TULSA , Okla. – The board of directors for the general partner of Magellan Midstream Partners, L.P. (NYSE:MMP) has declared a quarterly cash distribution of 83 cents per unit for the period Oct. 1 through Dec. 31, 2003 .
The fourth-quarter distribution represents a 14.5 percent increase over the fourth-quarter 2002 distribution of 72.5 cents per unit and a 58.1 percent increase since the partnership's initial public offering during early 2001.
The latest distribution, which equates to $3.32 per unit on an annualized basis, will be paid Feb. 13, 2004 to unitholders of record at the close of business on Feb. 6, 2004 .
“We are pleased to announce the partnership's eleventh consecutive distribution increase,” said John Chandler, chief financial officer. “ Our assets have performed very well this year, allowing us to substantially exceed our stated goal of increasing cash distributions by at least 10 percent annually."
Associated with the announced distribution, 25 percent of the partnership's subordinated units, or approximately 1.4 million units, will convert to common units on the Feb. 6 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 three consecutive years. The conversion does not impact the amount of cash distributions paid or the total number of units outstanding. All subordinated units 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 Thursday, Jan. 29. An analyst conference call is scheduled at 1:30 p.m. Eastern the same day. To participate, dial (800) 289-0485 and provide code 233671. International callers should dial (913) 981-5518 and provide the same code. 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 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.