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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 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.
Calumet (NASDAQ: CLMT) has announced its participation in the Barclays 38th Annual CEO Energy-Power Conference on September 4, 2024, in New York City. The company will be conducting one-on-one investor meetings throughout the day at the event.
Calumet is a manufacturer and formulator of specialty branded products and renewable fuels, serving a diverse range of consumer-facing and industrial markets. Headquartered in Indianapolis, Indiana, the company operates twelve facilities across North America.
This conference participation highlights Calumet's engagement with investors and its position in the energy and power sector. The event provides an opportunity for the company to discuss its operations, strategy, and market outlook with potential investors and industry analysts.
Calumet reported Q2 2024 results with a net loss of $39.1 million and Adjusted EBITDA of $66.8 million. Key highlights include:
- Successful conversion from MLP to C-Corp structure
- Montana Renewables achieved full production, producing ~7 million gallons of SAF
- Record volumes in Specialties and Renewables businesses
- Specialty Products and Solutions Adjusted EBITDA: $65.8 million
- Performance Brands Adjusted EBITDA: $14.1 million
- Montana/Renewables Adjusted EBITDA: $7.6 million
CEO Todd Borgmann noted strong operational performance in specialties and renewables, progress on DOE discussions for MaxSAF expansion, and focus on creating shareholder value. The company expects the C-Corp conversion to increase its shareholder base over time.
Calumet, Inc. (NASDAQ: CLMT) has announced its plans to release second quarter 2024 earnings on August 9, 2024. The company will host a conference call and webcast on the same day at 9:00 AM ET to discuss financial and operational results. Investors, analysts, and media representatives can join the webcast through a link available on Calumet's investor relations website. For those preferring to dial in, pre-registration is available, or participants can use the toll-free numbers provided. A replay of the conference call will be accessible on the company's website shortly after the event.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) announced the completion of its conversion from a master partnership (MLP) to a C-, now named Calumet, Inc.
Unitholders approved the change on July 9, 2024, and each of the 80,388,555 common units was exchanged for one share of the new common stock. Additionally, New Calumet issued 5,500,000 new shares and 2,000,000 warrants to buy shares at $20 each.
The new common stock will begin trading on Nasdaq on July 11, 2024, retaining the ticker symbol 'CLMT'.
This transition is expected to broaden Calumet's shareholder base by allowing institutional investors and passive indices, who previously could not invest in MLPs, to participate.
Calumet Specialty Products Partners (NASDAQ: CLMT) announced that its unitholders have voted to approve the conversion from a Master Partnership (MLP) to a C- This conversion received overwhelming support with 99.6% of votes cast in favor. Upon closing, unitholders will become shareholders of Calumet Inc. The conversion is expected to complete on July 10, 2024, and the new entity's stock will begin trading on Nasdaq under the ticker symbol 'CLMT' on July 11, 2024.
All other proposals at the special meeting held on July 9, 2024, were also approved. The results will be filed with the SEC on Form 8-K. CEO Todd Borgmann expressed gratitude to the leadership and unitholders for their support and emphasized the company's focus on driving shareholder value in the future.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) has scheduled a special meeting on July 9, 2024, for unitholders to vote on converting the company from a master partnership to a Delaware The board unanimously recommends voting in favor of the conversion. Only unitholders of record as of May 24, 2024, can vote. The meeting will be held at the Courtyard by Marriott Indianapolis West-Speedway. If approved, the conversion will finalize shortly after, contingent on meeting all conditions.
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