Martin Midstream Partners LP (MMLP), Kilgore, Texas, on Oct. 10 announced the sale of its sulfur terminal in Stockton, Calif., to Gulf Terminals LLC, a privately held company offering sulfur handling and forming solutions to refineries and consumers. MMLP said the net proceeds of $5.25 million will be used to reduce outstanding borrowings under its revolving credit facility.
“Over the last several years, the partnership has sought opportunities to strengthen our balance sheet and reduce outstanding debt to lower our leverage,” said Bob Bondurant, MMLP President and CEO. “As a result, we have successfully completed multiple non-core asset sales, allowing us to focus on our refinery services business segments. And while the sulfur business remains a strategic piece of our operations, the Stockton Terminal was considered a non-core asset as it is geographically removed from our focus on the U.S. Gulf Coast area where our primary sulfur assets are located.”
MMLP’s main operations include terminal, processing, storage, and packaging services for petroleum products and byproducts; land and marine transportation for petroleum, chemical, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing, and distribution; and natural gas liquids marketing, distribution, and transportation services.
MMLP in July reported second-quarter net income of $6.6 million ($0.17 per diluted unit) on revenues of $267 million, up from a year-ago loss of $6.6 million ($0.17 per unit) and $184.3 million, respectively (GM July 22, p. 28). Adjusted EBITDA was $38.3 million, up from the year-ago $22.5 million.
At the end of June, MMLP had $494 million of total debt outstanding, including $149 million drawn on its $275 million revolving credit facility, $54 million of senior secured 1.5 lien notes due 2024, and $291 million of senior secured second lien notes due 2025. As a result, the company had liquidity of approximately $87 million from available capacity under its revolving credit facility.
MMLP’s adjusted leverage ratio, as calculated under the revolving credit facility, was 3.46 times on June 30 and 3.87 times on March 31, the company reported in July.