Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — RBC Capital Markets Midstream & Energy Infrastructure Conference 2020
29 slides from Martin Midstream Partners L.p's conference presentation, Nov 18, 2020
Slide 1: Martin Midstream Partners L.P. RBC Capital Markets Midstream & Energy Infrastructure Conference
Martin Midstream Partners L.P. RBC Capital Markets Midstream & Energy Infrastructure Conference November 18-19, 2020 1
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 3
Slide 4: Martin Midstream at a Glance
Martin Midstream at a Glance Diversified Specialty Services Midstream Business with Operations Strategically Located along the Gulf Coast • Operates four key business segments: Terminalling & Storage, Sulfur, Transportation and Natural Gas Liquids Key Stats • Provides specialty services to major and
Slide 5: Martin Midstream at a Glance
Martin Midstream at a Glance 1 Diversified business model provides specialty product handling services • Provides specialty product handling services for hard-to-handle products including molten sulfur, asphalt, sulfuric acid, liquid ammonia and other specialty products • Diversified operations prov
Slide 6: Diversified Business Model
1 Diversified Business Model Terminalling & Sulfur Transportation Natural Gas Liquids Storage Operates 31 terminal Aggregates, stores and Tank truck transportation Purchases NGLs primarily facilities with aggregate transports molten sulfur services for the from refineries and storage capacit
Slide 7: Vertically Integrated Services Provides for Gulf Coast-Centric Asset & Operational Footprint
Vertically Integrated Services Provides 2 for Gulf Coast-Centric Asset & Operational Footprint NE MO WV TN CA AR AL IL MS AZ HQ: Kilgore, TX TX LA FL Corporate Locations Natural Gas Liquids Sulfur Terminalling & Storage Land and Marine Transportation Services 7
Slide 8: Strong Fee-Based Contracts with Limited Commodity Exposure
3 Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown LTM 9/30/2020 Contract Mix Margin Based EBITDA Protection from Fixed Fee EBITDA Commodity Volume-Risk Price-Risk Price Volatility Smackover Refinery Martin Lubricants Terminalling & Specialty Terminals Storage Shore-Bas
Slide 9: Long-Term Relationships, Key Customers
3 Long-Term Relationships, Key Customers • Martin’s fixed fee and margin business provides a combination of Key customers represent long-term, spot and evergreen contracts with key customers. 44% of revenue • Evergreen and spot contracts are anchored by long-term relationships with major and indepen
Slide 10: Continued Capital Discipline to Strengthen Balance Sheet
4 Continued Capital Discipline to Strengthen Balance Sheet Strategic Improvements to Capital Structure Current Maturity Schedule (1) Fine-tuning Capital Structure • Amended the Partnership’s existing Revolving Credit Facility to extend maturity to August 2023 • Reduced commitments under the Revolv
Slide 11: Growth Strategy
4 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 commercia
Slide 12: Experienced and Incentivized Management Team and Strong Parent Support
Experienced and Incentivized Management Team and 5 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 $
Slide 13: Operating Segment Detail
Operating Segment Detail 13
Slide 14: Terminalling & Storage - Overview
Terminalling & Storage - Overview • Operates 31 terminal facilities with aggregate storage capacity of 2.8mm 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) commitment f
Slide 15: Terminalling & Storage - Strategy
Terminalling & Storage - Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Well positioned for energy export projects at Beaumont (2) and Harbor Island terminals • Growth in Grease Specialty Products with limited capital requirements • Upside for underutilized tank
Slide 16: Sulfur - Overview
Sulfur - Overview • Stores and prills molten sulfur, manufactures and markets sulfur-based fertilizers and related sulfur products Molten Sulfur Fee-based Aggregates, stores and transports molten sulfur from Gulf Coast Molten Sulfur Molten Sulfur Refineries to the Tampa market for • Domestic fertili
Slide 17: Sulfur - Strategy
Sulfur - Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Largest factor influencing sulfur-based fertilizers in the U.S. is (2) corn acres planted ─ Significant challenges during the 2018 and 2019 planting season due to flooding and persistent rainfall. ─ As of O
Slide 18: Transportation - Overview
Transportation - 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 Chemicals • Lubri
Slide 19: Transportation - Strategy
Transportation - Strategy Segment Strategy Adj. Segment EBITDA from Continuing Operations ($mm) (1) • Logistics refinery demand driven by new chemical plants as well as refinery utilization and expansion on the Gulf Coast • Expand services in the Land Transportation segment to drive fleet optimizati
Slide 20: Natural Gas Liquids - Overview
Natural Gas Liquids - Overview • Purchases NGLs primarily from refineries and natural gas processors then stores and transports NGLs for delivery to refineries, industrial NGL users and wholesale delivery to propane retailers Butane Margin spread generates revenue by purchasing Rail/ Retail Terminal
Slide 21: Natural Gas Liquids - Strategy
Natural Gas Liquids - Strategy Butane Strategy Adj. Segment EBITDA from Continuing Operations ($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 Avg. 10-year Sale Month
Slide 22: Appendix
Appendix 22
Slide 23: Capitalization
Capitalization 9/30/2020 Cash $1.9 Cash & Equivalents $1.9 Revolving Credit Facility $205.0 Capital Leases $3.5 Secured Debt $208.5 7.25% Senior Unsecured Notes Due February 2021 $28.8 10.00% Senior Secured Notes Due February 2024 $53.8 11.50% Senior Secured Notes Due February 2025 $292.0 Total Debt
Slide 24: Performance Metrics
Performance Metrics Revenue ($mm) PF Adjusted EBITDA ($mm) (1) Distributable & Free Cash Flow ($mm) Capital Expenditures ($mm) $135mm acquisition of Martin Transport in (3) January 2019 at an attractive 5.7x multiple (4) (4) (2) (1) PF Covenant Compliance EBITDA calculated in accordance with Revolvi
Slide 25: Credit Profile
Credit Profile Total Debt ($mm) (1) Total Debt/PF Covenant Compliance EBITDA (2) PF Covenant Compliance EBITDA/Adj. Interest Expense (2) (1) Total debt is net of Inventory Sublimit, subject to a cap on Inventory Sublimit deductions as prescribed by Credit Agreement. (2) Leverage, PF Covenant Complia
Slide 26: MMLP LTM 9/30/2020 Adjusted EBITDA from Continuing Operations Reconciliation
MMLP LTM 9/30/2020 Adjusted EBITDA from Continuing Operations Reconciliation 4Q19A 1Q20A 2Q20A 3Q20A LTM Terminalling & Storage Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA 9/30/2020 Smackover Refinery $5.5 $4.7 $4.5 $4.7 $19.4 Martin Lubricants $2.9 $3.5 $2.8 $5.0 $14.2 Specialty
Slide 27: MMLP Covenant Compliance Consolidated EBITDA Reconciliation
MMLP Covenant Compliance Consolidated EBITDA Reconciliation LTM 2016 2017 2018 2019 9/30/2020 Consolidated net income (loss) $36.7 $22.3 $(7.3) $(7.0) $5.5 Consolidated interest expense add back $44.0 $45.9 $49.5 $48.0 $40.4 Depreciation and amortization $95.5 $87.8 $80.0 $63.8 $63.8 Provision for i
Slide 28: MMLP Continuing Operations Adjusted EBITDA Reconciliation
MMLP Continuing Operations Adjusted EBITDA Reconciliation $ millions 2016 2017 2018 2019 LTM 9/30/2020 Net income (loss) $31.0 $19.9 $55.7 $(174.9) $2.4 Interest expense add back $46.1 $47.8 $52.3 $51.7 $43.3 Depreciation and amortization $93.9 $87.5 $80.3 $68.3 $60.9 Income tax expense $0.7 $0.2 $0
Slide 29: 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