OREANDA-NEWS. Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership," "Calumet," "we," "our" or "us"), a leading independent producer of specialty hydrocarbon and fuel products, reported net income for the third quarter ended September 30, 2014 of USD 9.4 million, or USD 0.08 per diluted unit, compared to a net loss of USD 34.8 million, or USD (0.54) per diluted unit, in the third quarter 2013. Third quarter 2014 results include USD 25.6 million in non-cash unrealized derivative losses, compared to USD 2.4 million non-cash unrealized derivative gains in the prior year period.

Calumet generated Adjusted EBITDA (as defined below in the section of this press release titled "Non-GAAP Financial Measures") of USD 107.5 million during the third quarter 2014 versUSD 38.3 million in the prior-year period, driven by improved utilization at key fuels refineries, a year-over-year improvement in benchmark refining margins and strong demand for refined products.

Distributable Cash Flow ("DCF") (as defined below in the section of this press release titled "Non-GAAP Financial Measures") for the third quarter 2014 was USD 71.3 million, compared to USD (16.0) million in the prior year period. The year-over-year increase in DCF resulted primarily from significant growth in Adjusted EBITDA and lower turnaround costs, partially offset by higher cash interest expense.

Management Commentary

"During the third quarter, Adjusted EBITDA increased to near-record levels, distribution coverage reached 1.4x and our key refineries operated at or ahead of plan," stated Bill Grube, Vice Chairman and Chief Executive Officer. "Strong system reliability and seasonally robust refining economics, were among the key factors that contributed to our strong third quarter results."

"Our slate of organic growth projects remain on track," continued Grube. "We are finalizing pre-commissioning work at our Dakota Prairie joint venture refinery, scheduled to reach completion by year-end 2014. Further, together with our joint venture partner, we have secured crude oil supply relationships with multiple established producers in the local market who are capable of supplying Dakota Prairie Refining with cost-advantaged Bakken crude oil, the majority of which will be delivered by third-party pipeline once the refinery comes on stream."

"Having concluded the turnaround cycle at our four major fuels refineries during the past two years, we do not anticipate major maintenance-related capital spending at these refineries until the 2018-2019 timeframe," continued Grube. "Our Shreveport refinery, which concluded planned maintenance during the second quarter 2014, operated at approximately 43,000 barrels per day during the third quarter 2014, well above historical averages. We want to congratulate all of our refinery personnel on their continued commitment to safety and reliability."

"Our leverage ratio, as defined by total debt divided by our trailing twelve month Adjusted EBITDA, improved substantially between the second and third quarters of 2014, declining from 7.4x to 6.0x," continued Grube. "Long term, we remain focused on reducing our leverage ratio below 4.0x."

"We remain committed to maintaining a distribution policy that provides for consistent cash distributions to our unitholders,"stated Grube. "On October 21, 2014, we announced a quarterly cash distribution of USD 0.685 per unit for the third quarter 2014 on all of our outstanding limited partner units. Long term, we continue to target a distribution coverage ratio in the range of 1.2x to 1.5x."