Magellan Midstream Partners has allocated $1.4 billion on construction and expansion projects until 2018.
In its third quarter financial results, it says it remains focused on expansion opportunities and continues to identify new opportunities for future growth. It expects to spend $850 million in 2016, $300 million in 2017 and 250 million 2018 to complete its current slate of construction projects.
These estimates include an incremental $100 million of spending for new growth projects, such as construction of additional storage at the partnership’s Galena Park, Texas terminal and along Magellan’s refined product pipeline system as well as a new Wyoming origin for the Saddlehorn pipeline.
Construction is almost complete for its Corpus Christi condensate splitter and significant progress has been made on its HoustonLink and Seabrook Logistics joint ventures.
The company says it is evaluating well in excess of $500 million of other potential growth projects in earlier stages of development and acquisition opportunities.
Its net income for the third quarter was $194.6 million compared to $251 million for the same quarter the previous year. This decrease was due to reduced profits from its commodity-related activities due to mark-t-market pricing adjustments for related hedging positions.
Michael Mears, CEO says: ‘Magellan continues to deliver solid financial results while maintaining our focus on developing opportunities to grow our business in a disciplined manner. During the third quarter of 2016, we successfully started operation of the Little Rock and Saddlehorn pipelines, representing key infrastructure projects to deliver refined petroleum products and crude oil to important demand centres.’