Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — 2016 MLPA Investor Conference
25 slides from Martin Midstream Partners L.p's conference presentation, Jun 2, 2016
Slide 1: MLPA Conference June 2, 2016
M L PA C O N F E R E N C E JUNE 2, 2016
Slide 2: 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 general
Slide 3: 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 ide
Slide 4: Martin Midstream Partners L.P. Overview
M A R T I N M I D S T R E A M PA R T N E R S L . P. O V E R V I E W
Slide 5: Martin Resource Management (MRMC) Overview
MARTIN RESOURCE MANAGEMENT (MRMC) OVERVIEW • Based in Kilgore, TX, MRMC is a leading independent provider of storage, manufacturing, marketing, and distribution services to energy, petrochemical and other industrial concerns • MRMC and its legacy companies have been operating since 1951 • Approximat
Slide 6: 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 7: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Majority of cash flows generated from fee-based contracts Fee-Based Contracts • Significant portions consist of reservation charges or minimum fee arrangements • Refinery centric, diversified asset base with four complementary business units that create a Fully Integrated
Slide 8: Uniquely Diversified Operating Mix
UNIQUELY DIVERSIFIED OPERATING MIX Natural Gas Services Terminalling & Storage $84.2 $72.0 $183.6 Adjusted EBITDA Marine Transportation Sulfur Services ($199.7 million before $16.1 million unallocated SG&A and other non-operating income) $14.2 $29.3 8
Slide 9: MMLP Asset Locations – All Segments
MMLP ASSET LOCATIONS – ALL SEGMENTS 9
Slide 10: Strong Fee-Based Contract Mix
STRONG FEE-BASED CONTRACT MIX Natural Gas Services • Fee-based, multi-year natural gas storage contracts (weighted average life greater than 4.0 years as of March 31, 2016) • Fee-based regulated common carrier tariffs (WTLPG) • Margin-based wholesale NGLs Terminalling & Storage • Fee-based, multi-ye
Slide 11: High Quality Long-Term Customer Base
HIGH QUALITY LONG-TERM CUSTOMER BASE • Long-term customer relationships are a key driver of our success • Full value chain solutions for handling and logistics • Customers include some of the largest, most profitable businesses in the energy industry. These include major oil and gas companies, indep
Slide 12: Strong General Partner Support
STRONG GENERAL PARTNER SUPPORT • MRMC businesses help support MMLP • MRMC’s distinct assets and business units are complementary to MMLP • Approximately 25% of 2015 MMLP Adjusted EBITDA derived from contracts with MRMC • MRMC has significantly assisted in MMLP’s growth • MMLP is not a “financially e
Slide 13: Segment & Operational Overview
S E G M E N T & O P E R AT I O N A L O V E R V I E W
Slide 14: Natural Gas Services Overview
NATURAL GAS SERVICES OVERVIEW MMLP provides wholesale distribution of natural gas liquids (NGLs) to propane retailers, refineries and industrial NGL users in Texas and the southeastern U.S. MMLP owns Cardinal Gas Storage Partners LLC, which is focused on the operation and management of 50 Bcf in nat
Slide 15: Natural Gas Services Profitability Drivers
NATURAL GAS SERVICES PROFITABILITY DRIVERS Natural Gas Services • Cardinal Gas Storage • Natural Gas production/supply • Geographical basis differentials • Seasonal demand • Natural Gas price volatility • Butane • Refinery utilization • Refined product/Gasoline demand • Seasonal differentials given
Slide 16: Terminalling & Storage
TERMINALLING & STORAGE MMLP owns or operates 45 terminal facilities with an aggregate storage capacity of 4.2 million barrels. These facilities are located across the U.S. Gulf Coast region and provide storage, refining, blending, packaging, and handling services for producers and suppliers of petro
Slide 17: Terminalling & Storage Profitability Drivers
TERMINALLING & STORAGE PROFITABILITY DRIVERS Terminalling & Storage • Corpus Christi Crude and Specialty Terminals • Eagle Ford production (CCCT) • Refinery dependency on moving by-products such as asphalt, fuel oil, molten sulfur, ammonia, sulfuric acid • Shore-Based Terminals • Consistent cash flo
Slide 18: Sulfur Services Overview
SULFUR SERVICES OVERVIEW MMLP has an integrated system of sulfur aggregation facilities and transportation assets. MMLP gathers molten sulfur from refiners, primarily located on the Gulf Coast. Molten sulfur is either marketed to fertilizer and industrial companies on a fixed margin basis or prilled
Slide 19: Sulfur Services Profitability Drivers
SULFUR SERVICES PROFITABILITY DRIVERS Sulfur Services • Fertilizer • Macro agricultural demand (forecast calls for a slight increase in corn acreage planted for 2016) • Long-term diminishing and inadequate sulfur levels in U.S. soil, thus requiring greater use of sulfur-based fertilizer in the U.S.
Slide 20: Sulfur Services Integrated Value Chain
SULFUR SERVICES 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 20
Slide 21: Marine Transportation Overview
MARINE TRANSPORTATION OVERVIEW MMLP utilizes a fleet of inland and offshore tows to provide marine transportation of petroleum products and by-products produced in oil refining and natural gas processing. MMLP’s marine transportation business operates coastwise along the Gulf of Mexico, East Coast a
Slide 22: Appendix
APPENDIX PHi1G
Slide 23: Capitalization
CAPITALIZATION $ millions 12/31/2015 03/31/2016 ee Debt Revolving Credit Facility Due 2018 $498.0 $506.0 Senior Secured Debt $498.0 $506.0 Senior Notes Due February 2021 $373.8 $373.8 Total debt $871.8 $879.8 Partners’ Capital $393.9 $377.1 Total Capitalization $1,265.7 $1,256.9 Market Capitalizatio
Slide 24: Adjusted EBITDA and GAAP Reconciliation
ADJUSTED EBITDA AND GAAP RECONCILIATION 24
Slide 25: Martin Midstream Partners
2016 | MARTIN MIDSTREAM PARTNERS
Martin Midstream Partners — 2016 MLPA Investor Conference on 6ix