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Beaumont LHG Project Review April 2, 2013 NASDAQ: MMLP www.martinmidstream.com Confidential.

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Presentation on theme: "Beaumont LHG Project Review April 2, 2013 NASDAQ: MMLP www.martinmidstream.com Confidential."— Presentation transcript:

1 Beaumont LHG Project Review April 2, 2013 NASDAQ: MMLP www.martinmidstream.com Confidential

2 M ARTIN R ESOURCE M ANAGEMENT C ORPORATION Confidential

3 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 Approximately 2,600 employees In addition to owning the general partner of MMLP, MRMC operating entities represent revenue in excess of $2.0B Approximately 70% employee owned 3 Confidential

4 M ARTIN M IDSTREAM P ARTNERS L.P. Confidential

5 Martin Midstream Partners L.P. NASDAQ Listed: MMLP Formed October 31, 2002 MMLP is a publicly traded, diversified master limited partnership with operations including: Terminalling & Storage Natural Gas Services Sulfur Services Marine Transportation MMLP Trading Summary (1) Unit Price:$38.41 Units Outstanding26.6 million Market Cap:$1.02 billion Quarterly Distribution:$0.77 Current Yield:8.2% (1) As of March 28, 2013 MARTIN MIDSTREAM PARTNERS L.P. (MMLP) OVERVIEW 5 Confidential

6 Martin Midstream Partners L.P. PARTNERSHIP SNAPSHOT ~13% Marine Transportation ~14% Natural Gas Services ~34% Sulfur Services ~39% Terminalling & Storage 6 Leading Midstream Company With Four Diversified Business Segments (NASDAQ: MMLP) Formed on October 31, 2002 Market Capitalization:$1.02 Billion Pro Forma FYE 2012 Adjusted EBITDA:$137.4 Million Note: Percentages above represent approximate 2012 EBITDA contribution, and market capitalization as of market close on March 18, 2013 Confidential

7 Martin Midstream Partners L.P. 7 Strategic operations across 48 locations in 10 states primarily in the Gulf Coast Region - Favorable proximity to major refining regions of the U.S. - Coast-to-coast integrated sulfur infrastructure, including access to export markets - Marine service terminals providing broad geographic coverage and distribution capabilities ATTRACTIVE OPERATING FOOTPRINT Confidential

8 Martin Midstream Partners L.P. Integrated yet complementary business segments, scale and brand recognition make MMLP a premier supplier of products and services 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 HIGH QUALITY CUSTOMER BASE 8 Confidential

9 Martin Midstream Partners L.P. MARINE TRANSPORTATION

10 Martin Resource Management Corporation MMLP’s Marine Transportation segment includes the following key assets 60 inland marine tank barges 25 inland push-boats 5 offshore tug barge units Market Drivers Equipment Supply vs. Demand Economic Activity Refinery Utilization & Crack Spreads Equipment Retirement vs. New Floating Storage Contract mix reflects Major Oil Companies International Trading Companies Martin Family of Companies SEGMENT OVERVIEW – MARINE TRANSPORTATION 10

11 M ARTIN M IDSTREAM P ARTNERS L.P. BEAUMONT LHG PROJECT Confidential

12 Martin Midstream Partners L.P. MARTIN STANOLIND TERMINAL LOCATION 12 Confidential Martin Stanolind Terminal

13 Martin Midstream Partners L.P. STANOLIND TERMINAL – General Information 13 Confidential 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)

14 Martin Midstream Partners L.P. STANOLIND TERMINAL - Navigation 14 Confidential 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

15 Martin Midstream Partners L.P. STANOLIND TERMINAL – Proposed Operations 15 Confidential 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 m 3 capacity Navigational Restrictions None; all tankers within limits placed by Pilots

16 Martin Midstream Partners L.P. STANOLIND TERMINAL – Tanker Specifications 16 Confidential Typical 6,000 m 3 Tanker Typical 16,000 m 3 Tanker

17 Martin Midstream Partners L.P. STANOLIND TERMINAL – Barge Tow Specifications 17 Confidential Typical Three Tank LHG Inland Barge Typical Two Tank LHG Inland Barge

18 Martin Midstream Partners L.P. STANOLIND TERMINAL – Operational Overview 18 Confidential 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

19 Martin Midstream Partners L.P. STANOLIND TERMINAL – Transfer Operation Schematic 19 Confidential

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