TransMontaigne Announces Fourth Quarter and Full Year 2017 Results and the Filing of its 2017 Annual Report on Form 10-K

• Acquired two terminal facilities on the U.S. West Coast with
  approximately 5 million barrels of active storage capacity, for
  approximately $277 million
• Announced that we will construct 870,000 barrels of a Collins Phase II
  buildout, supported by the execution of a significant long-term,
  fee-based anchor agreement with a third party for new storage capacity
• Achieved record levels of revenue, EBITDA and distributable cash flow
  for the full year 2017
• Net earnings for the fourth quarter of 2017 totaled $10.1 million,
  compared to $13.2 million in the prior year fourth quarter
• Consolidated EBITDA for the fourth quarter of 2017 totaled $27.0
  million, compared to $25.5 million in the prior year fourth quarter
• Distributable cash flow for the fourth quarter of 2017 totaled $19.1
  million, compared to $19.3 million in the prior year fourth quarter
• Distribution coverage for full year 2017 was 1.45x; leverage as of
  December 31, 2017 was 4.38x on an as adjusted basis for the
  acquisition of the West Coast terminal facilities
• Increased the quarterly cash distribution for the ninth consecutive
  quarter to $0.77, reflecting an 8.5% increase over prior year
  quarterly distribution

DENVER–(BUSINESS WIRE)–TransMontaigne Partners L.P. (NYSE:TLP) (the Partnership, we, us, our)
today announced fourth quarter and full year 2017 financial and
operating results.

“Our business continues to perform extremely well, resulting in record
levels of revenue, EBITDA and distributable cash flow for 2017,” said
Fred Boutin, Chief Executive Officer of TransMontaigne Partners. “Our
growth in 2017 was largely driven by the completion of our
fully-contracted $75 million Collins phase I expansion, which added 2
million barrels of storage capacity at attractive investment returns.
Our performance and stable cash flows have allowed us to provide strong
and consistent growth in our quarterly distribution, while maintaining a
conservative distribution coverage ratio of more than 1.4x for 2017. We
are excited to have completed the acquisition of the West Coast
terminals in December; strategically expanding our terminal footprint
into the San Francisco Bay Area refining complex and growing our base of
long-term fee-based cash flows. Additionally, we are excited to announce
a Phase II buildout of our Collins, Mississippi terminal, supported by
an anchor agreement for new capacity with a third party customer. We
remain committed to growth in our business over the long-term, and we
continue to execute on our expansion plans, including growth through
asset maximization, organic expansion projects and potential
acquisitions.”

FINANCIAL RESULTS

Revenue for the fourth quarter of 2017 totaled $47.6 million, an
increase of $5.1 million, or approximately 12%, compared to the $42.5
million reported for the fourth quarter of 2016. Consolidated EBITDA
totaled $27.0 million for the fourth quarter of 2017, representing an
increase of $1.5 million, or approximately 5.9%, compared to the $25.5
million reported for the fourth quarter of 2016. The improvement
compared to the prior year was primarily attributed to our Collins Phase
I terminal expansion coming fully on-line in 2017.

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 volume of throughput of
the 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.” With
respect to the fourth quarter 2017, approximately 75% of our total
revenue was derived from terminaling services agreements that contain
firm commitments. As of December 31, 2017, approximately 66% of our
terminaling services revenues for the fourth quarter of 2017 were
generated from firm commitments with remaining terms of three years or
more.

An overview of our financial performance for the quarter ended December
31, 2017 compared to the quarter ended December 31, 2016, includes:

• Operating income for the quarter ended December 31, 2017 was
  approximately $13.6 million compared to $14.6 million for the quarter
  ended December 31, 2016. Changes in the primary components of
  operating income are as follows:
  • Revenue increased approximately $5.1 million to $47.6 million due
    to increases in revenue at our Gulf Coast, Midwest, and Southeast
    terminals of approximately $0.6 million, $0.2 million and $3.8
    million, respectively, partially offset by decreases in revenue at
    our Brownsville and River terminals of approximately $1.1 million
    and $0.1 million, respectively. The December 15, 2017 acquisition
    of the West Coast terminals added approximately $1.7 million to
    revenue.
  • Direct operating costs and expenses decreased approximately $0.3
    million to $17.5 million due to decreases in Gulf Coast, Midwest,
    Brownsville, River and the Southeast terminals of approximately
    $0.2 million, $0.1 million, $0.3 million, $0.2 million and $0.1
    million, respectively. The acquisition of the West Coast terminals
    added approximately $0.6 million to expense.
  • General and administrative expenses increased approximately $3.0
    million to $6.1 million primarily due to costs associated with our
    pursuit of acquisition opportunities, such as the West Coast
    terminals.
  • Insurance expenses decreased approximately $0.2 million to $1.1
    million.
  • Equity-based compensation expense decreased approximately $0.3
    million to $0.3 million.
  • Depreciation and amortization expenses increased approximately
    $1.4 million to $9.6 million.
  • Earnings from unconsolidated affiliates decreased approximately
    $2.6 million to $0.5 million due to lower earnings associated with
    our investment in BOSTCO.
• Net earnings were $10.1 million for the quarter ended December 31,
  2017 compared to $13.2 million for the quarter ended December 31,
  2016. The decrease was principally due to the changes in quarterly
  operating income discussed above and an increase in interest expense
  of approximately $2.0 million. The increase in interest expense is
  partially attributable to the recognition of unrealized gains in
  determining the fair value of our interest rate swap agreements. In
  the fourth quarter 2017 we recognized unrealized gains of $0.1 million
  compared to unrealized gains of $0.9 million in the fourth quarter
  2016.
• Quarterly net earnings per limited partner unit was $0.41 per unit for
  the quarter ended December 31, 2017 compared to $0.65 per unit for the
  quarter ended December 31, 2016.
• Consolidated EBITDA for the quarter ended December 31, 2017 was $27.0
  million compared to $25.5 million for the quarter ended December 31,
  2016.
• Distributable cash flow for the quarter ended December 31, 2017 was
  $19.1 million compared to $19.3 million for the quarter ended December
  31, 2016.
  • The distribution declared per limited partner unit was $0.77 per
    unit for the quarter ended December 31, 2017 compared to $0.71 per
    unit for the quarter ended December 31, 2016.
  • We paid aggregate distributions of $16.1 million for the quarter
    ended December 31, 2017, resulting in a quarterly distribution
    coverage ratio of 1.19x.

An overview of our financial performance for the year ended December 31,
2017 compared to the year ended December 31, 2016, includes:

• Operating income for the year ended December 31, 2017 was
  approximately $60.2 million compared to $52.7 million for the year
  ended December 31, 2016. Changes in the primary components of
  operating income are as follows:
  • Revenue increased approximately $18.4 million to $183.3 million
    due to increases in revenue at the Gulf Coast and Southeast
    terminals of approximately $6.2 million and $17.1 million,
    respectively, partially offset by decreases in revenue at the
    Midwest, Brownsville and River terminals of approximately $0.2
    million, $4.8 million and $1.6 million, respectively. The December
    15, 2017 acquisition of the West Coast terminals added
    approximately $1.7 million to revenue.
  • Direct operating costs and expenses decreased approximately $0.7
    million to $67.7 million due to decreases in the Gulf Coast,
    Midwest, Brownsville and River terminals of approximately $0.1
    million, $0.4 million, $0.9 million and $1.3 million,
    respectively, partially offset by an increase at the Southeast
    terminals of approximately $1.4 million. The acquisition of the
    West Coast terminals added approximately $0.6 million to expense.
  • General and administrative expenses increased approximately $5.3
    million to $19.4 million primarily due to costs associated with
    our pursuit of acquisition opportunities, such as the West Coast
    terminals.
  • Equity-based compensation expense decreased approximately $0.3
    million to $3.0 million.
  • Depreciation and amortization expense increased approximately $3.6
    million to $36.0 million.
  • Earnings from investments in unconsolidated affiliates decreased
    approximately $2.9 million to $7.1 million due to lower earnings
    associated with our investment in BOSTCO.
• Net earnings were $48.5 million for the year ended December 31, 2017
  compared to $44.1 million for the year ended December 31, 2016. The
  increase was principally due to the changes in annual operating income
  discussed above and an increase in interest expense of approximately
  $2.7 million.
• Annual net earnings per limited partner unit was $2.20 per unit for
  the year ended December 31, 2017 compared to $2.14 per unit for the
  year ended December 31, 2016.
• Consolidated EBITDA for the year ended December 31, 2017 was $108.5
  million compared to $96.2 million for the year ended December 31, 2016.
• Distributable cash flow for the year ended December 31, 2017 was $88.7
  million compared to $75.9 million for the year ended December 31, 2016.
  • The distribution declared per limited partner unit was $2.99 per
    unit for the year ended December 31, 2017 compared to $2.78 per
    unit for the year ended December 31, 2016.
  • We paid aggregate distributions of $61.3 million for the year
    ended December 31, 2017, resulting in an annual distribution
    coverage ratio of 1.45x.

RECENT DEVELOPMENTS

West Coast terminals acquisition. On December 15, 2017, we
acquired the West Coast terminals from a third party for a total
purchase price of approximately $276.8 million. The purchase price
reflects a less than ten times multiple of the Partnership’s estimate of
the 2018 EBITDA attributable to the West Coast terminals based on
current customer contracts and historical and anticipated activity
levels, revenues and operating costs. The acquisition was financed with
borrowings under our credit facility. The West Coast terminals are two
waterborne refined product and crude oil terminals located in the San
Francisco Bay Area refining complex with a total of 64 storage tanks
with approximately 5 million barrels of active storage capacity. The
West Coast terminals have access to domestic and international crude oil
and refined products markets through marine, pipeline, truck and rail
logistics capabilities. Pursuant to a new long-term terminaling services
agreement with a third party customer, we have begun the construction of
an additional 125,000 barrels of storage capacity at one of the
terminals.

Expansion of our Collins bulk storage terminal. Our
Collins/Purvis, Mississippi terminal complex 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. We
previously entered into long-term terminaling services agreements with
various customers for approximately 2 million barrels of new tank
capacity at our Collins, terminal. The revenue associated with these
agreements came on-line upon completion of the construction of the new
tank capacity at various stages beginning in the fourth quarter of 2016
through the second quarter of 2017. The aggregate cost of the
approximately 2 million barrels of new tank capacity was approximately
$75 million, with expected annual cash returns in the high-teens. With
the completion of our Phase I expansion, our Collins/Purvis terminal
complex has current active storage capacity of approximately 5.4 million
barrels.

In addition to the Phase I expansion at our Collins terminal, in the
second half of 2017 we obtained an air permit for an additional 5
million barrels of capacity for a Phase II buildout. We have started the
design and buildout of 870,000 barrels of new storage capacity supported
by the execution of a new long-term, fee-based terminaling services
agreement with a third party customer, which constitutes the beginning
of a Phase II buildout. To facilitate our further expansion of tankage
at Collins, we also recently entered into an agreement with Colonial
Pipeline Company for significant improvements to the Colonial Pipeline
receipt and delivery manifolds and our related receipt and delivery
facilities. The improvements will result in significant increased
flexibility for our Collins customers including the simultaneous receipt
and delivery of gasoline from and to Colonial’s Line 1 at full line
rates including the ability to receive and deliver segregated batches at
these rates; a dedicated and segregated line for the receipt and
delivery of distillates from and to Colonial’s Line 2; and a dedicated
and segregated line for the receipt and delivery of jet fuel from and to
Colonial’s Line 2. The anticipated cost of the approximately 870,000
barrels of new storage capacity and our share of the improvements to the
pipeline connections is approximately $55 million, with expected annual
cash returns in the low-teens. We are currently in active discussions
with several other existing and prospective customers regarding
additional future capacity at our Collins terminal.

Credit facility amendment. In connection with our
West Coast terminals acquisition, we entered into an amendment to our
revolving credit facility on December 14, 2017, which increased the
lender commitments under our revolving credit facility from $600 million
to $850 million.

Public offering of senior notes. On February 12,
2018, the Partnership and TLP Finance Corp., our wholly owned
subsidiary, completed the sale of $300 million of 6.125% senior notes,
issued at par and due 2026 (the “Senior Notes”). The Senior Notes were
guaranteed on a senior unsecured basis by each of our wholly owned
subsidiaries that guarantee obligations under our revolving credit
facility. Net proceeds were used primarily to repay indebtedness under
our revolving credit facility.

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2017, outstanding borrowings on our $850 million
revolving credit facility were $593.2 million. For the trailing twelve
months, on an as adjusted basis for our acquisition of the West Coast
terminals, our Consolidated EBITDA was $135.4 million, resulting in a
debt to Consolidated EBITDA ratio of 4.38x. Consolidated EBITDA is a
non-GAAP financial performance measure used in the calculation of the
leverage ratio requirement under our revolving credit facility. See
Attachment B hereto for a reconciliation of Consolidated EBITDA to net
earnings. See also Attachment C hereto for a table showing the
calculation of our total leverage ratio and interest coverage ratio and
a reconciliation of Consolidated EBITDA to Cash flows provided by
operating activities.

For the fourth quarter of 2017, we reported $20.3 million in total
capital expenditures. As of December 31, 2017, remaining expenditures
for approved expansion projects are estimated to be approximately $70
million. Approved expenditures primarily include the construction costs
associated with the expansion at our Collins and West Coast terminals,
as further discussed above.

QUARTERLY DISTRIBUTION

The Partnership previously announced that it declared a distribution of
$0.77 per unit for the period from October 1, 2017 through December 31,
2017. This $0.015 increase over the previous quarter reflects the ninth
consecutive increase in the quarterly distribution and represents annual
growth of 8.5% over the prior year fourth quarter distribution. This
distribution was paid on February 8, 2018 to unitholders of record on
January 31, 2018.

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 15, 2018 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 the Partnership’s complete audited financial statements for
the year ended December 31, 2017 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

On Thursday, March 15, 2018, the Partnership will hold a conference call
for analysts and investors at 12:00 p.m. (noon) Eastern Time to discuss
our fourth quarter and full year 2017 results. Hosting the call will be
Fred Boutin, Chief Executive Officer, and Rob Fuller, Chief Financial
Officer. The call can be accessed live over the telephone by dialing
(877) 407-4018, or for international callers (201) 689-8471. A replay
will be available shortly after the call and can be accessed by dialing
(844) 512-2921, or for international callers (412) 317-6671. The
passcode for the replay is 13677624. The replay will be available until
March 29, 2018.

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 Investor Information section. A
replay of the webcast will also be available until March 29, 2018.

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, in the Southeast and on the West Coast. 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, and 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. Among the key risk factors that
could negatively impact our assumptions on future growth prospects and
acquisitions include, without limitation, (i) our ability to identify
suitable growth projects or acquisitions; (ii) our ability to complete
identified projects timely and at expected costs, (iii) competition for
acquisition opportunities, and (iv) the successful integration and
performance of acquired assets or businesses and the risks of operating
assets or businesses that are distinct from our historical operations.
Key risk factors associated with the West Coast terminals include,
without limitation: (i) the successful integration and performance of
the acquired assets, (ii) adverse changes in general economic or market
conditions, and (iii) competitive factors such as pricing pressures and
the entry of new competitors. Key risk factors associated with the
Collins terminal expansion and related improvements 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 Partnership’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. Additional important factors that could cause actual
results to differ materially from the Partnership’s expectations and may
adversely affect its business and results of operations are disclosed in
"Item 1A. Risk Factors" in the Partnership’s Annual Report on Form 10-K
for the year ended December 31, 2017, filed with the Securities and
Exchange Commission on March 15, 2018. The forward looking statements
speak only as of the date made, and, other than as may be required by
law, the Partnership undertakes no obligation to update or revise any
forward looking statements, whether as a result of new information,
future events or otherwise.

ATTACHMENT A
SELECTED FINANCIAL INFORMATION AND RESULTS
OF OPERATIONS

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 volume of throughput of
the 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.” Revenue
recognized in excess of firm commitments and revenue recognized based
solely on the volume of product distributed or injected are referred to
as “ancillary.” The majority of our “ancillary” revenue is derived from
fees we charge our customers to inject additive compounds into product
that the customer is storing at our terminals. The “firm commitments”
and “ancillary” revenue included in terminaling services fees were as
follows (in thousands):

Contacts

TransMontaigne Partners L.P.
Frederick W. Boutin,
303-626-8200
Chief Executive Officer
or
Robert T. Fuller,
303-626-8200
Chief Financial Officer

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