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 128mm…
3 Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown 3Q19 LTM 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 42% of revenue Evergreen and spot contracts…
4 Continued Capital Discipline to Strengthen Balance Sheet Strategic Improvements to Capital Structure Total Debt / PF Covenant Compliance EBITDA (1) Sold Underperforming Assets Increase in leverage from irregular events Acquisition…
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 2.9mm barrels 7,700 bpd capacity naphthenic lube refinery located in Smackover, Arkansas Processes crude oil into finished products including…
Terminalling & Storage Segment Strategy Adj. EBITDA from Continuing Operations (mm) (1) Well positioned for energy export projects at Beaumont terminal IMO 2020 expected to create additional value for storage and terminalling…
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 Fee-based monthly Domestic reservation for handling and Chemical transportation of molten Production sulfur…
Sulfur Segment Strategy Adj. EBITDA from Continuing Operations (mm) (1) Largest factor influencing sulfur-based fertilizers in the U.S. is corn acres planted Significant challenges during the 2018 and 2019 planting season due to…
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) Benefit from increased refinery utilization and expansion on the Gulf Coast Refinery demand driven by new chemical plants as well as refinery…
Natural Gas Liquids 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 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 September 30, 2019 9/30/2019 Amended RCF reduced Current commitments to 400mm and extended maturity to August 2023 Cash 2 Cash & Equivalents 2…
Performance Metrics Revenue (mm) PF Adjusted EBITDA (mm) (2) (1) PF Distributable Cash Flow (mm) Capital Expenditures (mm) (3) 135mm acquisition of Martin Transport in January 2019 at an (3) attractive 5.7x…
Credit Profile Total Debt (mm) (1) Total Debt / PF Covenant Compliance EBITDA (2) PF Covenant Compliance EBITDA / Adj. Interest Expense (2) Note: (1) Total debt is net of Inventory Sublimit, subject to a cap on Inventory…
Appendix
MMLP Covenant Compliance Consolidated EBITDA Reconciliation millions 2015 2016 2017 2018 3Q19 LTM Consolidated Net Income (Loss) 50.2 36.7 22.3 (7.3) (21.8) Consolidated Interest Expense Add Back 40.5 44.0 45.9 49.5 49.1 Depreciation…
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