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Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) is a premier independent producer of specialty hydrocarbon products. Based in Indianapolis, Indiana, Calumet operates through four primary segments: Specialty Products and Solutions, Montana/Renewables, Performance Brands, and Corporate. These segments enable Calumet to deliver a diverse suite of products, including lubricating oils, solvents, waxes, food-grade white oils, pharmaceutical-grade petrolatums, asphalt, and heavy fuel oils, as well as a variety of renewable fuel products.
The Specialty Products and Solutions segment is the cornerstone of Calumet's business, generating the majority of the company's revenue. This segment focuses on providing customer-tailored solutions and formulations, leveraging a highly integrated production complex located in Northwest Louisiana.
The Montana/Renewables segment, operated by Montana Renewables, LLC, is a leader in North America's energy transition. This segment is noted for its production of low-emission sustainable alternatives, including Sustainable Aviation Fuel (SAF). Located in Great Falls, Montana, the facility processes up to 15,000 barrels of renewable feedstock per day, making it the largest SAF producer in the western hemisphere.
The Performance Brands segment specializes in high-performance consumer products and brands, contributing significantly to Calumet's market presence and financial success.
Recent Achievements:
- In January 2024, Calumet announced two major financing updates, simplifying its inventory and working capital management through a new Supply and Offtake Agreement with J. Aron and an expanded Asset-Backed Loan facility.
- In February 2024, Calumet signed a Conversion Agreement to transition from a Master Limited Partnership (MLP) to a C-Corp, aiming to broaden investor participation and enhance shareholder value.
- In April 2024, the company resumed production at its Montana Renewables facility, achieving significant operational milestones and positioning itself for robust future performance.
Calumet's strong focus on renewable energy, strategic financial management, and robust operational capabilities position it as a key player in the specialty products market. As the company progresses through 2024, it anticipates several catalysts that could further enhance shareholder value and operational efficiency.
Calumet Inc. (NASDAQ: CLMT) reported a third quarter 2024 net loss of $100.6 million, or $1.18 per share, compared to net income of $99.8 million in Q3 2023. Adjusted EBITDA was $49.8 million, down from $75.4 million year-over-year. The company achieved significant operational milestones, including record production levels in its Specialties business and new SAF production volume records at Montana Renewables. Notable developments include completing conversion from MLP to C-Corp structure and receiving a $1.44 billion conditional commitment from the Department of Energy for Montana Renewables expansion.
Calumet announced early results of its private exchange offer for its 11.00% Senior Notes due 2025. As of November 5, 2024, approximately 97.5% ($354,399,000) of outstanding Old Notes were validly tendered. The company is offering new 11.00% Senior Notes due 2026 in exchange. Eligible holders who tendered before the Early Tender Time will receive $1,000 principal amount of New Notes for each $1,000 of Old Notes. The exchange offer requires a minimum participation of 80% of aggregate principal amount and will expire on November 21, 2024, unless extended.
Calumet (NASDAQ: CLMT) has announced its participation in the Goldman Sachs Carbonomics Conference scheduled for November 12, 2024, in London. The company will engage in one-on-one investor meetings and join a panel discussion focused on aviation industry decarbonization. Calumet, headquartered in Indianapolis, is a manufacturer of specialty branded products and renewable fuels, operating twelve facilities across North America, serving both consumer-facing and industrial markets.
Calumet (NASDAQ: CLMT) has announced it will release its Third Quarter 2024 financial results on November 8, 2024. The company will host a conference call at 9:00 AM ET on the same day to discuss financial and operational results. Investors and analysts can join via webcast or dial-in, with presentation slides available through the company's investor relations website. A conference call replay will be accessible shortly after the event through the company's website.
Montana Renewables (MRL), North America's largest SAF producer, has delivered its first 7,000-gallon shipment of Sustainable Aviation Fuel to Detroit Metropolitan Airport (DTW) via Dearborn's Buckeye Pipeline facility. The fuel, produced and blended by MRL, will be used by Delta Air Lines. This milestone marks the introduction of SAF at DTW and highlights the use of camelina oil as a non-food renewable feedstock, providing additional crop opportunities for farmers. MRL, an unrestricted subsidiary of Calumet (NASDAQ: CLMT), produces SAF, Renewable Diesel, Renewable Hydrogen, and Renewable Naphtha using sustainable feedstocks from Pacific Northwest farm operations.
Calumet (NASDAQ: CLMT) released preliminary Q3 2024 financial results, expecting a net loss between $110-90 million and Adjusted EBITDA of $45-55 million. The company reports total liquidity of approximately $290 million, including $35 million in cash. Montana Renewables processed 12,000 barrels per day of renewable feedstock, producing over 2,500 barrels per day of sustainable aviation fuel (SAF), with a record 3,200 barrels per day in September. Despite strong operations, margins were impacted by a $6 million feedstock price lag. The Specialties business faced challenges from Hurricane Beryl, resulting in approximately $8 million in lost opportunity. The DOE has awarded a conditional commitment for a $1.44 billion loan guarantee for Montana Renewables expansion.
Calumet Specialty Products Partners has launched a private exchange offer for its 11.00% Senior Notes due 2025. The company aims to exchange these notes for newly issued 11.00% Senior Notes due 2026, with support from holders of approximately 69% of the outstanding notes. For every $1,000 of old notes, eligible holders can receive $1,000 in new notes if tendered by November 5, 2024, or $950 if tendered after. The exchange offer requires a minimum participation of 80% of aggregate principal amount and expires on November 21, 2024. This move is designed to manage liquidity and extend debt maturity while maintaining the ability to retire the new notes in the near term.
Calumet (NASDAQ: CLMT) announced that its subsidiary, Montana Renewables (MRL), has received a $1.44 billion conditional commitment from the U.S. Department of Energy for a loan guarantee to expand its renewable fuels facility. The expansion aims to increase MRL's Sustainable Aviation Fuel (SAF) production capacity to 300 million gallons per year, making it one of the largest SAF producers globally.
The loan is structured in two tranches, with the first $778 million expected to close in Q4 2024. The expansion project, dubbed MaxSAF™, is set to be completed by 2028. It will include various enhancements such as a second renewable fuels reactor, increased renewable hydrogen production, and cogeneration capabilities. The project is expected to create 450 construction jobs and up to 40 operations jobs at its peak.
An economic impact study predicts substantial benefits for Montana, including supporting a population of 4,400 Montanans by 2028. The expansion aligns with national interests in low-emission sustainable alternatives and is expected to catalyze additional regional development in renewable feedstocks and related industries.
Calumet, Inc. (NASDAQ: CLMT) announced new funding agreements with Stonebriar Commercial Finance Key points include:
- Calumet Montana Refining, (CMR) entered a $150 million sale-leaseback agreement with Stonebriar, receiving $110 million initially and $40 million upon a future Eligible Capital Event.
- Montana Renewables, (MRL) modified existing agreements with Stonebriar to allow for early termination.
- The CMR Funding Agreement has an approximate 10.75% cost of capital once fully drawn.
- MRL's existing agreements with Stonebriar, worth $400 million, can now be terminated early upon receipt of proceeds from an Eligible Capital Event, including a potential U.S. Department of Energy loan guarantee.
- If MRL repurchases its assets from Stonebriar on November 1, it would cost approximately $403 million.
Calumet intends to use the proceeds to reduce outstanding borrowings under its revolving credit facility.
Montana Renewables, North America's largest SAF producer in 2024, has supplied the first Sustainable Aviation Fuel (SAF) for a flight departing from Minneapolis-St. Paul International Airport (MSP). The company provided 7,000 gallons of SAF made from Minnesota-grown winter camelina. Shell Aviation shipped the fuel to MSP, and Delta Air Lines designated flight 2732 from MSP to New York (LGA) as the symbolic first SAF-fueled departure.
Bruce Fleming, CEO of Montana Renewables, highlighted this as a significant milestone in air travel decarbonization and emphasized the pioneering use of camelina oil as a non-food renewable, offering additional cash crop potential for farmers. The initiative involved collaboration with Shell Aviation, the Minnesota SAF Hub, and other partners.
Montana Renewables, an unrestricted subsidiary of Calumet, Inc. (NASDAQ: CLMT), is based in Great Falls, Montana, and produces various renewable fuels including SAF, Renewable Diesel, Renewable Hydrogen, and Renewable Naphtha.
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