TULSA, Okla. – The
board of directors of Magellan Midstream Partners, L.P. (NYSE: MMP) has significantly
increased the partnership’s quarterly cash distribution to 94.25 cents per unit
for the period April 1 through June 30, 2012, representing the 41st distribution
increase since its initial public offering in 2001.
The second-quarter 2012
distribution is 20% higher than the second-quarter 2011 distribution of 78.5
cents per unit and represents a 12% increase over the first-quarter 2012
distribution of 84 cents.
“Magellan is pleased to
provide a larger-than-expected distribution payout to investors this quarter,”
said Michael Mears, chief executive officer. “Our base business and growth
projects continue to generate considerably more cash flow than necessary to
comfortably increase our annual distribution by more than the 9% growth initially
targeted for 2012. Looking ahead, we are now targeting distributions for
full-year 2012 that are 18% higher than 2011, with the goal of raising
distributions an additional 10% for 2013 as our future results are expected to
benefit from additional growth projects coming online.”
The new distribution,
which equates to $3.77 per unit on an annualized basis, will be paid Aug. 14 to
unitholders of record at the close of business on Aug. 7.
This
announcement is intended to be a qualified notice to nominees under Treasury
Regulation Section 1.1446-4(b), with 100% of the partnership’s distributions to
foreign investors attributable to income that is effectively connected with a
United States trade or business. Accordingly, the partnership’s distributions
to foreign investors are subject to federal income tax withholding at the
highest effective tax rate.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly
traded partnership that primarily transports, stores and distributes petroleum
products. The partnership owns the longest refined petroleum products pipeline
system in the country, with access to more than 40% of the nation’s refining
capacity, and can store 80 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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Forward-Looking
Statement Disclaimer
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 partnership’s results of operations and financial condition
are: (1) its ability to identify growth projects or to complete identified
projects on time and at expected costs; (2) price fluctuations and changes in demand
for refined petroleum products, crude oil and natural gas liquids, or changes
in demand for transportation or storage of those commodities through its
existing or planned facilities; (3) changes in the partnership’s tariff rates
imposed by the Federal Energy Regulatory Commission, the United States Surface
Transportation Board or state regulatory agencies; (4) shut-downs or cutbacks
at major refineries, petrochemical plants, ammonia production facilities or
other businesses that use or supply the partnership’s services; (5) changes in
the throughput or interruption in service on petroleum pipelines owned and
operated by third parties and connected to the partnership’s petroleum
terminals or petroleum pipeline system; (6) the occurrence of an operational
hazard or unforeseen interruption for which the partnership is not adequately
insured; (7) the treatment of the partnership as a corporation for federal or
state income tax purposes or if the partnership becomes subject to significant
forms of other taxation; (8) an increase in the competition the partnership’s
operations encounter; (9) disruption in the debt and equity markets that
negatively impacts the partnership’s ability to finance its capital spending; and
(10) failure of customers to meet or continue contractual obligations to the
partnership. 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, including the partnership’s Annual Report
on Form 10-K for the fiscal year ended Dec. 31, 2011 and subsequent reports on Forms
8-K. The partnership undertakes no obligation to revise its forward-looking
statements to reflect events or circumstances occurring after today's date.