We intend to maintain a high quality fleet of modern tankers that meet rigorous industry standards and our charterers’ requirements. We consider our fleet to be high quality based on the specifications to which our vessels were built and the reputation of each of the shipyards that built the tankers. We believe that our customers prefer greater reliability, fewer off-hire days and better operating efficiency of modern, high quality vessels. Our MR tankers include eco-efficient and eco- modified designed vessels which offer the benefits of lower fuel consumption and reduced emissions. We also intend to maintain the quality of our fleet through comprehensive planned and preventive maintenance programs.

We plan to take advantage of what we believe to be attractive asset values in the product tanker sector to expand our fleet through acquisitions. We believe that demand for tankers will expand as trade routes for liquid cargoes continue to evolve to developed markets, such as those in the United States, Europe and Japan, and as changes in refinery production patterns in developing regions/countries such as the Middle East, China and India, contribute to increases in the transportation of refined petroleum products. We believe that a diversified tanker fleet will enable us to serve customers across the major tanker trade routes and to continue to develop a global presence. We have strong relationships with reputable owners, charterers, banks and shipyards, which we believe will assist us in identifying attractive vessel acquisition opportunities. We plan to focus on acquisition of IMO II and III MR2 class product tankers of eight years of age or less built in Tier 1 Asian shipyards. We may also benefit in the future from the potential acquisition of one young MR tanker from affiliates of our chief executive officer. We will also consider acquisitions of newbuild vessels (i.e., re-sales) and focus primarily on tankers with modern fuel efficient designs given demands for lower bunker fuel consumption and concerns about environmental emissions.

Over the near-term, we expect to employ our vessels primarily through time charters and on the spot market. Maintaining optionality through significant spot exposure currently offers upside during periods of market strength. In addition, we expect to diversify charters by customer and staggered duration. We believe that this portfolio approach to vessel employment is an integral part of risk management which will provide stable cash flows while enabling us to take advantage of rising charter rates and market volatility.

Under both time and spot charters, we are responsible for the technical management and maintenance of the vessels, including periodic drydocking, cleaning, painting and performing work required by regulations. We have contracted with Pyxis Maritime Corp. (“Maritime”), one of our affiliates, to provide commercial, sale and purchase, and other operations and maintenance services to all of the vessels in our fleet. Our vessel owning subsidiaries have contracted with International Tanker Management Ltd. (“ITM”), a third party technical manager and subsidiary of V. Ships Limited, to provide crewing and technical management to all of the vessels in our fleet. Maritime and ITM have strong histories of complying with rigorous health, safety and environmental protection standards and have excellent vessel safety records. We meet charterers' preference for modern and eco tankers, which offer more operating reliability and efficiency. We intend to maintain these high standards to ensure high level of safety, customer service and support, while continuing to focus on solid margins and ship level financial discipline.

We intend to maintain financial flexibility to expand our fleet by targeting a moderate capital structure of debt and equity and a disciplined cost structure. As part of our risk management policies, at the time of vessel acquisition, we may enter into time charters which provide us predictable cash flows for the duration of the charter and attract debt financing at more favorable terms. We believe this strategy will support commercial lending and optimize our ability to expand our capital markets relationships.