Magellan Midstream Increases Scope and Extends Open Season for Potential Expansion of Western Leg of Texas Refined Products Pipeline System

News provided by

May 02, 2018, 09:00 ET

TULSA, Okla., May 2, 2018 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today an increased scope and extension of the open season to solicit commitments from shippers for the potential expansion of the western leg of its refined products pipeline system in Texas. Binding commitments are now due by 5:00 p.m. Central Time on May 16, 2018. Significant interest has been expressed from potential shippers, and the one-week extension provides interested shippers additional time to finalize their commitments.

The proposed expansion would increase Magellan's capability to transport refined petroleum products, such as gasoline and diesel fuel, to demand centers in Abilene, Midland/Odessa and El Paso, Texas, with further optionality to access markets in the states of New Mexico and Arizona, as well as international markets in Mexico via connections to other pipelines owned by Magellan and third parties. Magellan's extensive refined products pipeline system provides shippers with significant optionality, including connectivity to multiple Gulf Coast refineries and terminals as well as various midcontinent refinery connections, all of which are available supply alternatives for shippers interested in accessing these markets.

The pipeline's current capacity of 100,000 barrels per day (bpd) could increase to 145,000 bpd following the expansion, or 5,000 bpd more than initially anticipated. If supported by sufficient commitments, the pipeline capacity could be expanded further.

Magellan is also considering the construction of a new refined products terminal in Midland on 100 acres of recently-acquired land if warranted by customer demand.

Subject to the results of this open season and receipt of all necessary permits and approvals, the expanded capacity and Midland terminal could be operational by mid-2020.

For customer inquiries about the open season, please contact Tony Wysocki at (918) 574-7174 or [email protected]. More information about the open season is available at www.magellanlp.com/whatwedo/liquidpipelinetariffs.aspx.

About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.

Portions of this document constitute forward-looking statements as defined by federal law. Although management of Magellan Midstream Partners, L.P. believes such statements are based on reasonable assumptions, actual outcomes may be materially different. Among the key risk factors that may have a direct impact on the opportunity described in this news release are: (1) the ability to negotiate and sign definitive agreements with potential customers; (2) the ability to obtain all required rights-of-way, permits and other governmental approvals on a timely basis; (3) price fluctuations and overall demand for refined petroleum products; (4) changes in the partnership's tariff rates or other terms as required by state or federal regulatory authorities; (5) the occurrence of an operational hazard or unforeseen interruption; (6) disruption in the debt and equity markets that negatively impacts the partnership's ability to finance its capital spending and (7) willingness to incur or failure of customers or vendors to meet or continue contractual obligations related to this potential expansion. 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, including the partnership's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017 and subsequent reports on Form 8-K. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, especially under the heading "Risk Factors." Forward-looking statements made by the partnership in this release are based only on information currently known, and the partnership undertakes no obligation to revise its forward-looking statements to reflect events or circumstances learned of or occurring after today's date.