Martin Midstream Partners LP - MMLP STOCK NEWS

Nut Tree Capital Management and Caspian Capital have announced their opposition to the proposed sale of Martin Midstream Partners L.P. (MMLP) to Martin Resource Management (MRMC) for $4.02 per common unit. The two firms, with a combined 13.2% economic exposure in MMLP, believe the offer significantly undervalues the company and its prospects. They intend to file a proxy statement and solicit votes 'AGAINST' the proposed transaction at the upcoming special meeting.

Key concerns include:

• The offer represents an Enterprise Value of only 5.1x expected 2024 EBITDA, compared to industry peers trading at 9.9x
• At a 9.9x multiple, MMLP's common units would be valued 450% higher than MRMC's offer
• The Conflicts Committee allegedly ran a 'sham process' and failed to explore superior alternatives
• Questions about the Conflicts Committee's willingness to act in the best interests of MMLP common unitholders

Martin Midstream Partners L.P. (Nasdaq: MMLP) reported its Q3 2024 financial results, announcing a net loss of $3.3 million for the quarter and net income of $3.7 million for the nine months ended September 30, 2024. The company achieved Adjusted EBITDA of $25.1 million for Q3 and $87.3 million for the nine-month period. MMLP declared a quarterly cash dividend of $0.005 per common unit.

Key highlights include:

• Slight miss of $1.3 million in Adjusted EBITDA compared to guidance
• Additional $1.4 million expense related to long-term incentive plans
• Above-guidance performance in all segments except Specialty Products
• Entered into a definitive merger agreement with Martin Resource Management on October 3, 2024

The company's total debt outstanding as of September 30, 2024, was $486.6 million, with a total adjusted leverage ratio of 4.14x.

Martin Midstream Partners L.P. (NASDAQ: MMLP) has announced it will release its third quarter 2024 financial results on Wednesday, October 16, 2024, after market close. The company will hold an investors' conference call to review the results on Thursday, October 17, 2024, at 8:00 a.m. CT.

Investors can dial in at (800) 715-9871 with Conference ID: 8536096. A replay will be available at (800) 770-2030 with the same Conference ID. Pre-registration and a webcast are available on MMLP's website. The call will discuss non-GAAP financial measures, with reconciliations provided in the financial results announcement.

MMLP, based in Kilgore, Texas, operates primarily in the Gulf Coast region, focusing on terminalling, transportation, sulfur processing, and marketing services for various petroleum and chemical products.

Martin Midstream Partners L.P. (MMLP) has announced a definitive agreement to be acquired by Martin Resource Management (MRMC). The all-cash transaction values MMLP's public common units at $4.02 per unit, representing a 34% premium to the market closing price before MRMC's initial proposal on May 24, 2024. This offer also marks an 11.33% premium to the 30-day volume-weighted average price.

The transaction, approved by MMLP's Conflicts Committee and Board of Directors, is expected to close by the end of 2024, subject to regulatory approval and unitholder vote. MRMC and related parties, holding approximately 26% of outstanding units, have committed to vote in favor of the deal. MRMC plans to finance the acquisition through existing cash, cash flow, increased credit facility borrowings, and $5 million in loans from management team members.

Nut Tree Capital Management and Caspian Capital have increased their offer to purchase Martin Midstream Partners L.P. (MMLP) to $4.50 per common unit in cash. This enhanced offer represents a 48% premium over Martin Resource Management 's (MRMC) previous proposal of $3.05 per unit. The increased offer, up from their initial $4.00 per unit, is based on financial analysis of MMLP's public information, recent results, and current peer valuations.

Despite repeated requests, Martin Midstream GP 's Conflicts Committee has refused to meet directly with Nut Tree and Caspian. The investors believe their proposal is superior to MRMC's, which they claim significantly undervalues MMLP and its future prospects. They call on the Conflicts Committee to act in the best interests of all MMLP unitholders by meeting with them and requiring approval from the majority of unaffiliated unitholders for any transaction with MRMC.

Nut Tree Capital Management and Caspian Capital have sent a letter to the Conflicts Committee of Martin Midstream GP , highlighting conflicts of interest in the potential acquisition of Martin Midstream Partners L.P. (NASDAQ: MMLP). They reiterated their $4.00 per common unit offer, representing a 31% premium over Martin Resource Management 's (MRMC) offer. The letter expresses concern over the Conflicts Committee's refusal to engage with their proposal without MRMC's support.

Nut Tree and Caspian are urging that any transaction with MRMC be subject to approval by a majority of unaffiliated common unit holders. They question the Conflicts Committee's impartiality, given its long-standing relationships with MRMC's leadership. The investors encourage all unaffiliated MMLP common unit holders to voice their opinions on the Partnership's future to the General Partner's Board and management.

Martin Midstream Partners (MMLP) reported its Q2 2024 financial results, with net income of $3.8 million and adjusted EBITDA of $31.7 million. The company exceeded guidance by $0.5 million. Key highlights include:

- Total adjusted leverage of 3.88 times as of June 30, 2024
- Declared quarterly cash dividend of $0.005 per common unit
- Transportation Services segment outperformed projections
- Sulfur Services segment benefited from strong fertilizer margins
- Specialty Products segment results were in line with guidance
- Terminalling and Storage segment results were below guidance due to a $1.5 million casualty loss reserve

The company's performance varied across segments, with some areas exceeding expectations while others faced challenges. MMLP's diversified operations in the Gulf Coast region continue to drive its financial results.

Martin Resource Management (MRMC), owner of Martin Midstream Partners L.P. (NASDAQ:MMLP), has responded to a proposal by Nut Tree Capital and Caspian Capital. MRMC reiterates its intention to acquire all outstanding common units of MMLP and has no interest in selling its interests or exploring other strategic alternatives. They are currently in active discussions with MMLP's Conflicts Committee, and if a definitive agreement is not reached, MRMC will withdraw its proposal.

MRMC is a provider of marketing and distribution of hydrocarbons and by-products, owning 100% of the general partner's equity interests and 15.7% of MMLP's outstanding partnership units.

Nut Tree Capital Management and Caspian Capital have made a public offer to acquire Martin Midstream Partners L.P. (MMLP) for $4.00 per common unit in cash, representing a 31% premium over Martin Resource Management 's (MRMC) previous offer and 23% over MMLP's recent closing price. The offer is not subject to financing conditions and is backed by existing capital. Despite the premium offer, the Conflicts Committee of Martin Midstream's General Partner has refused to engage, citing the need for support from MRMC, which owns the General Partner. Nut Tree and Caspian criticize MRMC's conflicted interests and undervaluation of MMLP, arguing their proposal offers fairer value to unitholders. They are prepared for expedited due diligence and potential price increases based on findings.