MARTIN MIDSTREAM PARTNERS L.P.
For the period ended Mar 31, 2026. Filed Apr 27, 2026.
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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.
Mar 31, 2026 · Filed Apr 27, 2026
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 2025-09-30; filed 2025-10-20.
0001176334-25-000127
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-27.
0001176334-26-000022
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 163 previous paragraphs and 140 current paragraphs.
89 unchanged; 42 reworded; 7 added; 22 removed; 10 previous and 2 current paragraphs rearranged.
Tables are not compared: 21 previous and 14 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
Amendment to Credit Facility. On March 31, 2026, we entered into the Third Amendment with Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto, which amends the Credit Agreement.
Current report
◦require the Operating Partnership to maintain a maximum Total Leverage Ratio (as defined in the Credit Agreement) of not more than 5.50 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and December 31, 2026, stepping down to 5.30 to 1.00 for the fiscal quarter ending March 31, 2027, stepping down to 5.25 to 1.00 for the fiscal quarter ending June 30, 2027, and further stepping down to 5.00 to 1.00 for the fiscal quarter ending September 30, 2027 and each fiscal quarter thereafter.
Current report
Operating expenses. Operating expenses increased primarily as a result of higher rates for natural gas utilities of $0.4 million at our Smackover refinery. Additionally, employee-related expenses increased $0.4 million and insurance premiums increased $0.2 million across all terminals as a result of higher rates.
Current report
Margin per ton decreased by $24.11, or 43%, during the first quarter of 2026, primarily reflecting unfavorable performance in the fertilizer segment. This decline was driven by higher input costs, principally sulfur and ammonia, as well as reduced farmer affordability, both of which adversely impacted fertilizer product demand.
Current report
Selling, general and administrative expenses. Selling, general and administrative expenses increased primarily due to employee-related expenses.
Current report
Cash Flows - Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Current report
Amendment to Credit Facility. On March 31, 2026, we entered into the Third Amendment with Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto, which amends the Credit Agreement.
Removed paragraphs (22)
Previous report
Amendment to Credit Facility. On September 24, 2025, we entered into the Second Amendment to the Credit Agreement to, among other things:
Previous report
▪require us to maintain a maximum First Lien Leverage Ratio (as defined in the Credit Agreement) of not more than 1.25 to 1.00 for the fiscal quarter ended March 31, 2025 and each fiscal quarter thereafter.
Previous report
Tariffs and Trading Relationships. In April 2025, the U.S. government announced a baseline tariff of 10% on products imported from all countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits, including China. Increased tariffs by the United States have led and may continue to lead to the imposition of retaliatory tariffs by foreign jurisdictions. Additionally, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of raw materials or contribute to inflation in the markets in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
Previous report
Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Previous report
Operating expenses. Operating expenses increased primarily due to increases at our Smackover refinery in natural gas utilities of $0.2 million and employee-related expenses of $0.5 million. These increases were offset by a lower repairs and maintenance at our shore-based terminals of $0.2 million.
Previous 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 $1.0 million and insurance premiums of $0.5 million (higher rates) across all terminals.
Previous report
Revenues. Revenues decreased $6.4 million. In our marine transportation division, inland revenues decreased $4.7 million, primarily related to a decrease in utilization associated with weaker demand and downtime experienced from equipment repairs and regulatory inspections combined, lower transportation rates. Offshore revenues increased $0.3 million, primarily related to higher transportation rates. Pass-through revenue (primarily fuel) increased $0.3 million. In our land transportation division, freight revenue decreased $1.6 million, primarily due to a 4% decrease in total miles. Ancillary revenue decreased $0.7 million.
Previous report
Depreciation and amortization. The decrease in depreciation and amortization is primarily the result of asset disposals, offset by capital expenditures.
Previous report
Depreciation and amortization. The decrease in depreciation and amortization is primarily the result of asset disposals, offset by capital expenditures.
Previous report
Products revenues. Product revenues increased $7.4 million. Product revenues increased by $8.4 million, as a result of a 42% increase in sales volumes, primarily related to a 52% increase in fertilizer volumes, which increase was offset by a decrease of $1.0 million due to a 5% reduction in average sulfur services sales prices.
Previous report
Cost of products sold. Cost of products sold increased $8.8 million. A 42% increase in sales volumes impacted cost of products sold by $7.1 million. An 11% increase in product cost impacted cost of products sold by $1.7 million, resulting from increased commodity prices. Margin per ton decreased $19.36, or 47%.
Previous report
Operating expenses. Operating expenses increased due to an increase of $0.1 million in marine operating expenses and $0.1 million in insurance-related costs.
Previous report
Products Revenues. Products revenues decreased $4.7 million. Sales volumes increased 5%, increasing revenues by $3.1 million, primarily related to a 10% increase in other specialty sales volumes. Our average sales price per barrel decreased $11.64, resulting in a $7.8 million decrease to revenue.
Previous report
Cost of products sold. Cost of products sold decreased $3.6 million. The increase in sales volumes of 5% resulted in a $2.8 million increase to cost of products sold. Our average cost per barrel decreased $9.51, or 11%, decreasing cost of products sold by $6.4 million. Our margins decreased $2.12 per barrel, or 21%, during the period.
Previous report
Selling, general and administrative expenses. Selling, general and administrative decreased $0.5 million primarily due to lower employee-related expenses.
Previous report
Selling, general and administrative expenses. Selling, general and administrative expenses remained relatively consistent.
Previous report
Cash Flows - Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Previous report
On September 24, 2025, we entered into the Second Amendment to the Credit Agreement to, among other things:
Previous report
▪require us to maintain a maximum First Lien Leverage Ratio (as defined in the Credit Agreement) of not more than 1.25 to 1.00 for the fiscal quarter ended March 31, 2025 and each fiscal quarter thereafter.
Previous report
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 September 12, 2025, the U.S. Court of Appeals issued an order to hold the petitions challenging the climate disclosure rules in abeyance pending further action by the SEC.
Previous report
On July 4, 2025, Congress enacted the OBBBA, which, among other things, postpones the U.S. EPA’s imposition of the methane Waste Emissions Charge to 2034, lowers royalties on federal onshore oil and gas leases, and repeals a royalty imposed on waste methane produced from federal oil and gas leases.
Previous report
On July 29, 2025, the EPA issued an interim final rule extending several compliance deadlines associated with the strict new methane rules for the oil and gas industry that were published in March 2024 and took effect in May 2024. On July 29, 2025, the EPA released a pre-publication proposed rule which would rescind the EPA’s 2009 final rule under the Clean Air Act finding that greenhouse gases (“GHGs”) endanger the public health and welfare of current and future generations and that emissions of GHGs from new motor vehicles contribute to GHG pollution that threatens the public health and welfare. On September 16, 2025, the EPA announced a proposal to end the Greenhouse Gas Reporting Program (“GHGRP”) for all sectors except petroleum and natural gas systems (excluding reporting for natural gas distribution). Reporting for petroleum and natural gas systems under the GHGRP would be deferred until 2034 under the proposal.
Reworded paragraphs (42)
Previous wording
•Marketing, distribution, and transportation services for NGLs and blending and packaging services for specialty lubricants and grease.
Current wording
•Marketing, distribution, and transportation services for NGLs and blending and packaging services for specialty lubricants and greases.
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 September 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.
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 March 31, 2026, Martin Resource Management Corporation owned 20.1% 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
•decrease the amount available for us to borrow under the Credit Agreement on a revolving credit basis from $150.0 million to $130.0 million; and
Current wording
•decrease the amount available for the Partnership to borrow under the Credit Agreement on a revolving credit basis from $130.0 million to $115.0 million; and
Previous wording
▪require us to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of at least 1.75 to 1.00 for the fiscal quarter ended March 31, 2025 and each fiscal quarter thereafter;
Current wording
◦require the Partnership to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of at least 1.65 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and
Previous wording
Quarterly Distribution. On October 15, 2025, we declared a quarterly cash distribution of $0.005 per common unit for the third quarter of 2025, or $0.020 per common unit on an annualized basis, which will be paid on November 14, 2025, to unitholders of record as of November 7, 2025.
Current wording
Quarterly Distribution. On April 22, 2026, we declared a quarterly cash distribution of $0.005 per common unit for the first quarter of 2026, or $0.020 per common unit on an annualized basis, which will be paid on May 15, 2026 to unitholders of record as of May 8, 2026.
Previous 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.
Current wording
Martin Resource Management Corporation owns approximately 20.1% 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 $42.9 million of direct costs and expenses for the three months ended September 30, 2025, compared to $46.2 million for the three months ended September 30, 2024. We reimbursed Martin Resource Management Corporation for $126.8 million of direct costs and expenses for the nine months ended September 30, 2025, compared to $128.4 million for the nine months ended September 30, 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 $43.4 million of direct costs and expenses for the three months ended March 31, 2026, compared to $41.1 million for the three months ended March 31, 2025. 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 September 30, 2025 and 2024, the Conflicts Committee approved reimbursement amounts of $3.4 million. In each of the nine months ended September 30, 2025 and 2024, the Conflicts Committee approved reimbursement amounts of $10.2 million and $10.1 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.
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 March 31, 2026 and 2025, the Conflicts Committee approved reimbursement amounts of $3.2 million and $3.4 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
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 29% and 31% of our total costs and expenses during the three months ended September 30, 2025 and 2024, respectively. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 27% and 29% of our total costs and expenses during the nine months ended September 30, 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 26% and 25% of our total costs and expenses during the three months ended March 31, 2026 and 2025, respectively.
Previous 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, 2025 and 2024, respectively. Our sales to Martin Resource Management Corporation accounted for approximately 15% and 15% of our total revenues for the nine months ended September 30, 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 March 31, 2026 and 2025, 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 and nine months ended September 30, 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 months ended March 31, 2026 and 2025, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:
Previous wording
The results of operations for the three and nine months ended September 30, 2025 and 2024, have been derived from our consolidated and condensed financial statements.
Current wording
The results of operations for the three months ended March 31, 2026 and 2025, 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 nine months ended September 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.
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 months ended March 31, 2026 and 2025. 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 $0.3 million. Revenue at our underground storage terminal increased $0.4 million primarily as a result of higher storage volume of $1.4 million, offset by decreased throughput revenue of $1.0 million. Revenue at our Smackover refinery increased $0.4 million primarily as a result of increased reservation fess. Our shore-based terminals decreased $0.2 million due to decreased space rent of $0.4 million, offset by increased throughput revenue of $0.2 million. Revenue at our specialty terminals decreased $0.2 million primarily as a result of decreased service revenue, offset by an increase in storage revenue of $0.1 million.
Current wording
Revenues. Revenues increased $1.0 million. Revenue at our Smackover refinery increased $0.8 million primarily as a result of increases in natural gas surcharge revenue of $0.6 million, throughput revenue of $0.1 million, and reservation fees of $0.1 million. Revenue at our underground storage terminal increased $0.5 million primarily as a result of higher throughput fees of $0.6 million, offset by decreased reservation fees of $0.1 million. 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 decreased $0.1 million primarily as a result of decreased service revenue of $0.2 million, offset by an increase in throughput revenue of $0.1 million.
Previous wording
Revenues. Revenues decreased $14.7 million. In our marine transportation division, inland revenues decreased $6.7 million, primarily related to a decrease in utilization associated with weaker demand and downtime experienced from equipment repairs and regulatory inspections combined with lower transportation rates. Offshore revenues increased $1.6 million, primarily related to higher transportation rates and utilization. In our land transportation division, freight revenue decreased $7.0 million, primarily due to a 5% decrease in total miles. Ancillary revenue decreased $2.6 million.
Current wording
Revenues. Revenues decreased $0.7 million. In our marine transportation division, inland revenues increased $0.2 million, primarily related to an increase in utilization, offset by lower transportation rates. Offshore revenues decreased $0.7 million, primarily related to lower utilization associated with planned regulatory inspections combined with lower transportation rates. The offshore unit is expected to return to service during the second quarter. In our land transportation division, freight revenue decreased $0.2 million, primarily due to a 9% decrease in total miles, offset by a 14% increase in loads.
Previous wording
Operating expenses. The increase in operating expenses is primarily a result of lease expense of $3.1 million and insurance premiums of $2.0 million. Offsetting these increases were decreases in employee-related expenses of $2.4 million, repairs and maintenance of $1.2 million, pass-through expenses of $0.6 million and insurance claims of $0.6 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 wording
Operating expenses. The increase in operating expenses is primarily a result of lease expense of $1.2 million, insurance premiums of $0.5 million, insurance claims of $0.2 million, repairs and maintenance of $0.1 million, and pass-through expenses of $0.1 million. Offsetting these increases was a decrease in employee-related expenses of $0.6 million. The increase in lease expense is related to the replacement of tractors and trailers in our land transportation division.
Previous wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to a reduction in the allowance for uncollectible accounts receivable of $1.2 million and employee-related expenses of $0.7 million.
Current wording
Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to a reduction in the allowance for uncollectible accounts receivable.
Previous wording
Depreciation and amortization. Depreciation and amortization decreased as a result of capital expenditures offset by recent disposals.
Current wording
Depreciation and amortization. The increase in depreciation and amortization is primarily the result of capital expenditures, offset by asset disposals.
Previous wording
Services revenues. Services revenues increased $1.9 million largely associated with reservation fee 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 $0.1 million associated with reservation fee revenue from the DSM joint venture and $0.1 million as a result of a contractually prescribed, index-based fee adjustment.
Previous wording
Products revenues. Products revenues increased $28.0 million. Product Revenues increased by $32.0 million related to a 39% increase in sales volume, primarily a 47% increase in sulfur volumes, which increase was offset by a decrease of $4.0 million primarily due to a 5% reduction in average sulfur products sales prices.
Current wording
Products revenues. Products revenues increased $2.0 million. Product revenues increased by $3.0 million due to a 7% rise in average sulfur products sales prices, which increase was offset by a decrease of $1.0 million related to a 2% decrease in sales volume, primarily a 10% decrease in fertilizer volumes.
Previous wording
Cost of products sold. Cost of products sold increased $25.2 million. A 39% increase in sales volumes resulted in an increase in cost of products sold of $24.2 million. A 2% increase in product cost impacted cost of products sold by $1.0 million, resulting from higher commodity prices. Margin per ton decreased $10.89, or 20%.
Current wording
Cost of products sold. Cost of products sold increased $7.4 million. A 26% increase in product cost impacted cost of products sold by $8.4 million, resulting from higher commodity prices. A 2% reduction in sales volumes resulted in a decrease in cost of products sold of $1.0 million.
Previous wording
Operating expenses. Operating expenses increased $2.0 million due to $0.8 million in outside services, $0.4 million in marine operating expenses, $0.3 million in marine pass-through expenses, $0.2 million in repairs and maintenance, $0.1 million in insurance-related costs, $0.1 million in utilities, and $0.1 million in employment expenses.
Current wording
Operating expenses. Operating expenses decreased $0.8 million due to $0.5 million in outside services, $0.2 million in marine pass-through expenses, $0.1 million in other marine operating expense, and $0.1 million in repairs and maintenance, offset by a $0.1 million increase in insurance-related costs.
Previous wording
Products Revenues. Product revenues decreased by $8.7 million. A 5% rise in sales volumes increased revenue by $9.7 million, primarily driven by a 6% increase in NGL sales volumes. This was offset by a 9% decline in average specialty product sales prices, which reduced revenue by $18.5 million.
Current wording
Products Revenues. Product revenues decreased by $7.7 million. A 7% reduction in sales volumes decreased revenue by $4.8 million, primarily driven by an 11% decrease in NGL sales volumes. Additionally, a 4% decline in average specialty product sales prices reduced revenue by $2.9 million.
Previous wording
Cost of products sold. Cost of products sold decreased $5.7 million. A 5% increase in sales volumes resulted in an increase in cost of products sold of $8.8 million. An 8% decline in average product cost impacted cost of products sold by $14.5 million, resulting from reduced commodity prices. Our margins decreased $1.95 per barrel, or 19%, during the period.
Current wording
Cost of products sold. Cost of products sold decreased $7.8 million. A 7% decrease in sales volumes resulted in a decrease in cost of products sold of $4.3 million. A 6% decline in average product cost impacted cost of products sold by $3.5 million, resulting from reduced commodity prices. Our margins increased $0.86 per barrel, or 10%, during the period.
Previous wording
Indirect selling, general and administrative expenses increased for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, primarily due to transaction expenses associated with the terminated merger with Martin Resource Management Corporation.
Current wording
Indirect selling, general and administrative expenses decreased for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to the absence of $0.8 million in transaction expenses associated with the terminated merger with Martin Resource Management Corporation that were incurred in the first quarter of 2025, combined with lower compensation expense of $0.3 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 nine months ended September 30, 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 months ended March 31, 2026 and 2025:
Previous wording
Letters of Credit. At September 30, 2025, we had outstanding irrevocable letters of credit in the amount of $0.6 million, which were issued under our credit facility.
Current wording
Letters of Credit. At March 31, 2026, we had outstanding irrevocable letters of credit in the amount of $1.6 million, which were issued under our credit facility.
Previous wording
The following table details the cash flow changes between the nine months ended September 30, 2025 and 2024:
Current wording
The following table details the cash flow changes between the three months ended March 31, 2026 and 2025:
Previous wording
Net cash provided by operating activities. The increase in net cash provided by operating activities for the nine months ended September 30, 2025, includes a decrease in operating results and other non-cash charges of $14.6 million, offset by a favorable variance in cash flows associated with changes in working capital of $32.1 million.
Current wording
Net cash used in operating activities. The increase in net cash used in operating activities for the three months ended March 31, 2026, includes a decrease in operating results and other non-cash charges of $4.9 million, coupled with an increase in cash outflows associated with changes in working capital of $2.8 million.
Previous wording
Net cash used in investing activities. Net cash used in investing activities for the nine months ended September 30, 2025, decreased $27.2 million. A decrease in cash used of $19.8 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 $0.5 million.
Current wording
Net cash used in investing activities. Net cash used in investing activities for the three months ended March 31, 2026, increased $8.7 million. An increase in cash used of $8.6 million resulted from higher payments for capital expenditures and plant turnaround costs in 2026. Additionally, net proceeds from the sale of property, plant and equipment decreased $0.1 million.
Previous wording
Net cash (used in) provided by financing activities. Net cash provided by (used in) financing activities for the nine months ended September 30, 2025, decreased primarily as a result of an increase in repayments of long-term debt of $4.0 million, coupled with a decrease in borrowings of long-term debt of $40.1 million. Additionally, we incurred additional debt issuance costs of $0.7 million.
Current wording
Net cash provided by financing activities. Net cash provided by financing activities for the three months ended March 31, 2026, increased primarily as a result of an increase in borrowings of long-term debt of $26.5 million, offset by an increase in repayments of long-term debt of $10.0 million.
Previous wording
At September 30, 2025, we maintained a $130.0 million credit facility that matures on November 16, 2027. As of September 30, 2025, we had $53.5 million outstanding under the credit facility and $0.6 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 $75.9 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 $11.4 million in additional amounts thereunder as of September 30, 2025.
Current wording
At March 31, 2026, we maintained a $115.0 million credit facility that matures on November 16, 2027. As of March 31, 2026, we had $68.0 million outstanding under the credit facility and $1.6 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 $45.4 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 $37.5 million in additional amounts thereunder as of March 31, 2026.
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 September 30, 2025 ranged from a low of $41.0 million to a high of $87.0 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, 2026 through March 31, 2026 ranged from a low of $39.0 million to a high of $91.0 million.
Previous wording
The applicable margin for Adjusted Term SOFR borrowings at September 30, 2025 is 3.50%. The applicable margin for Adjusted Term SOFR borrowings effective October 15, 2025 is 3.75%.
Current wording
The applicable margin for SOFR borrowings and alternate base rate borrowings at March 31, 2026 is 3.75% and 2.75%, respectively. The applicable margin for SOFR borrowings and alternate base rate borrowings effective April 22, 2026, is 3.75% and 2.75%, respectively.
Previous wording
•decrease the amount available for us to borrow under the Credit Agreement on a revolving credit basis from $150.0 million to $130.0 million; and
Current wording
•decrease the amount available for the Partnership to borrow under the Credit Agreement on a revolving credit basis from $130.0 million to $115.0 million; and
Previous wording
▪require us to maintain a maximum Total Leverage Ratio (as defined in the Credit Agreement) of not more than 4.50 to 1.00 for the fiscal quarters ended March 31, 2025 and June 30, 2025, and stepping up to 4.75 to 1.00 for the fiscal quarter ending September 30, 2025 and each fiscal quarter thereafter; and
Current wording
◦require the Partnership to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of at least 1.65 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and December 31, 2026 and stepping up to 1.75 to 1.00 for the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter; and
Previous wording
▪require us to maintain a maximum Total Leverage Ratio (as defined in the Credit Agreement) of not more than 4.50 to 1.00 for the fiscal quarters ended March 31, 2025 and June 30, 2025, and stepping up to 4.75 to 1.00 for the fiscal quarter ending September 30, 2025 and each fiscal quarter thereafter; and
Current wording
◦require the Partnership to maintain a maximum Total Leverage Ratio (as defined in the Credit Agreement) of not more than 5.50 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and December 31, 2026, stepping down to 5.30 to 1.00 for the fiscal quarter ending March 31, 2027, stepping down to 5.25 to 1.00 for the fiscal quarter ending June 30, 2027, and further stepping down to 5.00 to 1.00 for the fiscal quarter ending September 30, 2027 and each fiscal quarter thereafter.
Previous wording
On September 30, 2025, we had cash and cash equivalents of $0.05 million and available borrowing capacity of $75.9 million under our credit facility with $53.5 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 $11.4 million in additional amounts thereunder as of September 30, 2025.
Current wording
On March 31, 2026, we had cash and cash equivalents of $0.05 million and available borrowing capacity of $45.4 million under our credit facility with $68.0 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 $37.5 million in additional amounts thereunder as of March 31, 2026.
Previous wording
A substantial portion of our revenues is dependent on sales prices of products, particularly NGLs and fertilizers, which fluctuate in part based on winter and spring weather conditions. The demand for NGLs is strongest during the winter heating season. The demand for fertilizers is strongest during the early spring planting season. However, our Terminalling and Storage and Transportation business segments and the molten sulfur business are typically not impacted by seasonal fluctuations and a significant portion of our net income is derived from our Terminalling and Storage, Sulfur Services and Transportation business segments. Further, extraordinary weather events, such as hurricanes, have in the past, and could in the future, impact our Terminalling and Storage, Sulfur Services, and Transportation business segments.
Current wording
A substantial portion of our revenues is dependent on the quantity and sales prices of products, particularly NGLs and fertilizers, which fluctuate in part based on winter and spring weather conditions. The demand for NGLs is strongest during the winter heating and blending season. The demand for fertilizers is strongest during the early spring planting season. However, our Terminalling and Storage and Transportation business segments and the molten sulfur business are typically not impacted by seasonal fluctuations and a significant portion of our net income is derived from our Terminalling and Storage, Sulfur Services and Transportation business segments. Further, extraordinary weather events, such as hurricanes, have in the past, and could in the future, impact all of our business segments.
Previous wording
Inflation did not have a material impact on our results of operations for the nine months ended September 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.
Current wording
Inflation did not have a material impact on our results of operations for the three months ended March 31, 2026 or 2025. 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.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
December 31, 2026 and stepping up to 1.75 to 1.00 for the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter; and
Current report — wording carried from elsewhere
Selling, general and administrative expenses. Selling, general and administrative expenses increased slightly, primarily due to higher employee-related expenses.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
Revenues. Revenues increased $1.4 million. Revenue at our underground storage terminal increased $1.4 million primarily as a result of increased storage volume. Revenue at our Smackover refinery increased $0.4 million primarily due to increases in throughput revenue and reservation fees. Revenue at our specialty terminals decreased $0.4 million, primarily as a result of decreased storage and service revenue. Our shore-based terminals decreased $0.2 million due to decreased space rent.
Previous report — wording carried elsewhere
Depreciation and amortization. The decrease in depreciation and amortization is primarily the result of assets being fully depreciated and disposals, offset by capital expenditures.
Previous report — wording carried elsewhere
Operating expenses. The increase in operating expenses is primarily a result of lease expense of $1.1 million and insurance premiums of $0.6 million. The increase in lease expense is related to the replacement of tractors and trailers in our land transportation division.
Previous report — wording carried elsewhere
Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to a reduction in the allowance for uncollectible accounts receivable of $0.6 million and higher employee-related expenses of $0.3 million.
Previous report — wording carried elsewhere
Services revenues. Services revenues increased $0.6 million largely associated with reservation fee revenue from the ELSA joint venture beginning in the fourth quarter of 2024. Additional increases were the result of a contractually prescribed, index-based fee adjustment.
Previous report — wording carried 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.
Previous report — wording carried elsewhere
Operating expenses. Operating expenses remained relatively consistent.
Previous report — wording carried elsewhere
Comparative Components of Interest Expense, Net for the Nine Months Ended September 30, 2025 and 2024
Previous report — wording carried elsewhere
Indirect selling, general and administrative expenses increased for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, primarily due to transaction expenses associated with the terminated merger with Martin Resource Management Corporation.
Previous report — wording carried elsewhere
▪require us to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of at least 1.75 to 1.00 for the fiscal quarter ended March 31, 2025 and each fiscal quarter thereafter;