Magellan Midstream Partners Increases Distribution for Sixteenth Consecutive Quarter

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 48 cents per unit for the period Jan. 1 through March 31, 2005. Prior to the latest increase, the distribution had been 45.625 cents per unit following the partnership's two-for-one split on April 12, 2005.

The first-quarter distribution represents a 13 percent increase over the first-quarter 2004 distribution of 42.5 cents per unit and an 83 percent increase since the partnership's initial public offering during early 2001. Historical distributions are restated to account for the impact of the two-for-one split.

The new distribution, which equates to $1.92 per unit on an annualized basis, will be paid May 13, 2005 to unitholders of record at the close of business on May 5, 2005.

“Magellan's businesses continue to generate significant excess cash flow,” said John Chandler, chief financial officer. “As a result, we are increasing our distribution this quarter at a rate higher than necessary to meet our annual distribution growth target of 10 percent. Following this increase, the partnership's distribution coverage ratio will remain very strong and our annual goal will continue to be at least 10 percent growth in distributions from this higher level going forward.”

The partnership plans to announce first-quarter earnings before the market opens on Wed., April 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 1566420. Investors also may listen to the call via the partnership's web site at http://www.magellanlp.com/webcasts.aspx.

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 the partnership 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