TULSA, Okla. – Magellan Midstream Holdings, L.P. (NYSE: MGG) today reported second-quarter 2007 operating profit of $75.2 million compared to $67.5 million for second quarter 2006. Net income was $14.9 million during second quarter 2007 versus $12.9 million in second quarter 2006.
MGG owns the general partner interest and incentive distribution rights of Magellan Midstream Partners, L.P. (NYSE: MMP) and reports its financial results on a consolidated basis with the financial results of MMP. The partnership currently has no separate operating activities apart from those conducted by MMP, and its distributable cash flow is derived from cash distributions received from MMP.
Related to second quarter 2007, MGG will receive distributions of $18.0 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders.
“MMP’s assets produced record quarterly financial results and higher cash distributions during second quarter 2007, allowing us to provide an attractive 6% increase in the MGG cash distribution again this quarter, for 12% distribution growth so far this year,” said Don Wellendorf, chief executive officer.
Operating profit increased between quarters primarily due to MMP’s increased transportation revenues, contributions from expansion projects and higher product margin in the 2007 period.
Non-controlling owners’ interest in income of consolidated subsidiaries, which represents limited partner interests in MMP that the partnership does not own, increased between quarters due to higher net income generated by MMP in second quarter 2007.
Second quarter 2007 was negatively impacted by debt refinancing costs related to MMP’s early retirement of debt, originally due in Oct. 2007.
Basic and diluted net income per limited partner unit was 26 cents in second quarter 2007 and 21 cents in second quarter 2006.
An analyst call with management regarding second-quarter 2007 financial results and 2007 outlook for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. To participate, dial (800) 289-0544 and provide code 4958985. Investors also may listen to the call via the partnership’s web site at http://www.mgglp.com/investors/calendar.asp.
Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on Aug. 6. To access the replay, dial (888) 203-1112 and provide code 4958985. The replay also will be available at http://www.mgglp.com.
About Magellan Midstream Holdings, L.P.
Magellan Midstream Holdings, L.P. is a publicly traded partnership formed to own the general partner interest and 100% of the incentive distribution rights in Magellan Midstream Partners, L.P. (NYSE: MMP), which primarily transports, stores and distributes refined petroleum products. More information is available at http://www.mgglp.com.
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Portions of this document may constitute forward-looking statements as defined by federal law. Although management 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 | Magellan Midstream Holdings, L.P. Investor Relations | 918-574-7650 | paula.farrell@magellanlp.com |
