Magellan Midstream Partners Q1 Profit More Than Doubles

(RTTNews) - Magellan Midstream Partners L.P. (MMP) said that net income for first quarter 2014 more than doubled to $242.6 million compared to $113.0 million in first quarter 2013, and net income per limited partner unit increased to $1.07 in first quarter 2014 versus $0.50 in the corresponding 2013 period.

Distributable cash flow or DCF, a non-GAAP financial measure that represents the amount of cash generated during the period that is available to pay distributions, increased to a quarterly record of $253.2 million for first quarter 2014, more than double the first-quarter 2013 DCF of $123.9 million.

Total revenue for the quarter grew to $618.61 million from last year's $432.42 million.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.68 per share and revenues of $509.16 million for the quarter. Analysts' estimates typically exclude special items.

Based on the progress of expansion projects already underway, the partnership currently plans to spend approximately $700 million in 2014 with additional spending of $325 million in 2015 and $75 million in 2016 to complete its current slate of construction projects.

In addition, Magellan said it continues to evaluate well in excess of $500 million of potential growth projects in earlier stages of development as well as possible acquisitions, both of which have been excluded from the partnership's spending estimates.

The company raised its 2014 DCF guidance by $80 million to $810 million primarily as a result of strong financial results to date and remains committed to its goal of increasing annual cash distributions by 20% for 2014 and 15% for 2015.

Including actual results so far this year, net income per limited partner unit is estimated to be $3.25 for 2014, with second-quarter guidance of $0.72. Guidance excludes future MTM adjustments on the partnership's commodity-related activities.

Analysts expect the company to report earnings of $0.70 per share for the second-quarter, and $2.89 per share for fiscal 2014.