Calumet, Inc · NASDAQ:CLMT

Calumet — Q4 2024 Earnings Presentation

21 slides from Calumet's earnings presentation, Feb 28, 2025

  1. Slide 1: Fourth Quarter & Full Year 2024 Financial Results

    Fourth Quarter & Full Year 2024 Financial Results February 28, 2025

  2. Slide 2: Cautionary Statements

    CAUTIONARY STATEMENTS Forward-Looking Statements This Presentation has been prepared by Calumet, Inc. (the “Company,” “Calumet,” "we," "our" or like terms) as of February 28, 2025. The information in this Presentation includes certain “forward-looking statements.” These statements can be identified

  3. Slide 3: Performance Summary

    PERFORMANCE SUMMARY Key Strategic Milestones Business Segment Q4’24 Adjusted FY’24 Adjusted EBITDA ($MM) EBITDA ($MM)  Converted structure from a Master Limited Specialty Products and Solutions (SPS) $43.4 $193.6 Partnership to a C-Corp Montana / Renewables (MR) $10.9 $16.7  Closed and funded the

  4. Slide 4: Sale of Royal Purple Industrial

    SALE OF ROYAL PURPLE INDUSTRIAL  Announced definitive agreement with Lubrication Engineers for the sale of assets related to the Royal Purple industrial business Transaction Overview  Assets include product formulations, customer lists, and certain trademarks and brand licenses  Calumet to retain

  5. Slide 5: Strategic Recap

    STRATEGIC RECAP Business Execution Strategic Execution ■ Continued demonstration of leading commercial ■ Successful execution of C-Corp conversion position in Specialties and Montana Renewables ■ 10x increase in average daily trading volume ■ Highest sales volume recorded in Specialties ■ 22% YoY vo

  6. Slide 6: Specialty Products and Solutions Segment

    SPECIALTY PRODUCTS AND SOLUTIONS SEGMENT Q42024 Q42023 FY2024  Strong results in a more challenging market environment due to commercial excellence programs and improving Adjusted EBITDA ($MM) $43.4 $75.6 $193.6 operational reliability Specialty Products Material Margin ($/bbl) $62.95 $70.08 $65.87

  7. Slide 7: Performance Brands Segment

    PERFORMANCE BRANDS SEGMENT  Year two of business transformation built on a fully integrated Q42024 Q42023 FY2024 specialties strategy and implementation of commercial excellence programs Sales ($MM) $79.1 $70.8 $335.2  FY24 volume increased ~ 22% YoY Adjusted EBITDA ($MM) $16.3 $6.1 $57.4  FY24 A

  8. Slide 8: Montana / Renewables Segment

    MONTANA / RENEWABLES SEGMENT Q4’2024 Q4’2023 FY’2024 Adjusted EBITDA ($MM) $10.9 $(25.8) $16.7 Renewables at 86% (1) (2) $18.2 $(23.1) $24.9 Montana Asphalt (2) $(7.3) $(2.7) $(8.2) Renewable Production (bpd) 7,865 5,441 9,848 Conventional Production (bpd) 10,568 11,663 10,841 (1) Adjusted EBITDA re

  9. Slide 9: DOE Loan Funded on February 18, 2025

    DOE LOAN FUNDED ON FEBRUARY 18, 2025 Recapitalized Renewables Business Sources: DOE Tranche 1 $ 782 ■ Reduces existing servicing costs by ~ $80MM/yr Parent Equity Contribution $ 150 with removal of 3rd party lenders Total Sources $ 932 ■ DOE agreement allows pari debt at MRL to further Uses: reduce

  10. Slide 10: Renewable Diesel Market

    RENEWABLE DIESEL MARKET Supply Stack Biomass Based Diesel Gallons of Biomass Based Diesel 600,000,000 500,000,000 400,000,000 4.5 bn gpy 300,000,000 RVO not being met 200,000,000 ■ $1.50 / gallon Industry Market Index estimated based on: ■ Large biodiesel as market setting mechanism, and 100,000,000

  11. Slide 11: Near Term SAF Outlook

    NEAR TERM SAF OUTLOOK 4000 SAF Global Mandated Demand 3500 ■ 2024 global SAF supply absorbed by voluntary market ■ Conservatively held flat in this analysis but 3000 expect growth ahead of 2030 2500 MM Gal / Yr ■ 2025 supply: two large new entrants enter the market 2000 in initial year of global man

  12. Slide 12: Path to Deleveraging

    PATH TO DELEVERAGING ■ Free Cash Flow ■ Restricted Group mid-cycle free cash flow is $95MM -- $115MM (1) ■ Available for debt reduction ■ Montana Renewables free cash flow at $1.50/gal index margin is $65MM-$85MM ■ Available for MaxSAF expansion and debt reduction ■ Potential Portfolio Optimization

  13. Slide 13: Appendix

    Appendix © 2024 Calumet, Inc. All Rights Reserved. Not to be copied, shared, or reproduced in any media without the express written permission of Calumet, Inc.

  14. Slide 14: Capital Structure Overview

    CAPITAL STRUCTURE OVERVIEW Actual Actual Actual Actual Actual Actual Actual Actual Actual ($ in millions) 12/31/22 3/31/23 6/30/23 9/30/23 13/31/23 3/31/24 6/30/24 9/30/24 12/31/24 Unrestricted Cash $ 35.2 $ 11.2 $ 36.0 $ 13.7 $ 7.9 $ 23.9 $ 7.0 $ 34.6 $ 38.1 ABL Revolver Borrowings $ 104.0 $ 226.0

  15. Slide 15: 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 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Net income (loss) $ (95.5) $ (15.3) $ 14.6 $ (77.1) $ 18.6 $ (22.3) $ 99.8 $ (48.0) $ (41.6) $ (39.1) $ (100.6) $ (40.7) Add: Depreci

  16. Slide 16: Reconciliation of Segment Gross Profit to Adjusted Gross Profit

    RECONCILIATION OF SEGMENT GROSS PROFIT (LOSS) TO SEGMENT ADJUSTED GROSS PROFIT (LOSS) ($ in millions, except per barrel data) FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Specialty Products and Solutions segment gross profit $ 325.5 $ 109.9 $ 45.3 $ 158.9 $ 88.1 $ 85.3 $ 3

  17. Slide 17: Reconciliation of MRL and CMR Net Income to Adjusted EBITDA

    RECONCILIATION OF MRL AND CMR NET INCOME (LOSS) TO ADJUSTED EBITDA 2Q 2023 3Q 2023 4Q 2023 Montana / Montana / Montana / MRL CMR MRL CMR MRL CMR Renewables Renewables Renewables ($ in millions) Net income (loss) $ (41.5) $ 19.7 $ (21.8) $ (23.8) $ 67.8 $ 44.0 $ (106.3) $ (1.5) $ (107.8) Add: Depreci

  18. Slide 18: Reconciliation of MRL and CMR Net Income to Adjusted EBITDA

    RECONCILIATION OF MRL AND CMR NET INCOME (LOSS) TO ADJUSTED EBITDA 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Montana / Montana / Montana / Montana / MRL CMR MRL CMR MRL CMR MRL CMR Renewables Renewables Renewables Renewables ($ in millions) Net income (loss) $ (63.6) $ 9.8 $ (53.8) $ (22.7) $ (1.1) $ (23.8) $

  19. Slide 19: Calumet Restricted Group (Without MRL) Financial Pro Forma

    CALUMET RESTRICTED GROUP (WITHOUT MRL) FINANCIAL PRO FORMA ■ Restricted Group average cash generation before fixed charges of $285mm per year (1) (2) ■ After adding back non-cash RIN accrual of ~$49mm to average Adj. EBITDA of ~$236mm per year (1) ■ Restricted Group 2025 capex est. $50–70mm ■ Restri

  20. Slide 20: Montana Renewables Financial Pro Forma

    MONTANA RENEWABLES FINANCIAL PRO FORMA ■ $1.50 / gallon Industry Market Index estimated based on large biodiesel as market setting mechanism and 4.5bn gpy RVO ■ 100% MRL capture(1) of Market Index at 175mm gpy run rate ■ $0.70 / gallon MRL operating expense achieved YE 2024 ■ Pro forma ~$140mm MRL A

  21. Slide 21: Non G.A.A.P. Reconciliation of Adj. EBITDA

    NON G.A.A.P. RECONCILIATION OF ADJ. EBITDA ($ in millions) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 TTM 3Q 2024 6-Year Average Net income (loss) $ (43.6) $ (149.0) $ (256.4) $ (100.0) $ 287.1 $ 4.5 Add: Depreciation and amortization 129.4 119.7 123.0 110.2 128.8 130.2 LCM / LIFO (gain) loss (41.8) 28

Calumet — Q4 2024 Earnings Presentation on 6ix