Magellan Midstream Partners reported an increase in second quarter profits with a disributable cash flow of more than $250 million, according to the company.
Net income was more than $210 million, up from about $188 million in the second quarter of last year.
Magellan attributed its stronger position to a number of factors that include stronger-than-expected demand for distillate and increased crude oil shipments through the BridgeTex pipeline.
For details, the company said in a statement that "refined products operating margin was $214.4 million, an increase of $37.1 million. Transportation and terminals revenue increased $30.1 million between periods... [and] Crude oil operating margin was $105.8 million, an increase of $8.9 million.
"Marine storage operating margin was $32.2 million, an increase of $3.3 million.
"Depreciation and amortization increased due to recent expansion capital expenditures, and G&A expense increased because of higher employee headcount mainly as a result of expansion projects and more equity-based compensation expense due to timing of accrual adjustments."
By Mike Shiloh
Copyright August 07, 2017, Mike Shiloh, Texas Energy Report LLC, www.texasenergyreport.com, All rights are reserved