exv99w1

Exhibit 99.1

MARTIN MIDSTREAM PARTNERS REPORTS
2007 SECOND QUARTER FINANCIAL RESULTS

KILGORE, Texas, August 7, 2007 /PRNewswire-FirstCall via COMTEX/ — Martin Midstream Partners L.P. (Nasdaq: MMLP) announced today its financial results for the second quarter ended June 30, 2007.

MMLP reported net income for the second quarter of 2007 of $5.9 million, or $0.41 per limited partner unit. This compared to net income for the second quarter of 2006 of $5.2 million, or $0.40 per limited partner unit. Revenues for the second quarter of 2007 were $162.3 million compared to $133.1 million for the second quarter of 2006. Second quarter 2007 net income was negatively impacted by a $0.3 million non-cash mark-to-market adjustment on derivatives. This non-cash adjustment resulted in a reduction to net income of approximately $0.02 per limited partner unit.

MMLP reported net income for the six months ended June 30, 2007 of $11.7 million, or $0.82 per limited partner unit. This compared to net income for the six months ended June 30, 2006 of $9.5 million, or $0.72 per limited partner unit. Revenues for the six months ended June 30, 2007 were $318.1 million, compared to revenues of $279.9 million for the six months ended June 30, 2006.

The Company’s distributable cash flow for the second quarter of 2007 was $11.1 million. The Company’s distributable cash flow for the six months ended June 30, 2007 was $23.1 million. Distributable cash flow is a non-GAAP financial measure which is explained in greater detail below under “Use of Non-GAAP Financial Information.” The Company has also included below a table entitled “Distributable Cash Flow” in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measurement.

MMLP’s second quarter 2007 financial statements are included with this press release. These financial statements should be read in conjunction with the information contained in the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 7, 2007.

Ruben Martin, President and Chief Executive Officer of Martin Midstream GP LLC, the general partner of Martin Midstream Partners, said “We continue to be pleased with the strength of our diversified business model. As in the previous two quarters, we benefited from strong performances in the majority of our business lines, particularly the Natural Gas Services, Marine Transportation and Fertilizer segments. As a result, we have increased our distributions by approximately 8% year-to-date while growing our distribution coverage ratios. In addition, we are just beginning to realize the benefits from over $70 million of recent investments including our Woodlawn acquisition, our sulfuric acid plant and the Waskom expansion”

Investors’ Conference Call

An investor’s conference call to review the second quarter results will be held on Wednesday, August 8, 2007, at 8:00 a.m. Central Time. The conference call can be accessed by calling (877) 407-9205. An audio replay of the conference call will be available by calling (877) 660-6853 from 9:00 a.m. Central Time on August 8, 2007 through 11:59 p.m. Central Time on August 16, 2007. The access codes for the conference call and the audio replay are as follows: Account No. 286; Conference ID No. 250924. The audio replay of the conference call will also be archived on the Company’s website at www.martinmidstream.com.

During this conference call, management will discuss certain non-generally accepted accounting principle financial measures for which reconciliations to the most directly comparable GAAP financial measures are provided herein.

About Martin Midstream Partners

Martin Midstream Partners is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership’s primary business lines include: terminalling and storage services for petroleum products and by-products; natural gas services; marine transportation services for petroleum products and by-products; sulfur gathering, processing and distribution; and fertilizer manufacturing and distribution.

Additional information concerning the Company is available on the Company’s website at www.martinmidstream.com.

Forward-Looking Statements

Statements about Martin Midstream Partners’ outlook and all other statements in this release other than historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and all references to financial estimates rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside its control, which could cause actual results to differ materially from such statements. While MMLP believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties and anticipating or predicting certain important factors. A discussion of these factors, including risks and uncertainties, is set forth in the Company’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission. Martin Midstream Partners disclaims any intention or obligation to revise any forward-looking statements, including financial estimates, whether as a result of new information, future events, or otherwise.

Use of Non-GAAP Financial Information

MMLP reports its financial results in accordance with generally accepted accounting principles. However, from time to time, the Partnership uses certain non-GAAP financial measures such as distributable cash flow because the Partnership’s management believes that this measure may provide users of this financial information with meaningful comparisons between current results and prior reported results and a meaningful measure of the Partnership’s cash

available to pay distributions. Distributable cash flow should not be considered an alternative to cash flow from operating activities or any other measure of financial performance in accordance with generally accepted accounting principles in the United States. Distributable cash flow is not intended to represent cash flows for the period, nor are they presented as an alternative to income from continuing operations. Furthermore, it should not be seen as a measure of liquidity or a substitute for comparable metrics prepared in accordance with GAAP. This information may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. Accordingly, MMLP has presented herein, and will present in other information it publishes that contains this non-GAAP financial measure, a reconciliation of this measure to the most directly comparable GAAP financial measure.

The Company has included below a table entitled “Distributable Cash Flow” in order to show the components of this non-GAAP financial measure and its reconciliation to the most comparable GAAP measure. MMLP calculates distributable cash flow as follows: net income (as reported in Statements of Operations), plus depreciation and amortization and amortization of deferred debt issuance costs (as reported in Statements of Cash Flows), plus (less) deferred taxes, plus distribution equivalents from unconsolidated entities (as described below), plus invested cash in unconsolidated entities (as described below), less equity in earnings of unconsolidated entities (as reported in Statements of Operations), plus (less) non-cash mark-to-market on derivatives (as reported in Statements of Cash Flows), less maintenance capital expenditures (as reported under the caption “Liquidity and Capital Resources” in MMLP’s Quarterly Report on Form 10-Q filed on August 7, 2007), plus unit-based compensation (as reported in Statements of Capital).

MMLP’s distribution equivalents from unconsolidated entities is calculated as distributions from unconsolidated entities (as reported in Statements of Cash Flows) plus return of investments from unconsolidated entities (as reported in Statements of Cash Flows), plus distributions in-kind from equity investments (as reported in Statements of Cash Flows). For the quarter ended June 30, 2007, MMLP’s distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.3 million, $1.6 million and $2.7 million, respectively. For the six months ended June 30, 2007, MMLP’s distributions from unconsolidated entities, return of investments from unconsolidated entities and distributions in-kind from equity investments were $0.5 million, $2.7 million and $4.5 million, respectively.

MMLP’s invested cash in unconsolidated entities is calculated as investments in unconsolidated entities (as reported in Statements of Cash Flows), plus expansion capital expenditures in unconsolidated entities (as reported under the caption “Liquidity and Capital Resources” in MMLP’s Quarterly Report on Form 10-Q filed on August 7, 2007). For the quarter ended June 30, 2007, MMLP’s investments in unconsolidated entities and expansion capital expenditures in unconsolidated entities were $1.9 million and $2.0 million, respectively. For the six months ended June 30, 2007, MMLP’s investments in unconsolidated entities and expansion capital expenditures in unconsolidated entities were $5.8 million and $6.1 million, respectively.

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Dollars in thousands)


	June 30,			December 31,
	2007			2006
	(Unaudited)			(Audited)
Assets
Cash	$	324		$	3,675
Accounts and other receivables, less allowance for doubtful accounts of $207 and $394		54,204			56,712
Product exchange receivables		2,906			7,076
Inventories		32,799			33,019
Due from affiliates		2,475			1,330
Other current assets		1,331			2,041

Total current assets		94,039			103,853


Property, plant, and equipment, at cost		392,883			323,967
Accumulated depreciation		(86,094	)		(76,122	)

Property, plant and equipment, net		306,789			247,845


Goodwill		37,405			27,600
Investment in unconsolidated entities		73,185			70,651
Other assets, net		10,617			7,512

	$	522,035		$	457,461

Liabilities and Partners’ Capital

Current installments of long-term debt	$	58		$	74
Trade and other accounts payable		63,122			53,450
Product exchange payables		7,336			14,737
Due to affiliates		5,780			10,474
Income taxes payable		461			86
Other accrued liabilities		3,723			3,876

Total current liabilities		80,480			82,697


Long-term debt		180,000			174,021
Deferred income taxes		8,896			—
Other long-term obligations		2,333			2,218

Total liabilities		271,709			258,936


Partners’ capital		250,011			198,403
Accumulated other comprehensive income		315			122

Total partners’ capital		250,326			198,525

Commitments and contingencies	$	522,035		$	457,461

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per unit amounts)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
Revenues:
Terminalling and storage	$	7,037		$	5,592		$	13,988		$	11,348
Marine transportation		15,154			10,909			29,038			20,221
Product sales:
Natural gas services		105,321			84,058			207,109			185,982
Sulfur		16,912			17,624			32,083			33,013
Fertilizer		13,441			12,071			27,650			24,096
Terminalling and storage		4,449			2,798			8,242			5,214

		140,123			116,551			275,084			248,305

Total revenues		162,314			133,052			318,110			279,874


Costs and expenses:
Cost of products sold:
Natural gas services		100,939			81,517			197,711			179,600
Sulfur		11,694			11,701			22,031			22,172
Fertilizer		10,722			10,402			22,186			21,402
Terminalling and storage		3,917			2,317			6,932			4,316

		127,272			105,937			248,860			227,490

Expenses:
Operating expenses		20,663			14,381			39,656			28,281
Selling, general and administrative		2,744			2,605			5,465			4,991
Depreciation and amortization		5,468			4,255			10,362			8,207

Total costs and expenses		156,147			127,178			304,343			268,969

Other operating income		—			—			—			853

Operating income		6,167			5,874			13,767			11,758


Other income (expense):
Equity in earnings of unconsolidated entities		2,418			2,310			4,468			4,722
Interest expense		(2,739	)		(3,018	)		(6,316	)		(6,036	)
Debt prepayment premium		—			—			—			(1,160	)
Other, net		72			82			151			251

Total other income (expense)		(249	)		(626	)		(1,697	)		(2,223	)

Net income before taxes	$	5,918		$	5,248		$	12,070		$	9,535
Income taxes		(9	)		—			340			—

Net income	$	5,927		$	5,248		$	11,730		$	9,535


General partner’s interest in net income	$	354		$	237		$	629		$	483
Limited partners’ interest in net income	$	5,573		$	5,011		$	11,101		$	9,052

Net income per limited partner unit — basic and diluted	$	0.41		$	0.40		$	0.82		$	0.72

Weighted average limited partner units — basic		13,638,101			12,682,342			13,478,271			12,491,734
Weighted average limited partner units — diluted		13,642,950			12,685,002			13,483,246			12,494,428

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CAPITAL
(Unaudited)
(Dollars in thousands)


	Partners’ Capital
														Accumulated
														Other
											General			Comprehensive
	Common					Subordinated					Partner			Income
	Units		Amount			Units		Amount			Amount			Amount		Total
Balances – January 1, 2006		5,829,652	$	100,206			3,402,690	$	(5,642	)	$	1,001		$	—	$	95,565

Net Income		—		6,651			—		2,401			483			—		9,535

Follow-on public offering		3,450,000		95,273			—		—			—			—		95,273

General partner contribution		—		—			—		—			2,052			—		2,052

Unit-based compensation		3,000		9			—		—			—			—		9

Cash distributions		—		(11,325	)		—		(4,150	)		(554	)		—		(16,029	)

Change in other comprehensive income		—		—			—		—			—			481		481


Balances – June 30, 2006		9,282,652	$	190,814			3,402,690	$	(7,391	)	$	2,982		$	481	$	186,886


Balances – January 1, 2007		10,603,808	$	201,387			2,552,018	$	(6,237	)	$	3,253		$	122	$	198,525

Net Income		—		9,254			—		1,847			629			—		11,730

Follow-on public offering		1,380,000		55,934			—		—			—			—		55,934

General partner contribution		—		—			—		—			1,192			—		1,192

Unit-based compensation		3,000		26			—		—			—			—		26

Cash distributions		—		(13,361	)		—		(3,216	)		(697	)		—		(17,274	)

Change in other comprehensive income		—		—			—		—			—			193		193



Balances – June 30, 2007		11,986,808	$	253,240			2,552,018	$	(7,606	)	$	4,377		$	315	$	250,326

MARTIN MIDSTREAM PARTNERS L.P.
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)


	Six Months Ended
	June 30,
	2007			2006
Cash flows from operating activities:
Net income	$	11,730		$	9,535

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,362			8,207
Amortization of deferred debt issuance costs		540			500
Deferred taxes		(68	)		—
Gain on involuntary conversion of property, plant and equipment		—			(853	)
Equity in earnings of unconsolidated entities		(4,468	)		(4,722	)
Distributions from unconsolidated entities		486			383
Distributions in-kind from equity investments		4,541			3,915
Non-cash mark-to-market on derivatives		854			638
Other		26			57
Change in current assets and liabilities, excluding effects of acquisitions and dispositions:
Accounts and other receivables		6,769			20,500
Product exchange receivables		4,170			(4,178	)
Inventories		702			(1,607	)
Due from affiliates		(1,145	)		(11	)
Other current assets		148			(169	)
Trade and other accounts payable		6,059			(21,016	)
Product exchange payables		(7,401	)		3,546
Due to affiliates		(4,694	)		3,344
Income taxes payable		277			—
Other accrued liabilities		(892	)		(7,036	)
Change in other non-current assets and liabilities		(47	)		(109	)

Net cash provided by operating activities		28,043			10,924


Cash flows from investing activities:
Payments for property, plant and equipment		(36,772	)		(37,753	)
Acquisitions, net of cash acquired		(37,344	)		(7,451	)
Proceeds from sale of property, plant and equipment		—			770
Insurance proceeds from involuntary conversion of property, plant and equipment		—			2,541
Return of investments from unconsolidated entities		2,684			304
Investments in unconsolidated entities		(5,777	)		(1,336	)

Net cash used in investing activities		(77,209	)		(42,925	)


Cash flows from financing activities:
Payments of long-term debt		(97,287	)		(86,304	)
Proceeds from long-term debt		103,250			35,000
Payments of debt issuance costs		—			(319	)
Net proceeds from follow on public offering		55,934			95,273
General partner contribution		1,192			2,052
Cash distributions paid		(17,274	)		(16,029	)

Net cash provided by financing activities		45,815			29,673


Net decrease in cash		(3,351	)		(2,328	)
Cash at beginning of period		3,675			6,465

Cash at end of period	$	324		$	4,137

MARTIN MIDSTREAM PARTNERS L.P.
DISTRIBUTABLE CASH FLOW
(Unaudited Non-GAAP Financial Measure)
(Dollars in thousands)


	Three Months Ended			Six Months Ended
	June 30			June 30
	2007			2007
Net income	$	5,927		$	11,730
Adjustments to reconcile net income to distributable cash flow:
Depreciation and amortization		5,468			10,362
Amortization of deferred debt issuance costs		270			540
Deferred taxes		(68	)		(68	)
Distribution equivalents from unconsolidated entities ¹		4,533			7,711
Invested cash in unconsolidated entities ²		65			287
Equity in earnings of unconsolidated entities		(2,418	)		(4,468	)
Non-cash mark-to-market on derivatives		261			854
Maintenance capital expenditures ³		(2,910	)		(3,842	)
Unit-based compensation		15			26

Distributable cash flow	$	11,143		$	23,132


	Three Months Ended			Six Months Ended
	June 30			June 30
	2007			2007
¹Distribution equivalents from unconsolidated entities:
Distributions from unconsolidated entities	$	286		$	486
Return of investments from unconsolidated entities		1,559			2,684
Distributions in-kind from equity investments		2,688			4,541

Distribution equivalents from unconsolidated entities	$	4,533		$	7,711


²Invested cash in unconsolidated entities:
Investments in unconsolidated entities	$	(1,894	)	$	(5,777	)
Expansion capital expenditures in unconsolidated entities		1,959			6,064

Invested cash in unconsolidated entities	$	65		$	287


³ Maintenance capital expenditures exclude hurricane-related maintenance capital expenditures.