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awallejr (82.39)

MMLP in the right business

Recs

4

July 13, 2011 – Comments (5) | RELATED TICKERS: MMLP , PVR

I am being lazy on this one and just copying its profile.  But I think it is a worth FOOLS taking a look at.

Martin Midstream Partners L.P. provides various petroleum products and by-products, and related services in the United States Gulf Coast region. It operates in four segments: Terminalling and Storage, Natural Gas Services, Sulfur Services, and Marine Transportation.

The Terminalling and Storage segment owns or operates 27 marine shore based terminal facilities and 12 specialty terminal facilities that provide storage, processing, and handling services for producers and suppliers of petroleum products and by-products, lubricants, and other liquids, including the refining of various grades and quantities of naphthenic lubricants and related products. This segment also provides land rental services to oil and gas companies, and storage and handling services for lubricants and fuel oil.

The Natural Gas Services segment engages in gathering and processing of natural gas, and distributes natural gas liquids (NGLs). This segment owns a NGL pipeline; and three NGL supply and storage facilities, as well as has ownership interests in approximately 706 miles of gathering and transmission pipelines located in the natural gas producing regions of East Texas, Northwest Louisiana, the Texas Gulf Coast and offshore Texas, and federal waters in the Gulf of Mexico.

 The Sulfur Services segment processes and distributes sulfur produced by oil refineries that is used in the production of fertilizers and industrial chemicals. This segment own and operates six sulfur-based fertilizer production plants, and one emulsified sulfur blending plant that manufacture sulfur-based fertilizer products for wholesale distributors and industrial users; and one sulfuric acid production plant that processes molten sulfur into sulfuric acid.

The Marine Transportation segment utilizes a fleet of 44 inland marine tank barges, 18 inland push boats, and 4 offshore tug barge units that transport petroleum products and by-products.

It currently sells for $38.93 and pays a distribution of $3.05.  I own it in real life and while I have a strong capital gains profit (got it on the cheap during the crash), the distributions are still too sweet to sell.  The schedule K-1s are a pain but turbo tax really does help make it easy once you figure it out.

5 Comments – Post Your Own

#1) On July 13, 2011 at 11:43 PM, ajm101 (33.76) wrote:

Sweet!  I'm glad someone else is in MMLP.  I think I made a post about them mid-2008... my thesis wasn't great in retrospect, but better to be lucky than good, i guess.

Good writeup.

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#2) On July 14, 2011 at 12:57 AM, awallejr (82.39) wrote:

Actually caught Cramer's show tonight and ironically he was talking about barge companies.  This one kind of falls into that category but simply pays a sweet distribution. And yeah timing is everything too heheh.  I got it in the $15s and I tend to add a little here and there on pullbacks.  It trades on light volume so use limit orders.

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#3) On July 15, 2011 at 12:28 AM, awallejr (82.39) wrote:

I actually suggested this and PVR back in October 2008, the month Cramer now claims he told people to "sell everything" even tho he didn't.  It is still a stock worth buying but it seems too few people are looking at it by virtue of the recs ;(

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#4) On July 15, 2011 at 9:24 AM, ajm101 (33.76) wrote:

Okay, I have to go and embarass myself now:  http://caps.fool.com/Blogs/a-new-investing-theme-for-me/49327 (May '08)

I remember it was because a Barclay's (Lehmans?) research note on scarcity/price increases of sulfuric acid and the effect on copper prices.  MMLP was the best sulfur play I could find.  The idea of shale gas production as a positive never even entered my head.

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#5) On August 09, 2011 at 1:06 PM, Welshdog (< 20) wrote:

I too buy on pullbacks, like yesterday.  I own it for the divs, but love it for the value.

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