Calumet Provides Operational Update

Rhea-AI Summary

Calumet Specialty Products Partners provides operational update for Q3 2023

Positive

• Montana Renewables to replace steam drum in renewable hydrogen plant, completion expected in November
• MRL to pull forward regularly scheduled turnaround into November
• MRL expects to process over 12,000 barrels per day of feed in December
• MRL expects $1.25-1.45/gal of Adjusted EBITDA on untreated feed
• Shreveport facility completes maintenance, currently processing over 45,000 barrels per day of feed

Negative

• Loss of approximately 300,000 barrels of lube oil and wax sales due to maintenance at Shreveport facility

INDIANAPOLIS, Oct. 20, 2023 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "Company," "we," "our" or "us"), provided an operational update for the 3^rd quarter 2023. 

As previously disclosed, Montana Renewables, LLC ("MRL") identified a leak in the steam recovery system within its renewable hydrogen plant during the third quarter.  After entering the unit, the company decided to replace the steam drum rather than repair it.  The replacement is expected to be completed in November.  Given the additional time, MRL will opportunistically pull forward its regularly scheduled turnaround into November, which was previously scheduled for early 2024.  The facility is expected to continue to operate at reduced throughput until the turnaround begins.  Upon scheduled completion, MRL expects to process over 12,000 barrels per day of predominantly untreated feed in December and continues to expect $1.25-1.45/gal of Adjusted EBITDA on untreated feed.

Additionally, our Shreveport facility required maintenance during the quarter that resulted in a loss of approximately 300,000 barrels of lube oil and wax sales.  The maintenance has been completed, and the facility is currently processing over 45,000 barrels per day of feed. 

About Calumet
Calumet 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 Indianapolis, Indiana and operates twelve facilities throughout North America.

About Montana Renewables
Montana Renewables, LLC is an unrestricted subsidiary of Calumet located in Great Falls, MT. Montana Renewables is permitted to pretreat and convert 15,000 barrels per stream day ("bpsd"; permit capacity) of renewable feedstocks into low-emission sustainable alternatives that directly replace fossil fuel products. MRL is a leader in North America's energy transition and the largest Sustainable Aviation Fuel producer in the western hemisphere.  The renewable fuel products produced by Montana Renewables are distributed into renewable markets in the western half of North America.

 

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SOURCE Calumet Specialty Products Partners, L.P.

FAQ

What is the operational update provided by Calumet Specialty Products Partners?

Calumet Specialty Products Partners provided an operational update for the 3rd quarter 2023.

What is the status of the steam recovery system in Montana Renewables' renewable hydrogen plant?

A leak was identified in the steam recovery system and the steam drum is being replaced. The replacement is expected to be completed in November.

What is Montana Renewables planning to do with its regularly scheduled turnaround?

Montana Renewables will pull forward its regularly scheduled turnaround into November instead of early 2024.

What is the expected processing capacity of Montana Renewables in December?

Montana Renewables expects to process over 12,000 barrels per day of predominantly untreated feed in December.

What is the expected Adjusted EBITDA on untreated feed for Montana Renewables?

Montana Renewables expects $1.25-1.45/gal of Adjusted EBITDA on untreated feed.

What happened to the lube oil and wax sales at Calumet Specialty Products Partners' Shreveport facility?

Approximately 300,000 barrels of lube oil and wax sales were lost due to maintenance at the Shreveport facility.

What is the current processing capacity of Calumet Specialty Products Partners' Shreveport facility?

The Shreveport facility is currently processing over 45,000 barrels per day of feed.