Martin Midstream Partners L.P. · NASDAQ:MMLP
Martin Midstream Partners L.P — Investor Presentation (May 2024)
29 slides from Martin Midstream Partners L.P's investor presentation, May 2024
Slide 1: Investor Presentation May 2024
INVESTOR PRESENTATION May 2024 MARTIN MIDSTREAM PARTNERS
Slide 2: Disclaimers and Company Information
Disclaimers and Company Information NASDAQ Ticker MMLP Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Unit Price (1) $3.02 1995. These
Slide 3: Partnership Overview
PARTNERSHIP OVERVIEW A MARTIN MIDSTREAM PARTNER
Slide 4: Martin Midstream (Nasdaq: MMLP) at a Glance
Martin Midstream (Nasdaq: MMLP) at a Glance Diversified Specialty Services Midstream Business Strategically Located Along the Gulf Coast with Operations in Four Key Business Segments Key Stats • MMLP provides specialty services to major and independent oil Terminalling & Storage and gas companies in
Slide 5: Investment Highlights
Investment Highlights Strategically Located Asset Base • Refinery service assets located throughout the U.S Gulf Coast refinery and chemical complex • Long-standing customer relationships with PADD 3 refinery operators and service providers Execution of Financial Strategy • Focus on core business se
Slide 6: Strategically Located Throughout the U.S. Gulf Coast Refinery & Chemical Complex
Strategically Located Throughout the U.S. Gulf Coast Refinery & Chemical Complex PADD 3 > 50% of U.S. Refining Capacity MMLP PADD 3 Refinery Coverage Last 6 Months Average Operating Capacity MMLP Smackover Refinery HQ: Kilgore, TX MMLP PADD 3 Refinery Customer Locations Other PADD 3 Refinery Locatio
Slide 7: Diversified Business with Long-Standing Customer Relationships
Diversified Business with Long-Standing Customer Relationships Terminalling & Transportation Sulfur Specialty Products Storage • Provides storage, • Tank truck transportation • Manufactures and • Blends and packages refining, and handling services for the markets sulfur-based agricultural, automotiv
Slide 8: Financial Strategy: Repositioned Asset Base to Focus on Core Business Segments
Financial Strategy: Repositioned Asset Base to Focus on Core Business Segments • MMLP has successfully completed several non-core asset sales to simplify its business model and focus on core business segments and long-term customers along the U.S. Gulf Coast • Exited Natural Gas Storage business ($2
Slide 9: Cash Flow Stability from Strong Fee-Based Contracts with Limited Commodity Exposure
Cash Flow Stability from Strong Fee-Based Contracts with Limited Commodity Exposure Segment Breakdown 2024E Adjusted EBITDA(1) Service & Fixed Margin Based EBITDA Protection from Fee EBITDA Commodity Volume-Risk Price-Risk Price Volatility Smackover Refinery Specialty Terminals Terminalling & Storag
Slide 10: JV to Produce Electronics Level Sulfuric Acid for Chip Manufacturing
JV to Produce Electronics Level Sulfuric Acid for Chip Manufacturing Project ELSA Overview JV Ownership Overview Samsung DSM Semichem LLC (“DSM”) is a JV between Dongjin USA, Inc. (“DJ”), Samsung Martin Dongjin C&T Opportunity C&T America, Inc. (“SCT”) and MMLP for the construction of an electroni
Slide 11: Experienced and Incentivized Management Team & Strong Parent Support
Experienced and Incentivized Management Team & Strong Parent Support Martin Resource Management Corporation (“MRMC”) Martin Key has significantly assisted in MMLP’s growth and is Resource Operating committed to the Partnership Management 100% Subsidiaries Corporation ─ MRMC has provided over $552
Slide 12: Valuation Upside
Valuation Upside Enterprise Value 2024E ($mm) MMLP EV 2024E vs. Peers(2) Units 39.0 Unit Price $3.02 Market Capitalization $117.8 2024E Pro Forma Debt $440.6 2024E Pro Forma Enterprise Value $558.4 Pro Forma Enterprise Value / 2024E Adjusted EBITDA 4.8x Total Debt ($mm) Total Debt/PF Covenant Compli
Slide 13: Operating Segment Overview
OPERATING SEGMENT OVERVIEW A MARTIN MIDSTREAM PARTNER
Slide 14: Terminalling & Storage – Operating Overview
Terminalling & Storage – Operating Overview • Operates 20 terminal facilities with aggregate storage capacity of 2.6 mm barrels, 2.3mm of underground storage, and 1 naphthenic lube refinery Smackover Refinery Fee-based 7,700 bpd capacity naphthenic lube Refined Products Napthenic Crude Oil refinery
Slide 15: Terminalling & Storage – Strategy
Terminalling & Storage – Strategy Segment Strategy Adjusted Segment EBITDA ($mm)(1) • Well positioned for energy export projects at the Beaumont, TX terminals • Upside for underutilized tanks at both the Tampa, FL and Beaumont, TX terminals • Capitalize on any increase in Gulf of Mexico drilling Key
Slide 16: Transportation – Operating Overview
Transportation – Operating Overview • Tank truck and marine transportation for the petroleum, petrochemical and chemical industries Land Transportation Service-based tank truck transportation Products Handled catering to petroleum, petrochemical, • Molten Sulfur and chemical industries • General Che
Slide 17: Transportation – Strategy
Transportation – Strategy Segment Strategy Adjusted Segment EBITDA ($mm)(1) • Logistics demand driven by refinery utilization and expansion of chemical plants on the Gulf Coast • Expand services in the Land Transportation segment to drive fleet optimization • Marine Transportation demand escalating
Slide 18: Sulfur – Operating Overview
Sulfur – Operating Overview • Stores and prills molten sulfur, manufactures and markets sulfur-based fertilizers and related sulfur products Fertilizer Margin-based contracts, purchases molten Molten Sulfur Fertilizer Products sulfur from refineries as feedstock to convert • Ammonium to fertilizer S
Slide 19: Sulfur – Strategy
Sulfur – Strategy Segment Strategy Adjusted Segment EBITDA ($mm) (1) • Largest factor influencing sulfur-based fertilizers in the U.S. is corn acres planted • As of March 31, 2024, the USDA’s baseline projection for total acres of corn planted in the United States is 90.0 million for 2024, a decreas
Slide 20: Specialty Products – Operating Overview
Specialty Products – Operating Overview • Marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease Lubricants & Grease Lubricants/ Grease Margin-based purchases base oil from 3rd parties and • Branded/ Privat
Slide 21: Specialty Products – Strategy
Specialty Products – Strategy Segment Strategy Adjusted Segment EBITDA ($mm)(1) • Seasonal summer/winter propane price differential • Cost plus feedstock for petrochemical demand • Growth in Grease business with limited capital requirements • Exited seasonal butane business reducing working capital
Slide 22: Appendix
APPENDIX A MARTIN MIDSTREAM PARTNER
Slide 23: Performance Metrics
Performance Metrics Revenue ($mm) PF Adjusted EBITDA ($mm)(1) Distributable & Free Cash Flow ($mm)(2) Capital Expenditures ($mm) (1) PF Covenant Compliance EBITDA calculated in accordance with Revolving Credit Facility based on lender compliance certificates, pro forma for acquisitions, divestitures
Slide 24: Credit Profile
Credit Profile Total Debt ($mm) Total Debt/PF Covenant Compliance EBITDA(1) Debt Maturity Schedule ($mm)(2) PF Covenant Compliance EBITDA/Adj. Interest Expense(3) No Near-Term Maturities (1) Pro Forma Covenant Compliance ratios based on lender compliance certificates, pro forma for acquisitions, div
Slide 25: MMLP 2024E Adjusted EBITDA Guidance
MMLP 2024E Adjusted EBITDA Guidance (in millions) Transportation 1Q24A 2Q24E 3Q24E 4Q24E 2024E Specialty Products 1Q24A 2Q24E 3Q24E 4Q24E 2024E Land $9.0 $6.5 $6.4 $6.2 $28.0 Lubricants $1.5 $2.9 $3.6 $1.6 $9.6 Margin Marine $4.2 $3.8 $4.4 $4.0 $16.4 Grease $2.5 $2.2 $2.4 $1.9 $9.0 Margin Total Tran
Slide 26: Capitalization
Capitalization 3/31/2024 12/31/2023 Cash $0.1 $0.1 Cash & Equivalents $0.1 $0.1 Revolving Credit Facility(1) $50.0 $42.5 Secured Debt $50.0 $42.5 11.50% Senior Secured Notes Due February 2028 $400.0 $400.0 Total Debt $450.0 $442.5 Total Book Equity $(61.5) $(64.6) Total Book Capitalization $(61.5) $
Slide 27: Consolidated EBITDA Reconciliation
MMLP Adjusted & Covenant Compliance Consolidated EBITDA Reconciliation 2021 2022 2023 Net loss $(0.2) $(10.3) $(4.5) Interest expense $54.1 $53.7 $60.3 Depreciation and amortization $56.8 $56.2 $49.9 Income tax expense $3.4 $7.9 $5.9 EBITDA $114.1 $107.5 $111.6 (Gain) loss on sale of property, plant
Slide 28: MMLP Adjusted Segment EBITDA Reconciliation
MMLP Adjusted Segment EBITDA Reconciliation 2021A 2022A 2023A 2024E Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Adjusted EBITDA Transportation Land $23.9 $45.5 $35.6 $28.0 Marine $0.2 $9.4 $11.2 $16.4 Total Transportation $24.1 $54.9 $46.8 $44.4 Service/Fixed Fee Terminalling & Storage Smackover
Slide 29: Martin Midstream Partners Contact Information
Martin Midstream Partners 4200 B Stone Road Kilgore, Texas 75662 903.983.6200 www.MMLP.com
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