GlobeNewswire Inc | Jul 27, 2020 04:01PM EDT

July 27, 2020

-- Reported net loss of $2.2 million and net income of $6.6 million for the three and six months ended June 30, 2020, respectively -- Reported adjusted EBITDA of $23.9 million and $54.9 million for the three and six months ended June 30, 2020, respectively -- Generated distributable cash flow of $12.5 million and $30.8 million for the three and six months ended June 30, 2020, resulting in a quarterly distribution coverage ratio of 5.10 times and 6.26 times, respectively -- As previously disclosed, exchange offer and cash tender offer early participation of $335.5 million aggregate principal amount, or 92.045% of all outstanding senior unsecured notes -- Adjusts quarterly cash distribution to $0.005 or $0.020 per unit annually as required by the credit facility amendment dated July 8, 2020

KILGORE, Texas, July 27, 2020 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") today announced its financial results for the second quarter of 2020.

"We are pleased with our second quarter results as we continue to navigate through the crisis brought on by the COVID-19 pandemic," commented Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership. "Entering into the quarter we were beginning to see the negative impacts of reduced refinery utilization on our businesses. However, as expected, the performance of our fertilizer division offset a portion of the impact as sales were strong through the corn planting season. Overall we remain confident in our diversified business model during these challenging times and fully expect to meet our guidance, although the uncertainty around containment of the virus and the length of the disruption to our economy and society continues to blur our line of sight for the near future. I want to commend our team for their commitment to safe and reliable operations that protect the health of our workforce and business partners while continuing to deliver positive results.

"Finally, I would like to thank our lenders and noteholders for the support they have given the Partnership through the amendment of our revolving credit facility and the refinancing of our senior notes by the exchange offer that was launched July 9th. As previously announced, the early participation results were 92.045%, slightly below the 95.0% requirement under the Restructuring Support Agreement. However, we are optimistic the threshold percentage will be met prior to the expiration date and anticipate settling the exchange on August 12th. Although we regret the need to reduce the cash distribution due to leverage covenant conditions contained in the revolving credit facility, the Partnerships extended debt maturity profile and improved liquidity allow us to continue to strengthen our balance sheet and reduce leverage while focusing on our long-term vision for the business."

SECOND QUARTER 2020 OPERATING RESULTS BY BUSINESS SEGMENT

TERMINALLING AND STORAGE (T&S)

T&S Operating Income for the three months ended June 30, 2020 and 2019 was $3.3 million and $4.4 million, respectively.

Adjusted segment EBITDA for T&S was $10.6 million and $12.3 million for the three month periods ended June 30, 2020 and 2019, respectively, reflecting reduced volumes in the lubricants business related to lower demand in the oil field and construction industries due to COVID-19, expired capital recovery fees at the Smackover Refinery and decreased fees related to a crude pipeline gathering rate adjustment.

TRANSPORTATION

Transportation Operating Income for the three months ended June 30, 2020 and 2019 was $0.6 million and $3.3 million, respectively.

Adjusted segment EBITDA for Transportation was $4.9 and $8.7 for the three months ended June 30, 2020 and 2019, respectively, reflecting lower land transportation load count and lower marine utilization related to demand destruction and lower refinery utilization as a result of COVID-19.

SULFUR SERVICES

Sulfur Services Operating Income for the three months ended June 30, 2020 and 2019 was $7.4 million and $5.3 million, respectively.

Adjusted segment EBITDA for Sulfur Services was $10.8 and $8.6 for the three months ended June 30, 2020 and 2019 respectively, reflecting increased volumes in the fertilizer business slightly offset by reduced sulfur volumes due to lower refinery utilization impacted by demand destruction around COVID-19.

NATURAL GAS LIQUIDS (NGL)

NGL Operating Income (Loss) for the three months ended June 30, 2020 and 2019 was $1.1 million and $(3.4) million, respectively.

Adjusted segment EBITDA from continuing operations for NGL was $1.6 million and $(0.2) million for the three months ended June 30, 2020 and 2019, respectively, reflecting an increase in volumes and margins in 2020 and losses in 2019 from commodity hedging contracts related to activities in the butane optimization business.

UNALLOCATED SELLING, GENERAL AND ADMINISTRATIVE EXPENSE (USGA)

USGA expenses included in operating income were $4.4 million and $4.6 million for the three months ended June 30, 2020 and 2019 respectively.

USGA expenses included in adjusted EBITDA were $4.0 million and $4.3 million for the three months ended June 30, 2020 and 2019 respectively, reflecting a decrease in professional fees.

2020 FINANCIAL GUIDANCE UPDATE

The majority of our refinery services are focused on the Gulf Coast Region whose states have reopened their economies. However, the impact on refinery utilization due to demand destruction related to the current increase in COVID-19 cases remains unclear. As a result, the Partnership is not providing detailed segment guidance for 2020 but instead providing an estimated range for Adjusted EBITDA, Expansion Capital Expenditures and Maintenance Capital Expenditures.

MMLP 2020 Guidance $ millionsAdjusted EBITDA $95 - 107Expansion Capital Expenditures $10 - 13^1Maintenance Capital Expenditures $14 - 16

1 On July 9, 2020, the Partnership executed a long-term terminalling service agreement with a third-party customer that requires upgrades to a tank at our Tampa terminal. Expansion Cap Ex guidance range increased by ~$2.0 million related to those upgrades.

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 as the adjustments required to reconcile forward-looking non-GAAP measures cannot be predicted with a reasonable degree of 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.

LIQUIDITY

At June 30, 2020, the Partnership had $181 million drawn on its $400 million revolving credit facility, an $11 million increase from March 31, 2020. Accordingly, the Partnerships 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, 2020. The Partnership is in compliance with all debt covenants as of June 30, 2020.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended June 30, 2020. The distribution is payable on August 14, 2020 to common unitholders of record as of the close of business on August 7, 2020. The ex-dividend date for the cash distribution is August 6, 2020.

COVID-19 RESPONSE

The Partnership initiated protocols in response to the COVID-19 pandemic which include work from home initiatives to protect the health and safety of our employees as well as the communities where we operate, travel restrictions, and training personnel regarding preventative measures when accessing docks, vessels and operating locations. At this time all facilities are operational and monitored closely.

RESULTS OF OPERATIONS

The Partnership had a net loss from continuing operations for the three months ended June 30, 2020 of $2.2 million, a loss of $0.06 per limited partner unit. The Partnership had a net loss from continuing operations for the three months ended June 30, 2019 of $10.6 million, a loss of $0.27 per limited partner unit. Adjusted EBITDA from continuing operations for the three months ended June 30, 2020 was $23.9 million compared to the three months ended June 30, 2019 of $23.5 million. Distributable cash flow from continuing operations for the three months ended June 30, 2020 was $12.5 million compared to the three months ended June 30, 2019 of $6.4 million.

The Partnership had no net income from discontinued operations for the three months ended June 30, 2020 compared to a loss of $180.6 million, or $4.55 per limited partner unit for the three months ended June 30, 2019. The Partnership had no adjusted EBITDA from discontinued operations for the three months ended June 30, 2020 compared to $5.5 million for the three months ended June 30, 2019. The Partnership had no distributable cash flow from discontinued operations for the three months ended June 30, 2020 compared to $4.9 million for the three months ended June 30, 2019.

The Partnership had net income from continuing operations for the six months ended June 30, 2020 of $6.6 million, or $0.17 per limited partner unit. The Partnership had a net loss from continuing operations for the six months ended June 30, 2019 of $15.4 million, a loss of $0.39 per limited partner unit. Adjusted EBITDA from continuing operations for the six months ended June 30, 2020 was $54.9 million compared to the six months ended June 30, 2019 of $50.8 million. Distributable cash flow from continuing operations for the six months ended June 30, 2020 was $30.8 million compared to the six months ended June 30, 2019 of $12.7 million.

The Partnership had no net income from discontinued operations for the six months ended June 30, 2020 compared to a loss of $179.5 million, or $4.52 per limited partner unit for the six months ended June 30, 2019. The Partnership had no adjusted EBITDA from discontinued operations for the six months ended June 30, 2020 compared to $10.7 million for the six months ended June 30, 2019. The Partnership had no distributable cash flow from discontinued operations for the six months ended June 30, 2020 compared to $9.8 million for the six months ended June 30, 2019.

Revenues for the three months ended June 30, 2020 were $140.6 million compared to the three months ended June 30, 2019 of $187.3 million. Revenues for the six months ended June 30, 2020 were $339.5 million compared to the six months ended June 30, 2019 of $427.4 million.

Distributable cash flow from continuing operations, distributable cash flow from discontinued operations, EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations 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 from continuing operations, and Distributable 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 accompanying this announcement and included in the Current Report on Form 8-K to which this announcement is included, contains a comparison of the Partnerships Adjusted EBITDA for the second quarter 2020 to the Partnership's Adjusted EBITDA for 2019 and is available at http://ml.globenewswire.com/Resource/Download/aada0f04-add2-4687-a0f4-8dd1597d80e3.

Investors' Conference Call

An investors conference call to review the second quarter results will be held on Tuesday, July 28, 2020 at 8:00 a.m. Central Time. The live conference call will be available by calling (877) 878-2695. For a limited time, an audio replay of the conference call will be available by calling (855) 859-2056. The conference ID is 9677403. An archive of the replay will be on Martin Midstream Partners website at www.MMLP.com.

About Martin Midstream Partners

Martin Midstream Partners L.P. is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business lines include: (1) terminalling, processing, storage, and packaging 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) natural gas liquids marketing, distribution and transportation services.

Forward-Looking Statements

Statements about the Partnerships 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 current and potential impacts of the COVID-19 pandemic generally, on an industry-specific basis, and on the Partnerships specific operations and business, (ii) the Partnerships ability to refinance its senior unsecured notes due February 15, 2021 prior to August 19, 2020, (iii) the Partnerships pursuit of strategic alternatives, (iv) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, and (v) 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 Partnerships 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.

Use of Non-GAAP Financial Information

The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow. The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.

EBITDA, Adjusted EBITDA from Continuing Operations, and Adjusted EBITDA from Discontinued Operations. Certain items excluded from EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. The Partnership has included information concerning EBITDA, adjusted EBITDA from continuing operations, and adjusted EBITDA from discontinued operations because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.

Distributable Cash Flow and Distributable Cash Flow from Discontinued Operations.Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its 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.

EBITDA, adjusted EBITDA from continuing operations, adjusted EBITDA from discontinued operations, distributable cash flow, and distributable cash flow from discontinued operations, should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.

Additional information concerning the Partnership is available on the Partnership's website at www.MMLP.com or by contacting:

Sharon Taylor - Head of Investor Relations(877) 256-6644

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED BALANCE SHEETS(Dollars in thousands)

June 30, 2020 December 31, 2019 (Unaudited) (Audited)Assets Cash $ 52 $ 2,856 Accounts and other receivables, less allowancefor doubtful accounts of $516 and $532, 48,517 87,254 respectivelyInventories 65,668 62,540 Due from affiliates 18,889 17,829 Other current assets 9,605 5,833 Assets held for sale ? 5,052 Total current assets 142,731 181,364 Property, plant and equipment, at cost 899,225 884,728 Accumulated depreciation (493,115 ) (467,531 ) Property, plant and equipment, net 406,110 417,197 Goodwill 17,705 17,705 Right-of-use assets 24,554 23,901 Deferred income taxes, net 22,404 23,422 Other assets, net 3,475 3,567 Total assets $ 616,979 $ 667,156 Liabilities and Partners? Capital (Deficit) Current installments of long-term debt and $ 368,150 $ 6,758 finance lease obligationsTrade and other accounts payable 45,785 64,802 Product exchange payables 5,133 4,322 Due to affiliates 444 1,470 Income taxes payable 498 472 Fair value of derivatives ? 667 Other accrued liabilities 26,496 28,789 Total current liabilities 446,506 107,280 Long-term debt, net 176,794 569,788 Finance lease obligations 405 717 Operating lease liabilities 17,081 16,656 Other long-term obligations 10,000 8,911 Total liabilities 650,786 703,352 Commitments and contingencies Partners? capital (deficit) (33,807 ) (36,196 ) Total partners? capital (deficit) (33,807 ) (36,196 ) Total liabilities and partners' capital (deficit) $ 616,979 $ 667,156

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019Revenues: Terminalling and $ 19,908 $ 21,377 $ 40,382 $ 44,481 storage*Transportation* 31,485 41,321 70,426 79,116 Sulfur services 2,914 2,858 5,829 5,717 Product sales: * Natural gas 30,299 57,398 112,510 173,872 liquidsSulfur services 30,506 32,998 55,914 61,732 Terminalling and 25,526 31,371 54,460 62,438 storage 86,331 121,767 222,884 298,042 Total revenues 140,638 187,323 339,521 427,356 Costs and expenses:Cost of productssold: (excluding depreciation andamortization)Natural gas 24,293 53,546 94,128 159,736 liquids *Sulfur services * 17,559 22,124 32,854 41,820 Terminalling and 21,438 26,118 45,118 52,989 storage * 63,290 101,788 172,100 254,545 Expenses: Operating 44,202 53,579 95,484 105,428 expenses*Selling, generaland 9,858 10,226 20,320 20,426 administrative*Depreciation and 15,343 15,087 30,582 29,988 amortizationTotal costs and 132,693 180,680 318,486 410,387 expenses Other operatingincome (loss), 15 (1,633 ) 2,525 (2,353 ) netOperating income 7,960 5,010 23,560 14,616 Other income (expense):Interest expense, (9,377 ) (14,986 ) (19,302 ) (28,657 ) netGain onretirement of ? ? 3,484 ? senior unsecurednotesOther, net 4 1 7 4 Total other (9,373 ) (14,985 ) (15,811 ) (28,653 ) expense Net income (loss) (1,413 ) (9,975 ) 7,749 (14,037 ) before taxesIncome tax (790 ) (639 ) (1,137 ) (1,335 ) expenseIncome (loss)from continuing (2,203 ) (10,614 ) 6,612 (15,372 ) operationsIncome fromdiscontinued ? (180,568 ) ? (179,466 ) operations, netof income taxesNet income (loss) (2,203 ) (191,182 ) 6,612 (194,838 ) Less generalpartner's 44 3,824 (132 ) 3,897 interest in net(income) lossLess (income)loss allocable to 10 65 (45 ) 67 unvestedrestricted unitsLimited partners'interest in net $ (2,149 ) $ (187,293 ) $ 6,435 $ (190,874 ) income (loss)

*Related Party Transactions Shown Below

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)

*Related Party Transactions Included Above

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019Revenues:* Terminalling $ 15,942 $ 17,477 $ 31,816 $ 36,449 and storageTransportation 5,393 5,856 11,287 11,499 Product Sales 38 286 130 707 Costs and expenses:*Cost ofproducts sold:(excluding depreciationandamortization)Sulfur 2,554 2,884 5,321 5,458 servicesTerminalling 4,249 7,203 10,026 13,112 and storageExpenses: Operating 19,440 24,407 41,211 46,943 expensesSelling,general and 8,055 8,558 16,367 17,093 administrative

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands, except per unit amounts)

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019Allocation of netincome (loss) attributable to: Limited partner interest:Continuing $ (2,149 ) $ (10,398 ) $ 6,435 $ (15,060 ) operationsDiscontinued ? (176,895 ) ? (175,814 ) operations $ (2,149 ) $ (187,293 ) $ 6,435 $ (190,874 ) General partner interest: Continuing $ (44 ) $ (212 ) $ 132 $ (307 ) operations Discontinued ? (3,612 ) ? (3,590 ) operations $ (44 ) $ (3,824 ) $ 132 $ (3,897 ) Net income (loss)per unit attributable tolimited partners:Basic: Continuing $ (0.06 ) $ (0.27 ) $ 0.17 $ (0.39 ) operationsDiscontinued ? (4.55 ) ? (4.52 ) operations $ (0.06 ) $ (4.82 ) $ 0.17 $ (4.91 ) Weighted averagelimited partner 38,662 38,871 38,651 38,912 units - basicDiluted: Continuing $ (0.06 ) $ (0.27 ) $ 0.17 $ (0.39 ) operationsDiscontinued ? (4.55 ) ? (4.52 ) operations $ (0.06 ) $ (4.82 ) $ 0.17 $ (4.91 ) Weighted averagelimited partner 38,662 38,871 38,652 38,912 units - diluted

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)(Dollars in thousands)

Partners? Capital (Deficit) Common Limited General Parent Net Partner Investment Units Amount Amount Total

Balances -January 1, $ 23,720 39,032,237 $ 258,085 $ 6,627 $ 288,432 2019Net loss ? ? (190,941 ) (3,897 ) (194,838 ) Issuance ofcommon units, ? ? (259 ) ? (259 ) netIssuance ofrestricted ? 16,944 ? ? ? unitsForfeiture ofrestricted ? (154,288 ) ? ? ? unitsCash ? ? (28,851 ) (589 ) (29,440 ) distributionsUnit-based ? ? 715 ? 715 compensationPurchase oftreasury ? (31,504 ) (392 ) ? (392 ) unitsExcesspurchaseprice overcarrying ? ? (102,393 ) ? (102,393 ) value ofacquiredassetsDeferredtaxes onacquired ? ? 24,781 ? 24,781 assets andliabilitiesContribution (23,720 ) ? ? ? (23,720 ) to parentBalances - $ ? 38,863,389 $ (39,255 ) $ 2,141 $ (37,114 ) June 30, 2019 Balances -January 1, $ ? 38,863,389 $ (38,342 ) $ 2,146 $ (36,196 ) 2020Net income ? ? 6,480 132 6,612 Issuance ofrestricted ? 81,000 ? ? ? unitsForfeiture ofrestricted ? (84,134 ) ? ? ? unitsCash ? ? (4,825 ) (98 ) (4,923 ) distributionsUnit-based ? ? 709 ? 709 compensationPurchase oftreasury ? (7,748 ) (9 ) ? (9 ) unitsBalances - $ ? 38,852,507 $ (35,987 ) $ 2,180 $ (33,807 ) June 30, 2020

MARTIN MIDSTREAM PARTNERS L.P.CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS(Dollars in thousands)

Six Months Ended June 30, 2020 2019Cash flows from operating activities: Net income (loss) $ 6,612 $ (194,838 ) Less: Loss from discontinued operations, net of ? 179,466 income taxesNet income (loss) from continuing operations 6,612 (15,372 ) Adjustments to reconcile net loss to net cash provided by operating activities:Depreciation and amortization 30,582 29,988 Amortization and write-off of deferred debt 991 2,478 issuance costsAmortization of premium on notes payable (153 ) (153 ) Deferred income tax expense 1,018 856 Loss on sale of property, plant and equipment, 175 2,353 netGain on retirement of senior unsecured notes (3,484 ) ? Derivative (income) loss (1,463 ) 2,322 Net cash paid for commodity derivatives 796 (249 ) Unit-based compensation 709 715 Change in current assets and liabilities,excluding effects of acquisitions and dispositions:Accounts and other receivables 37,180 28,073 Product exchange receivables ? 59 Inventories (3,128 ) 3,044 Due from affiliates (1,060 ) (15,947 ) Other current assets (5,547 ) (3,061 ) Trade and other accounts payable (16,502 ) (2,800 ) Product exchange payables 811 (4,386 ) Due to affiliates (1,026 ) 428 Income taxes payable 26 131 Other accrued liabilities (2,452 ) (3,043 ) Change in other non-current assets and 541 (693 ) liabilitiesNet cash provided by continuing operating 44,626 24,743 activitiesNet cash provided by discontinued operating ? 7,770 activitiesNet cash provided by operating activities 44,626 32,513 Cash flows from investing activities: Payments for property, plant and equipment (19,053 ) (14,102 ) Acquisitions ? (23,720 ) Payments for plant turnaround costs (231 ) (4,742 ) Proceeds from involuntary conversion of property, 1,768 ? plant and equipmentProceeds from sale of property, plant and 4,369 659 equipmentNet cash used in continuing investing activities (13,147 ) (41,905 ) Net cash provided by discontinued investing ? 209,155 activitiesNet cash provided by (used in) investing (13,147 ) 167,250 activities Cash flows from financing activities: Payments of long-term debt and finance lease (160,082 ) (362,672 ) obligationsProceeds from long-term debt 131,000 298,000 Proceeds from issuance of common units, net of ? (259 ) issuance related costsPurchase of treasury units (9 ) (392 ) Payment of debt issuance costs (269 ) (386 ) Excess purchase price over carrying value of ? (102,393 ) acquired assetsCash distributions paid (4,923 ) (29,440 ) Net cash used in financing activities (34,283 ) (197,542 ) Net increase (decrease) in cash (2,804 ) 2,221 Cash at beginning of period 2,856 300 Cash at end of period $ 52 $ 2,521 Non-cash additions to property, plant and $ 1,276 $ 2,248 equipment

MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars and volumes in thousands, except BBL per day)

Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended June30, 2020 and 2019

Three Months Ended Percent June 30, Variance Change 2020 2019 (In thousands, except BBL per day) Revenues: Services $ 21,436 $ 22,966 $ (1,530 ) (7 ) %Products 25,540 31,385 (5,845 ) (19 ) %Total revenues 46,976 54,351 (7,375 ) (14 ) % Cost of products sold 22,697 27,497 (4,800 ) (17 ) %Operating expenses 12,254 13,257 (1,003 ) (8 ) %Selling, general and 1,398 1,378 20 1 %administrative expensesDepreciation and 7,272 7,826 (554 ) (7 ) %amortization 3,355 4,393 (1,038 ) (24 ) %Other operating income (3 ) 7 (10 ) (143 ) %(loss), netOperating income $ 3,352 $ 4,400 $ (1,048 ) (24 ) % Shore-based throughputvolumes (guaranteed 20,000 20,000 ? ? %minimum) (gallons)Smackover refinerythroughput volumes 6,500 6,500 ? ? %(guaranteed minimum BBL perday)

Comparative Results of Operations for the Six Months Ended June 30, 2020 and 2019

Six Months Ended June Percent 30, Variance Change 2020 2019 (In thousands, except BBL per day) Revenues: Services $ 43,603 $ 47,766 $ (4,163 ) (9 ) %Products 54,507 62,477 (7,970 ) (13 ) %Total revenues 98,110 110,243 (12,133 ) (11 ) % Cost of products sold 47,685 55,774 (8,089 ) (15 ) %Operating expenses 25,205 26,610 (1,405 ) (5 ) %Selling, general and 3,057 2,727 330 12 %administrative expensesDepreciation and 14,728 15,663 (935 ) (6 ) %amortization 7,435 9,469 (2,034 ) (21 ) %Other operating income (3,054 ) 17 (3,071 ) (18,065 ) %(loss), netOperating income $ 4,381 $ 9,486 $ (5,105 ) (54 ) % Shore-based throughputvolumes (guaranteed 40,000 40,000 ? ? %minimum) (gallons)Smackover refinerythroughput volumes 6,500 6,500 ? ? %(guaranteed minimum)(BBL per day)

MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars and volumes in thousands, except BBL per day)

Transportation Segment

Comparative Results of Operations for the Three Months Ended June30, 2020 and 2019

Three Months Ended Percent June 30, Variance Change 2020 2019 (In thousands) Revenues $ 35,259 $ 47,233 $ (11,974 ) (25 ) %Operating expenses 28,331 36,512 (8,181 ) (22 ) %Selling, generaland administrative 2,058 1,980 78 4 %expensesDepreciation and 4,328 3,778 550 15 %amortization 542 4,963 (4,421 ) (89 ) %Other operating 13 (1,649 ) 1,662 101 %income (loss), netOperating income $ 555 $ 3,314 $ (2,759 ) (83 ) %

Comparative Results of Operations for the Six Months Ended June 30, 2020 and 2019

Six Months Ended Percent June 30, Variance Change 2020 2019 (In thousands) Revenues $ 80,433 $ 92,419 $ (11,986 ) (13 ) %Operating 63,493 71,777 (8,284 ) (12 ) %expensesSelling,general and 4,193 4,065 128 3 %administrativeexpensesDepreciationand 8,608 7,348 1,260 17 %amortization $ 4,139 $ 9,229 $ (5,090 ) (55 ) %Other operating (1,195 ) (2,385 ) 1,190 50 %loss, netOperating $ 2,944 $ 6,844 $ (3,900 ) (57 ) %income

MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars and volumes in thousands, except BBL per day)

Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended June30, 2020 and 2019

Three Months Ended Percent June 30, Variance Change 2020 2019 (In thousands) Revenues: Services $ 2,914 $ 2,858 $ 56 2 %Products 30,506 32,998 (2,492 ) (8 ) %Total revenues 33,420 35,856 (2,436 ) (7 ) % Cost of products sold 18,601 23,676 (5,075 ) (21 ) %Operating expenses 3,142 2,789 353 13 %Selling, general andadministrative 1,166 1,251 (85 ) (7 ) %expensesDepreciation and 3,131 2,854 277 10 %amortization 7,380 5,286 2,094 40 %Other operating income 5 (1 ) 6 600 %(loss), netOperating income $ 7,385 $ 5,285 $ 2,100 40 % Sulfur (long tons) 166 182 (16 ) (9 ) %Fertilizer (long tons) 91 88 3 3 %Total sulfur services 257 270 (13 ) (5 ) %volumes (long tons)

Comparative Results of Operations for the Six Months Ended June 30, 2020 and 2019

Six Months Ended June Percent 30, Variance Change 2020 2019 (In thousands) Revenues: Services $ 5,829 $ 5,717 $ 112 2 %Products 55,927 61,732 (5,805 ) (9 ) %Total revenues 61,756 67,449 (5,693 ) (8 ) % Cost of products 35,405 45,242 (9,837 ) (22 ) %soldOperating 6,052 4,952 1,100 22 %expensesSelling, generaland 2,369 2,429 (60 ) (2 ) %administrativeexpensesDepreciation and 6,025 5,722 303 5 %amortization 11,905 9,104 2,801 31 %Other operatingincome (loss), 6,776 (1 ) 6,777 677,700 %netOperating income $ 18,681 $ 9,103 $ 9,578 105 % Sulfur (long 349 291 58 20 %tons)Fertilizer (long 165 155 10 6 %tons)Total sulfurservices volumes 514 446 68 15 %(long tons)

MARTIN MIDSTREAM PARTNERS L.P.SEGMENT OPERATING INCOME(Dollars and volumes in thousands, except BBL per day)

Natural Gas Liquids Segment

Comparative Results of Operations for the Three Months Ended June30, 2020 and 2019

Three Months Ended Percent June 30, Variance Change 2020 2019 (In thousands) Products Revenues $ 30,300 $ 57,398 $ (27,098 ) (47 ) %Cost of products sold 26,579 57,392 (30,813 ) (54 ) %Operating expenses 1,150 1,680 (530 ) (32 ) %Selling, general and 930 1,097 (167 ) (15 ) %administrative expensesDepreciation and amortization 612 629 (17 ) (3 ) % 1,029 (3,400 ) 4,429 130 %Other operating income (loss), ? 10 (10 ) (100 ) %netOperating income (loss) $ 1,029 $ (3,390 ) $ 4,419 130 % NGL sales volumes (Bbls) 1,698 1,457 241 17 %

Comparative Results of Operations for the Six Months Ended June 30, 2020 and 2019

Six Months Ended June Percent 30, Variance Change 2020 2019 (In thousands) Products $ 112,515 $ 173,872 $ (61,357 ) (35 ) %RevenuesCost of 100,839 168,701 (67,862 ) (40 ) %products soldOperating 2,089 3,386 (1,297 ) (38 ) %expensesSelling,general and 2,077 2,197 (120 ) (5 ) %administrativeexpensesDepreciationand 1,221 1,255 (34 ) (3 ) %amortization 6,289 (1,667 ) 7,956 477 %Otheroperating (2 ) 16 (18 ) (113 ) %income (loss),netOperating $ 6,287 $ (1,651 ) $ 7,938 481 %income (loss) NGL sales 4,143 4,364 (221 ) (5 ) %volumes (Bbls)

Unallocated Selling, General and Administrative Expenses

Comparative Results of Operations for the Three and Six Months Ended June 30, 2020 and 2019

Three Months Ended Percent Six Months Ended Percent June 30, Variance Change June 30, Variance Change 2020 2019 2020 2019 (In thousands) (In thousands) Unallocatedselling,general and $ 4,361 $ 4,599 $ (238 ) (5 ) % $ 8,733 $ 9,166 $ (433 ) (5 ) %administrativeexpenses

Non-GAAP Financial Measures

The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2020 and 2019.

Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow

Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands) (in thousands)Net income (loss) $ (2,203 ) $ (191,182 ) $ 6,612 $ (194,838 ) Less: Loss fromdiscontinued ? 180,568 ? 179,466 operations, netof income taxesIncome (loss)from continuing (2,203 ) (10,614 ) 6,612 (15,372 ) operationsAdjustments: Interest expense, 9,377 14,986 19,302 28,657 netIncome tax 790 639 1,137 1,335 expenseDepreciation and 15,343 15,087 30,582 29,988 amortizationEBITDA fromContinuing 23,307 20,098 57,633 44,608 OperationsAdjustments: (Gain) loss onsale of property, (15 ) 1,633 175 2,353 plant andequipment, netUnrealizedmark-to-market on ? 2,220 (669 ) 2,073 commodityderivativesTransaction costsassociated with ? 40 ? 224 acquisitionsNon-cashinsurance related 250 500 250 500 accrualsLower of cost ormarket ? 303 335 303 adjustmentsGain onrepurchase of ? ? (3,484 ) ? senior unsecurednotesUnit-based 363 363 709 715 compensationAdjusted EBITDAfrom Continuing 23,905 25,157 54,949 50,776 OperationsAdjustments: Interest expense, (9,377 ) (14,986 ) (19,302 ) (28,657 ) netIncome tax (790 ) (639 ) (1,137 ) (1,335 ) expenseAmortization of (76 ) (76 ) (153 ) (153 ) debt premiumAmortization ofdeferred debt 499 1,583 991 2,478 issuance costsDeferred income 732 487 1,018 856 tax expensePayments forplant turnaround (81 ) (915 ) (231 ) (4,742 ) costsMaintenancecapital (2,280 ) (2,628 ) (5,306 ) (6,487 ) expendituresDistributableCash Flow from $ 12,532 $ 7,983 $ 30,829 $ 12,736 ContinuingOperations Loss fromdiscontinued $ ? $ (180,568 ) $ ? $ (179,466 ) operations, netof income taxesAdjustments: Depreciation and ? 4,080 ? 8,161 amortizationEBITDA fromDiscontinued ? (176,488 ) ? (171,305 ) OperationsLoss on sale ofproperty, plant ? 178,781 ? 178,781 and equipment,netNon-cashinsurance related ? 3,213 ? 3,213 accrualsEBITDA andAdjusted EBITDA ? 5,506 ? 10,689 from DiscontinuedOperationsMaintenancecapital ? (576 ) ? (912 ) expendituresDistributableCash Flow from $ ? $ 4,930 $ ? $ 9,777 DiscontinuedOperations