Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — 2021 Wells Fargo Virtual Midstream, Utility & Renewables Symposium
28 slides from Martin Midstream Partners L.p's conference presentation, Dec 8, 2021
Slide 1: Martin Midstream Partners L.P. 2021 Wells Fargo Virtual Midstream, Utility & Renewables Symposium
Martin Midstream Partners L.P. 2021 Wells Fargo Virtual Midstream, Utility & Renewables Symposium December 8 - 9, 2021
Slide 2: Company Information and Forward-Looking Statements
Company Information Martin Midstream Partners L.P. Forward-Looking Statements Statements about the Partnership's outlook and all other statements in this NASDAQ Ticker MMLP release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Refo
Slide 3: Partnership Overview
Partnership Overview
Slide 4: Martin Midstream (Nasdaq:MMLP) at a Glance
Martin Midstream (Nasdaq:MMLP) at a Glance Diversified Specialty Services Midstream Business with Operations in Four Key Business Segments Strategically Located along the Gulf Coast • Provides specialty services to major and independent oil and Key Stats gas companies including refineries, chemical
Slide 5: Diversified Business Model Providing Specialty Product Services
Diversified Business Model Providing Specialty Product Services Terminalling & Sulfur Transportation Natural Gas Liquids Storage Provides storage, Aggregates, stores and Tank truck transportation Purchases NGLs primarily refining, blending, transports molten sulfur services for the from refi
Slide 6: Strong Fee-Based Contracts with Limited Commodity Exposure
Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown Terminalling & Storage Sulfur Transportation Natural Gas Liquids Smackover Refinery Sulfur Prilling Land NGLs Specialty Terminals Marine Fixed Fee EBITDA Molten Sulfur Shore-Based Terminals MUS Margin Based EBITDA Lubricant
Slide 7: Continued Capital Discipline to Strengthen Balance Sheet
Continued Capital Discipline to Strengthen Balance Sheet Strategic Improvements to Capital Structure Current Maturity Schedule Amended the Partnership’s existing Revolving Credit Facility to extend maturity to August 2023 (2) Reduced commitments under the Revolving Credit Facility to $275mm Redu
Slide 8: Growth Strategy
Growth Strategy 3 2 Strategic Alliances 1 Internal Organic Growth Utilize industry knowledge, network of customers and suppliers, and strategic asset base to expand commercial alliances to drive Organic Growth Projects Attract new customers and expand revenue and cash flow growth current commercial
Slide 9: Experienced and Incentivized Management Team and Strong Parent Support
Experienced and Incentivized Management Team and Strong Parent Support Martin Resource Management Corporation (“MRMC”) Martin Key has significantly assisted in MMLP’s growth and is Resource Operating committed to the Partnership Management 100% Subsidiaries Corporation ─ MRMC has provided over $55
Slide 10: Operating Segment Overview
Operating Segment Overview
Slide 11: Terminalling & Storage – Operating Overview
Terminalling & Storage – Operating Overview • Operates 30 terminal facilities with aggregate storage capacity of 2.6mm barrels Smackover Refinery Fee-based 7,700 bpd capacity naphthenic lube Refined Products Napthenic Crude Oil refinery with a 6,500 bpd minimum volume Supplied by Cross Oil (MRMC) co
Slide 12: Terminalling & Storage - Strategy
Terminalling & Storage - Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) (2) • Well positioned for energy export projects at the Beaumont, TX terminals • Growth in Grease Specialty Products with limited capital requirements • Upside for underutilized tanks at both
Slide 13: Sulfur – Operating Overview
Sulfur – Operating Overview • Stores and prills molten sulfur, manufactures and markets sulfur-based fertilizers and related sulfur products Molten Sulfur Fee-based Aggregates, stores and transports molten sulfur from Gulf Coast Molten Sulfur Molten Sulfur Refineries to the Tampa market for • Domest
Slide 14: Sulfur - Strategy
Sulfur - Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Largest factor influencing sulfur-based fertilizers in the U.S. is corn acres planted (2) ─ Significant challenges during the 2018 and 2019 planting season due to flooding and persistent rainfall. ─ As of S
Slide 15: Transportation – Operating Overview
Transportation – Operating Overview • Tank truck and marine transportation for the petroleum, petrochemical and chemical industries Land Transportation Fee-based, tank truck transportation catering to Products Handled petroleum, petrochemical and chemical • Molten Sulfur industries • General Chemica
Slide 16: Transportation - Strategy
Transportation - Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Logistics refinery demand driven by new chemical plants as well as refinery utilization and expansion on the Gulf Coast • Expand services in the Land Transportation segment to drive fleet optimizati
Slide 17: Natural Gas Liquids – Operating Overview
Natural Gas Liquids – Operating Overview • Purchases NGLs primarily from refineries and natural gas processors then stores and transports NGLs for delivery to refineries, industrial NGL users and wholesale delivery to propane retailers Butane Margin spread generates revenue by purchasing Rail/ Retai
Slide 18: Natural Gas Liquids - Strategy
Natural Gas Liquids - Strategy Butane Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) MMLP purchases at discount to Mont Belvieu price in the summer months and sells at premium to Mont Belvieu price in the winter months (refinery blending season) Sale Months Purchase Months Sale Mo
Slide 19: Financial Summary
Financial Summary
Slide 20: 2021E Guidance
2021E Guidance Guidance Range of Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow YTD 3Q2021 Year Ending (in millions) Actuals December 31, 2021 (Unaudited) Adjusted EBITDA $74.9 $95 - 102 Less: Interest expense $40.4 $49 Income tax expense, net of deferred $0.7 - Amortization of
Slide 21: Performance Metrics
Performance Metrics Revenue ($mm) PF Adjusted EBITDA ($mm) (1) Distributable & Free Cash Flow ($mm) Capital Expenditures ($mm) $135mm acquisition of Martin Transport in January 2019 at an (3) attractive 5.7x multiple (4) (4) (2) (1) PF Covenant Compliance EBITDA calculated in accordance with Revolvi
Slide 22: Credit Profile
Credit Profile Total Debt ($mm) Total Debt/PF Covenant Compliance EBITDA (1) Impact of COVID 19 • Decrease in refinery utilization negatively impacts EBITDA Seasonal Impact of NGL Inventory Build increases Total Debt PF Covenant Compliance EBITDA/Adj. Interest Expense (1) (1) Pro Forma Covenant Comp
Slide 23: Capitalization
Capitalization 9/30/2021 12/31/2020 Cash $6.8 $5.0 Cash & Equivalents $6.8 $5.0 Revolving Credit Facility(1) $208.5 $148.0 Capital Leases $0.3 $3.0 7.25% Senior Unsecured Notes Due February 2021(1) -- $28.8 10.00% 1.5L Senior Secured Notes Due February 2024 $53.8 $53.8 11.50% 2.0L Senior Secured Not
Slide 24: Appendix
Appendix
Slide 25: MMLP LTM 9/30/2021 Adjusted EBITDA from Continuing Operations Reconciliation
MMLP LTM 9/30/2021 Adjusted EBITDA from Continuing Operations Reconciliation 4Q20A 1Q21A 2Q21A 3Q21A LTM Terminalling & Storage Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA 9/30/2021 Smackover Refinery $4.2 $4.0 $3.9 $3.4 $15.5 Lubricants & Specialty Products $3.4 $4.0 $3.4 $4.9 $
Slide 26: MMLP Covenant Compliance Consolidated EBITDA Reconciliation
MMLP Covenant Compliance Consolidated EBITDA Reconciliation 2018 2019 2020 LTM 09/30/2021 Consolidated net loss $(7.3) $(7.0) $(16.0) $(23.6) Consolidated interest expense add back $49.5 $48.0 $43.0 $51.0 Depreciation and amortization $80.0 $63.8 $64.7 $61.8 Provision for income tax expense $0.4 $1.
Slide 27: MMLP Continuing Operations Adjusted EBITDA Reconciliation
MMLP Continuing Operations Adjusted EBITDA Reconciliation $ millions 2018 2019 2020 LTM 09/30/2021 Net income (loss) $55.7 $(174.9) $(6.8) $(13.6) Interest expense add back $52.3 $51.7 $46.2 $54.3 Depreciation and amortization $80.3 $68.3 $61.5 $58.5 Income tax expense $0.6 $1.9 $1.7 $2.3 Less: (Inc
Slide 28: Disclaimers: Use of Non-GAAP Financial Measures
Disclaimers 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 princi