Magellan Midstream to Add New Origin Point and Expand Pipeline Capacity of Longhorn Pipeline

 TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to construct a new origin at Barnhart, Texas to accept crude oil shipments on the partnership’s Longhorn pipeline. The new origin, which will be located approximately 75 miles east of the pipeline’s Crane, Texas origin, is expected to begin receiving crude oil in early 2015 and cost approximately $25 million. 

Further, Magellan plans to expand the capacity of the Longhorn pipeline by 50,000 barrels per day (bpd) to an increased capacity of 275,000 bpd, all fully committed by long-term customer agreements. Subject to regulatory approval, the operating capacity of the Longhorn pipeline is expected to reach 275,000 bpd by mid-2014, with the expansion estimated to cost approximately $55 million. 

“Customer demand continues to be strong to deliver Permian Basin crude oil to the Gulf Coast refining region,” said Michael Mears, chief executive officer. “The new Barnhart origin and increased capacity for the Longhorn pipeline are in direct response to our customers’ desire to more efficiently supply additional crude oil barrels to the Gulf Coast through our Longhorn pipeline system.” 

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. 


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, actual outcomes may be materially different. Among the key risk factors associated with these projects that may have a direct impact on the partnership’s results of operations and financial condition are: (1) the ability to obtain all required permits and regulatory approvals on time; (2) the ability to complete construction of the projects on time and at expected costs; (3) price fluctuations and overall demand for crude oil; (4) changes in the partnership’s tariff rates or other requirements that may be imposed by governmental or similar entities; (5) the occurrence of operational hazards or other unforeseen interruptions; (6) disruption in the debt and equity markets that negatively impacts the partnership’s ability to finance capital spending and (7) failure of customers to meet or continue contractual obligations to the company. Please see Magellan’s filings with the Securities and Exchange Commission for additional information about issues that could lead to material changes in performance. Magellan undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date. 


Paula Farrell, Investor Relations 918-574-7650 paula.farrell@magellanlp.com  
Bruce Heine, Media Relations 918-574-7010 bruce.heine@magellanlp.com  

Contact Information:

Paula Farrell Investor Relations 918-574-7650 paula.farrell@magellanlp.com