MGG Magellan Midstream Hldgs Lp

TULSA, Okla., April 30 /PRNewswire-FirstCall/ -- Magellan Midstream Holdings, L.P. (NYSE:MGG) today reported first-quarter 2007 operating profit of $60.7 million compared to $59.0 million for first quarter 2006. Net income was $11.5 million during first quarter 2007 versus $10.8 million in first quarter 2006. MGG owns the general partner interest and incentive distribution rights of Magellan Midstream Partners, L.P. (NYSE:MMP) and reports its financial results on a consolidated basis with the financial results of MMP. The partnership currently has no separate operating activities apart from those conducted by MMP, and its cash flow is derived from cash distributions received from MMP. "MMP's assets continue to generate solid results, providing higher cash distributions to us again this quarter from our MMP investment," said Don Wellendorf, chief executive officer. "In turn, our MGG unitholders benefited from a 6% distribution increase this quarter, delivering on the growth opportunities available through a general partner investment." Related to first quarter 2007, MGG will receive distributions of $17.1 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders. Operating profit increased between quarters primarily due to MMP's increased transportation revenues, which were partially offset by revenues from a variable-rate storage agreement that positively benefited the 2006 period. First quarter 2007 was negatively impacted by a new tax established by the state of Texas that is based on the financial results of MMP's assets apportioned to that state. Basic and diluted net income per limited partner unit was 19 cents in first quarter 2007 and 8 cents in first quarter 2006, reflecting the period following the partnership's Feb. 2006 initial public offering. An analyst call with management regarding first-quarter 2007 financial results and 2007 outlook for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. To participate, dial (800) 810-0924 and provide code 2501524. Investors also may listen to the call via the partnership's web site at http://www.mgglp.com/investors/calendar.asp. Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on May 7. To access the replay, dial (888) 203-1112 and provide code 2501524. The replay also will be available at http://www.mgglp.com/. About Magellan Midstream Holdings, L.P. Magellan Midstream Holdings, L.P. is a publicly traded partnership formed to own the general partner interest and 100% of the incentive distribution rights in Magellan Midstream Partners, L.P. (NYSE:MMP), which primarily transports, stores and distributes refined petroleum products. More information is available at http://www.mgglp.com/. Portions of this document may constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission. MAGELLAN MIDSTREAM HOLDINGS, L.P. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per unit amounts) (Unaudited) Three Months Ended March 31, 2006 2007 Transportation and terminals revenues $130,446 $143,385 Product sales revenues 148,896 148,663 Affiliate management fee revenue 173 173 Total revenues 279,515 292,221 Costs and expenses: Operating 53,119 60,809 Product purchases 133,595 133,980 Depreciation and amortization 19,038 19,277 Affiliate general and administrative 15,503 18,229 Total costs and expenses 221,255 232,295 Equity earnings 719 763 Operating profit 58,979 60,689 Interest expense 13,602 14,222 Interest income (1,456) (911) Interest capitalized (204) (897) Minority interest expense 35,414 35,562 Debt placement fee amortization 488 456 Other expense 355 -- Income before income taxes 10,780 12,257 Provision for income taxes -- 724 Net income $10,780 $11,533 Allocation of net income: Portion applicable to ownership interests for the period before completion of initial public offering on February 15, 2006 $5,886 $ -- Portion applicable to partners' interest for the period after initial public offering 4,894 11,533 Net income $10,780 $11,533 Allocation of net income (loss) applicable to partners' interest for the period after initial public offering: Limited partners' interest $5,094 $11,807 General partner's interest (200) (274) Net income applicable to partners' interest for the period after initial public offering $4,894 $11,533 Basic and diluted net income per limited partner unit $0.08 $0.19 Weighted average number of limited partner units outstanding used for basic and diluted net income per unit calculation 62,647 62,649 MAGELLAN MIDSTREAM HOLDINGS, L.P. ALLOCATION OF NET INCOME (In thousands, unless otherwise noted) (Unaudited) Three Months Ended March 31, 2006 2007 Net income $10,780 $11,533 Portion of net income applicable to partners' interest for the period before initial public offering 5,886 -- Portion of net income applicable to partners' interest for the period after initial public offering 4,894 11,533 Direct charges to the general partner: Reimbursable general and administrative costs 201 276 Income before direct charges to general partner 5,095 11,809 General partner's share of income 0.0141% 0.0141% General partner's allocated share of net income before direct charges 1 2 Direct charges to general partner 201 276 Net loss allocated to general partner $(200) $(274) Portion of net income applicable to partners' interest for the period after initial public offering $4,894 $11,533 Less: net loss allocated to general partner (200) (274) Net income allocated to limited partners $5,094 $11,807 http://www.newscom.com/cgi-bin/prnh/20060201/DAW022LOGO http://photoarchive.ap.org/ DATASOURCE: Magellan Midstream Holdings, L.P. CONTACT: Paula Farrell of Magellan Midstream Holdings, L.P., +1-918-574-7650, Web site: http://www.mgglp.com/ http://www.magellanlp.com/

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