Tulsa-Magellan Midstream Partners LP (MMP) reported a $3.37 million operating loss for its anhydrous ammonia pipeline for the third quarter ending Sept. 30, 2009, on sales of $4 million. MMP said both margins and expenses were negatively impacted by additional maintenance work performed on the pipeline during the quarter. Expenses during the quarter were $7.4 million, with volumes of 125,000 st. For the year-ago quarter, the unit had operating margins of $362,000 on sales of $5.1 million, with expenses of $4.7 million and volumes of 177,000 st. In August, MMP settled allegations made by the U.S. Environmental Protection Agency relating to two ammonia pipeline leaks for a penalty of $3.7 million, and agreed to perform certain operational enhancements (GM Aug. 24). It also settled a third-party operator defense and indemnification demand for $800,000. Nine-month operating results were also in the negative column at $1.2 million on sales of $12.5 million, with expenses of $13.7 million and volumes of 420,000 st. The year-ago period saw operating margins of $6.7 million on sales of $16.5 million, with expenses of $9.8 million and volumes of 624,000 st. Company-wide, third-quarter net income was $54.2 million ($.43 per unit) on sales of $239.8 million, versus the year-ago $69.3 million ($.46 per unit) and $292.2 million, respectively. Nine-month net income was $144.5 million ($1.11 per unit) on sales of $660.9 million, versus the year-ago $249.0 million ($1.70 per unit) and $912.0 million.
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