Morningstar Rating

Stock Research and Analysis

by Jason Stevens

Bulls Say

Growing unconventional crude oil production has rejuvenated the pipeline segment with new route opportunities, and strong demand for storage continues.
Even in the face of reduced refined products demand, Magellan can still post revenue increases because of attractive annual regulated tariff increases.
Unlike the majority of MLPs, Magellan has no incentive distribution rights, which promotes faster distribution growth over time, all else equal. Read more 

Bears Say

Need for additional domestic refined product pipelines or storage terminals will probably subside over the next decade, reducing the pool of projects Magellan can pursue.
Like all partnerships that pay out most of their cash flow, Magellan can't accumulate cash in a war chest, forcing it to depend on external funding sources for growth or acquisitions.
Though Magellan faces little direct commodity exposure, commodity prices and spreads affect product demand. Read more 

Management

Michael Mears is chairman of the board, president, and CEO of Magellan's general partner. He took over from retiring CEO Don Wellendorf in 2011, after serving in several management roles within the company over 26 years. Following the simplification   Read more 

Profile

Magellan Midstream Partners is a master limited partnership that operates pipelines and storage terminals in the central and Eastern United States. Its assets transport,  Read more 

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