TULSA, Okla. – Magellan Midstream Holdings, L.P. (NYSE: MGG) today reported increased quarterly operating profit and net income. First-quarter 2006 operating profit was $59.0 million compared to $50.8 million for first quarter 2005, representing a 16.1% increase. Net income increased to $10.8 million during first quarter 2006 from $7.4 million in the corresponding 2005 period, a 45.9% increase.
MGG owns the general partner interest in 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 cash flow is derived solely from cash distributions received from MMP.
“The underlying assets that provide our earnings and cash flow continue to deliver outstanding results, providing a strong foundation with growth potential for unitholders of Magellan Midstream Holdings,” said Don Wellendorf, chief executive officer.
Operating profit increased between quarters primarily due to MMP’s higher pipeline and terminal volumes, revenues from MMP’s variable-rate storage agreement that benefited first quarter 2006 and contributions from the Wilmington, Delaware marine terminal that MMP acquired in Sept. 2005.
Minority interest expense, which represents limited partner interests in MMP that the partnership does not own, increased between periods due to higher net income generated by MMP and due to a larger percentage of MMP being owned by the public in the 2006 period.
An analyst call with management regarding first-quarter 2006 financial results and 2006 outlook for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. 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.
Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on May 4. To access the replay, dial (888) 203-1112 and provide code 4995889. 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 |
