MRL Q1 Results Impacted by Prior Feedstock Purchases


   
   OAKHURST, N.J. (DTN) --- Calumet Specialty Products Partners, L.P. in a 
first quarter operational update said Montana Renewables, which resumed 
production in December 2023, operated well throughout the quarter as volumes 
sequentially improved each month but results would be impacted by higher priced 
feedstock overhang.

   "First quarter results for the MRL business are expected to reflect the 
significant burden of higher priced feedstock purchased prior to the summer 
2023 slowdown related to a steam system issue. Entering the second quarter of 
2024, the old, expensive feedstock has been processed," the update read.

   Calumet continued that results for the first quarter will reflect a planned 
turnaround at its Shreveport site in March, but that site begins the second 
quarter with solid operating momentum. During the first quarter Calumet said it 
was negatively impacted by seasonal weakness in its fuels and asphalt products, 
particularly in PADD IV.

   "A year after commissioning began, our Montana Renewables business is now 
consistently processing approximately 12,000 barrels per day of renewable 
feedstock, including over 10,000 barrels per day of feed from our next 
generation feed pretreater," said Todd Borgmann, CEO of Calumet. "With these 
key operational milestones now reached, stable operations have allowed us to 
process an overhang of old expensive feedstock inventory. Given this progress, 
we are optimistic that we will achieve representative financial performance at 
Montana Renewables going forward, clearly demonstrating our strong competitive 
position of the business. Our advantaged feed and technology positions are 
complemented by agile product marketing and our position as the largest 
producer of sustainable aviation fuel in the Western Hemisphere, with current 
production levels running at a 30 million gallon per year pace. Significant 
further expansion of SAF production remains a strategic priority, and we remain 
encouraged by the well-advanced DOE loan program discussions."




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