The Board of Directors of Magellan Midstream Partners, L.P. has increased the partnership's quarterly cash distribution to US$0.695 per unit for the period 1 October through 31 December 2014, representing the 51st distribution increase since its initial public offering in 2001.
The fourth-quarter 2014 distribution is 19% higher than the fourth-quarter 2013 distribution of US$0.585 per unit and represents a 4% increase over the third-quarter 2014 distribution of US$0.6675. For the year, Magellan declared distributions of US$2.615 per unit for 2014, or 20% higher than distributions of US$2.1825 per unit for 2013. The new distribution, which equates to US$2.78 per unit on an annualised basis, will be paid on 13 February to unitholders of record at the close of business on 6 February.
This announcement is intended to be a qualified notice to nominees under Treasury Regulation Section 1.1446-4(b), with 100% of the partnership's distributions to foreign investors attributable to income that is effectively connected with a United States trade or business. Accordingly, the partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Adapted from press release by