on May 4reported first-quarter 2016 net income of $207.1 million, or 91 cents per unit,compared to $183.6 million, or 81 cents per unit, in the year-ago quarter.
Excluding commodity-relatedadjustments, net income amounted to $199.1 million, or 87 cents per unit, whichexceeded Magellan's guidance of 70 cents as announced in early February. Magellansaid it beat its estimates because of higher revenues in refined products and crudeoil transportation.
The S&PCapital IQ consensus normalized EPS estimate for the first quarter was 86 cents.
Adjusted EBITDAfor the first quarter totaled $270.1 million, compared to $283.8 million in thesame period of 2015. The partnership posted first-quarter distributable cash flowof $205.3 million, compared to $233.1 million in the prior-year period. Magellanattributed the DCF decrease to lower contributions from commodity-related activities,spurred by the low-price environment and the timing of maintenance capital spending.
Total revenuefor the first quarter also declined, to $519.8 million from $530.3 million.
Magellan boostedits DCF guidance for 2016 by $10 million, to $910 million, which would result in1.2x coverage, to reflect "solid" financial results and higher-than-expectedcommodity prices. The partnership also forecast net income per limited partner unitof $3.37 for the year, excluding any future mark-to-market adjustments on commodity-relatedactivities.