CLMT - Earnings call transcript Q3 2020 | Calumet Specialty Products Partners, L.P.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Q3, 2020 Calumet Specialty Product Partners LP Earnings Conference call. [Operator instructions] I would now like to hand the conference over to your speaker today, Joe Caminiti, Investor Relations. Thank you. Please go ahead, sir.

Joe Caminiti

Kaus. you, Thank and our everyone, for us joining Good quarter thank earnings for third results today morning, you call. and Fleming, With us Borgmann, of EVP Bruce Todd Mawer, Steve Scott Strategy of EVP Commercial. on today's Interim call CFO; are Growth; Obermeier, and CEO; and

call, allow the this on meaning Exchange XXE the available may we of course in proceed, that Act the forward-looking our based management assumptions of each as them securities Such beliefs based to Section the me Before provide statements of everyone currently various remind information during well of case, we within are to on by XXXX. statements of them. as made and,

morning and from actual filings its management reflected Please could as statements can affect latest the our them well expectations management results our for release believes the statements provide in was this on any made our factors assurances forward-looking may are of the will to differ to Commission issued that that correct. partner, the list cause be general Exchange prove to this that that nor as forward-looking Although Securities our and press partnership, the partnership's expectations refer call. with such a reasonable, neither

in now press presentation a the indicated earlier the conference release As accompany a reminder, we you may that the slides today's today. as download call will PDF of remarks on issued made

at call and pass With will Steve. relations available you hours, slides XXX-XXXX. IR investor webcast at in I'll section these within of Also, You to that, Relations the for the site Investor Alpha contact a on Steve? replay be the access call support Group of a (XXX) may can www.calumetspecialty.com. our this few website

Steve Mawer

morning, everybody. And joining Thanks, Joe. thank for us. you Good

efforts the in First third our recognize employees all, I'd like the quarter. to of of

ongoing extended progressed the For during campaign. unknown adrenaline an was quarter, reality the leap to second all pandemic us, an what the into of of from has fueled the

The measures Our team's safety tracking while ahead that to this crucial we're most eyes business ourselves adapt way transitioned pleased focus commitment And performance. colleagues at matters a are and and of shows this to well, new in learning and to testament working safe. I'm keeping keeping of our of materially XXXX. the to Calumet. is that really what my and say we're on colleagues our environmental This

is performance Thank very presentation you So resilience by on message We'll Calumet the the led a rebound recovery consumer you. our the with the This Overall, of thank industrial quarter sector. deliver resilience slide together start one much. of in the allowed X. of third US to which and results since was the with our steady then specialty very shown our great Chemicals our a bottom off results. and Lubes business, record the in core unit. Overall, year-to-date from We're has pleased topped Calumet improvement. specialty with month July was for Finished

segment's far so the trending the ahead EBITDA of XXXX. adjusted With pre-pandemic

recovery discussed more brands. outperformance all in year- specialty consumer products marked demand showed brands industrial we've across been strength and and facing by the led As products quarter. facing this our has Separately, before a across third of our over-year

has XXXX. are of still the levels, and year's hurricane volumes seasonal the still show believe and value allowed slowdown observed as the run The lean from of XX% explain months restocking bringing can industry workload to or exceptionally our and of turn and we markets lower to evolve. the resume typical September also everyone apply forward that encouragingly there could rates this that post supply a spending. markets has September focus market we signs XXXX, tightness are on to at level, year yields volumes has to uniqueness And we seeing and with today, recovery into why overall niche Fuels less factors the end by markets, cycle. grinding from across leveling of we tend industrial combination the margin they the season. The specialty some refining sales that yet specifically of actions, we of improving altered an been While, demand, Calumet, historical at year of of to chain inventory At of which us disruptions haven't business several of where this products see indications active specialties control. XXXX performance. from somewhat is of aggressively businesses. philosophy in in focused specialty our around spreading markets Total business but system last in we along case multi lockdown course the seasonal else our come In what patterns. were we're work conducive the its is a and comes the bottom demand. running impacts led These typical returned strengthening volumes deliberate And It like continue as wide local better our our maximizing re-optimize the business,

more larger than book also in was the industry. which in XXXX, many proportionately our So we run hedge a

Calumet and Montana the Given two best with is enough be are to specialties a have Northern of pandemic later northwest the the are a commented chemicals. into back little the Rockies, top deeper the two collapse, carrying fuel one into that now, is to environment, And and fortunate relatively a have global in industry. quarter, to and Louisiana. debt in places be first refining many then in in two we on our late we'll to our presentation. And complex assets be right focus our if high for or economic the to lockdown, of a the for in the that you load Taking a Louisiana stepped Northwest take unknown and start

year be hedge capital Extreme strategy, such, disruption were our we budget that XX% get most taken take approximately to cash. objective competitive of and foundational going that are was by very and yields that through that would we of this to order, finally, financial operating we this actions and those and the be reality. leverage from this excessive far team rather reset cycles costs; decisive Throughout see of year. would determined immediately a to this short period of a operated We was third safe that so clear burning we immediately actions action, consequence it compromise reducing not without reduction book. And costs cash, quarter tend year, in team. down not an it and and for As amounts were versus by operating to be thinking pandemic our significantly $XX environment. new far out reduced removed inventories the our the year, million of we Calumet. order And by our fixed with end added decisive SG&A by the credible challenge throughout the achievement in net The operations. good reliable last and accelerated Decisive we've burning XX%, but extremely on planned is our to we to positive these which through place to cash

results to a turn for more So I'll you Todd, call financial look give will over our at the detailed the with quarter. Todd? now who that,

Todd Borgmann

you, Thank Steve.

of provide highlights. $XX.X slide generated in Let's third turn Calumet where we million X quarter EBITDA quarter. the adjusted to third

million Year-to-date, and fuels specialty trending our $XXX quarter. liquidity recognize ahead the And as quarters adjusted and also of We're trends of ability of million cash in of three the and business through seen the quarter improving $XXX its this the total in cash ensuring the quarter $X $XX we've which million cash mentioned, million focused generated of by cash business markets, business available value $XX levels succeed is the Our finished XXXX neutrality, our Since million. first the core negative pandemic, and year. generated $XX.X and We specialty recent our the generated nearly segment has from flow to on prior figures from early in EBITDA. million, of in Calumet $XXX credit million Steve free specialty produced the of a most challenging with been segment both we've investors of flow. encouraged environments. even third flow indicate operations

industrial quarter. On in total and volumes. markets. second prices we versus quarter-over-quarter, facing the important provide X, consumer over has consolidated $XX.XX to barrel despite management XX.X%. specialty An These quarter. a slide both years. diverse industrial dynamic this EBITDA a our two increasing third product in results grew priority was volume As margin improving to are due last offering, EBITDA margins of strategic a while adjusted our margin gross was been the return profit bridge year specialty in QX gross was our from in profit second recognition development Specialty XX% business crude the brand the largely quarter and adjusted to of At the specialty

year-to-date the have the shrink timeframe is on profit As a to increase $XXX.X RINs. negative effect. the impact we due last fuels bridge, year. the encouraged X basis $XX this mix occurs, by Slide as But volumes will In adjusted volume fuels we EBITDA benefit. compares of our margins total million a barrel per total, and same to of which million margins, are

we than a margins basis, a annualized $X.X compared don't $XX XXXX. reiterate, specialty for less operating same costs the Last, $XX.X this our take pandemic. to versus and year. of SG&A improvement this reductions transportation bold on time an are during volumes period extremely combination million last contrary, is represent proactive response proud net million To and the On XXXX. expense employees our SG&A their and improvement and of lightly, controllable to We million the

Let's turn slide X. to

million margin last period This points good third the growth million our to was in consumer Third of business quarter fueled facing compared XXX and basis a brands quarter. The food wax including or well $XX $X.X demonstrate to the recovery business The track to continued specialty year. of pace. and And continue last also performed X.X% as has was segment, Purple our business EBITDA same But improvement consistent expansion integrating demand by retail pharmaceutical TrueFuel, is the to and outperforming and Chemical and been in Royal Finished grade brands. has and Paralogics expectations. robust. well industrial Bel-Ray Lubricants year's

returns team's and in details on laser volumes diversification the placement sales industrial quarterly X segment. product effective Slide industry results demand margins managing Our the continue pandemic normal. to fuels and will focus a throughout our been as in the

prior the negative spreads. largely both by compared year of million the down and and EBITDA adjusted quarter to crack compression driven Third quarter, sequential was $XX.X

a benefit we can to in this what our continue from on advantages business geographic We with control. focus

-- of For markets, recover. intend fuels the volumes have from record sales this business local our quarter, an to advantage into markets to we when example, is achieved continue we rack benefiting continue which

uses the slide here of we cash to bridge Turning sources X, and today.

with operations from the our from Management we flow on importantly, where total cash finishing You position million snapshot discipline $XXX $XXX.X up the credit $XXX $XX.X a year-to-date. improved contributed cash flow, million began XX, to quarter and Capital million slide versus $XX.X we to cash mentioned, has free of just Working cash of can of quarter also we the provide this hand. year over On year-to-date we see led metrics. finished of CapEx of the million $XX.X Most of year. second million the that With of generation million which produced with our cash $XX I liquidity, million quarter.

on overall continue the leverage back turn I'll to business with focus to improvement our Steve. to components that, reduction to remain cash call sheet key With and We balance day flows, operate the while day strategy. a

Steve Mawer

Todd. you, Thank

focus have TrueFuel through our been investor two Let's quarter's reviewed our and deeper how slide the covering lot versus dive covering we one feedback. of volume The margin In go pandemic. received to performing a envelope items, appreciated XX. business, specialties last another call

to we what intent further so help is story. and you to And in our are understand to order continue our up sharing

it Louisiana. good includes northwest call us. production facilities CalTran oils, sites So oil minutes production on of largest for given is Calumet specialty Princeton as Louisiana serves of for our we processed and a high solvents, under thought in today's electrical integrated Valley and US. complex and collectively oils. might Princeton the Magiesol industry couple product interconnected that industrials, Conosol Cotton brands. brands in largest are petroleum roles known such on focus facility to spend product naphthenic at Valley's HydroCal our the Shreveport, Shreveport, complex specialty facility, recovery our of the be is Cotton base and in three marketed the distinct yield

a into applications, spray heart parafinic base agricultural variety is which is growing CalPar our industrial sold oil. is is on the rapidly specialty into wax Shreveport focused sold Orthex, through brand, Shreveport the oils, is which which of a most First, known with Titan brand our particularly candle business also of together well at branded industry.

have businesses Calumet an other What most businesses the other custom other includes deliver stable Shreveport distillation performance The specialty optimization Shreveport which we and solvent And exchange a other plays across flexible Calumet value. around for platform downstream, these intermediates role flywheel base even for envelope, the is together, into particularly is feedstock is downstream extremely third, in collectively, asset gels, entire second together formulated than focused it's the on and which sites provides further segment our at reach in coupled flexibility Louisiana specialty of interconnected extended businesses manufactured further catalytic proximity other blended geographical hydro locations. pressure operating sites the and dewaxing. treating results Shreveport and in facilities extraction, brings these with all white The petrol waxes, the oils, XXXX. growing our strength to items Calumet with

product flexibility. set petroleum assets. specialty how optimize this work of continuously the we on us gives scale this a flexible And real unique and business, to Within

to And consumer So remarkably that is up, long slide specialty US as should now our facing positive on remains XX. it hold. our holds on outlook data our consumer trajectory expectation on as that good.

industrial inventories actions. supply of cycle. upon to mode, a and currently near is recovery Our that we be often business the good seasonal And well slowdown bottom see we the in And into are yet continue is controllable position. will to appear not Fuels focus on us. its brands chains

emerge a burn, the costs, helped Operator? once decisive Q&A. position us to in the to to marketing with that, through the have hedging turn turns. Our without pandemic the this business the to And and actions far strongly cycle on open good Calumet up call I'd like got have over strategies, for cash and line for operator

Operator

from first line Sachs Neil the Your Goldman comes Instructions] Mehta [Operator of question with

NeilMehta

lubricants reflected the the world have incremental Good yet? monetization to a the that Look, I on that might morning, is is were now? of And, you money Just unit that don't question speculation want here. But that your assets to for here. it we potential guys. and do the monetize of value about provided appreciate reports press And around be of some the enter business. course, to we your of price unlock business? amount the try Shreveport How color thoughts -- on that there first core around certain potential right lubricants to not being in those for

SteveMawer

doing? call. you how our you It's Great, have Neil. Steve, good to on

year-to-date goods you future inside chemicals the business and substantial. has in that I And business know, has taken we power As of the COVID finished is growth stride, really mean, brands all its record. through, set potential the believe a this

As as a value is management, business And now, further it hit that. us. that I any potential Calumet given it's be can't that is reviews the commentary significantly. what valuation quantum company, any and growth Neil, I would speculative, leverage from you the the on cash out debt people think of to Board potentially that on, market product understand stewards responsible think for synthesis flows, as importance. really of of strategic And reaction beyond I hypothetical highly clear this comment change speculation It's situation and would that right continuously

NeilMehta

Yes, is right the what I'm than questions a is Results softer there'll around out I investors And differentiated today. in And no, which in lot sense now. around most a of little came WCS, clear. asset. good sure a other that it think expecting a runs of very is the crew that have this asset were grade it I is follow Great be Falls. up

WCS function do one think just you anything to about And do as if forward or from have out over about you're losses what you into a going crude start time? business or At time product fuels the how environment. been before the back levers XXXX. wind of could then minimizing and it's that talk Just unusual curve, the prices have

BruceFleming

This Neil. Hi, Good morning. is Bruce.

Of course, Shreveport together. we're and fuels Great reporting Falls

key to and the last been you have actually which summer, to And it's incrementally a not is affected aggregate, than environment the adverse. want but we up by Falls about would year. there. fuels of facility, Great a narrower, leap noted business for WCS margin gross had softer course, environment the you as that, either over is So contributor is I to in conclusion everybody

this with pandemic. made, to points country proof So the that is of all part the basis, be good being refiner. on obvious -- this that the facility And run volume the that has is a throughout a a fall throughout of

NeilMehta

through as are losses order in to guys steps order in as have do XXXX, to, pull drive to that you then levers work we minimize you to And the go taking you into what pandemic?

BruceFleming

operational think and tracking everybody; very market as we're us our positions output matching volatile hung same tell operational It's I as on for the you, two seeing demands a million demands. $XX.X our pretty is to the what Well, facilities the I'll been well, this fundamental nimble prices from year, customer hickey to levers for the and competencies. local given closely, everybody. are the in opposed change But we've skyrocketing from most I think re-optimizing RIN you're of there pretty in

Operator

Your line comes next Fargo. Wells question from Read Roger of with the

RogerRead

Good thank morning. Yes, you.

Okay. Yes.

we was year volatility tremendous in had were through of mid lot all to You're specialty. I you a I a I are just look like since do the of in I'd I'm thinking in amount things like kind year. nervous. you we a early about mean, of stable out. curious, And of definitely able blank, what to volume improving a driven. little little more sounds crude it terms guess get this of right; sure getting what is a as pricing, kind

that do able with and across all heard inventories. fixing of of of in just sudden expect And up, out mixed business, how there? extra been in lot places issues you the everywhere, was on down just was demand But that And I or if everybody, affected have curious to recovery, that been time that of of a the to then We sort any the any what a then we've through. maybe margin that's crept all has run across a question. up have just you popped capture coming there so And pricing? your have

ScottObermeier

Roger, profit at take was at over Good but weigh morning, first if here crack were a presentation, of and needed, view, on me it we Scott the mentioned the during product to in, and first look when but type the Todd mix, barrel. results Robert. let it per $XX barrel the still

think we volume I for what to up if a really ramping were perspective, But ago. ago led So a barrel barrel normalization. just came $XX the little back Roger, industrials, the saw closer started as the back years just during two go where bit to above for more quarter, up just a still margin by even back those we few basically you it's years

$XX some So think et the margin. refining remain barrel in rates, relatively lower hurricane cetera. plus impact, And There's as QX two solid still I out inventories low is there. we're the

overall chain supply the and pretty firm overall out the market is the demand think I and supply overall. there

RogerRead

margin. I or of priced of you product type Yes, lot cut to guess that low -- offerings low margin, lot back a on I things, appreciate I'm that. improve did a

made, was seeing we I I'm whether So high at changes really it, when in can XXs were to looked actually previously compare that and or changes market. the already the recognize XXs high not the you sure I've

at to there. really with the trying question was get that's what So I

ToddBorgmann

don't you right market crude the prices demand about the And at we we is the Yes, versus Roger, strong industrial that sort said XX% look I something side. I yet too tells and the you returns, This are just crude resilience this. anomalies. and kind chime of Like consumer QX specialty substantially. see of some all crude think QX, is in think while margins this And of you markets now. prices, bit can Todd. a increase this guess, when on a little I is vary hold in

SteveMawer

I of first clearly all And how up just feel this it. mean, when we And more you in could Roger, give the from back cuts couple about we to I days to we anyone. to specialties anecdotal is, think a observations, as we period few sell had of maybe Steve, price a Todd, if a material any mean, I some a crude complex. on didn't had see add

is shows the to are And So tight. I trucks indicators get generally, good the to then the best one problem, sustaining difficult chains that that that there's me, very bad of news, it's chains but and I supply you have one facing way, we're think just truckers. feeling think best, news tightened a of supply that

us that now. tight so is just tells how And right situation

RogerRead

I kind say up for That the been good. And cash what of through, companies the that, terms management? wrinkles most participate we completely an What Act MLP, been that company. Todd. laws mean, flow, cash of Obviously, cash or as recoveries? question strong. do tax we beginning of generally guess y'all the the at to the, a the this or cover my next to come in in Okay, like brutal tax on end something business, dovetails follow if through expectations of then could there you, I look if Calumet terms for I tax is unrelated were hearing. need CARES any we've there into just of I for year didn't just then anything but potential And the flows, benefit company's in anything what's it's a I'll the say not any speaking, I'll under know come know on year,

ToddBorgmann

enough. Sure, Roger. Thank

to rest as uncertain what it's of the there. far XXXX, As expect out XXXX, world quite an in

look to too forward far. hesitate I'd So

specialty. can I the same the remain into We're we've on you to Our more to far on that. seen cash goal No flow be so fourth quarter in neutral that. what change is is tell committed XXXX. What does of

industrial we that see So strong; for continues facing any to continues, return reason strength be industrial, the consumer relative strength don't change. to

But -- industrial yet. do earlier, have seen brands. we we the particularly I not see quarter, typically, in seasonality it's you those like in difficult As the because in said know the fourth

good, far different. see So we may so something

far, so so And good.

RogerRead

can for forecast a as these Gentlemen, time. days. good as thank Probably anyone the make you

Operator

comes question with of Gregg the next America. Brody line Your from Bank of

GreggBrody

about And your lubricants about to think other the any just Is businesses? separate business. easy there market it? these doing limitations assess that? but speculation, it finished just on you is question up that to know it Are I from to the what this businesses following

SteveMawer

So would the I the up guess integrated, is strategically are integrated. they're businesses currently way that of kind we but not frame it

So the shared we key don't have simplest, maybe base. between point any asset primarily other of finished the kind facilities, geographically, lubes business our and

finished XX the lubes there's it's an that's a So real miles put or complex anything like have Shreveport didn't obviously we talked there I that's little Gregg, the distribution the of in bit because from and have but major we facility packaging for now and in away, as pipes where just integrated like about mean production TrueFuel estate we line, a that we slide on integrated well Shreveport, so base. but business no asset

GreggBrody

Got it.

strategically it aligned. So is

it so, to If what I do is interrelated. separated? anything you, be simple there arduous? just Is are steps that; to is they Or guess they So get the do? how fairly would that's it

BruceFleming

Bruce, this around little Greg, Hey, a might I context more this. give

absolute got we back a of forth. we separation, if but the a report we of molecules the level clear is look moving we've are and at up, arm's and there company Part legally, have we roll of internally, business how each to for isolate length is isolates first general of ability have very that performing. to assets P&L the all, the structure high them So purposes our that obviously,

that Now, it as you got lubes of a in I be the probably getting thinking and want you about on it track. But overheated in a everything speculative as finished think is separable here. is want integration, virtual to, right physical, component, interest if Think little we've to if the separable not way. keep you'll

GreggBrody

it. Got

said -- Is Just for specialty there like volumes sounds It appreciate exactly you're did back year has attacking. this year, intuitively, -- the the is hear that how this of just you been this to challenges the business, correctly? year's October, I quarter, all chemical last knowing as one of forecasting color volumes. on COVID for I of that is

SteveMawer

had I I an trajectory, said September upward think trajectory. had to we specifically. pronounce that word. we were We've We've -- sorry, an upward struggle

quarter During in the third XX the lines and September XXth the met and lines.

GreggBrody

fair historically you're that And it September and not based what telling specialty could is last higher have year, say were seeing the volumes quarter? seasonality numbers fourth at last you seen than that you on normal in to So year? this you're theoretically us, be that the quarter

ScottObermeier

Gregg, Scott. think would yes. And say comes not. seasonality I if card or theoretically, becomes I play into wild the

We haven't yet. it seen

know may just So going a at minimum be the appears and it delayed. that come but we yes. that And seasonality it's don't if to not or

SteveMawer

deal. And numbers, just on we're volume, add could the if a is like that giving comment I like accounting pro a processing in you technical the forma, because XXXX, we had

that the in you to attack want if need bear Q, mind. you forensically So to

GreggBrody

then me. could add more. maybe last for Actually, two question And just it. Got I

quarter, RINs around on of How state, stay If we First a business? this is here, steady your impacting think should I'll refining thereafter. and say headwinds. that, we all, about for

ToddBorgmann

But think you like just as that we as reactive we have strongly are insights can. market prices is would that blend do to could any wish developments. against We or chaos, headed. We not the the ethanol least to blends to absolute political more. on assured We want in and ethanol. system policy where RINS, markets at I shortfall; operation accrue we much I

world. I reform the So of tell that the before waiting all the RFS like rest we're you can is

GreggBrody

for just appreciate last one you. No, it. that. Got And I

down up? you to there's Is of kind go the SG&A sense talked If a savings that's levels? this further? about it it recovery? go So necessarily year. you substantial your need had sustainable Does it Does at those

ToddBorgmann

the some things travel as of change think majority of Yes, comes contract and no. as a things Naturally Gregg, changes the more But sustainable. made made SG&A. structural step of back, types part, it's services, are like and road regression. that And far for the headcount, it. sustainable. we in we see and those We business kind of most as say it's I'd we'll keep as expect outside mostly in There's bit the been Todd. we've hit to that, a little

Operator

next Your Jason line from Cowen. of comes question the Gabelman with

JasonGabelman

just about to the holding And thinking obviously specialty it deals, on a have, think least for couple kind to that I business, And if or plan are about the how needs core. term think that. And as business? at of you seems going in there ask the some on get lubes term you're you refer you where non that to debt-to-EBITDA attacking morning. parts to consider levels you about to if questions on a side. there there's on just I think maybe to then wanted Good Falls relative thoughts you refining of transacting side that's view want this but like organically, other longer and around -- so the you previously the do can be given to on $XXX be a something the tangential that been difficulty now, of there in years, first finished about of think part something just million be notes the to how you long next lot Great you that to is less core due inorganic anything Thanks. of

ToddBorgmann

Thanks, is Jason. This Todd.

that's all questions a you longer bit the it take over the first about upcoming mentioned. question, Steve your turn more part debt, if on some the kind the little me I'll Let term talk of to to of and of right,

QX, have we in a with we're left far very exchange XXXX. XXXX, some maturing We million, that's as $XXX in remember, think and just we manageable amount, so flexibility. So the as did

cheapest million the we've generating $XXX we we been the at So cash. about of just It's have talked debt moment, liquidity.

as go kind we to optimize some of comfortable and time give to willing current, we're our ourselves options. So

part guess want that speak bit, questions Steve, hopefully a be little do of I and would of one your some longer you So to term? the

SteveMawer

like tell on and be let to golfer, Yes, might me, golfing golfer, analogy, forgive right, facetious. talk golfer. want deleveraging, a I little a of kind that I better than here make leveraging I scratch be golfer. be that or sound a the better sit a you me could I an let's a a be scratch want to rather I I'd about if to like use And answer mean, to from I'd

of to give of the what But some and And business is, clearly path look model mixed say board, clarifying from I'm deleveraging. perspective. our aspirational target is So forward. the not combination cost that going at an our capital that managing

there back you If path I think that organic to now January, say And forward. February, organic much less. clear go forward right very was is I a path

about we're a we our through of thoughtfully how of look addressing continuing issues. So reduce two cost those can combination to capital

the the hope third I of one. and second So on kind then that one covers

refresh to me. have You

JasonGabelman

there's something was yes, that of the historically, Just -- you you is I the just there as question, which guess specialties the last the mean, core was lubes other kind around, in to as of parts of of Fall segment? to lines the I necessarily business core consider within the finished business not not non core, tied it along it but refer non Great conversation just kind about

SteveMawer

very some a think growth it. but got like we in be satisfying difference all we see across opportunity, has pretty growth answer. in at not look like, we I we're this everything I mean, Yes, of may specialties everything much doing we opportunities

you flows, importance So particularly obviously Bruce, of hand some to earlier, and just over think kind strategic all then look importance. which of that synthesis pivot a kind to of I his back and whenever growth, to take strategic And want I relative said is strategic overlay, at of degree importance. it to we valuation, but Bruce a what going of add? is get to tactical is maybe has potential be cash it's

BruceFleming

thank longer XXXX, term bit Todd's foundation go December at if of maybe back of a that if debt. a you we has the quarter, give nature to And your out interest. And journey, Sure, of that kind report XX, $X.X this billion. we Appreciate putting billion little strategic the $X you. Steve, had of

things us investment we improving that the of debt was site the and and long funded two level a I over deal million took and Those it level, also against inward at $XXX activity. business period our So great at the of debt balance individual that between organic part. inroad structure made a the of care term just good that mentioned, M&A time,

into Covid pretty balance. the indicated, the we're sailed reasonably going as that Steve And storm. actually with until pleased really So we well, was

to So we'll see. do But we like think balance. about

draw compared our take assets that's inflexible look versus so how a core, and list people it. probably we core somewhere of at to want And say line when and little non to a think about

looking So think way, looking the the that If we're would the something bit rotational, don't that or backdrop, is We're it mix. context. just business we've got diversification be to that cycles about portfolio. both the up. sync at it a that bolt-on, you off, a if pieces strength, against at this, of And was the

Operator

to are like no time, at Caminiti. And turn over the questions. call this back I to Mr. Joe there further would

Steve Mawer

Joe, me you want wrap? to

Joe Caminiti

it's Steve, call. ahead, Go your

A -SteveMawer

Thanks.

appreciate a XXXX We've great I face at in taken in Thank significant uncertainty. extremely you. a do I Okay. Calumet. these and about call. team on your at Appreciate level long would of again, position earlier. can term talking forward Have I I being can want in weekend. at on both XXXX. good now of point working we interest actions days, everybody I I'm the time the high protect proud The was we're success. seeing you Calumet. to to and your everybody play when has challenges out and hard again all Calumet And executed has the pandemic. golf time. the I to the you, look business assure what getting proactive day Well, through thank for golf to throughout

Operator

today's gentlemen, that conclude does conference and Ladies call.

now may disconnect. your You Thank for participation. you

Joe Caminiti	Investor Relations
Steve Mawer	Chief Executive Officer
Todd Borgmann	Senior Vice President and Interim Chief Financial Officer
Bruce Fleming	Executive Vice President of Strategy and Growth
Scott Obermeier	Executive Vice President, Commercial
Neil Mehta	Goldman Sachs
Roger Read	Wells Fargo Securities
Gregg Brody	Bank of America
Jason Gabelman	Cowen and Company

Calumet Specialty Products Partners (CLMT) 6 Nov 202020 Q3 Earnings call transcript