Martin Midstream Partners Reports Fourth Quarter and Full Year 2024 Financial Results and Releases 2025 Guidance
- Reported net loss of $8.9 million and $5.2 million for the fourth quarter and full year ended December 31, 2024, respectively, which includes $3.7 million in costs associated with the termination of the Merger Agreement
- Adjusted EBITDA of $23.3 million and $110.6 million for the fourth quarter and full year ended December 31, 2024, respectively
- On December 26, 2024, announced termination of the Merger Agreement with Martin Resource Management Corporation
- Releases 2025 Adjusted EBITDA Guidance of $109.1 million, growth capital expenditures of $9.0 million, and maintenance capital expenditures of $25.9 million
KILGORE, Texas–(BUSINESS WIRE)–Martin Midstream Partners L.P. (Nasdaq: MMLP) (“MMLP” or the “Partnership”) today announced its financial results for the fourth quarter and full year ended December 31, 2024.
Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, “For the fourth quarter and full year 2024 the Partnership generated Adjusted EBITDA of $23.3 million and $110.6 million, respectively, which was below our annual guidance level by approximately $5.5 million, with the variance primarily occurring in the fourth quarter. Our total debt outstanding was approximately $453.6 million as of December 31, 2024 and our liquidity was approximately $80.7 million under our revolving credit facility. We ended the year with an adjusted leverage ratio of 3.96 times based on Credit Adjusted EBITDA which includes capitalized interest and a pro-forma adjustment related to the ELSA project.”
“Speaking to our financial results by business segment, I’ll begin with the Transportation division where the majority of the guidance variance occurred, as Adjusted EBITDA for the quarter was $6.5 million compared to guidance of $11.2 million. The marine business experienced much lower levels of utilization for our heated barges when compared to projections as refinery activity slowed during the quarter. Results for the land transportation business were negatively impacted early in the quarter by Hurricane Milton in Central Florida resulting in short-term challenges to our trucking operations in that market.”
“The Terminalling and Storage segment recorded Adjusted EBITDA for the quarter of $7.4 million compared to guidance of $9.4 million. During the quarter, the Smackover refinery dealt with operating performance challenges which resulted in increased expenses related to product blending. Our Specialty Terminals also saw increased maintenance costs in the quarter related to equipment repairs due to Hurricane Milton.”
“The Sulfur Services segment generated Adjusted EBITDA of $9.4 million compared to guidance of $7.6 million for the quarter as both the fertilizer and sulfur businesses beat guidance by approximately $1.0 million. The fertilizer business benefited from increased sales volumes for all product lines as compared to forecast and volumes in the sulfur business were 14% higher than our internal forecast. The segment also benefited from the revenue related to the guaranteed reservation fee, beginning this quarter as part of the improvements to our Plainview, Texas facility for the ELSA project.”
“For the quarter, the Specialty Products segment was in line with guidance as Adjusted EBITDA was $4.5 million compared to guidance of $4.6 million. The lubricants and grease businesses experienced higher margins as compared to forecast which was offset by lower than projected sales volumes for the propane business due to warm winter weather.”
“Capital expenditures for the quarter were $9.5 million with $2.9 million related to growth projects and $6.6 million for maintenance and turnaround costs. For the year 2024, growth capital expenditures totaled $25.4 million including $20.3 million for the ELSA project, and maintenance and turnaround costs were approximately $34.1 million for a total of $59.5 million.”
2025 Guidance
Commenting on 2025 full year guidance, Mr. Bondurant said, “The Partnership expects to generate Adjusted EBITDA of $109.1 million in 2025, which includes unallocated selling, general and administrative expenses of approximately $14.6 million. In addition, we anticipate capital expenditures for growth, maintenance, and plant turnaround costs to be $34.9 million. These projections result in Adjusted Free Cash Flow of approximately $18.8 million for the fiscal year.”
“The Transportation segment is projected to generate $35.4 million of Adjusted EBITDA in 2025. While we are projecting the marine business to improve year over year, results in land transportation will be negatively impacted by higher operating lease costs as we continue to recapitalize the fleet and forecasted increases in casualty insurance premiums for the trucking industry as a whole. The Terminalling and Storage segment Adjusted EBITDA forecast of $35.6 million reflects stable fee-based businesses which are favorably impacted by annual adjustments based on a price index. The Adjusted EBITDA forecast of $31.9 million for the Sulfur Services segment reflects increased earnings from the ELSA project and fertilizer business, offset by an anticipated decrease in margin per ton on the pure sulfur side. The Specialty Products segment Adjusted EBITDA forecast of $20.8 reflects anticipated stability in each business with a slight increase in results for both the grease and propane businesses.”
“Finally, as we considered the future of MMLP, including through conversations over the last year with our investors and advisors, it became clear internally that our focus should remain on improving the balance sheet through debt reduction and identifying opportunities to improve operating results that will strengthen the Partnership’s position when the time arrives to refinance our outstanding notes due in 2028. As we look forward, I want to thank our employees for their dedication and commitment to serving our customers, suppliers, and communities where we live and operate.”
More detailed 2025 Financial Guidance is provided as an attachment included in the Current Report on Form 8-K to which this press release is included.
The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort as the adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with a reasonable degree of certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant.
MMLP does not intend at this time to provide financial guidance beyond 2025.
Termination of the Merger Agreement
As previously disclosed, on December 26, 2024, MMLP announced the termination of the previously announced Agreement and Plan of Merger (the “Merger Agreement”), dated October 3, 2024, with Martin Resource Management Corporation (“MRMC”), pursuant to which MRMC would have acquired all of the outstanding common units of MMLP not already owned by MRMC and its subsidiaries (the “Merger”). The Merger Agreement was terminated by the mutual written consent of MRMC and MMLP (with the approval of the Conflicts Committee of the Board of Directors of Martin Midstream GP LLC pursuant to the terms of the Merger Agreement. MMLP will continue to operate as a standalone publicly traded company.
|
FOURTH QUARTER 2024 OPERATING RESULTS BY BUSINESS SEGMENT |
|||||||||||||||||||||||
|
|
Operating Income (Loss) ($M) |
|
Credit Adjusted EBITDA ($M) |
|
Adjusted EBITDA ($M) |
||||||||||||||||||
|
|
Three Months Ended December 31, |
||||||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Amounts may not add or recalculate due to rounding) |
||||||||||||||||||||||
|
Business Segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Transportation |
$ |
3.7 |
|
|
$ |
8.6 |
|
|
$ |
6.5 |
|
|
$ |
12.0 |
|
|
$ |
6.5 |
|
|
$ |
12.0 |
|
|
Terminalling and Storage |
|
1.5 |
|
|
|
3.9 |
|
|
|
7.4 |
|
|
|
9.0 |
|
|
|
7.4 |
|
|
|
9.0 |
|
|
Sulfur Services |
|
6.1 |
|
|
|
4.8 |
|
|
|
9.4 |
|
|
|
7.4 |
|
|
|
9.4 |
|
|
|
7.4 |
|
|
Specialty Products |
|
3.7 |
|
|
|
4.0 |
|
|
|
4.5 |
|
|
|
4.9 |
|
|
|
4.5 |
|
|
|
4.9 |
|
|
Unallocated Selling, General and Administrative Expense |
|
(8.2 |
) |
|
|
(4.1 |
) |
|
|
(4.4 |
) |
|
|
(4.1 |
) |
|
|
(4.4 |
) |
|
|
(4.1 |
) |
|
|
$ |
6.8 |
|
|
$ |
17.2 |
|
|
$ |
23.3 |
|
|
$ |
29.2 |
|
|
$ |
23.3 |
|
|
$ |
29.2 |
|
Transportation Adjusted EBITDA decreased by $5.5 million. In our land division, Adjusted EBITDA declined by $4.3 million, primarily due to increased operating expenses. Additionally, lower miles contributed to a decrease in freight revenue. In our marine division, Adjusted EBITDA decreased by $1.2 million, driven by lower inland utilization and higher employee-related expenses. These impacts were partially offset by higher inland and offshore day rates, as well as lower operating expenses.
Terminalling and Storage Adjusted EBITDA decreased by $1.6 million. At our Smackover refinery, Adjusted EBITDA declined by $0.9 million, primarily due to higher operating expenses. In our specialty terminals division, Adjusted EBITDA fell by $1.4 million, driven by increased operating expenses. These declines were partially offset by a $0.5 million increase in Adjusted EBITDA in our shore-based terminals division, primarily due to higher fuel throughput. In our underground NGL storage division, Adjusted EBITDA increased by $0.1 million as lower operating expenses were partially offset by decreased throughput revenue.
Sulfur Services Adjusted EBITDA increased by $2.0 million. In our fertilizer division, Adjusted EBITDA rose by $1.2 million, driven by reservation fees from our new DSM Semichem joint venture. Additionally, we experienced export sales activity in Q4 2024, which did not occur in Q4 2023. In our pure sulfur business, Adjusted EBITDA increased by $0.9 million due to higher margins and volume-driven increased to operating fees. These increases were partially offset by a $0.1 million decline in our sulfur prilling business, primarily due to higher operating expenses.
Specialty Products Adjusted EBITDA decreased by $0.4 million. In our lubricants division, Adjusted EBITDA increased by $0.2 million, driven by higher margins, partially offset by lower volumes. In our grease division, Adjusted EBITDA decreased by $0.1 million, primarily due to higher employee-related expenses and lower margins. In our propane division, Adjusted EBITDA declined by $0.3 million, primarily due to lower volumes and margins. In our NGL division, Adjusted EBITDA remained steady at $0.3 million, reflecting consistent volumes and margins.
Unallocated selling, general, and administrative expense increased by $0.3 million, primarily due to higher insurance-related costs. This increase was partially offset by lower professional fees and a reduced overhead allocation from Martin Resource Management Corporation.
|
FULL YEAR 2024 OPERATING RESULTS BY BUSINESS SEGMENT |
|||||||||||||||||||||||
|
|
Operating Income (Loss) ($M) |
|
Credit Adjusted EBITDA ($M) |
|
Adjusted EBITDA ($M) |
||||||||||||||||||
|
|
Twelve Months Ended December 31, |
||||||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(Amounts may not add or recalculate due to rounding) |
||||||||||||||||||||||
|
Business Segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Transportation |
$ |
30.2 |
|
|
$ |
33.7 |
|
|
$ |
42.5 |
|
|
$ |
46.8 |
|
|
$ |
42.5 |
|
|
$ |
46.8 |
|
|
Terminalling and Storage |
|
11.1 |
|
|
|
14.5 |
|
|
|
32.8 |
|
|
|
35.9 |
|
|
|
32.8 |
|
|
|
35.9 |
|
|
Sulfur Services |
|
18.5 |
|
|
|
17.4 |
|
|
|
33.5 |
|
|
|
28.1 |
|
|
|
30.8 |
|
|
|
28.1 |
|
|
Specialty Products |
|
17.0 |
|
|
|
17.1 |
|
|
|
20.2 |
|
|
|
22.8 |
|
|
|
20.2 |
|
|
|
7.7 |
|
|
Unallocated Selling, General and Administrative Expense |
|
(19.6 |
) |
|
|
(16.0 |
) |
|
|
(14.6 |
) |
|
|
(15.9 |
) |
|
|
(15.7 |
) |
|
|
(15.9 |
) |
|
|
$ |
57.3 |
|
|
$ |
66.7 |
|
|
$ |
114.4 |
|
|
$ |
117.7 |
|
|
$ |
110.6 |
|
|
$ |
102.6 |
|
Transportation Adjusted EBITDA decreased by $4.3 million. In our land division, Adjusted EBITDA declined by $6.5 million, primarily due to higher operating expenses and a slight decrease in transportation rates, partially offset by increased freight revenue driven by higher miles. In our marine division, Adjusted EBITDA increased by $2.2 million, reflecting higher inland and offshore transportation rates and lower insurance-related costs. These increases were partially offset by lower inland and offshore utilization due to downtime from regulatory inspections, as well as higher employee-related expenses.
Terminalling and Storage Adjusted EBITDA decreased by $3.1 million. In our shore-based terminals division, Adjusted EBITDA increased by $2.5 million, primarily due to higher fuel throughput and space rental revenue. In our specialty terminals division, Adjusted EBITDA declined by $2.2 million, driven by increased operating expenses, partially offset by higher storage, throughput, and miscellaneous service revenue. At our Smackover refinery, Adjusted EBITDA decreased by $3.4 million, primarily due to higher insurance-related and other operating expenses. In our underground NGL storage division, Adjusted EBITDA remained steady at $1.6 million.
Sulfur Services Adjusted EBITDA increased by $2.7 million. In our fertilizer division, Adjusted EBITDA rose by $1.6 million, driven by reservation fees from our new DSM Semichem joint venture, increased margins, and export sales activity in 2024, compared to no export activity in 2023. These increases were partially offset by lower sales volumes. In our sulfur division, Adjusted EBITDA increased by $1.1 million. Within this division, our pure sulfur business saw a $1.1 million rise in Adjusted EBITDA due to higher margins, increased service revenue from higher contractual rates, and lower utilities expenses. In our sulfur prilling business, Adjusted EBITDA rose by $0.1 million, primarily due to a volume-driven increase in operating fees, partially offset by higher operating expenses.
Specialty Products Adjusted EBITDA increased $12.5 million. Specialty products Credit Adjusted EBITDA, which excludes 2023 results from the previously exited butane optimization business, declined by $2.6 million. In our lubricants division, Adjusted EBITDA fell by $1.9 million, driven by lower volume and margins, along with higher employee-related expenses. In our grease division, Adjusted EBITDA decreased by $0.3 million, primarily due to higher employee-related expenses. In our propane division, Adjusted EBITDA remained steady at $2.1 million, while in our NGL division, Adjusted EBITDA declined by $0.3 million due to lower margins.
Unallocated selling, general, and administrative expense decreased by $0.2 million, reflecting lower professional fees and a reduction in the overhead allocation from Martin Resource Management Corporation, partially offset by increased insurance claims expense.
|
RESULTS OF OPERATIONS SUMMARY (in millions, except per unit amounts) |
|||||||||||||||||||||||
|
Period |
|
Net Income (Loss) |
|
Net Income (Loss) Per Unit |
|
Adjusted EBITDA |
|
Credit Adjusted EBITDA |
|
Net Cash Provided by Operating Activities |
|
Distributable Cash Flow |
|
Revenues |
|||||||||
|
|
|||||||||||||||||||||||
|
Three Months Ended December 31, 2024 |
|
$ |
(8.9 |
) |
|
$ |
(0.22 |
) |
|
$ |
23.3 |
|
$ |
23.3 |
|
$ |
42.2 |
|
$ |
2.8 |
|
$ |
171.3 |
|
Three Months Ended December 31, 2023 |
|
$ |
0.5 |
|
|
$ |
0.01 |
|
|
$ |
29.2 |
|
$ |
29.2 |
|
$ |
31.4 |
|
$ |
8.5 |
|
$ |
181.1 |
|
Twelve Months Ended December 31, 2024 |
|
$ |
(5.2 |
) |
|
$ |
(0.13 |
) |
|
$ |
110.6 |
|
$ |
114.4 |
|
$ |
48.4 |
|
$ |
20.3 |
|
$ |
707.6 |
|
Twelve Months Ended December 31, 2023 |
|
$ |
(4.5 |
) |
|
$ |
(0.11 |
) |
|
$ |
102.6 |
|
$ |
117.7 |
|
$ |
137.5 |
|
$ |
32.8 |
|
$ |
798.0 |
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Credit Adjusted EBITDA for the Three Months Ended December 31, 2024 |
|||||||||||||||||||||||||
|
(in millions) |
|
Transportation |
|
Terminalling & Storage |
|
Sulfur Services |
|
Specialty Products |
|
SG&A |
|
Interest Expense |
|
4Q 2024 Actual |
|||||||||||
|
Net income (loss) |
|
$ |
3.7 |
|
|
$ |
1.5 |
|
$ |
6.1 |
|
$ |
3.7 |
|
$ |
(9.1 |
) |
|
$ |
(14.9 |
) |
|
$ |
(9.0 |
) |
|
Interest expense add back |
|
|
– |
|
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
14.9 |
|
|
|
14.9 |
|
|
Equity in loss of DSM Semichem LLC |
|
|
– |
|
|
|
– |
|
|
– |
|
|
– |
|
|
0.3 |
|
|
|
– |
|
|
|
0.3 |
|
|
Income tax expense |
|
|
– |
|
|
|
– |
|
|
– |
|
|
– |
|
|
0.6 |
|
|
|
– |
|
|
|
0.6 |
|
|
Operating Income (loss) |
|
|
3.7 |
|
|
|
1.5 |
|
|
6.1 |
|
|
3.7 |
|
|
(8.2 |
) |
|
|
– |
|
|
|
6.8 |
|
|
Depreciation and amortization |
|
|
3.0 |
|
|
|
5.9 |
|
|
3.1 |
|
|
0.8 |
|
|
– |
|
|
|
– |
|
|
|
12.8 |
|
|
Gain on sale or disposition of property, plant, and equipment |
|
|
(0.2 |
) |
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
– |
|
|
|
(0.1 |
) |
|
Transaction expenses related to the terminated Merger with Martin Resource Management Corporation |
|
|
– |
|
|
|
– |
|
|
– |
|
|
– |
|
|
3.7 |
|
|
|
– |
|
|
|
3.7 |
|
|
Non-cash contractual revenue deferral adjustment |
|
|
– |
|
|
|
– |
|
|
0.2 |
|
|
– |
|
|
– |
|
|
|
– |
|
|
|
0.2 |
|
|
Unit-based compensation |
|
|
– |
|
|
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
Adjusted EBITDA and Credit Adjusted EBITDA |
|
$ |
6.5 |
|
|
$ |
7.4 |
|
$ |
9.4 |
|
$ |
4.5 |
|
$ |
(4.4 |
) |
|
$ |
– |
|
|
$ |
23.3 |
|
|
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Credit Adjusted EBITDA for the Twelve Months Ended December 31, 2024 |
|||||||||||||||||||||||||||
|
(in millions) |
|
Transportation |
|
Terminalling & Storage |
|
Sulfur Services |
|
Specialty Products |
|
SG&A |
|
Interest Expense |
|
FY 2024 Actual |
|||||||||||||
|
Net income (loss) |
|
$ |
30.2 |
|
|
$ |
11.1 |
|
|
$ |
18.5 |
|
$ |
17.0 |
|
|
$ |
(24.4 |
) |
|
$ |
(57.7 |
) |
|
$ |
(5.2 |
) |
|
Interest expense add back |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
– |
|
|
|
– |
|
|
|
57.7 |
|
|
$ |
57.7 |
|
|
Equity in loss of DSM Semichem LLC |
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
0.6 |
|
|
|
|
$ |
0.6 |
|
|||||
|
Income tax expense |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
– |
|
|
|
4.2 |
|
|
|
– |
|
|
$ |
4.2 |
|
|
Operating Income (loss) |
|
|
30.2 |
|
|
|
11.1 |
|
|
|
18.5 |
|
|
17.0 |
|
|
|
(19.6 |
) |
|
|
– |
|
|
|
57.3 |
|
|
Depreciation and amortization |
|
|
13.0 |
|
|
|
22.8 |
|
|
|
11.8 |
|
|
3.2 |
|
|
|
– |
|
|
|
– |
|
|
|
50.8 |
|
|
Gain on sale or disposition of property, plant, and equipment |
|
|
(0.7 |
) |
|
|
(1.1 |
) |
|
|
0.3 |
|
|
(0.1 |
) |
|
|
– |
|
|
|
– |
|
|
|
(1.6 |
) |
|
Transaction expenses related to the terminated Merger with Martin Resource Management Corporation |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
– |
|
|
|
3.7 |
|
|
|
– |
|
|
|
3.7 |
|
|
Non-cash contractual revenue deferral adjustment |
|
|
– |
|
|
|
– |
|
|
|
0.2 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
0.2 |
|
|
Unit-based compensation |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
– |
|
|
|
0.2 |
|
|
|
– |
|
|
|
0.2 |
|
|
Adjusted EBITDA |
|
|
42.5 |
|
|
|
32.8 |
|
|
|
30.8 |
|
|
20.2 |
|
|
|
(15.7 |
) |
|
|
– |
|
|
|
110.6 |
|
|
Pro-forma adjustment related to ELSA project |
|
|
– |
|
|
|
– |
|
|
|
2.7 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
2.7 |
|
|
Capitalized interest |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
– |
|
|
|
1.1 |
|
|
|
– |
|
|
|
1.1 |
|
|
Credit Adjusted EBITDA |
|
$ |
42.5 |
|
|
$ |
32.8 |
|
|
$ |
33.5 |
|
$ |
20.2 |
|
|
$ |
(14.6 |
) |
|
$ |
– |
|
|
$ |
114.4 |
|
|
CAPITALIZATION |
|||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||
|
|
($ in millions) |
||||
|
Debt Outstanding: |
|
|
|
||
|
Revolving Credit Facility, Due February 2027 1 |
$ |
53.5 |
|
$ |
42.5 |
|
Finance lease obligations |
|
0.1 |
|
|
— |
|
11.50% Senior Secured Notes, Due February 2028 |
|
400.0 |
|
|
400.0 |
|
Total Debt Outstanding: |
$ |
453.6 |
|
$ |
442.5 |
|
|
|
|
|
||
|
Summary Credit Metrics: |
|
|
|
||
|
Revolving Credit Facility – Total Capacity |
$ |
150.0 |
|
$ |
175.0 |
|
Revolving Credit Facility – Available Liquidity |
$ |
80.7 |
|
$ |
109.0 |
|
Total Adjusted Leverage Ratio 2 |
3.96x |
|
3.75x |
||
|
Senior Leverage Ratio 2 |
0.47x |
|
0.36x |
||
|
Interest Coverage Ratio 2 |
2.14x |
|
2.19x |
||
| 1 |
The Partnership was in compliance with all debt covenants as of December 31, 2024 and December 31, 2023. |
| 2 |
As calculated under the Partnership’s revolving credit facility. |
NON-GAAP FINANCIAL MEASURES
EBITDA, Adjusted EBITDA, Credit Adjusted EBITDA, Distributable cash flow and Adjusted Free Cash Flow are non-GAAP financial measures which are explained in greater detail below under the heading “Use of Non-GAAP Financial Information.” The Partnership has also included below tables entitled “Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and Credit Adjusted EBITDA” and “Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Credit Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow” in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership’s Adjusted EBITDA to the Partnership’s Adjusted EBITDA guidance for the fourth quarter and full-year 2024.
About MMLP
Martin Midstream Partners L.P., headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP’s primary business lines include: (1) terminalling, processing, and storage services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn, Facebook, and X (formerly known as Twitter).
Forward-Looking Statements
Statements about the Partnership’s outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment (ii) uncertainties relating to the Partnership’s future cash flows and operations, (iii) the Partnership’s ability to pay future distributions, (iv) future market conditions, (v) current and future governmental regulation, (vi) future taxation, and (vii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the “SEC”). The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.
Use of Non-GAAP Financial Information
To assist management in assessing our business, we use the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization (“EBITDA”), Adjusted EBITDA (as defined below), Credit Adjusted EBITDA (as defined below), distributable cash flow available to common unitholders (“Distributable Cash Flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations (“Adjusted Free Cash Flow”). Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with U.S. GAAP to analyze our performance.
Certain items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing an entity’s financial performance, such as cost of capital and historical costs of depreciable assets.
EBITDA, Adjusted EBITDA and Credit Adjusted EBITDA. We define Adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments, and transaction costs associated with business combination, merger, and divestiture activities. Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others, to assess:
- the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis;
- the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; and
- our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.
Contacts
Sharon Taylor – Executive Vice President & Chief Financial Officer
(877) 256-6644
ir@mmlp.com
