Update on Magellan Midstream Partners August 24, 2010Posted by shaferfinancial in Finance, Uncategorized.
Tags: Magellan Midstream Partners
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.