Magellan Midstream 3Q profit tumbles 22 pct

Magellan Midstream 3rd-qtr profit tumbles 22 pct on commodity price weakness

• On 12:29 pm EST, Tuesday November 3, 2009

TULSA, Okla. (AP) -- Magellan Midstream Partners LP, which transports, stores and distributes refined petroleum products, on Tuesday said its third-quarter earnings tumbled 22 percent as rebounding energy prices still fell far short of record-high prices in the prior-year quarter.

Commodity prices remained weak in the third quarter of 2009, but signs of an economic recovery sparked some stabilizing forces.

Most notably, crude oil prices recovered, trading between $59 per barrel and $74 per barrel in the most recent quarter. This range is well above record lows in early 2009, but still far short of record levels as high as $147.27 per barrel in the prior-year quarter.

"Record quarterly gasoline shipments and record results from our terminals segment, driven in part from expansion projects, have helped to offset the negative impact of lower commodity prices and lower diesel fuel shipments this year," said Don Wellendorf, the company's CEO.

The compan03y said it earned $54.2 million, or 43 cents per share, compared with $69.4 million, or 46 cents per share during the same period last year.

Analysts surveyed by Thomson Reuters estimated a profit of 61 cents per share, on average. Analysts typically exclude one-time items.

Revenue dropped 18 percent to $239.8 million, down from $292.2 million in the prior-year period. Analysts forecast an average revenue of $248.3 million.

The company expects a full-year profit of $2.25 per share. Analysts forecast earnings of $2.31 per share, on average.

Shares of the company fell 6 cents to $38.65 in midday trading.

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