TULSA , Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) has acquired ownership in 14 refined petroleum products terminals located in the southeastern United States for $24.8 million. The partnership previously owned a 79 percent interest in 8 of these terminals and purchased the remaining interest from Murphy Oil USA, Inc. In addition, the acquisition includes sole ownership of 6 terminals that had been jointly owned by Murphy Oil USA, Inc. and Colonial Pipeline Company.
The partnership also expects to incur transaction fees and environmental remediation costs over the next several years at these locations totaling approximately $4.8 million.
“The increased terminal ownership complements our existing terminal network and will provide additional opportunities to better serve our customers,” noted Don Wellendorf, chief executive officer. “Further, we are pleased to have long-term agreements in place for business at these locations, which we view as a clear vote of confidence in Magellan's operating and customer service capabilities.”
The acquisition was funded with cash on hand, and the terminals are expected to increase 2004 earnings by approximately 3 cents per limited partner unit. Beginning in 2005, the terminals are expected to generate annual earnings of at least 5 cents per unit with yearly maintenance capital of $0.2 million.
The terminals receive refined petroleum products from Colonial and Plantation pipelines, which are third-party pipelines. The 8 locations that were previously majority owned include Albany , Georgia ; Charlotte , Greensboro and Selma , North Carolina ; North Augusta , South Carolina ; Nashville , Tennessee ; and Montvale and Richmond , Virginia . The 6 terminals in which the partnership previously did not have an ownership interest are located in Birmingham , Alabama ; Doraville and Macon, Georgia; Spartanburg , South Carolina ; and Chattanooga and Knoxville , Tennessee .
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 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. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. 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.