Magellan Pipeline Company, LLC will serve as operator of the pipeline following a transition period to replace the current operator.
"The partnership's entry into the crude oil pipeline business is a natural progression for us," said Don Wellendorf, chief executive officer. "Our refined petroleum products pipeline system operates in the same geographic area as Osage, which we expect will provide operational synergies for Magellan and Osage."
The acquisition was funded with cash on hand and is expected to increase the partnership's 2004 earnings and cash flow by approximately 3 cents per limited partner unit. Beginning in 2005, the pipeline is expected to generate annual earnings and cash flow of at least 5 cents per unit for Magellan's limited partners.
Most Popular Articles