Magellan Midstream Extends Open Season to Saddlehorn Pipeline
Dec 15 14
Magellan Midstream Partners, L.P. announced an extension of the open season for commitments on the Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara play in northeast Colorado to Magellan's storage facilities in Cushing, Oklahoma. The Saddlehorn Pipeline includes construction of an approximate 600-mile, 20-inch diameter pipeline capable of transporting up to 400,000 barrels per day of crude oil from Platteville, Colorado to Magellan's storage facilities in Cushing. Subject to sufficient support for additional origins, Magellan may also add three new origin points for receipt of crude oil in Weld County near Riverside, Briggsdale and Pawnee. Magellan is currently in the process of obtaining permits and right-of-way. Subject to receipt of necessary permits and regulatory approvals, the Saddlehorn Pipeline from Platteville to Cushing is expected to be operational during the second quarter of 2016.
Magellan Midstream Partners LP Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Year 2014
Oct 31 14
Magellan Midstream Partners LP reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company's total revenue was $521,601,000 compared to $443,835,000 a year ago. Operating profit was $225,837,000 compared to $154,624,000 a year ago. Income before provision for income taxes was $199,857,000 compared to $126,227,000 a year ago. Net income was $198,620,000 or $0.87 per diluted share compared to $125,623,000 or $0.55 per diluted share a year ago. Adjusted EBITDA was $231,438,000 compared to $192,051,000 a year ago. Diluted net income per unit excluding mark-to-market (MTM) commodity-related pricing adjustments, a non-generally accepted accounting principles (non-GAAP) financial measure, was 71 cents for third quarter 2014, exceeding the 62 cent guidance provided by management in Aug. 2014 primarily due to stronger-than-expected demand for refined products during the quarter. Distributable cash flow (DCF), a non-GAAP financial measure that represents the amount of cash generated during the period that is available to pay distributions, increased to $183.4 million or $0.81 per share for third quarter 2014, an increase of $42.3 million or 30% higher than the third-quarter 2013 DCF of $141.1 million or $0.62 per share. Net income excluding commodity-related adjustments was $161,827,000. Approximately $38.6 million of net income increase is attributable to commodity-related adjustments, which are primarily the mark-to-market gains on economic hedges.
For the nine months, the company's total revenue was $636,653,000 compared to $11,320,168,000 a year ago. Operating profit was $679,144,000 compared to $481,586,000 a year ago. Income before provision for income taxes was $591,232,000 compared to $395,395,000 a year ago. Net income was $587,434,000 or $2.58 per diluted share compared to $392,230,000 or $1.73 per diluted share a year ago. Adjusted EBITDA was $778,522,000 compared to $576,405,000 a year ago. Distributable cash flow was $632,414,000 or $2.79 per share compared to $433,150,000 or $1.91 per share a year ago.
Based on solid financial results to date and outlook for the remainder of the year, management is raising its 2014 DCF guidance by $25 million to $865 million and remains committed to its goal of increasing annual cash distributions by 20% for 2014 and 15% for 2015. For DCF purposes, operating results of the BridgeTex pipeline will not impact 2014, with the initial DCF benefit expected to occur in 2015 due to the timing of the pipeline's start-up and cash distribution payments from the joint venture to Magellan, which will be paid in arrears on a quarterly basis. Including actual results so far this year, net income per limited partner unit is estimated to be $3.50 for 2014, which results in fourth-quarter guidance of 92 cents. Guidance excludes future MTM adjustments on the partnership's commodity-related activities. The company expects net income of $795,000,000, depreciation and amortization of $163,000,000 and adjusted EBITDA of $1,066,000,000. Based on the expansion projects, the company expects to spend $775 million during 2014 with additional spending of $450 million in 2015 and $75 million in 2016 to complete the projects now in process. Total spending has increased $100 million from the last guidance, primarily due to the addition of a number of new projects, including expansions of Wichita, Kansas, and Odessa, Texas, truck racks, connectivity to Phillips 66's Cross Channel project in the Houston area, addition of butane blending at a few locations along network and new truck unloading capabilities for crude oil at Longhorn origin point at Crane.