Martin Midstream Partners L.P. (NASDAQ:MMLP) Q2 2022 Earnings Conference Call July 21, 2022 9:00 AM ET Company Participants Sharon Taylor - Vice President and Chief Financial Officer Robert Bondurant - President, Chief Executive Officer and Director Randall Tauscher - Executive Vice President and Chief Operating Officer Conference Call Participants Selman Akyol - Stifel Operator Good morning. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the ...

Martin Midstream Partners L.P. Second Quarter 2022 Earnings Summary & Revised Guidance July 20, 2022 MMLP 2Q 2022 Adjusted EBITDA Comparison & Reconciliation Unallocated SG&A $(3.7) $(4.3) Total Adjusted EBITDA $22.5 $38.3 | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------------------------|--------------|-----------------|----------------|-------------|--------|----------|--------| | | Terminalling | | | Natural Gas | | Interest | 2Q2022 | | (in millions) | & Stora ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 000-50056 MARTIN MIDSTREAM PARTNERS L.P. (Exact name of registrant as specified in its charter) (State or other jurisdict ...

Martin Midstream Partners L.P. (NASDAQ:MMLP) Q1 2022 Earnings Conference Call April 21, 2022 9:00 AM ET Company Participants Sharon Taylor - CFO Bob Bondurant - President & CEO Randy Tauscher - COO Conference Call Participants Selman Akyol - Stifel Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output pro ...

Q1 2022 Performance - Adjusted EBITDA for Q1 2022 was $40 million, compared to $30.9 million in Q1 2021[4, 7] - Net income for Q1 2022 was $11.5 million[4] - Distributable cash flow for Q1 2022 was $20.9 million[10] - Adjusted free cash flow for Q1 2022 was $17.7 million[10] Segment Performance (Q1 2022 vs Q1 2021) - Terminalling & Storage Adjusted EBITDA increased from $10.6 million to $11.6 million[3, 7] - Smackover Refinery increased from $4.0 million to $3.4 million[3] - Lubricants & Specialty Products increased from $4.0 million to $5.0 million[3] - Specialty Terminals increased from $2.7 million to $2.9 million[3] - Shore-Based Terminals increased from $(0.1) million to $0.3 million[3] - Sulfur Services Adjusted EBITDA increased from $9.2 million to $15.3 million[3, 7] - Fertilizer increased from $7.1 million to $11.8 million[3] - Sulfur Prilling decreased from $2.2 million to $1.7 million[3] - Molten Sulfur increased from $(0.1) million to $1.8 million[3] - Transportation Adjusted EBITDA increased from $2.7 million to $10.5 million[4, 7] - Land increased from $3.7 million to $9.5 million[4] - Marine decreased from $(1.0) million to $1.0 million[4] - Natural Gas Liquids Adjusted EBITDA decreased from $12.2 million to $6.6 million[4, 7] - Butane decreased from $9.8 million to $5.7 million[4] - Martin Underground Storage decreased from $0.5 million to $0.4 million[4] - Natural Gasoline increased from $(0.1) million to $(0.6) million[4] - Propane decreased from $1.9 million to $1.1 million[4] 2022 Guidance - Adjusted EBITDA is projected to be between $110 million and $120 million for the year ending December 31, 2022[10] - Distributable cash flow is projected to be between $37 million and $47 million for the year ending December 31, 2022[10] - Adjusted free cash flow is projected to be between $29 million and $39 million for the year ending December 31, 2022[10]

Financial Performance and Condition - The reduction in demand for refined products due to COVID-19 has significantly impacted the company's results, cash flows, and financial condition, with ongoing uncertainty expected [164]. - The company may not have sufficient cash available for quarterly distributions after establishing cash reserves and paying general partner expenses, which could affect unitholder returns [165]. - Restrictions in debt instruments limit the company's ability to make distributions and pursue opportunities that could increase distributions to unitholders [167]. - The company's credit facility and secured notes impose a leverage ratio limit of less than 3.75 to 1.0 before distributions can be made, affecting financial flexibility [168]. - The company faces significant capital needs and limited access to capital markets due to high debt levels and industry conditions, impacting growth opportunities [135]. - As of December 31, 2021, the company had approximately $505.5 million in principal amount of debt outstanding, including $159.5 million under its credit facility [171]. - The company had the ability to borrow approximately $92.9 million under its credit facility as of December 31, 2021, without being constrained by financial covenants [175]. - A downgrade of credit ratings could impact liquidity and access to capital markets [226]. Market and Operational Risks - Demand for terminalling and storage services is heavily reliant on offshore oil and gas exploration and production activity, which is historically volatile [169]. - Fluctuations in interest rates and the phase-out of LIBOR may increase interest expenses related to floating rate debt, affecting financial results [135]. - The company is exposed to counterparty credit risk, which could negatively impact revenues and cash flows if customers or suppliers fail to perform [137]. - Adverse weather conditions and climate change risks could increase operating costs and reduce demand for services, affecting overall performance [138]. - The company may incur substantial cash reimbursements to Martin Resource Management Corporation, reducing cash available for distribution to unitholders [153]. - Price volatility of petroleum products has negatively impacted liquidity and revenues, with decreasing prices reducing inventory value and increasing prices raising purchase costs [200]. - The competitive nature of the industry poses risks, as larger competitors may attract customers and business opportunities, adversely affecting results and distributions [209]. - Operations at transportation, terminalling, storage, and distribution facilities are critical, and significant interruptions could adversely affect results of operations and cash flow [217]. - Dependence on third-party pipelines and facilities means that any unavailability could adversely affect revenues [219]. - Cybersecurity threats pose risks to operations and could result in significant financial and reputational damage [229]. Regulatory and Compliance Risks - The company’s operations are subject to regulatory risks associated with climate change, which could lead to increased compliance costs and reduced demand for its services [192]. - Compliance with the Jones Act is essential for the marine transportation business, and any failure could result in loss of eligibility for coastwise trade [221]. - Increased costs due to U.S. regulations on transportation could negatively impact results of operations [224]. - The company is not required to comply with certain NASDAQ corporate governance requirements, which may limit protections for unitholders [220]. Taxation and Financial Structure - The IRS could classify the partnership as a corporation for tax purposes, significantly reducing cash available for distribution [258]. - The company may not meet the gross income requirement, which could result in being treated as a corporation for federal income tax purposes, leading to a maximum tax rate of 21% [261]. - If treated as a corporation, cash available for distribution to unitholders would be reduced, negatively impacting after-tax returns and the value of common units [261]. - The company is subject to a Texas margin tax at a maximum effective rate of 0.525% of gross income apportioned to Texas from the prior year [264]. - Any changes to tax laws could adversely affect the company's ability to maintain partnership tax treatment, impacting cash flow and investment value [265]. - The IRS may audit the company's tax returns, potentially leading to substantial reductions in cash available for distribution if adjustments are made [268]. - Unitholders may face tax liabilities on income from the company even without cash distributions, affecting their overall tax position [270]. - Tax-exempt entities investing in common units may incur unrelated business taxable income (UBTI), leading to adverse tax consequences [274]. Unitholder Rights and Governance - As of December 31, 2021, Martin Resource Management Corporation owned 15.8% of the total outstanding common limited partner units and all ownership interests in MMGP, the general partner [239]. - Unitholders have limited voting rights, requiring at least 66 2/3% of outstanding units to remove the general partner [239]. - The Partnership Agreement restricts unitholders' ability to call meetings or acquire operational information, limiting their influence on management decisions [240]. - The general partner has discretion to establish cash reserves, which may adversely affect cash distributions to unitholders [242]. - Unitholders may face liability for the partnership's obligations if a court finds non-compliance with applicable statutes [243]. - The issuance of additional common units without unitholder approval could dilute ownership interests and decrease cash available for distribution [246]. - The general partner may transfer its interest to a third party without unitholder consent, potentially changing management [249]. - Daily trading volumes for the common units are relatively small, which may lead to price volatility [251]. Hedging and Financial Instruments - The company has established a hedging policy to manage commodity price fluctuation risks, utilizing derivatives for this purpose [396]. - As of December 31, 2021, the company recorded $0.8 million in unrealized gains from cash flow hedging derivative instruments [398]. - The weighted-average interest rate on the company's credit facility was 5.00% as of December 31, 2021, with a potential annual increase in interest expense of approximately $1.6 million from a 100 basis point rise in interest rates [400]. - The company does not typically hedge 100% of its exposure to commodity price volatility, which could influence operating income [397].

Martin Midstream Partners L.P. Fourth Quarter and Full Year 2021 Earnings Summary and 2022 Financial Guidance February 16, 2022 MMLP 4Q 2021 Adjusted EBITDA Comparison & Reconciliation | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------------|-------------------------|-----------------|----------------|-----------------------------|--------|-------------------|-------------| | (in millions) | Terminalling & Storage | Sulfur Services | Transportation | Natural Gas Liquids | ...

Financial Data and Key Metrics Changes - For Q4 2021, the adjusted EBITDA was $39.7 million, exceeding the forecast by almost $11 million, compared to $17.4 million in Q4 2020 [7] - For the full year 2021, adjusted EBITDA was $114.5 million, up from $94.9 million in 2020 [11] - The total long-term debt outstanding was $506 million, a reduction of $49 million from the end of Q3 2021, with adjusted leverage at 4.19 times, down from 5.47 times [33][34] Business Segment Performance - The Natural Gas Liquids (NGL) segment had adjusted EBITDA of $12.8 million in Q4 2021, significantly up from $2 million in Q4 2020, driven by improved butane business performance [12][14] - The Sulfur Services segment reported adjusted EBITDA of $11.4 million in Q4 2021, compared to $7.4 million a year ago, with fertilizer business adjusted EBITDA at $7.8 million, up from $5 million [16][19] - The Terminalling and Storage business had adjusted EBITDA of $11 million in Q4 2021, slightly up from $10.6 million a year ago, while the Smackover refinery's cash flow decreased by $1.1 million [22][23] - The Transportation segment's adjusted EBITDA was $8.8 million in Q4 2021, compared to $1.7 million a year ago, with land transportation cash flow increasing significantly [26][29] Market Data and Key Metrics Changes - The company experienced strong refinery demand for butane starting in October 2021, leading to expanded butane margins [13] - Fertilizer prices continued to rise due to improved supply and demand fundamentals, contributing to margin expansion [19] Company Strategy and Industry Competition - The company aims to refinance existing bonds by the end of Q3 2022 at a lower cost of capital, which is expected to improve financial metrics and bond ratings [9][10] - Management is focused on capital discipline, debt reduction, and exploring growth opportunities in terminalling and land transportation [66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing strong cash flow performance in 2022, with expectations for continued strength in the fertilizer and sulfur businesses [21][41] - The company anticipates a conservative guidance for 2022, with adjusted EBITDA expected between $100 million and $110 million [39] Other Important Information - The general partner ownership structure changed, consolidating control under Martin Resource Management Corporation, which is expected to provide long-term value to unitholders [37][38] Q&A Session Summary Question: Expectations for large maintenance expenses for the transportation fleet - Management indicated a low maintenance CapEx year for the marine fleet, with no significant capital expenses expected [45] Question: Demand pull forward in the fertilizer segment - Management acknowledged about 10% of demand was pulled forward into Q4 2021, but strong margins are expected to continue [46][47] Question: Refinancing expectations and potential for increased distributions - The primary goal of refinancing is to achieve a better rate and continue debt reduction, with future capital allocation considerations including potential increases in distributions [56]

Company Overview - Martin Midstream Partners L.P. (MMLP) is listed on NASDAQ under the ticker MMLP[3] - As of 9/30/2021, the unit price was $3.20[4], market capitalization was $124.2 million[5], and enterprise value was $672.0 million[6] - MMLP operates a diversified specialty services midstream business with operations in four key business segments strategically located along the Gulf Coast[15] Business Segments and Performance - Terminalling & Storage contributed 40% to LTM 9/30/2021 Adjusted EBITDA[19], with 29 marine-based and specialty terminal facilities having 2.6 million barrels storage capacity[17] - Sulfur contributed 28% to LTM 9/30/2021 Adjusted EBITDA[19], with six fertilizer plants[17] - Transportation contributed 16% to LTM 9/30/2021 Adjusted EBITDA[19], including ~560 tank trucks and ~1,150 trailers[17] - Natural Gas Liquids contributed 16% to LTM 9/30/2021 Adjusted EBITDA[19], with 2.1 million barrels of underground storage capacity[17] Financial Strategy and Outlook - The Partnership amended its Revolving Credit Facility to extend maturity to August 2023 and reduced commitments to $275 million[23] - The Partnership reduced its annual cash distribution to $0.020 per unit to reduce total debt[23] - The company's 2021 estimated Adjusted EBITDA is between $95 million and $102 million[79], with an Adjusted free cash flow between $22 million and $26 million[79] - As of 9/30/2021, $208.5 million was borrowed under the Revolving Credit Facility[23]

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ For the quarterly period ended September 30, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number 000-50056 MARTIN MIDSTREAM PARTNERS L.P. (Exact name of registrant as specified in its charter) (State or other jur ...