Beaumont LHG Project Review
April 2, 2013
Confidential
NASDAQ: MMLP
www.martinmidstream.com
MARTIN RESOURCE MANAGEMENT CORPORATION
Confidential
Martin Resource Management Corporation
GENERAL PARTNER OVERVIEW
•
Based in Kilgore, TX, Martin Resource Management Company (“MRMC”) is a leading
independent provider of integrated logistics solutions, storage, manufacturing,
marketing and distribution services to energy, petrochemical and other industrial
concerns
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Approximately 2,600 employees
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In addition to owning the general partner of MMLP, MRMC operating entities represent
revenue in excess of $2.0B
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Approximately 70% employee owned
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MARTIN MIDSTREAM PARTNERS L.P.
Confidential
Martin Midstream Partners L.P.
MARTIN MIDSTREAM PARTNERS L.P. (MMLP) OVERVIEW
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NASDAQ Listed: MMLP
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Formed October 31, 2002
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MMLP is a publicly traded, diversified master
limited partnership with operations including:
•
•
Terminalling & Storage
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Natural Gas Services
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Sulfur Services
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Marine Transportation
MMLP Trading Summary (1)
Confidential
•
Unit Price:
$38.41
•
Units Outstanding
26.6 million
•
Market Cap:
$1.02 billion
•
Quarterly Distribution: $0.77
•
Current Yield:
(1) As
of March 28, 2013
8.2%
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Martin Midstream Partners L.P.
PARTNERSHIP SNAPSHOT
~39%
Leading Midstream Company With Four
~34%
Diversified Business Segments
Terminalling & Storage
Sulfur Services
~14%
~13%
(NASDAQ: MMLP)
Formed on October 31, 2002
Market Capitalization:
Natural Gas Services
$1.02 Billion
Pro Forma FYE 2012 Adjusted EBITDA: $137.4 Million
Marine Transportation
Note: Percentages above represent approximate 2012 EBITDA contribution, and market capitalization as of market close on March 18, 2013
Confidential
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Martin Midstream Partners L.P.
ATTRACTIVE OPERATING FOOTPRINT
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Strategic operations across 48 locations in 10 states primarily in the Gulf Coast Region
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Favorable proximity to major refining regions of the U.S.
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Coast-to-coast integrated sulfur infrastructure, including access to export markets
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Marine service terminals providing broad geographic coverage and distribution
capabilities
Confidential
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Martin Midstream Partners L.P.
HIGH QUALITY CUSTOMER BASE
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Integrated yet complementary business segments, scale and brand recognition
make MMLP a premier supplier of products and services
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Customers include major oil and gas companies, independent refiners, larger
chemical companies and fertilizer manufacturers
•
Long-term relationships provide stable revenue and cash flow generation with
typical 1-5 year contracts
Confidential
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Martin Midstream Partners L.P.
MARINE TRANSPORTATION
Martin Resource Management Corporation
SEGMENT OVERVIEW – MARINE TRANSPORTATION
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MMLP’s Marine Transportation segment includes the following key assets
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60 inland marine tank barges
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25 inland push-boats
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5 offshore tug barge units
Market Drivers
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Equipment Supply vs. Demand
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Economic Activity
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Refinery Utilization & Crack Spreads
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Equipment Retirement vs. New
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Floating Storage
Contract mix reflects
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Major Oil Companies
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International Trading Companies
•
Martin Family of Companies
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MARTIN MIDSTREAM PARTNERS L.P.
BEAUMONT LHG PROJECT
Confidential
Martin Midstream Partners L.P.
MARTIN STANOLIND TERMINAL LOCATION
Martin Stanolind Terminal
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Martin Midstream Partners L.P.
STANOLIND TERMINAL – General Information
• Location - 30° 2'14.36"N 94° 2'49.20”W
• Distance from Waterway Jetties 33.4 nm
• Distance from ICWW West 22 nm
• Distance from ICWW East 11.5 nm
• Terminal - 645 foot Pier
• Current Cargoes Handled
• Molten Sulfur
• Oil/Petroleum – #6FO/Asphalt/Crude Oil
• Sulfuric Acid
• Current Types of Vessels
• Chemical Tankers
• Tow and Barge (Inland)
• Tow and Barge (Oceans)
Confidential
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Martin Midstream Partners L.P.
STANOLIND TERMINAL - Navigation
• Current Traffic Density on Monthly Basis
• 20 Tow and Barge (Inland)
• 3 – 4 Tow and Barge (Ocean)
• 2 Panamax Chemical Tankers
• Current Navigational Restrictions
• Maximum beam of 106 feet
• Maximum length of 625 feet
• Maximum draft of 31 feet
Confidential
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Martin Midstream Partners L.P.
STANOLIND TERMINAL – Proposed Operations
• Future Cargoes - 33 CFR 127 Facility
• Liquefied Hazardous Gases – Propane and Butane
• Natural gasoline
• Future Types of Vessels
• Tow and Barge (Inland) 15,000 bbl capacity Type II LHG
• Semi-Refrigerated LHG Tanker 6,000 to 16,000 m3 capacity
• Navigational Restrictions
• None; all tankers within limits placed by Pilots
Confidential
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Martin Midstream Partners L.P.
STANOLIND TERMINAL – Tanker Specifications
Typical 6,000 m3 Tanker
Typical 16,000 m3 Tanker
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Martin Midstream Partners L.P.
STANOLIND TERMINAL – Barge Tow Specifications
Typical Three Tank LHG Inland Barge
Length Overall:
Width:
Draft
Tank Capacities:
222 feet
54 feet
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Cargo Tank 1: @5,000 bbl (800 m3)
Cargo Tank 2: @5,000 bbl (800 m3)
Total Capacity: @15,000 bbl (2,400 m3) Cargo Tank 3: @5,000 bbl (800 m3)
Tank Type: Type II Horizontal cylindrical type with
hemispherical ends 14.8 by 180 feet in
length
Tank Pressures (max) USCG: 265 psig
Typical Two Tank LHG Inland Barge
Length Overall:
Width:
Draft
Tank Capacities:
Total Capacity: @15,000 bbl (2,400 m3)
Tank Type:
245 feet
48 feet
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Cargo Tank 1: @7,500 bbl (1,200 m3)
Cargo Tank 2: @7,500 bbl (1,200 m3)
Type II Horizontal cylindrical type with
hemispherical ends 17 by 202.75 feet in
length
Tank Pressures (max) USCG: 265 psig
Confidential
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Martin Midstream Partners L.P.
STANOLIND TERMINAL – Operational Overview
• Transfer Operations
• Direct (Across Pier) transfer to tanker; closed loop
• Cargo carried at Saturated Vapor Pressure and Ambient Temperatures
• One barge Discharge; Transfer Rate @500 bbl/hr
• Transits – Ports of Call
• LHG Tanker – Arrive empty/load for Foreign Ports; Sabine Neches
Waterway
• Barges – Three Barge Tow; arrive via ICWW loaded and depart empty
• 3 – 5 transits of Sabine Neches Waterway per month by Tanker
• 5 – 6 transits of ICWW and Sabine Neches Waterway per month by Tow
• Stanolind Infrastructure
• No shore side storage tanks; transfer augmentation equipment
(compressor etc.)
• Simple cross pier transfer operation
Confidential
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Martin Midstream Partners L.P.
STANOLIND TERMINAL – Transfer Operation Schematic
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