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


(END) Dow Jones Newswires

February 02, 2023 09:23 ET (14:23 GMT)

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