TULSA, Okla. – Magellan Midstream Holdings, L.P. (NYSE: MGG) today reported fourth-quarter 2007 operating profit of $80.9 million compared to $66.3 million for fourth quarter 2006. Net income was $14.9 million during fourth quarter 2007 versus $9.9 million in fourth 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 fourth quarter 2007, MGG will receive distributions of $19.9 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders.
“MMP’s record quarterly and annual financial results enabled us to grow MGG’s distribution by 25% in 2007,” said Don Wellendorf, chief executive officer. “Further, MMP’s continued focus on future growth and stated intention for 2008 distribution increases should produce a healthy distribution increase to MGG unitholders in 2008 as well.”
Operating profit increased between quarters primarily due to MMP’s higher petroleum products pipeline rates and shipments, favorable commodity margins 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 fourth quarter 2007.
Basic and diluted net income per limited partner unit was 28 cents in fourth quarter 2007 and 22 cents in fourth quarter 2006.
An analyst call with management regarding fourth-quarter 2007 financial results and 2008 outlook for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. To participate, dial (888) 801-6506 and provide code 1583456. Investors also may listen to the call via the partnership’s web site at http://www.mgglp.com/webcasts.asp.
Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on Feb. 11. To access the replay, dial (888) 203-1112 and provide code 1583456. 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.
###
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 |
