Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Audra and I will be your conference operator today. At this time I would like to welcome everyone to the MMLP's First Quarter Earnings Call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers’ the will question-and-answer be After [Operator Instructions]

I At Financial turn ahead. would the time, Officer. conference go Chief to Taylor, like this Sharon over Please to

Sharon Taylor

are morning Cannon, David and Danny FP&A. With good Tauscher, of Controller; and Director operator CEO; Randy you, me Thank today Bob Cavin, Bondurant, COO; everyone.

statements. our I'll begin cautionary with

and to During this the making release well results press actual a beliefs as latest These Please filings of could are statements issued be factors impact performance well SEC. our of our cause to for our as SEC differ our statements current Martin available looking yesterday afternoon and future call the forward from management as information with our as to refer list assumptions based us. that may by as currently upon defined the expectations.

discuss will today's as adjusted non-GAAP distributable call flow. such on financial and cash EBITDA, We free flow cash measures

will of effect adjusted we EBITDA addition, optimization to giving butane the after refer In exit the to business.

find website. You our nearest earnings on posted a to press release in their non-GAAP GAAP measures measures our will of these reconciliation

Now, by I the will Bob segments. first quarter over to to discuss turn results call

Bob Bondurant

first optimization performance would which butane which had I a exit difference Sharon. $XX.X adjusted adjusted first business line X%. to in guidance February. quarter quarter our to of guidance EBITDA the discuss first of quarter Thanks, was giving we comparison mid effect our after in million of published like $XX.X We the of EBITDA with million, to in

quarter had million exit business, effect after XX the of butane through of adjusted months of we trailing EBITDA the the XXXX. $XXX.X giving the first For optimization to

$XX.X which EBITDA land million, transportation cash guidance guidance our forecast quarter, exceeded haul our was compared $XX.X flow X%. first million. our of to business Within positive excess mile of transportation by our our by we had segment compared beat cash $X.X forecasted generator with beat adjusted which had of segment, driver primary $XX.X of For The as EBITDA revenue, flow to $X forecast that largest by adjusted million mileage our rate million. line million and per and of this X%, the

Looking forward, guidance general we half possibility our transportation guidance in in current based land which the accounted of for a the there of recession, is this our second achieving regarding still about are visibility, discussion annual our year's while business. on optimistic we

Our marine $X.X of adjusted had transportation business of million EBITDA compared guidance $X.X to million.

Our excess compared a forecasts performance for revenue day our accounting million actual to by $X.X guidance. exceeded rate flow in the cash

XX% barges only due utilization regulatory dry the during seven inspections. at achieved and times to forecasted different to dock quarter We various being due in

first inland the X% However, rate quarter barge from forecasts we day continued exceeded market by our strengthening rate. day approximately in

a improved of barge forward, along Looking strength continue will believe with utilization that fleet. we

X% first in lower second $X.X cash the segment, guidance of generator than EBITDA X% Our business, adjusted strongest Terminalling of our from less benefited than quarter were million to this forecast. revenue million. but costs Overall, less was and $X.X had by missed operating forecasted we which in Storage flow which compared

to in this in Looking annual forward segment. original more we will line we business and costs our our guidance confident believe increase forecast actual about feel operating be with

weather which our due our million, which sold. like had cash compared has to million. had We is largest provider EBITDA our $X.X of agriculture to EBITDA fertilizer was The to quarter. group, marketplace. the Now million reduced XX% significantly Services the in unfavorable $X.X adjusted miss the forecast been impacted was our of Also been as our by in demand, have guidance quantity to of underperformance million. demand Sulfur to we'd relative flow in negatively We compared in margins missed first $X.X guidance of adjusted approximately first cash for segment, of because guidance. flow of our discuss The $X.X the in our volume delayed miss cash fertilizer driver by our the primary guidance larger quarter driven third of impact flow of

are currently of However, optimistic USDA $XX to increased seeing fertilizer be can especially are in to our considering demand million forecasted April, quarter we we volume forecast, and March compared as achieve second planted. estimated acres the corn

quarter, pure compared compared had million. the rise excess posting, this quarter to side which was $XX first fourth adjusted the business of $X.X $X.X in in the sulfur segment our Sulfur EBITDA Services The per cash to benefit from of the Our on of million Tampa quarter. increased and guidance achieved when the first ton

was Now demand contributor I guidance of of lack distributors, biggest X.X was segment. In The lubricant major to down, performance million. adjusted this Products market. volume compared was the lubricants by to after packaging of guidance from the exit significant would forecasted the business driven the business million butane like giving had we effect of sales Martin business. which optimization to retail our have which Specialty of segment, Overall agriculture to exposure missing the $X.X our to EBITDA discuss

to our planning believe delayed due weather been negative of impacts, spring impacting lubricants sales We feed that that have crops market.

primarily missed warm quarter area. market group propane unusual in our segment, this wholesale to cash weather guidance first due in our Additionally, flow

our to segment, Looking to forward sales recover package Specialty we believe anticipated in improve. will business when market lubricant Product agriculture the our begin

near our also We performance business in to the grease and see term. in continue specialty demand strong

butane of barrels would which performance inventory. I approximately our to quarter In business the are Finally, butane optimization we exiting. discuss XXX,XXX first the liquidated like of we

quarter, Looking pay we liquidation. credit our inventory to revolving our toward as we complete $XX used second butane down be approximately will line believe million, of which of proceeds collect we will the

resources. to Now I to would like our call balance discuss back the turn capital Sharon sheet and to

Sharon Taylor

And Thank begin Bob. right you, I'll there.

debt business. things the capital out amended purposes other note working quarter allocation, from we further facility, due calculating carve for reach optimization important committed during first revolving X.XX butane As XXXX, to reduction It's debt exit which sub order This anticipated that our to we extended of our capital of to the leverage. the in for leverage. remain limit was credit goal of removed times to the among and

with adjusted carving arrive exclude a beginning that So to butane ratios. to we the EBITDA at quarter, out optimization sub-limit, business results the under calculate this instead of of our leverage

exclude settlement At reduction of carved March X.XX to the times. X.XX end of to sub-limit XX XXXX debt needs ratio XXXX, be XX times compare debt adjusted announced ratio at million. of March adjusted to $XX.X In X.XX order a leverage we compared leverage XXXX X.XX of fourth which XX, the $XX.X December to the quarter a to December to XX, December bringing the included carve million times out times out

$XXX XXXX, secondly $XXX on XX from $XXX million, long is million of consisted March million term in senior $XX million $XXX our note revolver outstanding million which The debt due XXXX our of end At XXXX. was a drawn that and the debt of matures of last reduction the total secured outstanding quarter. of

we ratios the In $XX All in our approximately capacity terms bank liquidity, in end million quarter. partnership with the under borrowing additional all, all of revolving compliance was at had of the credit facility.

expenditures. Next, I'll capital over go our

business were effect the $XXX,XXX calculated and these the to quarter the but $X.X and for free first $X.X optimization was for anticipated totals below quarter, expenditures in flow the flow gross our using CapEx $X.X we maintenance Both million. cash total giving CapEx. Distributable the expectation in spent During million year of EBITDA the after changed. quarter adjusted butane exit of million was cash not have for

facility Permits venture a update staff sulfuric the Quality. ELSA on project. give facility for the initiated. been been joint have the DSM semi-camp Environmental on high ELSA employees from the of has brief the recruiting hiring production electronic Texas The level or process received level I'll and construction of Finally, Commission to acid

Oleum March The our support and standalone location for of facility expected and the approximately capital XX, $XX.X the as of total Plainview on been tower production project XXX,XXX in of of of that expansion installing million is schedule has spent. ELSA at

aware of that timing impact As in construction would delays ELSA the or facility. of permitting am not today, of the startup significantly any the of I

I'll remarks. Q&A. to call the operator for turn over our concludes the That prepared

Operator

Thank you. Akyol our [Operator Selman Instructions] question We'll first take at Stifel. from

Selman Akyol

Thank morning all. you. Good

Sharon Taylor

Good morning.

Bob Bondurant

morning. Good

Selman Akyol

just you heard first recession of kind I of I transportation half. second starting nice the And terms and a in loud there. on guess numbers you off about thinking in clear and

into look be should quarter we next in of it that aware XQ turnarounds refinery we of XQ, your the As terms thinking in impacting anything all? is in at there

Randy Tauscher

Randy. Good We've very is heard morning be Selman. This heavy to going year. is turnaround a had this

like their with getting their normal statistics, are to be that refiners up turnaround. If the looks normal will we matter it a I normal we a getting they now ready the same [indiscernible] as refineries just tell you it's year. Most the a turnaround or back service with have been to through year. the observed through It's to you operations. we And refinery service of look of already utilization at

no, impact from So don't in at in we see a negative any this point time. turnarounds way

Selman Akyol

be previously he you the had as same the Florida. Understood, you of to wondering that go and at you rest then see I level? that was picked do that or going. up And in the how And some also was curtailing contracts expect you year through

Randy Tauscher

have of their ways a over ongoing we they customer a for market. you're generally the in utilize at very assume up their terminals in opened specifically And about of think time Tampa got strong the years, that lot a has a we production the the have have spring large We recent that of ones that couple irregardless I over Florida of speaking can site. in trucks is obviously the there And them. very

be And strong use have us extensively months, we also. to very So to the through spring. they that proven summer expect quite the in

So continue well. do believe been we to well. it's that going going to And has

Selman Akyol

through don't be given of conservative then I as think budget transportation I then potentially year? your should optimistic and rest too we Understood to the is here roll of being the want but somewhat

Randy Tauscher

the as forward Yes, both year. the the move on we I'm of through optimistic I rest land and the marine, would.

a from Now we've looking today. working to our way we seen all, through sit comments where strong as they're it very very we we sporadic have it, heard year. as see, can we all that certainly geography up here seen a standpoint. point Bob's to if from earlier guys, expecting it's slowdown haven't in the from chemical this seen We the start there, But we've what

Bob Bondurant

I and comments And earlier Selman didn't point we that. that make this to Bob. my for that is in did it forecast And

kind factor review that QX as and of guidance So sort you QX in our we've in. of

no So a is or recession extent very there the mild recession.

think I definitely some we have upside.

Selman Akyol

of kind the looking it that's Yes, way as at well. was I

and Let over guess really two I flip Terminalling Storage. me questions just there.

based we you partner. real terminals, shore a the general had I contract, took and think On

come? has on to recontracting? an little the guess so I the kicked base on uplift I was underperformance that And there a given in? short still Is surprised the

Bob Bondurant

We year. would dollars with last with of X MLP going that anticipate we a to October about the volumes in that forecasted, budget business kicked in would quarter forward. we contract that yes, And the the million per

not performance expect You're May. forward. May achieve the see did that from volumes And to right, in in pick the that business We quarter. business do up first to expect for we our we better

Selman Akyol

underground and fixed then anywhere of Have maybe And else Understood or that? you to any at it re-contract the related for other is some been sort of that's either I there to on just butane. NGOs? update on know storage, fee and basis trying propane most looked a on

Bob Bondurant

that. isn't There on update really an

will would at would to moderate, I so. for XX and that. interest third for been not in expect a general to I next that that high or looked right look days partner slight the now contracting. have it, party has XX the the at we or We contract between And MLP we the see continue say

Selman Akyol

the just pearling Was on you And sulfur. there? then particular certainly expectations side, over about there anything it. handily Got because beat in

Bob Bondurant

better The a than them little were be. anticipated to volumes bit we

we in have going year XXXX that we the drive a just function terminals, Beaumont. bit the more the than It operating impact it over then a the the little of trailer, a We And would tons think it quarter. just business. over costs. in of day moved turnarounds some I a through a expected first in it's of to through volatility terminals but tons And did XXXX day not Last there.

Selman Akyol

Got to it. last And of the it I in. sounds sort million one, like then you another XX guess roll just expect

So looks butane. from liquidating the it

million guys laid So -- Anything think should on I looks I as like or goalpost. $XXX out of about to that is you're thinking the be hit you sort had a that track mark

Sharon Taylor

reduction for debt Yes. That's still expectations our on year Selman. the

expect somewhere that will million to the we between we on revolver year. call let's for just So XX come XX the it this in million

Selman Akyol

for That me. so Okay. much. does it Thanks

Sharon Taylor

you. Thank

Operator

to like no closing the Bob turn questions have I Bondurant time. remarks. And this further Instructions] we at [Operator conference would back for to

Bob Bondurant

like on XXXX strengthen that proud thank profile. for Selman Thank by call. to saying everyone you we pleased leverage good received. the thank have with progress was the you we’ve to and and made you sheet our I'm the questions our And I'm to Audra. our improve balance I'd to start close of of

Looking speaking the further Please we forward, quarter. deliver if you with confident financial want to next I'm to that questions or results are And guidance. to you day. have shared on us. a great with we follow have a positioned forward with I conversation again any look our Have you management. to out up reach that

Operator

participation. does for that you today's conclude conference. your And Again thank

You now disconnect. may

Martin Midstream Partners (MMLP) 20 Apr 232023 Q1 Earnings call transcript