TULSA , Okla. – Magellan Midstream Holdings, L.P. (NYSE: MGG) today reported second-quarter 2008 operating profit of $102.1 million compared to $75.2 million for second quarter 2007. Net income was $30.9 million during second quarter 2008 versus $14.9 million in second quarter 2007.
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 second quarter 2008, MGG will receive distributions of $21.9 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders.
“MMP continues to generate solid financial results and grow its quarterly cash distribution, which in turn has allowed us to increase MGG’s distributions by 22% compared to second quarter 2007,” said Don Wellendorf, chief executive officer.
Operating profit increased between quarters due to higher commodity margins, higher revenues from each of MMP’s business segments and lower expenses, including a $12.1 million favorable impact from the settlement of a previously accrued environmental liability for MMP’s petroleum products pipeline system.
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 2008.
The 2007 period was negatively impacted by refinancing costs related to MMP’s early retirement of debt during second quarter 2007.
Basic and diluted net income per limited partner unit was 50 cents in second quarter 2008 and 26 cents in second quarter 2007. The favorable environmental settlement resulted in a 19 cent increase to 2008 net income per unit.
An analyst call with management regarding second-quarter 2008 financial results and outlook for the remainder of 2008 for the partnership and MMP is scheduled today at 1:30 p.m. Eastern. To participate, dial (800) 478-6251 and provide code 4897703 . 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 Aug. 11. To access the replay, dial (888) 203-1112 and provide code 4897703. 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 |
