CALUMET SPECIALTY PRODUCTS PARTNERS, L.P. REPORTS SECOND QUARTER 2022 RESULTS

• Net loss of $15.3 million, or $(0.19) per unit, for the second quarter 2022
• Second quarter Adjusted EBITDA of $175.8 million
• Completed Montana Renewables financing, highlighting a $2.25 billion MRL enterprise value
• Super-cycle margin environment highlights benefits of integrated specialty business

INDIANAPOLIS, Aug. 5, 2022 /PRNewswire/ — Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the “Partnership,” “Calumet,” “we,” “our” or “us”), today reported results for the second quarter ended June 30, 2022, as follows:

“Today is a special day at Calumet as we announce a record financial quarter and a transformational equity investment that places a $2.25 billion enterprise value on Montana Renewables,” said Todd Borgmann, CEO. “These achievements are the culmination of the extraordinary effort, commitment, and faith of our employees, customers, and investors, and I thank you for that commitment.  From here, we will continue to focus on our strategic vision of creating and separating two leading businesses and further de-leveraging Calumet’s balance sheet.”

“Our second quarter performance highlights the power of Calumet’s unique, highly integrated specialty business. Calumet has demonstrated the ability to perform across the range of business cycles. We relied on our consumer-facing product lines to weather the depths of Covid, and we now have configured to deliver exceptional results through the commodity super-cycle.”

Calumet announced two capital markets transactions this morning, concluding the capitalization of the Montana Renewables business.  The investments are comprised of a $250 million preferred equity investment from Warburg Pincus and a $350 million sale leaseback investment from Stonebriar Commercial Finance.  “These transactions highlight the transformative nature of Montana Renewables and bringing them to fruition in the current capital market environment demonstrates that MRL is one of the most highly sought after Renewable Diesel platforms in North America. Our continuing equity process has been rewarding and dialogue continues to be highly active,” said Borgmann.  “Warburg Pincus is the perfect partner, not just through their help in fully capitalizing this business, but through their extensive experience in energy, decarbonization, and scaling businesses.”

Specialty Products & Solutions (SPS):  The SPS segment reported Adjusted EBITDA of $123.5 million, compared to Adjusted EBITDA of $31.8 million for the same quarter a year ago.  Fuels margins during the second quarter were significantly higher than the second quarter of 2021.  Coupled with the dramatic increase in fuels margins, our focus on commercial excellence allowed us to deliver strong specialty margins of $65.95 per barrel.  This strong margin environment highlights the benefits of our integrated business model.  Production volumes within SPS were 57,689 barrels per day (bpd) versus 49,195bpd in the second quarter of 2021.  This represents a 17.3% increase in production year over year and is primarily due to strong operational performance and the absence of the unplanned downtime we experienced in the second quarter a year ago due to Winter Storm Uri.

Montana / Renewables (MR):  The MR segment reported $68.6 million of Adjusted EBITDA, compared to Adjusted EBITDA of $12.8 million for the second quarter of 2021.  The year-over-year improvement is largely attributable to the significantly higher crack spread environment experienced during the second quarter versus the same quarter last year.  Production volumes of 27,242 bpd were slightly above the 26,893 bpd produced in the second quarter of 2021.

Performance Brands (PB):  The PB segment reported Adjusted EBITDA of $3.7 million, compared to Adjusted EBITDA of $7.3 million for the same quarter a year ago. Second quarter results were primarily impacted by the inflationary pressure on feedstocks, additives and packaging materials.  The underlying market factors that are driving feedstock prices upwards are also a key driver to strong margins elsewhere in the business, once again highlighting the interaction between our integrated business segments.   Higher volumes reflect underlying demand strength across PB product lines, and production increased 24.6% versus the second quarter of 2021.

Corporate:  Total corporate costs are represented as a loss of $20.0 million of Adjusted EBITDA, compared to a loss of $19.6 million of Adjusted EBITDA in the second quarter of 2021.

Operations Summary

The following table sets forth information about the Partnership’s continuing operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased blendstocks, as well as the resale of crude oil.