditions to remain in stable liquid form, are transported in pressure barges. The transportation of petrochemical products represented 51% of the segment’s 2023 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil. Black oil transported includes such products as residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, asphalt, carbon black feedstock, crude oil, natural gas condensate and ship bunkers (engine fuel). Such products represented 26% of the segment’s 2023 revenues. Black oil customers are refining companies, marketers, and end users that require the transportation of black oil between refineries and storage terminals, to other refineries and to power plants. Ship bunker customers are oil companies and oil traders in the bunkering business. Refined Petroleum Products. Refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, heating oil and diesel fuel, and represented 20% of the segment’s 2023 revenues. The company also classifies ethanol in the refined petroleum products category. Customers are oil and refining companies, marketers and ethanol producers. Agricultural Chemicals. Agricultural chemicals transported represented 3% of the segment’s 2023 revenues. Agricultural chemicals include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers mainly consist of domestic and foreign producers of such products. Marine Transportation Operations KMT operated a fleet of 1,076 inland tank barges and an average of 281 inland towboats during the 2023 fourth quarter, as well as 28 coastal tank barges and 25 coastal tugboats. The segment also operated four offshore dry-bulk cargo barges, four offshore tugboats, and one docking tugboat transporting dry-bulk commodities in United States coastal trade. Inland Operations. The segment’s inland operations are conducted through a wholly owned subsidiary, Kirby Inland Marine, LP (‘Kirby Inland Marine’). Kirby Inland Marine’s operations consist of the Canal, Linehaul and River fleets, as well as barge fleeting services. The Canal fleet transports petrochemical feedstocks, processed chemicals, pressurized products, black oil, and refined petroleum products along the Gulf Intracoastal Waterway, the Mississippi River below Baton Rouge, Louisiana, and the Houston Ship Channel. Petrochemical feedstocks and certain pressurized products are transported from one plant to another plant for further processing. Processed chemicals and certain pressurized products are moved to waterfront terminals and chemical plants. Black oil is transported to waterfront terminals and products, such as No. 6 fuel oil are transported directly to the end users. Refined petroleum products are transported to waterfront terminals along the Gulf Intracoastal Waterway for distribution. The Linehaul fleet transports petrochemical feedstocks, chemicals, agricultural chemicals and lube oils along the Gulf Intracoastal Waterway, Mississippi River and the Illinois and Ohio Rivers. Loaded tank barges are staged in the Baton Rouge area from Gulf Coast refineries and petrochemical plants, and are transported from Baton Rouge, Louisiana to waterfront terminals and plants on the Mississippi, Illinois and Ohio Rivers, and along the Gulf Intracoastal Waterway, on regularly scheduled linehaul tows. Tank barges are dropped off and picked up going up and down river. The River fleet transports petrochemical feedstocks, chemicals, refined petroleum products, agricultural chemicals and black oil along the Mississippi River System above Baton Rouge. The River fleet operates unit tows, where a towboat and generally a dedicated group of barges operate on consecutive voyages between loading and discharge points. Petrochemical feedstocks and processed chemicals are transported to waterfront petrochemical and chemical plants, while black oil, refined petroleum products and agricultural chemicals are transported to waterfront terminals. The inland transportation of petrochemical feedstocks, chemicals and pressurized products is generally consistent throughout the year. Transportation of refined petroleum products, certain black oil and agricultural chemicals is generally more seasonal. Movements of black oil, such as asphalt, generally increase in the spring through fall months. Movements of refined petroleum products, such as gasoline blends, generally increase during the summer driving season, while heating oil movements generally increase during the winter months. Movements of agricultural chemicals generally increase during the spring and fall planting seasons. The marine transportation inland operation moves and handles a broad range of sophisticated cargoes. To meet the specific requirements of the cargoes transported, the inland tank barges may be equipped with self-contained heating systems, high-capacity pumps, pressurized tanks, refrigeration units, stainless steel tanks, aluminum tanks or specialty coated tanks. Of the 1,076 inland tank barges operated, 826 are petrochemical and refined petroleum products barges, 157 are black oil barges, 83 are pressure barges and 10 are refrigerated anhydrous ammonia barges. Of the 1,076 inland tank barges, 1,043 are owned by the company and 33 are leased. The fleet of 281 inland towboats for the 2023 fourth quarter ranges from 800 to 6,100 horsepower. Of the 281 inland towboats, 214 are owned by the company and 67 are chartered. Towboats in the 800 to 2,100 horsepower classes provide power for barges used by the Canal and Linehaul fleets on the Gulf Intracoastal Waterway and the Houston Ship Channel. Towboats in the 1,400 to 3,200 horsepower classes provide power for both the River and Linehaul fleets on the Gulf Intracoastal Waterway and the Mississippi River System. Towboats above 3,600 horsepower are typically used on the Mississippi River System to move River fleet unit tows and provide Linehaul fleet towing. Based on the capabilities of the individual towboats used in the Mississippi River System, the tows range in size from 10,000 to 30,000 tons. Marine transportation services for inland movements are conducted under term contracts, which have contract terms of 12 months or longer, or spot contracts, which have contract terms of less than 12 months, with customers with whom the company has traditionally had long-standing relationships. Typically, term contracts range from one to three years, some of which have renewal options. All of the company’s inland tank barges used in the transportation of bulk liquid products are of double hull construction and are capable of controlling vapor emissions during loading and discharging operations in compliance with occupational safety and health regulations and air quality regulations. The company has the ability to offer its customers optimized distribution capabilities throughout the Mississippi River System and the Gulf Intracoastal Waterway. Such capabilities offer economies of scale from matching tank barges, towboats, products, and destinations efficiently to meet its customers’ requirements. Through the company’s proprietary vessel management computer system, the company’s barge and towboat fleet is dispatched from a centralized dispatch group. The towboats are equipped with cellular and satellite positioning and communication systems that automatically transmit the location of the towboat to the company’s customer service department. Electronic orders are communicated to vessel personnel with reports of towing activities fed back electronically to the customer service department. The electronic interface between the customer service department and the vessel enables matching of customer needs to barge capabilities, thereby promoting efficient utilization of the tank barge and towboat fleet. The company’s customers are able to access information concerning the movement of their cargoes, including barge locations, through the company’s proprietary electronic customer service portal. Kirby Inland Marine operates the largest commercial tank barge fleeting service (barge storage facilities) in numerous ports, including Houston, Corpus Christi, Freeport and Orange, Texas, Baton Rouge, Lake Charles and New Orleans, Louisiana, Mobile, Alabama, and Greenville, Mississippi. Included in the fleeting service is a shifting operation and fleeting service for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana. Kirby Inland Marine provides shifting and fleeting service for its own barges, as well as for customers and third party carriers, transferring barges within the areas noted. Kirby Inland Marine also provides shore-based barge tankermen to the company and third parties. Services to the company and third parties cover the Gulf Coast, mid-Mississippi Valley, and the Ohio River Valley. San Jac Marine, LLC (‘San Jac’), a subsidiary of Kirby Inland Marine, owns and operates a shipyard in Channelview, Texas, which builds marine vessels for both inland and coastal applications, and provide maintenance and repair services. Kirby Inland Marine also builds inland towboats and performs routine maintenance and repairs at the San Jac shipyard. The company owns a two-thirds interest in Osprey, which transports project cargoes and cargo containers by barge on the United States inland waterway system. Coastal Operations The segment’s coastal operations are conducted through wholly owned subsidiaries, Kirby Offshore Marine, LLC (‘Kirby Offshore Marine’) and Kirby Ocean Transport Company (‘Kirby Ocean Transport’). Kirby Offshore Marine provides marine transportation of refined petroleum products, petrochemicals and black oil in coastal regions of the United States. The coastal operations are conducted along the eastern seaboard, western seaboard and the Gulf Coast. The company also operates equipment, to a lesser extent, in the Eastern and Western Canadian Provinces. The tank barges operating are in the 10,000 to 195,000 barrel capacity range and coastal tugboats in the 2,400 to 10,000 horsepower range. Kirby Offshore Marine’s vessels call on various coastal ports from Maine to Texas, servicing refineries, storage terminals and power plants. The company also services refineries and storage terminals from Southern California to Washington State. The coastal transportation of refined petroleum products and black oil is impacted by seasonality and is partially dependent on the area of operations. Operations along the West Coast of the United States have been subject to more seasonal variations in demand than the operations along the East Coast and Gulf Coast regions of the United States. The movements of refined petroleum products, such as various blends of gasoline are strongest during the summer driving season while heating oil generally increases during the winter months. The coastal fleet consists of 28 tank barges with 2.9 million barrels of capacity, primarily transporting refined petroleum products, black oil and petrochemicals. The company owns all 28 of the coastal tank barges. Of the 28 coastal tank barges, 20 are refined petroleum products and petrochemical barges and 8 are black oil barges. The company operates 25 coastal tugboats ranging from 2,400 to 11,000 horsepower, of which all 24 are owned by the company. Coastal marine transportation services are typically conducted under term contracts, some of which have renewal options, for customers with which the company has traditionally had long-standing relationships. During 2023, approximately 85% of the coastal marine transportation revenues were under term contracts and 15% were under spot contracts. Kirby Offshore Marine also operates a fleet of two offshore dry-bulk barge and tugboat units involved in the transportation of sugar and other dry products between Florida and East Coast ports. These vessels have typically operated under term contracts of affreightment of a year or longer. Kirby Ocean Transport owns and operates a fleet of two offshore dry-bulk barges, two offshore tugboats and one docking tugboat. Kirby Ocean Transport operates primarily under term contracts of affreightment. Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer, sugar and other bulk cargoes on a spot basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin. Contracts and Customers Marine transportation inland and coastal services are conducted under term or spot contracts for customers with whom the company has traditionally had long-standing relationships. The company enters into agreements with its customers to transport cargo from a designated origin to a designated destination at a set rate (affreightment) or at a daily rate (time charter). Distribution and Services segment The company, through its wholly owned subsidiary, Kirby Distribution & Services, Inc. and its wholly owned subsidiaries Kirby Engine Systems LLC, (‘Kirby Engine Systems’), Stewart & Stevenson LLC (‘S&S’), United Holdings LLC (‘United’), and Diesel Dash LLC and through Kirby Engine Systems’ wholly owned subsidiaries Marine Systems, Inc. (‘Marine Systems’) and Engine Systems, Inc. (‘Engine Systems’), serves two markets, commercial and industrial, and oil and gas. The company sells genuine replacement parts, provides service mechanics to overhaul and repair engines, transmissions, reduction gears and related oilfield service equipment, rebuilds component parts or entire diesel engines, transmissions and reduction gears, electrical motors, drives, and controls, specialized electrical distribution and control systems, energy storage battery systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other commercial and industrial applications. Customers are served through a network of 63 branch locations across 17 states and Colombia, South America, as well as a proprietary on-line marketplace, www.dieseldash.com. The company manufactures and remanufactures oilfield service equipment, including pressure pumping units, for North American, as well as for international oilfield service companies, and oil and gas operator and producer markets. The company also sells engines, transmissions, power generation systems, and rents equipment, including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of commercial and industrial applications, including for oilfield service and railroad customers. For the commercial and industrial market, the company sells original equipment manufacturers (‘OEM’) replacement parts and new diesel engines, provides service mechanics and maintains facilities to overhaul and repair diesel engines and ancillary products for marine and on-highway transportation companies, and industrial companies. The company provides engineering and field services, OEM replacement parts and safety-related products to power generation operators and to the nuclear industry, manufactures engine generator and pump packages for power generation operators and municipalities, offers power generation systems customized for specific commercial and industrial applications, and rents equipment, including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets. For the oil and gas market, the company sells OEM replacement parts, sells and services diesel engines, pumps and transmissions, manufactures and remanufactures pressure pumping units, manufactures cementing and pumping equipment, as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems. Customers include oilfield service companies, and oil and gas operators and producers. KDS also provides service to KMT, which accounted for approximately 3% of KDS’s 2023 revenues. Commercial and Industrial Operations The company serves the marine, on-highway, power generation, and other commercial and industrial markets primarily in the United States. The commercial and industrial operations represented approximately 59% of the segment’s 2023 revenues. The company is engaged in the overhaul and repair of medium-speed and high-speed marine diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry. Medium-speed diesel engines have an engine speed of 400 to 1,000 revolutions per minute (‘RPM’) with a horsepower range of 800 to 32,000. High-speed diesel engines have an engine speed of over 1,000 RPM and a horsepower range of 50 to 8,375. The company services medium-speed and high-speed diesel engines utilized in the inland and offshore barge industries. It also services marine equipment and offshore drilling equipment used in the offshore petroleum exploration and oilfield service industry, marine equipment used in the offshore commercial fishing industry, harbor docking vessels, commercial ferries, vessels owned by the United States government and large pleasure crafts. The company has marine repair operations throughout the United States providing in-house and in-field repair capabilities and related parts sales. The company’s emphasis is on service to its customers, and it sends its crews from any of its locations to service customers’ equipment anywhere in the world. The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, Paducah, Kentucky, Seattle, Washington, and Tampa, Florida, serving as the authorized distributor for EMD Power Products (‘EMD’) throughout the United States. The company is also a distributor and representative for certain Alfa Laval products in the Midwest and on the East Coast, Gulf Coast, and West Coast. All of the marine locations are authorized distributors for Falk Corporation reduction gears and Oil States Industries, Inc. clutches. The Chesapeake, Virginia operation concentrates on East Coast inland and offshore dry-bulk, tank barge and harbor docking operators, and the United States government. The Houma, Louisiana operation concentrates on the inland and offshore barge and oilfield services industries. The Tampa, Florida operation concentrates on Gulf of Mexico offshore dry-bulk, tank barge and harbor docking operators. The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lakes carriers. The Seattle, Washington operation concentrates on the offshore commercial fishing industry, the offshore barge industry, the United States government, and other customers in Alaska, Hawaii and the Pacific Rim. The high-speed marine operations are located in Houston, Texas, Houma, Baton Rouge, Belle Chasse and New Iberia, Louisiana, Paducah, Kentucky, Mobile, Alabama, Lodi and Thorofare, New Jersey, and several locations in Florida. The company serves as a factory-authorized marine dealer for Caterpillar diesel engines in multiple states. The company also operates factory-authorized full service marine distributorships/dealerships for Cummins, Detroit Diesel, John Deere, MTU, and Volvo Penta, and Kohler diesel engines, as well as Falk, Lufkin and Twin Disc marine gears. High-speed diesel engines provide the main propulsion for a significant amount of the United States flagged commercial vessels and large pleasure craft vessels, other marine applications, including engines for power generators and barge pumps. The company distributes, sells parts for and services diesel engines and transmissions for on-highway use and provides in-house and in-field service capabilities. The company is the largest on-highway distributor for Allison Transmission and Detroit Diesel/Daimler Truck North America, providing parts, service and warranty on engines, transmissions and related equipment in Arkansas, Colorado, Florida, Louisiana, New Mexico, New York, Oklahoma, Texas, Wyoming, and the country of Colombia. The company also provides similar service for off-highway use and additionally has distributor rights for Deutz and Isuzu diesel engines. Off-highway applications are primarily surface and underground mining equipment, including loaders, crawlers, crushers, power screens, pumps, cranes, generators, and haul trucks, as well as equipment rental. The company is engaged in the overhaul and repair of diesel engines and generators, and related parts sales for power generation customers. The company is also engaged in the sale and distribution of diesel engine parts, engine modifications, generator modifications, controls, governors and diesel generator packages to the nuclear industry. The company services users of diesel engines that provide emergency standby, peak and base load power generation. The company also sells power generation systems that are customized for specific applications and the rental of power generation systems. The company has power generation operations throughout the United States providing in-house and in-field repair capabilities and products for power generation applications. Through its Rocky Mount, North Carolina operation, the company serves as the exclusive worldwide distributor of EMD products to the nuclear industry, the worldwide distributor for Woodward, Inc. products to the nuclear industry, the worldwide distributor of Cooper Machinery Services (‘Cooper’) products to the nuclear industry and owns the assets and technology necessary to support the Nordberg medium-speed diesel engines used in nuclear applications. In addition, the Rocky Mount operation is an exclusive distributor for Norlake Manufacturing Company transformer products to the nuclear industry, an exclusive distributor of Hannon Company generator and motor products to the nuclear industry, and a non-exclusive distributor of analog Weschler Instruments metering products and an exclusive distributor of digital Weschler metering products to the nuclear industry. The company is also a non-exclusive distributor of Ingersoll Rand air start equipment to the nuclear industry worldwide. The company sells pre-packaged and fabricated power generation systems for emergency, standby and auxiliary power for commercial and industrial applications. The company also offers rental generator systems from 50 to 2,000 kilowatts of power to a broad range of customers. The company is also engaged in the rental of industrial compressors, high capacity lift trucks, and refrigeration trailers. In addition, the company provides accessory products, such as cables, hoses, fuel cells, air dryers, air compressor boosters and ground heaters. Lastly, the company is a dealer for Thermo King refrigeration systems for trucks, railroad cars, and other land transportation markets in Texas and Colorado. Commercial and Industrial Customers The company’s major marine customers include inland and offshore barge operators, oilfield service companies, offshore fishing companies, other marine transportation entities, the United States government and large pleasure crafts. The company’s on-highway customers are long-haul and short-haul trucking companies, commercial and industrial companies with truck fleets, buses owned by municipalities and private companies. Off-highway companies include surface and underground mining operations with a large variety of equipment. The company’s power generation customers are domestic utilities and the worldwide nuclear power industry, municipalities, universities, medical facilities, data centers, petrochemical plants, manufacturing facilities, shopping malls, office complexes, residential and other industrial users. The company’s rental customers are primarily commercial and industrial companies, and residential customers with short-term rental requirements. The company’s primary marine competitors are independent distribution and services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. The company is one of a limited number of authorized resellers of EMD, Caterpillar, Cummins, Detroit Diesel, John Deere, MTU and Volvo Penta parts. The company is also the marine distributor for Falk and Lufkin reduction gears throughout the United States. The company’s primary power generation competitors are other independent diesel service companies and manufacturers. The company is the exclusive worldwide distributor of EMD, Cooper, Woodward, Nordberg, Norlake and Hannon parts for the nuclear industry, and non-exclusive distributor of Weschler parts and Ingersoll Rand air start equipment for the nuclear industry. Specific regulations relating to equipment used in nuclear power generation require extensive testing and certification of replacement parts. OEM parts need to be properly tested and certified for nuclear applications. Oil and Gas Operations The company is engaged in the distribution and service of high-speed diesel engines, pumps and transmissions, and the manufacture and remanufacture of oilfield service equipment. The oil and gas operations represented approximately 41% of the segment’s 2023 revenues. The company offers custom fabricated oilfield service equipment that is fully tested and field ready. The company manufactures and remanufactures oilfield service equipment, including pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders, coil tubing, well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems. The company sells OEM replacement parts, and sells and services diesel engines, electric drives, motors and controls, pumps and transmissions, and offers in-house and in-field service capabilities. The company is the largest off-highway distributor for Allison Transmission and a major distributor for MTU in North America. The company’s manufacturing and remanufacturing facilities and service facilities are based in Houston, Texas and Oklahoma City, Oklahoma, both key oil and gas producing regions. Oil and Gas Customers The company’s major oil and gas customers include large and mid-cap oilfield service providers, oil and gas operators and producers. The company has long standing relationships with most of its customers. Governmental Regulations In KMT, the company’s marine transportation operations are subject to regulation by the United States Coast Guard (‘USCG’), federal laws, state laws, the laws of other countries when operating in their waters, and certain international conventions. Most of the company’s tank barges are inspected by the USCG and carry certificates of inspection. The company’s inland and coastal towing vessels and coastal dry-bulk barges are also subject to USCG regulations. All of the company’s coastal tugboats and coastal tank and dry-bulk barges are built to American Bureau of Shipping (‘ABS’) classification standards and/or statutory requirements issued by the USCG, and are inspected periodically by ABS and/or the USCG to maintain the vessels in class and compliant with all U.S. statutory requirements, as applicable to the vessel. The crews employed by the company aboard inland and coastal vessels, including captains, pilots, engineers, tankermen and ordinary seamen, are licensed by the USCG. Further, to the extent the company does business with foreign counterparties, it is subject to additional rules and regulations, in particular, with regard to import and export compliance and the Foreign Corrupt Practices Act (‘FCPA’), or similar local applicable anti-bribery laws. The company provides anti-corruption training to all of its employees. The company monitors its citizenship status and meets the requirements of the Jones Act for its owned and operated vessels. A significant portion of the inland waterways on which the company’s vessels operate is maintained by the Army Corps of Engineers. The Maritime Transportation Security Act of 2002 requires, among other things, submission to and approval by the USCG of vessel and waterfront facility security plans (‘VSP’ and ‘FSP’, respectively). The company maintains approved VSP and FSP and is operating in compliance with the plans for all of its vessels and facilities that are subject to the requirements. Environmental Regulations The company maintains Vessel General Permits and has established recordkeeping and reporting procedures in compliance with the EPA’s interim requirements. Commencing with the Federal Water Pollution Control Act of 1972, as amended, vessels over 300 gross tons operating in the Exclusive Economic Zone of the United States have been required to maintain evidence of financial ability to satisfy statutory liabilities for oil and hazardous substance water pollution. This evidence is in the form of a Certificate of Financial Responsibility (‘COFR’) issued by the USCG. The majority of the company’s tank barges are subject to this COFR requirement, and the company has fully complied with this requirement since its inception. The OPA and several state statutes of similar intent require the majority of the vessels and terminals operated by the company to maintain approved oil spill contingency plans as a condition of operation. The company has approved plans that comply with these requirements. The company’s inspected vessel operations are primarily regulated by the USCG for occupational health standards. Uninspected vessel operations, the company’s shore-based personnel, and employees in the company’s KDS segment are subject to OSHA regulations. Kirby Offshore Marine is certified under ABS ISM standards. History The company was founded in 1921. It was formerly known as Kirby Exploration Company, Inc. and changed its name to Kirby Corporation in 1990.