Calumet Stock Price, News & Analysis

Montana Renewables (MRL), North America's largest SAF producer, has delivered its first 7,000-gallon shipment of Sustainable Aviation Fuel to Detroit Metropolitan Airport (DTW) via Dearborn's Buckeye Pipeline facility. The fuel, produced and blended by MRL, will be used by Delta Air Lines. This milestone marks the introduction of SAF at DTW and highlights the use of camelina oil as a non-food renewable feedstock, providing additional crop opportunities for farmers. MRL, an unrestricted subsidiary of Calumet (NASDAQ: CLMT), produces SAF, Renewable Diesel, Renewable Hydrogen, and Renewable Naphtha using sustainable feedstocks from Pacific Northwest farm operations.

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 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.