July profitability verifies top tier financial
position in renewable fuels.
Steam system maintenance
currently limits MRL processing rate until late
September.
Pretreater debottlenecking continues with
above nameplate rates delivered.
INDIANAPOLIS, Aug. 31,
2023 /PRNewswire/ -- Calumet Specialty Products
Partners, L.P. (NASDAQ: CLMT) ("Calumet," "we," "our" or "us")
today provided an operational update on its Montana Renewables LLC
business.
Montana Renewables, LLC
Montana Renewables LLC ("MRL") estimates adjusted EBITDA of
$14.2 million in July, excluding
contributions from the specialty asphalt refinery. MRL's
EBITDA was $1.23 per gallon overall
and $1.35 per gallon on untreated
feedstock, in line with guidance. Untreated feedstock
comprised 70% of the feed mix in July.
A leak in the steam recovery system on the renewable hydrogen
plant was identified earlier this month which will limit throughput
until repaired. The repair is expected to be completed in
late September. Montana Renewables' redundant hydrogen
systems allow the plant to continue to run, albeit at reduced
rates. MRL presently estimates 8,000 to 8,500 barrels per day
of renewable product sales for the third quarter, and the plant is
currently processing all untreated feed. Pre-treater
debottlenecking continues, and in August the unit demonstrated the
ability to process 11,000 barrels per day of untreated
feedstock. Throughput rates at the legacy specialty asphalt
side of the operation remain at full levels.
"We are pleased with a very competitive July margin performance
in line with our guidance of $1.25 to
$1.45 per gallon," said Bruce Fleming, CEO Montana Renewables and EVP Corporate
Development. "Margin per gallon will continue to increase as
the percentage of untreated feed grows and fixed costs spread over
a larger throughput volume after the steam system is
repaired."
"I'd like to thank our operations team for detecting an issue in
the steam system, bringing it down safely, and quickly developing a
repair plan that targets resuming full production by the end of
this quarter," said Todd Borgmann,
CEO Calumet. "July's financial performance is additional
confirmation of Montana Renewables' advantaged competitive
position, and we remain on track strategically with our MaxSAF
engineering, Department of Energy funding process, and ultimate
monetization plans all progressing well."
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements and information in this press release, may
constitute "forward-looking statements." The words "may," "expect,"
"plan," "intend," "should," "will," "believe" 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. Our
forward-looking statements involve significant business, economic,
competitive, regulatory and other risks, contingencies and
uncertainties, most of which are difficult to predict and many of
which are beyond our control. In addition, we have based many
of these forward-looking statements on assumptions that could cause
our actual results to differ materially from our historical
experience and our present expectations or projections. Readers are
cautioned not to place undue reliance on these 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, except to
the extent required by applicable law. For information regarding
factors that could cause our actual results to differ from our
forward-looking statements, please see our filings with the
Securities and Exchange Commission ("SEC"), including the risk
factors and other cautionary statements in our latest Annual Report
on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other
filings with the SEC.
About Calumet
Calumet Specialty Products Partners, L.P. manufactures,
formulates and markets a diversified slate of specialty branded
products and renewable fuels to customers across a broad range of
consumer-facing and industrial markets. Calumet is
headquartered in Indianapolis,
Indiana and operates twelve facilities throughout
North America.
About Montana Renewables, LLC
Montana Renewables, LLC is an unrestricted subsidiary of Calumet
located in Great Falls,
MT. Montana Renewables converts 15,000 barrels per stream day
("bpsd"; permit capacity) renewable feedstock into low-emission
sustainable alternatives that directly replace fossil fuel
products. The renewable fuels plant began operations in late
2022. MRL is a leader in North
America's energy transition and the largest Sustainable
Aviation Fuel producer in the western hemisphere. Renewable
products are being delivered to Canada and the United States West Coast.
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SOURCE Calumet Specialty Products Partners, L.P.