On September 25, 2023, a significant shift occurred in the energy infrastructure sector as ONEOK, Inc. (NYSE: OKE) finalized the acquisition of Magellan Midstream Partners, L.P. (NYSE: MMP). This merger means that common units of Magellan Midstream Partners are no longer publicly traded on the New York Stock Exchange. For those who previously held MMP units, it’s crucial to understand the next steps regarding tax information and reporting.
A key piece of information for former Magellan Midstream Partners unitholders is the Schedule K-1 form. You can expect to receive a final Schedule K-1, which is essential for tax filing purposes. These forms and accompanying materials are expected to be accessible online starting March 5, 2024, at www.taxpackagesupport.com/mmp. Physical copies will also be mailed shortly after this date. It’s important to note that receiving a Schedule K-1 does not automatically confirm past ownership of Magellan Midstream Partners common units.
If you have specific inquiries about your previously held Magellan Midstream Partners units, your primary point of contact should be the brokerage firm where you held your investment. They can provide details related to your account and the transaction.
For any questions specifically related to your MMP K-1 tax information, you can reach out to Tax Package Support directly. They can be contacted via phone at 800-230-1032 or online at www.taxpackagesupport.com/MMP.
Important Tax Information Regarding the Merger
It’s also vital for Magellan Midstream Partners unitholders to understand the tax implications of the merger with ONEOK. According to U.S. federal income tax regulations, the exchange of Magellan Midstream Partners units for ONEOK stock and cash is considered a taxable sale. For foreign unitholders, this transaction triggers a 10% withholding tax, which is the responsibility of the broker handling the transfer. This withholding is based on the total amount realized from the sale, which includes both the value of ONEOK shares received (calculated at $66.54 per share, ONEOK’s closing price on the merger date) and the cash consideration. Therefore, it is essential to consult with a tax advisor to fully understand the impact of the Magellan Midstream Partners acquisition on your individual tax situation.
