MARTIN MIDSTREAM PARTNERS L.P. 10-K

Item 8. Financial Statements and Supplementary Data The following financial statements of Martin Midstream Partners L.P. (Partnership) are listed below: Page Report of Independent Registered Public Accounting Firm (KPMG LLP, Dallas, TX, Auditor Firm ID 185 ) 68 Consolidated Balance Sheets as of December 31, 2025 and 2024 71 Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023 72 Consolidated Statements of Changes in Capital (Deficit) for the years ended December 31, 2025, 2024 and 2023 74 Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023 75 Notes to Consolidated Financial Statements 76 67 Report of Independent Registered Public Accounting Firm To the Unitholders and Board of Directors Martin Midstream Partners L.P. and Martin Midstream GP LLC: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Martin Midstream Partners L.P. and subsidiaries (the Partnership) as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in capital (deficit), and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Partnership’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 23, 2026 expressed an unqualified opinion on the effectiveness of the Partnership’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Sufficiency of audit evidence over revenue As discussed in Note 5 to the consolidated financial statements, the Partnership recorded approximately $716 million of revenue for the year ended December 31, 2025. Revenue is derived from various revenue streams including throughput and storage; land transportation, inland marine transportation and offshore marine transportation; sulfur and fertilizer product sales, sulfur services, and natural gas liquids and lubricant product sales. The Partnership’s processes used to record revenue differ for each of these revenue streams, as do the related information technology (IT) systems for certain of these revenue streams. We identified the evaluation of the sufficiency of audit evidence obtained over revenue as a critical audit matter. A high degree of subjective auditor judgment was required to evaluate such evidence due to the number of revenue streams and IT systems involved. This included determining the revenue streams over which procedures would be performed and evaluating the nature and extent of audit evidence obtained over each revenue stream. The audit effort also required specialized skills and knowledge to evaluate the various IT systems. 68 The following are the primary procedures we performed to address this critical audit matter. We, with the assistance of IT professionals, applied auditor judgment to determine the nature and extent of procedures to be performed over revenue, including the determination of the revenue streams over which those procedures were performed. For each revenue stream where procedures were performed, we evaluated the design and tested the operating effectiveness of certain internal controls over the Partnership’s process to record revenue, and involved IT professionals, who assisted in testing certain IT applications. For certain revenue streams where procedures were performed, we assessed the recorded revenue by selecting a sample of transactions and comparing the revenue recorded for consistency with the underlying contractual documentation and comparing with the related customer payment received associated with the transactions. For other revenue streams where procedures were performed, we performed a software-assisted data analysis to test relationships among certain revenue transactions. Through these procedures we then compared the amounts recognized for consistency with underlying documentation, including contracts or payment and transaction support. We evaluated the sufficiency of audit evidence obtained over revenue by assessing the results of procedures performed, including the appropriateness of the nature and extent of such evidence. /s/ KPMG LLP We have served as the Partnership’s auditor since 2002. Dallas, Texas February 23, 2026 69 Report of Independent Registered Public Accounting Firm To the Unitholders and Board of Directors Martin Midstream Partners L.P. and Martin Midstream GP LLC: Opinion on Internal Control Over Financial Reporting We have audited Martin Midstream Partners L.P. and subsidiaries' (the Partnership) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Partnership as of December 31, 2025 and 2024, the related consolidated statements of operations, changes in capital (deficit), and cash flows for each of the years in the three-year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements), and our report dated February 23, 2026 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Dallas, Texas February 23, 2026 70 MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) December 31, 2025 2024 Assets Cash $ 49 $ 55 Trade and accrued accounts receivable, less allowance for doubtful accounts of $ 310 and $ 940 , respectively 58,371 53,569 Inventories 50,248 51,707 Due from affiliates 8,942 13,694 Other current assets 12,298 11,454 Total current assets 129,908 130,479 Property, plant and equipment, at cost 970,753 954,059 Accumulated depreciation ( 681,527 ) ( 648,609 ) Property, plant and equipment, net 289,226 305,450 Goodwill 16,671 16,671 Right-of-use assets 69,938 67,140 Investment in DSM Semichem LLC 6,198 7,314 Deferred income taxes, net 9,026 9,946 Intangibles and other assets, net 1,451 1,509 $ 522,418 $ 538,509 Liabilities and Partners’ Capital (Deficit) Current portion of long term debt and finance lease obligations $ 15 $ 14 Trade and other accounts payable 57,814 61,599 Product exchange payables 169 798 Due to affiliates 13,286 4,927 Income taxes payable 1,580 1,283 Other accrued liabilities 51,279 46,880 Total current liabilities 124,143 115,501 Long-term debt, net 428,008 437,635 Finance lease obligations 39 55 Operating lease liabilities 48,353 47,815 Other long-term obligations 7,670 7,942 Total liabilities 608,213 608,948 Commitments and contingencies Partners’ capital (deficit) ( 85,795 ) ( 70,439 ) Total partners’ capital (deficit) ( 85,795 ) ( 70,439 ) $ 522,418 $ 538,509 See accompanying notes to consolidated financial statements. 71 MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per unit amounts) Year Ended December 31, 2025 2024 2023 Revenues: Terminalling and storage * $ 90,831 $ 89,067 $ 86,514 Transportation * 212,509 223,934 223,677 Sulfur services 16,441 14,572 13,430 Product sales: * Specialty products 248,694 264,850 346,777 Sulfur services 147,638 115,199 127,565 396,332 380,049 474,342 Total revenues 716,113 707,622 797,963 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Specialty products * 217,157 228,600 305,903 Sulfur services * 101,466 68,364 83,702 Terminalling and storage * — 72 75 318,623 297,036 389,680 Expenses: Operating expenses * 258,431 255,586 252,211 Selling, general and administrative * 42,004 48,502 40,826 Depreciation and amortization 50,197 50,787 49,895 Total costs and expenses 669,255 651,911 732,612 Other operating income (loss), net 2,039 1,584 1,373 Operating income 48,897 57,295 66,724 Other income (expense): Interest expense, net ( 57,787 ) ( 57,706 ) ( 60,290 ) Equity in loss of DSM Semichem LLC ( 1,116 ) ( 624 ) — Loss on extinguishment of debt — — ( 5,121 ) Other, net 33 25 56 Total other income (expense) ( 58,870 ) ( 58,305 ) ( 65,355 ) Net income (loss) before taxes ( 9,973 ) ( 1,010 ) 1,369 Income tax expense ( 4,772 ) ( 4,197 ) ( 5,918 ) Net loss ( 14,745 ) ( 5,207 ) ( 4,549 ) Less general partner's interest in net loss 295 104 91 Less loss allocable to unvested restricted units 61 25 14 Limited partners' interest in net loss $ ( 14,389 ) $ ( 5,078 ) $ ( 4,444 ) Net loss per unit attributable to limited partners - basic and diluted $ ( 0.37 ) $ ( 0.13 ) $ ( 0.11 ) Weighted average limited partner units - basic and diluted 38,890,039 38,831,355 38,771,657 *Related Party Transactions Shown Below See accompanying notes to consolidated financial statements. 72 MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per unit amounts) * Related Party Transactions Included Above Year Ended December 31, 2025 2024 2023 Revenues: Terminalling and storage $ 72,244 $ 71,799 $ 72,138 Transportation 30,428 33,250 29,276 Sulfur Services — 664 — Product sales 4,243 457 8,767 Costs and expenses: Cost of products sold: (excluding depreciation and amortization) Specialty products 28,626 31,789 35,930 Sulfur services 12,885 11,915 11,182 Terminalling and storage — 72 75 Expenses: Operating expenses 111,169 106,831 100,851 Selling, general and administrative 31,698 39,385 32,021 See accompanying notes to consolidated financial statements. 73 MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (DEFICIT) (Dollars in thousands) Partners’ Capital (Deficit) Common General Partner Amount Units Amount Total Balances – December 31, 2022 38,850,750 $ ( 61,110 ) $ 1,665 ( 59,445 ) Net loss — ( 4,458 ) ( 91 ) ( 4,549 ) Issuance of time-based restricted units 64,056 — — — Cash distributions — ( 777 ) ( 16 ) ( 793 ) Unit-based compensation — 163 — 163 Balances – December 31, 2023 38,914,806 ( 66,182 ) 1,558 ( 64,624 ) Net loss — ( 5,103 ) ( 104 ) ( 5,207 ) Issuance of time-based restricted units 86,280 — — — Cash distributions — ( 779 ) ( 16 ) ( 795 ) Unit-based compensation — 187 — 187 Balances – December 31, 2024 39,001,086 ( 71,877 ) 1,438 ( 70,439 ) Net loss — ( 14,450 ) ( 295 ) ( 14,745 ) Issuance of time-based restricted units 54,000 — — — Cash distributions — ( 781 ) ( 16 ) ( 797 ) Unit-based compensation — 186 — 186 Balances – December 31, 2025 39,055,086 $ ( 86,922 ) $ 1,127 $ ( 85,795 ) See accompanying notes to consolidated financial statements. 74 MARTIN MIDSTREAM PARTNERS L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) Year Ended December 31, 2025 2024 2023 Cash flows from operating activities: Net loss $ ( 14,745 ) $ ( 5,207 ) $ ( 4,549 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 50,197 50,787 49,895 Amortization and write-off of deferred debt issue costs 3,280 3,085 3,978 Amortization of discount on notes payable 2,400 2,400 2,200 Deferred income tax expense 920 254 4,186 Gain on disposition or sale of property, plant, and equipment ( 2,039 ) ( 1,584 ) ( 1,373 ) Loss on extinguishment of debt — — 5,121 Equity in loss of DSM Semichem LLC 1,116 624 — Unit-based compensation 186 187 163 Change in current assets and liabilities, excluding effects of acquisitions and dispositions: Accounts and other receivables ( 4,802 ) ( 276 ) 26,348 Inventories 1,459 ( 8,079 ) 65,976 Due from affiliates 4,752 ( 5,770 ) 86 Other current assets ( 2,880 ) 88 4,739 Trade and other accounts payable ( 3,270 ) 10,228 ( 17,539 ) Product exchange payables ( 629 ) 372 394 Due to affiliates 8,359 ( 1,407 ) ( 2,613 ) Income taxes payable 297 631 ( 13 ) Other accrued liabilities 1,663 600 2,880 Change in other non-current assets and liabilities ( 138 ) 1,418 ( 2,411 ) Net cash provided by operating activities 46,126 48,351 137,468 Cash flows from investing activities: Payments for property, plant, and equipment ( 24,768 ) ( 42,008 ) ( 34,317 ) Payments for plant turnaround costs ( 7,368 ) ( 10,897 ) ( 4,825 ) Investment in DSM Semichem LLC — ( 6,938 ) — Proceeds from sale of property, plant, and equipment 2,123 1,242 5,482 Net cash used in investing activities ( 30,013 ) ( 58,601 ) ( 33,660 ) Cash flows from financing activities: Payments of long-term debt ( 235,500 ) ( 244,500 ) ( 632,197 ) Payments under finance lease obligations ( 14 ) ( 9 ) ( 9 ) Proceeds from long-term debt 221,000 255,578 543,489 Payments of debt issuance costs ( 808 ) ( 23 ) ( 14,289 ) Cash distributions paid ( 797 ) ( 795 ) ( 793 ) Net cash provided by (used in) financing activities ( 16,119 ) 10,251 ( 103,799 ) Net increase (decrease) in cash ( 6 ) 1 9 Cash at beginning of year 55 54 45 Cash at end of year $ 49 $ 55 $ 54 See accompanying notes to consolidated financial statements. 75 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the Gulf Coast region of the U.S. Its four primary business lines include: terminalling, processing, and storage services for petroleum products and by-products; land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marketing, distribution, and transportation services for natural gas liquids ("NGL") and blending and packaging services for specialty lubricants and grease. The Partnership provides specialty services to major and independent oil and gas companies, independent refiners, large 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. The petroleum products and by-products the Partnership gathers, transports, stores and markets are produced primarily by major and independent oil and gas companies who often rely on third parties, such as the Partnership, for the transportation and disposition of these products. Martin Resource Management Corporation indirectly owns, through its wholly owned subsidiary, Martin Resource LLC, 100 % of MMGP Holdings, LLC ("Holdings"), which is the sole member of Martin Midstream GP LLC ("MMGP"), the general partner of the Partnership. As a result, Martin Resource Management Corporation indirectly owns 100 % of MMGP. NOTE 2. SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (a) Principles of Presentation and Consolidation The consolidated financial statements include the financial statements of the Partnership and its wholly owned subsidiaries and equity method investees. In the opinion of the management of the Partnership’s general partner, all adjustments and elimination of significant intercompany balances necessary for a fair presentation of the Partnership’s results of operations, financial position and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. In addition, the Partnership evaluates its relationships with other entities to identify whether they are variable interest entities under certain provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"), 810-10 and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Partnership is the primary beneficiary, then that entity is included in the consolidated financial statements in accordance with ASC 810-10. No such variable interest entities existed as of December 31, 2025 or 2024. (b) Product Exchanges The Partnership enters into product exchange agreements with third parties, whereby the Partnership agrees to exchange NGLs and sulfur with third parties. The Partnership records the balance of exchange products due to other companies under these agreements at quoted market product prices and the balance of exchange products due from other companies at the lower of cost or market. Cost is determined using the first-in, first-out ("FIFO") method. Product exchanges with the same counterparty are entered into in contemplation of one another and are combined. The net amount related to location differentials is reported in "Product sales" or "Cost of products sold" in the Consolidated Statements of Operations. (c) Inventories Inventories are stated at the lower of cost or net realizable value. NGLs, sulfur, and all other inventories not otherwise specified are accounted for using the FIFO method. Lubricants, greases, and lubricant packaging inventories are accounted for using standard cost, which approximates actual cost. Fertilizer inventories are accounted for using weighted average cost, which approximates actual cost. 76 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) (d) Revenue Recognition Terminalling and Storage – Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For storage and throughput contracts at the Partnership's underground NGL storage facility, revenue is recognized based on the volume stored and moved through the facility at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. Transportation – Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services – Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of the product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Specialty Products – NGL revenue is recognized when title is transferred, which is generally when the product is delivered by truck, rail, or pipeline to the Partnership's NGL customers or when the customer picks up the product from our facilities. When lubricants are sold by truck or rail, revenue is recognized when title is transferred, which is generally when the product leaves the Partnership's facility, but can vary based on the specific terms of the contract. The product is invoiced as the transaction occurs and is generally paid within a month. (e) Equity Method Investments The Partnership uses the equity method of accounting for investments in unconsolidated entities where the ability to exercise significant influence over such entities exists. Investments in unconsolidated entities consist of capital contributions and advances plus the Partnership’s share of accumulated earnings as of the entities’ latest fiscal year-ends, less capital withdrawals and distributions. Equity method investments are subject to impairment under the provisions of ASC 323-10, which relates to the equity method of accounting for investments in common stock. No portion of the net income from these entities is included in the Partnership’s operating income. (f) Property, Plant, and Equipment Owned property, plant, and equipment is stated at cost, less accumulated depreciation. Owned buildings and equipment are depreciated using the straight-line method over the estimated lives of the respective assets. Equipment under finance leases is stated at the present value of minimum lease payments less accumulated amortization. Equipment under finance leases is amortized on a straight-line basis over the estimated useful life of the asset. Routine maintenance and repairs are charged to expense while costs of betterments and renewals are capitalized. When an asset is retired or sold, its cost and related accumulated depreciation are removed from the accounts, and the difference between net book value of the asset and proceeds from disposition is recognized as gain or loss. (g) Goodwill and Other Intangible Assets Goodwill is subject to a fair-value based impairment test on an annual basis, or more often if events or circumstances indicate there may be impairment. The Partnership is required to identify its reporting units and determine the carrying value of each reporting unit by assigning the assets and liabilities, including the existing goodwill and intangible assets. The Partnership is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. 77 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) When assessing the recoverability of goodwill and other intangible assets, the Partnership may first assess qualitative factors in determining whether it is more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount. After assessing qualitative factors, if the Partnership determines that it is not more likely than not that the fair value of a reporting unit or other intangible asset is less than its carrying amount, then performing a quantitative assessment is not required. If an initial qualitative assessment indicates that it is more likely than not the carrying amount exceeds the fair value of a reporting unit or other intangible asset, a quantitative analysis will be performed. The Partnership may also elect to bypass the qualitative assessment and proceed directly to a quantitative analysis depending on the facts and circumstances. Of the Partnership's four reporting units, the terminalling and storage, transportation, specialty products and sulfur services reporting units all contain goodwill. In performing a quantitative analysis, recoverability of goodwill for each reporting unit is measured using a weighting of the discounted cash flow method and two market approaches (the guideline public company method and the guideline transaction method). The discounted cash flow model incorporates discount rates commensurate with the risks involved. Use of a discounted cash flow model is common practice in assessing impairment in the absence of available transactional market evidence to determine the fair value. The key assumptions used in the discounted cash flow valuation model include discount rates, growth rates, cash flow projections and terminal value rates. Discount rates, growth rates and cash flow projections are the most sensitive and susceptible to change as they require significant management judgment. Discount rates are determined by using a weighted average cost of capital ("WACC"). The WACC considers market and industry data as well as company-specific risk factors for each reporting unit in determining the appropriate discount rate to be used. The discount rate utilized for each reporting unit is indicative of the return an investor would expect to receive for investing in such a business. Management, considering industry and company specific historical and projected data, develops growth rates and cash flow projections for each reporting unit. Terminal value rate determination follows common methodology of capturing the present value of perpetual cash flow estimates beyond the last projected period assuming a constant WACC and low long-term growth rates. If the calculated fair value is less than the current carrying amount, the Partnership will record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Significant changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit which could give rise to future impairment. Changes to these estimates and assumptions can include, but may not be limited to, varying commodity prices, volume changes and operating costs due to market conditions and/or alternative providers of services. Based upon the most recent annual review as of August 31, 2025, no goodwill impairment exists within the Partnership's reporting units for the year ended December 31, 2025. No goodwill impairment was recorded for the years ended December 31, 2024 or 2023. Other intangible assets that have finite lives are tested for impairment when events or circumstances indicate that the carrying value may not be recoverable. An impairment is indicated if the carrying amount of a long-lived intangible asset exceeds the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the asset. If impairment is indicated, the Partnership would record an impairment loss equal to the difference between the carrying value and the fair value of the asset. There were no intangible asset impairments for the years ended December 31, 2025, 2024 or 2023. (h) Debt Issuance Costs Debt issuance costs relating to the Partnership’s credit facility and senior notes are deferred and amortized over the terms of the debt arrangements and are shown, net of accumulated amortization, as a reduction of the related long-term debt. In connection with the issuance, amendment, expansion and restatement of debt arrangements, the Partnership incurred debt issuance costs of $ 808 , $ 23 and $ 14,289 in the years ended December 31, 2025, 2024 and 2023, respectively. Amortization and write-off of debt issuance costs, which is included in interest expense, totaled $ 3,280 , $ 3,085 and $ 3,978 for the years ended December 31, 2025, 2024 and 2023, respectively. Accumulated amortization amounted to $ 35,677 and $ 32,397 at December 31, 2025 and 2024, respectively. 78 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) (i) Impairment of Long-Lived Assets In accordance with ASC 360-10, long-lived assets, such as property, plant and equipment, and intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. (j) Asset Retirement Obligations Under ASC 410-20, which relates to accounting requirements for costs associated with legal obligations to retire tangible, long-lived assets, the Partnership records an asset retirement obligation at present value based upon estimated costs to retire the asset in the period in which it is incurred by increasing the carrying amount of the related long-lived asset. In each subsequent period, the liability is accreted over time towards the ultimate obligation amount and the capitalized costs are depreciated over the useful life of the related asset. (k) Use of Estimates Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the U.S. Actual results could differ from those estimates. (l) Environmental Liabilities and Litigation The Partnership’s policy is to accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remedial feasibility study. Such accruals are adjusted as further information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. (m) Trade and Accrued Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Partnership’s best estimate of the amount of probable credit losses in the Partnership’s existing accounts receivable. (n) Deferred Catalyst Costs The cost of the periodic replacement of catalysts is deferred and amortized over the catalyst’s estimated useful life, which ranges from 12 to 36 months. (o) Deferred Turnaround Costs The Partnership capitalizes the cost of major turnarounds and amortizes these costs over the estimated period to the next turnaround, which ranges from 12 to 36 months. 79 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) (p) Income Taxes The Partnership is subject to the Texas margin tax, which is considered a state income tax, and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. The Partnership's financial statements recognize the current and deferred income tax consequences that result from the activities of its wholly owned C-Corporation subsidiary, Martin Transport, Inc. ("MTI"), during the current period pursuant to the provisions of the FASB ASC 740 related to income taxes. As a result of the common control transaction with the Partnership, the deferred tax consequences of the changes in the tax bases of MTI’s assets and liabilities were included in equity under the provisions of ASC 740-20-45-11. With respect to MTI, income taxes are accounted for under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In the ordinary course of business, there may be many transactions and calculations where the ultimate tax outcome is uncertain. The calculation of tax liabilities involves dealing with uncertainties in the application of complex tax laws. In accordance with the provisions of ASC 740, we use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return. In the first step, “recognition”, the Partnership determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the Partnership presumes that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. In the second step, “measurement”, a tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement based upon management’s intent regarding negotiation and litigation. In evaluating all income tax positions for all open years, management has determined all positions are more likely than not to be sustained at full benefit based upon their technical merit under applicable tax laws. NOTE 3. RECENT ACCOUNTING PRONOUNCEMENTS In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 requires annual and interim disclosures that are expected to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Partnership adopted ASU 2023-07 and its expanded segment disclosure requirements in compliance with the required adoption guidelines. In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” ("ASU 2023-09"), which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The provisions of ASU 2023-09 are effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Partnership adopted ASU 2023-09 and its expanded disclosure requirements, on a retrospective basis, in compliance with the required adoption guidelines. 80 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 4. EXIT ACTIVITIES AND DIVESTITURES During the second quarter of 2023, the Partnership completed the exit from its butane optimization business at the conclusion of the butane selling season. This exit did not qualify as discontinued operations in accordance with ASC 205. Going forward, with respect to butane, the Partnership will operate as a fee-based butane logistics business, primarily continuing to utilize its north Louisiana underground storage assets, which have both truck and rail capability. This logistics business utilizes the Partnership's truck transportation assets for fee-based product movements. As a result of this new business model, the Partnership no longer carries butane inventory, reducing commodity risk exposure, cash flow and earnings volatility, and working capital requirements. The following revenues and costs, which are included in the financial results for all periods presented, are not expected to be incurred under the new fee-based butane logistics business model. The butane optimization business has historically been included in the Partnership's Specialty Products operating segment. 2025 2024 2023 Products revenue $ — $ — $ 70,539 Cost of products sold — — 72,283 Selling, general and administrative expenses — — 512 $ — $ — $ ( 2,256 ) NOTE 5. REVENUE The following table disaggregates our revenue by major source: 2025 2024 2023 Terminalling and storage segment Throughput and storage $ 90,831 $ 89,067 $ 86,514 $ 90,831 $ 89,067 $ 86,514 Transportation segment Land transportation $ 156,300 $ 165,353 $ 166,717 Inland transportation 46,955 51,826 50,890 Offshore transportation 9,254 6,755 6,070 $ 212,509 $ 223,934 $ 223,677 Sulfur service segment Sulfur product sales $ 38,380 $ 31,347 $ 30,170 Fertilizer product sales 109,258 83,852 97,395 Sulfur services 16,441 14,572 13,430 $ 164,079 $ 129,771 $ 140,995 Specialty products segment Natural gas liquids product sales $ 139,940 $ 144,238 $ 214,713 Lubricant product sales 108,754 120,612 132,064 $ 248,694 $ 264,850 $ 346,777 Total revenues $ 716,113 $ 707,622 $ 797,963 Revenue is measured based on a consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties where the Partnership is acting as an agent. The Partnership recognizes revenue when the Partnership satisfies a performance obligation, which typically occurs when the Partnership transfers control over a product to a customer or as the Partnership delivers a service. 81 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) The following is a description of the principal activities - separated by reportable segments - from which the Partnership generates revenue. Terminalling and Storage Segment Revenue is recognized for storage contracts based on the contracted monthly tank fixed fee. For throughput contracts, revenue is recognized based on the volume moved through the Partnership’s terminals at the contracted rate. For storage and throughput contracts at the Partnership's underground NGL storage facility, revenue is recognized based on the volume stored and moved through the facility at the contracted rate. For the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility. Throughput and storage revenue in the table above includes non-cancelable revenue arrangements that are under the scope of ASC 842, whereby the Partnership has committed certain Terminalling and Storage assets in exchange for a minimum fee. Transportation Segment Revenue related to land transportation is recognized for line hauls based on a mileage rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Revenue related to marine transportation is recognized for time charters based on a per day rate. For contracted trips, revenue is recognized upon completion of the particular trip. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Sulfur Services Segment Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Revenue from sulfur services is recognized as services are performed during each monthly period. The performance of the service is invoiced as the transaction occurs and is generally paid within a month. Specialty Products Segment NGL revenue is recognized when title is transferred, which is generally when the product is delivered by truck, rail, or pipeline to the Partnership's NGL customers or when the customer picks up the product from our facilities. When lubricants are sold by truck or rail, revenue is recognized when title is transferred, which is generally when the product leaves the Partnership's facility, but can vary based on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. Natural gas liquids product sales for 2023 include $ 70,539 of revenues attributable to the Partnership’s former butane optimization business, which was exited during the second quarter of 2023 (see Note 4, Exit Activities and Divestitures). Following the exit, the Partnership transitioned to a fee-based butane logistics model and no longer records product sales related to this activity. The table below includes estimated minimum revenue expected to be recognized in the future related to performance obligations that are unsatisfied at the end of the reporting period. The Partnership applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations that have original expected durations of one year or less. 82 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) 2026 2027 2028 2029 2030 Thereafter Total Terminalling and Storage Throughput and storage $ 45,672 $ 47,042 $ 48,454 $ 49,907 $ 51,404 $ 52,947 $ 295,426 Specialty Products Natural Gas Liquids 3,934 — — — — — 3,934 Sulfur Services Product sales 14,237 14,237 14,237 — — — 42,711 Service revenues 10,384 7,454 6,953 6,953 2,655 36,506 70,905 Total $ 74,227 $ 68,733 $ 69,644 $ 56,860 $ 54,059 $ 89,453 $ 412,976 The Partnership has non-cancelable revenue arrangements that are under the scope of ASC 842 whereby we have committed certain terminalling and storage assets in exchange for a minimum fee. Future minimum revenues the Partnership expects to receive under these non-cancelable arrangements as of December 31, 2025 are as follows: 2026 - $ 24,173 ; 2027 - $ 13,022 ; 2028 - $ 12,235 ; 2029 - $ 9,909 ; 2030 - $ 8,334 ; subsequent years - $ 253 . NOTE 6. INVENTORIES Components of inventories at December 31, 2025 and 2024 were as follows: 2025 2024 Natural Gas Liquids $ 1,125 $ 2,814 Sulfur 1,300 1,440 Fertilizer 21,666 18,463 Lubricants 20,281 23,227 Other 5,876 5,763 $ 50,248 $ 51,707 NOTE 7. PROPERTY, PLANT, AND EQUIPMENT At December 31, 2025 and 2024, property, plant and equipment consisted of the following: Depreciable Lives 2025 2024 Land — $ 18,812 $ 18,812 Improvements to land and buildings 10 - 25 years 142,035 136,609 Storage equipment 5 - 50 years 131,707 130,663 Marine vessels 4 - 25 years 201,831 194,406 Operating plant and equipment 3 - 50 years 421,088 396,631 Furniture, fixtures and other equipment 3 - 20 years 7,629 7,908 Transportation equipment 3 - 7 years 39,115 43,807 Construction in progress 8,536 25,223 $ 970,753 $ 954,059 Depreciation expense for the years ended December 31, 2025, 2024 and 2023 was $ 40,393 , $ 41,604 and $ 44,700 , respectively, which in cludes amortization of fixed assets acquired under finance lease obligations of $ 15 , $ 11 , and $ 6 . Gross assets under finance leases were $ 77 and $ 77 at December 31, 2025 and 2024, respectively. Accumulated amortization associated with finance leases was $ 26 and $ 10 at December 31, 2025 and 2024, respectively. Additions to property, plant and equipment included in accounts payable at December 31, 2025, 2024 and 2023 were $ 2,146 , $ 2,661 , and $ 2,943 , respectively. No equipment was purchased under finance lease obligations for the years ended December 31, 2025, 2024, and 2023. 83 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 8. GOODWILL The following table represents the goodwill balance by reporting unit at December 31, 2025 and 2024 as follows: 2025 2024 Carrying amount of goodwill: Terminalling and storage $ 6,756 $ 6,756 Specialty products 4,229 4,229 Sulfur services 5,197 5,197 Transportation 489 489 Total goodwill $ 16,671 $ 16,671 NOTE 9. LEASES The Partnership has numerous operating leases primarily for terminal facilities and transportation and other equipment. The leases generally provide that all expenses related to the equipment are to be paid by the lessee. Operating lease right of use ("ROU") assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Partnership's leases do not provide an implicit rate of return, the Partnership uses its imputed collateralized rate based on the information available at commencement date in determining the present value of lease payments. The estimated rate is based on a risk-free rate plus a risk-adjusted margin. The Partnership's leases have remaining lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. The Partnership includes extension periods and excludes termination periods from its lease term if, at commencement, it is reasonably likely that the Partnership will exercise the option. The components of lease expense for the years ended December 31, 2025, 2024, and 2023 were as follows: 2025 2024 2023 Operating lease cost $ 26,747 $ 22,256 $ 16,198 Finance lease cost: Amortization of right-of-use assets 15 11 6 Interest on lease liabilities 4 3 — Short-term lease cost 5,691 4,748 5,415 Variable lease cost 100 163 191 Total lease cost $ 32,557 $ 27,181 $ 21,810 84 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Supplemental cash flow information for the years ended December 31, 2025, 2024, and 2023 related to leases were as follows: 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 48,374 $ 39,763 $ 29,820 Operating cash flows from finance leases 4 3 — Financing cash flows from finance leases 14 9 9 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 23,402 $ 21,133 $ 38,935 Finance leases — 77 — Supplemental balance sheet information related to leases was as follows at December 31, 2025 and 2024: 2025 2024 Operating Leases Operating lease right-of-use assets $ 69,938 $ 67,140 Current portion of operating lease liabilities included in "Other accrued liabilities" $ 22,043 $ 19,707 Operating lease liabilities 48,353 47,815 Total operating lease liabilities $ 70,396 $ 67,522 Finance Leases Property, plant and equipment, at cost $ 77 $ 77 Accumulated depreciation ( 26 ) ( 10 ) Property, plant and equipment, net $ 51 $ 67 Current installments of finance lease obligations $ 15 $ 14 Finance lease obligations $ 39 $ 55 Total finance lease obligations $ 54 $ 69 Weighted Average Remaining Lease Term (years) Operating leases 3.79 4.07 Finance leases 3.32 4.32 Weighted Average Discount Rate Operating leases 7.56 % 7.28 % Finance leases 7.00 % 7.00 % 85 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) The Partnership’s future minimum lease obligations as of December 31, 2025 consist of the following: Operating Leases Finance Leases Year 1 $ 28,017 $ 18 Year 2 22,881 18 Year 3 15,882 18 Year 4 9,482 6 Year 5 4,743 — Thereafter 2,991 — Total 83,996 60 Less amounts representing interest costs ( 13,600 ) ( 6 ) Total lease liability $ 70,396 $ 54 NOTE 10. FAIR VALUE MEASUREMENTS The Partnership uses a valuation framework based upon inputs that market participants use in pricing certain assets and liabilities. These inputs are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources. Unobservable inputs represent the Partnership's own market assumptions. Unobservable inputs are used only if observable inputs are unavailable or not reasonably available without undue cost and effort. The two types of inputs are further prioritized into the following hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that reflect the entity's own assumptions and are not corroborated by market data. There were no assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 or 2024. The Partnership is required to disclose estimated fair values for its financial instruments. Fair value estimates are set forth below for these financial instruments. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: • Accounts and other receivables, trade and other accounts payable, accrued interest payable, other accrued liabilities, income taxes payable and due from/to affiliates: The carrying amounts approximate fair value due to the short maturity and highly liquid nature of these instruments, and as such these have been excluded from the table below. There is negligible credit risk associated with these instruments. • Current and non-current portion of long-term debt: The carrying amount of the credit facility approximates fair value due to the debt having a variable interest rate and is in Level 2. The estimated fair value of the 2028 Notes is considered Level 2, as the fair value is based upon quoted prices for identical liabilities in markets that are not active. December 31, 2025 December 31, 2024 Carrying Value Fair Value Carrying Value Fair Value 2028 Notes 390,795 415,726 386,377 436,172 Total $ 390,795 $ 415,726 $ 386,377 $ 436,172 NOTE 11. RELATED PARTY TRANSACTIONS As of December 31, 2025, Martin Resource Management Corporation owned 7,874,446 of the Partnership’s common units representing approximately 20.2 % of the Partnership’s outstanding limited partnership units. Martin Resource Management Corporation controls the Partnership's general partner by virtue of owning 100 % of the membership interests in 86 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Holdings, the sole member of the Partnership's general partner. The Partnership’s general partner, MMGP, owns a 2 % general partner interest in the Partnership. The Partnership’s general partner’s ability, as general partner, to manage and operate the Partnership, and Martin Resource Management Corporation’s ownership as of December 31, 2025 of approximately 20.2 % of the Partnership’s outstanding limited partnership units, effectively gives Martin Resource Management Corporation the ability to veto some of the Partnership’s actions and to control the Partnership’s management. The following is a description of the Partnership’s material related party agreements: Omnibus Agreement Omnibus Agreement . The Partnership and its general partner are parties to the Omnibus Agreement dated November 1, 2002, with Martin Resource Management Corporation that governs, among other things, potential competition and indemnification obligations among the parties to the agreement, related party transactions, the provision of general administration and support services by Martin Resource Management Corporation and the Partnership’s use of certain Martin Resource Management Corporation trade names and trademarks. The Omnibus Agreement was amended on November 25, 2009, to include processing crude oil into finished products including naphthenic lubricants, distillates, asphalt and other intermediate cuts. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation. The Omnibus Agreement was amended further on October 17, 2023 to include lubricants and packing in the Partnership’s definition of business. Non-Competition Provisions . Martin Resource Management Corporation has agreed for so long as it controls the general partner of the Partnership, not to engage in the business of: • providing terminalling and storage services for petroleum products and by-products including the refining, blending and packaging of finished lubricants; • providing land and marine transportation of petroleum products, by-products, and chemicals; and • manufacturing and selling sulfur-based fertilizer products and other sulfur-related products. This restriction does not apply to: • the ownership and/or operation on the Partnership’s behalf of any asset or group of assets owned by it or its affiliates; • any business operated by Martin Resource Management Corporation, including the following: ◦ distributing 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 and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas; ◦ providing crude oil marketing and transportation from the well head to the end market; ◦ operating an environmental consulting company; ◦ operating a butane optimization business; ◦ supplying employees and services for the operation of the Partnership's business; and ◦ operating, solely for our account, the asphalt facilities owned by the Partnership in each of Hondo, South Houston and Port Neches, Texas and Omaha, Nebraska. 87 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of less than $ 5,000 ; • any business that Martin Resource Management Corporation acquires or constructs that has a fair market value of $ 5,000 or more if the Partnership has been offered the opportunity to purchase the business for fair market value and the Partnership declines to do so with the concurrence of the Conflicts Committee; and • any business that Martin Resource Management Corporation acquires or constructs where a portion of such business includes a restricted business and the fair market value of the restricted business is $ 5,000 or more and represents less than 20 % of the aggregate value of the entire business to be acquired or constructed; provided that, following completion of the acquisition or construction, the Partnership will be provided the opportunity to purchase the restricted business. Services. Under the Omnibus Agreement, Martin Resource Management Corporation provides the Partnership with corporate staff, support services, and administrative services necessary to operate the Partnership’s business. The Omnibus Agreement requires the Partnership to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on the Partnership’s behalf or in connection with the operation of the Partnership’s business. There is no monetary limitation on the amount the Partnership is required to reimburse Martin Resource Management Corporation for direct expenses. In addition to the direct expenses, under the Omnibus Agreement, the Partnership is required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses. Effective January 1, 2024, through December 31, 2025, the Board of Directors approved an annual reimbursement amount for indirect expenses of $ 13,536 . The Partnership reimbursed Martin Resource Management Corporation for $ 13,536 , $ 13,508 and $ 13,982 of indirect expenses for the years ended December 31, 2025, 2024 and 2023, respectively. The Board of Directors will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually. These indirect expenses are intended to cover the centralized corporate functions Martin Resource Management Corporation provides to the Partnership, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions the Partnership shares with Martin Resource Management Corporation retained businesses. The provisions of the Omnibus Agreement regarding Martin Resource Management Corporation’s services will terminate if Martin Resource Management Corporation ceases to control the general partner of the Partnership. Related Party Transactions . The Omnibus Agreement prohibits the Partnership from entering into any material agreement with Martin Resource Management Corporation without the prior approval of the Conflicts Committee. For purposes of the Omnibus Agreement, the term "material agreements" means any agreement between the Partnership and Martin Resource Management Corporation that requires aggregate annual payments in excess of the then-applicable agreed upon reimbursable amount of indirect general and administrative expenses. Please read "Services" above. License Provisions. Under the Omnibus Agreement, Martin Resource Management Corporation has granted the Partnership a nontransferable, nonexclusive, royalty-free right and license to use certain of its trade names and marks, as well as the trade names and marks used by some of its affiliates. Amendment and Termination. The Omnibus Agreement may be amended by written agreement of the parties; provided, however, that it may not be amended without the approval of the Conflicts Committee if such amendment would adversely affect the unitholders. The Omnibus Agreement was first amended on November 25, 2009, to permit the Partnership to provide refining services to Martin Resource Management Corporation. The Omnibus Agreement was amended further on October 1, 2012, to permit the Partnership to provide certain lubricant packaging products and services to Martin Resource Management Corporation. The Omnibus Agreement was amended further on October 17, 2023 to include lubricants and packaging in the Partnership’s definition of business. Such amendments were approved by the Conflicts Committee. The Omnibus Agreement, other than the indemnification provisions and the provisions limiting the amount for which the Partnership will reimburse Martin Resource Management Corporation for general and administrative services performed on its behalf, will terminate if the Partnership is no longer an affiliate of Martin Resource Management Corporation. 88 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Master Transportation Services Agreement Master Transportation Services Agreement. MTI, a wholly owned subsidiary of the Partnership, is a party to a master transportation services agreement effective January 1, 2019, with certain wholly owned subsidiaries of Martin Resource Management Corporation. Under the agreement, MTI agreed to transport Martin Resource Management Corporation's petroleum products and by-products. Term and Pricing. The agreement will continue unless either party terminates the agreement by giving at least 30 days' written notice to the other party. The rates under the agreement are subject to any adjustments which are mutually agreed upon or in accordance with a price index. Additionally, shipping charges are also subject to fuel surcharges determined on a weekly basis in accordance with the U.S. Department of Energy’s national diesel price list. Indemnification. MTI has agreed to indemnify Martin Resource Management Corporation against all claims arising out of the negligence or willful misconduct of MTI and its officers, employees, agents, representatives and subcontractors. Martin Resource Management Corporation has agreed to indemnify MTI against all claims arising out of the negligence or willful misconduct of Martin Resource Management Corporation and its officers, employees, agents, representatives and subcontractors. In the event a claim is the result of the joint negligence or misconduct of MTI and Martin Resource Management Corporation, indemnification obligations will be shared in proportion to each party’s allocable share of such joint negligence or misconduct. Terminal Services Agreements Diesel Fuel Terminal Services Agreement. Effective October 1, 2022, The Partnership entered into a third amended and restated terminalling services agreement under which it provides terminal services to Martin Energy Services LLC (“MES”), a wholly owned subsidiary of Martin Resource Management Corporation, for fuel distribution utilizing marine shore-based terminals owned by the Partnership. This agreement amended the existing arrangement between the Partnership and MES by eliminating any minimum throughput volume requirements and increasing the per gallon throughput fee. The term of this agreement expired on December 31, 2023 but will continue on a year-to-year basis until terminated by either party by giving at least 90 days’ written notice prior to the end of any term. Effective January 1, 2024, this agreement was amended to increase the throughput rate and to establish a minimum throughput volume. Miscellaneous Terminal Services Agreements. The Partnership is currently party to several terminal services agreements and from time to time the Partnership may enter into other terminal service agreements for the purpose of providing terminal services to related parties. Individually, each of these agreements is immaterial but when considered in the aggregate they could be deemed material. These agreements are throughput based with a minimum volume commitment. Generally, the fees due under these agreements are adjusted annually based on a price index. Marine Agreements Marine Transportation Agreement . The Partnership is a party to a marine transportation agreement effective January 1, 2006, as amended, under which the Partnership provides marine transportation services to Martin Resource Management Corporation on a spot-contract basis at applicable market rates. Effective each January 1, this agreement automatically renews for consecutive one-year periods unless either party terminates the agreement by giving written notice to the other party at least 60 days prior to the expiration of the then applicable term. The fees the Partnership charges Martin Resource Management Corporation are based on applicable market rates. Marine Fuel. The Partnership is a party to an agreement with Martin Resource Management Corporation dated November 1, 2002, under which Martin Resource Management Corporation provides the Partnership with marine fuel from its locations in the Gulf of America at a fixed rate in excess of the Platt's U.S. Gulf Coast Index for #2 Fuel Oil. Under this agreement, the Partnership agreed to purchase all of its marine fuel requirements that occur in the areas serviced by Martin Resource Management Corporation. 89 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Other Agreements Cross Tolling Agreement. The Partnership is a party to an amended and restated tolling agreement with Cross Oil Refining and Marketing, Inc. ("Cross") dated October 28, 2014, under which the Partnership processes crude oil into finished products, including naphthenic lubricants, distillates, asphalt and other intermediate cuts for Cross. The tolling agreement expires November 25, 2031. Under this tolling agreement, Cross agreed to process a minimum of 6,500 barrels per day of crude oil at the facility at a fixed price per barrel. Any additional barrels are processed at a modified price per barrel. In addition, Cross agreed to pay a monthly reservation fee and a periodic fuel surcharge fee based on certain parameters specified in the tolling agreement. Further, certain capital improvements, to the extent requested by Cross, are reimbursed through a capital recovery fee. All of these fees (other than the fuel surcharge) are subject to escalation annually based upon an amount equal to two-thirds (2/3) times the change (increase or decrease) in the Consumer Price Index for a specified annual perio d . East Texas Mack Leases. MTI leases equipment, including tractors and trailers, from East Texas Mack Sales ("East Texas Mack"). Certain of our directors or officers are owners of East Texas Mack, including entities affiliated with Ruben Martin, who owns approximately 47.2 % of the issued and outstanding stock of East Texas Mack. Amounts paid to East Texas Mack for tractor and trailer lease payments and lease residuals for the fiscal years ended December 31, 2025, 2024 and 2023 were approximately $ 6,721 , $ 4,998 , and $ 3,256 , respectively. Storage and Services Agreement. The Partnership is a party to a storage and services agreement with Martin Butane, a division of Martin Product Sales LLC (a subsidiary of Martin Resource Management Corporation), dated May 1, 2023, under which the Partnership provides storage and other services for NGLs at the Partnership's underground storage facility located in Arcadia, Louisiana. The primary term of the agreement expired on April 30, 2024, but will continue on a year to year basis until terminated by either party by giving at least 90 days’ written notice prior to the end of any term. Other Miscellaneous Agreements. From time to time the Partnership enters into other miscellaneous agreements with Martin Resource Management Corporation for the provision of other services or the purchase of other goods. The tables below summarize the related party transactions that are included in the related financial statement captions on the face of the Partnership’s Consolidated Statements of Operations. The revenues, costs and expenses reflected in these tables are tabulations of the related party transactions that are recorded in the corresponding caption of the Consolidated Statements of Operations and do not reflect a statement of profits and losses for related party transactions. The impact of related party revenues from sales of products and services is reflected in the Consolidated Statements of Operations as follows: Revenues: 2025 2024 2023 Terminalling and storage $ 72,244 $ 71,799 $ 72,138 Transportation 30,428 33,250 29,276 Sulfur services — 664 — Product sales: Specialty products 578 352 8,547 Sulfur services 3,665 105 220 4,243 457 8,767 $ 106,915 $ 106,170 $ 110,181 The impact of related party cost of products sold is reflected in the Consolidated Statements of Operations as follows: Cost of products sold: Specialty products $ 28,626 $ 31,789 $ 35,930 Sulfur services 12,885 11,915 11,182 Terminalling and storage — 72 75 $ 41,511 $ 43,776 $ 47,187 90 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) The impact of related party operating expenses is reflected in the Consolidated Statements of Operations as follows: Operating expenses: Transportation $ 81,835 $ 79,441 $ 73,866 Sulfur services 5,609 4,888 5,738 Terminalling and storage 23,725 22,502 21,247 $ 111,169 $ 106,831 $ 100,851 The impact of related party selling, general and administrative expenses is reflected in the Consolidated Statements of Operations as follows: Selling, general and administrative: Transportation $ 8,533 $ 11,218 $ 8,927 Specialty products 4,240 5,454 4,152 Sulfur services 3,800 5,427 3,714 Terminalling and storage 1,100 3,051 780 Indirect overhead allocation, net of reimbursement 14,025 14,235 14,448 $ 31,698 $ 39,385 $ 32,021 NOTE 12. SUPPLEMENTAL BALANCE SHEET INFORMATION Components of "Intangibles and other assets, net" at December 31, 2025 and 2024 were as follows: 2025 2024 Catalyst and turnaround costs $ — $ 254 Other intangible assets 1 26 Other 1,450 1,229 $ 1,451 $ 1,509 Other intangible assets consist of technology-based assets. Amortization expense, included in "Depreciation and amortization" on the Partnership's Consolidated Statements of Operations includes amortization of intangible assets, turnaround expenses, and deferred charges. Aggregate amortization expense w as $ 9,682 , $ 9,050 , and $ 5,006 , for the years ended December 31, 2025, 2024 and 2023, respectively. Estimated amortization expense for the years subsequent to December 31, 2025 are as follows: 2026 - $ 8,127 ; 2027 - $ 32 ; 2028 - $ 32 ; 2029 - $ 32 ; 2030 - $ 8 ; subsequent years - $ 0 . 91 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Components of "Other accrued liabilities" at December 31, 2025 and 2024 were as follows: 2025 2024 Accrued interest $ 17,838 $ 17,899 Asset retirement obligations 283 — Property and other taxes payable 3,968 4,043 Accrued payroll 7,119 5,187 Operating lease liabilities 22,043 19,707 Other 28 44 $ 51,279 $ 46,880 The schedule below summarizes the changes in our asset retirement obligations: Year Ended December 31, 2025 2024 (In thousands) Beginning asset retirement obligations $ 5,313 $ 5,182 Revisions to existing liabilities 1 — — Accretion expense 121 131 Liabilities settled ( 117 ) — Ending asset retirement obligations 5,317 5,313 Current portion of asset retirement obligations 2 ( 283 ) — Long-term portion of asset retirement obligations 3 $ 5,034 $ 5,313 1 Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, discount rates, and the estimated remaining useful life of the assets. 2 The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated Balance Sheets. 3 The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated Balance Sheets. 92 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 13. LONG-TERM DEBT At December 31, 2025 and 2024, long-term debt consisted of the following: 2025 2024 $ 130,000 1 Credit facility at variable interest rate ( 7.66 % 1 weighted average at December 31, 2025), due November 2027 4 secured by substantially all of the Partnership’s assets, net of unamortized debt issuance costs of $ 1,787 and $ 2,242 , respectively 2 $ 37,213 $ 51,258 $ 400,000 Senior notes, 11.5 % interest, net of unamortized debt issuance costs of $ 4,205 and $ 6,223 , respectively, including unamortized discount of $ 5,000 and $ 7,400 , respectively, due February 2028, secured 2,3,4 390,795 386,377 Total 428,008 437,635 Less: current portion — — Total long-term debt, net of current portion $ 428,008 $ 437,635 1 The interest rate fluctuates based on Adjusted Term SOFR (set on the date of each advance) or the alternate base rate plus an applicable margin. The margin is set every three months. The applicable margin for revolving loans that are SOFR loans currently ranges from 2.75 % to 3.75 %, and the applicable margin for revolving loans that are alternate base rate loans currently ranges from 1.75 % to 2.75 %. The applicable margin for SOFR borrowings and alternate base rate borrowings at December 31, 2025 is 3.75 % and 2.75 %, respectively. The applicable margin for SOFR borrowings and alternate base rate borrowings effective February 23, 2026 is 3.50 % and 2.50 %, respectively. The credit facility contains various covenants that limit the Partnership’s ability to make distributions; make certain investments and acquisitions; enter into certain agreements; incur indebtedness; sell assets; and make certain amendments to the Partnership's omnibus agreement with Martin Resource Management Corporation (the "Omnibus Agreement"). 2 The Partnership was in compliance with all debt covenants as of December 31, 2025. On September 24, 2025, Martin Operating Partnership L.P. (the “Operating Partnership”), a wholly owned subsidiary of the Partnership, the Partnership and certain of the Partnership’s other subsidiaries entered into a the Second Amendment with Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto, which amends the Fourth Amended and Restated Credit Agreement, dated effective as of February 8, 2023 (as previously amended, the “Credit Agreement”). The Partnership entered into the Second Amendment to, among other things: • extend the maturity date of amounts outstanding and the lenders’ commitments under the Credit Agreement from February 8, 2027 to November 16, 2027; • decrease the amount available for the Partnership to borrow under the Credit Agreement on a revolving credit basis from $ 150,000 to $ 130,000 ; and • adjust the financial covenants as described in more detail below: ◦ require the Partnership to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of at least 1.75 to 1.00 for the fiscal quarter ended March 31, 2025 and each fiscal quarter thereafter; ◦ require the Partnership to maintain a maximum Total Leverage Ratio (as defined in the Credit Agreement) of not more than 4.50 to 1.00 for the fiscal quarters ended March 31, 2025 and June 30, 2025, and stepping up to 4.75 to 1.00 for the fiscal quarter ended September 30, 2025 and each fiscal quarter thereafter; and ◦ require the Partnership to maintain a maximum First Lien Leverage Ratio (as defined in the Credit Agreement) of not more than 1.25 to 1.00 for the fiscal quarter ended March 31, 2025 and each fiscal quarter thereafter. The Partnership paid cash interest, net of capitalized interest, in the amount of $ 52,312 , $ 53,449 , and $ 51,607 for the years ended December 31, 2025, 2024 and 2023, respectively. Capitalized interest was $ 137 , $ 1,153 , and $ 310 for the years ended December 31, 2025, 2024 and 2023, respectively. 93 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) As of December 31, 2025, the Partnership had irrevocable letters of credit outstanding totaling $ 645 . NOTE 14. PARTNERS' CAPITAL (DEFICIT) As of December 31, 2025, partners’ capital consisted of 39,055,086 common limited partner units, representing a 98 % partnership interest, and a 2 % general partner interest. Martin Resource Management Corporation, through subsidiaries, owned 7,874,446 of the Partnership's common limited partner units representing approximately 20.2 % of the Partnership's outstanding common limited partner units. MMGP, the Partnership's general partner, owns the 2 % general partner interest. The Partnership Agreement contains specific provisions for the allocation of net income and losses to each of the partners for purposes of maintaining their respective partner capital accounts. Impact on Partners' Capital (Deficit) Related to Transactions Between Entities Under Common Control Under ASC 805, assets and liabilities transferred between entities under common control are accounted for at the historical cost of those entities' ultimate parent, in a manner similar to a pooling of interests. Any difference in the amount paid by the transferee versus the historical cost of the assets transferred is recorded as an adjustment to equity (contribution or distribution) by the transferee. This is in contrast with a business combination between unrelated parties, where assets and liabilities are recorded at their fair values at the acquisition date, with any excess of amounts paid over the fair value representing goodwill. From time to time, the most recent being in 2019, the Partnership has entered into common control acquisitions from Martin Resource Management Corporation. The consideration transferred totaling $ 552,058 exceeds the historical cost of the net assets received. This excess of the purchase price over the historical cost of the net assets received has resulted in cumulative distributions of $ 289,019 reflected as reductions to Partners' capital (deficit). Distributions of Available Cash The Partnership distributes all of its available cash (as defined in the Partnership Agreement) within 45 days after the end of each quarter to unitholders of record and to the general partner. Available cash is generally defined as all cash and cash equivalents of the Partnership on hand at the end of each quarter less the amount of cash reserves its general partner determines in its reasonable discretion is necessary or appropriate to: (i) provide for the proper conduct of the Partnership’s business; (ii) comply with applicable law, any debt instruments or other agreements; or (iii) provide funds for distributions to unitholders and the general partner for any one or more of the next four quarters, plus all cash on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Net Income (Loss) per Unit The Partnership follows the provisions of the FASB ASC 260-10 related to earnings per share, which addresses the application of the two-class method in determining income per unit for master limited partnerships having multiple classes of securities that may participate in partnership distributions accounted for as equity distributions. Undistributed earnings are allocated to the general partner and limited partners utilizing the contractual terms of the Partnership Agreement. When current period distributions are in excess of earnings, the excess distributions for the period are to be allocated to the general partner and limited partners based on their respective sharing of losses specified in the Partnership Agreement. Additionally, as required under FASB ASC 260-10-45-61A, unvested share-based payments that entitle employees to receive non-forfeitable distributions are considered participating securities, as defined in FASB ASC 260-10-20, for earnings per unit calculations. For purposes of computing diluted net income per unit, the Partnership uses the more dilutive of the two-class and if-converted methods. Under the if-converted method, the weighted-average number of subordinated units outstanding for the period is added to the weighted-average number of common units outstanding for purposes of computing basic net income per unit and the resulting amount is compared to the diluted net income per unit computed using the two-class method. The following is a reconciliation of net income (loss) allocated to the general partner and limited partners for purposes of calculating net income (loss) attributable to limited partners per unit: 94 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Years Ended December 31, 2025 2024 2023 Net loss $ ( 14,745 ) $ ( 5,207 ) $ ( 4,549 ) Less general partner’s interest in net loss: Distributions payable on behalf of general partner interest 16 16 16 General partner interest in undistributed loss ( 311 ) ( 120 ) ( 107 ) Less loss allocable to unvested restricted units ( 61 ) ( 25 ) ( 14 ) Limited partners’ interest in net loss $ ( 14,389 ) $ ( 5,078 ) $ ( 4,444 ) The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented: Years Ended December 31, 2025 2024 2023 Basic weighted average limited partner units outstanding 38,890,039 38,831,355 38,771,657 Dilutive effect of restricted units issued — — — Total weighted average limited partner diluted units outstanding 38,890,039 38,831,355 38,771,657 All outstanding units were included in the computation of diluted earnings per unit and weighted based on the number of days such units were outstanding during the period presented. All common unit equivalents were antidilutive for the years ended December 31, 2025, 2024 and 2023 because the limited partners were allocated a net loss in these periods. 95 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 15. UNIT BASED AWARDS - LONG-TERM INCENTIVE PLANS The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated financial statements in accordance with certain provisions of ASC 718. Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated financial statements with respect to these plans are as follows: For the Year Ended December 31, 2025 2024 2023 Restricted unit awards Employees $ — $ — $ — Non-employee directors 186 187 163 Phantom unit Awards Employees 2,176 3,070 ( 177 ) Non-employee directors — — — Total unit-based compensation expense $ 2,362 $ 3,257 $ ( 14 ) Long-Term Incentive Plans The Partnership's general partner has long-term incentive plans for employees and directors of the general partner and its affiliates who perform services for the Partnership. 2021 Phantom Unit Plan On July 21, 2021, the Board of Directors and the Compensation Committee approved the Martin Midstream Partners L.P. 2021 Phantom Unit Plan (the “2021 Plan”), effective as of the same date. The 2021 Plan permits granting the awards of phantom units and phantom unit appreciation rights (collectively, "phantom unit awards") to any employee or non-employee director of the Partnership, including its executive officers. The awards may be time-based or performance-based and will be paid, if at all, in cash. The award of a phantom unit under the 2021 Plan entitles the participant to a cash payment equal to the value of the phantom unit on the vesting date or dates, which value is the fair market value of a common unit of the Partnership (a “Unit”) on such vesting date or dates. The award of a phantom unit appreciation right entitles the recipient to a cash payment equal to the difference between the value of a phantom unit on the vesting date or dates in excess of the value assigned by the Compensation Committee to the phantom unit as of the grant date. Phantom units and phantom unit appreciation rights granted to participants do not confer upon participants any right to a Unit. On July 21, 2021, the Compensation Committee approved forms of time-based award agreements for phantom units and phantom unit appreciation rights, both of which awards vest in full on the third anniversary of the grant date. The grant date value of a phantom unit under a phantom unit appreciation right award is equal to the average of the closing price for a Unit during the 20 trading days immediately preceding the grant date of the award. Generally, vesting of an award is subject to a participant remaining continuously employed with the Partnership through the vesting date. However, if prior to the vesting date (i) a participant is terminated without cause (as defined in the award agreement) or terminates employment after the participant has attained both the age of 65 and ten years of employment (“retirement-eligible”), a prorated portion of the award will vest and be paid in cash no later than the 30 th day following such termination date (subject to a six-month delay in payment for certain retirement-eligible participants) or (ii) there is a change in control of the Partnership (as defined in the 2021 Plan), the award will vest in full and be paid in cash no later than the 30 th day following the date of the change of control; provided, that the participant has been in continuous employment through the termination or change in control date, as applicable. On April 20, 2022, the Board of Directors and the Compensation Committee approved the First Amendment to the 2021 Plan, effective as of the same date, which amendment increased the total number of phantom units available for grant 96 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) under the 2021 Plan from 2,000,000 units to 5,000,000 units. On April 20, 2022, 365,000 phantom units and 1,097,500 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership. On July 19, 2023, 1,179,500 phantom units and 505,500 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership. 2025 Phantom Unit Plan On February 11, 2025, the Board of Directors and the Compensation Committee approved the Martin Midstream Partners L.P. 2025 Phantom Unit Plan (the “2025 Plan”) to supersede the 2021 Plan, effective as of the same date. The 2025 Plan contains substantially the same terms and conditions as the 2021 Plan. On February 11, 2025, 1,210,000 phantom units and 425,000 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership. On July 16, 2025, 1,275,000 phantom units and 420,000 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership. See “Item 11. Executive Compensation – Martin Midstream Partners L.P. Long-Term Incentive Plans – Phantom Unit Plan.” Phantom unit awards are recorded in operating expense and selling, general and administrative expense based on the fair value of the vested portion of the awards on the balance sheet date. The fair value of these awards is updated at each balance sheet date and changes in the fair value of the vested portions of the awards are recorded as increases or decreases to compensation expense within operating expense and selling, general and administrative expense in the Consolidated Statements of Operations. All of the Partnership's outstanding phantom unit awards at December 31, 2025 met the criteria to be treated under liability classification in accordance with ASC 718, given that these awards will settle in cash on the vesting date. Compensation expense for the phantom awards is based on the fair value of the units as of the balance sheet date as further discussed below, and such costs are recognized ratably over the service period of the awards. As the fair value of liability awards is required to be re-measured each period end, stock compensation expense amounts recognized in future periods for these awards will vary. The estimated future cash payments of these awards are presented as liabilities within "Trade and other accounts payable" and "Other long-term obligations" in the Consolidated Balance Sheets. At December 31, 2025, the total liability recognized in connection with outstanding phantom unit awards was $ 4,574 , of which $ 2,905 is recorded in "Trade and other accounts payable" and $ 1,669 is recorded in "Other long-term obligation"s on the Consolidated Balance Sheets. At December 31, 2024, the total liability recognized in connection with outstanding phantom unit awards was $ 3,480 , of which $ 1,073 is recorded in "Trade and other accounts payable" and $ 2,407 is recorded in "Other long-term obligations" on the Consolidated Balance Sheets. As of December 31, 2025, there was a total of $ 5,598 of unrecognized compensation costs related to non-vested phantom unit awards. These costs are expected to be recognized over a remaining life of 1.95 years. The fair value of the phantom unit awards was estimated using a Monte Carlo valuation model as of the balance sheet date. The Monte Carlo valuation model is based on random projections of stock price paths and must be repeated numerous times to achieve a probabilistic assessment. Expected volatility was calculated based on the historical volatility of the Partnership’s common units as well as a set of peer companies. Restricted Unit Plan On May 26, 2017, the unitholders of the Partnership approved the Martin Midstream Partners L.P. 2017 Restricted Unit Plan (the “2017 LTIP”). The 2017 LTIP currently permits the grant of awards covering an aggregate of 3,000,000 common units, all of which can be awarded in the form of restricted units. The 2017 LTIP is administered by the Compensation Committee. A restricted unit is a unit that is granted to grantees with certain vesting restrictions, which may be time-based and/or performance-based. Once these restrictions lapse, the grantee is entitled to full ownership of the unit without restrictions. The Compensation Committee may determine to make grants under the 2017 LTIP containing such terms as the Compensation Committee shall determine under the 2017 LTIP. With respect to time-based restricted units ("TBRUs"), the Compensation Committee will determine the time period over which restricted units granted to employees and directors will vest. The Compensation Committee may also award a percentage of restricted units with vesting requirements based upon the achievement of specified pre-established performance targets ("PBRUs"). The performance targets may include, but are not limited to, the following: revenue and income measures, cash flow measures, net income before interest expense and income tax expense ("EBIT"), net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), distribution coverage metrics, expense measures, liquidity measures, market measures, corporate sustainability metrics, and 97 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) other measures related to acquisitions, dispositions, operational objectives and succession planning objectives. PBRUs are earned only upon our achievement of an objective performance measure for the performance period. PBRUs which vest are payable in common units. Unvested units granted under the 2017 LTIP may or may not participate in cash distributions depending on the terms of each individual award agreement. The restricted units issued to directors generally vest in equal annual installments over a four-year period. In February 2025, the Partnership issued 18,000 TBRUs to each of the Partnership's three independent directors under the 2017 LTIP. These restricted common units vest in equal installments of 4,500 units on January 24, 2026, 2027, 2028, and 2029. The restricted units are valued at their fair value at the date of grant, which is equal to the market value of common units on such date. A summary of the restricted unit activity for the year ended December 31, 2025 is provided below: Number of Units Weighted Average Grant-Date Fair Value Per Unit Non-vested, beginning of year 168,864 $ 2.65 Granted (TBRU) 54,000 $ 3.62 Vested ( 60,126 ) $ 2.75 Forfeited — $ — Non-Vested, end of year 162,738 $ 2.93 Aggregate intrinsic value, end of year $ 425 A summary of the restricted units’ aggregate intrinsic value (market value at vesting date) and fair value of units vested (market value at date of grant) during the years ended December 31, 2025, 2024 and 2023 is provided below: For the Year Ended December 31, 2025 2024 2023 Aggregate intrinsic value of units vested $ 55 $ 46 $ 89 Fair value of units vested $ 165 $ 168 $ 178 As of December 31, 2025, there was $ 301 of unrecognized compensation cost related to non-vested time-based restricted units. That cost is expected to be recognized over a weighted-average period of 2.38 years. 98 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 16. INCOME TAXES The components of pretax income (loss) and income tax expense (benefit) from operations for the years ended December 31, 2025, 2024 and 2023 are as follows: 2025 2024 2023 Income (loss) from continuing operations before income tax expense (benefit) US $ ( 9,973 ) $ ( 1,010 ) $ 1,369 Total $ ( 9,973 ) -9973 $ ( 1,010 ) $ 1,369 Income tax expense (benefit) from continuing operations Current tax expense (benefit) US federal $ 2,174 $ 2,318 $ 904 US state and local 1,678 1,625 828 Total current tax expense (benefit) 3,852 3,943 1,732 Deferred tax expense (benefit) US federal 708 595 3,051 US state and local 212 ( 341 ) 1,135 Total deferred tax expense (benefit) 920 254 4,186 Total income tax expense (benefit) US federal 2,882 2,913 3,955 US state and local 1,890 1,284 1,963 Total income tax expense (benefit) $ 4,772 $ 4,197 $ 5,918 The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. The Texas margin tax is considered a state income tax and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as income tax, and therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $ 1,152 , $ 925 and $ 440 were recorded in income tax expense for the years ended December 31, 2025, 2024 and 2023, respectively. Total income tax expense relating to the operation of MTI, a wholly owned C-Corporation subsidiary of the Partnership (“Taxable Subsidiary”), of $ 3,620 , $ 3,272 and $ 5,478 was recorded in income tax expense for the years ended December 31, 2025, 2024 and 2023, respectively. The income tax expense from the Taxable Subsidiary operations for the years ended December 31, 2025, 2024, and 2023 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes of the Taxable Subsidiary) as follows: 99 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) 2025 2024 2023 Amount Percent Amount Percent Amount Percent US federal statutory income tax rate $ 2,175 21.00 % $ 2,669 21.00 % $ 3,880 21.00 % Domestic federal reconciling items Nontaxable and nondeductible items, net: • Insurance premiums paid to non-insurance company 875 8.45 % 265 2.08 % 280 1.52 % • Other 36 0.35 % 34 0.27 % 26 0.15 % Return to provision true-up ( 64 ) ( 0.62 ) % ( 45 ) ( 0.36 ) % 45 0.24 % Other domestic federal items 16 0.15 % 65 0.51 % 44 0.24 % Domestic state and local income taxes, net of federal effect** 582 5.62 % 284 2.23 % 1,203 6.52 % Effect of changes in tax laws or rates — — % — — % — — % Total $ 3,620 34.95 % $ 3,272 25.73 % $ 5,478 29.67 % **State taxes in Texas made up the majority (greater than 50 percent) of the tax effect in this category Income taxes paid (net of refunds received) for the years ended December 31, 2025, 2024 and 2023, are as follows: 2025 2024 2023 US federal $ 1,950 $ 2,340 $ 560 Domestic state and local Florida * 63 61 Louisiana * 56 64 Tennessee * * 59 Texas 1,349 766 510 Other 223 131 150 Subtotal 1,572 1,016 844 Total $ 3,522 $ 3,356 $ 1,404 *Jurisdiction is below the five percent disaggregation threshold for the period presented Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Significant components of deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows: 100 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) 2025 2024 Deferred tax assets: Bad debt reserves $ 95 $ 130 Goodwill and intangibles 8,186 9,216 Employee benefits 10 12 Operating leases 54 30 Interest expense 1,426 1,186 Tax loss carryforwards 40 118 Other 185 150 Subtotal 9,996 10,842 Less: Valuation allowance — — Total net deferred tax assets 9,996 10,842 Deferred tax liabilities: Property and equipment ( 970 ) ( 896 ) Operating leases — — Total deferred tax liabilities ( 970 ) ( 896 ) Net deferred tax assets $ 9,026 $ 9,946 Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. On the basis of these considerations, as of December 31, 2025, management believes it is more likely than not that the Taxable Subsidiary will realize the benefit of the existing deferred tax assets. Federal income taxes refundable related to the operation of the Taxable Subsidiary of $ 44 for the year ended December 31, 2024 are included in "Other current assets". "Income taxes payable" includes a state income tax liability related to the operation of the Partnership of $ 1,136 and $ 931 for the years ended December 31, 2025 and 2024, respectively. Also included in "Income taxes payable" is a federal income tax liability related to the operation of the Taxable Subsidiary of $ 182 for the year ended December 31, 2025 and state income tax liabilities related to the operation of the Taxable Subsidiary of $ 262 and $ 352 for the years ended December 31, 2025 and 2024, respectively. At December 31, 2025, MTI had net operating loss carryforwards for income tax purposes of approximately $ 859 related to state taxes. Of these net operating loss carryforwards, approximately $ 854 will expire between 2031 and 2041 and approximately $ 5 may be carried forward indefinitely. The federal net operating loss carryforwards were fully utilized in 2024. The operations of the Partnership are generally not subject to income taxes, except as discussed above, because its income is taxed directly to its partners. The net tax basis in the Partnership's assets and liabilities is greater (less) than the reported amounts on the financial statements by approximately $ 63,929 and $ 69,103 as of December 31, 2025 and 2024, respectively. On July 4, 2025, OBBBA was enacted, which legislation included numerous revisions to U.S. federal tax law. The OBBBA legislation does not have a material impact on the Partnership’s financials. As of December 31, 2025, the tax years that remain open to assessment are 2022, 2023 and 2024. NOTE 17. BUSINESS SEGMENTS The Chief Operating Decision Maker ("CODM") is a group of executives, comprised of the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of the Partnership's general partner. CODM may use different operating measures to assess operating results and allocate resources among the Partnership's four segments (outlined below), however 101 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) the measure that is most consistent with the amounts included in the consolidated financial statements is operating income. The CODM utilizes this measure to evaluate the current financial performance and project the future financial performance of each segment to determine the allocation of capital resources. The Partnership's four reportable segments are comprised of (1) Terminalling and Storage, (2) Transportation, (3) Sulfur Services and (4) Specialty Products. The operating segments within each of our reportable segments have been aggregated based on the similarity of their economic and other characteristics, including different product type and services. The Terminalling and Storage segment generates revenue by providing terminalling, processing, and storage services for petroleum products and by-products. Storage revenue is earned through contracted monthly tank fixed fees, while throughput revenue is based on the volume moved through the Partnership’s terminals at contracted rates. Tolling revenue is derived from contracted monthly reservation fees and throughput volumes processed at the facility. The Transportation segment earns revenue by offering land and marine transportation services for petroleum products, by-products, chemicals, and specialty products. Land transportation revenue is based on mileage rates for line hauls or completion of contracted trips. Marine transportation revenue comes from time charters, calculated on a per-day basis, or from the completion of contracted trips. The Sulfur Services segment generates revenue by providing processing, manufacturing, marketing, and distribution services for sulfur and sulfur-based products. Revenue from sulfur and fertilizer product sales is recognized when the customer takes title to the product. Revenue from sulfur services is earned as services are performed during each monthly period. The Specialty Products segment earns revenue by providing marketing, distribution, and transportation services for NGLs as well as blending and packaging services for specialty lubricants and greases. NGL revenue is recognized upon the sale of products via truck, rail, or pipeline. For lubricants and greases, revenue is recognized upon their sale by truck or rail. 102 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) The following tables present selected financial information with respect to the Partnership's operating segments for the years ended December 31, 2025, 2024 and 2023. Terminalling and Storage Transportation Sulfur Services Specialty Products Indirect selling, general and administrative Total Year Ended December 31, 2025: Operating revenues from external customers $ 90,831 $ 212,509 $ 164,079 $ 248,694 $ — $ 716,113 Intersegment operating revenues 7,456 16,500 — 109 — 24,065 Total segment revenues 98,287 229,009 164,079 248,803 — 740,178 Reconciliation of revenues: Elimination of intersegment revenues ( 7,456 ) ( 16,500 ) — ( 109 ) — ( 24,065 ) Total consolidated revenues 90,831 212,509 164,079 248,694 — 716,113 Less: cost of products sold: Direct product costs — — 87,008 207,556 — 294,564 Manufacturing costs (plant, labor, transportation, and other) — — 26,758 18,180 — 44,938 Segment gross margin 98,287 229,009 50,313 23,067 — 400,676 Less: Employment related expenses 2 26,696 60,987 8,636 5,787 12,274 114,380 Driver pay — 47,071 — — — 47,071 Pass-through expenses — 23,676 3,199 — — 26,875 Utilities, materials, and supplies 14,352 2,477 965 118 — 17,912 Repairs and maintenance 4,282 17,633 714 15 — 22,644 Insurance related expenses 4,803 17,167 729 168 116 22,983 Lease expenses 4,481 20,737 465 98 — 25,781 Other segment expenses 1 7,807 8,509 5,577 487 3,595 25,975 Depreciation and amortization 21,209 11,768 14,197 3,023 — 50,197 (Gain) loss on sale or disposition of property, plant and equipment 67 ( 2,057 ) ( 15 ) ( 34 ) — ( 2,039 ) 83,697 207,968 34,467 9,662 15,985 351,779 Operating income (loss) $ 14,590 $ 21,041 $ 15,846 $ 13,405 $ ( 15,985 ) $ 48,897 Segment assets $ 156,111 $ 165,129 $ 132,397 $ 68,781 $ — $ 522,418 Capital expenditures and plant turnaround costs $ 9,833 $ 8,693 $ 11,369 $ 1,726 $ — $ 31,621 1 Other segment expenses include outside services, property taxes, terminalling fees, regulatory expenses, professional fees, communications expenses, and many other less significant expense categories used in operations. 2 These employment expenses include allocated overhead from Martin Resource Management Corporation and exclude those that are part of our manufacturing operations. Payroll expenses in our manufacturing operations are included in cost of products sold. 103 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Terminalling and Storage Transportation Sulfur Services Specialty Products Indirect selling, general and administrative Total Year Ended December 31, 2024: Operating revenues from external customers $ 89,067 $ 223,934 $ 129,771 $ 264,850 $ — $ 707,622 Intersegment operating revenues 7,488 15,873 1 95 — 23,457 Total segment revenues 96,555 239,807 129,772 264,945 — 731,079 Reconciliation of revenues: Elimination of intersegment revenues ( 7,488 ) ( 15,873 ) ( 1 ) ( 95 ) — ( 23,457 ) Total consolidated revenues 89,067 223,934 129,771 264,850 — 707,622 — Less: cost of products sold: Direct product costs — — 58,102 217,866 — 275,968 Manufacturing costs (plant, labor, transportation, and other) 72 — 21,882 19,536 — 41,490 Segment gross margin 96,483 239,807 49,788 27,543 — 413,621 Less: Employment related expenses 2 25,714 60,882 9,148 5,941 12,267 113,952 Driver pay — 50,573 — — — 50,573 Pass-through expenses — 24,454 2,925 — — 27,379 Utilities, materials, and supplies 13,591 2,254 794 137 — 16,776 Repairs and maintenance 5,776 18,219 706 15 — 24,716 Insurance related expenses 6,914 15,083 730 125 825 23,677 Lease expenses 4,268 16,548 414 121 — 21,351 Other segment expenses 1 7,470 9,296 4,473 996 6,464 28,699 Depreciation and amortization 22,757 13,027 11,769 3,234 — 50,787 (Gain) loss on sale or disposition of property, plant and equipment ( 1,105 ) ( 713 ) 298 ( 64 ) — ( 1,584 ) 85,385 209,623 31,257 10,505 19,556 356,326 Operating income (loss) $ 11,098 $ 30,184 $ 18,531 $ 17,038 $ ( 19,556 ) $ 57,295 Segment assets $ 180,769 $ 165,093 $ 126,074 $ 66,573 $ — $ 538,509 Capital expenditures and plant turnaround costs $ 13,764 $ 9,188 $ 26,380 $ 3,291 $ — $ 52,623 1 Other segment expenses include outside services, property taxes, terminalling fees, regulatory expenses, professional fees, communications expenses, and many other less significant expense categories used in operations. The Unallocated SG&A amount includes $ 3,674 in transaction expenses associated with the terminated merger with Martin Resource Management Corporation. 2 These employment expenses include allocated overhead from Martin Resource Management Corporation and exclude those that are part of our manufacturing operations. Payroll expenses in our manufacturing operations are included in cost of products sold. 104 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) Terminalling and Storage Transportation Sulfur Services Specialty Products Indirect selling, general and administrative Total Year Ended December 31, 2023: Operating revenues from external customers $ 86,514 $ 223,677 $ 140,995 $ 346,777 $ — $ 797,963 Intersegment operating revenues 8,945 17,249 — 86 — 26,280 Total segment revenue 95,459 240,926 140,995 346,863 — 824,243 Reconciliation of revenues: Elimination of intersegment revenues ( 8,945 ) ( 17,249 ) — ( 86 ) — ( 26,280 ) Total consolidated revenues 86,514 223,677 140,995 346,777 — 797,963 — Less: cost of products sold: Direct product costs — — 75,002 294,005 — 369,007 Manufacturing costs (plant, labor, transportation, and other) 75 — 18,839 25,195 — 44,109 Segment gross margin 95,384 240,926 47,154 27,663 — 411,127 Less: Employment related expenses 2 23,018 56,244 7,997 5,463 12,755 105,477 Driver pay — 52,650 — — 52,650 Pass-through expenses — 27,196 3,657 — 30,853 Utilities, materials, and supplies 16,863 2,134 1,225 157 20,379 Repairs and maintenance 4,259 22,582 340 45 27,226 Insurance related expenses 4,525 14,056 759 122 19,462 Lease expenses 3,779 11,544 375 135 15,833 Other segment expenses 1 7,019 7,715 4,716 1,276 3,275 24,001 Depreciation and amortization 21,030 14,879 10,690 3,296 — 49,895 (Gain) loss on sale of property, plant and equipment 359 ( 1,775 ) ( 17 ) 60 — ( 1,373 ) 80,852 207,225 29,742 10,554 16,030 344,403 Operating income (loss) $ 14,532 $ 33,701 $ 17,412 $ 17,109 $ ( 16,030 ) $ 66,724 Segment assets $ 171,320 $ 161,506 $ 103,779 $ 72,770 $ — $ 509,375 Capital expenditures and plant turnaround costs $ 13,168 $ 7,598 $ 16,851 $ 2,519 $ — $ 40,136 1 Other segment expenses include outside services, property taxes, terminalling fees, regulatory expenses, professional fees, communications expenses, and many other less significant expense categories used in operations. 2 These employment expenses include allocated overhead from Martin Resource Management Corporation and exclude those that are part of our manufacturing operations. Payroll expenses in our manufacturing operations are included in cost of products sold. Revenues from one customer in the specialty products segment was $ 118,207 , $ 122,105 and $ 120,171 for the years ended December 31, 2025, 2024 and 2023, respectively. 105 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) NOTE 18. COMMITMENTS AND CONTINGENCIES Contingencies From time to time, the Partnership is subject to various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Partnership. On December 31, 2015, the Partnership received a demand from a customer in its lubricants packaging business for defense and indemnity in connection with various lawsuits filed against it, which generally alleged that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil (the “Marketing Lawsuits”). The Partnership disputed and continues to dispute that it has any obligation to defend or indemnify the customer for the customer’s conduct. Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee (the “Tennessee Court”), under Case No. 16-0018-BC, requesting a judicial determination that the Partnership did not owe the customer the demanded defense and indemnity obligations (the “Litigation”). The Marketing Lawsuits pending in federal court against the customer were transferred to the U.S. District Court for the Western District of Missouri under the consolidated case MDL No. 2709 for pretrial proceedings (the “Consolidated Lawsuits”). On March 1, 2017, at the joint request of the customer and the Partnership, the Tennessee Court administratively closed the Litigation. In 2021, the customer settled the Consolidated Lawsuits. On December 17, 2021, at the request of the customer, the Tennessee Court reopened the Litigation and the customer asserted various counterclaims against the Partnership seeking, among other things, to recover its costs of defending and settling the Consolidated Lawsuits. At this time, we are unable to determine what ultimate exposure we may have in this matter, if any. The Partnership intends to vigorously defend the counterclaims asserted by the customer in the Litigation. The trial for the Litigation is expected to be held in 2026. NOTE 19. INVESTMENT IN DSM SEMICHEM LLC On October 19, 2022, Martin ELSA Investment LLC, the Partnership's affiliate, entered into definitive agreements with Samsung C&T America, Inc. and Dongjin USA, Inc., an affiliate of Dongjin Semichem Co., Ltd., to form DSM Semichem LLC (“DSM”). DSM will produce and distribute electronic level sulfuric acid (“ELSA”). By leveraging the Partnership's existing assets located in Plainview, Texas and installing additional facilities (the “ELSA Facility”) as required, DSM will produce ELSA that meets the strict quality standards required by the recent advances in semiconductor manufacturing. In addition to owning a 10 % non-controlling interest in DSM, the Partnership will be the exclusive provider of feedstock to the ELSA Facility. The Partnership, through its affiliate MTI, will also provide land transportation services for the ELSA produced by DSM. On April 1, 2024, the Partnership contributed $ 6,500 in cash to DSM, which represents the cash contribution required pursuant to DSM's limited liability agreement for the Partnership's 10 % non-controlling interest. Also, in conjunction with the formation of DSM, we contributed approximately 22 acres of land. The Partnership recognizes its 10 % interest in DSM as "Investment in DSM Semichem LLC" on its Consolidated Balance Sheets. The Partnership accounts for its ownership interest in DSM under the equity method of accounting. Selected financial information for DSM is as follows: As of December 31, Year ended December 31, Total Assets Long-Term Debt Members' Equity/Partners' Capital Revenues Net Income (Loss) 2025 DSM Semichem LLC $ 113,007 $ 25,521 $ 57,598 $ — $( 10,916 ) 2024 DSM Semichem LLC $ 105,773 $ 31,700 $ 68,513 $ — $( 6,240 ) NOTE 20. CONDENSED CONSOLIDATING FINANCIAL INFORMATION 106 MARTIN MIDSTREAM PARTNERS L.P. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except where otherwise indicated) The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. The Operating Partnership, the Partnership’s wholly owned subsidiary, and the Partnership's other operating subsidiaries have issued in the past, and may issue in the future, unconditional guarantees of senior or subordinated debt securities of the Partnership. The guarantees that have been issued are full, irrevocable and unconditional and joint and several. In addition, the Operating Partnership may also issue senior or subordinated debt securities which, if issued, will be fully, irrevocably and unconditionally guaranteed by the Partnership. Substantially all of the Partnership's operating subsidiaries are subsidiary guarantors of its outstanding 2028 Notes and any subsidiaries other than the subsidiary guarantors are minor. NOTE 21. SUBSEQUENT EVENTS Quarterly Distribution. On January 22, 2026, the Partnership declared a quarterly cash distribution of $ 0.005 per common unit for the fourth quarter of 2025, or $ 0.02 per common unit on an annualized basis, which was paid on February 13, 2026 to unitholders of record as of February 6, 2026. 107 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None.