Includes Issuance of Unsecured Public Debt and One Million Common Units  

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today a proposed refinancing plan that includes the issuance of $250 million of 10-year senior unsecured notes and one million common units in concurrent registered offerings. The net proceeds from these offerings will be principally used to repay $268 million of existing secured debt, which was scheduled to mature in 2007 and 2008. The partnership's remaining secured debt will be amended to release the collateral securing that debt, resulting in an unsecured capital structure for the partnership.

Magellan Midstream Holdings, L.P., the owner of the partnership's general partner, also plans to sell two million common units in a concurrent registered secondary offering. The sale of common units by Magellan Midstream Holdings will not increase the number of the partnership's outstanding units. The underwriters have the option to purchase up to 450,000 additional common units from Magellan Midstream Holdings to cover over-allotments.

J.P. Morgan Securities Inc. and Lehman Brothers Inc. will act as joint book-running managers of the senior notes offering. In addition, Citigroup Global Markets Inc., Scotia Capital Markets (USA) Inc. and SunTrust Capital Markets, Inc. have been named as co-managing underwriters.

A copy of the debt prospectus supplement and related base prospectus relating to the senior notes offering may be obtained from J.P. Morgan Securities Inc., Attn: Corporate Bond Syndicate, 270 Park Avenue, New York, NY 10017, Phone: 212-834-4533, Fax: 212-834-6081, or Lehman Brothers Inc., c/o ADP Financial Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, Phone: 631-254-7106, Fax: 631-254-7268, e-mail: niokioh_wright@adp.com.

Lehman Brothers Inc. and Goldman, Sachs & Co. will act as joint book-running managers of the common unit offering. In addition, Citigroup Global Markets Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC and Wachovia Capital Markets, LLC have been named as co-managing underwriters.

A copy of the common unit prospectus supplement and related base prospectuses relating to the common unit offering may be obtained from Lehman Brothers Inc., c/o ADP Financial Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, Phone: 631-254-7106, Fax: 631-254-7268, e-mail: niokioh_wright@adp.com, or Goldman, Sachs & Co., Attn: Prospectus Department, 85 Broad Street, New York, NY 10004, Phone: 212-902-1171.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offerings may be made only by means of the prospectuses and related prospectus supplements.

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.