Magellan Midstream Finishes Acquisition

October 2010 Vol. 237 No. 10

Magellan Midstream Partners L.P. completed acquisition of 7.8 MMbbls of crude oil storage and 100 miles of active petroleum pipelines from BP Pipelines (North America) Inc. for $289 million. The partnership will also acquire crude oil tank working inventory for $50 million.

The partnership plans to build an incremental 2.25 MMbbls of crude oil storage in the crude oil hub of Cushing, OK in conjunction with a private investor group. Combined with the initial 2 MMbbls announced in May, this crude oil construction project totals 4.25 MMbbls of storage, all supported by long-term customer contracts. Magellan will be the majority owner and operator of the storage.

Including acquisitions to date, expansion spending estimates are $565 million during 2010 with an additional $125 million, primarily in 2011, necessary to complete these projects. For more information, see www.magellanlp.com.