Calumet (CLMT) Status Update summary

DOE Loan Closing and Project Expansion

• Closed a 15-year, $1.44 billion DOE loan at Treasury plus 3/8%, with an initial $782 million disbursement and no servicing required until project completion in about four years.

• The loan is structured in two tranches: Tranche 1 ($782 million) disbursed in January 2025, Tranche 2 (up to $658 million) as a delay draw term loan through 2025-28.

• Proceeds will retire $535 million in existing debt, add $193 million cash to MRL, reduce intercompany payables by $205 million, and provide $150 million in new cash investment.

• The MaxSAF project will increase SAF capacity from 50 million to 150 million gallons in two years, and to 300 million gallons annually thereafter, with the first phase costing $150–$250 million.

• Montana Renewables' 45% project investment is expected to be funded from operating cash flow, with the DOE providing matching draws.

Financial Performance and Outlook

• Pro forma consolidated net debt post-DOE loan is $2,171 million, with $1,582 million pre-MaxSAF serviceable debt.

• Average consolidated cash flow before fixed charges is ~$424 million, and Adj. EBITDA is $375 million.

• MRL expects free cash flow of $65–$85 million at a $1.50/gallon market index, with $140 million Adj. EBITDA prior to MaxSAF expansion.

• Consolidated 2025 capex forecast is $78–$117 million, with $50–$70 million for the Restricted Group and $28–$47 million for MRL.

• Calumet's business outside MRL is expected to generate $95–$115 million in average free cash flow, with $120 million in net annual interest payments.

Market and Strategic Positioning

• Montana Renewables is positioned as a first mover in sustainable aviation fuel, leveraging regional feedstock and access to key low-carbon fuel markets.

• SAF market is supply-constrained, with premiums of $1–$3/gallon over renewable diesel, and global mandates expected to keep the market short for years.

• Largest agricultural investment in Montana, doubling feedstock procurement to ~3 billion pounds annually.

• Feedstock flexibility and access to multiple credit markets provide a competitive advantage, with the PTC and other incentives supporting margin optimization.

• Expansion includes modular projects: second reactor installation, renewable hydrogen, feedstock pretreatment, and efficiency upgrades.