Focus on organic projects
A major chunk of Magellan Midstream Partners’ (MMP) expansion capital spending since 2006 has been on organic projects.
Michael Mears, chair, president, and CEO of MMP, said during the partnership’s 2016 analyst day meet that he thought “70 to 80% of all acquisitions on a financial basis are not successful” in the market.
The company’s focus on organic growth has been reflected in its capital spending over the years. The above graph shows capital spent on organic growth and acquisitions since 2006.