Good morning, ladies and gentlemen and welcome to Martin Midstream Partners Fourth Quarter 2018 Earnings Conference Call and Webcast. [Operator Instructions] And as a reminder, today's conference is being recorded. I would now like to hand the conference over to Sharon Taylor, Director of Investor Relations. Please go ahead.

Thank you, James. Good morning, everyone. With me in the room is Ruben Martin, CEO; Bob Bondurant, CFO; Scott Southard, our VP of Commercial Development; David Cannon, the Director of Financial Reporting; and [Denny Kevin] our Director of FC. Before we get started with the financial and operational results for the fourth quarter and full year 2018, 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 meaning of SEC Regulation G, such as distribution c ash flow, and earnings before interest, taxes, depreciation and amortization, or EBITDA, and also 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, distributable cash flow and quarterly adjusted EBITDA guidance to the most comparable GAAP financial measures. Our earnings press release is available at our website, mmlp.com. Further in the press release is the link to slide deck that outlines our 2019 financial guidance. Now I'll turn the call over to Bob Bondurant, our CFO.

Thanks, Sharon. Before l begin discussing our fourth quarter performance, I would like to comment on our recent drop-down acquisition transaction of Martin Transport. We closed the transaction effective January 1, 2019 for 135 million. The purchase price was financed by drawing a 123 million on our revolving line of credit and the assumption of 11.7 million of debt secured by certain trucks and trailers. As many of you will recall, we have estimated EBITDA for Martin Transport to be 23.6 million in 2019 implying the purchase price of 5.7 times. We still feel confident in our projection that our revenue per mile and our driver count is currently greater than our acquisition forecast. So we remain very bullish on this acquisition and believe it provides a very strategic fit with a strong organic growth profile while extending the value chain of our refinery service business lines. Now I’d like to discuss our fourth quarter performance compared to our fourth quarter guidance. For the fourth quarter, we had adjusted EBITDA of 27 million compared to adjusted guidance of 41.2 million. The mix in adjusted EBITDA compared to adjusted guidance was in our natural gas services segment specifically in our butane optimization business as our actual fourth quarter butane optimization EBITDA was 0.7 million compared to our forecast of 14.2 million. When we last spoke during our third quarter earnings call on October 25, we had every reason to believe we were going to achieve our fourth quarter guidance in this business as the average butane price for the first 24 days of October was a $1.15 per gallon which was significantly higher than our per gallon cost in storage. In fact the butane price at beginning of October was a $1.31 per gallon falling to $0.72 by the end of…

Thanks Bob. We'll start with the normal walk-through at the debt components of our balance sheet tying in our bank ratios at quarter end. Then we’ll provide a quick review of fourth quarter and full year capital spending. Next I’ll discuss financial guidance for 2019 and then I'll be turning the call over to Ruben Martin for his remarks around strategic initiatives for the Partnership. On December 31, 2018 the Partnership's balance sheet reflected total long-term funded debt of approximately 656 million. Our balance sheet funded debt was shown before and amortize debt issuance and unamortized issuance premiums as actual funded debt outstanding was 661 million. Reconciling this amount at quarter end our revolving credit facility balance was 287 million and the notional number of senior unsecured notes was 374 million. Thus our total available liquidity on December 31 was 377 million based on our 664 million revolving credit facility. For the quarter and year ended December 31, 2018 our bank compliant leverage ratios defined as senior secured indebtedness to adjusted EBITDA and total indebtedness to adjusted EBITDA, were 2.14x and 4.61x respectively. As a reminder, our total debt ratio is shown with adjustments from the working capital carve out sublimit, which allows us to exclude certain debt directly attributed to our seasonal NGL inventory build. Yes, the volumes are either forward sold or hedged from our total debt-to-EBITDA calculation. At December 31, 2018, the calculated debt related to our inventory build was $43.5 million. Accordingly, we excluded that amount from our total debt when calculating our total debt-to-EBITDA ratio. Without this carve out, our total debt-to-adjusted EBITDA would be 4.93x. Our bank compliant interest coverage ratio is defined by adjusted EBITDA to consolidated interest expense was 2.72x. Looking at the balance sheet, total debt to total capitalization on December…

Thank you, Sharon. Good morning to everyone. I'll begin briefly by addressing our participation in two potential project that you most likely have read about in the media and then announce important strategic initiative that partnership has launched recently. To begin with, let's discuss the two potential projects that are in very early stages of development but have been reported in the media and as a result we received multiple inquires concerning them. These are our crude oil export terminal at Harbor Island and an ethane export terminal at Beaumont, Texas. As was previously announced by the Carlyle Group, we are actively exploring with Carlyle Group and for Corpus Christi the developments of the crude oil export terminal at Harbor Island. Although there are no definitive agreements in place, we believe our existing terminal add strategic value to the project. Moving to the proposed ethane export terminal in Beaumont, Texas; that American ethane has announced, our existing nature's terminal site which has access to deep water is conducive to the construction of an ethane export terminal. As has been reported, the ethane export project is contingent upon licenses and permits that the Chinese Government may issue in addition to permits by multiple U.S. and state agencies, none of which are in place today. Specifics regarding the ethane terminal and its operations are being developed at this time in conjunction with efforts to reach our definitive commercial agreements. Finally, our strategy for the partnership has been for some time now to strengthen our balance sheet and focus our current operational efforts around our expertise in refinery services industry. We believe that the timing is right to take the next meaningful steps toward our goals, the step being to market our Cardinal gas storage assets. We have hired an advisor to assist us in approximately two weeks into the process that we estimate will take 16 weeks. Our objective remains constant. A significant reduction in leverage for the partnership, initial estimates of proceeds from the sale coupled with our 2019 guidance, result in pro forma leverage below 4x at the culmination of our successful transaction, strengthening our partnerships and providing the ability to pursue long-term strategic process. Okay, James, that concludes our prepared remarks this morning and now we can open the lines for question-and-answer.

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

I think first as you look at kind of delevering process and a lot of moving parts there and something in the offer. Just how much flexibility do you have on the distribution level maybe also in the context of MRMC's capitalization and need for that cash flow. Same color on the policy for 2019 and the scope of the proposed asset sale to?

As far MRMC is concerned with the MCI drop-down transaction our bank debt is very minimal. So the need for the distribution is not as large as it has been in the past, but I will say this as Ruben discussed we have a goal to delever the partnership and cover our distributions by at least 1.25x. And all strategic initiatives are focused on those goals so entertaining any and all ideas that get us there in 2019. Would that include what you suggested maybe a lot of it depends on the cardinal transaction what proceeds we have received from that

On the American ethane terminal measure, is there any or are there any economics accruing to you as the deals pending?

This is a Scott Southard. We are very early in the process with them we continue to negotiate definitive agreement. So I would say this time we don't have anything more to share.

This is Ruben. I will say this is that the assets that we’re talking about at Beaumont are very strategically located when it comes to supply for all LPG in that area. And so the negotiation will involve the use of not only our land, our docks and the strategic location of the Beaumont terminal and we have a lot of land that's available for expansion at that terminal. And so with the growth in that area and a lot of the supply and the product going close to Beaumont be a pipeline and other avenues, we will be able to negotiate that is good for the Partnership.

[Operator Instructions] And I am not seeing any further questions in queue. So I’ll turn the call back over to Mr. Martin for any closing remarks.

Thanks James. In closing I'd like to thank each of you for joining on the call and the continued support to our partnership. 2019 is shaping up to be a pivotal year for us with the beginning of the sale of the WTLPG in 2018, the Martin Transport acquisition in January 1 of this year, and the anticipated sale of Cardinal gas. From a big picture view we will try cash flows from non-core assets with cash flows from MTI. Further the difference between realized proceeds from WTLPG combined with estimated proceeds from Cardinal versus the acquisition cost of MTI will result in a net surplus of cash that will substantially delever the partnership allowing us to pursue our strategic long-term projects. Thank you.

Thank you. Ladies and gentlemen that does conclude today's conference. Thank you very much for your participation. You may all disconnect. Have a wonderful day.