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 71 cents per unit for the period Oct. 1 through Dec. 31, 2008, representing its thirty-first consecutive quarterly distribution increase.
The fourth-quarter distribution is 8% higher than the fourth-quarter 2007 distribution of 65.75 cents per unit and represents a 1% increase over the third-quarter 2008 distribution of 70.25 cents. For the year, Magellan declared distributions of $2.7725 per unit for 2008, or 9% higher than distributions of $2.5475 related to 2007.
The new distribution, which equates to $2.84 per unit on an annualized basis, will be paid Feb. 13, 2009 to unitholders of record at the close of business on Feb. 6.
This announcement is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b), with 100% of the partnership’s distributions to foreign investors attributable to income that is effectively connected with a United States trade or business. Accordingly, Magellan’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
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. MMP’s general partner interest and related incentive distribution rights are owned by Magellan Midstream Holdings, L.P. (NYSE: MGG).
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Portions of this document may 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. 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.