Tulsa — Magellan Midstream Partners LP reported operating margins of $4.48 million on revenues of $6.66 million for the second quarter ending June 30, 2012, compared to the year-ago $2.03 million on revenues of $5.75 million. The company cited a slight uptick in volumes at 93,000 st, up from 91,000 st, as well as higher tariffs, up an average 11 percent, and reduced costs due to the completion of hydro testing on its anhydrous ammonia pipeline system. Six-month margins were $8.38 million on revenues of $13.0 million, up from the year-ago $5.73 million on revenues of $12.8 million. Volumes were off at 382,000 st from 412,000 st. Company-wide, Magellan reported record net income of $137.8 million ($1.22 per diluted share) on revenues of $449.5 million for the second quarter, compared to the year-ago $103 million ($0.91 per share) on revenues of $383.3 million. The company has announced that it significantly increased the partnership’s quarterly cash distribution to 94.25 cents per unit for the period April 1-June 30, 2012, representing the 41st distribution increase since its initial public offering in 2001. The second-quarter 2012 distribution is 20 percent higher than the second-quarter 2011 distribution of 78.5 cents per unit, and represents a 12 percent increase over the first-quarter 2012 distribution of 84 cents. Six-month net income was $231.3 million ($2.04 per share) on revenues of $943 million, up from $193.1 million ($1.71 per share) and $826.2 million.
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