Calumet Specialty Products Partners (NASDAQ: CLMT) reported Q2 EPS of $0.09, $0.13 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $929.6 million versus the consensus estimate of $713.22 million.

Management Commentary

"Calumet delivered a strong quarter of both financial and operational performance, generating $64 million of cash flow from operations," said Tim Go, Chief Executive Officer of Calumet. "Our quarterly Adjusted EBITDA results of $76 million (excluding LCM/LIFO) represented a 34% increase versus the prior year, driven in part by solid execution, the absence of the Princeton turnaround last year and Self-Help structural improvements. This improved operational performance drove record utilization and multiple throughput records across our plants. The Company has generated $154 million of cash flow from operations for the first nine months of 2019, much of which reflects the structural changes that our Self-Help program has delivered, which more than offset the headwinds of the significantly less favorable crude differentials. Calumet's financial metrics continue to improve, with our leverage ratio improving to 4.2x Net Debt to trailing twelve-month Adjusted EBITDA, down two full turns from 6.2x in last year's third quarter."

Go concluded, "In addition, Calumet continues to deliver on our key strategic objectives, most notably the refinancing of the Partnership's 2021 debt, as we pushed the maturity out to 2025. This improved debt maturity ladder and the overall reduction in leverage represent significant progress in Calumet's ongoing balance sheet improvement goals. Second, the Partnership recently announced the divestiture of the San Antonio refinery, which in addition to improving credit metrics, is expected to further improve Calumet's cash flow performance and reduce volatility in our earnings by reducing our exposure to commodity fuels markets. Finally, our Self-Help program captured an additional $6.3 million Adjusted EBITDA in the quarter, and $27.8 million Adjusted EBITDA during the first nine months of 2019."

For earnings history and earnings-related data on Calumet Specialty Products Partners (CLMT) click here.