TULSA, Okla. – Magellan Midstream Holdings, L.P. (NYSE: MGG) today reported third-quarter 2007 operating profit of $67.5 million compared to $40.2 million for third quarter 2006. Net income was $14.1 million during third quarter 2007 versus $0.9 million in third 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 third quarter 2007, MGG will receive distributions of $18.9 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders.
“MMP’s solid quarterly financial results and higher cash distributions allowed us to again increase substantially the cash distribution to MGG unitholders. Distributions to MGG unitholders have increased 18% so far this year,” said Don Wellendorf, chief executive officer.
Operating profit increased between quarters primarily due to MMP’s higher pipeline rates, favorable commodity margins, lower pipeline operating expenses and additional profits from expansion projects.
Non-controlling owners’ interest in income of consolidated subsidiaries, which represents limited partner interests in MMP that MGG does not own, increased between quarters due to higher net income generated by MMP in third quarter 2007.
Basic and diluted net income per limited partner unit was 26 cents in third quarter 2007 and 1 cent in third quarter 2006.
An analyst call with management regarding third-quarter 2007 financial results and fourth-quarter outlook for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. To participate, dial (800) 289-0741 and provide code 1431090. 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 Nov. 13. To access the replay, dial (888) 203-1112 and provide code 1431090. The replay also will be available at http://www.mgglp.com.
About Magellan Midstream Holdings, L.P.
Magellan Midstream Holdings, L.P. (NYSE: MGG) 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 filings with the Securities and Exchange Commission for both partnerships.
Contact Information:
| Paula Farrell | Magellan Midstream Holdings, L.P. Investor Relations | 918-574-7650 | paula.farrell@magellanlp.com |
