Magellan Midstream Partners LP (MMP) sale to One Oak (OKE)

[anitya]

The sale (acquisition) was approved on Thursday by MMP unit holders.  Unit holders are supposed to trigger a big gain because all the assets of MMP will be deemed to be sold to OKE.  I am trying to figure out if MMP unit holders that sell their units in the open market prior to the acquisition by OKE could be impacted by the acquisition related gain.  I am also looking for any MLP investment discussion groups (I know we do not dwell into that stuff here).  Thanks.

[Schroeder]

anitya,

If you find any relevant information or group please post it.  I owned both of these.  My Sept. Vanguard statement doesn't give a clear description of what my new cost basis will be or the tax implications of the transfer.

[mnfish]

09/25/2023 - Magellan unitholders received $25.00 in cash and 0.667 shares of ONEOK common stock for each outstanding Magellan common unit.

I sold earlier, before the deal closed. Should have waited and got a little more to help pay taxes.

My understanding is that -

100 shares of MMP = 67 shares of OKE @ $66.54 = $4,458.18 ($66.54 was the closing price for OKE on 9/25)
100 shares of MMP x $25 = $2,500
 
In essence you sold your 100sh MMP for $6,958.18 in cash

[anitya]

Oct 4, 2023 15:20:07 GMT Schroeder said:

anitya,

If you find any relevant information or group please post it.  I owned both of these.  My Sept. Vanguard statement doesn't give a clear description of what my new cost basis will be or the tax implications of the transfer.

Will do.   FYI - I transferred all shares to charity before the acquisition and thus not likely to spend a lot of time looking for online information and may just wait for the K-1 to show up.

[mnfish]

anitya , you posted - "FYI - I transferred all shares to charity before the acquisition and thus not likely to spend a lot of time looking for online information and may just wait for the K-1 to show up."

From Fidelity - Donating LLC & Limited Partners Shares - Link
In addition to these complicated and fact-specific matters related to UBIT, each donor should consult the donor’s tax and legal advisors with respect to the donor’s own tax treatment, including, but not limited to, limitations on deductions for portions of gain that would have been short-term capital gain to the donor if he or she were to sell the contributed partnership interest and the potential tax implications of contributing partnership interests with non-recourse debt.

Certain publicly-traded entities (such as master limited partnerships or “MLPs”) may also be “pass-through entities” taxed as partnerships. Although traded publicly on an exchange, those entities can present the same complex tax issues discussed above. Please call prior to making a contribution of equity in a MLP or any other publicly-traded “pass-through” entity.