Magellan Midstream Partners (MMP, Financial) has announced its most recent quarterly distribution. The company will pay a dividend of 90.5 cents per share on Nov. 14. The ex-dividend date is Nov. 1.
The company has been consecutively increasing its dividend every quarter. The previous payout rate was 89 cents per share. It has a trailing 12-month dividend yield of 5.22%.
The stock is currently trading at $66.21 with a forward dividend yield of 5.47%. Year to date it is down -12.43%. For the one-year period it has a return of -4.31% and for the three-year period it has a return of -17.86%.
Magellan Midstream Partners is a limited partnership with expected distributions paid out to its unit holders. The company is focused on transporting, storing and distributing petroleum products. It owns the longest refined petroleum products pipeline system in the country which runs through the Midwestern U.S.
In its most recent earnings the company beat revenue and earnings per share estimates for the second quarter. Revenue of $619.4 million beat estimates by $55.8 million and increased 19.4% from the comparable quarter. Second-quarter revenue contributed to total revenue for the year of $1.3 billion which is a 21% increase from 2016. Transportation and terminals revenue accounted for 65% of total revenue in the first half of the year. Revenue from refined products across all of the company’s services accounted for 73% of revenue.
Net income of $210.4 million for the second quarter increased 12% from the comparable quarter. For the year net income is now $433.1 million, an increase of 10%. Earnings per share of 92 cents for the second quarter increased 12% from the comparable quarter and beat estimates by 1 cent. Earnings per share for the year are now $1.90 which is an increase of 10% from 2016.
For the first half of the year the company is reporting operating profit of $532.9 million. Operating profit from refined products accounted for 62% of the total.
The company will report its third-quarter earnings on Nov. 2. Following the second quarter it increased its annual distributable cash flow guidance by $20 million to $1.02 billion for 2017. Management reported that the company planned to remain committed to its goal of increasing annual cash distributions by 8% in 2017 and 2018. Net income per limited partner unit is estimated to be 90 cents for the third quarter and $3.85 for 2017.
Magellan Midstream Partners has 228 million shares outstanding with a market cap of $15.4 billion. Institutional shareholders own 64% of the outstanding stock.
Disclosure: I do not own any shares of Magellan Midstream Partners.
