INDIANAPOLIS, Oct. 31, 2012 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," the "Company," "Calumet," "we," "our" or "us") reported net income for the quarter ended September 30, 2012 of $42.4 million compared to $19.6 million for the same quarter in 2011. These results include $22.1 million of noncash unrealized derivative losses as compared to $20.3 million of noncash unrealized derivative losses in the third quarter of 2011. For the nine months ended September 30, 2012, Calumet reported net income of $160.0 million compared to $16.2 million for the same period in 2011. These results for 2012 include $11.3 million of noncash unrealized derivative losses as compared to both $23.9 million of noncash unrealized derivative losses and $14.4 million of noncash debt extinguishment costs for the nine months ended September 30, 2011.
Earnings before interest expense, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA (as defined below in the section of this press release titled "Non-GAAP Financial Measures") were $91.4 million and $121.4 million, respectively, for the quarter ended September 30, 2012 as compared to $47.1 million and $70.5 million, respectively, for the same quarter in 2011. Distributable Cash Flow (as defined below in the section of this press release titled "Non-GAAP Financial Measures") for the third quarter of 2012 was $92.5 million compared to $50.5 million for the same quarter in 2011. The increase in Adjusted EBITDA quarter over quarter was primarily due to a $61.8 million increase in gross profit partially offset by a $6.3 million increase in realized derivative losses, and an increase in selling and transportation expense. See the section of this press release titled "Non-GAAP Financial Measures" and the included tables for a discussion of EBITDA, Adjusted EBITDA, Distributable Cash Flow and other non-generally accepted accounting principles ("non-GAAP") financial measures, definitions of these measures and reconciliations of such measures to the comparable U.S. generally accepted accounting principles ("GAAP") measures.
"Our third quarter results were driven by strength in our fuel products segment and the addition of Royal Purple to our specialty products segment. We continued to benefit from widened crack spreads from Canadian heavy and Bakken crude oil differentials to NYMEX WTI in the third quarter. We are also pleased to add the Montana Refining employees and business to Calumet starting in the fourth quarter," said Bill Grube, Calumet's Chief Executive Officer. "The acquisition of the Great Falls, Montana refinery further strengthens our niche refining portfolio and increases our access to Canadian heavy crude oil," said Grube.
Net income reported for quarter ended September 30, 2012 increased $22.8 million quarter over quarter primarily due to a $61.8 million increase in gross profit, as discussed below, partially offset by a $6.3 million increase in realized derivative losses, a $12.2 million increase in selling expenses ($6.3 million of which is noncash amortization expense), an $11.7 million increase in interest expense and a $4.7 million increase in transportation expense.
Gross profit by segment for the three and nine months ended September 30, 2012 and 2011 are as follows:
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
------------- -------------
2012 2011 2012 2011
---- ---- ---- ----
(Dollars in thousands, except per (Dollars in thousands, except per
barrel data) barrel data)
Specialty
products $90,575 $87,789 $245,662 $193,988
Fuel
products 67,831 8,812 125,796 42
------ ----- ------- ---
Total gross
profit (1) $158,406 $96,601 $371,458 $194,030
======== ======= ======== ========
Specialty
products
gross
profit per
barrel $24.37 $31.32 $23.10 $23.52
====== ====== ====== ======
Fuel
products
gross
profit per
barrel
(including
hedging
activities) $13.11 $3.01 $8.15 $0.01
====== ===== ===== =====
Fuel
products
gross
profit per
barrel
(excluding
hedging
activities) $21.15 $15.19 $17.07 $10.26
====== ====== ====== ======
(1) We define specialty products
and fuel products gross profit
as sales less the cost of crude
oil and other feedstocks and
other production-related
expenses, the most significant
portion of which include labor,
plant fuel, utilities, contract
services, maintenance,
depreciation and processing
materials.
The increase in specialty products segment gross profit of $2.8 million quarter over quarter was due primarily to a 32.6% increase in sales volume and lower operating costs, mainly repairs and maintenance, partially offset by a 7.2% decrease in the average selling price per barrel. Excluding incremental volumes from the Superior, Missouri, TruSouth and Royal Purple acquisitions, which reduced the average selling price per barrel due to increased asphalt sales, the specialty products average sales price per barrel decreased 4.7% due to weaker demand in the third quarter of 2012 for lubricating oils and our sales volume decreased 5.0% quarter over quarter.
The increase in fuel products segment gross profit of $59.0 million quarter over quarter was due primarily to an 76.4% increase in sales volume, mostly as a result of the Superior acquisition, a 5.9% decrease in the average cost of crude oil per barrel and a 0.7% increase in the average sales price per barrel (excluding the impact of realized hedging losses reflected in sales), partially offset by increased realized losses on derivatives of $7.4 million. Due to the extremely volatile nature of the pricing differentials between NYMEX WTI and Canadian heavy and Bakken crude oils during 2012, our NYMEX WTI crude oil swap contracts entered into to hedge the purchase of crude oil at our Superior refinery as part of our crack spread hedging program were no longer closely correlated and we were required, under U.S. GAAP, to discontinue hedge accounting on these derivatives as of January 1, 2012. Effective April 1, 2012, we also voluntarily discontinued hedge accounting for our fuel products swap contracts entered into to hedge fuel products sales at our Superior refinery. Primarily as a result of discontinuing hedge accounting on these derivative instruments, we recorded a loss of $10.2 million to realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2012. Total loss on settled derivative instruments reflected in gross profit, as discussed above, and realized gain (loss) on derivative instruments was $51.9 million for the third quarter of 2012, an increased loss of $13.8 million quarter over quarter.
The increase in specialty products segment gross profit of $51.7 million for the nine months ended September 30, 2012 compared to the same period in 2011 was due primarily to a 28.9% increase in sales volume and lower operating costs, mainly repairs and maintenance, partially offset by a 0.4% decrease in the average selling price. Excluding incremental volumes from the Superior, Missouri, TruSouth and Royal Purple acquisitions, which reduced the average selling price per barrel due to increased asphalt sales, the specialty products average sales price per barrel increased 3.1% compared to same period in 2011.
The increase in fuel products segment gross profit of $125.8 million for the nine months ended September 30, 2012 compared to the same period in 2011 was due primarily to a 99.5% increase in sales volume, mostly as a result of the Superior Acquisition, a 0.9% increase in the average sales price per barrel (excluding the impact of those realized hedging losses reflected in sales) and a 5.5% decrease in the average cost of crude oil per barrel partially offset by increased realized losses on derivatives of $57.2 million. Due to the extremely volatile nature of the pricing differentials between NYMEX WTI and Canadian heavy and Bakken crude oils during 2012, our NYMEX WTI crude oil swap contracts entered into to hedge the purchase of crude oil at our Superior refinery as part of our crack spread hedging program were no longer closely correlated and we were required, under U.S. GAAP, to discontinue hedge accounting on these derivatives as of January 1, 2012. Effective April 1, 2012, we also voluntarily discontinued hedge accounting for our fuel products swap contracts entered into to hedge fuel products sales at our Superior refinery. Primarily as a result of discontinuing hedge accounting on these derivative instruments, we recorded a gain of $20.5 million to realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2012. Total loss on settled derivative instruments reflected in gross profit, as discussed above, and realized gain (loss) on derivative instruments was $117.3 million for the nine months ended September 30, 2012, an increased loss of $30.9 million period over period.
Quarterly Distribution
On October 16, 2012, the Company declared a quarterly cash distribution of $0.62 per unit on all outstanding units or $38.2 million for the quarter ended September 30, 2012. The distribution will be paid on November 14, 2012 to unitholders of record as of the close of business on November 2, 2012. This quarterly distribution represents an increase of 5.1% over the second quarter of 2012 and a 24.0% increase from the third quarter of 2011.
Operations Summary
The following table sets forth unaudited information about Calumet's operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel in our fuel products segment.
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2012 2011 2012 2011
---- ---- ---- ----
Sales volume: (bpd) (bpd)
Specialty products 40,392 30,464 38,807 30,215
Fuel products 56,228 31,873 56,310 28,331
------ ------ ------ ------
Total (1) 96,620 62,337 95,117 58,546
Total feedstock
runs (2) 95,708 63,567 95,079 60,529
Facility
production: (3)
Specialty products:
Lubricating oils 14,966 15,017 14,773 14,316
Solvents 9,066 10,963 9,445 10,717
Waxes 1,294 1,434 1,268 1,234
Packaged and
synthetic
specialty products
(4) 1,584 - 1,342 -
Fuels 531 491 630 519
Asphalt and other
by-products 12,805 8,984 13,729 8,660
------ ----- ------ -----
Total 40,246 36,889 41,187 35,446
------
Fuel products:
Gasoline 23,565 9,741 23,018 9,660
Diesel 21,625 13,470 21,641 11,896
Jet fuel 4,481 4,872 4,321 4,495
Heavy fuel oils and
other 3,406 492 3,373 704
----- --- ----- ---
Total 53,077 28,575 52,353 26,755
------ ------ ------ ------
Total facility
production (3) 93,323 65,464 93,540 62,201
====== ====== ====== ======
____________
(1) Total sales volume includes
sales from the production at our
facilities and certain third-
party facilities pursuant to
supply and/or processing
agreements and sales of
inventories. Total sales volume
includes the sale of purchased
fuel product blendstocks such as
ethanol and biodiesel in our fuel
products segment sales. The
increase in total sales volume for
the three and nine months ended
September 30, 2012 compared to the
same periods in 2011 is due
primarily to incremental sales of
fuel products, asphalt and
packaged and synthetic specialty
products from the Superior,
Missouri, TruSouth and Royal
Purple acquisitions.
(2) Total feedstock runs
represent the barrels per day of
crude oil and other feedstocks
processed at our facilities and at
certain third-party facilities
pursuant to supply and/or
processing agreements. The
increase in the total feedstock
runs for the three and nine months
ended September 30, 2012 compared
to the same periods in 2011 is due
primarily to incremental feedstock
runs from the Superior refinery,
partially offset by decreased run
rates at our Shreveport refinery
during 2012 due to the April 28,
2012 shutdown of the ExxonMobil
pipeline serving this refinery for
a portion of its crude oil
requirements.
(3) Total facility production
represents the barrels per day of
specialty products and fuel
products yielded from processing
crude oil and other feedstocks at
our facilities and at certain
third-party facilities, pursuant
to supply and/or processing
agreements, including such
agreements with LyondellBasell.
The difference between total
facility production and total
feedstock runs is primarily a
result of the time lag between the
input of feedstock and production
of finished products and volume
loss. The increase in total
facility production for three and
nine months ended September 30,
2012 compared to the same periods
in 2011 is due primarily to the
operational items discussed above
in footnote 2 of this table.
(4) Represents packaged and
synthetic specialty products at
the Royal Purple, TruSouth and
Missouri facilities.
Derivatives Summary
The following table summarizes the derivative activity reflected in our unaudited condensed consolidated statements of operations and unaudited condensed statement of cash flows for the three and nine months end September 30, 2012 and 2011.
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2012 2011 2012 2011
---- ---- ---- ----
(In thousands) (In thousands)
Derivative loss reflected in sales $(49,572) $(61,125) $(180,227) $(165,801)
Derivative gain reflected in cost of sales 7,806 26,775 42,430 85,209
----- ------ ------ ------
Derivative loss reflected in gross profit $(41,766) $(34,350) $(137,797) $(80,592)
Realized gain (loss) on derivative instruments $(10,156) $(3,814) $20,486 $(5,798)
Unrealized loss on derivative instruments (22,101) (20,335) (11,337) (23,876)
Derivative loss reflected in interest expense - - - (702)
--- --- --- ----
Total derivative loss on unaudited condensed
consolidated statements of operations $(74,023) $(58,499) $(128,648) $(110,968)
======== ======== ========= =========
Total loss on derivatives settlements $(50,429) $(38,939) $(116,408) $(82,727)
======== ======== ========= ========
Revolving Credit Facility Capacity
On September 30, 2012, Calumet had availability under its revolving credit facility of $477.8 million, based on a $658.5 million borrowing base and $180.7 million in outstanding standby letters of credit. Calumet believes it will continue to have sufficient cash flow from operations and borrowing capacity to meet its financial commitments, minimum quarterly distributions to unitholders, debt service obligations, contingencies and anticipated capital expenditures.
About the Partnership
Calumet is a master limited partnership and is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and has ten facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, southeastern Texas and eastern Missouri.
A conference call is scheduled for 1:00 p.m. ET (12:00 p.m. CT) on Wednesday, October 31, 2012, to discuss the financial and operational results for the third quarter of 2012. Anyone interested in listening to the presentation may call 866-543-6408 and enter passcode 22754984. For international callers, the dial-in number is 617-213-8899 and the passcode is 22754984.
The telephonic replay of the conference call is available in the United States by calling 888-286-8010 and entering passcode 95789452. International callers can access the replay by calling 617-801-6888 and entering passcode 95789452. The replay will be available beginning Wednesday, October 31, 2012, at approximately 3:00 p.m. ET (2:00 p.m. CT) until Wednesday, November 7, 2012.
The information contained in this press release is available on Calumet's website at http://www.calumetspecialty.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release concerning results for the three and nine months ended September 30, 2012 may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels that meet our customers' unique and precise specifications; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of recently acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market or business conditions.
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with Securities and Exchange Commission ("SEC"), including our 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow, and provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to net income (loss) and net cash provided by (used in) operating activities, our most directly comparable financial performance and liquidity measures calculated and presented in accordance with GAAP.
EBITDA, Adjusted EBITDA and Distributable Cash Flow are used as supplemental financial measures by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to assess:
-- the financial performance of our assets without regard to financing
methods, capital structure or historical cost basis;
-- the ability of our assets to generate cash sufficient to pay interest
costs and support our indebtedness;
-- our operating performance and return on capital as compared to those of
other companies in our industry, without regard to financing or capital
structure; and
-- the viability of acquisitions and capital expenditure projects and the
overall rates of return on alternative investment opportunities.
We believe that these non-GAAP measures are useful to analysts and investors as they exclude transactions not related to our core cash operating activities and provide metrics to analyze our ability to pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) unrealized losses from mark to market accounting for hedging activities, (e) realized gains under derivative instruments excluded from the determination of net income (loss), (f) non-cash equity based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss), (g) debt refinancing fees, premiums and penalties and (h) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
We define "Distributable Cash Flow" for any period as Adjusted EBITDA less replacement capital expenditures, turnaround costs, cash interest expense (consolidated interest expense less non-cash interest expense) and income tax expense. Distributable Cash Flow is used by us, our investors and analysts to analyze our ability to pay distributions.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release have been updated to reflect the calculation of "Consolidated Cash Flow" contained in the indentures governing our 9 3/8% senior notes due May 1, 2019 that were issued in April and September 2011 (the "2019 Notes") and the indenture governing our 9 5/8% senior notes due August 1, 2020 that were issued in June 2012 (the "2020 Notes"). We are required to report Consolidated Cash Flow to our holders of the 2019 Notes and 2020 Notes and Adjusted EBITDA to the lenders under our revolving credit facility, and these measures are used by them to determine our compliance with certain covenants governing those debt instruments. Adjusted EBITDA and Distributable Cash Flow that are presented in this press release for prior periods have been updated to reflect the use of the new calculations. Please see our filings with the SEC, including our 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net income, operating income, net cash provided by (used in) operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Distributable Cash Flow do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of the measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of both net income to EBITDA, Adjusted EBITDA and Distributable Cash Flow, and Distributable Cash Flow, Adjusted EBITDA and EBITDA to net cash provided by (used in) operating activities, our most directly comparable GAAP financial performance and liquidity measures, for each of the periods indicated.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit data)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
------------- -------------
2012 2011 2012 2011
---- ---- ---- ----
(Unaudited) (Unaudited)
Sales $1,179,818 $777,780 $3,436,400 $2,116,790
Cost of sales 1,021,412 681,179 3,064,942 1,922,760
--------- ------- --------- ---------
Gross profit 158,406 96,601 371,458 194,030
Operating costs and expenses:
Selling 15,002 2,809 26,668 8,220
General and administrative 12,810 11,339 41,333 26,923
Transportation 28,404 23,696 80,903 69,462
Taxes other than income taxes 1,723 1,683 5,371 4,246
Insurance recoveries - - - (8,698)
Other 1,613 543 4,856 1,781
----- --- ----- -----
Operating income 98,854 56,531 212,327 92,096
------ ------ ------- ------
Other income (expense):
Interest expense (24,271) (12,577) (61,247) (30,602)
Debt extinguishment costs - - - (15,130)
Realized gain (loss) on derivative instruments (10,156) (3,814) 20,486 (5,798)
Unrealized loss on derivative instruments (22,101) (20,335) (11,337) (23,876)
Other 268 45 382 148
--- --- --- ---
Total other expense (56,260) (36,681) (51,716) (75,258)
------- ------- ------- -------
Net income before income taxes 42,594 19,850 160,611 16,838
Income tax expense 178 236 610 674
--- --- --- ---
Net income $42,416 $19,614 $160,001 $16,164
======= ======= ======== =======
Allocation of net income:
Net income $42,416 $19,614 $160,001 $16,164
Less:
General partner's interest in net income 848 392 3,200 323
General partner's incentive distribution rights 1,637 40 3,256 40
Nonvested share based payments 262 - 947 -
--- --- --- ---
Net income available to limited partners $39,669 $19,182 $152,598 $15,801
======= ======= ======== =======
Weighted average limited partner units outstanding:
Basic 57,746 41,828 54,827 39,352
====== ====== ====== ======
Diluted 57,826 41,837 54,867 39,368
====== ====== ====== ======
Limited partners' interest basic and diluted net income per unit $0.69 $0.46 $2.78 $0.40
===== ===== ===== =====
Cash distributions declared per limited partner unit $0.59 $0.50 $1.68 $1.45
===== ===== ===== =====
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, 2012 December 31, 2011
------------------ -----------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $190,538 $64
Accounts receivable, net 264,141 212,065
Inventories 494,112 497,740
Derivative assets - 58,502
Prepaid expenses and other
current assets 10,315 8,179
Deposits 3,949 2,094
----- -----
Total current assets 963,055 778,644
Property, plant and
equipment, net 863,364 842,101
Goodwill 161,150 48,335
Other intangible assets, net 203,752 22,675
Other noncurrent assets, net 47,840 40,303
------ ------
Total assets $2,239,161 $1,732,058
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable $336,034 $302,826
Accrued interest payable 30,843 10,500
Accrued salaries, wages and
benefits 19,507 13,481
Taxes payable 16,710 13,068
Other current liabilities 9,202 4,600
Current portion of long-term
debt 783 551
Derivative liabilities 95,802 43,581
------ ------
Total current liabilities 508,881 388,607
Pension and postretirement
benefit obligations 18,315 26,957
Other long-term liabilities 1,132 1,055
Long-term debt, less current
portion 862,513 586,539
------- -------
Total liabilities 1,390,841 1,003,158
Commitments and contingencies
Partners' capital:
Partners' capital 906,998 690,373
Accumulated other
comprehensive income (loss) (58,678) 38,527
------- ------
Total partners' capital 848,320 728,900
------- -------
Total liabilities and
partners' capital $2,239,161 $1,732,058
========== ==========
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Nine Months Ended
September 30,
-------------
2012 2011
---- ----
Operating activities (Unaudited)
Net income $160,001 $16,164
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 63,828 43,644
Amortization of turnaround
costs 10,315 8,288
Non-cash interest expense 4,409 2,363
Non-cash debt extinguishment
costs - 14,401
Provision for doubtful
accounts 296 255
Unrealized loss on derivative
instruments 11,337 23,876
Non-cash equity based
compensation 5,108 3,298
Other non-cash activities 1,100 (1,468)
Changes in assets and liabilities:
Accounts receivable (32,370) (44,714)
Inventories 33,678 (109,787)
Prepaid expenses and other
current assets (1,628) (1,926)
Derivative activity 904 4,928
Turnaround costs (14,141) (8,849)
Deposits (1,842) (426)
Other assets - (197)
Accounts payable 26,845 32,158
Accrued interest payable 20,343 22,758
Accrued salaries, wages and
benefits 2,327 2,917
Taxes payable 3,444 1,676
Other liabilities 2,851 (9,082)
Pension and postretirement
benefit obligations (7,365) (836)
------ ----
Net cash provided by (used in)
operating activities 289,440 (559)
Investing activities
Additions to property, plant
and equipment (36,735) (30,667)
Proceeds from insurance
recoveries -equipment - 1,942
Cash paid for acquisitions,
net of cash acquired (379,048) (441,626)
Proceeds from sale of
property, plant and equipment 1,960 219
----- ---
Net cash used in investing
activities (413,823) (470,132)
Financing activities
Proceeds from borrowings -
revolving credit facility 1,147,778 1,152,898
Repayments of borrowings -
revolving credit facility (1,147,753) (1,107,730)
Repayments of borrowings -
term loan credit facility - (367,385)
Payments on capital lease
obligations (1,179) (802)
Proceeds from public offerings
of common units, net 146,558 281,870
Proceeds from senior notes
offerings 270,187 586,000
Debt issuance costs (7,542) (23,140)
Contributions from Calumet GP,
LLC 3,122 6,011
Units repurchased for phantom
unit grants (2,110) (620)
Distributions to partners (94,204) (56,382)
------- -------
Net cash provided by financing
activities 314,857 470,720
------- -------
Net increase in cash and cash
equivalents 190,474 29
Cash and cash equivalents at
beginning of period 64 37
--- ---
Cash and cash equivalents at
end of period $190,538 $66
======== ===
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA ANDDISTRIBUTABLE CASH FLOW
(In thousands)
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
------------- -------------
2012 2011 2012 2011
---- ---- ---- ----
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Distributable Cash Flow:
(Unaudited) (Unaudited)
Net income $42,416 $19,614 $160,001 $16,164
Add:
Interest expense 24,271 12,577 61,247 30,602
Debt extinguishment costs - - - 15,130
Depreciation and amortization 24,542 14,680 63,828 43,644
Income tax expense 178 236 610 674
--- --- --- ---
EBITDA $91,407 $47,107 $285,686 $106,214
------- ------- -------- --------
Add:
Unrealized loss on derivatives 22,101 20,335 11,337 23,876
Realized gain (loss) on derivatives, 1,494 (771) 904 4,366
not included in net income
Amortization of turnaround costs 3,154 2,542 10,315 8,288
Non-cash equity based compensation 3,233 1,335 5,108 3,298
----- ----- ----- -----
Adjusted EBITDA $121,389 $70,548 $313,350 $146,042
-------- ------- -------- --------
Less:
Replacement capital expenditures (1) 6,063 6,608 15,204 14,204
Cash interest expense (2) 22,621 11,869 56,838 28,239
Turnaround costs - 1,348 14,141 8,849
Income tax expense 178 236 610 674
--- --- --- ---
Distributable Cash Flow $92,527 $50,487 $226,557 $94,076
======= ======= ======== =======
(1) Replacement capital
expenditures are defined as
those capital expenditures
which do not increase operating
capacity or reduce operating
costs and exclude turnaround
costs.
(2) Represents consolidated
interest expense less non-cash
interest expense.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED BY (USED IN)
OPERATINGACTIVITIES
(In thousands)
Nine Months Ended September 30,
2012 2011
---- ----
Reconciliation of Distributable Cash Flow,
Adjusted EBITDA and EBITDA to net cash provided
by (used in) operating activities:
(Unaudited)
Distributable Cash Flow $226,557 $94,076
Add:
Replacement capital expenditures
(1) 15,204 14,204
Cash interest expense (2) 56,838 28,239
Turnaround costs 14,141 8,849
Income tax expense 610 674
--- ---
Adjusted EBITDA $313,350 $146,042
======== ========
Less:
Unrealized loss on derivative
instruments 11,337 23,876
Realized gain on derivatives,
not included in net income 904 4,366
Amortization of turnaround costs 10,315 8,288
Non-cash equity based
compensation 5,108 3,298
----- -----
EBITDA $285,686 $106,214
======== ========
Add:
Unrealized loss on derivative
instruments 11,337 23,876
Cash interest expense (2) (56,838) (28,239)
Non-cash equity based
compensation 5,108 3,298
Amortization of turnaround costs 10,315 8,288
Income tax expense (610) (674)
Provision for doubtful accounts 296 255
Debt extinguishment costs - (729)
Changes in assets and liabilities:
Accounts receivable (32,370) (44,714)
Inventories 33,678 (109,787)
Other current assets (3,470) (2,352)
Turnaround costs (14,141) (8,849)
Derivative activity 904 4,928
Other assets - (197)
Accounts payable 26,845 32,158
Other liabilities 28,965 18,269
Other, including changes in
noncurrent liabilities (6,265) (2,304)
------ ------
Net cash provided by (used in)
operating activities $289,440 $(559)
======== =====
(1) Replacement capital
expenditures are defined as
those capital expenditures
which do not increase operating
capacity or reduce operating
costs and exclude turnaround
costs.
(2) Represents consolidated
interest expense less non-cash
interest expense.
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
COMMODITY DERIVATIVE INSTRUMENTS
As of September 30, 2012
Fuel Products Segment
The following table provides a summary of Calumet's derivatives and implied crack spreads for their crude oil, diesel, jet and gasoline swaps, as well
as, Calumet's Canadian heavy crude oil versus NYMEX WTI crude oil basis swaps as of September 30, 2012.
Crude Oil and Implied Crack Spread
Fuel ($/Bbl)
Products
Swap
Contracts by
Expiration
Dates Barrels BPD
------------- ------- --- ---------------------
Fourth
Quarter 2012 2,622,000 28,500 $20.85
Calendar Year
2013 7,605,000 20,836 26.00
Calendar Year
2014 4,195,000 11,493 26.07
Calendar Year
2015 3,467,500 9,500 26.21
--------- -----
Totals 17,889,500
Average price $25.30
The following table provides a summary of Calumet's Canadian heavy crude oil versus NYMEX WTI crude oil basis swaps as of September 30, 2012.
Crude Oil Barrels Average Differential to
Basis Swap Purchased NYMEX WTI ($/Bbl)
Contracts by
Expiration
Dates BPD
------------- ---------- --- -----------------------
Fourth
Quarter 2012 184,000 2,000 $(23.50)
Calendar Year
2013 730,000 2,000 (23.75)
------- ------
Totals 914,000
Average price $(23.70)
Specialty Products Segment
The following table provides a summary of Calumet's derivatives for its natural gas purchases as of September 30, 2012.
Natural Gas Swap Contracts by Expiration
Dates MMBtu $/MMBtu
---------------------------------------- ----- -------
Fourth Quarter 2012 600,000 $4.08
------- -----
Totals 600,000
Average price $4.08
SOURCE Calumet Specialty Products Partners, L.P.
SOURCE: Calumet Specialty Products Partners, L.P.
PR Newswire
INDIANAPOLIS, Oct. 31, 2012
INDIANAPOLIS, Oct. 31, 2012 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," the "Company," "Calumet," "we," "our" or "us") reported net income for the quarter ended September 30, 2012 of $42.4 million compared to $19.6 million for the same quarter in 2011. These results include $22.1 million of noncash unrealized derivative losses as compared to $20.3 million of noncash unrealized derivative losses in the third quarter of 2011. For the nine months ended September 30, 2012, Calumet reported net income of $160.0 million compared to $16.2 million for the same period in 2011. These results for 2012 include $11.3 million of noncash unrealized derivative losses as compared to both $23.9 million of noncash unrealized derivative losses and $14.4 million of noncash debt extinguishment costs for the nine months ended September 30, 2011.
Earnings before interest expense, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA (as defined below in the section of this press release titled "Non-GAAP Financial Measures") were $91.4 million and $121.4 million, respectively, for the quarter ended September 30, 2012 as compared to $47.1 million and $70.5 million, respectively, for the same quarter in 2011. Distributable Cash Flow (as defined below in the section of this press release titled "Non-GAAP Financial Measures") for the third quarter of 2012 was $92.5 million compared to $50.5 million for the same quarter in 2011. The increase in Adjusted EBITDA quarter over quarter was primarily due to a $61.8 million increase in gross profit partially offset by a $6.3 million increase in realized derivative losses, and an increase in selling and transportation expense. See the section of this press release titled "Non-GAAP Financial Measures" and the included tables for a discussion of EBITDA, Adjusted EBITDA, Distributable Cash Flow and other non-generally accepted accounting principles ("non-GAAP") financial measures, definitions of these measures and reconciliations of such measures to the comparable U.S. generally accepted accounting principles ("GAAP") measures.
"Our third quarter results were driven by strength in our fuel products segment and the addition of Royal Purple to our specialty products segment. We continued to benefit from widened crack spreads from Canadian heavy and Bakken crude oil differentials to NYMEX WTI in the third quarter. We are also pleased to add the Montana Refining employees and business to Calumet starting in the fourth quarter," said Bill Grube, Calumet's Chief Executive Officer. "The acquisition of the Great Falls, Montana refinery further strengthens our niche refining portfolio and increases our access to Canadian heavy crude oil," said Grube.
Net income reported for quarter ended September 30, 2012 increased $22.8 million quarter over quarter primarily due to a $61.8 million increase in gross profit, as discussed below, partially offset by a $6.3 million increase in realized derivative losses, a $12.2 million increase in selling expenses ($6.3 million of which is noncash amortization expense), an $11.7 million increase in interest expense and a $4.7 million increase in transportation expense.
Gross profit by segment for the three and nine months ended September 30, 2012 and 2011 are as follows:
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||||
|
September 30, |
September 30, | ||||||||||||||
|
2012 |
2011 |
2012 |
2011 | ||||||||||||
|
(Dollars in thousands, except per barrel data)
|
(Dollars in thousands, except per barrel data)
| ||||||||||||||
|
Specialty products |
$ |
90,575 |
$ |
87,789 |
$ |
245,662 |
$ |
193,988 |
|||||||
|
Fuel products |
67,831 |
8,812 |
125,796 |
42 |
|||||||||||
|
Total gross profit (1) |
$ |
158,406 |
$ |
96,601 |
$ |
371,458 |
$ |
194,030 |
|||||||
|
Specialty products gross profit per barrel |
$ |
24.37 |
$ |
31.32 |
$ |
23.10 |
$ |
23.52 |
|||||||
|
Fuel products gross profit per barrel (including hedging activities) |
$ |
13.11 |
$ |
3.01 |
$ |
8.15 |
$ |
0.01 |
|||||||
|
Fuel products gross profit per barrel (excluding hedging activities) |
$ |
21.15 |
$ |
15.19 |
$ |
17.07 |
$ |
10.26 |
|||||||
|
(1) We define specialty products and fuel products gross profit as sales less the cost of crude oil and other feedstocks and other production-related expenses, the most significant portion of which include labor, plant fuel, utilities, contract services, maintenance, depreciation and processing materials. |
The increase in specialty products segment gross profit of $2.8 million quarter over quarter was due primarily to a 32.6% increase in sales volume and lower operating costs, mainly repairs and maintenance, partially offset by a 7.2% decrease in the average selling price per barrel. Excluding incremental volumes from the Superior, Missouri, TruSouth and Royal Purple acquisitions, which reduced the average selling price per barrel due to increased asphalt sales, the specialty products average sales price per barrel decreased 4.7% due to weaker demand in the third quarter of 2012 for lubricating oils and our sales volume decreased 5.0% quarter over quarter.
The increase in fuel products segment gross profit of $59.0 million quarter over quarter was due primarily to an 76.4% increase in sales volume, mostly as a result of the Superior acquisition, a 5.9% decrease in the average cost of crude oil per barrel and a 0.7% increase in the average sales price per barrel (excluding the impact of realized hedging losses reflected in sales), partially offset by increased realized losses on derivatives of $7.4 million. Due to the extremely volatile nature of the pricing differentials between NYMEX WTI and Canadian heavy and Bakken crude oils during 2012, our NYMEX WTI crude oil swap contracts entered into to hedge the purchase of crude oil at our Superior refinery as part of our crack spread hedging program were no longer closely correlated and we were required, under U.S. GAAP, to discontinue hedge accounting on these derivatives as of January 1, 2012. Effective April 1, 2012, we also voluntarily discontinued hedge accounting for our fuel products swap contracts entered into to hedge fuel products sales at our Superior refinery. Primarily as a result of discontinuing hedge accounting on these derivative instruments, we recorded a loss of $10.2 million to realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2012. Total loss on settled derivative instruments reflected in gross profit, as discussed above, and realized gain (loss) on derivative instruments was $51.9 million for the third quarter of 2012, an increased loss of $13.8 million quarter over quarter.
The increase in specialty products segment gross profit of $51.7 million for the nine months ended September 30, 2012 compared to the same period in 2011 was due primarily to a 28.9% increase in sales volume and lower operating costs, mainly repairs and maintenance, partially offset by a 0.4% decrease in the average selling price. Excluding incremental volumes from the Superior, Missouri, TruSouth and Royal Purple acquisitions, which reduced the average selling price per barrel due to increased asphalt sales, the specialty products average sales price per barrel increased 3.1% compared to same period in 2011.
The increase in fuel products segment gross profit of $125.8 million for the nine months ended September 30, 2012 compared to the same period in 2011 was due primarily to a 99.5% increase in sales volume, mostly as a result of the Superior Acquisition, a 0.9% increase in the average sales price per barrel (excluding the impact of those realized hedging losses reflected in sales) and a 5.5% decrease in the average cost of crude oil per barrel partially offset by increased realized losses on derivatives of $57.2 million. Due to the extremely volatile nature of the pricing differentials between NYMEX WTI and Canadian heavy and Bakken crude oils during 2012, our NYMEX WTI crude oil swap contracts entered into to hedge the purchase of crude oil at our Superior refinery as part of our crack spread hedging program were no longer closely correlated and we were required, under U.S. GAAP, to discontinue hedge accounting on these derivatives as of January 1, 2012. Effective April 1, 2012, we also voluntarily discontinued hedge accounting for our fuel products swap contracts entered into to hedge fuel products sales at our Superior refinery. Primarily as a result of discontinuing hedge accounting on these derivative instruments, we recorded a gain of $20.5 million to realized gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2012. Total loss on settled derivative instruments reflected in gross profit, as discussed above, and realized gain (loss) on derivative instruments was $117.3 million for the nine months ended September 30, 2012, an increased loss of $30.9 million period over period.
Quarterly Distribution
On October 16, 2012, the Company declared a quarterly cash distribution of $0.62 per unit on all outstanding units or $38.2 million for the quarter ended September 30, 2012. The distribution will be paid on November 14, 2012 to unitholders of record as of the close of business on November 2, 2012. This quarterly distribution represents an increase of 5.1% over the second quarter of 2012 and a 24.0% increase from the third quarter of 2011.
Operations Summary
The following table sets forth unaudited information about Calumet's operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel in our fuel products segment.
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
2012 |
2011 |
2012 |
2011 | ||||||||
|
Sales volume: |
(bpd) |
(bpd) |
|||||||||
|
Specialty products |
40,392 |
30,464 |
38,807 |
30,215 |
|||||||
|
Fuel products |
56,228 |
31,873 |
56,310 |
28,331 |
|||||||
|
Total (1) |
96,620 |
62,337 |
95,117 |
58,546 |
|||||||
|
Total feedstock runs (2) |
95,708 |
63,567 |
95,079 |
60,529 |
|||||||
|
Facility production: (3) |
|||||||||||
|
Specialty products: |
|||||||||||
|
Lubricating oils |
14,966 |
15,017 |
14,773 |
14,316 |
|||||||
|
Solvents |
9,066 |
10,963 |
9,445 |
10,717 |
|||||||
|
Waxes |
1,294 |
1,434 |
1,268 |
1,234 |
|||||||
|
Packaged and synthetic specialty products (4) |
1,584 |
— |
1,342 |
— |
|||||||
|
Fuels |
531 |
491 |
630 |
519 |
|||||||
|
Asphalt and other by-products |
12,805 |
8,984 |
13,729 |
8,660 |
|||||||
|
Total |
40,246 |
36,889 |
41,187 |
35,446 |
|||||||
|
Fuel products: |
|||||||||||
|
Gasoline |
23,565 |
9,741 |
23,018 |
9,660 |
|||||||
|
Diesel |
21,625 |
13,470 |
21,641 |
11,896 |
|||||||
|
Jet fuel |
4,481 |
4,872 |
4,321 |
4,495 |
|||||||
|
Heavy fuel oils and other |
3,406 |
492 |
3,373 |
704 |
|||||||
|
Total |
53,077 |
28,575 |
52,353 |
26,755 |
|||||||
|
Total facility production (3) |
93,323 |
65,464 |
93,540 |
62,201 |
|||||||
____________
|
(1) Total sales volume includes sales from the production at our facilities and certain third-party facilities pursuant to supply and/or processing agreements and sales of inventories. Total sales volume includes the sale of purchased fuel product blendstocks such as ethanol and biodiesel in our fuel products segment sales. The increase in total sales volume for the three and nine months ended September 30, 2012 compared to the same periods in 2011 is due primarily to incremental sales of fuel products, asphalt and packaged and synthetic specialty products from the Superior, Missouri, TruSouth and Royal Purple acquisitions. |
|
(2) Total feedstock runs represent the barrels per day of crude oil and other feedstocks processed at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. The increase in the total feedstock runs for the three and nine months ended September 30, 2012 compared to the same periods in 2011 is due primarily to incremental feedstock runs from the Superior refinery, partially offset by decreased run rates at our Shreveport refinery during 2012 due to the April 28, 2012 shutdown of the ExxonMobil pipeline serving this refinery for a portion of its crude oil requirements. |
|
(3) Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities, pursuant to supply and/or processing agreements, including such agreements with LyondellBasell. The difference between total facility production and total feedstock runs is primarily a result of the time lag between the input of feedstock and production of finished products and volume loss. The increase in total facility production for three and nine months ended September 30, 2012 compared to the same periods in 2011 is due primarily to the operational items discussed above in footnote 2 of this table. |
|
(4) Represents packaged and synthetic specialty products at the Royal Purple, TruSouth and Missouri facilities. |
Derivatives Summary
The following table summarizes the derivative activity reflected in our unaudited condensed consolidated statements of operations and unaudited condensed statement of cash flows for the three and nine months end September 30, 2012 and 2011.
|
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
|
2012 |
2011 |
2012 |
2011 | ||||||||||||
|
(In thousands) |
(In thousands) | ||||||||||||||
|
Derivative loss reflected in sales |
$ |
(49,572) |
$ |
(61,125) |
$ |
(180,227) |
$ |
(165,801) | |||||||
|
Derivative gain reflected in cost of sales |
7,806 |
26,775 |
42,430 |
85,209 | |||||||||||
|
Derivative loss reflected in gross profit |
$ |
(41,766) |
$ |
(34,350) |
$ |
(137,797) |
$ |
(80,592) | |||||||
|
Realized gain (loss) on derivative instruments |
$ |
(10,156) |
$ |
(3,814) |
$ |
20,486 |
$ |
(5,798) | |||||||
|
Unrealized loss on derivative instruments |
(22,101) |
(20,335) |
(11,337) |
(23,876) | |||||||||||
|
Derivative loss reflected in interest expense |
— |
— |
— |
(702) | |||||||||||
|
Total derivative loss on unaudited condensed consolidated statements of operations |
$ |
(74,023) |
$ |
(58,499) |
$ |
(128,648) |
$ |
(110,968) | |||||||
|
Total loss on derivatives settlements |
$ |
(50,429) |
$ |
(38,939) |
$ |
(116,408) |
$ |
(82,727) | |||||||
Revolving Credit Facility Capacity
On September 30, 2012, Calumet had availability under its revolving credit facility of $477.8 million, based on a $658.5 million borrowing base and $180.7 million in outstanding standby letters of credit. Calumet believes it will continue to have sufficient cash flow from operations and borrowing capacity to meet its financial commitments, minimum quarterly distributions to unitholders, debt service obligations, contingencies and anticipated capital expenditures.
About the Partnership
Calumet is a master limited partnership and is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feedstocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products. Calumet also produces fuel products including gasoline, diesel and jet fuel. Calumet is based in Indianapolis, Indiana and has ten facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, southeastern Texas and eastern Missouri.
A conference call is scheduled for 1:00 p.m. ET (12:00 p.m. CT) on Wednesday, October 31, 2012, to discuss the financial and operational results for the third quarter of 2012. Anyone interested in listening to the presentation may call 866-543-6408 and enter passcode 22754984. For international callers, the dial-in number is 617-213-8899 and the passcode is 22754984.
The telephonic replay of the conference call is available in the United States by calling 888-286-8010 and entering passcode 95789452. International callers can access the replay by calling 617-801-6888 and entering passcode 95789452. The replay will be available beginning Wednesday, October 31, 2012, at approximately 3:00 p.m. ET (2:00 p.m. CT) until Wednesday, November 7, 2012.
The information contained in this press release is available on Calumet's website at http://www.calumetspecialty.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release concerning results for the three and nine months ended September 30, 2012 may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. Important factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels that meet our customers' unique and precise specifications; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of recently acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market or business conditions.
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with Securities and Exchange Commission ("SEC"), including our 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
We include in this press release the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow, and provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to net income (loss) and net cash provided by (used in) operating activities, our most directly comparable financial performance and liquidity measures calculated and presented in accordance with GAAP.
EBITDA, Adjusted EBITDA and Distributable Cash Flow are used as supplemental financial measures by our management and by external users of our financial statements such as investors, commercial banks, research analysts and others, to assess:
- the financial performance of our assets without regard to financing methods, capital structure or historical cost basis;
- the ability of our assets to generate cash sufficient to pay interest costs and support our indebtedness;
- our operating performance and return on capital as compared to those of other companies in our industry, without regard to financing or capital structure; and
- the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.
We believe that these non-GAAP measures are useful to analysts and investors as they exclude transactions not related to our core cash operating activities and provide metrics to analyze our ability to pay distributions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
We define EBITDA for any period as net income (loss) plus interest expense (including debt issuance and extinguishment costs), income taxes and depreciation and amortization.
We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus; (2)(a) interest expense, (b) income taxes, (c) depreciation and amortization, (d) unrealized losses from mark to market accounting for hedging activities, (e) realized gains under derivative instruments excluded from the determination of net income (loss), (f) non-cash equity based compensation expense and other non-cash items (excluding items such as accruals of cash expenses in a future period or amortization of a prepaid cash expense) that were deducted in computing net income (loss), (g) debt refinancing fees, premiums and penalties and (h) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains from mark to market accounting for hedging activities, (b) realized losses under derivative instruments excluded from the determination of net income and (c) other non-recurring expenses and unrealized items that reduced net income (loss) for a prior period, but represent a cash item in the current period.
We define "Distributable Cash Flow" for any period as Adjusted EBITDA less replacement capital expenditures, turnaround costs, cash interest expense (consolidated interest expense less non-cash interest expense) and income tax expense. Distributable Cash Flow is used by us, our investors and analysts to analyze our ability to pay distributions.
The definitions of Adjusted EBITDA and Distributable Cash Flow that are presented in this release have been updated to reflect the calculation of "Consolidated Cash Flow" contained in the indentures governing our 9 3/8% senior notes due May 1, 2019 that were issued in April and September 2011 (the "2019 Notes") and the indenture governing our 9 5/8% senior notes due August 1, 2020 that were issued in June 2012 (the "2020 Notes"). We are required to report Consolidated Cash Flow to our holders of the 2019 Notes and 2020 Notes and Adjusted EBITDA to the lenders under our revolving credit facility, and these measures are used by them to determine our compliance with certain covenants governing those debt instruments. Adjusted EBITDA and Distributable Cash Flow that are presented in this press release for prior periods have been updated to reflect the use of the new calculations. Please see our filings with the SEC, including our 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, for additional details regarding the covenants governing our debt instruments.
EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to net income, operating income, net cash provided by (used in) operating activities or any other measure of financial performance presented in accordance with GAAP. In evaluating our performance as measured by EBITDA, Adjusted EBITDA and Distributable Cash Flow, management recognizes and considers the limitations of these measurements. EBITDA, Adjusted EBITDA and Distributable Cash Flow do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow are only three of the measurements that management utilizes. Moreover, our EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of another company because all companies may not calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same manner. The following tables present a reconciliation of both net income to EBITDA, Adjusted EBITDA and Distributable Cash Flow, and Distributable Cash Flow, Adjusted EBITDA and EBITDA to net cash provided by (used in) operating activities, our most directly comparable GAAP financial performance and liquidity measures, for each of the periods indicated.
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per unit data)
| |||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||||
|
September 30, |
September 30, | ||||||||||||||
|
2012 |
2011 |
2012 |
2011 | ||||||||||||
|
(Unaudited) |
(Unaudited) | ||||||||||||||
|
Sales |
$ |
1,179,818 |
$ |
777,780 |
$ |
3,436,400 |
$ |
2,116,790 | |||||||
|
Cost of sales |
1,021,412 |
681,179 |
3,064,942 |
1,922,760 | |||||||||||
|
Gross profit |
158,406 |
96,601 |
371,458 |
194,030 | |||||||||||
|
Operating costs and expenses: |
|||||||||||||||
|
Selling |
15,002 |
2,809 |
26,668 |
8,220 | |||||||||||
|
General and administrative |
12,810 |
11,339 |
41,333 |
26,923 | |||||||||||
|
Transportation |
28,404 |
23,696 |
80,903 |
69,462 | |||||||||||
|
Taxes other than income taxes |
1,723 |
1,683 |
5,371 |
4,246 | |||||||||||
|
Insurance recoveries |
— |
— |
— |
(8,698) | |||||||||||
|
Other |
1,613 |
543 |
4,856 |
1,781 | |||||||||||
|
Operating income |
98,854 |
56,531 |
212,327 |
92,096 | |||||||||||
|
Other income (expense): |
|||||||||||||||
|
Interest expense |
(24,271) |
(12,577) |
(61,247) |
(30,602) | |||||||||||
|
Debt extinguishment costs |
— |
— |
— |
(15,130) | |||||||||||
|
Realized gain (loss) on derivative instruments |
(10,156) |
(3,814) |
20,486 |
(5,798) | |||||||||||
|
Unrealized loss on derivative instruments |
(22,101) |
(20,335) |
(11,337) |
(23,876) | |||||||||||
|
Other |
268 |
45 |
382 |
148 | |||||||||||
|
Total other expense |
(56,260) |
(36,681) |
(51,716) |
(75,258) | |||||||||||
|
Net income before income taxes |
42,594 |
19,850 |
160,611 |
16,838 | |||||||||||
|
Income tax expense |
178 |
236 |
610 |
674 | |||||||||||
|
Net income |
$ |
42,416 |
$ |
19,614 |
$ |
160,001 |
$ |
16,164 | |||||||
|
Allocation of net income: |
|||||||||||||||
|
Net income |
$ |
42,416 |
$ |
19,614 |
$ |
160,001 |
$ |
16,164 | |||||||
|
Less: |
|||||||||||||||
|
General partner's interest in net income |
848 |
392 |
3,200 |
323 | |||||||||||
|
General partner's incentive distribution rights |
1,637 |
40 |
3,256 |
40 | |||||||||||
|
Nonvested share based payments |
262 |
— |
947 |
— | |||||||||||
|
Net income available to limited partners |
$ |
39,669 |
$ |
19,182 |
$ |
152,598 |
$ |
15,801 | |||||||
|
Weighted average limited partner units outstanding: |
|||||||||||||||
|
Basic |
57,746 |
41,828 |
54,827 |
39,352 | |||||||||||
|
Diluted |
57,826 |
41,837 |
54,867 |
39,368 | |||||||||||
|
Limited partners' interest basic and diluted net income per unit |
$ |
0.69 |
$ |
0.46 |
$ |
2.78 |
$ |
0.40 | |||||||
|
Cash distributions declared per limited partner unit |
$ |
0.59 |
$ |
0.50 |
$ |
1.68 |
$ |
1.45 | |||||||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
| |||||||
|
September 30, 2012 |
December 31, 2011 | ||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
190,538 |
$ |
64 |
|||
|
Accounts receivable, net |
264,141 |
212,065 |
|||||
|
Inventories |
494,112 |
497,740 |
|||||
|
Derivative assets |
— |
58,502 |
|||||
|
Prepaid expenses and other current assets |
10,315 |
8,179 |
|||||
|
Deposits |
3,949 |
2,094 |
|||||
|
Total current assets |
963,055 |
778,644 |
|||||
|
Property, plant and equipment, net |
863,364 |
842,101 |
|||||
|
Goodwill |
161,150 |
48,335 |
|||||
|
Other intangible assets, net |
203,752 |
22,675 |
|||||
|
Other noncurrent assets, net |
47,840 |
40,303 |
|||||
|
Total assets |
$ |
2,239,161 |
$ |
1,732,058 |
|||
|
LIABILITIES AND PARTNERS' CAPITAL |
|||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
336,034 |
$ |
302,826 |
|||
|
Accrued interest payable |
30,843 |
10,500 |
|||||
|
Accrued salaries, wages and benefits |
19,507 |
13,481 |
|||||
|
Taxes payable |
16,710 |
13,068 |
|||||
|
Other current liabilities |
9,202 |
4,600 |
|||||
|
Current portion of long-term debt |
783 |
551 |
|||||
|
Derivative liabilities |
95,802 |
43,581 |
|||||
|
Total current liabilities |
508,881 |
388,607 |
|||||
|
Pension and postretirement benefit obligations |
18,315 |
26,957 |
|||||
|
Other long-term liabilities |
1,132 |
1,055 |
|||||
|
Long-term debt, less current portion |
862,513 |
586,539 |
|||||
|
Total liabilities |
1,390,841 |
1,003,158 |
|||||
|
Commitments and contingencies |
|||||||
|
Partners' capital: |
|||||||
|
Partners' capital |
906,998 |
690,373 |
|||||
|
Accumulated other comprehensive income (loss) |
(58,678) |
38,527 |
|||||
|
Total partners' capital |
848,320 |
728,900 |
|||||
|
Total liabilities and partners' capital |
$ |
2,239,161 |
$ |
1,732,058 |
|||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| |||||||
|
For the Nine Months Ended | |||||||
|
September 30, | |||||||
|
2012 |
2011 | ||||||
|
Operating activities |
(Unaudited) | ||||||
|
Net income |
$ |
160,001 |
$ |
16,164 | |||
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||
|
Depreciation and amortization |
63,828 |
43,644 | |||||
|
Amortization of turnaround costs |
10,315 |
8,288 | |||||
|
Non-cash interest expense |
4,409 |
2,363 | |||||
|
Non-cash debt extinguishment costs |
— |
14,401 | |||||
|
Provision for doubtful accounts |
296 |
255 | |||||
|
Unrealized loss on derivative instruments |
11,337 |
23,876 | |||||
|
Non-cash equity based compensation |
5,108 |
3,298 | |||||
|
Other non-cash activities |
1,100 |
(1,468) | |||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(32,370) |
(44,714) | |||||
|
Inventories |
33,678 |
(109,787) | |||||
|
Prepaid expenses and other current assets |
(1,628) |
(1,926) | |||||
|
Derivative activity |
904 |
4,928 | |||||
|
Turnaround costs |
(14,141) |
(8,849) | |||||
|
Deposits |
(1,842) |
(426) | |||||
|
Other assets |
— |
(197) | |||||
|
Accounts payable |
26,845 |
32,158 | |||||
|
Accrued interest payable |
20,343 |
22,758 | |||||
|
Accrued salaries, wages and benefits |
2,327 |
2,917 | |||||
|
Taxes payable |
3,444 |
1,676 | |||||
|
Other liabilities |
2,851 |
(9,082) | |||||
|
Pension and postretirement benefit obligations |
(7,365) |
(836) | |||||
|
Net cash provided by (used in) operating activities |
289,440 |
(559) | |||||
|
Investing activities |
|||||||
|
Additions to property, plant and equipment |
(36,735) |
(30,667) | |||||
|
Proceeds from insurance recoveries — equipment |
— |
1,942 | |||||
|
Cash paid for acquisitions, net of cash acquired |
(379,048) |
(441,626) | |||||
|
Proceeds from sale of property, plant and equipment |
1,960 |
219 | |||||
|
Net cash used in investing activities |
(413,823) |
(470,132) | |||||
|
Financing activities |
|||||||
|
Proceeds from borrowings — revolving credit facility |
1,147,778 |
1,152,898 | |||||
|
Repayments of borrowings — revolving credit facility |
(1,147,753) |
(1,107,730) | |||||
|
Repayments of borrowings — term loan credit facility |
— |
(367,385) | |||||
|
Payments on capital lease obligations |
(1,179) |
(802) | |||||
|
Proceeds from public offerings of common units, net |
146,558 |
281,870 | |||||
|
Proceeds from senior notes offerings |
270,187 |
586,000 | |||||
|
Debt issuance costs |
(7,542) |
(23,140) | |||||
|
Contributions from Calumet GP, LLC |
3,122 |
6,011 | |||||
|
Units repurchased for phantom unit grants |
(2,110) |
(620) | |||||
|
Distributions to partners |
(94,204) |
(56,382) | |||||
|
Net cash provided by financing activities |
314,857 |
470,720 | |||||
|
Net increase in cash and cash equivalents |
190,474 |
29 | |||||
|
Cash and cash equivalents at beginning of period |
64 |
37 | |||||
|
Cash and cash equivalents at end of period |
$ |
190,538 |
$ |
66 | |||
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW (In thousands)
| |||||||||||||||
|
For the Three Months Ended |
For the Nine Months Ended | ||||||||||||||
|
September 30, |
September 30, | ||||||||||||||
|
2012 |
2011 |
2012 |
2011 | ||||||||||||
|
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Distributable Cash Flow: |
|||||||||||||||
|
(Unaudited) |
(Unaudited) | ||||||||||||||
|
Net income |
$ |
42,416 |
$ |
19,614 |
$ |
160,001 |
$ |
16,164 |
|||||||
|
Add: |
|||||||||||||||
|
Interest expense |
24,271 |
12,577 |
61,247 |
30,602 |
|||||||||||
|
Debt extinguishment costs |
— |
— |
— |
15,130 |
|||||||||||
|
Depreciation and amortization |
24,542 |
14,680 |
63,828 |
43,644 |
|||||||||||
|
Income tax expense |
178 |
236 |
610 |
674 |
|||||||||||
|
EBITDA |
$ |
91,407 |
$ |
47,107 |
$ |
285,686 |
$ |
106,214 |
|||||||
|
Add: |
|||||||||||||||
|
Unrealized loss on derivatives |
22,101 |
20,335 |
11,337 |
23,876 |
|||||||||||
|
Realized gain (loss) on derivatives, |
1,494 |
(771)
|
904 |
4,366 |
|||||||||||
|
Amortization of turnaround costs |
3,154 |
2,542 |
10,315 |
8,288 |
|||||||||||
|
Non-cash equity based compensation |
3,233 |
1,335 |
5,108 |
3,298 |
|||||||||||
|
Adjusted EBITDA |
$ |
121,389 |
$ |
70,548 |
$ |
313,350 |
$ |
146,042 |
|||||||
|
Less: |
|||||||||||||||
|
Replacement capital expenditures (1) |
6,063 |
6,608 |
15,204 |
14,204 |
|||||||||||
|
Cash interest expense (2) |
22,621 |
11,869 |
56,838 |
28,239 |
|||||||||||
|
Turnaround costs |
— |
1,348 |
14,141 |
8,849 |
|||||||||||
|
Income tax expense |
178 |
236 |
610 |
674 |
|||||||||||
|
Distributable Cash Flow |
$ |
92,527 |
$ |
50,487 |
$ |
226,557 |
$ |
94,076 |
|||||||
|
(1) Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude turnaround costs. |
|
(2) Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (In thousands)
| |||||||
|
Nine Months Ended September 30, | |||||||
|
2012 |
2011 | ||||||
|
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to net cash provided by (used in) operating activities: |
|||||||
|
(Unaudited) | |||||||
|
Distributable Cash Flow |
$ |
226,557 |
$ |
94,076 | |||
|
Add: |
|||||||
|
Replacement capital expenditures (1) |
15,204 |
14,204 | |||||
|
Cash interest expense (2) |
56,838 |
28,239 | |||||
|
Turnaround costs |
14,141 |
8,849 | |||||
|
Income tax expense |
610 |
674 | |||||
|
Adjusted EBITDA |
$ |
313,350 |
$ |
146,042 | |||
|
Less: |
|||||||
|
Unrealized loss on derivative instruments |
11,337 |
23,876 | |||||
|
Realized gain on derivatives, not included in net income |
904 |
4,366 | |||||
|
Amortization of turnaround costs |
10,315 |
8,288 | |||||
|
Non-cash equity based compensation |
5,108 |
3,298 | |||||
|
EBITDA |
$ |
285,686 |
$ |
106,214 | |||
|
Add: |
|||||||
|
Unrealized loss on derivative instruments |
11,337 |
23,876 | |||||
|
Cash interest expense (2) |
(56,838) |
(28,239) | |||||
|
Non-cash equity based compensation |
5,108 |
3,298 | |||||
|
Amortization of turnaround costs |
10,315 |
8,288 | |||||
|
Income tax expense |
(610) |
(674) | |||||
|
Provision for doubtful accounts |
296 |
255 | |||||
|
Debt extinguishment costs |
— |
(729) | |||||
|
Changes in assets and liabilities: |
|||||||
|
Accounts receivable |
(32,370) |
(44,714) | |||||
|
Inventories |
33,678 |
(109,787) | |||||
|
Other current assets |
(3,470) |
(2,352) | |||||
|
Turnaround costs |
(14,141) |
(8,849) | |||||
|
Derivative activity |
904 |
4,928 | |||||
|
Other assets |
— |
(197) | |||||
|
Accounts payable |
26,845 |
32,158 | |||||
|
Other liabilities |
28,965 |
18,269 | |||||
|
Other, including changes in noncurrent liabilities |
(6,265) |
(2,304) | |||||
|
Net cash provided by (used in) operating activities |
$ |
289,440 |
$ |
(559) | |||
|
(1) Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude turnaround costs. |
|
(2) Represents consolidated interest expense less non-cash interest expense. |
|
CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. COMMODITY DERIVATIVE INSTRUMENTS As of September 30, 2012
| ||||||||||
|
Fuel Products Segment | ||||||||||
|
The following table provides a summary of Calumet's derivatives and implied crack spreads for their crude oil, diesel, jet and gasoline swaps, as well as, Calumet's Canadian heavy crude oil versus NYMEX WTI crude oil basis swaps as of September 30, 2012. | ||||||||||
|
Crude Oil and Fuel Products Swap Contracts by Expiration Dates |
Barrels |
BPD |
Implied Crack Spread ($/Bbl) | |||||||
|
Fourth Quarter 2012 |
2,622,000 |
28,500 |
$ |
20.85 | ||||||
|
Calendar Year 2013 |
7,605,000 |
20,836 |
26.00 | |||||||
|
Calendar Year 2014 |
4,195,000 |
11,493 |
26.07 | |||||||
|
Calendar Year 2015 |
3,467,500 |
9,500 |
26.21 | |||||||
|
Totals |
17,889,500 |
|||||||||
|
Average price |
$ |
25.30 | ||||||||
|
The following table provides a summary of Calumet's Canadian heavy crude oil versus NYMEX WTI crude oil basis swaps as of September 30, 2012. | ||||||||||
|
Crude Oil Basis Swap Contracts by Expiration Dates |
Barrels Purchased |
BPD |
Average Differential to NYMEX WTI ($/Bbl) | |||||||
|
Fourth Quarter 2012 |
184,000 |
2,000 |
$ |
(23.50) | ||||||
|
Calendar Year 2013 |
730,000 |
2,000 |
(23.75) | |||||||
|
Totals |
914,000 |
|||||||||
|
Average price |
$ |
(23.70) | ||||||||
|
Specialty Products Segment | ||||||||||
|
The following table provides a summary of Calumet's derivatives for its natural gas purchases as of September 30, 2012. | ||||||||||
|
Natural Gas Swap Contracts by Expiration Dates |
MMBtu |
$/MMBtu |
||||||||
|
Fourth Quarter 2012 |
600,000 |
$ |
4.08 |
|||||||
|
Totals |
600,000 |
|||||||||
|
Average price |
$ |
4.08 |
||||||||
SOURCE Calumet Specialty Products Partners, L.P.
CONTACT: Jennifer Straumins, +1-317-328-5660, jennifer.straumins@calumetspecialty.com
Web Site: http://www.calumetspecialty.com