Magellan Midstream Sees Higher Shipments in 2023 -- Energy Comment
February 02 2023 - 09:38AM
Dow Jones News
By Mary de Wet
Magellan Midstream Partners LP shipped more refined products and
crude oil last year and expects the trend to continue in 2023.
On its outlook:
"Guidance assumes that refined products demand remains steady,
with 2023 refined products shipments expected to be approximately
1% higher than the record annual volume moved in 2022," the Tulsa,
Okla., pipeline operator said.
Shipments of refined products rose 3.5% to 559.9 million barrels
last year.
"Crude oil transportation volume on our wholly owned pipelines
is expected to increase over 2022 results primarily related to the
full-year impact of higher shipments on our Houston distribution
system from a recent pipeline connection. Similar to 2022, we
expect some of the customers of our joint venture pipelines to
continue shipping below their commitment levels and making
deficiency payments in 2023."
Crude oil shipments on Magellan's 100% assets rose 21% to 229.8
million barrels in 2022.
"Commodity prices continue to be volatile in response to global
events, and our current [distributable cash flow] guidance assumes
an average crude oil price of $80 per barrel for 2023, consistent
with recent futures pricing.
"We currently estimate that each $10 change in the price of
crude oil will impact Magellan's 2023 financial results by
approximately $35 million, primarily related to our unhedged gas
liquids blending activities and the value of our pipeline tender
deductions and product overages."
On its fourth quarter:
The volume of refined products shipped rose to 144.5 million
barrels from 142 million barrels in the year-ago period.
"Customers took advantage of the extensive connectivity of our
pipeline system to overcome various supply disruptions in the
Midcontinent and Texas regions during the current period, resulting
in a higher proportion of long-haul shipments."
The volume of crude oil shipped via Magellan 100%-owned assets
rose to 65.2 million barrels from 44.3 million barrels a year
ago.
Write to Mary de Wet at mary.dewet@dowjones.com
(END) Dow Jones Newswires
February 02, 2023 09:23 ET (14:23 GMT)
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