TULSA, Okla. – Magellan
Midstream Partners, L.P. (NYSE: MMP) and Saddle Butte Pipeline II, LLC announced
today that they have entered into a letter of intent to jointly pursue the
proposed Saddlehorn Pipeline to transport various grades of crude oil from the
Niobrara shale to Magellan’s storage facilities in Cushing, Oklahoma. Saddle
Butte’s open season for a proposed competing pipeline project is cancelled immediately.
The current open season for the Saddlehorn Pipeline continues, with binding
commitments due from potential shippers by 5:00 p.m. Central Time on Nov. 6,
2014.
The proposed 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.
For customer inquiries about
the open season, please contact Chris Nalley at (918) 574-7710 or chris.nalley@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.
About Saddle Butte Pipeline II, LLC
Founded in 2008 with offices in Denver and Durango, Colorado,
Saddle Butte is a full-service midstream company offering competitive,
high-quality solutions from the wellhead to market. The Saddle Butte management
team has extensive experience across multiple resource plays in virtually every
facet of midstream and interstate pipeline initiatives, including land, engineering,
regulatory matters, construction and operations. More information is available
at www.sbpipeline.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. and Saddle Butte Pipeline II, LLC believe 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 decision to proceed with the opportunity described in this news release
are: (1) the ability to negotiate and sign definitive agreements with potential
customers; (2) the ability to obtain required rights-of-way, permits and other
governmental approvals on a timely basis; (3) the ability to justify the
economics of this potential opportunity once the necessary engineering and commercial
assessments are complete; (4) price fluctuations and overall demand for crude
oil; (5) changes in Saddlehorn Pipeline’s tariff rates or other terms imposed
by state or federal regulatory agencies; (6) the occurrence of an operational
hazard or unforeseen interruption; (7) disruption in the debt and equity
markets that negatively impacts the companies’ abilities to finance capital
spending and (8) failure of customers or vendors to meet or continue
contractual obligations. 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 companies undertake no obligation to revise these
forward-looking statements to reflect events or circumstances occurring after
today's date.
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