MMLP 8-K
Martin Midstream Partners L.P. (MMLP)
8-K
2020-01-28
For: 2020-01-28
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Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): January 28, 2020
MARTIN MIDSTREAM PARTNERS L.P.
(Exact name of Registrant as specified in its charter)
DELAWARE (State of incorporation or organization) | 000-50056 (Commission file number) | 05-0527861 (I.R.S. employer identification number) | ||
4200 STONE ROAD | ||||
KILGORE, TEXAS (Address of principal executive offices) | 75662 (Zip code) | |||
Registrant's telephone number, including area code: (903) 983-6200
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Securities registered pursuant to Section 12(b) of the Act
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Units representing limited partnership interests | MMLP | The NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the
Exchange Act. o
Item 2.02 | Results of Operations and Financial Condition. | |
On January 28, 2020, Martin Midstream Partners L.P. (the “Partnership”) issued a press release reporting its financial results for the quarter and year ended December 31, 2019. A copy of the press release is furnished as Exhibit 99.1 to this Current Report and will be published on the Partnership's website at www.MMLP.com. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Item 9.01 | Financial Statements and Exhibits. | |
(d) Exhibits
In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 and Exhibit 99.2 are deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MARTIN MIDSTREAM PARTNERS L.P. By: Martin Midstream GP LLC, Its General Partner | ||||
Date: January 28, 2020 | By: /s/ Robert D. Bondurant | |||
Robert D. Bondurant | ||||
Executive Vice President, Treasurer, Principal Accounting Officer and Chief Financial Officer | ||||
EXHIBIT 99.1
MARTIN MIDSTREAM PARTNERS REPORTS FOURTH
QUARTER AND FULL YEAR 2019 FINANCIAL RESULTS,
QUARTERLY CASH DISTRIBUTION AND 2020 OUTLOOK
• | Exceeded Fourth Quarter and Full Year 2019 Net Income and Adjusted EBITDA Revised Guidance |
• | 2019 Net Income from Continuing Operations of $4.5 million Compared to 2018 Net Loss From Continuing Operations of $7.8 million |
• | Reduction of Quarterly Cash Distribution to Re-Allocate Capital and Provide Financial Flexibility |
• | 2020 Net Income and Adjusted EBITDA Guidance of $0.2 million and $117.1 million, Respectively |
KILGORE, Texas, January 28, 2020 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership”) announced today its financial results for the three months and year ended December 31, 2019.
Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "In the fourth quarter, the Partnership generated strong cash flow resulting in net income of $6.6 million and adjusted EBITDA of $35.5 million compared to our revised guidance of $3.2 million and $32.1 million, respectively. Distributable cash flow was $20.7 million, resulting in a 2.11 times distribution coverage ratio for the quarter. For the full year 2019, Adjusted EBITDA from continuing operations was $108.3 million, exceeding revised guidance by $3.4 million. Total distributable cash flow was $51.5 million resulting in a distribution coverage ratio of 1.05 times for full year 2019.
"Despite the positive quarter and the strategic actions taken over the last eighteen months to strengthen our balance sheet and reduce leverage, we believe more is required. While our efforts have resulted in an adjusted leverage ratio of 4.69 times and distribution coverage ratio of 1.05 times at year-end 2019, we are still above our stated goals for both ratios. In order to be competitive in today’s capital markets, adjusted leverage of below 4.00 times and a distribution coverage ratio of above 1.30 times is required. To provide further financial flexibility, we are resetting our annual distribution to $0.25 per unit. The Partnership will retain approximately $28.9 million annually, due to the distribution reduction, which along with estimated 2020 positive cash flow will be used for further debt reduction and future high return investment opportunities at our Beaumont and Corpus Christi facilities.
"Expanding on the fourth quarter of 2019, the majority of the excess over revised guidance was in the Sulfur Services segment due to stronger margins within the fertilizer business. In addition, I’m happy to report that after eight months of downtime our Neches terminal is fully operational, as replacement of the ship-loader was completed ahead of schedule enabling us to service our customers under their current contract terms. In the Natural Gas Liquids segment, the butane optimization business returned to historical seasonal price differentials, rebounding from the anomaly of last winter’s refinery blending season. Within the Transportation segment, marine services continued to profit from increasing day rates coupled with high utilization, while land transportation performed slightly under revised guidance.
"Moving to 2020 guidance, we estimate net income of $0.2 million and adjusted EBITDA of $117.1 million, with the majority of cash flow generated by fee based services. Our maintenance capital expenditures are forecasted to be $17.4 million, resulting in distributable cash flow of $49.6 million."
Net income from continuing operations for the fourth quarter 2019 was $6.6 million compared to the fourth quarter of 2018 of $1.6 million. Net income from continuing operations for the year ended December 31, 2019 was $4.5 million compared to a net loss of $7.8 million for the year ended December 31, 2018.
Adjusted EBITDA from continuing operations for the fourth quarter 2019 was $35.5 million compared to adjusted EBITDA from continuing operations for the fourth quarter 2018 of $25.5 million. Adjusted EBITDA from continuing operations for the year ended December 31, 2019 was $108.3 million compared to adjusted EBITDA for the year ended December 31, 2018 of $107.2 million.
Distributable cash flow from continuing operations for the fourth quarter of 2019 was $20.7 million compared to distributable cash flow from continuing operations for the fourth quarter of 2018 of $8.3 million. Distributable cash flow from continuing operations for the year ended December 31, 2019 was $41.8 million compared to distributable cash flow from continuing operations for the year ended December 31, 2018 of $36.1 million.
Net income from discontinued operations for the three months ended December 31, 2019 was $0.0 million compared to net income from discontinued operations for the three months ended December 31, 2018 of $1.0 million. The Partnership had a net loss from discontinued operations for the year ended December 31, 2019 of $179.5 million, which includes a non-cash charge related to the disposition of its natural gas storage assets of $178.8 million. Net income from discontinued operations was $63.5 million for the year ended December 31, 2018, which includes a non-cash gain related to the disposition of its West Texas LPG Pipeline Limited Partnership interests of $48.6 million.
Adjusted EBITDA from discontinued operations for the fourth quarter of 2019 was $0.0 million compared to adjusted EBITDA from discontinued operations for the fourth quarter of 2018 of $6.5 million. Adjusted EBITDA from discontinued operations for the year ended December 31, 2019 was $10.7 million compared to adjusted EBITDA from discontinued operations for the year ended December 31, 2018 of $34.7 million.
Distributable cash flow from discontinued operations for the fourth quarter of 2019 was $0.0 million compared to distributable cash flow from discontinued operations for the fourth quarter of 2018 of $6.0 million. Distributable cash flow from discontinued operations for the year ended December 31, 2019 was $9.8 million compared to distributable cash flow from discontinued operations for the year ended December 31, 2018 of $32.7 million.
Revenues for the fourth quarter of 2019 were $241.9 million compared to $267.2 million for the fourth quarter of 2018. Revenues for the year ended December 31, 2019 were $847.1 million compared to $1,020.1 million for the year ended December 31, 2018.
As discussed above, the Partnership announced it has declared a quarterly cash distribution of $0.0625 per unit, or $0.25 per unit on an annualized basis, for the quarter ended December 31, 2019. The distribution is payable on February 14, 2020 to common unitholders of record as of the close of business on February 7, 2020. The ex-dividend date for the cash distribution is February 6, 2020.
Distributable cash flow from continuing operations, distributable cash flow from discontinued operations, EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations 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 a table entitled "Reconciliation of EBITDA, Adjusted EBITDA from continuing operations, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
Included with this press release are the Partnership's consolidated financial statements as of and for the year ended December 31, 2019 and certain prior periods. These financial statements should be read in conjunction with the information contained in the Partnership's Annual Report on Form 10-K, to be filed with the SEC on February 14, 2020.
An attachment accompanying this announcement is included as an exhibit to this Form 8-K as Exhibit 99.2.
2020 Guidance
The Partnership will discuss 2020 guidance during the investors’ conference call scheduled for Wednesday, January 29, 2020 at 8:00 a.m. Details of the conference call are below. A presentation to accompany this discussion is included as an exhibit to this Form 8-K as Exhibit 99.3.
Investors' Conference Call
An investors conference call to review the fourth quarter results will be held on Wednesday, January 29, 2020 at 8:00 a.m. Central Time. The live conference call will be available by calling (877) 878-2695. For a limited time, an audio replay of the conference call will be available by calling (855) 859-2056. The conference ID is 9235509. An archive of the replay will be on Martin Midstream Partners’ website at www.MMLP.com.
About Martin Midstream Partners
Martin Midstream Partners L.P. is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business lines include: (1) terminalling, processing, storage, and packaging 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) natural gas liquids marketing, distribution and transportation services.
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 and other factors, many of which are outside the Partnership's 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 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
The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow. The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.
EBITDA, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA from Discontinued Operations. Certain items excluded from EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.
Distributable Cash Flow and Distributable Cash Flow from Discontinued Operations. Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
EBITDA, adjusted EBITDA from continuing operations, adjusted EBITDA from discontinued operations, distributable cash flow, and distributable cash flow from discontinued operations, should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.
Additional information concerning the Partnership is available on the Partnership's website at www.MMLP.com or by contacting:
Sharon Taylor - Head of Investor Relations
(877) 256-6644
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 31, | |||||||
2019 | 2018 | ||||||
Assets | |||||||
Cash | $ | 2,856 | $ | 300 | |||
Trade and accrued accounts receivable, less allowance for doubtful accounts of $532 and $576, respectively | 87,254 | 83,488 | |||||
Product exchange receivables | — | 166 | |||||
Inventories | 62,540 | 84,265 | |||||
Due from affiliates | 17,829 | 18,845 | |||||
Fair value of derivatives | — | 4 | |||||
Other current assets | 5,833 | 5,889 | |||||
Assets held for sale | 5,052 | 5,652 | |||||
Current assets - Natural Gas Storage Assets | — | 9,428 | |||||
Total current assets | 181,364 | 208,037 | |||||
Property, plant and equipment, at cost | 884,728 | 886,435 | |||||
Accumulated depreciation | (467,531 | ) | (438,602 | ) | |||
Property, plant and equipment, net | 417,197 | 447,833 | |||||
Goodwill | 17,705 | 17,785 | |||||
Right-of-use assets | 23,901 | — | |||||
Deferred income taxes, net | 23,422 | — | |||||
Intangibles and other assets, net | 3,567 | 4,584 | |||||
Non current assets - Natural Gas Storage Assets | — | 395,389 | |||||
$ | 667,156 | $ | 1,073,628 | ||||
Liabilities and Partners’ Capital | |||||||
Current portion of finance lease obligations | $ | 6,758 | $ | 5,409 | |||
Trade and other accounts payable | 64,802 | 64,041 | |||||
Product exchange payables | 4,322 | 12,103 | |||||
Due to affiliates | 1,470 | 2,133 | |||||
Income taxes payable | 472 | 445 | |||||
Fair value of derivatives | 667 | — | |||||
Other accrued liabilities | 28,789 | 24,380 | |||||
Current liabilities - Natural Gas Storage Assets | — | 3,240 | |||||
Total current liabilities | 107,280 | 111,751 | |||||
Long-term debt, net | 569,788 | 656,459 | |||||
Finance lease obligations | 717 | 6,272 | |||||
Operating lease liabilities | 16,656 | — | |||||
Other long-term obligations | 8,911 | 10,045 | |||||
Non current liabilities - Natural Gas Storage Assets | — | 669 | |||||
Total liabilities | 703,352 | 785,196 | |||||
Commitments and contingencies | |||||||
Partners’ capital (deficit) | (36,196 | ) | 288,432 | ||||
Total partners’ capital (deficit) | (36,196 | ) | 288,432 | ||||
$ | 667,156 | $ | 1,073,628 | ||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenues: | |||||||||||
Terminalling and storage * | $ | 87,397 | $ | 96,204 | $ | 99,643 | |||||
Transportation * | 159,622 | 150,121 | 135,350 | ||||||||
Sulfur services | 11,434 | 11,148 | 10,952 | ||||||||
Product sales: * | |||||||||||
Natural gas liquids | 366,502 | 496,007 | 473,317 | ||||||||
Sulfur services | 99,906 | 121,388 | 123,732 | ||||||||
Terminalling and storage | 122,257 | 145,236 | 130,392 | ||||||||
588,665 | 762,631 | 727,441 | |||||||||
Total revenues | 847,118 | 1,020,104 | 973,386 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||
Natural gas liquids * | 325,376 | 449,103 | 406,388 | ||||||||
Sulfur services * | 65,893 | 83,641 | 76,119 | ||||||||
Terminalling and storage * | 101,526 | 126,562 | 112,168 | ||||||||
492,795 | 659,306 | 594,675 | |||||||||
Expenses: | |||||||||||
Operating expenses * | 209,313 | 216,182 | 228,778 | ||||||||
Selling, general and administrative * | 41,433 | 39,116 | 39,080 | ||||||||
Impairment of long-lived assets | — | — | 2,225 | ||||||||
Depreciation and amortization | 60,060 | 61,484 | 65,108 | ||||||||
Total costs and expenses | 803,601 | 976,088 | 929,866 | ||||||||
Other operating income, net | 14,587 | 1,041 | 2,096 | ||||||||
Operating income | 58,104 | 45,057 | 45,616 | ||||||||
Other income (expense): | |||||||||||
Interest expense, net | (51,690 | ) | (52,349 | ) | (47,770 | ) | |||||
Other, net | 6 | 38 | 1,129 | ||||||||
Total other income (expense) | (51,684 | ) | (52,311 | ) | (46,641 | ) | |||||
Net income (loss) before taxes | 6,420 | (7,254 | ) | (1,025 | ) | ||||||
Income tax expense | (1,900 | ) | (577 | ) | (158 | ) | |||||
Income (loss) from continuing operations | 4,520 | (7,831 | ) | (1,183 | ) | ||||||
Income (loss) from discontinued operations, net of income taxes | (179,466 | ) | 63,486 | 21,099 | |||||||
Net income (loss) | (174,946 | ) | 55,655 | 19,916 | |||||||
Less general partner's interest in net (income) loss | 3,499 | (882 | ) | (343 | ) | ||||||
Less pre-acquisition income allocated to the general partner | — | (11,550 | ) | (2,781 | ) | ||||||
Less income allocable to unvested restricted units | (41 | ) | (28 | ) | (42 | ) | |||||
Limited partners' interest in net income (loss) | $ | (171,488 | ) | $ | 43,195 | $ | 16,750 | ||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.
*Related Party Transactions Shown Below
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
*Related Party Transactions Included Above
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Revenues: | |||||||||||
Terminalling and storage | $ | 71,733 | $ | 79,137 | $ | 82,142 | |||||
Transportation | 24,243 | 27,588 | 29,807 | ||||||||
Natural gas liquids | — | — | 122 | ||||||||
Product sales | 931 | 1,297 | 3,497 | ||||||||
Costs and expenses: | |||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||
Transportation | 61,376 | 62,965 | 63,487 | ||||||||
Natural gas liquids | — | — | 4,354 | ||||||||
Sulfur services | 10,765 | 10,641 | 9,345 | ||||||||
Terminalling and storage | 23,859 | 24,613 | 16,672 | ||||||||
Expenses: | |||||||||||
Operating expenses | 88,194 | 90,878 | 95,546 | ||||||||
Selling, general and administrative | 32,622 | 26,441 | 26,393 | ||||||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Allocation of net income (loss) attributable to: | |||||||||||
Limited partner interest: | |||||||||||
Continuing operations | $ | 4,430 | $ | (18,982 | ) | $ | (3,875 | ) | |||
Discontinued operations | (175,918 | ) | 62,177 | 20,625 | |||||||
$ | (171,488 | ) | $ | 43,195 | $ | 16,750 | |||||
General partner interest: | |||||||||||
Continuing operations | $ | 91 | $ | (387 | ) | $ | (79 | ) | |||
Discontinued operations | (3,590 | ) | 1,269 | 422 | |||||||
$ | (3,499 | ) | $ | 882 | $ | 343 | |||||
Net income (loss) per unit attributable to limited partners: | |||||||||||
Basic: | |||||||||||
Continuing operations | $ | 0.11 | $ | (0.49 | ) | $ | (0.10 | ) | |||
Discontinued operations | (4.55 | ) | 1.60 | 0.54 | |||||||
$ | (4.44 | ) | $ | 1.11 | $ | 0.44 | |||||
Weighted average limited partner units - basic | 38,659 | 38,907 | 38,102 | ||||||||
Diluted: | |||||||||||
Continuing operations | $ | 0.11 | $ | (0.49 | ) | $ | (0.10 | ) | |||
Discontinued operations | (4.55 | ) | 1.60 | 0.54 | |||||||
$ | (4.44 | ) | $ | 1.11 | $ | 0.44 | |||||
Weighted average limited partner units - diluted | 38,659 | 38,923 | 38,165 | ||||||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
(Dollars in thousands)
Partners’ Capital | ||||||||||||||||||
Parent Net Investment | Common | General Partner | ||||||||||||||||
Units | Amount | Amount | Total | |||||||||||||||
Balances – December 31, 2016 | $ | 19,054 | 35,452,062 | $ | 304,594 | $ | 7,412 | $ | 331,060 | |||||||||
Net income | 2,781 | — | 16,792 | 343 | 19,916 | |||||||||||||
Issuance of common units, net | — | 2,990,000 | 51,056 | — | 51,056 | |||||||||||||
Issuance of restricted units | — | 12,000 | — | — | — | |||||||||||||
Forfeiture of restricted units | — | (9,250 | ) | — | — | — | ||||||||||||
General partner contribution | — | — | — | 1,098 | 1,098 | |||||||||||||
Cash distributions | — | — | (75,399 | ) | (1,539 | ) | (76,938 | ) | ||||||||||
Deemed contribution from Martin Resource Management Corporation | 2,405 | — | — | — | 2,405 | |||||||||||||
Reimbursement of excess purchase price over carrying value of acquired assets | — | — | 1,125 | — | 1,125 | |||||||||||||
Excess carrying value of the assets over the purchase price paid by Martin Resource Management | — | — | (7,887 | ) | — | (7,887 | ) | |||||||||||
Unit-based compensation | — | — | 650 | — | 650 | |||||||||||||
Purchase of treasury units | — | (200 | ) | (4 | ) | — | (4 | ) | ||||||||||
Balances – December 31, 2017 | 24,240 | 38,444,612 | 290,927 | 7,314 | 322,481 | |||||||||||||
Net income | 11,550 | — | 43,223 | 882 | 55,655 | |||||||||||||
Issuance of common units, net | — | — | (118 | ) | — | (118 | ) | |||||||||||
Issuance of time-based restricted units | — | 315,500 | — | — | — | |||||||||||||
Issuance of performance-based restricted units | 317,925 | — | ||||||||||||||||
Forfeiture of restricted units | — | (27,000 | ) | — | — | — | ||||||||||||
Cash distributions | — | — | (76,872 | ) | (1,569 | ) | (78,441 | ) | ||||||||||
Deemed distribution from Martin Resource Management Corporation | (12,070 | ) | — | — | — | (12,070 | ) | |||||||||||
Excess purchase price over carrying value of acquired assets | — | — | (26 | ) | — | (26 | ) | |||||||||||
Unit-based compensation | — | — | 1,224 | — | 1,224 | |||||||||||||
Purchase of treasury units | — | (18,800 | ) | (273 | ) | — | (273 | ) | ||||||||||
Balances – December 31, 2018 | 23,720 | 39,032,237 | 258,085 | 6,627 | 288,432 | |||||||||||||
Net loss | — | — | (171,447 | ) | (3,499 | ) | (174,946 | ) | ||||||||||
Issuance of common units, net | — | — | (289 | ) | — | (289 | ) | |||||||||||
Issuance of time-based restricted units | — | 16,944 | — | — | — | |||||||||||||
Forfeiture of restricted units | — | (154,288 | ) | — | — | — | ||||||||||||
Cash distributions | — | — | (48,111 | ) | (982 | ) | (49,093 | ) | ||||||||||
Excess purchase price over carrying value of acquired assets | — | (102,393 | ) | — | (102,393 | ) | ||||||||||||
Deferred taxes on acquired assets and liabilities | — | — | 24,781 | — | 24,781 | |||||||||||||
Unit-based compensation | — | — | 1,424 | — | 1,424 | |||||||||||||
Purchase of treasury units | — | (31,504 | ) | (392 | ) | — | (392 | ) | ||||||||||
Contribution to parent | (23,720 | ) | — | — | — | (23,720 | ) | |||||||||||
Balances – December 31, 2019 | $ | — | 38,863,389 | $ | (38,342 | ) | $ | 2,146 | $ | (36,196 | ) | |||||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (174,946 | ) | $ | 55,655 | $ | 19,916 | ||||
Less: (Income) loss from discontinued operations | 179,466 | (63,486 | ) | (21,099 | ) | ||||||
Net income (loss) from continuing operations | 4,520 | (7,831 | ) | (1,183 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 60,060 | 61,484 | 65,108 | ||||||||
Amortization and write-off of deferred debt issue costs | 4,041 | 3,445 | 2,897 | ||||||||
Amortization of premium on notes payable | (306 | ) | (306 | ) | (306 | ) | |||||
Deferred income taxes | 1,360 | 208 | (156 | ) | |||||||
Gain on disposition or sale of property, plant, and equipment | (13,332 | ) | (1,041 | ) | (2,090 | ) | |||||
Impairment of long lived assets | — | — | 2,225 | ||||||||
Derivative (income) loss | 5,137 | (14,024 | ) | 1,304 | |||||||
Net cash (paid) received for commodity derivatives | (4,466 | ) | 13,948 | (5,136 | ) | ||||||
Unit-based compensation | 1,424 | 1,224 | 650 | ||||||||
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||||||||||
Accounts and other receivables | 62 | 29,085 | (29,384 | ) | |||||||
Product exchange receivables | 166 | (137 | ) | 178 | |||||||
Inventories | 21,493 | 13,370 | (14,927 | ) | |||||||
Due from affiliates | 1,822 | 5,961 | (12,096 | ) | |||||||
Other current assets | (254 | ) | 1,485 | (1,743 | ) | ||||||
Trade and other accounts payable | (898 | ) | (27,321 | ) | 19,263 | ||||||
Product exchange payables | (7,781 | ) | 555 | 4,829 | |||||||
Due to affiliates | (1,469 | ) | 99 | (5,564 | ) | ||||||
Income taxes payable | 27 | (65 | ) | (360 | ) | ||||||
Other accrued liabilities | (3,017 | ) | (6,636 | ) | (223 | ) | |||||
Change in other non-current assets and liabilities | (543 | ) | 1,206 | 2,780 | |||||||
Net cash provided by continuing operating activities | 68,046 | 74,709 | 26,066 | ||||||||
Net cash provided by discontinued operating activities | 7,769 | 30,321 | 43,018 | ||||||||
Net cash provided by operating activities | 75,815 | 105,030 | 69,084 | ||||||||
Cash flows from investing activities: | |||||||||||
Payments for property, plant, and equipment | (30,621 | ) | (35,255 | ) | (41,932 | ) | |||||
Acquisitions, net of cash acquired | (23,720 | ) | — | (19,533 | ) | ||||||
Payments for plant turnaround costs | (5,677 | ) | (1,893 | ) | (1,583 | ) | |||||
Proceeds from sale of property, plant, and equipment | 20,660 | 11,483 | 13,676 | ||||||||
Proceeds from involuntary conversion of property, plant and equipment | 5,031 | — | — | ||||||||
Proceeds from repayment of Note receivable - affiliate | — | — | 15,000 | ||||||||
Net cash used in continuing investing activities | (34,327 | ) | (25,665 | ) | (34,372 | ) | |||||
Net cash provided by (used in) discontinued investing activities | 209,155 | 173,287 | (7,263 | ) | |||||||
Net cash provided by (used in) investing activities | 174,828 | 147,622 | (41,635 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Payments of long-term debt | (729,514 | ) | (559,201 | ) | (339,224 | ) | |||||
Proceeds from long-term debt | 638,000 | 399,000 | 341,000 | ||||||||
Net proceeds from issuance of common units | (289 | ) | (118 | ) | 51,056 | ||||||
General partner contributions | — | — | 1,098 | ||||||||
Deemed contribution from (distribution to) Martin Resource Management | — | (12,070 | ) | 2,405 | |||||||
Excess purchase price over carrying value of acquired assets | (102,393 | ) | (26 | ) | (7,887 | ) | |||||
Reimbursement of excess purchase price over carrying value of acquired assets | — | — | 1,125 | ||||||||
Purchase of treasury units | (392 | ) | (273 | ) | (4 | ) | |||||
Payments of debt issuance costs | (4,406 | ) | (1,312 | ) | (66 | ) | |||||
Cash distributions paid | (49,093 | ) | (78,441 | ) | (76,938 | ) | |||||
Net cash used in financing activities | (248,087 | ) | (252,441 | ) | (27,435 | ) | |||||
Net increase in cash | 2,556 | 211 | 14 | ||||||||
Cash at beginning of year | 300 | 89 | 75 | ||||||||
Cash at end of year | $ | 2,856 | $ | 300 | $ | 89 | |||||
These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on February 14, 2020.
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Terminalling and Storage Segment
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
Year Ended December 31, | Variance | Percent Change | |||||||||||
2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 93,980 | $ | 102,514 | $ | (8,534 | ) | (8)% | |||||
Products | 122,333 | 145,326 | (22,993 | ) | (16)% | ||||||||
Total revenues | 216,313 | 247,840 | (31,527 | ) | (13)% | ||||||||
Cost of products sold | 107,081 | 132,384 | (25,303 | ) | (19)% | ||||||||
Operating expenses | 53,279 | 54,129 | (850 | ) | (2)% | ||||||||
Selling, general and administrative expenses | 5,997 | 5,327 | 670 | 13% | |||||||||
Depreciation and amortization | 30,952 | 39,508 | (8,556 | ) | (22)% | ||||||||
19,004 | 16,492 | 2,512 | 15% | ||||||||||
Other operating income (loss), net | (1,334 | ) | 1,328 | (2,662 | ) | (200)% | |||||||
Operating income | $ | 17,670 | $ | 17,820 | $ | (150 | ) | (1)% | |||||
Shore-based throughput volumes (guaranteed minimum) (gallons) | 80,000 | 80,000 | — | —% | |||||||||
Smackover refinery throughput volumes (guaranteed minimum BBL per day) | 6,500 | 6,500 | — | —% | |||||||||
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
Year Ended December 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 102,514 | $ | 105,703 | $ | (3,189 | ) | (3)% | |||||
Products | 145,326 | 130,466 | 14,860 | 11% | |||||||||
Total revenues | 247,840 | 236,169 | 11,671 | 5% | |||||||||
Cost of products sold | 132,384 | 118,832 | 13,552 | 11% | |||||||||
Operating expenses | 54,129 | 63,191 | (9,062 | ) | (14)% | ||||||||
Selling, general and administrative expenses | 5,327 | 5,832 | (505 | ) | (9)% | ||||||||
Impairment of long-lived assets | — | 600 | (600 | ) | (100)% | ||||||||
Depreciation and amortization | 39,508 | 45,160 | (5,652 | ) | (13)% | ||||||||
16,492 | 2,554 | 13,938 | 546% | ||||||||||
Other operating income, net | 1,328 | 751 | 577 | 77% | |||||||||
Operating income | $ | 17,820 | $ | 3,305 | $ | 14,515 | 439% | ||||||
Shore-based throughput volumes (guaranteed minimum) (gallons) | 80,000 | 144,998 | (64,998 | ) | (45)% | ||||||||
Smackover refinery throughput volumes (guaranteed minimum BBL per day) | 6,500 | 6,500 | — | —% | |||||||||
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Transportation Segment
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
Year Ended December 31, | Variance | Percent Change | |||||||||||
2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 183,740 | $ | 178,163 | $ | 5,577 | 3% | ||||||
Operating expenses | 141,713 | 146,300 | (4,587 | ) | (3)% | ||||||||
Selling, general and administrative expenses | 8,199 | 6,305 | 1,894 | 30% | |||||||||
Depreciation and amortization | 15,307 | 11,003 | 4,304 | 39% | |||||||||
18,521 | 14,555 | 3,966 | 27% | ||||||||||
Other operating income (loss), net | (1,691 | ) | 215 | (1,906 | ) | (887)% | |||||||
Operating income | $ | 16,830 | $ | 14,770 | $ | 2,060 | 14% | ||||||
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
Year Ended December 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Revenues | $ | 178,163 | $ | 164,043 | $ | 14,120 | 9% | ||||||
Operating expenses | 146,300 | 148,331 | (2,031 | ) | (1)% | ||||||||
Selling, general and administrative expenses | 6,305 | 4,807 | 1,498 | 31% | |||||||||
Impairment of long lived assets | — | 1,625 | (1,625 | ) | (100)% | ||||||||
Depreciation and amortization | 11,003 | 9,285 | 1,718 | 19% | |||||||||
14,555 | (5 | ) | 14,560 | 291,200% | |||||||||
Other operating income, net | 215 | 1,378 | (1,163 | ) | (84)% | ||||||||
Operating income | $ | 14,770 | $ | 1,373 | $ | 13,397 | 976% | ||||||
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Sulfur Services Segment
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
Year Ended December 31, | Variance | Percent Change | |||||||||||
2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 11,434 | $ | 11,148 | $ | 286 | 3% | ||||||
Products | 99,906 | 121,388 | (21,482 | ) | (18)% | ||||||||
Total revenues | 111,340 | 132,536 | (21,196 | ) | (16)% | ||||||||
Cost of products sold | 71,806 | 90,780 | (18,974 | ) | (21)% | ||||||||
Operating expenses | 10,639 | 11,618 | (979 | ) | (8)% | ||||||||
Selling, general and administrative expenses | 4,784 | 4,326 | 458 | 11% | |||||||||
Depreciation and amortization | 11,332 | 8,485 | 2,847 | 34% | |||||||||
12,779 | 17,327 | (4,548 | ) | (26)% | |||||||||
Other operating income (loss), net | 1,210 | (111 | ) | 1,321 | 1,190% | ||||||||
Operating income | $ | 13,989 | $ | 17,216 | $ | (3,227 | ) | (19)% | |||||
Sulfur (long tons) | 665.0 | 688.0 | (23.0 | ) | (3)% | ||||||||
Fertilizer (long tons) | 260.0 | 277.0 | (17.0 | ) | (6)% | ||||||||
Sulfur services volumes (long tons) | 925.0 | 965.0 | (40.0 | ) | (4)% | ||||||||
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
Year Ended December 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Revenues: | |||||||||||||
Services | $ | 11,148 | $ | 10,952 | $ | 196 | 2% | ||||||
Products | 121,388 | 123,732 | (2,344 | ) | (2)% | ||||||||
Total revenues | 132,536 | 134,684 | (2,148 | ) | (2)% | ||||||||
Cost of products sold | 90,780 | 82,760 | 8,020 | 10% | |||||||||
Operating expenses | 11,618 | 13,783 | (2,165 | ) | (16)% | ||||||||
Selling, general and administrative expenses | 4,326 | 4,136 | 190 | 5% | |||||||||
Depreciation and amortization | 8,485 | 8,117 | 368 | 5% | |||||||||
17,327 | 25,888 | (8,561 | ) | (33)% | |||||||||
Other operating loss, net | (111 | ) | (26 | ) | (85 | ) | (327)% | ||||||
Operating income | $ | 17,216 | $ | 25,862 | $ | (8,646 | ) | (33)% | |||||
Sulfur (long tons) | 688.0 | 807.0 | (119.0 | ) | (15)% | ||||||||
Fertilizer (long tons) | 277.0 | 276.0 | 1.0 | —% | |||||||||
Sulfur services volumes (long tons) | 965.0 | 1,083.0 | (118.0 | ) | (11)% | ||||||||
MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Natural Gas Services Segment
Comparative Results of Operations for the Years Ended December 31, 2019 and 2018
Year Ended December 31, | Variance | Percent Change | |||||||||||
2019 | 2018 | ||||||||||||
(In thousands) | |||||||||||||
Products Revenues | $ | 366,502 | $ | 496,026 | (129,524 | ) | (26)% | ||||||
Cost of products sold | 341,800 | 467,550 | (125,750 | ) | (27)% | ||||||||
Operating expenses | 6,300 | 7,107 | (807 | ) | (11)% | ||||||||
Selling, general and administrative expenses | 4,739 | 5,338 | (599 | ) | (11)% | ||||||||
Depreciation and amortization | 2,469 | 2,488 | (19 | ) | (1)% | ||||||||
11,194 | 13,543 | (2,349 | ) | (17)% | |||||||||
Other operating income (loss), net | 16,402 | (391 | ) | 16,793 | 4,295% | ||||||||
Operating income | $ | 27,596 | $ | 13,152 | $ | 14,444 | 110% | ||||||
NGLs Volumes (barrels) | 9,820 | 10,223 | (403 | ) | (4)% | ||||||||
Comparative Results of Operations for the Years Ended December 31, 2018 and 2017
Year Ended December 31, | Variance | Percent Change | |||||||||||
2018 | 2017 | ||||||||||||
(In thousands) | |||||||||||||
Products Revenues | $ | 496,026 | $ | 473,548 | 22,478 | 5% | |||||||
Cost of products sold | 467,550 | 424,610 | 42,940 | 10% | |||||||||
Operating expenses | 7,107 | 6,905 | 202 | 3% | |||||||||
Selling, general and administrative expenses | 5,338 | 7,072 | (1,734 | ) | (25)% | ||||||||
Depreciation and amortization | 2,488 | 2,546 | (58 | ) | (2)% | ||||||||
13,543 | 32,415 | (18,872 | ) | (58)% | |||||||||
Other operating loss, net | (391 | ) | (7 | ) | (384 | ) | (5,486)% | ||||||
Operating income | $ | 13,152 | $ | 32,408 | $ | (19,256 | ) | (59)% | |||||
NGLs Volumes (barrels) | 10,223 | 10,487 | (264 | ) | (3)% | ||||||||
Non-GAAP Financial Measures
The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the quarter and years ended December 31, 2019 and 2018, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.
Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | 6,642 | $ | 2,582 | $ | (174,946 | ) | $ | 55,655 | ||||||
Less: (Income) loss from discontinued operations, net of income taxes | — | (1,029 | ) | 179,466 | (63,486 | ) | |||||||||
Income (loss) from continuing operations | 6,642 | 1,553 | 4,520 | (7,831 | ) | ||||||||||
Adjustments: | |||||||||||||||
Interest expense | 11,060 | 12,566 | 51,690 | 52,349 | |||||||||||
Income tax expense | 328 | 198 | 1,900 | 577 | |||||||||||
Depreciation and amortization | 15,063 | 14,264 | 60,060 | 61,484 | |||||||||||
EBITDA from Continuing Operations | 33,093 | 28,581 | 118,170 | 106,579 | |||||||||||
Adjustments: | |||||||||||||||
(Gain) loss on sale of property, plant and equipment | 617 | (928 | ) | (13,332 | ) | (1,041 | ) | ||||||||
Unrealized mark-to-market on commodity derivatives | 1,200 | (2,972 | ) | 671 | (76 | ) | |||||||||
Non-cash insurance related accruals | — | — | 500 | — | |||||||||||
Lower of cost or market adjustments | 226 | — | 633 | — | |||||||||||
Unit-based compensation | 360 | 352 | 1,424 | 1,224 | |||||||||||
Transaction costs associated with acquisitions | — | 465 | 224 | 465 | |||||||||||
Adjusted EBITDA from Continuing Operations | 35,496 | 25,498 | 108,290 | 107,151 | |||||||||||
Adjustments: | |||||||||||||||
Interest expense | (11,060 | ) | (12,566 | ) | (51,690 | ) | (52,349 | ) | |||||||
Income tax expense | (328 | ) | (198 | ) | (1,900 | ) | (577 | ) | |||||||
Amortization of deferred debt issuance costs | 483 | 882 | 4,041 | 3,445 | |||||||||||
Amortization of debt premium | (76 | ) | (76 | ) | (306 | ) | (306 | ) | |||||||
Deferred income taxes | 260 | 208 | 1,360 | 208 | |||||||||||
Payments for plant turnaround costs | (560 | ) | (1,014 | ) | (5,677 | ) | (1,893 | ) | |||||||
Maintenance capital expenditures | (3,492 | ) | (4,389 | ) | (12,368 | ) | (19,553 | ) | |||||||
Distributable Cash Flow from Continuing Operations | $ | 20,723 | $ | 8,345 | $ | 41,750 | $ | 36,126 | |||||||
Income (loss) from discontinued operations, net of income taxes | $ | — | $ | 1,029 | $ | (179,466 | ) | $ | 63,486 | ||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 4,742 | 8,161 | 18,795 | ||||||||||||
EBITDA from Discontinued Operations | |||||||||||||||
Equity in earnings | — | — | — | (3,382 | ) | ||||||||||
Distributions from unconsolidated entities | — | — | — | 3,500 | |||||||||||
Gain from disposition of Investment in WTLPG | — | — | — | (48,564 | ) | ||||||||||
Loss on sale of property, plant and equipment, net | 704 | 178,781 | 824 | ||||||||||||
Non-cash insurance related accruals | — | — | 3,213 | — | |||||||||||
Adjusted EBITDA from Discontinued Operations | $ | — | $ | 6,475 | $ | 10,689 | $ | 34,659 | |||||||
Maintenance capital expenditures | $ | — | $ | (497 | ) | $ | (912 | ) | $ | (1,952 | ) | ||||
Distributable Cash Flow from Discontinued Operations | $ | — | $ | 5,978 | $ | 9,777 | $ | 32,707 | |||||||
Exhibit 99.2 January 28, 2020 Fourth Quarter 2019 Earnings Summary Martin Midstream Partners L.P. – NASDAQ: MMLP
LEGAL NOTICE Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures such as EBITDA and Adjusted EBITDA. 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-GAAP financial measures included in this presentation to the most directly comparable financial measures calculated and presented in accordance with GAAP is set forth in the Appendix of this presentation or on our web site at www.MMLP.com MMLP’s management believes that these non-GAAP financial measures may provide useful information to investors regarding MMLP’s financial condition and results of operations as they provide another measure of the profitability and ability to service its debt and are considered important measures by financial analysts covering MMLP and its peers. Forward Looking Statements Statements included that are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance or assumptions or forecasts related thereto), are forward-looking statements. These statements can be identified by the use of forward-looking terminology including “forecast,” “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “continue,” or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other “forward-looking” information. We and our representatives may from time to time make other oral or written statements that are also forward-looking statements. These forward-looking statements are based upon management’s current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by these forward-looking statements for a number of important reasons. A discussion of these factors, including risks and uncertainties, is set forth in Martin Midstream Partners L.P.’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners L.P. expressly disclaims any intention or obligation to revise or update any forward- looking statements whether as a result of new information, future events, or otherwise, except as required by law. 2
MMLP 4Q 2019 ADJUSTED EBITDA COMPARISON TO GUIDANCE $ millions Terminalling Natural Gas Interest Transportation Sulfur Services SG&A 4Q 2019 & Storage Liquids Expense Net income (loss) $2.6 $5.5 $9.5 $4.6 $(4.5) $(11.1) $6.6 Interest expense add back -- -- -- -- -- $11.1 $11.1 Depreciation and amortization $7.6 $4.1 $0.6 $2.8 -- -- $15.1 (Gain) loss on sale of property, plant and equipment $1.3 $(0.5) $(0.1) -- -- -- $0.7 Lower of cost or market adjustments -- -- $0.2 -- -- -- $0.2 Unrealized mark-to-market on commodity derivatives -- -- $1.2 -- -- -- $1.2 Unit-based compensation -- -- -- -- $0.3 -- $0.3 Income tax expense -- -- -- -- $0.3 -- $0.3 Adjusted EBITDA $11.5 $9.1 $11.4 $7.4 $(3.9) $0.0 $35.5 2019E 4Q19 4Q19 2019E 4Q19 4Q19 Terminalling & Storage Natural Gas Liquids Guidance Guidance Actual Guidance Guidance Actual Smackover Refinery $21.1 $5.1 $5.5 Butane $6.9 $9.0 $9.4 Martin Lubricants $13.4 $2.6 $2.9 Cardinal $10.8 $0.0 $0.0 Specialty Terminals $11.3 $3.0 $2.2 Natural Gasoline $5.1 $0.9 $0.6 Shore-Based Terminals $4.2 $0.9 $1.0 Propane $2.3 $0.7 $1.4 Total T&S $50.0 $11.6 $11.5 Total NGLs $25.1 $10.6 $11.4 2019E 4Q19 4Q19 2019E 4Q19 4Q19 Transportation Sulfur Services Guidance Guidance Actual Guidance Guidance Actual Land $20.1 $5.5 $4.7 Fertilizer $12.7 $1.9 $3.5 Marine $13.8 $3.7 $4.4 Sulfur Prilling $4.6 $1.3 $2.3 Total Transportation $33.9 $9.2 $9.1 Molten Sulfur $5.9 $1.5 $1.6 Total Sulfur Services $23.2 $4.7 $7.4 Unallocated SG&A $(16.5) $(4.0) $(3.9) Total Adjusted EBITDA $115.7 $32.1 $35.5 Note: numbers may not add due to rounding 3
MMLP YTD 2019 ADJUSTED EBITDA $ millions Terminalling Transportation Natural Gas Interest Sulfur Services SG&A 2019A & Storage Services Liquids Expense Net Income (loss) $17.7 $16.8 $(151.9) $14.0 $(19.9) $(51.7) $(175.0) Interest expense add back -- -- -- -- -- $51.7 $51.7 Depreciation and amortization $31.0 $15.3 $10.7 $11.3 -- -- $68.3 Loss on sale of property, plant and equipment $1.3 $1.7 $162.4 $0.1 -- -- $165.5 Non-cash insurance related accruals -- -- $3.2 $0.5 -- -- $3.7 Lower of cost or market adjustments -- -- $0.6 -- -- -- $0.6 Unrealized mark-to-market on commodity derivatives -- -- $0.7 -- -- -- $0.7 Unit-based compensation -- -- -- -- $1.4 -- $1.4 Transaction costs associated with acquisitions -- -- -- -- $0.2 -- $0.2 Income tax expense -- -- -- -- $1.9 -- $1.9 Adjusted EBITDA $50.0 $33.8 $25.7 $25.9 $(16.4) $0.0 $119.0 Terminalling & Storage 1Q19A 2Q19A 3Q19A 4Q19A 2019A Natural Gas Liquids 1Q19A 2Q19A 3Q19A 4Q19A 2019A Smackover Refinery $5.0 $5.3 $5.7 $5.5 $21.4 Butane $(2.2) $(0.8) $0.9 $9.4 $7.3 Martin Lubricants $2.5 $3.8 $4.5 $2.9 $13.7 Cardinal $5.2 $5.6 $0.0 $0.0 $10.8 Specialty Terminals $3.1 $2.6 $2.6 $2.2 $10.6 Natural Gasoline $2.8 $0.8 $0.6 $0.6 $4.7 Shore-Based Terminals $2.3 $0.6 $0.4 $1.0 $4.3 Propane $1.6 $(0.2) $0.2 $1.4 $3.0 Total T&S $12.9 $12.3 $13.3 $11.5 $50.0 Total NGLs $7.4 $5.4 $1.6 $11.4 $25.7 Transportation 1Q19A 2Q19A 3Q19A 4Q19A 2019A Sulfur Services 1Q19A 2Q19A 3Q19A 4Q19A 2019A Land $5.1 $5.1 $4.4 $4.7 $19.3 Fertilizer $3.2 $5.7 $1.9 $3.5 $14.3 Marine $2.7 $3.6 $3.8 $4.4 $14.5 Sulfur Prilling $1.1 $1.7 $0.2 $2.3 $5.3 Total Transportation $7.8 $8.7 $8.2 $9.1 $33.8 Molten Sulfur $2.3 $1.2 $1.1 $1.6 $6.3 Total Sulfur Services $6.7 $8.6 $3.1 $7.4 $25.9 Unallocated SG&A $(4.0) $(4.3) $(4.2) $(3.9) $(16.4) Note: numbers may not add due to rounding Total Adjusted EBITDA $30.8 $30.7 $22.0 $35.5 $119.0 4
Exhibit 99.3 Martin Midstream Partners L.P. 2020E Financial Guidance January 28, 2020 1
Disclaimers Use of Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures such as EBITDA and Adjusted EBITDA. 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-GAAP financial measures included in this presentation to the most directly comparable financial measures calculated and presented in accordance with GAAP is set forth in the Appendix of this presentation or on our web site at www.MMLP.com MMLP’s management believes that these non-GAAP financial measures may provide useful information to investors regarding MMLP’s financial condition and results of operations as they provide another measure of the profitability and ability to service its debt and are considered important measures by financial analysts covering MMLP and its peers. This presentation also includes certain financial information for the twelve months ended December 31, 2020 (“2020E”). While management believes the 2020E data is useful for investors, such data is not a measure of our financial performance under GAAP and should not be considered in isolation or as an alternative to any measure of such performance derived in accordance with GAAP. Forward Looking Statements Statements included that are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance or assumptions or forecasts related thereto), are forward-looking statements. These statements can be identified by the use of forward-looking terminology including “forecast,” “may,” “believe,” “will,” “expect,” “anticipate,” “estimate,” “continue,” or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other “forward-looking” information. We and our representatives may from time to time make other oral or written statements that are also forward-looking statements. These forward-looking statements are based upon management’s current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by these forward-looking statements for a number of important reasons. A discussion of these factors, including risks and uncertainties, is set forth in Martin Midstream Partners L.P.’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners L.P. expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events, or otherwise, except as required by law. 2
2020E Guidance Reconciliation $ millions Terminalling Sulfur Transportation Natural Gas Interest SG&A 2020E & Storage Services Services Liquids Expense Net Income (loss) $9.6 $22.8 $18.7 $18.5 $(16.6) $(52.8) $0.2 Interest expense add back -- -- -- -- -- $52.8 $52.8 Depreciation and amortization $35.0 $11.6 $14.4 $2.5 -- -- $63.5 Income tax expense -- -- -- -- $0.6 -- $0.6 Adjusted EBITDA $44.6 $34.4 $33.1 $21.0 $(16.0) $0.0 $117.1 Transportation Terminalling & Storage 1Q20E 2Q20E 3Q20E 4Q20E 2020E 1Q20E 2Q20E 3Q20E 4Q20E 2020E Services Smackover Refinery $4.2 $4.2 $4.1 $4.1 $16.6 Land $5.6 $5.6 $5.9 $5.9 $23.0 Martin Lubricants $3.3 $4.3 $4.3 $2.8 $14.7 Marine $2.6 $2.5 $2.8 $2.2 $10.1 Specialty Terminals $2.7 $2.7 $2.7 $2.8 $10.9 Total Transportation $8.2 $8.1 $8.7 $8.1 $33.1 Shore-Based Terminals $0.6 $0.6 $0.6 $0.6 $2.4 Natural Gas Liquids 1Q20E 2Q20E 3Q20E 4Q20E 2020E Total T&S $10.8 $11.8 $11.7 $10.3 $44.6 Butane $5.7 $(0.5) $0.9 $9.7 $15.8 Sulfur Services 1Q20E 2Q20E 3Q20E 4Q20E 2020E Natural Gasoline $0.8 $0.8 $0.8 $0.8 $3.2 Fertilizer $6.9 $6.6 $1.7 $2.0 $17.2 Propane $0.9 $0.1 $0.2 $0.8 $2.0 Sulfur Prilling $4.9 $2.0 $2.1 $2.1 $11.1 Total NGLs $7.4 $0.4 $1.9 $11.3 $21.0 Molten Sulfur $1.5 $1.5 $1.5 $1.6 $6.1 Adjusted EBITDA* $39.7 $30.4 $27.6 $35.4 $133.1 (from Continuing Operations) Total Sulfur Services $13.3 $10.1 $5.3 $5.7 $34.4 Unallocated SG&A $(4.0) $(4.0) $(4.0) $(4.0) $(16.0) Total Adjusted EBITDA $35.7 $26.4 $23.6 $31.4 $117.1 Note: numbers may not add due to rounding 3 * Pre-Unallocated SG&A
Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown 2020E Contract Mix Margin Based EBITDA Protection from Fixed Fee EBITDA Commodity Volume-Risk Price-Risk Price Volatility Smackover Refinery Martin Lubricants Terminalling & Specialty Terminals Storage Shore-Based Shore-Based Lubricants Terminals Sulfur Prilling Sulfur Fertilizer Fertilizer Molten Sulfur • Fee-based contracts include: Land Take-or-pay contracts for sulfur prilling Transportation Transportation and Marine handling contracts Day-rate marine contracts Fee-based storage Natural Gas contracts with minimum volume commitments Liquids NGLs Propane Butane Strategic Hedging Fee-based tolling agreements 4
Fee Based Cash Flow Reconciliation 1Q20E 2Q20E 3Q20E 4Q20E 2020E Terminalling & Storage Smackover Refinery $ 4.2 $ 4.2 $ 4.1 $ 4.1 $ 16.6 Fixed Fee Martin Lubricants $ 3.3 $ 4.3 $ 4.3 $ 2.8 $ 14.7 Margin Specialty Terminals $ 2.7 $ 2.7 $ 2.7 $ 2.8 $ 10.9 Fixed Fee Shore Based Terminals (1) $ 0.4 $ 0.4 $ 0.4 $ 0.4 $ 1.6 Fixed Fee Shore Based Lubricants $ 0.2 $ 0.2 $ 0.2 $ 0.2 $ 0.8 Margin Total Terminalling & Storage $ 10.8 $ 11.8 $ 11.7 $ 10.3 $ 44.6 Sulfur Services Fertilizer $ 6.9 $ 6.6 $ 1.7 $ 2.0 $ 17.2 Margin Sulfur Prilling $ 4.9 $ 2.0 $ 2.1 $ 2.1 $ 11.1 Fixed Fee Molten Sulfur $ 1.5 $ 1.5 $ 1.5 $ 1.6 $ 6.1 Fixed Fee Total Sulfur Services $ 13.3 $ 10.1 $ 5.3 $ 5.7 $ 34.4 Transportation Services Land $ 5.6 $ 5.6 $ 5.9 $ 5.9 $ 23.0 Marine $ 2.6 $ 2.5 $ 2.8 $ 2.2 $ 10.1 Total Transportation Services $ 8.2 $ 8.1 $ 8.7 $ 8.1 $ 33.1 Fixed Fee Natural Gas Liquids Butane $ 5.7 $ (0.5) $ 0.9 $ 9.7 $ 15.8 Margin NGLs $ 0.8 $ 0.8 $ 0.8 $ 0.8 $ 3.2 Fixed Fee Propane $ 0.9 $ 0.1 $ 0.2 $ 0.8 $ 2.0 Margin Total Natural Gas Liquids $ 7.4 $ 0.4 $ 1.9 $ 11.3 $ 21.0 Adjusted EBITDA from continuing operations $ 39.7 $ 30.4 $ 27.6 $ 35.4 $ 133.1 Unallocated SG&A $ (4.0) $ (4.0) $ (4.0) $ (4.0) $ (16.0) Total Adjusted EBITDA $ 35.7 $ 26.4 $ 23.6 $ 31.4 $ 117.1 (1) Only remaining business unit with direct upstream exposure 5
2020E Capital Expenditures (1) (1) For 2019 and 2020, the majority of the Neches Ship-loader capital expenditures will be offset by insurance recovery proceeds 6