Calumet Specialty Products Partners(CLMT) - 2023 Q2 - Quarterly Report

Financial Performance - Total sales decreased by 18.5% to $2,054.7 million in the six months ended June 30, 2023, from $2,521.9 million in the same period in 2022 [48]. - The Performance Brands segment saw a $11.0 million increase in sales for the six months ended June 30, 2023, compared to the same period in 2022 [50]. - The Montana/Renewables segment's gross profit decreased by $75.8 million for the six months ended June 30, 2023, compared to the same period in 2022 [51]. - The average sales price per barrel for Specialty Products and Solutions decreased by 13.6% to $135.83 in the six months ended June 30, 2023, from $157.21 in the same period in 2022 [48]. Cash Flow and Financing - Operating activities used cash of $52.6 million during the six months ended June 30, 2023, compared to providing cash of $86.8 million during the same period in 2022, primarily due to increased working capital needs for the Montana Renewables facility [35]. - Financing activities provided cash of $268.2 million in the six months ended June 30, 2023, compared to using cash of $2.6 million during the same period in 2022 [54]. - The company believes it has sufficient liquid assets and cash flow to meet financial commitments for at least the next 12 months [53]. Expenses - General and administrative expenses increased by $4.8 million, or 21.3%, to $27.3 million in Q2 2023 from $22.5 million in Q2 2022, mainly due to a $3.1 million rise in equity-based compensation expenses [47]. - Capital improvement expenditures rose to $176.5 million in the six months ended June 30, 2023, up from $152.0 million in the same period in 2022 [55]. Debt and Interest Rates - As of June 30, 2023, the company had $179.0 million in 2024 Secured Notes, $413.5 million in 2025 Notes, $325.0 million in 2027 Notes, and $325.0 million in 2028 Notes outstanding [41]. - As of June 30, 2023, the company had $74.8 million in borrowings outstanding under the MRL Term Loan Credit Agreement, with interest rates ranging from SOFR plus 6.0% to 7.3% per annum [69]. - The company reported $181.1 million of outstanding variable rate debt as of June 30, 2023, an increase from $104.0 million as of December 31, 2022 [69]. - A 100 basis point change in interest rates on the company's variable rate debt is expected to impact net income (loss) by approximately $1.8 million per year [69].