Martin Midstream Partners L.P. · NASDAQ:MMLP
Martin Midstream Partners L.P — 2007 MLP Conference
24 slides from Martin Midstream Partners L.P's conference presentation, Mar 7, 2007
Slide 1: Martin Midstream Partners L.P. (MMLP) 2007 MLP Conference
Martin Midstream Partners L.P. (MMLP) 2007 MLP Conference March 7, 2007
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 Representatives
Management Representatives Ruben Martin President & Chief Executive Officer Bob Bondurant Chief Financial Officer Scott Martin Executive Vice President
Slide 4: Investment Highlights
Investment Highlights Distribution Growth Visibility Attractive & Improving Yield Experienced Management Team Aligned w/ Unitholders Organic growth projects coming online in 1Q and 2Q 2007 Currently trading at a 6.8% yield ($2.48/unit) MLP Universe at 6.1% yield $4.53/unit discount Management owns:
Slide 5: Diversified Operating Mix...
Diversified Operating Mix... Sulfur Fertilizer Marine Transportation Terminalling and Storage Natural Gas Services Percentages in segments based on estimated contribution to 2007 Adjusted EBITDA (as defined on page 23), excluding unallocated SG&A 30% 25% 25% 15% 5%
Slide 6: Diversified Operating Mix...
Diversified Operating Mix... Terminalling & Storage 17 marine terminals and 4 inland terminals in the Gulf Coast region Storage and handling of petroleum products and by-products Natural Gas Services Natural gas gathering pipelines and 150 MMcfd gas processing plant in East Texas NGL distribution Ma
Slide 7: ....With A Common Thread
....With A Common Thread Through our various operating segments, we provide handling, transportation and storage services for most of the major oil refiners throughout the Gulf Coast region
Slide 8: Gulf Coast Focus
Gulf Coast Focus Corpus Christi
Slide 9: Diversity with Leverage to Growth
Diversity with Leverage to Growth 2006 2002 MMLP has developed into a diversified MLP with increasing emphasis on business lines with greater leverage to growth Acquisition of Tesoro assets in 2003 significantly increased our presence in Gulf Coast terminalling Acquisition of Prism in 2005 marked ou
Slide 10: Alignment of Interests
Alignment of Interests General Partner Public 19.6% LP (Common) 19.0% LP (Subordinated) 59.4% LP (Common) Management owns a 38.6% LP interest and a 2.0% GP interest GP has purchased $30 million of common units in the last 18 months Subordination until 2009(1) Martin Resource Management Corporation 1
Slide 11: Our General Partner
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 MRMC was founded in 1951 by R.S. Martin, Jr. and currently employs over 1,500 people prim
Slide 12: Our General Partner: Arcadia Gas Storage LLC
Our General Partner Our general partner owns Arcadia Gas Storage LLC Arcadia Gas Storage LLC was formed in 2006 to develop a salt dome natural gas storage facility in Arcadia, Louisiana Total development expected to be 15.5 Bcf of working gas Successful open season concluded in January 2007 Gas prod
Slide 13: Attractive Yield...
1. MLP Universe yield taken from Alerian MLP Index as of February 28, 2007. 2. Propane includes APU, FGP, NRGY and SPH. 3. Shipping includes KSP, TGP, TOO, USS. 4. Large Cap includes BWP, BPL, EEP, ETP, EPD, KMP, MMP, OKS, PAA, TPP, VLI. 5. Coal includes ARLP, NRP, NSP, PVR. 6. Mid Cap includes APL,
Slide 14: ....Improving Yield
One year ago, MMLP was trading at a 132 bp discount to the MLP Universe (1) (1) As of February 28, 2007. MLP Universe data is taken from the Alerian MLP Index. Spread Over MLP Universe (bps) 3Q 2006 Earnings Disappointment 156 bps 2006 MLP Conference 132 bps Current 76 bps MMLP is currently trading
Slide 15: Prism Expansion
Prism Expansion MMLP is currently expanding Waskom plant from 150 MMcfd to 250 MMcfd Phase I Expansion: +30 MMcfd of processing capacity (to come online in March 2007) +3,000 Bpd of fractionation capacity (completed in January 2007) Phase II Expansion: +70 MMcfd of processing capacity (to come onlin
Slide 16: Waskom Performance
Waskom Performance Acquisition of Prism in November 2005 In 2004, Prism processed approximately 129 MMcfd at Waskom 2007 Waskom plant inlet volumes estimated at 252 MMcfd 2004 2005 2006 2007E 129 MMcfd 160 MMcfd 183 MMcfd 252 MMcfd Plant Inlet Volumes (MMcfd) 25% CAGR
Slide 17: Sulfuric Acid Plant
Sulfuric Acid Plant MMLP is currently constructing a sulfuric acid plant at our Plainview, Texas facility Plant will secure sulfuric acid supply and lower fertilizer feedstock costs Investment estimated at $25 million and a 4-6x Adjusted EBITDA multiple(1) Plant scheduled to come online in late Apri
Slide 18: Improving Adjusted EBITDA Growth
Adjusted EBITDA increased by 52.6% from 2005 to 2006 Adjusted EBITDA Year-over-Year Adjusted EBITDA Growth (1) See page 22 for Adjusted EBITDA reconciliation to net income. Improving Adjusted EBITDA Growth Figures in thousands
Slide 19: Improving Distribution Growth
Improving Distribution Growth Actual distributions per LP Unit increased by 11.4% from 2005 to 2006 Q1 2007 distribution increased by 1.6% Waskom Expansion & Acid Plant expected to be fully integrated by June Actual Distributions Year-over-Year Distribution Growth
Slide 20: Strong Balance Sheet
Strong Balance Sheet Recent equity offering has reduced leverage Current Debt / Total Capitalization = 47% Target Debt / Total Capitalization = 50%
Slide 21: Substantial Liquidity
Substantial Liquidity $24 million available at target debt level $155 million in overall liquidity Target Debt / Total Capitalization = 50%
Slide 22: EBITDA Reconciliation
EBITDA Reconciliation Figures in thousands
Slide 23: EBITDA & Adjusted EBITDA Calculations
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
Slide 24: Martin Midstream Partners L.P. (MMLP) 2007 MLP Conference
Martin Midstream Partners L.P. (MMLP) 2007 MLP Conference March 7, 2007