Magellan Midstream Closes Texas-New Mexico Pipeline Acquisition
TULSA, Okla., July 1, 2013
TULSA, Okla., July 1, 2013 /PRNewswire/ --Magellan Midstream Partners, L.P.
(NYSE: MMP) announced today that it has closed on its previously-announced
acquisition of pipeline assets in Texas and New Mexico from Plains All
American Pipeline, L.P. (NYSE: PAA).
The pipeline system includes approximately 250 miles of common carrier
pipeline that transports refined petroleum products from El Paso, Texas,
delivering products north to Albuquerque, New Mexico and transporting products
south to the U.S.-Mexico border for delivery within Mexico via a third-party
"This pipeline system serves as a natural extension of our existing refined
products pipeline system, with current connections in the El Paso market,"
said Michael Mears, chief executive officer. "With this newly-acquired
pipeline system, Magellan is able to provide options for customers in
Albuquerque and central New Mexico to access refined products from West Texas,
Gulf Coast and Mid-Continent refiners."
Magellan's acquisition of the previously-announced Rocky Mountain pipeline
system is pending, subject to approval by the Federal Trade Commission. The
Rocky Mountain acquisition includes approximately 550 miles of common carrier
pipeline that distributes refined petroleum products in Colorado, South Dakota
Of the previously-announced combined purchase price of $190 million, $57
million was allocated to the Texas-New Mexico pipelines, which Magellan funded
with cash on hand.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership
that primarily transports, stores and distributes refined petroleum products
and crude oil. 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, 2012 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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