MARTIN MIDSTREAM PARTNERS L.P. 2015 ANALYST & INVESTOR DAY March 24, 2015
MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2015 Welcome & MMLP Overview Joe McCreery, Vice President Finance & Head of Investor Relations Operational Overview Bob Bondurant, Executive Vice President & Chief Financial…
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…
MMLP OVERVIEW Joe McCreery, Vice President Finance & Head of Investor Relations 5
MARTIN RESOURCE MANAGEMENT (MRMC) OVERVIEW Based in Kilgore, TX, MRMC is a leading independent provider of integrated logistics solutions, storage, manufacturing, marketing, and distribution services to energy, petrochemical and…
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…
KEY INVESTMENT HIGHLIGHTS Majority of cash flows generated from fee-based or fee-like contracts Fee-Based Contracts Significant portions consist of reservation charges or minimum fee arrangements Fully Integrated, Diversified asset…
SIGNIFICANT EVENTS SINCE 2012 MRMC sold 49% non- 51MM acquisition of 6 controlling voting interest 134MM acquisition of 20% 41MM divestiture of 6 LPG 273MM divestiture 47MM marine LPG pressure barges and (50% economic) in MMLP's…
UNIQUELY DIVERSIFIED OPERATING MIX Terminalling & Storage Natural Gas Services 64.7 48.8 Marine Transportation Sulfur Services 165.3 Million 18.0 33.8 (all values in millions before unallocated SG&A) 10
MMLP ASSET LOCATIONS ALL SEGMENTS 11
STRONG FEE-BASED CONTRACT MIX Recent Fee-Based Acquisitions Driving MMLP Growth Terminalling & Storage Fee-based, multi-year contracts for traditional storage assets Specialty and Shore Base Terminals (with guaranteed throughput…
EBITDA AND CONTRACT MIX 13
HIGH QUALITY LONG TERM CUSTOMER BASE Long-term customer relationships are a key driver of our success Integrated and complementary business segments uniquely position MMLP Full value chain for handling and logistics capabilities and…
STRONG GENERAL PARTNER SUPPORT Ongoing MRMC businesses help support MMLP Maintains distinct set of assets and business units that are complementary to MMLP Approximately 30% of 2014 MMLP EBITDA derived from contracts with MRMC…
OPERATIONAL OVERVIEW Bob Bondurant, Executive Vice President & Chief Financial Officer
TERMINALLING & STORAGE OVERVIEW MMLP owns or operates 47 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, processing and…
TERMINALLING & STORAGE Specialty Terminals Specialty Terminals Overview Network of 18 owned or operated terminalling facilities to assist in the movement of petroleum products and by-products to and from oil refiners and natural…
TERMINALLING & STORAGE Specialty Terminals - Corpus Christi Crude Terminal Integral Eagle Ford Transload Facility Corpus Christi Crude Terminal Multi-year contract serving one of the largest U.S. 900,000 barrel capacity crude…
TERMINALLING & STORAGE Specialty Terminals Other Refinery Focused Sites Specialized Sites Beaumont Neches South Houston and Omaha Asphalt Multi-service facility recent lease of additional Asphalt terminalling and processing 96…
TERMINALLING & STORAGE Marine Shore-Based Terminals Gulf Coast Distribution Network 29 owned or operated terminals along the Gulf Coast Strategically-located asset base well-positioned to from Blakeley Island, AL to Corpus Christi,…
TERMINALLING & STORAGE Smackover Refinery Specialized Naphthenic Refinery 7,500 bpd capacity naphthenic lube refinery located in Fee-based contract structure provides stable cash flow Smackover, AR Long-term tolling agreement with…
TERMINALLING & STORAGE Martin Lubricants Lubricant Blending & Packaging MMLP purchases base oils to blend and package branded and private label lubricants for agriculture, fleet, and industrial applications Specialty lubricant…
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 an NGL pipeline that runs…
NATURAL GAS SERVICES Cardinal Gas Storage Cardinal Gas Storage Firm Contracted Storage/Fee-Based Cash Flow 50.0 Successful completion of acquisition of remaining 57.8% 41.0 41.9 40.0 37.3 interest for 120 million and refinancing…
NATURAL GAS SERVICES Cardinal Gas Storage Asset Locations Arcadia Gas Storage Salt dome facility (Arcadia, LA) 17.5 bcf Perryville Gas Storage Salt dome facility (Delhi, LA) 8.5 bcf Cadeville Gas Storage Monroe Gas Storage…
NATURAL GAS SERVICES Butanes & Underground Storage Butane Optimization Butanes & Underground Storage 30.0 New railrack at Arcadia, LA to be operational by end of 22.5 25.0 June 2015 creating dual capabilities (truck and rail)…
NATURAL GAS SERVICES West Texas LPG Pipeline L.P. Completed purchase of 20% ownership interests in West Texas LPG Pipeline L.P. (WTLPG) in May 2014 WTLPG includes approximately 2,300 miles of pipeline extending from Eastern New…
NATURAL GAS SERVICES NGL & Propane NGL NGLs 12.0 Assets include 200-mile East Texas Pipeline providing 9.1 10.0 Y-grade deliveries (Kilgore to Beaumont) for 8.2 8.0 millions fractionation; East Texas market volumes gathered…
SULFUR SERVICES OVERVIEW MMLP has an integrated system of sulfur transportation assets and facilities. MMLP gathers molten sulfur from refiners, primarily located on the Gulf Coast, and from natural gas processing plants, primarily…
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…
SULFUR SERVICES Molten Sulfur Marketing Agreements Molten Sulfur 12.0 MMLP enters into agreements with suppliers (typically 10.0 large refiners) and customers to buy and sell molten 8.7 7.6 7.3 8.0 millions sulfur on the…
SULFUR SERVICES Prilled Sulfur Prilling Agreements Sulfur Prilling 12.0 Refinery customers pay MMLP minimum reservation 10.0 8.9 fees and operating fees per ton of sulfur for its prilling 6.7 8.0 millions services 5.0 6.0…
SULFUR SERVICES Fertilizer Fertilizer Overview Fertilizer 25.0 MMLP manufactures and markets sulfur-based fertilizer 19.7 and related sulfur products for agricultural and 20.0 16.2 15.1 millions industrial use from…
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. MMLPs marine transportation…
MARINE TRANSPORTATION Assets Marine Transportation 42 inland marine tank barges 25 inland push-boats 4 offshore tug barge units Ability to handle specialty products (asphalt, fuel oil, gasoline, sulfur and other bulk liquids),…
MARINE TRANSPORTATION Inland & Offshore Profitability Drivers Inland 25.0 Refinery utilization 21.6 20.2 North American shale plays 20.0 16.7 millions Distillate aggregation from MRMC distribution 15.0 Stack emissions…
GROWTH OPPORTUNITIES Wes Martin, Vice President Corporate Development 38
GROWTH OPPORTUNITIES West Texas LPG WTLPG MMLP acquired a 20% interest in WTLPG in May 2014 Original Investment: 135 million for 134 million Potential Growth Capex: 125 million Oneok Partners acquired the remaining 80% of WTLPG…
GROWTH OPPORTUNITIES South Texas Asphalt Terminal South Texas Asphalt Terminal MMLP is working with Martin Product Sales (MRMC) Total Investment: 25-35 million to construct an asphalt terminal to be located in Construction Time:…
GROWTH OPPORTUNITIES Corpus Christi Crude Terminal CCCT In negotiations currently with investment grade Total Investment: 50-60 million counterparty to expand CCCT facilities under a long-term Construction Time: up to 12 months…
FINANCIAL FOUNDATION Joe McCreery, Vice President Finance & Head of Investor Relations 43
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