Magellan Midstream increases quarterly cash distribution

The Board of Directors of Magellan Midstream Partners, L.P. has increased the partnership's quarterly cash distribution to US$0.695 per unit for the period 1 October through 31 December 2014, representing the 51st distribution increase since its initial public offering in 2001.

The fourth-quarter 2014 distribution is 19% higher than the fourth-quarter 2013 distribution of US$0.585 per unit and represents a 4% increase over the third-quarter 2014 distribution of US$0.6675. For the year, Magellan declared distributions of US$2.615 per unit for 2014, or 20% higher than distributions of US$2.1825 per unit for 2013. The new distribution, which equates to US$2.78 per unit on an annualised basis, will be paid on 13 February to unitholders of record at the close of business on 6 February.

This announcement is intended to be a qualified notice to nominees 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, the partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Adapted from press release by Rosalie Starling

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