TULSA, Okla., Aug. 5 /PRNewswire-FirstCall/ -- Magellan Midstream
Holdings, L.P. (NYSE:MGG) today reported second-quarter 2008
operating profit of $102.1 million compared to $75.2 million for
second quarter 2007. Net income was $30.9 million during second
quarter 2008 versus $14.9 million in second quarter 2007. MGG owns
the general partner interest and incentive distribution rights of
Magellan Midstream Partners, L.P. (NYSE:MMP) and reports its
financial results on a consolidated basis with the financial
results of MMP. The partnership currently has no separate operating
activities apart from those conducted by MMP, and its distributable
cash flow is derived from cash distributions received from MMP.
Related to second quarter 2008, MGG will receive distributions of
$21.9 million from its ownership interest in MMP, almost all of
which is available for distribution to MGG unitholders. "MMP
continues to generate solid financial results and grow its
quarterly cash distribution, which in turn has allowed us to
increase MGG's distributions by 22% compared to second quarter
2007," said Don Wellendorf, chief executive officer. Operating
profit increased between quarters due to higher commodity margins,
higher revenues from each of MMP's business segments and lower
expenses, including a $12.1 million favorable impact from the
settlement of a previously accrued environmental liability for
MMP's petroleum products pipeline system. Non-controlling owners'
interest in income of consolidated subsidiaries, which represents
limited partner interests in MMP that MGG does not own, increased
between quarters due to higher net income generated by MMP in 2008.
The 2007 period was negatively impacted by refinancing costs
related to MMP's early retirement of debt during second quarter
2007. Basic and diluted net income per limited partner unit was 50
cents in second quarter 2008 and 26 cents in second quarter 2007.
The favorable environmental settlement resulted in a 19 cent
increase to 2008 net income per unit. An analyst call with
management regarding second-quarter 2008 financial results and
outlook for the remainder of 2008 for the partnership and MMP is
scheduled today at 1:30 p.m. Eastern. To participate, dial (800)
478-6251 and provide code 4897703. Investors also may listen to the
call via the partnership's web site at
http://www.mgglp.com/webcasts.asp. Audio replays of the conference
call will be available from 4:30 p.m. Eastern today through
midnight on Aug. 11. To access the replay, dial (888) 203-1112 and
provide code 4897703. The replay also will be available at
http://www.mgglp.com/. About Magellan Midstream Holdings, L.P.
Magellan Midstream Holdings, L.P. (NYSE:MGG) is a publicly traded
partnership formed to own the general partner interest and 100% of
the incentive distribution rights in Magellan Midstream Partners,
L.P. (NYSE:MMP), which primarily transports, stores and distributes
refined petroleum products. More information is available at
http://www.mgglp.com/. Portions of this document may 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. 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.
Contact: Paula Farrell (918) 574-7650 MAGELLAN MIDSTREAM HOLDINGS,
L.P. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per
unit amounts) (Unaudited) Three Months Ended Six Months Ended June
30, June 30, 2007 2008 2007 2008 Transportation and terminals
revenues $150,304 $162,580 $293,689 $307,385 Product sales revenues
177,902 110,364 326,565 312,082 Affiliate management fee revenue
183 183 356 366 Total revenues 328,389 273,127 620,610 619,833
Costs and expenses: Operating 59,860 56,794 120,669 112,219 Product
purchases 156,588 75,292 290,568 252,860 Depreciation and
amortization 19,532 21,271 38,809 42,284 Affiliate general and
administrative 18,363 19,060 36,592 37,350 Total costs and expenses
254,343 172,417 486,638 444,713 Gain on assignment of supply
agreement - - -[ 26,492 Equity earnings 1,106 1,377 1,869 1,782
Operating profit 75,152 102,087 135,841 203,394 Interest expense
13,884 12,754 28,106 25,693 Interest income (1,290) (303) (2,201)
(599) Interest capitalized (1,205) (1,110) (2,102) (2,412)
Non-controlling owners' interest in income of consolidated
subsidiaries 44,653 59,425 80,215 131,161 Debt placement fee
amortization 753 169 1,209 337 Debt prepayment premium 1,984 -
1,984 - Other (income) expense 699 (254) 699 (254) Income before
provision for income taxes 15,674 31,406 27,931 49,468 Provision
for income taxes 800 502 1,524 945 Net income $14,874 $30,904
$26,407 $48,523 Allocation of net income: Limited partners'
interest $16,476 $31,308 $28,283 $49,332 General partner's interest
(1,602) (404) (1,876) (809) Net income $14,874 $30,904 $26,407
$48,523 Basic and diluted net income per limited partner unit $0.26
$0.50 $0.45 $0.79 Weighted average number of limited partner units
outstanding used for basic and diluted net income per unit
calculation 62,649 62,654 62,649 62,654 MAGELLAN MIDSTREAM
HOLDINGS, L.P. ALLOCATION OF NET INCOME (In thousands, unless
otherwise noted) (Unaudited) Three Months Ended Six Months Ended
June 30, June 30, 2007 2008 2007 2008 Net income $14,874 $30,904
$26,407 $48,523 Direct charges to the general partner: Reimbursable
general and administrative costs (a) 1,604 408 1,880 816 Income
before direct charges to general partner 16,478 31,312 28,287
49,339 General partner's share of income 0.0141% 0.0141% 0.0141%
0.0141% General partner's allocated share of net income before
direct charges 2 4 4 7 Direct charges to general partner 1,604 408
1,880 816 Net loss allocated to general partner $(1,602) $(404)
$(1,876) $(809) Net income $14,874 $30,904 $26,407 $48,523 Less:
net loss allocated to general partner (1,602) (404) (1,876) (809)
Net income allocated to limited partners $16,476 $31,308 $28,283
$49,332 (a) Reimbursable G&A costs for the three and six months
ended June 30, 2007 include a $1.3 million unusual non-cash expense
related to a payment by MGG Midstream Holdings, L.P., an affiliate
owning the partnership's general partner. This item did not impact
cash available for the partnership to pay cash distributions.
http://www.newscom.com/cgi-bin/prnh/20060201/DAW022LOGO
http://photoarchive.ap.org/ DATASOURCE: Magellan Midstream
Holdings, L.P. CONTACT: Paula Farrell of Magellan Midstream
Partners, L.P., +1-918-574-7650, Web site:
http://www.magellanlp.com/
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