Martin Midstream Partners LP (NASDAQ:MMLP) Q4 2019 Earnings Conference Call - Final Transcript
Jan 29, 2020 • 09:00 am ET
Ladies and gentlemen, thank you for standing by. And welcome to the Martin Midstream Partners Fourth Quarter 2019 Earnings Conference Call Webcast. [Operator Instructions]
I would now like to hand the conference over to your speaker today, Sharon Taylor, Director of Finance and Investor Relations. Please go ahead, ma'am.
Sharon L. Taylor
Thank you, Sydney. Good morning, everyone. And welcome to the Martin Midstream Partners conference call to discuss fourth quarter 2019 results. In the room with me is Ruben Martin, President and Chief Executive Officer; Bob Bondurant, Chief Financial Officer; Danny Cavin, Director of FP&A; and David Cannon, Director of Financial Reporting.
Before we get started, I will remind you that management may be making forward-looking statements as defined by the SEC, such statements are based on our current judgments regarding the factors that could impact the future performance of Martin, that actual outcomes could be materially different. You should review the risk factors and other information discussed in our filings with the SEC and form your own opinion about Martin's future performance.
We will discuss non-GAAP financial measures on today's call. Please refer to the table in our earnings press release posted in the Investor Relations section of our website to find a reconciliation of non-GAAP financial measures referenced in today's call to their corresponding depth measures.
I will now turn the call over to Mr. Ruben Martin.
Ruben S. Martin
Thank you, Sharon. Good morning. As you saw in our press release issued yesterday we reset our per unit distribution to $0.25 annually, which equates to a quarter -- quarterly unit distribution of $6.25 per unit. Over the last 18 months, we have announced and executed on a number of strategic goals aimed at strengthening the balance sheet reducing leverage and increasing coverage. While we have made progress toward these targets, we are not where we want to need to be. Therefore, we are taking this step to ensure we meet our objectives in the not so distant future.
In addition to resetting the distribution, we also have implemented a distribution policy, that quite simply states that the distribution remained where it is as long as our leverage exceeds four times. Further, once our leverage is below four times, we will not consider an increase unless our coverage is above 1.3 times calculated with the increase.
Looking at our 2020 guidance, we currently expect to maintain the quarterly distribution at this level throughout the year. As a company, we are dedicated to optimizing our current assets to enhance profitability and provide safe reliable operations for our employees and our customers. We will continue to focus on capital discipline and seek out ways to maximize efficiencies to provide value to our unitholders and ensure that we have the ability to capitalize on opportunities such as those at our Harbor Island and Beaumont Terminals facilities.
So now I will turn it over to Bob Bondurant to discuss our fourth quarter and 2019 results. Thank you.
Robert D. Bondurant
Okay. Thanks, Ruben. I'd like to discuss our fourth quarter performance,