Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — MLPA Investor Conference 2017
42 slides from Martin Midstream Partners L.p's conference presentation, Jun 1, 2017
Slide 1: MLPA Investor Conference
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 2017 M L PA I N V E S T O R CONFERENCE JUNE 1, 2017
Slide 2: Use of Non-GAAP Financial Measures
MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 USE OF NON-GAAP FINANCIAL M Epresentation This ASURE S certain non-GAAP financial measures such as EBITDA and Adjusted EBITDA. includes These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for T E
Slide 3: Forward Looking Statements
MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 F O R WA R D L O O K I N G S TAT E M E N T S Statements included that are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance or assumptions or forecasts
Slide 4: Welcome & MMLP Overview
WELCOME & MMLP OVERVIEW
Slide 5: Overview
MARTIN MIDSTREAM PARTNERS L.P. OVERVIEW (MML P) OV E RVIE W • NASDAQ Listed: MMLP • Formed October 31, 2002 • T E X T MMLP is a publicly traded, diversified master limited G O E S H E R E S U B T E X T partnership with operations including: I S P L A C E D H E R E • Terminalling & Storage • Natural
Slide 6: Key Investment Highlights
MARTIN MIDSTREAM PARTNERS L.P. KEY INVESTMENT HIGHLIGHTS Fee-Based • Majority (nearly 70%) of cash flows generated from fee-based contracts which include take T EorXpay, T reservation G O E S and H Eminimum R E volume commitments Contracts S U B T E X T I S P L A C E D H E R E Fully Integrated, • Di
Slide 7: MMLP Asset Locations – All Segments
MARTIN MIDSTREAM PARTNERS L.P. OVERVIEW M M L P A SS E T L O C AT I O N S – A L L SEGMENTS T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 7
Slide 8: Strong Fee Based Contract Mix
MARTIN MIDSTREAM PARTNERS L.P. STRONG FEE BASED CONTRACT MIX Natural Gas Services • Fee-based, multi-year natural gas storage contracts (weighted average T E X T life approximately 4 years as of December 31, 2016) G O E S H E R E • S U Btariffs Fee-based, regulated common carrier T E X(WTLPG) T I S
Slide 9: High Quality Long-Term Customer Base
MARTIN MIDSTREAM PARTNERS L.P. H I G H Q U A L I T Y L O N G -T E R M C U S T O M E R BASE • Long-term customer relationships are a key driver of our success • T E X T G O E S Full value chain solutions for handling and logistics H E R E • S U B Tmost Customers include some of the largest, E X T I S
Slide 10: Martin Resource Management Corporation Overview
MARTIN RESOURCE MANAGEMENT CORPORATION OVERVIEW ( MRMC) OVERVIEW • Based in Kilgore, TX, since 1951, MRMC is a leading independent provider of storage, manufacturing, marketing, and distribution services to energy, petrochemical and other industrial concerns • Approximately 1,900 employees T E X T G
Slide 11: Strong General Partner Support
MARTIN MIDSTREAM PARTNERS L.P. S T R O N G G E N E R A L PA RT N E R S U P P O R T • MRMC’s operations support MMLP’s cash flow • MRMC’s distinct assets and business units are complementary to MMLP T E X T G O E S H E R E • S U B Twith MRMC’s contractual relationships E X T I S P L A C E D H E R E M
Slide 12: 2017E Guidance By Segment
MARTIN MIDSTREAM PARTNERS L.P. 2 0 1 7 E G U I D A N C E BY S E G M E N T T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E Natural Gas Terminalling & Services $76.9 2017 Storage $59.1 Sulfur Services Marine $29.8 $157.4 million Adjusted Transportation $7.2 EBITDA ($173.0 million before
Slide 13: Operational Overview
Ar y pa) é : we ae aa eM _ gn att: SBS BSE Sameer _ OPERATIONAL OVERVIEW
Slide 14: Natural Gas Services Overview
MARTIN MIDSTREAM PARTNERS L.P. N AT U R A L G A S S E R V I C E S O V E R V I E W • Cardinal Gas Storage operates approximately 50 billion cubic feet of natural gas storage capacity across four facilities throughout northern Louisiana and Mississippi. • T E X T G O E S H E R E MMLP distributes NGLs
Slide 15: Cardinal Gas Storage
MARTIN MIDSTREAM PARTNERS L.P. – NATURAL GAS SERVICES CARDINAL GAS STORAGE Firm Contracted/Fee-Based Storage Cardinal Contract Summary Model • Firm contracted model for natural gas storage Working Gas T E X T G O E S E R E Capacity HType (bcf) Currently Contracted Years with interruptible service up
Slide 16: Cardinal Gas Storage Asset Locations
MARTIN MIDSTREAM PARTNERS L.P. – NATURAL GAS SERVICES C A R D I N A L G A S S T O R A G E A SS E T L O C AT I O N S T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E Arcadia Gas Storage Salt dome facility (Arcadia, LA) – 16.3 bcf Perryville Gas Storage Salt dome facility (Delhi, LA) – 9.
Slide 17: Butane Optimization
MARTIN MIDSTREAM PARTNERS L.P. – NATURAL GAS SERVICES B U TA N E O P T I M I Z AT I O N Butane Optimization Butanes Adjusted EBITDA • Refineries adjust the vapor pressure of $30.0 T E X T G O E S H E R E $23.5 $26.1 gasoline to meet seasonal EPA standards $25.0 S U B T E X T I S $19.9 P L A C E D H
Slide 18: West Texas LPG Pipeline L.P. (WTLPG)
MARTIN MIDSTREAM PARTNERS L.P. – NATURAL GAS SERVICES W E S T T E X A S L P G P I P E L I N E L . P. ( W T L P G ) • The WTLPG system is approximately 2,300 miles of Y-grade pipeline from Eastern New Mexico to Mt. Belvieu, TX • T E is MMLP owns 20% interests in WTLPG (OKS X owner/operator T G O E S
Slide 19: NGLs & Propane
MARTIN MIDSTREAM PARTNERS L.P. – NATURAL GAS SERVICES N G L s & P R O PA N E NGL Propane • Assets include 200-mile East Texas Pipeline • Wholesale propane distribution to T E X T G O E S H E R E transporting Y-grade from Kilgore, TX to approximately 100 regional customers S U B T E X T I S P L A C E
Slide 20: Terminalling & Storage Overview
MARTIN MIDSTREAM PARTNERS L.P. TERMINALLING & STORAGE OVERVIEW • MMLP operates 40 terminal facilities with an aggregate storage capacity of 3.7 million barrels • These facilities provide storage, refining, blending, packaging and handling services of petroleum T E X T G O E S products and by-product
Slide 21: Specialty Terminals
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S P E C I A LT Y T E R M I N A L S Specialty Terminals Overview • Network of 14 terminals which facilitate Tthe E X T G O E S H E R E movement of petroleum products and by- S U B T E X T I S P L A C E D H E R E products and petrochemicals from
Slide 22: Expertise in Hard to Handle Product Logistics
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S P E C I A LT Y T E R M I N A L S Expertise In “Hard to Handle” Product and By-Product Logistics Specialized Sites T E X T G O E S Specialized H E R E Sites (continued) • Hondo Asphalt Terminal S U B T E X T I S P • LBeaumont A C E D Neches H
Slide 23: Marine Shore-Based Terminals
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE MARINE SHORE-BASED TERMINALS Gulf Coast Fuel and Lubricant Distribution Network • 26 terminals along the Gulf Coast from Blakeley T E X T • E G O Fee-based S H Econtract R E structure provides stable Island, AL to Port O’Connor, TX cash flow S
Slide 24: Smackover Refinery
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S M A C KO V E R R E F I N E RY Specialized Naphthenic Refinery • 7,700 bpd capacity naphthenic lube refinery T E X T G• OFee-based E S H contract E R E structure provides stable cash located in Smackover, AR flow S U B T E X T I S P L A C E D
Slide 25: Martin Lubricants
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE M A RT I N L U B R I C A N T S Lubricant Blending & Packaging • Specialty lubricant product blending and T E X T G O E S H E R E packaging assets located within MMLP’s S U B T E X T I S P L A C E D H E R E Smackover Refinery in Smackover, AR in
Slide 26: Sulfur Services Overview
MARTIN MIDSTREAM PARTNERS L.P. SULF UR SE RVICE S OVE RV IE W • Molten sulfur, a refinery by-product, is aggregated, stored, prilled and transported through MMLP’s integrated value chain systems • T E X T G O E S H E R E MMLP manufactures and markets sulfur-based fertilizers and related sulfur produ
Slide 27: Integrated Value Chain
MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES I N T E G R AT E D VA L U E C H A I N • Provides transportation, processing and marketing services necessary to move product from producer to consumer • T E X T G O E S H E R E Intermodal transportation offers multiple fee opportunities for MMLP S U B
Slide 28: Fertilizer
MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES F E RT I L I Z E R Fertilizer Overview Supply/Demand • MMLP manufactures and markets sulfur-based • The single largest factor influencing fertilizer T E X T fertilizers and related sulfur products for G O E S H E in demand R the E U.S. is corn acres p
Slide 29: Molten Sulfur
MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES M O LT E N S U L F U R Assets Capacity Products Handling and Transportation Agreement Offshore Tank 10,450 Long Molten • MMLP handles molten sulfur and fulfills Barge Tons Sulfur T E X T G O E S H E R E customer needs by transporting product from Offs
Slide 30: Prilled Sulfur
MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES PRILLED SULFUR Prilling Agreements Termin Location Productio Products al n Stored Capacity • Refiners pay MMLP minimum reservation fees, plus operating fees for prilling services T E X T G O Neches E S H Beaumont, E R E 5,500 Molten, prilled TX metric
Slide 31: Marine Transportation Overview
MARTIN MIDSTREAM PARTNERS L.P. M A R I N E T R A N S P O R TAT I O N O V E R V I E W • MMLP utilizes a fleet of inland and offshore tows to provide marine transportation of petroleum products and by-products • T E X T G O E S H E R E MMLP’s marine transportation business operates coastwise along the
Slide 32: Marine Transportation Assets
MARTIN MIDSTREAM PARTNERS L.P. – MARINE TRANSPORTATION A SS E T S Marine Transportation Profitability Drivers • 35 inland marine tank barges • Supply of available marine equipment • 19 inland push-boats T E X T G O E • SRefinery H E R E utilization and runs • S U B T E X T I S P• L A C E D for Deman
Slide 33: Recent Acquisition
RECENT ACQUISITION
Slide 34: Hondo Asphalt Terminal Drop-Down
MARTIN MIDSTREAM PARTNERS L.P. H O N D O A S P H A LT T E R M I N A L D R O P - D O W N • $36.0 million purchase price • $27.4 million cash at closing, with $8.6 million remaining to be spent over the next few months T E X T G O E S H E R E • Expect substantial completion by end of second quarter an
Slide 35: Hondo Asphalt Terminal Drop-Down
MARTIN MIDSTREAM PARTNERS L.P. H O N D O A S P H A LT T E R M I N A L D R O P - D O W N T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 35
Slide 36: Financial Foundation
F I N A N C I A L F O U N D AT I O N
Slide 37: Capitalization
MARTIN MIDSTREAM PARTNERS L.P. C A P I TA L I Z AT I O N 12/31/2016 3/31/2017 DEBT T E X T Revolving Credit Facility Due G O$443.0 E S H E R$385.0 E 2020 S U B T E X T I S P L A C E D H E R E Senior Secured Debt $443.0 $385.0 Senior Notes Due February 2021 $373.8 $373.8 Total Debt $816.8 $758.8 Part
Slide 38: Appendix: Partnership Guidance and GAAP Reconciliations
A P P E N D I X : PA R T N E R S H I P G U I D A N C E A N D G A A P R E C O N C I L I AT I O N S
Slide 39: Adjusted EBITDA and GAAP Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. A D J U S T E D E B I T D A A N D G A A P R E C O N C I L I AT I O N Natural Terminalli Marine Sulfur Interest 2016 YE2016 Gas Services ng & Storage Services Transporta tion SG&A Expense Actual Net income (loss) $43.1 $44.1 $26.8 $(19.8) $(16.4) $(46.1) $31.7 Interest
Slide 40: MMLP 2Q 2017E Adjusted EBITDA
$ millions MMLP 2Q 2017E ADJUSTED EBITDA Natural Gas Services Terminalling & Storage Sulfur Services Marine Transportation SG&A G Expense UIDAN Interest CE 2Q2017E Net income (loss) $4.6 $2.9 $8.3 $(0.2) $(4.3) $(11.0) $0.3 Interest expense add back -- -- -- -- -- $11.0 $11.0 Depreciation and amorti
Slide 41: 2017E Adjusted EBITDA Guidance Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2017E ADJUSTED EBITDA GUIDANCE R E C O N C I L I AT I O N Natural Gas Terminalli ng Sulfur Marine Transporta SG&A Interest 2017E Services Expense Services & Storage tion Net income (loss) $47.5 $9.8 $21.5 $(1.2) $(17.1) $(45.6) $14.9 Interest expense add back -- T E X
Slide 42: Martin Midstream Partners
2 0 1 7 | M A R T I N M I D S T R E A M P A R T N E R S S U B T E X T I S P L A C E D H E R E
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