MARTIN MIDSTREAM PARTNERS LP
For the period ended Sep 30, 2024. Filed Oct 21, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Oct 21, 2024
MMLP$2.03+3.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-07-23.
0001176334-24-000102
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-21.
0001176334-24-000134
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 156 previous paragraphs and 151 current paragraphs.
96 unchanged; 46 reworded; 7 added; 12 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 21 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
On October 3, 2024, Martin Resource Management Corporation, Merger Sub, the Partnership, and MMGP, entered into a Merger Agreement pursuant to which Merger Sub will merge with and into the Partnership, with the Partnership surviving as a wholly owned subsidiary of Martin Resource Management Corporation. See Note 18 to our unaudited condensed consolidated financial statements for additional information.
Current report
We define Credit Adjusted EBITDA as Adjusted EBITDA excluding net income (loss) and the lower of cost or net realizable value and other non-cash adjustments associated with the butane optimization business, which we exited during the second quarter of 2023. Credit 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 provide additional information regarding the calculation of, and compliance with, certain financial covenants in the Partnership’s Third Amended and Restated Credit Agreement.
Current report
Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023
Current report
Cost of products sold. Cost of products sold decreased $6.7 million. A 33% decrease in sales volumes impacted cost of products sold by $7.6 million. A 4% increase in product cost impacted cost of products sold by $1.0 million, resulting from increased commodity prices. Margin per ton increased $7.46, or 22%.
Current report
Operating expenses. Operating expenses decreased due to a reduction of $0.2 million in outside services, $0.1 million in utilities, $0.1 million in marine pass-through expenses (primarily fuel) and $0.1 million in marine operating expenses, offset by a $0.1 million increase in repairs and maintenance.
Current report
Products revenues. Products revenues decreased $13.4 million. A decrease of $15.3 million was primarily due to a 15% reduction in sales volumes resulting from a 16% decrease in sulfur volumes due to the Margaret Sue being out of service for regulatory inspections and maintenance. This was offset by an increase of $1.9 million related to a 2% increase in average sulfur products sales prices.
Current report
Cash Flows - Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Removed paragraphs (12)
Previous report
The proposed transaction is subject to several contingencies, including the approval of the Conflicts Committee and the Board of Directors, the approval by the Partnership’s unitholders, and the satisfaction of any conditions to the consummation of a transaction set forth in any definitive agreement concerning the transaction. There can be no assurance that definitive documentation will be executed or that any transaction will materialize on the terms described above or at all.
Previous report
Six Months Ended June 30, 2024 Compared to the Six Months Ended June 30, 2023
Previous report
Other operating income (loss), net. Other operating income (loss), net represents gains and losses from the disposition of property, plant and equipment.
Previous report
Cost of products sold. A 21% decrease in sales volumes impacted cost of products sold by $5.9 million. Margin per ton increased $29.35, or 65%.
Previous report
Operating expenses. Operating expenses decreased due to a reduction of $0.3 million in marine rebill expenses and $0.1 million in utilities. There were no other individually significant fluctuations between periods.
Previous report
Selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to higher employee-related expenses.
Previous report
Other operating income (loss), net. Other operating income (loss), net represents gains and losses on the disposition of property, plant and equipment.
Previous report
Products revenues. Products revenues decreased $2.8 million as a result of a 4% reduction in average sulfur products sales prices. Products revenues decreased $2.6 million due to a 4% reduction in sales volumes, primarily related to an 8% decrease in sulfur volumes.
Previous report
Selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to higher employee-related expenses.
Previous report
Other operating income (loss), net. Other operating income (loss), net represents gains and losses on the disposition of property, plant and equipment.
Previous report
Other operating income (loss), net. Other operating income (loss), net represents gains and losses from the disposition of property, plant and equipment.
Previous report
Cash Flows - Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Reworded paragraphs (46)
Previous wording
MMLP Receives Buyout Offer from Martin Resource Management. On May 24, 2024, we announced that Martin Resource Management filed an amendment to its Schedule 13D (the “13D Amendment”) with the SEC. The 13D Amendment disclosed that Martin Resource Management submitted a non-binding proposal to the Conflicts Committee, pursuant to which Martin Resource Management would acquire all of the outstanding Common Units of the Partnership not already owned by Martin Resource Management or its subsidiaries for a cash purchase price of $3.05 per Common Unit. The other terms of such proposal are set forth in the 13D Amendment.
Current wording
Merger Agreement. On May 24, 2024, Martin Resource Management Corporation filed an amendment to its Schedule 13D with the SEC disclosing that Martin Resource Management Corporation made a non-binding proposal to the Board, pursuant to which Martin Resource Management Corporation would acquire all the outstanding common units of the Partnership not already owned by Martin Resource Management Corporation and its subsidiaries.
Previous wording
Electronic Level Sulfuric Acid Joint Venture. On October 19, 2022, Martin ELSA Investment LLC, our affiliate, entered into definitive agreements with Samsung C&T America, Inc. and Dongjin USA, Inc., an affiliate of Dongjin Semichem Co., Ltd., to form DSM Semichem LLC (“DSM”). DSM will produce and distribute electronic level sulfuric acid (“ELSA”). By leveraging our existing assets located in Plainview, Texas and installing additional facilities (the “ELSA Facility”) as required, DSM will produce ELSA that meets the strict quality standards required by the recent advances in semiconductor manufacturing. In addition to owning a 10% non-controlling interest in DSM, we will be the exclusive provider of feedstock to the ELSA Facility. We, through our affiliate MTI, will also provide land transportation services for the ELSA produced by DSM. We expect to fund approximately $27.0 million in aggregate capital expenditures in connection with this joint venture. On April 1, 2024, we contributed $6.5 million to DSM, which represents the cash contribution required pursuant to DSM's limited liability agreement for our 10% non-controlling interest. As of June 30, 2024, we have funded approximately $23.9 million toward ELSA related project costs.
Current wording
Electronic Level Sulfuric Acid Joint Venture. On October 19, 2022, Martin ELSA Investment LLC, our affiliate, entered into definitive agreements with Samsung C&T America, Inc. and Dongjin USA, Inc., an affiliate of Dongjin Semichem Co., Ltd., to form DSM Semichem LLC (“DSM”). DSM will produce and distribute electronic level sulfuric acid (“ELSA”). By leveraging our existing assets located in Plainview, Texas and installing additional facilities (the “ELSA Facility”) as required, DSM will produce ELSA that meets the strict quality standards required by the recent advances in semiconductor manufacturing. In addition to owning a 10% non-controlling interest in DSM, we will be the exclusive provider of feedstock to the ELSA Facility. We, through our affiliate MTI, will also provide land transportation services for the ELSA produced by DSM. We expect to fund approximately $27.0 million in aggregate capital expenditures in connection with this joint venture. On April 1, 2024, we contributed $6.5 million to DSM, which represents the cash contribution required pursuant to DSM's limited liability agreement for our 10% non-controlling interest. As of September 30, 2024, we have funded approximately $26.4 million toward ELSA related project costs.
Previous wording
Quarterly Distribution. On July 17, 2024, we declared a quarterly cash distribution of $0.005 per common unit for the second quarter of 2024, or $0.020 per common unit on an annualized basis, which will be paid on August 14, 2024, to unitholders of record as of August 7, 2024.
Current wording
Quarterly Distribution. On October 16, 2024, we declared a quarterly cash distribution of $0.005 per common unit for the third quarter of 2024, or $0.020 per common unit on an annualized basis, which will be paid on November 14, 2024, to unitholders of record as of November 7, 2024.
Previous wording
The Omnibus Agreement requires us to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on our behalf or in connection with the operation of our business. We reimbursed Martin Resource Management Corporation for $42.9 million of direct costs and expenses for the three months ended June 30, 2024, compared to $38.6 million for the three months ended June 30, 2023. We reimbursed Martin Resource Management Corporation for $82.2 million of direct costs and expenses for the six months ended June 30, 2024, compared to $79.5 million for the six months ended June 30, 2023. There is no monetary limitation on the amount we are required to reimburse Martin Resource Management Corporation for direct expenses.
Current wording
The Omnibus Agreement requires us to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on our behalf or in connection with the operation of our business. We reimbursed Martin Resource Management Corporation for $46.2 million of direct costs and expenses for the three months ended September 30, 2024, compared to $43.2 million for the three months ended September 30, 2023. We reimbursed Martin Resource Management Corporation for $128.4 million of direct costs and expenses for the nine months ended September 30, 2024, compared to $122.7 million for the nine months ended September 30, 2023. There is no monetary limitation on the amount we are required to reimburse Martin Resource Management Corporation for direct expenses.
Previous wording
In addition to the direct expenses, under the Omnibus Agreement, we are required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. In each of the three months ended June 30, 2024 and 2023, the Conflicts Committee approved reimbursement amounts of $3.4 million and $3.5 million, respectively. In each of the six months ended June 30, 2024 and 2023, the Conflicts Committee approved reimbursement amounts of $6.8 million and $7.0 million, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses covered the centralized corporate functions Martin Resource Management Corporation provides for us, 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 we share with Martin Resource Management Corporation’s retained businesses. The Omnibus Agreement also contains significant non-compete provisions and indemnity obligations. Martin Resource Management Corporation also licenses certain of its trademarks and trade names to us under the Omnibus Agreement.
Current wording
In addition to the direct expenses, under the Omnibus Agreement, we are required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. In each of the three months ended September 30, 2024 and 2023, the Conflicts Committee approved reimbursement amounts of $3.4 million and $3.5 million, respectively. In each of the nine months ended September 30, 2024 and 2023, the Conflicts Committee approved reimbursement amounts of $10.1 million and $10.5 million, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses covered the centralized corporate functions Martin Resource Management Corporation provides for us, 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 we share with Martin Resource Management Corporation’s retained businesses. The Omnibus Agreement also contains significant non-compete provisions and indemnity obligations. Martin Resource Management Corporation also licenses certain of its trademarks and trade names to us under the Omnibus Agreement.
Previous wording
We have been and anticipate that we will continue to be both a significant customer and supplier of products and services offered by Martin Resource Management Corporation. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 28% and 24% of our total costs and expenses during the three months ended June 30, 2024 and 2023, respectively. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 27% and 21% of our total costs and expenses during the six months ended June 30, 2024 and 2023, respectively.
Current wording
We have been and anticipate that we will continue to be both a significant customer and supplier of products and services offered by Martin Resource Management Corporation. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 31% and 29% of our total costs and expenses during the three months ended September 30, 2024 and 2023, respectively. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 29% and 23% of our total costs and expenses during the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Correspondingly, Martin Resource Management Corporation is one of our significant customers. Our sales to Martin Resource Management Corporation accounted for approximately 14% and 17% of our total revenues for the three months ended June 30, 2024 and 2023, respectively. Our sales to Martin Resource Management Corporation accounted for approximately 15% and 13% of our total revenues for the six months ended June 30, 2024 and 2023, respectively.
Current wording
Correspondingly, Martin Resource Management Corporation is one of our significant customers. Our sales to Martin Resource Management Corporation accounted for approximately 15% and 15% of our total revenues for the three months ended September 30, 2024 and 2023, respectively. Our sales to Martin Resource Management Corporation accounted for approximately 15% and 13% of our total revenues for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
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), adjusted EBITDA after giving effect to the exit of the butane optimization business, 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.
Current wording
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), Credit 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.
Previous wording
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. 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:
Current wording
EBITDA, Adjusted EBITDA and Credit 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. 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:
Previous wording
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.
Current wording
The GAAP measures most directly comparable to adjusted EBITDA and Credit Adjusted EBITDA are net income (loss) and net cash provided by (used in) operating activities. Adjusted EBITDA and Credit 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 and Credit 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.
Previous wording
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, 2024 and 2023, which represents EBITDA, adjusted EBITDA, adjusted EBITDA after giving effect to the exit of the butane optimization business, distributable cash flow, and adjusted free cash flow:
Current wording
The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and nine months ended September 30, 2024 and 2023, which represents EBITDA, adjusted EBITDA, Credit Adjusted EBITDA, distributable cash flow, and adjusted free cash flow:
Previous wording
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business
Current wording
Reconciliation of Net Income (Loss) to EBITDA, Adjusted EBITDA, and Credit Adjusted EBITDA
Previous wording
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Adjusted EBITDA After Giving Effect to the Exit of the Butane Optimization Business, Distributable Cash Flow, and Adjusted Free Cash Flow
Current wording
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Credit Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow
Previous wording
The results of operations for the three and six months ended June 30, 2024 and 2023, have been derived from our consolidated and condensed financial statements.
Current wording
The results of operations for the three and nine months ended September 30, 2024 and 2023, have been derived from our consolidated and condensed financial statements.
Previous wording
We evaluate segment performance on the basis of operating income, which is derived by subtracting cost of products sold, operating expenses, selling, general and administrative expenses, and depreciation and amortization expense from revenues. The following table sets forth our operating revenues and operating income by segment for the three and six months ended June 30, 2024 and 2023. The results of operations for these interim periods are not necessarily indicative of the results of operations which might be expected for the entire year.
Current wording
We evaluate segment performance on the basis of operating income, which is derived by subtracting cost of products sold, operating expenses, selling, general and administrative expenses, and depreciation and amortization expense from revenues. The following table sets forth our operating revenues and operating income by segment for the three and nine months ended September 30, 2024 and 2023. The results of operations for these interim periods are not necessarily indicative of the results of operations which might be expected for the entire year.
Previous wording
Revenues. Revenues increased $0.5 million. Revenue at our shore-based terminals increased $0.6 million, including $0.4 million in fuel throughput and $0.2 million in space rent. In addition, revenue at our specialty terminals increased $0.5 million primarily as a result of higher throughput and storage revenue. Revenue at our Smackover refinery decreased $0.8 million primarily as a result of decreased natural gas surcharge revenue.
Current wording
Revenues. Revenues increased $0.4 million. Revenue at our shore-based terminals increased $0.6 million, including $0.5 million in fuel throughput and $0.1 million in space rent. In addition, revenue at our specialty terminals increased $0.7 million primarily as a result of higher throughput and service revenue. Revenue at our Smackover refinery decreased $0.8 million primarily as a result of decreased natural gas surcharge revenue due to a reduction in usage.
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.
Current wording
Operating expenses. Operating expenses decreased primarily due to lower natural gas utility expense of $0.9 million resulting from a reduction in usage. This decrease was offset by increases in repairs and maintenance of $0.3 million across our specialty terminals, lease expense of $0.3 million related to operating equipment at our Smackover refinery, and employee-related expenses of $0.2 million.
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses increased $0.5 million due to employee-related expenses of $0.6 million offset by a $0.1 million reduction associated with the exit of the butane optimization business in the second quarter of 2023.
Current wording
Selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to employee-related expenses.
Previous wording
Revenues. Revenues increased $0.9 million. Revenue at our shore-based terminals increased $1.6 million, including $0.9 million in fuel throughput and $0.6 million in space rent. In addition, revenue at our specialty terminals increased $0.8 million, primarily as a result of higher throughput and storage revenue. Revenue at our Smackover refinery decreased $1.6 million, primarily as a result of decreased natural gas surcharge revenue.
Current wording
Revenues. Revenues increased $1.3 million. Revenue at our shore-based terminals increased $2.1 million, including $1.4 million in fuel throughput and $0.7 million in space rent. In addition, revenue at our specialty terminals increased $1.6 million, primarily as a result of higher throughput and service revenue. Revenue at our Smackover refinery decreased $2.4 million, primarily as a result of decreased natural gas surcharge revenue of $2.6 million due to a decrease in usage, offset by a $0.2 million increase in reservation fees.
Previous wording
Operating expenses. Operating expenses increased primarily as a result of liability insurance claims of $1.6 million, property insurance expense of $0.8 million, employee-related expenses of $0.8 million, repairs and maintenance of $0.4 million and operating supplies of $0.4 million. These increases were offset by a decrease in natural gas utilities of $2.1 million.
Current wording
Operating expenses. Operating expenses increased primarily as a result of liability insurance claims of $1.6 million (crude pipeline spill), insurance premiums of $1.0 million, employee-related expenses of $1.0 million, repairs and maintenance of $0.7 million at our Smackover refinery, operating supplies of $0.6 million and lease expense of $0.2 million. These increases were offset by a decrease in natural gas utilities of $3.0 million.
Previous wording
Revenues. Revenues for our Transportation Segment increased $3.2 million. In our marine transportation division, inland revenues increased $2.7 million, primarily related to higher transportation rates, offset by a decrease in utilization associated with equipment repairs and regulatory inspections. Offshore revenues increased $0.1 million, primarily related to higher transportation rates. Additionally, there was a rise in pass-through revenue (primarily fuel) of $0.2 million. In our land transportation division, revenue increased $0.2 million, primarily due to a $3.8 million increase in freight revenue related to a 5% increase in total miles. Ancillary revenue decreased $3.6 million.
Current wording
Revenues. Revenues increased $1.7 million. In our marine transportation division, inland revenues increased $1.8 million, primarily related to higher transportation rates and utilization. Offshore revenues increased $0.3 million, primarily related to higher transportation rates. Pass-through revenue (primarily fuel) decreased $0.4 million. In our land transportation division, freight revenue increased $1.1 million, primarily due to a 3% increase in total miles. Ancillary revenue decreased $1.1 million.
Previous wording
Operating expenses. The increase in operating expenses is primarily a result of lease expense of $1.2 million, employee-related expenses of $1.1 million, insurance premiums of $1.1 million and pass-through expenses (primarily fuel) of $0.6 million, offset by repairs and maintenance of $0.9 million.
Current wording
Operating expenses. The decrease in operating expenses is primarily a result of repairs and maintenance of $1.5 million and pass-through expenses (primarily fuel) of $1.4 million, offset by increases in lease expense of $0.9 million and insurance premiums of $0.7 million. The decrease in repairs and maintenance, as well as the increase in lease expense are related to the replacement of tractors and trailers in our land transportation division.
Previous wording
Revenues. Revenues for our Transportation Segment increased $3.1 million. In our marine transportation division, inland revenues increased $0.4 million, primarily related to higher transportation rates, offset by a decrease in utilization associated with equipment repairs and regulatory inspections. Offshore revenues increased $0.3 million, primarily related to higher transportation rates. Additionally, there was a rise in pass-through revenue (primarily fuel) of $0.2 million. In our land transportation division, revenue increased $2.1 million, primarily due to a $2.7 million increase in freight revenue related to a 6% increase in total miles. Ancillary revenue decreased $0.5 million.
Current wording
Revenues. Revenues increased $4.8 million. In our marine transportation division, inland revenues increased $4.5 million, primarily related to higher transportation rates, offset by a decrease in utilization associated with equipment repairs and regulatory inspections. Offshore revenues increased $0.4 million, primarily related to higher transportation rates, offset by a decrease in utilization associated with equipment repairs and regulatory inspections. Pass-through revenue (primarily fuel) decreased $0.2 million. In our land transportation division, freight revenue increased $4.9 million, primarily due to a 4% increase in total miles. Ancillary revenue decreased $4.8 million.
Previous wording
Operating expenses. The increase in operating expenses is primarily a result of lease expense of $3.0 million, employee-related expenses of $1.1 million, insurance premiums of $1.5 million, outside hauls and towing of $0.3 million and pass-through expenses (primarily fuel) of $0.2 million, offset by repairs and maintenance of $2.4 million.
Current wording
Operating expenses. The increase in operating expenses is primarily a result of lease expense of $3.9 million, insurance premiums of $1.6 million, employee-related expenses of $1.2 million, outside hauls of $0.4 million and insurance claims of $0.3 million, offset by decreases in repairs and maintenance of $3.9 million and pass-through expenses (primarily fuel) of $1.2 million. The increase in lease expense, as well as the decrease in repairs and maintenance are related to the replacement of tractors and trailers in our land transportation division.
Previous wording
Products revenues. Products revenues decreased $8.9 million as a result of a 21% decrease in sales volumes, primarily related to a 26% decrease in sulfur volumes, offset by an increase of $5.7 million due to a 15% rise in average sulfur services sales prices.
Current wording
Products revenues. Product revenues decreased $7.9 million. A decrease of $10.6 million was the result of a 33% decrease in sales volumes, primarily related to a 27% decrease in sulfur volumes due to reduced product movement on the Margaret Sue related to weather activity in the Gulf of Mexico when compared to the third quarter of 2023. This decrease was offset by an increase of $2.6 million due to a 9% rise in average sulfur services sales prices.
Previous wording
Cost of products sold. A 10% decrease in product cost impacted cost of products sold by $5.3 million, resulting from reduced commodity prices. A 4% decrease in sales volumes resulted in a decrease in cost of products sold of $1.8 million. Margin per ton increased $7.67, or 15%.
Current wording
Cost of products sold. Cost of products sold decreased $13.8 million. A 15% decrease in sales volumes resulted in a decrease in cost of products sold of $10.8 million. A 4% decrease in product cost impacted cost of products sold by $3.0 million, resulting from reduced commodity prices. Margin per ton increased $8.97, or 20%.
Previous wording
Operating expenses. Operating expenses decreased $0.4 million due to reductions of $0.3 million in utilities expense combined with $0.3 million in marine rebill expenses. These reductions were offset by an increase of $0.1 million in employment expenses and $0.1 million in repairs and maintenance.
Current wording
Operating expenses. Operating expenses decreased $0.8 million due to reductions of $0.4 million in utilities expense resulting from lower natural gas prices, $0.4 million in marine pass-through expenses (primarily fuel), $0.2 million in outside services, and $0.1 million in marine operating expense. These reductions were offset by an increase of $0.2 million in repairs and maintenance and $0.1 million in employment expenses.
Previous wording
Products Revenues. Product revenues decreased $13.6 million as a result of the exit of the butane optimization business in the second quarter 2023. For the remaining products, sales volumes increased 3%, increasing revenues by $2.0 million, primarily related to a 3% increase in other specialty products sales volumes. Our average sales price per barrel increased $0.08, resulting in a de minimis increase to revenue.
Current wording
Products Revenues. Products revenues decreased $0.5 million. Sales volumes increased 9%, increasing revenues by $5.8 million, primarily related to a 14% increase in NGL sales volumes. Our average sales price per barrel decreased $8.60, resulting in a $5.3 million decrease to revenue.
Previous wording
Cost of products sold. Cost of products sold decreased $16.1 million as a result of the exit of the butane optimization business in the second quarter of 2023. For the remaining products, the increase in sales volumes of 3% resulted in a $1.8 million increase to cost of products sold. Our average cost per barrel decreased $0.45, or 1%, decreasing cost of products sold by $0.3 million. Our margins increased $0.53 per barrel, or 5%, during the period.
Current wording
Cost of products sold. Cost of products sold increased $2.3 million. The increase in sales volumes of 9% resulted in a $5.2 million increase to cost of products sold. Our average cost per barrel decreased $4.78, or 5%, decreasing cost of products sold by $2.9 million. Our margins decreased $3.82 per barrel, or 27%, during the period.
Previous wording
Products Revenues. Product revenues decreased $70.5 million as a result of the exit of the butane optimization business in the second quarter of 2023. For the remaining products, sales volumes decreased 3%, lowering revenues by $4.0 million, primarily related to an 3% decrease in NGL sales volumes. Products revenues decreased $3.0 million as a result of a 2% reduction in average specialty products sales prices.
Current wording
Products Revenues. Products revenues decreased $77.0 million. A decrease of $70.5 million was the result of the exit of the butane optimization business in the second quarter of 2023. For the remaining products, sales volumes increased 1%, increasing revenues by $1.7 million, primarily related to a 2% increase in NGL sales volumes. Products revenues decreased $8.2 million as a result of a 4% reduction in average specialty products sales prices.
Previous wording
Cost of products sold. Cost of products sold decreased $72.3 million as a result of the exit of the butane optimization business in the second quarter of 2023. For the remaining products, a 3% decrease in product cost impacted cost of products sold by $3.5 million, resulting from reduced commodity prices. A 3% reduction in sales volumes resulted in an additional decrease in cost of products sold of $3.6 million.
Current wording
Cost of products sold. Cost of products sold decreased $77.1 million. A decrease of $72.3 million was the result of the exit of the butane optimization business in the second quarter of 2023. For the remaining products, a 3% decrease in product cost impacted cost of products sold by $6.3 million, resulting from reduced commodity prices. A 1% increase in sales volumes resulted in an increase in cost of products sold of $1.5 million.
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased $0.4 million due to a $0.5 million reduction associated with the exit of the butane optimization business in the second quarter of 2023 offset by an increase of $0.1 million in employee-related expenses.
Current wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased $0.5 million associated with the exit of the butane optimization business in the second quarter of 2023 offset by an increase of $0.5 million in employee-related expenses.
Previous wording
Comparative Components of Interest Expense, Net for the Six Months Ended June 30, 2024 and 2023
Current wording
Comparative Components of Interest Expense, Net for the Nine Months Ended September 30, 2024 and 2023
Previous wording
Indirect selling, general and administrative expenses decreased for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, as a result of a decrease in overhead expenses allocated from Martin Resource Management. Indirect selling, general and administrative expenses decreased for the six months ended June 30, 2024, compared to the six months ended June 30, 2023, as a result of decreases in overhead expenses allocated from Martin Resource Management of $0.2 million, employee-related expenses of $0.1 million, and professional fees of $0.1 million.
Current wording
Indirect selling, general and administrative expenses decreased for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, as a result of a decrease in overhead expenses allocated from Martin Resource Management Corporation. Indirect selling, general and administrative expenses decreased for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, as a result of decreases in overhead expenses allocated from Martin Resource Management Corporation of $0.4 million and employee-related expenses of $0.1 million.
Previous wording
Under the Omnibus Agreement, we are required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. The Conflicts Committee of our general partner approved the following reimbursement amounts during the three and six months ended June 30, 2024 and 2023:
Current wording
Under the Omnibus Agreement, we are required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. The Conflicts Committee of our general partner approved the following reimbursement amounts during the three and nine months ended September 30, 2024 and 2023:
Previous wording
The following table details the cash flow changes between the six months ended June 30, 2024 and 2023:
Current wording
The following table details the cash flow changes between the nine months ended September 30, 2024 and 2023:
Previous wording
Net cash provided by operating activities. The decrease in net cash provided by operating activities for the six months ended June 30, 2024, includes an increase in operating results and other non-cash charges of $2.4 million, offset by an unfavorable variance in cash flows associated with changes in working capital of $79.3 million.
Current wording
Net cash provided by operating activities. The decrease in net cash provided by operating activities for the nine months ended September 30, 2024, includes an increase in operating results and other non-cash charges of $1.2 million. This increase was offset by an unfavorable variance in cash flows associated with changes in working capital of $101.1 million, primarily associated with the reduction in working capital associated with the exit of the butane optimization business.
Previous wording
Net cash used in investing activities. Net cash used in investing activities for the six months ended June 30, 2024, increased $23.7 million. An increase in cash used of $13.2 million resulted from higher payments for capital expenditures and plant turnaround costs in 2024. Further, investments in unconsolidated entities increased $6.9 million, while net proceeds from the sale of property, plant and equipment decreased $3.5 million.
Current wording
Net cash used in investing activities. Net cash used in investing activities for the nine months ended September 30, 2024, increased $27.2 million. An increase in cash used of $16.0 million resulted from higher payments for capital expenditures and plant turnaround costs in 2024. Further, investments in unconsolidated entities increased $6.9 million, while net proceeds from the sale of property, plant and equipment decreased $4.2 million.
Previous wording
Net cash (used in) provided by financing activities. Net cash (used in) provided by financing activities for the six months ended June 30, 2024, increased primarily as a result of an increase in borrowings of long-term debt of $319.9 million, offset by a decrease in repayments of long-term debt of $406.2 million. Additionally, payments of debt issuance costs decreased $14.2 million.
Current wording
Net cash (used in) provided by financing activities. Net cash (used in) provided by financing activities for the nine months ended September 30, 2024, increased primarily as a result of an decrease in borrowings of long-term debt of $293.4 million, offset by a decrease in repayments of long-term debt of $406.2 million. Additionally, payments of debt issuance costs decreased $14.2 million.
Previous wording
At June 30, 2024, we maintained a $150.0 million credit facility that matures on February 8, 2027. As of June 30, 2024, we had $58.0 million outstanding under the credit facility and $9.2 million of outstanding irrevocable letters of credit, leaving a maximum available amount to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $82.9 million. After giving effect to our then current borrowings, letters of credit, and the financial covenants contained in our credit facility, we had the ability to borrow approximately $82.9 million in additional amounts thereunder as of June 30, 2024.
Current wording
At September 30, 2024, we maintained a $150.0 million credit facility that matures on February 8, 2027. As of September 30, 2024, we had $86.5 million outstanding under the credit facility and $9.2 million of outstanding irrevocable letters of credit, leaving a maximum available amount to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $54.4 million. After giving effect to our then current borrowings, letters of credit, and the financial covenants contained in our credit facility, we had the ability to borrow approximately $54.4 million in additional amounts thereunder as of September 30, 2024.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Depreciation and amortization. Depreciation and amortization increased due to the amortization of higher turnaround spend in 2023 as compared to 2022.
Current report — wording carried from elsewhere
Selling, general and administrative expenses. Selling, general and administrative expenses increased $0.4 million due to employee-related expenses.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Operating expenses. Operating expenses increased primarily as a result of liability insurance claims of $1.4 million, repairs and maintenance of $0.2 million, operating supplies of $0.2 million and employee-related expenses of $0.5 million, offset by a decrease in natural gas utilities of $0.9 million.
Previous report — wording carried elsewhere
Depreciation and amortization. Depreciation and amortization increased primarily as a result of capital expenditures offset by recent disposals.