Magellan Midstream Partners' (MMP) first-quarter 2008 results came in better than expected, with operating earnings up 22% from the year-earlier level, excluding contribution from the insurance settlement. Importantly, the partnership raised its quarterly distribution for the 28th consecutive quarter to the annualized run rate of $2.69 per unit, up 9% year over year.
Distributable cash flows were up 23% from the year-earlier level, representing a coverage ratio of 1.13x for the quarter. Management reiterated their goal of 8% to 10% annual distribution growth through 2010.
In its Petroleum Product's Terminal segment, operating margin was $26.8 million, up nearly 27% year over year. The positive comparison was due to contribution from expansion projects at the partnership's marine terminals and higher additive fees at its inland terminals, which more than offset lower inland throughput volumes.
Read the analyst note on MMP.
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