Magellan Midstream Partners, L.P.
) raised its first quarter 2013 cash distribution by 2%
sequentially and 21% year over year to 50.75 cents per unit
($2.03 per unit annualized).
The cash distribution is up 287% since its initial public
offering (IPO) in the beginning of 2001. Magellan Midstream's new
distribution is payable on May 15 to unitholders of record as on
May 8, 2013.
Tulsa, Oklahoma-based Magellan Midstream is a master limited
partnership ("MLP") that owns and operates a diversified
portfolio of energy infrastructure assets. The partnership
primarily transports, stores and distributes refined petroleum
products and, to a lesser extent, ammonia.
The oil distributor conducts its operations in three segments:
Petroleum Products Pipeline System, Petroleum Products Terminals
and Ammonia Pipeline System.
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The proposed hike in distribution at Magellan Midstream is in
sync with its goal of raising the annual distribution by 10% in
2013. The partnership has a proven history of distribution growth
with 44 quarterly increases since inception.
Magellan Midstream, which is slated to report its first-quarter
results on May 2, has bolstered its cash flows recently on the
back of benefits from acquired assets and growth projects,
escalating demand for petroleum products and improved tariff
Magellan Midstream currently carries a Zacks Rank #2 (Buy),
implying that it is expected to outperform the broader U.S.
equity market over the next one to three months.
Apart from Magellan Midstream, one can look at
Atlas Pipeline Partners L.P.
Delek Logistics Partners L.P.
Energy Transfer Partners L.P.
) as good buying opportunities. These domestic oil and natural
gas explorers - also sporting a Zacks Rank #2 (Buy) - have solid
secular growth stories with potential to rise from current