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Magellan Midstream Partners; 4th Quarter February 8, 2011

Posted by shaferfinancial in Finance, Uncategorized.
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One of my core holdings is Magelllan Midstream Partners. It reported 4th quarter results.
It had a very good quarter with almost all business units thriving.
Transportation volumes increased 12%, while storage terminals increased revenue 12%. The only only down unit was the ammonia pipeline which is undergoing testing that should be done soon.
Net income grew 7% compared to the 4th quarter of 2009. Net income per unit was $.93 excluding an accounting mark to market adjustment. $.78 with the adjustment. On an annual basis the net income per unit increased 22%.
Guidance for 2011 indicated a 7% expected increase in dividends.
Coverage ratio remained slightly elevated at 1.2.
Expected $500M in additional projects for 2011. The Longhorn acquisition is still only at 40% of capacity, so there is room to grow there. They are also still considering reversing the pipeline for crude oil and will make that decision soon.
A great quarter for MMP!
Price however, has gotten out of hand in my opinion. At over $56 and with a yield of 5.3% it is a little pricey for me. I will not be buying more at this elevated price.



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