Our analysis is based on comparing Martin Midstream Partners LP with the following peers – NGL Energy Partners LP, Enterprise Products Partners L.P., Arc Logistics Partners LP, Plains All American Pipeline, L.P., Cheniere Energy, Inc., Southcross Energy Partners, L.P., Kirby Corporation, Chevron Corporation, Ferrellgas Partners, L.P. and Genesis Energy, L.P. (NGL-US, EPD-US, ARCX-US, PAA-US, LNG-US, SXE-US, KEX-US, CVX-US, FGP-US and GEL-US).
Martin Midstream Partners LP’s dividend yield is 13.79 percent and its dividend payout is 432.25 percent. This compares to a peer median dividend yield of 9.95 percent and a payout level of 132 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), MMLP-US paid a medium quality dividend, which represents a yield of 13.79% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during 3 of these years — of these 1 was high quality and 2 were medium quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), MMLP-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.04x), investing cash flow (coverage of 0.53x), issuance cash flow (coverage of -0.57x) and twelve-month prior cash (coverage of 0.00x), for a total dividend coverage of 1.00x.
MMLP-US’s issuance cash flow includes outflows from net debt repayment (coverage of -1.16x).
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||9.27||7.42||0||0||16.01||13.79|
|Dividend Payout (%)||77.21||-634.18||-644.52||562.38||449.02||432.25|
A complete list of metrics and analysis is available on the company page.
Martin Midstream Partners LP is engaged in the diverse set of operations focused primarily in the United States Gulf Coast region. The company operates through the following segments: Terminalling and Storage, Natural Gas Services, Sulfur Services and Marine Transportation. The Terminalling & Storage segment owns or operates marine shore-based terminal facilities and specialty terminal facilities located primarily in the U.S. Gulf Coast region that provides storage, refining, blending, packaging, and handling services for producers and suppliers of petroleum products and by-products, including the refining of naphthenic crude oil and the blending and packaging of various grades and quantities of industrial, commercial, and automotive lubricants and greases. The Natural Gas Services segment distributes natural gas liquids. It purchases NGLs primarily from refineries and natural gas processors. The segment stores and transports NGLs for wholesale deliveries to refineries, industrial NGL users in Texas and the Southeastern U.S, and propane retailers. The Sulfur Services segment develops an integrated system of transportation assets and facilities relating to sulfur services. It processes and distributes sulfur produced by oil refineries primarily located in the U.S. Gulf Coast region. This segment buys and sells molten sulfur on contracts that are tied to sulfur indices and tend to provide stable margins. The Marine Transportation segment operates a fleet of inland marine tank barges, inland push boats, offshore tug, and barge unit that transport petroleum products and by-products largely in the U.S. Gulf Coast region. Martin Midstream Partners was founded in 2002 and is headquartered in Kilgore, TX.
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