Magellan Midstream Assets Remain Fully Operational Despite Midwest Flooding; Increases Earnings Guidance for Quarter and Year
June 23 2008 - 8:20AM
PR Newswire (US)
TULSA, Okla., June 23 /PRNewswire-FirstCall/ -- Magellan Midstream
Partners, L.P. (NYSE:MMP) today confirmed that its refined
petroleum products terminal and pipeline assets remain fully
operational, despite flooding in certain Midwest areas. Based on
operating results so far this year, management is increasing its
second-quarter 2008 net income per unit guidance to 76 cents from
66 cents and its annual guidance to $3.13 from $3.03, which would
be record annual financial results for the partnership. While
pipeline volumes are expected to be lower than previously
forecasted, management currently expects them to be in-line with
2007 volumes for both second quarter and full-year 2008. Higher
shipments of liquefied petroleum gases (LPGs) are expected to
offset lower refined products volumes, which are projected to
decline about 3% during second quarter and 1% for the year compared
to the related 2007 period primarily due to high fuel prices, the
potential impact of recent wet conditions in the Midwest that could
reduce farming diesel demand and higher ethanol blending. However,
increases in transportation tariffs and higher profits from
commodity-related activities are expected to benefit the quarter
and year. "While recent high petroleum prices are currently having
a negative impact on our pipeline volumes, the favorable impact of
high prices on our commodity-driven activities is more than
offsetting the impact on volumes, allowing us to increase our
earnings guidance for the year," said Don Wellendorf, president and
chief executive officer. "We remain committed to our stated goal of
increasing distributions by 8% to 10% per year through 2010." About
Magellan Midstream Partners, L.P. Magellan Midstream Partners, L.P.
(NYSE:MMP) is a publicly traded partnership formed to own, operate
and acquire a diversified portfolio of energy assets. The
partnership primarily transports, stores and distributes refined
petroleum products. More information is available at
http://www.magellanlp.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 MMP. More information is
available at http://www.mgglp.com/. Portions of this document
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. Among the key risk factors that
may have a direct impact on the partnership's results of operations
and financial condition are: (1) its ability to identify growth
projects or to complete identified projects on time and at
projected costs; (2) price fluctuations for natural gas liquids and
refined petroleum products; (3) overall demand for natural gas
liquids, refined petroleum products, natural gas, oil and ammonia
in the United States; (4) changes in the partnership's tariff rates
implemented by the Federal Energy Regulatory Commission, the United
States Surface Transportation Board and state regulatory agencies;
(5) shut-downs or cutbacks at major refineries, petrochemical
plants, ammonia production facilities or other businesses that use
or supply the partnership's services; (6) changes in the throughput
or interruption in service on petroleum products pipelines owned
and operated by third parties and connected to the partnership's
petroleum products terminals or petroleum products pipeline system;
(7) the occurrence of an operational hazard or unforeseen
interruption for which the partnership is not adequately insured;
(8) the treatment of the partnership as a corporation for federal
or state income tax purposes or if the partnership becomes subject
to significant forms of other taxation; and (9) an increase in the
competition the partnership's operations encounter. 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. The partnership undertakes no
obligation to revise its forward-looking statements to reflect
events or circumstances occurring after today's date. Contact:
Investors: Media: Paula Farrell Bruce Heine (918) 574-7650 (918)
574-7010 http://www.newscom.com/cgi-bin/prnh/20031107/DAMAGELOGO
http://photoarchive.ap.org/ DATASOURCE: Magellan Midstream
Partners, L.P. CONTACT: Investors, Paula Farrell, +1-918-574-7650,
, or Media, Bruce Heine, +1-918-574-7010, , both of Magellan
Midstream Partners, L.P. Web site: http://www.magellanlp.com/
http://www.mgglp.com/
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