Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — RBC Capital Markets' 2017 MLP Conference
44 slides from Martin Midstream Partners L.p's conference presentation, Nov 16, 2017
Slide 1: RBC MLP Investor Conference
TEXT GOES HERE SUBTEXT IS PLACED HERE 2017 R B C - M L P I N V E S TO R CONFERENCE NOVEMBER 16
Slide 2: 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 3: 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 4: Welcome & MMLP Overview
WELCOME & MMLP OVERVIEW
Slide 5: (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 6: 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 7: 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 8
Slide 8: 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 9: 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 10: (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 11: 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 12: 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 13: Operational Overview
O P E R AT I O N A L O V E R V I E W 14
Slide 14: 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 15: 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 16: 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 17: 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 • Refineries adjust the vapor pressure of gasoline toT E X T GOES HERE meet seasonal EPA standards and are allowed StoUblend BTEXT IS PLACED HERE butane into gasoline pool during winter months
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: Assets
MARTIN MIDSTREAM PARTNERS L.P. – MARINE TRANSPORTATION ASSETS Marine Transportation Profitability Drivers • 35 inland marine tank barges • Supply of available marine equipment TEXT GOES HERE • 19 inland push-boats SUBTEXT IS P •L A Refinery C E D utilization H E R E and runs • 1 offshore tug and bar
Slide 33: Recent Growth Initiatives
R E C E N T G R O W T H I N I T I AT I V E S
Slide 34: Delaware Growth Opportunity
MARTIN MIDSTREAM PARTNERS L.P. D E L AWA R E G R O W T H O P P O R T U N I T Y WTLPG to Expand in the Delaware Basin Project Scope – West Texas Pipeline Expansion: TEXT GOES HERE Connect WTLPG to two planned 200 MMcfd processing S U B Tplants E X T in IReeves S P LCounty, A C E TX; D Providing H E R
Slide 35: WTLPG Expansion Project
MARTIN MIDSTREAM PARTNERS L.P. W T L P G E X PA N S I O N P R O J E C T TEXT GOES HERE SUBTEXT IS PLACED HERE Source: Oneok, Inc. 36
Slide 36: 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 • $5.0 million annual EBITDA supported by minimum throughput commitments (~7.2x purchase multiple) TEXT GOES HERE • Contract runs through the paving season S U of BT 2030 EXT IS PLA
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 TEXT GOES HERE SUBTEXT IS PLACED HERE 38
Slide 38: Financial Foundation
F I N A N C I A L F O U N D AT I O N
Slide 39: Capitalization
MARTIN MIDSTREAM PARTNERS L.P. C A P I TA L I Z AT I O N 12/31/2016 9/30/2017 DEBT TEXT GOES HERE Revolving Credit FacilitySDue U 2020 BTEXT IS P LACED $443.0 H E$463.0 RE Senior Secured Debt $443.0 $463.0 Senior Notes Due February 2021 $373.8 $373.8 Total Debt $816.8 $836.8 Partners’ Capital $312.0
Slide 40: Appendix: Partnership Guidance and GAAP Reconciliations
A P P E N D I X : PA R T N E R S H I P G U I DA N C E A N D G A A P R E C O N C I L I AT I O N S
Slide 41: MMLP 3Q 2017 Adjusted EBITDA Comparison To Guidance
$ millions MMLP 3Q 2017 ADJUSTED EBITDA COMPARISON TO GUIDANCE Natural Gas Terminalling Sulfur Marine Interest 3Q17 SG&A Services & Storage Services Transportation Expense Actual Net income (loss) $7.3 $(6.4) $0.6 $(0.7) $(4.5) $(12.6) $(16.3) Interest Expense Add-back -- -- -- -- -- $12.6 $12.6 Dep
Slide 42: MMLP Full Year 2017E Adjusted EBITDA Guidance
$ millions MMLP FULL YEAR 2017E ADJUSTED EBITDA GUIDANCE Natural Gas Terminalling Sulfur Marine Interest SG&A 2017E Services & Storage(1) Services Transportation Expense Net income (loss) $47.5 $9.8 $21.5 $(1.2) $(17.1) $(45.6) $14.9 Interest expense add back -- -- -- -- -- $45.6 $45.6 Depreciation
Slide 43: MMLP 9 Months Ended 2017 Adjusted EBITDA
$ millions MMLP 9 MONTHS ENDED 2017 ADJUSTED EBITDA Natural Gas Terminalling Marine Interest Sulfur Services SG&A 9M 2017 Services & Storage Transportation Expense Net income (loss) $29.8 $(3.2) $19.2 $0.0 $(12.8) $(34.7) $(1.7) Interest expense add back -- -- -- -- -- $34.7 $34.7 Depreciation and a
Slide 44: Subtext Is Placed
2017 | MARTIN MIDSTREAM PARTNERS SUBTEXT IS PLACED HERE
Martin Midstream Partners — RBC Capital Markets' 2017 MLP Conference on 6ix