Magellan Midstream Confirms Business Fundamentals and Announces Intention to Raise Quarterly Cash Distributions
October 09 2008 - 2:25PM
PR Newswire (US)
Plans to Announce Earnings on Nov. 3 TULSA, Okla., Oct. 9
/PRNewswire-FirstCall/ -- In response to recent trading activity in
both Magellan Midstream Partners, L.P. (NYSE:MMP) and Magellan
Midstream Holdings, L.P. (NYSE:MGG), management confirms that
business fundamentals for its operations remain solid despite the
recent negative pressure on both entities' unit prices. "Our
primary business of transporting, storing and distributing refined
petroleum products continues to produce solid results and the
financial health of our partnership remains strong," said Don
Wellendorf, chief executive officer. "MMP is in the very favorable
position of having an extremely strong balance sheet that allows us
to fund our current slate of expansion projects with cash flow from
operations and debt rather than equity, while still leaving plenty
of borrowing capacity available under our $550 million revolving
credit facility," added Mr. Wellendorf. "As a result, we have the
flexibility to utilize MMP's balance sheet for additional strategic
opportunities to increase unitholder value that may result from the
current market conditions." Quarterly Distribution Increases The
boards of directors for both companies intend to declare cash
distribution increases later this month, with MMP's new quarterly
distribution expected to be 70.25 cents per MMP unit, or $2.81 on
an annual basis, which is a 9% increase over MMP's third-quarter
2007 distribution. MGG's new quarterly distribution is expected to
be 35.4 cents per MGG unit, or $1.416 on an annual basis, which is
a 22% increase over MGG's third-quarter 2007 distribution. The
partnerships intend to pay these higher distribution amounts on
Nov. 14 to unitholders of record on Nov. 7. Earnings Call Details
The partnerships plan to announce financial results for third
quarter 2008 before the market opens on Mon., Nov. 3. Management
will discuss third-quarter earnings and outlook for the remainder
of 2008 during a conference call with analysts at 1:30 p.m. Eastern
the same day. To participate in the conference call, dial (888)
778-9058 and provide code 2504671. Investors also may listen to the
call via MMP's website at http://www.magellanlp.com/webcasts.asp
and MGG's website at http://www.mgglp.com/webcasts.asp. Audio
replays of the conference call will be available from 4:30 p.m.
Eastern on Nov. 3 through midnight on Nov. 9. To access the replay,
dial (888) 203-1112 and provide code 2504671. The replay also will
be available at http://www.magellanlp.com/ and
http://www.mgglp.com/. 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 partnerships' results of operations and
financial condition are: (1) MMP's 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 MMP'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 MMP's services; (6) changes in the throughput or
interruption in service on petroleum products pipelines owned and
operated by third parties and connected to MMP's petroleum products
terminals or petroleum products pipeline system; (7) the occurrence
of an operational hazard or unforeseen interruption for which the
partnerships are not adequately insured; (8) the treatment of the
partnerships as a corporation for federal or state income tax
purposes or if the partnerships become subject to significant forms
of other taxation; and (9) an increase in the competition MMP's
operations encounter. Additional information about issues that
could lead to material changes in performance is contained in
filings with the Securities and Exchange Commission for both
partnerships. The partnerships undertake no obligation to revise
forward-looking statements to reflect events or circumstances
occurring after today's date. CONTACT: Paula Farrell (918)574-7650
http://www.newscom.com/cgi-bin/prnh/20031107/DAMAGELOGO
http://www.newscom.com/cgi-bin/prnh/20060201/DAW022LOGODATASOURCE:
Magellan Midstream Partners, L.P.; Magellan Midstream Holdings,
L.P. CONTACT: Paula Farrell of Magellan Midstream Partners, L.P.,
+1-918-574-7650, Web Site: http://www.magellanlp.com/
http://www.magellanlp.com/webcasts.asp http://www.mgglp.com/
http://www.mgglp.com/webcasts.asp
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