Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — Wells Fargo 22nd Annual Midstream & Utilities Symposium 2023
29 slides from Martin Midstream Partners L.p's conference presentation, Dec 6, 2023
Slide 1: Wells Fargo 22nd Annual Midstream & Utilities Symposium
Wells Fargo 22nd Annual Midstream & Utilities Symposium MARTI N MIDSTREAM PARTNERS December 6-7, 2023
Slide 2: Disclaimers and Company Information
Disclaimers and Company Information NASDAQ Ticker MMLP 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 Unit Price (1) $2.58 1995. These
Slide 3: Partnership Overview
PARTNERSHIP OVERVIEW (A) MARTIN MIDSTREAM
Slide 4: Martin Midstream (Nasdaq: MMLP) at a Glance
Martin Midstream (Nasdaq: MMLP) at a Glance Diversified Specialty Services Midstream Business Strategically Located Along the Gulf Coast with Operations in Four Key Business Segments Key Stats • MMLP provides specialty services to major and independent oil Terminalling & Storage and gas companies in
Slide 5: Investment Highlights
Investment Highlights Strategically Located Asset Base • Refinery service assets located throughout the U.S Gulf Coast refinery and chemical complex • Long-standing customer relationships with PADD 3 refinery operators and service providers Execution of Financial Strategy • Focus on core business se
Slide 6: Strategically Located Throughout the U.S. Gulf Coast Refinery & Chemical Complex
Strategically Located Throughout the U.S. Gulf Coast Refinery & Chemical Complex PADD 3 > 50% of U.S. Refining Capacity MMLP PADD 3 Refinery Coverage Last 6 Months Average Operating Capacity MMLP Smackover Refinery HQ: Kilgore, TX MMLP PADD 3 Refinery Customer Locations Other PADD 3 Refinery Locatio
Slide 7: Diversified Business with Long-Standing Customer Relationships
Diversified Business with Long-Standing Customer Relationships Terminalling & Transportation Sulfur Specialty Products Storage • Provides storage, • Tank truck transportation • Manufactures and • Blends and packages refining, and handling services for the markets sulfur-based agricultural, automotiv
Slide 8: Financial Strategy: Repositioned Asset Base to Focus on Core Business Segments
Financial Strategy: Repositioned Asset Base to Focus on Core Business Segments • Over the last 5 years, MMLP has successfully completed several non-core asset sales to simplify its business model and focus on core business segments and long-term customers along the U.S. Gulf Coast • Exited Natural G
Slide 9: Cash Flow Stability from Strong Fee-Based Contracts with Limited Commodity Exposure
Cash Flow Stability from Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown 2023E Adjusted EBITDA(1) Service & Fixed Margin Based EBITDA Protection from Fee EBITDA Commodity Volume-Risk Price-Risk Price Volatility Smackover Refinery Specialty Terminals Terminalling & Storag
Slide 10: JV to Produce Electronics Level Sulfuric Acid for Chip Manufacturing
JV to Produce Electronics Level Sulfuric Acid for Chip Manufacturing Project ELSA Overview JV Ownership Overview Samsung DSM Semichem LLC (“DSM”) is a JV between Dongjin USA, Inc. (“DJ”), Samsung Martin Dongjin C&T Opportunity C&T America, Inc. (“SCT”) and MMLP for the construction of an electroni
Slide 11: Experienced and Incentivized Management Team & Strong Parent Support
Experienced and Incentivized Management Team & Strong Parent Support Martin Resource Management Corporation (“MRMC”) Martin Key has significantly assisted in MMLP’s growth and is Resource Operating committed to the Partnership Management 100% Subsidiaries Corporation ─ MRMC has provided over $552
Slide 12: Valuation Upside
Valuation Upside Enterprise Value 2023E ($mm) MMLP EV 2023E vs. Peers(2) Units 38.9 Unit Price $2.58 Market Capitalization $100.4 2023E Pro Forma Debt $454.7 2023E Pro Forma Enterprise Value $555.1 2023E Adjusted EBITDA $100.3 Less: Butane Optimization $15.1 2023E Adjusted EBITDA, after giving effec
Slide 13: Operating Segment Overview
OPERATING SEGMENT OVERVIEW (A) MARTIN MIDSTREAM
Slide 14: Terminalling & Storage – Operating Overview
Terminalling & Storage – Operating Overview • Operates 1 naphthenic lube refinery, 21 terminal facilities with aggregate storage capacity of 2.6mm barrels and 2.1mm barrels of underground NGL storage Smackover Refinery Fee-based 7,700 bpd capacity naphthenic lube Refined Products Napthenic Crude Oil
Slide 15: Terminalling & Storage – Strategy
Terminalling & Storage – Strategy Segment Strategy Adjusted Segment EBITDA ($mm)(1) (2) • Well positioned for energy export projects at the Beaumont, TX terminals • Upside for underutilized tanks at the Beaumont, TX terminal • Capitalize on any increase in Gulf of Mexico drilling Key Revenue Drivers
Slide 16: Transportation – Operating Overview
Transportation – Operating Overview • Tank truck and marine transportation for the petroleum, petrochemical and chemical industries Land Transportation Service-based tank truck transportation Products Handled catering to petroleum, petrochemical, • Molten Sulfur and chemical industries • General Che
Slide 17: Transportation – Strategy
Transportation – Strategy Segment Strategy Adjusted Segment EBITDA ($mm)(1) • Logistics demand driven by refinery utilization and expansion of chemical plants on the Gulf Coast • Expand services in the Land Transportation segment to drive fleet optimization • Marine Transportation demand escalating
Slide 18: Sulfur – Operating Overview
Sulfur – Operating Overview • Stores and prills molten sulfur, manufactures and markets sulfur-based fertilizers and related sulfur products Fertilizer Margin-based contracts, purchases molten Molten Sulfur Fertilizer Products sulfur from refineries as feedstock to convert • Ammonium to fertilizer S
Slide 19: Sulfur – Strategy
Sulfur – Strategy Segment Strategy Adjusted Segment EBITDA ($mm) (1) (2) • Largest factor influencing sulfur-based fertilizers in the U.S. is corn acres planted • As of September 30, 2023, the USDA’s baseline projection for total acres of corn planted in the United States is 94.9 million for 2023, a
Slide 20: Specialty Products – Operating Overview
Specialty Products – Operating Overview • Marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease Lubricants & Grease Lubricants/ Grease Margin-based purchases base oil from 3rd parties and • Branded/ Privat
Slide 21: Specialty Products – Strategy
Specialty Products – Strategy Segment Strategy Adjusted Segment EBITDA ($mm)(1) • Seasonal summer/winter propane price differential • Cost plus feedstock for petrochemical demand • Growth in Grease business with limited capital requirements • Exited seasonal butane business reducing working capital
Slide 22: Appendix
APPENDIX (A) MARTIN MIDSTREAM
Slide 23: Performance Metrics
Performance Metrics Revenue ($mm) PF Adjusted EBITDA ($mm)(1) (1) Distributable & Free Cash Flow ($mm)(2) Capital Expenditures ($mm) (1) PF Covenant Compliance EBITDA calculated in accordance with Revolving Credit Facility based on lender compliance certificates, pro forma for acquisitions, divestit
Slide 24: Credit Profile
Credit Profile Total Debt ($mm) Total Debt/PF Covenant Compliance EBITDA(1) Impact of COVID 19 • Decrease in refinery utilization negatively impacts EBITDA Debt Maturity Schedule ($mm)(2) PF Covenant Compliance EBITDA/Adj. Interest Expense(3) No Near-Term Maturities (1) Pro Forma Covenant Compliance
Slide 25: MMLP 2023E Adjusted EBITDA Guidance
MMLP 2023E Adjusted EBITDA Guidance Transportation 1Q23A 2Q23A 3Q23A 4Q23E 2023E Specialty Products 1Q23A 2Q23A 3Q23A 4Q23E 2023E Land $10.7 $8.7 $6.7 $7.3 $33.3 Lubricants $2.3 $2.4 $3.6 $1.9 $10.2 Marine $2.6 $3.5 $2.8 $4.0 $12.8 Grease $2.3 $2.2 $2.8 $1.8 $9.1 Total Transportation $13.2 $12.1 $9.
Slide 26: Capitalization
Capitalization 9/30/2023 12/31/22 (1) Cash $0.1 $0.0 Cash & Equivalents $0.1 $0.0 Revolving Credit Facility(1) $62.5 $171.0 Finance Leases $0.0 $0.0 Secured Debt $62.5 $171.0 11.50% Senior Secured Notes Due February 2028 $400.0 $0.0 10.00% Senior Secured Notes Due February 2024 $0.0 $53.8 11.50% Sen
Slide 27: MMLP Adjusted & Covenant Compliance Consolidated EBITDA Reconciliation
MMLP Adjusted & Covenant Compliance Consolidated EBITDA Reconciliation 2020 2021 2022 Net loss $(6.8) $(0.2) $(10.3) Interest expense $46.2 $54.1 $53.7 Depreciation and amortization $61.5 $56.8 $56.2 Income tax expense $1.7 $3.4 $7.9 EBITDA $102.6 $114.1 $107.5 (Gain) loss on sale of property, plant
Slide 28: MMLP Adjusted Segment EBITDA Reconciliation
MMLP Adjusted Segment EBITDA Reconciliation 2020A 2021A 2022A 2023E Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Terminalling & Storage Smackover Refinery $18.0 $14.4 $14.1 $17.9 Specialty Terminals $12.4 $12.0 $10.8 $12.8 Shore-Based Terminals $1.8 $0.5 $1.1 $3.5 NGL Underground
Slide 29: Martin Midstream Partners Contact Information
Martin Midstream Partners 4200 B Stone Road Kilgore, Texas 75662 903.983.6200 www.MMLP.com
Martin Midstream Partners — Wells Fargo 22nd Annual Midstream & Utilities Symposium 2023 on 6ix