First, we had not yet determined if we would keep our ammonia pipeline system, which is expected to generate close to $20 million of DCF this year. In addition, although we knew we were moving ahead with our Crane-to-Houston crude oil pipeline at the beginning of this year, the project's scope was still at its initial size of 135,000 barrels per day. Even though this project doesn't begin contributing until 2013, we do look out a few years in making distribution decisions, so we can be confident in the long-term sustainability to our investors.Now that we have decided to retain the ammonia pipeline system and have increased the size of our Crane-to-Houston project to 225,000 barrels per day, of fully committed capacity, we see our base business and growth projects generating enough cash flow to comfortably increase our distribution to a higher level. We have now increased our growth expectation accordingly, and are targeting distributions for full year 2012 that are 18% higher than 2011, with the goal of raising distributions, an additional 10% for 2013, as our growth projects are expected to come online and benefit future periods.
Magellan Midstream Partners LP Management Discusses Q2 2012 Results - Earnings Call Transcript
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