Martin Midstream Partners Reports First Quarter 2026 Financial Results and Declares Quarterly Cash Distribution

• Net loss of $6.8 million for the first quarter of 2026, compared to a net loss of $1.0 million for the same period in 2025
• Adjusted EBITDA of $20.8 million for the first quarter of 2026, compared to Adjusted EBITDA of $27.8 million for the same period in 2025
• Revises full year Adjusted EBITDA guidance downward to $90.0 million
• Declares quarterly cash dividend of $0.005 per common unit

Martin Midstream Partners L.P. (NASDAQ:MMLP) ("MMLP" or the "Partnership") today announced its financial results for the first quarter of 2026.

Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, stated, "For the first quarter of 2026, the Partnership generated Adjusted EBITDA of $20.8 million, short of the pace needed to achieve our full-year guidance. Two primary headwinds impacted the quarter: meaningful margin pressure in our fertilizer business and lower than anticipated contribution by the transportation business. As a result, we are revising our full-year 2026 Adjusted EBITDA guidance downward to $90.0 million."

"Our Terminalling and Storage and Specialty Products segments performed in line with our internal expectations for the quarter, and we expect both segments to achieve their full-year guidance targets."

"In our Sulfur Services segment, first quarter 2026 results were negatively impacted in the fertilizer business, as elevated input costs, primarily sulfur and ammonia, and weak farmer affordability continue to impact fertilizer products. Strong performance from our pure sulfur business partially offset the fertilizer shortfall, and we expect this business to achieve its full-year guidance target. However, we do not expect fertilizer market conditions to meaningfully improve over the balance of the year, and we have adjusted our guidance for the fertilizer business line accordingly."

"In our Transportation Services segment, demand remained strong during the first quarter of 2026 for both our marine and land divisions. However, in the land transportation business, customer demand is outpacing our current driver capacity. The inability to hire and retain additional certified tank truck drivers negatively impacted our trucking revenues in the first quarter and continues to be a challenge across the overall trucking industry. Given this driver capacity constraint, we are reducing our guidance for this business line. The inland marine equipment performed in line with expectations and our offshore equipment experienced reduced utilization from planned downtime due to regulatory inspections that were advanced into the first quarter. We anticipate the marine division will perform as expected for the year."

"During the quarter, we amended our revolving credit facility, providing the Partnership with additional covenant flexibility as we navigate through the current environment. As of March 31, 2026, total debt outstanding was approximately $468.0 million, liquidity under our revolving credit facility was approximately $37.5 million, and our leverage ratio was 5.08 times based on Credit Adjusted EBITDA."

Transportation Adjusted EBITDA decreased by $2.0 million. In the land division, Adjusted EBITDA declined by $0.8 million, primarily due to lower miles and reduced transportation rates combined with higher operating expenses. In the marine division, Adjusted EBITDA decreased by $1.2 million. Offshore Adjusted EBITDA declined $0.9 million, driven by 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. Inland Adjusted EBITDA declined $0.1 million, driven by lower day rates, partially offset by higher utilization. Additionally, the marine division saw an increase in operating expenses of $0.2 million.

Terminalling and Storage Adjusted EBITDA decreased by $0.6 million. At our Smackover refinery, Adjusted EBITDA declined by $0.4 million as a result of higher operating expenses, partially offset by increased throughput and reservation fees. In our specialty terminals division, Adjusted EBITDA declined by $0.4 million due to lower service revenue combined with higher operating expenses. Adjusted EBITDA in our shore-based terminals division decreased $0.2 million due to lower service revenue, partially offset by higher throughput fees combined with lower operating expenses. In the underground NGL storage division, Adjusted EBITDA increased by $0.4 million due to increased throughput revenue, partially offset by a slight increase in expenses.

Sulfur Services Adjusted EBITDA decreased by $4.7 million. In the fertilizer division, Adjusted EBITDA decreased by $5.4 million from margin pressure associated with rapidly rising raw material costs combined with lower volume. In the pure sulfur business, Adjusted EBITDA increased by $0.4 million due to lower operating expenses, partially offset by reduced margins. In the sulfur prilling business, Adjusted EBITDA increased by $0.3 million due to increased reservation fees.

Specialty Products Adjusted EBITDA decreased by $0.2 million. Adjusted EBITDA for the lubricants division increased by $1.0 million, reflecting increases in volume and margins. In the grease division, Adjusted EBITDA decreased by $1.1 million, primarily due to reduced volumes and margins. Adjusted EBITDA in the propane division decreased by $0.4 million due to lower volumes. The NGL division increased by $0.2 million, reflecting higher margins.

Indirect selling, general, and administrative expenses decreased by $0.4 million, primarily due to lower employee-related expenses.

NON-GAAP FINANCIAL MEASURES

EBITDA, Adjusted EBITDA, Credit Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included tables below entitled "Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA" and "Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.

An attachment included in the Current Report on Form 8-K to which this announcement is included contains a comparison of the Partnership's Adjusted EBITDA for the first quarter of 2026 to the Partnership's Adjusted EBITDA for the first quarter of 2025.

QUARTERLY CASH DISTRIBUTION

The Partnership has declared a quarterly cash distribution of $0.005 per unit for the quarter ended March 31, 2026. The distribution is payable on May 15, 2026, to common unitholders of record as of the close of business on May 8, 2026. The ex-dividend date for the cash distribution is May 8, 2026.

Qualified Notice to Nominees

This release is intended to serve as qualified notice under Treasury Regulation Section 1.1446-4(b)(4) and (d). Brokers and nominees should treat one hundred percent (100%) of MMLP's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, MMLP's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate. For purposes of Treasury Regulation section 1.1446(f)-4(c)(2)(iii), brokers and nominees should treat one hundred percent (100%) of the distributions as being in excess of cumulative net income for purposes of determining the amount to withhold. Nominees, and not Martin Midstream Partners L.P., are treated as withholding agents responsible for any necessary withholding on amounts received by them on behalf of foreign investors.

About Martin Midstream Partners

Martin Midstream Partners L.P., headquartered in Kilgore, Texas, is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the United States. MMLP's primary business lines include: (1) terminalling, processing, and storage services for petroleum products and by-products; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marketing, distribution, and transportation services for natural gas liquids and blending and packaging services for specialty lubricants and grease. To learn more, visit www.MMLP.com. Follow Martin Midstream Partners L.P. on LinkedIn and Facebook.

Forward-Looking Statements

Statements about the Partnership's outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties, including (i) the effects of the continued volatility of commodity prices and the related macroeconomic and political environment, (ii) uncertainties relating to the Partnership's future cash flows and operations, (iii) the Partnership's ability to pay future distributions, (iv) future market conditions, (v) current and future governmental regulation, (vi) future taxation, (vii) our expectation around the achievement of the amounts reflected in our guidance, and (viii) other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While the Partnership believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Partnership's annual and quarterly reports filed from time to time with the Securities and Exchange Commission (the "SEC"). The Partnership disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise except where required to do so by law.

Use of Non-GAAP Financial Information

To assist management in assessing our business, we use the following non-GAAP financial measures: earnings before interest, taxes, and depreciation and amortization ("EBITDA"), Adjusted EBITDA (as defined below), 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.

Certain items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets.

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, transaction costs associated with business combination, merger, and divestiture activities, equity in earnings (loss) from unconsolidated entities, and non-cash contractual revenue deferral 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:

• the financial performance of our assets without regard to financing methods, capital structure, or historical cost basis;
• the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness, and make cash distributions to our unitholders; and
• our operating performance and return on capital as compared to those of other companies in the midstream energy sector, without regard to financing methods or capital structure.

We define Credit Adjusted EBITDA as Adjusted EBITDA plus pro forma adjustments associated with business combinations or material projects and capitalized interest. 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.

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.

Adjusted EBITDA does not include interest expense, income tax expense, and depreciation and amortization. Because we have borrowed money to finance our operations, interest expense is a necessary element of our costs and our ability to generate cash available for distribution. Because we have capital assets, depreciation and amortization are also necessary elements of our costs. Therefore, any measures that exclude these elements have material limitations. To compensate for these limitations, we believe that it is important to consider Net Income (Loss) and Net Cash Provided by (Used in) Operating Activities as determined under GAAP, as well as Adjusted EBITDA, to evaluate our overall performance.

Distributable Cash Flow. We define Distributable Cash Flow as Net Cash Provided by (Used in) Operating Activities less cash received (plus cash paid) for closed commodity derivative positions included in Accumulated Other Comprehensive Income (Loss), plus changes in operating assets and liabilities which (provided) used cash, less maintenance capital expenditures and plant turnaround costs. Distributable Cash Flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions we expect to pay unitholders. Distributable Cash Flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Distributable Cash Flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.

Adjusted Free Cash Flow. We define Adjusted Free Cash Flow as Distributable Cash Flow less growth capital expenditures and principal payments under finance lease obligations. Adjusted Free Cash Flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that Adjusted Free Cash Flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of Adjusted Free Cash Flow may or may not be comparable to similarly titled measures used by other entities.

The GAAP measure most directly comparable to Distributable Cash Flow and Adjusted Free Cash Flow is Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow should not be considered alternatives to, or more meaningful than, Net Income (Loss), Operating Income (Loss), Net Cash Provided by (Used in) Operating Activities, or any other measure of liquidity presented in accordance with GAAP. Distributable Cash Flow and Adjusted Free Cash Flow have important limitations because they exclude some items that affect Net Income (Loss), Operating Income (Loss), and Net Cash Provided by (Used in) Operating Activities. Distributable Cash Flow and Adjusted Free Cash Flow may not be comparable to similarly titled measures of other companies because other companies may not calculate these non-GAAP metrics in the same manner. To compensate for these limitations, we believe that it is important to consider Net Cash Provided by (Used in) Operating Activities determined under GAAP, as well as Distributable Cash Flow and Adjusted Free Cash Flow, to evaluate our overall liquidity.

MMLP-F

Non-GAAP Financial Measures

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended March 31, 2026 and 2025, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:

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Danny Cavin - Director, FP&A and Investor Relations