Magellan Midstream Partners, L.P. (MMP) announced that its board of directors has approved a two-for-one split of the partnership's limited partner units. Holders of record at the close of business on Sept. 28, 2012 will receive one additional limited partner unit for each unit owned on that date. The units will be distributed on Oct. 12, 2012.
"Magellan has grown immensely since our initial public offering in Feb. 2001, and our investors have benefited from that growth. We have increased our quarterly cash distribution 41 times, for a total distribution increase of 259%, and our unit price has risen more than seven-fold since that time," said Michael Mears, chief executive officer. "This unit split, the second in Magellan's history, reflects our confidence in the future growth of Magellan and enhances our liquidity by making our equity more accessible and affordable to a larger group of new investors."
Following the two-for-one split, the current annual cash distribution of $3.77 per unit will become $1.885 per unit, or 47.125 cents per unit on a quarterly basis, and 226.2 million limited partner units will be outstanding.