Martin Midstream Partners Reports Second Quarter 2025 Financial Results and Declares Quarterly Cash Distribution

Business Wire

16-07-2025

KILGORE, Texas--(BUSINESS WIRE)--Martin Midstream Partners L.P. (Nasdaq: MMLP) ('MMLP' or the 'Partnership') today announced its financial results for the second quarter of 2025.
Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, 'The Partnership reported adjusted EBITDA of $27.1 million for the quarter. Based on performance over the first half of the year, we are reaffirming our full year adjusted EBITDA guidance of $109.1 million. However, we remain cautious and continue to closely monitor the potential impacts of the proposed tariffs.
'For the quarter, our Sulfur Services segment delivered sales volumes and margins that exceeded our internal projections. This performance positioned the segment for a successful first half of the year as the Sulfur Services segment prepares to enter turnaround season during the third quarter.
'In the Transportation segment, utilization in the marine business was slightly below expectations due to equipment repairs, which reduced cash flow for the quarter. Results from land transportation partially offset the shortfall from marine operations. Land transportation rates continued to show signs of pressure compared to internal projections, but lower-than-expected operating expenses contributed to improved cash flow.
'Our Specialty Products segment faced temporary volume reductions this quarter in the grease business unit due to shifts in our customer portfolio, which we expect to normalize soon. At the same time, results from the lubricants business exceeded expectations and helped partially offset the underperformance in the grease business unit.
'Lastly, the Terminalling and Storage segment delivered results slightly below our internal projections for the quarter due to higher operating expenses. However, the segment remains fundamentally stable, and we anticipate favorable performance over the second half of the year.
'During the quarter, growth capital expenditures totaled $0.8 million and maintenance capital expenditures were $5.2 million. As of June 30, 2025, our adjusted leverage ratio was 4.20 times compared to 4.21 times as of March 31, 2025. We anticipate that leverage will remain at this level in the third quarter, which is typically our seasonally weakest period for cash flow. During this time, the Partnership is managing planned turnarounds, funding capital projects, and making the semi-annual interest payment on our outstanding notes, all of which contribute to higher debt levels. We expect leverage to decline in the fourth quarter as the Sulfur Services segment exits turnaround season and operational cash flows improve.'
Transportation Adjusted EBITDA decreased by $2.7 million. In the land division, Adjusted EBITDA declined by $2.8 million, primarily due to lower miles and reduced transportation rates, partially offset by lower operating expenses. In the marine division, Adjusted EBITDA increased by $0.1 million, driven by higher day rates, partially offset by increased employee-related expenses.
Terminalling and Storage Adjusted EBITDA increased by $0.4 million. At our Smackover refinery, Adjusted EBITDA increased by $0.9 million, benefiting from higher throughput and reservation fees, combined with lower operating expenses. In the underground NGL storage division, Adjusted EBITDA decreased by $0.5 million due to lower throughput volumes. Adjusted EBITDA in our specialty terminals division remained flat at $2.9 million. Adjusted EBITDA in our shore-based terminals division held steady at $1.5 million.
Sulfur Services Adjusted EBITDA decreased by $0.9 million. In the fertilizer division, Adjusted EBITDA declined by $0.7 million due to margin compression from higher raw material costs, partially offset by reservation fees related to the DSM Semichem joint venture. In the pure sulfur business, Adjusted EBITDA decreased by $0.6 million due to a reduction in operating expenses in the second quarter of 2024 from our sulfur vessel going into the shipyard for regulatory maintenance, combined with increased repairs and maintenance expenses. In the sulfur prilling business, Adjusted EBITDA decreased by $0.2 million, reflecting a volume-driven reduction in operating fees.
Specialty Products Adjusted EBITDA decreased by $1.3 million. In the grease division, Adjusted EBITDA decreased by $1.5 million, primarily due to lower margins associated with a higher mix of lower-margin product sales. The lubricants division increased by $0.1 million, reflecting higher volumes partially offset by lower margins. Adjusted EBITDA in our propane and NGL divisions each remained flat at $0.3 million, reflecting stable volumes and margins.
Unallocated selling, general, and administrative expense increased by $0.1 million, due to an increase in allocated overhead expenses from Martin Resource Management Corporation.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in millions)
Transportation
Terminalling & Storage
Sulfur Services
Specialty Products
SG&A
Interest Expense
2Q 2025
Actual
Net income (loss)
$
6.2
$
3
$
6
$
3.6
$
(6.6
)
$
(14.6
)
$
(2.4
)
Interest expense add back
–
–
–
–
–
$
14.6
$
14.6
Equity in loss of DSM Semichem LLC
–
–
–
–
$
0.6
–
$
0.6
Income tax expense
–
–
–
–
$
2.1
–
$
2.1
Operating Income (loss)
$
6.2
$
3.0
$
6.0
$
3.6
$
(3.9
)
$
–
$
14.9
Depreciation and amortization
$
2.9
$
5.4
$
3.6
$
0.8
–
–
$
12.6
Gain on sale or disposition of property, plant, and equipment
$
(0.6
)
–
–
–
–
–
$
(0.6
)
Non-cash contractual revenue deferral adjustment
–
–
$
0.2
–
–
–
$
0.2
Unit-based compensation
–
–
–
–
–
–
–
Adjusted EBITDA
$
8.5
$
8.4
$
9.7
$
4.4
$
(3.9
)
$
–
$
27.1
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NON-GAAP FINANCIAL MEASURES
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below tables entitled "Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA' and 'Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow' in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.
An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership's Adjusted EBITDA for the second quarter 2025 to the Partnership's Adjusted EBITDA for the second quarter 2024.
CAPITALIZATION
1 The Partnership was in compliance with all debt covenants as of June 30, 2025 and December 31, 2024.
2 Effective March 31, 2025, in accordance with the terms of the Partnership's credit agreement, the maximum total leverage ratio under the credit facility stepped down from 4.75x to 4.50x.
3 As calculated under the Partnership's revolving credit facility.
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QUARTERLY CASH DISTRIBUTION
The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended June 30, 2025. The distribution is payable on August 14, 2025, to common unitholders of record as of the close of business on August 7, 2025. The ex-dividend date for the cash distribution is August 7, 2025.
Qualified Notice to Nominees
This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent (100%) of MMLP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MMLP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Martin Midstream Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.
About Martin Midstream Partners
Martin Midstream Partners L.P., headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP's primary business lines include: (1) terminalling, processing, and storage services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn, Facebook, and X.
Forward-Looking Statements
Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, (ii) uncertainties relating to the Partnership's future cash flows and operations, (iii) the Partnership's ability to pay future distributions, (iv) future market conditions, (v) current and future governmental regulation, (vi) future taxation, and (vii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the 'SEC'). The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.
Use of Non-GAAP Financial Information
To assist management in assessing our business, we use the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), Adjusted EBITDA (as defined below), distributable cash flow available to common unitholders ('Distributable Cash Flow'), and free cash flow after growth capital expenditures and principal payments under finance lease obligations ("Adjusted Free Cash Flow"). Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with U.S. GAAP to analyze our performance.
Certain items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.
EBITDA and Adjusted EBITDA. We define Adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments, and transaction costs associated with business combination, merger, and divestiture activities. Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others, to assess:
the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis;
the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; and
our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.
The GAAP measures most directly comparable to Adjusted EBITDA are Net Income (Loss) and Net Cash Provided by (Used In) Operating Activities. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, Net Income (Loss), Operating Income (Loss), Net Cash Provided by (Used in) Operating Activities, or any other measure of financial performance presented in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because other companies may not calculate Adjusted EBITDA in the same manner.
Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we have capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider Net Income (Loss) and Net cash Provided by (Used in) Operating Activities as determined under GAAP, as well as Adjusted EBITDA, to evaluate our overall performance.
Distributable Cash Flow. We define Distributable Cash Flow as Net Cash Provided by (Used in) Operating Activities less cash received (plus cash paid) for closed commodity derivative positions included in Accumulated Other Comprehensive Income (Loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable Cash Flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions we expect to pay unitholders. Distributable Cash Flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Distributable Cash Flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.
Adjusted Free Cash Flow. We define Adjusted Free Cash Flow as Distributable Cash Flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted Free Cash Flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that Adjusted Free Cash Flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of Adjusted Free Cash Flow may or may not be comparable to similarly titled measures used by other entities.
The GAAP measure most directly comparable to Distributable Cash Flow and Adjusted Free Cash Flow is Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow should not be considered alternatives to, or more meaningful than, Net Income (Loss), Operating Income (Loss), Net Cash Provided by (Used in) Operating Activities, or any other measure of liquidity presented in accordance with GAAP. Distributable Cash Flow and Adjusted Free Cash Flow have important limitations because they exclude some items that affect Net Income (Loss), Operating Income (Loss), and Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, we believe that it is important to consider Net Cash Provided by (Used in) Operating Activities determined under GAAP, as well as Distributable Cash Flow and Adjusted Free Cash Flow, to evaluate our overall liquidity.
MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Revenues:
Terminalling and storage *
$
22,404
$
22,375
$
43,953
$
44,892
Transportation *
53,826
57,676
106,811
115,983
Sulfur services
4,073
3,477
8,296
6,954
Product sales: *
Specialty products
60,318
67,288
129,623
133,613
Sulfur services
40,055
33,715
84,536
63,919
100,373
101,003
214,159
197,532
Total revenues
180,676
184,531
373,219
365,361
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Specialty products *
52,270
57,553
112,764
114,783
Sulfur services *
26,234
19,234
55,316
39,633
Terminalling and storage *
—
24
—
42
78,504
76,811
168,080
154,458
Expenses:
Operating expenses *
64,382
65,358
128,836
129,292
Selling, general and administrative *
10,882
10,701
22,656
19,614
Depreciation and amortization
12,638
12,687
25,454
25,336
Total costs and expenses
166,406
165,557
345,026
328,700
Gain on disposition or sale of property, plant and equipment
613
953
1,092
1,161
Operating income
14,883
19,927
29,285
37,822
Other income (expense):
Interest expense, net
(14,608
)
(14,377
)
(28,715
)
(28,219
)
Equity in loss of DSM Semichem LLC
(616
)
—
(825
)
—
Other, net
18
2
16
18
Total other expense
(15,206
)
(14,375
)
(29,524
)
(28,201
)
Net income before taxes
(323
)
5,552
(239
)
9,621
Income tax expense
(2,084
)
(1,772
)
(3,201
)
(2,568
)
Net income (loss)
(2,407
)
3,780
(3,440
)
7,053
Less general partner's interest in net income (loss)
(48
)
76
(69
)
141
Less income (loss) allocable to unvested restricted units
(10
)
16
(14
)
28
Limited partners' interest in net income (loss)
$
(2,349
)
$
3,688
$
(3,357
)
$
6,884
Net income (loss) per unit attributable to limited partners - basic
$
(0.06
)
$
0.09
$
(0.09
)
$
0.18
Net income (loss) per unit attributable to limited partners - diluted
$
(0.06
)
$
0.09
$
(0.09
)
$
0.18
Weighted average limited partner units - basic
38,892,347
38,832,222
38,887,692
38,833,039
Weighted average limited partner units - diluted
38,892,347
38,891,375
38,887,692
38,872,192
*Related Party Transactions Shown Below
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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)
(Unaudited)
(Dollars in thousands)
Partners' Capital (Deficit)
Common Limited
General Partner Amount
Units
Amount
Total
Balances - March 31, 2025
39,055,086
$
(73,041
)
$
1,413
$
(71,628
)
Net loss
—
(2,359
)
(48
)
(2,407
)
Cash distributions
—
(195
)
(4
)
(199
)
Unit-based compensation
—
47
—
47
Balances - June 30, 2025
39,055,086
(75,548
)
1,361
(74,187
)
Balances - December 31, 2024
39,001,086
$
(71,877
)
$
1,438
$
(70,439
)
Net loss
—
(3,371
)
(69
)
(3,440
)
Issuance of restricted units
54,000
—
—
—
Cash distributions
—
(390
)
(8
)
(398
)
Unit-based compensation
—
90
—
90
Balances - June 30, 2025
39,055,086
$
(75,548
)
$
1,361
$
(74,187
)
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Partners' Capital (Deficit)
Common Limited
General Partner Amount
Units
Amount
Total
Balances - March 31, 2024
39,001,086
$
(63,115
)
$
1,619
$
(61,496
)
Net loss
—
3,704
76
3,780
Issuance of restricted units
—
—
—
—
Cash distributions
—
(195
)
(4
)
(199
)
Unit-based compensation
—
49
—
49
Balances - June 30, 2024
39,001,086
(59,557
)
1,691
(57,866
)
Balances - December 31, 2023
38,914,806
$
(66,182
)
$
1,558
$
(64,624
)
Net income
—
6,912
141
7,053
Issuance of restricted units
86,280
—
—
—
General partner contribution
—
—
—
—
Cash distributions
—
(390
)
(8
)
(398
)
Unit-based compensation
—
103
—
103
Balances - June 30, 2024
39,001,086
$
(59,557
)
$
1,691
$
(57,866
)
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MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
Six Months Ended
June 30,
2025
2024
Cash flows from operating activities:
Net income (loss)
$
(3,440
)
$
7,053
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
25,454
25,336
Amortization of deferred debt issuance costs
1,556
1,539
Amortization of debt discount
1,200
1,200
Deferred income tax expense
(154
)
26
Gain on disposition or sale of property, plant and equipment, net
(1,092
)
(1,161
)
Equity in loss of DSM Semichem LLC
825
—
Non cash unit-based compensation
90
103
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables
(3,933
)
2,383
Inventories
5,583
2,031
Due from affiliates
4,891
(14,227
)
Other current assets
(544
)
174
Trade and other accounts payable
(6,181
)
523
Product exchange payables
145
(426
)
Due to affiliates
(1,226
)
(3,065
)
Income taxes payable
849
722
Other accrued liabilities
(611
)
(1,196
)
Change in other non-current assets and liabilities
1,484
922
Net cash provided by operating activities
24,896
21,937
Cash flows from investing activities:
Payments for property, plant and equipment
(11,222
)
(24,194
)
Payments for plant turnaround costs
(1,799
)
(6,705
)
Investment in DSM Semichem LLC
—
(6,938
)
Proceeds from sale of property, plant and equipment
1,092
738
Net cash used in investing activities
(11,929
)
(37,099
)
Cash flows from financing activities:
Payments of long-term debt
(121,500
)
(113,000
)
Payments under finance lease obligations
(7
)
(1
)
Proceeds from long-term debt
109,000
128,577
Payment of debt issuance costs
(70
)
(15
)
Cash distributions paid
(398
)
(398
)
Net cash provided by (used in) financing activities
(12,975
)
15,163
Net increase (decrease) in cash
(8
)
1
Cash at beginning of period
55
54
Cash at end of period
$
47
$
55
Non-cash additions to property, plant and equipment
$
1,263
$
2,641
Non-cash contribution of land to DSM Semichem LLC
$
—
$
1,000
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MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Unaudited)
(Dollars and volumes in thousands, except BBL per day)
Transportation Segment
Comparative Results of Operations for the Three Months Ended June 30, 2025 and 2024
Three Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands)
Revenues
$
57,701
$
61,467
$
(3,766
)
(6
)%
Operating expenses
46,399
47,783
(1,384
)
(3
)%
Selling, general and administrative expenses
2,769
2,527
242
10
%
Depreciation and amortization
2,916
3,381
(465
)
(14
)%
5,617
7,776
(2,159
)
(28
)%
Gain on disposition or sale of property, plant and equipment
600
260
340
131
%
Operating income
$
6,217
$
8,036
$
(1,819
)
(23
)%
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Comparative Results of Operations for the Six Months Ended June 30, 2025 and 2024
Six Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands)
Revenues
$
115,176
$
123,509
$
(8,333
)
(7
)%
Operating expenses
93,046
94,424
(1,378
)
(1
)%
Selling, general and administrative expenses
5,637
4,727
910
19
%
Depreciation and amortization
5,848
6,857
(1,009
)
(15
)%
$
10,645
$
17,501
$
(6,856
)
(39
)%
Gain on disposition or sale of property, plant and equipment
1,078
366
712
195
%
Operating income
$
11,723
$
17,867
$
(6,144
)
(34
)%
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Terminalling and Storage Segment
Comparative Results of Operations for the Three Months Ended June 30, 2025 and 2024
Three Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands, except BBL per day)
Revenues
$
24,228
$
24,402
$
(174
)
(1
)%
Cost of products sold
—
24
(24
)
(100
)%
Operating expenses
15,079
15,522
(443
)
(3
)%
Selling, general and administrative expenses
746
820
(74
)
(9
)%
Depreciation and amortization
5,411
5,729
(318
)
(6
)%
2,992
2,307
685
30
%
Gain on disposition or sale of property, plant and equipment
8
995
(987
)
(99
)%
Operating income
$
3,000
$
3,302
$
(302
)
(9
)%
Shore-based throughput volumes (gallons)
47,199
42,491
4,708
11
%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)
6,500
6,500
—
—
%
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Comparative Results of Operations for the Six Months Ended June 30, 2025 and 2024
Six Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands, except BBL per day)
Revenues
$
47,642
$
48,687
$
(1,045
)
(2
)%
Cost of products sold
—
42
(42
)
(100
)%
Operating expenses
29,892
30,557
(665
)
(2
)%
Selling, general and administrative expenses
1,669
1,102
567
51
%
Depreciation and amortization
10,980
11,124
(144
)
(1
)%
5,101
5,862
(761
)
(13
)%
Gain on disposition or sale of property, plant and equipment
9
1,097
(1,088
)
(99
)%
Operating income
$
5,110
$
6,959
$
(1,849
)
(27
)%
Shore-based throughput volumes (gallons)
85,690
88,260
(2,570
)
(3
)%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)
6,500
6,500
—
—
%
Expand
Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended June 30, 2025 and 2024
Three Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands)
Revenues:
Services
$
4,073
$
3,477
$
596
17
%
Products
40,055
33,716
6,339
19
%
Total revenues
44,128
37,193
6,935
19
%
Cost of products sold
29,311
22,183
7,128
32
%
Operating expenses
3,655
2,744
911
33
%
Selling, general and administrative expenses
1,638
1,717
(79
)
(5
)%
Depreciation and amortization
3,556
2,778
778
28
%
5,968
7,771
(1,803
)
(23
)%
Gain (loss) on disposition or sale of property, plant and equipment
1
(308
)
309
100
%
Operating income
$
5,969
$
7,463
$
(1,494
)
(20
)%
Sulfur (long tons)
144
91
53
58
%
Fertilizer (long tons)
73
64
9
14
%
Total sulfur services volumes (long tons)
217
155
62
40
%
Expand
Comparative Results of Operations for the Six Months Ended June 30, 2025 and 2024
Six Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands)
Revenues:
Services
$
8,296
$
6,954
$
1,342
19
%
Products
84,536
63,920
20,616
32
%
Total revenues
92,832
70,874
21,958
31
%
Cost of products sold
61,313
44,954
16,359
36
%
Operating expenses
7,487
5,684
1,803
32
%
Selling, general and administrative expenses
3,235
3,020
215
7
%
Depreciation and amortization
7,113
5,760
1,353
23
%
13,684
11,456
2,228
19
%
Gain (loss) on disposition or sale of property, plant and equipment
1
(308
)
309
100
%
Operating income
$
13,685
$
11,148
$
2,537
23
%
Sulfur (long tons)
277
182
95
52
%
Fertilizer (long tons)
170
136
34
25
%
Total sulfur services volumes (long tons)
447
318
129
41
%
Expand
Specialty Products Segment
Comparative Results of Operations for the Three Months Ended June 30, 2025 and 2024
Three Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands)
Products revenues
$
60,341
$
67,317
$
(6,976
)
(10
)%
Cost of products sold
54,166
59,711
(5,545
)
(9
)%
Operating expenses
(31
)
26
(57
)
(219
)%
Selling, general and administrative expenses
1,821
1,842
(21
)
(1
)%
Depreciation and amortization
755
799
(44
)
(6
)%
3,630
4,939
(1,309
)
(27
)%
Gain on disposition or sale of property, plant and equipment
4
6
(2
)
(33
)%
Operating income
$
3,634
$
4,945
$
(1,311
)
(27
)%
NGL sales volumes (Bbls)
572
540
32
6
%
Other specialty products volumes (Bbls)
89
93
(4
)
(4
)%
Total specialty products volumes (Bbls)
661
633
28
4
%
Expand
Comparative Results of Operations for the Six Months Ended June 30, 2025 and 2024
Six Months Ended June 30,
Variance
Percent Change
2025
2024
(In thousands)
Products revenues
$
129,669
$
133,663
$
(3,994
)
(3
)%
Cost of products sold
117,211
119,355
(2,144
)
(2
)%
Operating expenses
—
51
(51
)
(100
)%
Selling, general and administrative expenses
3,570
3,165
405
13
%
Depreciation and amortization
1,513
1,595
(82
)
(5
)%
7,375
9,497
(2,122
)
(22
)%
Gain on disposition or sale of property, plant and equipment
4
6
(2
)
(33
)%
Operating income
$
7,379
$
9,503
$
(2,124
)
(22
)%
NGL sales volumes (Bbls)
1,236
1,162
74
6
%
Other specialty products volumes (Bbls)
170
172
(2
)
(1
)%
Total specialty products volumes (Bbls)
1,406
1,334
72
5
%
Expand
Indirect Selling, General and Administrative Expenses
Comparative Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024
Three Months Ended June 30,
Variance
Percent Change
Six Months Ended June 30,
Variance
Percent Change
(In thousands)
(In thousands)
Indirect selling, general and administrative expenses
$
3,937
$
3,819
$
118
3
%
$
8,612
$
7,655
$
957
13
%
Expand
Non-GAAP Financial Measures
The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2025 and 2024, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Net income (loss)
$
(2,407
)
$
3,780
$
(3,440
)
$
7,053
Adjustments:
Interest expense
14,608
14,377
28,715
28,219
Income tax expense
2,084
1,772
3,201
2,568
Depreciation and amortization
12,638
12,687
25,454
25,336
EBITDA
26,923
32,616
53,930
63,176
Adjustments:
Gain on disposition or sale of property, plant and equipment
(613
)
(953
)
(1,092
)
(1,161
)
Transaction expenses related to the terminated Merger with Martin Resource Management Corporation
—
—
827
—
Equity in (earnings) loss of DSM Semichem LLC
616
—
825
—
Non-cash contractual revenue adjustment
175
—
396
—
Unit-based compensation
47
49
90
103
Adjusted EBITDA
$
27,148
$
31,712
$
54,976
$
62,118
Expand
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
(in thousands)
(in thousands)
Net cash provided by operating activities
$
30,915
$
11,828
$
24,896
$
21,937
Interest expense 1
13,229
13,004
25,959
25,480
Current income tax expense
2,024
1,420
3,355
2,542
Transaction expenses related to the terminated Merger with Martin Resource Management Corporation
—
—
827
—
Non-cash contractual revenue adjustment
175
—
396
—
Changes in operating assets and liabilities which (provided) used cash:
Accounts and other receivables, inventories, and other current assets
(6,570
)
9,919
(5,997
)
9,639
Trade, accounts and other payables, and other current liabilities
(12,013
)
(3,786
)
7,024
3,442
Other
(612
)
(673
)
(1,484
)
(922
)
Adjusted EBITDA
27,148
31,712
54,976
62,118
Adjustments:
Interest expense
(14,608
)
(14,377
)
(28,715
)
(28,219
)
Income tax expense
(2,084
)
(1,772
)
(3,201
)
(2,568
)
Deferred income taxes
60
352
(154
)
26
Amortization of debt discount
600
600
1,200
1,200
Amortization of deferred debt issuance costs
779
773
1,556
1,539
Payments for plant turnaround costs
(977
)
(745
)
(1,799
)
(6,705
)
Maintenance capital expenditures
(4,246
)
(7,009
)
(8,103
)
(12,211
)
Distributable Cash Flow
6,672
9,534
15,760
15,180
Principal payments under finance lease obligations
(3
)
(1
)
(7
)
(1
)
Investment in DSM Semichem LLC
—
(6,938
)
—
(6,938
)
Expansion capital expenditures
(792
)
(5,450
)
(1,721
)
(11,681
)
Adjusted Free Cash Flow
$
5,877
$
(2,855
)
$
14,032
$
(3,440
)
Expand
1 Net of amortization of debt issuance costs and discount, which are included in interest expense but not included in net cash provided by (used in) operating activities.
Expand