Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — 2022 Wells Fargo Midstream, Utilities and Renewable Power Symposium
31 slides from Martin Midstream Partners L.p's conference presentation, Dec 7, 2022
Slide 1: 2022 Wells Fargo Midstream, Utilities and Renewable Power Symposium
Martin Midstream Partners L.P. 2022 Wells Fargo Midstream, Utilities and Renewable Power Symposium December 7 – 8, 2022
Slide 2: Disclaimers and Company Information
Disclaimers and Company Information Martin Midstream Partners L.P. Forward-Looking Statements NASDAQ Ticker MMLP Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities
Slide 3: Partnership Overview
Partnership Overview
Slide 4: Martin Midstream at a Glance
Martin Midstream (Nasdaq: MMLP)at a Glance Diversified Specialty Services Midstream Business Strategically Located along the Gulf Coast with Operations in Four Key Business Segments Key Stats • MMLP provides specialty services to major and independent oil and gas companies including refineries, chem
Slide 5: Strategically Located in U.S. Gulf Coast Refinery and Chemical Complex
Strategically Located in U.S. Gulf Coast Refinery and Chemical Complex PADD 3 > 50% of U.S. Refining Capacity MMLP PADD 3 Refinery Coverage Last 6 Months Average Operating Capacity MMLP Smackover 24% Refinery HQ: Kilgore, TX 5% 53% 15% MMLP PADD 3 Refinery Customer Locations 4% Other PADD 3 Refinery
Slide 6: Successfully Repositioned Asset Base to Focus on Core Business Segments
Successfully Repositioned Asset Base to Focus on Core Business Segments • Over the last 5 years, MMLP has successfully completed several non-core asset sales to strengthen the balance sheet, simplify the business model and focus on core business segments and long-term customers along the U.S. Gulf C
Slide 7: Diversified Business with Long-standing Customer Relationships
Diversified Business with Long-standing Customer Relationships 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 refin
Slide 8: 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 Service & Fixed Molten Sulfur Marine Fee EBITDA Shore-Based Terminals MUS Margin Based Propan
Slide 9: Cash Flow Stability from Continuing Operations
Cash Flow Stability from Continuing Operations Continuing operations offer proven historical stability and benefit from diversification and fixed-fee contracts Adjusted Segment EBITDA from Continuing Operations (Pre-Unallocated SG&A) $128mm $111mm(2) $130mm $135mm (1) 2019 – 2021 Actual Segment EBIT
Slide 10: Growth Strategy
Growth Strategy 3 2 Strategic Alliances 1 Internal Organic Growth Utilize industry knowledge, network of customers and suppliers, and strategic asset Organic Growth Projects Attract new customers and base to expand commercial expand current commercial alliances to drive revenue and relationships wit
Slide 11: JV to Produce Electronics Level Sulfuric Acid for Chip Manufacturing
JV to Produce Electronics Level Sulfuric Acid for Chip Manufacturing Project ELSA Overview JV Ownership Overview Samsung DSM Semichem LLC (“DSM”) is a JV between Dongjin USA, Inc. (“DJ”), Samsung Martin Dongjin C&T Opportunity C&T America, Inc. (“SCT”) and MMLP for the construction of an electroni
Slide 12: 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 $55
Slide 13: Operating Segment Overview
Operating Segment Overview
Slide 14: Terminalling & Storage – Operating Overview
Terminalling & Storage – Operating Overview • Operates 27 terminal facilities with aggregate storage capacity of 2.6mm barrels and 1 naphthenic lube refinery Smackover Refinery Fee-based 7,700 bpd capacity naphthenic lube Refined Products Napthenic Crude Oil refinery with a 6,500 bpd minimum volume
Slide 15: Terminalling & Storage – Strategy
Terminalling & Storage – Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($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 16: 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 17: Sulfur – Strategy
Sulfur – Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Largest factor influencing sulfur-based fertilizers in the U.S. is (2) corn acres planted • Significant challenges during the 2019 planting season due to flooding and persistent rainfall. • As of October, 2
Slide 18: Transportation – Operating Overview
Transportation – Operating Overview • Tank truck and marine transportation for the petroleum, petrochemical and chemical industries Land Transportation Service-based, tank truck transportation Products Handled catering to petroleum, petrochemical and • Molten Sulfur chemical industries • General Che
Slide 19: Transportation – Strategy
Transportation – Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Logistics demand driven by refinery utilization and expansion of chemical plants on the Gulf Coast • Expand services in the Land Transportation segment to drive fleet optimization • Marine Transport
Slide 20: 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 21: Natural Gas Liquids – Strategy
Natural Gas Liquids – Strategy Butane Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • MMLP purchases butane at a discount to the Mont Belvieu price in the summer months and sells at a premium to the Mont Belvieu price in the winter months (refinery blending season) • EBITDA is se
Slide 22: Financial Outlook
Financial Outlook
Slide 23: Performance Metrics
Performance Metrics Revenue ($mm) PF Adjusted EBITDA ($mm) (1) (1) Distributable & Free Cash Flow ($mm) Capital Expenditures ($mm) (3) $135mm acquisition of Martin Transport in January 2019 at an attractive 5.7x multiple (4) (4) (2) (1) PF Covenant Compliance EBITDA calculated in accordance with Rev
Slide 24: Credit Profile
Credit Profile Total Debt ($mm) Total Debt/PF Covenant Compliance EBITDA (1) (2) Impact of COVID 19 • Decrease in refinery utilization negatively impacts EBITDA (3) (4) PF Covenant Compliance EBITDA/Adj. Interest Expense (1) Debt Maturity Schedule (3) (1) Pro Forma Covenant Compliance ratios based o
Slide 25: 2022 E Guidance
2022 E Guidance Guidance Range of Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Year Ending 1Q2022 2Q2022 3Q2022 Flow 4Q2022 December 31, Actuals Actuals Actuals (in millions) 2022 (Unaudited) Adjusted EBITDA (pre-unallocated SG&A) $44.0 $42.7 $23.0 $23 - $28 $133 - $138 Unallocate
Slide 26: Appendix
Appendix
Slide 27: Capitalization
Capitalization 9/30/22 12/31/21 Cash $0.0 $0.1 Cash & Equivalents $0.0 $0.1 Revolving Credit Facility(1) $202.0 $159.5 Capital Leases $0.1 $0.3 10.00% 1.5L Senior Secured Notes Due February 2024 $53.8 $53.8 11.50% 2.0L Senior Secured Notes Due February 2025 $291.4 $292.0 Total Debt $547.3 $505.5 Les
Slide 28: MMLP Continuing Operations Adjusted EBITDA Reconciliation
MMLP Continuing Operations Adjusted EBITDA Reconciliation 2019 2020 2021 LTM 9/30/22 Net income (loss) $(174.9) $(6.8) $(0.2) $0.8 Interest expense add back $51.7 $46.2 $54.1 $52.9 Depreciation and amortization $68.3 $61.5 $56.8 $56.9 Income tax expense $1.9 $1.7 $3.4 $6.7 Less: Loss from discontinu
Slide 29: MMLP Covenant Compliance Consolidated EBITDA Reconciliation
MMLP Covenant Compliance Consolidated EBITDA Reconciliation 2019 2020 2021 LTM 9/30/22 Consolidated net income (loss) $(7.0) $(16.0) $(0.1) $20.0 Consolidated interest expense add back $48.0 $43.0 $50.7 $49.8 Depreciation and amortization $63.8 $64.7 $60.2 $60.0 Provision for income tax expense $1.9
Slide 30: MMLP LTM 9/30/22 Adjusted EBITDA from Continuing Operations Reconciliation
MMLP LTM 9/30/22 Adjusted EBITDA from Continuing Operations Reconciliation 4Q21A 1Q22A 2Q22A 3Q22A LTM 9/30/22 Terminalling & Storage Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Smackover Refinery $3.1 $3.4 $3.9 $3.2 $13.6 Service/Fixed Fee Lubricants & Specialty
Slide 31: MMLP Adjusted Segment EBITDA from Continuing Operations Reconciliation
MMLP Adjusted Segment EBITDA from Continuing Operations Reconciliation 2019A 2020A 2021A Terminalling & Storage LTM 9/30/22 Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Smackover Refinery $21.4 $18.0 $14.4 $13.6 Service/Fixed Fee Lubricants & Specialty Products $13.7 $14.8 $16.6 $21.8 Margin-Base