TULSA, Okla. – Magellan Midstream Holdings, L.P. (NYSE: MGG) today reported third-quarter 2006 operating profit of $40.2 million compared to $49.1 million for third quarter 2005. For the nine months ended Sept. 30, 2006, operating profit grew to $166.7 million from $148.3 million in the comparable 2005 period.
Net income was $0.9 million during third quarter 2006 versus a loss of $1.2 million in third quarter 2005. For the nine months ended Sept. 30, 2006, net income grew to $24.6 million from $10.7 million in the corresponding 2005 timeframe.
MGG owns the general partner interest and incentive distribution rights associated with 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 from cash distributions received from MMP.
“MGG's cash flows continue to grow from our investment in MMP, which has generated strong cash flows this year, allowing us to increase cash distributions again to our unitholders,” said Don Wellendorf, chief executive officer.
Operating profit decreased between quarters primarily due to MMP's lower product margin resulting from the sharp decline in petroleum prices during third-quarter 2006, partially offset by record petroleum products pipeline volumes, record inland terminals volumes and operating results from MMP's expansion projects completed over the past year.
Interest expense declined from third quarter 2005 to third quarter 2006 principally as a result of the partnership retiring its debt in Dec. 2005. Minority interest expense, which represents limited partner interests in MMP that the partnership does not own, also declined between the quarters due to lower net income generated by MMP in third quarter 2006.
An analyst call with management regarding third-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) 406-5356 and provide code 7901645. 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. 8. To access the replay, dial (888) 203-1112 and provide code 7901645. 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 |
