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Update on Magellan Midstream Partners August 24, 2010

Posted by shaferfinancial in Finance, Uncategorized.
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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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