Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - MARTIN MIDSTREAM PARTNERS L.P. | form8-kacquisitionofwtlpgp.htm |
| EX-99.1 - EXHIBIT - MARTIN MIDSTREAM PARTNERS L.P. | exhibit991auditedconsolida.htm |
| EX-23.1 - EXHIBIT - MARTIN MIDSTREAM PARTNERS L.P. | exhibit231consentofindepen.htm |
| EX-99.2 - EXHIBIT - MARTIN MIDSTREAM PARTNERS L.P. | exhibit992unauditedcondens.htm |
Exhibit 99.3
MARTIN MIDSTREAM PARTNERS L.P.
UNAUDITED PRO FORMA CONSOLIDATED AND CONDENSED FINANCIAL INFORMATION
INTRODUCTION
The following unaudited pro forma financial statements have been derived from the historical consolidated financial statements of Martin Midstream Partners L.P. (“the Partnership”) and the historical consolidated financial statements of Atlas Pipeline NGL Holdings, LLC and Atlas Pipeline NGL Holdings II, LLC (collectively, "Holdings"). The pro forma financial statements should be read in conjunction with the accompanying notes to pro forma financial statements and with the historical financial statements and related notes for both the Partnership and Holdings filed with the Securities and Exchange Commission.
For income statement items, the pro forma financial statements assume that the Holdings acquisition and the related borrowings under our credit facility occurred on January 1, 2013. The pro forma financial statements give pro forma effect to the acquisition of Holdings for $134.4 million.
The pro forma adjustments are based upon currently available information and certain estimates and assumptions, and therefore the actual adjustments will differ from the pro forma adjustments. However, management believes that the assumptions used provide a reasonable basis for presenting the significant effects of the acquisition as contemplated and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the pro forma financial statements. The pro forma financial statements may not be indicative of the results that actually would have occurred if we had completed the acquisition and the offering on the dates indicated. In addition, the pro forma financial statements are not necessarily indicative of the results of our future operations.
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TABLE OF CONTENTS
Page | |
Pro Forma Consolidated and Condensed Balance Sheet as of March 31, 2014 (unaudited) | |
Pro Forma Consolidated and Condensed Statements of Operations for the year ended December 31, 2013 (unaudited) | |
Pro Forma Consolidated and Condensed Statements of Operations for the three months ended March 31, 2014 (unaudited) | |
Notes to Consolidated and Condensed Financial Statements | |
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MARTIN MIDSTREAM PARTNERS L.P.
UNAUDITED PRO FORMA CONSOLIDATED AND CONDENSED BALANCE SHEET
As of March 31, 2014
(Dollars in thousands)
MMLP Historical | Holdings | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||||||
Assets | |||||||||||||||
Cash | $ | 4,371 | $ | — | $ | — | $ | 4,371 | |||||||
Accounts and other receivables, less allowance for doubtful accounts of $2,129 | 133,579 | — | — | 133,579 | |||||||||||
Product exchange receivables | 901 | — | — | 901 | |||||||||||
Inventories | 94,771 | — | — | 94,771 | |||||||||||
Due from affiliates | 16,448 | — | — | 16,448 | |||||||||||
Other current assets | 7,734 | 17 | (17 | ) | (a) | 7,734 | |||||||||
Total current assets | 257,804 | 17 | (17 | ) | 257,804 | ||||||||||
Property, plant and equipment, at cost | 946,784 | — | — | 946,784 | |||||||||||
Accumulated depreciation | (314,352 | ) | — | — | (314,352 | ) | |||||||||
Property, plant and equipment, net | 632,432 | — | — | 632,432 | |||||||||||
Goodwill | 23,802 | — | — | 23,802 | |||||||||||
Investment in unconsolidated entities | 129,336 | 84,743 | 49,670 | (a) | 263,749 | ||||||||||
Debt issuance costs, net | 15,190 | — | — | 15,190 | |||||||||||
Other assets, net | 9,048 | — | — | 9,048 | |||||||||||
$ | 1,067,612 | $ | 84,760 | $ | 49,653 | $ | 1,202,025 | ||||||||
Liabilities and Partners’ Capital | |||||||||||||||
Trade and other accounts payable | $ | 128,149 | $ | — | $ | — | 128,149 | ||||||||
Product exchange payables | 17,504 | — | — | 17,504 | |||||||||||
Due to affiliates | 3,044 | — | — | 3,044 | |||||||||||
Income taxes payable | 1,504 | — | — | 1,504 | |||||||||||
Other accrued liabilities | 15,565 | 9 | (9 | ) | (a) | 15,565 | |||||||||
Total current liabilities | 165,766 | 9 | (9 | ) | 165,766 | ||||||||||
Long-term debt and capital lease obligations, less current installments | 643,772 | — | 134,413 | (a) | 778,185 | ||||||||||
Other long-term obligations | 1,981 | — | — | 1,981 | |||||||||||
Total liabilities | 811,519 | 9 | 134,404 | 945,932 | |||||||||||
Commitments and contingencies | |||||||||||||||
Partners’ capital | 256,093 | 84,751 | (84,751 | ) | (a) | 256,093 | |||||||||
$ | 1,067,612 | $ | 84,760 | $ | 49,653 | $ | 1,202,025 | ||||||||
See accompanying notes to the unaudited pro forma financial statements.
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MARTIN MIDSTREAM PARTNERS L.P.
UNAUDITED PRO FORMA CONSOLIDATED AND CONDENSED STATEMENT OF OPERATIONS
Year Ended December 31, 2013
(Dollars in thousands)
MMLP Historical | Holdings | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage | $ | 115,965 | $ | — | $ | — | $ | 115,965 | |||||||
Marine transportation | 98,523 | — | — | 98,523 | |||||||||||
Sulfur services | 12,004 | — | — | 12,004 | |||||||||||
Product sales: | |||||||||||||||
Natural gas services | 984,653 | — | — | 984,653 | |||||||||||
Sulfur services | 201,120 | — | — | 201,120 | |||||||||||
Terminalling and storage | 221,245 | — | — | 221,245 | |||||||||||
1,407,018 | — | — | 1,407,018 | ||||||||||||
Total revenues | 1,633,510 | — | — | 1,633,510 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services | 944,961 | — | — | 944,961 | |||||||||||
Sulfur services | 157,723 | — | — | 157,723 | |||||||||||
Terminalling and storage | 195,640 | — | — | 195,640 | |||||||||||
1,298,324 | — | — | 1,298,324 | ||||||||||||
Expenses: | |||||||||||||||
Operating expenses | 172,043 | 197 | — | 172,240 | |||||||||||
Selling, general and administrative | 29,397 | — | — | 29,397 | |||||||||||
Depreciation and amortization | 52,240 | — | — | 52,240 | |||||||||||
Total costs and expenses | 1,552,004 | 197 | — | 1,552,201 | |||||||||||
Other operating income | 1,166 | — | — | 1,166 | |||||||||||
Operating income (loss) | 82,672 | (197 | ) | — | 82,475 | ||||||||||
Other income (expense): | |||||||||||||||
Equity in earnings (loss) of unconsolidated entities | (53,048 | ) | 4,988 | (80 | ) | (b) | (48,140 | ) | |||||||
Debt prepayment premium | (272 | ) | — | — | (272 | ) | |||||||||
Interest expense | (42,495 | ) | (2 | ) | (4,239 | ) | (c) | (46,736 | ) | ||||||
Other, net | 542 | — | — | 542 | |||||||||||
Total other income (expense) | (95,273 | ) | 4,986 | (4,319 | ) | (94,606 | ) | ||||||||
Net income (loss) before taxes | (12,601 | ) | 4,789 | (4,319 | ) | (12,131 | ) | ||||||||
Income tax expense | (753 | ) | — | — | (753 | ) | |||||||||
Net income (loss) | (13,354 | ) | 4,789 | (4,319 | ) | (12,884 | ) | ||||||||
Less general partner's interest in net (income) loss | 267 | — | — | 267 | |||||||||||
Less pre-acquisition (income) loss allocated to Parent | — | — | — | — | |||||||||||
Less loss allocable to unvested restricted units | 40 | — | — | 40 | |||||||||||
Limited partner's interest in net income (loss) | $ | (13,047 | ) | $ | 4,789 | $ | (4,319 | ) | $ | (12,577 | ) | ||||
Net loss per unit attributable to limited partners - basic | $ | (0.49 | ) | $ | (0.47 | ) | |||||||||
Weighted average limited partner units - basic | 26,558 | 26,558 | |||||||||||||
Net loss per unit attributable to limited partners - diluted | $ | (0.49 | ) | $ | (0.47 | ) | |||||||||
Weighted average limited partner units - diluted | 26,558 | 26,558 | |||||||||||||
See accompanying notes to the unaudited pro forma financial statements.
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MARTIN MIDSTREAM PARTNERS L.P.
UNAUDITED PRO FORMA CONSOLIDATED AND CONDENSED STATEMENT OF OPERATIONS
Three Months Ended March 31, 2014
(Dollars in thousands)
MMLP Historical | Holdings | Pro Forma Adjustments | Pro Forma Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Terminalling and storage | $ | 31,801 | $ | — | $ | — | $ | 31,801 | |||||||
Marine transportation | 23,410 | — | — | 23,410 | |||||||||||
Sulfur services | 3,037 | — | — | 3,037 | |||||||||||
Product sales: | |||||||||||||||
Natural gas services | 333,337 | — | — | 333,337 | |||||||||||
Sulfur services | 51,170 | — | — | 51,170 | |||||||||||
Terminalling and storage | 54,273 | — | — | 54,273 | |||||||||||
438,780 | — | — | 438,780 | ||||||||||||
Total revenues | 497,028 | — | — | 497,028 | |||||||||||
Costs and expenses: | |||||||||||||||
Cost of products sold: (excluding depreciation and amortization) | |||||||||||||||
Natural gas services | 320,698 | — | — | 320,698 | |||||||||||
Sulfur services | 37,853 | — | — | 37,853 | |||||||||||
Terminalling and storage | 48,029 | — | — | 48,029 | |||||||||||
406,580 | — | — | 406,580 | ||||||||||||
Expenses: | |||||||||||||||
Operating expenses | 43,896 | 32 | — | 43,928 | |||||||||||
Selling, general and administrative | 8,606 | — | — | 8,606 | |||||||||||
Depreciation and amortization | 13,992 | — | — | 13,992 | |||||||||||
Total costs and expenses | 473,074 | 32 | — | 473,106 | |||||||||||
Other operating loss | (45 | ) | — | — | (45 | ) | |||||||||
Operating income (loss) | 23,909 | (32 | ) | — | 23,877 | ||||||||||
Other income (expense): | |||||||||||||||
Equity in earnings (loss) of unconsolidated entities | (296 | ) | 1,727 | 161 | (b) | 1,592 | |||||||||
Interest expense | (11,451 | ) | (1 | ) | (1,059 | ) | (c) | (12,511 | ) | ||||||
Other, net | (67 | ) | — | — | (67 | ) | |||||||||
Total other expense | (11,814 | ) | 1,726 | (898 | ) | (10,986 | ) | ||||||||
Net income before taxes | 12,095 | 1,694 | (898 | ) | 12,891 | ||||||||||
Income tax expense | (300 | ) | — | — | (300 | ) | |||||||||
Net income | 11,795 | 1,694 | (898 | ) | 12,591 | ||||||||||
Less general partner's interest in net income | (236 | ) | — | — | (236 | ) | |||||||||
Less income allocable to unvested restricted units | (32 | ) | — | — | (32 | ) | |||||||||
Limited partners' interest in net income | $ | 11,527 | $ | 1,694 | $ | (898 | ) | $ | 12,323 | ||||||
Net income per unit attributable to limited partners - basic | $ | 0.43 | $ | 0.46 | |||||||||||
Weighted average limited partner units - basic | 26,572 | 26,572 | |||||||||||||
Net income per unit attributable to limited partners - diluted | $ | 0.43 | $ | 0.46 | |||||||||||
Weighted average limited partner units - diluted | 26,605 | 26,605 | |||||||||||||
See accompanying notes to the unaudited pro forma financial statements.
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MARTIN MIDSTREAM PARTNERS L.P.
NOTES TO UNAUDITED CONSOLIDATED AND CONDENSED PRO FORMA FINANCIAL STATEMENTS
(a) | Reflects the purchase of the Partnership’s equity investment in WTLPG financed by proceeds from long-term debt and the elimination of Holdings' assets, liabilities and equity not acquired by the Partnership. |
(b) | Reflects the adjustment of the incremental amount of amortization of the carrying value of the Partnership's equity interest in WTLPG in excess of Holding's carrying value of the underlying net assets. Of the excess basis of $95.9 million, $48.0 million will be amortized over approximately 35 years. The annual amount of excess amortization will decrease by $80 thousand compared to historical amounts recorded. |
(c) | Reflects the additional interest expense resulting from the $134.4 million in borrowings under the Partnership's credit facility. The interest rate used for the pro forma adjustment was 3.15%, which represents the Partnership's current weighted average rate on the facility. The interest rate can vary and an increase of 1/8% would increase interest expense and decrease income before income taxes by $0.2 million annually. |
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