Calumet, Inc · NASDAQ:CLMT
Calumet — Barclays Emerging Growth, Climate Technology Companies – Company & Investor Meetings March (March 2024)
24 slides from Calumet's conference presentation, Mar 21, 2024
Slide 1: Barclays Emerging Growth, Climate Technology Companies – Company & Investor Meetings
click to e Barclays Emerging Growth, Climate Technology Companies –Company & Investor Meetings March 2024
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This Presentation has been prepared by Calumet Specialty Products Partners, L.P. (the “Company,” “Calumet,” “we,” “our” or like terms) and Montana Renewables, LLC (“MRL”) as of March 20, 2024. The information in this Presentation includes certain “for
Slide 3: Tax Disclosures
Tax Disclosures No Advice This Presentation has been prepared by Calumet as of March 20, 2024. This Presentation has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Calumet unitholders should consult thei
Slide 4: CLMT: Two Competitively Advantaged & Separable Businesses
CLMT: Two Competitively Advantaged & Separable Businesses Specialties Leading specialty products company with demonstrated earnings power and identified growth Unique, prominent customer base, brands, and assets perform through all economic cycles Industry leading integration and operational flexibi
Slide 5: The New Calumet: A Transformed Company
The New Calumet: A Transformed Company 2020 – 2023 2024 Priorities 2024-2025+ • Transformed business • Generate cash for deleveraging • Organic growth • Multiple operational records • MRL is fully operational identified • Resilience of business demonstrated during COVID • Use potential MRL monetizat
Slide 6: Calumet Strategic Progress 2023 Recap
Calumet Strategic Progress 2023 Recap $260.5 million of Adjusted EBITDA(1) Advanced Specialties commercial leadership position with 5th straight year of margin growth De-risked core elements of MRL business strategy Ability to purchase advantaged feed Advantaged product placement into Canada and Wes
Slide 7: Calumet Transformation in Final Phase
Calumet Transformation in Final Phase 2020 2021 2022 2023 2024 • MRL Vision Created • MRL financing and • Construction complete • Complete startup of • Demonstrate MRL earnings power construction and Startup RDU Renewable Hydrogen, • Potential DOE Loan • Warburg Pincus Pretreater, and SAF • Potentia
Slide 8: Financial Performance Summary
Financial Performance Summary Business Overview Full Year 2023 Adjusted EBITDA of $260.5MM (1) Continued strong results in Specialties business MRL completed turnaround in November 2023, renewable diesel plant returned to normal operations in December Remaining high priced feedstock inventory being
Slide 9: Years of Specialties Execution
5 Years of Specialties Execution Specialties Material Margin ($/BBL) $90 $80 $70 $60 $50 $40 $30 2019 2020 2021 2022 2023 Material Margin (SPS Specialty + PB) 5 consecutive years of Specialties material margin growth Combination of exceptional team, integrated assets, high customer focus, technology
Slide 10: Specialty Products and Solutions
Specialty Products and Solutions FY2022 FY2023 Adjusted EBITDA ($MM) $379.4 $251.2 Specialty Products Material Margin ($/bbl) $76.29 $72.59 Fuels & Asphalt Material Margin(1) ($/bbl) $21.07 $12.02 (1) Includes RVO accrual Sales Volume (bpd) 50,000 40,000 30,000 20,000 10,000 0 1Q2020 2Q2020 3Q2020 4
Slide 11: Performance Brands
Performance Brands FY2022 FY2023 2023 marked a return to expected financial performance Sales ($MM) $303.4 $310.3 Double digit growth in core industrial business lines Adjusted EBITDA ($MM) $20.2 $47.9 Mining, power and marine applications Consumer markets expected to stabilize in 2024 © 2024 Calume
Slide 12: Montana/Renewables
Montana/Renewables Facility operating in two services, 12,000 bpcd crude refinery and 12,000 bpcd renewables © 2024 Calumet Specialty Products Partners, L.P. 12
Slide 13: Montana/Renewables Segment
Montana/Renewables Segment FY2022 FY2023 Adjusted EBITDA ($MM) $75.8 $30.2 Conventional Production (bpd) 17,620 11,771 Renewable Production (bpd) 0 6,314 Specialty Asphalt Business 2023 demonstrated ability to generate 60% of historical Adjusted EBITDA with reduced footprint Renewables 2H2023 – stea
Slide 14: SAF – Fast Growing Energy Market
SAF – Fast Growing Energy Market Aviation is “last frontier” for decarbonization No legitimate alternatives to liquid fuel First mover in potentially fastest growing addressable market in energy “We estimate SAF could contribute around 65% of the reduction in aviation emissions needed to reach net z
Slide 15: Calumet Specialty Products Partners, LP
~) CALUMET. SPECIALTY PRODUCTS PARTNERS, LP
Slide 16: Transaction Overview: C-Corp Transition
Transaction Overview: C-Corp Transition On November 9, 2023, Calumet announced plans to transition to a C-Corp to maximize future opportunities, access a broader base of investors and unlock shareholder value Transaction highlights: C-Corp transition will eliminate Incentive Distribution Rights (“ID
Slide 17: Corporate Transition
Corporate Transition CLMT Unitholders CLMT unitholders to exchange all existing CLMT units in a 1-1 ratio for New CLMT New CLMT (C-Corp) common stock structured as a nontaxable “Reverse-Merger” transaction CLMT MLP © 2024 Calumet Specialty Products Partners, L.P. 17
Slide 18: Dilution Calculation
Dilution Calculation Post- Unit/Share Count Summary Now Conversion Existing LP Units / Common Stock 80.2 80.2 Existing GP Units 1.6— New Shares Issued at Closing—5.5 Total Economic Shares Outstanding 81.8 85.7 *4.5% Dilution (Excluding Warrants) Warrants: 2.0 million Strike Price $20 / share Term: 3
Slide 19: Constant Renewable Diesel Margin Framework
Constant Renewable Diesel Margin Framework Renewable Index Margin, $/gal $9.00 $9.00 $8.00 $8.00 $7.00 $7.00 $6.00 $6.00 $5.00 $5.00 $4.00 $4.00 $3.00 $3.00 $2.00 $2.00 $1.00 $1.00 $- $- $(1.00) $(1.00) $(2.00) $(2.00) $(3.00) $(3.00) $(4.00) $(4.00) $(5.00) $(5.00) $(6.00) $(6.00) $(7.00) $(7.00) 3
Slide 20: MRL – Significant Location Advantage
MRL – Significant Location Advantage Montana Product Advantage Montana Feedstock Advantage Calumet Feedstock: Lower cost of transportation into Great Falls Calumet Product: Best access to PNW, Canada Industry Feedstock: Higher cost of feedstock transportation to GC Industry Product: Great Falls, MT
Slide 21: RINs Legal Summary
RINs Legal Summary Congress included a small refinery exemption (SRE) in the Clean Air Act to address the disproportionate economic hardship of the Renewable Fuels Standard on small refiners like Calumet Calumet’s two small refineries consistently received SREs before 2019, and had submitted SRE pet
Slide 22: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA ($ in millions) 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Net income (loss) $(95.5) $(15.3) $14.6 $(77.1) $18.6 $(22.3) $99.8 $(48.0) Add: Depreciation and amortization 30.2 30.3 30.2 30.7 37.2 42.9 43.6 59.3 LCM / LIFO (ga
Slide 23: Capital Structure Overview
Capital Structure Overview Actual Actual Actual Actual Actual Actual Actual Actual ($ in millions) 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 06/30/23 09/30/23 12/31/23 Unrestricted Cash $ 10.7 $ 27.5 $ 50.5 $ 35.2 $ 11.2 $ 36.0 $ 13.7 $ 7.9 ABL Revolver Borrowings $ 11.0 $ — $ 87.0 $ 104.0 $ 226.
Slide 24: Specialty Products Partners, L.P.
SPECIALTY PRODUCTS PARTNERS, L.P.