Calumet Specialty Products Partners
Company Summary
Description
Calumet Specialty Products Partners, L.P. is a leading independent producer of high-quality, specialty hydrocarbon products. Our product lines include both naphthenic and paraffinic oils, aliphatic solvents, synthetic lubricants, asphalt, fuels, white mineral oils, waxes, petrolatums and hydrocarbon gels. Calumet Specialty Products Partners, L.P. has one of the most diverse specialty hydrocarbon capabilities in the world.Website
http://www.calumetspecialty.com/Financial Data:
NASDAQ:CLMT from Google FinanceTickers:
-
CLMT - NASDAQ
Related Entities
Recent news
- 1/24/2024 - Calumet Specialty... (subscriber access)
- 4/26/2023 - Calumet Specialty... (subscriber access)
- 3/27/2023 - Calumet Invited to Apply... (subscriber access)
- 7/7/2020 - Calumet Specialty... (subscriber access)
- 11/27/2019 - Calumet Reaches... (subscriber access)
Investor Presentations
- Calumet Investor Presentation May 2022
- Calumet Investor Presentation May 2022 (subscriber access)
Company Transactions
Date: 11/1/2019
Type: Acquisition
SELLERS:
Calumet Specialty Products Partners
ASSETS:
Calumet San Antonio Refinery
DETAILS:
COST: 63 $MM
VOLUMES: 21 MBOE/d
NOTES:
Calumet has closed on the sale of their San Antonio Crude Refinery, terminal and pipeline for $63 million to Starlight Relativity Acquisition Co. LLC. The facility had a throughput of 21 Mbbl/d and produced diesel, jet fuel, gasoline and other products.
Calumet has closed on the sale of their San Antonio Crude Refinery, terminal and pipeline for $63 million to Starlight Relativity Acquisition Co. LLC. The facility had a throughput of 21 Mbbl/d and produced diesel, jet fuel, gasoline and other products.
REGIONS:
South Texas
Date: 11/22/2017
Type: Acquisition
REGIONS:
United States
Date: 11/15/2017
Type: Acquisition
BUYERS:
Husky Energy Inc
SELLERS:
Calumet Specialty Products Partners
ASSETS:
Husky Superior Refinery
DETAILS:
COST: 435 $MM
VOLUMES: 50 M Bbls/d
NOTES:
Husky Energy has entered into an agreement to acquire 50 Mbbls/d Superior Refinery located in Superior, Wisconsin from Calumet Specialty Product Partners for a cash purchase price of $435 million.
Husky Energy has entered into an agreement to acquire 50 Mbbls/d Superior Refinery located in Superior, Wisconsin from Calumet Specialty Product Partners for a cash purchase price of $435 million.
REGIONS:
Midwest
News & Press Releases
Criterion News
- 1/24/2024 - Calumet Specialty... (subscriber access)
- 4/26/2023 - Calumet Specialty... (subscriber access)
- 3/27/2023 - Calumet Invited to Apply... (subscriber access)
- 7/7/2020 - Calumet Specialty... (subscriber access)
- 11/27/2019 - Calumet Reaches... (subscriber access)
- 11/12/2019 - Calumet Sells San... (subscriber access)
- 10/16/2019 - Calumet Specialty... (subscriber access)
- 2/6/2019 - Calumet Reports Year-End... (subscriber access)
- 8/1/2018 - GATE Energy Selected to... (subscriber access)
- 4/10/2018 - Calumet Specialty... (subscriber access)
- 3/8/2018 - Calumet Specialty... (subscriber access)
- 11/22/2017 - Calumet Divests Anchor... (subscriber access)
- 11/8/2017 - Husky Closes on... (subscriber access)
- 8/14/2017 - Husky Energy Enters Agreement to Acquire 50 Mbbls/d Superior Refinery
- 6/28/2016 - WBI Energy Sells Dakota... (subscriber access)
- 4/18/2016 - Calumet Specialty... (subscriber access)
- 4/18/2016 - Calumet Specialty... (subscriber access)
- 7/16/2015 - Dakota Prairie Refinery... (subscriber access)
Press Releases
- The Company has negotiated a sale-leaseback transaction with Stonebriar Commercial Finance for the fuels terminal assets at the Shreveport refinery for total gross consideration of $70 million. All fuels and specialty production assets are outside the scope of this transaction.
- The seven-year lease agreement carries an implied interest rate of approximately 8.4%, with cash proceeds expected to be deployed to redeem $70 million of the 2022 Notes.
- The Company expects the process to conclude promptly following the completion of the Consent Solicitation from holders of a majority of the 2022 Notes and 2023 Notes.
- Calumet remains well capitalized with total pre-transaction liquidity of approximately $263 million as of December 31, 2020, including approximately $109 million of cash.
- 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.
- 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.
- The Partnership anticipates that cash flow from operating activities for the second quarter will exceed $60 million
- As of the close of the second quarter, the Partnership had approximately $245 million of liquidity, consisting of:
- approximately $105 million of cash and cash equivalents, and
- approximately $140 million of undrawn capacity on the Partnership's revolving credit facility (ABL)
- 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.
- Portfolio is primarily focused on high-value specialty lubricants and chemicals business
- Core specialty businesses generate results that exhibit lower volatility with greater predictability to earnings
- Executed strategic divestiture of four non-core assets over last few years
- Focused on products with more consistent margin performance, particularly in niche markets and applications
- Remaining fuels production is heavily skewed towards diesel and away from gasoline
- Approximately $320 million of available liquidity as of March 31, 2020, including approximately $100 million of cash on hand and over $220 million of undrawn capacity on the Partnership's revolving credit facility (ABL)
- Capital budget guidance has been revised to $50-$60 million in 2020, down from original guidance of $80-$90 million
- Net working capital is expected to contribute additional cash in the near-term, due to the favorable direction of raw materials prices in relation to accounts receivable and inventories
- No debt maturities in 2020 or 2021
- Remain committed to the Self-Help program and will provide update during first quarter earnings call
- Has identified $20-$30 million of additional plant operating cost reductions, which include:
- Closure of the Farmingdale, NJ manufacturing facility
- 60-day furlough of the manufacturing employees at the Louisiana, MO facility
- 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.
- Delivered approximately one third, or $30 million, of the three-year (2019-2021) $100 million of incremental Adjusted EBITDA Phase II Self-Help goal in 2019
- Launched new specialty products growth initiatives, which include two debottlenecking projects, further rationalization and replacement of low margin tolling agreements, and additional finished lubricant expansion projects
- Announced new expense reduction plans designed to right-size General and Administrative (G&A) spending, which are expected to yield annual cost savings of approximately $20 million
- 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.
- $63 million sale price plus net working capital and inventories
- Release of $38 million balance sheet liability
- Further de-levers the company
- Reduces annual maintenance capital spending, improving future cash flow
- Completes effort to address original $900 million of notes maturing in 2021, with maturity of new notes at 5.5 years
- Net proceeds of the Offering plus borrowings under revolver and cash on hand to be used to redeem all existing senior notes due 2021
- Estimated annual interest expense of approximately $138 million based on current capital structure is significantly lower than the approximately $156 million of interest expense reported in 2018
- Issuing the new notes in the unsecured market provides optionality to address 2022 and 2023 maturities with free cash flow, asset sales, or refinancing, and preserves current credit ratings, enabling access to improved trade credit
- 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.
- 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.
- For fiscal 2019, total capital spending is expected to be between $80 million and $90 million. Included in the forecast is maintenance capital, expected turnaround activity and smaller growth capital projects.
- The Partnership recently announced Phase II of its self-help operations excellence initiative, with the goal of achieving roughly $100 million in Adjusted EBITDA by the year-end of 2021. The Company anticipates spending between $25 million and $45 million in capital over the three-year period to achieve these results. The Partnership is unable to provide a reconciliation of these projected Adjusted EBITDA amounts to projected net income (loss), the most comparable financial measure calculated in accordance with GAAP, due to the unknown effect, timing and potential significance of certain income statement items.
- 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.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- For fiscal 2018, total capital spending is expected to be between $80 million and $90 million. Included in the forecast is maintenance capital, expected turnaround activity at the Great Falls and Shreveport refineries and smaller growth capital projects.
- The Partnership remains on schedule to achieve the high end of its $150 million to $200 million in Adjusted EBITDA operations excellence initiative objectives by the end of 2018, with a projected $40 million to $50 million expected to be realized during fiscal year 2018. The Partnership is unable to provide a reconciliation of these projected Adjusted EBITDA amounts to projected net income (loss), the most comparable financial measure calculated in accordance with GAAP, due to the unknown effect, timing and potential significance of certain income statement items.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- Accretive to 2017 and 2018 cash flows
- Reduces leverage profile
- Decreases earnings volatility
- Decreases exposure to capital intensive fuels business
- Lowers go-forward obligation under the Renewable Fuel Standard
- Moves Calumet closer to its vision to become the premier specialty petroleum products company
- 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.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- Superior cooling properties along with the wider heat exchange properties of a naphthenic oil
- Outstanding oxidation stability under severe conditions, without the use of additives
- Fully miscible with insulating oils meeting IEC 60296:2012 and ASTM D3487 standards
- Meets IP 346 and Modified Ames Criteria for biological safety
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- Low volatility
- High viscosity index
- Excellent low temperature properties
- Outstanding oxidation/thermal stability
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
- Priced Private Placement of Senior Secured Notes Due 2021. As previously announced, on April 15, 2016, the Partnership priced a private placement of $400 million principal amount of 11.5% senior secured notes due 2021. The notes and the guarantees of the notes will be secured by a first-priority lien on all of the fixed assets that secure the Partnership's obligations under its secured hedge agreements and will be guaranteed on a senior secured basis by most of the Partnership's existing subsidiaries that guarantee obligations under its revolving credit facility and certain of the Partnership's future subsidiaries. The Partnership expects to use net proceeds from the offering to reduce outstanding borrowings under the Partnership's revolving credit facility, to terminate or cash collateralize certain of the Partnership's existing hedging obligations and for general partnership purposes. The offering is expected to close on April 20, 2016, subject to customary closing conditions.
- Announced Suspension in the Quarterly Cash Distribution. In view of current volatility in market conditions and as part of a broader effort to maintain an adequate level of liquidity at the Partnership, the Board of Directors of Calumet's General Partner unanimously voted to suspend the current quarterly cash distribution of $0.685 per unit, or $2.74 per unit on an annualized basis, effective for the quarter ended March 31, 2016.
- Preliminary Business Outlook – First Quarter 2016 Financial Information (Unaudited). For the first quarter 2016, based on preliminary data, the Partnership currently expects to report a net loss between $83.0 million and $59.0 million, Adjusted EBITDA of between $(5.0) million and $10.0 million and Adjusted EBITDA, Excluding Special Items of between $(17.0) million and $3.0 million. For a reconciliation of the preliminary estimate of Adjusted EBITDA and the preliminary estimate of Adjusted EBITDA, Excluding Special Items (each, a non-GAAP measure) to estimated net loss, the most directly comparable GAAP measure, see "Non-GAAP Financial Measures" below. Financial results for the first quarter 2016 reflect a combination of lower benchmark refined product margins, seasonal weakness in asphalt sales prices and volumes sold, and seasonal softness in the local market premium on motor fuel products sold, compared to benchmark Gulf Coast prices, and reduced customer drilling and completion activity in the oilfield services segment. As of March 31, 2016, the Partnership had estimated pro forma availability under its revolving credit facility, giving effect to the application of net proceeds from the notes offering, of $397.9 million, based on an estimated $461.4 million borrowing base, $63.5 million in outstanding standby letters of credit and no outstanding borrowings. In addition, we had an estimated $7.4 million of cash on hand as of March 31, 2016.
- 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; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
Calumet Specialty Products Partners, L.P. Announces Planned Sale-Leaseback Transaction for Shreveport Fuels Terminal Assets
Source: PR Newswire
Orignial Article: https://contentapi.cision...
INDIANAPOLIS, Feb. 1, 2021 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet," the "Partnership" or the "Company") (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, announced today that it has reached an agreement in principle to enter into a sale-leaseback transaction of its fuels terminal assets at the Company's Shreveport refinery, which transaction is subject to customary closing conditions and the Partnership obtaining consent to amend the indentures governing its 7.625% Senior Notes due 2022 (the "2022 Notes") and 7.75% Senior Notes due 2023 (the "2023 Notes") to permit the transaction. The Partnership announced that it has reached an agreement in principle with the bondholders necessary to obtain the required consents to amend such indentures. The Partnership launched the consent solicitation (the "Consent Solicitation") to holders of its outstanding 2022 Notes and 2023 Notes on February 1, 2021. The Consent Solicitation will expire at 5:00 p.m., New York City time, on February 5, 2021, unless extended or terminated.
Highlights of the Transaction:
Todd Borgmann, Senior Vice President & Chief Financial Officer, said, "This transaction will allow Calumet to create maximum debt management optionality at a low cost. Conservative management of our debt maturities enables us to pursue our strategic deleveraging options with a focus on maximizing long-term unitholder value with order and discipline."
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 timing of the Consent Solicitation and the expected participation by certain holders of 2022 Notes and 2023 Notes, (ii) the sale-leaseback transaction and expected use of proceeds thereof (iii) the effect, impact, potential duration or other implications of the ongoing novel coronavirus pandemic and global crude oil production levels on our business and operations, (iv) our expectation regarding our business outlook and cash flows, (v) our expectation regarding anticipated capital expenditures and strategic initiatives, and (vi) our ability to meet our financial commitments, debt service obligations, 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. 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. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the SEC, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-planned-sale-leaseback-transaction-for-shreveport-fuels-terminal-assets-301218948.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/1/202111/9/2020 - Calumet Specialty Products Partners, L.P. Announces the Addition of Paul C. Raymond to Board of Directors
Calumet Specialty Products Partners, L.P. Announces the Addition of Paul C. Raymond to Board of Directors
Source: PR Newswire
INDIANAPOLIS, Nov. 9, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet," the "Partnership" or the "Company") (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced Paul C. Raymond III was appointed to the Board of Directors of Calumet's general partner, Calumet GP, LLC on November 3, 2020.
Mr. Raymond joins Calumet's Board of Directors, having served in numerous senior executive leadership roles during a long career in specialty chemicals businesses. Mr. Raymond currently serves as Chief Executive Officer of Monument Chemical, Inc., a specialty chemical company owned in part by The Heritage Group. Prior to Monument, Mr. Raymond served as President and Chief Executive Officer of Sonneborn, LLC, a specialty hydrocarbon and high purity white oils manufacturer, from 2012 until its acquisition by HollyFrontier Corp in 2019. Prior to Sonneborn, Mr. Raymond served as President of Ashland Water Technologies, a $1.9 billion global leader in specialty chemical solutions and services to water-intensive industries.
"We are very excited to welcome Paul to the Partnership and look forward to the contributions that he'll bring to Calumet and its future," said Steve Mawer, CEO of Calumet Specialty Products. "Paul brings over three decades of experience in specialty chemicals, and his addition as a director will further support our Specialty-focused strategy. We believe that Paul's deep specialty chemicals knowledge, strategic insights, and his impressive track record leading and growing similar businesses make him a terrific asset for Calumet."
The Board of Directors of Calumet GP, LLC is currently comprised of eight members. Mr. Raymond joins as the ninth Director.
Mr. Raymond holds a Bachelor of Science degree in Chemical Engineering from Rice University and earned his Ph.D. in Chemical Engineering from the University of Texas at Austin.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-the-addition-of-paul-c-raymond-to-board-of-directors-301169115.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/9/2020Calumet Specialty Products Partners, L.P. Reports Third Quarter 2020 Results
Source: PR Newswire
INDIANAPOLIS, Nov. 6, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the third quarter ended September 30, 2020, as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||
Net loss | $ | (56.1) | $ | (4.6) | $ | (66.9) | $ | (5.0) | |||||||
Net loss per unit | $ | (0.70) | $ | (0.06) | $ | (0.83) | $ | (0.06) | |||||||
Adjusted net income (loss) | $ | (38.2) | $ | 8.4 | $ | (35.4) | $ | 13.9 | |||||||
Adjusted net income (loss) per unit | $ | (0.49) | $ | 0.11 | $ | (0.45) | $ | 0.18 | |||||||
Adjusted EBITDA | $ | 25.4 | $ | 76.2 | $ | 150.1 | $ | 212.9 | |||||||
The Partnership's $56.1 million of Net loss and $0.70 Net loss per unit for the third quarter 2020 included a $1.1 million unfavorable net impact related to non-cash lower of cost or market ("LCM") inventory adjustments and a $9.2 million unrealized hedging loss. Excluding these and other non-cash charges, Adjusted net loss and Adjusted net loss per unit were $38.2 million and $0.49, respectively. The Partnership's $25.4 million of Adjusted EBITDA for the third quarter 2020 excluded a $1.1 million unfavorable net impact related to non-cash LCM inventory adjustments.
For detailed information on the non-GAAP measures presented in this release and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"The resilience and diversity of our core Specialty business was again demonstrated with this segment generating both profit and margin growth year-over-year, as Gross profit and Adjusted gross profit per barrel improved 7.2% and 13.3%, respectively versus last year's third quarter. Year to date, Specialty products segment Adjusted EBITDA of $176.6 million is trending 7% ahead of last year's results through the first three quarters. Growth in Specialty profitability was achieved despite the ongoing uncertainty and uneven pace of recovery due to COVID-19. Demand for consumer-facing specialties has held up well throughout the pandemic. However, this quarter was also notable for the material recovery in demand for our industrial specialties, reflected in improved sales volumes versus last quarter. Specialty products segment Adjusted EBITDA margin for the quarter of 19.9% was 540 basis points higher than last year's third quarter due to our commercial excellence and margin management focus. The increase in industrial specialty volumes did result in some quarter-over-quarter mix impact on segment margins; but overall specialty margins and profit levels remain well ahead of last year, and at or above our expectations. We believe this is a notable and impressive result given the macro backdrop."
Mawer continued, "The macro backdrop remains challenging for our Fuels business, but we are cautiously encouraged by the recent signs of recovering demand and falling product inventories. However, despite the external market environment, we remain intent on managing what we can control in that segment, whether that be from maximizing the value of our local niches, tactically accelerating maintenance work, or further enhancing the integration of our facilities in northwest Louisiana. We remain very pleased with how the market around our Great Falls refinery has been relatively insulated from the global fuels malaise."
Mawer concluded, "Earlier this year, we took decisive action in a number of areas, including substantial reductions in both operating costs and SG&A, together with aggressive yield management and an accelerated hedging program. These decisive actions, together with our resilient Specialties business, have allowed us to progress through the pandemic with positive free cash flow. This significant accomplishment allows us to focus on maximizing the opportunity that we expect recovering markets will present and leaves us with even stronger operating leverage looking forward."
Specialty Products Segment | Results Summary
Three Months Ended September 30, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Gross profit | $ | 86.5 | $ | 80.7 | |||
Adjusted gross profit | $ | 81.8 | $ | 79.8 | |||
Adjusted EBITDA | $ | 56.0 | $ | 51.6 | |||
Gross profit per barrel | $ | 40.52 | $ | 34.21 | |||
Adjusted gross profit per barrel | $ | 38.32 | $ | 33.83 | |||
Adjusted EBITDA Margin | 19.9 | % | 14.5 | % | |||
During the third quarter, the Specialty products segment gross profit was $86.5 million compared to $80.7 million in the year-ago period. The Specialty products segment Adjusted EBITDA of $56.0 million improved 8.5% versus the prior year period, while adjusted gross profit of $81.8 million, improved 2.5% compared to the third quarter of 2019. Adjusted EBITDA continues to be impacted by softer demand leading to lower sales volumes, although these headwinds were more than offset by stronger sales mix driven by growth in consumer-facing specialties, including Finished Lubricants and Chemicals, Penreco branded products, and waxes. Gross profit per barrel results of $40.52 grew more than 18% versus the prior year quarter, and Adjusted EBITDA margins of 19.9% grew 540 basis points versus 14.5% in last year's third quarter. This margin expansion was driven by profitability plans implemented in the prior year and commercial excellence initiatives that have catalyzed growth in sales volumes for consumer-facing specialties, including Finished Lubricants and Chemicals, Penreco branded products, and waxes.
Fuel Products Segment | Results Summary
Three Months Ended September 30, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Gross profit (loss) | $ | (41.9) | $ | 37.1 | |||
Adjusted gross profit (loss) | $ | (36.1) | $ | 40.7 | |||
Adjusted EBITDA | $ | (13.5) | $ | 47.7 | |||
Gross profit (loss) per barrel | $ | (7.31) | $ | 4.72 | |||
Adjusted gross profit (loss) per barrel | $ | (6.30) | $ | 5.18 | |||
During the third quarter, Fuel products segment gross profit (loss) was $(41.9) million, compared to $37.1 million in the year-ago period. Fuels products adjusted gross profit (loss) and Adjusted EBITDA of $(36.1) million and $(13.5) million, respectively, were down significantly compared to the year-ago period driven by the significant decline in crack spreads and tightening crude differentials versus the prior year. In particular, the average WCS/WTI crude differential tightened by $3 per barrel compared to the third quarter of 2019, which was the primary driver of the material declines in gross profit (loss) per barrel and Adjusted gross profit (loss) per barrel performance across the quarter. Additionally, RINs costs increased during the quarter, impacting segment gross profit (loss) and Adjusted EBITDA results. These increased compliance costs were partially offset by the record fuels product rack sales in local markets.
Partnership Liquidity
As of September 30, 2020, the Partnership had total liquidity of $269.3 million, comprised of $109.4 million of cash and $159.9 million of availability under the revolving credit facility. As of September 30, 2020, Calumet had a $289.7 million borrowing base, $29.7 million in outstanding standby letters of credit and $100.1 million of outstanding borrowings under the revolving credit facility. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Full-Year 2020 Capital Spending Forecast
Through the third quarter of 2020, total capital spending, including turnaround investments, was $46.9 million. For the full-year 2020, the Partnership continues to expect to incur capital expenditures of approximately $50.0 million to $60.0 million , which reflects our previously announced reduction in expected capital expenditures for 2020 due to increased volatility with domestic and global demand resulting from the ongoing COVID-19 pandemic.
Operations Summary
The following table sets forth information about the Partnership's combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
(In bpd) | |||||||||||
Total sales volume (1) | 85,529 | 111,022 | 88,429 | 107,670 | |||||||
Total feedstock runs (2) | 81,813 | 110,447 | 85,282 | 106,784 | |||||||
Facility production: (3) | |||||||||||
Specialty products: | |||||||||||
Lubricating oils | 10,634 | 11,937 | 9,839 | 11,872 | |||||||
Solvents | 6,323 | 7,493 | 6,500 | 7,580 | |||||||
Waxes | 1,199 | 1,440 | 1,253 | 1,416 | |||||||
Packaged and synthetic specialty products (4) | 1,458 | 1,384 | 1,407 | 1,667 | |||||||
Other | 790 | 2,037 | 1,747 | 1,626 | |||||||
Total | 20,404 | 24,291 | 20,746 | 24,161 | |||||||
Fuel products: | |||||||||||
Gasoline | 17,017 | 23,603 | 18,181 | 23,816 | |||||||
Diesel | 23,499 | 30,479 | 25,161 | 29,729 | |||||||
Jet fuel | 4,301 | 5,213 | 3,673 | 4,462 | |||||||
Asphalt, heavy fuel oils and other | 13,540 | 22,248 | 14,520 | 21,031 | |||||||
Total | 58,357 | 81,543 | 61,535 | 79,038 | |||||||
Total facility production (3) | 78,761 | 105,834 | 82,281 | 103,199 | |||||||
(1) | Total sales volume includes sales from the production at the Partnership's 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in the Partnership's fuel products segment sales. |
The decrease in total sales volume for the three and nine months ended September 30, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery, the terminated third-party naphthenic lubricating oil production arrangement, and softened demand due to the COVID-19 pandemic. | |
(2) | Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
The decrease in total feedstock runs for the three and nine months ended September 30, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery, the terminated third-party naphthenic lubricating oil production arrangement, and softened demand due to the COVID-19 pandemic. | |
(3) | Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
The change in total facility production for the three and nine months ended September 30, 2020, as compared to the same period in 2019, is due primarily to the items discussed above. | |
(4) | Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. |
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on November 6, 2020 to discuss the financial and operational results for the third quarter of 2020. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the conference ID 8054089. 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) 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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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 the ongoing novel coronavirus ("COVID-19") pandemic on our business and operations, (ii) the demand for refined petroleum products in markets we serve, (iii) our expectation regarding our business outlook and cash flows, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, and (v) our ability to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures. These forward-looking statements are based on our current expectations, projections and beliefs concerning future developments and their potential effect on our business and industry. 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 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 acquisitions or dispositions. 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 our actual results to differ materially from those in the forward-looking statements are those described in (i) Part I, Item 1A "Risk Factors" and Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and (ii) Part I, Item 3 "Quantitative and Qualitative Disclosures About Market Risk" and Part II, Item 1A "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
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 the other cautionary statements in our latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
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.
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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
During the first quarter of 2020, we changed how we calculate Adjusted EBITDA, which is used by management for evaluating performance, allocating resources and managing our business. The revised calculation of Adjusted EBITDA now excludes the impact of LCM inventory adjustments and the liquidation of inventory layers calculated using the last-in, first-out ("LIFO") method, which were previously included. This revised calculation better reflects the performance of our business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change. We previously also presented Adjusted EBITDA (excluding LCM/LIFO), which is consistent with our revised definition of Adjusted EBITDA.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including amortization of debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark-to-market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) LCM inventory adjustments; and (i) the impact of liquidation of inventory layers calculated using the LIFO method.
Adjusted net income (loss) per unit: We define Adjusted net income (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units basic and diluted.
Specialty products segment Adjusted gross profit: We define Specialty products segment Adjusted gross profit for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of inventory layers calculated using the LIFO method.
Fuel products segment Adjusted gross profit (loss): We define Fuel products segment Adjusted gross profit (loss) for any period as Fuel products segment gross profit (loss) excluding the impact of LCM inventory adjustments and the impact of liquidation of inventory layers calculated using the LIFO method.
Further, management and various investors use the ratio of Net debt (defined as total debt less cash) to Adjusted EBITDA, or "net debt leverage," as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. The metric "total debt less cash" includes borrowed long-term debt, letters of credit, and capital lease obligations, less cash.
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 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"). Our 7.75% senior notes due April 15, 2023, that were issued in March 2015 (the "2023 Notes"), our 9.25% senior secured first lien notes due July 15, 2024, that were issued in August 2020 (the "2024 Secured Notes"), and our 11.00% senior notes due April 15, 2025, that were issued in October 2019 (the "2025 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 2022 Notes, 2023 Notes, 2024 Secured Notes, and 2025 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit (loss) should not be considered alternatives to Net income (loss), 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, Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit (loss) management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit (loss) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit 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, Adjusted net income (loss), Adjusted net income (loss) per unit 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, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; 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. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales | $ | 568.0 | $ | 929.6 | $ | 1,714.3 | $ | 2,677.8 | |||||||
Cost of sales | 523.4 | 811.8 | 1,526.1 | 2,316.9 | |||||||||||
Gross profit | 44.6 | 117.8 | 188.2 | 360.9 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 11.2 | 12.6 | 37.1 | 40.2 | |||||||||||
General and administrative | 29.7 | 32.8 | 76.7 | 105.5 | |||||||||||
Transportation | 28.1 | 28.4 | 83.7 | 95.9 | |||||||||||
Taxes other than income taxes | 3.9 | 5.7 | 6.2 | 15.5 | |||||||||||
Loss on impairment and disposal of assets | — | 3.2 | 6.7 | 31.1 | |||||||||||
Other operating expense | 2.5 | 1.7 | 9.7 | 0.8 | |||||||||||
Operating income (loss) | (30.8) | 33.4 | (31.9) | 71.9 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (33.3) | (33.8) | (93.2) | (99.2) | |||||||||||
Gain on debt extinguishment | — | — | — | 0.7 | |||||||||||
Gain (loss) on derivative instruments | 7.9 | (5.0) | 57.7 | 14.4 | |||||||||||
Other | 0.2 | 1.3 | 1.3 | 7.9 | |||||||||||
Total other expense | (25.2) | (37.5) | (34.2) | (76.2) | |||||||||||
Net loss before income taxes | (56.0) | (4.1) | (66.1) | (4.3) | |||||||||||
Income tax expense | 0.1 | 0.5 | 0.8 | 0.7 | |||||||||||
Net loss | $ | (56.1) | $ | (4.6) | $ | (66.9) | $ | (5.0) | |||||||
Allocation of net loss: | |||||||||||||||
Net loss | $ | (56.1) | $ | (4.6) | $ | (66.9) | $ | (5.0) | |||||||
Less: | |||||||||||||||
General partner's interest in net loss | (1.1) | (0.1) | (1.3) | (0.1) | |||||||||||
Net loss available to limited partners | $ | (55.0) | $ | (4.5) | $ | (65.6) | $ | (4.9) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic and diluted | 78,743,083 | 78,299,472 | 78,602,651 | 78,174,976 | |||||||||||
Limited partners' interest basic and diluted net loss per unit: | |||||||||||||||
Limited partners' interest | $ | (0.70) | $ | (0.06) | $ | (0.83) | $ | (0.06) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
September 30, | December 31, 2019 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 109.4 | $ | 19.1 | |||
Accounts receivable, net | 161.1 | 175.0 | |||||
Other | 13.9 | 13.5 | |||||
175.0 | 188.5 | ||||||
Inventories | 230.8 | 292.6 | |||||
Derivative assets | 13.0 | 0.9 | |||||
Prepaid expenses and other current assets | 12.8 | 11.0 | |||||
Total current assets | 541.0 | 512.1 | |||||
Property, plant and equipment, net | 932.9 | 973.5 | |||||
Goodwill | 172.5 | 171.4 | |||||
Other intangible assets, net | 61.3 | 71.2 | |||||
Operating lease right-of-use assets | 66.4 | 93.1 | |||||
Other noncurrent assets, net | 33.4 | 36.5 | |||||
Total assets | $ | 1,807.5 | $ | 1,857.8 | |||
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 158.4 | $ | 230.2 | |||
Accrued interest payable | 45.5 | 32.0 | |||||
Accrued salaries, wages and benefits | 31.4 | 35.7 | |||||
Other taxes payable | 15.7 | 11.8 | |||||
Obligations under inventory financing agreements | 89.2 | 134.3 | |||||
Other current liabilities | 103.0 | 58.6 | |||||
Current portion of operating lease liabilities | 26.4 | 60.6 | |||||
Current portion of long-term debt | 2.1 | 1.8 | |||||
Total current liabilities | 471.7 | 565.0 | |||||
Pension and postretirement benefit obligations | 7.4 | 7.9 | |||||
Other long-term liabilities | 19.4 | 20.8 | |||||
Long-term operating lease liabilities | 40.5 | 33.0 | |||||
Long-term debt, less current portion | 1,313.3 | 1,209.5 | |||||
Total liabilities | 1,852.3 | 1,836.2 | |||||
Commitments and contingencies | |||||||
Partners' capital (deficit): | |||||||
Limited partners' interest | (44.9) | 20.2 | |||||
General partner's interest | 10.7 | 12.0 | |||||
Accumulated other comprehensive loss | (10.6) | (10.6) | |||||
Total partners' capital (deficit) | (44.8) | 21.6 | |||||
Total liabilities and partners' capital (deficit) | $ | 1,807.5 | $ | 1,857.8 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Operating activities | |||||||
Net loss | $ | (66.9) | $ | (5.0) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 78.8 | 82.6 | |||||
Amortization of turnaround costs | 12.7 | 16.5 | |||||
Non-cash interest expense | 4.8 | 4.9 | |||||
Gain on debt extinguishments | — | (0.7) | |||||
Unrealized (gain) loss on derivative instruments | (21.2) | 20.2 | |||||
Loss on impairment and disposal of assets | 6.7 | 31.1 | |||||
Operating lease expense | 45.0 | 57.1 | |||||
Operating lease payments | (45.0) | (57.1) | |||||
Equity-based compensation | 2.5 | 4.9 | |||||
Lower of cost or market inventory adjustment | 35.3 | (38.8) | |||||
Other non-cash activities | 0.8 | (7.0) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 10.7 | (49.8) | |||||
Inventories | 26.6 | 29.6 | |||||
Prepaid expenses and other current assets | 1.3 | 4.6 | |||||
Derivative activity | (0.3) | (0.4) | |||||
Turnaround costs | (19.7) | (16.8) | |||||
Accounts payable | (55.5) | 61.7 | |||||
Accrued interest payable | 12.7 | 10.8 | |||||
Accrued salaries, wages and benefits | (5.7) | 2.6 | |||||
Other taxes payable | 3.9 | 6.0 | |||||
Other liabilities | 38.1 | (3.1) | |||||
Net cash provided by operating activities | $ | 65.6 | $ | 153.9 | |||
Investing activities | |||||||
Additions to property, plant and equipment | (35.5) | (27.4) | |||||
Acquisition of business, net of cash acquired | (3.3) | — | |||||
Proceeds from sale of unconsolidated affiliate | — | 5.0 | |||||
Proceeds from sale of property, plant and equipment | — | 3.7 | |||||
Net cash provided by discontinued investing activities | 0.9 | 5.0 | |||||
Net cash used in investing activities | $ | (37.9) | $ | (13.7) | |||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 895.9 | — | |||||
Repayments of borrowings — revolving credit facility | (795.8) | — | |||||
Repayments of borrowings — senior notes | — | (137.3) | |||||
Payments on finance lease obligations | (0.4) | (0.9) | |||||
Proceeds from inventory financing | 584.8 | 848.7 | |||||
Payments on inventory financing | (620.1) | (840.7) | |||||
Proceeds from other financing obligations | 31.4 | — | |||||
Payments on other financing obligations | (33.2) | (1.6) | |||||
Contributions from Calumet GP, LLC | — | 0.1 | |||||
Net cash provided by (used in) financing activities | $ | 62.6 | $ | (131.7) | |||
Net increase in cash and cash equivalents | $ | 90.3 | $ | 8.5 | |||
Cash and cash equivalents at beginning of period | 19.1 | 155.7 | |||||
Cash and cash equivalents at end of period | $ | 109.4 | $ | 164.2 | |||
Supplemental disclosure of non-cash investing activities | |||||||
Non-cash property, plant and equipment additions | $ | 3.8 | $ | 12.3 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net loss to EBITDA, Adjusted | (Unaudited) | ||||||||||||||
Net loss | $ | (56.1) | $ | (4.6) | $ | (66.9) | $ | (5.0) | |||||||
Add: | |||||||||||||||
Interest expense | 33.3 | 33.8 | 93.2 | 99.2 | |||||||||||
Depreciation and amortization | 26.2 | 27.4 | 78.8 | 82.6 | |||||||||||
Income tax expense | 0.1 | 0.5 | 0.8 | 0.7 | |||||||||||
EBITDA | $ | 3.5 | $ | 57.1 | $ | 105.9 | $ | 177.5 | |||||||
Add: | |||||||||||||||
LCM / LIFO (gain) loss | $ | 1.1 | $ | 2.7 | $ | 35.5 | $ | (37.9) | |||||||
Unrealized (gain) loss on derivative instruments | 9.2 | 5.4 | (21.2) | 20.2 | |||||||||||
Amortization of turnaround costs | 4.0 | 6.1 | 12.7 | 16.5 | |||||||||||
Gain from debt extinguishment | — | — | — | (0.7) | |||||||||||
Loss on impairment and disposal of assets | — | 3.2 | 6.7 | 31.1 | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | — | (1.2) | |||||||||||
Equity-based compensation and other items | 2.1 | 0.4 | 6.2 | 6.1 | |||||||||||
Other non-recurring expenses | 5.5 | 1.3 | 4.3 | 1.3 | |||||||||||
Adjusted EBITDA | $ | 25.4 | $ | 76.2 | $ | 150.1 | $ | 212.9 | |||||||
Less: | |||||||||||||||
Replacement and environmental capital | $ | 5.3 | $ | 13.4 | $ | 17.6 | $ | 27.0 | |||||||
Cash interest expense (2) | 31.6 | 32.4 | 88.4 | 94.3 | |||||||||||
Turnaround costs | 3.6 | 10.4 | 19.7 | 16.8 | |||||||||||
Gain from unconsolidated affiliates | — | — | — | 3.8 | |||||||||||
Income tax expense | 0.1 | 0.5 | 0.8 | 0.7 | |||||||||||
Distributable Cash Flow | $ | (15.2) | $ | 19.5 | $ | 23.6 | $ | 70.3 | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
Nine Months Ended September 30, | |||||||
2020 | 2019 | ||||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash | (Unaudited) | ||||||
Distributable Cash Flow | $ | 23.6 | $ | 70.3 | |||
Add: | |||||||
Replacement and environmental capital expenditures (1) | 17.6 | 27.0 | |||||
Cash interest expense (2) | 88.4 | 94.3 | |||||
Turnaround costs | 19.7 | 16.8 | |||||
Gain from unconsolidated affiliates | — | 3.8 | |||||
Income tax expense | 0.8 | 0.7 | |||||
Adjusted EBITDA | $ | 150.1 | $ | 212.9 | |||
Less: | |||||||
LCM / LIFO (gain) loss | $ | 35.5 | $ | (37.9) | |||
Unrealized (gain) loss on derivative instruments | (21.2) | 20.2 | |||||
Amortization of turnaround costs | 12.7 | 16.5 | |||||
Gain on debt extinguishment | — | (0.7) | |||||
Loss on impairment and disposal of assets | 6.7 | 31.1 | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Equity-based compensation and other items | 6.2 | 6.1 | |||||
Other non-recurring expenses | 4.3 | 1.3 | |||||
EBITDA | $ | 105.9 | $ | 177.5 | |||
Add: | |||||||
Unrealized (gain) loss on derivative instruments | $ | (21.2) | $ | 20.2 | |||
Cash interest expense (2) | (88.4) | (94.3) | |||||
Other non-recurring expenses | 4.3 | — | |||||
Equity-based compensation | 2.5 | 4.9 | |||||
Lower of cost or market inventory adjustment | 35.3 | (38.8) | |||||
Gain from unconsolidated affiliates | — | (3.8) | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Amortization of turnaround costs | 12.7 | 16.5 | |||||
Gain on debt extinguishment | — | (0.7) | |||||
Operating lease expense | 45.0 | 57.1 | |||||
Operating lease payments | (45.0) | (57.1) | |||||
Loss on impairment and disposal of assets | 6.7 | 31.1 | |||||
Income tax expense | (0.8) | (0.7) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 10.7 | (49.8) | |||||
Inventories | 26.6 | 29.6 | |||||
Other current assets | 1.3 | 4.6 | |||||
Derivative activity | (0.3) | (0.4) | |||||
Turnaround costs | (19.7) | (16.8) | |||||
Accounts payable | (55.5) | 61.7 | |||||
Accrued interest payable | 12.7 | 10.8 | |||||
Other liabilities | 36.3 | 5.5 | |||||
Other | (3.5) | (2.0) | |||||
Net cash provided by operating activities | $ | 65.6 | $ | 153.9 | |||
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude environment capital expenditures and turnaround costs. Environmental capital expenditures include asset additions to meet or exceed environmental and operating regulations. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In millions) | |||||||||||||||
Reconciliation of Adjusted EBITDA to EBITDA | |||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||
Specialty products Adjusted EBITDA | $ | 56.0 | $ | 51.6 | $ | 176.6 | $ | 165.1 | |||||||
Fuel products Adjusted EBITDA | (13.5) | 47.7 | 27.6 | 123.8 | |||||||||||
Corporate Adjusted EBITDA | (17.1) | (23.1) | (54.1) | $ | (76.0) | ||||||||||
Total Adjusted EBITDA | $ | 25.4 | $ | 76.2 | $ | 150.1 | $ | 212.9 | |||||||
Less: | |||||||||||||||
LCM / LIFO (gain) loss | $ | 1.1 | $ | 2.7 | $ | 35.5 | $ | (37.9) | |||||||
Unrealized (gain) loss on derivative instruments | 9.2 | 5.4 | (21.2) | 20.2 | |||||||||||
Amortization of turnaround costs | 4.0 | 6.1 | 12.7 | 16.5 | |||||||||||
Gain on debt extinguishment | — | — | — | (0.7) | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | — | (1.2) | |||||||||||
Loss on impairment and disposal of assets | — | 3.2 | 6.7 | 31.1 | |||||||||||
Equity-based compensation and other items | 2.1 | 0.4 | 6.2 | 6.1 | |||||||||||
Other non-recurring expenses | 5.5 | 1.3 | 4.3 | 1.3 | |||||||||||
EBITDA | $ | 3.5 | $ | 57.1 | $ | 105.9 | $ | 177.5 | |||||||
Less: | |||||||||||||||
Interest expense | $ | 33.3 | $ | 33.8 | $ | 93.2 | $ | 99.2 | |||||||
Depreciation and amortization | 26.2 | 27.4 | 78.8 | 82.6 | |||||||||||
Income tax expense | 0.1 | 0.5 | 0.8 | 0.7 | |||||||||||
Net loss | $ | (56.1) | $ | (4.6) | $ | (66.9) | $ | (5.0) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Segment Metrics Excluding | (Unaudited) | ||||||||||||||
Specialty products segment gross profit | $ | 86.5 | $ | 80.7 | $ | 240.9 | $ | 255.6 | |||||||
LCM inventory adjustments | (4.7) | (0.9) | 13.3 | (7.1) | |||||||||||
LIFO inventory layer adjustments | — | — | — | 0.9 | |||||||||||
Specialty products segment Adjusted gross profit | $ | 81.8 | $ | 79.8 | $ | 254.2 | $ | 249.4 | |||||||
Fuel products segment gross profit (loss) | $ | (41.9) | $ | 37.1 | $ | (52.7) | $ | 105.3 | |||||||
LCM inventory adjustments | 5.8 | 3.6 | 22.2 | (31.7) | |||||||||||
Fuel products segment Adjusted gross profit (loss) | $ | (36.1) | $ | 40.7 | $ | (30.5) | $ | 73.6 | |||||||
Reported Specialty products segment gross profit per | $ | 40.52 | $ | 34.21 | $ | 39.09 | $ | 36.30 | |||||||
LCM/LIFO inventory adjustments per barrel | (2.20) | (0.38) | 2.16 | (0.88) | |||||||||||
Specialty products segment Adjusted gross profit per | $ | 38.32 | $ | 33.83 | $ | 41.25 | $ | 35.42 | |||||||
Reported Fuel products segment gross profit (loss) per | $ | (7.31) | $ | 4.72 | $ | (2.92) | $ | 4.71 | |||||||
LCM/LIFO inventory adjustments per barrel | 1.01 | 0.46 | 1.23 | (1.42) | |||||||||||
Fuel products segment Adjusted gross profit (loss) per | $ | (6.30) | $ | 5.18 | $ | (1.69) | $ | 3.29 | |||||||
Specialty products Adjusted EBITDA | $ | 56.0 | $ | 51.6 | $ | 176.6 | $ | 165.1 | |||||||
Specialty products sales | 281.3 | 355.8 | 840.9 | 1,052.4 | |||||||||||
Specialty products Adjusted EBITDA margin | 19.9 | % | 14.5 | % | 21.0 | % | 15.7 | % | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net Loss to Adjusted Net Income | (Unaudited) | ||||||||||||||
Net loss | $ | (56.1) | $ | (4.6) | $ | (66.9) | $ | (5.0) | |||||||
Add: | |||||||||||||||
LCM inventory adjustments | 1.1 | 2.7 | 35.5 | (38.8) | |||||||||||
LIFO inventory layer adjustments | — | — | — | 0.9 | |||||||||||
Unrealized (gain) loss on derivative instruments | 9.2 | 5.4 | (21.2) | 20.2 | |||||||||||
Gain from debt extinguishment | — | — | — | (0.7) | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | — | (1.2) | |||||||||||
Loss on impairment and disposal of assets | — | 3.2 | 6.7 | 31.1 | |||||||||||
Other non-recurring expenses | 5.5 | 1.3 | 4.3 | 1.3 | |||||||||||
Equity based compensation and other non-cash items | 2.1 | 0.4 | 6.2 | 6.1 | |||||||||||
Adjusted net income (loss) | $ | (38.2) | $ | 8.4 | $ | (35.4) | $ | 13.9 | |||||||
Adjusted net income (loss) per unit | $ | (0.49) | $ | 0.11 | $ | (0.45) | $ | 0.18 | |||||||
Average limited partner units - basic and diluted | 78,743,083 | 78,299,472 | 78,602,651 | 78,174,976 | |||||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
September 30, | |||||||
2020 | 2019 | ||||||
Reconciliation of Net Debt / LTM Adjusted EBITDA | (Unaudited) | ||||||
Revolving Credit Facility | $ | 100.1 | $ | — | |||
6.50% Senior Notes due 2021 | — | 761.2 | |||||
7.625% Senior Notes due 2022 | 150.0 | 350.0 | |||||
7.75% Senior Notes due 2023 | 325.0 | 325.0 | |||||
9.25% Senior Secured First Lien Notes due 2024 | 200.0 | — | |||||
11.00% Senior Notes due 2025 | 550.0 | — | |||||
Finance Leases | 3.9 | 2.8 | |||||
Other | 2.7 | 4.1 | |||||
Total Debt | $ | 1,331.7 | $ | 1,443.1 | |||
Less Cash | $ | 109.4 | $ | 164.2 | |||
Net Debt | $ | 1,222.3 | $ | 1,278.9 | |||
LTM Adjusted EBITDA | $ | 200.0 | $ | 319.9 | |||
Net Debt / LTM Adjusted EBITDA | 6.1 | x | 4.0 | x | |||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-third-quarter-2020-results-301167659.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/6/202010/28/2020 - Calumet Specialty Products Partners, L.P. to Release Third Quarter 2020 Results on November 6
Calumet Specialty Products Partners, L.P. to Release Third Quarter 2020 Results on November 6
Source: PR Newswire
INDIANAPOLIS, Oct. 28, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, announced today that it plans to report results for the fiscal third quarter 2020 on November 6, 2020. A conference call to discuss the financial and operational results is scheduled for November 6, 2020 at 9:00 AM ET.
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 https://edge.media-server.com/mmc/p/at5co4qq. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the conference ID 8054089. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-third-quarter-2020-results-on-november-6-301162229.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
10/28/2020Calumet Specialty Products Partners, L.P. Appoints Interim CFO and New CAO
Source: PR Newswire
INDIANAPOLIS, Aug. 11, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet," the "Partnership" or the "Company") (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, announced today that it has named L. Todd Borgmann as the Partnership's Senior Vice President & Interim Chief Financial Officer ("CFO"). Borgmann will assume the CFO duties on September 1, 2020 following an orderly transition with the current EVP & CFO, H. Keith Jennings, who has announced he will leave the organization effective August 31, 2020. As Interim CFO, Borgmann will help execute Calumet's ongoing transformation strategy to become a premier specialty products company. He will lead all treasury, tax, IT and capital market activities and be charged with managing the Partnership's balance sheet and improving its corporate finance capabilities.
Calumet also named Vincent Donargo as the Partnership's Chief Accounting Officer ("CAO") effective August 10, 2020. Mr. Donargo has served as the Company's interim CAO since June of this year. He will lead Calumet's accounting function and will continue the work to improve the Company's internal controls.
Steve Mawer, Chief Executive Officer, said, "We are excited and fortunate to transition Todd into the CFO role as he brings over 12 years of experience with Calumet across a variety of management roles and responsibilities. His deep understanding of Calumet's business and sharp financial mind make him perfect for the role as we remain focused on driving positive cash flow from operations, enhancing our liquidity, and improving the Partnership's balance sheet and leverage metrics. We are also looking forward to continuing to work with Vince as our Chief Accounting Officer. Vince brings extensive public company finance experience and has done an excellent job as our interim CAO."
Borgmann added, "I am looking forward to moving into the CFO role on an interim basis. We have a strong finance team, and I am eager to build upon the momentum that the company has been generating. My time with Calumet has allowed me to develop a comprehensive understanding of our business and the industries in which we operate. I am confident that we, as a management team, can leverage this experience to drive value for our unitholders and stakeholders."
Mr. Borgmann has over twelve years of experience with Calumet, serving the Company across a diverse set of management roles. For the last five years, Borgmann served as Vice President of Supply & Trading, developing extensive knowledge of petroleum markets, refining operations and risk management. Borgmann has also served as Calumet's Vice President of Business Development and Director of the Partnership's White Oils and Petrolatums sales. Borgmann earned a Bachelor of Science in Industrial Engineering from Purdue University and a Masters of Business Administration from the University of Notre Dame.
Mr. Donargo has served as the interim Chief Accounting Officer for Calumet since June 2020. Prior to joining Calumet, Donargo served as Chief Accounting Officer at Celadon Group Inc., a public transportation and logistics provider with over $1 billion in annual revenue, a role in which he served since November 2017. Previously, Donargo served in a variety of financial and accounting roles, including Chief Financial Officer and Treasurer of Beaulieu Group, and Executive Vice President of Finance Operations at Brightstar Corporation. Donargo earned a Bachelor of Arts from Rutgers University.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-appoints-interim-cfo-and-new-cao-301109958.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/11/2020Weatherford Appoints New Executive Vice President, Chief Financial Officer
Source: PR Newswire
HOUSTON, Aug. 10, 2020 /PRNewswire/ -- Weatherford International plc (OTC Pink: WFTLF) announced today H. Keith Jennings will join the company as Executive Vice President and Chief Financial Officer, effective September 1, 2020.
Mr. Jennings joins Weatherford with more than 25 years of international financial leadership with multinational enterprises, both public and private. Mr. Jennings joins us from Calumet Specialty Products Partners L.P. (Nasdaq:CLMT), where he served as an Executive Vice President and Chief Financial Officer.
Karl Blanchard, Interim Chief Executive Officer, Executive Vice President, and Chief Operating Officer, commented, "We are pleased to welcome Keith to Weatherford's executive management team. Keith brings a proven track record of creating stakeholder value, corporate finance expertise as well as a healthy understanding of the oil and gas industry. We look forward to his leadership, experience and insight as part of the management team."
About H. Keith Jennings
Jennings has over 25 years of financial experience, including the oilfield service and equipment industry. Jennings joins Weatherford from Calumet Specialty Products Partners L.P. where he served as Executive Vice President and Chief Financial Officer. Prior to that he served successively as Vice President, Finance and Vice President and Treasurer for Eastman Chemical Company. Prior to this, Jennings was Vice President and Treasurer of Cameron International Corporation. Earlier in his career, Jennings held progressively responsible finance leadership roles in Alghanim Industries, PepsiCo, Inc., Ingersoll-Rand and Monsanto. Jennings holds a Bachelor of Commerce Degree from the University of Toronto and an MBA from Columbia University.
About Weatherford
Weatherford is a leading wellbore and production solutions company. Operating in more than 80 countries, the Company answers the challenges of the energy industry with its global talent network of approximately 19,000 team members and 600 locations, which include service, research and development, training, and manufacturing facilities. Visit weatherford.com for more information or connect on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Investor Contact:
Sebastian Pellizzer
Senior Director, Investor Relations
+1 713-836-7777
investor.relations@weatherford.com
Media Contact:
Christopher Wailes
Director, Global Media Engagement
+1. 832.851.8308
Christopher.Wailes@weatherford.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/weatherford-appoints-new-executive-vice-president-chief-financial-officer-301109051.html
SOURCE Weatherford International plc
Article Date
8/10/2020Calumet Specialty Products Partners, L.P. Announces CFO Transition
Source: PR Newswire
INDIANAPOLIS, Aug. 6, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced that H. Keith Jennings notified the Board of Directors of Calumet that he plans to resign as Executive Vice President & Chief Financial Officer (CFO) effective August 31, 2020 to pursue other interests closer to his family in Texas.
Steve Mawer, Chief Executive Officer of Calumet, commented, "On behalf of everyone at Calumet, I want to thank Keith for everything he has accomplished during his time at Calumet. We have a strong finance team and we appreciate that Keith will be staying on for a full month to ensure a seamless transition. We've already started the transition process and will share the outcome of that in due course."
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-cfo-transition-301107264.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/6/2020Calumet Specialty Products Partners, L.P. Reports Second Quarter 2020 Results
Source: PR Newswire
INDIANAPOLIS, Aug. 6, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the second quarter ended June 30, 2020, as follows:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||
Net income (loss) | $ | 3.6 | $ | (16.8) | $ | (10.8) | $ | (0.4) | |||||||
Net income (loss) per unit | $ | 0.05 | $ | (0.21) | $ | (0.13) | $ | — | |||||||
Adjusted net income (loss) | $ | (19.6) | $ | 11.0 | $ | 2.8 | $ | 5.5 | |||||||
Adjusted net income (loss) per unit | $ | (0.25) | $ | 0.14 | $ | 0.04 | $ | 0.07 | |||||||
Adjusted EBITDA | $ | 41.0 | $ | 77.0 | $ | 124.7 | $ | 136.7 | |||||||
The Partnership's $3.6 million of Net income and $0.05 Net income per unit for the second quarter 2020 included a $32.1 million favorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments, a $0.7 million non-cash loss on impairment and disposal of assets and a $1.2 million unrealized hedging loss. Excluding these and other non-cash charges, Adjusted net loss and Adjusted net loss per unit were $(19.6) million and $(0.25), respectively. The Partnership's $41.0 million of Adjusted EBITDA for the second quarter 2020 excluded a $32.1 million favorable net impact related to the non-cash LCM inventory adjustments.
For detailed information on the non-GAAP measures presented in this release and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"Execution against our Specialty-focused strategy and continuing cost discipline helped drive another solid quarter of earnings results, as our Partnership continues to effectively manage through the uncertainty and volatility introduced into our markets related to the COVID-19 pandemic," said Steve Mawer, Chief Executive Officer of Calumet. "Our core specialty business demonstrated resilience as the consumer-facing business units continued to drive profitability and margin improvement, despite the deepened macro challenges in the quarter, evidenced by gross profit per barrel results of $46.86 which was an improvement of 49% compared to the first quarter of 2020. Adjusted gross profit per barrel results were $44.52 in the second quarter 2020, an increase of nearly 8% relative to the first quarter of 2020. Additionally, our commercial excellence initiatives, which have catalyzed strong sales volume growth in our consumer-facing specialty businesses continue to capture expanded margin performance, as Adjusted EBITDA margins grew by 440 basis points versus the sequential quarter. Our Fuels business operated well across the period, particularly the Great Falls refinery, delivering positive Adjusted EBITDA despite the pandemic-related, unprecedented demand degradation in transportation fuels markets and the weak crack spreads seen across the quarter."
Mawer added, "While the global pandemic has negatively impacted demand across a number of Calumet's end markets, the diversity of both our business and our customer base allowed us to drive quality results this quarter, and has proven the resilience of our businesses. As expected, we observed a general softening of demand in April, with sales volumes initially declining before troughing in May as the global pandemic negatively impacted industrial and commodity markets. Since then, we have observed broader incremental improvement to demand, and as sales volumes have begun rebounding, margin performance has remained steady. Year-to-date our Adjusted EBITDA in the Specialty segment has grown over 6% versus the prior year, giving credence to the strategic actions we have taken to reposition our portfolio around our consistent and defensible core specialty business."
Mawer concluded, "As we look forward towards the second half of the year, we will continue to prioritize the health and safety of our team, our customers and our communities. We remain steadfast in our commitment to our strategic goals, with a continued emphasis on managing our business for positive cash flow from operations, and improving the Partnership's balance sheet, leverage metrics, and enhancing our liquidity. While the demand landscape remains fluid, it appears to be improving, and we believe our business will continue to demonstrate resilience."
Specialty Products Segment | Results Summary
Three Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Gross profit | $ | 84.2 | $ | 82.0 | |||
Adjusted gross profit | $ | 80.0 | $ | 82.4 | |||
Adjusted EBITDA | $ | 56.1 | $ | 55.1 | |||
Gross profit per barrel | $ | 46.86 | $ | 36.59 | |||
Adjusted gross profit per barrel | $ | 44.52 | $ | 36.77 | |||
Adjusted EBITDA Margin | 24.1 | % | 16.0 | % | |||
During the second quarter, the Specialty products segment gross profit was $84.2 million compared to $82.0 million in the year-ago period. The Specialty products segment Adjusted EBITDA of $56.1 million improved 1.8% versus the prior year period, while adjusted gross profit of $80.0 million, declined 2.9% compared to the second quarter of 2019. Adjusted EBITDA was impacted by softening demand due to the pandemic, but these headwinds were largely offset from stronger margins in both the specialty oils and waxes businesses and the Finished Lubricants and Chemicals business. Continued focus on cost improvements in fixed operating, transportation, and SG&A contributed to the year-over-year improvement. Specialty products segment adjusted gross profit per barrel was $44.52, up 7.7% compared to the first quarter of 2020, driven by improved sales mix and contributions from the profitability plans implemented in the year prior. Adjusted EBITDA Margin was 24.1%, up 440 basis points compared to the first quarter of 2020, driven largely by sales mix enrichment efforts and sales volume growth in consumer specialties products, particularly Finished Lubricants and Chemicals as well as specialty oils and waxes.
Fuel Products Segment | Results Summary
Three Months Ended June 30, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Gross profit | $ | 5.1 | $ | 25.1 | |||
Adjusted gross profit | $ | (22.8) | $ | 22.1 | |||
Adjusted EBITDA | $ | 1.9 | $ | 50.2 | |||
Gross profit per barrel | $ | 0.83 | $ | 3.52 | |||
Adjusted gross profit per barrel | $ | (3.69) | $ | 3.10 | |||
During the second quarter, Fuel products segment gross profit was $5.1 million, compared to $25.1 million in the year-ago period. Fuels products adjusted gross profit and Adjusted EBITDA of $(22.8) million and $1.9 million, respectively, were down significantly compared to the year-ago period driven by the significant decline in crack spreads and tightening crude differentials versus the prior year. In particular, the average WCS/WTI crude differential tightened by $10.37 per barrel compared to the first quarter of 2020, which was the primary driver of the material declines in gross profit per barrel and Adjusted gross profit per barrel performance across the quarter. Additionally, RINs costs increased during the quarter, negatively impacting segment gross profit and Adjusted EBITDA results. These increased compliance costs were partially offset by the improved operational results stemming from the Partnership's operations improvement initiatives, which have improved capacity utilization and helped sustain profitability despite headwinds in the transportation fuels market.
Partnership Liquidity
As of June 30, 2020, the Partnership had total liquidity of $249.0 million, comprised of $105.4 million of cash and $143.6 million of availability under the revolving credit facility. As of June 30, 2020, Calumet had a $279.2 million borrowing base, $25.3 million in outstanding standby letters of credit and $110.3 million outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Full-Year 2020 Capital Spending Forecast
Through the second quarter of 2020, total capital spending, including turnaround investments, was $36.8 million. For the full-year 2020, the Partnership continues to expect to incur capital expenditures of approximately $50.0 million to $60.0 million, which reflects our previously announced reduction in expected capital expenditures for 2020 due to increased volatility with domestic and global demand resulting from the ongoing COVID-19 pandemic.
Operations Summary
The following table sets forth information about the Partnership's combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
(In bpd) | |||||||||||
Total sales volume (1) | 87,648 | 102,923 | 89,896 | 105,961 | |||||||
Total feedstock runs (2) | 82,768 | 104,415 | 87,035 | 104,921 | |||||||
Facility production: (3) | |||||||||||
Specialty products: | |||||||||||
Lubricating oils | 8,636 | 11,327 | 9,438 | 11,839 | |||||||
Solvents | 6,373 | 7,317 | 6,590 | 7,624 | |||||||
Waxes | 1,290 | 1,427 | 1,280 | 1,403 | |||||||
Packaged and synthetic specialty products (4) | 1,359 | 1,747 | 1,382 | 1,810 | |||||||
Other | 984 | 1,660 | 2,232 | 1,417 | |||||||
Total | 18,642 | 23,478 | 20,922 | 24,093 | |||||||
Fuel products: | |||||||||||
Gasoline | 17,758 | 23,245 | 18,769 | 23,924 | |||||||
Diesel | 26,104 | 28,233 | 26,001 | 29,349 | |||||||
Jet fuel | 2,905 | 5,517 | 3,355 | 4,081 | |||||||
Asphalt, heavy fuel oils and other | 14,820 | 21,484 | 15,016 | 20,413 | |||||||
Total | 61,587 | 78,479 | 63,141 | 77,767 | |||||||
Total facility production (3) | 80,229 | 101,957 | 84,063 | 101,860 | |||||||
(1) | Total sales volume includes sales from the production at the Partnership's 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in the Partnership's fuel products segment sales. |
The decrease in total sales volume for the three and six months ended June 30, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery, the terminated third-party naphthenic lubricating oil production arrangement. | |
(2) | Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
The decrease in total feedstock runs for the three and six months ended June 30, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery, the terminated third-party naphthenic lubricating oil production arrangement, and softened demanded due to the COVID-19 pandemic. | |
(3) | Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
The change in total facility production for the three and six months ended June 30, 2020, as compared to the same period in 2019, is due primarily to the items discussed above. | |
(4) | Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. |
Webcast Information
A conference call is scheduled for 9:30 a.m. ET on August 6, 2020 to discuss the financial and operational results for the second quarter of 2020. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the conference ID 4164316. 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) 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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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 the ongoing novel coronavirus ("COVID-19") pandemic on our business and operations, (ii) the demand for refined petroleum products in markets we serve; (iii) our expectation regarding our business outlook and cash flows, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, and (v) our ability to meet our financial commitments, debt service obligations, 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 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 acquisitions or dispositions. 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 our actual results to differ materially from those in the forward-looking statements are those described in (i) Part I, Item 1A "Risk Factors" and Part II, Item 7A "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and (ii) Part I, Item 3 "Quantitative and Qualitative Disclosures About Market Risk" and Part II, Item 1A "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.
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 the other cautionary statements in our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
We have based our forward-looking statements on our current expectations, estimates and projections about our business and industry. 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.
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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
During the first quarter of 2020, we changed how we calculate Adjusted EBITDA, which is used by management for evaluating performance, allocating resources and managing our business. The revised calculation of Adjusted EBITDA now excludes the impact of LCM inventory adjustments and the liquidation of inventory layers calculated using the last-in, first-out ("LIFO") method, which were previously included. This revised calculation better reflects the performance of our business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change. We previously also presented Adjusted EBITDA (excluding LCM/LIFO), which is consistent with our revised definition of Adjusted EBITDA.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) LCM inventory adjustments; and (i) the impact of liquidation of inventory layers calculated using the LIFO method.
Adjusted net income (loss) per unit: We define Adjusted net income (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Specialty products segment Adjusted gross profit: We define Specialty products segment Adjusted gross profit for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of inventory layers calculated using the LIFO method.
Fuel products segment Adjusted gross profit: We define Fuel products segment Adjusted gross profit for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of inventory layers calculated using the LIFO method.
Further, management and various investors use the ratio of Net debt (defined as total debt less cash) to Adjusted EBITDA, or "net debt leverage," as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. The metric "total debt less cash" includes borrowed long-term debt, letters of credit, and capital lease obligations, less cash.
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 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"); our 7.75% senior notes due April 15, 2023, that were issued in March 2015 (the "2023 Notes"), and our 11.00% senior notes due April 15, 2025, that were issued in October 2019 (the "2025 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 2022 Notes, 2023 Notes and 2025 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit 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, Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit and segment Adjusted gross profit may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit and segment Adjusted gross profit in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; and segment Adjusted gross profit to segment gross profit, our most directly comparable GAAP financial performance measure.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales | $ | 453.7 | $ | 896.9 | $ | 1,146.3 | $ | 1,748.2 | |||||||
Cost of sales | 364.4 | 789.8 | 1,002.7 | 1,505.1 | |||||||||||
Gross profit | 89.3 | 107.1 | 143.6 | 243.1 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 12.6 | 14.3 | 25.9 | 27.6 | |||||||||||
General and administrative | 26.8 | 37.8 | 47.0 | 72.7 | |||||||||||
Transportation | 24.8 | 31.6 | 55.6 | 67.5 | |||||||||||
(Benefit) expense for taxes other than income taxes | (2.7) | 4.7 | 2.3 | 9.8 | |||||||||||
Loss on impairment and disposal of assets | 0.7 | 16.2 | 6.7 | 27.9 | |||||||||||
Other operating (income) expense | 4.2 | (2.2) | 7.2 | (0.9) | |||||||||||
Operating income (loss) | 22.9 | 4.7 | (1.1) | 38.5 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (30.6) | (33.1) | (59.9) | (65.4) | |||||||||||
Gain on debt extinguishment | — | 0.3 | — | 0.7 | |||||||||||
Gain on derivative instruments | 11.3 | 10.3 | 49.8 | 19.4 | |||||||||||
Other | 0.2 | 1.3 | 1.1 | 6.6 | |||||||||||
Total other expense | (19.1) | (21.2) | (9.0) | (38.7) | |||||||||||
Net income (loss) before income taxes | 3.8 | (16.5) | (10.1) | (0.2) | |||||||||||
Income tax expense | 0.2 | 0.3 | 0.7 | 0.2 | |||||||||||
Net income (loss) | $ | 3.6 | $ | (16.8) | $ | (10.8) | $ | (0.4) | |||||||
Allocation of net income (loss): | |||||||||||||||
Net income (loss) | $ | 3.6 | $ | (16.8) | $ | (10.8) | $ | (0.4) | |||||||
Less: | |||||||||||||||
General partner's interest in net income (loss) | 0.1 | (0.3) | (0.2) | — | |||||||||||
Net income (loss) available to limited partners | $ | 3.5 | $ | (16.5) | $ | (10.6) | $ | (0.4) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic | 78,664,183 | 78,212,837 | 78,532,405 | 78,111,857 | |||||||||||
Diluted | 78,678,970 | 78,212,837 | 78,532,405 | 78,111,857 | |||||||||||
Limited partners' interest basic net income (loss) per unit: | |||||||||||||||
Limited partners' interest | $ | 0.05 | $ | (0.21) | $ | (0.13) | $ | — | |||||||
Limited partners' interest diluted net income (loss) per unit: | |||||||||||||||
Limited partners' interest | $ | 0.05 | $ | (0.21) | $ | (0.13) | $ | — | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||
June 30, 2020 | December 31, 2019 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 105.4 | $ | 19.1 | |||||||
Accounts receivable, net | 141.7 | 175.0 | |||||||||
Other | 16.3 | 13.5 | |||||||||
158.0 | 188.5 | ||||||||||
Inventories | 240.4 | 292.6 | |||||||||
Derivative assets | 19.7 | 0.9 | |||||||||
Prepaid expenses and other current assets | 13.2 | 11.0 | |||||||||
Total current assets | 536.7 | 512.1 | |||||||||
Property, plant and equipment, net | 949.3 | 973.5 | |||||||||
Goodwill | 172.5 | 171.4 | |||||||||
Other intangible assets, net | 64.8 | 71.2 | |||||||||
Operating lease right-of-use assets | 63.1 | 93.1 | |||||||||
Other noncurrent assets, net | 35.1 | 36.5 | |||||||||
Total assets | $ | 1,821.5 | $ | 1,857.8 | |||||||
LIABILITIES AND PARTNERS' CAPITAL | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 161.1 | $ | 230.2 | |||||||
Accrued interest payable | 31.1 | 32.0 | |||||||||
Accrued salaries, wages and benefits | 25.4 | 35.7 | |||||||||
Other taxes payable | 11.4 | 11.8 | |||||||||
Obligations under inventory financing agreements | 80.1 | 134.3 | |||||||||
Other current liabilities | 85.4 | 58.6 | |||||||||
Current portion of operating lease liabilities | 36.3 | 60.6 | |||||||||
Current portion of long-term debt | 2.1 | 1.8 | |||||||||
Total current liabilities | 432.9 | 565.0 | |||||||||
Pension and postretirement benefit obligations | 7.5 | 7.9 | |||||||||
Other long-term liabilities | 20.0 | 20.8 | |||||||||
Long-term operating lease liabilities | 27.5 | 33.0 | |||||||||
Long-term debt, less current portion | 1,322.7 | 1,209.5 | |||||||||
Total liabilities | 1,810.6 | 1,836.2 | |||||||||
Commitments and contingencies | |||||||||||
Partners' capital: | |||||||||||
Limited partners' interest | 9.9 | 20.2 | |||||||||
General partner's interest | 11.8 | 12.0 | |||||||||
Accumulated other comprehensive loss | (10.8 | (10.6 | |||||||||
Total partners' capital | 10.9 | 21.6 | |||||||||
Total liabilities and partners' capital | $ | 1,821.5 | $ | 1,857.8 | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Operating activities | |||||||
Net loss | $ | (10.8) | $ | (0.4) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 52.6 | 55.2 | |||||
Amortization of turnaround costs | 8.7 | 10.4 | |||||
Non-cash interest expense | 3.1 | 3.5 | |||||
Gain on debt extinguishments | — | (0.7) | |||||
Unrealized (gain) loss on derivative instruments | (30.4) | 14.8 | |||||
Loss on impairment and disposal of assets | 6.7 | 27.9 | |||||
Operating lease expense | 32.6 | 37.8 | |||||
Operating lease payments | (32.4) | (37.4) | |||||
Equity-based compensation | 0.6 | 4.6 | |||||
Lower of cost or market inventory adjustment | 34.2 | (41.5) | |||||
Other non-cash activities | 1.7 | (3.6) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 27.7 | (66.6) | |||||
Inventories | 18.1 | 40.5 | |||||
Prepaid expenses and other current assets | 1.8 | 6.0 | |||||
Derivative activity | (0.3) | (0.3) | |||||
Turnaround costs | (16.1) | (6.4) | |||||
Other assets | — | 0.1 | |||||
Accounts payable | (55.0) | 42.9 | |||||
Accrued interest payable | (1.4) | (0.5) | |||||
Accrued salaries, wages and benefits | (10.1) | (3.0) | |||||
Other taxes payable | (0.4) | 2.7 | |||||
Other liabilities | 19.8 | 3.6 | |||||
Pension and postretirement benefit obligations | (0.3) | — | |||||
Net cash provided by operating activities | $ | 50.4 | $ | 89.6 | |||
Investing activities | |||||||
Additions to property, plant and equipment | (28.4) | (17.1) | |||||
Acquisition of business, net of cash acquired | (3.3) | — | |||||
Proceeds from sale of unconsolidated affiliate | — | 5.0 | |||||
Proceeds from sale of property, plant and equipment | — | 3.7 | |||||
Net cash provided by discontinued investing activities | 0.9 | 5.0 | |||||
Net cash (used in) investing activities | $ | (30.8) | $ | (3.4) | |||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 672.7 | — | |||||
Repayments of borrowings — revolving credit facility | (562.4) | — | |||||
Repayments of borrowings — senior notes | — | (88.6) | |||||
Payments on finance lease obligations | (0.2) | (0.7) | |||||
Proceeds from inventory financing | 399.3 | 569.7 | |||||
Payments on inventory financing | (441.4) | (547.7) | |||||
Proceeds from other financing obligations | 31.4 | — | |||||
Payments on other financing obligations | (32.7) | (1.2) | |||||
Contributions from Calumet GP, LLC | — | 0.1 | |||||
Net cash provided by (used in) financing activities | $ | 66.7 | $ | (68.4) | |||
Net increase (decrease) in cash and cash equivalents | $ | 86.3 | $ | 17.8 | |||
Cash and cash equivalents at beginning of period | 19.1 | 155.7 | |||||
Cash and cash equivalents at end of period | $ | 105.4 | $ | 173.5 | |||
Supplemental disclosure of non-cash investing activities | |||||||
Non-cash property, plant and equipment additions | $ | 4.3 | $ | 5.6 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | (Unaudited) | ||||||||||||||
Net income (loss) | $ | 3.6 | $ | (16.8) | $ | (10.8) | $ | (0.4) | |||||||
Add: | |||||||||||||||
Interest expense | 30.6 | 33.1 | 59.9 | 65.4 | |||||||||||
Depreciation and amortization | 26.2 | 27.0 | 52.6 | 55.2 | |||||||||||
Income tax expense | 0.2 | 0.3 | 0.7 | 0.2 | |||||||||||
EBITDA | $ | 60.6 | $ | 43.6 | $ | 102.4 | $ | 120.4 | |||||||
Add: | |||||||||||||||
LCM / LIFO (gain) loss | $ | (32.1) | $ | (2.6) | $ | 34.4 | $ | (40.6) | |||||||
Unrealized (gain) loss on derivative instruments | 1.2 | 12.2 | (30.4) | 14.8 | |||||||||||
Amortization of turnaround costs | 3.6 | 5.6 | 8.7 | 10.4 | |||||||||||
Gain from debt extinguishment | — | (0.3) | — | (0.7) | |||||||||||
Loss on impairment and disposal of assets | 0.7 | 16.2 | 6.7 | 27.9 | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | — | (1.2) | |||||||||||
Equity-based compensation and other items | 7.0 | 2.3 | 4.1 | 5.7 | |||||||||||
Other non-recurring income | — | — | (1.2) | — | |||||||||||
Adjusted EBITDA | $ | 41.0 | $ | 77.0 | $ | 124.7 | $ | 136.7 | |||||||
Less: | |||||||||||||||
Replacement and environmental capital expenditures (1) | $ | 5.1 | $ | 7.4 | $ | 12.3 | $ | 13.6 | |||||||
Cash interest expense (2) | 29.0 | 31.5 | 56.8 | 61.9 | |||||||||||
Turnaround costs | 6.3 | 4.7 | 16.1 | 6.4 | |||||||||||
Gain from unconsolidated affiliates | — | — | — | 3.8 | |||||||||||
Income tax expense | 0.2 | 0.3 | 0.7 | 0.2 | |||||||||||
Distributable Cash Flow | $ | 0.4 | $ | 33.1 | $ | 38.8 | $ | 50.8 | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
Six Months Ended June 30, | |||||||
2020 | 2019 | ||||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by operating activities: | (Unaudited) | ||||||
Distributable Cash Flow | $ | 38.8 | $ | 50.8 | |||
Add: | |||||||
Replacement and environmental capital expenditures (1) | 12.3 | 13.6 | |||||
Cash interest expense (2) | 56.8 | 61.9 | |||||
Turnaround costs | 16.1 | 6.4 | |||||
Gain from unconsolidated affiliates | — | 3.8 | |||||
Income tax expense | 0.7 | 0.2 | |||||
Adjusted EBITDA | $ | 124.7 | $ | 136.7 | |||
Less: | |||||||
LCM / LIFO (gain) loss | $ | 34.4 | $ | (40.6) | |||
Unrealized (gain) loss on derivative instruments | (30.4) | 14.8 | |||||
Amortization of turnaround costs | 8.7 | 10.4 | |||||
Gain on debt extinguishment | — | (0.7) | |||||
Loss on impairment and disposal of assets | 6.7 | 27.9 | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Equity-based compensation and other items | 4.1 | 5.7 | |||||
Other non-recurring income | (1.2) | — | |||||
EBITDA | $ | 102.4 | $ | 120.4 | |||
Add: | |||||||
Unrealized (gain) loss on derivative instruments | $ | (30.4) | $ | 14.8 | |||
Cash interest expense (2) | (56.8) | (61.9) | |||||
Other non-recurring income | (1.2) | — | |||||
Equity-based compensation | 0.6 | 4.6 | |||||
Lower of cost or market inventory adjustment | 34.2 | (41.5) | |||||
Gain from unconsolidated affiliates | — | (3.8) | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Amortization of turnaround costs | 8.7 | 10.4 | |||||
Gain on debt extinguishment | — | (0.7) | |||||
Operating lease expense | 32.6 | 37.8 | |||||
Operating lease payments | (32.4) | (37.4) | |||||
Loss on impairment and disposal of assets | 6.7 | 27.9 | |||||
Income tax expense | (0.7) | (0.2) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 27.7 | (66.6) | |||||
Inventories | 18.1 | 40.5 | |||||
Other current assets | 1.8 | 6.0 | |||||
Derivative activity | (0.3) | (0.3) | |||||
Turnaround costs | (16.1) | (6.4) | |||||
Other assets | — | 0.1 | |||||
Accounts payable | (55.0) | 42.9 | |||||
Accrued interest payable | (1.4) | (0.5) | |||||
Other liabilities | 9.3 | 3.3 | |||||
Other | 2.6 | 1.4 | |||||
Net cash provided by operating activities | $ | 50.4 | $ | 89.6 | |||
(1) | 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. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(In millions) | |||||||||||||||
Reconciliation of Adjusted EBITDA to EBITDA and Net income (loss): | |||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||
Specialty products Adjusted EBITDA | $ | 56.1 | $ | 55.1 | $ | 120.6 | $ | 113.5 | |||||||
Fuel products Adjusted EBITDA | 1.9 | 50.2 | 41.1 | 76.1 | |||||||||||
Corporate Adjusted EBITDA | (17.0) | (28.3) | (37.0) | (52.9) | |||||||||||
Total Adjusted EBITDA | $ | 41.0 | $ | 77.0 | $ | 124.7 | $ | 136.7 | |||||||
Less: | |||||||||||||||
LCM / LIFO (gain) loss | $ | (32.1) | $ | (2.6) | $ | 34.4 | $ | (40.6) | |||||||
Unrealized (gain) loss on derivative instruments | 1.2 | 12.2 | (30.4) | 14.8 | |||||||||||
Amortization of turnaround costs | 3.6 | 5.6 | 8.7 | 10.4 | |||||||||||
Gain on debt extinguishment | — | (0.3) | — | (0.7) | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | — | (1.2) | |||||||||||
Loss on impairment and disposal of assets | 0.7 | 16.2 | 6.7 | 27.9 | |||||||||||
Equity-based compensation and other items | 7.0 | 2.3 | 4.1 | 5.7 | |||||||||||
Other non-recurring income | — | — | (1.2) | — | |||||||||||
EBITDA | $ | 60.6 | $ | 43.6 | $ | 102.4 | $ | 120.4 | |||||||
Less: | |||||||||||||||
Interest expense | $ | 30.6 | $ | 33.1 | $ | 59.9 | $ | 65.4 | |||||||
Depreciation and amortization | 26.2 | 27.0 | 52.6 | 55.2 | |||||||||||
Income tax (benefit) expense | 0.2 | 0.3 | 0.7 | 0.2 | |||||||||||
Net income (loss) | $ | 3.6 | $ | (16.8) | $ | (10.8) | $ | (0.4) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Segment Metrics Excluding LCM/LIFO: | (Unaudited) | ||||||||||||||
Specialty products segment gross profit | $ | 84.2 | $ | 82.0 | $ | 154.4 | $ | 174.9 | |||||||
LCM inventory adjustments | (4.2) | 0.4 | 18.0 | (6.2) | |||||||||||
LIFO inventory layer adjustments | — | — | — | 0.9 | |||||||||||
Specialty products segment Adjusted gross profit | $ | 80.0 | $ | 82.4 | $ | 172.4 | $ | 169.6 | |||||||
Fuel products segment gross profit | $ | 5.1 | $ | 25.1 | $ | (10.8) | $ | 68.2 | |||||||
LCM inventory adjustments | (27.9) | (3.0) | 16.4 | (35.3) | |||||||||||
Fuel products segment Adjusted gross profit | $ | (22.8) | $ | 22.1 | $ | 5.6 | $ | 32.9 | |||||||
Reported Specialty products segment gross profit per barrel | $ | 46.86 | $ | 36.59 | $ | 38.34 | $ | 37.36 | |||||||
LCM/LIFO inventory adjustments per barrel | (2.34) | 0.18 | 4.47 | (1.13) | |||||||||||
Specialty products segment Adjusted gross profit per barrel | $ | 44.52 | $ | 36.77 | $ | 42.81 | $ | 36.23 | |||||||
Reported Fuel products segment gross profit per barrel | $ | 0.83 | $ | 3.52 | $ | (0.88) | $ | 4.70 | |||||||
LCM/LIFO inventory adjustments per barrel | (4.52) | (0.42) | 1.33 | (2.43) | |||||||||||
Fuel products segment Adjusted gross profit per barrel | $ | (3.69) | $ | 3.10 | $ | 0.45 | $ | 2.27 | |||||||
Specialty products Adjusted EBITDA | $ | 56.1 | $ | 55.1 | $ | 120.6 | $ | 113.5 | |||||||
Specialty products sales | 232.7 | 344.4 | 559.6 | 696.6 | |||||||||||
Specialty products Adjusted EBITDA margin | 24.1 | % | 16.0 | % | 21.6 | % | 16.3 | % | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended June 30, | Six months ended June 30, 2020 | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | (Unaudited) | ||||||||||||||
Net income (loss) | $ | 3.6 | $ | (16.8) | $ | (10.8) | $ | (0.4) | |||||||
Add: | |||||||||||||||
LCM inventory adjustments | (32.1) | (2.6) | 34.4 | (41.5) | |||||||||||
LIFO inventory layer adjustments | — | — | — | 0.9 | |||||||||||
Unrealized (gain) loss on derivative instruments | 1.2 | 12.2 | (30.4) | 14.8 | |||||||||||
Gain from debt extinguishment | — | (0.3) | — | (0.7) | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | — | (1.2) | |||||||||||
Loss on impairment and disposal of assets | 0.7 | 16.2 | 6.7 | 27.9 | |||||||||||
Other non-recurring income | — | — | (1.2) | — | |||||||||||
Equity based compensation and other non-cash items | 7.0 | 2.3 | 4.1 | 5.7 | |||||||||||
Adjusted net income (loss) | $ | (19.6) | $ | 11.0 | $ | 2.8 | $ | 5.5 | |||||||
Adjusted net income (loss) per unit | $ | (0.25) | $ | 0.14 | $ | 0.04 | $ | 0.07 | |||||||
Average limited partner units - diluted | 78,678,970 | 78,212,837 | 78,532,405 | 78,111,857 | |||||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
June 30, | |||||||
2020 | 2019 | ||||||
Reconciliation of Net Debt / LTM Adjusted EBITDA | (Unaudited) | ||||||
Revolving Credit Facility | $ | 110.3 | $ | — | |||
6.50% Senior Notes due 2021 | — | 810.2 | |||||
7.625% Senior Notes due 2022 | 350.0 | 350.0 | |||||
7.75% Senior Notes due 2023 | 325.0 | 325.0 | |||||
11.00% Senior Notes due 2025 | 550.0 | — | |||||
Finance Leases | 3.9 | 3.0 | |||||
Other | 3.0 | 4.5 | |||||
Total Debt | $ | 1,342.2 | $ | 1,492.7 | |||
Less Cash | $ | 105.4 | $ | 173.5 | |||
Net Debt
| $ | 1,236.8 | $ | 1,319.2 | |||
LTM Adjusted EBITDA
| $ | 250.8 | $ | 300.7 | |||
Net Debt / LTM Adjusted EBITDA
| 4.9 | x | 4.4 | x | |||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-second-quarter-2020-results-301107548.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/6/2020Calumet Specialty Products Partners, L.P. Announces Settlement of its Exchange Offer and Consent Solicitation
Source: PR Newswire
INDIANAPOLIS, Aug. 5, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet" or the "Company") (NASDAQ: CLMT) and Calumet Finance Corp. ("Finance Corp." and, together with the Company, the "Issuers") announced the final settlement of the previously announced (i) exchange offer (the "Exchange Offer") to certain holders of their 7.625% Senior Notes due 2022 (the "2022 Notes") to exchange 2022 Notes for newly issued 9.25% Senior Secured First Lien Notes due 2024 (the "New Notes") and (ii) solicitation of consents (the "Consents") from holders of their outstanding 11.00% Senior Notes due 2025 (the "2025 Notes") to allow the Issuers to consummate the Exchange Offer.
On August 5, 2020, the Issuers accepted tenders from holders of approximately $200 million in aggregate principal amount of 2022 Notes for consideration consisting of $200 million in aggregate principal amount of New Notes. Following the settlement of the Exchange Offer, $149,996,000 aggregate principal amount of the 2022 Notes remain outstanding. Additionally, the Issuers executed the first supplement to the indenture governing the 2025 Notes and made a cash payment of $2.50 per $1,000 principal amount of 2025 Notes for which Consents were validly delivered (and not validly revoked).
The New Notes and the Exchange Offer have not been and will not be registered with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offer was not made to holders of 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Barclays acted as the sole dealer manager in the Exchange Offer.
Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, New Jersey, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The statements discussed in this press release that are not purely historical data are forward-looking statements. 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 materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the SEC, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-settlement-of-its-exchange-offer-and-consent-solicitation-301106914.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/5/2020Calumet Specialty Products Partners, L.P. Announces Expiration and Final Results of its Exchange Offer and Consent Solicitation
Source: PR Newswire
INDIANAPOLIS, Aug. 3, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet" or the "Company") (NASDAQ: CLMT) and Calumet Finance Corp. ("Finance Corp." and, together with the Company, the "Issuers") today announced the expiration and final results of their (i) private exchange offer (the "Exchange Offer") to certain holders of their 7.625% Senior Notes due 2022 (the "2022 Notes") to exchange 2022 Notes for newly issued 9.25% Senior Secured First Lien Notes due 2024 (the "New Notes") and (ii) solicitation (the "Consent Solicitation") of consents (the "Consents") from holders of their outstanding 11.00% Senior Notes due 2025 (the "2025 Notes") to allow the Issuers to consummate the Exchange Offer.
The Exchange Offer and Consent Solicitation expired at 11:59 p.m., New York City time, on July 31, 2020 (such time and date, the "Expiration Time"). As of the Expiration Time, according to information provided to the Company by D.F. King & Co. Inc., (i) approximately $308.6 million in aggregate principal amount of the 2022 Notes, representing approximately 88.2% of the total outstanding principal amount of the 2022 Notes, had been validly tendered (and not validly withdrawn), and (ii) holders of approximately $533.6 million in aggregate principal amount of the 2025 Notes, representing approximately 97.0% of the outstanding principal amount of 2025 Notes, had validly delivered (and not validly revoked) their Consents. As of the Expiration Time, all conditions to the Exchange Offer and Consent Solicitation were satisfied or waived by the Issuers.
The Issuers expect the settlement of the Exchange Offer and Consent Solicitation to occur on or about August 5, 2020. In connection with the settlement of the Exchange Offer, the Issuers expect to accept for exchange approximately $200 million in aggregate principal amount of 2022 Notes and to issue $200 million in aggregate principal amount of New Notes. In connection with the settlement of the Consent Solicitation, the Issuers expect to execute the first supplement to the indenture governing the 2025 Notes and to make the cash payment of $2.50 per $1,000 principal amount of 2025 Notes for which Consents were validly delivered (and not validly revoked).
The New Notes and the Exchange Offer have not been and will not be registered with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "Securities Act"), or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offer was not made to holders of 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Barclays acted as the sole dealer manager in the Exchange Offer.
Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, New Jersey, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 the completion of the Exchange Offer and Consent Solicitation and the participation by certain holders of 2022 Notes and 2025 Notes. 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 materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the SEC, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-expiration-and-final-results-of-its-exchange-offer-and-consent-solicitation-301104434.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/3/20207/30/2020 - Calumet Specialty Products Partners, L.P. to Release Second Quarter 2020 Results on August 6
Calumet Specialty Products Partners, L.P. to Release Second Quarter 2020 Results on August 6
Source: PR Newswire
INDIANAPOLIS, July 30, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it plans to report results for the fiscal second quarter 2020 on August 6, 2020. A conference call to discuss the financial and operational results is scheduled for August 6, 2020 at 9:30 AM ET.
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 https://edge.media-server.com/mmc/p/c3cyfoxg. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the conference ID 4164316. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, New Jersey, Texas, and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-second-quarter-2020-results-on-august-6-301103577.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/30/2020Calumet Specialty Products Partners, L.P. Announces Details Surrounding its Exchange Offer and Consent Solicitation
Source: PR Newswire
INDIANAPOLIS, July 24, 2020 /PRNewswire/ -- On July 20, 2020, Calumet Specialty Products Partners, L.P. ("Calumet" or the "Company") (NASDAQ: CLMT) and Calumet Finance Corp. ("Finance Corp." and, together with the Company, the "Issuers") announced the early results of their (i) private exchange offer (the "Exchange Offer") to certain holders of their 7.625% Senior Notes due 2022 (the "2022 Notes") to exchange 2022 Notes for newly issued 9.25% Senior Secured First Lien Notes due 2024 (the "New Notes") and (ii) solicitation (the "Consent Solicitation") of consents (the "Consents") from holders of their outstanding 11.00% Senior Notes due 2025 (the "2025 Notes") to allow the Issuers to consummate the Exchange Offer. The Exchange Offer and Consent Solicitation will expire at 11:59 p.m., New York City time, on July 31, 2020, unless extended or earlier terminated by the Issuers in their sole discretion.
As previously announced, the Issuers entered into a Support Agreement, dated July 6, 2020 with holders (the "Supporting Holders") of approximately 55.9% of the aggregate principal amount of the outstanding 2022 Notes and 65.8% of the aggregate principal amount of the outstanding 2025 Notes. The Supporting Holders have tendered their 2022 Notes and are committed to deliver their Consents on the 2025 Notes prior to expiration of the Consent Solicitation. With the Consents from the Supporting Holders representing approximately 65.8% of the aggregate principal amount of the outstanding 2025 Notes and the other Consents separately submitted to and accounted for by D.F. King & Co. Inc., the Company currently expects total Consents to be delivered in the Consent Solicitation of approximately 65.9% of the aggregate principal amount of the outstanding 2025 Notes. As a result, the Company expects to receive Consents required to amend the indenture governing the 2025 Notes and close the Exchange Offer on the timeline disclosed in the offering memorandum related to the Exchange Offer.
Questions regarding the Consent Solicitation may be directed to D.F. King & Co. Inc. by phone at (800) 515-4479 (toll free) or (212) 269-5550 (collect) or by e-mail at calumet@dfking.com. Requests for copies of the offering memorandum related to the Exchange Offer and consent solicitation statement related to the Consent Solicitation may be directed to D.F. King & Co. Inc. at (800) 515-4479 (toll free) or by email to calumet@dfking.com.
The New Notes and the Exchange Offer have not been and will not be registered with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act, or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offer is not being made to holders of 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Barclays is acting as the sole dealer manager in the Exchange Offer.
Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, New Jersey, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 timing of the Exchange Offer and the Consent Solicitation and the expected participation by certain holders of 2022 Notes and 2025 Notes, (ii) the effect, impact, potential duration or other implications of the ongoing novel coronavirus pandemic and global crude oil production levels on our business and operations, (iii) our expectation regarding our business outlook and cash flows, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, and (v) our ability to meet our financial commitments, debt service obligations, 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. 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. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the SEC, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-details-surrounding-its-exchange-offer-and-consent-solicitation-301099304.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/24/2020Calumet Specialty Products Partners, L.P. Announces Early Results for its Exchange Offer and Consent Solicitation
Source: PR Newswire
INDIANAPOLIS, July 20, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet" or the "Company") (NASDAQ: CLMT) and Calumet Finance Corp. ("Finance Corp." and, together with the Company, the "Issuers") today announced the early results of the previously announced private exchange offer (the "Exchange Offer") to each Eligible Holder (as defined below) of their 7.625% Senior Notes due 2022 (the "2022 Notes") to exchange up to $200 million aggregate principal amount of 2022 Notes for up to $200 million aggregate principal amount (the "Maximum Exchange Amount") of newly issued 9.25% Senior Secured First Lien Notes due 2024 (the "New Notes") upon the terms and subject to the conditions set forth in the confidential offering memorandum, dated July 6, 2020 (the "Offering Memorandum").
The table below sets forth the early results of the Exchange Offer, according to information provided by the tender agent, as of 5:00 p.m., New York City time, on July 17, 2020 (such time and date, the "Early Tender Time"):
Title of Notes | CUSIP No. / ISIN | Aggregate | Principal Amount | Early Exchange |
7.625% Senior | 131477AL5 / US131477AL51 | $350,000,000 | $308,529,000 | $1,000 principal |
(1) | Total principal amount of New Notes for each $1,000 principal amount of 2022 Notes tendered and accepted for exchange. | |||
The Issuers will accept 2022 Notes validly tendered by Eligible Holders (and not validly withdrawn) prior to the Expiration Time (as defined below) up to the Maximum Exchange Amount. Based on the principal amount of 2022 Notes validly tendered (and not validly withdrawn) prior to the Early Tender Time, the Exchange Offer is oversubscribed. 2022 Notes validly tendered (and not validly withdrawn) prior to the Early Tender Time will have no priority in acceptance over 2022 Notes validly tendered (and not validly withdrawn) after the Early Tender Time. The Issuers will accept 2022 Notes on a prorated basis.
Subject to the tender acceptance and proration procedures described in the Offering Memorandum promptly after the Expiration Time (such date, the "Settlement Date"), (i) Eligible Holders tendering their 2022 Notes at or prior to the Early Tender Time will be eligible to receive $1,000 principal amount of New Notes for each $1,000 principal amount of 2022 Notes tendered for exchange (the "Early Exchange Consideration") and (ii) Eligible Holders tendering their 2022 Notes after the Early Tender Time and at or prior to 11:59 p.m., New York City time, on July 31, 2020, unless extended (such time and date as it may be extended, the "Expiration Time"), will be eligible to receive $950 principal amount of New Notes for each $1,000 principal amount of 2022 Notes accepted for exchange, in each case, plus accrued and unpaid interest on the 2022 Notes accepted for exchange to, but not including, the Settlement Date. The Issuers currently expect the Settlement Date to be August 5, 2020.
As of 5:00 p.m., New York City time, on July 17, 2020, an aggregate of $500,000 principal amount of the 2025 Notes (as defined below), representing 0.09% of the outstanding 2025 Notes, validly delivered consents ("Consents") in the Issuers' previously announced consent solicitation (the "Consent Solicitation") to solicit Consents from holders of their outstanding 11.00% Senior Notes due 2025 (the "2025 Notes") to certain proposed amendments to the indenture governing the 2025 Notes (the "2025 Notes Indenture"), to allow for the Issuers to consummate the Exchange Offer, upon the terms and subject to the conditions set forth in the confidential consent solicitation statement, dated July 6, 2020 (the "Consent Solicitation Statement"). As a result, the Issuers have not received the Consents necessary to amend and supplement the 2025 Notes Indenture as of 5:00 p.m., New York City time, on July 17, 2020.
Holders of the 2025 Notes who validly deliver (and do not validly revoke) Consents at or prior to 11:59 p.m., New York City time, on July 31, 2020, unless extended (each such holder, a "Consenting Holder"), will receive cash consideration equal to $2.50 per $1,000 in principal amount of 2025 Notes (the "Consent Fee") for which such Consenting Holders validly deliver (and do not validly revoke) a Consent. The payment of the Consent Fee is subject to the terms and conditions of the Consent Solicitation.
Following consummation of the Exchange Offer and the Consent Solicitation, the 2022 Notes held by holders whose 2022 Notes are not accepted for exchange in the Exchange Offer will rank effectively junior to the New Notes to the extent of the value of the collateral securing the New Notes. The Exchange Offer and the Consent Solicitation may be terminated, withdrawn, amended or extended at any time and for any reason.
The Exchange Offer and Consent Solicitation will expire at the Expiration Time, unless extended or earlier terminated by the Issuers in their sole discretion. The Exchange Offer and Consent Solicitation are subject to the satisfaction or waiver of certain conditions as described in the Offering Memorandum and Consent Solicitation Statement. The withdrawal deadline was 5:00 p.m., New York City time, on July 17, 2020. As a result, validly tendered 2022 Notes in the Exchange Offer and Consents that have been validly delivered in the Consent Solicitation may no longer be withdrawn or revoked, subject to applicable law.
The Exchange Offer will only be made, and the New Notes are only being offered and issued, to holders of 2022 Notes who are (a) reasonably believed to be "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), or (b) not "U.S. persons" as defined in Rule 902 under the Securities Act and are in compliance with Regulation S under the Securities Act (any such holder, an "Eligible Holder"). Only Eligible Holders who have completed and returned an eligibility letter are authorized to receive or review the Offering Memorandum or to participate in the Exchange Offer. Eligible Holders of the 2022 Notes who desire to obtain and complete an eligibility letter should contact the information agent and exchange agent, D.F. King & Co. Inc., at (800) 515-4479 (toll-free) or (212) 269-5550 (for banks and brokers), email calumet@dfking.com or at the website www.dfking.com/calumet.
Eligible Holders of the 2022 Notes and 2025 Notes are urged to carefully read the Offering Memorandum and the Consent Solicitation Statement, respectively, before making any decision with respect to the Exchange Offer or the Consent Solicitation, respectively. None of the Issuers, the dealer manager, the trustee with respect to the 2022 Notes, the 2025 Notes and the New Notes, the information and exchange agent, and information agent and tabulation agent or any affiliate of any of them makes any recommendation as to whether Eligible Holders of the 2022 Notes should exchange their 2022 Notes for New Notes in the Exchange Offer or whether holders of 2025 Notes should deliver Consents in the Consent Solicitation, and no one has been authorized by any of them to make such a recommendation. Eligible Holders must make their own decision as to whether to tender 2022 Notes and, if so, the principal amount of 2022 Notes to tender.
Questions regarding the Consent Solicitation Statement or the Consent Solicitation may be directed to D.F. King & Co. Inc. by phone at (800) 515-4479 (toll free) or (212) 269-5550 (collect) or by e-mail at calumet@dfking.com. Requests for copies of the Offering Memorandum and Consent Solicitation Statement may be directed to D.F. King & Co. Inc. at (800) 515-4479 (toll free) or by email to calumet@dfking.com.
The New Notes and the Exchange Offer have not been and will not be registered with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act, or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offer is not being made to Eligible Holders of 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Barclays is acting as the sole dealer manager in the Exchange Offer.
Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, New Jersey, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 timing of the Exchange Offer and the Consent Solicitation and the expected participation by certain holders of 2022 Notes and 2025 Notes, (ii) the effect, impact, potential duration or other implications of the ongoing novel coronavirus pandemic and global crude oil production levels on our business and operations, (iii) our expectation regarding our business outlook and cash flows, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, and (v) our ability to meet our financial commitments, debt service obligations, 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. 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. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the SEC, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-early-results-for-its-exchange-offer-and-consent-solicitation-301095925.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/20/2020Calumet Specialty Products Partners, L.P. Enters into Support Agreement and Announces Commencement of Exchange Offer for up to $200 Million of Outstanding 7.625% Senior Notes due 2022 and Consent Solicitation for Outstanding 11.00% Senior Notes due 2025
Source: PR Newswire
INDIANAPOLIS, July 6, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet" or the "Company") (NASDAQ: CLMT) and Calumet Finance Corp. ("Finance Corp." and, together with the Company, the "Issuers") today announced that, with the support of the holders of a majority of their 7.625% Senior Notes due 2022 (the "2022 Notes") and 2025 Notes (as defined below), they have commenced a private exchange offer (the "Exchange Offer") to each Eligible Holder (as defined below) of their 2022 Notes to exchange up to $200 million aggregate principal amount of 2022 Notes for up to $200 million aggregate principal amount (the "Maximum Exchange Amount") of newly issued 9.25% Senior Secured First Lien Notes due 2024 (the "New Notes"), upon the terms and subject to the conditions set forth in the confidential offering memorandum, dated July 6, 2020 (the "Offering Memorandum").
The Issuers have entered into a Support Agreement, dated July 6, 2020 (the "Support Agreement") with holders (the "Supporting Holders") of approximately 55.9% of the aggregate principal amount of outstanding 2022 Notes and 65.8% of the aggregate principal amount of outstanding 2025 Notes. Pursuant to the Support Agreement, the Supporting Holders have agreed to (i) validly tender their 2022 Notes in the Exchange Offer, (ii) deliver their Consents (as defined below) in connection with the Consent Solicitation (as defined below), (iii) not to withdraw or revoke any 2022 Notes tendered and any Consents delivered in the Exchange Offer and the Consent Solicitation, respectively, and (iv) cooperate with and support the Issuers' efforts to consummate the Exchange Offer and Consent Solicitation.
The following table sets forth the consideration to be offered to Eligible Holders of the 2022 Notes in the Exchange Offer:
Title of Notes | CUSIP No. / ISIN | Aggregate Principal | Early Exchange |
Base Exchange | ||||
7.625% Senior Notes due 2022 | 131477AL5 / US131477AL51
| $350,000,000 | $1,000 principal amount of New Notes | $950 principal amount of New Notes |
_________________ | |
(1) | Total principal amount of New Notes for each $1,000 principal amount of 2022 Notes tendered and accepted for exchange. |
The Issuers will accept 2022 Notes tendered by Eligible Holders (and not validly withdrawn) up to the Maximum Exchange Amount. To the extent 2022 Notes validly tendered (and not validly withdrawn) exceed the Maximum Exchange Amount, the Issuers will accept 2022 Notes on a prorated basis. 2022 Notes validly tendered (and not validly withdrawn) prior to the Early Tender Time (as defined below) will have no priority in acceptance over 2022 Notes validly tendered (and not validly withdrawn) after the Early Tender Time.
Subject to the tender acceptance and proration procedures described in the Offering Memorandum promptly after the Expiration Time (such date, the "Settlement Date"), (i) Eligible Holders tendering their 2022 Notes at or prior to 5:00 p.m., New York City time, on July 17, 2020, unless extended (such time and date as it may be extended, the "Early Tender Time") will be eligible to receive $1,000 principal amount of New Notes for each $1,000 principal amount of 2022 Notes tendered for exchange (the "Early Exchange Consideration") and (ii) Eligible Holders tendering their 2022 Notes after the Early Tender Time and at or prior to 11:59 p.m., New York City time, on July 31, 2020, unless extended (such time and date as it may be extended, the "Expiration Time"), will be eligible to receive $950 principal amount of New Notes for each $1,000 principal amount of 2022 Notes accepted for exchange (the "Base Exchange Consideration"), in each case, plus accrued and unpaid interest on the 2022 Notes accepted for exchange to, but not including, the Settlement Date. The Issuers currently expect the Settlement Date to be August 5, 2020.
In connection with the Exchange Offer, the Issuers have commenced a consent solicitation (the "Consent Solicitation") to solicit consents ("Consents") from holders of their outstanding 11.00% Senior Notes due 2025 (the "2025 Notes") to certain proposed amendments (the "Proposed Amendments") to the indenture governing the 2025 Notes (the "2025 Notes Indenture"), to allow for the Issuers to consummate the Exchange Offer, upon the terms and subject to the conditions set forth in the confidential consent solicitation statement, dated July 6, 2020 (the "Consent Solicitation Statement").
The Issuers must receive Consents from holders representing at least a majority of the outstanding principal amount of 2025 Notes to adopt the Proposed Amendments with respect to the 2025 Notes Indenture (the "Requisite Consents"). Upon receipt of the Requisite Consents to the Proposed Amendments, holders of the 2025 Notes who validly deliver (and do not validly revoke) Consents at or prior to 11:59 p.m., New York City time, on July 31, 2020, unless extended (each such holder, a "Consenting Holder"), will receive cash consideration equal to $2.50 per $1,000 in principal amount of 2025 Notes for which such Consenting Holders validly deliver (and do not validly revoke) a Consent. The payment of the Consent Fee is subject to the terms and conditions of the Consent Solicitation.
If the Issuers receive the Requisite Consents, the Proposed Amendments will be effected by a supplemental indenture to the 2025 Notes Indenture.
Following consummation of the Exchange Offer and the Consent Solicitation, the 2022 Notes held by holders whose 2022 Notes are not accepted for exchange in the Exchange Offer will rank effectively junior to the New Notes to the extent of the value of the collateral securing the New Notes. The 2025 Notes will remain outstanding and will continue to bear interest as provided in the 2025 Notes Indenture.
The Exchange Offer and the Consent Solicitation may be terminated, withdrawn, amended or extended at any time and for any reason. The Exchange Offer is not conditioned upon any minimum amount of 2022 Notes tendered or the receipt of the Requisite Consents to the Proposed Amendments.
Tenders of 2022 Notes in the Exchange Offer may be validly withdrawn, and delivery of Consents in the Consent Solicitation may be validly revoked, at any time prior to 5:00 p.m., New York City time, on July 17, 2020, unless extended (as it may be extended, the "Withdrawal Deadline"). 2022 Notes (including 2022 Notes tendered after the Withdrawal Deadline) may not be withdrawn from the Exchange Offer, and Consents delivered in respect of 2025 Notes (including Consents delivered after the Withdrawal Deadline) may not be revoked from the Consent Solicitation, after the Withdrawal Deadline, subject to applicable law.
The Exchange Offer will only be made, and the New Notes are only being offered and issued, to holders of 2022 Notes who are (a) reasonably believed to be "qualified institutional buyers" as defined in Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), or (b) not "U.S. persons" as defined in Rule 902 under the Securities Act and are in compliance with Regulation S under the Securities Act (any such holder, an "Eligible Holder"). Only Eligible Holders who have completed and returned an eligibility letter are authorized to receive or review the Offering Memorandum or to participate in the Exchange Offer. Eligible Holders of the 2022 Notes who desire to obtain and complete an eligibility letter should contact the information agent and exchange agent, D.F. King & Co. Inc., at (800) 515-4479 (toll-free) or (212) 269-5550 (for banks and brokers), email calumet@dfking.com or at the website www.dfking.com/calumet.
Eligible Holders of the 2022 Notes and 2025 Notes are urged to carefully read the Offering Memorandum and the Consent Solicitation Statement, respectively, before making any decision with respect to the Exchange Offer or the Consent Solicitation, respectively. None of the Issuers, the dealer manager, the trustee with respect to the 2022 Notes, the 2025 Notes and the New Notes, the information and exchange agent, and information agent and tabulation agent or any affiliate of any of them makes any recommendation as to whether Eligible Holders of the 2022 Notes should exchange their 2022 Notes for New Notes in the Exchange Offer or whether holders of 2025 Notes should deliver Consents in the Consent Solicitation, and no one has been authorized by any of them to make such a recommendation. Eligible Holders must make their own decision as to whether to tender 2022 Notes and, if so, the principal amount of 2022 Notes to tender.
Questions regarding the Consent Solicitation Statement or the Consent Solicitation may be directed to D.F. King & Co. Inc. by phone at (800) 515-4479 (toll free) or (212) 269-5550 (collect) or by e-mail at calumet@dfking.com. Requests for copies of the Offering Memorandum and Consent Solicitation Statement may be directed to D.F. King & Co. Inc. at (800) 515-4479 (toll free) or by email to calumet@dfking.com.
The New Notes and the Exchange Offer have not been and will not be registered with the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act, or any state or foreign securities laws. The New Notes may not be offered or sold in the United States or for the account or benefit of any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offer is not being made to Eligible Holders of 2022 Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to purchase or sell any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Barclays is acting as the sole dealer manager in the Exchange Offer.
Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, New Jersey, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 timing of the Exchange Offer and the Consent Solicitation and the expected participation by certain holders of 2022 Notes and 2025 Notes, (ii) the effect, impact, potential duration or other implications of the ongoing novel coronavirus pandemic and global crude oil production levels on our business and operations, (iii) our expectation regarding our business outlook and cash flows, (iv) our expectation regarding anticipated capital expenditures and strategic initiatives, and (v) our ability to meet our financial commitments, debt service obligations, 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. 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. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the SEC, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/6/2020Calumet Specialty Products Partners, L.P. Provides Liquidity Update
Source: PR Newswire
INDIANAPOLIS, July 6, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," the "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuels products, today provides updated information related to the Partnership's current liquidity position and select unaudited second quarter operating results, in an effort to provide increased transparency through the ongoing COVID-19 pandemic.
Liquidity & Cash Flow Update:
"Despite the economic disruption of the second quarter, our focus on aggressively managing what we can control allowed us to generate positive free cash flow and maintain sufficient liquidity to fund our business," said Steve Mawer, Chief Executive Officer of Calumet. "This is a tribute to our team and their determination to execute well and remain focused despite the personal challenges and uncertainties of the pandemic. We intend to continue to manage our business to generate positive cash flow from operations for the rest of the year through a continued focus on execution, managing both costs and working capital. Additionally, we are encouraged by the gradual improvement in demand that we observed later in the most recent quarter, and as we look forward, we maintain our cautious expectations that we will continue to see demand recovering in the third quarter."
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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 related to our anticipated operating cash flow for the second quarter, our intent to generate positive operating cash flow for the remainder of the year, our expectation regarding the recovery of demand in the third quarter and our overall business outlook. 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 expectations for future operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions or dispositions. 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: various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the COVID-19 pandemic, including the (i) continuation of a swift and material decline in the demand for fuels and other refined products over an uncertain period of time, (ii) uncertainty regarding the length of time it will take for the United States and the rest of the world to slow the spread of the COVID-19 virus to the point where applicable authorities are comfortable easing current restrictions on various commercial and economic activities (such restrictions are designed to protect public health but also have the effect of significantly reducing demand for fuels and other refined products), (iii) uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for specialty hydrocarbon products, fuels and other refined products and therefore the demand for our products, (iv) the refusal or inability of our customers or counterparties to perform their obligations under their contracts with us (including commercial contracts and other agreements), whether justified or not and whether due to financial constraints (reduced creditworthiness, liquidity issues or insolvency), market constraints, legal constraints (including governmental orders or guidance), the exercise of contractual or common law rights that allegedly excuse their performance (such as force majeure or similar claims) or other factors and (v) our inability to perform our obligations under our contracts, whether due to non-performance by third parties, including our customers or counterparties, market constraints, third-party constraints, legal constraints (including governmental orders or guidance), or other factors; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 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, including our latest Annual Report on Form 10-K and subsequent Quarterly Report on Form 10-Q.
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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-provides-liquidity-update-301088356.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/6/2020Calumet Specialty Products Partners, L.P. to attend Bank of America Merrill Lynch 2020 Energy Credit Conference
Source: PR Newswire
INDIANAPOLIS, June 2, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the Bank of America Merrill Lynch 2020 Energy Credit Conference on Wednesday, June 3, 2020. Management will provide an overview of the Company's business during a live webcast presentation at the Conference and will conduct one-on-one and group meetings with investors who are registered to attend the event. The webcast of the live presentation and the presentation slides can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-bank-of-america-merrill-lynch-2020-energy-credit-conference-301069735.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/2/2020Calumet Specialty Products Partners, L.P. Reports First Quarter 2020 Results
Source: PR Newswire
INDIANAPOLIS, May 7, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," the "Company," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the first quarter ended March 31, 2020, as follows:
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per unit data) | |||||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
Adjusted net income (loss) | $ | 22.3 | $ | (5.5) | |||
Net income (loss) per unit | $ | (0.18) | $ | 0.20 | |||
Adjusted net income (loss) per unit | $ | 0.28 | $ | (0.07) | |||
Adjusted EBITDA | $ | 83.7 | $ | 59.7 | |||
The Partnership's $14.4 million of Net loss and $0.18 Net loss per unit for the first quarter 2020 included a $66.3 million unfavorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments, a $6.0 million non-cash loss on impairment and disposal of assets and a $31.6 million unrealized hedging gain. Excluding these and other non-cash charges, Adjusted net income and Adjusted net income per unit were $22.3 million and $0.28, respectively. The Partnership's $83.7 million of Adjusted EBITDA for the first quarter 2020 excluded a $66.3 million unfavorable net impact related to the non-cash LCM inventory adjustments.
For detailed information on the non-GAAP measures presented in this release and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"Despite the slowing demand towards the end of the quarter, Calumet delivered another solid quarter and start to the year, as focused execution against our specialty-focused strategy and improved operations in our fuel products segment combined to deliver the strongest first quarter of Adjusted EBITDA since 2015, including net loss of $14.4 million and Adjusted EBITDA of $83.7 million," said Chief Executive Officer Steve Mawer. "Our core specialty business delivered strong profitability in the quarter, driven by the Partnership's commercial excellence initiatives that have led the improvement in our sales mix and maintaining our margins in a falling crude price environment. These efforts contributed to the significant year-over-year expansion to Adjusted gross profit per barrel and Adjusted EBITDA margins during the quarter. Our fuels segment performed well, with solid results supported by improved operational performance and record utilization at the Great Falls refinery. These structural improvements to both the commercial and operational aspects of our business drove the Partnership's healthy earnings."
Mawer added, "Looking ahead, we will continue to prioritize the health and safety of our team, customers and the communities in which we do business. I want to thank all our employees for their hard work and dedication to our customers through this difficult time. Many of our employees continue to work remotely, however, we are actively assessing and planning for a range of scenarios that would allow us to return to work, in accordance with guidance from health authorities. While federal guidelines and state orders have deemed our businesses as essential, the economic impacts of the virus are starting to be evident in a number of our end-markets. To date, our business operations have continued with limited interruption to our supply chain, and we will work to service the needs of our customers through this period of uncertainty. Calumet has taken significant strategic actions over the last several years to reposition the Partnership's portfolio around the more consistent and defensible core specialty business. As this drastic change in the economic environment unfolded, we enacted a previously developed response plan which included reducing capital spending, inventory and corporate overhead costs, which has bolstered our liquidity. These actions, combined with the ongoing contributions of our improved operations have improved the resilience of our business, which we believe will increase Calumet's ability to successfully navigate this period of volatility and uncertainty."
Mawer concluded, "We remain firmly committed to our strategic priorities, and will work diligently to continue to prioritize free cash flows and improvement to our balance sheet and leverage metrics. While the demand landscape is unclear, we anticipate that we have adequate liquidity between our cash balance and borrowing capacity to weather these unusual market conditions."
Specialty Products Segment | Results Summary
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Gross profit | $ | 70.1 | $ | 92.9 | |||
Adjusted gross profit | $ | 92.1 | $ | 87.2 | |||
Adjusted EBITDA | $ | 64.5 | $ | 58.4 | |||
Gross profit per barrel | $ | 31.45 | $ | 38.07 | |||
Adjusted gross profit per barrel | $ | 41.32 | $ | 35.73 | |||
Adjusted EBITDA Margin | 19.7 | % | 16.6 | % | |||
During the first quarter, the Specialty products segment gross profit was $70.1 million compared to $92.9 million in the year-ago period. The Specialty products segment Adjusted EBITDA of $64.5 million and adjusted gross profit of $92.1 million, improved 10.4% and 5.6%, respectively, compared to the first quarter of 2019. This year-over-year growth in Adjusted EBITDA was driven primarily by improved Lubricating Oils margins, sales mix improvement from mix enrichment efforts and strong sales volumes of high-margin Finished Lubricants and Chemicals. Specialty products segment adjusted gross profit per barrel was $41.32, up 15.6% compared to the year-ago period, driven by improved sales volumes and contributions from the profitability plans implemented in the year prior. Adjusted EBITDA Margin was 19.7%, up 310 basis points compared to the year-ago period, due to stronger sales mix, margin improvement in the base oils market, and drop in crude oil prices at the end of the quarter, combining to increase margin capture versus the first quarter of 2019.
Fuel Products Segment | Results Summary
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Gross profit | $ | (15.8) | $ | 43.1 | |||
Adjusted gross profit | $ | 28.5 | $ | 10.8 | |||
Adjusted EBITDA | $ | 39.2 | $ | 25.9 | |||
Gross profit per barrel | $ | (2.57) | $ | 5.85 | |||
Adjusted gross profit per barrel | $ | 4.63 | $ | 1.47 | |||
During the first quarter, Fuel products segment gross profit was ($15.8) million, compared to $43.1 million in the year-ago period. Fuels products adjusted gross profit and Adjusted EBITDA of $28.5 million and $39.2 million, respectively, increased 163.9% and 51.4% compared to the year-ago period. The improvement was primarily due to the WCS/WTI heavy crude differential, which widened $7.09 per barrel compared to the year-ago period but was partially offset by increased RINs expenses during the quarter. Embedded Self-Help practices resulting in improved operational reliability and capacity utilization helped drive this year-over-year profitability improvement, despite headwinds in the market for fuels products.
Partnership Liquidity
As of March 31, 2020, the Partnership had total liquidity of $325.6 million, comprised of $103.7 million of cash and $221.9 million of availability under the revolving credit facility. As of March 31, 2020, Calumet had a $401.0 million borrowing base, $31.9 million in outstanding standby letters of credit and $147.2 million outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Full-Year 2020 Capital Spending Forecast
Through the first quarter of 2020, total capital spending, including turnaround investments, was $23.3 million. For the full-year 2020, the Partnership's previously estimated capital expenditures were expected to be in the range of $80.0 million to $90.0 million, but due to increased volatility with domestic and global demand resulting from the ongoing COVID-19 pandemic, the Partnership's capital expenditures are expected to be in the range of $50.0 million to $60.0 million.
Operations Summary
The following table sets forth information about the Partnership's combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended March 31, | |||||
2020 | 2019 | ||||
(In bpd) | |||||
Total sales volume (1) | 92,143 | 109,022 | |||
Total feedstock runs (2) | 91,302 | 105,434 | |||
Facility production: (3) | |||||
Specialty products: | |||||
Lubricating oils | 10,240 | 12,357 | |||
Solvents | 6,807 | 7,935 | |||
Waxes | 1,271 | 1,379 | |||
Packaged and synthetic specialty products (4) | 1,405 | 1,874 | |||
Other | 3,480 | 1,172 | |||
Total | 23,203 | 24,717 | |||
Fuel products: | |||||
Gasoline | 19,781 | 24,610 | |||
Diesel | 25,898 | 30,477 | |||
Jet fuel | 3,805 | 2,629 | |||
Asphalt, heavy fuel oils and other | 15,211 | 19,329 | |||
Total | 64,695 | 77,045 | |||
Total facility production (3) | 87,898 | 101,762 | |||
(1) | Total sales volume includes sales from the production at the Partnership's 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in the Partnership's fuel products segment sales. | |||||
The decrease in total sales volume for the three months ended March 31, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery and the terminated third party naphthenic lubricating oil production arrangement. | ||||||
(2) | Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. | |||||
The decrease in total feedstock runs for the three months ended March 31, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery. | ||||||
(3) | Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. | |||||
The change in total facility production for the three months ended March 31, 2020, as compared to the same period in 2019, is due primarily to the items discussed above. | ||||||
(4) | Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. | |||||
Webcast Information
A conference call is scheduled for 10:00 a.m. ET on May 7, 2020 to discuss the financial and operational results for the first quarter of 2020. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 5843339. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company'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) 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. Calumet is based in Indianapolis, Indiana, and operates nine manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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 the ongoing novel coronavirus ("COVID-19") pandemic and global crude oil production levels on our business and operations, (ii) our expectation regarding our business outlook and cash flows, (iii) our expectation regarding anticipated capital expenditures and strategic initiatives, and (iv) our ability to meet our financial commitments, debt service obligations, 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 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 acquisitions or dispositions. 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: crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; the recent outbreak of COVID-19 and the adverse impact thereof on our business, financial condition, results of operations and cash flows; the overall demand for specialty hydrocarbon products, fuels and other refined products in markets we serve; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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 and inventory values; 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; impact of possible divestitures of assets or business; the adequacy of capital resources and liquidity; our ability to access to capital, including debt and equity markets, 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 Fuels Standard, including the prices paid for Renewable Identification Numbers; 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 and Quarterly Reports on Form 10-Q.
We have based our forward-looking statements on our current expectations, estimates and projections about our business and industry. 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.
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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
During the first quarter of 2020, we changed how we calculate Adjusted EBITDA, which is used by management for evaluating performance, allocating resources and managing our business. The revised calculation of Adjusted EBITDA now excludes the impact of LCM inventory adjustments and the liquidation of inventory layers calculated using the last-in, first-out ("LIFO") method, which were previously included. This revised calculation better reflects the performance of our business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change. We previously also presented Adjusted EBITDA (excluding LCM/LIFO), which is consistent with our revised definition of Adjusted EBITDA.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) LCM inventory adjustments; and (i) the impact of liquidation of inventory layers calculated using the LIFO method.
Adjusted net income (loss) per unit: We define Adjusted net income (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Specialty products segment Adjusted gross profit: We define Specialty products segment Adjusted gross profit for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of inventory layers calculated using the LIFO method.
Fuel products segment Adjusted gross profit: We define Fuel products segment Adjusted gross profit for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of inventory layers calculated using the LIFO method.
Further, management and various investors use the ratio of Net debt (defined as total debt less cash) to Adjusted EBITDA, or "net debt leverage," as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. The metric "total debt less cash" includes borrowed long-term debt, letters of credit, and capital lease obligations, less cash.
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 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"); our 7.75% senior notes due April 15, 2023, that were issued in March 2015 (the "2023 Notes"), and our 11.00% senior notes due April 15, 2025, that were issued in October 2019 (the "2025 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 2022 Notes, 2023 Notes and 2025 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit 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, Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted net income (loss) per unit, and segment Adjusted gross profit are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit and segment Adjusted gross profit may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit and segment Adjusted gross profit in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; and segment Adjusted gross profit to segment gross profit, 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 March 31, | |||||||
2020 | 2019 | ||||||
Sales | $ | 692.6 | $ | 851.3 | |||
Cost of sales | 638.3 | 715.3 | |||||
Gross profit | 54.3 | 136.0 | |||||
Operating costs and expenses: | |||||||
Selling | 13.3 | 13.3 | |||||
General and administrative | 20.2 | 34.9 | |||||
Transportation | 30.8 | 35.9 | |||||
Taxes other than income taxes | 5.0 | 5.1 | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Other operating expense | 3.0 | 1.3 | |||||
Operating income (loss) | (24.0) | 33.8 | |||||
Other income (expense): | |||||||
Interest expense | (29.3) | (32.3) | |||||
Gain on debt extinguishment | — | 0.4 | |||||
Gain on derivative instruments | 38.5 | 9.1 | |||||
Other | 0.9 | 5.3 | |||||
Total other income (expense) | 10.1 | (17.5) | |||||
Net income (loss) before income taxes | (13.9) | 16.3 | |||||
Income tax (benefit) expense | 0.5 | (0.1) | |||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
Allocation of net income (loss): | |||||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
Less: | |||||||
General partner's interest in net income (loss) | (0.3) | 0.3 | |||||
Non-vested share-based payments | — | 0.1 | |||||
Net income (loss) available to limited partners | $ | (14.1) | $ | 16.0 | |||
Weighted average limited partner units outstanding: | |||||||
Basic | 78,399,314 | 78,111,551 | |||||
Diluted | 78,399,314 | 78,175,007 | |||||
Limited partners' interest basic and diluted net income (loss) per unit: | $ | (0.18) | $ | 0.20 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) | |||||||
March 31, 2020 | December 31, 2019 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 103.7 | $ | 19.1 | |||
Accounts receivable, net | 176.0 | 175.0 | |||||
Other | 11.0 | 13.5 | |||||
187.0 | 188.5 | ||||||
Inventories | 222.6 | 292.6 | |||||
Derivative assets | 22.8 | 0.9 | |||||
Prepaid expenses and other current assets | 8.3 | 11.0 | |||||
Total current assets | 544.4 | 512.1 | |||||
Property, plant and equipment, net | 964.7 | 973.5 | |||||
Goodwill | 172.5 | 171.4 | |||||
Other intangible assets, net | 68.4 | 71.2 | |||||
Operating lease right-of-use assets | 78.5 | 93.1 | |||||
Other noncurrent assets, net | 33.8 | 36.5 | |||||
Total assets | $ | 1,862.3 | $ | 1,857.8 | |||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 158.5 | $ | 230.2 | |||
Accrued interest payable | 46.8 | 32.0 | |||||
Accrued salaries, wages and benefits | 22.4 | 35.7 | |||||
Other taxes payable | 13.7 | 11.8 | |||||
Obligations under inventory financing agreements | 95.1 | 134.3 | |||||
Other current liabilities | 50.2 | 58.6 | |||||
Current portion of operating lease liabilities | 49.0 | 60.6 | |||||
Current portion of long-term debt | 2.0 | 1.8 | |||||
Total current liabilities | 437.7 | 565.0 | |||||
Pension and postretirement benefit obligations | 7.6 | 7.9 | |||||
Other long-term liabilities | 20.6 | 20.8 | |||||
Long-term operating lease liabilities | 30.7 | 33.0 | |||||
Long-term debt, less current portion | 1,358.7 | 1,209.5 | |||||
Total liabilities | 1,855.3 | 1,836.2 | |||||
Commitments and contingencies | |||||||
Partners' capital: | |||||||
Partners' capital | 17.8 | 32.2 | |||||
Accumulated other comprehensive loss | (10.8) | (10.6) | |||||
Total partners' capital | 7.0 | 21.6 | |||||
Total liabilities and partners' capital | $ | 1,862.3 | $ | 1,857.8 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Operating activities | |||||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 26.4 | 28.2 | |||||
Amortization of turnaround costs | 5.1 | 4.8 | |||||
Non-cash interest expense | 1.5 | 1.9 | |||||
Gain on debt extinguishments | — | (0.4) | |||||
Unrealized (gain) loss on derivative instruments | (31.6) | 2.6 | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Operating lease expense | 20.2 | 20.8 | |||||
Operating lease payments | (20.1) | (20.6) | |||||
Equity-based compensation | (4.5) | 2.2 | |||||
Lower of cost or market inventory adjustment | 66.3 | (38.9) | |||||
Other non-cash activities | 2.2 | (4.0) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (1.1) | (69.8) | |||||
Inventories | 3.8 | 31.9 | |||||
Prepaid expenses and other current assets | 1.5 | (3.5) | |||||
Derivative activity | (1.4) | (0.1) | |||||
Turnaround costs | (9.8) | (1.7) | |||||
Accounts payable | (65.3) | 37.2 | |||||
Accrued interest payable | 11.2 | 14.4 | |||||
Accrued salaries, wages and benefits | (8.5) | (6.8) | |||||
Other taxes payable | 1.9 | 2.9 | |||||
Other liabilities | (9.1) | (1.8) | |||||
Pension and postretirement benefit obligations | (0.2) | — | |||||
Net cash provided by (used in) operating activities | $ | (19.9) | $ | 27.4 | |||
Investing activities | |||||||
Additions to property, plant and equipment | (14.9) | (9.5) | |||||
Acquisition of business, net of cash acquired | (3.3) | — | |||||
Proceeds from sale of unconsolidated affiliate | — | 5.0 | |||||
Proceeds from sale of property, plant and equipment | — | 3.6 | |||||
Net cash provided by discontinued investing activities | 0.9 | 2.0 | |||||
Net cash provided by (used in) investing activities | $ | (17.3) | $ | 1.1 | |||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 472.5 | — | |||||
Repayments of borrowings — revolving credit facility | (325.3) | — | |||||
Repayments of borrowings — senior notes | — | (23.2) | |||||
Payments on finance lease obligations | (0.1) | (1.0) | |||||
Proceeds from inventory financing | 245.1 | 279.2 | |||||
Payments on inventory financing | (269.7) | (286.1) | |||||
Proceeds from other financing obligations | — | 0.3 | |||||
Payments on other financing obligations | (0.7) | (0.6) | |||||
Contributions from Calumet GP, LLC | — | 0.1 | |||||
Net cash provided by (used in) financing activities | $ | 121.8 | $ | (31.3) | |||
Net increase (decrease) in cash and cash equivalents | $ | 84.6 | $ | (2.8) | |||
Cash and cash equivalents at beginning of period | 19.1 | 155.7 | |||||
Cash and cash equivalents at end of period | $ | 103.7 | $ | 152.9 | |||
Supplemental disclosure of non-cash investing activities | |||||||
Non-cash property, plant and equipment additions | $ | 10.8 | $ | 3.3 | |||
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 March 31, | |||||||
2020 | 2019 | ||||||
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | (Unaudited) | ||||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
Add: | |||||||
Interest expense | 29.3 | 32.3 | |||||
Depreciation and amortization | 26.4 | 28.2 | |||||
Income tax (benefit) expense | 0.5 | (0.1) | |||||
EBITDA | $ | 41.8 | $ | 76.8 | |||
Add: | |||||||
LCM / LIFO (gain) loss | $ | 66.5 | $ | (38.0) | |||
Unrealized (gain) loss on derivative instruments | (31.6) | 2.6 | |||||
Amortization of turnaround costs | 5.1 | 4.8 | |||||
Gain from debt extinguishment | — | (0.4) | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Equity based compensation and other items | (2.9) | 3.4 | |||||
Other non-recurring expenses | (1.2) | — | |||||
Adjusted EBITDA | $ | 83.7 | $ | 59.7 | |||
Less: | |||||||
Replacement and environmental capital expenditures (1) | $ | 7.2 | $ | 6.2 | |||
Cash interest expense (2) | 27.8 | 30.4 | |||||
Turnaround costs | 9.8 | 1.7 | |||||
Income from unconsolidated affiliates | — | 3.8 | |||||
Income tax (benefit) expense | 0.5 | (0.1) | |||||
Distributable Cash Flow | $ | 38.4 | $ | 17.7 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (In millions) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by (used in) operating activities: | (Unaudited) | ||||||
Distributable Cash Flow | $ | 38.4 | $ | 17.7 | |||
Add: | |||||||
Replacement and environmental capital expenditures (1) | 7.2 | 6.2 | |||||
Cash interest expense (2) | 27.8 | 30.4 | |||||
Turnaround costs | 9.8 | 1.7 | |||||
Gain (loss) from unconsolidated affiliates | — | 3.8 | |||||
Income tax (benefit) expense | 0.5 | (0.1) | |||||
Adjusted EBITDA | $ | 83.7 | $ | 59.7 | |||
Less: | |||||||
LCM / LIFO (gain) loss | $ | 66.5 | $ | (38.0) | |||
Unrealized (gain) loss on derivative instruments | (31.6) | 2.6 | |||||
Amortization of turnaround costs | 5.1 | 4.8 | |||||
Gain from debt extinguishment | — | (0.4) | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Other non-recurring income | (1.2) | — | |||||
Equity based compensation and other items | (2.9) | 3.4 | |||||
EBITDA | $ | 41.8 | $ | 76.8 | |||
Add: | |||||||
Unrealized (gain) loss on derivative instruments | $ | (31.6) | $ | 2.6 | |||
Cash interest expense (2) | (27.8) | (30.4) | |||||
Equity based compensation | (4.5) | 2.2 | |||||
Lower of cost or market inventory adjustment | 66.3 | (38.9) | |||||
Income from unconsolidated affiliates | — | (3.8) | |||||
Gain on sale of unconsolidated affiliates | — | (1.2) | |||||
Amortization of turnaround costs | 5.1 | 4.8 | |||||
Gain from debt extinguishment | — | (0.4) | |||||
Operating lease expense | 20.2 | 20.8 | |||||
Operating lease payments | (20.1) | (20.6) | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Income tax benefit (expense) | (0.5) | 0.1 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (1.1) | (69.8) | |||||
Inventories | 3.8 | 31.9 | |||||
Other current assets | 1.5 | (3.5) | |||||
Derivative activity | (1.4) | (0.1) | |||||
Turnaround costs | (9.8) | (1.7) | |||||
Accounts payable | (65.3) | 37.2 | |||||
Accrued interest payable | 11.2 | 14.4 | |||||
Other liabilities | (15.7) | (5.7) | |||||
Other | 2.0 | 1.0 | |||||
Net cash provided by (used in) operating activities | $ | (19.9) | $ | 27.4 | |||
(1) | 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. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS) (In millions) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Reconciliation of Segment Adjusted EBITDA to EBITDA and Net income (loss): | (Unaudited) | ||||||
Segment Adjusted EBITDA | |||||||
Specialty products Adjusted EBITDA | $ | 64.5 | $ | 58.4 | |||
Fuel products Adjusted EBITDA | 39.2 | 25.9 | |||||
Corporate Adjusted EBITDA | (20.0) | (24.6) | |||||
Total segment Adjusted EBITDA | $ | 83.7 | $ | 59.7 | |||
Less: | |||||||
LCM / LIFO (gain) loss | $ | 66.5 | $ | (38.0) | |||
Unrealized (gain) loss on derivative instruments | $ | (31.6) | $ | 2.6 | |||
Amortization of turnaround costs | 5.1 | 4.8 | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Gain from debt extinguishment | — | (0.4) | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Equity based compensation and other items | (2.9) | 3.4 | |||||
Other non-recurring income | (1.2) | — | |||||
EBITDA | $ | 41.8 | $ | 76.8 | |||
Less: | |||||||
Interest expense | $ | 29.3 | $ | 32.3 | |||
Depreciation and amortization | 26.4 | 28.2 | |||||
Income tax (benefit) expense | 0.5 | (0.1) | |||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT METRICS EXCLUDING LCM/LIFO (In millions, except per barrel data) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Reconciliation of Segment Metrics Excluding LCM/LIFO: | (Unaudited) | ||||||
Specialty products segment gross profit | $ | 70.1 | $ | 92.9 | |||
LCM inventory adjustments | 22.0 | (6.6) | |||||
LIFO inventory layer adjustments | — | 0.9 | |||||
Specialty products segment Adjusted gross profit | $ | 92.1 | $ | 87.2 | |||
Fuel products segment gross profit | $ | (15.8) | $ | 43.1 | |||
LCM inventory adjustments | 44.3 | (32.3) | |||||
Fuel products segment Adjusted gross profit | $ | 28.5 | $ | 10.8 | |||
Reported Specialty products segment gross profit per barrel | $ | 31.45 | $ | 38.07 | |||
LCM/LIFO inventory adjustments per barrel | 9.87 | (2.34) | |||||
Specialty products segment Adjusted gross profit per barrel | $ | 41.32 | $ | 35.73 | |||
Reported Fuel products segment gross profit per barrel | $ | (2.57) | $ | 5.85 | |||
LCM/LIFO inventory adjustments per barrel | 7.20 | (4.38) | |||||
Fuel products segment Adjusted gross profit per barrel | $ | 4.63 | $ | 1.47 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) (In millions, except per unit data) | |||||||
Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | (Unaudited) | ||||||
Net income (loss) | $ | (14.4) | $ | 16.4 | |||
Add: | |||||||
LCM inventory adjustments | 65.2 | (38.9) | |||||
LIFO inventory layer adjustments | — | 0.9 | |||||
Unrealized (gain) loss on derivative instruments | (31.6) | 2.6 | |||||
Gain from debt extinguishment | — | (0.4) | |||||
Gain on sale of unconsolidated affiliate | — | (1.2) | |||||
Loss on impairment and disposal of assets | 6.0 | 11.7 | |||||
Equity based compensation and other non-cash items | (2.9) | 3.4 | |||||
Adjusted net income (loss) | $ | 22.3 | $ | (5.5) | |||
Adjusted net income (loss) per unit | $ | 0.28 | $ | (0.07) | |||
Average limited partner units - diluted | 78,399,314 | 78,175,007 | |||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET DEBT / LTM ADJUSTED EBITDA (Dollars in millions) | |||||||
March 31, | |||||||
2020 | 2019 | ||||||
Reconciliation of Net Debt / LTM Adjusted EBITDA | (Unaudited) | ||||||
Revolving Credit Facility | $ | 147.2 | $ | — | |||
6.50% Senior Notes due 2021 | — | 876.8 | |||||
7.625% Senior Notes due 2022 | 350.0 | 350.0 | |||||
7.75% Senior Notes due 2023 | 325.0 | 325.0 | |||||
11.00% Senior Notes due 2025 | 550.0 | — | |||||
Finance Leases | 3.9 | 3.3 | |||||
Other | 3.4 | 4.9 | |||||
Total Debt | $ | 1,379.5 | $ | 1,560.0 | |||
Less Cash | $ | 103.7 | $ | 152.9 | |||
Net Debt
| $ | 1,275.8 | $ | 1,407.1 | |||
LTM Adjusted EBITDA
| $ | 286.8 | $ | 288.6 | |||
Net Debt / LTM Adjusted EBITDA | 4.4 | x | 4.9 | x | |||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-first-quarter-2020-results-301054922.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/7/20204/30/2020 - Calumet Specialty Products Partners, L.P. to Release First Quarter 2020 Results on May 7
Calumet Specialty Products Partners, L.P. to Release First Quarter 2020 Results on May 7
Source: PR Newswire
INDIANAPOLIS, April 29, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it plans to report results for the fiscal first quarter 2020 on May 7, 2020. A conference call to discuss the financial and operational results is scheduled for May 7, 2020 at 10:00 AM ET.
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 https://edge.media-server.com/mmc/p/7kk25w3x. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the conference ID 5843339. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our capital budget guidance, business outlook and transformation efforts, (ii) our expectation regarding expense reduction plans and (iii) statements regarding future Adjusted EBITDA contributions attributable to Phase II of our multi-year Self-Help program. 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 expectations for future operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions or dispositions. 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: various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the COVID-19 pandemic and the actions of foreign oil producers (most notably Saudi Arabia and Russia) to increase crude oil production, including the (i) continuation of a swift and material decline in the demand for fuels and other refined products over an uncertain period of time, (ii) uncertainty regarding the length of time it will take for the United States and the rest of the world to slow the spread of the COVID-19 virus to the point where applicable authorities are comfortable easing current restrictions on various commercial and economic activities (such restrictions are designed to protect public health but also have the effect of significantly reducing demand for fuels and other refined products), (iii) uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for specialty hydrocarbon products, fuels and other refined products and therefore the demand for our products, (iv) the refusal or inability of our customers or counterparties to perform their obligations under their contracts with us (including commercial contracts and other agreements), whether justified or not and whether due to financial constraints (reduced creditworthiness, liquidity issues or insolvency), market constraints, legal constraints (including governmental orders or guidance), the exercise of contractual or common law rights that allegedly excuse their performance (such as force majeure or similar claims) or other factors and (v) our inability to perform our obligations under our contracts, whether due to non-performance by third parties, including our customers or counterparties, market constraints, third-party constraints, legal constraints (including governmental orders or guidance), or other factors; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 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, including our latest Annual Report on Form 10-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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-first-quarter-2020-results-on-may-7-301049865.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
4/30/2020Calumet Specialty Products Partners, L.P. Provides Operations and Liquidity Update
Source: PR Newswire
INDIANAPOLIS, April 9, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today released information regarding the Partnership's operations, in addition to updates to the Partnership's balance sheet strength and liquidity position. Additionally, the Partnership provided updated guidance on 2020 capital budget expectations.
"We continue to closely monitor the impacts of the COVID-19 pandemic, and our foremost concern is the safety of our employees and the communities we serve," said Steve Mawer, Chief Executive Officer of Calumet. "Our specialty and fuels production facilities have continued to operate with limited disruption across our supply chain. The federal guidelines and state orders put in place to protect the public have deemed our businesses as essential. Our products and formulations are vital to a diverse set of markets, from healthcare and personal care products, to food processing and water treatment. While the demand landscape remains uncertain, to date our businesses have not experienced a significant step down in customer demand."
Mawer continued, "In early March, we implemented our business continuity plans, and our essential staff at the plants have remained on-site and are continuing production. The rest of our employees are supporting our production operations remotely. We continue to operate in accordance with the guidelines of federal, state and local government agencies, as well as public health organizations, to maintain a safe and healthy work environment for our employees. I want to thank all of our employees for their commitment and exemplary effort through this uncertain time as we work to meet the needs of our customers and our communities. While this is a challenging economic environment, the strategic actions that Calumet has taken over the past several years to reposition our portfolio with a core focus on specialty products and to improve business operations through self-help, have made our business more resilient, less volatile, and better positioned to succeed."
Business Transformed, Specialty-focused Core Business:
Bruce Fleming, EVP Strategy, said "Over the last few years, we have substantially reduced our exposure to commodity price volatility by selling an oilfield services business and three fuels refineries, while simultaneously upgrading performance of our core specialties assets. Our portfolio is now more concentrated in specialty products with greater long-term demand defensibility, particularly in niche applications for higher-value end markets. Additionally, we have reconfigured our remaining fuels assets such that gasoline output is only about 20% of systemwide crude runs, while the higher margin distillates (ULSD, jet fuel and solvents) are 40% of crude runs during normal market conditions. Given today's unusual market conditions, we have the capability to continue to step gasoline down further while retaining diesel output. For example, our Great Falls refinery can sequentially reduce gasoline output to zero without cutting crude run or diesel production at all. Moving forward we will use our above-average optimization flexibility during the current demand environment and price dynamics."
Balance Sheet and Liquidity Update:
"Calumet exited the first quarter with sufficient liquidity to appropriately fund its business operations in this fast-changing business environment," said H. Keith Jennings, Chief Financial Officer of Calumet. "Over the past four years, we have taken significant steps to strengthen our balance sheet and solidify our sources of liquidity, improved inventory management, reduced capital expenditures, and entered into our third-party Supply and Offtake Agreement which increased our working capital flexibility. Our Self-Help initiatives and culture have eliminated costs across our system, further improving our financial resiliency, and in 2020 we have already achieved the full $20 million goal for Adjusted EBITDA improvement through General and Administrative (G&A) cost reductions."
Jennings continued, "We intend to manage our business to generate positive cash flow from operating activities, and will take further steps, as required, to manage costs and working capital through this period of global economic uncertainty."
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Non-GAAP Financial Measures
The preliminary expected forward-looking incremental Adjusted EBITDA contained in this press release is provided only on a non-GAAP basis due to the inherent difficulty of calculating items that would be included in Net income (loss) on a GAAP basis. As a result, reconciliation of forward-looking incremental Adjusted EBITDA to GAAP Net income (loss) is not available without unreasonable effort. These amounts that would require unreasonable effort to quantify could be significant, such that the amount of projected GAAP net income would vary substantially from the amount of projected incremental Adjusted EBITDA, and Calumet is unable to address the probable significance of information that is currently unavailable. It is expected that incremental Adjusted EBITDA, when reported, will reflect the exclusion of, among other things, interest expense, depreciation and amortization, and income taxes.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our capital budget guidance, business outlook and transformation efforts, (ii) our expectation regarding expense reduction plans and (iii) statements regarding future Adjusted EBITDA contributions attributable to Phase II of our multi-year Self-Help program. 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 expectations for future operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions or dispositions. 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: various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the COVID-19 pandemic and the actions of foreign oil producers (most notably Saudi Arabia and Russia) to increase crude oil production, including the (i) continuation of a swift and material decline in the demand for fuels and other refined products over an uncertain period of time, (ii) uncertainty regarding the length of time it will take for the United States and the rest of the world to slow the spread of the COVID-19 virus to the point where applicable authorities are comfortable easing current restrictions on various commercial and economic activities (such restrictions are designed to protect public health but also have the effect of significantly reducing demand for fuels and other refined products), (iii) uncertainty regarding the timing, pace and extent of an economic recovery in the United States and elsewhere, which in turn will likely affect demand for specialty hydrocarbon products, fuels and other refined products and therefore the demand for our products, (iv) the refusal or inability of our customers or counterparties to perform their obligations under their contracts with us (including commercial contracts and other agreements), whether justified or not and whether due to financial constraints (reduced creditworthiness, liquidity issues or insolvency), market constraints, legal constraints (including governmental orders or guidance), the exercise of contractual or common law rights that allegedly excuse their performance (such as force majeure or similar claims) or other factors and (v) our inability to perform our obligations under our contracts, whether due to non-performance by third parties, including our customers or counterparties, market constraints, third-party constraints, legal constraints (including governmental orders or guidance), or other factors; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 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, including our latest Annual Report on Form 10-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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-provides-operations-and-liquidity-update-301038002.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
4/9/2020Calumet Specialty Products Partners Accelerates CEO Transition
Source: PR Newswire
INDIANAPOLIS, April 6, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company," the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it has accelerated its Chief Executive Officer ("CEO") transition and that Steve Mawer, current board member, will assume the role of CEO immediately. Tim Go, the Partnership's former CEO, will continue providing services to the Partnership and will assist with the successful transition of the new CEO.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 our business outlook and the execution of a possible transaction involving our Great Falls refinery. 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. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Current Reports on Form 8-K. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-accelerates-ceo-transition-301035849.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
4/6/2020Calumet Specialty Products Partners, L.P. Announces CEO Transition
Source: PR Newswire
INDIANAPOLIS, March 5, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company," the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that Tim Go notified the Board of Directors of Calumet that he plans to resign as Chief Executive Officer (CEO) effective June 1, 2020 to pursue other interests closer to his family in Texas. Steve Mawer, a current board member, has been appointed to take over as CEO upon successful completion of an orderly transition process.
Fred Fehsenfeld, Chairman of the Board, commented, "On behalf of everyone on the Board, I'd like to thank Tim for his leadership and service to our General Partner, employees and unitholders. Tim led Calumet through a very difficult turnaround, resetting our vision on our core Specialty business and focusing our efforts on operations excellence and delivering Self-Help growth. He divested non-core assets and significantly reduced our debt burden and leverage ratio. Most importantly, Tim built a strong management team that will continue to build on his legacy. Under Steve's leadership, we will continue executing our Specialty Products growth strategy. We are where we are today due to Tim's dedication and leadership, and I thank him for his contributions and sacrifice."
Fehsenfeld added, "Steve has been on our Board since 2016 and brings nearly three decades of industry experience. He is a perfect choice to lead the Partnership through its next chapter. He has chaired our compensation committee, been a member of our audit and finance, strategy and growth, and risk committees and has been active in helping with deleveraging the Company. With his breadth of experience and in-depth knowledge of our Company this transition will be seamless."
Tim Go added, "It has been a privilege to lead Calumet for nearly five years. I am extremely proud of our employees and what we have achieved in turning this Company around. With today's announcement that the Partnership is evaluating strategic options for its Great Falls, Montana refinery, my vision to return Calumet to its core Specialty business will be completed in the near future. I will be focused on driving that activity and ensuring an orderly transition to Steve over the next several months."
Steve Mawer concluded, "The opportunity to work with and lead a team whom I already know well and greatly respect is an exciting one which I am honored to accept. Our excellent results in 2019 show the substantial progress that Tim and the management team have already made in transforming Calumet. Our vision remains unchanged, and we will remain intently focused on deleveraging, operations excellence and growing the profitability of our specialty businesses."
Steve Mawer Background
Steve Mawer brings significant industry experience. He currently serves as Chairman of ClimeCo Corporation, an environmental commodities development and management company and on the Board of Directors of Zenith Energy Management, LLC, a midstream company. He also serves as a member of the advisory board of Heritage Environmental Services. He retired as president of Koch Supply & Trading and as a senior member of the Koch Industries management team in 2014 following a 27-year career in commodities trading, risk management and refining operations. In addition to global commodities trading, Steve brings manufacturing expertise as former head of Koch's European refining operations.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 our business outlook and the execution of a possible transaction involving our Great Falls refinery. 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. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Current Reports on Form 8-K. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-ceo-transition-301017319.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/5/20203/5/2020 - Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Year End 2019 Results
Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Year End 2019 Results
Source: PR Newswire
INDIANAPOLIS, March 5, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of petroleum-based specialty products, today reported results for the fourth quarter and year ended December 31, 2019, as follows:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||
Net income (loss) | $ | (38.6) | $ | 18.1 | $ | (43.6) | $ | (55.1) | |||||||
Adjusted net income (loss) | $ | (17.8) | $ | 38.8 | $ | (5.2) | $ | 13.7 | |||||||
Net income (loss) per unit | $ | (0.48) | $ | 0.23 | $ | (0.55) | $ | (0.69) | |||||||
Adjusted net income (loss) per unit | $ | (0.23) | $ | 0.50 | $ | (0.07) | $ | 0.18 | |||||||
Adjusted EBITDA | $ | 53.8 | $ | 55.7 | $ | 304.6 | $ | 263.9 | |||||||
Adjusted EBITDA (excluding LCM/LIFO) | $ | 49.9 | $ | 107.0 | $ | 262.8 | $ | 300.8 | |||||||
For the fourth quarter 2019, the Partnership's $38.6 million Net loss, or $0.48 of net loss per unit, and Adjusted EBITDA of $53.8 million included a $3.9 million favorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments and the liquidation of last-in, first-out ("LIFO") inventory layers. Excluding the impact of LCM, LIFO and other non-cash and non-recurring items, Adjusted net loss, Adjusted net loss per unit, and Adjusted EBITDA (excluding LCM/LIFO) were $17.8 million, $0.23 per unit, and $49.9 million, respectively.
For the full year 2019, the Partnership's $43.6 million Net loss, or $0.55 of net loss per unit, and Adjusted EBITDA of $304.6 million included a $41.8 million favorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments and the liquidation of last-in, first-out ("LIFO") inventory layers. Excluding the impact of LCM, LIFO and other non-cash and non-recurring items, Adjusted net loss, Adjusted net loss per unit, and Adjusted EBITDA (excluding LCM/LIFO) were $5.2 million, $0.07 per unit, and $262.8 million, respectively.
Investors are advised to review the Partnership's annual report on Form 10-K that will be filed today for further details on the 2019 results, as well as the investor relations section of the website where an updated investor presentation for the fourth quarter 2019 has been provided. For detailed information on Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA, Adjusted EBITDA (excluding LCM/LIFO), Adjusted EBITDA margin, Adjusted net income (loss) per unit, Specialty products segment gross profit (excluding LCM/LIFO), Fuel products segment gross profit (excluding LCM/LIFO) and a reconciliation of such measures to the nearest comparable U.S. GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"During the fourth quarter, Calumet delivered on key strategic priorities, including the refinancing of our 2021 notes and the divestment of our San Antonio fuels refinery" said Tim Go, Chief Executive Officer of Calumet. "Our leverage ratio improved to 4.0x net debt to trailing twelve month Adjusted EBITDA (or 4.6x excluding LCM/LIFO), down from 5.6x net debt to trailing twelve month Adjusted EBITDA (or 4.9x excluding LCM/LIFO) at the end of 2018. Calumet delivered another strong quarter of financial and operational performance, with strong utilization in both our Specialty and Fuel Products segments, overcoming seasonally softer demand and market headwinds, to deliver $49.9 million of Adjusted EBITDA (excluding LCM/LIFO) in the fourth quarter."
Go added, "For the full year, Calumet delivered $262.8 million of Adjusted EBITDA (excluding LCM/LIFO) and $191.9 million of cash flow from operations. Our Specialty Products segment contributed $207.9 million of Adjusted EBITDA (excluding LCM/LIFO), which was up 24% year-over-year. This helped to partially offset the lower Fuel Products segment contribution of $152.5 million of Adjusted EBITDA (excluding LCM/LIFO), which was down year-over-year, due primarily to the weaker crude differentials. In addition, our Specialty Products gross profit per barrel increased 7.2% to $34.41, and our Specialty Products EBITDA margins (excluding LCM/LIFO) increased 320 basis points to 15.4% driven by volume growth in solvents, naphthenic oils, & finished lubricants and our margin-enhancing self-help initiatives. In particular, our rationalization of low-margin SKUs shed 2,100 bpd of low profitability business and has freed up our commercial team to focus on growing our higher margin business. Finally, in 2019, we reduced total long-term debt by over $390 million and lowered our interest expenses by roughly $21 million.
Go concluded, "Looking ahead to 2020, Calumet remains firmly committed to our transformation, carrying the momentum of our improved profitability and strengthened balance sheet to drive top- and bottom-line growth in our core specialties business. We have taken the next step in our portfolio transformation and started the process of reviewing strategic options for our remaining fuels refinery in Great Falls, Montana and expect to execute upon an option, which could occur as early as this year. In addition, I am pleased to announce that Calumet completed the strategic acquisition of Paralogics, LLC during the first quarter, which expands our presence in the wax blending and packaging market. In conclusion, we remain focused on executing against our 2020 Self-Help efforts, which we expect to deliver $40 million in incremental Adjusted EBITDA. When combined with our other strategic priorities, we believe these efforts should help us expand our Specialty Products gross profit to over $40 per barrel and our Adjusted EBITDA Margins over 15%."
Specialty Products Segment | Results Summary
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in millions, except per barrel data) | |||||||||||||||
Specialty products segment gross profit | $ | 69.2 | $ | 57.2 | $ | 324.8 | $ | 274.6 | |||||||
Specialty products segment gross profit | $ | 63.3 | $ | 68.9 | $ | 312.7 | $ | 280.7 | |||||||
Specialty products segment Adjusted EBITDA | $ | 48.9 | $ | 32.9 | $ | 220.2 | $ | 162.2 | |||||||
Specialty products segment Adjusted EBITDA | $ | 42.8 | $ | 45.2 | $ | 207.9 | $ | 168.3 | |||||||
Specialty products segment gross profit per barrel | $ | 33.82 | $ | 26.57 | $ | 35.74 | $ | 31.41 | |||||||
Specialty products segment gross profit per barrel | $ | 30.94 | $ | 32 | $ | 34.41 | $ | 32.11 | |||||||
Specialty products segment Adjusted EBITDA Margin | 16.2 | % | 10.0 | % | 16.3 | % | 11.7 | % | |||||||
Specialty products segment Adjusted EBITDA Margin | 14.2 | % | 13.7 | % | 15.4 | % | 12.2 | % | |||||||
During the fourth quarter 2019, Specialty Products segment gross profit was $69.2 million and Adjusted EBITDA was $48.9 million, which included $6.1 million of favorable impact related to LCM and LIFO adjustments. Excluding these non-cash charges, fourth quarter segment gross profit (excluding LCM/LIFO) of $63.3 million declined 8.1%, while Adjusted EBITDA (excluding LCM/LIFO) of $42.8 million decreased 5.3%, each as compared to the fourth quarter 2018, as production volumes and Adjusted EBITDA were negatively impacted by turnaround activity at Shreveport in the quarter. These results were driven by strong operating performance and higher feedstock runs but were offset by planned downtime at our Shreveport refinery. Additionally, healthy growth across solvents, naphthenic base oils, and finished lubricants and chemicals helped offset the negative impacts of continued weakness in the paraffinic base oil market. Adjusted EBITDA margin was 16.2%, or 14.2% (excluding LCM/LIFO) improved versus the prior year period, as the rationalization of low-margin products more than overcame the volatility in crude oil prices and the impact of downtime at the Shreveport refinery.
Fuel Products Segment | Results Summary
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in millions, except per barrel data) | |||||||||||||||
Fuel products segment gross profit | $ | 21.6 | $ | 46.0 | $ | 126.9 | $ | 162.1 | |||||||
Fuel products segment gross profit | $ | 23.8 | $ | 82.8 | $ | 97.4 | $ | 192.9 | |||||||
Fuel products segment Adjusted EBITDA | $ | 26.5 | $ | 43.9 | $ | 182.0 | $ | 199.2 | |||||||
Fuel products segment Adjusted EBITDA | $ | 28.7 | $ | 82.9 | $ | 152.5 | $ | 230.0 | |||||||
Fuel products segment gross profit per barrel | $ | 3.18 | $ | 6.80 | $ | 4.35 | $ | 6.07 | |||||||
Fuel products segment gross profit per barrel | $ | 3.50 | $ | 12.24 | $ | 3.34 | $ | 7.22 | |||||||
During the fourth quarter 2019, Fuel Products segment gross profit was $21.6 million, a decrease of 50.6% compared to the prior year period, and Adjusted EBITDA was $26.5 million, a decrease of 39.6% compared to the prior year period. In each case, this included $2.2 million of unfavorable impact from LCM and LIFO adjustments. Excluding these non-cash charges, segment gross profit (excluding LCM/LIFO) of $23.8 million and Adjusted EBITDA (excluding LCM/LIFO) of $28.7 million, both decreased compared to the year-ago period. These results were primarily due to the tightening of the WCS/WTI heavy crude differential, which tightened $15.50 per barrel compared to last year's fourth quarter, in addition to the decrease in the benchmark Gulf Coast 2/1/1 crack spread. These headwinds were partially offset by strong throughput volumes across the fuels business, which grew nearly 17% compared to last year's fourth quarter, as Self-Help and debottlenecking projects conducted throughout the year helped increase production, despite the downtime taken at the Shreveport refinery during the quarter.
Partnership Liquidity
As of December 31, 2019, the Partnership had total liquidity of $378.5 million, comprised of $19.1 million of cash on hand, plus approximately $359.4 million of availability under its revolving credit facility. The borrowing base under the revolving credit facility was approximately $401.9 million and the Partnership had $42.5 million in outstanding standby letters of credit and no outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
2020 Outlook
For fiscal 2020, total capital spending is expected to be between $80 million to $90 million. Included in the forecast is maintenance capital, expected turnaround activity and smaller growth capital projects.
The Partnership recently provided an update for Phase II of its self-help program that was originally launched in early 2019. Phase II remains on track to deliver the $100 million of incremental Adjusted EBITDA by year-end 2021. Management expects to deliver approximately $40 million of incremental Adjusted EBITDA in 2020. Half, or approximately $20 million, will come from Specialty Products growth initiatives, including two debottlenecking projects, further rationalization and replacement of low margin tolling agreements, and additional finished lubricant expansion projects. The other half, or roughly $20 million, will come from an expense reduction plan designed to right-size General and Administrative spending. The Partnership is expected to incur approximately $10 million in one-time costs in 2020 to implement this expense reduction plan. Due to the unknown effect, timing and potential significance of certain income statement items, the Partnership is unable to provide a reconciliation of these projected Adjusted EBITDA amounts to projected net income (loss), the most comparable financial measure calculated in accordance with GAAP.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of discontinued operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
(In bpd) | (In bpd) | ||||||||||||||||||||
Total sales volume (1) | 96,032 | 96,967 | 104,734 | 97,104 | |||||||||||||||||
Total feedstock runs (2) | 94,164 | 91,972 | 103,603 | 94,137 | |||||||||||||||||
Facility production: (3) | |||||||||||||||||||||
Specialty products: | |||||||||||||||||||||
Lubricating oils | 10,420 | 12,202 | 11,506 | 11,931 | |||||||||||||||||
Solvents | 7,367 | 7,166 | 7,526 | 7,649 | |||||||||||||||||
Waxes | 1,015 | 1,596 | 1,315 | 1,279 | |||||||||||||||||
Packaged and synthetic specialty products (4) | 1,163 | 1,581 | 1,540 | 2,129 | |||||||||||||||||
Other | 2,172 | 1,544 | 1,764 | 2,113 | |||||||||||||||||
Total | 22,137 | 24,089 | 23,651 | 25,101 | |||||||||||||||||
Fuel products: | |||||||||||||||||||||
Gasoline | 20,091 | 20,751 | 22,877 | 20,323 | |||||||||||||||||
Diesel | 25,681 | 27,522 | 28,709 | 27,367 | |||||||||||||||||
Jet fuel | 4,634 | 2,084 | 4,506 | 2,895 | |||||||||||||||||
Asphalt, heavy fuel oils and other | 18,075 | 19,433 | 20,286 | 19,612 | |||||||||||||||||
Total | 68,481 | 69,790 | 76,378 | 70,197 | |||||||||||||||||
Total facility production (3) | 90,618 | 93,879 | 100,029 | 95,298 | |||||||||||||||||
(1) | Total sales volume includes sales from the production at our facilities and certain third-party facilities pursuant to supply |
(2) | Total feedstock runs represent the barrels per day of crude oil and other feedstocks processed at our facilities and at certain |
(3) | Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude |
(4) | Represents production of finished lubricants and specialty chemicals products, including the products from our Royal Purple, |
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook, cash flows and forecasted gross profit and Adjusted EBITDA margin results, (ii) our expectation regarding anticipated capital expenditures and strategic initiatives, including our expense reduction plan and timing of the execution on a possible transaction involving our Great Falls refinery, and (iii) our ability to meet our financial commitments, debt service obligations, 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 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuels products 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; 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 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 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 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.
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 U.S. GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) lower of cost or market ("LCM") inventory adjustments; (i) the impact of liquidation of LIFO inventory layers and (j) until third quarter of 2019, the amortization of turnaround costs.
Adjusted net income (loss) per unit: We define Adjusted net income (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA (excluding LCM/LIFO) for any period as Adjusted EBITDA excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We define Specialty products segment gross profit (excluding LCM/LIFO) for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We define Fuel products segment gross profit (excluding LCM/LIFO) for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this press release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 7.75% senior notes due April 15, 2023, that were issued in March 2015 (the "2023 Notes") and our 11.00% senior notes due April 15, 2025, that were issued in October 2019 (the "2025 Notes"). We are required to report Consolidated Cash Flow to the holders of our 2022 Notes, 2023 Notes and 2025 Notes and Adjusted 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit or any other measure of financial performance presented in accordance with U.S. GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Adjusted EBITDA (excluding LCM/LIFO) do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable U.S. GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable U.S. GAAP liquidity measure, for each of the periods indicated; and segment gross profit (excluding LCM/LIFO) to segment gross profit, our most directly comparable U.S. GAAP financial performance measure.
Further, management and various investors use the ratio of net debt (defined below) to trailing twelve month Adjusted EBITDA, or "net debt leverage," as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. Net debt is defined as borrowed long-term debt and capital lease obligations, less cash.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Unaudited) | |||||||||||||||
Sales | $ | 774.8 | $ | 848.0 | $ | 3,452.6 | $ | 3,497.5 | |||||||
Cost of sales | 684.0 | 747.1 | 3,000.9 | 3,060.8 | |||||||||||
Gross profit | 90.8 | 100.9 | 451.7 | 436.7 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 12.9 | 18.6 | 53.1 | 58.2 | |||||||||||
General and administrative | 31.2 | 27.0 | 136.7 | 122.5 | |||||||||||
Transportation | 27.0 | 37.5 | 122.9 | 137.2 | |||||||||||
Taxes other than income taxes | 5.0 | 4.9 | 20.5 | 18.1 | |||||||||||
Loss on impairment and disposal of assets | 5.9 | — | 37.0 | — | |||||||||||
(Gain) loss on the sale of business, net | 8.7 | (4.8) | 8.7 | (4.8) | |||||||||||
Other | (4.3) | 1.3 | (3.5) | (17.4) | |||||||||||
Operating income | 4.4 | 16.4 | 76.3 | 122.9 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (35.4) | (35.1) | (134.6) | (155.5) | |||||||||||
Debt extinguishment costs | (2.9) | — | (2.2) | (58.8) | |||||||||||
Gain (loss) on derivative instruments | (5.4) | 35.8 | 9.0 | 33.8 | |||||||||||
Gain (loss) from unconsolidated affiliates | — | (3.7) | 3.8 | (3.7) | |||||||||||
Gain on sale of unconsolidated affiliates | — | 0.2 | 1.2 | 0.2 | |||||||||||
Other | 0.5 | 5.2 | 3.4 | 10.8 | |||||||||||
Total other income (expense) | (43.2) | 2.4 | (119.4) | (173.2) | |||||||||||
Net income (loss) before income taxes from continuing operations | (38.8) | 18.8 | (43.1) | (50.3) | |||||||||||
Income tax expense (benefit) from continuing operations | (0.2) | (0.3) | 0.5 | 0.7 | |||||||||||
Net income (loss) from continuing operations | $ | (38.6) | $ | 19.1 | $ | (43.6) | $ | (51.0) | |||||||
Net loss from discontinued operations, net of taxes | — | (1.0) | — | (4.1) | |||||||||||
Net income (loss) | $ | (38.6) | $ | 18.1 | $ | (43.6) | $ | (55.1) | |||||||
Allocation of net income (loss): | |||||||||||||||
Net income (loss) | $ | (38.6) | $ | 18.1 | $ | (43.6) | $ | (55.1) | |||||||
Less: | |||||||||||||||
General partner's interest in net income (loss) | (0.8) | 0.4 | (0.9) | (1.1) | |||||||||||
Net income (loss) available to limited partners | $ | (37.8) | $ | 17.7 | $ | (42.7) | $ | (54.0) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic | 78,332,671 | 78,086,357 | 78,212,136 | 77,943,992 | |||||||||||
Diluted | 78,332,671 | 78,218,831 | 78,212,136 | 77,943,992 | |||||||||||
Limited partners' interest basic and diluted net income (loss) per unit: | |||||||||||||||
From continuing operations | $ | (0.48) | $ | 0.24 | $ | (0.55) | $ | (0.64) | |||||||
From discontinued operations | — | (0.01) | — | (0.05) | |||||||||||
Limited partners' interest | $ | (0.48) | $ | 0.23 | $ | (0.55) | $ | (0.69) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 19.1 | $ | 155.7 | |||
Accounts receivable, net | 188.5 | 198.0 | |||||
Inventories | 292.6 | 284.1 | |||||
Derivative assets | 0.9 | 18.3 | |||||
Prepaid expenses and other current assets | 11.0 | 13.9 | |||||
Total current assets | 512.1 | 670.0 | |||||
Property, plant and equipment, net | 973.5 | 1,098.1 | |||||
Investment in unconsolidated affiliates | — | 25.4 | |||||
Goodwill | 171.4 | 171.4 | |||||
Other intangible assets, net | 71.2 | 88.0 | |||||
Operating lease right-of-use assets | 93.1 | — | |||||
Other noncurrent assets, net | 36.5 | 34.6 | |||||
Total assets | $ | 1,857.8 | $ | 2,087.5 | |||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 230.2 | $ | 200.6 | |||
Accrued interest payable | 32.0 | 30.7 | |||||
Accrued salaries, wages and benefits | 35.7 | 25.7 | |||||
Other taxes payable | 11.8 | 15.2 | |||||
Obligations under inventory financing agreements | 134.3 | 105.3 | |||||
Other current liabilities | 58.6 | 33.8 | |||||
Current portion of operating lease liabilities | 60.6 | — | |||||
Current portion of long-term debt | 1.8 | 3.8 | |||||
Total current liabilities | 565.0 | 415.1 | |||||
Pension and postretirement benefit obligations | 7.9 | 4.5 | |||||
Other long-term liabilities | 20.8 | 1.5 | |||||
Long-term operating lease liabilities | 33.0 | — | |||||
Long-term debt, less current portion | 1,209.5 | 1,600.7 | |||||
Total liabilities | 1,836.2 | 2,021.8 | |||||
Commitments and contingencies | |||||||
Partners' capital: | |||||||
Partners' capital | 32.2 | 74.4 | |||||
Accumulated other comprehensive loss | (10.6) | (8.7) | |||||
Total partners' capital | 21.6 | 65.7 | |||||
Total liabilities and partners' capital | $ | 1,857.8 | $ | 2,087.5 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
Year Ended December 31, | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net loss | $ | (43.6) | $ | (55.1) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
Net loss from discontinued operations | — | 4.1 | |||||
Depreciation and amortization | 110.1 | 118.1 | |||||
Amortization of turnaround costs | 19.3 | 12.8 | |||||
Non-cash interest expense | 6.1 | 7.9 | |||||
Debt extinguishment costs | 2.2 | 58.8 | |||||
Unrealized (gain) loss on derivative instruments | 26.1 | (30.2) | |||||
Loss on impairment and disposal of assets | 37.0 | — | |||||
Operating lease expense | 78.2 | — | |||||
Operating lease payments | (78.2) | — | |||||
Equity based compensation | 5.9 | (1.2) | |||||
Lower of cost or market inventory adjustment | (35.6) | 30.6 | |||||
(Gain) loss from unconsolidated affiliates | (3.8) | 3.7 | |||||
Gain on sale of unconsolidated affiliates | (1.2) | (0.2) | |||||
(Gain) loss on sale of business, net | 8.7 | (4.8) | |||||
Other non-cash activities | (0.4) | 6.8 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (37.0) | 109.8 | |||||
Inventories | 16.3 | (0.3) | |||||
Prepaid expenses and other current assets | 4.5 | (4.5) | |||||
Derivative activity | (0.3) | (0.5) | |||||
Turnaround costs | (17.8) | (27.9) | |||||
Accounts payable | 71.3 | (78.2) | |||||
Accrued interest payable | 1.5 | (21.8) | |||||
Accrued salaries, wages and benefits | 5.3 | (5.6) | |||||
Other taxes payable | 2.5 | (0.9) | |||||
Other liabilities | 14.8 | (45.4) | |||||
Pension and postretirement benefit obligations | 0.1 | (0.1) | |||||
Net cash used in discontinued operating activities | — | (0.7) | |||||
Net cash provided by operating activities | $ | 191.9 | $ | 75.2 | |||
Investing activities | |||||||
Additions to property, plant and equipment | (54.9) | (49.8) | |||||
Investment in unconsolidated affiliates | — | (3.8) | |||||
Proceeds from sale of unconsolidated affiliates | 5.0 | 9.9 | |||||
Proceeds from sale of property, plant and equipment | 3.7 | 0.4 | |||||
Proceeds from sale of business, net | 55.1 | 44.8 | |||||
Net cash provided by discontinued investing activities | 5.6 | 6.8 | |||||
Net cash provided by investing activities | $ | 14.5 | $ | 8.3 | |||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 508.5 | 174.5 | |||||
Repayments of borrowings — revolving credit facility | (508.5) | (174.7) | |||||
Proceeds from borrowings — senior notes | 550.0 | — | |||||
Repayments of borrowings — senior notes | (898.5) | (400.0) | |||||
Payments on finance lease obligations | (0.9) | (1.6) | |||||
Proceeds from inventory financing agreements | 1,076.5 | 1,135.3 | |||||
Payments on inventory financing agreements | (1,057.3) | (1,128.3) | |||||
Proceeds from other financing activities | — | 4.7 | |||||
Payments on other financing obligations | (1.9) | (2.5) | |||||
Payments on extinguishment of debt | — | (46.6) | |||||
Debt issuance costs | (11.0) | (3.0) | |||||
Contributions from Calumet GP, LLC | 0.1 | 0.1 | |||||
Net cash used in financing activities | $ | (343.0) | $ | (442.1) | |||
Net decrease in cash and cash equivalents | (136.6) | (358.6) | |||||
Cash and cash equivalents at beginning of period | 155.7 | 514.3 | |||||
Cash and cash equivalents at end of period | $ | 19.1 | $ | 155.7 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Net income (loss) to EBITDA, | (Unaudited) | ||||||||||||||
Net income (loss) | $ | (38.6) | $ | 18.1 | $ | (43.6) | $ | (55.1) | |||||||
Add: | |||||||||||||||
Interest expense | 35.4 | 35.1 | 134.6 | 155.5 | |||||||||||
Depreciation and amortization | 27.5 | 29.3 | 110.1 | 118.1 | |||||||||||
Income tax (benefit) expense | (0.2) | (0.3) | 0.5 | 0.7 | |||||||||||
EBITDA | $ | 24.1 | $ | 82.2 | $ | 201.6 | $ | 219.2 | |||||||
Add: | |||||||||||||||
Unrealized (gain) loss on derivative instruments | $ | 5.9 | $ | (29.8) | $ | 26.1 | $ | (30.2) | |||||||
Debt extinguishment costs | 2.9 | — | 2.2 | 58.8 | |||||||||||
Amortization of turnaround costs | 2.8 | 4.1 | 19.3 | 12.8 | |||||||||||
Loss on impairment and disposal of assets | 5.9 | — | 37.0 | — | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | (1.2) | — | |||||||||||
(Gain) loss on sale of business, net | 8.7 | 2.9 | 8.7 | (0.7) | |||||||||||
Other non-recurring expenses | 2.2 | — | 3.5 | — | |||||||||||
Equity based compensation and other non-cash items | 1.3 | (3.7) | 7.4 | 4.0 | |||||||||||
Adjusted EBITDA | $ | 53.8 | $ | 55.7 | $ | 304.6 | $ | 263.9 | |||||||
Less: | |||||||||||||||
Replacement and environmental capital expenditures | $ | 23.0 | $ | 8.4 | $ | 50.0 | $ | 24.4 | |||||||
Cash interest expense (2) | 34.2 | 33.3 | 128.5 | 147.6 | |||||||||||
Turnaround costs | 1.0 | 16.8 | 17.8 | 27.9 | |||||||||||
Income (loss) from unconsolidated affiliates | — | — | 3.8 | (3.7) | |||||||||||
Income tax (benefit) expense | (0.2) | (0.3) | 0.5 | 0.7 | |||||||||||
Distributable Cash Flow | $ | (4.2) | $ | (2.5) | $ | 104.0 | $ | 67.0 | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
Year Ended December 31, | |||||||
2019 | 2018 | ||||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash | (Unaudited) | ||||||
Distributable Cash Flow | $ | 104.0 | $ | 67.0 | |||
Add: | |||||||
Replacement and environmental capital expenditures (1) | 50.0 | 24.4 | |||||
Cash interest expense (2) | 128.5 | 147.6 | |||||
Turnaround costs | 17.8 | 27.9 | |||||
(Income) loss from unconsolidated affiliates | 3.8 | (3.7) | |||||
Income tax expense | 0.5 | 0.7 | |||||
Adjusted EBITDA | $ | 304.6 | $ | 263.9 | |||
Less: | |||||||
Unrealized (gain) loss on derivative instruments | $ | 26.1 | $ | (30.2) | |||
Debt extinguishment costs | 2.2 | 58.8 | |||||
Amortization of turnaround costs | 19.3 | 12.8 | |||||
Loss on impairment and disposal of assets | 37.0 | — | |||||
Gain on sale of unconsolidated affiliate | (1.2) | — | |||||
(Gain) loss on the sale of business, net | 8.7 | (0.7) | |||||
Other non-recurring expenses | 3.5 | — | |||||
Non-cash equity-based compensation and other items | 7.4 | 4.0 | |||||
EBITDA | $ | 201.6 | $ | 219.2 | |||
Add: | |||||||
Unrealized (gain) loss on derivative instruments | 26.1 | (30.2) | |||||
Cash interest expense (2) | (128.5) | (147.6) | |||||
(Gain) loss on the sale of business, net | 8.7 | (0.7) | |||||
Loss on impairment and disposal of assets | 37.0 | — | |||||
Lower of cost or market inventory adjustment | (35.6) | 30.6 | |||||
Equity-based compensation | 5.9 | (1.2) | |||||
(Gain) loss from unconsolidated affiliates | (3.8) | 3.7 | |||||
Gain on sale of unconsolidated affiliates | (1.2) | — | |||||
Amortization of turnaround costs | 19.3 | 12.8 | |||||
Income tax expense | (0.5) | (0.7) | |||||
Debt extinguishment costs | 2.2 | 58.8 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (37.0) | 109.8 | |||||
Inventories | 16.3 | (0.3) | |||||
Other current assets | 4.5 | (4.5) | |||||
Turnaround costs | (17.8) | (27.9) | |||||
Derivative activity | (0.3) | (0.5) | |||||
Other assets | (0.1) | — | |||||
Accounts payable | 71.3 | (78.2) | |||||
Accrued interest payable | 1.5 | (21.8) | |||||
Other taxes payable | — | — | |||||
Other liabilities | 22.6 | (51.9) | |||||
Other | (0.3) | 5.8 | |||||
Net cash provided by operating activities | $ | 191.9 | $ | 75.2 | |||
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or |
(2) | Represents consolidated interest expense less non-cash interest expense. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Segment Adjusted EBITDA to Net | (Unaudited) | ||||||||||||||
Segment Adjusted EBITDA: | |||||||||||||||
Corporate Adjusted EBITDA | $ | (21.6) | $ | (23.1) | $ | (97.6) | $ | (97.5) | |||||||
Specialty products Adjusted EBITDA | $ | 48.9 | $ | 32.9 | $ | 220.2 | $ | 162.2 | |||||||
Fuel products Adjusted EBITDA | 26.5 | 43.9 | 182.0 | 199.2 | |||||||||||
Discontinued operations Adjusted EBITDA | — | 2.0 | — | — | |||||||||||
Total segment and discontinued operations Adjusted EBITDA | $ | 53.8 | $ | 55.7 | $ | 304.6 | $ | 263.9 | |||||||
Less: | |||||||||||||||
Unrealized (gain) loss on derivative instruments | $ | 5.9 | $ | (29.8) | $ | 26.1 | $ | (30.2) | |||||||
Debt extinguishment costs | 2.9 | — | 2.2 | 58.8 | |||||||||||
Amortization of turnaround costs | 2.8 | 4.1 | 19.3 | 12.8 | |||||||||||
Loss on impairment and disposal of assets | 5.9 | — | 37.0 | — | |||||||||||
Gain on sale of unconsolidated affiliate | — | — | (1.2) | — | |||||||||||
(Gain) loss on sale of business, net | 8.7 | 2.9 | 8.7 | (0.7) | |||||||||||
Other non-recurring expenses | 2.2 | — | 3.5 | — | |||||||||||
Equity-based compensation and other items | 1.3 | (3.7) | 7.4 | 4.0 | |||||||||||
EBITDA | $ | 24.1 | $ | 82.2 | $ | 201.6 | $ | 219.2 | |||||||
Less: | |||||||||||||||
Interest expense | $ | 35.4 | $ | 35.1 | $ | 134.6 | $ | 155.5 | |||||||
Depreciation and amortization | 27.5 | 29.3 | 110.1 | 118.1 | |||||||||||
Income tax (benefit) expense | (0.2) | (0.3) | 0.5 | 0.7 | |||||||||||
Net income (loss) | $ | (38.6) | $ | 18.1 | $ | (43.6) | $ | (55.1) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation of Segment Metrics Excluding | (Unaudited) | |||||||||||||||
Specialty Adjusted EBITDA | $ | 48.9 | $ | 32.9 | $ | 220.2 | $ | 162.2 | ||||||||
LCM inventory adjustments | (2.4) | 9.7 | (9.5) | 3.4 | ||||||||||||
LIFO inventory layer adjustments | (3.7) | 2.6 | (2.8) | 2.7 | ||||||||||||
Specialty Adjusted EBITDA (excluding LCM/LIFO) | $ | 42.8 | $ | 45.2 | $ | 207.9 | $ | 168.3 | ||||||||
Fuel Adjusted EBITDA | $ | 26.5 | $ | 43.9 | $ | 182.0 | $ | 199.2 | ||||||||
LCM inventory adjustments | 5.4 | 35.7 | (26.3) | 27.2 | ||||||||||||
LIFO inventory layer adjustments | (3.2) | 3.3 | (3.2) | 3.6 | ||||||||||||
Fuels Adjusted EBITDA (excluding LCM/LIFO) | $ | 28.7 | $ | 82.9 | $ | 152.5 | $ | 230.0 | ||||||||
Corporate Adjusted EBITDA | $ | (21.6) | $ | (23.1) | $ | (97.6) | $ | (97.5) | ||||||||
Total Adjusted EBITDA | $ | 53.8 | $ | 55.7 | $ | 304.6 | $ | 263.9 | ||||||||
LCM inventory adjustments | 3.0 | 45.4 | (35.8) | 30.6 | ||||||||||||
LIFO inventory layer adjustments | (6.9) | 5.9 | (6.0) | 6.3 | ||||||||||||
Total Adjusted EBITDA (excluding LCM/LIFO) | $ | 49.9 | $ | 107.0 | $ | 262.8 | $ | 300.8 | ||||||||
Specialty Gross Profit | $ | 69.2 | $ | 57.2 | $ | 324.8 | $ | 274.6 | ||||||||
LCM inventory adjustments | (2.2) | 9.1 | (9.3) | 3.4 | ||||||||||||
LIFO inventory layer adjustments | (3.7) | 2.6 | (2.8) | 2.7 | ||||||||||||
Specialty Gross Profit (excluding LCM/LIFO) | 63.3 | 68.9 | 312.7 | 280.7 | ||||||||||||
Fuel Gross Profit | $ | 21.6 | $ | 46.0 | $ | 126.9 | $ | 162.1 | ||||||||
LCM inventory adjustments | 5.4 | 33.5 | (26.3) | 27.2 | ||||||||||||
LIFO inventory layer adjustments | (3.2) | 3.3 | (3.2) | 3.6 | ||||||||||||
Fuel Gross Profit (excluding LCM/LIFO) | $ | 23.8 | $ | 82.8 | $ | 97.4 | $ | 192.9 | ||||||||
Reported Specialty gross profit per barrel | $ | 33.82 | $ | 26.57 | $ | 35.74 | $ | 31.41 | ||||||||
LCM/LIFO inventory adjustments per barrel | (2.88) | 5.43 | (1.33) | 0.70 | ||||||||||||
Specialty gross profit per barrel (excluding LCM/LIFO) | $ | 30.94 | $ | 32.00 | $ | 34.41 | $ | 32.11 | ||||||||
Reported Fuel gross profit per barrel | $ | 3.18 | $ | 6.80 | $ | 4.35 | $ | 6.07 | ||||||||
LCM/LIFO inventory adjustments per barrel | 0.32 | 5.44 | (1.01) | 1.15 | ||||||||||||
Fuel gross profit per barrel (excluding LCM/LIFO) | $ | 3.50 | $ | 12.24 | $ | 3.34 | $ | 7.22 | ||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net | (Unaudited) | |||||||||||||||
Net income (loss) | $ | (38.6) | $ | 18.1 | $ | (43.6) | $ | (55.1) | ||||||||
Add: | ||||||||||||||||
LCM inventory adjustments | 3.0 | 45.4 | (35.8) | 30.6 | ||||||||||||
LIFO inventory layer adjustments | (6.9) | 5.9 | (6.0) | 6.3 | ||||||||||||
Unrealized (gain) loss on derivative instruments | 5.9 | (29.8) | 26.1 | (30.2) | ||||||||||||
Loss from debt extinguishment | 2.9 | — | 2.2 | 58.8 | ||||||||||||
Loss on impairment and disposal of assets | 5.9 | — | 37.0 | — | ||||||||||||
Gain on sale of unconsolidated affiliate | — | — | (1.2) | — | ||||||||||||
(Gain) loss on sale of business, net | 8.7 | 2.9 | 8.7 | (0.7) | ||||||||||||
Equity based compensation and other non-cash items | 1.3 | (3.7) | 7.4 | 4.0 | ||||||||||||
Adjusted net income (loss) | $ | (17.8) | $ | 38.8 | $ | (5.2) | $ | 13.7 | ||||||||
Adjusted net income (loss) per unit | $ | (0.23) | $ | 0.50 | $ | (0.07) | $ | 0.18 | ||||||||
Average limited partner units - diluted | 78,332,671 | 78,218,831 | 78,212,136 | 77,943,992 | ||||||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
December 31, | |||||||
2019 | 2018 | ||||||
Reconciliation of Net Debt / LTM Adjusted EBITDA | (Unaudited) | ||||||
6.50% Senior Notes due 2021 | $ | — | $ | 900.0 | |||
7.625% Senior Notes due 2022 | 350.0 | 350.0 | |||||
7.75% Senior Notes due 2023 | 325.0 | 325.0 | |||||
11.00% Senior Notes due 2025 | 550.0 | — | |||||
Capital Leases | 2.7 | 42.4 | |||||
Other | 3.8 | 5.2 | |||||
Total Debt | $ | 1,231.5 | $ | 1,622.6 | |||
Less Cash | $ | 19.1 | $ | 155.7 | |||
Net Debt | $ | 1,212.4 | $ | 1,466.9 | |||
December 31, | |||||||
2019 | 2018 | ||||||
LTM Adjusted EBITDA (as reported) | $ | 304.6 | $ | 263.9 | |||
Net Debt / LTM Adjusted EBITDA (as reported) | 4.0x | 5.6x | |||||
LTM Adjusted EBITDA (excluding LCM/LIFO) | $ | 262.8 | $ | 300.8 | |||
Net Debt / LTM Adjusted EBITDA (excluding LCM/LIFO) | 4.6x | 4.9x | |||||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-fourth-quarter-and-year-end-2019-results-301017205.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/5/20201/27/2020 - Calumet Specialty Products Partners, L.P. Names Scott Obermeier to Executive Vice President, Commercial
Calumet Specialty Products Partners, L.P. Names Scott Obermeier to Executive Vice President, Commercial
Source: PR Newswire
INDIANAPOLIS, Jan. 27, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced the promotion of Scott Obermeier to the role of Executive Vice President, Commercial. In this new role, Obermeier will be focused on executing Calumet's commercial strategy and accelerating the Company's Specialty Products transformation. He will be responsible for leading Calumet's Base Oils, Solvents and Specialty Oils and Waxes business units as well as the corporate marketing, research and development and customer service functions. He will assume the duties of this position immediately.
"Scott's promotion is another strategic move that will help Calumet be more commercially focused as we continue to transition our portfolio toward specialty products," said Tim Go, Chief Executive Officer. "Scott's experience will help us deliver on our recently announced Self-Help Phase II priorities and allow us to expedite our Specialty Products growth strategy in 2020 and beyond."
Obermeier added, "I'm excited to take a lead role in Calumet's commercial transformation, and further leverage my expertise as we grow our core Specialty Products business. This new role will allow us to create long-term, mutually-beneficial value for Calumet and our customers by providing high-quality, innovative products, and exceptional service, as we continue our transformation to becoming the premier specialty petroleum products company in the market."
Obermeier has been a Vice President with Calumet since November 2017 and has more than 20 years of experience in sales and marketing as well as general management roles focused on the specialty chemicals market. Prior to his work with Calumet, he spent 10 years with Univar Solutions Inc., most recently serving as Vice President where he managed the global chemical distributor's organic chemicals business. Obermeier is a graduate of the University of Northern Iowa, with a degree in Chemistry Marketing.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-names-scott-obermeier-to-executive-vice-president-commercial-300993493.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
1/27/2020Calumet Specialty Products Partners, L.P. Launches 2020 Phase II Self-Help Initiatives Expected to Contribute Approximately $40 Million of Incremental Adjusted EBITDA
Source: PR Newswire
INDIANAPOLIS, Jan. 21, 2020 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today released details on its 2020 expectation for Phase II of its Self-Help program. This three-year program was launched in early 2019 following the successful completion of the Partnership's prior Phase I program that delivered $182 million of incremental Adjusted EBITDA from 2016 through 2018. Phase II of the program remains on track to deliver an expected $100 million of incremental Adjusted EBITDA from 2019 through 2021.
Strategic Highlights:
"Our Phase I and Phase II Self-Help efforts have delivered over $210 million in incremental Adjusted EBITDA since 2016, and these results have been instrumental in growing our bottom line profitability and providing an improved platform for future growth," said Tim Go, Chief Executive Officer of Calumet. "We plan to continue driving specialty products growth, as well as improving our transportation, logistics and procurement costs."
Go continued, "In 2020, we are prioritizing a number of strategic growth initiatives designed to accelerate our transformation, specifically in the lubricating oils and finished lubricants businesses. We believe these collective efforts and a stronger cultural focus on driving organic growth can help us deliver approximately $20 million of incremental Adjusted EBITDA in 2020."
Go concluded, "Lastly, given the divestiture of multiple non-core assets over the last few years and the improved business processes and data analytics resulting from our ERP conversion, we are engaged in reorganizing and realigning the corporate activities within our portfolio. These efforts are expected to result in an additional annual cost savings of approximately $20 million in Adjusted EBITDA. We look forward to updating our investors and other stakeholders on our progress on these goals throughout 2020."
Specialty Growth Initiatives
Specifically, there are three key workstreams that are expected to drive the $20 million of incremental Adjusted EBITDA this year in Specialty Products. The first is focused on the Partnership's Lubricating Oils business and includes debottleneck projects at the Princeton facility in the first quarter and another at the Shreveport facility, which was just completed in the fourth quarter of 2019. Additionally, Calumet has identified further opportunities to rationalize and replace lower margin businesses and tolling agreements to drive better margin capture in the future.
The second workstream is focused on the Partnership's Finished Lubricants & Chemicals business and includes debottleneck projects to meet increased demand for engineered fuels and capturing packaging line cost efficiencies.
The third workstream expected to contribute incremental Adjusted EBITDA is the Partnership's ongoing initiative to improve transportation, logistics, and procurement costs. We have identified further opportunities to drive costs lower, through the capturing of efficiencies and improvement of our logistics infrastructure much of which has been enabled through better leveraging of our ERP platform.
In total, these efforts are expected to help drive the Partnership to its near-term goals of Specialty Products segment Gross Profit per barrel of $40 and its EBITDA margins over 15%.
Cost Reduction Plan
Calumet has achieved many key milestones over the past five years, including divestitures of four non-core assets, integration of a new ERP system and recent re-segmentation of corporate G&A activities. We believe these achievements now allow the business to undertake a planned reduction in its G&A spending in 2020, which is expected to result in annual Adjusted EBITDA improvement of approximately $20 million.
The primary reductions will focus on reducing outside services, facility fixed costs, and corporate staffing. The Partnership expects to incur approximately $10 million in one-time costs over the course of 2020 to implement this program.
Non-GAAP Financial Measures
The preliminary expected forward-looking incremental Adjusted EBITDA contained in this press release is provided only on a non-GAAP basis due to the inherent difficulty of calculating items that would be included in Net income (loss) on a GAAP basis. As a result, reconciliation of forward-looking incremental Adjusted EBITDA to GAAP Net income (loss) is not available without unreasonable effort. These amounts that would require unreasonable effort to quantify could be significant, such that the amount of projected GAAP net income would vary substantially from the amount of projected incremental Adjusted EBITDA, and Calumet is unable to address the probable significance of information that is currently unavailable. It is expected that incremental Adjusted EBITDA, when reported, will reflect the exclusion of, among other things, interest expense, depreciation and amortization, and income taxes.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and transformation efforts, (ii) our expectation regarding expense reduction plans and (iii) statements regarding future Adjusted EBITDA contributions attributable to Phase II of our multi-year self-help program. 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 expectations for future operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions or dispositions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 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, including our latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
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.
View original content:SOURCE Calumet Specialty Products Partners, L.P.
Article Date
1/21/202012/10/2019 - Calumet Specialty Products Partners, L.P. To Attend Upcoming December Investor Conferences
Calumet Specialty Products Partners, L.P. To Attend Upcoming December Investor Conferences
Source: PR Newswire
INDIANAPOLIS, Dec. 10, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the Cowen & Company 9th Annual 2019 Energy Conference on Tuesday, December 10th, and the Wells Fargo 18th Annual Midstream and Utility Symposium on Wednesday, December 11th. Both conferences are taking place in New York, NY.
Management will provide an overview of the Company's business during a live presentation at the Cowen Energy Conference and will conduct one-on-one meetings with investors who are registered to attend each respective conference. The presentation slides can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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; and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-upcoming-december-investor-conferences-300972282.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
12/10/2019Calumet Specialty Products Partners, L.P. Announces Resolution to SEC Investigation
Source: PR Newswire
INDIANAPOLIS, Nov. 26, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet") a leading independent producer of specialty hydrocarbon and fuels products, today announced that it has reached a resolution with the Securities and Exchange Commission ("SEC") upon the conclusion of their investigation into certain disclosure controls, procedures, and internal controls.
"We are pleased that the investigation has concluded regarding the Company's disclosures and procedures," said Tim Go, Chief Executive Officer of Calumet Specialty Products Partners. "With this matter now behind us, we can focus all of our efforts on continuing our transformation, growing our core Specialty business and enhancing value for our partners and unitholders."
As part of the resolution to the investigation, the Partnership agreed to pay a fine of $250,000.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-resolution-to-sec-investigation-300965680.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/26/2019Calumet Specialty Products Partners, L.P. Reports Third Quarter 2019 Results
Source: PR Newswire
INDIANAPOLIS, Nov. 12, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," the "Company," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the third quarter ended September 30, 2019, as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||
Net loss | $ | (4.6) | $ | (16.5) | $ | (5.0) | $ | (73.2) | |||||||
Limited partners' interest basic and diluted net loss per unit | $ | (0.06) | $ | (0.21) | $ | (0.06) | $ | (0.92) | |||||||
Adjusted net income (loss) | $ | 7.1 | $ | (13.4) | $ | 12.6 | $ | (22.3) | |||||||
Adjusted net income (loss) per unit | $ | 0.09 | $ | (0.17) | $ | 0.16 | $ | (0.29) | |||||||
Adjusted EBITDA | $ | 73.5 | $ | 54.3 | $ | 250.8 | $ | 208.2 | |||||||
Adjusted EBITDA (excluding LCM/LIFO) | $ | 76.2 | $ | 57.0 | $ | 212.9 | $ | 193.8 | |||||||
The Partnership's $4.6 million of Net loss and $0.06 Net loss per unit for the third quarter 2019 included a $2.7 million unfavorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments, a $3.2 million non-cash loss on impairment and disposal of assets and a $5.4 million unrealized hedging loss. Excluding these and other non-cash charges, Adjusted net income and Adjusted net income per unit were $7.1 million and $0.09, respectively. The Partnership's $73.5 million of Adjusted EBITDA for the third quarter 2019 included a $2.7 million unfavorable net impact related to the non-cash LCM inventory adjustments. Excluding this impact, Adjusted EBITDA (excluding-LCM/LIFO) was $76.2 million.
For detailed information on the non-GAAP measures presented in this release and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"Calumet delivered a strong quarter of both financial and operational performance, generating $64 million of cash flow from operations," said Tim Go, Chief Executive Officer of Calumet. "Our quarterly Adjusted EBITDA results of $76 million (excluding LCM/LIFO) represented a 34% increase versus the prior year, driven in part by solid execution, the absence of the Princeton turnaround last year and Self-Help structural improvements. This improved operational performance drove record utilization and multiple throughput records across our plants. The Company has generated $154 million of cash flow from operations for the first nine months of 2019, much of which reflects the structural changes that our Self-Help program has delivered, which more than offset the headwinds of the significantly less favorable crude differentials. Calumet's financial metrics continue to improve, with our leverage ratio improving to 4.2x Net Debt to trailing twelve-month Adjusted EBITDA, down two full turns from 6.2x in last year's third quarter."
Go concluded, "In addition, Calumet continues to deliver on our key strategic objectives, most notably the refinancing of the Partnership's 2021 debt, as we pushed the maturity out to 2025. This improved debt maturity ladder and the overall reduction in leverage represent significant progress in Calumet's ongoing balance sheet improvement goals. Second, the Partnership recently announced the divestiture of the San Antonio refinery, which in addition to improving credit metrics, is expected to further improve Calumet's cash flow performance and reduce volatility in our earnings by reducing our exposure to commodity fuels markets. Finally, our Self-Help program captured an additional $6.3 million Adjusted EBITDA in the quarter, and $27.8 million Adjusted EBITDA during the first nine months of 2019."
Re-segmentation of Financial Results
Calumet reorganized its segments to add a corporate segment as of the third quarter 2019 and has modified its inter-segment transfer pricing from cost based to market-based pricing. The Corporate segment contains certain corporate costs and overhead that had previously been allocated to the Specialty and Fuels segments. Calumet believes these changes provide greater transparency and reflect how management views the business to drive improved operational performance. For the purposes of comparability, the Company has prepared all periods presented in this press release on the same basis.
Specialty Products Segment | Results Summary
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Specialty products segment gross profit | $ | 80.7 | $ | 68.4 | |||
Specialty products segment gross profit (excluding LCM/LIFO) | $ | 79.8 | $ | 69.1 | |||
Specialty products segment Adjusted EBITDA | $ | 52.5 | $ | 36.6 | |||
Specialty products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 51.6 | $ | 37.2 | |||
Specialty products segment gross profit per barrel | $ | 34.21 | $ | 32.33 | |||
Specialty products segment gross profit per barrel (excluding LCM/LIFO) | $ | 33.83 | $ | 32.66 | |||
Specialty products Adjusted EBITDA Margin | 14.8 | % | 10.5 | % | |||
Specialty products segment Adjusted EBITDA Margin (excluding LCM/LIFO) | 14.5 | % | 10.7 | % | |||
During the third quarter, Specialty products segment gross profit was $80.7 million and Adjusted EBITDA was $52.5 million, which included $0.9 million of favorable LCM adjustment. Excluding this non-cash adjustment, third quarter segment gross profit was $79.8 million and Adjusted EBITDA was $51.6 million, an increase of 15.5% and 38.7%, respectively, versus the third quarter of 2018. This year-over-year growth in Adjusted EBITDA was driven primarily by higher sales volume, record utilization and the absence of planned downtime that was present in the third quarter of 2018. Specialty products segment gross profit per barrel and Adjusted EBITDA Margin were $34.21 and 14.8%, respectively. Excluding the non-cash LCM adjustment, Specialty products segment gross profit per barrel was $33.83, an increase of 3.6% compared to the year-ago period, driven in part by the contributions from the business unit profitability plans implemented last year. Excluding the non-cash LCM adjustment, Specialty products segment Adjusted EBITDA Margin improved significantly to 14.8% compared to the year-ago period results of 10.5%, as the improvement in sales mix stemming from the continued rationalization of low-margin products, and the recent margin improvement in base oils, combined to increase margin capture versus the third quarter of 2018.
Fuel Products Segment | Results Summary
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Fuel products segment gross profit | $ | 37.1 | $ | 34.9 | |||
Fuel products segment gross profit (excluding LCM/LIFO) | $ | 40.7 | $ | 37.6 | |||
Fuel products segment Adjusted EBITDA | $ | 44.1 | $ | 41.9 | |||
Fuel products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 47.7 | $ | 44.0 | |||
Fuel products segment gross profit per barrel | $ | 4.72 | $ | 4.88 | |||
Fuel products segment gross profit per barrel (excluding LCM/LIFO) | $ | 5.18 | $ | 5.26 | |||
During the third quarter, Fuel products segment gross profit was $37.1 million, an increase of 6.3% compared to $34.9 million in the year-ago period, driven primarily by the record utilization and production volume growth as a result of our Self-Help and de-bottlenecking efforts. Gross profit per barrel was $4.72, a decrease of 3.3% compared to $4.88 in the year-ago period. Adjusted EBITDA of $44.1 million increased 5.3% compared to $41.9 million in last year's comparable quarter. Excluding the unfavorable impact of $3.6 million of non-cash LCM adjustments this quarter, Adjusted EBITDA was $47.7 million, up 8.4% compared to $44.0 million in the year-ago period. Self-Help benefits and business improvements helped drive this increase in year-over-year profitability on an absolute and a per-barrel basis despite the significant headwinds of less favorable crude differentials. Additionally, our fuel products business received "small refinery exemptions" under the Renewable Fuel standard for all three refineries during the quarter, contributing $11.0 million to business performance.
Partnership Liquidity
As of September 30, 2019, the Partnership had total liquidity of $437.7 million, comprised of $164.2 million of cash and $273.5 million of availability under the revolving credit facility. As of September 30, 2019, Calumet had a $343.6 million borrowing base, $70.1 million in outstanding standby letters of credit and no outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Full-Year 2019 Capital Spending Forecast
Through the third quarter of 2019, total capital spending was $53.9 million, primarily related to growth, maintenance and turnaround activity. For the full-year 2019 the Partnership's capital expenditures are expected to be near the upper end of the previously guided range of $80.0 million to $90.0 million.
Operations Summary
The following table sets forth information about the Partnership's combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In bpd) | |||||||||||
Total sales volume (1) | 111,022 | 100,793 | 107,670 | 97,150 | |||||||
Total feedstock runs (2) | 110,447 | 101,220 | 106,784 | 94,866 | |||||||
Facility production: (3) | |||||||||||
Specialty products: | |||||||||||
Lubricating oils | 11,937 | 11,716 | 11,872 | 11,840 | |||||||
Solvents | 7,493 | 7,728 | 7,580 | 7,812 | |||||||
Waxes | 1,440 | 1,106 | 1,416 | 1,172 | |||||||
Packaged and synthetic specialty products (4) | 1,384 | 2,052 | 1,667 | 2,314 | |||||||
Other | 2,037 | 3,106 | 1,626 | 2,305 | |||||||
Total | 24,291 | 25,708 | 24,161 | 25,443 | |||||||
Fuel products: | |||||||||||
Gasoline | 23,603 | 21,514 | 23,816 | 20,179 | |||||||
Diesel | 30,479 | 30,818 | 29,729 | 27,315 | |||||||
Jet fuel | 5,213 | 3,060 | 4,462 | 3,168 | |||||||
Asphalt, heavy fuel oils and other | 22,248 | 21,174 | 21,031 | 19,673 | |||||||
Total | 81,543 | 76,566 | 79,038 | 70,335 | |||||||
Total facility production (3) | 105,834 | 102,274 | 103,199 | 95,778 | |||||||
(1) | Total sales volume includes sales from the production at the Partnership's 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in the Partnership's fuel products segment sales. | |||||||||||
The increase in total sales volume for the three and nine months ended September 30, 2019, as compared to the same periods in 2018, is due primarily to improved plant utilization during 2019. | ||||||||||||
(2) | Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. | |||||||||||
The increase in total feedstock runs for the three and nine months ended September 30, 2019, as compared to the same periods in 2018, is due primarily to improved plant utilization. During 2018, turnaround activities at the Shreveport refinery and certain third-party processing facilities and maintenance activities negatively impacted our feedstock runs. | ||||||||||||
(3) | Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. | |||||||||||
The change in total facility production for the three and nine months ended September 30, 2019, as compared to the same periods in 2018, is due primarily to the operational items discussed above in footnote 2. | ||||||||||||
(4) | Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. | |||||||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on November 12, 2019 to discuss the financial and operational results for the third quarter of 2019. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 7678534. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company'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) 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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and strategic initiatives, and (iii) our ability to meet our financial commitments, debt service obligations, 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 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 acquisitions or dispositions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 Fuels Standard, including the prices paid for Renewable Identification Numbers; 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 and Quarterly Reports on Form 10-Q.
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.
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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) LCM inventory adjustments; and (i) the impact of liquidation of last-in, first-out ("LIFO") inventory layers.
Adjusted net income (loss) per unit: We define Adjusted net income (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA (excluding LCM/LIFO) for any period as Adjusted EBITDA excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We define Specialty products segment gross profit (excluding LCM/LIFO) for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We define Fuel products segment gross profit (excluding LCM/LIFO) for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Further, management and various investors use the ratio of Net debt (defined as total debt less cash) to Adjusted EBITDA, or "net debt leverage," as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. The metric "total debt less cash" includes borrowed long-term debt, letters of credit, and capital lease obligations, less cash.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this press release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"); our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015, and our 11.00% senior notes due April 15, 2025 (the "2025 Notes"), that were issued in October 2019. We are required to report Consolidated Cash Flow to the holders of our 2022 Notes, 2023 Notes and 2025 Notes and Adjusted 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit 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, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Adjusted EBITDA (excluding LCM/LIFO) do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted net income (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; and segment gross profit (excluding LCM/LIFO) to segment gross profit, 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, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sales | $ | 929.6 | $ | 953.5 | $ | 2,677.8 | $ | 2,649.5 | |||||||
Cost of sales | 811.8 | 850.2 | 2,316.9 | 2,313.7 | |||||||||||
Gross profit | 117.8 | 103.3 | 360.9 | 335.8 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 12.6 | 12.2 | 40.2 | 39.6 | |||||||||||
General and administrative | 32.8 | 29.2 | 105.5 | 95.5 | |||||||||||
Transportation | 28.4 | 36.4 | 95.9 | 99.7 | |||||||||||
Taxes other than income taxes | 5.7 | 5.9 | 15.5 | 13.2 | |||||||||||
Loss on impairment and disposal of assets | 3.2 | — | 31.1 | — | |||||||||||
Other operating (income) expense | 1.7 | (2.0) | 0.8 | (18.7) | |||||||||||
Operating income | 33.4 | 21.6 | 71.9 | 106.5 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (33.8) | (37.7) | (99.2) | (120.4) | |||||||||||
Gain (loss) from debt extinguishment | — | — | 0.7 | (58.8) | |||||||||||
Gain (loss) on derivative instruments | (5.0) | (2.7) | 14.4 | (2.0) | |||||||||||
Other | 1.3 | 3.2 | 7.9 | 5.6 | |||||||||||
Total other expense | (37.5) | (37.2) | (76.2) | (175.6) | |||||||||||
Net loss from continuing operations before income taxes | (4.1) | (15.6) | (4.3) | (69.1) | |||||||||||
Income tax expense from continuing operations | 0.5 | 0.4 | 0.7 | 1.0 | |||||||||||
Net loss from continuing operations | $ | (4.6) | $ | (16.0) | $ | (5.0) | $ | (70.1) | |||||||
Net loss from discontinued operations, net of tax | — | (0.5) | — | (3.1) | |||||||||||
Net loss | $ | (4.6) | $ | (16.5) | $ | (5.0) | $ | (73.2) | |||||||
Allocation of net loss: | |||||||||||||||
Net loss | $ | (4.6) | $ | (16.5) | $ | (5.0) | $ | (73.2) | |||||||
Less: | |||||||||||||||
General partner's interest in net loss | (0.1) | (0.4) | (0.1) | (1.5) | |||||||||||
Net loss available to limited partners | $ | (4.5) | $ | (16.1) | $ | (4.9) | $ | (71.7) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic and diluted | 78,299,472 | 77,783,879 | 78,174,976 | 77,643,006 | |||||||||||
Limited partners' interest basic and diluted net loss per unit: | |||||||||||||||
From continuing operations | $ | (0.06) | $ | (0.20) | $ | (0.06) | $ | (0.88) | |||||||
From discontinued operations | — | (0.01) | — | (0.04) | |||||||||||
Limited partners' interest | $ | (0.06) | $ | (0.21) | $ | (0.06) | $ | (0.92) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
September 30, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 164.2 | $ | 155.7 | |||
Accounts receivable, net | 240.7 | 198.0 | |||||
Inventories | 293.3 | 284.1 | |||||
Derivative assets | 0.8 | 18.3 | |||||
Prepaid expenses and other current assets | 11.5 | 13.9 | |||||
Total current assets | 710.5 | 670.0 | |||||
Property, plant and equipment, net | 1,050.1 | 1,098.1 | |||||
Investment in unconsolidated affiliates | 5.7 | 25.4 | |||||
Goodwill | 171.4 | 171.4 | |||||
Other intangible assets, net | 75.4 | 88.0 | |||||
Operating lease right-of-use assets | 110.5 | — | |||||
Other noncurrent assets, net | 37.7 | 34.6 | |||||
Total assets | $ | 2,161.3 | $ | 2,087.5 | |||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 270.2 | $ | 200.6 | |||
Accrued interest payable | 40.9 | 30.7 | |||||
Accrued salaries, wages and benefits | 31.9 | 25.7 | |||||
Other taxes payable | 21.2 | 15.2 | |||||
Obligations under inventory financing agreements | 117.0 | 105.3 | |||||
Other current liabilities | 70.4 | 33.8 | |||||
Current portion of operating lease liabilities | 62.3 | — | |||||
Current portion of long-term debt | 123.5 | 3.8 | |||||
Total current liabilities | 737.4 | 415.1 | |||||
Pension and postretirement benefit obligations | 4.5 | 4.5 | |||||
Other long-term liabilities | 1.5 | 1.5 | |||||
Long-term operating lease liabilities | 48.9 | — | |||||
Long-term debt, less current portion | 1,306.2 | 1,600.7 | |||||
Total liabilities | 2,098.5 | 2,021.8 | |||||
Commitments and contingencies | |||||||
Partners' capital: | |||||||
Partners' capital | 70.3 | 74.4 | |||||
Accumulated other comprehensive loss | (7.5) | (8.7) | |||||
Total partners' capital | 62.8 | 65.7 | |||||
Total liabilities and partners' capital | $ | 2,161.3 | $ | 2,087.5 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
Nine Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net loss | $ | (5.0) | $ | (73.2) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Net loss from discontinued operations | — | 3.1 | |||||
Depreciation and amortization | 82.6 | 88.8 | |||||
Amortization of turnaround costs | 16.5 | 8.7 | |||||
Non-cash interest expense | 4.9 | 6.1 | |||||
(Gain) loss on debt extinguishments | (0.7) | 58.8 | |||||
Unrealized (gain) loss on derivative instruments | 20.2 | (0.4) | |||||
Equity based compensation | 4.9 | 2.8 | |||||
Lower of cost or market inventory adjustment | (38.8) | (12.0) | |||||
Loss on impairment and disposal of assets | 31.1 | — | |||||
Operating lease expense | 57.1 | — | |||||
Operating lease payments | (57.1) | — | |||||
Other non-cash activities | (7.0) | (3.0) | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (49.8) | 29.0 | |||||
Inventories | 29.6 | (34.4) | |||||
Prepaid expenses and other current assets | 4.6 | (3.8) | |||||
Derivative activity | (0.4) | (0.4) | |||||
Turnaround costs | (16.8) | (11.1) | |||||
Other assets | — | — | |||||
Accounts payable | 61.7 | (32.5) | |||||
Accrued interest payable | 10.8 | (7.0) | |||||
Accrued salaries, wages and benefits | 2.6 | (4.5) | |||||
Other taxes payable | 6.0 | 8.5 | |||||
Other liabilities | (3.1) | (52.7) | |||||
Pension and postretirement benefit obligations | — | (0.1) | |||||
Net cash provided by (used in) operating activities | 153.9 | (29.3) | |||||
Investing activities | |||||||
Additions to property, plant and equipment | (27.4) | (41.3) | |||||
Investment in unconsolidated affiliate | — | (3.8) | |||||
Proceeds from sale of unconsolidated affiliate | 5.0 | 9.9 | |||||
Proceeds from sale of business, net | — | 44.8 | |||||
Proceeds from sale of property, plant and equipment | 3.7 | 0.3 | |||||
Net cash provided by discontinued investing activities | 5.0 | 3.6 | |||||
Net cash provided by (used in) investing activities | (13.7) | 13.5 | |||||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | — | 166.8 | |||||
Repayments of borrowings — revolving credit facility | — | (166.9) | |||||
Repayments of borrowings — senior notes | (137.3) | (400.0) | |||||
Payments on finance lease obligations | (0.9) | (2.2) | |||||
Proceeds from inventory financing agreements | 848.7 | 867.0 | |||||
Payments on inventory financing agreements | (840.7) | (850.6) | |||||
Proceeds from other financing obligations | — | 4.6 | |||||
Payments on other financing obligations | (1.6) | (2.3) | |||||
Payments on extinguishment of debt | — | (46.6) | |||||
Debt issuance costs | — | (2.9) | |||||
Contributions from Calumet GP, LLC | 0.1 | 0.1 | |||||
Net cash used in financing activities | (131.7) | (433.0) | |||||
Net increase (decrease) in cash and cash equivalents | 8.5 | (448.8) | |||||
Cash and cash equivalents at beginning of period | 155.7 | 514.3 | |||||
Cash and cash equivalents at end of period | $ | 164.2 | $ | 65.5 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||
NON-GAAP RECONCILIATIONS | ||||||||||||||
RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | ||||||||||||||
(In millions) | ||||||||||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | (Unaudited) | |||||||||||||
Net loss | $ | (4.6) | $ | (16.5) | $ | (5.0) | $ | (73.2) | ||||||
Add: | ||||||||||||||
Interest expense | 33.8 | 37.7 | 99.2 | 120.4 | ||||||||||
Depreciation and amortization | 27.4 | 29.6 | 82.6 | 88.8 | ||||||||||
Income tax expense | 0.5 | 0.4 | 0.7 | 1.0 | ||||||||||
EBITDA | $ | 57.1 | $ | 51.2 | $ | 177.5 | $ | 137.0 | ||||||
Add: | ||||||||||||||
Unrealized (gain) loss on derivative | $ | 5.4 | $ | 2.4 | $ | 20.2 | $ | (0.4) | ||||||
Realized loss on derivatives, not included in | — | 0.7 | — | 2.8 | ||||||||||
Amortization of turnaround costs | 6.1 | 2.7 | 16.5 | 8.7 | ||||||||||
(Gain) loss from debt extinguishment | — | — | (0.7) | 58.8 | ||||||||||
Gain on sale of unconsolidated affiliate (3) | — | — | (1.2) | — | ||||||||||
Loss on impairment and disposal of assets | 3.2 | — | 31.1 | — | ||||||||||
Equity based compensation and other items | 0.4 | (2.7) | 6.1 | 1.3 | ||||||||||
Other non-recurring expenses | 1.3 | — | 1.3 | — | ||||||||||
Adjusted EBITDA | $ | 73.5 | $ | 54.3 | $ | 250.8 | $ | 208.2 | ||||||
Less: | ||||||||||||||
Replacement and environmental capital | $ | 13.4 | $ | 4.4 | $ | 27.0 | $ | 16.0 | ||||||
Cash interest expense (2) | 32.4 | 36.0 | 94.3 | 114.3 | ||||||||||
Turnaround costs | 10.4 | 3.5 | 16.8 | 11.1 | ||||||||||
Income (loss) from unconsolidated affiliates (3) | — | — | 3.8 | (3.7) | ||||||||||
Income tax expense | 0.5 | 0.4 | 0.7 | 1.0 | ||||||||||
Distributable Cash Flow | $ | 16.8 | $ | 10.0 | $ | 108.2 | $ | 69.5 | ||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH | ||||||
(In millions) | ||||||
Nine Months Ended September 30, | ||||||
2019 | 2018 | |||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to | (Unaudited) | |||||
Distributable Cash Flow | $ | 108.2 | $ | 69.5 | ||
Add: | ||||||
Replacement and environmental capital expenditures (1) | 27.0 | 16.0 | ||||
Cash interest expense (2) | 94.3 | 114.3 | ||||
Turnaround costs | 16.8 | 11.1 | ||||
Income (loss) from unconsolidated affiliates (3) | 3.8 | (3.7) | ||||
Income tax expense | 0.7 | 1.0 | ||||
Adjusted EBITDA | $ | 250.8 | $ | 208.2 | ||
Less: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 20.2 | $ | (0.4) | ||
Realized loss on derivatives, not included in net loss or settled in a prior | — | 2.8 | ||||
Amortization of turnaround costs | 16.5 | 8.7 | ||||
(Gain) loss from debt extinguishment | (0.7) | 58.8 | ||||
Gain on sale of unconsolidated affiliate (3) | (1.2) | — | ||||
Loss on impairment and disposal of assets | 31.1 | — | ||||
Equity based compensation and other items | 6.1 | 1.3 | ||||
Other non-recurring expenses | 1.3 | — | ||||
EBITDA | $ | 177.5 | $ | 137.0 | ||
Add: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 20.2 | $ | (0.4) | ||
Cash interest expense (2) | (94.3) | (114.3) | ||||
Equity based compensation | 4.9 | 2.8 | ||||
Lower of cost or market inventory adjustment | (38.8) | (12.0) | ||||
(Income) loss from unconsolidated affiliates (3) | (3.8) | 3.7 | ||||
Gain on sale of unconsolidated affiliates (3) | (1.2) | — | ||||
Amortization of turnaround costs | 16.5 | 8.7 | ||||
(Gain) loss from debt extinguishment | (0.7) | 58.8 | ||||
Operating lease expense | 57.1 | — | ||||
Operating lease payments | (57.1) | — | ||||
Loss on impairment and disposal of assets | 31.1 | — | ||||
Income tax expense | (0.7) | (1.0) | ||||
Changes in assets and liabilities: | ||||||
Accounts receivable | (49.8) | 29.0 | ||||
Inventories | 29.6 | (34.4) | ||||
Other current assets | 4.6 | (3.8) | ||||
Derivative activity | (0.4) | (0.4) | ||||
Turnaround costs | (16.8) | (11.1) | ||||
Other assets | — | — | ||||
Accounts payable | 61.7 | (32.5) | ||||
Accrued interest payable | 10.8 | (7.0) | ||||
Other current liabilities | 5.5 | (48.7) | ||||
Other | (2.0) | (3.7) | ||||
Net cash provided by (used in) operating activities | $ | 153.9 | $ | (29.3) | ||
(1) | 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. | |||||||||
(2) | Represents consolidated interest expense less non-cash interest expense. | |||||||||
(3) | In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. The initial cash investment of $3.8 million made by the Company into Biosyn was expensed in the period ended March 31, 2018 given Biosyn's operations were all related to research and development. The Company accounts for its ownership in Biosyn under the equity method of accounting. During March 2019, the Company sold its investment to The Heritage Group and recognized a gain of $5.0 million. For comparability purposes, $3.8 million of the gain is included in Adjusted EBITDA for the nine months ended September 30, 2019. | |||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | |||||||
(In millions) | |||||||
Three Months Ended September 30, | |||||||
2019 | 2018 | ||||||
Reconciliation of Segment Adjusted EBITDA to EBITDA and Net loss: | (Unaudited) | ||||||
Segment Adjusted EBITDA | |||||||
Specialty products Adjusted EBITDA | $ | 52.5 | $ | 36.6 | |||
Fuel products Adjusted EBITDA | 44.1 | 41.9 | |||||
Corporate Adjusted EBITDA | (23.1) | (24.0) | |||||
Discontinued operations Adjusted EBITDA | — | (0.2) | |||||
Total segment Adjusted EBITDA | $ | 73.5 | $ | 54.3 | |||
Less: | |||||||
Unrealized loss on derivative instruments | $ | 5.4 | $ | 2.4 | |||
Realized loss on derivatives, not included in net loss or settled in a prior | — | 0.7 | |||||
Amortization of turnaround costs | 6.1 | 2.7 | |||||
Loss on impairment and disposal of assets | 3.2 | — | |||||
Equity based compensation and other items | 0.4 | (2.7) | |||||
Other non-recurring expenses | 1.3 | — | |||||
EBITDA | $ | 57.1 | $ | 51.2 | |||
Less: | |||||||
Interest expense | $ | 33.8 | $ | 37.7 | |||
Depreciation and amortization | 27.4 | 29.6 | |||||
Income tax expense | 0.5 | 0.4 | |||||
Net loss | $ | (4.6) | $ | (16.5) | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
RECONCILIATION OF SEGMENT METRICS EXCLUDING LCM/LIFO | |||||||||||||||
(In millions, except per barrel data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Segment Metrics Excluding | (Unaudited) | ||||||||||||||
Specialty products segment Adjusted EBITDA | $ | 52.5 | $ | 36.6 | $ | 171.3 | $ | 129.3 | |||||||
LCM inventory adjustments | (0.9) | 0.5 | (7.1) | (6.3) | |||||||||||
LIFO inventory layer adjustments | — | 0.1 | 0.9 | 0.1 | |||||||||||
Specialty products segment Adjusted EBITDA (excluding | $ | 51.6 | $ | 37.2 | $ | 165.1 | $ | 123.1 | |||||||
Fuel products segment Adjusted EBITDA | $ | 44.1 | $ | 41.9 | $ | 155.5 | $ | 155.3 | |||||||
LCM inventory adjustments | 3.6 | 1.8 | (31.7) | (8.5) | |||||||||||
LIFO inventory layer adjustments | — | 0.3 | — | 0.3 | |||||||||||
Fuel products segment Adjusted EBITDA (excluding | $ | 47.7 | $ | 44.0 | $ | 123.8 | $ | 147.1 | |||||||
Corporate segment Adjusted EBITDA | (23.1) | (24.0) | (76.0) | (74.4) | |||||||||||
Continuing Operations Adjusted EBITDA | 73.5 | 54.5 | 250.8 | 210.2 | |||||||||||
Discontinued Operations Adjusted EBITDA | — | (0.2) | — | (2.0) | |||||||||||
Total Adjusted EBITDA | 73.5 | 54.3 | 250.8 | 208.2 | |||||||||||
LCM inventory adjustments | 2.7 | 2.3 | (38.8) | (14.8) | |||||||||||
LIFO inventory layer adjustments | — | 0.4 | 0.9 | 0.4 | |||||||||||
Total Adjusted EBITDA (excluding LCM/LIFO) | $ | 76.2 | $ | 57.0 | $ | 212.9 | $ | 193.8 | |||||||
Specialty products segment gross profit | $ | 80.7 | $ | 68.4 | $ | 255.6 | $ | 217.4 | |||||||
LCM inventory adjustments | (0.9) | 0.6 | (7.1) | (5.7) | |||||||||||
LIFO inventory layer adjustments | — | 0.1 | 0.9 | 0.1 | |||||||||||
Specialty products segment gross profit (excluding | $ | 79.8 | $ | 69.1 | $ | 249.4 | $ | 211.8 | |||||||
Fuel products segment gross profit | $ | 37.1 | $ | 34.9 | $ | 105.3 | $ | 118.4 | |||||||
LCM inventory adjustments | 3.6 | 2.4 | (31.7) | (6.3) | |||||||||||
LIFO inventory layer adjustments | — | 0.3 | — | 0.3 | |||||||||||
Fuel products segment gross profit (excluding | $ | 40.7 | $ | 37.6 | $ | 73.6 | $ | 112.4 | |||||||
Reported Specialty products segment gross profit per | $ | 34.21 | $ | 32.33 | $ | 36.30 | $ | 32.99 | |||||||
LCM/LIFO inventory adjustments per barrel | (0.38) | 0.33 | (0.88) | (0.85) | |||||||||||
Specialty products segment gross profit per barrel | $ | 33.83 | $ | 32.66 | $ | 35.42 | $ | 32.14 | |||||||
Reported Fuel products segment gross profit per barrel | $ | 4.72 | $ | 4.88 | $ | 4.71 | $ | 5.94 | |||||||
LCM/LIFO inventory adjustments per barrel | 0.46 | 0.38 | (1.42) | (0.30) | |||||||||||
Fuel products segment gross profit per barrel (excluding | $ | 5.18 | $ | 5.26 | $ | 3.29 | $ | 5.64 | |||||||
(1) In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. The initial cash investment of $3.8 million made by the Company into Biosyn was expensed in the period ended March 31, 2018 given Biosyn's operations were all related to research and development. The Company accounts for its ownership in Biosyn under the equity method of accounting. During March 2019, the Company sold its investment to The Heritage Group and recognized a gain of $5.0 million. For comparability purposes, $3.8 million of the gain is included in Adjusted EBITDA for the nine months ended September 30, 2019.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED NET INCOME (LOSS) | |||||||||||||||
(In millions, except per unit data) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Reconciliation of Net Loss to Adjusted Net Income (Loss) | (Unaudited) | ||||||||||||||
Net loss | $ | (4.6) | $ | (16.5) | $ | (5.0) | $ | (73.2) | |||||||
Add: | |||||||||||||||
LCM inventory adjustments | 2.7 | 2.3 | (38.8) | (12.0) | |||||||||||
LIFO inventory layer adjustments | — | 0.4 | 0.9 | 0.4 | |||||||||||
Unrealized (gain) loss on derivative instruments | 5.4 | 2.4 | 20.2 | (0.4) | |||||||||||
Realized loss on derivatives, not included in net loss or | — | 0.7 | — | 2.8 | |||||||||||
(Gain) loss from debt extinguishment | — | — | (0.7) | 58.8 | |||||||||||
Gain on sale of unconsolidated affiliate (1) | — | — | (1.2) | — | |||||||||||
Loss on impairment and disposal of assets | 3.2 | — | 31.1 | — | |||||||||||
Equity based compensation and other non-cash items | 0.4 | (2.7) | 6.1 | 1.3 | |||||||||||
Adjusted net income (loss) | $ | 7.1 | $ | (13.4) | $ | 12.6 | $ | (22.3) | |||||||
Adjusted net income (loss) per unit | $ | 0.09 | $ | (0.17) | $ | 0.16 | $ | (0.29) | |||||||
Average limited partner units - diluted | 78,299,472 | 77,783,879 | 78,174,976 | 77,643,006 | |||||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
RECONCILIATION OF NET DEBT / LTM ADJUSTED EBITDA | |||||||
(Dollars in millions) | |||||||
September 30, | |||||||
2019 | 2018 | ||||||
Reconciliation of Net Debt / LTM Adjusted EBITDA | (Unaudited) | ||||||
6.50% Senior Notes due 2021 | $ | 761.2 | $ | 900.0 | |||
7.625% Senior Notes due 2022 | 350.0 | 350.0 | |||||
7.75% Senior Notes due 2023 | 325.0 | 325.0 | |||||
Capital Leases | 2.8 | 41.8 | |||||
Other | 4.1 | 5.6 | |||||
Total Debt | $ | 1,443.1 | $ | 1,622.4 | |||
Less Cash | $ | 164.2 | $ | 65.5 | |||
Net Debt | $ | 1,278.9 | $ | 1,556.9 | |||
September 30, | |||||||
2019 | 2018 | ||||||
LTM Adjusted EBITDA (as reported) | $ | 306.5 | $ | 249.4 | |||
Net Debt / LTM Adjusted EBITDA (as reported) | 4.2 | x | 6.2 | x | |||
LTM Adjusted EBITDA (excluding LCM/LIFO) | $ | 319.9 | 223.8 | ||||
Net Debt / LTM Adjusted EBITDA (excluding LCM/LIFO) | 4.0 | x | 7.0 | x | |||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-third-quarter-2019-results-300956349.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/12/201911/11/2019 - Calumet Specialty Products Partners, L.P. Announces Strategic Divestiture of San Antonio Refinery and Related Assets
Calumet Specialty Products Partners, L.P. Announces Strategic Divestiture of San Antonio Refinery and Related Assets
Source: PR Newswire
INDIANAPOLIS, Nov. 11, 2019 /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 closed on the sale of its San Antonio, Texas refinery and related assets including a crude oil terminal and pipeline to Starlight Relativity Acquisition Company LLC ("Starlight") with an effective date of November 1, 2019. Starlight agreed to pay $63 million in cash for the plant, property and equipment, plus adjustments for net working capital, inventories and post-closing amounts. In a related transaction, Calumet entered into a Settlement and Release Agreement with TexStar Midstream Logistics, L.P. ("TexStar") settling all outstanding litigation between the two parties which will result in the release of a $38 million balance sheet liability.
Transaction Highlights:
"The divestment of the San Antonio refinery represents another step forward in Calumet's strategic transformation," said Tim Go, Chief Executive Officer of Calumet. "This transaction further de-levers Calumet's balance sheet, reduces earnings volatility by lowering our exposure to fuels refining, and allows the Partnership to focus its time and capital more intently on our higher-return core Specialty Products business."
Go concluded, "I want to thank our employees at San Antonio for their continued hard work and dedication, particularly this past year where they have delivered significant improvement to both our operational and financial performance. These step-change improvements made this transaction a win for our employees, Calumet, Starlight and the community, and we are pleased to see that the San Antonio refinery and its employees have found a new home for the long-term."
Evercore acted as general advisor and Vinson & Elkins L.L.P. acted as legal advisor. The Partnership will provide further information with respect to the transaction in a Current Report on Form 8-K, which will include pro forma financial statements reflecting the impact of the transaction.
About the San Antonio Refinery
The San Antonio refinery has permitted capacity of 21,000 barrels per day, processing crude oil and condensate primarily from the Eagle Ford basin. The refinery currently produces LPG, naphtha, regular and premium gasoline, commercial and military jet fuel, ultra-low sulfur diesel and Atmospheric Tower Bottoms. There are approximately 250,000 barrels of storage capacity at the refinery and approximately 200,000 barrels of additional crude oil storage capacity at a crude oil terminal located in Elmendorf, Texas.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates ten manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
About Starlight Relativity Acquisition Company LLC
Starlight Relativity Acquisition Company LLC holds all of the membership interests of The San Antonio Refinery LLC, a Delaware limited liability company (f/k/a Calumet San Antonio Refining, LLC), and is the owner of the San Antonio refinery. The San Antonio refinery will be operated by Lazarus Energy Holdings LLC, a Delaware limited liability company and operator of a 15,000 barrels per day crude distillation facility with approximately 1.2 million barrels of storage capacity owned by Blue Dolphin Energy Company, a Delaware corporation and located nearby in Nixon, Texas.
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, our ability to achieve the strategic and other objectives relating to the 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. For 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 , 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-strategic-divestiture-of-san-antonio-refinery-and-related-assets-300955434.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/11/201911/7/2019 - Calumet Specialty Products Partners, L.P. to Release Third Quarter 2019 Results on November 12th
Calumet Specialty Products Partners, L.P. to Release Third Quarter 2019 Results on November 12th
Source: PR Newswire
INDIANAPOLIS, Nov. 6, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it plans to report results for the fiscal third quarter ended September 30, 2019 on November 12, 2019. A conference call to discuss the financial and operational results is scheduled for November 12, 2019 at 9:00 AM ET.
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 https://edge.media-server.com/mmc/p/a2ruzkif. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the conference ID 7678534. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-third-quarter-2019-results-on-november-12th-300953400.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/7/2019Calumet Specialty Products Partners, L.P. Announces the Appointment of H. Keith Jennings as Executive Vice President and Chief Financial Officer
Source: PR Newswire
INDIANAPOLIS, Oct. 28, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet") a leading independent producer of specialty hydrocarbon and fuels products, has named H. Keith Jennings as the Partnership's Executive Vice President (EVP) & Chief Financial Officer (CFO). Jennings will assume EVP and CFO duties on January 1, 2020 following an orderly transition with the current EVP & CFO, West Griffin, who announced he will leave the organization effective January 1, 2020. As CFO, Jennings will help execute Calumet's ongoing transformation strategy to become a premier specialty products company. He will lead all treasury, accounting, tax, IT and capital market activities and be charged with managing the partnership's balance sheet and improving its corporate finance capabilities.
Tim Go, Chief Executive Officer, said, "We are excited to welcome Keith to Calumet and believe that he brings a deep skillset to our finance team as well as strong corporate finance experience in the global specialty chemicals sector. Keith's experience, acumen, and insights are going to be highly-valued as we continue to transition Calumet's portfolio towards specialty chemicals products, and his appointment to the CFO role marks another step forward in our greater transformation as a company."
Keith Jennings added, "I am excited to be joining the Calumet team, the organization has strong momentum and has repositioned itself for long-term growth towards becoming a specialty chemicals company. This is a great opportunity to apply my experience to help advance Calumet's vision. In my role as CFO, I will drive our continued deleveraging and balance sheet improvement efforts, bring an additional process improvement mindset, while also applying my industry background as we look to grow the Partnership's core specialty business."
Jennings has over 25 years of financial experience, including specialty chemicals experience. Jennings joins Calumet from Eastman Chemical Company where he served most recently as Vice President, Finance responsible for leading all financial planning and analysis activity for the company. Prior to this, he served as Vice President and Treasurer for Eastman, having responsibility for developing long-term financing strategies. Prior to this, Jennings was Vice President and Treasurer of Cameron International Corporation and managed the global integration of Cameron's finance function during the successful merger with Schlumberger Limited. Earlier in his career, Jennings held progressively responsible finance leadership roles in Alghanim Industries, PepsiCo, Inc., Ingersoll-Rand and Pharmacia. Jennings holds a Bachelor of Commerce Degree from the University of Toronto and an MBA from Columbia University.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-the-appointment-of-h-keith-jennings-as-executive-vice-president-and-chief-financial-officer-300945964.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
10/28/2019Calumet Specialty Products Partners, L.P. Announces Closing of $550 Million Offering of Senior Unsecured Notes due 2025
Source: PR Newswire
INDIANAPOLIS, Oct. 11, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced that it has successfully completed a $550 million offering of new senior unsecured notes maturing in 2025 (the "Offering").
Transaction Highlights:
"We are very pleased to complete the refinancing of our near-term debt," stated Tim Go, Chief Executive Officer of Calumet. "The refinancing of our 2021 notes successfully addresses the remaining $761 million of the original $900 million of 2021 notes and reflects the continued support of our investors in our ongoing transformation efforts."
West Griffin, Chief Financial Officer of Calumet continued, "Completing the refinancing of Calumet's largest and most near-dated debt obligation marks meaningful progress in our efforts to improve our balance sheet. Not only are the economics of the transaction nearly breakeven to the Company's cash flows, but by successfully issuing in the unsecured market, Calumet will have more options to address future debt maturities. Additionally, by staying in the unsecured market, the Company has protected its improved credit ratings and preserved important strategic gains such as improved access to trade credit. Now that the transaction is complete, Calumet can look towards the next step to enhancing its balance sheet and capital structure, and we look forward to continuing the positive momentum of our transformation."
Following this closing of the new 2025 notes, and with all other conditions having been met, the previously-announced expansion of Calumet's borrowing base under its asset-based revolving loan facility (the "ABL" or the "facility") went into effect. Accordingly, the Company borrowed $99.5 million under the facility, the proceeds of which, together with proceeds from the offering of the new notes and cash on hand, will be used to retire the 2021 notes. This LIBOR-based revolving loan accrues interest at LIBOR plus 150 basis points. Closing of the redemption of the 2021 notes is scheduled to occur on October 21, 2019.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 our expectations regarding our anticipated redemption of our 2021 notes and refinancing of our 2022 notes and 2023 notes as well as statements regarding our business outlook and cash flows. 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 materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-closing-of-550-million-offering-of-senior-unsecured-notes-due-2025-300937352.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
10/11/2019Calumet Specialty Products Partners, L.P. Announces Pricing of $550 Million Private Placement of 11.00% Senior Notes due 2025
Source: PR Newswire
INDIANAPOLIS, Sept. 27, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") and its wholly-owned subsidiary Calumet Finance Corp. announced today the pricing of their private placement (the "Offering") under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), of $550 million in aggregate principal amount of 11.00% senior unsecured notes due 2025 (the "2025 Notes"). The notes mature on April 15, 2025 and will be issued at par. The Offering is expected to close on October 11, 2019, subject to customary closing conditions.
Calumet intends to use the net proceeds from the Offering, together with borrowings under its revolving credit facility and cash on hand, to fund the previously announced redemption of all of its outstanding 6.50% Senior Notes due 2021 (the "2021 Notes").
The securities to be sold have not been registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Calumet plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful.
About Calumet Specialty Products Partners, L.P.
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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates 11 manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 the Offering and the use of proceeds therefrom and the conditional redemption of our 2021 Notes. 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 materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-pricing-of-550-million-private-placement-of-11-00-senior-notes-due-2025--300927097.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
9/27/2019Calumet Specialty Products Partners, L.P. Announces Planned CFO Transition
Source: PR Newswire
INDIANAPOLIS, Sept. 20, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced that West Griffin, the Company's Chief Financial Officer (CFO) since January 2017, will be leaving his role as CFO by the end of the year. Griffin is expected to complete the remaining major milestones associated with his position in the next few months. Griffin has agreed to serve in a consulting role through the closing of the financial process for fiscal 2019 to ensure an orderly transition to the next CFO. The Company is nearing the conclusion of its search process for a new CFO with a strong finance and chemicals background who can help guide Calumet through the next phase of its transformation.
Mr. Griffin said, "When I took this position three years ago, Tim Go, Calumet's CEO, and the Board asked me to help turn the Company around, improve its financial position, rebuild its financial team and processes, and help the organization refocus on its core specialties business. When I arrived, the Company had negative cash flow and its most recently reported net-debt-to-EBITDA leverage ratio was 22 times. Calumet is now cash flow positive and its leverage ratio has been reduced to 4.6 times as of the end of the second quarter. In addition to reducing its leverage profile, today the Company separately announced that it is taking the next step to address near term maturities on its balance sheet. We expect to achieve the targets initially established for my tenure within the next few months. Thus, it's the appropriate time for me to transition my responsibilities to a successor that can guide the Company through its next phase of transformative growth."
Tim Go, Calumet's Chief Executive Officer commented, "West had an immediate impact on the business and helped me steward the turnaround of the Company. Since coming on board, he put in place our supply and offtake agreement that helped stabilize our liquidity, rebuilt our internal financial team and processes, navigated us through the challenging implementation of our ERP system, and has now positioned the Company to pursue the refinancing of its 2021 Notes. We have gotten to where we are today in large part due to West's dedication and sacrifice to ensure the success of Calumet, and I want to thank him for all of his hard work and leadership."
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 our expectation regarding our expectation regarding our business outlook and planned refinancing of our 2021 Notes. 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 materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
Non-GAAP Financial Measures
This press release includes a reference to EBITDA, a non‐GAAP financial measure, which we define as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization. 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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics. EBITDA should not be considered alternatives to Net income (loss) or any other measure of financial performance presented in accordance with GAAP.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-planned-cfo-transition-300922332.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
9/20/2019Calumet Specialty Products Partners, L.P. Announces $550 Million Private Placement of Senior Notes Due 2025 and Issues Notice of Conditional Redemption for its 6.50% Senior Notes due 2021
Source: PR Newswire
INDIANAPOLIS, Sept. 20, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") and its wholly-owned subsidiary Calumet Finance Corp. announced today that, subject to market conditions, they intend to offer (the "Offering") for sale to eligible purchasers in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), $550 million in aggregate principal amount of senior unsecured notes due April 2025 (the "2025 Notes"). Calumet intends to use the net proceeds from the Offering, together with borrowings under its revolving credit facility and cash on hand, to fund the redemption of all of its outstanding 6.50% senior notes due 2021 (the "2021 Notes").
Calumet also announced today that it has delivered a notice of conditional redemption for all of the 2021 Notes at a redemption price of par, plus accrued and unpaid interest to but not including the Redemption Date (the "Redemption Price"). The redemption date for the 2021 Notes provided in the notice of conditional full redemption is October 21, 2019 (the "Redemption Date"). Calumet's obligation to redeem the 2021 Notes is conditioned upon, on or before the Redemption Date, the completion of an offering of at least $550 million principal amount of Calumet's senior debt securities and the satisfaction of all conditions precedent to the effectiveness of the amendment to the Partnership's revolving credit facility, dated as of September 4, 2019. Calumet will publicly announce and notify the holders of the 2021 Notes and the Trustee (as defined below) if any of the foregoing conditions are not satisfied, whereupon the redemption will be revoked and the 2021 Notes will remain outstanding.
Wilmington Trust, National Association is the trustee (the "Trustee") for the 2021 Notes and is serving as the paying agent for the redemption. Copies of the notice of redemption and additional information relating to the redemption of the 2021 Notes may be obtained from Wilmington Trust, National Association, Corporate Capital Markets, 50 South Sixth Street, Suite 1290, Minneapolis, Minnesota 55402, Attention: Calumet Specialty Products Partners Administrator.
The securities to be offered have not been registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Calumet plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
About Calumet Specialty Products Partners, L.P.
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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates 11 manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." 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 the Offering and the use of proceeds therefrom and the conditional redemption of our 2021 Notes. 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 materially from our historical experience and our present expectations. For additional information regarding known material risks, uncertainties and other factors that can affect future results, please see our filings with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. 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.
View original content:SOURCE Calumet Specialty Products Partners, L.P.
Article Date
9/20/2019Calumet Specialty Products Partners, L.P. Reports Second Quarter 2019 Results
Source: PR Newswire
INDIANAPOLIS, Aug. 8, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," the "Company," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the second quarter ended June 30, 2019, as follows:
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
(Dollars in millions, except per unit data) | ||||||||||||
Net loss | $ | (16.8) | $ | (51.9) | $ | (0.4) | $ | (56.7) | ||||
Limited partners' interest basic and diluted net loss per unit | $ | (0.21) | $ | (0.65) | $ | — | $ | (0.71) | ||||
Adjusted net income (loss) | $ | 16.6 | $ | (0.8) | $ | 15.9 | $ | (3.6) | ||||
Adjusted income (loss) per unit | $ | 0.21 | $ | (0.01) | $ | 0.20 | $ | (0.05) | ||||
Adjusted EBITDA | $ | 79.6 | $ | 78.9 | $ | 177.3 | $ | 153.9 | ||||
Adjusted EBITDA (excluding LCM/LIFO) | $ | 77.0 | $ | 67.0 | $ | 136.7 | $ | 138.9 | ||||
The Partnership's $16.8 million of Net loss and $0.21 Net loss per unit for the second quarter 2019 included a $2.6 million favorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments, a $16.2 million non-cash loss on impairment and disposal of assets and a $12.2 million unrealized hedging loss. Excluding these and other non-cash charges, Adjusted net income and Adjusted net income per unit were $16.6 million and $0.21, respectively. The Partnership's $79.6 million of Adjusted EBITDA for the second quarter 2019 included a $2.6 million favorable net impact related to the non-cash LCM inventory adjustments. Excluding this impact, Adjusted EBITDA (excluding-LCM/LIFO) was $77.0 million.
For detailed information on the non-GAAP measures presented in this release and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"Calumet executed another solid quarter of operational and financial performance, resulting in significant de-leveraging results," said Tim Go, Chief Executive Officer of Calumet. "Solid execution against our strategy, combined with structural changes to how we manage our working capital and inventories, helped the Company generate over $62 million in cash flow from operations. We utilized the improving cash flow performance and enhanced liquidity position to opportunistically repurchase $67 million of aggregate principal amount of 2021 notes outstanding during the quarter, and $90 million of aggregate principal amount year to date. We intend to continue to make opportunistic open market repurchases utilizing our excess liquidity. Our trailing twelve-month Pro Forma Adjusted EBITDA (ex. LCM/LIFO) of $299 million was up 46% year-over-year, as the Company continues to capture benefits from the profitability plans put in place last year. Additionally, our solid quarterly performance continued to strengthen Calumet's balance sheet and reduced our Net debt/LTM Adjusted EBITDA to 4.6x, a meaningful step down from 4.9x in the prior quarter."
Go concluded, "Calumet's liquidity improved by $13 million during the second quarter, to $473 million, despite our debt repurchase activity. Importantly, we continue to see strong returns from our Self-Help program, which captured an additional $8 million in Adjusted EBITDA in the quarter, and nearly $22 million during the first half of fiscal 2019. These results came primarily from operational improvements at our Shreveport and San Antonio refineries, allowing for increased production capacity and increased margin capture, as well as through ERP-driven efficiencies that are facilitating a continued reduction in Calumet's transportation costs. Additionally, continued focus on operational performance and improved utilization across our assets helped drive quarterly records for feedstock runs at our Cotton Valley solvents plant and production volumes at our Shreveport refinery. We remain focused on our transformation to be the premier specialty petroleum products company in the world, which we will accomplish by delivering consistent improvements to our operational and financial performance, continuing to de-lever our balance sheet and by positioning our business for future growth."
Specialty Products Segment | Results Summary
Three Months Ended June 30, | |||||||
2019 | 2018 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Specialty products segment gross profit | $ | 82.0 | $ | 88.0 | |||
Specialty products segment gross profit (excluding LCM/LIFO) | $ | 82.4 | $ | 83.9 | |||
Specialty products segment Adjusted EBITDA | $ | 47.3 | $ | 53.7 | |||
Specialty products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 47.7 | $ | 49.6 | |||
Specialty products segment gross profit per barrel | $ | 36.59 | $ | 37.12 | |||
Specialty products segment gross profit per barrel (excluding LCM/LIFO) | $ | 36.77 | $ | 35.39 | |||
Specialty products TTM Adjusted EBITDA Margin | 12.5 | % | 12.5 | % | |||
Specialty products quarterly Adjusted EBITDA Margin | 13.7 | % | 14.0 | % | |||
Specialty products segment Adjusted EBITDA Margin (excluding LCM/LIFO) | 13.9 | % | 13.0 | % | |||
During the second quarter, Specialty products segment gross profit was $82.0 million and Adjusted EBITDA was $47.3 million, which included $0.4 million of unfavorable LCM adjustments. Excluding these non-cash adjustments, second quarter segment gross profit was $82.4 million and Adjusted EBITDA was $47.7 million, a decrease of 1.8% and 3.8%, respectively, versus the second quarter of 2018. This year-over-year decline in Adjusted EBITDA was driven primarily by lower sales volumes due to planned downtime at our Shreveport refinery and ongoing product rationalization and elimination of low-margin business in the finished lubricants and lubricating oils businesses, rising crude prices of 9.0% versus the preceding quarter and non-recurring business improvement expenses of $3.0 million associated with the execution of our self-help initiatives. Specialty products segment gross profit per barrel and Adjusted EBITDA Margin were $36.59 and 13.7%, respectively. Excluding non-cash LCM adjustments, Specialty products segment gross profit per barrel of $36.77 grew 3.9% compared to the year-ago period, driven in part by the contributions from the business unit profitability plans implemented last year. Excluding non-cash LCM adjustments, Specialty segment Adjusted EBITDA Margin of 13.9% improved significantly compared to the year-ago period results of 13.0%, as the rationalization of low-margin products and sales mix upgrading more than offset the 9.0% rise in average crude prices during the quarter, and continued weakness in base oil prices driven by market oversupply.
Fuel Products Segment | Results Summary
Three Months Ended June 30, | |||||
2019 | 2018 | ||||
(Dollars in millions, except per barrel data) | |||||
Fuel products segment gross profit | $ | 25.1 | $ | 35.4 | |
Fuel products segment gross profit (excluding LCM/LIFO) | $ | 22.1 | $ | 27.6 | |
Fuel products segment Adjusted EBITDA | $ | 32.3 | $ | 25.6 | |
Fuel products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 29.3 | $ | 17.8 | |
Fuel products segment gross profit per barrel | $ | 3.52 | $ | 5.09 | |
Fuel products segment gross profit per barrel (excluding LCM/LIFO) | $ | 3.10 | $ | 3.97 | |
During the second quarter, Fuel products segment gross profit of $25.1 million decreased compared to results of $35.4 million in the year-ago period, driven primarily by lower crude differentials to benchmark WTI and higher Renewable Identification Numbers ("RINs") costs compared to the year-ago period. Adjusted EBITDA of $32.3 million increased compared to $25.6 million in last year's comparable quarter. Excluding the favorable impact of $3.0 million of non-cash LCM adjustments this quarter, Adjusted EBITDA was $29.3 million, up from $17.8 million in the year-ago period, driven primarily by improved utilization and record production volumes at our Shreveport refinery. Gross profit per barrel of $3.52 decreased compared to $5.09 in the year-ago period, primarily due to unfavorable crude differentials for heavy Canadian crude and Midland-WTI, non-cash LCM charges and higher RINs prices compared to last year's comparable quarter.
Partnership Liquidity
As of June 30, 2019, the Partnership had total liquidity of $473.1 million, comprised of $173.5 million of cash and $299.6 million of availability under the revolving credit facility. As of June 30, 2019, Calumet had a $376.7 million borrowing base, $77.1 million in outstanding standby letters of credit and no outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Full-Year 2019 Capital Spending Forecast
Through the second quarter of 2019, total capital spending was $25.8 million, primarily related to growth capital and maintenance and turnaround activity. For the full-year 2019 the Partnership's capital expenditures are expected to come near the low end of the previously guided range of $80.0 million and $90.0 million.
Operations Summary
The following table sets forth information about the Partnership's combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
(In bpd) | |||||||||||
Total sales volume (1) | 102,923 | 102,484 | 105,961 | 95,298 | |||||||
Total feedstock runs (2) | 104,415 | 98,704 | 104,921 | 91,637 | |||||||
Facility production: (3) | |||||||||||
Specialty products: | |||||||||||
Lubricating oils | 11,327 | 13,755 | 11,839 | 11,904 | |||||||
Solvents | 7,317 | 7,726 | 7,624 | 7,854 | |||||||
Waxes | 1,427 | 1,172 | 1,403 | 1,205 | |||||||
Packaged and synthetic specialty products (4) | 1,747 | 2,458 | 1,810 | 2,448 | |||||||
Other | 1,660 | 2,087 | 1,417 | 1,898 | |||||||
Total | 23,478 | 27,198 | 24,093 | 25,309 | |||||||
Fuel products: | |||||||||||
Gasoline | 23,245 | 21,135 | 23,924 | 19,501 | |||||||
Diesel | 28,233 | 27,993 | 29,349 | 25,534 | |||||||
Jet fuel | 5,517 | 2,705 | 4,081 | 3,223 | |||||||
Asphalt, heavy fuel oils and other | 21,484 | 20,869 | 20,413 | 18,909 | |||||||
Total | 78,479 | 72,702 | 77,767 | 67,167 | |||||||
Total facility production (3) | 101,957 | 99,900 | 101,860 | 92,476 | |||||||
_______________ | |
(1) | Total sales volume includes sales from the production at the Partnership's 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in the Partnership's fuel products segment sales. |
The increase in total sales volume for the three and six months ended June 30, 2019, as compared to the same periods in 2018, is due primarily to improved plant utilization in the first and second quarters of 2019. | |
(2) | Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
The increase in total feedstock runs for the three and six months ended June 30, 2019, as compared to the same periods in 2018, is due primarily to improved plant utilization in the first and second quarters of 2019. In the first and second quarters of 2018, turnaround activities at the Shreveport refinery and certain third-party processing facilities and maintenance activities negatively impacted our sales volumes. | |
(3) | Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
The change in total facility production for the three and six months ended June 30, 2019, as compared to the same periods in 2018, is due primarily to the operational items discussed above in footnote 2. | |
(4) | Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2019 and 2018:
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | |||||||||||||||
Derivative loss reflected in cost of sales | $ | — | $ | (2.1) | $ | — | $ | (2.1) | |||||||
Derivative loss reflected in gross profit | $ | — | $ | (2.1) | $ | — | $ | (2.1) | |||||||
Realized gain (loss) on derivative instruments | $ | 22.5 | $ | — | $ | 34.2 | $ | (2.1) | |||||||
Unrealized gain (loss) on derivative instruments | (12.2) | 0.8 | (14.8) | 2.8 | |||||||||||
Total derivative gain (loss) reflected in the unaudited condensed consolidated statements of operations | $ | 10.3 | $ | (1.3) | $ | 19.4 | $ | (1.4) | |||||||
Total gain (loss) on commodity derivative settlements | $ | 22.5 | $ | — | $ | 34.2 | $ | (2.1) | |||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on August 8, 2019 to discuss the financial and operational results for the second quarter of 2019. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 7675835. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company'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) 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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates 11 manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and strategic initiatives, (iii) our ability to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, and (iv) expectations regarding future repurchases of debt. 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 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 acquisitions or dispositions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 Fuels Standard, 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 and Quarterly Reports on Form 10-Q.
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.
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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) LCM inventory adjustments and (i) the impact of liquidation of last-in, first-out ("LIFO") inventory layers.
Adjusted earnings (loss) per unit: We define Adjusted earnings (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA (excluding LCM/LIFO) for any period as Adjusted EBITDA excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We define Specialty products segment gross profit (excluding LCM/LIFO) for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We define Fuel products segment gross profit (excluding LCM/LIFO) for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Further, management and various investors use the ratio of Net debt (defined as total debt less cash) to Adjusted EBITDA, or "net debt leverage," as a measure of our financial strength and ability to incur incremental indebtedness when making key investment decisions and evaluating us against peers. The metric "total debt less cash" includes borrowed long-term debt, letters of credit, and capital lease obligations, less cash.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this press release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes") and our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes and 2023 Notes and Adjusted 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit 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, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Adjusted EBITDA (excluding LCM/LIFO) do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; and segment gross profit (excluding LCM/LIFO) to segment gross profit, 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 June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Sales | $ | 896.9 | $ | 945.5 | $ | 1,748.2 | $ | 1,696.0 | ||||||
Cost of sales | 789.8 | 822.1 | 1,505.1 | 1,459.4 | ||||||||||
Gross profit | 107.1 | 123.4 | 243.1 | 236.6 | ||||||||||
Operating costs and expenses: | ||||||||||||||
Selling | 14.3 | 10.6 | 27.6 | 25.3 | ||||||||||
General and administrative | 37.8 | 31.9 | 72.7 | 72.5 | ||||||||||
Transportation | 31.6 | 33.0 | 67.5 | 63.3 | ||||||||||
Taxes other than income taxes | 4.7 | 5.4 | 9.8 | 7.3 | ||||||||||
Loss on impairment and disposal of assets | 16.2 | 0.7 | 27.9 | 1.2 | ||||||||||
Other operating income | (2.2) | (1.8) | (0.9) | (17.9) | ||||||||||
Operating income | 4.7 | 43.6 | 38.5 | 84.9 | ||||||||||
Other income (expense): | ||||||||||||||
Interest expense | (33.1) | (37.5) | (65.4) | (82.7) | ||||||||||
Gain (loss) from debt extinguishment | 0.3 | (58.2) | 0.7 | (58.8) | ||||||||||
Gain on derivative instruments | 10.3 | 0.8 | 19.4 | 0.7 | ||||||||||
Other | 1.3 | 0.9 | 6.6 | 2.4 | ||||||||||
Total other expense | (21.2) | (94.0) | (38.7) | (138.4) | ||||||||||
Net loss from continuing operations before income taxes | (16.5) | (50.4) | (0.2) | (53.5) | ||||||||||
Income tax expense from continuing operations | 0.3 | 0.8 | 0.2 | 0.6 | ||||||||||
Net loss from continuing operations | $ | (16.8) | $ | (51.2) | $ | (0.4) | $ | (54.1) | ||||||
Net loss from discontinued operations, net of tax | — | (0.7) | — | (2.6) | ||||||||||
Net loss | $ | (16.8) | $ | (51.9) | $ | (0.4) | $ | (56.7) | ||||||
Allocation of net loss: | ||||||||||||||
Net loss | $ | (16.8) | $ | (51.9) | $ | (0.4) | $ | (56.7) | ||||||
Less: | . | |||||||||||||
General partner's interest in net loss | (0.3) | (1.0) | — | (1.1) | ||||||||||
Net loss available to limited partners | $ | (16.5) | $ | (50.9) | $ | (0.4) | $ | (55.6) | ||||||
Weighted average limited partner units outstanding: | ||||||||||||||
Basic and diluted | 78,212,837 | 77,730,458 | 78,111,857 | 77,644,262 | ||||||||||
Limited partners' interest basic and diluted net loss per unit: | ||||||||||||||
From continuing operations | $ | (0.21) | $ | (0.64) | $ | — | $ | (0.68) | ||||||
From discontinued operations | — | (0.01) | — | (0.03) | ||||||||||
Limited partners' interest | $ | (0.21) | $ | (0.65) | $ | — | $ | (0.71) | ||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(In millions) | |||||
June 30, 2019 | December 31, 2018 | ||||
(Unaudited) | |||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 173.5 | $ | 155.7 | |
Accounts receivable, net | 259.6 | 198.0 | |||
Inventories | 285.1 | 284.1 | |||
Derivative assets | 0.7 | 18.3 | |||
Prepaid expenses and other current assets | 11.8 | 13.9 | |||
Total current assets | 730.7 | 670.0 | |||
Property, plant and equipment, net | 1,055.8 | 1,098.1 | |||
Investment in unconsolidated affiliates | 9.3 | 25.4 | |||
Goodwill | 171.4 | 171.4 | |||
Other intangible assets, net | 79.6 | 88.0 | |||
Operating lease right-of-use assets | 123.6 | — | |||
Other noncurrent assets, net | 36.7 | 34.6 | |||
Total assets | $ | 2,207.1 | $ | 2,087.5 | |
LIABILITIES AND PARTNERS' CAPITAL | |||||
Current liabilities: | |||||
Accounts payable | $ | 252.6 | $ | 200.6 | |
Accrued interest payable | 29.6 | 30.7 | |||
Accrued salaries, wages and benefits | 26.3 | 25.7 | |||
Other taxes payable | 17.9 | 15.2 | |||
Obligations under inventory financing agreements | 125.5 | 105.3 | |||
Other current liabilities | 79.8 | 33.8 | |||
Current portion of operating lease liabilities | 62.1 | — | |||
Current portion of long-term debt | 2.0 | 3.8 | |||
Total current liabilities | 595.8 | 415.1 | |||
Pension and postretirement benefit obligations | 4.5 | 4.5 | |||
Other long-term liabilities | 1.4 | 1.5 | |||
Long-term operating lease liabilities | 62.5 | — | |||
Long-term debt, less current portion | 1,475.8 | 1,600.7 | |||
Total liabilities | 2,140.0 | 2,021.8 | |||
Commitments and contingencies | |||||
Partners' capital: | |||||
Partners' capital | 74.6 | 74.4 | |||
Accumulated other comprehensive loss | (7.5) | (8.7) | |||
Total partners' capital | 67.1 | 65.7 | |||
Total liabilities and partners' capital | $ | 2,207.1 | $ | 2,087.5 | |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(In millions) | ||||||
Six Months Ended June 30, | ||||||
2019 | 2018 | |||||
Operating activities | ||||||
Net loss | $ | (0.4) | $ | (56.7) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Net loss from discontinued operations | — | 2.6 | ||||
Depreciation and amortization | 55.2 | 59.2 | ||||
Amortization of turnaround costs | 10.4 | 6.0 | ||||
Non-cash interest expense | 3.5 | 4.4 | ||||
(Gain) loss on debt extinguishments | (0.7) | 58.8 | ||||
Unrealized (gain) loss on derivative instruments | 14.8 | (2.8) | ||||
Equity based compensation | 4.6 | 3.0 | ||||
Lower of cost or market inventory adjustment | (41.5) | (15.0) | ||||
Operating lease expense | 37.8 | — | ||||
Operating lease payments | (37.4) | — | ||||
Loss on impairment and disposal of assets | 27.9 | 1.2 | ||||
Other non-cash activities | (3.6) | (1.0) | ||||
Changes in assets and liabilities: | ||||||
Accounts receivable | (66.6) | 19.5 | ||||
Inventories | 40.5 | (2.6) | ||||
Prepaid expenses and other current assets | 6.0 | 2.2 | ||||
Derivative activity | (0.3) | (0.3) | ||||
Turnaround costs | (6.4) | (7.6) | ||||
Other assets | 0.1 | — | ||||
Accounts payable | 42.9 | (17.7) | ||||
Accrued interest payable | (0.5) | (20.3) | ||||
Accrued salaries, wages and benefits | (3.0) | (6.7) | ||||
Other taxes payable | 2.7 | 5.2 | ||||
Other liabilities | 3.6 | (54.7) | ||||
Net cash provided by (used in) operating activities | 89.6 | (23.3) | ||||
Investing activities | ||||||
Additions to property, plant and equipment | (17.1) | (33.3) | ||||
Investment in unconsolidated affiliate | — | (3.8) | ||||
Proceeds from sale of unconsolidated affiliate | 5.0 | 9.9 | ||||
Proceeds from sale of business, net | — | 28.4 | ||||
Proceeds from sale of property, plant and equipment | 3.7 | 0.2 | ||||
Net cash provided by discontinued investing activities | 5.0 | 3.4 | ||||
Net cash provided by (used in) investing activities | (3.4) | 4.8 | ||||
Financing activities | ||||||
Proceeds from borrowings — revolving credit facility | — | 141.0 | ||||
Repayments of borrowings — revolving credit facility | — | (141.1) | ||||
Repayments of borrowings — senior notes | (88.6) | (400.0) | ||||
Payments on finance lease obligations | (0.7) | (1.8) | ||||
Proceeds from inventory financing agreements | 569.7 | 529.6 | ||||
Payments on inventory financing agreements | (547.7) | (533.6) | ||||
Proceeds from other financing obligations | — | — | ||||
Payments on other financing obligations | (1.2) | (1.6) | ||||
Payments on extinguishment of debt | — | (46.6) | ||||
Debt issuance costs | — | (2.9) | ||||
Contributions from Calumet GP, LLC | 0.1 | — | ||||
Net cash used in financing activities | (68.4) | (457.0) | ||||
Net increase (decrease) in cash and cash equivalents | 17.8 | (475.5) | ||||
Cash and cash equivalents at beginning of period | 155.7 | 514.3 | ||||
Cash and cash equivalents at end of period | $ | 173.5 | $ | 38.8 | ||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||
NON-GAAP RECONCILIATIONS | ||||||||||||||
RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | ||||||||||||||
(In millions) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | (Unaudited) | |||||||||||||
Net loss | $ | (16.8) | $ | (51.9) | $ | (0.4) | $ | (56.7) | ||||||
Add: | ||||||||||||||
Interest expense | 33.1 | 37.5 | 65.4 | 82.7 | ||||||||||
Depreciation and amortization | 27.0 | 29.5 | 55.2 | 59.2 | ||||||||||
Income tax expense | 0.3 | 0.8 | 0.2 | 0.6 | ||||||||||
EBITDA | $ | 43.6 | $ | 15.9 | $ | 120.4 | $ | 85.8 | ||||||
Add: | ||||||||||||||
Unrealized (gain) loss on derivative instruments | $ | 12.2 | $ | (0.8) | $ | 14.8 | $ | (2.8) | ||||||
Realized loss on derivatives, not included in net loss or settled in a prior period | — | 2.1 | — | 2.1 | ||||||||||
Amortization of turnaround costs | 5.6 | 2.7 | 10.4 | 6.0 | ||||||||||
(Gain) loss from debt extinguishment | (0.3) | 58.2 | (0.7) | 58.8 | ||||||||||
Gain on sale of unconsolidated affiliate (3) | — | — | (1.2) | — | ||||||||||
Loss on impairment and disposal of assets | 16.2 | 0.7 | 27.9 | 1.2 | ||||||||||
Equity based compensation and other items | 2.3 | 0.1 | 5.7 | 2.8 | ||||||||||
Adjusted EBITDA | $ | 79.6 | $ | 78.9 | $ | 177.3 | $ | 153.9 | ||||||
Less: | ||||||||||||||
Replacement and environmental capital expenditures (1) | $ | 7.4 | $ | 5.0 | $ | 13.6 | $ | 11.6 | ||||||
Cash interest expense (2) | 31.5 | 35.8 | 61.9 | 78.3 | ||||||||||
Turnaround costs | 4.7 | 0.8 | 6.4 | 7.6 | ||||||||||
Income (loss) from unconsolidated affiliates (3) | — | — | 3.8 | (3.7) | ||||||||||
Income tax expense | 0.3 | 0.8 | 0.2 | 0.6 | ||||||||||
Distributable Cash Flow | $ | 35.7 | $ | 36.5 | $ | 91.4 | $ | 59.5 | ||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | ||||||
(In millions) | ||||||
Six Months Ended June 30, | ||||||
2019 | 2018 | |||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by (used in) operating activities: | (Unaudited) | |||||
Distributable Cash Flow | $ | 91.4 | $ | 59.5 | ||
Add: | ||||||
Replacement and environmental capital expenditures (1) | 13.6 | 11.6 | ||||
Cash interest expense (2) | 61.9 | 78.3 | ||||
Turnaround costs | 6.4 | 7.6 | ||||
Income (loss) from unconsolidated affiliates (3) | 3.8 | (3.7) | ||||
Income tax expense | 0.2 | 0.6 | ||||
Adjusted EBITDA | $ | 177.3 | $ | 153.9 | ||
Less: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 14.8 | $ | (2.8) | ||
Realized loss on derivatives, not included in net loss or settled in a prior period | — | 2.1 | ||||
Amortization of turnaround costs | 10.4 | 6.0 | ||||
(Gain) loss from debt extinguishment | (0.7) | 58.8 | ||||
Gain on sale of unconsolidated affiliate(3) | (1.2) | — | ||||
Loss on impairment and disposal of assets | 27.9 | 1.2 | ||||
Equity based compensation and other items | 5.7 | 2.8 | ||||
EBITDA | $ | 120.4 | $ | 85.8 | ||
Add: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 14.8 | $ | (2.8) | ||
Cash interest expense (2) | (61.9) | (78.3) | ||||
Equity based compensation | 4.6 | 1.8 | ||||
Lower of cost or market inventory adjustment | (41.5) | (15.0) | ||||
(Income) loss from unconsolidated affiliates(3) | (3.8) | 3.7 | ||||
Gain on sale of unconsolidated affiliates(3) | (1.2) | — | ||||
Amortization of turnaround costs | 10.4 | 6.0 | ||||
(Gain) loss from debt extinguishment | (0.7) | 58.8 | ||||
Operating lease expense | 37.8 | — | ||||
Operating lease payments | (37.4) | — | ||||
Loss on impairment and disposal of assets | 27.9 | 1.2 | ||||
Income tax expense | (0.2) | (0.6) | ||||
Changes in assets and liabilities: | ||||||
Accounts receivable | (66.6) | 19.5 | ||||
Inventories | 40.5 | (2.6) | ||||
Other current assets | 6.0 | 2.2 | ||||
Derivative activity | (0.3) | (0.3) | ||||
Turnaround costs | (6.4) | (7.6) | ||||
Other assets | 0.1 | — | ||||
Accounts payable | 42.9 | (17.7) | ||||
Accrued interest payable | (0.5) | (20.3) | ||||
Other current liabilities | 3.3 | (56.2) | ||||
Other | 1.4 | (0.9) | ||||
Net cash provided by (used in) operating activities | $ | 89.6 | $ | (23.3) | ||
____________________ | |
(1) | 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. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
(3) | In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring Biosynthetic Technologies, LLC ("Biosynthetic Technologies"), a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. The initial cash investment of $3.8 million made by the Company into Biosyn was expensed in the period ended March 31, 2018 given Biosyn's operations were all related to research and development. The Company accounts for its ownership in Biosyn under the equity method of accounting. During March 2019, the Company sold its investment to The Heritage Group and recognized a gain of $5.0 million. For comparability purposes, $3.8 million of the gain is included in Adjusted EBITDA for the six months ended June 30, 2019. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | ||||||
(In millions) | ||||||
Three Months Ended June 30, | ||||||
2019 | 2018 | |||||
Reconciliation of Segment Adjusted EBITDA to EBITDA and Net loss: | (Unaudited) | |||||
Segment Adjusted EBITDA | ||||||
Specialty products Adjusted EBITDA | $ | 47.3 | $ | 53.7 | ||
Fuel products Adjusted EBITDA | 32.3 | 25.6 | ||||
Discontinued operations Adjusted EBITDA | — | (0.4) | ||||
Total segment Adjusted EBITDA | $ | 79.6 | $ | 78.9 | ||
Less: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 12.2 | $ | (0.8) | ||
Realized loss on derivatives, not included in net loss or settled in a prior period | — | 2.1 | ||||
Amortization of turnaround costs | 5.6 | 2.7 | ||||
Loss on impairment and disposal of assets | 16.2 | 0.7 | ||||
(Gain) loss from debt extinguishment | (0.3) | 58.2 | ||||
Equity based compensation and other items | 2.3 | 0.1 | ||||
EBITDA | $ | 43.6 | $ | 15.9 | ||
Less: | ||||||
Interest expense | $ | 33.1 | $ | 37.5 | ||
Depreciation and amortization | 27.0 | 29.5 | ||||
Income tax expense | 0.3 | 0.8 | ||||
Net loss | $ | (16.8) | $ | (51.9) | ||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||
RECONCILIATION OF SEGMENT METRICS EXCLUDING LCM/LIFO | ||||||||||||||
(In millions, except per barrel data) | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Reconciliation of Segment Metrics Excluding LCM/LIFO: | (Unaudited) | |||||||||||||
Specialty products segment Adjusted EBITDA | $ | 47.3 | $ | 53.7 | $ | 103.6 | $ | 91.4 | ||||||
LCM inventory adjustments | 0.4 | (4.1) | (6.2) | (6.3) | ||||||||||
LIFO inventory layer adjustments | — | — | 0.9 | — | ||||||||||
Specialty products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 47.7 | $ | 49.6 | $ | 98.3 | $ | 85.1 | ||||||
Fuel products segment Adjusted EBITDA | $ | 32.3 | $ | 25.6 | $ | 73.7 | $ | 64.3 | ||||||
LCM inventory adjustments | (3.0) | (7.8) | (35.3) | (8.7) | ||||||||||
Fuel products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 29.3 | $ | 17.8 | $ | 38.4 | $ | 55.6 | ||||||
Continuing Operations Adjusted EBITDA | 79.6 | 79.3 | 177.3 | 155.7 | ||||||||||
Discontinued Operations Adjusted EBITDA | — | (0.4) | — | (1.8) | ||||||||||
Total Adjusted EBITDA | 79.6 | 78.9 | 177.3 | 153.9 | ||||||||||
LCM inventory adjustments | (2.6) | (11.9) | (41.5) | (15.0) | ||||||||||
LIFO inventory layer adjustments | — | — | 0.9 | — | ||||||||||
Total Adjusted EBITDA (excluding LCM/LIFO) | $ | 77.0 | $ | 67.0 | $ | 136.7 | $ | 138.9 | ||||||
Specialty products segment gross profit | $ | 82.0 | $ | 88.0 | $ | 174.9 | $ | 157.6 | ||||||
LCM inventory adjustments | 0.4 | (4.1) | (6.2) | (6.3) | ||||||||||
LIFO inventory layer adjustments | — | — | 0.9 | — | ||||||||||
Specialty products segment gross profit (excluding LCM/LIFO) | $ | 82.4 | $ | 83.9 | $ | 169.6 | $ | 151.3 | ||||||
Fuel products segment gross profit | $ | 25.1 | $ | 35.4 | $ | 68.2 | $ | 79.0 | ||||||
LCM inventory adjustments | (3.0) | (7.8) | (35.3) | (8.7) | ||||||||||
Fuel products segment gross profit (excluding LCM/LIFO) | $ | 22.1 | $ | 27.6 | $ | 32.9 | $ | 70.3 | ||||||
Reported Specialty products segment gross profit per barrel | $ | 36.59 | $ | 37.12 | $ | 37.36 | $ | 35.23 | ||||||
LCM/LIFO inventory adjustments per barrel | 0.18 | (1.73) | (1.13) | (1.41) | ||||||||||
Specialty products segment gross profit per barrel (excluding LCM/LIFO) | $ | 36.77 | $ | 35.39 | $ | 36.23 | $ | 33.82 | ||||||
Reported Fuel products segment gross profit per barrel | $ | 3.52 | $ | 5.09 | $ | 4.70 | $ | 6.18 | ||||||
LCM/LIFO inventory adjustments per barrel | (0.42) | (1.12) | (2.43) | (0.68) | ||||||||||
Fuel products segment gross profit per barrel (excluding LCM/LIFO) | $ | 3.10 | $ | 3.97 | $ | 2.27 | $ | 5.50 | ||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF NET LOSS TO ADJUSTED NET INCOME (LOSS) | ||||||
(In millions, except per unit data) | ||||||
Three Months Ended June 30, | ||||||
2019 | 2018 | |||||
Reconciliation of Net Loss to Adjusted Net Income (Loss) | (Unaudited) | |||||
Net loss | $ | (16.8) | $ | (51.9) | ||
Add: | ||||||
LCM inventory adjustments | (2.6) | (11.9) | ||||
Unrealized (gain) loss on derivative instruments | 12.2 | (0.8) | ||||
Realized loss on derivatives, not included in net loss or settled in a prior period | — | 2.1 | ||||
(Gain) loss from debt extinguishment | (0.3) | 58.2 | ||||
Amortization of turnaround costs | 5.6 | 2.7 | ||||
Loss on impairment and disposal of assets | 16.2 | 0.7 | ||||
Equity based compensation and other non-cash items | 2.3 | 0.1 | ||||
Adjusted net income (loss) | $ | 16.6 | $ | (0.8) | ||
Adjusted income (loss) per unit | $ | 0.21 | $ | (0.01) | ||
Average limited partner units - diluted | 78,212,837 | 77,730,458 | ||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||
RECONCILIATION OF NET DEBT / LTM ADJUSTED EBITDA | |||||
(In millions, except per unit data) | |||||
Three Months Ended | Three Months Ended | ||||
2019 | 2019 | ||||
Reconciliation of Net Debt / LTM Adjusted EBITDA | (Unaudited) | ||||
6.50% Senior Notes due 2021 | 810.2 | 876.8 | |||
7.625% Senior Notes due 2022 | 350.0 | 350.0 | |||
7.75% Senior Notes due 2023 | 325.0 | 325.0 | |||
Capital Leases | 3.0 | 3.3 | |||
Other | 4.5 | 4.9 | |||
Total Debt | 1,492.7 | 1,560.0 | |||
Less Cash | 173.5 | 152.9 | |||
Net Debt
| 1,319.2 | 1,407.1 | |||
LTM Adjusted EBITDA (as reported)
| 287.3 | 286.6 | |||
Net Debt / LTM Adjusted EBITDA (as reported)
| 4.6 | x | 4.9 | x | |
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-second-quarter-2019-results-300898558.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/8/2019Calumet Specialty Products Partners, L.P. to Attend Bank of America Merrill Lynch 2019 Energy Credit Conference
Source: PR Newswire
INDIANAPOLIS, June 4, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the Bank of America Merrill Lynch 2019 Energy Credit Conference on Wednesday June 5, 2019 in New York, NY.
Management will provide an overview of the Company's business during a live presentation and will be available to participate in one-on-one meetings with investors who are registered to attend the conference. The presentation will be webcast live at 3:00 p.m. EDT on June 5th. In addition to the live webcast, these presentations can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-bank-of-america-merrill-lynch-2019-energy-credit-conference-300862065.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/4/2019Calumet Specialty Products Partners, L.P. Reports First Quarter 2019 Results
Source: PR Newswire
INDIANAPOLIS, May 10, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," the "Company," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the first quarter ended March 31, 2019, as follows:
Three Months Ended March 31, | |||||
2019 | 2018 | ||||
(Dollars in millions, except per unit data) | |||||
Net income (loss) | $ | 16.4 | $ | (4.8) | |
Adjusted net loss | $ | (0.7) | $ | (2.8) | |
Earnings (loss) per unit | $ | 0.20 | $ | (0.06) | |
Adjusted loss per unit | $ | (0.01) | $ | (0.04) | |
Adjusted EBITDA | $ | 97.7 | $ | 75.0 | |
Adjusted EBITDA (excluding LCM/LIFO) | $ | 59.7 | $ | 71.9 | |
The Partnership's $16.4 million of Net income and $0.20 of Earnings per unit for the first quarter 2019 included, among other items, a $38.0 million favorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments and the liquidation of last-in, first-out ("LIFO") inventory layers, as well as an $11.7 million asset disposal and impairment loss. Excluding the impact of LCM, LIFO, asset disposal and impairment losses, and other non-cash items, Adjusted net loss and Adjusted loss per unit were $0.7 million and $0.01 per unit, respectively. The Partnership's $97.7 million of Adjusted EBITDA for the first quarter 2019 included a $38.0 million favorable net impact related to the non-cash LCM inventory adjustments and the liquidation of LIFO inventory layers. Excluding these impacts, Adjusted EBITDA (excluding-LCM/LIFO) was $59.7 million.
For detailed information on the non-GAAP measures presented in this release and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"Calumet delivered another strong quarter to start the year, as good execution against our strategy drove the best first quarter results for our core Specialty business that we've had in three years, including Net Income of $16.4 million and Adjusted EBITDA of $97.7 million, or $59.7 million after excluding favorable non-cash inventory adjustments," said Tim Go, Chief Executive Officer of Calumet. "Our core business profitability continues to grow, our operational execution is improving, and our operating cash flows and liquidity are strengthening. The Partnership's improved first quarter results reflect the benefits of the new strategic plans implemented across our core Specialty business last year which, in turn, are helping drive the meaningful sequential and year-over-year improvements to both our Gross Profit and Adjusted EBITDA. During the quarter, our Fuels business also made positive contributions to our consolidated results despite weaker market conditions. In addition, our Self-Help Phase II program captured over $13 million in Adjusted EBITDA. These self-help gains were achieved by the new general managers of our business lines leveraging data driven insights from our new enterprise resource planning system, which is allowing us to better identify opportunities to lower costs, improve margins and identify potential growth opportunities."
Go concluded, "During the quarter, our liquidity position improved by $9 million, to $460 million, driven by $27.4 million of cash flow from operations. This improvement in liquidity came despite repurchasing approximately $23 million face amount of 2021 Notes in the open market during the first quarter. Since the start of the year, we have repurchased a total of $50 million face amount of 2021 Notes through the end of April. Calumet's net debt/EBITDA leverage has improved to 4.9x, and I am pleased to report that we extended the term on our inventory financing arrangement with our third-party lender to 2023, demonstrating the Partnership's access to capital. Improving the Partnership's capital structure continues to be our most important strategic goal, and while we are pleased with the advancements made during the quarter, we remain committed to delevering our balance sheet further as we continue our transformation to be the premiere specialty petroleum products company in the world."
Specialty Products Segment | Results Summary
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Specialty products segment gross profit | $ | 92.9 | $ | 69.6 | |||
Specialty products segment gross profit (excluding LCM/LIFO) | $ | 87.2 | $ | 67.4 | |||
Specialty products segment Adjusted EBITDA | $ | 56.3 | $ | 37.7 | |||
Specialty products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 50.6 | $ | 35.5 | |||
Specialty products segment gross profit per barrel | $ | 38.07 | $ | 33.11 | |||
Specialty products segment gross profit per barrel (excluding LCM/LIFO) | $ | 35.73 | $ | 32.06 | |||
Specialty products quarterly Adjusted EBITDA Margin | 16.0 | % | 14.1 | % | |||
Specialty products segment Adjusted EBITDA Margin (excluding LCM/LIFO) | 14.4 | % | 11.0 | % | |||
During the first quarter, Specialty products segment gross profit was $92.9 million and Adjusted EBITDA was $56.3 million, which included $5.7 million of net favorable LCM and LIFO adjustments. Excluding these non-cash adjustments, first quarter segment gross profit was $87.2 million and Adjusted EBITDA was $50.6 million, which is an improvement of 29% and 43%, respectively, versus the first quarter of 2018. Specialty products segment gross profit per barrel grew more than 11% compared to the year-ago period. Strong segment performance was driven in part by the contributions from the business unit profitability plans implemented last year, as well strong sales volume across lubricating oils and solvents products. The Adjusted EBITDA Margin improved significantly compared to the year-ago period, as the rationalization of low-margin products and sales mix upgrading more than offset the negative impacts of the significant rise in crude costs during the quarter.
Fuel Products Segment | Results Summary
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Fuel products segment gross profit | $ | 43.1 | $ | 43.6 | |||
Fuel products segment gross profit (excluding LCM/LIFO) | $ | 10.8 | $ | 42.7 | |||
Fuel products segment Adjusted EBITDA | $ | 41.4 | $ | 38.7 | |||
Fuel products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 9.1 | $ | 37.8 | |||
Fuel products segment gross profit per barrel | $ | 5.85 | $ | 7.49 | |||
Fuel products segment gross profit per barrel (excluding LCM/LIFO) | $ | 1.47 | $ | 7.34 | |||
During the first quarter, Fuel products segment gross profit of $43.1 million decreased compared to results of $43.6 million in the year-ago period, while Adjusted EBITDA of $41.4 million increased compared to $38.7 million in last year's comparable quarter. Excluding the favorable impact of $32.3 million of non-cash LCM and LIFO inventory adjustments this quarter, Adjusted EBITDA was $9.1 million, down from $37.8 million in the year-ago period, primarily due to the absence of Renewable Identification Numbers ("RINs") hardship exemptions this quarter. Excluding the impact of RINs hardship exemptions, segment profitability results grew significantly year-over-year, due to improved utilization and higher product realizations at our Shreveport, Great Falls and San Antonio refineries. Gross profit per barrel decreased compared to the year-ago period, primarily due to the absence of RINs hardship exemptions and unfavorable crude differentials for heavy Canadian crude.
Partnership Liquidity
As of March 31, 2019, the Partnership had total liquidity of $459.6 million, comprised of $152.9 million of cash and availability under the revolving credit facility of $306.7 million. As of March 31, 2019, Calumet had a $342.4 million borrowing base, $35.7 million in outstanding standby letters of credit and no outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2019 Capital Spending Forecast
Through the first quarter of 2019, total capital spending was $11.2 million, primarily related to growth capital and maintenance and turnaround activity. For the full-year 2019 the Partnership's capital expenditures are expected to come within the range of $80.0 million and $90.0 million.
Operations Summary
The following table sets forth information about the Partnership's combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks, such as ethanol and biodiesel, and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended March 31, | |||
2019 | 2018 | ||
(In bpd) | |||
Total sales volume (1) | 109,022 | 88,033 | |
Total feedstock runs (2) | 105,434 | 84,492 | |
Facility production: (3) | |||
Specialty products: | |||
Lubricating oils | 12,357 | 10,031 | |
Solvents | 7,935 | 7,984 | |
Waxes | 1,379 | 1,239 | |
Packaged and synthetic specialty products (4) | 1,874 | 2,438 | |
Other | 1,172 | 1,706 | |
Total | 24,717 | 23,398 | |
Fuel products: | |||
Gasoline | 24,610 | 17,848 | |
Diesel | 30,477 | 23,049 | |
Jet fuel | 2,629 | 3,747 | |
Asphalt, heavy fuel oils and other | 19,329 | 16,929 | |
Total | 77,045 | 61,573 | |
Total facility production (3) | 101,762 | 84,971 | |
__________________ | |
(1) | Total sales volume includes sales from the production at the Partnership's facilities and certain third-party facilities pursuant to |
The increase in total sales volume for the three months ended March 31, 2019, as compared to the same period in 2018, is due | |
(2) | Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's |
The increase in total feedstock runs for the three months ended March 31, 2019, as compared to the same period in 2018, is | |
(3) | Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other |
The change in total facility production for the three months ended March 31, 2019, as compared to the same period in 2018, is | |
(4) | Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, |
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2019 and 2018:
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(In millions) | ||||||
Realized gain (loss) on derivative instruments | $ | 11.7 | $ | (2.1) | ||
Unrealized gain (loss) on derivative instruments | (2.6) | 2.0 | ||||
Total derivative gain (loss) reflected in the unaudited condensed consolidated statements of | $ | 9.1 | $ | (0.1) | ||
Total gain (loss) on commodity derivative settlements | $ | 11.7 | $ | (2.1) | ||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on May 10, 2019 to discuss the financial and operational results for the first quarter of 2019. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 9294516. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company'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) 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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates 11 manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and strategic initiatives, (iii) our ability to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, and (iv) statements regarding future Adjusted EBITDA contributions attributable to Phase II of our multi-year self-help program commencing in 2019. 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 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 acquisitions or dispositions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 Fuels Standard, 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 and Quarterly Reports on Form 10-Q.
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.
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 GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) LCM inventory adjustments and (i) the impact of liquidation of LIFO inventory layers.
Adjusted earnings (loss) per unit: We define Adjusted earnings (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA (excluding LCM/LIFO) for any period as Adjusted EBITDA excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We define Specialty products segment gross profit (excluding LCM/LIFO) for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We define Fuel products segment gross profit (excluding LCM/LIFO) for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this press release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes") and our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes and 2023 Notes and Adjusted 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) should not be considered alternatives to Net income (loss), Operating income (loss), Net cash provided by (used in) operating activities, gross profit 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, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Adjusted EBITDA (excluding LCM/LIFO) do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; and segment gross profit (excluding LCM/LIFO) to segment gross profit, 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 March 31, | |||||||
2019 | 2018 | ||||||
Sales | $ | 851.3 | $ | 750.5 | |||
Cost of sales | 715.3 | 637.3 | |||||
Gross profit | 136.0 | 113.2 | |||||
Operating costs and expenses: | |||||||
Selling | 13.3 | 14.7 | |||||
General and administrative | 34.9 | 40.6 | |||||
Transportation | 35.9 | 30.3 | |||||
Taxes other than income taxes | 5.1 | 1.9 | |||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | |||||
Other operating (income) expense | 1.3 | (16.1) | |||||
Operating income | 33.8 | 41.3 | |||||
Other income (expense): | |||||||
Interest expense | (32.3) | (45.2) | |||||
Gain (loss) from debt extinguishment | 0.4 | (0.6) | |||||
Gain (loss) on derivative instruments | 9.1 | (0.1) | |||||
Other | 5.3 | 1.5 | |||||
Total other expense | (17.5) | (44.4) | |||||
Net income (loss) from continuing operations before income taxes | 16.3 | (3.1) | |||||
Income tax benefit from continuing operations | (0.1) | (0.2) | |||||
Net income (loss) from continuing operations | $ | 16.4 | $ | (2.9) | |||
Net loss from discontinued operations, net of tax | — | (1.9) | |||||
Net income (loss) | $ | 16.4 | $ | (4.8) | |||
Allocation of net income (loss): | |||||||
Net income (loss) | $ | 16.4 | $ | (4.8) | |||
Less: | . | ||||||
General partner's interest in net income (loss) | 0.3 | (0.1) | |||||
Non-vested share based payments | 0.1 | — | |||||
Net income (loss) available to limited partners | $ | 16.0 | $ | (4.7) | |||
Weighted average limited partner units outstanding: | |||||||
Basic | 78,111,551 | 78,045,360 | |||||
Diluted | 78,175,007 | 78,045,360 | |||||
Limited partners' interest basic and diluted net income (loss) per unit: | |||||||
From continuing operations | $ | 0.20 | $ | (0.04) | |||
From discontinued operations | — | (0.02) | |||||
Limited partners' interest | $ | 0.20 | $ | (0.06) | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(In millions) | |||||
March 31, 2019 | December 31, 2018 | ||||
(Unaudited) | |||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 152.9 | $ | 155.7 | |
Accounts receivable, net | 265.8 | 198.0 | |||
Inventories | 291.1 | 284.1 | |||
Derivative assets | 28.4 | 18.3 | |||
Prepaid expenses and other current assets | 17.5 | 13.9 | |||
Total current assets | 755.7 | 670.0 | |||
Property, plant and equipment, net | 1,069.0 | 1,098.1 | |||
Investment in unconsolidated affiliates | 25.4 | 25.4 | |||
Goodwill | 171.4 | 171.4 | |||
Other intangible assets, net | 83.8 | 88.0 | |||
Operating lease right-of-use assets | 134.4 | — | |||
Other noncurrent assets, net | 30.7 | 34.6 | |||
Total assets | $ | 2,270.4 | $ | 2,087.5 | |
LIABILITIES AND PARTNERS' CAPITAL | |||||
Current liabilities: | |||||
Accounts payable | $ | 237.7 | $ | 200.6 | |
Accrued interest payable | 44.3 | 30.7 | |||
Accrued salaries, wages and benefits | 20.7 | 25.7 | |||
Other taxes payable | 18.1 | 15.2 | |||
Obligations under inventory financing agreements | 111.8 | 105.3 | |||
Other current liabilities | 70.1 | 33.8 | |||
Current portion of operating lease liabilities | 61.3 | — | |||
Current portion of long-term debt | 2.2 | 3.8 | |||
Total current liabilities | 566.2 | 415.1 | |||
Pension and postretirement benefit obligations | 4.5 | 4.5 | |||
Other long-term liabilities | 1.4 | 1.5 | |||
Long-term operating lease liabilities | 73.6 | — | |||
Long-term debt, less current portion | 1,541.2 | 1,600.7 | |||
Total liabilities | 2,186.9 | 2,021.8 | |||
Commitments and contingencies | |||||
Partners' capital: | |||||
Partners' capital | 91.0 | 74.4 | |||
Accumulated other comprehensive loss | (7.5) | (8.7) | |||
Total partners' capital | 83.5 | 65.7 | |||
Total liabilities and partners' capital | $ | 2,270.4 | $ | 2,087.5 | |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net income (loss) | $ | 16.4 | $ | (4.8) | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Net loss from discontinued operations | — | 1.9 | |||||
Depreciation and amortization | 28.2 | 29.7 | |||||
Amortization of turnaround costs | 4.8 | 3.3 | |||||
Non-cash interest expense | 1.9 | 2.7 | |||||
(Gain) loss on debt extinguishments | (0.4) | 0.6 | |||||
Unrealized (gain) loss on derivative instruments | 2.6 | (2.0) | |||||
Equity based compensation | 2.2 | 1.1 | |||||
Lower of cost or market inventory adjustment | (38.9) | (3.1) | |||||
Operating lease expense | 20.8 | — | |||||
Operating lease payments | (20.6) | — | |||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | |||||
Other non-cash activities | (4.0) | 5.2 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (69.8) | 44.0 | |||||
Inventories | 31.9 | (7.5) | |||||
Prepaid expenses and other current assets | (3.5) | (8.5) | |||||
Derivative activity | (0.1) | (0.1) | |||||
Turnaround costs | (1.7) | (6.8) | |||||
Accounts payable | 37.2 | (9.3) | |||||
Accrued interest payable | 14.4 | 1.6 | |||||
Accrued salaries, wages and benefits | (6.8) | (11.3) | |||||
Other taxes payable | 2.9 | (1.0) | |||||
Other liabilities | (1.8) | (55.3) | |||||
Net cash provided by (used in) operating activities | 27.4 | (19.1) | |||||
Investing activities | |||||||
Additions to property, plant and equipment | (9.5) | (17.6) | |||||
Investment in unconsolidated affiliate | — | (3.8) | |||||
Proceeds from sale of unconsolidated affiliate | 5.0 | — | |||||
Proceeds from sale of business, net | — | 28.0 | |||||
Proceeds from sale of property, plant and equipment | 3.6 | 0.2 | |||||
Net cash provided by (used in) discontinued investing activities | 2.0 | (0.5) | |||||
Net cash provided by investing activities | 1.1 | 6.3 | |||||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | — | 4.5 | |||||
Repayments of borrowings — revolving credit facility | — | (4.7) | |||||
Repayments of borrowings — senior notes | (23.2) | — | |||||
Payments on finance lease obligations | (1.0) | (0.3) | |||||
Proceeds from inventory financing agreements | 279.2 | 220.4 | |||||
Payments on inventory financing agreements | (286.1) | (220.4) | |||||
Proceeds from other financing obligations | 0.3 | — | |||||
Payments on other financing obligations | (0.6) | (0.8) | |||||
Debt issuance costs | — | (3.6) | |||||
Contributions from Calumet GP, LLC | 0.1 | — | |||||
Net cash used in financing activities | (31.3) | (4.9) | |||||
Net decrease in cash, cash equivalents and restricted cash | (2.8) | (17.7) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 155.7 | 514.3 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 152.9 | $ | 496.6 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
NON-GAAP RECONCILIATIONS | ||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH | ||||||
(In millions) | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and | (Unaudited) | |||||
Net income (loss) | $ | 16.4 | $ | (4.8) | ||
Add: | ||||||
Interest expense | 32.3 | 45.2 | ||||
Depreciation and amortization | 28.2 | 29.7 | ||||
Income tax benefit | (0.1) | (0.2) | ||||
EBITDA | $ | 76.8 | $ | 69.9 | ||
Add: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 2.6 | $ | (2.0) | ||
Amortization of turnaround costs | 4.8 | 3.3 | ||||
(Gain) loss from debt extinguishment | (0.4) | 0.6 | ||||
Gain on sale of unconsolidated affiliate(3) | (1.2) | — | ||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | ||||
Equity based compensation and other items | 3.4 | 2.7 | ||||
Adjusted EBITDA | $ | 97.7 | $ | 75.0 | ||
Less: | ||||||
Replacement and environmental capital expenditures (1) | 6.2 | 6.6 | ||||
Cash interest expense (2) | 30.4 | 42.5 | ||||
Turnaround costs | 1.7 | 6.8 | ||||
Income (loss) from unconsolidated affiliates(3) | 3.8 | (3.7) | ||||
Income tax benefit | (0.1) | (0.2) | ||||
Distributable Cash Flow | $ | 55.7 | $ | 23.0 | ||
_______________ | |
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or |
(2) | Represents consolidated interest expense less non-cash interest expense. |
(3) | In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH | ||||||
(In millions) | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to | (Unaudited) | |||||
Distributable Cash Flow | $ | 55.7 | $ | 23.0 | ||
Add: | ||||||
Replacement and environmental capital expenditures (1) | 6.2 | 6.6 | ||||
Cash interest expense (2) | 30.4 | 42.5 | ||||
Turnaround costs | 1.7 | 6.8 | ||||
Income (loss) from unconsolidated affiliates (3) | 3.8 | (3.7) | ||||
Income tax benefit | (0.1) | (0.2) | ||||
Adjusted EBITDA | $ | 97.7 | $ | 75.0 | ||
Less: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 2.6 | $ | (2.0) | ||
Amortization of turnaround costs | 4.8 | 3.3 | ||||
(Gain) loss from debt extinguishment | (0.4) | 0.6 | ||||
Gain on sale of unconsolidated affiliate(3) | (1.2) | — | ||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | ||||
Equity based compensation and other items | 3.4 | 2.7 | ||||
EBITDA | $ | 76.8 | $ | 69.9 | ||
Add: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 2.6 | $ | (2.0) | ||
Cash interest expense (2) | (30.4) | (42.5) | ||||
Equity based compensation | 2.2 | 1.1 | ||||
Lower of cost or market inventory adjustment | (38.9) | (3.1) | ||||
(Income) loss from unconsolidated affiliates(3) | (3.8) | 3.7 | ||||
Gain on sale of unconsolidated affiliates(3) | (1.2) | — | ||||
Amortization of turnaround costs | 4.8 | 3.3 | ||||
(Gain) loss from debt extinguishment | (0.4) | 0.6 | ||||
Operating lease expense | 20.8 | — | ||||
Operating lease payments | (20.6) | — | ||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | ||||
Income tax benefit | 0.1 | 0.2 | ||||
Changes in assets and liabilities: | ||||||
Accounts receivable | (69.8) | 44.0 | ||||
Inventories | 31.9 | (7.5) | ||||
Other current assets | (3.5) | (8.5) | ||||
Derivative activity | (0.1) | (0.1) | ||||
Turnaround costs | (1.7) | (6.8) | ||||
Accounts payable | 37.2 | (9.3) | ||||
Accrued interest payable | 14.4 | 1.6 | ||||
Other current liabilities | (5.7) | (67.6) | ||||
Other | 1.0 | 3.4 | ||||
Net cash provided by (used in) operating activities | $ | 27.4 | $ | (19.1) | ||
_______________ | |
(1) | Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or |
(2) | Represents consolidated interest expense less non-cash interest expense. |
(3) | In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS) | ||||||
(In millions) | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Reconciliation of Segment Adjusted EBITDA to EBITDA and Net income (loss): | (Unaudited) | |||||
Segment Adjusted EBITDA | ||||||
Specialty products Adjusted EBITDA | $ | 56.3 | $ | 37.7 | ||
Fuel products Adjusted EBITDA | 41.4 | 38.7 | ||||
Discontinued operations Adjusted EBITDA | — | (1.4) | ||||
Total segment Adjusted EBITDA | $ | 97.7 | $ | 75.0 | ||
Less: | ||||||
Unrealized (gain) loss on derivative instruments | $ | 2.6 | $ | (2.0) | ||
Amortization of turnaround costs | 4.8 | 3.3 | ||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | ||||
(Gain) loss from debt extinguishment | (0.4) | 0.6 | ||||
Gain on sale of unconsolidated affiliate(1) | (1.2) | — | ||||
Equity based compensation and other items | 3.4 | 2.7 | ||||
EBITDA | $ | 76.8 | $ | 69.9 | ||
Less: | ||||||
Interest expense | $ | 32.3 | $ | 45.2 | ||
Depreciation and amortization | 28.2 | 29.7 | ||||
Income tax benefit | (0.1) | (0.2) | ||||
Net income (loss) | $ | 16.4 | $ | (4.8) | ||
(1) | In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF SEGMENT METRICS EXCLUDING LCM/LIFO | ||||||
(In millions) | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Reconciliation of Segment Metrics Excluding LCM/LIFO: | (Unaudited) | |||||
Specialty products segment Adjusted EBITDA | $ | 56.3 | $ | 37.7 | ||
LCM inventory adjustments | (6.6) | (2.2) | ||||
LIFO inventory layer adjustments | 0.9 | — | ||||
Specialty products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 50.6 | $ | 35.5 | ||
Fuels products segment Adjusted EBITDA | $ | 41.4 | $ | 38.7 | ||
LCM inventory adjustments | (32.3) | (0.9) | ||||
Fuels products segment Adjusted EBITDA (excluding LCM/LIFO) | $ | 9.1 | $ | 37.8 | ||
Continuing Operations Adjusted EBITDA | 97.7 | 76.4 | ||||
Discontinued Operations Adjusted EBITDA | — | (1.4) | ||||
Total Adjusted EBITDA | 97.7 | 75.0 | ||||
LCM inventory adjustments | (38.9) | (3.1) | ||||
LIFO inventory layer adjustments | 0.9 | — | ||||
Total Adjusted EBITDA (excluding LCM/LIFO) | $ | 59.7 | $ | 71.9 | ||
Specialty products segment gross profit | $ | 92.9 | $ | 69.6 | ||
LCM inventory adjustments | (6.6) | (2.2) | ||||
LIFO inventory layer adjustments | 0.9 | — | ||||
Specialty products segment gross profit (excluding LCM/LIFO) | $ | 87.2 | $ | 67.4 | ||
Fuel products segment gross profit | $ | 43.1 | $ | 43.6 | ||
LCM inventory adjustments | (32.3) | (0.9) | ||||
Fuel products segment gross profit (excluding LCM/LIFO) | $ | 10.8 | $ | 42.7 | ||
Reported Specialty products segment gross profit per barrel | $ | 38.07 | $ | 33.11 | ||
LCM/LIFO inventory adjustments per barrel | (2.34) | (1.05) | ||||
Specialty products segment gross profit per barrel (excluding LCM/LIFO) | $ | 35.73 | $ | 32.06 | ||
Reported Fuels products segment gross profit per barrel | $ | 5.85 | $ | 7.49 | ||
LCM/LIFO inventory adjustments per barrel | (4.38) | (0.15) | ||||
Fuels products segment gross profit per barrel (excluding LCM/LIFO) | $ | 1.47 | $ | 7.34 | ||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET LOSS | ||||||
(In millions) | ||||||
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Reconciliation of Net Income (Loss) to Adjusted Net Loss | (Unaudited) | |||||
Net income (loss) | $ | 16.4 | $ | (4.8) | ||
Add: | ||||||
LCM inventory adjustments | (38.9) | (3.1) | ||||
LIFO inventory layer adjustments | 0.9 | — | ||||
Unrealized (gain) loss on derivative instruments | 2.6 | (2.0) | ||||
(Gain) loss from debt extinguishment | (0.4) | 0.6 | ||||
Amortization of turnaround costs | 4.8 | 3.3 | ||||
Gain on sale of unconsolidated affiliate(1) | (1.2) | — | ||||
Loss on impairment and disposal of assets | 11.7 | 0.5 | ||||
Equity based compensation and other non-cash items | 3.4 | 2.7 | ||||
Adjusted net loss | $ | (0.7) | $ | (2.8) | ||
Adjusted loss per unit | $ | (0.01) | $ | (0.04) | ||
Average limited partner units - diluted | 78,175,007 | 78,045,360 | ||||
(1) | In 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC ("Biosyn") for the purposes of acquiring |
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-first-quarter-2019-results-300847889.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/10/20195/1/2019 - Calumet Specialty Products Partners, L.P. to Release First Quarter 2019 Results on May 10th
Calumet Specialty Products Partners, L.P. to Release First Quarter 2019 Results on May 10th
Source: PR Newswire
INDIANAPOLIS, May 1, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it plans to report results for the fiscal first quarter ended March 31st , 2019 on May 10th, 2019. A conference call to discuss the financial and operational results is scheduled for May 10th, 2019 at 9:00 AM ET.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 9294516. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-first-quarter-2019-results-on-may-10th-300842157.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/1/20193/7/2019 - Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Year End 2018 Results
Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Year End 2018 Results
Source: PR Newswire
INDIANAPOLIS, March 7, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of petroleum-based specialty products, today reported results for the quarter and year ended December 31, 2018, as follows:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||
Net income (loss) | $ | 18.1 | $ | (83.6) | $ | (55.1) | $ | (103.8) | |||||||
Adjusted net income (loss) | $ | 42.9 | $ | (55.2) | $ | 26.5 | $ | (60.2) | |||||||
Earnings (loss) per unit | $ | 0.23 | $ | (1.06) | $ | (0.69) | $ | (1.31) | |||||||
Adjusted earnings (loss) per unit | $ | 0.55 | $ | (0.71) | $ | 0.34 | $ | (0.78) | |||||||
Adjusted EBITDA | $ | 55.7 | $ | 41.2 | $ | 263.9 | $ | 317.2 | |||||||
Adjusted EBITDA (excluding LCM/LIFO) | $ | 107.0 | $ | 30.0 | $ | 300.8 | $ | 290.3 | |||||||
The Partnership's $18.1 million Net income, $0.23 of Earnings per unit, and Adjusted EBITDA of $55.7 million for the fourth quarter 2018 included a $51.3 million unfavorable net impact related to the non-cash lower of cost or market ("LCM") inventory adjustments and the liquidation of last-in, first-out ("LIFO") inventory layers. Excluding the impact of LCM, LIFO and other non-cash items, Adjusted net income, Adjusted earnings per unit, and Adjusted EBITDA (excluding LCM/LIFO) were $42.9 million, $0.55 per unit, and $107.0 million, respectively.
Investors are advised to review the Partnership's annual report on Form 10-K that will be filed today for further details on the 2018 results, as well as the investor relations section of the website where updated investor presentation for the fourth quarter 2018 has been provided. For detailed information on Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA, Adjusted EBITDA (excluding LCM/LIFO), Adjusted EBITDA margin, Adjusted earnings (loss) per unit, Specialty products segment gross profit (excluding LCM/LIFO), Fuel products segment gross profit (excluding LCM/LIFO) and a reconciliation of such measures to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Non-GAAP Reconciliations."
Management Commentary
"I am pleased to report record profitability results on a pro forma basis, which included over $107 million in Adjusted EBITDA for the fourth quarter and $301 million in Adjusted EBITDA for the fiscal year, after adjusting for non-cash inventory adjustments," said Tim Go, Chief Executive Officer of Calumet. "Our strong fourth quarter results were driven by gains across both our Specialty Products and Fuel Products segments, despite the seasonally weaker demand that is more typical for both businesses at the end of the year. As the year progressed, Calumet delivered improved execution and focus, as we implemented the strategic growth plans developed by our business teams earlier in the year. These plans were particularly impactful in our Specialty Products segment during the fourth quarter, as the segment benefited from improved utilization and enhanced performance in several key product categories. Additionally, the Fuel Products segment benefited from strong execution as it processed record volumes of discounted heavy Canadian crudes and had record diesel sales at our Great Falls refinery. Calumet's leverage has declined to 4.9x, after excluding the impact of non-cash inventory adjustments."
Go concluded, "These record results are directly tied to the hard work and commitment of our employees to reposition the Partnership for long-term success. We will remain steadfast in our efforts to improve our operational and financial performance through a culture focused on continuous improvement and by executing against our Self-Help initiatives. Phase I of our Self-Help program was completed in the fourth quarter after generating $182 million in incremental Adjusted EBITDA, successfully meeting its three-year goal. Phase II of the program is more focused on our Specialty Products business and seeks to capture another $100 million in Adjusted EBITDA over the coming three years, through recently completed improvement projects, new quick hit projects, and other supply chain initiatives. These programs are central to our efforts to both grow our profitability and to delever our balance sheet as Calumet continues its transformation to become the premier specialty petroleum products company in the world."
Specialty Products Segment | Results Summary
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Dollars in millions, except per barrel data) | |||||||||||||||
Specialty products segment gross profit | $ | 61.2 | $ | 64.2 | $ | 291.1 | $ | 319.2 | |||||||
Specialty products segment gross profit (excluding | $ | 72.9 | $ | 63.8 | $ | 297.2 | $ | 311.3 | |||||||
Specialty products segment Adjusted EBITDA | $ | 31.8 | $ | 30.8 | $ | 160.2 | $ | 186.5 | |||||||
Specialty products segment Adjusted EBITDA (excluding | $ | 44.1 | $ | 30.4 | $ | 166.3 | $ | 178.6 | |||||||
Specialty products segment gross profit per barrel | $ | 28.43 | $ | 30.07 | $ | 33.30 | $ | 33.93 | |||||||
Specialty products segment gross profit per barrel | $ | 33.86 | $ | 29.88 | $ | 34.00 | $ | 33.09 | |||||||
Specialty products segment Adjusted EBITDA Margin | 9.7 | % | 9.8 | % | 11.6 | % | 14.3 | % | |||||||
Specialty products segment Adjusted EBITDA Margin | 13.4 | % | 9.7 | % | 12.0 | % | 13.7 | % | |||||||
During the fourth quarter 2018, Specialty Products segment gross profit was $61.2 million and Adjusted EBITDA was $31.8 million, which included $12.3 million of unfavorable impact related to LCM and LIFO adjustments. Excluding these non-cash charges, fourth quarter segment gross profit (excluding LCM/LIFO) of $72.9 million, and Adjusted EBITDA (excluding LCM/LIFO) of $44.1 million improved 14% and 45%, respectively, versus fourth quarter 2017. Improved results were driven by strong operating performance across the business, which allowed the segment to capture higher margins on Solvent products and drive improved base oil volumes, despite ongoing weakness in the Paraffinic base oil market.
Fuel Products Segment | Results Summary
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Dollars in millions, except per barrel data) | |||||||||||||||
Fuel products segment gross profit | $ | 34.6 | $ | 33.1 | $ | 145.6 | $ | 179.0 | |||||||
Fuel products segment gross profit (excluding | $ | 71.4 | $ | 22.3 | $ | 176.4 | $ | 160.0 | |||||||
Fuel products segment Adjusted EBITDA | $ | 21.9 | $ | 10.7 | $ | 103.7 | $ | 127.8 | |||||||
Fuel products segment Adjusted EBITDA (excluding | $ | 60.9 | $ | (0.1) | $ | 134.5 | $ | 108.8 | |||||||
Fuel products segment gross profit per barrel (excluding | $ | 5.11 | $ | 4.07 | $ | 5.45 | $ | 4.61 | |||||||
Fuel products segment gross profit per barrel (excluding | $ | 10.55 | $ | 2.74 | $ | 6.60 | $ | 4.12 | |||||||
During the fourth quarter 2018, Fuel Products segment gross profit of $34.6 million and Adjusted EBITDA of $21.9 million both increased compared to the year-ago period, despite $39.0 million of unfavorable non-cash LCM and LIFO adjustments. After adjusting for these non-cash impacts, segment gross profit (excluding LCM/LIFO) performance increased by 220% to $71.4 million year-over-year, and Adjusted EBITDA (excluding LCM/LIFO) increased to $60.9 million versus fourth quarter 2017. Strong operating performance and execution against the Company's strategic plan drove these strong results and positioned the segment to capture expanded crude differentials and healthy diesel crack spreads, which were partially offset by a 6% year-over-year decrease in the benchmark Gulf Coast 2/1/1 crack spread. Quarterly Adjusted EBITDA excluding LCM and LIFO adjustments was $60.9 million, which increased significantly compared to the year-ago results for Adjusted EBITDA of $(0.1) million, which also included $16.8 million Adjusted EBITDA contribution from the previously divested Superior refinery. Segment gross profit per barrel also improved significantly, driven by widening WCS-WTI and Midland-WTI crude differentials and the year-over-year increase in refined product margins, which were partially offset by slightly lower volumes.
Partnership Liquidity
As of December 31, 2018, the Partnership had total liquidity of $451.4 million, comprised of $155.7 million of cash on hand, plus approximately $295.7 million of availability under its revolving credit facility. The borrowing base under the revolving credit facility was approximately $330.8 million and the company had $35.1 million in outstanding standby letters of credit and no outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
2019 Outlook
Operations Summary
The following table sets forth information about our combined operations, excluding the results of discontinued operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
Three Months Ended December 31, | Year Ended December 31, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
(In bpd) | (In bpd) | ||||||||
Total sales volume (1) | 96,967 | 111,522 | 97,104 | 132,082 | |||||
Total feedstock runs (2) | 91,972 | 108,415 | 94,137 | 128,624 | |||||
Facility production: (3) | |||||||||
Specialty products: | |||||||||
Lubricating oils | 12,202 | 13,155 | 11,931 | 14,606 | |||||
Solvents | 7,166 | 7,589 | 7,649 | 7,761 | |||||
Waxes | 1,596 | 1,381 | 1,279 | 1,423 | |||||
Packaged and synthetic specialty products (4) | 1,581 | 1,720 | 2,129 | 2,206 | |||||
Other | 1,544 | 1,177 | 2,113 | 1,811 | |||||
Total | 24,089 | 25,022 | 25,101 | 27,807 | |||||
Fuel products: | |||||||||
Gasoline | 20,751 | 29,461 | 20,323 | 35,713 | |||||
Diesel | 27,522 | 28,985 | 27,367 | 33,277 | |||||
Jet fuel | 2,084 | 4,054 | 2,895 | 5,368 | |||||
Asphalt, heavy fuel oils and other | 19,433 | 22,550 | 19,612 | 29,396 | |||||
Total | 69,790 | 85,050 | 70,197 | 103,754 | |||||
Total facility production (3) | 93,879 | 110,072 | 95,298 | 131,561 | |||||
________________ | |
(1) | 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. |
(2) | 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. |
(3) | Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. The difference between total facility production and total feedstock runs is primarily a result of the time lag between the input of feedstocks and the production of finished products and volume loss. |
(4) | Represents production of finished lubricants and specialty chemicals products, including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the consolidated statements of operations and consolidated statements of cash flows for the three months and years ended December 31, 2018 and 2017:
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(In millions) | (In millions) | ||||||||||
Realized gain (loss) on derivative instruments | $ | 6.0 | $ | (6.0) | $ | 3.6 | $ | (13.2) | |||
Unrealized gain on derivative instruments | 29.8 | 1.4 | 30.2 | 3.6 | |||||||
Total derivative gain (loss) reflected in the consolidated statements of operations | $ | 35.8 | $ | (4.6) | $ | 33.8 | $ | (9.6) | |||
Total gain (loss) on commodity derivative settlements | $ | 6.0 | $ | (6.0) | $ | 3.6 | $ | (13.2) | |||
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 as well as produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and strategic initiatives, (iii) our ability to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, and (iv) estimated 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 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 acquisitions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuels products 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; 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 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 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 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.
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 GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance and liquidity measures along with certain key operating metrics.
We use the following performance and liquidity measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
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); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) 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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
Adjusted EBITDA Margin: We define Adjusted EBITDA Margin for any period as Adjusted EBITDA divided by sales.
Adjusted net income (loss): We define Adjusted net income (loss) for any period as: net income (loss) adjusted for (a) impairment; (b) unrealized losses from mark to market accounting for hedging activities; (c) realized gains under derivative instruments excluded from the determination of net income (loss); (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); (e) debt refinancing fees, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (g) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; (h) lower of cost or market ("LCM") inventory adjustments and (i) the impact of liquidation of LIFO inventory layers.
Adjusted earnings (loss) per unit: We define Adjusted earnings (loss) per unit for any period as Adjusted net income (loss) divided by average limited partner units (diluted).
Adjusted EBITDA (excluding LCM/LIFO): We define Adjusted EBITDA (excluding LCM/LIFO) for any period as Adjusted EBITDA excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
Specialty products segment gross profit (excluding LCM/LIFO): We define Specialty products segment gross profit (excluding LCM/LIFO) for any period as Specialty products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation LIFO inventory layers.
Fuel products segment gross profit (excluding LCM/LIFO): We define fuels products segment gross profit (excluding LCM/LIFO) for any period as Fuel products segment gross profit excluding the impact of LCM inventory adjustments and the impact of liquidation of LIFO inventory layers.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this press release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes") and our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes and 2023 Notes and Adjusted 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:
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 pay distributions and interest costs. 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, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) should not be considered alternatives to Net loss, Operating income (loss), Net cash provided by (used in) operating activities, gross profit 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, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Adjusted EBITDA (excluding LCM/LIFO) do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) are only a few of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, Distributable Cash Flow, Adjusted net income (loss), Adjusted earnings (loss) per unit, Adjusted EBITDA (excluding LCM/LIFO) and segment gross profit (excluding LCM/LIFO) in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted net income (loss) to Net income (loss), our most directly comparable GAAP financial performance measure; Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated; and segment gross profit (excluding LCM/LIFO) to segment gross profit, our most directly comparable GAAP financial performance measure.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(In millions, except unit and per unit data) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Unaudited) | |||||||||||||||
Sales | $ | 848.0 | $ | 883.8 | $ | 3,497.5 | $ | 3,763.8 | |||||||
Cost of sales | 752.2 | 786.5 | 3,060.8 | 3,265.6 | |||||||||||
Gross profit | 95.8 | 97.3 | 436.7 | 498.2 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 21.2 | 19.9 | 58.2 | 65.7 | |||||||||||
General and administrative | 19.3 | 35.4 | 122.5 | 138.7 | |||||||||||
Transportation | 37.5 | 35.7 | 137.2 | 137.1 | |||||||||||
Taxes other than income taxes | 4.9 | 7.3 | 18.1 | 24.1 | |||||||||||
Asset impairment | — | 206.9 | — | 207.3 | |||||||||||
Gain on the sale of business, net | — | (236.0) | (4.8) | (236.0) | |||||||||||
Other | (3.5) | (3.5) | (17.4) | 3.3 | |||||||||||
Operating income | 16.4 | 31.6 | 122.9 | 158.0 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (35.1) | (47.3) | (155.5) | (183.1) | |||||||||||
Debt extinguishment costs | — | — | (58.8) | — | |||||||||||
Gain (loss) on derivative instruments | 35.8 | (4.6) | 33.8 | (9.6) | |||||||||||
Loss from unconsolidated affiliates | — | — | (3.7) | — | |||||||||||
Gain on sale of unconsolidated affiliates | — | — | 0.2 | — | |||||||||||
Other | 1.7 | 1.7 | 10.8 | 3.3 | |||||||||||
Total other income (expense) | 2.4 | (50.2) | (173.2) | (189.4) | |||||||||||
Net income (loss) before income taxes from continuing operations | 18.8 | (18.6) | (50.3) | (31.4) | |||||||||||
Income tax expense (benefit) from continuing operations | (0.3) | 0.1 | 0.7 | (0.1) | |||||||||||
Net income (loss) from continuing operations | $ | 19.1 | $ | (18.7) | $ | (51.0) | $ | (31.3) | |||||||
Net loss from discontinued operations, net of taxes | (1.0) | (64.9) | (4.1) | (72.5) | |||||||||||
Net income (loss) | $ | 18.1 | $ | (83.6) | $ | (55.1) | $ | (103.8) | |||||||
Allocation of net income (loss): | |||||||||||||||
Net income (loss) | $ | 18.1 | $ | (83.6) | $ | (55.1) | $ | (103.8) | |||||||
Less: | |||||||||||||||
General partner's interest in net income (loss) | 0.4 | (1.7) | (1.1) | (2.1) | |||||||||||
Net income (loss) available to limited partners | $ | 17.7 | $ | (81.9) | $ | (54.0) | $ | (101.7) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic | 78,086,357 | 77,784,534 | 77,943,992 | 77,598,950 | |||||||||||
Diluted | 78,218,831 | 77,784,534 | 77,943,992 | 77,598,950 | |||||||||||
Limited partners' interest basic and diluted net income (loss) per unit: | |||||||||||||||
From continuing operations | $ | 0.24 | $ | (0.24) | $ | (0.64) | $ | (0.40) | |||||||
From discontinued operations | (0.01) | (0.82) | (0.05) | (0.91) | |||||||||||
Limited partners' interest | $ | 0.23 | $ | (1.06) | $ | (0.69) | $ | (1.31) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 155.7 | $ | 164.3 | |||
Restricted cash | — | 350.0 | |||||
Accounts receivable, net | 198.0 | 354.1 | |||||
Inventories | 284.1 | 314.4 | |||||
Derivative assets | 18.3 | — | |||||
Prepaid expenses and other current assets | 13.9 | 8.7 | |||||
Total current assets | 670.0 | 1,191.5 | |||||
Property, plant and equipment, net | 1,098.1 | 1,159.2 | |||||
Investment in unconsolidated affiliates | 25.4 | 35.0 | |||||
Goodwill | 171.4 | 171.4 | |||||
Other intangible assets, net | 88.0 | 107.9 | |||||
Other noncurrent assets, net | 34.6 | 23.8 | |||||
Total assets | $ | 2,087.5 | $ | 2,688.8 | |||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 200.6 | $ | 282.3 | |||
Accrued interest payable | 30.7 | 52.5 | |||||
Accrued salaries, wages and benefits | 25.7 | 35.9 | |||||
Other taxes payable | 15.2 | 16.1 | |||||
Obligations under inventory financing agreements | 105.3 | 103.1 | |||||
Other current liabilities | 33.8 | 73.7 | |||||
Current portion of long-term debt | 3.8 | 354.1 | |||||
Derivative liabilities | — | 6.0 | |||||
Discontinued operations, current liabilities | — | 2.0 | |||||
Total current liabilities | 415.1 | 925.7 | |||||
Pension and postretirement benefit obligations | 4.5 | 3.1 | |||||
Other long-term liabilities | 1.5 | 1.9 | |||||
Long-term debt, less current portion | 1,600.7 | 1,638.2 | |||||
Total liabilities | 2,021.8 | 2,568.9 | |||||
Commitments and contingencies | |||||||
Partners' capital: | |||||||
Partners' capital | 74.4 | 127.1 | |||||
Accumulated other comprehensive loss | (8.7) | (7.2) | |||||
Total partners' capital | 65.7 | 119.9 | |||||
Total liabilities and partners' capital | $ | 2,087.5 | $ | 2,688.8 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Operating activities | |||||||
Net loss | $ | (55.1) | $ | (103.8) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||
Net loss from discontinued operations | 4.1 | 72.5 | |||||
Depreciation and amortization | 118.1 | 154.8 | |||||
Amortization of turnaround costs | 12.8 | 24.3 | |||||
Non-cash interest expense | 7.9 | 10.2 | |||||
Loss on debt extinguishment costs | 58.8 | — | |||||
Unrealized gain on derivative instruments | (30.2) | (3.6) | |||||
Asset impairment | — | 207.3 | |||||
Equity based compensation | (1.2) | 11.6 | |||||
Lower of cost or market inventory adjustment | 30.6 | (30.6) | |||||
Loss from unconsolidated affiliates | 3.7 | — | |||||
Gain on sale of unconsolidated affiliates | (0.2) | — | |||||
Gain on sale of business, net | (4.8) | (236.0) | |||||
Other non-cash activities | 6.8 | 10.2 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 109.8 | (158.9) | |||||
Inventories | (0.3) | (8.5) | |||||
Prepaid expenses and other current assets | (4.5) | (0.8) | |||||
Derivative activity | (0.5) | (0.5) | |||||
Turnaround costs | (27.9) | (14.5) | |||||
Other assets | — | (0.5) | |||||
Accounts payable | (78.2) | 70.6 | |||||
Accrued interest payable | (21.8) | 0.9 | |||||
Accrued salaries, wages and benefits | (5.6) | 18.0 | |||||
Other taxes payable | (0.9) | 0.9 | |||||
Other liabilities | (45.4) | (24.2) | |||||
Pension and postretirement benefit obligations | (0.1) | (2.7) | |||||
Net cash used in discontinued operating activities | (0.7) | (23.2) | |||||
Net cash provided (used in) by operating activities | 75.2 | (26.5) | |||||
Investing activities | |||||||
Additions to property, plant and equipment | (49.8) | (70.0) | |||||
Investment in unconsolidated affiliates | (3.8) | — | |||||
Proceeds from sale of unconsolidated affiliates | 9.9 | — | |||||
Proceeds from sale of property, plant and equipment | 0.4 | 0.3 | |||||
Proceeds from sale of business, net | 44.8 | 484.5 | |||||
Net cash provided by discontinued investing activities | 6.8 | 38.6 | |||||
Net cash provided by investing activities | 8.3 | 453.4 | |||||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 174.5 | 901.2 | |||||
Repayments of borrowings — revolving credit facility | (174.7) | (911.2) | |||||
Repayments of borrowings — senior notes | (400.0) | — | |||||
Payments on capital lease obligations | (1.6) | (2.5) | |||||
Proceeds from inventory financing agreements | 1,135.3 | 671.6 | |||||
Payments on inventory financing agreements | (1,128.3) | (571.5) | |||||
Proceeds from other financing activities | 4.7 | — | |||||
Payments on other financing obligations | (2.5) | (2.3) | |||||
Payments on extinguishment of debt | (46.6) | — | |||||
Debt issuance costs | (3.0) | (2.2) | |||||
Contributions from Calumet GP, LLC | 0.1 | 0.1 | |||||
Net cash provided (used in) by financing activities | (442.1) | 83.2 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (358.6) | 510.1 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 514.3 | 4.2 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 155.7 | $ | 514.3 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) | |||||||||||||||
TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||
(In millions) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow: | (Unaudited) | ||||||||||||||
Net income (loss) | $ | 18.1 | $ | (83.6) | $ | (55.1) | $ | (103.8) | |||||||
Add: | |||||||||||||||
Interest expense | 35.1 | 47.3 | 155.5 | 183.1 | |||||||||||
Depreciation and amortization | 29.3 | 37.9 | 118.1 | 168.5 | |||||||||||
Income tax expense (benefit) | (0.3) | — | 0.7 | (1.1) | |||||||||||
EBITDA | $ | 82.2 | $ | 1.6 | $ | 219.2 | $ | 246.7 | |||||||
Add: | |||||||||||||||
Unrealized gain on derivative instruments | $ | (29.8) | $ | (1.4) | $ | (30.2) | $ | (3.6) | |||||||
Realized loss on derivatives, not included in net income (loss) or settled in a prior period | (2.8) | — | — | — | |||||||||||
Debt extinguishment costs | — | — | 58.8 | — | |||||||||||
Amortization of turnaround costs | 4.1 | 3.9 | 12.8 | 24.3 | |||||||||||
Impairment charges (1) | — | 206.9 | — | 207.3 | |||||||||||
(Gain) loss on sale of business | 2.9 | (173.4) | (0.7) | (173.4) | |||||||||||
Equity based compensation and other non-cash items | (0.9) | 3.6 | 4.0 | 15.9 | |||||||||||
Adjusted EBITDA | $ | 55.7 | $ | 41.2 | $ | 263.9 | $ | 317.2 | |||||||
Less: | |||||||||||||||
Replacement and environmental capital expenditures (2) | $ | 8.4 | $ | 20.9 | $ | 24.4 | $ | 42.0 | |||||||
Cash interest expense (3) | 33.3 | 44.7 | 147.6 | 172.9 | |||||||||||
Turnaround costs | 16.8 | 3.2 | 27.9 | 14.5 | |||||||||||
Loss from unconsolidated affiliates | — | — | (3.7) | (0.4) | |||||||||||
Income tax expense (benefit) | (0.3) | — | 0.7 | (1.1) | |||||||||||
Distributable Cash Flow | $ | (2.5) | $ | (27.6) | $ | 67.0 | $ | 89.3 | |||||||
________________ | |
(1) | Impairment charges for 2017 primarily relate to $59.2 million of long-lived asset impairment charges related to the specialty products segment and $147.0 million of long-lived asset impairment charges related to the fuel products segment. |
(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 DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA | |||||||
TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||||||
(In millions) | |||||||
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by (used in) operating activities: | (Unaudited) | ||||||
Distributable Cash Flow | $ | 67.0 | $ | 89.3 | |||
Add: | |||||||
Replacement and environmental capital expenditures (1) | 24.4 | 42.0 | |||||
Cash interest expense (2) | 147.6 | 172.9 | |||||
Turnaround costs | 27.9 | 14.5 | |||||
Loss from unconsolidated affiliates | (3.7) | (0.4) | |||||
Income tax benefit (expense) | 0.7 | (1.1) | |||||
Adjusted EBITDA | $ | 263.9 | $ | 317.2 | |||
Less: | |||||||
Unrealized gain on derivative instruments | $ | (30.2) | $ | (3.6) | |||
Debt extinguishment costs | 58.8 | — | |||||
Amortization of turnaround costs | 12.8 | 24.3 | |||||
Impairment charges (3) | — | 207.3 | |||||
Loss on sale of unconsolidated affiliate | — | — | |||||
Gain on the sale of businesses, net | (0.7) | (173.4) | |||||
Non-cash equity-based compensation and other items | 4.0 | 15.9 | |||||
EBITDA | $ | 219.2 | $ | 246.7 | |||
Add: | |||||||
Unrealized gain on derivative instruments | (30.2) | (3.6) | |||||
Cash interest expense (2) | (147.6) | (172.9) | |||||
Gain on the sale of businesses, net | (0.7) | (173.4) | |||||
Asset impairment | — | 207.3 | |||||
Lower of cost or market inventory adjustment | 30.6 | (30.6) | |||||
Equity-based compensation | (1.2) | 11.6 | |||||
Loss from unconsolidated affiliates | 3.7 | 0.4 | |||||
Amortization of turnaround costs | 12.8 | 24.3 | |||||
Income tax benefit | (0.7) | 1.1 | |||||
Debt extinguishment costs | 58.8 | — | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 109.8 | (200.7) | |||||
Inventories | (0.3) | (18.1) | |||||
Other current assets | (4.5) | (0.5) | |||||
Turnaround costs | (27.9) | (14.5) | |||||
Derivative activity | (0.5) | (0.5) | |||||
Other assets | — | (0.5) | |||||
Accounts payable | (78.2) | 94.1 | |||||
Accrued interest payable | (21.8) | 0.9 | |||||
Other current liabilities | (51.9) | (5.3) | |||||
Other | 5.8 | 7.7 | |||||
Net cash provided by (used in) operating activities | $ | 75.2 | $ | (26.5) | |||
_________________ | |
(1) | 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. |
(2) | Represents consolidated interest expense less non-cash interest expense. |
(3) | Impairment charges for 2017 primarily relate to $59.2 million of long-lived asset impairment charges related to the specialty products segment and $147.0 million of long-lived asset impairment charges related to the fuel products segment. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS) | |||||||||||
(In millions) | |||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Reconciliation of Segment Adjusted EBITDA to Net income (loss): | (Unaudited) | ||||||||||
Segment Adjusted EBITDA: | |||||||||||
Specialty products Adjusted EBITDA | $ | 31.8 | $ | 30.8 | $ | 160.2 | $ | 186.5 | |||
Fuel products Adjusted EBITDA | 21.9 | 10.7 | 103.7 | 127.8 | |||||||
Discontinued operations Adjusted EBITDA | 2.0 | (0.3) | — | 2.9 | |||||||
Total segment and discontinued operations Adjusted EBITDA | $ | 55.7 | $ | 41.2 | $ | 263.9 | $ | 317.2 | |||
Less: | |||||||||||
Unrealized gain on derivative instruments | $ | (29.8) | $ | (1.4) | $ | (30.2) | $ | (3.6) | |||
Realized loss on derivatives, not included in net loss or settled in a prior period | (2.8) | — | — | — | |||||||
Debt extinguishment costs | — | — | 58.8 | — | |||||||
Amortization of turnaround costs | 4.1 | 3.9 | 12.8 | 24.3 | |||||||
Impairment charges (1) | — | 206.9 | — | 207.3 | |||||||
(Gain) loss on sale of businesses, net | 2.9 | (173.4) | (0.7) | (173.4) | |||||||
Equity-based compensation and other items | (0.9) | 3.6 | 4.0 | 15.9 | |||||||
EBITDA | $ | 82.2 | $ | 1.6 | $ | 219.2 | $ | 246.7 | |||
Less: | |||||||||||
Interest expense | $ | 35.1 | $ | 47.3 | $ | 155.5 | $ | 183.1 | |||
Depreciation and amortization | 29.3 | 37.9 | 118.1 | 168.5 | |||||||
Income tax benefit | (0.3) | — | 0.7 | (1.1) | |||||||
Net income (loss) | $ | 18.1 | $ | (83.6) | $ | (55.1) | $ | (103.8) | |||
_________________ | |
(1) | Impairment charges for 2017 primarily relate to $59.2 million of long-lived asset impairment charges related to the specialty products segment and $147.0 million of long-lived asset impairment charges related to the fuel products segment. |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||||
RECONCILIATION OF SEGMENT METRICS EXCLUDING LCM/LIFO | ||||||||||||||||
(In millions) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Reconciliation of Segment Metrics Excluding LCM/LIFO: | (Unaudited) | |||||||||||||||
Specialty Adjusted EBITDA | $ | 31.8 | $ | 30.8 | $ | 160.2 | $ | 186.5 | ||||||||
LCM inventory adjustments | 9.7 | (2.5) | 3.4 | (10.9) | ||||||||||||
LIFO inventory layer adjustments | 2.6 | 2.1 | 2.7 | 3.0 | ||||||||||||
Specialty Adjusted EBITDA (excluding LCM/LIFO) | $ | 44.1 | $ | 30.4 | $ | 166.3 | $ | 178.6 | ||||||||
Fuels Adjusted EBITDA | $ | 21.9 | $ | 10.7 | $ | 103.7 | $ | 127.8 | ||||||||
LCM inventory adjustments | 35.7 | (11.6) | 27.2 | (19.7) | ||||||||||||
LIFO inventory layer adjustments | 3.3 | 0.8 | 3.6 | 0.7 | ||||||||||||
Fuels Adjusted EBITDA (excluding LCM/LIFO) | $ | 60.9 | $ | (0.1) | $ | 134.5 | $ | 108.8 | ||||||||
Total Adjusted EBITDA | $ | 55.7 | $ | 41.2 | $ | 263.9 | $ | 317.2 | ||||||||
LCM inventory adjustments | 45.4 | (14.1) | 30.6 | (30.6) | ||||||||||||
LIFO inventory layer adjustments | 5.9 | 2.9 | 6.3 | 3.7 | ||||||||||||
Total Adjusted EBITDA (excluding LCM/LIFO) | $ | 107.0 | $ | 30.0 | $ | 300.8 | $ | 290.3 | ||||||||
Specialty products segment gross profit | $ | 61.2 | $ | 64.2 | $ | 291.1 | $ | 319.2 | ||||||||
LCM inventory adjustments | 9.1 | (2.5) | 3.4 | (10.9) | ||||||||||||
LIFO inventory layer adjustments | 2.6 | 2.1 | 2.7 | 3.0 | ||||||||||||
Specialty products segment gross profit (excluding LCM/LIFO) | $ | 72.9 | $ | 63.8 | $ | 297.2 | $ | 311.3 | ||||||||
Fuel products segment gross profit | $ | 34.6 | $ | 33.1 | $ | 145.6 | $ | 179.0 | ||||||||
LCM inventory adjustments | 33.5 | (11.6) | 27.2 | (19.7) | ||||||||||||
LIFO inventory layer adjustments | 3.3 | 0.8 | 3.6 | 0.7 | ||||||||||||
Fuel products segment gross profit (excluding LCM/LIFO) | $ | 71.4 | $ | 22.3 | $ | 176.4 | $ | 160.0 | ||||||||
Reported Specialty gross profit per barrel | $ | 28.43 | $ | 30.07 | $ | 33.30 | $ | 33.93 | ||||||||
LCM/LIFO inventory adjustments per barrel | 5.43 | (0.19) | 0.70 | (0.84) | ||||||||||||
Specialty gross profit per barrel (excluding LCM/LIFO) | $ | 33.86 | $ | 29.88 | $ | 34.00 | $ | 33.09 | ||||||||
Reported Fuels gross profit per barrel | $ | 5.11 | $ | 4.07 | $ | 5.45 | $ | 4.61 | ||||||||
LCM/LIFO inventory adjustments per barrel | 5.44 | (1.33) | 1.15 | (0.49) | ||||||||||||
Fuels gross profit per barrel (excluding LCM/LIFO) | $ | 10.55 | $ | 2.74 | $ | 6.60 | $ | 4.12 | ||||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) | ||||||||||||||||
(In millions) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) | (Unaudited) | |||||||||||||||
Net income (loss) | $ | 18.1 | $ | (83.6) | $ | (55.1) | $ | (103.8) | ||||||||
Add: | ||||||||||||||||
LCM inventory adjustments | 45.4 | (14.1) | 30.6 | (30.6) | ||||||||||||
LIFO inventory layer adjustments | 5.9 | 2.9 | 6.3 | 3.7 | ||||||||||||
Unrealized gain on derivative instruments | (29.8) | (1.4) | (30.2) | (3.6) | ||||||||||||
Realized loss on derivatives, not included in net income (loss) or settled in a prior period | (2.8) | — | — | — | ||||||||||||
Debt extinguishment costs | — | — | 58.8 | — | ||||||||||||
Amortization of turnaround costs | 4.1 | 3.9 | 12.8 | 24.3 | ||||||||||||
Impairment charges (1) | — | 206.9 | — | 207.3 | ||||||||||||
(Gain) loss on sale of business | 2.9 | (173.4) | (0.7) | (173.4) | ||||||||||||
Equity based compensation and other non-cash items | (0.9) | 3.6 | 4.0 | 15.9 | ||||||||||||
Adjusted net income (loss) | $ | 42.9 | $ | (55.2) | $ | 26.5 | $ | (60.2) | ||||||||
Adjusted net income (loss) per unit | $ | 0.55 | $ | (0.71) | $ | 0.34 | $ | (0.78) | ||||||||
Average limited partner units - diluted | 78,218,831 | 77,784,534 | 77,943,992 | 77,598,950 | ||||||||||||
_________________ | |
(1) | Impairment charges for 2017 primarily relate to $59.2 million of long-lived asset impairment charges related to the specialty products segment and $147.0 million of long-lived asset impairment charges related to the fuel products segment. |
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-fourth-quarter-and-year-end-2018-results-300808143.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/7/2019Calumet Specialty Products Partners, L.P. to Release Fourth Quarter and Full-Year 2018 Financial Results on March 7th
Source: PR Newswire
INDIANAPOLIS, Feb. 28, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it plans to report results for the fiscal fourth quarter and full-year ended December 31, 2018 on March 7th, 2019. A conference call to discuss the financial and operational results is scheduled for March 7th, 2019 at 9:00 AM ET.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 2981854. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-fourth-quarter-and-full-year-2018-financial-results-on-march-7th-300804396.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/28/2019Calumet Specialty Products Partners, L.P. Announces Completion of Phase I and Outlines Phase II of the Company's Self-Help Program; also Provides Updated Liquidity and LCM Outlook
Source: PR Newswire
INDIANAPOLIS, Feb. 4, 2019 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today released details on the completion of Phase I of its Self-Help program and provided expectations associated with Phase II of its program. Phase I targeted a $150 million to $200 million improvement in EBITDA through the end of 2018. The Company announced today that it has realized over $180 million in EBITDA from Phase I of its Self-Help program as of year-end 2018. In addition, it anticipates capturing an incremental $100 million in EBITDA from 2019 through 2021 from its Phase II Self-Help program. Approximately two-thirds of Phase II is focused on improving the Company's core Specialty business. The Company anticipates spending between $25 million to $40 million in capital to achieve these results over the new three-year period.
Tim Go, CEO of Calumet, said, "Over the last three years Calumet has transformed its business, from our vision and culture, to our streamlined asset portfolio and focus. A primary contributor to this transformation was Phase I of our Self-Help program, which successfully delivered over $180 million of incremental EBITDA from 2016 to 2018. Our team was able to accomplish this goal by focusing on three core functional areas: targeted cost reductions, raw material optimization and margin enhancements. Collectively this effort involved numerous projects and re-energized our culture to drive efficiencies, eliminate waste and expand our future opportunities. As we enter 2019, we remain committed to the discipline that our Self-Help program has brought us and have already started aggressively executing Phase II of the program with a focus of driving more Self-Help from our Specialties business."
Phase II of the new Self-Help Program focuses on the following:
Project | Cost to | Time to | Potential | Description |
Completed Improvement
| Completed in | 2019 | $20-30 million | -New packaging lines at Porter and Shreveport facilities to improve operating costs and expand capacity
-PDA modifications at Shreveport refinery to improve high value specialty yields
-San Antonio refinery ISOM and Great Falls refinery naphtha project to upgrade commodity intermediate streams |
New Quick-Hit Projects
| $15-25 million | 2019-2021 | $30-35 million | -New Versagel project in Karns City facility capitalizing on R&D initiatives
-Four debottlenecking projects at Cotton Valley's solvent facility decreasing feed costs and improving specialty yield
-Princeton facility vacuum tower project upgrading asphalt to specialty products
-BT commercialization project at Missouri esters plant |
Supply Chain Initiatives
| $10-15 million | 2019-2021 | $30-35 million | -Leverage new ERP platform to drive transportation savings and reduce procurement spend
-Streamline business by reducing non-core, high cost offerings
-Improve logistics infrastructure and reduce capital intensive off-sites |
1 Projected EBITDA contribution following completion of the projects |
Go continued, "Phase II of the Self-Help program is more focused on our unique Specialty business. Our Self-Help program has been a significant contributor to our cash flow throughout our transformation, especially in the most recent quarter where our liquidity increased from $406 million to over $450 million as of December 31, 2018. We believe that this next step in our continuous improvement program will keep Calumet on the path to becoming the leading specialty petroleum products company in the world."
Liquidity & Inventory Accounting Update
As of December 31, 2018, the Partnership had total liquidity of approximately $451 million, comprised of $156 million of unrestricted cash and availability under the revolving credit facility of $295 million. As of December 31, 2018, Calumet had a $330 million borrowing base, $35 million in outstanding standby letters of credit and no outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Given the significant drop in crude oil prices during the fourth quarter time frame, the Company expects to report a negative non-cash lower of cost or market ("LCM") adjustment to its inventories when it reports its fourth quarter results. While this is a non-cash charge intended to account for the mark-to-market changes in inventory asset value on the balance sheet, the adjustment will have a negative impact one the Company's headline Net Income (Loss) and Adjusted EBITDA results.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, and (iv) statements regarding future EBITDA contributions attributable to Phase II of our multi-year self-help program commencing in 2019. 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 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 acquisitions or dispositions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 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 and Quarterly Reports on Form 10-Q.
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.
View original content:SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/4/201911/30/2018 - Calumet Specialty Products Partners, L.P. To Attend Upcoming December Investor Conferences
Calumet Specialty Products Partners, L.P. To Attend Upcoming December Investor Conferences
Source: PR Newswire
INDIANAPOLIS, Nov. 30, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the Cowen & Company 8th Annual 2018 Energy & Natural Resources Conference on Tuesday, December 4th, and the Wells Fargo 17th Annual Midstream and Utility Symposium on December 5th. Both conferences are taking place in New York, NY.
Management will provide an overview of the Company's business during a live presentation at the Cowen Energy & Natural Resources Conference, and will conduct one-on-one meetings with investors who are registered to attend each respective conference. The presentation slides can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-upcoming-december-investor-conferences-300758236.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/30/2018Calumet Specialty Products Partners, L.P. Reports Third Quarter 2018 Results
Source: PR Newswire
INDIANAPOLIS, Nov. 9, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the third quarter ended September 30, 2018, as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(Dollars in millions, except per unit data) | |||||||||||||||
Net loss | $ | (16.5) | $ | (23.6) | $ | (73.2) | $ | (20.2) | |||||||
Limited partners' interest basic and diluted net loss per | $ | (0.21) | $ | (0.30) | $ | (0.92) | $ | (0.25) | |||||||
Adjusted EBITDA | $ | 54.3 | $ | 95.7 | $ | 208.2 | $ | 276.0 | |||||||
The Partnership's $16.5 million Net loss included $9.4 million of non-cash unrealized loss associated with the mark-to-market provision of our inventory financing agreement. Excluding this item, Net loss would have been $7.1 million for the third quarter. Adjusted EBITDA of $54.3 million in the third quarter of 2018 included, but was not limited to, the impact of an unfavorable lower of cost or market ("LCM") inventory adjustment of $2.3 million, $3.0 million of expenses related to the Company's enterprise resource planning ("ERP") system, and $0.3 million of realized losses on derivatives. Excluding these items, Net loss and Adjusted EBITDA would have been $1.5 million ($0.02 per common unit) and $59.9 million, respectively, for the third quarter. Results from the third quarter of 2017 included $32.0 million from divested operations.
For detailed information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of Net loss To EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"Planned downtime across our facilities resulted in lower volumes and profitability, as we completed the heaviest portion of our turnaround activity for 2018," said Tim Go, Chief Executive Officer of Calumet. "In our Specialty segment, we had roughly 40 days of downtime at our Princeton facility, which significantly impacted our volumes. However, we were able to capture more profit per barrel through improved product mix than we did in the year-ago period, despite facing the continued headwinds from higher crude prices and supply-driven weakness in the paraffinic base oil market. In our Fuels segment, the partial turnaround at our Great Falls refinery lasted roughly 32 days and impacted gasoline volumes. Our fuels business continued to perform well as its contributions to our consolidated results reflects the benefit of our cost-advantaged feedstock and the investments we have made to upgrade our fuel products. Additionally, we were able to capture another $10.8 million in EBITDA from our self-help program during the quarter which brings the program-to-date total to approximately $170 million versus the originally stated goal of $150-200 million. Given the success and the positive contributions to our profitability, we are launching Phase II of this multi-year self-help program that will start in 2019, with the goal of adding an additional $100 million in EBITDA to our results by year-end 2021."
Go concluded, "As we progress through our transformation, we remain committed to delivering on our strategic priorities. Currently our most important priority is de-leveraging, and while we have made considerable progress in this area over the last two years, there is still much work to be done to improve our leverage profile. Our liquidity continues to improve, supported by incremental free cash flow generation. Additionally, we continue to increase our exposure to cost-advantaged crudes, and we are now running roughly 19,000 bpd of WTI-Midland through our facilities, up from 10,500 bpd last quarter as our system takes advantage of wider crude differentials. Heading into the final quarter of the year, our team will be diligent in identifying additional opportunities to reduce our costs and enhance margins across our business as we work to deliver value to our unitholders."
Specialty Products Segment | Results Summary
Three Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Specialty products segment gross profit | $ | 72.3 | $ | 69.7 | |||
Specialty products segment Adjusted EBITDA | $ | 37.0 | $ | 43.0 | |||
Specialty products segment gross profit per barrel | $ | 34.17 | $ | 30.81 | |||
Specialty products TTM Adjusted EBITDA Margin | 11.6 | % | 14.1 | % | |||
Specialty products quarterly Adjusted EBITDA Margin | 10.6 | % | 14.1 | % | |||
The specialty products segment gross profit of $72.3 million rose compared to $69.7 million in the year-ago period, while Adjusted EBITDA of $37.0 million declined relative to $43.0 million in the year-ago period. Specialty products segment gross profit per barrel of $34.17 increased approximately 10.9% compared to $30.81 last year, but was down sequentially compared to $37.12 in the prior quarter. Performance was driven by contributions from the higher-margin Finished Lubricants business, which was more than offset by lower volumes due to planned turnaround activity at the Princeton facility, rising crude prices, larger LLS/WTI crude price differentials and pricing weakness across the paraffinic base oil market during the quarter. The specialty segment quarterly Adjusted EBITDA Margin results of 10.6%, declined compared to 14.1% in the year-ago period, driven primarily by the turnaround activity at the Princeton facility and the more than 40% rise in crude prices year-over-year.
Fuel Products Segment | Results Summary
Three Months Ended September 30, | |||||||
2018 | 2017 | ||||||
(Dollars in millions, except per barrel data) | |||||||
Fuel products segment gross profit | $ | 32.0 | $ | 58.0 | |||
Fuel products segment Adjusted EBITDA | $ | 17.5 | $ | 46.3 | |||
Fuel products segment gross profit per barrel | $ | 4.47 | $ | 5.18 | |||
Fuel products segment gross profit of $32.0 million and Adjusted EBITDA of $17.5 million decreased compared to the as reported figures of $58.0 million and $46.3 million in the year-ago period, respectively. After adjusting for the impact of the Superior refinery divestiture, quarterly Adjusted EBITDA results represented a slight decrease compared to last year's underlying performance results, driven primarily by planned downtime at Great Falls. Gross profit per barrel of $4.47 decreased compared to $5.18 in the Hurricane-impacted year-ago period, driven by the over 10% decrease in the benchmark Gulf Coast 2-1-1 crack spread year-over-year, offset somewhat by wider crude differentials for WCS and Midland priced WTI and by the impacts of the planned partial turnaround activity at the Great Falls refinery in the quarter.
Partnership Liquidity
As of September 30, 2018, the Partnership had total liquidity of $406.3 million, comprised of $65.5 million of unrestricted cash and availability under the revolving credit facility of $340.8 million. As of September 30, 2018, Calumet had a $370.1 million borrowing base, $29.2 million in outstanding standby letters of credit and $0.1 million outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2018 Capital Spending Forecast
Through the third quarter of 2018, total capital spending was $55.1 million, primarily related to maintenance and turnaround activity. For the full-year 2018, the Partnership is lowering guidance on total capital expenditures, now expected to come within the range of $70 to $80 million.
2018 Renewable Fuel Standard ("RFS") Compliance Impact Forecast
The Partnership records its outstanding renewable identification numbers ("RINs") obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 85 million RINs for the full-year 2018, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency ("EPA") to any of the Partnership's fuel refineries at a later time. Calumet expects to be able to satisfy a portion of its 2018 gross RINs obligation through internal blending efforts.
Operations Summary
The following table sets forth information about the Partnership's combined operations from continuing operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in the Partnership's fuel products segment.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
(In bpd) | (In bpd) | ||||||||||
Total sales volume (1) | 100,793 | 146,228 | 97,150 | 139,011 | |||||||
Total feedstock runs (2) | 101,220 | 137,528 | 94,866 | 135,435 | |||||||
Facility production: (3) | |||||||||||
Specialty products: | |||||||||||
Lubricating oils | 11,716 | 14,220 | 11,840 | 15,095 | |||||||
Solvents | 7,728 | 7,868 | 7,812 | 7,819 | |||||||
Waxes | 1,106 | 1,462 | 1,172 | 1,437 | |||||||
Packaged and synthetic specialty products (4) | 2,052 | 1,999 | 2,314 | 2,370 | |||||||
Other | 3,106 | 2,679 | 2,305 | 2,025 | |||||||
Total | 25,708 | 28,228 | 25,443 | 28,746 | |||||||
Fuel products: | |||||||||||
Gasoline | 21,514 | 38,655 | 20,179 | 37,819 | |||||||
Diesel | 30,818 | 36,335 | 27,315 | 34,723 | |||||||
Jet fuel | 3,060 | 5,381 | 3,168 | 5,812 | |||||||
Asphalt, heavy fuel oils and other | 21,174 | 31,969 | 19,673 | 31,703 | |||||||
Total | 76,566 | 112,340 | 70,335 | 110,057 | |||||||
Total facility production (3) | 102,274 | 140,568 | 95,778 | 138,803 | |||||||
_______________________________ | |||||||||||
(1) Total sales volume includes sales from the production at the Partnership's facilities and certain third-party facilities pursuant | |||||||||||
The decrease in total sales volume for the three and nine months ended September 30, 2018, as compared to the same periods | |||||||||||
(2) Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's | |||||||||||
The decrease in total feedstock runs for the three and nine months ended September 30, 2018, as compared to the same periods | |||||||||||
(3) Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other | |||||||||||
The change in total facility production for the three and nine months ended September 30, 2018, as compared to the same | |||||||||||
(4) Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, | |||||||||||
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and nine months ended September 30, 2018 and 2017:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In millions) | (In millions) | ||||||||||||||
Realized loss on derivative instruments | $ | (0.3) | $ | (2.3) | $ | (2.4) | $ | (7.2) | |||||||
Unrealized gain (loss) on derivative instruments | (2.4) | (9.7) | 0.4 | 2.2 | |||||||||||
Total derivative loss reflected in the unaudited | $ | (2.7) | $ | (12.0) | $ | (2.0) | $ | (5.0) | |||||||
Total loss on commodity derivative settlements | $ | (0.3) | $ | (2.3) | $ | (2.4) | $ | (7.2) | |||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on November 9, 2018 to discuss the financial and operational results for the third quarter 2018. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 3296895. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section and will remain available for at least 90 days.
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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, and (iv) statements regarding future Adjusted EBITDA contributions attributable to our multi-year self-help program commencing in 2019. 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 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 acquisitions or dispositions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; impact of possible divestitures of assets or business; our access to capital, including debt and equity markets, 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 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 and Quarterly Reports on Form 10-Q.
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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted EBITDA Margin. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash used in operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash used in operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted EBITDA Margin 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:
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 pay distributions and interest costs. We believe that excluding these transactions allows investors to meaningfully analyze trends and performance of our core cash operations.
We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
We define Adjusted EBITDA for any period as: (1) net income (loss); plus (2)(a) interest expense (including debt issuance and extinguishment costs); (b) income taxes; (c) depreciation and amortization; (d) impairment; (e) unrealized losses from mark-to-market accounting for hedging activities; (f) realized gains under derivative instruments excluded from the determination of net income (loss); (g) 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); (h) debt refinancing fees, premiums and penalties; (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes") and our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes and 2023 Notes and Adjusted 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 2017 Annual Report on Form 10-K and Quarterly Report on Form 10-Q, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to Net loss, Operating income, Net cash used in operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to Net cash used in operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 953.5 | $ | 1,026.5 | $ | 2,649.5 | $ | 2,880.0 | |||||||
Cost of sales | 849.2 | 898.8 | 2,308.6 | 2,479.1 | |||||||||||
Gross profit | 104.3 | 127.7 | 340.9 | 400.9 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Selling | 11.7 | 14.4 | 37.0 | 45.8 | |||||||||||
General and administrative | 30.7 | 40.4 | 103.2 | 103.4 | |||||||||||
Transportation | 36.4 | 29.9 | 99.7 | 101.2 | |||||||||||
Taxes other than income taxes | 5.9 | 6.8 | 13.2 | 16.8 | |||||||||||
Asset impairment | — | — | — | 0.4 | |||||||||||
Other operating (income) expense | (2.0) | 3.8 | (18.7) | 6.8 | |||||||||||
Operating income | 21.6 | 32.4 | 106.5 | 126.5 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (37.7) | (47.4) | (120.4) | (135.8) | |||||||||||
Debt extinguishment costs | — | — | (58.8) | — | |||||||||||
Loss on derivative instruments | (2.7) | (12.0) | (2.0) | (5.0) | |||||||||||
Other | 3.2 | 0.8 | 5.6 | 1.5 | |||||||||||
Total other expense | (37.2) | (58.6) | (175.6) | (139.3) | |||||||||||
Net loss from continuing operations before income taxes | (15.6) | (26.2) | (69.1) | (12.8) | |||||||||||
Income tax expense (benefit) from continuing operations | 0.4 | (0.1) | 1.0 | (0.2) | |||||||||||
Net loss from continuing operations | $ | (16.0) | $ | (26.1) | $ | (70.1) | $ | (12.6) | |||||||
Net income (loss) from discontinued operations, net of | (0.5) | 2.5 | (3.1) | (7.6) | |||||||||||
Net loss | $ | (16.5) | $ | (23.6) | $ | (73.2) | $ | (20.2) | |||||||
Allocation of net loss: | |||||||||||||||
Net loss | $ | (16.5) | $ | (23.6) | $ | (73.2) | $ | (20.2) | |||||||
Less: | . | ||||||||||||||
General partner's interest in net loss | (0.4) | (0.5) | (1.5) | (0.4) | |||||||||||
Net loss available to limited partners | $ | (16.1) | $ | (23.1) | $ | (71.7) | $ | (19.8) | |||||||
Weighted average limited partner units outstanding: | |||||||||||||||
Basic and Diluted | 77,783,879 | 77,632,784 | 77,643,006 | 77,537,531 | |||||||||||
Limited partners' interest basic and diluted net income | |||||||||||||||
From continuing operations | $ | (0.20) | $ | (0.33) | $ | (0.88) | $ | (0.16) | |||||||
From discontinued operations | (0.01) | 0.03 | (0.04) | (0.09) | |||||||||||
Limited partners' interest | $ | (0.21) | $ | (0.30) | $ | (0.92) | $ | (0.25) | |||||||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(In millions) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 65.5 | $ | 164.3 | |||
Restricted Cash | — | 350.0 | |||||
Accounts receivable, net | 281.0 | 354.1 | |||||
Inventories | 363.6 | 314.4 | |||||
Derivative assets | 10.7 | — | |||||
Prepaid expenses and other current assets | 14.5 | 8.7 | |||||
Total current assets | 735.3 | 1,191.5 | |||||
Property, plant and equipment, net | 1,115.8 | 1,159.2 | |||||
Investment in unconsolidated affiliates | 25.4 | 35.0 | |||||
Goodwill | 171.4 | 171.4 | |||||
Other intangible assets, net | 93.0 | 107.9 | |||||
Other noncurrent assets, net | 36.8 | 23.8 | |||||
Total assets | $ | 2,177.7 | $ | 2,688.8 | |||
LIABILITIES AND PARTNERS' CAPITAL | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 252.4 | $ | 282.3 | |||
Accrued interest payable | 45.0 | 52.5 | |||||
Accrued salaries, wages and benefits | 31.5 | 35.9 | |||||
Other taxes payable | 24.6 | 16.1 | |||||
Obligations under inventory financing agreements | 137.3 | 103.1 | |||||
Other current liabilities | 27.8 | 73.7 | |||||
Current portion of long-term debt | 2.9 | 354.1 | |||||
Derivative liabilities | — | 6.0 | |||||
Discontinued operations, current liabilities | 0.5 | 2.0 | |||||
Total current liabilities | 522.0 | 925.7 | |||||
Pension and postretirement benefit obligations | 2.9 | 3.1 | |||||
Other long-term liabilities | 1.5 | 1.9 | |||||
Long-term debt, less current portion | 1,600.1 | 1,638.2 | |||||
Total liabilities | 2,126.5 | 2,568.9 | |||||
Commitments and contingencies | |||||||
Partners' capital: | |||||||
Partners' capital | 55.5 | 127.1 | |||||
Accumulated other comprehensive loss | (4.3) | (7.2) | |||||
Total partners' capital | 51.2 | 119.9 | |||||
Total liabilities and partners' capital | $ | 2,177.7 | $ | 2,688.8 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Operating activities | |||||||
Net loss | $ | (73.2) | $ | (20.2) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Net loss from discontinued operations | 3.1 | 7.6 | |||||
Depreciation and amortization | 88.8 | 119.0 | |||||
Amortization of turnaround costs | 8.7 | 20.4 | |||||
Non-cash interest expense | 6.1 | 7.6 | |||||
Loss on debt extinguishment costs | 58.8 | — | |||||
Unrealized gain on derivative instruments | (0.4) | (2.2) | |||||
Asset impairment | — | 0.4 | |||||
Equity based compensation | 2.8 | 8.4 | |||||
Lower of cost or market inventory adjustment | (12.0) | (16.5) | |||||
Other non-cash activities | (3.0) | 8.8 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 29.0 | (119.2) | |||||
Inventories | (34.4) | 15.1 | |||||
Prepaid expenses and other current assets | (3.8) | (4.8) | |||||
Derivative activity | (0.4) | (0.3) | |||||
Turnaround costs | (11.1) | (11.3) | |||||
Other assets | — | (0.4) | |||||
Accounts payable | (32.5) | 18.8 | |||||
Accrued interest payable | (7.0) | 2.9 | |||||
Accrued salaries, wages and benefits | (4.5) | 17.8 | |||||
Other taxes payable | 8.5 | 7.0 | |||||
Other liabilities | (52.7) | (39.7) | |||||
Pension and postretirement benefit obligations | (0.1) | (0.5) | |||||
Net cash used in discontinued operations | — | (22.0) | |||||
Net cash used in operating activities | (29.3) | (3.3) | |||||
Investing activities | |||||||
Additions to property, plant and equipment | (41.3) | (45.3) | |||||
Investment in unconsolidated affiliate | (3.8) | — | |||||
Proceeds from sale of unconsolidated affiliate | 9.9 | — | |||||
Proceeds from sale of business, net | 44.8 | — | |||||
Proceeds from sale of property, plant and equipment | 0.3 | — | |||||
Net cash provided by (used in) discontinued investing activities | 3.6 | (0.3) | |||||
Net cash provided by (used in) investing activities | 13.5 | (45.6) | |||||
Financing activities | |||||||
Proceeds from borrowings — revolving credit facility | 166.8 | 781.2 | |||||
Repayments of borrowings — revolving credit facility | (166.9) | (791.3) | |||||
Repayments of borrowings — senior notes | (400.0) | — | |||||
Payments on capital lease obligations | (2.2) | (6.7) | |||||
Proceeds from inventory financing agreements | 16.4 | 91.6 | |||||
Proceeds from other financing obligations | 4.6 | — | |||||
Payments on other financing obligations | (2.3) | (1.5) | |||||
Payments on extinguishment of debt | (46.6) | — | |||||
Debt issuance costs | (2.9) | (2.2) | |||||
Contributions from Calumet GP, LLC | 0.1 | 0.1 | |||||
Net cash provided by (used in) financing activities | (433.0) | 71.2 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (448.8) | 22.3 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 514.3 | 4.2 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 65.5 | $ | 26.5 | |||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Reconciliation of Net loss to EBITDA, Adjusted (Unaudited) Net loss $ (16.5) $ (23.6) $ (73.2) $ (20.2) Add: Interest expense 37.7 47.4 120.4 135.8 Depreciation and amortization 29.6 48.6 88.8 130.6 Income tax expense (benefit) 0.4 (0.1) 1.0 (1.1) EBITDA $ 51.2 $ 72.3 $ 137.0 $ 245.1 Add: Unrealized (gain) loss on derivative $ 2.4 $ 9.7 $ (0.4) $ (2.2) Realized loss on derivatives, not included in 0.7 — 2.8 — Amortization of turnaround costs 2.7 6.4 8.7 20.4 Impairment charges — — — 0.4 Debt extinguishment costs — — 58.8 — Equity based compensation and other items (2.7) 7.3 1.3 12.3 Adjusted EBITDA $ 54.3 $ 95.7 $ 208.2 $ 276.0 Less: Replacement and environmental capital 4.4 10.2 16.0 21.1 Cash interest expense (2) 36.0 44.6 114.3 128.2 Turnaround costs 3.5 1.0 11.1 11.3 Loss from unconsolidated affiliates — (0.2) (3.7) (0.4) Income tax expense (benefit) 0.4 (0.1) 1.0 (1.1) Distributable Cash Flow $ 10.0 $ 40.2 $ 69.5 $ 116.9 ___________________________ (1) Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or (2) Represents consolidated interest expense less non-cash interest expense.
EBITDA and Distributable Cash Flow:
instruments
net loss or settled in a prior period
expenditures (1)
reduce operating costs and exclude turnaround costs. Environmental capital expenditures include asset additions to meet or
exceed environmental and operating regulations.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH USED IN OPERATING ACTIVITIES (In millions) Nine Months Ended September 30, 2018 2017 Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to (Unaudited) Distributable Cash Flow $ 69.5 $ 116.9 Add: Replacement and environmental capital expenditures (1) 16.0 21.1 Cash interest expense (2) 114.3 128.2 Turnaround costs 11.1 11.3 Loss from unconsolidated affiliates (3.7) (0.4) Income tax expense (benefit) 1.0 (1.1) Adjusted EBITDA $ 208.2 $ 276.0 Less: Unrealized gain on derivative instruments $ (0.4) $ (2.2) Realized loss on derivatives, not included in net loss or settled in a prior period 2.8 — Amortization of turnaround costs 8.7 20.4 Impairment charges — 0.4 Debt extinguishment costs 58.8 — Equity based compensation and other items 1.3 12.3 EBITDA $ 137.0 $ 245.1 Add: Unrealized gain on derivative instruments $ (0.4) $ (2.2) Cash interest expense (2) (114.3) (128.2) Asset impairment — 0.4 Equity based compensation 2.8 8.4 Lower of cost or market inventory adjustment (12.0) (19.1) Loss from unconsolidated affiliates 3.7 0.4 Amortization of turnaround costs 8.7 20.4 Debt extinguishment costs 58.8 — Income tax benefit (expense) (1.0) 1.1 Changes in assets and liabilities: Accounts receivable 29.0 (155.1) Inventories (34.4) 8.0 Other current assets (3.8) (4.8) Derivative activity (0.4) (0.3) Turnaround costs (11.1) (11.3) Other assets — (0.4) Accounts payable (32.5) 37.7 Accrued interest payable (7.0) 2.9 Other current liabilities (48.7) (14.7) Other (3.7) 8.4 Net cash used in operating activities $ (29.3) $ (3.3) ____________________ (1) Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or (2) Represents consolidated interest expense less non-cash interest expense.
Net cash used in operating activities:
reduce operating costs and exclude turnaround costs. Environmental capital expenditures include asset additions to meet or
exceed environmental and operating regulations.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | |||||||
(In millions) | |||||||
Three Months Ended September 30, | |||||||
2018 | 2017 | ||||||
Reconciliation of Segment Adjusted EBITDA to Net loss: | (Unaudited) | ||||||
Segment Adjusted EBITDA | |||||||
Specialty products Adjusted EBITDA | $ | 37.0 | $ | 43.0 | |||
Fuel products Adjusted EBITDA | 17.5 | 46.3 | |||||
Discontinued operations Adjusted EBITDA | (0.2) | 6.4 | |||||
Total segment Adjusted EBITDA | $ | 54.3 | $ | 95.7 | |||
Less: | |||||||
Unrealized loss on derivative instruments | $ | 2.4 | $ | 9.7 | |||
Realized loss on derivatives, not included in net loss or settled in a prior | 0.7 | — | |||||
Amortization of turnaround costs | 2.7 | 6.4 | |||||
Equity based compensation and other items | (2.7) | 7.3 | |||||
EBITDA | $ | 51.2 | $ | 72.3 | |||
Less: | |||||||
Interest expense | $ | 37.7 | $ | 47.4 | |||
Depreciation and amortization | 29.6 | 48.6 | |||||
Income tax expense (benefit) | 0.4 | (0.1) | |||||
Net loss | $ | (16.5) | $ | (23.6) | |||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-third-quarter-2018-results-300747260.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/9/201811/2/2018 - Calumet Specialty Products Partners, L.P. Announces the Addition of Dan Sheets to Board of Directors
Calumet Specialty Products Partners, L.P. Announces the Addition of Dan Sheets to Board of Directors
Source: PR Newswire
INDIANAPOLIS, Nov. 2, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced Daniel (Dan) L. Sheets has been appointed to the Board of Directors of Calumet's general partner, Calumet GP, LLC as of October 29th, 2018.
Mr. Sheets retired in 2018 following a 39-year career in the specialty chemical industry. The last 33 years of Mr. Sheets' career was spent working in various commercial, business development and general management capacities for Lubrizol, serving as the President of Lubrizol Additives for the last ten years. Through Mr. Sheets' tenure as President of Lubrizol Additives, he served as the head of a $4 billion business. Prior to his role as President he served as the primary manager of Lubrizol's engine oils business, the Company's largest business unit, where he successfully executed a significant business turnaround and margin enhancement initiative. Previous to his time spent in Lubrizol's core lubricants business, he began and led an additives division that served the paints, performance coatings, and inks industries and managed the division through multiple business acquisitions.
"I would like to personally welcome Dan to Calumet and thank him for his commitment to our Partnership," said Tim Go, CEO of Calumet Specialty. "Dan brings 39 years of industry experience and knowledge of the specialty chemical and lubricants business to our Board of Directors, and his appointment is reflective of the direction in which our business is evolving. His extensive experience and insights will be highly-valued as we continue our transformation to become the premier specialty products company in the marketplace."
The Board of Directors of Calumet GP, LLC is currently comprised of seven members. Mr. Sheets joins as the eighth Director and the fourth independent Director serving on the Board.
Mr. Sheets holds a Bachelor of Science degree in Electrical Engineering from Pennsylvania State University.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-the-addition-of-dan-sheets-to-board-of-directors-300743019.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/2/20189/28/2018 - Calumet Specialty Products Partners, L.P. To Attend Deutsche Bank 26th Annual Leveraged Finance Conference
Calumet Specialty Products Partners, L.P. To Attend Deutsche Bank 26th Annual Leveraged Finance Conference
Source: PR Newswire
INDIANAPOLIS, Sept. 28, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the 26th annual Deutsche Bank Leveraged Finance Conference in Scottsdale, AZ on Tuesday October 2, 2018.
Management will provide an overview of the Company's business during a live presentation and will conduct one-on-one meetings with investors who are registered to attend the conference. The presentation will be webcast live at 12:20 PM ET on October 2nd. In addition to the live webcast, these presentations can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-deutsche-bank-26th-annual-leveraged-finance-conference-300721155.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
9/28/2018Calumet Specialty Products Partners, L.P. Reports Second Quarter 2018 Results
Source: PR Newswire
INDIANAPOLIS, Aug. 9, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today reported results for the second quarter ended June 30, 2018, as follows:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(Dollars in millions, except per unit data) | |||||||||||||||
|
Net income (loss) |
$ |
(51.9) |
$ |
9.6 |
$ |
(56.7) |
$ |
3.4 | |||||||
|
Limited partners' interest basic and |
$ |
(0.65) |
$ |
0.12 |
$ |
(0.71) |
$ |
0.04 | |||||||
|
Adjusted EBITDA |
$ |
78.9 |
$ |
101.6 |
$ |
153.9 |
$ |
180.3 | |||||||
The Partnership's $51.9 million Net loss for the second quarter 2018 included $58.2 million of debt extinguishment costs. Excluding this impact, Net income for the second quarter 2018 would have been $6.3 million, and net income per unit would have been $0.08 per unit.
For detailed information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of Net Income (Loss) To EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"Calumet delivered another quarter of strong performance," said Tim Go, Chief Executive Officer of Calumet. "The results as reported were the third highest over the last three years even without the contribution of assets we divested last year. Our core specialty business was driven by continued growth in Finished Lubricants and strengthening demand for our Solvents business, which was offset by unplanned maintenance activity and the continued upward trajectory of crude prices. Our fuels business performed very well and had continued improvement across our portfolio, including record quarterly throughput volume at our Great Falls refinery. In addition, our self-help initiatives continue to allow us to capture value and enhance company-wide performance. Adjusting for the impact of divestitures from our portfolio, our results improved over 7% compared to underlying performance in the year-ago period."
Go concluded, "We remain committed to advancing our strategic priorities, which include reducing our leverage and growing our profitability. In the second quarter we fully redeemed our secured notes, meaningfully reducing our debt burden and lowering our interest expenses by $46 million per year. In addition, we started up a new isomerate unit at our San Antonio refinery, and the naphtha project at our Great Falls refinery, both of which will drive value enhancement and increase margin capture for our fuels segment in the second half of the year. Lastly, in June we increased our exposure to WTI-Midland based crudes from 6.5 kbpd to 10.5 kbpd to take advantage of wider crude differentials. As we move into the second half of the year, we will continue to seek out opportunities to enhance our yields, further reduce costs and expand our margins as we work to drive value for all of our unitholders."
Specialty Products Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2018 |
2017 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Specialty products segment gross profit |
$ |
88.0 |
$ |
103.0 |
|||
|
Specialty products segment Adjusted EBITDA |
$ |
53.7 |
$ |
67.1 |
|||
|
Specialty products segment gross profit per barrel |
$ |
37.12 |
$ |
41.87 |
|||
|
Specialty products TTM Adjusted EBITDA Margin |
12.5 |
% |
14.2 |
% | |||
|
Specialty products quarterly Adjusted EBITDA Margin |
14.0 |
% |
19.6 |
% | |||
The specialty products segment gross profit of $88.0 million and Adjusted EBITDA of $53.7 million were down compared to $103.0 million and $67.1 million in the year-ago period, respectively. Specialty products segment gross profit per barrel of $37.12 decreased approximately 11.3% compared to $41.87 in the year-ago period. Performance was driven by continued growth in the high-margin Finished Lubricants division and strengthening demand in the Company's solvents business, which was more than offset by unplanned maintenance activity, a shift in sales mix, and rising crude prices across the quarter. The specialty segment quarterly Adjusted EBITDA Margin results of 14.0% declined compared to 19.6% in the year-ago period, driven primarily by higher crude prices and the impact on sales mix due to a strong rebound in lower-margin solvents sales volumes.
Fuel Products Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2018 |
2017 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Fuel products segment gross profit |
$ |
35.4 |
$ |
40.7 |
|||
|
Fuel products segment Adjusted EBITDA |
$ |
25.6 |
$ |
34.0 |
|||
|
Fuel products segment gross profit per barrel |
$ |
5.09 |
$ |
3.92 |
|||
Fuel products segment gross profit of $35.4 million and Adjusted EBITDA of $25.6 million decreased compared to the as reported figures from the year-ago period. However, excluding the impact of the Superior refinery divestiture, quarterly Adjusted EBITDA results represent a 320% improvement to last year's underlying performance results. Gross profit per barrel of $5.09 marked an increase of 29.8% relative to the year-ago results, driven by the over 28% improvement in the benchmark Gulf Coast 2-1-1 crack spread, and widening crude differentials, offset somewhat by the impacts of unplanned maintenance in the quarter.
Partnership Liquidity
As of June 30, 2018, the Partnership had total liquidity of $381.5 million, comprised of $38.8 million of unrestricted cash and availability under the revolving credit facility of $342.7 million. As of June 30, 2018, Calumet had a $373.6 million borrowing base, $30.8 million in outstanding standby letters of credit and $0.1 million outstanding borrowings. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2018 Capital Spending Forecast
Through the second quarter of 2018, total capital spending was $34.3 million, primarily related to maintenance and turnaround activity. For the full-year 2018, the Partnership continues to anticipate total capital expenditures to come within range of its previously stated annual guidance of $80 to $90 million.
Third Quarter 2018 Timing Expectations
West Griffin, Executive Vice President and Chief Financial Officer of Calumet concluded, "We will file our quarterly earnings on time this quarter, and we anticipate filing our earnings results on time on a go forward basis, as we believe that the bulk of the issues that previously delayed our filings are now behind us."
2018 Renewable Fuel Standard ("RFS") Compliance Impact Forecast
The Partnership records its outstanding Renewable Identification Numbers ("RINs") obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 85 million RINs for the full-year 2018, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency ("EPA") to any of the Partnership's fuel refineries at a later time. Calumet expects to be able to satisfy a portion of its 2018 gross RINs obligation through internal blending efforts.
Operations Summary
The following table sets forth information about the Partnership's combined operations from continuing operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in the Partnership's fuel products segment.
|
Three Months Ended |
Six Months Ended | |||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||
|
(In bpd) |
(In bpd) | |||||||||||
|
Total sales volume (1) |
102,484 |
141,154 |
95,298 |
135,343 | ||||||||
|
Total feedstock runs (2) |
98,704 |
136,552 |
91,637 |
134,370 | ||||||||
|
Facility production: (3) |
||||||||||||
|
Specialty products: |
||||||||||||
|
Lubricating oils |
13,755 |
15,914 |
11,904 |
15,539 | ||||||||
|
Solvents |
7,726 |
8,239 |
7,854 |
7,794 | ||||||||
|
Waxes |
1,172 |
1,373 |
1,205 |
1,425 | ||||||||
|
Packaged and synthetic specialty products (4) |
2,458 |
2,551 |
2,448 |
2,559 | ||||||||
|
Other |
2,087 |
1,341 |
1,898 |
1,692 | ||||||||
|
Total |
27,198 |
29,418 |
25,309 |
29,009 | ||||||||
|
Fuel products: |
||||||||||||
|
Gasoline |
21,135 |
37,225 |
19,501 |
37,395 | ||||||||
|
Diesel |
27,993 |
34,787 |
25,534 |
33,904 | ||||||||
|
Jet fuel |
2,705 |
5,306 |
3,223 |
6,030 | ||||||||
|
Asphalt, heavy fuel oils and other |
20,869 |
33,699 |
18,909 |
31,569 | ||||||||
|
Total |
72,702 |
111,017 |
67,167 |
108,898 | ||||||||
|
Total facility production (3) |
99,900 |
140,435 |
92,476 |
137,907 | ||||||||
|
(1) |
Total sales volume includes sales from the production at the Partnership's 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in the Partnership's fuel products segment sales. |
|
The decrease in total sales volume for the three and six months ended June 30, 2018, as compared to the same periods in 2017, is due primarily to the divestiture of the Superior Refinery in November 2017 and decreased production at the Shreveport refinery and certain third-party processing facilities as a result of maintenance activities. | |
|
(2) |
Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
|
The decrease in total feedstock runs for the three and six months ended June 30, 2018, as compared to the same periods in 2017, is due primarily to the divestiture of the Superior refinery in November 2017 and decreased production at the Shreveport refinery and certain third-party processing facilities as a result of maintenance activities. | |
|
(3) |
Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at the Partnership's facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
|
The change in total facility production for the three and six months ended June 30, 2018, as compared to the same periods in 2017, is due primarily to the operational items discussed above in footnote 2. | |
|
(4) |
Represents production of branded and packaged specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2018 and 2017:
|
Three Months Ended |
Six Months Ended | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
(In millions) |
(In millions) | ||||||||||||||
|
Derivative loss reflected in cost of sales |
$ |
(2.1) |
$ |
— |
$ |
(2.1) |
$ |
— | |||||||
|
Derivative loss reflected in gross profit |
$ |
(2.1) |
$ |
— |
$ |
(2.1) |
$ |
— | |||||||
|
Realized loss on derivative instruments |
$ |
— |
$ |
— |
$ |
(2.1) |
$ |
(4.9) | |||||||
|
Unrealized gain on derivative instruments |
0.8 |
1.3 |
2.8 |
11.9 | |||||||||||
|
Total derivative gain (loss) reflected in the unaudited |
$ |
(1.3) |
$ |
1.3 |
$ |
(1.4) |
$ |
7.0 | |||||||
|
Total loss on commodity derivative settlements |
$ |
— |
$ |
— |
$ |
(2.1) |
$ |
(4.9) | |||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on August 9, 2018 to discuss the financial and operational results for the second quarter 2018. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 3296895. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section and will remain available for at least 90 days.
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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, (iv) the effectiveness of our enterprise resource planning ("ERP") system to further enhance operating efficiencies and provide more effective management of our business operations and (v) our expectation regarding the timing of the issuance of our 2018 third quarter earnings release and filing of our Quarterly Report Form 10-Q for the quarter ended September 30, 2018. 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 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 acquisitions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; 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, including debt and equity markets, 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 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 and Quarterly Reports on Form 10-Q.
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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted EBITDA Margin. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash used in operating activities, our most directly comparable liquidity measure. Both Net income (loss) and Net cash used in operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted EBITDA Margin 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:
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 pay distributions and interest costs. We believe that excluding these transactions allows investors to meaningfully analyze trends and performance of our core cash operations.
We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
We define Adjusted EBITDA for any period as: (1) net income (loss); plus (2)(a) interest expense (including debt issuance and extinguishment costs); (b) income taxes; (c) depreciation and amortization; (d) impairment; (e) unrealized losses from mark-to-market accounting for hedging activities; (f) realized gains under derivative instruments excluded from the determination of net income (loss); (g) 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); (h) debt refinancing fees, premiums and penalties; (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes") and our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes and 2023 Notes and Adjusted 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 2017 Annual Report on Form 10-K and Quarterly Report on Form 10-Q, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to Net income (loss), Operating income, Net cash used in operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to Net cash used in operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except unit and per unit data) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
Sales |
$ |
945.5 |
$ |
967.0 |
$ |
1,696.0 |
$ |
1,853.5 |
|||||||
|
Cost of sales |
822.1 |
823.3 |
1,459.4 |
1,580.3 |
|||||||||||
|
Gross profit |
123.4 |
143.7 |
236.6 |
273.2 |
|||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
10.6 |
15.1 |
25.3 |
31.4 |
|||||||||||
|
General and administrative |
31.9 |
32.4 |
72.5 |
63.0 |
|||||||||||
|
Transportation |
33.0 |
35.6 |
63.3 |
71.3 |
|||||||||||
|
Taxes other than income taxes |
5.4 |
4.8 |
7.3 |
10.0 |
|||||||||||
|
Asset impairment |
— |
— |
— |
0.4 |
|||||||||||
|
Other operating (income) expense |
(1.1) |
1.1 |
(16.7) |
3.0 |
|||||||||||
|
Operating income |
43.6 |
54.7 |
84.9 |
94.1 |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(37.5) |
(44.5) |
(82.7) |
(88.4) |
|||||||||||
|
Debt extinguishment costs |
(58.2) |
— |
(58.8) |
— |
|||||||||||
|
Gain on derivative instruments |
0.8 |
1.3 |
0.7 |
7.0 |
|||||||||||
|
Other |
0.9 |
0.5 |
2.4 |
0.7 |
|||||||||||
|
Total other expense |
(94.0) |
(42.7) |
(138.4) |
(80.7) |
|||||||||||
|
Net income (loss) from continuing operations before income taxes |
(50.4) |
12.0 |
(53.5) |
13.4 |
|||||||||||
|
Income tax expense (benefit) from continuing operations |
0.8 |
— |
0.6 |
(0.1) |
|||||||||||
|
Net income (loss) from continuing operations |
$ |
(51.2) |
$ |
12.0 |
$ |
(54.1) |
$ |
13.5 |
|||||||
|
Net loss from discontinued operations, net of tax |
(0.7) |
(2.4) |
(2.6) |
(10.1) |
|||||||||||
|
Net income (loss) |
$ |
(51.9) |
$ |
9.6 |
$ |
(56.7) |
$ |
3.4 |
|||||||
|
Allocation of net income (loss): |
|||||||||||||||
|
Net income (loss) |
$ |
(51.9) |
$ |
9.6 |
$ |
(56.7) |
$ |
3.4 |
|||||||
|
Less: |
. | ||||||||||||||
|
General partner's interest in net income (loss) |
(1.0) |
0.2 |
(1.1) |
0.1 |
|||||||||||
|
Non-vested share based payments |
— |
0.2 |
— |
0.2 |
|||||||||||
|
Net income (loss) available to limited partners |
$ |
(50.9) |
$ |
9.2 |
$ |
(55.6) |
$ |
3.1 |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic |
77,730,458 |
77,554,815 |
77,644,262 |
77,485,058 |
|||||||||||
|
Diluted |
77,730,458 |
77,714,112 |
77,644,262 |
77,725,656 |
|||||||||||
|
Limited partners' interest basic and diluted net income (loss) per unit: |
|||||||||||||||
|
From continuing operations |
$ |
(0.64) |
$ |
0.15 |
$ |
(0.68) |
$ |
0.17 |
|||||||
|
From discontinued operations |
(0.01) |
(0.03) |
(0.03) |
(0.13) |
|||||||||||
|
Limited partners' interest |
$ |
(0.65) |
$ |
0.12 |
$ |
(0.71) |
$ |
0.04 |
|||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) | |||||||
|
June 30, 2018 |
December 31, 2017 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
38.8 |
$ |
164.3 |
|||
|
Restricted Cash |
— |
350.0 |
|||||
|
Accounts receivable, net |
302.4 |
354.1 |
|||||
|
Inventories |
334.1 |
314.4 |
|||||
|
Derivative assets |
3.8 |
— |
|||||
|
Prepaid expenses and other current assets |
10.0 |
8.7 |
|||||
|
Total current assets |
689.1 |
1,191.5 |
|||||
|
Property, plant and equipment, net |
1,135.5 |
1,159.2 |
|||||
|
Investment in unconsolidated affiliates |
25.4 |
35.0 |
|||||
|
Goodwill |
171.4 |
171.4 |
|||||
|
Other intangible assets, net |
97.9 |
107.9 |
|||||
|
Other noncurrent assets, net |
25.2 |
23.8 |
|||||
|
Total assets |
$ |
2,144.5 |
$ |
2,688.8 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
257.9 |
$ |
282.3 |
|||
|
Accrued interest payable |
30.8 |
52.5 |
|||||
|
Accrued salaries, wages and benefits |
30.1 |
35.9 |
|||||
|
Other taxes payable |
21.3 |
16.1 |
|||||
|
Obligations under inventory financing agreements |
108.1 |
103.1 |
|||||
|
Other current liabilities |
22.3 |
73.7 |
|||||
|
Current portion of long-term debt |
2.9 |
354.1 |
|||||
|
Derivative liabilities |
0.1 |
6.0 |
|||||
|
Discontinued operations, current liabilities |
0.3 |
2.0 |
|||||
|
Total current liabilities |
473.8 |
925.7 |
|||||
|
Pension and postretirement benefit obligations |
3.0 |
3.1 |
|||||
|
Other long-term liabilities |
1.5 |
1.9 |
|||||
|
Long-term debt, less current portion |
1,599.6 |
1,638.2 |
|||||
|
Total liabilities |
2,077.9 |
2,568.9 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
71.6 |
127.1 |
|||||
|
Accumulated other comprehensive loss |
(5.0) |
(7.2) |
|||||
|
Total partners' capital |
66.6 |
119.9 |
|||||
|
Total liabilities and partners' capital |
$ |
2,144.5 |
$ |
2,688.8 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) | |||||||
|
Six Months Ended June 30, | |||||||
|
2018 |
2017 | ||||||
|
Operating activities |
|||||||
|
Net income (loss) |
$ |
(56.7) |
$ |
3.4 |
|||
|
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|||||||
|
Net loss from discontinued operations |
2.6 |
10.1 |
|||||
|
Depreciation and amortization |
59.2 |
74.2 |
|||||
|
Amortization of turnaround costs |
6.0 |
14.0 |
|||||
|
Non-cash interest expense |
4.4 |
4.8 |
|||||
|
Loss on debt extinguishment costs |
58.8 |
— |
|||||
|
Unrealized gain on derivative instruments |
(2.8) |
(11.9) |
|||||
|
Asset impairment |
— |
0.4 |
|||||
|
Equity based compensation |
3.0 |
3.3 |
|||||
|
Lower of cost or market inventory adjustment |
(15.0) |
(9.2) |
|||||
|
Other non-cash activities |
0.2 |
5.0 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
19.5 |
(25.9) |
|||||
|
Inventories |
(2.6) |
(38.3) |
|||||
|
Prepaid expenses and other current assets |
2.2 |
(2.1) |
|||||
|
Derivative activity |
(0.3) |
(0.3) |
|||||
|
Turnaround costs |
(7.6) |
(10.3) |
|||||
|
Accounts payable |
(17.7) |
8.1 |
|||||
|
Accrued interest payable |
(20.3) |
(0.1) |
|||||
|
Accrued salaries, wages and benefits |
(6.7) |
10.2 |
|||||
|
Other taxes payable |
5.2 |
0.5 |
|||||
|
Other liabilities |
(54.7) |
(55.6) |
|||||
|
Pension and postretirement benefit obligations |
— |
(0.4) |
|||||
|
Net cash used in discontinued operations |
— |
(15.5) |
|||||
|
Net cash used in operating activities |
(23.3) |
(35.6) |
|||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(33.3) |
(29.7) |
|||||
|
Investment in unconsolidated affiliate |
(3.8) |
— |
|||||
|
Proceeds from sale of unconsolidated affiliate |
9.9 |
— |
|||||
|
Proceeds from sale of business, net |
28.4 |
— |
|||||
|
Proceeds from sale of property, plant and equipment |
0.2 |
— |
|||||
|
Net cash (used in) provided by discontinued investing activities |
3.4 |
(0.3) |
|||||
|
Net cash (used in) provided by investing activities |
4.8 |
(30.0) |
|||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
141.0 |
606.9 |
|||||
|
Repayments of borrowings — revolving credit facility |
(141.1) |
(616.7) |
|||||
|
Repayments of borrowings — senior notes |
(400.0) |
— |
|||||
|
Payments on capital lease obligations |
(1.8) |
(4.5) |
|||||
|
Proceeds from (payments on) inventory financing agreements |
(4.0) |
105.4 |
|||||
|
Payments on other financing obligations |
(1.6) |
(1.1) |
|||||
|
Payments on extinguishment of debt |
(46.6) |
— |
|||||
|
Debt issuance costs |
(2.9) |
(2.1) |
|||||
|
Contributions from Calumet GP, LLC |
— |
0.1 |
|||||
|
Net cash provided by (used in) financing activities |
(457.0) |
88.0 |
|||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(475.5) |
22.4 |
|||||
|
Cash, cash equivalents and restricted cash at beginning of period |
514.3 |
4.2 |
|||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
38.8 |
$ |
26.6 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW (In millions) | ||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||
|
Reconciliation of Net income (loss) to EBITDA, |
(Unaudited) | |||||||||||||||
|
Net income (loss) |
$ |
(51.9) |
$ |
9.6 |
$ |
(56.7) |
$ |
3.4 |
||||||||
|
Add: |
||||||||||||||||
|
Interest expense |
37.5 |
44.5 |
82.7 |
88.4 |
||||||||||||
|
Depreciation and amortization |
29.5 |
40.9 |
59.2 |
82.0 |
||||||||||||
|
Income tax expense (benefit) |
0.8 |
(0.9) |
0.6 |
(1.0) |
||||||||||||
|
EBITDA |
$ |
15.9 |
$ |
94.1 |
$ |
85.8 |
$ |
172.8 |
||||||||
|
Add: |
||||||||||||||||
|
Unrealized gain on derivative instruments |
$ |
(0.8) |
$ |
(1.3) |
$ |
(2.8) |
$ |
(11.9) |
||||||||
|
Realized loss on derivatives, not included in |
2.1 |
— |
2.1 |
— |
||||||||||||
|
Amortization of turnaround costs |
2.7 |
6.6 |
6.0 |
14.0 |
||||||||||||
|
Impairment charges |
— |
— |
— |
0.4 |
||||||||||||
|
Debt extinguishment costs |
58.2 |
— |
58.8 |
— |
||||||||||||
|
Equity based compensation and other items |
0.8 |
2.2 |
4.0 |
5.0 |
||||||||||||
|
Adjusted EBITDA |
$ |
78.9 |
$ |
101.6 |
$ |
153.9 |
$ |
180.3 |
||||||||
|
Less: |
||||||||||||||||
|
Replacement and environmental capital expenditures (1) |
5.0 |
5.6 |
11.6 |
10.9 |
||||||||||||
|
Cash interest expense (2) |
35.8 |
42.0 |
78.3 |
83.6 |
||||||||||||
|
Turnaround costs |
0.8 |
9.8 |
7.6 |
10.3 |
||||||||||||
|
Loss from unconsolidated affiliates |
— |
(0.1) |
(3.7) |
(0.2) |
||||||||||||
|
Income tax expense (benefit) |
0.8 |
(0.9) |
0.6 |
(1.0) |
||||||||||||
|
Distributable Cash Flow |
$ |
36.5 |
$ |
45.2 |
$ |
59.5 |
$ |
76.7 |
||||||||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA (In millions) | ||||||||
|
Six Months Ended June 30, | ||||||||
|
2018 |
2017 | |||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and |
(Unaudited) | |||||||
|
Distributable Cash Flow |
$ |
59.5 |
$ |
76.7 |
||||
|
Add: |
||||||||
|
Replacement and environmental capital expenditures (1) |
11.6 |
10.9 |
||||||
|
Cash interest expense (2) |
78.3 |
83.6 |
||||||
|
Turnaround costs |
7.6 |
10.3 |
||||||
|
Loss from unconsolidated affiliates |
(3.7) |
(0.2) |
||||||
|
Income tax expense (benefit) |
0.6 |
(1.0) |
||||||
|
Adjusted EBITDA |
$ |
153.9 |
$ |
180.3 |
||||
|
Less: |
||||||||
|
Unrealized gain on derivative instruments |
$ |
(2.8) |
$ |
(11.9) |
||||
|
Realized loss on derivatives, not included in net income (loss) or |
2.1 |
— |
||||||
|
Amortization of turnaround costs |
6.0 |
14.0 |
||||||
|
Impairment charges |
— |
0.4 |
||||||
|
Debt extinguishment costs |
58.8 |
— |
||||||
|
Equity based compensation and other items |
4.0 |
5.0 |
||||||
|
EBITDA |
$ |
85.8 |
$ |
172.8 |
||||
|
Add: |
||||||||
|
Unrealized gain on derivative instruments |
$ |
(2.8) |
$ |
(11.9) |
||||
|
Cash interest expense (2) |
(78.3) |
(83.6) |
||||||
|
Asset impairment |
— |
0.4 |
||||||
|
Equity based compensation |
3.0 |
3.3 |
||||||
|
Lower of cost or market inventory adjustment |
(15.0) |
(8.0) |
||||||
|
Loss from unconsolidated affiliates |
3.7 |
0.2 |
||||||
|
Amortization of turnaround costs |
6.0 |
14.0 |
||||||
|
Debt extinguishment costs |
58.8 |
— |
||||||
|
Income tax benefit (expense) |
(0.6) |
1.0 |
||||||
|
Changes in assets and liabilities: |
||||||||
|
Accounts receivable |
19.5 |
(50.7) |
||||||
|
Inventories |
(2.6) |
(44.3) |
||||||
|
Other current assets |
2.2 |
(2.1) |
||||||
|
Derivative activity |
(0.3) |
(0.3) |
||||||
|
Turnaround costs |
(7.6) |
(10.3) |
||||||
|
Accounts payable |
(17.7) |
24.2 |
||||||
|
Accrued interest payable |
(20.3) |
(0.1) |
||||||
|
Other current liabilities |
(56.2) |
(44.8) |
||||||
|
Other |
(0.9) |
4.6 |
||||||
|
Net cash used in operating activities |
$ |
(23.3) |
$ |
(35.6) |
||||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS) (In millions) | |||||||
|
Three Months Ended June 30, | |||||||
|
2018 |
2017 | ||||||
|
Reconciliation of Segment Adjusted EBITDA to Net income (loss): |
(Unaudited) | ||||||
|
Segment Adjusted EBITDA |
|||||||
|
Specialty products Adjusted EBITDA |
$ |
53.7 |
$ |
67.1 |
|||
|
Fuel products Adjusted EBITDA |
25.6 |
34.0 |
|||||
|
Discontinued operations Adjusted EBITDA |
(0.4) |
0.5 |
|||||
|
Total segment Adjusted EBITDA |
$ |
78.9 |
$ |
101.6 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(0.8) |
$ |
(1.3) |
|||
|
Realized loss on derivatives, not included in net income (loss) or |
2.1 |
— |
|||||
|
Amortization of turnaround costs |
2.7 |
6.6 |
|||||
|
Debt extinguishment costs |
58.2 |
— |
|||||
|
Equity based compensation and other items |
0.8 |
2.2 |
|||||
|
EBITDA |
$ |
15.9 |
$ |
94.1 |
|||
|
Less: |
|||||||
|
Interest expense |
$ |
37.5 |
$ |
44.5 |
|||
|
Depreciation and amortization |
29.5 |
40.9 |
|||||
|
Income tax expense (benefit) |
0.8 |
(0.9) |
|||||
|
Net income (loss) |
$ |
(51.9) |
$ |
9.6 |
|||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-second-quarter-2018-results-300694688.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/9/2018Calumet Specialty Products Partners, L.P. to Release Second Quarter 2018 Financial Results on August 9th
Source: PR Newswire
INDIANAPOLIS, Aug. 7, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it will report results for the fiscal quarter ended June 30, 2018 on August 9th, 2018. A conference call to discuss the financial and operational results is scheduled for August 9th, 2018 at 9:00 AM ET.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 3296895. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-second-quarter-2018-financial-results-on-august-9th-300693149.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/7/20186/4/2018 - Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conferences In Early June
Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conferences In Early June
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, June 4, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that senior management will participate in the following investor conferences; Bank of America Merrill Lynch 2018 Energy Credit Conference on Wednesday, June 6, 2018 in New York, NY, and the Deutsche Bank 9th Annual Global Industrials and Basic Materials Conference in Chicago, IL on Thursday, June 7, 2018.
Management will provide an overview of the Company's business during live presentations and will be available to participate in one-on-one meetings with investors who are registered to attend the conference. The presentations will be webcast live at 3:40 pm EDT on June 6th, and 1:00 pm EDT on June 7th. In addition to the live webcast, these presentations can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-upcoming-investor-conferences-in-early-june-300659422.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/4/2018Calumet Specialty Products Partners, L.P. to File its Form 10-Q on May 15th and Will Host First Quarter Financial Results Conference Call on May 16th
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, May 14, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it will file its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2018 at close of business on May 15, 2018. The Partnership also announced that it plans to host a conference call to discuss the financial and operational results for its first quarter financial results on May 16, 2018 at 9:00 AM ET.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 6391948. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements about (i) the anticipated filing date for our quarterly report on Form 10-Q for the quarter ended March 31, 2018 and (ii) future business results. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
View original content:SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/14/2018Calumet Specialty Products Partners, L.P. Announces the Completion of the Early Redemption of the Partnership's 11.5% Senior Secured Notes due 2021
Source: PR Newswire
INDIANAPOLIS, April 10, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, and its wholly owned subsidiary Calumet Finance Corp., announced today that it has completed the early redemption of all of the $400 million aggregate principal amount of its outstanding 11.5% Senior Secured Notes due 2021 (the "Secured Notes"). In accordance with the conditions set forth in the April 20, 2016 indenture governing the Secured Notes (the "Indenture"), the Partnership paid the redemption price of 100% of the principal amount, plus accrued and unpaid interest, and a Make Whole Premium (as defined in the Indenture).
"The early redemption of our Secured Notes is indicative of the meaningful progress that Calumet has made in our turnaround efforts" said West Griffin, Chief Financial Officer of Calumet. "The redemption of the Secured Notes, which carried a high interest coupon and restrictive covenants, is an essential step towards the continued improvement to our capital structure and will further provide the Partnership with greater ability to capitalize on future opportunities."
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, no assurance can be given that our goals will be achieved, including statements related to the redemption of the Notes. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-the-completion-of-the-early-redemption-of-the-partnerships-11-5-senior-secured-notes-due-2021--300627181.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
4/10/2018Calumet Specialty Products Partners, L.P. Expects Revisions to Previously Announced 2017 Fourth Quarter and Full Year Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, March 19, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet"), a leading independent producer of petroleum-based specialty products, today announced it expects that its consolidated fourth quarter 2017 consolidated results will differ from the results presented in Calumet's earnings release issued on March 8, 2018. Calumet's revised financial statements will be included in the Form 10-K, which is expected to be filed by April 2, 2018. While the Partnership does not anticipate that the previously reported revenues and liquidity for the quarter will change materially, it does expect a decrease in its previously reported net income and Adjusted EBITDA for the fourth quarter 2017 with a commensurate decrease in those line items for the full year 2017.
West Griffin, Executive Vice President & Chief Financial Officer of Calumet, commented, "We are disappointed that the ongoing implementation and associated learning process related to our new enterprise resource planning system has led to this development. However, even with these expected changes, we believe, as previously communicated, that the Partnership will have demonstrated five consecutive quarters of trailing-twelve months Adjusted EBITDA improvement when we finalize our reporting and we remain well-positioned to continue our momentum and transformation in 2018."
Calumet continues to integrate its recently implemented enterprise resource planning ("ERP") system. Implementation issues have resulted in a delay in the financial statement closing process, as execution of certain financial statement controls, including timely account reconciliation, analysis, and review, have not operated as intended for all financial statement accounts. These matters have resulted in unanticipated delays in compiling financial reports and other data necessary to prepare and complete the financial statements required for the annual report on Form 10-K for the fiscal year ended December 31, 2017 (the "Form 10-K"). Calumet has filed a notification of late filing with the Securities and Exchange Commission with respect to the filing of its Form 10-K.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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 about (i) the impacted line items in connection with our consolidated fourth quarter 2017 and full year 2017 results, including the anticipated revisions in revenues, liquidity, net income and Adjusted EBITDA for such periods, (ii) the anticipated filing date for our annual report on Form 10-K for the fiscal year ended December 31, 2017, and (iii) the results of our trailing-twelve months Adjusted EBITDA and (iv) future business results. 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 materially from our historical experience and our present expectations or projections.
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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-expects-revisions-to-previously-announced-2017-fourth-quarter-and-full-year-results-300615823.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/19/2018Calumet Specialty Products Partners, L.P. Announces Redemption of all of its 11.5% Senior Secured Notes due 2021
Source: PR Newswire
INDIANAPOLIS, March 8, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") and its wholly owned subsidiary Calumet Finance Corp. announced today that they have called for redemption of all of the $400 million aggregate principal amount of their outstanding 11.5% Senior Secured Notes due 2021 (the "Notes"). The Partnership expects the redemption to be completed on April 9, 2018 (the "Redemption Date") and holders will receive a redemption price of 100.0% of the principal amount thereof, plus accrued and unpaid interest thereon up to, but not including, the Redemption Date, plus a Make Whole Premium (as defined in the Indenture, dated April 20, 2016, governing the Notes (the "Indenture")).
In accordance with the Indenture, the holders of the Notes will receive notice of the redemption, the redemption price and further instructions and details related to the process of such redemption.
Additionally, the Partnership has announced that last week it reached an agreement with its lenders for the renewal of its corporate revolving credit facility under a new five-year term.
"The early redemption of our secured notes serves as a clear indication that we have successfully turned the corner on our turnaround efforts," said West Griffin, Chief Financial Officer of Calumet Specialty Products Partners. "Furthermore, the improvements to the Partnership's financial condition have aided Calumet in achieving a five-year extension on its corporate revolver under better lending terms and conditions, reflective of the collective confidence that our lenders have in our ongoing improvement efforts. These actions combined are essential steps to improving our capital structure and further allowing the Partnership to capitalize on opportunities going forward."
This press release is neither an offer to purchase or sell securities, nor a solicitation of an offer to purchase or sell securities, including the Notes.
About Calumet Specialty Products Partners, L.P.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Forward-Looking Statements
This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, no assurance can be given that our goals will be achieved, including statements related to the redemption of the Notes. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-redemption-of-all-of-its-115-senior-secured-notes-due-2021-300610470.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/8/20183/8/2018 - Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Year End 2017 Results
Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Year End 2017 Results
Source: PR Newswire
INDIANAPOLIS, March 8, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of petroleum-based specialty products, today reported results for the quarter and year ended December 31, 2017, as follows:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(Dollars in millions, except per unit data) | |||||||||||||||
|
Net loss |
$ |
(64.9) |
$ |
(79.6) |
$ |
(85.1) |
$ |
(328.6) | |||||||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.82) |
$ |
(1.01) |
$ |
(1.07) |
$ |
(4.18) | |||||||
|
Adjusted EBITDA |
$ |
60.1 |
$ |
27.7 |
$ |
336.1 |
$ |
158.2 | |||||||
The Partnership's $64.9 million Net loss for the fourth quarter 2017 included the impact of: (1) a $172.2 million net gain on sale from the divestitures of both the Superior, Wisconsin refinery ("Superior Refinery") and Anchor Drilling Fluids USA, LLC; and (2) $205.7 million non-cash impairment charges primarily related to the revaluation of the Partnership's property, plant and equipment at several facilities. Without these adjustments Net loss for the fourth quarter 2017 would have been $31.4 million or $(0.39) per unit.
The Partnership's $60.1 million Adjusted EBITDA for the fourth quarter 2017 included: (1) an $8.7 million favorable net impact related to lower of cost or market ("LCM") inventory adjustments and last-in, first-out ("LIFO") inventory layers; and (2) a $12.7 million net expense related to enterprise resource planning ("ERP") system expenses and realized hedging losses. Without these impacts, Adjusted EBITDA for the fourth quarter 2017 would have been $64.1 million.
For detailed information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of Net Loss To EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"I am pleased to report that we have successfully turned the corner. We have delivered five consecutive quarters of improved earnings results on a year-over-year basis. We called our high-interest senior secured notes today. We extended our corporate revolver to a new five-year term, which is a great sign that our lenders have recognized the positive steps we have taken to improve the Partnership's operational and financial performance," said Tim Go, Chief Executive Officer of Calumet. "At this time last year, I stated that 2017 was going to be our year to execute. Our management team and all of our employees have delivered on that promise. Our self-help program continued to structurally improve our base business and exceed the run-rate of our initial projections, and we made significant strides towards our long-term strategic goals. Our liquidity continued to strengthen, and our leverage has declined significantly from roughly 13 times Adjusted EBITDA last year to under five times today. We also continued to expand our high-value specialty products business through new product innovation, production capacity expansions, and by growing our branded products business."
Go continued, "On the strategic front, 2017 was a very important year for Calumet, as we completed the divestitures of two significant non-core assets during the period: our Superior Refinery and our oilfield services business. These transactions will reduce volatility in our business and allow Calumet to focus on our core specialties business. Further, the proceeds from these transactions will allow us to retire our high-yield senior secured notes, with an expected closing date of April 9th."
Go concluded, "As we look forward, we need to carry the momentum we have generated into 2018 and beyond. We remain committed to driving further self-help across our portfolio and have set a 2018 target to realize an additional $40 to $50 million in Adjusted EBITDA. This will be driven by new product growth, margin enhancements and cost savings, some of which we have identified through our newly implemented ERP system. All of these initiatives will be key to our efforts to further reduce balance sheet leverage and enhance our profitability as we work to transform the business and execute our vision to become the premier specialty petroleum products company in the world."
Specialty Products Segment | Results Summary
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(Dollars in millions, except per barrel data) | |||||||||||||||
|
Specialty products segment gross profit |
$ |
70.6 |
$ |
59.3 |
$ |
325.6 |
$ |
338.1 |
|||||||
|
Specialty products segment Adjusted EBITDA |
$ |
38.6 |
$ |
28.0 |
$ |
194.3 |
$ |
188.9 |
|||||||
|
Specialty products segment gross profit per barrel |
$ |
33.07 |
$ |
25.30 |
$ |
34.61 |
$ |
34.57 |
|||||||
|
Specialty products segment Adjusted EBITDA Margin |
12.3 |
% |
9.2 |
% |
14.9 |
% |
15.1 |
% | |||||||
During the fourth quarter 2017, total specialty products segment gross profit increased 19.1% compared to the year-ago period, driven by healthier market conditions, offset somewhat by rising crude feedstock costs. Adjusted EBITDA for the fourth quarter 2017 was $38.6 million, which was a 37.9% improvement compared to the year-ago period. Specialty products segment gross profit per barrel in the period was $33.07, which grew 30.7% compared to last year's comparable quarter despite a nearly nine dollars per barrel increase in the cost of West Texas Intermediate ("WTI") during the fourth quarter. The segment's Adjusted EBITDA Margin for the fourth quarter was 12.3% versus 9.2% for the prior year comparable period. The segment also benefited from a $2.5 million favorable LCM inventory adjustment, which was partially offset by a $3.0 million LIFO inventory liquidation loss.
During fiscal year 2017, total specialty products sales volumes decreased 3.8% year-over-year, driven primarily by supply-chain disruptions that took place in the third quarter. However, annual segment Adjusted EBITDA increased due to stronger market conditions, record volume and profit performance in the higher-margin branded products division, and record production at the Cotton Valley refinery, which produces specialty solvents. These were partially offset by consistently rising feedstock costs throughout the fiscal year as WTI ended fiscal 2017 up 12.5%. Specialty products segment gross profit per barrel during fiscal year 2017 of $34.61 was up slightly compared to 2016 gross profit per barrel of $34.57, despite the increase in the price of crude. On an annual basis, the specialty products segment's Adjusted EBITDA Margin remained steady at approximately 15.0%. Specialty products segment performance for 2017 was also impacted by a $10.9 million favorable LCM inventory adjustment and a $3.9 million LIFO inventory liquidation loss.
Fuel Products Segment | Results Summary
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(Dollars in millions, except per barrel data) | |||||||||||||||
|
Fuel products segment gross profit |
$ |
43.0 |
$ |
13.2 |
$ |
188.9 |
$ |
48.2 |
|||||||
|
Fuel products segment Adjusted EBITDA |
$ |
21.8 |
$ |
3.2 |
$ |
138.9 |
$ |
(10.1) |
|||||||
|
Fuel products segment gross profit per barrel (excluding |
$ |
5.29 |
$ |
1.19 |
$ |
4.87 |
$ |
0.96 |
|||||||
During the fourth quarter 2017, improved fuel products segment gross profit performance was driven primarily by a 41.3% year-over-year increase in the benchmark Gulf Coast 2/1/1 crack spread, better product mix, and improved distribution channels. Fuel products segment sales volumes decreased by 23.2% primarily as a result of the sale of the Partnership's Superior Refinery during the fourth quarter. Quarterly Adjusted EBITDA and gross profit per barrel materially increased relative to the year-ago period, driven by a year-over-year increase in benchmark refined product margins and improved local rack differentials, offset somewhat by lower volumes. Fuel products segment performance for the fourth quarter 2017 was also impacted by a favorable LCM inventory adjustment of $11.6 million and a LIFO inventory liquidation loss of $0.8 million.
Gross profit for the fiscal year increased by nearly 300% to $188.9 million, as average refining margins rebounded meaningfully from the prior year levels, and initiatives to improve fuels profitability at the Shreveport refinery led to better capture and record premium gasoline sales. Fuel products segment results for fiscal year 2017 were positively impacted by a 36.0% average year-over-year improvement in the benchmark Gulf Coast 2/1/1 crack spread, lower RFS compliance costs and record production and record Canadian crude runs at the Great Falls refinery. For fiscal year 2017, total fuel products sales volumes were down slightly year-over-year. Also, the segment was impacted by a favorable LCM inventory adjustment of $19.7 million as well as a LIFO inventory liquidation loss of $0.7 million during fiscal year 2017.
Discontinued Operations Oilfield Services | Results Summary
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(Dollars in millions, except per barrel data) | |||||||||||||||
|
Oilfield services segment gross profit |
$ |
10.0 |
$ |
8.0 |
$ |
60.5 |
$ |
22.0 |
|||||||
|
Oilfield services segment Adjusted EBITDA |
$ |
(0.3) |
$ |
(3.5) |
$ |
2.9 |
$ |
(20.6) |
|||||||
U.S. land-based rig counts continued to improve relative to 2016 levels, experiencing a 41.2% increase across 2017. The rise in land-based rig count caused quarterly gross profit to increase to $10.0 million, compared to $8.0 million in the fourth quarter 2016, despite only retaining the asset for a portion of the quarter. Adjusted EBITDA of ($0.3) million improved relative to the $3.5 million loss experienced in the prior year period, despite the negative impacts of a $1.6 million unfavorable LCM inventory adjustment, that outpaced the LCM adjustment from the prior-year period. For the full-year, segment gross profit increased 175.0% to $60.5 million, and annual Adjusted EBITDA improved markedly to $2.9 million compared to the $20.6 million loss exhibited in the year prior. Improved results were driven by increased drilling activity, and the continued benefits of cost-containment efforts by the business segment. Calumet sold the oilfield services segment on November 21, 2017 and thus results from this segment are now included in discontinued operations.
Partnership Liquidity
As of December 31, 2017, the Partnership had availability under its revolving credit facility of $251.6 million, based on a $319.1 million borrowing base, $67.3 million in outstanding standby letters of credit and $0.2 million in outstanding borrowings. In addition, the Partnership had $513.8 million of cash on hand (including $350.0 million of restricted cash held for the purpose of redeeming the senior secured notes) as of December 31, 2017. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
2018 Outlook
2018 Renewable Fuel Standard ("RFS") Compliance Impact Forecast
The Partnership records its outstanding Renewable Identification Numbers ("RINs") obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 85 million RINs for the full-year 2018, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency ("EPA") to any of the Partnership's fuel refineries at a later time. Calumet expects to be able to satisfy a portion of its 2018 gross RINs obligation through internal blending efforts.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||
|
(In bpd) |
(In bpd) | ||||||||||
|
Total sales volume (1) |
111,522 |
140,521 |
132,082 |
140,180 |
|||||||
|
Total feedstock runs (2) |
108,415 |
132,271 |
128,624 |
134,163 |
|||||||
|
Facility production: (3) |
|||||||||||
|
Specialty products: |
|||||||||||
|
Lubricating oils |
13,155 |
15,373 |
14,606 |
14,697 |
|||||||
|
Solvents |
7,589 |
6,901 |
7,761 |
7,427 |
|||||||
|
Waxes |
1,381 |
1,728 |
1,423 |
1,571 |
|||||||
|
Packaged and synthetic specialty products (4) |
1,720 |
1,816 |
2,206 |
1,777 |
|||||||
|
Other |
1,177 |
1,835 |
1,811 |
1,850 |
|||||||
|
Total |
25,022 |
27,653 |
27,807 |
27,322 |
|||||||
|
Fuel products: |
|||||||||||
|
Gasoline |
29,461 |
39,719 |
35,713 |
37,713 |
|||||||
|
Diesel |
28,985 |
33,670 |
33,277 |
34,808 |
|||||||
|
Jet fuel |
4,054 |
5,806 |
5,368 |
5,306 |
|||||||
|
Asphalt, heavy fuel oils and other |
22,550 |
26,838 |
29,396 |
29,780 |
|||||||
|
Total |
85,050 |
106,033 |
103,754 |
107,607 |
|||||||
|
Total facility production (3) |
110,072 |
133,686 |
131,561 |
134,929 |
|||||||
|
(1) |
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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. |
|
(2) |
Total feedstock runs represent the barrels per day of crude oil and other feedstocks processed at our facilities and at certain thirdparty facilities pursuant to supply and/or processing agreements. |
|
(3) |
Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. The difference between total facility production and total feedstock runs is primarily a result of the time lag between the input of feedstocks and the production of finished products and volume loss. |
|
(4) |
Represents production of branded and packaged specialty products, including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the consolidated statements of operations and consolidated statements of cash flows for the three months and years ended December 31, 2017 and 2016:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In millions) |
(In millions) | ||||||||||||||
|
Derivative gain reflected in sales |
$ |
— |
$ |
14.1 |
$ |
— |
$ |
59.7 |
|||||||
|
Derivative loss reflected in cost of sales |
— |
(16.9) |
— |
(53.3) |
|||||||||||
|
Derivative gain (loss) reflected in gross profit |
$ |
— |
$ |
(2.8) |
$ |
— |
$ |
6.4 |
|||||||
|
Realized loss on derivative instruments |
(6.0) |
(3.9) |
(13.2) |
$ |
(24.0) |
||||||||||
|
Unrealized gain (loss) on derivative instruments |
1.4 |
(3.6) |
3.6 |
19.9 |
|||||||||||
|
Total derivative gain (loss) reflected in the consolidated |
$ |
(4.6) |
$ |
(10.3) |
$ |
(9.6) |
$ |
2.3 |
|||||||
|
Total loss on commodity derivative settlements |
$ |
(6.0) |
$ |
(3.9) |
$ |
(13.2) |
$ |
(24.0) |
|||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on March 8, 2018 to discuss the financial and operational results for the fourth quarter and full-year 2017. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 8674008. 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 section.
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 as well as produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives and margin enhancing measures to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures and (iv) estimated 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 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 acquisitions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuels products 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; 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 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; our ability to access the debt and equity markets; 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted EBITDA Margin. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash provided by (used in) operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash provided by (used in) operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA, Distributable Cash Flow and Adjusted EBITDA Margin 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:
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 pay distributions and interest costs. We believe that excluding these transactions allows investors to meaningfully analyze trends and performance of our core cash operations.
We define EBITDA for any period as net income (loss) before income (loss) from discontinued operations (net of income tax) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
We define Adjusted EBITDA for any period as: (1) net income (loss) before (loss) income from discontinued operations (net of income tax) plus (2)(a) interest expense (including debt issuance and extinguishment costs); (b) income taxes; (c) depreciation and amortization; (d) impairment; (e) unrealized losses from mark to market accounting for hedging activities; (f) realized gains under derivative instruments excluded from the determination of net income (loss); (g) 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); (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities; (b) realized losses under derivative instruments excluded from the determination of net income and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this press release are consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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 2016 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to Net loss, Operating income (loss), Net cash provided by (used in) operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(Unaudited) |
(Unaudited) |
||||||||||||||
|
Sales |
$ |
883.8 |
$ |
909.8 |
$ |
3,763.8 |
$ |
3,474.3 |
|||||||
|
Cost of sales |
770.2 |
837.3 |
3,249.3 |
3,088.0 |
|||||||||||
|
Gross profit |
113.6 |
72.5 |
514.5 |
386.3 |
|||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
17.4 |
17.1 |
63.2 |
69.8 |
|||||||||||
|
General and administrative |
35.3 |
28.8 |
138.6 |
105.8 |
|||||||||||
|
Transportation |
35.7 |
38.7 |
137.1 |
154.3 |
|||||||||||
|
Taxes other than income taxes |
4.1 |
5.3 |
20.9 |
19.3 |
|||||||||||
|
Asset impairment |
205.7 |
2.3 |
206.1 |
35.7 |
|||||||||||
|
Gain on the sale of business |
(235.5) |
— |
(235.5) |
— |
|||||||||||
|
Other |
— |
0.4 |
6.8 |
1.7 |
|||||||||||
|
Operating income (loss) |
50.9 |
(20.1) |
177.3 |
(0.3) |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(47.3) |
(44.0) |
(183.1) |
(161.7) |
|||||||||||
|
Loss on derivative instruments |
(4.6) |
(7.5) |
(9.6) |
(4.1) |
|||||||||||
|
Loss from unconsolidated affiliates |
— |
(0.1) |
— |
(18.3) |
|||||||||||
|
Loss on sale of unconsolidated affiliates |
— |
— |
— |
(113.4) |
|||||||||||
|
Other |
1.8 |
(0.3) |
3.4 |
1.2 |
|||||||||||
|
Total other expense |
(50.1) |
(51.9) |
(189.3) |
(296.3) |
|||||||||||
|
Net income (loss) before income taxes from continuing operations |
0.8 |
(72.0) |
(12.0) |
(296.6) |
|||||||||||
|
Income tax (benefit) expense from continuing operations |
0.1 |
(0.5) |
(0.1) |
0.2 |
|||||||||||
|
Net income (loss) from continuing operations |
$ |
0.7 |
$ |
(71.5) |
$ |
(11.9) |
$ |
(296.8) |
|||||||
|
Net loss from discontinued operations, net of tax |
(65.6) |
(8.1) |
(73.2) |
(31.8) |
|||||||||||
|
Net loss |
$ |
(64.9) |
$ |
(79.6) |
$ |
(85.1) |
$ |
(328.6) |
|||||||
|
Allocation of net loss: |
|||||||||||||||
|
Net loss |
$ |
(64.9) |
$ |
(79.6) |
$ |
(85.1) |
$ |
(328.6) |
|||||||
|
Less: |
|||||||||||||||
|
General partner's interest in net loss |
(1.3) |
(1.6) |
(1.7) |
(6.6) |
|||||||||||
|
Net loss available to limited partners |
$ |
(63.6) |
$ |
(78.0) |
$ |
(83.4) |
$ |
(322.0) |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic |
77,784,534 |
77,351,593 |
77,598,950 |
77,043,935 |
|||||||||||
|
Diluted |
78,269,113 |
77,351,593 |
77,598,950 |
77,043,935 |
|||||||||||
|
Limited partners' interest basic and diluted net income (loss) per |
|||||||||||||||
|
From continuing operations |
$ |
0.01 |
$ |
(0.91) |
$ |
(0.15) |
$ |
(3.77) |
|||||||
|
From discontinued operations |
(0.83) |
(0.10) |
(0.92) |
(0.41) |
|||||||||||
|
Limited partners' interest |
$ |
(0.82) |
$ |
(1.01) |
$ |
(1.07) |
$ |
(4.18) |
|||||||
|
Cash distributions declared per limited partner unit from |
$ |
— |
$ |
— |
$ |
— |
$ |
0.685 |
|||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
CONSOLIDATED BALANCE SHEETS | |||||||
|
(In millions) | |||||||
|
December 31, | |||||||
|
2017 |
2016 | ||||||
|
ASSETS |
(Unaudited) |
||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
163.8 |
$ |
4.2 |
|||
|
Restricted cash |
350.0 |
— |
|||||
|
Accounts receivable, net |
357.5 |
204.9 |
|||||
|
Inventories |
314.4 |
357.8 |
|||||
|
Derivative assets |
— |
0.8 |
|||||
|
Prepaid expenses and other current assets |
10.4 |
10.6 |
|||||
|
Discontinued operations, current assets |
— |
62.6 |
|||||
|
Total current assets |
1,196.1 |
640.9 |
|||||
|
Property, plant and equipment, net |
1,160.4 |
1,632.4 |
|||||
|
Investment in unconsolidated affiliates |
34.7 |
9.6 |
|||||
|
Goodwill |
171.4 |
177.2 |
|||||
|
Other intangible assets, net |
107.9 |
133.5 |
|||||
|
Other noncurrent assets, net |
23.8 |
40.3 |
|||||
|
Discontinued operations, noncurrent assets |
— |
91.3 |
|||||
|
Total assets |
$ |
2,694.3 |
$ |
2,725.2 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
274.2 |
$ |
275.9 |
|||
|
Accrued interest payable |
52.5 |
52.5 |
|||||
|
Accrued salaries, wages and benefits |
36.2 |
11.1 |
|||||
|
Other taxes payable |
10.3 |
20.4 |
|||||
|
Obligations under inventory financing agreements |
103.1 |
— |
|||||
|
Other current liabilities |
73.8 |
99.6 |
|||||
|
Current portion of long-term debt |
354.1 |
3.5 |
|||||
|
Derivative liabilities |
6.0 |
14.8 |
|||||
|
Discontinued operations, current liabilities |
2.3 |
20.4 |
|||||
|
Total current liabilities |
912.5 |
498.2 |
|||||
|
Pension and postretirement benefit obligations |
3.1 |
11.3 |
|||||
|
Other long-term liabilities |
1.9 |
3.3 |
|||||
|
Long-term debt, less current portion |
1,638.2 |
1,993.7 |
|||||
|
Total liabilities |
2,555.7 |
2,506.5 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
145.8 |
227.0 |
|||||
|
Accumulated other comprehensive loss |
(7.2) |
(8.3) |
|||||
|
Total partners' capital |
138.6 |
218.7 |
|||||
|
Total liabilities and partners' capital |
$ |
2,694.3 |
$ |
2,725.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
|
(In millions) | |||||||
|
Year Ended December 31, | |||||||
|
2017 |
2016 | ||||||
|
(Unaudited) |
|||||||
|
Operating activities |
|||||||
|
Net loss |
$ |
(85.1) |
$ |
(328.6) | |||
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|||||||
|
Net loss from discontinued operations |
73.2 |
31.8 | |||||
|
Depreciation and amortization |
154.8 |
152.0 | |||||
|
Amortization of turnaround costs |
24.3 |
33.2 | |||||
|
Non-cash interest expense |
10.2 |
9.6 | |||||
|
Unrealized gain on derivative instruments |
(3.6) |
(19.9) | |||||
|
Asset impairment |
206.1 |
35.7 | |||||
|
Equity based compensation |
11.9 |
5.6 | |||||
|
Lower of cost or market inventory adjustment |
(30.6) |
(38.4) | |||||
|
Loss from unconsolidated affiliates |
— |
18.3 | |||||
|
Loss on sale of unconsolidated affiliates |
— |
113.4 | |||||
|
Gain on sale of business |
(235.5) |
— | |||||
|
Other non-cash activities |
10.2 |
5.4 | |||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(162.2) |
(38.9) | |||||
|
Inventories |
(8.5) |
41.5 | |||||
|
Prepaid expenses and other current assets |
(2.5) |
(4.2) | |||||
|
Derivative activity |
(0.5) |
(19.0) | |||||
|
Turnaround costs |
(14.5) |
(8.7) | |||||
|
Other assets |
(0.5) |
(0.6) | |||||
|
Accounts payable |
62.0 |
18.4 | |||||
|
Accrued interest payable |
0.9 |
21.4 | |||||
|
Accrued salaries, wages and benefits |
18.0 |
(17.8) | |||||
|
Other taxes payable |
(4.9) |
3.6 | |||||
|
Other liabilities |
(24.1) |
(16.6) | |||||
|
Pension and postretirement benefit obligations |
(2.7) |
(2.0) | |||||
|
Net cash provided by (used in) discontinued operating activities |
(23.3) |
8.9 | |||||
|
Net cash provided by (used in) operating activities |
(26.9) |
4.1 | |||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(70.0) |
(139.2) | |||||
|
Investment in unconsolidated affiliates |
— |
(45.7) | |||||
|
Proceeds from sale of unconsolidated affiliates |
— |
29.0 | |||||
|
Proceeds from sale of property, plant and equipment |
0.3 |
1.7 | |||||
|
Proceeds from sale of business, net |
484.4 |
— | |||||
|
Net cash provided by discontinued investing activities |
38.6 |
— | |||||
|
Net cash provided by (used in) investing activities |
453.3 |
(154.2) | |||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
901.2 |
1,187.1 | |||||
|
Repayments of borrowings — revolving credit facility |
(911.2) |
(1,287.9) | |||||
|
Proceeds from borrowings — senior notes |
— |
393.1 | |||||
|
Repayments of borrowings — related party note |
— |
(75.0) | |||||
|
Payments on capital lease obligations |
(2.5) |
(8.5) | |||||
|
Proceeds from inventory financing agreements |
100.1 |
— | |||||
|
Proceeds from (payments on) other financing activities |
(2.3) |
8.5 | |||||
|
Debt issuance costs |
(2.2) |
(11.4) | |||||
|
Contributions from Calumet GP, LLC |
0.1 |
0.2 | |||||
|
Distributions to partners |
— |
(57.4) | |||||
|
Net cash provided by financing activities |
83.2 |
148.7 | |||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
509.6 |
(1.4) | |||||
|
Cash, cash equivalents and restricted cash at beginning of period |
4.2 |
5.6 | |||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
513.8 |
$ |
4.2 | |||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
RECONCILIATION OF NET LOSS | |||||||||||||||
|
TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||
|
(In millions) | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Reconciliation of Net loss to EBITDA, Adjusted EBITDA |
(Unaudited) | ||||||||||||||
|
Net loss |
$ |
(64.9) |
$ |
(79.6) |
$ |
(85.1) |
$ |
(328.6) |
|||||||
|
Add: |
|||||||||||||||
|
Interest expense |
47.3 |
44.0 |
183.1 |
161.7 |
|||||||||||
|
Depreciation and amortization |
37.9 |
44.0 |
168.5 |
171.1 |
|||||||||||
|
Income tax benefit |
— |
(0.6) |
(1.1) |
(7.7) |
|||||||||||
|
EBITDA |
$ |
20.3 |
$ |
7.8 |
$ |
265.4 |
$ |
(3.5) |
|||||||
|
Add: |
|||||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(1.4) |
$ |
3.6 |
$ |
(3.6) |
$ |
(19.9) |
|||||||
|
Realized gain (loss) on derivatives, not included in net |
— |
2.8 |
— |
(6.4) |
|||||||||||
|
Amortization of turnaround costs |
3.9 |
7.9 |
24.3 |
33.2 |
|||||||||||
|
Impairment charges (1) |
205.7 |
2.5 |
206.1 |
35.9 |
|||||||||||
|
Loss on sale of unconsolidated affiliate |
— |
— |
— |
113.9 |
|||||||||||
|
Gain on the sale of businesses, net |
(172.2) |
— |
(172.2) |
— |
|||||||||||
|
Non-cash equity-based compensation and other non- |
3.8 |
3.1 |
16.1 |
5.0 |
|||||||||||
|
Adjusted EBITDA |
$ |
60.1 |
$ |
27.7 |
$ |
336.1 |
$ |
158.2 |
|||||||
|
Less: |
|||||||||||||||
|
Replacement and environmental capital expenditures (2) |
$ |
20.6 |
$ |
9.4 |
$ |
41.7 |
$ |
29.3 |
|||||||
|
Cash interest expense (3) |
44.7 |
41.6 |
172.9 |
152.1 |
|||||||||||
|
Turnaround costs |
3.2 |
— |
14.5 |
8.7 |
|||||||||||
|
Loss from unconsolidated affiliates |
— |
— |
(0.4) |
(18.5) |
|||||||||||
|
Income tax benefit |
— |
(0.6) |
(1.1) |
(7.7) |
|||||||||||
|
Distributable Cash Flow |
$ |
(8.4) |
$ |
(22.7) |
$ |
108.5 |
$ |
(5.7) |
|||||||
|
(1) |
Impairment charges for 2017 primarily relates to $58.9 million of long-lived asset impairment charges related to the specialty products segment and $146.2 million of long-lived asset impairment charges related to the fuel products segment. |
|
(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 DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA | |||||||
|
TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||||||
|
(In millions) | |||||||
|
Year Ended December 31, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash |
(Unaudited) | ||||||
|
Distributable Cash Flow |
$ |
108.5 |
$ |
(5.7) | |||
|
Add: |
|||||||
|
Replacement and environmental capital expenditures (1) |
41.7 |
29.3 | |||||
|
Cash interest expense (2) |
172.9 |
152.1 | |||||
|
Turnaround costs |
14.5 |
8.7 | |||||
|
Loss from unconsolidated affiliates |
(0.4) |
(18.5) | |||||
|
Income tax benefit |
(1.1) |
(7.7) | |||||
|
Adjusted EBITDA |
$ |
336.1 |
$ |
158.2 | |||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(3.6) |
$ |
(19.9) | |||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
— |
(6.4) | |||||
|
Amortization of turnaround costs |
24.3 |
33.2 | |||||
|
Impairment charges (3) |
206.1 |
35.9 | |||||
|
Loss on sale of unconsolidated affiliate |
— |
113.9 | |||||
|
Gain on the sale of businesses, net |
(172.2) |
— | |||||
|
Non-cash equity-based compensation and other non-cash items |
16.1 |
5.0 | |||||
|
EBITDA |
$ |
265.4 |
$ |
(3.5) | |||
|
Add: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(3.6) |
$ |
(19.9) | |||
|
Cash interest expense (2) |
(172.9) |
(152.1) | |||||
|
Gain on the sale of businesses, net |
(172.2) |
— | |||||
|
Asset impairment |
206.1 |
35.7 | |||||
|
Lower of cost or market inventory adjustment |
(30.6) |
(39.2) | |||||
|
Non-cash equity-based compensation |
11.9 |
5.6 | |||||
|
Loss from unconsolidated affiliates |
0.4 |
18.7 | |||||
|
Loss on sale of unconsolidated affiliates |
— |
113.4 | |||||
|
Amortization of turnaround costs |
24.3 |
33.2 | |||||
|
Income tax benefit |
1.1 |
7.7 | |||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(204.0) |
(28.4) | |||||
|
Inventories |
(18.1) |
49.6 | |||||
|
Prepaid expenses and other current assets |
(2.2) |
(3.5) | |||||
|
Turnaround costs |
(0.5) |
(8.7) | |||||
|
Derivative activity |
(14.5) |
(19.0) | |||||
|
Other assets |
(0.5) |
(0.6) | |||||
|
Accounts payable |
85.5 |
21.4 | |||||
|
Accrued interest payable |
0.9 |
21.4 | |||||
|
Other current liabilities |
(11.0) |
(31.1) | |||||
|
Other, including changes in noncurrent liabilities |
7.6 |
3.4 | |||||
|
Net cash provided by (used in) operating activities |
$ |
(26.9) |
$ |
4.1 | |||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
(3) |
Impairment charges for 2017 primarily relates to $58.9 million of long-lived asset impairment charges related to the specialty products segment and $146.2 million of long-lived asset impairment charges related to the fuel products segment. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | |||||||||||||||
|
(In millions) | |||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Reconciliation of Segment Adjusted EBITDA to Net loss: |
(Unaudited) | ||||||||||||||
|
Segment Adjusted EBITDA: |
|||||||||||||||
|
Specialty products Adjusted EBITDA |
$ |
38.6 |
$ |
28.0 |
$ |
194.3 |
$ |
188.9 |
|||||||
|
Fuel products Adjusted EBITDA |
21.8 |
3.2 |
138.9 |
(10.1) |
|||||||||||
|
Discontinued operations Adjusted EBITDA |
(0.3) |
(3.5) |
2.9 |
(20.6) |
|||||||||||
|
Total segment and discontinued operations Adjusted EBITDA |
$ |
60.1 |
$ |
27.7 |
$ |
336.1 |
$ |
158.2 |
|||||||
|
Less: |
|||||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(1.4) |
$ |
3.6 |
$ |
(3.6) |
$ |
(19.9) |
|||||||
|
Realized gain (loss) on derivatives, not included in net loss or |
— |
2.8 |
— |
(6.4) |
|||||||||||
|
Amortization of turnaround costs |
3.9 |
7.9 |
24.3 |
33.2 |
|||||||||||
|
Impairment charges (1) |
205.7 |
2.5 |
206.1 |
35.9 |
|||||||||||
|
Loss on sale of unconsolidated affiliate |
— |
— |
— |
113.9 |
|||||||||||
|
Gain on sale of businesses, net |
(172.2) |
— |
(172.2) |
— |
|||||||||||
|
Non-cash equity-based compensation and other non-cash |
3.8 |
3.1 |
16.1 |
5.0 |
|||||||||||
|
EBITDA |
$ |
20.3 |
$ |
7.8 |
$ |
265.4 |
$ |
(3.5) |
|||||||
|
Less: |
|||||||||||||||
|
Interest expense |
$ |
47.3 |
$ |
44.0 |
$ |
183.1 |
$ |
161.7 |
|||||||
|
Depreciation and amortization |
37.9 |
44.0 |
168.5 |
171.1 |
|||||||||||
|
Income tax benefit |
— |
(0.6) |
(1.1) |
(7.7) |
|||||||||||
|
Net loss |
$ |
(64.9) |
$ |
(79.6) |
$ |
(85.1) |
$ |
(328.6) |
|||||||
|
(1) |
Impairment charges for 2017 primarily relates to $58.9 million of long-lived asset impairment charges related to the specialty products segment and $146.2 million of long-lived asset impairment charges related to the fuel products segment. |
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-fourth-quarter-and-year-end-2017-results-300610587.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/8/2018Calumet Specialty Products Partners, L.P. To Release Fourth Quarter and Full Year 2017 Results on Thursday March 8th
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Feb. 28, 2018 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it will report results for the fourth quarter and full year 2017 on Thursday, March 8, 2018. A conference call is scheduled for 9:00 AM ET on March 8, 2018 to discuss the financial and operational results for the fourth quarter.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 8674008. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 and produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-fourth-quarter-and-full-year-2017-results-on-thursday-march-8th-300606131.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/28/2018Calumet Specialty Products Partners, L.P. Reports Third Quarter 2017 Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Dec. 28, 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 fuel products, today reported results for the third quarter ended September 30, 2017, as follows:
|
Three Months Ended September 30, | ||||||||||
|
2017 |
2016 | |||||||||
|
(Dollars in millions, except per unit data) | ||||||||||
|
Sales |
$ |
1,097.4 |
$ |
966.6 |
||||||
|
Net loss |
$ |
(23.6) |
$ |
(33.4) |
||||||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.30) |
$ |
(0.42) |
||||||
|
Adjusted EBITDA |
$ |
95.7 |
$ |
53.9 |
||||||
|
Sales volumes (thousand barrels per day) |
146.2 |
141.5 |
||||||||
|
Net debt/Adjusted EBITDA |
6.6x |
21.8x | ||||||||
|
Liquidity |
$ |
412.7 |
$ |
388.2 |
||||||
The Partnership's $23.6 million net loss and Adjusted EBITDA of $95.7 million for third quarter 2017 included, but is not limited to, the impact of a favorable lower of cost or market ("LCM") inventory adjustment of $11.1 million and special charges of approximately $10 million related to enterprise resource planning ("ERP") system implementation expenses, M&A transaction expenses and realized hedging losses.
Management Commentary
"I am pleased to report today that Calumet has delivered another solid quarter of results and a fourth consecutive quarter of improved overall performance," said Tim Go, Chief Executive Officer of Calumet. "I also want to express my disappointment over the delays required in filing our quarterly financial results and apologize to our stakeholders, all of whom have been patient with us as we implemented our new ERP system. Heading into the fourth quarter and beyond, we expect to file our quarterly results without delays. The Partnership has seen significant year-over-year improvements in our financial performance, driven by improved market conditions and our internal self-help initiatives. Our results are a testament to the hard work of our employees as we continue to execute against our long-term strategic goals.
Despite significant supply chain disruptions in the Gulf Coast region due to Hurricane Harvey and the implementation of our new ERP system, our core specialty products segment Adjusted EBITDA contribution of $43.0 million is flat to the prior year period. While the first two months of the quarter marked healthy growth for our core business, the month of September was adversely affected by these disruptions, which caused us to delay and backlog some shipments in our highest margin specialties and branded products divisions out of the third quarter. The ability to deliver these results despite the negative impact of these events is indicative of the strength of our underlying business and reflects the improvements we have put in place over the course of the last year. We see continued strength in our core specialty markets, and shipping has returned to normal levels through the final quarter of the year."
Go continued, "Our strong fuel products segment Adjusted EBITDA performance of $46.3 million showed marked improvement to both year-over-year and sequential comparisons, and represented the highest segment performance in the last nine quarters. Our refineries operated efficiently with higher than average production through the quarter, especially through the period of time affected by Hurricane Harvey. As a result, we were able to supply areas of Texas and Louisiana with fuel products during a period when many other suppliers were shut down. Our Adjusted EBITDA gains were somewhat offset by hedging losses in the quarter as crude continued to move higher. However, during the third quarter we locked in healthy prices for our fuel products, which we expect to provide a benefit to our performance through the seasonally weaker winter timeframe. Additionally, our oilfield services segment saw a second consecutive quarter of profitability as the market continues to display strength in concert with our continuous improvement efforts, helping drive the strongest quarterly performance for the segment since 2014."
Go concluded, "The third quarter saw Calumet make significant strides related to our long-term goals. Over the last four quarters we have made dramatic improvements to our balance sheet leverage, which currently sits at 6.6x Net debt/Adjusted EBITDA compared to 21.8x at this point last year. We continue to remain vigilant in our efforts to maintain cost discipline and drive further operational efficiencies, as evidenced by the $44 million in profit contribution from our self-help program year to date. In November we closed the sale of our Superior, WI refinery, as well as the divestiture of Anchor Drilling Fluids USA, LLC for a total announced consideration of approximately $576 million. We expect that net of final closing cost adjustments and after transaction expenses we will actually realize approximately $600 million from these divestitures. All of these efforts will allow Calumet to deleverage its balance sheet, lower volatility, and ultimately allow the Partnership to focus more meaningful attention and capital on our core specialty business. Our continued improvements combined with strategic divestitures will help support our efforts to drive meaningful long-term value creation for Calumet unitholders."
Specialty Products Segment | Results Summary
|
Three Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Specialty products segment gross profit |
$ |
69.7 |
$ |
81.0 |
|||
|
Specialty products segment Adjusted EBITDA |
$ |
43.0 |
$ |
43.4 |
|||
|
Specialty products segment gross profit per barrel |
$ |
30.81 |
$ |
34.99 |
|||
Specialty products segment gross profit per barrel of $30.81 marks a decrease compared to the prior year period, as the rising crude price environment and Hurricane Harvey's impact on our logistics providers' ability to ship our highest margin branded products negatively impacted gross profit. While continued tightness in industry supply and our self-help initiatives continue to drive meaningful gains for the business, the positive results were offset by the significant disruptions to the supply chain. Specifically, our Porter, TX and Dickinson, TX plants as well as several of our key suppliers to those facilities were negatively impacted. The specialty segment Adjusted EBITDA of $43.0 million was relatively flat to the prior year period, but lower than the record quarterly performance seen in the second quarter of this year. Despite these negative impacts, the segment EBITDA results were commensurate with historical third quarter performance for the business. Segment results benefited from a $6.1 million favorable LCM inventory adjustment.
Fuel Products Segment | Results Summary
|
Three Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Fuel products segment gross profit |
$ |
58.0 |
$ |
22.0 |
|||
|
Fuel products segment Adjusted EBITDA |
$ |
46.3 |
$ |
13.8 |
|||
|
Fuel products segment gross profit per barrel (excluding hedging activities) |
$ |
5.18 |
$ |
1.85 |
|||
Fuel products segment gross profit and Adjusted EBITDA reflected significant improvement relative to the prior year period, driven by strong operations and high utilization through a period of time when the benchmark Gulf Coast 2/1/1 crack spread widened meaningfully in response to the heavy flooding and supply shortages. These market factors contributed to the 164% increase to gross profit and 236% increase to Adjusted EBITDA respectively, relative to the prior year period. Third quarter Adjusted EBITDA of $46.3 million represents the strongest performance from the segment in nine quarters. Fuel products' sales volumes increased approximately 5% year-over-year, due primarily to the increased demand and the business' ability to deliver product into the Louisiana and Texas markets affected by Hurricane Harvey, while many competitors were shutdown. Third quarter Adjusted EBITDA benefited from a $1.2 million favorable LCM inventory adjustment.
Oilfield Services Segment | Results Summary
|
Three Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions) | |||||||
|
Oilfield services segment gross profit |
$ |
23.8 |
$ |
7.3 |
|||
|
Oilfield services segment Adjusted EBITDA |
$ |
6.4 |
$ |
(3.3) |
|||
During the third quarter, the U.S. land-based rig count increased by approximately 97% on a year-over-year basis. Segment level revenue of $70.9 million marked an increase of over 107% relative the prior year period, driven by elevated drilling activity. Higher rig counts and drilling activity in conjunction with the business' continuous improvement efforts helped deliver Adjusted EBITDA of $6.4 million, displaying a marked improvement compared to the $(3.3) million exhibited in the prior year period. This Adjusted EBITDA was the strongest quarterly result for the business since 2014. The segment also benefited from a $3.8 million favorable LCM inventory adjustment.
Partnership Liquidity
As of September 30, 2017, the Partnership had availability under its revolving credit facility of $386.2 million, based on a $486.6 million borrowing base, $100.3 million in outstanding standby letters of credit and $0.1 million in outstanding borrowings. In addition, the Partnership had $26.5 million of cash on hand as of September 30, 2017. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2017 Capital Spending Forecast
Through the third quarter of 2017, total capital spending was $51.7 million. For the full-year 2017, the Partnership has lowered its capital spending forecast and now anticipates that total capital expenditures will be between $85 to $95 million for fiscal year 2017.
Full-Year 2017 RFS Compliance Impact Forecast
In conjunction with the Partnership's ongoing compliance with the RFS, the Partnership records its outstanding Renewable Identification Numbers ("RINs") obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 128 million RINs for the full-year 2017, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency to any of the Partnership's fuel refineries at a later time, and excluding the impact of the Superior refinery divestiture in the fourth quarter. Calumet expects to be able to satisfy a significant portion of its 2017 gross RINs obligation through internal blending and other self-help efforts.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||
|
(In bpd) |
(In bpd) | ||||||||||
|
Total sales volume (1) |
146,228 |
141,457 |
139,011 |
140,066 |
|||||||
|
Total feedstock runs (2) |
137,528 |
132,911 |
135,435 |
134,798 |
|||||||
|
Facility production: (3) |
|||||||||||
|
Specialty products: |
|||||||||||
|
Lubricating oils |
14,220 |
13,847 |
15,095 |
14,470 |
|||||||
|
Solvents |
7,868 |
7,636 |
7,819 |
7,604 |
|||||||
|
Waxes |
1,462 |
1,637 |
1,437 |
1,518 |
|||||||
|
Packaged and synthetic specialty products (4) |
2,121 |
1,972 |
2,495 |
2,068 |
|||||||
|
Other |
2,557 |
1,942 |
1,900 |
1,551 |
|||||||
|
Total |
28,228 |
27,034 |
28,746 |
27,211 |
|||||||
|
Fuel products: |
|||||||||||
|
Gasoline |
38,655 |
35,141 |
37,819 |
37,039 |
|||||||
|
Diesel |
36,335 |
35,166 |
34,723 |
35,190 |
|||||||
|
Jet fuel |
5,381 |
5,423 |
5,812 |
5,139 |
|||||||
|
Asphalt, heavy fuel oils and other |
31,969 |
31,119 |
31,703 |
30,768 |
|||||||
|
Total |
112,340 |
106,849 |
110,057 |
108,136 |
|||||||
|
Total facility production (3) |
140,568 |
133,883 |
138,803 |
135,347 |
|||||||
|
(1) |
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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. |
|
(2) |
Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
|
(3) |
Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
|
(4) |
Packaged and synthetic specialty products include production at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and nine months ended September 30, 2017 and 2016:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In millions) |
(In millions) | ||||||||||||||
|
Derivative gain reflected in sales |
$ |
— |
$ |
14.5 |
$ |
— |
$ |
45.6 |
|||||||
|
Derivative loss reflected in cost of sales |
— |
(9.7) |
— |
(36.4) |
|||||||||||
|
Derivative gain reflected in gross profit |
$ |
— |
$ |
4.8 |
$ |
— |
$ |
9.2 |
|||||||
|
Realized loss on derivative instruments |
$ |
(2.3) |
$ |
(1.8) |
$ |
(7.2) |
$ |
(20.1) |
|||||||
|
Unrealized gain (loss) on derivative instruments |
(9.7) |
(4.9) |
2.2 |
23.5 |
|||||||||||
|
Total derivative gain (loss) reflected in the unaudited |
$ |
(12.0) |
$ |
(1.9) |
$ |
(5.0) |
$ |
12.6 |
|||||||
|
Total loss on commodity derivative settlements |
$ |
(2.3) |
$ |
(1.8) |
$ |
(7.2) |
$ |
(20.1) |
|||||||
Additional Information
Investors, analysts and members of the media interested in additional information may access third quarter results presentation slides on the Partnership's website at http://www.calumetspecialty.com.
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. Calumet is based in Indianapolis, Indiana, and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, (iv) expected benefits to the Partnership from the distribution suspension and (v) estimated capital expenditures as a result of required audits or required operational changes or other environmental and regulatory liabilities. 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 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 acquisitions. 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 hydrocarbon products, fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products and fuel products 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; 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 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; our ability to access the debt and equity markets; 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash used in operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash used in operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA and Distributable Cash Flow 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense (including debt issuance and extinguishment costs), (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
The definition of Adjusted EBITDA presented in this release is consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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 2016 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net loss, operating income (loss), net cash used in operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash used in operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
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, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Sales |
$ |
1,097.4 |
$ |
966.6 |
$ |
3,065.7 |
$ |
2,652.5 |
|||||||
|
Cost of sales |
945.9 |
856.3 |
2,614.3 |
2,324.7 |
|||||||||||
|
Gross profit |
151.5 |
110.3 |
451.4 |
327.8 |
|||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
28.0 |
26.2 |
83.7 |
82.9 |
|||||||||||
|
General and administrative |
41.6 |
28.2 |
107.0 |
80.6 |
|||||||||||
|
Transportation |
36.1 |
42.2 |
117.8 |
126.4 |
|||||||||||
|
Taxes other than income taxes |
7.0 |
4.8 |
17.4 |
14.7 |
|||||||||||
|
Asset impairment |
— |
— |
0.4 |
33.4 |
|||||||||||
|
Other expense (income) |
3.8 |
(1.0) |
6.8 |
1.3 |
|||||||||||
|
Operating income (loss) |
35.0 |
9.9 |
118.3 |
(11.5) |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(47.4) |
(44.6) |
(135.8) |
(117.7) |
|||||||||||
|
Gain (loss) on derivative instruments |
(12.0) |
(6.7) |
(5.0) |
3.4 |
|||||||||||
|
Loss from unconsolidated affiliates |
(0.2) |
(0.3) |
(0.4) |
(18.5) |
|||||||||||
|
Loss on sale of unconsolidated affiliates |
— |
— |
— |
(113.4) |
|||||||||||
|
Other |
0.9 |
0.7 |
1.6 |
1.6 |
|||||||||||
|
Total other expense |
(58.7) |
(50.9) |
(139.6) |
(244.6) |
|||||||||||
|
Net loss before income taxes |
(23.7) |
(41.0) |
(21.3) |
(256.1) |
|||||||||||
|
Income tax benefit |
(0.1) |
(7.6) |
(1.1) |
(7.1) |
|||||||||||
|
Net loss |
$ |
(23.6) |
$ |
(33.4) |
$ |
(20.2) |
$ |
(249.0) |
|||||||
|
Allocation of net loss: |
|||||||||||||||
|
Net loss |
$ |
(23.6) |
$ |
(33.4) |
$ |
(20.2) |
$ |
(249.0) |
|||||||
|
Less: |
|||||||||||||||
|
General partner's interest in net loss |
(0.5) |
(0.7) |
(0.4) |
(5.0) |
|||||||||||
|
Net loss available to limited partners |
$ |
(23.1) |
$ |
(32.7) |
$ |
(19.8) |
$ |
(244.0) |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic and Diluted |
77,632,784 |
77,331,347 |
77,537,531 |
76,767,975 |
|||||||||||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.30) |
$ |
(0.42) |
$ |
(0.25) |
$ |
(3.18) |
|||||||
|
Cash distributions declared per limited partner unit |
$ |
— |
$ |
— |
$ |
— |
$ |
0.685 |
|||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
(In millions) | |||||||
|
September 30, 2017 |
December 31, 2016 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
26.5 |
$ |
4.2 |
|||
|
Accounts receivable, net |
341.7 |
238.7 |
|||||
|
Inventories |
324.4 |
386.2 |
|||||
|
Derivative assets |
0.3 |
0.8 |
|||||
|
Prepaid expenses and other current assets |
15.8 |
11.0 |
|||||
|
Current assets held for sale |
125.0 |
— |
|||||
|
Total current assets |
833.7 |
640.9 |
|||||
|
Property, plant and equipment, net |
1,410.4 |
1,678.0 |
|||||
|
Investment in unconsolidated affiliates |
9.9 |
10.3 |
|||||
|
Goodwill |
172.0 |
177.2 |
|||||
|
Other intangible assets, net |
153.9 |
178.5 |
|||||
|
Other noncurrent assets, net |
18.4 |
40.3 |
|||||
|
Noncurrent assets held for sale |
215.1 |
— |
|||||
|
Total assets |
$ |
2,813.4 |
$ |
2,725.2 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
261.3 |
$ |
295.5 |
|||
|
Accrued interest payable |
55.4 |
52.5 |
|||||
|
Accrued salaries, wages and benefits |
32.3 |
11.5 |
|||||
|
Other taxes payable |
24.1 |
20.8 |
|||||
|
Obligations under inventory financing agreements |
92.8 |
— |
|||||
|
Other current liabilities |
59.7 |
99.6 |
|||||
|
Current portion of long-term debt |
4.3 |
3.5 |
|||||
|
Derivative liabilities |
8.3 |
14.8 |
|||||
|
Current liabilities held for sale |
74.5 |
— |
|||||
|
Total current liabilities |
612.7 |
498.2 |
|||||
|
Noncurrent deferred income taxes |
1.0 |
2.3 |
|||||
|
Pension and postretirement benefit obligations |
3.6 |
11.3 |
|||||
|
Other long-term liabilities |
0.8 |
1.0 |
|||||
|
Long-term debt, less current portion |
1,986.6 |
1,993.7 |
|||||
|
Noncurrent liabilities held for sale |
7.1 |
— |
|||||
|
Total liabilities |
2,611.8 |
2,506.5 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
209.8 |
227.0 |
|||||
|
Accumulated other comprehensive loss |
(8.2) |
(8.3) |
|||||
|
Total partners' capital |
201.6 |
218.7 |
|||||
|
Total liabilities and partners' capital |
$ |
2,813.4 |
$ |
2,725.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
|
Nine Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
(In millions) | |||||||
|
Operating activities |
|||||||
|
Net loss |
$ |
(20.2) |
$ |
(249.0) |
|||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
|
Depreciation and amortization |
130.6 |
127.1 |
|||||
|
Amortization of turnaround costs |
20.4 |
25.3 |
|||||
|
Non-cash interest expense |
7.6 |
7.2 |
|||||
|
Provision for doubtful accounts |
0.2 |
0.4 |
|||||
|
Unrealized gain on derivative instruments |
(2.2) |
(23.5) |
|||||
|
Asset impairment |
0.4 |
33.4 |
|||||
|
(Gain) loss on disposal of fixed assets |
3.9 |
(0.5) |
|||||
|
Non-cash equity based compensation |
8.4 |
3.9 |
|||||
|
Deferred income tax benefit |
(0.2) |
(0.4) |
|||||
|
Lower of cost or market inventory adjustment |
(19.1) |
(33.3) |
|||||
|
Loss from unconsolidated affiliates |
0.4 |
18.5 |
|||||
|
Loss on sale of unconsolidated affiliates |
— |
113.4 |
|||||
|
Other non-cash activities |
5.0 |
3.7 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(155.1) |
(69.8) |
|||||
|
Inventories |
8.0 |
16.3 |
|||||
|
Prepaid expenses and other current assets |
(4.8) |
(6.6) |
|||||
|
Derivative activity |
(0.3) |
(18.1) |
|||||
|
Turnaround costs |
(11.3) |
(8.7) |
|||||
|
Other assets |
(0.4) |
(0.3) |
|||||
|
Accounts payable |
37.7 |
11.6 |
|||||
|
Accrued interest payable |
2.9 |
24.1 |
|||||
|
Accrued salaries, wages and benefits |
17.6 |
(17.0) |
|||||
|
Other taxes payable |
7.4 |
5.4 |
|||||
|
Other liabilities |
(39.7) |
19.9 |
|||||
|
Pension and postretirement benefit obligations |
(0.5) |
(1.8) |
|||||
|
Net cash used in operating activities |
(3.3) |
(18.8) |
|||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(45.6) |
(117.3) |
|||||
|
Investment in unconsolidated affiliates |
— |
(41.0) |
|||||
|
Proceeds from sale of unconsolidated affiliates |
— |
29.0 |
|||||
|
Proceeds from sale of property, plant and equipment |
— |
1.9 |
|||||
|
Net cash used in investing activities |
(45.6) |
(127.4) |
|||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
781.2 |
823.2 |
|||||
|
Repayments of borrowings — revolving credit facility |
(791.3) |
(934.1) |
|||||
|
Proceeds from borrowings — senior notes |
— |
393.1 |
|||||
|
Repayments of borrowings — related party note |
— |
(55.4) |
|||||
|
Payments on capital lease obligations |
(6.7) |
(6.2) |
|||||
|
Proceeds from inventory financing agreements |
91.6 |
— |
|||||
|
Other financing activities |
(1.1) |
6.9 |
|||||
|
Debt issuance costs |
(2.2) |
(10.1) |
|||||
|
Contributions from Calumet GP, LLC |
0.1 |
0.2 |
|||||
|
Taxes paid for phantom unit grants |
(0.4) |
(1.8) |
|||||
|
Distributions to partners |
— |
(57.4) |
|||||
|
Net cash provided by financing activities |
71.2 |
158.4 |
|||||
|
Net increase in cash and cash equivalents |
22.3 |
12.2 |
|||||
|
Cash and cash equivalents at beginning of period |
4.2 |
5.6 |
|||||
|
Cash and cash equivalents at end of period |
$ |
26.5 |
$ |
17.8 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||
|
(In millions) | |||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Reconciliation of Net loss to EBITDA, Adjusted |
(Unaudited) | ||||||||||||||
|
Net loss |
$ |
(23.6) |
$ |
(33.4) |
$ |
(20.2) |
$ |
(249.0) |
|||||||
|
Add: |
|||||||||||||||
|
Interest expense |
47.4 |
44.6 |
135.8 |
117.7 |
|||||||||||
|
Depreciation and amortization |
48.6 |
44.5 |
130.6 |
127.1 |
|||||||||||
|
Income tax benefit |
(0.1) |
(7.6) |
(1.1) |
(7.1) |
|||||||||||
|
EBITDA |
$ |
72.3 |
$ |
48.1 |
$ |
245.1 |
$ |
(11.3) |
|||||||
|
Add: |
|||||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
9.7 |
$ |
4.9 |
$ |
(2.2) |
$ |
(23.5) |
|||||||
|
Realized loss on derivatives, not included in net |
— |
(4.8) |
— |
(9.2) |
|||||||||||
|
Amortization of turnaround costs |
6.4 |
7.9 |
20.4 |
25.3 |
|||||||||||
|
Impairment charges |
— |
— |
0.4 |
33.4 |
|||||||||||
|
Loss on sale of unconsolidated affiliate |
— |
— |
— |
113.9 |
|||||||||||
|
Non-cash equity based compensation and other |
7.3 |
(2.2) |
12.3 |
1.9 |
|||||||||||
|
Adjusted EBITDA |
$ |
95.7 |
$ |
53.9 |
$ |
276.0 |
$ |
130.5 |
|||||||
|
Less: |
|||||||||||||||
|
Replacement and environmental capital |
10.2 |
8.8 |
21.1 |
19.9 |
|||||||||||
|
Cash interest expense (2) |
44.6 |
42.0 |
128.2 |
110.5 |
|||||||||||
|
Turnaround costs |
1.0 |
0.6 |
11.3 |
8.7 |
|||||||||||
|
Loss from unconsolidated affiliates |
(0.2) |
(0.3) |
(0.4) |
(18.5) |
|||||||||||
|
Income tax benefit |
(0.1) |
(7.6) |
(1.1) |
(7.1) |
|||||||||||
|
Distributable Cash Flow |
$ |
40.2 |
$ |
10.4 |
$ |
116.9 |
$ |
17.0 |
|||||||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH USED IN | |||||||
|
(In millions) | |||||||
|
Nine Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash |
(Unaudited) | ||||||
|
Distributable Cash Flow |
$ |
116.9 |
$ |
17.0 |
|||
|
Add: |
|||||||
|
Replacement and environmental capital expenditures (1) |
21.1 |
19.9 |
|||||
|
Cash interest expense (2) |
128.2 |
110.5 |
|||||
|
Turnaround costs |
11.3 |
8.7 |
|||||
|
Loss from unconsolidated affiliates |
(0.4) |
(18.5) |
|||||
|
Income tax benefit |
(1.1) |
(7.1) |
|||||
|
Adjusted EBITDA |
$ |
276.0 |
$ |
130.5 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(2.2) |
$ |
(23.5) |
|||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
— |
(9.2) |
|||||
|
Amortization of turnaround costs |
20.4 |
25.3 |
|||||
|
Impairment charges |
0.4 |
33.4 |
|||||
|
Loss on sale of unconsolidated affiliate |
— |
113.9 |
|||||
|
Non-cash equity based compensation and other non-cash items |
12.3 |
1.9 |
|||||
|
EBITDA |
$ |
245.1 |
$ |
(11.3) |
|||
|
Add: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(2.2) |
$ |
(23.5) |
|||
|
Cash interest expense (2) |
(128.2) |
(110.5) |
|||||
|
Asset impairment |
0.4 |
33.4 |
|||||
|
Non-cash equity based compensation |
8.4 |
3.9 |
|||||
|
Lower of cost or market inventory adjustment |
(19.1) |
(33.3) |
|||||
|
Deferred income tax benefit |
(0.2) |
(0.4) |
|||||
|
Loss from unconsolidated affiliates |
0.4 |
18.5 |
|||||
|
Loss on sale of unconsolidated affiliates |
— |
113.4 |
|||||
|
Amortization of turnaround costs |
20.4 |
25.3 |
|||||
|
Income tax benefit |
1.1 |
7.1 |
|||||
|
Provision for doubtful accounts |
0.2 |
0.4 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(155.1) |
(69.8) |
|||||
|
Inventories |
8.0 |
16.3 |
|||||
|
Other current assets |
(4.8) |
(6.6) |
|||||
|
Derivative activity |
(0.3) |
(18.1) |
|||||
|
Turnaround costs |
(11.3) |
(8.7) |
|||||
|
Other assets |
(0.4) |
(0.3) |
|||||
|
Accounts payable |
37.7 |
11.6 |
|||||
|
Accrued interest payable |
2.9 |
24.1 |
|||||
|
Other current liabilities |
(14.7) |
8.3 |
|||||
|
Other, including changes in noncurrent liabilities |
8.4 |
1.4 |
|||||
|
Net cash used in operating activities |
$ |
(3.3) |
$ |
(18.8) |
|||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | |||||||
|
(In millions) | |||||||
|
Three Months Ended September 30, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Segment Adjusted EBITDA to Net loss: |
(Unaudited) | ||||||
|
Segment Adjusted EBITDA |
|||||||
|
Specialty products Adjusted EBITDA |
$ |
43.0 |
$ |
43.4 |
|||
|
Fuel products Adjusted EBITDA |
46.3 |
13.8 |
|||||
|
Oilfield services Adjusted EBITDA |
6.4 |
(3.3) |
|||||
|
Total segment Adjusted EBITDA |
$ |
95.7 |
$ |
53.9 |
|||
|
Less: |
|||||||
|
Unrealized loss on derivative instruments |
$ |
9.7 |
$ |
4.9 |
|||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
— |
(4.8) |
|||||
|
Amortization of turnaround costs |
6.4 |
7.9 |
|||||
|
Non-cash equity based compensation and other non-cash items |
7.3 |
(2.2) |
|||||
|
EBITDA |
$ |
72.3 |
$ |
48.1 |
|||
|
Less: |
|||||||
|
Interest expense |
$ |
47.4 |
$ |
44.6 |
|||
|
Depreciation and amortization |
48.6 |
44.5 |
|||||
|
Income tax benefit |
(0.1) |
(7.6) |
|||||
|
Net loss |
$ |
(23.6) |
$ |
(33.4) |
|||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-third-quarter-2017-results-300575668.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
12/28/201712/22/2017 - Calumet Specialty Products Partners, L.P. To Release Third Quarter 2017 Results on or About December 28th
Calumet Specialty Products Partners, L.P. To Release Third Quarter 2017 Results on or About December 28th
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Dec. 22, 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 fuel products, today announced that it will report results for the third quarter 2017 on or about December 28, 2017. The accompanying earnings results slides will be available on the Partnership's website at http://www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and operates eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-third-quarter-2017-results-on-or-about-december-28th-300574985.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
12/22/201711/21/2017 - Calumet Specialty Products Partners, L.P. Announces Strategic Divestiture of Anchor Drilling Fluids USA, LLC
Calumet Specialty Products Partners, L.P. Announces Strategic Divestiture of Anchor Drilling Fluids USA, LLC
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Nov. 21, 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 closed on the sale of Anchor Drilling Fluids USA, LLC ("Anchor Drilling Fluids") to Q'Max America Inc., a wholly owned subsidiary of Q'Max Solutions Inc. ("Q'Max"). Under the agreement, Calumet will receive total consideration of approximately $84 million, including $50 million in cash, $15 million to be paid at various times over the next two years for net working capital and other items, and 10% equity ownership in Fluid Holding Corp, the parent company of Q'Max. Calumet plans to use the proceeds to lower its leverage profile and for general partnership purposes.
Tim Go, Chief Executive Officer of Calumet, commented, "Calumet's divestiture of Anchor Drilling Fluids is another step forward in our plans to strengthen our balance sheet and focus our resources on our core specialty products business. The merger of Q'Max and Anchor Drilling Fluids will create the largest independent drilling fluids company in the United States. Anchor has been on a steady improvement trajectory with positive EBITDA contribution this year. We expect the value of our minority stake in Q'Max to continue to track the oilfield services recovery, as well as benefit from the operational and supply chain synergies created through the new entity's increased scale and scope."
Go concluded, "I want to thank our Anchor employees for their hard work and dedication over the past three years and am pleased to report that the new entity will transact under the long-recognized Anchor brand in its U.S. operations. We look forward to sharing in the future success of Q'Max as an investor, while we pursue our own vision to be the premier specialty petroleum products company in the world."
Raymond James is serving as the exclusive financial advisor to Calumet on this transaction and Taft Stettinius & Hollister LLP acted as legal advisor.
About Anchor Drilling Fluids
Anchor Drilling Fluids is the leading provider of drilling fluid products in the U.S. This includes a wide range of drilling muds, completion fluids, production fluids, and environmental chemicals all developed to the most stringent standards and Anchor Drilling Fluids' decades of expertise. Headquartered in Tulsa, Oklahoma Anchor Drilling Fluids owns and operates more than 30 facilities throughout the U.S. and is dedicated to delivering mission-critical resources and expertise to decrease drilling and completion time and maximize well economics.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 eleven manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, and eastern Missouri.
About Q'Max Solutions, Inc.
Founded in 1993, Q'Max is a leading international oilfield services company that provides onshore and offshore drilling fluids, solids control, waste management and environmental solutions to the upstream oil & gas industry.
Q'Max is a global business with operations in the U.S., Canada, Mexico, South America, the Middle East and Africa with its Headquarters in Houston, TX, USA. Q'Max operates 11 drilling fluids laboratories around the world with a state-of-the-art Corporate Technical Center in Houston.
Since its acquisition by affiliates of Palladium Equity Partners, LLC in May 2014, Q'Max has significantly diversified the business and expanded market share through follow-on M&A and aggressive organic growth initiatives
Q'Max is the fifth largest drilling fluids company in the world, and holds as its mission to become the preeminent drilling fluids company.
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 Renewable Fuel Standard, including the prices paid for Renewable Identification Numbers; 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-strategic-divestiture-of-anchor-drilling-fluids-usa-llc-300560439.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/21/201711/15/2017 - Calumet Specialty Products Partners, L.P. Announces Receipt of Nasdaq Non-Compliance Letter
Calumet Specialty Products Partners, L.P. Announces Receipt of Nasdaq Non-Compliance Letter
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Nov. 15, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), announced today that on November 13, 2017, it received a Delinquency Compliance Plan Alert Letter (the "Letter") from Nasdaq ("Nasdaq") stating that the Partnership was not in compliance with Nasdaq Listing Rule 5250(c)(1), because it has not timely filed its Quarterly Report on Form 10-Q ("Form 10-Q") for the quarterly period ended September 30, 2017.
Calumet is currently in the later stages of an enterprise resource planning system implementation, the results of which have delayed the Partnership's quarterly Form 10-Q filing.
In the Letter, Nasdaq indicated that the Partnership has 60 calendar days to submit a plan to regain compliance. If such a plan is timely submitted by the Partnership, the Nasdaq staff may grant the Partnership up to 180 calendar days from the due date of the Form 10-Q, or until May 8, 2018, to regain compliance. The Partnership does not currently expect that the submission of a compliance plan will be necessary because the Partnership anticipates that it will file the Form 10-Q prior to the expiration of the 60-day period. The Partnership expects that it will fully regain compliance with the Nasdaq continued listing requirements upon the filing of the Form 10-Q. As previously stated, the Company will file the Form 10-Q as soon as reasonably practicable.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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 twelve manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-receipt-of-nasdaq-non-compliance-letter-300557179.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/15/201711/10/2017 - Calumet Specialty Products Partners, L.P. To Delay Reporting on Third Quarter Financial Results
Calumet Specialty Products Partners, L.P. To Delay Reporting on Third Quarter Financial Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Nov. 10, 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 select preliminary financial results and that it will file a notification of late filing with the Securities and Exchange Commission ("SEC") with respect to the filing of its quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2017.
Calumet is currently in the later stages of an enterprise resource planning ("ERP") system implementation, the results of which have delayed the Partnership's quarterly Form 10-Q filing. In the interim, the Partnership provided the following preliminary results for the third quarter:
|
3Q17 Estimate |
2Q17 |
3Q16 | |||||||
|
(Dollars in millions) | |||||||||
|
Sales |
Above $1,000 |
$ |
1,030.9 |
$ |
966.6 |
||||
|
Liquidity (Revolver Availability + Cash) |
Above $400 |
$ |
369 |
$ |
388 |
||||
Tim Go, Chief Executive Officer of Calumet, commented, "After the launch of our new ERP system on September 1st, we encountered challenges that affected our financial reporting capabilities. As a result, along with the recent closing of our Superior, Wisconsin Refinery divestiture, we are taking additional time to accurately complete our financial statements and permit our external auditor to complete its review procedures. While we are disappointed to be experiencing this reporting delay, we are working diligently to provide our third quarter financial results as quickly as possible. We are also working closely with our implementation partner to capture the system's full benefits and enable us to capitalize on new categories of self-help, including opportunities to improve sales, product mix and optimize transportation and procurement. In the meantime, we are providing low end estimates for both our sales and liquidity positions that show our business performance continues to improve and highlight strong operations, supported by positive market conditions across all three segments. This is expected to include year-over-year performance improvement in our specialty products segment driven by continued tight supply and self-help initiatives, strong operational performance from our fuel plants after Hurricane Harvey, and the strongest financial performance in our oilfield services segment in 11 quarters, partially offset by rising feedstock costs and temporary disruptions in the supply chain as a result of Hurricane Harvey and the implementation of our ERP system."
The Partnership is currently finalizing its financial results for the quarter ended September 30, 2017. The preliminary financial results provided are not a comprehensive statement of the Company's financial results for this period and reflect the Company's estimates based solely upon information available to it as of the date hereof. The Partnership's actual results are subject to its financial closing procedures, and may differ materially from these estimates following the completion of such procedures. Our independent registered public accounting firm has not reviewed or performed any procedures with respect to the accompanying preliminary financial data. As a result, the Partnership's actual financial results could be different from this preliminary financial data, and any differences could be material. These estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with U.S. GAAP.
A subsequent press release will be issued to inform investors and interested parties of the formal announcement of third quarter financial statements.
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on Friday November 10, 2017 to discuss the Partnership's preliminary third quarter results, as well as the impact of the Superior Refinery divestiture on the Partnership's historical financials. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 4185769. 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 section.
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 twelve manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, and (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow and (iii) our ability to successfully implement our ERP system. 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 materially from our historical experience and our present expectations or projections. Such factors include a material delay in the Company's financial reporting or the identification of a control deficiency which represents a material weakness in the Company's internal control over financial reporting. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include: the timing, cost and effectiveness of the implementation of our ERP system, the overall demand for specialty hydrocarbon products, fuels, other refined products and oilfield services; 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; 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; 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-delay-reporting-on-third-quarter-financial-results-300553692.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/10/201711/8/2017 - Calumet Specialty Products Partners, L.P. Announces Completion of Divestiture of Superior Refinery
Calumet Specialty Products Partners, L.P. Announces Completion of Divestiture of Superior Refinery
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Nov. 8, 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 at it has completed the sale of its Superior, Wisconsin Refinery ("Superior Refinery") and various related assets for a total consideration of $492 million. The total consideration included the sale price of $435 million, and an additional $57 million for net working capital, inventories, and reimbursement of certain capital spending. The cash consideration is subject to certain purchase price adjustments relating to, among other things, final net working capital adjustments.
The benefits of the transaction:
The Company will discuss its pro-forma financials excluding the historical impact of the Superior Refinery during its scheduled third quarter earnings call at 9:00 AM ET on November 10, 2017.
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 twelve manufacturing facilities located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures and (iv) expected benefits to the Partnership from the distribution suspension. 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 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 acquisitions. 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, fuels, other refined products and oilfield services; 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; 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 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; our ability to access the debt and equity markets; 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-completion-of-divestiture-of-superior-refinery-300552232.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/8/201710/25/2017 - Calumet Specialty Products Partners, L.P. To Release Third Quarter 2017 Results on November 10th
Calumet Specialty Products Partners, L.P. To Release Third Quarter 2017 Results on November 10th
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
INDIANAPOLIS, Oct. 25, 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 fuel products, today announced that it will report results for the third quarter 2017 on Friday, November 10, 2017. A conference call is scheduled for 9:00 AM ET on November 10, 2017 to discuss the financial and operational results for the third quarter.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 4185769. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-third-quarter-2017-results-on-november-10th-300543487.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
10/25/2017Calumet Specialty Products Partners, L.P. To Attend Upcoming Deutsche Bank 25th Annual Leveraged Finance Conference
Source: PR Newswire
INDIANAPOLIS, Oct. 2, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the Deutsche Bank 25th Annual Leveraged Finance Conference in Scottsdale, AZ on Tuesday October 3, 2017.
Management will provide an overview of the Company's business during a live presentation and will be available to participate in one-on-one meetings with investors who are registered to attend the conference. The presentation will be webcast live at 4:35pm EDT and can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-upcoming-deutsche-bank-25th-annual-leveraged-finance-conference-300529000.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
10/2/20178/14/2017 - Calumet Specialty Products Partners, L.P. Announces Agreement to Sell Superior Refinery and Related Assets
Calumet Specialty Products Partners, L.P. Announces Agreement to Sell Superior Refinery and Related Assets
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
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:
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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-announces-agreement-to-sell-superior-refinery-and-related-assets-300503669.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/14/2017Calumet Specialty Products Partners, L.P. To Attend Upcoming Goldman Sachs Power, Utilities, MLPs, and Pipelines Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Aug. 7, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the 2017 Goldman Sachs Power, Utilities, MLPs, and Pipelines Conference in New York City on Thursday, August 10, 2017.
Management will provide an overview of the Company's business in one-on-one meetings with investors who are registered to attend the conference. The presentation slides will be available during the conference and can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-attend-upcoming-goldman-sachs-power-utilities-mlps-and-pipelines-conference-300500515.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/7/2017Calumet Specialty Products Partners, L.P. Reports Second Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Aug. 4, 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 reported results for the second quarter ended June 30, 2017, as follows:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(Dollars in millions, except per unit data) | |||||||||||||||
|
Net income (loss) |
$ |
9.6 |
$ |
(147.9) |
$ |
3.4 |
$ |
(215.6) |
|||||||
|
Limited partners' interest basic and diluted net income |
$ |
0.12 |
$ |
(1.89) |
$ |
0.04 |
$ |
(2.76) |
|||||||
|
Adjusted EBITDA |
$ |
101.6 |
$ |
70.0 |
$ |
180.3 |
$ |
76.6 |
|||||||
The Partnership's $9.6 million net income and Adjusted EBITDA of $101.6 million for the second quarter 2017 included, but is not limited to, the impact of a favorable lower of cost or market ("LCM") inventory adjustment of $4.0 million.
For detailed information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"Our strong second quarter performance reflects hard work and successful execution against our strategic goals as we continue to improve upon our operating efficiencies and self-help initiatives," said Tim Go, Chief Executive Officer of Calumet. "Through the first half of 2017, we have seen significant year-over-year improvements in margin and Adjusted EBITDA contribution from all of our business segments. Our core specialty products segment delivered another strong quarter of margin growth and Adjusted EBITDA. Our oilfield services segment returned to profitability for the first time since 2014, and our fuels segment had increased year-over-year margins despite a turnaround at the Superior refinery during the second quarter. The Partnership's performance this quarter resulted in net income of $9.6 million and Adjusted EBITDA of $101.6 million, an improvement of 45% year-over-year. We remain focused on our efforts to increase operating efficiencies, grow our sales volumes and deliver new and innovating products to the marketplace, all of which will support our efforts to drive even greater value over the long-term for Calumet's unitholders."
Go continued, "This quarter also marked the launch of three new product lines: CALPAR™ 4GIII, CALTRAN™ 60-00 Group U, and our No-Tox® Ultra F Oil from Bel-Ray®. We are seeing strong market interest for these new products and have started to ramp up production and our sales and marketing platforms for each. All three of these products were developed by our in-house R&D group and are a true testament to the bright and innovative members of the Calumet team."
Go concluded, "I'm extremely proud of all of our employees for their contributions to our strong performance this quarter. We are particularly encouraged by the growth in our specialty products and oilfield services segments, as well as the continued contribution from our self-help initiatives. Our improvements in the second quarter will act as a stepping stone upon which we will continue to create value for our customers and unitholders as we transition into the second half of 2017."
Specialty Products Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Specialty products segment gross profit |
$ |
103.0 |
$ |
98.5 |
|||
|
Specialty products segment Adjusted EBITDA |
$ |
67.1 |
$ |
59.0 |
|||
|
Specialty products segment gross profit per barrel |
$ |
41.87 |
$ |
35.69 |
|||
Specialty products' gross profit per barrel increased sequentially to $41.87 this period from $31.85 in the first quarter of 2017, and compared to $35.69 in the second quarter of 2016, due to stronger margins from self-help initiatives and tighter industry supply. Specialty products Adjusted EBITDA of $67.1 million for the second quarter 2017, increased by 47.1% sequentially from $45.6 million in the first quarter of 2017, and by 13.7% year-over-year compared to $59.0 million in the second quarter of 2016. Adjusted EBITDA of $67.1 million was the highest the segment has produced in four years and was partially offset by lower sales volume and an unfavorable LCM inventory adjustment of $0.4 million.
Fuel Products Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Fuel products segment gross profit |
$ |
40.7 |
$ |
32.0 |
|||
|
Fuel products segment Adjusted EBITDA |
$ |
34.0 |
$ |
18.9 |
|||
|
Fuel products segment gross profit per barrel (including hedging activities) |
$ |
3.92 |
$ |
2.84 |
|||
|
Fuel products segment gross profit per barrel (excluding hedging activities) |
$ |
3.92 |
$ |
2.59 |
|||
Fuel products' gross profit and Adjusted EBITDA demonstrated marked improvement during the second quarter of 2017, as compared to the year-ago period, driven by a year-over-year increase in benchmark refined product margins and decreased Renewable Fuel Standard ("RFS") compliance costs. Specifically, the year-over-year performance improvements were driven in part by the 17% improvement in the benchmark Gulf Coast 2/1/1 crack spread and higher local price differentials versus the Gulf Coast realized on fuel products sold in our discrete market areas, despite lower sales volumes. During the second quarter 2017, total fuel products segment sales volumes decreased by nearly 8% compared to year-ago levels, which was primarily the result of the turnaround at the Superior refinery. Second quarter Adjusted EBITDA benefited from a $4.2 million favorable LCM inventory adjustment.
Oilfield Services Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions) | |||||||
|
Oilfield services segment gross profit |
$ |
16.7 |
$ |
0.8 |
|||
|
Oilfield services segment Adjusted EBITDA |
$ |
0.5 |
$ |
(7.9) |
|||
During the second quarter, the U.S. land-based rig count increased by approximately 112% on a year-over-year basis. Elevated drilling activity drove revenues of $63.9 million, a threefold increase compared to $21.3 million in the prior year period. Gross profit increased to $16.7 million during the second quarter compared to $0.8 million in the second quarter of 2016. Adjusted EBITDA for the second quarter was $0.5 million, an increase of $8.4 million relative to the prior year period. The segment also benefited from a $0.2 million favorable LCM inventory adjustment.
Partnership Liquidity
As of June 30, 2017, the Partnership had availability under its revolving credit facility of $342.1 million, based on a $439.6 million borrowing base, $97.1 million in outstanding standby letters of credit and $0.4 million in outstanding borrowings. In addition, the Partnership had $26.6 million of cash on hand as of June 30, 2017. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2017 Capital Spending Forecast
Through the second quarter of 2017, total capital spending was $32.8 million, down over 54% compared to the same period in 2016. For the full-year 2017, and based on a shift in the timing of the turnaround at one of its plants, the Partnership has updated its capital spending forecast and now anticipates that total capital expenditures will be within the range of $110 to $130 million for fiscal year 2017.
Full-Year 2017 RFS Compliance Impact Forecast
In conjunction with the Partnership's ongoing compliance with the RFS, the Partnership records its outstanding Renewable Identification Numbers ("RINs") obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 128 million RINs for the full-year 2017, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency to any of the Partnership's fuel refineries at a later time. Calumet expects to be able to satisfy a significant portion of its 2017 gross RINs obligation through internal blending and other self-help efforts.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||
|
(In bpd) |
(In bpd) | ||||||||||
|
Total sales volume (1) |
141,154 |
154,286 |
135,343 |
139,363 |
|||||||
|
Total feedstock runs (2) |
136,552 |
143,118 |
134,370 |
135,751 |
|||||||
|
Facility production: (3) |
|||||||||||
|
Specialty products: |
|||||||||||
|
Lubricating oils |
15,914 |
15,716 |
15,539 |
14,785 |
|||||||
|
Solvents |
8,239 |
7,823 |
7,794 |
7,587 |
|||||||
|
Waxes |
1,373 |
1,581 |
1,425 |
1,458 |
|||||||
|
Packaged and synthetic specialty products (4) |
2,648 |
2,110 |
2,684 |
2,117 |
|||||||
|
Other |
1,244 |
1,799 |
1,567 |
1,354 |
|||||||
|
Total |
29,418 |
29,029 |
29,009 |
27,301 |
|||||||
|
Fuel products: |
|||||||||||
|
Gasoline |
37,225 |
37,954 |
37,395 |
37,999 |
|||||||
|
Diesel |
34,787 |
40,057 |
33,904 |
35,202 |
|||||||
|
Jet fuel |
5,306 |
4,314 |
6,030 |
4,995 |
|||||||
|
Asphalt, heavy fuel oils and other |
33,699 |
32,941 |
31,569 |
30,590 |
|||||||
|
Total |
111,017 |
115,266 |
108,898 |
108,786 |
|||||||
|
Total facility production (3) |
140,435 |
144,295 |
137,907 |
136,087 |
|||||||
(1) 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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales.
The decrease in total sales volume for the three and six months ended June 30, 2017, as compared to the same periods in 2016, is due primarily to decreased sales volume of fuel products primarily as a result of turnaround activities at the Superior refinery. In addition, decreased sales volume of lubricating oils and waxes was partially offset by increased sales volume of branded and packaged specialty products as a result of market conditions.
(2) Total feedstock runs represent the barrels per day ("bpd") of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements.
The decrease in total feedstock runs for the three months ended June 30, 2017, as compared to the same period in 2016, is due primarily to decreased feedstock runs at the Superior refinery as a result of turnaround activities completed in the second quarter 2017.
The decrease in total feedstock runs for the six months ended June 30, 2017, as compared to the same period in 2016, is due primarily to decreased feedstock runs at the Superior refinery as a result of turnaround activities completed in the second quarter 2017, partially offset by increased feedstock runs as a result of improved operational reliability.
(3) Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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.
The change in total facility production for the three and six months ended June 30, 2017, as compared to the same periods in 2016, is due primarily to the operational items discussed above in footnote 2.
(4) Packaged and synthetic specialty products include production at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities.
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2017 and 2016:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
(In millions) |
(In millions) | ||||||||||||||
|
Derivative gain reflected in sales |
$ |
— |
$ |
15.1 |
$ |
— |
$ |
31.1 |
|||||||
|
Derivative loss reflected in cost of sales |
— |
(12.8) |
— |
(26.7) |
|||||||||||
|
Derivative gain reflected in gross profit |
$ |
— |
$ |
2.3 |
$ |
— |
$ |
4.4 |
|||||||
|
Realized loss on derivative instruments |
$ |
— |
$ |
(6.0) |
$ |
(4.9) |
$ |
(18.3) |
|||||||
|
Unrealized gain on derivative instruments |
1.3 |
23.8 |
11.9 |
28.4 |
|||||||||||
|
Total derivative gain reflected in the unaudited condensed |
$ |
1.3 |
$ |
20.1 |
$ |
7.0 |
$ |
14.5 |
|||||||
|
Total loss on commodity derivative settlements |
$ |
— |
$ |
(6.0) |
$ |
(4.9) |
$ |
(18.3) |
|||||||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on August 4, 2017, to discuss the financial and operational results for the second quarter of fiscal year 2017. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 55345085. 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 section.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, (iv) expected benefits to the Partnership from the distribution suspension and (v) estimated capital expenditures as a result of required audits or required operational changes or other environmental and regulatory liabilities. 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 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 acquisitions. 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 hydrocarbon products, fuels, other refined products and oilfield services; 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; 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 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; our ability to access the debt and equity markets; 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 Report 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash used in operating activities, our most directly comparable liquidity measure. Both Net income (loss) and Net cash used in operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA and Distributable Cash Flow 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
The definition of Adjusted EBITDA presented in this release is consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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 2016 Annual Report on Form 10-K, Quarterly Report on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net income (loss), operating income (loss), net cash used in operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash used in operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
|
(In millions, except unit and per unit data) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Sales |
$ |
1,030.9 |
$ |
972.9 |
$ |
1,968.3 |
$ |
1,685.9 |
|||||||
|
Cost of sales |
870.5 |
841.6 |
1,668.4 |
1,468.4 |
|||||||||||
|
Gross profit |
160.4 |
131.3 |
299.9 |
217.5 |
|||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
28.2 |
26.2 |
55.7 |
56.7 |
|||||||||||
|
General and administrative |
33.6 |
24.8 |
65.4 |
52.4 |
|||||||||||
|
Transportation |
41.1 |
45.0 |
81.7 |
84.2 |
|||||||||||
|
Taxes other than income taxes |
4.9 |
4.2 |
10.4 |
9.9 |
|||||||||||
|
Asset impairment |
— |
33.4 |
0.4 |
33.4 |
|||||||||||
|
Other |
1.1 |
0.3 |
3.0 |
2.3 |
|||||||||||
|
Operating income (loss) |
51.5 |
(2.6) |
83.3 |
(21.4) |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(44.5) |
(42.8) |
(88.4) |
(73.1) |
|||||||||||
|
Gain on derivative instruments |
1.3 |
17.8 |
7.0 |
10.1 |
|||||||||||
|
Loss from unconsolidated affiliates |
(0.1) |
(7.1) |
(0.2) |
(18.2) |
|||||||||||
|
Loss on sale of unconsolidated affiliates |
— |
(113.4) |
— |
(113.4) |
|||||||||||
|
Other |
0.5 |
0.5 |
0.7 |
0.9 |
|||||||||||
|
Total other expense |
(42.8) |
(145.0) |
(80.9) |
(193.7) |
|||||||||||
|
Net income (loss) before income taxes |
8.7 |
(147.6) |
2.4 |
(215.1) |
|||||||||||
|
Income tax expense (benefit) |
(0.9) |
0.3 |
(1.0) |
0.5 |
|||||||||||
|
Net income (loss) |
$ |
9.6 |
$ |
(147.9) |
$ |
3.4 |
$ |
(215.6) |
|||||||
|
Allocation of net income (loss): |
|||||||||||||||
|
Net income (loss) |
$ |
9.6 |
$ |
(147.9) |
$ |
3.4 |
$ |
(215.6) |
|||||||
|
Less: |
|||||||||||||||
|
General partner's interest in net income |
0.2 |
(2.9) |
0.1 |
(4.3) |
|||||||||||
|
Non-vested share based payments |
$ |
0.2 |
$ |
— |
$ |
0.2 |
$ |
— |
|||||||
|
Net income (loss) available to limited partners |
$ |
9.2 |
$ |
(145.0) |
$ |
3.1 |
$ |
(211.3) |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic |
77,554,815 |
76,761,504 |
77,485,058 |
76,491,775 |
|||||||||||
|
Diluted |
77,714,112 |
76,761,504 |
77,725,656 |
76,491,775 |
|||||||||||
|
Limited partners' interest basic and diluted net income (loss) per unit |
$ |
0.12 |
$ |
(1.89) |
$ |
0.04 |
$ |
(2.76) |
|||||||
|
Cash distributions declared per limited partner unit |
$ |
— |
$ |
— |
$ |
— |
$ |
0.685 |
|||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
(In millions) | |||||||
|
June 30, 2017 |
December 31, 2016 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
26.6 |
$ |
4.2 |
|||
|
Accounts receivable, net |
289.3 |
238.7 |
|||||
|
Inventories |
438.5 |
386.2 |
|||||
|
Derivative assets |
1.0 |
0.8 |
|||||
|
Prepaid expenses and other current assets |
13.9 |
11.0 |
|||||
|
Total current assets |
769.3 |
640.9 |
|||||
|
Property, plant and equipment, net |
1,633.2 |
1,678.0 |
|||||
|
Investment in unconsolidated affiliates |
10.1 |
10.3 |
|||||
|
Goodwill |
177.2 |
177.2 |
|||||
|
Other intangible assets, net |
162.1 |
178.5 |
|||||
|
Other noncurrent assets, net |
36.6 |
40.3 |
|||||
|
Total assets |
$ |
2,788.5 |
$ |
2,725.2 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
312.2 |
$ |
295.5 |
|||
|
Accrued interest payable |
52.4 |
52.5 |
|||||
|
Accrued salaries, wages and benefits |
22.8 |
11.5 |
|||||
|
Other taxes payable |
21.4 |
20.8 |
|||||
|
Obligations under inventory financing agreements |
103.5 |
— |
|||||
|
Other current liabilities |
46.2 |
99.6 |
|||||
|
Current portion of long-term debt |
3.4 |
3.5 |
|||||
|
Derivative liabilities |
2.1 |
14.8 |
|||||
|
Total current liabilities |
564.0 |
498.2 |
|||||
|
Noncurrent deferred income taxes |
2.3 |
2.3 |
|||||
|
Pension and postretirement benefit obligations |
10.9 |
11.3 |
|||||
|
Other long-term liabilities |
0.9 |
1.0 |
|||||
|
Long-term debt, less current portion |
1,986.4 |
1,993.7 |
|||||
|
Total liabilities |
2,564.5 |
2,506.5 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
232.3 |
227.0 |
|||||
|
Accumulated other comprehensive loss |
(8.3) |
(8.3) |
|||||
|
Total partners' capital |
224.0 |
218.7 |
|||||
|
Total liabilities and partners' capital |
$ |
2,788.5 |
$ |
2,725.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
|
Six Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
(In millions) | |||||||
|
Operating activities |
|||||||
|
Net income (loss) |
$ |
3.4 |
$ |
(215.6) |
|||
|
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
|||||||
|
Depreciation and amortization |
82.0 |
82.6 |
|||||
|
Amortization of turnaround costs |
14.0 |
17.4 |
|||||
|
Non-cash interest expense |
4.8 |
4.6 |
|||||
|
Provision for doubtful accounts |
0.1 |
0.5 |
|||||
|
Unrealized gain on derivative instruments |
(11.9) |
(28.4) |
|||||
|
Asset impairment |
0.4 |
33.4 |
|||||
|
(Gain) loss on disposal of fixed assets |
1.5 |
(0.7) |
|||||
|
Non-cash equity based compensation |
3.3 |
2.9 |
|||||
|
Deferred income tax expense (benefit) |
0.1 |
(0.2) |
|||||
|
Lower of cost or market inventory adjustment |
(8.0) |
(44.4) |
|||||
|
Loss from unconsolidated affiliates |
0.2 |
18.2 |
|||||
|
Loss on sale of unconsolidated affiliates |
— |
113.4 |
|||||
|
Other non-cash activities |
3.3 |
2.3 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(50.7) |
(60.0) |
|||||
|
Inventories |
(44.3) |
(10.3) |
|||||
|
Prepaid expenses and other current assets |
(2.1) |
(1.5) |
|||||
|
Derivative activity |
(0.3) |
(10.4) |
|||||
|
Turnaround costs |
(10.3) |
(8.1) |
|||||
|
Other assets |
— |
(0.4) |
|||||
|
Accounts payable |
24.2 |
35.1 |
|||||
|
Accrued interest payable |
(0.1) |
9.1 |
|||||
|
Accrued salaries, wages and benefits |
10.2 |
(16.0) |
|||||
|
Other taxes payable |
0.6 |
3.2 |
|||||
|
Other liabilities |
(55.6) |
22.5 |
|||||
|
Pension and postretirement benefit obligations |
(0.4) |
(0.9) |
|||||
|
Net cash used in operating activities |
(35.6) |
(51.7) |
|||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(30.0) |
(87.9) |
|||||
|
Investment in unconsolidated affiliates |
— |
(41.8) |
|||||
|
Proceeds from sale of unconsolidated affiliates |
— |
29.0 |
|||||
|
Proceeds from sale of property, plant and equipment |
— |
1.9 |
|||||
|
Net cash used in investing activities |
(30.0) |
(98.8) |
|||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
606.9 |
479.0 |
|||||
|
Repayments of borrowings — revolving credit facility |
(616.7) |
(589.9) |
|||||
|
Proceeds from borrowings — senior notes |
— |
393.1 |
|||||
|
Repayments of borrowings — related party note |
— |
(34.5) |
|||||
|
Payments on capital lease obligations |
(4.5) |
(4.1) |
|||||
|
Proceeds from inventory financing agreements |
105.4 |
— |
|||||
|
Other financing activities |
(0.7) |
2.4 |
|||||
|
Debt issuance costs |
(2.1) |
(9.9) |
|||||
|
Contributions from Calumet GP, LLC |
0.1 |
0.2 |
|||||
|
Taxes paid for phantom unit grants |
(0.4) |
(1.8) |
|||||
|
Distributions to partners |
— |
(57.4) |
|||||
|
Net cash provided by financing activities |
88.0 |
177.1 |
|||||
|
Net increase in cash and cash equivalents |
22.4 |
26.6 |
|||||
|
Cash and cash equivalents at beginning of period |
4.2 |
5.6 |
|||||
|
Cash and cash equivalents at end of period |
$ |
26.6 |
$ |
32.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||
|
(In millions) | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||
|
Reconciliation of Net income (loss) to EBITDA, |
(Unaudited) | ||||||||||||||
|
Net income (loss) |
$ |
9.6 |
$ |
(147.9) |
$ |
3.4 |
$ |
(215.6) |
|||||||
|
Add: |
|||||||||||||||
|
Interest expense |
44.5 |
42.8 |
88.4 |
73.1 |
|||||||||||
|
Depreciation and amortization |
40.9 |
43.8 |
82.0 |
82.6 |
|||||||||||
|
Income tax expense (benefit) |
(0.9) |
0.3 |
(1.0) |
0.5 |
|||||||||||
|
EBITDA |
$ |
94.1 |
$ |
(61.0) |
$ |
172.8 |
$ |
(59.4) |
|||||||
|
Add: |
|||||||||||||||
|
Unrealized gain on derivative instruments |
$ |
(1.3) |
$ |
(23.8) |
$ |
(11.9) |
$ |
(28.4) |
|||||||
|
Realized loss on derivatives, not included in net |
— |
(2.3) |
— |
(4.4) |
|||||||||||
|
Amortization of turnaround costs |
6.6 |
8.3 |
14.0 |
17.4 |
|||||||||||
|
Impairment charges |
— |
33.4 |
0.4 |
33.4 |
|||||||||||
|
Loss on sale of unconsolidated affiliate |
— |
113.9 |
— |
113.9 |
|||||||||||
|
Non-cash equity based compensation and other non-cash items |
2.2 |
1.5 |
5.0 |
4.1 |
|||||||||||
|
Adjusted EBITDA |
$ |
101.6 |
$ |
70.0 |
$ |
180.3 |
$ |
76.6 |
|||||||
|
Less: |
|||||||||||||||
|
Replacement and environmental capital expenditures (1) |
5.6 |
3.3 |
10.9 |
11.1 |
|||||||||||
|
Cash interest expense (2) |
42.0 |
40.1 |
83.6 |
68.5 |
|||||||||||
|
Turnaround costs |
9.8 |
1.7 |
10.3 |
8.1 |
|||||||||||
|
Loss from unconsolidated affiliates |
(0.1) |
(7.1) |
(0.2) |
(18.2) |
|||||||||||
|
Income tax expense (benefit) |
(0.9) |
0.3 |
(1.0) |
0.5 |
|||||||||||
|
Distributable Cash Flow |
$ |
45.2 |
$ |
31.7 |
$ |
76.7 |
$ |
6.6 |
|||||||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH USED IN OPERATING ACTIVITIES | |||||||
|
(In millions) | |||||||
|
Six Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash |
(Unaudited) | ||||||
|
Distributable Cash Flow |
$ |
76.7 |
$ |
6.6 |
|||
|
Add: |
|||||||
|
Replacement and environmental capital expenditures (1) |
10.9 |
11.1 |
|||||
|
Cash interest expense (2) |
83.6 |
68.5 |
|||||
|
Turnaround costs |
10.3 |
8.1 |
|||||
|
Loss from unconsolidated affiliates |
(0.2) |
(18.2) |
|||||
|
Income tax expense (benefit) |
(1.0) |
0.5 |
|||||
|
Adjusted EBITDA |
$ |
180.3 |
$ |
76.6 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(11.9) |
$ |
(28.4) |
|||
|
Realized loss on derivatives, not included in net income (loss) or settled in a prior period |
— |
(4.4) |
|||||
|
Amortization of turnaround costs |
14.0 |
17.4 |
|||||
|
Impairment charges |
0.4 |
33.4 |
|||||
|
Loss on sale of unconsolidated affiliate |
— |
113.9 |
|||||
|
Non-cash equity based compensation and other non-cash items |
5.0 |
4.1 |
|||||
|
EBITDA |
$ |
172.8 |
$ |
(59.4) |
|||
|
Add: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(11.9) |
$ |
(28.4) |
|||
|
Cash interest expense (2) |
(83.6) |
(68.5) |
|||||
|
Asset impairment |
0.4 |
33.4 |
|||||
|
Non-cash equity based compensation |
3.3 |
2.9 |
|||||
|
Lower of cost or market inventory adjustment |
(8.0) |
(44.4) |
|||||
|
Deferred income tax expense (benefit) |
0.1 |
(0.2) |
|||||
|
Loss from unconsolidated affiliates |
0.2 |
18.2 |
|||||
|
Loss on sale of unconsolidated affiliates |
— |
113.4 |
|||||
|
Amortization of turnaround costs |
14.0 |
17.4 |
|||||
|
Income tax benefit (expense) |
1.0 |
(0.5) |
|||||
|
Provision for doubtful accounts |
0.1 |
0.5 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(50.7) |
(60.0) |
|||||
|
Inventories |
(44.3) |
(10.3) |
|||||
|
Other current assets |
(2.1) |
(1.5) |
|||||
|
Derivative activity |
(0.3) |
(10.4) |
|||||
|
Turnaround costs |
(10.3) |
(8.1) |
|||||
|
Other assets |
— |
(0.4) |
|||||
|
Accounts payable |
24.2 |
35.1 |
|||||
|
Accrued interest payable |
(0.1) |
9.1 |
|||||
|
Other current liabilities |
(44.8) |
9.7 |
|||||
|
Other, including changes in noncurrent liabilities |
4.4 |
0.7 |
|||||
|
Net cash used in operating activities |
$ |
(35.6) |
$ |
(51.7) |
|||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET INCOME (LOSS) | |||||||
|
(In millions) | |||||||
|
Three Months Ended June 30, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Segment Adjusted EBITDA to Net income (loss): |
(Unaudited) | ||||||
|
Segment Adjusted EBITDA |
|||||||
|
Specialty products Adjusted EBITDA |
$ |
67.1 |
$ |
59.0 |
|||
|
Fuel products Adjusted EBITDA |
34.0 |
18.9 |
|||||
|
Oilfield services Adjusted EBITDA |
0.5 |
(7.9) |
|||||
|
Total segment Adjusted EBITDA |
$ |
101.6 |
$ |
70.0 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(1.3) |
$ |
(23.8) |
|||
|
Realized loss on derivatives, not included in net income (loss) or settled in a prior period |
— |
(2.3) |
|||||
|
Amortization of turnaround costs |
6.6 |
8.3 |
|||||
|
Impairment charges |
— |
33.4 |
|||||
|
Loss on sale of unconsolidated affiliate |
— |
113.9 |
|||||
|
Non-cash equity based compensation and other non-cash items |
2.2 |
1.5 |
|||||
|
EBITDA |
$ |
94.1 |
$ |
(61.0) |
|||
|
Less: |
|||||||
|
Interest expense |
$ |
44.5 |
$ |
42.8 |
|||
|
Depreciation and amortization |
40.9 |
43.8 |
|||||
|
Income tax expense (benefit) |
(0.9) |
0.3 |
|||||
|
Net income (loss) |
$ |
9.6 |
$ |
(147.9) |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||
|
SELECTED COMMODITY DERIVATIVE INSTRUMENTS | |||||||||
|
As of June 30, 2017 | |||||||||
|
Fuel Products Segment | |||||||||
|
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Western Canadian Select ("WCS") and New York Mercantile Exchange West Texas Intermediate ("NYMEX WTI"). The following table provides a summary of crude oil basis swap contracts as of June 30, 2017, in the Partnership's fuel products segment: | |||||||||
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average | ||||||
|
Third Quarter 2017 |
644,000 |
7,000 |
$ |
(13.22) |
|||||
|
Fourth Quarter 2017 |
644,000 |
7,000 |
$ |
(13.22) |
|||||
|
Total |
1,288,000 |
||||||||
|
Average differential |
$ |
(13.22) |
|||||||
|
Calumet has entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. The following table provides a summary of crude oil percentage basis swap contracts related to crude oil purchases as of June 30, 2017, in the Partnership's fuel products segment: | |||||||||
|
Crude Oil Percentage Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Fixed Percentage | ||||||
|
Third Quarter 2017 |
276,000 |
3,000 |
72.3% | ||||||
|
Fourth Quarter 2017 |
276,000 |
3,000 |
72.3% | ||||||
|
Total |
552,000 |
||||||||
|
Average percentage |
72.3% | ||||||||
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-reports-second-quarter-2017-results-300499632.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/4/20177/14/2017 - Calumet Specialty Products Partners, L.P. To Release Second Quarter 2017 Results on August 4th
Calumet Specialty Products Partners, L.P. To Release Second Quarter 2017 Results on August 4th
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, July 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 fuel products, today announced that it will report results for the second quarter 2017 on August 4, 2017. A conference call is scheduled for 9:00 a.m. ET on August 4, 2017 to discuss the financial and operational results for the second quarter.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 55345085. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
View original content:http://www.prnewswire.com/news-releases/calumet-specialty-products-partners-lp-to-release-second-quarter-2017-results-on-august-4th-300488636.html
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/14/2017Calumet Specialty Products Partners, L.P. To Attend Upcoming Bank Of America Merrill Lynch 2017 Energy Credit Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, June 1, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the Bank of America Merrill Lynch 2017 Energy Credit Conference in New York City on Wednesday June 7, 2017.
Management will provide an overview of the Company's business during a live presentation and will be available to participate in one-on-one meetings with investors who are registered to attend the conference. The presentation will be webcast live at 3pm EDT and can be accessed by visiting the events section of the investor relations page of the Company's website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/1/20175/9/2017 - Calumet Specialty Products Partners, L.P. Announces Launch of Uninhibited Transformer Oil
Calumet Specialty Products Partners, L.P. Announces Launch of Uninhibited Transformer Oil
Source: PR Newswire
INDIANAPOLIS, May 9, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuel products, announced today the launch of CALTRAN 60-00 Group U, an all-new product that is the company's first uninhibited transformer oil.
CALTRAN 60-00 Group U is a naphthenic transformer oil that has been specifically engineered by the company's in-house product development group to meet the International Standard IEC 60296, ed. 4, 2012 General Specifications for uninhibited transformer oil – the technology has been independently verified by an accredited third party lab. Uninhibited transformer oil contains no additives, providing superior protection for electrical equipment.
CALTRAN 60-00 Group U is appropriate for use in distribution and power transformers and switchgear. In addition, CALTRAN 60-00 Group U offers:
"Customers now have a superior choice in protecting their investment. Our new transformer oil forms optimal protection for electrical equipment; combining enhanced protection against corrosion, longer oil life and greater efficiency," said Harji Gill, VP Export Sales & Business Development at Calumet Specialty Products Partners. "Our product development team is proud to have met the current stringent International Standard. This innovative transformer oil demonstrates Calumet's commitment to developing high quality specialty products for our customers."
CALTRAN 60-00 Group U is available for shipment starting June 2017. For more information visit www.calumetlubricants.com/truly-uninhibited or contact Harji Gill at Harji.Gill@CLMT.com or Matt Snyder at Matt.Snyder@CLMT.com.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/9/2017Calumet Specialty Products Partners, L.P. Reports First Quarter 2017 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, May 4, 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 reported results for the first quarter ended March 31, 2017, as follows:
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per unit data) | |||||||
|
Net loss |
$ |
(6.2) |
$ |
(67.7) |
|||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.08) |
$ |
(0.87) |
|||
|
Adjusted EBITDA |
$ |
78.7 |
$ |
6.6 |
|||
The Partnership's $6.2 million net loss and Adjusted EBITDA of $78.7 million for the first quarter 2017 included, but is not limited to, the impact of a favorable lower of cost or market ("LCM") inventory adjustment of $4.0 million.
For detailed information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"Our solid performance this quarter shows that we continue to turn the corner on our transformation, as we successfully execute against the strategic goals we set last year," said Tim Go, Chief Executive Officer of Calumet. "We believe that our ongoing efforts to eliminate waste, reduce costs, and capture increased margins across our business have begun to positively impact our financial performance. This was evident by our decreased net loss, solid improvement in Adjusted EBITDA and improved sequential gross margins in both the specialty and fuels businesses. We remain focused on further reducing the costs of doing business, while simultaneously growing our sales volumes and creating innovative new products, all of which should help us drive greater profitability in the future."
Go continued, "I am pleased to announce that Calumet is introducing its first ever Group III synthetic base oil product, CALPARTM 4GIII. The Group III classification characterizes the most highly refined base oil derived from crude oil, providing viscosity index levels above 120 and very high saturate content. CALPARTM 4GIII is designed for extensive use in engine oil formulations to improve gas mileage, reduce emissions and extend oil change intervals. Our proprietary technology was developed in-house by our product development team and shows the innovation capabilities of our organization. In fact, with the launch of CALPARTM 4GIII, Calumet becomes the first virgin producer of Group III base oils based in the United States."
Go concluded, "We remain encouraged by the sequential and year-over-year progress we have made thus far through our self-help initiatives, including lowering our cost of compliance on RINs, and believe that the results of our efforts will continue to flow through to our financial performance and position the Company towards sustainable growth in the coming quarters."
Specialty Products Segment | Results Summary
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Specialty products segment gross profit |
$ |
82.3 |
$ |
99.3 |
|||
|
Specialty products segment Adjusted EBITDA |
$ |
45.6 |
$ |
58.5 |
|||
|
Specialty products segment gross profit per barrel |
$ |
31.85 |
$ |
42.08 |
|||
During the first quarter 2017, total specialty products segment sales volumes improved by nearly 10% compared to year ago levels, with volume growth exhibited across lubricating oils, waxes and branded and packaged specialty products categories. Gross profit per barrel increased sequentially to $31.85 this period compared to $25.30 in the fourth quarter 2016. Adjusted EBITDA of $45.6 million also increased sequentially from $28.0 million in the fourth quarter of 2016. The financial impact from price adjustments during the period were partially offset by periodic downtime for maintenance activities at two facilities. Both Adjusted EBITDA and gross profit per barrel figures were lower than the same period in the prior year, primarily due to elevated margin capture in the 2016 period as crude oil prices trended rapidly downward during the first quarter of 2016. First quarter Adjusted EBITDA also benefited from a $2.7 million favorable LCM inventory adjustment.
Fuel Products Segment | Results Summary
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Fuel products segment gross profit (loss) |
$ |
47.2 |
$ |
(19.0) |
|||
|
Fuel products segment Adjusted EBITDA |
$ |
36.8 |
$ |
(46.0) |
|||
|
Fuel products segment gross profit (loss) per barrel (including hedging activities) |
$ |
5.19 |
$ |
(2.12) |
|||
|
Fuel products segment gross profit (loss) per barrel (excluding hedging activities) |
$ |
5.19 |
$ |
(2.43) |
|||
During the first quarter 2017, total fuel products segment sales volumes improved by nearly 2% compared to year-ago levels, with volume growth exhibited across diesel, asphalt and jet fuel categories. Gross profit and Adjusted EBITDA also demonstrated marked improvement compared to the year-ago period, driven by year-over-year increases in benchmark refined product margins and decreased Renewable Identification Numbers ("RINs") compliance costs. Specifically, the year-over-year performance improvements were driven in part by the approximate 30% improvement in the benchmark Gulf Coast 2/1/1 crack spread and higher sales volume. The segment also benefited from the absence of losses from Dakota Prairie Refining, LLC, a joint venture refinery, which was sold during last year's first quarter, as well as by a decline in operating costs associated with RINs pricing. First quarter Adjusted EBITDA also benefited from a $2.7 million favorable LCM inventory adjustment.
Oilfield Services Segment | Results Summary
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(Dollars in millions) | |||||||
|
Oilfield services segment gross profit |
$ |
10.0 |
$ |
5.9 |
|||
|
Oilfield services segment Adjusted EBITDA |
$ |
(3.7) |
$ |
(5.9) |
|||
During the first quarter, the U.S. land-based rig count increased by approximately 33% on a year-over-year basis. Elevated drilling activity drove a 57% increase in revenue compared to the same period last year. The oilfield services segment's gross profit also grew meaningfully compared to both the prior year period and prior quarter. Adjusted EBITDA for the first quarter increased $2.2 million year-over-year, but declined sequentially due to an unfavorable LCM inventory adjustment of $1.4 million.
Partnership Liquidity
As of March 31, 2017, the Partnership had availability under its revolving credit facility of $358.0 million, based on a $471.0 million borrowing base, $73.8 million in outstanding standby letters of credit and $39.2 million in outstanding borrowings. In addition, the Partnership had $4.6 million of cash on hand as of March 31, 2017. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2017 Capital Spending Forecast
Through the first quarter of 2017, total capital spending was $11.8 million, down over 70% compared to the same period in 2016. For the full-year 2017, the Partnership continues to anticipate total capital expenditures to come within range of its previously stated annual guidance of $120 to $140 million.
Full-Year 2017 RFS Compliance Impact Forecast
In conjunction with the Partnership's ongoing compliance with the Renewable Fuel Standard, the Partnership records its outstanding RINs obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 128 million RINs for the full-year 2017, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency to any of the Partnership's fuel refineries at a later time. Calumet expects to be able to satisfy a significant portion of its 2017 gross RINs obligation through internal blending and other self-help efforts.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended March 31, | |||||
|
2017 |
2016 | ||||
|
(In bpd) | |||||
|
Total sales volume (1) |
129,856 |
124,440 |
|||
|
Total feedstock runs (2) |
132,165 |
128,385 |
|||
|
Facility production: (3) |
|||||
|
Specialty products: |
|||||
|
Lubricating oils |
15,160 |
13,854 |
|||
|
Solvents |
7,345 |
7,352 |
|||
|
Waxes |
1,477 |
1,335 |
|||
|
Packaged and synthetic specialty products (4) |
2,721 |
2,125 |
|||
|
Other |
1,893 |
908 |
|||
|
Total |
28,596 |
25,574 |
|||
|
Fuel products: |
|||||
|
Gasoline |
37,568 |
38,043 |
|||
|
Diesel |
33,011 |
30,347 |
|||
|
Jet fuel |
6,763 |
5,676 |
|||
|
Asphalt, heavy fuel oils and other |
29,413 |
28,240 |
|||
|
Total |
106,755 |
102,306 |
|||
|
Total facility production (3) |
135,351 |
127,880 |
|||
|
(1) |
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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. |
|
The increase in total sales volume for the three months ended March 31, 2017, as compared to the same period in 2016, is due primarily to increased sales volume of lubricating oils, waxes and branded and packaged products as a result of improving market conditions and increased sales volume of fuel products including diesel and asphalt as a result of increased production at the Great Falls refinery from the expansion project completed in the first quarter 2016 and market conditions. | |
|
(2) |
Total feedstock runs represent the bpd of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
|
The increase in total feedstock runs for the three months ended March 31, 2017, as compared to the same period in 2016, is due primarily to increased feedstock runs at the Great Falls refinery from the expansion project completed in the first quarter 2016 and improved operational reliability. | |
|
(3) |
Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
|
The change in total facility production for the three months ended March 31, 2017, as compared to the same period in 2016, is due primarily to the operational items discussed above in footnote 2. | |
|
(4) |
Packaged and synthetic specialty products include production at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three months ended March 31, 2017 and 2016:
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In millions) | |||||||
|
Derivative gain reflected in sales |
$ |
— |
$ |
16.0 |
|||
|
Derivative loss reflected in cost of sales |
— |
(13.9) |
|||||
|
Derivative gain reflected in gross profit |
$ |
— |
$ |
2.1 |
|||
|
Realized loss on derivative instruments |
$ |
(4.9) |
$ |
(12.3) |
|||
|
Unrealized gain on derivative instruments |
10.6 |
4.6 |
|||||
|
Total derivative gain (loss) reflected in the unaudited condensed consolidated statements of operations |
$ |
5.7 |
$ |
(5.6) |
|||
|
Total loss on commodity derivative settlements |
$ |
(4.9) |
$ |
(12.3) |
|||
Webcast Information
A conference call is scheduled for 1:00 p.m. ET on May 4, 2017, to discuss the financial and operational results for the first quarter of fiscal year 2017. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 10792624. 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 section.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures, (iv) expected benefits to the Partnership from the distribution suspension and (v) estimated capital expenditures as a result of required audits or required operational changes or other environmental and regulatory liabilities. 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 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 acquisitions. 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 hydrocarbon products, fuels, other refined products and oilfield services; 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; 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 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; our ability to access the debt and equity markets; 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 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash used in operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash used in operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA and Distributable Cash Flow 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
The definition of Adjusted EBITDA presented in this release is consistent with the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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 2016 Annual Report on Form 10-K and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
The preliminary expected range for forward-looking non-GAAP Adjusted EBITDA contained in this press release is provided only on a non-GAAP basis, due to the inherent difficulty of calculating items that would be included in Net income (loss) on a GAAP basis. Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or market adjustments, gains and losses on disposal or impairment of assets, equity-based compensation, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on Calumet's Adjusted EBITDA and Calumet is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net loss, operating income (loss), net cash used in operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash used in operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
|
(In millions, except unit and per unit data) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
Sales |
$ |
937.4 |
$ |
713.0 |
|||
|
Cost of sales |
797.9 |
626.8 |
|||||
|
Gross profit |
139.5 |
86.2 |
|||||
|
Operating costs and expenses: |
|||||||
|
Selling |
27.5 |
30.5 |
|||||
|
General and administrative |
31.8 |
27.6 |
|||||
|
Transportation |
40.6 |
39.2 |
|||||
|
Taxes other than income taxes |
5.5 |
5.7 |
|||||
|
Asset impairment |
0.4 |
— |
|||||
|
Other |
1.9 |
2.0 |
|||||
|
Operating income (loss) |
31.8 |
(18.8) |
|||||
|
Other income (expense): |
|||||||
|
Interest expense |
(43.9) |
(30.3) |
|||||
|
Gain (loss) on derivative instruments |
5.7 |
(7.7) |
|||||
|
Loss from unconsolidated affiliates |
(0.1) |
(11.1) |
|||||
|
Other |
0.2 |
0.4 |
|||||
|
Total other expense |
(38.1) |
(48.7) |
|||||
|
Net loss before income taxes |
(6.3) |
(67.5) |
|||||
|
Income tax expense (benefit) |
(0.1) |
0.2 |
|||||
|
Net loss |
$ |
(6.2) |
$ |
(67.7) |
|||
|
Allocation of net loss: |
|||||||
|
Net loss |
$ |
(6.2) |
$ |
(67.7) |
|||
|
Less: |
|||||||
|
General partner's interest in net loss |
(0.1) |
(1.4) |
|||||
|
Net loss available to limited partners |
$ |
(6.1) |
$ |
(66.3) |
|||
|
Weighted average limited partner units outstanding: |
|||||||
|
Basic and Diluted |
77,412,634 |
76,449,841 |
|||||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.08) |
$ |
(0.87) |
|||
|
Cash distributions declared per limited partner unit |
$ |
— |
$ |
0.685 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
(In millions) | |||||||
|
March 31, 2017 |
December 31, 2016 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
4.6 |
$ |
4.2 |
|||
|
Accounts receivable, net |
254.6 |
238.7 |
|||||
|
Inventories |
436.4 |
386.2 |
|||||
|
Derivative assets |
1.5 |
0.8 |
|||||
|
Prepaid expenses and other current assets |
13.5 |
11.0 |
|||||
|
Total current assets |
710.6 |
640.9 |
|||||
|
Property, plant and equipment, net |
1,654.8 |
1,678.0 |
|||||
|
Investment in unconsolidated affiliates |
10.2 |
10.3 |
|||||
|
Goodwill |
177.2 |
177.2 |
|||||
|
Other intangible assets, net |
170.3 |
178.5 |
|||||
|
Other noncurrent assets, net |
33.5 |
40.3 |
|||||
|
Total assets |
$ |
2,756.6 |
$ |
2,725.2 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
319.7 |
$ |
295.5 |
|||
|
Accrued interest payable |
55.1 |
52.5 |
|||||
|
Accrued salaries, wages and benefits |
17.5 |
11.5 |
|||||
|
Other taxes payable |
20.9 |
20.8 |
|||||
|
Obligations under inventory financing agreements |
31.3 |
— |
|||||
|
Other current liabilities |
52.2 |
99.6 |
|||||
|
Current portion of long-term debt |
3.5 |
3.5 |
|||||
|
Derivative liabilities |
4.9 |
14.8 |
|||||
|
Total current liabilities |
505.1 |
498.2 |
|||||
|
Noncurrent deferred income taxes |
2.3 |
2.3 |
|||||
|
Pension and postretirement benefit obligations |
11.1 |
11.3 |
|||||
|
Other long-term liabilities |
0.9 |
1.0 |
|||||
|
Long-term debt, less current portion |
2,023.9 |
1,993.7 |
|||||
|
Total liabilities |
2,543.3 |
2,506.5 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
221.6 |
227.0 |
|||||
|
Accumulated other comprehensive loss |
(8.3) |
(8.3) |
|||||
|
Total partners' capital |
213.3 |
218.7 |
|||||
|
Total liabilities and partners' capital |
$ |
2,756.6 |
$ |
2,725.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
(In millions) | |||||||
|
Operating activities |
|||||||
|
Net loss |
$ |
(6.2) |
$ |
(67.7) |
|||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
|
Depreciation and amortization |
41.1 |
38.8 |
|||||
|
Amortization of turnaround costs |
7.4 |
9.1 |
|||||
|
Non-cash interest expense |
2.3 |
1.9 |
|||||
|
Provision for doubtful accounts |
0.1 |
0.3 |
|||||
|
Unrealized gain on derivative instruments |
(10.6) |
(4.6) |
|||||
|
Asset impairment |
0.4 |
— |
|||||
|
Loss on disposal of fixed assets |
1.3 |
0.8 |
|||||
|
Non-cash equity based compensation |
1.5 |
1.8 |
|||||
|
Lower of cost or market inventory adjustment |
(4.0) |
(8.1) |
|||||
|
Loss from unconsolidated affiliates |
0.1 |
11.1 |
|||||
|
Other non-cash activities |
1.5 |
1.2 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(16.0) |
(20.7) |
|||||
|
Inventories |
(46.2) |
(36.0) |
|||||
|
Prepaid expenses and other current assets |
(4.0) |
— |
|||||
|
Derivative activity |
(0.1) |
(3.6) |
|||||
|
Turnaround costs |
(0.5) |
(6.4) |
|||||
|
Other assets |
(0.2) |
(0.3) |
|||||
|
Accounts payable |
30.1 |
(1.8) |
|||||
|
Accrued interest payable |
2.6 |
14.2 |
|||||
|
Accrued salaries, wages and benefits |
5.6 |
(9.2) |
|||||
|
Other taxes payable |
0.1 |
(0.4) |
|||||
|
Other liabilities |
(46.8) |
24.0 |
|||||
|
Pension and postretirement benefit obligations |
(0.2) |
(0.5) |
|||||
|
Net cash used in operating activities |
(40.7) |
(56.1) |
|||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(17.2) |
(66.8) |
|||||
|
Investment in unconsolidated affiliates |
— |
(0.9) |
|||||
|
Net cash used in investing activities |
(17.2) |
(67.7) |
|||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
219.7 |
393.9 |
|||||
|
Repayments of borrowings — revolving credit facility |
(190.7) |
(210.0) |
|||||
|
Repayments of borrowings — related party note |
— |
(1.5) |
|||||
|
Payments on capital lease obligations |
(2.2) |
(2.0) |
|||||
|
Proceeds from inventory financing agreements |
32.2 |
— |
|||||
|
Other financing activities |
(0.4) |
2.4 |
|||||
|
Contributions from Calumet GP, LLC |
0.1 |
— |
|||||
|
Taxes paid for phantom unit grants |
(0.4) |
— |
|||||
|
Distributions to partners |
— |
(57.4) |
|||||
|
Net cash provided by financing activities |
58.3 |
125.4 |
|||||
|
Net increase in cash and cash equivalents |
0.4 |
1.6 |
|||||
|
Cash and cash equivalents at beginning of period |
4.2 |
5.6 |
|||||
|
Cash and cash equivalents at end of period |
$ |
4.6 |
$ |
7.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||
|
(In millions) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow: |
(Unaudited) | ||||||
|
Net loss |
$ |
(6.2) |
$ |
(67.7) |
|||
|
Add: |
|||||||
|
Interest expense |
43.9 |
30.3 |
|||||
|
Depreciation and amortization |
41.1 |
38.8 |
|||||
|
Income tax expense (benefit) |
(0.1) |
0.2 |
|||||
|
EBITDA |
$ |
78.7 |
$ |
1.6 |
|||
|
Add: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(10.6) |
$ |
(4.6) |
|||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
— |
(2.1) |
|||||
|
Amortization of turnaround costs |
7.4 |
9.1 |
|||||
|
Impairment charges |
0.4 |
— |
|||||
|
Non-cash equity based compensation and other non-cash items |
2.8 |
2.6 |
|||||
|
Adjusted EBITDA |
$ |
78.7 |
$ |
6.6 |
|||
|
Less: |
|||||||
|
Replacement and environmental capital expenditures (1) |
$ |
5.3 |
$ |
7.8 |
|||
|
Cash interest expense (2) |
41.6 |
28.4 |
|||||
|
Turnaround costs |
0.5 |
6.4 |
|||||
|
Loss from unconsolidated affiliates |
(0.1) |
(11.1) |
|||||
|
Income tax expense (benefit) |
(0.1) |
0.2 |
|||||
|
Distributable Cash Flow |
$ |
31.5 |
$ |
(25.1) |
|||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA | |||||||
|
TO NET CASH USED IN OPERATING ACTIVITIES | |||||||
|
(In millions) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash used in operating activities: |
(Unaudited) | ||||||
|
Distributable Cash Flow |
$ |
31.5 |
$ |
(25.1) |
|||
|
Add: |
|||||||
|
Replacement and environmental capital expenditures (1) |
5.3 |
7.8 |
|||||
|
Cash interest expense (2) |
41.6 |
28.4 |
|||||
|
Turnaround costs |
0.5 |
6.4 |
|||||
|
Loss from unconsolidated affiliates |
(0.1) |
(11.1) |
|||||
|
Income tax expense (benefit) |
(0.1) |
0.2 |
|||||
|
Adjusted EBITDA |
$ |
78.7 |
$ |
6.6 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(10.6) |
$ |
(4.6) |
|||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
— |
(2.1) |
|||||
|
Amortization of turnaround costs |
7.4 |
9.1 |
|||||
|
Impairment charges |
0.4 |
— |
|||||
|
Non-cash equity based compensation and other non-cash items |
2.8 |
2.6 |
|||||
|
EBITDA |
$ |
78.7 |
$ |
1.6 |
|||
|
Add: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(10.6) |
$ |
(4.6) |
|||
|
Cash interest expense (2) |
(41.6) |
(28.4) |
|||||
|
Asset impairment |
0.4 |
— |
|||||
|
Non-cash equity based compensation |
1.5 |
1.8 |
|||||
|
Lower of cost or market inventory adjustment |
(4.0) |
(8.1) |
|||||
|
Loss from unconsolidated affiliates |
0.1 |
11.1 |
|||||
|
Amortization of turnaround costs |
7.4 |
9.1 |
|||||
|
Income tax benefit (expense) |
0.1 |
(0.2) |
|||||
|
Provision for doubtful accounts |
0.1 |
0.3 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(16.0) |
(20.7) |
|||||
|
Inventories |
(46.2) |
(36.0) |
|||||
|
Other current assets |
(4.0) |
— |
|||||
|
Turnaround costs |
(0.5) |
(6.4) |
|||||
|
Derivative activity |
(0.1) |
(3.6) |
|||||
|
Other assets |
(0.2) |
(0.3) |
|||||
|
Accounts payable |
30.1 |
(1.8) |
|||||
|
Accrued interest payable |
2.6 |
14.2 |
|||||
|
Other current liabilities |
(41.1) |
14.4 |
|||||
|
Other, including changes in noncurrent liabilities |
2.6 |
1.5 |
|||||
|
Net cash used in operating activities |
$ |
(40.7) |
$ |
(56.1) |
|||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | |||||||
|
(In millions) | |||||||
|
Three Months Ended March 31, | |||||||
|
2017 |
2016 | ||||||
|
Reconciliation of Segment Adjusted EBITDA to Net loss: |
(Unaudited) | ||||||
|
Segment Adjusted EBITDA |
|||||||
|
Specialty products Adjusted EBITDA |
$ |
45.6 |
$ |
58.5 |
|||
|
Fuel products Adjusted EBITDA |
36.8 |
(46.0) |
|||||
|
Oilfield services Adjusted EBITDA |
(3.7) |
(5.9) |
|||||
|
Total segment Adjusted EBITDA |
$ |
78.7 |
$ |
6.6 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(10.6) |
$ |
(4.6) |
|||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
— |
(2.1) |
|||||
|
Amortization of turnaround costs |
7.4 |
9.1 |
|||||
|
Impairment charges |
0.4 |
— |
|||||
|
Non-cash equity based compensation and other non-cash items |
2.8 |
2.6 |
|||||
|
EBITDA |
$ |
78.7 |
$ |
1.6 |
|||
|
Less: |
|||||||
|
Interest expense |
$ |
43.9 |
$ |
30.3 |
|||
|
Depreciation and amortization |
41.1 |
38.8 |
|||||
|
Income tax expense (benefit) |
(0.1) |
0.2 |
|||||
|
Net loss |
$ |
(6.2) |
$ |
(67.7) |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||
|
SELECTED COMMODITY DERIVATIVE INSTRUMENTS | |||||||||
|
As of March 31, 2017 | |||||||||
|
Fuel Products Segment | |||||||||
|
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Western Canadian Select ("WCS") and New York Mercantile Exchange West Texas Intermediate ("NYMEX WTI"). The following table provides a summary of crude oil basis swap contracts as of March 31, 2017, in the Partnership's fuel products segment: | |||||||||
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average Differential to NYMEX WTI | ||||||
|
Second Quarter 2017 |
637,000 |
7,000 |
$ |
(13.22) | |||||
|
Third Quarter 2017 |
644,000 |
7,000 |
$ |
(13.22) | |||||
|
Fourth Quarter 2017 |
644,000 |
7,000 |
$ |
(13.22) | |||||
|
Total |
1,925,000 |
||||||||
|
Average differential |
$ |
(13.22) | |||||||
|
Calumet has entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. The following table provides a summary of crude oil percentage basis swap contracts related to crude oil purchases as of March 31, 2017, in the Partnership's fuel products segment: | |||||||||
|
Crude Oil Percentage Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Fixed Percentage of NYMEX WTI | ||||||
|
Second Quarter 2017 |
273,000 |
3,000 |
72.3% | ||||||
|
Third Quarter 2017 |
276,000 |
3,000 |
72.3% | ||||||
|
Fourth Quarter 2017 |
276,000 |
3,000 |
72.3% | ||||||
|
Total |
825,000 |
||||||||
|
Average percentage |
72.3% | ||||||||
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/4/20175/1/2017 - Calumet Specialty Products Partners, L.P. Announces Launch of Group III Synthetic Base Oil
Calumet Specialty Products Partners, L.P. Announces Launch of Group III Synthetic Base Oil
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, May 1, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuel products, announced today the launch of CALPAR 4GIII, the Company's first API Group III synthetic base oil.
CALPAR 4GIII is a high quality paraffinic base oil that has been engineered by the Company's in-house R&D and technical refining staff to meet the American Petroleum Institute requirements for Group III base oils. The Group III classification characterizes the most highly refined base oil derived from crude oil, providing viscosity index levels above 120 and very high saturate content.
CALPAR 4GIII is designed for extensive use in engine oil formulations to improve gas mileage, reduce emissions and extend oil change intervals. CALPAR 4GIII offers:
"We are very proud to be the first U.S. based virgin producer of Group III base oil. The addition of Group III production to our Shreveport product slate demonstrates Calumet's commitment to keeping up with today's evolving marketplace," said Bill Anderson, Executive VP of Sales at Calumet Specialty Products Partners. "This launch broadens and enhances our portfolio, which now includes products across Group I, Group II, Group III and Group V."
CALPAR 4GIII is available to ship from Calumet's Shreveport, LA refinery and its Burnham, IL terminal. For more information about CALPAR 4GIII or the complete line of CALPAR base oils, please visit www.calumetlubricants.com/group-III.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
5/1/20173/31/2017 - Calumet Specialty Products Partners, L.P. Announces Change of Board of Directors' Composition
Calumet Specialty Products Partners, L.P. Announces Change of Board of Directors' Composition
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, March 31, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet"), a leading independent producer of specialty hydrocarbon and fuels products, today announced that George C. Morris III has retired from the Board of Directors of Calumet's general partner, effective immediately. Morris has served on the Board of Calumet's general partner since 2009, and he has acted as a valued advisor to the Company on a number of strategic matters both during and prior to his service on the Board of Directors.
"I would like to personally thank George for the meaningful contributions he has made to Calumet during his tenure on the Board," said Tim Go, CEO of Calumet. "While we don't have any immediate plans to fill George's position on the Board of Directors of Calumet's general partner, we do expect to add talent to the Board in the future that will bring strong industry experience and knowledge over the long-term."
Morris said, "I'm thankful for the opportunity I've had to serve on the Board of Directors for the last eight years, but my other responsibilities have become too great for me to be able to continue to fulfill the requirements of my position on the Board. Having helped design and build its unique specialty products business, I strongly believe in Calumet's future and believe that Tim is assembling a strong management team. I'm optimistic that Calumet will soon be able to grow again as the new management team executes against Calumet's vision to become the premier specialty petroleum products company in the world."
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/31/20172/24/2017 - Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Full Year 2016 Results
Calumet Specialty Products Partners, L.P. Reports Fourth Quarter and Full Year 2016 Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Feb. 24, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of petroleum-based specialty products, today reported results for the quarter and year ended December 31, 2016, as follows:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(Dollars in millions, except per unit data) | |||||||||||
|
Net income (loss) |
$ |
(79.6) |
$ |
(116.8) |
$ |
(328.6) |
$ |
(139.4) | |||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(1.01) |
$ |
(1.56) |
$ |
(4.18) |
$ |
(2.05) | |||
|
Adjusted EBITDA |
$ |
27.7 |
$ |
(37.6) |
$ |
158.2 |
$ |
257.7 | |||
The Partnership's $79.6 million net loss for the fourth quarter 2016 includes the impact of two items: (1) a favorable lower of cost or market ("LCM") inventory adjustment of $5.9 million and (2) $26.2 million of losses related to liquidation of last-in, first-out ("LIFO") inventory layers. The Partnership's Adjusted EBITDA of $27.7 million for the fourth quarter 2016 includes the impact of two items: (1) a favorable LCM inventory adjustment of $9.6 million and (2) $26.2 million of losses related to the liquidation of LIFO inventory layers. For detailed information on Adjusted EBITDA and a reconciliation of Adjusted EBITDA to the nearest comparable GAAP measure for the periods presented above, please see the sections of this release entitled "Non-GAAP Financial Measures" and "Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow."
Management Commentary
"2016 was a year of transition, stabilization and foundation building for our Partnership," stated Tim Go, Chief Executive Officer of Calumet. "We refocused our long-term vision on our core specialty business, took decisive action to enhance our liquidity profile, and began the process of optimizing our asset portfolio through the sale of Dakota Prairie Refining, LLC and by shedding some third party terminal agreements. Most of our leadership team was upgraded through the addition of significant talent with deep and diverse industry experience. Lastly, we implemented and executed an aggressive three-year operations excellence strategy and surpassed our 2016 self-help expectations, generating an estimated $89 million of our annual Adjusted EBITDA, which helped us offset a challenging fuels refining environment."
"In terms of our performance during the fourth quarter, we witnessed typical seasonal weakness across all three of our segments. On the plus side, 2016 capital expenditures ended the year below our prior guidance at $122 million, representing an annual reduction of over 70 percent year-over-year. As of December 31, 2016, we had $365 million in available liquidity through our cash position and revolving credit facility."
"As we enter 2017, we do so with cautious optimism as we believe our strategy to eliminate waste, drive efficiencies and develop best practices across our organization is working. We completed additional cost reductions early in 2017, through ongoing headcount rationalization and other waste reduction initiatives. We believe these efforts will remove an additional $10 million to $20 million in annualized SG&A expenses. Further, we adjusted our product pricing within our specialty products segment in January to increase our margin capture and to offset the continued increases in prices of our crude oil feedstocks. Both of these initiatives, as well as several others like our recently announced packaging agreement with BP, have us on track to hit our original $150 million to $200 million Adjusted EBITDA target for our operations excellence self-help initiatives by the end of fiscal year 2018."
Go concluded, "Given the positive impact that our operations excellence initiatives are having on the business, we also plan to launch the second stage of our strategic plan, which involves opportunistic growth projects. We have identified a number of margin enhancing internal growth projects capable of generating one-to-two-year payouts with low to moderate capital investment requirements. For example, we approved and filed permit applications for a flexibility project at our Superior refinery. This flexibility project will allow us to optimize our yields. Other quick payback capital initiatives include new product launches within our specialty products segment, the completion of our new ERP system, and a portfolio of investments that expand our outbound logistics capabilities. We have offset these expenditures with capital discipline in our base operations, as a result we expect 2017's capital expenditure program to be fairly similar to 2016. Finally, we remain committed to reducing our debt leverage profile and believe we have the right strategic plan to reposition the Partnership for long-term growth."
Specialty Products Segment | Results Summary
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(Dollars in millions, except per barrel data) | |||||||||||
|
Specialty products segment gross profit |
$ |
59.3 |
$ |
71.3 |
$ |
338.1 |
$ |
370.2 | |||
|
Specialty products segment Adjusted EBITDA |
$ |
28.0 |
$ |
29.3 |
$ |
188.9 |
$ |
201.7 | |||
|
Specialty products segment gross profit per barrel |
$ |
25.30 |
$ |
33.16 |
$ |
34.57 |
$ |
40.24 | |||
During the fourth quarter 2016, total specialty products sales volumes increased 9.0% year-over-year, however segment gross profit declined due to a rise in crude oil prices which outpaced adjustments in product pricing. Specialty products segment Adjusted EBITDA for the fourth quarter 2016 was also impacted by a $1.8 million unfavorable LCM inventory adjustment and a $7.1 million unfavorable LIFO inventory liquidation loss. Specialty products segment gross profit per barrel in the period compared to last year's comparable quarter was impacted by a rise in crude oil prices which outpaced adjustments in product pricing, partially offset by a favorable LCM inventory adjustment.
During fiscal year 2016, total specialty products sales volumes increased 6.3% year-over-year, however segment gross profit declined due to ongoing volatility in feedstock costs and market supply that impacted margin capture in the period. Specialty products segment Adjusted EBITDA for 2016 was also impacted by a $13.7 million favorable LCM inventory adjustment and an $8.8 million unfavorable LIFO inventory liquidation loss. Specialty products segment gross profit per barrel during fiscal year 2016 compared to 2015 was impacted by a rise in crude oil prices which outpaced adjustments in product pricing, partially offset by a decrease in the unfavorable LCM inventory adjustment.
Fuel Products Segment | Results Summary
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(Dollars in millions, except per barrel data) | |||||||||||
|
Fuel products segment gross profit (loss) |
$ |
13.2 |
$ |
(49.0) |
$ |
48.2 |
$ |
166.2 | |||
|
Fuel products segment Adjusted EBITDA |
$ |
3.2 |
$ |
(59.8) |
$ |
(10.1) |
$ |
81.9 | |||
|
Fuel products segment gross profit (loss) per barrel |
$ |
1.25 |
$ |
(5.26) |
$ |
1.16 |
$ |
4.51 | |||
|
Fuel products segment gross profit (loss) per barrel |
$ |
1.19 |
$ |
(5.23) |
$ |
0.96 |
$ |
4.26 | |||
During the fourth quarter 2016, improved fuel products segment gross profit performance was driven primarily by a 20.5% year-over-year increase in the benchmark Gulf Coast 2/1/1 crack spread, an increase in total fuel products sales volumes and decreased Renewable Identification Numbers ("RINs") expense. Fuel products segment sales volumes increased by 13.7%, primarily as a result of the Great Falls refinery expansion completed in February 2016. Additionally, during the fourth quarter 2016, a favorable LCM inventory adjustment of $12.3 million was more than offset by a LIFO inventory liquidation loss of $19.7 million.
For fiscal year 2016, total fuel products sales volumes increased by 12.6% year-over-year, driven by higher diesel, jet fuel and asphalt production primarily related to the Great Falls refinery expansion completed in 2016. Fuel products segment results for fiscal year 2016 were negatively impacted by a 31.4% year-over-year decline in the benchmark Gulf Coast 2/1/1 crack spread. Of note, a favorable LCM inventory adjustment of $36.9 million was partially offset by a LIFO inventory liquidation loss of $19.7 million during fiscal year 2016.
Oilfield Services Segment | Results Summary
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(Dollars in millions) | |||||||||||
|
Oilfield services segment gross profit |
$ |
8.0 |
$ |
9.6 |
$ |
22.0 |
$ |
58.2 | |||
|
Oilfield services segment Adjusted EBITDA |
$ |
(3.5) |
$ |
(7.1) |
$ |
(20.6) |
$ |
(25.9) | |||
While U.S. land-based rig counts continued to improve sequentially during the fourth quarter 2016 and are up over 50% since the summer of 2016, on a year-over-year basis they were down 6%. The decline in land-based rig count caused gross profit to decline to $8.0 million, compared to $9.6 million in the fourth quarter 2015. However, Adjusted EBITDA improved during the quarter and for the full year based on the result of cost containment initiatives and lower unfavorable LCM inventory adjustments versus the prior year periods, respectively.
Partnership Liquidity
As of December 31, 2016, the Partnership had availability under its revolving credit facility of $360.8 million, based on a $453.1 million borrowing base, $82.1 million in outstanding standby letters of credit and $10.2 million in outstanding borrowings. In addition, the Partnership had $4.2 million of cash on hand as of December 31, 2016. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
The Partnership also paid down the remaining $19.6 million of the original $75.0 million related party note with The Heritage Group during the fourth quarter 2016.
2017 Outlook
For fiscal year 2017, the Partnership expects throughput to increase as it continues to optimize its use of heavy crude oil in conjunction with increasing the efficiency and utilization of its assets. Total capital spending for fiscal year 2017 is expected to range from $120 million and $140 million. Included in the forecast is maintenance capital expenditures, expected turnaround activity at the Superior and Great Falls refineries, a new crude oil flexibility project at the Superior refinery and other low cost growth initiatives.
The Partnership remains on schedule to achieve its $150 million to $200 million operations excellence initiative objectives by the end of 2018, with a projected $40 million to $60 million expected to be realized during fiscal year 2017.
2017 RFS Compliance Impact Forecast
In conjunction with the Partnership's ongoing compliance with the Renewable Fuel Standard ("RFS"), Calumet expects to purchase blending credits referred to as RINs. The Partnership records its outstanding RINs obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 128 million RINs for the full-year 2017, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency ("EPA") to any of the Partnership's fuel refineries at a later time. The increase over the Partnership's obligation for 2016 is due to recent production capacity expansion at the Partnership's Great Falls refinery. Calumet expects to be able to satisfy a portion of its 2017 gross RINs obligation through internal blending efforts.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||
|
2016 |
2015 |
2016 |
2015 | ||||
|
(In bpd) |
(In bpd) | ||||||
|
Total sales volume (1) |
140,521 |
124,577 |
140,180 |
126,216 | |||
|
Total feedstock runs (2) |
132,271 |
126,036 |
134,163 |
123,051 | |||
|
Facility production: (3) |
|||||||
|
Specialty products: |
|||||||
|
Lubricating oils |
15,373 |
14,420 |
14,697 |
13,325 | |||
|
Solvents |
6,901 |
6,661 |
7,427 |
7,942 | |||
|
Waxes |
1,728 |
1,360 |
1,571 |
1,460 | |||
|
Packaged and synthetic specialty products (4) |
2,092 |
1,644 |
2,074 |
1,584 | |||
|
Other |
1,559 |
1,415 |
1,553 |
1,355 | |||
|
Total |
27,653 |
25,500 |
27,322 |
25,666 | |||
|
Fuel products: |
|||||||
|
Gasoline |
39,719 |
40,424 |
37,713 |
37,691 | |||
|
Diesel |
33,670 |
32,581 |
34,808 |
30,204 | |||
|
Jet fuel |
5,806 |
5,681 |
5,306 |
5,157 | |||
|
Asphalt, heavy fuel oils and other |
26,838 |
22,013 |
29,780 |
24,077 | |||
|
Total |
106,033 |
100,699 |
107,607 |
97,129 | |||
|
Total facility production (3) |
133,686 |
126,199 |
134,929 |
122,795 | |||
|
(1) Total sales volume includes sales from the production at our facilities and certain third-party facilities pursuant to supply and/or | |||||||
|
The increase in total sales volume for the three months ended December 31, 2016, compared to same period in 2015 is due primarily | |||||||
|
The increase in total sales volume in 2016 compared to 2015 is due primarily to increased sales volume of lubricating oils, diesel | |||||||
|
(2) Total feedstock runs represent the barrels per day of crude oil and other feedstocks processed at our facilities and at certain third- | |||||||
|
The increase in total feedstock runs for the three months ended December 31, 2016, compared to same period in 2015 is due | |||||||
|
The increase in total feedstock runs in 2016 compared to 2015 is due primarily to increased feedstock runs at the Great Falls refinery | |||||||
|
(3) Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil | |||||||
|
The increases in total facility production in 2016 over 2015, as well as quarter over quarter, are due primarily to the operational | |||||||
|
(4) Represents production of packaged and synthetic specialty products, including the products from the Royal Purple, Bel-Ray, | |||||||
Derivatives Summary
The following table summarizes the derivative activity reflected in the consolidated statements of operations and consolidated statements of cash flows for the three months and years ended December 31, 2016 and 2015:
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(In millions) |
(In millions) | ||||||||||
|
Derivative gain reflected in sales |
$ |
14.1 |
$ |
41.7 |
$ |
59.7 |
$ |
179.4 | |||
|
Derivative loss reflected in cost of sales |
(16.9) |
(40.2) |
(53.3) |
(167.3) | |||||||
|
Derivative gain (loss) reflected in gross profit |
$ |
(2.8) |
$ |
1.5 |
$ |
6.4 |
$ |
12.1 | |||
|
Realized gain (loss) on derivative instruments |
$ |
(3.9) |
$ |
15.2 |
$ |
(24.0) |
$ |
8.1 | |||
|
Unrealized gain (loss) on derivative instruments |
(3.6) |
(11.8) |
19.9 |
(39.5) | |||||||
|
Derivative gain reflected in interest expense |
0.1 |
0.1 |
0.4 |
0.5 | |||||||
|
Total derivative gain (loss) reflected in the consolidated |
$ |
(10.2) |
$ |
5.0 |
$ |
2.7 |
$ |
(18.8) | |||
|
Total gain (loss) on commodity derivative settlements |
$ |
(3.9) |
$ |
15.1 |
$ |
(24.0) |
$ |
10.2 | |||
Webcast Information
A conference call is scheduled for 9:00 a.m. ET on February 24, 2017 to discuss the financial and operational results for the fourth quarter and full year 2016. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 62577692. 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 section.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures and (iv) expected benefits to the Partnership from the distribution suspension. 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 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 acquisitions. 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, fuels, other refined products and oilfield services; 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; 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 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; our ability to access the debt and equity markets; 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash provided by operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash provided by operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA and Distributable Cash Flow 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release reflect the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
The preliminary expected range for forward-looking non-GAAP Adjusted EBITDA contained in this press release is provided only on a non-GAAP basis, due to the inherent difficulty of calculating items that would be included in Net income (loss) on a GAAP basis. Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or market adjustments, gains and losses on disposal or impairment of assets, equity-based compensation, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on Calumet's Adjusted EBITDA and Calumet is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net loss, operating income (loss), net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash provided by operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except unit and per unit data) | |||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(Unaudited) |
(Unaudited) |
||||||||||
|
Sales |
$ |
946.9 |
$ |
898.0 |
$ |
3,599.4 |
$ |
4,212.8 | |||
|
Cost of sales |
866.4 |
866.1 |
3,191.1 |
3,618.2 | |||||||
|
Gross profit |
80.5 |
31.9 |
408.3 |
594.6 | |||||||
|
Operating costs and expenses: |
|||||||||||
|
Selling |
27.8 |
35.8 |
110.7 |
146.0 | |||||||
|
General and administrative |
30.0 |
32.0 |
110.6 |
135.5 | |||||||
|
Transportation |
42.8 |
45.4 |
169.2 |
175.5 | |||||||
|
Taxes other than income taxes |
5.4 |
3.6 |
20.1 |
17.7 | |||||||
|
Asset impairment |
2.3 |
— |
35.7 |
33.8 | |||||||
|
Other |
0.4 |
2.1 |
1.7 |
11.1 | |||||||
|
Operating income (loss) |
(28.2) |
(87.0) |
(39.7) |
75.0 | |||||||
|
Other income (expense): |
|||||||||||
|
Interest expense |
(44.0) |
(25.0) |
(161.7) |
(104.9) | |||||||
|
Debt extinguishment costs |
— |
— |
— |
(46.6) | |||||||
|
Realized gain (loss) on derivative instruments |
(3.9) |
15.2 |
(24.0) |
8.1 | |||||||
|
Unrealized gain (loss) on derivative instruments |
(3.6) |
(11.8) |
19.9 |
(39.5) | |||||||
|
Loss from unconsolidated affiliates |
(0.2) |
(14.3) |
(18.7) |
(61.5) | |||||||
|
Loss on sale of unconsolidated affiliates |
— |
— |
(113.4) |
— | |||||||
|
Other |
(0.3) |
(0.5) |
1.3 |
1.6 | |||||||
|
Total other expense |
(52.0) |
(36.4) |
(296.6) |
(242.8) | |||||||
|
Net loss before income taxes |
(80.2) |
(123.4) |
(336.3) |
(167.8) | |||||||
|
Income tax benefit |
(0.6) |
(6.6) |
(7.7) |
(28.4) | |||||||
|
Net loss |
$ |
(79.6) |
$ |
(116.8) |
$ |
(328.6) |
$ |
(139.4) | |||
|
Allocation of net loss: |
|||||||||||
|
Net loss |
$ |
(79.6) |
$ |
(116.8) |
$ |
(328.6) |
$ |
(139.4) | |||
|
Less: |
|||||||||||
|
General partner's interest in net loss |
(1.6) |
(2.4) |
(6.6) |
(2.8) | |||||||
|
General partner's incentive distribution rights |
— |
4.2 |
— |
16.8 | |||||||
|
Net loss available to limited partners |
$ |
(78.0) |
$ |
(118.6) |
$ |
(322.0) |
$ |
(153.4) | |||
|
Weighted average limited partner units outstanding: |
|||||||||||
|
Basic and diluted |
77,351,593 |
76,124,133 |
77,043,935 |
74,896,096 | |||||||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(1.01) |
$ |
(1.56) |
$ |
(4.18) |
$ |
(2.05) | |||
|
Cash distributions declared per limited partner unit |
$ |
— |
$ |
0.685 |
$ |
0.685 |
$ |
2.74 | |||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONSOLIDATED BALANCE SHEETS (In millions) | |||||
|
December 31, | |||||
|
2016 |
2015 | ||||
|
ASSETS |
(Unaudited) |
||||
|
Current assets: |
|||||
|
Cash and cash equivalents |
$ |
4.2 |
$ |
5.6 | |
|
Accounts receivable, net |
238.7 |
210.7 | |||
|
Inventories |
386.2 |
384.4 | |||
|
Derivative assets |
0.8 |
— | |||
|
Prepaid expenses and other current assets |
11.0 |
8.3 | |||
|
Total current assets |
640.9 |
609.0 | |||
|
Property, plant and equipment, net |
1,678.0 |
1,719.2 | |||
|
Investment in unconsolidated affiliates |
10.3 |
126.0 | |||
|
Goodwill |
177.2 |
212.0 | |||
|
Other intangible assets, net |
178.5 |
214.1 | |||
|
Other noncurrent assets, net |
40.3 |
64.4 | |||
|
Total assets |
$ |
2,725.2 |
$ |
2,944.7 | |
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||
|
Current liabilities: |
|||||
|
Accounts payable |
$ |
295.5 |
$ |
316.6 | |
|
Accrued interest payable |
52.5 |
31.1 | |||
|
Accrued salaries, wages and benefits |
11.5 |
32.9 | |||
|
Other taxes payable |
20.8 |
17.5 | |||
|
Other current liabilities |
99.6 |
119.0 | |||
|
Current portion of long-term debt |
3.5 |
1.7 | |||
|
Note payable — related party |
— |
73.5 | |||
|
Derivative liabilities |
14.8 |
33.9 | |||
|
Total current liabilities |
498.2 |
626.2 | |||
|
Noncurrent deferred income taxes |
2.3 |
2.5 | |||
|
Pension and postretirement benefit obligations |
11.3 |
13.0 | |||
|
Other long-term liabilities |
1.0 |
0.9 | |||
|
Long-term debt, less current portion |
1,993.7 |
1,698.2 | |||
|
Total liabilities |
2,506.5 |
2,340.8 | |||
|
Commitments and contingencies |
|||||
|
Partners' capital: |
|||||
|
Partners' capital |
227.0 |
605.5 | |||
|
Accumulated other comprehensive loss |
(8.3) |
(1.6) | |||
|
Total partners' capital |
218.7 |
603.9 | |||
|
Total liabilities and partners' capital |
$ |
2,725.2 |
$ |
2,944.7 | |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) | |||||
|
Year Ended December 31, | |||||
|
2016 |
2015 | ||||
|
(Unaudited) |
|||||
|
Operating activities |
|||||
|
Net loss |
$ |
(328.6) |
$ |
(139.4) | |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||
|
Depreciation and amortization |
171.1 |
145.4 | |||
|
Amortization of turnaround costs |
33.2 |
29.0 | |||
|
Non-cash interest expense |
9.6 |
6.6 | |||
|
Non-cash debt extinguishment costs |
— |
9.1 | |||
|
Provision for doubtful accounts |
0.4 |
1.1 | |||
|
Unrealized (gain) loss on derivative instruments |
(19.9) |
39.5 | |||
|
Asset impairment |
35.7 |
33.8 | |||
|
Loss on disposal of fixed assets |
1.0 |
2.9 | |||
|
Deferred income tax expense |
(0.7) |
(28.5) | |||
|
Non-cash equity based compensation |
5.6 |
9.8 | |||
|
Lower of cost or market inventory adjustment |
(39.2) |
81.8 | |||
|
Loss from unconsolidated affiliates |
18.7 |
61.5 | |||
|
Loss on sale of unconsolidated affiliates |
113.4 |
— | |||
|
Other non-cash activities |
4.7 |
5.9 | |||
|
Changes in assets and liabilities: |
|||||
|
Accounts receivable |
(28.4) |
138.0 | |||
|
Inventories |
49.6 |
47.3 | |||
|
Prepaid expenses and other current assets |
(3.5) |
3.4 | |||
|
Derivative activity |
(19.0) |
(7.0) | |||
|
Turnaround costs |
(8.7) |
(19.3) | |||
|
Other assets |
(0.6) |
— | |||
|
Accounts payable |
21.4 |
(119.9) | |||
|
Accrued interest payable |
21.4 |
(6.5) | |||
|
Accrued salaries, wages and benefits |
(17.9) |
10.2 | |||
|
Other taxes payable |
3.4 |
0.2 | |||
|
Other liabilities |
(16.6) |
73.8 | |||
|
Pension and postretirement benefit obligations |
(2.0) |
(2.3) | |||
|
Net cash provided by operating activities |
4.1 |
376.4 | |||
|
Investing activities |
|||||
|
Additions to property, plant and equipment |
(139.4) |
(339.3) | |||
|
Investment in unconsolidated affiliates |
(45.7) |
(50.2) | |||
|
Proceeds from sale of unconsolidated affiliates |
29.0 |
— | |||
|
Proceeds from sale of property, plant and equipment |
1.9 |
0.5 | |||
|
Net cash used in investing activities |
(154.2) |
(389.0) | |||
|
Financing activities |
|||||
|
Proceeds from borrowings — revolving credit facility |
1,187.1 |
1,390.0 | |||
|
Repayments of borrowings — revolving credit facility |
(1,287.9) |
(1,429.8) | |||
|
Proceeds from senior notes offering |
393.1 |
322.6 | |||
|
Repayments of borrowings — senior notes |
— |
(275.0) | |||
|
Proceeds from borrowings — related party |
— |
75.0 | |||
|
Repayments of borrowings — related party note |
(75.0) |
— | |||
|
Payments on capital lease obligations |
(8.5) |
(8.0) | |||
|
Proceeds from other financing obligations |
10.3 |
1.1 | |||
|
Proceeds from public offering of common units, net |
— |
164.1 | |||
|
Debt issuance costs |
(11.4) |
(5.6) | |||
|
Contributions from Calumet GP, LLC |
0.2 |
3.5 | |||
|
Common units repurchased and taxes paid for phantom unit grants |
(1.8) |
(3.6) | |||
|
Distributions to partners |
(57.4) |
(224.6) | |||
|
Net cash provided by financing activities |
148.7 |
9.7 | |||
|
Net decrease in cash and cash equivalents |
(1.4) |
(2.9) | |||
|
Cash and cash equivalents at beginning of period |
5.6 |
8.5 | |||
|
Cash and cash equivalents at end of period |
$ |
4.2 |
$ |
5.6 | |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW (In millions) | |||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Reconciliation of Net loss to EBITDA, Adjusted EBITDA |
(Unaudited) | ||||||||||
|
Net loss |
$ |
(79.6) |
$ |
(116.8) |
$ |
(328.6) |
$ |
(139.4) | |||
|
Add: |
|||||||||||
|
Interest expense |
44.0 |
25.0 |
161.7 |
104.9 | |||||||
|
Debt extinguishment costs |
— |
— |
— |
46.6 | |||||||
|
Depreciation and amortization |
44.0 |
38.0 |
171.1 |
145.4 | |||||||
|
Income tax benefit |
(0.6) |
(6.6) |
(7.7) |
(28.4) | |||||||
|
EBITDA |
$ |
7.8 |
$ |
(60.4) |
$ |
(3.5) |
$ |
129.1 | |||
|
Add: |
|||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
3.6 |
$ |
11.8 |
$ |
(19.9) |
$ |
39.5 | |||
|
Realized gain (loss) on derivatives, not included in net |
2.8 |
(1.6) |
(6.4) |
(10.0) | |||||||
|
Amortization of turnaround costs |
7.9 |
9.6 |
33.2 |
29.0 | |||||||
|
Impairment charges (1) |
2.5 |
— |
35.9 |
58.1 | |||||||
|
Loss on sale of unconsolidated affiliate |
— |
— |
113.9 |
— | |||||||
|
Non-cash equity-based compensation and other non- |
3.1 |
3.0 |
5.0 |
12.0 | |||||||
|
Adjusted EBITDA |
$ |
27.7 |
$ |
(37.6) |
$ |
158.2 |
$ |
257.7 | |||
|
Less: |
|||||||||||
|
Replacement and environmental capital expenditures (2) |
$ |
9.4 |
$ |
10.6 |
$ |
29.3 |
$ |
44.2 | |||
|
Cash interest expense (3) |
41.6 |
23.5 |
152.1 |
98.2 | |||||||
|
Turnaround costs |
— |
4.1 |
8.7 |
19.3 | |||||||
|
Loss from unconsolidated affiliates |
— |
(14.3) |
(18.5) |
(37.5) | |||||||
|
Income tax benefit |
(0.6) |
(6.6) |
(7.7) |
(28.4) | |||||||
|
Distributable Cash Flow |
$ |
(22.7) |
$ |
(54.9) |
$ |
(5.7) |
$ |
161.9 | |||
|
(1) Impairment charges for the full year 2016 include $34.8 million of goodwill impairment charges related to the specialty and fuel | |||||||||||
|
Impairment charges for the full year 2015 include a $33.8 million goodwill impairment charge related to the oilfield services | |||||||||||
|
(2) Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce | |||||||||||
|
(3) Represents consolidated interest expense less non-cash interest expense. | |||||||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED BY OPERATING ACTIVITIES (In millions) | ||||||
|
Year Ended December 31, | ||||||
|
2016 |
2015 | |||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash |
(Unaudited) | |||||
|
Distributable Cash Flow |
$ |
(5.7) |
$ |
161.9 | ||
|
Add: |
||||||
|
Replacement and environmental capital expenditures (1) |
29.3 |
44.2 | ||||
|
Cash interest expense (2) |
152.1 |
98.2 | ||||
|
Turnaround costs |
8.7 |
19.3 | ||||
|
Loss from unconsolidated affiliates |
(18.5) |
(37.5) | ||||
|
Income tax benefit |
(7.7) |
(28.4) | ||||
|
Adjusted EBITDA |
$ |
158.2 |
$ |
257.7 | ||
|
Less: |
||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(19.9) |
$ |
39.5 | ||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
(6.4) |
(10.0) | ||||
|
Amortization of turnaround costs |
33.2 |
29.0 | ||||
|
Impairment charges (3) |
35.9 |
58.1 | ||||
|
Loss on sale of unconsolidated affiliate |
113.9 |
— | ||||
|
Non-cash equity-based compensation and other non-cash items |
5.0 |
12.0 | ||||
|
EBITDA |
$ |
(3.5) |
$ |
129.1 | ||
|
Add: |
||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(19.9) |
$ |
39.5 | ||
|
Cash interest expense (2) |
(152.1) |
(98.2) | ||||
|
Asset impairment |
35.7 |
33.8 | ||||
|
Lower of cost or market inventory adjustment |
(39.2) |
81.8 | ||||
|
Non-cash equity-based compensation |
5.6 |
9.8 | ||||
|
Deferred income tax benefit |
(0.7) |
(28.5) | ||||
|
Loss from unconsolidated affiliates |
18.7 |
61.5 | ||||
|
Loss on sale of unconsolidated affiliates |
113.4 |
— | ||||
|
Amortization of turnaround costs |
33.2 |
29.0 | ||||
|
Income tax benefit |
7.7 |
28.4 | ||||
|
Provision for doubtful accounts |
0.4 |
1.1 | ||||
|
Debt extinguishment costs |
— |
(37.5) | ||||
|
Changes in assets and liabilities: |
||||||
|
Accounts receivable |
(28.4) |
138.0 | ||||
|
Inventories |
49.6 |
47.3 | ||||
|
Prepaid expenses and other current assets |
(3.5) |
3.4 | ||||
|
Turnaround costs |
(8.7) |
(19.3) | ||||
|
Derivative activity |
(19.0) |
(7.0) | ||||
|
Other assets |
(0.6) |
— | ||||
|
Accounts payable |
21.4 |
(119.9) | ||||
|
Accrued interest payable |
21.4 |
(6.5) | ||||
|
Other current liabilities |
(31.1) |
84.2 | ||||
|
Other, including changes in noncurrent liabilities |
3.7 |
6.4 | ||||
|
Net cash provided by operating activities |
$ |
4.1 |
$ |
376.4 | ||
|
(1) Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce | ||||||
|
(2) Represents consolidated interest expense less non-cash interest expense. | ||||||
|
(3) Impairment charges for the full year 2016 include $34.8 million of goodwill impairment charges related to the specialty and fuel | ||||||
|
Impairment charges for the full year 2015 include a $33.8 million goodwill impairment charge related to the oilfield services | ||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS (In millions) | |||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
Reconciliation of Segment Adjusted EBITDA to Net loss: |
(Unaudited) | ||||||||||
|
Segment Adjusted EBITDA: |
|||||||||||
|
Specialty products Adjusted EBITDA |
$ |
28.0 |
$ |
29.3 |
$ |
188.9 |
$ |
201.7 | |||
|
Fuel products Adjusted EBITDA |
3.2 |
(59.8) |
(10.1) |
81.9 | |||||||
|
Oilfield services Adjusted EBITDA |
(3.5) |
(7.1) |
(20.6) |
(25.9) | |||||||
|
Total segment Adjusted EBITDA |
$ |
27.7 |
$ |
(37.6) |
$ |
158.2 |
$ |
257.7 | |||
|
Less: |
|||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
3.6 |
$ |
11.8 |
$ |
(19.9) |
$ |
39.5 | |||
|
Realized gain (loss) on derivatives, not included in net |
2.8 |
(1.6) |
(6.4) |
(10.0) | |||||||
|
Amortization of turnaround costs |
7.9 |
9.6 |
33.2 |
29.0 | |||||||
|
Impairment charges (1) |
2.5 |
— |
35.9 |
58.1 | |||||||
|
Loss on sale of unconsolidated affiliate |
— |
— |
113.9 |
— | |||||||
|
Non-cash equity-based compensation and other non-cash items |
3.1 |
3.0 |
5.0 |
12.0 | |||||||
|
EBITDA |
$ |
7.8 |
$ |
(60.4) |
$ |
(3.5) |
$ |
129.1 | |||
|
Less: |
|||||||||||
|
Interest expense |
$ |
44.0 |
$ |
25.0 |
$ |
161.7 |
$ |
104.9 | |||
|
Debt extinguishment costs |
— |
— |
— |
46.6 | |||||||
|
Depreciation and amortization |
44.0 |
38.0 |
171.1 |
145.4 | |||||||
|
Income tax benefit |
(0.6) |
(6.6) |
(7.7) |
(28.4) | |||||||
|
Net loss |
$ |
(79.6) |
$ |
(116.8) |
$ |
(328.6) |
$ |
(139.4) | |||
|
(1) |
Impairment charges for the full year 2016 include $34.8 million of goodwill impairment charges related to the specialty and fuel products segments, $0.9 million of long-lived assets impairment charges related to the specialty and fuel products segments, and $0.2 million impairment charge related to one of our equity method investments. |
|
Impairment charges for the full year 2015 include a $33.8 million goodwill impairment charge related to the oilfield services segment and $24.3 million |
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
SELECTED COMMODITY DERIVATIVE INSTRUMENTS
As of December 31, 2016
Fuel Products Segment
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Western Canadian Select ("WCS") and New York Mercantile Exchange West Texas Intermediate ("NYMEX WTI"). The following table provides a summary of crude oil basis swap contracts as of December 31, 2016, in the Partnership's fuel products segment:
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average | |||
|
First Quarter 2017 |
630,000 |
7,000 |
$ |
(13.22) | ||
|
Second Quarter 2017 |
637,000 |
7,000 |
$ |
(13.22) | ||
|
Third Quarter 2017 |
644,000 |
7,000 |
$ |
(13.22) | ||
|
Fourth Quarter 2017 |
644,000 |
7,000 |
$ |
(13.22) | ||
|
Total |
2,555,000 |
|||||
|
Average differential |
$ |
(13.22) | ||||
Calumet has entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. The following table provides a summary of crude oil percentage basis swap contracts related to crude oil purchases as of December 31, 2016, in the Partnership's fuel products segment:
|
Crude Oil Percentage Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Fixed Percentage | |||
|
First Quarter 2017 |
270,000 |
3,000 |
72.3 |
% | ||
|
Second Quarter 2017 |
273,000 |
3,000 |
72.3 |
% | ||
|
Third Quarter 2017 |
276,000 |
3,000 |
72.3 |
% | ||
|
Fourth Quarter 2017 |
276,000 |
3,000 |
72.3 |
% | ||
|
Total |
1,095,000 |
|||||
|
Average percentage |
72.3 |
% | ||||
The following table provides a summary of the implied crack spreads for Calumet's gasoline crack spread swaps, diesel crack spread swaps and 2/1/1 crack spread swaps on a combined basis as of December 31, 2016 in the Partnership's fuel products segment:
|
Crack Spread Swap Contracts by Expiration Dates |
Barrels |
BPD |
Average | |||
|
First Quarter 2017 |
1,770,000 |
19,667 |
$ |
11.93 | ||
|
Total |
1,770,000 |
|||||
|
Average price |
$ |
11.93 | ||||
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/24/2017Calumet Specialty Products Partners, L.P. To Release Fourth Quarter and Full Year 2016 Results on February 24
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Feb. 3, 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 fuel products, today announced that it will report results for the fourth quarter and full year 2016 on February 24, 2017 before the market opens. A conference call is scheduled for 9:00 a.m. ET on February 24, 2017 to discuss the financial and operational results for the fourth quarter and full year 2016.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by dialing (866) 584-9671 and entering the passcode 62577692. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/3/20171/5/2017 - Calumet Specialty Products Partners, L.P. Names D. West Griffin As EVP & Chief Financial Officer
Calumet Specialty Products Partners, L.P. Names D. West Griffin As EVP & Chief Financial Officer
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Jan. 5, 2017 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Company", "Partnership" or "Calumet") a leading independent producer of specialty hydrocarbon and fuels products, has named longtime energy industry professional D. West Griffin as the Partnership's Executive Vice President & Chief Financial Officer (CFO), effective today. Mr. Griffin brings with him over 30 years of industry experience where he has served in executive management roles for a number of high profile energy-related corporations. As CFO, Mr. Griffin will be responsible for executing Calumet's ongoing deleveraging strategy, as well as all financing and capital markets activities. He will also be charged with managing the Company's balance sheet and improving upon its financial planning capabilities.
Mr. Griffin joins Calumet from Energy XXI, a publicly listed energy E&P company where he was one of the three founders and also served as Chief Financial Officer from 2005 to 2014. Throughout his tenure with Energy XXI, Mr. Griffin employed his extensive background in debt refinancing and capital markets solutions to oversee the refinancing of the firm's capital structure and numerous growth-oriented acquisitions. Prior to joining Energy XXI, Mr. Griffin served as CFO at Alon USA, a refining and marketing company, and as CFO of InterGen North America, a joint venture between RDS Shell and Bechtel. Mr. Griffin began his career as an investment banker, working for both BT Securities and UBS.
Timothy Go, Chief Executive Officer commented, "West's deep energy experience and history of navigating numerous energy cycles, makes him a perfect fit for Calumet at this time. West's significant capital markets and corporate transformation background will help drive Calumet's strategy to both delever the business in the near-term, and to grow the Partnership over the long-term, as we reposition Calumet as the premier producer of specialty petroleum products. We are very excited to welcome West to our growing leadership team and look forward to working with him."
Additionally, the Company also announced that Patrick Murray, the Company's former Chief Financial Officer, will serve in the new position of VP & Chief Accounting Officer (CAO) at Calumet. This new leadership position will be responsible for further developing key organizational functions including all accounting, IT, and external reporting.
Go concluded, "I would like to thank Pat for his continued commitment to the Partnership. He has served Calumet for over 18 years, and as CFO he has made significant contributions for the betterment of this Company, from taking Calumet public in 2006, to helping to fund Calumet's growth through capital raising initiatives, and closing on some of the Company's most successful M&A initiatives. Pat has been an integral part of my management team and has been a steady hand through this corporate transformation. He will continue to be a vital asset for us and we are glad to have his experience and foresight in addressing our evolving needs as a business."
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
1/5/2017Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Dec. 2, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will participate in the 15th Annual Wells Fargo Securities Pipeline, MLP and Utility Symposium in New York City, on Wednesday December 7, 2016.
Calumet's latest investor presentation will be provided at the conference. Prior to Calumet's attendance at the listed conference, the Partnership will post an electronic copy of the presentation it intends to use in the "Investor Relations" section of the Partnership's corporate website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
12/2/2016Calumet Specialty Products Partners, L.P. Reports Third Quarter 2016 Results
Source: PR Newswire
INDIANAPOLIS, Nov. 3, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of petroleum-based specialty products, today reported results for the quarter ended September 30, 2016, as follows:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||
|
(Dollars in millions, except per unit data) | |||||||||||
|
Net loss |
$ |
(33.4) |
$ |
(48.9) |
$ |
(249.0) |
$ |
(22.6) | |||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.42) |
$ |
(0.68) |
$ |
(3.18) |
$ |
(0.47) | |||
|
Adjusted EBITDA |
$ |
53.9 |
$ |
75.4 |
$ |
130.5 |
$ |
295.3 | |||
The Partnership's $33.4 million net loss for the third quarter 2016 includes, but is not limited to, the impact of two items: (1) an unfavorable lower of cost or market ("LCM") inventory adjustment of $11.0 million and (2) net expense of $10.1 million related to the Partnership's ongoing compliance with the U.S. Renewable Fuel Standard ("RFS"). The Partnership's Adjusted EBITDA of $53.9 million for the third quarter 2016 includes, but is not limited to, the impact of two items: (1) an unfavorable LCM inventory adjustment of $8.4 million and (2) net expense of $10.1 million related to the Partnership's ongoing compliance with RFS.
Management Commentary
"During the third quarter we continued to make solid progress against our strategic priorities, which helped us drive positive cash flow from operations this quarter," stated Tim Go, Chief Executive Officer of Calumet. "Through the first three quarters of fiscal 2016, our operations excellence initiatives to reduce cost and improve margin capture have driven an estimated $71.0 million of incremental Adjusted EBITDA and we are proud to have surpassed the mid-point of our stated $60.0 million to $75.0 million 2016 goal in only three quarters. Our integrated business teams have been diligent and continue to identify creative ways for the Partnership to drive costs out of the business, improve our margin capture and transform the organization for long-term success. We remain truly excited at the cultural shift that is taking hold within the organization and I want to thank all of our employees for their contribution to our transformation."
"As of September 30, 2016, we had approximately $388.0 million in cash and availability on our revolving credit facility. Although this was a decline compared to our second quarter as we reduced debt through the $20.9 million repayment of the outstanding related party notes, we continue to maintain strong liquidity that will provide the business with the optionality it needs to continue to evolve in the future."
"Our specialty products segment continued its stable contributions to the business and continues to deliver consistent results. On the fuels side of the business, our asphalt volumes hit record levels and local market premiums remained strong; however, lower year-over-year benchmark crack spreads and higher RFS expense impacted margin capture. In terms of our oilfield services segment, we were excited to see a few promising recent trends as U.S. land-based rig counts have continued to gradually improve since late May. In fact, U.S. land-based rig counts increased approximately 14% on average during the third quarter compared to the second quarter, but the rigs we service improved 32% on average sequentially. While the segment's Adjusted EBITDA contribution was negative this period, that loss was lower than we witnessed over the last three quarters and we saw incremental progress during each month of the quarter as cost controls and improved performance started to take hold."
Go concluded, "Looking ahead to the fourth quarter 2016, we expect to see typical seasonality across our businesses. We are encouraged that the price increases from the end of the second quarter within our specialty products segment have generally held firm, which should allow us to at least partially offset some of the recent increase in crude oil pricing since that time. Within our fuel products area, we anticipate that normal winter patterns will likely pressure refining economics during the period. We also expect to see our oilfield services segment continue to leverage its solid position in the Permian basin and continue its healing process. Lastly, our operational excellence teams will remain diligent in their pursuit of new ways to optimize our platform as they have recently turned their focus to driving improvements in our transportation and procurement functions across the organization."
Specialty Products Segment | Results Summary
|
Three Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Specialty products segment gross profit |
$ |
81.0 |
$ |
89.0 |
|||
|
Specialty products segment Adjusted EBITDA |
$ |
43.4 |
$ |
47.6 |
|||
|
Specialty products segment gross profit per barrel |
$ |
34.99 |
$ |
38.46 |
|||
Specialty products segment gross profit in the period was primarily impacted by a rise in crude oil prices which outpaced adjustments in product pricing and turnaround activities at two facilities, which was partially offset by a decrease in the unfavorable LCM inventory adjustment compared to last year's comparable quarter. Third quarter 2016 results were impacted by an $8.7 million unfavorable LCM inventory adjustment.
Fuel Products Segment | Results Summary
|
Three Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Fuel products segment gross profit |
$ |
22.0 |
$ |
58.2 |
|||
|
Fuel products segment Adjusted EBITDA |
$ |
13.8 |
$ |
28.3 |
|||
|
Fuel products segment gross profit per barrel (including hedging activities) |
$ |
2.06 |
$ |
5.80 |
|||
|
Fuel products segment gross profit per barrel (excluding hedging activities) |
$ |
1.85 |
$ |
5.72 |
|||
During the third quarter 2016, strong market premiums on fuel products sold in the Partnership's local refining markets and a decrease in the unfavorable LCM inventory adjustment were more than offset by an approximately 35% year-over-year decline in the benchmark Gulf Coast 2/1/1 crack spread and higher RFS compliance costs. Total fuel products volumes increased by 6.6% year-over-year, primarily as a result of the Great Falls refinery expansion.
Oilfield Services Segment | Results Summary
|
Three Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
(Dollars in millions) | |||||||
|
Oilfield services segment gross profit |
$ |
7.3 |
$ |
17.6 |
|||
|
Oilfield services segment Adjusted EBITDA |
$ |
(3.3) |
$ |
(0.5) |
|||
While the U.S. land-based rig count declined more than 45% on a year-over-year basis, it improved by 14% on average compared to second quarter 2016. In contrast, Calumet's rig count increased roughly 32% on average during the quarter, which drove a 60% increase in sequential revenue compared to second quarter 2016. The segment's gross profit and Adjusted EBITDA both declined year-over-year but were significant improvements over the first two quarters of 2016.
Partnership Liquidity
As of September 30, 2016, the Partnership had availability under its revolving credit facility of $370.4 million, based on a $483.0 million borrowing base, $112.5 million in outstanding standby letters of credit and $0.1 million in outstanding borrowings. In addition, the Partnership had $17.8 million of cash on hand as of September 30, 2016. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2016 Capital Spending Forecast
Through the first three quarters of 2016, total capital spending was $97.9 million, down 71% compared to the same period in 2015. For the full year 2016, the Partnership now anticipates total capital expenditures to come in at the lower end of its previous guidance and has updated its 2016 capital spending range to between $125.0 million and $135.0 million.
Full-Year 2016 RFS Compliance Impact Forecast
In conjunction with the Partnership's ongoing compliance with the RFS, Calumet expects to purchase blending credits referred to as Renewable Identification Numbers ("RINs"). The Partnership records its outstanding RINs obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation will be up to 120 million RINs for the full year 2016.
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
(In bpd) |
(In bpd) | |||||||||||||||
|
Total sales volume (1) |
141,457 |
134,283 |
140,066 |
126,769 |
||||||||||||
|
Total feedstock runs (2) |
132,911 |
121,440 |
134,798 |
122,045 |
||||||||||||
|
Facility production: (3) |
||||||||||||||||
|
Specialty products: |
||||||||||||||||
|
Lubricating oils |
13,847 |
11,777 |
14,470 |
12,956 |
||||||||||||
|
Solvents |
7,636 |
6,913 |
7,604 |
8,373 |
||||||||||||
|
Waxes |
1,637 |
1,267 |
1,518 |
1,494 |
||||||||||||
|
Packaged and synthetic specialty products (4) |
1,972 |
1,595 |
2,068 |
1,564 |
||||||||||||
|
Other |
1,942 |
1,653 |
1,551 |
1,335 |
||||||||||||
|
Total |
27,034 |
23,205 |
27,211 |
25,722 |
||||||||||||
|
Fuel products: |
||||||||||||||||
|
Gasoline |
35,141 |
36,147 |
37,039 |
36,770 |
||||||||||||
|
Diesel |
35,166 |
29,347 |
35,190 |
29,403 |
||||||||||||
|
Jet fuel |
5,423 |
4,849 |
5,139 |
4,980 |
||||||||||||
|
Asphalt, heavy fuel oils and other |
31,119 |
24,725 |
30,768 |
24,772 |
||||||||||||
|
Total |
106,849 |
95,068 |
108,136 |
95,925 |
||||||||||||
|
Total facility production (3) |
133,883 |
118,273 |
135,347 |
121,647 |
||||||||||||
|
(1) |
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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. | |||||||||||||||
|
The increase in total sales volume for the three months ended September 30, 2016, as compared to the same period in 2015, is due primarily to increased sales volumes of fuel products including diesel and asphalt as a result of increased production at the Great Falls refinery from the expansion project completed in the first quarter 2016 and market conditions. | ||||||||||||||||
|
The increase in total sales volume for the nine months ended September 30, 2016, as compared to the same period in 2015, is due primarily to increased sales volume of lubricating oils, diesel and asphalt as a result of market conditions and increased production at the Great Falls refinery from the expansion project completed in the first quarter 2016. | ||||||||||||||||
|
(2) |
Total feedstock runs represent the bpd of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. | |||||||||||||||
|
The increase in total feedstock runs for the three months ended September 30, 2016, as compared to the same period in 2015, is due primarily to increased feedstock runs at the Great Falls refinery from the expansion project completed in the first quarter 2016 and improved operational reliability, partially offset by scheduled turnaround activity at two of our facilities. | ||||||||||||||||
|
The increase in total feedstock runs for the nine months ended September 30, 2016, as compared to the same period in 2015, is due primarily to increased feedstock runs at the Great Falls refinery from the expansion project completed in first quarter 2016 and improved operational reliability, partially offset by decreased feedstock runs related to the production of solvents as a result of market conditions. | ||||||||||||||||
|
(3) |
Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. | |||||||||||||||
|
The change in total facility production for the three and nine months ended September 30, 2016, as compared to the same periods in 2015, is due primarily to the operational items discussed above in footnote 2. | ||||||||||||||||
|
(4) |
Packaged and synthetic specialty products include production at the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. | |||||||||||||||
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and nine months ended September 30, 2016 and 2015:
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In millions) |
(In millions) | ||||||||||||||
|
Derivative gain reflected in sales |
$ |
14.5 |
$ |
54.4 |
$ |
45.6 |
$ |
137.7 |
|||||||
|
Derivative loss reflected in cost of sales |
(9.7) |
(53.6) |
(36.4) |
(127.1) |
|||||||||||
|
Derivative gain reflected in gross profit |
$ |
4.8 |
$ |
0.8 |
$ |
9.2 |
$ |
10.6 |
|||||||
|
Realized loss on derivative instruments |
$ |
(1.8) |
$ |
(2.0) |
$ |
(20.1) |
$ |
(7.1) |
|||||||
|
Unrealized gain (loss) on derivative instruments |
(4.9) |
(5.0) |
23.5 |
(27.7) |
|||||||||||
|
Derivative gain reflected in interest expense |
0.1 |
0.1 |
0.3 |
0.4 |
|||||||||||
|
Total derivative gain (loss) reflected in the unaudited |
$ |
(1.8) |
$ |
(6.1) |
$ |
12.9 |
$ |
(23.8) |
|||||||
|
Total loss on commodity derivative settlements |
$ |
(1.8) |
$ |
(3.1) |
$ |
(20.1) |
$ |
(4.9) |
|||||||
Webcast Information
A conference call is scheduled for 1:00 p.m. ET on November 3, 2016, to discuss the financial and operational results for the third quarter 2016. 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 http://www.calumetspecialty.com. Interested parties may also participate in the call by calling (866) 584-9671 and entering the passcode 98760854. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures and (iv) expected benefits to the Partnership from the distribution suspension. 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 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 acquisitions. 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, fuels, other refined products and oilfield services; 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; 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 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; our ability to access the debt and equity markets; 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash provided by (used in) operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash provided by (used in) operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA and Distributable Cash Flow 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit). Distributable Cash Flow is used by us, our investors and analysts to analyze our ability to pay distributions.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release reflect the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
The preliminary expected range for forward-looking non-GAAP Adjusted EBITDA contained in this press release is provided only on a non-GAAP basis, due to the inherent difficulty of calculating items that would be included in Net income (loss) on a GAAP basis. As a result, reconciliation of forward-looking non-GAAP Adjusted EBITDA to GAAP Net income (loss) is not available without unreasonable effort, and Calumet is unable to address the probable significance of information that is currently unavailable. It is expected that non-GAAP Adjusted EBITDA, when reported, will reflect the exclusion of, among other things, interest expense, depreciation and amortization, and income taxes.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net loss, operating income (loss), net cash provided by (used in) operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
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, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Sales |
$ |
966.6 |
$ |
1,140.0 |
$ |
2,652.5 |
$ |
3,314.8 |
|||||||
|
Cost of sales |
856.3 |
975.2 |
2,324.7 |
2,752.1 |
|||||||||||
|
Gross profit |
110.3 |
164.8 |
327.8 |
562.7 |
|||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
26.2 |
34.0 |
82.9 |
110.2 |
|||||||||||
|
General and administrative |
28.2 |
32.6 |
80.6 |
103.5 |
|||||||||||
|
Transportation |
42.2 |
45.8 |
126.4 |
130.1 |
|||||||||||
|
Taxes other than income taxes |
4.8 |
6.1 |
14.7 |
14.1 |
|||||||||||
|
Asset impairment |
— |
33.8 |
33.4 |
33.8 |
|||||||||||
|
Other |
(1.0) |
2.9 |
1.3 |
9.0 |
|||||||||||
|
Operating income (loss) |
9.9 |
9.6 |
(11.5) |
162.0 |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(44.6) |
(25.5) |
(117.7) |
(79.9) |
|||||||||||
|
Debt extinguishment costs |
— |
— |
— |
(46.6) |
|||||||||||
|
Realized loss on derivative instruments |
(1.8) |
(2.0) |
(20.1) |
(7.1) |
|||||||||||
|
Unrealized gain (loss) on derivative instruments |
(4.9) |
(5.0) |
23.5 |
(27.7) |
|||||||||||
|
Loss from unconsolidated affiliates |
(0.3) |
(34.5) |
(18.5) |
(47.2) |
|||||||||||
|
Loss on sale of unconsolidated affiliates |
— |
— |
(113.4) |
— |
|||||||||||
|
Other |
0.7 |
0.6 |
1.6 |
2.1 |
|||||||||||
|
Total other expense |
(50.9) |
(66.4) |
(244.6) |
(206.4) |
|||||||||||
|
Net loss before income taxes |
(41.0) |
(56.8) |
(256.1) |
(44.4) |
|||||||||||
|
Income tax benefit |
(7.6) |
(7.9) |
(7.1) |
(21.8) |
|||||||||||
|
Net loss |
$ |
(33.4) |
$ |
(48.9) |
$ |
(249.0) |
$ |
(22.6) |
|||||||
|
Allocation of net loss: |
|||||||||||||||
|
Net loss |
$ |
(33.4) |
$ |
(48.9) |
$ |
(249.0) |
$ |
(22.6) |
|||||||
|
Less: |
|||||||||||||||
|
General partner's interest in net loss |
(0.7) |
(0.9) |
(5.0) |
(0.4) |
|||||||||||
|
General partner's incentive distribution rights |
— |
4.2 |
— |
12.6 |
|||||||||||
|
Non-vested share based payments |
— |
— |
— |
— |
|||||||||||
|
Net loss available to limited partners |
$ |
(32.7) |
$ |
(52.2) |
$ |
(244.0) |
$ |
(34.8) |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic |
77,331,347 |
76,112,325 |
76,767,975 |
74,499,196 |
|||||||||||
|
Diluted |
77,331,347 |
76,112,325 |
76,767,975 |
74,499,196 |
|||||||||||
|
Limited partners' interest basic and diluted net loss per unit |
$ |
(0.42) |
$ |
(0.68) |
$ |
(3.18) |
$ |
(0.47) |
|||||||
|
Cash distributions declared per limited partner unit |
$ |
— |
$ |
0.685 |
$ |
0.685 |
$ |
2.055 |
|||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
(In millions) | |||||||
|
September 30, 2016 |
December 31, 2015 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
17.8 |
$ |
5.6 |
|||
|
Accounts receivable, net |
280.1 |
210.7 |
|||||
|
Inventories |
409.9 |
384.4 |
|||||
|
Derivative assets |
0.7 |
— |
|||||
|
Prepaid expenses and other current assets |
15.8 |
8.3 |
|||||
|
Total current assets |
724.3 |
609.0 |
|||||
|
Property, plant and equipment, net |
1,695.4 |
1,719.2 |
|||||
|
Investment in unconsolidated affiliates |
5.8 |
126.0 |
|||||
|
Goodwill |
178.6 |
212.0 |
|||||
|
Other intangible assets, net |
187.8 |
214.1 |
|||||
|
Other noncurrent assets, net |
48.2 |
64.4 |
|||||
|
Total assets |
$ |
2,840.1 |
$ |
2,944.7 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
288.6 |
$ |
316.6 |
|||
|
Accrued interest payable |
55.2 |
31.1 |
|||||
|
Accrued salaries, wages and benefits |
12.4 |
32.9 |
|||||
|
Other taxes payable |
23.3 |
17.9 |
|||||
|
Other current liabilities |
138.9 |
119.0 |
|||||
|
Current portion of long-term debt |
3.1 |
1.7 |
|||||
|
Note payable — related party |
19.3 |
73.5 |
|||||
|
Derivative liabilities |
11.0 |
33.9 |
|||||
|
Total current liabilities |
551.8 |
626.6 |
|||||
|
Noncurrent deferred income taxes |
2.0 |
2.1 |
|||||
|
Pension and postretirement benefit obligations |
11.1 |
13.0 |
|||||
|
Other long-term liabilities |
1.1 |
0.9 |
|||||
|
Long-term debt, less current portion |
1,979.9 |
1,698.2 |
|||||
|
Total liabilities |
2,545.9 |
2,340.8 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
304.9 |
605.5 |
|||||
|
Accumulated other comprehensive loss |
(10.7) |
(1.6) |
|||||
|
Total partners' capital |
294.2 |
603.9 |
|||||
|
Total liabilities and partners' capital |
$ |
2,840.1 |
$ |
2,944.7 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
|
Nine Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
(In millions) | |||||||
|
Operating activities |
|||||||
|
Net loss |
$ |
(249.0) |
$ |
(22.6) |
|||
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|||||||
|
Depreciation and amortization |
127.1 |
107.4 |
|||||
|
Amortization of turnaround costs |
25.3 |
19.4 |
|||||
|
Non-cash interest expense |
7.2 |
5.2 |
|||||
|
Non-cash debt extinguishment costs |
— |
9.1 |
|||||
|
Provision for doubtful accounts |
0.4 |
0.6 |
|||||
|
Unrealized (gain) loss on derivative instruments |
(23.5) |
27.7 |
|||||
|
Asset impairment |
33.4 |
33.8 |
|||||
|
(Gain) loss on disposal of fixed assets |
(0.5) |
2.0 |
|||||
|
Non-cash equity based compensation |
3.9 |
7.8 |
|||||
|
Deferred income tax benefit |
(0.4) |
(22.1) |
|||||
|
Lower of cost or market inventory adjustment |
(33.3) |
57.7 |
|||||
|
Loss from unconsolidated affiliates |
18.5 |
47.2 |
|||||
|
Loss on sale of unconsolidated affiliates |
113.4 |
— |
|||||
|
Other non-cash activities |
3.7 |
4.0 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(69.8) |
66.0 |
|||||
|
Inventories |
16.3 |
28.0 |
|||||
|
Prepaid expenses and other current assets |
(6.6) |
2.6 |
|||||
|
Derivative activity |
(18.1) |
(5.4) |
|||||
|
Turnaround costs |
(8.7) |
(15.2) |
|||||
|
Other assets |
(0.3) |
— |
|||||
|
Accounts payable |
11.6 |
(92.3) |
|||||
|
Accrued interest payable |
24.1 |
9.0 |
|||||
|
Accrued salaries, wages and benefits |
(17.0) |
4.6 |
|||||
|
Other taxes payable |
5.4 |
6.4 |
|||||
|
Other liabilities |
19.9 |
16.0 |
|||||
|
Pension and postretirement benefit obligations |
(1.8) |
(0.8) |
|||||
|
Net cash provided by (used in) operating activities |
(18.8) |
296.1 |
|||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(117.3) |
(236.8) |
|||||
|
Investment in unconsolidated affiliates |
(41.9) |
(58.5) |
|||||
|
Return of investment from unconsolidated affiliate |
0.9 |
8.5 |
|||||
|
Proceeds from sale of unconsolidated affiliates |
29.0 |
— |
|||||
|
Proceeds from sale of property, plant and equipment |
1.9 |
0.5 |
|||||
|
Net cash used in investing activities |
(127.4) |
(286.3) |
|||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
823.2 |
1,055.4 |
|||||
|
Repayments of borrowings — revolving credit facility |
(934.1) |
(1,098.5) |
|||||
|
Repayments of borrowings — senior notes |
— |
(275.0) |
|||||
|
Repayments of borrowings — related party note |
(55.4) |
— |
|||||
|
Payments on capital lease obligations |
(6.2) |
(6.0) |
|||||
|
Proceeds from other financing obligations |
6.9 |
1.1 |
|||||
|
Proceeds from senior notes offering |
393.1 |
322.6 |
|||||
|
Debt issuance costs |
(10.1) |
(5.6) |
|||||
|
Proceeds from public offerings of common units, net |
— |
161.4 |
|||||
|
Contributions from Calumet GP, LLC |
0.2 |
3.5 |
|||||
|
Common units repurchased and taxes paid for phantom unit grants |
(1.8) |
(3.6) |
|||||
|
Distributions to partners |
(57.4) |
(167.4) |
|||||
|
Net cash provided by (used in) financing activities |
158.4 |
(12.1) |
|||||
|
Net increase (decrease) in cash and cash equivalents |
12.2 |
(2.3) |
|||||
|
Cash and cash equivalents at beginning of period |
5.6 |
8.5 |
|||||
|
Cash and cash equivalents at end of period |
$ |
17.8 |
$ |
6.2 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||||||
|
RECONCILIATION OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||||
|
(In millions) | |||||||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||||
|
Reconciliation of Net loss to EBITDA, Adjusted |
(Unaudited) | ||||||||||||||||||
|
Net loss |
$ |
(33.4) |
$ |
(48.9) |
$ |
(249.0) |
$ |
(22.6) |
|||||||||||
|
Add: |
|||||||||||||||||||
|
Interest expense |
44.6 |
25.5 |
117.7 |
79.9 |
|||||||||||||||
|
Debt extinguishment costs |
— |
— |
— |
46.6 |
|||||||||||||||
|
Depreciation and amortization |
44.5 |
36.0 |
127.1 |
107.4 |
|||||||||||||||
|
Income tax benefit |
(7.6) |
(7.9) |
(7.1) |
(21.8) |
|||||||||||||||
|
EBITDA |
$ |
48.1 |
$ |
4.7 |
$ |
(11.3) |
$ |
189.5 |
|||||||||||
|
Add: |
|||||||||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
4.9 |
$ |
5.0 |
$ |
(23.5) |
$ |
27.7 |
|||||||||||
|
Realized loss on derivatives, not included in net loss |
(4.8) |
(1.9) |
(9.2) |
(8.4) |
|||||||||||||||
|
Amortization of turnaround costs |
7.9 |
6.7 |
25.3 |
19.4 |
|||||||||||||||
|
Impairment charges |
— |
58.1 |
33.4 |
58.1 |
|||||||||||||||
|
Loss on sale of unconsolidated affiliate |
— |
— |
113.9 |
— |
|||||||||||||||
|
Non-cash equity based compensation and other non- |
(2.2) |
2.8 |
1.9 |
9.0 |
|||||||||||||||
|
Adjusted EBITDA |
$ |
53.9 |
$ |
75.4 |
$ |
130.5 |
$ |
295.3 |
|||||||||||
|
Less: |
|||||||||||||||||||
|
Replacement and environmental capital |
$ |
8.8 |
$ |
16.3 |
$ |
19.9 |
$ |
33.6 |
|||||||||||
|
Cash interest expense (2) |
42.0 |
23.2 |
110.5 |
74.7 |
|||||||||||||||
|
Turnaround costs |
0.6 |
9.3 |
8.7 |
15.2 |
|||||||||||||||
|
Loss from unconsolidated affiliates |
(0.3) |
(10.4) |
(18.5) |
(23.2) |
|||||||||||||||
|
Income tax benefit |
(7.6) |
(7.9) |
(7.1) |
(21.8) |
|||||||||||||||
|
Distributable Cash Flow |
$ |
10.4 |
$ |
44.9 |
$ |
17.0 |
$ |
216.8 |
|||||||||||
|
(1) |
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. | ||||||||||||||||||
|
(2) |
Represents consolidated interest expense less non-cash interest expense. | ||||||||||||||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||
|
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA | |||||||||||||
|
TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | |||||||||||||
|
(In millions) | |||||||||||||
|
Nine Months Ended September 30, | |||||||||||||
|
2016 |
2015 | ||||||||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash |
(Unaudited) | ||||||||||||
|
Distributable Cash Flow |
$ |
17.0 |
$ |
216.8 |
|||||||||
|
Add: |
|||||||||||||
|
Replacement and environmental capital expenditures (1) |
19.9 |
33.6 |
|||||||||||
|
Cash interest expense (2) |
110.5 |
74.7 |
|||||||||||
|
Turnaround costs |
8.7 |
15.2 |
|||||||||||
|
Loss from unconsolidated affiliates |
(18.5) |
(23.2) |
|||||||||||
|
Income tax benefit |
(7.1) |
(21.8) |
|||||||||||
|
Adjusted EBITDA |
$ |
130.5 |
$ |
295.3 |
|||||||||
|
Less: |
|||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(23.5) |
$ |
27.7 |
|||||||||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
(9.2) |
(8.4) |
|||||||||||
|
Amortization of turnaround costs |
25.3 |
19.4 |
|||||||||||
|
Impairment charges |
33.4 |
58.1 |
|||||||||||
|
Loss on sale of unconsolidated affiliate |
113.9 |
— |
|||||||||||
|
Non-cash equity based compensation and other non-cash items |
1.9 |
9.0 |
|||||||||||
|
EBITDA |
$ |
(11.3) |
$ |
189.5 |
|||||||||
|
Add: |
|||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(23.5) |
$ |
27.7 |
|||||||||
|
Cash interest expense (2) |
(110.5) |
(74.7) |
|||||||||||
|
Asset impairment |
33.4 |
33.8 |
|||||||||||
|
Non-cash equity based compensation |
3.9 |
7.8 |
|||||||||||
|
Deferred income tax benefit |
(0.4) |
(22.1) |
|||||||||||
|
Lower of cost or market inventory adjustment |
(33.3) |
57.7 |
|||||||||||
|
Loss from unconsolidated affiliates |
18.5 |
47.2 |
|||||||||||
|
Loss on sale of unconsolidated affiliates |
113.4 |
— |
|||||||||||
|
Amortization of turnaround costs |
25.3 |
19.4 |
|||||||||||
|
Income tax benefit |
7.1 |
21.8 |
|||||||||||
|
Provision for doubtful accounts |
0.4 |
0.6 |
|||||||||||
|
Debt extinguishment costs |
— |
(37.5) |
|||||||||||
|
Changes in assets and liabilities: |
|||||||||||||
|
Accounts receivable |
(69.8) |
66.0 |
|||||||||||
|
Inventories |
16.3 |
28.0 |
|||||||||||
|
Other current assets |
(6.6) |
2.6 |
|||||||||||
|
Turnaround costs |
(8.7) |
(15.2) |
|||||||||||
|
Derivative activity |
(18.1) |
(5.4) |
|||||||||||
|
Other assets |
(0.3) |
— |
|||||||||||
|
Accounts payable |
11.6 |
(92.3) |
|||||||||||
|
Accrued interest payable |
24.1 |
9.0 |
|||||||||||
|
Other current liabilities |
8.3 |
27.0 |
|||||||||||
|
Other, including changes in noncurrent liabilities |
1.4 |
5.2 |
|||||||||||
|
Net cash provided by (used in) operating activities |
$ |
(18.8) |
$ |
296.1 |
|||||||||
|
(1) |
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. | ||||||||||||
|
(2) |
Represents consolidated interest expense less non-cash interest expense. | ||||||||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
RECONCILIATION OF SEGMENT ADJUSTED EBITDA TO NET LOSS | |||||||
|
(In millions) | |||||||
|
Three Months Ended September 30, | |||||||
|
2016 |
2015 | ||||||
|
Reconciliation of Segment Adjusted EBITDA to Net loss: |
(Unaudited) | ||||||
|
Segment Adjusted EBITDA |
|||||||
|
Specialty products Adjusted EBITDA |
$ |
43.4 |
$ |
47.6 |
|||
|
Fuel products Adjusted EBITDA |
13.8 |
28.3 |
|||||
|
Oilfield services Adjusted EBITDA |
(3.3) |
(0.5) |
|||||
|
Total segment Adjusted EBITDA |
$ |
53.9 |
$ |
75.4 |
|||
|
Less: |
|||||||
|
Unrealized loss on derivative instruments |
$ |
4.9 |
$ |
5.0 |
|||
|
Realized loss on derivatives, not included in net loss or settled in a prior period |
(4.8) |
(1.9) |
|||||
|
Amortization of turnaround costs |
7.9 |
6.7 |
|||||
|
Impairment charges |
— |
58.1 |
|||||
|
Non-cash equity based compensation and other non-cash items |
(2.2) |
2.8 |
|||||
|
EBITDA |
$ |
48.1 |
$ |
4.7 |
|||
|
Less: |
|||||||
|
Interest expense |
$ |
44.6 |
$ |
25.5 |
|||
|
Depreciation and amortization |
44.5 |
36.0 |
|||||
|
Income tax benefit |
(7.6) |
(7.9) |
|||||
|
Net loss |
$ |
(33.4) |
$ |
(48.9) |
|||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
SELECTED COMMODITY DERIVATIVE INSTRUMENTS
As of September 30, 2016
Fuel Products Segment
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Western Canadian Select ("WCS") and NYMEX WTI. The following table provides a summary of crude oil basis swap contracts as of September 30, 2016, in the Partnership's fuel products segment:
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average | ||||||
|
Fourth Quarter 2016 |
1,196,000 |
13,000 |
$ |
(13.16) |
|||||
|
Calendar Year 2017 |
2,555,000 |
7,000 |
$ |
(13.22) |
|||||
|
Total |
3,751,000 |
||||||||
|
Average differential |
$ |
(13.20) |
|||||||
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Light Louisiana Sweet and NYMEX WTI. The following table provides a summary of crude oil basis swap contracts as of September 30, 2016, in the Partnership's fuel products segment:
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average | ||||||
|
Fourth Quarter 2016 |
460,000 |
5,000 |
$ |
1.80 |
|||||
|
Total |
460,000 |
||||||||
|
Average differential |
$ |
1.80 |
|||||||
Calumet has entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. The following table provides a summary of crude oil percentage basis swap contracts related to crude oil purchases as of September 30, 2016, in the Partnership's fuel products segment:
|
Crude Oil Percentage Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Fixed Percentage | |||||
|
Fourth Quarter 2016 |
736,000 |
8,000 |
73.5 |
% | ||||
|
Calendar Year 2017 |
1,095,000 |
3,000 |
72.3 |
% | ||||
|
Total |
1,831,000 |
|||||||
|
Average percentage |
72.8 |
% | ||||||
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
11/3/201610/13/2016 - Calumet Specialty Products Partners, L.P. Schedules Third Quarter 2016 Results Conference Call
Calumet Specialty Products Partners, L.P. Schedules Third Quarter 2016 Results Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Oct. 13, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that it will report results for the third quarter 2016 on November 3, 2016 before the market opens. A conference call is scheduled for 1:00 p.m. ET on November 3, 2016 to discuss the financial and operational results for the third quarter 2016.
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 http://www.calumetspecialty.com. Interested parties may also participate in the call by calling (866) 584-9671 and entering the passcode 98760854. A replay of the conference call will be available a few hours after the event on the investor relations section of the Company's website, under the events section.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
10/13/2016Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Sept. 23, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will attend the Deutsche Bank 24th Annual Leveraged Finance Conference in Scottsdale, AZ on September 27, 2016.
Calumet's latest investor presentation will be provided at the conference. Prior to Calumet's attendance at the listed conference, the Partnership will post an electronic copy of the presentation it intends to use in the "Investor Relations" section of the Partnership's corporate website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
9/23/2016Calumet Specialty Products Partners, L.P. Reports Second Quarter 2016 Results
Source: PR Newswire
INDIANAPOLIS, Aug. 4, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of petroleum-based specialty products, today reported results for the quarter ended June 30, 2016, as follows:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(Dollars in millions, except per unit data) | |||||||||||||||
|
Net income (loss) |
$ |
(147.9) |
$ |
2.5 |
$ |
(215.6) |
$ |
26.3 |
|||||||
|
Limited partners' interest basic and diluted net income (loss) per unit |
$ |
(1.89) |
$ |
(0.02) |
$ |
(2.76) |
$ |
0.23 |
|||||||
|
Adjusted EBITDA |
$ |
70.0 |
$ |
95.0 |
$ |
76.6 |
$ |
219.9 |
|||||||
The Partnership's net loss for the second quarter 2016 includes, but is not limited to, the impact of four items: (1) $147.3 million of non-cash charges due mainly to the Partnership's divestiture of its 50% joint venture interest in Dakota Prairie Refining, LLC ("DPR"); (2) a favorable lower of cost or market ("LCM") inventory adjustment of $36.3 million; (3) net expense of $8.2 million related to the Partnership's ongoing compliance with the U.S. Renewable Fuel Standard ("RFS"); and (4) a $7.1 million loss from unconsolidated affiliates primarily related to DPR, which was included in results from operations until divested on June 27, 2016.
Management Commentary
"We remain focused on strengthening balance sheet liquidity, reducing operating costs and pursuing self-help margin capture throughout our portfolio of assets," stated Tim Go, CEO of Calumet. "We made meaningful progress in each of these areas during the second quarter, despite a material year-over-year decline in benchmark refined product margins, elevated RFS compliance costs and continued commodity price volatility."
"During the second quarter, we divested our 50% joint venture interest in DPR, resulting in a $32 million net increase in Partnership liquidity, raised $400 million through a senior secured notes offering and suspended the payment of our quarterly cash distribution to unitholders that amounted to nearly $225 million of cash outflows in 2015," continued Go. "These decisive actions serve to strengthen our balance sheet in a continued volatile market."
"As of June 30, 2016, we had nearly $470 million in cash and availability on our revolving credit facility, even after $30 million of related party note repayments and $42 million in cash interest payments on outstanding unsecured notes during the second quarter 2016," continued Go.
"Targeted cost reductions and disciplined expense management have resulted in significant savings on a year-to-date basis," continued Go. "Total selling, general and administrative expenses declined $38 million in the first half of 2016, when compared to the prior year period."
"We continue to source increased volumes of cost-advantaged feedstock in our refining system, resulting in a lower overall per barrel delivered cost of crude oil," continued Go. "In the second quarter 2016, we processed a record 35,600 bpd of cost-advantaged heavy Canadian crude oil at our Superior and Great Falls refineries."
"Although specialty products sales volumes increased on a year-over-year basis in the second quarter 2016, a rapid escalation in crude oil prices during the period impacted segment gross profit," continued Go. "We enacted price increases in the specialty products segment in June 2016, in response to higher feedstock costs."
"Looking ahead to the third quarter 2016, we anticipate increased margin capture within our specialty products segment, following recent price increases. In our fuel products segment, we continue to sell gasoline, distillate and jet fuel at a premium to the Gulf Coast in our local markets, although benchmark refined product margins remain constrained by elevated domestic fuel products inventories. We expect our asphalt business to reach a seasonal peak in the third quarter, allowing for the conversion of existing asphalt inventory to cash ahead of the winter," concluded Go.
Specialty Products Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2016 |
2015 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Specialty products segment gross profit |
$ |
98.5 |
$ |
109.7 |
|||
|
Specialty products segment Adjusted EBITDA |
$ |
59.0 |
$ |
63.2 |
|||
|
Specialty products segment gross profit per barrel |
$ |
35.69 |
$ |
45.94 |
|||
During the second quarter 2016, total specialty products sales volumes increased 15.6% above year-ago levels. Segment gross profit in the period was impacted by a rapid rise in crude oil prices, which outpaced adjustments in product pricing during the second quarter 2016. In response to higher crude oil prices, the Partnership enacted price increases in the specialty products segment in June 2016.
Fuel Products Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2016 |
2015 | ||||||
|
(Dollars in millions, except per barrel data) | |||||||
|
Fuel products segment gross profit |
$ |
32.0 |
$ |
88.8 |
|||
|
Fuel products segment Adjusted EBITDA |
$ |
18.9 |
$ |
46.0 |
|||
|
Fuel products segment gross profit per barrel (including hedging activities) |
$ |
2.84 |
$ |
9.94 |
|||
|
Fuel products segment gross profit per barrel (excluding hedging activities) |
$ |
2.59 |
$ |
8.83 |
|||
During the second quarter 2016, a recovery in market premiums on fuel products sold in the Partnership's local refining markets was more than offset by an approximately 42% year-over-year decline in the benchmark Gulf Coast 2/1/1 crack spread and higher RFS compliance costs. The Great Falls refinery operated at approximately 25,500 bpd during the second quarter 2016, in line with expectations. Local Great Falls rack prices remain at a premium to Gulf Coast rack prices.
Oilfield Services Segment | Results Summary
|
Three Months Ended June 30, | |||||||
|
2016 |
2015 | ||||||
|
(Dollars in millions) | |||||||
|
Oilfield services segment gross profit |
$ |
0.8 |
$ |
4.2 |
|||
|
Oilfield services segment Adjusted EBITDA |
$ |
(7.9) |
$ |
(14.2) |
|||
The average price of NYMEX West Texas Intermediate crude oil declined by more than 20% in the second quarter 2016 when compared to the second quarter 2015. In response to lower crude oil prices, domestic oilfield services activity declined sharply during the past year, as the U.S. land rig count declined more than 53% on a year-over-year basis. The decline in drilling and completion activity had a material adverse impact on the oilfield services segment in the first half 2016. Although significant cost reduction efforts have taken effect within the segment, customer activity was well below prior-year levels during the second quarter 2016, resulting in lower net sales during the period.
Partnership Liquidity
As of June 30, 2016, the Partnership had availability under its revolving credit facility of $437.5 million, based on a $502.0 million borrowing base, $64.4 million in outstanding standby letters of credit and $0.1 million in outstanding borrowings. In addition, the Partnership had $32.2 million of cash on hand as of June 30, 2016. The Partnership believes it will continue to have sufficient liquidity from cash on hand, cash flow from operations, borrowing capacity and other means by which to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures.
Financial Guidance
Full-Year 2016 Capital Spending Forecast
For the full year 2016, the Partnership anticipates total capital expenditures between $125.0 million and $150.0 million. Anticipated 2016 capital spending includes: (1) $60.0 million to $70.0 million for capital improvement expenditures; (2) $45.0 million to $55.0 million for replacement and environmental capital expenditures; (3) $10.0 million to $15.0 million for turnaround related expenditures; and (4) $10.0 million for joint venture contributions.
Full-Year 2016 RFS Compliance Impact Forecast
In conjunction with the Partnership's ongoing compliance with the RFS, Calumet expects to purchase blending credits referred to as Renewable Identification Numbers ("RINs"). The Partnership records its outstanding RINs obligation as a balance sheet liability. This liability is marked-to-market on a quarterly basis to reflect the market price of RINs on the last day of each quarter. The Partnership expects its gross estimated annual RINs obligation, which includes RINs that are required to be secured through either blending or through the purchase of RINs in the open market, will be up to 120 million RINs for the full-year 2016, excluding the potential for any hardship waivers that may or may not be granted by the U.S. Environmental Protection Agency ("EPA") to any of the Partnership's fuel refineries at a later time. Calumet expects to be able to satisfy a portion of its 2016 gross RINs obligation through internal blending efforts.
Strategic Update
As previously indicated, Calumet is pursuing a series of cost reduction initiatives, margin enhancing measures and low-to-no cost projects that are intended to reduce balance sheet leverage and increase free cash flow on a sustainable basis. By year-end 2018, the program is projected to generate an incremental $150 million to $200 million of annualized EBITDA per year as compared to 2015, including $60 million to $75 million of which is expected to be realized in 2016. For information on forward-looking non-GAAP EBITDA, please see the section of this release entitled "Non-GAAP Financial Measures."
Operations Summary
The following table sets forth information about our combined operations, excluding the results of the oilfield services segment. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||
|
(In bpd) |
(In bpd) | |||||||||||
|
Total sales volume (1) |
154,286 |
124,440 |
139,363 |
122,950 |
||||||||
|
Total feedstock runs (2) |
143,118 |
122,012 |
135,751 |
121,439 |
||||||||
|
Facility production: (3) |
||||||||||||
|
Specialty products: |
||||||||||||
|
Lubricating oils |
15,716 |
15,005 |
14,785 |
13,377 |
||||||||
|
Solvents |
7,823 |
8,359 |
7,587 |
8,999 |
||||||||
|
Waxes |
1,581 |
1,513 |
1,458 |
1,583 |
||||||||
|
Packaged and synthetic specialty products (4) |
2,110 |
1,605 |
2,117 |
1,525 |
||||||||
|
Other |
1,799 |
1,434 |
1,354 |
1,164 |
||||||||
|
Total |
29,029 |
27,916 |
27,301 |
26,648 |
||||||||
|
Fuel products: |
||||||||||||
|
Gasoline |
37,954 |
36,491 |
37,999 |
37,086 |
||||||||
|
Diesel |
40,057 |
28,649 |
35,202 |
29,432 |
||||||||
|
Jet fuel |
4,314 |
5,043 |
4,995 |
5,047 |
||||||||
|
Asphalt, heavy fuel oils and other |
32,941 |
26,601 |
30,590 |
24,442 |
||||||||
|
Total |
115,266 |
96,784 |
108,786 |
96,007 |
||||||||
|
Total facility production (3) |
144,295 |
124,700 |
136,087 |
122,655 |
||||||||
|
(1) |
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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales. |
|
The increase in total sales volume for the three months ended June 30, 2016 compared to the same period in 2015 is due primarily to increased sales volume of lubricating oils, solvents and waxes, partially offset by decreased sales of packaged and synthetic specialty products due to market conditions. Additionally, sales volumes of fuel products including asphalt increased as a result of increased production at the Great Falls refinery from the expansion project completed in 2016 and market conditions. | |
|
The increase in total sales volume for the six months ended June 30, 2016 compared to the same period in 2015 is due primarily to increased sales volume of lubricating oils, diesel and asphalt as a result of market conditions and increased production at the Great Falls refinery from the expansion project completed in 2016. | |
|
(2) |
Total feedstock runs represent the bpd of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. |
|
The increase in total feedstock runs for the three and six months ended June 30, 2016 compared to the same periods in 2015 is due primarily to increased feedstock runs at the Great Falls refinery from the expansion project completed in 2016 and improved operational reliability, partially offset by decreased feedstock runs related to the production of solvents as a result of market conditions. | |
|
(3) |
Total facility production represents the bpd of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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. |
|
The change in total facility production for the three and six months ended June 30, 2016 compared to the same periods in 2015 is due primarily to the operational items discussed above in footnote 2 of this table. | |
|
(4) |
Represents production of packaged and synthetic specialty products, including the Royal Purple, Bel-Ray, Calumet Packaging and Missouri facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2016 and 2015:
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
(In millions) |
(In millions) | ||||||||||||||
|
Derivative gain reflected in sales |
$ |
15.1 |
$ |
63.1 |
$ |
31.1 |
$ |
83.3 |
|||||||
|
Derivative loss reflected in cost of sales |
(12.8) |
(51.6) |
(26.7) |
(73.5) |
|||||||||||
|
Derivative gain reflected in gross profit |
$ |
2.3 |
$ |
11.5 |
$ |
4.4 |
$ |
9.8 |
|||||||
|
Realized loss on derivative instruments |
$ |
(6.0) |
$ |
(14.0) |
$ |
(18.3) |
$ |
(5.1) |
|||||||
|
Unrealized gain (loss) on derivative instruments |
23.8 |
5.2 |
28.4 |
(22.7) |
|||||||||||
|
Derivative gain reflected in interest expense |
0.1 |
0.1 |
0.2 |
0.3 |
|||||||||||
|
Total derivative gain (loss) reflected in the unaudited condensed consolidated statements of operations |
$ |
20.2 |
$ |
2.8 |
$ |
14.7 |
$ |
(17.7) |
|||||||
|
Total loss on commodity derivative settlements |
$ |
(6.0) |
$ |
(15.1) |
(18.3) |
$ |
(1.8) |
||||||||
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.
A conference call is scheduled for 1:00 p.m. ET on August 4, 2016, to discuss the financial and operational results for the second quarter 2016. Investors, analysts and members of the media interested in listening to the live presentation may call (866) 584-9671 using the passcode 47292366. The telephonic replay is available by calling (855) 859-2056 and entering passcode 47292366. The replay will be available beginning August 4, 2016 until August 11, 2016. A webcast of the call and accompanying presentation slides will be available on the Partnership's website at http://www.calumetspecialty.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release concerning results for the three and six months ended June 30, 2016, may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook and cash flows, (ii) our expectation regarding anticipated capital expenditures and projected cost reduction initiatives, margin enhancing measures and low-to-no cost projects to reduce balance sheet leverage and increase cash flow, (iii) our access to capital to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures and (iv) expected benefits to the Partnership from the distribution suspension. 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 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 acquisitions. 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, fuels, other refined products and oilfield services; 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; 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; estimated capital expenditures as a result of our planned organic growth projects and estimated annual EBITDA contributions from such projects; 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 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; our ability to access the debt and equity markets; 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 Report 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.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow to Net cash provided by (used in) operating activities, our most directly comparable liquidity measure. Both Net income (loss) and Net cash provided by (used in) operating activities are calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP").
EBITDA, Adjusted EBITDA and Distributable Cash Flow 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties, (i) any net loss realized in connection with an asset sale that was deducted in computing net income (loss) and (j) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
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), income (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit). Distributable Cash Flow is used by us, our investors and analysts to analyze our ability to pay distributions.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release reflect the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.50% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes"), our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015 and our 11.50% senior secured notes due January 15, 2021 (the "2021 Secured Notes"), that were issued in April 2016. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes, 2023 Notes and 2021 Secured Notes and Adjusted 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. Adjusted EBITDA and Distributable Cash Flow that are presented in this press release for prior periods have been updated to reflect the use of the new calculations. Please see our filings with the SEC, including our 2015 Annual Report on Form 10-K, Quarterly Report on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
The preliminary expected range for forward-looking non-GAAP EBITDA contained in this press release is provided only on a non-GAAP basis, due to the inherent difficulty of calculating items that would be included in Net income (loss) on a GAAP basis. As a result, reconciliation of forward-looking non-GAAP EBITDA to GAAP Net income (loss) is not available without unreasonable effort, and Calumet is unable to address the probable significance of information that is currently unavailable. It is expected that non-GAAP EBITDA, when reported, will reflect the exclusion of, among other things, interest expense, depreciation and amortization, and income taxes.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net income (loss), operating income (loss), net cash provided by (used in) operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of several measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable GAAP financial performance measure, and Distributable Cash Flow to net cash provided by (used in) operating activities, our most directly comparable GAAP liquidity measure, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||
|
Sales |
$ |
972.9 |
$ |
1,156.2 |
$ |
1,685.9 |
$ |
2,174.8 |
|||||||
|
Cost of sales |
841.6 |
953.5 |
1,468.4 |
1,776.9 |
|||||||||||
|
Gross profit |
131.3 |
202.7 |
217.5 |
397.9 |
|||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
26.2 |
37.8 |
56.7 |
76.2 |
|||||||||||
|
General and administrative |
24.8 |
31.7 |
52.4 |
70.9 |
|||||||||||
|
Transportation |
45.0 |
42.3 |
84.2 |
84.3 |
|||||||||||
|
Taxes other than income taxes |
4.2 |
4.0 |
9.9 |
8.0 |
|||||||||||
|
Asset impairment |
33.4 |
— |
33.4 |
— |
|||||||||||
|
Other |
0.3 |
3.2 |
2.3 |
6.1 |
|||||||||||
|
Operating income (loss) |
(2.6) |
83.7 |
(21.4) |
152.4 |
|||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(42.8) |
(27.4) |
(73.1) |
(54.4) |
|||||||||||
|
Debt extinguishment costs |
— |
(46.6) |
— |
(46.6) |
|||||||||||
|
Realized loss on derivative instruments |
(6.0) |
(14.0) |
(18.3) |
(5.1) |
|||||||||||
|
Unrealized gain (loss) on derivative instruments |
23.8 |
5.2 |
28.4 |
(22.7) |
|||||||||||
|
Loss from unconsolidated affiliates |
(7.1) |
(8.2) |
(18.2) |
(12.7) |
|||||||||||
|
Loss on sale of unconsolidated affiliates |
(113.4) |
— |
(113.4) |
— |
|||||||||||
|
Other |
0.5 |
0.7 |
0.9 |
1.5 |
|||||||||||
|
Total other expense |
(145.0) |
(90.3) |
(193.7) |
(140.0) |
|||||||||||
|
Net income (loss) before income taxes |
(147.6) |
(6.6) |
(215.1) |
12.4 |
|||||||||||
|
Income tax expense (benefit) |
0.3 |
(9.1) |
0.5 |
(13.9) |
|||||||||||
|
Net income (loss) |
$ |
(147.9) |
$ |
2.5 |
$ |
(215.6) |
$ |
26.3 |
|||||||
|
Allocation of net income (loss): |
|||||||||||||||
|
Net income (loss) |
$ |
(147.9) |
$ |
2.5 |
$ |
(215.6) |
$ |
26.3 |
|||||||
|
Less: |
|||||||||||||||
|
General partner's interest in net income (loss) |
(2.9) |
— |
(4.3) |
0.5 |
|||||||||||
|
General partner's incentive distribution rights |
— |
4.2 |
— |
8.4 |
|||||||||||
|
Net income (loss) available to limited partners |
$ |
(145.0) |
$ |
(1.7) |
$ |
(211.3) |
$ |
17.4 |
|||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic |
76,761,504 |
76,092,517 |
76,491,775 |
73,675,251 |
|||||||||||
|
Diluted |
76,761,504 |
76,092,517 |
76,491,775 |
73,730,189 |
|||||||||||
|
Limited partners' interest basic and diluted net income (loss) per unit |
$ |
(1.89) |
$ |
(0.02) |
$ |
(2.76) |
$ |
0.23 |
|||||||
|
Cash distributions declared per limited partner unit |
$ |
— |
$ |
0.685 |
$ |
0.685 |
$ |
1.37 |
|||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
June 30, 2016 |
December 31, 2015 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
32.2 |
$ |
5.6 |
|||
|
Accounts receivable, net |
270.2 |
210.7 |
|||||
|
Inventories |
444.9 |
384.4 |
|||||
|
Derivative assets |
4.9 |
— |
|||||
|
Prepaid expenses and other current assets |
11.5 |
8.3 |
|||||
|
Total current assets |
763.7 |
609.0 |
|||||
|
Property, plant and equipment, net |
1,705.0 |
1,719.2 |
|||||
|
Investment in unconsolidated affiliates |
6.9 |
126.0 |
|||||
|
Goodwill |
178.6 |
212.0 |
|||||
|
Other intangible assets, net |
197.2 |
214.1 |
|||||
|
Other noncurrent assets, net |
55.4 |
64.4 |
|||||
|
Total assets |
$ |
2,906.8 |
$ |
2,944.7 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
316.2 |
$ |
316.6 |
|||
|
Accrued interest payable |
40.2 |
31.1 |
|||||
|
Accrued salaries, wages and benefits |
13.3 |
32.9 |
|||||
|
Other taxes payable |
21.1 |
17.9 |
|||||
|
Other current liabilities |
144.7 |
119.0 |
|||||
|
Current portion of long-term debt |
1.6 |
1.7 |
|||||
|
Note payable — related party |
39.9 |
73.5 |
|||||
|
Derivative liabilities |
10.4 |
33.9 |
|||||
|
Total current liabilities |
587.4 |
626.6 |
|||||
|
Noncurrent deferred income taxes |
2.0 |
2.1 |
|||||
|
Pension and postretirement benefit obligations |
12.0 |
13.0 |
|||||
|
Other long-term liabilities |
1.0 |
0.9 |
|||||
|
Long-term debt, less current portion |
1,972.9 |
1,698.2 |
|||||
|
Total liabilities |
2,575.3 |
2,340.8 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
337.4 |
605.5 |
|||||
|
Accumulated other comprehensive loss |
(5.9) |
(1.6) |
|||||
|
Total partners' capital |
331.5 |
603.9 |
|||||
|
Total liabilities and partners' capital |
$ |
2,906.8 |
$ |
2,944.7 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
Six Months Ended June 30, | |||||||
|
2016 |
2015 | ||||||
|
(In millions) | |||||||
|
Operating activities |
|||||||
|
Net income (loss) |
$ |
(215.6) |
$ |
26.3 |
|||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|||||||
|
Depreciation and amortization |
82.6 |
71.4 |
|||||
|
Amortization of turnaround costs |
17.4 |
12.7 |
|||||
|
Non-cash interest expense |
4.6 |
2.9 |
|||||
|
Non-cash debt extinguishment costs |
— |
9.1 |
|||||
|
Provision for doubtful accounts |
0.5 |
0.2 |
|||||
|
Unrealized (gain) loss on derivative instruments |
(28.4) |
22.7 |
|||||
|
Asset impairment |
33.4 |
— |
|||||
|
(Gain) loss on disposal of fixed assets |
(0.7) |
1.0 |
|||||
|
Non-cash equity based compensation |
2.9 |
5.5 |
|||||
|
Deferred income tax benefit |
(0.2) |
(14.1) |
|||||
|
Lower of cost or market inventory adjustment |
(44.4) |
0.8 |
|||||
|
Loss from unconsolidated affiliates |
18.2 |
12.7 |
|||||
|
Loss on sale of unconsolidated affiliates |
113.4 |
— |
|||||
|
Other non-cash activities |
2.3 |
2.9 |
|||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(60.0) |
39.4 |
|||||
|
Inventories |
(10.3) |
(40.6) |
|||||
|
Prepaid expenses and other current assets |
(1.5) |
4.5 |
|||||
|
Derivative activity |
(10.4) |
(3.5) |
|||||
|
Turnaround costs |
(8.1) |
(5.9) |
|||||
|
Other assets |
(0.4) |
— |
|||||
|
Accounts payable |
35.1 |
(7.0) |
|||||
|
Accrued interest payable |
9.1 |
(5.1) |
|||||
|
Accrued salaries, wages and benefits |
(16.0) |
1.6 |
|||||
|
Other taxes payable |
3.2 |
1.3 |
|||||
|
Other liabilities |
22.5 |
21.7 |
|||||
|
Pension and postretirement benefit obligations |
(0.9) |
(0.5) |
|||||
|
Net cash provided by (used in) operating activities |
(51.7) |
160.0 |
|||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(87.9) |
(153.2) |
|||||
|
Investment in unconsolidated affiliates |
(41.8) |
(46.0) |
|||||
|
Proceeds from sale of unconsolidated affiliates |
29.0 |
— |
|||||
|
Proceeds from sale of property, plant and equipment |
1.9 |
0.2 |
|||||
|
Net cash used in investing activities |
(98.8) |
(199.0) |
|||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
479.0 |
637.3 |
|||||
|
Repayments of borrowings — revolving credit facility |
(589.9) |
(685.0) |
|||||
|
Repayments of borrowings — senior notes |
— |
(275.0) |
|||||
|
Repayments of borrowings — related party note |
(34.5) |
— |
|||||
|
Payments on capital lease obligations |
(4.1) |
(3.5) |
|||||
|
Proceeds from other financing obligations |
2.4 |
— |
|||||
|
Proceeds from senior notes offering |
393.1 |
322.6 |
|||||
|
Debt issuance costs |
(9.9) |
(5.6) |
|||||
|
Proceeds from public offerings of common units, net |
— |
161.5 |
|||||
|
Contributions from Calumet GP, LLC |
0.2 |
3.5 |
|||||
|
Common units repurchased and taxes paid for phantom unit grants |
(1.8) |
(3.6) |
|||||
|
Distributions to partners |
(57.4) |
(110.0) |
|||||
|
Net cash provided by financing activities |
177.1 |
42.2 |
|||||
|
Net increase in cash and cash equivalents |
26.6 |
3.2 |
|||||
|
Cash and cash equivalents at beginning of period |
5.6 |
8.5 |
|||||
|
Cash and cash equivalents at end of period |
$ |
32.2 |
$ |
11.7 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow: |
(Unaudited) | |||||||||||||||
|
Net income (loss) |
$ |
(147.9) |
$ |
2.5 |
$ |
(215.6) |
$ |
26.3 |
||||||||
|
Add: |
||||||||||||||||
|
Interest expense |
42.8 |
27.4 |
73.1 |
54.4 |
||||||||||||
|
Debt extinguishment costs |
— |
46.6 |
— |
46.6 |
||||||||||||
|
Depreciation and amortization |
43.8 |
36.0 |
82.6 |
71.4 |
||||||||||||
|
Income tax expense (benefit) |
0.3 |
(9.1) |
0.5 |
(13.9) |
||||||||||||
|
EBITDA |
$ |
(61.0) |
$ |
103.4 |
$ |
(59.4) |
$ |
184.8 |
||||||||
|
Add: |
||||||||||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(23.8) |
$ |
(5.2) |
$ |
(28.4) |
$ |
22.7 |
||||||||
|
Realized loss on derivatives, not included in net income (loss) or settled in a prior period |
(2.3) |
(12.6) |
(4.4) |
(6.5) |
||||||||||||
|
Amortization of turnaround costs |
8.3 |
6.6 |
17.4 |
12.7 |
||||||||||||
|
Impairment charges |
33.4 |
— |
33.4 |
— |
||||||||||||
|
Loss on sale of unconsolidated affiliates |
113.9 |
— |
113.9 |
— |
||||||||||||
|
Non-cash equity based compensation and other non-cash items |
1.5 |
2.8 |
4.1 |
6.2 |
||||||||||||
|
Adjusted EBITDA |
$ |
70.0 |
$ |
95.0 |
$ |
76.6 |
$ |
219.9 |
||||||||
|
Less: |
||||||||||||||||
|
Replacement and environmental capital expenditures (1) |
$ |
3.3 |
$ |
10.0 |
$ |
11.1 |
$ |
17.3 |
||||||||
|
Cash interest expense (2) |
40.1 |
25.9 |
68.5 |
51.5 |
||||||||||||
|
Turnaround costs |
1.7 |
3.2 |
8.1 |
5.9 |
||||||||||||
|
Loss from unconsolidated affiliates |
(7.1) |
(8.3) |
(18.2) |
(12.8) |
||||||||||||
|
Income tax expense (benefit) |
0.3 |
(9.1) |
0.5 |
(13.9) |
||||||||||||
|
Distributable Cash Flow |
$ |
31.7 |
$ |
73.3 |
$ |
6.6 |
$ |
171.9 |
||||||||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | ||||||||
|
Six Months Ended June 30, | ||||||||
|
2016 |
2015 | |||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by (used in) operating activities: |
(Unaudited) | |||||||
|
Distributable Cash Flow |
$ |
6.6 |
$ |
171.9 |
||||
|
Add: |
||||||||
|
Replacement and environmental capital expenditures (1) |
11.1 |
17.3 |
||||||
|
Cash interest expense (2) |
68.5 |
51.5 |
||||||
|
Turnaround costs |
8.1 |
5.9 |
||||||
|
Loss from unconsolidated affiliates |
(18.2) |
(12.8) |
||||||
|
Income tax expense (benefit) |
0.5 |
(13.9) |
||||||
|
Adjusted EBITDA |
$ |
76.6 |
$ |
219.9 |
||||
|
Less: |
||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(28.4) |
$ |
22.7 |
||||
|
Realized loss on derivatives, not included in net income (loss) or settled in a prior period |
(4.4) |
(6.5) |
||||||
|
Amortization of turnaround costs |
17.4 |
12.7 |
||||||
|
Impairment charges |
33.4 |
— |
||||||
|
Loss on sale of unconsolidated affiliate |
113.9 |
— |
||||||
|
Non-cash equity based compensation and other non-cash items |
4.1 |
6.2 |
||||||
|
EBITDA |
$ |
(59.4) |
$ |
184.8 |
||||
|
Add: |
||||||||
|
Unrealized (gain) loss on derivative instruments |
$ |
(28.4) |
$ |
22.7 |
||||
|
Cash interest expense (2) |
(68.5) |
(51.5) |
||||||
|
Asset impairment |
33.4 |
— |
||||||
|
Non-cash equity based compensation |
2.9 |
5.5 |
||||||
|
Deferred income tax benefit |
(0.2) |
(14.1) |
||||||
|
Lower of cost or market inventory adjustment |
(44.4) |
0.8 |
||||||
|
Loss from unconsolidated affiliates |
18.2 |
12.7 |
||||||
|
Loss on sale of unconsolidated affiliates |
113.4 |
— |
||||||
|
Amortization of turnaround costs |
17.4 |
12.7 |
||||||
|
Income tax (expense) benefit |
(0.5) |
13.9 |
||||||
|
Provision for doubtful accounts |
0.5 |
0.2 |
||||||
|
Debt extinguishment costs |
— |
(37.5) |
||||||
|
Changes in assets and liabilities: |
||||||||
|
Accounts receivable |
(60.0) |
39.4 |
||||||
|
Inventories |
(10.3) |
(40.6) |
||||||
|
Other current assets |
(1.5) |
4.5 |
||||||
|
Turnaround costs |
(8.1) |
(5.9) |
||||||
|
Derivative activity |
(10.4) |
(3.5) |
||||||
|
Other assets |
(0.4) |
— |
||||||
|
Accounts payable |
35.1 |
(7.0) |
||||||
|
Accrued interest payable |
9.1 |
(5.1) |
||||||
|
Other current liabilities |
9.7 |
24.6 |
||||||
|
Other, including changes in noncurrent liabilities |
0.7 |
3.4 |
||||||
|
Net cash provided by (used in) operating activities |
$ |
(51.7) |
$ |
160.0 |
||||
|
(1) |
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. |
|
(2) |
Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. | |||||||
|
Three Months Ended June 30, | |||||||
|
2016 |
2015 | ||||||
|
Reconciliation of Segment Adjusted EBITDA to Net income (loss): |
(Unaudited) | ||||||
|
Segment Adjusted EBITDA |
|||||||
|
Specialty products Adjusted EBITDA |
$ |
59.0 |
$ |
63.2 |
|||
|
Fuel products Adjusted EBITDA |
18.9 |
46.0 |
|||||
|
Oilfield services Adjusted EBITDA |
(7.9) |
(14.2) |
|||||
|
Total segment Adjusted EBITDA |
$ |
70.0 |
$ |
95.0 |
|||
|
Less: |
|||||||
|
Unrealized gain on derivative instruments |
$ |
(23.8) |
$ |
(5.2) |
|||
|
Realized loss on derivatives, not included in net income (loss) or settled in a prior period |
(2.3) |
(12.6) |
|||||
|
Amortization of turnaround costs |
8.3 |
6.6 |
|||||
|
Impairment charges |
33.4 |
— |
|||||
|
Loss on sale of unconsolidated affiliate |
113.9 |
— |
|||||
|
Non-cash equity based compensation and other non-cash items |
1.5 |
2.8 |
|||||
|
EBITDA |
$ |
(61.0) |
$ |
103.4 |
|||
|
Less: |
|||||||
|
Interest expense |
$ |
42.8 |
$ |
27.4 |
|||
|
Debt extinguishment costs |
— |
46.6 |
|||||
|
Depreciation and amortization |
43.8 |
36.0 |
|||||
|
Income tax expense (benefit) |
0.3 |
(9.1) |
|||||
|
Net income (loss) |
$ |
(147.9) |
$ |
2.5 |
|||
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
SELECTED COMMODITY DERIVATIVE INSTRUMENTS
As of June 30, 2016
Fuel Products Segment
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Western Canadian Select ("WCS") and NYMEX WTI. The following table provides a summary of crude oil basis swap contracts as of June 30, 2016, in the Partnership's fuel products segment:
|
Crude Oil Basis Swap Contracts by |
Barrels Purchased |
BPD |
Average | ||||||
|
Third Quarter 2016 |
1,196,000 |
13,000 |
$ |
(13.16) |
|||||
|
Fourth Quarter 2016 |
1,196,000 |
13,000 |
$ |
(13.16) |
|||||
|
Calendar Year 2017 |
2,555,000 |
7,000 |
$ |
(13.22) |
|||||
|
Total |
4,947,000 |
||||||||
|
Average differential |
$ |
(13.19) |
|||||||
Calumet has entered into crude oil basis swaps to mitigate the risk of future changes in pricing differentials between Light Louisiana Sweet and NYMEX WTI. The following table provides a summary of crude oil basis swap contracts as of June 30, 2016, in the Partnership's fuel products segment:
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average | ||||||
|
Third Quarter 2016 |
460,000 |
5,000 |
$ |
1.80 |
|||||
|
Fourth Quarter 2016 |
460,000 |
5,000 |
$ |
1.80 |
|||||
|
Total |
920,000 |
||||||||
|
Average differential |
$ |
1.80 |
|||||||
Calumet has entered into derivative instruments to secure a percentage differential on WCS crude oil to NYMEX WTI. The following table provides a summary of crude oil percentage basis swap contracts related to crude oil purchases as of June 30, 2016, in the Partnership's fuel products segment:
|
Crude Oil Percentage Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Fixed Percentage | |||||
|
Third Quarter 2016 |
736,000 |
8,000 |
73.5 |
% | ||||
|
Fourth Quarter 2016 |
736,000 |
8,000 |
73.5 |
% | ||||
|
Calendar Year 2017 |
1,095,000 |
3,000 |
72.3 |
% | ||||
|
Total |
2,567,000 |
|||||||
|
Average percentage |
73.0 |
% | ||||||
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
8/4/20167/13/2016 - Calumet Specialty Products Partners, L.P. Schedules Second Quarter 2016 Results Conference Call
Calumet Specialty Products Partners, L.P. Schedules Second Quarter 2016 Results Conference Call
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, July 13, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet" or the "Partnership") a leading independent producer of specialty hydrocarbon and fuel products, today announced that it will report results for the second quarter 2016 on August 4, 2016 before the market opens. A conference call is scheduled for 1:00 p.m. ET on August 4, 2016 to discuss the financial and operational results for the second quarter 2016.
Investors, analysts and members of the media interested in listening to the live presentation may call (866) 584-9671 using the passcode 47292366. The telephonic replay will be available by calling (855) 859-2056 and entering passcode 47292366. The replay will be available beginning August 4, 2016 until August 11, 2016. A webcast of the call and accompanying presentation slides will be available on the Partnership's website at http://www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (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.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
7/13/2016Calumet Specialty Products Partners, L.P. Sells Dakota Prairie Refining Joint Venture Interest To A Subsidiary Of MDU Resources Group, Inc.
Source: PR Newswire
INDIANAPOLIS, June 28, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced the sale of its 50% equity interest in Dakota Prairie Refining, LLC ("DPR") to joint venture partner WBI Energy, Inc. ("WBI"), a wholly-owned subsidiary of MDU Resources Group, Inc. ("MDU"). Concurrent with Calumet's sale of its equity interest to WBI, Tesoro Corporation has acquired 100% of DPR from WBI in a separate transaction that closed on June 27, 2016.
DPR is a 20,000 bpd fuels refinery with related storage and logistics assets located in Dickinson, North Dakota. DPR commenced operations in May 2015, employs approximately 75 people and produces a combination of diesel fuel, naphtha and atmospheric tower bottoms.
Under the terms of the definitive agreement with WBI, Calumet will receive consideration of $28.5 million and will be released from all financial, commercial and environmental obligations associated with DPR, including certain debt obligations of DPR that currently total approximately $66 million.
"This transaction allows for the orderly divestiture of DPR from Calumet's portfolio, while positioning us to refocus on our vision of becoming the premier provider of petroleum-based specialty products in the world," stated Tim Go, CEO of Calumet. "Further, we view this agreement as an optimal outcome for all parties involved, including the valued employees of DPR, surrounding communities and customers whom the refinery continues to supply."
"Although operations at DPR have been safe and reliable since the refinery commenced production in 2015 – a testament to the dedication and diligence of our on-site employees – market conditions have been challenging, given sustained commodity price volatility and a slowing in commercial activity throughout the Bakken region," continued Go. "For the full-year 2016, we anticipate the sale of our joint venture interest in DPR will positively impact our consolidated Adjusted EBITDA, while bolstering our overall liquidity."
"The sale of DPR represents the first significant divestiture in Calumet's 25-year history," continued Go. "This transaction positions us to narrow the Partnership's strategic focus around our remaining portfolio of competitively advantaged, niche market assets. Though a series of operations excellence initiatives, we will seek to extract additional value from this portfolio, while positioning the Partnership to drive sustained growth in cash flows from operations in the coming years."
About Calumet Specialty Products Partners, L.P.
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 has thirteen manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-K, Quarterly Report 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/28/2016Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, June 16, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will attend the following upcoming investor conference:
4th Annual Credit Suisse MLP and Energy Logistics Conference
June 21, 2016
Credit Suisse Offices – New York, NY
Calumet's latest investor presentation will be provided at the conference. Prior to Calumet's attendance at the listed conference, the Partnership will post an electronic copy of the presentation it intends to use in the "Investor Relations" section of the Partnership's corporate website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/16/2016Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, June 3, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will attend the following upcoming investor conference:
Bank of America Merrill Lynch 2016 Energy Credit Conference
June 7-8, 2016
Westin New York Times Square – New York, NY
Calumet's latest investor presentation will be provided at the conference. Prior to Calumet's attendance at the listed conference, the Partnership will post an electronic copy of the presentation it intends to use in the "Investor Relations" section of the Partnership's corporate website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
6/3/2016Calumet Specialty Products Partners, L.P. Provides Strategic Update
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, April 15, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership"), a leading independent producer of specialty hydrocarbon and fuels products, today announced a series of targeted strategic measures intended to enhance available liquidity and position the Partnership for long-term profitable growth.
"The proceeds raised from the senior secured notes offering, in conjunction with a suspension in our quarterly cash distribution, position us to manage our capital structure with prudence and conservatism during a challenging period for our business, while repositioning the Partnership for long-term strategic growth in our core specialty products markets," stated Tim Go, CEO of Calumet. "Moreover, given the completion of a multi-year organic growth project campaign in the first quarter 2016, we anticipate that our current-year capital spending to be well below prior-year levels, consistent with our previously announced forecast."
"Following considerable analysis and deliberation, our Board of Directors approved a suspension of the quarterly cash distribution, given sustained commodity price volatility and seasonally weak realized margins in our fuel products segment," continued Go. "While the decision to suspend the distribution was a difficult one, over time this action is expected to further support our liquidity position and financial flexibility. Our Board expects to evaluate a reinstatement of a quarterly cash distribution in due course, taking into account a number of factors, including our liquidity requirements, the relative health of cash flows from operations, balance sheet leverage, broader market conditions and the overall performance of our business."
"Our first quarter results were impacted by weakness in our fuel products segment, partially offset by continued stability in our core specialty products segment," continued Go. "During January and February, realized fuel margins were challenged in our niche products markets, similar to conditions evidenced during the fourth quarter 2015, while asphalt inventories increased ahead of the spring selling season, reducing cash receipts in the first quarter 2016."
"As previously disclosed, we have begun to implement a series of self-help initiatives in all areas of the organization, including projects that position us to increase the volume of cost-advantaged heavy Canadian crude oil processed at our facilities over the next two years," continued Go. "While the fourth quarter 2015 and the first quarter 2016 were challenging, we are keenly focused on addressing our liquidity needs and other measures to position the Partnership for improved performance."
The Partnership has prepared the estimated preliminary financial data presented above based on the most current information available to management. The Partnership's normal financial reporting processes with respect to the preliminary financial data have not been fully completed and Ernst & Young, LLP has not audited, reviewed, compiled or performed any procedures with respect to the accompanying preliminary financial data. As a result, the Partnership's actual financial results could be different from this preliminary financial data, and any differences could be material. These estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with U.S. GAAP.
The Partnership will report results for the first quarter 2016 before the market opens on May 5, 2016. A conference call is scheduled for 1:00 p.m. ET (12:00 p.m. CT) on Thursday, May 5, 2016 to discuss the financial and operational results for the first quarter 2016. Investors, analysts and members of the media interested in listening to the live presentation may call (866) 584-9671 and enter passcode 87644842. The telephonic replay will be available by calling (855) 859-2056 and entering passcode 87644842. The replay will be available beginning Thursday, May 5, 2016 until Thursday, May 12, 2016. A webcast of the earnings call and accompanying presentation slides will be available on the Partnership's website at http://www.calumetspecialty.com.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the senior secured notes, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such states.
About Calumet Specialty Products Partners, L.P.
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 has fourteen manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" 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) our expectation regarding our business outlook, including anticipated capital expenditures, (ii) preliminary estimates of selected financial results for the most recent quarterly period, (iii) our access to capital to fund capital expenditures, (iv) the closing date of the notes offering and the expected use of proceeds, and (v) expected benefits to the Partnership from the notes offering and distribution suspension. 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 expectations for future sales and operating results are based on our forecasts for our existing operations. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; drilling and completion activity in the onshore U.S.; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-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.
Non-GAAP Financial Measures
We include in this press release our preliminary estimate of the ranges of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items and provide reconciliations to our preliminary estimate of the range of net loss, one of our most directly comparable financial performance and liquidity measures, calculated and presented in accordance with GAAP.
Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items 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:
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 pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define "EBITDA" for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) impairment, (e) unrealized losses from mark-to-market accounting for hedging activities, (f) realized gains under derivative instruments excluded from the determination of net income (loss), (g) 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), (h) debt refinancing fees, premiums and penalties and (i) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark-to-market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income (loss) and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
We define Adjusted EBITDA, Excluding Special Items for any period as Adjusted EBITDA plus lower of cost or market ("LCM") inventory adjustment, last-in, first-out ("LIFO") inventory liquidation loss, early settlement of certain derivative instruments and Renewable Identification Numbers ("RINs") mark-to-market impact.
The definition of Adjusted EBITDA that is presented in this release reflects the calculation of "Consolidated Cash Flow" contained in the indentures governing our 7.625% senior notes due January 15, 2022, that were issued in November 2013 (the "2022 Notes"), our 6.5% senior notes due April 15, 2021, that were issued in March 2014 (the "2021 Notes") and our 7.75% senior notes due April 15, 2023 (the "2023 Notes"), that were issued in March 2015. We are required to report Consolidated Cash Flow to the holders of our 2021 Notes, 2022 Notes and 2023 Notes and Adjusted 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. Adjusted EBITDA presented in this press release for prior periods have been updated to reflect the use of the new calculations. Please see our filings with the SEC, including our 2015 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items should not be considered alternatives to net income (loss), operating income (loss), net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items, management recognizes and considers the limitations of these measurements. Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Our Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA, Excluding Special Items in the same manner. The following table presents a reconciliation of our preliminary estimate of the range of net loss to our preliminary estimate of the ranges of EBITDA, Adjusted EBITDA, and Adjusted EBITDA, Excluding Special Items.
Subject to the qualifications set forth above, our estimated range of Net loss, Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items for the Partnership for the three months ended March 31, 2016 is (in millions):
|
Three Months Ended | |||||
|
March 31, 2016 |
December 31, 2015 | ||||
|
Low Estimate |
High Estimate |
||||
|
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Adjusted EBITDA, Excluding Special Items: |
|||||
|
Net loss |
$ (83.0) |
$ (59.0) |
$ (116.8) | ||
|
Add: |
|||||
|
Interest expense |
31.0 |
29.0 |
25.0 | ||
|
Depreciation and amortization |
40.0 |
38.0 |
38.0 | ||
|
Income tax benefit |
— |
— |
(6.6) | ||
|
EBITDA |
$ (12.0) |
$ 8.0 |
$ (60.4) | ||
|
Add: |
|||||
|
Unrealized (gain) loss on derivative instruments |
(3.0) |
(6.0) |
11.8 | ||
|
Realized loss on derivatives, not included in net loss or |
(3.0) |
(1.0) |
(1.6) | ||
|
Amortization of turnaround costs |
10.0 |
8.0 |
9.6 | ||
|
Non-cash equity based compensation and other non-cash items |
3.0 |
1.0 |
3.0 | ||
|
Adjusted EBITDA |
$ (5.0) |
$ 10.0 |
$ (37.6) | ||
|
Special items: |
|||||
|
LCM inventory adjustment |
(12.0) |
(7.0) |
31.2 | ||
|
LIFO inventory liquidation loss |
— |
— |
21.7 | ||
|
Early settlement of certain derivative instruments |
— |
— |
(22.3) | ||
|
RINs mark-to-market impact (1) |
— |
— |
28.7 | ||
|
Adjusted EBITDA, Excluding Special Items |
$ (17.0) |
$ 3.0 |
$ 21.7 | ||
(1) Represents the impact of the period change in the market price of Renewable Identification Numbers ("RINs") when considering the RINs obligation that existed at the beginning of the period, excluding the impact of any sales of RINs that occurred. The increase in the RINs market price resulted from the announcement by the United States Environmental Protection Agency of updated renewable volume obligation blending requirements in November 2015, which were increased from the proposed levels under the Renewable Fuel Standard.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
4/15/2016Calumet Specialty Products Partners, L.P. Announces Pricing of $400 Million Private Placement of 11.5% Senior Secured Notes due 2021
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, April 15, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet") and its wholly owned subsidiary Calumet Finance Corp. announced today the pricing of their private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the "Securities Act"), of $400 million in aggregate principal amount of 11.5% senior secured notes due 2021 (the "Notes"). The Notes mature on January 15, 2021 and will be issued at 98.273 percent of par. This private placement is expected to close on April 20, 2016, subject to customary closing conditions.
Calumet intends to use the net proceeds from this private placement to repay borrowings outstanding under its revolving credit facility, to terminate or cash collateralize certain of its existing hedging obligations and for general partnership purposes. Calumet may re-borrow any amounts repaid under its revolving credit facility, subject to the terms of the facility, for general partnership purposes, which may include, among other things, funding working capital, capital expenditures and repurchases of debt.
The Notes will be guaranteed on a senior secured basis by all of Calumet's existing subsidiaries (other than Calumet Finance Corp. and its immaterial subsidiaries) that guarantee obligations under its revolving credit facility and certain of Calumet's future restricted subsidiaries. The Notes and the guarantees of the Notes will be secured by a first-priority lien on all of the fixed assets that secure Calumet's obligations under its secured hedge agreements. The securities to be sold have not been registered under the Securities Act, or any state securities laws, and unless so registered, the securities may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Calumet plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such states.
This press release includes statements regarding this private placement and the use of proceeds therefrom that may constitute forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Known material risks, uncertainties and other factors that can affect future results are discussed in Calumet's Annual Report on Form 10-K and other reports filed by Calumet from time to time with the Securities and Exchange Commission. Calumet undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
4/15/2016Calumet Specialty Products Partners, L.P. Announces The Election Of Stephen P. Mawer To Its General Partner's Board Of Directors
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, March 14, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. ("Calumet") (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced the election of Stephen P. Mawer to the Board of Directors of its general partner, Calumet GP, LLC.
Mr. Mawer, 51, retired as President of Koch Supply & Trading in 2014 following a 27-year career in commodities trading, risk management and refining operations. While at Koch, Mr. Mawer led global commodities trading and served as a senior member of the Koch Industries management team. During his 18-year career at Koch, Mr. Mawer successfully managed businesses engaged in the trading of crude oil, refined products, base metals, tanker freight, LNG and biofuels. Mr. Mawer also had responsibility for leading operations at the 80,000 bpd in Rotterdam, Netherlands refinery, which generated positive returns during his tenure. Earlier in his career, he held roles in crude oil trading at Ashland Petroleum, RWE AG and Shell.
"Steve Mawer brings extensive senior leadership experience and a deep knowledge of the global commodities markets to our Board of Directors," said Tim Go, Chief Executive Officer of Calumet. "As President of Koch Supply & Trading, Steve managed a leading global commodities trading platform that enabled Koch to effectively manage price and cost volatility within its business. As a member of our Board, Steve will provide strategic insights that will help Calumet to further mitigate enterprise risk, better optimize our assets and improve our returns on invested capital. We are excited to have Steve join our Board of Directors and look forward to working with him."
The Board of Directors of Calumet GP, LLC is currently comprised of seven members. Mr. Mawer will join the board as its eighth member and is expected to serve as an independent director.
Mr. Mawer holds both Bachelors and Masters degrees in Chemical Engineering from the University of Cambridge, England. He currently serves as a member of the board of directors at Zenith Energy Management, an international midstream company.
About Calumet Specialty Products Partners, L.P.
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 has fourteen manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/14/2016Calumet Specialty Products Partners, L.P. Names Bruce A. Fleming As New Executive Vice President Of Strategy & Growth
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, March 7, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today named Bruce A. Fleming to the newly created role of Executive Vice President of Strategy and Growth. Mr. Fleming will report directly to Tim Go, Chief Executive Officer of Calumet.
Mr. Fleming has more than 30 years of experience leading internal growth initiatives, business development and strategic acquisition advisory services for global energy companies. For the past 10 years, Mr. Fleming has served as the Vice President of Mergers & Acquisitions at Tesoro Corporation, where he led numerous business development engagements, including Tesoro's $2.5 billion acquisition of the Carson, California refinery, in addition to related logistics and marketing assets, from BP. Previously, as Tesoro's Vice President of Planning and Capital Management, he led the development of business processes required to effectively plan and execute major capital projects over a multi-year period. Earlier in his career, he held senior business development and planning roles with Amoco Oil and Orient Refining.
"Bruce Fleming is a key addition to the Calumet senior leadership team, an executive whose decades of deep operational expertise and proven track record in developing new business opportunities will be instrumental in positioning Calumet as the global leader in the petroleum-based specialty products markets," said Tim Go. "In his new role, Bruce will focus on a combination of internal growth initiatives that drive operational excellence and improved asset optimization, in addition to external initiatives that include strategic business alliances, acquisitions and targeted divestitures."
Mr. Fleming earned a Ph.D. in chemical engineering from Princeton University and a B.S. in chemical engineering from the University of Delaware. He is also a member of the Board of M&A Standards.
About Calumet Specialty Products Partners, L.P.
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 has fourteen manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 Securities and Exchange Commission ("SEC"), including our latest Annual Report on Form 10-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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/7/2016Calumet Specialty Products Partners, L.P. Extends 7.75% Senior Notes Exchange Offer
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, March 1, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet") and its wholly owned subsidiary, Calumet Finance Corp., announced today that it will extend its offer to exchange (the "Exchange Offer") up to $325,000,000 aggregate principal amount of its outstanding unregistered 7.75% Senior Notes due 2023 (the "Old Notes") for up to $325,000,000 aggregate principal amount of its 7.75% Senior Notes due 2023 that have been registered under the Securities Act of 1933, as amended. All other terms of the Exchange Offer, as described in the prospectus dated January 29, 2016, remain unchanged.
The Exchange Offer will now expire at 5:00 p.m. (ET) on March 7, 2016, unless further extended by Calumet. The Exchange Offer was scheduled to expire at 5:00 p.m. (ET) on February 29, 2016. Calumet has been advised by its exchange agent that, as of 5:00 p.m. (ET) on February 29, 2016, $324,150,000 in aggregate principal amount of Old Notes, representing approximately 99.74% of the outstanding aggregate principal amount of the Old Notes, had been tendered and not validly withdrawn. The Exchange Offer is being extended to provide holders of the Old Notes who have not yet tendered their notes for exchange additional time to do so.
This press release is for informational purposes only and is not an offer to buy or sell or the solicitation of an offer to buy or sell any of the securities described herein, nor shall there be any offer, solicitation or sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. A registration statement on Form S-4 relating to the Exchange Offer was declared effective by the Securities and Exchange Commission on January 28, 2016. The Exchange Offer was made only pursuant to the Exchange Offer documents that were distributed to holders of the Old Notes, including the prospectus dated January 29, 2016, and the related letter of transmittal.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet is headquartered in Indianapolis, Indiana, and owns specialty and fuel products facilities primarily located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, eastern Missouri and North Dakota.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
3/1/2016Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Feb. 25, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will attend the following upcoming investor conferences:
Bank of America Merrill Lynch 2016 Refining Conference
March 3, 2016
Bank of America Tower at One Bryant Park - New York, NY
Scotia Howard Weil 2016 Energy Conference
March 22-23, 2016
The Roosevelt New Orleans Hotel – New Orleans, LA
Calumet's latest investor presentation will be provided at these conferences. Prior to Calumet's attendance at the listed conference, the Partnership will post an electronic copy of the presentation it intends to use in the "Investor Relations" section of the Partnership's corporate website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has fourteen manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
2/25/2016Calumet Specialty Products Partners, L.P. Declares Quarterly Cash Distribution On Limited Partner Units And Provides Business Update
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Jan. 19, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet" or the "Partnership") a leading independent producer of specialty hydrocarbon and fuels products, today provided the following business update in response to recent volatility in the global capital markets and the broader energy complex:
(1) Calumet is reaffirming its objective of providing all unitholders a stable-to-growing quarterly cash distribution, consistent with expectations for long-term growth in Adjusted EBITDA and Distributable Cash Flow ("DCF"). Today, Calumet declared a quarterly cash distribution of $0.685 per unit, or $2.74 per unit on an annualized basis, for the quarter ended December 31, 2015 on all of its outstanding limited partner units. This distribution level is consistent with the amount paid to unitholders in the previous quarter. The distribution will be paid on February 12, 2016 to unitholders of record as of the close of business on February 2, 2016.
(2) Affiliates of Calumet's privately-held general partner remain highly supportive of Calumet and its long-term strategic growth plan. As of January 18, 2016, affiliates of Calumet's general partner owned 22% of the limited partner units outstanding. The general partner's affiliates represent the single largest investor group in the limited partner units. The economic interests of both the general partner affiliates and the limited partners remain closely aligned, given the affiliates' continued, long-term investment in Calumet.
(3) Calumet currently anticipates a more than 60% decline in total capital expenditures on a year-over-year basis in 2016. Calumet currently anticipates total capital expenditures to range between $125 million and $150 million in 2016. This decrease in anticipated capital expenditures is due in part to the conclusion of a multi-year organic growth project campaign in late 2015. The Partnership believes it has sufficient liquidity from cash on hand and from operations, as well as availability under its $1 billion asset based revolving credit facility, subject to current market conditions, to fund general business requirements.
The Partnership will report results for the fourth quarter and full-year 2015 on February 17, 2016 before the market opens. A conference call is scheduled for 1:00 p.m. ET (12:00 p.m. CT) on February 17, 2016 to discuss the financial and operational results for the fourth quarter and full-year 2015. Investors, analysts and members of the media interested in listening to the live presentation may call (866) 584-9671. The telephonic replay is available by calling (404) 537-3406 and entering passcode 28567856. The replay will be available beginning February 17, 2016 until February 24, 2016. A webcast of the call and accompanying presentation slides will be available on the Partnership's website at http://www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and has fourteen refining and manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
This press release includes statements that may constitute forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Factors that can affect future results are discussed in Calumet's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by Calumet from time to time with the Securities and Exchange Commission. Calumet undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Calumet's distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Calumet's distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
1/19/2016Calumet Specialty Products Partners, L.P. To Attend Upcoming Investor Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
INDIANAPOLIS, Jan. 4, 2016 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT), a leading independent producer of specialty hydrocarbon and fuels products, today announced that senior management will attend the following upcoming investor conferences:
Goldman Sachs Global Energy Conference 2016
January 6, 2016
Intercontinental Hotel – Miami, Florida
UBS MLP Conference 2016
January 13, 2016
St. Regis Hotel – Park City, Utah
Calumet's latest investor presentation will be provided at these conferences. Prior to Calumet's attendance at the listed conference, the Partnership will post an electronic copy of the presentation it intends to use in the "Investor Relations" section of the Partnership's corporate website at www.calumetspecialty.com.
About Calumet Specialty Products Partners, L.P.
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 has fourteen manufacturing facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas, New Jersey, Oklahoma, eastern Missouri and North Dakota.
Safe Harbor Statement
Certain statements and information in this press release may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. 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 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 acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels 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; 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 recently 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; 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 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 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.
SOURCE Calumet Specialty Products Partners, L.P.
Article Date
1/4/2016Projects & Assets
Direct Assets
Related Assets
Direct Projects
Superior Flexibility Project (subscriber access)Status: (subscriber access)
Juniper Gas-To-Liquids (GTL) Plant (subscriber access)
Status: (subscriber access)
Related Projects
Juniper Gas-To-Liquids (GTL) Plant (subscriber access)
Status: (subscriber access)
Parent Entities:
Calumet Specialty Products Partners
FERC Highlights
FERC Filings
Production & Forecasts
Subscribe now for access to Criterion Research's historical production and forecast production by company.
Production Hedges
Subscribe now for access to Criterion Research's hedge and analysis.