Magellan Midstrream declares increased quarterly distribution

The board of directors of Magellan Midstream Partners, L.P. in Tulsa has declared a quarterly cash distribution of $1.0275 per unit for the period Jan. 1 through March 31, 2020.

The first-quarter 2020 distribution is 2% higher than the first-quarter 2019 distribution of $1.005 per unit and consistent with the fourth-quarter 2019 amount.

“During this period of unprecedented restrictions on economic activity and commodity price declines, we have heard clearly from our investors that stability of the distribution and healthy distribution coverage remain of utmost importance to them,” said Michael Mears, chief executive officer. “Magellan’s resilient business model and strong balance sheet position us well to weather this environment; however, given the uncertain timing of the return of refined products demand to more historical levels, we believe it is prudent to maintain our current cash distribution amount at this time out of an abundance of caution.”

The distribution, which equates to $4.11 per unit on an annualized basis, will be paid May 15 to unitholders of record at the close of business on May 8.

This announcement is intended to be a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b), with 100% of the partnership’s distributions to foreign investors attributable to income that is effectively connected with a United States trade or business. Accordingly, the partnership’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Magellan Midstream Partners, L.P.plans to announce financial results for first quarter 2020 before the market opens on Fri., May 1. Management will discuss first-quarter 2020 earnings and outlook for the remainder of the year during a conference call with analysts at 1:30 p.m. Eastern the same day.

Source: Business Wire