10-Q

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the quarterly period ended September 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from ____________ to ____________

Commission File Number

000-50056

MARTIN MIDSTREAM PARTNERS L.P.

(Exact name of registrant as specified in its charter)

Delaware	05-0527861
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4200 Stone Road

Kilgore, Texas 75662

(Address of principal executive offices, zip code)

Registrant’s telephone number, including area code: (903) 983-6200

Securities registered pursuant to Section 12(b) of the Act

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units representing limited partnership interests	MMLP	The NASDAQ Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 

Yes ☐ No ☒

 The number of the registrant’s Common Units outstanding at October 25, 2021, was 38,802,750.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements included in this quarterly report that are not historical facts (including any statements concerning plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto), including, without limitation, the information set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations, are forward-looking statements. These statements can be identified by the use of forward-looking terminology including "forecast," "may," "believe," "will," "expect," "anticipate," "estimate," "continue," or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition or state other "forward-looking" information. We and our representatives may from time to time make other oral or written statements that are also forward-looking statements.

These forward-looking statements are made based upon management’s current plans, expectations, estimates, assumptions and beliefs concerning future events impacting us and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements.

Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by these forward-looking statements for a number of important reasons, including those discussed under "Item 1A. Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the "SEC") on March 3, 2021, and as may be updated and supplemented from time to time in our future Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

	Page
PART I – FINANCIAL INFORMATION	4
Item 1. Financial Statements	4
Consolidated and Condensed Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020 (audited)	4
Consolidated and Condensed Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)	5
Consolidated and Condensed Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2021 and 2020 (unaudited)	7
Consolidated and Condensed Statements of Capital (Deficit) for the Nine Months Ended September 30, 2021 and 2020 (unaudited)	8
Consolidated and Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 (unaudited)	9
Notes to Consolidated and Condensed Financial Statements (unaudited)	10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3. Quantitative and Qualitative Disclosures About Market Risk	57
Item 4. Controls and Procedures	58
PART II. OTHER INFORMATION	59
Item 1. Legal Proceedings	59
Item 1A. Risk Factors	59
Item 6. Exhibits	59

3

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED BALANCE SHEETS

(Dollars in thousands)

	September 30, 2021		December 31, 2020
	(Unaudited)		(Audited)
Assets
Cash	$	6,783	$	4,958
Accounts and other receivables, less allowance for doubtful accounts of $272 and $261, respectively	75,676		52,748
Inventories	98,139		54,122
Due from affiliates	10,133		14,807
Other current assets	10,441		8,991
Total current assets	201,172		135,626
Property, plant and equipment, at cost	894,767		889,108
Accumulated depreciation	(543,309)		(509,237)
Property, plant and equipment, net	351,458		379,871
Goodwill	16,823		16,823
Right-of-use assets	21,267		22,260
Deferred income taxes, net	20,834		22,253
Other assets, net	2,684		2,805
Total assets	$	614,238	$	579,638
Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations	$	240	$	31,497
Trade and other accounts payable	73,273		51,900
Product exchange payables	1,387		373
Due to affiliates	5,469		435
Income taxes payable	401		556
Fair value of derivatives	5,049		207
Other accrued liabilities	21,696		34,407
Total current liabilities	107,515		119,375
Long-term debt, net	547,090		484,597
Finance lease obligations	108		289
Operating lease liabilities	14,960		15,181
Other long-term obligations	8,721		7,067
Total liabilities	678,394		626,509
Commitments and contingencies
Partners’ capital (deficit)	(58,157)		(46,871)
Accumulated other comprehensive loss	(5,999)		—
Total partners’ capital (deficit)	(64,156)		(46,871)
Total liabilities and partners' capital (deficit)	$	614,238	$	579,638

See accompanying notes to consolidated and condensed financial statements.

4

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and units in thousands, except per unit amounts)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenues:
Terminalling and storage  *	$	18,980	$	20,706	$	56,060	$	61,088
Transportation  *	39,079		31,938		103,820		102,364
Sulfur services	2,950		2,915		8,849		8,744
Product sales: *
Natural gas liquids	91,764		52,350		257,081		164,860
Sulfur services	27,887		18,965		95,109		74,879
Terminalling and storage	30,598		25,659		75,606		80,119
	150,249		96,974		427,796		319,858
Total revenues	211,258		152,533		596,525		492,054
Costs and expenses:
Cost of products sold: (excluding depreciation and amortization)
Natural gas liquids *	85,137		44,908		225,862		139,036
Sulfur services *	20,266		13,313		65,657		46,167
Terminalling and storage *	24,167		19,124		58,895		64,242
	129,570		77,345		350,414		249,445
Expenses:
Operating expenses  *	50,098		43,105		142,045		138,589
Selling, general and administrative  *	9,739		10,339		29,308		30,659
Depreciation and amortization	13,945		15,276		42,862		45,858
Total costs and expenses	203,352		146,065		564,629		464,551
Other operating income (loss), net	61		23		(610)		2,548
Gain on involuntary conversion of property, plant and equipment	186		4,522		186		4,522
Operating income	8,153		11,013		31,472		34,573
Other income (expense):
Interest expense, net	(14,110)		(12,943)		(40,372)		(32,245)
Gain on retirement of senior unsecured notes	—		—		—		3,484
Loss on exchange of senior unsecured notes	—		(8,516)		—		(8,516)
Other, net	—		—		(1)		7
Total other expense	(14,110)		(21,459)		(40,373)		(37,270)
Net loss before taxes	(5,957)		(10,446)		(8,901)		(2,697)
Income tax expense	(954)		(373)		(2,111)		(1,510)
Net loss	(6,911)		(10,819)		(11,012)		(4,207)
Less general partner's interest in net loss	138		216		220		84
Less loss allocable to unvested restricted units	20		53		30		8
Limited partners' interest in net loss	$	(6,753)	$	(10,550)	$	(10,762)	$	(4,115)
Net loss per unit attributable to limited partners - basic	$	(0.17)	$	(0.27)	$	(0.28)	$	(0.11)
Net loss per unit attributable to limited partners - diluted	$	(0.17)	$	(0.27)	$	(0.28)	$	(0.11)
Weighted average limited partner units - basic	38,687,874		38,661,852		38,689,434		38,654,891
Weighted average limited partner units - diluted	38,687,874		38,661,852		38,689,434		38,654,891

See accompanying notes to consolidated and condensed financial statements.

*Related Party Transactions Shown Below

5

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars and units in thousands, except per unit amounts)

*Related Party Transactions Included Above

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenues:*
Terminalling and storage	$	15,866	$	15,902	$	46,741	$	47,718
Transportation	5,564		5,514		14,463		16,801
Product Sales	68		69		253		199
Costs and expenses:*
Cost of products sold: (excluding depreciation and amortization)
Sulfur services	2,441		2,512		7,379		7,833
Terminalling and storage	7,259		4,303		18,863		14,329
Expenses:
Operating expenses	20,088		18,915		58,046		60,126
Selling, general and administrative	7,659		8,356		23,624		24,723

See accompanying notes to consolidated and condensed financial statements.

6

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Dollars and units in thousands, except per unit amounts)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Net loss	$	(6,911)	$	(10,819)	$	(11,012)	$	(4,207)
Changes in fair values of commodity cash flow hedges	(5,999)		—		(5,999)		—
Comprehensive loss	$	(12,910)	$	(10,819)	$	(17,011)	$	(4,207)

See accompanying notes to consolidated and condensed financial statements.

7

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT)

(Unaudited)

(Dollars in thousands)

	Partners’ Capital (Deficit)
	Common Limited			General Partner Amount		Accumulated Other Comprehensive Income (Loss)
	Units	Amount						Total
Balances - January 1, 2020	38,863,389	$	(38,342)	$	2,146	$	—	$	(36,196)
Net loss	—	(4,123)		(84)		—		(4,207)
Issuance of restricted units	81,000	—		—		—		—
Forfeiture of restricted units	(84,134)	—		—		—		—
Cash distributions	—	(5,019)		(102)		—		(5,121)
Unit-based compensation	—	1,070		—		—		1,070
Purchase of treasury units	(7,748)	(9)		—		—		(9)
Balances - September 30, 2020	38,852,507	$	(46,423)	$	1,960	$	—	$	(44,463)
Balances - January 1, 2021	38,851,174	$	(48,776)	$	1,905	$	—	$	(46,871)
Net loss	—	(10,792)		(220)		—		(11,012)
Issuance of restricted units	42,168	—		—		—		—
Forfeiture of restricted units	(83,436)	—		—		—		—
Cash distributions	—	(581)		(12)		—		(593)
Unit-based compensation	—	336		—		—		336
Changes in fair values of commodity cash flow hedges	—	—		—		(5,999)		(5,999)
Purchase of treasury units	(7,156)	(17)		—		—		(17)
Balances - September 30, 2021	38,802,750	$	(59,830)	$	1,673	$	(5,999)	$	(64,156)

See accompanying notes to consolidated and condensed financial statements.

8

MARTIN MIDSTREAM PARTNERS L.P.

CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Nine Months Ended
	September 30,
	2021		2020
Cash flows from operating activities:
Net loss	$	(11,012)	$	(4,207)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	42,862		45,858
Amortization of deferred debt issuance costs	2,585		2,674
Amortization of premium on notes payable	—		(191)
Deferred income tax expense	1,419		1,202
Loss on sale of property, plant and equipment, net	610		153
Gain on involuntary conversion of property, plant and equipment	(186)		(4,522)
Non-cash impact related to exchange of senior unsecured notes	—		(749)
Gain on retirement of senior unsecured notes	—		(3,484)
Derivative (income) loss	1,825		(815)
Net cash received (paid) for commodity derivatives	(2,982)		539
Non cash unit-based compensation	336		1,070
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	(22,924)		30,012
Product exchange receivables	—		(212)
Inventories	(44,353)		(15,184)
Due from affiliates	4,674		(1,103)
Other current assets	(1,912)		(6,130)
Trade and other accounts payable	21,092		(17,117)
Product exchange payables	1,014		(1,278)
Due to affiliates	5,034		(1,003)
Income taxes payable	(155)		(137)
Other accrued liabilities	(10,536)		(5,534)
Change in other non-current assets and liabilities	203		(692)
Net cash provided by (used in) operating activities	(12,406)		19,150
Cash flows from investing activities:
Payments for property, plant and equipment	(11,449)		(23,705)
Payments for plant turnaround costs	(2,679)		(637)
Proceeds from involuntary conversion of property, plant and equipment	274		7,203
Proceeds from sale of property, plant and equipment	225		4,392
Net cash used in investing activities	(13,629)		(12,747)
Cash flows from financing activities:
Payments of long-term debt	(211,790)		(253,637)
Payments under finance lease obligations	(2,648)		(4,021)
Proceeds from long-term debt	243,500		259,019
Purchase of treasury units	(17)		(9)
Payment of debt issuance costs	(592)		(3,628)
Cash distributions paid	(593)		(5,121)
Net cash provided by (used in) financing activities	27,860		(7,397)
Net increase (decrease) in cash	1,825		(994)
Cash at beginning of period	4,958		2,856
Cash at end of period	$	6,783	$	1,862
Non-cash additions to property, plant and equipment	$	749	$	1,432

See accompanying notes to consolidated and condensed financial statements.

9

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 1. NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States ("U.S.") Gulf Coast region. Its four primary business lines include:   (1) terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution, and transportation services.

The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. 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 financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

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 and condensed financial statements in conformity with U.S. GAAP.  Actual results could differ from those estimates.

NOTE 2. NEW ACCOUNTING PRONOUNCEMENTS

On January 1, 2021, the Partnership adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2019-12, Income Taxes (Accounting Standards Codification ("ASC") Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to general principles in ASC 740 and clarifies and amends existing guidance within U.S. GAAP. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements.

10

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 3. REVENUE

    The following table disaggregates our revenue by major source:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Terminalling and storage segment
Lubricant product sales	$	30,598	$	25,659	$	75,606	$	80,119
Throughput and storage	18,980		20,706		56,060		61,088
	$	49,578	$	46,365	$	131,666	$	141,207
Natural gas liquids segment
Natural gas liquids product sales	$	91,764	$	52,350	$	257,081	$	164,860
	$	91,764	$	52,350	$	257,081	$	164,860
Sulfur services segment
Sulfur product sales	$	7,768	$	6,161	$	22,222	$	19,010
Fertilizer product sales	20,119		12,804		72,887		55,869
Sulfur services	2,950		2,915		8,849		8,744
	$	30,837	$	21,880	$	103,958	$	83,623
Transportation segment
Land transportation	$	30,273	$	21,879	$	80,715	$	65,986
Inland transportation	7,465		9,294		20,822		33,611
Offshore transportation	1,341		765		2,283		2,767
	$	39,079	$	31,938	$	103,820	$	102,364

    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.

    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 the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility.  When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. 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.

Natural Gas Liquids Segment

    Natural Gas Liquids ("NGL") revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product is invoiced as the transaction occurs and is generally paid within a month.

11

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

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.

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.

    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.

	2021		2022		2023		2024		2025		Thereafter		Total
Terminalling and storage
Throughput and storage	$	9,843	$	40,394	$	41,605	$	42,910	$	44,197	$	294,205	$	473,154
Natural Gas Services
Natural Gas Liquids	1,644		6,048		5,391		5,405		5,391		3,131		27,010
Sulfur services
Sulfur product sales	4,291		17,165		16,415		2,156		2,156		1,477		43,660
Total	$	15,778	$	63,607	$	63,411	$	50,471	$	51,744	$	298,813	$	543,824

NOTE 4. INVENTORIES

Components of inventories at September 30, 2021 and December 31, 2020 were as follows: 

	September 30, 2021		December 31, 2020
Natural gas liquids	$	65,136	$	27,878
Sulfur	49		24
Fertilizer	8,799		10,854
Lubricants	19,670		11,002
Other	4,485		4,364
	$	98,139	$	54,122

12

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 5. DEBT

At September 30, 2021 and December 31, 2020, long-term debt consisted of the following:

	September 30, 2021		December 31, 2020
$275,000 Revolving credit facility at variable interest rate (5.00%1 weighted average at September 30, 2021), due August 2023 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $3,004 and $3,826, respectively 2	$	205,496	$	144,174
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $— and $—, respectively, including unamortized premium of $— and $—, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, $335,666 refinanced as part of the August 2020 Exchange offer, $28,790 repaid at maturity in February 2021, unsecured 2,3,4	—		28,790
$53,750 Senior notes due February 2024, 10.0% interest, net of unamortized debt issuance costs of $2,719 and $3,577, respectively, secured 2,3	51,031		50,173
$291,970 Senior notes due February 2025, 11.5% interest, net of unamortized debt issuance costs of $1,407 and $1,720, respectively, secured 2,3	290,563		290,250
Total	547,090		513,387
Less: current portion	—		(28,790)
Total long-term debt, net of current portion	$	547,090	$	484,597
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	108		289
Total finance lease obligations	$	348	$	2,996

    1 Interest rate fluctuates based on LIBOR (set on the date of each advance) or the base prime rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2020 and September 30, 2021 were at LIBOR plus an applicable margin with LIBOR having a floor of 1.00% per annum. The applicable margin for revolving loans that are LIBOR loans currently ranges from 2.75% to 4.00%, and the applicable margin for revolving loans that are base prime rate loans currently ranges from 1.75% to 3.00%.  The applicable margin for LIBOR borrowings at September 30, 2021 is 4.00%. 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"). The credit facility was amended on July 16, 2021 to, among other things, reduce the commitments thereunder from $300,000 to $275,000.

    2 The Partnership was in compliance with all debt covenants as of September 30, 2021 and December 31, 2020, respectively.

    3 The indentures for each of the outstanding series of senior notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

4 On February 15, 2021, the 2021 Notes matured and the Partnership retired the outstanding balance of $28,790 using funds borrowed under its revolving credit facility.

    The Partnership paid cash interest, net of capitalized interest, in the amount of $22,635 and $15,698 for the three months ended September 30, 2021 and 2020, respectively. The Partnership paid cash interest, net of capitalized interest, in the amount of $48,630 and $34,811 for the nine months ended September 30, 2021 and 2020, respectively.  Capitalized interest was $0 and $16 for the three months ended September 30, 2021 and 2020, respectively. Capitalized interest was $0 and $26 for the nine months ended September 30, 2021 and 2020, respectively.

13

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 6. 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 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.

Our leases have remaining lease terms of 1 year to 15 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 three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	2,485	$	2,572	$	6,987	$	8,182
Finance lease cost:
Amortization of right-of-use assets	$	25	390		$	140	1,505
Interest on lease liabilities	$	5	62		$	21	258
Short-term lease cost	$	2,324	3,138		$	7,905	10,054
Variable lease cost	$	28	$	33	$	87	$	83
Total lease cost	$	4,867	$	6,195	$	15,140	$	20,082

Supplemental balance sheet information related to leases at September 30, 2021 and December 31, 2020 was as follows:

	September 30, 2021		December 31, 2020
Operating Leases
Operating lease right-of-use assets	$	21,267	$	22,260
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	6,746	$	7,529
Operating lease liabilities	$	14,960	15,181
Total operating lease liabilities	$	21,706	$	22,710
Finance Leases
Property, plant and equipment, at cost	$	1,071	$	10,352
Accumulated depreciation	$	(339)	(3,703)
Property, plant and equipment, net	$	732	$	6,649
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	$	108	289
Total finance lease obligations	$	348	$	2,996

14

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

    The Partnership’s future minimum lease obligations as of September 30, 2021 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	7,801	$	252
Year 2	5,102		109
Year 3	2,923		—
Year 4	2,220		—
Year 5	1,494		—
Thereafter	7,120		—
Total	$	26,660	$	361
Less amounts representing interest costs	(4,954)		(13)
Total lease liability	$	21,706	$	348

    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 September 30, 2021 are as follows: 2021 - $6,139; 2022 - $14,924; 2023 - $14,364; 2024 - $14,364; 2025 - $13,798; subsequent years - $38,539.

15

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 7. SUPPLEMENTAL BALANCE SHEET INFORMATION

    Components of "Other accrued liabilities" were as follows:

	September 30, 2021		December 31, 2020
Accrued interest	$	5,261	$	16,104
Asset retirement obligations	300		1,692
Property and other taxes payable	4,546		4,869
Accrued payroll	4,425		3,244
Operating lease liabilities	6,746		7,529
Other	418		969
	$	21,696	$	34,407

The schedule below summarizes the changes in our asset retirement obligations:

	September 30, 2021
Beginning asset retirement obligations	$	8,759
Additions to asset retirement obligations	—
Accretion expense	284
Liabilities settled	(22)
Ending asset retirement obligations	9,021
Current portion of asset retirement obligations1	(300)
Long-term portion of asset retirement obligations2	$	8,721

1The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets.

2The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets.

16

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 8. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Partnership’s results of operations could be materially impacted by changes in commodity prices and interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. At the time derivative contracts are entered into, the Partnership assesses whether the nature of the instrument qualifies for hedge accounting treatment according to the requirements of ASC 815 – Derivatives and Hedging. For those transactions designated as hedging instruments for accounting purposes, the Partnership documents all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. The Partnership also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows or fair value of hedged items. All derivatives and hedging instruments are included on the balance sheet as an asset or a liability measured at fair value. Changes in fair value for hedging instruments are recognized on the balance sheet through Accumulated Other Comprehensive Income ("AOCI"). Settlements related to effective hedging relationships will be reclassified from AOCI to earnings during the term at which the hedged transactions are reflected on the income statement.

From time to time, derivatives designated for hedge accounting may be closed prior to contract expiration. The accounting treatment of closed positions depends on whether the closure occurred due to the hedged transaction occurring early or if the hedged transaction is still expected to occur as originally forecasted. For hedged transactions that occur early, the closure results in the realized gain or loss from closure being recognized in the same period the accelerated hedged transaction affects earnings. For hedged transactions that are still expected to occur as originally forecasted, the closure results in the realized gain or loss being deferred until the hedged transaction affects earnings.

If it is determined that hedged transactions associated with cash flow hedges are no longer probable of occurring, the gain or loss associated with the instrument is recognized immediately into earnings.

From time to time, we may have derivative financial instruments for which we do not elect hedge accounting. Changes in fair value for derivatives not designated as hedges are recognized as gains and losses in the earnings of the periods in which they occur.

(a)    Commodity Derivative Instruments

    The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price.  The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure.  In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of September 30, 2021, to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. At September 30, 2021, the Partnership had instruments totaling a gross notional quantity of 400,000 barrels settling during the period from October 31, 2021 through December 31, 2021. At December 31, 2020, the Partnership had instruments totaling a gross notional quantity of 137,000 barrels settling during the period from January 31, 2021 through February 28, 2021. These instruments settle against the applicable pricing source for each grade and location.

    For information regarding gains and losses on commodity derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below.

(b)    Tabular Presentation of Gains and Losses on Derivative Instruments

    The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:

17

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

	Derivative Assets					Derivative Liabilities
		Fair Values					Fair Values
	Balance Sheet Location	September 30, 2021		December 31, 2020		Balance Sheet Location	September 30, 2021		December 31, 2020
Derivatives designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	—	$	—	Fair value of derivatives	$	5,049	$	—
Derivatives not designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	—	$	—	Fair value of derivatives	$	—	$	207

The following table summarizes the loss recognized in AOCI at September 30, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the three months ended September 30, 2021 for derivative financial instruments designated as cash flow hedges:

	Amount of Gain (Loss) Recognized in AOCI				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	2021		2020			2021		2020
Commodity contracts	$	(5,999)	$	—	Cost of products sold	$	—	$	—
Total	$	(5,999)	$	—		$	—	$	—

The following table summarizes the loss recognized in AOCI at September 30, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the nine months ended September 30, 2021 for derivative financial instruments designated as cash flow hedges:

	Amount of Gain (Loss) Recognized in AOCI				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	2021		2020			2021		2020
Commodity contracts	$	(5,999)	$	—	Cost of products sold	$	—	$	—
Total	$	(5,999)	$	—		$	—	$	—

18

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended September 30, 2021:

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2021		2020
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	(941)	$	(134)
Total effect of derivatives not designated as hedging instruments		$	(941)	$	(134)

The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the nine months ended September 30, 2021:

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2021		2020
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	(1,825)	$	(263)
Total effect of derivatives not designated as hedging instruments		$	(1,825)	$	(263)

NOTE 9. PARTNERS' CAPITAL

As of September 30, 2021, Partners’ capital consisted of 38,802,750 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owns 6,114,532 of the Partnership's common limited partner units representing approximately 15.8% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management Corporation controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of the Partnership's general partner.

The partnership agreement of the Partnership (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 $550,773 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 $287,734 reflected as reductions to Partners' capital.

19

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

Incentive Distribution Rights

MMGP holds a 2% general partner interest and certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement.

The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit.

The general partner was allocated no incentive distributions during the nine months ended September 30, 2021 and 2020.

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 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. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. 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 income and 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 allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:

20

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net loss	$	(6,911)	$	(10,819)	$	(11,012)	$	(4,207)
Less general partner’s interest in net loss:
Distributions payable on behalf of general partner interest	4		4		12		57
General partner interest in undistributed loss	(142)		(220)		(232)		(141)
Less loss allocable to unvested restricted units	(20)		(53)		(30)		(8)
Limited partners’ interest in net loss	$	(6,753)	$	(10,550)	$	(10,762)	$	(4,115)

    The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Basic weighted average limited partner units outstanding	38,687,874	38,661,852	38,689,434	38,654,891
Dilutive effect of restricted units issued	—	—	—	—
Total weighted average limited partner diluted units outstanding	38,687,874	38,661,852	38,689,434	38,654,891

    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 periods presented. All common unit equivalents were antidilutive for the three and nine months ended September 30, 2021 and 2020 because the limited partners were allocated a net loss in this period.

NOTE 10. UNIT BASED AWARDS

The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated and condensed financial statements in accordance with certain provisions of ASC 718. Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Restricted unit Awards
Employees	$	—	$	305	$	194	$	907
Non-employee directors	48		56		142		163
Phantom unit Awards
Employees	181		—		181		—
Non-employee directors	—		—		—		—
Total unit-based compensation expense	$	229	$	361	$	517	$	1,070

21

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

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.

Phantom Unit Plan

On July 21, 2021, the board of directors of the general partner of the Partnership and the Compensation Committee approved the Martin Midstream Partners L.P. 2021 Phantom Unit Plan (the “Plan”), effective as of the same date. The Plan permits 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 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 30th 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 Plan), the award will vest in full and be paid in cash no later than the 30th 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 July 21, 2021, 620,000 phantom units and 1,245,000 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership.

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 and Condensed Statements of Operations. All of the Partnership's outstanding phantom unit awards at September 30, 2021 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 "Other current liabilities" and "Other long-term obligations" in the Consolidated and Condensed Balance Sheets.As of September 30, 2021, there was a total of $2,021 of unrecognized compensation costs related to non-vested phantom unit awards. These costs are expected to be recognized over a remaining life of 2.81 years.

22

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

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 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 of the general partner’s board of directors (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 plan containing such terms as the Compensation Committee shall determine under the plan. 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 ("Performance Based Restricted Units" or "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 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 performance conditions related to the PBRUs awarded on March 1, 2018 were not achieved and the Partnership treated these units as forfeited at expiration on March 31, 2021. As such, the Partnership did not recognize compensation expense related to these units.

The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally vest in equal annual installments over three years of service. All of the Partnership's outstanding restricted unit awards at September 30, 2021 met the criteria to be treated under equity classification.

In February 2021, the Partnership issued 14,056 TBRUs to each of the Partnership's three independent directors under the 2017 LTIP.  These restricted common units vest in equal installments of 3,514 units on January 24, 2022, 2023, 2024, and 2025.

23

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

    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 nine months ended September 30, 2021 is provided below:

	Number of Units		Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period	273,424		$	10.52
Granted (TBRU)	42,168		$	2.49
Vested	(117,280)		$	11.96
Forfeited	(83,436)		$	13.90
Non-Vested, end of period	114,876		$	3.65
Aggregate intrinsic value, end of period	$	368

    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 three and nine months ended September 30, 2021 and 2020 is provided below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Aggregate intrinsic value of units vested	$	—	$	—	$	257	$	151
Fair value of units vested	—		—		1,418		1,427

    As of September 30, 2021, there was $296 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 2.69 years.

NOTE 11. RELATED PARTY TRANSACTIONS

As of September 30, 2021, Martin Resource Management Corporation owns 6,114,532 of the Partnership’s common units representing approximately 15.8% of the Partnership’s outstanding limited partner units.  Martin Resource Management Corporation controls the Partnership's general partner by virtue of its 51% voting interest in 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 and the Partnership’s IDRs.  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 September 30, 2021, 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 and transactions:

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.

24

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

    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;

•distributing NGLs; 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;

◦supplying employees and services for the operation of the Partnership's business; and

◦operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, and South Houston, Texas.

•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 of the board of directors of the general partner of the Partnership (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

25

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

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, 2021, through December 31, 2021, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $14,386. The Partnership reimbursed Martin Resource Management Corporation for $3,597 and $4,103 of indirect expenses for the three months ended September 30, 2021 and 2020, respectively.  The Partnership reimbursed Martin Resource Management Corporation for $10,790 and $12,364 of indirect expenses for the nine months ended September 30, 2021 and 2020, respectively.  The Conflicts Committee 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.  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.

Master Transportation Services Agreement

    Master Transportation Agreement.  Martin Transport, Inc. ("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

26

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

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.

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 Mexico 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.

Terminal Services Agreements

    Diesel Fuel Terminal Services Agreement.  Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution.  At such time, the per-gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index.  This agreement was further amended on January 1, 2017, October 1, 2017, April 1, 2019, and January 1, 2020 to modify its minimum throughput requirements and throughput fees. The term of this agreement is currently evergreen and it will continue on a month to month basis until terminated by either party by giving 60 days’ written notice.  

    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.

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.  As of December 31, 2019, the annual capital recovery fee reimbursement of $2,088 expired. An additional $2,586 of capital recovery fee reimbursement expired on December 31, 2020.  All of these fees (other than the fuel surcharge and capital recovery fee) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period. Also, the Partnership renegotiated a crude transportation contract set to expire in the first half of 2022, resulting in a reduction in revenue of $2,145 annually beginning January 1, 2020.

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 46% 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 three months ended September 30, 2021 and 2020 were

27

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

$283 and $173, respectively. Amounts paid to East Texas Mack for tractor and trailer lease payments and lease residuals for the nine months ended September 30, 2021 and 2020 were $801 and $432, respectively.

    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 and Condensed 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 captions of the consolidated and condensed financial statements 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 and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues:
Terminalling and storage	$	15,866	$	15,902	$	46,741	$	47,718
Transportation	5,564		5,514		14,463		16,801
Product sales:
Sulfur services	28		5		87		33
Terminalling and storage	40		64		166		166
	68		69		253		199
	$	21,498	$	21,485	$	61,457	$	64,718

    The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of products sold:
Sulfur services	$	2,441	$	2,512	$	7,379	$	7,833
Terminalling and storage	7,259		4,303		18,863		14,329
	$	9,700	$	6,815	$	26,242	$	22,162

    The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating expenses:
Transportation	$	13,949	$	13,009	$	40,652	$	41,950
Natural gas liquids	534		486		1,511		1,481
Sulfur services	1,321		1,120		3,370		3,403
Terminalling and storage	4,284		4,300		12,513		13,292
	$	20,088	$	18,915	$	58,046	$	60,126

28

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

    The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Selling, general and administrative:
Transportation	$	1,732	$	1,803	$	5,103	$	5,459
Natural gas liquids	576		772		2,660		2,009
Sulfur services	813		765		2,320		2,254
Terminalling and storage	878		863		2,530		2,536
Indirect, including overhead allocation	3,660		4,153		11,011		12,465
	$	7,659	$	8,356	$	23,624	$	24,723

NOTE 12. BUSINESS SEGMENTS

    The Partnership has four reportable segments: (1) terminalling and storage, (2) transportation, (3) sulfur services and (4) natural gas liquids. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions.

    The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of interest expense.

Three Months Ended September 30, 2021	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	51,226		(1,648)		49,578		7,049		3,269		2,087
Transportation	42,568		(3,489)		39,079		3,710		430		1,086
Sulfur services	30,837		—		30,837		2,594		4,534		1,104
Natural gas liquids	91,764		—		91,764		592		3,994		20
Indirect selling, general and administrative	—		—		—		—		(4,074)		—
Total	$	216,395	$	(5,137)	$	211,258	$	13,945	$	8,153	$	4,297

Three Months Ended September 30, 2020	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	48,188		(1,823)		46,365		7,294		6,426		1,863
Transportation	35,712		(3,774)		31,938		4,412		(2,673)		1,785
Sulfur services	21,880		—		21,880		2,953		7,115		1,393
Natural gas liquids	52,350		—		52,350		617		4,668		173
Indirect selling, general and administrative	—		—		—		—		(4,523)		—
Total	$	158,130	$	(5,597)	$	152,533	$	15,276	$	11,013	$	5,214

    

29

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

Nine Months Ended September 30, 2021	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	136,584	$	(4,918)	$	131,666	$	21,150	$	8,153	$	6,258
Transportation	114,886		(11,066)		103,820		12,039		(7,782)		2,702
Sulfur services	103,958		—		103,958		7,882		21,136		4,968
Natural gas liquids	257,081		—		257,081		1,791		21,738		481
Indirect selling, general and administrative	—		—		—		—		(11,773)		—
Total	$	612,509	$	(15,984)	$	596,525	$	42,862	$	31,472	$	14,409

Nine Months Ended September 30, 2020	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	146,298	$	(5,091)	$	141,207	$	22,022	$	10,153	$	8,885
Transportation	116,145		(13,781)		102,364		13,020		(9,772)		6,483
Sulfur services	83,636		(13)		83,623		8,978		29,787		6,267
Natural gas liquids	164,865		(5)		164,860		1,838		17,661		348
Indirect selling, general and administrative	—		—		—		—		(13,256)		—
Total	$	510,944	$	(18,890)	$	492,054	$	45,858	$	34,573	$	21,983

    The Partnership's assets by reportable segment as of September 30, 2021 and December 31, 2020, are as follows:

	September 30, 2021		December 31, 2020
Total assets:
Terminalling and storage	$	249,723	$	252,794
Transportation	142,767		151,953
Sulfur services	97,986		94,154
Natural gas liquids	123,762		80,737
Total assets	$	614,238	$	579,638

NOTE 13. 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 lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil.  The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct.  Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations.  The lawsuits against the customer have been transferred to the United States

30

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

District Court for the Western District of Missouri for consolidated pretrial proceedings.  On March 1, 2017, at the request of the parties, the Chancery Court of Davidson County, Tennessee administratively closed the Partnership's lawsuit pending rulings in the United States District Court for the Western District of Missouri.  In the event that either party moves the Chancery Court of Davidson County, Tennessee to reopen the case, we expect the Court would grant such motion and reopen the case.  Further, the same customer has made a claim under the Partnership’s insurance policy.  The insurer has denied the claim.  However, in the event that the customer is successful in pursuing the claim, such action would negatively impact the Partnership because the Partnership may have certain reimbursement obligations it would owe the insurance company.  If the case is reopened or the insurance claim by the customer is successful, we are currently unable to determine the exposure we may have in this matter, if any.

NOTE 14. 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.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 2
	September 30, 2021		December 31, 2020
Commodity derivative contracts, net	$	(5,049)	$	(207)

    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 revolving 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 2021 Notes, 2024 Notes, and 2025 Notes (collectively, the "Senior Notes") is considered Level 1, as the fair value is based on quoted market prices in active markets.

	September 30, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Notes	$	—	$	—	$	28,790	$	28,581
2024 Notes	$	51,031	$	55,126	$	50,173	$	55,214
2025 Notes	$	290,563	$	302,797	$	290,250	$	288,692
Total	$	341,594	$	357,923	$	369,213	$	372,487

NOTE 15. CONDENSED CONSOLIDATED FINANCIAL INFORMATION

31

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

    The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. Martin Operating Partnership L.P. (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 Senior Notes and any subsidiaries other than the subsidiary guarantors are minor.

NOTE 16. INCOME TAXES

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Provision for income taxes	$	954	$	373	$	2,111	$	1,510

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. MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (the "Taxable Subsidiary"). Total income tax expense of $895 and $225, related to the operation of the Taxable Subsidiary, for the three months ended September 30, 2021 and 2020, resulted in an effective income tax rate ("ETR") of 23.42% and 45.72%, respectively. Total income tax expense of $1,871 and $1,162, related to the operation of the Taxable Subsidiary, for the nine months ended September 30, 2021 and 2020, resulted in an ETR of 29.51% and 80.42%, respectively.

The decrease in the ETR for the income taxes during the three and nine months ended September 30, 2021, was primarily due to significantly larger pretax income recorded for both the three and nine months ended September 30, 2021 compared to the similar periods in 2020. The increase in the provision for income taxes for the three and nine months ended September 30, 2021, compared to similar periods in 2020, was primarily due to an increase in income before income taxes in the current period.

    A current federal income tax expense (benefit) of $153 and $0, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2021 and 2020, respectively. A current federal income tax expense (benefit) of $276 and $(174), related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2021 and 2020, respectively. A current state income tax expense of $81 and $41, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2021 and 2020, respectively. A current state income tax expense of $177 and $134, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2021 and 2020, respectively.

With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. 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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which 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.

    A deferred tax expense related to the MTI temporary differences of $661 and $183 was recorded for the three months ended September 30, 2021 and 2020, respectively. A deferred tax expense related to the MTI temporary differences of $1,419 and $1,202 was recorded for the nine months ended September 30, 2021 and 2020, respectively. A net deferred tax asset of $20,834 and $22,253, related to the cumulative book and tax temporary differences, existed at September 30, 2021 and December 31, 2020, respectively.

    All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.

32

MARTIN MIDSTREAM PARTNERS L.P.

NOTES TO CONSOLIDATED AND CONDENSED FINANCIAL STATEMENTS

(Dollars in thousands, except where otherwise indicated)

September 30, 2021

(Unaudited)

NOTE 17. SUBSEQUENT EVENTS

Quarterly Distribution. On October 20, 2021, the Partnership declared a quarterly cash distribution of $0.005 per common unit for the third quarter of 2021, or $0.020 per common unit on an annualized basis, which will be paid on November 12, 2021 to unitholders of record as of November 5, 2021.

33

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

    You should read the following discussion of our financial condition and results of operations in conjunction with the consolidated and condensed financial statements and the notes thereto included elsewhere in this quarterly report.

Overview

We are a publicly traded limited partnership with a diverse set of operations focused primarily in the U.S. Gulf Coast region. Our four primary business lines include:

•Terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil;

•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

•NGL marketing, distribution, and transportation services.

The petroleum products and by-products we collect, transport, store and market are produced primarily by major and independent oil and gas companies who often turn to third parties, such as us, for the transportation and disposition of these products. In addition to these major and independent oil and gas companies, our primary customers include independent refiners, large chemical companies, and other wholesale purchasers of these products. We operate primarily in the U.S. Gulf Coast region. This region is a major hub for petroleum refining, natural gas gathering and processing, and support services for the exploration and production industry.

    We were formed in 2002 by Martin Resource Management Corporation, a privately-held company whose initial predecessor was incorporated in 1951 as a supplier of products and services to drilling rig contractors. Since then, Martin Resource Management Corporation has expanded its operations through acquisitions and internal expansion initiatives as its management identified and capitalized on the needs of producers and purchasers of petroleum products and by-products and other bulk liquids. Martin Resource Management Corporation is an important supplier and customer of ours. As of September 30, 2021, Martin Resource Management Corporation owned 15.8% of our total outstanding common limited partner units. Furthermore, Martin Resource Management Corporation controls Martin Midstream GP LLC ("MMGP"), our general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of MMGP. MMGP owns a 2.0% general partner interest in us and all of our incentive distribution rights. Martin Resource Management Corporation directs our business operations through its ownership interests in and control of our general partner.

    We entered into the Omnibus Agreement 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 our use of certain of Martin Resource Management Corporation’s trade names and trademarks. Under the terms of the Omnibus Agreement, the employees of Martin Resource Management Corporation are responsible for conducting our business and operating our assets.

    Martin Resource Management Corporation has operated our business since our inception in 2002.  Martin Resource Management Corporation began operating our NGL business in the 1950s and our sulfur business in the 1960s. It began our land transportation business in the early 1980s and our marine transportation business in the late 1980s. It entered into our fertilizer and terminalling and storage businesses in the early 1990s.

Significant Recent Developments

Hurricane Ida. On August 29, 2021, Hurricane Ida ("Ida") made landfall in Southeast Louisiana as a category 4 hurricane. The effects of Ida did not have a material impact on our Gulf Coast shore-based terminal operations nor did we experience any material storm-related damage. As of September 30, 2021, we have spent approximately $0.2 million on restoration and recovery costs as a result of Ida and expect the total spend to be approximately $0.2 million.

Winter Storm Uri. In February 2021, we experienced Winter Storm Uri ("Uri"), an unprecedented storm bringing extreme cold temperatures to Texas and the surrounding areas, which resulted in gulf coast refineries running at reduced rates or halting operations entirely. The majority of the impact we experienced was centered around our transportation and sulfur

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services segments where we saw reduced activity due to Uri's impact on Gulf Coast refinery utilization. Additionally, our Smackover Refinery was down approximately nine days due to Uri, during which time we began preparations for the previously scheduled turnaround in March of 2021. This allowed us to minimize the amount of downtime at the Smackover Refinery which was back in operation by March 9, 2021.

COVID-19. We continue to monitor the impacts of the COVID-19 pandemic (including variants of the virus) on all aspects of our business. Travel restrictions and stay-at-home orders in place during much of 2020 that were implemented by governments in many regions and countries across the globe, including the U.S., have greatly impacted the demand for refined products resulting in a significant reduction in refinery utilization, which impacted our 2020 performance and continues to impact our marine transportation business in 2021.

Looking forward, we expect to continue to experience some adverse impacts of COVID-19 in our marine transportation segment but we believe that refinery utilization will continue to increase in the second half of 2021 as a result of widespread vaccinations, government stimulus, and a rebounding economy. This should ultimately improve refined product demand as people generally return to in-person work and resume travel. We expect this will positively impact our marine transportation business as demand for our services improves.

Overall, the extent to which the duration and severity of the pandemic impacts our business, results of operations, and financial condition will depend on future developments, which are highly uncertain and cannot be predicted at this time. Accordingly, it is possible that the impact of the pandemic, including the impact of variants of COVID-19, such as the Delta variant, could have a material adverse effect on the Partnership's results of operations, financial position and cash flows for the year ended December 31, 2021 including the recoverability of long-lived assets and goodwill, the valuation of inventory, and the amount of expected credit losses.

Management considered the impact of the pandemic on the assumptions and estimates used in the preparation of the financial statements. A sustained reduction in refinery demand and utilization could lead to future asset impairments as well as adversely affect access to capital and financing to be able to meet future obligations. Management also assessed the extent to which the current macroeconomic events brought about by the pandemic and significant declines in refined product demand impacted the valuation of expected credit losses on accounts receivable and certain inventory items or resulted in modifications to any significant contracts. Ultimately the results of these assessments did not have a material impact on our results as of September 30, 2021.

Sale of Mega Lubricants. On December 22, 2020, we entered into an asset purchase and sale agreement to sell certain assets used in connection with our Mega Lubricants shore-based terminals business ("Mega Lubricants") to John W. Stone Oil Distributor, LLC ("Stone Oil") for $22.4 million. Mega Lubricants is engaged in the business of blending, manufacturing and delivering various marine application lubricants, sub-sea specialty fluids, and proprietary commercial and industrial products. The transaction closed on December 22, 2020. The proceeds from the transaction were used to reduce outstanding borrowings under our revolving credit facility.

Subsequent Events

Quarterly Distribution. On October 20, 2021, we declared a quarterly cash distribution of $0.005 per common unit for the third quarter of 2021, or $0.020 per common unit on an annualized basis, which will be paid on November 12, 2021 to unitholders of record as of November 5, 2021.

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Critical Accounting Policies and Estimates    

    Our discussion and analysis of our financial condition and results of operations are based on the historical consolidated and condensed financial statements included elsewhere herein. We prepared these financial statements in conformity with U.S. GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances. We routinely evaluate these estimates, utilizing historical experience, consultation with experts and other methods we consider reasonable in the particular circumstances. Our results may differ from these estimates, and any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Changes in these estimates could materially affect our financial position, results of operations or cash flows. See the "Critical Accounting Policies and Estimates" section in "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Note 2, "Significant Accounting Policies" in Notes to Consolidated Financial Statements included within our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

Our Relationship with Martin Resource Management Corporation

 Martin Resource Management Corporation is engaged in the following principal business activities:

•distributing fuel oil, asphalt, marine fuel and other liquids;

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

•operating a crude oil gathering business in Stephens, Arkansas;

•providing crude oil gathering, refining, and marketing services of base oils, asphalt, and distillate products in Smackover, Arkansas;

•providing crude oil marketing and transportation from the well head to the end market;

•operating an environmental consulting company;

•supplying employees and services for the operation of our business; and

•operating, solely for our account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, and South Houston, Texas

We are and will continue to be closely affiliated with Martin Resource Management Corporation as a result of the following relationships.

Ownership

    Martin Resource Management Corporation owns approximately 15.8% of the outstanding limited partner units. In addition, Martin Resource Management Corporation controls MMGP, our general partner, by virtue of its 51% voting interest in Holdings, the sole member of MMGP. MMGP owns a 2% general partner interest in us and all of our incentive distribution rights.

    Management

Martin Resource Management Corporation directs our business operations through its ownership interests in and control of our general partner. We benefit from our relationship with Martin Resource Management Corporation through access to a significant pool of management expertise and established relationships throughout the energy industry. We do not have employees. Martin Resource Management Corporation employees are responsible for conducting our business and operating our assets on our behalf.

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Related Party Agreements

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 $33.8 million of direct costs and expenses for the three months ended September 30, 2021 compared to $29.9 million for the three months ended September 30, 2020. We reimbursed Martin Resource Management Corporation for $96.9 million of direct costs and expenses for the nine months ended September 30, 2021 compared to $94.5 million for the nine months ended September 30, 2020. 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 Corporation for indirect general and administrative and corporate overhead expenses.  In each of the three months ended September 30, 2021 and 2020, the Conflicts Committee approved reimbursement amounts of $3.6 million and $4.2 million, respectively. In each of the nine months ended September 30, 2021 and 2020, the Conflicts Committee approved reimbursement amounts of $10.8 million and $12.5 million, respectively. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.  These indirect expenses covered the centralized corporate functions Martin Resource Management Corporation provides for us, such as accounting, treasury, clerical, engineering, legal, billing, information technology, administration of insurance, general office expenses and employee benefit plans and other general corporate overhead functions we share with Martin Resource Management Corporation’s retained businesses.  The Omnibus Agreement also contains significant non-compete provisions and indemnity obligations.  Martin Resource Management Corporation also licenses certain of its trademarks and trade names to us under the Omnibus Agreement.

    These additional agreements include, but are not limited to, a master transportation services agreement, marine transportation agreements, terminal services agreements, a tolling agreement, and a sulfuric acid sales agency agreement. Pursuant to the terms of the Omnibus Agreement, we are prohibited from entering into certain material agreements with Martin Resource Management Corporation without the approval of the Conflicts Committee.

    For a more comprehensive discussion concerning the Omnibus Agreement and the other agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13. Certain Relationships and Related Transactions, and Director Independence" set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

Commercial

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 18% and 23% of our total costs and expenses during the three months ended September 30, 2021 and 2020, respectively. In the aggregate, the impact of related party transactions included in total costs and expenses accounted for approximately 19% and 23% of our total costs and expenses during the nine months ended September 30, 2021 and 2020, respectively.

Correspondingly, Martin Resource Management Corporation is one of our significant customers. Our sales to Martin Resource Management Corporation accounted for approximately 10% and 14% of our total revenues for the three months ended September 30, 2021 and 2020, respectively. Our sales to Martin Resource Management Corporation accounted for approximately 10% and 13% of our total revenues for the nine months ended September 30, 2021 and 2020, respectively.

For a more comprehensive discussion concerning the agreements that we have entered into with Martin Resource Management Corporation, please refer to "Item 13. Certain Relationships and Related Transactions, and Director Independence" set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

Approval and Review of Related Party Transactions

If we contemplate entering into a transaction, other than a routine or in the ordinary course of business transaction, in which a related person will have a direct or indirect material interest, the proposed transaction is submitted for consideration to the board of directors of our general partner or to our management, as appropriate. If the board of directors of our general partner is involved in the approval process, it determines whether to refer the matter to the Conflicts Committee of our general partner's board of directors, as constituted under our limited partnership agreement. If a matter is referred to the Conflicts

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Committee, it obtains information regarding the proposed transaction from management and determines whether to engage independent legal counsel or an independent financial advisor to advise the members of the committee regarding the transaction.  If the Conflicts Committee retains such counsel or financial advisor, it considers such advice and, in the case of a financial advisor, such advisor’s opinion as to whether the transaction is fair and reasonable to us and to our unitholders.

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How We Evaluate Our Operations

Our management uses a variety of financial and operational measurements other than our financial statements prepared in accordance with U.S. GAAP to analyze our performance. These include: (1) net income before interest expense, income tax expense, and depreciation and amortization ("EBITDA"), (2) adjusted EBITDA, (3) distributable cash flow and (4) adjusted free cash flow. Our management views these measures as important performance measures of core profitability for our operations and the ability to generate and distribute cash flow, and as key components of our internal financial reporting. We believe investors benefit from having access to the same financial measures that our management uses.

EBITDA and 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. Certain items excluded from EBITDA and adjusted EBITDA are significant components in understanding and assessing an entity's financial performance, such as cost of capital and historical costs of depreciable assets. We have included information concerning EBITDA and adjusted EBITDA because it provides investors and management with additional information to better understand the following: financial performance of our assets without regard to financing methods, capital structure or historical cost basis; our operating performance and return on capital as compared to those of other similarly situated entities; and the viability of acquisitions and capital expenditure projects. Our method of computing adjusted EBITDA may not be the same method used to compute similar measures reported by other entities. The economic substance behind our use of adjusted EBITDA is to measure the ability of our assets to generate cash sufficient to pay interest costs, support our indebtedness and make distributions to our unitholders.

Distributable Cash Flow. We define Distributable Cash Flow as Adjusted EBITDA less cash paid for interest, cash paid for income taxes, maintenance capital expenditures, and plant turnaround costs. Distributable cash flow is a significant performance measure used by our management and by external users of our financial statements, such as investors, commercial banks and research analysts, to compare basic cash flows generated by us to the cash distributions it expects to pay unitholders. Distributable cash flow is also an important financial measure for our unitholders since it serves as an indicator of our success in providing a cash return on investment. Specifically, this financial measure indicates to investors whether or not we are generating cash flow at a level that can sustain or support an increase in our quarterly distribution rates. Distributable cash flow is also a quantitative standard used throughout the investment community with respect to publicly-traded partnerships because the value of a unit of such an entity is generally determined by the unit's yield, which in turn is based on the amount of cash distributions the entity pays to a unitholder.

Adjusted Free Cash Flow. Adjusted free cash flow is defined as distributable cash flow less growth capital expenditures and principle payments under finance lease obligations. Adjusted free cash flow is a significant performance measure used by our management and by external users of our financial statements and represents how much cash flow a business generates during a specified time period after accounting for all capital expenditures, including expenditures for growth and maintenance capital projects. We believe that adjusted free cash flow is important to investors, lenders, commercial banks and research analysts since it reflects the amount of cash available for reducing debt, investing in additional capital projects, paying distributions, and similar matters. Our calculation of adjusted free cash flow may or may not be comparable to similarly titled measures used by other entities.

EBITDA, adjusted EBITDA, distributable cash flow and adjusted free cash flow should not be considered alternatives to, or more meaningful than, net income, cash flows from operating activities, or any other measure presented in accordance with U.S. GAAP. Our method of computing these measures may not be the same method used to compute similar measures reported by other entities.

Reconciliation of Non-GAAP Financial Measures

The following table reconciles the non-GAAP financial measurements used by management to our most directly comparable GAAP measures for the three and nine months ended September 30, 2021 and 2020.

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Reconciliation of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted Free Cash Flow

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(in thousands)				(in thousands)
Net loss	$	(6,911)	$	(10,819)	$	(11,012)	$	(4,207)
Less: Loss from discontinued operations, net of income taxes	—		—		—		—
Income (loss) from continuing operations	(6,911)		(10,819)		(11,012)		(4,207)
Adjustments:
Interest expense, net	14,110		12,943		40,372		32,245
Income tax expense	954		373		2,111		1,510
Depreciation and amortization	13,945		15,276		42,862		45,858
EBITDA	22,098		17,773		74,333		75,406
Adjustments:
(Gain) loss on sale of property, plant and equipment, net	(61)		(22)		610		153
Gain on involuntary conversion of property, plant and equipment	(186)		(4,522)		(186)		(4,522)
Unrealized mark-to-market on commodity derivatives	(412)		393		(207)		(276)
Non-cash insurance related accruals	—		—		—		250
Lower of cost or market adjustments	—		35		—		370
Loss on exchange of senior unsecured notes	—		8,516		—		8,516
Gain on repurchase of senior unsecured notes	—		—		—		(3,484)
Non-cash unit-based compensation	48		361		336		1,070
Adjusted EBITDA	21,487		22,534		74,886		77,483
Adjustments:
Interest expense, net	(14,110)		(12,943)		(40,372)		(32,245)
Income tax expense	(954)		(373)		(2,111)		(1,510)
Amortization of debt discount			—		—		—
Amortization of debt premium	—		(38)		—		(191)
Amortization of deferred debt issuance costs	1,064		1,683		2,585		2,674
Deferred income tax expense	661		184		1,419		1,202
Payments for plant turnaround costs	(985)		(406)		(2,679)		(637)
Maintenance capital expenditures	(1,945)		(2,576)		(8,386)		(7,882)
Distributable Cash Flow	$	5,218	$	8,065	$	25,342	$	38,894
Adjustments:
Expansion capital expenditures	$	(1,367)	$	(1,951)	$	(3,344)	$	(9,882)
Principal payments under finance lease obligations	(57)		(799)		(2,648)		(4,021)
Adjusted Free Cash Flow	$	3,794	$	5,315	$	19,350	$	24,991

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Results of Operations

    The results of operations for the three and nine months ended September 30, 2021 and 2020 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 and nine months ended September 30, 2021 and 2020.  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.

Our consolidated and condensed results of operations are presented on a comparative basis below.  There are certain items of income and expense which we do not allocate on a segment basis.  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 September 30, 2021 Compared to the Three Months Ended September 30, 2020

	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues  after Eliminations		Operating Income (Loss)		Operating Income (Loss) Intersegment Eliminations		Operating Income (Loss)  after Eliminations
Three Months Ended September 30, 2021	(in thousands)
Terminalling and storage	$	51,226	$	(1,648)	$	49,578	$	4,439	$	(1,170)	$	3,269
Transportation	42,568		(3,489)		39,079		3,927		(3,497)		430
Sulfur services	30,837		—		30,837		2,282		2,252		4,534
Natural gas liquids	91,764		—		91,764		1,579		2,415		3,994
Indirect selling, general and administrative	—		—		—		(4,074)		—		(4,074)
Total	$	216,395	$	(5,137)	$	211,258	$	8,153	$	—	$	8,153

	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues  after Eliminations		Operating Income (Loss)		Operating Income (Loss) Intersegment Eliminations		Operating Income (Loss)  after Eliminations
Three Months Ended September 30, 2020	(in thousands)
Terminalling and storage	$	48,188	$	(1,823)	$	46,365	$	6,975	$	(549)	$	6,426
Transportation	35,712		(3,774)		31,938		1,127		(3,800)		(2,673)
Sulfur services	21,880		—		21,880		5,580		1,535		7,115
Natural gas liquids	52,350		—		52,350		1,854		2,814		4,668
Indirect selling, general and administrative	—		—		—		(4,523)		—		(4,523)
Total	$	158,130	$	(5,597)	$	152,533	$	11,013	$	—	$	11,013

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Nine Months Ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020

	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues  after Eliminations		Operating Income (Loss)		Operating Income (Loss) Intersegment Eliminations		Operating Income (Loss)  after Eliminations
Nine Months Ended September 30, 2021	(in thousands)
Terminalling and storage	$	136,584	$	(4,918)	$	131,666	$	11,567	$	(3,414)	$	8,153
Transportation	114,886		(11,066)		103,820		3,286		(11,068)		(7,782)
Sulfur services	103,958		—		103,958		15,032		6,104		21,136
Natural gas liquids	257,081		—		257,081		13,360		8,378		21,738
Indirect selling, general and administrative	—		—		—		(11,773)		—		(11,773)
Total	$	612,509	$	(15,984)	$	596,525	$	31,472	$	—	$	31,472

	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues  after Eliminations		Operating Income (Loss)		Operating Income (Loss) Intersegment Eliminations		Operating Income (Loss)  after Eliminations
Nine Months Ended September 30, 2020	(in thousands)
Terminalling and storage	$	146,298	$	(5,091)	$	141,207	$	11,356	$	(1,203)	$	10,153
Transportation	116,145		(13,781)		102,364		4,071		(13,843)		(9,772)
Sulfur services	83,636		(13)		83,623		24,261		5,526		29,787
Natural gas liquids	164,865		(5)		164,860		8,141		9,520		17,661
Indirect selling, general and administrative	—		—		—		(13,256)		—		(13,256)
Total	$	510,944	$	(18,890)	$	492,054	$	34,573	$	—	$	34,573

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Terminalling and Storage Segment

Comparative Results of Operations for the Three Months Ended September 30, 2021 and 2020

	Three Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands, except BBL per day)
Revenues:
Services	$	20,628	$	22,512	$	(1,884)	(8)	%
Products	30,598		25,676		4,922		19	%
Total revenues	51,226		48,188		3,038		6	%
Cost of products sold	24,618		20,381		4,237		21	%
Operating expenses	13,789		12,064		1,725		14	%
Selling, general and administrative expenses	1,528		1,537		(9)		(1)	%
Depreciation and amortization	7,049		7,294		(245)		(3)	%
	4,242		6,912		(2,670)		(39)	%
Other operating income, net	11		1		10		1,000	%
Gain on involuntary conversion of property, plant and equipment	186		62		124		200	%
Operating income	$	4,439	$	6,975	$	(2,536)	(36)	%
Shore-based throughput volumes (guaranteed minimum) (gallons)	20,000		20,000		—		—	%
Smackover refinery throughput volumes (guaranteed minimum BBL per day)	6,500		6,500		—		—	%

Services revenues. Services revenues decreased $1.9 million, of which $1.0 million was primarily a result of contract termination fees, and $0.9 million was related to the disposition of the consigned lube business as part of the Mega Lubricants sale at our shore-based terminals. In addition, revenue at the Smackover refinery decreased $0.2 million primarily due to the expiration of the capital recovery fee of $0.7 million, offset by contractually prescribed, index-based fee adjustments of $0.3 million and natural gas surcharge revenue of $0.1 million.

Products revenues. The disposition of our Mega Lubricants business resulted in a $4.2 million decrease in product revenues at our shore-based terminals. Offsetting this reduction, a 32% increase in average sales price combined with a 7% rise in sales volumes at our blending and packaging facilities resulted in a $9.2 million increase to products revenues.

Cost of products sold. The disposition of our Mega Lubricants business resulted in a $5.0 million decrease in cost of products sold at our shore-based terminals. Offsetting this reduction, a 48% increase in average cost per gallon combined with a 7% rise in sales volumes at our blending and packaging facilities resulted in a $9.3 million increase in cost of products sold.

Operating expenses. Operating expenses increased primarily as a result of utilities of $1.1 million, repairs and maintenance of $0.3 million and lease expense of $0.1 million.

Selling, general and administrative expenses. Selling, general and administrative expenses remained consistent.

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

Other operating income, net. Other operating income, net represents gains and losses from the disposition of property, plant and equipment.

Gain on involuntary conversion of property, plant and equipment.  The $0.2 million gain during the 2021 period is due to insurance proceeds received related to structural damage at one of our shore-based terminals. The $0.1 million gain during the 2020 period is due to insurance proceeds received related to structural damage at one of our specialty terminals during a weather incident at our Neches Terminal in May of 2019.

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Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020

	Nine Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands, except BBL per day)
Revenues:
Services	$	60,945	$	66,115	$	(5,170)	(8)	%
Products	75,639		80,183		(4,544)		(6)	%
Total revenues	136,584		146,298		(9,714)		(7)	%
Cost of products sold	60,318		68,066		(7,748)		(11)	%
Operating expenses	39,246		37,269		1,977		5	%
Selling, general and administrative expenses	4,495		4,594		(99)		(2)	%
Depreciation and amortization	21,150		22,022		(872)		(4)	%
	11,375		14,347		(2,972)		(21)	%
Other operating income (loss), net	6		(3,053)		3,059		100	%
Gain on involuntary conversion of property, plant and equipment	186		62		124		200	%
Operating income	$	11,567	$	11,356	$	211	2	%
Shore-based throughput volumes (guaranteed minimum) (gallons)	60,000		60,000		—		—	%
Smackover refinery throughput volumes (guaranteed minimum) (BBL per day)	6,500		6,500		—		—	%

Services revenues. Services revenues decreased $5.2 million, of which $3.5 million was primarily a result of the disposition of the consigned lube business as part of the Mega Lubricants sale as well as a $1.0 million decrease related to contract termination fees at our shore-based terminals. In addition, revenue at the Smackover refinery decreased $1.0 primarily due to the expiration of the capital recovery fee of $1.9 million, offset by $0.9 million in contractually prescribed, index-based fee adjustments. Offsetting these decreases were increases at our specialty terminals related to storage revenue of $0.4 million and service revenue of $0.2 million.

Products revenues. The disposition of our Mega Lubricants business resulted in a $17.1 million decrease in product revenues at our shore-based terminals. Offsetting this reduction, a 14% increase in average sales price and a 5% rise in sales volumes at our blending and packaging facilities resulted in a $12.8 million increase to products revenues.

Cost of products sold. The disposition of our Mega Lubricants business resulted in a $19.4 million decrease in cost of products sold at our shore-based terminals. Offsetting this reduction, an 18% increase in average cost per gallon and a 5% rise in sales volumes at our blending and packaging facilities resulted in an $11.8 million increase in cost of products sold.

Operating expenses. Operating expenses increased primarily as a result of utilities of $1.7 million, insurance premiums of $0.5 million, repairs and maintenance of $0.3 million, and lease expense of $0.2 million offset by lower compensation expense of $0.9 million

Selling, general and administrative expenses. Selling, general and administrative expenses remained consistent.

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

Other operating income (loss), net. Other operating income (loss), net represents gains and losses from the disposition of property, plant and equipment.

Gain on involuntary conversion of property, plant and equipment.  The $0.2 million gain during the 2021 period is due to insurance proceeds received related to structural damage at one of our shore-based terminals. The $0.1 million gain during

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the 2020 period is due to insurance proceeds received related to structural damage at one of our specialty terminals during a weather incident at our Neches Terminal in May of 2019.

Transportation Segment

Comparative Results of Operations for the Three Months Ended September 30, 2021 and 2020

	Three Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Revenues	$	42,568	$	35,712	$	6,856	19	%
Operating expenses	33,053		28,144		4,909		17	%
Selling, general and administrative expenses	1,920		2,050		(130)		(6)	%
Depreciation and amortization	3,710		4,412		(702)		(16)	%
	3,885		1,106		2,779		251	%
Other operating income, net	42		21		21		100	%
Operating income	$	3,927	$	1,127	$	2,800	248	%

Marine Transportation Revenues. Inland revenues decreased $2.7 million, primarily related to lower transportation rates and reduction in marine equipment. Offshore revenues increased $0.5 million primarily due to higher transportation rates. Additionally, ancillary revenue (primarily fuel) increased $0.3 million.

Land Transportation Revenues. Freight revenue increased $5.9 million. Transportation rates increased 22%, resulting in a $5.0 million increase and total miles increased 4%, resulting in a $1.0 million increase. Additionally, fuel surcharge revenue increased $2.8 million.

Operating expenses. The increase in operating expenses is primarily a result of increases in compensation expense of $2.1 million, pass-through expenses (primarily fuel) of $1.6 million, repairs and maintenance of $0.8 million and regulatory taxes of $0.3 million.

Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to decreased compensation expense.

Depreciation and amortization. Depreciation and amortization decreased as a result of disposals and assets being fully depreciated, offset by capital expenditures as well as a transfer of assets between segments during the second quarter of 2021.

Other operating income, net. Other operating income, net represents gains from the disposition of property, plant and equipment.

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Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020

	Nine Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Revenues	$	114,886	$	116,145	$	(1,259)	(1)	%
Operating expenses	94,042		91,637		2,405		3	%
Selling, general and administrative expenses	5,578		6,243		(665)		(11)	%
Depreciation and amortization	12,039		13,020		(981)		(8)	%
	$	3,227	$	5,245	$	(2,018)	(38)	%
Other operating income (loss), net	59		(1,174)		1,233		105	%
Operating income	$	3,286	$	4,071	$	(785)	(19)	%

Marine Transportation Revenues. Inland revenues decreased $13.9 million, primarily related to lower utilization, transportation rates, and reduction in marine equipment. Offshore revenues decreased $0.9 million primarily due to lower utilization offset by higher transportation rates. Additionally, ancillary revenue (primarily fuel) decreased $0.3 million.

Land Transportation Revenues. Freight revenue increased primarily due to an 11% increase in transportation rates resulting in a $7.2 million increase and a 3% increase in total miles, resulting in a $2.3 million increase. Additionally, fuel surcharge increased $4.3 million.

Operating expenses. The increase in operating expenses is primarily a result of pass through expenses (primarily fuel) of $2.7 million, repairs and maintenance of $1.3 million, offset by a decrease in outside towing of $1.7 million.

Selling, general and administrative expenses. Selling, general and administrative expenses decreased primarily due to decreased compensation expense.

Depreciation and amortization. Depreciation and amortization decreased as a result of disposals and assets being fully depreciated, offset by capital expenditures as well as a transfer of assets between segments during the second quarter of 2021.

Other operating income (loss), net. Other operating income (loss), net represents losses from the disposition of property, plant and equipment.

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Sulfur Services Segment

Comparative Results of Operations for the Three Months Ended September 30, 2021 and 2020

	Three Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Revenues:
Services	$	2,950	$	2,915	$	35	1	%
Products	27,887		18,965		8,922		47	%
Total revenues	30,837		21,880		8,957		41	%
Cost of products sold	21,799		14,141		7,658		54	%
Operating expenses	2,849		2,501		348		14	%
Selling, general and administrative expenses	1,321		1,166		155		13	%
Depreciation and amortization	2,594		2,953		(359)		(12)	%
	2,274		1,119		1,155		103	%
Other operating income, net	8		1		7		700	%
Operating income	$	2,282	$	1,120	$	1,162	104	%
Sulfur (long tons)	145		154		(9)		(6)	%
Fertilizer (long tons)	57		44		13		30	%
Total sulfur services volumes (long tons)	202		198		4		2	%

Services revenues.  Services revenues increased slightly as a result of a contractually prescribed, index-based fee adjustment.

Products revenues.  Products revenues increased $8.4 million as a result of a 44% rise in average sulfur services sales prices. Products revenues increased an additional $0.5 million due to a 2% increase in sales volumes, primarily related to a 30% increase in fertilizer volumes.

Cost of products sold.  A 51% increase in product cost impacted cost of products sold by $7.2 million, resulting from a rise in commodity prices. A 2% increase in sales volumes resulted in an additional increase in cost of products sold of $0.4 million.  Margin per ton increased $5.77, or 24%.

Operating expenses.  Operating expenses increased due to an increase in marine fuel and lube expense of $0.3 million, a rise in insurance premiums and claims of $0.1 million, and an increase in harbor agency fees of $0.1 million. Offsetting this increase was a decrease of $0.1 million in repairs and maintenance.

Selling, general and administrative expenses.   Selling, general and administrative expenses increased $0.1 million in employee related expenses and $0.1 million in corporate overhead.

Depreciation and amortization.   Depreciation and amortization decreased as a result of certain assets being fully depreciated in the prior period as well as a transfer of assets between segments during the three months ended June 30, 2021. A further decline was attributable to reduced amortization of turnaround costs.

Other operating income, net.  Other operating income, net represents gains and losses on the disposition of property, plant and equipment.

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Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020    

	Nine Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Revenues:
Services	$	8,849	$	8,744	$	105	1	%
Products	95,109		74,892		20,217		27	%
Total revenues	103,958		83,636		20,322		24	%
Cost of products sold	69,619		49,546		20,073		41	%
Operating expenses	7,662		8,553		(891)		(10)	%
Selling, general and administrative expenses	3,777		3,535		242		7	%
Depreciation and amortization	7,882		8,978		(1,096)		(12)	%
	15,018		13,024		1,994		15	%
Other operating income, net	14		6,777		(6,763)		(100)	%
Gain on involuntary conversion of property, plant and equipment	—		4,460		(4,460)		(100)	%
Operating income	$	15,032	$	24,261	$	(9,229)	(38)	%
Sulfur (long tons)	364		503		(139)		(28)	%
Fertilizer (long tons)	236		209		27		13	%
Total sulfur services volumes (long tons)	600		712		(112)		(16)	%

Services revenues.  Services revenues increased slightly as a result of a contractually prescribed, index-based fee adjustment.

Products revenues.  Products revenues increased $38.0 million as a result of a 51% rise in average sulfur services sales prices. Products revenues decreased $17.8 million due to a 16% decrease in sales volumes, primarily related to a 28% decrease in sulfur volumes.

Cost of products sold.  A 67% increase in product cost impacted cost of products sold by $33.1 million, resulting from a rise in commodity prices. A 16% decrease in sales volumes resulted in an offsetting decrease in cost of products sold of $13.0 million.  Margin per ton increased $6.89, or 19%.

Operating expenses.  Operating expenses decreased due to a reduction in outside towing of $0.4 million, repairs and maintenance of marine assets and railcars of $0.3 million, insurance premiums and claims of $0.2 million, assist tugs of $0.2 million, and lease expense of $0.1 million. Offsetting this decrease was an increase in utilities of $0.1 million, marine fuel of $0.1 million, and harbor agency fees of $0.1 million.

Selling, general and administrative expenses.   Selling, general and administrative expenses increased $0.1 million in employee related expenses and $0.1 million in corporate overhead.

Depreciation and amortization.   Depreciation and amortization decreased as a result of certain assets being fully depreciated in the prior period as well as a transfer of assets between segments during the three months ended June 30, 2021. A further decline was attributable to reduced amortization of turnaround costs.

Other operating income, net.  Other operating income, net decreased $2.7 million as a result of business interruption recoveries related to downtime associated with the Neches ship-loader insurance claim received in the first quarter of 2020. An additional $4.1 million decrease is related to a net gain from the disposition of property, plant and equipment during the first quarter of 2020.

Gain on involuntary conversion of property, plant and equipment.  The $4.5 million gain in the nine months ended September 30, 2020 is due to insurance proceeds received related to structural damage of our ship-loader assets during a weather incident at our Neches Terminal in May of 2019.

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Natural Gas Liquids Segment

Comparative Results of Operations for the Three Months Ended September 30, 2021 and 2020

	Three Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Products revenues	$	91,764	$	52,350	$	39,414	75	%
Cost of products sold	87,551		47,723		39,828		83	%
Operating expenses	1,088		1,039		49		5	%
Selling, general and administrative expenses	954		1,117		(163)		(15)	%
Depreciation and amortization	592		617		(25)		(4)	%
Operating income	$	1,579	$	1,854	$	(275)	(15)	%
NGL sales volumes (Bbls)	1,435		1,723		(288)		(17)	%

    Products Revenues. Our average sales price per barrel increased $33.56, or 110%, increasing revenues by $57.8 million. The increase in average sales price per barrel was due to a rise in commodity prices. Sales volumes decreased 17%, lowering revenues by $18.4 million.

Cost of products sold.  Our average cost per barrel increased $33.31, or 120%, increasing cost of products sold by $57.4 million.  The increase in average cost per barrel was due to a rise in commodity prices.  The decrease in sales volume of 17% resulted in a $17.6 million reduction to cost of products sold. Our margins improved $0.25 per barrel, or 9%, during the period.

Operating expenses.  Operating expenses remained relatively consistent.

Selling, general and administrative expenses.  Selling, general and administrative expenses decreased primarily due to decreased compensation expense.

    Depreciation and amortization. Depreciation and amortization remained relatively consistent.

Comparative Results of Operations for the Nine Months Ended September 30, 2021 and 2020

	Nine Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Products revenues	$	257,081	$	164,865	$	92,216	56	%
Cost of products sold	234,239		148,562		85,677		58	%
Operating expenses	3,144		3,128		16		1	%
Selling, general and administrative expenses	3,858		3,194		664		21	%
Depreciation and amortization	1,791		1,838		(47)		(3)	%
	14,049		8,143		5,906		73	%
Other operating loss, net	(689)		(2)		(687)		(34,350)	%
Operating income	$	13,360	$	8,141	$	5,219	64	%
NGL sales volumes (Bbls)	4,839		5,892		(1,053)		(18)	%

    Products Revenues. Our average sales price per barrel increased $25.15, or 90%, increasing revenues by $148.2 million. The increase in average sales price per barrel was due to a rise in commodity prices. Sales volumes decreased 18%, lowering revenues by $55.9 million.

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Cost of products sold.  Our average cost per barrel increased $23.19, or 92%, increasing cost of products sold by $136.7 million.  The increase in average cost per barrel was the result of an increase in market prices.  The decrease in sales volume of 18% resulted in a $51.0 million reduction to cost of products sold. Our margins improved $1.95 per barrel, or 71%, during the period.

    Operating expenses.  Operating expenses remained relatively consistent.

Selling, general and administrative expenses.  Selling, general and administrative increased primarily as a result of increased compensation expense.

Depreciation and amortization. Depreciation and amortization remained relatively consistent.

Other operating loss, net.  Other operating income, net represents gains and losses from the disposition of property, plant and equipment.

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Interest Expense, Net

Comparative Components of Interest Expense, Net for the Three Months Ended September 30, 2021 and 2020

	Three Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Revolving credit facility	$	2,631	$	2,200	$	431	20	%
Senior notes	9,846		8,528		1,318		15	%
Amortization of deferred debt issuance costs	1,064		1,683		(619)		(37)	%
Amortization of debt discount	—		(38)		38		100	%
Other	564		526		38		7	%
Finance leases	5		61		(56)		(92)	%
Capitalized interest	—		(17)		17		100	%
Total interest expense, net	$	14,110	$	12,943	$	1,167	9	%

Comparative Components of Interest Expense, Net for the Nine Months Ended September 30, 2021 and 2020

	Nine Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Revolving credit facility	$	6,948	$	6,364	$	584	9	%
Senior notes	29,349		21,738		7,611		35	%
Amortization of deferred debt issuance costs	2,585		2,674		(89)		(3)	%
Amortization of debt premium	—		(191)		191		100	%
Other	1,471		1,426		45		3	%
Finance leases	19		260		(241)		(93)	%
Capitalized interest	—		(26)		26		100	%
Total interest expense, net	$	40,372	$	32,245	$	8,127	25	%

Indirect Selling, General and Administrative Expenses

	Three Months Ended September 30,				Variance		Percent Change		Nine Months Ended September 30,				Variance		Percent Change
	2021		2020						2021		2020
	(In thousands)								(In thousands)
Indirect selling, general and administrative expenses	$	4,074	$	4,523	$	(449)	(10)	%	$	11,773	$	13,256	$	(1,483)	(11)	%

    Indirect selling, general and administrative expenses decreased for the three and nine months ended September 30, 2021 compared to the three and nine months ended September 30, 2020 primarily due to a decrease in the indirect expenses allocated from Martin Resource Management Corporation.

    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. This allocation is based on the percentage of time spent by Martin Resource Management Corporation personnel that provide such centralized services. GAAP also permits other methods for allocation of these expenses, such as basing the allocation on the percentage of revenues contributed by a segment. The allocation of these expenses between Martin Resource Management Corporation and us is subject to a number of judgments and estimates, regardless of the method used. We can provide no assurances that our method of allocation, in the past or in the future, is or will

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be the most accurate or appropriate method of allocation for these expenses. Other methods could result in a higher allocation of selling, general and administrative expense to us, which would reduce our net income.

    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 and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Variance		Percent Change		Nine Months Ended September 30,				Variance		Percent Change
	2021		2020						2021		2020
	(In thousands)								(In thousands)
Conflicts Committee approved reimbursement amount	$	3,597	$	4,103	$	(506)	(12)	%	$	10,790	$	12,364	$	(1,574)	(13)	%

    The amounts reflected above represent our allocable share of such expenses. The Conflicts Committee will review and approve future adjustments in the reimbursement amount for indirect expenses, if any, annually.

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Liquidity and Capital Resources

General

    Our primary sources of liquidity to meet operating expenses, service our indebtedness, fund capital expenditures and pay distributions to our unitholders have historically been cash flows generated by our operations, borrowings under our revolving credit facility and access to debt and equity capital markets, both public and private. Set forth below is a description of our cash flows for the periods indicated.

Cash Flows - Nine Months Ended September 30, 2021 Compared to Nine Months Ended September 30, 2020

    The following table details the cash flow changes between the nine months ended September 30, 2021 and 2020:

	Nine Months Ended September 30,				Variance		Percent Change
	2021		2020
	(In thousands)
Net cash provided by (used in):
Operating activities	$	(12,406)	$	19,150	$	(31,556)	(165)	%
Investing activities	(13,629)		(12,747)		(882)		(7)	%
Financing activities	27,860		(7,397)		35,257		477	%
Net increase (decrease) in cash and cash equivalents	$	1,825	$	(994)	$	2,819	284	%

    Net cash provided by operating activities. The decrease in net cash provided by operating activities for the nine months ended September 30, 2021 includes a reduction in operating results of $6.8 million and an unfavorable variance in working capital of $30.4 million, primarily related to the season build of butane inventory. Offsetting this decrease was a $4.7 million increase in other non-cash charges and a favorable variance in other non-current assets and liabilities of $0.9 million.

    Net cash used in investing activities. Net cash used in investing activities for the nine months ended September 30, 2021 increased $0.9 million. Net proceeds from the sale of property, plant and equipment decreased $4.2 million and proceeds received from the involuntary conversion of property, plant and equipment decreased $6.9 million. A reduction in cash used of $10.2 million resulted from higher payments for capital expenditures and plant turnaround costs in 2020.

    Net cash used in financing activities. Net cash used in financing activities for the nine months ended September 30, 2021 decreased primarily as a result of a $26.3 million reduction in net payments of long-term borrowings. Further, cash distributions paid decreased $4.5 million, costs associated with the credit facility decreased $3.0 million, and payments of finance lease obligations decreased $1.4 million.

Total Contractual Obligations

A summary of our total contractual cash obligations as of September 30, 2021, is as follows: 

	Payments due by period
Type of Obligation	Total Obligation		Less than One Year		1-3 Years		3-5 Years		Due Thereafter
Revolving credit facility	$	208,500	$	—	$	208,500	$	—	$	—
11.5% senior secured notes, due 2025	291,970		—		—		291,970		—
10.0% senior secured notes, due 2024	53,750		—		53,750		—		—
Throughput commitment	4,679		4,679		—		—		—
Operating leases	26,660		7,801		8,025		3,714		7,120
Finance lease obligations	348		240		108		—		—
Interest payable on finance lease obligations	13		12		1		—		—
Interest payable on fixed long-term debt obligations	127,710		38,952		74,768		13,990		—
Total contractual cash obligations	$	713,630	$	51,684	$	345,152	$	309,674	$	7,120

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The interest payable under our credit facility is not reflected in the above table because such amounts depend on the  outstanding balances and interest rates, which vary from time to time. 

Letters of Credit.  At September 30, 2021, we had outstanding irrevocable letters of credit in the amount of $28.2 million, which were issued under our revolving credit facility.

Off Balance Sheet Arrangements.  We do not have any off-balance sheet financing arrangements.

Description of Our Indebtedness

Revolving Credit Facility

At September 30, 2021, we maintained a $275.0 million revolving credit facility that matures on August 31, 2023. As of September 30, 2021, we had $208.5 million outstanding under the revolving credit facility and $28.2 million of outstanding irrevocable letters of credit, leaving a maximum available amount to be borrowed under our credit facility for future revolving credit borrowings and letters of credit of $38.3 million. After giving effect to our then current borrowings, letters of credit, and the financial covenants contained in our revolving credit facility, we had the ability to borrow approximately $26.0 million in additional amounts thereunder as of September 30, 2021.

The revolving credit facility is used for ongoing working capital needs and general partnership purposes, and to finance permitted investments, acquisitions and capital expenditures.  During the nine months ended September 30, 2021, the level of outstanding draws on our credit facility has ranged from a low of $148.0 million to a high of $228.0 million.

The credit facility is guaranteed by substantially all of our subsidiaries. Obligations under the credit facility are secured by first priority liens on substantially all of our assets and those of the guarantors, including, without limitation, inventory, accounts receivable, bank accounts, marine vessels, equipment, fixed assets and the interests in our subsidiaries.

    We may prepay all amounts outstanding under the credit facility at any time without premium or penalty (other than customary LIBOR breakage costs), subject to certain notice requirements. The credit facility requires mandatory prepayments of amounts outstanding thereunder with excess cash that exceeds $25.0 million and the net proceeds of certain asset sales, equity issuances and debt incurrences.

    Indebtedness under the credit facility bears interest at our option at the Eurodollar Rate (LIBOR), with a floor for LIBOR of 1%, plus an applicable margin, or the Base Rate (the highest of the Federal Funds Rate plus 0.50%, the 30-day Eurodollar Rate plus 1.0%, or the administrative agent’s prime rate) plus an applicable margin. We pay a per annum fee on all letters of credit issued under the credit facility, and we pay a commitment fee per annum on the unused revolving credit commitments under the credit facility. The letter of credit fee, the commitment fee and the applicable margins for our interest rate vary quarterly based on our Total Leverage Ratio (as defined in the credit facility, being generally computed as the ratio of total funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) and are as follows as of September 30, 2021:

Leverage Ratio	Base Rate Loans		Eurodollar Rate Loans		Letters of Credit
Less than 3.00 to 1.00	1.75	%	2.75	%	2.75	%
Greater than or equal to 3.00 to 1.00 and less than 3.50 to 1.00	2.00	%	3.00	%	3.00	%
Greater than or equal to 3.50 to 1.00 and less than 4.00 to 1.00	2.25	%	3.25	%	3.25	%
Greater than or equal to 4.00 to 1.00 and less than 4.50 to 1.00	2.50	%	3.50	%	3.50	%
Greater than or equal to 4.50 to 1.00 and less than 5.00 to 1.00	2.75	%	3.75	%	3.75	%
Greater than or equal to 5.00 to 1.00	3.00	%	4.00	%	4.00	%

    The applicable margin for LIBOR borrowings at September 30, 2021 is 4.00%, with a 1% floor for LIBOR.

    The credit facility includes financial covenants that are tested on a quarterly basis, based on the rolling four quarter period that ends on the last day of each fiscal quarter. On July 16, 2021, the credit facility was amended to, among other things:

•require the Operating Partnership to maintain a minimum Interest Coverage Ratio (as defined in the Credit Agreement) of 1.75:1.0 with respect to the fiscal quarter ended in September of 2021, 1.75:1.0 with respect to the fiscal quarter

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ending in December of 2021, 1.85:1.0 with respect to the fiscal quarters ending in March and June of 2022, and 2.0:1.0 with respect to 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 5.75:1.0 with respect to the fiscal quarter ended in September of 2021, 5.25:1.0 with respect to the fiscal quarter ending in December of 2021, and 5.0:1.0 with respect to each fiscal quarter thereafter; and

•require the Operating Partnership to maintain a maximum First Lien Leverage Ratio (as defined in the Credit Agreement) of not more than 2.25:1.0 with respect to each fiscal quarter ending in 2021, 1.75:1.0 with respect to each fiscal quarter ending in 2022, and 1.5:1.0 with respect to each fiscal quarter thereafter.

    In addition, the credit facility contains various covenants, which, among other things, limit our and our subsidiaries’ ability to: (i) grant or assume liens; (ii) make investments (including investments in our joint ventures) and acquisitions; (iii) enter into certain types of hedging agreements; (iv) incur or assume indebtedness; (v) sell, transfer, assign or convey assets; (vi) repurchase our equity, make distributions (including a limit on our ability to make quarterly distributions to unitholders in excess of $0.005 per unit unless our Total Leverage Ratio (as defined in the credit facility) is below 3.75:1:00) and certain other restricted payments; (vii) change the nature of our business; (viii) engage in transactions with affiliates; (ix) enter into certain burdensome agreements; (x) make certain amendments to the Omnibus Agreement and our material agreements; and (xi) permit our joint ventures to incur indebtedness or grant certain liens.

    The credit facility contains customary events of default, including, without limitation: (i) failure to pay any principal, interest, fees, expenses or other amounts when due; (ii) failure to meet the quarterly financial covenants; (iii) failure to observe any other agreement, obligation, or covenant in the credit facility or any related loan document, subject to cure periods for certain failures; (iv) the failure of any representation or warranty to be materially true and correct when made; (v) our, or any of our subsidiaries’ default under other indebtedness that exceeds a threshold amount; (vi) bankruptcy or other insolvency events involving us or any of our subsidiaries; (vii) judgments against us or any of our subsidiaries, in excess of a threshold amount; (viii) certain ERISA events involving us or any of our subsidiaries, in excess of a threshold amount; (ix) a change in control (as defined in the credit facility); and (x) the invalidity of any of the loan documents or the failure of any of the collateral documents to create a lien on the collateral.

    The credit facility also contains certain default provisions relating to Martin Resource Management Corporation. If Martin Resource Management Corporation no longer controls our general partner, the lenders under the credit facility may declare all amounts outstanding thereunder immediately due and payable. In addition, an event of default by Martin Resource Management Corporation under its credit facility could independently result in an event of default under our credit facility if it is deemed to have a material adverse effect on us.

    If an event of default relating to bankruptcy or other insolvency events occurs with respect to us or any of our subsidiaries, all indebtedness under our credit facility will immediately become due and payable. If any other event of default exists under our credit facility, the lenders may terminate their commitments to lend us money, accelerate the maturity of the indebtedness outstanding under the credit facility and exercise other rights and remedies. In addition, if any event of default exists under our credit facility, the lenders may commence foreclosure or other actions against the collateral.

Senior Secured Notes due 2025 and 2024

For a description of our 11.50% senior secured second lien notes due 2025 and 10.00% senior secured 1.5 lien notes due 2024, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Description of Our Long-Term Debt" in our Annual Report on Form 10-K for the year ended December 31, 2020.

    Capital Resources and Liquidity

    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 revolving credit facility.

    On September 30, 2021, we had cash and cash equivalents of $6.8 million and available borrowing capacity of $38.3 million under our revolving credit facility with $208.5 million of borrowings outstanding.  After giving effect to our current borrowings, outstanding letters of credit and the financial covenants contained in our revolving credit facility, we had the ability to borrow approximately $26.0 million in additional amounts thereunder as of September 30, 2021. Our revolving credit facility matures on August 31, 2023.

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    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 revolving credit facility and access to the debt and equity capital markets.  Our ability to generate cash from operations will depend upon our future operating performance, which is subject to certain risks.   For a discussion of such risks, please read "Item 1A. Risk Factors" of our Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.  In addition, due to the covenants in our revolving 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 September 30, 2021 and expect to be in compliance for the next twelve months.

    Interest Rate Risk

We are subject to interest rate risk on our credit facility due to the variable interest rate and may enter into interest rate swaps to reduce this variable rate risk.

Seasonality

    A substantial portion of our revenues is dependent on sales prices of products, particularly NGLs and fertilizers, which fluctuate in part based on winter and spring weather conditions. The demand for NGLs is strongest during the winter heating season and refinery blending season. The demand for fertilizers is strongest during the early spring planting season. However, our Terminalling and Storage and Transportation business segments and the molten sulfur business are typically not impacted by seasonal fluctuations and a significant portion of our net income is derived from our Terminalling and Storage, Sulfur Services and Transportation business segments. Further, extraordinary weather events, such as hurricanes, have in the past, and could in the future, impact our Terminalling and Storage, Sulfur Services, and Transportation business segments.

Impact of Inflation

    Inflation did not have a material impact on our results of operations for the nine months ended September 30, 2021 or 2020. Inflation may increase the cost to acquire or replace property, plant and equipment. It may also increase the costs of labor and supplies.  In the future, increasing energy prices could adversely affect our results of operations. Diesel fuel, natural gas, chemicals and other supplies are recorded in operating expenses.  An increase in price of these products would increase our operating expenses which could adversely affect net income. We cannot provide assurance that we will be able to pass along increased operating expenses to our customers.

Environmental Matters

    Our operations are subject to environmental laws and regulations adopted by various governmental authorities in the jurisdictions in which these operations are conducted. We incurred no material environmental costs, liabilities or expenditures to mitigate or eliminate environmental contamination during the nine months ended September 30, 2021 or 2020.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Partnership is exposed to commodity risk and interest rate risk in its normal business activities. The following disclosures about market risk provide an update to, and should be read in conjunction with, “Item 7A. Quantitative and Qualitative Disclosures about Market Risk” set forth in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

Commodity Risk. The Partnership from time to time uses derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price.  We have established a hedging policy and monitor and manage the commodity market risk associated with potential commodity risk exposure.  In addition, we focus on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction.

We have entered into hedging transactions as of September 30, 2021 to protect a portion of our commodity price risk exposure. These hedging arrangements are in the form of swaps and options for NGLs. We have instruments totaling a gross notional quantity of 400,000 barrels settling during the period from October 31, 2021 through December 31, 2021. These instruments settle against the applicable pricing source for each grade and location. These instruments are recorded on our Consolidated and Condensed Balance Sheets at September 30, 2021 in "Fair value of derivatives" as a current liability of $5.1 million. Based on the current net notional volume hedged as of September 30, 2021, a $0.10 change in the expected settlement price of these contracts would result in an impact to our net income of approximately $1.7 million.

Our hedging strategy is designed to protect us from excessive pricing volatility. However, since we do not typically hedge 100% of our exposure, abnormal price volatility in any of these commodity markets could influence operating income.

For derivatives designated in cash flow hedging relationships, we record the gains and losses from the use of these instruments in accumulated other comprehensive income (loss) on the consolidated balance sheets and subsequently recognize the accumulated gains and losses into cost of products sold in the same period when the associated underlying transactions occur. At September 30, 2021, accumulated other comprehensive income (loss) included $6.0 million in unrealized losses for these derivative instruments. All other commodity derivatives are marked-to-market and recognized into cost of products sold with the offset recognized as an asset or accrued liability. See Note 8 of the consolidated financial statements for further information on our outstanding derivatives.    

Interest Rate Risk. We are exposed to changes in interest rates as a result of our credit facility, which had a weighted-average interest rate of 5.00% as of September 30, 2021.  Based on the amount of unhedged floating rate debt owed by us on September 30, 2021, the impact of a 100 basis point increase in interest rates on this amount of debt would result in an increase in interest expense and a corresponding decrease in net income of approximately $2.1 million annually.

We are not exposed to changes in interest rates with respect to our 2024 Notes and 2025 Notes as these obligations are fixed rate.  Based on the quoted prices for identical liabilities in markets that are not active at September 30, 2021, the estimated fair value of the 2024 Notes and 2025 Notes was $55.1 million and $302.8 million, respectively. Market risk is estimated as the potential decrease in fair value of our long-term debt resulting from a hypothetical increase of a 100 basis point increase in interest rates. Such an increase in interest rates at September 30, 2021, would result in a $0.04 million decrease in the fair value of our 2024 Notes and a $8.4 million decrease in the fair value of our 2025 Notes.

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Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures. In accordance with Rules 13a-15 and 15d-15 of the Exchange Act, we, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer of our general partner, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer of our general partner concluded that our disclosure controls and procedures were effective, as of the end of the period covered by this report, to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

    There were no changes in our internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

    From time to time, we are subject to certain legal proceedings, claims and disputes that arise in the ordinary course of our business. Although we cannot predict the outcomes of these legal proceedings, we do not believe these actions, in the aggregate, will have a material adverse impact on our financial position, results of operations or liquidity. Information regarding legal proceedings is set forth in Note 13 in Part I of this Form 10-Q.

Item 1A. Risk Factors

    There have been no material changes to the Partnership's risk factors since our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

Item 6. Exhibits

The information required by this Item 6 is set forth in the Index to Exhibits accompanying this quarterly report and is incorporated herein by reference.

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INDEX TO EXHIBITS

Exhibit Number	Exhibit Name
3.1	Certificate of Limited Partnership of Martin Midstream Partners L.P. (the "Partnership"), dated June 21, 2002 (filed as Exhibit 3.1 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.2	Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated November 25, 2009 (filed as Exhibit 10.1 to the Partnership's Amendment to Current Report on Form 8-K/A (SEC File No. 000-50056), filed January 19, 2010, and incorporated herein by reference).
3.3	Amendment No. 2 to the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated January 31, 2011 (filed as Exhibit 3.1 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed February 1, 2011, and incorporated herein by reference).
3.4	Amendment No. 3 to the Second Amended and Restated Agreement of Limited Partnership of the Partnership dated October 2, 2012 (filed as Exhibit 10.5 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed October 9, 2012, and incorporated herein by reference).
3.5	Certificate of Limited Partnership of Martin Operating Partnership L.P. (the "Operating Partnership"), dated June 21, 2002 (filed as Exhibit 3.3 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.6	Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated November 6, 2002 (filed as Exhibit 3.2 to the Partnership's Current Report on Form 8-K (SEC File No. 000-50056), filed November 19, 2002, and incorporated herein by reference).
3.7	Certificate of Formation of Martin Midstream GP LLC (the "General Partner"), dated June 21, 2002 (filed as Exhibit 3.5 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.8	Amended and Restated Limited Liability Company Agreement of the General Partner, dated August 30, 2013 (filed as Exhibit 3.1 to the Partnership's Current Report on Form 8-K (Reg. No. 000-50056), filed September 3, 2013, and incorporated herein by reference).
3.9	Certificate of Formation of Martin Operating GP LLC (the "Operating General Partner"), dated June 21, 2002 (filed as Exhibit 3.7 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.10	Limited Liability Company Agreement of the Operating General Partner, dated June 21, 2002 (filed as Exhibit 3.8 to the Partnership's Registration Statement on Form S-1 (Reg. No. 333-91706), filed July 1, 2002, and incorporated herein by reference).
3.11	Certificate of Formation of Arcadia Gas Storage, LLC, dated June 26, 2006 (filed as Exhibit 3.11 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.12	Company Agreement of Arcadia Gas Storage, LLC, dated December 27, 2006 (filed as Exhibit 3.12 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.13	Amendment to the Company Agreement of Arcadia Gas Storage, LLC, dated September 5, 2014 (filed as Exhibit 3.13 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.14	Certificate of Formation of Cadeville Gas Storage LLC, dated May 23, 2008 (filed as Exhibit 3.14 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.15	Limited Liability Company Agreement of Cadeville Gas Storage LLC, dated May 23, 2008 (filed as Exhibit 3.15 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.16	First Amendment to the Limited Liability Company Agreement of Cadeville Gas Storage LLC, dated April 16, 2012 (filed as Exhibit 3.16 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.17	Second Amendment to the Limited Liability Company Agreement of Cadeville Gas Storage LLC, dated September 5, 2014 (filed as Exhibit 3.17 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.18	Certificate of Formation of Monroe Gas Storage Company, LLC, dated June 14, 2006 (filed as Exhibit 3.18 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).

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3.19	Amended and Restated Limited Liability Company Agreement of Monroe Gas Storage Company, LLC, dated May 31, 2011 (filed as Exhibit 3.19 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.20	First Amendment to the Amended and Restated Limited Liability Company Agreement of Monroe Gas Storage Company, LLC, dated September 5, 2014 (filed as Exhibit 3.20 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.21	Certificate of Formation of Perryville Gas Storage LLC, dated May 23, 2008.(filed as Exhibit 3.21 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.22	Limited Liability Company Agreement of Perryville Gas Storage LLC, dated June 16, 2008 (filed as Exhibit 3.22 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.23	First Amendment to the Limited Liability Company Agreement of Perryville Gas Storage LLC, dated April 14, 2010 (filed as Exhibit 3.23 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.24	Second Amendment to the Limited Liability Company Agreement of Perryville Gas Storage LLC, dated September 5, 2014 (filed as Exhibit 3.24 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.25	Certificate of Formation of Cardinal Gas Storage Partners LLC, dated April 2, 2008 (filed as Exhibit 3.25 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.26	Third Amended and Restated Limited Liability Company Agreement of Cardinal Gas Storage Partners LLC (F/K/A Redbird Gas Storage LLC) dated October 27, 2014 (filed as Exhibit 3.26 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
3.27	Certificate of Formation of Redbird Gas Storage LLC, dated May 24, 2011 (filed as Exhibit 3.27 to the Partnership's Annual Report on Form 10-K (SEC File No. 000-50056), filed March 2, 2015, and incorporation herein by reference).
3.28	Second Amended and Restated LLC Agreement of Redbird Gas Storage LLC, dated as of October 2, 2012. (filed as Exhibit 10.6 to the Partnership's Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed November 5, 2012, and incorporated herein by reference).
3.29	Certificate of Merger of Cardinal Gas Storage Partners LLC with and into Redbird Gas Storage LLC, dated October 27, 2014 (filed as Exhibit 3.27 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed October 29, 2014, and incorporated herein by reference).
10.1	Martin Midstream Partners L.P. 2021 Phantom Unit Plan, effective as of July 21, 2021 (filed as Exhibit 10.1 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed July 26, 2021, and incorporated herein by reference).
10.2	Form of Phantom Unit Award Agreement for the Martin Midstream Partners L.P. 2021 Phantom Unit Plan (filed as Exhibit 10.2 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed July 26, 2021, and incorporated herein by reference).
10.3	Form of Phantom Unit Appreciation Right Award Agreement for the Martin Midstream Partners L.P. 2021 Phantom Unit Plan (filed as Exhibit 10.3 to the Partnership’s Quarterly Report on Form 10-Q (SEC File No. 000-50056), filed July 26, 2021, and incorporated herein by reference).
10.4	Twelfth Amendment to Third Amended and Restated Credit Agreement, dated as of July 16, 2021, by and among Martin Operating Partnership L.P., as borrower, Martin Midstream Partners L.P., the other Loan Parties party thereto, the Lenders party thereto, and Royal Bank of Canada, as administrative agent and collateral agent for the Lenders and as an L/C Issuer and a Lender (filed as Exhibit 10.1 to the Partnership’s Current Report on Form 8-K (SEC File No. 000-50056), filed July 22, 2021, and incorporated herein by reference).
31.1*	Certifications of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be "filed."
32.2*	Certification of Chief Financial Officer pursuant to 18 U.S.C., Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  Pursuant to SEC Release 34-47551, this Exhibit is furnished to the SEC and shall not be deemed to be "filed."

61

101

Inline Interactive Data: the following financial information from Martin Midstream Partners L.P.’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2021, formatted in Extensible Business Reporting Language: (1) the Consolidated and Condensed Balance Sheets; (2) the Consolidated and Condensed Statements of Income; (3) the Consolidated and Condensed Statements of Comprehensive Income (4) the Consolidated and Condensed Statements of Cash Flows; (5) the Consolidated and Condensed Statements of Capital; and (6) the Notes to Consolidated and Condensed Financial Statements.

104

Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document (contained in Exhibit 101).

* Filed or furnished herewith

** Schedules omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the Securities and Exchange Commission upon request.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

	Martin Midstream Partners L.P.
	By:	Martin Midstream GP LLC
		Its General Partner
October 25, 2021	By:	/s/ Sharon L. Taylor
		Sharon L. Taylor
		Vice President and Chief Financial Officer

62

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to 17 CFR 240.13a-14(a)/15d-14(a)

(Section 302 of the Sarbanes-Oxley Act of 2002)

I, Robert D. Bondurant, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Martin Midstream Partners L.P.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c.  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

October 25, 2021

/s/ Robert D. Bondurant

Robert D. Bondurant, President and

Chief Executive Officer of

Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to 17 CFR 240.13a-14(a)/15d-14(a)

(Section 302 of the Sarbanes-Oxley Act of 2002)

I, Sharon L. Taylor, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Martin Midstream Partners L.P.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

c.  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

October 25, 2021

/s/ Sharon L. Taylor

Sharon L. Taylor, Vice President and Chief Financial Officer of

Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C.  SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Quarterly Report of Martin Midstream Partners L.P., a Delaware limited partnership (the “Partnership”), on Form 10-Q for the quarter ended September 30, 2021, as filed with the Securities and Exchange Commission (the “Report”), I, Robert D. Bondurant, Chief Executive Officer of Martin Midstream GP LLC, the general partner of the Partnership, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that to my knowledge:

(1)          the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)          the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Robert D. Bondurant

Robert D. Bondurant, President and

Chief Executive Officer

of Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

October 25, 2021

*A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C.  SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Quarterly Report of Martin Midstream Partners L.P., a Delaware limited partnership (the “Partnership”), on Form 10-Q for the quarter ended September 30, 2021, as filed with the Securities and Exchange Commission (the “Report”), I, Sharon L. Taylor, Chief Financial Officer of Martin Midstream GP LLC, the general partner of the Partnership, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that to my knowledge:

(1)           the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2)           the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

/s/ Sharon L. Taylor

Sharon L. Taylor, Vice President and

Chief Financial Officer

of Martin Midstream GP LLC,

the General Partner of Martin Midstream Partners L.P.

October 25, 2021

*A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 25, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	000-50056
Entity Registrant Name	MARTIN MIDSTREAM PARTNERS L.P.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	05-0527861
Entity Address, Address Line One	4200 Stone Road
Entity Address, City or Town	Kilgore
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75662
City Area Code	903
Local Phone Number	983-6200
Title of each class	Common Units representing limited partnership interests
Trading Symbol(s)	MMLP
Name of each exchange on which registered	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		38,802,750
Entity Central Index Key	0001176334
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

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CONSOLIDATED AND CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets
Cash	$ 6,783	$ 4,958
Accounts and other receivables, less allowance for doubtful accounts of $272 and $261, respectively	75,676	52,748
Inventories	98,139	54,122
Due from affiliates	10,133	14,807
Other current assets	10,441	8,991
Total current assets	201,172	135,626
Property, plant and equipment, at cost	894,767	889,108
Accumulated depreciation	(543,309)	(509,237)
Property, plant and equipment, net	351,458	379,871
Goodwill	16,823	16,823
Right-of-use assets	21,267	22,260
Deferred income taxes, net	20,834	22,253
Other assets, net	2,684	2,805
Total assets	614,238	579,638
Liabilities and Partners’ Capital (Deficit)
Current installments of long-term debt and finance lease obligations	240	31,497
Trade and other accounts payable	73,273	51,900
Product exchange payables	1,387	373
Due to affiliates	5,469	435
Income taxes payable	401	556
Fair value of derivatives	5,049	207
Other accrued liabilities	21,696	34,407
Total current liabilities	107,515	119,375
Long-term debt, net	547,090	484,597
Finance lease obligations	108	289
Operating lease liabilities	14,960	15,181
Other long-term obligations	8,721	7,067
Total liabilities	678,394	626,509
Commitments and contingencies
Partners’ capital (deficit)	(58,157)	(46,871)
Accumulated other comprehensive loss	(5,999)	0
Total partners’ capital (deficit)	(64,156)	(46,871)
Total liabilities and partners' capital (deficit)	$ 614,238	$ 579,638

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CONSOLIDATED AND CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 272	$ 261

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CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Revenues		$ 211,258	$ 152,533	$ 596,525	$ 492,054
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		129,570	77,345	350,414	249,445
Expenses:
Operating expenses	[1]	50,098	43,105	142,045	138,589
Selling, general and administrative	[1]	9,739	10,339	29,308	30,659
Depreciation and amortization		13,945	15,276	42,862	45,858
Total costs and expenses		203,352	146,065	564,629	464,551
Other operating income (loss), net		61	23	(610)	2,548
Gain on involuntary conversion of property, plant and equipment		186	4,522	186	4,522
Operating income		8,153	11,013	31,472	34,573
Other income (expense):
Interest expense, net		(14,110)	(12,943)	(40,372)	(32,245)
Gain on retirement of senior unsecured notes		0	0	0	3,484
Loss on exchange of senior unsecured notes		0	(8,516)	0	(8,516)
Other, net		0	0	(1)	7
Total other expense		(14,110)	(21,459)	(40,373)	(37,270)
Net loss before taxes		(5,957)	(10,446)	(8,901)	(2,697)
Income tax expense		(954)	(373)	(2,111)	(1,510)
Net loss		(6,911)	(10,819)	(11,012)	(4,207)
Less general partner's interest in net loss		138	216	220	84
Less loss allocable to unvested restricted units		20	53	30	8
Limited partners' interest in net loss		$ (6,753)	$ (10,550)	$ (10,762)	$ (4,115)
Net loss per unit attributable to limited partners - basic (in dollars per share)		$ (0.17)	$ (0.27)	$ (0.28)	$ (0.11)
Net loss per unit attributable to limited partners - diluted (in dollars per share)		$ (0.17)	$ (0.27)	$ (0.28)	$ (0.11)
Weighted average limited partner units - basic (in shares)		38,687,874	38,661,852	38,689,434	38,654,891
Weighted average limited partner units - diluted (in shares)		38,687,874	38,661,852	38,689,434	38,654,891
Terminalling and storage
Revenues:
Revenues	[1]	$ 18,980	$ 20,706	$ 56,060	$ 61,088
Transportation
Revenues:
Revenues	[1]	39,079	31,938	103,820	102,364
Sulfur services
Revenues:
Revenues		2,950	2,915	8,849	8,744
Product sales
Revenues:
Revenues	[1]	150,249	96,974	427,796	319,858
Natural gas liquids
Revenues:
Revenues	[1]	91,764	52,350	257,081	164,860
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	85,137	44,908	225,862	139,036
Sulfur services
Revenues:
Revenues	[1]	27,887	18,965	95,109	74,879
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	20,266	13,313	65,657	46,167
Terminalling and storage
Revenues:
Revenues	[1]	30,598	25,659	75,606	80,119
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	$ 24,167	$ 19,124	$ 58,895	$ 64,242

[1] Related Party Transactions Included Above Three Months EndedNine Months EndedSeptember 30,September 30,2021202020212020Revenues:*    Terminalling and storage$15,866 $15,902 $46,741 $47,718 Transportation5,564 5,514 14,463 16,801 Product Sales68 69 253 199 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services2,441 2,512 7,379 7,833 Terminalling and storage7,259 4,303 18,863 14,329 Expenses:Operating expenses20,088 18,915 58,046 60,126 Selling, general and administrative7,659 8,356 23,624 24,723 

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CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS - Related Party Transactions (Parentheticals) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Revenues		$ 211,258	$ 152,533	$ 596,525	$ 492,054
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		129,570	77,345	350,414	249,445
Expenses:
Operating expenses		20,088	18,915	58,046	60,126
Selling, general and administrative		7,659	8,356	23,624	24,723
Terminalling and storage
Revenues:
Revenues	[1]	18,980	20,706	56,060	61,088
Transportation
Revenues:
Revenues	[1]	39,079	31,938	103,820	102,364
Product Sales
Revenues:
Revenues	[1]	150,249	96,974	427,796	319,858
Sulfur services
Revenues:
Revenues	[1]	27,887	18,965	95,109	74,879
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	20,266	13,313	65,657	46,167
Terminalling and storage
Revenues:
Revenues	[1]	30,598	25,659	75,606	80,119
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold	[1]	24,167	19,124	58,895	64,242
Related Party
Expenses:
Operating expenses		20,088	18,915	58,046	60,126
Related Party | Terminalling and storage
Revenues:
Revenues		15,866	15,902	46,741	47,718
Expenses:
Operating expenses		4,284	4,300	12,513	13,292
Related Party | Transportation
Revenues:
Revenues		5,564	5,514	14,463	16,801
Expenses:
Operating expenses		13,949	13,009	40,652	41,950
Related Party | Product Sales
Revenues:
Revenues		68	69	253	199
Related Party | Sulfur services
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		2,441	2,512	7,379	7,833
Expenses:
Operating expenses		1,321	1,120	3,370	3,403
Related Party | Terminalling and storage
Cost of products sold: (excluding depreciation and amortization)
Cost of products sold		$ 7,259	$ 4,303	$ 18,863	$ 14,329

[1] Related Party Transactions Included Above Three Months EndedNine Months EndedSeptember 30,September 30,2021202020212020Revenues:*    Terminalling and storage$15,866 $15,902 $46,741 $47,718 Transportation5,564 5,514 14,463 16,801 Product Sales68 69 253 199 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services2,441 2,512 7,379 7,833 Terminalling and storage7,259 4,303 18,863 14,329 Expenses:Operating expenses20,088 18,915 58,046 60,126 Selling, general and administrative7,659 8,356 23,624 24,723 

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CONSOLIDATED AND CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,911)	$ (10,819)	$ (11,012)	$ (4,207)
Changes in fair values of commodity cash flow hedges	(5,999)	0	(5,999)	0
Total comprehensive income	$ (12,910)	$ (10,819)	$ (17,011)	$ (4,207)

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CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL (DEFICIT) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Increase (Decrease) in Partners' Capital
Beginning balance			$ (46,871)	$ (36,196)
Net loss	$ (6,911)	$ (10,819)	(11,012)	(4,207)
Cash distributions			(593)	(5,121)
Unit-based compensation			336	1,070
Changes in fair values of commodity cash flow hedges	(5,999)	0	(5,999)	0
Purchase of treasury units			(17)	(9)
Ending balance	(64,156)	(44,463)	(64,156)	(44,463)
Common Limited | Common
Increase (Decrease) in Partners' Capital
Beginning balance			$ (48,776)	$ (38,342)
Beginning balance (in shares)			38,851,174	38,863,389
Net loss			$ (10,792)	$ (4,123)
Issuance of restricted units (in shares)			42,168	81,000
Forfeiture of restricted units (in shares)			(83,436)	(84,134)
Cash distributions			$ (581)	$ (5,019)
Unit-based compensation			336	1,070
Purchase of treasury units			$ (17)	$ (9)
Purchase of treasury units (in shares)			(7,156)	(7,748)
Ending balance	$ (59,830)	$ (46,423)	$ (59,830)	$ (46,423)
Ending balance (in shares)	38,802,750	38,852,507	38,802,750	38,852,507
General Partner Amount
Increase (Decrease) in Partners' Capital
Beginning balance			$ 1,905	$ 2,146
Net loss			(220)	(84)
Cash distributions			(12)	(102)
Ending balance	$ 1,673	$ 1,960	1,673	1,960
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners' Capital
Beginning balance			0	0
Changes in fair values of commodity cash flow hedges			(5,999)
Ending balance	$ (5,999)	$ 0	$ (5,999)	$ 0

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CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (11,012)	$ (4,207)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	42,862	45,858
Amortization of deferred debt issuance costs	2,585	2,674
Amortization of premium on notes payable	0	(191)
Deferred income tax expense	1,419	1,202
Loss on sale of property, plant and equipment, net	610	153
Gain on involuntary conversion of property, plant and equipment	(186)	(4,522)
Non-cash impact related to exchange of senior unsecured notes	0	(749)
Gain on retirement of senior unsecured notes	0	(3,484)
Derivative (income) loss	1,825	(815)
Net cash received (paid) for commodity derivatives	(2,982)	539
Non cash unit-based compensation	336	1,070
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables	(22,924)	30,012
Product exchange receivables	0	(212)
Inventories	(44,353)	(15,184)
Due from affiliates	4,674	(1,103)
Other current assets	(1,912)	(6,130)
Trade and other accounts payable	21,092	(17,117)
Product exchange payables	1,014	(1,278)
Due to affiliates	5,034	(1,003)
Income taxes payable	(155)	(137)
Other accrued liabilities	(10,536)	(5,534)
Change in other non-current assets and liabilities	203	(692)
Net cash provided by (used in) operating activities	(12,406)	19,150
Cash flows from investing activities:
Payments for property, plant and equipment	(11,449)	(23,705)
Payments for plant turnaround costs	(2,679)	(637)
Proceeds from involuntary conversion of property, plant and equipment	274	7,203
Proceeds from sale of property, plant and equipment	225	4,392
Net cash used in investing activities	(13,629)	(12,747)
Cash flows from financing activities:
Payments of long-term debt	(211,790)	(253,637)
Payments under finance lease obligations	(2,648)	(4,021)
Proceeds from long-term debt	243,500	259,019
Purchase of treasury units	(17)	(9)
Payment of debt issuance costs	(592)	(3,628)
Cash distributions paid	(593)	(5,121)
Net cash provided by (used in) financing activities	27,860	(7,397)
Net increase (decrease) in cash	1,825	(994)
Cash at beginning of period	4,958	2,856
Cash at end of period	6,783	1,862
Non-cash additions to property, plant and equipment	$ 749	$ 1,432

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Nature of Operations and Basis of Presentation

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Nature of Operations and Basis of Presentation

NATURE OF OPERATIONS AND BASIS OF PRESENTATION

Martin Midstream Partners L.P. (the "Partnership") is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States ("U.S.") Gulf Coast region. Its four primary business lines include:   (1) terminalling, processing, storage and packaging services for petroleum products and by-products including the refining of naphthenic crude oil; (2) land and marine transportation services for petroleum products and by-products, chemicals, and specialty products; (3) sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and (4) natural gas liquids marketing, distribution, and transportation services.

The Partnership’s unaudited consolidated and condensed financial statements have been prepared in accordance with the requirements of Form 10-Q and U.S. Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial reporting. Accordingly, these financial statements have been condensed and do not include all of the information and footnotes required by U.S. GAAP for annual audited financial statements of the type contained in the Partnership’s annual reports on Form 10-K. 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 financial position, results of operations, and cash flows for the periods shown have been made. All such adjustments are of a normal recurring nature. Results for such interim periods are not necessarily indicative of the results of operations for the full year. These financial statements should be read in conjunction with the Partnership’s audited consolidated financial statements and notes thereto included in the Partnership’s annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021.

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 and condensed financial statements in conformity with U.S. GAAP.  Actual results could differ from those estimates.

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New Accounting Pronouncements	9 Months Ended
	Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	NEW ACCOUNTING PRONOUNCEMENTSOn January 1, 2021, the Partnership adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2019-12, Income Taxes (Accounting Standards Codification ("ASC") Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to general principles in ASC 740 and clarifies and amends existing guidance within U.S. GAAP. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements.

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Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

    The following table disaggregates our revenue by major source:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Terminalling and storage segment
Lubricant product sales	$	30,598	$	25,659	$	75,606	$	80,119
Throughput and storage	18,980		20,706		56,060		61,088
	$	49,578	$	46,365	$	131,666	$	141,207
Natural gas liquids segment
Natural gas liquids product sales	$	91,764	$	52,350	$	257,081	$	164,860
	$	91,764	$	52,350	$	257,081	$	164,860
Sulfur services segment
Sulfur product sales	$	7,768	$	6,161	$	22,222	$	19,010
Fertilizer product sales	20,119		12,804		72,887		55,869
Sulfur services	2,950		2,915		8,849		8,744
	$	30,837	$	21,880	$	103,958	$	83,623
Transportation segment
Land transportation	$	30,273	$	21,879	$	80,715	$	65,986
Inland transportation	7,465		9,294		20,822		33,611
Offshore transportation	1,341		765		2,283		2,767
	$	39,079	$	31,938	$	103,820	$	102,364

    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.

    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 the Partnership’s tolling agreement, revenue is recognized based on the contracted monthly reservation fee and throughput volumes moved through the facility.  When lubricants and drilling fluids are sold by truck or rail, revenue is recognized when title is transferred, which is either upon delivering product to the customer or when the product leaves the Partnership's facility, depending on the specific terms of the contract. Delivery of product is invoiced as the transaction occurs and is generally paid within a month. 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.

Natural Gas Liquids Segment

    Natural Gas Liquids ("NGL") revenue is recognized when product is delivered by truck, rail, or pipeline to the Partnership's NGL customers. Revenue is recognized on title transfer of the product to the customer. Delivery of product 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.

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.

    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.

	2021		2022		2023		2024		2025		Thereafter		Total
Terminalling and storage
Throughput and storage	$	9,843	$	40,394	$	41,605	$	42,910	$	44,197	$	294,205	$	473,154
Natural Gas Services
Natural Gas Liquids	1,644		6,048		5,391		5,405		5,391		3,131		27,010
Sulfur services
Sulfur product sales	4,291		17,165		16,415		2,156		2,156		1,477		43,660
Total	$	15,778	$	63,607	$	63,411	$	50,471	$	51,744	$	298,813	$	543,824

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Inventories

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Components of inventories at September 30, 2021 and December 31, 2020 were as follows: 

	September 30, 2021		December 31, 2020
Natural gas liquids	$	65,136	$	27,878
Sulfur	49		24
Fertilizer	8,799		10,854
Lubricants	19,670		11,002
Other	4,485		4,364
	$	98,139	$	54,122

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

DEBT

At September 30, 2021 and December 31, 2020, long-term debt consisted of the following:

	September 30, 2021		December 31, 2020
$275,000 Revolving credit facility at variable interest rate (5.00%1 weighted average at September 30, 2021), due August 2023 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $3,004 and $3,826, respectively 2	$	205,496	$	144,174
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $— and $—, respectively, including unamortized premium of $— and $—, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, $335,666 refinanced as part of the August 2020 Exchange offer, $28,790 repaid at maturity in February 2021, unsecured 2,3,4	—		28,790
$53,750 Senior notes due February 2024, 10.0% interest, net of unamortized debt issuance costs of $2,719 and $3,577, respectively, secured 2,3	51,031		50,173
$291,970 Senior notes due February 2025, 11.5% interest, net of unamortized debt issuance costs of $1,407 and $1,720, respectively, secured 2,3	290,563		290,250
Total	547,090		513,387
Less: current portion	—		(28,790)
Total long-term debt, net of current portion	$	547,090	$	484,597
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	108		289
Total finance lease obligations	$	348	$	2,996

    1 Interest rate fluctuates based on LIBOR (set on the date of each advance) or the base prime rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2020 and September 30, 2021 were at LIBOR plus an applicable margin with LIBOR having a floor of 1.00% per annum. The applicable margin for revolving loans that are LIBOR loans currently ranges from 2.75% to 4.00%, and the applicable margin for revolving loans that are base prime rate loans currently ranges from 1.75% to 3.00%.  The applicable margin for LIBOR borrowings at September 30, 2021 is 4.00%. 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"). The credit facility was amended on July 16, 2021 to, among other things, reduce the commitments thereunder from $300,000 to $275,000.

    2 The Partnership was in compliance with all debt covenants as of September 30, 2021 and December 31, 2020, respectively.

    3 The indentures for each of the outstanding series of senior notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

4 On February 15, 2021, the 2021 Notes matured and the Partnership retired the outstanding balance of $28,790 using funds borrowed under its revolving credit facility.

    The Partnership paid cash interest, net of capitalized interest, in the amount of $22,635 and $15,698 for the three months ended September 30, 2021 and 2020, respectively. The Partnership paid cash interest, net of capitalized interest, in the amount of $48,630 and $34,811 for the nine months ended September 30, 2021 and 2020, respectively.  Capitalized interest was $0 and $16 for the three months ended September 30, 2021 and 2020, respectively. Capitalized interest was $0 and $26 for the nine months ended September 30, 2021 and 2020, respectively.

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Leases

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases

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 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.

Our leases have remaining lease terms of 1 year to 15 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 three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	2,485	$	2,572	$	6,987	$	8,182
Finance lease cost:
Amortization of right-of-use assets	$	25	390		$	140	1,505
Interest on lease liabilities	$	5	62		$	21	258
Short-term lease cost	$	2,324	3,138		$	7,905	10,054
Variable lease cost	$	28	$	33	$	87	$	83
Total lease cost	$	4,867	$	6,195	$	15,140	$	20,082

Supplemental balance sheet information related to leases at September 30, 2021 and December 31, 2020 was as follows:

	September 30, 2021		December 31, 2020
Operating Leases
Operating lease right-of-use assets	$	21,267	$	22,260
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	6,746	$	7,529
Operating lease liabilities	$	14,960	15,181
Total operating lease liabilities	$	21,706	$	22,710
Finance Leases
Property, plant and equipment, at cost	$	1,071	$	10,352
Accumulated depreciation	$	(339)	(3,703)
Property, plant and equipment, net	$	732	$	6,649
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	$	108	289
Total finance lease obligations	$	348	$	2,996

    The Partnership’s future minimum lease obligations as of September 30, 2021 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	7,801	$	252
Year 2	5,102		109
Year 3	2,923		—
Year 4	2,220		—
Year 5	1,494		—
Thereafter	7,120		—
Total	$	26,660	$	361
Less amounts representing interest costs	(4,954)		(13)
Total lease liability	$	21,706	$	348

    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 September 30, 2021 are as follows: 2021 - $6,139; 2022 - $14,924; 2023 - $14,364; 2024 - $14,364; 2025 - $13,798; subsequent years - $38,539.

Leases

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 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.

Our leases have remaining lease terms of 1 year to 15 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 three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	2,485	$	2,572	$	6,987	$	8,182
Finance lease cost:
Amortization of right-of-use assets	$	25	390		$	140	1,505
Interest on lease liabilities	$	5	62		$	21	258
Short-term lease cost	$	2,324	3,138		$	7,905	10,054
Variable lease cost	$	28	$	33	$	87	$	83
Total lease cost	$	4,867	$	6,195	$	15,140	$	20,082

Supplemental balance sheet information related to leases at September 30, 2021 and December 31, 2020 was as follows:

	September 30, 2021		December 31, 2020
Operating Leases
Operating lease right-of-use assets	$	21,267	$	22,260
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	6,746	$	7,529
Operating lease liabilities	$	14,960	15,181
Total operating lease liabilities	$	21,706	$	22,710
Finance Leases
Property, plant and equipment, at cost	$	1,071	$	10,352
Accumulated depreciation	$	(339)	(3,703)
Property, plant and equipment, net	$	732	$	6,649
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	$	108	289
Total finance lease obligations	$	348	$	2,996

    The Partnership’s future minimum lease obligations as of September 30, 2021 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	7,801	$	252
Year 2	5,102		109
Year 3	2,923		—
Year 4	2,220		—
Year 5	1,494		—
Thereafter	7,120		—
Total	$	26,660	$	361
Less amounts representing interest costs	(4,954)		(13)
Total lease liability	$	21,706	$	348

    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 September 30, 2021 are as follows: 2021 - $6,139; 2022 - $14,924; 2023 - $14,364; 2024 - $14,364; 2025 - $13,798; subsequent years - $38,539.

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Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

SUPPLEMENTAL BALANCE SHEET INFORMATION

    Components of "Other accrued liabilities" were as follows:

	September 30, 2021		December 31, 2020
Accrued interest	$	5,261	$	16,104
Asset retirement obligations	300		1,692
Property and other taxes payable	4,546		4,869
Accrued payroll	4,425		3,244
Operating lease liabilities	6,746		7,529
Other	418		969
	$	21,696	$	34,407

The schedule below summarizes the changes in our asset retirement obligations:

	September 30, 2021
Beginning asset retirement obligations	$	8,759
Additions to asset retirement obligations	—
Accretion expense	284
Liabilities settled	(22)
Ending asset retirement obligations	9,021
Current portion of asset retirement obligations1	(300)
Long-term portion of asset retirement obligations2	$	8,721

1The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets.

2The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets.

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Derivative Instruments and Hedging Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Partnership’s results of operations could be materially impacted by changes in commodity prices and interest rates. In an effort to manage its exposure to these risks, the Partnership periodically enters into various derivative instruments, including commodity and interest rate hedges. At the time derivative contracts are entered into, the Partnership assesses whether the nature of the instrument qualifies for hedge accounting treatment according to the requirements of ASC 815 – Derivatives and Hedging. For those transactions designated as hedging instruments for accounting purposes, the Partnership documents all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. The Partnership also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows or fair value of hedged items. All derivatives and hedging instruments are included on the balance sheet as an asset or a liability measured at fair value. Changes in fair value for hedging instruments are recognized on the balance sheet through Accumulated Other Comprehensive Income ("AOCI"). Settlements related to effective hedging relationships will be reclassified from AOCI to earnings during the term at which the hedged transactions are reflected on the income statement.

From time to time, derivatives designated for hedge accounting may be closed prior to contract expiration. The accounting treatment of closed positions depends on whether the closure occurred due to the hedged transaction occurring early or if the hedged transaction is still expected to occur as originally forecasted. For hedged transactions that occur early, the closure results in the realized gain or loss from closure being recognized in the same period the accelerated hedged transaction affects earnings. For hedged transactions that are still expected to occur as originally forecasted, the closure results in the realized gain or loss being deferred until the hedged transaction affects earnings.

If it is determined that hedged transactions associated with cash flow hedges are no longer probable of occurring, the gain or loss associated with the instrument is recognized immediately into earnings.

From time to time, we may have derivative financial instruments for which we do not elect hedge accounting. Changes in fair value for derivatives not designated as hedges are recognized as gains and losses in the earnings of the periods in which they occur.

(a)    Commodity Derivative Instruments

    The Partnership from time to time has used derivatives to manage the risk of commodity price fluctuation. Commodity risk is the adverse effect on the value of a liability or future purchase that results from a change in commodity price.  The Partnership has established a hedging policy and monitors and manages the commodity market risk associated with potential commodity risk exposure.  In addition, the Partnership has focused on utilizing counterparties for these transactions whose financial condition is appropriate for the credit risk involved in each specific transaction. The Partnership has entered into hedging transactions as of September 30, 2021, to protect a portion of its commodity price risk exposure. These hedging arrangements are in the form of swaps for NGLs. At September 30, 2021, the Partnership had instruments totaling a gross notional quantity of 400,000 barrels settling during the period from October 31, 2021 through December 31, 2021. At December 31, 2020, the Partnership had instruments totaling a gross notional quantity of 137,000 barrels settling during the period from January 31, 2021 through February 28, 2021. These instruments settle against the applicable pricing source for each grade and location.

    For information regarding gains and losses on commodity derivative instruments, see "Tabular Presentation of Gains and Losses on Derivative Instruments" below.

(b)    Tabular Presentation of Gains and Losses on Derivative Instruments

    The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:

	Derivative Assets					Derivative Liabilities
		Fair Values					Fair Values
	Balance Sheet Location	September 30, 2021		December 31, 2020		Balance Sheet Location	September 30, 2021		December 31, 2020
Derivatives designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	—	$	—	Fair value of derivatives	$	5,049	$	—
Derivatives not designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	—	$	—	Fair value of derivatives	$	—	$	207

The following table summarizes the loss recognized in AOCI at September 30, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the three months ended September 30, 2021 for derivative financial instruments designated as cash flow hedges:

	Amount of Gain (Loss) Recognized in AOCI				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	2021		2020			2021		2020
Commodity contracts	$	(5,999)	$	—	Cost of products sold	$	—	$	—
Total	$	(5,999)	$	—		$	—	$	—

The following table summarizes the loss recognized in AOCI at September 30, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the nine months ended September 30, 2021 for derivative financial instruments designated as cash flow hedges:

	Amount of Gain (Loss) Recognized in AOCI				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	2021		2020			2021		2020
Commodity contracts	$	(5,999)	$	—	Cost of products sold	$	—	$	—
Total	$	(5,999)	$	—		$	—	$	—

The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended September 30, 2021:

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2021		2020
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	(941)	$	(134)
Total effect of derivatives not designated as hedging instruments		$	(941)	$	(134)

The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the nine months ended September 30, 2021:

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2021		2020
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	(1,825)	$	(263)
Total effect of derivatives not designated as hedging instruments		$	(1,825)	$	(263)

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Partners' Capital

9 Months Ended

Sep. 30, 2021

Partners' Capital Notes [Abstract]

Partners' Capital

PARTNERS' CAPITAL

As of September 30, 2021, Partners’ capital consisted of 38,802,750 common limited partner units, representing a 98% partnership interest, and a 2% general partner interest. Martin Resource Management Corporation, through subsidiaries, owns 6,114,532 of the Partnership's common limited partner units representing approximately 15.8% of the Partnership's outstanding common limited partner units. Martin Midstream GP LLC ("MMGP"), the Partnership's general partner, owns the 2% general partnership interest. Martin Resource Management Corporation controls the Partnership's general partner, by virtue of its 51% voting interest in MMGP Holdings, LLC ("Holdings"), the sole member of the Partnership's general partner.

The partnership agreement of the Partnership (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 $550,773 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 $287,734 reflected as reductions to Partners' capital.

Incentive Distribution Rights

MMGP holds a 2% general partner interest and certain incentive distribution rights ("IDRs") in the Partnership. IDRs are a separate class of non-voting limited partner interest that may be transferred or sold by the general partner under the terms of the Partnership Agreement, and represent the right to receive an increasing percentage of cash distributions after the minimum quarterly distribution and any cumulative arrearages on common units once certain target distribution levels have been achieved. The Partnership is required to distribute all of its available cash from operating surplus, as defined in the Partnership Agreement.

The target distribution levels entitle the general partner to receive 2% of quarterly cash distributions from the minimum of $0.50 per unit up to $0.55 per unit, 15% of quarterly cash distributions in excess of $0.55 per unit until all unitholders have received $0.625 per unit, 25% of quarterly cash distributions in excess of $0.625 per unit until all unitholders have received $0.75 per unit and 50% of quarterly cash distributions in excess of $0.75 per unit.

The general partner was allocated no incentive distributions during the nine months ended September 30, 2021 and 2020.

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 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. Distributions to the general partner pursuant to the IDRs are limited to available cash that will be distributed as defined in the Partnership Agreement. Accordingly, the Partnership does not allocate undistributed earnings to the general partner for the IDRs because the general partner's share of available cash is the maximum amount that the general partner would be contractually entitled to receive if all earnings for the period were distributed. 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 income and 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 allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net loss	$	(6,911)	$	(10,819)	$	(11,012)	$	(4,207)
Less general partner’s interest in net loss:
Distributions payable on behalf of general partner interest	4		4		12		57
General partner interest in undistributed loss	(142)		(220)		(232)		(141)
Less loss allocable to unvested restricted units	(20)		(53)		(30)		(8)
Limited partners’ interest in net loss	$	(6,753)	$	(10,550)	$	(10,762)	$	(4,115)

    The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Basic weighted average limited partner units outstanding	38,687,874	38,661,852	38,689,434	38,654,891
Dilutive effect of restricted units issued	—	—	—	—
Total weighted average limited partner diluted units outstanding	38,687,874	38,661,852	38,689,434	38,654,891

    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 periods presented. All common unit equivalents were antidilutive for the three and nine months ended September 30, 2021 and 2020 because the limited partners were allocated a net loss in this period.

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Unit Based Awards

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Unit Based Awards

UNIT BASED AWARDS

The Partnership recognizes compensation cost related to unit-based awards to both employees and non-employees in its consolidated and condensed financial statements in accordance with certain provisions of ASC 718. Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Restricted unit Awards
Employees	$	—	$	305	$	194	$	907
Non-employee directors	48		56		142		163
Phantom unit Awards
Employees	181		—		181		—
Non-employee directors	—		—		—		—
Total unit-based compensation expense	$	229	$	361	$	517	$	1,070

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.

Phantom Unit Plan

On July 21, 2021, the board of directors of the general partner of the Partnership and the Compensation Committee approved the Martin Midstream Partners L.P. 2021 Phantom Unit Plan (the “Plan”), effective as of the same date. The Plan permits 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 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 30th 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 Plan), the award will vest in full and be paid in cash no later than the 30th 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 July 21, 2021, 620,000 phantom units and 1,245,000 phantom unit appreciation rights were granted to employees of the general partner and its affiliates who perform services for the Partnership.

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 and Condensed Statements of Operations. All of the Partnership's outstanding phantom unit awards at September 30, 2021 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 "Other current liabilities" and "Other long-term obligations" in the Consolidated and Condensed Balance Sheets.As of September 30, 2021, there was a total of $2,021 of unrecognized compensation costs related to non-vested phantom unit awards. These costs are expected to be recognized over a remaining life of 2.81 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 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 of the general partner’s board of directors (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 plan containing such terms as the Compensation Committee shall determine under the plan. 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 ("Performance Based Restricted Units" or "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 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 performance conditions related to the PBRUs awarded on March 1, 2018 were not achieved and the Partnership treated these units as forfeited at expiration on March 31, 2021. As such, the Partnership did not recognize compensation expense related to these units.

The restricted units issued to directors generally vest in equal annual installments over a four-year period. Restricted units issued to employees generally vest in equal annual installments over three years of service. All of the Partnership's outstanding restricted unit awards at September 30, 2021 met the criteria to be treated under equity classification.

In February 2021, the Partnership issued 14,056 TBRUs to each of the Partnership's three independent directors under the 2017 LTIP.  These restricted common units vest in equal installments of 3,514 units on January 24, 2022, 2023, 2024, and 2025.

    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 nine months ended September 30, 2021 is provided below:

	Number of Units		Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period	273,424		$	10.52
Granted (TBRU)	42,168		$	2.49
Vested	(117,280)		$	11.96
Forfeited	(83,436)		$	13.90
Non-Vested, end of period	114,876		$	3.65
Aggregate intrinsic value, end of period	$	368

    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 three and nine months ended September 30, 2021 and 2020 is provided below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Aggregate intrinsic value of units vested	$	—	$	—	$	257	$	151
Fair value of units vested	—		—		1,418		1,427

    As of September 30, 2021, there was $296 of unrecognized compensation cost related to non-vested restricted units. That cost is expected to be recognized over a weighted-average period of 2.69 years.

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Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

As of September 30, 2021, Martin Resource Management Corporation owns 6,114,532 of the Partnership’s common units representing approximately 15.8% of the Partnership’s outstanding limited partner units.  Martin Resource Management Corporation controls the Partnership's general partner by virtue of its 51% voting interest in 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 and the Partnership’s IDRs.  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 September 30, 2021, 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 and transactions:

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.

    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;

•distributing NGLs; 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;

◦supplying employees and services for the operation of the Partnership's business; and

◦operating, solely for the Partnership's account, the asphalt facilities in Omaha, Nebraska, Port Neches, Texas, and South Houston, Texas.

•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 of the board of directors of the general partner of the Partnership (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, 2021, through December 31, 2021, the Conflicts Committee approved an annual reimbursement amount for indirect expenses of $14,386. The Partnership reimbursed Martin Resource Management Corporation for $3,597 and $4,103 of indirect expenses for the three months ended September 30, 2021 and 2020, respectively.  The Partnership reimbursed Martin Resource Management Corporation for $10,790 and $12,364 of indirect expenses for the nine months ended September 30, 2021 and 2020, respectively.  The Conflicts Committee 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.  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.

Master Transportation Services Agreement

    Master Transportation Agreement.  Martin Transport, Inc. ("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.

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 Mexico 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.

Terminal Services Agreements

    Diesel Fuel Terminal Services Agreement.  Effective January 1, 2016, the Partnership entered into a second amended and restated terminalling services agreement under which the Partnership provides terminal services to Martin Resource Management Corporation for marine fuel distribution.  At such time, the per-gallon throughput fee the Partnership charged under this agreement was increased when compared to the previous agreement and may be adjusted annually based on a price index.  This agreement was further amended on January 1, 2017, October 1, 2017, April 1, 2019, and January 1, 2020 to modify its minimum throughput requirements and throughput fees. The term of this agreement is currently evergreen and it will continue on a month to month basis until terminated by either party by giving 60 days’ written notice.  

    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.

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.  As of December 31, 2019, the annual capital recovery fee reimbursement of $2,088 expired. An additional $2,586 of capital recovery fee reimbursement expired on December 31, 2020.  All of these fees (other than the fuel surcharge and capital recovery fee) are subject to escalation annually based upon the greater of 3% or the increase in the Consumer Price Index for a specified annual period. Also, the Partnership renegotiated a crude transportation contract set to expire in the first half of 2022, resulting in a reduction in revenue of $2,145 annually beginning January 1, 2020.

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 46% 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 three months ended September 30, 2021 and 2020 were

$283 and $173, respectively. Amounts paid to East Texas Mack for tractor and trailer lease payments and lease residuals for the nine months ended September 30, 2021 and 2020 were $801 and $432, respectively.

    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 and Condensed 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 captions of the consolidated and condensed financial statements 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 and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues:
Terminalling and storage	$	15,866	$	15,902	$	46,741	$	47,718
Transportation	5,564		5,514		14,463		16,801
Product sales:
Sulfur services	28		5		87		33
Terminalling and storage	40		64		166		166
	68		69		253		199
	$	21,498	$	21,485	$	61,457	$	64,718

    The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of products sold:
Sulfur services	$	2,441	$	2,512	$	7,379	$	7,833
Terminalling and storage	7,259		4,303		18,863		14,329
	$	9,700	$	6,815	$	26,242	$	22,162

    The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating expenses:
Transportation	$	13,949	$	13,009	$	40,652	$	41,950
Natural gas liquids	534		486		1,511		1,481
Sulfur services	1,321		1,120		3,370		3,403
Terminalling and storage	4,284		4,300		12,513		13,292
	$	20,088	$	18,915	$	58,046	$	60,126

    The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Selling, general and administrative:
Transportation	$	1,732	$	1,803	$	5,103	$	5,459
Natural gas liquids	576		772		2,660		2,009
Sulfur services	813		765		2,320		2,254
Terminalling and storage	878		863		2,530		2,536
Indirect, including overhead allocation	3,660		4,153		11,011		12,465
	$	7,659	$	8,356	$	23,624	$	24,723

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Business Segments

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

    The Partnership has four reportable segments: (1) terminalling and storage, (2) transportation, (3) sulfur services and (4) natural gas liquids. The Partnership’s reportable segments are strategic business units that offer different products and services. The operating income of these segments is reviewed by the chief operating decision maker to assess performance and make business decisions.

    The accounting policies of the operating segments are the same as those described in Note 2 in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 3, 2021. The Partnership evaluates the performance of its reportable segments based on operating income. There is no allocation of interest expense.

Three Months Ended September 30, 2021	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	51,226		(1,648)		49,578		7,049		3,269		2,087
Transportation	42,568		(3,489)		39,079		3,710		430		1,086
Sulfur services	30,837		—		30,837		2,594		4,534		1,104
Natural gas liquids	91,764		—		91,764		592		3,994		20
Indirect selling, general and administrative	—		—		—		—		(4,074)		—
Total	$	216,395	$	(5,137)	$	211,258	$	13,945	$	8,153	$	4,297

Three Months Ended September 30, 2020	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	48,188		(1,823)		46,365		7,294		6,426		1,863
Transportation	35,712		(3,774)		31,938		4,412		(2,673)		1,785
Sulfur services	21,880		—		21,880		2,953		7,115		1,393
Natural gas liquids	52,350		—		52,350		617		4,668		173
Indirect selling, general and administrative	—		—		—		—		(4,523)		—
Total	$	158,130	$	(5,597)	$	152,533	$	15,276	$	11,013	$	5,214

    

Nine Months Ended September 30, 2021	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	136,584	$	(4,918)	$	131,666	$	21,150	$	8,153	$	6,258
Transportation	114,886		(11,066)		103,820		12,039		(7,782)		2,702
Sulfur services	103,958		—		103,958		7,882		21,136		4,968
Natural gas liquids	257,081		—		257,081		1,791		21,738		481
Indirect selling, general and administrative	—		—		—		—		(11,773)		—
Total	$	612,509	$	(15,984)	$	596,525	$	42,862	$	31,472	$	14,409

Nine Months Ended September 30, 2020	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	146,298	$	(5,091)	$	141,207	$	22,022	$	10,153	$	8,885
Transportation	116,145		(13,781)		102,364		13,020		(9,772)		6,483
Sulfur services	83,636		(13)		83,623		8,978		29,787		6,267
Natural gas liquids	164,865		(5)		164,860		1,838		17,661		348
Indirect selling, general and administrative	—		—		—		—		(13,256)		—
Total	$	510,944	$	(18,890)	$	492,054	$	45,858	$	34,573	$	21,983

    The Partnership's assets by reportable segment as of September 30, 2021 and December 31, 2020, are as follows:

	September 30, 2021		December 31, 2020
Total assets:
Terminalling and storage	$	249,723	$	252,794
Transportation	142,767		151,953
Sulfur services	97,986		94,154
Natural gas liquids	123,762		80,737
Total assets	$	614,238	$	579,638

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

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 lawsuits filed against it in various United States District Courts, which generally allege that the customer engaged in unlawful and deceptive business practices in connection with its marketing and advertising of its private label motor oil.  The Partnership disputes that it has any obligation to defend or indemnify the customer for its conduct.  Accordingly, on January 7, 2016, the Partnership filed a Complaint for Declaratory Judgment in the Chancery Court of Davidson County, Tennessee requesting a judicial determination that the Partnership does not owe the customer the demanded defense and indemnity obligations.  The lawsuits against the customer have been transferred to the United States

District Court for the Western District of Missouri for consolidated pretrial proceedings.  On March 1, 2017, at the request of the parties, the Chancery Court of Davidson County, Tennessee administratively closed the Partnership's lawsuit pending rulings in the United States District Court for the Western District of Missouri.  In the event that either party moves the Chancery Court of Davidson County, Tennessee to reopen the case, we expect the Court would grant such motion and reopen the case.  Further, the same customer has made a claim under the Partnership’s insurance policy.  The insurer has denied the claim.  However, in the event that the customer is successful in pursuing the claim, such action would negatively impact the Partnership because the Partnership may have certain reimbursement obligations it would owe the insurance company.  If the case is reopened or the insurance claim by the customer is successful, we are currently unable to determine the exposure we may have in this matter, if any.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

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.

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 2
	September 30, 2021		December 31, 2020
Commodity derivative contracts, net	$	(5,049)	$	(207)

    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 revolving 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 2021 Notes, 2024 Notes, and 2025 Notes (collectively, the "Senior Notes") is considered Level 1, as the fair value is based on quoted market prices in active markets.

	September 30, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Notes	$	—	$	—	$	28,790	$	28,581
2024 Notes	$	51,031	$	55,126	$	50,173	$	55,214
2025 Notes	$	290,563	$	302,797	$	290,250	$	288,692
Total	$	341,594	$	357,923	$	369,213	$	372,487

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Condensed Consolidated Financial Information	9 Months Ended
	Sep. 30, 2021
Consolidating Financial Statements [Abstract]
Condensed Consolidated Financial Information	CONDENSED CONSOLIDATED FINANCIAL INFORMATION    The Partnership's operations are conducted by its operating subsidiaries as it has no independent assets or operations. Martin Operating Partnership L.P. (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 Senior Notes and any subsidiaries other than the subsidiary guarantors are minor.

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Provision for income taxes	$	954	$	373	$	2,111	$	1,510

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. MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (the "Taxable Subsidiary"). Total income tax expense of $895 and $225, related to the operation of the Taxable Subsidiary, for the three months ended September 30, 2021 and 2020, resulted in an effective income tax rate ("ETR") of 23.42% and 45.72%, respectively. Total income tax expense of $1,871 and $1,162, related to the operation of the Taxable Subsidiary, for the nine months ended September 30, 2021 and 2020, resulted in an ETR of 29.51% and 80.42%, respectively.

The decrease in the ETR for the income taxes during the three and nine months ended September 30, 2021, was primarily due to significantly larger pretax income recorded for both the three and nine months ended September 30, 2021 compared to the similar periods in 2020. The increase in the provision for income taxes for the three and nine months ended September 30, 2021, compared to similar periods in 2020, was primarily due to an increase in income before income taxes in the current period.

    A current federal income tax expense (benefit) of $153 and $0, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2021 and 2020, respectively. A current federal income tax expense (benefit) of $276 and $(174), related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2021 and 2020, respectively. A current state income tax expense of $81 and $41, related to the operation of the Taxable Subsidiary, was recorded for the three months ended September 30, 2021 and 2020, respectively. A current state income tax expense of $177 and $134, related to the operation of the Taxable Subsidiary, was recorded for the nine months ended September 30, 2021 and 2020, respectively.

With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. 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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which 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.

    A deferred tax expense related to the MTI temporary differences of $661 and $183 was recorded for the three months ended September 30, 2021 and 2020, respectively. A deferred tax expense related to the MTI temporary differences of $1,419 and $1,202 was recorded for the nine months ended September 30, 2021 and 2020, respectively. A net deferred tax asset of $20,834 and $22,253, related to the cumulative book and tax temporary differences, existed at September 30, 2021 and December 31, 2020, respectively.

    All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.

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Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSQuarterly Distribution. On October 20, 2021, the Partnership declared a quarterly cash distribution of $0.005 per common unit for the third quarter of 2021, or $0.020 per common unit on an annualized basis, which will be paid on November 12, 2021 to unitholders of record as of November 5, 2021.

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New Accounting Pronouncements (Policies)

9 Months Ended

Sep. 30, 2021

Accounting Changes and Error Corrections [Abstract]

New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTSOn January 1, 2021, the Partnership adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2019-12, Income Taxes (Accounting Standards Codification ("ASC") Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions to general principles in ASC 740 and clarifies and amends existing guidance within U.S. GAAP. Adoption of the new standard did not have a material impact on the Partnership’s consolidated financial statements.

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.

Fair Value of Financial Instruments

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 revolving 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 2021 Notes, 2024 Notes, and 2025 Notes (collectively, the "Senior Notes") is considered Level 1, as the fair value is based on quoted market prices in active markets.

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Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates our revenue by major source:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Terminalling and storage segment
Lubricant product sales	$	30,598	$	25,659	$	75,606	$	80,119
Throughput and storage	18,980		20,706		56,060		61,088
	$	49,578	$	46,365	$	131,666	$	141,207
Natural gas liquids segment
Natural gas liquids product sales	$	91,764	$	52,350	$	257,081	$	164,860
	$	91,764	$	52,350	$	257,081	$	164,860
Sulfur services segment
Sulfur product sales	$	7,768	$	6,161	$	22,222	$	19,010
Fertilizer product sales	20,119		12,804		72,887		55,869
Sulfur services	2,950		2,915		8,849		8,744
	$	30,837	$	21,880	$	103,958	$	83,623
Transportation segment
Land transportation	$	30,273	$	21,879	$	80,715	$	65,986
Inland transportation	7,465		9,294		20,822		33,611
Offshore transportation	1,341		765		2,283		2,767
	$	39,079	$	31,938	$	103,820	$	102,364

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

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.

	2021		2022		2023		2024		2025		Thereafter		Total
Terminalling and storage
Throughput and storage	$	9,843	$	40,394	$	41,605	$	42,910	$	44,197	$	294,205	$	473,154
Natural Gas Services
Natural Gas Liquids	1,644		6,048		5,391		5,405		5,391		3,131		27,010
Sulfur services
Sulfur product sales	4,291		17,165		16,415		2,156		2,156		1,477		43,660
Total	$	15,778	$	63,607	$	63,411	$	50,471	$	51,744	$	298,813	$	543,824

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Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Components of Inventories

Components of inventories at September 30, 2021 and December 31, 2020 were as follows: 

	September 30, 2021		December 31, 2020
Natural gas liquids	$	65,136	$	27,878
Sulfur	49		24
Fertilizer	8,799		10,854
Lubricants	19,670		11,002
Other	4,485		4,364
	$	98,139	$	54,122

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Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

At September 30, 2021 and December 31, 2020, long-term debt consisted of the following:

	September 30, 2021		December 31, 2020
$275,000 Revolving credit facility at variable interest rate (5.00%1 weighted average at September 30, 2021), due August 2023 secured by substantially all of the Partnership’s assets, including, without limitation, inventory, accounts receivable, vessels, equipment, fixed assets and the interests in the Partnership’s operating subsidiaries, net of unamortized debt issuance costs of $3,004 and $3,826, respectively 2	$	205,496	$	144,174
$400,000 Senior notes, 7.25% interest, net of unamortized debt issuance costs of $— and $—, respectively, including unamortized premium of $— and $—, respectively, issued $250,000 February 2013 and $150,000 April 2014, $26,200 repurchased during 2015, $9,344 repurchased during 2020, $335,666 refinanced as part of the August 2020 Exchange offer, $28,790 repaid at maturity in February 2021, unsecured 2,3,4	—		28,790
$53,750 Senior notes due February 2024, 10.0% interest, net of unamortized debt issuance costs of $2,719 and $3,577, respectively, secured 2,3	51,031		50,173
$291,970 Senior notes due February 2025, 11.5% interest, net of unamortized debt issuance costs of $1,407 and $1,720, respectively, secured 2,3	290,563		290,250
Total	547,090		513,387
Less: current portion	—		(28,790)
Total long-term debt, net of current portion	$	547,090	$	484,597
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	108		289
Total finance lease obligations	$	348	$	2,996

    1 Interest rate fluctuates based on LIBOR (set on the date of each advance) or the base prime rate plus an applicable margin. The margin is set every three months. All amounts outstanding at December 31, 2020 and September 30, 2021 were at LIBOR plus an applicable margin with LIBOR having a floor of 1.00% per annum. The applicable margin for revolving loans that are LIBOR loans currently ranges from 2.75% to 4.00%, and the applicable margin for revolving loans that are base prime rate loans currently ranges from 1.75% to 3.00%.  The applicable margin for LIBOR borrowings at September 30, 2021 is 4.00%. 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"). The credit facility was amended on July 16, 2021 to, among other things, reduce the commitments thereunder from $300,000 to $275,000.

    2 The Partnership was in compliance with all debt covenants as of September 30, 2021 and December 31, 2020, respectively.

    3 The indentures for each of the outstanding series of senior notes restrict the Partnership’s ability to sell assets; pay distributions or repurchase units or redeem or repurchase subordinated debt; make investments; incur or guarantee additional indebtedness or issue preferred units; and consolidate, merge or transfer all or substantially all of its assets.

4 On February 15, 2021, the 2021 Notes matured and the Partnership retired the outstanding balance of $28,790 using funds borrowed under its revolving credit facility.

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Components of Lease Expense

The components of lease expense for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	2,485	$	2,572	$	6,987	$	8,182
Finance lease cost:
Amortization of right-of-use assets	$	25	390		$	140	1,505
Interest on lease liabilities	$	5	62		$	21	258
Short-term lease cost	$	2,324	3,138		$	7,905	10,054
Variable lease cost	$	28	$	33	$	87	$	83
Total lease cost	$	4,867	$	6,195	$	15,140	$	20,082

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases at September 30, 2021 and December 31, 2020 was as follows:

	September 30, 2021		December 31, 2020
Operating Leases
Operating lease right-of-use assets	$	21,267	$	22,260
Current portion of operating lease liabilities included in "Other accrued liabilities"	$	6,746	$	7,529
Operating lease liabilities	$	14,960	15,181
Total operating lease liabilities	$	21,706	$	22,710
Finance Leases
Property, plant and equipment, at cost	$	1,071	$	10,352
Accumulated depreciation	$	(339)	(3,703)
Property, plant and equipment, net	$	732	$	6,649
Current installments of finance lease obligations	$	240	$	2,707
Finance lease obligations	$	108	289
Total finance lease obligations	$	348	$	2,996

Schedule of Future Minimum Lease Obligations, Finance Lease

The Partnership’s future minimum lease obligations as of September 30, 2021 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	7,801	$	252
Year 2	5,102		109
Year 3	2,923		—
Year 4	2,220		—
Year 5	1,494		—
Thereafter	7,120		—
Total	$	26,660	$	361
Less amounts representing interest costs	(4,954)		(13)
Total lease liability	$	21,706	$	348

Schedule of Future Minimum Lease Obligations, Operating Lease

The Partnership’s future minimum lease obligations as of September 30, 2021 consist of the following:

	Operating Leases		Finance Leases
Year 1	$	7,801	$	252
Year 2	5,102		109
Year 3	2,923		—
Year 4	2,220		—
Year 5	1,494		—
Thereafter	7,120		—
Total	$	26,660	$	361
Less amounts representing interest costs	(4,954)		(13)
Total lease liability	$	21,706	$	348

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Supplemental Balance Sheet Information (Tables)

9 Months Ended

Sep. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Schedule of Other Accrued Liabilities

Components of "Other accrued liabilities" were as follows:

	September 30, 2021		December 31, 2020
Accrued interest	$	5,261	$	16,104
Asset retirement obligations	300		1,692
Property and other taxes payable	4,546		4,869
Accrued payroll	4,425		3,244
Operating lease liabilities	6,746		7,529
Other	418		969
	$	21,696	$	34,407

Schedule of Asset Retirement Obligations

The schedule below summarizes the changes in our asset retirement obligations:

	September 30, 2021
Beginning asset retirement obligations	$	8,759
Additions to asset retirement obligations	—
Accretion expense	284
Liabilities settled	(22)
Ending asset retirement obligations	9,021
Current portion of asset retirement obligations1	(300)
Long-term portion of asset retirement obligations2	$	8,721

1The current portion of asset retirement obligations is included in "Other accrued liabilities" on the Partnership's Consolidated and Condensed Balance Sheets.

2The non-current portion of asset retirement obligations is included in "Other long-term obligations" on the Partnership's Consolidated and Condensed Balance Sheets.

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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of Derivative Instruments on the Consolidated Balance Sheets

The following table summarizes the fair value and classification of the Partnership’s derivative instruments in its Consolidated and Condensed Balance Sheets:

	Derivative Assets					Derivative Liabilities
		Fair Values					Fair Values
	Balance Sheet Location	September 30, 2021		December 31, 2020		Balance Sheet Location	September 30, 2021		December 31, 2020
Derivatives designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	—	$	—	Fair value of derivatives	$	5,049	$	—
Derivatives not designated as hedging instruments:	Current:
Commodity contracts	Fair value of derivatives	$	—	$	—	Fair value of derivatives	$	—	$	207

Summary of Losses Recognized in AOCI and Reclassification From AOCI

The following table summarizes the loss recognized in AOCI at September 30, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the three months ended September 30, 2021 for derivative financial instruments designated as cash flow hedges:

	Amount of Gain (Loss) Recognized in AOCI				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	2021		2020			2021		2020
Commodity contracts	$	(5,999)	$	—	Cost of products sold	$	—	$	—
Total	$	(5,999)	$	—		$	—	$	—

The following table summarizes the loss recognized in AOCI at September 30, 2021 and the gain (loss) reclassified from accumulated other comprehensive loss into earnings during the nine months ended September 30, 2021 for derivative financial instruments designated as cash flow hedges:

	Amount of Gain (Loss) Recognized in AOCI				Location of Gain (Loss) Reclassified from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income
	2021		2020			2021		2020
Commodity contracts	$	(5,999)	$	—	Cost of products sold	$	—	$	—
Total	$	(5,999)	$	—		$	—	$	—

Effect of Derivative Instruments on the Consolidated Statement of Operations

The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended September 30, 2021:

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2021		2020
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	(941)	$	(134)
Total effect of derivatives not designated as hedging instruments		$	(941)	$	(134)

The following tables summarize the loss recognized in earnings for derivative instruments not designated as hedging instruments during the nine months ended September 30, 2021:

	Location of Gain (Loss) Recognized in Income on  Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
		2021		2020
Derivatives not designated as hedging instruments:
Commodity contracts	Cost of products sold	$	(1,825)	$	(263)
Total effect of derivatives not designated as hedging instruments		$	(1,825)	$	(263)

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Partners' Capital (Tables)

9 Months Ended

Sep. 30, 2021

Partners' Capital Notes [Abstract]

Reconciliation of Net Income to Partners Interest in Net Income

The following is a reconciliation of net income allocated to the general partner and limited partners for purposes of calculating net income attributable to limited partners per unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net loss	$	(6,911)	$	(10,819)	$	(11,012)	$	(4,207)
Less general partner’s interest in net loss:
Distributions payable on behalf of general partner interest	4		4		12		57
General partner interest in undistributed loss	(142)		(220)		(232)		(141)
Less loss allocable to unvested restricted units	(20)		(53)		(30)		(8)
Limited partners’ interest in net loss	$	(6,753)	$	(10,550)	$	(10,762)	$	(4,115)

The following are the unit amounts used to compute the basic and diluted earnings per limited partner unit for the periods presented:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
Basic weighted average limited partner units outstanding	38,687,874	38,661,852	38,689,434	38,654,891
Dilutive effect of restricted units issued	—	—	—	—
Total weighted average limited partner diluted units outstanding	38,687,874	38,661,852	38,689,434	38,654,891

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Unit Based Awards (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Schedule of Compensation Costs Related to Unit Based Plan

Amounts recognized in operating expense and selling, general, and administrative expense in the consolidated and condensed financial statements with respect to these plans are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Restricted unit Awards
Employees	$	—	$	305	$	194	$	907
Non-employee directors	48		56		142		163
Phantom unit Awards
Employees	181		—		181		—
Non-employee directors	—		—		—		—
Total unit-based compensation expense	$	229	$	361	$	517	$	1,070

Summary of Restricted Unit Activity

A summary of the restricted unit activity for the nine months ended September 30, 2021 is provided below:

	Number of Units		Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period	273,424		$	10.52
Granted (TBRU)	42,168		$	2.49
Vested	(117,280)		$	11.96
Forfeited	(83,436)		$	13.90
Non-Vested, end of period	114,876		$	3.65
Aggregate intrinsic value, end of period	$	368

Summary of Aggregate Intrinsic Value and Fair Value of Units Vested

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 three and nine months ended September 30, 2021 and 2020 is provided below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Aggregate intrinsic value of units vested	$	—	$	—	$	257	$	151
Fair value of units vested	—		—		1,418		1,427

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Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

The Impact of Related Party Transactions

The impact of related party revenues from sales of products and services is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues:
Terminalling and storage	$	15,866	$	15,902	$	46,741	$	47,718
Transportation	5,564		5,514		14,463		16,801
Product sales:
Sulfur services	28		5		87		33
Terminalling and storage	40		64		166		166
	68		69		253		199
	$	21,498	$	21,485	$	61,457	$	64,718

    The impact of related party cost of products sold is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cost of products sold:
Sulfur services	$	2,441	$	2,512	$	7,379	$	7,833
Terminalling and storage	7,259		4,303		18,863		14,329
	$	9,700	$	6,815	$	26,242	$	22,162

    The impact of related party operating expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating expenses:
Transportation	$	13,949	$	13,009	$	40,652	$	41,950
Natural gas liquids	534		486		1,511		1,481
Sulfur services	1,321		1,120		3,370		3,403
Terminalling and storage	4,284		4,300		12,513		13,292
	$	20,088	$	18,915	$	58,046	$	60,126

    The impact of related party selling, general and administrative expenses is reflected in the consolidated and condensed financial statements as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Selling, general and administrative:
Transportation	$	1,732	$	1,803	$	5,103	$	5,459
Natural gas liquids	576		772		2,660		2,009
Sulfur services	813		765		2,320		2,254
Terminalling and storage	878		863		2,530		2,536
Indirect, including overhead allocation	3,660		4,153		11,011		12,465
	$	7,659	$	8,356	$	23,624	$	24,723

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Business Segments (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Reporting by Segment

Three Months Ended September 30, 2021	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	51,226		(1,648)		49,578		7,049		3,269		2,087
Transportation	42,568		(3,489)		39,079		3,710		430		1,086
Sulfur services	30,837		—		30,837		2,594		4,534		1,104
Natural gas liquids	91,764		—		91,764		592		3,994		20
Indirect selling, general and administrative	—		—		—		—		(4,074)		—
Total	$	216,395	$	(5,137)	$	211,258	$	13,945	$	8,153	$	4,297

Three Months Ended September 30, 2020	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	48,188		(1,823)		46,365		7,294		6,426		1,863
Transportation	35,712		(3,774)		31,938		4,412		(2,673)		1,785
Sulfur services	21,880		—		21,880		2,953		7,115		1,393
Natural gas liquids	52,350		—		52,350		617		4,668		173
Indirect selling, general and administrative	—		—		—		—		(4,523)		—
Total	$	158,130	$	(5,597)	$	152,533	$	15,276	$	11,013	$	5,214

    

Nine Months Ended September 30, 2021	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	136,584	$	(4,918)	$	131,666	$	21,150	$	8,153	$	6,258
Transportation	114,886		(11,066)		103,820		12,039		(7,782)		2,702
Sulfur services	103,958		—		103,958		7,882		21,136		4,968
Natural gas liquids	257,081		—		257,081		1,791		21,738		481
Indirect selling, general and administrative	—		—		—		—		(11,773)		—
Total	$	612,509	$	(15,984)	$	596,525	$	42,862	$	31,472	$	14,409

Nine Months Ended September 30, 2020	Operating Revenues		Intersegment Revenues Eliminations		Operating Revenues after Eliminations		Depreciation and Amortization		Operating Income (Loss) after Eliminations		Capital Expenditures and Plant Turnaround Costs
Terminalling and storage	$	146,298	$	(5,091)	$	141,207	$	22,022	$	10,153	$	8,885
Transportation	116,145		(13,781)		102,364		13,020		(9,772)		6,483
Sulfur services	83,636		(13)		83,623		8,978		29,787		6,267
Natural gas liquids	164,865		(5)		164,860		1,838		17,661		348
Indirect selling, general and administrative	—		—		—		—		(13,256)		—
Total	$	510,944	$	(18,890)	$	492,054	$	45,858	$	34,573	$	21,983

Assets by Segment

The Partnership's assets by reportable segment as of September 30, 2021 and December 31, 2020, are as follows:

	September 30, 2021		December 31, 2020
Total assets:
Terminalling and storage	$	249,723	$	252,794
Transportation	142,767		151,953
Sulfur services	97,986		94,154
Natural gas liquids	123,762		80,737
Total assets	$	614,238	$	579,638

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Level 2
	September 30, 2021		December 31, 2020
Commodity derivative contracts, net	$	(5,049)	$	(207)

	September 30, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
2021 Notes	$	—	$	—	$	28,790	$	28,581
2024 Notes	$	51,031	$	55,126	$	50,173	$	55,214
2025 Notes	$	290,563	$	302,797	$	290,250	$	288,692
Total	$	341,594	$	357,923	$	369,213	$	372,487

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Provision for income taxes	$	954	$	373	$	2,111	$	1,510

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Nature of Operations and Basis of Presentation (Details)	9 Months Ended
	Sep. 30, 2021 segment
Accounting Policies [Abstract]
Number of primary business lines	4

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Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue
Revenues		$ 211,258	$ 152,533	$ 596,525	$ 492,054
Lubricant product sales
Disaggregation of Revenue
Revenues	[1]	30,598	25,659	75,606	80,119
Throughput and storage
Disaggregation of Revenue
Revenues	[1]	18,980	20,706	56,060	61,088
Natural gas liquids
Disaggregation of Revenue
Revenues	[1]	91,764	52,350	257,081	164,860
Sulfur services
Disaggregation of Revenue
Revenues		2,950	2,915	8,849	8,744
Terminalling and storage segment
Disaggregation of Revenue
Revenues		49,578	46,365	131,666	141,207
Terminalling and storage segment | Lubricant product sales
Disaggregation of Revenue
Revenues		30,598	25,659	75,606	80,119
Terminalling and storage segment | Throughput and storage
Disaggregation of Revenue
Revenues		18,980	20,706	56,060	61,088
Natural gas liquids segment
Disaggregation of Revenue
Revenues		91,764	52,350	257,081	164,860
Natural gas liquids segment | Natural gas liquids
Disaggregation of Revenue
Revenues		91,764	52,350	257,081	164,860
Sulfur services segment
Disaggregation of Revenue
Revenues		30,837	21,880	103,958	83,623
Sulfur services segment | Sulfur product sales
Disaggregation of Revenue
Revenues		7,768	6,161	22,222	19,010
Sulfur services segment | Fertilizer product sales
Disaggregation of Revenue
Revenues		20,119	12,804	72,887	55,869
Sulfur services segment | Sulfur services
Disaggregation of Revenue
Revenues		2,950	2,915	8,849	8,744
Transportation segment
Disaggregation of Revenue
Revenues		39,079	31,938	103,820	102,364
Transportation segment | Land transportation
Disaggregation of Revenue
Revenues		30,273	21,879	80,715	65,986
Transportation segment | Inland transportation
Disaggregation of Revenue
Revenues		7,465	9,294	20,822	33,611
Transportation segment | Offshore transportation
Disaggregation of Revenue
Revenues		$ 1,341	$ 765	$ 2,283	$ 2,767

[1] Related Party Transactions Included Above Three Months EndedNine Months EndedSeptember 30,September 30,2021202020212020Revenues:*    Terminalling and storage$15,866 $15,902 $46,741 $47,718 Transportation5,564 5,514 14,463 16,801 Product Sales68 69 253 199 Costs and expenses:* Cost of products sold: (excluding depreciation and amortization) Sulfur services2,441 2,512 7,379 7,833 Terminalling and storage7,259 4,303 18,863 14,329 Expenses:Operating expenses20,088 18,915 58,046 60,126 Selling, general and administrative7,659 8,356 23,624 24,723 

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Revenue - Estimated Revenue Expected to be Recognized in Future (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 543,824
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 15,778
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 63,607
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 63,411
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 50,471
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 51,744
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 298,813
Revenue, remaining performance obligation, expected timing of satisfaction, period
Terminalling and storage segment | Terminalling and storage
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 473,154
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 9,843
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 40,394
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 41,605
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 42,910
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 44,197
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Terminalling and storage segment | Terminalling and storage | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 294,205
Revenue, remaining performance obligation, expected timing of satisfaction, period
Natural gas liquids | Natural gas liquids
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 27,010
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 1,644
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 6,048
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 5,391
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 5,405
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 5,391
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Natural gas liquids | Natural gas liquids | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 3,131
Revenue, remaining performance obligation, expected timing of satisfaction, period
Sulfur services segment | Sulfur services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 43,660
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 4,291
Revenue, remaining performance obligation, expected timing of satisfaction, period	3 months
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 17,165
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 16,415
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 2,156
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 2,156
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Sulfur services segment | Sulfur services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, remaining performance obligation	$ 1,477
Revenue, remaining performance obligation, expected timing of satisfaction, period

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Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Natural gas liquids	$ 65,136	$ 27,878
Sulfur	49	24
Fertilizer	8,799	10,854
Lubricants	19,670	11,002
Other	4,485	4,364
Inventories	$ 98,139	$ 54,122

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Debt (Details) - USD ($)	1 Months Ended		9 Months Ended
	Feb. 28, 2021	Aug. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Jul. 16, 2021	Jul. 15, 2021	Feb. 15, 2021	Dec. 31, 2020	Dec. 31, 2015	Apr. 30, 2014	Feb. 28, 2013
Debt Instrument
Total long-term debt			$ 547,090,000					$ 513,387,000
Less: current portion			0					(28,790,000)
Total long-term debt, net of current portion			547,090,000					484,597,000
Current installments of finance lease obligations			240,000					2,707,000
Finance lease obligations			108,000					289,000
Total lease liability			348,000					2,996,000
Payment of long term debt			211,790,000	$ 253,637,000
Revolving Loan Facility
Debt Instrument
Total long-term debt			205,496,000					144,174,000
Maximum borrowing capacity			$ 275,000,000		$ 275,000,000	$ 300,000,000
Weighted average interest rate (percent)			5.00%
Unamortized debt issuance costs			$ 3,004,000					3,826,000
Revolving Loan Facility | LIBOR
Debt Instrument
Interest rate floor (percent)			1.00%
Applicable margins (percent)			4.00%
Revolving Loan Facility | LIBOR | Minimum
Debt Instrument
Applicable margins (percent)			2.75%
Revolving Loan Facility | LIBOR | Maximum
Debt Instrument
Applicable margins (percent)			4.00%
Revolving Loan Facility | Prime Rate | Minimum
Debt Instrument
Applicable margins (percent)			1.75%
Revolving Loan Facility | Prime Rate | Maximum
Debt Instrument
Applicable margins (percent)			3.00%
Senior Notes | Senior Notes 7.25%
Debt Instrument
Total long-term debt			$ 0				$ 28,790,000	28,790,000
Unamortized debt issuance costs								0
Face amount								$ 400,000,000		$ 150,000,000	$ 250,000,000
Stated interest rate (percent)								7.25%
Unamortized premium								$ 0
Repurchase amount								9,344,000	$ 26,200,000
Debt refinanced		$ 335,666,000
Payment of long term debt	$ 28,790,000
Senior Notes | Senior Notes 10.0%
Debt Instrument
Total long-term debt			51,031,000					50,173,000
Unamortized debt issuance costs			2,719,000					3,577,000
Face amount			$ 53,750,000
Stated interest rate (percent)			10.00%
Senior Notes | Senior Note 11.5%
Debt Instrument
Total long-term debt			$ 290,563,000					290,250,000
Unamortized debt issuance costs			1,407,000					$ 1,720,000
Face amount			$ 291,970,000
Stated interest rate (percent)			11.50%

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Debt - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Cash paid for interest	$ 22,635	$ 15,698	$ 48,630	$ 34,811
Capitalized interest	$ 0	$ 16	$ 0	$ 26

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Leases - Narrative (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle
Lease termination term	1 year
Non-cancelable revenue arrangements, future minimum revenues, 2021	$ 6,139
Non-cancelable revenue arrangements, future minimum revenues, 2022	14,924
Non-cancelable revenue arrangements, future minimum revenues, 2023	14,364
Non-cancelable revenue arrangements, future minimum revenues, 2024	14,364
Non-cancelable revenue arrangements, future minimum revenues, 2025	13,798
Non-cancelable revenue arrangements, future minimum revenues, subsequent years	$ 38,539
Minimum
New Accounting Pronouncements or Change in Accounting Principle
Remaining lease term (years)	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle
Remaining lease term (years)	15 years
Lease renewal term (years)	5 years

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Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating lease cost	$ 2,485	$ 2,572	$ 6,987	$ 8,182
Finance lease cost:
Amortization of right-of-use assets	25	390	140	1,505
Interest on lease liabilities	5	62	21	258
Short-term lease cost	2,324	3,138	7,905	10,054
Variable lease cost	28	33	87	83
Total lease cost	$ 4,867	$ 6,195	$ 15,140	$ 20,082

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Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Operating Leases
Operating lease right-of-use assets	$ 21,267	$ 22,260
Current portion of operating lease liabilities included in "Other accrued liabilities"	6,746	7,529
Operating lease liabilities	14,960	15,181
Total operating lease liabilities	$ 21,706	$ 22,710
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other accrued liabilities	Other accrued liabilities
Finance Leases
Property, plant and equipment, at cost	$ 1,071	$ 10,352
Accumulated depreciation	(339)	(3,703)
Property, plant and equipment, net	732	6,649
Current installments of finance lease obligations	240	2,707
Finance lease obligations	108	289
Total finance lease obligations	$ 348	$ 2,996

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Leases - Future Minimum Lease Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Operating Leases
Year 1	$ 7,801
Year 2	5,102
Year 3	2,923
Year 4	2,220
Year 5	1,494
Thereafter	7,120
Total	26,660
Less amounts representing interest costs	(4,954)
Total lease liability	21,706	$ 22,710
Finance Leases
Year 1	252
Year 2	109
Year 3	0
Year 4	0
Year 5	0
Thereafter	0
Total	361
Less amounts representing interest costs	(13)
Total lease liability	$ 348	$ 2,996

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Supplemental Balance Sheet Information - Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Related Disclosures [Abstract]
Accrued interest	$ 5,261	$ 16,104
Asset retirement obligations	300	1,692
Property and other taxes payable	4,546	4,869
Accrued payroll	4,425	3,244
Operating lease liabilities	6,746	7,529
Other	418	969
Total other accrued liabilities	$ 21,696	$ 34,407

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Supplemental Balance Sheet Information - Asset Retirement Obligations (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Asset Retirement Obligation, Roll Forward Analysis
Beginning asset retirement obligations	$ 8,759
Additions to asset retirement obligations	0
Accretion expense	284
Liabilities settled	(22)
Ending asset retirement obligations	9,021
Current portion of asset retirement obligations	(300)	$ (1,692)
Long-term portion of asset retirement obligations	$ 8,721

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Derivative Instruments and Hedging Activities - Narrative (Details) - bbl bbl in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Commodity contracts
Derivatives, Fair Value
Notional quantity (in bbl)	400	137

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Derivative Instruments and Hedging Activities - Balance Sheet Derivatives (Details) - Commodity contracts - Fair value of derivatives - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Designated as Hedging Instrument
Derivatives, Fair Value
Derivative Assets	$ 0	$ 0
Derivative Liabilities	5,049	0
Derivatives not designated as hedging instruments
Derivatives, Fair Value
Derivative Assets	0	0
Derivative Liabilities	$ 0	$ 207

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Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax
Amount of Gain (Loss) Reclassified from AOCI into Income	$ 0	$ 0	$ 0	$ 0
Amount Recognized in AOCI After Reclassification	(5,999)	0	(5,999)	0
Commodity contracts
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax
Amount of Gain (Loss) Recognized in AOCI	(5,999)	0	(5,999)	0
Commodity contracts | Cost of products sold
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax
Amount of Gain (Loss) Reclassified from AOCI into Income	$ 0	$ 0	$ 0	$ 0

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Derivative Instruments and Hedging Activities - Statement of Operations Derivatives (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss)
Amount of Gain (Loss) Recognized in Income on Derivatives	$ (941)	$ (134)	$ (1,825)	$ (263)
Commodity contracts | Cost of products sold
Derivative Instruments, Gain (Loss)
Amount of Gain (Loss) Recognized in Income on Derivatives	$ (941)	$ (134)	$ (1,825)	$ (263)

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Partners' Capital - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2019
Limited Partners' Capital Account
Common limited partner units (in shares)	38,802,750
Cash distributions	$ 593	$ 5,121
Martin Resource Management Corporation | Martin Resource Management
Limited Partners' Capital Account
Voting interest percentage	51.00%
Martin Resource Management
Limited Partners' Capital Account
Common limited partner units (in shares)	6,114,532
Voting interest percentage	15.80%
Martin Resource Management Corporation
Limited Partners' Capital Account
Ownership interest (percentage)	98.00%
Martin Resource Management Corporation | Martin Resource Management Corporation
Limited Partners' Capital Account
Purchase price			$ 550,773
Cash distributions			$ 287,734
MMGP LLC
Limited Partners' Capital Account
General partner interest percentage	2.00%
MMGP LLC | Martin Resource Management
Limited Partners' Capital Account
Ownership interest (percentage)	15.80%
General partner interest percentage	2.00%

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Partners' Capital - Incentive Distribution Rights and Distributions of Available Cash (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Limited Partners' Capital Account
Distribution period	45 days
MMGP
Limited Partners' Capital Account
Incentive distribution	$ 0	$ 0
MMGP | Target Level 1
Limited Partners' Capital Account
Target cash distribution, percent	2.00%
MMGP | Target Level 2
Limited Partners' Capital Account
Target cash distribution, percent	15.00%
Target cash distribution (USD per share)	$ 0.625
MMGP | Target Level 3
Limited Partners' Capital Account
Target cash distribution, percent	25.00%
Target cash distribution (USD per share)	$ 0.75
MMGP | Target Level 4
Limited Partners' Capital Account
Target cash distribution, percent	50.00%
MMGP | Minimum | Target Level 1
Limited Partners' Capital Account
Target cash distribution (USD per share)	$ 0.50
MMGP | Minimum | Target Level 2
Limited Partners' Capital Account
Target cash distribution (USD per share)	0.55
MMGP | Minimum | Target Level 3
Limited Partners' Capital Account
Target cash distribution (USD per share)	0.625
MMGP | Minimum | Target Level 4
Limited Partners' Capital Account
Target cash distribution (USD per share)	0.75
MMGP | Maximum | Target Level 1
Limited Partners' Capital Account
Target cash distribution (USD per share)	$ 0.55
MMGP LLC
Limited Partners' Capital Account
General partner interest percentage	2.00%
MMGP LLC | MMGP
Limited Partners' Capital Account
General partner interest percentage	2.00%

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Partners' Capital - Net Income Per Unit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Partners' Capital Notes [Abstract]
Net loss	$ (6,911)	$ (10,819)	$ (11,012)	$ (4,207)
Less general partner’s interest in net loss:
Distributions payable on behalf of general partner interest	4	4	12	57
General partner interest in undistributed loss	(142)	(220)	(232)	(141)
Less loss allocable to unvested restricted units	(20)	(53)	(30)	(8)
Limited partners' interest in net loss	$ (6,753)	$ (10,550)	$ (10,762)	$ (4,115)
Basic weighted average limited partner units outstanding (in shares)	38,687,874	38,661,852	38,689,434	38,654,891
Dilutive effect of restricted units issued (in shares)	0	0	0	0
Total weighted average limited partner diluted units outstanding (in shares)	38,687,874	38,661,852	38,689,434	38,654,891

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Unit Based Awards - Schedule of Compensation Costs (Details) - Selling, General and Administrative Expenses - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Total unit-based compensation expense	$ 229	$ 361	$ 517	$ 1,070
Restricted unit Awards | Employees
Share-based Compensation Arrangement by Share-based Payment Award
Total unit-based compensation expense	0	305	194	907
Restricted unit Awards | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award
Total unit-based compensation expense	48	56	142	163
Phantom unit Awards | Employees
Share-based Compensation Arrangement by Share-based Payment Award
Total unit-based compensation expense	181	0	181	0
Phantom unit Awards | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award
Total unit-based compensation expense	$ 0	$ 0	$ 0	$ 0

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Unit Based Awards - Narrative (Details) $ in Thousands						1 Months Ended	9 Months Ended
	Jan. 24, 2025 shares	Jan. 24, 2024 shares	Jan. 24, 2023 shares	Jan. 24, 2022 shares	Jul. 21, 2021 shares	Feb. 28, 2021 director shares	Sep. 30, 2021 USD ($) shares	May 26, 2017 shares
Phantom unit Awards
Share-based Compensation Arrangement by Share-based Payment Award
Trading days					20 years
Unrecognized compensation cost related to non-vested restricted units | $							$ 2,021
Weighted average period for recognition (in years)							2 years 9 months 21 days
Phantom unit Awards | Employees
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of units (in shares)					620,000
Phantom unit Awards | Affiliates
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of units (in shares)					1,245,000
Restricted unit Awards
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation cost related to non-vested restricted units | $							$ 296
Weighted average period for recognition (in years)							2 years 8 months 8 days
Number of shares authorized (in shares)								3,000,000
Vested, number of units (in shares)							117,280
Restricted unit Awards | Employees
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (in years)							3 years
Restricted unit Awards | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (in years)							4 years
Time Based Restricted Units
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of units (in shares)							42,168
Number of independent directors receiving grants | director						3
Time Based Restricted Units | Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award
Granted, number of units (in shares)						14,056
Time Based Restricted Units | Non-employee directors | Scenario, Forecast
Share-based Compensation Arrangement by Share-based Payment Award
Vested, number of units (in shares)	3,514	3,514	3,514	3,514

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Unit Based Awards - Restricted Unit Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($) $ / shares shares
Restricted unit Awards
Number of Units
Non-vested, beginning of period (in shares) | shares	273,424
Vested (in shares) | shares	(117,280)
Forfeited (in shares) | shares	(83,436)
Non-vested, end of period (in shares) | shares	114,876
Weighted Average Grant-Date Fair Value Per Unit
Non-vested, beginning of period (USD per share) | $ / shares	$ 10.52
Vested (USD per share) | $ / shares	11.96
Forfeited (USD per share) | $ / shares	13.90
Non-vested, end of period (USD per share) | $ / shares	$ 3.65
Aggregate intrinsic value, end of period | $	$ 368
Time Based Restricted Units
Number of Units
Granted (in shares) | shares	42,168
Weighted Average Grant-Date Fair Value Per Unit
Granted (USD per share) | $ / shares	$ 2.49

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Unit Based Awards - Intrinsic and Fair Value (Details) - Restricted unit Awards - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award
Aggregate intrinsic value of units vested	$ 0	$ 0	$ 257	$ 151
Fair value of units vested	$ 0	$ 0	$ 1,418	$ 1,427

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Related Party Transactions - Narrative (Details)	9 Months Ended
	Sep. 30, 2021 shares
MMGP LLC
Related Party Transaction
General partner interest percentage	2.00%
Martin Resource Management
Related Party Transaction
Common limited partner units (in shares)	6,114,532
Voting interest percentage	15.80%
Martin Resource Management | Martin Resource Management | MMGP Holdings, LLC
Related Party Transaction
General partner interest percentage	51.00%
Martin Resource Management | MMGP LLC
Related Party Transaction
General partner interest percentage	2.00%

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Related Party Transactions - Omnibus Agreement (Details) - Omnibus Agreement - Martin Resource Management - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jan. 01, 2021
Related Party Transaction
Non-compete restriction threshold	$ 5,000,000		$ 5,000,000
Non-compete restriction ownership option opportunity threshold minimum	5,000,000		5,000,000
Non-compete restriction ownership option opportunity threshold minimum with equity limitation	$ 5,000,000		$ 5,000,000
Equity limitation on ownership restriction percentage	20.00%		20.00%
Approved annual reimbursements for indirect expenses					$ 14,386,000
Indirect expenses reimbursed	$ 3,597,000	$ 4,103,000	$ 10,790,000	$ 12,364,000

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Related Party Transactions - Master Transportation Services Agreement (Details)	9 Months Ended
	Sep. 30, 2021
Master Transportation Services Agreement | Martin Resource Management
Related Party Transaction
Termination written notice, minimum (in days)	30 days

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Related Party Transactions - Marine Agreements (Details) - Marine Transportation Agreement - Martin Resource Management	9 Months Ended
	Sep. 30, 2021
Related Party Transaction
Automatic consecutive term renewal period (in years)	1 year
Termination written notice, minimum (in days)	60 days

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Related Party Transactions - Terminal Services Agreements (Details)	9 Months Ended
	Sep. 30, 2021
Terminal Services Agreements | Martin Resource Management
Related Party Transaction
Termination written notice, minimum (in days)	60 days

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Related Party Transactions - Other Agreements (Details) - Martin Resource Management $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2021 USD ($) bbl	Sep. 30, 2020 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2021 USD ($) bbl	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
East Texas Mack Leases
Related Party Transaction
Ownership interest (percent)	46.00%			46.00%
Operating cash flows from operating leases	$ 283	$ 173		$ 801	$ 432
Cross Tolling Agreement
Related Party Transaction
Production minimum per day (in bbl) | bbl	6,500			6,500
Capital recovery fee reimbursement, expired						$ 2,586	$ 2,088
Annual escalation benchmark percentage	3.00%			3.00%
Cross Tolling Agreement | Scenario, Forecast
Related Party Transaction
Annual revenue decrease from contract expiration			$ 2,145

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Related Party Transactions - Schedule of the Impact of Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Operating expenses:
Operating expenses	$ 20,088	$ 18,915	$ 58,046	$ 60,126
Related Party
Revenues:
Revenue from related parties	21,498	21,485	61,457	64,718
Cost of products sold:
Cost of products sold	9,700	6,815	26,242	22,162
Operating expenses:
Operating expenses	20,088	18,915	58,046	60,126
Selling, general and administrative:
Selling, general and administrative	7,659	8,356	23,624	24,723
Related Party | Indirect, including overhead allocation
Selling, general and administrative:
Selling, general and administrative	3,660	4,153	11,011	12,465
Related Party | Terminalling and storage
Revenues:
Revenue from related parties	15,866	15,902	46,741	47,718
Operating expenses:
Operating expenses	4,284	4,300	12,513	13,292
Selling, general and administrative:
Selling, general and administrative	878	863	2,530	2,536
Related Party | Transportation
Revenues:
Revenue from related parties	5,564	5,514	14,463	16,801
Operating expenses:
Operating expenses	13,949	13,009	40,652	41,950
Selling, general and administrative:
Selling, general and administrative	1,732	1,803	5,103	5,459
Related Party | Natural gas liquids
Operating expenses:
Operating expenses	534	486	1,511	1,481
Selling, general and administrative:
Selling, general and administrative	576	772	2,660	2,009
Related Party | Product sales
Revenues:
Revenue from related parties	68	69	253	199
Related Party | Sulfur services
Revenues:
Revenue from related parties	28	5	87	33
Cost of products sold:
Cost of products sold	2,441	2,512	7,379	7,833
Operating expenses:
Operating expenses	1,321	1,120	3,370	3,403
Selling, general and administrative:
Selling, general and administrative	813	765	2,320	2,254
Related Party | Terminalling and storage
Revenues:
Revenue from related parties	40	64	166	166
Cost of products sold:
Cost of products sold	$ 7,259	$ 4,303	$ 18,863	$ 14,329

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Business Segments - Narratives (Details)	9 Months Ended
	Sep. 30, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	4

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Business Segments - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information
Total revenue	$ 211,258	$ 152,533	$ 596,525	$ 492,054
Depreciation and Amortization	13,945	15,276	42,862	45,858
Operating Income (Loss) after Eliminations	8,153	11,013	31,472	34,573
Capital Expenditures and Plant Turnaround Costs	4,297	5,214	14,409	21,983
Terminalling and storage
Segment Reporting Information
Total revenue	49,578	46,365	131,666	141,207
Depreciation and Amortization	7,049	7,294	21,150	22,022
Operating Income (Loss) after Eliminations	3,269	6,426	8,153	10,153
Capital Expenditures and Plant Turnaround Costs	2,087	1,863	6,258	8,885
Transportation
Segment Reporting Information
Total revenue	39,079	31,938	103,820	102,364
Depreciation and Amortization	3,710	4,412	12,039	13,020
Operating Income (Loss) after Eliminations	430	(2,673)	(7,782)	(9,772)
Capital Expenditures and Plant Turnaround Costs	1,086	1,785	2,702	6,483
Sulfur services
Segment Reporting Information
Total revenue	30,837	21,880	103,958	83,623
Depreciation and Amortization	2,594	2,953	7,882	8,978
Operating Income (Loss) after Eliminations	4,534	7,115	21,136	29,787
Capital Expenditures and Plant Turnaround Costs	1,104	1,393	4,968	6,267
Natural gas liquids
Segment Reporting Information
Total revenue	91,764	52,350	257,081	164,860
Depreciation and Amortization	592	617	1,791	1,838
Operating Income (Loss) after Eliminations	3,994	4,668	21,738	17,661
Capital Expenditures and Plant Turnaround Costs	20	173	481	348
Operating Revenues
Segment Reporting Information
Total revenue	216,395	158,130	612,509	510,944
Operating Revenues | Terminalling and storage
Segment Reporting Information
Total revenue	51,226	48,188	136,584	146,298
Operating Revenues | Transportation
Segment Reporting Information
Total revenue	42,568	35,712	114,886	116,145
Operating Revenues | Sulfur services
Segment Reporting Information
Total revenue	30,837	21,880	103,958	83,636
Operating Revenues | Natural gas liquids
Segment Reporting Information
Total revenue	91,764	52,350	257,081	164,865
Intersegment Revenues Eliminations
Segment Reporting Information
Total revenue	(5,137)	(5,597)	(15,984)	(18,890)
Intersegment Revenues Eliminations | Terminalling and storage
Segment Reporting Information
Total revenue	(1,648)	(1,823)	(4,918)	(5,091)
Intersegment Revenues Eliminations | Transportation
Segment Reporting Information
Total revenue	(3,489)	(3,774)	(11,066)	(13,781)
Intersegment Revenues Eliminations | Sulfur services
Segment Reporting Information
Total revenue	0	0	0	(13)
Intersegment Revenues Eliminations | Natural gas liquids
Segment Reporting Information
Total revenue	0	0	0	(5)
Indirect selling, general and administrative
Segment Reporting Information
Depreciation and Amortization	0	0	0	0
Operating Income (Loss) after Eliminations	(4,074)	(4,523)	(11,773)	(13,256)
Capital Expenditures and Plant Turnaround Costs	$ 0	$ 0	$ 0	$ 0

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Business Segments - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Total assets:
Total assets	$ 614,238	$ 579,638
Terminalling and storage
Total assets:
Total assets	249,723	252,794
Transportation
Total assets:
Total assets	142,767	151,953
Sulfur services
Total assets:
Total assets	97,986	94,154
Natural gas liquids
Total assets:
Total assets	$ 123,762	$ 80,737

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Recurring | Level 2 | Commodity Contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Commodity derivative contracts, net	$ (5,049)	$ (207)
Nonrecurring | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	341,594	369,213
Nonrecurring | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	357,923	372,487
Nonrecurring | 2021 Notes | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	0	28,790
Nonrecurring | 2021 Notes | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	0	28,581
Nonrecurring | 2024 Notes | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	51,031	50,173
Nonrecurring | 2024 Notes | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	55,126	55,214
Nonrecurring | 2025 Notes | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	290,563	290,250
Nonrecurring | 2025 Notes | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Notes payable	$ 302,797	$ 288,692

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Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 954	$ 373	$ 2,111	$ 1,510

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Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Tax Contingency
Income tax expense	$ 954	$ 373	$ 2,111	$ 1,510
Deferred income tax expense			1,419	1,202
MTI
Income Tax Contingency
Income tax expense	$ 895	$ 225	$ 1,871	$ 1,162
Effective income tax rate (percentage)	23.42%	45.72%	29.51%	80.42%
Current federal income tax expense (benefit)	$ 153	$ 0	$ 276	$ (174)
State income tax expense (benefit)	81	41	177	134
Deferred income tax expense	661	$ 183	1,419	$ 1,202
Deferred tax asset	$ 20,834		$ 20,834		$ 22,253

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Subsequent Events (Details) - Subsequent Event	Oct. 20, 2021 $ / shares
Subsequent Event
Dividends declared (USD per share)	$ 0.005
Estimated annualized dividends (USD per share)	$ 0.020