Calumet Specialty Products Partners (NASDAQ: CLMT) reported Q2 EPS of ($1.89), which may not compare with the analyst estimate of ($0.34).

"We remain focused on strengthening balance sheet liquidity, reducing operating costs and pursuing self-help margin capture throughout our portfolio of assets," stated Tim Go, CEO of Calumet. "We made meaningful progress in each of these areas during the second quarter, despite a material year-over-year decline in benchmark refined product margins, elevated RFS compliance costs and continued commodity price volatility."

"During the second quarter, we divested our 50% joint venture interest in DPR, resulting in a $32 million net increase in Partnership liquidity, raised $400 million through a senior secured notes offering and suspended the payment of our quarterly cash distribution to unitholders that amounted to nearly $225 million of cash outflows in 2015," continued Go. "These decisive actions serve to strengthen our balance sheet in a continued volatile market."

"As of June 30, 2016, we had nearly $470 million in cash and availability on our revolving credit facility, even after $30 million of related party note repayments and $42 million in cash interest payments on outstanding unsecured notes during the second quarter 2016," continued Go.

"Targeted cost reductions and disciplined expense management have resulted in significant savings on a year-to-date basis," continued Go. "Total selling, general and administrative expenses declined $38 million in the first half of 2016, when compared to the prior year period."

"We continue to source increased volumes of cost-advantaged feedstock in our refining system, resulting in a lower overall per barrel delivered cost of crude oil," continued Go. "In the second quarter 2016, we processed a record 35,600 bpd of cost-advantaged heavy Canadian crude oil at our Superior and Great Falls refineries."

"Although specialty products sales volumes increased on a year-over-year basis in the second quarter 2016, a rapid escalation in crude oil prices during the period impacted segment gross profit," continued Go. "We enacted price increases in the specialty products segment in June 2016, in response to higher feedstock costs."

"Looking ahead to the third quarter 2016, we anticipate increased margin capture within our specialty products segment, following recent price increases. In our fuel products segment, we continue to sell gasoline, distillate and jet fuel at a premium to the Gulf Coast in our local markets, although benchmark refined product margins remain constrained by elevated domestic fuel products inventories. We expect our asphalt business to reach a seasonal peak in the third quarter, allowing for the conversion of existing asphalt inventory to cash ahead of the winter," concluded Go.

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