Martin Midstream Partners L.p. · NASDAQ:MMLP
Martin Midstream Partners L.p — Investor Day (March 2017)
43 slides from Martin Midstream Partners L.p's investor day presentation, Mar 23, 2017
Slide 1: Analyst & Investor Day March 23 2017
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E A N A L Y S T & I N V E S T O R D A Y M A R C H 2 3 2017
Slide 2: Agenda
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 3 MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 A G E N D A Welcome & MMLP Overview Operational Overview Financial Foundation Question & Answer Closing Remarks Bob Bondurant, Executive Vice President & Chief Financial Officer
Slide 3: Use of Non-GAAP Financial Measures
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 4 MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 U S E O F N O N - G A A P F I N A N C I A L M E A S U R E S This presentation includes certain non-GAAP financial measures such as EBITDA and Adjusted EBITDA. These non-GAAP fin
Slide 4: Forward Looking Statements
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 5 MARTIN MIDSTREAM PARTNERS L.P. ANALYST & INVESTOR DAY 2017 F O R WA R D L O O K I N G S TAT E M E N T S Statements included that are not historical facts (including any statements concerning plans and objectives of management for future
Slide 5: Welcome & MMLP Overview
—— WELCOME & MMLP OVERVIEW
Slide 6: MMLP Overview
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 7 • NASDAQ Listed: MMLP • Formed October 31, 2002 • MMLP is a publicly traded, diversified master limited partnership with operations including: • Terminalling & Storage • Natural Gas Services • Sulfur Services • Marine Transportation • M
Slide 7: Fee-based contracts and diversified service provider
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 8 • Majority (nearly 70%) of cash flows generated from fee-based contracts which include take or pay, reservation and minimum volume commitments • Diversified asset base with four complementary business units that create an integrated dis
Slide 8: Uniquely Diversified Operating Mix
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 9 ($191.4 million before $14.8 million unallocated SG&A and other non-operating income) Natural Gas Services $78.7 Sulfur Services $35.1 Marine Transportation $8.1 Terminalling & Storage $69.5 $176.6 million Adjusted EBITDA MARTIN MIDSTRE
Slide 9: MMLP Asset Locations – All Segments
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 10 MARTIN MIDSTREAM PARTNERS L.P. OVERVIEW M M L P A S S E T L O C AT I O N S – A L L S E G M E N T S
Slide 10: Strong Fee-Based Contract Mix
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 11 *Adjusted for divestiture of Corpus Christi terminal assets fee/margin split would be 68%/32% MARTIN MIDSTREAM PARTNERS L.P. S T R O N G F E E B A S E D C O N T R A C T M I X Natural Gas Services • Fee-based, multi-year natural gas sto
Slide 11: High Quality Long-Term Customer Base
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 12 MARTIN MIDSTREAM PARTNERS L.P. H I G H Q U A L I T Y L O N G - T E R M C U S TO M E R B A S E • Long-term customer relationships are a key driver of our success • Full value chain solutions for handling and logistics • Customers includ
Slide 12: Martin Resource Management Corporation Overview
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 13 MARTIN RESOURCE MANAGEMENT CORPORATION OVERVIEW ( M R M C ) O V E R V I E W • Based in Kilgore, TX, since 1951, MRMC is a leading independent provider of storage, manufacturing, marketing, and distribution services to energy, petrochem
Slide 13: Strong General Partner Support
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 14 MARTIN MIDSTREAM PARTNERS L.P. S T R O N G G E N E R A L PA R T N E R S U P P O R T • MRMC’s operations support MMLP’s cash flow • MRMC’s distinct assets and business units are complementary to MMLP • MRMC’s contractual relationships w
Slide 14: 2017E Guidance by Segment
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 15 Natural Gas Services $76.9 Sulfur Services $29.8 Marine Transportation $7.2 Terminalling & Storage $59.1 MARTIN MIDSTREAM PARTNERS L.P. 2 0 1 7 E G U I D A N C E B Y S E G M E N T 2017 ($173.0 million before $15.6 million unallocated S
Slide 15: Operational Overview
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Slide 16: Natural Gas Services Overview
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 17 MARTIN MIDSTREAM PARTNERS L.P. N AT U R A L G A S S E R V I C E S O V E R V I E W • Cardinal Gas Storage operates approximately 50 billion cubic feet of natural gas storage capacity across four facilities throughout northern Louisiana
Slide 17: Cardinal Contract Summary
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 18 • Firm contracted model for natural gas storage with interruptible service upside • Long term contracts – Cardinal’s weighted average contract life of approximately 4 years protects against significant cash flow deterioration in the ne
Slide 18: Cardinal Gas Storage Asset Locations
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 19 Arcadia Gas Storage • Salt dome facility (Arcadia, LA) – 16.3 bcf Perryville Gas Storage • Salt dome facility (Delhi, LA) – 9.0 bcf Cadeville Gas Storage • Depleted reservoir facility (Monroe, LA) – 17.0 bcf Monroe Gas Storage • Deplet
Slide 19: Butane Optimization
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 20 • Refineries adjust the vapor pressure of gasoline to meet seasonal EPA standards and are allowed to blend butane into gasoline pool during winter months • MMLP owns and leases a network of underground storage facilities in Louisiana.
Slide 20: West Texas LPG Pipeline (WTLPG)
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 21 • The WTLPG system is approximately 2,300 miles of Y-grade pipeline from Eastern New Mexico to Mt. Belvieu, TX • MMLP owns 20% interests in WTLPG. (OKS is owner/operator of remaining 80%) • Nameplate capacity of approximately 240 MBbls
Slide 21: NGLs & Propane
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 22 • Assets include 200-mile East Texas Pipeline transporting Y- grade from Kilgore, TX to Beaumont, TX for fractionation; East Texas market volumes gathered by truck for pipeline injection • Spindeltop terminal supplies natural gasoline
Slide 22: Terminalling & Storage Overview
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 23 MARTIN MIDSTREAM PARTNERS L.P. T E R M I N A L L I N G & S TO R A G E O V E R V I E W • MMLP operates 40 terminal facilities with an aggregate storage capacity of 3.7 million barrels • These facilities provide storage, refining, blendi
Slide 23: Specialty Terminals
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 24 Port of Tampa Terminal, Tampa, FL MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S P E C I A LT Y T E R M I N A L S Specialty Terminals Overview • Network of 14 terminals which facilitate the movement of petroleum products and
Slide 24: Specialty Terminals: Hard to Handle Products
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 25 MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S P E C I A LT Y T E R M I N A L S Expertise In “Hard to Handle” Product and By-Product Logistics • Beaumont Neches • Multi-service terminal • Sulfur offtake and gathering point f
Slide 25: Marine Shore-Based Terminals
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 26 MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE M A R I N E S H O R E - B A S E D T E R M I N A L S Gulf Coast Fuel and Lubricant Distribution Network • 26 terminals along the Gulf Coast from Blakeley Island, AL to Port O’Conno
Slide 26: Smackover Refinery
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 27 MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE S M A C KO V E R R E F I N E R Y Specialized Naphthenic Refinery • 7,700 bpd capacity naphthenic lube refinery located in Smackover, AR • Specialized facility processes crude oil
Slide 27: Martin Lubricants
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 28 MARTIN MIDSTREAM PARTNERS L.P. – TERMINALLING & STORAGE M A R T I N L U B R I C A N T S Lubricant Blending & Packaging • Specialty lubricant product blending and packaging assets located within MMLP’s Smackover Refinery in Smackover, A
Slide 28: Sulfur Services Overview
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 29 MARTIN MIDSTREAM PARTNERS L.P. S U L F U R S E R V I C E S O V E R V I E W • Molten sulfur, a refinery by-product, is aggregated, stored, prilled and transported through MMLP’s integrated value chain systems • MMLP manufactures and mar
Slide 29: Integrated Value Chain
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 30 • Provides transportation, processing and marketing services necessary to move product from producer to consumer • Intermodal transportation offers multiple fee opportunities for MMLP MARTIN MIDSTREAM PARTNERS L.P. – SULFUR SERVICES I
Slide 30: Fertilizer
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 31 • MMLP manufactures and markets sulfur-based fertilizers and related sulfur products for agricultural and industrial use from manufacturing plants in Texas, Illinois and Utah • Typical customers include large distributors that own or c
Slide 31: Molten Sulfur
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 32 Assets Capacity Products Offshore Tank Barge 10,450 Long Tons Molten Sulfur Offshore Tugboat 7,200 Horsepower N/A Inland Push Boat 1,200 Horsepower N/A MGM 101 2,450 Long Tons Molten Sulfur MGM 102 2,450 Long Tons Molten Sulfur Note: M
Slide 32: Prilled Sulfur
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 33 Terminal Location Production Capacity Products Stored Neches Beaumont, TX 5,500 metric tons/day Molten, prilled & granulated sulfur Stockton Stockton, CA 1,000 metric tons/day Molten & prilled sulfur MARTIN MIDSTREAM PARTNERS L.P. – SU
Slide 33: Marine Transportation Overview
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 34 MARTIN MIDSTREAM PARTNERS L.P. M A R I N E T R A N S P O R TAT I O N O V E R V I E W • MMLP utilizes a fleet of inland and offshore tows to provide marine transportation of petroleum products and by-products • MMLP’s marine transportat
Slide 34: Marine Transportation Assets
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 35 • 35 inland marine tank barges • 19 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 the MMLP Specialty Terminals •
Slide 35: Inland & Offshore Marine
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 36 MARTIN MIDSTREAM PARTNERS L.P. – MARINE TRANSPORTATION I N L A N D & O F F S H O R E Profitability Drivers • Supply of available marine equipment • Refinery utilization and runs • Demand for asphalt, heavy fuel oil and cutters Current
Slide 36: Recent Acquisition
R E C E N T A C Q U I S I T I O N
Slide 37: Hondo Asphalt Terminal Acquisition
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 38 • $36.0 million purchase price • $27.4 million cash at closing, with $8.6 million remaining to be spent over the next few months • Expect substantial completion by end of second quarter and contract to commence July 1, 2017 • $5.0 mill
Slide 38: Hondo Asphalt Terminal Drop-Down
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 39 MARTIN MIDSTREAM PARTNERS L.P. H O N D O A S P H A LT T E R M I N A L D R O P - D O W N
Slide 39: Financial Foundation
F I N A N C I A L F O U N D AT I O N
Slide 40: Capitalization
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 41 12/31/2015 12/31/2016 DEBT Revolving Credit Facility Due 2020 $498.0 $443.0 Senior Secured Debt $498.0 $443.0 Senior Notes Due February 2021 $373.8 $373.8 Total Debt $871.8 $816.8 Partners’ Capital $393.9 $312.0 Total Capitalization $1
Slide 41: Adjusted EBITDA Reconciliation 2016
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 42 Natural Gas Services Terminalling & Storage Sulfur Services Marine Transportation SG&A Interest Expense 2016 Actual Net income (loss) $43.1 $44.1 $26.8 $(19.8) $(16.4) $(46.1) $31.7 Interest expense add back -- -- -- -- -- $46.1 $46.1
Slide 42: Adjusted EBITDA Guidance Reconciliation
T E X T G O E S H E R E S U B T E X T I S P L A C E D H E R E 43 MARTIN MIDSTREAM PARTNERS L.P. 2 0 1 7 E A D J U S T E D E B I T D A G U I D A N C E R E C O N C I L I AT I O N Natural Gas Services Terminalling & Storage Sulfur Services Marine Transportation SG&A Interest Expense 2017E Net income (l
Slide 43: Martin Midstream Partners
2 0 1 7 | M A R T I N M I D S T R E A M P A R T N E R S S U B T E X T I S P L A C E D H E R E
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