Magellan Midstream Partners LP set the stage for a big year in July 2009 when it acquired a 700-mile pipeline system in Texas.

CEO Don Wellendorf said the $350 million acquisition has generated a lot of money for the partnership.

That helped propel Magellan to the No. 4 spot in this year’s Oklahoma Inc. rankings. The partnership’s performance was bolstered by a 32.6 percent rise in revenue, good for second best among the state’s public companies.

“Really the story for Magellan … is that we’re a yield-related company,” Wellendorf said. “We’re attractive to investors because we provide a very strong upfront yield. Right now it’s between 5.5 and 6 percent.

“People are looking for distribution from us that provides that yield, that they can believe is solid and sound.”

Wellendorf said investing in Magellan is considered low risk because of its stable assets.

“We’re all about growing our cash flow, which allows us to grow our distributions to our unit holders.”

Magellan’s success in the past year was about more than its Longhorn pipeline acquisition, he said.

The Tulsa-based master limited partnership also completed a $72 million expansion of its Delaware marine terminal in August, adding 1 million barrels of storage capacity and a new truck loading rack.

Wellendorf said federal regulators have allowed Magellan to raise pipeline tariffs by 7.6 percent amid increased demand for storage.

Magellan also has seen good returns from $100 million in investments in ethanol infrastructure since 2006.

Wellendorf said Magellan is poised to become a key supplier of crude oil to refineries in the Houston area, thanks to its acquisition of 100 miles of pipeline from BP in September.

The $289 million deal included 7.8 million barrels of crude oil storage capacity in Cushing, where Magellan already is building 4.25 million barrels of storage.

Wellendorf said Magellan also has 75 million barrels of storage capacity for refined products, with an additional 8 million barrels of storage under construction.

“We’re a very big player in the transportation of refined products,” he said. “We’re also a very big player in the storage of crude oil and refined products.”

Wellendorf said increasing demand likely will head to higher storage rates and additional construction.

He said Magellan’s assets are the reason the partnership has increased its distribution every quarter this year, a trend that is expected to continue into the future.

“I’d say that’s a pretty attractive package,” Wellendorf said.