- Third quarter 2024 net loss of $100.6 million, or basic loss per common share of $1.18 per share
- Third quarter 2024 Adjusted EBITDA of $49.8 million
- Montana Renewables ("MRL") set another new SAF production volume record
- Specialties business posted highest production levels in over five years
- Montana Renewables announced conditional commitment of $1.44 billion Department of Energy ("DOE") loan
- Successfully completed conversion from a Master Limited Partnership ("MLP") to a C-Corp
Calumet, Inc. (NASDAQ: CLMT) reported results of Calumet, Inc. (the "Company," "Calumet," "we," "our" or "us") for the third quarter ended September 30, 2024, as follows:
(Dollars in millions, except per share data)
Net income (loss)
Three Months Ended September 30,
2024: $ (100.6)
2023: 2$ 99.8
Nine Months Ended September 30,
2024: $ (181.3)
2023: $ 96.1>
Basic earnings (loss) per common share
Three Months Ended September 30,
2024: $ (1.18)
2023: $ 1.24
Nine Months Ended September 30,
2024: $ (2.21)
2023: $ 1.20
Adjusted EBITDA
Three Months Ended September 30,
2024: $ 49.8
2023: $ 75.4
Nine Months Ended September 30,
2024: $ 138.2
2023: $ 220.8
"Calumet continues to execute on our strategic catalysts as planned," said Todd Borgmann, CEO. "We started the quarter with the conversion of Calumet's structure from a MLP to a C-Corp, and in October we announced the conditional commitment of a $1.44 billion DOE loan guarantee. We remain confident and on-track to close the DOE loan as previously disclosed."
"Further, we are pleased to report significant progress towards fortifying our operations, with our specialties business achieving a new production record and Montana Renewables reaching a new SAF production high. These new operational milestones and continued execution against our strategic initiatives support our relentless focus on driving shareholder value."
"Last, as we've previously expressed, we would like to thank the DOE, and we are thrilled to continue forward on the leading edge of our nation's Sustainable Aviation Fuel opportunity. Innovation is at the heart of what we do at Calumet, and we are honored that Montana Renewables can help solidify our nation's position as a global leader in one of energy's fastest growing markets."
Specialty Products and Solutions (SPS): The SPS segment reported Adjusted EBITDA of $42.6 million during the third quarter of 2024 compared to Adjusted EBITDA of $38.6 million for the same quarter a year ago. Segment results reflected strong operations, which overcame previously announced downtime in July from Hurricane Beryl.
Performance Brands (PB): The PB segment reported Adjusted EBITDA of $13.6 million during the third quarter of 2024 versus Adjusted EBITDA of $13.2 million in the third quarter of 2023, benefitting from 19 percent growth in year-over-year volumes.
Montana/Renewables (MR): The MR segment reported $12.7 million of Adjusted EBITDA during the third quarter of 2024 compared to Adjusted EBITDA of $38.2 million in the prior year period. Third quarter results reflect improved operating results, higher volumes from our renewables business, and a new high point for SAF production. Our specialty asphalt plant posted lower results as fuel spreads tightened. As previously announced, the Great Falls facility is conducting a planned turnaround in November to change catalyst. This timing allows completion prior to the winter season and was planned to coincide with a period of margin uncertainty as the blenders tax credit is expected to change to the production tax credit.
Corporate: Total corporate costs represent $(19.1) million of Adjusted EBITDA for the third quarter 2024. This compares to $(14.6) million of Adjusted EBITDA in the third quarter 2023.
Calumet Specialty Products Partners, L.P. Completes Conversion to C-Corporation: As previously announced, Calumet Specialty Products Partners, L.P. completed the previously announced conversion (the "Conversion") of its structure from an MLP to a C-Corporation, pursuant to which the unitholders of Calumet Specialty Products Partners, L.P. (the "Partnership") became shareholders of Calumet, Inc. As previously announced, at the Partnership's special meeting of unitholders held on July 9, 2024, over 99% of the votes cast on the Conversion proposal were cast in favor of the approval of the Conversion. The Partnership's unitholders also voted to approve all other proposals presented at the special meeting.
Montana Renewables Receives $1.44 Billion Conditional Commitment from DOE for Renewable Fuels and Biomass Energy Facility
Calumet announced on October 16, 2024, that the U.S. Department of Energy ("DOE") Loan Program 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.
The expansion would position Montana Renewables as one of the largest Sustainable Aviation Fuel ("SAF") producers globally with production capacity of approximately 300 million gallons of SAF and 330 million gallons of combined SAF and renewable diesel.
MRL expects to execute a sequence of discrete individual projects including: a second renewable fuels reactor (allowing approximately half of the 300 million gallon SAF capability to be online by 2026); debottlenecking of the existing renewable fuels and feedstock pretreatment units; installation of SAF blending and logistics assets; increased renewable hydrogen production; addition of cogeneration for renewable electricity and steam; on-site water treatment and recycling capabilities; and other site enhancements. As previously disclosed, while this conditional commitment represents a significant milestone and demonstrates DOE's intent to finance the project, certain technical, legal, environmental and financial conditions, including negotiation of definitive financing documents, must be satisfied before funding of the loan guarantee. Further details on this announcement can be found in the Current Report on Form 8-K filed by the Company on October 22, 2024.
