Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (date of earliest event reported): July 17, 2024

MARTIN MIDSTREAM PARTNERS L.P.

(Exact name of Registrant as specified in its charter)

Delaware

000-50056

05-0527861

(State of incorporation

or organization)

(Commission file number)

(I.R.S. employer identification number)

4200 Stone Road

Kilgore, Texas 75662

(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code: (903) 983-6200

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units representing limited partnership interests	MMLP	The NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. o


Item 2.02						Results of Operations and Financial Condition.

On July 17, 2024, Martin Midstream Partners L.P. (the "Partnership") issued a press release reporting its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and will be published on the Partnership's website at www.MMLP.com. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the press release is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).


Item 9.01						Financial Statements and Exhibits.

(d) Exhibits

In accordance with General Instruction B.2 of Form 8-K, the information set forth in the attached Exhibit 99.1 and Exhibit 99.2 are deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.


Exhibit Number						Description
99.1						Press release dated July 17, 2024
99.2						Supplemental information - Martin Midstream Partners L.P. 2nd Quarter Earnings Summary
104						Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MARTIN MIDSTREAM PARTNERS L.P.

By: Martin Midstream GP LLC,

Its General Partner

Date: July 17, 2024

By: /s/ Sharon L. Taylor

Sharon L. Taylor

Executive Vice President and

Chief Financial Officer

EXHIBIT 99.1

MARTIN MIDSTREAM PARTNERS REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS AND DECLARES QUARTERLY CASH DISTRIBUTION

•Net income of $3.8 million and $7.1 million for the three and six months ended June 30, 2024, respectively

•Adjusted EBITDA of $31.7 million and $62.1 million for the three and six months ended June 30, 2024, respectively

•Total adjusted leverage of 3.88 times as of June 30, 2024

•Declares quarterly cash dividend of $0.005 per common unit

KILGORE, Texas, July 17, 2024 (BUSINESS WIRE) -- Martin Midstream Partners L.P. (Nasdaq: MMLP) (“MMLP” or the “Partnership”) today announced its financial results for the second quarter of 2024.

Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, “For the second quarter of 2024, the Partnership exceeded guidance by $0.5 million with adjusted EBITDA of $31.7 million compared to guidance of $31.2 million. Within our Transportation Services segment the land division continued to outperform projections assisted by higher than forecasted mileage along with lower maintenance expense. The marine division, however, was negatively impacted by a casualty loss reserve of $0.5 million from a bridge allision that occurred in May. The marine division also experienced lower fleet utilization this quarter as a result of both the allision and extended time of equipment in dry dock for regulatory inspection compared to forecasted duration.”

“The Sulfur Services segment results were above guidance as the division benefited from strong fertilizer margins and high sulfur production from the Gulf Coast refineries. Results in the Specialty Products segment were in line with guidance as strength in our grease division offset underperformance by the packaged lubricants business. Finally, the Terminalling and Storage segment results were below guidance as a direct result of a $1.5 million casualty loss reserve related to the previously announced crude oil spill from a crude pipeline that connects our Sandyland Terminal to the Smackover refinery.”

SECOND QUARTER 2024 OPERATING RESULTS BY BUSINESS SEGMENT


	Operating Income (Loss) ($M)				Adjusted EBITDA, After Giving Effect to the Exit of the Butane Optimization Business ($M)				Adjusted EBITDA ($M)
	Three Months Ended June 30,
	2024		2023		2024		2023		2024		2023
	(Amounts may not add or recalculate due to rounding)
Business Segment:
Terminalling and Storage	$	3.3	$	4.4	$	8.0	$	9.6	$	8.0	$	9.6
Transportation	8.0		9.0		11.2		12.1		11.2		12.1
Sulfur Services	7.5		5.3		10.6		8.0		10.6		8.0
Specialty Products	4.9		2.5		5.7		5.9		5.7		(0.4)
Unallocated Selling, General and Administrative Expense	(3.8)		(3.9)		(3.8)		(3.9)		(3.8)		(3.9)
	$	19.9	$	17.3	$	31.7	$	31.8	$	31.7	$	25.5

Terminalling and storage adjusted EBITDA decreased $1.6 million, primarily reflecting the $1.5 million casualty loss reserve related to the crude oil spill from a crude pipeline that connects our Sandyland Terminal to the Smackover refinery. This casualty loss reserve was coupled with higher employee-related expenses across our divisions, offset by increased throughput in our shore-based terminals and underground NGL storage divisions.

Transportation adjusted EBITDA decreased $0.9 million, reflecting higher expenses in our marine division related to a casualty loss reserve of $0.5 million stemming from a bridge allision that occurred in May. This was coupled with lower fleet utilization as a result of both the allision and an acceleration of equipment into dry dock for regulatory inspection. Our marine division was positively impacted during the quarter by higher day rates. The land division experienced increased operating expenses, offset by increased mileage and transportation rates.

Sulfur services adjusted EBITDA increased $2.6 million, primarily reflecting increased fertilizer margins and high sulfur production from the Gulf Coast refineries.

Specialty products adjusted EBITDA, after giving effect to the exit of the butane optimization business, decreased $0.2 million, reflecting decreased margins in our NGL marketing business, offset by higher margins in our grease division.

Unallocated selling, general, and administrative expense decreased $0.1 million, reflecting reduced overhead expenses allocated from Martin Resource Management.

CAPITALIZATION


	June 30, 2024		December 31, 2023
	($ in millions)
Debt Outstanding:
Revolving Credit Facility, Due February 2027 1	$	58.0	$	42.5
Finance lease obligations	0.1		—
11.50% Senior Secured Notes, Due February 2028	400.0		400.0
Total Debt Outstanding:	$	458.1	$	442.5

Summary Credit Metrics:
Revolving Credit Facility - Total Capacity	$	150.0	$	175.0
Revolving Credit Facility - Available Liquidity	$	82.9	$	109.0
Total Adjusted Leverage Ratio 2	3.88x		3.75x
Senior Leverage Ratio 2	0.49x		0.36x
Interest Coverage Ratio 2	2.24x		2.19x

1 The Partnership was in compliance with all debt covenants as of June 30, 2024 and December 31, 2023.

2 As calculated under the Partnership's revolving credit facility.

RESULTS OF OPERATIONS SUMMARY

(in millions, except per unit amounts)


Period	Net Income		Net Income Per Unit		Adjusted EBITDA		Adjusted EBITDA, After Giving Effect to the Exit of the Butane Optimization Business		Net Cash Provided by Operating Activities		Distributable Cash Flow		Revenues

Three Months Ended June 30, 2024	$	3.8	$	0.09	$	31.7	$	31.7	$	11.8	$	9.5	$	184.5
Three Months Ended June 30, 2023	$	1.1	$	0.03	$	25.5	$	31.8	$	49.5	$	9.7	$	195.6

EBITDA, adjusted EBITDA, distributable cash flow and adjusted free cash flow are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.

An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership’s adjusted EBITDA for the second quarter 2024 to the Partnership's adjusted EBITDA guidance for the second quarter 2024.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended June 30, 2024. The distribution is payable on August 14, 2024 to common unitholders of record as of the close of business on August 7, 2024. The ex-dividend date for the cash distribution is August 7, 2024.

Qualified Notice to Nominees

This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent (100%) of MMLP’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MMLP’s distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Martin Midstream Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.

Investors' Conference Call

Date: Thursday, July 18, 2024

Time: 8:00 a.m. CT (please dial in by 7:55 a.m.)

Dial In #: (888) 330-2384

Conference ID: 8536096

Replay Dial In # (800) 770-2030 – Conference ID: 8536096

A webcast of the conference call along with the Second Quarter 2024 Earnings Summary will also be available by visiting the Events and Presentations section under Investor Relations on our website at www.MMLP.com.

About Martin Midstream Partners

Martin Midstream Partners LP, headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP’s primary business lines include: (1) terminalling, processing, and storage services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn, Facebook, and X (formerly known as Twitter).

Forward-Looking Statements

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 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment and (ii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the “SEC”). The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.

Use of Non-GAAP Financial Information

To assist management in assessing our business, we use the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), adjusted EBITDA (as defined below), distributable cash flow available to common unitholders (“distributable cash flow”), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("adjusted free cash flow"). Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with U.S. GAAP to analyze our performance.

Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.

EBITDA and adjusted EBITDA. We define adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments. Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others, to assess:

•the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis;

•the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; and

•our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.

The GAAP measures most directly comparable to adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), net cash provided by (used in) operating activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate adjusted EBITDA in the same manner.

Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we have capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider net income (loss) and net cash provided by (used in) operating activities as determined under GAAP, as well as adjusted EBITDA, to evaluate our overall performance.

Distributable cash flow and adjusted free cash flow. We define distributable cash flow as net cash provided by (used in) operating activities less cash received (plus cash paid) for closed commodity derivative positions included in Accumulated Other Comprehensive Income (Loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable cash flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions we expect to pay unitholders. Distributable cash flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.

We define adjusted free cash flow as distributable cash flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted free cash flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that adjusted free cash flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.

The GAAP measure most directly comparable to distributable cash flow and adjusted free cash flow is net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow should not be considered alternatives to, or more meaningful than, net income (loss), operating income (loss), Net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP. Distributable cash flow and adjusted free cash flow have important limitations because they exclude some items that affect net income (loss), operating income (loss), and net cash provided by (used in) operating activities. Distributable cash flow and adjusted free cash flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, we believe that it is important to consider net cash provided by (used in) operating activities determined under GAAP, as well as distributable cash flow and adjusted free cash flow, to evaluate our overall liquidity.

Contact:

Sharon Taylor - Executive Vice President & Chief Financial Officer

(877) 256-6644

investor.relations@mmlp.com

MMLP-F

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED BALANCE SHEETS

(Dollars in thousands)


	June 30, 2024		December 31, 2023
	(Unaudited)		(Audited)
Assets
Cash	$	55	$	54
Accounts and other receivables, less allowance for doubtful accounts of $506 and $530, respectively	50,910		53,293

Inventories	41,597		43,822
Due from affiliates	22,151		7,924

Other current assets	10,284		9,220

Total current assets	124,997		114,313

Property, plant and equipment, at cost	939,570		918,786
Accumulated depreciation	(631,219)		(612,993)
Property, plant and equipment, net	308,351		305,793

Goodwill	16,671		16,671
Right-of-use assets	63,768		60,359
Investment in DSM Semichem LLC	7,938		—
Deferred income taxes, net	10,174		10,200
Other assets, net	3,179		2,039
Total assets	$	535,078	$	509,375

Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations	$	14	$	—
Trade and other accounts payable	51,874		51,653
Product exchange payables	—		426
Due to affiliates	3,269		6,334
Income taxes payable	1,374		652

Other accrued liabilities	42,178		41,499
Total current liabilities	98,709		100,564

Long-term debt, net	439,397		421,173
Finance lease obligations	62		—
Operating lease liabilities	47,187		45,684
Other long-term obligations	7,589		6,578
Total liabilities	592,944		573,999

Commitments and contingencies
Partners’ capital (deficit)	(57,866)		(64,624)

Total liabilities and partners' capital (deficit)	$	535,078	$	509,375

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per unit amounts)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenues:
Terminalling and storage *	$	22,375	$	21,684	$	44,892	$	42,542
Transportation *	57,676		54,750		115,983		110,473
Sulfur services	3,477		3,357		6,954		6,715
Product sales: *
Specialty products	67,288		78,872		133,613		211,141
Sulfur services	33,715		36,973		63,919		69,294

	101,003		115,845		197,532		280,435
Total revenues	184,531		195,636		365,361		440,165

Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Specialty products *	57,553		71,570		114,783		189,565
Sulfur services *	19,234		25,654		39,633		47,471
Terminalling and storage *	24		25		42		31
	76,811		97,249		154,458		237,067
Expenses:
Operating expenses *	65,358		60,737		129,292		123,482
Selling, general and administrative *	10,701		8,447		19,614		19,619


Depreciation and amortization	12,687		12,547		25,336		25,448
Total costs and expenses	165,557		178,980		328,700		405,616

Other operating income (loss), net	953		673		1,161		285

Operating income	19,927		17,329		37,822		34,834

Other income (expense):
Interest expense, net	(14,377)		(15,263)		(28,219)		(30,920)

Loss on extinguishment of debt	—		—		—		(5,121)

Other, net	2		11		18		33
Total other expense	(14,375)		(15,252)		(28,201)		(36,008)

Net income (loss) before taxes	5,552		2,077		9,621		(1,174)
Income tax expense	(1,772)		(996)		(2,568)		(2,831)


Net income (loss)	3,780		1,081		7,053		(4,005)
Less general partner's interest in net income (loss)	(76)		(22)		(141)		80

Less income (loss) allocable to unvested restricted units	(16)		(4)		(28)		12
Limited partners' interest in net income (loss)	$	3,688	$	1,055	$	6,884	$	(3,913)

Net income (loss) per unit attributable to limited partners - basic and diluted	$	0.09	$	0.03	$	0.18	$	(0.10)

Weighted average limited partner units - basic	38,832,222		38,772,266		38,833,039		38,771,037
Weighted average limited partner units - diluted	38,891,375		38,777,600		38,872,192		38,771,037

*Related Party Transactions Shown Below

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per unit amounts)

*Related Party Transactions Included Above


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenues:*
Terminalling and storage	$	18,078	$	18,077	$	36,627	$	35,579
Transportation	8,318		7,277		16,919		12,788

Product Sales	123		7,497		252		8,422
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Specialty products	8,368		7,918		14,941		17,428
Sulfur services	2,919		2,644		5,912		5,352
Terminalling and storage	24		25		42		31
Expenses:
Operating expenses	26,501		25,058		52,924		48,885
Selling, general and administrative	8,638		6,556		15,501		15,072

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)

(Unaudited)

(Dollars in thousands)


	Partners’ Capital (Deficit)
	Common Limited			General Partner Amount
	Units	Amount				Total
Balances - March 31, 2024	39,001,086	$	(63,115)	$	1,619		$	(61,496)
Net income	—	3,704		76			3,780




Cash distributions	—	(195)		(4)			(199)
Unit-based compensation	—	49		—			49




Balances - June 30, 2024	39,001,086	(59,557)		1,691			(57,866)

Balances - December 31, 2023	38,914,806	$	(66,182)	$	1,558		$	(64,624)
Net income	—	6,912		141			7,053

Issuance of restricted units	86,280	—		—			—


Cash distributions	—	(390)		(8)			(398)
Unit-based compensation	—	103		—			103




Balances - June 30, 2024	39,001,086	$	(59,557)	$	1,691		$	(57,866)


	Partners’ Capital (Deficit)
	Common Limited			General Partner Amount
	Units	Amount				Total
Balances - March 31, 2023	38,914,806	$	(66,236)	$	1,559		$	(64,677)
Net income	—	1,059		22			1,081




Cash distributions	—	(195)		(4)			(199)
Unit-based compensation	—	38		—			38




Balances - June 30, 2023	38,914,806	(65,334)		1,577			(63,757)

Balances - December 31, 2022	38,850,750	$	(61,110)	$	1,665		$	(59,445)
Net loss	—	(3,925)		(80)			(4,005)

Issuance of restricted units	64,056	—		—			—


Cash distributions	—	(389)		(8)			(397)
Unit-based compensation	—	90		—			90




Balances - June 30, 2023	38,914,806	$	(65,334)	$	1,577		$	(63,757)

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)


	Six Months Ended
	June 30,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	7,053	$	(4,005)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	25,336		25,448
Amortization of deferred debt issuance costs	1,539		2,435
Amortization of debt discount	1,200		1,000

Deferred income tax expense	26		1,867
Gain on disposition or sale of property, plant and equipment, net	(1,161)		(285)



Loss on extinguishment of debt	—		5,121



Non cash unit-based compensation	103		90
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	2,383		22,619

Inventories	2,031		58,933
Due from affiliates	(14,227)		5,654
Other current assets	174		5,296
Trade and other accounts payable	523		(19,459)
Product exchange payables	(426)		278
Due to affiliates	(3,065)		(6,641)
Income taxes payable	722		(215)
Other accrued liabilities	(1,196)		1,907
Change in other non-current assets and liabilities	922		(1,269)


Net cash provided by operating activities	21,937		98,774

Cash flows from investing activities:
Payments for property, plant and equipment	(24,194)		(17,024)

Payments for plant turnaround costs	(6,705)		(661)

Investment in DSM Semichem LLC	(6,938)		—
Proceeds from sale of property, plant and equipment	738		4,275


Net cash used in investing activities	(37,099)		(13,410)

Cash flows from financing activities:
Payments of long-term debt	(113,000)		(519,197)
Payments under finance lease obligations	(1)		(9)
Proceeds from long-term debt	128,577		448,489




Payment of debt issuance costs	(15)		(14,238)

Cash distributions paid	(398)		(397)
Net cash provided by (used in) financing activities	15,163		(85,352)

Net increase in cash	1		12
Cash at beginning of period	54		45
Cash at end of period	$	55	$	57

Non-cash additions to property, plant and equipment	$	2,641	$	1,679
Non-cash contribution of land to DSM Semichem LLC	$	1,000	$	—

MARTIN MIDSTREAM PARTNERS L.P.

SEGMENT OPERATING INCOME

(Unaudited)

(Dollars and volumes in thousands, except BBL per day)

Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023


	Three Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands, except BBL per day)

Revenues	$	24,402	$	23,906	$	496	2	%



Cost of products sold	24		25		(1)		(4)	%
Operating expenses	15,522		13,932		1,590		11	%
Selling, general and administrative expenses	820		333		487		146	%
Depreciation and amortization	5,729		5,195		534		10	%
	2,307		4,421		(2,114)		(48)	%
Other operating income, net	995		25		970		3,880	%

Operating income	$	3,302	$	4,446	$	(1,144)	(26)	%

Shore-based throughput volumes (gallons)	42,491		42,434		57		—	%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)	6,500		6,500		—		—	%

Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023


	Six Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands, except BBL per day)

Revenues	$	48,687	$	47,825	$	862	2	%
Cost of products sold	42		31		11		35	%
Operating expenses	30,557		28,240		2,317		8	%
Selling, general and administrative expenses	1,102		882		220		25	%
Depreciation and amortization	11,124		10,794		330		3	%
	5,862		7,878		(2,016)		(26)	%
Other operating income (loss), net	1,097		(324)		1,421		439	%

Operating income	$	6,959	$	7,554	$	(595)	(8)	%

Shore-based throughput volumes (gallons)	88,260		85,783		2,477		3	%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)	6,500		6,500		—		—	%

Transportation Segment

Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023


	Three Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands)
Revenues	$	61,467	$	58,395	$	3,072	5	%
Operating expenses	47,783		44,285		3,498		8	%
Selling, general and administrative expenses	2,527		1,981		546		28	%


Depreciation and amortization	3,381		3,760		(379)		(10)	%
	7,776		8,369		(593)		(7)	%
Other operating income, net	260		647		(387)		(60)	%
Operating income	$	8,036	$	9,016	$	(980)	(11)	%

Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023


	Six Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands)
Revenues	$	123,509	$	120,334	$	3,175	3	%
Operating expenses	94,424		90,475		3,949		4	%
Selling, general and administrative expenses	4,727		4,530		197		4	%


Depreciation and amortization	6,857		7,522		(665)		(9)	%
	$	17,501	$	17,807	$	(306)	(2)	%
Other operating income, net	366		651		(285)		(44)	%
Operating income	$	17,867	$	18,458	$	(591)	(3)	%

Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023


	Three Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands)
Revenues:
Services	$	3,477	$	3,357	$	120	4	%
Products	33,716		36,973		(3,257)		(9)	%
Total revenues	37,193		40,330		(3,137)		(8)	%

Cost of products sold	22,183		28,141		(5,958)		(21)	%
Operating expenses	2,744		3,186		(442)		(14)	%
Selling, general and administrative expenses	1,717		962		755		78	%
Depreciation and amortization	2,778		2,756		22		1	%
	7,771		5,285		2,486		47	%
Other operating income (loss), net	(308)		1		(309)		(30,900)	%
Operating income	$	7,463	$	5,286	$	2,177	41	%

Sulfur (long tons)	91		123		(32)		(26)	%
Fertilizer (long tons)	64		73		(9)		(12)	%
Total sulfur services volumes (long tons)	155		196		(41)		(21)	%

Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023


	Six Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands)
Revenues:
Services	$	6,954	$	6,715	$	239	4	%
Products	63,920		69,294		(5,374)		(8)	%
Total revenues	70,874		76,009		(5,135)		(7)	%

Cost of products sold	44,954		52,090		(7,136)		(14)	%
Operating expenses	5,684		6,085		(401)		(7)	%
Selling, general and administrative expenses	3,020		2,579		441		17	%
Depreciation and amortization	5,760		5,433		327		6	%
	11,456		9,822		1,634		17	%
Other operating income (loss), net	(308)		17		(325)		(1,912)	%

Operating income	$	11,148	$	9,839	$	1,309	13	%

Sulfur (long tons)	182		197		(15)		(8)	%
Fertilizer (long tons)	136		134		2		1	%
Total sulfur services volumes (long tons)	318		331		(13)		(4)	%

Specialty Products Segment

Comparative Results of Operations for the Three Months Ended June 30, 2024 and 2023


	Three Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands)
Products revenues	$	67,317	$	78,898	$	(11,581)	(15)	%
Cost of products sold	59,711		74,270		(14,559)		(20)	%
Operating expenses	26		18		8		44	%
Selling, general and administrative expenses	1,842		1,299		543		42	%
Depreciation and amortization	799		836		(37)		(4)	%
	4,939		2,475		2,464		100	%
Other operating income, net	6		—		6
Operating income	$	4,945	$	2,475	$	2,470	100	%

NGL sales volumes (Bbls)	540		827		(287)		(35)	%
Other specialty products volumes (Bbls)	93		90		3		3	%
Total specialty products volumes (Bbls)	633		917		(284)		(31)	%

Comparative Results of Operations for the Six Months Ended June 30, 2024 and 2023


	Six Months Ended June 30,				Variance		Percent Change
	2024		2023
	(In thousands)
Products revenues	$	133,663	$	211,175	$	(77,512)	(37)	%

Cost of products sold	119,355		198,721		(79,366)		(40)	%
Operating expenses	51		32		19		59	%
Selling, general and administrative expenses	3,165		3,589		(424)		(12)	%
Depreciation and amortization	1,595		1,699		(104)		(6)	%
	9,497		7,134		2,363		33	%
Other operating income (loss), net	6		(59)		65		110	%
Operating income	$	9,503	$	7,075	$	2,428	34	%

NGL sales volumes (Bbls)	1,162		2,518		(1,356)		(54)	%
Other specialty products volumes (Bbls)	172		174		(2)		(1)	%
Total specialty products volumes (Bbls)	1,334		2,692		(1,358)		(50)	%

Unallocated Selling, General and Administrative Expenses

Comparative Results of Operations for the Three and Six Months Ended June 30, 2024 and 2023


	Three Months Ended June 30,				Variance		Percent Change		Six Months Ended June 30,				Variance		Percent Change
	2024		2023						2024		2023
	(In thousands)								(In thousands)
Indirect selling, general and administrative expenses	$	3,819	$	3,894	$	(75)	(2)	%	$	7,655	$	8,092	$	(437)	(5)	%

Non-GAAP Financial Measures

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2024 and 2023, which represents EBITDA, adjusted EBITDA, adjusted EBITDA after giving effect to the exit of the butane optimization business, distributable cash flow, and adjusted free cash flow:

Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business


	Three Months Ended June 30,				Six Months Ended June 30,

	2024		2023		2024		2023
	(in thousands)				(in thousands)
Net income (loss)	$	3,780	$	1,081	$	7,053	$	(4,005)
Adjustments:
Interest expense	14,377		15,263		28,219		30,920
Income tax expense	1,772		996		2,568		2,831
Depreciation and amortization	12,687		12,547		25,336		25,448
EBITDA	32,616		29,887		63,176		55,194
Adjustments:
Gain on disposition or sale of property, plant and equipment	(953)		(673)		(1,161)		(285)
Loss on extinguishment of debt	—		—		—		5,121
Lower of cost or net realizable value and other non-cash adjustments	—		(3,717)		—		(12,850)
Unit-based compensation	49		38		103		90
Adjusted EBITDA	$	31,712	$	25,535	$	62,118	$	47,270
Adjustments:
Less: net loss associated with butane optimization business	—		2,564		—		2,255
Plus: lower of cost or net realizable value and other non-cash adjustments	—		$	3,717	—		12,850
Adjusted EBITDA after giving effect to the exit of the butane optimization business	$	31,712	$	31,816	$	62,118	$	62,375

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business, Distributable Cash Flow, and Adjusted Free Cash Flow


	Three Months Ended June 30,				Six Months Ended June 30,

	2024		2023		2024		2023
	(in thousands)				(in thousands)
Net cash provided by operating activities	$	11,828	$	49,510	$	21,937	$	98,774
Interest expense 1	13,004		13,903		25,480		27,485
Current income tax expense	1,420		306		2,542		964
Lower of cost or net realizable value and other non-cash adjustments	—		(3,717)		—		(12,850)
Changes in operating assets and liabilities which (provided) used cash:
Accounts and other receivables, inventories, and other current assets	9,919		(43,135)		9,639		(91,517)
Trade, accounts and other payables, and other current liabilities	(3,786)		7,171		3,442		23,145
Other	(673)		1,497		(922)		1,269
Adjusted EBITDA	31,712		25,535		62,118		47,270
Adjustments:
Less: net loss associated with butane optimization business	—		2,564		—		2,255
Plus: lower of cost or net realizable value and other non-cash adjustments	—		3,717		—		12,850
Adjusted EBITDA after giving effect to the exit of the butane optimization business	31,712		31,816		62,118		62,375
Adjustments:
Interest expense	(14,377)		(15,263)		(28,219)		(30,920)
Income tax expense	(1,772)		(996)		(2,568)		(2,831)
Deferred income taxes	352		690		26		1,867
Amortization of debt discount	600		600		1,200		1,000
Amortization of deferred debt issuance costs	773		760		1,539		2,435
Payments for plant turnaround costs	(745)		(432)		(6,705)		(661)
Maintenance capital expenditures	(7,009)		(7,438)		(12,211)		(14,072)
Distributable cash flow	9,534		9,737		15,180		19,193
Principal payments under finance lease obligations	(1)		(3)		(1)		(9)
Investment in DSM Semichem LLC	(6,938)		—		(6,938)		—
Expansion capital expenditures	(5,450)		(1,925)		(11,681)		(2,682)
Adjusted free cash flow	$	(2,855)	$	7,809	$	(3,440)	$	16,502

1 Net of amortization of debt issuance costs and discount, which are included in interest expense but not included in net cash provided by (used in) operating activities.

July 17, 2024 Second Quarter 2024 Earnings Summary MARTIN MIDSTREAM PARTNERS Exhibit 99.2

MMLP 2Q 2024 Adjusted EBITDA Reconciliation & Comparison to Guidance (in millions) Page 2 Terminalling & Storage 2024E Guidance 2Q24 Guidance 2Q24A Smackover Refinery $16.1 $4.4 $3.1 Specialty Terminals $12.2 $3.1 $2.9 Shore-Based Terminals $5.5 $1.4 $1.5 Underground Storage $1.6 $0.5 $0.6 Total Terminalling & Storage $35.4 $9.4 $8.0 Specialty Products 2024E Guidance 2Q24 Guidance 2Q24A Lubricants $9.2 $2.9 $2.5 Grease $9.5 $2.2 $2.7 Propane $2.5 $0.2 $0.3 Natural Gasoline $1.1 $0.2 $0.3 Total Specialty Products $22.2 $5.6 $5.7 Adjusted EBITDA* $131.3 $35.0 $35.5 Unallocated SG&A $(15.2) $(3.8) $(3.8) Total Adjusted EBITDA $116.1 $31.2 $31.7 Sulfur Services 2024E Guidance 2Q24 Guidance 2Q24A Fertilizer $14.8 $6.7 $6.7 ELSA $0.9 — — Sulfur $12.5 $3.1 $3.8 Total Sulfur Services $28.3 $9.8 $10.6 Transportation 2024E Guidance 2Q24 Guidance 2Q24A Land $29.7 $6.5 $8.2 Marine $15.6 $3.8 $2.9 Total Transportation $45.4 $10.2 $11.2 Note: numbers may not add due to rounding *Pre-Unallocated SG&A Transportation Terminalling & Storage Sulfur Services Specialty Products SG&A Interest Expense 2Q 2024 Actual Net income (loss) $8.0 $3.3 $7.5 $4.9 $(5.6) $(14.4) $3.8 Interest expense add back — — — — — $14.4 $14.4 Income tax expense — — — — $1.8 — $1.8 Operating income (loss) $8.0 $3.3 $7.5 $4.9 $(3.8) $0.0 $19.9 Depreciation and amortization $3.4 $5.7 $2.8 $0.8 — — $12.7 (Gain) loss on sale of property, plant, and equipment $(0.3) $(1.0) 0.3 — — — $(1.0) Unit-based compensation — — — — $0.1 — 0.1 Adjusted EBITDA $11.2 $8.0 $10.6 $5.7 $(3.8) $0.0 $31.7

Page 3 MMLP 2024E Adjusted EBITDA Guidance (in millions) Note: numbers may not add due to rounding *Pre-Unallocated SG&A Terminalling & Storage 1Q24A 2Q24A 3Q24E 4Q24E 2024E Smackover Refinery $4.1 $3.1 $4.5 $4.5 $16.1 Specialty Terminals $3.1 $2.9 $3.2 $3.0 $12.2 Shore-Based Terminals $1.7 $1.5 $0.9 $1.4 $5.5 Underground Storage $0.1 $0.6 $0.5 $0.4 $1.6 Total Terminalling & Storage $9.0 $8.0 $9.0 $9.4 $35.4 Fixed-Fee Specialty Products 1Q24A 2Q24A 3Q24E 4Q24E 2024E Lubricants $1.5 $2.5 $3.6 $1.6 $9.2 Margin Grease $2.5 $2.7 $2.4 $1.9 $9.5 Margin Propane $1.1 $0.3 $0.3 $0.9 $2.5 Margin Natural Gasoline $0.3 $0.3 $0.2 $0.3 $1.1 Fixed-Fee Total Specialty Products $5.4 $5.7 $6.5 $4.6 $22.2 Sulfur Services 1Q24A 2Q24A 3Q24E 4Q24E 2024E Fertilizer $4.2 $6.7 $0.7 $3.2 $14.8 Margin ELSA — — — $0.9 $0.9 Fixed-Fee Sulfur $2.5 $3.8 $3.1 $3.1 $12.5 Fixed-Fee Total Sulfur Services $6.7 $10.6 $3.7 $7.3 $28.3 Transportation 1Q24A 2Q24A 3Q24E 4Q24E 2024E Land $9.0 $8.2 $6.4 $6.2 $29.7 Marine $4.2 $2.9 $4.4 $4.0 $15.6 Total Transportation $13.2 $11.2 $10.8 $10.2 $45.4 Fixed-Fee Adjusted EBITDA* $34.2 $35.5 $30.2 $31.5 $131.3 Unallocated SG&A $(3.8) $(3.8) $(3.8) $(3.8) $(15.2) Total Adjusted EBITDA $30.4 $31.7 $26.4 $27.7 $116.1 Included in maintenance capex is $9.8 million of turnaround costs. Included in growth capex is $18.4 million for ELSA.

Disclaimers Page 4 Use of Non-GAAP Financial Measures Forward Looking Statements This presentation includes certain non-GAAP financial measures such as EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow. These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States (GAAP). A reconciliation of non-GAAP financial measures included in this presentation to the most directly comparable financial measures calculated and presented in accordance with GAAP is set forth in the Appendix of this presentation or on our web site at www.MMLP.com. MMLP’s management believes that these non-GAAP financial measures may provide useful information to investors regarding MMLP’s financial condition and results of operations as they provide another measure of the profitability and ability to service its debt and are considered important measures by financial analysts covering MMLP and its peers. The Partnership has not provided comparable GAAP financial information on a forward-looking basis because it would require the Partnership to create estimated ranges on a GAAP basis, which would entail unreasonable effort. Adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with reasonable certainty but may include, among others, costs related to debt amendments and unusual charges, expenses and gains. Some or all of those adjustments could be significant. 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 1995. These forward-looking statements and all references to financial or operational estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (ii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission. The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.

Martin Midstream Partners 4200 B Stone Road Kilgore, Texas 75662 903.983.6200 www.MMLP.com

Cover	Jul. 17, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 17, 2024
Entity Registrant Name	MARTIN MIDSTREAM PARTNERS L.P.
Entity Incorporation, State	DE
Entity File Number	000-50056
Entity Tax Identification Number	05-0527861
Entity Address, Address Line One	4200 Stone Road
Entity Address, City or Town	Kilgore
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75662
City Area Code	903
Local Phone Number	983-6200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Common Units representing limited partnership interests
Trading Symbol(s)	MMLP
Name of each exchange on which registered	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001176334
Amendment Flag	false