Martin Midstream Partners (MMLP) 8-K Martin Midstream Partners Reports 2007 Fourth Quarter and Annual Financial Results

Exhibit 99.1

MARTIN MIDSTREAM PARTNERS REPORTS
2007 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

     KILGORE, Texas, March 5, 2008 /PRNewswire-FirstCall via COMTEX/ — Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the fourth quarter and year ended December 31, 2007.

     MMLP reported net income for the fourth quarter of 2007 of $7.7 million, or $0.49 per limited partner unit. This compared to net income for the fourth quarter of 2006 of $8.4 million, or $0.64 per limited partner unit. Revenues for the fourth quarter of 2007 were $262.9 million compared to $149.0 million for the fourth quarter of 2006. Fourth quarter 2007 net income was negatively impacted by $1.9 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction of net income of approximately $0.13 per limited partner unit for the fourth quarter of 2007. Fourth quarter 2006 net income was positively impacted by $2.5 million of gains from involuntary conversions of property, plant and equipment and gains on sale of property, plant and equipment. These items resulted in an increase to net income of approximately $0.20 per limited partner unit for the fourth quarter of 2006.

     MMLP reported net income for the year ended December 31, 2007 of $24.9 million, or $1.67 per limited partner unit. This compared to net income for the year ended December 31, 2006 of $22.2 million, or $1.69 per limited partner unit. Revenues for the year ended December 31, 2007 were $765.8 million compared to revenues of $576.4 million for the year ended December 31, 2006. Net income for the year ended December 31, 2007 was negatively impacted by a $3.9 million non-cash derivatives loss. This non-cash adjustment resulted in a reduction to net income of approximately $0.28 per limited partner unit. Net income for the year ended December 31, 2006 was positively impacted by $3.4 million of gains from involuntary conversions of property, plant and equipment and gains on sale of property, plant and equipment and partially offset by a $1.2 million debt prepayment premium. Together, these items positively impacted net income by approximately $2.2 million, or approximately $0.17 per limited partner unit, for the year ended December 31, 2006.

     The Company’s distributable cash flow for the quarter and year ended December 31, 2007 was $11.9 million and $45.6 million, respectively. 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 Balance Sheets as of December 31, 2007 and December 31, 2006, its Consolidated Statements of Operations for the years ended December 31, 2007, 2006 and 2005, its Consolidated Statements of Changes in Capital for the years ended December 31, 2007, 2006 and 2005, its Consolidated Statements of Comprehensive Income for the years ended December 31, 2007, 2006 and 2005, its Consolidated Statements of Cash Flows for the years ended December 31, 2007, 2006 and 2005 and its Consolidated Statements of Operations for the quarters ended December 31, 2007 and 2006. These financial statements should be read in conjunction with the information contained in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on March 5, 2008.

     Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said “We were pleased with the overall performance of the company in 2007. We grew our distributable cash flow by 42% to $45.6 million in 2007 as a result of increasing cash flows in all our segments. We were able to increase our cash distributions for the fifth consecutive quarter and had a year over year cash distribution growth of 13%, slightly higher than our 11% distribution growth in 2006. We were also able to increase our 2007 distribution coverage to 1.2 times.”

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     Mr. Martin also stated, “We are looking forward to a strong 2008 in all our business segments. We will continue to focus on long term distribution growth as our cash flow should continue to grow as a result of our 2007 growth capital investments of $108 million and our planned growth capital expenditures of $100 million in 2008. The major investments made in 2007, including our Woodlawn acquisition, our Waskom expansion, and our sulfuric acid plant, have all exceeded our expectations, creating further visibility for near-term distribution growth. We continue to be selective in our acquisition strategy as we focus on buying strategic assets at reasonable multiples of cash flow. We remain optimistic our diversified operations will continue to provide unique opportunities for growth through acquisitions and organic growth projects.”

Investors’ Conference Call

     An investor’s conference call to review the fourth quarter and year end results will be held on Thursday, March 6, 2008, at 8:00 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 9:00 a.m. Central Time on March 6, 2008 through 11:59 p.m. Central Time on March 13, 2008. The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 276967. 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 services; marine transportation services for petroleum products and by-products; and sulfur and sulfur-based products processing, manufacturing, marketing 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 in the United States (GAAP). However, from time to time, MMLP uses certain non-GAAP financial measures such as distributable cash flow because MMLP’s management believes that this measure may provide users of this financial information with meaningful comparisons between current results and prior

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reported results and a meaningful measure of MMLP’s cash available to pay distributions. Distributable cash flow should not be considered an alternative to cash flow from operating activities or any other measure of financial performance in accordance with GAAP. Distributable cash flow is not intended to represent cash flows for the period, nor is it presented as an alternative to income from continuing operations. 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 Statements of Operations), plus depreciation and amortization (as reported in Statements of Operations), plus amortization of deferred debt issue costs (as reported in Statements of Cash Flows), plus (less) deferred taxes (as reported in its Statements of Cash Flows), plus distribution equivalents from unconsolidated entities (as described below), plus invested cash in unconsolidated entities (as described below), less equity in earnings of unconsolidated entities (as reported in Statements of Operations), plus non-cash derivatives loss (as reported in Statements of Cash Flows), less maintenance capital expenditures (as reported under the caption “Liquidity and Capital Resources” in MMLP’s Annual Report on Form 10-K filed on March 5, 2008), less gain on disposition or sale of property, plant and equipment (as reported in Statements of Cash Flows), plus unit-based compensation (as reported in Statements of Capital).

     MMLP’sdistribution equivalents from unconsolidated entitiesis calculated as distributions from unconsolidated entities (as reported in Statements of Cash Flows), plus return of investments from unconsolidated entities (as reported in Statements of Cash Flows), plus distributions in-kind from unconsolidated entities (as reported in Statements of Cash Flows).

     MMLP’sinvested cash in unconsolidated entitiesis calculated as investments in unconsolidated entities (as reported in Statements of Cash Flows), plus expansion capital expenditures in unconsolidated entities (as reported under the caption “Liquidity and Capital Resources” in MMLP’s Annual Report on Form 10-K filed on March 5, 2008).

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.

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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED BALANCE SHEETS

	December 31,
	2007			2006
	(Dollars in thousands)
Assets
Cash	$	4,113		$	3,303
Accounts and other receivables, less allowance for doubtful accounts of $211 and $394		88,039			56,712
Product exchange receivables		10,912			7,076
Inventories		51,798			33,019
Due from affiliates		2,325			1,330
Other current assets		819			2,041
Total current assets		158,006			103,481
Property, plant, and equipment, at cost		441,117			323,967
Accumulated depreciation		(98,080	)		(76,122	)
Property, plant and equipment, net		343,037			247,845
Goodwill		37,405			27,600
Investment in unconsolidated entities		75,690			70,651
Other assets, net		9,439			7,884
	$	623,577		$	457,461
Liabilities and Capital
Current installments of long-term debt	$	21		$	74
Trade and other accounts payable		104,598			53,450
Product exchange payables		24,554			14,737
Due to affiliates		7,543			10,474
Income taxes payable		602			86
Other accrued liabilities		13,930			3,876
Total current liabilities		151,248			82,697
Long-term debt		225,000			174,021
Deferred income taxes		8,815			—
Other long-term obligations		2,666			2,218
Total liabilities		387,729			258,936
Partners’ capital		242,610			198,403
Accumulated other comprehensive income (loss)		(6,762	)		122
Total partners’ capital		235,848			198,525
Commitments and contingencies
	$	623,577		$	457,461

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008.

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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31,
	2007			2006			2005
	(Dollars in thousands, except per unit amounts)
Revenues:
Terminalling and storage	$	29,400		$	24,182		$	23,081
Marine transportation		59,579			47,835			35,451
Product sales:
Natural gas services		515,992			389,735			301,676
Sulfur services		131,326			102,597			68,418
Terminalling and storage		29,525			12,035			9,817
		676,843			504,367			379,911
Total revenues		765,822			576,384			438,443
Costs and expenses:
Cost of products sold:
Natural gas services		495,641			374,218			291,109
Sulfur services		97,577			75,165			52,632
Terminalling and storage		25,471			9,787			8,079
		618,689			459,170			351,820
Expenses:
Operating expenses		83,533			65,387			46,888
Selling, general and administrative		11,985			10,977			8,133
Depreciation and amortization		23,442			17,597			12,642
Total costs and expenses		737,649			553,131			419,483
Other operating income		703			3,356			—
Operating income		28,876			26,609			18,960
Other income (expense):
Equity in earnings of unconsolidated entities		10,941			8,547			1,591
Interest expense		(14,533	)		(12,466	)		(6,909	)
Debt prepayment premium		—			(1,160	)		—
Other, net		299			713			238
Total other income (expense)		(3,293	)		(4,366	)		(5,080	)
Net income before taxes		25,583			22,243			13,880
Income taxes		644			—			—
Net income	$	24,939		$	22,243		$	13,880
General partner’s interest in net income	$	1,564		$	949		$	278
Limited partners’ interest in net income	$	23,375		$	21,294		$	13,602
Net income per limited partner unit — basic and diluted	$	1.67		$	1.69		$	1.58
Weighted average limited partner units — basic		14,018,799			12,602,000			8,583,634
Weighted average limited partner units — diluted		14,022,545			12,604,425			8,583,634

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008.

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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL
For the years ended December 31, 2007, 2006 and 2005

	Partners' Capital														Accumulated
	Limited Partners											General			Comprehensive
	Common					Subordinated						Partner			Income
	Units		Amount			Units			Amount			Amount			Amount			Total
	(Dollars in thousands)
Balances — December 31, 2004		4,222,500	$	79,680			4,253,362		$	(4,772	)	$	626			—		$	75,534
Net income		—		6,756			—			6,846			278			—			13,880
Units issued in connection with Prism Gas acquisition		756,480		24,616			—			—			—			—			24,616
Conversion of subordinated units to common units		850,672		(1,599	)		(850,672	)		1,599			—			—			—
General partner contribution		—		—			—			—			502			—			502
Cash distributions ($2.19 per unit)		—		(9,247	)		—			(9,315	)		(405	)		—			(18,967	)
Balances — December 31, 2005		5,829,652		100,206			3,402,690			(5,642	)		1,001			—			95,565
Net income		—		16,069			—			5,225			949			—			22,243
Follow-on public offering		3,450,000		95,272			—			—			—			—			95,272
Issuance of common units		470,484		15,000			—			—			—			—			15,000
General partner contribution		—		—			—			—			2,358			—			2,358
Conversion of subordinated units to common units		850,672		(2,495	)		(850,672	)		2,495			—			—			—
Unit-based compensation		3,000		24			—			—			—			—			24
Cash distributions ($2.44 per unit)		—		(22,650	)		—			(8,302	)		(1,107	)		—			(32,059	)
Commodity hedging gains reclassified to earnings		—		—			—			—			—			2			2
Adjustment in fair value of derivatives		—		—			—			—			—			120			120
Balances — December 31, 2006		10,603,808	$	201,426			2,552,018		$	(6,224	)	$	3,201		$	122		$	198,525
Net Income		—		19,781			—			3,594			1,564			—			24,939
Follow-on public offering		1,380,000		55,933			—			—			—			—			55,933
General partner contribution		—		—			—			—			1,192			—			1,192
Conversion of subordinated units to common units		850,672		(3,243	)		(850,672	)		3,243			—			—			—
Unit-based compensation		3,000		46			—			—			—			—			46
Cash distributions ($2.60 per unit)		—		(29,423	)		—			(6,635	)		(1,845	)		—			(37,903	)
Commodity hedging gains reclassified to earnings		—		—			—			—			—			478			478
Adjustment in fair value of derivatives		—		—			—			—			—			(7,362	)		(7,362	)
Balances — December 31, 2007		12,837,480	$	244,520			1,701,346		$	(6,022	)	$	4,112		$	(6,762	)	$	235,848

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008.

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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)

	Year Ended December 31,
	2007			2006			2005
	(Dollars in thousands)
Net income	$	24,939		$	22,243		$	13,880
Changes in fair values of commodity cash flow hedges		(3,569	)		370			—
Commodity hedging gains reclassified to earnings		478			2			—
Changes in fair value of interest rate cash flow hedges		(3,793	)		(250	)		—
Comprehensive income	$	18,055		$	22,365		$	13,880

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008.

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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2007			2006			2005
	(Dollars in thousands)
Cash flows from operating activities:
Net income	$	24,939		$	22,243		$	13,880
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		23,442			17,597			12,642
Amortization of deferred debt issue costs		1,233			1,040			600
Deferred income taxes		(149	)		—			—
Gain on disposition or sale of property, plant, and equipment		(703	)		(231	)		(37	)
Gain on involuntary conversion of property, plant, and equipment		—			(3,125	)		—
Equity in earnings of unconsolidated entities		(10,941	)		(8,547	)		(1,591	)
Distributions from unconsolidated entities		1,523			541			231
Distribution in-kind from unconsolidated entities		9,337			8,311			1,115
Non-cash derivatives (gain) loss		3,904			(389	)		(555	)
Other		46			24			—
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables		(27,066	)		13,763			(10,565	)
Product exchange receivables		(3,836	)		(4,935	)		(1,974	)
Inventories		(18,297	)		890			(4,474	)
Due from affiliates		(995	)		145			417
Other current assets		198			115			36
Trade and other accounts payable		47,535			(13,937	)		27,669
Product exchange payables		9,817			5,113			(8,238	)
Due to affiliates		(2,931	)		6,982			3,063
Income taxes payable		245			—			—
Other accrued liabilities		870			(5,912	)		(496	)
Change in other non-current assets and liabilities, net		(154	)		(386	)		254
Net cash provided by operating activities		58,017			39,302			31,977
Cash flows from investing activities:
Payments for property, plant, and equipment		(82,164	)		(66,352	)		(24,814	)
Acquisitions, net of cash acquired		(41,271	)		(24,306	)		(114,167	)
Proceeds from sale of property, plant, and equipment		1,290			1,825			95
Insurance proceeds from involuntary conversion of property, plant and equipment		—			4,812			—
Return of investments from unconsolidated entities		1,952			433			466
Investments in unconsolidated entities		(6,910	)		(11,510	)		(322	)
Net cash used in investing activities		(127,103	)		(95,098	)		(138,742	)
Cash flows from financing activities:
Payments of long-term debt		(169,024	)		(163,010	)		(134,091	)
Net proceeds from follow on public offering		55,933			95,272			—
General partner contribution		1,192			2,358			502
Proceeds from long-term debt		219,950			135,801			250,900
Payments of debt issuance costs		(252	)		(371	)		(3,655	)
Cash distributions paid		(37,903	)		(32,059	)		(18,967	)
Proceeds from issuance of common units		—			15,000			15,000
Net cash provided by financing activities		69,896			52,991			109,689
Net increase in cash		810			(2,805	)		2,924
Cash at beginning of period		3,303			6,108			3,184
Cash at end of period	$	4,113		$	3,303		$	6,108
Non-cash:
Financed portion of non-compete agreement	$	—		$	—		$	690
Common units issued for acquisitions	$	—		$	—		$	9,616

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008.

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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS

	4th Quarter			4th Quarter
	2007			2006
Revenues:
Terminalling and storage	$	7,842		$	6,671
Marine transportation		15,072			14,665
Product sales:
Natural gas services		187,889			101,536
Sulfur		41,727			22,516
Terminalling and storage		10,332			3,617
		239,948			127,669
Total revenues		262,862			149,005
Costs and expenses:
Cost of products sold:
Natural gas services		182,818			95,979
Sulfur		30,845			14,852
Terminalling and storage		8,535			2,921
		222,198			113,752
Expenses:
Operating expenses		22,349			19,636
Selling, general and administrative		3,630			3,176
Depreciation and amortization		6,844			4,813
Total costs and expenses		255,021			141,377
Other operating income (loss)		703			2,503
Operating income		8,544			10,131
Other income (expense):
Equity in earnings of unconsolidated entities		3,737			1,105
Interest expense		(4,577	)		(3,241	)
Debt prepayment premium		—			—
Other, net		94			383
Total other income (expense)		(746	)		(1,753	)
Income taxes		92			—
Net income	$	7,706		$	8,378
General partner’s interest in net income	$	558		$	282
Limited partners’ interest in net income	$	7,148		$	8,096
Net income per limited partner unit — basic and diluted	$	.49		$	.64
Weighted average limited partner units		14,538,826			12,741,596

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in MMLP’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 5, 2008.

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

	Three Months Ended			Year Ended
	December 31,			December 31,
	2007			2007
Net income	$	7,706		$	24,939
Adjustments to reconcile net income to distributable cash flow:
Depreciation and amortization		6,844			23,442
Amortization of deferred debt issue costs		423			1,233
Deferred taxes		(38	)		(149	)
Distribution equivalents from unconsolidated entities1		2,869			12,812
Invested cash in unconsolidated entities2		468			1,338
Equity in earnings of unconsolidated entities		(3,737	)		(10,941	)
Non-cash derivatives loss		1,868			3,904
Maintenance capital expenditures		(3,744	)		(10,342	)
Gain on disposition or sale of property, plant and equipment		(703	)		(703	)
Unit based compensation		12			46
Distributable cash flow	$	11,968		$	45,579

	Three Months Ended			Year Ended
	December 31, 2007			December 31, 2007
1Distribution equivalents from unconsolidated entities:
Distributions from unconsolidated entities	$	850		$	1,523
Return of investments from unconsolidated entities		690			1,952
Distributions in-kind from unconsolidated entities		2,709			9,337
Distribution equivalents from unconsolidated entities	$	2,869		$	12,812
2Invested cash in unconsolidated entities::
Investments in unconsolidated entities	$	(780	)	$	(6,910	)
Expansion capital expenditures in unconsolidated entities		1,248			8,248
Invested cash in unconsolidated entities	$	468		$	(1,338	)

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