Calumet Specialty Products Partners, L.P. Reports Third Quarter 2012 Results

 Calumet Specialty Products Partners, L.P. Reports Third Quarter 2012 Results

Significant items to report are as follows:

- Quarterly net income of $42.4 million.

- Year to date cash flow from operations of $289.4 million.

- Quarterly Adjusted EBITDA of $121.4 million and Distributable Cash Flow of
$92.5 million.

- Quarterly distribution increased to $0.62 per unit, a 5.1% increase over the
second quarter of 2012 and a 24.0% increase over the third quarter of 2011.

PR Newswire

INDIANAPOLIS, Oct. 31, 2012

INDIANAPOLIS, Oct.31, 2012 /PRNewswire/ --Calumet Specialty Products
Partners, L.P. (NASDAQ: CLMT) (the "Partnership," the "Company," "Calumet,"
"we," "our" or "us") reported net income for the quarter ended September30,
2012 of $42.4 million compared to $19.6 million for the same quarter in
2011.These results include $22.1 million of noncash unrealized derivative
losses as compared to $20.3 million of noncash unrealized derivative losses in
the third quarter of 2011. For the nine months ended September 30, 2012,
Calumet reported net income of $160.0 million compared to $16.2 million for
the same period in 2011. These results for 2012 include $11.3 million of
noncash unrealized derivative losses as compared to both $23.9 million of
noncash unrealized derivative losses and $14.4 million of noncash debt
extinguishment costs for the nine months ended September 30, 2011.

Earnings before interest expense, taxes, depreciation and amortization
("EBITDA") and Adjusted EBITDA (as defined below in the section of this press
release titled "Non-GAAP Financial Measures") were $91.4 million and $121.4
million, respectively, for the quarter ended September30, 2012 as compared to
$47.1 million and $70.5 million, respectively, for the same quarter in 2011.
Distributable Cash Flow (as defined below in the section of this press release
titled "Non-GAAP Financial Measures") for the third quarter of 2012 was $92.5
million compared to $50.5 million for the same quarter in 2011. The increase
in Adjusted EBITDA quarter over quarter was primarily due to a $61.8 million
increase in gross profit partially offset bya $6.3 million increase in
realized derivative losses, and an increase in selling and transportation
expense. See the section of this press release titled "Non-GAAP Financial
Measures" and the included tables for a discussion of EBITDA, Adjusted EBITDA,
Distributable Cash Flow and other non-generally accepted accounting principles
("non-GAAP") financial measures, definitions of these measures and
reconciliations of such measures to the comparable U.S. generally accepted
accounting principles ("GAAP") measures.

"Our third quarter results were driven by strength in our fuel products
segment and the addition of Royal Purple to our specialty products segment.
We continued to benefit from widened crack spreads from Canadian heavy and
Bakken crude oil differentials to NYMEX WTI in the third quarter. We are
also pleased to add the Montana Refining employees and business to Calumet
starting in the fourth quarter," said Bill Grube, Calumet's Chief Executive
Officer. "The acquisition of the Great Falls, Montana refinery further
strengthens our niche refining portfolio and increases our access to Canadian
heavy crude oil," said Grube.

Net income reported for quarter ended September30, 2012 increased $22.8
million quarter over quarter primarily due to a $61.8 million increase in
gross profit, as discussed below, partially offset bya $6.3 million increase
in realized derivative losses,a $12.2 million increase in selling expenses
($6.3 million of which is noncash amortization expense), an $11.7 million
increase in interest expense and a $4.7 million increase in transportation
expense.

Gross profit by segment for the three and nine months ended September30, 2012
and 2011 are as follows:

                  For the Three Months Ended     For the Nine Months Ended
                  September 30,                  September 30,
                  2012               2011        2012               2011
                  (Dollars in thousands, except  (Dollars in thousands, except
                  per barrel data)               per barrel data)

                                                
Specialty         $   90,575         $  87,789   $   245,662        $ 193,988
products
Fuel products     67,831             8,812       125,796            42
Total gross       $   158,406        $  96,601   $   371,458        $ 194,030
profit (1)
Specialty
products gross    $   24.37          $  31.32    $   23.10          $ 23.52
profit per barrel
Fuel products
gross profit per
barrel (including $   13.11          $  3.01     $   8.15           $ 0.01
hedging
activities)
Fuel products
gross profit per
barrel (excluding $   21.15          $  15.19    $   17.07          $ 10.26
hedging
activities)

(1) We define specialty products and fuel products gross profit as sales less
the cost of crude oil and other feedstocks and other production-related
expenses, the most significant portion of which include labor, plant fuel,
utilities, contract services, maintenance, depreciation and processing
materials.

The increase in specialty products segment gross profit of $2.8 million
quarter over quarter was due primarily to a 32.6% increase in sales volume and
lower operating costs, mainly repairs and maintenance, partially offset by a
7.2% decrease in the average selling price per barrel. Excluding incremental
volumes from the Superior, Missouri, TruSouth and Royal Purple acquisitions,
which reduced the average selling price per barrel due to increased asphalt
sales, the specialty products average sales price per barrel decreased 4.7%
due to weaker demand in the third quarter of 2012 for lubricating oils and our
sales volume decreased 5.0% quarter over quarter.

The increase in fuel products segment gross profit of $59.0 million quarter
over quarter was due primarily to an 76.4% increase in sales volume, mostly as
a result of the Superior acquisition, a 5.9% decrease in the average cost of
crude oil per barrel and a 0.7% increase in the average sales price per barrel
(excluding the impact of realized hedging losses reflected in sales),
partially offset by increased realized losses on derivatives of $7.4 million.
Due to the extremely volatile nature of the pricing differentials between
NYMEX WTI and Canadian heavy and Bakken crude oils during 2012, our NYMEX WTI
crude oil swap contracts entered into to hedge the purchase of crude oil at
our Superior refinery as part of our crack spread hedging program were no
longer closely correlated and we were required, under U.S. GAAP, to
discontinue hedge accounting on these derivatives as of January1, 2012.
Effective April1, 2012, we also voluntarily discontinued hedge accounting for
our fuel products swap contracts entered into to hedge fuel products sales at
our Superior refinery. Primarily as a result of discontinuing hedge accounting
on these derivative instruments, we recorded a loss of $10.2 million to
realized gain (loss) on derivative instruments in the unaudited condensed
consolidated statements of operations for the three months ended September 30,
2012. Total loss on settled derivative instruments reflected in gross profit,
as discussed above, and realized gain (loss) on derivative instruments was
$51.9 million for the third quarter of 2012, an increased loss of $13.8
million quarter over quarter.

The increase in specialty products segment gross profit of $51.7 million for
the nine months ended September 30, 2012 compared to the same period in 2011
was due primarily to a 28.9% increase in sales volume and lower operating
costs, mainly repairs and maintenance, partially offset by a 0.4% decrease in
the average selling price. Excluding incremental volumes from the Superior,
Missouri, TruSouth and Royal Purple acquisitions, which reduced the average
selling price per barrel due to increased asphalt sales, the specialty
products average sales price per barrel increased 3.1% compared to same period
in 2011.

The increase in fuel products segment gross profit of $125.8 million for the
nine months ended September 30, 2012 compared to the same period in 2011 was
due primarily to a 99.5% increase in sales volume, mostly as a result of the
Superior Acquisition, a 0.9% increase in the average sales price per barrel
(excluding the impact of those realized hedging losses reflected in sales) and
a 5.5% decrease in the average cost of crude oil per barrel partially offset
by increased realized losses on derivatives of $57.2 million. Due to the
extremely volatile nature of the pricing differentials between NYMEX WTI and
Canadian heavy and Bakken crude oils during 2012, our NYMEX WTI crude oil swap
contracts entered into to hedge the purchase of crude oil at our Superior
refinery as part of our crack spread hedging program were no longer closely
correlated and we were required, under U.S. GAAP, to discontinue hedge
accounting on these derivatives as of January1, 2012. Effective April1,
2012, we also voluntarily discontinued hedge accounting for our fuel products
swap contracts entered into to hedge fuel products sales at our Superior
refinery. Primarily as a result of discontinuing hedge accounting on these
derivative instruments, we recorded a gain of $20.5 million to realized gain
(loss) on derivative instruments in the unaudited condensed consolidated
statements of operations for the nine months ended September 30, 2012. Total
loss on settled derivative instruments reflected in gross profit, as discussed
above, and realized gain (loss) on derivative instruments was $117.3 million
for the nine months ended September 30, 2012, an increased loss of $30.9
million period over period.

Quarterly Distribution

On October 16, 2012, the Company declared a quarterly cash distribution of
$0.62 per unit on all outstanding units or $38.2 million for the quarter ended
September30, 2012. The distribution will be paid on November 14, 2012 to
unitholders of record as of the close of business on November 2, 2012. This
quarterly distribution represents an increase of 5.1% over the second quarter
of 2012 and a 24.0% increase from the third quarter of 2011.

Operations Summary

The following table sets forth unaudited information about Calumet's
operations. Facility production volume differs from sales volume due to
changes in inventories and the sale of purchased fuel product blendstocks such
as ethanol and biodiesel in our fuel products segment.

                             Three Months Ended September   Nine Months Ended
                             30,                            September 30,
                             2012               2011        2012       2011
Sales volume:                (bpd)                          (bpd)
Specialty products           40,392             30,464      38,807     30,215
Fuel products                56,228             31,873      56,310     28,331
Total (1)                   96,620             62,337      95,117     58,546
Total feedstock runs (2)     95,708             63,567      95,079     60,529
Facility production: (3)
Specialty products:
Lubricating oils             14,966             15,017      14,773     14,316
Solvents                     9,066              10,963      9,445      10,717
Waxes                        1,294              1,434       1,268      1,234
Packaged and synthetic       1,584              —           1,342      —
specialty products (4)
Fuels                        531                491         630        519
Asphalt and other            12,805             8,984       13,729     8,660
by-products
Total                        40,246             36,889      41,187     35,446
Fuel products:
Gasoline                     23,565             9,741       23,018     9,660
Diesel                       21,625             13,470      21,641     11,896
Jet fuel                     4,481              4,872       4,321      4,495
Heavy fuel oils and other    3,406              492         3,373      704
Total                        53,077             28,575      52,353     26,755
Total facility production    93,323             65,464      93,540     62,201
(3)

____________

(1) Total sales volume includes sales from the production at our
facilities and certain third-party facilities pursuant to supply and/or
processing agreements and sales of inventories. Total sales volume includes
the sale of purchased fuel product blendstocks such as ethanol and biodiesel
in our fuel products segment sales. The increase in total sales volume for the
three and nine months ended September30, 2012 compared to the same periods in
2011 is due primarily to incremental sales of fuel products, asphalt and
packaged and synthetic specialty products from the Superior, Missouri,
TruSouth and Royal Purple acquisitions.
(2) Total feedstock runs represent the barrels per day of crude oil and
other feedstocks processed at our facilities and at certain third-party
facilities pursuant to supply and/or processing agreements. The increase in
the total feedstock runs for the three and nine months ended September30,
2012 compared to the same periods in 2011 is due primarily to incremental
feedstock runs from the Superior refinery, partially offset by decreased run
rates at our Shreveport refinery during 2012 due to the April 28, 2012
shutdown of the ExxonMobil pipeline serving this refinery for a portion of its
crude oil requirements.
(3) Total facility production represents the barrels per day of specialty
products and fuel products yielded from processing crude oil and other
feedstocks at our facilities and at certain third-party facilities, pursuant
to supply and/or processing agreements, including such agreements with
LyondellBasell. The difference between total facility production and total
feedstock runs is primarily a result of the time lag between the input of
feedstock and production of finished products and volume loss. The increase in
total facility production for three and nine months ended September30, 2012
compared to the same periods in 2011 is due primarily to the operational items
discussed above in footnote 2 of this table.
(4) Represents packaged and synthetic specialty products at the Royal
Purple, TruSouth and Missouri facilities.

Derivatives Summary

The following table summarizes the derivative activity reflected in our
unaudited condensed consolidated statements of operations and unaudited
condensed statement of cash flows for the three and nine months end
September30, 2012 and 2011.



                 Three Months Ended September  Nine Months Ended September 30,
                 30,
                 2012            2011          2012             2011
                 (In thousands)                (In thousands)
Derivative loss
reflected in     $  (49,572)     $  (61,125)   $  (180,227)     $  (165,801)
sales
Derivative gain
reflected in     7,806           26,775        42,430           85,209
cost of sales
Derivative loss
reflected in     $  (41,766)     $  (34,350)   $  (137,797)     $  (80,592)
gross profit
Realized gain
(loss) on        $  (10,156)     $  (3,814)    $  20,486        $  (5,798)
derivative
instruments
Unrealized loss
on derivative    (22,101)        (20,335)      (11,337)         (23,876)
instruments
Derivative loss
reflected in     —               —             —                (702)
interest expense
Total derivative
loss on
unaudited
condensed        $  (74,023)     $  (58,499)   $  (128,648)     $  (110,968)
consolidated
statements of
operations
Total loss on
derivatives      $  (50,429)     $  (38,939)   $  (116,408)     $  (82,727)
settlements

Revolving Credit Facility Capacity

On September30, 2012, Calumet had availability under its revolving credit
facility of $477.8 million, based on a $658.5 million borrowing base and
$180.7 million in outstanding standby letters of credit. Calumet believes it
will continue to have sufficient cash flow from operations and borrowing
capacity to meet its financial commitments, minimum quarterly distributions to
unitholders, debt service obligations, contingencies and anticipated capital
expenditures.

About the Partnership

Calumet is a master limited partnership and is a leading independent producer
of high-quality, specialty hydrocarbon products in North America. Calumet
processes crude oil and other feedstocks into customized lubricating oils,
solvents, waxes and asphalt used in consumer, industrial and automotive
products. Calumet also produces fuel products including gasoline, diesel and
jet fuel. Calumet is based in Indianapolis, Indiana and has ten facilities
located in northwest Louisiana, northwest Wisconsin, northern Montana, western
Pennsylvania, southeastern Texas and eastern Missouri.

A conference call is scheduled for 1:00 p.m. ET (12:00 p.m. CT) on Wednesday,
October 31, 2012, to discuss the financial and operational results for the
third quarter of 2012. Anyone interested in listening to the presentation may
call 866-543-6408 and enter passcode 22754984. For international callers, the
dial-in number is 617-213-8899 and the passcode is 22754984.

The telephonic replay of the conference call is available in the United States
by calling 888-286-8010 and entering passcode 95789452. International callers
can access the replay by calling 617-801-6888 and entering passcode 95789452.
The replay will be available beginning Wednesday, October 31, 2012, at
approximately 3:00 p.m. ET (2:00 p.m. CT) until Wednesday, November 7, 2012.

The information contained in this press release is available on Calumet's
website at http://www.calumetspecialty.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements and information in this press release concerning results
for the three and nine months ended September30, 2012 may constitute
"forward-looking statements." The words "believe," "expect," "anticipate,"
"plan," "intend," "foresee," "should," "would," "could" or other similar
expressions are intended to identify forward-looking statements, which are
generally not historical in nature. These forward-looking statements are
based on our current expectations and beliefs concerning future developments
and their potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there can be no
assurance that future developments affecting us will be those that we
anticipate. All comments concerning our expectations for future revenues and
operating results are based on our forecasts for our existing operations and
do not include the potential impact of any future acquisitions. Our
forward-looking statements involve significant risks and uncertainties (some
of which are beyond our control) and assumptions that could cause actual
results to differ materially from our historical experience and our present
expectations or projections. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
include: the overall demand for specialty hydrocarbon products, fuels and
other refined products; our ability to produce specialty products and fuels
that meet our customers' unique and precise specifications; the impact of
fluctuations and rapid increases or decreases in crude oil and crack spread
prices, including the resulting impact on our liquidity; the results of our
hedging and other risk management activities; our ability to comply with
financial covenants contained in our debt instruments; the availability of,
and our ability to consummate, acquisition or combination opportunities and
the impact of any completed acquisitions; labor relations; our access to
capital to fund expansions, acquisitions and our working capital needs and our
ability to obtain debt or equity financing on satisfactory terms; successful
integration and future performance of acquired assets, businesses or
third-party product supply and processing relationships; our ability to timely
and effectively integrate the operations of recently acquired businesses or
assets, particularly those in new geographic areas or in new lines of
business; environmental liabilities or events that are not covered by an
indemnity, insurance or existing reserves; maintenance of our credit ratings
and ability to receive open credit lines from our suppliers; demand for
various grades of crude oil and resulting changes in pricing conditions;
fluctuations in refinery capacity; our ability to access sufficient crude oil
supply through long-term or month-to-month evergreen contracts and on the spot
market; the effects of competition; continued creditworthiness of, and
performance by, counterparties; the impact of current and future laws, rulings
and governmental regulations, including guidance related to the Dodd-Frank
Wall Street Reform and Consumer Protection Act; shortages or cost increases of
power supplies, natural gas, materials or labor; hurricane or other weather
interference with business operations; our ability to access the debt and
equity markets; accidents or other unscheduled shutdowns; and general
economic, market or business conditions.

For additional information regarding known material factors that could cause
our actual results to differ from our projected results, please see our
filings with Securities and Exchange Commission ("SEC"), including our 2011
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports
on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date they are made. We undertake no
obligation to publicly update or revise any forward-looking statements after
the date they are made, whether as a result of new information, future events
or otherwise.

Non-GAAP Financial Measures

We include in this press release the non-GAAP financial measures EBITDA,
Adjusted EBITDA and Distributable Cash Flow, and provide reconciliations of
EBITDA, Adjusted EBITDA and Distributable Cash Flow to net income (loss) and
net cash provided by (used in) operating activities, our most directly
comparable financial performance and liquidity measures calculated and
presented in accordance with GAAP.

EBITDA, Adjusted EBITDA and Distributable Cash Flow are used as supplemental
financial measures by our management and by external users of our financial
statements such as investors, commercial banks, research analysts and others,
to assess:

  othe financial performance of our assets without regard to financing
    methods, capital structure or historical cost basis;
  othe ability of our assets to generate cash sufficient to pay interest
    costs and support our indebtedness;
  oour operating performance and return on capital as compared to those of
    other companies in our industry, without regard to financing or capital
    structure; and
  othe viability of acquisitions and capital expenditure projects and the
    overall rates of return on alternative investment opportunities.

We believe that these non-GAAP measures are useful to analysts and investors
as they exclude transactions not related to our core cash operating activities
and provide metrics to analyze our ability to pay distributions. We believe
that excluding these transactions allows investors to meaningfully trend and
analyze the performance of our core cash operations.

We define EBITDA for any period as net income (loss) plus interest expense
(including debt issuance and extinguishment costs), income taxes and
depreciation and amortization.

We define "Adjusted EBITDA" for any period as: (1) net income (loss) plus;
(2)(a) interest expense, (b) income taxes, (c) depreciation and amortization,
(d) unrealized losses from mark to market accounting for hedging activities,
(e) realized gains under derivative instruments excluded from the
determination of net income (loss), (f) non-cash equity based compensation
expense and other non-cash items (excluding items such as accruals of cash
expenses in a future period or amortization of a prepaid cash expense) that
were deducted in computing net income (loss), (g) debt refinancing fees,
premiums and penalties and (h) all extraordinary, unusual or non-recurring
items of gain or loss, or revenue or expense; minus (3)(a) unrealized gains
from mark to market accounting for hedging activities, (b) realized losses
under derivative instruments excluded from the determination of net income and
(c) other non-recurring expenses and unrealized items that reduced net income
(loss) for a prior period, but represent a cash item in the current period.

We define "Distributable Cash Flow" for any period as Adjusted EBITDA less
replacement capital expenditures, turnaround costs, cash interest expense
(consolidated interest expense less non-cash interest expense) and income tax
expense. Distributable Cash Flow is used by us, our investors and analysts to
analyze our ability to pay distributions.

The definitions of Adjusted EBITDA and Distributable Cash Flow that are
presented in this release have been updated to reflect the calculation of
"Consolidated Cash Flow" contained in the indentures governing our 9 3/8%
senior notes due May 1, 2019 that were issued in April and September 2011 (the
"2019 Notes") and the indenture governing our 9 5/8% senior notes due August
1, 2020 that were issued in June 2012 (the "2020 Notes"). We are required to
report Consolidated Cash Flow to our holders of the 2019 Notes and 2020 Notes
and Adjusted EBITDA to the lenders under our revolving credit facility, and
these measures are used by them to determine our compliance with certain
covenants governing those debt instruments. Adjusted EBITDA and Distributable
Cash Flow that are presented in this press release for prior periods have been
updated to reflect the use of the new calculations. Please see our filings
with the SEC, including our 2011 Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K, for additional details regarding
the covenants governing our debt instruments.

EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered
alternatives to net income, operating income, net cash provided by (used in)
operating activities or any other measure of financial performance presented
in accordance with GAAP. In evaluating our performance as measured by EBITDA,
Adjusted EBITDA and Distributable Cash Flow, management recognizes and
considers the limitations of these measurements. EBITDA, Adjusted EBITDA and
Distributable Cash Flow do not reflect our obligations for the payment of
income taxes, interest expense or other obligations such as capital
expenditures. Accordingly, EBITDA, Adjusted EBITDA and Distributable Cash Flow
are only three of the measurements that management utilizes. Moreover, our
EBITDA, Adjusted EBITDA and Distributable Cash Flow may not be comparable to
similarly titled measures of another company because all companies may not
calculate EBITDA, Adjusted EBITDA and Distributable Cash Flow in the same
manner. The following tables present a reconciliation of both net income to
EBITDA, Adjusted EBITDA and Distributable Cash Flow, and Distributable Cash
Flow, Adjusted EBITDA and EBITDA to net cash provided by (used in) operating
activities, our most directly comparable GAAP financial performance and
liquidity measures, for each of the periods indicated.



CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per unit data)


                         For the Three Months Ended  For the Nine Months Ended
                         September 30,               September 30,
                         2012             2011       2012          2011
                         (Unaudited)                 (Unaudited)
Sales                    $  1,179,818     $ 777,780  $  3,436,400  $ 2,116,790
Cost of sales            1,021,412        681,179    3,064,942     1,922,760
Gross profit             158,406          96,601     371,458       194,030
Operating costs and
expenses:
Selling                  15,002           2,809      26,668        8,220
General and              12,810           11,339     41,333        26,923
administrative
Transportation           28,404           23,696     80,903        69,462
Taxes other than income  1,723            1,683      5,371         4,246
taxes
Insurance recoveries     —                —          —             (8,698)
Other                    1,613            543        4,856         1,781
Operating income         98,854           56,531     212,327       92,096
Other income (expense):
Interest expense         (24,271)         (12,577)   (61,247)      (30,602)
Debt extinguishment      —                —          —             (15,130)
costs
Realized gain (loss) on  (10,156)         (3,814)    20,486        (5,798)
derivative instruments
Unrealized loss on       (22,101)         (20,335)   (11,337)      (23,876)
derivative instruments
Other                    268              45         382           148
Total other expense      (56,260)         (36,681)   (51,716)      (75,258)
Net income before income 42,594           19,850     160,611       16,838
taxes
Income tax expense       178              236        610           674
Net income               $  42,416        $ 19,614   $  160,001    $ 16,164
Allocation of net
income:
Net income               $  42,416        $ 19,614   $  160,001    $ 16,164
Less:
General partner's        848              392        3,200         323
interest in net income
General partner's
incentive distribution   1,637            40         3,256         40
rights
Nonvested share based    262              —          947           —
payments
Net income available to  $  39,669        $ 19,182   $  152,598    $ 15,801
limited partners
Weighted average limited
partner units
outstanding:
Basic                    57,746           41,828     54,827        39,352
Diluted                  57,826           41,837     54,867        39,368
Limited partners'
interest basic and       $  0.69          $ 0.46     $  2.78       $ 0.40
diluted net income per
unit
Cash distributions
declared per limited     $  0.59          $ 0.50     $  1.68       $ 1.45
partner unit







CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)


                                         September30, 2012  December31, 2011
                                         (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                $   190,538         $   64
Accounts receivable, net                 264,141             212,065
Inventories                              494,112             497,740
Derivative assets                        —                   58,502
Prepaid expenses and other current       10,315              8,179
assets
Deposits                                 3,949               2,094
Total current assets                     963,055             778,644
Property, plant and equipment, net       863,364             842,101
Goodwill                                 161,150             48,335
Other intangible assets, net             203,752             22,675
Other noncurrent assets, net             47,840              40,303
Total assets                             $   2,239,161       $   1,732,058
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable                         $   336,034         $   302,826
Accrued interest payable                 30,843              10,500
Accrued salaries, wages and benefits     19,507              13,481
Taxes payable                            16,710              13,068
Other current liabilities                9,202               4,600
Current portion of long-term debt        783                 551
Derivative liabilities                   95,802              43,581
Total current liabilities                508,881             388,607
Pension and postretirement benefit       18,315              26,957
obligations
Other long-term liabilities              1,132               1,055
Long-term debt, less current portion     862,513             586,539
Total liabilities                        1,390,841           1,003,158
Commitments and contingencies
Partners' capital:
Partners' capital                        906,998             690,373
Accumulated other comprehensive income   (58,678)            38,527
(loss)
Total partners' capital                  848,320             728,900
Total liabilities and partners' capital  $   2,239,161       $   1,732,058





CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


                                                     For the Nine Months Ended
                                                     September 30,
                                                     2012          2011
Operating activities                                 (Unaudited)
Net income                                           $   160,001   $   16,164
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization                        63,828        43,644
Amortization of turnaround costs                     10,315        8,288
Non-cash interest expense                            4,409         2,363
Non-cash debt extinguishment costs                   —             14,401
Provision for doubtful accounts                      296           255
Unrealized loss on derivative instruments            11,337        23,876
Non-cash equity based compensation                   5,108         3,298
Other non-cash activities                            1,100         (1,468)
Changes in assets and liabilities:
Accounts receivable                                  (32,370)      (44,714)
Inventories                                          33,678        (109,787)
Prepaid expenses and other current assets            (1,628)       (1,926)
Derivative activity                                  904           4,928
Turnaround costs                                     (14,141)      (8,849)
Deposits                                             (1,842)       (426)
Other assets                                         —             (197)
Accounts payable                                     26,845        32,158
Accrued interest payable                             20,343        22,758
Accrued salaries, wages and benefits                 2,327         2,917
Taxes payable                                        3,444         1,676
Other liabilities                                    2,851         (9,082)
Pension and postretirement benefit obligations       (7,365)       (836)
Net cash provided by (used in) operating activities  289,440       (559)
Investing activities
Additions to property, plant and equipment           (36,735)      (30,667)
Proceeds from insurance recoveries — equipment       —             1,942
Cash paid for acquisitions, net of cash acquired     (379,048)     (441,626)
Proceeds from sale of property, plant and equipment  1,960         219
Net cash used in investing activities                (413,823)     (470,132)
Financing activities
Proceeds from borrowings — revolving credit facility 1,147,778     1,152,898
Repayments of borrowings — revolving credit facility (1,147,753)   (1,107,730)
Repayments of borrowings — term loan credit facility —             (367,385)
Payments on capital lease obligations                (1,179)       (802)
Proceeds from public offerings of common units, net  146,558       281,870
Proceeds from senior notes offerings                 270,187       586,000
Debt issuance costs                                  (7,542)       (23,140)
Contributions from Calumet GP, LLC                   3,122         6,011
Units repurchased for phantom unit grants            (2,110)       (620)
Distributions to partners                            (94,204)      (56,382)
Net cash provided by financing activities            314,857       470,720
Net increase in cash and cash equivalents            190,474       29
Cash and cash equivalents at beginning of period     64            37
Cash and cash equivalents at end of period           $   190,538   $   66





CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH
FLOW

(In thousands)


                         For the Three Months Ended  For the Nine Months Ended
                         September 30,               September 30,
                         2012            2011        2012           2011
Reconciliation of Net
Income to EBITDA,
Adjusted EBITDA and
Distributable Cash Flow:
                         (Unaudited)                 (Unaudited)
Net income               $  42,416       $  19,614   $  160,001     $ 16,164
Add:
Interest expense         24,271          12,577      61,247         30,602
Debt extinguishment      —               —           —              15,130
costs
Depreciation and         24,542          14,680      63,828         43,644
amortization
Income tax expense       178             236         610            674
EBITDA                   $  91,407       $  47,107   $  285,686     $ 106,214
Add:
Unrealized loss on       22,101          20,335      11,337         23,876
derivatives
Realized gain (loss) on                  (771)
derivatives,             1,494                       904            4,366
not included in net                      
income
Amortization of          3,154           2,542       10,315         8,288
turnaround costs
Non-cash equity based    3,233           1,335       5,108          3,298
compensation
Adjusted EBITDA          $  121,389      $  70,548   $  313,350     $ 146,042
Less:
Replacement capital      6,063           6,608       15,204         14,204
expenditures(1)
Cash interest expense    22,621          11,869      56,838         28,239
(2)
Turnaround costs         —               1,348       14,141         8,849
Income tax expense       178             236         610            674
Distributable Cash Flow  $  92,527       $  50,487   $  226,557     $ 94,076



(1) Replacement capital expenditures are defined as those capital
expenditures which do not increase operating capacity or reduce operating
costs and exclude turnaround costs.
(2) Represents consolidated interest expense less non-cash interest expense.







CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

RECONCILIATION OF DISTRIBUTABLE CASH FLOW, ADJUSTED EBITDA AND EBITDA TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

(In thousands)


                                               Nine Months Ended September 30,
                                               2012               2011
Reconciliation of Distributable Cash Flow,
Adjusted EBITDA and EBITDA to net cash
provided by (used in) operating activities:
                                               (Unaudited)
Distributable Cash Flow                        $   226,557        $  94,076
Add:
Replacement capital expenditures (1)           15,204             14,204
Cash interest expense (2)                      56,838             28,239
Turnaround costs                               14,141             8,849
Income tax expense                             610                674
Adjusted EBITDA                                $   313,350        $  146,042
Less:
Unrealized loss on derivative instruments      11,337             23,876
Realized gain on derivatives, not included in  904                4,366
net income
Amortization of turnaround costs               10,315             8,288
Non-cash equity based compensation             5,108              3,298
EBITDA                                         $   285,686        $  106,214
Add:
Unrealized loss on derivative instruments      11,337             23,876
Cash interest expense (2)                      (56,838)           (28,239)
Non-cash equity based compensation             5,108              3,298
Amortization of turnaround costs               10,315             8,288
Income tax expense                             (610)              (674)
Provision for doubtful accounts                296                255
Debt extinguishment costs                      —                  (729)
Changes in assets and liabilities:
Accounts receivable                            (32,370)           (44,714)
Inventories                                    33,678             (109,787)
Other current assets                           (3,470)            (2,352)
Turnaround costs                               (14,141)           (8,849)
Derivative activity                            904                4,928
Other assets                                   —                  (197)
Accounts payable                               26,845             32,158
Other liabilities                              28,965             18,269
Other, including changes in noncurrent         (6,265)            (2,304)
liabilities
Net cash provided by (used in) operating       $   289,440        $  (559)
activities

(1) Replacement capital expenditures are defined as those capital
expenditures which do not increase operating capacity or reduce operating
costs and exclude turnaround costs.
(2) Represents consolidated interest expense less non-cash interest expense.





CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

COMMODITY DERIVATIVE INSTRUMENTS

As of September 30, 2012


Fuel Products Segment
The following table provides a summary of Calumet's derivatives and implied
crack spreads for their crude oil, diesel, jet and gasoline swaps, as well
as, Calumet's Canadian heavy crude oil versus NYMEX WTI crude oil basis swaps
as of September 30, 2012.
Crude Oil and Fuel
Products Swap       Barrels               BPD         ImpliedCrack
Contracts by                                          Spread($/Bbl)
Expiration Dates
Fourth Quarter 2012 2,622,000             28,500      $      20.85
Calendar Year 2013  7,605,000             20,836      26.00
Calendar Year 2014  4,195,000             11,493      26.07
Calendar Year 2015  3,467,500             9,500       26.21
Totals         17,889,500
Average price                                    $      25.30
The following table provides a summary of Calumet's Canadian heavy crude oil
versus NYMEX WTI crude oil basis swaps as of September 30, 2012.
Crude Oil Basis                                       Average Differential to
Swap Contracts by   Barrels Purchased     BPD         NYMEX WTI ($/Bbl)
Expiration Dates
Fourth Quarter 2012 184,000               2,000       $      (23.50)
Calendar Year 2013  730,000               2,000       (23.75)
Totals         914,000
Average price                                    $      (23.70)
Specialty Products Segment
The following table provides a summary of Calumet's derivatives for its
natural gas purchases as of September 30, 2012.
Natural Gas Swap
Contracts by                              MMBtu       $/MMBtu
Expiration Dates
Fourth Quarter 2012                       600,000     $      4.08
Totals                               600,000
Average price                                    $      4.08



SOURCE Calumet Specialty Products Partners, L.P.

Website: http://www.calumetspecialty.com
Contact: Jennifer Straumins, +1-317-328-5660,
jennifer.straumins@calumetspecialty.com