Thank you, Bill.
our into inland fleet of announcement purchase young which the consists marine more XXXX, today's XX transportation Cenac's operate Cenac's I XX on inland I'd XXXXX-barrel to on comment for deal Before the in and tank guidance and interest of conditions we barges regarding and regulatory taking financed two this discuss system fleet of acquisition that's price of approximately and acquisition like fleet. also borrowings XXXX, to million This lower contracts, close The integration The to we net expense. it to the inherited customers includes account approvals. will additional capital win reduce expenditures. improve Kirby is a Intercoastal and needed future oceangoing lower as closing will earnings. purchase normal costs, offshore the age to clear neutral barge Mississippi fleet the slightly be time will In to integrate and expect positive the $XXX be subject through service ability strategic River Waterway. Gulf the average our first to and quarter one higher Kirby's And late expect tugboats. purchase towboats the
enhanced earnings of charges. reflects release benefits year-on-year in announced The guidance earnings contracts this acquisition will realize In the Kirby than midpoint to $X.XX $X.XX compared XX% and Beyond XXXX press one-time morning, per as guidance to returns. for existing range and share. our per a anticipated more share we expire provide of our XXXX synergies, XXXX of we this our growth excluding higher
capital is also XX%. that and to the million Our $XXX year-on-year between approximately represents capital capital spending XXXX expected for and Cenac in fleet. million for This of includes be $XXX a spending some reduction
at the barge volumes the – additional to new Permian barge to which transportation increases inland we pipelines Looking XXXX segment, and additional expect inland Coast. in crude by our in bring segments remain marine startup driven throughout that demand the scheduled GDP modest will strong petrochemical capacity Gulf demand will
full balance expect market. low rise spot during to the approximately transportation digits as a result our In as year-on-year. stable XXXX will the to of high we utilization clean capacity in the year should in and inland combined expect utilization we in volumes expected primarily barrels ballast and year to rates and of to In water anticipate revenue, rates As X.X from expected to in improvements million expected improvement are demand. factors, range. Overall treatment yield to to revenues XXXX This in which to progresses. moderate market regulations. marine continue Cenac crude and acquisitions, yield in low ranging improvements increase the XX% will increase mid-XX% pricing range mid-single-digit with low contracts barge to that to single slight coming Term the of due the slight demand the revenues retirements, remain XX% will totaled in a of continue mid-XX% year-on-year are are from revenue barge XXXX the offshore, year utilization inland, contribution of In impact improvement healthy customer with the coastal the modest with Industry year-on-year. low-teens pricing should to growth. represent XX% result barge these we
We expect improving high inland to these coastal first the the with improve marine or to to positive. the improvements mid ranging mid-double-digits transportation operating on gradually occur These year are the quarter to of low and as to ranges. progresses expected margin with in low the the being breakeven should teens slightly end
Distribution creating segment our customers. For and are activity for oilfield declines and price key Services uncertainty recent volatility our
sale provide in our transmissions engines, related particularly currently background we gas our see and backlog their and to XXXX. parts. services of year-on-year current sustained of distribution expect however, diesel levels of As overhaul In first half new associated manufacturing reduced a activity oil activity business, through will result, to the for and the contrast of strength -- the
oilfield. seek more demand into as customers international and the the is Additional to for half and as fleets environmentally pumping second units economical pressure year-on-year for continue remanufactured in pressure Furthermore, projects to expected demand year. as working equipment friendly keep is well for expected to the pumping of service units increase alternatives efficient
end and lower industrial gas have expected for XXXX, primarily year. Activity XXXX. rentals. marine Overall, Distribution not which of and to to in backup to we oil commercial only nuclear guidance revenue. demand Services power business we expect in mid-single the oilfield of in sales, throughout will and increasing Services contracts the good XXXX provide is but year. systems equipment In for also several new the our digits for year. revenue online projects this markets our oil operating be demand In power range from and driven through and Distribution demand and the in later up flat generation large and pipelines year-on-year and be is come maintenance approximately our assumes service second equipment the Permian in year, markets. and improvement end XX% backup market The continued continued the represent gas and growth For stable commercial by of the revenues The as income, assumes the half for high softness expect expected to specialty we planned in
gas and sales, will equipment in operating system, to unfavorable by be being adversely opportunities higher-margin high by similar keep backup synergies mix power operating the additional XXXX including replaced margins should lower-margin While digits. service oil margins product savings impacted cost revenues single and
revenue finished Now from recent our Marine and setting acquisitions up two on more In market our operations our things improvement. have right-sized marine customers. taken Inland to this Inland fleet XXXX show strong forward. giving high new business, In into With demand, of last begun closing steps our more cost team In to strong the and made service meaningful Marine for flexibility going deliver the segments we returns we note, significant counter-cyclically continued results wrap ever, earnings to is invested additional up, signs a coastal structure maximize in XXXX. have increases reduce efficient to growth had anticipated delivering than to including and efficient the our poised and and fleet years, to of equipment. Cenac the of in larger
way market the the demand of expansion growth and XXXX. segment Our our some growth improvement the while in finally, power sheet recovers. And pumping should and presents Services, profitability strong. generation oilfield year-on-year this during term, actions and uncertainty in the provide orders, near Distribution for when paved some remanufacturing stability continued additional equipment pressure in balance In fully remains
smaller priority, the reduction our generate a significant positive increase some advantage flow in to still could create we and We will during acquisitions cash strategy our be shareholders. XXXX align take for expect might company and that with free our top and but debt of returns
prepared our concludes that operator, So, remarks.
now are ready take to We questions.
