Tulsa-Magellan Midstream Partners LP’s anhydrous ammonia pipeline saw a drop in operating margins to $111,000 on revenues of $3.23 million for the first quarter ending March 31, 2009, versus the year-ago $3.17 million and $5.42 million. First-quarter ammonia volumes were only 124,000 st, versus the year-ago 220,000 st. Magellan cited operational issues at customer production facilities, which have now been resolved, and unfavorable farming conditions during the early 2009 season, primarily due to wet weather. Operating expenses increased due to higher environmental costs to $3.1 million, up from the year-ago $2.25 million. Company-wide, net income was down to $45.2 million ($.34 per diluted lp unit) on sales of $212.8 million, versus the year-ago $93.3 million ($1.10 per unit) and $346.5 million. However, excluding a one-time gain, the year-ago net income was $66.8 million. Management continues to estimate 2009 net income at $2.60 per unit, including $.63 for the second quarter.
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