Magellan Midstream to Acquire 800 Miles of Refined Petroleum Products Pipeline
TULSA, Okla., Feb. 22, 2013
TULSA, Okla., Feb. 22, 2013 /PRNewswire/ --Magellan Midstream Partners, L.P.
(NYSE: MMP) announced today that it has agreed to acquire approximately 800
miles of refined petroleum products pipeline from Plains All American
Pipeline, L.P.(NYSE: PAA) for $190 million.
"This acquisition utilizes Magellan's expertise in transporting and storing
petroleum products," said Michael Mears, chief executive officer. "These
pipelines are a natural extension of our existing refined products
distribution system and provide new markets for Magellan to serve."
Rocky Mountain pipeline system. The acquisition includes approximately 550
miles of common carrier pipeline that distributes refined petroleum products
in Colorado, South Dakota and Wyoming. The system includes 4 terminals with
nearly 1.7 million barrels of storage.
New Mexico pipeline system. Magellan also will acquire about 250 miles of
common carrier pipeline that transports refined petroleum products north from
El Paso, Texas, delivering products to Albuquerque, New Mexico, and transports
products south to the Texas-Mexico border for delivery via a third-party
pipeline within Mexico.
Management expects the acquisition to be immediately accretive to the
partnership's distributable cash flow per unit, with the potential for
additional growth in cash flow from the assets over time.
The acquisition is expected to close in the second quarter of 2013 subject to
regulatory approvals. Management expects to fund the acquisition with cash on
hand and borrowings under its revolving credit facility, if necessary.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership
that primarily transports, stores and distributes petroleum products. The
partnership owns the longest refined petroleum products pipeline system in the
country, with access to more than 40% of the nation's refining capacity, and
can store over 80 million barrels of petroleum products such as gasoline,
diesel fuel and crude oil. More information is available at
Forward-Looking Statement Disclaimer
Portions of this document 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. Among the key risk factors associated with the
acquisition that may have a direct impact on the partnership's results of
operations and financial condition are: (1) its ability to obtain all required
regulatory approvals; (2) price fluctuations and overall demand for refined
petroleum products in the United States; (3) changes in the partnership's
tariff rates or other terms imposed by state or federal regulatory agencies;
(4) shut-downs or cutbacks at major refineries or other businesses that use or
supply the partnership's services; (5) the occurrence of an operational hazard
or unforeseen interruption for which the partnership is not adequately
insured; (6) disruption in the debt and equity markets that negatively impacts
the partnership's ability to finance its capital spending and (7) failure of
customers to meet or continue contractual obligations to the partnership.
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, including the partnership's Annual Report on Form 10-K
for the fiscal year ended Dec. 31, 2011 and subsequent reports on Forms 8-K
and 10-Q. The partnership undertakes no obligation to revise its
forward-looking statements to reflect events or circumstances occurring after
Contact: Investors: Media:
Paula Farrell Bruce Heine
(918) 574-7650 (918) 574-7010
SOURCE Magellan Midstream Partners, L.P.
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