INDIANAPOLIS, Aug. 14, 2017 /PRNewswire/ -- Calumet Specialty
Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership,"
"Calumet," "we," "our" or "us"), a leading independent producer of
specialty hydrocarbon and fuels products, today announced that it
has signed definitive agreements to sell the ownership of its
Superior, Wisconsin refinery and
various related assets to Husky Superior Refining Holding
Corporation, a wholly owned unit of Husky Energy ("Husky").
Under the agreement, Husky has agreed to pay $435 million in cash plus an additional payment
for net working capital, inventories, and reimbursement of certain
capital spending. Had the transaction closed on June 30, the additional payment would have been
$61.5 million. The transaction
is subject to customary closing conditions and regulatory
approvals.
Tim Go, Chief Executive Officer of Calumet commented, "The
divestiture of our Superior
refinery is in line with Calumet's strategic vision to become the
premier specialty petroleum products company in the world.
This transaction provides both financial and strategic benefits
for our unitholders, as we further position Calumet to move
forward on our stated objectives including strengthening our
balance sheet, lowering our leverage, and freeing up capital
resources that will allow us to better invest and fund future
EBITDA enhancing growth strategies within our core Specialties
portfolio. The transaction also reduces our go-forward
exposure to commodity pricing and volatility."
Go concluded, "Equally important, we are excited to find with
Husky a great home for our employees at Superior and want to thank them for their
contributions to our organization over the last few years.
Their dedication and efforts have made Superior an attractive value proposition for
Husky, who will retain the Superior employees and will assume the union
contract and pension plan. Additionally, Husky has
committed to invest in key capital projects at Superior, including the Superior Flexibility
Project which will allow the plant to improve its operational
efficiency."
Tudor, Pickering, Holt & Co. is serving as the exclusive
financial advisor on this transaction to Calumet.
Kirkland and Ellis LLP acted as
legal advisor.
About Superior
The Superior refinery has
permitted capacity of 50,000 barrels per day and processes light
and heavy crude oil from the Bakken shale formation in North Dakota and western Canada into fuel products and asphalt. The
business also includes refinery terminal and truck/rail racks, two
offsite asphalt terminals and truck racks, an offsite product
terminal and truck rack, a marine terminal, a pipeline connection
to the Magellan system, crude gathering assets in North Dakota, and certain rail logistics
assets. The Superior
refinery has been a part of the community in Superior, Wisconsin since 1951 and enjoys
excellent relations with local businesses and governments.
About the Partnership
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a
master limited partnership and a leading independent producer of
high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and
other feedstocks into customized lubricating oils, solvents and
waxes used in consumer, industrial and automotive products;
produces fuel products including gasoline, diesel and jet fuel; and
provides oilfield services and products to customers throughout
the United States. Calumet is
based in Indianapolis, Indiana,
and operates thirteen manufacturing facilities located in northwest
Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New
Jersey, Oklahoma and
eastern Missouri.
About Husky
Husky is an integrated energy company headquartered in
Calgary, Alberta. It has
approximately 5,200 employees and has average daily production of
about 320,000 barrels of oil equivalent per day.
The Company has two main areas of focus:
- The Integrated Corridor includes natural gas, non-thermal oil,
NGLs and thermal production from Western
Canada, the Lloydminster
upgrading and asphalt refining complex, the Husky Midstream Limited
Partnership (35 percent working interest and operatorship), and the
Lima and Toledo refineries in the U.S. Midwest. Gas
production from the repositioned Western
Canada portfolio is closely aligned with the Company's
energy requirements for refining and thermal bitumen production,
and acts as a natural hedge.
- The Offshore business includes operations and exploration in
the Asia Pacific region, primarily
offshore China, Indonesia and Taiwan, and in the Atlantic, offshore
Newfoundland and Labrador. Each area generates high-netback
production, with near and long-term investment potential.
Cautionary Statement Regarding Forward-Looking
Statements
Except for the historical information contained herein, the
matters discussed in this release consist of forward-looking
statements that involve certain risks and uncertainties that could
cause actual results or outcomes to differ materially from results
or outcomes anticipated in the forward-looking statements. The
statements include, but are not limited to, the statements
regarding the time required to consummate the transaction, the
satisfaction or waiver of conditions in the agreement governing the
proposed transaction; the ability to obtain regulatory [or other
third-party] approvals and consents and otherwise consummate the
proposed transaction; our ability to achieve the strategic and
other objectives relating to the proposed transaction; and our
expectation with respect to future exposure to commodity prices.
These forward-looking statements are based on our current
expectations and beliefs concerning future developments and their
potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. Our forward-looking statements involve
significant risks and uncertainties (some of which are beyond our
control) and assumptions that could cause our actual results to
differ from our historical experience and our present expectations
or projections. Known material factors that could cause actual
results to differ materially from those in the forward-looking
statements include: the overall demand for specialty hydrocarbon
products; the level of foreign and domestic production of crude oil
and refined products; our ability to produce specialty products,
fuels products and products used in oilfield services that meet our
customers' unique and precise specifications; the impact of
fluctuations and rapid increases or decreases in crude oil and
crack spread prices, including the resulting impact on our
liquidity; the results of our hedging and other risk management
activities; our ability to comply with financial covenants
contained in our debt instruments; labor relations; our access to
capital to fund expansions, acquisitions and our working capital
needs and our ability to obtain debt or equity financing on
satisfactory terms; environmental liabilities or events that are
not covered by an indemnity, insurance or existing reserves;
maintenance of our credit ratings and ability to receive open
credit lines from our suppliers; demand for various grades of crude
oil and resulting changes in pricing conditions; fluctuations in
refinery capacity; our ability to access sufficient crude oil
supply through long-term or month-to-month evergreen contracts and
on the spot market; the effects of competition; continued
creditworthiness of, and performance by, counterparties; the impact
of current and future laws, rulings and governmental regulations,
including guidance related to the Dodd-Frank Wall Street Reform and
Consumer Protection Act; the costs of complying with the RFS,
including the prices paid for RINs; shortages or cost increases of
power supplies, natural gas, materials or labor; hurricane or other
weather interference with business operations; accidents or other
unscheduled shutdowns; and general economic, market or business
conditions.
For additional information regarding known material factors that
could cause our actual results to differ from our projected
results, please see our filings with the Securities and Exchange
Commission ("SEC"), including our latest Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and Current Reports on Form
8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to publicly update or revise
any forward-looking statements after the date they are made,
whether as a result of new information, future events or
otherwise.
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SOURCE Calumet Specialty Products Partners, L.P.