Martin Midstream Partners 8K Reports 2006 Third Quarter Financial Results | MMLP 9 Nov 06

Exhibit 99.1

MARTIN MIDSTREAM PARTNERS REPORTS
2006 THIRD QUARTER FINANCIAL RESULTS

KILGORE, Texas, November 9, 2006 /PRNewswire-FirstCall via COMTEX/ — Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the third quarter ended September 30, 2006.

MMLP reported net income for the third quarter of 2006 of $4.3 million, or $0.32 per limited partner unit. This compared to net income for the third quarter of 2005 of $4.8 million, or $0.56 per limited partner unit. Revenues for the third quarter of 2006 were $147.5 million compared to $112.8 million for the third quarter of 2005.

MMLP reported net income for the nine months ended September 30, 2006 of $13.9 million, or $1.05 per limited partner unit. This compared to net income for the nine months ended September 30, 2005 of $11.3 million, or $1.31 per limited partner unit. Revenues for the nine months ended September 30, 2006 were $427.4 million, compared to revenues of $293.8 million for the nine months ended September 30, 2005.

The Company’s distributable cash flow for the third quarter of 2006 was $7.3 million, compared to $7.0 million for the third quarter of 2005. The Company’s distributable cash flow for the nine months ended September 30, 2006 was $22.5 million, compared to $16.7 million for the nine months ended September 30, 2005. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under “Use of Non-GAAP Financial Information.” The Company has also included below a table entitled “Distributable Cash Flow” in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measurement.

Included with this press release are MMLP’s Consolidated and Condensed Balance Sheets as of September 30, 2006 and December 31, 2005, its Consolidated and Condensed Statements of Operations for the three and nine months ended September 30, 2006 and 2005 and its Consolidated and Condensed Statements of Cash Flows for the nine months ended September 30, 2006 and 2005. These financial statements should be read in conjunction with the information contained in the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on November 9, 2006.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said “While our terminalling and natural gas services segments performed well in the third quarter, our sulfur and fertilizer results were disappointing due to reduced volumes and increasing freight costs, respectively. In addition, we experienced a slight decline in the performance of our marine segment due to unanticipated repairs and maintenance expenses. Excluding 2005, we have historically experienced this seasonal decline in our third quarter results and this year fits that trend. I continue to remain optimistic as we head into the fourth quarter and into 2007 when we anticipate that we will begin to realize the benefits of our 2006 organic growth plan.”

Investors’ Conference Call

An investor’s conference call to review the third quarter results will be held on Friday, November 10, 2006, at 8:30 a.m. Central Time. The conference call can be accessed by calling (877) 407-9205. An audio replay of the conference call will be available by calling (877) 660-6853 from 9:30 a.m. Central Time on November 10, 2006 through 11:59 p.m. Central Time on November 17, 2006. The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 219531. The audio replay of the conference call will also be archived on the Company’s website atwww.martinmidstream.com.

About Martin Midstream Partners

Martin Midstream Partners 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: terminalling and storage services for petroleum products and by-products; natural gas gathering, processing and LPG distribution; marine transportation services for petroleum products and by-products; sulfur gathering, processing and distribution; and fertilizer manufacturing and distribution.

Additional information concerning the Company is available on the Company’s website atwww.martinmidstream.com.

Forward-Looking Statements

Statements about Martin Midstream Partners’ 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 its control, which could cause actual results to differ materially from such statements. While MMLP 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 Company’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners 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.

Use of Non-GAAP Financial Information

MMLP reports its financial results in accordance with generally accepted accounting principles. However, from time to time, MMLP uses certain non-GAAP financial measures such as distributable cash flow because management believes that this measure may provide users of this financial information with meaningful comparisons between current results and prior reported results and a meaningful measure of MMLP’s cash flow after it has satisfied the capital and related requirements of its operations. Distributable cash flow is not a measure of financial

performance or liquidity under GAAP. It should not be considered in isolation or as an indicator of MMLP’s performance. Furthermore, it should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. This information may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. Accordingly, MMLP has presented herein, and will present in other information it publishes that contains this non-GAAP financial measure, a reconciliation of this measure to the most directly comparable GAAP financial measure.

The Company has included below a table entitled “Distributable Cash Flow” in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measure. MMLP calculates distributable cash flow as follows: net income (as reported in its Consolidated and Condensed Statements of Operations), plus depreciation and amortization and amortization of deferred debt issue costs (as reported in its Consolidated and Condensed Statements of Cash Flows), plus distributions from unconsolidated entities (as described below), plus distributable cash from unconsolidated entities (as described below), less equity in earnings of unconsolidated entities (as reported in its Consolidated and Condensed Statements of Operations), less non-cash mark-to-market on derivatives (as reported in its Consolidated and Condensed Statements of Cash Flows), less maintenance capital expenditures (as described below), less gain on involuntary conversion of property, plant and equipment (as reported in its Consolidated and Condensed Statements of Cash Flows), plus debt prepayment premium (as reported in its Consolidated and Condensed Statements of Operations), plus other (as reported in its Consolidated and Condensed Statements of Cash Flows).

MMLP’sdistributions from unconsolidated entitiesis calculated as distributions from unconsolidated entities (as reported in its Consolidated and Condensed Statements of Cash Flows) plus distributions in-kind from equity investments (as reported in its Consolidated and Condensed Statements of Cash Flows). For the quarter ended September 30, 2006, MMLP’s distributions from unconsolidated entities and distributions in-kind from equity investments were $0.2 and $2.8 million, respectively. For the nine months ended September 30, 2006, MMLP’s distributions from unconsolidated entities and distributions in-kind from equity investments were $0.8 and $6.7 million, respectively.

MMLP’sdistributable cash from unconsolidated entitiesis calculated as investments in unconsolidated entities (as reported in its Consolidated and Condensed Statements of Cash Flows), plus investments in working capital of unconsolidated entities (as reported in Note 6 – Investment in Unconsolidated Partnerships and Joint Ventures of its Quarterly Report on Form 10-Q filed on November 9, 2006), plus expansion capital expenditures in unconsolidated entities (as reported in Note 6 – Investment in Unconsolidated Partnerships and Joint Ventures of its Quarterly Report on Form 10-Q filed on November 9, 2006). For the quarter ended September 30, 2006, MMLP’s investments in unconsolidated entities, investments in working capital of unconsolidated entities, and unconsolidated entities expansion capital expenditures were $(6.0), $2.5, and $3.4 million, respectively. For the nine months ended September 30, 2006, MMLP’s investments in unconsolidated entities, investments in working capital of unconsolidated entities, and unconsolidated entities expansion capital expenditures were $(7.3), $2.5 and $5.8 million, respectively.

MMLP’scapital expendituresinclude both expansion and maintenance capital expenditures and are calculated as payments for property, plant and equipment (as reported in its Consolidated and Condensed Statements of Cash Flows) plus acquisitions, net of cash acquired (as reported in its Consolidated and Condensed Statements of Cash Flows). For the quarter ended September 30, 2006, payments for property, plant and equipment and acquisitions, net of cash acquired, were $15.8 and $9.1 million, respectively. For the nine months ended September 30, 2006, payments for property, plant and equipment and acquisitions, net of cash acquired, were $53.5 and $16.5 million, respectively. For the quarter and nine months ended September 30, 2006, expansion capital expenditures were $23.2 and $59.7 million, respectively, excluding unconsolidated entities expansion capital expenditures. For the quarter ended September 30, 2006, maintenance capital expenditures were $1.5 million, including $0.3 million in hurricane-related maintenance capital expenditures. For the nine months ended September 30, 2006, maintenance capital expenditures were $10.4 million, including $4.2 million in hurricane-related maintenance capital expenditures.

Contacts:Robert D. Bondurant, Executive Vice President and Chief Financial Officer of Martin Midstream GP LLC, the Company’s general partner at (903) 983-6200.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)


	September 30,			December 31,
	2006			2005
	(Unaudited)			(Audited)
Assets
Cash	$	834		$	6,465
Accounts and other receivables, less allowance for doubtful accounts of $297 and $140		51,779			72,162
Product exchange receivables		6,895			2,141
Inventories		39,739			33,909
Due from affiliates		1,787			1,475
Other current assets		1,787			1,420

Total current assets		102,821			117,572


Property, plant and equipment, at cost		304,365			235,218
Accumulated depreciation		(71,657	)		(59,505	)

Property, plant and equipment, net		232,708			175,713


Goodwill		27,600			27,600
Investment in unconsolidated entities		67,119			59,879
Other assets, net		7,594			8,280

	$	437,842		$	389,044


Liabilities and Partners’ Capital

Current installments of long-term debt	$	73		$	9,104
Trade and other accounts payable		45,731			67,387
Product exchange payables		14,527			9,624
Due to affiliates		8,459			3,492
Income taxes payable		209			6,345
Other accrued liabilities		3,974			3,617

Total current liabilities		72,973			99,569


Long-term debt		180,040			192,200
Other long-term obligations		2,418			1,710

Total liabilities		255,431			293,479


Partners’ capital		182,727			95,565
Accumulated other comprehensive income		(316	)		—

Total partners’ capital		182,411			95,565


Commitments and contingencies
	$	437,842		$	389,044

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2006.

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


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenues:
Terminalling and storage	$	6,163		$	5,782		$	17,511		$	16,858
Marine transportation		12,949			8,578			33,170			26,634
Product sales:
Natural gas/LPG services		102,217			71,732			288,199			199,487
Sulfur		13,716			16,803			46,729			17,743
Fertilizer		9,256			7,565			33,352			25,980
Terminalling and storage		3,204			2,320			8,418			7,114

		128,393			98,420			376,698			250,324

Total revenues		147,505			112,780			427,379			293,816


Costs and expenses:
Cost of products sold:
Natural gas/LPG services		98,639			68,140			278,239			192,187
Sulfur		8,496			11,331			30,668			12,030
Fertilizer		8,243			6,343			29,645			21,955
Terminalling and storage		2,550			1,950			6,866			5,969

		117,928			87,764			345,418			232,141

Expenses:
Operating expenses		17,470			13,423			45,751			32,778
Selling, general and administrative		2,810			1,848			7,801			5,420
Depreciation and amortization		4,577			3,312			12,784			8,672

Total costs and expenses		142,785			106,347			411,754			279,011

Other operating income		—			—			853			—

Operating income		4,720			6,433			16,478			14,805


Other income (expense):
Equity in earnings of unconsolidated entities		2,720			27			7,442			222
Interest expense		(3,189	)		(1,639	)		(9,225	)		(3,834	)
Debt prepayment premium		—			—			(1,160	)		—
Other, net		78			25			330			127

Total other income (expense)		(391	)		(1,587	)		(2,613	)		(3,485	)


Net income	$	4,329		$	4,846		$	13,865		$	11,320


General partner’s interest in net income	$	218		$	97		$	702		$	226
Limited partners’ interest in net income	$	4,111		$	4,749		$	13,163		$	11,094

Net income per limited partner unit — basic and diluted	$	0.32		$	0.56		$	1.05		$	1.31

Weighted average limited partner units — basic		12,682,342			8,475,862			12,555,968			8,475,862
Weighted average limited partner units — diluted		12,684,889			8,475,862			12,558,601			8,475,862

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


	Nine Months Ended
	September 30
	2006			2005
Cash flows from operating activities:
Net income	$	13,865		$	11,320

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12,784			8,672
Amortization of deferred debt issuance costs		770			396
Gain on involuntary conversion of property, plant and equipment		(853	)		—
Equity in earnings of unconsolidated entities		(7,442	)		(222	)
Non-cash mark-to-market on derivatives		(154	)		—
Distributions in-kind from equity investments		6,710			—
Other		15			—
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:

Accounts and other receivables		18,695			261
Product exchange receivables		(4,754	)		(3,565	)
Inventories		(5,830	)		(6,454	)
Due from affiliates		(312	)		794
Other current assets		90			200
Trade and other accounts payable		(21,656	)		11,495
Product exchange payables		4,903			626
Due to affiliates		4,967			787
Other accrued liabilities		(5,747	)		412
Change in other non-current assets and liabilities		(148	)		(446	)

Net cash provided by operating activities		15,903			24,276


Cash flows from investing activities:
Payments for property, plant and equipment		(53,511	)		(12,264	)
Acquisitions, net of cash acquired		(16,544	)		(29,227	)
Proceeds from sale of property, plant and equipment		770			46
Insurance proceeds from involuntary conversion of property, plant and equipment		2,541			—
Escrow deposit for acquisition		—			(5,000	)
Investments in unconsolidated entities		(7,344	)		—
Distributions from unconsolidated entities		836			—

Net cash used in investing activities		(73,252	)		(46,445	)


Cash flows from financing activities:
Payments of long-term debt		(105,810	)		(16,691	)
Proceeds from long-term debt		84,619			53,200
Net proceeds from follow on public offering		95,272			—
Payments of debt issuance costs		(371	)		(397	)
General partner contribution		2,052			—
Cash distributions paid		(24,044	)		(14,011	)

Net cash provided by financing activities		51,718			22,101


Net decrease in cash and cash equivalents		(5,631	)		(68	)

Cash at beginning of period		6,465			3,184


Cash at end of period	$	834		$	3,116

MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
(Dollars in thousands)
(Unaudited Non-GAAP Financial Measure)


	Three Months Ended						Nine Months Ended
	September 30						September 30
	2006			2005			2006			2005
Net Income	$	4,329		$	4,846		$	13,865		$	11,320
Adjustments to reconcile net income to distributable cash flow:
Depreciation and amortization		4,577			3,312			12,784			8,672
Amortization of deferred debt issuance costs		270			145			770			396
Distributions from unconsolidated entities¹		2,945			—			7,546			—
Distributable cash from unconsolidated entities²		(66	)		—			918			—
Equity in earnings of unconsolidated entities		(2,720	)		(27	)		(7,442	)		(222	)
Non-cash mark-to-market on derivatives		(792	)		—			(154	)		—
Maintenance capital expenditures³		(1,298	)		(938	)		(6,151	)		(3,178	)
Gain on involuntary conversion of property, plant and equipment		—			—			(853	)		—
Debt prepayment premium		—			—			1,160			—
Other		7			(291	)		65			(245	)

Distributable cash flow	$	7,252		$	7,047		$	22,508		$	16,743


	Three Months Ended						Nine Months Ended
	September 30						September 30
	2006			2005			2006			2005
¹Distributions from unconsolidated entities:
Distributions from unconsolidated entities (cash)	$	150		$	—		$	836		$	—
Distributions in-kind from equity investments		2,795			—			6,710			—

Distributions from unconsolidated entities	$	2,945		$	—		$	7,546		$	—


²Distributable cash from unconsolidated entities:
Investments in unconsolidated entities	$	(6,008	)	$	—		$	(7,344	)	$	—
Investments in working capital of unconsolidated entities		2,500			—		$	2,500			—
Expansion capital expenditures in unconsolidated entities		3,443			—			5,762			—

Distributable cash from unconsolidated entities	$	(66	)	$	—		$	918		$	—


³Maintenance capital expenditures:
Payments for property, plant and equipment	$	(15,758	)	$	(7,090	)	$	(53,511	)	$	(12,264	)
Acquisitions		(9,093	)		(19,039	)		(16,544	)		(29,227	)

Capital expenditures		(24,851	)		(26,129	)		(70,055	)		(41,491	)
Expansion capital expenditures		23,220			25,191			59,669			38,313
Hurricane-related maintenance capital expenditures		333			—			4,236			—

Maintenance capital expenditures	$	(1,298	)	$	(938	)	$	(6,151	)	$	(3,178	)

Martin Midstream Partners (MMLP) 8-KMartin Midstream Partners Reports 2006 Third Quarter Financial Results