TULSA, Okla. – The
board of directors of Magellan Midstream Partners, L.P. (NYSE: MMP) has increased
the partnership’s quarterly cash distribution to 53.25 cents per unit for the
period April 1 through June 30, 2013, representing the 45th distribution
increase since its initial public offering in 2001.
The second-quarter 2013
distribution is 13% higher than the second-quarter 2012 distribution of 47.125
cents per unit and represents a 5% increase over the first-quarter 2013
distribution of 50.75 cents.
The new distribution,
which equates to $2.13 per unit on an annualized basis, will be paid Aug. 14 to
unitholders of record at the close of business on Aug. 7.
“Magellan’s operations
continue to generate strong results and our growth projects remain on track,”
said Michael Mears, chief executive officer. “As a result, we are pleased to raise
our annual distribution growth targets to 16% for 2013 and 15% for 2014, reflecting
our confidence in Magellan’s future.”
Previously, Magellan’s
distribution guidance had been at least 10% annual growth for 2013 and 2014.
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 refined
petroleum products and crude oil. 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 over 80 million barrels of
petroleum products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
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 or other terms
imposed by state or federal regulatory agencies; (4) shut-downs or cutbacks at
major refineries or other businesses that use or supply the partnership’s
services; (5) changes in the throughput or interruption in service on pipelines
owned and operated by third parties and connected to the partnership’s
terminals or pipelines; (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, 2012 and subsequent reports on
Forms 10-Q and 8-K. The partnership undertakes no obligation to revise its
forward-looking statements to reflect events or circumstances occurring after
today's date.