MARTIN MIDSTREAM PARTNERS L.P.
For the period ended Jun 30, 2025. Filed Jul 21, 2025.
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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.
Jun 30, 2025 · Filed Jul 21, 2025
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 2025-03-31; filed 2025-04-21.
0001176334-25-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-21.
0001176334-25-000113
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 133 previous paragraphs and 157 current paragraphs.
92 unchanged; 36 reworded; 20 added; 4 removed; 1 previous and 9 current paragraphs rearranged.
Tables are not compared: 14 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 (20)
Current report
One Big Beautiful Bill Act. On July 4, 2025, federal legislation commonly referred to as the “One Big Beautiful Bill Act” was enacted, resulting in changes to U.S. federal income tax law. Pursuant to ASC 740, Income Taxes, the effects of changes in tax law are recognized in the period of enactment. As such, this legislation constitutes a non-recognized subsequent event with respect to our financial statements for the period ended June 30, 2025. We have preliminarily assessed the impact of the legislation and expect an immaterial net increase in income tax expense related to our Taxable Subsidiary in the third quarter of 2025.
Current report
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
Current report
Revenues. Revenues decreased $0.2 million. Revenue at our underground storage terminal decreased $0.5 million primarily as a result of lower throughput fees and decreased volumes. Revenue at our Smackover refinery increased $0.4 million primarily due to increases in throughput revenue and reservation fees.
Current report
Operating expenses. Operating expenses decreased primarily due to lower insurance claims of $1.5 million (crude pipeline spill that occurred in 2024). This decrease was offset by increases at our Smackover refinery in natural gas utilities of $0.4 million, employee-related expenses of $0.2 million, professional fees of $0.2 million and insurance premiums of $0.2 million (higher rates).
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.
Current report
Depreciation and amortization. The decrease in depreciation and amortization is primarily the result of assets being fully depreciated, offset by capital expenditures.
Current report
Operating expenses. Operating expenses decreased primarily as a result of insurance claims of $1.7 million (primarily crude pipeline spill that occurred in 2024). This decrease was offset by increases in employee-related expenses of $0.5 million and insurance premiums of $0.4 million (higher rates) across all terminals.
Current report
Depreciation and amortization. The decrease in depreciation and amortization is primarily the result of assets being fully depreciated, offset by capital expenditures.
Current report
Operating expenses. The decrease in operating expenses is primarily a result of employee-related expenses of $1.2 million, insurance claims of $0.7 million, repairs and maintenance of $0.6 million and pass-through expenses (primarily fuel) of $0.6 million, offset by increases in lease expense of $1.2 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.
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to uncollectible accounts receivable.
Current report
Operating expenses. The decrease in operating expenses is primarily a result of employee-related expenses of $1.7 million, pass-through expenses (primarily fuel) of $1.6 million, insurance claims of $0.7 million and repairs and maintenance of $0.7 million, offset by increases in lease expense of $2.0 million and insurance premiums of $1.5 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.
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to uncollectible accounts receivable of $0.6 million and higher employee-related expenses of $0.4 million.
Current report
Products revenues. Product revenues increased $6.3 million. Product revenues increased by $11.4 million, as a result of a 40% increase in sales volumes, primarily related to a 58% increase in sulfur volumes, which increase was offset by a decrease of $5.1 million due to a 15% reduction in average sulfur services sales prices.
Current report
Cost of products sold. Cost of products sold increased $7.1 million. A 40% increase in sales volumes impacted cost of products sold by $8.4 million. A 6% decrease in product cost impacted cost of products sold by $1.3 million, resulting from decreased commodity prices. Margin per ton decreased $24.89, or 33%.
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.
Current report
Products Revenues. Products revenues decreased $7.0 million. Sales volumes increased 4%, increasing revenues by $2.6 million, primarily related to a 6% increase in NGL sales volumes. Our average sales price per barrel decreased $15.06, resulting in a $9.5 million decrease to revenue.
Current report
Cost of products sold. Cost of products sold decreased $5.5 million. The increase in sales volumes of 4% resulted in a $2.3 million increase to cost of products sold. Our average cost per barrel decreased $12.38, or 13%, decreasing cost of products sold by $7.8 million. Our margins decreased $2.67 per barrel, or 22%, during the period.
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses remained relatively consistent.
Current report
Indirect selling, general and administrative expenses increased for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, as a result of an increase in overhead expenses allocated from Martin Resource Management Corporation.
Current report
Cash Flows - Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Removed paragraphs (4)
Previous report
Operating expenses. Operating expenses decreased primarily as a result of natural gas utilities of $0.3 million and tax fees of $0.3 million. These decreases were offset by an increase in employee-related expenses of $0.3 million.
Previous report
Depreciation and amortization. Depreciation and amortization decreased due to certain assets becoming fully depreciated subsequent to the first quarter of 2024.
Previous report
Cash Flows - Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Previous report
On March 14, 2025, President Trump signed a Joint Resolution of Disapproval under the Congressional Review Act to prohibit the Inflation Reduction Act’s waste methane emissions charge rules, which were finalized in November 2024, from taking effect.
Reworded paragraphs (36)
Previous wording
We were formed in 2002 by Martin Resource Management Corporation, a privately-held company whose initial predecessor was incorporated in 1951 as a supplier of products and services to drilling rig contractors. Since then, Martin Resource Management Corporation has expanded its operations through acquisitions and internal expansion initiatives as its management identified and capitalized on the needs of producers and purchasers of petroleum products and by-products and other bulk liquids. Martin Resource Management Corporation is an important supplier and customer of ours. As of March 31, 2025, Martin Resource Management Corporation owned 16.3% of our total outstanding common limited partner units and 100% of MMGP Holdings, LLC ("Holdings"), which is the sole member of Martin Midstream GP LLC ("MMGP"), our general partner. MMGP owns a 2.0% general partner interest in us.
Current wording
We were formed in 2002 by Martin Resource Management Corporation, a privately-held company whose initial predecessor was incorporated in 1951 as a supplier of products and services to drilling rig contractors. Since then, Martin Resource Management Corporation has expanded its operations through acquisitions and internal expansion initiatives as its management identified and capitalized on the needs of producers and purchasers of petroleum products and by-products and other bulk liquids. Martin Resource Management Corporation is an important supplier and customer of ours. As of June 30, 2025, Martin Resource Management Corporation owned 19.6% of our total outstanding common limited partner units and 100% of MMGP Holdings, LLC ("Holdings"), which is the sole member of Martin Midstream GP LLC ("MMGP"), our general partner. MMGP owns a 2.0% general partner interest in us.
Previous wording
Quarterly Distribution. On April 16, 2025, we declared a quarterly cash distribution of $0.005 per common unit for the first quarter of 2025, or $0.020 per common unit on an annualized basis, which will be paid on May 15, 2025, to unitholders of record as of May 8, 2025.
Current wording
Quarterly Distribution. On July 16, 2025, we declared a quarterly cash distribution of $0.005 per common unit for the second quarter of 2025, or $0.020 per common unit on an annualized basis, which will be paid on August 14, 2025, to unitholders of record as of August 7, 2025.
Previous wording
Martin Resource Management Corporation owns approximately 16.3% of the outstanding limited partner units and indirectly owns 100% of MMGP, our general partner, through its 100% interest in Holdings, which is the sole member of MMGP. MMGP owns a 2% general partner interest in us.
Current wording
Martin Resource Management Corporation owns approximately 19.6% of the outstanding limited partner units and indirectly owns 100% of MMGP, our general partner, through its 100% interest in Holdings, which is the sole member of MMGP. MMGP owns a 2% general partner interest in us.
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 $41.1 million of direct costs and expenses for the three months ended March 31, 2025, compared to $39.3 million for the three months ended March 31, 2024. 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 $42.8 million of direct costs and expenses for the three months ended June 30, 2025, compared to $42.9 million for the three months ended June 30, 2024. We reimbursed Martin Resource Management Corporation for $83.9 million of direct costs and expenses for the six months ended June 30, 2025, compared to $82.2 million for the six months ended June 30, 2024. 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 March 31, 2025 and 2024, the Conflicts Committee approved reimbursement amounts of $3.4 million and $3.4 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 June 30, 2025 and 2024, the Conflicts Committee approved reimbursement amounts of $3.4 million. In each of the six months ended June 30, 2025 and 2024, the Conflicts Committee approved reimbursement amounts of $6.8 million. 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
For a more comprehensive discussion concerning the Omnibus Agreement and the other agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13. Certain Relationships and Related Transactions, and Director Independence" set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 24, 2025.
Current wording
For a more comprehensive discussion concerning the Omnibus Agreement and the other agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13. Certain Relationships and Related
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 25% and 26% of our total costs and expenses during the three months ended March 31, 2025 and 2024, 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 28% and 28% of our total costs and expenses during the three months ended June 30, 2025 and 2024, respectively. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 26% and 27% of our total costs and expenses during the six months ended June 30, 2025 and 2024, 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 15% of our total revenues for the three months ended March 31, 2025 and 2024, 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 14% of our total revenues for the three months ended June 30, 2025 and 2024, respectively. Our sales to Martin Resource Management Corporation accounted for approximately 14% and 15% of our total revenues for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended March 31, 2025 and 2024, which represents EBITDA, Adjusted EBITDA, 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 six months ended June 30, 2025 and 2024, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:
Previous wording
The results of operations for the three months ended March 31, 2025 and 2024, have been derived from our consolidated and condensed financial statements.
Current wording
The results of operations for the three and six months ended June 30, 2025 and 2024, 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 months ended March 31, 2025 and 2024. 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 six months ended June 30, 2025 and 2024. 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 decreased $0.9 million. Revenue at our underground storage terminal decreased $0.6 million due to a $0.9 million decrease in throughput revenue, offset by an increase in reservation fees of $0.3 million. Revenue at our Smackover refinery decreased $0.4 million, primarily as a result of decreased natural gas surcharge revenue of $0.6 million due to a decrease in usage, offset by increases in reservation fees of $0.1 million and throughput revenue of $0.1 million. Our shore-based terminals decreased $0.1 million due to decreased space rent. Revenue at our specialty terminals increased $0.2 million, primarily as a result of higher throughput revenue.
Current wording
Revenues. Revenues decreased $1.0 million. Revenue at our underground storage terminal decreased $1.1 million primarily as a result of lower throughput fees combined with decreased volumes. Our shore-based terminals decreased $0.2 million due to decreased space rent of $0.3 million, offset by increased throughput revenue of $0.1 million. Revenue at our specialty terminals increased $0.2 million, primarily as a result of increased storage and service revenue.
Previous wording
Revenues. Revenues decreased $4.6 million. In our marine transportation division, inland revenues decreased $1.7 million, primarily related to lower transportation rates combined with a decrease in utilization associated with equipment repairs and regulatory inspections. Offshore revenues increased $0.9 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 $0.3 million. In our land transportation division, freight revenue decreased $2.6 million, primarily due to a 6% decrease in total miles. Ancillary revenue decreased $0.9 million.
Current wording
Revenues. Revenues decreased $8.3 million. In our marine transportation division, inland revenues decreased $2.0 million, primarily related to lower transportation rates combined with a decrease in utilization associated with equipment repairs and regulatory inspections. Offshore revenues increased $1.2 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 $0.3 million. In our land transportation division, freight revenue decreased $5.4 million, primarily due to a 6% decrease in total miles. Ancillary revenue decreased $1.9 million.
Previous wording
Services revenues. Services revenues increased $0.7 million largely associated with reservation revenue from the ELSA joint venture beginning in the fourth quarter 2024. Additional increases were the result of a contractually prescribed, index-based fee adjustment.
Current wording
Services revenues. Services revenues increased $0.6 million largely associated with reservation revenue from the ELSA joint venture beginning in the fourth quarter 2024. Additional increases were the result of a contractually prescribed, index-based fee adjustment.
Previous wording
Operating expenses. Operating expenses increased $0.9 million due to $0.5 million in outside services, $0.2 million in marine pass-through expenses, $0.1 million in marine operating expenses, and $0.1 million in repairs and maintenance.
Current wording
Operating expenses. Operating expenses increased due to an increase of $0.3 million in outside services, $0.2 million in marine operating expenses, $0.2 million in repairs and maintenance, $0.1 million in utilities, and $0.1 million in marine pass-through expenses.
Previous wording
Products revenues. Products revenues increased $14.3 million. An increase of $11.1 million was primarily due to 33% higher sales volumes. Additionally, an increase of $3.2 million related to a 10% increase in average sulfur products sales prices.
Current wording
Products revenues. Products revenues increased $20.6 million. Product Revenues increased by $24.4 million related to a 41% increase in sales volume, primarily a 52% increase in sulfur volumes, which increase was offset by a decrease of $3.8 million primarily due to a 6% reduction in average sulfur products sales prices.
Previous wording
Cost of products sold. Cost of products sold increased $9.2 million. A 33% increase in sales volumes resulted in an increase in cost of products sold of $8.0 million. A 5% increase in product cost impacted cost of products sold by $1.2 million, resulting from higher commodity prices. Margin per ton increased $11.67, or 26%.
Current wording
Cost of products sold. Cost of products sold increased $16.4 million. A 41% increase in sales volumes resulted in an increase in cost of products sold of $17.7 million. A 3% decrease in product cost impacted cost of products sold by $1.3 million, resulting from lower commodity prices. Margin per ton decreased $7.69, or 13%.
Previous wording
Depreciation and amortization. The increase in depreciation and amortization is primarily the result of capital expenditures offset by recent disposals.
Current wording
Depreciation and amortization. Depreciation and amortization decreased as a result of capital expenditures offset by recent disposals.
Previous wording
Products Revenues. Product revenues increased by $3.0 million. A 6% rise in sales volumes increased revenue by $3.9 million, primarily driven by a 7% increase in NGL sales volumes. This was partially offset by a 1% decline in average specialty product sales prices, which reduced revenue by $0.9 million.
Current wording
Products Revenues. Product revenues decreased by $4.0 million. A 5% rise in sales volumes increased revenue by $6.6 million, primarily driven by a 6% increase in NGL sales volumes. This was offset by an 8% decline in average specialty product sales prices, which reduced revenue by $10.6 million.
Previous wording
Cost of products sold. Cost of products sold increased $3.4 million. A 6% increase in sales volumes resulted in an increase in cost of products sold of $3.6 million. A minimal decrease in product cost impacted cost of products sold by $0.2 million, resulting from reduced commodity prices.
Current wording
Cost of products sold. Cost of products sold decreased $2.1 million. A 5% increase in sales volumes resulted in an increase in cost of products sold of $6.0 million. A 7% decline in average product cost impacted cost of products sold by $8.1 million, resulting from reduced commodity prices. Our margins decreased $1.87 per barrel, or 17%, during the period.
Previous wording
Indirect selling, general and administrative expenses increased for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, primarily due to transaction expenses associated with the terminated Merger with Martin Resource Management Corporation of $0.8 million.
Current wording
Indirect selling, general and administrative expenses increased for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, primarily due to transaction expenses associated with the terminated Merger with Martin Resource Management Corporation of $0.8 million, combined with an increase in overhead expenses allocated from Martin Resource Management Corporation.
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 months ended March 31, 2025 and 2024:
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 six months ended June 30, 2025 and 2024:
Previous wording
The following table details the cash flow changes between the three months ended March 31, 2025 and 2024:
Current wording
The following table details the cash flow changes between the six months ended June 30, 2025 and 2024:
Previous wording
Net cash provided by (used in) operating activities. The decrease in net cash provided by operating activities for the three months ended March 31, 2025, includes a decrease in operating results and other non-cash charges of $4.1 million, coupled with an unfavorable variance in cash flows associated with changes in working capital of $12.0 million.
Current wording
Net cash provided by operating activities. The increase in net cash provided by operating activities for the six months ended June 30, 2025, includes a decrease in operating results and other non-cash charges of $9.7 million, offset by a favorable variance in cash flows associated with changes in working capital of $12.6 million.
Previous wording
Net cash used in investing activities. Net cash used in investing activities for the three months ended March 31, 2025, decreased $11.2 million. A decrease in cash used of $11.0 million resulted from lower payments for capital expenditures and plant turnaround costs in 2025. Additionally, net proceeds from the sale of property, plant and equipment increased $0.2 million.
Current wording
Net cash used in investing activities. Net cash used in investing activities for the six months ended June 30, 2025, decreased $25.2 million. A decrease in cash used of $17.9 million resulted from lower payments for capital expenditures and plant turnaround costs in 2025. Investments in DSM Semichem LLC decreased $6.9 million. Additionally, net proceeds from the sale of property, plant and equipment increased $0.4 million.
Previous wording
Net cash (used in) provided by financing activities. Net cash provided by financing activities for the three months ended March 31, 2025, increased primarily as a result of a decrease in repayments of long-term debt of $15.0 million, offset by a decrease in borrowings of long-term debt of $10.0 million.
Current wording
Net cash (used in) provided by financing activities. Net cash provided by (used in) financing activities for the six months ended June 30, 2025, decreased primarily as a result of an increase in repayments of long-term debt of $8.5 million, coupled with a decrease in borrowings of long-term debt of $19.6 million.
Previous wording
Letters of Credit. At March 31, 2025, we had outstanding irrevocable letters of credit in the amount of $9.2 million, which were issued under our credit facility.
Current wording
Letters of Credit. At June 30, 2025, we had outstanding irrevocable letters of credit in the amount of $0.7 million, which were issued under our credit facility.
Previous wording
At March 31, 2025, we maintained a $150.0 million credit facility that matures on February 8, 2027. As of March 31, 2025, we had $66.0 million outstanding under the credit facility and $9.2 million of outstanding irrevocable letters of credit, leaving a maximum amount available to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $74.9 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 $23.4 million in additional amounts thereunder as of March 31, 2025.
Current wording
At June 30, 2025, we maintained a $150.0 million credit facility that matures on February 8, 2027. As of June 30, 2025, we had $41.0 million outstanding under the credit facility and $0.7 million of outstanding irrevocable letters of credit, leaving a maximum amount available to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $108.3 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 $31.3 million in additional amounts thereunder as of June 30, 2025.
Previous wording
The credit facility is used for ongoing working capital needs and general partnership purposes, and to finance permitted investments, acquisitions and capital expenditures. The level of outstanding draws on our credit facility from January 1, 2025 through March 31, 2025 ranged from a low of $53.5 million to a high of $86.0 million.
Current wording
The credit facility is used for ongoing working capital needs and general partnership purposes, and to finance permitted investments, acquisitions and capital expenditures. The level of outstanding draws on our credit facility from January 1, 2025 through June 30, 2025 ranged from a low of $41.0 million to a high of $87.0 million.
Previous wording
The applicable margin for Adjusted Term SOFR borrowings at March 31, 2025 is 3.25%. The applicable margin for Adjusted Term SOFR borrowings effective April 16, 2025 is 3.50%.
Current wording
The applicable margin for Adjusted Term SOFR borrowings at June 30, 2025 is 3.50%. The applicable margin for Adjusted Term SOFR borrowings effective July 16, 2025 is 3.50%.
Previous wording
• a minimum Interest Coverage Ratio (as defined in the credit facility) of at least 1.75:1.00 for the fiscal quarter ended March 31, 2025 and the fiscal quarters ending June 30, 2025 and September 30, 2025, and at least 2.00:1.00 for the fiscal quarter ending December 31, 2025 and each fiscal quarter thereafter;
Current wording
• a minimum Interest Coverage Ratio (as defined in the credit facility) of at least 1.75:1.00 for the fiscal quarter ended June 30, 2025 and the fiscal quarter ending September 30, 2025, and at least 2.00:1.00 for the fiscal quarter ending December 31, 2025 and each fiscal quarter thereafter;
Previous wording
• a maximum First Lien Leverage Ratio (as defined in the credit facility) of not more than 1.25:1.00 for the fiscal quarter ended March 31, 2025 and the fiscal quarters ending June 30, 2025 and September 30, 2025, and not more than 1.50:1.00 for the fiscal quarter ending December 31, 2025 and each fiscal quarter thereafter.
Current wording
• a maximum First Lien Leverage Ratio (as defined in the credit facility) of not more than 1.25:1.00 for the fiscal quarter ended June 30, 2025 and the fiscal quarter ending September 30, 2025, and not more than 1.50:1.00 for the fiscal quarter ending December 31, 2025 and each fiscal quarter thereafter.
Previous wording
On March 31, 2025, we had cash and cash equivalents of $0.05 million and available borrowing capacity of $74.9 million under our credit facility with $66.0 million of borrowings outstanding. 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 $23.4 million in additional amounts thereunder as of March 31, 2025.
Current wording
On June 30, 2025, we had cash and cash equivalents of $0.05 million and available borrowing capacity of $108.3 million under our credit facility with $41.0 million of borrowings outstanding. 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 $31.3 million in additional amounts thereunder as of June 30, 2025.
Previous wording
Inflation did not have a material impact on our results of operations for the three months ended March 31, 2025 or 2024. Inflation may increase the cost to acquire or replace property, plant and equipment. It may also increase the costs of labor and supplies. In the future, increasing energy prices for products consumed by our operations, such as diesel fuel, natural gas, chemicals, and other supplies, could adversely affect our results of operations. An increase in price of these products would increase our operating expenses which could adversely affect net income. We cannot provide assurance that we will be able to pass along increased operating expenses to our customers.
Current wording
Inflation did not have a material impact on our results of operations for the six months ended June 30, 2025 or 2024. Inflation may increase the cost to acquire or replace property, plant and equipment. It may also increase the costs of labor and supplies. In the future, increasing energy prices for products consumed by our operations, such as diesel fuel, natural gas, chemicals, and other supplies, could adversely affect our results of operations. An increase in price of these products would increase our operating expenses which could adversely affect net income. We cannot provide assurance that we will be able to pass along increased operating expenses to our customers.
Previous wording
We incurred no material environmental costs, liabilities or expenditures to mitigate or eliminate environmental contamination during the three months ended March 31, 2025.
Current wording
We incurred no material environmental costs, liabilities or expenditures to mitigate or eliminate environmental contamination during the six months ended June 30, 2025.
Previous wording
On March 6, 2024, the SEC adopted final rules that require the registrants to disclose certain climate-related information in registration statements and annual reports. Litigation challenging the new rule was filed by multiple parties in multiple jurisdictions, which was consolidated and assigned to the U.S. Court of Appeals for the Eighth Circuit. On April 4, 2024, the SEC announced it was voluntarily delaying the implementation of the climate disclosure regulations while the U.S. Court of Appeals considered the litigation. On March 27, 2025, the SEC voted to end the defense of the rules in the litigation.
Current wording
On March 6, 2024, the SEC adopted final rules that require the registrants to disclose certain climate-related information in registration statements and annual reports. Litigation challenging the new rule was filed by multiple parties in multiple jurisdictions, which was consolidated and assigned to the U.S. Court of Appeals for the Eighth Circuit. On April 4, 2024, the SEC announced it was voluntarily delaying the implementation of the climate disclosure regulations while the U.S. Court of Appeals considered the litigation. On March 27, 2025, the SEC voted to end the defense of the rules in the litigation. On April 4, 2025, a group of 18 intervenor-respondent states and the District of Columbia moved to hold the cases in abeyance until the SEC amends or rescinds the regulations, which motion was granted by the Eighth Circuit in an order issued on April 24, 2025. Further, the Eighth Circuit directed the SEC to file a status report within 90 days (by July 23, 2025) advising the Court whether the SEC intends to review or reconsider the rules at issue in the case.
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Current report — wording carried from elsewhere
Transactions, and Director Independence" set forth in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 24, 2025.
Current report — wording carried from elsewhere
Revenues. Revenues decreased $3.8 million. In our marine transportation division, inland revenues decreased $0.3 million, primarily related to lower transportation rates. Offshore revenues increased $0.3 million, primarily related to higher transportation rates. Pass-through revenue (primarily fuel) increased $0.1 million. In our land transportation division, freight revenue decreased $2.8 million, primarily due to a 5% decrease in total miles. Ancillary revenue decreased $1.1 million.
Current report — wording carried from elsewhere
Depreciation and amortization. The decrease in depreciation and amortization is primarily the result of asset disposals, offset by capital expenditures.
Current report — wording carried from elsewhere
Depreciation and amortization. Depreciation and amortization increased due to the amortization of higher turnaround spend as well as certain assets being placed into service.
Current report — wording carried from elsewhere
Services revenues. Services revenues increased $1.3 million largely associated with reservation revenue from the ELSA joint venture beginning in the fourth quarter 2024. Additional increases were the result of a contractually prescribed, index-based fee adjustment.
Current report — wording carried from elsewhere
Operating expenses. Operating expenses increased $1.8 million due to $0.8 million in outside services, $0.3 million in marine pass-through expenses, $0.3 million in marine operating expenses, $0.2 million in repairs and maintenance, and $0.1 million in utilities.
Current report — wording carried from elsewhere
Operating expenses. Operating expenses remained relatively consistent.
Current report — wording carried from elsewhere
Depreciation and amortization. Depreciation and amortization decreased as a result of capital expenditures offset by recent disposals.
Current report — wording carried from elsewhere
Comparative Components of Interest Expense, Net for the Six Months Ended June 30, 2025 and 2024
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Previous report — wording carried elsewhere
Operating expenses. Operating expenses remained consistent.