MGG Magellan Midstream Hldgs Lp

TULSA, Okla., May 6 /PRNewswire-FirstCall/ -- Magellan Midstream Holdings, L.P. (NYSE:MGG) today reported first-quarter 2008 operating profit of $101.3 million compared to $60.7 million for first quarter 2007. Net income was $17.6 million during first quarter 2008 versus $11.5 million in first quarter 2007. 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 distributable cash flow is derived from cash distributions received from MMP. Related to first quarter 2008, MGG will receive distributions of $20.9 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders. "MMP's very strong performance this quarter has allowed MGG to raise its distribution by 5% over last quarter, resulting in a distribution that is 23% higher than for the first quarter of 2007," said Don Wellendorf, chief executive officer. Operating profit increased between quarters due to higher financial results from each of MMP's business segments primarily driven by favorable commodity margins, additional profits from expansion projects, reduced expenses and a one-time gain on assignment of a third-party supply agreement. Non-controlling owners' interest in income of consolidated subsidiaries, which represents limited partner interests in MMP that MGG does not own, increased between quarters due to higher net income generated by MMP in first quarter 2008. Basic and diluted net income per limited partner unit was 29 cents in first quarter 2008 and 19 cents in first quarter 2007. An analyst call with management regarding first-quarter 2008 financial results and outlook for the remainder of 2008 for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. To participate, dial (888) 596-2573 and provide code 4963639. Investors also may listen to the call via the partnership's web site at http://www.mgglp.com/webcasts.asp. Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on May 12. To access the replay, dial (888) 203-1112 and provide code 4963639. The replay also will be available at http://www.mgglp.com/. About Magellan Midstream Holdings, L.P. Magellan Midstream Holdings, L.P. (NYSE:MGG) 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. Contact: Paula Farrell (918) 574-7650 MAGELLAN MIDSTREAM HOLDINGS, L.P. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per unit amounts) (Unaudited) Three Months Ended March 31, 2007 2008 Transportation and terminals revenues $143,385 $144,805 Product sales revenues 148,663 201,718 Affiliate management fee revenue 173 183 Total revenues 292,221 346,706 Costs and expenses: Operating 60,809 55,425 Product purchases 133,980 177,568 Depreciation and amortization 19,277 21,013 Affiliate general and administrative 18,229 18,290 Total costs and expenses 232,295 272,296 Gain on assignment of supply agreement - 26,492 Equity earnings 763 405 Operating profit 60,689 101,307 Interest expense 14,222 12,939 Interest income (911) (296) Interest capitalized (897) (1,302) Non-controlling owners' interest in income of consolidated subsidiaries 35,562 71,736 Debt placement fee amortization 456 168 Income before provision for income taxes 12,257 18,062 Provision for income taxes 724 443 Net income $11,533 $17,619 Allocation of net income: Limited partners' interest $11,807 $18,024 General partner's interest (274) (405) Net income $11,533 $17,619 Basic and diluted net income per limited partner unit $0.19 $0.29 Weighted average number of limited partner units outstanding used for basic and diluted net income per unit calculation 62,649 62,654 MAGELLAN MIDSTREAM HOLDINGS, L.P. ALLOCATION OF NET INCOME (In thousands, unless otherwise noted) (Unaudited) Three Months Ended March 31, 2007 2008 Net income $11,533 $17,619 Direct charges to the general partner: Reimbursable general and administrative costs 276 408 Income before direct charges to general partner 11,809 18,027 General partner's share of income 0.0141% 0.0141% General partner's allocated share of net income before direct charges 2 3 Direct charges to general partner 276 408 Net loss allocated to general partner $(274) $(405) Net income $11,533 $17,619 Less: net loss allocated to general partner (274) (405) Net income allocated to limited partners $11,807 $18,024 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/

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