TULSA, Okla., Jan. 23 /PRNewswire-FirstCall/ -- The board of directors for the general partner of Magellan Midstream Holdings, L.P. (NYSE:MGG) has increased the partnership's quarterly cash distribution to 35.9 cents per unit for the period Oct. 1 through Dec. 31, 2008, representing its twelfth consecutive quarterly distribution increase.
The fourth-quarter distribution represents a 17% increase over the fourth-quarter 2007 distribution of 30.7 cents and a 1% increase over the third-quarter 2008 distribution of 35.4 cents per unit. For the year, MGG declared distributions of $1.373 per unit for 2008, or 21% higher than distributions of $1.1345 related to 2007.
The new distribution, which equates to $1.436 per unit on an annualized basis, will be paid Feb. 13, 2009 to unitholders of record at the close of business on Feb. 6.
MGG owns the general partner interest and incentive distribution rights of Magellan Midstream Partners, L.P. (NYSE:MMP). The partnership currently has no separate operating activities apart from those conducted by MMP, and its cash flow is derived from cash distributions received from MMP. Related to fourth quarter 2008, MGG will receive distributions of $23.5 million from its ownership interest in MMP, almost all of which is available for distribution to MGG unitholders.
This announcement is intended to be a qualified notice 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, MGG's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
About Magellan Midstream Holdings, L.P.
Magellan Midstream Holdings, L.P. (NYSE:MGG) is a publicly traded partnership formed to own the general partner interest and 100% of the incentive distribution rights in Magellan Midstream Partners, L.P. (NYSE: MMP), which primarily transports, stores and distributes refined petroleum products. More information is available at http://www.mgglp.com/.
Portions of this document may constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission.
Contact: Paula Farrell
(918) 574-7650
http://www.newscom.com/cgi-bin/prnh/20060201/DAW022LOGO http://photoarchive.ap.org/ DATASOURCE: Magellan Midstream Holdings, L.P.
CONTACT: Paula Farrell of Magellan Midstream Holdings, L.P., +1-918-574-7650, Web Site: http://www.mgglp.com/
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