US Magellan Midstream Q4 net income rises 39.4% year on year

05 February 2013 22:14  [Source: ICIS news]

HOUSTON (ICIS)--US-based pipeline operator Magellan Midstream Partners on Tuesday announced increases in quarterly net income and operating profits of more than 30% each.

Net income for Q4 2012 was $153.8m (€113.8m), up 39.4% from $110.3m in Q4 2011. Operating profits for Q4 2012 were $182.7m, up 30.7% from $139.8m from Q4 2011.

Meanwhile, net income for 2012 was $435.7m, up 5.3% from $413.6m in 2011. Operating profits for 2012 were $552.1m, up 5.6% from $522.9m in 2011.

"Magellan produced exceptional returns during 2012, generating record operating and financial results from our current assets, launching new crude oil opportunities that solidify our position as a key storage and logistics provider in the crude oil space and increasing cash distributions to our investors by 18% for the year," said CEO Michael Mears. "We enter 2013 poised for an exciting year, with our solid business model, strong balance sheet and attractive fee-based growth projects expected to provide significant benefit for our investors and customers for years to come."

Magellan said it is making significant progress on its current list of projects, with a company-record $365m spent during 2012 on organic growth construction projects. The partnership said it plans to spend approximately $700m during 2013 with an additional $290m of spending in 2014 to complete these projects.

The company said its Crane-to-Houston pipeline project in Texas (also known as the Longhorn pipeline) remains on schedule, with the partnership expecting to begin filling the reversed pipeline with crude oil in mid-March. Partial operations at an estimated 75,000 bbl/day should begin in mid-April, Magellan said, and increase to the pipeline’s full 225,000-bbl/day capacity in Q3 2013.

The Double Eagle joint venture in south Texas is also proceeding and expected to be partially operational in March 2013, with full operation expected in Q3 2013. The pipeline will move Eagle Ford Shale condensate to Corpus Christi.

The recently launched BridgeTex pipeline joint venture is underway, with right-of-way and permitting work in process, the company said. This pipeline from Colorado City, Texas, to Houston is expected to be operational in mid-2014. 

The partnership also continues to evaluate more than $500m of potential growth projects in earlier stages of development as well as possible acquisitions, both of which have been excluded from these spending estimates.

($1 = €0.74)

By: Jeremy Pafford
+1 713 525 2653

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