- Net income attributable to partners of $103.0 million, or Limited partners' interest of
$1.26 basic net income per unit, for
the third quarter of 2023
- Third quarter Adjusted EBITDA of $75.5
million driven by supportive market and strong commercial
execution, partially offset by transient operational issues in
Shreveport and Montana
- MRL hydrogen steam drum replacement installed; turnaround
brought forward opportunistically; on track for full production in
December
INDIANAPOLIS, Nov. 9, 2023
/PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ:
CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), today
reported results for the third quarter ended
September 30, 2023, as follows:
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2023
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2022
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2023
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2022
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(Dollars in millions, except per unit data)
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Net income (loss)
attributable to partners
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$
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103.0
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$
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15.7
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$
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113.2
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$
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(95.1)
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Limited partners'
interest basic net income (loss) per unit
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$
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1.26
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$
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0.19
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$
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1.38
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$
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(1.18)
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Adjusted
EBITDA
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$
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75.5
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$
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127.0
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$
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220.9
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$
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326.1
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Specialty Products and Solutions
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Performance Brands
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Montana/Renewables
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Three Months Ended September
30,
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Three Months Ended September
30,
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Three Months Ended September
30,
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2023
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2022
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2023
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2022
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2023
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2022
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(Dollars in millions, except per barrel data)
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Gross profit
(loss)
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$
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158.9
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$
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123.4
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$
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21.0
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$
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17.0
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$
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81.7
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$
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(1.1)
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Adjusted gross
profit
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$
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56.7
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$
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149.4
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$
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18.6
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$
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17.4
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$
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48.3
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$
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11.7
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Adjusted
EBITDA
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$
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38.7
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$
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131.7
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$
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13.2
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$
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8.5
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$
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38.2
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$
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11.3
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Gross profit (loss) per
barrel
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$
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28.77
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$
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21.65
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$
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160.31
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$
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139.34
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$
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41.66
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$
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(0.96)
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Adjusted gross profit
per barrel
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$
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10.26
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$
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26.22
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$
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141.98
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$
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142.62
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$
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24.63
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$
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10.17
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Specialty Products and Solutions
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Performance Brands
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Montana/Renewables
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Nine Months Ended
September 30,
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Nine Months Ended
September 30,
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Nine Months Ended
September 30,
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2023
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2022
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2023
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2022
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2023
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2022
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(Dollars in millions, except per barrel data)
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Gross profit
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$
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314.5
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$
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229.2
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$
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66.0
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$
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44.5
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$
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49.2
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$
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42.2
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Adjusted gross
profit
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$
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221.8
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$
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328.8
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$
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62.0
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$
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45.9
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$
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78.8
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$
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97.6
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Adjusted
EBITDA
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$
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176.1
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$
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283.3
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$
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41.8
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$
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17.5
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$
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55.6
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$
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88.9
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Gross profit per
barrel
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$
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19.66
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$
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13.63
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$
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167.09
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$
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112.09
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$
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9.19
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$
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6.78
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Adjusted gross profit
per barrel
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$
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13.86
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$
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19.55
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$
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156.96
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$
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115.62
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$
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14.72
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$
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15.69
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"The third quarter at Calumet was a tale of two halves," said
Todd Borgmann, CEO. "The quarter
started with a strong proof point of Montana Renewables' earnings
power as we generated $14.2 million
of Adjusted EBITDA in July while processing 70% of geographically
advantaged untreated feedstock. Meanwhile, our specialties
business continued to benefit from a supportive demand environment
and effective commercial execution despite crude costs increasing
roughly $20 per barrel during the
quarter.
"Unfortunately, we experienced transient operational issues at
our Shreveport and Montana Renewables facilities. As we
previously announced, we discovered a crack in the steam drum
within our newly constructed renewable hydrogen plant that required
replacement. The replacement drum has been installed, and the
hydrogen plant is on track to restart early next week.
Further, we used the downtime to opportunistically pull forward a
catalyst turnaround that was previously scheduled for early 2024.
Our next generation catalyst has performed well, and the decision
to pull forward this turnaround was purely an economic
optimization. This decision allows us to do the work while
the plant is already down for repair as opposed to having to shut
down next Spring when we'd otherwise be operating at full
rates. Further, with this move we have no forecasted planned
downtime during the strategically important first half of next
year. The turnaround is progressing according to plan, and we are
on track to be back online for a full month of production in
December.
"At Shreveport, plugging of our catalytic dewaxing unit resulted
in the loss of approximately 300,000 barrels of specialty
production during the quarter. The unit was fully repaired,
and our Shreveport plant is back to normal production
levels.
"While these one-time events cost us over $50 million of lost profit opportunity during the
quarter, we believe they are transitory in nature with the repairs
either complete or nearly complete. Further, our ultimate strategic
objectives are unchanged. The downtime in Great Falls likely pushes back our strategic
timeline slightly, but with our DOE loan process, MaxSAF expansion
engineering, and potential monetization all progressing, we remain
confident that Calumet is poised to deliver against our plan to
unlock the company's intrinsic value for our unitholders in
2024."
Specialty Products and Solutions (SPS): The SPS segment
reported Adjusted EBITDA of $38.7
million, compared to Adjusted EBITDA of $131.7 million for the same quarter a year ago.
Margins have softened from last year's record highs and remain
above mid-cycle levels. Further, production volume was
limited largely due to an operational issue with a specialty
production unit in Shreveport which has since been repaired.
Performance Brands (PB): The PB segment reported
Adjusted EBITDA of $13.2 million,
compared to Adjusted EBITDA of $8.5
million for the 2022 third quarter. Year over year margin
growth has largely been driven by improved industrial volumes and
increased unit margins across the board as input costs have
stabilized.
Montana/Renewables (MR):
The MR segment reported $38.2 million
of Adjusted EBITDA, compared to Adjusted EBITDA of $11.3 million in the same quarter a year ago.
During the third quarter, results were impacted by a steam drum
replacement, and the plant is expected to generate a full month of
operations in December. Our new PMA asphalt plant continues
to operate above expectations.
Corporate: Total corporate costs are represented as a
loss of $14.6 million of Adjusted
EBITDA, compared to a loss of $24.5
million of Adjusted EBITDA for the same quarter of 2022.
Operations Summary
The following table sets forth information about the
Partnership's continuing operations. Facility production volume
differs from sales volume due to changes in inventories and the
sale of purchased blendstocks such as ethanol and specialty
blendstocks, as well as the resale of crude oil.
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2023
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2022
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2023
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2022
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(In bpd)
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(In bpd)
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Total sales volume
(1)
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82,787
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75,789
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79,660
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85,859
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Total feedstock runs
(2)
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82,409
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75,722
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76,157
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84,133
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Facility production:
(3)
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Specialty Products and
Solutions:
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Lubricating
oils
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9,258
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11,681
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10,013
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11,039
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Solvents
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7,165
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7,134
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7,176
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6,963
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Waxes
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1,417
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1,611
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1,369
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1,445
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Fuels, asphalt and
other by-products
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42,240
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43,716
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37,630
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41,043
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Total Specialty
Products and Solutions
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60,080
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64,142
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56,188
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60,490
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Montana/Renewables:
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Gasoline
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3,615
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1,675
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3,892
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3,672
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Diesel
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3,140
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3,396
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2,967
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7,997
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Jet fuel
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526
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714
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476
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880
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Asphalt, heavy fuel
oils and other
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4,461
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3,630
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4,474
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8,165
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Renewable
fuels
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7,455
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—
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6,607
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—
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Total
Montana/Renewables
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19,197
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9,415
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18,416
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20,714
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Performance
Brands
|
|
3,066
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|
1,299
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2,588
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1,510
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Total facility
production (3)
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82,343
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74,856
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77,192
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82,714
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(1)
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Total sales volume
includes sales from the production at our facilities and certain
third-party facilities pursuant to supply and/or processing
agreements, sales of inventories and the resale of crude oil to
third-party customers. Total sales volume includes the sale of
purchased blendstocks.
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(2)
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Total feedstock runs
represent the barrels per day of crude oil and other feedstocks
processed at our facilities and at certain third-party facilities
pursuant to supply and/or processing agreements.
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(3)
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The difference between
total facility production and total feedstock runs is primarily a
result of the time lag between the input of feedstocks and
production of finished products and volume loss.
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Webcast Information
A conference call is scheduled for 9:00
a.m. ET on November 9, 2023 to discuss the financial
and operational results for the third quarter of 2023. Investors,
analysts and members of the media interested in listening to the
live presentation are encouraged to join a webcast of the call with
accompanying presentation slides, available on the Partnership's
website at www.calumetspecialty.investorroom.com/events. Interested
parties may also participate in the call by dialing (844) 695-5524.
A replay of the conference call will be available a few hours after
the event on the investor relations section of the Partnership's
website, under the events and presentations section and will remain
available for at least 90 days.
About the Partnership
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT)
manufactures, formulates, and markets a diversified slate of
specialty branded products and renewable fuels to customers across
a broad range of consumer-facing and industrial markets. Calumet is
headquartered in Indianapolis,
Indiana and operates twelve facilities throughout
North America.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release may
constitute "forward-looking statements." The words "will," "may,"
"intend," "believe," "expect," "outlook," "forecast," "anticipate,"
"estimate," "continue," "plan," "should," "could," "would," or
other similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature. The
statements discussed in this press release that are not purely
historical data are forward-looking statements, including, but not
limited to, the statements regarding (i) the effect, impact,
potential duration or other implications of supply chain
disruptions, global energy shortages and the ongoing novel
coronavirus ("COVID-19") pandemic on our business and operations,
(ii) demand for finished products in markets we serve, (iii) our
expectation regarding our business outlook and cash flows,
including with respect to the Montana Renewables business and our
plans to de-leverage our balance sheet, (iv) our expectation
regarding anticipated capital expenditures and strategic
initiatives, and (v) our ability to meet our financial commitments,
debt service obligations, debt instrument covenants, contingencies
and anticipated capital expenditures. 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. All
comments concerning our current expectations for future sales and
operating results are based on our forecasts for our existing
operations and do not include the potential impact of any future
acquisition or disposition transactions. 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 materially 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 products, fuels, renewable fuels and other refined
products; the level of foreign and domestic production of crude oil
and refined products; our ability to produce specialty products,
fuel products, and renewable fuel products that meet our customers'
unique and precise specifications; the marketing of alternative and
competing products; 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; the
availability of, and our ability to consummate, acquisition or
combination opportunities and the impact of any completed
acquisitions; 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;
successful integration and future performance of acquired assets,
businesses or third-party product supply and processing
relationships; our ability to timely and effectively integrate the
operations of acquired businesses or assets, particularly those in
new geographic areas or in new lines of business; 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 Renewable Fuel
Standard, including the prices paid for renewable identification
numbers ("RINs"); shortages or cost increases of power supplies,
natural gas, materials or labor; hurricane or other weather
interference with business operations; our ability to access the
debt and equity markets; accidents or other unscheduled shutdowns;
and general economic, market, business or political conditions,
including inflationary pressures, instability in financial
institutions, the prospect of a shutdown of the U.S. federal
government, general economic slowdown or a recession, political
tensions, conflicts and war (such as the ongoing conflicts in
Ukraine and the Middle East and their regional and global
ramifications).
For additional information regarding 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 the risk factors and other cautionary statements in our
latest Annual Report on Form 10-K and other filings with the
SEC.
We caution that these statements are not guarantees of future
performance and you should not rely unduly on them, as they involve
risks, uncertainties, and assumptions that we cannot predict. In
addition, we have based many of these forward-looking statements on
assumptions about future events that may prove to be inaccurate.
While our management considers these assumptions to be reasonable,
they are inherently subject to significant business, economic,
competitive, regulatory and other risks, contingencies and
uncertainties, most of which are difficult to predict and many of
which are beyond our control. Accordingly, our actual results may
differ materially from the future performance that we have
expressed or forecast in our forward-looking statements. 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, except to
the extent required by applicable law. Certain public statements
made by us and our representatives on the date hereof may also
contain forward-looking statements, which are qualified in their
entirety by the cautionary statements contained above.
Non-GAAP Financial Measures
Our management uses certain non-GAAP performance measures to
analyze operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our financial information presented in accordance
with generally accepted accounting principles ("GAAP"). These
financial and operational non-GAAP measures are important factors
in assessing our operating results and profitability and include
performance measures along with certain key operating metrics.
We use the following financial performance measures:
EBITDA: We define EBITDA for any period as net income (loss)
attributable to partners plus interest expense (including
amortization of debt issuance costs), income taxes and depreciation
and amortization. Historically, we considered net income (loss) to
be the most directly comparable GAAP measure to EBITDA. Commencing
with the third quarter of 2022, we reported net loss attributable
to noncontrolling interest related to the preferred equity
investment from Warburg Pincus in the Montana Renewables business.
As a result of this change, we believe net income (loss)
attributable to partners is the most directly comparable GAAP
measure to EBITDA.
Adjusted EBITDA: We define Adjusted EBITDA for any period as:
EBITDA adjusted for (a) impairment; (b) unrealized gains and
losses from mark to market accounting for hedging activities;
(c) realized gains and losses under derivative instruments
excluded from the determination of net income (loss) attributable
to partners; (d) non-cash equity-based compensation expense
and other non-cash items (excluding items such as accruals of cash
expenses in a future period or amortization of a prepaid cash
expense) that were deducted in computing net income (loss)
attributable to partners; (e) debt refinancing fees,
extinguishment costs, premiums and penalties; (f) any net gain or
loss realized in connection with an asset sale that was deducted in
computing net income (loss) attributable to partners; (g)
amortization of turnaround costs; (h) LCM inventory adjustments;
(i) the impact of liquidation of inventory layers calculated using
the LIFO method; (j) RINs mark-to-market adjustments; and
(k) all extraordinary, unusual or non-recurring items of gain
or loss, or revenue or expense.
Distributable Cash Flow: We define Distributable Cash Flow for
any period as Adjusted EBITDA less replacement and environmental
capital expenditures, turnaround costs, cash interest expense
(consolidated interest expense less non-cash interest expense),
gain (loss) from unconsolidated affiliates, net of cash
distributions and income tax expense (benefit).
Specialty Products and Solutions segment Adjusted EBITDA Margin:
We define Specialty Products and Solutions segment Adjusted EBITDA
Margin for any period as Specialty Products and Solutions segment
Adjusted EBITDA divided by Specialty Products and Solutions segment
sales.
Specialty Products and Solutions segment Adjusted gross profit
(loss): We define Specialty Products and Solutions segment Adjusted
gross profit (loss) for any period as Specialty Products and
Solutions segment gross profit (loss) excluding the impact of (a)
LCM inventory adjustments; (b) the impact of liquidation of
inventory layers calculated using the LIFO method; (c) RINs
mark-to-market adjustments; (d) depreciation and amortization; and
(e) all extraordinary, unusual or non-recurring items of revenue or
cost of sales.
Performance Brands segment Adjusted gross profit (loss): We
define Performance Brands segment Adjusted gross profit (loss) for
any period as Performance Brands segment gross profit (loss)
excluding the impact of (a) LCM inventory adjustments; (b) the
impact of liquidation of inventory layers calculated using the LIFO
method; (c) RINs mark-to-market adjustments; (d) depreciation and
amortization; and (e) all extraordinary, unusual or non-recurring
items of revenue or cost of sales.
Montana/Renewables segment
Adjusted gross profit (loss): We define Montana/Renewables segment Adjusted gross
profit (loss) for any period as Montana/Renewables segment gross profit (loss)
excluding the impact of (a) LCM inventory adjustments; (b) the
impact of liquidation of inventory layers calculated using the LIFO
method; (c) RINs mark-to-market adjustments; (d) depreciation and
amortization; and (e) all extraordinary, unusual or non-recurring
items of revenue or cost of sales.
The definition of Adjusted EBITDA that is presented in this
press release is similar to the calculation of (i) "Consolidated
Cash Flow" contained in the indentures governing our 9.25% senior
secured first lien notes due July 15,
2024, that were issued in August
2020 (the "2024 Secured Notes"), our 11.00% senior notes due
April 15, 2025, that were issued in
October 2019 (the "2025 Notes"), our
8.125% senior notes due January 15,
2027, that were issued in January
2022 (the "2027 Notes"), and our 9.75% senior notes due
July 15, 2028, that were issued in
June 2023 (the "2028 Notes") and (ii)
"Consolidated EBITDA" contained in the credit agreement governing
our revolving credit facility. We are required to report
Consolidated Cash Flow to the holders of our 2024 Secured Notes,
2025 Notes, 2027 Notes, and 2028 Notes and Consolidated EBITDA to
the lenders under our revolving credit facility, and these measures
are used by them to determine our compliance with certain covenants
governing those debt instruments. Please see our filings with the
SEC, including our most recent Annual Report on Form 10-K and
Current Reports on Form 8-K, for additional details regarding the
covenants governing our debt instruments.
These non-GAAP measures are used as supplemental financial
measures by our management and by external users of our financial
statements such as investors, commercial banks, research analysts
and others, to assess:
- the financial performance of our assets without regard to
financing methods, capital structure or historical cost basis;
- the ability of our assets to generate cash sufficient to pay
interest costs and support our indebtedness;
- our operating performance and return on capital as compared to
those of other companies in our industry, without regard to
financing or capital structure;
- the viability of acquisitions and capital expenditure projects
and the overall rates of return on alternative investment
opportunities; and
- our operating performance excluding the non-cash impact of LCM
and LIFO inventory adjustments, RINs mark-to-market adjustments,
and depreciation and amortization.
We believe that these non-GAAP measures are useful to analysts
and investors, as they exclude transactions not related to our core
cash operating activities and provide metrics to analyze our
ability to fund our capital requirements and to pay interest on our
debt obligations. We believe that excluding these transactions
allows investors to meaningfully analyze trends and performance of
our core cash operations.
EBITDA, Adjusted EBITDA, Distributable Cash Flow, and segment
Adjusted gross profit (loss) should not be considered alternatives
to Net income (loss) attributable to partners, Operating income
(loss), Net cash provided by (used in) operating activities, gross
profit (loss) or any other measure of financial performance
presented in accordance with GAAP. In evaluating our performance as
measured by EBITDA, Adjusted EBITDA, Distributable Cash Flow, and
segment Adjusted gross profit (loss) management recognizes and
considers the limitations of these measurements. EBITDA and
Adjusted EBITDA do not reflect our liabilities for the payment of
income taxes, interest expense or other obligations such as capital
expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable
Cash Flow, and segment Adjusted gross profit (loss) are only a few
of several measurements that management utilizes. Moreover, our
EBITDA, Adjusted EBITDA, Distributable Cash Flow, and segment
Adjusted gross profit (loss) may not be comparable to similarly
titled measures of another company because all companies may not
calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, and
segment Adjusted gross profit (loss) in the same manner. Please see
the section of this release entitled "Non-GAAP Reconciliations" for
tables that present reconciliations of EBITDA, Adjusted EBITDA, and
Distributable Cash Flow to Net income (loss) attributable to
partners, our most directly comparable GAAP financial performance
measure; and segment Adjusted gross profit (loss) to segment gross
profit (loss), our most directly comparable GAAP financial
performance measure.
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In millions, except unit and
per unit data)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(In millions, except per unit and unit data)
|
Sales
|
|
$
|
1,149.4
|
|
$
|
1,165.0
|
|
$
|
3,204.1
|
|
$
|
3,686.9
|
Cost of
sales
|
|
|
887.8
|
|
|
1,025.7
|
|
|
2,774.4
|
|
|
3,371.0
|
Gross profit
|
|
|
261.6
|
|
|
139.3
|
|
|
429.7
|
|
|
315.9
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
12.4
|
|
|
11.6
|
|
|
41.4
|
|
|
40.4
|
General and
administrative
|
|
|
40.2
|
|
|
43.3
|
|
|
104.5
|
|
|
98.4
|
Other operating
(income) expense
|
|
|
(4.1)
|
|
|
2.5
|
|
|
4.1
|
|
|
16.8
|
Operating
income
|
|
|
213.1
|
|
|
81.9
|
|
|
279.7
|
|
|
160.3
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(58.7)
|
|
|
(41.8)
|
|
|
(163.7)
|
|
|
(136.0)
|
Debt extinguishment
costs
|
|
|
(0.3)
|
|
|
(40.4)
|
|
|
(5.5)
|
|
|
(41.4)
|
Gain (loss) on
derivative instruments
|
|
|
(54.3)
|
|
|
16.5
|
|
|
(14.5)
|
|
|
(73.2)
|
Other income
(expense)
|
|
|
0.6
|
|
|
(0.1)
|
|
|
0.1
|
|
|
(3.1)
|
Total other
expense
|
|
|
(112.7)
|
|
|
(65.8)
|
|
|
(183.6)
|
|
|
(253.7)
|
Net income (loss)
before income taxes
|
|
|
100.4
|
|
|
16.1
|
|
|
96.1
|
|
|
(93.4)
|
Income tax
expense
|
|
|
0.5
|
|
|
1.5
|
|
|
1.4
|
|
|
2.8
|
Net income
(loss)
|
|
$
|
99.9
|
|
$
|
14.6
|
|
$
|
94.7
|
|
$
|
(96.2)
|
Net loss attributable
to noncontrolling interest
|
|
|
(3.1)
|
|
|
(1.1)
|
|
|
(18.5)
|
|
|
(1.1)
|
Net income (loss)
attributable to partners
|
|
$
|
103.0
|
|
$
|
15.7
|
|
$
|
113.2
|
|
$
|
(95.1)
|
Allocation of net
income (loss) to partners
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to partners
|
|
$
|
103.0
|
|
$
|
15.7
|
|
$
|
113.2
|
|
$
|
(95.1)
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner's
interest in net income (loss)
|
|
|
2.1
|
|
|
0.3
|
|
|
2.3
|
|
|
(1.9)
|
Non-vested share based
payments
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
Net income (loss)
attributable to limited partners
|
|
$
|
100.8
|
|
$
|
15.2
|
|
$
|
110.8
|
|
$
|
(93.2)
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
80,172,810
|
|
|
79,384,878
|
|
|
80,046,930
|
|
|
79,277,719
|
Diluted
|
|
|
80,277,483
|
|
|
80,461,600
|
|
|
80,148,519
|
|
|
79,277,719
|
Limited partners'
interest basic net income (loss) per unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners'
interest
|
|
$
|
1.26
|
|
$
|
0.19
|
|
$
|
1.38
|
|
$
|
(1.18)
|
Limited partners'
interest diluted net income (loss) per unit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners'
interest
|
|
$
|
1.26
|
|
$
|
0.19
|
|
$
|
1.38
|
|
$
|
(1.18)
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE
SHEETS (In millions)
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
|
|
|
|
(In millions, except unit
data)
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
13.7
|
|
$
|
35.2
|
Accounts
receivable
|
|
|
|
|
|
|
Trade, less allowance
for credit losses of $1.3 million and $1.3 million,
respectively
|
|
|
285.0
|
|
|
245.7
|
Other
|
|
|
62.8
|
|
|
22.3
|
|
|
|
347.8
|
|
|
268.0
|
Inventories
|
|
|
447.7
|
|
|
498.0
|
Derivative
assets
|
|
|
5.2
|
|
|
—
|
Prepaid expenses and
other current assets
|
|
|
49.0
|
|
|
19.2
|
Total current
assets
|
|
|
863.4
|
|
|
820.4
|
Property, plant and
equipment, net
|
|
|
1,526.9
|
|
|
1,482.0
|
Other noncurrent
assets, net
|
|
|
414.5
|
|
|
439.4
|
Total assets
|
|
$
|
2,804.8
|
|
$
|
2,741.8
|
LIABILITIES AND PARTNERS' CAPITAL
(DEFICIT)
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
342.1
|
|
$
|
442.4
|
Accrued interest
payable
|
|
|
41.2
|
|
|
34.6
|
Accrued salaries, wages
and benefits
|
|
|
82.9
|
|
|
93.0
|
Obligations under
inventory financing agreements
|
|
|
237.9
|
|
|
221.8
|
Current portion of RINs
obligation
|
|
|
326.3
|
|
|
399.3
|
Derivative
liabilities
|
|
|
—
|
|
|
26.5
|
Other current
liabilities
|
|
|
85.2
|
|
|
114.5
|
Current portion of
long-term debt
|
|
|
204.6
|
|
|
20.0
|
Total current
liabilities
|
|
|
1,320.2
|
|
|
1,352.1
|
Other long-term
liabilities
|
|
|
57.5
|
|
|
60.2
|
Long-term RINs
obligation, less current portion
|
|
|
16.5
|
|
|
77.5
|
Long-term debt, less
current portion
|
|
|
1,608.2
|
|
|
1,539.7
|
Total
liabilities
|
|
$
|
3,002.4
|
|
$
|
3,029.5
|
Commitments and
contingencies
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
$
|
250.0
|
|
$
|
250.0
|
Partners' capital
(deficit):
|
|
|
|
|
|
|
Limited partners'
interest 79,964,002 units and 79,189,583 units issued and
outstanding as of September 30, 2023 and
December 31, 2022, respectively
|
|
$
|
(442.3)
|
|
$
|
(529.9)
|
General partner's
interest
|
|
|
2.8
|
|
|
0.5
|
Accumulated other
comprehensive loss
|
|
|
(8.1)
|
|
|
(8.3)
|
Total partners' capital
(deficit)
|
|
|
(447.6)
|
|
|
(537.7)
|
Total liabilities and
partners' capital (deficit)
|
|
$
|
2,804.8
|
|
$
|
2,741.8
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In millions)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
|
(In millions)
|
Operating activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
94.7
|
|
$
|
(96.2)
|
Non-cash RINs (gain)
expense
|
|
|
(134.0)
|
|
|
151.3
|
Unrealized (gain) loss
on derivative instruments
|
|
|
(18.8)
|
|
|
47.5
|
Other non-cash
activities
|
|
|
147.4
|
|
|
141.5
|
Changes in assets and
liabilities
|
|
|
(96.7)
|
|
|
(93.4)
|
Net cash provided by
(used in) operating activities
|
|
|
(7.4)
|
|
|
150.7
|
Investing activities
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(240.3)
|
|
|
(376.3)
|
Other investing
activities
|
|
|
—
|
|
|
0.2
|
Net cash used in
investing activities
|
|
|
(240.3)
|
|
|
(376.1)
|
Financing activities
|
|
|
|
|
|
|
Proceeds from
borrowings — revolving credit facility
|
|
|
1,585.6
|
|
|
1,139.0
|
Repayments of
borrowings — revolving credit facility
|
|
|
(1,618.5)
|
|
|
(1,052.0)
|
Proceeds from
borrowings — MRL revolving credit agreement
|
|
|
79.0
|
|
|
—
|
Repayments of
borrowings — MRL revolving credit agreement
|
|
|
(79.0)
|
|
|
—
|
Proceeds from
borrowings — senior notes
|
|
|
325.0
|
|
|
325.0
|
Repayments of
borrowings — senior notes
|
|
|
(121.0)
|
|
|
(363.1)
|
Proceeds from inventory
financing
|
|
|
1,229.3
|
|
|
1,598.2
|
Payments on inventory
financing
|
|
|
(1,235.2)
|
|
|
(1,603.6)
|
Proceeds from sale of
redeemable noncontrolling interest in subsidiary
|
|
|
—
|
|
|
200.0
|
Repayment of MRL credit
facility
|
|
|
—
|
|
|
(347.3)
|
Proceeds from other
financing obligations
|
|
|
101.5
|
|
|
279.6
|
Payments on other
financing obligations
|
|
|
(33.8)
|
|
|
(21.8)
|
Net cash provided by
financing activities
|
|
|
232.9
|
|
|
154.0
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
|
(14.8)
|
|
|
(71.4)
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
35.2
|
|
|
121.9
|
Cash, cash equivalents
and restricted cash at end of period
|
|
$
|
20.4
|
|
$
|
50.5
|
Cash and cash
equivalents
|
|
|
13.7
|
|
|
50.5
|
Restricted
cash
|
|
|
6.7
|
|
|
—
|
Supplemental disclosure of non-cash investing
activities
|
|
|
|
|
|
|
Non-cash property,
plant and equipment additions
|
|
$
|
31.7
|
|
$
|
121.8
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. NON-GAAP
RECONCILIATIONS RECONCILIATION OF NET INCOME
(LOSS) TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH
FLOW (In millions)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
(In millions)
|
|
|
(Unaudited)
|
Reconciliation of Net income (loss) attributable to
partners to EBITDA, Adjusted EBITDA and Distributable Cash
Flow:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to partners
|
|
$
|
103.0
|
|
$
|
15.7
|
|
$
|
113.2
|
|
$
|
(95.1)
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
58.7
|
|
|
41.8
|
|
|
163.7
|
|
|
136.0
|
Depreciation and
amortization
|
|
|
34.0
|
|
|
25.3
|
|
|
96.7
|
|
|
74.3
|
Income tax
expense
|
|
|
0.5
|
|
|
1.5
|
|
|
1.4
|
|
|
2.8
|
Noncontrolling
interest adjustments
|
|
|
(4.6)
|
|
|
(0.9)
|
|
|
(12.4)
|
|
|
(0.9)
|
EBITDA
|
|
$
|
191.6
|
|
$
|
83.4
|
|
$
|
362.6
|
|
$
|
117.1
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
LCM / LIFO (gain)
loss
|
|
$
|
(4.5)
|
|
$
|
(0.5)
|
|
$
|
9.4
|
|
$
|
(7.7)
|
Unrealized (gain) loss
on derivative instruments
|
|
|
36.3
|
|
|
(28.1)
|
|
|
(18.8)
|
|
|
47.5
|
Debt extinguishment
costs
|
|
|
0.3
|
|
|
40.4
|
|
|
5.5
|
|
|
41.4
|
Amortization of
turnaround costs
|
|
|
9.7
|
|
|
4.9
|
|
|
27.0
|
|
|
16.4
|
Gain on impairment and
disposal of assets
|
|
|
—
|
|
|
(0.2)
|
|
|
—
|
|
|
(0.2)
|
RINs mark-to-market
(gain) loss
|
|
|
(173.4)
|
|
|
14.3
|
|
|
(215.9)
|
|
|
92.4
|
Equity-based
compensation and other items
|
|
|
13.8
|
|
|
13.0
|
|
|
22.5
|
|
|
16.6
|
Other non-recurring
expenses (1)
|
|
|
2.4
|
|
|
(0.2)
|
|
|
35.5
|
|
|
2.6
|
Noncontrolling
interest adjustments
|
|
|
(0.7)
|
|
|
—
|
|
|
(6.9)
|
|
|
—
|
Adjusted
EBITDA
|
|
$
|
75.5
|
|
$
|
127.0
|
|
$
|
220.9
|
|
$
|
326.1
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Replacement and
environmental capital expenditures (2)
|
|
$
|
21.9
|
|
$
|
26.5
|
|
$
|
53.6
|
|
$
|
53.3
|
Cash interest expense
(3)
|
|
|
57.2
|
|
|
40.5
|
|
|
159.5
|
|
|
119.6
|
Turnaround
costs
|
|
|
15.8
|
|
|
14.7
|
|
|
28.9
|
|
|
32.2
|
Income tax
expense
|
|
|
0.5
|
|
|
1.5
|
|
|
1.4
|
|
|
2.8
|
Distributable Cash
Flow
|
|
$
|
(19.9)
|
|
$
|
43.8
|
|
$
|
(22.5)
|
|
$
|
118.2
|
|
|
|
|
|
|
|
(1)
|
For the nine months
ended September 30, 2023, other non-recurring expenses included a
$28.4 million charge to cost of sales for losses under firm
purchase commitments.
|
(2)
|
Replacement capital
expenditures are defined as those capital expenditures which do not
increase operating capacity or reduce operating costs and exclude
turnaround costs. Environmental capital expenditures include asset
additions to meet or exceed environmental and operating
regulations.
|
(3)
|
Represents consolidated
interest expense less non-cash interest expense.
|
CALUMET SPECIALTY
PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT GROSS
PROFIT (LOSS) TO SEGMENT ADJUSTED GROSS
PROFIT (In millions, except per barrel
data)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
(Unaudited)
|
|
Reconciliation of Segment Gross Profit (Loss) to
Segment Adjusted Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Products and
Solution segment gross profit
|
|
$
|
158.9
|
|
$
|
123.4
|
|
$
|
314.5
|
|
$
|
229.2
|
|
LCM/LIFO inventory
(gain) loss
|
|
|
(4.4)
|
|
|
2.1
|
|
|
(1.7)
|
|
|
(1.3)
|
|
Other adjustments
(1)
|
|
|
(7.1)
|
|
|
—
|
|
|
(9.5)
|
|
|
—
|
|
RINs mark to market
(gain) loss
|
|
|
(109.8)
|
|
|
8.4
|
|
|
(135.5)
|
|
|
53.6
|
|
Depreciation and
amortization
|
|
|
19.1
|
|
|
15.5
|
|
|
54.0
|
|
|
47.3
|
|
Specialty Products and
Solutions segment Adjusted gross profit
|
|
$
|
56.7
|
|
$
|
149.4
|
|
$
|
221.8
|
|
$
|
328.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Brands
segment gross profit
|
|
$
|
21.0
|
|
$
|
17.0
|
|
$
|
66.0
|
|
$
|
44.5
|
|
LCM/LIFO inventory
(gain) loss
|
|
|
0.1
|
|
|
(0.3)
|
|
|
2.2
|
|
|
(0.5)
|
|
Other adjustments
(2)
|
|
|
(3.2)
|
|
|
—
|
|
|
(8.2)
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
0.7
|
|
|
0.7
|
|
|
2.0
|
|
|
1.9
|
|
Performance Brands
segment Adjusted gross profit
|
|
$
|
18.6
|
|
$
|
17.4
|
|
$
|
62.0
|
|
$
|
45.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Montana/Renewables
segment gross profit (loss)
|
|
$
|
81.7
|
|
$
|
(1.1)
|
|
$
|
49.2
|
|
$
|
42.2
|
|
LCM/LIFO inventory
(gain) loss
|
|
|
(0.2)
|
|
|
(2.3)
|
|
|
8.9
|
|
|
(5.9)
|
|
Loss on firm purchase
commitments
|
|
|
—
|
|
|
—
|
|
|
28.4
|
|
|
—
|
|
RINs mark to market
(gain) loss
|
|
|
(55.1)
|
|
|
5.1
|
|
|
(69.0)
|
|
|
32.4
|
|
Depreciation and
amortization
|
|
|
21.9
|
|
|
10.0
|
|
|
61.3
|
|
|
28.9
|
|
Montana/Renewables
segment Adjusted gross profit
|
|
$
|
48.3
|
|
$
|
11.7
|
|
$
|
78.8
|
|
$
|
97.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Specialty
Products and Solutions segment gross profit per barrel
|
|
$
|
28.77
|
|
$
|
21.65
|
|
$
|
19.66
|
|
$
|
13.63
|
|
LCM/LIFO inventory
(gain) loss per barrel
|
|
|
(0.80)
|
|
|
0.37
|
|
|
(0.11)
|
|
|
(0.08)
|
|
Other adjustments per
barrel
|
|
|
(1.29)
|
|
|
—
|
|
|
(0.59)
|
|
|
—
|
|
RINs mark to market
(gain) loss per barrel
|
|
|
(19.88)
|
|
|
1.47
|
|
|
(8.47)
|
|
|
3.19
|
|
Depreciation and
amortization per barrel
|
|
|
3.46
|
|
|
2.73
|
|
|
3.37
|
|
|
2.81
|
|
Specialty Products and
Solutions segment Adjusted gross profit per barrel
|
|
$
|
10.26
|
|
$
|
26.22
|
|
$
|
13.86
|
|
$
|
19.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Performance
Brands segment gross profit per barrel
|
|
$
|
160.31
|
|
$
|
139.34
|
|
$
|
167.09
|
|
$
|
112.09
|
|
LCM/LIFO inventory
(gain) loss per barrel
|
|
|
0.76
|
|
|
(2.46)
|
|
|
5.57
|
|
|
(1.26)
|
|
Other adjustments per
barrel
|
|
|
(24.43)
|
|
|
—
|
|
|
(20.76)
|
|
|
—
|
|
Depreciation and
amortization per barrel
|
|
|
5.34
|
|
|
5.74
|
|
|
5.06
|
|
|
4.79
|
|
Performance Brands
segment Adjusted gross profit per barrel
|
|
$
|
141.98
|
|
$
|
142.62
|
|
$
|
156.96
|
|
$
|
115.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Montana/Renewables segment gross profit (loss) per
barrel
|
|
$
|
41.66
|
|
$
|
(0.96)
|
|
$
|
9.19
|
|
$
|
6.78
|
|
LCM/LIFO inventory
(gain) loss per barrel
|
|
|
(0.10)
|
|
|
(2.00)
|
|
|
1.66
|
|
|
(0.95)
|
|
Loss on firm purchase
commitments per barrel
|
|
|
—
|
|
|
—
|
|
|
5.31
|
|
|
—
|
|
RINs mark to market
(gain) loss per barrel
|
|
|
(28.10)
|
|
|
4.43
|
|
|
(12.89)
|
|
|
5.21
|
|
Depreciation and
amortization per barrel
|
|
|
11.17
|
|
|
8.70
|
|
|
11.45
|
|
|
4.65
|
|
Montana/Renewables
segment Adjusted gross profit per barrel
|
|
$
|
24.63
|
|
$
|
10.17
|
|
$
|
14.72
|
|
$
|
15.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Products and
Solutions Adjusted EBITDA
|
|
$
|
38.7
|
|
$
|
131.7
|
|
$
|
176.1
|
|
$
|
283.3
|
|
Specialty Products and
Solutions sales
|
|
|
745.7
|
|
|
934.6
|
|
|
2,168.5
|
|
|
2,683.2
|
|
Specialty Products and
Solutions Adjusted EBITDA margin
|
|
|
5.2
|
%
|
|
14.1
|
%
|
|
8.1
|
%
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
(1)
|
For the three and nine
months ended September 30, 2023, other adjustments for the
Specialty Products and Solutions segment included a $7.1 million
and $9.5 million gain, respectively, for proceeds received under
the Company's property damage insurance policy.
|
(2)
|
For the three and nine
months ended September 30, 2023, other adjustments for the
Performance Brands segment included a $3.2 million and $8.2 million
gain, respectively, for proceeds received under the Company's
business interruption insurance policy.
|
View original
content:https://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-third-quarter-2023-results-301983384.html
SOURCE Calumet Specialty Products Partners, L.P.