Magellan Midstream +1.6% as Q1 profit surges, DCF outlook raised

|About: Magellan Midstream Partners... (MMP)|By:, SA News Editor

Magellan Midstream Partners (MMP +1.6%) opens higher after Q1 earnings more than doubled Y/Y on 43% higher revenues.

MMP says Q1 distributable cash flow increased to a quarterly record of $253.2M, more than double Q1 2013 DCF of $123.9M; raises 2014 DCF guidance by $80M to $810M and reaffirms its commitment to the goal of increasing annual cash distributions by 20% for 2014 and 15% for 2015.

Issues upside earnings guidance for FY 2014, seeing EPS of $3.25 vs. $2.89 analyst consensus estimate.

Plans to spend ~$700M in 2014 with additional spending of $325M in 2015 and $75M in 2016 to complete its current slate of construction projects; also continues to evaluate $500M-plus of potential growth projects in earlier stages of development as well as possible acquisitions.

Also says it is proceeding with its pipeline project to deliver refined petroleum products to Little Rock, Ark., supported by commitments from its recent open season.