TransMontaigne Partners L.P. Announces Financial Results for the Three Months and the Year Ended December 31, 2015 and the Filing of Its Annual Report on Form 10-K

TransMontaigne Partners L.P. (NYSE:TLP) today announced its financial
results for the three months and the year ended December 31, 2015.

FINANCIAL RESULTS

An overview of the financial performance for the year ended December 31,
2015 compared to the year ended December 31, 2014, includes:

• Distributable cash flow for the year ended December 31, 2015 was $70.7
  million compared to $65.7 million for the year ended December 31, 2014.
  • The distribution declared per limited partner unit was $2.665 per
    unit for the year ended December 31, 2015 compared to $2.655 per
    unit for the year ended December 31, 2014.
  • We paid aggregate distributions of $50.7 million for the year
    ended December 31, 2015, resulting in an annual distribution
    coverage ratio of 1.39x.
• Consolidated EBITDA for the year ended December 31, 2015 was $89.6
  million compared to $74.8 million for the year ended December 31, 2014.
• Operating income for the year ended December 31, 2015 was $49.9
  million compared to $38.9 million for the year ended December 31,
  2014, principally due to the following:
  • Revenue was $152.5 million compared to $150.1 million due to
    increases in revenue at the Brownsville and River terminals of
    approximately $4.3 million and $0.9 million, respectively, offset
    by decreases in revenue at the Gulf Coast, Midwest and Southeast
    terminals of approximately $1.5 million, $0.4 million and $0.8
    million, respectively.
  • Direct operating costs and expenses were $64.0 million compared to
    $66.2 million due to decreases in direct operating costs and
    expenses at the Gulf Coast, Midwest, Brownsville and River
    terminals of approximately $0.3 million, $0.1 million, $2.1
    million and $0.9 million, respectively, offset by an increase in
    direct operating costs and expenses at the Southeast terminals of
    approximately $1.2 million.
  • An increase in depreciation and amortization expenses of
    approximately $1.1 million.
  • An increase in earnings from investments in unconsolidated
    affiliates of $7.5 million, which was primarily attributable to
    the BOSTCO terminal being fully operational throughout 2015.
• Annual net earnings for the year ended December 31, 2015 were $41.7
  million compared to $32.5 million for the year ended December 31,
  2014, principally due to the changes in annual operating income
  discussed above, offset by an increase in interest expense of
  approximately $1.9 million.
• Annual net earnings per limited partner unit was $2.12 per unit for
  the year ended December 31, 2015 compared to $1.57 per unit for the
  year ended December 31, 2014.

An overview of the financial performance for the quarter ended
December 31, 2015 compared to the quarter ended December 31, 2014,
includes:

• Distributable cash flow for the quarter ended December 31, 2015 was
  $18.5 million compared to $14.9 million for the quarter ended
  December 31, 2014.
  • The distribution declared per limited partner unit was $0.67 per
    unit for the quarter ended December 31, 2015 compared to $0.665
    per unit for the quarter ended December 31, 2014.
  • We paid aggregate distributions of $12.8 million for the quarter
    ended December 31, 2015, resulting in a quarterly distribution
    coverage ratio of 1.45x.
• Consolidated EBITDA for the quarter ended December 31, 2015 was $23.4
  million compared to $18.3 million for the quarter ended December 31,
  2014.
• Operating income for the quarter ended December 31, 2015 was $13.1
  million compared to $7.9 million for the quarter ended December 31,
  2014, principally due to the following:
  • Revenue was $40.3 million compared to $36.9 million due to
    increases in revenue at the Gulf Coast, River and Southeast
    terminals of approximately $3.4 million, $0.4 million and $0.4
    million, respectively, offset by decreases in revenue at the
    Midwest and Brownsville terminals of approximately $0.2 million
    and $0.6 million, respectively.
  • Direct operating costs and expenses were $16.6 million compared to
    $17.9 million due to decreases in direct operating costs and
    expenses at the Midwest, Brownsville, River and Southeast
    terminals of approximately $0.2 million, $1.1 million, $0.5
    million and $0.1 million, respectively, offset by an increase in
    direct operating costs and expenses at the Gulf Coast terminals of
    approximately $0.6 million.
  • A decrease in direct general and administrative expenses of
    approximately $0.3 million.
  • An increase in depreciation and amortization expenses of
    approximately $0.8 million.
  • An increase in earnings from investments in unconsolidated
    affiliates of $0.8 million.
• Quarterly net earnings for the quarter ended December 31, 2015 were
  $11.7 million compared to $5.9 million for the quarter ended
  December 31, 2014, principally due to the changes in quarterly
  operating income discussed above and a decrease in interest expense of
  approximately $0.5 million.
• Quarterly net earnings per limited partner unit was $0.60 per unit for
  the quarter ended December 31, 2015 compared to $0.26 per unit for the
  quarter ended December 31, 2014.

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 fixed amount of revenue to be recognized by us. 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 results in a fixed amount of revenue to be
recognized by us. We refer to the fixed amount 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 year ended December 31, 2015 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 a newly constructed
terminal facility located on the Houston Ship Channel. BOSTCO began
initial commercial operations in the fourth quarter of 2013, with the
completion of its approximately 7.1 million barrels of storage capacity
and related infrastructure occurring at the end of the third quarter of
2014. 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 our general partner. Effective
February 1, 2016, NGL Energy Partners LP (“NGL”) consummated the sale of
its indirect 100% ownership interest in TransMontaigne GP L.L.C. to an
affiliate of ArcLight Energy Partners Fund VI, L.P. (“ArcLight”) for
$350 million in cash (“the Transaction”). TransMontaigne GP L.L.C. is
our general partner, and it holds the 2% general partner interest and
incentive distribution rights of our partnership. The Transaction
resulted in a change in our controlling ownership. The Transaction did
not involve any of our limited partnership units held by the public, and
our limited partnership units continue to trade on the New York Stock
Exchange.

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,
Massachusetts with an additional office in Luxembourg, the firm’s
investment team brings extensive energy expertise, industry
relationships and specialized value creation capabilities to our
operations.

Upon the closing of the Transaction, Atanas H. Atanasov, Benjamin
Borgen, Brian Cannon and Donald M. Jensen, each employees of NGL,
resigned from the board of directors of our general partner. To fill the
vacancies resulting from the resignation of the NGL Directors, Daniel R.
Revers, Kevin M. Crosby and Lucius H. Taylor, each employees of
ArcLight, were appointed to the board of directors of our general
partner effective February 1, 2016. Theodore D. Burke, also an employee
of ArcLight, was subsequently appointed to the board of directors of our
general partner effective February 22, 2016.

In connection with the consummation of the Transaction, our Southeast
terminaling services agreement with NGL was amended to extend the term
of the agreement through July 31, 2040 at the prevailing contract rates
contained within the agreement. Subsequent to January 31, 2023, NGL has
the ability to terminate the agreement at any time upon at least 24
months’ prior notice of its intent to terminate the agreement. In
addition, we also amended and restated our omnibus agreement to assign
it from TransMontaigne LLC to ArcLight and to remove certain legacy
provisions that were no longer applicable. Under the omnibus agreement,
we pay ArcLight (and prior to the Transaction we paid TransMontaigne
LLC, a wholly owned subsidiary of NGL,) an administrative fee for the
provision of certain management, legal, accounting, tax, corporate
staff, engineering and other support services. The omnibus agreement
will continue in effect until the earlier to occur of (i) ArcLight
ceasing to control our general partner or (ii) the election of us or
ArcLight, following at least 24 months’ prior written notice to the
other party of the intent to terminate the agreement. The amended and
restated omnibus agreement did not change the financial terms,
substantive rights or obligations of the parties.

Expansion of the Collins/Purvis bulk storage terminal. Our
Collins/Purvis, Mississippi bulk storage terminal, with a current active
storage capacity of approximately 3.4 million barrels, is the only
independent terminal capable of receiving from, delivering to, and
transferring refined petroleum products between the Colonial and
Plantation pipeline systems. We are in the process of expanding the
capacity at this terminal, and the status of our expansion effort is as
follows:

• In October 2015 we entered into a six-year terminaling services
  agreement with NGL for approximately 1.2 million barrels of new
  product storage capacity and approximately 0.1 million barrels of
  existing storage capacity. The terminaling services agreement with NGL
  was effective January 1, 2016 with the majority of the contract
  revenue to come on-line upon completion of the construction of the new
  tank capacity.
• In the first quarter of 2016 we entered into five-year terminaling
  services agreements with various third parties for approximately 0.8
  million barrels of new product storage capacity. The term of the
  terminaling services agreements will commence upon construction of the
  new tank capacity.

The above additional capacity brings the total new tank capacity
currently under construction at our Collins/Purvis facility to
approximately 2.0 million barrels, at an expected cost of approximately
$75 million. The completion of the construction of the new tank
capacity, which is commensurate with the associated new contract revenue
coming on-line, is expected to occur during the fourth quarter of 2016
through the second quarter of 2017. In addition, during 2015 we
purchased land adjacent to our Collins/Purvis facility and have begun
the process of permitting at least 3.0 million barrels of additional
capacity. We are in discussions with potential customers for this future
capacity.

Purchase of the Port Everglades hydrant system. Effective
January 28, 2016, we acquired from TransMontaigne LLC its Port
Everglades, Florida hydrant system for a cash payment of $12 million.
The hydrant system encompasses a system of pipelines that connect the
Port’s ship berths to our Port Everglades North terminal. It is the only
pipeline system in Port Everglades for fueling cruise ships, and it is
currently under contract with one of our existing terminal customers for
approximately three more years.

Increase in quarterly distribution. On January 19, 2016,
we announced a distribution of $0.67 per unit for the period from
October 1, 2015 through December 31, 2015. The distribution represented
a $0.005 increase over the previous quarter and the first increase in
the distribution from the previous six quarters. The distribution was
paid on February 8, 2016 to unitholders of record on January 29, 2016.

LIQUIDITY AND CAPITAL RESOURCES

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

• Our credit facility provides for a maximum borrowing line of credit
  equal to $400 million. The credit facility allows us to make up to
  $125 million in additional future joint venture investments, which may
  include additional investments in BOSTCO. The terms of the credit
  facility also permit us to issue senior unsecured notes. Further, at
  our request, the maximum borrowing line of credit can be increased by
  an additional $100 million, subject to the approval of the
  administrative agent and the receipt of additional commitments from
  one or more lenders. The credit facility expires on July 31, 2018. At
  December 31, 2015, our outstanding borrowings were $248 million.
• Management and the board of directors of our general partner have
  approved additional investments and expansion projects at our
  terminals that currently are, or will be, under construction with
  estimated completion dates that extend through the second quarter of
  2017. At December 31, 2015, the remaining expenditures to complete the
  approved projects are estimated to be approximately $90 million, which
  primarily includes the construction costs associated with the tank
  expansion at our Collins/Purvis terminal and the recent purchase of
  the Port Everglades hydrant system, as further discussed above. We
  expect to fund our investment and expansion expenditures with
  additional borrowings under our credit facility.
• Our primary liquidity needs are to fund our working capital
  requirements, distributions to unitholders, approved investments,
  approved capital projects and approved future expansion, development
  and acquisition opportunities. We expect to initially fund our
  approved investments, approved capital projects and our approved
  future expansion, development and acquisition opportunities with
  additional borrowings under our credit facility. After initially
  funding these expenditures with borrowings under our credit facility,
  we may raise funds through additional equity offerings and debt
  financings. The proceeds of such equity offerings and debt financings
  may then be used to reduce our outstanding borrowings under our credit
  facility.

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.

FILING OF ANNUAL REPORT ON FORM 10-K

TransMontaigne Partners L.P.’s Annual Report on Form 10-K was filed with
the Securities and Exchange Commission on March 10, 2016 and was
simultaneously posted to our website: www.transmontaignepartners.com. Unitholders
may obtain a hard copy of the Annual Report on Form 10-K containing
TransMontaigne Partners L.P.’s complete audited financial statements for
the year ended December 31, 2015 free of charge by contacting
TransMontaigne Partners L.P., Attention: Investor Relations, 1670
Broadway, Suite 3100, Denver, Colorado 80202 or phoning (303) 626-8200.

CONFERENCE CALL

TransMontaigne Partners L.P. previously announced that it has scheduled
a conference call for Thursday, March 10, 2016 at 11:00 a.m. (ET)
regarding the above information. Analysts, investors and other
interested parties are invited to listen to management’s presentation of
the Company’s results and supplemental financial information by
accessing the call as follows:

(800) 230-1074
Ask for:
TransMontaigne
Partners

A playback of the conference call will be available from 1:00 p.m. (ET)
on Thursday, March 10, 2016 until 11:59 p.m. (ET) on Thursday, March 17,
2016 by calling:

USA: (800) 475-6701
International: (320)
365-3844
Access Code: 387173

ATTACHMENT A
SELECTED FINANCIAL INFORMATION AND RESULTS
OF OPERATIONS

The following selected financial information is extracted from our
Annual Report on Form 10-K for the three months and year ended
December 31, 2015, which was filed on March 10, 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, 2015 and 2014 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 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations” in our Annual Report on Form 10-K
for the year ended December 31, 2015, which was filed with the
Securities and Exchange Commission on March 10, 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.

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. 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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