Martin Midstream Partners Announces Quarterly Cash Distribution

Rhea-AI Summary

Martin Midstream Partners (NASDAQ: MMLP) has announced a quarterly cash distribution of $0.005 per unit for the quarter ended December 31, 2024. The distribution will be paid on February 14, 2025, to unitholders of record as of February 7, 2025, which is also the ex-dividend date.

The company, based in Kilgore, Texas, operates primarily in the Gulf Coast region with four main business segments: (1) terminalling, processing, and storage services for petroleum products; (2) land and marine transportation services; (3) sulfur and sulfur-based products processing and distribution; and (4) marketing and transportation services for natural gas liquids and specialty lubricants.

Positive

• Maintains consistent dividend distribution policy
• Operates diversified business segments across petroleum, transportation, and sulfur products

Negative

• Very low dividend amount of $0.005 per unit indicates minimal cash returns to unitholders

Insights

Financial Analyst

The announced quarterly distribution of $0.005 per unit from Martin Midstream Partners (MMLP) represents an extraordinarily low payout that warrants careful scrutiny. This minimal distribution, annualizing to just $0.02 per unit, translates to a yield of approximately 0.14% based on current market price - far below the typical MLP distribution yields which often range from 6% to 12%.

The microscopic distribution size suggests MMLP is prioritizing capital preservation and debt management over unitholder returns. This approach, while conservative, raises concerns about the partnership's distributable cash flow and overall financial flexibility. For midstream operators, which traditionally attract investors through higher yields, such a minimal distribution could signal ongoing challenges in the business model or balance sheet constraints.

The timing of the announcement, aligned with the quarter-end, maintains the partnership's distribution continuity, albeit at a nominal level. This strategy allows MMLP to remain in the distribution-paying category, potentially helping to maintain certain institutional investor mandates while conserving cash. However, for income-focused investors, particularly those attracted to MLPs for their traditionally higher yields, this distribution level provides negligible income benefit.

The qualified notice section highlights important tax implications for international investors, indicating 100% of distributions are subject to U.S. tax withholding. This tax treatment, combined with the minimal distribution amount, makes the investment case particularly challenging for non-U.S. investors seeking yield.

KILGORE, Texas--(BUSINESS WIRE)-- Martin Midstream Partners L.P. (NASDAQ: MMLP) announced it has declared a quarterly cash distribution of $0.005 per unit for the quarter ended December 31, 2024. The distribution is payable on February 14, 2025, to common unitholders of record as of the close of business on February 7, 2025. The ex-dividend date for the cash distribution is February 7, 2025.

Martin Midstream Partners LP, 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).

Qualified Notice to Nominees

This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent (100%) of MMLP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MMLP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Martin Midstream Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.

MMLP-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121337555/en/

Sharon Taylor

Chief Financial Officer

(877) 256-6644

ir@mmlp.com

Source: Martin Midstream Partners L.P.

FAQ

What is MMLP's quarterly distribution amount for Q4 2024?

Martin Midstream Partners (MMLP) declared a quarterly cash distribution of $0.005 per unit for Q4 2024.

When is MMLP's Q4 2024 distribution payment date?

The distribution payment date is February 14, 2025.

What is the record date for MMLP's Q4 2024 distribution?

The record date is February 7, 2025, which is also the ex-dividend date.

What are MMLP's main business segments?

MMLP operates in four main segments: terminalling and storage services, land and marine transportation, sulfur products processing, and natural gas liquids marketing and distribution.