Plans to Announce Earnings on Nov. 3
TULSA , Okla. – In response to recent trading activity in both Magellan Midstream Partners, L.P. (NYSE: MMP) and Magellan Midstream Holdings, L.P. (NYSE: MGG), management confirms that business fundamentals for its operations remain solid despite the recent negative pressure on both entities’ unit prices.
“Our primary business of transporting, storing and distributing refined petroleum products continues to produce solid results and the financial health of our partnership remains strong,” said Don Wellendorf, chief executive officer.
“MMP is in the very favorable position of having an extremely strong balance sheet that allows us to fund our current slate of expansion projects with cash flow from operations and debt rather than equity, while still leaving plenty of borrowing capacity available under our $550 million revolving credit facility,” added Mr. Wellendorf. “As a result, we have the flexibility to utilize MMP’s balance sheet for additional strategic opportunities to increase unitholder value that may result from the current market conditions. ”
Quarterly Distribution Increases
The boards of directors for both companies intend to declare cash distribution increases later this month, with MMP’s new quarterly distribution expected to be 70.25 cents per MMP unit, or $2.81 on an annual basis, which is a 9% increase over MMP’s third-quarter 2007 distribution. MGG’s new quarterly distribution is expected to be 35.4 cents per MGG unit, or $1.416 on an annual basis, which is a 22% increase over MGG’s third-quarter 2007 distribution. The partnerships intend to pay these higher distribution amounts on Nov. 14 to unitholders of record on Nov. 7.
Earnings Call Details
The partnerships plan to announce financial results for third quarter 2008 before the market opens on Mon., Nov. 3. Management will discuss third-quarter earnings and outlook for the remainder of 2008 during a conference call with analysts at 1:30 p.m. Eastern the same day.
To participate in the conference call, dial ( 888) 778-9058 and provide code 2504671. Investors also may listen to the call via MMP’s web site at http://www.magellanlp.com/webcasts.aspx and MGG’s website at http://www.mgglp.com/webcasts.asp.
Audio replays of the conference call will be available from 4:30 p.m. Eastern on Nov. 3 through midnight on Nov. 9. To access the replay, dial (888) 203-1112 and provide code 2504671. The replay also will be available at http://www.magellanlp.com and http://www.mgglp.com.
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 partnerships’ results of operations and financial condition are: (1) MMP’s 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 MMP’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 MMP’s services; (6) changes in the throughput or interruption in service on petroleum products pipelines owned and operated by third parties and connected to MMP’s petroleum products terminals or petroleum products pipeline system; (7) the occurrence of an operational hazard or unforeseen interruption for which the partnerships are not adequately insured; (8) the treatment of the partnerships as a corporation for federal or state income tax purposes or if the partnerships become subject to significant forms of other taxation; and (9) an increase in the competition MMP’s operations encounter. Additional information about issues that could lead to material changes in performance is contained in filings with the Securities and Exchange Commission for both partnerships. The partnerships undertake no obligation to revise forward-looking statements to reflect events or circumstances occurring after today's date.