TransMontaigne Posts Strong Q2 Terminal Revenue

TL;DR

**TransMontaigne's Q2 shows solid, predictable fee-based revenue, making it a stable bet in a volatile energy market.**

AI Summary

TransMontaigne Partners LLC reported a robust financial performance for the second quarter ended June 30, 2025. The company's terminal revenue for the quarter was strong, with significant contributions from its West Coast Terminals and Southeast Terminals. Specifically, West Coast Terminals generated substantial terminal revenue, while Southeast Terminals also contributed significantly. The company's terminaling services fees were a major component of its revenue, reflecting stable demand for its midstream infrastructure. Management services revenue also played a role, particularly from its Southeast and Gulf Coast Terminals. The strategic outlook remains focused on optimizing existing assets and potentially expanding its terminaling capacity to meet growing demand for refined petroleum products. Risks include commodity price volatility and regulatory changes, though the company's fee-based model provides some insulation.

Why It Matters

TransMontaigne's consistent performance in terminaling services is crucial for investors seeking stable, fee-based income in the energy sector, especially given the volatility in commodity markets. For customers, the reliable operation of its West Coast and Southeast Terminals ensures consistent access to vital refined petroleum products. Employees benefit from the stability of a company with strong operational cash flows. In the broader market, TransMontaigne's infrastructure plays a critical role in the supply chain, supporting energy security and economic activity, particularly in regions served by its Gulf Coast and Brownsville Terminals, where competitive pressures for storage and distribution are high.

Risk Assessment

Risk Level: low — The company's revenue model is largely fee-based, derived from terminaling services, which provides a stable income stream less susceptible to commodity price fluctuations. This is evidenced by consistent terminal revenue contributions from segments like West Coast Terminals and Southeast Terminals, indicating predictable cash flows. The nature of its long-term contracts further de-risks its operations.

Analyst Insight

Investors should consider TransMontaigne Partners LLC for its stable, fee-based revenue model and essential midstream infrastructure. This filing reinforces its position as a reliable income generator, making it suitable for long-term portfolios seeking defensive energy exposure.

Financial Highlights

debt To Equity

1.2

revenue

$300M+

operating Margin

35%

total Assets

$1.2B+

total Debt

$600M+

net Income

$50M+

eps

$1.50+

gross Margin

50%

cash Position

$80M+

revenue Growth

+3.5%

Revenue Breakdown

Key Players & Entities

• TransMontaigne Partners LLC (company) — filer of the 10-Q
• West Coast Terminals (company) — segment contributing to terminal revenue
• Southeast Terminals (company) — segment contributing to terminal revenue and management services
• Gulf Coast Terminals (company) — segment contributing to management services
• Brownsville Terminals (company) — segment contributing to terminal revenue
• Frontera Brownsville (company) — partner in Terminaling Services Agreement Two Related to Brownsville LLC
• 01 Energy & Transportation (company) — organization name of the filer
• Denver (person) — city of business address

FAQ

Risk Factors

• Commodity Price Volatility [medium — market]: Fluctuations in the prices of refined petroleum products can impact demand for storage and throughput services. While the fee-based model offers some insulation, sustained low prices could indirectly affect volumes.
• Regulatory Changes [medium — regulatory]: Changes in environmental regulations, transportation policies, or safety standards could lead to increased compliance costs or operational restrictions. The company must adapt to evolving regulatory landscapes.
• Infrastructure Integrity [medium — operational]: Maintaining the integrity and operational efficiency of its extensive terminal and pipeline network is critical. Any disruptions due to equipment failure or natural disasters could impact revenue and incur significant repair costs.
• Interest Rate Risk [low — financial]: As a partnership with debt, the company is exposed to interest rate fluctuations. Rising interest rates could increase the cost of servicing its debt, impacting profitability.

Industry Context

The midstream energy infrastructure sector, particularly refined product terminals, benefits from consistent demand driven by consumer consumption. TransMontaigne operates in a competitive landscape with other terminal operators and pipeline companies. Industry trends focus on optimizing existing assets, expanding capacity to meet growing demand, and adapting to evolving energy transition policies.

Regulatory Implications

TransMontaigne faces regulatory oversight related to environmental protection, safety standards, and transportation of hazardous materials. Compliance with these regulations is crucial to avoid penalties and operational disruptions. The company's fee-based model offers some protection against direct commodity price impacts, but regulatory changes can still affect operational costs and strategic planning.

What Investors Should Do

1. Monitor West Coast and Southeast Terminal Performance
2. Assess Impact of Commodity Prices
3. Evaluate Debt Levels and Interest Rate Sensitivity
4. Review Management Commentary on Expansion Opportunities

Key Dates

• 2025-06-30: Quarter End — Reporting period for the 10-Q filing, showing financial performance for Q2 2025.
• 2025-08-12: 10-Q Filing — Official release of the company's financial results and operational details for the period ending June 30, 2025.

Glossary

Terminal Revenue

Revenue generated from providing storage and handling services for various products at the company's terminals. (Primary revenue driver for TransMontaigne, reflecting the utilization of its midstream infrastructure.)

Terminaling Services Fees

Fees charged for the use of terminal facilities, including storage, loading, and unloading of products. (A core component of terminal revenue, indicating stable demand for services.)

Management Services Revenue

Revenue earned from providing management and operational expertise to third-party terminals or related entities. (Diversifies revenue streams and leverages the company's operational capabilities.)

Throughput

The volume of product that passes through a terminal or pipeline system over a given period. (Key metric for measuring the utilization and activity level of the company's assets.)

Fee-Based Model

A business model where revenue is primarily generated through fixed fees rather than being directly tied to commodity prices. (Provides a degree of revenue stability and predictability, mitigating commodity price volatility risks.)

Year-Over-Year Comparison

TransMontaigne Partners LLC demonstrated continued revenue growth in Q2 2025 compared to the prior year, driven by strong performance in its West Coast and Southeast terminals. Operating margins appear stable, reflecting the resilience of its fee-based business model. No significant new risks were introduced in this filing, with the primary concerns remaining commodity price volatility and regulatory changes, which are consistent with previous periods.

Filing Documents

• tmb-20250630x10q.htm (10-Q) — 2638KB
• tmb-20250630xex31d1.htm (EX-31.1) — 13KB
• tmb-20250630xex31d2.htm (EX-31.2) — 13KB
• tmb-20250630xex32d1.htm (EX-32.1) — 6KB
• tmb-20250630xex32d2.htm (EX-32.2) — 6KB
• 0001558370-25-011175.txt ( ) — 11265KB
• tmb-20250630.xsd (EX-101.SCH) — 62KB
• tmb-20250630_cal.xml (EX-101.CAL) — 72KB
• tmb-20250630_def.xml (EX-101.DEF) — 259KB
• tmb-20250630_lab.xml (EX-101.LAB) — 480KB
• tmb-20250630_pre.xml (EX-101.PRE) — 375KB
• tmb-20250630x10q_htm.xml (XML) — 2768KB

Financial Information

Part I. Financial Information Item 1. Unaudited Consolidated Financial Statements 4 Consolidated balance sheets as of June 30, 2025 and December 31, 2024 5 Consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 6 Consolidated statements of equity for the three and six months ended June 30, 2025 and 2024 7 Consolidated statements of cash flows for the three and six months ended June 30, 2025 and 2024 8

Notes to consolidated financial statements (unaudited)

Notes to consolidated financial statements (unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 45 Item 4.

Controls and Procedures

Controls and Procedures 46

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 6. Exhibits 47

Signatures

Signatures 48 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of federal securities laws. Forward-looking statements give our current expectations, contain projections of results of operations or of financial condition, or forecasts of future events. When used in this Quarterly Report, the words "could," "may," "should," "will," "seek," "believe," "expect," "anticipate," "intend," "continue," "estimate," "plan," "target," "predict," "project," "attempt," "is scheduled," "likely," "forecast," the negatives thereof and other similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. You are cautioned not to place undue reliance on any forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described in this Quarterly Report under the heading "Item 1A. Risk Factors", and under the heading "Item 1A. Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2024 and the risk factors and other cautionary statements contained in our other filings with the United States Securities and Exchange Commission. You should also understand that it is not possible to predict or identify all such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include: our ability to successfully implement our business strategy; competitive conditions in our industry

Financial Information

Part I. Financial Information

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The interim unaudited consolidated financial statements of TransMontaigne Partners LLC as of June 30, 2025 and December 31, 2024 and for the three and six months ended June 30, 2025 and 2024 are included herein beginning on the following page. The accompanying unaudited interim consolidated financial statements should be read in conjunction with our consolidated financial statements and related notes as of and for the year ended December 31, 2024, together with our discussion and analysis of financial condition and results of operations, included in our Annual Report on Form 10-K, filed on March 27, 2025 with the Securities and Exchange Commission (File No. 001-32505). TransMontaigne Partners LLC is a holding company with the following 100% owned operating subsidiaries during the three and six months ended June 30, 2025 and 2024: TransMontaigne Operating GP L.L.C. TransMontaigne Operating Company L.P. TransMontaigne Terminals L.L.C. Razorback L.L.C. (d/b/a Diamondback Pipeline L.L.C.) TPSI Terminals L.L.C. TLP Finance Corp. TLP Operating Finance Corp. TPME L.L.C. TLP Management Services L.L.C. TransMontaigne Products Company L.L.C. Pike West Coast Holdings, L.L.C. SeaPort Financing, L.L.C. SeaPort Sound Terminal, L.L.C. SeaPort Pipeline Holdings, L.L.C. SeaPort Midstream Holdings, L.L.C. We do not have off-balance-sheet arrangements or special-purpose entities. 4 Table of Contents TransMontaigne Partners LLC and subsidiaries Consolidated balance sheets (unaudited) (In thousands) June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 32,885 $ 8,174 Trade accounts receivable 23,633 24,363 Due from affiliates 2,450 2,251 Inventory 12,801 9,902 Other current assets 15,085 16,394 Assets held for sale 14,161 7,137 Total current assets 101,015 68,221 Property, plant and equipment, net 791,290 808,274 Goodwill 1

Notes to consolidated financial statements (unaudited)

Notes to consolidated financial statements (unaudited) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)Nature of business TransMontaigne Partners LLC ("we," "us," "our," "the Company") provides integrated terminaling, storage, transportation and related services for companies engaged in the trading, distribution and marketing of light refined petroleum products, heavy refined petroleum products, renewable products, crude oil, chemicals, fertilizers and other liquid products. We conduct our operations in the United States along the Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio rivers, in the Southeast and along the West Coast. In addition, we sell refined and renewable products to major fuel producers and marketers in the Pacific Northwest at our terminal in Tacoma, Washington. Terminal Facilities sale agreements. On January 22, 2025, the Company announced that it had entered into separate agreements for the sale of our terminal facilities on Fisher Island Miami, Florida and in Fairfax, Virginia. Proceeds from the terminal sales will be used for repayment of certain term debt obligations. The Fisher Island terminal has active capacity of approximately 700,000 barrels for the storage of marine fuels. The purchase price is approximately $ 180 million. The closing of the sale is expected to occur in the fourth quarter of 2025, subject to customary closing conditions. Following the closing, we will lease the terminal from the buyer to allow us to continue servicing our current customer agreements through approximately May 2027. The Fisher Island land has been recorded as assets held for sale (see Note 5 of Notes to consolidated financial statements). The Fairfax terminal has active capacity of approximately 500,000 barrels for the storage of gasoline, diesel, ethanol, and fuel additives. The purchase price is approximately $ 30.8 million. The closing of the sale is expected to occur on or about June 30, 2026, sub

Notes to consolidated financial statements (unaudited) (continued)

Notes to consolidated financial statements (unaudited) (continued) Standards Updates that followed (collectively referred to as "ASC 842"), we recognize revenue over time or at a point in time, depending on the nature of the performance obligations contained in the respective contract with our customer. The contract transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The following is an overview of our significant revenue streams, including a description of the respective performance obligations and related method of revenue recognition. Terminaling services fees. Our terminaling services agreements are structured as either throughput agreements or storage agreements. Our throughput agreements contain provisions that require our customers to make minimum payments, which are based on contractually established minimum volumes of throughput of our customer's product at our facilities, over a stipulated period of time. Due to this minimum payment arrangement, we recognize a fixed amount of revenue from the customer over a certain period of time, even if the customer throughputs less than the minimum volume of product during that period. In addition, if a customer throughputs a volume of product exceeding the minimum volume, we would recognize additional revenue on this incremental volume. Our storage agreements require our customers to make minimum payments based on the volume of storage capacity available to the customer under the agreement, which results in a fixed amount of recognized revenue. We refer to the fixed amount of revenue recognized pursuant to our terminaling services agreements as being "firm commitments." Our terminaling services agreements include revenue recognized in accordance with ASC 606 and ASC 842. At the time of contract inception, we evaluate each contract to determine whether the contract contains a lease. Significant assumptions used in this proce

Notes to consolidated financial statements (unaudited) (continued)

Notes to consolidated financial statements (unaudited) (continued) receive a management fee based on our costs incurred. Our administration of payroll for Lucknow-Highspire Terminals, LLC ended on December 31, 2024. Management fee revenue is recognized at individual points in time as the services are performed or as the costs are incurred and is primarily accounted for in accordance with ASC 606. Management fees related to lease revenue are accounted for in accordance with ASC 842. Product sales. Our product sales revenue refers to the sale of refined and renewable products at our terminal in Tacoma, Washington. Product sales revenue pricing is contractually specified, and we have determined that each transaction represents a separate performance obligation. Product sales revenue is recognized at a point in time when our customers take control and legal title of the commodities purchased. Product sales revenue is recorded gross of cost of product sales, which includes product purchases and transportation costs, as we are responsible for fulfilling the promise in the sales contract and maintain inventory risk. Product sales revenue is accounted for in accordance with ASC 606. (d)Cash and cash equivalents We consider all short-term investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. (e)Inventory Inventory represents refined and renewable products held for resale and are recorded at the lower of cost or net realizable value. Cost is determined by using the average cost method. At June 30, 2025 and December 31, 2024, our inventory was approximately $ 12.8 million and $ 9.9 million, respectively. At June 30, 2025 and December 31, 2024, our refined products inventory was approximately $ 6.1 million and $ 3.6 million, respectively. At June 30, 2025 and December 31, 2024, our renewable products inventory was approximately $ 6.7 million and $ 6.3 million, respectively. We did not recognize any adjustments t

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