kodda/iStock via Getty Images Magellan Midstream Partners (NYSE:MMP) +0.7% in Thursday’s trading after reporting lower than expected Q4 adjusted earnings, but it shipped more refined products and crude oil last year and expects the trend to continue in 2023. Q4 net income fell to $187M, or $0.91/share, from $244M, or $1.14/share, in the year-earlier quarter, as 2022 results were hurt by a $58M non-cash charge for the impairment related to the Double Eagle pipeline joint venture. Q4 distributable cash flow rose to $345M from $297M for the prior-ear quarter, and free cash flow improved to $324M from $291M in last year’s Q4. Magellan (MMP) said Q4 volume of refined products shipped rose to 144.5M barrels from 142M barrels in the year-earlier quarter; volume of crude oil shipped via its 100%-owned assets jumped to 65.2M barrels from 44.3M a year ago. For FY 2023, Magellan (MMP) expects to generate DCF of $1.18B, 1.38x the amount needed to pay cash distributions for the year, and free cash flow is projected at $1.07B, or $216M after distributions. The partnership expects FY 2023 crude oil transportation volume on its wholly-owned pipelines will increase over 2022 levels, primarily related to the full-year impact of higher shipments on the Houston distribution system from a recent pipeline connection. Guidance assumes demand for refined products will remain steady, with 2023 refined products shipments expected ~1% higher than record annual volume moved in 2022; refined products tariffs are expected to increase by an all-in average of ~8% on July 1. Magellan Midstream Partners’ (MMP) units have gained 8% so far this year and 9% during the past year.
