Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — Investor Day (March 2016)
42 slides from Martin Midstream Partners L.p's investor day presentation, Mar 23, 2016
Slide 1: Analyst Day March 23, 2016
“ ANALYST DAY MARTIN MARCH 23, 2016 MIDSTREAM PARTNERS
Slide 2: Analyst Day Agenda – 2016
MARTIN MIDSTREAM PARTNERS L.P. ANALYST DAY AGENDA – 2016 Welcome & Introductions T President Joe McCreery, Vice E X T –GFinance O E &S Head HE of R E Relations Investor SUBTEXT IS PLACED HERE MMLP Overview Joe McCreery, Vice President – Finance & Head of Investor Relations Segment & Operational Bob
Slide 3: Use of Non-GAAP Financial Measures
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 results prepared in accordance with accounting principles TEXT GO
Slide 4: 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 TEXT GOES
Slide 5: Martin Midstream Partners L.P. Overview
M A R T I N M I D S T R E A M PA R T N E R S L . P. O V E R V I E W J o e M c C r e e r y, V i c e P r e s i d e n t – F i n a n c e
Slide 6: Martin Resource Management (MRMC) Overview
MARTIN RESOURCE MANAGEMENT (MRMC) OVERVIEW • Based in Kilgore, TX, MRMC is a leading independent provider of storage, manufacturing, marketing, and distribution services to energy, petrochemical and other industrial concerns TEXT GOES HERE • MRMC and its legacy companies have been operating S U B Ts
Slide 7: Martin Midstream Partners L.P. (MMLP) Overview
MARTIN MIDSTREAM PARTNERS L.P. (MMLP) OVERVIEW • NASDAQ Listed: MMLP • Formed October 31, 2002 TEXT GOES HERE • MMLP is a publicly traded, diversified master limited S U B Tpartnership EXT IS PLACED HERE with operations including: • Terminalling & Storage • Natural Gas Services • Sulfur Services • M
Slide 8: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Majority of cash flows generated from fee-based contracts Fee-Based Contracts • Significant portions consist of reservation charges or minimum fee arrangements TEXT GOES HERE SUBTEXT IS PLACED HERE • Refinery centric, diversified asset base with four complementary busines
Slide 9: Uniquely Diversified Operating Mix
UNIQUELY DIVERSIFIED OPERATING MIX Natural Gas Services Terminalling & Storage $83.5 $67.3 $188.3 Adjusted EBITDA Marine Transportation Sulfur Services ($204.7 million before $16.4 million unallocated SG&A and other non-operating income) $17.9 $36.0 9
Slide 10: Uniquely Diversified Operating Mix
UNIQUELY DIVERSIFIED OPERATING MIX Natural Gas Services Terminalling & Storage $84.2 $72.0 $183.6 Adjusted EBITDA Marine Transportation Sulfur Services ($199.7 million before $16.1 million unallocated SG&A and other non-operating income) $14.2 $29.3 10
Slide 11: MMLP Asset Locations – All Segments
MMLP ASSET LOCATIONS – ALL SEGMENTS 11
Slide 12: Strong Fee-Based Contract Mix
STRONG FEE-BASED CONTRACT MIX Natural Gas Services • Fee-based, multi-year natural gas storage contracts (weighted average life approximately 4.5 years) • TEXT Fee-based regulated common carrier tariffs (WTLPG) GOES HERE SUBTEXT IS PLACED HERE • Margin-based wholesale NGLs Terminalling & Storage • F
Slide 13: Profitability Drivers
PROFITABILITY DRIVERS Natural Gas Services Terminalling & Storage • Cardinal Gas Storage • Corpus Christi Crude and Specialty Terminals • Natural Gas production/supply • Eagle Ford production (CCCT) • Geographical basis differentials T E X T G O E S •H E R E dependency on moving by-products such as
Slide 14: Profitability Drivers
PROFITABILITY DRIVERS Sulfur Services Marine Transportation • Fertilizer • Refinery utilization • Macro agricultural demand (forecast calls for a slight • North American oil & gas production (shale plays) increase in corn acreage planted for 2016)T E X T GOES HERE • Long-term diminishing and inadequ
Slide 15: High Quality Long-Term Customer Base
HIGH QUALITY LONG-TERM CUSTOMER BASE • Long-term customer relationships are a key driver of our success TEXT GOES HERE • Full value chain solutions for handling and logistics SUBTEXT IS PLACED HERE • Customers include some of the largest, most profitable businesses in the energy industry. These incl
Slide 16: Strong General Partner Support
STRONG GENERAL PARTNER SUPPORT • MRMC businesses help support MMLP • MRMC’s distinct assets and business units are TEXT GOES HERE complementary to MMLP SUBTEXT IS PLACED HERE • Approximately 25% of 2015 MMLP Adjusted EBITDA derived from contracts with MRMC • MRMC has significantly assisted in MMLP’s
Slide 17: Segment & Operational Overview
S E G M E N T & O P E R AT I O N A L O V E R V I E W Bob Bondurant, Chief Financial Officer
Slide 18: Natural Gas Services Overview
NATURAL GAS SERVICES OVERVIEW MMLP provides wholesale distribution of natural gas liquids (NGLs) to propane retailers, refineries and industrial NGL users in Texas and the southeastern U.S. MMLP owns Cardinal Gas Storage Partners LLC, which is focused on the operation and management of 50 Bcf in nat
Slide 19: Natural Gas Services: Cardinal Gas Storage
NATURAL GAS SERVICES Cardinal Gas Storage Cardinal Gas Storage Adjusted EBITDA $50.0 $44.3 Firm Contracted Storage/Fee-Based Cash Flow $40.0 $38.1 • Firm contract model for natural gas storage T E X T G O E$30.0 S HERE • Long term contracts – Cardinal’s weighted average S Ucontract BTEXT IS PLACED H
Slide 20: Cardinal Gas Storage Asset Locations
NATURAL GAS SERVICES Cardinal Gas Storage Asset Locations Arcadia Gas Storage Monroe Gas Storage • Salt dome facility (Arcadia, LA) – 17.5 bcf • Depleted reservoir facility (Amory, MS) – 7.0 bcf Perryville Gas Storage • Salt dome facility (Delhi, LA) – 8.5 bcf Cadeville Gas Storage • Depleted reserv
Slide 21: Natural Gas Services: Butanes & Underground Storage
NATURAL GAS SERVICES Butanes & Underground Storage Butane Optimization Butanes Adjusted EBITDA • New rail rack at Arcadia, LA operational June 1, 2015 – creating $23.5 $25.0 dual capabilities (truck and rail) plus a broadened (national) $19.9 $20.0 geographic product footprint $15.7 • EPA regulates
Slide 22: Natural Gas Services: West Texas LPG Pipeline L.P.
NATURAL GAS SERVICES West Texas LPG Pipeline L.P. • WTLPG includes approximately 2,300 miles of Y-grade pipeline extending from eastern New Mexico to Mt. Belvieu, Texas • MMLP owns 20% interests in West Texas LPG Pipeline L.P. (OKS is owner/operator of remaining 80%) TEXT GOES HERE • Nameplate capac
Slide 23: Natural Gas Services: NGLs & Propane
NATURAL GAS SERVICES NGLs & Propane NGLs Propane Assets include 200-mile East Texas Pipeline providing Y- X T • Wholesale propane distribution to approximately 100 • TE GOES HERE grade deliveries (Kilgore to Beaumont) for fractionation; regional SUBTEXT IS PLA C E D (Southeastern HERE U.S.) customer
Slide 24: Terminalling & Storage
TERMINALLING & STORAGE MMLP owns or operates 45 terminal facilities with an aggregate storage capacity of 4.2 million barrels. These facilities are located across the U.S. Gulf Coast region and provide storage, refining, T E Xblending, T G packaging, OES H andE handling R E services for producers an
Slide 25: Terminalling & Storage: Specialty Terminals
TERMINALLING & STORAGE Specialty Terminals Specialty Terminals Overview • T Ethe Network of 16 owned or operated terminals facilitate XT GOES HERE SUBTEXT IS PLACED HERE movement of petroleum products and by-products to and from oil refiners and natural gas processing facilities • Specialized capabi
Slide 26: Terminalling & Storage: Specialty Terminals
TERMINALLING & STORAGE Specialty Terminals Expertise In Crude Oil Transloading and “Hard to Handle” Product and By-Product Logistics Corpus Christi Crude Terminal T E X T G O E S H E RSpecialized E Sites (continued) SUBTEXT IS PLACED HERE • Integral Eagle Ford Shale crude oil transloading facility •
Slide 27: Terminalling & Storage: Marine Shore-Based Terminals
TERMINALLING & STORAGE Marine Shore-Based Terminals Gulf Coast Fuel and Lubricant Distribution Network • T Efrom 29 owned or operated terminals along the Gulf Coast XT G• O Strategically-located E S H E R E asset base well-positioned to support SUBTEXT IS PLACED Blakeley Island, AL to Corpus Christi
Slide 28: Terminalling & Storage: Smackover Refinery
TERMINALLING & STORAGE Smackover Refinery Specialized Naphthenic Refinery • T Ein X T 7,500 bpd capacity naphthenic lube refinery located G •O EFee-based S H Econtract R E structure provides stable cash flow SUBTEXT IS P L A•C ELong-term D H E R tolling E agreement with MRMC leaving Smackover, AR •
Slide 29: Terminalling & Storage: Martin Lubricants
TERMINALLING & STORAGE Martin Lubricants Lubricant Blending & Packaging • T assets Specialty lubricant product blending and packaging EXT GOES HERE located in Smackover, AR including: SUBTEXT IS PLACED HERE • 235,000 sq. ft. warehouse • 5.3 million gallons bulk storage • MMLP purchases base oils to
Slide 30: Sulfur Services Overview
SULFUR SERVICES OVERVIEW MMLP has an integrated system of sulfur aggregation facilities and transportation assets. MMLP gathers molten sulfur from refiners, primarily located on the Gulf Coast. Molten sulfur is either marketed to fertilizer and industrial companies on a fixed TEXT GOES HERE margin b
Slide 31: Sulfur Services: Integrated Value Chain
SULFUR SERVICES Integrated Value Chain • Provides transportation, processing and marketing services necessary to move product from producer to consumer • Intermodal transportation offers multiple fee opportunities for the Partnership 31
Slide 32: Sulfur Services: Fertilizer
SULFUR SERVICES Fertilizer Fertilizer Adjusted EBITDA $25.0 Fertilizer Overview $19.5 $20.0 $18.0 • MMLP manufactures and markets sulfur-based fertilizer and $16.2 T E X T G O E$15.0 S HERE related sulfur products for agricultural and industrial use from SUBTEXT IS PLACED HERE $10.0 manufacturing pl
Slide 33: Sulfur Services: Molten Sulfur
SULFUR SERVICES Molten Sulfur Molten Sulfur Adjusted EBITDA $12.0 Refinery Supply Agreements $9.8 $10.0 $8.7 • Performance risk is minimal as refiners require security of $8.0 TEXT GOES HERE $6.2 offtake and customers need stable supply SUBTEXT IS $6.0 PLA CED HERE • Contracts often have evergreen p
Slide 34: Sulfur Services: Prilled Sulfur
SULFUR SERVICES Prilled Sulfur Sulfur Prilling Adjusted EBITDA $12.0 Prilling Agreements $10.0 $8.9 • Refinery customers pay MMLP minimum reservation fees T E X T G O E $8.0 S HERE $6.7 and operating fees per ton of sulfur for its prilling $5.1 S Uservices $6.0 BTEXT IS PLA CED HERE • Most contracts
Slide 35: Marine Transportation Overview
MARINE TRANSPORTATION OVERVIEW MMLP utilizes a fleet of inland and offshore tows to provide marine transportation of petroleum products and by-products produced in oil refining and natural gas processing. MMLP’s marine transportation business operates coastwise along the Gulf of Mexico, East TEXT GO
Slide 36: Marine Transportation: Assets
MARINE TRANSPORTATION Assets Marine Transportation • 45 inland marine tank barges TEXT GOES HERE • 25 inland push-boats SUBTEXT IS PLACED HERE • 3 offshore tug barge units • Ability to handle specialty products (asphalt, fuel oil, gasoline, sulfur and other bulk liquids), which complements the MMLP
Slide 37: Marine Transportation: Inland & Offshore
MARINE TRANSPORTATION Inland & Offshore Inland Marine Adjusted EBITDA $25.0 Profitability Drivers $21.6 $20.0 • Supply of available marine equipment $16.3 $16.6 T E X T G O E$15.0 S HERE • Refinery utilization and runs SUBTEXT IS PLACED HERE • North American production including shale plays and offs
Slide 38: Financial Foundation & Projections
F I N A N C I A L F O U N D AT I O N & P R O J E C T I O N S E T J o e M c C r e e r y, V i c e P r e s i d e n t – F i n a n c e
Slide 39: Capitalization
CAPITALIZATION $ millions SS Debt Revolving Credit Facility Due 2018 Senior Secured Debt Senior Notes Due February 2021 Total debt Partners’ Capital Total Capitalization Market Capitalization Enterprise Value Credit Metrics Revolver Capacity Availability Adjusted EBITDA per lender compliance Senior
Slide 40: Recent MMLP Unit Purchases by Key Insiders
RECENT MMLP UNIT PURCHASES BY KEY INSIDERS Total Period Total Q3 2014 Q4 2014 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2015 Q1 2016 2016 Purchases Ownership General Partner Martin Resource Management Corporation (51%) 1,171,265 - 1,171,265 - - - - - - - 1,171,265 6,264,532 Alinda Capital Partners (49%)
Slide 41: Adjusted EBITDA and GAAP Reconciliation
ADJUSTED EBITDA AND GAAP RECONCILIATION 41
Slide 42: SUBTEXT IS PLACED
2016 | MARTIN MIDSTREAM PARTNERS SUBTEXT IS PLACED HERE
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