Back to top

Analyst Blog

Tulsa, OK-based publicly traded energy pipeline partnership Magellan Midstream Partners LP (MMP - Analyst Report) reported the pricing of senior notes worth $300 million. The notes, carrying an interest rate of 5.15%, are expected to mature by Oct. 15, 2043. The partnership expects the offering to complete on Oct. 10, 2013.

Magellan Midstream added that the notes will likely be priced at 99.56% of their face value and is expected to have a yield to maturity of 5.179%. The net proceeds – of roughly $295.6 million – from the notes offerings will be utilized for repaying debt under the revolving credit facility and for normal partnership activities. Magellan Midstream might also invest the proceeds in some securities that bear interest.

Magellan Midstream is a master limited partnership (MLP) that owns and operates a diversified portfolio of energy infrastructure assets. The partnership primarily transports, stores, and distributes refined petroleum products and, to a lesser extent, ammonia. Magellan conducts its operations in three segments: Refined Products, Crude Oil and Marine Storage.

Magellan Midstream owns an attractive portfolio of energy infrastructure assets that generate stable and recurring fee- and tariff-based revenues. This includes the longest U.S. refined petroleum products pipeline system, access to more than 40% of the refining capacity in continental U.S. along with imports, and many petroleum terminals with more than 80 million barrels of storage.

Magellan Midstream currently retains a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. equity market over the next one to three months.  

Apart from Magellan Midstream, one can look at other oil and gas pipeline MLPs like Energy Transfer Partners LP (ETP - Analyst Report), Kinder Morgan Energy Partners LP (KMP - Analyst Report) and Pioneer Southwest Energy Partners LP that offer value. All the partnerships sport a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%