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MMP reports quarter May 12, 2010

Posted by shaferfinancial in Finance, Uncategorized.
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Magellan Midstream Partners reported the first quarter of 2010.  The quarter was good with operating profits going from $45.1M to $69.2M year over year resulting in net income per limited partner doubling to $.60 for the quarter.  The latest acquisition, the Long Horn Line, has not come on-line enough to produce profits or cash flow.  The system moved around 2% less product than the first quarter 2009.  However, the company stated this is because the system is so full it can’t accept all the product that customers wanted to put into the system.  Total revenue was up 12%, year-on-year, for the pipelines and terminals.  It also raised the dividend $.01 for the 1st quarter an increase of a little over 1%.  There is talk of using some of the Long Horn line going EAST into Houston from West Texas for crude oil, which would dramatically increase its potential.

Over the quarter, the price of the stock went from $43.33 to $47.53 or a 10% rise.  It is currently yielding 6.26% at current price.  My yield on cost is around 9.2%.  I think it is currently at a fair price.  My rate of return this quarter was 12.3%.

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