Martin Midstream Partners(MMLP) - 2025 Q3 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents the unaudited consolidated and condensed financial statements of Martin Midstream Partners L.P. for the periods ended September 30, 2025, and December 31, 2024, including balance sheets, statements of operations, capital (deficit), and cash flows, along with detailed notes explaining accounting policies, revenue disaggregation, debt, leases, related party transactions, segment performance, and other financial disclosures Consolidated and Condensed Balance Sheets | Metric | September 30, 2025 (Unaudited) (in thousands) | December 31, 2024 (Audited) (in thousands) | | :--------------------------------- | :------------------------------------ | :--------------------------------- | | Total Assets | $510,122 | $538,509 | | Total Liabilities | $592,855 | $608,948 | | Partners' Capital (Deficit) | $(82,733) | $(70,439) | - Total assets decreased by $28,387 thousand (5.3%) from December 31, 2024, to September 30, 2025. Total liabilities decreased by $16,093 thousand (2.6%) over the same period. Partners' capital (deficit) worsened by $12,294 thousand (17.5%) from December 31, 2024, to September 30, 2025[14] Consolidated and Condensed Statements of Operations | Metric (in thousands) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total Revenues | $168,717 | $170,934 | $541,936 | $536,295 | | Operating Income | $6,894 | $12,651 | $36,179 | $50,473 | | Net Income (Loss) | $(8,412) | $(3,319) | $(11,852) | $3,734 | | Net Income (Loss) per unit attributable to limited partners - basic and diluted | $(0.21) | $(0.08) | $(0.30) | $0.09 | - For the three months ended September 30, 2025, total revenues decreased by 1.3% YoY, operating income decreased by 45.5% YoY, and net loss widened by 153.4% YoY. For the nine months ended September 30, 2025, total revenues increased by 1.0% YoY, operating income decreased by 28.3% YoY, and the company reported a net loss of $11,852 thousand compared to a net income of $3,734 thousand in the prior year[16] Consolidated and Condensed Statements of Capital (Deficit) | Metric (in thousands) | Balances - December 31, 2024 | Net loss (9 months) | Cash distributions (9 months) | Unit-based compensation (9 months) | Balances - September 30, 2025 | | :-------------------- | :--------------------------- | :------------------ | :---------------------------- | :--------------------------------- | :---------------------------- | | Total Partners' Capital (Deficit) | $(70,439) | $(11,852) | $(598) | $156 | $(82,733) | - Partners' Capital (Deficit) decreased from $(70,439) thousand at December 31, 2024, to $(82,733) thousand at September 30, 2025, primarily due to a net loss of $11,852 thousand and cash distributions of $598 thousand, partially offset by unit-based compensation[20] Consolidated and Condensed Statements of Cash Flows | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $23,683 | $6,184 | | Net cash used in investing activities | $(22,405) | $(49,642) | | Net cash provided by (used in) financing activities | $(1,284) | $43,460 | | Net increase (decrease) in cash | $(6) | $2 | - Net cash provided by operating activities significantly increased by 283% to $23,683 thousand for the nine months ended September 30, 2025, compared to $6,184 thousand in the prior year. Net cash used in investing activities decreased by 55% to $(22,405) thousand, while net cash from financing activities shifted from a $43,460 thousand inflow to a $(1,284) thousand outflow[23] Notes to Consolidated and Condensed Financial Statements NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION The Partnership is a publicly traded limited partnership primarily operating in the U.S. Gulf Coast region, with four main business lines: terminalling, processing, and storage; land and marine transportation; sulfur and sulfur-based products; and NGL marketing/distribution and specialty lubricants/grease services. The financial statements are unaudited and prepared in accordance with U.S. GAAP for interim reporting - The Partnership's four primary business lines are: terminalling, processing, and storage services; land and marine transportation services; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marketing, distribution, and transportation services for natural gas liquids (NGL) and blending and packaging services for specialty lubricants and grease[24] - The unaudited consolidated and condensed financial statements are prepared in accordance with U.S. GAAP for interim financial reporting, with all necessary adjustments made for fair presentation[25] NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS The Partnership adopted ASU 2023-07, which enhances segment reporting disclosures, and plans to adopt ASU 2023-09, requiring disaggregated income tax information, for annual reporting periods beginning after December 15, 2024 - The Partnership adopted ASU 2023-07 (Segment Reporting) in compliance with required adoption guidelines, which mandates enhanced disclosures about significant segment expenses[27] - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for annual reporting periods beginning after December 15, 2024, and will require disaggregated information about effective tax rate reconciliation and income taxes paid[28] NOTE 3. REVENUE Revenue is disaggregated by the Partnership's four major segments: Terminalling and Storage, Transportation, Sulfur Services, and Specialty Products, with specific recognition policies for each. The Partnership also discloses estimated future minimum revenue from unsatisfied performance obligations, totaling $406,863 thousand, with a significant portion from Terminalling and Storage | Segment (in thousands) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Terminalling and storage | $23,930 | $22,562 | $67,883 | $67,454 | | Transportation | $49,709 | $56,506 | $156,520 | $172,489 | | Sulfur services | $32,635 | $24,660 | $125,467 | $95,533 | | Specialty products | $62,443 | $67,206 | $192,066 | $200,819 | | Total revenues | $168,717 | $170,934 | $541,936 | $536,295 | | Future Minimum Revenue (in thousands) | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | | :------------------------------------ | :------ | :------ | :------ | :------ | :------ | :--------- | :-------- | | Terminalling and storage | $11,237 | $46,117 | $47,500 | $4