Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — Investor Day (March 2017)
43 slides from Martin Midstream Partners L.p's investor day presentation, Mar 23, 2017
Slide 1: 2017 Analyst & Investor Day
TEXT GOES HERE SUBTEXT IS PLACED HERE 2017 A N A LY S T & I N V E S T O R D AY MARCH 23
Slide 2: Agenda
MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 AGENDA Welcome & MMLP Joe McCreery, Vice President – Finance & Head of Investor Relations Overview TEXT GOES HERE SUBTEXT IS PLACED HERE Operational Bob Bondurant, Executive Vice President & Chief Financial Officer Overview Financial Joe McC
Slide 3: Use of Non-GAAP Financial Measures
MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 USE OF NON-GAAP FINANCIAL MEASURES This presentation includes certain non-GAAP financial measures such as EBITDA and Adjusted EBITDA. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for result
Slide 4: 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 5: Welcome & MMLP Overview
WELCOME & MMLP OVERVIEW
Slide 6: (MMLP) Overview
MARTIN MIDSTREAM PARTNERS L.P. OVERVIEW (MMLP) OVERVIEW • NASDAQ Listed: MMLP • Formed October 31, 2002 TEXT GOES HERE • MMLP is a publicly traded, diversified masterSlimited U B T partnership EXT IS PLACED HERE with operations including: • Terminalling & Storage • Natural Gas Services • Sulfur Serv
Slide 7: Key Investment Highlights
MARTIN MIDSTREAM PARTNERS L.P. KEY INVESTMENT HIGHLIGHTS Fee-Based Contracts • Majority (nearly 70%) of cash flows generated from fee-based contracts which include take or pay, T Eminimum XT G O Ecommitments S HERE reservation and volume SUBTEXT IS PLACED HERE Fully Integrated, • Diversified asset b
Slide 8: Uniquely Diversified Operating Mix
MARTIN MIDSTREAM PARTNERS L.P. U N I Q U E LY D I V E R S I F I E D O P E R AT I N G M I X TEXT GOES HERE SUBTEXT IS PLACED HERE Natural Gas Services Terminalling & Storage $78.7 $69.5 Sulfur Services Marine Transportation $35.1 $176.6 million Adjusted EBITDA $8.1 ($191.4 million before $14.8 millio
Slide 9: MMLP Asset Locations – All Segments
MARTIN MIDSTREAM PARTNERS L.P. OVERVIEW M M L P A S S E T L O C AT I O N S – A L L S E G M E N T S TEXT GOES HERE SUBTEXT IS PLACED HERE 10
Slide 10: 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 TEXT GOES HERE life approximately 4 years as of December 31,S2016) UBTEXT IS PLACED HERE • Fee-based, regulated common carrier tariffs (WTLPG) • M
Slide 11: High Quality Long-Term Customer Base
MARTIN MIDSTREAM PARTNERS L.P. H I GH Q UALI TY LO NG- TERM C USTOMER BA S E • Long-term customer relationships are a key driver of our success • Full value chain solutions for handling and logistics TEXT GOES HERE • Customers include some of the largest, most Srecognizable UBTEXT IS PLACED HERE bus
Slide 12: (MRMC) 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 TEXT GOES HERE • Approximately 1,900 empl
Slide 13: Strong General Partner Support
MARTIN MIDSTREAM PARTNERS L.P. S T R O N G G E N E R A L PA R T 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 TEXT GOES HERE complementary to MMLP SUBTEXT IS PLACED HERE • MRMC’s contractual relationships with MMLP are designed to mo
Slide 14: 2017E Guidance by Segment
MARTIN MIDSTREAM PARTNERS L.P. 2017E GUIDANCE BY SEGMENT TEXT GOES HERE SUBTEXT IS PLACED HERE Natural Gas Services Terminalling & Storage $76.9 2017 $59.1 Sulfur Services Marine Transportation $29.8 $157.4 million Adjusted EBITDA $7.2 ($173.0 million before $15.6 million unallocated SG&A and other
Slide 15: Operational Overview
O P E R AT I O N A L O V E R V I E W 16
Slide 16: 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. TEXT GOES HERE • MMLP distributes NGLs purchased
Slide 17: Cardinal Gas Storage
MARTIN MIDSTREAM PARTNERS L.P. – NATURAL GAS SERVICES CARDINAL GAS STORAGE Firm Contracted/Fee-Based Storage Model Cardinal Contract Summary • Firm contracted model for natural gas storage with T E X T GOES HERE Working Gas Currently Type Capacity (bcf) Contracted Years interruptible service upside
Slide 18: 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 S S E T L O C AT I O N S TEXT GOES HERE SUBTEXT IS PLACED HERE Arcadia Gas Storage • Salt dome facility (Arcadia, LA) – 16.3 bcf Perryville Gas Storage • Salt dome facility (Delhi, LA) – 9.0 bcf Cadeville Gas
Slide 19: 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 gasoline toT E X T G $30.0 OES HERE $23.5 $26.1 B T E X T I S $25.0 meet seasonal EPA standards and are allowed StoUblend PLAC
Slide 20: 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 • MMLP owns 20% interests in WTLPG (OKS is owner/operator of remaining 80%
Slide 21: 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 transporting T E XY- T G O •E SWholesale H E Rpropane E distribution to approximately 100 grade from Kilgore, TX to Beaumont, TX for fractionation; S U B T E East X
Slide 22: 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 products and by-products and TEXT GOES
Slide 23: 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 T EofX T • Network of 14 terminals which facilitate the movement GOES HERE SUBTEXT IS PLACED HERE petroleum products and by-products and petrochemicals from oil refiners and natura
Slide 24: Expertise In Hard to Handle Product and By-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 H E RSpecialized E Sites (continued) SUBTEXT IS PLACED HERE • Hondo Asphalt Terminal • Beaumont Neches • Acquire
Slide 25: Marine Shore-Based Terminals
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE MARINE SHORE-BASED TERMINALS Gulf Coast Fuel and Lubricant Distribution Network T EALXtoT • 26 terminals along the Gulf Coast from Blakeley Island, GO • E S H Econtract Fee-based R E structure provides stable cash flow SUBTEXT IS PLACED HERE Po
Slide 26: Smackover Refinery
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S M A C KO V E R R E F I N E R Y Specialized Naphthenic Refinery • T EinX T 7,700 bpd capacity naphthenic lube refinery located G• OFee-based E S Hcontract E R Estructure provides stable cash flow SUBTEXT IS PLACED HERE Smackover, AR • Long-ter
Slide 27: Martin Lubricants
MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE MARTIN LUBRICANTS Lubricant Blending & Packaging • Specialty lubricant product blending and packagingT EXT assets GOES HERE S U B T EAR located within MMLP’s Smackover Refinery in Smackover, XT IS PLACED HERE includes: • 235,000 sq. ft. warehou
Slide 28: Sulfur Services Overview
MARTIN MIDSTREAM PARTNERS L.P. SULFUR SERVICES OVERVIEW • Molten sulfur, a refinery by-product, is aggregated, stored, prilled and transported through MMLP’s integrated value chain systems • MMLP manufactures and markets sulfur-based fertilizers and related sulfur products (sulfuric acid) to wholesa
Slide 29: 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 • Intermodal transportation offers multiple fee opportunities for MMLP TEXT GOES HERE SUBTEXT IS PLA
Slide 30: Fertilizer
MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES FERTILIZER Fertilizer Overview Supply/Demand • MMLP manufactures and markets sulfur-based fertilizers • The single largest factor influencing fertilizer demand in the TEXT GOES HERE and related sulfur products for agricultural and Sindustrial U.S. is
Slide 31: 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 Barge 10,450 Long Tons Molten Sulfur • MMLP handles molten sulfur and fulfills customer needs T E XbyT GOES HERE B T E X T I S POffshore transporting p
Slide 32: Prilled Sulfur
MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES PRILLED SULFUR Prilling Agreements Terminal Location Production Products Stored Capacity • Refiners pay MMLP minimum reservation fees, plus T E X T G O Neches E S H EBeaumont, R E TX 5,500 metric tons/day Molten, prilled & granulated sulfur operating
Slide 33: 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 • MMLP’s marine transportation business operates coastwise along the Gulf of Mexico, East Co
Slide 34: Assets
MARTIN MIDSTREAM PARTNERS L.P. – MARINE TRANSPORTATION ASSETS Marine Transportation • 35 inland marine tank barges TEXT GOES HERE • 19 inland push-boats SUBTEXT IS PLACED HERE • 1 offshore tug and barge unit • Ability to handle specialty products (asphalt, fuel oil, gasoline, sulfur and other bulk l
Slide 35: Inland & Offshore
MARTIN MIDSTREAM PARTNERS L.P. – MARINE TRANSPORTATION INLAND & OFFSHORE Profitability Drivers • Supply of available marine equipment Inland Marine Adjusted EBITDA TEXT GOES HERE • Refinery utilization and runs SUBTEXT IS $20.0 PLACED HERE $16.3 • Demand for asphalt, heavy fuel oil and cutters $16.0
Slide 36: Recent Acquisition
RECENT ACQUISITION
Slide 37: 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 TEXT GOES HERE • Expect substantial completion by endSofUsecond BTEX quarter T I Sa
Slide 38: 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 TEXT GOES HERE SUBTEXT IS PLACED HERE 39
Slide 39: Financial Foundation
F I N A N C I A L F O U N D AT I O N
Slide 40: Capitalization
MARTIN MIDSTREAM PARTNERS L.P. C A P I TA L I Z AT I O N 12/31/2015 12/31/2016 DEBT TEXT GOES HERE Revolving Credit FacilitySDue U 2020 BTEXT IS P LACED $498.0 H E$443.0 RE Senior Secured Debt $498.0 $443.0 Senior Notes Due February 2021 $373.8 $373.8 Total Debt $871.8 $816.8 Partners’ Capital $393.
Slide 41: 2016 Adjusted EBITDA and GAAP Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2 0 1 6 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 Gas Terminalling Marine Interest 2016 Sulfur Services SG&A Services & Storage Transportation Expense Actual Net income (loss) $43.1 T E X $44.1 T G O E $26.8 S H E R $(19.8) E $(16.4)
Slide 42: 2017E Adjusted EBITDA Guidance Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2 0 1 7 E A D J U S T E D E B I T D A G U I D A N C E R E C O N C I L I AT I O N Natural Gas Terminalling Marine Interest Sulfur Services SG&A 2017E Services & Storage Transportation Expense Net income (loss) $47.5 T E X T$9.8 G O E $21.5 S H E R E$(1.2) $(17.1) $(45.6
Slide 43: 2017 | Martin Midstream Partners
2017 | MARTIN MIDSTREAM PARTNERS SUBTEXT IS PLACED HERE
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