TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it has priced a $300 million public offering of 4.25% senior notes due Feb. 1, 2021 at a price of approximately 99.6% of par. The partnership intends to use the net proceeds from this offering, after underwriting discounts and estimated offering expenses, of approximately $296 million to pay a portion of the purchase price for the partnership’s previously announced, pending acquisition of petroleum storage and pipeline assets. Prior to the acquisition closing, the partnership intends to use the net proceeds for general partnership purposes, including investment in interest bearing securities or accounts.

J.P. Morgan Securities Inc., Banc of America Securities LLC, Morgan Stanley & Co. Incorporated and Wells Fargo Securities, LLC are joint book-running managers for the debt offering, with Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Mitsubishi UFJ Securities (USA), Inc. acting as co-managing underwriters. The offering is expected to close on Aug. 11, 2010.

When available, a copy of the final prospectus supplement and related base prospectus associated with the senior notes offering may be obtained on the SEC website at www.sec.gov or from any of the underwriters, including:

• J.P. Morgan Securities Inc., 383 Madison Avenue, Attention: High Grade Syndicate Desk, New York, NY 10179, phone: 212-834-4533;
• Banc of America Securities LLC, Attention: Prospectus Department, 100 West 33rd Street, 3rd floor, New York, NY 10001, phone: 800-294-1322;
• Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd floor, New York, NY 10014, e-mail: prospectus@morganstanley.com, phone: 866-718-1649; or
• Wells Fargo Securities, LLC, Attention: Syndicate Operations, 1525 West W.T. Harris Boulevard, Charlotte, NC 28262, e-mail: prospectus.specialrequests@wachovia.com, phone: 800-326-5897.

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 offering may be made only by means of a prospectus and related prospectus supplement.

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.

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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.