Based on the progress of expansion projects already underway, the partnership currently expects growth capital spending of $240 million in 2011, $270 million in 2012 and an additional $65 million of spending in 2013 to complete these projects.   
The latest spending estimates include $245 million for the reversal and conversion of a portion of the partnership’s Houston-to-El Paso pipeline to crude oil service, which is $30 million lower than previously announced.   
The cost savings were achieved by utilizing existing assets to transport up to 58,000 b/d of refined petroleum products to El Paso versus 65,000 b/d previously, which is more than sufficient to handle projected volumes to the El Paso market.   Subject to receiving the necessary permits and regulatory approvals, the partnership now expects the reversed pipeline to be operational by early 2013.   
In addition, the partnership continues to make progress on its storage construction projects and has now placed into service all 4.25 million bbl of new crude oil storage in Cushing, Oklahoma and 0.7 million bbl of new gasoline and diesel fuel storage along its petroleum pipeline system in Tulsa, Oklahoma.   
The partnership also continues to evaluate more than $500 million of potential growth projects in earlier stages of development, which have been excluded from the spending estimates, such as an emerging project with Copano Energy LLC to transport condensate from the Eagle Ford Shale formation to Magellan’s terminal in Corpus Christi, Texas.   The partnership is in the final stages of negotiating a joint venture agreement with Copano to utilize existing pipelines and pipeline right-of-way in South Texas to minimize capital costs and time to completion. 
On Wednesday, Magellan posted record quarterly operating profit of $137.8 million for third quarter 2011 compared to $82.3 million for third quarter 2010. The partnership also generated record quarterly net income of $110.2 million for third quarter 2011 compared to $56.6 million for third quarter 2010.   
Magellan share price on the New York Stock Exchange was pegged at $63.24, with the 52-week range at $51.00-$65.92. The stock price has been on an overall uptrend in the past three months.