Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 01, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-50056 | ||
Entity Registrant Name | MARTIN MIDSTREAM PARTNERS L.P. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 05-0527861 | ||
Entity Address, Address Line One | 4200 Stone Road | ||
Entity Address, City or Town | Kilgore | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75662 | ||
City Area Code | 903 | ||
Local Phone Number | 983-6200 | ||
Title of each class | Common Units representing limited partnership interests | ||
Trading Symbol(s) | MMLP | ||
Name of each exchange on which registered | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 95,996,227 | ||
Entity Common Stock, Shares Outstanding (in shares) | 38,836,950 | ||
Documents Incorporated by Reference | None. | ||
Entity Central Index Key | 0001176334 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | Dallas, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash | $ 52 | $ 4,958 |
Trade and accrued accounts receivable, less allowance for doubtful accounts of $311 and $261, respectively | 84,199 | 52,748 |
Inventories | 62,120 | 54,122 |
Due from affiliates | 14,409 | 14,807 |
Other current assets | 12,908 | 8,991 |
Total current assets | 173,688 | 135,626 |
Property, plant and equipment, at cost | 898,770 | 889,108 |
Accumulated depreciation | (553,300) | (509,237) |
Property, plant and equipment, net | 345,470 | 379,871 |
Goodwill | 16,823 | 16,823 |
Right-of-use assets | 21,861 | 22,260 |
Deferred income taxes, net | 19,821 | 22,253 |
Intangibles and other assets, net | 2,198 | 2,805 |
Total assets | 579,861 | 579,638 |
Liabilities and Partners’ Capital (Deficit) | ||
Current portion of long term debt and finance lease obligations | 280 | 31,497 |
Trade and other accounts payable | 70,342 | 51,900 |
Product exchange payables | 1,406 | 373 |
Due to affiliates | 1,824 | 435 |
Income taxes payable | 385 | 556 |
Fair value of derivatives | 0 | 207 |
Other accrued liabilities | 29,850 | 34,407 |
Total current liabilities | 104,087 | 119,375 |
Long-term debt, net | 498,871 | 484,597 |
Finance lease obligations | 9 | 289 |
Operating lease liabilities | 15,704 | 15,181 |
Other long-term obligations | 9,227 | 7,067 |
Total liabilities | 627,898 | 626,509 |
Commitments and contingencies | ||
Partners’ capital (deficit) | (48,853) | (46,871) |
Accumulated other comprehensive income | 816 | 0 |
Partners’ capital (deficit) | (48,037) | (46,871) |
Total liabilities and partners' capital | $ 579,861 | $ 579,638 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Allowance for doubtful accounts | $ 311 | $ 261 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues: | ||||
Total revenues | $ 882,431 | $ 672,142 | $ 847,118 | |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | 533,098 | 356,926 | 492,795 | |
Expenses: | ||||
Operating expenses | [1] | 193,952 | 183,747 | 209,313 |
Selling, General and Administrative Expense | [1] | 41,012 | 40,900 | 41,433 |
Depreciation and amortization | 56,751 | 61,462 | 60,060 | |
Total costs and expenses | 824,813 | 643,035 | 803,601 | |
Other operating income (loss), net | (534) | 12,488 | 14,587 | |
Gain on involuntary conversion of property, plant and equipment | 196 | 4,907 | 0 | |
Operating income | 57,280 | 46,502 | 58,104 | |
Other income (expense): | ||||
Interest expense, net | (54,107) | (46,210) | (51,690) | |
Gain on retirement of senior unsecured notes | 0 | 3,484 | 0 | |
Loss on exchange of senior unsecured notes | 0 | (8,817) | 0 | |
Other, net | (4) | 6 | 6 | |
Total other income (expense) | (54,111) | (51,537) | (51,684) | |
Net income (loss) before taxes | 3,169 | (5,035) | 6,420 | |
Income tax expense | (3,380) | (1,736) | (1,900) | |
Income (loss) from continuing operations | (211) | (6,771) | 4,520 | |
Loss from discontinued operations, net of income taxes | 0 | 0 | (179,466) | |
Net loss | (211) | (6,771) | (174,946) | |
Less general partner's interest in net loss | 4 | 135 | 3,499 | |
Less (income) loss allocable to unvested restricted units | 0 | 21 | (41) | |
Limited partners' interest in net loss | (207) | (6,615) | (171,488) | |
Terminalling and storage | ||||
Revenues: | ||||
Total revenues | [1] | 75,223 | 80,864 | 87,397 |
Transportation | ||||
Revenues: | ||||
Total revenues | [1] | 144,314 | 132,492 | 159,622 |
Sulfur services | ||||
Revenues: | ||||
Total revenues | 11,799 | 11,659 | 11,434 | |
Product sales | ||||
Revenues: | ||||
Total revenues | [1] | 651,095 | 447,127 | 588,665 |
Natural gas liquids | ||||
Revenues: | ||||
Total revenues | [1] | 414,043 | 247,479 | 366,502 |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | [1] | 362,706 | 215,895 | 325,376 |
Sulfur services | ||||
Revenues: | ||||
Total revenues | [1] | 133,243 | 96,348 | 99,906 |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | [1] | 89,134 | 58,515 | 65,893 |
Terminalling and storage | ||||
Revenues: | ||||
Total revenues | [1] | 103,809 | 103,300 | 122,257 |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | [1] | $ 81,258 | $ 82,516 | $ 101,526 |
[1] | Related Party Transactions Included Above Year Ended December 31, 2021 2020 2019 Revenues: Terminalling and storage $ 62,677 $ 63,823 $ 71,733 Transportation 20,046 21,997 24,243 Product sales 479 317 931 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Sulfur services 9,980 10,519 10,765 Terminalling and storage 27,866 18,429 23,859 Expenses: Operating expenses 78,607 80,075 88,194 Selling, general and administrative 32,924 32,886 32,622 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS - (Related Party Transactions) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues: | ||||
Total revenues | $ 882,431 | $ 672,142 | $ 847,118 | |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | 533,098 | 356,926 | 492,795 | |
Expenses: | ||||
Operating expenses | 78,607 | 80,075 | 88,194 | |
Selling, general and administrative | 32,924 | 32,886 | 32,622 | |
Terminalling and storage | ||||
Revenues: | ||||
Total revenues | [1] | 75,223 | 80,864 | 87,397 |
Transportation | ||||
Revenues: | ||||
Total revenues | [1] | 144,314 | 132,492 | 159,622 |
Product sales | ||||
Revenues: | ||||
Total revenues | [1] | 651,095 | 447,127 | 588,665 |
Sulfur services | ||||
Revenues: | ||||
Total revenues | [1] | 133,243 | 96,348 | 99,906 |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | [1] | 89,134 | 58,515 | 65,893 |
Terminalling and storage | ||||
Revenues: | ||||
Total revenues | [1] | 103,809 | 103,300 | 122,257 |
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | [1] | 81,258 | 82,516 | 101,526 |
Related Party | ||||
Expenses: | ||||
Operating expenses | 78,607 | 80,075 | 88,194 | |
Related Party | Terminalling and storage | ||||
Revenues: | ||||
Total revenues | 62,677 | 63,823 | 71,733 | |
Related Party | Transportation | ||||
Revenues: | ||||
Total revenues | 20,046 | 21,997 | 24,243 | |
Expenses: | ||||
Operating expenses | 55,382 | 55,786 | 61,376 | |
Related Party | Product sales | ||||
Revenues: | ||||
Total revenues | 479 | 317 | 931 | |
Related Party | Sulfur services | ||||
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | 9,980 | 10,519 | 10,765 | |
Expenses: | ||||
Operating expenses | 4,411 | 4,489 | 4,810 | |
Related Party | Terminalling and storage | ||||
Cost of products sold: (excluding depreciation and amortization) | ||||
Total cost of products sold (excluding depreciation and amortization) | 27,866 | 18,429 | 23,859 | |
Expenses: | ||||
Operating expenses | $ 16,776 | $ 17,797 | $ 18,562 | |
[1] | Related Party Transactions Included Above Year Ended December 31, 2021 2020 2019 Revenues: Terminalling and storage $ 62,677 $ 63,823 $ 71,733 Transportation 20,046 21,997 24,243 Product sales 479 317 931 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Sulfur services 9,980 10,519 10,765 Terminalling and storage 27,866 18,429 23,859 Expenses: Operating expenses 78,607 80,075 88,194 Selling, general and administrative 32,924 32,886 32,622 |
CONSOLIDATED STATEMENTS OF OP_3
CONSOLIDATED STATEMENTS OF OPERATIONS - (Allocation of Net Income) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Limited partner interest: | |||
Continuing operations | $ (207) | $ (6,615) | $ 4,430 |
Discontinued operations | 0 | 0 | (175,918) |
Limited partner's interest in net income | (207) | (6,615) | (171,488) |
General partner interest: | |||
Continuing operations | (4) | (135) | 91 |
Discontinued operations | 0 | 0 | (3,590) |
Net income allocated to general partners | $ (4) | $ (135) | $ (3,499) |
Basic: | |||
Continuing operations (in dollars per share) | $ (0.01) | $ (0.17) | $ 0.11 |
Discontinued operations (in dollars per share) | 0 | 0 | (4.55) |
Net Income, Basic (in dollars per share) | $ (0.01) | $ (0.17) | $ (4.44) |
Weighted average limited partner units - basic (in shares) | 38,689,041 | 38,656,559 | 38,658,881 |
Diluted: | |||
Continuing operations (in dollars per share) | $ (0.01) | $ (0.17) | $ 0.11 |
Discontinued operations (in dollars per share) | 0 | 0 | (4.55) |
Net Income, Diluted (in dollars per share) | $ (0.01) | $ (0.17) | $ (4.44) |
Weighted average limited partner units - diluted (in shares) | 38,689,041 | 38,656,559 | 38,658,881 |
CONSOLIDATED AND CONDENSED STAT
CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (loss) | $ (211) | $ (6,771) | $ (174,946) |
Changes in fair values of commodity cash flow hedges | 816 | 0 | 0 |
Comprehensive income (loss) | $ 605 | $ (6,771) | $ (174,946) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (DEFICIT) - USD ($) $ in Thousands | Total | CommonCommon | General Partner Amount | Accumulated Other Comprehensive Income | Time Based Restricted UnitsCommonCommon | Parent Net Investment |
Beginning balance at Dec. 31, 2018 | $ 288,432 | $ 258,085 | $ 6,627 | $ 23,720 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 39,032,237 | |||||
Increase (Decrease) in Partners' Capital | ||||||
Net Income (loss) | (174,946) | $ (171,447) | (3,499) | 0 | ||
Issuance of common units, net | (289) | $ (289) | ||||
Issuance of time-based restricted units (in shares) | 16,944 | |||||
Forfeiture of restricted units (in shares) | (154,288) | |||||
Cash distributions | (49,093) | $ (48,111) | (982) | |||
Excess purchase price over carrying value of acquired assets | (102,393) | (102,393) | ||||
Changes in fair values of commodity cash flow hedges | 0 | |||||
Deferred taxes on acquired assets and liabilities | 24,781 | 24,781 | ||||
Unit-based compensation | 1,424 | 1,424 | ||||
Purchase of treasury units | (392) | $ (392) | ||||
Purchase of treasury units (in shares) | (31,504) | |||||
Contribution to parent | (23,720) | (23,720) | ||||
Ending balance at Dec. 31, 2019 | (36,196) | $ (38,342) | 2,146 | 0 | ||
Ending balance (in shares) at Dec. 31, 2019 | 38,863,389 | |||||
Increase (Decrease) in Partners' Capital | ||||||
Net Income (loss) | (6,771) | $ (6,636) | (135) | 0 | ||
Issuance of time-based restricted units (in shares) | 81,000 | |||||
Forfeiture of restricted units (in shares) | (85,467) | |||||
Cash distributions | (5,317) | $ (5,211) | (106) | |||
Changes in fair values of commodity cash flow hedges | 0 | |||||
Unit-based compensation | 1,422 | 1,422 | ||||
Purchase of treasury units | (9) | $ (9) | ||||
Purchase of treasury units (in shares) | (7,748) | |||||
Ending balance at Dec. 31, 2020 | (46,871) | $ (48,776) | 1,905 | 0 | ||
Ending balance (in shares) at Dec. 31, 2020 | 38,851,174 | |||||
Increase (Decrease) in Partners' Capital | ||||||
Net Income (loss) | (211) | $ (207) | (4) | |||
Issuance of time-based restricted units (in shares) | 42,168 | |||||
Forfeiture of restricted units (in shares) | (83,436) | |||||
General partner contribution | 3 | 3 | ||||
Cash distributions | (791) | $ (775) | (16) | |||
Excess purchase price over carrying value of acquired assets | (1,350) | (1,350) | ||||
Changes in fair values of commodity cash flow hedges | 816 | $ 816 | ||||
Unit-based compensation | 384 | 384 | ||||
Purchase of treasury units | (17) | $ (17) | ||||
Purchase of treasury units (in shares) | (7,156) | |||||
Ending balance at Dec. 31, 2021 | $ (48,037) | $ (50,741) | $ 1,888 | $ 816 | $ 0 | |
Ending balance (in shares) at Dec. 31, 2021 | 38,802,750 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (211) | $ (6,771) | $ (174,946) |
Less: Loss from discontinued operations | 0 | 0 | 179,466 |
Income (loss) from continuing operations | (211) | (6,771) | 4,520 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 56,751 | 61,462 | 60,060 |
Amortization and write-off of deferred debt issue costs | 3,367 | 3,422 | 4,041 |
Amortization of premium on notes payable | 0 | (191) | (306) |
Deferred income tax expense | 2,432 | 1,169 | 1,360 |
(Gain) loss on disposition or sale of property, plant, and equipment | 534 | (9,788) | (13,332) |
Gain on involuntary conversion of property, plant and equipment | (196) | (4,907) | 0 |
Gain on retirement of senior unsecured notes | 0 | (3,484) | 0 |
Non-cash impact related to exchange of senior unsecured notes | 0 | (749) | 0 |
Derivative income | 5,593 | 8,209 | 5,137 |
Net cash paid for commodity derivatives | (4,984) | (8,669) | (4,466) |
Unit-based compensation | 384 | 1,422 | 1,424 |
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | |||
Accounts and other receivables | (31,448) | 30,741 | 62 |
Product exchange receivables | 0 | 0 | 166 |
Inventories | (8,334) | 5,264 | 21,493 |
Due from affiliates | 398 | 2,932 | 1,822 |
Other current assets | (3,552) | (5,733) | (254) |
Trade and other accounts payable | 14,331 | (7,318) | (898) |
Product exchange payables | 1,033 | (3,949) | (7,781) |
Due to affiliates | 1,389 | (1,035) | (1,469) |
Income taxes payable | (171) | 84 | 27 |
Other accrued liabilities | (2,236) | 4,144 | (3,017) |
Change in other non-current assets and liabilities | 649 | (1,470) | (543) |
Net cash provided by continuing operating activities | 35,729 | 64,785 | 68,046 |
Net cash provided by discontinued operating activities | 0 | 0 | 7,769 |
Net cash provided by operating activities | 35,729 | 64,785 | 75,815 |
Cash flows from investing activities: | |||
Payments for property, plant, and equipment | (16,059) | (28,622) | (30,621) |
Acquisitions, net of cash acquired | 0 | 0 | (23,720) |
Payments for plant turnaround costs | (4,109) | (1,478) | (5,677) |
Proceeds from sale of property, plant, and equipment | 643 | 25,154 | 20,660 |
Proceeds from involuntary conversion of property, plant and equipment | 284 | 7,550 | 5,031 |
Net cash provided by (used in) continuing investing activities | (19,241) | 2,604 | (34,327) |
Net cash provided by discontinued investing activities | 0 | 0 | 209,155 |
Net cash provided by (used in) investing activities | (19,241) | 2,604 | 174,828 |
Cash flows from financing activities: | |||
Payments of long-term debt | (333,790) | (333,637) | (724,000) |
Payments under finance lease obligations | (2,707) | (4,562) | (5,514) |
Proceeds from long-term debt | 316,500 | 282,019 | 638,000 |
Proceeds from issuance of common units, net of issuance related costs | 0 | 0 | (289) |
General partner contributions | 3 | 0 | 0 |
Excess purchase price over carrying value of acquired assets | 0 | 0 | (102,393) |
Purchase of treasury units | (17) | (9) | (392) |
Payments of debt issuance costs | (592) | (3,781) | (4,406) |
Cash distributions paid | (791) | (5,317) | (49,093) |
Net cash used in financing activities | (21,394) | (65,287) | (248,087) |
Net increase (decrease) in cash | (4,906) | 2,102 | 2,556 |
Cash at beginning of year | 4,958 | 2,856 | 300 |
Cash at end of year | $ 52 | $ 4,958 | $ 2,856 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | ORGANIZATION AND DESCRIPTION OF BUSINESS Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the U.S. Its four primary business lines include: terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil; land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and NGL marketing, distribution, and transportation services. The Partnership provides specialty services to major and independent oil and gas companies, independent refiners, large chemical companies, and other wholesale purchasers of certain petroleum products and by-products, with significant business concentrated around the U.S. Gulf Coast refinery complex, which is a major hub for petroleum refining, natural gas gathering and processing, and support services for the exploration and production industry. The petroleum products and by-products the Partnership gathers, transports, stores and markets are produced primarily by major and independent oil and gas companies who often rely on third parties, such as the Partnership, for the transportation and disposition of these products. |
Significant Accounting Policies
Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Practices | SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (a) Principles of Presentation and Consolidation The consolidated financial statements include the financial statements of the Partnership and its wholly-owned subsidiaries and equity method investees. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. In addition, the Partnership evaluates its relationships with other entities to identify whether they are variable interest entities under certain provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), 810-10 and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Partnership is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810-10. No such variable interest entities existed as of December 31, 2021 or 2020. Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of its membership interests in Arcadia Gas Storage, LLC, Cadeville Gas Storage LLC, Monroe Gas Storage Company, LLC and Perryville Gas Storage LLC (the "Natural Gas Storage Assets") to Hartree Cardinal Gas, LLC ("Hartree"), a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of the Natural Gas Storage Assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's credit facility. The Partnership concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the year ended December 31, 2019. See Note 5 for more information. (b) Product Exchanges The Partnership enters into product exchange agreements with third parties, whereby the Partnership agrees to exchange NGLs and sulfur with third parties. The Partnership records the balance of exchange products due to other companies under these agreements at quoted market product prices and the balance of exchange products due from other companies at the lower of cost or market. Cost is determined using the first-in, first-out ("FIFO") method. Product exchanges with the same counterparty are entered into in contemplation of one another and are combined. The net amount related to location differentials is reported in "Product sales" or "Cost of products sold" in the Consolidated Statements of Operations. (c) Inventories Inventories are stated at the lower of cost or market. Cost is generally determined by using the FIFO method for all inventories except lubricants and lubricants packaging inventories. Lubricants and lubricants packaging inventories cost is determined using standard cost, which approximates actual cost, computed on a FIFO basis. (d) Revenue Recognition Terminalling and Storage – Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Liquids – Revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services – Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Transportation – Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. (e) Equity Method Investments The Partnership uses the equity method of accounting for investments in unconsolidated entities where the ability to exercise significant influence over such entities exists. Investments in unconsolidated entities consist of capital contributions and advances plus the Partnership’s share of accumulated earnings as of the entities’ latest fiscal year-ends, less capital withdrawals and distributions. Equity method investments are subject to impairment under the provisions of ASC 323-10, which relates to the equity method of accounting for investments in common stock. No portion of the net income from these entities is included in the Partnership’s operating income. (f) Property, Plant, and Equipment Owned property, plant, and equipment is stated at cost, less accumulated depreciation. Owned buildings and equipment are depreciated using the straight-line method over the estimated lives of the respective assets. Equipment under finance leases is stated at the present value of minimum lease payments less accumulated amortization. Equipment under finance leases is amortized on a straight line basis over the estimated useful life of the asset. Routine maintenance and repairs are charged to expense while costs of betterments and renewals are capitalized. When an asset is retired or sold, its cost and related accumulated depreciation are removed from the accounts, and the difference between net book value of the asset and proceeds from disposition is recognized as gain or loss. (g) Goodwill and Other Intangible Assets Goodwill is subject to a fair-value based impairment test on an annual basis, or more often if events or circumstances indicate there may be impairment. The Partnership is required to identify its reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets. The Partnership is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. When assessing the recoverability of goodwill and other intangible assets, the Partnership may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount. After assessing qualitative factors, if the Partnership determines that it is not more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount, then performing a quantitative assessment is not required. If an initial qualitative assessment indicates that it is more likely than not the carrying amount exceeds the fair value of a reporting unit or other intangible asset, a quantitative analysis will be performed. The Partnership may also elect to bypass the qualitative assessment and proceed directly to a quantitative analysis depending on the facts and circumstances. Of the Partnership's four reporting units, the terminalling and storage, transportation, and sulfur services reporting units contain goodwill. In performing a quantitative analysis, recoverability of goodwill for each reporting unit is measured using a weighting of the discounted cash flow method and two market approaches (the guideline public company method and the guideline transaction method). The discounted cash flow model incorporates discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in assessing impairment in the absence of available transactional market evidence to determine the fair value. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital ("WACC"). The WACC considers market and industry data as well as company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Management, considering industry and company specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying amount, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Significant changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could give rise to future impairment. Changes to these estimates and assumptions can include, but may not be limited to, varying commodity prices, volume changes and operating costs due to market conditions and/or alternative providers of services. Applying this impairment review methodology, the Partnership considered the impact that COVID-19 had on our cash flows and the value our unit price during both 2021 and 2020 and elected to bypass the qualitative assessment and perform a quantitative assessment. Based upon the most recent annual review as of August 31, 2021, no goodwill impairment exists within the Partnership's reporting units for the year ended December 31, 2021. No goodwill impairment was recorded for the years ended December 31, 2020 or 2019. Other intangible assets that have finite lives are tested for impairment when events or circumstances indicate that the carrying value may not be recoverable. An impairment is indicated if the carrying amount of a long-lived intangible asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If impairment is indicated, the Partnership would record an impairment loss equal to the difference between the carrying value and the fair value of the asset. There were no intangible asset impairments for the years ended December 31, 2021, 2020 or 2019. (h) Debt Issuance Costs Debt issuance costs relating to the Partnership’s credit facility and senior notes are deferred and amortized over the terms of the debt arrangements and are shown, net of accumulated amortization, as a reduction of the related long-term debt. In connection with the issuance, amendment, expansion and restatement of debt arrangements, the Partnership incurred debt issuance costs of $592, $3,781 and $4,406 in the years ended December 31, 2021, 2020 and 2019, respectively. Amortization and write-off of debt issuance costs, which is included in interest expense, totaled $3,367, $3,422 and $4,041 for the years ended December 31, 2021, 2020 and 2019, respectively. Accumulated amortization amounted to $26,022 and $22,655 at December 31, 2021 and 2020, respectively. (i) Impairment of Long-Lived Assets In accordance with ASC 360-10, long-lived assets, such as property, plant and equipment, and intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. The Partnership identified triggering events related to a certain asset group in its transportation segment in 2021. The Partnership performed a recoverability test and concluded the estimated undiscounted cash flows expected to be generated by the asset group exceeded the carrying value of the asset group and no impairment was recorded. (j) Asset Retirement Obligations Under ASC 410-20, which relates to accounting requirements for costs associated with legal obligations to retire tangible, long-lived assets, the Partnership records an asset retirement obligation at present value based upon estimated costs to retire the asset in the period in which it is incurred by increasing the carrying amount of the related long-lived asset. In each subsequent period, the liability is accreted over time towards the ultimate obligation amount and the capitalized costs are depreciated over the useful life of the related asset. (k) Derivative Instruments and Hedging Activities In accordance with certain provisions of ASC 815-10 related to accounting for derivative instruments and hedging activities, all derivatives and hedging instruments are included in the Consolidated Balance Sheets as an asset or liability measured at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. If a derivative qualifies for hedge accounting, changes in the fair value can be offset against the change in the fair value of the hedged item through earnings or recognized in other comprehensive income until such time as the hedged item is recognized in earnings. Derivative instruments not designated as hedges are marked to market with all market value adjustments being recorded in the Consolidated Statements of Operations. (l) Use of Estimates Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the U.S. Actual results could differ from those estimates. (m) Environmental Liabilities and Litigation The Partnership’s policy is to accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. (n) Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in the Partnership’s existing accounts receivable. (o) Deferred Catalyst Costs The cost of the periodic replacement of catalysts is deferred and amortized over the catalyst’s estimated useful life, which ranges from 12 to 36 months. (p) Deferred Turnaround Costs The Partnership capitalizes the cost of major turnarounds and amortizes these costs over the estimated period to the next turnaround, which ranges from 12 to 36 months. (q) Income Taxes The Partnership is subject to the Texas margin tax, which is considered a state income tax, and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. MTI is a wholly owned subsidiary of the Partnership. Prior to the acquisition of MTI on January 2, 2019, MTI was a Qualified Subchapter S subsidiary (“QSub”) of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is disregarded and not treated as a corporation separate from its S Corporation parent for federal income tax purposes. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. Three states in which MTI was subject to taxation prior to the acquisition - Louisiana, New Jersey and Tennessee - do not recognize the federal S Corporation status and, therefore, taxed MTI on a C Corporation basis. Subsequent to the acquisition, the QSub election terminated resulting in MTI being taxed as a stand-alone C Corporation. The Partnership's financial statements recognize the current and deferred income tax consequences that result from MTI’s activities during the current period pursuant to the provisions of the FASB ASC 740 related to income taxes. As a result of the common control transaction with the Partnership, the deferred tax consequences of the changes in the tax bases of MTI’s assets and liabilities were included in equity under the provisions of ASC 740-20-45-11. With respect to the Partnership’s taxable subsidiary (MTI), income taxes are accounted for under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the ordinary course of business, there may be many transactions and calculations where the ultimate tax outcome is uncertain. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax laws. In accordance with the provisions of ASC 740, we use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. In the first step, “recognition”, the Partnership determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Partnership presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. In the second step, “measurement”, a tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement based upon management’s intent regarding negotiation and litigation. In evaluating all income tax positions for all open years, management has determined all positions are more likely than not to be sustained at full benefit based upon their technical merit under applicable tax laws. (r) Comprehensive Income |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS On January 1, 2021, the Partnership adopted FASB Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Accounting Standards Codification (“ASC”) Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions to general principles in ASC 740 and clarifies and amends existing guidance within U.S. GAAP. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements. On January 1, 2020, the Partnership adopted ASU 2016-13, "Financial Instruments - Credit Losses," which required the Partnership to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting , which will expand the scope of FASB ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard is effective for the Partnership's financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Partnership adopted this standard effective January 1, 2019. The result of this adoption did not have a material impact on the Partnership's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Lessor accounting under the new standard is substantially unchanged and substantially all of our leases will continue to be classified as operating leases under the new standard. Additional qualitative and quantitative disclosures, including significant judgments made by management are required. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to FASB ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership adopted this ASU on January 1, 2019, electing the transition option provided under ASU 2018-11. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS Martin Transport, Inc. Stock Purchase Agreement. On January 2, 2019, the Partnership acquired all of the issued and outstanding equity interests of MTI, a wholly-owned subsidiary of Martin Resource Management Corporation, which operates a fleet of trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 24 terminals located throughout the U.S. Gulf Coast and Southeastern U.S. for total consideration as follows: Purchase price 1 $ 135,000 Plus: Working Capital Adjustment 2,795 Less: Finance lease obligations assumed (11,682) Cash consideration paid $ 126,113 1 The stock purchase agreement also includes a $10,000 earn-out based on certain performance thresholds. The performance threshold related to financial results for the years ended December 31, 2020 and 2019 was not achieved, which resulted in a reduction in the potential earn-out by $6,666. For the year ended December 31, 2021, the performance threshold related to financial results was exceeded, resulting in an earn-out payment of $1,350, which, pursuant to the terms of the stock purchase agreement, will be paid in the second quarter of 2022. The transaction closed on January 2, 2019 and was effective as of January 1, 2019 and was funded with borrowings under the Partnership's credit facility. This acquisition is considered a transfer of net assets between entities under common control. The acquisition of MTI was recorded at the historical carrying value of the assets at the acquisition date, which were as follows: Accounts receivable, net $ 11,724 Inventories 1,138 Due from affiliates 1,042 Other current assets 897 Property, plant and equipment, net 25,383 Goodwill 489 Other noncurrent assets 362 Current installments of finance lease obligations (5,409) Accounts payable (2,564) Due to affiliates (482) Other accrued liabilities (2,588) Finance lease obligations, net of current installments (6,272) Historical carrying value of assets acquired $ 23,720 The excess purchase price over the historical carrying value of the assets at the acquisition date was $102,393 and was recorded as an adjustment to "Partners' capital (deficit)". The earn out-payment discussed above was recorded as additional excess purchase price over the historical carrying value of the assets, resulting in an adjustment to "Partners' capital (deficit)" of $1,350. |
Discontinued Operations And Div
Discontinued Operations And Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations And Divestitures | DISCONTINUED OPERATIONS AND DIVESTITURES Divestitures Divestiture of Mega Lubricants. On December 22, 2020, the Partnership completed the sale of its Mega Lubricants shored-based terminals business (“Mega Lubricants”) for $22,400. Mega Lubricants is engaged in the business of blending, manufacturing and delivering various marine application lubricants, sub-sea specialty fluids, and proprietary developed commercial and industrial products. The Partnership recorded a gain on the disposition of $10,101, which was included in "Other operating income, net" on the Partnership's Consolidated Statements of Operations. The proceeds from the transaction were used to reduce outstanding borrowings under the Partnership’s credit facility. The divestiture of Mega Lubricants did not qualify for discontinued operations presentation under the guidance of ASC 205-20. Divestiture of East Texas Pipeline. On August 12, 2019, the Partnership completed the sale of its East Texas Pipeline for $17,500. The Partnership recorded a gain on the disposition of $16,154, which was included in "Other operating income, net" on the Partnership's Consolidated Statements of Operations. The net proceeds were used to reduce outstanding borrowings under the Partnership's credit facility. The divestiture of the East Texas Pipeline assets did not qualify for discontinued operations presentation under the guidance of ASC 205-20. Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of the Natural Gas Storage Assets to Hartree, a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of these assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's credit facility. The Partnership concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the year ended December 31, 2019. The operating results, which are included in income (loss) from discontinued operations, were as follows: For the Year Ended December 31, 2019 Total revenues $ 22,836 Total costs and expenses and other, net, excluding depreciation and amortization (15,360) Depreciation and amortization (8,161) Other operating loss, net 1 (178,781) Other, net — Income (loss) from discontinued operations before income taxes (179,466) Income tax expense — Income (loss) from discontinued operations, net of income taxes $ (179,466) 1 The year ended December 31, 2019 includes a loss on the disposition of the Natural Gas Storage Assets of $178,781. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table disaggregates our revenue by major source: 2021 2020 2019 Terminalling and storage segment Lubricant product sales $ 103,809 $ 103,300 $ 122,257 Throughput and storage 75,223 80,864 87,397 $ 179,032 $ 184,164 $ 209,654 Transportation segment Land transportation $ 111,611 $ 88,652 $ 98,895 Inland transportation 29,536 40,507 54,834 Offshore transportation 3,167 3,333 5,893 $ 144,314 $ 132,492 $ 159,622 Sulfur service segment Sulfur product sales $ 32,416 $ 24,176 $ 30,135 Fertilizer product sales 100,827 72,172 69,771 Sulfur services 11,799 11,659 11,434 $ 145,042 $ 108,007 $ 111,340 Natural gas liquids segment Natural gas liquids product sales $ 414,043 $ 247,479 $ 366,502 $ 414,043 $ 247,479 $ 366,502 Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service. The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue. Terminalling and Storage Segment Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Throughput and storage revenue in the table above includes non-cancelable revenue arrangements that are under the scope of ASC 842, whereby the Partnership has committed certain Terminalling and Storage assets in exchange for a minimum fee. Natural Gas Liquids Segment NGL revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services Segment Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Transportation Segment Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. The table below includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 2022 2023 2024 2025 2026 Thereafter Total Terminalling and storage Throughput and storage $ 43,527 $ 42,041 $ 43,360 $ 44,661 $ 45,940 $ 251,349 $ 470,878 Natural Gas Services Natural Gas Liquids $ 6,047 $ 5,391 $ 5,406 $ 5,391 $ 3,131 $ — $ 25,366 Sulfur services Sulfur product sales 17,703 16,953 14,493 2,156 1,182 295 52,782 Total $ 67,277 $ 64,385 $ 63,259 $ 52,208 $ 50,253 $ 251,644 $ 549,026 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Components of inventories at December 31, 2021 and 2020 were as follows: 2021 2020 Natural gas liquids $ 20,034 $ 27,878 Sulfur 612 24 Fertilizer 13,005 10,854 Lubricants 23,876 11,002 Other 4,593 4,364 $ 62,120 $ 54,122 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT, AND EQUIPMENT At December 31, 2021 and 2020, property, plant and equipment consisted of the following: Depreciable Lives 2021 2020 Land — $ 21,422 $ 21,459 Improvements to land and buildings 10-25 years 132,064 135,227 Storage equipment 5-50 years 122,300 121,437 Marine vessels 4-25 years 183,414 179,666 Operating plant and equipment 3-50 years 360,122 356,293 Furniture, fixtures and other equipment 3-20 years 13,727 14,209 Transportation equipment 3-7 years 50,961 49,836 Construction in progress 14,760 10,981 $ 898,770 $ 889,108 Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $52,289, $55,817 and $53,856, respectively, which includes amortization of fixed assets acquired under capital lease obligations of $164, $1,755, and $2,686. Gross assets under capital leases were $1,071 and $10,352 at December 31, 2021 and 2020, respectively. Accumulated amortization associated with capital leases was $364 and $3,703 at December 31, 2021 and 2020, respectively. Additions to property, plant and equipment included in accounts payable at December 31, 2021, 2020 and 2019 were $3,229, $468, and $3,791, respectively. Equipment purchased under capital lease obligations was $0, $83, and $1,308 for the years ended December 31, 2021, 2020, and 2019, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL The following table represents the goodwill balance by reporting unit at December 31, 2021 and 2020 as follows: 2021 2020 Carrying amount of goodwill: Terminalling and storage $ 10,985 $ 10,985 Sulfur services 5,349 5,349 Transportation 489 489 Total goodwill $ 16,823 $ 16,823 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. The Partnership's leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows: 2021 2020 2019 Operating lease cost $ 9,266 $ 10,672 $ 10,805 Finance lease cost: Amortization of right-of-use assets 164 1,755 2,686 Interest on lease liabilities 26 294 671 Short-term lease cost 10,290 13,187 13,756 Variable lease cost 115 109 92 Total lease cost $ 19,861 $ 26,017 $ 28,010 Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to leases were as follows: 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,678 $ 23,996 $ 24,526 Operating cash flows from finance leases 26 294 671 Financing cash flows from finance leases 2,707 4,562 5,514 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,668 $ 7,779 $ 9,122 Finance leases 0 83 1,309 Supplemental balance sheet information related to leases was as follows at December 31, 2021 and 2020: 2021 2020 Operating Leases Operating lease right-of-use assets $ 21,861 $ 22,260 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 6,600 $ 7,529 Operating lease liabilities 15,704 15,181 Total operating lease liabilities $ 22,304 $ 22,710 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 10,352 Accumulated depreciation (364) (3,703) Property, plant and equipment, net $ 707 $ 6,649 Current installments of finance lease obligations $ 280 $ 2,707 Finance lease obligations 9 289 Total finance lease obligations $ 289 $ 2,996 Weighted Average Remaining Lease Term (years) Operating leases 6.46 5.87 Finance leases 0.97 1.39 Weighted Average Discount Rate Operating leases 4.96 % 5.04 % Finance leases 5.74 % 6.04 % The Partnership’s future minimum lease obligations as of December 31, 2021 consist of the following: Operating Leases Finance Leases Year 1 $ 7,501 $ 289 Year 2 4,672 9 Year 3 3,137 — Year 4 2,460 — Year 5 1,602 — Thereafter 6,820 — Total 26,192 298 Less amounts representing interest costs (3,888) (9) Total lease liability $ 22,304 $ 289 As of December 31, 2021, we have additional operating leases for land, buildings and equipment that have not yet commenced of $1,184. These operating leases will commence during the first quarter of 2022 with lease terms of 3 to 5 years. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2021 are as follows: 2022 - $17,093; 2023 - $14,425; 2024 - $14,425; 2025 - $13,858; 2026 - $8,173; subsequent years - $30,670. |
Leases | LEASES The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. The Partnership's leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows: 2021 2020 2019 Operating lease cost $ 9,266 $ 10,672 $ 10,805 Finance lease cost: Amortization of right-of-use assets 164 1,755 2,686 Interest on lease liabilities 26 294 671 Short-term lease cost 10,290 13,187 13,756 Variable lease cost 115 109 92 Total lease cost $ 19,861 $ 26,017 $ 28,010 Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to leases were as follows: 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,678 $ 23,996 $ 24,526 Operating cash flows from finance leases 26 294 671 Financing cash flows from finance leases 2,707 4,562 5,514 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,668 $ 7,779 $ 9,122 Finance leases 0 83 1,309 Supplemental balance sheet information related to leases was as follows at December 31, 2021 and 2020: 2021 2020 Operating Leases Operating lease right-of-use assets $ 21,861 $ 22,260 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 6,600 $ 7,529 Operating lease liabilities 15,704 15,181 Total operating lease liabilities $ 22,304 $ 22,710 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 10,352 Accumulated depreciation (364) (3,703) Property, plant and equipment, net $ 707 $ 6,649 Current installments of finance lease obligations $ 280 $ 2,707 Finance lease obligations 9 289 Total finance lease obligations $ 289 $ 2,996 Weighted Average Remaining Lease Term (years) Operating leases 6.46 5.87 Finance leases 0.97 1.39 Weighted Average Discount Rate Operating leases 4.96 % 5.04 % Finance leases 5.74 % 6.04 % The Partnership’s future minimum lease obligations as of December 31, 2021 consist of the following: Operating Leases Finance Leases Year 1 $ 7,501 $ 289 Year 2 4,672 9 Year 3 3,137 — Year 4 2,460 — Year 5 1,602 — Thereafter 6,820 — Total 26,192 298 Less amounts representing interest costs (3,888) (9) Total lease liability $ 22,304 $ 289 As of December 31, 2021, we have additional operating leases for land, buildings and equipment that have not yet commenced of $1,184. These operating leases will commence during the first quarter of 2022 with lease terms of 3 to 5 years. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2021 are as follows: 2022 - $17,093; 2023 - $14,425; 2024 - $14,425; 2025 - $13,858; 2026 - $8,173; subsequent years - $30,670. |
Leases | LEASES The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. The Partnership's leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows: 2021 2020 2019 Operating lease cost $ 9,266 $ 10,672 $ 10,805 Finance lease cost: Amortization of right-of-use assets 164 1,755 2,686 Interest on lease liabilities 26 294 671 Short-term lease cost 10,290 13,187 13,756 Variable lease cost 115 109 92 Total lease cost $ 19,861 $ 26,017 $ 28,010 Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to leases were as follows: 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,678 $ 23,996 $ 24,526 Operating cash flows from finance leases 26 294 671 Financing cash flows from finance leases 2,707 4,562 5,514 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,668 $ 7,779 $ 9,122 Finance leases 0 83 1,309 Supplemental balance sheet information related to leases was as follows at December 31, 2021 and 2020: 2021 2020 Operating Leases Operating lease right-of-use assets $ 21,861 $ 22,260 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 6,600 $ 7,529 Operating lease liabilities 15,704 15,181 Total operating lease liabilities $ 22,304 $ 22,710 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 10,352 Accumulated depreciation (364) (3,703) Property, plant and equipment, net $ 707 $ 6,649 Current installments of finance lease obligations $ 280 $ 2,707 Finance lease obligations 9 289 Total finance lease obligations $ 289 $ 2,996 Weighted Average Remaining Lease Term (years) Operating leases 6.46 5.87 Finance leases 0.97 1.39 Weighted Average Discount Rate Operating leases 4.96 % 5.04 % Finance leases 5.74 % 6.04 % The Partnership’s future minimum lease obligations as of December 31, 2021 consist of the following: Operating Leases Finance Leases Year 1 $ 7,501 $ 289 Year 2 4,672 9 Year 3 3,137 — Year 4 2,460 — Year 5 1,602 — Thereafter 6,820 — Total 26,192 298 Less amounts representing interest costs (3,888) (9) Total lease liability $ 22,304 $ 289 As of December 31, 2021, we have additional operating leases for land, buildings and equipment that have not yet commenced of $1,184. These operating leases will commence during the first quarter of 2022 with lease terms of 3 to 5 years. The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2021 are as follows: 2022 - $17,093; 2023 - $14,425; 2024 - $14,425; 2025 - $13,858; 2026 - $8,173; subsequent years - $30,670. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 2 December 31, 2021 2020 Commodity derivative contracts, net $ — $ (207) The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: • Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. • Current and non-current portion of long-term debt: The carrying amount of the credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The estimated fair value of the 2021 Notes, 2024 Notes, and 2025 Notes (collectively, the "senior notes") is considered Level 2, as the fair value is based upon quoted prices for identical liabilities in markets that are not active. December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair 2021 Notes $ — $ — $ 28,790 $ 28,581 2024 Notes $ 51,317 $ 55,220 $ 50,173 $ 55,214 2025 Notes $ 290,667 $ 307,146 $ 290,250 $ 288,692 Total $ 341,984 $ 362,366 $ 369,213 $ 372,487 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Partnership’s results of operations could be materially impacted by changes in commodity prices and interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. At the time derivative contracts are entered into, the Partnership assesses whether the nature of the instrument qualifies for hedge accounting treatment according to the requirements of ASC 815 – Derivatives and Hedging . For those transactions designated as hedging instruments for accounting purposes, the Partnership documents all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. The Partnership also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows or fair value of hedged items. All derivatives and hedging instruments are included on the balance sheet as an asset or a liability measured at fair value. Changes in fair value for hedging instruments are recognized on the balance sheet through Accumulated Other Comprehensive Income ("AOCI"). Settlements related to effective hedging relationships will be reclassified from AOCI to earnings during the period in which the hedged transactions are reflected on the income statement. From time to time, derivatives designated for hedge accounting may be closed prior to contract expiration. The accounting treatment of closed positions depends on whether the closure occurred due to the hedged transaction occurring early or if the hedged transaction is still expected to occur as originally forecasted. For hedged transactions that occur early, the closure results in the realized gain or loss from closure being recognized in the same period the accelerated hedged transaction affects earnings. For hedged transactions that are still expected to occur as originally forecasted, the closure results in the realized gain or loss being deferred until the hedged transaction affects earnings. If it is determined that hedged transactions associated with cash flow hedges are no longer probable to occur, the gain or loss associated with the instrument is recognized immediately into earnings. From time to time, we may have derivative financial instruments for which we do not elect hedge accounting. Changes in fair value for derivatives not designated as hedges are recognized as gains and losses in the earnings of the periods in which they occur. (a) Commodity Derivative Instruments The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price. The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure. In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership enters into hedging transactions to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. At December 31, 2021, the Partnership has instruments totaling a gross notional quantity of 0 barrels. At December 31, 2020, the Partnership had instruments totaling a gross notional quantity of 137,000 barrels settling during the period from January 31, 2021 through February 28, 2021. These instruments settle against the applicable pricing source for each grade and location. For information regarding gains and losses on commodity derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below. (b) Tabular Presentation of Gains and Losses on Derivative Instruments The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated Balance Sheets: Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location December 31, 2021 December 31, 2020 Balance Sheet Location December 31, 2021 December 31, 2020 Derivatives designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ — Fair value of derivatives $ — $ — Derivatives not designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ — Fair value of derivatives $ — $ 207 The following table summarizes the loss recognized in AOCI at December 31, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the year ended December 31, 2021 for derivative financial instruments designated as cash flow hedges: Amount of Gain (Loss) Recognized in AOCI Location of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income 2021 2020 2021 2020 Commodity contracts $ 816 $ — Cost of products sold $ (3,768) $ — Total $ 816 $ — $ (3,768) $ — The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the year ended December 31, 2021: Location of Gain (Loss) Amount of Gain (Loss) Recognized in 2021 2020 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ (1,825) $ (8,209) Total effect of derivatives not designated as hedging instruments $ (1,825) $ (8,209) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSAs of December 31, 2021, Martin Resource Management Corporation owned 6,114,532 of the Partnership’s common units representing approximately 15.8% of the Partnership’s outstanding limited partnership units. Martin Resource Management Corporation controls the Partnership's general partner by virtue of owning 100% of the membership interests in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2% general partner interest in the Partnership. The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management Corporation’s ownership as of December 31, 2021 of approximately 15.8% of the Partnership’s outstanding limited partnership units, effectively gives Martin Resource Management Corporation the ability to veto some of the Partnership’s actions and to control the Partnership’s management. The following is a description of the Partnership’s material related party agreements: Omnibus Agreement Omnibus Agreement . The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management Corporation that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management Corporation and the Partnership’s use of certain Martin Resource Management Corporation trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation. Non-Competition Provisions . Martin Resource Management Corporation has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of: • providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; • providing land and marine transportation of petroleum products, by-products, and chemicals; • distributing NGLs; and • manufacturing and selling sulfur-based fertilizer products and other sulfur-related products. This restriction does not apply to: • the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates; • any business operated by Martin Resource Management Corporation, including the following: ◦ distributing asphalt, marine fuel and other liquids; ◦ providing shore-based marine services in Texas, Louisiana, Mississippi, and Alabama; ◦ operating a crude oil gathering business in Stephens, Arkansas; ◦ providing crude oil gathering and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; ◦ providing crude oil marketing and transportation from the well head to the end market; ◦ operating an environmental consulting company; ◦ supplying employees and services for the operation of the Partnership's business; and ◦ operating, solely for our account, the asphalt facilities in each of Hondo, South Houston and Port Neches, Texas and Omaha, Nebraska. • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of less than $5,000; • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of $5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the Conflicts Committee; and • any business that Martin Resource Management Corporation acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $5,000 or more and represents less than 20% of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business. Services. Under the Omnibus Agreement, Martin Resource Management Corporation provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management Corporation for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. Effective January 1, 2021, through December 31, 2021, the board of directors of our general partner approved an annual reimbursement amount for indirect expenses of $14,386. The Partnership reimbursed Martin Resource Management Corporation for $14,386, $16,410 and $16,657 of indirect expenses for the years ended December 31, 2021, 2020 and 2019, respectively. The board of directors of our general partner will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management Corporation provides to the Partnership, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions the Partnership shares with Martin Resource Management Corporation retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management Corporation’s services will terminate if Martin Resource Management Corporation ceases to control the general partner of the Partnership. Related Party Transactions . The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management Corporation without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management Corporation that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above. License Provisions. Under the Omnibus Agreement, Martin Resource Management Corporation has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates. Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management Corporation. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation. Such amendments were approved by the Conflicts Committee. The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management Corporation for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management Corporation. Master Transportation Services Agreement Master Transportation Services Agreement. MTI, a wholly owned subsidiary of the Partnership, is a party to a master transportation services agreement effective January 1, 2019, with certain wholly owned subsidiaries of Martin Resource Management Corporation. Under the agreement, MTI agreed to transport Martin Resource Management Corporation's petroleum products and by-products. Term and Pricing. The agreement will continue unless either party terminates the agreement by giving at least 30 days' written notice to the other party. The rates under the agreement are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list. Indemnification. MTI has agreed to indemnify Martin Resource Management Corporation against all claims arising out of the negligence or willful misconduct of MTI and its officers, employees, agents, representatives and subcontractors. Martin Resource Management Corporation has agreed to indemnify MTI against all claims arising out of the negligence or willful misconduct of Martin Resource Management Corporation and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of MTI and Martin Resource Management Corporation, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct. Terminal Services Agreements Diesel Fuel Terminal Services Agreement. Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution. At such time, the per-gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index. This agreement was further amended on April 1, 2019 and January 1, 2020 to modify its minimum throughput requirements and throughput fees. The term of this agreement is currently evergreen and it will continue on a month to month basis until terminated by either party by giving 60 days’ written notice. Miscellaneous Terminal Services Agreements. The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index. Marine Agreements Marine Transportation Agreement . The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management Corporation on a spot-contract basis at applicable market rates. Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management Corporation are based on applicable market rates. Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management Corporation dated November 1, 2002, under which Martin Resource Management Corporation provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of the Platt's U.S. Gulf Coast Index for #2 Fuel Oil. Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management Corporation. Other Agreements Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 20, 2021, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement expires November 25, 2031. Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel. Any additional barrels are processed at a modified price per barrel. In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement. Further, certain capital improvements, to the extent requested by Cross, are reimbursed through a capital recovery fee. As of December 31, 2019, the annual capital recovery fee reimbursement of $2,088 expired. An additional $2,586 of capital recovery fee reimbursement expired on December 31, 2020. All of these fees (other than the fuel surcharge) are subject to escalation annually based upon two-thirds of any increase in the Consumer Price Index for a specified annual period. In no event shall the fees charged under the agreement ever decrease below the amounts which existed as of October 20, 2021. Also, the Partnership renegotiated a crude transportation contract set to expire in the first half of 2022 resulting in a reduction in revenue of $2,145 annually beginning January 1, 2020. East Texas Mack Leases. MTI leases equipment, including tractors and trailers, from East Texas Mack Sales ("East Texas Mack"). Certain of our directors or officers are owners of East Texas Mack, including entities affiliated with Ruben Martin, who owns approximately 46% of the issued and outstanding stock of East Texas Mack. Amounts paid to East Texas Mack for tractor and trailer lease payments and lease residuals for the fiscal years ended December 31, 2021, 2020 and 2019 were approximately $1,089, $650, and $875, respectively. Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management Corporation for the provision of other services or the purchase of other goods. The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding caption of the Consolidated Statements of Operations and do not reflect a statement of profits and losses for related party transactions. The impact of related party revenues from sales of products and services is reflected in the Consolidated Statements of Operations as follows: Revenues: 2021 2020 2019 Terminalling and storage $ 62,677 $ 63,823 $ 71,733 Transportation 20,046 21,997 24,243 Product sales: Sulfur services 109 60 54 Terminalling and storage 370 257 877 479 317 931 $ 83,202 $ 86,137 $ 96,907 The impact of related party cost of products sold is reflected in the Consolidated Statements of Operations as follows: Cost of products sold: Sulfur services $ 9,980 $ 10,519 $ 10,765 Terminalling and storage 27,866 18,429 23,859 $ 37,846 $ 28,948 $ 34,624 The impact of related party operating expenses is reflected in the Consolidated Statements of Operations as follows: Operating expenses: Transportation $ 55,382 $ 55,786 $ 61,376 Natural gas liquids 2,038 2,003 3,446 Sulfur services 4,411 4,489 4,810 Terminalling and storage 16,776 17,797 18,562 $ 78,607 $ 80,075 $ 88,194 The impact of related party selling, general and administrative expenses is reflected in the Consolidated Statements of Operations as follows: Selling, general and administrative: Transportation $ 6,996 $ 7,358 $ 7,107 Natural gas liquids 4,590 2,397 2,804 Sulfur services 3,276 3,080 2,850 Terminalling and storage 3,370 3,403 3,083 Indirect overhead allocation, net of reimbursement 14,692 16,648 16,778 $ 32,924 $ 32,886 $ 32,622 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Components of "Intangibles and other assets, net" at December 31, 2021 and 2020 were as follows: 2021 2020 Catalyst and turnaround costs $ 687 $ 803 Other intangible assets 358 586 Other 1,153 1,416 $ 2,198 $ 2,805 Other intangible assets consist of technology-based assets. Amortization expense, included in "Depreciation and amortization" on the Partnership's Consolidated Statements of Operations includes amortization of intangible assets, turnaround expenses, and deferred charges. Aggregate amortization expense included in continuing operations was $4,085, $5,235, and $5,797, for the years ended December 31, 2021, 2020 and 2019, respectively. Estimated amortization expense for the years subsequent to December 31, 2021 are as follows: 2022 - $4,403; 2023 - $661; 2024 - $266; 2025 - $84; 2026 - $1; subsequent years - $0. Components of "Other accrued liabilities" at December 31, 2021 and 2020 were as follows: 2021 2020 Accrued interest $ 15,135 $ 16,104 Asset retirement obligations 261 1,692 Property and other taxes payable 4,631 4,869 Accrued payroll 2,973 3,244 Operating lease liabilities 6,600 7,529 Other 250 969 $ 29,850 $ 34,407 The schedule below summarizes the changes in our asset retirement obligations: Year Ended December 31, 2021 2020 (In thousands) Beginning asset retirement obligations $ 8,759 $ 8,936 Revisions to existing liabilities 1 — 918 Accretion expense 375 410 Liabilities settled (62) (1,505) Ending asset retirement obligations 9,072 8,759 Current portion of asset retirement obligations 2 (261) (1,692) Long-term portion of asset retirement obligations 3 $ 8,811 $ 7,067 1 Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. 2 The current portion of asset retirement obligations is included in "Other current liabilities" on the Partnership's Consolidated Balance Sheets. 3 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated Balance Sheets. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT At December 31, 2021 and 2020, long-term debt consisted of the following: 2021 2020 $275,000 1 Credit facility at variable interest rate (5.00% 1 weighted average at December 31, 2021), due August 2023 4 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $2,613 and $3,826, respectively 2 $ 156,887 $ 144,174 $400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $0 and $— respectively, including unamortized premium of $0 and $344, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, and $335,666 refinanced as part of the August 2020 Exchange offer, $28,790 repaid at maturity in February 2021, unsecured 2,3,4,5 — 28,790 $53,750 Senior notes, due February 2024, 10.0% interest, net of unamortized debt issuance costs of $2,433 and $3,577, respectively 2,3 $ 51,317 $ 50,173 $291,970 Senior notes, due February 2025, 11.5% interest, net of unamortized debt issuance costs of $1,303 and $1,720, respectively 2,3 $ 290,667 $ 290,250 Total 498,871 513,387 Less: current portion — (28,790) Total long-term debt, net of current portion $ 498,871 $ 484,597 Current installments of finance lease obligations $ 280 $ 2,707 Finance lease obligations 9 289 Total finance lease obligations $ 289 $ 2,996 1 Interest rate fluctuates based on LIBOR plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. All amounts outstanding at December 31, 2021 were at LIBOR plus an applicable margin of 4.00%, with LIBOR having a floor of 1.00%. The applicable margin for revolving loans that are LIBOR loans currently ranges from 2.75% to 4.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.75% to 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make distributions; make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). The credit facility was amended July 16, 2021 to, among other things, reduce the commitments thereunder from $300,000 to $275,000. 2 The Partnership was in compliance with all debt covenants as of December 31, 2021. 3 The indentures for each of the outstanding senior notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. 4 On February 15, 2021, our 2021 Notes matured and we retired the outstanding balance of $28,790 using proceeds from our credit facility. 5 In March 2020, the Partnership repurchased on the open market an aggregate $9,344 of the 2021 Notes, resulting in a gain on retirement of $3,484. |
Partners' Capital (Deficit)
Partners' Capital (Deficit) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Partners' Capital (Deficit) | PARTNERS' CAPITAL (DEFICIT) As of December 31, 2021, partners’ capital consisted of 38,802,750 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owned 6,114,532 of the Partnership's common limited partnership units representing approximately 15.8% of the Partnership's outstanding common limited partnership units. MMGP, the Partnership's general partner, owns the 2% general partnership interest. The Partnership Agreement contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts. Impact on Partners' Capital (Deficit) Related to Transactions Between Entities Under Common Control Under ASC 805, assets and liabilities transferred between entities under common control are accounted for at the historical cost of those entities' ultimate parent, in a manner similar to a pooling of interests. Any difference in the amount paid by the transferee versus the historical cost of the assets transferred is recorded as an adjustment to equity (contribution or distribution) by the transferee. This is in contrast with a business combination between unrelated parties, where assets and liabilities are recorded at their fair values at the acquisition date, with any excess of amounts paid over the fair value representing goodwill. From time to time, the most recent being in 2019, the Partnership has entered into common control acquisitions from Martin Resource Management Corporation. The consideration transferred totaling $552,123 exceeds the historical cost of the net assets received. This excess of the purchase price over the historical cost of the net assets received has resulted in cumulative distributions of $289,084 reflected as reductions to Partners' capital. Incentive Distribution Rights MMGP holds a 2% general partner interest and, until November 23, 2021, MMGP held certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. On November 23, 2021, MMGP contributed to the Partnership all of the outstanding IDRs for no consideration, whereupon the IDRs were cancelled and cease to exist (the “IDR Elimination”). Until the IDR Elimination, the Partnership was required to distribute all of its available cash from operating surplus, as previously defined in the Partnership Agreement. For the years ended December 31, 2021, 2020 and 2019, the general partner was allocated no incentive distributions. Distributions of Available Cash The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Net Income per Unit The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: Years Ended December 31, 2021 2020 2019 Continuing operations: Income (loss) from continuing operations $ (211) $ (6,771) $ 4,520 Less general partner’s interest in net income (loss): Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest 16 61 (20) General partner interest in undistributed income (loss) (20) (196) 111 Less income (loss) allocable to unvested restricted units — (21) (1) Limited partners’ interest in net income (loss) $ (207) $ (6,615) $ 4,430 Years Ended December 31, 2021 2020 2019 Discontinued operations: Loss from discontinued operations $ — $ — $ (179,466) Less general partner’s interest in net income (loss): Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest — — 806 General partner interest in undistributed loss — — (4,396) Less income allocable to unvested restricted units — — 42 Limited partners’ interest in net loss $ — $ — $ (175,918) The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income (loss) from continuing and discontinued operations to total net income (loss). The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Years Ended December 31, 2021 2020 2019 Basic weighted average limited partner units outstanding 38,689,041 38,656,559 38,658,881 Dilutive effect of restricted units issued — — — Total weighted average limited partner diluted units outstanding 38,689,041 38,656,559 38,658,881 All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the period presented. All common unit equivalents were antidilutive for the years ended December 31, 2021, 2020 and 2019 because the limited partners were allocated a net loss in this period. |
Unit Based Awards - Long-Term I
Unit Based Awards - Long-Term Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Unit Based Awards - Long-Term Incentive Plans | UNIT BASED AWARDS - LONG-TERM INCENTIVE PLANS The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated financial statements in accordance with certain provisions of ASC 718. Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated financial statements with respect to these plans are as follows: For the Year Ended December 31, 2021 2020 2019 Restricted unit awards Employees $ 194 $ 1,204 $ 1,226 Non-employee directors 190 — — Phantom unit Awards Employees 415 — — Non-employee directors — 218 198 Total unit-based compensation expense $ 799 $ 1,422 $ 1,424 Long-Term Incentive Plans The Partnership's general partner has long-term incentive plans for employees and directors of the general partner and its affiliates who perform services for the Partnership. Phantom Unit Plan On July 21, 2021, the board of directors of the general partner of the Partnership and the compensation committee of the general partner’s board of directors (the "Compensation Committee") approved the Martin Midstream Partners L.P. 2021 Phantom Unit Plan (the “Plan”), effective as of the same date. The Plan permits the awards of phantom units and phantom unit appreciation rights (collectively, "phantom unit awards") to any employee or non-employee director of the Partnership, including its executive officers. The awards may be time-based or performance-based and will be paid, if at all, in cash. The award of a phantom unit entitles the participant to a cash payment equal to the value of the phantom unit on the vesting date or dates, which value is the fair market value of a common unit of the Partnership (a “Unit”) on such vesting date or dates. The award of a phantom unit appreciation right entitles the recipient to a cash payment equal to the difference between the value of a phantom unit on the vesting date or dates in excess of the value assigned by the Compensation Committee to the phantom unit as of the grant date. Phantom units and phantom unit appreciation rights granted to participants do not confer upon participants any right to a Unit. On July 21, 2021, the Compensation Committee approved forms of time-based award agreements for phantom units and phantom unit appreciation rights, both of which awards vest in full on the third anniversary of the grant date. The grant date value of a phantom unit under a phantom unit appreciation right award is equal to the average of the closing price for a Unit during the 20 trading days immediately preceding the grant date of the award. Generally, vesting of an award is subject to a participant remaining continuously employed with the Partnership through the vesting date. However, if prior to the vesting date (i) a participant is terminated without cause (as defined in the award agreement) or terminates employment after the participant has attained both the age of 65 and ten years of employment (“retirement-eligible”), a prorated portion of the award will vest and be paid in cash no later than the 30 th day following such termination date (subject to a six-month delay in payment for certain retirement-eligible participants) or (ii) there is a change in control of the Partnership (as defined in the Plan), the award will vest in full and be paid in cash no later than the 30 th day following the date of the change of control; provided, that the participant has been in continuous employment through the termination or change in control date, as applicable. On July 21, 2021, 620,000 phantom units and 1,245,000 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership. Phantom unit awards are recorded in operating expense and selling, general and administrative expense based on the fair value of the vested portion of the awards on the balance sheet date. The fair value of these awards is updated at each balance sheet date and changes in the fair value of the vested portions of the awards are recorded as increases or decreases to compensation expense within operating expense and selling, general and administrative expense in the Consolidated Statements of Operations. All of the Partnership's outstanding phantom unit awards at December 31, 2021 met the criteria to be treated under liability classification in accordance with ASC 718, given that these awards will settle in cash on the vesting date. Compensation expense for the phantom awards is based on the fair value of the units as of the balance sheet date as further discussed below, and such costs are recognized ratably over the service period of the awards. As the fair value of liability awards is required to be re-measured each period end, stock compensation expense amounts recognized in future periods for these awards will vary. The estimated future cash payments of these awards are presented as liabilities within "Other current liabilities" and "Other long-term obligations" in the Consolidated Balance Sheets. As of December 31, 2021, there was a total of $1,233 of unrecognized compensation costs related to non-vested phantom unit awards. These costs are expected to be recognized over a remaining life of 2.56 years. The fair value of the phantom unit awards was estimated using a Monte Carlo valuation model as of the balance sheet date. The Monte Carlo valuation model is based on random projections of stock price paths and must be repeated numerous times to achieve a probabilistic assessment. Expected volatility was calculated based on the historical volatility of the Partnership’s common units as well as set of peer companies. Restricted Unit Plan On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan (the “2017 LTIP”). The 2017 LTIP currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The 2017 LTIP is administered by the Compensation Committee. A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the 2017 LTIP containing such terms as the Compensation Committee shall determine under the 2017 LTIP. With respect to time-based restricted units ("TBRUs"), the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("PBRUs"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRUs are earned only upon our achievement of an objective performance measure for the performance period. PBRUs which vest are payable in common units. Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement. The restricted units issued to directors generally vest in equal annual installments over a four-year period. On February 22, 2021, the Partnership issued 14,056 TBRUs to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 3,514 units on January 24, 2022, 2023, 2024, and 2025. On March 1, 2018, the Partnership issued 301,550 TBRUs and 317,925 PBRUs to certain employees of Martin Resource Management Corporation. The TBRUs vested in equal installments over a three-year service period. The PBRUs would have vested at the conclusion of a three-year performance period based on certain performance targets. In addition, the PBRUs awarded on March 1, 2018 would have only vested if the grantee was employed by Martin Resource Management Corporation on March 31, 2021. However, the performance conditions related to the PBRUs awarded on March 1, 2018 were not achieved and the Partnership treated these units as forfeited at expiration on March 31, 2021. As such, the Partnership did not recognize compensation expense related to these units. The restricted units are valued at their fair value at the date of grant, which is equal to the market value of common units on such date. A summary of the restricted unit activity for the year ended December 31, 2021 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of year 273,424 $ 10.52 Granted (TBRU) 42,168 $ 2.49 Vested (117,280) $ 11.96 Forfeited (83,436) $ 13.90 Non-Vested, end of year 114,876 $ 3.65 Aggregate intrinsic value, end of year $ 306 A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the years ended December 31, 2021, 2020 and 2019 is provided below: For the Year Ended 2021 2020 2019 Aggregate intrinsic value of units vested $ 257 $ 151 $ 1,351 Fair value of units vested $ 1,418 $ 1,427 $ 1,551 As of December 31, 2021, there was $248 of unrecognized compensation cost related to non-vested time-based restricted units. That cost is expected to be recognized over a weighted-average period of 2.12 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) from operations for the years ended December 31, 2021, 2020 and 2019 are as follows: 2021 2020 2019 Current: Federal $ 455 $ (174) $ 174 State 493 741 366 948 567 540 Deferred: Federal 2,142 1,027 882 State 290 142 478 2,432 1,169 1,360 Total income tax expense $ 3,380 $ 1,736 $ 1,900 The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. The Texas margin tax is considered a state income tax and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as income tax, and therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $300, $468 and $458 were recorded in income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively. MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (“Taxable Subsidiary”). Prior to the acquisition of MTI on January 2, 2019, MTI was a QSub of Martin Resource Management Corporation, a qualifying S Corporation. A QSub is not treated as a separate corporation for federal income tax purposes as it is deemed liquidated into its S Corporation parent. S Corporations are generally not subject to income taxes because income and losses flow through to shareholders and are reported on their individual returns. The principal component of the difference between the expected state tax expense and actual state tax expense relates to taxes incurred in states that do not recognize S corporation status. Subsequent to the acquisition, the QSub election terminated resulting in MTI being taxed as a stand-alone C Corporation. Total income tax expense relating to the operation of the Taxable Subsidiary of $3,080 and $1,268 was recorded in income tax expense for the years ended December 31, 2021 and 2020, respectively. The income tax expense from the Taxable Subsidiary operations for the years ended December 31, 2021 and 2020 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes of the Taxable Subsidiary) as follows: 2021 2020 "Expected" tax expense $ 2,223 $ 361 Increase in income taxes resulting from: State income taxes, net of federal income tax expense 382 327 Other non-deductible items 384 472 Other, net 91 108 Actual tax expense $ 3,080 $ 1,268 Cash paid for income taxes was $1,232, $416 and $515 for the years ended December 31, 2021, 2020 and 2019, respectively. Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows: 2021 2020 Deferred tax assets: Bad debt reserves $ 26 $ 59 Goodwill and intangibles 12,523 13,893 Employee benefits 57 244 Interest expense — — Tax loss carryforwards 10,676 12,671 Other 129 251 Subtotal 23,411 27,118 Less: Valuation allowance — — Total net deferred tax assets 23,411 27,118 Deferred tax liabilities: Property and equipment (3,590) (4,861) Operating leases — (4) Other — — Total deferred tax liabilities (3,590) (4,865) Net deferred tax assets $ 19,821 $ 22,253 Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. On the basis of these considerations, as of December 31, 2021, management believes it is more likely than not that the Taxable Subsidiary will realize the benefit of the existing deferred tax assets. Federal income taxes refundable related to the operation of the Taxable Subsidiary of $70 and $0 for the years ended December 31, 2021 and 2020, respectively, are included in “Other current assets”."Income taxes payable" includes a state income tax liability related to the operation of the Partnership of $304 and $455 for the years ended December 31, 2021 and 2020, respectively. Also included in "Income taxes payable" are state income tax liabilities related to the operation of the Taxable Subsidiary of $81 and $101 for the years ended December 31, 2021 and 2020, respectively. At December 31, 2021, MTI had net operating loss carryforwards for income tax purposes of approximately $67,681 related to federal and state taxes. Of these net operating loss carryforwards, approximately $19,379 will expire between 2024 and 2041 and approximately $48,302 may be carried forward indefinitely. The operations of the Partnership are generally not subject to income taxes, except as discussed above, because its income is taxed directly to its partners. The net tax basis in the Partnership's assets and liabilities is greater (less) than the reported amounts on the financial statements by approximately $91,893 and $88,526 as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the tax years that remain open to assessment are 2018-2020. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Partnership has four reportable segments: terminalling and storage, natural gas liquids, transportation, and sulfur services. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions. The accounting policies of the operating segments are the same as those described in Note 2. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of interest expense. Operating Revenues Intersegment Eliminations Operating Revenues After Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Year Ended December 31, 2021: Terminalling and storage $ 185,629 $ (6,597) $ 179,032 $ 28,210 $ 10,785 $ 9,582 Natural gas liquids 414,043 — 414,043 2,390 38,098 537 Sulfur services 145,042 — 145,042 10,432 32,972 7,813 Transportation 161,180 (16,866) 144,314 15,719 (8,446) 4,997 Indirect selling, general, and administrative — — — — (16,129) — Total $ 905,894 $ (23,463) $ 882,431 $ 56,751 $ 57,280 $ 22,929 Year Ended December 31, 2020: Terminalling and storage $ 191,041 $ (6,877) $ 184,164 $ 29,489 $ 22,153 $ 11,619 Natural gas liquids 247,484 (5) 247,479 2,456 22,104 395 Sulfur services 108,020 (13) 108,007 12,012 36,256 7,415 Transportation 150,285 (17,793) 132,492 17,505 (16,102) 7,348 Indirect selling, general, and administrative — — — — (17,909) — Total $ 696,830 $ (24,688) $ 672,142 $ 61,462 $ 46,502 $ 26,777 Year Ended December 31, 2019: Terminalling and storage $ 216,313 $ (6,659) $ 209,654 $ 30,952 $ 16,732 $ 12,987 Natural gas liquids 366,502 — 366,502 2,469 44,020 1,870 Sulfur services 111,340 — 111,340 11,332 22,721 14,853 Transportation 183,740 (24,118) 159,622 15,307 (7,388) 8,213 Indirect selling, general, and administrative — — — — (17,981) — Total $ 877,895 $ (30,777) $ 847,118 $ 60,060 $ 58,104 $ 37,923 Revenues from one customer in the Natural Gas Liquids segment was $140,324, $74,722 and $112,280 for the years ended December 31, 2021, 2020 and 2019, respectively. The Partnership's assets by reportable segment as of December 31, 2021 and 2020 are as follows: 2021 2020 Total assets: Terminalling and storage $ 248,194 $ 252,794 Natural gas liquids 78,483 80,737 Sulfur services 108,007 94,154 Transportation 145,177 151,953 Total assets $ 579,861 $ 579,638 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contingencies From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Consolidating Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. Martin Operating Partnership L.P. (the "Operating Partnership"), the Partnership’s wholly-owned subsidiary, and the Partnership's other operating subsidiaries have issued in the past, and may issue in the future, unconditional guarantees of senior or subordinated debt securities of the Partnership. The guarantees that have been issued are full, irrevocable and unconditional and joint and several. In addition, the Operating Partnership may also issue senior or subordinated debt securities which, if issued, will be fully, irrevocably and unconditionally guaranteed by the Partnership. Substantially all of the Partnership's operating subsidiaries are subsidiary guarantors of its outstanding senior notes and any subsidiaries other than the subsidiary guarantors are minor. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSQuarterly Distribution. On January 25, 2022, the Partnership declared a quarterly cash distribution of $0.005 per common unit for the fourth quarter of 2021, or $0.02 per common unit on an annualized basis, which was paid on February 14, 2022 to unitholders of record as of February 7, 2022. |
Significant Accounting Polici_2
Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Presentation and Consolidation | Principles of Presentation and Consolidation The consolidated financial statements include the financial statements of the Partnership and its wholly-owned subsidiaries and equity method investees. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. In addition, the Partnership evaluates its relationships with other entities to identify whether they are variable interest entities under certain provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), 810-10 and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Partnership is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810-10. No such variable interest entities existed as of December 31, 2021 or 2020. |
Product Exchanges | Product Exchanges The Partnership enters into product exchange agreements with third parties, whereby the Partnership agrees to exchange NGLs and sulfur with third parties. The Partnership records the balance of exchange products due to other companies under these agreements at quoted market product prices and the balance of exchange products due from other companies at the lower of cost or market. Cost is determined using the first-in, first-out ("FIFO") method. Product exchanges with the same counterparty are entered into in contemplation of one another and are combined. The net amount related to location differentials is reported in "Product sales" or "Cost of products sold" in the Consolidated Statements of Operations. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is generally determined by using the FIFO method for all inventories except lubricants and lubricants packaging inventories. Lubricants and lubricants packaging inventories cost is determined using standard cost, which approximates actual cost, computed on a FIFO basis. |
Revenue Recognition | Revenue Recognition Terminalling and Storage – Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Natural Gas Liquids – Revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services – Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Transportation – Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. |
Equity Method Investments | Equity Method Investments The Partnership uses the equity method of accounting for investments in unconsolidated entities where the ability to exercise significant influence over such entities exists. Investments in unconsolidated entities consist of capital contributions and advances plus the Partnership’s share of accumulated earnings as of the entities’ latest fiscal year-ends, less capital withdrawals and distributions. Equity method investments are subject to impairment under the provisions of ASC 323-10, which relates to the equity method of accounting for investments in common stock. No portion of the net income from these entities is included in the Partnership’s operating income. |
Property, Plant and Equipment | Property, Plant, and Equipment Owned property, plant, and equipment is stated at cost, less accumulated depreciation. Owned buildings and equipment are depreciated using the straight-line method over the estimated lives of the respective assets. Equipment under finance leases is stated at the present value of minimum lease payments less accumulated amortization. Equipment under finance leases is amortized on a straight line basis over the estimated useful life of the asset. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is subject to a fair-value based impairment test on an annual basis, or more often if events or circumstances indicate there may be impairment. The Partnership is required to identify its reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets. The Partnership is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. When assessing the recoverability of goodwill and other intangible assets, the Partnership may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount. After assessing qualitative factors, if the Partnership determines that it is not more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount, then performing a quantitative assessment is not required. If an initial qualitative assessment indicates that it is more likely than not the carrying amount exceeds the fair value of a reporting unit or other intangible asset, a quantitative analysis will be performed. The Partnership may also elect to bypass the qualitative assessment and proceed directly to a quantitative analysis depending on the facts and circumstances. Of the Partnership's four reporting units, the terminalling and storage, transportation, and sulfur services reporting units contain goodwill. In performing a quantitative analysis, recoverability of goodwill for each reporting unit is measured using a weighting of the discounted cash flow method and two market approaches (the guideline public company method and the guideline transaction method). The discounted cash flow model incorporates discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in assessing impairment in the absence of available transactional market evidence to determine the fair value. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital ("WACC"). The WACC considers market and industry data as well as company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Management, considering industry and company specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying amount, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Significant changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could give rise to future impairment. Changes to these estimates and assumptions can include, but may not be limited to, varying commodity prices, volume changes and operating costs due to market conditions and/or alternative providers of services. Applying this impairment review methodology, the Partnership considered the impact that COVID-19 had on our cash flows and the value our unit price during both 2021 and 2020 and elected to bypass the qualitative assessment and perform a quantitative assessment. Based upon the most recent annual review as of August 31, 2021, no goodwill impairment exists within the Partnership's reporting units for the year ended December 31, 2021. No goodwill impairment was recorded for the years ended December 31, 2020 or 2019. |
Debt Issuance Costs | Debt Issuance CostsDebt issuance costs relating to the Partnership’s credit facility and senior notes are deferred and amortized over the terms of the debt arrangements and are shown, net of accumulated amortization, as a reduction of the related long-term debt. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets In accordance with ASC 360-10, long-lived assets, such as property, plant and equipment, and intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. |
Asset Retirement Obligations | Asset Retirement Obligations Under ASC 410-20, which relates to accounting requirements for costs associated with legal obligations to retire tangible, long-lived assets, the Partnership records an asset retirement obligation at present value based upon estimated costs to retire the asset in the period in which it is incurred by increasing the carrying amount of the related long-lived asset. In each subsequent period, the liability is accreted over time towards the ultimate obligation amount and the capitalized costs are depreciated over the useful life of the related asset. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities In accordance with certain provisions of ASC 815-10 related to accounting for derivative instruments and hedging activities, all derivatives and hedging instruments are included in the Consolidated Balance Sheets as an asset or liability measured at fair value and changes in fair value are recognized currently in earnings unless specific hedge accounting criteria are met. If a derivative qualifies for hedge accounting, changes in the fair value can be offset against the change in the fair value of the hedged item through earnings or recognized in other comprehensive income until such time as the hedged item is recognized in earnings. |
Use of Estimates | Use of EstimatesManagement has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the U.S. Actual results could differ from those estimates. |
Environmental Liabilities and Litigation | Environmental Liabilities and Litigation The Partnership’s policy is to accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. |
Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts | Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts. Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in the Partnership’s existing accounts receivable. |
Deferred Catalyst Costs | Deferred Catalyst CostsThe cost of the periodic replacement of catalysts is deferred and amortized over the catalyst’s estimated useful life, which ranges from 12 to 36 months. |
Deferred Turnaround Costs | Deferred Turnaround CostsThe Partnership capitalizes the cost of major turnarounds and amortizes these costs over the estimated period to the next turnaround, which ranges from 12 to 36 months. |
Income Taxes | Income Taxes |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income and other comprehensive income. Other comprehensive income for the Partnership includes unrealized gains and losses on derivative instruments. In accordance with ASC 815-10, the Partnership records deferred hedge gains and losses on its derivative instruments that qualify as cash flow hedges as other comprehensive income. |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS On January 1, 2021, the Partnership adopted FASB Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Accounting Standards Codification (“ASC”) Topic 740): Simplifying the Accounting for Income Taxes , which removes certain exceptions to general principles in ASC 740 and clarifies and amends existing guidance within U.S. GAAP. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements. On January 1, 2020, the Partnership adopted ASU 2016-13, "Financial Instruments - Credit Losses," which required the Partnership to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation: Improvements to Non-employee Share-Based Payment Accounting , which will expand the scope of FASB ASC 718 to include share-based payment transactions for acquiring goods and services from non-employees. The standard is effective for the Partnership's financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Partnership adopted this standard effective January 1, 2019. The result of this adoption did not have a material impact on the Partnership's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. Lessor accounting under the new standard is substantially unchanged and substantially all of our leases will continue to be classified as operating leases under the new standard. Additional qualitative and quantitative disclosures, including significant judgments made by management are required. The update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those reporting periods, with early adoption permitted. The original guidance required application on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to FASB ASC 842 , which includes an option to not restate comparative periods in transition and elect to use the effective date of ASC 842, Leases, as the date of initial application of transition. The Partnership adopted this ASU on January 1, 2019, electing the transition option provided under ASU 2018-11. |
Fair Value Measurements | The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. |
Fair Value of Financial Instruments | The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: • Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions | On January 2, 2019, the Partnership acquired all of the issued and outstanding equity interests of MTI, a wholly-owned subsidiary of Martin Resource Management Corporation, which operates a fleet of trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 24 terminals located throughout the U.S. Gulf Coast and Southeastern U.S. for total consideration as follows: Purchase price 1 $ 135,000 Plus: Working Capital Adjustment 2,795 Less: Finance lease obligations assumed (11,682) Cash consideration paid $ 126,113 Accounts receivable, net $ 11,724 Inventories 1,138 Due from affiliates 1,042 Other current assets 897 Property, plant and equipment, net 25,383 Goodwill 489 Other noncurrent assets 362 Current installments of finance lease obligations (5,409) Accounts payable (2,564) Due to affiliates (482) Other accrued liabilities (2,588) Finance lease obligations, net of current installments (6,272) Historical carrying value of assets acquired $ 23,720 |
DISCONTINUED OPERATIONS AND D_2
DISCONTINUED OPERATIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The operating results, which are included in income (loss) from discontinued operations, were as follows: For the Year Ended December 31, 2019 Total revenues $ 22,836 Total costs and expenses and other, net, excluding depreciation and amortization (15,360) Depreciation and amortization (8,161) Other operating loss, net 1 (178,781) Other, net — Income (loss) from discontinued operations before income taxes (179,466) Income tax expense — Income (loss) from discontinued operations, net of income taxes $ (179,466) 1 The year ended December 31, 2019 includes a loss on the disposition of the Natural Gas Storage Assets of $178,781. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by major source: 2021 2020 2019 Terminalling and storage segment Lubricant product sales $ 103,809 $ 103,300 $ 122,257 Throughput and storage 75,223 80,864 87,397 $ 179,032 $ 184,164 $ 209,654 Transportation segment Land transportation $ 111,611 $ 88,652 $ 98,895 Inland transportation 29,536 40,507 54,834 Offshore transportation 3,167 3,333 5,893 $ 144,314 $ 132,492 $ 159,622 Sulfur service segment Sulfur product sales $ 32,416 $ 24,176 $ 30,135 Fertilizer product sales 100,827 72,172 69,771 Sulfur services 11,799 11,659 11,434 $ 145,042 $ 108,007 $ 111,340 Natural gas liquids segment Natural gas liquids product sales $ 414,043 $ 247,479 $ 366,502 $ 414,043 $ 247,479 $ 366,502 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 2022 2023 2024 2025 2026 Thereafter Total Terminalling and storage Throughput and storage $ 43,527 $ 42,041 $ 43,360 $ 44,661 $ 45,940 $ 251,349 $ 470,878 Natural Gas Services Natural Gas Liquids $ 6,047 $ 5,391 $ 5,406 $ 5,391 $ 3,131 $ — $ 25,366 Sulfur services Sulfur product sales 17,703 16,953 14,493 2,156 1,182 295 52,782 Total $ 67,277 $ 64,385 $ 63,259 $ 52,208 $ 50,253 $ 251,644 $ 549,026 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Components of inventories at December 31, 2021 and 2020 were as follows: 2021 2020 Natural gas liquids $ 20,034 $ 27,878 Sulfur 612 24 Fertilizer 13,005 10,854 Lubricants 23,876 11,002 Other 4,593 4,364 $ 62,120 $ 54,122 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | At December 31, 2021 and 2020, property, plant and equipment consisted of the following: Depreciable Lives 2021 2020 Land — $ 21,422 $ 21,459 Improvements to land and buildings 10-25 years 132,064 135,227 Storage equipment 5-50 years 122,300 121,437 Marine vessels 4-25 years 183,414 179,666 Operating plant and equipment 3-50 years 360,122 356,293 Furniture, fixtures and other equipment 3-20 years 13,727 14,209 Transportation equipment 3-7 years 50,961 49,836 Construction in progress 14,760 10,981 $ 898,770 $ 889,108 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table represents the goodwill balance by reporting unit at December 31, 2021 and 2020 as follows: 2021 2020 Carrying amount of goodwill: Terminalling and storage $ 10,985 $ 10,985 Sulfur services 5,349 5,349 Transportation 489 489 Total goodwill $ 16,823 $ 16,823 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows: 2021 2020 2019 Operating lease cost $ 9,266 $ 10,672 $ 10,805 Finance lease cost: Amortization of right-of-use assets 164 1,755 2,686 Interest on lease liabilities 26 294 671 Short-term lease cost 10,290 13,187 13,756 Variable lease cost 115 109 92 Total lease cost $ 19,861 $ 26,017 $ 28,010 Supplemental cash flow information for the years ended December 31, 2021, 2020, and 2019 related to leases were as follows: 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,678 $ 23,996 $ 24,526 Operating cash flows from finance leases 26 294 671 Financing cash flows from finance leases 2,707 4,562 5,514 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,668 $ 7,779 $ 9,122 Finance leases 0 83 1,309 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows at December 31, 2021 and 2020: 2021 2020 Operating Leases Operating lease right-of-use assets $ 21,861 $ 22,260 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 6,600 $ 7,529 Operating lease liabilities 15,704 15,181 Total operating lease liabilities $ 22,304 $ 22,710 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 10,352 Accumulated depreciation (364) (3,703) Property, plant and equipment, net $ 707 $ 6,649 Current installments of finance lease obligations $ 280 $ 2,707 Finance lease obligations 9 289 Total finance lease obligations $ 289 $ 2,996 Weighted Average Remaining Lease Term (years) Operating leases 6.46 5.87 Finance leases 0.97 1.39 Weighted Average Discount Rate Operating leases 4.96 % 5.04 % Finance leases 5.74 % 6.04 % |
Schedule of Future Minimum Lease Obligations, Finance Lease | The Partnership’s future minimum lease obligations as of December 31, 2021 consist of the following: Operating Leases Finance Leases Year 1 $ 7,501 $ 289 Year 2 4,672 9 Year 3 3,137 — Year 4 2,460 — Year 5 1,602 — Thereafter 6,820 — Total 26,192 298 Less amounts representing interest costs (3,888) (9) Total lease liability $ 22,304 $ 289 |
Schedule of Future Minimum Obligations, Operating Leases | The Partnership’s future minimum lease obligations as of December 31, 2021 consist of the following: Operating Leases Finance Leases Year 1 $ 7,501 $ 289 Year 2 4,672 9 Year 3 3,137 — Year 4 2,460 — Year 5 1,602 — Thereafter 6,820 — Total 26,192 298 Less amounts representing interest costs (3,888) (9) Total lease liability $ 22,304 $ 289 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Level 2 December 31, 2021 2020 Commodity derivative contracts, net $ — $ (207) December 31, 2021 December 31, 2020 Carrying Fair Carrying Fair 2021 Notes $ — $ — $ 28,790 $ 28,581 2024 Notes $ 51,317 $ 55,220 $ 50,173 $ 55,214 2025 Notes $ 290,667 $ 307,146 $ 290,250 $ 288,692 Total $ 341,984 $ 362,366 $ 369,213 $ 372,487 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Derivative Instruments on the Consolidated Balance Sheets | The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated Balance Sheets: Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location December 31, 2021 December 31, 2020 Balance Sheet Location December 31, 2021 December 31, 2020 Derivatives designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ — Fair value of derivatives $ — $ — Derivatives not designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ — Fair value of derivatives $ — $ 207 |
Summary of Losses Recognized in AOCI and Reclassification From AOCI | The following table summarizes the loss recognized in AOCI at December 31, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the year ended December 31, 2021 for derivative financial instruments designated as cash flow hedges: Amount of Gain (Loss) Recognized in AOCI Location of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income 2021 2020 2021 2020 Commodity contracts $ 816 $ — Cost of products sold $ (3,768) $ — Total $ 816 $ — $ (3,768) $ — |
Effect of Derivative Instruments on the Consolidated Statement of Operations | The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the year ended December 31, 2021: Location of Gain (Loss) Amount of Gain (Loss) Recognized in 2021 2020 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ (1,825) $ (8,209) Total effect of derivatives not designated as hedging instruments $ (1,825) $ (8,209) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
The Impact of Related Party Transactions | The impact of related party revenues from sales of products and services is reflected in the Consolidated Statements of Operations as follows: Revenues: 2021 2020 2019 Terminalling and storage $ 62,677 $ 63,823 $ 71,733 Transportation 20,046 21,997 24,243 Product sales: Sulfur services 109 60 54 Terminalling and storage 370 257 877 479 317 931 $ 83,202 $ 86,137 $ 96,907 The impact of related party cost of products sold is reflected in the Consolidated Statements of Operations as follows: Cost of products sold: Sulfur services $ 9,980 $ 10,519 $ 10,765 Terminalling and storage 27,866 18,429 23,859 $ 37,846 $ 28,948 $ 34,624 The impact of related party operating expenses is reflected in the Consolidated Statements of Operations as follows: Operating expenses: Transportation $ 55,382 $ 55,786 $ 61,376 Natural gas liquids 2,038 2,003 3,446 Sulfur services 4,411 4,489 4,810 Terminalling and storage 16,776 17,797 18,562 $ 78,607 $ 80,075 $ 88,194 The impact of related party selling, general and administrative expenses is reflected in the Consolidated Statements of Operations as follows: Selling, general and administrative: Transportation $ 6,996 $ 7,358 $ 7,107 Natural gas liquids 4,590 2,397 2,804 Sulfur services 3,276 3,080 2,850 Terminalling and storage 3,370 3,403 3,083 Indirect overhead allocation, net of reimbursement 14,692 16,648 16,778 $ 32,924 $ 32,886 $ 32,622 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Intangible and Other Assets, Net | Components of "Intangibles and other assets, net" at December 31, 2021 and 2020 were as follows: 2021 2020 Catalyst and turnaround costs $ 687 $ 803 Other intangible assets 358 586 Other 1,153 1,416 $ 2,198 $ 2,805 |
Schedule of Other Accrued Liabilities | Components of "Other accrued liabilities" at December 31, 2021 and 2020 were as follows: 2021 2020 Accrued interest $ 15,135 $ 16,104 Asset retirement obligations 261 1,692 Property and other taxes payable 4,631 4,869 Accrued payroll 2,973 3,244 Operating lease liabilities 6,600 7,529 Other 250 969 $ 29,850 $ 34,407 |
Schedule of Asset Retirement Obligations | The schedule below summarizes the changes in our asset retirement obligations: Year Ended December 31, 2021 2020 (In thousands) Beginning asset retirement obligations $ 8,759 $ 8,936 Revisions to existing liabilities 1 — 918 Accretion expense 375 410 Liabilities settled (62) (1,505) Ending asset retirement obligations 9,072 8,759 Current portion of asset retirement obligations 2 (261) (1,692) Long-term portion of asset retirement obligations 3 $ 8,811 $ 7,067 1 Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. 2 The current portion of asset retirement obligations is included in "Other current liabilities" on the Partnership's Consolidated Balance Sheets. 3 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated Balance Sheets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At December 31, 2021 and 2020, long-term debt consisted of the following: 2021 2020 $275,000 1 Credit facility at variable interest rate (5.00% 1 weighted average at December 31, 2021), due August 2023 4 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $2,613 and $3,826, respectively 2 $ 156,887 $ 144,174 $400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $0 and $— respectively, including unamortized premium of $0 and $344, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, and $335,666 refinanced as part of the August 2020 Exchange offer, $28,790 repaid at maturity in February 2021, unsecured 2,3,4,5 — 28,790 $53,750 Senior notes, due February 2024, 10.0% interest, net of unamortized debt issuance costs of $2,433 and $3,577, respectively 2,3 $ 51,317 $ 50,173 $291,970 Senior notes, due February 2025, 11.5% interest, net of unamortized debt issuance costs of $1,303 and $1,720, respectively 2,3 $ 290,667 $ 290,250 Total 498,871 513,387 Less: current portion — (28,790) Total long-term debt, net of current portion $ 498,871 $ 484,597 Current installments of finance lease obligations $ 280 $ 2,707 Finance lease obligations 9 289 Total finance lease obligations $ 289 $ 2,996 1 Interest rate fluctuates based on LIBOR plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. All amounts outstanding at December 31, 2021 were at LIBOR plus an applicable margin of 4.00%, with LIBOR having a floor of 1.00%. The applicable margin for revolving loans that are LIBOR loans currently ranges from 2.75% to 4.00% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.75% to 3.00%. The credit facility contains various covenants which limit the Partnership’s ability to make distributions; make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). The credit facility was amended July 16, 2021 to, among other things, reduce the commitments thereunder from $300,000 to $275,000. 2 The Partnership was in compliance with all debt covenants as of December 31, 2021. 3 The indentures for each of the outstanding senior notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets. 4 On February 15, 2021, our 2021 Notes matured and we retired the outstanding balance of $28,790 using proceeds from our credit facility. 5 In March 2020, the Partnership repurchased on the open market an aggregate $9,344 of the 2021 Notes, resulting in a gain on retirement of $3,484. |
Partners' Capital (Deficit) (Ta
Partners' Capital (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Reconciliation of Net Income to Partners Interest in Net Income | The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: Years Ended December 31, 2021 2020 2019 Continuing operations: Income (loss) from continuing operations $ (211) $ (6,771) $ 4,520 Less general partner’s interest in net income (loss): Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest 16 61 (20) General partner interest in undistributed income (loss) (20) (196) 111 Less income (loss) allocable to unvested restricted units — (21) (1) Limited partners’ interest in net income (loss) $ (207) $ (6,615) $ 4,430 Years Ended December 31, 2021 2020 2019 Discontinued operations: Loss from discontinued operations $ — $ — $ (179,466) Less general partner’s interest in net income (loss): Distributions payable on behalf of IDRs — — — Distributions payable on behalf of general partner interest — — 806 General partner interest in undistributed loss — — (4,396) Less income allocable to unvested restricted units — — 42 Limited partners’ interest in net loss $ — $ — $ (175,918) The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income (loss) from continuing and discontinued operations to total net income (loss). The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Years Ended December 31, 2021 2020 2019 Basic weighted average limited partner units outstanding 38,689,041 38,656,559 38,658,881 Dilutive effect of restricted units issued — — — Total weighted average limited partner diluted units outstanding 38,689,041 38,656,559 38,658,881 |
Unit Based Awards - Long-Term_2
Unit Based Awards - Long-Term Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Compensation Costs Related to Unit Based Plan | Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated financial statements with respect to these plans are as follows: For the Year Ended December 31, 2021 2020 2019 Restricted unit awards Employees $ 194 $ 1,204 $ 1,226 Non-employee directors 190 — — Phantom unit Awards Employees 415 — — Non-employee directors — 218 198 Total unit-based compensation expense $ 799 $ 1,422 $ 1,424 |
Summary of Restricted Unit Activity | A summary of the restricted unit activity for the year ended December 31, 2021 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of year 273,424 $ 10.52 Granted (TBRU) 42,168 $ 2.49 Vested (117,280) $ 11.96 Forfeited (83,436) $ 13.90 Non-Vested, end of year 114,876 $ 3.65 Aggregate intrinsic value, end of year $ 306 |
Summary of Aggregate Intrinsic Value and Fair Value of Units Vested | A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the years ended December 31, 2021, 2020 and 2019 is provided below: For the Year Ended 2021 2020 2019 Aggregate intrinsic value of units vested $ 257 $ 151 $ 1,351 Fair value of units vested $ 1,418 $ 1,427 $ 1,551 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) from operations for the years ended December 31, 2021, 2020 and 2019 are as follows: 2021 2020 2019 Current: Federal $ 455 $ (174) $ 174 State 493 741 366 948 567 540 Deferred: Federal 2,142 1,027 882 State 290 142 478 2,432 1,169 1,360 Total income tax expense $ 3,380 $ 1,736 $ 1,900 |
Income Tax Reconciliation | The income tax expense from the Taxable Subsidiary operations for the years ended December 31, 2021 and 2020 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes of the Taxable Subsidiary) as follows: 2021 2020 "Expected" tax expense $ 2,223 $ 361 Increase in income taxes resulting from: State income taxes, net of federal income tax expense 382 327 Other non-deductible items 384 472 Other, net 91 108 Actual tax expense $ 3,080 $ 1,268 |
Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities at December 31, 2021 and 2020 are as follows: 2021 2020 Deferred tax assets: Bad debt reserves $ 26 $ 59 Goodwill and intangibles 12,523 13,893 Employee benefits 57 244 Interest expense — — Tax loss carryforwards 10,676 12,671 Other 129 251 Subtotal 23,411 27,118 Less: Valuation allowance — — Total net deferred tax assets 23,411 27,118 Deferred tax liabilities: Property and equipment (3,590) (4,861) Operating leases — (4) Other — — Total deferred tax liabilities (3,590) (4,865) Net deferred tax assets $ 19,821 $ 22,253 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Operating Revenues Intersegment Eliminations Operating Revenues After Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Year Ended December 31, 2021: Terminalling and storage $ 185,629 $ (6,597) $ 179,032 $ 28,210 $ 10,785 $ 9,582 Natural gas liquids 414,043 — 414,043 2,390 38,098 537 Sulfur services 145,042 — 145,042 10,432 32,972 7,813 Transportation 161,180 (16,866) 144,314 15,719 (8,446) 4,997 Indirect selling, general, and administrative — — — — (16,129) — Total $ 905,894 $ (23,463) $ 882,431 $ 56,751 $ 57,280 $ 22,929 Year Ended December 31, 2020: Terminalling and storage $ 191,041 $ (6,877) $ 184,164 $ 29,489 $ 22,153 $ 11,619 Natural gas liquids 247,484 (5) 247,479 2,456 22,104 395 Sulfur services 108,020 (13) 108,007 12,012 36,256 7,415 Transportation 150,285 (17,793) 132,492 17,505 (16,102) 7,348 Indirect selling, general, and administrative — — — — (17,909) — Total $ 696,830 $ (24,688) $ 672,142 $ 61,462 $ 46,502 $ 26,777 Year Ended December 31, 2019: Terminalling and storage $ 216,313 $ (6,659) $ 209,654 $ 30,952 $ 16,732 $ 12,987 Natural gas liquids 366,502 — 366,502 2,469 44,020 1,870 Sulfur services 111,340 — 111,340 11,332 22,721 14,853 Transportation 183,740 (24,118) 159,622 15,307 (7,388) 8,213 Indirect selling, general, and administrative — — — — (17,981) — Total $ 877,895 $ (30,777) $ 847,118 $ 60,060 $ 58,104 $ 37,923 |
Assets by Segment | The Partnership's assets by reportable segment as of December 31, 2021 and 2020 are as follows: 2021 2020 Total assets: Terminalling and storage $ 248,194 $ 252,794 Natural gas liquids 78,483 80,737 Sulfur services 108,007 94,154 Transportation 145,177 151,953 Total assets $ 579,861 $ 579,638 |
Organization and Description _2
Organization and Description of Business (Details) - segment | Dec. 28, 2021 | Dec. 31, 2021 |
Schedule of Equity Method Investments | ||
Number of primary business lines | 4 | |
Martin Resource Management Corporation | Holdings | ||
Schedule of Equity Method Investments | ||
Interest acquired, percent | 49.00% | |
Economic ownership percentage by parent | 50.00% | |
Holdings | Martin Resource Management Corporation | ||
Schedule of Equity Method Investments | ||
Ownership percentage | 100.00% | 100.00% |
Significant Accounting Polici_3
Significant Accounting Policies and Practices (Details) ft³ in Billions | 12 Months Ended | |||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 28, 2019USD ($)ft³ | |
Goodwill and Other Intangibles | ||||
Number of reporting units | segment | 4 | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 | |
Impairment of intangible assets | 0 | 0 | 0 | |
Debt Issuance Costs | ||||
Debt issuance cost | 592,000 | 3,781,000 | 4,406,000 | |
Amortization of debt issuance costs | 3,367,000 | 3,422,000 | $ 4,041,000 | |
Accumulated amortization of debt issuance costs | $ 26,022,000 | $ 22,655,000 | ||
Minimum | ||||
Deferred Catalyst Costs | ||||
Catalyst, useful life (in months) | 12 months | |||
Deferred Turnaround Costs | ||||
Turnarounds, useful life (in months) | 12 months | |||
Maximum | ||||
Deferred Catalyst Costs | ||||
Catalyst, useful life (in months) | 36 months | |||
Deferred Turnaround Costs | ||||
Turnarounds, useful life (in months) | 36 months | |||
Natural Gas Storage Assets | Discontinued Operations, Disposed of by Sale | ||||
Accounting Policies | ||||
Natural gas storage (in cubic feet) | ft³ | 50 | |||
Proceeds from sale of assets | $ 210,067,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Jan. 02, 2019USD ($)terminal | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition | |||
Excess purchase price over carrying value of acquired assets | $ 1,350 | $ 102,393 | |
Martin Transport Inc. | |||
Business Acquisition | |||
Number of terminals | terminal | 24 | ||
MEH South Texas Terminals LLC | |||
Business Acquisition | |||
Excess purchase price over carrying value of acquired assets | $ 102,393 |
Acquisitions - Purchase Price (
Acquisitions - Purchase Price (Details) - Martin Transport Inc. - USD ($) $ in Thousands | Jan. 02, 2019 | Dec. 31, 2022 |
Consideration Transferred | ||
Purchase price | $ 135,000 | |
Plus: Working Capital Adjustment | 2,795 | |
Less: Finance lease obligations assumed | (11,682) | |
Cash consideration paid | 126,113 | |
Earn - out based on performance threshold | 10,000 | |
Decrease in earn-out | $ 6,666 | |
Scenario, Forecast | Subsequent Event | ||
Consideration Transferred | ||
Proceeds from contingent consideration | $ 1,350 |
Acquisitions - Martin Transport
Acquisitions - Martin Transport, Inc. Assets Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 02, 2019 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||
Goodwill | $ 16,823 | $ 16,823 | |
Martin Transport Inc. | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | |||
Accounts receivable, net | $ 11,724 | ||
Inventories | 1,138 | ||
Due from affiliates | 1,042 | ||
Other current assets | 897 | ||
Property, plant and equipment, net | 25,383 | ||
Goodwill | 489 | ||
Other noncurrent assets | 362 | ||
Current installments of finance lease obligations | (5,409) | ||
Accounts payable | (2,564) | ||
Due to affiliates | (482) | ||
Other accrued liabilities | (2,588) | ||
Finance lease obligations, net of current installments | (6,272) | ||
Historical carrying value of assets acquired | $ 23,720 |
DISCONTINUED OPERATIONS AND D_3
DISCONTINUED OPERATIONS AND DIVESTITURES - Narrative (Details) - Discontinued Operations, Disposed of by Sale $ in Thousands, ft³ in Billions | Dec. 22, 2020USD ($) | Aug. 12, 2019USD ($) | Dec. 31, 2019USD ($) | Jun. 28, 2019USD ($)ft³ |
Mega Lubricants | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Proceeds from sale of assets | $ 22,400 | |||
Gain on disposition | $ 10,101 | |||
East Texas Pipeline | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Proceeds from sale of assets | $ 17,500 | |||
Gain on disposition | $ 16,154 | |||
Natural Gas Storage Assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Proceeds from sale of assets | $ 210,067 | |||
Gain on disposition | $ 178,781 | |||
Natural gas storage (in cubic feet) | ft³ | 50 |
DISCONTINUED OPERATIONS AND D_4
DISCONTINUED OPERATIONS AND DIVESTITURES - Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | |||
Income (loss) from discontinued operations, net of income taxes | $ 0 | $ 0 | $ (179,466) |
Natural Gas Storage Assets | Discontinued Operations, Disposed of by Sale | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures | |||
Total revenues | 22,836 | ||
Total costs and expenses and other, net, excluding depreciation and amortization | (15,360) | ||
Depreciation and amortization | (8,161) | ||
Other operating loss, net | (178,781) | ||
Other, net | 0 | ||
Income (loss) from discontinued operations before income taxes | (179,466) | ||
Income tax expense | 0 | ||
Income (loss) from discontinued operations, net of income taxes | (179,466) | ||
Gain on disposition | $ 178,781 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disaggregation of Revenue | ||||
Total revenues | $ 882,431 | $ 672,142 | $ 847,118 | |
Lubricant product sales | ||||
Disaggregation of Revenue | ||||
Total revenues | [1] | 103,809 | 103,300 | 122,257 |
Throughput and storage | ||||
Disaggregation of Revenue | ||||
Total revenues | [1] | 75,223 | 80,864 | 87,397 |
Sulfur services | ||||
Disaggregation of Revenue | ||||
Total revenues | 11,799 | 11,659 | 11,434 | |
Natural gas liquids product sales | ||||
Disaggregation of Revenue | ||||
Total revenues | [1] | 414,043 | 247,479 | 366,502 |
Terminalling and storage segment | ||||
Disaggregation of Revenue | ||||
Total revenues | 179,032 | 184,164 | 209,654 | |
Terminalling and storage segment | Lubricant product sales | ||||
Disaggregation of Revenue | ||||
Total revenues | 103,809 | 103,300 | 122,257 | |
Terminalling and storage segment | Throughput and storage | ||||
Disaggregation of Revenue | ||||
Total revenues | 75,223 | 80,864 | 87,397 | |
Transportation segment | ||||
Disaggregation of Revenue | ||||
Total revenues | 144,314 | 132,492 | 159,622 | |
Transportation segment | Land transportation | ||||
Disaggregation of Revenue | ||||
Total revenues | 111,611 | 88,652 | 98,895 | |
Transportation segment | Inland transportation | ||||
Disaggregation of Revenue | ||||
Total revenues | 29,536 | 40,507 | 54,834 | |
Transportation segment | Offshore transportation | ||||
Disaggregation of Revenue | ||||
Total revenues | 3,167 | 3,333 | 5,893 | |
Sulfur service segment | ||||
Disaggregation of Revenue | ||||
Total revenues | 145,042 | 108,007 | 111,340 | |
Sulfur service segment | Sulfur product sales | ||||
Disaggregation of Revenue | ||||
Total revenues | 32,416 | 24,176 | 30,135 | |
Sulfur service segment | Fertilizer product sales | ||||
Disaggregation of Revenue | ||||
Total revenues | 100,827 | 72,172 | 69,771 | |
Sulfur service segment | Sulfur services | ||||
Disaggregation of Revenue | ||||
Total revenues | 11,799 | 11,659 | 11,434 | |
Natural gas liquids | ||||
Disaggregation of Revenue | ||||
Total revenues | 414,043 | 247,479 | 366,502 | |
Natural gas liquids | Natural gas liquids product sales | ||||
Disaggregation of Revenue | ||||
Total revenues | $ 414,043 | $ 247,479 | $ 366,502 | |
[1] | Related Party Transactions Included Above Year Ended December 31, 2021 2020 2019 Revenues: Terminalling and storage $ 62,677 $ 63,823 $ 71,733 Transportation 20,046 21,997 24,243 Product sales 479 317 931 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Sulfur services 9,980 10,519 10,765 Terminalling and storage 27,866 18,429 23,859 Expenses: Operating expenses 78,607 80,075 88,194 Selling, general and administrative 32,924 32,886 32,622 |
Revenue - Estimated Revenue Exp
Revenue - Estimated Revenue Expected to be Recognized in Future (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 549,026 |
Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | 470,878 |
Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | 25,366 |
Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | 52,782 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 67,277 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 43,527 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 6,047 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 17,703 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 64,385 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 42,041 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 5,391 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 16,953 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 63,259 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 43,360 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 5,406 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 14,493 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 52,208 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 44,661 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 5,391 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 2,156 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 50,253 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 45,940 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 3,131 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 1,182 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 251,644 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Throughput and storage | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 251,349 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Sulfur product sales | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 295 |
Revenue, remaining performance obligation, expected timing of satisfaction | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Natural gas liquids | $ 20,034 | $ 27,878 |
Sulfur | 612 | 24 |
Fertilizer | 13,005 | 10,854 |
Lubricants | 23,876 | 11,002 |
Other | 4,593 | 4,364 |
Inventories | $ 62,120 | $ 54,122 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 898,770 | $ 889,108 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | 21,422 | 21,459 |
Improvements to land and buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 132,064 | 135,227 |
Improvements to land and buildings | Minimum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 10 years | |
Improvements to land and buildings | Maximum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 25 years | |
Storage equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 122,300 | 121,437 |
Storage equipment | Minimum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 5 years | |
Storage equipment | Maximum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 50 years | |
Marine vessels | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 183,414 | 179,666 |
Marine vessels | Minimum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 4 years | |
Marine vessels | Maximum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 25 years | |
Operating plant and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 360,122 | 356,293 |
Operating plant and equipment | Minimum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 3 years | |
Operating plant and equipment | Maximum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 50 years | |
Furniture, fixtures and other equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 13,727 | 14,209 |
Furniture, fixtures and other equipment | Minimum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 3 years | |
Furniture, fixtures and other equipment | Maximum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 20 years | |
Transportation equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 50,961 | 49,836 |
Transportation equipment | Minimum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 3 years | |
Transportation equipment | Maximum | ||
Property, Plant and Equipment | ||
Depreciable lives (in years) | 7 years | |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, at cost | $ 14,760 | $ 10,981 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | |||
Depreciation expense | $ 52,289 | $ 55,817 | $ 53,856 |
Amortization of right-of-use assets | 164 | 1,755 | 2,686 |
Property, plant and equipment, at cost | 1,071 | 10,352 | |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | 364 | 3,703 | |
Additions to property, plant and equipment included in accounts payable | 3,229 | 468 | 3,791 |
Capital leased assets, additions | $ 0 | 83 | $ 1,308 |
Assets held for sale | 700 | ||
Terminalling and storage | |||
Property, Plant and Equipment | |||
Impairment charge | 3,052 | ||
Transportation | |||
Property, Plant and Equipment | |||
Impairment charge | $ 1,300 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill | ||
Carrying amount of goodwill | $ 16,823 | $ 16,823 |
Terminalling and storage | ||
Goodwill | ||
Carrying amount of goodwill | 10,985 | 10,985 |
Sulfur services | ||
Goodwill | ||
Carrying amount of goodwill | 5,349 | 5,349 |
Transportation | ||
Goodwill | ||
Carrying amount of goodwill | $ 489 | $ 489 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description | ||
Termination period ( in years) | 1 year | |
Right-of-use assets | $ 21,861 | $ 22,260 |
Non-cancelable revenue arrangements, future minimum revenues, 2022 | 17,093 | |
Non-cancelable revenue arrangements, future minimum revenues, 2023 | 14,425 | |
Non-cancelable revenue arrangements, future minimum revenues, 2024 | 14,425 | |
Non-cancelable revenue arrangements, future minimum revenues, 2025 | 13,858 | |
Non-cancelable revenue arrangements, future minimum revenues, 2026 | 8,173 | |
Non-cancelable revenue arrangements, future minimum revenues, subsequent years | 30,670 | |
Land, Building and Equipment | ||
Lessee, Lease, Description | ||
Right-of-use assets | $ 1,184 | |
Minimum | ||
Lessee, Lease, Description | ||
Remaining lease term (in years) | 1 year | |
Minimum | Land, Building and Equipment | ||
Lessee, Lease, Description | ||
Operating lease term (years) | 3 years | |
Maximum | ||
Lessee, Lease, Description | ||
Remaining lease term (in years) | 15 years | |
Renewal term (in years) | 5 years | |
Maximum | Land, Building and Equipment | ||
Lessee, Lease, Description | ||
Operating lease term (years) | 5 years |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease cost | $ 9,266 | $ 10,672 | $ 10,805 |
Finance lease cost: | |||
Amortization of right-of-use assets | 164 | 1,755 | 2,686 |
Interest on lease liabilities | 26 | 294 | 671 |
Short-term lease cost | 10,290 | 13,187 | 13,756 |
Variable lease cost | 115 | 109 | 92 |
Total lease cost | $ 19,861 | $ 26,017 | $ 28,010 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 19,678 | $ 23,996 | $ 24,526 |
Operating cash flows from finance leases | 26 | 294 | 671 |
Financing cash flows from finance leases | 2,707 | 4,562 | 5,514 |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 7,668 | 7,779 | 9,122 |
Finance leases | $ 0 | $ 83 | $ 1,309 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Operating lease right-of-use assets | $ 21,861 | $ 22,260 |
Current portion of operating lease liabilities included in "Other accrued liabilities" | 6,600 | 7,529 |
Operating lease liabilities | 15,704 | 15,181 |
Total operating lease liabilities | $ 22,304 | $ 22,710 |
Operating Lease, Liability, Current, Statement of Financial Position | Other accrued liabilities | Other accrued liabilities |
Finance Leases | ||
Property, plant and equipment, at cost | $ 1,071 | $ 10,352 |
Accumulated depreciation | (364) | (3,703) |
Property, plant and equipment, net | 707 | 6,649 |
Current installments of finance lease obligations | $ 280 | $ 2,707 |
Finance Lease, Liability, Current, Statement of Financial Position | Current portion of long term debt and finance lease obligations | Current portion of long term debt and finance lease obligations |
Finance lease obligations | $ 9 | $ 289 |
Total finance lease obligations | $ 289 | $ 2,996 |
Weighted Average Remaining Lease Term (years) | ||
Operating leases | 6 years 5 months 15 days | 5 years 10 months 13 days |
Finance leases | 11 months 19 days | 1 year 4 months 20 days |
Weighted Average Discount Rate | ||
Operating leases | 4.96% | 5.04% |
Finance leases | 5.74% | 6.04% |
Leases - Future Minimum Lease O
Leases - Future Minimum Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Year 1 | $ 7,501 | |
Year 2 | 4,672 | |
Year 3 | 3,137 | |
Year 4 | 2,460 | |
Year 5 | 1,602 | |
Thereafter | 6,820 | |
Total | 26,192 | |
Less amounts representing interest costs | (3,888) | |
Total lease liability | 22,304 | $ 22,710 |
Finance Leases | ||
Year 1 | 289 | |
Year 2 | 9 | |
Year 3 | 0 | |
Year 4 | 0 | |
Year 5 | 0 | |
Thereafter | 0 | |
Total | 298 | |
Less amounts representing interest costs | (9) | |
Total lease liability | $ 289 | $ 2,996 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Recurring | Level 2 | Commodity derivative contracts, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Commodity derivative contracts, net | $ 0 | $ (207) |
Nonrecurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 341,984 | 369,213 |
Nonrecurring | Carrying Value | 2021 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 0 | 28,790 |
Nonrecurring | Carrying Value | 2024 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 51,317 | 50,173 |
Nonrecurring | Carrying Value | 2025 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 290,667 | 290,250 |
Nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 362,366 | 372,487 |
Nonrecurring | Fair Value | 2021 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 0 | 28,581 |
Nonrecurring | Fair Value | 2024 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | 55,220 | 55,214 |
Nonrecurring | Fair Value | 2025 Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Senior notes | $ 307,146 | $ 288,692 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - bbl | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commodity derivative contracts, net | ||
Derivative [Line Items] | ||
Notional quantity (in bbl) | 0 | 137,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Commodity derivative contracts, net - Fair Value of Derivatives, Current - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | $ 0 | $ 0 |
Derivative liability, fair value | 0 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | $ 0 | $ 207 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Derivative Financial Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount recognized in AOCI after reclassification | $ 816 | $ 0 | $ 0 |
Designated as Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) Reclassified from AOCI into Income | (3,768) | 0 | |
Amount recognized in AOCI after reclassification | 816 | 0 | |
Commodity derivative contracts, net | Designated as Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI | 816 | 0 | |
Commodity derivative contracts, net | Cost of products sold | Designated as Hedging Instrument | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Amount of Gain (Loss) Reclassified from AOCI into Income | $ (3,768) | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Effect of derivative instruments on the Consolidated Statement of Operations (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (1,825) | $ (8,209) |
Commodity contracts | Cost of products sold | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (1,825) | $ (8,209) |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - shares | Dec. 28, 2021 | Dec. 31, 2021 |
Martin Resource Management | ||
Related Party Transaction | ||
Number of shares owned (in shares) | 6,114,532 | |
Equity investment ownership percentage | 15.80% | |
MMGP | ||
Related Party Transaction | ||
General partner interest percentage | 2.00% | |
MMGP | Martin Resource Management | ||
Related Party Transaction | ||
General partner interest percentage | 2.00% | |
Ownership percentage | 15.80% | |
Holdings | Martin Resource Management Corporation | ||
Related Party Transaction | ||
Ownership percentage | 100.00% | 100.00% |
Related Party Transactions - Om
Related Party Transactions - Omnibus Agreement Narrative (Details) - Omnibus Agreement - Martin Resource Management - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction | |||
Noncompete restriction threshold | $ 5,000,000 | ||
Noncompete restriction ownership option opportunity threshold minimum | 5,000,000 | ||
Noncompete restriction ownership option opportunity threshold minimum with equity limitation | $ 5,000,000 | ||
Equity limitation on ownership restriction percentage | 20.00% | ||
Approved Annual Reimbursements For Indirect Expenses | $ 14,386,000 | ||
Indirect expenses reimbursed | $ 14,386,000 | $ 16,410,000 | $ 16,657,000 |
Related Party Transactions - Ma
Related Party Transactions - Master Transportation Services Agreement (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Master Transportation Services Agreement | Martin Resource Management | |
Related Party Transaction | |
Minimum term of written notice (in days) | 30 days |
Related Party Transactions - Te
Related Party Transactions - Terminal Services Agreements (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Terminal Services Agreements | Martin Resource Management | |
Related Party Transaction | |
Minimum term of written notice (in days) | 60 days |
Related Party Transactions - _2
Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transaction | |
Automatic consecutive term renewal (in years) | 1 year |
Minimum term of written notice (in days) | 60 days |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022USD ($) | Dec. 31, 2021USD ($)bbl_per_day | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction | ||||
Operating cash flows from operating leases | $ 19,678 | $ 23,996 | $ 24,526 | |
East Texas Mack | Ruben Martin | ||||
Related Party Transaction | ||||
Ownership interest | 46.00% | |||
Operating cash flows from operating leases | $ 1,089 | 650 | 875 | |
Cross Tolling Agreement | Martin Resource Management | ||||
Related Party Transaction | ||||
Production minimum per day (in bbl) | bbl_per_day | 6,500 | |||
Capital recovery fee reimbursement, expired | $ 2,586 | $ 2,088 | ||
Scenario, Forecast | Cross Tolling Agreement | Martin Resource Management | ||||
Related Party Transaction | ||||
Annual revenue decrease from contract expiration | $ 2,145 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of the impact of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating expenses: | |||
Operating expenses | $ 78,607 | $ 80,075 | $ 88,194 |
Related Party | |||
Revenues: | |||
Revenue from related parties | 83,202 | 86,137 | 96,907 |
Cost of products sold: | |||
Costs of products sold | 37,846 | 28,948 | 34,624 |
Operating expenses: | |||
Operating expenses | 78,607 | 80,075 | 88,194 |
Selling, general and administrative: | |||
Selling, general and administrative | 32,924 | 32,886 | 32,622 |
Throughput and storage | Related Party | |||
Revenues: | |||
Revenue from related parties | 62,677 | 63,823 | 71,733 |
Transportation | Related Party | |||
Revenues: | |||
Revenue from related parties | 20,046 | 21,997 | 24,243 |
Operating expenses: | |||
Operating expenses | 55,382 | 55,786 | 61,376 |
Selling, general and administrative: | |||
Selling, general and administrative | 6,996 | 7,358 | 7,107 |
Natural gas liquids | Related Party | |||
Operating expenses: | |||
Operating expenses | 2,038 | 2,003 | 3,446 |
Selling, general and administrative: | |||
Selling, general and administrative | 4,590 | 2,397 | 2,804 |
Product sales | Related Party | |||
Revenues: | |||
Revenue from related parties | 479 | 317 | 931 |
Sulfur services | Related Party | |||
Revenues: | |||
Revenue from related parties | 109 | 60 | 54 |
Cost of products sold: | |||
Costs of products sold | 9,980 | 10,519 | 10,765 |
Operating expenses: | |||
Operating expenses | 4,411 | 4,489 | 4,810 |
Selling, general and administrative: | |||
Selling, general and administrative | 3,276 | 3,080 | 2,850 |
Terminalling and storage | Related Party | |||
Revenues: | |||
Revenue from related parties | 370 | 257 | 877 |
Cost of products sold: | |||
Costs of products sold | 27,866 | 18,429 | 23,859 |
Operating expenses: | |||
Operating expenses | 16,776 | 17,797 | 18,562 |
Selling, general and administrative: | |||
Selling, general and administrative | 3,370 | 3,403 | 3,083 |
Indirect overhead allocation, net of reimbursement | Related Party | |||
Selling, general and administrative: | |||
Selling, general and administrative | $ 14,692 | $ 16,648 | $ 16,778 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Catalyst and turnaround costs | $ 687 | $ 803 |
Other intangible assets | 358 | 586 |
Other | 1,153 | 1,416 |
Intangible and other assets, net | $ 2,198 | $ 2,805 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |||
Amortization of intangible assets | $ 4,085 | $ 5,235 | $ 5,797 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
2022 | 4,403 | ||
2023 | 661 | ||
2024 | 266 | ||
2025 | 84 | ||
2026 | 1 | ||
Subsequent years | $ 0 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued interest | $ 15,135 | $ 16,104 |
Asset retirement obligations | 261 | 1,692 |
Property and other taxes payable | 4,631 | 4,869 |
Accrued payroll | 2,973 | 3,244 |
Operating lease liabilities | 6,600 | 7,529 |
Other | 250 | 969 |
Total other accrued liabilities | $ 29,850 | $ 34,407 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Beginning asset retirement obligations | $ 8,759 | $ 8,936 |
Revisions to existing liabilities | 0 | 918 |
Accretion expense | 375 | 410 |
Liabilities settled | (62) | (1,505) |
Ending asset retirement obligations | 9,072 | 8,759 |
Current portion of asset retirement obligations | (261) | (1,692) |
Long-term portion of asset retirement obligations | $ 8,811 | $ 7,067 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2021 | Aug. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 16, 2021 | Jul. 15, 2021 | Dec. 31, 2016 | Apr. 30, 2014 | Feb. 28, 2013 | |
Debt Instrument | |||||||||||
Repayments of long-term debt | $ 333,790,000 | $ 333,637,000 | $ 724,000,000 | ||||||||
Total long-term debt | 498,871,000 | 513,387,000 | |||||||||
Less: current portion | 0 | (28,790,000) | |||||||||
Total long-term debt, net of current portion | 498,871,000 | 484,597,000 | |||||||||
Current installments of finance lease obligations | 280,000 | 2,707,000 | |||||||||
Finance lease obligations | 9,000 | 289,000 | |||||||||
Total finance lease obligations | $ 289,000 | 2,996,000 | |||||||||
Applicable margins (percent) | 4.00% | ||||||||||
Gain on retirement of senior unsecured notes | $ 0 | 3,484,000 | $ 0 | ||||||||
Revolving Loan Facility | |||||||||||
Debt Instrument | |||||||||||
Maximum borrowing capacity | $ 275,000,000 | $ 275,000,000 | $ 300,000,000 | ||||||||
Weighted average interest rate | 5.00% | ||||||||||
Unamortized debt issuance costs | $ 2,613,000 | 3,826,000 | |||||||||
Total long-term debt | $ 156,887,000 | 144,174,000 | |||||||||
Revolving Loan Facility | LIBOR | |||||||||||
Debt Instrument | |||||||||||
Interest rate floor (percent) | 1.00% | ||||||||||
Revolving Loan Facility | Minimum | LIBOR | |||||||||||
Debt Instrument | |||||||||||
Applicable margins (percent) | 2.75% | ||||||||||
Revolving Loan Facility | Minimum | Prime Rate | |||||||||||
Debt Instrument | |||||||||||
Applicable margins (percent) | 1.75% | ||||||||||
Revolving Loan Facility | Maximum | LIBOR | |||||||||||
Debt Instrument | |||||||||||
Applicable margins (percent) | 4.00% | ||||||||||
Revolving Loan Facility | Maximum | Prime Rate | |||||||||||
Debt Instrument | |||||||||||
Applicable margins (percent) | 3.00% | ||||||||||
Senior Notes | Senior Notes 7.250% | |||||||||||
Debt Instrument | |||||||||||
Unamortized debt issuance costs | $ 0 | 0 | |||||||||
Face amount | $ 400,000,000 | $ 150,000,000 | $ 250,000,000 | ||||||||
Fixed rate cost | 7.25% | ||||||||||
Unamortized premium | $ 0 | 344,000 | |||||||||
Amount of debt repurchased | $ 9,344,000 | 9,344,000 | $ 26,200,000 | ||||||||
Debt refinanced | $ 335,666,000 | ||||||||||
Repayments of long-term debt | $ 28,790,000 | ||||||||||
Total long-term debt | 0 | 28,790,000 | |||||||||
Gain on retirement of senior unsecured notes | $ 3,484,000 | ||||||||||
Senior Notes | 2024 Notes | |||||||||||
Debt Instrument | |||||||||||
Unamortized debt issuance costs | 2,433,000 | 3,577,000 | |||||||||
Face amount | $ 53,750,000 | ||||||||||
Fixed rate cost | 10.00% | ||||||||||
Total long-term debt | $ 51,317,000 | 50,173,000 | |||||||||
Senior Notes | 2025 Notes | |||||||||||
Debt Instrument | |||||||||||
Unamortized debt issuance costs | 1,303,000 | 1,720,000 | |||||||||
Face amount | $ 291,970,000 | ||||||||||
Fixed rate cost | 11.50% | ||||||||||
Total long-term debt | $ 290,667,000 | $ 290,250,000 |
Long-Term Debt - Narratives (De
Long-Term Debt - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Cash paid for interest | $ 51,708 | $ 37,678 | $ 48,025 |
Capitalized interest | $ 0 | $ 43 | $ 5 |
Partners' Capital (Deficit) - N
Partners' Capital (Deficit) - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Limited Partners' Capital Account | |
Common limited partner units (in shares) | 38,802,750 |
Martin Resource Management | |
Limited Partners' Capital Account | |
Common limited partner units (in shares) | 6,114,532 |
MMGP | |
Limited Partners' Capital Account | |
General partner interest percentage | 2.00% |
MMGP | Martin Resource Management | |
Limited Partners' Capital Account | |
Ownership percentage | 15.80% |
General partner interest percentage | 2.00% |
Martin Resource Management Corporation | |
Limited Partners' Capital Account | |
Ownership percentage | 98.00% |
Partners' Capital (Deficit) - I
Partners' Capital (Deficit) - Impact on Partners' Capital (Deficit) Related to Transactions Between Entities Under Common Control (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Limited Partners' Capital Account | |||
Cash distributions | $ 791 | $ 5,317 | $ 49,093 |
Martin Resource Management Corporation | Martin Resource Management Corporation | |||
Limited Partners' Capital Account | |||
Purchase price | 552,123 | ||
Cash distributions | $ 289,084 |
Partners' Capital (Deficit) -_2
Partners' Capital (Deficit) - Incentive Distribution Rights (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Martin Midstream GP LLC | |||
Limited Partners' Capital Account | |||
Distributions payable on behalf of IDRs | $ 0 | $ 0 | $ 0 |
MMGP | |||
Limited Partners' Capital Account | |||
General partner interest percentage | 2.00% | ||
MMGP | Martin Midstream GP LLC | |||
Limited Partners' Capital Account | |||
General partner interest percentage | 2.00% |
Partners' Capital (Deficit) - D
Partners' Capital (Deficit) - Distributions of Available Cash (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Distribution period (in days) | 45 days |
Partners' Capital (Deficit) - R
Partners' Capital (Deficit) - Reconciliation of net income to partners interest in net income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Net Income from Continuing and Discontinued Operations | |||
Income (loss) from continuing operations | $ (211) | $ (6,771) | $ 4,520 |
Loss from discontinued operations | 0 | 0 | (179,466) |
Less general partner’s interest in net income (loss): | |||
Less income (loss) allocable to unvested restricted units | 0 | 21 | (41) |
Limited partners' interest in net loss | $ (207) | $ (6,615) | $ (171,488) |
Basic weighted average limited partner units outstanding (in shares) | 38,689,041 | 38,656,559 | 38,658,881 |
Dilutive effect of restricted units issued (in shares) | 0 | 0 | 0 |
Total weighted average limited partner diluted units outstanding (in shares) | 38,689,041 | 38,656,559 | 38,658,881 |
Continuing operations: | |||
Reconciliation of Net Income from Continuing and Discontinued Operations | |||
Income (loss) from continuing operations | $ (211) | $ (6,771) | $ 4,520 |
Less general partner’s interest in net income (loss): | |||
Distributions payable on behalf of IDRs | 0 | 0 | 0 |
Distributions payable on behalf of general partner interest | 16 | 61 | (20) |
General partner interest in undistributed income (loss) | (20) | (196) | 111 |
Less income (loss) allocable to unvested restricted units | 0 | (21) | (1) |
Limited partners' interest in net loss | (207) | (6,615) | 4,430 |
Discontinued operations: | |||
Reconciliation of Net Income from Continuing and Discontinued Operations | |||
Loss from discontinued operations | 0 | 0 | (179,466) |
Less general partner’s interest in net income (loss): | |||
Distributions payable on behalf of IDRs | 0 | 0 | 0 |
Distributions payable on behalf of general partner interest | 0 | 0 | 806 |
General partner interest in undistributed income (loss) | 0 | 0 | (4,396) |
Less income (loss) allocable to unvested restricted units | 0 | 0 | 42 |
Limited partners' interest in net loss | $ 0 | $ 0 | $ (175,918) |
Unit Based Awards - Long-Term_3
Unit Based Awards - Long-Term Incentive Plans - Schedule of compensation costs relate to unit based plan (Details) - Selling, General and Administrative Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total unit-based compensation expense | $ 799 | $ 1,422 | $ 1,424 |
Employees | Restricted unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total unit-based compensation expense | 194 | 1,204 | 1,226 |
Employees | Phantom unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total unit-based compensation expense | 415 | 0 | 0 |
Non-employee directors | Restricted unit awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total unit-based compensation expense | 190 | 0 | 0 |
Non-employee directors | Phantom unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Total unit-based compensation expense | $ 0 | $ 218 | $ 198 |
Unit Based Awards - Long-Term_4
Unit Based Awards - Long-Term Incentive Plans - Narrative (Details) $ in Thousands | Jan. 24, 2025shares | Jan. 24, 2024shares | Jan. 24, 2023shares | Jan. 24, 2022shares | Jul. 21, 2021shares | Feb. 22, 2021directorshares | Mar. 01, 2018shares | Dec. 31, 2021USD ($)shares | May 26, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of shares authorized (in shares) | 3,000,000 | ||||||||
Phantom unit Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Trading days | 20 days | ||||||||
Compensation costs not yet recognized | $ | $ 1,233 | ||||||||
Weighted average period for recognition (in years) | 2 years 6 months 21 days | ||||||||
Phantom unit Awards | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Issuance of performance-based restricted units (in shares) | 620,000 | ||||||||
Phantom Units Appreciation Rights | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Issuance of performance-based restricted units (in shares) | 1,245,000 | ||||||||
Restricted unit awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of units vested (in shares) | 117,280 | ||||||||
Restricted unit awards | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Vesting period (in years) | 4 years | ||||||||
Time Based Restricted Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Issuance of performance-based restricted units (in shares) | 42,168 | ||||||||
Compensation costs not yet recognized | $ | $ 248 | ||||||||
Weighted average period for recognition (in years) | 2 years 1 month 13 days | ||||||||
Vesting period (in years) | 3 years | ||||||||
Number of directors receiving grants | director | 3 | ||||||||
Time Based Restricted Units | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Issuance of performance-based restricted units (in shares) | 14,056 | ||||||||
Time Based Restricted Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Issuance of performance-based restricted units (in shares) | 301,550 | ||||||||
Performance Based Restricted Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Vesting period (in years) | 3 years | ||||||||
Performance Based Restricted Units | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Issuance of performance-based restricted units (in shares) | 317,925 | ||||||||
Scenario, Forecast | Time Based Restricted Units | Non-employee directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||
Number of units vested (in shares) | 3,514 | 3,514 | 3,514 | 3,514 |
Unit Based Awards - Long-Term_5
Unit Based Awards - Long-Term Incentive Plans - Summary of restricted unit activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Restricted unit awards | |
Number of Units | |
Non-vested, beginning of period, numbers of units (in shares) | shares | 273,424 |
Vested, number of units (in shares) | shares | (117,280) |
Forfeited, number of units (in shares) | shares | (83,436) |
Non-vested, end of period, number of units (in shares) | shares | 114,876 |
Weighted Average Grant-Date Fair Value Per Unit | |
Non-vested, beginning of period, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | $ 10.52 |
Vested, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | 11.96 |
Forfeited, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | 13.90 |
Non-vested, end of period, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | $ 3.65 |
Aggregate intrinsic value, end of year | $ | $ 306 |
Time Based Restricted Units | |
Number of Units | |
Issuance of performance-based restricted units (in shares) | shares | 42,168 |
Weighted Average Grant-Date Fair Value Per Unit | |
Granted, weighted average grant-date fair value per unit (in dollars per share) | $ / shares | $ 2.49 |
Unit Based Awards - Long-Term_6
Unit Based Awards - Long-Term Incentive Plans - Summary of aggregate intrinsic value and fair value of units vested (Details) - Restricted unit awards - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Aggregate intrinsic value of units vested | $ 257 | $ 151 | $ 1,351 |
Fair value of units vested | $ 1,418 | $ 1,427 | $ 1,551 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 455 | $ (174) | $ 174 |
State | 493 | 741 | 366 |
Total current income tax expense | 948 | 567 | 540 |
Deferred: | |||
Federal | 2,142 | 1,027 | 882 |
State | 290 | 142 | 478 |
Total deferred income tax expense (benefit) | 2,432 | 1,169 | 1,360 |
Total income tax expense | $ 3,380 | $ 1,736 | $ 1,900 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards | |||
Income Tax Expense (Benefit) | $ 3,380 | $ 1,736 | $ 1,900 |
Cash paid for income taxes | 1,232 | 416 | 515 |
Income taxes payable | 385 | 556 | |
Difference between partnership's tax basis and reported amounts | 91,893 | 88,526 | |
State | |||
Operating Loss Carryforwards | |||
Income taxes payable | 304 | 455 | |
MTI | |||
Operating Loss Carryforwards | |||
Income Tax Expense (Benefit) | 3,080 | 1,268 | |
Net operating loss carryforwards | 67,681 | ||
Net operating loss carryforwards, subject to expiration | 19,379 | ||
Net operating loss carryforwards, not subject to expiration | 48,302 | ||
MTI | State | |||
Operating Loss Carryforwards | |||
Income taxes refundable | 81 | 101 | |
MTI | Federal | |||
Operating Loss Carryforwards | |||
Income taxes refundable | 70 | 0 | |
Texas | |||
Operating Loss Carryforwards | |||
State income taxes | $ 300 | $ 468 | $ 458 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase in income taxes resulting from: | |||
Total income tax expense | $ 3,380 | $ 1,736 | $ 1,900 |
MTI | |||
Operating Loss Carryforwards | |||
"Expected" tax expense | 2,223 | 361 | |
Increase in income taxes resulting from: | |||
State income taxes, net of federal income tax expense | 382 | 327 | |
Other non-deductible items | 384 | 472 | |
Other, net | 91 | 108 | |
Total income tax expense | $ 3,080 | $ 1,268 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Bad debt reserves | $ 26 | $ 59 |
Goodwill and intangibles | 12,523 | 13,893 |
Employee benefits | 57 | 244 |
Interest expense | 0 | 0 |
Tax loss carryforwards | 10,676 | 12,671 |
Other | 129 | 251 |
Subtotal | 23,411 | 27,118 |
Less: Valuation allowance | 0 | 0 |
Total net deferred tax assets | 23,411 | 27,118 |
Deferred tax liabilities: | ||
Property and equipment | (3,590) | (4,861) |
Operating leases | 0 | (4) |
Other | 0 | 0 |
Total deferred tax liabilities | (3,590) | (4,865) |
Net deferred tax assets | $ 19,821 | $ 22,253 |
Business Segments - Narratives
Business Segments - Narratives (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Acquisition | |||
Number of reporting units | segment | 4 | ||
Total revenues | $ 882,431 | $ 672,142 | $ 847,118 |
Natural gas liquids | |||
Business Acquisition | |||
Total revenues | 414,043 | 247,479 | 366,502 |
One customers | Revenue | Customer concentration risk | Natural gas liquids | |||
Business Acquisition | |||
Total revenues | $ 140,324 | $ 74,722 | $ 112,280 |
Business Segments - Income Stat
Business Segments - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information | |||
Total revenues | $ 882,431 | $ 672,142 | $ 847,118 |
Depreciation and Amortization | 56,751 | 61,462 | 60,060 |
Operating Income (Loss) after Eliminations | 57,280 | 46,502 | 58,104 |
Capital Expenditures and Plant Turnaround Costs | 22,929 | 26,777 | 37,923 |
Operating Revenues | |||
Segment Reporting Information | |||
Total revenues | 905,894 | 696,830 | 877,895 |
Intersegment Eliminations | |||
Segment Reporting Information | |||
Total revenues | (23,463) | (24,688) | (30,777) |
Indirect selling, general, and administrative | |||
Segment Reporting Information | |||
Depreciation and Amortization | 0 | 0 | 0 |
Operating Income (Loss) after Eliminations | (16,129) | (17,909) | (17,981) |
Capital Expenditures and Plant Turnaround Costs | 0 | 0 | 0 |
Terminalling and storage | |||
Segment Reporting Information | |||
Total revenues | 179,032 | 184,164 | 209,654 |
Depreciation and Amortization | 28,210 | 29,489 | 30,952 |
Operating Income (Loss) after Eliminations | 10,785 | 22,153 | 16,732 |
Capital Expenditures and Plant Turnaround Costs | 9,582 | 11,619 | 12,987 |
Terminalling and storage | Operating Revenues | |||
Segment Reporting Information | |||
Total revenues | 185,629 | 191,041 | 216,313 |
Terminalling and storage | Intersegment Eliminations | |||
Segment Reporting Information | |||
Total revenues | (6,597) | (6,877) | (6,659) |
Natural gas liquids | |||
Segment Reporting Information | |||
Total revenues | 414,043 | 247,479 | 366,502 |
Depreciation and Amortization | 2,390 | 2,456 | 2,469 |
Operating Income (Loss) after Eliminations | 38,098 | 22,104 | 44,020 |
Capital Expenditures and Plant Turnaround Costs | 537 | 395 | 1,870 |
Natural gas liquids | Operating Revenues | |||
Segment Reporting Information | |||
Total revenues | 414,043 | 247,484 | 366,502 |
Natural gas liquids | Intersegment Eliminations | |||
Segment Reporting Information | |||
Total revenues | 0 | (5) | 0 |
Sulfur services | |||
Segment Reporting Information | |||
Total revenues | 145,042 | 108,007 | 111,340 |
Depreciation and Amortization | 10,432 | 12,012 | 11,332 |
Operating Income (Loss) after Eliminations | 32,972 | 36,256 | 22,721 |
Capital Expenditures and Plant Turnaround Costs | 7,813 | 7,415 | 14,853 |
Sulfur services | Operating Revenues | |||
Segment Reporting Information | |||
Total revenues | 145,042 | 108,020 | 111,340 |
Sulfur services | Intersegment Eliminations | |||
Segment Reporting Information | |||
Total revenues | 0 | (13) | 0 |
Transportation | |||
Segment Reporting Information | |||
Total revenues | 144,314 | 132,492 | 159,622 |
Depreciation and Amortization | 15,719 | 17,505 | 15,307 |
Operating Income (Loss) after Eliminations | (8,446) | (16,102) | (7,388) |
Capital Expenditures and Plant Turnaround Costs | 4,997 | 7,348 | 8,213 |
Transportation | Operating Revenues | |||
Segment Reporting Information | |||
Total revenues | 161,180 | 150,285 | 183,740 |
Transportation | Intersegment Eliminations | |||
Segment Reporting Information | |||
Total revenues | $ (16,866) | $ (17,793) | $ (24,118) |
Business Segments - Balance She
Business Segments - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Total assets: | ||
Total assets | $ 579,861 | $ 579,638 |
Terminalling and storage | ||
Total assets: | ||
Total assets | 248,194 | 252,794 |
Natural gas liquids | ||
Total assets: | ||
Total assets | 78,483 | 80,737 |
Sulfur services | ||
Total assets: | ||
Total assets | 108,007 | 94,154 |
Transportation | ||
Total assets: | ||
Total assets | $ 145,177 | $ 151,953 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jan. 25, 2022$ / shares |
Subsequent Event | |
Dividends declared (in dollars per share) | $ 0.005 |
Annualized dividends declared (in dollars per share) | $ 0.02 |