Calumet Stock Price, News & Analysis

Calumet (NASDAQ: CLMT) has completed the sale of its Royal Purple® industrial business assets to Lubrication Engineers, Inc., a portfolio company of Aurora Capital Partners, for $110 million in cash. The sold assets include industrial gear lubricants, bio-environmental lubricants, and various industrial oils, along with an exclusive brand license for industrial applications.

The divested industrial segment generated approximately $29 million in total sales during 2024. Calumet retained ownership of the Porter, Texas manufacturing site and the consumer portion of Royal Purple®, which focuses on automotive products sold through national retail and specialty auto parts stores. The company plans to use the proceeds primarily for debt reduction.

Additionally, Calumet announced the termination of its at-the-market (ATM) equity offering program, which was announced in January 2025 but was never utilized.

Calumet (NASDAQ: CLMT) has announced plans to nominate Julio Quintana and Karen Narwold to its Board of Directors at the 2025 Annual Meeting of Stockholders. This announcement comes as current board members Jim Carter and Dan Sheets plan to retire following the completion of their terms.

The board transition follows several key achievements, including the company's successful conversion from a master partnership to a C-, the establishment of Montana Renewables, and securing a $1.4 billion Department of Energy loan. The company has also revamped its Specialties business to enhance cash flow generation.

The nominations, supported by Wasserstein Debt Opportunities (WDO), align with Calumet's strategic priorities focusing on deleveraging, cash flow growth, accretive asset monetization, and expanding Montana Renewables into a leading global producer of sustainable aviation fuel.

Calumet (NASDAQ: CLMT) has announced its participation in the Wolfe Research Refining Conference scheduled for March 6, 2025, in New York. The company will conduct one-on-one meetings with investors throughout the conference day.

Calumet, headquartered in Indianapolis, Indiana, specializes in manufacturing, formulating, and marketing specialty branded products and renewable fuels. The company serves various consumer-facing and industrial markets through its twelve facilities across North America.

Lubrication Engineers (LE) has announced a definitive agreement to acquire the industrial brands and products division of Royal Purple (RPI) from Calumet (NASDAQ: CLMT). The deal will make LE the exclusive manufacturer and seller of Royal Purple®-branded industrial products, while Calumet retains ownership of Royal Purple's consumer division and manufacturing assets.

RPI specializes in premium synthetic performance fluids, lubricants, and greases for industrial applications, including gear oils, bio-environmental lubricants, industrial engine oils, hydraulic lubricants, and compressor oils. The company serves various sectors including manufacturing, power generation, petrochemicals, energy, and marine industries.

This marks LE's first acquisition since partnering with Aurora Capital Partners in September 2023. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.

Calumet (NASDAQ: CLMT) reported a Q4 2024 net loss of $40.7 million ($0.47 per share) with Adjusted EBITDA of $56.6 million. The company announced the sale of its Royal Purple® industrial business for $110 million, while retaining the consumer portion.

Key Q4 2024 segment performance:

• Specialty Products: EBITDA $43.4M (vs $75.6M in Q4 2023)
• Performance Brands: EBITDA $16.3M (vs $6.1M in Q4 2023), with 15% volume growth
• Montana/Renewables: EBITDA $10.9M (vs -$25.8M in Q4 2023)

Montana Renewables received its first drawdown of $782M from a $1.44B DOE loan facility in February 2025. The expansion will increase production capacity to 300M gallons of Sustainable Aviation Fuel and 330M gallons of combined SAF and renewable diesel, with half of SAF capability online by 2026.

Calumet (NASDAQ: CLMT) announced a definitive agreement with a subsidiary of Lubrication Engineers, Inc., to sell assets related to the industrial portion of its Royal Purple® business for $110 million. Calumet will retain and continue to grow the consumer portion of the Royal Purple business and the production facility in Porter, TX. The transaction includes industrial gear lubricants, bio-environmental lubricants, stationary natural gas engine oils, hydraulic lubricants, and compressor oils, along with an exclusive license of the brand for industrial applications. In 2024, Royal Purple's industrial business generated approximately $29 million in sales. Proceeds from the sale will be used primarily to pay down debt. The transaction is expected to close in the first half of 2025, subject to customary closing conditions.

Calumet's CEO, Todd Borgmann, emphasized that the deal aligns with the company's strategy to deleverage its balance sheet. Moelis & Company acted as exclusive financial advisor, and Faegre Drinker served as M&A counsel.

Calumet (NASDAQ: CLMT) has announced its participation in the Raymond James Institutional Investors Conference scheduled for March 4, 2025, in Orlando, Florida. The company will conduct one-on-one investor meetings throughout the conference day.

Calumet is an Indianapolis-based manufacturer that specializes in producing and marketing specialty branded products and renewable fuels. The company serves various consumer-facing and industrial markets through its twelve North American facilities.

Calumet (NASDAQ: CLMT) announced that Montana Renewables (MRL), its unrestricted subsidiary, has received its first drawdown of $782 million from a $1.44 billion DOE guaranteed loan facility. The loan will fund the construction and expansion of MRL's renewable fuels facility, positioning it as one of the largest global Sustainable Aviation Fuel (SAF) producers.

The expansion will increase annual production capacity to approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel. The project includes several modular components, with a second renewable fuels reactor enabling half of the SAF capability to be online by 2026.

The loan is structured in two tranches: the first $782 million tranche was released for previously incurred expenses, accompanied by Calumet's $150 million equity investment. The second tranche of approximately $658 million will be disbursed during construction from 2025 through 2028. The 15-year loan carries an interest rate of U.S. Treasury rate plus 3/8%, with principal and interest payments deferred until project completion.

Calumet (NASDAQ: CLMT) has announced it will release its Fourth Quarter and Fiscal Year 2024 financial results on February 28, 2025. The company will host a conference call at 9:00 AM ET on the same day to discuss the results.

Interested parties can access the presentation through a webcast available on Calumet's investor relations website. Alternatively, participants can dial in toll-free at 1-844-695-5524 (US) or 1-412-317-0700 (International) after pre-registering for the call. A replay will be available on the company's website shortly after the event.