TULSA, Okla: Magellan Midstream Partners, L.P. (NYSE: MMP) today reported net income of $287.6 million for first quarter 2020 compared to $207.7 million for first quarter 2019. The increase in first quarter 2020 net income was primarily driven by mark-to-market (MTM) adjustments for hedge positions related to the partnership's commodity-related activities.
Diluted net income per common unit was $1.26 in first quarter 2020 and 91 cents in first quarter 2019. Diluted net income per unit excluding MTM commodity-related pricing adjustments, a non-generally accepted accounting principles (non-GAAP) financial measure, of $1.28 for first quarter 2020 was higher than the $1.08 guidance previously provided by management primarily as a result of lower operating expenses, higher gas liquids blending margins as well as a $12.9 million, or 6-cent per unit, gain on the sale of a portion of the partnership's investment in Saddlehorn Pipeline Company, LLC during Feb. 2020.
Distributable cash flow (DCF), a non-GAAP financial measure that represents the amount of cash generated during the period that is available to pay distributions, was $306.5 million for first quarter 2020 compared to $318.0 million for first quarter 2019.
"While we are pleased with our solid financial results for the first quarter of 2020, we remain focused on managing Magellan's business through the current challenging environment. Our employees have ensured Magellan's essential operations remain fully functional to provide continuity of fuel supply to the communities we serve, and we thank them for their professionalism and dedication during this difficult time," said Michael Mears, chief executive officer. "Although we expect near-term financial impacts from the significantly lower commodity prices and unprecedented reductions in refined products demand, Magellan's disciplined management approach, resilient business model and financial strength position us well to respond not only to the short-term industry challenges but to successfully manage our company for the long term."
Beginning in first quarter 2020, the partnership reorganized its reporting segments to reflect changes to its business in conjunction with the sale of three of its marine terminals during March 2020. The partnership's Galena Park, Texas marine terminal and Pasadena, Texas joint venture marine terminal are now shown in the Refined products segment and its Corpus Christi, Texas marine terminal is now included with the Crude oil segment based on the primary products handled at these facilities. Historical financial results have been restated to conform to the new segment presentation, with historical contributions from the divested terminals also included in the Refined products segment.
An analysis by segment comparing first...