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    Patrick John Fitzgerald • Baird

    Patrick John Fitzgerald is a Managing Director and High Yield / Distressed Analyst at Baird, specializing in high-yield corporate credit research. He provides coverage on companies with distressed debt profiles and leads credit analysis efforts across a broad range of sectors, focusing particularly on corporate issuers in high-yield markets. With extensive experience in the industry, Fitzgerald has developed a reputation for his analytical rigor and insightful credit recommendations, and he joined Baird after building his career in high-yield and distressed credit analysis at other leading investment firms. He holds relevant securities licenses and is registered with FINRA, underscoring his professional credentials within the industry.

    Patrick John Fitzgerald's questions to Martin Midstream Partners LP (MMLP) leadership

    Patrick John Fitzgerald's questions to Martin Midstream Partners LP (MMLP) leadership • Q2 2024

    Question

    Patrick John Fitzgerald of Baird questioned the expected financial returns from the additional investment in the fertilizer business and asked for a detailed breakdown of the ELSA project's ramp-up, including the expected EBITDA contribution over time, remaining CapEx, and the mechanics of the cash payments.

    Answer

    COO Randall Tauscher projected a $600,000 to $800,000 annual EBITDA increase from the fertilizer storage investment, expected to begin in Q4. For the ELSA project, Tauscher detailed three revenue streams: a quarterly reservation fee of approximately $900,000 starting in October, a processing fee that will ramp with sales in late 2024/early 2025, and a share of the venture's profits. He anticipates a total return of $5-6 million on a total investment of $26-27 million. Executive Sharon Taylor added that the $6.5 million JV contribution was made in Q2 and approximately $3 million in CapEx remains for the related oleum tower project.

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    Patrick John Fitzgerald's questions to Martin Midstream Partners LP (MMLP) leadership • Q4 2023

    Question

    Asked for a detailed breakdown of the high maintenance CapEx forecast for 2024 and clarification on how new equipment is classified. He also inquired about the contractual nature and forecasting methodology for the land transportation business.

    Answer

    Executives explained that 55% of the high maintenance CapEx is due to a large number of marine vessels requiring dry-docking and scheduled plant turnarounds. New trucks are acquired via operating leases, so their cost is an operating expense, not CapEx. The land transportation forecast is based on historical consistency in miles driven and an estimated revenue per mile, relying on strong customer relationships rather than long-term contracts.

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