Magellan acquires full interest in venture
Mar 7, 2011 3:03 PM
Magellan Midstream Partners LP has acquired the remaining interest in a joint venture for construction of 4.25 million barrels of crude oil storage in Cushing OK from 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 in 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 February 2.
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