The storage terminal operating margin totaled $48 million, an all-time high and $8.1 million improvement over the same three months in 2011. Magellan’s added crude oil storage capacity at nearby Cushing, coupled with higher tariff rates at marine terminals, helped drive the record margin.

Overall, Magellan’s net income was $93.5 million for the quarter ending March 31.
Distributable cash flow, much of which is paid back to unitholders, increased to $125.7 million, $8 million better than 2011’s first three months.

CEO Mike Mears said that the growing crude oil pipeline and storage margins offset reduced gasoline demand. He added that future crude oil terminal and transport ambitions looked strong.

“We are excited about our current growth opportunities,” Mears said in a statement, “most notably our recently expanded project to reserve and convert our Crane (Texas) to Houston pipeline to crude oil service,, which will create a foundation for Magellan’s growth for years to come.”

The overall petroleum pipeline margin was $125.4 million, a decline of $1 million from the same period in 2011. Revenues grew on the back of higher rates and shipments, but expenses eliminated those benefits, according to the report.

Magellan management added about $10 million to its planned distribution total of $490 million for this year. The company also plans to spend about $680 million on growth projects through 2013, including $375 million on the Crane-to-Houston reversal and conversion to crude oil transport.