TULSA, Okla. – The board of directors for the general partner of Magellan Midstream Partners, L.P. (NYSE: MMP) has increased the partnership's quarterly cash distribution to 91.25 cents per unit for the period Oct. 1 through Dec. 31, 2004.
The new distribution, which equates to $3.65 per unit on an annualized basis, will be paid Feb. 14, 2005 to unitholders of record at the close of business on Feb. 8, 2005.
Including the latest distribution, the partnership will have paid distributions equal to $3.5225 per unit related to 2004 compared to $3.17 per unit related to 2003, an increase in excess of 11 percent.
“Magellan has performed exceptionally well during 2004, hitting on all cylinders in terms of operating performance, improvement of financing flexibility and acquisition growth,” said John Chandler, chief financial officer. “We are pleased to provide significant distribution growth once again to our unitholders, accomplishing our stated goal of 10 percent distribution growth for the year."
Associated with the announced distribution, approximately 1.4 million of the partnership's subordinated units will convert to common units on Feb. 9, the day following the record date. Magellan's partnership agreement provides for the conversion because quarterly distributions have equaled or exceeded the partnership's 52.5 cents per unit minimum quarterly distribution for four consecutive years. The conversion does not impact the amount of cash distributions paid or the total number of units outstanding. Following the conversion, the partnership will have 2.9 million subordinated units, all of which are currently held by the owner of the partnership's general partner.
The partnership plans to announce fourth-quarter earnings before the market opens on Wed., Feb. 2. An analyst conference call is scheduled at 1:30 p.m. Eastern the same day. To participate, dial (800) 289-0496 and provide code 574715. Investors also may listen to the call via the partnership's web site at http://www.magellanlp.com/webcasts.aspx.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. 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.
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Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the partnership 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.