Martin Midstream Partners Could Generate $30 Million In 2025 Free Cash Flow

(8min)

Summary

  • Martin Midstream Partners terminated its agreement to be acquired by Martin Resource Management Corporation for $4.02 per unit in cash.
  • It should be able to generate a substantial (estimated at $30+ million) in 2025 free cash flow as a standalone company.
  • 2025 results will be boosted by a full-year's worth of contributions from its electronic level sulfuric acid plant joint venture.
  • Debt reduction may also allow Martin to refinance its 11.5% notes at a significantly lower interest rate in the future.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Massive mound of industrial sulfur at worksite

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Martin Midstream Partners L.P. (NASDAQ:MMLP) terminated its agreement to be acquired by Martin Resource Management Corporation [MRMC]. This was due to opposition from large unitholders who believed that MRMC's $4.02 per unit offer undervalued the company.

I, personally, believed

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.

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