Pipeline operator Magellan
Midstream Partners L.P.
), announced its second quarter 2013 cash distribution of 53.25
cents per unit payable on Aug 14, 2013, to its unitholders of
record on Aug 7.
This Tusla, Oklahoma-based partnership appears committed to share
its increased benefits with unitholders. The latest hike reflects
an increase of 13% from 47.125 cents paid in second quarter 2012
and 5% from 50.75 cents in the previous quarter. The annualized
value of the new distribution is $2.13 per unit.
In fact, the partnership has a long history of increasing cash
distributions. This is Magellan Midstream's forty-fifth
distribution hike following its initial public offering in 2001.
Since then, its cash distribution has increased 306%.
A consistent growth record indicates a promising future for
Magellan Midstream. Buoyed by this optimism, the partnership has
increased its annual distribution growth goal to 16% for 2013 and
15% for 2014 from the previously targeted 10% for both
years. However, the partnership's growth prospects might be
dampened by equity and debt markets on which it has to depend for
growth finance as it is a Master Limited Partnership (MLP).
Magellan Midstream operates a diversified portfolio of energy
infrastructure assets. This MLP primarily transports, stores and
distributes refined petroleum products, and, to a lesser extent
ammonia. Magellan Midstream conducts its operation in three
segments: Refined products, Crude oil and Marine Storage.
The partnership is slated to report its second quarter 2013
earnings on Aug 1, 2013, before the market opens. The Zacks
Consensus Estimate for the to-be-reported quarter is a profit of
53 cents per share on revenues of $452 million.
Magellan Midstream currently retain a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can consider
Memorial Production Partners L.P.
Rose Rock Midstream L.P.
Gulfmark Offshore Inc.
) as good buying options. These stocks are expected to perform
well in the short run and currently hold a Zacks #1 (Strong Buy).
GULFMARK OFFSHR (GLF): Free Stock Analysis
MEMORIAL PRODUC (MEMP): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
ROSE ROCK MIDST (RRMS): Free Stock Analysis
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