Good day, ladies and gentlemen, and welcome to the Martin Midstream Partners’ Third Quarter 2015 Earnings Conference Call Webcast. At this time all participant lines are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions]. As a reminder this call is being recorded. I would now like to introduce your host for today’s conference, Bob Bondurant. Please go ahead, sir.

Thank you, Mallory [ph]. And I want to apologize to everyone for the late start. We had few technical difficulties but hopefully they’ve been earned out and we’ll go forward from here. And I want to let everyone, those on the call today beside myself we have Joe McCreery, our VP of Finance and Head of Investor Relations; and Wes Martin, our VP of Corporate Development. And before we get started with the financial and operational results for the third quarter, I need to make this disclaimer. Certain statements made during this conference call may be forward-looking statements relating to financial forecasts, future performance, and our ability to make distributions to unit holders. We report our financial results in accordance with Generally Accepted Accounting Principles, and use certain non-GAAP financial measures within the meanings of SEC Reg G, such as distributable cash flow, or DCF; and earnings before interest, taxes, depreciation, and amortization, or EBITDA; and we also use adjusted EBITDA. We use these measures because we believe it provides users of our financial information with meaningful comparisons between current results and prior reported results, and it can be a meaningful measure of the Partnership’s cash available to pay distributions. We also included in our press release issued yesterday a reconciliation of EBITDA, adjusted EBITDA and distributable cash flow to the most comparable GAAP financial measure. Earnings press release is available at our website, martinmidstream.com. Now I’d like to discuss our third quarter 2015 performance compared to the second quarter of 2015. For the third quarter we had adjusted EBITDA of $41.4 million compared to $45 million in the second quarter. As will be discussed in more detail later this decline was primarily driven by seasonality in our NGL and fertilizer businesses. Our distributable cash flow for the third quarter…

Thanks Bob. I’ll start with our normal walk through of the debt components of the balance sheet and our bank ratios. I’ll then provide some third quarter ended benchmarks against the cash flow guidance we gave early in 2015. On September 30, 2015, the Partnerships’ balance sheet reflected total long-term funded debt of approximately $876 million. This funded debt level is before unamortized debt issuance and unamortized issuance premiums as actual funded debt was $884 million. At quarter end our revolving credit facility balance was $500 million and the notional amount of our senior unsecured notes was $384 million. Thus the Partnership’s total available liquidity under the revolving credit facility on September 30 was $200 million based on our new revolving credit facility commitment amount of $700 million. During the quarter, the Partnership voluntarily reduced debt amount from $900 million in order to create annual savings of approximately $1 million on unfunded commitment fees. For the third quarter of 2015 our bank compliant leverage ratios, defined as senior secured indebtedness-to-adjusted EBITDA and total indebtedness-to-adjusted EBITDA were 2.75 times and 4.85 times respectively. Our bank compliant interest coverage ratio, as defined by adjusted EBITDA-to-consolidated interest expense was 5.07 times. Looking at the balance sheet, total debt-to-total capitalization at September 30 was 67.6%. Our funded debt increased during the quarter as we experienced working capital increases of approximately $22 million associated with the seasonal inventory build-up of butane within our natural gas services segment. In all at September 30, 2015 the Partnership was in full compliance with all banking covenants financial or otherwise. Additionally, as we do every third quarter, the Partnership completed its annual goodwill impairment testing. We’re pleased to report that we had no goodwill impairments of any kind in any of our segments. Next, let’s move to capital raises.…

[Operator Instructions]. Our first question comes from the line of Gabe Moreen with Bank of America Merrill Lynch. Your line is now open.

Hi, good morning everyone.

Good morning, Gabe.

Couple of quick questions from me, just on the debt repurchases, I’m just curious because I don’t think you talked about that at the Analyst Day. I’m curious if you can talk about kind of what level of discount is attractive to you on the notes. And then also in terms of, I guess, are there limits to how much you could potentially buy back within your credit facilities? And then the third part of the question, sorry, it’s a three-part, is that it looks like the DCF - the gain from the repurchase at the discount is not included in DCF, but I assume the interest expense savings going forward will be included in DCF. Is that fair?

Yes, let me take number three first that is correct. And you’re exactly right with respect to initial forecast on the note repurchases. If you recall back in the second quarter we amended our revolving credit facility Gabe to allow for the provision to buy both debt and equity securities on the open market. And given sort of the choppiness and weakness we’ve seen in the high-yield market, which has been opportunistic. And we’ve seen levels in kind of in the low 90s that were attractive to us. Most of the purchases made during the third quarter were in the kind of the 94 price range. And we thought it appropriate given that capability. The sub-limit under the basket of the revolving credit facility is $25 million, and so that would be the outside limit of how much we could actually buy back.

Got it. And so, you’re through ‘16 of that, so you’ve got another nine remaining?

Correct.

Great. And then larger picture question, just thoughts in terms of an update on growth projects, where particularly the Asphalt Project that I think had been discussed previous quarters. And any thoughts on, I guess, 2016 growth capital levels in general?

Yes Gabe, excuse me, this is Wes I’ll take that. With respect to the Asphalt Terminal project that still has not come to the board for approval. We would expect that to happen sometime in the fourth quarter. I will say that we are looking at a potential sort of alternative financing or I guess, sort of a different mechanism if you will by which we would finance idea. There is a chance that we may be able to do it up at the parent company and do it under a drop-down type structure over the long-term. So, we’re looking at that in the meantime to see if that’s a more feasible and capitally prudent transaction for the public company as well as the private company. But if it does come to the board, we would expect that to happen sometime in the fourth quarter. The size of that specifically is still in that plus or minus $30 million range. And then with respect to the broader capital budget, looking ahead into 2016, we’re going through that process right now. So I hesitate to give any real specific guidance other than to say sometime here in the next several weeks, we’ll have a better handle on what that looks like for 2016. But I would say as we sit here today looking out really into ‘16, we’re talking about something probably less than the $50 million range, given sort of all the different small projects that we may have coming up. But overall I don’t think it’s going to be a large number for 2016.

Got it. Thanks a lot.

Gabe, this is Joe. I think what we’ll do on that is once we get past the internal budget process we’ll come back to you before, certainly before the next earnings call and provide a guidance update on that number.

Thanks Joe.

Yes.

[Operator Instructions]. Our next question comes from the line of TJ Schultz with RBC Capital Markets. Your line is now open.

Hi, just one thing. If you could just kind of expand on the rail terminal. It sounded like there is some near-term benefit that we should expect. I think you mentioned some of the kind of butane volumes and carrying value at the end of the quarter. But just kind of help me understand what the opportunity is there and how we should see that flow through? Thanks.

Yes, just big picture to understand the business model is we’re gathering really if you will distress normal butane, refiner grade butanes during the summer time. We now have a rail facility in North Louisiana with underground storage area. So our geographic footprint profile has increased significantly. So we’ve been bringing in volumes from all over the country, a lot of Northeast volumes at very low inventory values being carried. So, now obviously the refiners are demanding that butane in the fourth quarter, in the first quarter. So, we’ll just turn around and railcars will now be outbound back to refineries, some on the Gulf Coast some in the Midwest. So, it’s all about revenue recognition timing. Obviously the sales are primarily made in the fourth and first quarter and the inventory-build in the second and third quarter. But we know our position on volume we know our position on price. And there are significant margins that will be realized in the fourth quarter and first quarter.

Okay, thanks.

Thank you. I’m not showing any further questions. I would like to turn the call back to management for any further remarks.

Sure, thank you, Mallory. And just to summarize, we did experience our typical seasonal drop in the third quarter. But as you know our WTLPG and Cardinal acquisitions have allowed us to mute the more extreme nature of it. It’s much more muted now and going forward. We also believe in the staying power of our refinery facing businesses, even though growth is challenged. And the continued high levels of refinery utilization continue to bode well for MMLP, that’s why we feel very strong in being able to affirm our guidance and that is exactly what we’re doing with this call. We again, appreciate your patience with the delay in the phone call in the front-end. And we appreciate your continued coverage of us and support of us. Thanks everyone.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program and you may all disconnect. Everyone have a great day.