KILGORE, Texas, Nov 4, 2009 (GlobeNewswire via COMTEX News Network) --

Martin Midstream Partners L.P. (Nasdaq:MMLP) announced today its financial results for the third quarter ended September 30, 2009.

MMLP reported net income for the third quarter of 2009 of $4.5 million, or $0.26 per limited partner unit. This compared to net income for the third quarter of 2008 of $13.8 million, or $0.88 per limited partner unit. Revenues for the third quarter of 2009 were $151.4 million compared to $364.4 million for the third quarter of 2008. Revenues were significantly impacted by decreased commodity prices during the period compared to the same period in 2008. Third quarter 2009 net income was positively impacted by $0.5 million, or $0.04 per limited partner unit, in non-cash derivatives net gains from certain commodity and interest rate hedges that did not qualify for hedge accounting.

MMLP reported net income for the nine months ended September 30, 2009 of $17.3 million, or $1.02 per limited partner unit. This compared to net income for the nine months ended September 30, 2008 of $26.1 million, or $1.64 per limited partner unit. Revenues for the nine months ended September 30, 2009 were $436.5 million compared to $985.6 million for the nine months ended September 30, 2008. Revenues were significantly impacted by decreased commodity prices during the period compared to the same period in 2008. For the nine months ended September 30, 2009, net income was positively impacted by $5.2 million, or $0.36 per limited partner unit, in gain on sale of property, plant and equipment. For the nine months ended September 30, 2009, net income was negatively impacted by $2.3 million, or $0.16 per limited partner unit, in non-cash derivatives net losses from certain commodity and interest rate hedges that did not qualify for hedge accounting.

The Company's distributable cash flow for the third quarter of 2009 was $12.4 million. The Company's distributable cash flow for the nine months ended September 30, 2009 was $37.0 million. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under "Use of Non-GAAP Financial Information." The Company has also included below a table entitled "Distributable Cash Flow" in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measurement.

MMLP's third quarter 2009 financial statements are included with this press release. These financial statements should be read in conjunction with the information contained in the Company's Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on November 4, 2009.

In addition, MMLP announced today that it has signed a definitive agreement to acquire certain specialty lubricants processing assets ("Assets") from Cross Oil Refining & Marketing, Inc. ("Cross"), a wholly-owned subsidiary of Martin Resource Management Corporation, the owner of MMLP's general partner ("MRMC"), for total consideration of $45.0 million (the "Dropdown"). In consideration for the Cross Assets, MMLP will issue 804,721 common units and 894,134 subordinated units to MRMC at a price of $27.96 and $25.16 per limited partner unit, respectively. The common units will be entitled to receive distributions beginning in February 2010, while the subordinated units will have no distribution rights until the second anniversary of closing of the Dropdown. At the end of such second anniversary, the subordinated units will automatically convert to common units, having the same distribution rights as existing common units. The pricing of the units is based on the average closing price of MMLP's common units during the ten trading days ending November 3, 2009, with a 10% discount applied to the average in the case of the subordinated units. In connection with the Dropdown, Martin Midstream GP LLC, the general partner of MMLP, will make a capital contribution of $0.9 million to MMLP in order to maintain its 2% general partner interest in MMLP.

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