Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) Q4 2022 Earnings Call Transcript

Operator: The next question comes from Manav Gupta with UBS. Please go ahead.

Manav Gupta: Hey guys. Can you help us understand how much RD did you actually produce in 4Q? And what was the actual EBITDA associated with that? I’m trying to get to an EBITDA margin per gallon to benchmark and see this — I understand this is the first quarter you did it, so we can track the improvement going ahead. So if you could help us understand what the EBITDA margin per gallon was for the project in 4Q?

Bruce Fleming: Amit, it’s Bruce. Sorry, Manav, apologies for that. The physical production in 4Q was very limited. Mostly we put that into tanks as we built inventory shipments for sale, began late in December. So it’s not going to be meaningful in 4Q. What I’ll direct you to is the contracts that we have for selling the renewable diesel are all fully priced on the California formula. In other words, CARB diesel plus blenders tax credit, plus LCFS, plus 1.7x We get a hundred percent of that.

Manav Gupta: No worries. Coming to the fourth quarter, just trying to understand from the opportunity cost, if you were not down and on the score features were not — did not happen, then what would the refining segment EBITDA probably look like? Because the margins were great in 4Q and somewhere the EBITDA reported of minus 13 doesn’t do justice to that. So I’m just trying to understand if it was not for all the turnarounds and the D3 would be — you be reporting a significantly higher number from your refining business.

Bruce Fleming: Yes, we would. That’s the $40 million to $45 million that you should add back.

Manav Gupta: Okay. Thank you guys.

Bruce Fleming: Thanks, Manav.

Operator: As there are no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Brad McMurray for any closing remarks.

Brad McMurray: Yes, thanks. On behalf of the management team here and really all at Calumet, we thank you for your time and your interest this morning. Thank you for joining the call. Everyone have a great rest of the week.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.