Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — 7th Annual Wachovia Pipeline & MLP Symposium (December 2008)
20 slides from Martin Midstream Partners L.p's conference presentation, Dec 9, 2008
Slide 1: Martin Midstream Partners L.P. 7th Annual Wachovia Pipeline & MLP Symposium
Martin Midstream Partners L.P. 7th Annual Wachovia Pipeline & MLP Symposium December 9, 2008 NASDAQ: MMLP
Slide 2: Forward-Looking Statements
3 Forward-Looking Statements 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 related thereto), are forward-looking statements. These statements can be
Slide 3: Management Representatives
5 Management Representatives Ruben Martin President & Chief Executive Officer Bob Bondurant Chief Financial Officer
Slide 4: MMLP Snapshot
7 MMLP Snapshot Diversified MLP with operations in Natural Gas Services Terminalling and Storage Marine Transportation Sulfur Services Consistent distribution growth with attractive yield Eighth consecutive quarterly distribution increase Distribution growth of 10.3% over the last year Total unit co
Slide 5: Natural Gas Services Overview
9 Natural Gas Services Overview The Natural Gas Services segment includes Gas gathering and processing in East Texas & the Texas Gulf Coast ~47% of 2009 volumes hedged Wholesale natural gas liquids (NGLs) distribution and storage Wholesale and retail propane distribution Key Natural Gas Services ass
Slide 6: Terminalling & Storage Overview
11 Terminalling & Storage Overview The Terminalling & Storage segment includes Shorebase Terminals 13 "shorebase" terminals across the Texas and Louisiana Gulf Coast Approximately 170 tanks with aggregate storage capacity of approximately 397,000 bbls Customer base primarily offshore E&P and oilfiel
Slide 7: Marine Transportation Overview
13 Marine Transportation Overview The Marine Transportation segment includes Inland division 37 inland tank barges 15 barges with <20,000 bbl capacity 22 barges with 20,000-30,000 bbl capacity Transport crude oil, fuel oil, asphalt, etc. 18 inland push boats with 800 - 3,800 hp Operates primarily in
Slide 8: Sulfur Services Overview
15 Sulfur Services Overview The Sulfur Services segment includes Legacy Fertilizer business Six sulfur-based fertilizer production plants Over 380,000 tons/yr of production capacity Located in Texas, Illinois and Utah Nutrient sulfur, ammonium sulfate, etc. One emulsified industrial sulfur plant 150
Slide 9: MMLP Midstream Value Chain
17 MMLP Midstream Value Chain Marine Transportation Terminalling & Storage Natural Gas Services Wellhead Crude Oil & Natural Gas Refining & Processing Storage Consumer Sulfur Services Wellhead Refined / Processed Products
Slide 10: Business Profitability Drivers
19 Business Profitability Drivers Drilling technologies East Texas drilling activity (sustainable commodity prices) Fractionation capability Contract mix Gulf of Mexico drilling activity Drilling technologies Commodity prices Gulf Coast labor costs Domestic and international fertilizer demand Heavy
Slide 11: Diversified Cash Flow Profile
21 Diversified Cash Flow Profile Percentages in segments based on estimated contribution to 2009 Adjusted EBITDA before indirect selling, general and administrative expense. See page 20 for definition of Adjusted EBITDA. 20-30% 20-30% 20-25% 20-25% Natural Gas Services Terminalling & Storage Marine
Slide 12: Limited Direct Commodity Price Exposure
23 Limited Direct Commodity Price Exposure MMLP has a diversified business mix with limited direct commodity price exposure Natural Gas Services Adjusted EBITDA estimated at 20-30% of MMLP Typical 12-month forward volumes hedged around 50-75% $1.00 change in natural gas prices results in $575,000 im
Slide 13: Areas of Operation
Areas of Operation
Slide 14: Alignment of Interests
27 Alignment of Interests Public 29.2% LP (Common) 5.7% LP (Subordinated) 65.1% LP (Common) General Partner owns a 34.9% LP interest and a 2.0% GP interest Subordination ends in 2009(1) 100% 2.0% GP + IDRs (1) 850,674 subordinated units convert to common units in 4Q 2009. Martin Resource Management
Slide 15: 2009 Growth Capex Program
29 2009 Growth Capex Program MMLP has budgeted up to $75 million for organic growth projects in 2009 ~$15 million of 2009 budget is remaining capital to be spent under the 2008 growth capex program The amount and timing of the 2009 projects are dependent on MMLP's access to capital through its exist
Slide 16: Plan for Funding 2009 Growth Capex
31 Plan for Funding 2009 Growth Capex As of 9/30/08, ~$45 million of availability with potential increased availability through asset sales: MMLP pursuing up to $65 million in asset sales Assets are non-core with little-to-no impact to historical distributable cash flow Potential $20-$30 million res
Slide 17: Improving Distribution Growth & Coverage
33 Improving Distribution Growth & Coverage Most recent quarterly distribution increase represents 10.3% year-over-year growth Total unit coverage continues to improve (currently at 1.17x)(1) Eight consecutive increases in quarterly distribution 10.3% Distribution Growth Quarterly Distribution TTM T
Slide 18: Martin Resource Management Corporation (MRMC)
35 Martin Resource Management Corporation ("MRMC") is a leading provider of transportation, terminalling, marketing and logistics management services for the energy and petrochemical industries The predecessor to MRMC was founded in 1951 by R.S. Martin, Jr. and MRMC currently employs over 1,800 peop
Slide 19: Cardinal Gas Storage Partners (CGSP)
37 CGSP is a joint venture with Energy Capital Partners that is focused on building, owning and operating North American natural gas storage facilities Our General Partner MRMC contributed its Arcadia Gas Storage project to CGSP in May 2008 CGSP has disclosed three projects that are in early phases
Slide 20: EBITDA definition
39 MMLP calculates EBITDA as follows: net income (as reported in its Consolidated Statements of Operations) plus interest expense (as reported in its Consolidated Statements of Operations), less equity in earnings of unconsolidated entities (as reported in its Consolidated Statements of Operations),
Martin Midstream Partners — 7th Annual Wachovia Pipeline & MLP Symposium (December 2008) on 6ix