Martin Buys Marine Terminals

Purchase of midstream operator with a series of marine terminals on the U.S. Gulf Coast.

Martin Midstream Partners LP (Nasdaq: MMLP) has purchased Talen’s Marine & Fuel LLC, a privately-held company which owns a series of marine terminals on the U.S. Gulf coast, for an undisclosed amount.

In addition, Martin has sold some of its assets to Martin Energy Services LLC, a subsidiary of its general partner, Martin Resource Management Corp., also for an undisclosed amount.

Including the sale of the working capital-related assets to MES, MMLP's net investment is approximately $47.4 million, subject to standard post-closing adjustments. MMLP purchased the Talen's membership interests from various subsidiaries of Quintana Energy Partners LP.

The combined transactions represent significant enhancement to MMLP's existing marine terminal infrastructure, adding ten marine terminal locations between Houston/Galveston, Texas and Port Fourchon, Louisiana with total incremental tankage of approximately 300,000 barrels and an additional 4,000 feet of water-accessible bulkhead. The Acquisition includes additional marine fueling barges and tug boats and delivery rolling stock.

For 2013, MMLP expects incremental cash flows of approximately $6 million to $7 million from its net investment of $47.4 million in the acquisition based on projected through-put, marine services and third party dock rental revenues. The acquisition was funded under the partnership's revolving credit facility.