Martin Midstream Partners LP (MMLP) 2024 Q2 法說會逐字稿

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the MMLP second-quarter 2024 earnings call. Today's conference is being recorded. (Operator Instructions)

早安.我叫奧德拉，今天我將擔任你們的會議操作員。此時此刻，我謹歡迎大家參加 MMLP 2024 年第二季財報電話會議。今天的會議正在錄製中。（操作員說明）

At this time, I would like to turn the conference over to Sharon Taylor, Chief Financial Officer. Please go ahead.

現在，我想把會議交給財務長莎朗·泰勒(Sharon Taylor)。請繼續。

Thank you. Good morning, everyone, and welcome to the Martin Midstream Partners conference call to discuss second quarter 2024 earnings. During this call, we will make forward-looking statements as defined by the SEC. These statements are based upon our current beliefs as well as assumptions made by the management team and information currently available to us.

謝謝。大家早安，歡迎參加 Martin Midstream Partners 電話會議，討論 2024 年第二季財報。在本次電話會議中，我們將做出 SEC 定義的前瞻性聲明。這些陳述是基於我們目前的信念以及管理團隊所做的假設以及我們目前可獲得的資訊。

Please refer to our earnings press release issued yesterday afternoon and posted on our website as well as our latest filings with the SEC for a list of factors that could impact the future performance of Martin and cause our actual results to differ materially from our expectations.

請參閱我們昨天下午發布並在我們網站上發布的收益新聞稿以及我們向 SEC 提交的最新文件，以了解可能影響馬丁未來業績並導致我們的實際結果與我們的預期存在重大差異的因素清單。

We will discuss non-GAAP financial measures on today's call. The earnings press release includes a reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures. With me on the call today are Bob Bondurant, CEO Martin Midstream; Randall Tauscher COO; David Cannon; Controller; Danny Kevin Director of FP&A. Now I'll turn it over to Bob to discuss second quarter earnings.

我們將在今天的電話會議上討論非公認會計準則財務指標。收益新聞稿包括這些非公認會計原則財務指標與其可比較公認會計原則財務指標的調節表。今天與我一起參加電話會議的是 Bob Bondurant，Martin Midstream 執行長；蘭德爾·陶舍爾（Randall Tauscher）首席營運長；大衛‧坎農；控制器;丹尼凱文 (Danny Kevin) FP&A 總監。現在我將把它交給鮑伯討論第二季的收益。

Thanks, Sharon. I would like to begin the discussion by focusing on our overall second quarter operating performance. For the second quarter, we exceeded guidance by $0.5 million as we had adjusted EBITDA of $31.7 million compared to second quarter guidance of $31.2 million.

謝謝，莎倫。我想先關注我們第二季的整體營運表現。第二季度，我們超出指引值 50 萬美元，因為我們將 EBITDA 調整為 3,170 萬美元，而第二季度指引值為 3,120 萬美元。

We exceeded guidance by $0.5 million despite two separate and distinct casualty losses that totaled $2 million in the second quarter. I will discuss these events later in my segment comments for the second quarter, our largest cash flow generator was once again our transportation segment, which had adjusted EBITDA of $11.2 million compared to guidance of $10.2 million.

儘管第二季發生了兩次單獨且明顯的傷亡損失，總計達 200 萬美元，但我們還是超出了指導值 50 萬美元。我稍後將在第二季度的部門評論中討論這些事件，我們最大的現金流發生器再次是我們的運輸部門，該部門調整後的 EBITDA 為 1120 萬美元，而指導值為 1020 萬美元。

Within this segment, our land transportation business had adjusted EBITDA of $8.2 million compared to guidance of $6.5 million. Our revenue exceeded forecast by $1.4 million as we beat our second quarter forecasted mileage by 5%.

在該細分市場中，我們的陸路運輸業務調整後的 EBITDA 為 820 萬美元，而指導值為 650 萬美元。我們的營收超出預期 140 萬美元，第二季的里程數超出預期 5%。

Also, operating expenses were $0.4 million below forecast, primarily due to lower truck and trailer operating costs when compared to forecast, this operating expense trend relative to guidance should continue as we slowly replace older equipment with new.

此外，營運費用比預測低 40 萬美元，主要是由於卡車和拖車營運成本低於預測，隨著我們慢慢用新設備取代舊設備，這種相對於指導的營運費用趨勢應該會持續下去。

Looking towards the third quarter, we continued to see strength in our sulphur hauling from Beaumont area refineries, but have seen a bit of a slowdown in other product lines such as chemicals and lubricants. However, we believe we should be at or near guidance for the third quarter in our land transportation business.

展望第三季度，我們繼續看到博蒙特地區煉油廠的硫磺運輸量強勁，但化學品和潤滑油等其他產品線略有放緩。然而，我們認為我們的陸路運輸業務第三季應該達到或接近指導水準。

Our marine transportation business had adjusted EBITDA of $2.9 million compared to guidance of $3.8 million. The majority of the Miss in our Marine Transportation performance can be explained by a $0.5 million casualty loss that occurred in May.

我們的海運業務調整後的 EBITDA 為 290 萬美元，而指引值為 380 萬美元。我們海運業績的大部分失誤可以用 5 月發生的 50 萬美元的傷亡損失來解釋。

This loss represents two separate insurance deductibles under our Marine Transportation protection and indemnity coverage policy and our whole coverage policy. This casualty loss was the result of a bridge lesion in Galveston, Texas, which occurred in May for the balance of the underperformance relative to guidance was the result of lower inland fleet utilization than forecasted.

該損失代表我們的海上運輸保護和賠償保險政策以及我們的整體保險政策下的兩項單獨的保險免賠額。這一傷亡損失是由於德克薩斯州加爾維斯頓的橋樑損壞造成的，該事故發生在 5 月份，因為內陸船隊利用率低於預期，導致相對於指導的表現不佳。

This was the result of scheduled marine equipment in drydock during the second quarter, it took longer than forecasted. Also, we had reduced revenue from the inland tows that was involved in the bridge Allegion incident.

這是第二季在幹船塢預定的船舶設備的結果，其花費的時間比預期的要長。此外，我們也減少了參與 Allegion 大橋事件的內陸拖車業務的收入。

Looking toward the third quarter, we continue to see day rates stronger than our original forecast. And we also foresee full utilization of our marine fleet, providing the opportunity to exceed third-quarter guidance in our marine transportation business.

展望第三季度，我們繼續看到日費率強於我們最初的預測。我們也預計我們的海運船隊將得到充分利用，為我們的海運業務提供超越第三季度指導的機會。

Our next strongest cash flow generator in the second quarter was our sulphur services segment, which had adjusted EBITDA of $10.6 million compared to guidance of $9.8 million. Our fertilizer group adjusted EBITDA of $6.7 million, which was the same as our EBITDA guidance for the second quarter. While the volume of fertilizer sold in the second quarter was 15% less than forecast.

第二季我們下一個最強的現金流來源是我們的硫服務部門，該部門調整後的 EBITDA 為 1,060 萬美元，而指引值為 980 萬美元。我們化肥集團調整後的 EBITDA 為 670 萬美元，與我們第二季的 EBITDA 指引相同。而第二季化肥銷售量比預期減少了 15%。

We realized a 20% improvement in actual gross margin per ton relative to guidance. This margin improvement was a result of the mix of fertilizer products sold in the second quarter when compared to our forecast. Looking towards the third quarter, we anticipate the normal seasonal trough in cash flow for the fertilizer business as farmers transition from planning to harvesting their fields.

我們實現每噸實際毛利率相對於指引提高了 20%。與我們的預測相比，利潤率的提高是由於第二季度銷售的化肥產品組合所致。展望第三季度，隨著農民從計劃過渡到收割，我們預計化肥業務現金流將出現正常的季節性低谷。

The pure sulphur side of our Sulphur Services segment had adjusted EBITDA of $3.8 million compared to guidance of $3.1 million. Primary driver of this outperformance was a strong volume of sulphur production from our Gulf Coast refinery customers.

我們硫磺服務部門的純硫磺部分調整後的 EBITDA 為 380 萬美元，而指引值為 310 萬美元。這種優異表現的主要驅動力是墨西哥灣沿岸煉油廠客戶的大量硫磺產量。

The daily volume of sulphur handled was 14% greater than our forecast as we logistically managed approximately 3,700 tons per day of sulphur production into our through our Beaumont terminals.

由於我們每天透過博蒙特碼頭物流管理約 3,700 噸硫磺生產，因此每日處理的硫磺量比我們的預測高出 14%。

Looking toward the third quarter, subject to Gulf Coast weather events we remain optimistic that sulphur production from our refinery customers will continue to remain at these higher levels, which should allow us to achieve or exceed guidance in the pure sulphur side of the business.

展望第三季度，受墨西哥灣沿岸天氣事件的影響，我們仍然樂觀地認為煉油廠客戶的硫磺產量將繼續保持在較高水平，這將使我們能夠實現或超過純硫業務方面的指導。

Our third largest cash flow generator in the second quarter was our terminalling and storage segment, which had adjusted EBITDA of $8 million compared to guidance of $9.4 million, while our specialty shore-based and underground shore terminals were spot on relative to guidance, we missed our forecast at the Smackover refinery due to a casualty loss caused by a crude oil pipeline spill that occurred in mid-June.

我們第二季第三大現金流來源是我們的碼頭和儲存部門，該部門調整後的EBITDA 為800 萬美元，而指導值為940 萬美元，而我們的專業岸基和地下岸碼頭相對於指導值來說是準確的，我們錯過了我們對 Smackover 煉油廠的預測是由於 6 月中旬發生的原油管道洩漏造成人員傷亡。

The pipeline question moves crude oil from our storage tanks to the refinery. Because of the spill, we accrued a casualty loss equalling our total insurance deductibles of $1.5 million under both our pollution policy and our general liability policy.

管道問題將原油從我們的儲槽輸送到煉油廠。由於洩漏事故，我們在污染保單和一般責任保單下累計了相當於 150 萬美元保險免賠額的傷亡損失。

The impact of this cash, the loss fully explains the Terminalling and Storage segment missed a $1.4 million when compared to guidance. Looking towards the third quarter, we believe this segment's cash flow should return to guidance.

這筆現金的影響，損失充分解釋了終端和儲存部門與指導相比少了 140 萬美元。展望第三季度，我們認為該部門的現金流應該會恢復到指導水準。

Finally, I would like to discuss the second quarter performance of our specialty products segment. In this segment, we had adjusted EBITDA of $5.7 million compared to guidance of $5.6 million. Relative to guidance we had outperformance in our grease business, which was almost entirely offset by underperformance in our packaged lubricant business.

最後，我想討論一下我們特種產品部門第二季的業績。在該細分市場中，我們將 EBITDA 調整為 570 萬美元，而指引值為 560 萬美元。相對於指引，我們的潤滑脂業務表現出色，但幾乎完全被包裝潤滑油業務的表現不佳所抵消。

The main driver of our Greece business outperformance was an improvement in our margin per pound of grease. So compared to forecast, conversely, the underperformance of our packaged lubricant business was due to a reduced margin per gallon when comparing actual margins to guidance.

我們希臘業務表現出色的主要驅動力是每磅油脂利潤的提高。因此，與預測相比，相反，我們的包裝潤滑油業務表現不佳是由於將實際利潤與指導進行比較時每加侖的利潤減少。

In the grease business, we have benefited from falling additive costs, while in the packaged lubricant business, we have had to substitute higher cost third party base oils driving up our unit cost. Looking toward the third quarter, we believe we should continue to perform at or near guidance in our Specialty Products segment. Overall, for any unusual operating or weather events, we believe Martin Midstream’ s third quarter performance should approximate guidance.

在潤滑脂業務中，我們受益於添加劑成本的下降，而在包裝潤滑油業務中，我們不得不取代成本更高的第三方基礎油，推高了我們的單位成本。展望第三季度，我們相信我們的特種產品部門的表現應繼續達到或接近指導水準。整體而言，對於任何異常的營運或天氣事件，我們認為 Martin Midstream 第三季的業績應該與指引大致相符。

Now I'd like to turn the call back over to Sharon to discuss our balance sheet, capital expenditures and capital resources.

現在我想把電話轉回給莎倫，討論我們的資產負債表、資本支出和資本資源。

Thanks Bob. As of June 30, 2024, we had total long-term debt outstanding of $458 million, which was an $8 million increase from our balance on March 31, our revolving credit facility balance was $58 million, and the notional amount of our second lien secured notes was $400 million.

謝謝鮑勃。截至2024 年6 月30 日，我們的長期未償債務總額為4.58 億美元，比3 月31 日的餘額增加了800 萬美元，我們的循環信貸額度餘額為5800 萬美元，我們第二留置權的名目金額為擔保票據金額為 4 億美元。

Our available borrowing capacity under our $150 million revolving credit facility was $83 million, which includes approximately $9 million of issued letters of credit. As you recall that facility commitment dropped from $175 million to $150 million on June 30th, 2024.

我們 1.5 億美元循環信貸額度下的可用借款能力為 8,300 萬美元，其中包括約 900 萬美元已簽發的信用狀。您還記得，2024 年 6 月 30 日，設施承諾從 1.75 億美元降至 1.5 億美元。

At the end of the quarter, our bank compliant adjusted leverage ratio was 3.88 times and interest coverage was 2.21 times. Our leverage goal remains below 3.75 times on a sustained basis, and we continue to work toward that.

截至季末，本行合規調整槓桿率為3.88倍，利息保障倍數為2.21倍。我們的槓桿目標持續保持在3.75倍以下，我們將繼續為此努力。

We spent a total of $20.2 million on capital expenditures during the second quarter with $12.4 million on growth capital projects, of that number gross capital spending related to the Elsa project was $10.6 million, which includesm$4.1 million on the OEM tower and a $6.5 million contribution to the Elsa joint venture.

第二季我們總共花費了2,020 萬美元的資本支出，其中1,240 萬美元用於成長資本項目，其中與Elsa 項目相關的總資本支出為1,060 萬美元，其中包括OEM 塔的410 萬美元和650 萬美元的捐款到埃爾莎合資企業。

For a variety of reasons, which I will discuss in a moment. We are adjusting our total anticipated CapEx spend for 2024 to $58.4 million, up from $49.4 million. Gross capital expenditures are now expected to be approximately $23.1 million, which is a $6 million increase from our original budget of $17.1 million and a variety of the increase is related to two projects, one in our fertilizer division to build additional storage capacity at our Seneca facility and the other in our grease business for improvements at our Kansas city facility.

出於多種原因，我稍後將討論這些原因。我們將 2024 年的預期資本支出總額從 4,940 萬美元調整為 5,840 萬美元。目前預計總資本支出約為2,310 萬美元，比我們最初的1,710 萬美元預算增加了600 萬美元，其中一系列增加與兩個項目有關，其中一個是我們化肥部門在我們的塞內卡(Seneca)建立額外的儲存能力設施和我們潤滑脂業務中的另一個設施，以改善我們堪薩斯城的設施。

On the maintenance side, we have increased forecasted CapEx by approximately $3.3 million to $35.3 million for the year as we have increased the anticipated turnaround costs in our fertilizer plants and incurred higher regulatory inspection costs on the marine equipment used in our sulphur Services business.

在維護方面，我們將今年的預測資本支出增加了約330 萬美元，達到3530 萬美元，因為我們增加了化肥廠的預期週轉成本，並且對我們的硫磺服務業務中使用的船舶設備產生了更高的監理檢查成本。

Our 2024 adjusted EBITDA guidance remains $116.1 million. Even though actual results for the quarter were slightly better, we have reduced full year guidance in the shore-based terminals group and anticipation of maintenance expense impacts related to hurricane barrel.

我們的 2024 年調整後 EBITDA 指引仍為 1.161 億美元。儘管本季度的實際業績略好，但我們降低了岸基碼頭集團的全年指導以及與颶風桶相關的維護費用影響的預期。

Please review the presentation attached to our earnings press release yesterday for 2024 adjusted EBITDA guidance for each individual business. In a moment, I will turn the call back to the operator, but first, I need to inform you that during the Q&A session of today's call, we will not be taking questions about the buyout offer we received from Martin Resource Management Corporation.

請查看我們昨天的收益新聞稿所附的演示文稿，以了解每個業務的 2024 年調整後 EBITDA 指導。稍後，我會將電話轉回接線員，但首先，我需要通知您，在今天電話的問答環節中，我們不會回答有關從馬丁資源管理公司收到的收購要約的問題。

The MMLP Conflicts Committee, which is made up of our three independent directors remains in discussions with MRMC, and we will not speculate as to the direction or outcome of those discussions. So please refrain from questions on this topic.

由我們三位獨立董事組成的 MMLP 衝突委員會仍在與 MRMC 進行討論，我們不會猜測這些討論的方向或結果。因此，請不要提出有關此主題的問題。

With that I'll turn it over to the operator for any other questions you may have.

這樣，我會將其轉交給接線員解答您可能有的任何其他問題。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Selman Akyol, Stifel.

塞爾曼·阿克奧爾，史蒂菲爾。

Can you guys hear me?

你們聽得到我說話嗎？

Yes.

是的。

Okay, great. Good morning. So first of all, just in terms of everything on track there. Any update to timing agents tower comes on sooner than expected? Or anything to just note there?

好的，太好了。早安.首先，就一切都步入正軌而言。計時代理塔的更新是否比預期的早？或是有什麼需要注意的地方？

Yeah, some of this is Randy. Good morning. Everything is on track we will have the only tower and the tie-ins to the also plan to complete by the end of July. We anticipate beginning to ship them the speeds, the stock in the middle of the [Olean] of in the middle of August and at that point deal.

是的，其中一些是蘭迪。早安.一切都按計劃進行，我們將擁有唯一的塔樓和配套設施，也計劃在七月底完成。我們預計在八月中旬開始向他們運送庫存，並在[Olean]中部進行交易。

So plants and venture will begin there, processing and testing and qualification with potential customers. And then the timing of sales potential hasn't changed versus the last several times we spoke about.

因此，工廠和合資企業將從那裡開始，與潛在客戶一起進行加工、測試和鑑定。與我們最近幾次談到的相比，銷售潛力的時機並沒有改變。

Great. Thank you for them on. And then in terms of marine, in aggregate, in terms of day rates, is there any opportunity to putting those contracts on term at all?

偉大的。謝謝你們對他們的支持。然後就海運而言，總的來說，就日費率而言，是否有機會使這些合約到期？

Yes. So we have we have all of our contracts currently. Nothing in the spot market is it's all on some sort of term such as getting us through the end of the third quarter, some of us getting to the end of the year and to the contracts into early the first quarter of next year. So we have been looking to expand the term as customers have been willing to do so.

是的。所以我們目前擁有所有合約。現貨市場上的一切都不是完全取決於某種條款，例如讓我們度過第三季末，我們中的一些人達到年底以及將合約拖到明年第一季初。因此，我們一直在尋求擴大該術語，因為客戶願意這樣做。

Great. Appreciate the update on end in terms of the bridge incident in the pipeline leak. Is that all behind you or is there going to be any increased regulatory looks? Is there anything on that's going to linger beyond?

偉大的。感謝有關管道洩漏橋樑事件的最新消息。這一切都過去了嗎，還是監管力道會加強？有什麼東西會持續下去嗎？

Yes, those are the bridge vision, which happened mid-May that is now in maintenance mode, which basically means we're monitoring the areas that were impacted by the spill site and we expect that to be behind us on the on the crude oil spill and in Smackover, which happened in the middle of last month earlier this week, we went from emergency mode two remediation mode. So we still do have some weeks or months in front of us ongoing remediation there.

是的，這些是橋樑願景，發生在五月中旬，現在處於維護模式，這基本上意味著我們正在監測受洩漏現場影響的區域，我們預計這將在原油方面落後於我們洩漏事件以及本週早些時候發生在上個月中旬的Smackover 事件中，我們從緊急模式轉向了補救模式。因此，我們仍然需要幾週或幾個月的時間進行持續的修復。

Bob, did you have anything to add?

鮑勃，你還有什麼要補充的嗎？

No, I do not well what I will add is we have accrued the full deductible. So we don't believe as far as economic impact to us, there's there should be any more of that as Randy said an ongoing monitoring of the of really both situations.

不，我不太清楚我要補充的是我們已經累積了全額免賠額。因此，我們認為就對我們的經濟影響而言，應該不會有更多的影響，正如蘭迪所說，對這兩種情況的持續監測。

And then could you maybe just you alluded to barrel in mid sounded like you guys were impacted on. Can you just maybe expand on that a little bit?

然後你可能只是提到中間的桶子聽起來像是你們受到了影響。能稍微擴充一下嗎？

Yeah, you know that the hurricane hit us Beaumont over to the Houston area. We have several different sites in Houston that were impacted. I'd say from a maintenance perspective, call it not material. And then you down from really being able to operate for program an entire week there, which, as you know, as we work our way through the year probably won't impact us financially that much, but it also did hit our shore bases in Galveston and Port Arthur, and we'll just have to see how that customers all come back from that.

是的，你知道颶風把我們的博蒙特襲擊到了休士頓地區。我們在休士頓有幾個不同的站點受到了影響。我想說，從維護的角度來看，稱之為非物質的。然後你就真的無法在那裡進行整整一周的計劃，正如你所知，隨著我們全年的工作，這可能不會對我們的財務產生太大影響，但它也確實影響了我們在加爾維斯頓和亞瑟港，我們只需要看看顧客如何從那裡回來。

We could have some impact financially on the shore-based side in that regard. But I'd say the damage would be nonmaterial at our locations although we had damage of our facility.

在這方面，我們可能會對岸上方面產生一些財務影響。但我想說的是，儘管我們的設施受到了損害，但在我們的地點，損害不會是實質的。

I'll add, we really saw no impact to refinery production of sulphur through that storm. Is that a fair statement?

我要補充一點，我們確實沒有看到那場風暴對煉油廠的硫磺生產產生影響。這是一個公平的說法嗎？

That's true. As Bob mentioned earlier nearly 7,700 tonnes a day during the third quarter and into during the second quarter. And then during July, we've just a tad under that, which I don't think barrel had anything to do with it.

這是真的。正如鮑伯之前提到的，第三季和第二季每天接近 7,700 噸。然後在七月份，我們的價格略低於這個水平，我認為這與桶裝沒有任何關係。

Got it. And then just sort of my last question here to kind of relates to that topic. In terms of refinery turnarounds on the anything expected or we expect them no turnarounds during this upcoming quarter.

知道了。然後我的最後一個問題與該主題有關。就煉油廠的周轉情況而言，我們預計在下一個季度不會有任何週轉。

Typically there are turnarounds late third quarter, early fourth quarter. We don't have any knowledge at this point of how the turnarounds would impact us.

通常情況下，第三季末、第四季初會出現轉機。目前我們還不知道這種轉變將如何影響我們。

Got it. Okay, thank you very much.

知道了。好的，非常感謝。

Thank you.

謝謝。

Kyle May, Sidoti and Company.

凱爾·梅，西多蒂公司。

Hi, good morning, everyone.

嗨，大家早安。

Morning.

早晨。

So Sharon, I know you said you're not going to talk about the buyout offer, but maybe just from a different perspective, I was wondering if you can give us any information about the potential time line of the events going forward.

莎倫，我知道你說過你不會談論買斷要約，但也許只是從不同的角度來看，我想知道你是否可以向我們提供有關未來事件的潛在時間表的任何資訊。

I don't think that that I can speak on that. The negotiations that will be occurring are still occurring between MLPs Conflicts Committee and MRMC's advisory firm. I do not have a time line on when they anticipate completing those negotiations, nor do I know if those will be if we will come to an agreement. So I wouldn't like to speculate there.

我認為我無法談論這一點。即將發生的談判仍在 MLP 衝突委員會和 MRMC 諮詢公司之間進行。我沒有確定他們預計何時完成這些談判，我也不知道我們是否會達成協議。所以我不想在那裡猜測。

Understood. Appreciate it. And then maybe in the transportation segment, like you pointed out, land transportation was really strong. I'm just wondering if you could maybe expand on some of the fundamentals of what you experienced in the second quarter and how you think that about that continuing in the third?

明白了。欣賞它。然後也許在交通領域，正如您所指出的，陸路交通確實很強大。我只是想知道您是否可以擴展您在第二季度經歷的一些基本原理，以及您如何看待第三季的持續情況？

Yeah, this is Randy answering. That's a great question. And one that has us scratching our heads a little bit, too, because April and May were fabulous we were strong across the board in all commodities and all routes, June, June, we saw chemicals and lubricants crop.

是的，這是蘭迪的回答。這是一個很好的問題。這也讓我們有點摸不著頭腦，因為四月和五月非常棒，我們在所有商品和所有航線上都表現強勁，六月、六月，我們看到化學品和潤滑油作物。

Then then we know seasonally the butane, of course, in the propane is weak and that is the same trend as we saw a year ago June and July. So spillover slower and then picking back up as we work our way through the summer.

然後我們知道丙烷中的丁烷季節性疲軟，這與我們一年前六月和七月看到的趨勢相同。因此，溢出速度較慢，然後隨著我們整個夏天的努力而回升。

So, you know, we'll see how things go here over the next couple of months, say in that regard, July the first week was tremendous. The second week after girls tweak down a little bit. And we've had our planned new acid plant, which we do in all of our raw materials into their by truck.

所以，你知道，我們將看看接下來幾個月的事情會如何發展，就這方面而言，七月的第一周是巨大的。第二週，女孩們稍微放鬆了一下。我們已經規劃了新的酸廠，我們用卡車將所有原料裝入工廠。

We have had a down month of June and July and that will be coming back up in August and so forth. We're thinking as we get dogs, we might see an uptick again in that business.

我們經歷了六月和七月的下滑，並將在八月恢復，依此類推。我們認為，當我們養狗時，我們可能會看到業務再次上升。

Okay, great. That's really helpful. And last one for me on just with the higher CapEx budget this year, wondering if you could give us an update on how you're thinking about the leverage ratio maybe exiting the year? I know you're looking for that sustained average or the sustained target of 3.75 on the leverage ratio. Just any thoughts about how you see the progression there?

好的，太好了。這真的很有幫助。我的最後一個問題是今年資本支出預算較高，想知道您是否可以向我們介紹一下您對今年可能退出的槓桿率的最新看法？我知道您正在尋找槓桿率的持續平均值或 3.75 的持續目標。您對那裡的進展有什麼想法嗎？

Yeah. I think that where we are right now at 3.8 times when we consider CapEx in the back half of the year, we think we'll exit the year at about the same level.

是的。我認為，當我們考慮今年下半年的資本支出時，我們現在的本益比是 3.8 倍，我們認為今年結束時我們將保持在大致相同的水平。

All right. Great. Appreciate the time this morning.

好的。偉大的。珍惜今天早上的時間。

Thank you, Kyle.

謝謝你，凱爾。

Patrick Fitzgerald, Baird.

派崔克·菲茨杰拉德，貝爾德。

Yeah, is there any way you could talk about the kind of, you know, returns you're expecting to get out of the additional investment in the fertilizer business?

是的，您有什麼辦法可以談談您期望從化肥業務的額外投資中獲得的回報嗎？

Yeah. So that's going to, we -- warehouse is just about complete right now. We're going to what that's going to allow us to do stuff up and up in the Illinois area is run harder during the summer months because of fertilizer that we make up there is traditionally a fall and early winter fertilizer.

是的。所以，我們的倉庫現在即將完成。我們打算做的事情將使我們能夠在伊利諾伊州地區做更多的事情，因為我們在那裡製造的肥料傳統上是秋季和初冬的肥料，因此在夏季的幾個月裡運行會更加困難。

So we're expecting $600,000 to $800,000 bump from doing that. And we expect that to hit things we put in the fourth quarter fourth quarter and guidance.

因此，我們預計這樣做會增加 60 萬至 80 萬美元。我們預計這將達到我們在第四季和指導中提出的目標。

Okay. And then you know, the ounces coming online in the fourth quarter, you're expecting a $0.9 million of EBITDA from that in the fourth quarter. Could you just remind us how that you know, I'm looking at the slide from last year on kind of all the puts and takes like.

好的。然後你知道，第四季的盎司數，你預計第四季的 EBITDA 為 90 萬美元。您能否提醒我們您是如何知道的，我正在看去年的幻燈片，其中涉及所有看跌期權和看跌期權。

Could you remind us like how you expect that to ramp in terms of like additional EBITDA beyond just the fourth quarter. Would you have guided out to and like how much more CapEx needs to go into that? And then there's like a we now have $6.5 million in cash upon commencement of operations. So just if you could talk about that, that would be helpful?

您能否提醒我們，您預計第四季之後的額外 EBITDA 會如何成長？您是否知道並希望這方面還需要多少資本支出？然後，就像我們現在在開始營運時擁有 650 萬美元現金一樣。所以如果你能談談這個，會有幫助嗎？

So we have we have three different streams, which we're going to secure revenue by in those agreements. And the first is a reservation fee to pay us back for the capital we had to spend on the cooling tower. So we could provide the feedstock, but to the to the venture between the three parties and that will begin in October, and that's that $900,000-ish you see and that will be on per quarter and that will be ongoing. And then the second stream would be paid a processing fee we get for actually providing them OEM and that will ramp up once the sales for the partnership began to offer, the venture began to ramp up and we think there might be some sales in the fourth quarter yet tissue the marketing plan definitely had some sales in for early 2025. And marketing plan currently has that ramping up in the second half of 2025.

因此，我們有三種不同的來源，我們將透過這些協議來確保收入。第一個是預訂費，用於償還我們在冷卻水塔上花費的資金。因此，我們可以提供原料，但要提供給三方之間的合資企業，該合資企業將於 10 月開始，這就是您看到的 90 萬美元左右，這將是每季一次，並且將持續進行。然後第二個流將支付我們實際為他們提供 OEM 的加工費，一旦合作夥伴的銷售開始提供，該費用就會增加，合資企業開始增加，我們認為第四個流可能會有一些銷售截至目前，該行銷計劃在2025 年初肯定會實現一些銷售。目前的行銷計畫是在 2025 年下半年加速推進。

That's contingent on the fab by us getting built and operating some. And then at that point, of course, when deals the sales pickup of the venture will start seeing revenue on our percentage share of the venture. And ultimately, we expect a $5 million to $6 million from the total investment in the total investment. We expect to be $26 million to $27 million, which was our capital front and the capital we're putting into the venture.

這取決於我們建造和運營一些晶圓廠。當然，到那時，當交易完成時，該合資企業的銷售回升將開始看到我們在該合資企業中所佔百分比的收入。最終，我們預計總投資額將達到 500 萬至 600 萬美元。我們預計將達到 2,600 萬至 2,700 萬美元，這是我們的資本以及我們投入該合資企業的資本。

So I'll add on there, the $6.5 million that you spoke to that was spent this quarter that was the contribution to Elsa joint venture itself. And as far as due to OEM tower, we have an additional approximate $3 million left on that project.

因此，我要補充一點，您提到的本季度花費的 650 萬美元是對 Elsa 合資企業本身的貢獻。至於 OEM 塔，我們在該項目上還剩下大約 300 萬美元。

Okay, thanks. Thanks a lot.

好的，謝謝。多謝。

And that concludes our Q&A session. I would like to turn the conference back over to Bob Bondurant for closing remarks.

我們的問答環節到此結束。我想將會議轉回鮑勃邦杜蘭特 (Bob Bondurant) 致閉幕詞。

Thank you, Audra. Appreciate everyone on the call today. And just a final note, we were pleased to have a ribbon-cutting ceremony for the DSM Semichem plant with our Dongjin Samsung partners on Monday and look forward to beginning production at that facility very soon. Thanks again.

謝謝你，奧德拉。感謝今天通話中的每個人。最後一點，我們很高興於週一與東進三星合作夥伴為 DSM Semichem 工廠舉行剪綵儀式，並期待工廠很快開始生產。再次感謝。

And this concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。