<SUBMISSION>
<ACCESSION-NUMBER>0000950134-07-023335
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20071107
<ITEMS>7.01
<ITEMS>9.01
<FILING-DATE>20071108
<DATE-OF-FILING-DATE-CHANGE>20071108
<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>071225004
</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>d51387e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<HEAD>
<TITLE>e8vk</TITLE>
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<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: 12pt"><B>Date
of report (date of earliest event reported): November 7, 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>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>DELAWARE</B><BR>
(State of incorporation <BR>
or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-50056</B><BR>
(Commission file number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>05-0527861</B><BR>
(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>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>4200 STONE ROAD <BR>
KILGORE, TEXAS</B><BR>
(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><BR><B>75662</B><BR>
(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 align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</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>





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



</TABLE>
</DIV>
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</DIV>

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</TABLE>
</DIV>
<!-- link1 "Item&nbsp;7.01. Regulation&nbsp;FD Disclosure." -->

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;7.01.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Regulation&nbsp;FD Disclosure.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;7, 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>
<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits." -->

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;9.01.</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Financial Statements and Exhibits.</B></TD>
</TR>
</TABLE>
</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%">
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    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">EXHIBIT NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>

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<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transcript of the Investors&#146; Conference Call.</DIV></TD>
</TR>
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</DIV>


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<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:&nbsp;&nbsp;November 8, 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
Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<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="3%">&nbsp;</TD>
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    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">EXHIBIT NUMBER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>

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<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">99.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Transcript of the Investors&#146; Conference Call.</DIV></TD>
</TR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d51387exv99w1.htm
<DESCRIPTION>TRANSCRIPT OF THE INVESTORS' CONFERENCE CALL
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Transcript of<BR>
Martin Midstream Partners<BR>
Third Quarter 2007 Earnings Conference Call<BR>
November&nbsp;7, 2007
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>PARTICIPANTS</B><BR>
Ruben Martin &#151; Martin Midstream &#151; President and CEO<BR>
Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U> Greetings and welcome to the Martin Midstream Partners Third 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,
Chief Financial Officer for Martin Midstream Partners. Thank you Mr.&nbsp;Bondurant, you may begin.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
Thank you Anthony. And to let everyone know who else is on the call today, we have Ruben Martin,
Chief Executive Officer 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 call may be forward-looking statements relating to financial
forecast, 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 will 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&nbsp;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
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the partnership&#146;s cash available to pay distributions. Distributable cash flow should not be
considered 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 metrics 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 direct comparable GAAP financial measure.
Both the earnings press release and our third quarter 10-Q are available at our website at
<U>www.martinmidstream.com</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With that out of the way, I would like to comment on our third quarter performance. For the third
quarter, we had net income of $5.5&nbsp;million or $.35 per limited partner unit. In the third quarter,
earnings were negatively impacted by $.08 per limited partner unit as a result of non-cash
mark-to-market charges relating to commodity derivative instruments and interest rate swaps. So
without this non-cash charge our earnings would have been $.43 per limited partner unit, which
would have been more inline with research analyst estimates. This compares to our third quarter
2006 net income of $.32 per limited partner unit. More importantly, our distributable cash flow
for the third quarter was $10.5&nbsp;million, and our rolling 12&nbsp;month distributable cash flow has been
$43.2&nbsp;million. Our third quarter distributable cash flow fully covers our distribution, and our
rolling four quarters distributable cash flow coverage is 1.2 times. This continued strong
distributable cash flow performance allowed us to increase our November&nbsp;15 distribution by another
$.02 per quarter, or another $.08 per year. We have grown our distributions by 11% year-over-year,
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 segment, comparing the third
quarter of 2007 to the second quarter of 2007. In our terminalling segment, our operating income
for both the second and third quarter was $2.6&nbsp;million, however, when we add back depreciation
expense to both quarters, our cash flow in our terminalling segment increased by $234,000. This
increase in cash flow was primarily driven by two new tanks being placed into service in the third
quarter. One tank is in Corpus Christi and handles diesel fuel; the other tank is in natural gas
liquid service in Beaumont and handles natural gasoline. The total investment in these two new
tanks was $8.9&nbsp;million, and they should cash flow $1.6&nbsp;million on an annual basis, an investment
multiple of 5.5 times.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our natural gas services segment, operating income in the third quarter was $1.6&nbsp;million,
compared to a half million dollars in the second quarter. Our NGL volumes increased to 8% and our
NGL margins increased 32%. This margin increase was significantly higher than anticipated, as we
experienced a continued increasing commodity price environment in natural gas liquids, which
enabled us to spread our margins. Offsetting these increased margins was the non-cash
mark-to-market charge of $0.7&nbsp;million in the third quarter, compared to a $0.6&nbsp;million charge in
the second quarter. Please see the footnote five of
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">our financials to get a breakdown of our commodity cash flow hedges that are currently in place.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A few of our hedges have shifted from cash flow hedges, which are included in OCI, a partners
captial account to mark-to-markets, which impact the income statement. Certain hedges, primarily
crude oil to hedge natural gasoline and crude oil to hedge condensate have been classified as
ineffective. As a result of being classified as ineffective, these negative charges are being run
through the income statement, but are added back for distributable cash flow purposes. 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 third quarter these
earnings were $2.7&nbsp;million compared to $2.4&nbsp;million in the second quarter. The Waskom plant in
this volume averaged 252&nbsp;million cubic feet per day in the third quarter, compared to 228&nbsp;million
cubic feet per day in the second quarter, as our plant expansion was online for the whole period in
the third quarter. Also, our frac volumes increased 14% to 9,301 barrels per day in third quarter
for the same reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moving to our marine transportation segment, we had operating income of $1.8&nbsp;million in the third
quarter as compared to $2.1&nbsp;million in the second quarter, a decrease of $300,000. However, we had
an increase in depreciation of $400,000 in the third quarter, so when one factors that into
marine&#146;s financial performance, our cash flow increased $138,000 in the third quarter. This
increase in cash flow was a result of a revenue increase of $600,000, offset by an increase to
operating expense. As we have spoken about in the past, we continue to see tight market conditions
in our marine transportation marketing area, so we anticipate a continued strong cash flow
performance in the fourth quarter and through 2008 in the marine business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In our sulfur segment we had operating income of $1.3&nbsp;million in the third quarter compared to
$400,000 in the second quarter, an increase of $900,000. Although our volume declined 8% in the
third quarter, our margins per ton improved 28%. This increase in margin was a result of a tight
international sulfur market driven by strong fertilizer margins. As a result of this tight
international market, we were able to expand our prilled sulfur margins. Also, our operating costs
have stabilized at $3.9&nbsp;million for the third quarter, the same operating cost as the second
quarter, as our sulfur marine transportation system has operated efficiently for two consecutive
quarters. Also in our sulfur segment, we have recently added Randy Tauscher as our new Executive
Vice President. Randy was previously employed by Koch Industries for over 18-years, most recently
holding the office of Senior Vice President of the Koch Carbon Division. Randy&#146;s responsibilities
at Koch Industries included overseeing the supply and trading of petroleum coke, sulfur, and ocean
freight. We are very excited at having Randy join our team, and we anticipate his positive impact
in not only the sulfur segment, but throughout the whole Company.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Because of the seasonality in our fertilizer segment, a comparison of the third quarter to the
previous year&#146;s third quarter is most appropriate. The fertilizer segment had an operating income
of $119,000 in this year&#146;s third quarter compared to $42,000 in last year&#146;s third quarter.
Although our volume was up 60%, our margin per ton fell 31% between those periods. This margin
decrease was a result of the sales mix in this year&#146;s third quarter compared to last year&#146;s third
quarter. A year ago, we experienced sales of our higher margin specialty product in the third
quarter, which significantly improved our margin per ton. This year those sales will occur in the
fourth quarter. Also, we had anticipated production at our sulfuric acid plant to be in production
the majority of the third quarter. Unfortunately, we had start-up operational problems that
hampered us through most of the quarter. Beginning September&nbsp;21, 2007, we began full uninterrupted
acid production. Since then, this plant has run continuously. We are producing approximately 450
tons of acid per day. We will consume approximately a third of this production on an annual basis
for production of ammonium sulfate. The balance of acid production will be sold to third-party
consumers. As you may or may not know, sulfuric acid is in extremely tight supply, so we continue
to believe our $27&nbsp;million investment in this plant will be at a five multiple of cash flow.
Because of the new sulfuric acid plant being online, and the fact we will also be selling our
highest margin product in the fourth quarter, we anticipate this year&#146;s fourth quarter to be a
record quarter in our fertilizer segment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">At the end of the third quarter we had $210&nbsp;million drawn on our debt facility, leaving $40&nbsp;million
of availability. Our debt to total capitalization remains at a conservative 46%. During the
fourth quarter, on our revolving debt facility our interest rate will be LIBOR plus 175, and during
the first quarter of 2008 we anticipate our interest rate to be LIBOR plus 200. Currently, we have
hedged $170&nbsp;million, or 81% of our long-term debt, at a cost of 4.97% plus our LIBOR margins.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Moving to maintenance capital expenditures, through the first nine months we have spent $6.6
million, excluding hurricane-related maintenance capex. We continue to estimate we will spend
approximately $9&nbsp;million for all of 2007. For 2008, we believe our maintenance capital
expenditures will be somewhere between $10 to $12&nbsp;million. Please note that the capitalization of
our asset plant will increase our depreciation expense by $300,000 per quarter, beginning in the
fourth quarter. This is on top of the normal $300,000 growth in quarterly depreciation expense
increases we incur as a result of normal growth and maintenance capital expenditures.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In summary, we continue to believe the outlook is very strong for our Company. All of our segments
are performing well, and we believe all should improve their cash flow in 2008. Combine this
forecast and cash flow growth with our strong distribution coverage of 1.2 times, we feel we are
positioned to have strong performance in 2008.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Now Ruben and I would be pleased to answer any question you might have. So Anthony, you can open
the phones up for questions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U><BR>
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 * keys. One moment as we poll for questions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our first question comes from the line of Ron Londe with Wachovia Securities. Please proceed with
your question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Thank you. Just curious, from the standpoint of the acid plant start-up costs, can you
give us a feel for what the costs might have been in the third quarter?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO </B></U><BR>
Because we basically didn&#146;t run in the third quarter, we just had some small production. The
start-up operational costs were capitalized into the cost of the plant, so in effect nothing really
hit our income statement from that.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Okay. Was the seasonal down-turn in the third quarter inline with your past
experience, or was there something unusual in that?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
Yeah, it was totally a normal and anticipated down-turn; there was nothing unusual. I know when a
couple years ago we had hurricanes in the third quarter, and that was more unusual. But relative
to 2006, there was nothing unusual in comparison to that.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Okay. In the marine area, are you being able to pass along fuel cost effectively?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
This is Ruben. Yes, we&#146;ve been able to actually have contracts and do contracts now that actually
not only have fuel, but have labor costs if this labor increase is higher than CPIs, our
indicators, then we&#146;re able to pass that through to the customers too. So I think everybody in the
marine industry understands the problem with these diesel fuel costs. Now the sulfur segment is a
little bit different from that. It is difficult to pass it through until contracts roll-over and
those kind of items. But in all other segments the marine is passed through onto these.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;You mentioned the sulfur contracts, how often do they roll-over?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Annually. We expect that here, and we are negotiating now.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;The Waskom plant seems to be running pretty well. Are you at total capacity there?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Yes we are, but we have some debottlenecking that we are working on, and for some small amount of
dollars we can debottleneck and hopefully get the plant upwards of 280 to 290 without a lot of
added expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;What is the timeframe on that?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Probably into six months to a year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Okay. So maybe in the second half of 2008?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Yeah, hopefully.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Okay. Can you give us a feel overall for the current environment in the sulfur area?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Sulfur is an extremely tight commodity like a lot of them that we are seeing today. Expenses are
rising rapidly, it is hard to renegotiate the contracts and spread your margins in such a tight
market; we are working that, and the volumes and the things should be consistent with what we&#146;ve
done this year. We look for a small increase. We don&#146;t see any rapid growth in the sulfur
business for a year or so. Then there is additional sulfur coming on in like 2009 and 2010 that we
already have contracts on from a lot of the expansions that I&#146;m sure you are seeing in the refining
sector. So we look for that volume to be fairly flat, we try to spread our margins a little bit in
2008 and 2009, and then volume increases in 2010 and beyond.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;And the volume increases will be tied in the refining capacity?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
That is correct.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Using heavier crude?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Yeah exactly. They&#146;ll all get geared up in 2010 and 2011 to process much heavier crude.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;What did you experience from servicing the refiners this quarter? Were the general
volumes up, flat, down?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
I think they were generally flat to up slightly. I think most of the refiners came through some
very difficult times in the first quarter; we noticed a lot of turn-arounds and a lot of volume
decreases in the first quarter and partially into the second. But I think the volumes were about
flat in the third one.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
Yeah, but on an annual basis, from what our plan was, they were down about 100,000 tons, because of
productions. The turn-around were down.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
A lot that was in the first quarter. There were a lot of refinery problems in the first quarter.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U><BR>
Our next question comes from the line of John Tysseland with Citigroup. Please proceed with your
question.
</DIV>

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

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;While not in a partnership, would you be willing to talk about your natural gas storage
operations and your development activities, and how those are progressing up at the parent company?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Yeah, and again, like you said, that is being developed at the private company. We are actually
injecting gas into some wells that we are in the process of debrining now. These were converted
wells that were in natural gas liquid storage over the last 20-30&nbsp;years. So we are actually
debrining those. We will actually have the operation going with like 0.5 b&#146;s within about 30 to 40
days. So the operation is started. We are getting equipment in
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and footprint is getting filled out. Until we have any real capacity, it is 2010 I believe, is when we
put the 6 or 7b well in service. So it is coming along. The operational problems are getting
handled. Compressors are getting delivered, and gas is moving in right now.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;That&#146;s fine. Is that, how do you look at potentially contracting that out to
customers? I guess are you kind of waiting on that at this point, or is that something that you
are actually doing today?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
No, we are 80% contracted through the 10&nbsp;days or so, through phase 1 and 2, which is about 9&nbsp;days,
we are 80% contracted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;That is for the capacity that is expected to come online when?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Okay. Then the other question is in regards to your gathering and processing assets.
How is that drilling activity around those assets at this time? I mean, year-over-year obviously
has seen a pretty big up-tic, but how do you see activity around those assets, and what do you
expect volumes to do over the next couple of quarters?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
We continue to run at capacity. Activity has been pretty steady. In East Texas, it is an old,
well-developed field that we&#146;ve been living with here for years and years, and I&#146;ve been looking at
it for over 50&nbsp;years, it is well-developed. So it is a type of field that is steady. It is
subject to some of the upsides when the prices get right, but there is very little downside. The
plant has been full, remains full, and people are always talking about expansion.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U><BR>
Our next question comes from the line of Darren Horowitz with Raymond James. Please proceed with
your question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Good morning, thank you. The natural gas side, can you just give us a brief outline
for how much you are hedged for next year? Are you still about two-thirds hedged mostly in swaps?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO </B></U><BR>
It is more about 60% I believe for next year.
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Okay, then any further hedging out to 2009?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
2009, the numbers, I&#146;m pulling this off of the top of my head, but they are in more of the 30 to
40% range. We are evaluating with prices doing what they are doing now of potentially putting some
more on. But we haven&#146;t pulled the trigger yet on that.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Would it all be swaps or maybe some collars?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
We have been doing swaps. Right now we are leaning that way towards swaps, but that is not to say
we wouldn&#146;t consider collars.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Okay, that&#146;s helpful. My next question is just a little bit more of a follow-on on the
sulfur side. When you are looking two, three, four years out, and you are looking at adding more
capacity and more facilities, can they still be added similar to what you all did in Beaumont for
somewhere around $50&nbsp;million and take a two year build time?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Well basically I think that our real plan is on the Gulf Coast as we see supply come up, and we do
believe that we will see consumption, domestic consumption come down, which makes the export
facility that much more needed. We see that facility growing, and we can add incremental capacity
to that facility for much less than that; several million dollars instead of up into the upper
millions. So $40-$50&nbsp;million, we are talking about adding for a few million dollars. So I think
that is where most of our focus will be. We are also looking at some things on the West Coast too,
so at Stockton on our capacity there, and different things. So we see that this market is becoming
more of an export market in that 2010 range when we see what we believe to be fertilizer
consumption coming down and supply coming up.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Okay, that&#146;s helpful. Then my final question if I could on the parent side, on the
private side. When you look at further diversifying your business lines, and you are looking
several years out, do you think that there could be a refinery opportunity to get dropped down into
the LP format?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO </B></U><BR>
Well as some people on this call may or may not know, we do own a lube refinery at the private
company, with production of about 5,500 barrels a day of lube. I know there are MLPs out there
that have refineries, Calumet being the most prominent. It is a possibility, but it is something
that we haven&#146;t decided to do. I think we are evaluating it, but again, the
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">refining business as you well know is not as steady as our other MLP businesses. It is a little
bit, obviously more sporadic concerning the cash flow. So it is an evaluation that is ongoing at
this time.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U><BR>
There are no questions in queue at this time. But as a reminder, if you would like to ask a
question, please press *1 on your telephone keypad.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our next question comes from the line of Shauna Wells with RBC Capital Markets. Please proceed
with your question.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;Yeah, I heard some mention about maintenance capex for next year, and I think I also
heard about maintenance capex for the fourth quarter. I was wondering if you guys could give me an
idea of what you are looking at for the first quarter for growth capex, and maybe also for next
year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
For growth in the fourth quarter is roughly $5 to $10&nbsp;million. Looking at next year, probably
north of $80&nbsp;million. It is kind of varied between marine and terminalling.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#060;Q&#062;:&nbsp;&nbsp;And are you guys considering&#151; I mean it is obvious that all the Waskom capacity is
used at this point, and you are talking about maybe putting together some debottlenecking project
so you could add another 30&nbsp;million of capacity. Are you looking in terms of something a little
more in building the capacity, maybe adding another plant or something like that?
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Well it is something that we talked about. Again, we don&#146;t want to get in a situation that you
overbuild it in the area. There are a lot of gas plants around here now. There are some south of
us that don&#146;t have the sophistication of our plant. So we are not worried about the competition,
but there is some extra capacity that is available south of us. So I think overgrowth in this
particular market is something that we have to be very, very careful of.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U><BR>
Our next question comes from Ron Londe with Wachovia Securities. Please proceed with your
question.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;Yes, what percentage of the Waskom&#146;s LPGs does your wholesale propane business buy?
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO</B></U><BR>
Pretty much all of it.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">&#060;Q&#062;:&nbsp;&nbsp;So it is pretty much&#151;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Robert Bondurant &#151; Martin Midstream &#151; Executive Vice President and CFO </B></U><BR>
There is one large third-party consumer where Waskom will go direct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
We have pipeline that run into some cracking plants here in East Texas. Eastern Chemical and so
forth that are taking ethane. We are transporting some high-purity propane that we make to an
end-user. But a lot of it goes into the local markets, goes into the heating market in the winter
time, chemical markets, it is just like everything. Most everything though is moved through our
own Company, for obvious reasons.
</DIV>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Operator:</B></U><BR>
There are no further questions in the queue 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: 6pt"><U><B>Ruben Martin &#151; Martin Midstream &#151; President and CEO</B></U><BR>
Okay, this is Ruben. Bob is here, but we want to thank everybody for joining in today. We
appreciate your questions, they are good. We look forward to the future with a good year. We&#146;ve
had a difficult time getting our sulfuric acid plant up and running, and it is over budget
slightly, but we came in good and the numbers are good. They are actually better than our original
model. So we are looking forward to that. The fertilizer business is looking good for all of the
reasons that you read about ethanol and everything. It has been a good year, and we are looking
forward to a good spring in there. We are really looking forward to 2008. We&#146;ve got some good
projects online, and ready to rock-n-roll. Thank you.
</DIV>


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