MMLP

Management Statement and Operational Highlights

• Hurricane Milton Impact: Martin team members in Tampa and Mulberry were safe; Tampa terminal had tank farm and pump damage, Mulberry trucking terminal had minor damage. CapEx of $0.5-$1 million needed for repairs in Q4 and Q1.
• Third Quarter Performance: Fell short of guidance by $1.3 million due to increased long-term incentive plan expenses. Transportation was largest cash flow generator; Terminalling and Storage stable; Specialty Products hit by weak demand; Sulfur Services outperformed on sulfur volume.
• ELSA JV Update: ELSA plant expected to start taking feedstock from Martin in October; sales program delayed, likely muted in 2025; reservation fee starts October 1.
• Capital Expenditures: Third quarter CapEx $12.5 million; full-year 2024 CapEx revised to $57.4 million (down from $58.4 million), with maintenance CapEx $34.8 million and expansion CapEx $22.6 million.

Guidance

• Full-year 2024 adjusted EBITDA guidance maintained at $116.1 million.
• Slightly adjusted forecast for Q4 marine and sulfur services divisions.
• Full-year 2024 capital expenditures revised to $57.4 million, with maintenance CapEx $34.8 million and expansion CapEx $22.6 million.

Segment Performance

• Transportation segment: Adjusted EBITDA of $11.6 million compared to guidance of $10.8 million. Land transportation had adjusted EBITDA of $6.5 million (in line with guidance), marine transportation had $5.1 million (exceeding guidance of $4.4 million) with average inland day rate 8% above forecast.
• Terminalling and Storage segment: Adjusted EBITDA of $8.4 million vs. guidance of $9 million. The shortfall was due to increased incentive compensation expense of $0.6 million. Expected stability in Q4.
• Specialty Products segment: Adjusted EBITDA of $4.6 million vs. guidance of $6.5 million, missing by $1.9 million (excluding $0.3 million incentive expense). Weak demand for packaged lubricant and grease due to slowing U.S. economy; softer cash flow expected in Q4.
• Sulfur Services segment: Adjusted EBITDA of $4.2 million vs. guidance of $3.7 million. Pure sulfur side had $3.7 million (exceeding guidance of $3.1 million) due to strong sulfur production volume from Gulf Coast refineries. Expected positive performance in Q4 barring refinery turnarounds.

Risks

• Hurricane Milton caused damage to Tampa terminal and pumps, requiring CapEx for repairs.
• ELSA sales program delayed, potentially impacting revenue projections for 2025.
• Weaker U.S. economy negatively affecting demand for Specialty Products' lubricant and grease products.
• Seasonal reduced demand for lubricant and grease products in Q4.

Question and Answer

Q: Hi, guys. This is Tim on for Selman. Just wanted to see if Hurricane Milton will have implications for remainder of the year as far as cash flow from those assets and potential capital allocation for repairs?

A: Randy Tauscher - Tampa terminal has $0.5 million to $1 million CapEx outlay in Q4 and Q1 for repairs; no major commercial impact.

Q: Jumping over to ELSA, any updates?

A: Randy Tauscher - ELSA plant expected to take feedstock in October; sales program delayed, sales in 2025 likely muted; Bob Bondurant - Reservation fee starts October 1 but actual sales to customers muted for a while.

Q: Turning to barge business, rates and contracting?

A: Bob Bondurant - Heated rates $11,000-$11,500/day (up $2,000 from a year ago), clean rates $9,600-$9,800/day (stable); 50% of tows locked into 2025, 20% rates being negotiated, rest on spot.

Q: Preliminary thoughts on capital spend in 2025?

A: Randy Tauscher - Growth capital less significant than 2024; maintenance CapEx not yet budgeted but expect lower than 2024.

Q: ELSA project outlook, $6M annual run rate?

A: Randy Tauscher - Reservation fee starts October 1, but sales to customers muted; reliance on Samsung for 2025 projections.

Q: Guidance implies borrowings on revolver at year end?

A: Sharon Taylor - End of year borrowings expected between $55M-$60M.

Q: Financing impact on MMLP post-acquisition?

A: Sharon Taylor - MMLP's capital structure unchanged; no borrowing at MMLP level for acquisition; MRMC will receive distributions post-acquisition subject to credit facility and note indenture constraints.