TransMontaigne Partners L.P. Announces Financial Results

For The Quarter Ended March 31, 2016

Denver, Colorado—TransMontaigne Partners L.P. (NYSE:TLP) (the partnership, we, us, our) today announced first quarter 2016 financial and operating results.

The Partnership reported Consolidated EBITDA of $24.1 million and Distributable Cash Flow of $19.1 million for the first quarter of 2016, compared to Consolidated EBITDA of $21.3 million and Distributable Cash Flow of $18.1 million for the first quarter of 2015.  We previously announced a quarterly cash distribution of $0.68 per unit for the three months ended March 31, 2016, a sequential increase of 1.5% and an increase of 2.3% over the prior year. Distribution coverage for the first quarter of 2016 was 1.46x compared to 1.43x in the first quarter of 2015.

“2016 is off to an exciting and positive start here at TransMontaigne.  In addition to another solid quarter and growth in our business, we announced three major developments,” said Fred Boutin, CEO of TransMontaigne Partners.  “First, we have a new relationship with ArcLight Capital Partners following their affiliate’s acquisition of our general partner from NGL Energy Partners.  ArcLight is a highly experienced energy sponsor with a proven track record of value creation.  ArcLight subsequently purchased all of the TLP common units previously owned by NGL, reflecting ArcLight’s commitment to the long-term growth and success of TLP.  Second, we announced the second consecutive increase in our distribution, reflecting the strength of our business, a balance sheet that is positioned for future growth and a new and supportive general partner. Third, we obtained the remaining commitments needed to support construction of approximately 2.0 million barrels of new tankage at our Collins, Mississippi terminal.  We expect this project will cost approximately $75 million and generate a return in the high-teens.”

Financial Results

An overview of the financial performance for the quarter ended March 31, 2016 compared to the quarter ended March 31, 2015, includes:

Our terminaling services agreements are structured as either throughput agreements or storage agreements.  Most of our throughput agreements contain provisions that require our customers to throughput a minimum volume of product at our facilities over a stipulated period of time, which results in a minimum amount of revenue. Our storage agreements require our customers to make minimum payments based on the volume of storage capacity made available to the customer under the agreement, which also results in a minimum amount of revenue. We refer to these minimum amounts of revenue recognized pursuant to our terminaling services agreements as being “firm commitments.” Revenue recognized in excess of firm commitments and revenue recognized based solely on the volume of product distributed or injected are referred to as “variable.” Our revenue was as follows (in thousands):

The amount of revenue recognized as “firm commitments” based on the remaining contractual term of the terminaling services agreements that generated “firm commitments” for the quarter ended March 31, 2016 was as follows (in thousands):

Our investments in unconsolidated affiliates include a 42.5% interest in BOSTCO and a 50% interest in Frontera. BOSTCO is terminal facility located on the Houston Ship Channel that encompasses approximately 7.1 million barrels of distillate, residual and other black oil product storage.  Frontera is a terminal facility located in Brownsville, Texas that encompasses approximately 1.5 million barrels of light petroleum product storage capacity, as well as related ancillary facilities.

The following table summarizes our investments in unconsolidated affiliates:

Earnings from investments in unconsolidated affiliates were as follows (in thousands):

Cash distributions received from unconsolidated affiliates were as follows (in thousands):

Recent Developments

Change in control of the ownership of our general partner. Effective February 1, 2016, affiliates of ArcLight Energy Partners Fund VI, L.P. (“ArcLight”) purchased a 100% ownership interest in TransMontaigne GP LLC from NGL Energy Partners LP (NGL).  TransMontaigne GP LLC is our general partner and holds a 2% general partner interest and 100% of the incentive distribution rights (IDRs). The ArcLight acquisition resulted in a change in control of our partnership.  In addition, on April 1, 2016, affiliates of ArcLight acquired approximately 3.2 million of our common LP units from NGL.  With the purchase of the common units, ArcLight has a significant interest in our partnership through their ownership of the general partner interest, the incentive distribution rights and approximately 20% of the limited partner interests.

Second consecutive increase in quarterly distribution.  On April 18, 2016, we announced a quarterly distribution of $0.68 per unit for the three months ended March 31, 2016.  This $0.01 increase over the previous quarter reflects the second consecutive increase in our distribution.  The distribution is payable on May 9, 2016 to unitholders of record on April 29, 2016.

Expansion of the Collins/Purvis bulk storage terminal.  As previously announced, we have entered into long-term terminaling services agreements with various parties for approximately 2.0 million barrels of new product storage capacity at our Collins/Purvis, Mississippi bulk storage terminal.  The revenue associated with these agreements will come on-line upon completion of the construction of the new tank capacity, which we expect to occur during the fourth quarter of 2016 through the second quarter of 2017.  The anticipated cost of the new storage capacity is approximately $75 million, with expected annual cash returns in the high-teens.  During the first quarter of 2016, we began construction and have spent

approximately $8.1 million on the project as of March 31, 2016.  Our Collins/Purvis terminal is strategically located for the bulk storage market and is the only independent terminal capable of receiving from, delivering to, and transferring refined petroleum products between the Colonial and Plantation pipeline systems.  Our facility has current active storage capacity of approximately 3.4 million barrels, which does not include the approximately 2.0 million barrels that is under construction.  We have begun the process of permitting 5.0 million barrels of additional capacity and are discussing this future capacity with several potential customers.

Possible joint venture to construct a South Texas refined products pipeline. On April 4, 2016, we announced that together with Magellan Midstream Partners, L.P. (Magellan) we are exploring the development of a new pipeline in South Texas. This would include construction of approximately 150 miles of 16-inch pipeline capable of transporting 150,000 barrels per day (bpd) of gasoline, diesel, propane and/or condensate from Magellan’s Corpus Christi, Texas terminal to our Brownsville, Texas terminal.  The pipeline would be capable of meeting market demand in Brownsville and other South Texas markets or for ultimate delivery to Mexico via truck, rail or connections to pipelines owned by us and other third parties.  If warranted by additional demand, the pipeline capacity could be expanded to 250,000 bpd.  Subject to receipt of necessary permits, regulatory approvals and sufficient customer demand, the potential pipeline could be operational by the end of 2018.

Liquidity and Capital Resources

TransMontaigne Partners L.P. also released the following statements regarding its current liquidity and capital resources:

Attachment A contains additional selected financial information and results of operations. Attachment B contains a reconciliation of net earnings to the computation of our distributable cash flow and Consolidated EBITDA.

Conference Call

On Thursday, May 5, 2016, the Partnership will hold a conference call for analysts and investors at 12:00 p.m. Eastern Time to discuss TLP’s first quarter 2016 results.  Hosting the call will be Fred Boutin, Chief Executive Officer, Rob Fuller, Chief Financial Officer and Gregory Pound, Chief Operating Officer.  The call can be accessed live over the telephone by dialing (888) 819-8006, or for international callers, (913) 312-0390.  A replay will be available shortly after the call and can be accessed by dialing (888) 203-1112, or for international callers (719) 457-0820.  The passcode for the replay is 4758720.  The replay will be available until May 13, 2016.

Interested parties may also listen to a simultaneous webcast of the conference call by logging onto TLP’s website at www.transmontaignepartners.com under the Investors Information section. A replay of the webcast will also be available for approximately seven days following the call. 

Contact:

TransMontaigne Partners L.P.

(303) 626-8200

Frederick W. Boutin, Chief Executive Officer

Robert T. Fuller, Chief Financial Officer

Gregory J. Pound, Chief Operating Officer

Attachment A

Selected Financial Information and Results of Operations

The following selected financial information is extracted from our Quarterly Report on Form 10-Q for the three months and year ended March 31, 2016, which was filed on May 5, 2016 with the Securities and Exchange Commission (in thousands, except per unit amounts):

Selected results of operations data for each of the quarters in the years ended December 31, 2016 and 2015 are summarized below (in thousands):

Attachment B

Distributable Cash Flow

The following summarizes our distributable cash flow for the period indicated (in thousands):

Distributable cash flow, the distribution coverage ratio and Consolidated EBITDA are not computations based upon generally accepted accounting principles. The amounts included in the computations of our distributable cash flow and Consolidated EBITDA are derived from amounts separately presented in our consolidated financial statements, notes thereto and “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q for the three months ended March 31, 2016, which was filed with the Securities and Exchange Commission on May 5, 2016.  Distributable cash flow and Consolidated EBITDA should not be considered in isolation or as an alternative to net earnings or operating income, as an indication of our operating performance, or as an alternative to cash flows from operating activities as a measure of liquidity. Distributable cash flow and Consolidated EBITDA are not necessarily comparable to similarly titled measures of other companies. Distributable cash flow and Consolidated EBITDA are presented here because they are widely accepted financial indicators used to compare partnership performance.  Further, Consolidated EBITDA is calculated consistent with the provisions our credit facility and is a financial performance measure used in the calculation of our leverage ratio requirement.  We believe that these measures provide investors an enhanced perspective of the operating performance of our assets, the cash we are generating and our ability to make distributions to our unitholders and our general partner.

About TransMontaigne Partners L.P.

TransMontaigne Partners L.P. is a terminaling and transportation company based in Denver, Colorado with operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio Rivers, and in the Southeast. We provide integrated terminaling, storage, transportation and related services for customers engaged in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Light refined products include gasolines, diesel fuels, heating oil and jet fuels; heavy refined products include residual fuel oils and asphalt.  We do not purchase or market products that we handle or transport. News and additional information about TransMontaigne Partners L.P. is available on our website:  www.transmontaignepartners.com.

About ArcLight Capital Partners

ArcLight is one of the leading private equity firms focused on North American and Western European energy assets.  Since its establishment in 2001, ArcLight has invested over $15.3 billion across multiple energy cycles in more than 97 investments.  Headquartered in Boston, MA with an additional office in Luxembourg, the firm’s investment team brings extensive energy expertise, industry relationships and specialized value creation capabilities to its portfolio.  More information about ArcLight, as well as a complete list of ArcLight’s portfolio companies, can be found at http://arclightcapital.com.

Forward‑Looking Statements

This press release includes statements that may constitute forward‑looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Although the company believes that the expectations reflected in such forward‑looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Key risk factors associated with the Collins/Purvis terminal expansion include, without limitation: (i) the ability to complete construction of the project on time and at expected costs; (ii) the ability to obtain required permits and other approvals on a timely basis; (iii) disruption in the debt and equity markets that negatively impacts the company’s ability to finance capital spending, (iv) the occurrence of operational hazards, weather related events or unforeseen interruption; and (v) the failure of our customers or vendors to satisfy or continue contractual obligations. Key risk factors associated with the potential pipeline project with Magellan include without limitation: (i) the ability to negotiate and sign definitive agreements between the project sponsors and with potential customers; (ii) the ability to obtain all required rights-of-way, permits and regulatory or other approvals on a timely basis and (iii) further evaluation of the viability of the potential project once additional necessary engineering and commercial assessments are complete.  Additional important factors that could cause actual results to differ materially from the company’s expectations and may adversely affect its business and results of operations are disclosed in "Item 1A. Risk Factors" in the company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 10, 2016. 

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