Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 38,850,750 | |
Entity Central Index Key | 0001176334 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED AND CONDENSED BALA
CONSOLIDATED AND CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash | $ 45 | $ 52 |
Accounts and other receivables, less allowance for doubtful accounts of $448 and $311, respectively | 77,148 | 84,199 |
Inventories | 135,638 | 62,120 |
Due from affiliates | 2,393 | 14,409 |
Other current assets | 17,134 | 12,908 |
Total current assets | 232,358 | 173,688 |
Property, plant and equipment, at cost | 904,159 | 898,770 |
Accumulated depreciation | (578,277) | (553,300) |
Property, plant and equipment, net | 325,882 | 345,470 |
Goodwill | 16,823 | 16,823 |
Right-of-use assets | 33,817 | 21,861 |
Deferred income taxes, net | 16,210 | 19,821 |
Other assets, net | 2,895 | 2,198 |
Total assets | 627,985 | 579,861 |
Liabilities and Partners’ Capital (Deficit) | ||
Current installments of long-term debt and finance lease obligations | 200,651 | 280 |
Trade and other accounts payable | 74,056 | 70,342 |
Product exchange payables | 711 | 1,406 |
Due to affiliates | 13,777 | 1,824 |
Income taxes payable | 613 | 385 |
Other accrued liabilities | 21,020 | 29,850 |
Total current liabilities | 310,828 | 104,087 |
Long-term debt, net | 342,566 | 498,871 |
Finance lease obligations | 0 | 9 |
Operating lease liabilities | 25,485 | 15,704 |
Other long-term obligations | 8,323 | 9,227 |
Total liabilities | 687,202 | 627,898 |
Commitments and contingencies | ||
Partners’ capital (deficit) | (59,217) | (48,853) |
Accumulated other comprehensive income (loss) | 0 | 816 |
Total partners’ capital (deficit) | (59,217) | (48,037) |
Total liabilities and partners' capital (deficit) | $ 627,985 | $ 579,861 |
CONSOLIDATED AND CONDENSED BA_2
CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 448 | $ 311 |
CONSOLIDATED AND CONDENSED STAT
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Revenues: | |||||
Revenues | $ 229,305 | $ 211,258 | $ 775,502 | $ 596,525 | |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | 152,187 | 129,570 | 480,695 | 350,414 | |
Expenses: | |||||
Operating expenses | [1] | 66,158 | 50,098 | 186,735 | 142,045 |
Selling, general and administrative | [1] | 10,273 | 9,739 | 31,420 | 29,308 |
Depreciation and amortization | 13,721 | 13,945 | 43,007 | 42,862 | |
Total costs and expenses | 242,339 | 203,352 | 741,857 | 564,629 | |
Other operating income (loss), net | 790 | 61 | 1,050 | (610) | |
Gain on involuntary conversion of property, plant and equipment | 0 | 186 | 0 | 186 | |
Operating income (loss) | (12,244) | 8,153 | 34,695 | 31,472 | |
Other income (expense): | |||||
Interest expense, net | (13,906) | (14,110) | (39,181) | (40,372) | |
Other, net | (2) | 0 | (4) | (1) | |
Total other expense | (13,908) | (14,110) | (39,185) | (40,373) | |
Net loss before taxes | (26,152) | (5,957) | (4,490) | (8,901) | |
Income tax expense | (1,891) | (954) | (5,469) | (2,111) | |
Net loss | (28,043) | (6,911) | (9,959) | (11,012) | |
Less general partner's interest in net loss | 561 | 138 | 199 | 220 | |
Less loss allocable to unvested restricted units | 90 | 20 | 39 | 30 | |
Limited partners' interest in net loss | $ (27,392) | $ (6,753) | $ (9,721) | $ (10,762) | |
Net loss per unit attributable to limited partners - basic (in dollars per share) | $ (0.71) | $ (0.17) | $ (0.25) | $ (0.28) | |
Net loss per unit attributable to limited partners - diluted (in dollars per share) | $ (0.71) | $ (0.17) | $ (0.25) | $ (0.28) | |
Weighted average limited partner units - basic (in shares) | 38,726,388 | 38,687,874 | 38,725,933 | 38,689,434 | |
Weighted average limited partner units - diluted (in shares) | 38,726,388 | 38,687,874 | 38,725,933 | 38,689,434 | |
Terminalling and storage | |||||
Revenues: | |||||
Revenues | [1] | $ 20,007 | $ 18,980 | $ 59,859 | $ 56,060 |
Transportation | |||||
Revenues: | |||||
Revenues | [1] | 58,993 | 39,079 | 161,535 | 103,820 |
Sulfur services | |||||
Revenues: | |||||
Revenues | 3,085 | 2,950 | 9,253 | 8,849 | |
Product sales | |||||
Revenues: | |||||
Revenues | [1] | 147,220 | 150,249 | 544,855 | 427,796 |
Natural gas liquids | |||||
Revenues: | |||||
Revenues | [1] | 80,891 | 91,764 | 299,034 | 257,081 |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | [1] | 94,668 | 85,137 | 293,350 | 225,862 |
Sulfur services | |||||
Revenues: | |||||
Revenues | [1] | 25,783 | 27,887 | 135,691 | 95,109 |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | [1] | 25,230 | 20,266 | 100,078 | 65,657 |
Terminalling and storage | |||||
Revenues: | |||||
Revenues | [1] | 40,546 | 30,598 | 110,130 | 75,606 |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | [1] | $ 32,289 | $ 24,167 | $ 87,267 | $ 58,895 |
[1]Related Party Transactions Included Above Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues:* Terminalling and storage $ 16,065 $ 15,866 $ 49,685 $ 46,741 Transportation 7,111 5,564 20,862 14,463 Product Sales 61 68 477 253 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,616 2,441 7,884 7,379 Terminalling and storage 10,202 7,259 30,062 18,863 Expenses: Operating expenses 23,856 20,088 68,682 58,046 Selling, general and administrative 7,626 7,659 23,932 23,624 |
CONSOLIDATED AND CONDENSED ST_2
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS (Unaudited) - Related Party Transactions (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Revenues: | |||||
Revenues | $ 229,305 | $ 211,258 | $ 775,502 | $ 596,525 | |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | 152,187 | 129,570 | 480,695 | 350,414 | |
Expenses: | |||||
Operating expenses | 23,856 | 20,088 | 68,682 | 58,046 | |
Selling, general and administrative | 7,626 | 7,659 | 23,932 | 23,624 | |
Terminalling and storage | |||||
Revenues: | |||||
Revenues | [1] | 20,007 | 18,980 | 59,859 | 56,060 |
Transportation | |||||
Revenues: | |||||
Revenues | [1] | 58,993 | 39,079 | 161,535 | 103,820 |
Product Sales | |||||
Revenues: | |||||
Revenues | [1] | 147,220 | 150,249 | 544,855 | 427,796 |
Sulfur services | |||||
Revenues: | |||||
Revenues | [1] | 25,783 | 27,887 | 135,691 | 95,109 |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | [1] | 25,230 | 20,266 | 100,078 | 65,657 |
Terminalling and storage | |||||
Revenues: | |||||
Revenues | [1] | 40,546 | 30,598 | 110,130 | 75,606 |
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | [1] | 32,289 | 24,167 | 87,267 | 58,895 |
Related Party | |||||
Expenses: | |||||
Operating expenses | 23,856 | 20,088 | 68,682 | 58,046 | |
Related Party | Terminalling and storage | |||||
Revenues: | |||||
Revenues | 16,065 | 15,866 | 49,685 | 46,741 | |
Expenses: | |||||
Operating expenses | 4,805 | 4,284 | 13,835 | 12,513 | |
Related Party | Transportation | |||||
Revenues: | |||||
Revenues | 7,111 | 5,564 | 20,862 | 14,463 | |
Expenses: | |||||
Operating expenses | 17,220 | 13,949 | 48,954 | 40,652 | |
Related Party | Product Sales | |||||
Revenues: | |||||
Revenues | 61 | 68 | 477 | 253 | |
Related Party | Sulfur services | |||||
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | 2,616 | 2,441 | 7,884 | 7,379 | |
Expenses: | |||||
Operating expenses | 1,294 | 1,321 | 4,328 | 3,370 | |
Related Party | Terminalling and storage | |||||
Cost of products sold: (excluding depreciation and amortization) | |||||
Cost of products sold | $ 10,202 | $ 7,259 | $ 30,062 | $ 18,863 | |
[1]Related Party Transactions Included Above Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues:* Terminalling and storage $ 16,065 $ 15,866 $ 49,685 $ 46,741 Transportation 7,111 5,564 20,862 14,463 Product Sales 61 68 477 253 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,616 2,441 7,884 7,379 Terminalling and storage 10,202 7,259 30,062 18,863 Expenses: Operating expenses 23,856 20,088 68,682 58,046 Selling, general and administrative 7,626 7,659 23,932 23,624 |
CONSOLIDATED AND CONDENSED ST_3
CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (28,043) | $ (6,911) | $ (9,959) | $ (11,012) |
Changes in fair values of commodity cash flow hedges | 0 | (5,999) | 0 | (5,999) |
Commodity cash flow hedging (gains) reclassified to earnings | (167) | 0 | (816) | 0 |
Comprehensive loss | $ (28,210) | $ (12,910) | $ (10,775) | $ (17,011) |
CONSOLIDATED AND CONDENSED ST_4
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ (48,037) | $ (46,871) | ||
Net loss | $ (28,043) | $ (6,911) | (9,959) | (11,012) |
General partner contribution | 0 | |||
Cash distributions | (595) | (593) | ||
Unit-based compensation | 125 | 336 | ||
Gain reclassified from AOCI into income on commodity cash flow hedges | (816) | |||
Excess purchase price over carrying value of acquired assets | 65 | |||
Purchase of treasury units | (17) | |||
Gain recognized in AOCI on commodity cash flow hedges | (5,999) | |||
Ending balance | (59,217) | (64,156) | (59,217) | (64,156) |
Common Limited | Common | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ (50,741) | $ (48,776) | ||
Beginning balance (in shares) | 38,802,750 | 38,851,174 | ||
Net loss | $ (9,760) | $ (10,792) | ||
Issuance of restricted units (in shares) | 48,000 | 42,168 | ||
Forfeiture of restricted units (in shares) | (83,436) | |||
Cash distributions | $ (583) | $ (581) | ||
Unit-based compensation | 125 | 336 | ||
Excess purchase price over carrying value of acquired assets | 65 | |||
Purchase of treasury units | $ (17) | |||
Purchase of treasury units (in shares) | (7,156) | |||
Ending balance | $ (60,894) | $ (59,830) | $ (60,894) | $ (59,830) |
Ending balance (in shares) | 38,850,750 | 38,802,750 | 38,850,750 | 38,802,750 |
General Partner Amount | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ 1,888 | $ 1,905 | ||
Net loss | (199) | (220) | ||
Cash distributions | (12) | (12) | ||
Ending balance | $ 1,677 | $ 1,673 | 1,677 | 1,673 |
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | 816 | 0 | ||
Gain reclassified from AOCI into income on commodity cash flow hedges | (816) | |||
Gain recognized in AOCI on commodity cash flow hedges | (5,999) | |||
Ending balance | $ 0 | $ (5,999) | $ 0 | $ (5,999) |
CONSOLIDATED AND CONDENSED ST_5
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (9,959) | $ (11,012) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 43,007 | 42,862 |
Amortization of deferred debt issuance costs | 2,356 | 2,585 |
Deferred income tax expense | 3,611 | 1,419 |
(Gain) loss on sale of property, plant and equipment, net | (1,050) | 610 |
Gain on involuntary conversion of property, plant and equipment | 0 | (186) |
Derivative (income) loss | (901) | 1,825 |
Net cash paid for commodity derivatives | 85 | (2,982) |
Non cash unit-based compensation | 125 | 336 |
Change in current assets and liabilities, excluding effects of acquisitions and dispositions: | ||
Accounts and other receivables | 7,076 | (22,924) |
Inventories | (73,518) | (44,353) |
Due from affiliates | 12,016 | 4,674 |
Other current assets | (4,824) | (1,912) |
Trade and other accounts payable | 6,053 | 21,092 |
Product exchange payables | (695) | 1,014 |
Due to affiliates | 11,953 | 5,034 |
Income taxes payable | 228 | (155) |
Other accrued liabilities | (13,435) | (10,536) |
Change in other non-current assets and liabilities | 1,116 | 203 |
Net cash used in operating activities | (16,756) | (12,406) |
Cash flows from investing activities: | ||
Payments for property, plant and equipment | (21,019) | (11,449) |
Payments for plant turnaround costs | (4,262) | (2,679) |
Proceeds from involuntary conversion of property, plant and equipment | 0 | 274 |
Proceeds from sale of property, plant and equipment | 2,209 | 225 |
Net cash used in investing activities | (23,072) | (13,629) |
Cash flows from financing activities: | ||
Payments of long-term debt | (299,089) | (211,790) |
Payments under finance lease obligations | (180) | (2,648) |
Proceeds from long-term debt | 341,000 | 243,500 |
Purchase of treasury units | 0 | (17) |
Payment of debt issuance costs | (30) | (592) |
Excess purchase price over carrying value of acquired assets | (1,285) | 0 |
Cash distributions paid | (595) | (593) |
Net cash provided by financing activities | 39,821 | 27,860 |
Net increase (decrease) in cash | (7) | 1,825 |
Cash at beginning of period | 52 | 4,958 |
Cash at end of period | 45 | 6,783 |
Non-cash additions to property, plant and equipment | $ 2,240 | $ 749 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NATURE OF OPERATIONS AND BASIS OF PRESENTATION 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 United States ("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’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. 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 financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022. 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 and condensed financial statements in conformity with U.S. GAAP. Actual results could differ from those estimates. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS On January 1, 2021, the Partnership adopted Financial Accounting Standards Board ("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. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE The following table disaggregates our revenue by major source: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Terminalling and storage segment Lubricant product sales $ 40,546 $ 30,598 $ 110,130 $ 75,606 Throughput and storage 20,007 18,980 59,859 56,060 $ 60,553 $ 49,578 $ 169,989 $ 131,666 Natural gas liquids segment Natural gas liquids product sales 80,891 91,764 299,034 257,081 $ 80,891 $ 91,764 $ 299,034 $ 257,081 Sulfur services segment Sulfur product sales $ 10,341 $ 7,768 $ 33,975 $ 22,222 Fertilizer product sales 15,442 20,119 101,716 72,887 Sulfur services 3,085 2,950 9,253 8,849 $ 28,868 $ 30,837 $ 144,944 $ 103,958 Transportation segment Land transportation $ 45,604 $ 30,273 $ 124,089 $ 80,715 Inland transportation 11,542 7,465 31,997 20,822 Offshore transportation 1,847 1,341 5,449 2,283 $ 58,993 $ 39,079 $ 161,535 $ 103,820 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 generally 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 Natural Gas Liquids ("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 $ 10,295 $ 42,247 $ 43,571 $ 44,878 $ 46,164 $ 252,476 $ 439,631 Natural Gas Services Natural Gas Liquids 1,457 5,782 5,798 5,782 3,358 — 22,177 Sulfur services Sulfur product sales 4,426 17,703 15,993 3,656 1,931 295 44,004 Total $ 16,178 $ 65,732 $ 65,362 $ 54,316 $ 51,453 $ 252,771 $ 505,812 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Components of inventories at September 30, 2022 and December 31, 2021 were as follows: September 30, December 31, Natural gas liquids $ 85,041 $ 20,034 Sulfur 1,093 612 Fertilizer 21,052 13,005 Lubricants 23,800 23,876 Other 4,652 4,593 $ 135,638 $ 62,120 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT At September 30, 2022 and December 31, 2021, long-term debt consisted of the following: September 30, December 31, $275,000 Credit facility at variable interest rate (5.85% 1 weighted average at September 30, 2022), due August 2023 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 $1,457 and $2,613, respectively 2 $ 200,543 $ 156,887 $53,750 Senior notes due February 2024, 10.0% interest, net of unamortized debt issuance costs of $1,574 and $2,433, respectively, secured 2,3 52,176 51,317 $291,381 Senior notes due February 2025, 11.5% interest, net of unamortized debt issuance costs of $990 and $1,303, respectively, secured 2,3,4 290,390 290,667 Total 543,109 498,871 Less: current portion (200,543) — Total long-term debt, net of current portion $ 342,566 $ 498,871 Current installments of finance lease obligations $ 108 $ 280 Finance lease obligations — 9 Total finance lease obligations $ 108 $ 289 1 Interest rate fluctuates based on LIBOR (set on the date of each advance) or the base prime rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2021 and September 30, 2022 were at LIBOR plus an applicable margin with LIBOR having a floor of 1.00% per annum. 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 currently ranges from 1.75% to 3.00%. The applicable margin for LIBOR borrowings at September 30, 2022 is 3.00%. The applicable margin for LIBOR borrowings effective November 2, 2022 is 3.25%. The credit facility contains various covenants that 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 on 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 September 30, 2022 and December 31, 2021, respectively. 3 The indentures for each of the outstanding series of 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 April 14, 2022, the Partnership completed the payment of an aggregate principal amount of approximately $589, or approximately 0.20%, of its 11.50% Senior Secured Second Lien Notes due 2025 (the “2025 Notes”), pursuant to its cash tender offer (the “Excess Cash Flow Offer”) to purchase up to $9,305 aggregate principal amount of the 2025 Notes. The purchase price for the tendered 2025 Notes was 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the purchase date. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
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 Right-of-Use 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. Our leases have remaining lease terms of 1 year to 14 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 three and nine months ended September 30, 2022 and 2021 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2022 2021 2022 2021 Operating lease cost $ 2,760 $ 2,485 $ 7,571 $ 6,987 Finance lease cost: Amortization of right-of-use assets $ 24 25 $ 74 140 Interest on lease liabilities $ 1 5 $ 8 21 Short-term lease cost $ 3,157 2,324 $ 8,662 7,905 Variable lease cost $ 48 $ 28 $ 132 $ 87 Total lease cost $ 5,990 $ 4,867 $ 16,447 $ 15,140 Supplemental balance sheet information related to leases at September 30, 2022 and December 31, 2021 was as follows: September 30, December 31, 2021 Operating Leases Operating lease right-of-use assets $ 33,817 $ 21,861 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 8,752 $ 6,600 Operating lease liabilities $ 25,485 15,704 Total operating lease liabilities $ 34,237 $ 22,304 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 1,071 Accumulated depreciation $ (438) (364) Property, plant and equipment, net $ 633 $ 707 Current installments of finance lease obligations $ 108 $ 280 Finance lease obligations $ — 9 Total finance lease obligations $ 108 $ 289 The Partnership’s future minimum lease obligations as of September 30, 2022 consist of the following: Operating Leases Finance Leases Year 1 $ 10,899 $ 109 Year 2 8,161 — Year 3 6,033 — Year 4 5,105 — Year 5 3,512 — Thereafter 7,457 — Total $ 41,167 $ 109 Less amounts representing interest costs (6,930) (1) Total lease liability $ 34,237 $ 108 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 September 30, 2022 are as follows: 2022 - $6,549; 2023 - $16,994; 2024 - $15,442; 2025 - $14,862; 2026 - $8,997; subsequent years - $32,936. |
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 Right-of-Use 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. Our leases have remaining lease terms of 1 year to 14 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 three and nine months ended September 30, 2022 and 2021 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2022 2021 2022 2021 Operating lease cost $ 2,760 $ 2,485 $ 7,571 $ 6,987 Finance lease cost: Amortization of right-of-use assets $ 24 25 $ 74 140 Interest on lease liabilities $ 1 5 $ 8 21 Short-term lease cost $ 3,157 2,324 $ 8,662 7,905 Variable lease cost $ 48 $ 28 $ 132 $ 87 Total lease cost $ 5,990 $ 4,867 $ 16,447 $ 15,140 Supplemental balance sheet information related to leases at September 30, 2022 and December 31, 2021 was as follows: September 30, December 31, 2021 Operating Leases Operating lease right-of-use assets $ 33,817 $ 21,861 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 8,752 $ 6,600 Operating lease liabilities $ 25,485 15,704 Total operating lease liabilities $ 34,237 $ 22,304 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 1,071 Accumulated depreciation $ (438) (364) Property, plant and equipment, net $ 633 $ 707 Current installments of finance lease obligations $ 108 $ 280 Finance lease obligations $ — 9 Total finance lease obligations $ 108 $ 289 The Partnership’s future minimum lease obligations as of September 30, 2022 consist of the following: Operating Leases Finance Leases Year 1 $ 10,899 $ 109 Year 2 8,161 — Year 3 6,033 — Year 4 5,105 — Year 5 3,512 — Thereafter 7,457 — Total $ 41,167 $ 109 Less amounts representing interest costs (6,930) (1) Total lease liability $ 34,237 $ 108 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 September 30, 2022 are as follows: 2022 - $6,549; 2023 - $16,994; 2024 - $15,442; 2025 - $14,862; 2026 - $8,997; subsequent years - $32,936. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | SUPPLEMENTAL BALANCE SHEET INFORMATION Components of "Other accrued liabilities" were as follows: September 30, December 31, 2021 Accrued interest $ 5,223 $ 15,135 Asset retirement obligations — 261 Property and other taxes payable 4,265 4,631 Accrued payroll 2,265 2,973 Operating lease liabilities 8,752 6,600 Other 515 250 $ 21,020 $ 29,850 The schedule below summarizes the changes in our asset retirement obligations: September 30, 2022 Asset retirement obligations as of December 31, 2021 $ 9,072 Additions to asset retirement obligations — Accretion expense 286 Liabilities settled (4,454) Ending asset retirement obligations 4,904 Current portion of asset retirement obligations 1 — Long-term portion of asset retirement obligations 2 $ 4,904 1 The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets. 2 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
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 term at 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 of occurring, 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 has historically entered into hedging transactions to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs and settle against the applicable pricing source for each grade and location. At September 30, 2022 and December 31, 2021, the Partnership had instruments totaling a gross notional quantity of 0 barrels. 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 and Condensed Balance Sheets: Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location September 30, 2022 December 31, 2021 Balance Sheet Location September 30, 2022 December 31, 2021 Derivatives designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ — Fair value of derivatives $ — $ — The following table summarizes the gain (loss) recognized in AOCI at September 30, 2022 and December 31, 2021, respectively, and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the three months ended September 30, 2022 and 2021, respectively, 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 2022 2021 2022 2021 Commodity contracts $ — $ 816 Cost of products sold $ 167 $ — Total $ — $ 816 $ 167 $ — The following table summarizes the gain (loss) recognized in AOCI at September 30, 2022 and December 31, 2021, respectively, and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the nine months ended September 30, 2022 and 2021, respectively, 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 2022 2021 2022 2021 Commodity contracts $ — $ 816 Cost of products sold $ 816 $ — Total $ — $ 816 $ 816 $ — The following tables summarize the gain (loss) recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended September 30, 2022 and 2021, respectively: Location of Gain (Loss) Amount of Gain (Loss) Recognized in 2022 2021 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ — $ (941) Total effect of derivatives not designated as hedging instruments $ — $ (941) The following tables summarize the gain (loss) recognized in earnings for derivative instruments not designated as hedging instruments during the nine months ended September 30, 2022 and 2021, respectively: Location of Gain (Loss) Amount of Gain (Loss) Recognized in 2022 2021 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ — $ (1,825) Total effect of derivatives not designated as hedging instruments $ — $ (1,825) |
Partners' Capital (Deficit)
Partners' Capital (Deficit) | 9 Months Ended |
Sep. 30, 2022 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital (Deficit) | PARTNERS' CAPITAL (DEFICIT) As of September 30, 2022, Partners’ capital (deficit) consisted of 38,850,750 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 partner units representing approximately 15.7% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. The partnership agreement of the Partnership (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 $552,058 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 $289,019 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. The general partner was allocated no incentive distributions during the nine months ended September 30, 2022 and 2021. 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. 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 income and 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 allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (28,043) $ (6,911) $ (9,959) $ (11,012) Less general partner’s interest in net loss: Distributions payable on behalf of general partner interest 4 4 12 12 General partner interest in undistributed loss (565) (142) (211) (232) Less loss allocable to unvested restricted units (90) (20) (39) (30) Limited partners’ interest in net loss $ (27,392) $ (6,753) $ (9,721) $ (10,762) The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic weighted average limited partner units outstanding 38,726,388 38,687,874 38,725,933 38,689,434 Dilutive effect of restricted units issued — — — — Total weighted average limited partner diluted units outstanding 38,726,388 38,687,874 38,725,933 38,689,434 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 periods presented. All common unit equivalents were antidilutive for each of the three and nine months ended September 30, 2022 and 2021 because the limited partners were allocated a net loss in these periods. |
Unit Based Awards - Long Term I
Unit Based Awards - Long Term Incentive Plans | 9 Months Ended |
Sep. 30, 2022 | |
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 and condensed financial statements in accordance with certain provisions of ASC 718. Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restricted unit Awards Employees $ — $ — $ — $ 194 Non-employee directors 46 48 125 142 Phantom unit Awards Employees 950 181 2,931 181 Non-employee directors — — — — Total unit-based compensation expense $ 996 $ 229 $ 3,056 $ 517 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. On April 20, 2022, the board of directors of the general partner of the Partnership and the Compensation Committee approved the First Amendment to the Plan, effective as of the same date, which amendment increased the total number of phantom units available for grant under the Plan from 2,000,000 units to 5,000,000 units. On April 20, 2022, 365,000 phantom units and 1,097,500 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 and Condensed Statements of Operations. All of the Partnership's outstanding phantom unit awards at September 30, 2022 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 and Condensed Balance Sheets. As of September 30, 2022, there was a total of $8,359 of unrecognized compensation costs related to non-vested phantom unit awards. These costs are expected to be recognized over a remaining life of 2.32 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 ("Performance Based Restricted Units" or "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 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 issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally vest in equal annual installments over three years of service. All of the Partnership's outstanding restricted unit awards at September 30, 2022 met the criteria to be treated under equity classification. In February 2022, the Partnership issued 11,400 TBRUs to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 3,800 units on January 24, 2023, 2024, 2025, and 2026. In April 2022, the Partnership issued 13,800 TBRUs to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 4,600 units on January 24, 2023, 2024, 2025, and 2026. 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 nine months ended September 30, 2022 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of period 114,876 $ 3.65 Granted (TBRU) 48,000 $ 2.22 Vested (38,514) $ 4.76 Forfeited — $ — Non-Vested, end of period 124,362 $ 2.75 Aggregate intrinsic value, end of period $ 423 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 three and nine months ended September 30, 2022 and 2021 is provided below: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Aggregate intrinsic value of units vested $ — $ — $ 92 $ 257 Fair value of units vested — — 188 1,418 As of September 30, 2022, there was $234 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 2.26 years. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS As of September 30, 2022, Martin Resource Management Corporation owns 6,114,532 of the Partnership’s common units representing approximately 15.7% of the Partnership’s outstanding limited partner units. Martin Resource Management Corporation controls the Partnership's general partner by virtue of its 100% voting interest in MMGP Holdings, LLC ("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 September 30, 2022 of approximately 15.7% 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 and transactions: 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 of the board of directors of the general partner of the Partnership (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, 2022, through December 31, 2022, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $13,491. The Partnership reimbursed Martin Resource Management Corporation for $3,373 and $3,597 of indirect expenses for the three months ended September 30, 2022 and 2021, respectively. The Partnership reimbursed Martin Resource Management Corporation for $10,118 and $10,790 of indirect expenses for the nine months ended September 30, 2022 and 2021, respectively. The Conflicts Committee 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 Agreement. Martin Transport, Inc. ("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. 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. 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. 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 28, 2014, 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. All of these fees (other than the fuel surcharge) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual perio d . 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 three months ended September 30, 2022 and 2021 were $589 and $283, respectively. Amounts paid to East Texas Mack for tractor and trailer lease payments and lease residuals for the nine months ended September 30, 2022 and 2021 were $1,352 and $801, 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 and Condensed 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 captions of the consolidated and condensed financial statements 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 and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: Terminalling and storage $ 16,065 $ 15,866 $ 49,685 $ 46,741 Transportation 7,111 5,564 20,862 14,463 Product sales: Natural gas services (3) — — — Sulfur services 17 28 86 87 Terminalling and storage 47 40 391 166 61 68 477 253 $ 23,237 $ 21,498 $ 71,024 $ 61,457 The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of products sold: Sulfur services $ 2,616 $ 2,441 $ 7,884 $ 7,379 Terminalling and storage 10,202 7,259 30,062 18,863 $ 12,818 $ 9,700 $ 37,946 $ 26,242 The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating expenses: Transportation $ 17,220 $ 13,949 $ 48,954 $ 40,652 Natural gas liquids 537 534 1,565 1,511 Sulfur services 1,294 1,321 4,328 3,370 Terminalling and storage 4,805 4,284 13,835 12,513 $ 23,856 $ 20,088 $ 68,682 $ 58,046 The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Selling, general and administrative: Transportation $ 1,766 $ 1,732 $ 5,569 $ 5,103 Natural gas liquids 597 576 2,132 2,660 Sulfur services 943 813 2,938 2,320 Terminalling and storage 855 878 2,880 2,530 Indirect, including overhead allocation 3,465 3,660 10,413 11,011 $ 7,626 $ 7,659 $ 23,932 $ 23,624 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Partnership has four reportable segments: (1) terminalling and storage, (2) transportation, (3) sulfur services and (4) natural gas liquids. 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 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 1, 2022. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of interest expense. Three Months Ended September 30, 2022 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage 62,149 (1,596) 60,553 6,747 4,735 5,633 Transportation 63,514 (4,521) 58,993 3,598 7,527 1,682 Sulfur services 28,868 — 28,868 2,786 (3,943) 2,204 Natural gas liquids 80,891 — 80,891 590 (16,303) 63 Indirect selling, general and administrative — — — — (4,260) — Total $ 235,422 $ (6,117) $ 229,305 $ 13,721 $ (12,244) $ 9,582 Three Months Ended September 30, 2021 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage 51,226 (1,648) 49,578 7,049 3,269 2,087 Transportation 42,568 (3,489) 39,079 3,710 430 1,086 Sulfur services 30,837 — 30,837 2,594 4,534 1,104 Natural gas liquids 91,764 — 91,764 592 3,994 20 Indirect selling, general and administrative — — — — (4,074) — Total $ 216,395 $ (5,137) $ 211,258 $ 13,945 $ 8,153 $ 4,297 Nine Months Ended September 30, 2022 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 174,942 $ (4,953) $ 169,989 $ 22,084 $ 11,670 $ 12,078 Transportation 176,313 (14,778) 161,535 10,761 15,470 6,196 Sulfur services 144,944 — 144,944 8,377 22,894 5,298 Natural gas liquids 299,037 (3) 299,034 1,785 (2,567) 720 Indirect selling, general and administrative — — — — (12,772) — Total $ 795,236 $ (19,734) $ 775,502 $ 43,007 $ 34,695 $ 24,292 Nine Months Ended September 30, 2021 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 136,584 $ (4,918) $ 131,666 $ 21,150 $ 8,153 $ 6,258 Transportation 114,886 (11,066) 103,820 12,039 (7,782) 2,702 Sulfur services 103,958 — 103,958 7,882 21,136 4,968 Natural gas liquids 257,081 — 257,081 1,791 21,738 481 Indirect selling, general and administrative — — — — (11,773) — Total $ 612,509 $ (15,984) $ 596,525 $ 42,862 $ 31,472 $ 14,409 The Partnership's assets by reportable segment as of September 30, 2022 and December 31, 2021, are as follows: September 30, 2022 December 31, 2021 Total assets: Terminalling and storage $ 242,163 $ 248,194 Transportation 151,932 145,177 Sulfur services 110,471 108,007 Natural gas liquids 123,419 78,483 Total assets $ 627,985 $ 579,861 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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. On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with various lawsuits filed against it, which generally alleged that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil (the “Marketing Lawsuits”). The Partnership disputed and continues to dispute that it has any obligation to defend or indemnify the customer for the customer’s conduct. Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 December 31, 2021 Commodity derivative contracts, net $ — $ — 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 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. September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair 2024 Notes $ 52,176 $ 53,840 $ 51,317 $ 55,220 2025 Notes $ 290,390 $ 287,481 $ 290,667 $ 307,146 Total $ 342,566 $ 341,321 $ 341,984 $ 362,366 |
Condensed Consolidated Financia
Condensed Consolidated Financial Information | 9 Months Ended |
Sep. 30, 2022 | |
Consolidating Financial Statements [Abstract] | |
Condensed Consolidated Financial Information | CONDENSED CONSOLIDATED 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 Senior Notes and any subsidiaries other than the subsidiary guarantors are minor. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Provision for income taxes $ 1,891 $ 954 $ 5,469 $ 2,111 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. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $120 and $59 were recorded in income tax expense for the three months ended September 30, 2022 and 2021, respectively. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $376 and $240 were recorded in income tax expense for the nine months ended September 30, 2022 and 2021, respectively. Deferred taxes applicable to the Texas margin tax relating to the operation of the Partnership are immaterial. MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (the "Taxable Subsidiary"). Total income tax expense of $1,771 and $895, related to the operation of the Taxable Subsidiary, for the three months ended September 30, 2022 and 2021, resulted in an effective income tax rate ("ETR") of 19.94% and 23.42%, respectively. Total income tax expense of $5,093 and $1,871, related to the operation of the Taxable Subsidiary, for the nine months ended September 30, 2022 and 2021, resulted in an effective income tax rate ETR of 21.09% and 29.51%, respectively. The decrease in the ETR for the income taxes during the three and nine months ended September 30, 2022 was primarily due to significantly larger pretax income recorded for both the three and nine months ended September 30, 2022, compared to the same periods in 2021. The increase in the provision for income taxes for both the three and nine months ended September 30, 2022, compared to the same periods in 2021, was primarily due to an increase in income before income taxes in the current period. A current federal income tax expense of $348 and $153, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2022 and 2021, respectively. A current federal income tax expense of $1,071 and $276, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2022 and 2021, respectively. A current state income tax expense of $116 and $81, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2022 and 2021, respectively. A current state income tax expense of $411 and $177, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2022 and 2021, respectively. With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. 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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which 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. A deferred tax expense related to the MTI temporary differences of $1,307 and $661 was recorded for the three months ended September 30, 2022 and 2021, respectively. A deferred tax expense related to the MTI temporary differences of $3,611 and $1,419 was recorded for the nine months ended September 30, 2022 and 2021, respectively. A net deferred tax asset of $16,210 and $19,821, related to the cumulative book and tax temporary differences, existed at September 30, 2022 and December 31, 2021, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Divestiture of Stockton, California Sulfur Terminal. On October 7, 2022, the Partnership closed on the sale of its Stockton Sulfur Terminal to Gulf Terminals LLC for net proceeds of approximately $5,250, which were used to reduce outstanding borrowings under the Partnership's credit facility. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS On January 1, 2021, the Partnership adopted Financial Accounting Standards Board ("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. |
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. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates our revenue by major source: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Terminalling and storage segment Lubricant product sales $ 40,546 $ 30,598 $ 110,130 $ 75,606 Throughput and storage 20,007 18,980 59,859 56,060 $ 60,553 $ 49,578 $ 169,989 $ 131,666 Natural gas liquids segment Natural gas liquids product sales 80,891 91,764 299,034 257,081 $ 80,891 $ 91,764 $ 299,034 $ 257,081 Sulfur services segment Sulfur product sales $ 10,341 $ 7,768 $ 33,975 $ 22,222 Fertilizer product sales 15,442 20,119 101,716 72,887 Sulfur services 3,085 2,950 9,253 8,849 $ 28,868 $ 30,837 $ 144,944 $ 103,958 Transportation segment Land transportation $ 45,604 $ 30,273 $ 124,089 $ 80,715 Inland transportation 11,542 7,465 31,997 20,822 Offshore transportation 1,847 1,341 5,449 2,283 $ 58,993 $ 39,079 $ 161,535 $ 103,820 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 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 $ 10,295 $ 42,247 $ 43,571 $ 44,878 $ 46,164 $ 252,476 $ 439,631 Natural Gas Services Natural Gas Liquids 1,457 5,782 5,798 5,782 3,358 — 22,177 Sulfur services Sulfur product sales 4,426 17,703 15,993 3,656 1,931 295 44,004 Total $ 16,178 $ 65,732 $ 65,362 $ 54,316 $ 51,453 $ 252,771 $ 505,812 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Components of inventories at September 30, 2022 and December 31, 2021 were as follows: September 30, December 31, Natural gas liquids $ 85,041 $ 20,034 Sulfur 1,093 612 Fertilizer 21,052 13,005 Lubricants 23,800 23,876 Other 4,652 4,593 $ 135,638 $ 62,120 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | At September 30, 2022 and December 31, 2021, long-term debt consisted of the following: September 30, December 31, $275,000 Credit facility at variable interest rate (5.85% 1 weighted average at September 30, 2022), due August 2023 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 $1,457 and $2,613, respectively 2 $ 200,543 $ 156,887 $53,750 Senior notes due February 2024, 10.0% interest, net of unamortized debt issuance costs of $1,574 and $2,433, respectively, secured 2,3 52,176 51,317 $291,381 Senior notes due February 2025, 11.5% interest, net of unamortized debt issuance costs of $990 and $1,303, respectively, secured 2,3,4 290,390 290,667 Total 543,109 498,871 Less: current portion (200,543) — Total long-term debt, net of current portion $ 342,566 $ 498,871 Current installments of finance lease obligations $ 108 $ 280 Finance lease obligations — 9 Total finance lease obligations $ 108 $ 289 1 Interest rate fluctuates based on LIBOR (set on the date of each advance) or the base prime rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2021 and September 30, 2022 were at LIBOR plus an applicable margin with LIBOR having a floor of 1.00% per annum. 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 currently ranges from 1.75% to 3.00%. The applicable margin for LIBOR borrowings at September 30, 2022 is 3.00%. The applicable margin for LIBOR borrowings effective November 2, 2022 is 3.25%. The credit facility contains various covenants that 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 on 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 September 30, 2022 and December 31, 2021, respectively. 3 The indentures for each of the outstanding series of 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 April 14, 2022, the Partnership completed the payment of an aggregate principal amount of approximately $589, or approximately 0.20%, of its 11.50% Senior Secured Second Lien Notes due 2025 (the “2025 Notes”), pursuant to its cash tender offer (the “Excess Cash Flow Offer”) to purchase up to $9,305 aggregate principal amount of the 2025 Notes. The purchase price for the tendered 2025 Notes was 100% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but not including, the purchase date. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2022 2021 2022 2021 Operating lease cost $ 2,760 $ 2,485 $ 7,571 $ 6,987 Finance lease cost: Amortization of right-of-use assets $ 24 25 $ 74 140 Interest on lease liabilities $ 1 5 $ 8 21 Short-term lease cost $ 3,157 2,324 $ 8,662 7,905 Variable lease cost $ 48 $ 28 $ 132 $ 87 Total lease cost $ 5,990 $ 4,867 $ 16,447 $ 15,140 |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases at September 30, 2022 and December 31, 2021 was as follows: September 30, December 31, 2021 Operating Leases Operating lease right-of-use assets $ 33,817 $ 21,861 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 8,752 $ 6,600 Operating lease liabilities $ 25,485 15,704 Total operating lease liabilities $ 34,237 $ 22,304 Finance Leases Property, plant and equipment, at cost $ 1,071 $ 1,071 Accumulated depreciation $ (438) (364) Property, plant and equipment, net $ 633 $ 707 Current installments of finance lease obligations $ 108 $ 280 Finance lease obligations $ — 9 Total finance lease obligations $ 108 $ 289 |
Schedule of Future Minimum Lease Obligations, Finance Lease | The Partnership’s future minimum lease obligations as of September 30, 2022 consist of the following: Operating Leases Finance Leases Year 1 $ 10,899 $ 109 Year 2 8,161 — Year 3 6,033 — Year 4 5,105 — Year 5 3,512 — Thereafter 7,457 — Total $ 41,167 $ 109 Less amounts representing interest costs (6,930) (1) Total lease liability $ 34,237 $ 108 |
Schedule of Future Minimum Lease Obligations, Operating Lease | The Partnership’s future minimum lease obligations as of September 30, 2022 consist of the following: Operating Leases Finance Leases Year 1 $ 10,899 $ 109 Year 2 8,161 — Year 3 6,033 — Year 4 5,105 — Year 5 3,512 — Thereafter 7,457 — Total $ 41,167 $ 109 Less amounts representing interest costs (6,930) (1) Total lease liability $ 34,237 $ 108 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Accrued Liabilities | Components of "Other accrued liabilities" were as follows: September 30, December 31, 2021 Accrued interest $ 5,223 $ 15,135 Asset retirement obligations — 261 Property and other taxes payable 4,265 4,631 Accrued payroll 2,265 2,973 Operating lease liabilities 8,752 6,600 Other 515 250 $ 21,020 $ 29,850 |
Schedule of Asset Retirement Obligations | The schedule below summarizes the changes in our asset retirement obligations: September 30, 2022 Asset retirement obligations as of December 31, 2021 $ 9,072 Additions to asset retirement obligations — Accretion expense 286 Liabilities settled (4,454) Ending asset retirement obligations 4,904 Current portion of asset retirement obligations 1 — Long-term portion of asset retirement obligations 2 $ 4,904 1 The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets. 2 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 and Condensed Balance Sheets: Derivative Assets Derivative Liabilities Fair Values Fair Values Balance Sheet Location September 30, 2022 December 31, 2021 Balance Sheet Location September 30, 2022 December 31, 2021 Derivatives designated as hedging instruments: Current: Commodity contracts Fair value of derivatives $ — $ — Fair value of derivatives $ — $ — |
Summary of Gain (Loss) Recognized in AOCI and Reclassification From AOCI | The following table summarizes the gain (loss) recognized in AOCI at September 30, 2022 and December 31, 2021, respectively, and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the three months ended September 30, 2022 and 2021, respectively, 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 2022 2021 2022 2021 Commodity contracts $ — $ 816 Cost of products sold $ 167 $ — Total $ — $ 816 $ 167 $ — The following table summarizes the gain (loss) recognized in AOCI at September 30, 2022 and December 31, 2021, respectively, and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the nine months ended September 30, 2022 and 2021, respectively, 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 2022 2021 2022 2021 Commodity contracts $ — $ 816 Cost of products sold $ 816 $ — Total $ — $ 816 $ 816 $ — |
Effect of Derivative Instruments on the Consolidated Statement of Operations | The following tables summarize the gain (loss) recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended September 30, 2022 and 2021, respectively: Location of Gain (Loss) Amount of Gain (Loss) Recognized in 2022 2021 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ — $ (941) Total effect of derivatives not designated as hedging instruments $ — $ (941) The following tables summarize the gain (loss) recognized in earnings for derivative instruments not designated as hedging instruments during the nine months ended September 30, 2022 and 2021, respectively: Location of Gain (Loss) Amount of Gain (Loss) Recognized in 2022 2021 Derivatives not designated as hedging instruments: Commodity contracts Cost of products sold $ — $ (1,825) Total effect of derivatives not designated as hedging instruments $ — $ (1,825) |
Partners' Capital (Deficit) (Ta
Partners' Capital (Deficit) (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Partners' Capital Notes [Abstract] | |
Reconciliation of Net Income to Partners Interest in Net Income | The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (28,043) $ (6,911) $ (9,959) $ (11,012) Less general partner’s interest in net loss: Distributions payable on behalf of general partner interest 4 4 12 12 General partner interest in undistributed loss (565) (142) (211) (232) Less loss allocable to unvested restricted units (90) (20) (39) (30) Limited partners’ interest in net loss $ (27,392) $ (6,753) $ (9,721) $ (10,762) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic weighted average limited partner units outstanding 38,726,388 38,687,874 38,725,933 38,689,434 Dilutive effect of restricted units issued — — — — Total weighted average limited partner diluted units outstanding 38,726,388 38,687,874 38,725,933 38,689,434 |
Unit Based Awards - Long Term_2
Unit Based Awards - Long Term Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 and condensed financial statements with respect to these plans are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restricted unit Awards Employees $ — $ — $ — $ 194 Non-employee directors 46 48 125 142 Phantom unit Awards Employees 950 181 2,931 181 Non-employee directors — — — — Total unit-based compensation expense $ 996 $ 229 $ 3,056 $ 517 |
Summary of Restricted Unit Activity | A summary of the restricted unit activity for the nine months ended September 30, 2022 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of period 114,876 $ 3.65 Granted (TBRU) 48,000 $ 2.22 Vested (38,514) $ 4.76 Forfeited — $ — Non-Vested, end of period 124,362 $ 2.75 Aggregate intrinsic value, end of period $ 423 |
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 three and nine months ended September 30, 2022 and 2021 is provided below: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Aggregate intrinsic value of units vested $ — $ — $ 92 $ 257 Fair value of units vested — — 188 1,418 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenues: Terminalling and storage $ 16,065 $ 15,866 $ 49,685 $ 46,741 Transportation 7,111 5,564 20,862 14,463 Product sales: Natural gas services (3) — — — Sulfur services 17 28 86 87 Terminalling and storage 47 40 391 166 61 68 477 253 $ 23,237 $ 21,498 $ 71,024 $ 61,457 The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of products sold: Sulfur services $ 2,616 $ 2,441 $ 7,884 $ 7,379 Terminalling and storage 10,202 7,259 30,062 18,863 $ 12,818 $ 9,700 $ 37,946 $ 26,242 The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating expenses: Transportation $ 17,220 $ 13,949 $ 48,954 $ 40,652 Natural gas liquids 537 534 1,565 1,511 Sulfur services 1,294 1,321 4,328 3,370 Terminalling and storage 4,805 4,284 13,835 12,513 $ 23,856 $ 20,088 $ 68,682 $ 58,046 The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Selling, general and administrative: Transportation $ 1,766 $ 1,732 $ 5,569 $ 5,103 Natural gas liquids 597 576 2,132 2,660 Sulfur services 943 813 2,938 2,320 Terminalling and storage 855 878 2,880 2,530 Indirect, including overhead allocation 3,465 3,660 10,413 11,011 $ 7,626 $ 7,659 $ 23,932 $ 23,624 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting by Segment | Three Months Ended September 30, 2022 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage 62,149 (1,596) 60,553 6,747 4,735 5,633 Transportation 63,514 (4,521) 58,993 3,598 7,527 1,682 Sulfur services 28,868 — 28,868 2,786 (3,943) 2,204 Natural gas liquids 80,891 — 80,891 590 (16,303) 63 Indirect selling, general and administrative — — — — (4,260) — Total $ 235,422 $ (6,117) $ 229,305 $ 13,721 $ (12,244) $ 9,582 Three Months Ended September 30, 2021 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage 51,226 (1,648) 49,578 7,049 3,269 2,087 Transportation 42,568 (3,489) 39,079 3,710 430 1,086 Sulfur services 30,837 — 30,837 2,594 4,534 1,104 Natural gas liquids 91,764 — 91,764 592 3,994 20 Indirect selling, general and administrative — — — — (4,074) — Total $ 216,395 $ (5,137) $ 211,258 $ 13,945 $ 8,153 $ 4,297 Nine Months Ended September 30, 2022 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 174,942 $ (4,953) $ 169,989 $ 22,084 $ 11,670 $ 12,078 Transportation 176,313 (14,778) 161,535 10,761 15,470 6,196 Sulfur services 144,944 — 144,944 8,377 22,894 5,298 Natural gas liquids 299,037 (3) 299,034 1,785 (2,567) 720 Indirect selling, general and administrative — — — — (12,772) — Total $ 795,236 $ (19,734) $ 775,502 $ 43,007 $ 34,695 $ 24,292 Nine Months Ended September 30, 2021 Operating Revenues Intersegment Revenues Eliminations Operating Revenues after Eliminations Depreciation and Amortization Operating Income (Loss) after Eliminations Capital Expenditures and Plant Turnaround Costs Terminalling and storage $ 136,584 $ (4,918) $ 131,666 $ 21,150 $ 8,153 $ 6,258 Transportation 114,886 (11,066) 103,820 12,039 (7,782) 2,702 Sulfur services 103,958 — 103,958 7,882 21,136 4,968 Natural gas liquids 257,081 — 257,081 1,791 21,738 481 Indirect selling, general and administrative — — — — (11,773) — Total $ 612,509 $ (15,984) $ 596,525 $ 42,862 $ 31,472 $ 14,409 |
Assets by Segment | The Partnership's assets by reportable segment as of September 30, 2022 and December 31, 2021, are as follows: September 30, 2022 December 31, 2021 Total assets: Terminalling and storage $ 242,163 $ 248,194 Transportation 151,932 145,177 Sulfur services 110,471 108,007 Natural gas liquids 123,419 78,483 Total assets $ 627,985 $ 579,861 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 December 31, 2021 Commodity derivative contracts, net $ — $ — September 30, 2022 December 31, 2021 Carrying Fair Carrying Fair 2024 Notes $ 52,176 $ 53,840 $ 51,317 $ 55,220 2025 Notes $ 290,390 $ 287,481 $ 290,667 $ 307,146 Total $ 342,566 $ 341,321 $ 341,984 $ 362,366 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Provision for income taxes $ 1,891 $ 954 $ 5,469 $ 2,111 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Accounting Policies [Abstract] | |
Number of primary business lines | 4 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Disaggregation of Revenue | |||||
Revenues | $ 229,305 | $ 211,258 | $ 775,502 | $ 596,525 | |
Lubricant product sales | |||||
Disaggregation of Revenue | |||||
Revenues | [1] | 40,546 | 30,598 | 110,130 | 75,606 |
Throughput and storage | |||||
Disaggregation of Revenue | |||||
Revenues | [1] | 20,007 | 18,980 | 59,859 | 56,060 |
Natural gas liquids | |||||
Disaggregation of Revenue | |||||
Revenues | [1] | 80,891 | 91,764 | 299,034 | 257,081 |
Sulfur services | |||||
Disaggregation of Revenue | |||||
Revenues | 3,085 | 2,950 | 9,253 | 8,849 | |
Terminalling and storage segment | |||||
Disaggregation of Revenue | |||||
Revenues | 60,553 | 49,578 | 169,989 | 131,666 | |
Terminalling and storage segment | Lubricant product sales | |||||
Disaggregation of Revenue | |||||
Revenues | 40,546 | 30,598 | 110,130 | 75,606 | |
Terminalling and storage segment | Throughput and storage | |||||
Disaggregation of Revenue | |||||
Revenues | 20,007 | 18,980 | 59,859 | 56,060 | |
Natural gas liquids segment | |||||
Disaggregation of Revenue | |||||
Revenues | 80,891 | 91,764 | 299,034 | 257,081 | |
Natural gas liquids segment | Natural gas liquids | |||||
Disaggregation of Revenue | |||||
Revenues | 80,891 | 91,764 | 299,034 | 257,081 | |
Sulfur services segment | |||||
Disaggregation of Revenue | |||||
Revenues | 28,868 | 30,837 | 144,944 | 103,958 | |
Sulfur services segment | Sulfur product sales | |||||
Disaggregation of Revenue | |||||
Revenues | 10,341 | 7,768 | 33,975 | 22,222 | |
Sulfur services segment | Fertilizer product sales | |||||
Disaggregation of Revenue | |||||
Revenues | 15,442 | 20,119 | 101,716 | 72,887 | |
Sulfur services segment | Sulfur services | |||||
Disaggregation of Revenue | |||||
Revenues | 3,085 | 2,950 | 9,253 | 8,849 | |
Transportation segment | |||||
Disaggregation of Revenue | |||||
Revenues | 58,993 | 39,079 | 161,535 | 103,820 | |
Transportation segment | Land transportation | |||||
Disaggregation of Revenue | |||||
Revenues | 45,604 | 30,273 | 124,089 | 80,715 | |
Transportation segment | Inland transportation | |||||
Disaggregation of Revenue | |||||
Revenues | 11,542 | 7,465 | 31,997 | 20,822 | |
Transportation segment | Offshore transportation | |||||
Disaggregation of Revenue | |||||
Revenues | $ 1,847 | $ 1,341 | $ 5,449 | $ 2,283 | |
[1]Related Party Transactions Included Above Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues:* Terminalling and storage $ 16,065 $ 15,866 $ 49,685 $ 46,741 Transportation 7,111 5,564 20,862 14,463 Product Sales 61 68 477 253 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services 2,616 2,441 7,884 7,379 Terminalling and storage 10,202 7,259 30,062 18,863 Expenses: Operating expenses 23,856 20,088 68,682 58,046 Selling, general and administrative 7,626 7,659 23,932 23,624 |
Revenue - Estimated Revenue Exp
Revenue - Estimated Revenue Expected to be Recognized in Future (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 505,812 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 16,178 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
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 | $ 65,732 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 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 | $ 65,362 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 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 | $ 54,316 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 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 | $ 51,453 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 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 | $ 252,771 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Terminalling and storage segment | Terminalling and storage | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 439,631 |
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 10,295 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Terminalling and storage segment | Terminalling and storage | 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 | $ 42,247 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Terminalling and storage segment | Terminalling and storage | 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 | $ 43,571 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Terminalling and storage segment | Terminalling and storage | 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 | $ 44,878 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Terminalling and storage segment | Terminalling and storage | 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 | $ 46,164 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Terminalling and storage segment | Terminalling and storage | 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 | $ 252,476 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Natural gas liquids | Natural gas liquids | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 22,177 |
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 1,457 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Natural gas liquids | Natural gas liquids | 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 | $ 5,782 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural gas liquids | Natural gas liquids | 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 | $ 5,798 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural gas liquids | Natural gas liquids | 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 | $ 5,782 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural gas liquids | Natural gas liquids | 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 | $ 3,358 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural gas liquids | Natural gas liquids | 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 | $ 0 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Sulfur services segment | Sulfur services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 44,004 |
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation | $ 4,426 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Sulfur services segment | Sulfur services | 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 | $ 17,703 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Sulfur services segment | Sulfur services | 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 | $ 15,993 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Sulfur services segment | Sulfur services | 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 | $ 3,656 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Sulfur services segment | Sulfur services | 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 | $ 1,931 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Sulfur services segment | Sulfur services | 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 | $ 295 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Natural gas liquids | $ 85,041 | $ 20,034 |
Sulfur | 1,093 | 612 |
Fertilizer | 21,052 | 13,005 |
Lubricants | 23,800 | 23,876 |
Other | 4,652 | 4,593 |
Inventories | $ 135,638 | $ 62,120 |
Debt (Details)
Debt (Details) | 9 Months Ended | |||||
Nov. 02, 2022 | Apr. 14, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 16, 2021 USD ($) | Jul. 15, 2021 USD ($) | |
Debt Instrument | ||||||
Total long-term debt | $ 543,109,000 | $ 498,871,000 | ||||
Less: current portion | (200,543,000) | 0 | ||||
Total long-term debt, net of current portion | 342,566,000 | 498,871,000 | ||||
Current installments of finance lease obligations | 108,000 | 280,000 | ||||
Finance lease obligations | 0 | 9,000 | ||||
Total lease liability | 108,000 | 289,000 | ||||
Credit Facility | ||||||
Debt Instrument | ||||||
Total long-term debt | 200,543,000 | 156,887,000 | ||||
Maximum borrowing capacity | $ 275,000,000 | $ 275,000,000 | $ 300,000,000 | |||
Weighted average interest rate (percent) | 5.85% | |||||
Unamortized debt issuance costs | $ 1,457,000 | $ 2,613,000 | ||||
Credit Facility | LIBOR | ||||||
Debt Instrument | ||||||
Interest rate floor (percent) | 1% | 1% | ||||
Applicable margins (percent) | 3% | |||||
Credit Facility | LIBOR | Subsequent Event | ||||||
Debt Instrument | ||||||
Applicable margins (percent) | 3.25% | |||||
Credit Facility | LIBOR | Minimum | ||||||
Debt Instrument | ||||||
Applicable margins (percent) | 2.75% | |||||
Credit Facility | LIBOR | Maximum | ||||||
Debt Instrument | ||||||
Applicable margins (percent) | 4% | |||||
Credit Facility | Prime Rate | Minimum | ||||||
Debt Instrument | ||||||
Applicable margins (percent) | 1.75% | |||||
Credit Facility | Prime Rate | Maximum | ||||||
Debt Instrument | ||||||
Applicable margins (percent) | 3% | |||||
Senior Notes | Senior Notes 10.0% | ||||||
Debt Instrument | ||||||
Total long-term debt | $ 52,176,000 | $ 51,317,000 | ||||
Unamortized debt issuance costs | 1,574,000 | 2,433,000 | ||||
Face amount | $ 53,750,000 | |||||
Stated interest rate (percent) | 10% | |||||
Senior Notes | Senior Note 11.5% | ||||||
Debt Instrument | ||||||
Total long-term debt | $ 290,390,000 | 290,667,000 | ||||
Unamortized debt issuance costs | 990,000 | $ 1,303,000 | ||||
Face amount | $ 9,305,000 | $ 291,381,000 | ||||
Stated interest rate (percent) | 11.50% | 11.50% | ||||
Repayments of principal debt | $ 589,000 | |||||
Repayment of debt percentage | 0.0020 | |||||
Purchase price percent tendered notes | 1 |
Debt - Narratives (Details)
Debt - Narratives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Cash paid for interest | $ 22,628,000 | $ 22,635,000 | $ 46,738,000 | $ 48,630,000 |
Capitalized interest | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle | |
Lease termination term | 1 year |
Non-cancelable revenue arrangements, future minimum revenues, 2022 | $ 6,549 |
Non-cancelable revenue arrangements, future minimum revenues, 2023 | 16,994 |
Non-cancelable revenue arrangements, future minimum revenues, 2024 | 15,442 |
Non-cancelable revenue arrangements, future minimum revenues, 2025 | 14,862 |
Non-cancelable revenue arrangements, future minimum revenues, 2026 | 8,997 |
Non-cancelable revenue arrangements, future minimum revenues, subsequent years | $ 32,936 |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle | |
Remaining lease term (years) | 1 year |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle | |
Remaining lease term (years) | 14 years |
Lease renewal term (years) | 5 years |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,760 | $ 2,485 | $ 7,571 | $ 6,987 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 24 | 25 | 74 | 140 |
Interest on lease liabilities | 1 | 5 | 8 | 21 |
Short-term lease cost | 3,157 | 2,324 | 8,662 | 7,905 |
Variable lease cost | 48 | 28 | 132 | 87 |
Total lease cost | $ 5,990 | $ 4,867 | $ 16,447 | $ 15,140 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Operating lease right-of-use assets | $ 33,817 | $ 21,861 |
Current portion of operating lease liabilities included in "Other accrued liabilities" | 8,752 | 6,600 |
Operating lease liabilities | 25,485 | 15,704 |
Total operating lease liabilities | $ 34,237 | $ 22,304 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Finance Leases | ||
Property, plant and equipment, at cost | $ 1,071 | $ 1,071 |
Accumulated depreciation | (438) | (364) |
Property, plant and equipment, net | 633 | 707 |
Current installments of finance lease obligations | 108 | 280 |
Finance lease obligations | 0 | 9 |
Total finance lease obligations | $ 108 | $ 289 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt and Lease Obligation, Current | Long-Term Debt and Lease Obligation, Current |
Leases - Future Minimum Lease O
Leases - Future Minimum Lease Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
Year 1 | $ 10,899 | |
Year 2 | 8,161 | |
Year 3 | 6,033 | |
Year 4 | 5,105 | |
Year 5 | 3,512 | |
Thereafter | 7,457 | |
Total | 41,167 | |
Less amounts representing interest costs | (6,930) | |
Total lease liability | 34,237 | $ 22,304 |
Finance Leases | ||
Year 1 | 109 | |
Year 2 | 0 | |
Year 3 | 0 | |
Year 4 | 0 | |
Year 5 | 0 | |
Thereafter | 0 | |
Total | 109 | |
Less amounts representing interest costs | (1) | |
Total lease liability | $ 108 | $ 289 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued interest | $ 5,223 | $ 15,135 |
Asset retirement obligations | 0 | 261 |
Property and other taxes payable | 4,265 | 4,631 |
Accrued payroll | 2,265 | 2,973 |
Operating lease liabilities | 8,752 | 6,600 |
Other | 515 | 250 |
Total other accrued liabilities | $ 21,020 | $ 29,850 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis | ||
Asset retirement obligations as of December 31, 2021 | $ 9,072 | |
Additions to asset retirement obligations | 0 | |
Accretion expense | 286 | |
Liabilities settled | (4,454) | |
Ending asset retirement obligations | 4,904 | |
Current portion of asset retirement obligations | 0 | $ (261) |
Long-term portion of asset retirement obligations | $ 4,904 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - bbl bbl in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Commodity contracts | ||
Derivatives, Fair Value | ||
Notional quantity (in bbl) | 0 | 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Designated as Hedging Instrument - Commodity contracts - Fair value of derivatives - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value | ||
Derivative Assets | $ 0 | $ 0 |
Derivative Liabilities | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Derivative Financial Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | ||||
Amount of Gain (Loss) Recognized in AOCI | $ 0 | $ (5,999) | $ 0 | $ (5,999) |
Amount of Gain (Loss) Reclassified from AOCI into Income | 167 | 0 | 816 | 0 |
Designated as Hedging Instrument | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | ||||
Amount of Gain (Loss) Recognized in AOCI | 0 | 816 | 0 | 816 |
Amount of Gain (Loss) Reclassified from AOCI into Income | 167 | 0 | 816 | 0 |
Commodity contracts | Designated as Hedging Instrument | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | ||||
Amount of Gain (Loss) Recognized in AOCI | 0 | 816 | 0 | 816 |
Commodity contracts | Cost of products sold | Designated as Hedging Instrument | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | ||||
Amount of Gain (Loss) Reclassified from AOCI into Income | $ 167 | $ 0 | $ 816 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Statement of Operations Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ (941) | $ 0 | $ (1,825) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ (941) | $ 0 | $ (1,825) |
Partners' Capital (Deficit) - N
Partners' Capital (Deficit) - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2019 | |
Limited Partners' Capital Account | |||
Common limited partner units (in shares) | 38,850,750 | ||
Cash distributions | $ 595 | $ 593 | |
Martin Resource Management | |||
Limited Partners' Capital Account | |||
Common limited partner units (in shares) | 6,114,532 | ||
Martin Resource Management Corporation | |||
Limited Partners' Capital Account | |||
Ownership interest (percentage) | 98% | ||
Martin Resource Management Corporation | Martin Resource Management Corporation | |||
Limited Partners' Capital Account | |||
Purchase price | $ 552,058 | ||
Cash distributions | $ 289,019 | ||
MMGP LLC | |||
Limited Partners' Capital Account | |||
General partner interest percentage | 2% | ||
MMGP LLC | Martin Resource Management | |||
Limited Partners' Capital Account | |||
Ownership interest (percentage) | 15.70% | ||
General partner interest percentage | 2% |
Partners' Capital (Deficit) - I
Partners' Capital (Deficit) - Incentive Distribution Rights and Distributions of Available Cash (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Limited Partners' Capital Account | ||
Distribution period | 45 days | |
MMGP | ||
Limited Partners' Capital Account | ||
Incentive distribution | $ 0 | $ 0 |
MMGP LLC | ||
Limited Partners' Capital Account | ||
General partner interest percentage | 2% | |
MMGP LLC | MMGP | ||
Limited Partners' Capital Account | ||
General partner interest percentage | 2% |
Partners' Capital (Deficit) -_2
Partners' Capital (Deficit) - Net Income Per Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Partners' Capital Notes [Abstract] | ||||
Net loss | $ (28,043) | $ (6,911) | $ (9,959) | $ (11,012) |
Less general partner’s interest in net loss: | ||||
Distributions payable on behalf of general partner interest | 4 | 4 | 12 | 12 |
General partner interest in undistributed loss | (565) | (142) | (211) | (232) |
Less loss allocable to unvested restricted units | (90) | (20) | (39) | (30) |
Limited partners' interest in net loss | $ (27,392) | $ (6,753) | $ (9,721) | $ (10,762) |
Basic weighted average limited partner units outstanding (in shares) | 38,726,388 | 38,687,874 | 38,725,933 | 38,689,434 |
Dilutive effect of restricted units issued (in shares) | 0 | 0 | 0 | 0 |
Total weighted average limited partner diluted units outstanding (in shares) | 38,726,388 | 38,687,874 | 38,725,933 | 38,689,434 |
Unit Based Awards - Long Term_3
Unit Based Awards - Long Term Incentive Plans - Schedule of Compensation Costs (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total unit-based compensation expense | $ 996 | $ 229 | $ 3,056 | $ 517 |
Restricted unit Awards | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total unit-based compensation expense | 0 | 0 | 0 | 194 |
Restricted unit Awards | Non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total unit-based compensation expense | 46 | 48 | 125 | 142 |
Phantom unit Awards | Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total unit-based compensation expense | 950 | 181 | 2,931 | 181 |
Phantom unit Awards | Non-employee directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Total unit-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Unit Based Awards - Long Term_4
Unit Based Awards - Long Term Incentive Plans - Narrative (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | |||||||||
Jan. 24, 2026 shares | Jan. 24, 2025 shares | Jan. 24, 2024 shares | Jan. 24, 2023 shares | Apr. 20, 2022 shares | Jul. 21, 2021 shares | Apr. 30, 2022 director shares | Feb. 28, 2022 director shares | Sep. 30, 2022 USD ($) shares | Apr. 19, 2022 shares | May 26, 2017 shares | |
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 | ||||||||||
Shares available for grant (in shares) | 5,000,000 | 2,000,000 | |||||||||
Unrecognized compensation cost related to non-vested restricted units | $ | $ 8,359 | ||||||||||
Weighted average period for recognition (in years) | 2 years 3 months 25 days | ||||||||||
Phantom unit Awards | Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Granted, number of units (in shares) | 365,000 | 620,000 | |||||||||
Restricted unit Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Unrecognized compensation cost related to non-vested restricted units | $ | $ 234 | ||||||||||
Weighted average period for recognition (in years) | 2 years 3 months 3 days | ||||||||||
Vested, number of units (in shares) | 38,514 | ||||||||||
Restricted unit Awards | Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Vesting period (in years) | 3 years | ||||||||||
Restricted unit Awards | Non-employee directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Vesting period (in years) | 4 years | ||||||||||
February Time Based Restricted Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Number of independent directors receiving grants | director | 3 | ||||||||||
February Time Based Restricted Units | Non-employee directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Granted, number of units (in shares) | 11,400 | ||||||||||
February Time Based Restricted Units | Non-employee directors | Scenario, Forecast | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Vested, number of units (in shares) | 3,800 | 3,800 | 3,800 | 3,800 | |||||||
April Time Based Restricted Units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Number of independent directors receiving grants | director | 3 | ||||||||||
April Time Based Restricted Units | Non-employee directors | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Granted, number of units (in shares) | 13,800 | ||||||||||
April Time Based Restricted Units | Non-employee directors | Scenario, Forecast | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Vested, number of units (in shares) | 4,600 | 4,600 | 4,600 | 4,600 | |||||||
Phantom Units Appreciation Rights | Employees | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||||||
Granted, number of units (in shares) | 1,097,500 | 1,245,000 |
Unit Based Awards - Long Term_5
Unit Based Awards - Long Term Incentive Plans - Restricted Unit Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Restricted unit Awards | |
Number of Units | |
Non-vested, beginning of period (in shares) | shares | 114,876 |
Vested (in shares) | shares | (38,514) |
Forfeited (in shares) | shares | 0 |
Non-vested, end of period (in shares) | shares | 124,362 |
Weighted Average Grant-Date Fair Value Per Unit | |
Non-vested, beginning of period (USD per share) | $ / shares | $ 3.65 |
Vested (USD per share) | $ / shares | 4.76 |
Forfeited (USD per share) | $ / shares | 0 |
Non-vested, end of period (USD per share) | $ / shares | $ 2.75 |
Aggregate intrinsic value, end of period | $ | $ 423 |
Time Based Restricted Units | |
Number of Units | |
Granted (in shares) | shares | 48,000 |
Weighted Average Grant-Date Fair Value Per Unit | |
Granted (USD per share) | $ / shares | $ 2.22 |
Unit Based Awards - Long Term_6
Unit Based Awards - Long Term Incentive Plans - Intrinsic and Fair Value (Details) - Restricted unit Awards - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Aggregate intrinsic value of units vested | $ 0 | $ 0 | $ 92 | $ 257 |
Fair value of units vested | $ 0 | $ 0 | $ 188 | $ 1,418 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
MMGP LLC | |
Related Party Transaction | |
General partner interest percentage | 2% |
Martin Resource Management | Martin Resource Management Corporation | Martin Midstream Partners L.P. | |
Related Party Transaction | |
Common limited partner units (in shares) | 6,114,532 |
Voting interest percentage | 15.70% |
Martin Resource Management | Martin Resource Management | MMGP Holdings, LLC | |
Related Party Transaction | |
General partner interest percentage | 100% |
Martin Resource Management | MMGP LLC | |
Related Party Transaction | |
General partner interest percentage | 2% |
Related Party Transactions - Om
Related Party Transactions - Omnibus Agreement (Details) - Omnibus Agreement - Martin Resource Management - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jan. 01, 2022 | |
Related Party Transaction | |||||
Non-compete restriction threshold | $ 5,000,000 | $ 5,000,000 | |||
Non-compete restriction ownership option opportunity threshold minimum | 5,000,000 | 5,000,000 | |||
Non-compete restriction ownership option opportunity threshold minimum with equity limitation | $ 5,000,000 | $ 5,000,000 | |||
Equity limitation on ownership restriction percentage | 20% | 20% | |||
Approved annual reimbursements for indirect expenses | $ 13,491,000 | ||||
Indirect expenses reimbursed | $ 3,373,000 | $ 3,597,000 | $ 10,118,000 | $ 10,790,000 |
Related Party Transactions - Ma
Related Party Transactions - Master Transportation Services Agreement (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Master Transportation Services Agreement | Martin Resource Management | |
Related Party Transaction | |
Termination written notice, minimum (in days) | 30 days |
Related Party Transactions - _2
Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transaction | |
Automatic consecutive term renewal period (in years) | 1 year |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Te
Related Party Transactions - Terminal Services Agreements (Details) | 9 Months Ended |
Sep. 30, 2022 | |
Terminal Services Agreements | Martin Resource Management | |
Related Party Transaction | |
Termination written notice, minimum (in days) | 60 days |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - Martin Resource Management $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) bbl | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) bbl | Sep. 30, 2021 USD ($) | |
East Texas Mack Leases | ||||
Related Party Transaction | ||||
Ownership interest (percent) | 46% | 46% | ||
Operating cash flows from operating leases | $ | $ 589 | $ 283 | $ 1,352 | $ 801 |
Cross Tolling Agreement | ||||
Related Party Transaction | ||||
Production minimum per day (in bbl) | bbl | 6,500 | 6,500 | ||
Annual escalation benchmark percentage | 3% | 3% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of the Impact of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating expenses: | ||||
Operating expenses | $ 23,856 | $ 20,088 | $ 68,682 | $ 58,046 |
Related Party | ||||
Revenues: | ||||
Revenue from related parties | 23,237 | 21,498 | 71,024 | 61,457 |
Cost of products sold: | ||||
Cost of products sold | 12,818 | 9,700 | 37,946 | 26,242 |
Operating expenses: | ||||
Operating expenses | 23,856 | 20,088 | 68,682 | 58,046 |
Selling, general and administrative: | ||||
Selling, general and administrative | 7,626 | 7,659 | 23,932 | 23,624 |
Related Party | Indirect, including overhead allocation | ||||
Selling, general and administrative: | ||||
Selling, general and administrative | 3,465 | 3,660 | 10,413 | 11,011 |
Related Party | Terminalling and storage | ||||
Revenues: | ||||
Revenue from related parties | 16,065 | 15,866 | 49,685 | 46,741 |
Operating expenses: | ||||
Operating expenses | 4,805 | 4,284 | 13,835 | 12,513 |
Selling, general and administrative: | ||||
Selling, general and administrative | 855 | 878 | 2,880 | 2,530 |
Related Party | Transportation | ||||
Revenues: | ||||
Revenue from related parties | 7,111 | 5,564 | 20,862 | 14,463 |
Operating expenses: | ||||
Operating expenses | 17,220 | 13,949 | 48,954 | 40,652 |
Selling, general and administrative: | ||||
Selling, general and administrative | 1,766 | 1,732 | 5,569 | 5,103 |
Related Party | Natural gas liquids | ||||
Operating expenses: | ||||
Operating expenses | 537 | 534 | 1,565 | 1,511 |
Selling, general and administrative: | ||||
Selling, general and administrative | 597 | 576 | 2,132 | 2,660 |
Related Party | Product sales | ||||
Revenues: | ||||
Revenue from related parties | 61 | 68 | 477 | 253 |
Related Party | Natural gas services | ||||
Revenues: | ||||
Revenue from related parties | (3) | 0 | 0 | 0 |
Related Party | Sulfur services | ||||
Revenues: | ||||
Revenue from related parties | 17 | 28 | 86 | 87 |
Cost of products sold: | ||||
Cost of products sold | 2,616 | 2,441 | 7,884 | 7,379 |
Operating expenses: | ||||
Operating expenses | 1,294 | 1,321 | 4,328 | 3,370 |
Selling, general and administrative: | ||||
Selling, general and administrative | 943 | 813 | 2,938 | 2,320 |
Related Party | Terminalling and storage | ||||
Revenues: | ||||
Revenue from related parties | 47 | 40 | 391 | 166 |
Cost of products sold: | ||||
Cost of products sold | $ 10,202 | $ 7,259 | $ 30,062 | $ 18,863 |
Business Segments - Narratives
Business Segments - Narratives (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Business Segments - Income Stat
Business Segments - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information | ||||
Total revenue | $ 229,305 | $ 211,258 | $ 775,502 | $ 596,525 |
Depreciation and Amortization | 13,721 | 13,945 | 43,007 | 42,862 |
Operating Income (Loss) after Eliminations | (12,244) | 8,153 | 34,695 | 31,472 |
Capital Expenditures and Plant Turnaround Costs | 9,582 | 4,297 | 24,292 | 14,409 |
Terminalling and storage | ||||
Segment Reporting Information | ||||
Total revenue | 60,553 | 49,578 | 169,989 | 131,666 |
Depreciation and Amortization | 6,747 | 7,049 | 22,084 | 21,150 |
Operating Income (Loss) after Eliminations | 4,735 | 3,269 | 11,670 | 8,153 |
Capital Expenditures and Plant Turnaround Costs | 5,633 | 2,087 | 12,078 | 6,258 |
Transportation segment | ||||
Segment Reporting Information | ||||
Total revenue | 58,993 | 39,079 | 161,535 | 103,820 |
Depreciation and Amortization | 3,598 | 3,710 | 10,761 | 12,039 |
Operating Income (Loss) after Eliminations | 7,527 | 430 | 15,470 | (7,782) |
Capital Expenditures and Plant Turnaround Costs | 1,682 | 1,086 | 6,196 | 2,702 |
Sulfur services | ||||
Segment Reporting Information | ||||
Total revenue | 28,868 | 30,837 | 144,944 | 103,958 |
Depreciation and Amortization | 2,786 | 2,594 | 8,377 | 7,882 |
Operating Income (Loss) after Eliminations | (3,943) | 4,534 | 22,894 | 21,136 |
Capital Expenditures and Plant Turnaround Costs | 2,204 | 1,104 | 5,298 | 4,968 |
Natural gas liquids | ||||
Segment Reporting Information | ||||
Total revenue | 80,891 | 91,764 | 299,034 | 257,081 |
Depreciation and Amortization | 590 | 592 | 1,785 | 1,791 |
Operating Income (Loss) after Eliminations | (16,303) | 3,994 | (2,567) | 21,738 |
Capital Expenditures and Plant Turnaround Costs | 63 | 20 | 720 | 481 |
Operating Revenues | ||||
Segment Reporting Information | ||||
Total revenue | 235,422 | 216,395 | 795,236 | 612,509 |
Operating Revenues | Terminalling and storage | ||||
Segment Reporting Information | ||||
Total revenue | 62,149 | 51,226 | 174,942 | 136,584 |
Operating Revenues | Transportation segment | ||||
Segment Reporting Information | ||||
Total revenue | 63,514 | 42,568 | 176,313 | 114,886 |
Operating Revenues | Sulfur services | ||||
Segment Reporting Information | ||||
Total revenue | 28,868 | 30,837 | 144,944 | 103,958 |
Operating Revenues | Natural gas liquids | ||||
Segment Reporting Information | ||||
Total revenue | 80,891 | 91,764 | 299,037 | 257,081 |
Intersegment Revenues Eliminations | ||||
Segment Reporting Information | ||||
Total revenue | (6,117) | (5,137) | (19,734) | (15,984) |
Intersegment Revenues Eliminations | Terminalling and storage | ||||
Segment Reporting Information | ||||
Total revenue | (1,596) | (1,648) | (4,953) | (4,918) |
Intersegment Revenues Eliminations | Transportation segment | ||||
Segment Reporting Information | ||||
Total revenue | (4,521) | (3,489) | (14,778) | (11,066) |
Intersegment Revenues Eliminations | Sulfur services | ||||
Segment Reporting Information | ||||
Total revenue | 0 | 0 | 0 | 0 |
Intersegment Revenues Eliminations | Natural gas liquids | ||||
Segment Reporting Information | ||||
Total revenue | 0 | 0 | (3) | 0 |
Indirect selling, general and administrative | ||||
Segment Reporting Information | ||||
Depreciation and Amortization | 0 | 0 | 0 | 0 |
Operating Income (Loss) after Eliminations | (4,260) | (4,074) | (12,772) | (11,773) |
Capital Expenditures and Plant Turnaround Costs | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments - Balance She
Business Segments - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Total assets: | ||
Total assets | $ 627,985 | $ 579,861 |
Terminalling and storage | ||
Total assets: | ||
Total assets | 242,163 | 248,194 |
Transportation segment | ||
Total assets: | ||
Total assets | 151,932 | 145,177 |
Sulfur services | ||
Total assets: | ||
Total assets | 110,471 | 108,007 |
Natural gas liquids | ||
Total assets: | ||
Total assets | $ 123,419 | $ 78,483 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Recurring | Level 2 | Commodity Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Commodity derivative contracts, net | $ 0 | $ 0 |
Nonrecurring | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes payable | 342,566 | 341,984 |
Nonrecurring | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes payable | 341,321 | 362,366 |
Nonrecurring | 2024 Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes payable | 52,176 | 51,317 |
Nonrecurring | 2024 Notes | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes payable | 53,840 | 55,220 |
Nonrecurring | 2025 Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes payable | 290,390 | 290,667 |
Nonrecurring | 2025 Notes | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Notes payable | $ 287,481 | $ 307,146 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 1,891 | $ 954 | $ 5,469 | $ 2,111 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Contingency | |||||
Income tax expense | $ 1,891 | $ 954 | $ 5,469 | $ 2,111 | |
Deferred income tax expense | 3,611 | 1,419 | |||
TEXAS | |||||
Income Tax Contingency | |||||
State income taxes | 120 | 59 | 376 | 240 | |
MTI | |||||
Income Tax Contingency | |||||
Income tax expense | $ 1,771 | $ 895 | $ 5,093 | $ 1,871 | |
Effective income tax rate (percentage) | 19.94% | 23.42% | 21.09% | 29.51% | |
Current federal income tax expense | $ 348 | $ 153 | $ 1,071 | $ 276 | |
State income tax expense | 116 | 81 | 411 | 177 | |
Deferred income tax expense | 1,307 | $ 661 | 3,611 | $ 1,419 | |
Deferred tax asset | $ 16,210 | $ 16,210 | $ 19,821 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Thousands | Oct. 19, 2022 | Oct. 07, 2022 |
Subsequent Event | ||
Dividends declared (USD per share) | $ 0.005 | |
Estimated annualized dividends (USD per share) | $ 0.020 | |
Stockton Sulfur Terminal | ||
Subsequent Event | ||
Net proceeds from sale of partnership | $ 5,250 |