Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — Wells Fargo Midstream & Utility Symposium 2018
41 slides from Martin Midstream Partners L.p's conference presentation, Dec 5, 2018
Slide 1: Wells Fargo Midstream & Utility Symposium
Wells fargo Midstream & utility symposium December 5-6, 2018 www.martinmidstream.com
Slide 2: Use of Non-GAAP Financial Measures
MARTIN MIDSTREAM PARTNERS L.P. 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 wi
Slide 3: Forward Looking Statements
MARTIN MIDSTREAM PARTNERS L.P. 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 statemen
Slide 4: Overview
MARTIN MIDSTREAM PARTNERS L.P. overview
Slide 5: Partnership Overview
MARTIN MIDSTREAM PARTNERS L.P. Partnership Overview • NASDAQ Listed: MMLP • Formed October 31, 2002 • MMLP is a publicly traded, diversified master limited partnership with operations including: Natural Gas Services Terminalling & Storage Sulfur Services Marine Transportation • MMLP Trading
Slide 6: 2018E Guidance by Segment
MARTIN MIDSTREAM PARTNERS L.P. 2018E Guidance by Segment Natural Gas Services Terminalling & Storage $59.9 $57.2 $ millions Sulfur Services $138.0* million Adjusted Marine Transportation $26.5 EBITDA $10.2 ($153.8* million before $15.8 million unallocated SG&A and other non-operating income) Mainten
Slide 7: Strong Fee-Based Contract Mix
MARTIN MIDSTREAM PARTNERS L.P. Strong Fee-Based Contract Mix Natural Gas Services • Fee-based, multi-year natural gas storage contracts (weighted average * life approximately 3.0 years as of December 31, 2017) • Margin-based, wholesale NGLs Terminalling & Storage • Fee-based contracts for traditiona
Slide 8: Natural Gas Services Overview
MARTIN MIDSTREAM PARTNERS L.P. Natural Gas Services Overview • Cardinal Gas Storage operates approximately 50 billion cubic feet of natural gas storage capacity across four facilities throughout northern Louisiana and Mississippi. • MMLP distributes NGLs purchased primarily from refineries and natur
Slide 9: Cardinal Gas Storage
MARTIN MIDSTREAM PARTNERS L.P. – natural gas services Cardinal Gas Storage Firm Contracted/Fee-Based Storage Model Cardinal Contract Summary Working Gas Currently • Firm contracted model (90%) for natural gas Type Capacity (bcf) Contracted Years storage with interruptible service upside Arcadia Salt
Slide 10: Cardinal Gas Storage Asset Overview
MARTIN MIDSTREAM PARTNERS L.P. – natural gas storage Cardinal Gas Storage Asset Overview Monroe Gas Storage Site Arcadia Gas Storage • Salt dome facility (Arcadia, Louisiana) – 16.0 bcf Cadeville Gas Storage • Depleted reservoir facility (Monroe, Louisiana) – 17.0 bcf Perryville Gas Storage Monroe G
Slide 11: Butane Optimization
MARTIN MIDSTREAM PARTNERS L.P. – natural gas services Butane Optimization Butane Optimization • Refineries adjust the vapor pressure of gasoline to meet seasonal EPA standards and blend butane into the gasoline pool during winter months. • MMLP owns and leases a network of underground storage facili
Slide 12: NGLs & Propane
MARTIN MIDSTREAM PARTNERS L.P. – natural gas services NGLs & Propane NGLs Propane • Assets include 200-mile East Texas Pipeline • Wholesale propane distribution to approximately transporting Y-grade from Kilgore to Beaumont, 100 regional customers throughout the Texas for fractionation; East Texas m
Slide 13: Terminalling & Storage Overview
MARTIN MIDSTREAM PARTNERS L.P. Terminalling & Storage Overview • MMLP operates 38 terminal facilities with an aggregate storage capacity of 2.9 million barrels. • These facilities provide storage, refining, blending, packaging and handling services of petroleum products and by- products and petroche
Slide 14: Marine Shore-Based Terminals
MARTIN MIDSTREAM PARTNERS L.P. – Terminalling & Storage Marine Shore-Based Terminals Gulf Coast Fuel and Lubricant Distribution Network • 22 terminals along the Gulf Coast from Theodore, • Additional logistical support services provided: Alabama to Port O’Connor, Texas • Storage and handling of tubu
Slide 15: Martin Lubricants
MARTIN MIDSTREAM PARTNERS L.P. – terminalling & storage Martin Lubricants Lubricant Blending & Packaging • Specialty lubricant product blending and packaging assets located within MMLP’s Smackover Refinery in Smackover, Arkansas include: • 235,000 sq. ft. warehouse Lubricant Packaging Facility, Smac
Slide 16: Smackover Refinery
MARTIN MIDSTREAM PARTNERS L.P. – terminalling & storage Smackover Refinery Specialized Naphthenic Refinery • 7,700 bpd capacity naphthenic lube refinery located • Fee-based contract structure provides stable cash flow. in Smackover, Arkansas • Long-term tolling agreement with MRMC • Specialized faci
Slide 17: Specialty Terminals
MARTIN MIDSTREAM PARTNERS L.P. – terminalling & storage Specialty Terminals Specialty Terminals Overview • Network of 14 terminals which facilitate the movement of petroleum products and by-products and petrochemicals from oil refiners and natural gas processing facilities • Specialized capabilities
Slide 18: Specialty Terminals: Hard to Handle Products
MARTIN MIDSTREAM PARTNERS L.P. – terminalling & Storage Specialty Terminals Expertise In “Hard to Handle” Product and By-Product Logistics Specialized Sites Specialized Sites (continued) • Hondo Asphalt Terminal • South Houston and Omaha Asphalt • Asphalt terminalling and processing facilities • Fac
Slide 19: Specialty Terminals (continued)
MARTIN MIDSTREAM PARTNERS L.P. – terminalling & Storage Specialty Terminals Expertise In “Hard to Handle” Product and By-Product Logistics Specialized Sites (continued) • Beaumont Neches • Multi-service terminal • Sulfur offtake and gathering point for Texas and Louisiana refiners • Deep water and b
Slide 20: Sulfur Services Overview
MARTIN MIDSTREAM PARTNERS L.P. Sulfur Services Overview • Molten sulfur, a refinery by-product is aggregated, stored and prilled through MMLP’s integrated value chain systems along the U.S. Gulf Coast and Northern California region. • MMLP manufactures and markets sulfur-based fertilizers and relate
Slide 21: Integrated Sulfur Value Chain
MARTIN MIDSTREAM PARTNERS L.P. – sulfur services Integrated Sulfur Value Chain • Provides transportation, processing and marketing services necessary to move product from producer to consumer • Intermodal transportation offers multiple fee opportunities for MMLP 21
Slide 22: Fertilizer
MARTIN MIDSTREAM PARTNERS L.P. – sulfur services Fertilizer Fertilizer Overview Supply/Demand • MMLP manufactures and markets sulfur-based • The single largest factor influencing fertilizer demand fertilizers and related sulfur products for in the U.S. is corn acres planted. agricultural and industr
Slide 23: Molten Sulfur
MARTIN MIDSTREAM PARTNERS L.P. – sulfur services Molten Sulfur Handling and Transportation Agreement • MMLP transports molten sulfur from U.S. Gulf Coast refineries to the Tampa market for fertilizer production. Supply Demand • Sulfur production is driven by refinery utilization • Demand for sulfur
Slide 24: Prilled Sulfur
MARTIN MIDSTREAM PARTNERS L.P. – sulfur services Prilled Sulfur Prilling Agreements Terminal Location Production Products Stored Capacity • Refiners pay MMLP reservation fees, plus Neches Beaumont, 5,500 metric Molten, prilled & additional operating fees for prilling services Texas tons/day granulat
Slide 25: Marine Transportation Overview
MARTIN MIDSTREAM PARTNERS L.P. Marine Transportation Overview • MMLP utilizes inland and offshore tows to provide marine transportation of petroleum products and by-products. • MMLP’s marine transportation business operates coastwise along the Gulf of Mexico, East Coast and on the U.S. inland waterw
Slide 26: Marine Transportation Assets
MARTIN MIDSTREAM PARTNERS L.P. – marine transportation Assets Marine Transportation • 33 inland marine tank barges • 18 inland push-boats • 1 offshore tug and barge unit • Ability to handle specialty products (asphalt, fuel oil, gasoline, sulfur and other bulk liquids), which complements MMLP’s Spec
Slide 27: Inland & Offshore: Current Environment
MARTIN MIDSTREAM PARTNERS L.P. – marine transportation Inland & Offshore Current Environment • Weak day-rates continue even as utilization has improved • Contract tenor trending toward short term and spot market • Asset rationalization continues with $2.6 million in assets currently held for sale •
Slide 28: Recent Announcements
MARTIN MIDSTREAM PARTNERS L.P. Recent announcements
Slide 29: MTI Overview
MARTIN TRANSPORT, INC. MTI Overview MTI operates and provides tank truck transportation services catering to the petroleum, petrochemical and chemical industries primarily across the Southeast U.S. MTI’s “refinery and petrochemical services” model is focused on transportation of heavy tank botto
Slide 30: Key Customer Overview
MARTIN TRANSPORT, INC. Key Customer Overview MTI’s operations are underscored by long-term customer relationships. LPG Trailer Customer Concentration* Top Customers - September 30, 2018 Customer % of Total Relationship Length Investment Grade Customer 1 11% > 20 years Yes Customer 2 8% > 20 years
Slide 31: Marketing Plan
MARTIN TRANSPORT, INC. Marketing Plan Assets include a fleet of trucks and standard and specialty trailers as well as 23 truck locations strategically located throughout the Gulf Coast and Mid-West. Current asset base is positioned to serve increasing truck volume with minimal capital needs. Tra
Slide 32: Appendix
MARTIN MIDSTREAM PARTNERS L.P. APPENDIX
Slide 33: Capitalization
MARTIN MIDSTREAM PARTNERS L.P. Capitalization 12/31/2017 $ millions 9/30/2018 DEBT Revolving Credit Facility Due March 2020 $445.0 $330.0 Senior Secured Debt $445.0 $330.0 Senior Notes Due February 2021 $373.8 $373.8 Total Debt $818.8 $703.8 EQUITY Partners’ Capital $298.2 $284.9 Total Capitalizatio
Slide 34: Fee-based Cash Flow Reconciliation for 2018
MARTIN MIDSTREAM PARTNERS L.P. Fee-based Cash Flow Reconciliation for 2018 1Q18A 2Q18A 3Q18A 4Q18E 2018E Natural Gas Services Cardinal $ 10.2 $ 8.7 $ 6.0 $ 6.3 $ 31.2 Fixed Fee Butane $ 9.1 $ (0.4) $ 0.6 $ 14.2 $ 23.5 Margin NGLs $ - $ 0.5 $ 0.2 $ 0.5 $ 1.2 Fixed Fee Propane $ 2.5 $ 0.3 $ 0.2 $ 1.0
Slide 35: 2018E Total Capital Expenditures Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2018E Total Capital Expenditures Reconciliation (2) (2) (1) $ millions (1) For 2018, One Time M-CapEx Items include an environmental project at the Smackover Refinery (MBBR* - $3.3MM) and five-year regulatory dry docking for Marine Transportation assets (Drydocking - $
Slide 36: 2018E Adjusted EBITDA Guidance Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2018E Adjusted EBITDA Guidance Reconciliation Natural Gas Terminalling Sulfur Marine Interest SG&A 2018E * Services * & Storage Services Transportation Expense Income from continuing operations $34.8 $16.6 $17.4 $2.5 $(17.2) $(50.9) $3.2 Interest expense add back -- --
Slide 37: 2017 Adjusted EBITDA and GAAP Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2017 Adjusted EBITDA and GAAP Reconciliation Natural Gas Terminalling Sulfur Marine Interest 2017 SG&A Services & Storage Services Transportation Expense Actual Net income (loss) $53.5 $3.3 $25.9 $(1.2) $(16.6) $(47.8) $17.1 Interest expense add back -- -- -- -- -- $47
Slide 38: 2016 Adjusted EBITDA and GAAP Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2016 Adjusted EBITDA and GAAP Reconciliation Natural Gas Terminalling Sulfur Marine Interest 2016 SG&A Services & Storage Services Transportation Expense Actual Net income (loss) $43.1 $44.1 $26.8 $(19.8) $(16.4) $(46.1) $31.7 Interest expense add back -- -- -- -- -- $
Slide 39: 2015 Adjusted EBITDA and GAAP Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2015 Adjusted EBITDA and GAAP Reconciliation Natural Gas Terminalling Sulfur Marine Interest 2015 SG&A Services & Storage Services Transportation Expense Actual Income (loss) from continuing operations $47.6 $18.8 $27.1 $4.6 $(17.6) $(43.3) $37.2 Interest expense add b
Slide 40: 2014 Adjusted EBITDA and GAAP Reconciliation
MARTIN MIDSTREAM PARTNERS L.P. 2014 Adjusted EBITDA and GAAP Reconciliation Natural Gas Terminalling Sulfur Marine Interest 2014 SG&A Services & Storage Services Transportation Expense Actual Income (loss) from continuing operations $36.1 $27.0 $25.7 $3.2 $(56.2) $(42.2) $(6.4) Interest expense add
Slide 41: Contact Information
4200 B STONE ROAD KILGORE, TEXAS 75662 877-256-6644 WWW.MARTINMIDSTREAM.COM IR@MARTINMLP.COM
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