Magellan Midstream Partners has reported higher contributions from each of its operating segments in its first quarter 2017 financials.
Its crude oil segment operating margin increased by $1.1 million. Transportation and terminals revenue increased primarily due to additional leased storage contracts at Magellan’s East Houston terminal and higher transportation revenues.
In its refined products segment, its operating margin increased by $50.2 million, primarily related to the impact of MTM adjustments for exchange-traded futures contracts used to hedge its commodity-related activities.
Transportation and terminals revenue increased $17.1 million between periods primarily due to operating results from the Little Rock pipeline that commended commercial operations in July 2016, 4% higher shipments on other segments of the partnership’s pipeline system driven by stronger demand for refined products and higher average tariffs from the partnership’s mid-2016 tariff adjustment.
Its marine storage segment also increase thanks to new storage tanks at its Corpus Christi, Texas facility and overall increased customer activity.
Michael Mears, CEO, says: ‘Magellan reported solid financial results in the first quarter of 2017, with higher contributions generated from each of our operating segments. In addition, we recently commenced operations for a number of our joint venture projects, including Seabrook Logistics, which will serve as Magellan’s solution to meet the industry’s growing need for crude oil marine terminal infrastructure.
‘We remain focused on operating our business in a safe and financially sound manner while continuing to develop additional opportunities to grow our company.’