TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) today confirmed that its refined petroleum products terminal and pipeline assets remain fully operational, despite flooding in certain Midwest areas.
Based on operating results so far this year, management is increasing its second-quarter 2008 net income per unit guidance to 76 cents from 66 cents and its annual guidance to $3.13 from $3.03, which would be record annual financial results for the partnership.
While pipeline volumes are expected to be lower than previously forecasted, management currently expects them to be in-line with 2007 volumes for both second quarter and full-year 2008. Higher shipments of liquefied petroleum gases (LPGs) are expected to offset lower refined products volumes, which are projected to decline about 3% during second quarter and 1% for the year compared to the related 2007 period primarily due to high fuel prices, the potential impact of recent wet conditions in the Midwest that could reduce farming diesel demand and higher ethanol blending. However, increases in transportation tariffs and higher profits from commodity-related activities are expected to benefit the quarter and year.
“While recent high petroleum prices are currently having a negative impact on our pipeline volumes, the favorable impact of high prices on our commodity-driven activities is more than offsetting the impact on volumes, allowing us to increase our earnings guidance for the year,” said Don Wellendorf, president and chief executive officer. “We remain committed to our stated goal of increasing distributions by 8% to 10% per year through 2010.”
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) 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.
About Magellan Midstream Holdings, L.P.
Magellan Midstream Holdings, L.P. (NYSE: MGG) is a publicly traded partnership formed to own the general partner interest and 100% of the incentive distribution rights in MMP. More information is available at http://www.mgglp.com.
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Portions of this document constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Among the key risk factors that may have a direct impact on the partnership’s results of operations and financial condition are: (1) its ability to identify growth projects or to complete identified projects on time and at projected costs; (2) price fluctuations for natural gas liquids and refined petroleum products; (3) overall demand for natural gas liquids, refined petroleum products, natural gas, oil and ammonia in the United States; (4) changes in the partnership’s tariff rates implemented by the Federal Energy Regulatory Commission, the United States Surface Transportation Board and state regulatory agencies; (5) shut-downs or cutbacks at major refineries, petrochemical plants, ammonia production facilities or other businesses that use or supply the partnership’s services; (6) changes in the throughput or interruption in service on petroleum products pipelines owned and operated by third parties and connected to the partnership’s petroleum products terminals or petroleum products pipeline system; (7) the occurrence of an operational hazard or unforeseen interruption for which the partnership is not adequately insured; (8) the treatment of the partnership as a corporation for federal or state income tax purposes or if the partnership becomes subject to significant forms of other taxation; and (9) an increase in the competition the partnership’s operations encounter. 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. The partnership undertakes no obligation to revise its forward-looking statements to reflect events or circumstances occurring after today's date.
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