Calumet, Inc · NASDAQ:CLMT
Calumet — Q3 2023 Earnings Presentation
17 slides from Calumet's earnings presentation, Nov 9, 2023
Slide 1: Third Quarter 2023 Financial Results
click to enter your slide title Third Quarter 2023 Financial Results November 9, 2023 1
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 November 9, 2023. The information in this Presentation includes certain “f
Slide 3: Performance Summary
Performance Summary Business Overview Business Segment 3Q2023 Adjusted EBITDA ($MM) ➢ Adjusted EBITDA of $75.5MM(1) Specialty Products and Solutions (SPS) $38.7 ➢ Specialties business ➢ Plugged heater tube in Shreveport’s CDW unit impacted Specialty Montana/Renewables (MR) $38.2 production volumes a
Slide 4: Transaction Overview: C-Corp Transition
Transaction Overview: C-Corp Transition ➢ Calumet announced plans to transition to a C-Corp to maximize future opportunities, access a broader base of investors and unlock shareholder value ➢ Transaction highlights: ➢ C-Corp transition will eliminate Incentive Distribution Rights (“IDRs”), align all
Slide 5: Specialty Products and Solutions
Specialty Products and Solutions © 2023 Calumet Specialty Products Partners, L.P. 5
Slide 6: Specialty Products and Solutions
Specialty Products and Solutions 3Q2022 2Q2023 3Q2023 ➢ Lost 300,000 barrels of Specialty production during the quarter at Adjusted EBITDA(1) ($MM) $131.7 $61.0 $38.7 Shreveport, plant has resumed normal operations Specialty Products Material Margin ($/bbl) $93.93 $77.37 $59.81 ➢ Purchased 3rd party
Slide 7: Performance Brands
Performance Brands © 2023 Calumet Specialty Products Partners, L.P. 7
Slide 8: Performance Brands
Performance Brands ➢ Financial results continue to trend positively; $24.3 mm YoY 3Q2022 2Q2023 3Q2023 increase in Adjusted EBITDA Sales ($MM) $76.4 $85.5 $75.2 ➢ Healthy industrial demand; retail demand choppy Adjusted EBITDA(1) ($MM) $8.5 $12.2 $13.2 ➢ Favorable market trend for increased power ef
Slide 9: Montana/Renewables
Montana/Renewables Facility operating in two services, 12,000 bpcd crude refinery and 12,000 bpcd renewables © 2023 Calumet Specialty Products Partners, L.P. 9
Slide 10: Montana/Renewables
Montana/Renewables 3Q2022 2Q2023 3Q2023 Adjusted EBITDA(1) ($MM) $11.3 $12.6 $38.2 Conventional Production (bpd) 27,242 11,887 11,742 Renewable Production (bpd) - 7,312 7,455 (1) See Appendix to this presentation for GAAP to Non-GAAP reconciliations Conventional Plant ➢ Legacy asphalt plant benefite
Slide 11: Appendix
click to enter your slide title Appendix 11
Slide 12: Installation of New Steam Drum at MRL
Installation of New Steam Drum at MRL New steam drum First tube being replaced Replacing all 469 tubes Install of steam drum and tubes complete © 2023 Calumet Specialty Products Partners, L.P. 12
Slide 13: Dilution Calculation
Dilution Calculation ➢ Total New Shares: 5.5 million ➢ Existing GP Units Being Exchanged: ~1.6 million ➢ Net New Shares at Closing: ~3.9 million ➢ Existing Common Units Outstanding (11/8/23): ~80.0 million ➢ Exchanged 1:1 for New Shares at Closing ➢ New Shares Issued at Closing for IDRs and GP Inter
Slide 14: RINs
RINs ➢ Q3 (non-cash) accounting gain = $173.4 MM related to RIN market price decrease ➢ The RINs liability on Calumet’s balance sheet is converted to a notional dollar value using RIN market prices on the last day of the quarter ➢ RIN obligations cannot be settled with the EPA financially; and marke
Slide 15: Capital Structure Overview
Capital Structure Overview Actual Actual Actual Actual Actual Actual Actual Actual ($ in millions) 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 06/30/23 09/30/23 Unrestricted Cash $ 38.1 $ 10.7 $ 27.5 $ 50.5 $ 35.2 $ 11.2 $ 36.0 $ 13.7 ABL Revolver Borrowings $ — $ 11.0 $ — $ 87.0 $ 104.0 $
Slide 16: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA ($ in millions) 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Net income (loss) attributable to partners $51.5 $(87.1) $(95.5) $(15.3) $15.7 $(70.0) $28.7 $(18.5) $103.0 Add: Depreciation and amortization 30.5 33.8 30.2
Slide 17: Reconciliation of Segment Gross Profit (Loss) to Segment Adjusted Gross Profit (Loss)
Reconciliation of Segment Gross Profit (Loss) to Segment Adjusted Gross Profit (Loss) ($ in millions, except per barrel data) 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Specialty Products and Solution segment gross profit $19.2 $17.7 $88.1 $123.4 $95.9 $110.3 $45.3 $158.9 LCM/LI