Despite choppy oil prices, master limited partnership (MLP) Magellan Midstream (NYSE: MMP) has managed to produce record distributable cash flows (DCFs) over the past year. But that’s not altogether surprising, considering 90% of the firm’s income is fee-based, leaving just 10% sensitive to commodity prices. It’s also why we’ve held it in our portfolio over at The Daily Paycheck since 2010. Magellan At A Glance For those who are unfamiliar, Magellan owns 9,700 miles of refined products pipelines that connect with roughly half of the nation’s refineries. It also operates 53 terminals that have 45 million barrels of… Read More
Despite choppy oil prices, master limited partnership (MLP) Magellan Midstream (NYSE: MMP) has managed to produce record distributable cash flows (DCFs) over the past year. But that’s not altogether surprising, considering 90% of the firm’s income is fee-based, leaving just 10% sensitive to commodity prices. It’s also why we’ve held it in our portfolio over at The Daily Paycheck since 2010. Magellan At A Glance For those who are unfamiliar, Magellan owns 9,700 miles of refined products pipelines that connect with roughly half of the nation’s refineries. It also operates 53 terminals that have 45 million barrels of gas and diesel fuel storage capacity. That’s in addition to 2,200 miles of crude oil pipelines that feed storage systems from the Gulf Coast to the nation’s main hub in Cushing, Oklahoma. Magellan doesn’t take possession of any oil or other liquids — it just gets paid for storage and transportation services. That compensation comes in the form of tariffs and fees (often under long-term contracts) based on the volume of oil and refined products flowing through its networks. #-ad_banner-#What’s New With MMP Thanks in part to a 4.4% tariff increase at mid-year, the company delivered record DCF of… Read More