Calumet Stock Price, News & Analysis

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.

Calumet (NASDAQ: CLMT) announced a temporary delay in receiving the first tranche of approximately $782 million from the Department of Energy (DOE) loan facility for its Montana Renewables subsidiary. The delay, expected to last days or weeks, is intended to confirm alignment with White House priorities. The loan facility, which closed on January 10, will fund the construction and expansion of the renewable fuels facility in Great Falls, Montana.

According to an economic impact study by the University of Montana, the Great Falls site is projected to support a population of 4,400 Montanans by 2028. The expansion is expected to create 450 construction jobs and up to 40 operations jobs, while fostering regional development in renewable feedstocks and establishing a large-scale SAF industry in Montana and the Pacific Northwest.

Calumet (NASDAQ: CLMT) has announced significant financing activities, including a $100 million private placement of 9.75% Senior Notes due 2028 through its subsidiaries and the registration of a $65 million at-the-market (ATM) equity program.

CEO Todd Borgmann described the bond pricing as a targeted refinancing effort. The ATM equity facility, while not expected to be utilized immediately, provides a flexible tool for managing maturities. These financial moves, combined with a recently closed DOE loan and expected free cash flow, create a path to address the company's 2026 notes while focusing on strategic objectives including the MaxSAF project and balance sheet deleveraging.

Calumet (NASDAQ: CLMT) announced the pricing of a $100 million private placement of 9.75% Senior Notes due 2028, to be issued at 98% of par. The offering is expected to close on January 16, 2025. The new notes are a mirror issue to the existing $325 million 9.75% Senior Notes issued in June 2023, though they will be issued under a separate indenture with different CUSIP numbers.

The company plans to use the net proceeds to redeem a portion of its outstanding 11.00% Senior Notes due 2026, with the redemption expected on or before April 15, 2025. The securities will be offered exclusively to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, and have not been registered under the Securities Act.

Calumet (NASDAQ: CLMT) announced a private placement offering of $100 million in 9.75% Senior Notes due 2028. The offering, made through its subsidiaries, will be available to eligible purchasers under Rule 144A and Regulation S. The company plans to use the net proceeds to redeem a portion of its outstanding 11.00% Senior Notes due 2026, with redemption scheduled on or before April 15, 2025.

The new notes mirror the company's existing 9.75% Senior Notes due 2028, of which $325 million was issued on June 27, 2023. While having substantially identical terms, the new notes will be issued under a separate indenture with different CUSIP numbers. The securities will be offered exclusively to qualified institutional buyers and non-U.S. persons outside the United States.

Calumet (NASDAQ: CLMT) has announced the establishment of an at-the-market equity offering program (ATM Program) through which it may sell up to $65 million worth of common stock shares. The offering will be conducted through BMO Capital Markets Corp. as the Sales Agent, with shares being sold at prevailing market prices on the Nasdaq Global Select Market or other national securities exchanges.

The company plans to use the net proceeds for general corporate purposes, including debt repayment, working capital, and capital expenditures. The offering is being made under a prospectus supplement dated January 14, 2025, with no minimum fundraising requirement. Sales will be conducted as 'at the market offerings' under Rule 415, with the Sales Agent using commercially reasonable efforts to sell shares designated by Calumet.

Calumet (NASDAQ: CLMT) released preliminary Q4 2024 financial results, expecting a net loss between $54-24 million and Adjusted EBITDA of $45-60 million. The company reported significant operational progress, including:

- Successful completion of planned turnaround at Montana Renewables in November 2024
- Achievement of 50 million gallon annualized SAF run rate
- Reaching operational cost target of $0.70/gallon
- Receipt of $20 million in insurance proceeds from business interruption claims

The company projects 2025 capital expenditures of $50-70 million for specialties business and $10-20 million for Montana Renewables maintenance. MaxSAF project spending is expected at $40-60 million, with 45% funded from MRL operating cash flow and the remainder from DOE loan. Management emphasizes focus on deleveraging in 2025, aiming to pay down all 2026 notes.