Magellan Midstream Partners, L.P. has reported a net income of $214.4m in the second quarter 2018 compared to $210.4m in the same period last year.
It’s refined products operating margin was $191.4m, a decrease of $23.1m related to lower commodity profits.
Transportation and terminals revenue increased $13.2m between periods driven by record shipments from strong demand for refined products in large part due to higher distillate demand in crude oil production regions served by the partnership. The current period also benefited from higher storage and other ancillary service fees along Magellan’s refined products pipeline system associated with increased customer activity.
Operating expenses increased $12.6m due to higher personnel costs, more integrity spending, additional environmental accruals and higher property taxes due to a favourable adjustment that benefited the 2017 period.
It’s crude oil operating margin was $152m, an increase of $46.2m and a quarterly record for this segment. Transportation and terminals revenue increased $29.5m primarily due to contributions from the partnership’s condensate splitter in Corpus Christi that began commercial operations in June 2017. The current period also benefited from more spot shipments on the Longhorn pipeline due to the favourable pricing differential between the Permian Basin and Houston, resulting in more volume at a higher average rate. Operating expenses were essentially unchanged between periods.
“Magellan continues to generate strong financial results bolstered by increased demand for our refined products and crude oil infrastructure,” said Michael Mears, Chief Executive Officer. “In addition to solid demand for our current services, we remain committed to developing attractive expansion projects to meet our customers’ needs while generating attractive returns for our investors for years to come.”
For more information, visit: www.magellanlp.com
7th August 2018