Calumet, Inc · NASDAQ:CLMT
Calumet — Q2 2023 Earnings Presentation
15 slides from Calumet's earnings presentation, Aug 4, 2023
Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results August 4, 2023 © 2023 Calumet Specialty Products Partners, L.P. All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Calumet Specialty Products Partners, L.P.
Slide 2: Cautionary Statements
Cautionary 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 Aug 4, 2023. The information in this Presentation includes certain “forward-looking statements.” Thes
Slide 3: Performance Summary
Performance Summary 2Q2023 Adjusted Business Overview Business Segment EBITDA ($MM) ➢ Adjusted EBITDA of $67.7MM(1) Specialty Products and Solutions (SPS) $61.0 ➢ Specialties business positioned for continued strong performance Montana/Renewables (MR) $12.6 ➢ Supportive margin environment continues
Slide 4: Specialty Products and Solutions
Specialty Products and Solutions © 2023 Calumet Specialty Products Partners, L.P. | 4
Slide 5: Specialty Products and Solutions
Specialty Products and Solutions ➢ Strong business foundation – constructive market environment and 2Q2022 1Q2023 2Q2023 commercial execution offset by downtime in Northwest LA Adjusted EBITDA(1) ($MM) $123.5 $76.4 $61.0 ➢ 500,000bbls of lost production due to extreme weather; Specialty Products Mat
Slide 6: Performance Brands
Performance Brands © 2023 Calumet Specialty Products Partners, L.P. | 6
Slide 7: Performance Brands
Performance Brands 2Q2022 1Q2023 2Q2023 ➢ Performance continues at expected levels Sales ($MM) $80.1 $78.8 $85.5 ➢ Industrial demand remains strong; consumer demand choppy Adjusted EBITDA(1) ($MM) $3.7 $16.4 $12.2 ➢ High-performance requirements in mining and marine markets creating growth opportuni
Slide 8: Montana/Renewables
Montana/Renewables Facility operating in two services, 12,000 bpcd crude refinery and 12,000 bpcd renewables © 2023 Calumet Specialty Products Partners, L.P. | 8
Slide 9: Montana/Renewables Segment
Montana/Renewables Segment 2Q2022 1Q2023 2Q2023 Adjusted EBITDA(1) ($MM) $68.6 $4.8 $12.6 Conventional Production (bpd) 27,242 11,795 11,887 Renewable Production (bpd) - 5,030 7,312 (1) See Appendix to this presentation for GAAP to Non-GAAP reconciliations ➢ Strong asphalt paving season for our rece
Slide 10: MRL Path Forward and Strategy Recap
MRL Path Forward and Strategy Recap ➢ Million barrel challenge ➢ Demonstrate full potential and economics in 3Q ➢ Ahead of plan as of July ➢ 2H 2023 venture decisions ➢ DOE Loan Application ➢ Expansion Final Investment Decision (“FID”) ➢ MAX SAF yield flex FID (aka “second reactor”) ➢ Technology/cat
Slide 11: Appendix
Fee CALUMET APPENDIX
Slide 12: Credit Metrics
Credit Metrics Fixed Charge Coverage Ratio(2) Net Debt to LTM Adjusted EBITDA(1) 4 14.0 12.8x 3.4x 3.5 12.0 3.0x 3.0x 3.0x 10.6x 3 10.0x 10.0 2.5x 2.5 8.2x 8.0 2.0x 2.0x 2 6.0 5.2x 5.4x 1.5 3.9x 4.2x 4.0x 4.0x 3.9x 4.0 3.2x 1 3.0x 3.0x 2.0 0.5 - 0 YE 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2
Slide 13: Capital Structure Overview
Capital Structure Overview Actual Actual Actual Actual Actual Actual Actual Actual ($ in millions) 09/30/21 12/31/21 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 06/30/23 Unrestricted Cash $ 10.8 $ 38.1 $ 10.7 $ 27.5 $ 50.5 $ 35.2 $ 11.2 $ 36.0 ABL Revolver Borrowings $ 48.1 $ — $ 11.0 $ — $ 87.0 $
Slide 14: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA ($ in millions) 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Net income (loss) attributable to partners $(78.4) $51.5 $(87.1) $(95.5) $(15.3) $15.7 $(70.0) $28.7 $(18.5) Add: Depreciation and amortization 29.5 30.5 33.
Slide 15: Reconciliation of Segment Gross Profit (Loss) to Segment Adjusted Gross Profit (Loss)
Reconciliation of Segment Gross Profit (Loss) to Segment Adjusted Gross Profit (Loss) ($ in millions, except per barrel data) 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Specialty Products and Solution segment gross profit $74.0 $19.2 $17.7 $88.1 $123.4 $95.9 $110.3 $45.3 LCM/LIF