• Execution of Strategic Initiatives Continues with Sale of East Texas Pipeline
  
• Quarterly Distribution Coverage Ratio Above Internal Forecast
• Update on Structure Damage at Neches Terminal

KILGORE, Texas, Oct. 23, 2019 (GLOBE NEWSWIRE) -- Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the third quarter of 2019.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, "The sale of the East Texas Pipeline in the third quarter was the latest action in our strategic initiative plan designed to strengthen the balance sheet by reducing leverage.  The transaction closed on August 12, 2019 for net proceeds of $17.5 million which were used to reduce borrowings under our revolving credit facility.

"Highlighting the third quarter, which annually is our weakest due to seasonal troughs in the fertilizer and butane businesses, was the Natural Gas Liquids and Terminalling and Storage segments, as early season butane sales were above expectations and the lubricants business outperformed guidance as a result of increased margins.  This was offset by the Transportation and Sulfur Services segments as ongoing turnarounds and unplanned maintenance related to third party refineries continue to negatively impact sulfur tank truck hauling, and fertilizer margins and sales volumes were depressed due to higher fertilizer inventories caused by the delay in fall fertilizer application as a result of the late harvest season.

"For the third quarter, the Partnership generated a distribution coverage ratio of 0.84 times, well above our internal forecast of 0.47 times.  Although cash flow from operations was below our guidance level, maintenance capital spending was lower than anticipated at approximately $2.8 million, offsetting the impact to distributable cash flow.  Accordingly, we are reducing our maintenance capital expenditure guidance to approximately $19.6 million for the full year 2019.

"In May 2019, we announced the service disruption and structural damage to the mobile ship-loader at our Neches facility.  The damage rendered the terminal unable to load prilled sulfur onto ocean-going vessels.   We are now estimating that the terminal will be fully operational by February 2020 and anticipate the negative cash flow impact will be relieved with proceeds from our property and business interruption insurance policies, which receipt is expected during fourth quarter 2019 and first quarter 2020.

"Finally, we are revising our fourth quarter guidance to address lower expectations in the Natural Gas Liquids and Transportation segments.  Regarding the butane optimization business, we expect a lower seasonal uplift in pricing due to higher than normal inventories, which may be relieved by recently commissioned export capacity.  And while we are experiencing an improved number of scheduled tank truck loads in the fourth quarter, extended third party refinery turnarounds continue to create headwinds in our land transportation business.  With these revisions we expect the Partnership to generate a distribution coverage ratio of 1.71 times in the fourth quarter of 2019."

The Partnership reported net income from continuing operations for the third quarter 2019 of $13.3 million, or $0.33 per limited partner unit.  The Partnership had a net loss from continuing operations for the third quarter 2018 of $7.9 million, a loss of $0.28 per limited partner unit.  The Partnership had a net loss from continuing operations for the nine months ended September 30, 2019 of $2.1 million, a loss of $0.05 per limited partner unit.  The Partnership had a net loss from continuing operations for the nine months ended September 30, 2018 of $9.4 million, a loss of $0.45 per limited partner unit.

Adjusted EBITDA from continuing operations for the third quarter of 2019 was $22.0 million compared to the third quarter of 2018 of $22.9 million.  Adjusted EBITDA from continuing operations for the nine months ended September 30, 2019 was $72.8 million compared to the nine months ended September 30, 2018 of $81.7 million.

Distributable cash flow from continuing operations for the third quarter of 2019 was $8.3 million compared to the third quarter of 2018 of $4.4 million.  Distributable cash flow from continuing operations for the nine months ended September 30, 2019 was $21.0 million compared to the nine months ended September 30, 2018 of $27.8 million.

The Partnership had net income from discontinued operations for the three months ended September 30, 2019 of $0.0 million, or $0.00 per limited partner unit.  The Partnership had net income from discontinued operations for the three months ended September 30, 2018 of $50.4 million, or $1.28 per limited partner unit.   The Partnership's income from discontinued operations for the three months ended September 30, 2018 includes a non-cash gain related to the disposition of its West Texas LPG Pipeline Limited Partnership interests of $48.6 million.  The Partnership had a net loss from discontinued operations for the nine months ended September 30, 2019 of $179.5 million, a loss of $4.55 per limited partner unit.  The Partnership's loss from discontinued operations for the nine months ended September 30, 2019 includes a non-cash charge related to the disposition of its natural gas storage assets of $178.8 million.  The Partnership had net income from discontinued operations for the nine months ended September 30, 2018 of $62.5 million, or $1.58 per limited partner unit.  The Partnership's income from discontinued operations for the nine months ended September 30, 2018 includes a non-cash gain related to the disposition of its West Texas LPG Pipeline Limited Partnership interests of $48.6 million.

Adjusted EBITDA from discontinued operations for the third quarter of 2019 was $0.0 million compared to the third quarter 2018 of $6.4 million.  Adjusted EBITDA from discontinued operations for the nine months ended September 30, 2019 was $10.7 million compared to the nine months ended September 30, 2018 of $28.2 million.

Distributable cash flow from discontinued operations for the third quarter of 2019 was $0.0 million compared to the third quarter of 2018 of $6.2 million.  Distributable cash flow from discontinued operations for the nine months ended September 30, 2019 was $9.8 million compared to the nine months ended September 30, 2018 of $26.7 million.

Revenues for the third quarter of 2019 were $177.9 million compared to the third quarter of 2018 of $234.0 million.  Revenues for the nine months ended September 30, 2019 were $605.3 million compared to the nine months ended September 30, 2018 of $752.9 million.

Distributable cash flow, distributable cash flow from discontinued operations, EBITDA, adjusted EBITDA, 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, 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.

Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three and nine months ended September 30, 2019 and certain prior periods.  These financial statements should be read in conjunction with the information contained in the Partnership's Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission on October 23, 2019.

An attachment accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/21e1a421-9e45-45d6-b8c8-334b37f520d9.

Investors' Conference Call

An investors conference call to review the third quarter results will be held on Thursday, October 24, 2019 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 6381517. 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 Partnership's 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 and other factors, many of which are outside the Partnership's 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 Partnership's 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, and Adjusted EBITDA from Discontinued Operations.  Certain items excluded from EBITDA, adjusted EBITDA, 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, 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, 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)

	September 30, 2019				December 31, 20181
	(Unaudited)				(Unaudited)
Assets
Cash	$	1,802			$	300
Accounts and other receivables, less allowance for doubtful accounts of $512 and $576, respectively	65,927				83,488
Product exchange receivables	2				166
Inventories (Note 6)	95,971				84,265
Due from affiliates	18,501				18,845
Fair value of derivatives (Note 11)	1,616				4
Other current assets	8,637				5,889
Assets held for sale (Note 4)	5,052				5,652
Current assets - Natural Gas Storage Assets (Note 4)	—				9,428
Total current assets	197,508				208,037
Property, plant and equipment, at cost	881,793				886,435
Accumulated depreciation	(459,822		)		(438,602		)
Property, plant and equipment, net	421,971				447,833
Goodwill	17,785				17,785
Right-of-use assets (Note 9)	25,691				—
Deferred income taxes, net (Note 19)	23,681				—
Other assets, net (Note 10)	4,495				4,584
Non current assets - Natural Gas Storage Assets (Note 4)	—				395,389
Total assets	$	691,131			$	1,073,628
Liabilities and Partners’ Capital
Current installments of finance lease obligations (Note 9)	$	5,975			$	5,409
Trade and other accounts payable	52,377				64,041
Product exchange payables	4,846				12,103
Due to affiliates	1,471				2,133
Income taxes payable	510				445
Other accrued liabilities (Note 10)	23,675				24,380
Current liabilities - Natural Gas Storage Assets (Note 4)	—				3,240
Total current liabilities	88,854				111,751
Long-term debt, net (Note 8 )	606,293				656,459
Finance lease obligations (Note 9)	2,906				6,272
Operating lease liabilities (Note 9)	17,606				—
Other long-term obligations	8,842				10,045
Non current liabilities - Natural Gas Storage Assets (Note 4)	—				669
Total liabilities	724,501				785,196
Commitments and contingencies (Note 16)
Partners’ capital (deficit) (Note 12)	(33,370		)		288,432
Total partners’ capital (deficit)	(33,370		)		288,432
Total liabilities and partners' capital	$	691,131			$	1,073,628

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 23, 2019.

¹ Financial information for 2018 has been revised to include results attributable to Martin Transport, Inc. ("MTI") acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

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

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2019				20181				2019				20181
Revenues:
Terminalling and storage *	$	21,193			$	24,332			$	65,674			$	72,447
Transportation *	40,211				39,013				119,327				110,578
Sulfur services	2,859				2,787				8,576				8,361
Product sales: *
Natural gas liquids	60,871				101,919				234,743				351,706
Sulfur services	20,213				27,981				81,945				98,565
Terminalling and storage	32,553				38,015				94,991				111,272
	113,637				167,915				411,679				561,543
Total revenues	177,900				234,047				605,256				752,929
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas liquids *	51,736				96,486				211,472				319,651
Sulfur services *	14,442				19,720				56,262				68,824
Terminalling and storage *	26,009				32,886				78,998				97,152
	92,187				149,092				346,732				485,627
Expenses:
Operating expenses *	51,071				55,200				156,499				160,941
Selling, general and administrative *	10,474				9,673				30,900				28,506
Depreciation and amortization	15,009				14,962				44,997				47,220
Total costs and expenses	168,741				228,927				579,128				722,294
Other operating income, net	16,302				311				13,949				113
Operating income	25,461				5,431				40,077				30,748
Other income (expense):
Interest expense, net	(11,973		)		(13,238		)		(40,630		)		(39,783		)
Other, net	(1		)		25				3				30
Total other expense	(11,974		)		(13,213		)		(40,627		)		(39,753		)
Net income (loss) before taxes	13,487				(7,782		)		(550		)		(9,005		)
Income tax expense	(237		)		(98		)		(1,572		)		(379		)
Income (loss) from continuing operations	13,250				(7,880		)		(2,122		)		(9,384		)
Income (loss) from discontinued operations, net of income taxes	—				50,443				(179,466		)		62,457
Net income (loss)	13,250				42,563				(181,588		)		53,073
Less general partner's interest in net (income) loss	(265		)		(789		)		3,632				(900		)
Less pre-acquisition (income) allocated to the general partner	—				(3,117		)		—				(8,055		)
Less income allocable to unvested restricted units	(72		)		(27		)		(5		)		(29		)
Limited partners' interest in net income (loss)	$	12,913			$	38,630			$	(177,961	)		$	44,089

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 23, 2019.

¹ Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

*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								Nine Months Ended
	September 30,								September 30,
	2019				20181				2019				20181
Revenues:*
Terminalling and storage	$	17,538			$	19,597			$	53,987			$	60,090
Transportation	6,442				7,089				17,941				20,848
Product Sales	122				149				829				1,150
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Sulfur services	2,620				2,694				8,078				8,034
Terminalling and storage	6,300				6,476				19,412				19,144
Expenses:
Operating expenses	21,745				20,889				66,409				67,735
Selling, general and administrative	8,358				5,032				24,148				19,650

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 23, 2019.

¹ Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

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

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2019				20181				2019				20181
Allocation of net income (loss) attributable to:
Limited partner interest:
Continuing operations	$	12,913			$	(10,846	)		$	(2,080	)		$	(17,275	)
Discontinued operations	—				49,476				(175,881		)		61,364
	$	12,913			$	38,630			$	(177,961	)		$	44,089
General partner interest:
Continuing operations	$	265			$	(146	)		$	(42	)		$	(159	)
Discontinued operations	—				935				(3,590		)		1,059
	$	265			$	789			$	(3,632	)		$	900
Net income (loss) per unit attributable to limited partners:
Basic:
Continuing operations	$	0.33			$	(0.28	)		$	(0.05	)		$	(0.45	)
Discontinued operations	—				1.28				(4.55		)		1.58
	$	0.33			$	1.00			$	(4.60	)		$	1.13
Weighted average limited partner units - basic	38,653				38,712				38,661				38,877
Diluted:
Continuing operations	$	0.33			$	(0.28	)		$	(0.05	)		$	(0.45	)
Discontinued operations	—				1.28				(4.55		)		1.58
	$	0.33			$	1.00			$	(4.60	)		$	1.13
Weighted average limited partner units - diluted	38,653				38,738				38,661				38,889

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 23, 2019.

¹ Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

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

					Partners’ Capital
	Parent Net				Common Limited							General Partner
	Investment1				Units			Amount				Amount				Total
Balances - January 1, 2018	$	24,240			38,444,612			$	290,927			$	7,314			$	322,481
Net income	8,055				—			44,118				900				53,073
Issuance of common units, net	—				—			(118		)		—				(118		)
Issuance of restricted units	—				633,425			—				—				—
Forfeiture of restricted units	—				(23,000	)		—				—				—
Cash distributions	—				—			(57,653		)		(1,176		)		(58,829		)
Deemed contribution to Martin Resource Management Corporation	(10,800		)		—			—				—				(10,800		)
Unit-based compensation	—				—			872				—				872
Purchase of treasury units	—				(18,800	)		(273		)		—				(273		)
Excess purchase price over carrying value of acquired assets	—				—			(26		)		—				(26		)
Balances - September 30, 2018	$	21,495			39,036,237			$	277,847			$	7,038			$	306,380
Balances - January 1, 2019	$	23,720			39,032,237			$	258,085			$	6,627			$	288,432
Net loss	—				—			(177,956		)		(3,632		)		(181,588		)
Issuance of common units, net of issuance related costs	—				—			(289		)		—				(289		)
Issuance of restricted units	—				16,944			—				—				—
Forfeiture of restricted units	—				(154,288	)		—				—				—
Cash distributions	—				—			(38,480		)		(785		)		(39,265		)
Unit-based compensation	—				—			1,064				—				1,064
Excess purchase price over carrying value of acquired assets	—				—			(102,393		)		—				(102,393		)
Deferred taxes on acquired assets and liabilities	—				—			24,781				—				24,781
Contribution to parent	(23,720		)		—			—				—				(23,720		)
Purchase of treasury units	—				(31,504	)		(392		)		—				(392		)
Balances - September 30, 2019	$	—			38,863,389			$	(35,580	)		$	2,210			$	(33,370	)

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 23, 2019.

¹ Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

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

	Nine Months Ended
	September 30,
	2019				20181
Cash flows from operating activities:
Net income (loss)	$	(181,588	)		$	53,073
Less:  (Income) loss from discontinued operations, net of income taxes	179,466				(62,457		)
Net loss from continuing operations	(2,122		)		(9,384		)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	44,997				47,220
Amortization and write-off of deferred debt issuance costs	3,558				2,563
Amortization of premium on notes payable	(230		)		(230		)
Deferred taxes	1,100				—
Gain on sale of property, plant and equipment, net	(13,949		)		(113		)
Derivative loss (gain)	(280		)		198
Net cash received (paid) for commodity derivatives	(249		)		2,698
Unit-based compensation	1,064				872
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	25,748				37,308
Product exchange receivables	164				(156		)
Inventories	(11,707		)		(36,434		)
Due from affiliates	1,150				434
Other current assets	(2,654		)		523
Trade and other accounts payable	(10,577		)		(16,889		)
Product exchange payables	(7,257		)		(2,018		)
Due to affiliates	(1,468		)		2,325
Income taxes payable	65				(52		)
Other accrued liabilities	(8,904		)		(11,123		)
Change in other non-current assets and liabilities	(600		)		828
Net cash provided by continuing operating activities	17,849				18,570
Net cash provided by discontinued operating activities	7,770				26,006
Net cash provided by operating activities	25,619				44,576
Cash flows from investing activities:
Payments for property, plant and equipment	(22,797		)		(29,986		)
Acquisitions	(23,720		)		—
Payments for plant turnaround costs	(5,117		)		(879		)
Proceeds from sale of property, plant and equipment	18,303				3,564
Net cash used in continuing investing activities	(33,331		)		(27,301		)
Net cash provided by discontinued investing activities	209,155				173,873
Net cash provided by investing activities	175,824				146,572
Cash flows from financing activities:
Payments of long-term debt and finance lease obligations	(639,308		)		(461,657		)
Proceeds from long-term debt	586,000				345,000
Proceeds from issuance of common units, net of issuance related costs	(289		)		(118		)
Purchase of treasury units	(392		)		(273		)
Deemed distribution to Martin Resource Management Corporation	—				(10,800		)
Payment of debt issuance costs	(4,294		)		(1,285		)
Excess purchase price over carrying value of acquired assets	(102,393		)		(26		)
Cash distributions paid	(39,265		)		(58,829		)
Net cash used in financing activities	(199,941		)		(187,988		)
Net increase in cash	1,502				3,160
Cash at beginning of period	300				89
Cash at end of period	$	1,802			$	3,249
Non-cash additions to property, plant and equipment	$	1,045			$	938

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 23, 2019.

¹ Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

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 September 30, 2019 and 2018

	Three Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands, except BBL per day)
Revenues:
Services	$	22,806			$	25,955			$	(3,149	)		(12	)%
Products	32,570				38,047				(5,477		)		(14	)%
Total revenues	55,376				64,002				(8,626		)		(13	)%
Cost of products sold	27,439				34,400				(6,961		)		(20	)%
Operating expenses	12,947				13,890				(943		)		(7	)%
Selling, general and administrative expenses	1,724				1,304				420				32	%
Depreciation and amortization	7,690				9,311				(1,621		)		(17	)%
	5,576				5,097				479				9	%
Other operating loss, net	—				(361		)		361				100	%
Operating income	$	5,576			$	4,736			$	840			18	%
Shore-based throughput volumes (guaranteed minimum) (gallons)	20,000				20,000				—				—	%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)	6,500				6,500				—				—	%

Comparative Results of Operations for the Nine Months Ended September 30, 2019 and 2018

	Nine Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands, except BBL per day)
Revenues:
Services	$	70,572			$	76,949			$	(6,377	)		(8	)%
Products	95,047				111,350				(16,303		)		(15	)%
Total revenues	165,619				188,299				(22,680		)		(12	)%
Cost of products sold	83,213				101,498				(18,285		)		(18	)%
Operating expenses	39,557				40,246				(689		)		(2	)%
Selling, general and administrative expenses	4,451				3,894				557				14	%
Depreciation and amortization	23,353				31,160				(7,807		)		(25	)%
	15,045				11,501				3,544				31	%
Other operating income (loss), net	17				(397		)		414				104	%
Operating income	$	15,062			$	11,104			$	3,958			36	%
Shore-based throughput volumes (guaranteed minimum) (gallons)	60,000				60,000				—				—	%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)	6,500				6,500				—				—	%

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 September 30, 2019 and 2018

	Three Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands)
Revenues	$	44,631			$	45,338			$	(707	)		(2	)%
Operating expenses	34,281				37,395				(3,114		)		(8	)%
Selling, general and administrative expenses	2,177				1,738				439				25	%
Depreciation and amortization	3,877				2,913				964				33	%
	4,296				3,292				1,004				30	%
Other operating income, net	150				672				(522		)		(78	)%
Operating income	$	4,446			$	3,964			$	482			12	%

 Comparative Results of Operations for the Nine Months Ended September 30, 2019 and 2018

	Nine Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands)
Revenues	$	137,050			$	130,828			$	6,222			5	%
Operating expenses	106,058				108,890				(2,832		)		(3	)%
Selling, general and administrative expenses	6,242				4,606				1,636				36	%
Depreciation and amortization	11,225				7,929				3,296				42	%
	$	13,525			$	9,403			$	4,122			44	%
Other operating income (loss), net	(2,235		)		496				(2,731		)		(551	)%
Operating income	$	11,290			$	9,899			$	1,391			14	%

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 September 30, 2019 and 2018

	Three Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands)
Revenues:
Services	$	2,859			$	2,787			$	72			3	%
Products	20,213				27,981				(7,768		)		(28	)%
Total revenues	23,072				30,768				(7,696		)		(25	)%
Cost of products sold	15,807				21,454				(5,647		)		(26	)%
Operating expenses	2,883				2,960				(77		)		(3	)%
Selling, general and administrative expenses	1,260				1,149				111				10	%
Depreciation and amortization	2,831				2,113				718				34	%
Operating income	$	291			$	3,092			$	(2,801	)		(91	)%
Sulfur (long tons)	180				166				14				8	%
Fertilizer (long tons)	59				50				9				18	%
Total sulfur services volumes (long tons)	239				216				23				11	%

 Comparative Results of Operations for the Nine Months Ended September 30, 2019 and 2018    

	Nine Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands)
Revenues:
Services	$	8,576			$	8,361			$	215			3	%
Products	81,945				98,565				(16,620		)		(17	)%
Total revenues	90,521				106,926				(16,405		)		(15	)%
Cost of products sold	61,049				74,270				(13,221		)		(18	)%
Operating expenses	7,835				8,801				(966		)		(11	)%
Selling, general and administrative expenses	3,689				3,230				459				14	%
Depreciation and amortization	8,553				6,263				2,290				37	%
	9,395				14,362				(4,967		)		(35	)%
Other operating income (loss), net	(1		)		14				(15		)		(107	)%
Operating income	$	9,394			$	14,376			$	(4,982	)		(35	)%
Sulfur (long tons)	471				520				(49		)		(9	)%
Fertilizer (long tons)	214				231				(17		)		(7	)%
Total sulfur services volumes (long tons)	685				751				(66		)		(9	)%

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 September 30, 2019 and 2018

	Three Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands)
Products Revenues	$	60,871			$	101,919			$	(41,048	)		(40	)%
Cost of products sold	54,273				100,297				(46,024		)		(46	)%
Operating expenses	1,624				1,846				(222		)		(12	)%
Selling, general and administrative expenses	852				1,124				(272		)		(24	)%
Depreciation and amortization	611				625				(14		)		(2	)%
	3,511				(1,973		)		5,484				278	%
Other operating income, net	16,152				—				16,152
Operating income (loss)	$	19,663			$	(1,973	)		$	21,636			1,097	%
NGL sales volumes (Bbls)	1,905				1,774				131				7	%

Comparative Results of Operations for the Nine Months Ended September 30, 2019 and 2018

	Nine Months Ended September 30,												Percent
	2019				2018				Variance				Change
	(In thousands)
Products Revenues	$	234,743			$	351,725			$	(116,982	)		(33	)%
Cost of products sold	222,974				332,419				(109,445		)		(33	)%
Operating expenses	5,010				5,235				(225		)		(4	)%
Selling, general and administrative expenses	3,049				3,869				(820		)		(21	)%
Depreciation and amortization	1,866				1,868				(2		)		—	%
	1,844				8,334				(6,490		)		(78	)%
Other operating income, net	16,168				—				16,168
Operating income	$	18,012			$	8,334			$	9,678			116	%
NGL sales volumes (Bbls)	6,269				6,958				(689		)		(10	)%

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 nine months ended September 30, 2019 and 2018, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.

Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2019				20181				2019				20181
	(in thousands)								(in thousands)
Net income (loss)	$	13,250			$	42,563			$	(181,588	)		$	53,073
Less:  (Income) loss from discontinued operations, net of income taxes	—				(50,443		)		179,466				(62,457		)
Income (loss) from continuing operations	13,250				(7,880		)		(2,122		)		(9,384		)
Adjustments:
Interest expense, net	11,973				13,238				40,630				39,783
Income tax expense	237				98				1,572				379
Depreciation and amortization	15,009				14,962				44,997				47,220
EBITDA from Continuing Operations	40,469				20,418				85,077				77,998
Adjustments:
Gain on sale of property, plant and equipment, net	(16,302		)		(311		)		(13,949		)		(113		)
Unrealized mark-to-market on commodity derivatives	(2,602		)		2,396				(529		)		2,896
Transaction costs associated with acquisitions	—				—				224				—
Non-cash insurance related accruals	—				—				500				—
Lower of cost or market adjustments	104				—				407				—
Unit-based compensation	349				352				1,064				872
Adjusted EBITDA from Continuing Operations	22,018				22,855				72,794				81,653
Adjustments:
Interest expense, net	(11,973		)		(13,238		)		(40,630		)		(39,783		)
Income tax expense	(237		)		(98		)		(1,572		)		(379		)
Amortization of debt premium	(77		)		(77		)		(230		)		(230		)
Amortization of deferred debt issuance costs	1,080				874				3,558				2,563
Deferred income taxes	244				—				1,100				—
Payments for plant turnaround costs	(375		)		(879		)		(5,117		)		(879		)
Maintenance capital expenditures	(2,389		)		(5,064		)		(8,876		)		(15,164		)
Distributable Cash Flow from Continuing Operations	$	8,291			$	4,373			$	21,027			$	27,781
Income (loss) from discontinued operations, net of income taxes	$	—			$	50,443			$	(179,466	)		$	62,457
Adjustments:
Depreciation and amortization	—				4,691				8,161				14,053
EBITDA from Discontinued Operations	—				55,134				(171,305		)		76,510
Equity in earnings of unconsolidated entities	—				(656		)		—				(3,382		)
Distributions from unconsolidated entities	—				500				—				3,500
Gain on sale of equity method investment	—				(48,564		)		—				(48,564		)
Loss on sale of property, plant and equipment, net	—				—				178,781				120
Non-cash insurance related accruals	—				—				3,213				—
Adjusted EBITDA from Discontinued Operations	—				6,414				10,689				28,184
Maintenance capital expenditures	—				(184		)		(912		)		(1,455		)
Distributable Cash Flow from Discontinued Operations	$	—			$	6,230			$	9,777			$	26,729

¹ Financial information for 2018 has been revised to include results attributable to MTI acquired from Martin Resource Management Corporation. See Note 1 – Nature of Operations and Basis of Presentation.

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