Magellan Midstream Significantly Increases Quarterly Cash Distribution to 94.25 Cents; +20% YoY, +12% Sequentially

The board of directors of Magellan Midstream Partners, L.P. (NYSE: MMP) has significantly increased the partnership's quarterly cash distribution to 94.25 cents per unit for the period April 1 through June 30, 2012, representing the 41st distribution increase since its initial public offering in 2001. The second-quarter 2012 distribution is 20% higher than the second-quarter 2011 distribution of 78.5 cents per unit and represents a 12% increase over the first-quarter 2012 distribution of 84 cents. "Magellan is pleased to provide a larger-than-expected distribution payout to investors this quarter," said Michael Mears, chief executive officer. "Our base business and growth projects continue to generate considerably more cash flow than necessary to comfortably increase our annual distribution by more than the 9% growth initially targeted for 2012. Looking ahead, we are now targeting distributions for full-year 2012 that are 18% higher than 2011, with the goal of raising distributions an additional 10% for 2013 as our future results are expected to benefit from additional growth projects coming online." The new distribution, which equates to $3.77 per unit on an annualized basis, will be paid Aug. 14 to unitholders of record at the close of business on Aug. 7.