TULSA, Okla., June 19 /PRNewswire-FirstCall/ -- Magellan Midstream Partners, L.P. (NYSE:MMP) announced today that it has been selected as the "stalking horse" bidder for substantially all of the assets of Longhorn Partners Pipeline, L.P. Completion of the acquisition is subject to an auction process, bankruptcy court approval and customary regulatory approval.
The 700-mile common carrier pipeline system transports refined petroleum products from Houston to El Paso, Texas. A terminal in El Paso, comprised of a 5-bay truck loading rack and over 900,000 barrels of storage, is included in the purchase. This terminal serves local petroleum products demand and distributes product to connecting third-party pipelines for ultimate delivery to markets in Arizona, New Mexico and in the future to Northern Mexico.
Magellan currently serves as the operator of the pipeline system.
The purchase price for the pipeline system is $250 million plus the fair market value of line fill, which is currently estimated at approximately $90 million. Management intends to finance the acquisition with debt.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE:MMP) is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products. More information is available at http://www.magellanlp.com/. MMP's general partner interest and related incentive distribution rights are owned by Magellan Midstream Holdings, L.P. (NYSE:MGG).
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: Investors: Media:
Paula Farrell Bruce Heine
(918) 574-7650 (918) 574-7010
http://www.newscom.com/cgi-bin/prnh/20031107/DAMAGELOGO http://photoarchive.ap.org/ DATASOURCE: Magellan Midstream Partners, L.P.
CONTACT: Investors, Paula Farrell, +1-918-574-7650, , or Media, Bruce Heine, +1-918-574-7010, , both of Magellan Midstream Partners, L.P.
Web Site: http://www.magellanlp.com/
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