March 30, 2020 [Seeking Alpha] – Magellan Midstream Partners (NYSE:MMP) anticipates a 25% decline in gasoline and aviation fuel demand in Q2 across its fuel distribution system, it said during its virtual analyst day today.
But the company is “in somewhat uncharted territory in trying to predict what refined product demand will do” as a result of the coronavirus, CEO Mike Mears said. Gasoline demand over the past seven days was down 10% from the same week of 2019, and diesel was effectively flat, the company said.
Although the company estimates a $95M-$180M impact to its prior 2020 distributable cash flow guidance of $1.2B, it expects to maintain 3% distribution growth this year and exit the year with leverage of 3.7x. Magellan notes its customers are primarily refiners with strong credit profiles.
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