Calumet Specialty Products Partners

Calumet, Inc. has amended its existing asset-based loan facility to increase total commitments to $600 million, an increase of $100 million, subject to borrowing base limitations. The ABL maturity date remains January 2031 and is led by Bank of America, N.A., as agent for a group of lenders. Separately, Montana Renewables, LLC, an unrestricted subsidiary of Calumet, received its final draw of $34 million under its recently amended Loan Guarantee Agreement with the U.S. Department of Energy. Chief Financial Officer David Lunin said the amended ABL facility reflects an adjustment of the borrowing base to align with higher market prices and higher receivables, strengthening liquidity to support working capital needs as commodity prices fluctuate. The company also noted that remaining project capital for its MaxSAF expansion was reduced to $137 million from the $1.2 billion contemplated in the original Phase 2 plan, driven by repurposing proven equipment from the adjacent Calumet Montana Refining asphalt facility.

Energy stocks rallied after escalating attacks on Middle East shipping corridors and production shut-ins raised fears of severe global crude shortages, with crude benchmarks on track for an 8% weekly advance. Reuters reported that the International Energy Agency forecast a massive drop in global oil supply of 5.7 million barrels per day in 2026, driven by ongoing shut-ins across the Gulf and delayed normalization of flows into 2027. The deficit is expected to accelerate worldwide inventory drawdowns and push Atlantic Basin refining margins to record levels. Among the movers, Tsakos Energy Navigation Limited jumped 6.1%, Solaris Energy Infrastructure jumped 8.3%, DHT Holdings jumped 3.1%, and Calumet jumped 1.6%. Solaris Energy Infrastructure, whose shares have had 73 moves greater than 5% over the last year, is up 38% since the beginning of the year but at $69.34 per share still trades 16.3% below its 52-week high of $82.88 from June 2026.

Calumet expects to reach a sustainable aviation fuel run rate of over 120 million gallons by spring 2027 while projecting its restricted group leverage ratio will surpass 3x next quarter. The company reported $175 million of adjusted EBITDA with tax attributes in the second quarter, up from $50.1 million in the first quarter, and drove over $90 million of cash flow from operations. Management highlighted accelerated deleveraging actions including calling $100 million of notes and repurchasing a sale-leaseback for $115 million, and outlined a staged SAF ramp targeting 80 million to 100 million gallons by year-end before reaching the spring 2027 target. The renewables expansion is described as a novel, capital-efficient project that saves hundreds of millions of dollars compared to a mega project, while the company plans to capture over $50 million of EBITDA at its CMR segment before reconfiguration.

Calumet shares jumped more than 4% on Wednesday after the company announced it is redeeming all $100 million of its 9.75% senior notes due 2028. Two wholly owned subsidiaries will redeem the notes at a price of slightly over 102.4% of par value. The move is part of a broader strategy to reduce debt, following a reduction in borrowings under its revolving credit facility in the second quarter. CFO David Lunin said the company is well positioned to continue accelerating deleveraging while investing in growth opportunities. Calumet still carries significant leverage, with long-term debt of just under $2.3 billion against nearly $2.8 billion in assets as of its most recent quarter.

The global aliphatic hydrocarbon solvents and thinners market is forecasted to surge to USD 6.81 billion by 2032, climbing from USD 5.26 billion in 2026 with a projected CAGR of 4.4%. Growth is propelled by heightened consumption in key sectors such as coatings, adhesives, and industrial maintenance, with the mineral spirits segment estimated to hold the largest share by type and the paints and coatings segment leading by application. Asia Pacific is estimated to hold the largest market share, driven by strong demand from paints and coatings amid massive construction activities in manufacturing powerhouses such as China, India, and Japan. Key players include ExxonMobil Corporation, Shell, Phillips 66, SK Geocentric, and Calumet.