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Current MMLP Stock Info

Martin Midstream Partners (ticker: MMLP) announced yesterday that it entered into an agreement to sell six liquefied natural gas barges for a total price of $41.25 million. MMLP has decided to exit the natural gas liquids floating storage and trans-loading business. The company purchased the six barges in 2013 when it entered the floating storage and loading business.

All proceeds from the divestiture will be used to repay outstanding debt on the company’s revolving credit facility. In addition to helping pay down debt on the credit facility, MMLP’s management expects the sale to have a positive impact on the distributable cash flow. The barges, which were part of the Natural Gas Services segment as floating storage, generated negative cash flow in 2014.

Based on information from EnerCom’s MLP Weekly, Martin Midstream Partners’ Q3 2014 debt was $910 million. The company has an above average distribution yield of 10.8% with the average yield of the 55 MLPs covered being 6.5%. The company also has strong cash flow from operations with $1.51 of free cash flow per unit as compared to the average of -$0.05 of free cash flow per unit for the 55 company group.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.