10-Q

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the quarterly period ended March 31, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from ____________ to ____________

Commission File Number

000-50056

MARTIN MIDSTREAM PARTNERS L.P.

(Exact name of registrant as specified in its charter)

Delaware	05-0527861
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4200 Stone Road

Kilgore, Texas 75662

(Address of principal executive offices, zip code)

Registrant’s telephone number, including area code: (903) 983-6200

Securities registered pursuant to Section 12(b) of the Act

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units representing limited partnership interests	MMLP	The NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 

Yes ☐ No ☒

 The number of the registrant’s Common Units outstanding at May 11, 2020, was 38,852,507.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements included in this quarterly report that are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto), including, without limitation, the information set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations, are forward-looking statements. These statements can be identified by the use of forward-looking terminology including "forecast," "may," "believe," "will," "expect," "anticipate," "estimate," "continue," or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other "forward-looking" information. We and our representatives may from time to time make other oral or written statements that are also forward-looking statements.

These forward-looking statements are made based upon management’s current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements.

Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by these forward-looking statements for a number of important reasons, including those discussed under "Item 1A. Risk Factors" of our Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020, as updated and supplemented in Part II, Item 1A of this Quarterly Report on Form 10-Q, and as may be updated and supplemented from time to time in our future Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

	Page
PART I – FINANCIAL INFORMATION	4
Item 1. Financial Statements	4
Consolidated and Condensed Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019 (audited)	4
Consolidated and Condensed Statements of Operations for the Three Months Ended March 31, 2020 and 2019 (unaudited)	5
Consolidated and Condensed Statements of Capital (Deficit) for the Three Months Ended March 31, 2020 and 2019 (unaudited)	8
Consolidated and Condensed Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019 (unaudited)	9
Notes to Consolidated and Condensed Financial Statements (unaudited)	10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3. Quantitative and Qualitative Disclosures About Market Risk	48
Item 4. Controls and Procedures	49
PART II. OTHER INFORMATION	50
Item 1. Legal Proceedings	50
Item 1A. Risk Factors	50
Item 6. Exhibits	50

3

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2020			December 31, 2019
	(Unaudited)			(Audited)
Assets
Cash	$	68		$	2,856
Accounts and other receivables, less allowance for doubtful accounts of $498 and $532, respectively	59,073			87,254
Inventories	46,830			62,540
Due from affiliates	15,100			17,829
Fair value of derivatives	2			—
Other current assets	6,396			5,833
Assets held for sale	—			5,052
Total current assets	127,469			181,364
Property, plant and equipment, at cost	893,619			884,728
Accumulated depreciation	(479,301		)	(467,531		)
Property, plant and equipment, net	414,318			417,197
Goodwill	17,705			17,705
Right-of-use assets	25,771			23,901
Deferred income taxes, net	23,136			23,422
Other assets, net	3,800			3,567
Total assets	$	612,199		$	667,156
Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations	$	369,238		$	6,758
Trade and other accounts payable	52,713			64,802
Product exchange payables	4,772			4,322
Due to affiliates	1,304			1,470
Income taxes payable	605			472
Fair value of derivatives	—			667
Other accrued liabilities	20,282			28,789
Total current liabilities	448,914			107,280
Long-term debt, net	165,543			569,788
Finance lease obligations	526			717
Operating lease liabilities	17,810			16,656
Other long-term obligations	8,907			8,911
Total liabilities	641,700			703,352
Commitments and contingencies
Partners’ capital (deficit)	(29,501		)	(36,196		)
Total partners’ capital (deficit)	(29,501		)	(36,196		)
Total liabilities and partners' capital (deficit)	$	612,199		$	667,156

See accompanying notes to consolidated and condensed financial statements.

4

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and units in thousands, except per unit amounts)

	Three Months Ended
	March 31,
	2020			2019
Revenues:
Terminalling and storage  *	$	20,474		$	23,104
Transportation  *	38,941			37,795
Sulfur services	2,915			2,859
Product sales: *
Natural gas liquids	82,211			116,474
Sulfur services	25,408			28,734
Terminalling and storage	28,934			31,067
	136,553			176,275
Total revenues	198,883			240,033
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas liquids *	69,835			106,190
Sulfur services *	15,295			19,696
Terminalling and storage *	23,680			26,871
	108,810			152,757
Expenses:
Operating expenses  *	51,282			51,849
Selling, general and administrative  *	10,462			10,200
Depreciation and amortization	15,239			14,901
Total costs and expenses	185,793			229,707
Other operating income (loss), net	2,510			(720		)
Operating income	15,600			9,606
Other income (expense):
Interest expense, net	(9,925		)	(13,671		)
Gain on retirement of senior unsecured notes	3,484			—
Other, net	3			3
Total other expense	(6,438		)	(13,668		)
Net income (loss) before taxes	9,162			(4,062		)
Income tax expense	(347		)	(696		)
Income (loss) from continuing operations	8,815			(4,758		)
Income from discontinued operations, net of income taxes	—			1,102
Net income (loss)	8,815			(3,656		)
Less general partner's interest in net (income) loss	(176		)	73
Less (income) loss allocable to unvested restricted units	(55		)	2
Limited partners' interest in net income (loss)	$	8,584		$	(3,581	)

See accompanying notes to consolidated and condensed financial statements.

*Related Party Transactions Shown Below

5

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and units in thousands, except per unit amounts)

*Related Party Transactions Included Above

	Three Months Ended
	March 31,
	2020		2019
Revenues:*
Terminalling and storage	$	15,874	$	18,972
Transportation	5,894		5,643
Product Sales	92		421
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Sulfur services	2,767		2,574
Terminalling and storage	5,777		5,909
Expenses:
Operating expenses	21,771		22,536
Selling, general and administrative	8,312		8,535

See accompanying notes to consolidated and condensed financial statements.

6

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and units in thousands, except per unit amounts)

	Three Months Ended
	March 31,
	2020		2019
Allocation of net income (loss) attributable to:
Limited partner interest:
Continuing operations	$	8,584	$	(4,660	)
Discontinued operations	—		1,079
	$	8,584	$	(3,581	)
General partner interest:
Continuing operations	$	176	$	(95	)
Discontinued operations	—		22
	$	176	$	(73	)
Net income (loss) per unit attributable to limited partners:
Basic:
Continuing operations	$	0.22	$	(0.12	)
Discontinued operations	—		0.03
	$	0.22	$	(0.09	)
Weighted average limited partner units - basic	38,641		38,682
Diluted:
Continuing operations	$	0.22	$	(0.12	)
Discontinued operations	—		0.03
	$	0.22	$	(0.09	)
Weighted average limited partner units - diluted	38,644		38,682

See accompanying notes to consolidated and condensed financial statements.

7

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)

(Unaudited)

(Dollars in thousands)

				Partners’ Capital (Deficit)
	Parent Net Investment			Common Limited					General Partner Amount
				Units		Amount						Total
Balances - January 1, 2019	$	23,720		39,032,237		$	258,085		$	6,627		$	288,432
Net loss	—			—		(3,583		)	(73		)	(3,656		)
Issuance of restricted units	—			16,944		—			—			—
Forfeiture of restricted units	—			(118,087	)	—			—			—
Cash distributions	—			—		(19,221		)	(392		)	(19,613		)
Unit-based compensation	—			—		352			—			352
Purchase of treasury units	—			(31,504	)	(392		)	—			(392		)
Excess purchase price over carrying value of acquired assets	—			—		(102,393		)	—			(102,393		)
Deferred taxes on acquired assets and liabilities	—			—		24,781			—			24,781
Contribution to parent	(23,720		)	—		—			—			(23,720		)
Balances - March 31, 2019	$	—		38,899,590		$	157,629		$	6,162		$	163,791
Balances - January 1, 2020	$	—		38,863,389		$	(38,342	)	$	2,146		$	(36,196	)
Net income	—			—		8,639			176			8,815
Issuance of restricted units	—			81,000		—			—			—
Forfeiture of restricted units	—			(84,134	)	—			—			—
Cash distributions	—			—		(2,408		)	(49		)	(2,457		)
Unit-based compensation	—			—		346			—			346
Purchase of treasury units	—			(7,748	)	(9		)	—			(9		)
Balances - March 31, 2020	$	—		38,852,507		$	(31,774	)	$	2,273		$	(29,501	)

See accompanying notes to consolidated and condensed financial statements.

8

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Three Months Ended
	March 31,
	2020			2019
Cash flows from operating activities:
Net income (loss)	$	8,815		$	(3,656	)
Less: (Income) from discontinued operations, net of income taxes	—			(1,102		)
Net income (loss) from continuing operations	8,815			(4,758		)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	15,239			14,901
Amortization and write-off of deferred debt issuance costs	492			895
Amortization of premium on notes payable	(77		)	(77		)
Deferred income tax expense	286			369
Loss on sale of property, plant and equipment, net	190			720
Gain on retirement of senior unsecured notes	(3,484		)	—
Derivative (income) loss	(33		)	239
Net cash paid for commodity derivatives	(636		)	(385		)
Unit-based compensation	346			352
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	26,413			13,451
Product exchange receivables	—			(15		)
Inventories	15,710			15,235
Due from affiliates	2,729			(7,384		)
Other current assets	(1,413		)	(102		)
Trade and other accounts payable	(10,440		)	10,881
Product exchange payables	450			1,930
Due to affiliates	(166		)	1,154
Income taxes payable	133			544
Other accrued liabilities	(9,118		)	(11,177		)
Change in other non-current assets and liabilities	(547		)	(1,351		)
Net cash provided by continuing operating activities	44,889			35,422
Net cash provided by discontinued operating activities	—			5,181
Net cash provided by operating activities	44,889			40,603
Cash flows from investing activities:
Payments for property, plant and equipment	(12,260		)	(6,637		)
Acquisitions	—			(23,720		)
Payments for plant turnaround costs	(150		)	(3,827		)
Proceeds from involuntary conversion of property, plant and equipment	1,768			—
Proceeds from sale of property, plant and equipment	4,347			574
Net cash used in continuing investing activities	(6,295		)	(33,610		)
Net cash used in discontinued investing activities	—			(336		)
Net cash used in investing activities	(6,295		)	(33,946		)
Cash flows from financing activities:
Payments of long-term debt and finance lease obligations	(114,724		)	(89,255		)
Proceeds from long-term debt	76,000			205,000
Purchase of treasury units	(9		)	(392		)
Payment of debt issuance costs	(192		)	(77		)
Excess purchase price over carrying value of acquired assets	—			(102,393		)
Cash distributions paid	(2,457		)	(19,613		)
Net cash used in financing activities	(41,382		)	(6,730		)
Net decrease in cash	(2,788		)	(73		)
Cash at beginning of period	2,856			300
Cash at end of period	$	68		$	227
Non-cash additions to property, plant and equipment	$	2,142		$	2,001

See accompanying notes to consolidated and condensed financial statements.

9

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States ("U.S.") Gulf Coast region. Its four primary business lines include:   terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil; land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and natural gas liquids marketing, distribution, and transportation services.

The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the "SEC") on February 14, 2020.

Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated and condensed financial statements in conformity with U.S. GAAP.  Actual results could differ from those estimates.

Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of its membership interests in Arcadia Gas Storage, LLC, Cadeville Gas Storage LLC, Monroe Gas Storage Company, LLC and Perryville Gas Storage LLC (the "Natural Gas Storage Assets") to Hartree Cardinal Gas, LLC ("Hartree"), a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of the Natural Gas Storage Assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership concluded the disposition represented a strategic shift which had a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the three months ended March 31, 2019. See Note 3 for more information.

Impact of COVID-19 Pandemic. A novel strain of coronavirus (“COVID-19”) surfaced in late 2019 and has spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic. Due to the economic impacts of the COVID-19 pandemic, the markets have experienced a decline in oil prices in response to oil demand concerns. These concerns have been further exacerbated by the price war among members of the Organization of Petroleum Exporting Countries and other non-OPEC producer nations during the first quarter 2020 and global storage considerations. Travel restrictions and stay-at-home orders implemented by governments in many regions and countries across the globe, including the United States, have greatly impacted the demand for refined products resulting in a significant reduction in refinery utilization.

The COVID-19 pandemic has impacted the Partnership's 2020 performance to date, and the Partnership expects to continue to experience the impacts of COVID-19 throughout the remainder of 2020 as a result of continued reduction in refined product demand across the industries the Partnership serves. The extent to which the duration and severity of the pandemic impacts our business, results of operations, and financial condition, will depend on future developments, which are highly uncertain and cannot be predicted at this time. Accordingly, it is possible that the impact of the COVID-19 pandemic could have a material adverse effect on the Partnership's results of operations, financial position and cash flows for the year ended December 31, 2020, including the recoverability of long-lived assets and goodwill, the valuation of inventory, and the amount of expected credit losses.

10

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Management considered the impact of the COVID-19 pandemic on the assumptions and estimates used in the preparation of the financial statements. Management identified triggering events requiring the performance of impairment testing of long-lived assets and goodwill related to both the performance the Partnership's unit price during the first quarter of 2020 and certain of the Partnership's businesses that are sensitive to reductions in refined product demand and refinery utilization. As a result, the Partnership recorded impairment charges of $4.4 million related to long-lived assets. See Note 3 for more information. No impairments were identified related to goodwill. A sustained reduction in refinery demand and utilization could lead to future asset impairments as well as adversely affect access to capital and financing to be able to meet future obligations. Management also assessed the extent to which the current macroeconomic events brought about by COVID-19 and significant declines in refined product demand impacted the valuation of expected credit losses on accounts receivable and certain inventory items or resulted in modifications to any significant contracts. Ultimately the results of these assessments did not have a material impact on the Partnership's results as of March 31, 2020.

NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS

During the first quarter of 2020, the Partnership adopted Accounting Standards Update (“ASU”) 2016-13, "Financial Instruments - Credit Losses," which required the Partnership to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements.

NOTE 3. DIVESTITURES AND DISCONTINUED OPERATIONS

Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of the Natural Gas Storage Assets to Hartree, a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of these assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the three months ended March 31, 2019.

The operating results, which are included in income from discontinued operations, were as follows:

	Three Months Ended March 31, 2019
Total revenues	$	10,934
Total costs and expenses and other, net, excluding depreciation and amortization	(5,751		)
Depreciation and amortization	(4,081		)
Income from discontinued operations before income taxes	1,102
Income tax expense	—
Income from discontinued operations, net of income taxes	$	1,102

11

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Long-Lived Assets Held for Sale

At December 31, 2019, certain terminalling and storage and transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets in the table below. These assets are considered non-core assets to the Partnership's operations and did not qualify for discontinued operations presentation under the guidance of ASC 205-20.

	March 31, 2020		December 31, 2019
Terminalling and storage	$	—	$	3,552
Transportation	—		1,500
Assets held for sale	$	—	$	5,052

In the first quarter of 2020, the Partnership identified a triggering event related to a decline in the fair value related to the assets classified as held for sale at December 31, 2019. As a result, an impairment charge of $3,052 and $1,300 was recorded in the Terminalling and Storage and Transportation segments, respectively, in the first quarter of 2020 and was recorded in "Other operating income (loss)" in the Partnership's Consolidated and Condensed Statements of Operations. At March 31, 2020, the assets previously classified as held for sale no longer met the criteria to be classified as held for sale in accordance with ASC 360-10.

NOTE 4. REVENUE

The following table disaggregates our revenue by major source:

	Three Months Ended March 31,
	2020		2019
Terminalling and storage segment
Lubricant product sales	$	28,934	$	31,067
Throughput and storage	20,474		23,104
	$	49,408	$	54,171
Natural gas liquids segment
Natural gas liquids product sales	$	82,211	$	116,474
	$	82,211	$	116,474
Sulfur services segment
Sulfur product sales	$	6,481	$	9,952
Fertilizer product sales	18,927		18,782
Sulfur services	2,915		2,859
	$	28,323	$	31,593
Transportation segment
Land transportation	$	24,234	$	24,119
Inland transportation	13,706		12,477
Offshore transportation	1,001		1,199
	$	38,941	$	37,795

Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service.

12

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue.

Terminalling and Storage Segment

Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee.  For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate.  For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility.  When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Throughput and storage revenue in the table above includes non-cancelable revenue arrangements that are under the scope of ASC 842, whereby the Partnership has committed certain Terminalling and Storage assets in exchange for a minimum fee.

Natural Gas Liquids Segment

NGL distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month.

Sulfur Services Segment

Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product.  Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month.

Transportation Segment

Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month.

Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month.

The table includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

	2020		2021		2022		2023		2024		Thereafter		Total
Terminalling and storage
Throughput and storage	$	34,599	$	43,273	$	40,394	$	41,605	$	42,854	$	338,339	$	541,064
Sulfur services
Sulfur product sales	4,236		5,366		3,220		2,175		975		975		16,947
Total	$	38,835	$	48,639	$	43,614	$	43,780	$	43,829	$	339,314	$	558,011

13

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

NOTE 5. INVENTORIES

Components of inventories at March 31, 2020 and December 31, 2019 were as follows: 

	March 31, 2020		December 31, 2019
Natural gas liquids	$	3,687	$	19,097
Sulfur	4,443		4,586
Fertilizer	14,549		15,852
Lubricants	20,126		18,925
Other	4,025		4,080
	$	46,830	$	62,540

NOTE 6. DEBT

At March 31, 2020 and December 31, 2019, long-term debt consisted of the following:

	March 31, 2020			December 31, 2019
$400,000 Revolving credit facility at variable interest rate (3.93%1 weighted average at March 31, 2020), due August 20234 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $4,457 and $4,586, respectively2	$	165,543		$	196,414
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $599 and $770, respectively, including unamortized premium of $267 and $344, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, due February 2021, unsecured2,3,4,5	364,124			373,374
Total	529,667			569,788
Less: current portion	(364,124		)	—
Total long-term debt, net of current portion	$	165,543		$	569,788
Current installments of finance lease obligations	$	5,114		$	6,758
Finance lease obligations	526			717
Total finance lease obligations	$	5,640		$	7,475

¹ Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at March 31, 2020 and December 31, 2019 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.25% to 3.50% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.25% to 2.50%.  The applicable margin for existing LIBOR borrowings at March 31, 2020 is 3.25%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists.

² The Partnership is in compliance with all debt covenants as of March 31, 2020 and December 31, 2019, respectively.

³ The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

14

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

⁴ As of March 31, 2020, the Partnership’s 7.25% senior unsecured notes due 2021 (the "2021 Notes") were due within twelve months and have therefore been presented as a current liability on the Consolidated and Condensed Balance Sheets at March 31, 2020.  The Partnership's amended revolving credit facility includes a provision which accelerates the maturity date to August 19, 2020 if the 2021 Notes are not refinanced in a manner not prohibited by the facility. If the Partnership is unable to refinance the 2021 Notes and is unable to repay the outstanding borrowings under its revolving credit facility on August 19, 2020, the Partnership's ability to meet its obligations would be adversely affected. Failure to comply with this provision, if not waived, would result in an event of default under the Partnership's revolving credit facility, the potential acceleration of outstanding debt thereunder, and the potential foreclosure on the collateral securing such debt, and could cause a cross-default under other agreements, which could also result in the acceleration of those obligations by the counterparties to those agreements. The Partnership, with support from the Board of Directors, is actively pursuing a variety of strategic alternatives to strengthen the balance sheet and address near term maturities and accordingly, announced on April 6, 2020, the hiring of Stephens Inc. as a financial advisor to assist in the process. Pending the successful implementation of the refinancing, the conditions described above have raised substantial doubt about the Partnership’s ability to continue as a going concern.  The Partnership’s management is engaged in ongoing communication with credit providers and presently believes the measures being taken will enable the Partnership to successfully refinance the 2021 Notes and comply with covenants under its revolving credit facility, although no assurance can be given.

⁵ In March 2020, the Partnership repurchased on the open market an aggregate $9,344 of the 2021 Notes. These transactions resulted in a gain on retirement of $3,484.

The Partnership paid cash interest, net of capitalized interest, in the amount of $16,736 and $19,363 for the three months ended March 31, 2020 and 2019, respectively.  Capitalized interest was $4 and $2 for the three months ended March 31, 2020 and 2019, respectively.

NOTE 7. LEASES

The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee.

Operating lease Right-of-Use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin.

Our leases have remaining lease terms of 1 year to 17 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option.

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
	2020		2019
Operating lease cost	$	6,296	$	5,177
Finance lease cost:
Amortization of right-of-use assets	589		622
Interest on lease liabilities	110		183
Short-term lease cost	3,423		2,551
Total lease cost	$	10,418	$	8,533

15

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Supplemental balance sheet information related to leases was as follows:

	Three Months Ended March 31,
	2020			2019
Operating Leases
Operating lease right-of-use assets	$	25,771		$	23,901
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	8,358		$	7,722
Operating lease liabilities	17,810			16,656
Total operating lease liabilities	$	26,168		$	24,378
Finance Leases
Property, plant and equipment, at cost	$	13,163		$	14,058
Accumulated depreciation	(3,634		)	(1,888		)
Property, plant and equipment, net	$	9,529		$	12,170
Current installments of finance lease obligations	$	5,114		$	5,540
Finance lease obligations	526			4,886
Total finance lease obligations	$	5,640		$	10,426

The Partnership’s future minimum lease obligations as of March 31, 2020 consist of the following:

	Operating Leases			Finance Leases
Year 1	$	9,519		$	5,307
Year 2	7,113			336
Year 3	4,379			213
Year 4	1,978			—
Year 5	1,115			—
Thereafter	6,564			—
Total	$	30,668		$	5,856
Less amounts representing interest costs	(4,500		)	(216		)
Total lease liability	$	26,168		$	5,640

The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of March 31, 2020 are as follows: 2020 - $14,386; 2021 - $14,019; 2022 - $13,004; 2023 - $12,609; 2024 - $12,609; subsequent years - $49,414.

NOTE 8. SUPPLEMENTAL BALANCE SHEET INFORMATION

16

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Components of "Other accrued liabilities" were as follows:

	March 31, 2020		December 31, 2019
Accrued interest	$	3,538	$	10,761
Asset retirement obligations	—		25
Property and other taxes payable	2,803		5,411
Accrued payroll	3,944		3,011
Operating lease liabilities	8,358		7,722
Other	1,639		1,859
	$	20,282	$	28,789

The schedule below summarizes the changes in our asset retirement obligations:

	March 31, 2020
Beginning asset retirement obligations	$	8,936
Additions to asset retirement obligations	379
Accretion expense	102
Liabilities settled	(510		)
Ending asset retirement obligations	8,907
Current portion of asset retirement obligations1	—
Long-term portion of asset retirement obligations2	$	8,907

¹The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets.

²The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets.

NOTE 9. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Partnership’s revenues and cost of products sold are materially impacted by changes in NGL prices. Additionally, the Partnership's results of operations are materially impacted by changes in interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. All derivatives and hedging instruments are non-hedge derivatives and are included on the balance sheet as an asset or a liability measured at fair value and changes in fair value are recognized as gains and losses in earnings of the periods in which they occur.

(a)    Commodity Derivative Instruments

The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price.  The Partnership monitors and manages the commodity market risk associated with potential commodity risk exposure.  In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of March 31, 2020 to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. At March 31, 2020, the Partnership has instruments totaling a gross notional quantity of 25,000 barrels settling during the month of April 2020. At December 31, 2019, the Partnership had instruments totaling a gross notional quantity of 452,000 barrels settling during the period from January 31, 2020 through February 29, 2020. These instruments settle against the applicable pricing source for each grade and location.

17

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

(b)    Interest Rate Derivative Instruments

The Partnership is exposed to market risks associated with interest rates. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. From time to time, the Partnership enters into interest rate swaps to manage interest rate risk associated with the Partnership’s variable rate credit facility and its 2021 Notes. At March 31, 2020 and December 31, 2019, the Partnership did not have any outstanding interest rate derivative instruments.

For information regarding gains and losses on interest rate derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below.

(c)    Tabular Presentation of Gains and Losses on Derivative Instruments

The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:

	Fair Values of Derivative Instruments in the Consolidated and Condensed Balance Sheets
	Derivative Assets					Derivative Liabilities
		Fair Values					Fair Values
	Balance Sheet Location	March 31, 2020		December 31, 2019		Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives not designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	2	$	—	Fair value of derivatives	$	—	$	667
Total derivatives not designated as hedging instruments		$	2	$	—		$	—	$	667

Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations

For the Three Months Ended March 31, 2020 and 2019

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2020		2019
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	33	$	(239	)
Total effect of derivatives not designated as hedging instruments		$	33	$	(239	)

NOTE 10. PARTNERS' CAPITAL

As of March 31, 2020, Partners’ capital consisted of 38,852,507 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owns 6,114,532 of the Partnership's common limited partner units representing approximately 15.7% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management Corporation controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of the Partnership's general partner.

18

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

The partnership agreement of the Partnership (the "Partnership Agreement") contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts.

Incentive Distribution Rights

MMGP holds a 2% general partner interest and certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement. The general partner was allocated no incentive distributions during the three months ended March 31, 2020 and 2019.

The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit.

Distributions of Available Cash

The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter.

Net Income per Unit

The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of income and losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations.

For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:

19

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

	Three Months Ended March 31,
	2020		2019
Continuing operations:
Income (loss) from continuing operations	$	8,815	$	(4,758	)
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	49		256
General partner interest in undistributed income (loss)	127		(351		)
Less income (loss) allocable to unvested restricted units	55		(3		)
Limited partners’ interest in net income (loss)	$	8,584	$	(4,660	)

	Three Months Ended March 31,
	2020		2019
Discontinued operations:
Income from discontinued operations	$	—	$	1,102
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	—		(59		)
General partner interest in undistributed income	—		81
Less income allocable to unvested restricted units	—		1
Limited partners’ interest in net income	$	—	$	1,079

The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income from continuing and discontinued operations to total net income.

The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:

	Three Months Ended March 31,
	2020	2019
Basic weighted average limited partner units outstanding	38,640,862	38,681,925
Dilutive effect of restricted units issued	3,605	—
Total weighted average limited partner diluted units outstanding	38,644,467	38,681,925

All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the periods presented. All common unit equivalents were antidilutive for the three months ended March 31, 2019 because the limited partners were allocated a net loss in this period.

20

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

NOTE 11. UNIT BASED AWARDS

The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated and condensed financial statements in accordance with certain provisions of ASC 718. Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:

	Three Months Ended March 31,
	2020		2019
Employees	$	301	$	329
Non-employee directors	45		23
Total unit-based compensation expense	$	346	$	352

All of the Partnership's outstanding awards at March 31, 2020 met the criteria to be treated under equity classification.

Long-Term Incentive Plans

      The Partnership's general partner has a long-term incentive plan for employees and directors of the general partner and its affiliates who perform services for the Partnership.

On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan (the "2017 LTIP"). The plan currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee").

 A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the plan containing such terms as the Compensation Committee shall determine under the plan. With respect to time-based restricted units ("TBRU's"), the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("Performance Based Restricted Units" or "PBRU's"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRU's are earned only upon our achievement of an objective performance measure for the performance period. PBRU's which vest are payable in common units.  Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement.

The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally vest in equal annual installments over three years of service.

In February 2020, the Partnership issued 27,000 TBRU's to each of the Partnership's three independent directors under the 2017 LTIP.  These restricted common units vest in equal installments of 6,750 units on January 24, 2021, 2022, 2023, and 2024.

On March 1, 2018, the Partnership issued 301,550 TBRU's and 317,925 PBRU's to certain employees of Martin Resource Management Corporation. The TBRU's vest in equal installments over a three-year service period. The PBRU's will vest at the conclusion of a three-year performance period based on certain performance targets. In addition, the PBRU's awarded on March 1, 2018 that are achieved will only vest if the grantee is employed by Martin Resource Management Corporation on March 31, 2021. As of March 31, 2020, the Partnership is unable to ascertain if certain performance conditions will be achieved and, as such, has not recognized compensation expense for the vesting of the units. The Partnership will record

21

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

compensation expense for the vested portion of the units once the achievement of the performance condition is deemed probable.

The restricted units are valued at their fair value at the date of grant which is equal to the market value of common units on such date. A summary of the restricted unit activity for the three months ended March 31, 2020 is provided below:

	Number of Units			Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period	379,019			$	13.91
Granted (TBRU)	81,000			$	2.53
Vested	(101,128		)	$	13.95
Forfeited	(84,134		)	$	13.90
Non-Vested, end of period	274,757			$	10.54
Aggregate intrinsic value, end of period	$	302

A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three months ended March 31, 2020 and 2019 is provided below:

	Three Months Ended March 31,
	2020		2019
Aggregate intrinsic value of units vested	$	151	$	1,351
Fair value of units vested	1,427		1,551

As of March 31, 2020, there was $1,613 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 1.51 years.

NOTE 12. RELATED PARTY TRANSACTIONS

As of March 31, 2020, Martin Resource Management Corporation owns 6,114,532 of the Partnership’s common units representing approximately 15.7% of the Partnership’s outstanding limited partner units.  Martin Resource Management Corporation controls the Partnership's general partner by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2% general partner interest in the Partnership and the Partnership’s IDRs.  The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management Corporation’s ownership as of March 31, 2020, effectively gives Martin Resource Management Corporation the ability to veto some of the Partnership’s actions and to control the Partnership’s management.

The following is a description of the Partnership’s material related party agreements and transactions:

22

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Omnibus Agreement

       Omnibus Agreement.  The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management Corporation that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management Corporation and the Partnership’s use of certain Martin Resource Management Corporation trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation.

Non-Competition Provisions. Martin Resource Management Corporation has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of:

• providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants;

•providing land and marine transportation of petroleum products, by-products, and chemicals;

•distributing NGLs; and

•manufacturing and selling sulfur-based fertilizer products and other sulfur-related products.

This restriction does not apply to:

• the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates;

• any business operated by Martin Resource Management Corporation, including the following:

◦ distributing fuel oil, marine fuel and other liquids;

◦ providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida;

◦ operating a crude oil gathering business in Stephens, Arkansas;

◦ providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas;

◦ providing crude oil marketing and transportation from the well head to the end market;

◦ operating an environmental consulting company;

◦ supplying employees and services for the operation of the Partnership's business; and

◦ operating, solely for our account, the asphalt facilities in each of Hondo, South Houston and Port Neches, Texas and Omaha, Nebraska.

• any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of less than $5,000;

• any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of $5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the conflicts committee of the board of directors of the general partner of the Partnership (the "Conflicts Committee"); and

23

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

• any business that Martin Resource Management Corporation acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $5,000 or more and represents less than 20% of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business.

Services.  Under the Omnibus Agreement, Martin Resource Management Corporation provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management Corporation for direct expenses.  In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses.

Effective January 1, 2020, through December 31, 2020, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $16,410.  The Partnership reimbursed Martin Resource Management Corporation for $4,103 and $4,164 of indirect expenses for the three months ended March 31, 2020 and 2019, respectively.  The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.

These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management Corporation provides to the Partnership, 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 the Partnership shares with Martin Resource Management Corporation retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management Corporation’s services will terminate if Martin Resource Management Corporation ceases to control the general partner of the Partnership.

Related  Party Transactions. The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management Corporation without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management Corporation that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above.

License Provisions. Under the Omnibus Agreement, Martin Resource Management Corporation has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates.

Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management Corporation.  The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation.  Such amendments were approved by the Conflicts Committee.  The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management Corporation for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management Corporation.

Master Transportation Services Agreement

Master Transportation Agreement.  Martin Transport, Inc. ("MTI"), a wholly owned subsidiary of the Partnership, is a party to a master transportation services agreement effective January 1, 2019, with certain wholly owned subsidiaries of Martin Resource Management Corporation. Under the agreement, MTI agreed to transport Martin Resource Management Corporation's petroleum products and by-products.

24

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Term and Pricing. The agreement will continue unless either party terminates the agreement by giving at least 30 days' written notice to the other party.  These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list.

Indemnification.  MTI has agreed to indemnify Martin Resource Management Corporation against all claims arising out of the negligence or willful misconduct of MTI and its officers, employees, agents, representatives and subcontractors. Martin Resource Management Corporation has agreed to indemnify MTI against all claims arising out of the negligence or willful misconduct of Martin Resource Management Corporation and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of MTI and Martin Resource Management Corporation, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct.

Marine Agreements

Marine Transportation Agreement. The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management Corporation on a spot-contract basis at applicable market rates.  Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management Corporation are based on applicable market rates.

Marine Fuel.  The Partnership is a party to an agreement with Martin Resource Management Corporation dated November 1, 2002, under which Martin Resource Management Corporation provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of the Platt’s U.S. Gulf Coast Index for #2 Fuel Oil.  Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management Corporation.

Terminal Services Agreements

Diesel Fuel Terminal Services Agreement.  Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution.  At such time, the per-gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index.  This agreement was further amended on January 1, 2017, October 1, 2017, and April 1, 2019 to modify its minimum throughput requirements and throughput fees. The term of this agreement is currently evergreen and it will continue on a month to month basis until terminated by either party by giving 60 days’ written notice.  

Miscellaneous Terminal Services Agreements.  The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index.

Other Agreements

 Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross.  The tolling agreement expires November 25, 2031.  Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel.  Any additional barrels are processed at a modified price per barrel.  In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement.   Further, certain capital improvements, to the extent requested by Cross, are reimbursed through a capital recovery fee.  As of December 31, 2019, annual capital recovery fee reimbursement of $2,088 expired. An additional $2,586 of capital recovery fee reimbursement will expire on December 31, 2020.  All of these fees (other than the fuel

25

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

surcharge and capital recovery fee) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period.  In addition, on the third, sixth and ninth anniversaries of the agreement, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement. Also, the Partnership renegotiated a crude transportation contract set to expire in the first half of 2022 resulting in a reduction in revenue of $2,145 annually beginning January 1, 2020.

Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management Corporation for the provision of other services or the purchase of other goods.

The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated and Condensed Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding captions of the consolidated and condensed financial statements and do not reflect a statement of profits and losses for related party transactions.

The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Revenues:
Terminalling and storage	$	15,874	$	18,972
Transportation	5,894		5,643
Product sales:
Sulfur services	19		7
Terminalling and storage	73		414
	92		421
	$	21,860	$	25,036

The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Cost of products sold:
Sulfur services	$	2,767	$	2,574
Terminalling and storage	5,777		5,909
	$	8,544	$	8,483

26

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Operating expenses:
Transportation	$	15,553	$	14,980
Natural gas liquids	497		2,025
Sulfur services	1,146		924
Terminalling and storage	4,575		4,607
	$	21,771	$	22,536

The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Selling, general and administrative:
Transportation	$	1,839	$	1,728
Natural gas liquids	704		1,189
Sulfur services	743		716
Terminalling and storage	838		717
Indirect, including overhead allocation	4,188		4,185
	$	8,312	$	8,535

NOTE 13. BUSINESS SEGMENTS

The Partnership has four reportable segments: terminalling and storage, transportation, sulfur services and natural gas liquids. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions.

The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of administrative expenses or interest expense.    

27

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

Three Months Ended March 31, 2020	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations			Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	51,134	$	(1,726	)	$	49,408	$	7,456	$	758		$	3,745
Transportation	45,174		(6,233		)	38,941		4,280		(5,021		)	3,926
Sulfur services	28,336		(13		)	28,323		2,894		13,858			2,985
Natural gas liquids	82,215		(4		)	82,211		609		10,377			105
Indirect selling, general and administrative	—		—			—		—		(4,372		)	—
Total	$	206,859	$	(7,976	)	$	198,883	$	15,239	$	15,600		$	10,761

Three Months Ended March 31, 2019	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations			Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	55,892	$	(1,721	)	$	54,171	$	7,837	$	4,815		$	5,345
Transportation	45,186		(7,391		)	37,795		3,570		(3,880		)	2,461
Sulfur services	31,593		—			31,593		2,868		6,380			2,206
Natural gas liquids	116,474		—			116,474		626		6,858			287
Indirect selling, general and administrative	—		—			—		—		(4,567		)	—
Total	$	249,145	$	(9,112	)	$	240,033	$	14,901	$	9,606		$	10,299

The Partnership's assets by reportable segment as of March 31, 2020 and December 31, 2019, are as follows:

	March 31, 2020		December 31, 2019
Total assets:
Terminalling and storage	$	288,915	$	292,136
Transportation	170,274		170,045
Sulfur services	112,709		110,780
Natural gas liquids	40,301		94,195
Total assets	$	612,199	$	667,156

NOTE 14. COMMITTMENTS AND CONTINGENCIES

Contingencies

From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business.  In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership.

On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil.  The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct.  Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations.  The lawsuits against the customer have been transferred to the United States

28

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

District Court for the Western District of Missouri for consolidated pretrial proceedings.  On March 1, 2017, at the request of the parties, the Chancery Court of Davidson County, Tennessee administratively closed the Partnership's lawsuit pending rulings in the United States District Court for the Western District of Missouri.  In the event that either party moves the Chancery Court of Davidson County, Tennessee to reopen the case, we expect the Court would grant such motion and reopen the case.  Further, the same customer has made a claim under the Partnership’s insurance policy.  The insurer has denied the claim.  However, in the event that the customer is successful in pursuing the claim, such action would negatively impact the Partnership because the Partnership has certain reimbursement obligations it would owe the insurance company.  If the case is reopened or the insurance claim by the customer is successful, we are currently unable to determine the exposure we may have in this matter, if any.

NOTE 15. FAIR VALUE MEASUREMENTS

The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 2
	March 31, 2020		December 31, 2019
Commodity derivative contracts, net	$	2	$	(667	)

The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

• Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments.

• Current and noncurrent portion of long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the 2021 Notes is considered Level 1, as the fair value is based on quoted market prices in active markets.

	March 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Notes	$	364,124	$	146,825	$	373,374	$	343,470

NOTE 16. CONDENSED CONSOLIDATED FINANCIAL INFORMATION

The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. Martin Operating Partnership L.P. (the "Operating Partnership"), the Partnership’s wholly-owned subsidiary, and the Partnership's other operating subsidiaries have issued in the past, and may issue in the future, unconditional guarantees of senior or subordinated debt securities of the Partnership. The guarantees that have been issued are full, irrevocable and unconditional

29

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

and joint and several. In addition, the Operating Partnership may also issue senior or subordinated debt securities which, if issued, will be fully, irrevocably and unconditionally guaranteed by the Partnership. Substantially all of the Partnership's operating subsidiaries are subsidiary guarantors of its 2021 Notes and any subsidiaries other than the subsidiary guarantors are minor.

NOTE 17. INCOME TAXES

	Three Months Ended March 31,
	2020		2019
Provision for income taxes	$	347	$	696

The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. MTI is subject to income taxes due to its corporate structure. Total income tax expense of $347, related to the operation of the subsidiary, for the three months ended March 31, 2020, resulted in an effective income tax rate of 32.17%.

Total income tax expense of $448, related to the operation of the subsidiary, for the three months ended March 31, 2019, resulted in an effective income tax rate of 24.79%. The increase in the effective income tax rate for income taxes during the three months ended March 31, 2020, compared to the three months ended March 31, 2019, is primarily due to an increase in permanent differences and a decrease in income before income taxes. The decrease in the provision for income taxes during the three months ended March 31, 2020, compared to the similar period in 2019, was primarily due to the impact of a decrease in income before income taxes in the current period.

The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was enacted on March 27, 2020, in response to the market volatility and instability resulting from the COVID-19 pandemic, and includes changes to various income tax provisions including, but not limited to, providing for a five-year carryback of net operating losses generated in taxable years beginning after December 31, 2017, and before January 1, 2021, suspension of the 80% taxable income limitation for net operating losses generated after December 31, 2017, and before January 1, 2021, and relaxation of the limitation of adjusted taxable income as determined under Internal Revenue Code Section 163(j) from 30% to 50% when determining the deduction for business interest expense for 2019 and 2020. Since, prior to its acquisition by the Partnership, MTI was a Qualified Subchapter S subsidiary ("QSub") of Martin Resource Management Corporation, it is precluded from carrying back net operating losses to its QSub taxable years. The other applicable provisions of the CARES Act have no material impact on the annual effective tax rate ("AETR"), deferred taxes, or valuation allowances.

A current federal income tax expense (benefit) of $133 and $297, related to the operation of the subsidiary, were recorded for the three months ended March 31, 2020 and 2019, respectively. A current state income tax expense (benefit) of $(72) and $(218), related to the operation of the subsidiary, were recorded for the three months ended March 31, 2020 and 2019, respectively

With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

A deferred tax expense related to the MTI temporary differences of $286 and $369 was recorded for the three months ended March 31, 2020 and 2019, respectively. A deferred tax asset of $23,136 and $23,422, related to the cumulative book and tax temporary differences, existed at March 31, 2020 and December 31, 2019, respectively.

All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.

30

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

March 31, 2020

(Unaudited)

NOTE 18. SUBSEQUENT EVENTS

Quarterly Distribution. On April 22, 2020, the Partnership declared a quarterly cash distribution of $0.0625 per common unit for the first quarter of 2020, or $0.25 per common unit on an annualized basis, which will be paid on May 15, 2020 to unitholders of record as of May 8, 2020.

31

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion of our financial condition and results of operations in conjunction with the consolidated and condensed financial statements and the notes thereto included elsewhere in this quarterly report.

Overview

We are a publicly traded limited partnership with a diverse set of operations focused primarily in the U.S. Gulf Coast region. Our four primary business lines include:

• Terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil;

• Land and marine transportation services for petroleum products and by-products, chemicals, and specialty products;

• Sulfur and sulfur-based products processing, manufacturing, marketing, and distribution; and

• NGL marketing, distribution, and transportation services.

The petroleum products and by-products we collect, transport, store and market are produced primarily by major and independent oil and gas companies who often turn to third parties, such as us, for the transportation and disposition of these products. In addition to these major and independent oil and gas companies, our primary customers include independent refiners, large chemical companies, and other wholesale purchasers of these products. We operate primarily in the U.S. Gulf Coast region. This region is a major hub for petroleum refining, natural gas gathering and processing, and support services for the exploration and production industry.

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, 2020, Martin Resource Management Corporation owned 15.7% of our total outstanding common limited partner units. Furthermore, Martin Resource Management Corporation controls Martin Midstream GP LLC ("MMGP"), our general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of MMGP. MMGP owns a 2.0% general partner interest in us and all of our incentive distribution rights. Martin Resource Management Corporation directs our business operations through its ownership interests in and control of our general partner.

We entered into an omnibus agreement dated November 1, 2002, with Martin Resource Management Corporation (the "Omnibus Agreement") that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management Corporation and our use of certain of Martin Resource Management Corporation’s trade names and trademarks. Under the terms of the Omnibus Agreement, the employees of Martin Resource Management Corporation are responsible for conducting our business and operating our assets.

Martin Resource Management Corporation has operated our business since 2002.  Martin Resource Management Corporation began operating our NGL business in the 1950s and our sulfur business in the 1960s. It began our land transportation business in the early 1980s and our marine transportation business in the late 1980s. It entered into our fertilizer and terminalling and storage businesses in the early 1990s.

Significant Recent Developments

COVID-19 Pandemic

The Partnership prioritizes the health and safety of our employees, the businesses we serve, and the communities where we live and work. To support the safety of all of our employees and operations, precautionary measures have been implemented to prevent the COVID-19 virus from spreading in our workplace or the locations we serve, including suspending non-essential travel, limiting the number of employees attending meetings, reducing the number of people at our locations at any one time, monitoring the health of all employees, and implementing work-from-home initiatives for all eligible employees.

32

Further, we began awareness training for all of our drivers, vessel crews, blending operators and other affected personnel regarding preventative measures in or around our docks, vessels, and trucks and locations to which they are delivering. Our communication lines are open 24/7 for the environmental health and safety division, land and marine logistics, and sales and marketing teams.

Due to the economic impacts of the COVID-19 pandemic, the markets have experienced a decline in oil prices in response to oil demand concerns. These concerns have been further exacerbated by the price war among members of the Organization of Petroleum Exporting Countries and other non-OPEC producer nations during the first quarter 2020 and global storage considerations. Travel restrictions and stay-at-home orders implemented by governments in many regions and countries across the globe, including the United States, have greatly impacted the demand for refined products resulting in a significant reduction in refinery utilization. The COVID-19 pandemic has impacted our 2020 performance to date. The impact of this outbreak started in February and was more significant in March, during which time we have seen unfavorable trends in certain key metrics across several of our business lines compared to recent periods.

We expect to continue to experience the adverse impacts of COVID-19 on our business throughout the remainder of 2020 as a result of an expected continued reduction in refined product demand across the industries we serve. As we look forward in our Terminalling and Storage segment, there should be minimal impact on the storage component of this business due to minimum volume commitment contracts. However, there is downside risk in our packaged lubricant and grease businesses due to anticipated reduced demand from our oil and gas production customers and our construction customers. In our Transportation segment, reduced demand for refined products is expected to continue to impact our daily load count specific to our refinery customers in our land transportation business. Our near-term outlook currently remains cautiously optimistic for marine transportation as we are now seeing demand for the use of barges as floating storage for crude oil, which should support barge utilization if refinery barge demand decreases. In our Natural Gas Liquids segment, our butane optimization business could be impacted by reduced butane production out of third-party refineries as they run at lower utilization rates during the economic shutdown. As a result, we are unable to predict the amount of butane volume we are able to purchase and store this summer in order to sell back to refiners during the winter blending season. However, we believe working capital invested in this business will be significantly less than last year, primarily due to depressed energy prices which translates to lower debt levels supporting our butane business in 2020. Looking forward in our Sulfur Services segment, we believe our molten sulfur business will not be affected as we are paid a monthly logistics fee by our primary customer. However, we do believe there will be reduced overall sulfur volumes from third-party refineries, which will negatively impact our prilling volume, reducing our operating fee revenue. We expect, however, to continue to receive our reservation fees regardless of the amount of sulfur volume processed through our prillers.

The extent to which the duration and severity of the pandemic impacts our business, results of operations, and financial condition, will depend on future developments, which are highly uncertain and cannot be predicted at this time. Accordingly, the full impact of COVID-19 will not be reflected in our results of operations and overall financial performance until future periods. In an effort to conserve capital in the near-term, we are actively considering, planning and executing expense reduction initiatives and have elected to defer certain maintenance and growth capital expenditures until 2021.

Management also assessed the extent to which the current macroeconomic events brought about by COVID-19 and significant declines in refined product demand impacted the valuation of expected credit losses on accounts receivable and certain inventory items or resulted in modifications to any significant contracts. Ultimately the results of these assessments did not have a material impact on our results as of March 31, 2020.

Other Recent Developments

Beginning in July of 2018, we committed to strengthening our balance sheet through strategic initiatives aimed at reducing leverage by divesting non-core assets and businesses, creating the ability to focus on a streamlined corporate strategy and position the Partnership for growth.

The first set of initiatives was executed in 2018 with the divestiture of our 20% interest in West Texas LPG Pipeline Limited Partnership for $195.0 million and the sale of a non-strategic terminal asset located in Nevada for $8.0 million. On January 1, 2019, we completed the next initiative with the acquisition of Martin Transport, Inc. from Martin Resource Management Corporation for $135.0 million, positioning us for cash flow growth. On July 1, 2019, we completed the sale of our natural gas storage assets for $215.0 million, which was an important piece of the Partnership’s strategy to strengthen the balance sheet and re-focus our operational expertise on the refinery services industry. On August 12, 2019, we completed the sale of our East Texas Pipeline for $17.5 million.

33

As a result of dispositions, offset by acquisitions, we were able to pay down $300.5 million of outstanding debt while incurring only a slight reduction to projected EBITDA. Consistent with our strategy of reducing leverage and improving liquidity, on January 28, 2020, we announced a $0.75 per unit reduction of our cash distribution on an annual basis, allowing us to retain $29.2 million to continue to strengthen our balance sheet.

Subsequent Events

Quarterly Distribution. On April 22, 2020, we declared a quarterly cash distribution of $0.0625 per common unit for the first quarter of 2020, or $0.25 per common unit on an annualized basis, which will be paid on May 15, 2020 to unitholders of record as of May 8, 2020.

Critical Accounting Policies and Estimates    

Our discussion and analysis of our financial condition and results of operations are based on the historical consolidated and condensed financial statements included elsewhere herein. We prepared these financial statements in conformity with United States generally accepted accounting principles U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances. We routinely evaluate these estimates, utilizing historical experience, consultation with experts and other methods we consider reasonable in the particular circumstances. Our results may differ from these estimates, and any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Changes in these estimates could materially affect our financial position, results of operations or cash flows. See the "Critical Accounting Policies and Estimates" section in "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 2, "Significant Accounting Policies" in Notes to Consolidated Financial Statements included within our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020.

Our Relationship with Martin Resource Management Corporation

 Martin Resource Management Corporation is engaged in the following principal business activities:

• distributing fuel oil, asphalt, marine fuel and other liquids;

• providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida;

• operating a crude oil gathering business in Stephens, Arkansas;

• providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas;

• providing crude oil marketing and transportation from the well head to the end market;

• operating an environmental consulting company;

• supplying employees and services for the operation of our business; and

• operating, solely for our account, the asphalt facilities in each of Hondo, South Houston and Port Neches, Texas and Omaha, Nebraska.

We are and will continue to be closely affiliated with Martin Resource Management Corporation as a result of the following relationships.

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Ownership

Martin Resource Management Corporation owns approximately 15.7% of the outstanding limited partner units. In addition, Martin Resource Management Corporation controls MMGP, our general partner, by virtue of its 51% voting interest in Holdings, the sole member of MMGP. MMGP owns a 2% general partner interest in us and all of our incentive distribution rights.

Management

Martin Resource Management Corporation directs our business operations through its ownership interests in and control of our general partner. We benefit from our relationship with Martin Resource Management Corporation through access to a significant pool of management expertise and established relationships throughout the energy industry. We do not have employees. Martin Resource Management Corporation employees are responsible for conducting our business and operating our assets on our behalf.

Related Party Agreements

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 $34.4 million of direct costs and expenses for the three months ended March 31, 2020 compared to $35.4 million for the three months ended March 31, 2019. There is no monetary limitation on the amount we are required to reimburse Martin Resource Management Corporation for direct expenses.

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, 2020 and 2019, the Conflicts Committee approved reimbursement amounts of $4.2 million and $4.2 million, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.  These indirect expenses covered the centralized corporate functions Martin Resource Management Corporation provides for us, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions we share with Martin Resource Management Corporation’s retained businesses.  The Omnibus Agreement also contains significant non-compete provisions and indemnity obligations.  Martin Resource Management Corporation also licenses certain of its trademarks and trade names to us under the Omnibus Agreement.

The agreements include, but are not limited to, a master transportation services agreement, marine transportation agreements, terminal services agreements, a tolling agreement, and a sulfuric acid sales agency agreement. Pursuant to the terms of the Omnibus Agreement, we are prohibited from entering into certain material agreements with Martin Resource Management Corporation without the approval of the Conflicts Committee.

For a more comprehensive discussion concerning the Omnibus Agreement and the other agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13. Certain Relationships and Related Transactions, and Director Independence" set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020.

Commercial

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 21% and 17% of our total costs and expenses during the three months ended March 31, 2020 and 2019, respectively.

Correspondingly, Martin Resource Management Corporation is one of our significant customers. Our sales to Martin Resource Management Corporation accounted for approximately 11% and 10% of our total revenues for both the three months ended March 31, 2020 and 2019, respectively.

For a more comprehensive discussion concerning the agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13. Certain Relationships and Related Transactions, and Director Independence" set forth in our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020.

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Approval and Review of Related Party Transactions

If we contemplate entering into a transaction, other than a routine or in the ordinary course of business transaction, in which a related person will have a direct or indirect material interest, the proposed transaction is submitted for consideration to the board of directors of our general partner or to our management, as appropriate. If the board of directors of our general partner is involved in the approval process, it determines whether to refer the matter to the Conflicts Committee of our general partner's board of directors, as constituted under our limited partnership agreement. If a matter is referred to the Conflicts Committee, it obtains information regarding the proposed transaction from management and determines whether to engage independent legal counsel or an independent financial advisor to advise the members of the committee regarding the transaction.  If the Conflicts Committee retains such counsel or financial advisor, it considers such advice and, in the case of a financial advisor, such advisor’s opinion as to whether the transaction is fair and reasonable to us and to our unitholders.

How We Evaluate Our Operations

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. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA and (3) distributable cash flow. Our management views these measures as important performance measures of core profitability for our operations and the ability to generate and distribute cash flow, and as key components of our internal financial reporting. We believe investors benefit from having access to the same financial measures that our 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. We have included information concerning EBITDA and adjusted EBITDA because they provide investors and management with additional information to better understand the following: financial performance of our assets without regard to financing methods, capital structure or historical cost basis; our operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. Our method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind our use of adjusted EBITDA is to measure the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness and make distributions to our unit holders.

Distributable Cash Flow. 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 our 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.

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 U.S. GAAP. Our method of computing these measures may not be the same method used to compute similar measures reported by other entities.

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 months ended March 31, 2020 and 2019.

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Reconciliation of EBITDA, Adjusted EBITDA, and Distributable Cash Flow

	Three Months Ended
	March 31,
	2020			2019
	(in thousands)
Net income (loss)	$	8,815		$	(3,656	)
Less: (Income) from discontinued operations, net of income taxes	—			(1,102		)
Income (loss) from continuing operations	8,815			(4,758		)
Adjustments:
Interest expense, net	9,925			13,671
Income tax expense	347			696
Depreciation and amortization	15,239			14,901
EBITDA from Continuing Operations	34,326			24,510
Adjustments:
Loss on sale of property, plant and equipment, net	190			720
Unrealized mark-to-market on commodity derivatives	(669		)	(147		)
Transaction costs associated with acquisitions	—			184
Lower of cost or market adjustments	335			—
Gain on repurchase of senior unsecured notes	(3,484		)	—
Unit-based compensation	346			352
Adjusted EBITDA from Continuing Operations	31,044			25,619
Adjustments:
Interest expense, net	(9,925		)	(13,671		)
Income tax expense	(347		)	(696		)
Amortization of debt premium	(77		)	(77		)
Amortization of deferred debt issuance costs	492			895
Deferred income tax expense	286			369
Payments for plant turnaround costs	(150		)	(3,827		)
Maintenance capital expenditures	(3,026		)	(3,859		)
Distributable Cash Flow from Continuing Operations	$	18,297		$	4,753
Income from discontinued operations, net of income taxes	$	—		$	1,102
Adjustments:
Depreciation and amortization	—			4,081
EBITDA and Adjusted EBITDA from Discontinued Operations	—			5,183
Maintenance capital expenditures	—			(336		)
Distributable Cash Flow from Discontinued Operations	$	—		$	4,847

Results of Operations

The results of operations for the three months ended March 31, 2020 and 2019 have been derived from our consolidated and condensed financial statements.

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, 2020 and 2019.  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.

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Our consolidated and condensed results of operations are presented on a comparative basis below.  There are certain items of income and expense which we do not allocate on a segment basis.  These items, including interest expense and indirect selling, general and administrative expenses, are discussed following the comparative discussion of our results within each segment.

Three Months Ended March 31, 2020 Compared to the Three Months Ended March 31, 2019

	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues  after Eliminations		Operating Income (Loss)			Operating Income (Loss) Intersegment Eliminations			Operating Income (Loss)  after Eliminations
Three Months Ended March 31, 2020	(in thousands)
Terminalling and storage	$	51,134	$	(1,726	)	$	49,408	$	1,029		$	(271	)	$	758
Transportation	45,174		(6,233		)	38,941		2,389			(7,410		)	(5,021		)
Sulfur services	28,336		(13		)	28,323		11,296			2,562			13,858
Natural gas liquids	82,215		(4		)	82,211		5,258			5,119			10,377
Indirect selling, general and administrative	—		—			—		(4,372		)	—			(4,372		)
Total	$	206,859	$	(7,976	)	$	198,883	$	15,600		$	—		$	15,600

	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues  after Eliminations		Operating Income (Loss)			Operating Income (Loss) Intersegment Eliminations			Operating Income (Loss)  after Eliminations
Three Months Ended March 31, 2019	(in thousands)
Terminalling and storage	$	55,892	$	(1,721	)	$	54,171	$	5,086		$	(271	)	$	4,815
Transportation	45,186		(7,391		)	37,795		3,530			(7,410		)	(3,880		)
Sulfur services	31,593		—			31,593		3,818			2,562			6,380
Natural gas liquids	116,474		—			116,474		1,739			5,119			6,858
Indirect selling, general and administrative	—		—			—		(4,567		)	—			(4,567		)
Total	$	249,145	$	(9,112	)	$	240,033	$	9,606		$	—		$	9,606

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Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended March 31, 2020 and 2019

	Three Months Ended March 31,					Variance			Percent Change
	2020			2019
	(In thousands, except BBL per day)
Revenues:
Services	$	22,167		$	24,800	$	(2,633	)	(11	)%
Products	28,967			31,092		(2,125		)	(7	)%
Total revenues	51,134			55,892		(4,758		)	(9	)%
Cost of products sold	24,988			28,277		(3,289		)	(12	)%
Operating expenses	12,951			13,353		(402		)	(3	)%
Selling, general and administrative expenses	1,659			1,349		310			23	%
Depreciation and amortization	7,456			7,837		(381		)	(5	)%
	4,080			5,076		(996		)	(20	)%
Other operating income (loss), net	(3,051		)	10		(3,061		)	(30,610	)%
Operating income	$	1,029		$	5,086	$	(4,057	)	(80	)%
Shore-based throughput volumes (guaranteed minimum) (gallons)	20,000			20,000		—			—	%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)	6,500			6,500		—			—	%

Services revenues. Services revenue decreased $2.6 million, of which $1.8 million was primarily a result of decreased throughput fees at our shore-based terminals combined with a $0.9 million decrease as a result of a decrease in minimum throughput revenue and pipeline fees at our Smackover refinery.

Products revenues. A 27% decrease in average sales price at our shore-based terminals resulted in a $2.9 million decrease in products revenues. Offsetting this decrease was a 4% increase in sales volumes at our blending and packaging facilities, resulting in a $0.9 million increase to products revenues.

Cost of products sold.  A 28% decrease in average cost per gallon at our shore-based terminals resulted in a $2.8 million decrease in cost of products sold. In addition, a 6% decrease in average cost per gallon, offset with a 4% increase in sales volumes at our blending and packaging facilities resulted in a $0.4 million decrease in cost of products sold.

Operating expenses. Operating expenses decreased primarily as a result of decreased utilities across our terminals.

Selling, general and administrative expenses.  Selling, general and administrative expenses increased primarily due to an increase in professional fees across our terminals.

Depreciation and amortization.  The decrease in depreciation and amortization is due to the disposition of assets at several shore-based and specialty terminals, offset by recent capital expenditures.

Other operating income (loss), net.  Other operating income (loss), net represents gains and losses from the disposition of property, plant and equipment.

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Transportation Segment

Comparative Results of Operations for the Three Months Ended March 31, 2020 and 2019

	Three Months Ended March 31,						Variance			Percent Change
	2020			2019
	(In thousands)
Revenues	$	45,174		$	45,186		$	(12	)	—	%
Operating expenses	35,162			35,265			(103		)	—	%
Selling, general and administrative expenses	2,135			2,085			50			2	%
Depreciation and amortization	4,280			3,570			710			20	%
	$	3,597		$	4,266		$	(669	)	(16	)%
Other operating loss, net	(1,208		)	(736		)	(472		)	(64	)%
Operating income	$	2,389		$	3,530		$	(1,141	)	(32	)%

Marine Transportation Revenues.  An increase of $0.9 million in inland revenue is attributable to increased utilization and transportation rates. Offsetting these increases, offshore revenue decreased $0.2 million primarily due to decreased rates of $0.5 million, offset by increased utilization of $0.3 million.

Land Transportation Revenues. Freight revenue decreased $0.6 million primarily due to a 3% decrease in transportation rates. Additionally, fuel surcharge decreased $0.4 million.

Operating expenses.  Operating expenses remained relatively consistent.

Selling, general and administrative expenses.  Selling, general and administrative expenses remained relatively consistent.

Depreciation and amortization.  Depreciation and amortization increased as a result of recent capital expenditures, offset by asset disposals.

Other operating loss, net.  Other operating loss, net represents losses from the disposition of property, plant and equipment.

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Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended March 31, 2020 and 2019    

	Three Months Ended March 31,				Variance			Percent Change
	2020		2019
	(In thousands)
Revenues:
Services	$	2,915	$	2,859	$	56		2	%
Products	25,421		28,734		(3,313		)	(12	)%
Total revenues	28,336		31,593		(3,257		)	(10	)%
Cost of products sold	16,804		21,566		(4,762		)	(22	)%
Operating expenses	2,910		2,163		747			35	%
Selling, general and administrative expenses	1,203		1,178		25			2	%
Depreciation and amortization	2,894		2,868		26			1	%
	4,525		3,818		707			19	%
Other operating income, net	6,771		—		6,771
Operating income	$	11,296	$	3,818	$	7,478		196	%
Sulfur (long tons)	183		109		74			68	%
Fertilizer (long tons)	74		67		7			10	%
Total sulfur services volumes (long tons)	257		176		81			46	%

Services revenues.  Services revenues increased slightly as a result of renegotiation of contract terms effective January 2020.

Products revenues.  Products revenue decreased $11.3 million as a result of a 39% decrease in average sales price. A 46% increase in sales volumes, primarily attributable to a 68% increase in sulfur volumes, resulted in an offsetting increase of $8.0 million.

Cost of products sold.  A 47% decrease in average cost of products sold per ton reduced cost of products sold by $10.1 million. A 46% increase in sales volumes resulted in an offsetting increase in cost of products sold of $5.3 million.  Margin per ton decreased $7.20, or 18%.

Operating expenses.  Operating expenses increased primarily as a result of increases of $0.2 million in outside towing, $0.2 million in assist tugs, $0.2 million in marine fuel and lube, and $0.1 million in employee related expenses.

Selling, general and administrative expenses.   Selling, general and administrative expenses remained relatively consistent.

Depreciation and amortization.   Depreciation and amortization increased slightly as a result of recent capital expenditures.

Other operating income, net.  Other operating income, net increased $2.7 million as a result of business interruption recoveries related to the Neches ship-loader insurance claim received in the first quarter of 2020. An additional $4.1 million increase is related to a net gain from the disposition of property, plant and equipment.

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Natural Gas Liquids Segment

Comparative Results of Operations for the Three Months Ended March 31, 2020 and 2019

	Three Months Ended March 31,					Variance			Percent Change
	2020			2019
	(In thousands)
Products Revenues	$	82,215		$	116,474	$	(34,259	)	(29	)%
Cost of products sold	74,260			111,309		(37,049		)	(33	)%
Operating expenses	939			1,706		(767		)	(45	)%
Selling, general and administrative expenses	1,147			1,100		47			4	%
Depreciation and amortization	609			626		(17		)	(3	)%
	5,260			1,733		3,527			204	%
Other operating income (loss), net	(2		)	6		(8		)	(133	)%
Operating income	$	5,258		$	1,739	$	3,519		202	%
NGL sales volumes (Bbls)	2,445			2,907		(462		)	(16	)%

Products Revenues. Our average sales price per barrel decreased $6.44, or 16%, resulting in a decrease to revenues of $18.7 million. The decrease in average sales price per barrel was a result of a decrease in market prices. Sales volumes decreased 16%, decreasing revenues by $15.5 million.

Cost of products sold.  Our average cost per barrel decreased $7.92, or 21%, decreasing cost of products sold by $23.0 million.  The decrease in average cost per barrel was a result of a decrease in market prices.  The decrease in sales volume of 16% resulted in a $14.0 million decrease to cost of products sold. Our margins increased $1.48 per barrel, or 83%, during the period.

Operating expenses.  Operating expenses decreased $0.8 million related to the divestiture of assets and the elimination of the associated expenses.

Selling, general and administrative expenses.  Selling, general and administrative expenses remained relatively consistent.

Depreciation and amortization. Depreciation and amortization remained relatively consistent.

Other operating income (loss), net.  Other operating income, net represents gains and losses from the disposition of property, plant and equipment.

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Interest Expense, Net

Comparative Components of Interest Expense, Net for the Three Months Ended March 31, 2020 and 2019

	Three Months Ended March 31,						Variance			Percent Change
	2020			2019
	(In thousands)
Revolving loan facility	$	2,444		$	5,648		$	(3,204	)	(57	)%
7.25% Senior notes	6,531			6,474			57			1	%
Amortization of deferred debt issuance costs	492			895			(403		)	(45	)%
Amortization of debt premium	(77		)	(77		)	—			—	%
Other	425			562			(137		)	(24	)%
Finance leases	114			183			(69		)	(38	)%
Capitalized interest	(4		)	(2		)	(2		)	(100	)%
Interest income	—			(12		)	12			100	%
Total interest expense, net	$	9,925		$	13,671		$	(3,746	)	(27	)%

Indirect Selling, General and Administrative Expenses

	Three Months Ended March 31,				Variance			Percent Change
	2020		2019
	(In thousands)
Indirect selling, general and administrative expenses	$	4,372	$	4,567	$	(195	)	(4	)%

Indirect selling, general and administrative expenses decreased for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 primarily due to transaction expenses incurred in the first quarter of 2019 related to the acquisition of MTI.

Martin Resource Management Corporation allocates to us a portion of its indirect selling, general and administrative expenses for services such as accounting, legal, treasury, clerical, billing, information technology, administration of insurance, engineering, general office expense and employee benefit plans and other general corporate overhead functions we share with Martin Resource Management Corporation retained businesses. This allocation is based on the percentage of time spent by Martin Resource Management Corporation personnel that provide such centralized services. GAAP also permits other methods for allocation of these expenses, such as basing the allocation on the percentage of revenues contributed by a segment. The allocation of these expenses between Martin Resource Management Corporation and us is subject to a number of judgments and estimates, regardless of the method used. We can provide no assurances that our method of allocation, in the past or in the future, is or will be the most accurate or appropriate method of allocation for these expenses. Other methods could result in a higher allocation of selling, general and administrative expense to us, which would reduce our net income.

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, 2020 and 2019:

	Three Months Ended March 31,				Variance			Percent Change
	2020		2019
	(In thousands)
Conflicts Committee approved reimbursement amount	$	4,103	$	4,164	$	(61	)	(1	)%

The amounts reflected above represent our allocable share of such expenses. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.

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Liquidity and Capital Resources

General

Our primary sources of liquidity to meet operating expenses, service our indebtedness, pay distributions to our unitholders and fund capital expenditures have historically been cash flows generated by our operations, borrowings under our revolving credit facility and access to debt and equity capital markets, both public and private. Set forth below is a description of our cash flows for the periods indicated.

Cash Flows - Three Months Ended March 31, 2020 Compared to Three Months Ended March 31, 2019

The following table details the cash flow changes between the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,						Variance			Percent Change
	2020			2019
	(In thousands)
Net cash provided by (used in):
Operating activities	$	44,889		$	40,603		$	4,286		11	%
Investing activities	(6,295		)	(33,946		)	27,651			81	%
Financing activities	(41,382		)	(6,730		)	(34,652		)	(515	)%
Net increase (decrease) in cash and cash equivalents	$	(2,788	)	$	(73	)	$	(2,715	)	(3,719	)%

Net cash provided by operating activities. The increase in net cash provided by operating activities for the three months ended March 31, 2020 includes an increase in operating results of $13.6 million and a favorable variance in other non-current assets and liabilities of $0.8 million. Offsetting this increase was a $5.2 million decrease in net cash received from discontinued operating activities, a $4.7 million decrease in other non-cash charges, and a $0.2 million unfavorable variance in working capital.

Net cash used in investing activities. Net cash used in investing activities for the three months ended March 31, 2020 decreased $23.7 million as a result of assets acquired from MTI in January of 2019. Also contributing to the increase was $3.8 million in proceeds received as a result of higher sales of property, plant and equipment in 2020, as well as, an increase of $1.8 million due to proceeds received from the involuntary conversion of property, plant and equipment. A decrease of $0.3 million resulted from cash used in discontinued investing activities. Offsetting these decreases was an increase of $1.9 million due to higher payments for capital expenditures and plant turnaround costs in 2020.

Net cash used in financing activities. Net cash used in financing activities for the three months ended March 31, 2020 increased primarily as a result of $154.5 million related to net payments of long-term borrowings. Offsetting the increase was a $102.4 million decrease in cash used related to excess purchase price over the carrying value of acquired assets in common control transactions during 2019 and a $17.2 million decrease in cash distributions paid.

Total Contractual Obligations

A summary of our total contractual cash obligations as of March 31, 2020, is as follows: 

	Payments due by period
Type of Obligation	Total Obligation		Less than One Year		1-3 Years		3-5 Years		Due Thereafter
Revolving credit facility (1)	$	170,000	$	—	$	—	$	170,000	$	—
7.25% senior unsecured notes, due 2021	364,456		364,456		—		—		—
Throughput commitment	9,081		6,289		2,792		—		—
Operating leases	30,668		9,519		11,492		3,093		6,564
Finance lease obligations	5,640		5,114		526		—		—
Interest payable on finance lease obligations	216		193		23		—		—
Interest payable on fixed long-term debt obligations	23,713		23,713		—		—		—
Total contractual cash obligations	$	603,774	$	409,284	$	14,833	$	173,093	$	6,564

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(1) The revolving credit facility matures on (a) August 31, 2023, or (b) August 19, 2020 if the 2021 Notes have not been voluntarily refinanced on or prior to August 19, 2020.     

The interest payable under our credit facility is not reflected in the above table because such amounts depend on the  outstanding balances and interest rates, which vary from time to time. 

Letters of Credit.  At March 31, 2020, we had outstanding irrevocable letters of credit in the amount of $17.1 million, which were issued under our revolving credit facility.

Off Balance Sheet Arrangements.  We do not have any off-balance sheet financing arrangements.

Description of Our Long-Term Debt

2021 Senior Notes

For a description of our 7.25% senior unsecured notes due 2021, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Description of Our Long-Term Debt" in our Annual Report on Form 10-K for the year ended December 31, 2019, as amended.

Revolving Credit Facility

At March 31, 2020, we maintained a $400.0 million revolving credit facility. The revolving credit facility matures on (a) August 31, 2023, or (b) August 19, 2020 if the 2021 Notes have not been voluntarily refinanced on or prior to August 19, 2020.

As of March 31, 2020, we had $170.0 million outstanding under the revolving credit facility and $17.1 million of outstanding irrevocable letters of credit, leaving a maximum available to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $212.9 million. After giving effect to our then current borrowings, outstanding letters of credit and the financial covenants contained in our revolving credit facility, we had the ability to borrow approximately $46.2 million in additional amounts thereunder as of March 31, 2020.

The revolving credit facility is used for ongoing working capital needs and general partnership purposes, and to finance permitted investments, acquisitions and capital expenditures.  During the three months ended March 31, 2020, the level of outstanding draws on our credit facility has ranged from a low of $170.0 million to a high of $223.0 million.

The credit facility is guaranteed by substantially all of our subsidiaries. Obligations under the credit facility are secured by first priority liens on substantially all of our assets and those of the guarantors, including, without limitation, inventory, accounts receivable, bank accounts, marine vessels, equipment, fixed assets and the interests in our subsidiaries.

We may prepay all amounts outstanding under the credit facility at any time without premium or penalty (other than customary LIBOR breakage costs), subject to certain notice requirements. The credit facility requires mandatory prepayments of amounts outstanding thereunder with the net proceeds of certain asset sales, equity issuances and debt incurrences.

Indebtedness under the credit facility bears interest at our option at the Eurodollar Rate (the British Bankers Association LIBOR Rate) plus an applicable margin or the Base Rate (the highest of the Federal Funds Rate plus 0.50%, the 30-day Eurodollar Rate plus 1.0%, or the administrative agent’s prime rate) plus an applicable margin. We pay a per annum fee on all letters of credit issued under the credit facility, and we pay a commitment fee per annum on the unused revolving credit availability under the credit facility. The letter of credit fee, the commitment fee and the applicable margins for our interest rate vary quarterly based on our leverage ratio (as defined in the credit facility, being generally computed as the ratio of total funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) and are as follows as of March 31, 2020:

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Leverage Ratio	Base Rate Loans		Eurodollar Rate Loans		Letters of Credit
Less than 3.00 to 1.00	1.25	%	2.25	%	2.25	%
Greater than or equal to 3.00 to 1.00 and less than 3.50 to 1.00	1.50	%	2.50	%	2.50	%
Greater than or equal to 3.50 to 1.00 and less than 4.00 to 1.00	1.75	%	2.75	%	2.75	%
Greater than or equal to 4.00 to 1.00 and less than 4.50 to 1.00	2.00	%	3.00	%	3.00	%
Greater than or equal to 4.50 to 1.00 and less than 5.00 to 1.00	2.25	%	3.25	%	3.25	%
Greater than or equal to 5.00 to 1.00	2.50	%	3.50	%	3.50	%

At March 31, 2020, the applicable margin for revolving loans that are LIBOR loans ranges from 2.25% to 3.50% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.25% to 2.50%. The applicable margin for LIBOR borrowings at March 31, 2020 is 3.25%.  

The credit facility includes financial covenants that are tested on a quarterly basis, based on the rolling four quarter period that ends on the last day of each fiscal quarter.

In addition, the credit facility contains various covenants, which, among other things, limit our and our subsidiaries’ ability to: (i) grant or assume liens; (ii) make investments (including investments in our joint ventures) and acquisitions; (iii) enter into certain types of hedging agreements; (iv) incur or assume indebtedness; (v) sell, transfer, assign or convey assets; (vi) repurchase our equity, make distributions and certain other restricted payments, but the credit facility permits us to make quarterly distributions to unitholders so long as no default or event of default exists under the credit facility; (vii) change the nature of our business; (viii) engage in transactions with affiliates; (ix) enter into certain burdensome agreements; (x) make certain amendments to the Omnibus Agreement and our material agreements; (xi) make capital expenditures; and (xii) permit our joint ventures to incur indebtedness or grant certain liens.

The credit facility contains customary events of default, including, without limitation: (i) failure to pay any principal, interest, fees, expenses or other amounts when due; (ii) failure to meet the quarterly financial covenants; (iii) failure to observe any other agreement, obligation, or covenant in the credit facility or any related loan document, subject to cure periods for certain failures; (iv) the failure of any representation or warranty to be materially true and correct when made; (v) our, or any of our subsidiaries’ default under other indebtedness that exceeds a threshold amount; (vi) bankruptcy or other insolvency events involving us or any of our subsidiaries; (vii) judgments against us or any of our subsidiaries, in excess of a threshold amount; (viii) certain ERISA events involving us or any of our subsidiaries, in excess of a threshold amount; (ix) a change in control (as defined in the credit facility); and (x) the invalidity of any of the loan documents or the failure of any of the collateral documents to create a lien on the collateral.

The credit facility also contains certain default provisions relating to Martin Resource Management Corporation. If Martin Resource Management Corporation no longer controls our general partner, the lenders under the credit facility may declare all amounts outstanding thereunder immediately due and payable. In addition, an event of default by Martin Resource Management Corporation under its credit facility could independently result in an event of default under our credit facility if it is deemed to have a material adverse effect on us.

If an event of default relating to bankruptcy or other insolvency events occurs with respect to us or any of our subsidiaries, all indebtedness under our credit facility will immediately become due and payable. If any other event of default exists under our credit facility, the lenders may terminate their commitments to lend us money, accelerate the maturity of the indebtedness outstanding under the credit facility and exercise other rights and remedies. In addition, if any event of default exists under our credit facility, the lenders may commence foreclosure or other actions against the collateral.

Capital Resources and Liquidity

Historically, we have generally satisfied our working capital requirements and funded our debt service obligations and capital expenditures with cash generated from operations and borrowings under our revolving credit facility.

At March 31, 2020, we had cash and cash equivalents of $0.1 million and available borrowing capacity of $46.2 million in additional amounts under our revolving credit facility with $170.0 million of borrowings outstanding.  Our revolving credit facility matures on August 31, 2023, or August 19, 2020 if our 2021 Notes have not been refinanced on or before such date. We are currently seeking to refinance the 2021 Notes, although no assurance can be given. 

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Upon the successful refinancing of the 2021 Notes, we expect that our primary sources of liquidity to meet operating expenses, service our indebtedness, pay distributions to our unitholders and fund capital expenditures will be provided by cash flows generated by our operations, borrowings under our revolving credit facility and access to the debt and equity capital markets.  Our ability to generate cash from operations will depend upon our future operating performance, which is subject to certain risks.   For a discussion of such risks, please read "Item 1A. Risk Factors" of our Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020, as updated and supplemented in Part II, Item 1A of this Quarterly Report on Form 10-Q, as may be further updated and supplemented from time to time in our future Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  In addition, due to the covenants in our revolving credit facility, our financial and operating performance impacts the amount we are permitted to borrow under that facility. 

To address these challenges, since July of 2018, we have taken a number of strategic actions to strengthen our balance sheet and reduce leverage, such as asset dispositions and acquisitions, reductions in the distributions payable to our unitholders and efforts to focus our growth on business segments with a stronger economic outlook. For example, in an effort to preserve liquidity, we recently reduced the quarterly cash distribution per common unit to $0.0625 beginning with the distribution payable for the fourth quarter of 2019.  We expect this distribution reduction, along with the reduction announced in 2019, to result in approximately $68.2 million in cash we can retain annually for debt reduction and investment in higher return opportunities.   

If we are unable to refinance the 2021 Notes and are unable to repay the outstanding borrowings under our revolving credit facility on August 19, 2020, we would be in default under our revolving credit facility.  An event of default under our revolving credit facility would allow the lenders to declare the balance outstanding thereunder due and payable in full, which could trigger cross-defaults under other agreements, which could also result in the acceleration of those obligations by the counterparties to those agreements.

We are in compliance with all debt covenants as of March 31, 2020 and expect to be in compliance for the next twelve months provided the Partnership successfully completes the refinancing of the 2021 Notes.

Interest Rate Risk

We are subject to interest rate risk on our credit facility due to the variable interest rate and may enter into interest rate swaps to reduce this variable rate risk.

Seasonality

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 and the refinery 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 our Terminalling and Storage and Transportation business segments.

Impact of Inflation

Inflation did not have a material impact on our results of operations for the three months ended March 31, 2020 or 2019.  Although the impact of inflation has been insignificant in recent years, it is still a factor in the U.S. economy and 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 could adversely affect our results of operations. Diesel fuel, natural gas, chemicals and other supplies are recorded in operating expenses.  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.

Environmental Matters

Our operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which these operations are conducted. We incurred no material environmental costs, liabilities or expenditures to mitigate or eliminate environmental contamination during the three months ended March 31, 2020 or 2019.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

Commodity Risk. The Partnership from time to time uses derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price.  We monitor and manage the commodity market risk associated with potential commodity risk exposure.  In addition, we focus on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction.     

We have entered into hedging transactions as of March 31, 2020 to protect a portion of our commodity price risk exposure. These hedging arrangements are in the form of swaps and options for NGLs. We have instruments totaling a gross notional quantity of 25,000 barrels settling during the month of April 2020. These instruments settle against the applicable pricing source for each grade and location. These instruments are recorded on our Consolidated and Condensed Balance Sheets at March 31, 2020 in "Fair value of derivatives" as a current asset of $0.002 million. Based on the current net notional volume hedged as of March 31, 2020, a $0.10 change in the expected settlement price of these contracts would result in an impact to our net income of approximately $0.1 million.

Interest Rate Risk. We are exposed to changes in interest rates as a result of our credit facility, which had a weighted-average interest rate of 3.93% as of March 31, 2020.  Based on the amount of unhedged floating rate debt owed by us on March 31, 2020, the impact of a 100 basis point increase in interest rates on this amount of debt would result in an increase in interest expense and a corresponding decrease in net income of approximately $1.7 million annually.

We are not exposed to changes in interest rates with respect to our 2021 Notes as these obligations are fixed rate.  The estimated fair value of the 2021 Notes was approximately $146.8 million as of March 31, 2020, based on market prices of similar debt at March 31, 2020. Market risk is estimated as the potential decrease in fair value of our long-term debt resulting from a hypothetical increase of a 100 basis point increase in interest rates. Such an increase in interest rates would result in approximately a $0.7 million decrease in the fair value of our long-term debt at March 31, 2020.

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Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures. In accordance with Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), we, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer of our general partner, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of our general partner concluded that our disclosure controls and procedures were effective, as of the end of the period covered by this report, to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

There were no changes in our internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are subject to certain legal proceedings claims and disputes that arise in the ordinary course of our business. Although we cannot predict the outcomes of these legal proceedings, we do not believe these actions, in the aggregate, will have a material adverse impact on our financial position, results of operations or liquidity. Information regarding legal proceedings is set forth in Note 14 in Part I of this Form 10-Q.

Item 1A. Risk Factors

Except as stated below, there have been no material changes to the Partnership's risk factors since our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020.

The reduction in demand for refined products resulting from measures taken to prevent the spread of the COVID-19 virus has and is likely to continue to adversely affect our results of operations, cash flows and financial condition for an indeterminate amount of time.

The markets have experienced a decline in oil prices in response to oil demand concerns due to the economic impacts of the COVID-19 pandemic, greatly impacting the demand for refined products resulting in a significant reduction in refinery utilization. As demand for our services and products decline, we could experience a reduction in the utilization of our assets. The continued spread of COVID-19 or a similar pandemic could result in further instability in the markets and decreases in commodity prices resulting in further adverse impacts on our results of operations, cash flows, and financial condition. In addition, the continued spread of the COVID-19 virus, or similar pandemic, and the continuation of the measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders, and shutdowns, may further impact our workforce and operations, the operations of our customers, and those of our vendors and suppliers. There is considerable uncertainty regarding such measures and potential future measures, which would have a material adverse effect on our results of operations, cash flows, and financial condition.

Item 6. Exhibits

The information required by this Item 6 is set forth in the Index to Exhibits accompanying this quarterly report and is incorporated herein by reference.

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INDEX TO EXHIBITS

Exhibit Number	Exhibit Name
3.1	Certificate of Limited Partnership of Martin Midstream Partners L.P. (the "Partnership"), dated June 21, 2002 (filed as Exhibit 3.1 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.2	Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated November 25, 2009 (filed as Exhibit 10.1 to the Partnership's Amendment to Current Report on Form 8-K/A (SEC File No. 000-50056), filed January 19, 2010, and incorporated herein by reference).
3.3	Amendment No. 2 to the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated January 31, 2011 (filed as Exhibit 3.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed February 1, 2011, and incorporated herein by reference).
3.4	Amendment No. 3 to the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated October 2, 2012 (filed as Exhibit 10.5 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed October 9, 2012, and incorporated herein by reference).
3.5	Certificate of Limited Partnership of Martin Operating Partnership L.P. (the "Operating Partnership"), dated June 21, 2002 (filed as Exhibit 3.3 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.6	Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated November 6, 2002 (filed as Exhibit 3.2 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed November 19, 2002, and incorporated herein by reference).
3.7	Certificate of Formation of Martin Midstream GP LLC (the "General Partner"), dated June 21, 2002 (filed as Exhibit 3.5 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.8	Amended and Restated Limited Liability Company Agreement of the General Partner, dated August 30, 2013 (filed as Exhibit 3.1 to the Partnership's Current Report on Form 8-K (Reg. No. 000-50056), filed September 3, 2013, and incorporated herein by reference).
3.9	Certificate of Formation of Martin Operating GP LLC (the "Operating General Partner"), dated June 21, 2002 (filed as Exhibit 3.7 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.10	Limited Liability Company Agreement of the Operating General Partner, dated June 21, 2002 (filed as Exhibit 3.8 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.11	Certificate of Formation of Arcadia Gas Storage, LLC, dated June 26, 2006 (filed as Exhibit 3.11 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.12	Company Agreement of Arcadia Gas Storage, LLC, dated December 27, 2006 (filed as Exhibit 3.12 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.13	Amendment to the Company Agreement of Arcadia Gas Storage, LLC, dated September 5, 2014 (filed as Exhibit 3.13 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.14	Certificate of Formation of Cadeville Gas Storage LLC, dated May 23, 2008 (filed as Exhibit 3.14 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.15	Limited Liability Company Agreement of Cadeville Gas Storage LLC, dated May 23, 2008 (filed as Exhibit 3.15 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.16	First Amendment to the Limited Liability Company Agreement of Cadeville Gas Storage LLC, dated April 16, 2012 (filed as Exhibit 3.16 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.17	Second Amendment to the Limited Liability Company Agreement of Cadeville Gas Storage LLC, dated September 5, 2014 (filed as Exhibit 3.17 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.18	Certificate of Formation of Monroe Gas Storage Company, LLC, dated June 14, 2006 (filed as Exhibit 3.18 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).

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3.19	Amended and Restated Limited Liability Company Agreement of Monroe Gas Storage Company, LLC, dated May 31, 2011 (filed as Exhibit 3.19 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.20	First Amendment to the Amended and Restated Limited Liability Company Agreement of Monroe Gas Storage Company, LLC, dated September 5, 2014 (filed as Exhibit 3.20 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.21	Certificate of Formation of Perryville Gas Storage LLC, dated May 23, 2008.(filed as Exhibit 3.21 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.22	Limited Liability Company Agreement of Perryville Gas Storage LLC, dated June 16, 2008 (filed as Exhibit 3.22 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.23	First Amendment to the Limited Liability Company Agreement of Perryville Gas Storage LLC, dated April 14, 2010 (filed as Exhibit 3.23 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.24	Second Amendment to the Limited Liability Company Agreement of Perryville Gas Storage LLC, dated September 5, 2014 (filed as Exhibit 3.24 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.25	Certificate of Formation of Cardinal Gas Storage Partners LLC, dated April 2, 2008 (filed as Exhibit 3.25 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.26	Third Amended and Restated Limited Liability Company Agreement of Cardinal Gas Storage Partners LLC (F/K/A Redbird Gas Storage LLC) dated October 27, 2014 (filed as Exhibit 3.26 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.27	Certificate of Formation of Redbird Gas Storage LLC, dated May 24, 2011 (filed as Exhibit 3.27 to the Partnership's Annual Report on Form 10-K (SEC File No. 000-50056), filed March 2, 2015, and incorporation herein by reference).
3.28	Second Amended and Restated LLC Agreement of Redbird Gas Storage LLC, dated as of October 2, 2012. (filed as Exhibit 10.6 to the Partnership's Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed November 5, 2012, and incorporated herein by reference).
3.29	Certificate of Merger of Cardinal Gas Storage Partners LLC with and into Redbird Gas Storage LLC, dated October 27, 2014 (filed as Exhibit 3.27 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
10.1	Tenth Amendment to Third Amended and Restated Credit Agreement, executed as of March 2, 2020, by and among Martin Operating Partnership L.P., a ‎Delaware limited partnership, as borrower, Martin Midstream ‎Partners L.P., a Delaware limited partnership, the other Loan Parties party t‎hereto, the Lenders party thereto, and Royal Bank Of Canada, as ‎administrative agent and collateral agent for the Lenders and as an ‎L/C Issuer and a Lender (filed as Exhibit 10.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed March 6, 2020, and incorporated herein by reference).‎
31.1*	Certifications of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be "filed."
32.2*	Certification of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be "filed."
101	Interactive Data: the following financial information from Martin Midstream Partners L.P.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020, formatted in Extensible Business Reporting Language: (1) the Consolidated and Condensed Balance Sheets; (2) the Consolidated and Condensed Statements of Income; (3) the Consolidated and Condensed Statements of Cash Flows; (4) the Consolidated and Condensed Statements of Capital; and (5) the Notes to Consolidated and Condensed Financial Statements.

* Filed or furnished herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

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	Martin Midstream Partners L.P.
	By:	Martin Midstream GP LLC
		Its General Partner
Date: 5/11/2020	By:	/s/ Robert D. Bondurant
		Robert D. Bondurant
		Executive Vice President, Treasurer, Chief Financial Officer, and Principal Accounting Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to 17 CFR 240.13a-14(a)/15d-14(a)

(Section 302 of the Sarbanes-Oxley Act of 2002)

I, Ruben S. Martin, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Martin Midstream Partners L.P.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 5/11/2020

/s/ Ruben S. Martin

Ruben S. Martin, President and

Chief Executive Officer of

Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to 17 CFR 240.13a-14(a)/15d-14(a)

(Section 302 of the Sarbanes-Oxley Act of 2002)

I, Robert D. Bondurant, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Martin Midstream Partners L.P.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 5/11/2020

/s/ Robert D. Bondurant

Robert D. Bondurant, Executive Vice President, Treasurer, Chief Financial Officer and Principal Accounting Officer of

Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C.  SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Quarterly Report of Martin Midstream Partners L.P., a Delaware limited partnership (the “Partnership”), on Form 10-Q for the quarter ended March 31, 2020, as filed with the Securities and Exchange Commission (the “Report”), I, Ruben S. Martin, Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that to my knowledge:

(1)          the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)          the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Ruben S. Martin

Ruben S. Martin,

Chief Executive Officer

of Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

May 11, 2020

*A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C.  SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Quarterly Report of Martin Midstream Partners L.P., a Delaware limited partnership (the “Partnership”), on Form 10-Q for the quarter ended March 31, 2020, as filed with the Securities and Exchange Commission (the “Report”), I, Robert D. Bondurant, Chief Financial Officer of Martin Midstream GP LLC, the general partner of the Partnership, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that to my knowledge:

(1)           the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)           the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Robert D. Bondurant

Robert D. Bondurant,

Chief Financial Officer

of Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

May 11, 2020

*A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

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Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Operating Leases
Operating lease right-of-use assets	$ 25,771	$ 23,901	$ 23,901
Current portion of operating lease liabilities included in Other accrued liabilities	8,358	7,722	7,722
Operating lease liabilities	17,810	16,656	16,656
Total operating lease liabilities	26,168		24,378
Finance Leases
Property, plant and equipment, at cost	13,163		14,058
Accumulated depreciation	(3,634)		(1,888)
Property, plant and equipment, net	9,529		12,170
Current installments of finance lease obligations	5,114	6,758	5,540
Finance lease obligations	526	717	4,886
Total finance lease obligations	$ 5,640	$ 7,475	$ 10,426

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Derivative Instruments and Hedging Activities - Narrative (Details) - bbl bbl in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Commodity contracts
Derivatives, Fair Value
Notional quantity (in bbl)	25	452

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Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income taxes	$ 347	$ 696

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Business Segments - Narratives (Details)	3 Months Ended
	Mar. 31, 2020 segment
Business Combinations [Abstract]
Number of reportable segments	4

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Subsequent Events (Details) - Subsequent Event	Apr. 22, 2020 $ / shares
Subsequent Event [Line Items]
Dividends declared (USD per share)	$ 0.0625
Estimated annualized dividends (USD per share)	$ 0.25

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Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management	3 Months Ended
	Mar. 31, 2020
Related Party Transaction
Automatic consecutive term renewal period (in years)	1 year
Termination written notice, minimum (in days)	60 days

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Divestitures and Discontinued Operations

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Divestitures and Discontinued Operations

DIVESTITURES AND DISCONTINUED OPERATIONS

Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of the Natural Gas Storage Assets to Hartree, a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of these assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership has concluded the disposition represents a strategic shift and will have a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the three months ended March 31, 2019.

The operating results, which are included in income from discontinued operations, were as follows:

	Three Months Ended March 31, 2019
Total revenues	$	10,934
Total costs and expenses and other, net, excluding depreciation and amortization	(5,751		)
Depreciation and amortization	(4,081		)
Income from discontinued operations before income taxes	1,102
Income tax expense	—
Income from discontinued operations, net of income taxes	$	1,102

Long-Lived Assets Held for Sale

At December 31, 2019, certain terminalling and storage and transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets in the table below. These assets are considered non-core assets to the Partnership's operations and did not qualify for discontinued operations presentation under the guidance of ASC 205-20.

	March 31, 2020		December 31, 2019
Terminalling and storage	$	—	$	3,552
Transportation	—		1,500
Assets held for sale	$	—	$	5,052

In the first quarter of 2020, the Partnership identified a triggering event related to a decline in the fair value related to the assets classified as held for sale at December 31, 2019. As a result, an impairment charge of $3,052 and $1,300 was recorded in the Terminalling and Storage and Transportation segments, respectively, in the first quarter of 2020 and was recorded in "Other operating income (loss)" in the Partnership's Consolidated and Condensed Statements of Operations. At March 31, 2020, the assets previously classified as held for sale no longer met the criteria to be classified as held for sale in accordance with ASC 360-10.

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Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

LEASES

The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee.

Operating lease Right-of-Use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin.

Our leases have remaining lease terms of 1 year to 17 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option.

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
	2020		2019
Operating lease cost	$	6,296	$	5,177
Finance lease cost:
Amortization of right-of-use assets	589		622
Interest on lease liabilities	110		183
Short-term lease cost	3,423		2,551
Total lease cost	$	10,418	$	8,533

Supplemental balance sheet information related to leases was as follows:

	Three Months Ended March 31,
	2020			2019
Operating Leases
Operating lease right-of-use assets	$	25,771		$	23,901
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	8,358		$	7,722
Operating lease liabilities	17,810			16,656
Total operating lease liabilities	$	26,168		$	24,378
Finance Leases
Property, plant and equipment, at cost	$	13,163		$	14,058
Accumulated depreciation	(3,634		)	(1,888		)
Property, plant and equipment, net	$	9,529		$	12,170
Current installments of finance lease obligations	$	5,114		$	5,540
Finance lease obligations	526			4,886
Total finance lease obligations	$	5,640		$	10,426

The Partnership’s future minimum lease obligations as of March 31, 2020 consist of the following:

	Operating Leases			Finance Leases
Year 1	$	9,519		$	5,307
Year 2	7,113			336
Year 3	4,379			213
Year 4	1,978			—
Year 5	1,115			—
Thereafter	6,564			—
Total	$	30,668		$	5,856
Less amounts representing interest costs	(4,500		)	(216		)
Total lease liability	$	26,168		$	5,640

The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of March 31, 2020 are as follows: 2020 - $14,386; 2021 - $14,019; 2022 - $13,004; 2023 - $12,609; 2024 - $12,609; subsequent years - $49,414.

Leases

LEASES

The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee.

Operating lease Right-of-Use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin.

Our leases have remaining lease terms of 1 year to 17 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option.

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
	2020		2019
Operating lease cost	$	6,296	$	5,177
Finance lease cost:
Amortization of right-of-use assets	589		622
Interest on lease liabilities	110		183
Short-term lease cost	3,423		2,551
Total lease cost	$	10,418	$	8,533

Supplemental balance sheet information related to leases was as follows:

	Three Months Ended March 31,
	2020			2019
Operating Leases
Operating lease right-of-use assets	$	25,771		$	23,901
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	8,358		$	7,722
Operating lease liabilities	17,810			16,656
Total operating lease liabilities	$	26,168		$	24,378
Finance Leases
Property, plant and equipment, at cost	$	13,163		$	14,058
Accumulated depreciation	(3,634		)	(1,888		)
Property, plant and equipment, net	$	9,529		$	12,170
Current installments of finance lease obligations	$	5,114		$	5,540
Finance lease obligations	526			4,886
Total finance lease obligations	$	5,640		$	10,426

The Partnership’s future minimum lease obligations as of March 31, 2020 consist of the following:

	Operating Leases			Finance Leases
Year 1	$	9,519		$	5,307
Year 2	7,113			336
Year 3	4,379			213
Year 4	1,978			—
Year 5	1,115			—
Thereafter	6,564			—
Total	$	30,668		$	5,856
Less amounts representing interest costs	(4,500		)	(216		)
Total lease liability	$	26,168		$	5,640

The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of March 31, 2020 are as follows: 2020 - $14,386; 2021 - $14,019; 2022 - $13,004; 2023 - $12,609; 2024 - $12,609; subsequent years - $49,414.

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Unit Based Awards

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Unit Based Awards

UNIT BASED AWARDS

The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated and condensed financial statements in accordance with certain provisions of ASC 718. Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:

	Three Months Ended March 31,
	2020		2019
Employees	$	301	$	329
Non-employee directors	45		23
Total unit-based compensation expense	$	346	$	352

All of the Partnership's outstanding awards at March 31, 2020 met the criteria to be treated under equity classification.

Long-Term Incentive Plans

      The Partnership's general partner has a long-term incentive plan for employees and directors of the general partner and its affiliates who perform services for the Partnership.

On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan (the "2017 LTIP"). The plan currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The plan is administered by the compensation committee of the general partner’s board of directors (the "Compensation Committee").

 A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the plan containing such terms as the Compensation Committee shall determine under the plan. With respect to time-based restricted units ("TBRU's"), the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("Performance Based Restricted Units" or "PBRU's"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRU's are earned only upon our achievement of an objective performance measure for the performance period. PBRU's which vest are payable in common units.  Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement.

The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally vest in equal annual installments over three years of service.

In February 2020, the Partnership issued 27,000 TBRU's to each of the Partnership's three independent directors under the 2017 LTIP.  These restricted common units vest in equal installments of 6,750 units on January 24, 2021, 2022, 2023, and 2024.

On March 1, 2018, the Partnership issued 301,550 TBRU's and 317,925 PBRU's to certain employees of Martin Resource Management Corporation. The TBRU's vest in equal installments over a three-year service period. The PBRU's will vest at the conclusion of a three-year performance period based on certain performance targets. In addition, the PBRU's awarded on March 1, 2018 that are achieved will only vest if the grantee is employed by Martin Resource Management Corporation on March 31, 2021. As of March 31, 2020, the Partnership is unable to ascertain if certain performance conditions will be achieved and, as such, has not recognized compensation expense for the vesting of the units. The Partnership will record

compensation expense for the vested portion of the units once the achievement of the performance condition is deemed probable.

The restricted units are valued at their fair value at the date of grant which is equal to the market value of common units on such date. A summary of the restricted unit activity for the three months ended March 31, 2020 is provided below:

	Number of Units			Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period	379,019			$	13.91
Granted (TBRU)	81,000			$	2.53
Vested	(101,128		)	$	13.95
Forfeited	(84,134		)	$	13.90
Non-Vested, end of period	274,757			$	10.54
Aggregate intrinsic value, end of period	$	302

A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three months ended March 31, 2020 and 2019 is provided below:

	Three Months Ended March 31,
	2020		2019
Aggregate intrinsic value of units vested	$	151	$	1,351
Fair value of units vested	1,427		1,551

As of March 31, 2020, there was $1,613 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 1.51 years.

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Unit Based Awards (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Compensation Costs Related to Unit Based Plan

Amounts recognized in selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:

	Three Months Ended March 31,
	2020		2019
Employees	$	301	$	329
Non-employee directors	45		23
Total unit-based compensation expense	$	346	$	352

Summary of Restricted Unit Activity

A summary of the restricted unit activity for the three months ended March 31, 2020 is provided below:

	Number of Units			Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period	379,019			$	13.91
Granted (TBRU)	81,000			$	2.53
Vested	(101,128		)	$	13.95
Forfeited	(84,134		)	$	13.90
Non-Vested, end of period	274,757			$	10.54
Aggregate intrinsic value, end of period	$	302

Summary of Aggregate Intrinsic Value and Fair Value of Units Vested

A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the three months ended March 31, 2020 and 2019 is provided below:

	Three Months Ended March 31,
	2020		2019
Aggregate intrinsic value of units vested	$	151	$	1,351
Fair value of units vested	1,427		1,551

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Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Components of Lease Expense

The components of lease expense for the three months ended March 31, 2020 and 2019 were as follows:

	Three Months Ended March 31,
	2020		2019
Operating lease cost	$	6,296	$	5,177
Finance lease cost:
Amortization of right-of-use assets	589		622
Interest on lease liabilities	110		183
Short-term lease cost	3,423		2,551
Total lease cost	$	10,418	$	8,533

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases was as follows:

	Three Months Ended March 31,
	2020			2019
Operating Leases
Operating lease right-of-use assets	$	25,771		$	23,901
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	8,358		$	7,722
Operating lease liabilities	17,810			16,656
Total operating lease liabilities	$	26,168		$	24,378
Finance Leases
Property, plant and equipment, at cost	$	13,163		$	14,058
Accumulated depreciation	(3,634		)	(1,888		)
Property, plant and equipment, net	$	9,529		$	12,170
Current installments of finance lease obligations	$	5,114		$	5,540
Finance lease obligations	526			4,886
Total finance lease obligations	$	5,640		$	10,426

Schedule of Future Minimum Lease Obligations, Finance Lease

The Partnership’s future minimum lease obligations as of March 31, 2020 consist of the following:

	Operating Leases			Finance Leases
Year 1	$	9,519		$	5,307
Year 2	7,113			336
Year 3	4,379			213
Year 4	1,978			—
Year 5	1,115			—
Thereafter	6,564			—
Total	$	30,668		$	5,856
Less amounts representing interest costs	(4,500		)	(216		)
Total lease liability	$	26,168		$	5,640

Schedule of Future Minimum Lease Obligations, Operating Leases

The Partnership’s future minimum lease obligations as of March 31, 2020 consist of the following:

	Operating Leases			Finance Leases
Year 1	$	9,519		$	5,307
Year 2	7,113			336
Year 3	4,379			213
Year 4	1,978			—
Year 5	1,115			—
Thereafter	6,564			—
Total	$	30,668		$	5,856
Less amounts representing interest costs	(4,500		)	(216		)
Total lease liability	$	26,168		$	5,640

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Fair Value Measurements

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 2
	March 31, 2020		December 31, 2019
Commodity derivative contracts, net	$	2	$	(667	)

The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

• Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments.

• Current and noncurrent portion of long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the 2021 Notes is considered Level 1, as the fair value is based on quoted market prices in active markets.

	March 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Notes	$	364,124	$	146,825	$	373,374	$	343,470

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New Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTS

During the first quarter of 2020, the Partnership adopted Accounting Standards Update (“ASU”) 2016-13, "Financial Instruments - Credit Losses," which required the Partnership to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements.

Fair Value Measurements

The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data.

Fair Value of Financial Instruments

The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

• Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments.

•

Current and noncurrent portion of long-term debt: The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The Partnership has not had any indicators which represent a change in the market spread associated with its variable interest rate debt. The estimated fair value of the 2021 Notes is considered Level 1, as the fair value is based on quoted market prices in active markets.

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Revenue - Estimated Revenue Expected to be Recognized in Future (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 558,011
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 38,835
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 48,639
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 43,614
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 43,780
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 43,829
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 339,314
Revenue, remaining performance obligation, expected timing of satisfaction, period
Terminalling and storage segment | Terminalling and storage
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 541,064
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 34,599
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 43,273
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 40,394
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 41,605
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 42,854
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 338,339
Revenue, remaining performance obligation, expected timing of satisfaction, period
Sulfur services segment | Sulfur product sales
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 16,947
Sulfur services segment | Sulfur product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 4,236
Revenue, remaining performance obligation, expected timing of satisfaction, period	9 months
Sulfur services segment | Sulfur product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 5,366
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 3,220
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 2,175
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 975
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur product sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 975
Revenue, remaining performance obligation, expected timing of satisfaction, period

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Divestitures and Discontinued Operations - Narratives (Details) $ in Thousands, ft³ in Billions	3 Months Ended
	Mar. 31, 2020 USD ($)	Jun. 28, 2019 USD ($) ft³
Terminalling and storage
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of assets classified as held for sale	$ 3,052
Transportation
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of assets classified as held for sale	$ 1,300
Discontinued Operations, Disposed of by Sale | Natural Gas Storage Assets
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Natural gas storage (in cubic feet) | ft³		50
Proceeds from sale of assets		$ 210,067

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Partners' Capital - Incentive Distribution Rights and Distributions of Available Cash (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Limited Partners' Capital Account
Distribution period	45 days
MMGP
Limited Partners' Capital Account
Incentive distribution	$ 0	$ 0
MMGP | Target Level 1
Limited Partners' Capital Account
Target cash distribution, percent	2.00%
MMGP | Target Level 2
Limited Partners' Capital Account
Target cash distribution, percent	15.00%
Target cash distribution (USD per share)	$ 0.625
MMGP | Target Level 3
Limited Partners' Capital Account
Target cash distribution, percent	25.00%
Target cash distribution (USD per share)	$ 0.75
MMGP | Target Level 4
Limited Partners' Capital Account
Target cash distribution, percent	50.00%
Minimum | MMGP | Target Level 1
Limited Partners' Capital Account
Target cash distribution (USD per share)	$ 0.50
Minimum | MMGP | Target Level 2
Limited Partners' Capital Account
Target cash distribution (USD per share)	0.55
Minimum | MMGP | Target Level 3
Limited Partners' Capital Account
Target cash distribution (USD per share)	0.625
Minimum | MMGP | Target Level 4
Limited Partners' Capital Account
Target cash distribution (USD per share)	0.75
Maximum | MMGP | Target Level 1
Limited Partners' Capital Account
Target cash distribution (USD per share)	$ 0.55
Martin Operating Partnership L.P. | MMGP
Limited Partners' Capital Account
General partner interest percentage	2.00%

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CONSOLIDATED AND CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Assets
Cash	$ 68	$ 2,856
Accounts and other receivables, less allowance for doubtful accounts of $498 and $532, respectively	59,073	87,254
Inventories	46,830	62,540
Due from affiliates	15,100	17,829
Fair value of derivatives	2	0
Other current assets	6,396	5,833
Assets held for sale	0	5,052
Total current assets	127,469	181,364
Property, plant and equipment, at cost	893,619	884,728
Accumulated depreciation	(479,301)	(467,531)
Property, plant and equipment, net	414,318	417,197
Goodwill	17,705	17,705
Right-of-use assets	25,771	23,901
Deferred income taxes, net	23,136	23,422
Other assets, net	3,800	3,567
Total assets	612,199	667,156
Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations	369,238	6,758
Trade and other accounts payable	52,713	64,802
Product exchange payables	4,772	4,322
Due to affiliates	1,304	1,470
Income taxes payable	605	472
Fair value of derivatives	0	667
Other accrued liabilities	20,282	28,789
Total current liabilities	448,914	107,280
Long-term debt, net	165,543	569,788
Finance lease obligations	526	717
Operating lease liabilities	17,810	16,656
Other long-term obligations	8,907	8,911
Total liabilities	641,700	703,352
Commitments and contingencies
Partners’ capital (deficit)	(29,501)	(36,196)
Total partners’ capital (deficit)	(29,501)	(36,196)
Total liabilities and partners' capital (deficit)	$ 612,199	$ 667,156

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CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - Related Party Transactions - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Revenues:
Revenues		$ 198,883	$ 240,033
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		108,810	152,757
Expenses:
Operating expenses		21,771	22,536
Selling, general and administrative		8,312	8,535
Terminalling and storage
Revenues:
Revenues	[1]	20,474	23,104
Transportation
Revenues:
Revenues	[1]	38,941	37,795
Product Sales
Revenues:
Revenues	[1]	136,553	176,275
Sulfur services
Revenues:
Revenues		25,408	28,734
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	15,295	19,696
Terminalling and storage
Revenues:
Revenues		28,934	31,067
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	23,680	26,871
Related Party
Expenses:
Operating expenses		21,771	22,536
Related Party | Terminalling and storage
Revenues:
Revenues		15,874	18,972
Related Party | Transportation
Revenues:
Revenues		5,894	5,643
Related Party | Product Sales
Revenues:
Revenues		92	421
Related Party | Sulfur services
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		2,767	2,574
Related Party | Terminalling and storage
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		$ 5,777	$ 5,909

[1] Related Party Transactions Included Above   Three Months Ended   March 31,   2020   2019 Revenues:*       Terminalling and storage $ 15,874
  $ 18,972
Transportation 5,894
  5,643
Product Sales 92
  421
Costs and expenses:*       Cost of products sold: (excluding depreciation and amortization)       Sulfur services 2,767
  2,574
Terminalling and storage 5,777
  5,909
Expenses:       Operating expenses 21,771
  22,536
Selling, general and administrative 8,312
  8,535

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Unit Based Awards - Restricted Unit Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Restricted Units
Number of Units
Non-vested, beginning of period, number of units (in shares) | shares	379,019
Vested, number of units (in shares) | shares	(101,128)
Forfeited, number of units (in shares) | shares	(84,134)
Non-vested, end of period, number of units (in shares) | shares	274,757
Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period, weighted average grant-date fair value per unit (USD per share) | $ / shares	$ 13.91
Vested, weighted average grant-date fair value per unit (USD per share) | $ / shares	13.95
Forfeited, weighted average grant-date fair value per unit (USD per share) | $ / shares	13.90
Non-vested, end of period, weighted average grant-date fair value per unit (USD per share) | $ / shares	$ 10.54
Aggregate intrinsic value, end of period | $	$ 302
Time Based Restricted Units
Number of Units
Granted, number of units (in shares) | shares	81,000
Weighted Average Grant-Date Fair Value Per Unit
Granted, weighted average grant-date fair value per unit (USD per share) | $ / shares	$ 2.53

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Related Party Transactions - Master Transportation Services Agreement (Details)	3 Months Ended
	Mar. 31, 2020
Master Transportation Services Agreement | Martin Resource Management
Related Party Transaction
Termination written notice, minimum (in days)	30 days

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITTMENTS AND CONTINGENCIES

Contingencies

From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business.  In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership.

On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil.  The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct.  Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations.  The lawsuits against the customer have been transferred to the United States

District Court for the Western District of Missouri for consolidated pretrial proceedings.  On March 1, 2017, at the request of the parties, the Chancery Court of Davidson County, Tennessee administratively closed the Partnership's lawsuit pending rulings in the United States District Court for the Western District of Missouri.  In the event that either party moves the Chancery Court of Davidson County, Tennessee to reopen the case, we expect the Court would grant such motion and reopen the case.  Further, the same customer has made a claim under the Partnership’s insurance policy.  The insurer has denied the claim.  However, in the event that the customer is successful in pursuing the claim, such action would negatively impact the Partnership because the Partnership has certain reimbursement obligations it would owe the insurance company.  If the case is reopened or the insurance claim by the customer is successful, we are currently unable to determine the exposure we may have in this matter, if any.

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Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTSQuarterly Distribution. On April 22, 2020, the Partnership declared a quarterly cash distribution of $0.0625 per common unit for the first quarter of 2020, or $0.25 per common unit on an annualized basis, which will be paid on May 15, 2020 to unitholders of record as of May 8, 2020.

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Revenue - Estimated Revenue Expected to be Recognized in Future Total (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 558,011
Terminalling and storage | Terminalling and storage
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	541,064
Sulfur services segment | Sulfur product sales
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 16,947

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Divestitures and Discontinued Operations - Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income from discontinued operations, net of income taxes	$ 0	$ 1,102
Natural Gas Storage Assets | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total revenues		10,934
Total costs and expenses and other, net, excluding depreciation and amortization		(5,751)
Depreciation and amortization		(4,081)
Income from discontinued operations before income taxes		1,102
Income tax expense		0
Income from discontinued operations, net of income taxes		$ 1,102

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Related Party Transactions - Omnibus Agreement (Details) - Omnibus Agreement - Martin Resource Management - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Related Party Transaction
Noncompete restriction threshold	$ 5,000,000
Noncompete restriction ownership option opportunity threshold minimum	5,000,000
Noncompete restriction ownership option opportunity threshold minimum with equity limitation	$ 5,000,000
Equity limitation on ownership restriction percentage	20.00%
Approved annual reimbursements for indirect expenses			$ 16,410,000
Indirect expenses reimbursed	$ 4,103,000	$ 4,164,000

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Partners' Capital - Narrative (Details)	3 Months Ended
	Mar. 31, 2020 shares
Limited Partners' Capital Account
Common limited partner units (in shares)	38,852,507
Martin Resource Management Corporation | Martin Resource Management
Limited Partners' Capital Account
Voting interest percentage	51.00%
Martin Resource Management
Limited Partners' Capital Account
Common limited partner units (in shares)	6,114,532
Voting interest percentage	15.70%
Martin Resource Management Corporation
Limited Partners' Capital Account
Ownership interest (percentage)	98.00%
MMGP LLC
Limited Partners' Capital Account
General partner interest percentage	2.00%
MMGP LLC | Martin Resource Management
Limited Partners' Capital Account
Ownership interest (percentage)	15.70%
General partner interest percentage	2.00%

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CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 498	$ 532

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CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Increase (Decrease) in Partners' Capital
Beginning balance	$ (36,196)	$ 288,432
Net (loss) income	8,815	(3,656)
Issuance of restricted units	0	0
Forfeiture of restricted units	0	0
Cash distributions	(2,457)	(19,613)
Unit-based compensation	346	352
Purchase of treasury units	(9)	(392)
Excess purchase price over carrying value of acquired assets		(102,393)
Deferred taxes on acquired assets and liabilities		24,781
Contribution to parent		(23,720)
Ending balance	(29,501)	163,791
Common Limited
Increase (Decrease) in Partners' Capital
Beginning balance	$ (38,342)	$ 258,085
Beginning balance (in shares)	38,863,389	39,032,237
Net (loss) income	$ 8,639	$ (3,583)
Issuance of restricted units (in shares)	81,000	16,944
Forfeiture of restricted units (in shares)	(84,134)	(118,087)
Cash distributions	$ (2,408)	$ (19,221)
Unit-based compensation	346	352
Purchase of treasury units	$ (9)	$ (392)
Purchase of treasury units (in shares)	(7,748)	(31,504)
Excess purchase price over carrying value of acquired assets		$ (102,393)
Deferred taxes on acquired assets and liabilities		24,781
Ending balance	$ (31,774)	$ 157,629
Ending balance (in shares)	38,852,507	38,899,590
General Partner
Increase (Decrease) in Partners' Capital
Beginning balance	$ 2,146	$ 6,627
Net (loss) income	176	(73)
Cash distributions	(49)	(392)
Ending balance	2,273	6,162
Parent Net Investment
Increase (Decrease) in Partners' Capital
Beginning balance	0	23,720
Contribution to parent		(23,720)
Ending balance	$ 0	$ 0

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Unit Based Awards - Narrative (Details) $ in Thousands					1 Months Ended	3 Months Ended
	Jan. 24, 2023 shares	Jan. 24, 2022 shares	Jan. 24, 2021 shares	Mar. 01, 2018 shares	Feb. 29, 2020 director shares	Mar. 31, 2020 USD ($) shares	May 26, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)							3,000,000
Restricted Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, number of units (in shares)						101,128
Unrecognized compensation cost related to non-vested restricted units | $						$ 1,613
Weighted average period for recognition (in years)						1 year 6 months 3 days
Restricted Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						3 years
Restricted Units | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						4 years
Time Based Restricted Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						3 years
Granted, number of units (in shares)						81,000
Number of independent directors receiving grants | director					3
Time Based Restricted Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of units (in shares)				301,550
Time Based Restricted Units | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of units (in shares)					27,000
Performance Based Restricted Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)						3 years
Performance Based Restricted Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of units (in shares)				317,925
Scenario, Forecast | Time Based Restricted Units | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, number of units (in shares)	6,750	6,750	6,750

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Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating lease cost	$ 6,296	$ 5,177
Finance lease cost:
Amortization of right-of-use assets	589	622
Interest on lease liabilities	110	183
Short-term lease cost	3,423	2,551
Total lease cost	$ 10,418	$ 8,533

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Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Asset Retirement Obligation, Roll Forward Analysis
Beginning asset retirement obligations	$ 8,936
Additions to asset retirement obligations	379
Accretion expense	102
Liabilities settled	(510)
Ending asset retirement obligations	8,907
Current portion of asset retirement obligations	0	$ (25)
Long-term portion of asset retirement obligations	$ 8,907

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Business Segments - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 198,883	$ 240,033
Depreciation and Amortization	15,239	14,901
Operating Income (Loss) after Eliminations	15,600	9,606
Capital Expenditures and Plant Turnaround Costs	10,761	10,299
Terminalling and storage
Segment Reporting Information [Line Items]
Total revenue	49,408	54,171
Depreciation and Amortization	7,456	7,837
Operating Income (Loss) after Eliminations	758	4,815
Capital Expenditures and Plant Turnaround Costs	3,745	5,345
Transportation
Segment Reporting Information [Line Items]
Total revenue	38,941	37,795
Depreciation and Amortization	4,280	3,570
Operating Income (Loss) after Eliminations	(5,021)	(3,880)
Capital Expenditures and Plant Turnaround Costs	3,926	2,461
Sulfur services
Segment Reporting Information [Line Items]
Total revenue	28,323	31,593
Depreciation and Amortization	2,894	2,868
Operating Income (Loss) after Eliminations	13,858	6,380
Capital Expenditures and Plant Turnaround Costs	2,985	2,206
Natural gas liquids
Segment Reporting Information [Line Items]
Total revenue	82,211	116,474
Depreciation and Amortization	609	626
Operating Income (Loss) after Eliminations	10,377	6,858
Capital Expenditures and Plant Turnaround Costs	105	287
Operating Revenues
Segment Reporting Information [Line Items]
Total revenue	206,859	249,145
Operating Revenues | Terminalling and storage
Segment Reporting Information [Line Items]
Total revenue	51,134	55,892
Operating Revenues | Transportation
Segment Reporting Information [Line Items]
Total revenue	45,174	45,186
Operating Revenues | Sulfur services
Segment Reporting Information [Line Items]
Total revenue	28,336	31,593
Operating Revenues | Natural gas liquids
Segment Reporting Information [Line Items]
Total revenue	82,215	116,474
Intersegment Revenues Eliminations
Segment Reporting Information [Line Items]
Total revenue	(7,976)	(9,112)
Intersegment Revenues Eliminations | Terminalling and storage
Segment Reporting Information [Line Items]
Total revenue	(1,726)	(1,721)
Intersegment Revenues Eliminations | Transportation
Segment Reporting Information [Line Items]
Total revenue	(6,233)	(7,391)
Intersegment Revenues Eliminations | Sulfur services
Segment Reporting Information [Line Items]
Total revenue	(13)	0
Intersegment Revenues Eliminations | Natural gas liquids
Segment Reporting Information [Line Items]
Total revenue	(4)	0
Indirect selling, general and administrative
Segment Reporting Information [Line Items]
Depreciation and Amortization	0	0
Operating Income (Loss) after Eliminations	(4,372)	(4,567)
Capital Expenditures and Plant Turnaround Costs	$ 0	$ 0

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Related Party Transactions - Terminal Services Agreements (Details)	3 Months Ended
	Mar. 31, 2020
Terminal Services Agreements | Martin Resource Management
Related Party Transaction
Termination written notice, minimum (in days)	60 days

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Income Tax Contingency
Income tax expense	$ 347	$ 696
Effective income tax rate (percentage)	32.17%	24.79%
Current federal income tax expense	$ 133	$ 297
State income tax expense (benefit)	(72)	(218)
Deferred income tax expense	286	369
Deferred tax asset	23,136		$ 23,422
Martin Transport Inc
Income Tax Contingency
Income tax expense	$ 347	$ 448

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Partners' Capital

3 Months Ended

Mar. 31, 2020

Partners' Capital Notes [Abstract]

Partners' Capital

PARTNERS' CAPITAL

As of March 31, 2020, Partners’ capital consisted of 38,852,507 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owns 6,114,532 of the Partnership's common limited partner units representing approximately 15.7% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management Corporation controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of the Partnership's general partner.

The partnership agreement of the Partnership (the "Partnership Agreement") contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts.

Incentive Distribution Rights

MMGP holds a 2% general partner interest and certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement. The general partner was allocated no incentive distributions during the three months ended March 31, 2020 and 2019.

The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit.

Distributions of Available Cash

The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter.

Net Income per Unit

The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of income and losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations.

For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:

	Three Months Ended March 31,
	2020		2019
Continuing operations:
Income (loss) from continuing operations	$	8,815	$	(4,758	)
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	49		256
General partner interest in undistributed income (loss)	127		(351		)
Less income (loss) allocable to unvested restricted units	55		(3		)
Limited partners’ interest in net income (loss)	$	8,584	$	(4,660	)

	Three Months Ended March 31,
	2020		2019
Discontinued operations:
Income from discontinued operations	$	—	$	1,102
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	—		(59		)
General partner interest in undistributed income	—		81
Less income allocable to unvested restricted units	—		1
Limited partners’ interest in net income	$	—	$	1,079

The Partnership allocates the general partner's share of earnings between continuing and discontinued operations as a proportion of net income from continuing and discontinued operations to total net income.

The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:

	Three Months Ended March 31,
	2020	2019
Basic weighted average limited partner units outstanding	38,640,862	38,681,925
Dilutive effect of restricted units issued	3,605	—
Total weighted average limited partner diluted units outstanding	38,644,467	38,681,925

All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the periods presented. All common unit equivalents were antidilutive for the three months ended March 31, 2019 because the limited partners were allocated a net loss in this period.

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New Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTS

During the first quarter of 2020, the Partnership adopted Accounting Standards Update (“ASU”) 2016-13, "Financial Instruments - Credit Losses," which required the Partnership to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaced the existing incurred loss model and is applicable to the measurement of credit losses on financial assets, including trade receivables. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements.

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Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

DEBT

At March 31, 2020 and December 31, 2019, long-term debt consisted of the following:

	March 31, 2020			December 31, 2019
$400,000 Revolving credit facility at variable interest rate (3.93%1 weighted average at March 31, 2020), due August 20234 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $4,457 and $4,586, respectively2	$	165,543		$	196,414
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $599 and $770, respectively, including unamortized premium of $267 and $344, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, due February 2021, unsecured2,3,4,5	364,124			373,374
Total	529,667			569,788
Less: current portion	(364,124		)	—
Total long-term debt, net of current portion	$	165,543		$	569,788
Current installments of finance lease obligations	$	5,114		$	6,758
Finance lease obligations	526			717
Total finance lease obligations	$	5,640		$	7,475

¹ Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at March 31, 2020 and December 31, 2019 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.25% to 3.50% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.25% to 2.50%.  The applicable margin for existing LIBOR borrowings at March 31, 2020 is 3.25%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists.

² The Partnership is in compliance with all debt covenants as of March 31, 2020 and December 31, 2019, respectively.

³ The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

⁴ As of March 31, 2020, the Partnership’s 7.25% senior unsecured notes due 2021 (the "2021 Notes") were due within twelve months and have therefore been presented as a current liability on the Consolidated and Condensed Balance Sheets at March 31, 2020.  The Partnership's amended revolving credit facility includes a provision which accelerates the maturity date to August 19, 2020 if the 2021 Notes are not refinanced in a manner not prohibited by the facility. If the Partnership is unable to refinance the 2021 Notes and is unable to repay the outstanding borrowings under its revolving credit facility on August 19, 2020, the Partnership's ability to meet its obligations would be adversely affected. Failure to comply with this provision, if not waived, would result in an event of default under the Partnership's revolving credit facility, the potential acceleration of outstanding debt thereunder, and the potential foreclosure on the collateral securing such debt, and could cause a cross-default under other agreements, which could also result in the acceleration of those obligations by the counterparties to those agreements. The Partnership, with support from the Board of Directors, is actively pursuing a variety of strategic alternatives to strengthen the balance sheet and address near term maturities and accordingly, announced on April 6, 2020, the hiring of Stephens Inc. as a financial advisor to assist in the process. Pending the successful implementation of the refinancing, the conditions described above have raised substantial doubt about the Partnership’s ability to continue as a going concern.  The Partnership’s management is engaged in ongoing communication with credit providers and presently believes the measures being taken will enable the Partnership to successfully refinance the 2021 Notes and comply with covenants under its revolving credit facility, although no assurance can be given.

⁵ In March 2020, the Partnership repurchased on the open market an aggregate $9,344 of the 2021 Notes. These transactions resulted in a gain on retirement of $3,484.

The Partnership paid cash interest, net of capitalized interest, in the amount of $16,736 and $19,363 for the three months ended March 31, 2020 and 2019, respectively.  Capitalized interest was $4 and $2 for the three months ended March 31, 2020 and 2019, respectively.

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

The Impact of Related Party Transactions

The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Revenues:
Terminalling and storage	$	15,874	$	18,972
Transportation	5,894		5,643
Product sales:
Sulfur services	19		7
Terminalling and storage	73		414
	92		421
	$	21,860	$	25,036

The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Cost of products sold:
Sulfur services	$	2,767	$	2,574
Terminalling and storage	5,777		5,909
	$	8,544	$	8,483

The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Operating expenses:
Transportation	$	15,553	$	14,980
Natural gas liquids	497		2,025
Sulfur services	1,146		924
Terminalling and storage	4,575		4,607
	$	21,771	$	22,536

The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Selling, general and administrative:
Transportation	$	1,839	$	1,728
Natural gas liquids	704		1,189
Sulfur services	743		716
Terminalling and storage	838		717
Indirect, including overhead allocation	4,188		4,185
	$	8,312	$	8,535

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Supplemental Balance Sheet Information (Tables)

3 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Schedule of Other Accrued Liabilities

Components of "Other accrued liabilities" were as follows:

	March 31, 2020		December 31, 2019
Accrued interest	$	3,538	$	10,761
Asset retirement obligations	—		25
Property and other taxes payable	2,803		5,411
Accrued payroll	3,944		3,011
Operating lease liabilities	8,358		7,722
Other	1,639		1,859
	$	20,282	$	28,789

Schedule of Asset Retirement Obligations

The schedule below summarizes the changes in our asset retirement obligations:

	March 31, 2020
Beginning asset retirement obligations	$	8,936
Additions to asset retirement obligations	379
Accretion expense	102
Liabilities settled	(510		)
Ending asset retirement obligations	8,907
Current portion of asset retirement obligations1	—
Long-term portion of asset retirement obligations2	$	8,907

¹The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets.

²The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets.

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Related Party Transactions

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

As of March 31, 2020, Martin Resource Management Corporation owns 6,114,532 of the Partnership’s common units representing approximately 15.7% of the Partnership’s outstanding limited partner units.  Martin Resource Management Corporation controls the Partnership's general partner by virtue of its 51% voting interest in Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2% general partner interest in the Partnership and the Partnership’s IDRs.  The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management Corporation’s ownership as of March 31, 2020, effectively gives Martin Resource Management Corporation the ability to veto some of the Partnership’s actions and to control the Partnership’s management.

The following is a description of the Partnership’s material related party agreements and transactions:

Omnibus Agreement

       Omnibus Agreement.  The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management Corporation that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management Corporation and the Partnership’s use of certain Martin Resource Management Corporation trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation.

Non-Competition Provisions. Martin Resource Management Corporation has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of:

• providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants;

•providing land and marine transportation of petroleum products, by-products, and chemicals;

•distributing NGLs; and

•manufacturing and selling sulfur-based fertilizer products and other sulfur-related products.

This restriction does not apply to:

• the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates;

• any business operated by Martin Resource Management Corporation, including the following:

◦ distributing fuel oil, marine fuel and other liquids;

◦ providing marine bunkering and other shore-based marine services in Texas, Louisiana, Mississippi, Alabama, and Florida;

◦ operating a crude oil gathering business in Stephens, Arkansas;

◦ providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas;

◦ providing crude oil marketing and transportation from the well head to the end market;

◦ operating an environmental consulting company;

◦ supplying employees and services for the operation of the Partnership's business; and

◦ operating, solely for our account, the asphalt facilities in each of Hondo, South Houston and Port Neches, Texas and Omaha, Nebraska.

• any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of less than $5,000;

• any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of $5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the conflicts committee of the board of directors of the general partner of the Partnership (the "Conflicts Committee"); and

• any business that Martin Resource Management Corporation acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $5,000 or more and represents less than 20% of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business.

Services.  Under the Omnibus Agreement, Martin Resource Management Corporation provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management Corporation for direct expenses.  In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses.

Effective January 1, 2020, through December 31, 2020, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $16,410.  The Partnership reimbursed Martin Resource Management Corporation for $4,103 and $4,164 of indirect expenses for the three months ended March 31, 2020 and 2019, respectively.  The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.

These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management Corporation provides to the Partnership, 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 the Partnership shares with Martin Resource Management Corporation retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management Corporation’s services will terminate if Martin Resource Management Corporation ceases to control the general partner of the Partnership.

Related  Party Transactions. The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management Corporation without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management Corporation that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above.

License Provisions. Under the Omnibus Agreement, Martin Resource Management Corporation has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates.

Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management Corporation.  The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation.  Such amendments were approved by the Conflicts Committee.  The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management Corporation for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management Corporation.

Master Transportation Services Agreement

Master Transportation Agreement.  Martin Transport, Inc. ("MTI"), a wholly owned subsidiary of the Partnership, is a party to a master transportation services agreement effective January 1, 2019, with certain wholly owned subsidiaries of Martin Resource Management Corporation. Under the agreement, MTI agreed to transport Martin Resource Management Corporation's petroleum products and by-products.

Term and Pricing. The agreement will continue unless either party terminates the agreement by giving at least 30 days' written notice to the other party.  These rates are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list.

Indemnification.  MTI has agreed to indemnify Martin Resource Management Corporation against all claims arising out of the negligence or willful misconduct of MTI and its officers, employees, agents, representatives and subcontractors. Martin Resource Management Corporation has agreed to indemnify MTI against all claims arising out of the negligence or willful misconduct of Martin Resource Management Corporation and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of MTI and Martin Resource Management Corporation, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct.

Marine Agreements

Marine Transportation Agreement. The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management Corporation on a spot-contract basis at applicable market rates.  Effective each January 1, this agreement automatically renews for consecutive one year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management Corporation are based on applicable market rates.

Marine Fuel.  The Partnership is a party to an agreement with Martin Resource Management Corporation dated November 1, 2002, under which Martin Resource Management Corporation provides the Partnership with marine fuel from its locations in the Gulf of Mexico at a fixed rate in excess of the Platt’s U.S. Gulf Coast Index for #2 Fuel Oil.  Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management Corporation.

Terminal Services Agreements

Diesel Fuel Terminal Services Agreement.  Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution.  At such time, the per-gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index.  This agreement was further amended on January 1, 2017, October 1, 2017, and April 1, 2019 to modify its minimum throughput requirements and throughput fees. The term of this agreement is currently evergreen and it will continue on a month to month basis until terminated by either party by giving 60 days’ written notice.  

Miscellaneous Terminal Services Agreements.  The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index.

Other Agreements

 Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross.  The tolling agreement expires November 25, 2031.  Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel.  Any additional barrels are processed at a modified price per barrel.  In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement.   Further, certain capital improvements, to the extent requested by Cross, are reimbursed through a capital recovery fee.  As of December 31, 2019, annual capital recovery fee reimbursement of $2,088 expired. An additional $2,586 of capital recovery fee reimbursement will expire on December 31, 2020.  All of these fees (other than the fuel

surcharge and capital recovery fee) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period.  In addition, on the third, sixth and ninth anniversaries of the agreement, the parties can negotiate an upward or downward adjustment in the fees subject to their mutual agreement. Also, the Partnership renegotiated a crude transportation contract set to expire in the first half of 2022 resulting in a reduction in revenue of $2,145 annually beginning January 1, 2020.

Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management Corporation for the provision of other services or the purchase of other goods.

The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated and Condensed Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding captions of the consolidated and condensed financial statements and do not reflect a statement of profits and losses for related party transactions.

The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Revenues:
Terminalling and storage	$	15,874	$	18,972
Transportation	5,894		5,643
Product sales:
Sulfur services	19		7
Terminalling and storage	73		414
	92		421
	$	21,860	$	25,036

The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Cost of products sold:
Sulfur services	$	2,767	$	2,574
Terminalling and storage	5,777		5,909
	$	8,544	$	8,483

The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Operating expenses:
Transportation	$	15,553	$	14,980
Natural gas liquids	497		2,025
Sulfur services	1,146		924
Terminalling and storage	4,575		4,607
	$	21,771	$	22,536

The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended March 31,
	2020		2019
Selling, general and administrative:
Transportation	$	1,839	$	1,728
Natural gas liquids	704		1,189
Sulfur services	743		716
Terminalling and storage	838		717
Indirect, including overhead allocation	4,188		4,185
	$	8,312	$	8,535

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Condensed Consolidated Financial Information

3 Months Ended

Mar. 31, 2020

Consolidating Financial Statements [Abstract]

Condensed Consolidated Financial Information

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. Martin Operating Partnership L.P. (the "Operating Partnership"), the Partnership’s wholly-owned subsidiary, and the Partnership's other operating subsidiaries have issued in the past, and may issue in the future, unconditional guarantees of senior or subordinated debt securities of the Partnership. The guarantees that have been issued are full, irrevocable and unconditional

and joint and several. In addition, the Operating Partnership may also issue senior or subordinated debt securities which, if issued, will be fully, irrevocably and unconditionally guaranteed by the Partnership. Substantially all of the Partnership's operating subsidiaries are subsidiary guarantors of its 2021 Notes and any subsidiaries other than the subsidiary guarantors are minor.

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Divestitures and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The operating results, which are included in income from discontinued operations, were as follows:

	Three Months Ended March 31, 2019
Total revenues	$	10,934
Total costs and expenses and other, net, excluding depreciation and amortization	(5,751		)
Depreciation and amortization	(4,081		)
Income from discontinued operations before income taxes	1,102
Income tax expense	—
Income from discontinued operations, net of income taxes	$	1,102

Disclosure of Long Lived Assets Held-for-sale

At December 31, 2019, certain terminalling and storage and transportation assets met the criteria to be classified as held for sale in accordance with ASC 360-10 and are presented at the lower of the assets' carrying amount or fair value less cost to sell by segment in current assets in the table below. These assets are considered non-core assets to the Partnership's operations and did not qualify for discontinued operations presentation under the guidance of ASC 205-20.

	March 31, 2020		December 31, 2019
Terminalling and storage	$	—	$	3,552
Transportation	—		1,500
Assets held for sale	$	—	$	5,052

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Nature of Operations and Basis of Presentation

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States ("U.S.") Gulf Coast region. Its four primary business lines include:   terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil; land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and natural gas liquids marketing, distribution, and transportation services.

The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (the "SEC") on February 14, 2020.

Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated and condensed financial statements in conformity with U.S. GAAP.  Actual results could differ from those estimates.

Divestiture of Natural Gas Storage Assets. On June 28, 2019, the Partnership completed the sale of its membership interests in Arcadia Gas Storage, LLC, Cadeville Gas Storage LLC, Monroe Gas Storage Company, LLC and Perryville Gas Storage LLC (the "Natural Gas Storage Assets") to Hartree Cardinal Gas, LLC ("Hartree"), a subsidiary of Hartree Bulk Storage, LLC. The Natural Gas Storage Assets consist of approximately 50 billion cubic feet of working capacity located in northern Louisiana and Mississippi. In consideration of the sale of the Natural Gas Storage Assets, the Partnership received cash proceeds of $210,067 after transaction fees and expenses. The net proceeds were used to reduce outstanding borrowings under the Partnership's revolving credit facility. The Partnership concluded the disposition represented a strategic shift which had a major effect on its financial results going forward. As a result, the Partnership has presented the results of operations and cash flows relating to the Natural Gas Storage Assets as discontinued operations for the three months ended March 31, 2019. See Note 3 for more information.

Impact of COVID-19 Pandemic. A novel strain of coronavirus (“COVID-19”) surfaced in late 2019 and has spread around the world, including to the United States. In March 2020, the World Health Organization declared COVID-19 a pandemic. Due to the economic impacts of the COVID-19 pandemic, the markets have experienced a decline in oil prices in response to oil demand concerns. These concerns have been further exacerbated by the price war among members of the Organization of Petroleum Exporting Countries and other non-OPEC producer nations during the first quarter 2020 and global storage considerations. Travel restrictions and stay-at-home orders implemented by governments in many regions and countries across the globe, including the United States, have greatly impacted the demand for refined products resulting in a significant reduction in refinery utilization.

The COVID-19 pandemic has impacted the Partnership's 2020 performance to date, and the Partnership expects to continue to experience the impacts of COVID-19 throughout the remainder of 2020 as a result of continued reduction in refined product demand across the industries the Partnership serves. The extent to which the duration and severity of the pandemic impacts our business, results of operations, and financial condition, will depend on future developments, which are highly uncertain and cannot be predicted at this time. Accordingly, it is possible that the impact of the COVID-19 pandemic could have a material adverse effect on the Partnership's results of operations, financial position and cash flows for the year ended December 31, 2020, including the recoverability of long-lived assets and goodwill, the valuation of inventory, and the amount of expected credit losses.

Management considered the impact of the COVID-19 pandemic on the assumptions and estimates used in the preparation of the financial statements. Management identified triggering events requiring the performance of impairment testing of long-lived assets and goodwill related to both the performance the Partnership's unit price during the first quarter of 2020 and certain of the Partnership's businesses that are sensitive to reductions in refined product demand and refinery utilization. As a result, the Partnership recorded impairment charges of $4.4 million related to long-lived assets. See Note 3 for more information. No impairments were identified related to goodwill. A sustained reduction in refinery demand and utilization could lead to future asset impairments as well as adversely affect access to capital and financing to be able to meet future obligations. Management also assessed the extent to which the current macroeconomic events brought about by COVID-19 and significant declines in refined product demand impacted the valuation of expected credit losses on accounts receivable and certain inventory items or resulted in modifications to any significant contracts. Ultimately the results of these assessments did not have a material impact on the Partnership's results as of March 31, 2020.

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Partners' Capital - Net Income Per Unit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule of Reconciliation of Net Income from Continuing and Discontinuing Operations [Line Items]
Income (loss) from continuing operations	$ 8,815	$ (4,758)
Income from discontinued operations	0	1,102
Less general partner’s interest in net income (loss):
Less income (loss) allocable to unvested restricted units	55	(2)
Limited partners’ interest in net income (loss)	$ 8,584	$ (3,581)
Basic weighted average limited partner units outstanding (in shares)	38,640,862	38,681,925
Dilutive effect of restricted units issued (in shares)	3,605	0
Total weighted average limited partner diluted units outstanding (in shares)	38,644,467	38,681,925
Continuing operations
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	$ (49)	$ (256)
General partner interest in undistributed income (loss)	127	(351)
Less income (loss) allocable to unvested restricted units	55	(3)
Limited partners’ interest in net income (loss)	8,584	(4,660)
Discontinued operations
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	0	(59)
General partner interest in undistributed income (loss)	0	81
Less income (loss) allocable to unvested restricted units	0	1
Limited partners’ interest in net income (loss)	$ 0	$ 1,079

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 11, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	000-50056
Entity Registrant Name	MARTIN MIDSTREAM PARTNERS L.P.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0527861
Entity Address, Address Line One	4200 Stone Road
Entity Address, City or Town	Kilgore
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75662
City Area Code	903
Local Phone Number	983-6200
Title of each class	Common Units representing limited partnership interests
Trading Symbol(s)	MMLP
Name of each exchange on which registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		38,852,507
Entity Central Index Key	0001176334
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

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CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - Allocation of Net Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Limited partner interest:
Continuing operations	$ 8,584	$ (4,660)
Discontinued operations	0	1,079
Limited partners’ interest in net income (loss)	8,584	(3,581)
General partner interest:
Continuing operations	176	(95)
Discontinued operations	0	22
General partner interest in net income (loss)	$ 176	$ (73)
Basic:
Continuing operations (in dollars per share)	$ 0.22	$ (0.12)
Discontinued operations (in dollars per share)	0	0.03
Net income (loss) per unit attributable to limited partners, Basic (in dollars per share)	$ 0.22	$ (0.09)
Weighted average limited partner units - basic (in shares)	38,640,862	38,681,925
Diluted:
Continuing operations (in dollars per share)	$ 0.22	$ (0.12)
Discontinued operations (in dollars per share)	0	0.03
Net income (loss) per unit attributable to limited partners, Diluted (in dollars per share)	$ 0.22	$ (0.09)
Weighted average limited partner units - diluted (in shares)	38,644,467	38,681,925

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Unit Based Awards - Intrinsic and Fair Value (Details) - Restricted Units - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of units vested	$ 151	$ 1,351
Fair value of units vested	$ 1,427	$ 1,551

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Debt (Details) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2015	Apr. 30, 2014	Feb. 28, 2013
Debt Instrument
Total long-term debt	$ 529,667,000	$ 529,667,000		$ 569,788,000
Less: current portion	(364,124,000)	(364,124,000)		0
Total long-term debt, net of current portion	165,543,000	165,543,000		569,788,000
Current installments of long-term debt and finance lease obligations	5,114,000	5,114,000	$ 5,540,000	6,758,000
Finance lease obligations	526,000	526,000	4,886,000	717,000
Total finance lease obligations	5,640,000	5,640,000	10,426,000	7,475,000
Gain on retirement of senior unsecured notes		3,484,000	$ 0
Revolving Loan Facility
Debt Instrument
Total long-term debt	165,543,000	165,543,000		196,414,000
Face amount	$ 400,000,000	$ 400,000,000
Weighted average interest rate	3.93%	3.93%
Unamortized debt issuance costs	$ 4,457,000	$ 4,457,000		4,586,000
Revolving Loan Facility | LIBOR
Debt Instrument
Applicable margins		3.25%
Revolving Loan Facility | LIBOR | Minimum
Debt Instrument
Applicable margins		2.25%
Revolving Loan Facility | LIBOR | Maximum
Debt Instrument
Applicable margins		3.50%
Revolving Loan Facility | Prime Rate | Minimum
Debt Instrument
Applicable margins		1.25%
Revolving Loan Facility | Prime Rate | Maximum
Debt Instrument
Applicable margins		2.50%
Senior Notes | Senior Notes 7.25%
Debt Instrument
Total long-term debt	364,124,000	$ 364,124,000		373,374,000
Face amount	400,000,000	400,000,000				$ 150,000,000	$ 250,000,000
Unamortized debt issuance costs	$ 599,000	$ 599,000		770,000
Stated interest rate	7.25%	7.25%
Unamortized premium	$ 267,000	$ 267,000		$ 344,000
Repurchase amount	9,344,000	$ 9,344,000			$ 26,200,000
Gain on retirement of senior unsecured notes	$ 3,484,000

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Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues		$ 198,883	$ 240,033
Lubricant product sales
Disaggregation of Revenue [Line Items]
Revenues		28,934	31,067
Throughput and storage
Disaggregation of Revenue [Line Items]
Revenues	[1]	20,474	23,104
Natural gas liquids product sales
Disaggregation of Revenue [Line Items]
Revenues		82,211	116,474
Sulfur services
Disaggregation of Revenue [Line Items]
Revenues		2,915	2,859
Terminalling and storage segment
Disaggregation of Revenue [Line Items]
Revenues		49,408	54,171
Terminalling and storage segment | Lubricant product sales
Disaggregation of Revenue [Line Items]
Revenues		28,934	31,067
Terminalling and storage segment | Throughput and storage
Disaggregation of Revenue [Line Items]
Revenues		20,474	23,104
Natural gas liquids segment
Disaggregation of Revenue [Line Items]
Revenues		82,211	116,474
Natural gas liquids segment | Natural gas liquids product sales
Disaggregation of Revenue [Line Items]
Revenues		82,211	116,474
Sulfur services segment
Disaggregation of Revenue [Line Items]
Revenues		28,323	31,593
Sulfur services segment | Sulfur product sales
Disaggregation of Revenue [Line Items]
Revenues		6,481	9,952
Sulfur services segment | Fertilizer product sales
Disaggregation of Revenue [Line Items]
Revenues		18,927	18,782
Sulfur services segment | Sulfur services
Disaggregation of Revenue [Line Items]
Revenues		2,915	2,859
Transportation segment
Disaggregation of Revenue [Line Items]
Revenues		38,941	37,795
Transportation segment | Land transportation
Disaggregation of Revenue [Line Items]
Revenues		24,234	24,119
Transportation segment | Inland transportation
Disaggregation of Revenue [Line Items]
Revenues		13,706	12,477
Transportation segment | Offshore transportation
Disaggregation of Revenue [Line Items]
Revenues		$ 1,001	$ 1,199

[1] Related Party Transactions Included Above   Three Months Ended   March 31,   2020   2019 Revenues:*       Terminalling and storage $ 15,874
  $ 18,972
Transportation 5,894
  5,643
Product Sales 92
  421
Costs and expenses:*       Cost of products sold: (excluding depreciation and amortization)       Sulfur services 2,767
  2,574
Terminalling and storage 5,777
  5,909
Expenses:       Operating expenses 21,771
  22,536
Selling, general and administrative 8,312
  8,535

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Nature of Operations and Basis of Presentation (Details) $ in Thousands, ft³ in Billions	3 Months Ended
	Mar. 31, 2020 USD ($) segment	Jun. 28, 2019 USD ($) ft³
Error Corrections and Prior Period Adjustments Restatement
Number of primary business lines | segment	4
Impairment of long lived assets	$ 4,400
Discontinued Operations, Disposed of by Sale | Natural Gas Storage Assets
Error Corrections and Prior Period Adjustments Restatement
Natural gas storage (in cubic feet) | ft³		50
Proceeds from sale of assets		$ 210,067

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Recurring | Level 2 | Commodity Contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodity derivative contracts, net	$ 2
Commodity derivative contracts, net		$ (667)
Nonrecurring | 2021 Notes | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
2021 Notes	364,124	373,374
Nonrecurring | 2021 Notes | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
2021 Notes	$ 146,825	$ 343,470

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Related Party Transactions - Schedule of the Impact of Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating expenses:
Operating expenses	$ 21,771	$ 22,536
Related Party
Revenues:
Revenue from related parties	21,860	25,036
Cost of products sold:
Cost of products sold	8,544	8,483
Operating expenses:
Operating expenses	21,771	22,536
Selling, general and administrative:
Selling, general and administrative	8,312	8,535
Related Party | Indirect, including overhead allocation
Selling, general and administrative:
Selling, general and administrative	4,188	4,185
Related Party | Product sales
Revenues:
Revenue from related parties	92	421
Related Party | Terminalling and storage
Operating expenses:
Operating expenses	4,575	4,607
Related Party | Terminalling and storage | Operating segments
Selling, general and administrative:
Selling, general and administrative	838	717
Related Party | Terminalling and storage | Terminalling and storage
Revenues:
Revenue from related parties	15,874	18,972
Related Party | Terminalling and storage | Terminalling and storage
Revenues:
Revenue from related parties	73	414
Cost of products sold:
Cost of products sold	5,777	5,909
Related Party | Transportation
Operating expenses:
Operating expenses	15,553	14,980
Related Party | Transportation | Operating segments
Selling, general and administrative:
Selling, general and administrative	1,839	1,728
Related Party | Transportation | Transportation
Revenues:
Revenue from related parties	5,894	5,643
Related Party | Natural gas liquids
Operating expenses:
Operating expenses	497	2,025
Related Party | Natural gas liquids | Operating segments
Selling, general and administrative:
Selling, general and administrative	704	1,189
Related Party | Sulfur services
Operating expenses:
Operating expenses	1,146	924
Related Party | Sulfur services | Operating segments
Selling, general and administrative:
Selling, general and administrative	743	716
Related Party | Sulfur services | Sulfur services
Revenues:
Revenue from related parties	19	7
Cost of products sold:
Cost of products sold	$ 2,767	$ 2,574

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Debt - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Debt Disclosure [Abstract]
Cash paid for interest	$ 16,736	$ 19,363
Capitalized interest	$ 4	$ 2

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Leases - Future Minimum Lease Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Operating Leases
Year 1	$ 9,519
Year 2	7,113
Year 3	4,379
Year 4	1,978
Year 5	1,115
Thereafter	6,564
Total	30,668
Less amounts representing interest costs	(4,500)
Total lease liability	26,168		$ 24,378
Finance Leases
Year 1	5,307
Year 2	336
Year 3	213
Year 4	0
Year 5	0
Thereafter	0
Total	5,856
Less amounts representing interest costs	(216)
Total lease liability	$ 5,640	$ 7,475	$ 10,426

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Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Derivatives, Fair Value
Derivative Assets	$ 2	$ 0
Derivative Liabilities	0	667
Commodity contracts | Fair value of derivatives
Derivatives, Fair Value
Derivative Assets	2	0
Derivative Liabilities	$ 0	$ 667

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 2
	March 31, 2020		December 31, 2019
Commodity derivative contracts, net	$	2	$	(667	)

	March 31, 2020				December 31, 2019
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Notes	$	364,124	$	146,825	$	373,374	$	343,470

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Partners' Capital (Tables)

3 Months Ended

Mar. 31, 2020

Partners' Capital Notes [Abstract]

Reconciliation of Net Income to Partners Interest in Net Income

The following is a reconciliation of net income from continuing operations and net income from discontinued operations allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:

	Three Months Ended March 31,
	2020		2019
Continuing operations:
Income (loss) from continuing operations	$	8,815	$	(4,758	)
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	49		256
General partner interest in undistributed income (loss)	127		(351		)
Less income (loss) allocable to unvested restricted units	55		(3		)
Limited partners’ interest in net income (loss)	$	8,584	$	(4,660	)

	Three Months Ended March 31,
	2020		2019
Discontinued operations:
Income from discontinued operations	$	—	$	1,102
Less general partner’s interest in net income (loss):
Distributions payable on behalf of general partner interest	—		(59		)
General partner interest in undistributed income	—		81
Less income allocable to unvested restricted units	—		1
Limited partners’ interest in net income	$	—	$	1,079

The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:

	Three Months Ended March 31,
	2020	2019
Basic weighted average limited partner units outstanding	38,640,862	38,681,925
Dilutive effect of restricted units issued	3,605	—
Total weighted average limited partner diluted units outstanding	38,644,467	38,681,925

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Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

At March 31, 2020 and December 31, 2019, long-term debt consisted of the following:

	March 31, 2020			December 31, 2019
$400,000 Revolving credit facility at variable interest rate (3.93%1 weighted average at March 31, 2020), due August 20234 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $4,457 and $4,586, respectively2	$	165,543		$	196,414
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $599 and $770, respectively, including unamortized premium of $267 and $344, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, due February 2021, unsecured2,3,4,5	364,124			373,374
Total	529,667			569,788
Less: current portion	(364,124		)	—
Total long-term debt, net of current portion	$	165,543		$	569,788
Current installments of finance lease obligations	$	5,114		$	6,758
Finance lease obligations	526			717
Total finance lease obligations	$	5,640		$	7,475

¹ Interest rate fluctuates based on the LIBOR rate plus an applicable margin set on the date of each advance. The margin above LIBOR is set every three months. Indebtedness under the credit facility bears interest at LIBOR plus an applicable margin or the base prime rate plus an applicable margin. All amounts outstanding at March 31, 2020 and December 31, 2019 were at LIBOR plus an applicable margin. The applicable margin for revolving loans that are LIBOR loans ranges from 2.25% to 3.50% and the applicable margin for revolving loans that are base prime rate loans ranges from 1.25% to 2.50%.  The applicable margin for existing LIBOR borrowings at March 31, 2020 is 3.25%. The credit facility contains various covenants which limit the Partnership’s ability to make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). The Partnership is permitted to make quarterly distributions so long as no event of default exists.

² The Partnership is in compliance with all debt covenants as of March 31, 2020 and December 31, 2019, respectively.

³ The 2021 indenture restricts the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

⁴ As of March 31, 2020, the Partnership’s 7.25% senior unsecured notes due 2021 (the "2021 Notes") were due within twelve months and have therefore been presented as a current liability on the Consolidated and Condensed Balance Sheets at March 31, 2020.  The Partnership's amended revolving credit facility includes a provision which accelerates the maturity date to August 19, 2020 if the 2021 Notes are not refinanced in a manner not prohibited by the facility. If the Partnership is unable to refinance the 2021 Notes and is unable to repay the outstanding borrowings under its revolving credit facility on August 19, 2020, the Partnership's ability to meet its obligations would be adversely affected. Failure to comply with this provision, if not waived, would result in an event of default under the Partnership's revolving credit facility, the potential acceleration of outstanding debt thereunder, and the potential foreclosure on the collateral securing such debt, and could cause a cross-default under other agreements, which could also result in the acceleration of those obligations by the counterparties to those agreements. The Partnership, with support from the Board of Directors, is actively pursuing a variety of strategic alternatives to strengthen the balance sheet and address near term maturities and accordingly, announced on April 6, 2020, the hiring of Stephens Inc. as a financial advisor to assist in the process. Pending the successful implementation of the refinancing, the conditions described above have raised substantial doubt about the Partnership’s ability to continue as a going concern.  The Partnership’s management is engaged in ongoing communication with credit providers and presently believes the measures being taken will enable the Partnership to successfully refinance the 2021 Notes and comply with covenants under its revolving credit facility, although no assurance can be given.

⁵ In March 2020, the Partnership repurchased on the open market an aggregate $9,344 of the 2021 Notes. These transactions resulted in a gain on retirement of $3,484.

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Revenue

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The following table disaggregates our revenue by major source:

	Three Months Ended March 31,
	2020		2019
Terminalling and storage segment
Lubricant product sales	$	28,934	$	31,067
Throughput and storage	20,474		23,104
	$	49,408	$	54,171
Natural gas liquids segment
Natural gas liquids product sales	$	82,211	$	116,474
	$	82,211	$	116,474
Sulfur services segment
Sulfur product sales	$	6,481	$	9,952
Fertilizer product sales	18,927		18,782
Sulfur services	2,915		2,859
	$	28,323	$	31,593
Transportation segment
Land transportation	$	24,234	$	24,119
Inland transportation	13,706		12,477
Offshore transportation	1,001		1,199
	$	38,941	$	37,795

Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service.

The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue.

Terminalling and Storage Segment

Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee.  For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate.  For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility.  When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Throughput and storage revenue in the table above includes non-cancelable revenue arrangements that are under the scope of ASC 842, whereby the Partnership has committed certain Terminalling and Storage assets in exchange for a minimum fee.

Natural Gas Liquids Segment

NGL distribution revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month.

Sulfur Services Segment

Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product.  Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month.

Transportation Segment

Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month.

Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month.

The table includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

	2020		2021		2022		2023		2024		Thereafter		Total
Terminalling and storage
Throughput and storage	$	34,599	$	43,273	$	40,394	$	41,605	$	42,854	$	338,339	$	541,064
Sulfur services
Sulfur product sales	4,236		5,366		3,220		2,175		975		975		16,947
Total	$	38,835	$	48,639	$	43,614	$	43,780	$	43,829	$	339,314	$	558,011

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Supplemental Balance Sheet Information

3 Months Ended

Mar. 31, 2020

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

SUPPLEMENTAL BALANCE SHEET INFORMATION

Components of "Other accrued liabilities" were as follows:

	March 31, 2020		December 31, 2019
Accrued interest	$	3,538	$	10,761
Asset retirement obligations	—		25
Property and other taxes payable	2,803		5,411
Accrued payroll	3,944		3,011
Operating lease liabilities	8,358		7,722
Other	1,639		1,859
	$	20,282	$	28,789

The schedule below summarizes the changes in our asset retirement obligations:

	March 31, 2020
Beginning asset retirement obligations	$	8,936
Additions to asset retirement obligations	379
Accretion expense	102
Liabilities settled	(510		)
Ending asset retirement obligations	8,907
Current portion of asset retirement obligations1	—
Long-term portion of asset retirement obligations2	$	8,907

¹The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets.

²The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets.

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Business Segments - Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total assets:
Total assets	$ 612,199	$ 667,156
Terminalling and storage
Total assets:
Total assets	288,915	292,136
Transportation
Total assets:
Total assets	170,274	170,045
Sulfur services
Total assets:
Total assets	112,709	110,780
Natural gas liquids
Total assets:
Total assets	$ 40,301	$ 94,195

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Related Party Transactions - Other Agreements (Details) - Martin Resource Management - Cross Tolling Agreement $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)	Mar. 31, 2020 bbl	Dec. 31, 2019 USD ($)
Related Party Transaction
Production minimum per day (in bbl) | bbl		6,500
Capital recovery fee reimbursement, expired			$ 2,088
Annual escalation benchmark percentage		3.00%
Scenario, Forecast
Related Party Transaction
Capital recovery fee reimbursement, expired	$ 2,586
Annual revenue decrease from contract expiration	$ 2,145

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Derivative Instruments and Hedging Activities - Statement of Operations Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 33	$ (239)
Commodity contracts | Cost of products sold
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 33	$ (239)

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Leases - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease termination term	1 year
Non-cancelable revenue arrangements, future minimum revenues, 2020	$ 14,386
Non-cancelable revenue arrangements, future minimum revenues, 2021	14,019
Non-cancelable revenue arrangements, future minimum revenues, 2022	13,004
Non-cancelable revenue arrangements, future minimum revenues, 2023	12,609
Non-cancelable revenue arrangements, future minimum revenues, 2024	12,609
Non-cancelable revenue arrangements, future minimum revenues, subsequent years	$ 49,414
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease term	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease term	17 years
Lease renewal term	5 years

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Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Accrued interest	$ 3,538	$ 10,761
Asset retirement obligations	0	25
Property and other taxes payable	2,803	5,411
Accrued payroll	3,944	3,011
Operating lease liabilities	8,358	7,722	$ 7,722
Other	1,639	1,859
Total other accrued liabilities	$ 20,282	$ 28,789

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of Derivative Instruments on the Consolidated Balance Sheets

The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:

	Fair Values of Derivative Instruments in the Consolidated and Condensed Balance Sheets
	Derivative Assets					Derivative Liabilities
		Fair Values					Fair Values
	Balance Sheet Location	March 31, 2020		December 31, 2019		Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives not designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	2	$	—	Fair value of derivatives	$	—	$	667
Total derivatives not designated as hedging instruments		$	2	$	—		$	—	$	667

Effect of Derivative Instruments on the Consolidated Statement of Operations

Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations

For the Three Months Ended March 31, 2020 and 2019

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2020		2019
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	33	$	(239	)
Total effect of derivatives not designated as hedging instruments		$	33	$	(239	)

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Inventories (Tables)

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Components of Inventory

Components of inventories at March 31, 2020 and December 31, 2019 were as follows: 

	March 31, 2020		December 31, 2019
Natural gas liquids	$	3,687	$	19,097
Sulfur	4,443		4,586
Fertilizer	14,549		15,852
Lubricants	20,126		18,925
Other	4,025		4,080
	$	46,830	$	62,540

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Reporting by Segment

Three Months Ended March 31, 2020	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations			Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	51,134	$	(1,726	)	$	49,408	$	7,456	$	758		$	3,745
Transportation	45,174		(6,233		)	38,941		4,280		(5,021		)	3,926
Sulfur services	28,336		(13		)	28,323		2,894		13,858			2,985
Natural gas liquids	82,215		(4		)	82,211		609		10,377			105
Indirect selling, general and administrative	—		—			—		—		(4,372		)	—
Total	$	206,859	$	(7,976	)	$	198,883	$	15,239	$	15,600		$	10,761

Three Months Ended March 31, 2019	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations			Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	55,892	$	(1,721	)	$	54,171	$	7,837	$	4,815		$	5,345
Transportation	45,186		(7,391		)	37,795		3,570		(3,880		)	2,461
Sulfur services	31,593		—			31,593		2,868		6,380			2,206
Natural gas liquids	116,474		—			116,474		626		6,858			287
Indirect selling, general and administrative	—		—			—		—		(4,567		)	—
Total	$	249,145	$	(9,112	)	$	240,033	$	14,901	$	9,606		$	10,299

Assets by Segment

The Partnership's assets by reportable segment as of March 31, 2020 and December 31, 2019, are as follows:

	March 31, 2020		December 31, 2019
Total assets:
Terminalling and storage	$	288,915	$	292,136
Transportation	170,274		170,045
Sulfur services	112,709		110,780
Natural gas liquids	40,301		94,195
Total assets	$	612,199	$	667,156

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Inventories

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Components of inventories at March 31, 2020 and December 31, 2019 were as follows: 

	March 31, 2020		December 31, 2019
Natural gas liquids	$	3,687	$	19,097
Sulfur	4,443		4,586
Fertilizer	14,549		15,852
Lubricants	20,126		18,925
Other	4,025		4,080
	$	46,830	$	62,540

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Partnership’s revenues and cost of products sold are materially impacted by changes in NGL prices. Additionally, the Partnership's results of operations are materially impacted by changes in interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. All derivatives and hedging instruments are non-hedge derivatives and are included on the balance sheet as an asset or a liability measured at fair value and changes in fair value are recognized as gains and losses in earnings of the periods in which they occur.

(a)    Commodity Derivative Instruments

The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price.  The Partnership monitors and manages the commodity market risk associated with potential commodity risk exposure.  In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of March 31, 2020 to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. At March 31, 2020, the Partnership has instruments totaling a gross notional quantity of 25,000 barrels settling during the month of April 2020. At December 31, 2019, the Partnership had instruments totaling a gross notional quantity of 452,000 barrels settling during the period from January 31, 2020 through February 29, 2020. These instruments settle against the applicable pricing source for each grade and location.

(b)    Interest Rate Derivative Instruments

The Partnership is exposed to market risks associated with interest rates. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. From time to time, the Partnership enters into interest rate swaps to manage interest rate risk associated with the Partnership’s variable rate credit facility and its 2021 Notes. At March 31, 2020 and December 31, 2019, the Partnership did not have any outstanding interest rate derivative instruments.

For information regarding gains and losses on interest rate derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below.

(c)    Tabular Presentation of Gains and Losses on Derivative Instruments

The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:

	Fair Values of Derivative Instruments in the Consolidated and Condensed Balance Sheets
	Derivative Assets					Derivative Liabilities
		Fair Values					Fair Values
	Balance Sheet Location	March 31, 2020		December 31, 2019		Balance Sheet Location	March 31, 2020		December 31, 2019
Derivatives not designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	2	$	—	Fair value of derivatives	$	—	$	667
Total derivatives not designated as hedging instruments		$	2	$	—		$	—	$	667

Effect of Derivative Instruments on the Consolidated and Condensed Statements of Operations

For the Three Months Ended March 31, 2020 and 2019

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2020		2019
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	33	$	(239	)
Total effect of derivatives not designated as hedging instruments		$	33	$	(239	)

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Revenue (Tables)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates our revenue by major source:

	Three Months Ended March 31,
	2020		2019
Terminalling and storage segment
Lubricant product sales	$	28,934	$	31,067
Throughput and storage	20,474		23,104
	$	49,408	$	54,171
Natural gas liquids segment
Natural gas liquids product sales	$	82,211	$	116,474
	$	82,211	$	116,474
Sulfur services segment
Sulfur product sales	$	6,481	$	9,952
Fertilizer product sales	18,927		18,782
Sulfur services	2,915		2,859
	$	28,323	$	31,593
Transportation segment
Land transportation	$	24,234	$	24,119
Inland transportation	13,706		12,477
Offshore transportation	1,001		1,199
	$	38,941	$	37,795

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The table includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

	2020		2021		2022		2023		2024		Thereafter		Total
Terminalling and storage
Throughput and storage	$	34,599	$	43,273	$	40,394	$	41,605	$	42,854	$	338,339	$	541,064
Sulfur services
Sulfur product sales	4,236		5,366		3,220		2,175		975		975		16,947
Total	$	38,835	$	48,639	$	43,614	$	43,780	$	43,829	$	339,314	$	558,011

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Business Segments

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The Partnership has four reportable segments: terminalling and storage, transportation, sulfur services and natural gas liquids. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions.

The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 14, 2020. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of administrative expenses or interest expense.    

Three Months Ended March 31, 2020	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations			Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	51,134	$	(1,726	)	$	49,408	$	7,456	$	758		$	3,745
Transportation	45,174		(6,233		)	38,941		4,280		(5,021		)	3,926
Sulfur services	28,336		(13		)	28,323		2,894		13,858			2,985
Natural gas liquids	82,215		(4		)	82,211		609		10,377			105
Indirect selling, general and administrative	—		—			—		—		(4,372		)	—
Total	$	206,859	$	(7,976	)	$	198,883	$	15,239	$	15,600		$	10,761

Three Months Ended March 31, 2019	Operating Revenues		Intersegment Revenues Eliminations			Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations			Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	55,892	$	(1,721	)	$	54,171	$	7,837	$	4,815		$	5,345
Transportation	45,186		(7,391		)	37,795		3,570		(3,880		)	2,461
Sulfur services	31,593		—			31,593		2,868		6,380			2,206
Natural gas liquids	116,474		—			116,474		626		6,858			287
Indirect selling, general and administrative	—		—			—		—		(4,567		)	—
Total	$	249,145	$	(9,112	)	$	240,033	$	14,901	$	9,606		$	10,299

The Partnership's assets by reportable segment as of March 31, 2020 and December 31, 2019, are as follows:

	March 31, 2020		December 31, 2019
Total assets:
Terminalling and storage	$	288,915	$	292,136
Transportation	170,274		170,045
Sulfur services	112,709		110,780
Natural gas liquids	40,301		94,195
Total assets	$	612,199	$	667,156

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Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

	Three Months Ended March 31,
	2020		2019
Provision for income taxes	$	347	$	696

The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. MTI is subject to income taxes due to its corporate structure. Total income tax expense of $347, related to the operation of the subsidiary, for the three months ended March 31, 2020, resulted in an effective income tax rate of 32.17%.

Total income tax expense of $448, related to the operation of the subsidiary, for the three months ended March 31, 2019, resulted in an effective income tax rate of 24.79%. The increase in the effective income tax rate for income taxes during the three months ended March 31, 2020, compared to the three months ended March 31, 2019, is primarily due to an increase in permanent differences and a decrease in income before income taxes. The decrease in the provision for income taxes during the three months ended March 31, 2020, compared to the similar period in 2019, was primarily due to the impact of a decrease in income before income taxes in the current period.

The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was enacted on March 27, 2020, in response to the market volatility and instability resulting from the COVID-19 pandemic, and includes changes to various income tax provisions including, but not limited to, providing for a five-year carryback of net operating losses generated in taxable years beginning after December 31, 2017, and before January 1, 2021, suspension of the 80% taxable income limitation for net operating losses generated after December 31, 2017, and before January 1, 2021, and relaxation of the limitation of adjusted taxable income as determined under Internal Revenue Code Section 163(j) from 30% to 50% when determining the deduction for business interest expense for 2019 and 2020. Since, prior to its acquisition by the Partnership, MTI was a Qualified Subchapter S subsidiary ("QSub") of Martin Resource Management Corporation, it is precluded from carrying back net operating losses to its QSub taxable years. The other applicable provisions of the CARES Act have no material impact on the annual effective tax rate ("AETR"), deferred taxes, or valuation allowances.

A current federal income tax expense (benefit) of $133 and $297, related to the operation of the subsidiary, were recorded for the three months ended March 31, 2020 and 2019, respectively. A current state income tax expense (benefit) of $(72) and $(218), related to the operation of the subsidiary, were recorded for the three months ended March 31, 2020 and 2019, respectively

With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

A deferred tax expense related to the MTI temporary differences of $286 and $369 was recorded for the three months ended March 31, 2020 and 2019, respectively. A deferred tax asset of $23,136 and $23,422, related to the cumulative book and tax temporary differences, existed at March 31, 2020 and December 31, 2019, respectively.

All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.

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Unit Based Awards - Schedule of Compensation Costs (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unit-based compensation expense	$ 346	$ 352
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unit-based compensation expense	301	329
Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unit-based compensation expense	$ 45	$ 23

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CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Revenues:
Revenues		$ 198,883	$ 240,033
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		108,810	152,757
Expenses:
Operating expenses	[1]	51,282	51,849
Selling, general and administrative	[1]	10,462	10,200
Depreciation and amortization		15,239	14,901
Total costs and expenses		185,793	229,707
Other operating income (loss), net		2,510	(720)
Operating income		15,600	9,606
Other income (expense):
Interest expense, net		(9,925)	(13,671)
Gain on retirement of senior unsecured notes		3,484	0
Other, net		3	3
Total other expense		(6,438)	(13,668)
Net income (loss) before taxes		9,162	(4,062)
Income tax expense		(347)	(696)
Income (loss) from continuing operations		8,815	(4,758)
Income from discontinued operations, net of income taxes		0	1,102
Net income (loss)		8,815	(3,656)
Less general partner's interest in net (income) loss		(176)	73
Less (income) loss allocable to unvested restricted units		(55)	2
Limited partners' interest in net income (loss)		8,584	(3,581)
Terminalling and storage
Revenues:
Revenues	[1]	20,474	23,104
Transportation
Revenues:
Revenues	[1]	38,941	37,795
Sulfur services
Revenues:
Revenues		2,915	2,859
Product sales
Revenues:
Revenues	[1]	136,553	176,275
Natural gas liquids
Revenues:
Revenues		82,211	116,474
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	69,835	106,190
Sulfur services
Revenues:
Revenues		25,408	28,734
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	15,295	19,696
Terminalling and storage
Revenues:
Revenues		28,934	31,067
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	$ 23,680	$ 26,871

[1] Related Party Transactions Included Above   Three Months Ended   March 31,   2020   2019 Revenues:*       Terminalling and storage $ 15,874
  $ 18,972
Transportation 5,894
  5,643
Product Sales 92
  421
Costs and expenses:*       Cost of products sold: (excluding depreciation and amortization)       Sulfur services 2,767
  2,574
Terminalling and storage 5,777
  5,909
Expenses:       Operating expenses 21,771
  22,536
Selling, general and administrative 8,312
  8,535

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Related Party Transactions - Narrative (Details)	3 Months Ended
	Mar. 31, 2020 shares
MMGP LLC
Related Party Transaction
General partner interest percentage	2.00%
Martin Resource Management
Related Party Transaction
Common limited partner units (in shares)	6,114,532
Voting interest percentage	15.70%
Martin Resource Management | Martin Resource Management | MMGP Holdings, LLC
Related Party Transaction
General partner interest percentage	51.00%
Martin Resource Management | MMGP LLC
Related Party Transaction
General partner interest percentage	2.00%

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CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 8,815	$ (3,656)
Less: (Income) from discontinued operations, net of income taxes	0	(1,102)
Net income (loss) from continuing operations	8,815	(4,758)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	15,239	14,901
Amortization and write-off of deferred debt issuance costs	492	895
Amortization of premium on notes payable	(77)	(77)
Deferred income tax expense	286	369
Loss on sale of property, plant and equipment, net	190	720
Gain on retirement of senior unsecured notes	(3,484)	0
Derivative (income) loss	(33)	239
Net cash paid for commodity derivatives	(636)	(385)
Unit-based compensation	346	352
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	26,413	13,451
Product exchange receivables	0	(15)
Inventories	15,710	15,235
Due from affiliates	2,729	(7,384)
Other current assets	(1,413)	(102)
Trade and other accounts payable	(10,440)	10,881
Product exchange payables	450	1,930
Due to affiliates	(166)	1,154
Income taxes payable	133	544
Other accrued liabilities	(9,118)	(11,177)
Change in other non-current assets and liabilities	(547)	(1,351)
Net cash provided by continuing operating activities	44,889	35,422
Net cash provided by discontinued operating activities	0	5,181
Net cash provided by operating activities	44,889	40,603
Cash flows from investing activities:
Payments for property, plant and equipment	(12,260)	(6,637)
Acquisitions	0	(23,720)
Payments for plant turnaround costs	(150)	(3,827)
Proceeds from involuntary conversion of property, plant and equipment	1,768	0
Proceeds from sale of property, plant and equipment	4,347	574
Net cash used in continuing investing activities	(6,295)	(33,610)
Net cash used in discontinued investing activities	0	(336)
Net cash used in investing activities	(6,295)	(33,946)
Cash flows from financing activities:
Payments of long-term debt and finance lease obligations	(114,724)	(89,255)
Proceeds from long-term debt	76,000	205,000
Purchase of treasury units	(9)	(392)
Payment of debt issuance costs	(192)	(77)
Excess purchase price over carrying value of acquired assets	0	(102,393)
Cash distributions paid	(2,457)	(19,613)
Net cash used in financing activities	(41,382)	(6,730)
Net decrease in cash	(2,788)	(73)
Cash at beginning of period	2,856	300
Cash at end of period	68	227
Non-cash additions to property, plant and equipment	$ 2,142	$ 2,001

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Divestitures and Discontinued Operations - Long-Lived Assets Held-for-Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 0	$ 5,052
Terminalling and storage
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	0	3,552
Transportation
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale	$ 0	$ 1,500

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

	Three Months Ended March 31,
	2020		2019
Provision for income taxes	$	347	$	696

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Natural gas liquids	$ 3,687	$ 19,097
Sulfur	4,443	4,586
Fertilizer	14,549	15,852
Lubricants	20,126	18,925
Other	4,025	4,080
Inventories	$ 46,830	$ 62,540