Martin Midstream reports jump in earnings
From Staff Reports
May 6, 2013 at 11 p.m.
Kilgore-based Martin Midstream Partners L.P. said Monday it generated record cash flow while achieving a 33 percent increase in net income during the first quarter.
Earnings per limited partner unit jumped more than 56 percent.
Business was strong across most segments, said Ruben Martin, president and CEO.
For the three months ending March 31, the limited partnership had net income of $16.6 million, or 61 cents per limited partner unit. That was up from $12.5 million, or 39 cents per limited partner unit, a year ago.
Revenues rose nearly 25 percent, to $433.7 million from $348.3 million a year ago.
"This included strong performance in the wholesale butane division of our Natural Gas Services segment," Martin said. "The market remained strong as the gasoline blending season carried over from the fourth quarter. In our Sulfur Services segment, we benefited from another strong quarter from our fertilizer division."
Distributable cash flow for the quarter was $28.9 million, which Martin said was a record.
The company also described progress at its Corpus Christi crude oil terminal facility.
"The first quarter 2013 was the first full operational quarter under contract," Martin said. "Throughput to date at the terminal has exceeded plan on the first six tanks and generated strong cash flow. Currently, we are making progress securing a contract for the final 300,000 barrels of storage for which construction will commence soon."
He said the additional storage was expected to be operational early next year.
Also during the first quarter, Martin Midstream completed its largest financing transaction, closing on a $600 million credit facility.
"Our new credit facility provides ample liquidity to enable us to continue our growth initiatives," Martin said.
Shares in the partnership rose 24 cents to close at $41.03.