<SUBMISSION>
<ACCESSION-NUMBER>0000950134-07-017478
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20070808
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20070809
<DATE-OF-FILING-DATE-CHANGE>20070809
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>MARTIN MIDSTREAM PARTNERS LP
<CIK>0001176334
<ASSIGNED-SIC>5171
<IRS-NUMBER>050527861
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-50056
<FILM-NUMBER>071038706
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>4200 STONE ROAD
<CITY>KILGORE
<STATE>TX
<ZIP>75662
<PHONE>9039836200
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d48978e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 or 15(d)<BR>
of the Securities Exchange Act of 1934</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Date of report (date of earliest event reported): August&nbsp;8, 2007</B>
</DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>MARTIN MIDSTREAM PARTNERS L.P.</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of Registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>DELAWARE</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-50056</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>05-0527861</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State of incorporation <BR>
or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission file number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. employer identification number)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>4200 STONE ROAD <BR>
KILGORE, TEXAS</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>75662</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">(Zip code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Registrant&#146;s telephone number, including area code: (903)&nbsp;983-6200
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(Former name or former address, if changed since last report)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (<I>see </I>General Instruction
A.2. below):
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link2 "Item&nbsp;7.01. Regulation&nbsp;FD Disclosure." -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7.01. Regulation&nbsp;FD Disclosure.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August&nbsp;8, 2007, Martin Midstream Partners L.P. (the &#147;Partnership&#148;) held an investors&#146;
conference call. Furnished as Exhibit&nbsp;99.1 is a copy of the transcript of the Partnership&#146;s
presentation during that call and the questions and answers following the presentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item
7.01 and in the attached Exhibit is deemed to be &#147;furnished&#148; and shall not be deemed to be &#147;filed&#148;
for purposes of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements about the Partnership&#146;s outlook and all other statements contained in the Exhibit
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 of the Partnership&#146;s control,
which could cause actual results to differ materially from such statements. While the Partnership
believes that the assumptions concerning future events are reasonable, it cautions that there are
inherent difficulties in anticipating or predicting certain important factors. A discussion of
these factors, including risks and uncertainties, is set forth in the Partnership&#146;s annual and
quarterly reports filed from time to time with the Securities and Exchange Commission. The
Partnership 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.
</DIV>
<!-- link2 "Item&nbsp;9.01. Financial Statements and Exhibits." -->

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;</B><u><B>Exhibits</B></u>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with General Instruction B.2 of Form 8-K, the information set forth in
the attached Exhibit is deemed to be &#147;furnished&#148; and shall not be deemed to be &#147;filed&#148; for purposes
of the Exchange Act.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><u>NUMBER</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><u>DESCRIPTION</u></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transcript of the Investors&#146; Conference Call.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MARTIN MIDSTREAM PARTNERS L.P.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Martin Midstream GP LLC,
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Its General Partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:  August 9, 2007&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Robert D. Bondurant
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Robert D. Bondurant,&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President and<BR>

Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 "INDEX TO EXHIBITS" -->

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO EXHIBITS</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><u>NUMBER</u></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left"><u>DESCRIPTION</u></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transcript of the Investors&#146; Conference Call.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d48978exv99w1.htm
<DESCRIPTION>TRANSCRIPT OF THE INVESTORS' CONFERENCE CALL
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Transcript of<BR>
Martin Midstream Partners<BR>
Second Quarter 2007 Earnings Conference Call<BR>
August&nbsp;9, 2007
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Greetings, and welcome to the Martin Midstream Partners second quarter 2007 earnings conference
call. At this time, all participants are in a listen-only mode. A brief question-and-answer
session will follow the formal presentation. If anyone should require operator assistance during
the conference, please press *0 on your telephone keypad. As a reminder, this conference is being
recorded. It is now my pleasure to introduce your host, Mr.&nbsp;Bob Bondurant, CFO. Thank you Mr.
Bondurant, you may begin.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Thank you Jerry. To let everyone know who else is on the call today, we have Ruben Martin, CEO and
Director of the Company. Before we get started with my business comments, I need to make this
disclaimer.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certain statements made during this
conference call may be forward-looking statements relating to
financial forecasts, future performances, our ability to make distributions to unitholders, as well
as any other statements that are not historical facts. The words &#147;anticipate,&#148; &#147;estimate,&#148;
&#147;expect,&#148; and similar expressions are intended to be among the statements that identify
forward-looking statements made during the call. We report our financial results in
accordance with generally accepted accounting principals and use
certain non-GAAP financial measures
within the meaning of the SEC Regulation G, such as distributable cash flow and EBITDA. We use
these measures because management believes it might provide users of
our financial information,
with meaningful comparisons between current results and prior reported results, and it can be a
meaningful measure of the partnerships cash available to pay distributions. Distributable cash
flow should not be considered as an alternative to cash flow from
operating activities. Furthermore, distributable cash flow is not a measure of financial performance or liquidity under
GAAP, or a substitute for comparable measures provided in accordance with GAAP, and should not be
considered in isolation as an indicator of our performance. We also included in our press release
issued yesterday, a reconciliation of distributable cash flow to the most directly comparable GAAP
financial measures. Both the earnings press release and our second quarter 10-Q are available at
our website at <U>www.martinmidstream.com</U>.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With that out of the way, I would like to comment on our second quarter performance. For the
second quarter we had net income of $5.9&nbsp;million or $.41 per limited partner unit. Even though
this was a strong earnings performance in the second quarter, earnings were negatively impacted by
a $.02 per limited partner unit as a result of a noncash mark-to-market charge relating to
commodity derivative instruments. So without this noncash charge, our earnings would have been $.43
per limited partner unit. Most importantly, our distributable cash flow for the second quarter was
$11.2&nbsp;million, and our rolling 12 months distributable cash flow has been $40.1&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our second quarter distributable cash flow coverage was 1.27 times, and our rolling four quarter
distributable cash flow coverage is 1.2 times. This continued strong distributable cash flow
performance allowed us to increase our August&nbsp;15 distribution by $.02 per quarter or $.08 per year.
We have grown our distributions by 8% year-to-date, while increasing our overall distribution
coverage.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Now, I would like to discuss in greater
detail our performance by segments, comparing the second
quarter of 2007 to the first quarter of 2007. For the second quarter, our terminal operating income
was $2.6&nbsp;million. This compared to $2.9&nbsp;million for the first quarter. When you add back the
depreciation increase of $126,000, our cash flow was down only by $150,000. This decrease was
primarily the result of decreased drilling mud commissions, as we had a temporary reduction in
offshore drilling rigs operating out of our marine shore bases. The drilling activity in our shore
bases will pick up in the last half of the year. New business
opportunities, primarily Shell&#146;s
Perdido deep water project, will begin operations out of our larger terminals beginning in the
third quarter. As a result, we should see improvement in our terminal segment operating cash flow
in the last half of the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our natural gas services segment: Operating
income in the second quarter was $464,000, compared
to $1.9&nbsp;million in the first quarter. The decrease was expected as there is seasonality in our
natural gas services business, primarily in the wholesale propane distribution segment. Because of
this, I believe that it is more appropriate to analyze this segment, by comparing the second
quarter of 2007 to the second quarter of 2006. Again, operating income was $464,000 in the second
quarter, compared to a negative $44,000 in last year&#146;s second quarter. This increase was primarily
a result of our Woodlawn acquisition, which closed May&nbsp;2, and to a lesser extent a 17% improvement
in our NGL margins. To refresh everyone&#146;s memory, we purchased Woodlawn for $32.6&nbsp;million. On an
annual basis, we believe this transaction will add an incremental $4
to $5&nbsp;million of cash flow.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In addition to our natural gas services operating
income, we also have earnings from unconsolidated
entities, which is primarily our 50% owned Waskom gas processing plant. During the second quarter,
these earnings were $2.4&nbsp;million, compared to first
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">quarter earnings of $2.1&nbsp;million. We benefited from the Waskom expansion, as we completed the plant
expansion in June, and are currently processing 260 to 270&nbsp;million cubic feet per day, up from 150
million cubic feet per day when we bought the company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moving to our marine transportation segment: We had operating income of $2.1&nbsp;million in the
second quarter compared to $2&nbsp;million in the first quarter. We had a strong revenue performance
from our offshore segment, as revenues increased $0.8&nbsp;million in our offshore business and $0.2
million in our inland business. Offsetting this revenue increase was a similar increase in
operating expenses, primarily crew wages and repairs and maintenance. The crew wage increases have
allowed us to keep boats fully crewed, and except for the time in the shipyard, to keep our vessels
fully utilized.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Looking forward, we continue to see tight market conditions in our marine transportation marketing
area, so we anticipate a continued strong cash flow performance from our marine transportation
segment throughout the remainder of 2007.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moving to our sulfur segment: We had operating income of $425,000 in the second quarter, compared
to an operating loss of $262,000 in the first quarter. Although this is a definite improvement
over the first quarter, in the second quarter we had not completely recovered from our sulfur
marine transportation inefficiencies caused by downtime on the Martin
Explorer, our offshore tug,
and the Martin Express, our inland tug. The good news is that all the marine sulfur vessels are
now operating, and as a result our sulfur distribution system is operating efficiently for the
first time since the third quarter of 2006. As a result, we believe operating cash flows should
return to similar levels of a year ago, when cash flow was $4.2&nbsp;million for the first six months of
2006.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because of the seasonality in the fertilizer segments,
a comparison of the second quarter to the
previous year&#146;s second quarter is most appropriate. The fertilizer segment had an operating income
of $1.4&nbsp;million in this year&#146;s second quarter, compared to $0.8&nbsp;million in last year&#146;s second
quarter. We have continued to see improved margins and demand for our products as agricultural
commodity prices were much improved over a year ago. Our margins improved 34% compared to a year
ago, and our volume demand has increased by 5%.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Looking forward, the third quarter is typically our slowest quarter in the fertilizer business.
However, this year, we expect to benefit from our new $25&nbsp;million sulfuric acid plant that became
operational in late July. As we have talked about before, we will consume about one-third of the
sulfuric acid plant&#146;s production at our Plainview facility, as sulfuric acid is a primary feedstock
in our fertilizer business. The balance of the production, approximately 100,000 tons, will be
marketed primarily to small commercial and industrial users, as well as to copper mines for use in
their leeching processes. As you may know, sulfuric acid is in
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">very tight supply, due to worldwide demand, so we believe this plant will have no trouble meeting
our previously disclosed cash flow multiple of four to six times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As all of you know, we raised approximately $56&nbsp;million in a follow-on equity offering in May that was
used to pay-down debt. As a result, debt to total capitalization is a very conservative 42%.
Also, as a result of this deleveraging, we will lower our interest rate to LIBOR plus 175 beginning
in the fourth quarter. During the third quarter, our interest rate will be LIBOR plus 200. As of
today, we have $195&nbsp;million of borrowings against our credit facility. Of this, $195&nbsp;million of
debt, we have hedged $145&nbsp;million at a LIBOR rate of 5% plus our spread.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moving to maintenance capital expenditures: Through the first six months, our maintenance capital
expenditures have been $3.9&nbsp;million. We estimate for the year, that our maintenance capital
expenditures will be somewhere between $8 and $9&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">So to summarize, we believe the
outlook is quite strong for Martin Midstream. We have new business
coming online in our terminal segment. Our marine transportation
segment&#146;s assets remain fully
utilized. Our natural gas services segment will see the benefit of our Waskom expansion and the
Woodlawn acquisition. Our sulfur segment has its marine transportation problems behind them. Our
fertilizer segment has its sulfuric acid plant up and running. Furthermore, our debt will benefit
from a lower pricing grid of LIBOR plus 175 beginning in the fourth quarter. Lastly, we have grown
our distribution the last three consecutive quarters, and we still have very strong distribution
coverage on a trailing 12&nbsp;months of 1.2 times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">That concludes my formal comments on our second quarter performance, and now we would like to open
the floor to questions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator</B></U>:
</DIV>


<DIV align="left" style="font-size: 10pt">Thank you. We will now be conducting a question-and-answer session. If you would like to ask a
question, please press *1 on your telephone keypad. A confirmation tone will indicate your line
is in the question queue. You may press *2 if you would like to remove your question from the
queue. For participants using speaker equipment, it may be necessary to pick up your handset
before pressing the * key. One moment please while we poll for questions.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Thank you, our first question is from Mr.&nbsp;Blaschke from RBC Capital. Please proceed with your
question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Yes, good morning. Just wanted to ask if we could get a little detail on expansion and
acquisition capital?
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO </B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Well, currently we have, like I mentioned, $195&nbsp;million of debt on our facility. Our facility is a
$250&nbsp;million facility, so we have approximately $55&nbsp;million of available capital under our line.
We do have an accordion to ramp-up another $75&nbsp;million, and that is kind of our position today.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Okay. Any new projects?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">We have various, not large, terminal projects going on. Building tanks here and there, you know,
each individual one might be somewhere between $3 and
$5&nbsp;million. We probably have four or five of
those going on. Then just some odds and ends. And in Marine, we have some expansion going on.
I&#146;m not sure of the total amount of the dollars on there, but we have a little bit of that going on
as well. But what our facility is right now, we can handle all of that. Again, we do have our
accordion of $75&nbsp;million if we want to go beyond that.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:
Okay. And are you expecting to spend the full $75 million this year, or...?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">I think there is a chance, not by the end of this year, but probably within the next 12&nbsp;months that
could happen.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Okay. And maintenance CapEx for the year, any change there?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">No, like I said in my report, we anticipate by the end of the year, we&#146;ll be somewhere between $8
and $9&nbsp;million.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Okay.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Total for the year, which we have spent approximately $4&nbsp;million the first six months. But we have
an incremental $4 to $5&nbsp;million the last six months.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Sounds good, thanks guys.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Thank you. Our next question comes from Mr.&nbsp;Londe with AG Edwards. Please proceed with your
question.</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Thank you. Curious, from the standpoint of refinery utilization and trends, do you see
any changes there affecting you over the next couple quarters?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">This is Ruben. Now we&#146;ve been through some pretty good turnarounds in the first quarter, you know,
that affected our sulfur business to some degree, but everything
seems to be running in that
segment as well. Our marine transportation is booked up anyway, so even a small adjustment in
refinery utilization would not affect us to any degree.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: The asphalt market, is that still pretty strong?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Yeah, I think we are finally. After massive amounts of rain and so forth, we are seeing a good
asphalt season here, that is finally kicking in. But you know, it is a small portion of our
business, or our terminalling business, so hopefully our terminalling segments will be not only
enhanced by the mud commissions in the Perdido Bay project, but the asphalt through-put at this
time of the year.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: You know, Waskom you mentioned what your current through-put is, what is the maximum
capacity you can operate there, and what are the margins like? I know the margins are pretty good
in processing right now.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Yeah, we are pretty close to our maximum. We are still doing some tweaks on some of the units up
there to try to tweak it on up maybe another 10 to 15&nbsp;million a day, but we are pretty much maxed
out every day. Yeah, margins are good for processing if you are on a key pole-type basis right
now, and of course the Waskom gas plant, years as you move in and out, you are on more of a
percentage of proceeds or percentage of liquids, which is a much more stable long-term and a
fee-based type business that we do over there. So we are not getting the enhancement or the uplift
from a key pole contract. But the volumes were dependent on that, as long as the volumes are
steady, the cash flows are steady. Then as we slowly enhance that those cash flows will come up.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Yeah, do you have any hedge positions right now?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Bob, do you want to address that?</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Yeah, the details are disclosed in our Q, our positions. But we hedge roughly, off of the top of
my head, about 50% for the remainder of the year. Kind of 40% for next year and then in</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2009 about
in the 30&#146;s and then we also have in 2010 roughly about 20%. You know I would say that the
crude prices in the near-term are in the $68.00-$69.00 range. Going out beyond that they&#146;re above
$70. Gas prices are in the $7 to $8 range, depending upon which year it is.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: In the integration of the Woodlawn acquisition, is that moving along smoothly, or how
is that operating?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">My opinion is that it is going very well. I was talking to one of the guys, one of the marketing
guys the other day, and I said how&#146;s it going, and he said just hooking up customers. So I think
it has been going quite well. It is just kind of hooked in, and into our whole East Texas system, we
consider it a bolt-on acquisition.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">It can feed its gas into and can process some at its own place. It can process at the Waskom
facility. It is real close to the Waskom facility, so the plant manager and the management team
right there, just basically takes it over. All we had to add was one particular accounting type at
the home office.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Do you see many ancillary benefit from the propane output at Waskom benefiting your
wholesale propane business?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Well of course we have
inter-company transfers between the two. And the answer is yes, it gives us
security of supply in that area. The customers like it. A lot of that product is a high-purity
product. It is going to specialty type markets, and not going into the propane wholesale market.
But depending on the consumption by our industrial demand, the rest goes into the propane market.
But it does give us a little bit of an advantage over a typical
marketer or in the area.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: You mentioned that the marine business is particularly tight right now. Can you give
us some insight into what&#146;s driving that, and what we might see in the future?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Well, I think what is driving a lot of it is that we went through a severe downturn about four or
five years ago in the business, and very little capital flowed into
that business. So as you saw attrition with single skin barges having to go to double haul, nobody was willing to put the
capital into the business, because it was the rates weren&#146;t good enough to support new capital with
steel prices going up. So that has changed now with refinery margins being good. I think the
refineries realize that they have to have marine equipment in order to</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt">maximize the production through their facilities. So they don&#146;t want some portion of asphalt or
fuel or something holding up or hurting their volume through-puts, so they make gasoline. You
know, they are all focused on making gasoline. So I think that is part of the problem, we still
have not yet seen a lot of new equipment coming into the market. It is mostly replacement
equipment, and I think that is kind of where we come from. Over the next few years, we have plenty
of room to add equipment if we want to, but we are being very careful about what we add with
contracts and longer-term contracts when we do add anything there.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">I&#146;ll also add to that, that the requirements of the refineries, the major oil companies, they want
to see quality equipment before coming to their location. So they kind of by that demand have
weaned out the smaller mom and pop kind of low investment kind of operators. So the bigger boys
that have capital have been able to gain that business as well.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Okay, thank you.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Thank you. Again, if you would like to ask a question, please press *1.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our next question comes from Mr.&nbsp;Horowitz with Raymond James. Please proceed with your question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Good morning thank you.
My first question is regarding the sulfur business. You
talked about operating cash flow to get back to levels similar to where it was a year ago, and I
was just hoping for a little more clarity both on volumes and margins. It looks like volumes sequentially were relatively flat, but margins started to pick up a
little bit, margins per ton. I was curious, concurrent with your expectation for cash flow to
kind of mirror what it was in the first half of last year, if you thought that margins per ton
could kind of get back up to that mid-$25.00 range?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Yeah, we are seeing that, but of course the international market on sulfur is very tight right now,
and so we are trying to tweak those margins up to cover increase cost of jet fuel and increased
operational costs. It just takes time to roll it through the system. Volumes, we don&#146;t see a lot
of changes there for at least a couple of years. There are several major refinery expansions, new
coke projects that are coming on in 2009 and 2010. That a lot of that we&#146;re already in the
process of contracting to logistically handle those, that new sulfur for them. So I do not expect
increased volumes in the sulfur business, but we do expect it to get back to kind of a normal
margin and normal volumes.</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Okay. That is helpful. Switching gears now over to the fertilizer side, it looks like
with the new plant coming online, obviously through-put will be increasing. Once again back to the
margin question, you did have a slight pick up sequentially in margins this quarter, and I&#146;m just
wondering if you think you can grow on that kind of 20% as a benchmark, and how much further do you
think you can get to by year-end?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Well if you look at the fertilizer segment, it is really more of a reduction of raw material
feedstock costs, it is what the sulfuric acid plant brings to the table for the fertilizer segment.
Now what it does add to the fertilizer segment, is some third-party margins that we will pick-up
as a benefit of having the plant there at the site. So no, we definitely expect, if you look at
that segment as a whole, those volumes will pick up and those margins on the fertilizer side may
not necessarily, they will be better by the reduction of the feedstock costs. We do expect it to
increase, so when you look at the numbers, it will look like larger margins. But it&#146;s really a
reallocation.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: I appreciate it, thank you.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Thank you. Our next question comes from Mr.&nbsp;Londe with AG Edwards. Please proceed with your
question.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Yes, is there any update on the GPs involvement in building an underground storage
facility near Perryville?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Bob, do you want to talk about that one?</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Near Arcadia, Louisiana, you are talking about that one?</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Yeah, Perryville is close to Arcadia.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Just west of Perryville. Yes, production is going as we speak. We kind of soft circled phase one
coming online in the fourth quarter. That will be a kind of smaller point HBCF, we are working on
our disposal wells to expand into phase two, but phase two realistically won&#146;t come online until
about 2009. So again, a smaller piece phase one and late fourth
quarter, but phase two really not
complete until 2009. And again, this is just for everybody&#146;s</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt">edification, this is all at the GP level, and then there is some discussion of ultimately it could
be sold down to the MLP, but our Board has not made any commitments to that, but that is a definite
possibility.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;: Thank you.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Thank you, here are no further questions at this time. I would like to turn the floor back over to
management for closing comments.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">Okay, Bob. This is Ruben, all I would like to say is that you know we have seen a lot of
volatility in the MLP market in the last few days. We believe at Martin Midstream that we are
committed to strategic disciplined acquisitions with organic growth. Investments, we are looking
at long-term values for our Companies, and I think that the Woodlawn plant, of course the Waskom
organic expansion and the sulfuric acid plant, which is organic, these are all examples of that
strategy there, looking of long-term, good, solid margins in the long-run. All of those facilities
are up and running, and will be running from now, this time forward, as they came on here in the
late second quarter. Our improving distribution growth is increasing, as Bob talked about, it
demonstrates our growth as very prudent. Long-term we&#146;ve raised that distribution with increasing
our coverages, we just wanted to leave you with that. The other thing of course is our business
model, it is one of diversification. We realize it is a little bit harder to get grips around
several different business lines, but we think that is positive, and we think it will add strength
to the Company for the long-run. So all of those business lines fit together, but they are very
diverse-type companies with different drivers driving those different business times. So anyway,
with that I appreciate everybody&#146;s time. I appreciate the questions. I look forward to the next
quarter. Thank you.</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Operator:</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt">This concludes today&#146;s teleconference. You may disconnect your lines at this time.</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
