Calumet Provides Preliminary Third Quarter 2024 Selected Financial Results
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 (NASDAQ: CLMT) ha rilasciato i risultati finanziari preliminari per il terzo trimestre del 2024, prevedendo una perdita netta compresa tra i 110 e i 90 milioni di dollari e un EBITDA rettificato di 45-55 milioni di dollari. L'azienda riporta una liquidità totale di circa 290 milioni di dollari, inclusi 35 milioni in contante. Montana Renewables ha processato 12.000 barili al giorno di materie prime rinnovabili, producendo oltre 2.500 barili al giorno di carburante per aviazione sostenibile (SAF), con un record di 3.200 barili al giorno a settembre. Nonostante operazioni solide, i margini sono stati influenzati da un ritardo nel prezzo delle materie prime di 6 milioni di dollari. Il settore Specialties ha affrontato sfide a causa dell’uragano Beryl, portando a circa 8 milioni di dollari in opportunità perse. Il DOE ha concesso un impegno condizionale per una garanzia di prestito di 1,44 miliardi di dollari per l'espansione di Montana Renewables.
Calumet (NASDAQ: CLMT) ha publicado resultados financieros preliminares para el tercer trimestre de 2024, esperando una pérdida neta entre 110 y 90 millones de dólares y un EBITDA ajustado de 45-55 millones de dólares. La empresa reporta una liquidez total de aproximadamente 290 millones de dólares, incluyendo 35 millones en efectivo. Montana Renewables procesó 12,000 barriles por día de materia prima renovable, produciendo más de 2,500 barriles por día de combustible de aviación sostenible (SAF), con un récord de 3,200 barriles por día en septiembre. A pesar de operaciones sólidas, los márgenes se vieron afectados por un retraso en el precio de la materia prima de 6 millones de dólares. El negocio de Specialties enfrentó desafíos por el huracán Beryl, resultando en aproximadamente 8 millones de dólares en oportunidades perdidas. El DOE ha otorgado un compromiso condicional para una garantía de préstamo de 1.44 mil millones de dólares para la expansión de Montana Renewables.
Calumet (NASDAQ: CLMT)는 2024년 3분기 예비 재무 결과를 발표하며 순손실이 1억 1천만 달러에서 9천만 달러 사이가 될 것으로 예상하고 조정된 EBITDA는 4,500만 달러에서 5,500만 달러가 될 것으로 예측했습니다. 이 회사는 현금 3,500만 달러를 포함하여 약 2억 9천만 달러의 총 유동성을 보고했습니다. Montana Renewables는 하루 12,000배럴의 재생 원료를 가공하여 하루 2,500배럴 이상의 지속 가능한 항공 연료(SAF)를 생산했으며, 9월에는 기록적인 3,200배럴을 달성했습니다. 강력한 운영에도 불구하고 마진은 600만 달러의 원료 가격 지연의 영향을 받았습니다. Specialties 사업은 허리케인 베릴로 인해 약 800만 달러의 기회를 잃는 도전에 직면했습니다. DOE는 Montana Renewables의 확장에 대한 14억 4천만 달러 대출 보증을 조건부로 승인했습니다.
Calumet (NASDAQ: CLMT) a publié des résultats financiers préliminaires pour le troisième trimestre 2024, s'attendant à une perte nette comprise entre 110 et 90 millions de dollars et un EBITDA ajusté de 45 à 55 millions de dollars. L'entreprise rapporte une liquidité totale d'environ 290 millions de dollars, incluant 35 millions de dollars en espèces. Montana Renewables a traité 12 000 barils par jour de matières premières renouvelables, produisant plus de 2 500 barils par jour de carburant d'aviation durable (SAF), avec un record de 3 200 barils par jour en septembre. Malgré des opérations solides, les marges ont été impactées par un décalage de prix des matières premières de 6 millions de dollars. Le secteur des spécialités a dû faire face à des défis dus à l'ouragan Beryl, entraînant environ 8 millions de dollars de pertes d'opportunités. Le DOE a accordé un engagement conditionnel pour une garantie de prêt de 1,44 milliard de dollars pour l'expansion de Montana Renewables.
Calumet (NASDAQ: CLMT) hat vorläufige finanzielle Ergebnisse für das 3. Quartal 2024 veröffentlicht und erwartet einen Nettoverlust zwischen 110 und 90 Millionen Dollar sowie ein bereinigtes EBITDA von 45-55 Millionen Dollar. Das Unternehmen berichtet von einer Gesamtl liquidity von etwa 290 Millionen Dollar, einschließlich 35 Millionen Dollar in bar. Montana Renewables hat 12.000 Barrel pro Tag an erneuerbaren Rohstoffen verarbeitet und über 2.500 Barrel pro Tag an nachhaltigem Flugkraftstoff (SAF) produziert, mit einem Rekord von 3.200 Barrel pro Tag im September. Trotz starker Betriebsabläufe wurden die Margen durch einen Preisrückstand bei Rohstoffen in Höhe von 6 Millionen Dollar beeinträchtigt. Das Geschäftssegment Specialties sah sich Herausforderungen durch den Hurrikan Beryl gegenüber, was zu einem etwa 8 Millionen Dollar hohen entgangenen Umsatz führte. Das DOE hat eine bedingte Zusage für eine Kreditgarantie über 1,44 Milliarden Dollar für die Expansion von Montana Renewables vergeben.
- Montana Renewables achieved record SAF production of 3,200 barrels per day in September
- DOE conditional commitment of $1.44 billion loan guarantee for Montana Renewables expansion
- Strong liquidity position of $290 million
- Specialty margins remained resilient in Q3
- Expected Q3 2024 net loss of $90-110 million
- $6 million margin impact from feedstock price lag at Montana Renewables
- $8 million lost opportunity due to Hurricane Beryl production disruption
- Tightening fuel margins across the industry
Insights
The preliminary Q3 2024 results reveal significant challenges, with an expected net loss of
Key operational metrics show mixed performance: Montana Renewables achieved record SAF production of 3,200 barrels per day in September but faced a
Total liquidity position remains solid at
The renewable fuels segment shows promising operational progress despite headwinds. The 12,000 barrels per day renewable feedstock processing and increasing SAF production demonstrate strong execution of the renewable strategy. The planned November turnaround is strategically timed to minimize impact during the seasonal transition and tax credit changes.
The DOE loan commitment validates the company's renewable fuel strategy and significantly de-risks the expansion plans. This federal backing could accelerate Montana Renewables' growth trajectory and market position in the expanding sustainable aviation fuel market, particularly as airlines face increasing pressure to adopt cleaner fuel alternatives.
Based on preliminary data, the Company currently expects to report a net loss between
Calumet continued to demonstrate strong operations at Montana Renewables throughout the third quarter, processing approximately 12,000 barrels per day of renewable feedstock and producing over 2,500 barrels per day of sustainable aviation fuel ("SAF"). Further, a new SAF production record was achieved each month during the third quarter, culminating with approximately 3,200 barrels per day of SAF produced in September. Montana Renewables is expected to generate over
Our Specialties business operated well during the third quarter, with total production volume increasing versus the prior quarter despite experiencing unplanned downtime in July from Hurricane Beryl. As previously disclosed, this downtime resulted in a loss of approximately 500,000 barrels of production, resulting in a lost opportunity of roughly
Finally, the Company announced on October 16 that the
The Company has prepared the estimated preliminary financial data presented above based on the most current information available to management. The Company's normal financial reporting processes with respect to the preliminary financial data have not been fully completed and the Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the accompanying preliminary financial data. As a result, the Company's actual financial results could vary materially from this preliminary financial data. Investors should not place undue reliance on these preliminary financial data. These estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with
About Calumet
Calumet, Inc. (NASDAQ: CLMT) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. Calumet is headquartered in
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "will," "may," "intend," "believe," "expect," "outlook," "forecast," "anticipate," "estimate," "continue," "plan," "should," "could," "would," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding (i) preliminary estimates of selected financial results for the most recent quarterly period, (ii) our expectations regarding the loan facility (the "DOE Facility") that MRL expects to receive from the DOE LPO, including the timing, size and intended use of borrowings under such facility, (iii) our expectation that the DOE Facility will enable MRL to complete the MaxSAF™ construction and that such project will be completed on time and on budget, (iv) demand for finished products in markets we serve, (v) our expectation regarding our business outlook and cash flows, including with respect to the Montana Renewables business and our plans to de-leverage our balance sheet, (vi) our expectation regarding anticipated capital expenditures and strategic initiatives, and (vii) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our current expectations for future sales and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisition or disposition transactions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty products, fuels, renewable fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products, fuel products, and renewable fuel products that meet our customers' unique and precise specifications; the marketing of alternative and competing products; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the costs of complying with the Renewable Fuel Standard, including the prices paid for renewable identification numbers ("RINs"); shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market, business or political conditions, including inflationary pressures, instability in financial institutions, general economic slowdown or a recession, political tensions, conflicts and war (such as the ongoing conflicts in
For additional information regarding factors that could cause our actual results to differ from our projected results, please see our filings with the Securities and Exchange Commission ("SEC"), including the risk factors and other cautionary statements in Calumet Specialty Products Partners, L.P.'s (the "Partnership") latest Annual Report on Form 10-K and other filings made by the Partnership and the Company with the SEC.
We caution that these statements are not guarantees of future performance and you should not rely unduly on them, as they involve risks, uncertainties, and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. While our management considers these assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or forecast in our forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise, except to the extent required by applicable law. Certain public statements made by us and our representatives on the date hereof may also contain forward-looking statements, which are qualified in their entirety by the cautionary statements contained above.
Non-GAAP Financial Measures
Our management uses certain non-GAAP performance measures to analyze operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with generally accepted accounting principles ("GAAP"). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include performance measures along with certain key operating metrics.
We use the following financial performance measures:
EBITDA: We define EBITDA for any period as net income (loss) plus interest expense (including amortization of debt issuance costs), income taxes and depreciation and amortization. We believe net income (loss) is the most directly comparable GAAP measure to EBITDA.
Adjusted EBITDA: We define Adjusted EBITDA for any period as: EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark to market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (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, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) lower of cost or market ("LCM") inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the last in, first-out ("LIFO") method; (j) RINs mark-to-market adjustments; and (k) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.
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
These non-GAAP measures are used as supplemental financial measures by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to assess:
- the financial performance of our assets without regard to financing methods, capital structure or historical cost basis;
- the ability of our assets to generate cash sufficient to pay interest costs and support our indebtedness;
- our operating performance and return on capital as compared to those of other companies in our industry, without regard to financing or capital structure;
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities; and
- our operating performance excluding the non-cash impact of LCM and LIFO inventory adjustments, RINs mark-to-market adjustments, and depreciation and amortization.
We believe that these non-GAAP measures are useful to analysts and investors, as they exclude transactions not related to our core cash operating activities and provide metrics to analyze our ability to fund our capital requirements and to pay interest on our debt obligations. We believe that excluding these transactions allows investors to meaningfully analyze trends and performance of our core cash operations.
EBITDA and Adjusted EBITDA should not be considered alternatives to Net income (loss) or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA or Adjusted EBITDA management recognizes and considers the limitations of these measurements. EBITDA and Adjusted EBITDA do not reflect our liabilities for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two of several measurements that management utilizes. Moreover, our EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA and Adjusted EBITDA in the same manner. Please see the section of this release entitled "Non-GAAP Reconciliations" for tables that present reconciliations of EBITDA and Adjusted EBITDA to Net income (loss), our most directly comparable GAAP financial performance measure.
Subject to the qualifications set forth above, our estimated range of Net loss and Adjusted EBITDA for the Company for the three months ended September 30, 2024 is (in millions):
Three Months Ended September 30, 2024 | ||||||
Low Estimate | High Estimate | |||||
(In millions) | ||||||
Reconciliation of Net loss to Adjusted EBITDA | ||||||
Net loss | $ | (110.0) | $ | (90.0) | ||
Add: | ||||||
Depreciation and amortization | 46.0 | 44.0 | ||||
LCM / LIFO loss | 10.0 | 9.0 | ||||
Loss on impairment and disposal of assets | 1.0 | - | ||||
Interest expense | 60.0 | 55.0 | ||||
Unrealized gain on derivatives | (14.0) | (12.0) | ||||
RINs mark-to-market loss | 34.0 | 32.0 | ||||
Other non-recurring expenses | 13.0 | 11.0 | ||||
Equity-based compensation and other items | 4.0 | 7.0 | ||||
Income tax expense | 2.0 | 1.0 | ||||
Noncontrolling interest adjustments | (1.0) | (2.0) | ||||
Adjusted EBITDA | $ | 45.0 | $ | 55.0 | ||
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SOURCE Calumet, Inc.
FAQ
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