2024-07-25 12:00:49 ET
Summary
- Calumet Specialty Products unit holders voted to convert from an MLP to a C-Corp, aiming to become a premium specialty and low-cost producer of renewable energy.
- The company's future outlook includes factors such as a review of last quarter's EBITDA, EPA regulations affecting RIN prices, a potential DOE loan, and cost reductions.
- MRL plans to convert into a higher margin SAF production facility, with potential for significant profits.
- Progress will be lumpy.
Calumet Specialty Products ( CLMT ) completed a needed step forward towards transforming into a premium specialty plus lowest-cost producer of renewable energy. On July 9th, unit holders voted in favor of authorizing a conversion from an MLP to a C-Corp. Non-distribution paying MLPs have a characteristic of being ill-liquid. This change opens doors for liquidity and a deeper ownership. Still, many meaningful markers lie in front. This is a continuation of many articles written on Calumet, the last, Calumet Specialty Products Endured Rainy Days With Blue Skies Ahead , discussed the nature for a likely revenue bottom with respect to Montana Resources. Is this important step, conversion of the company, a sign of good, better and best things to come? Is the necessary temperature and pressure needed to convert coal into diamonds now pressing on the company? We believe it is.
The Future
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Calumet Converted To A C-Corp, So What's Next