Financial Performance - Total revenues for Q1 2025 were $192.543 million, an increase of 6.3% compared to $180.830 million in Q1 2024[17] - Net loss for Q1 2025 was $1.033 million, compared to a net income of $3.273 million in Q1 2024, representing a decline of 131.6%[17] - Operating income decreased to $14.402 million in Q1 2025 from $17.895 million in Q1 2024, a decrease of 19.1%[17] - For the three months ended March 31, 2025, total revenue was $169,539 thousand, a decrease of 10.5% compared to $189,830 thousand for the same period in 2024[31] - For the three months ended March 31, 2025, total consolidated revenues were $192,543 thousand, a decrease from $197,279 thousand in the same period of 2024, representing a decline of approximately 3.9%[96] Segment Performance - The terminalling and storage segment generated revenue of $21,549 thousand, down 4.3% from $22,517 thousand in the prior year[31] - The transportation segment reported revenue of $52,985 thousand, a decline of 9.5% from $58,307 thousand in the previous year[31] - Sulfur services segment revenue increased significantly to $48,704 thousand, up 44.6% from $33,681 thousand in the same quarter of 2024[31] - Specialty products segment revenue rose to $69,305 thousand, an increase of 4.5% compared to $66,325 thousand in the prior year[31] - The Terminalling and Storage segment generated revenues of $23,414 thousand, while the Transportation segment generated $57,475 thousand, and the Sulfur Services segment generated $48,704 thousand for the same period[105] Cash Flow and Assets - Cash at the end of Q1 2025 was $52 million, a slight decrease from $55 million at the end of Q4 2024[15] - Cash flows from operating activities were negative at $(6.019) million in Q1 2025, compared to positive cash flows of $10.109 million in Q1 2024[24] - Total current assets decreased to $129.646 million in Q1 2025 from $130.479 million in Q4 2024[15] - Total liabilities decreased to $605.038 million in Q1 2025 from $608.948 million in Q4 2024[15] - As of March 31, 2025, total long-term debt was $451,449 thousand, an increase from $437,635 thousand at December 31, 2024[41] Expenses and Liabilities - The company incurred interest expense of $14.107 million in Q1 2025, compared to $13.842 million in Q1 2024[17] - Operating expenses increased to $27,565 thousand in 2025 from $26,423 thousand in 2024, an increase of approximately 4.3%[97] - The Partnership's future minimum lease obligations total $79,471,000 as of March 31, 2025, with the first year obligation being $24,969,000[47] - As of March 31, 2025, total operating lease liabilities amounted to $68,998,000, up from $67,522,000 as of December 31, 2024, reflecting a 2.2% increase[47] Equity and Compensation - Weighted average limited partner units for Q1 2025 were 38,882,982, compared to 38,828,737 in Q1 2024[17] - The total unit-based compensation expense for the three months ended March 31, 2025, was $836,000, compared to a negative expense of $(120,000) in the same period of 2024, indicating a shift in compensation strategy[57] - The Partnership issued 54,000 Time-Based Restricted Units (TBRUs) during the three months ended March 31, 2025, with a grant-date fair value of $3.62 per unit[72] Tax and Deferred Tax - The effective income tax rate for the Taxable Subsidiary was 32.86% for the three months ended March 31, 2025, compared to 15.73% for the same period in 2024[118] - The provision for income taxes for the three months ended March 31, 2025, was $1,117,000, an increase from $796,000 in the same period in 2024[116] - A net deferred tax asset of $10,160 million existed at March 31, 2025, compared to $9,946 million at December 31, 2024[122] Corporate Governance and Management - Martin Resource Management Corporation owns approximately 16.3% of the Partnership's outstanding common limited partner units, maintaining a significant stake in the company[50] - The Partnership reimbursed Martin Resource Management Corporation $3,384,000 and $3,377,000 for indirect expenses for the three months ended March 31, 2025, and 2024, respectively[78] - The Conflicts Committee approved an annual reimbursement amount for indirect expenses of $13,536,000 for the year 2025[78] Risk Management - The Partnership is exposed to commodity risk and interest rate risk, with established hedging policies in place[208] - The Partnership had no outstanding hedging positions as of March 31, 2025, indicating a focus on managing commodity price fluctuations[209] - A 100 basis point increase in interest rates would increase interest expense by approximately $0.7 million annually due to unhedged floating rate debt[210]

[First Quarter 2025 Financial Results Overview](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Martin Midstream Partners reported a net loss of $1.0 million and decreased Adjusted EBITDA in Q1 2025, yet maintained full-year guidance and declared a $0.005 dividend Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) (million) | $(1.0) | $3.3 | | Adjusted EBITDA (million) | $27.8 | $30.4 | | Quarterly Cash Dividend ($/unit) | $0.005 / unit | N/A | - The Partnership maintained its full-year adjusted EBITDA guidance of **$109.1 million**[4](index=4&type=chunk) - The Q1 2025 net loss includes **$0.8 million** of costs associated with the termination of the merger agreement with Martin Resource Management Corporation[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted a "good start" to 2025, with strong Sulfur Services and propane, but expressed caution on geopolitical risks and noted higher expenses in Terminalling and Storage - Management is cautious about geopolitical uncertainty and trade tensions, which could indirectly impact the business, particularly the transportation segment, if proposed tariffs slow the U.S. economy[3](index=3&type=chunk) - The adjusted leverage ratio increased from **3.96x** at year-end 2024 to **4.21x** as of March 31, 2025, an expected increase due to semi-annual interest payments on outstanding notes[3](index=3&type=chunk) - Capital expenditures for the quarter included **$0.9 million** for growth and **$4.7 million** for maintenance[3](index=3&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) [Segment Financial Summary](index=2&type=section&id=Segment%20Financial%20Summary) Sulfur Services saw significant Adjusted EBITDA growth in Q1 2025, while Transportation, Terminalling and Storage, and Specialty Products segments experienced declines Segment Operating Income and Adjusted EBITDA (in millions) | Business Segment | Operating Income Q1 2025 (million) | Operating Income Q1 2024 (million) | Adjusted EBITDA Q1 2025 (million) | Adjusted EBITDA Q1 2024 (million) | | :--- | :--- | :--- | :--- | :--- | | Transportation | $5.5 | $9.8 | $8.0 | $13.2 | | Terminalling and Storage | $2.1 | $3.7 | $7.7 | $9.0 | | Sulfur Services | $7.7 | $3.7 | $11.5 | $6.7 | | Specialty Products | $3.7 | $4.5 | $4.5 | $5.4 | [Transportation](index=2&type=section&id=Transportation) The Transportation segment's Adjusted EBITDA decreased by **$5.2 million**, driven by lower land division EBITDA and reduced marine utilization and day rates - Adjusted EBITDA for the Transportation segment decreased by **$5.2 million** compared to Q1 2024[5](index=5&type=chunk) [Terminalling and Storage](index=2&type=section&id=Terminalling%20and%20Storage) The Terminalling and Storage segment's Adjusted EBITDA decreased by **$1.3 million**, primarily due to increased operating expenses and lower throughput revenue - Adjusted EBITDA for the Terminalling and Storage segment decreased by **$1.3 million** compared to Q1 2024, mainly due to higher operating expenses[6](index=6&type=chunk) [Sulfur Services](index=2&type=section&id=Sulfur%20Services) The Sulfur Services segment's Adjusted EBITDA increased by **$4.8 million**, primarily driven by higher volumes and margins in the fertilizer division - Adjusted EBITDA for the Sulfur Services segment increased by **$4.8 million**, with the fertilizer division contributing a **$3.7 million** increase[7](index=7&type=chunk) [Specialty Products](index=2&type=section&id=Specialty%20Products) The Specialty Products segment's Adjusted EBITDA decreased by **$0.9 million**, primarily due to a **$1.2 million** decline in the grease division, partially offset by propane - Adjusted EBITDA for the Specialty Products segment decreased by **$0.9 million**, primarily due to a **$1.2 million** decline in the grease division[8](index=8&type=chunk) [Financial Statements and Key Metrics](index=3&type=section&id=Financial%20Statements%20and%20Key%20Metrics) [Consolidated Financial Results](index=3&type=section&id=Consolidated%20Financial%20Results) Q1 2025 consolidated results show a **$1.0 million** net loss and negative operating cash flow, contrasting with Q1 2024, though distributable cash flow increased Q1 2025 vs Q1 2024 Summary of Operations (in millions, except per unit amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Income (Loss) (million) | $(1.0) | $3.3 | | Net Income (Loss) Per Unit ($/unit) | $(0.03) | $0.08 | | Adjusted EBITDA (million) | $27.8 | $30.4 | | Net Cash Provided by (Used in) Operating Activities (million) | $(6.0) | $10.1 | | Distributable Cash Flow (million) | $9.1 | $5.6 | | Revenues (million) | $192.5 | $180.8 | [Capitalization and Liquidity](index=4&type=section&id=Capitalization%20and%20Liquidity) Total debt increased to **$466.1 million** and available liquidity decreased to **$23.4 million** as of March 31, 2025, with the leverage ratio rising to **4.21x**, yet remaining covenant compliant Capitalization Summary (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt Outstanding (million) | $466.1 | $453.6 | | Revolving Credit Facility - Available Liquidity (million) | $23.4 | $80.7 | | Total Adjusted Leverage Ratio (x) | 4.21x | 3.96x | | Interest Coverage Ratio (x) | 2.07x | 2.14x | - Effective March 31, 2025, the maximum total leverage ratio covenant under the credit facility stepped down from **4.75x** to **4.50x**[18](index=18&type=chunk) [Detailed Financial Statements](index=8&type=section&id=Detailed%20Financial%20Statements) Detailed financial statements reveal a slight decrease in total assets and liabilities, a net loss from operations, and cash used in operating activities due to working capital changes [Balance Sheet](index=8&type=section&id=Balance%20Sheet) As of March 31, 2025, total assets decreased slightly to **$533.4 million**, total liabilities to **$605.0 million**, resulting in a partners' deficit of **$71.6 million** Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets (thousands) | $129,646 | $130,479 | | Property, plant and equipment, net (thousands) | $299,939 | $305,450 | | **Total assets (thousands)** | **$533,410** | **$538,509** | | Total current liabilities (thousands) | $96,236 | $115,501 | | Long-term debt, net (thousands) | $451,449 | $437,635 | | **Total liabilities (thousands)** | **$605,038** | **$608,948** | | **Partners' capital (deficit) (thousands)** | **$(71,628)** | **$(70,439)** | [Statement of Operations](index=9&type=section&id=Statement%20of%20Operations) Total revenues increased to **$192.5 million** in Q1 2025, but higher costs and interest expense led to a **$1.0 million** net loss, a decline from Q1 2024 net income Statement of Operations Summary (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues (thousands) | $192,543 | $180,830 | | Total costs and expenses (thousands) | $178,620 | $163,143 | | Operating income (thousands) | $14,402 | $17,895 | | Interest expense, net (thousands) | $(14,107) | $(13,842) | | **Net income (loss) (thousands)** | **$(1,033)** | **$3,273** | | Net income (loss) per unit - basic ($/unit) | $(0.03) | $0.08 | [Statement of Cash Flows](index=12&type=section&id=Statement%20of%20Cash%20Flows) Q1 2025 saw **$6.0 million** net cash used in operating activities, a reversal from Q1 2024, with decreased investing cash use and increased financing cash from debt proceeds Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities (thousands) | $(6,019) | $10,109 | | Net cash used in investing activities (thousands) | $(6,218) | $(17,395) | | Net cash provided by (used in) financing activities (thousands) | $12,234 | $7,286 | | **Net increase in cash (thousands)** | **$(3)** | **$0** | [Shareholder Information](index=5&type=section&id=Shareholder%20Information) [Quarterly Cash Distribution](index=5&type=section&id=Quarterly%20Cash%20Distribution) A quarterly cash distribution of **$0.005 per unit** for Q1 2025 has been declared, payable on May 15, 2025, to unitholders of record on May 8, 2025 - A quarterly cash distribution of **$0.005 per unit** was declared for the quarter ended March 31, 2025[20](index=20&type=chunk) - The distribution is payable on May 15, 2025, to unitholders of record on May 8, 2025[20](index=20&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=6&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The Partnership utilizes non-GAAP measures like EBITDA, Adjusted EBITDA, and Distributable Cash Flow to evaluate asset performance, cash generation, and industry comparisons - The company uses non-GAAP measures including EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow to analyze performance[24](index=24&type=chunk) - Adjusted EBITDA is defined as EBITDA excluding unit-based compensation, gains/losses on asset dispositions, impairment, and transaction costs[26](index=26&type=chunk) - Distributable Cash Flow is used as an indicator of the company's ability to sustain or increase quarterly distributions to unitholders[29](index=29&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=3&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) The reconciliation from a **$1.0 million** net loss to **$27.8 million** Adjusted EBITDA for Q1 2025 involves adjustments for interest, taxes, depreciation, amortization, and transaction expenses Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) (thousands) | $ (1,033) | $ 3,273 | | Interest expense (thousands) | 14,107 | 13,842 | | Income tax expense (thousands) | 1,117 | 796 | | Depreciation and amortization (thousands) | 12,816 | 12,649 | | **EBITDA (thousands)** | **27,007** | **30,560** | | Adjustments (Transaction expenses, etc.) (thousands) | 821 | (154) | | **Adjusted EBITDA (thousands)** | **$ 27,828** | **$ 30,406** | [Reconciliation of Net Cash Provided by Operating Activities](index=16&type=section&id=Reconciliation%20of%20Net%20Cash%20Provided%20by%20Operating%20Activities) Starting with **$6.0 million** negative operating cash flow, this reconciliation details the derivation of **$27.8 million** Adjusted EBITDA, **$9.1 million** DCF, and **$8.2 million** Adjusted Free Cash Flow for Q1 2025 Reconciliation to DCF and Adjusted Free Cash Flow (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities (thousands) | $ (6,019) | $ 10,109 | | ... Adjustments to reach Adjusted EBITDA (thousands) | 33,847 | 20,297 | | **Adjusted EBITDA (thousands)** | **27,828** | **30,406** | | ... Adjustments to reach DCF (thousands) | (18,740) | (24,760) | | **Distributable Cash Flow (thousands)** | **9,088** | **5,646** | | Expansion capital expenditures (thousands) | (929) | (6,231) | | **Adjusted Free Cash Flow (thousands)** | **$ 8,155** | **$ (585)** |

Group 1 - Caspian Capital L.P. supports Martin Midstream Partners L.P.'s decision to terminate its merger agreement with Martin Resource Management Corporation, indicating confidence in MMLP's standalone value creation for unitholders [1] - Caspian believes that the potential valuation of MMLP exceeds the purchase price offered in the proposed merger, highlighting the expected benefits for common unitholders from upcoming developments [1] - The company has ceased its efforts to acquire MMLP and ended collaboration with Nut Tree Capital Management L.P., focusing instead on monitoring MMLP's execution and capital allocation [1] Group 2 - Caspian Capital LP was founded in 1997 and employs an absolute return strategy, managing $4.7 billion in assets, with a focus on performing, stressed, distressed corporate credit, and value equities [2]

Financial Agreements and Amendments - The company entered into a credit facility amendment on February 13, 2025, adjusting interest coverage and first lien leverage ratios for fiscal quarters ending March 31, June 30, and September 30, 2025[29]. - As of December 31, 2024, the company had a weighted-average interest rate of 8.18% on its credit facility, with a potential $0.5 million increase in interest expense from a 100 basis point rate increase[390]. - The estimated fair value of the 2028 Notes was $436.2 million, with a potential $9.1 million decrease in fair value from a 100 basis point increase in interest rates[391]. Employee Compensation and Plans - The 2025 Phantom Unit Plan was approved on February 11, 2025, allowing for awards of phantom units and appreciation rights to employees and directors, with potential cash payments[29]. Operational Overview - The company has strategically located assets along the U.S. Gulf Coast, generating significant cash flow from services to the oil refining industry[30]. - The company operates nine terminalling facilities, enhancing its integrated services in storage, handling, and transportation of petroleum products[37]. - The underground NGL storage terminal has a capacity of 2.3 million barrels, supporting NGL marketing efforts[49]. - A significant portion of cash flow is generated from fee-based contracts, which include reservation charges that reduce cash flow volatility[33]. - The company aims to expand its customer base and service offerings to drive organic growth in revenues and cash flow[31]. - The company has established long-term relationships with suppliers and customers, enhancing its reputation as a reliable service provider[32]. - The company owns asphalt terminals in Texas and Nebraska, dedicated to a subsidiary of Martin Resource Management Corporation under throughput agreements[40]. - The company competes effectively due to the strategic location of its terminals, integrated transportation services, and the quality of its specialized services[52]. - The company operates a fleet of approximately 600 trucks and 1,275 tank trailers for land transportation, serving major customers in the energy and petrochemical sectors[54]. - The marine transportation segment utilizes a fleet that includes 5 inland tank barges with capacities ranging from under 20,000 barrels to 31,000 barrels, and 1 offshore tank barge with a capacity of 59,000 barrels[59]. - The sulfur forming facility in Beaumont, Texas has a daily processing capacity of 5,500 metric tons of molten sulfur, converting it into solid form for agricultural markets[66]. - The company produces approximately 400 tons per day of ammonium sulfate, primarily serving agricultural and industrial markets[69]. - The NGL storage terminal in Arcadia, Louisiana has a capacity of 2,300,000 barrels, supporting the company's NGL operations[77]. - The company maintains long-term relationships with customers through fee-based transportation agreements, ensuring stable revenue streams[56]. - The marine transportation agreement with Martin Resource Management Corporation is on a spot contract basis, automatically renewing annually unless terminated[60]. Financial Relationships with Martin Resource Management Corporation - Martin Resource Management Corporation owned approximately 15.7% of the outstanding limited partnership units as of December 31, 2024[80]. - The company reimbursed Martin Resource Management Corporation for $175.8 million and $165.6 million of direct costs and expenses for the years ended December 31, 2024 and 2023, respectively[82]. - Purchases from Martin Resource Management Corporation accounted for approximately 27% and 23% of total costs and expenses for the years ended December 31, 2024 and 2023, respectively[86]. - Sales to Martin Resource Management Corporation accounted for approximately 15% and 14% of total revenues for the years ended December 31, 2024 and 2023, respectively[87]. Insurance and Liability - The company's property program provides $40.0 million per occurrence and annual aggregate for named windstorm events, including business interruption coverage[89]. - The deductible for onshore physical damage resulting from named windstorms is 5% of the total value of affected properties, with minimum deductible ranges from $1.0 million to $5.0 million[89]. - The company has various pollution liability policies, which provide coverages ranging from remediation of property to third-party liability[91]. - The company’s insurance covers up to $1.0 billion of liability per accident or occurrence for marine claims[93]. Regulatory and Environmental Compliance - The company’s operations are subject to various federal, state, and local laws and regulations governing environmental matters, which could impose significant liabilities[95]. - The company is subject to complex federal, state, and local environmental laws that can impair operations and may require substantial capital expenditures for compliance[96]. - Climate change may adversely affect operations due to severe weather, increased operational costs, and potential insurance coverage issues[105]. - The company is in substantial compliance with the Clean Water Act, but future regulatory changes could increase costs and delays[106]. - The Oil Pollution Act imposes liability for oil spills, and any legislative changes could materially affect operations[107]. - The company is subject to stringent safety regulations and believes it is in substantial compliance with current safety requirements[108]. Corporate Structure and Support - The company relies on Martin Resource Management Corporation for corporate support, which has approximately 1,679 employees[115]. Commodity Price Management - The company uses derivatives to manage commodity price fluctuations, but abnormal price volatility could influence operating income[386][387].

Financial Performance - For the fourth quarter of 2024, Martin Midstream Partners reported Adjusted EBITDA of $23.3 million, which was approximately $5.5 million below the annual guidance level[3]. - For the full year 2024, Martin Midstream Partners reported a net loss of $5.2 million, which included $3.7 million in costs related to the termination of the Merger Agreement[4]. - The net loss for the year ended December 31, 2024, was $5,207 thousand, compared to a net loss of $4,549 thousand in 2023, indicating an increase in losses of approximately 14.5%[57]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $110.6 million, compared to $102.6 million for the same period in 2023, reflecting an increase of approximately 1.0%[26]. - Adjusted EBITDA for the year ended December 31, 2024, was $110,605 thousand, up from $102,615 thousand in 2023, reflecting an increase of 7.7%[65]. - The company reported operating income of $57.295 million for 2024, down from $66.724 million in 2023, highlighting a decline in operational efficiency[48]. - Cash provided by operating activities was $48,351 thousand in 2024, a significant decrease from $137,468 thousand in 2023[57]. - Distributable Cash Flow decreased to $24,119 thousand in 2024 from $32,775 thousand in 2023, a decline of 26.3%[66]. - Adjusted Free Cash Flow for the year ended December 31, 2024, was $(1,321) thousand, down from $21,732 thousand in 2023[66]. Debt and Liquidity - The total debt outstanding as of December 31, 2024, was approximately $453.6 million, with liquidity of about $80.7 million under the revolving credit facility[3]. - Total debt outstanding as of December 31, 2024, was $453.6 million, up from $442.5 million as of December 31, 2023[28]. - The total adjusted leverage ratio increased to 3.96x as of December 31, 2024, compared to 3.75x a year earlier[28]. - The partnership's available liquidity from the revolving credit facility decreased to $80.7 million as of December 31, 2024, from $109.0 million as of December 31, 2023[28]. - The partnership was in compliance with all debt covenants as of December 31, 2024, and December 31, 2023[28]. Segment Performance - The Transportation segment's Adjusted EBITDA for Q4 2024 was $6.5 million, significantly lower than the guidance of $11.2 million, primarily due to lower utilization of heated barges and impacts from Hurricane Milton[3][11]. - The Sulfur Services segment outperformed expectations with Adjusted EBITDA of $9.4 million, exceeding guidance by approximately $1.0 million, driven by a 14% increase in sulfur volumes compared to internal forecasts[3][4]. - Specialty Products Adjusted EBITDA increased by $12.5 million, while Credit Adjusted EBITDA declined by $2.6 million due to the exit from the butane optimization business[21]. - Revenues for the Terminalling and Storage Segment increased by 1% to $96,555 thousand in 2024 from $95,459 thousand in 2023[59]. - Operating income for the Terminalling and Storage Segment decreased by 24% to $11,098 thousand in 2024 from $14,532 thousand in 2023[59]. - Total revenues for the Sulfur Services Segment decreased by 8% to $129,772 thousand in 2024 from $140,995 thousand in 2023[62]. - Operating income for the Sulfur Services Segment increased by 6% to $18,531 thousand in 2024 from $17,412 thousand in 2023[62]. - Specialty Products Segment revenues decreased by 24% to $264,945 thousand in 2024 from $346,863 thousand in 2023[63]. - The total specialty products volumes decreased by 34% to 2,653 Bbls in 2024 from 4,048 Bbls in 2023[63]. Capital Expenditures and Guidance - Capital expenditures for Q4 2024 totaled $9.5 million, with $2.9 million allocated to growth projects and $6.6 million for maintenance and turnaround costs[3]. - The company has released 2025 Adjusted EBITDA guidance of $109.1 million, with anticipated capital expenditures of $34.9 million[5]. - The Transportation segment is projected to generate $35.4 million of Adjusted EBITDA in 2025, while the Sulfur Services segment is expected to contribute $31.9 million[5]. - Adjusted Free Cash Flow for 2025 is projected to be approximately $18.8 million[5]. Other Financial Metrics - The company made cash distributions of $795 thousand in both 2024 and 2023, indicating stability in cash distribution policy[57]. - Interest expense for the year ended December 31, 2024, was $57,706 thousand, slightly down from $60,290 thousand in 2023[65]. - The company recognized a loss of $624 thousand from its equity investment in DSM Semichem LLC for the year ended December 31, 2024[65]. - Unallocated selling, general, and administrative expenses decreased by $0.2 million, attributed to lower professional fees and reduced overhead allocation[22]. - Indirect selling, general and administrative expenses increased by 22% from $16,030 thousand in 2023 to $19,556 thousand in 2024[64]. - The company issued 86,280 time-based restricted units in 2024, up from 64,056 in 2023, reflecting an increase in equity compensation[57]. Forward-Looking Statements - Forward-looking statements indicate potential volatility in commodity prices and uncertainties regarding future cash flows and operations[33].

Core Viewpoint - Nut Tree Capital Management and Caspian Capital, holding approximately 13.6% of Martin Midstream Partners' outstanding common units, are urging unitholders to vote against the proposed merger with Martin Midstream Resource Corporation at a price of $4.02 per common unit, claiming it benefits Ruben Martin and MRMC at the expense of other unitholders [1]. Group 1 - Nut Tree and Caspian have sent a letter to MMLP's common unitholders [1]. - The merger vote is scheduled for December 30, 2024, at 10:00 AM Central time [1]. - The proposed sale price of $4.02 per common unit is being contested by the two firms [1]. Group 2 - Nut Tree Capital Management was founded in 2015 and focuses on distressed credit and value equities, managing $4 billion in assets [3]. - Caspian Capital LP, established in 1997, specializes in stressed and distressed corporate credit and value equities, overseeing $4.6 billion in assets [2].

Core Viewpoint - Johnson Fistel, LLP is investigating potential breaches of fiduciary duties by the board members of Martin Midstream Partners L.P. in relation to a proposed merger with Martin Resource Management [1]. Group 1: Merger Details - On October 3, 2024, Martin Midstream Partners L.P. announced a definitive agreement for Martin Resource Management Corporation to acquire all outstanding common units not already owned by it and its subsidiaries at a price of $4.02 per share in an all-cash transaction [3]. - Nut Tree Capital Management and Caspian Capital, holding approximately 13.6% of the outstanding common units, have submitted proxy materials opposing the merger at the proposed price, which will be voted on in an upcoming meeting [4]. Group 2: Investigation and Shareholder Rights - The investigation by Johnson Fistel, LLP aims to determine if the board members acted in the best interests of shareholders regarding the merger terms [1]. - Shareholders who believe the buyout price is too low or wish to learn more about the investigation are encouraged to contact the lead analyst [2].

Group 1 - Halper Sadeh LLC is investigating potential violations of federal securities laws and breaches of fiduciary duties related to Martin Midstream Partners L.P.'s sale to Martin Resource Management Corporation for $4.02 per common unit [1] - The firm is also looking into Lumos Pharma, Inc.'s sale to Double Point Ventures LLC for $4.25 per share in cash, along with a non-transferable, unsecured Contingent Value Right per share [1] - The firm may seek increased consideration for shareholders and additional disclosures regarding the proposed transactions [2] Group 2 - Halper Sadeh LLC operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [2] - The firm represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [2]

Financial Performance - Total revenues for the three months ended September 30, 2024, were $170,934, a decrease of 3.3% compared to $176,697 for the same period in 2023[10] - The company reported a net loss of $3,239 for the three months ended September 30, 2024, compared to a net loss of $1,036 for the same period in 2023[10] - Operating income for the nine months ended September 30, 2024, was $50,473, an increase from $49,538 for the same period in 2023[10] - The net income for the nine months ended September 30, 2024, was $3,734 thousand, compared to a net loss of $(5,066) thousand for the same period in 2023[18] - The company reported a decrease in revenues for the three and nine months ended September 30, 2024, compared to the same periods in 2023, although specific figures were not provided[156] - Operating revenues for the three months ended September 30, 2024, were $176,495 thousand, a decrease of 2.4% compared to $181,811 thousand for the same period in 2023[157] - For the nine months ended September 30, 2024, total revenues were $553,228 thousand, a decrease of 13.2% from $637,154 thousand in the same period of 2023[160] Debt and Liabilities - Long-term debt increased to $469,269 as of September 30, 2024, compared to $421,173 as of December 31, 2023, reflecting a rise of 11.4%[9] - The company’s total liabilities increased to $616,099 as of September 30, 2024, from $573,999 as of December 31, 2023, an increase of 7.3%[9] - Total contractual cash obligations as of September 30, 2024, amounted to $712.1 million, with $67.1 million due within one year[197] - The company had $86.5 million outstanding under its $150.0 million credit facility, leaving $54.4 million available for future borrowings as of September 30, 2024[198] - The company is in compliance with all debt covenants as of September 30, 2024, and anticipates remaining compliant for the next twelve months[202] Cash Flow and Liquidity - The company reported net cash provided by operating activities of $6,184 thousand for the nine months ended September 30, 2024, a significant decrease from $106,065 thousand in the prior year[18] - Net cash provided by operating activities decreased by $99.9 million, a 94% decline, primarily due to a $101.1 million unfavorable variance in cash flows associated with changes in working capital[195] - Net cash used in investing activities increased by $27.2 million, driven by higher capital expenditures and plant turnaround costs, which rose by $16.0 million[196] - Net cash provided by financing activities increased by $127.0 million, primarily due to a decrease in long-term debt borrowings of $293.4 million[196] - The company expects to meet operating expenses and service its indebtedness primarily through cash flows generated from operations and borrowings under its credit facility[202] Operating Expenses - Operating expenses for the three months ended September 30, 2024, were $62,363, a decrease from $64,375 for the same period in 2023[10] - Operating expenses for the nine months ended September 30, 2024, increased to $45,414 thousand from $43,318 thousand in the same period of 2023, a rise of 4.8%[170] - Selling, general, and administrative expenses for the three months ended September 30, 2024, totaled $12,215,000, up from $8,477,000 in the prior year[94] - The partnership's operating expenses for transportation increased to $19,257,000 in the three months ended September 30, 2024, compared to $18,531,000 in the same period of 2023[93] Revenue Segments - Throughput and storage revenue for the Terminalling and Storage segment was $22,562,000 in Q3 2024, up from $22,202,000 in Q3 2023, representing a growth of 1.6%[26] - Land transportation revenue was $40,514,000 in Q3 2024, slightly down from $40,965,000 in Q3 2023, indicating a decrease of 1.1%[26] - Inland marine transportation revenue increased to $14,146,000 in Q3 2024 from $12,658,000 in Q3 2023, reflecting a growth of 11.7%[26] - Sulfur product sales reached $8,585,000 in Q3 2024, compared to $8,453,000 in Q3 2023, showing an increase of 1.6%[26] - Fertilizer product sales decreased significantly to $12,598,000 in Q3 2024 from $20,766,000 in Q3 2023, a decline of 39.4%[26] - Natural gas liquids product sales rose to $35,940,000 in Q3 2024 from $31,225,000 in Q3 2023, marking an increase of 15.0%[26] Capital Expenditures - Total capital expenditures and plant turnaround costs for the three months ended September 30, 2024, amounted to $12,535,000[96] - Capital expenditures and plant turnaround costs for the nine months ended September 30, 2024, were $43,132, compared to $28,081 for the same period in 2023, indicating a significant increase of approximately 53.6%[98][99] - The company expects to fund approximately $27.0 million in capital expenditures for the electronic level sulfuric acid joint venture, with $26.4 million already funded as of September 30, 2024[125] Related Party Transactions - Related party transactions accounted for approximately 31% of total costs and expenses for the three months ended September 30, 2024, compared to 29% in 2023[135] - Sales to Martin Resource Management Corporation represented approximately 15% of total revenues for both the three months ended September 30, 2024, and 2023[136] - The company reimbursed Martin Resource Management Corporation $46.2 million for direct costs for the three months ended September 30, 2024, compared to $43.2 million in 2023, reflecting a 6.9% increase[132] Environmental and Legal Matters - The company is currently addressing an environmental spill incident and has recorded a deductible expense of $1.5 million related to insurance claims[207] - The partnership is involved in ongoing litigation related to a customer in its lubricants packaging business, with a trial expected in the second half of 2025[102] - No material environmental costs were incurred during the nine months ended September 30, 2023[208] Mergers and Acquisitions - Martin Resource Management Corporation proposed to acquire all outstanding common units of the Partnership not already owned, with a merger agreement signed on October 3, 2024[115] - Each public common unit will be converted into the right to receive $4.02 in cash as part of the merger agreement[116] Miscellaneous - The effective income tax rate for the taxable subsidiary for the three months ended September 30, 2024, was 33.36%, up from 23.96% in the same period of 2023[109] - The partnership completed its exit from the butane optimization business in Q2 2023, transitioning to a fee-based butane logistics model, which is expected to reduce commodity risk exposure and earnings volatility[24]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Martin Midstream Partners L.P. (MMLP) Analysis - MMLP has shown a price increase of 9.9% over the past four weeks and 12.8% over the past 12 weeks, indicating strong investor interest [2] - MMLP has a beta of 2.12, suggesting it moves 112% higher than the market, reflecting fast-paced momentum [3] - The stock has a Momentum Score of A, indicating a favorable entry point for investors [3] - MMLP has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investor interest [3] - The stock is trading at a Price-to-Sales ratio of 0.22, indicating it is undervalued at 22 cents for each dollar of sales [3] Group 3: Additional Investment Opportunities - Besides MMLP, there are other stocks that meet the criteria of "Fast-Paced Momentum at a Bargain" [4] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [4]