TULSA, Okla. – The board of directors for the general partner of Magellan Midstream Holdings, L.P. (NYSE: MGG) declared its initial quarterly cash distribution of 20.8 cents per unit for the period Jan. 1 through March 31, 2006, or 83.2 cents on an annual basis.
The announced quarterly distribution represents a 6.7% increase from the expected quarterly distribution rate of 19.5 cents, or 78 cents on an annual basis, stated in the partnership's initial public offering prospectus dated Feb. 9, 2006.
The cash distribution will be paid on May 15, 2006 to unitholders of record at the close of business on May 8, 2006. As described in the prospectus, the initial quarterly distribution will be prorated for the portion of the quarter beginning on the Feb. 15 closing date of the partnership's initial public offering. The amount of the prorated distribution for this 45-day period is 10.4 cents per unit.
“This 6.7% distribution increase versus the expected initial quarterly distribution included in our IPO prospectus is directly related to the 2.3% distribution increase by Magellan Midstream Partners, L.P. for first-quarter 2006 versus fourth-quarter 2005,” said John Chandler, chief financial officer. “The MGG distribution increase reflects the significant growth achievable through ownership of the general partner interest. The performance of the underlying assets continues to be strong.”
The partnership plans to announce first-quarter earnings before the market opens on Fri., April 28. An analyst conference call is scheduled at 1:30 p.m. Eastern the same day. To participate, dial (800) 810-0924 and provide code 4995889. Investors also may listen to the call via the partnership's web site at http://www.mgglp.com/investors/calendar.asp.
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 |
