Magellan Midstream Partners Increases Distribution for Twenty-First Consecutive Quarter

  Announces Plans to Expand Denver Pipeline Capabilities  

TULSA, Okla. – The board of directors for the general partner of Magellan Midstream Partners, L.P. (NYSE: MMP) has increased the partnership's quarterly cash distribution to 57.75 cents per unit for the period April 1 through June 30, 2006.

The second-quarter distribution represents a 16.1% increase over the second-quarter 2005 distribution of 49.75 cents per unit and a 2.2% increase over the first-quarter 2006 distribution of 56.5 cents.

The new distribution, which equates to $2.31 per unit on an annualized basis, will be paid Aug. 14, 2006 to unitholders of record at the close of business on Aug. 4, 2006.

The partnership plans to announce second-quarter earnings before the market opens on Thurs., July 27. An analyst conference call is scheduled at 1:30 p.m. Eastern the same day. To participate, dial (800) 406-5356 and provide code 3744325. Investors also may listen to the call via the partnership's web site at http://www.magellanlp.com/webcasts.aspx.


Expansion of Denver Pipeline Capabilities  

The partnership also announced that it is in the process of expanding its refined petroleum products pipeline capabilities into the Denver, Colorado market.

Enhancements include:

  • increasing the capacity of the partnership's pipeline segment from El Dorado, Kansas to Aurora, Colorado by 10,000 barrels per day to approximately 60,000 barrels per day;
  • constructing 375,000 barrels of storage tanks at its Aurora terminal;
  • upgrading the truck rack at its Aurora terminal to improve truck loading times and to provide additional services; and
  • adding biodiesel blending capabilities at its Aurora terminal.

The partnership plans to spend approximately $12 million to complete these projects, which are supported by long-term customer commitments. The truck rack enhancements should be completed by the end of 2006, with biodiesel blending available by March 2007. The pipeline expansion and storage tanks are expected to be fully functional by June 30, 2007.

“Organic growth opportunities like this expansion of our capabilities in the growing Denver market provide good returns to the partnership and allow us to extend our track record of distribution increases for our unitholders,” said Don Wellendorf, chief executive officer.


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 http://www.magellanlp.com.




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.  

Contact Information:

Paula Farrell Investor Relations 918-574-7650 paula.farrell@magellanlp.com