What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-27 compared with 2026-04-27 · 248 added, 101 removed, 329 unchanged (51% of the section changed)

14 unchanged sentences

Martin Resource Management Corporation is an important supplier and customer of ours.

As of March 31, 2026, Martin Resource Management Corporation owned 20.1% of our total outstanding common limited partner units and 100% of MMGP Holdings, LLC ("Holdings"), which is the sole member of Martin Midstream GP LLC ("MMGP"), our general partner.

As of June 30, 2026, Martin Resource Management Corporation owned 20.1% of our total outstanding common limited partner units and 100% of MMGP Holdings, LLC ("Holdings"), which is the sole member of Martin Midstream GP LLC ("MMGP"), our general partner.

MMGP owns a 2.0% general partner interest in us.

6 unchanged sentences

Significant Recent Developments

Amendment to Credit Facility .

On March 31, 2026, we entered into the Third Amendment with Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto, which amends the Credit Agreement.

The Third Amendment amended the Credit Agreement to, among other things:

• decrease the amount available for the Partnership to borrow under the Credit Agreement on a revolving credit basis from $130.0 million to $115.0 million;

• 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 1.65 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and

December 31, 2026 and stepping up to 1.75 to 1.00 for the fiscal quarter ending March 31, 2027 and each fiscal quarter thereafter;

◦ require the Operating Partnership to maintain a maximum Total Leverage Ratio (as defined in the Credit Agreement) of not more than 5.50 to 1.00 for the fiscal quarters ending March 31, 2026, June 30, 2026, September 30, 2026 and December 31, 2026, stepping down to 5.30 to 1.00 for the fiscal quarter ending March 31, 2027, stepping down to 5.25 to 1.00 for the fiscal quarter ending June 30, 2027, and further stepping down to 5.00 to 1.00 for the fiscal quarter ending September 30, 2027 and each fiscal quarter thereafter.

Subsequent Events

Quarterly Distribution.

On April 22, 2026, we declared a quarterly cash distribution of $0.005 per common unit for the first quarter of 2026, or $0.020 per common unit on an annualized basis, which will be paid on May 15, 2026 to unitholders of record as of May 8, 2026.

On July 22, 2026, we declared a quarterly cash distribution of $0.005 per common unit for the second quarter of 2026, or $0.020 per common unit on an annualized basis, which will be paid on August 14, 2026 to unitholders of record as of August 7, 2026.

Critical Accounting Policies and Estimates

27 unchanged sentences

The Omnibus Agreement requires us to reimburse Martin Resource Management Corporation for all direct expenses it incurs or payments it makes on our behalf or in connection with the operation of our business.

We reimbursed Martin Resource Management Corporation for $43.4 million of direct costs and expenses for the three months ended March 31, 2026, compared to $41.1 million for the three months ended March 31, 2025.

We reimbursed Martin Resource Management Corporation for $45.1 million of direct costs and expenses for the three months ended June 30, 2026, compared to $42.8 million for the three months ended June 30, 2025.

We reimbursed Martin Resource Management Corporation for $88.5 million of direct costs and expenses for the six months ended June 30, 2026, compared to $83.9 million for the six months ended June 30, 2025.

There is no monetary limitation on the amount we are required to reimburse Martin Resource Management Corporation for direct expenses.

In addition to the direct expenses, under the Omnibus Agreement, we are required to reimburse Martin Resource Management Corporat ion for indirect general and administrative and corporate overhead expenses.

In each of the three months ended March 31, 2026 and 2025, the Conflicts Committee approved reimbursement amounts of $3.2 million and $3.4 million.

For the three months ended June 30, 2026 and 2025, the Conflicts Committee approved reimbursement amounts of $3.2 million and $3.4 million, respectively.

For the six months ended June 30, 2026 and 2025, the Conflicts Committee approved reimbursement amounts of $6.5 million and $6.8 million, respectively.

The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.

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We have been and anticipate that we will continue to be both a significant customer and supplier of products and services offered by Martin Resource Management Corporation.

In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 26% and 25% of our total costs and expenses during the three months ended March 31, 2026 and 2025, respectively.

In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 24% and 28% of our total costs and expenses during the three months ended June 30, 2026 and 2025, respectively.

In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 25% and 26% of our total costs and expenses during the six months ended June 30, 2026 and 2025, respectively.

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

Our sales to Martin Resource Management Corporation accounted for approximately 15% and 14% of our total revenues for the three months ended March 31, 2026 and 2025, respectively.

Our sales to Martin Resource Management Corporation accounted for approximately 13% and 15% of our total revenues for the three months ended June 30, 2026 and 2025, respectively.

Our sales to Martin Resource Management Corporation accounted for approximately 14% and 14% of our total revenues for the six months ended June 30, 2026 and 2025, respectively.

For a more comprehensive discussion concerning the agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13.

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

If a matter is referred to the Conflicts Committee, the Conflicts Committee obtains information regarding the proposed transaction from management and determines whether to engage independent legal counsel or an independent financial advisor to advise the members of the committee regarding the transaction.

committee regarding the transaction.

If the Conflicts Committee retains such counsel or financial advisor, it considers such advice and, in the case of a financial advisor, such advisor’s opinion as to whether the transaction is fair and reasonable to us and to our unitholders.

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Adjusted EBITDA .

We define Adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments, and transaction costs associated with business combination, merger, and divestiture activities.

We define Adjusted EBITDA as EBITDA before unit-based compensation expenses, gains and losses on the disposition of property, plant and equipment, impairment and other similar non-cash adjustments, transaction costs associated with business combination, merger, and divestiture activities, equity in earnings (loss) from unconsolidated entities, and non-cash contractual revenue deferral adjustments.

Adjusted EBITDA is used as a supplemental performance and liquidity measure by our management and by external users of our financial statements, such as investors, commercial banks, research analysts, and others, to assess:

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To compensate for these limitations, we believe that it is important to consider Net Cash Provided by (Used in) Operating Activities determined under GAAP, as well as Distributable Cash Flow and Adjusted Free Cash Flow, to evaluate our overall liquidity.

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three months ended March 31, 2026 and 2025, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:

The following tables reconcile the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and six months ended June 30, 2026 and 2025, which represents EBITDA, Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow:

Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA

Three Months Ended March 31,

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands) (in thousands)

Net income (loss) $ 2,647 $ (2,407) $ (4,113) $ (3,440)

3 unchanged sentences

EBITDA 32,065 26,923 52,655 53,930

(Gain) loss on disposition or sale of property, plant and equipment (333) (479)

Transaction expenses related to the terminated merger with Martin Resource Management Corporation — 827

Equity in (earnings) loss of DSM Semichem LLC 301 209

Gain on disposition or sale of property, plant and equipment (4,653) (613) (4,986) (1,092)

Transaction expenses related to the unsuccessful merger with Martin Resource Management Corporation — — — 827

Equity in loss of DSM Semichem LLC 260 616 561 825

Non-cash contractual revenue adjustment 197 175 372 396

2 unchanged sentences

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA, Distributable Cash Flow, and Adjusted Free Cash Flow

Three Months Ended March 31,

(in thousands)

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands) (in thousands)

Net cash provided by (used in) operating activities $ 12,200 $ 30,915 $ (1,577) $ 24,896

2 unchanged sentences

Current income tax expense 1,479 2,024 1,855 3,355

Transaction expenses related to the terminated merger with Martin Resource Management Corporation — 827

Transaction expenses related to the unsuccessful merger with Martin Resource Management Corporation — — — 827

Non-cash contractual revenue adjustment 197 175 372 396

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Results of Operations

The results of operations for the three months ended March 31, 2026 and 2025, have been derived from our consolidated and condensed financial statements.

The results of operations for the three and six months ended June 30, 2026 and 2025, have been derived from our consolidated and condensed financial statements.

We evaluate segment performance on the basis of operating income, which is derived by subtracting cost of products sold, operating expenses, selling, general and administrative expenses, and depreciation and amortization expense from revenues.

The following table sets forth our operating revenues and operating income by segment for the three months ended March 31, 2026 and 2025.

The following table sets forth our operating revenues and operating income by segment for the three and six months ended June 30, 2026 and 2025.

The results of operations for these interim periods are not necessarily indicative of the results of operations which might be expected for the entire year.

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These items, including interest expense and indirect selling, general and administrative expenses, are discussed following the comparative discussion of our results within each segment.

Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025

Three Months Ended June 30, 2026 Compared to the Three Months Ended June 30, 2025

Operating Revenues Intersegment Revenues Eliminations Operating Revenues

1 unchanged sentence

Income (Loss)

Three Months Ended March 31, 2026 (In thousands)

Three Months Ended June 30, 2026 (In thousands)

Terminalling and storage $ 25,719 $ (1,976) $ 23,743 $ 8,806 $ (1,905) $ 6,901

8 unchanged sentences

Income (Loss)

Three Months Ended March 31, 2025 (In thousands)

Three Months Ended June 30, 2025 (In thousands)

Terminalling and storage $ 24,228 $ (1,824) $ 22,404 $ 3,000 $ (1,762) $ 1,238

5 unchanged sentences

Total $ 186,398 $ (5,722) $ 180,676 $ 14,883 $ — $ 14,883

Six Months Ended June 30, 2026 Compared to the Six Months Ended June 30, 2025

Operating Revenues Intersegment Revenues Eliminations Operating Revenues

after Eliminations Operating Income (Loss) Operating Income (Loss) Intersegment Eliminations Operating

Income (Loss)

Six Months Ended June 30, 2026 (In thousands)

Terminalling and storage $ 50,107 $ (3,927) $ 46,180 $ 11,009 $ (3,748) $ 7,261

Transportation 118,060 (8,614) 109,446 8,374 (8,557) (183)

Sulfur services 100,894 — 100,894 6,895 7,865 14,760

Specialty products 144,819 (65) 144,754 8,141 4,440 12,581

Indirect selling, general and administrative

— — — (7,142) — (7,142)

Total $ 413,880 $ (12,606) $ 401,274 $ 27,277 $ — $ 27,277

Operating Revenues Intersegment Revenues Eliminations Operating Revenues

after Eliminations Operating Income (Loss) Operating Income (Loss) Intersegment Eliminations Operating

Income (Loss)

Six Months Ended June 30, 2025 (In thousands)

Terminalling and storage $ 47,642 $ (3,689) $ 43,953 $ 5,110 $ (3,593) $ 1,517

Transportation 115,176 (8,365) 106,811 11,723 (8,426) 3,297

Sulfur services 92,832 — 92,832 13,685 7,605 21,290

Specialty products 129,669 (46) 129,623 7,379 4,414 11,793

Indirect selling, general and administrative

— — — (8,612) — (8,612)

Total $ 385,319 $ (12,100) $ 373,219 $ 29,285 $ — $ 29,285

Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31, Variance Percent Change

Comparative Results of Operations for the Three Months Ended June 30, 2026 and 2025

Three Months Ended June 30, Variance Percent Change

(In thousands, except BBL per day)

4 unchanged sentences

4,356 2,992 1,364 46 %

Gain (loss) on disposition or sale of property, plant and equipment 9 1 8 800 %

Operating income (loss) $ 2,203 $ 2,110 $ 93 4 %

Gain on disposition or sale of property, plant and equipment 4,450 8 4,442 55,525 %

Operating income $ 8,806 $ 3,000 $ 5,806 194 %

Shore-based throughput volumes (gallons) 33,908 47,199 (13,291) (28) %

1 unchanged sentence

Revenues increased $1.5 million.

Revenue at our Smackover refinery increased $0.8 million primarily as a result of increases in natural gas surcharge revenue of $0.6 million, throughput revenue of $0.1 million, and reservation fees of $0.1 million.

Revenue at our underground storage terminal increased $0.5 million primarily as a result of higher throughput fees of $0.6 million, offset by decreased reservation fees of $0.1 million.

Our shore-based terminals decreased $0.2 million due to decreased space rent of $0.3 million, offset by increased throughput revenue of $0.1 million.

Revenue at our specialty terminals decreased $0.1 million primarily as a result of decreased service revenue of $0.2 million, offset by an increase in throughput revenue of $0.1 million.

Revenue at our underground storage terminal increased $1.1 million primarily as a result of increased storage volume.

Revenue at our Smackover refinery increased $0.4 million primarily due to natural gas surcharge revenue.

Revenue at our specialty terminals increased $0.1 million, primarily as a result of increased throughput revenue of $0.2 million and storage revenue of $0.1 million, offset by a $0.2 million decrease in service revenue.

Our shore-based terminals decreased $0.1 million due to decreased space rent.

Operating expenses.

Operating expenses increased primarily as a result of higher rates for natural gas utilities of $0.4 million at our Smackover refinery.

Additionally, employee-related expenses increased $0.4 million and insurance premiums increased $0.2 million across all terminals as a result of higher rates.

Operating expenses increased primarily due to employee-related expenses of $0.5 million and repairs and maintenance of $0.2 million across all terminals.

Selling, general and administrative expenses.

Selling, general and administrative expenses increased slightly, primarily due to higher employee-related expenses.

Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.

Depreciation and amortization.

The decrease in depreciation and amortization is primarily the result of fully depreciated assets and disposals, offset by capital expenditures.

Gain on disposition or sale of property, plant and equipment.

The increase of $4.5 million is due to the gain recognized on the disposition of a non-core asset.

Comparative Results of Operations for the Six Months Ended June 30, 2026 and 2025

Six Months Ended June 30, Variance Percent Change

(In thousands, except BBL per day)

Revenues $ 50,107 $ 47,642 $ 2,465 5 %

Operating expenses 32,199 29,892 2,307 8 %

Selling, general and administrative expenses 1,279 1,669 (390) (23) %

Depreciation and amortization 10,079 10,980 (901) (8) %

6,550 5,101 1,449 28 %

Gain on disposition or sale of property, plant and equipment 4,459 9 4,450 49,444 %

Operating income $ 11,009 $ 5,110 $ 5,899 115 %

Shore-based throughput volumes (gallons) 68,355 85,690 (17,335) (20) %

Smackover refinery throughput volumes (guaranteed minimum) (BBL per day) 6,500 6,500 — — %

Revenues increased $2.5 million.

Revenue at our underground storage terminal increased $1.6 million primarily as a result of higher storage revenue of $1.1 million and increased throughput revenue of $0.6 million.

Revenue at our Smackover refinery increased $1.2 million primarily as a result of increases in natural gas surcharge revenue of $1.1 million and throughput revenue of $0.1 million.

Our shore-based terminals decreased $0.3 million due to decreased space rent.

Operating expenses.

Operating expenses increased primarily as a result of increases in employee-related expenses of $0.9 million, insurance premiums of $0.2 million and outside services of $0.2 million across all terminals.

Additionally at our Smackover refinery, natural gas utilities increased $0.5 million (rates) and other tax expenses increased $0.3 million (sales tax credit in 2025).

Selling, general and administrative expenses.

Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.

Depreciation and amortization.

The decrease in depreciation and amortization is primarily the result of assets being fully depreciated and disposals, offset by capital expenditures.

Gain on disposition or sale of property, plant and equipment.

The increase of $4.5 million is due to the gain recognized on the disposition of a non-core asset.

Transportation Segment

Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31, Variance Percent Change

Comparative Results of Operations for the Three Months Ended June 30, 2026 and 2025

Three Months Ended June 30, Variance Percent Change

(In thousands)

4 unchanged sentences

4,953 5,617 (664) (12) %

Gain (loss) on disposition or sale of property, plant and equipment 317 478 (161) (34) %

Operating income (loss) $ 3,237 $ 5,506 $ (2,269) (41) %

Revenues decreased $0.7 million.

In our marine transportation division, inland revenues increased $0.2 million, primarily related to an increase in utilization, offset by lower transportation rates.

Gain on disposition or sale of property, plant and equipment 184 600 (416) (69) %

Operating income $ 5,137 $ 6,217 $ (1,080) (17) %

Revenues increased $3.6 million.

In our land transportation division, ancillary revenue increased $4.2 million (primarily fuel).

Freight revenue decreased $0.1 million, primarily due to a 3% decrease in total miles.

In our marine transportation division, inland revenues increased $0.3 million, primarily related to an increase in transportation rates and utilization.

Offshore revenues decreased $1.0 million, primarily related to lower transportation rates and utilization associated with planned regulatory inspections.

Pass-through revenue (primarily fuel) increased $0.2 million.

Operating expenses .

The increase in operating expenses is primarily a result of pass-through expenses (primarily fuel) of $2.2 million, employee-related expenses of $1.1 million, lease expense of $0.9 million, and outside towing of $0.2 million.

The increase in lease expense is related to the replacement of tractors and trailers in our land transportation division.

Selling, general and administrative expenses .

Selling, general and administrative expenses decreased primarily due to a reduction in the allowance for uncollectible accounts receivable of $0.3 million and employee-related expenses of $0.1 million.

Depreciation and amortization.

The increase in depreciation and amortization is primarily the result of capital expenditures, offset by asset disposals.

Comparative Results of Operations for the Six Months Ended June 30, 2026 and 2025

Six Months Ended June 30, Variance Percent Change

(In thousands)

Revenues $ 118,060 $ 115,176 $ 2,884 3 %

Operating expenses 99,177 93,046 6,131 7 %

Selling, general and administrative expenses 4,910 5,637 (727) (13) %

Depreciation and amortization 6,100 5,848 252 4 %

7,873 10,645 (2,772) (26) %

Gain on disposition or sale of property, plant and equipment 501 1,078 (577) (54) %

Operating income $ 8,374 $ 11,723 $ (3,349) (29) %

Revenues increased $2.9 million.

In our land transportation division, ancillary revenue increased $4.4 million (primarily fuel).

Freight revenue decreased $0.4 million, primarily due to a 6% decrease in total miles.

In our marine transportation division, inland revenues increased $0.5 million, primarily related to an increase in transportation rates and utilization.

Offshore revenues decreased $1.8 million, primarily related to lower utilization associated with planned regulatory inspections combined with lower transportation rates.

The offshore unit is expected to return to service during the second quarter.

In our land transportation division, freight revenue decreased $0.2 million, primarily due to a 9% decrease in total miles, offset by a 14% increase in loads.

Pass-through revenue (primarily fuel) increased $0.1 million.

Operating expenses.

The increase in operating expenses is primarily a result of lease expense of $1.2 million, insurance premiums of $0.5 million, insurance claims of $0.2 million, repairs and maintenance of $0.1 million, and pass-through expenses of $0.1 million.

Offsetting these increases was a decrease in employee-related expenses of $0.6 million.

The increase in operating expenses is primarily a result of pass-through expenses (primarily fuel) of $2.3 million, lease expense of $2.1 million, employee-related expenses of $0.6 million, insurance premiums of $0.5 million, insurance claims of $0.3 million, repairs and maintenance of $0.2 million.

The increase in lease expense is related to the replacement of tractors and trailers in our land transportation division.

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Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31, Variance Percent Change

Comparative Results of Operations for the Three Months Ended June 30, 2026 and 2025

Three Months Ended June 30, Variance Percent Change

(In thousands)

7 unchanged sentences

4,349 5,968 (1,619) (27) %

Gain (loss) on disposition or sale of property, plant and equipment 6 — 6

Operating income (loss) $ 2,527 $ 7,716 $ (5,189) (67) %

Gain on disposition or sale of property, plant and equipment 19 1 18 1,800 %

Operating income $ 4,368 $ 5,969 $ (1,601) (27) %

Sulfur (long tons) 100 144 (44) (31) %

2 unchanged sentences

Services revenues.

Services revenues increased $0.1 million associated with reservation fee revenue from the DSM joint venture and $0.1 million as a result of a contractually prescribed, index-based fee adjustment.

Services revenues increased $0.2 million largely associated with a contractually prescribed, index-based fee adjustment.

Products revenues.

Products revenues increased $2.0 million.

Product revenues increased by $3.0 million due to a 7% rise in average sulfur products sales prices, which increase was offset by a decrease of $1.0 million related to a 2% decrease in sales volume, primarily a 10% decrease in fertilizer volumes.

Products revenues increased $5.8 million, reflecting a $21.7 million increase from a 54% rise in average sulfur products sales prices, offset by a $15.9 million decrease from a 26% reduction in sales volumes, comprising a 31% decrease in sulfur volumes and a 16% decrease in fertilizer volumes.

The fertilizer volume decline reflected reduced demand, as higher input costs (principally for sulfur and ammonia) raised fertilizer prices and pressured farmer affordability.

Cost of products sold.

Cost of products sold increased $8.0 million.

A 71% increase in product cost impacted cost of products sold by $20.9 million, resulting from increased commodity prices.

A 26% reduction in sales volumes resulted in a decrease in cost of products sold by $12.9 million.

Margin per ton increased $3.57, or 7%.

Operating expenses.

Operating expenses decreased due to a decrease of $0.3 million in marine pass-through expense, $0.2 million in marine operating expenses, $0.2 million in repairs and maintenance, and $0.1 million in outside services offset by a $0.1 million increase in employee-related expense.

Selling, general and administrative expenses.

Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.

Depreciation and amortization.

Depreciation and amortization increased due to the amortization of higher turnaround spend as well as certain assets being placed into service.

Comparative Results of Operations for the Six Months Ended June 30, 2026 and 2025

Six Months Ended June 30, Variance Percent Change

(In thousands)

Services $ 8,627 $ 8,296 $ 331 4 %

Products 92,267 84,536 7,731 9 %

Total revenues 100,894 92,832 8,062 9 %

Cost of products sold 76,710 61,313 15,397 25 %

Operating expenses 5,980 7,487 (1,507) (20) %

Selling, general and administrative expenses 3,087 3,235 (148) (5) %

Depreciation and amortization 8,247 7,113 1,134 16 %

6,870 13,684 (6,814) (50) %

Gain on disposition or sale of property, plant and equipment 25 1 24 2,400 %

Operating income $ 6,895 $ 13,685 $ (6,790) (50) %

Sulfur (long tons) 228 277 (49) (18) %

Fertilizer (long tons) 148 170 (22) (13) %

Total sulfur services volumes (long tons) 376 447 (71) (16) %

Services revenues.

Services revenues increased $0.3 million as a result of a contractually prescribed index-based fee adjustment of $0.2 million and $0.1 million associated with reservation fee revenue from the DSM joint venture.

Products revenues.

Products revenues increased $7.7 million, reflecting a $25.1 million increase from a 30% rise in average sulfur products sales prices, offset by a $17.4 million decrease from a 16% reduction in sales volumes, comprising an 18% decrease in sulfur volumes and a 13% decrease in fertilizer volumes.

The fertilizer volume decline reflected reduced demand, as higher input costs (principally for sulfur and ammonia) raised fertilizer prices and pressured farmer affordability.

Cost of products sold.

Cost of products sold increased $15.4 million.

A 49% increase in product cost impacted cost of products sold by $29.9 million, resulting from higher commodity prices.

A 16% reduction in sales volumes resulted in a decrease in cost of products sold of $14.5 million.

Margin per ton decreased by $24.11, or 43%, during the first quarter of 2026, primarily reflecting unfavorable performance in the fertilizer segment.

This decline was driven by higher input costs, principally sulfur and ammonia, as well as reduced farmer affordability, both of which adversely impacted fertilizer product demand.

Margin per ton decreased $10.58, or 20%.

Operating expenses.

1 unchanged sentence

Selling, general and administrative expenses.

Selling, general and administrative expenses increased primarily due to higher employee-related expenses.

Selling, general and administrative expenses decreased primarily due to lower employee-related expenses.

Depreciation and amortization.

1 unchanged sentence

Specialty Products Segment

Comparative Results of Operations for the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31, Variance Percent Change

Comparative Results of Operations for the Three Months Ended June 30, 2026 and 2025

Three Months Ended June 30, Variance Percent Change

(In thousands)

5 unchanged sentences

4,610 3,630 980 27 %

Gain (loss) on disposition or sale of property, plant and equipment 1 — 1

Operating income (loss) $ 3,531 $ 3,745 $ (214) (6) %

Gain on disposition or sale of property, plant and equipment — 4 (4) (100) %

Operating income $ 4,610 $ 3,634 $ 976 27 %

NGL sales volumes (Bbls) 605 572 33 6 %

2 unchanged sentences

Products Revenues.

Product revenues decreased by $7.7 million.

A 7% reduction in sales volumes decreased revenue by $4.8 million, primarily driven by an 11% decrease in NGL sales volumes.

Additionally, a 4% decline in average specialty product sales prices reduced revenue by $2.9 million.

Products revenues increased $22.9 million.

Our average sales price per barrel increased $25.56, resulting in a $16.9 million increase to revenue.

Sales volumes increased 8%, increasing revenues by $6.0 million, primarily related to a 20% increase in other specialty sales volumes.

Cost of products sold .

Cost of products sold decreased $7.8 million.

A 7% decrease in sales volumes resulted in a decrease in cost of products sold of $4.3 million.

A 6% decline in average product cost impacted cost of products sold by $3.5 million, resulting from reduced commodity prices.

Cost of products sold increased $21.9 million.

Our average cost per barrel increased $24.95, or 30%, increasing cost of products sold by $16.5 million.

The increase in sales volumes of 8% resulted in a $5.4 million increase to cost of products sold.

Our margins increased $0.60 per barrel, or 6%, during the period.

2 unchanged sentences

Selling, general and administrative expenses .

Selling, general and administrative decreased $0.1 million primarily due to lower employee-related expenses.

Depreciation and amortization.

Depreciation and amortization remained relatively consistent.

Comparative Results of Operations for the Six Months Ended June 30, 2026 and 2025

Six Months Ended June 30, Variance Percent Change

(In thousands)

Products revenues $ 144,819 $ 129,669 $ 15,150 12 %

Cost of products sold 131,321 117,211 14,110 12 %

Operating expenses — — —

Selling, general and administrative expenses 3,861 3,570 291 8 %

Depreciation and amortization 1,497 1,513 (16) (1) %

8,140 7,375 765 10 %

Gain on disposition or sale of property, plant and equipment 1 4 (3) (75) %

Operating income $ 8,141 $ 7,379 $ 762 10 %

NGL sales volumes (Bbls) 1,198 1,236 (38) (3) %

Other specialty products volumes (Bbls) 204 170 34 20 %

Total specialty products volumes (Bbls) 1,402 1,406 (4) — %

Products Revenues.

Product revenues increased by $15.2 million.

A 12% rise in average specialty product sales prices increased revenue by $15.6 million.

A minimal reduction in sales volumes decreased revenue by $0.4 million, primarily driven by a 3% decrease in NGL sales volumes.

Cost of products sold .

Cost of products sold increased $14.1 million.

A 12% rise in average product cost impacted cost of products sold by $14.5 million, resulting from increasing commodity prices.

A minimal decrease in sales volumes resulted in a decrease in cost of products sold of $0.4 million.

Our margins increased $0.77 per barrel, or 9%, during the period.

Selling, general and administrative expenses .

Selling, general and administrative expenses increased primarily due to employee-related expenses.

Depreciation and amortization.

Depreciation and amortization decreased as a result of capital expenditures offset by recent disposals.

Depreciation and amortization remained relatively consistent.

Interest Expense

Comparative Components of Interest Expense, Net for the Three Months Ended March 31, 2026 and 2025

Three Months Ended March 31, Variance Percent Change

Comparative Components of Interest Expense, Net for the Three Months Ended June 30, 2026 and 2025

Three Months Ended June 30, Variance Percent Change

(In thousands)

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Other 144 263 (119) (45) %

Finance leases 1 2 (1) (50) %

Capitalized interest (143) (45) (98) (218) %

Total interest expense, net $ 14,491 $ 14,608 $ (117) (1) %

Indirect Selling, General and Administrative Expenses

Three Months Ended March 31, Variance Percent Change

Comparative Components of Interest Expense, Net for the Six Months Ended June 30, 2026 and 2025

Six Months Ended June 30, Variance Percent Change

(In thousands)

Credit facility $ 2,865 $ 2,854 $ 11 — %

Senior notes 22,617 22,616 1 — %

Amortization of deferred debt issuance costs 1,671 1,556 115 7 %

Amortization of debt discount 1,200 1,200 — — %

Other 332 532 (200) (38) %

Finance leases 2 2 — — %

Capitalized interest (235) (45) (190) (422) %

Total interest expense, net $ 28,452 $ 28,715 $ (263) (1) %

Indirect Selling, General and Administrative Expenses

Indirect selling, general and administrative expenses decreased for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to the absence of $0.8 million in transaction expenses associated with the terminated merger with Martin Resource Management Corporation that were incurred in the first quarter of 2025, combined with lower compensation expense of $0.3 million.

Three Months Ended June 30, Variance Percent Change Six Months Ended June 30, Variance Percent Change

2026 2025 2026 2025

(In thousands) (In thousands)

Indirect selling, general and administrative expenses $ 3,663 $ 3,937 $ (274) (7) % $ 7,142 $ 8,612 $ (1,470) (17) %

Indirect selling, general and administrative expenses decreased $0.3 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to lower compensation expense of $0.1

million and reduced legal and tax fees of $0.1 million.

Indirect selling, general and administrative expenses decreased $1.5 million for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, primarily due to the absence of $0.8 million in transaction expenses associated with the unsuccessful merger with Martin Resource Management Corporation that were incurred in the first quarter of 2025, lower compensation expense of $0.4 million, lower professional fees of $0.2 million, and overhead allocated from Martin Resource Management of $0.1 million.

Martin Resource Management Corporation allocates to us a portion of its indirect selling, general and administrative expenses for services such as accounting, legal, treasury, clerical, billing, information technology, administration of insurance, engineering, general office expense and employee benefit plans and other general corporate overhead functions we share with Martin Resource Management Corporation retained businesses.

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Under the Omnibus Agreement, we are required to reimburse Martin Resource Management Corporation for indirect general and administrative and corporate overhead expenses.

The Conflicts Committee of our general partner approved the following reimbursement amounts during the three months ended March 31, 2026 and 2025:

Three Months Ended March 31, Variance Percent Change

(In thousands)

The Conflicts Committee of our general partner approved the following reimbursement amounts during the three and six months ended June 30, 2026 and 2025:

Three Months Ended June 30, Variance Percent Change Six Months Ended June 30, Variance Percent Change

2026 2025 2026 2025

(In thousands) (In thousands)

Conflicts Committee approved reimbursement amount

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Total Contractual Obligations

A summary of our total contractual cash obligations as of March 31, 2026, is as follows:

A summary of our total contractual cash obligations as of June 30, 2026, is as follows:

Payments due by period

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Letters of Credit .

At March 31, 2026, we had outstanding irrevocable letters of credit in the amount of $1.6 million, which were issued under our credit facility.

At June 30, 2026, we had outstanding irrevocable letters of credit in the amount of $1.6 million, which were issued under our credit facility.

Off-Balance Sheet Arrangements.

We do not have any off-balance sheet financing arrangements.

Cash Flows - Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

The following table details the cash flow changes between the three months ended March 31, 2026 and 2025:

Three Months Ended March 31, Variance Percent Change

Cash Flows - Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

The following table details the cash flow changes between the six months ended June 30, 2026 and 2025:

Six Months Ended June 30, Variance Percent Change

(In thousands)

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Net cash used in operating activities.

The increase in net cash used in operating activities for the three months ended March 31, 2026, includes a decrease in operating results and other non-cash charges of $4.9 million, coupled with an increase in cash outflows associated with changes in working capital of $2.8 million.

Net cash provided by (used in) operating activities decreased $26.5 million.

The increase in net cash used in operating activities for the six months ended June 30, 2026, includes a decrease in operating results and other non-cash charges of $3.6 million, coupled with an increase in cash outflows associated with changes in working capital of $22.9 million.

Net cash used in investing activities.

Net cash used in investing activities for the three months ended March 31, 2026, increased $8.7 million.

Net cash used in investing activities for the six months ended June 30, 2026, increased $9.0 million.

An increase in cash used of $13.4 million resulted from higher payments for capital expenditures and plant turnaround costs in 2026.

Additionally, net proceeds from the sale of property, plant and equipment decreased $0.1 million.

This was partially offset by an increase in net proceeds from the sale of property, plant and equipment of $4.4 million.

Net cash provided by financing activities.

Net cash provided by financing activities for the three months ended March 31, 2026, increased primarily as a result of an increase in borrowings of long-term debt of $26.5 million, offset by an increase in repayments of long-term debt of $10.0 million.

Net cash provided by financing activities for the six months ended June 30, 2026, increased primarily as a result of an increase in borrowings of long-term debt of $30.5 million, combined with a decrease in repayments of long-term debt of $5.0 million.

Description of Our Indebtedness

Credit Facility

At March 31, 2026, we maintained a $115.0 million credit facility that matures on November 16, 2027.

As of March 31, 2026, we had $68.0 million outstanding under the credit facility and $1.6 million of outstanding irrevocable letters of credit, leaving a maximum amount available to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $45.4 million.

After giving effect to our then current borrowings, letters of credit, and the financial covenants contained in our credit facility, we had the ability to borrow approximately $37.5 million in additional amounts thereunder as of March 31, 2026.

At June 30, 2026, we maintained a $115.0 million credit facility that matures on November 16, 2027.

As of June 30, 2026, we had $62.0 million outstanding under the credit facility and $1.6 million of outstanding irrevocable letters of credit, leaving a maximum amount available to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $51.4 million.

After giving effect to our then current borrowings, letters of credit, and the financial covenants contained in our credit facility, we had the ability to borrow approximately $48.3 million in additional amounts thereunder as of June 30, 2026.

The credit facility is used for ongoing working capital needs and general partnership purposes, and to finance permitted investments, acquisitions and capital expenditures.

The level of outstanding draws on our credit facility from January 1, 2026 through March 31, 2026 ranged from a low of $39.0 million to a high of $91.0 million.

The applicable margin for SOFR borrowings and alternate base rate borrowings at March 31, 2026 is 3.75% and 2.75%, respectively.

The applicable margin for SOFR borrowings and alternate base rate borrowings effective April 22, 2026, is 3.75% and 2.75%, respectively.

The level of outstanding draws on our credit facility from January 1, 2026 through June 30, 2026 ranged from a low of $39.0 million to a high of $91.0 million.

The applicable margin for SOFR borrowings and alternate base rate borrowings at June 30, 2026 is 3.75% and 2.75%, respectively.

The applicable margin for SOFR borrowings and alternate base rate borrowings effective July 22, 2026, is 3.75% and 2.75%, respectively.

Amendment to Credit Facility .

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Historically, we have generally satisfied our working capital requirements and funded our debt service obligations and capital expenditures with cash generated from operations and borrowings under our credit facility.

On March 31, 2026, we had cash and cash equivalents of $0.05 million and available borrowing capacity of $45.4 million under our credit facility with $68.0 million of borrowings outstanding.

On June 30, 2026, we had cash and cash equivalents of $0.05 million and available borrowing capacity of $51.4 million under our credit facility with $62.0 million of borrowings outstanding.

After giving effect to our then current borrowings, letters of credit, and the financial covenants contained in our credit facility, we had the ability to borrow approximately $48.3 million in additional amounts thereunder as of June 30, 2026.

We expect that our primary sources of liquidity to meet operating expenses, service our indebtedness, pay distributions to our unitholders and fund capital expenditures will be provided by cash flows generated by our operations, borrowings under our credit facility and access to the debt and equity capital markets.

3 unchanged sentences

In addition, due to the covenants in our credit facility, our financial and operating performance impacts the amount we are permitted to borrow under that facility.

We are in compliance with all debt covenants as of March 31, 2026, and expect to be in compliance for the next twelve months.

We are in compliance with all debt covenants as of June 30, 2026, and expect to be in compliance for the next twelve months.

Interest Rate Risk

6 unchanged sentences

Impact of Inflation

Inflation did not have a material impact on our results of operations for the three months ended March 31, 2026 or 2025.

Inflation did not have a material impact on our results of operations for the six months ended June 30, 2026 or 2025.

Inflation may increase the cost to acquire or replace property, plant and equipment.

13 unchanged sentences

The Partnership’s deductible under the applicable insurance policies total $0.5 million and such deductible expense has been recorded by the Partnership in the Consolidated and Condensed Statements of Operations.

As of April 27, 2026, no fines or penalties have been assessed in relation to the spill.

We incurred no material environmental costs, liabilities or expenditures to mitigate or eliminate environmental contamination during the three months ended March 31, 2026.

As of July 27, 2026, no fines or penalties have been assessed in relation to the spill.

We incurred no material environmental costs, liabilities or expenditures to mitigate or eliminate environmental contamination during the three months ended June 30, 2026.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis