Martin Midstream Partners: Life After The Failed Acquisition

DT Analysis
11K Followers
(13min)

Summary

  • To the surprise of investors, the acquisition of Martin Midstream Partners was called off.
  • Despite the turbulence this caused to their unit price, at least their underlying cash flow performance was solid during 2023 and 2024.
  • Looking ahead into 2025, they have strong prospects for higher distributions thanks to their outlook for relatively significant free cash flow.
  • Their units trade with an extremely high forward free cash flow yield of 20%+ on current cost, which I believe presents very desirable value.
  • After selling my investment following the now-failed acquisition bid, I will look to re-enter my former position soon.

Overhead view of young Asian women managing home finance using laptop & smartphone. She is working with household utility bill and calculating expenses at home.

Images By Tang Ming Tung

Background

The turbulence for Martin Midstream Partners (NASDAQ:MMLP) and their unitholders just does not seem to end. After suffering throughout the COVID-19 crash that started five years ago and ultimately saw their distributions being

This article was written by

11K Followers
I primarily focus on income investments, as well as deep value and contrarian opportunities.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MMLP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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