Martin Midstream Partners Reports Second Quarter 2024 Financial Results and Declares Quarterly Cash Distribution

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Neutral)

Insights

Martin Midstream Partners' (MMLP) latest financial results reveal a mixed performance across its segments. Key takeaways include a $3.8 million net income for Q2 2024, a notable increase from $1.1 million in Q2 2023. Adjusted EBITDA also rose to $31.7 million, up from $25.5 million in the previous year.

The company's overall leverage ratio slightly increased to 3.88x, indicating a higher debt level, which could be a red flag for risk-averse investors. However, compliance with all debt covenants suggests no immediate financial distress.

Segment-wise analysis:

Transportation Services: Although there was a casualty loss reserve impacting the marine division, the land division outperformed due to higher mileage and lower maintenance costs. The mixed performance here indicates some operational efficiencies but also vulnerabilities.

Sulfur Services: This segment showed strong performance with a positive impact from increased fertilizer margins and high sulfur production. This could be a bright spot for future revenue growth.

Terminalling and Storage: The segment experienced a decline due to a crude oil spill. Such incidents can have long-term repercussions, including potential environmental liabilities and remediation costs.

Specialty Products: Steady performance with the grease division helping offset other underperforming areas. This indicates a balanced but not overly robust segment.

In summary, while MMLP shows improvement in some areas, the increased leverage and specific incident-related losses introduce elements of concern. For retail investors, this mixed bag suggests caution, particularly given the complexities of the different business segments.

From a market perspective, Martin Midstream Partners has delivered a nuanced set of results. The $0.005 dividend per unit is a modest return, reflecting the company's conservative approach amid operational challenges. The slight improvement in net income and adjusted EBITDA should be viewed in the context of industry benchmarks and segment-specific dynamics.

Sulfur Services' growth in fertilizer margins highlights a strategic position within a commodity market that benefits from agricultural cycles. This segment appears to be a strong performer and could be a focal point for investors looking for stability and growth.

The Transportation Services' mixed results point to operational volatility, with external factors like casualty losses and regulatory inspections playing a significant role. Retail investors should note that transportation services can be sensitive to such disruptions, which might affect short-term performance but doesn't necessarily indicate a long-term trend.

Terminalling and Storage's drop due to a spill underlines the risks associated with handling petroleum products. Environmental incidents not only have immediate financial impacts but can also erode investor confidence and incur additional regulatory scrutiny.

Overall, while the company's diversified operations provide multiple revenue streams, each segment carries its own risks and rewards. Retail investors should consider these factors when evaluating the stock, focusing on the long-term potential rather than short-term fluctuations.

07/17/2024 - 04:01 PM

Net income of $3.8 million and $7.1 million for the three and six months ended June 30, 2024, respectively
Adjusted EBITDA of $31.7 million and $62.1 million for the three and six months ended June 30, 2024, respectively
Total adjusted leverage of 3.88 times as of June 30, 2024
Declares quarterly cash dividend of $0.005 per common unit

KILGORE, Texas--(BUSINESS WIRE)-- Martin Midstream Partners L.P. (Nasdaq: MMLP) (“MMLP” or the “Partnership”) today announced its financial results for the second quarter of 2024.

Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, “For the second quarter of 2024, the Partnership exceeded guidance by $0.5 million with adjusted EBITDA of $31.7 million compared to guidance of $31.2 million. Within our Transportation Services segment the land division continued to outperform projections assisted by higher than forecasted mileage along with lower maintenance expense. The marine division, however, was negatively impacted by a casualty loss reserve of $0.5 million from a bridge allision that occurred in May. The marine division also experienced lower fleet utilization this quarter as a result of both the allision and extended time of equipment in dry dock for regulatory inspection compared to forecasted duration.”

“The Sulfur Services segment results were above guidance as the division benefited from strong fertilizer margins and high sulfur production from the Gulf Coast refineries. Results in the Specialty Products segment were in line with guidance as strength in our grease division offset underperformance by the packaged lubricants business. Finally, the Terminalling and Storage segment results were below guidance as a direct result of a $1.5 million casualty loss reserve related to the previously announced crude oil spill from a crude pipeline that connects our Sandyland Terminal to the Smackover refinery.”

SECOND QUARTER 2024 OPERATING RESULTS BY BUSINESS SEGMENT

	Operating Income (Loss) ($M)						Adjusted EBITDA, After Giving Effect to the Exit of the Butane Optimization Business ($M)						Adjusted EBITDA ($M)
	Three Months Ended June 30,
		2024			2023			2024			2023			2024			2023
	(Amounts may not add or recalculate due to rounding)
Business Segment:
Terminalling and Storage	$	3.3		$	4.4		$	8.0		$	9.6		$	8.0		$	9.6
Transportation		8.0			9.0			11.2			12.1			11.2			12.1
Sulfur Services		7.5			5.3			10.6			8.0			10.6			8.0
Specialty Products		4.9			2.5			5.7			5.9			5.7			(0.4	)
Unallocated Selling, General and Administrative Expense		(3.8	)		(3.9	)		(3.8	)		(3.9	)		(3.8	)		(3.9	)
	$	19.9		$	17.3		$	31.7		$	31.8		$	31.7		$	25.5

Terminalling and storage adjusted EBITDA decreased $1.6 million, primarily reflecting the $1.5 million casualty loss reserve related to the crude oil spill from a crude pipeline that connects our Sandyland Terminal to the Smackover refinery. This casualty loss reserve was coupled with higher employee-related expenses across our divisions, offset by increased throughput in our shore-based terminals and underground NGL storage divisions.

Transportation adjusted EBITDA decreased $0.9 million, reflecting higher expenses in our marine division related to a casualty loss reserve of $0.5 million stemming from a bridge allision that occurred in May. This was coupled with lower fleet utilization as a result of both the allision and an acceleration of equipment into dry dock for regulatory inspection. Our marine division was positively impacted during the quarter by higher day rates. The land division experienced increased operating expenses, offset by increased mileage and transportation rates.

Sulfur services adjusted EBITDA increased $2.6 million, primarily reflecting increased fertilizer margins and high sulfur production from the Gulf Coast refineries.

Specialty products adjusted EBITDA, after giving effect to the exit of the butane optimization business, decreased $0.2 million, reflecting decreased margins in our NGL marketing business, offset by higher margins in our grease division.

Unallocated selling, general, and administrative expense decreased $0.1 million, reflecting reduced overhead expenses allocated from Martin Resource Management.

CAPITALIZATION

	June 30, 2024		December 31, 2023
	($ in millions)
Debt Outstanding:
Revolving Credit Facility, Due February 2027 ¹	$	58.0	$	42.5
Finance lease obligations		0.1		—
11.50% Senior Secured Notes, Due February 2028		400.0		400.0
Total Debt Outstanding:	$	458.1	$	442.5

Summary Credit Metrics:
Revolving Credit Facility - Total Capacity	$	150.0	$	175.0
Revolving Credit Facility - Available Liquidity	$	82.9	$	109.0
Total Adjusted Leverage Ratio ²	3.88x		3.75x
Senior Leverage Ratio ²	0.49x		0.36x
Interest Coverage Ratio ²	2.24x		2.19x

¹The Partnership was in compliance with all debt covenants as of June 30, 2024 and December 31, 2023.
²As calculated under the Partnership's revolving credit facility.

RESULTS OF OPERATIONS SUMMARY
(in millions, except per unit amounts)

Period	Net Income		Net Income Per Unit		Adjusted EBITDA		Adjusted EBITDA, After Giving Effect to the Exit of the Butane Optimization Business		Net Cash Provided by Operating Activities		Distributable Cash Flow		Revenues

Three Months Ended June 30, 2024	$	3.8	$	0.09	$	31.7	$	31.7	$	11.8	$	9.5	$	184.5
Three Months Ended June 30, 2023	$	1.1	$	0.03	$	25.5	$	31.8	$	49.5	$	9.7	$	195.6

EBITDA, 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 a table entitled "Reconciliation of EBITDA, 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 for the second quarter 2024 to the Partnership's adjusted EBITDA guidance for the second quarter 2024.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended June 30, 2024. The distribution is payable on August 14, 2024 to common unitholders of record as of the close of business on August 7, 2024. The ex-dividend date for the cash distribution is August 7, 2024.

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.

Investors' Conference Call

Date: Thursday, July 18, 2024
Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)
Dial In #: (888) 330-2384
Conference ID: 8536096
Replay Dial In # (800) 770-2030 – Conference ID: 8536096

A webcast of the conference call along with the Second Quarter 2024 Earnings Summary will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.

About Martin Midstream Partners

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).

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 and (ii) 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), distributable cash flow available to common unitholders (“distributable cash flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("adjusted free cash flow"). Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with U.S. GAAP to analyze our performance.

Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.

EBITDA and 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. 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.

The GAAP measures most directly comparable to adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. 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 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 and adjusted free 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.

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 AND CONDENSED BALANCE SHEETS (Dollars in thousands)

	June 30, 2024			December 31, 2023
	(Unaudited)			(Audited)
Assets
Cash	$	55		$	54
Accounts and other receivables, less allowance for doubtful accounts of $506 and $530, respectively		50,910			53,293
Inventories		41,597			43,822
Due from affiliates		22,151			7,924
Other current assets		10,284			9,220
Total current assets		124,997			114,313

Property, plant and equipment, at cost		939,570			918,786
Accumulated depreciation		(631,219	)		(612,993	)
Property, plant and equipment, net		308,351			305,793

Goodwill		16,671			16,671
Right-of-use assets		63,768			60,359
Investment in DSM Semichem LLC		7,938			—
Deferred income taxes, net		10,174			10,200
Other assets, net		3,179			2,039
Total assets	$	535,078		$	509,375

Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations	$	14		$	—
Trade and other accounts payable		51,874			51,653
Product exchange payables		—			426
Due to affiliates		3,269			6,334
Income taxes payable		1,374			652
Other accrued liabilities		42,178			41,499
Total current liabilities		98,709			100,564

Long-term debt, net		439,397			421,173
Finance lease obligations		62			—
Operating lease liabilities		47,187			45,684
Other long-term obligations		7,589			6,578
Total liabilities		592,944			573,999

Commitments and contingencies
Partners’ capital (deficit)		(57,866	)		(64,624	)
Total liabilities and partners' capital (deficit)	$	535,078		$	509,375





MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2024			2023			2024			2023
Revenues:
Terminalling and storage *	$	22,375		$	21,684		$	44,892		$	42,542
Transportation *		57,676			54,750			115,983			110,473
Sulfur services		3,477			3,357			6,954			6,715
Product sales: *
Specialty products		67,288			78,872			133,613			211,141
Sulfur services		33,715			36,973			63,919			69,294
		101,003			115,845			197,532			280,435
Total revenues		184,531			195,636			365,361			440,165

Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Specialty products *		57,553			71,570			114,783			189,565
Sulfur services *		19,234			25,654			39,633			47,471
Terminalling and storage *		24			25			42			31
		76,811			97,249			154,458			237,067
Expenses:
Operating expenses *		65,358			60,737			129,292			123,482
Selling, general and administrative *		10,701			8,447			19,614			19,619
Depreciation and amortization		12,687			12,547			25,336			25,448
Total costs and expenses		165,557			178,980			328,700			405,616

Other operating income (loss), net		953			673			1,161			285
Operating income		19,927			17,329			37,822			34,834

Other income (expense):
Interest expense, net		(14,377	)		(15,263	)		(28,219	)		(30,920	)
Loss on extinguishment of debt		—			—			—			(5,121	)
Other, net		2			11			18			33
Total other expense		(14,375	)		(15,252	)		(28,201	)		(36,008	)

Net income (loss) before taxes		5,552			2,077			9,621			(1,174	)
Income tax expense		(1,772	)		(996	)		(2,568	)		(2,831	)
Net income (loss)		3,780			1,081			7,053			(4,005	)
Less general partner's interest in net income (loss)		(76	)		(22	)		(141	)		80
Less income (loss) allocable to unvested restricted units		(16	)		(4	)		(28	)		12
Limited partners' interest in net income (loss)	$	3,688		$	1,055		$	6,884		$	(3,913	)

Net income (loss) per unit attributable to limited partners - basic and diluted	$	0.09		$	0.03		$	0.18		$	(0.10	)
Weighted average limited partner units - basic		38,832,222			38,772,266			38,833,039			38,771,037
Weighted average limited partner units - diluted		38,891,375			38,777,600			38,872,192			38,771,037

*Related Party Transactions Shown Below





MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Dollars in thousands, except per unit amounts)

*Related Party Transactions Included Above

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenues:*
Terminalling and storage	$	18,078	$	18,077	$	36,627	$	35,579
Transportation		8,318		7,277		16,919		12,788
Product Sales		123		7,497		252		8,422
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Specialty products		8,368		7,918		14,941		17,428
Sulfur services		2,919		2,644		5,912		5,352
Terminalling and storage		24		25		42		31
Expenses:
Operating expenses		26,501		25,058		52,924		48,885
Selling, general and administrative		8,638		6,556		15,501		15,072





MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT) (Unaudited) (Dollars in thousands)

	Partners’ Capital (Deficit)
	Common Limited				General Partner Amount
	Units	Amount			General Partner Amount			Total
Balances - March 31, 2024	39,001,086	$	(63,115	)	$	1,619		$	(61,496	)
Net income	—		3,704			76			3,780
Cash distributions	—		(195	)		(4	)		(199	)
Unit-based compensation	—		49			—			49
Balances - June 30, 2024	39,001,086		(59,557	)		1,691			(57,866	)

Balances - December 31, 2023	38,914,806	$	(66,182	)	$	1,558		$	(64,624	)
Net income	—		6,912			141			7,053
Issuance of restricted units	86,280		—			—			—
Cash distributions	—		(390	)		(8	)		(398	)
Unit-based compensation	—		103			—			103
Balances - June 30, 2024	39,001,086	$	(59,557	)	$	1,691		$	(57,866	)

	Partners’ Capital (Deficit)
	Common Limited				General Partner Amount
	Units	Amount			General Partner Amount			Total
Balances - March 31, 2023	38,914,806	$	(66,236	)	$	1,559		$	(64,677	)
Net income	—		1,059			22			1,081
Cash distributions	—		(195	)		(4	)		(199	)
Unit-based compensation	—		38			—			38
Balances - June 30, 2023	38,914,806		(65,334	)		1,577			(63,757	)

Balances - December 31, 2022	38,850,750	$	(61,110	)	$	1,665		$	(59,445	)
Net loss	—		(3,925	)		(80	)		(4,005	)
Issuance of restricted units	64,056		—			—			—
Cash distributions	—		(389	)		(8	)		(397	)
Unit-based compensation	—		90			—			90
Balances - June 30, 2023	38,914,806	$	(65,334	)	$	1,577		$	(63,757	)





MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (Dollars in thousands)

	Six Months Ended
	June 30,
		2024			2023
Cash flows from operating activities:
Net income (loss)	$	7,053		$	(4,005	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		25,336			25,448
Amortization of deferred debt issuance costs		1,539			2,435
Amortization of debt discount		1,200			1,000
Deferred income tax expense		26			1,867
Gain on disposition or sale of property, plant and equipment, net		(1,161	)		(285	)
Loss on extinguishment of debt		—			5,121
Non cash unit-based compensation		103			90
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables		2,383			22,619
Inventories		2,031			58,933
Due from affiliates		(14,227	)		5,654
Other current assets		174			5,296
Trade and other accounts payable		523			(19,459	)
Product exchange payables		(426	)		278
Due to affiliates		(3,065	)		(6,641	)
Income taxes payable		722			(215	)
Other accrued liabilities		(1,196	)		1,907
Change in other non-current assets and liabilities		922			(1,269	)
Net cash provided by operating activities		21,937			98,774

Cash flows from investing activities:
Payments for property, plant and equipment		(24,194	)		(17,024	)
Payments for plant turnaround costs		(6,705	)		(661	)
Investment in DSM Semichem LLC		(6,938	)		—
Proceeds from sale of property, plant and equipment		738			4,275
Net cash used in investing activities		(37,099	)		(13,410	)

Cash flows from financing activities:
Payments of long-term debt		(113,000	)		(519,197	)
Payments under finance lease obligations		(1	)		(9	)
Proceeds from long-term debt		128,577			448,489
Payment of debt issuance costs		(15	)		(14,238	)
Cash distributions paid		(398	)		(397	)
Net cash provided by (used in) financing activities		15,163			(85,352	)

Net increase in cash		1			12
Cash at beginning of period		54			45
Cash at end of period	$	55		$	57

Non-cash additions to property, plant and equipment	$	2,641		$	1,679
Non-cash contribution of land to DSM Semichem LLC	$	1,000		$	—





MARTIN MIDSTREAM PARTNERS L.P. SEGMENT OPERATING INCOME (Unaudited) (Dollars and volumes in thousands, except BBL per day)

*Terminalling and Storage Segment*

*Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023*

	Three Months Ended June 30,				Variance			Percent Change
	2024		2023		Variance			Percent Change
	(In thousands, except BBL per day)

Revenues	$	24,402	$	23,906	$	496		2	%
Cost of products sold		24		25		(1	)	(4	)%
Operating expenses		15,522		13,932		1,590		11	%
Selling, general and administrative expenses		820		333		487		146	%
Depreciation and amortization		5,729		5,195		534		10	%
		2,307		4,421		(2,114	)	(48	)%
Other operating income, net		995		25		970		3,880	%
Operating income	$	3,302	$	4,446	$	(1,144	)	(26	)%

Shore-based throughput volumes (gallons)		42,491		42,434		57		—	%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)		6,500		6,500		—		—	%


*Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023*

	Six Months Ended June 30,					Variance			Percent Change
	2024			2023		Variance			Percent Change
	(In thousands, except BBL per day)

Revenues	$	48,687	$	47,825		$	862		2	%
Cost of products sold		42		31			11		35	%
Operating expenses		30,557		28,240			2,317		8	%
Selling, general and administrative expenses		1,102		882			220		25	%
Depreciation and amortization		11,124		10,794			330		3	%
		5,862		7,878			(2,016	)	(26	)%
Other operating income (loss), net		1,097		(324	)		1,421		439	%
Operating income	$	6,959	$	7,554		$	(595	)	(8	)%

Shore-based throughput volumes (gallons)		88,260		85,783			2,477		3	%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)		6,500		6,500			—		—	%



*Transportation Segment*

*Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023*

	Three Months Ended June 30,				Variance			Percent Change
	2024		2023		Variance			Percent Change
	(In thousands)
Revenues	$	61,467	$	58,395	$	3,072		5	%
Operating expenses		47,783		44,285		3,498		8	%
Selling, general and administrative expenses		2,527		1,981		546		28	%
Depreciation and amortization		3,381		3,760		(379	)	(10	)%
		7,776		8,369		(593	)	(7	)%
Other operating income, net		260		647		(387	)	(60	)%
Operating income	$	8,036	$	9,016	$	(980	)	(11	)%


*Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023*

	Six Months Ended June 30,				Variance			Percent Change
	2024		2023		Variance			Percent Change
	(In thousands)
Revenues	$	123,509	$	120,334	$	3,175		3	%
Operating expenses		94,424		90,475		3,949		4	%
Selling, general and administrative expenses		4,727		4,530		197		4	%
Depreciation and amortization		6,857		7,522		(665	)	(9	)%
	$	17,501	$	17,807	$	(306	)	(2	)%
Other operating income, net		366		651		(285	)	(44	)%
Operating income	$	17,867	$	18,458	$	(591	)	(3	)%



*Sulfur Services Segment*

*Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023*

	Three Months Ended June 30,					Variance			Percent Change
		2024		2023		Variance			Percent Change
	(In thousands)
Revenues:
Services	$	3,477		$	3,357	$	120		4	%
Products		33,716			36,973		(3,257	)	(9	)%
Total revenues		37,193			40,330		(3,137	)	(8	)%

Cost of products sold		22,183			28,141		(5,958	)	(21	)%
Operating expenses		2,744			3,186		(442	)	(14	)%
Selling, general and administrative expenses		1,717			962		755		78	%
Depreciation and amortization		2,778			2,756		22		1	%
		7,771			5,285		2,486		47	%
Other operating income (loss), net		(308	)		1		(309	)	(30,900	)%
Operating income	$	7,463		$	5,286	$	2,177		41	%

Sulfur (long tons)		91			123		(32	)	(26	)%
Fertilizer (long tons)		64			73		(9	)	(12	)%
Total sulfur services volumes (long tons)		155			196		(41	)	(21	)%


*Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023*

	Six Months Ended June 30,					Variance			Percent Change
		2024		2023		Variance			Percent Change
	(In thousands)
Revenues:
Services	$	6,954		$	6,715	$	239		4	%
Products		63,920			69,294		(5,374	)	(8	)%
Total revenues		70,874			76,009		(5,135	)	(7	)%

Cost of products sold		44,954			52,090		(7,136	)	(14	)%
Operating expenses		5,684			6,085		(401	)	(7	)%
Selling, general and administrative expenses		3,020			2,579		441		17	%
Depreciation and amortization		5,760			5,433		327		6	%
		11,456			9,822		1,634		17	%
Other operating income (loss), net		(308	)		17		(325	)	(1,912	)%
Operating income	$	11,148		$	9,839	$	1,309		13	%

Sulfur (long tons)		182			197		(15	)	(8	)%
Fertilizer (long tons)		136			134		2		1	%
Total sulfur services volumes (long tons)		318			331		(13	)	(4	)%



*Specialty Products Segment*

*Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023*

	Three Months Ended June 30,				Variance			Percent Change
	2024		2023		Variance			Percent Change
	(In thousands)
Products revenues	$	67,317	$	78,898	$	(11,581	)	(15	)%
Cost of products sold		59,711		74,270		(14,559	)	(20	)%
Operating expenses		26		18		8		44	%
Selling, general and administrative expenses		1,842		1,299		543		42	%
Depreciation and amortization		799		836		(37	)	(4	)%
		4,939		2,475		2,464		100	%
Other operating income, net		6		—		6
Operating income	$	4,945	$	2,475	$	2,470		100	%

NGL sales volumes (Bbls)		540		827		(287	)	(35	)%
Other specialty products volumes (Bbls)		93		90		3		3	%
Total specialty products volumes (Bbls)		633		917		(284	)	(31	)%


*Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023*

	Six Months Ended June 30,					Variance			Percent Change
	2024			2023		Variance			Percent Change
	(In thousands)
Products revenues	$	133,663	$	211,175		$	(77,512	)	(37	)%
Cost of products sold		119,355		198,721			(79,366	)	(40	)%
Operating expenses		51		32			19		59	%
Selling, general and administrative expenses		3,165		3,589			(424	)	(12	)%
Depreciation and amortization		1,595		1,699			(104	)	(6	)%
		9,497		7,134			2,363		33	%
Other operating income (loss), net		6		(59	)		65		110	%
Operating income	$	9,503	$	7,075		$	2,428		34	%

NGL sales volumes (Bbls)		1,162		2,518			(1,356	)	(54	)%
Other specialty products volumes (Bbls)		172		174			(2	)	(1	)%
Total specialty products volumes (Bbls)		1,334		2,692			(1,358	)	(50	)%



*Unallocated Selling, General and Administrative Expenses*

*Comparative Results of Operations for the Three and Six Months Ended June 30, 2024 and 2023*

	Three Months Ended June 30,				Variance			Percent Change		Six Months Ended June 30,				Variance			Percent Change
	2024		2023							2024		2023
	(In thousands)									(In thousands)
Indirect selling, general and administrative expenses	$	3,819	$	3,894	$	(75	)	(2	)%	$	7,655	$	8,092	$	(437	)	(5	)%





Non-GAAP Financial Measures

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2024 and 2023, which represents EBITDA, adjusted EBITDA, adjusted EBITDA after giving effect to the exit of the butane optimization business, distributable cash flow, and adjusted free cash flow:

Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business

	Three Months Ended June 30,						Six Months Ended June 30,
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
	(in thousands)						(in thousands)
Net income (loss)	$	3,780		$	1,081		$	7,053		$	(4,005	)
Adjustments:
Interest expense		14,377			15,263			28,219			30,920
Income tax expense		1,772			996			2,568			2,831
Depreciation and amortization		12,687			12,547			25,336			25,448
EBITDA		32,616			29,887			63,176			55,194
Adjustments:
Gain on disposition or sale of property, plant and equipment		(953	)		(673	)		(1,161	)		(285	)
Loss on extinguishment of debt		—			—			—			5,121
Lower of cost or net realizable value and other non-cash adjustments		—			(3,717	)		—			(12,850	)
Unit-based compensation		49			38			103			90
Adjusted EBITDA	$	31,712		$	25,535		$	62,118		$	47,270
Adjustments:
Less: net loss associated with butane optimization business		—			2,564			—			2,255
Plus: lower of cost or net realizable value and other non-cash adjustments		—		$	3,717			—			12,850
Adjusted EBITDA after giving effect to the exit of the butane optimization business	$	31,712		$	31,816		$	62,118		$	62,375




Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business, Distributable Cash Flow, and Adjusted Free Cash Flow

	Three Months Ended June 30,						Six Months Ended June 30,
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
	(in thousands)						(in thousands)
Net cash provided by operating activities	$	11,828		$	49,510		$	21,937		$	98,774
Interest expense ¹		13,004			13,903			25,480			27,485
Current income tax expense		1,420			306			2,542			964
Lower of cost or net realizable value and other non-cash adjustments		—			(3,717	)		—			(12,850	)
Changes in operating assets and liabilities which (provided) used cash:
Accounts and other receivables, inventories, and other current assets		9,919			(43,135	)		9,639			(91,517	)
Trade, accounts and other payables, and other current liabilities		(3,786	)		7,171			3,442			23,145
Other		(673	)		1,497			(922	)		1,269
Adjusted EBITDA		31,712			25,535			62,118			47,270
Adjustments:
Less: net loss associated with butane optimization business		—			2,564			—			2,255
Plus: lower of cost or net realizable value and other non-cash adjustments		—			3,717			—			12,850
Adjusted EBITDA after giving effect to the exit of the butane optimization business		31,712			31,816			62,118			62,375
Adjustments:
Interest expense		(14,377	)		(15,263	)		(28,219	)		(30,920	)
Income tax expense		(1,772	)		(996	)		(2,568	)		(2,831	)
Deferred income taxes		352			690			26			1,867
Amortization of debt discount		600			600			1,200			1,000
Amortization of deferred debt issuance costs		773			760			1,539			2,435
Payments for plant turnaround costs		(745	)		(432	)		(6,705	)		(661	)
Maintenance capital expenditures		(7,009	)		(7,438	)		(12,211	)		(14,072	)
Distributable cash flow		9,534			9,737			15,180			19,193
Principal payments under finance lease obligations		(1	)		(3	)		(1	)		(9	)
Investment in DSM Semichem LLC		(6,938	)		—			(6,938	)		—
Expansion capital expenditures		(5,450	)		(1,925	)		(11,681	)		(2,682	)
Adjusted free cash flow	$	(2,855	)	$	7,809		$	(3,440	)	$	16,502

¹ Net of amortization of debt issuance costs and discount, which are included in interest expense but not included in net cash provided by (used in) operating activities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240717514885/en/

Sharon Taylor - Executive Vice President & Chief Financial Officer

(877) 256-6644

investor.relations@mmlp.com

Source: Martin Midstream Partners L.P.

FAQ

What was Martin Midstream Partners' (MMLP) net income for Q2 2024?

Martin Midstream Partners reported a net income of $3.8 million for the second quarter of 2024.

How much was MMLP's adjusted EBITDA for Q2 2024?

MMLP's adjusted EBITDA for Q2 2024 was $31.7 million, exceeding guidance by $0.5 million.

What is the quarterly cash distribution declared by MMLP for Q2 2024?

MMLP declared a quarterly cash distribution of $0.005 per common unit for the quarter ended June 30, 2024.

How did MMLP's Sulfur Services segment perform in Q2 2024?

The Sulfur Services segment's adjusted EBITDA increased by $2.6 million, benefiting from increased fertilizer margins and high sulfur production from Gulf Coast refineries.

What was MMLP's total adjusted leverage ratio as of June 30, 2024?

MMLP's total adjusted leverage ratio was 3.88 times as of June 30, 2024.

Martin Midstream Partners Reports Second Quarter 2024 Financial Results and Declares Quarterly Cash Distribution

Insights

FAQ

What was Martin Midstream Partners' (MMLP) net income for Q2 2024?

How much was MMLP's adjusted EBITDA for Q2 2024?

What is the quarterly cash distribution declared by MMLP for Q2 2024?

How did MMLP's Sulfur Services segment perform in Q2 2024?

What was MMLP's total adjusted leverage ratio as of June 30, 2024?

NASDAQ:MMLP

MMLP Rankings

MMLP Latest News

MMLP Stock Data

Trending News

Martin Midstream Partners Reports Second Quarter 2024 Financial Results and Declares Quarterly Cash Distribution

Insights

Financial Analyst neutral

Market Research Analyst neutral

FAQ

What was Martin Midstream Partners' (MMLP) net income for Q2 2024?

How much was MMLP's adjusted EBITDA for Q2 2024?

What is the quarterly cash distribution declared by MMLP for Q2 2024?

How did MMLP's Sulfur Services segment perform in Q2 2024?

What was MMLP's total adjusted leverage ratio as of June 30, 2024?

NASDAQ:MMLP

MMLP Rankings

MMLP Latest News

MMLP Stock Data