Martin Midstream Partners Reports Fourth Quarter and Full Year 2024 Financial Results and Releases 2025 Guidance
Martin Midstream Partners (MMLP) reported a net loss of $8.9 million for Q4 2024 and $5.2 million for full-year 2024, including $3.7 million in costs from the terminated merger agreement with Martin Resource Management The company generated Adjusted EBITDA of $23.3 million in Q4 and $110.6 million for full-year 2024, falling approximately $5.5 million below annual guidance.
Total debt stood at $453.6 million as of December 31, 2024, with liquidity of $80.7 million under the revolving credit facility. The company ended the year with an adjusted leverage ratio of 3.96 times.
For 2025 guidance, MMLP expects Adjusted EBITDA of $109.1 million, with growth capital expenditures of $9.0 million and maintenance capital expenditures of $25.9 million. The company projects Adjusted Free Cash Flow of approximately $18.8 million for fiscal year 2025.
Martin Midstream Partners (MMLP) ha riportato una perdita netta di 8,9 milioni di dollari per il quarto trimestre del 2024 e di 5,2 milioni di dollari per l'intero anno 2024, inclusi 3,7 milioni di dollari di costi derivanti dall'accordo di fusione terminato con Martin Resource Management. L'azienda ha generato EBITDA rettificato di 23,3 milioni di dollari nel quarto trimestre e di 110,6 milioni di dollari per l'intero anno 2024, risultando circa 5,5 milioni di dollari al di sotto delle previsioni annuali.
Il debito totale ammontava a 453,6 milioni di dollari al 31 dicembre 2024, con una liquidità di 80,7 milioni di dollari sotto la linea di credito revolving. L'azienda ha chiuso l'anno con un rapporto di leva rettificato di 3,96 volte.
Per le previsioni del 2025, MMLP prevede un EBITDA rettificato di 109,1 milioni di dollari, con spese in conto capitale per la crescita di 9,0 milioni di dollari e spese in conto capitale per la manutenzione di 25,9 milioni di dollari. L'azienda prevede un flusso di cassa libero rettificato di circa 18,8 milioni di dollari per l'anno fiscale 2025.
Martin Midstream Partners (MMLP) reportó una pérdida neta de 8.9 millones de dólares para el cuarto trimestre de 2024 y de 5.2 millones de dólares para todo el año 2024, incluyendo 3.7 millones de dólares en costos derivados del acuerdo de fusión terminado con Martin Resource Management. La compañía generó EBITDA ajustado de 23.3 millones de dólares en el cuarto trimestre y de 110.6 millones de dólares para todo el año 2024, quedando aproximadamente 5.5 millones de dólares por debajo de la guía anual.
La deuda total se situaba en 453.6 millones de dólares al 31 de diciembre de 2024, con una liquidez de 80.7 millones de dólares bajo la línea de crédito rotativa. La compañía cerró el año con un ratio de apalancamiento ajustado de 3.96 veces.
Para las proyecciones de 2025, MMLP espera un EBITDA ajustado de 109.1 millones de dólares, con gastos de capital de crecimiento de 9.0 millones de dólares y gastos de capital de mantenimiento de 25.9 millones de dólares. La compañía proyecta un flujo de efectivo libre ajustado de aproximadamente 18.8 millones de dólares para el año fiscal 2025.
Martin Midstream Partners (MMLP)는 2024년 4분기에 890만 달러의 순손실을 보고했으며, 2024년 전체에 대해 520만 달러의 순손실을 기록했습니다. 여기에는 Martin Resource Management와의 종료된 합병 계약으로 인한 370만 달러의 비용이 포함됩니다. 회사는 4분기에 조정된 EBITDA로 2330만 달러, 2024년 전체로는 1억 1060만 달러를 생성했으며, 연간 가이던스보다 약 550만 달러 부족했습니다.
총 부채는 2024년 12월 31일 기준으로 4억 5360만 달러였으며, 회전 신용 시설에서의 유동성은 8070만 달러였습니다. 회사는 조정된 레버리지 비율 3.96배로 연도를 마감했습니다.
2025년 가이던스에 따르면, MMLP는 1억 910만 달러의 조정된 EBITDA, 900만 달러의 성장 자본 지출 및 2590만 달러의 유지 관리 자본 지출을 예상하고 있습니다. 회사는 2025 회계 연도에 대해 약 1880만 달러의 조정된 자유 현금 흐름을 예측하고 있습니다.
Martin Midstream Partners (MMLP) a enregistré une perte nette de 8,9 millions de dollars pour le quatrième trimestre 2024 et de 5,2 millions de dollars pour l'année entière 2024, y compris 3,7 millions de dollars de coûts liés à l'accord de fusion résilié avec Martin Resource Management. L'entreprise a généré un EBITDA ajusté de 23,3 millions de dollars au quatrième trimestre et de 110,6 millions de dollars pour l'année entière 2024, se situant environ 5,5 millions de dollars en dessous des prévisions annuelles.
La dette totale s'élevait à 453,6 millions de dollars au 31 décembre 2024, avec une liquidité de 80,7 millions de dollars sous la ligne de crédit renouvelable. L'entreprise a terminé l'année avec un ratio d'endettement ajusté de 3,96 fois.
Pour les prévisions de 2025, MMLP s'attend à un EBITDA ajusté de 109,1 millions de dollars, avec des dépenses en capital de croissance de 9,0 millions de dollars et des dépenses en capital de maintenance de 25,9 millions de dollars. L'entreprise prévoit un flux de trésorerie libre ajusté d'environ 18,8 millions de dollars pour l'exercice 2025.
Martin Midstream Partners (MMLP) meldete für das vierte Quartal 2024 einen Nettoverlust von 8,9 Millionen Dollar und für das Gesamtjahr 2024 einen Verlust von 5,2 Millionen Dollar, einschließlich 3,7 Millionen Dollar an Kosten aus der beendeten Fusionsvereinbarung mit Martin Resource Management. Das Unternehmen erzielte ein bereinigtes EBITDA von 23,3 Millionen Dollar im vierten Quartal und 110,6 Millionen Dollar für das Gesamtjahr 2024, was etwa 5,5 Millionen Dollar unter der jährlichen Prognose liegt.
Die Gesamtschuld belief sich zum 31. Dezember 2024 auf 453,6 Millionen Dollar, mit einer Liquidität von 80,7 Millionen Dollar aus der revolvierenden Kreditlinie. Das Unternehmen schloss das Jahr mit einem bereinigten Verschuldungsgrad von 3,96.
Für die Prognose 2025 erwartet MMLP ein bereinigtes EBITDA von 109,1 Millionen Dollar, mit Investitionen in Wachstumskapital von 9,0 Millionen Dollar und Investitionen in Instandhaltungs-Kapital von 25,9 Millionen Dollar. Das Unternehmen prognostiziert einen bereinigten freien Cashflow von etwa 18,8 Millionen Dollar für das Geschäftsjahr 2025.
- Available liquidity of $80.7 million under revolving credit facility
- Sulfur Services segment exceeded guidance by $1.8 million in Q4
- Projected Adjusted Free Cash Flow of $18.8 million for 2025
- Net loss of $8.9 million in Q4 2024 and $5.2 million for full-year 2024
- Missed annual Adjusted EBITDA guidance by $5.5 million
- Increased total debt to $453.6 million from $442.5 million year-over-year
- Higher operating expenses across multiple segments
- Lower utilization rates in marine transportation business
Insights
The Q4 and FY2024 results paint a complex picture of MMLP's operational and financial position. The $110.6M Adjusted EBITDA for 2024, while below guidance, masks significant segment-level dynamics that warrant attention.
The Transportation segment's underperformance, particularly in Q4 with Adjusted EBITDA of
The Terminalling and Storage segment's performance (
The company's debt position (
The 2025 guidance of
-
Reported net loss of
and$8.9 million for the fourth quarter and full year ended December 31, 2024, respectively, which includes$5.2 million in costs associated with the termination of the Merger Agreement$3.7 million -
Adjusted EBITDA of
and$23.3 million for the fourth quarter and full year ended December 31, 2024, respectively$110.6 million - On December 26, 2024, announced termination of the Merger Agreement with Martin Resource Management Corporation
-
Releases 2025 Adjusted EBITDA Guidance of
, growth capital expenditures of$109.1 million , and maintenance capital expenditures of$9.0 million $25.9 million
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
“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
“The Terminalling and Storage segment recorded Adjusted EBITDA for the quarter of
“The Sulfur Services segment generated Adjusted EBITDA of
“For the quarter, the Specialty Products segment was in line with guidance as Adjusted EBITDA was
“Capital expenditures for the quarter were
2025 Guidance
Commenting on 2025 full year guidance, Mr. Bondurant said, “The Partnership expects to generate Adjusted EBITDA of
“The Transportation segment is projected to generate
“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
Terminalling and Storage Adjusted EBITDA decreased by
Sulfur Services Adjusted EBITDA increased by
Specialty Products Adjusted EBITDA decreased by
Unallocated selling, general, and administrative expense increased by
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
Terminalling and Storage Adjusted EBITDA decreased by
Sulfur Services Adjusted EBITDA increased by
Specialty Products Adjusted EBITDA increased
Unallocated selling, general, and administrative expense decreased by
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 |
|
|
– |
|
|
|
– |
|
|
|
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 |
|
|
— |
|
|
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
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
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.
We define Credit Adjusted EBITDA as Adjusted EBITDA excluding net income (loss) and the lower of cost or net realizable value and other non-cash adjustments associated with the butane optimization business, which we exited during the second quarter of 2023. Credit 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 provide additional information regarding the calculation of, and compliance with, certain financial covenants in the Partnership’s Third Amended and Restated Credit Agreement.
The GAAP measures most directly comparable to adjusted EBITDA and Credit Adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. Adjusted EBITDA and Credit Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA and Credit Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner.
Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we have capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider net income (loss) and net cash provided by (used in) operating activities as determined under GAAP, as well as adjusted EBITDA, to evaluate our overall performance.
Distributable Cash Flow. We define Distributable Cash Flow as Net Cash Provided by (Used in) Operating Activities less cash received (plus cash paid) for closed commodity derivative positions included in Accumulated Other Comprehensive Income (Loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable Cash Flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions we expect to pay unitholders. Distributable Cash Flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our 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.
Adjusted Free Cash Flow. We define Adjusted Free Cash Flow as Distributable Cash Flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted Free Cash Flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that Adjusted Free Cash Flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of Adjusted Free Cash Flow may or may not be comparable to similarly titled measures used by other entities.
The GAAP measure most directly comparable to Distributable Cash Flow and Adjusted Free Cash Flow is Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow should not be considered alternatives to, or more meaningful than, Net Income (Loss), Operating Income (Loss), Net Cash Provided by (Used in) Operating Activities, or any other measure of liquidity presented in accordance with GAAP. Distributable Cash Flow and Adjusted Free Cash Flow have important limitations because they exclude some items that affect Net Income (Loss), Operating Income (Loss), and Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, we believe that it is important to consider Net Cash Provided by (Used in) Operating Activities determined under GAAP, as well as Distributable Cash Flow and Adjusted Free Cash Flow, to evaluate our overall liquidity.
MMLP-F
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) |
|||||||
|
December 31, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Cash |
$ |
55 |
|
|
$ |
54 |
|
Trade and accrued accounts receivable, less allowance for doubtful accounts of |
|
53,569 |
|
|
|
53,293 |
|
Inventories |
|
51,707 |
|
|
|
43,822 |
|
Due from affiliates |
|
13,694 |
|
|
|
7,924 |
|
Other current assets |
|
11,454 |
|
|
|
9,220 |
|
Total current assets |
|
130,479 |
|
|
|
114,313 |
|
|
|
|
|
||||
Property, plant and equipment, at cost |
|
954,059 |
|
|
|
918,786 |
|
Accumulated depreciation |
|
(648,609 |
) |
|
|
(612,993 |
) |
Property, plant and equipment, net |
|
305,450 |
|
|
|
305,793 |
|
|
|
|
|
||||
Goodwill |
|
16,671 |
|
|
|
16,671 |
|
Right-of-use assets |
|
67,140 |
|
|
|
60,359 |
|
Investment in DSM Semichem LLC |
|
7,314 |
|
|
|
— |
|
Deferred income taxes, net |
|
9,946 |
|
|
|
10,200 |
|
Intangibles and other assets, net |
|
1,509 |
|
|
|
2,039 |
|
|
$ |
538,509 |
|
|
$ |
509,375 |
|
Liabilities and Partners’ Capital (Deficit) |
|
|
|
||||
Current portion of long term debt and finance lease obligations |
$ |
14 |
|
|
$ |
— |
|
Trade and other accounts payable |
|
61,599 |
|
|
|
51,653 |
|
Product exchange payables |
|
798 |
|
|
|
426 |
|
Due to affiliates |
|
4,927 |
|
|
|
6,334 |
|
Income taxes payable |
|
1,283 |
|
|
|
652 |
|
Other accrued liabilities |
|
46,880 |
|
|
|
41,499 |
|
Total current liabilities |
|
115,501 |
|
|
|
100,564 |
|
|
|
|
|
||||
Long-term debt, net |
|
437,635 |
|
|
|
421,173 |
|
Finance lease obligations |
|
55 |
|
|
|
— |
|
Operating lease liabilities |
|
47,815 |
|
|
|
45,684 |
|
Other long-term obligations |
|
7,942 |
|
|
|
6,578 |
|
Total liabilities |
|
608,948 |
|
|
|
573,999 |
|
Commitments and contingencies |
|
|
|
||||
Partners’ capital (deficit) |
|
(70,439 |
) |
|
|
(64,624 |
) |
Total partners’ capital (deficit) |
|
(70,439 |
) |
|
|
(64,624 |
) |
|
$ |
538,509 |
|
|
$ |
509,375 |
|
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per unit amounts) |
|||||||||||
|
Year Ended December 31, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenues: |
|
|
|
|
|
||||||
Terminalling and storage * |
$ |
89,067 |
|
|
$ |
86,514 |
|
|
$ |
80,193 |
|
Transportation * |
|
223,934 |
|
|
|
223,677 |
|
|
|
219,008 |
|
Sulfur services |
|
14,572 |
|
|
|
13,430 |
|
|
|
12,337 |
|
Product sales: * |
|
|
|
|
|
||||||
Specialty products |
|
264,850 |
|
|
|
346,777 |
|
|
|
540,513 |
|
Sulfur services |
|
115,199 |
|
|
|
127,565 |
|
|
|
166,827 |
|
|
|
380,049 |
|
|
|
474,342 |
|
|
|
707,340 |
|
Total revenues |
|
707,622 |
|
|
|
797,963 |
|
|
|
1,018,878 |
|
|
|
|
|
|
|
||||||
Costs and expenses: |
|
|
|
|
|
||||||
Cost of products sold: (excluding depreciation and amortization) |
|
|
|
|
|
||||||
Specialty products * |
|
228,600 |
|
|
|
305,903 |
|
|
|
503,225 |
|
Sulfur services * |
|
68,364 |
|
|
|
83,702 |
|
|
|
120,062 |
|
Terminalling and storage * |
|
72 |
|
|
|
75 |
|
|
|
19 |
|
|
|
297,036 |
|
|
|
389,680 |
|
|
|
623,306 |
|
Expenses: |
|
|
|
|
|
||||||
Operating expenses * |
|
255,586 |
|
|
|
252,211 |
|
|
|
251,886 |
|
Selling, general and administrative * |
|
48,502 |
|
|
|
40,826 |
|
|
|
41,812 |
|
Depreciation and amortization |
|
50,787 |
|
|
|
49,895 |
|
|
|
56,280 |
|
Total costs and expenses |
|
651,911 |
|
|
|
732,612 |
|
|
|
973,284 |
|
Other operating income (loss), net |
|
1,584 |
|
|
|
1,373 |
|
|
|
5,669 |
|
Operating income |
|
57,295 |
|
|
|
66,724 |
|
|
|
51,263 |
|
|
|
|
|
|
|
||||||
Other income (expense): |
|
|
|
|
|
||||||
Interest expense, net |
|
(57,706 |
) |
|
|
(60,290 |
) |
|
|
(53,665 |
) |
Equity in loss of DSM Semichem LLC |
|
(624 |
) |
|
|
— |
|
|
|
— |
|
Loss on extinguishment of debt |
|
— |
|
|
|
(5,121 |
) |
|
|
— |
|
Other, net |
|
25 |
|
|
|
56 |
|
|
|
(5 |
) |
Total other income (expense) |
|
(58,305 |
) |
|
|
(65,355 |
) |
|
|
(53,670 |
) |
Net income (loss) before taxes |
|
(1,010 |
) |
|
|
1,369 |
|
|
|
(2,407 |
) |
Income tax expense |
|
(4,197 |
) |
|
|
(5,918 |
) |
|
|
(7,927 |
) |
Net loss |
|
(5,207 |
) |
|
|
(4,549 |
) |
|
|
(10,334 |
) |
Less general partner's interest in net loss |
|
104 |
|
|
|
91 |
|
|
|
207 |
|
Less loss allocable to unvested restricted units |
|
25 |
|
|
|
14 |
|
|
|
40 |
|
Limited partners' interest in net loss |
$ |
(5,078 |
) |
|
$ |
(4,444 |
) |
|
$ |
(10,087 |
) |
|
|
|
|
|
|
||||||
Net loss per unit attributable to limited partners - basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.26 |
) |
Weighted average limited partner units - basic and diluted |
|
38,831,355 |
|
|
|
38,771,657 |
|
|
|
38,726,048 |
|
*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, |
|||||||
|
2024 |
|
2023 |
|
2022 |
|||
Revenues: |
|
|
|
|
|
|||
Terminalling and storage |
$ |
71,799 |
|
$ |
72,138 |
|
$ |
66,867 |
Transportation |
|
33,250 |
|
|
29,276 |
|
|
28,393 |
Sulfur Services |
|
664 |
|
|
— |
|
|
— |
Product sales |
|
457 |
|
|
8,767 |
|
|
554 |
Costs and expenses: |
|
|
|
|
|
|||
Cost of products sold: (excluding depreciation and amortization) |
|
|
|
|
|
|||
Specialty products |
|
31,789 |
|
|
35,930 |
|
|
39,356 |
Sulfur services |
|
11,915 |
|
|
11,182 |
|
|
10,717 |
Terminalling and storage |
|
72 |
|
|
75 |
|
|
19 |
Expenses: |
|
|
|
|
|
|||
Operating expenses |
|
106,831 |
|
|
100,851 |
|
|
93,630 |
Selling, general and administrative |
|
39,385 |
|
|
32,021 |
|
|
31,758 |
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in thousands |
|||||||||||
|
Year Ended December 31, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
||||||
Net loss |
$ |
(5,207 |
) |
|
$ |
(4,549 |
) |
|
$ |
(10,334 |
) |
Changes in fair values of commodity cash flow hedges |
|
— |
|
|
|
— |
|
|
|
(816 |
) |
Comprehensive loss |
$ |
(5,207 |
) |
|
$ |
(4,549 |
) |
|
$ |
(11,150 |
) |
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF CAPITAL (Dollars in thousands) |
||||||||||||||||||
|
|
Partners’ Capital (Deficit) |
|
|
||||||||||||||
|
|
Common |
|
General Partner Amount |
|
Accumulated Other Comprehensive Income |
|
|
||||||||||
|
|
Units |
|
Amount |
|
|
|
Total |
||||||||||
Balances – December 31, 2021 |
|
38,802,750 |
|
$ |
(50,741 |
) |
|
$ |
1,888 |
|
|
$ |
816 |
|
|
|
(48,037 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
— |
|
|
(10,127 |
) |
|
|
(207 |
) |
|
|
— |
|
|
|
(10,334 |
) |
Issuance of time-based restricted units |
|
48,000 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash distributions |
|
— |
|
|
(777 |
) |
|
|
(16 |
) |
|
|
— |
|
|
|
(793 |
) |
Changes in fair values of commodity cash flow hedges |
|
— |
|
|
— |
|
|
|
— |
|
|
|
(816 |
) |
|
|
(816 |
) |
Excess carrying value of the assets over the purchase price paid by Martin Resource Management |
|
— |
|
|
374 |
|
|
|
— |
|
|
|
— |
|
|
|
374 |
|
Unit-based compensation |
|
— |
|
|
161 |
|
|
|
— |
|
|
|
— |
|
|
|
161 |
|
Balances – December 31, 2022 |
|
38,850,750 |
|
|
(61,110 |
) |
|
|
1,665 |
|
|
|
— |
|
|
|
(59,445 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
— |
|
|
(4,458 |
) |
|
|
(91 |
) |
|
|
— |
|
|
|
(4,549 |
) |
Issuance of time-based restricted units |
|
64,056 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash distributions |
|
— |
|
|
(777 |
) |
|
|
(16 |
) |
|
|
— |
|
|
|
(793 |
) |
Unit-based compensation |
|
— |
|
|
163 |
|
|
|
— |
|
|
|
— |
|
|
|
163 |
|
Balances – December 31, 2023 |
|
38,914,806 |
|
|
(66,182 |
) |
|
|
1,558 |
|
|
|
— |
|
|
|
(64,624 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
— |
|
|
(5,103 |
) |
|
|
(104 |
) |
|
|
— |
|
|
|
(5,207 |
) |
Issuance of time-based restricted units |
|
86,280 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cash distributions |
|
— |
|
|
(779 |
) |
|
|
(16 |
) |
|
|
— |
|
|
|
(795 |
) |
Unit-based compensation |
|
— |
|
|
187 |
|
|
|
— |
|
|
|
— |
|
|
|
187 |
|
Balances – December 31, 2024 |
|
39,001,086 |
|
$ |
(71,877 |
) |
|
$ |
1,438 |
|
|
$ |
— |
|
|
$ |
(70,439 |
) |
MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) |
|||||||||||
|
Year Ended December 31, |
||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
|
||||||
Net loss |
$ |
(5,207 |
) |
|
$ |
(4,549 |
) |
|
$ |
(10,334 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
||||||
Depreciation and amortization |
|
50,787 |
|
|
|
49,895 |
|
|
|
56,280 |
|
Amortization and write-off of deferred debt issue costs |
|
3,085 |
|
|
|
3,978 |
|
|
|
3,152 |
|
Amortization of discount on notes payable |
|
2,400 |
|
|
|
2,200 |
|
|
|
— |
|
Deferred income tax expense |
|
254 |
|
|
|
4,186 |
|
|
|
5,744 |
|
Gain on disposition or sale of property, plant, and equipment |
|
(1,584 |
) |
|
|
(1,373 |
) |
|
|
(5,669 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
5,121 |
|
|
|
— |
|
Equity in loss of DSM Semichem LLC |
|
624 |
|
|
|
— |
|
|
|
— |
|
Derivative income |
|
— |
|
|
|
— |
|
|
|
(901 |
) |
Net cash received for commodity derivatives |
|
— |
|
|
|
— |
|
|
|
85 |
|
Unit-based compensation |
|
187 |
|
|
|
163 |
|
|
|
161 |
|
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: |
|
|
|
|
|
||||||
Accounts and other receivables |
|
(276 |
) |
|
|
26,348 |
|
|
|
4,579 |
|
Inventories |
|
(8,079 |
) |
|
|
65,976 |
|
|
|
(47,678 |
) |
Due from affiliates |
|
(5,770 |
) |
|
|
86 |
|
|
|
6,399 |
|
Other current assets |
|
88 |
|
|
|
4,739 |
|
|
|
(1,479 |
) |
Trade and other accounts payable |
|
10,228 |
|
|
|
(17,539 |
) |
|
|
486 |
|
Product exchange payables |
|
372 |
|
|
|
394 |
|
|
|
(1,374 |
) |
Due to affiliates |
|
(1,407 |
) |
|
|
(2,613 |
) |
|
|
7,123 |
|
Income taxes payable |
|
631 |
|
|
|
(13 |
) |
|
|
280 |
|
Other accrued liabilities |
|
600 |
|
|
|
2,880 |
|
|
|
(2,087 |
) |
Change in other non-current assets and liabilities |
|
1,418 |
|
|
|
(2,411 |
) |
|
|
1,381 |
|
Net cash provided by operating activities |
|
48,351 |
|
|
|
137,468 |
|
|
|
16,148 |
|
Cash flows from investing activities: |
|
|
|
|
|
||||||
Payments for property, plant, and equipment |
|
(42,008 |
) |
|
|
(34,317 |
) |
|
|
(27,237 |
) |
Payments for plant turnaround costs |
|
(10,897 |
) |
|
|
(4,825 |
) |
|
|
(5,176 |
) |
Investment in DSM Semichem LLC |
|
(6,938 |
) |
|
|
— |
|
|
|
— |
|
Proceeds from sale of property, plant, and equipment |
|
1,242 |
|
|
|
5,482 |
|
|
|
7,769 |
|
Net cash used in investing activities |
|
(58,601 |
) |
|
|
(33,660 |
) |
|
|
(24,644 |
) |
Cash flows from financing activities: |
|
|
|
|
|
||||||
Payments of long-term debt |
|
(244,500 |
) |
|
|
(632,197 |
) |
|
|
(393,740 |
) |
Payments under finance lease obligations |
|
(9 |
) |
|
|
(9 |
) |
|
|
(279 |
) |
Proceeds from long-term debt |
|
255,578 |
|
|
|
543,489 |
|
|
|
404,650 |
|
Excess purchase price over carrying value of acquired assets |
|
— |
|
|
|
— |
|
|
|
(1,285 |
) |
Payments of debt issuance costs |
|
(23 |
) |
|
|
(14,289 |
) |
|
|
(64 |
) |
Cash distributions paid |
|
(795 |
) |
|
|
(793 |
) |
|
|
(793 |
) |
Net cash provided by (used in) financing activities |
|
10,251 |
|
|
|
(103,799 |
) |
|
|
8,489 |
|
|
|
|
|
|
|
||||||
Net increase (decrease) in cash |
|
1 |
|
|
|
9 |
|
|
|
(7 |
) |
Cash at beginning of year |
|
54 |
|
|
|
45 |
|
|
|
52 |
|
Cash at end of year |
$ |
55 |
|
|
$ |
54 |
|
|
$ |
45 |
|
|
|
|
|
|
|
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, 2024 and 2023 |
|||||||||||||
|
Year Ended December 31, |
|
Variance |
|
Percent Change |
||||||||
|
2024 |
|
|
2023 |
|
|
|
||||||
|
(In thousands) |
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||
Revenues |
$ |
96,555 |
|
$ |
95,459 |
|
|
$ |
1,096 |
|
|
1 |
% |
Cost of products sold |
|
72 |
|
|
75 |
|
|
|
(3 |
) |
|
(4 |
)% |
Operating expenses |
|
60,409 |
|
|
57,393 |
|
|
|
3,016 |
|
|
5 |
% |
Selling, general and administrative expenses |
|
3,324 |
|
|
2,070 |
|
|
|
1,254 |
|
|
61 |
% |
Depreciation and amortization |
|
22,757 |
|
|
21,030 |
|
|
|
1,727 |
|
|
8 |
% |
|
|
9,993 |
|
|
14,891 |
|
|
|
(4,898 |
) |
|
(33 |
)% |
Other operating income (loss), net |
|
1,105 |
|
|
(359 |
) |
|
|
1,464 |
|
|
408 |
% |
Operating income |
$ |
11,098 |
|
$ |
14,532 |
|
|
$ |
(3,434 |
) |
|
(24 |
)% |
|
|
|
|
|
|
|
|
||||||
Shore-based throughput volumes (gallons) |
|
170,407 |
|
|
162,363 |
|
|
|
8,044 |
|
|
5 |
% |
Smackover refinery throughput volumes (guaranteed minimum BBL per day) |
|
6,500 |
|
|
6,500 |
|
|
|
— |
|
|
— |
% |
Transportation Segment |
||||||||||||
Comparative Results of Operations for the Years Ended December 31, 2024 and 2023 |
||||||||||||
|
Year Ended December 31, |
|
Variance |
|
Percent Change |
|||||||
|
2024 |
|
2023 |
|
|
|||||||
|
(In thousands) |
|
|
|||||||||
Revenues |
$ |
239,807 |
|
$ |
240,926 |
|
$ |
(1,119 |
) |
|
— |
% |
Operating expenses |
|
185,813 |
|
|
184,334 |
|
|
1,479 |
|
|
1 |
% |
Selling, general and administrative expenses |
|
11,496 |
|
|
9,787 |
|
|
1,709 |
|
|
17 |
% |
Depreciation and amortization |
|
13,027 |
|
|
14,879 |
|
|
(1,852 |
) |
|
(12 |
)% |
|
|
29,471 |
|
|
31,926 |
|
|
(2,455 |
) |
|
(8 |
)% |
Other operating income, net |
|
713 |
|
|
1,775 |
|
|
(1,062 |
) |
|
(60 |
)% |
Operating income |
$ |
30,184 |
|
$ |
33,701 |
|
$ |
(3,517 |
) |
|
(10 |
)% |
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, 2024 and 2023 |
|||||||||||||
|
Year Ended December 31, |
|
Variance |
|
Percent Change |
||||||||
|
|
2024 |
|
|
2023 |
|
|
||||||
|
(In thousands) |
|
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
||||||
Services |
$ |
14,572 |
|
|
$ |
13,430 |
|
$ |
1,142 |
|
|
9 |
% |
Products |
|
115,200 |
|
|
|
127,565 |
|
|
(12,365 |
) |
|
(10 |
)% |
Total revenues |
|
129,772 |
|
|
|
140,995 |
|
|
(11,223 |
) |
|
(8 |
)% |
|
|
|
|
|
|
|
|
||||||
Cost of products sold |
|
79,984 |
|
|
|
93,842 |
|
|
(13,858 |
) |
|
(15 |
)% |
Operating expenses |
|
12,178 |
|
|
|
13,143 |
|
|
(965 |
) |
|
(7 |
)% |
Selling, general and administrative expenses |
|
7,012 |
|
|
|
5,925 |
|
|
1,087 |
|
|
18 |
% |
Depreciation and amortization |
|
11,769 |
|
|
|
10,690 |
|
|
1,079 |
|
|
10 |
% |
|
|
18,829 |
|
|
|
17,395 |
|
|
1,434 |
|
|
8 |
% |
Other operating income (loss), net |
|
(298 |
) |
|
|
17 |
|
|
(315 |
) |
|
(1,853 |
)% |
Operating income |
$ |
18,531 |
|
|
$ |
17,412 |
|
$ |
1,119 |
|
|
6 |
% |
|
|
|
|
|
|
|
|
||||||
Sulfur (long tons) |
|
407.0 |
|
|
|
478.0 |
|
|
(71.0 |
) |
|
(15 |
)% |
Fertilizer (long tons) |
|
223.0 |
|
|
|
254.0 |
|
|
(31.0 |
) |
|
(12 |
)% |
Sulfur services volumes (long tons) |
|
630.0 |
|
|
|
732.0 |
|
|
(102.0 |
) |
|
(14 |
)% |
Specialty Products Segment |
|||||||||||||
Comparative Results of Operations for the Years Ended December 31, 2024 and 2023 |
|||||||||||||
|
Year Ended December 31, |
|
Variance |
|
Percent Change |
||||||||
|
2024 |
|
|
2023 |
|
|
|
||||||
|
(In thousands) |
|
|
||||||||||
Products revenues |
$ |
264,945 |
|
$ |
346,863 |
|
|
|
(81,918 |
) |
|
(24 |
)% |
Cost of products sold |
|
237,403 |
|
|
319,200 |
|
|
|
(81,797 |
) |
|
(26 |
)% |
Operating expenses |
|
102 |
|
|
78 |
|
|
|
24 |
|
|
31 |
% |
Selling, general and administrative expenses |
|
7,232 |
|
|
7,120 |
|
|
|
112 |
|
|
2 |
% |
Depreciation and amortization |
|
3,234 |
|
|
3,296 |
|
|
|
(62 |
) |
|
(2 |
)% |
|
|
16,974 |
|
|
17,169 |
|
|
|
(195 |
) |
|
(1 |
)% |
Other operating income (loss), net |
|
64 |
|
|
(60 |
) |
|
|
124 |
|
|
207 |
% |
Operating income |
$ |
17,038 |
|
$ |
17,109 |
|
|
$ |
(71 |
) |
|
— |
% |
|
|
|
|
|
|
|
|
||||||
NGL sales volumes (Bbls) |
|
2,307 |
|
|
3,681 |
|
|
|
(1,374 |
) |
|
(37 |
)% |
Other specialty products volumes (Bbls) |
|
346 |
|
|
367 |
|
|
|
(21 |
) |
|
(6 |
)% |
Total specialty products volumes (Bbls) |
|
2,653 |
|
|
4,048 |
|
|
|
(1,395 |
) |
|
(34 |
)% |
Indirect Selling, General and Administrative Expenses |
|||||||||||
Comparative Results of Operations for the Years Ended December 31, 2024 and 2023 |
|||||||||||
|
Year Ended December 31, |
|
Variance |
|
Percent Change |
||||||
|
2024 |
|
2023 |
|
|
||||||
|
(In thousands) |
|
|
||||||||
Indirect selling, general and administrative expenses |
$ |
19,556 |
|
$ |
16,030 |
|
$ |
3,526 |
|
22 |
% |
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, 2024 and 2023, which represents EBITDA, Adjusted EBITDA, Credit Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:
Reconciliation of Net income (Loss) to EBITDA, Adjusted EBITDA, and Credit Adjusted EBITDA |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
||||||||||||||
Net income (loss) |
$ |
(8,941 |
) |
|
$ |
517 |
|
|
$ |
(5,207 |
) |
|
$ |
(4,549 |
) |
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
14,895 |
|
|
|
14,376 |
|
|
|
57,706 |
|
|
|
60,290 |
|
Income tax expense |
|
563 |
|
|
|
2,299 |
|
|
|
4,197 |
|
|
|
5,918 |
|
Depreciation and amortization |
|
12,843 |
|
|
|
12,224 |
|
|
|
50,787 |
|
|
|
49,895 |
|
EBITDA |
|
19,360 |
|
|
|
29,416 |
|
|
|
107,483 |
|
|
|
111,554 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Gain on disposition of property, plant and equipment |
|
(264 |
) |
|
|
(277 |
) |
|
|
(1,584 |
) |
|
|
(1,373 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,121 |
|
Transaction expenses related to the terminated Merger with Martin Resource Management Corporation |
|
3,674 |
|
|
|
— |
|
|
|
3,674 |
|
|
|
— |
|
Equity in loss of DSM Semichem LLC |
|
221 |
|
|
|
— |
|
|
|
624 |
|
|
|
— |
|
Non-cash contractual revenue deferral adjustment |
|
310 |
|
|
|
— |
|
|
|
221 |
|
|
|
— |
|
Lower of cost or net realizable value and other non-cash adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,850 |
) |
Unit-based compensation |
|
42 |
|
|
|
36 |
|
|
|
187 |
|
|
|
163 |
|
Adjusted EBITDA |
|
23,343 |
|
|
|
29,175 |
|
|
|
110,605 |
|
|
|
102,615 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Pro-forma adjustment related to |
|
— |
|
|
|
— |
|
|
|
2,655 |
|
|
|
— |
|
Capitalized interest |
|
— |
|
|
|
— |
|
|
|
1,153 |
|
|
|
— |
|
Plus: net loss associated with butane optimization business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,256 |
|
Plus: lower of cost or net realizable value and other non-cash adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,850 |
|
Credit Adjusted EBITDA |
$ |
23,343 |
|
|
$ |
29,175 |
|
|
$ |
114,413 |
|
|
|
117,721 |
|
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Credit Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in thousands) |
|
(in thousands) |
||||||||||||
Net cash provided by operating activities |
$ |
42,167 |
|
|
$ |
31,403 |
|
|
$ |
48,351 |
|
|
$ |
137,468 |
|
Interest expense 1 |
|
13,521 |
|
|
|
13,004 |
|
|
|
52,221 |
|
|
|
54,112 |
|
Current income tax expense |
|
466 |
|
|
|
435 |
|
|
|
3,943 |
|
|
|
1,732 |
|
Transaction expenses related to the terminated Merger with Martin Resource Management Corporation |
|
3,674 |
|
|
|
— |
|
|
|
3,674 |
|
|
|
||
Non-cash contractual revenue deferral adjustment |
|
221 |
|
|
|
— |
|
|
|
221 |
|
|
|
||
Lower of cost or net realizable value and other non-cash adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,850 |
) |
Changes in operating assets and liabilities which (provided) used cash: |
|
|
|
|
|
|
|
||||||||
Accounts and other receivables, inventories, and other current assets |
|
(18,091 |
) |
|
|
1,336 |
|
|
|
14,037 |
|
|
|
(97,149 |
) |
Trade, accounts and other payables, and other current liabilities |
|
(17,898 |
) |
|
|
(18,394 |
) |
|
|
(10,424 |
) |
|
|
16,891 |
|
Other |
|
(717 |
) |
|
|
1,391 |
|
|
|
(1,418 |
) |
|
|
2,411 |
|
Adjusted EBITDA |
|
23,343 |
|
|
|
29,175 |
|
|
|
110,605 |
|
|
|
102,615 |
|
Pro-forma adjustment related to |
|
— |
|
|
|
— |
|
|
|
2,655 |
|
|
|
— |
|
Capitalized interest |
|
— |
|
|
|
— |
|
|
|
1,153 |
|
|
|
— |
|
Net loss associated with butane optimization business |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,256 |
|
Lower of cost or net realizable value and other non-cash adjustments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,850 |
|
Credit Adjusted EBITDA |
|
23,343 |
|
|
|
29,175 |
|
|
|
114,413 |
|
|
|
117,721 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(14,895 |
) |
|
|
(14,376 |
) |
|
|
(57,706 |
) |
|
|
(60,290 |
) |
Income tax expense |
|
(563 |
) |
|
|
(2,299 |
) |
|
|
(4,197 |
) |
|
|
(5,918 |
) |
Deferred income taxes |
|
97 |
|
|
|
1,864 |
|
|
|
254 |
|
|
|
4,186 |
|
Amortization of deferred debt issuance costs |
|
774 |
|
|
|
772 |
|
|
|
3,085 |
|
|
|
3,978 |
|
Amortization of discount on notes payable |
|
600 |
|
|
|
600 |
|
|
|
2,400 |
|
|
|
2,200 |
|
Payments for plant turnaround costs |
|
(1,298 |
) |
|
|
(2,458 |
) |
|
|
(10,897 |
) |
|
|
(4,825 |
) |
Maintenance capital expenditures |
|
(5,284 |
) |
|
|
(4,689 |
) |
|
|
(23,233 |
) |
|
|
(24,277 |
) |
Distributable Cash Flow |
|
2,774 |
|
|
|
8,589 |
|
|
|
24,119 |
|
|
|
32,775 |
|
Principal payments under finance lease obligations |
|
(4 |
) |
|
|
— |
|
|
|
(9 |
) |
|
|
(9 |
) |
Investment in DSM Semichem LLC |
|
— |
|
|
|
— |
|
|
|
(6,938 |
) |
|
|
— |
|
Expansion capital expenditures |
|
(2,909 |
) |
|
|
(4,908 |
) |
|
|
(18,493 |
) |
|
|
(11,034 |
) |
Adjusted Free Cash Flow |
$ |
(139 |
) |
|
$ |
3,681 |
|
|
$ |
(1,321 |
) |
|
|
21,732 |
|
(1) Net of amortization of debt issuance costs and discount and premium, which are included in interest expense but not included in net cash provided by operating activities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250212210927/en/
Sharon Taylor - Executive Vice President & Chief Financial Officer
(877) 256-6644
ir@mmlp.com
Source: Martin Midstream Partners L.P.
FAQ
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