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 ...

Financial Data and Key Metrics Changes - The company exceeded its internal EBITDA forecast by over $2 million, positioning it to exceed the disclosed EBITDA forecast range of $95 million to $102 million for 2021 [4] - Adjusted EBITDA for Q3 2021 was $21.5 million, down from $22.5 million in Q3 2020 [5] - Distributable cash flow for Q3 totaled $5.2 million, with a year-to-date total of $25.3 million [17] Business Segment Performance - The Terminalling and Storage segment had adjusted EBITDA of $11.3 million, down from $14.2 million a year ago, but was the strongest cash flow quarter for this segment in 2021 [5] - The Transportation segment's adjusted EBITDA increased to $7.6 million from $5.5 million a year ago, driven by a 23% increase in load count [8] - The Sulfur Services segment's adjusted EBITDA was $4.9 million, up from $4.2 million a year ago, with strong demand in the fertilizer product line [10] - The Natural Gas Liquids segment had adjusted EBITDA of $1.8 million, down from $2.8 million a year ago, attributed to the timing of seasonal sales [12] Market Data and Key Metrics Changes - Refinery utilization in PADD 3 improved throughout the year but saw a decline due to Hurricane Ida, with current utilization around 82% to 83% [20] - The butane market fundamentals remain favorable, with low inventory levels and high export rates compared to the previous year [29] Company Strategy and Industry Competition - The company aims to use cash flows to deleverage its balance sheet, which is seen as a means to return value to unitholders [34] - The company is positioned to benefit from strengthening cash flows despite supply chain disruptions and inflationary pressures [34] Management's Comments on Operating Environment and Future Outlook - Management noted that the increase in leverage at the end of Q3 was expected and transitory due to the cyclical nature of the butane and fertilizer businesses [34] - The company anticipates continued demand growth for trucking services, which should help offset inflationary pressures [8] Other Important Information - The total long-term debt outstanding was $555 million, with first lien leverage and adjusted leverage ratios at 1.72x and 5.47x respectively [15] - The company plans to take the ATS production facility down for turnaround in November, which may limit production volumes [10] Q&A Session Summary Question: Activity pace in refineries and outlook for Q4 - Management indicated that refinery utilization in PADD 3 has improved but has recently declined due to Hurricane Ida, with expectations of a heavier turnaround slate in early 2022 [20] Question: Impact of Hurricane Ida on assets and market - Management confirmed that their assets were not impacted by Hurricane Ida, and they have seen an uptick in marine equipment utilization recently [23] Question: Hedging position for butane and market outlook - The company is approximately 33% hedged on its butane book and remains confident in the favorable market fundamentals for butane [26][29] Question: Inflation and cost adjustments - Management stated they have been effective in passing through inflationary costs to customers, particularly in the trucking business, and have CPI adjustments in their contracts [30]

Martin Midstream Partners L.P. Third Quarter 2021 Earnings Summary October 20, 2021 Disclaimers Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States (GAAP). A reconciliation of non-G ...

Financial Performance - Total revenues for Q2 2021 were $184.3 million, a 31% increase from $140.6 million in Q2 2020[16] - The company reported a net loss of $6.6 million for Q2 2021, compared to a net loss of $2.2 million in Q2 2020[16] - Total revenue for the six months ended June 30, 2021, was $82,088,000, down 13.5% from $94,842,000 in the same period of 2020[30] - For the three months ended June 30, 2021, total revenues were $20,529, a decrease of 4.0% compared to $21,373 for the same period in 2020[94] - For the six months ended June 30, 2021, total revenues were $385.267 million, down 13% from $396.114 million for the same period in 2020[157] Revenue Breakdown - Natural gas liquids product sales surged to $67.2 million in Q2 2021, compared to $30.3 million in Q2 2020, representing a 121% increase[16] - Natural gas liquids product sales increased to $165,317,000 for the six months ended June 30, 2021, up 46.9% from $112,510,000 in 2020[30] - The partnership's sulfur services segment reported revenue of $73,121,000 for the six months ended June 30, 2021, an increase of 18.4% from $61,743,000 in 2020[30] - Revenues from terminalling and storage services for the three months ended June 30, 2021 were $15,569, compared to $15,942 for the same period in 2020, reflecting a decrease of 2.3%[94] - Total revenues for the Sulfur Services Segment increased by $4.9 million, or 15%, to $38.3 million for the three months ended June 30, 2021, compared to $33.4 million in 2020[177] Operating Income and Expenses - Operating income for the first half of 2021 was $23.3 million, slightly down from $23.6 million in the same period of 2020[16] - Operating income for the three months ended June 30, 2021, was $14,483,000, compared to $15,343,000 for the same period in 2020, indicating a decrease of about 5.6%[98] - Operating income for the six months ended June 30, 2021, increased to $23.319 million, a 63% increase from $14.571 million for the same period in 2020[158] - Operating expenses for the three months ended June 30, 2021, were $19,590,000, slightly higher than $19,440,000 in the same period of 2020, showing an increase of about 0.8%[98] - Operating expenses for the Transportation Segment rose by $3.2 million, or 11%, to $31.5 million for the same period, primarily due to increased utilities and insurance premiums[169] Cash Flow and Liquidity - The cash flow from operating activities for the six months ended June 30, 2021, was $6,085,000, a decrease of 86.4% from $44,626,000 in 2020[24] - Cash at the end of the period was $681,000, a significant increase from $52,000 at the end of the same period in 2020[24] - Net cash provided by operating activities decreased by $38.5 million, or 86%, from $44.6 million in 2020 to $6.1 million in 2021[207] Debt and Liabilities - Long-term debt increased to $517.3 million as of June 30, 2021, compared to $484.6 million at the end of 2020[14] - Total liabilities stood at $628.0 million as of June 30, 2021, slightly up from $626.5 million at the end of 2020[14] - The Partnership's accrued interest as of June 30, 2021, was $14,851,000, a decrease from $16,104,000 at the end of 2020, representing a decline of approximately 7.8%[47] - Total contractual cash obligations amounted to $693.1 million as of June 30, 2021[210] Capital Expenditures - Payments for property, plant, and equipment were $8,200,000 for the six months ended June 30, 2021, down 57.1% from $19,053,000 in 2020[24] - Capital expenditures for the six months ended June 30, 2021, totaled $10,112,000, compared to $16,769,000 for the same period in 2020, indicating a decrease of about 39.5%[98] Future Outlook - The estimated minimum future revenue from unsatisfied performance obligations totals $554,935,000, indicating strong future revenue potential[38] - Looking forward, the Partnership expects refinery utilization to increase in the second half of 2021, positively impacting demand for marine transportation services[124] Related Party Transactions - Related party transactions accounted for approximately 21% of total costs and expenses for the three months ended June 30, 2021[138] - Sales to Martin Resource Management Corporation represented approximately 11% of total revenues for the three months ended June 30, 2021[140] - The company reimbursed Martin Resource Management Corporation $32.6 million for direct costs for the three months ended June 30, 2021, compared to $30.2 million in the same period of 2020[134] Taxation - The provision for income taxes for the three months ended June 30, 2021, was $935,000, compared to $790,000 for the same period in 2020, reflecting an increase in income before income taxes[106] - The effective income tax rate for the three months ended June 30, 2021, was 40.22%, up from (472.00)% in the same period of 2020[106] Miscellaneous - The company sold its Mega Lubricants business for $22.4 million, with proceeds used to reduce outstanding borrowings[128] - The Partnership is in compliance with all debt covenants as of June 30, 2021, ensuring financial stability and operational flexibility[40] - The Partnership's operations are primarily focused in the U.S. Gulf Coast region, a major hub for petroleum refining and support services[116]

Financial Data and Key Metrics Changes - For the first half of 2021, the company is on pace with its annual projected adjusted EBITDA of between $95 million to $102 million, generating free cash flow of $15.6 million [5][20] - The overall adjusted EBITDA for Q2 2021 was $22.5 million, a decrease from $23.9 million in Q2 2020 [6] - The total long-term debt outstanding at the end of Q2 2021 was $526 million, with adjusted leverage ratios improving from 5.44x to 5.31x due to inventory working capital carve-out [18][19] Business Segment Performance - The Terminalling and Storage segment had adjusted EBITDA of $10.6 million, unchanged year-over-year, with variability noted in the Smackover Refinery cash flow [7][8] - The Sulfur Services segment's adjusted EBITDA was $8.9 million, down from $10.8 million a year ago, with fertilizer earnings showing slight improvement [9][10] - The Transportation segment's adjusted EBITDA was $5 million, with truck transportation showing a significant increase to $5.5 million due to a 19% increase in mileage [12][13] - The Natural Gas Liquids segment had adjusted EBITDA of $1.7 million, slightly up from $1.6 million, but is expected to remain weak in the upcoming quarters [16] Market Data and Key Metrics Changes - The company noted tight supply conditions in the lubricants and specialty products market, which is expected to positively impact sales volumes in the near term [8] - The sulfur deliveries into Beaumont increased significantly in July, indicating a recovery in refinery utilization and potential improvement in the sulfur business [30] Company Strategy and Industry Competition - The company plans to focus on reducing debt through free cash flow generation, aiming for an adjusted leverage ratio of 3.7x by year-end 2021 [20][23] - The company is addressing anticipated tightness around forecasted leverage and interest coverage ratios due to rising commodity prices [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery, noting improved refinery utilization and increased customer demand for services [48] - The ongoing COVID-19 pandemic, particularly the Delta variant, is acknowledged, but management believes it will not lead to a nationwide shutdown like last year [49] Other Important Information - The company amended its revolving credit facility to address anticipated working capital requirements due to elevated commodity prices [22] - Maintenance capital expenditures for the year totaled $8.1 million, with growth capital at $2 million, primarily for trailer conversions [21] Q&A Session Summary Question: Can you talk about sulfur supply and refinery utilization? - Management noted that sulfur deliveries were down due to reduced refinery utilization but have recently increased significantly in July, indicating a recovery [30] Question: Thoughts on Marine Transportation re-contracting? - Management expressed hope for continued operation in the Northeast following a successful 6-month contract for an offshore tow [31] Question: How is the butane business tracking for Q4 2021 and Q1 2022? - Management indicated that while the butane pricing environment is different from last year, they cannot provide a specific financial projection at this time [36][37] Question: Expectations for free cash flow? - Management expects free cash flow to align closely with adjusted free cash flow guidance [38] Question: Plans for capital structure management? - Management plans to address the capital structure, including the second lien notes, around August 2022 [39] Question: Current available liquidity? - As of June 30, the maximum available liquidity was $220 million, with about $40 million available [44]

Financial Performance - Q2 2021 - Adjusted EBITDA for Q2 2021 was $22.5 million, compared to $23.9 million in Q2 2020[8, 9] - Terminalling & Storage Adjusted EBITDA was $10.6 million in both Q2 2020 and Q2 2021[9] - Sulfur Services Adjusted EBITDA decreased from $10.8 million in Q2 2020 to $8.9 million in Q2 2021[9] - Transportation Adjusted EBITDA increased from $4.9 million in Q2 2020 to $5.0 million in Q2 2021[9] - Natural Gas Liquids Adjusted EBITDA increased from $1.6 million in Q2 2020 to $1.7 million in Q2 2021[9] Financial Performance - 1H 2021 - Adjusted EBITDA for 1H 2021 was $53.4 million, compared to $54.9 million in 1H 2020[13, 14] - Terminalling & Storage Adjusted EBITDA decreased from $22.1 million in 1H 2020 to $21.2 million in 1H 2021[14] - Sulfur Services Adjusted EBITDA decreased from $20.9 million in 1H 2020 to $18.1 million in 1H 2021[14] - Transportation Adjusted EBITDA decreased from $12.8 million in 1H 2020 to $7.7 million in 1H 2021[14] - Natural Gas Liquids Adjusted EBITDA increased from $7.1 million in 1H 2020 to $13.9 million in 1H 2021[14] 2021 Guidance - The company anticipates an Adjusted EBITDA between $95 million and $102 million for the year ending December 31, 2021[20]