TULSA, Okla., Feb. 14, 2011 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it has acquired the remaining interest in a joint venture for the construction of 4.25 million barrels of crude oil storage in Cushing, Oklahoma from the private investors who had been partial owners. As a result, Magellan is increasing its 2011 expansion capital spending estimate to $215 million from its previous estimate of $170 million for the acquisition cost and the partnership now funding the full project.
This project, which is estimated to cost approximately $110 million (including the acquisition of the remaining ownership interest), is currently on schedule and expected to be operational in phases beginning second quarter 2011, with the final tanks in service by the end of 2011.
Due to the ramp in utilization of these tanks throughout 2011, distributable cash flow and net income per limited partner unit are not expected to change materially from the 2011 financial guidance provided on Feb. 2.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products, such as gasoline and diesel fuel, and crude oil. The partnership's primary assets include: the longest petroleum products pipeline system in the continental United States at 9,600 miles, which can access more than 40% of the country's refining capacity and imports, as well as 85 petroleum terminals with over 70 million barrels of storage. More information is available at http://www.magellanlp.com.
Portions of this document may constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission.
SOURCE Magellan Midstream Partners, L.P.