Calumet Provides Preliminary Third Quarter 2024 Selected Financial Results
INDIANAPOLIS, Oct. 23, 2024 /PRNewswire/ -- Calumet, Inc. (NASDAQ:CLMT) (the "Company," "Calumet," "we," "our" or "us") announced today preliminary selected financial results for the third quarter ended September 30, 2024.
Based on preliminary data, the Company currently expects to report a net loss between $110 million and $90 million and Adjusted EBITDA between $45 million and $55 million for the third quarter 2024. For a reconciliation of the preliminary estimate of Adjusted EBITDA to preliminary estimated net loss, the most directly comparable GAAP measure, see "Non-GAAP Financial Measures" below. Further, as of September 30, 2024, the Company estimates total liquidity of approximately $290 million comprised of approximately $35 million of unrestricted cash and cash equivalents and approximately $255 million of availability under our credit facilities.
Calumet continued to demonstrate strong operations at Montana Renewables throughout the third quarter, processing approximately 12,000 barrels per day of renewable feedstock and producing over 2,500 barrels per day of sustainable aviation fuel ("SAF"). Further, a new SAF production record was achieved each month during the third quarter, culminating with approximately 3,200 barrels per day of SAF produced in September. Montana Renewables is expected to generate over $5 million of Adjusted EBITDA for the third quarter, despite experiencing a roughly $6 million impact to margins from feedstock price lag when the industry saw these prices abruptly drop approximately $0.40 per gallon in late July. Last, the Great Falls facility expects to conduct a planned turnaround in November to change catalyst. This timing is expected to allow completion prior to the winter season and to coincide with a period of margin uncertainty as the blender tax credit is expected to change to the production tax credit.
Our Specialties business operated well during the third quarter, with total production volume increasing versus the prior quarter despite experiencing unplanned downtime in July from Hurricane Beryl. As previously disclosed, this downtime resulted in a loss of approximately 500,000 barrels of production, resulting in a lost opportunity of roughly $8 million. Specialty margins continue to remain resilient, largely in line with the second quarter, and fuel margins tightened along with the broader industry.
Finally, the Company announced on October 16 that the U.S. Department of Energy ("DOE") Loan Programs Office ("LPO") has awarded a conditional commitment for a loan guarantee of up to $1.44 billion to fund the construction and expansion of a renewable fuels facility owned by Montana Renewables, LLC ("Montana Renewables" or "MRL"), an unrestricted subsidiary of Calumet. Further details on this announcement can be found in the Current Report on Form 8-K filed by the Company on October 22, 2024.
The Company has prepared the estimated preliminary financial data presented above based on the most current information available to management. The Company's normal financial reporting processes with respect to the preliminary financial data have not been fully completed and the Company's independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the accompanying preliminary financial data. As a result, the Company's actual financial results could vary materially from this preliminary financial data. Investors should not place undue reliance on these preliminary financial data. These estimates should not be viewed as a substitute for full interim financial statements prepared in accordance with U.S. GAAP.
About Calumet
Calumet, Inc. (NASDAQ:CLMT) 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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "will," "may," "intend," "believe," "expect," "outlook," "forecast," "anticipate," "estimate," "continue," "plan," "should," "could," "would," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding (i) preliminary estimates of selected financial results for the most recent quarterly period, (ii) our expectations regarding the loan facility (the "DOE Facility") that MRL expects to receive from the DOE LPO, including the timing, size and intended use of borrowings under such facility, (iii) our expectation that the DOE Facility will enable MRL to complete the MaxSAF™ construction and that such project will be completed on time and on budget, (iv) demand for finished products in markets we serve, (v) our expectation regarding our business outlook and cash flows, including with respect to the Montana Renewables business and our plans to de-leverage our balance sheet, (vi) our expectation regarding anticipated capital expenditures and strategic initiatives, and (vii) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures. 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 current 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 acquisition or disposition transactions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause our actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty products, fuels, renewable fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products, fuel products, and renewable fuel products that ...
