TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) announced today an extension of the open
season for commitments on the Saddlehorn Pipeline to transport various grades
of crude oil from the Niobrara play in northeast Colorado to Magellan’s storage
facilities in Cushing, Oklahoma. Binding commitments are now due by 5:00 p.m.
Central Time on Feb. 27, 2015.
The Saddlehorn Pipeline
includes construction of an approximate 600-mile, 20-inch diameter pipeline
capable of transporting up to 400,000 barrels per day of crude oil from
Platteville, Colorado to Magellan’s storage facilities in Cushing. Subject to
sufficient support, Magellan could also add more origin points.
Magellan is currently in the
process of obtaining permits and right-of-way and has secured an 80-acre tract of
land to serve as the Platteville origin. Subject to receipt of necessary
permits and regulatory approvals, the Saddlehorn Pipeline from Platteville to
Cushing is expected to be operational during the second quarter of 2016.
As previously announced,
Magellan has received binding commitments from a wholly owned subsidiary of
Anadarko Petroleum Corporation and Noble Energy, Inc. In addition, Magellan has
entered into letters of intent with potential equity owners in Saddlehorn
Pipeline and is in advanced discussions with an additional strategic party for possible
equity ownership in the project. Magellan expects to serve as construction
manager and operator of Saddlehorn Pipeline.
The project scope, cost and
ownership structure of the Saddlehorn Pipeline will be finalized after the open
season closes and the total committed volumes are known.
For customer inquiries about
the open season, please contact Chris Nalley at (918) 574-7710 or chris.nalley@magellanlp.com or
Christina Payne at (918) 574-7881 or christina.payne@magellanlp.com. More
information about the open season is available at www.magellanlp.com/tariffs.aspx.
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 nearly 50% of
the nation’s refining capacity, and can store more than 90 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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Portions of this document constitute forward-looking statements as
defined by federal law. Although management of Magellan Midstream Partners,
L.P. 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 associated with the project that may have a direct impact on
the partnership’s results of operations and financial condition are: (1) the
ability to obtain all required rights-of-way, permits and other governmental
approvals on a timely basis; (2) the ability to complete construction of the
project on time and at expected costs once the necessary engineering and
commercial assessments are complete; (3) price fluctuations and overall demand
for crude oil; (4) changes in Saddlehorn Pipeline’s tariff rates or other terms
imposed by state or federal regulatory agencies; (5) the occurrence of an operational
hazard or unforeseen interruption; (6) disruption in the debt and equity
markets that negatively impacts the partnership’s ability to finance capital
spending and (7) willingness to incur or failure of customers or vendors to
meet or continue contractual obligations related to the project. Additional
information about issues that could lead to material changes in performance is
contained in Magellan’s filings with the Securities and Exchange Commission.
The partnership undertakes no obligation to revise these forward-looking
statements to reflect events or circumstances occurring after today's date.
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