Q1 2024 Calumet Specialty Products Partners LP Earnings Call Transcript
Key Points
- Calumet Specialty Products Partners LP is on track with its C-Corp conversion, expected to complete within 60 days, enhancing liquidity and investor base.
- The company reported a 20% increase in average daily trading volume since announcing the C-Corp conversion, indicating growing investor interest.
- Montana Renewables demonstrated operational improvements, with sequential monthly enhancements in production and cost efficiency.
- Calumet successfully completed a planned turnaround at Shreveport on-time and on budget, showcasing strong execution capabilities.
- The specialties business continues to show robust performance with five consecutive years of margin growth, driven by a strategic focus on commercial excellence and innovation.
- Calumet experienced significant seasonal weakness in the Northern Rockies, impacting gasoline and asphalt realizations adversely.
- The company recorded a loss of $14.5 million of adjusted EBITDA for the Montana business in the first quarter, primarily due to legacy operations.
- The renewable diesel industry is currently facing lower than normal index margins, which has affected profitability across the sector.
- Calumet's Montana Renewables faced challenges with expensive feedstock and inventory management, although these issues are being resolved.
- The broader market conditions for renewable diesel remain uncertain, with regulatory and market dynamics posing risks to future performance.
Good morning, everyone, and welcome to the Calumet Specialty Products Partners LP first-quarter 2024 results conference call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the floor over to John Kompa, Investor Relations for Calumet. Sir, please go ahead.
Good morning. Thank you, Jamie, and thank you for joining us today for our first-quarter 2024 earnings call. With me on today's call are Todd Borgmann, CEO; David Lunin, CFO; Bruce Fleming, EVP of Montana Renewables & Corporate Development; and Scott Obermeier, EVP Specialties.
You may now download the slides that accompany the remarks made on today's conference call, which can be accessed in the Investor Relations section of our website at calumet.com. Also, a webcast replay of this call will be available on our site within a few hours.
Turning to the presentation, on slide 2 and 3, you can find our cautionary statements and tax disclosures. I'd
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