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Pipeline operator Magellan Midstream Partners LP (MMP - Analyst Report) raised its third-quarter 2013 cash distribution 5% sequentially and 15% year over year to 55.75 cents per unit ($2.23 per unit annualized). The new distribution is payable on Nov 14, 2013 to unitholders of record as of Nov 7, 2013.

In fact, the partnership has a long history of increasing cash distributions. This is Magellan Midstream’s forty-sixth distribution hike following its initial public offering in 2001. Since then, its cash distribution has increased 325%.

Moreover, the distribution hike reflects the partnership’s continued strong performance, backed by strong operating results, good investments and a diligent execution of its strategic plan.

Tulsa, OK-based 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 Midstream conducts its operations in three segments: Refined Products, Crude Oil and Marine Storage.

The partnership is slated to report its third-quarter 2013 earnings on Oct 31, 2013, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter is a profit of 58 cents per share.

Magellan Midstream currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at oil and gas production pipeline MLPs like Pioneer Southwest Energy Partners LP , Energy Partners LP (ETE - Snapshot Report) and Energy Transfer Partners LP (ETP - Analyst Report) that offer better prospects. While Pioneer Southwest Energy sports a Zacks Rank #1 (Strong Buy), Energy Partners and Energy Transfer Partners retain a Zacks Rank #2 (Buy).

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