Magellan Midstream Proceeding with Saddlehorn Pipeline, Open Season Extended through Nov. 20

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to proceed with the recently-announced 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 have been received from a wholly owned subsidiary of Anadarko Petroleum Corporation and Noble Energy, Inc. as part of the pipeline’s ongoing open season. Based on these commitments, Magellan is proceeding with the Saddlehorn Pipeline.  

The current open season for the Saddlehorn Pipeline has been extended and includes a new tariff rate structure, with binding commitments now due from potential shippers by 5:00 p.m. Central Time on Nov. 20, 2014. All potential customers will have an equal opportunity to obtain capacity in the open season.  

Further, Magellan has entered into letters of intent with Anadarko and Saddle Butte Pipeline II, LLC for potential equity ownership in Saddlehorn Pipeline. 

“Magellan is pleased to move forward with the Saddlehorn Pipeline, supported by binding commitments from two of the largest producers in the Niobrara play,” said Michael Mears, chief executive officer. “With Magellan’s existing right-of-way, significant Cushing storage position and independent service provider business model, we believe the Saddlehorn Pipeline is the most efficient, timely and attractive pipeline project to transport increasing Niobrara crude oil production to the strategic Cushing hub.” 

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 receipt of any necessary permits and regulatory approvals, the Saddlehorn Pipeline is expected to be operational during the second quarter of 2016. 

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. 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. 


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) 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 partnership undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date. 


Contact Information:

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

Contact Information:

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