Calumet Specialty Products provides Q2 update on Specialties business

The Northwest Louisiana area endured extreme weather consisting of tornadoes and hurricane-force straight-line wind events during the quarter, the most recent of which left over 250,000 people without power. These weather events resulted in the repeated loss of external electrical supply to all four facilities that make up our Northwest Louisiana specialties complex. Disruptions during the quarter resulted in reduced production volume of approximately 500,000 barrels. “Despite the loss of power and property damage across the region, including to a number of our employees’ homes, the team rallied to restart and normalize operations, complete the turnaround at our Cotton Valley Solvents facility, and advance maintenance at our Princeton and Shreveport facilities,” said Borgmann. Our investment program to further harden and integrate our unique specialties complex continues. While we are approximately halfway through the three-year program, the foundational work completed thus far was instrumental in returning to normal operations. “Meeting robust specialty product demand during these disruptions was a significant challenge, and I am proud of how our entire team responded” said Scott Obermeier, EVP Specialties. “With the plants running, we are now rebuilding inventories and focused on capturing the solid market demand in front of us. Performance Brands operations in Northwest Louisiana also experienced several power outages, which were more than offset by proactive inventory management and strong demand. During these extreme events we were able to prioritize needed deliveries of fuel to emergency responders and donate supplies of TruFuel to assist with clean-up efforts.” Strategically, the company continues to progress. “With strong market conditions and assets in full operation, we expect to generate significant cash flow from both Specialties and Montana Renewables in the second half of the year,” said Borgmann. “Further, our Montana Renewables monetization strategy remains on track. With proven operations and a tangible growth strategy, the appeal of Montana Renewables to potential investors, including the public market, continues to grow. This combination of expected strong cash flows and a path to potential monetization leaves Calumet well positioned to achieve its strategic objectives of permanently de-levering the business and unlocking value for our unit holders.”