Calumet Specialty Products Partners (ticker: CLMT) last week released its fourth quarter 2014 results. The independent refiner reported a net loss for the quarter ended December 31, 2014 of $63.5 million, or $(0.95) per diluted unit, compared to a net loss of $15.5 million, or $(0.27) per diluted unit, versus net income of $3.5 million, or $(0.17) per diluted unit, in 2013.
Excluding special items, CLMT reported adjusted net income of $65.5 million, or $0.86 per diluted unit, for Q4’14, versus an adjusted net loss of $20.1 million, or $(0.34) per diluted unit, for Q4’13. The company’s Q4’14 losses included six special items: a change related to a lower of cost or market inventory adjustment of $72.8 million; a $31.8 million loss related to the liquidation of last-in, first-out inventory layers; a $16.6 million gain on the early settlement of select 2015 and 2016 crack spread derivatives contracts; $23.2 million of unrealized derivative losses; an $18.2 million gain on sales of Renewable Identification Numbers related to the CLMT’s retroactive exemption from compliance with the U.S. Renewable Fuels Standard at its Shreveport and San Antonio refineries for 2013; and a $36 million goodwill impairment charge related to the acquisition of two oilfield services companies, Anchor Drilling Fluids and Specialty Oilfield Solutions.
Calumet reported adjusted EBITDA of $76.4 million in Q4’14 and $305.9 million for full-year 2014, versus adjusted EBITDA of $53.2 million in Q4’13 and $241.5 million for full-year 2013. That represents a 44% increase from Q4’13 to Q4’14 and a 27% increase from full-year 2013 to full-year 2014.
Distributable Cash Flow (DCF) for Q4’14 was $38.2 million, compared to $10.6 million in the prior year period, a 360% increase. Full-year 2014 DCF was $142.9 million, compared to $18.5 million in 2013, a 772% increase year over year.
A note released by Wells Fargo Securities said, despite Q4’14 results and near-term outlook updates being a “mixed bag,” that “CLMT has begun to turn the corner with the distribution coverage improving to 1.0x during H2’14 after several disappoint quarters. We expect the distribution will continue to improve based on organic growth via project start-ups plus a lift from recent acquisitions.”
Based on data compiled by EnerCom Inc. of 69 MLPs, Calumet’s most recent dividend yield ratio of 9.8% is above the group average of 6.4%. The company’s TTM total return of 22.9% and FCF/unit of $0.33 are both above of the group average of 6.4% and $(0.05), respectively.
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