Boston, MA 05/09/2014 (wallstreetpr) – The 18 billion Tulsa-based master limited partnership Magellan Midstream Partners, L.P. (NYSE:MMP) is enjoying every bit of its business aspect in 2014. As to whether the company will remain in a celebratory mood throughout 2014 is the Big Question. However, if the executive sentiments and the latest quarter performance are reliable pointers, the company looks poised to outperform this year.
The company operates refined petroleum and crude oil pipelines stretching thousands of miles. The company also has a wide network of terminal system. With the robust oil and gas industry in North America, the company has several expansion and new development plans with some projects already underway.
That fact that the company operates some fee-based activities helps to cushion it from price volatility. In addition to increasing capacity and attracting new business contracts, the company is also making internal improvements for the support of the bottom-line.
Latest quarter performance
Magellan Midstream Partners, L.P. (NYSE:MMP)’s 1Q2014 was all about nice things. In addition to a record profit in the quarter, the company also left no doubt about its ability to achieve consistent growth across its various segments.
The company registered $242.6 million profit in 1Q, a firm and record figure for the company. The refined products segment realized operating margin growth of $94.8 million to hit a record $255 million for the quarter. The operating margin for the crude oil segment climbed to $63.3 million, suggesting an increase of $40.6 million compared with 1Q2013.
The new Longhorn Pipeline supported transportation and terminals revenue that hit $44.7 million in 1Q.
Executive comment
According to Magellan Midstream Partners, L.P. (NYSE:MMP), CEO Michael Mears, the company has kicked off fiscal 2014 with compelling strength as evidenced by the record 1Q figures. As such, the company is keen to build on the latest achievement to support positive results for the balance of the years.
Towards that end, Magellan Midstream Partners, L.P. (NYSE:MMP) announced plans to lay out new pipelines that will increase its capacity, enhance customer experience and boost revenue growth. The company has already earmarked about $150 million for the projects.
