On May 4, pipeline operator Magellan Midstream Partners LP MMP announced strong first-quarter 2016 earnings. The outperformance stemmed from increased shipments on the Longhorn pipeline system of the partnership. Higher rates along with new contracts from storage operations also supported the results. The positives were offset partially by lower transportation and terminals’ margin. The Tulsa, OK-based oil distributor reported earnings per unit (EPU) of 87 cents (excluding commodity-related adjustments), surpassing both the Zacks Consensus Estimate and the year-ago quarter adjusted figure of 83 cents. Magellan Midstream Partners LP (MMP) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyTotal revenue of $520 million decreased 2% year over year. The top line, however, marginally beat the Zacks Consensus Estimate. Distributable Cash FlowMagellan Midstream’s distributable cash flow for the first quarter came in at $205.3 million, down 12% from the year-ago quarter. Cash DistributionOn Apr 21, 2016, Magellan Midstream announced that its board of directors approved an increase in the first-quarter cash distribution. The new distribution of 80.25 cents per unit represents a sequential hike of 2% and a year-over-year improvement of 12%. Segmental PerformanceRefined Products: Quarterly operating profits (before affiliate G&A and D&A expenses) were approximately $171 million, down 7% from the year-ago quarter. Lower transportation and terminals margin along with higher operating expenses led to the underperformance. Crude Oil: Operating margin was approximately $100.7 million, up 19% from the prior-year quarter. Increased shipments on the Longhorn pipeline system of Magellan Midstream along with new contracts on storage activities contributed to the segment’s earnings.Marine Storage: Operating margin was $27.9 million, almost in line with the year-ago quarter. Higher rates on storage activities supported the partnership’s unit.GuidanceThe partnership reiterated its annual distribution growth of 10% for 2016. On top of that, for 2017, Magellan Midstream continues to project at least 8% annual distribution growth. Distributable cash flows projection for this year has been increased by $10 million to $910 million by the partnership. Magellan guided second-quarter and full-year 2016 earnings per unit of 72 cents and $3.37, respectively. Zacks Rank & Other StocksMagellan Midstream currently carries a Zacks Rank #3 (Hold), implying that the partnership will perform in line with the broader U.S. equity market over the next one to three months.Some better-ranked players in the energy sector include PetroChina Co. Ltd. PTR, Pembina Pipeline Corporation PBA and Seadrill Partners LLC SDLP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MAGELLAN MDSTRM (MMP): Free Stock Analysis Report PETROCHINA ADR (PTR): Free Stock Analysis Report PEMBINA PIPELN (PBA): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research