Magellan Midstream Raises Cash Flow, Profit Estimates on Higher Prices
(Reuters) — Magellan Midstream Partners LP raised its cash flow and profit forecasts for this year as it expects higher oil and products prices to lead to increased flows in its pipelines, the company said on Thursday.
Pipeline companies are expected to see higher transportation volumes as producers ramp up output at $100 a barrel.
Plains All American raised its profit forecast for the year on Wednesday, saying higher oil and gas prices are expected to boost production and volumes shipped on pipelines from the top U.S. Permian shale field.
Magellan increased its guidance for cash available for distribution to its unit holders by $15 million to $1.09 billion for 2022 and said net income would be 3.6% higher at $4.35 per unit.
The company said it shipped 11% more crude oil through its pipelines at 46.5 million barrels in the first quarter, while shipments of products declined 10%.
Overall net income fell 25% to $166 million for the first quarter, primarily due to hedging positions in place and as the pipeline operator saw a boost in the year ago quarter from winter storms.
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