TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today an extension of the open
season for commitments on the Saddlehorn Pipeline to transport various grades
of crude oil from the Niobrara play in northeast Colorado to Magellan’s storage
facilities in Cushing, Oklahoma. Binding commitments are now due by 5:00 p.m.
Central Time on Dec. 15, 2014.
The Saddlehorn Pipeline
includes construction of an approximate 600-mile, 20-inch diameter pipeline
capable of transporting up to 400,000 barrels per day of crude oil from
Platteville, Colorado to Magellan’s storage facilities in Cushing. Magellan is
also broadening the scope of the pipeline system to include up to three new
origin points for receipt of crude oil, subject to sufficient shipper support
for the new origins. Along with Platteville, additional origin points in
Colorado could be available in Weld County near Riverside, Briggsdale and
Pawnee.
Subject to receipt of any
necessary permits and regulatory approvals, the Saddlehorn Pipeline from
Platteville to Cushing is expected to be operational during the second quarter
of 2016.
As previously announced,
Magellan has received binding commitments from a wholly owned subsidiary of
Anadarko Petroleum Corporation and Noble Energy, Inc. In addition, Magellan has
entered into letters of intent with Anadarko and Saddle Butte Pipeline II, LLC
for potential equity ownership in Saddlehorn Pipeline.
The project scope, cost and
ownership structure of the Saddlehorn Pipeline will be finalized after the open
season closes and the total committed volumes are known.
For customer inquiries about
the open season, please contact Chris Nalley at (918) 574-7710 or chris.nalley@magellanlp.com. More
information about the open season is available at www.magellanlp.com/tariffs.aspx.
About Magellan Midstream Partners, L.P.
Magellan 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 nearly 50% of
the nation’s refining capacity, and can store more than 90 million barrels of
petroleum products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
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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, there is no assurance that actual outcomes will not be
materially different. Among the key risk factors associated with the project
that may have a direct impact on the partnership’s results of operations and
financial condition are: (1) the ability to obtain all required rights-of-way, permits
and other governmental approvals on a timely basis; (2) the ability to complete
construction of the project on time and at expected costs once the necessary
engineering and commercial assessments are complete; (3) price fluctuations and
overall demand for crude oil; (4) changes in Saddlehorn Pipeline’s tariff rates
or other terms imposed by state or federal regulatory agencies; (5) the
occurrence of an operational hazard or unforeseen interruption; (6) disruption
in the debt and equity markets that negatively impacts the partnership’s ability
to finance capital spending and (7) failure of customers or vendors to meet or
continue contractual obligations. Additional information about issues that
could lead to material changes in performance is contained in Magellan’s
filings with the Securities and Exchange Commission. The partnership undertakes
no obligation to revise these forward-looking statements to reflect events or
circumstances occurring after today's date.
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