July 2019 Investor Presentation – Martin Midstream Partners Lp

Martin Midstream Partners Lp · Jul 31, 2019 · 36 slides

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Martin Midstream Partners L.P. Investor Presentation July 2019
Presentation Outline 1. Company Overview 2. Operating Segment Detail 3. Financial Overview Appendix 3
Company Overview
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…
1 Diversified Business Model Terminalling & Sulfur Transportation Natural Gas Liquids Storage Operates 33 terminal Aggregates, stores and Tank truck Purchases NGLs facilities with aggregate transports molten sulfur transportation…
2 Vertically Integrated Services Provided for Gulf Coast-centric Asset & Operational Footprint MO WV TN CA AR AL IL MS NE HQ: Kilgore, TX TX LA FL Corporate Locations Natural Gas Liquids Sulfur…
3 Cash Flow Stability from Continuing Operations Continuing operations offer proven historical stability and benefit from diversification and fixed-fee contracts Adjusted Segment EBITDA from (1) 143mm 136mm 133mm 137mm 129mm…
3 Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown 2018 Contract Mix Margin Based EBITDA Protection from Fixed Fee EBITDA Commodity Volume-Risk Price-Risk Price Volatility Smackover Refinery…
3 Long-Term Relationships, Key Customers Martins fixed fee and margin business provides a combination of long-term, Key customers represent spot and evergreen contracts with key customers 44% of revenue Key customers weighted…
4 Continued Capital Discipline to Strengthen Balance Sheet Strategic Improvements to Capital Structure Total Debt / PF Covenant Compliance EBITDA (1) Sold Underperforming Assets Temporary increase in leverage from irregular events…
4 Strategic Initiatives Objective: De-lever MMLP by divesting non-core assets and businesses, creating the ability to focus on a streamlined corporate strategy and position the Partnership for growth Asset sales to strengthen the…
4 Growth Strategy 3 2 Strategic Alliances Utilize industry knowledge, network of 1 customers and suppliers, and strategic Internal Organic Growth asset base to expand commercial alliances to drive revenue and cash flow Attract…
5 Experienced and Incentivized Management Team and Strong Parent Support Martin Resource Management Corporation (MRMC) has significantly assisted in MMLPs growth and is committed to the partnership Martin Key Resource Operating…
Operating Segment Detail
Terminalling & Storage Operates 33 terminal facilities with aggregate storage capacity of 2.9 million barrels 7,700 bpd capacity naphthenic lube refinery located in Smackover, Arkansas Processes crude oil into finished products…
Terminalling & Storage Contract Overview Key Customer(s) / Smackover Refinery Remaining Weighted Refined Products Average Contract Life Fee-based 6,500 bpd MVC from Napthenic Crude Oil (MRMC) MRMC to process napthenic Supplied by Cross…
Terminalling & Storage Segment Strategy Adj. EBITDA from Continuing Operations (mm) (1) Shore Based Terminals Smackover Refinery Well positioned for energy export projects at Beaumont terminal Specialty Terminals Martin Lubricants…
Sulfur Stores and prills molten sulfur, manufactures and markets sulfur-based fertilizers and related sulfur products (sulfuric acid) to wholesale fertilizer distributors and industrial users Aggregates, stores and transports molten…
Sulfur Contract Overview Key Customer(s) / Molten Sulfur Remaining Weighted Molten Sulfur Molten Sulfur Average Contract Life Fixed fee-based monthly Domestic reservation for handling and Chemical transportation of molten Production…
Sulfur Segment Strategy Adj. EBITDA from Continuing Operations (mm) (1) Largest factor influencing sulfur-based fertilizers in the U.S. is Fertilizer Sulfur Prilling Molten Sulfur Fertilizer Inventory Adj. corn acres planted…
Transportation MTI, a subsidiary of MMLP, operates tank truck transportation services catering to petroleum, petrochemical and chemical industries primarily across the Southeast U.S. Truck and trailer fleet made Trailers Fleet by…
Transportation Key Customer(s) / Contract Overview Remaining Weighted Land Transportation Average Contract Life Fee-based, spot contracts for Products Handled tank truck transportation catering Petroleum to petroleum, petrochemical…
Transportation Segment Strategy Adj. EBITDA from Continuing Operations (mm) (1) Marine (Inland & Offshore) Land Transportation (MTI) Benefit from increased refinery utilization and expansion on the Gulf Coast Marine SG&A MTI Adj.…
Natural Gas Liquids Purchase 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 Network of…
Natural Gas Liquids Contract Overview Rail/ Retail Terminal Key Customer(s) / Butane Remaining Weighted Average Contract Life Margin spread generates revenue by purchasing and Gulf Coast & storing butane during Midwest summer months…
Natural Gas Liquids Butane Strategy Adj. EBITDA from Continuing Operations (mm) (1) MMLP purchases at discount to Mont Belvieu price in the summer months Natural GasatLiquids and sells premium to Mont Belvieu price in the winter…
Financial Overview
Pro Forma Capitalization ( in millions) Recent Financial Updates Capitalization as of June 30, 2019 06/30/2019 Amended RCF reduced Current commitments to 400 million and extended maturity to August 2023 Cash 3 Cash & Equivalents…
Performance Metrics PF Adjusted Revenue (mm) PF Adjusted EBITDA (mm) Reported Revenue Pro Forma Covenant Compliance EBITDA Discountinued Operations Revenue Continuing Operations Adj. EBITDA Continuing Operations Revenue 190 (1)…
Credit Profile Total Debt (mm) (1) Total Debt / PF Covenant Compliance EBITDA (2) 872 817 819 5.1x 5.1x 4.9x 617 4.6x 4.6x 599 2015A 2016A 2017A 2018A 6/30/2019 2015A 2016A 2017A 2018A LTM 6/30/2019 PF Covenant Compliance…
Appendix
Revolving Credit Facility Amended revolving credit facility in order to achieve two primary objectives: February 2018 To accommodate growth capital expenditures necessary for the previously announced WTLPG expansion project To…
MMLP Organizational Structure 16% LP Interest Martin Resource Management Corporation 50% Economic 50% Economic 51% Voting 49% Voting Public Unitholders MMGP Holdings LLC Alinda Capital Partners 84% LP Interest Martin…
MMLP Covenant Compliance Consolidated EBITDA Reconciliation 2015 2016 2017 2018 2Q19 LTM Consolidated Net income (loss) 50.2 36.7 22.3 (7.3) (24.5) Consolidated Interest expense add back 40.5 44.0 45.9 49.5 50.6 Depreciation and…
MMLP 2Q19 LTM ADJUSTED EBITDA from Continuing Operations Reconciliation 3Q18 4Q18 1Q19 2Q19 Terminalling & Storage LTM Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Smackover Refinery 5.1 4.9 5.0 5.3…
MMLP Continuing Operations Adjusted EBITDA Reconciliation 2015 2016 2017 2018 Net income (loss) 38.4 31.0 19.9 55.7 Interest expense add back 43.3 46.1 47.8 52.3 Depreciation and amortization 92.3 93.9 87.5 80.3 Income tax expense…

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