Profile: Martin Midstream Partners LP (MMLP.OQ)
16 Apr 2014
Martin Midstream Partners L.P. incorporated on June 21, 2002, is a limited partnership with a diverse set of operations focused in the United States Gulf Coast region. The Company’s four primary business lines include terminalling and storage services for petroleum products and by-products; natural gas services; sulfur and sulfur-based products gathering, processing, manufacturing, marketing and distribution, and marine transportation services for petroleum products and by-products. The Company operates through four business segments: Terminalling and Storage, Natural Gas Services, Sulfur Services and Marine Transportation. As of December 31, 2012, Martin Resource Management owned an approximate 19.2%% limited partnership units in the Company. Furthermore, it owns and controls the Company's general partner, which owns a 2% general partner interest and incentive distribution rights in the Company. On October 2, 2012, it purchased certain specialty lubricant product packaging assets (Blending and Packaging Assets) from Cross Oil Refining & Marketing, Inc. (Cross), a wholly-owned subsidiary of the Parent. On December 31, 2012, the Company acquired Talen's Marine & Fuel, LLC.
Terminalling and Storage
As of December 31, 2012, the Company owned or operated 31 marine shore based terminal facilities and 16 specialty terminal facilities located in the United States Gulf Coast region that provide storage, processing and handling services for producers and suppliers of petroleum products and by-products, lubricants and other liquids, including the refining of various grades and quantities of naphthenic lubricants and related products. It also provides land rental to oil and gas companies along with storage and handling services for lubricants and fuel oil. The Company provides these terminalling and storage services on a fee basis primarily under long-term contracts. Martin Midstream Partners L.P. generates revenues from its terminals that have shore bases by fees that it charges its customers under land rental contracts for the use of its terminal facility for these shore bases. It also generates revenues through the distribution and marketing of lubricants.
The Company’s 31 marine shore based terminals are divided generally into two classes of terminals: full-service terminals, and fuel and lubricant terminals. As of December 31, 2012, it owned or operated 12 full-service terminals. These terminal facilities provide logistical support services, and provide storage and handling services for fuel oil and lubricants. The significant difference between the Company’s full-service terminals and its fuel and lubricant terminals is that its full-service terminals generate additional revenues by providing shore bases to support its customer’s operating activities related to the offshore exploration and production industry. As of December 31, 2012, the Company owned or operated 19 lubricant and fuel oil terminals located in the Gulf Coast region that provide storage and handling services for lubricants and fuel oil. As of December 31, 2012, it owned or operated 16 terminal facilities providing storage and handling services for some or all of the products, such as anhydrous ammonia, asphalt, sulfur, sulfuric acid, fuel oil, crude oil and other petroleum products and by-products. Its specialty terminals have an aggregate storage capacity of approximately 2.9 million barrels.
Natural Gas Services Segment
The Company distributes natural gas liquids or, (NGLs). It purchases NGLs primarily from natural gas processors. NGLs include ethane, propane, normal butane, iso butane and natural gasoline. The Company stores NGLs in its supply and storage facilities for resale to propane retailers, refineries and industrial NGL users in Texas and the Southeastern United States. It owns an NGL pipeline, which spans approximately 200 miles running from Kilgore to Beaumont, Texas. It owns three NGL supply and storage facilities with an aggregate above ground storage capacity of approximately 3,000 barrels, and it leases approximately 2.7 million barrels of underground storage capacity for NGLs.
Sulfur Services Segment
The Company processes and distributes sulfur predominately produced by oil refineries primarily located in the United States Gulf Coast region. The Company handles molten sulfur on contracts that are tied to sulfur indices and tend to provide stable margins. It processes molten sulfur into prilled, or pelletized, sulfur on take or pay fee contracts at its facilities in Port of Stockton, California and Beaumont, Texas. The Company owns and operates six sulfur-based fertilizer production plants and one emulsified sulfur blending plant that manufacture primarily sulfur-based fertilizer products for wholesale distributors and industrial users. These plants are located in Illinois, Texas and Utah. The Company owns and operates a sulfuric acid production plant in Plainview, Texas. The Company gathers molten sulfur from refiners, primarily located on the Gulf Coast, and from natural gas processing plants, primarily located in the southwestern United States. The two Beaumont prillers have the capacity to process approximately 5,500 metric tons of molten sulfur per day. The Company processes molten sulfur into formed sulfur on take-or-pay fee contracts, providing refiners export market for the sale of their residual sulfur.
The Company manufactures and markets sulfur-based fertilizer and related sulfur products. It produces plant nutrient and agricultural ground sulfur products at its two facilities in Odessa, Texas. It also produces plant nutrient sulfur at its facility in Seneca, Illinois. It produces various grades of ammonium sulfate, including coarse and standard grades, a 40% ammonium sulfate solution and a food-grade material. It produces industrial sulfur products, such as elemental pastille sulfur, industrial ground sulfur products, and emulsified sulfur. The Company produces ammonium thiosulfate at its Neches terminal location in Beaumont, Texas. This agricultural sulfur product is a clear liquid containing 12% nitrogen and 26% sulfur.
Marine Transportation Segment
The Company owns a fleet of inland and offshore tows that provide marine transportation of petroleum products and by-products produced in oil refining and natural gas processing. Its marine transportation system operates coastwise along the Gulf of Mexico and on the United States inland waterway system, primarily between domestic ports along the Gulf of Mexico Intracoastal Waterway, the Mississippi River system and the Tennessee-Tombigbee Waterway system. Its inland tows generally consist of one push boat and 1 to 3 tank barges, depending upon the horsepower of the push boat, the river or canal capacity and conditions, and customer requirements. Each of its offshore tows consist of one tugboat, with much greater horsepower than an inland push boat, and one large tank barge.
Martin Midstream Partners L.P. transports asphalt, fuel oil, gasoline, sulfur and other bulk liquids. As of December 31, 2012, the Company owned a fleet of 54 inland marine tank barges, 29 inland push boats and four offshore tug barge units that transport petroleum products and by-products primarily in the United States Gulf Coast region. It provides these transportation services on a fee basis primarily under annual contracts.
Martin Midstream Partners LP
4200 STONE ROAD
KILGORE TX 75662