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Update on Magellan Midstream Partners August 24, 2010

Posted by shaferfinancial in Finance, Uncategorized.

Latest quarterly update on Magellan Midstream Partners was very positive.  The second quarter saw record income.  Cash flow was the second best ever.  Volume transported was up 7%, mainly in Diesel transportation.  Inventory storage was higher.  Operating income was up 59% from the year before.  All this and the Longhorn line has not produced any revenues yet.

It is on target to add $565M in new projects.  The latest acquisition came from a purchase from BP which was at a favorable price.

As I mentioned before they raised the dividend to $.7325/share from $.72 pushing my yield on cost to close to 9.5%.

The stock price has gone up substantially to $49.26 from $47.53 since the end of the 1st quarter [+4%].  The yield at current price is just below 6%.  I think the stock has become a bit pricey, but still represents fair value in this market.



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