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Profile: Martin Midstream Partners LP (MMLP.OQ)

MMLP.OQ on NASDAQ Stock Exchange Global Select Market

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26 May 2017
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Martin Midstream Partners L.P., incorporated on June 21, 2002, is a limited partnership with a set of operations focused in the United States Gulf Coast region. The Company's four business lines include terminalling and storage services for petroleum products and by-products, including the refining of naphthenic crude oil and the blending and packaging of finished lubricants; natural gas services, including liquids transportation and distribution services, and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution, and marine transportation services for petroleum products and by-products. The petroleum products and by-products that the Company collects, transports, stores and markets are produced by oil and gas companies. The Company's customers include oil and gas companies, independent refiners, chemical companies, fertilizer manufacturers and other wholesale purchasers.

Terminalling and Storage

As of December 31, 2016, the Company owned or operated 26 marine shore-based terminal facilities and 14 specialty terminal facilities located in the United States Gulf Coast region that provide storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products, including the refining of naphthenic crude oil and the blending and packaging of various grades and quantities of industrial, commercial, and automotive lubricants and greases. The Company's facilities and resources enable it to handle various products that require specialized treatment, such as molten sulfur and asphalt. It also provides land rental to oil and gas companies along with storage and handling services for lubricants and fuels. It provides these terminaling and storage services on a fee basis under long-term contracts.

At the Company's terminals, such as Tampa terminal, Stanolind terminal and Neches terminal, its customers are oil refining companies. Its terminal at Houston, Texas is used for lubricant blending, storage, packaging and distribution. This terminal is used as the Company's central hub for bulk lubricant distribution where it receives, packages and ships lubricants to its terminals or directly to customers. The Company owns a refinery and terminal in Smackover, Arkansas, where it processes crude oil into finished products that include naphthenic lubricants, distillates, asphalt and other intermediates. It also owns and operates a terminal in Smackover, Arkansas, which is used for lubricant blending, processing, packaging, marketing and distribution. This terminal is used as its central hub for branded and private label packaged lubricants where it receives, packages and ships heavy-duty, passenger car and industrial lubricants to a network of retailers and distributors.

The Company owns asphalt terminals in South Houston, Port Neches, Omaha at Texas, and also operates a sulfuric acid terminal in Elko, Nevada. In Beaumont, Texas the Company owns Spindletop Terminal where it receives natural gasoline via pipeline and then ships the product to its customers via other pipelines to which the facility is connected. It also owns a lubricant terminal in Jennings, Louisiana. Its marine shore-based terminals are located along the Gulf Coast from Theodore, Alabama to Port O'Connor, Texas. These terminals are used to distribute and market fuel and lubricants. Its marine shore-based terminals comprise two classes of terminals: full service terminals, and fuel and lubricant terminals. As of December 31, 2016, it operated 10 terminals. These facilities provide logistical support services and storage and handling services for fuel and lubricants. The Company's terminals include Amelia 2, Fourchon 15, Pelican Island and Theodore. These terminals are located in the Gulf Coast region and provide storage and handling services for lubricants and fuel oil. Its fuel and lubricant terminals include Pascagoula, Port Arthur, River Ridge and Lake Charles T.

Natural Gas Services

The Company distributes natural gas liquids (NGLs), which include ethane, propane, normal butane, iso butane and natural gasoline. It purchases NGLs from refineries and natural gas processors. It stores and transports NGLs for wholesale deliveries to refineries, industrial NGL users in Texas and the Southeastern United States, and propane retailers. It transports NGLs using Martin Resource Management's land transportation fleet or by contracting with common carriers, owner-operators and railroad tank cars. The Company's owned and leased NGL facilities are wholesale terminals, retail terminals and rail terminals. As of December 31, 2016, it owned a NGL pipeline, which spanned approximately 200 miles from Kilgore, Texas to Beaumont, Texas. The Company owned approximately 2.4 million barrels of underground storage capacity for NGLs, as of December 31, 2016. Its NGL customers include refiners, industrial processors and retail propane distributors. It is focused on the development, construction, operation and management of natural gas storage facilities across northern Louisiana and Mississippi.

Sulfur Services

The Company develops an integrated system of transportation assets and facilities relating to sulfur services. It processes and distributes sulfur produced by the oil refineries located in the United States Gulf Coast region. It buys and sells molten sulfur on contracts that are tied to sulfur indices and tend to provide stable margins. The sulfur the Company processes and handles is used in the production of fertilizers and industrial chemicals. As of December 31, 2016, it owned and operated five sulfur-based fertilizer production plants and one emulsified sulfur blending plant that manufactures sulfur-based fertilizer products for wholesale distributors and industrial users. These plants are located in Texas and Illinois. The Company transports its sulfur by inland and offshore barges, railcars and trucks. It provides barge transportation and tank storage services to its producers and consumers of sulfur under contracts with remaining terms from one to five years in duration.

The Company processes molten sulfur into prilled or pelletized sulfur at its facilities in Port of Stockton, California and Beaumont, Texas on contracts. Its Stockton facility, equipped with one wet prill unit processed 1,000 metric tons of molten sulfur per day, as of December 31, 2016. Its Beaumont facility, equipped with two wet prill units and one granulation unit processed a combined 5,500 metric tons of molten sulfur per day, as of December 31, 2016. Its sulfuric acid production facility at its Plainview, Texas location processes molten sulfur to produce a supply of raw material sulfuric acid to its ammonium sulfate production plant. As of December 31, 2016, its ammonium sulfate plant produced approximately 400 tons per day of ammonium sulfate. The sulfuric acid produced and not consumed by the ammonium sulfate production is sold to Martin Resource Management, which markets the excess production to third parties.

The Company's sulfur-based fertilizer and related sulfur products include plant nutrient sulfur products, ammonium sulfate products, industrial sulfur products and liquid sulfur products. It produces plant nutrient and agricultural ground sulfur products at its facilities in Odessa, Texas, Seneca, Illinois and Cactus, Texas. The plant nutrient sulfur product is a 90% degradable sulfur product marketed under the Disper-Sul trade name and sold throughout the United States. It produces various grades of ammonium sulfate, including granular, coarse, standard and 40% ammonium sulfate solution. It produces industrial sulfur products, such as elemental pastille sulfur, industrial ground sulfur products and emulsified sulfur. It produces elemental pastille sulfur at its Odessa, Texas and Seneca, Illinois facilities. The Company produces ammonium thiosulfate at its Neches terminal facility in Beaumont, Texas. This agricultural sulfur product is a clear liquid containing 12% nitrogen and 26% sulfur. As of December 31, 2016, the Company owned 35 railcars and leased 94 railcars equipped to transport molten sulfur.

Marine Transportation

As of December 31, 2016, the Company operated a fleet of 35 inland marine tank barges, 19 inland push boats and one offshore tug and barge unit that transport petroleum products and by-products in the United States Gulf Coast region. Its fleet contains various vessels that reflect its focus on specialty products. Its marine transportation business operates coastwise along the Gulf of Mexico and East Coast and on the United States inland waterway system, between domestic ports along the Gulf of Mexico, Intracoastal Waterway, the Mississippi River system and the Tennessee-Tombigbee Waterway system. It transports asphalt, fuel oil, gasoline, sulfur and other bulk liquids. It provides its transportation services on a fee basis under annual contracts.

Company Address

Martin Midstream Partners LP

4200 Stone Rd
KILGORE   TX   75662-6935
P: +1903.9836252
F: +1903.9836262

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