INDIANAPOLIS, Nov. 6, 2013 /PRNewswire/ -- Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) ("Calumet" or the "Partnership"), a leading independent producer of specialty hydrocarbon and fuel products, today announced that its wholly-owned subsidiary, Calumet San Antonio Refining, LLC, has entered into a definitive agreement with TexStar Midstream Logistics, L.P. ("TexStar") under which TexStar will construct, own and operate a 30,000 barrel per day crude oil pipeline system that will supply significant volumes of Eagle Ford crude oil to Calumet's San Antonio, Texas refinery.
Under the terms of the 15-year agreement, TexStar has committed to install and operate the Karnes North Pipeline System ("KNPS"), an 8-inch, 50-mile pipeline that will transport crude oil from Karnes City, Texas – a major center of oil production in the Eagle Ford shale formation - to Calumet's Elmendorf, Texas terminal, a key supply hub for Calumet's San Antonio refinery. The San Antonio refinery expects to receive deliveries of at least 10,000 bpd of crude oil through the KNPS-Elmendorf terminal supply route once the line comes into service during the fourth quarter 2014.
As a result of this agreement, Calumet expects to significantly reduce its cost to transport crude oil to the San Antonio refinery, where it currently receives crude oil deliveries by truck. Over time, Calumet expects to increase the volume of crude oil shipped on the KNPS above 10,000 bpd, which should contribute to incremental cost savings.
"We expect this agreement will help to further improve the long-term profitability of our San Antonio refinery," stated Jennifer Straumins, President and COO of Calumet Specialty Products Partners, L.P. "By year-end 2014, the refinery will begin receiving significant volumes of Eagle Ford crude oil via the TexStar line, thereby enabling us to realize significant transportation cost savings on our delivered feedstock."
"During the fourth quarter 2013, we successfully completed a project that allows the San Antonio refinery to blend heavy reformates, light naphtha and ethanol to produce up to 3,000 bpd of higher-value finished gasoline," continued Straumins. "Early into the first quarter 2014, we expect to complete a crude unit expansion at the San Antonio refinery. This expansion will increase our total capacity at the facility from 14,500 bpd to 17,500 bpd, while allowing for increased production of jet fuel, diesel fuel and gasoline. These projects, in concert with our ongoing efforts to source increased volumes of cost-advantaged Eagle Ford crude oil, should serve to greatly enhance the financial performance of the San Antonio refinery in the years to come," concluded Straumins.
About Calumet Specialty Products Partners, L.P.
Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) 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 and waxes 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 eleven facilities located in northwest Louisiana, northwest Wisconsin, northern Montana, western Pennsylvania, Texas and eastern Missouri.
Safe Harbor Statement
Certain statements and information in this press release 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 sales 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 2012 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.
SOURCE Calumet Specialty Products Partners, L.P.