Calumet Specialty Products Partners, L.P. has released its financial results for the fourth quarter and full year of 2023. Here are the key points from the press release:
Financial Highlights: * Full year 2023 net income of $48.1 million, or limited partners’ interest of $0.59 basic net income per unit. * Full year 2023 adjusted EBITDA of $260.5 million. * The company has announced its intent to convert its corporate structure to a C-Corp from a master limited partnership. * Montana Renewables ("MRL") returned to normal operations in December after replacing a steam drum. * The specialties business achieved its fifth consecutive year of margin growth. * The company entered into a note purchase agreement to issue $200 million aggregate principal amount of 9.25% senior secured first lien notes due 2029.
Segment Performance: * Specialty Products and Solutions segment reported adjusted EBITDA of $75.6 million for the fourth quarter of 2023 and $251.2 million for the full year 2023. * Performance Brands segment reported adjusted EBITDA of $6.1 million during the fourth quarter of 2023 and $47.9 million for the full year 2023. * Montana/Renewables segment reported a loss of $(25.8) million of adjusted EBITDA during the fourth quarter of 2023 and $30.2 million for the full year 2023.
Outlook and Future Plans: * The company expressed optimism about the prospects of its DOE loan process and the potential monetization later in the year as a strategic deleveraging opportunity.
Corporate Actions: * Calumet has entered into a note purchase agreement to sell $200.0 million aggregate principal amount of 9.25% senior secured first lien notes due 2029. * The company plans to use the net proceeds from the private placement of the 2029 secured notes, together with cash on hand, to redeem all of its outstanding 9.25% senior secured first lien notes due 2024 and $50.0 million aggregate principal amount of its outstanding 11.00% senior notes due 2025.
Restatement of Financial Results: * Calumet announced the decision to restate the audited financial statements for the year ended December 31, 2022, and the unaudited interim consolidated financial statements for the periods ended March 31, 2023, June 30, 2023, and September 30, 2023 as a result of the attribution of net loss from Montana Renewables Holdings LLC ("MRHL") to noncontrolling interest.
The market has reacted to these announcements by moving the company's shares -5.9% to a price of $16.2. For more information, read the company's full 8-K submission here.
