Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — 2008 MLP Investor Conference
23 slides from Martin Midstream Partners L.p's conference presentation, May 22, 2008
Slide 1: Martin Midstream Partners L.P. 2008 MLP Investor Conference
Martin Midstream Partners L.P. 2008 MLP Investor Conference May 22, 2008 NASDAQ: MMLP
Slide 2: Forward-Looking Statements
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 id
Slide 3: Management Representative
Management Representative Ruben Martin President & Chief Executive Officer
Slide 4: MMLP Snapshot
MMLP Snapshot Diversified MLP with operations in Natural Gas Services Terminalling and Storage Marine Transportation Sulfur Services Consistent distribution growth with attractive yield Sixth consecutive quarterly distribution increase Distribution growth of 12.5% over the last year Improving total
Slide 5: Natural Gas Services Overview
Natural Gas Services Overview The Natural Gas Services segment includes Natural gas gathering and processing in East Texas & the Texas Gulf Coast Wholesale natural gas liquids (NGLs) distribution and storage Wholesale and retail propane distribution Key Natural Gas Services assets include Waskom Pla
Slide 6: Terminalling & Storage Overview
Terminalling & Storage Overview The Terminalling & Storage segment includes Shorebase Terminals 13 "shorebase" terminals across the Texas and Louisiana Gulf Coast Approximately 150 tanks with aggregate storage capacity of over 390,000 bbls Customer base primarily offshore E&P and oilfield service co
Slide 7: Marine Transportation Overview
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 th
Slide 8: Sulfur Services Overview
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 150,00
Slide 9: MMLP Midstream Value Chain
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
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 ind
Slide 11: Diversified Cash Flow Profile
Diversified Cash Flow Profile Percentages in segments based on estimated contribution to 2008 Adjusted EBITDA before indirect selling, general and administrative expense. 25-30% 20-25% 20-25% 20-25% Natural Gas Services Terminalling & Storage Marine Transportation Sulfur Services
Slide 12: Areas of Operation
Areas of Operation
Slide 13: Diversity with Leverage to Growth
Diversity with Leverage to Growth 3/31/08 2002 MMLP has developed into a diversified MLP with increasing emphasis on business lines with greater leverage to growth Acquisition of Prism in 2005 marked our successful entry into the growing East Texas market for natural gas gathering and processing Acq
Slide 14: Alignment of Interests
Alignment of Interests Public 23.5% LP (Common) 11.5% LP (Subordinated) 65.1% LP (Common) General Partner owns a 34.9% LP interest and a 2.0% GP interest Subordination until 2009(1) 100% 2.0% GP + IDRs (1) 850,672 subordinated units convert annually to common units through 2009. Martin Resource Mana
Slide 15: $100+ Million 2008 Growth Capex Program
$100+ Million 2008 Growth Capex Program MMLP has budgeted approximately $108 million for organic growth projects in 2008 The major projects for 2008 include the following: Marine New Build Program ($40-45 million) Mont Belvieu Railrack Expansion ($20-25 million) Various Prism-related Upgrades and De
Slide 16: Marine New Build Program
Marine New Build Program MMLP is currently upgrading and expanding its current inland and offshore fleet to meet the demands of its customers MMLP expects to spend approximately $50 million on new build marine equipment over the next two years ($40 million in 2008; $10 million in 2009) Six 30,000 bb
Slide 17: Woodlawn Acquisition Review
$33 million acquisition closed in May 2007 30 MMcfd processing capacity, 135 miles of gathering pipe, 36 miles of condensate pipe and 9 miles of residue pipe First eight months annualized multiple of approximately 5.6x First quarter 2008 negatively impacted by new, high pressure gas wells coming onl
Slide 18: Improving Distribution Growth & Coverage
Improving Distribution Growth & Coverage Most recent quarterly distribution increase represents 12.5% year-over-year growth Total unit coverage continues to improve (currently at 1.23x) Six consecutive increases in quarterly distribution 12.5% Distribution Growth Quarterly Distribution TTM Total Uni
Slide 19: Conservative Balance Sheet
Conservative Balance Sheet Debt / Total Capitalization = 53%; Debt / Adjusted EBITDA of <3.5x(1) Exercised $75 million accordion feature in December 2007 As of 3/31/08, ~$70 million of availability for execution of remaining 2008 organic growth plan (1) See page 21 for definition of Adjusted EBITDA.
Slide 20: Martin Resource Management Corporation (Our General Partner)
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 people
Slide 21: Formation of Cardinal Gas Storage Partners LLC
MRMC recently announced the formation of Cardinal Gas Storage Partners LLC CGSP is a 50:50 joint venture with Energy Capital Partners that is focused on development, construction, operation and management of natural gas storage facilities across North America Our General Partner MRMC contributed its
Slide 22: EBITDA & Adjusted EBITDA Reconciliation
EBITDA & Adjusted EBITDA Reconciliation Figures in thousands 2003 2004 2005 2006 2007 Net income $11,981 $12,326 $13,880 $22,243 $24,939 Adjustments to reconcile net income to adjusted EBITDA: Interest expense 2,001 3,326 6,909 12,466 14,533 Debt prepayment premium - - - 1,160 - Equity in earnings o
Slide 23: EBITDA Definition
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), plus debt prepayment premiums (as reported in its Consolidated Statements of Operations), less equity in earnings
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