• Hurricane Harvey Impact Estimated at $6.0 Million
  
• Quarterly Distribution Coverage Ratio Meets Internal Forecast
  
• Year to Date Distribution Coverage Ratio of 1.04x and Trailing Twelve Months Coverage Ratio of 1.27x

KILGORE, Texas, Oct. 25, 2017 (GLOBE NEWSWIRE) --  Martin Midstream Partners L.P. (Nasdaq:MMLP) (the "Partnership") announced today its financial results for the quarter ended September 30, 2017.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership said, “For the third quarter ended September 30, 2017, the Partnership generated a distribution coverage ratio of 0.51 times, matching our internal forecast.  Annually, the third quarter is our weakest, coinciding with seasonal troughs in the fertilizer and butane businesses.  Although cash flow from operations was below our guidance levels, so too was maintenance capital expenditures offsetting the impact to distributable cash flow thus, meeting our estimate.

“Highlighting the third quarter was continued strength in our Cardinal Gas Storage division where interruptible services remained stronger than forecasted.  Also, within the Natural Gas Services segment early season butane sales were above our expectations.  This was offset by lower throughput revenue within our Specialty Terminals division and weaker asset utilization in our Marine Transportation segment.

“During the third quarter, maintenance capital spending was lower than anticipated at approximately $5.2 million.  Accordingly, we are reducing our full year maintenance capital expenditure guidance to approximately $20 million.  Some scheduled fourth quarter maintenance capital expenditures will likely be preceded in priority by Hurricane Harvey related repairs and maintenance.  Generally speaking, the Partnership was fortunate to have weathered the impact of storm damage from Hurricane Harvey with only modest disruption.  Of the utmost importance was the safety of our employees and their families and we were very fortunate on that front.  Pertaining to the financial impact and condition of our assets, we estimate the storm will have an approximate $6.0 million negative impact to our business.  This estimate includes total expenses to repair damaged assets affecting cash flow in the third quarter, fourth quarter and first quarter 2018 of $1.0 million, $3.5 million, and $0.4 million, respectively, in addition to the impact of business interruption of approximately $1.1 million in the third quarter 2017.  Because we incurred storm damage at multiple locations, we will not be filing an insurance claim associated with these interruptions and repair expenditures.  In essence, each location’s damage was in an amount below the deductible for that specific location.

“As expected during the third quarter, our debt level rose based on working capital increases of approximately $45 million in our Natural Gas Services segment primarily attributed to our butane inventory build.  Based on current market conditions, we anticipate a strong butane sales season during the fourth quarter 2017 and first quarter 2018.  Looking ahead, we should realize significant working capital debt reduction due to butane inventory depletion, reducing the Partnership’s leverage over the next two quarters.”

The Partnership had a net loss for the third quarter 2017 of $16.3 million, a loss of $0.42 per limited partner unit.  This loss includes the effects of estimated hurricane repair costs of $4.9 million and the expense associated with the upward revision of asset retirement obligations of $5.5 million.  The Partnership had a net loss for the third quarter 2016 of $0.9 million, a loss of $0.03 per limited partner unit.  The Partnership's adjusted EBITDA for the third quarter 2017 was $27.1 million compared to adjusted EBITDA from for the third quarter 2016 of $33.3 million.

The Partnership had a net loss for the nine months ended September 30, 2017 of $1.7 million, a loss of $0.04 per limited partner unit.  The Partnership had net income for the nine months ended September 30, 2016 of $13.8 million, or $0.16 per limited partner unit.  The Partnership's adjusted EBITDA for the nine months ended September 30, 2017 was $106.9 million compared to adjusted EBITDA for the nine months ended September 30, 2016 of $124.2 million.

The Partnership's distributable cash flow for the third quarter 2017 was $9.9 million compared to distributable cash flow for the third quarter 2016 of $19.9 million.

The Partnership's distributable cash flow for the nine months ended September 30, 2017 was $59.8 million compared to distributable cash flow for the nine months ended September 30, 2016 of $77.9 million.

Revenues for the third quarter 2017 were $193.1 million compared to the third quarter 2016 of $174.5 million. Revenues for the nine months ended  September 30, 2017 were $640.4 million compared to the nine months ended September 30, 2016 of $590.5 million.

Distributable cash flow, EBITDA and adjusted EBITDA are non-GAAP financial measures which are explained in greater detail below under the heading "Use of Non-GAAP Financial Information." The Partnership has also included below a table entitled "Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow" in order to show the components of these non-GAAP financial measures and their reconciliation to the most comparable GAAP measurement.

Included with this press release are the Partnership's consolidated and condensed financial statements as of and for the three and nine months ended September 30, 2017 and certain prior periods.  These financial statements should be read in conjunction with the information contained in the Partnership's Quarterly Report on Form 10-Q, to be filed with the Securities and Exchange Commission on October 25, 2017.

An attachment accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0ff92a73-c811-4f59-8574-a85c689ef18c.

Investors' Conference Call

An investors’ conference call to review the third quarter results will be held on Thursday, October 26, 2017, at 8:00 a.m. Central Time.  The conference call can be accessed by calling (877) 878-2695.  An audio replay of the conference call will be available by calling (855) 859-2056 from 11:00 a.m. Central Time on October 26, 2017 through 10:59 p.m. Central Time on November 6, 2017.  The access code for the conference call and the audio replay is Conference ID No. 98725323.  The audio replay of the conference call will also be archived on Martin Midstream Partners’ website at www.martinmidstream.com. 

About Martin Midstream Partners
           
The Partnership is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business segments include: (1) terminalling, storage and packaging services for petroleum products and by-products; (2) natural gas services, including liquids transportation and distribution services and natural gas storage; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) marine transportation services for petroleum products and by-products.

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 and other factors, many of which are outside the Partnership's 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 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.

Use of Non-GAAP Financial Information

The Partnership's management uses a variety of financial and operational measurements other than its financial statements prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) to analyze its performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization (“EBITDA”), (2) adjusted EBITDA and (3) distributable cash flow.  The Partnership's management views these measures as important performance measures of core profitability for its operations and the ability to generate and distribute cash flow, and as key components of its internal financial reporting. The Partnership's management believes investors benefit from having access to the same financial measures that management uses.

EBITDA and Adjusted EBITDA.  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. The Partnership has included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of the Partnership's assets without regard to financing methods, capital structure or historical cost basis; the Partnership's operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects.  The Partnership's method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind the Partnership's use of adjusted EBITDA is to measure the ability of the Partnership's assets to generate cash sufficient to pay interest costs, support its indebtedness and make distributions to its unitholders.

Distributable Cash Flow.  Distributable cash flow is a significant performance measure used by the Partnership's management and by external users of its financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by the Partnership to the cash distributions it expects to pay unitholders.  Distributable cash flow is also an important financial measure for the Partnership's unitholders since it serves as an indicator of the Partnership's success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not the Partnership is generating cash flow at a level that can sustain or support an increase in its 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.

EBITDA, adjusted EBITDA and distributable cash flow should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with GAAP. The Partnership's method of computing these measures may not be the same method used to compute similar measures reported by other entities.

Additional information concerning the Partnership is available on the Partnership's website at www.martinmidstream.com or by contacting:

Joe McCreery, IRC - Vice President - Finance & Head of Investor Relations
(903) 988-6425

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)
		September 30, 2017				December 31, 2016
		(Unaudited)				(Audited)
Assets
Cash		$	15			$	15
Accounts and other receivables, less allowance for doubtful accounts of $319 and $372, respectively		64,127				80,508
Product exchange receivables		34				207
Inventories		130,618				82,631
Due from affiliates		13,484				11,567
Fair value of derivatives		133				—
Other current assets		3,703				3,296
Assets held for sale		13,764				15,779
Total current assets		225,878				194,003
Property, plant and equipment, at cost		1,248,093				1,224,277
Accumulated depreciation		(408,426		)		(378,593		)
Property, plant and equipment, net		839,667				845,684
Goodwill		17,296				17,296
Investment in WTLPG		127,998				129,506
Note receivable - affiliate		—				15,000
Other assets, net		37,211				44,874
Total assets		$	1,248,050			$	1,246,363
Liabilities and Partners’ Capital
Trade and other accounts payable		$	72,019			$	70,249
Product exchange payables		9,270				7,360
Due to affiliates		3,305				8,474
Income taxes payable		450				870
Fair value of derivatives		—				3,904
Other accrued liabilities		25,710				26,717
Total current liabilities		110,754				117,574
Long-term debt, net		829,991				808,107
Other long-term obligations		8,425				8,676
Total liabilities		949,170				934,357
Commitments and contingencies (Note 17)
Partners’ capital		298,880				312,006
Total partners’ capital		298,880				312,006
Total liabilities and partners' capital		$	1,248,050			$	1,246,363

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 25, 2017.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2017				2016				2017				2016
Revenues:
Terminalling and storage *		$	25,752			$	30,770			$	75,105			$	93,565
Marine transportation *		11,407				13,846				36,661				44,531
Natural gas services*		14,253				14,618				43,756				46,118
Sulfur services		2,850				2,700				8,550				8,100
Product sales: *
Natural gas services		83,831				57,378				284,154				207,368
Sulfur services		24,174				26,396				95,728				105,459
Terminalling and storage		30,861				28,829				96,421				85,349
		138,866				112,603				476,303				398,176
Total revenues		193,128				174,537				640,375				590,490
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas services *		77,368				50,658				255,745				184,781
Sulfur services *		19,716				21,510				65,406				73,734
Terminalling and storage *		25,852				23,540				80,312				70,306
		122,936				95,708				401,463				328,821
Expenses:
Operating expenses *		45,072				39,488				114,564				121,542
Selling, general and administrative *		9,131				8,049				27,961				24,364
Loss on impairment of goodwill		—				—				—				4,145
Depreciation and amortization		20,286				22,129				65,948				66,266
Total costs and expenses		197,425				165,374				609,936				545,138
Other operating income (loss)		(187		)		13				(327		)		(1,582		)
Operating income (loss)		(4,484		)		9,176				30,112				43,770
Other income (expense):
Equity in earnings of WTLPG		789				1,120				2,547				3,602
Interest expense, net		(12,538		)		(11,779		)		(34,677		)		(34,046		)
Other, net		55				730				605				866
Total other expense		(11,694		)		(9,929		)		(31,525		)		(29,578		)
Net income (loss) before taxes		(16,178		)		(753		)		(1,413		)		14,192
Income tax expense		(108		)		(180		)		(301		)		(422		)
Net income (loss)		(16,286		)		(933		)		(1,714		)		13,770
Less general partner's interest in net income (loss)		325				18				34				(8,062		)
Less (income) loss allocable to unvested restricted units		38				3				—				(36		)
Limited partners' interest in net income (loss)		$	(15,923	)		$	(912	)		$	(1,680	)		$	5,672
Net income (loss) per unit attributable to limited partners - basic		$	(0.42	)		$	(0.03	)		$	(0.04	)		$	0.16
Net income (loss) per unit attributable to limited partners - diluted		$	(0.42	)		$	(0.03	)		$	(0.04	)		$	0.16
Weighted average limited partner units - basic		38,357				35,346				38,016				35,358
Weighted average limited partner units - diluted		38,357				35,346				38,016				35,381

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 25, 2017.

*Related Party Transactions Shown Below 

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per unit amounts)
*Related Party Transactions Included Above
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2017				2016				2017				2016
Revenues:*
Terminalling and storage		$	21,910			$	20,649			$	61,945			$	62,197
Marine transportation		4,098				4,861				12,610				17,308
Natural gas services		4				132				122				574
Product Sales		828				723				2,982				2,391
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Natural gas services		3,033				2,946				14,836				10,829
Sulfur services		3,555				3,678				10,997				11,300
Terminalling and storage		4,817				3,766				14,003				11,232
Expenses:
Operating expenses		15,858				17,810				48,686				53,255
Selling, general and administrative		6,495				5,748				20,563				18,091

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 25, 2017.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Dollars in thousands)
		Partners’ Capital
		Common Limited							General Partner Amount
		Units			Amount								Total
Balances - January 1, 2016		35,456,612			$	380,845			$	13,034			$	393,879
Net income		—			5,708				8,062				13,770
Issuance of common units, net		—			(28		)		—				(28		)
Issuance of restricted units		13,800			—				—				—
Forfeiture of restricted units		(500	)		—				—				—
Cash distributions		—			(86,410		)		(13,680		)		(100,090		)
Reimbursement of excess purchase price over carrying value of acquired assets		—			3,000				—				3,000
Unit-based compensation		—			712				—				712
Purchase of treasury units		(15,200	)		(330		)		—				(330		)
Balances - September 30, 2016		35,454,712			$	303,497			$	7,416			$	310,913
Balances - January 1, 2017		35,452,062			$	304,594			$	7,412			$	312,006
Net loss		—			(1,680		)		(34		)		(1,714		)
Issuance of common units, net of issuance related costs		2,990,000			51,061				—				51,061
Issuance of restricted units		12,000			—				—				—
Forfeiture of restricted units		(5,750	)		—				—				—
General partner contribution		—			—				1,098				1,098
Cash distributions		—			(56,177		)		(1,146		)		(57,323		)
Unit-based compensation		—			518				—				518
Excess purchase price over carrying value of acquired assets		—			(7,887		)		—				(7,887		)
Reimbursement of excess purchase price over carrying value of acquired assets		—			1,125				—				1,125
Purchase of treasury units		(200	)		(4		)		—				(4		)
Balances - September 30, 2017		38,448,112			$	291,550			$	7,330			$	298,880

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 25, 2017.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
		Nine Months Ended
		September 30,
		2017				2016
Cash flows from operating activities:
Net income (loss)		$	(1,714	)		$	13,770
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		65,948				66,266
Amortization of deferred debt issuance costs		2,170				2,965
Amortization of premium on notes payable		(230		)		(230		)
Loss on sale of property, plant and equipment		327				1,582
Loss on impairment of goodwill		—				4,145
Equity in earnings of WTLPG		(2,547		)		(3,602		)
Derivative (income) loss		2,392				(1,867		)
Net cash (paid) received for commodity derivatives		(6,429		)		1,666
Net cash received for interest rate derivatives		—				160
Net premiums received on derivatives that settled during the year on interest rate swaption contracts		—				630
Unit-based compensation		518				712
Cash distributions from WTLPG		4,200				6,100
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables		16,381				28,028
Product exchange receivables		173				891
Inventories		(48,022		)		(31,606		)
Due from affiliates		(1,917		)		1,932
Other current assets		(411		)		(4,693		)
Trade and other accounts payable		2,222				(15,782		)
Product exchange payables		1,910				(2,544		)
Due to affiliates		(5,169		)		(1,859		)
Income taxes payable		(420		)		(435		)
Other accrued liabilities		(3,766		)		(3,729		)
Change in other non-current assets and liabilities		1,941				(765		)
Net cash provided by operating activities		27,557				61,735
Cash flows from investing activities:
Payments for property, plant and equipment		(30,014		)		(31,884		)
Acquisitions		(19,533		)		—
Acquisition of intangible assets		—				(2,150		)
Payments for plant turnaround costs		(1,583		)		(1,614		)
Proceeds from sale of property, plant and equipment		1,604				2,174
Proceeds from involuntary conversion of property, plant and equipment		—				23,400
Proceeds from repayment of Note receivable - affiliate		15,000				—
Contributions to WTLPG		(145		)		—
Other		(900		)		—
Net cash used in investing activities		(35,571		)		(10,074		)
Cash flows from financing activities:
Payments of long-term debt		(242,000		)		(219,700		)
Proceeds from long-term debt		262,000				270,700
Proceeds from issuance of common units, net of issuance related costs		51,061				(28		)
General partner contribution		1,098				—
Purchase of treasury units		(4		)		(330		)
Payment of debt issuance costs		(56		)		(5,234		)
Excess purchase price over carrying value of acquired assets		(7,887		)		—
Reimbursement of excess purchase price over carrying value of acquired assets		1,125				3,000
Cash distributions paid		(57,323		)		(100,090		)
Net cash provided by (used in) financing activities		8,014				(51,682		)
Net increase (decrease) in cash		—				(21		)
Cash at beginning of period		15				31
Cash at end of period		$	15			$	10
Non-cash additions to property, plant and equipment		$	1,367			$	1,068

These financial statements should be read in conjunction with the financial statements and the accompanying notes and other information included in the Partnership's Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on October 25, 2017.

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Terminalling and Storage Segment
Comparative Results of Operations for the Three Months Ended September 30, 2017 and 2016
		Three Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands, except BBL per day)
Revenues:
Services		$	26,944			$	32,114			$	(5,170	)		(16	)%
Products		30,861				28,829				2,032				7	%
Total revenues		57,805				60,943				(3,138		)		(5	)%
Cost of products sold		26,451				24,118				2,333				10	%
Operating expenses		25,762				18,299				7,463				41	%
Selling, general and administrative expenses		1,668				1,439				229				16	%
Depreciation and amortization		10,192				10,828				(636		)		(6	)%
		(6,268		)		6,259				(12,527		)		(200	)%
Other operating income (loss)		(187		)		254				(441		)		(174	)%
Operating income (loss)		$	(6,455	)		$	6,513			$	(12,968	)		(199	)%
Lubricant sales volumes (gallons)		5,217				5,196				21				—	%
Shore-based throughput volumes (guaranteed minimum) (gallons)		41,666				50,000				(8,334		)		(17	)%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)		6,500				6,500				—				—	%
Corpus Christi crude terminal (BBL per day)		—				65,116				(65,116		)		(100	)%

Comparative Results of Operations for the Nine Months Ended September 30, 2017 and 2016
		Nine Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands, except BBL per day)
Revenues:
Services		$	79,523			$	97,663			$	(18,140	)		(19	)%
Products		96,421				85,351				11,070				13	%
Total revenues		175,944				183,014				(7,070		)		(4	)%
Cost of products sold		82,053				71,939				10,114				14	%
Operating expenses		56,488				54,740				1,748				3	%
Selling, general and administrative expenses		4,437				3,546				891				25	%
Depreciation and amortization		35,996				30,904				5,092				16	%
		(3,030		)		21,885				(24,915		)		(114	)%
Other operating income (loss)		(190		)		354				(544		)		(154	)%
Operating income (loss)		$	(3,220	)		$	22,239			$	(25,459	)		(114	)%
Lubricant sales volumes (gallons)		15,912				15,536				376				2	%
Shore-based throughput volumes (guaranteed minimum) (gallons)		124,998				150,000				(25,002		)		(17	)%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)		6,500				6,500				—				—	%
Corpus Christi crude terminal (BBL per day)		—				77,394				(77,394		)		(100	)%

Natural Gas Services Segment
Comparative Results of Operations for the Three Months Ended September 30, 2017 and 2016
		Three Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands)
Revenues:
Services		$	14,253			$	14,618			$	(365	)		(2	)%
Products		84,057				57,378				26,679				46	%
Total revenues		98,310				71,996				26,314				37	%
Cost of products sold		78,138				51,353				26,785				52	%
Operating expenses		5,528				5,822				(294		)		(5	)%
Selling, general and administrative expenses		1,889				1,309				580				44	%
Depreciation and amortization		6,274				7,050				(776		)		(11	)%
		6,481				6,462				19				—	%
Other operating income (loss)		2				(7		)		9				(129	)%
Operating income		$	6,483			$	6,455			$	28			—	%
Distributions from WTLPG		$	1,700			$	1,800			$	(100	)		(6	)%
NGL sales volumes (Bbls)		1,943				1,592				351				22	%

Comparative Results of Operations for the Nine Months Ended September 30, 2017 and 2016
		Nine Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands)
Revenues:
Services		$	43,756			$	46,118			$	(2,362	)		(5	)%
Products		284,380				207,368				77,012				37	%
Total revenues		328,136				253,486				74,650				29	%
Cost of products sold		258,444				186,934				71,510				38	%
Operating expenses		16,753				17,479				(726		)		(4	)%
Selling, general and administrative expenses		7,055				5,420				1,635				30	%
Depreciation and amortization		18,640				21,007				(2,367		)		(11	)%
		27,244				22,646				4,598				20	%
Other operating income (loss)		7				(103		)		110				(107	)%
Operating income		$	27,251			$	22,543			$	4,708			21	%
Distributions from WTLPG		$	4,200			$	6,100			$	(1,900	)		(31	)%
NGL sales volumes (Bbls)		6,547				6,520				27				—	%

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Sulfur Services Segment
Comparative Results of Operations for the Three Months Ended September 30, 2017 and 2016
		Three Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands)
Revenues:
Services		$	2,850			$	2,700			$	150			6	%
Products		24,174				26,396				(2,222		)		(8	)%
Total revenues		27,024				29,096				(2,072		)		(7	)%
Cost of products sold		19,807				21,601				(1,794		)		(8	)%
Operating expenses		3,557				4,089				(532		)		(13	)%
Selling, general and administrative expenses		1,071				946				125				13	%
Depreciation and amortization		2,020				1,997				23				1	%
		569				463				106				23	%
Other operating loss		(2		)		(234		)		232				(99	)%
Operating income		$	567			$	229			$	338			148	%
Sulfur (long tons)		198				241				(43		)		(18	)%
Fertilizer (long tons)		52				47				5				11	%
Total sulfur services volumes (long tons)		250				288				(38		)		(13	)%

Comparative Results of Operations for the Nine Months Ended September 30, 2017 and 2016
		Nine Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands)
Revenues:
Services		$	8,550			$	8,100			$	450			6	%
Products		95,728				105,459				(9,731		)		(9	)%
Total revenues		104,278				113,559				(9,281		)		(8	)%
Cost of products sold		65,678				74,006				(8,328		)		(11	)%
Operating expenses		10,221				10,288				(67		)		(1	)%
Selling, general and administrative expenses		3,099				2,834				265				9	%
Depreciation and amortization		6,083				5,978				105				2	%
		19,197				20,453				(1,256		)		(6	)%
Other operating loss		(24		)		(266		)		242				(91	)%
Operating income		$	19,173			$	20,187			$	(1,014	)		(5	)%
Sulfur (long tons)		607				579				28				5	%
Fertilizer (long tons)		217				217				—				—	%
Total sulfur services volumes (long tons)		824				796				28				4	%

MARTIN MIDSTREAM PARTNERS L.P.
SEGMENT OPERATING INCOME
(Dollars and volumes in thousands, except BBL per day)
Marine Transportation Segment
Comparative Results of Operations for the Three Months Ended September 30, 2017 and 2016
		Three Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands)
Revenues		$	12,400			$	14,920			$	(2,520	)		(17	)%
Operating expenses		11,176				12,332				(1,156		)		(9	)%
Selling, general and administrative expenses		112				149				(37		)		(25	)%
Depreciation and amortization		1,800				2,254				(454		)		(20	)%
Operating income (loss)		$	(688	)		$	185			$	(873	)		(472	)%

Comparative Results of Operations for the Nine Months Ended September 30, 2017 and 2016
		Nine Months Ended September 30,								Variance				Percent Change
		2017				2016
		(In thousands)
Revenues		$	38,958			$	46,854			$	(7,896	)		(17	)%
Operating expenses		33,331				41,400				(8,069		)		(19	)%
Selling, general and administrative expenses		287				(112		)		399				(356	)%
Loss on impairment of goodwill		—				4,145				(4,145		)		(100	)%
Depreciation and amortization		5,229				8,377				(3,148		)		(38	)%
		$	111			$	(6,956	)		$	7,067			(102	)%
Other operating loss		(120		)		(1,567		)		1,447				(92	)%
Operating loss		$	(9	)		$	(8,523	)		$	8,514			(100	)%

Non-GAAP Financial Measures

The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and nine months ended September 30, 2017 and 2016, which represents EBITDA, Adjusted EBITDA and Distributable Cash Flow.

Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2017				2016				2017				2016
	(in thousands)
Net income (loss)	$	(16,286	)		$	(933	)		$	(1,714	)		$	13,770
Adjustments:
Interest expense, net	12,538				11,779				34,677				34,046
Income tax expense	108				180				301				422
Depreciation and amortization	20,286				22,129				65,948				66,266
EBITDA	16,646				33,155				99,212				114,504
Adjustments:
Equity in earnings of WTLPG	(789		)		(1,120		)		(2,547		)		(3,602		)
(Gain) loss on sale of property, plant and equipment	187				(13		)		327				1,582
Loss on impairment of goodwill	—				—				—				4,145
Unrealized mark-to-market on commodity derivatives	—				(742		)		(4,037		)		795
Hurricane damage repair accrual	3,725				—				3,725				—
Asset retirement obligation revision	5,547				—				5,547				—
Distributions from WTLPG	1,700				1,800				4,200				6,100
Unit-based compensation	113				226				518				712
Adjusted EBITDA	27,129				33,306				106,945				124,236
Adjustments:
Interest expense, net	(12,538		)		(11,779		)		(34,677		)		(34,046		)
Income tax expense	(108		)		(180		)		(301		)		(422		)
Amortization of debt premium	(77		)		(77		)		(230		)		(230		)
Amortization of deferred debt issuance costs	725				718				2,170				2,965
Non-cash mark-to-market on interest rate derivatives	—				—				—				(206		)
Payments for plant turnaround costs	8				(430		)		(1,583		)		(1,614		)
Maintenance capital expenditures	(5,208		)		(1,609		)		(12,494		)		(12,818		)
Distributable Cash Flow	$	9,931			$	19,949			$	59,830			$	77,865

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