|Over a month ago|
Martin Midstream appoints Robert Bondurant as CEO, Sharon Taylor as CFO » 08:2610/2210/22/20
Martin Midstream Partners…
Martin Midstream Partners announced that Robert Bondurant has been appointed President and CEO effective January 1, 2021. The Partnership's founder, Ruben Martin has decided to retire as President and CEO of the Partnership on December 31, 2020, but will remain as Chairman of the Board of the Partnership's general partner and will continue to be actively involved in business development for the Partnership. The Partnership was formed in 2002 by Martin Resource Management Corporation, a privately-held company that was founded by R.S. Martin, Ruben Martin's father. Mr. Martin has served as President, CEO and a member of the Board of Directors of the Partnership's general partner since that time. Mr. Martin will continue as President of MRMC, a position he has held since 1981. Bondurant joined MRMC in 1983 and subsequently was appointed Executive Vice President and CFO of the Partnership in June 2002. He became a member of its Board of Directors in 2014. Additionally, the Partnership announced today that Sharon Taylor has been appointed as Vice President and CFO effective January 1, 2021. Ms. Taylor joined the Partnership in 2005 and most recently served as its Director of Finance and Head of Investor Relations.
Martin Midstream Partners sees 2020 adjusted EBITDA $95M-$107M » 17:0510/2110/21/20
Targets 2020 expansion…
Targets 2020 expansion CapEx $10M-$13M and maintenance CapEx $14M-$16M.
Martin Midstream Partners reports Q3 EPS (27c), consensus (24c) » 17:0410/2110/21/20
Reports Q3 revenue…
Reports Q3 revenue $152.53M, consensus $106.12M. CEO Ruben Martin said, "The Partnership delivered strong results in Q3 even with the continuing impact on demand related to COVID-19 coupled with hurricanes in the Gulf Coast region effecting refinery operations. The diversity of our business model and customer base has proven resilient in these difficult and changing macro-economic times. Although Q3 is typically our weakest, due to the cyclical nature of our businesses, we had year over year EBITDA growth in three of our four business segments. Our team continues to make every effort to provide our employees and customers with a safe and healthy operating environment."
Martin Midstream Partners reports minimum damage following Hurricane Laura » 16:0208/2808/28/20
Martin Midstream Partners…
Martin Midstream Partners LP announced the status of its coastal Texas and Louisiana terminals following Hurricane Laura. Upon initial inspection of the properties there appears to be minimal damage to the Partnership's terminals and marine equipment. The process of restarting the sites has begun and the company expects to be fully operational on Monday, August 31. Prior to Hurricane Laura making landfall the Partnership enacted its standard hurricane preparedness protocol to minimize operational delays and damages to terminalling and marine assets located around the Gulf Coast. Beginning on Monday, August 24, terminals located in the projected path of the hurricane were secured and personnel given the opportunity to evacuate their families to safety. In addition, marine equipment was moved to safe haven areas and communications scheduled to monitor the event status as Hurricane Laura made landfall along the Gulf Coast. "As Hurricane Laura approached the Gulf Coast our focus was on the safety and health of our personnel, their families and those impacted by the storm," said Ruben S. Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of MMLP. "We are extremely thankful for the dedicated work of our employees tasked with securing our assets to limit damage across our system. While we did sustain minimal damage at some of our terminals, at this time we do not expect a material financial impact from this event. Our thoughts are with the Gulf Coast region and we will continue to support our personnel and their communities as they recover from damages resulting from the storm."
|Over a quarter ago|
Martin Midstream Partners reports Q2 EPS (6c), consensus (6c) » 16:3607/2707/27/20
Reports Q2 revenue…
Reports Q2 revenue $140.6M consensus $105.76M. At June 30, the Partnership had $181M drawn on its $400M revolving credit facility, an $11M increase from March 31, 2020. Accordingly, the Partnership's leverage ratio, as calculated under the revolving credit facility, was 4.8 times on June 30, 2020 compared to 4.7 times on March 31. The Partnership is in compliance with all debt covenants as of June 30.
Martin Midstream Partners enters restructuring support agreement » 07:0506/2606/26/20
Martin Midstream Partners…
Martin Midstream Partners announced that it, its general partner, Martin Midstream GP LLC, and its subsidiaries Martin Midstream Finance Corp., Martin Operating GP LLC, Martin Operating Partnership L.P., Redbird Gas Storage LLC, Talen's Marine & Fuel, LLC and Martin Transport, Inc. have entered into a restructuring support agreement with holders that beneficially own over 62% in principal amount of the Partnership and FinanceCo's 7.25% Unsecured Notes due 2021. The Restructuring Support Agreement contemplates that the Partnership and FinanceCo will commence an out-of-court exchange offer to exchange Existing Notes for a combination of cash, 11.50% Senior Secured Second Lien Notes due 2025, and rights to acquire 10.00% Senior Secured 1.5 Lien Notes due 2024, subject to the terms and conditions of the Restructuring Support Agreement. In connection with the Exchange Offer, the Company will also commence a consent solicitation to make certain proposed amendments to the terms of the indenture governing the Existing Notes by eliminating or modifying certain restrictive covenants and other provisions. There are various closing conditions contemplated under the Restructuring Support Agreement including, among other things, the negotiation of definitive documentation and a minimum tender condition of 95% in principal amount of the Existing Notes in the Exchange Offer and consent solicitation. As an alternative to the Exchange Offer, the Company agreed in the Restructuring Support Agreement to solicit acceptances from eligible holders of the Existing Notes of a prepackaged plan of reorganization. In the event certain conditions to the Exchange Offer are not satisfied, and if a sufficient number of holders and amount of Existing Notes vote to accept the Prepackaged Plan, the Company intends to file petitions under chapter 11 of the U.S. Bankruptcy Code and pursue an in-court restructuring to implement the transactions contemplated herein. Pursuant to the Restructuring Support Agreement, the Supporting Holders have agreed to, among other things, support and use commercially reasonable efforts to complete the financial restructuring, including by tendering their Existing Notes in the Exchange Offer, delivering their consents in the related consent solicitation and voting in favor of the Prepackaged Plan. The Restructuring Support Agreement may be terminated by the Supporting Holders or the Company upon the occurrence of certain events enumerated in the Restructuring Support Agreement. In connection with the Restructuring Support Agreement and subject to agreement upon mutually acceptable definitive documentation, the Supporting Holders are agreeing to purchase any unsubscribed New Notes that have not been purchased by eligible holders in the rights offering as part of the Exchange Offer, or if the Exchange Offer and related Cash Tender Offer are not consummated, pursuant to the Prepackaged Plan. The purposes of the Exchange Offer and the issuance of the Exchange Notes and New Notes are to extend the maturities of the Company's indebtedness. The Company expects to continue the operation of its business in the ordinary course and does not anticipate interruption in its operations during the restructuring regardless of whether the Company conducts its restructuring in or out of the chapter 11 process. The transactions contemplated by the Restructuring Support Agreement are not intended to impact trade vendors, employees, customers, or any related contractual agreements or obligations. The Partnership's common units will remain outstanding and are not a part of the transactions contemplated by the Restructuring Support Agreement. The Company also expects to continue to have access to all necessary funds under its revolving credit facility, subject to the amendment of such revolving credit facility and receiving any related consents from its lenders.
Martin Midstream Partners withdraws prior FY20 guidance amid COVID-19 » 17:0804/2204/22/20
The Partnership is…
The Partnership is withdrawing its 2020 guidance published on January 28, 2020 for lack of visibility around reduced refinery utilization due to lower global demand for refined products as a result of COVID-19.
Martin Midstream Partners reports Q1 EPS 22c, may not compare to consensus 13c » 17:0704/2204/22/20
Reports Q1 revenue…
Reports Q1 revenue $198.9M, consensus $216.1M. Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "Operationally the Partnership was not immune to the impact of the COVID-19 pandemic and associated dislocation in the energy industry. However, the strategic steps commenced by the Partnership in July 2018 to return to a diversified specialty services midstream business with limited direct upstream exposure, should serve us well during this crisis and its severe economic impact. The Partnership is prioritizing the safety of our operations to protect the health of our employees, while continuing to focus on maintaining our long-term relationships with customers, vendors and stakeholders. "In the first quarter, the Partnership was negatively impacted by lower refinery utilization and emerging demand weakness. The Terminalling and Storage segment beat first quarter guidance though the lubricants division began showing signs of weakening demand as we approached the end of the quarter. In the Sulfur Services segment, a delayed planting season reduced projected fertilizer sales; however, we are optimistic that the Partnership should regain some of this shortfall in the second quarter. This segment was further affected by lower refinery utilization which decreased sulfur volumes resulting in reduced operating fees in our sulfur prilling business. In the Transportation segment, better than expected marine performance was offset by falling refinery customer demand for our trucking services. Finally, the Natural Gas Liquids segment performance was impacted by lower butane margins.
Martin Midstream to reduce quarterly cash distribution to re-allocate capital » 16:1001/2801/28/20
"Despite the positive quarter and the strategic actions taken over the last eighteen months to strengthen our balance sheet and reduce leverage, we believe more is required. While our efforts have resulted in an adjusted leverage ratio of 4.69 times and distribution coverage ratio of 1.05 times at year-end 2019, we are still above our stated goals for both ratios. In order to be competitive in today's capital markets, adjusted leverage of below 4.00 times and a distribution coverage ratio of above 1.30 times is required. To provide further financial flexibility, we are resetting our annual distribution to $0.25 per unit. The Partnership will retain approximately $28.9 million annually, due to the distribution reduction, which along with estimated 2020 positive cash flow will be used for further debt reduction and future high return investment opportunities at our Beaumont and Corpus Christi facilities. As discussed above, the Partnership announced it has declared a quarterly cash distribution of $0.0625 per unit, or $0.25 per unit on an annualized basis, for the quarter ended December 31, 2019. The distribution is payable on February 14, 2020 to common unitholders of record as of the close of business on February 7, 2020. The ex-dividend date for the cash distribution is February 6, 2020.
Martin Midstream Partners sees FY20 adjusted EBITDA of $117.1M » 16:0801/2801/28/20
"Moving to 2020…
"Moving to 2020 guidance, we estimate net income of $0.2 million and adjusted EBITDA of $117.1 million, with the majority of cash flow generated by fee based services. Our maintenance capital expenditures are forecasted to be $17.4 million, resulting in distributable cash flow of $49.6 million."