What changed in this filing

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Item 1. Business

2021-03-03 compared with 2020-02-14 · 215 added, 311 removed, 482 unchanged (52% of the section changed)

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• Natural gas liquids ("NGL") marketing, distribution, and transportation services.

Our vertically integrated services have created longstanding relationships with a diversified customer base with a revenue-weighted average customer relationship of approximately 16.0 years.

These customers include major and independent oil and gas companies, independent refiners, chemical companies, and other wholesale purchasers of certain petroleum products and by-products, with significant business concentrated around the U.S.

Our vertically integrated services have created longstanding relationships with a diversified customer base that includes major and independent oil and gas companies, independent refiners, chemical companies, and other wholesale purchasers of certain petroleum products and by-products, with significant business concentrated around the U.S.

Gulf Coast refinery complex, which is a major hub for petroleum refining, natural gas gathering and processing, and support services for the exploration and production industry.

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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 has operated our business since its inception in 2002.

Martin Resource Management Corporation began operating our NGL business in the 1950s and our sulfur business in the 1960s.

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We believe that our terminalling, processing, storage and packaging services for petroleum products and by-products would be difficult for our customers or competitors to replicate.

We have a revenue weighted average relationship length of 10.0 years among our top five customers in the segment.

• Transportation.

We operate a fleet of both land transportation and marine transportation assets that transport petroleum products and by-products, petrochemicals, and chemicals.

Our land transportation assets include approximately 540 tank trucks and 1,275 trailers and are based across 23 terminals strategically located throughout the U.S.

Our land transportation assets include approximately 560 trucks and 1,150 tank trailers which are based across 23 terminals strategically located throughout the U.S.

Gulf Coast and southeastern United States.

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Our "refinery and petrochemical services" model is focused on transportation of heavy tank bottoms (by-products) and other petroleum products, hauling liquefied petroleum gas ("LPG"), molten sulfur, sulfuric acid, paper mill liquids, chemicals, dry bulk and numerous other bulk liquid commodities from refineries and petrochemical production locations to end markets.

We provide these

transportation services on a fee basis, and many of our customers have long standing contractual relationships with us.

We provide these transportation services on a fee basis, and many of our customers have long standing contractual relationships

We believe our modernized asset base is attractive both to our existing customers as well as potential new customers.

In addition, our fleet contains several vessels that reflect our focus on specialty products.

We have a revenue weighted average relationship length of 9.4 years among our top five customers in this segment.

• Sulfur Services.

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Gulf Coast region.

We seek to buy and sell molten sulfur on contracts that are tied to sulfur indices to minimize margin fluctuations.

We purchase and sell molten sulfur on contracts that are tied to sulfur indices to minimize margin fluctuations.

We process molten sulfur into prilled or pelletized sulfur at our facilities in Beaumont, Texas and Port of Stockton, California on contracts that traditionally provide guaranteed minimum fees.

The sulfur we process and handle is primarily used in the production of fertilizers and industrial chemicals.

We own and operate five sulfur-based fertilizer production plants and one emulsified sulfur blending plant located in Texas and Illinois and manufacture primarily sulfur-based fertilizer products for wholesale distributors and industrial users.

We own and operate five sulfur-based fertilizer production plants and one emulsified sulfur blending plant.

These plants are located in Texas and Illinois and manufacture primarily sulfur-based fertilizer products for wholesale distributors and industrial users.

Demand for our sulfur products exists across the globe, and our asset base provides additional opportunities to handle increases in U.S.

supply and access to foreign demand.

We have a revenue weighted average relationship length of 19.0 years among our top five customers in this segment.

• Natural Gas Liquids.

We distribute NGLs that we primarily purchase from refineries and natural gas processors.

We store and transport NGLs for wholesale deliveries to refineries, industrial NGL users in Texas and the southeastern U.S.

and propane retailers.

We sell and distribute NGLs that we primarily purchase from refineries and natural gas processors.

We store and transport NGLs for wholesale deliveries to refineries, industrial NGL users and propane retailers in the southeastern U.S.

We own approximately 2.1 million barrels of underground storage capacity for NGLs.

This segment is primarily driven by the purchase of butane in the summer months, when demand is typically low, and sale in the winter months, when demand is typically higher.

We have a revenue weighted average relationship length of 21.6 years among our top five customers in this segment.

Significant Developments in 2020

Beginning in 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.

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.

Divestiture of East Texas Pipeline.

On August 12, 2019, we completed the sale of our East Texas Pipeline for $17.5 million.

The net proceeds were used to reduce outstanding borrowings under our revolving credit facility.

Credit Facility Amendment and Extension.

On July 18, 2019, the Partnership amended its revolving credit facility to, among other things, extend the maturity date from March 2020 to August 2023 (provided we have refinanced our 7.25% senior unsecured notes due 2021 (the "2021 Notes") on or before August 19, 2020) and reduce commitments from $500.0 million to $400.0 million.

Divestiture of Natural Gas Storage Assets.

On June 28, 2019, we completed the sale of our 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, we received cash proceeds of $210.1 million after transaction fees and expenses.

The proceeds were used to reduce outstanding borrowings under our revolving credit facility.

Neches Shiploader Incident.

On Friday May 10, 2019, an incident occurred at our Neches Terminal in Beaumont, Texas, causing structural damage to the terminal's mobile ship-loader and crane as a result of severe weather passing through the area.

While the damage was repaired, the terminal was unable to load prilled sulfur onto oceangoing vessels.

The shiploader was placed back in service on January 28, 2020.

As a result of the downtime associated with the repairs, the net impact on EBITDA during 2019 was $2.3 million after receipt of $1.3 million in business interruption insurance proceeds.

Martin Transport Inc.

Stock Purchase Agreement.

On October 22, 2018, we entered into a stock purchase agreement (the "Stock Purchase Agreement") with Martin Resource Management Corporation to acquire all of the issued and outstanding equity of Martin Transport, Inc.

("MTI"), a wholly-owned subsidiary of Martin Resource Management Corporation which operates a fleet of tank trucks providing transportation of petroleum products, liquid petroleum gas, chemicals, sulfur and other products, as well as owns 23 terminals located throughout the U.S.

Gulf Coast and southeastern United States for total consideration of $135.0 million with a $10.0 million earn-out based on certain performance thresholds.

Additionally, a post-closing working capital adjustment was finalized on January 28, 2019 which included additional consideration paid to Martin Resource Management Corporation of $2.2 million.

The Stock Purchase Agreement contained customary representations and warranties.

Martin Resource Management Corporation has owned and operated MTI or its predecessor for over 40 years and MTI is integral to our routine movements of sulfur and NGLs.

Based on operational estimates and current transportation market conditions, this drop-down from our general partner will provide strategic long-term growth for the Partnership.

This transaction closed January 2, 2019 and was effective as of January 1, 2019.

As of January 1, 2019, Martin Resource Management Corporation discontinued providing land transportation services.

Sale of Mega Lubricants

On December 22, 2020, we entered into an asset purchase and sale agreement to sell certain assets used in connection with our Mega Lubricants shore-based terminals business ("Mega Lubricants") to John W.

Stone Oil Distributor, LLC ("Stone Oil") for $22.4 million.

Mega Lubricants is engaged in the business of blending, manufacturing and delivering various marine application lubricants, sub-sea specialty fluids, and proprietary commercial and industrial products.

The transaction closed on December 22, 2020.

The proceeds from the transaction were used to reduce outstanding borrowings under our revolving credit facility.

Exchange Offer and Cash Tender Offer

On August 12, 2020, (the "Settlement Date") we successfully completed our exchange offer (the "Exchange Offer") and consent solicitation to certain eligible holders of our 7.25% senior unsecured notes due 2021 ("2021 Notes") and separate but related cash tender offer and consent solicitation to certain other holders of our 2021 Notes.

Please see Note 15 in Part II of this Form 10-K for more information about the Exchange Offer and related transactions.

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.

The Partnership continues to prioritize 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 were 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.

Further, we continue to provide 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 experienced a decline in oil prices in response to oil demand concerns.

These concerns were further exacerbated by the price war among members of the Organization of Petroleum Exporting Countries ("OPEC") and other non-OPEC producer nations during the first quarter of 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, which has impacted our 2020 performance.

This impact started in February of 2020 and

continued through the end of the year, during which time we have seen unfavorable trends in certain key metrics across several of our business lines compared to historical periods.

The significant reduction in refinery utilization as a result of reduced refined products demand significantly impacted our Transportation and NGL segments.

As the volume of products produced or purchased by refineries has been reduced, demand for our services has decreased.

Looking forward, we expect to continue to experience some adverse impacts of COVID-19 in our transportation segment during the first half of 2021 but we believe that refinery utilization will continue to increase in the second half of 2021 as a result of widespread vaccinations, government stimulus, and a rebounding economy.

This should ultimately improve refined product demand as people get back to work and begin traveling again.

We expect this will positively impact our transportation segment as demand for our services improves.

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.

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 December 31, 2020.

Subsequent Events

Retirement of 2021 Notes.

On February 15, 2021, our 2021 Notes matured and we retired the outstanding balance of $28.8 million using our revolving credit facility.

Quarterly Distribution.

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We continually evaluate organic expansion opportunities in existing areas of operation that will allow us to leverage our existing market position and increase the revenues from our existing assets through improved utilization and efficiency.

For example, our specialty products division is opening an additional grease processing and packaging location to serve new and existing customers in the western United States.

• Spur Internal Organic Growth by Attracting New Customers and Expanding Services Provided to Existing Customers .

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We intend to utilize our industry knowledge, network of customers and suppliers, and strategic asset base to expand commercial alliances to drive revenue and cash flow growth in the future.

We have access to approximately 96.5 additional acres of land at the Beaumont Terminal, which is an attractive deepwater alternative to the Houston Ship Channel where we believe opportunities may exist to jointly develop a potential project using our terminalling expertise.

We also own approximately 18.4 acres of land with a dock located at the mouth of the Port of Corpus Christi Ship Channel, which we believe is a favorable location for a crude oil export project.

• Maintain a Disciplined Financial Policy .

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We generate a significant amount of our cash flow from fee-based contracts with our customers, many of which are major and independent oil and gas companies with whom we have longstanding customer relationships.

A majority of our fee-based contracts consist of reservation charges or minimum fee arrangements, which reduce the volatility of our cash flows due to volume fluctuations.

majority of our fee-based contracts consist of reservation charges or minimum fee arrangements, which reduce the volatility of our cash flows due to volume fluctuations.

Vertically Integrated Services Provided for U.S.

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Accordingly, a significant portion of our assets are located in proximity to refining operations along the U.S.

For example, our land transportation assets are based out of terminals strategically located to serve refineries and chemical companies across the U.S.

Many of our sulfur services assets are strategically located to source sulfur from the largest refinery sources in the United States.

Finally, our terminalling and storage assets are located in strategic areas across the U.S.

For example, our land transportation assets are based out of terminals located to serve refineries and chemical companies across the U.S.

Many of our sulfur services assets are located to source sulfur from the largest refinery sources in the United States.

Finally, our terminalling and storage assets are located in areas across the U.S.

Gulf Coast to support our refinery-based customers.

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For example, we own facilities and resources to transport a variety of specialty products, including ammonia, molten sulfur and asphalt.

Some of these specialty products require treatment across a wide range of temperatures ranging between approximately -30 to +400 degrees Fahrenheit to remain in liquid form, which our facilities are designed to accommodate.

Some of these specialty products require treatment across a wide range of temperatures (between approximately -30 to +400 degrees Fahrenheit) to remain in liquid form, which our facilities are designed to accommodate.

These capabilities help us enhance relationships with our customers by offering them services to handle their unique product requirements.

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We have established a reputation in our industry as a reliable and cost-effective supplier of services to our customers and have a track record of safe, efficient operation of our facilities.

Our management has also established long-term relationships with many of our suppliers and customers with a revenue-weighted average customer tenure of approximately 16 years.

Our management has also established long-term relationships with many of our suppliers and customers.

We benefit from our management’s reputation and track record and from these long-term relationships.

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Strong Parent Support .

Martin Resource Management Corporation, a supportive general partner, which is privately owned, assumes a significant amount of the working capital demands and margin risk, providing stable fee-based cash flows to our limited partners.

Martin Resource Management Corporation, our general partner, which is privately owned, assumes a significant amount of the working capital demands and margin risk, providing stable fee-based cash flows to our limited partners.

Terminalling and Storage Segment

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The marine and offshore oil and gas exploration and production industries use terminal facilities in the U.S.

Gulf Coast region as shore bases that provide them logistical support services as well as provide a broad range of products, including fuel oil, lubricants, chemicals and supplies.

Gulf Coast region as shore bases that provide them logistical support services as well as a broad range of products, including fuel oil,

lubricants, chemicals and supplies.

The demand for these types of terminals, services and products is driven primarily by offshore exploration, development and production in the Gulf of Mexico.

Offshore activity is greatly influenced by current and projected prices of oil and natural gas.

Offshore activity is greatly influenced by current and projected prices of oil and natural gas and regulatory requirements.

Specialty Petroleum Terminals.

We own or operate 12 terminalling facilities providing storage, handling and transportation of various petroleum products and by-products.

We own or operate 13 terminalling facilities providing storage, handling and transportation of various petroleum products and by-products as well as the blending and packaging of naphthenic lubricants and automotive, commercial, industrial, and post-tension greases.

The locations and capabilities of our terminals are structured to complement our other businesses and reflect our strategy to provide a broad range of integrated services in the storage, handling and transportation of products.

We developed our terminalling and storage assets by acquisition and upgrades of existing facilities as well as developing our own properties strategically located near rail, waterways and pipelines.

We anticipate further expansion of our terminalling facilities through both acquisition and organic growth.

At the Neches and Stanolind terminals, our customers are primarily energy or petrochemical companies.

We anticipate further expansion of our terminalling facilities through primarily organic growth.

At the Neches, Stanolind, and Tampa terminals, our customers are primarily energy and petrochemical companies.

In addition, Martin Resource Management Corporation pays us for terminalling and storage of asphalt at our Tampa facility through a terminalling service agreement that includes a provision for minimum volume throughput requirements.

We charge either a fixed monthly fee or a throughput fee for the use of services we perform at our facilities based on the capacity of the applicable tank.

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In Smackover, Arkansas, we own a refinery and terminal where we process crude oil into finished products that include naphthenic lubricants, distillates, asphalt and other intermediates.

This process is dedicated to an affiliate of Martin Resource Management Corporation through a long-term tolling agreement based on throughput rates and a monthly reservation fee.

This process is dedicated to a subsidiary of Martin Resource Management Corporation through a long-term tolling agreement based on throughput rates and a monthly reservation fee.

In Smackover, Arkansas, we own and operate a terminal used for lubricant blending, processing, packaging, marketing and distribution.

This terminal is used as our central hub for branded and private label packaged lubricants where we receive, package and ship heavy-duty, passenger car, and industrial lubricants to a network of retailers and distributors.

In Kansas City, Missouri, we lease and operate a plant that specializes in the processing and packaging of automotive, commercial and industrial greases.

In Houston, Texas, we own and operate a plant that specializes in the processing and packaging of post tension greases.

We own asphalt terminals in each of Hondo, South Houston, and Port Neches, Texas and Omaha, Nebraska, each of which is dedicated to an affiliate of Martin Resource Management Corporation through a terminalling service agreement based on throughput rates.

In Kansas City, Missouri, we lease and operate a plant that specializes in the production, packaging and distribution of automotive, commercial and industrial greases.

In Houston, Texas, we own and operate a plant that specializes in the production and distribution of commercial and industrial greases.

In Phoenix, Arizona, we lease and operate a plant that specializes in the production and distribution of commercial and industrial greases.

We own asphalt terminals in each of Hondo, South Houston, and Port Neches, Texas and Omaha, Nebraska, each dedicated to a subsidiary of Martin Resource Management Corporation through a terminalling service agreement based on throughput rates.

In Beaumont, Texas, we own a terminal where we receive natural gasoline via pipeline and then ship the product to our customers via other pipelines to which the facility is connected, referred to as the "Spindletop Terminal." Our fees for the use of this facility are based on the volume of barrels shipped from the terminal.

The following is a summary description of our shore-based specialty terminals:

Aggregate Capacity (in barrels)

Tampa, Florida

Asphalt and fuel oil

Marine terminal, loading/unloading for vessels, barges, railcars and trucks

Beaumont, Texas

Asphalt, crude oil, sulfur, sulfuric acid and fuel oil

Marine terminal, marine dock for loading/unloading of vessels, barges, railcars and trucks

Beaumont, Texas

Molten sulfur, formed sulfur, ammonia, asphalt, fuel oil, crude oil and sulfur-based fertilizer

Marine terminal, loading/unloading for vessels, barges, railcars and trucks

Terminal Location Aggregate Capacity (in barrels) Products Description

Tampa (1) Tampa, Florida 662,000 Asphalt, crude oil, and diesel Marine terminal, loading/unloading for vessels, barges, railcars and trucks

Stanolind Beaumont, Texas 619,000 Asphalt, crude oil, sulfur, sulfuric acid and fuel oil Marine terminal, marine dock for loading/unloading of vessels, barges, railcars and trucks

Neches (2) Beaumont, Texas 551,000 Molten sulfur, formed sulfur, ammonia, asphalt, fuel oil, crude oil and sulfur-based fertilizer Marine terminal, loading/unloading for vessels, barges, railcars and trucks

(1) This terminal is located on land owned by the Tampa Port Authority that was leased to us under a 10-year lease that expires in December 2021.

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The following is a summary description of our non shore-based specialty terminals:

Aggregate Capacity

Smackover Refinery

Smackover, Arkansas

7,700 barrels per day;

Terminal Location Aggregate Capacity Products Description

Smackover Refinery Smackover, Arkansas 7,700 barrels per day;

275,000 barrels of crude bulk storage;

647,000 barrels of lubricant storage

Naphthenic lubricants, distillates, asphalt, crude oil

Crude refining facility

Martin Lubricants

Smackover, Arkansas

3.9 million gallons bulk storage

Agricultural, automotive, and industrial lubricants and grease

Lubricants packaging facility

Martin Lubricants (1)

Kansas City, Missouri

0.2 million gallons of bulk storage

Automotive, commercial and industrial greases

Grease manufacturing and packaging facility

Martin Lubricants

Houston, Texas

0.2 million gallons of bulk storage

Post tension greases

Grease manufacturing and packaging facility

Hondo Asphalt

182,000 barrels

Asphalt processing and storage

South Houston Asphalt

Houston, Texas

95,000 barrels

Asphalt processing and storage

Port Neches Asphalt

Port Neches, Texas

24,000 barrels

Asphalt processing and storage

Omaha Asphalt

Omaha, Nebraska

112,000 barrels

Asphalt processing and storage

Beaumont, Texas

90,000 barrels

Natural gasoline

Pipeline receipts and shipments

This terminal contains a warehouse owned by third parties and leased under a lease that expires in December 2020 and can be extended by us for two successive five-year periods.

647,000 barrels of lubricant storage Naphthenic lubricants, distillates, asphalt, crude oil Crude refining facility

Martin Lubricants Smackover, Arkansas 4.0 million gallons bulk storage Agricultural, automotive, and industrial lubricants and grease Lubricants packaging facility

Martin Specialty Products (1) Kansas City, Missouri 0.2 million gallons of bulk storage Automotive, commercial and industrial greases Grease manufacturing and packaging facility

Martin Specialty Products Houston, Texas 0.2 million gallons of bulk storage Commercial and industrial greases Grease manufacturing and packaging facility

Martin Specialty Products (2) Phoenix, Arizona 0.1 million gallons of bulk storage Commercial and industrial greases Grease manufacturing and packaging facility

Hondo Asphalt Hondo, Texas 182,000 barrels Asphalt Asphalt processing and storage

South Houston Asphalt Houston, Texas 95,000 barrels Asphalt Asphalt processing and storage

Port Neches Asphalt Port Neches, Texas 17,500 barrels Asphalt Asphalt processing and storage

Omaha Asphalt Omaha, Nebraska 112,000 barrels Asphalt Asphalt processing and storage

Spindletop Beaumont, Texas 90,000 barrels Natural gasoline Pipeline receipts and shipments

(1) This terminal contains a warehouse owned by third parties and leased under a lease that expires in December 2025 and can be extended by us for one five-year period.

(2) This terminal contains a warehouse owned by third parties and leased under a lease that expires in October 2024 and can be extended by us for one five-year period.

Marine Shore-Based Terminals.

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Additionally, full service terminals also provide shore bases for companies that are operating in the offshore exploration and production industry.

Customers are primarily oil and gas exploration and production companies and oilfield service companies, such as

drilling fluid companies, marine transportation companies and offshore construction companies.

Customers are primarily oil and gas exploration and production companies and oilfield service companies, such as drilling fluid companies, marine transportation companies and offshore construction companies.

Shore bases typically provide logistical support, including the storing and handling of tubular goods, loading and unloading bulk materials, providing facilities from which major and independent oil companies can communicate with and control offshore operations and leasing dockside facilities to companies which provide complementary products and services such as drilling fluids and cementing services.

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Full Service Terminals.

We own or operate six full service terminals.

We own or operate four full service terminals.

These facilities provide logistical support services and storage and handling services for fuel and lubricants.

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The following is a summary description of our full service terminals:

Aggregate Capacity (barrels)

Terminal Location Aggregate Capacity (barrels)

End of Lease (Including Options)

Amelia, Louisiana

Fourchon, Louisiana

February 2047

Harbor Island (1)

Port Aransas, Texas

December 2039

Intracoastal City 2 (2)

Intracoastal City, Louisiana

December 2025

Pelican Island

Galveston, Texas

Theodore, Alabama

Fourchon 15 Fourchon, Louisiana 7,600 February 2047

Harbor Island (1) Port Aransas, Texas 6,800 December 2039

Pelican Island Galveston, Texas 87,600 Own

Theodore Theodore, Alabama 19,900 Own

(1) A portion of this terminal is owned.

This terminal is currently in caretaker status.

Fuel and Lubricant Terminals.

We own or operate 13 lubricant and fuel terminals located in the U.S.

We own or operate 13 fuel and lubricant terminals located in the U.S.

Gulf Coast region that provide storage and handling services for lubricants and fuel oil.

The following is a summary description of our fuel and lubricant terminals at:

Aggregate Capacity (barrels)

Terminal Location Aggregate Capacity (barrels)

End of Lease (Including Options)

Dulac, Louisiana

December 2041

Gueydan, Louisiana

Fourchon, Louisiana

Galveston T (2)

Galveston, Texas

Intracoastal City (2)

Intracoastal City, Louisiana

Jennings Bulk Plant

Jennings, Louisiana

Houston, Texas

Lake Charles T

Lake Charles, Louisiana

Pascagoula (2)

Pascagoula, Mississippi

Port Arthur, Texas

November 2025

Port O'Connor (1)

Port O'Connor, Texas

Sabine Pass (2)(3)

Sabine Pass, Texas

September 2036

Amelia Amelia, Louisiana 13,000 August 2023

Dulac (1) Dulac, Louisiana — December 2041

Dock 193 (3) Gueydan, Louisiana 11,000 May 2022

Fourchon Fourchon, Louisiana 80,900 May 2027

Fourchon 16 Fourchon, Louisiana 16,400 July 2048

Galveston T (2) Galveston, Texas 1,400 Own

Intracoastal City (2) Intracoastal City, Louisiana — Own

Jennings Bulk Plant Jennings, Louisiana 9,100

Lake Charles T Lake Charles, Louisiana 1,000 April 2023

Pascagoula (2) Pascagoula, Mississippi 10,100 Own

Port Arthur Port Arthur, Texas 16,300 November 2025

Port O'Connor (1) Port O'Connor, Texas 6,700 March 2028

Sabine Pass (2)(3) Sabine Pass, Texas 16,700 September 2036

(1) This terminal is currently in caretaker status and the lease will not be renewed at the end of the current option.

These terminals are currently in caretaker status.

(2) This terminal is currently in caretaker status.

(3) A portion of this terminal is owned.

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Terminal versatility depends upon the operator’s ability to handle diverse products, some of which have complex or specialized handling and storage requirements.

The service function of a terminal includes, among other things, the safe storage of product at specified temperature, moisture and other conditions and receiving and delivering product to and from the terminal.

The service function of a terminal includes, among other things, the safe storage of product at specified temperature, moisture and other conditions and

receiving and delivering product to and from the terminal.

All of these services must be in compliance with applicable environmental and other regulations.

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The energy and chemical sector relies heavily on the transportation industry to assist in moving mass quantities of petroleum products and by-products, petrochemicals, and chemicals.

Our Truck and Trailer Fleet.

We operate a fleet of land transportation assets comprising approximately 540 tank trucks and 1,275 trailers that transport petroleum products and by-products, petrochemicals, and chemicals.

We operate a fleet of land transportation assets comprising approximately 560 trucks and 1,150 tank trailers that transport petroleum products and by-products, petrochemicals, and chemicals.

Our land transportation assets operate out of 23 strategically located terminals throughout the U.S.

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Terminal Locations

Theodore, Alabama

Tampa, Florida

Beaumont Lube

Hattiesburg, Mississippi

Kenova, West Virginia

Corpus Christi

Texas Louisiana Arkansas Other

Baytown Arcadia Marion Theodore, Alabama

Beaumont Baton Rouge Smackover Tampa, Florida

Beaumont Lube Bossier City Stephens Hattiesburg, Mississippi

Channelview Jennings Kenova, West Virginia

Corpus Christi Lake Charles Tennessee

Kilgore Reserve Chattanooga

Longview Kingsport

Our largest land transportation customers include petroleum, petrochemical, and chemical companies and Martin Resource Management Corporation.

We conduct our land transportation services on a fee basis primarily under spot contracts.

We conduct our land transportation services under fee-based transportation agreements with customers in which we have long term relationships.

We are a party to a master transportation services agreement under which we provide land transportation services to Martin Resource Management Corporation on a demand basis at applicable market rates.

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We transport asphalt, fuel oil, gasoline, sulfur and other bulk liquids.

The following is a summary description of the marine vessels we use in our marine transportation business (excluding equipment classified as "Assets Held for Sale"):

Class of Equipment

Number in Class

Capacity/Horsepower

Description of Products Carried

Inland tank barges

Under 20,000 barrels

Asphalt, crude oil, fuel oil, gasoline and sulfur

Inland tank barges

20,000 - 31,000 barrels

Asphalt, crude oil, fuel oil and gasoline

Inland push boats

800 - 2,650 horsepower

Offshore tank barge

59,000 barrels

Offshore tugboat

5,100 horsepower

The following is a summary description of the marine vessels we use in our marine transportation business :

Class of Equipment Number in Class Capacity/Horsepower Products Transported

Inland tank barges 5 Under 20,000 barrels Asphalt, crude oil, fuel oil, gasoline and sulfur

Inland tank barges 26 20,000 - 31,000 barrels Asphalt, crude oil, fuel oil and gasoline

Inland push boats 14 800 - 2,650 horsepower N/A

Offshore tank barge 1 59,000 barrels Diesel fuel

Offshore tugboat 1 5,100 horsepower N/A

Our largest marine transportation customers include major and independent oil and gas refining companies, petroleum marketing companies and Martin Resource Management Corporation.

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Sulfur is a natural element and is required to produce a variety of industrial products.

In the U.S., approximately 8.5 million tons of sulfur are consumed annually with the Tampa, Florida area being the largest single market.

Sulfur demand in the U.S.

generally averages 8.5 million to 9.5 million tons annually, and is concentrated around large phosphate fertilizer operations primarily located in the southeastern parts of the country.

Currently, all sulfur produced in the U.S.

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We transport sulfur by inland and offshore barges, railcars and trucks.

In the U.S., recovered sulfur is mainly kept in liquid form from production to usage at

a temperature of approximately 275 degrees Fahrenheit.

In the U.S., recovered sulfur is mainly kept in liquid form from production to usage at a temperature of approximately 275 degrees Fahrenheit.

Because of the temperature requirement, the sulfur industry uses specialized equipment to store and transport molten sulfur.

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Our forming services contracts are fee based and typically include minimum fee guarantees.

Our sulfuric acid production facility at our Plainview, Texas location processes molten sulfur to produce a dedicated supply of raw material sulfuric acid to our ammonium sulfate production plant.

The ammonium sulfate plant produces approximately 400 tons per day of quality ammonium sulfate and is marketed to our customers throughout the U.S.

The sulfuric acid produced and not consumed by the captive ammonium sulfate production is sold to third parties.

Fertilizer and related sulfur products are a natural extension of our molten sulfur business because of our access to sulfur and our distribution capabilities.

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We package these custom grade products under both proprietary and private labels and sell them to major retail distributors and other retail customers.

• Sulfuric acid.

Our sulfuric acid production facility at our Plainview, Texas location processes molten sulfur to produce a dedicated supply of raw material sulfuric acid to our ammonium sulfate production plant.

The ammonium sulfate plant produces approximately 400 tons per day of quality ammonium sulfate and is marketed to our customers throughout the U.S.

The sulfuric acid produced and not consumed by the captive ammonium sulfate production is sold to third parties.

• Industrial sulfur products.

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Gulf Coast storage terminals (including our terminal in Beaumont, Texas) under third-party marine transportation agreements:

Class of Equipment

Capacity/Horsepower

Products Transported

Offshore tank barge

10,500 long tons

Molten sulfur

M/V Martin Explorer

Offshore tugboat

7,130 horsepower

M/V Martin Express

Inland push boat

1,200 horsepower

Inland tank barge

2,500 long tons

Molten sulfur

Inland tank barge

2,500 long tons

Molten sulfur

Class of Equipment Number in Class Capacity/Horsepower Products Transported

Offshore tank barge 1 10,500 long tons Molten sulfur

Offshore tugboat 1 7,130 horsepower N/A

Inland push boat 1 1,200 horsepower N/A

Inland tank barge 2 2,500 long tons Molten sulfur

We operate the following sulfur forming facilities as part of our sulfur services business:

Daily Production Capacity

Products Stored

Beaumont, Texas

5,500 metric tons per day

Molten, prilled and granulated sulfur

Stockton, California

1,000 metric tons per day

Molten and prilled sulfur

Terminal Location Daily Production Capacity Products Stored

Neches Beaumont, Texas 5,500 metric tons per day Molten, prilled and granulated sulfur

Stockton Stockton, California 1,000 metric tons per day Molten and prilled sulfur

We lease 131 railcars to transport our fertilizer products.

We own the following manufacturing plants as part of our sulfur services business:

Annual Capacity

Fertilizer plant

Plainview, Texas

Fertilizer production

Fertilizer plant

Beaumont, Texas

Liquid sulfur fertilizer production

Fertilizer plants

Odessa, Texas

Dry sulfur fertilizer production

Fertilizer plant

Seneca, Illinois

Dry sulfur fertilizer production

Fertilizer plant

Cactus, Texas

Dry sulfur fertilizer production

Industrial sulfur plant

Emulsified sulfur production

Sulfuric acid plant

Plainview, Texas

Sulfuric acid production

Facility Location Annual Capacity Description

Fertilizer plant Plainview, Texas 150,000 tons Fertilizer production

Fertilizer plant Beaumont, Texas 110,000 tons Liquid sulfur fertilizer production

Fertilizer plants Odessa, Texas 35,000 tons Dry sulfur fertilizer production

Fertilizer plant Seneca, Illinois 36,000 tons Dry sulfur fertilizer production

Fertilizer plant Cactus, Texas 20,000 tons Dry sulfur fertilizer production

Industrial sulfur plant Nash, Texas 18,000 tons Emulsified sulfur production

Sulfuric acid plant Plainview, Texas 150,000 tons Sulfuric acid production

The Martin Explorer/Margaret Sue articulated barge unit is one of four vessels currently used to transport molten sulfur between U.S.

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We purchase NGLs primarily from major domestic oil refiners and natural gas processors.

We transport NGLs using MTI’s land transportation fleet or by contracting with common carriers, owner-operators and railroad tank cars.

We transport NGLs using Martin Transport Inc.'s ("MTI") land transportation fleet or by contracting with common carriers, owner-operators and railroad tank car transportation companies.

We typically enter into annual contracts with independent retail propane distributors to deliver their estimated annual volume requirements based on prevailing market prices.

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• efficient use of railroad tank cars;

the transportation fleet of vehicles owned by MTI;

• the transportation fleet owned by MTI;

• product management expertise to obtain supplies when needed.

The following is a summary description of our owned NGL facilities:

Wholesale terminals

Arcadia, Louisiana

2,100,000 barrels

Underground storage

Rail terminal

Arcadia, Louisiana

24 railcars per day

NGL railcar loading and unloading capabilities

NGL Facility Location Capacity Description

Wholesale terminals Arcadia, Louisiana 2,100,000 barrels Underground storage

Rail terminal Arcadia, Louisiana 24 railcars per day NGL railcar loading and unloading capabilities

In addition to the owned NGL facilities above, we lease underground storage capacity at four locations under short-term lease agreements.

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This imbalance causes increases in inventories during summer months when consumption is low and decreases in inventories during winter months when consumption is high.

In September, demand for normal butane typically increases with refineries entering the winter gasoline-blending season, resulting in upward pressure on prices.

In September, demand for normal butane typically increases with refineries entering

the winter gasoline-blending season, resulting in upward pressure on prices.

Abnormally cold weather can put extra upward pressure on propane prices during the winter.

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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;

• distributing asphalt, marine fuel and other liquids;

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

• 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 gathering 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;

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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.

For the years ended December 31, 2019 , 2018 , and 2017 , the conflicts committee of our general partner ("Conflicts Committee") approved reimbursement amounts of $16.7 million, $16.4 million and $16.4 million, respectively, reflecting 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.

For the years ended December 31, 2020, 2019, and 2018, the board of directors of our general partner approved reimbursement amounts of $16.4 million, $16.7 million and $16.4 million, respectively, reflecting our allocable share of such expenses.

The board of directors of our general partner will review and approve future adjustments in the reimbursement amount for indirect expenses, if any,

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, environmental and safety compliance, general office expenses and employee benefit plans and other general corporate overhead functions we share with Martin Resource Management Corporation’s retained businesses.

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Other 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 see "Item 13.

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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, our purchases from Martin Resource Management Corporation accounted for approximately 7% , 5% , and 5% of our total cost of products sold during for the years ended December 31, 2019 , 2018 and 2017 , respectively.

In the aggregate, our purchases from Martin Resource Management Corporation accounted for approximately 19%, 17%, and 14% of our total costs and expenses during for the years ended December 31, 2020, 2019 and 2018, respectively.

Correspondingly, Martin Resource Management Corporation is one of our significant customers.

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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 is involved in the approval process, it determines whether to refer the matter to the Conflicts Committee, as provided under our limited partnership agreement.

If the board of directors is involved in the approval process, it determines whether to refer the matter to the Conflicts Committee, as provided under our limited partnership agreement (the "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.

Our deductible for onshore physical damage resulting from named windstorms is 5% of the total value located at an individual location subject to an overall minimum deductible of $1.0 million for damage caused by the named windstorm at all locations excluding Neches Industrial Park.

Our onshore program currently provides $40.0 million per occurrence for named windstorm events.

For non-windstorm events, our deductible applicable to onshore physical damage is $0.5 million per occurrence.

Business interruption coverage in connection with a windstorm event is subject to the same $40.0 million per occurrence and aggregate limit as the property damage coverage and has a waiting period of 45 days.

For non-windstorm events, our waiting period applicable to business interruption is 30 days.

Our deductible for onshore physical damage resulting from named windstorms is 5% of the total value of affected properties.

Excluding Neches Industrial Park, which has no minimum deductible, the overall minimum deductible ranges from $1.0 million to $5.0 million for damage caused by the named windstorm.

Our onshore program currently provides $40.0 million per occurrence for named windstorm events, including business interruption coverage in connection with a named windstorm event and has a waiting period of 45 days.

For non-named windstorms or events, our onshore physical damage deductible is $0.5 million per occurrence for all properties.

Business interruption coverage in connection with a non-named windstorm or event is subject to a $200.0 million per occurrence and aggregate limit as the property damage coverage and has a waiting period of 30 days, excluding the Smackover Refinery which has a waiting period of 45 days.

We have various pollution liability policies which provide coverages ranging from remediation of our property to third party liability.

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Many environmental laws and regulations can impose joint and several, strict liability, and any failure to comply with environmental laws and regulations may result in the assessment of administrative, civil, and criminal penalties, the imposition of investigatory and remedial obligations, and, in some circumstances, the issuance of injunctions that can limit or prohibit our operations.

The clear trend in environmental regulation is to place more restrictions and limitations on activities that may affect the environment, and, thus, any changes in environmental laws and regulations that result in more stringent and costly pollutant control or waste handling, storage, transport, disposal, or remediation requirements could have a material adverse effect on our operations and financial position.

The continuing trend in environmental regulation is to place more restrictions and limitations on activities that may affect the environment, and, thus, any changes in environmental laws and regulations that result in more stringent and costly pollutant control or waste handling, storage, transport, disposal, or remediation requirements could have a material adverse effect on our operations and financial position.

Moreover, there is inherent risk of incurring significant environmental costs and liabilities in the performance of our operations due to our handling of petroleum products and by-products, chemical substances, and wastes as well as the accidental release or spill of such materials into the environment.

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The Federal Comprehensive Environmental Response, Compensation and Liability Act, as amended, ("CERCLA"), also known as the "Superfund" law, and similar state laws, impose liability without regard to fault or the legality of the original conduct, on certain classes of "responsible persons," including the owner or operator of a site where regulated hazardous substances have been released into the environment and companies that disposed or arranged for the disposal of the hazardous substances found at such site.

Under CERCLA, these responsible persons may be subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources, and for the costs of certain health studies, and it is not uncommon for neighboring landowners and other third parties to file claims for personal injury and property damage allegedly caused by the release of hazardous substances into the environment.

to file claims for personal injury and property damage allegedly caused by the release of hazardous substances into the environment.

Although certain hydrocarbons are not subject to CERCLA’s reach because "petroleum" is excluded from CERCLA’s definition of a "hazardous substance," in the course of our ordinary operations we will generate wastes that may fall within the definition of a "hazardous substance." In addition, some state counterparts to CERCLA tie liability to a broader set of substances than does CERCLA.

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In addition, a number of these properties have been operated by third parties over whom we had no control as to such entities’ handling of petroleum, petroleum by-products or other wastes and the manner in which such substances may have been disposed of or released.

State and federal laws and regulations applicable to oil and natural gas wastes and properties have gradually become more strict and,

under such laws and regulations, we could be required to remove or remediate previously disposed wastes or property contamination, including groundwater contamination, even under circumstances where such contamination resulted from past operations of third parties.

State and federal laws and regulations applicable to oil and natural gas wastes and properties have gradually become more strict and, under such laws and regulations, we could be required to remove or remediate previously disposed wastes or property contamination, including groundwater contamination, even under circumstances where such contamination resulted from past operations of third parties.

Clean Air Act

Our operations are subject to the federal Clean Air Act ("CAA"), as amended, and comparable state statutes.

Amendments to the CAA adopted in 1990 contain provisions that may result in the imposition of increasingly stringent pollution control requirements with respect to air emissions from the operations of our terminal facilities, processing and storage facilities and fertilizer and related products manufacturing and processing facilities.

The CAA contains provisions that may result in the imposition of increasingly stringent pollution control requirements with respect to air emissions from the operations of our terminal facilities, processing and storage facilities and fertilizer and related products manufacturing and processing facilities.

Such air pollution control requirements may include specific equipment or technologies to control emissions, permits with emissions and operational limitations, pre-approval of new or modified projects or facilities producing air emissions, and similar measures.

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We believe our operations, including our manufacturing, processing and storage facilities and terminals, are in substantial compliance with applicable requirements of the CAA and analogous state laws.

Global Warming and Climate Change .

Recent scientific studies have suggested that emissions of certain gases, commonly referred to as "greenhouse gases" and including carbon dioxide and methane, may be contributing to warming of the Earth’s atmosphere.

Climate Change .

Scientific studies suggest that emissions of certain gases, commonly referred to as greenhouse gases ("GHGs") and including carbon dioxide and methane, may be contributing to warming of the Earth’s atmosphere.

In response to such studies, the U.S.

Congress has from time to time considered climate change-related legislation to restrict greenhouse gas emissions.

Many states have already taken legal measures to reduce emissions of greenhouse gases, primarily through the planned development of greenhouse gas emission inventories and/or regional greenhouse gas cap and trade programs.

Also, as a result of the U.S.

Supreme Court’s decision on April 2, 2007, in Massachusetts, et al.

EPA , the EPA eventually concluded that it is required to regulate greenhouse gas emissions from mobile sources (e.g., cars and trucks) even if Congress does not adopt new legislation specifically addressing emissions of greenhouse gases.

The Court's holding in Massachusetts that greenhouse gases fall under the federal CAA's definition of air pollutant has also led the EPA to determine that regulation of greenhouse gas emissions from stationary sources under various Clean Air Act programs is required.

To that end, EPA promulgated regulations, referred to as the Tailoring Rule, 75 Fed.

31514, to begin gradually subjecting stationary greenhouse gas emission sources to various Clean Air Act programs, including permitting programs applicable to new and existing major sources of greenhouse gas emissions.

In reviewing the regulations at issue, the Supreme Court struck down EPA’s permitting requirements as applicable only to greenhouse gas emissions, although it upheld the EPA’s authority to control greenhouse gas emissions when a permit is required due to emissions of other pollutants.

On an international level, almost 200 nations agreed in December 2015 to an international climate change agreement in Paris, France that calls for countries to set their own greenhouse gas emissions targets and be transparent about the measures each country will use to achieve its emissions targets.

In August 2017, the U.S.

State Department officially informed the United Nations of the intent of the United States to withdraw from the Paris Agreement.

Notice of such withdrawal occurred on November 4, 2019, and will be effective one year from the date of delivery of such notice.

Whether the United States may reenter the Paris Agreement or a separately negotiated agreement is unclear at this time.

It is not possible at this time to predict how or when the United States might impose restrictions on GHGs as a result of this or another international climate change agreement.

Further, several states and local governments have stated their commitment to its principles in their effectuation of policy and regulations.

To date, applicable requirements have not had a substantial effect upon our operations.

Still, new legislation or regulatory programs that restrict emissions of greenhouse gases in areas in which we conduct business could adversely affect our operations and demand for our services.

Moreover, in interpretative guidance on climate change disclosures, the U.S.

Securities and Exchange Commission ("SEC") indicates that climate change could have an effect on the severity of weather (including hurricanes and floods), sea levels, the arability of farmland, and water availability and quality.

Congress has from time to time considered climate change-related legislation to restrict GHG emissions.

Many states have already taken legal measures to reduce emissions of GHGs, primarily through the planned development of GHG emission inventories and/or regional GHG cap and trade programs.

Additionally, as a result of the April 2007 U.S.

Supreme Court ruling in Massachusetts, et al.

EPA that the EPA has authority to regulate carbon dioxide emissions under the CAA, the EPA has taken several steps towards implementing regulations regarding the emission of GHGs.

In 2009, the EPA issued a final rule declaring that six GHGs "endanger both the public health and the public welfare of current and future generations." The issuance of this "endangerment finding" allows the EPA to regulate GHG emissions under existing provisions of the federal CAA.

Further, in December 2015, over 190 countries, including the United States, reached an agreement to reduce global GHG emissions ("Paris Agreement").

The Paris Agreement entered into force in November 2016, after over 70 countries, including the United States, ratified or otherwise consented to be bound by the agreement.

In November 2020, the United States formally withdrew from the Paris Agreement.

However, on January 20, 2021, President Biden signed an “Acceptance on Behalf of the United States of America” that will allow the U.S.

to rejoin the Paris Agreement.

The newly signed acceptance, deposited with the United Nations on January 20, 2021, reverses the prior withdrawal.

The United States will officially rejoin the Paris Agreement on February 19, 2021.

In addition, shortly after taking office in January 2021, President Biden issued a series of executive orders designed to address climate change.

Reentry into the Paris Agreement and President Biden’s executive orders

may result in the development of additional regulations or changes to existing regulations, which could have a material adverse effect on our business and that of our customers.

Several states and local governments have also stated their commitment to the principles of the Paris Agreement in their effectuation of policy and regulations.

To date, such applicable requirements have not had a substantial effect upon our operations.

Still, new legislation or regulatory programs that restrict emissions of GHGs in areas in which we conduct business could adversely affect our operations and demand for our services.

Moreover, climate change could have an effect on the severity of weather (including hurricanes and floods), sea levels, the arability of farmland, and water availability and quality.

If such effects were to occur, our operations have the potential to be adversely affected.

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Clean Water Act

The Federal Water Pollution Control Act of 1972, as amended, also known as Clean Water Act and comparable state laws impose restrictions and strict controls regarding the discharge of pollutants, including hydrocarbon-bearing wastes, into state waters and waters of the U.S.

The Federal Water Pollution Control Act of 1972, as amended, also known the Clean Water Act and comparable state laws impose restrictions and strict controls regarding the discharge of pollutants, including hydrocarbon-bearing wastes, into state waters and waters of the United States.

Pursuant to the Clean Water Act and similar state laws, a National Pollutant Discharge Elimination System permit, or a state permit, or both, must be obtained to discharge pollutants into federal and state waters.

In addition, the Clean Water Act and comparable state laws require that individual permits or coverage under general permits be obtained by subject facilities for discharges of storm water runoff.

Furthermore, the Clean Water Act potentially requires individual permits or qualification for nationwide permits for activities that involve the discharge of dredged or fill material into waters of the United States, the definition of which was expanded by the EPA and Army Corps of Engineers in a 2015 rulemaking.

However, in October 2019, the subject rule was repealed and the pre-2015 regulatory text was re-codified, with changes effective December 23, 2019.

The newly finalized rule has already been challenged in court.

The scope of the CWA’s jurisdiction will likely remain fluid until a final regulatory determination is made and subsequent litigation, if any, is finalized.

To the extent a rule ultimately promulgated expands the scope of the CWA’s jurisdiction, we could face increased costs and delays with respect to permitting.

In June 2015, the EPA and the U.S.

Army Corps of Engineers finalized a rule intended to clarify the meaning of the term "waters of the United States," which established the scope of regulated waters under the Clean Water Act.

However, in October 2019, the subject rule was repealed and the pre-2015 regulatory text was re-codified.

In April 2020, the EPA and the Army Corps of Engineers issued the final Navigable Waters Protection Rule amending the definition of "water of the United States" and replacing the EPA's October 2019 final rule.

Judicial challenges to EPA’s October 2019 and April 2020 final rules are currently before multiple federal district courts.

Additionally, the rules are among agency actions listed for review in accordance with President Biden’s January 20, 2021 Executive Order:

"Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis.

" If the rules are vacated and the expanded scope of jurisdiction in the 2015 rule is ultimately implemented, or to the extent that any future rules expand the scope of the Clean Water Act's jurisdiction , we could face increased costs and delays with respect to permitting.

We believe that we are in substantial compliance with Clean Water Act permitting requirements as well as the conditions imposed thereunder, and that our continued compliance with such existing permit conditions will not have a material adverse effect on our business, financial condition or results of operations.

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A "responsible party" includes the owner or operator of a facility or vessel or the lessee or permittee of the area in which an offshore facility is located.

The OPA assigns liability to each responsible party for oil removal costs and a variety of public and private damages including natural resource damages.

Under the OPA, vessels and shore facilities handling, storing, or transporting oil are required to develop and implement oil spill response plans, and vessels greater than 300 tons in weight must provide to the U.S.

OPA assigns liability to each responsible party for oil removal costs and a variety of public and private damages including natural resource damages.

Under OPA, vessels and shore facilities handling, storing, or transporting oil are required to develop and implement oil spill response plans, and vessels greater than 300 tons in weight must provide to the U.S.

Coast Guard evidence of financial responsibility to cover the costs of cleaning up oil spills from such vessels.

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We believe we are in substantial compliance with all of the oil spill-related and financial responsibility requirements.

Nonetheless, in the aftermath of the Deepwater Horizon incident in 2010, Congress has from time to time considered oil spill related legislation that could have the effect of substantially increasing financial responsibility requirements and potential fines and damages for violations and discharges subject to the OPA, and similar legislation.

Any such changes in law affecting areas where we conduct business could materially affect our operations.

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Coast Guard, federal laws, state laws and certain international treaties.

Tank ships, push boats, tugboats and barges are required to meet construction and repair standards established by the American Bureau of Shipping, a private organization, and the U.S.

Tank ships, push boats, tugboats and barges are required to meet construction and repair standards established by the American Bureau of Shipping, a recognized classification society, and the U.S.

Coast Guard and to meet operational and safety standards presently established by the U.S.

We believe our marine operations and our terminals are in substantial compliance with current applicable safety requirements.

Occupational Health Regulations

The workplaces associated with our manufacturing, processing, terminal and storage facilities are subject to the requirements of the federal Occupational Safety and Health Act ("OSHA") and comparable state statutes.

We believe we have conducted our operations in substantial compliance with OSHA requirements, including general industry standards, record keeping requirements and monitoring of occupational exposure to regulated substances.

Occupational Safety and Health Regulations

We believe we have conducted our operations in substantial compliance with OSH Act requirements, including general industry standards, record keeping requirements and monitoring of occupational exposure to regulated substances.

Our marine vessel operations are also subject to safety and operational standards established and monitored by the U.S.

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This results in lower shipyard costs both for new vessels and repairs than those paid by U.S.-flagged vessel owners.

Coast Guard and American Bureau of Shipping maintain the most stringent regimen of vessel inspection in the world, which tends to result in higher regulatory compliance costs for U.S.-flagged operators than for owners of vessels registered under foreign flags of convenience.

Coast Guard and American Bureau of Shipping maintain a stringent regimen of vessel inspections, which tends to result in higher regulatory compliance costs for U.S.-flagged operators than for owners of vessels registered under foreign flags of convenience.

Merchant Marine Act of 1936

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Some of these possible changes include increasingly stringent environmental regulations, changes in the hours of service regulations which govern the amount of time a driver may drive or work in any specific period, onboard black box recorder device requirements, or limits on vehicle weight and size.

Moreover, various legislative proposals are occasionally introduced, including proposals to increase federal, state, or local taxes on motor fuels, among other things, which may increase our costs or adversely impact the recruitment of drivers.

Moreover, various legislative proposals are occasionally introduced, including proposals to increase federal, state, or local taxes

on motor fuels, among other things, which may increase our costs or adversely impact the recruitment of drivers.

We cannot predict whether, or in what form, any increase in such taxes applicable to us will be enacted.

Human Capital

We do not have any employees.

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These services include centralized corporate functions, such as accounting, treasury, engineering, information technology, insurance, administration of employee benefit plans and other corporate services.

Martin Resource Management Corporation employs approximately 1,292 individuals, including 53 employees represented by labor unions, who provide direct support to our operations as of December 31, 2019 .

Martin Resource Management Corporation has approximately 1,500 employees of which 1,130 individuals, including 59 individuals represented by labor unions, provide direct support to our operations as of December 31, 2020.

Martin Resource Management Corporation employees are responsible for conducting our business and operating our assets on our behalf.

In addition, 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.

Financial Information about Segments

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Access to Public Filings

We provide public access to our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports filed with the SEC under the Exchange Act.

We provide public access to our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports filed with the U.S.

Securities and Exchange Commission (the "SEC") under the Exchange Act.

These documents may be accessed free of charge on our website at the following address:

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business