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

  • 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.
Comments (1)
  • tomdgascop
    , contributor
    Comments (77) | Send Message
     
    MMP great company with a right on management team they seem to be spot on making all the correct moves. They have done a wonderful job for their shareholders. I have owned MMP since 2009 could not be more happier if only Obama and the democrats got out of the way of TRP it would do the same !
    7 May, 06:47 AM Reply Like
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