May 24 (Reuters) - Martin Midstream Partners ( MMLP )

said on Friday it received a buyout cash offer of $3.05 per

common unit from Martin Resource Management for all the units it

does not already own.

Martin Resource Management, a supplier of products and

services to drilling rig contractors, currently owns 15.9% of

the company. The cash offer values the deal at $100.27 million

according to Reuters calculation.

Several large oil and natural gas pipeline firms have

restructured in recent years after U.S. regulators no longer

allowed such companies to recover an income tax allowance as

part of the 1986 Master Limited Partnerships (MLP) legislation.

Under MLPs, as a way to spur energy investment, the oil and

gas industry could finance pipeline and storage products

allowing them to reap tax benefits.

Martin Midstream ( MMLP ) was formed in 2002 by Martin Resource

Management, which is an independent provider of marketing and

distribution of fuel oil, asphalt, diesel fuel and high-quality

naphthenic lubricants.

(Reporting by Arunima Kumar in Bengaluru)