Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — Non-Deal Roadshow (September 2014)
41 slides from Martin Midstream Partners L.p's roadshow presentation, Sep 29, 2014
Slide 1: MMLP Non-deal Road Show
MMLP Non‐deal Road Show September 29th – October 1st, 2014 NASDAQ: MMLP www.martinmidstream.com
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: 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 genera
Slide 4: Partnership Overview
MIDSTREAM Poa Rt NE RS PARTNERSHIP OVERVIEW
Slide 5: Martin Midstream Partners L.P. (MMLP) Overview
MARTIN MIDSTREAM PARTNERS L.P. (MMLP) OVERVIEW • NASDAQ Listed: MMLP • Formed October 31, 2002 • MMLP is a publicly traded, diversified master limited partnership with operations including: • Terminalling & Storage • Natural Gas Services • Sulfur Services • Marine Transportation • MMLP Trading Summa
Slide 6: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Majority of cash flows generated from fee‐based or ‘fee‐like’ contracts Fee‐Based Contracts • Significant portions consist of reservation charges or minimum fee arrangements Fully Integrated, • Diversified asset base with four complementary business units that create a Di
Slide 7: Our Diversified Operating Mix
OUR DIVERSIFIED OPERATING MIX Natural Gas Services Marine Transportation $60.0 $15.0 $180 Million Sulfur Services Terminalling & Storage $30.0 (all $ values before unallocated SG&A) $75.0 7
Slide 8: MMLP Asset Locations – All Segments
MMLP ASSET LOCATIONS – ALL SEGMENTS 8
Slide 9: Stable Businesses/No Direct Commodity Exposure
STABLE BUSINESSES/NO DIRECT COMMODITY EXPOSURE Terminalling & Storage • Multi‐year, fee‐based contracts – traditional storage assets • Fee‐based specialty products and shore‐based terminals with guaranteed throughput minimums • Margin‐based lubricant packaging PF 2014E EBITDA Breakdown(1) Natural Ga
Slide 10: High Quality Long Term Customer Base
HIGH QUALITY LONG TERM CUSTOMER BASE • Integrated and complementary business segments uniquely position MMLP • Full value chain handling and logistics capabilities and solutions • Long‐term customer relationships are a key driver of our success • Breadth, scale and brand recognition make MMLP a prem
Slide 11: Significant EBITDA Growth
SIGNIFICANT EBITDA GROWTH MMLP ADJUSTED EBITDA1 $200.0 $180.0 $180.0 $160.0 $155.2 $140.0 $131.9 $120.0 $97.9 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 2011 2012 2013 2014E 1) $ in millions, before Unallocated SG&A 11
Slide 12: Martin Resource Management (MRMC) Overview
MARTIN RESOURCE MANAGEMENT (MRMC) OVERVIEW • Based in Kilgore, TX, MRMC is a leading independent provider of integrated logistics solutions, storage, manufacturing, marketing, and distribution services to energy, petrochemical and other industrial concerns • MRMC and its legacy companies have been o
Slide 13: Strong General Partner Support
STRONG GENERAL PARTNER SUPPORT • Ongoing MRMC businesses help support the Partnership • Maintains distinct set of assets and business units that Martin Resource are complementary to MMLP Management Corporation • Approximately 22% of 2013 MMLP EBITDA derived 50% Economic from contracts with MRMC 51%
Slide 14: Announced & Likely Growth Opportunities
ANNOUNCED & LIKELY GROWTH OPPORTUNITIES • Corpus Christi condensate splitter / stabilization unit– 24 to 30 Months • Up to 50 thousand barrels per day of capacity • Fee‐based contractual arrangement with supply and off‐take counterparties • NGL floating storage and trans‐loading Eagle Ford liquids f
Slide 15: Business Segment Overview
MIDSTREAM Poa Rt NE RS BUSINESS SEGMENT OVERVIEW
Slide 16: Terminalling & Storage
MIDSTREAM Poa Rt NE RS TERMINALLING & STORAGE
Slide 17: Segment Overview – Terminalling & Storage
SEGMENT OVERVIEW – TERMINALLING & STORAGE • MMLP owns or operates 47 terminal facilities with Adjusted Segment EBITDA (1) $67.1 4.2 million barrels of aggregate storage capacity $70.0 $ in$millions in millions across the U.S. Gulf Coast region that provide $60.0 $50.9 $50.0 storage, processing and h
Slide 18: Terminalling & Storage – Shore-Based Terminals
TERMINALLING & STORAGE – SHORE‐BASED TERMINALS • 30 marine shore based terminals located at strategic distribution points along the Gulf Coast from Theodore, AL, to Corpus Christi, TX, and divided into two classes: • Full service • Fuel and lubricant terminals • 10 full service terminals provide log
Slide 19: Terminalling & Storage – Specialty Terminals
TERMINALLING & STORAGE – SPECIALITY TERMINALS • 17 specialty terminal facilities with aggregate storage capacity of 3.5 million barrels • Provide storage and handling services for a broad range of products including ammonia, asphalt, sulfur, sulfuric acid, fuel oil, crude oil and other petroleum pro
Slide 20: Terminalling & Storage – Corpus Christi Crude Terminal (CCCT)
TERMINALLING & STORAGE – CORPUS CHRISTI CRUDE TERMINAL (CCCT) • Strategically located at the primary downstream delivery point for growing Eagle Ford Shale production (Terminal point of the Harvest Pipeline) • Initial operations began in 2012. This terminal has contributed the majority of recent seg
Slide 21: Terminalling & Storage - Smackover Refinery
TERMINALLING & STORAGE ‐ SMACKOVER REFINERY • November 2009 drop‐down from MRMC for $45 million • 7,700 bpd nameplate capacity naphthenic lube refinery in Smackover, AR • Approximately 10% of total US naphthenic lube market share • Specialized facility converts crude oil into naphthenic lubricants f
Slide 22: Terminalling & Storage - Packaging Assets
TERMINALLING & STORAGE ‐ PACKAGING ASSETS • October 2012 drop‐down of specialty lubricant product blending and packaging assets in Smackover, AR; entire platform rebranded as Martin Lubricants • 235,000 sq. ft. warehouse • 5.3 million gallons bulk storage • Central hub for branded and private label
Slide 23: Natural Gas Services
MIDSTREAM Poa Rt NE RS NATURAL GAS SERVICES
Slide 24: Segment Overview – Natural Gas Services
SEGMENT OVERVIEW – NATURAL GAS SERVICES • MMLP’s Natural Gas Services segment has significantly Adjusted Segment EBITDA (1) changed since 2012 $40.0 $ in millions $34.9 • Recent acquisition of remaining 57.8% of Cardinal Gas $30.0 Storage Partners (Cardinal) for $120 million • Recent acquisition of
Slide 25: Natural Gas Services – Cardinal Gas Storage
NATURAL GAS SERVICES– CARDINAL GAS STORAGE Transaction Overview: Strategically Located Assets • On September 2nd MMLP purchased the remaining 57.8% of Cardinal Gas Storage Partners from Energy Capital Partners • $120 million cash paid for 57.8% Category A Interest • ~$265 million payoff of 100% Card
Slide 26: Natural Gas Services – Cardinal Gas Storage
NATURAL GAS SERVICES– CARDINAL GAS STORAGE Long‐term natural gas storage markets: • Demand Growth – Over the next 5 to 10 years growing demand in the form of LNG exports, increasing industrial and petrochemical use, coal‐fired power plant retirement, and natural gas exports to Mexico are expected to
Slide 27: Natural Gas Services – West Texas LPG Pipeline L.P.
NATURAL GAS SERVICES – WEST TEXAS LPG PIPELINE L.P. • On May 14th, Martin Midstream Partners L.P. closed the acquisition of 19.8% limited partnership interest and 0.2% general partnership interest in West Texas LPG Pipeline L.P. (“WTLPG”). WTLPG is operated by Chevron Pipe Line Company, an affiliate
Slide 28: Sulfur Services
MIDSTREAM Poa Rt NE RS SULFUR SERVICES
Slide 29: Segment Overview – Sulfur Services
SEGMENT OVERVIEW – SULFUR SERVICES • MMLP’s Sulfur Services includes the following key assets: Adjusted Segment EBITDA • 4 sulfur prillers (Texas & California) with a combined $50.0 $44.6 prilling capacity of 6,500 tons per day • 7 sulfur‐based fertilizer production plants including: $37.5 $34.4 $34
Slide 30: Sulfur Services – Legacy Sulfur Integrated Value Chain
SULFUR SERVICES – LEGACY SULFUR INTEGRATED VALUE CHAIN • Provides transportation, processing and marketing services necessary to move product from producer to consumer • Intermodal transportation offers multiple fee opportunities for the Partnership 30
Slide 31: Marine Transportation
MIDSTREAM Poa Rt NE RS MARINE TRANSPORTATION
Slide 32: Segment Overview – Marine Transportation
SEGMENT OVERVIEW – MARINE TRANSPORTATION • MMLP’s Marine Transportation segment includes the following key assets: • 56 inland marine tank barges • 26 inland push‐boats • 4 offshore tug barge units • Ability to handle specialty products (asphalt, fuel oil, gasoline, sulfur and other bulk liquids) •
Slide 33: Marine Transportation: Assets/Contract Structure
MARINE TRANSPORTATION: ASSETS/CONTRACT STRUCTURE Asset(s) Description Services Size (Total Capacity) Location Products Profitability Drivers • 56 inland marine tank barges Marine transportation of • Inland barges ‐ from under • Inland ‐ GICW and • Asphalt • Growing North American • 26 inland push‐bo
Slide 34: Financial Overview
MIDSTREAM Poa Rt NE RS FINANCIAL OVERVIEW
Slide 35: Conservative Financial Strategy
CONSERVATIVE FINANCIAL STRATEGY Target Leverage: Less than 4.50x Total Debt to EBITDA Distribution Policy: Conservative approach to LP distributions Growth Opportunities: • Predominantly organic growth in both natural gas services and terminalling and storage segments • Strategic acquisitions financ
Slide 36: Further Financial Information – EBITDA Reconciliations
FURTHER FINANCIAL INFORMATION EBITDA RECONCILIATIONS
Slide 37: MMLP Adjusted EBITDA Reconciliation – 1st Half 2014
MMLP ADJUSTED EBITDA RECONCILIATION – 1st Half 2014 YTD 6/30/14 Adjusted EBITDA Reconciliation ($ thousands; Excludes Unallocated SG&A) Terminalling & Natural Gas Marine Sulfur Services MMLP Storage Services Transportation Operating Income $18,207 $13,460 $18,401 $282 $ 50,350 Depreciation and 18,39
Slide 38: MMLP Adjusted EBITDA Reconciliation – Year Ended 2013
MMLP ADJUSTED EBITDA RECONCILIATION – YEAR ENDED 2013 2013 Adjusted EBITDA Reconciliation ($ thousands; Excludes Unallocated SG&A) Terminalling & Natural Gas Marine Sulfur Services MMLP Storage Services Transportation Operating Income $35,282 $29,212 $26,002 $9,013 $ 99,509 Depreciation and 31,823 2
Slide 39: MMLP Adjusted EBITDA Reconciliation – Year Ended 2012
MMLP ADJUSTED EBITDA RECONCILIATION – YEAR ENDED 2012 2012 Adjusted EBITDA Reconciliation ($ thousands; Excludes Unallocated SG&A) Terminalling & Natural Gas Marine Sulfur Services MMLP Storage Services Transportation Operating Income $27,944 $13,924 $37,262 $6,751 $ 85,881 Depreciation and 22,976 6
Slide 40: MMLP Adjusted EBITDA Reconciliation – Year Ended 2011
MMLP ADJUSTED EBITDA RECONCILIATION – YEAR ENDED 2011 2011 Adjusted EBITDA Reconciliation ($ thousands; Excludes Unallocated SG&A) Terminalling & Natural Gas Marine Sulfur Services MMLP Storage Services Transportation Operating Income $21,567 $6,267 $27,651 $731 $ 56,216 Depreciation and 19,814 578
Slide 41: Martin Midstream Partners
() MARTIN MIDSTREAM Poa Rt NE RS
Martin Midstream Partners — Non-Deal Roadshow (September 2014) on 6ix