Investopedia: Should Investors Sail With Magellan Midstream?

If low-risk income appeals to you, there aren't too many better businesses than pipeline and storage businesses. The time and capital it takes to get permitting and then build new networks keeps rampant competition at bay and pricing is often quite predictable. All of that said, investors may want to approach Magellan Midstream Partners (NYSE:MMP) with a little bit of caution today.

Solid Assets
There's definitely nothing wrong with the assets that Magellan Midstream operates. The company owns a network of more than 9,000 miles of pipeline that carries refined petroleum products up from the Gulf of Mexico into and through the Midwest. This pipeline network connects to more than 40% of the country's refinery capacity, and the company also owns around 50 petroleum terminals across the Midwest and eastern United States. Magellan also operates a 1,100-mile ammonia pipeline in the Midwest.

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