Magellan Midstream Partners (MMP) 8-K Magellan Midstream Partners Announces Record Quarterly Earnings

Exhibit 99.1

NYSE: MMP

Date:April 28, 2006

Contact:	Paula Farrell
	(918) 574-7650
	paula.farrell@magellanlp.com

Magellan Midstream Partners Announces Record Quarterly Earnings

Increases 2006 Earnings Guidance

TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) today reported record quarterly operating profit and net income.

First-quarter 2006 operating profit was $62.8 million compared to $54.0 million for first quarter 2005, representing a 16.3% increase. Net income increased to $48.3 million during first quarter 2006 from $42.1 million in the corresponding 2005 period, a 14.7% increase.

“All of our businesses performed well during the quarter, and we are reaffirming our goal of 8% to 10% growth in distributions in 2006,” said Don Wellendorf, chief executive officer.

An analysis of variances by segment comparing first quarter 2006 to first quarter 2005 is provided below based on operating margin, a financial measure that reflects operating profit before general and administrative (G&A) expense and depreciation and amortization:

Petroleum products pipeline system. Pipeline operating margin was $64.2 million, an increase of $1.5 million. Revenues increased between periods primarily due to increased diesel fuel shipments and higher ancillary services such as additive injections. Higher commodity margins also positively impacted the 2006 quarter as the partnership’s petroleum products blending and fractionation operations continued to benefit from the sale of product during a high price environment. Higher power, property tax and environmental expenses as well as less favorable product overages negatively impacted the current quarter.

Petroleum products terminals. Terminals operating margin was $25.4 million, an increase of $7.8 million and a quarterly record for this segment. The 2006 period principally benefited from revenues from a variable-rate storage agreement. A portion of the partnership’s revenue from this contract is based on a percentage of the customer’s related net trading profit, which was determinable at the end of the contract term that expired Jan. 31, 2006. Further, the addition of the Wilmington, Delaware marine facility, which was acquired in Sept. 2005, and increased throughput and additive fees at the partnership’s inland terminals also increased operating results during first quarter 2006.

Ammonia pipeline system. Ammonia operating margin was $2.5 million, an increase of $1.5 million. The impact of higher tariffs associated with the partnership’s new transportation agreements, which became effective July 1, 2005, and increased shipments benefited the current quarter. Expenses increased primarily due to higher system integrity expenses and power costs.

Depreciation and amortization increased between quarters primarily due to capital spending over the last year. First-quarter 2006 interest expense was higher primarily due to rising interest rates.

Net income per limited partner unit was 55 cents during first quarter 2006 compared to 54 cents during 2005.

Based on financial results to date and expectations for the remainder of 2006, management is increasing its 2006 net income per unit guidance to approximately $2.18. Net income per unit for second quarter 2006 is estimated to be approximately 53 cents.

Management continues to expect significant expansion opportunities during 2006. Based on projects currently underway or in advanced stages of development, capital spending for expansion projects is currently expected to be approximately $175.0 million during 2006, excluding potential future acquisitions.

An analyst call with management regarding first-quarter 2006 financial results and 2006 outlook is scheduled today at 1:30 p.m. Eastern. To participate, dial (800) 810-0924 and provide code 4995889. Investors also may listen to the call via the partnership’s web site athttp://www.magellanlp.com/investors/calendar.asp.

Audio replays of the conference call will be available from 4:30 p.m. Eastern today through midnight on May 4. To access the replay, dial (888) 203-1112 and provide code 4995889. The replay also will be available athttp://www.magellanlp.com.

Management believes that investors benefit from having access to the same financial measures being utilized by the partnership. As a result, this news release and supporting schedules include the non-generally accepted accounting principles measures of operating margin and distributable cash flow, which are important performance measures used by management to evaluate the economic success of the partnership’s operations. Operating margin reflects operating profit before G&A expenses and depreciation and amortization, and distributable cash flow reflects the cash available to pay distributions. Reconciliations of operating margin to operating profit and distributable cash flow to net income accompany this release.

About Magellan Midstream Partners, L.P.

Magellan Midstream Partners, L.P. is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products. More information is available athttp://www.magellanlp.com.

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Portions of this document may constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership’s filings with the Securities and Exchange Commission.

MAGELLAN MIDSTREAM PARTNERS, L.P.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per unit amounts)

(Unaudited)

	Three Months Ended March 31,
	2005			2006
Transportation and terminals revenues	$	112,692		$	130,191
Product sales revenues		145,474			148,896
Affiliate management fee revenue		167			173
Total revenues		258,333			279,260
Costs and expenses:
Operating		44,255			51,113
Environmental		1,200			2,272
Product purchases		131,311			133,595
Depreciation and amortization		12,970			15,201
Affiliate general and administrative		15,126			15,027
Total costs and expenses		204,862			217,208
Equity earnings		518			719
Operating profit		53,989			62,771
Interest expense		12,418			14,088
Interest income		(985	)		(646	)
Debt placement fee amortization		732			677
Other (income)/expense		(299	)		339
Net income	$	42,123		$	48,313
Allocation of net income:
Limited partners’ interest	$	35,977		$	36,685
General partner’s interest		6,146			11,628
Net income	$	42,123		$	48,313
Basic net income per limited partner unit	$	0.54		$	0.55
Weighted average number of limited partner units outstanding used for basic net income per unit calculation		66,361			66,361
Diluted net income per limited partner unit	$	0.54		$	0.55
Weighted average number of limited partner units outstanding used for diluted net income per unit calculation		66,467			66,482

MAGELLAN MIDSTREAM PARTNERS, L.P.

OPERATING STATISTICS

	Three Months Ended March 31,
	2005		2006
Petroleum products pipeline system:
Transportation revenue per barrel shipped (dollars per barrel)	$	1.020	$	1.026
Transportation barrels shipped (million barrels)		65.7		69.0
Petroleum products terminals:
Marine terminal average storage capacity utilized per month (million barrels)		16.5		19.1
Marine terminal throughput (million barrels)		12.4		10.9
Inland terminal throughput (million barrels)		26.1		27.7
Ammonia pipeline system:
Volume shipped (thousand tons)		152		216

MAGELLAN MIDSTREAM PARTNERS, L.P.

OPERATING MARGIN

(Unaudited, in thousands)

	Three Months Ended March 31,
	2005		2006
Petroleum products pipeline system:
Transportation and terminals revenues	$	85,271	$	90,749
Less: Operating expenses		35,129		38,778
Environmental expenses		842		1,908
Transportation and terminals margin		49,300		50,063
Product sales revenues		142,804		143,719
Less: Product purchases		130,125		130,463
Product margin		12,679		13,256
Add: Affiliate management fee revenue		167		173
Equity earnings		518		719
Operating margin	$	62,664	$	64,211
Petroleum products terminals:
Transportation and terminals revenues	$	25,510	$	35,475
Less: Operating expenses		9,182		11,837
Environmental expenses		38		121
Transportation and terminals margin		16,290		23,517
Product sales revenues		2,670		5,177
Less: Product purchases		1,311		3,259
Product margin		1,359		1,918
Operating margin	$	17,649	$	25,435
Ammonia pipeline system:
Transportation and terminals revenues	$	2,701	$	4,721
Less: Operating expenses		1,402		2,004
Environmental expenses		320		243
Operating margin	$	979	$	2,474
Segment operating margin	$	81,292	$	92,120
Add: Allocated corporate depreciation costs		793		879
Total operating margin		82,085		92,999
Less: Depreciation and amortization		12,970		15,201
Affiliate general and administrative		15,126		15,027
Total operating profit	$	53,989	$	62,771

Note: Amounts may not sum to figures shown on the consolidated statement of income due to intersegment eliminations and allocated corporate depreciation costs.

MAGELLAN MIDSTREAM PARTNERS, L.P.

ALLOCATION OF NET INCOME

(In thousands, unless otherwise noted)

(Unaudited)

	Three Months Ended March 31,
	2005			2006
Net income	$	42,123		$	48,313
Direct charges to the general partner:
Reimbursable general and administrative costs		1,043			412
Previously indemnified environmental charges		466			600
Total direct charges to general partner		1,509			1,012
Income before direct charges to the general partner		43,632			49,325
General partner’s share of income		17.54	%		25.63	%
General partner’s allocated share of net income before direct charges		7,655			12,640
Direct charges to general partner		(1,509	)		(1,012	)
Net income allocated to general partner	$	6,146		$	11,628
Net income	$	42,123		$	48,313
Less: net income allocated to general partner		6,146			11,628
Net income allocated to limited partners	$	35,977		$	36,685

MAGELLAN MIDSTREAM PARTNERS, L.P.

DISTRIBUTABLE CASH FLOW

(Unaudited, in millions)

	Three Months Ended March 31,
	2005		2006
Net income	$	42.1	$	48.3
Add: Depreciation and amortization(1)		13.7		15.9
Equity-based compensation		2.0		1.5
Direct charges to general partner		1.5		1.0
Less: Maintenance capital (net of indemnified spending)		2.1		2.9
Other		0.5		0.5
Distributable cash flow(2)	$	56.7	$	63.3

⁽¹⁾ Depreciation and amortization includes debt placement fee amortization.

⁽²⁾ Distributable cash flow does not include fluctuations related to working capital or spending for which the partnership has received, or expects to receive, reimbursement through third party indemnifications.