TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today that it has closed on its
previously-announced acquisition of Rocky Mountain pipeline assets from Plains
All American Pipeline, L.P. (NYSE: PAA).
The pipeline system
includes approximately 550 miles of common carrier pipeline that distributes refined
petroleum products in Colorado, South Dakota and Wyoming. The system includes 4
terminals with nearly 1.7 million barrels of storage.
“This Rocky Mountain
pipeline system is a strategic fit with Magellan’s existing asset footprint, leveraging
our refined products expertise and existing customer relationships while extending
the reach of our pipeline system to allow us to serve new geographic markets,”
said Michael Mears, chief executive officer.
Magellan funded the $135
million purchase price primarily with proceeds from the partnership’s recent
Magellan Midstream Partners, L.P.
Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily
transports, stores and distributes refined petroleum products and crude oil. The
partnership owns the longest refined petroleum products pipeline system in the
country, with access to more than 40% of the nation’s refining capacity, and
can store over 80 million barrels of petroleum products such as gasoline,
diesel fuel and crude oil. More information is available at www.magellanlp.com.
Portions of this document constitute
forward-looking statements as defined by federal law. Although management of
Magellan Midstream Partners, L.P. believes any such statements are based on
reasonable assumptions, actual outcomes may be materially different. Among the
key risk factors associated with the acquisition that may have a direct impact
on the partnership’s results of operations and financial condition are: (1) price
fluctuations and overall demand for refined petroleum products in the United
States; (2) changes in the partnership’s tariff rates or other terms imposed by
state or federal regulatory agencies; (3) shut-downs or cutbacks at major
refineries or other businesses that use or supply the partnership’s services; (4)
the occurrence of an operational hazard or unforeseen interruption; (5)
disruption in the debt and equity markets that negatively impacts the
partnership’s ability to finance its capital spending and (6) failure of
customers to meet or continue contractual obligations to the partnership.
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, including the partnership’s Annual Report on Form 10-K for
the fiscal year ended Dec. 31, 2012 and
subsequent reports on Forms 8-K and 10-Q.
The partnership undertakes no obligation to revise its forward-looking
statements to reflect events or circumstances occurring after today's date.