10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO             

Commission File Number: 000-51734

Calumet Specialty Products Partners, L.P.

(Exact Name of Registrant as Specified in Its Charter) 

Delaware					35-1811116
(State or Other Jurisdiction of Incorporation or Organization)					(I.R.S. Employer Identification Number)
2780 Waterfront Parkway East Drive			,	Suite 200
Indianapolis	,	IN			46214
(Address of Principal Executive Offices)					(Zip Code)

(317) 328-5660

(Registrant’s Telephone Number, Including Area Code)

None

(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common units representing limited partner interests	CLMT	Nasdaq

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x   No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	☑
Non-accelerated filer	o	Smaller reporting company	☑
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

On November 4, 2021, there were 78,676,262 common units outstanding.

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

QUARTERLY REPORT

For the Three and Nine Months Ended September 30, 2021

Table of Contents

	Page
Part I
Item 1. Financial Statements
Condensed Consolidated Balance Sheets	4
Unaudited Condensed Consolidated Statements of Operations	5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss)	6
Unaudited Condensed Consolidated Statements of Partners’ Capital (Deficit)	7
Unaudited Condensed Consolidated Statements of Cash Flows	8
Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3. Quantitative and Qualitative Disclosures About Market Risk	51
Item 4. Controls and Procedures	52
Part II
Item 1. Legal Proceedings	53
Item 1A. Risk Factors	53
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3. Defaults Upon Senior Securities	53
Item 4. Mine Safety Disclosures	53
Item 5. Other Information	53
Item 6. Exhibits	54

2

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) includes certain “forward-looking statements.” These statements can be identified by the use of forward-looking terminology including “may,” “intend,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “plan,” “should,” “could,” “would,” or other similar words. The statements regarding (i) the effect, impact, potential duration or other implications of the ongoing novel coronavirus (“COVID-19”) pandemic, supply chain disruptions and global crude oil production levels on our business and operations; (ii) demand for refined petroleum products in markets we serve; (iii) estimated capital expenditures as a result of required audits or required operational changes or other environmental and regulatory liabilities; (iv) our anticipated levels of, use and effectiveness of derivatives to mitigate our exposure to crude oil price changes, natural gas price changes and fuel products price changes; (v) estimated costs of complying with the U.S. Environmental Protection Agency’s (“EPA”) Renewable Fuel Standard (“RFS”), including the prices paid for Renewable Identification Numbers (“RINs”) and the amount of RINs we may be required to purchase in any given compliance year; (vi) our ability to meet our financial commitments, debt service obligations, debt instrument covenants, contingencies and anticipated capital expenditures; (vii) our access to capital to fund capital expenditures and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; (viii) our access to inventory financing under our supply and offtake agreements; (ix) our ability to remediate the identified material weakness and further strengthen the overall controls surrounding information systems; and (x) the future effectiveness of our enterprise resource planning (“ERP”) system to further enhance operating efficiencies and provide more effective management of our business operations, as well as other matters discussed in this Quarterly Report that are not purely historical data, are forward-looking statements. These forward-looking statements are based on our expectations and beliefs as of the date hereof 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 current expectations for future sales and operating results are based on our forecasts for our existing operations and do not include the potential impact of any future acquisition or disposition transactions. 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. Factors that could cause our actual results to differ from those in the forward-looking statements include those described in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (“2020 Annual Report”). Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. 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.

References in this Quarterly Report to “Calumet Specialty Products Partners, L.P.,” “Calumet,” “the Company,” “we,” “our,” “us” or like terms refer to Calumet Specialty Products Partners, L.P. and its subsidiaries. References in this Quarterly Report to “our general partner” refer to Calumet GP, LLC, the general partner of Calumet Specialty Products Partners, L.P.

3

PART I

Item 1. Financial Statements

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2021		December 31, 2020
	(Unaudited)
	(In millions, except unit data)
ASSETS
Current assets:
Cash and cash equivalents	$	10.8	$	109.4
Accounts receivable
Trade, less allowance for credit losses of $1.2 million and $0.8 million, respectively	218.4		152.4
Other	16.6		8.0
	235.0		160.4
Inventories	297.3		254.9
Prepaid expenses and other current assets	22.4		10.2
Total current assets	565.5		534.9
Property, plant and equipment, net	903.7		919.8
Other noncurrent assets, net	364.7		353.6
Total assets	$	1,833.9	$	1,808.3
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	241.4	$	179.3
Accrued interest payable	45.8		31.7
Accrued salaries, wages and benefits	64.8		27.6
Obligations under inventory financing agreements	152.4		98.8
Current portion of RINs obligation	184.5		129.4
Other current liabilities	62.0		74.8
Current portion of long-term debt	88.0		2.9
Total current liabilities	838.9		544.5
Other long-term liabilities	67.9		73.0
Long-term RINs obligation, less current portion	55.9		—
Long-term debt, less current portion	1,171.4		1,319.4
Total liabilities	$	2,134.1	$	1,936.9
Commitments and contingencies
Partners’ capital (deficit):
Limited partners’ interest 78,676,262 units and 78,062,346 units issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	$	(293.5)	$	(125.3)
General partner’s interest	5.5		9.0
Accumulated other comprehensive loss	(12.2)		(12.3)
Total partners’ capital (deficit)	(300.2)		(128.6)
Total liabilities and partners’ capital (deficit)	$	1,833.9	$	1,808.3

See accompanying notes to unaudited condensed consolidated financial statements.

4

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(In millions, except per unit and unit data)
			(as adjusted)				(as adjusted)
Sales	$	874.9	$	568.0	$	2,282.2	$	1,714.3
Cost of sales	741.6		551.5		2,171.8		1,609.8
Gross profit	133.3		16.5		110.4		104.5
Operating costs and expenses:
Selling	12.4		11.2		40.0		37.1
General and administrative	30.9		29.7		97.3		76.7
Other operating (income) expense	(3.3)		6.4		20.0		22.6
Operating income (loss)	93.3		(30.8)		(46.9)		(31.9)
Other income (expense):
Interest expense	(38.2)		(33.3)		(109.3)		(93.2)
Gain (loss) on derivative instruments	(3.3)		7.9		(15.4)		57.7
Other	0.1		0.2		0.1		1.3
Total other expense	(41.4)		(25.2)		(124.6)		(34.2)
Net income (loss) before income taxes	51.9		(56.0)		(171.5)		(66.1)
Income tax expense	0.4		0.1		1.5		0.8
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Allocation of net income (loss)
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Less:
General partner’s interest in net income (loss)	1.0		(1.1)		(3.5)		(1.3)
Net income (loss) attributable to limited partners	$	50.5	$	(55.0)	$	(169.5)	$	(65.6)
Weighted average limited partner units outstanding:
Basic	78,924,380		78,743,083		78,831,988		78,602,651
Diluted	78,971,518		78,743,083		78,831,988		78,602,651
Limited partners’ interest basic net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)
Limited partners’ interest diluted net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)

See accompanying notes to unaudited condensed consolidated financial statements.

5

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(In millions)
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Other comprehensive income (loss):
Cash flow hedges:
Cash flow hedge loss	—		—		—		(0.2)
Defined benefit pension and retiree health benefit plans	(0.1)		0.2		0.1		0.2
Total other comprehensive income (loss)	(0.1)		0.2		0.1		—
Comprehensive income (loss) attributable to partners’ capital (deficit)	$	51.4	$	(55.9)	$	(172.9)	$	(66.9)

See accompanying notes to unaudited condensed consolidated financial statements.

6

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL (DEFICIT)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at June 30, 2021	$	(12.1)	$	4.5	$	(344.1)	$	(351.7)
Other comprehensive loss	(0.1)		—		—		(0.1)
Net income	—		1.0		50.5		51.5
Amortization of phantom units	—		—		0.1		0.1
Balance at September 30, 2021	$	(12.2)	$	5.5	$	(293.5)	$	(300.2)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at December 31, 2020	$	(12.3)	$	9.0	$	(125.3)	$	(128.6)
Other comprehensive income	0.1		—		—		0.1
Net loss	—		(3.5)		(169.5)		(173.0)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(0.6)		(0.6)
Amortization of phantom units	—		—		1.9		1.9
Balance at September 30, 2021	$	(12.2)	$	5.5	$	(293.5)	$	(300.2)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at June 30, 2020	$	(10.8)	$	11.8	$	9.9	$	10.9
Other comprehensive income	0.2		—		—		0.2
Net loss	—		(1.1)		(55.0)		(56.1)
Amortization of phantom units	—		—		0.2		0.2
Balance at September 30, 2020	$	(10.6)	$	10.7	$	(44.9)	$	(44.8)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at December 31, 2019	$	(10.6)	$	12.0	$	20.2	$	21.6
Net loss	—		(1.3)		(65.6)		(66.9)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(0.5)		(0.5)
Amortization of phantom units	—		—		1.0		1.0
Balance at September 30, 2020	$	(10.6)	$	10.7	$	(44.9)	$	(44.8)

See accompanying notes to unaudited condensed consolidated financial statements.

7

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2021		2020
	(In millions)
Operating activities
Net loss	$	(173.0)	$	(66.9)
Non-cash activities	94.5		120.2
Changes in assets and liabilities	48.6		11.6
Net cash provided by (used in) operating activities	(29.9)		64.9
Investing activities
Additions to property, plant and equipment	(34.3)		(34.8)
Other investing activities	0.1		(2.4)
Net cash used in investing activities	(34.2)		(37.2)
Financing activities
Proceeds from borrowings — revolving credit facility	868.1		895.9
Repayments of borrowings — revolving credit facility	(928.0)		(795.8)
Repayments of borrowings — senior notes	(70.0)		—
Proceeds from inventory financing	724.1		584.8
Payments on inventory financing	(689.4)		(620.1)
Proceeds from other financing obligations	70.0		31.4
Other financing activities	(9.3)		(33.6)
Net cash provided by (used in) financing activities	(34.5)		62.6
Net increase (decrease) in cash and cash equivalents	(98.6)		90.3
Cash and cash equivalents at beginning of period	109.4		19.1
Cash and cash equivalents at end of period	$	10.8	$	109.4
Supplemental disclosure of non-cash investing activities
Non-cash property, plant and equipment additions	$	25.7	$	4.1

See accompanying notes to unaudited condensed consolidated financial statements.

8

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Description of the Business

Calumet Specialty Products Partners, L.P. (the “Company”) is a publicly traded Delaware limited partnership. Its common units are listed on the Nasdaq Global Select Market under the ticker symbol “CLMT.” The general partner of the Company is Calumet GP, LLC, a Delaware limited liability company. As of September 30, 2021, the Company had 78,676,262 limited partner common units and 1,605,636 general partner equivalent units outstanding. The general partner owns 2% of the Company and all of the incentive distribution rights (as defined in the Company’s partnership agreement), while the remaining 98% is owned by limited partners. The general partner employs the Company’s employees and the Company reimburses the general partner for certain of its expenses.

The Company manufactures, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K.

2. Change in Accounting Policy

During the first quarter of fiscal 2021, the Company changed its method of accounting for shipping and handling costs, which are primarily costs paid to third-party shippers for transporting products to customers. Under the new method of accounting, the Company includes shipping costs in cost of sales, whereas previously, they were included in operating costs and expenses as a separate line item as transportation expense.

The Company believes that including these expenses in cost of sales is preferable, as it better aligns these costs with the related revenue in the gross profit calculation and is consistent with the practices of other industry peers. This change in accounting principle has been applied retrospectively, and the unaudited condensed consolidated statements of operations reflect the effect of this accounting principle change for all periods presented. This reclassification had no impact on net income (loss) before income taxes, net income (loss) attributable to limited partners, limited partners’ interest basic net income (loss) per unit, or limited partners’ interest diluted net income (loss) per unit. The condensed consolidated balance sheets, unaudited condensed consolidated statements of comprehensive income (loss), unaudited condensed consolidated statements of partners’ capital (deficit), and unaudited condensed consolidated statements of cash flows were not impacted by this accounting principle change.

The unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020 have been adjusted to reflect this change in accounting policy. The impact of the adjustment for the three and nine months ended September 30, 2020 was an increase of $28.1 million and $83.7 million, respectively, to cost of sales and a corresponding decrease to transportation expense in the unaudited condensed consolidated statements of operations.

3. Summary of Significant Accounting Policies

Reclassifications

Certain amounts in the prior years’ unaudited condensed consolidated financial statements have been reclassified to conform to the current year presentation.

9

Renewable Identification Numbers (“RINs”) Obligation

The Company’s RINs obligation (“RINs Obligation”) is an estimated provision for the future purchase of RINs in order to satisfy the U.S. Environmental Protection Agency’s (“EPA”) requirement to blend renewable fuels into certain transportation fuel products pursuant to the Renewable Fuel Standard (“RFS”). A RIN is a 38-character number assigned to each physical gallon of renewable fuel produced in or imported into the United States. The EPA sets annual quotas for the percentage of renewable fuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is subject to those quotas. Compliance is demonstrated by tendering RINs to the EPA documenting that blending has been accomplished. To the extent the Company is unable to physically blend renewable fuels to satisfy the EPA requirement, it may purchase RINs in the open market to satisfy the annual quota.

The Company accounts for its current period RINs obligation by multiplying the quantity of RINs shortage (based on actual results) by the period end RINs spot price, which is recorded as a current and long-term RINs obligation liability in the condensed consolidated balance sheets. This current period liability is revalued at the end of each subsequent accounting period, which produces non-cash mark-to-market adjustments that are reflected in cost of sales in the unaudited condensed consolidated statements of operations (with the exception of RINs for compliance year 2019 related to the San Antonio refinery, which amount is reflected in other operating expense in the unaudited condensed consolidated statements of operations). RINs generated by blending in excess of the EPA percentages may be sold or held to offset future RINs Obligations. Any gains or losses from RINs sales are recorded in cost of sales in the unaudited condensed consolidated statements of operations. The liabilities associated with the Company’s RINs obligation are considered recurring fair value measurements. Please read Note 7 - “Commitments and Contingencies” for further information on the Company’s RINs obligation.

4. Revenue Recognition

The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Products

The Company manufactures, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. The Company also produces fuel and fuel related products, including gasoline, diesel, jet fuel, asphalt, and other fuels products. The Company also blends, packages and markets high-performance branded specialty products through its Royal Purple, Bel-Ray, and TruFuel brands.

The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer, or, in certain cases, upon receipt by the customer in accordance with contractual terms.

Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. For fuel products, payment is typically due in full between 2 to 30 days of delivery or the start of the contract term, such that payment is typically collected 2 to 30 days subsequent to the satisfaction of performance obligations. For specialty products, payment is typically due in full between 30 to 90 days of delivery or the start of the contract term, such that payment is typically collected 30 to 90 days subsequent to the satisfaction of performance obligations. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The expected costs associated with a product assurance warranty continues to be recognized as expense when products are sold. The Company does not offer promised services that could be considered warranties that are sold separately or provide a service in addition to assurance that the related product complies with agreed upon specifications. The Company establishes provisions based on the methods described in ASC 606 for estimated returns and warranties as variable consideration when determining the transaction price.

10

Excise and Sales Taxes

The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities.

Shipping and Handling Costs

Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation.

Cost of Obtaining Contracts

The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less.

Contract Balances

Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606. The Company’s receivables, net of allowance for expected credit losses from contracts with customers as of September 30, 2021 and December 31, 2020 were $218.4 million and $152.4 million, respectively.

Transaction Price Allocated to Remaining Performance Obligations

The Company’s product sales are short-term in nature with a contract term of one year or less. The Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Additionally, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

5. Inventories

The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. In certain circumstances, the Company may decide not to replenish inventory for certain products or product lines during an interim period, in which case, the Company may record interim LIFO adjustments during that period. During the three and nine months ended September 30, 2021 and 2020, the Company recorded no activity (exclusive of lower of cost or market (“LCM”) adjustments) in cost of sales in the unaudited condensed consolidated statements of operations due to the permanent liquidation of inventory layers.

Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the LCM value. The replacement cost of these inventories, based on current market values, would have been $49.1 million higher and $6.7 million lower as of September 30, 2021 and December 31, 2020, respectively.

On March 31, 2017 and June 19, 2017, the Company sold inventory comprised of crude oil and refined products to Macquarie Energy North America Trading Inc. (“Macquarie”) under Supply and Offtake Agreements as described in Note 8 - “Inventory Financing Agreements” related to the Great Falls and Shreveport refineries, respectively.

11

Inventories consist of the following (in millions):

	September 30, 2021						December 31, 2020
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	48.5	$	23.0	$	71.5	$	30.8	$	11.5	$	42.3
Work in process	33.9		29.6		63.5		31.8		27.4		59.2
Finished goods	117.5		44.8		162.3		114.0		39.4		153.4
	$	199.9	$	97.4	$	297.3	$	176.6	$	78.3	$	254.9

(1)Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 8 - “Inventory Financing Agreements” for further information.

In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. During the three months ended September 30, 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $4.7 million due to the sale of inventory previously adjusted through the LCM valuation. During the three months ended September 30, 2020, the Company recorded an increase of $1.1 million in cost of sales in the unaudited condensed consolidated statements of operations as a result of declining market prices. During the nine months ended September 30, 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $45.1 million due to the sale of inventory previously adjusted through the LCM valuation. During the nine months ended September 30, 2020, the Company recorded an increase in cost of sales in the unaudited condensed consolidated statements of operations of $35.3 million as a result of declining market prices.

6. Leases

The Company has various operating and finance leases primarily for the use of land, storage tanks, railcars, equipment, precious metals and office facilities that have remaining lease terms of greater than one year to 18 years, some of which include options to extend the lease for up to 34 years, and others of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases as of September 30, 2021 and December 31, 2020, were as follows (in millions):

		September 30, 2021		December 31, 2020
Assets:	Classification:
Operating lease assets	Other noncurrent assets, net (1)	$	64.7	$	85.8
Finance lease assets	Property, plant and equipment, net (2)	4.4		4.0
Total leased assets		$	69.1	$	89.8
Liabilities:
Current
Operating	Other current liabilities (1)	$	22.8	$	41.4
Finance	Current portion of long-term debt	0.8		0.6
Non-current
Operating	Other long-term liabilities (1)	42.4		44.8
Finance	Long-term debt, less current portion	3.3		3.1
Total lease liabilities		$	69.3	$	89.9

(1)In the third quarter of 2021, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $4.4 million.

(2)Finance lease assets are recorded net of accumulated amortization of $3.9 million and $3.4 million as of September 30, 2021 and December 31, 2020, respectively.

12

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three and nine months ended September 30, 2021 and 2020 were as follows (in millions).

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Costs:	Classification:	2021		2020		2021		2020
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	11.9	$	10.3	$	35.5	$	36.4
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.9		1.7		5.9		6.9
Variable operating lease cost (2)	Cost of Sales; SG&A Expenses	7.1		0.4		13.5		1.7
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.2		0.1		0.5		0.4
Interest on lease liabilities	Interest expense	0.1		0.1		0.3		0.3
Total lease cost		$	21.2	$	12.6	$	55.7	$	45.7

(1)The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

(2)The Company’s railcar leases typically include a mileage limit the railcar can travel over the life of the lease. For any mileage incurred over this limit, the Company is obligated to pay an agreed upon dollar value for each mile that is traveled over the limit.

As of September 30, 2021, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions):

Maturity of Lease Liabilities	Operating Leases (1)		Finance Leases      (2)		Total
2021	$	11.8	$	0.3	$	12.1
2022	18.6		1.0		19.6
2023	14.8		1.0		15.8
2024	10.5		1.0		11.5
2025	7.4		0.7		8.1
Thereafter	13.0		0.9		13.9
Total	$	76.1	$	4.9	$	81.0
Less: Interest	10.9		0.8		11.7
Present value of lease liabilities	$	65.2	$	4.1	$	69.3
Less obligations due within one year	22.8		0.8		23.6
Long-term lease obligation	$	42.4	$	3.3	$	45.7

(1)As of September 30, 2021, the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2021.

(2)As of September 30, 2021, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2021.

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Weighted-Average Lease Term and Discount Rate

The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases were as follows:

	September 30, 2021		December 31, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	4.6		3.8
Finance leases	5.0		5.4
Weighted-average discount rate:
Operating leases	6.8	%	7.3	%
Finance leases	7.3	%	8.3	%

7. Commitments and Contingencies

From time to time, the Company is a party to certain claims and litigation incidental to its business, including claims made by various taxation and regulatory authorities, such as the Internal Revenue Service, the EPA and the U.S. Occupational Safety and Health Administration (“OSHA”), as well as various state environmental regulatory bodies and state and local departments of revenue, as the result of audits or reviews of the Company’s business. In addition, the Company has property, business interruption, general liability and various other insurance policies that may result in certain losses or expenditures being reimbursed to the Company.

Environmental

The Company conducts crude oil and specialty hydrocarbon refining, blending and terminal operations and such activities are subject to stringent federal, regional, state and local laws and regulations governing worker health and safety, the discharge of materials into the environment and environmental protection. These laws and regulations impose obligations that are applicable to the Company’s operations, such as requiring the acquisition of permits to conduct regulated activities, restricting the manner in which the Company may release materials into the environment, requiring remedial activities or capital expenditures to mitigate pollution from former or current operations, requiring the application of specific health and safety criteria addressing worker protection and imposing substantial liabilities for pollution resulting from its operations. Failure to comply with these laws and regulations may result in the assessment of sanctions, including administrative, civil and criminal penalties; the imposition of investigatory, remedial or corrective action obligations or the incurrence of capital expenditures; the occurrence of delays in the permitting, development or expansion of projects and the issuance of injunctive relief limiting or prohibiting Company activities. Moreover, certain of these laws impose joint and several, strict liability for costs required to remediate and restore sites where petroleum hydrocarbons, wastes or other materials have been released or disposed. In addition, new laws and regulations, new interpretations of existing laws and regulations, increased governmental enforcement or other developments, some of which legal requirements are discussed below, could significantly increase the Company’s operational or compliance expenditures.

Remediation of subsurface contamination is in process at certain of the Company’s refinery sites and is being overseen by the appropriate state agencies. Based on current investigative and remedial activities, the Company believes that the soil and groundwater contamination at these refineries can be controlled or remediated without having a material adverse effect on the Company’s financial condition. However, such costs are often unpredictable and, therefore, there can be no assurance that the future costs will not become material.

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Renewable Identification Numbers Obligation

The RFS allows small refineries to apply at any time for a Small Refinery Exemption (“SRE”) from the renewable blending requirements, and Calumet had applied in respect of calendar 2019 and 2020 compliance years. The EPA has not acted on 2019 and 2020 SRE applications. On January 19, 2021, the Company filed a lawsuit against Mr. Andrew Wheeler, Administrator of the EPA, in federal court in the Western District of Louisiana and in the District of Montana seeking an order that the EPA cannot enforce the RINs compliance deadline until the EPA has taken action on the Company’s hardship exemption applications. Subsequent to the Company filing those lawsuits, EPA extended the deadlines for 2019 RFS compliance to November 30, 2021 and for 2020 RFS compliance to January 31, 2022, whereupon, on April 22, 2021, the Company and EPA agreed to place the two lawsuits in abeyance until November 1, 2021. The Company is now actively pursuing those lawsuits.

The Company continues to anticipate that RFS compliance may continue to result in a significant expense for the Specialty Products and Solutions and Montana/Renewables segments. If legal or regulatory changes occur that have the effect of increasing the RINs Obligation, increasing the market price of RINs, or eliminating or narrowing the availability of SRE, the Company could be required to purchase additional RINs in the open market, which may materially increase the costs related to RFS compliance and could have a material adverse effect on the results of operations and liquidity.

As of September 30, 2021 and December 31, 2020, the Company had a RINs Obligation recorded on the condensed consolidated balance sheets of $240.4 million and $129.4 million, respectively. Please read Note 3 - “Summary of Significant Accounting Policies” for additional information.

Occupational Health and Safety

The Company is subject to various laws and regulations relating to occupational health and safety, including the federal Occupational Safety and Health Act, as amended, and comparable state laws. These laws and regulations strictly govern the protection of the health and safety of employees. In addition, OSHA’s hazard communication standard, the EPA’s community right-to-know regulations under Title III of the federal Comprehensive Environmental Response, Compensation and Liability Act, as amended, and similar state statutes require the Company to maintain information about hazardous materials used or produced in the Company’s operations and provide this information to employees, contractors, state and local government authorities and customers. The Company maintains safety and training programs as part of its ongoing efforts to promote compliance with applicable laws and regulations. The Company conducts periodic audits of process safety management systems at each of its locations subject to this standard. The Company’s compliance with applicable health and safety laws and regulations has required, and continues to require, substantial expenditures. Changes in occupational safety and health laws and regulations or a finding of non-compliance with current laws and regulations could result in additional capital expenditures or operating expenses, as well as civil penalties and, in the event of a serious injury or fatality, criminal charges.

Other Matters, Claims and Legal Proceedings

The Company is subject to matters, claims and litigation incidental to its business. The Company has recorded accruals with respect to certain of its matters, claims and litigation where appropriate, that are reflected in the unaudited condensed consolidated financial statements but are not individually considered material. For other matters, claims and litigation, the Company has not recorded accruals because it has not yet determined that a loss is probable or because the amount of loss cannot be reasonably estimated. While the ultimate outcome of matters, claims and litigation currently pending cannot be determined, the Company currently does not expect these outcomes, individually or in the aggregate (including matters for which the Company has recorded accruals), to have a material adverse effect on its financial position, results of operations or cash flows. The outcome of any matter, claim or litigation is inherently uncertain, however, and if decided adversely to the Company, or if the Company determines that settlement of particular litigation is appropriate, the Company may be subject to liability that could have a material adverse effect on its financial position, results of operations or cash flows.

Standby Letters of Credit

The Company has agreements with various financial institutions for standby letters of credit, which have been issued primarily to vendors. As of September 30, 2021 and December 31, 2020, the Company had outstanding standby letters of credit of $27.9 million and $23.7 million, respectively, under its senior secured revolving credit facility (the “revolving credit facility”). Please read Note 9 - “Long-Term Debt” for additional information regarding the Company’s revolving credit facility. At September 30, 2021 and December 31, 2020, the maximum amount of letters of credit the Company could issue under its revolving credit facility was subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $300.0 million, which may be increased with the consent of the Agent (as defined in the Credit Agreement) to 90% of revolver commitments then in effect ($600.0 million at September 30, 2021 and December 31, 2020).

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Throughput Contract

Prior to 2020, the Company entered into a long-term agreement to transport crude oil at a minimum of 5,000 bpd through a pipeline, which commenced service in the second quarter of 2020. The agreement also contains a capital recovery charge that increases 2% per annum. This agreement is for seven years.

As of September 30, 2021, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2021	$	1.0
2022	3.9
2023	3.9
2024	4.0
2025	4.0
Thereafter	6.0
Total (1)	$	22.8

(1)As of September 30, 2021, the estimated minimum payments for the unconditional purchase commitments have been accrued and are included in other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. This liability was accrued due to the fact that the contract was entered into to supply crude to a divested facility.

8. Inventory Financing Agreements

The Company entered into several agreements with Macquarie to support the operations of the Great Falls refinery and the Shreveport refinery (as amended, the “Supply and Offtake Agreements”), which each have an expiration date of June 30, 2023.

The Supply and Offtake Agreements allow the Company to purchase crude oil from Macquarie or one of its affiliates. Per the Supply and Offtake Agreements, Macquarie will provide up to 30,000 barrels per day of crude oil to the Great Falls refinery and 60,000 barrels per day of crude oil to the Shreveport refinery.

While title to certain inventories will reside with Macquarie, the Supply and Offtake Agreements are accounted for by the Company similar to a product financing arrangement; therefore, the inventories sold to Macquarie will continue to be included in the Company’s condensed consolidated balance sheets until processed and sold to a third party.

For the three months ended September 30, 2021 and 2020, the Company incurred an expense of $5.5 million and $1.2 million, respectively, for financing costs related to the Supply and Offtake Agreements, which are included in interest expense in the Company’s unaudited condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, the Company incurred an expense of $10.3 million and received a $2.0 million benefit, respectively, for financing costs related to the Supply and Offtake Agreements, which are included in interest expense in the Company’s unaudited condensed consolidated statements of operations.

The Company has provided cash collateral of $14.6 million related to the initial purchase of the Great Falls and Shreveport inventory to cover credit risk for future crude oil deliveries and potential liquidation risk if Macquarie exercises its rights and sells the inventory to third parties. The collateral was recorded as a reduction to the obligations.

The Supply and Offtake Agreements also include a deferred payment arrangement (“Deferred Payment Arrangement”) whereby the Company can defer payments on just-in-time crude oil purchases from Macquarie owed under the agreements up to the value of the collateral provided (up to 90% of the collateral inventory). The deferred amounts under the Deferred Payment Arrangement bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 3.25% per annum for both Shreveport and Great Falls. Amounts outstanding under the Deferred Payment Arrangement are included in obligations under inventory financing agreements in the Company’s condensed consolidated balance sheets. Changes in the amount outstanding under the Deferred Payment Arrangement are included within cash flows from financing activities in the Company’s unaudited condensed consolidated statements of cash flows. As of September 30, 2021 and December 31, 2020, the Company had $26.4 million and $15.0 million of deferred payments outstanding, respectively. In addition to the Deferred Payment Arrangement, Macquarie has advanced the Company an additional $5.0 million which remained outstanding as of September 30, 2021.

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9. Long-Term Debt

Long-term debt consisted of the following (in millions):

	September 30, 2021		December 31, 2020
Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rates of 2.4% for the nine months ended September 30, 2021 and the year ended December 31, 2020.	$	48.1	$	108.0
Borrowings under the 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.3% and 8.1% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively. (1)	80.1		150.6
Borrowings under the 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.3% and 8.1% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.	325.0		325.0
Borrowings under the 2024 Secured Notes, interest at a fixed rate of 9.25%, interest payments semiannually, borrowings due July 2024, effective interest rate of 9.4% for the nine months ended September 30, 2021 and the year ended December 31, 2020.	200.0		200.0
Borrowings under the 2025 Notes, interest at a fixed rate of 11.0%, interest payments semiannually, borrowings due April 2025, effective interest rate of 11.4% and 11.3% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.	550.0		550.0
Shreveport terminal asset financing arrangement	66.4		—
Other	1.1		2.3
Finance lease obligations, at various interest rates, interest and principal payments monthly through June 2028	4.1		3.7
Less unamortized debt issuance costs (2)	(11.4)		(14.2)
Less unamortized discounts	(4.0)		(3.1)
Total debt	$	1,259.4	$	1,322.3
Less current portion of long-term debt	88.0		2.9
Total long-term debt	$	1,171.4	$	1,319.4

(1)The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.1 million and $0.6 million as of September 30, 2021 and December 31, 2020, respectively.

(2)Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $22.7 million and $20.5 million at September 30, 2021 and December 31, 2020, respectively.

7.625% Senior Notes due 2022 (the “2022 Notes”)

During the nine months ended September 30, 2021, the Company repurchased $70.0 million aggregate principal amount of its 2022 Notes at a redemption price of par, plus accrued and unpaid interest to the redemption date of June 5, 2021. In conjunction with the repurchase during the nine months ended September 30, 2021, the Company recorded a loss from debt extinguishment of $0.4 million.

Senior Notes

The indentures governing the 2022 Notes, the 7.75% Senior Notes due 2023 (“2023 Notes”), the 9.25% Senior Secured First Lien Notes due 2024 (“2024 Secured Notes”) and the 11.00% Senior Notes due 2025 (“2025 Notes”) and, together with the 2022 Notes, 2023 Notes and 2024 Secured Notes, the “Senior Notes” contain covenants that, among other things, restrict the Company’s ability and the ability of certain of the Company’s subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase the Company’s common units or redeem or repurchase its subordinated debt; (iii) make investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from the Company’s restricted subsidiaries to the Company; (vii) consolidate, merge or transfer all or substantially all of the Company’s assets; (viii) engage in transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications. At any time when the Senior Notes are rated investment grade by either Moody’s Investors Service, Inc. (“Moody’s”) or S&P Global Ratings (“S&P”) and no Default or Event of Default, each as defined in the indentures governing the Senior Notes, has occurred and is continuing, many of these covenants will be suspended. As of September 30, 2021, the Company was in compliance with all covenants under the indentures governing the Senior Notes.

17

Third Amended and Restated Senior Secured Revolving Credit Facility

On February 23, 2018, the Company entered into the Third Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) governing its senior secured revolving credit facility maturing in February 2023, which provides maximum availability of credit under the revolving credit facility of $600.0 million, subject to borrowing base limitations, and includes a $500.0 million incremental uncommitted expansion feature. Lenders under the revolving credit facility have a first priority lien on, among other things, the Company’s accounts receivable and inventory and substantially all of its cash (collectively, the “Credit Agreement Collateral”). In September 2019, the borrowing base was expanded by $99.6 million by adding the fixed assets of the Company’s Great Falls, MT refinery as collateral under the Credit Agreement. The $99.6 million expansion amortizes to zero on a straight-line basis over ten quarters starting in the first quarter of 2020.

The borrowing capacity at September 30, 2021, under the revolving credit facility was approximately $345.9 million. As of September 30, 2021, the Company had $48.1 million of outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $27.9 million, leaving approximately $269.9 million of unused capacity.

The revolving credit facility contains various covenants that limit, among other things, the Company’s ability to: incur indebtedness; grant liens; dispose of certain assets; make certain acquisitions and investments; redeem or prepay other debt or make other restricted payments such as distributions to unitholders; enter into transactions with affiliates; and enter into a merger, consolidation or sale of assets. Further, the revolving credit facility contains one springing financial covenant which provides that only if the Company’s availability to borrow loans under the revolving credit facility falls below the greater of (i) 10% of the Borrowing Base (as defined in the Credit Agreement) then in effect, or 15% while the Great Falls, MT refinery is included in the Borrowing Base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.0 to 1.0. As of September 30, 2021, the Company was in compliance with all covenants under the revolving credit facility.

Maturities of Long-Term Debt

As of September 30, 2021, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2021	$	2.8
2022	87.5
2023	381.3
2024	208.9
2025	559.3
Thereafter	34.9
Total	$	1,274.7

10. Derivatives

The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products, natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce the Company’s exposure with respect to:

•crude oil purchases and sales;

•fuel product sales and purchases;

•natural gas purchases;

•precious metals purchases; and

•fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet, Western Canadian Select (“WCS”), WTI Midland, Mixed Sweet Blend, Magellan East Houston and ICE Brent.

18

The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives.

Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or its risk profiles. Such changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise.

The Company is obligated to repurchase crude oil and refined products from Macquarie at the termination of the Supply and Offtake Agreements in certain scenarios. The Company has determined that the redemption feature on the initially recognized liability related to the Supply and Offtake Agreements is an embedded derivative indexed to commodity prices. As such, the Company has accounted for these embedded derivatives at fair value with changes in the fair value, if any, recorded in Gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations.

The Company recognizes all derivative instruments at their fair values (please read Note 11 - “Fair Value Measurements”) as either current assets or current liabilities in the condensed consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes in accordance with the provisions of our master netting arrangements.

The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets (in millions):

		September 30, 2021						December 31, 2020
	Balance Sheet Location	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
Montana/Renewables segment:
WCS crude oil basis swaps	Other current assets	$	—	$	—	$	—	$	0.4	$	(0.4)	$	—
Total derivative instruments		$	—	$	—	$	—	$	0.4	$	(0.4)	$	—

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The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets (in millions):

		September 30, 2021						December 31, 2020
	Balance Sheet Location	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
Specialty Products and Solutions segment:
Inventory financing obligation	Obligations under inventory financing agreements	$	(15.6)	$	—	$	(15.6)	$	(1.1)	$	—	$	(1.1)
Montana/Renewables segment:
Inventory financing obligation	Obligations under inventory financing agreements	(4.4)		—		(4.4)		(1.1)		—		(1.1)
WCS crude oil basis swaps	Other current liabilities	—		—		—		(1.7)		0.4		(1.3)
Total derivative instruments		$	(20.0)	$	—	$	(20.0)	$	(3.9)	$	0.4	$	(3.5)

Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty. The Company does not expect that it will experience a material adverse change in its business.

The cash flow impact of the Company’s derivative activities is classified primarily as a change in assets and liabilities in the operating activities section in the unaudited condensed consolidated statements of cash flows.

Derivative Instruments Not Designated as Hedges

For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into natural gas swaps, crack spread swaps and crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes. However, these instruments provide economic hedges of the purchases and sales of the Company’s natural gas, crude oil, and refined products.

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The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three months ended September 30, 2021 and 2020, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments
	Three Months Ended September 30,				Three Months Ended September 30,
	2021		2020		2021		2020
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(2.8)	$	(2.2)
Natural gas swaps	—		0.1		—		0.7
Crack spread swaps	—		8.7		—		(6.7)
Montana/Renewables segment:
Inventory financing obligation	—		—		(0.5)		(0.3)
WCS crude oil basis swaps	—		8.3		—		(0.7)
Total	$	—	$	17.1	$	(3.3)	$	(9.2)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2021 and 2020, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments
	Nine Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(14.5)	$	5.1
Natural gas swaps	—		(0.5)		—		0.5
Crack spread swaps	—		24.1		—		6.1
Montana/Renewables segment:
Inventory financing obligation	—		—		(3.3)		4.1
WCS crude oil basis swaps	1.1		12.9		1.3		5.4
Total	$	1.1	$	36.5	$	(16.5)	$	21.2

Derivative Positions

At September 30, 2021, the Company had no outstanding derivative contracts.

11. Fair Value Measurements

In accordance with ASC 820, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following:

•Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities

•Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable

•Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions

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In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment.

Recurring Fair Value Measurements

Derivative Assets and Liabilities

Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Substantially all of the Company’s derivative instruments are with counterparties that have long-term credit ratings of at least A3 and BBB+ by Moody’s and S&P, respectively.

Commodity derivative instruments are measured at fair value using a market approach. To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk-free rate of return and contract maturity. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the counterparty through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. As a result of applying the applicable CVA at September 30, 2021 and December 31, 2020, the Company’s net assets and net liabilities changed, in each case, by an immaterial amount.

Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the counterparties and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. Please read Note 10 - “Derivatives” for further information on derivative instruments.

Pension Assets

Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements. At September 30, 2021 and December 31, 2020, the Company’s investments associated with its pension plan consisted of (i) cash and cash equivalents, (ii) fixed income bond funds, (iii) mutual equity funds, and (iv) mutual balanced funds. The fixed income bond funds, mutual equity funds, and mutual balanced funds are measured at fair value using a market approach based on quoted prices from national securities exchanges and are categorized in Level 1 of the fair value hierarchy.

Liability Awards

Unit-based compensation liability awards are awards that are currently expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date.

Renewable Identification Numbers Obligation

The Company’s RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on prices obtained from an independent pricing service. Please read Note 3 - “Summary of Significant Accounting Policies” for further information on the Company’s RINs Obligation.

Precious Metals Obligations

The fair value of precious metals obligations is based upon unadjusted exchange-quoted prices and is, therefore, classified within Level 1 of the fair value hierarchy.

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Hierarchy of Recurring Fair Value Measurements

The Company’s recurring assets and liabilities measured at fair value were as follows (in millions):

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Pension plan investments	$	34.3	$	—	$	—	$	34.3	$	34.4	$	—	$	—	$	34.4
Total recurring assets at fair value	$	34.3	$	—	$	—	$	34.3	$	34.4	$	—	$	—	$	34.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(20.0)	$	(20.0)	$	—	$	—	$	(2.2)	$	(2.2)
WCS crude oil basis swaps	—		—		—		—		—		—		(1.3)		(1.3)
Total derivative liabilities	$	—	$	—	$	(20.0)	$	(20.0)	$	—	$	—	$	(3.5)	$	(3.5)
RINs obligation	—		(240.4)		—		(240.4)		—		(129.4)		—		(129.4)
Precious metals obligations	(7.1)		—		—		(7.1)		(7.9)		—		—		(7.9)
Liability awards	(36.9)		—		—		(36.9)		(14.2)		—		—		(14.2)
Total recurring liabilities at fair value	$	(44.0)	$	(240.4)	$	(20.0)	$	(304.4)	$	(22.1)	$	(129.4)	$	(3.5)	$	(155.0)

The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions):

	Nine Months Ended September 30,
	2021		2020
Fair value at January 1,	$	(3.5)	$	(6.3)
Realized gain on derivative instruments	1.1		36.5
Unrealized gain (loss) on derivative instruments	(16.5)		21.2
Settlements	(1.1)		(36.5)
Fair value at September 30,	$	(20.0)	$	14.9
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	(16.5)	$	21.2

Nonrecurring Fair Value Measurements

Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The Company assesses goodwill for impairment annually and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements.

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property, plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements.

Estimated Fair Value of Financial Instruments

Cash and cash equivalents

The carrying value of cash and cash equivalents are each considered to be representative of their fair value.

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Debt

The estimated fair value of long-term debt at September 30, 2021 and December 31, 2020, consists primarily of senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s senior notes and secured notes defined as Level 2 was based upon quoted prices for identical or similar liabilities in markets that are not active. The carrying value of borrowings, if any, under the Company’s revolving credit facility, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. Please read Note 9 - “Long-Term Debt” for further information on long-term debt.

The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost were as follows (in millions):

		September 30, 2021				December 31, 2020
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2022 Notes and 2023 Notes	1	$	403.4	$	401.7	$	468.6	$	471.9
2024 Secured Notes and 2025 Notes	2	$	816.0	$	741.4	$	780.8	$	739.6
Revolving credit facility	3	$	48.1	$	46.1	$	108.0	$	104.8
Shreveport terminal asset financing arrangement	3	$	66.4	$	65.0	$	—	$	—
Finance leases and other obligations	3	$	5.2	$	5.2	$	6.0	$	6.0

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12. Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per limited partner unit (in millions, except unit and per unit data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator for basic and diluted earnings per limited partner unit:
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Less:
General partner’s interest in net income (loss)	1.0		(1.1)		(3.5)		(1.3)
Net income (loss) attributable to limited partners	$	50.5	$	(55.0)	$	(169.5)	$	(65.6)
Denominator for earnings per limited partner unit:
Basic weighted average limited partner units outstanding	78,924,380		78,743,083		78,831,988		78,602,651
Effect of dilutive securities:
Incremental Units	47,138		—		—		—
Diluted weighted average limited partner units outstanding (1)	78,971,518		78,743,083		78,831,988		78,602,651
Limited partners’ interest basic net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)
Limited partners’ interest diluted net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)

(1)Total diluted weighted average limited partner units outstanding excludes a de-minimis amount of potentially dilutive phantom units which would have been anti-dilutive for the three months ended September 30, 2020 and for the nine months ended September 30, 2021 and 2020.

13. Segments and Related Information

Segment Reporting

The Company determines its reportable segments based on how the business is managed internally for the products sold to customers, including how results are reviewed and resources are allocated by the chief operating decision maker (“CODM”). Effective January 1, 2021, the Company reorganized its business segments as a result of a change in how the CODM allocates resources, makes operating decisions and assesses the performance of its business. As a result, as of January 1, 2021, the Company’s operations are managed by the CODM using the following reportable segments:

•Specialty Products and Solutions. The Specialty Products and Solutions segment consists of our customer-focused solutions and formulations businesses, covering multiple specialty product lines, anchored by our unique integrated complex in North West Louisiana.

•Montana/Renewables. The Montana/Renewables segment is composed of our Great Falls refinery and dual-train energy transition project.

•Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands.

•Corporate. The Corporate segment primarily consists of general and administrative expenses not allocated to the Montana/Renewables, Specialty Products and Solutions, or Performance Brands segments.

Segment information presented herein reflects the impact of this reorganization for all periods presented.

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During the first quarter of 2021, the CODM changed the definition and calculation of Adjusted EBITDA to exclude RINs mark-to-market adjustments (see item (j) below). The Company’s RINs liability is calculated by multiplying the RINs shortage (based on actual results) by the period end spot price and is subsequently revalued as of the last day of each accounting period. The resulting non-cash adjustments are included in cost of sales in the statement of operations, with the exception of RINs for the 2019 compliance year related to the San Antonio refinery, which are included in other operating expense. The Company believes that this revised definition and calculation better reflects the performance of the Company’s business segments including cash flows because it excludes these non-cash fluctuations. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 - “Summary of Significant Accounting Policies,” of the Company’s 2020 Annual Report on Form 10-K, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for inter-segment sales and transfers using market-based transfer pricing. The Company will periodically refine its expense allocation methodology for its segment reporting as more specific information becomes available and the industry or market changes. In addition, the accounting policies of the reporting segments for shipping and handling costs, which are primarily costs paid to third-party shippers for transporting products to customers, are the same as that described in this report in Note 2 - “Change in Accounting Policy.” The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark-to-market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) 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); (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; and (k) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

Reportable segment information for the three months ended September 30, 2021 and 2020, is as follows (in millions):

Three Months Ended September 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	583.5	$	63.0	$	228.4	$	—	$	—	$	874.9
Inter-segment sales	5.1		—		—		—		(5.1)		—
Total sales	$	588.6	$	63.0	$	228.4	$	—	$	(5.1)	$	874.9
Adjusted EBITDA	$	46.3	$	6.8	$	24.4	$	(18.7)	$	—	$	58.8
Reconciling items to net income:
Depreciation and amortization	16.7		3.4		8.5		1.9		—		30.5
LCM / LIFO gain	(0.8)		(2.9)		(1.0)		—		—		(4.7)
Gain on sale of business, net	(0.2)		—		—		—		—		(0.2)
Interest expense	6.0		0.2		1.9		30.1		—		38.2
Unrealized loss on derivatives	2.8		—		0.5		—		—		3.3
RINs mark-to-market gain	(42.8)		—		(24.1)		—		—		(66.9)
Equity-based compensation and other items											6.7
Income tax expense											0.4
Net income											$	51.5
Capital expenditures	$	8.5	$	0.9	$	16.4	$	—	$	—	$	25.8
PP&E, net	$	382.4	$	34.0	$	476.7	$	10.6	$	—	$	903.7

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Three Months Ended September 30, 2020	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	366.2	$	60.9	$	140.9	$	—	$	—	$	568.0
Inter-segment sales	3.3		0.1		—		—		(3.4)		—
Total sales	$	369.5	$	61.0	$	140.9	$	—	$	(3.4)	$	568.0
Adjusted EBITDA	$	23.2	$	18.9	$	9.7	$	(17.1)	$	—	$	34.7
Reconciling items to net loss:
Depreciation and amortization	14.8		4.0		9.5		1.9		—		30.2
LCM / LIFO (gain) loss	0.5		1.3		(0.7)		—		—		1.1
Interest expense	1.3		0.1		0.8		31.1		—		33.3
Unrealized loss on derivatives	8.2		—		1.0		—		—		9.2
RINs mark-to-market loss	6.4		—		2.9		—		—		9.3
Other non-recurring expenses											5.5
Equity-based compensation and other items											2.1
Income tax expense											0.1
Net loss											$	(56.1)
Capital expenditures	$	6.3	$	0.5	$	3.4	$	0.1	$	—	$	10.3
PP&E, net	$	412.3	$	34.5	$	468.5	$	17.6	$	—	$	932.9

Nine Months Ended September 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,507.4	$	194.4	$	580.4	$	—	$	—	$	2,282.2
Inter-segment sales	13.2		—		—		—		(13.2)		—
Total sales	$	1,520.6	$	194.4	$	580.4	$	—	$	(13.2)	$	2,282.2
Adjusted EBITDA	$	75.9	$	30.1	$	35.2	$	(55.5)	$	—	$	85.7
Reconciling items to net loss:
Depreciation and amortization	49.3		10.2		25.5		5.9		—		90.9
LCM / LIFO gain	(29.7)		(3.4)		(12.0)		—		—		(45.1)
Loss on impairment and disposal of assets	1.8		—		0.1		—		—		1.9
Gain on sale of business, net	(0.2)		—		—		—		—		(0.2)
Interest expense	12.7		0.3		3.5		92.8		—		109.3
Debt extinguishment costs	—		—		—		0.4		—		0.4
Unrealized loss on derivatives	14.5		—		2.0		—		—		16.5
RINs mark-to-market loss	38.8		—		17.5		—		—		56.3
Other non-recurring expenses											2.8
Equity-based compensation and other items											24.4
Income tax expense											1.5
Net loss											$	(173.0)
Capital expenditures	$	45.4	$	2.0	$	27.7	$	—	$	—	$	75.1
PP&E, net	$	382.4	$	34.0	$	476.7	$	10.6	$	—	$	903.7

Nine Months Ended September 30, 2020	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,156.6	$	177.3	$	380.4	$	—	$	—	$	1,714.3
Inter-segment sales	9.7		0.3		—		—		(10.0)		—
Total sales	$	1,166.3	$	177.6	$	380.4	$	—	$	(10.0)	$	1,714.3
Adjusted EBITDA	$	125.6	$	47.1	$	64.9	$	(54.1)	$	—	$	183.5
Reconciling items to net loss:
Depreciation and amortization	45.6		12.0		28.2		5.7		—		91.5
LCM / LIFO loss	31.2		1.3		3.0		—		—		35.5
Loss on impairment and disposal of assets	0.2		1.4		—		5.1		—		6.7
Interest (benefit) expense	(0.1)		0.3		0.1		92.9		—		93.2
Unrealized gain on derivatives	(11.7)		—		(9.5)		—		—		(21.2)
RINs mark-to-market loss	24.3		—		9.1		—		—		33.4
Other non-recurring expenses											4.3
Equity-based compensation and other items											6.2
Income tax expense											0.8
Net loss											$	(66.9)
Capital expenditures	$	42.8	$	1.3	$	9.9	$	0.5	$	—	$	54.5
PP&E, net	$	412.3	$	34.5	$	468.5	$	17.6	$	—	$	932.9

Geographic Information

International sales accounted for less than ten percent of consolidated sales in the three months ended September 30, 2021 and greater than ten percent of consolidated sales in the three months ended September 30, 2020. International sales accounted for less than ten percent of consolidated sales in each of the nine months ended September 30, 2021 and 2020.

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Product Information

The Company offers specialty, fuels, and packaged products primarily in categories consisting of lubricating oils, solvents, waxes, gasoline, diesel, jet fuel, asphalt, heavy fuel oils, high-performance branded specialty products, and other specialty and fuels products. The following table sets forth the major product category sales for the Company’s business segments for the three months ended September 30, 2021 and 2020 (dollars in millions):

	Three Months Ended September 30,
	2021				2020
Specialty Products and Solutions:
Lubricating oils	$	192.0	21.9	%	$	122.5	21.6	%
Solvents	81.7		9.3	%	54.6		9.6	%
Waxes	40.6		4.7	%	33.8		6.0	%
Fuels, asphalt and other by-products	269.2		30.8	%	155.3		27.3	%
Total	$	583.5	66.7	%	$	366.2	64.5	%
Montana/Renewables:
Gasoline	$	53.9	6.2	%	$	38.8	6.8	%
Diesel	92.6		10.5	%	50.9		9.0	%
Jet fuel	8.6		1.0	%	3.7		0.6	%
Asphalt, heavy fuel oils and other	73.3		8.4	%	47.5		8.4	%
Total	$	228.4	26.1	%	$	140.9	24.8	%
Performance Brands:	$	63.0	7.2	%	$	60.9	10.7	%
Consolidated sales	$	874.9	100.0	%	$	568.0	100.0	%

The following table sets forth the major product category sales for the Company’s business segments for the nine months ended September 30, 2021 and 2020 (dollars in millions):

	Nine Months Ended September 30,
	2021				2020
Specialty Products and Solutions:
Lubricating oils	$	482.2	21.1	%	$	352.5	20.6	%
Solvents	223.0		9.8	%	179.0		10.4	%
Waxes	110.1		4.9	%	92.2		5.4	%
Fuels, asphalt and other by-products	692.1		30.3	%	532.9		31.1	%
Total	$	1,507.4	66.1	%	$	1,156.6	67.5	%
Montana/Renewables:
Gasoline	$	137.4	6.0	%	$	103.0	6.0	%
Diesel	241.7		10.6	%	150.3		8.8	%
Jet fuel	21.0		0.9	%	11.7		0.7	%
Asphalt, heavy fuel oils and other	180.3		7.9	%	115.4		6.7	%
Total	$	580.4	25.4	%	$	380.4	22.2	%
Performance Brands:	$	194.4	8.5	%	$	177.3	10.3	%
Consolidated sales	$	2,282.2	100.0	%	$	1,714.3	100.0	%

Major Customers

During the three and nine months ended September 30, 2021 and 2020, the Company had no customer that represented 10% or greater of consolidated sales.

Major Suppliers

During the three months ended September 30, 2021 and 2020, the Company had two suppliers that supplied approximately 92.4% and 88.6%, respectively, of its crude oil supply. During the nine months ended September 30, 2021 and 2020, the Company had two suppliers that supplied approximately 89.2% and 82.2%, respectively, of its crude oil supply.

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14. Subsequent Events

As of November 1, 2021, the fair value of the Company’s derivatives have increased by approximately $4.5 million subsequent to September 30, 2021.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The historical unaudited condensed consolidated financial statements included in this Quarterly Report reflect all of the assets, liabilities and results of operations of Calumet Specialty Products Partners, L.P. (“Calumet,” the “Company,” “we,” “our,” or “us”). The following discussion analyzes the financial condition and results of operations of the Company for the three and nine months ended September 30, 2021. Unitholders should read the following discussion and analysis of our financial condition and results of operations in conjunction with our 2020 Annual Report and our historical unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report.

Overview

We manufacture, formulate, and market a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.

Effective January 1, 2021, we reorganized our business segments as a result of a change in how the CODM allocates resources, makes operating decisions and assesses the performance of the business. As a result, as of January 1, 2021, our operations are managed by the CODM using the following reportable segments: Montana/Renewables; Specialty Products and Solutions; Performance Brands; and Corporate. Segment information presented herein reflects the impact of this reorganization for all periods presented. For additional information, see Note 13 - “Segments and Related Information” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements.” In our Specialty Products and Solutions segment, we process crude oil and other feedstocks into a wide variety of customized lubricating oils, solvents, waxes and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for basic industrial, consumer and automotive goods. In our Montana/Renewables segment, we process crude oil into a variety of fuels and fuel-related products, including gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other products. Additionally, we are in the process of converting a significant portion of our Great Falls refinery into a Renewable Diesel Production facility, which we expect to commence operations in the second quarter of 2022. In our Performance Brands segment, we blend, package and market specialty products through our Royal Purple, Bel-Ray, and TruFuel brands. Our Corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products and Solutions, Montana/Renewables, or Performance Brands segments. Please read Note 13 - “Segments and Related Information” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for further information.

Third Quarter 2021 Update

Outlook and Trends

The world continues to navigate the COVID-19 pandemic. Global economic conditions continue to improve, driven by increases in vaccination rates in the U.S. and across the world, which has resulted in increased demand and higher prices for many industrial and consumer goods products, as well as energy prices. Additionally, most industries continued to see supply chain disruptions during the third quarter of 2021, and while the global dynamic is receiving elevated attention in all areas, it’s difficult to predict when all challenges will be fully resolved. The global crisis has impacted Calumet’s businesses in various ways. Concurrently, our businesses continue to see strong, growing demand for products across our segments. Our Performance Brands segment has been most impacted by the global supply chain disruption, and as we navigate this environment in a time of rapidly growing demand, our order backlog continues to grow. Our Specialty Products and Solutions segment is experiencing record specialty unit margins and fuels margins have increased for the third straight quarter as the industry reacts to a global economic recovery and a shortage of hydrocarbon products in certain markets. Asphalt markets continued to improve with seasonal demand strength through the end of summer into early fall. These fundamentals allowed for healthy unit margins in the third quarter of 2021 compared to the third quarter of 2020, despite a significantly higher price environment during this quarter. The following factors have impacted or may impact our results of operations during 2021:

•We continue to see an increase in demand for our products as the domestic and global economies recover from the COVID-19 pandemic. We continue to monitor for the impact of COVID-19 variants, any increase in cases and/or the reinstatement of lockdowns and other restrictions, each of which could negatively impact the recovery from the COVID-19 pandemic.

•We expect supply chains to remain disrupted, which is expected to continue to provide challenges to the availability and pricing of feedstocks, additives, packaging materials and transportation.

•We continue to focus on improving operations. Our total feedstock runs were 80,021 barrels per day (“bpd”) during the third quarter 2021 compared to 81,813 bpd during the third quarter 2020. This decrease is primarily attributed to lower production volumes at our Shreveport facility.

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•Our Specialty Products and Solutions margins have remained strong but certain of our end markets are susceptible to changes in Gross Domestic Product. As markets and results improve, we expect to make small investments in this segment that we believe are low-risk, high-return investments.

•It is not possible to predict what future RINs costs may be given the price volatility, but RINs continue to have the potential to remain a significant non-cash expense in our results of operations. The approximate 25% decrease in the third quarter 2021 period-end market price of RINs in comparison to the second quarter 2021 market price of RINs favorably affected our financial results. See Note 7 - “Commitments and Contingencies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report for further information on the Company’s RINs obligation.

•We continue to evaluate opportunities to divest non-core businesses and assets in line with our strategy of de-leveraging and streamlining our business to better focus on the advancement of our core business. In addition, we may also consider the disposition of certain core assets or businesses, to the extent such a transaction would improve our capital structure or otherwise be accretive to the Company. Lastly, we may seek acquisitions of assets that management believes will be financially accretive and consistent with our strategic goals.

We developed and executed a plan to manage health and safety risks and business continuity to protect our workforce and business during the COVID-19 pandemic. Comprehensive guidelines and requirements for the return to work of personnel to their locations have been implemented and these will continue to be monitored as we manage COVID-19. To reinforce cost control and preserve cash, we expect to continue to diligently manage operating and capital costs. As markets continue to improve, high-return low risk projects may be added opportunistically. Furthermore, the Company’s conversion of our Great Falls, MT asset into a leading Renewable Diesel facility is on track. In addition to other project-related agreements, the Company has entered into an Engineering, Procurement and Construction Agreement with Burns & McDonnell Engineering Company, Inc. (as general contractor for the project); a License Agreement and Engineering Agreement with Haldor Topsoe A/S and Haldor Topsoe, Inc., respectively (as technology provider for the Renewable Diesel process); and an Engineering and Procurement Agreement with Technip Stone & Webster Process Technology, Inc. (as technology provider for the Renewable Hydrogen process).

Contingencies

For a summary of litigation and other contingencies, please read Note 7 - “Commitments and Contingencies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements.” Based on information available to us at the present time, we do not believe that any liabilities beyond the amounts already accrued, which may result from these contingencies, will have a material adverse effect on our liquidity, financial condition or results of operations.

Financial Results

We reported net income of $51.5 million in the third quarter 2021 versus a net loss of $56.1 million in the third quarter 2020. We reported Adjusted EBITDA (as defined in Note 13 - “Segments and Related Information” under Part I, Item 1 “Financial Statements - Notes to Unaudited Condensed Consolidated Financial Statements”) of $58.8 million in the third quarter 2021 versus $34.7 million in the third quarter 2020. We generated cash from operating activities of $59.4 million in the third quarter 2021 versus generating cash of $14.5 million in the third quarter of 2020, driven by an increase of $107.6 million in net income between the comparative periods, which was partially offset by an increase in the cash required for working capital.

Please read Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures” for a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable financial performance measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

Specialty Products and Solutions segment Adjusted EBITDA was $46.3 million in the third quarter 2021 versus $23.2 million in the third quarter 2020. Compared to the third quarter of 2020, Specialty Products and Solutions third quarter 2021 segment Adjusted EBITDA was favorably impacted by a significant increase in specialty products net unit margins as a result of higher specialty product pricing and continued fuels market recovery, partially offset by the absence of $8.8 million in realized gains on derivative instruments in the prior year comparative period.

Montana/Renewables segment Adjusted EBITDA was $24.4 million in the third quarter 2021 versus $9.7 million in the third quarter 2020. Compared to the third quarter of 2020, Montana/Renewables third quarter 2021 segment Adjusted EBITDA was favorably impacted by an increase in net unit margins as a result of a wider WCS-WTI crude spread and improved crack spreads for transportation fuels, which was partially offset by the absence of $8.3 million in realized gains on derivative instruments in the prior year comparative period.

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Performance Brands segment Adjusted EBITDA was $6.8 million in the third quarter 2021 versus $18.9 million in the third quarter 2020. Compared to the third quarter of 2020, Performance Brands segment Adjusted EBITDA was unfavorably impacted by a $5.4 million decrease in gross profit due to the natural lag in passing increasing costs through to customers in these branded and consumer markets. Further, supply chain difficulties, including packaging availability, difficult logistics markets, and additive and grease supply shortages continue to challenge our ability to keep pace with strong demand. Despite the ongoing supply chain difficulties, we have seen favorable improvements in pricing and demand for our TruFuel, Royal Purple, and Bel-Ray brands, which remained resilient and continued to see demand growth. Unfortunately, much of the demand currently sits in our backorder queue pending our industry’s supply chains return to normal.

Corporate Adjusted EBITDA was negative $18.7 million in the third quarter 2021 versus negative $17.1 million in the third quarter 2020 primarily due to higher labor and benefit expenses.

Liquidity Update

As of September 30, 2021, we had total liquidity of $280.7 million comprised of $10.8 million of unrestricted cash and $269.9 million of availability under our revolving credit facility. As of September 30, 2021, our revolving credit facility had a $345.9 million borrowing base, $27.9 million in outstanding standby letters of credit and $48.1 million of outstanding borrowings. We believe we will continue to have sufficient liquidity from cash on hand, projected cash flow from operations, borrowing capacity and other means by which to meet our financial commitments, debt service obligations, contingencies and anticipated capital expenditures for at least the next 12 months. Please read Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources” for additional information.

Renewable Fuel Standard Update

Along with the broader refining industry, we remain subject to compliance costs under the RFS unless or until we receive a small refiner exemption from the EPA, which we have historically received. Under the regulation of the EPA, the RFS provides annual requirements for the total volume of renewable transportation fuels which are mandated to be blended into finished petroleum fuels. If a refiner does not meet its required annual Renewable Volume Obligation, the refiner can purchase blending credits in the open market, referred to as RINs.

During the third quarter 2021, we recorded a non-cash benefit of $42.4 million for RINs, as compared to a non-cash RINs expense of $16.0 million for the third quarter 2020. Our annual gross RINs Obligation, which includes RINs that are required to be secured through either our own blending or through the purchase of RINs in the open market, is approximately 80 million RINs spread across four compliance categories (D3, D4, D5 and D6). The gross RINs obligations exclude our own renewables blending as well as the potential for any subsequent hardship waivers.

Expenses related to RFS compliance have the potential to remain a significant expense for our two segments containing fuels products. If legal or regulatory changes occur that have the effect of increasing our RINs Obligation or eliminating or narrowing the availability of the small refinery exemption under the RFS program, we could be required to purchase additional RINs in the open market, which may materially increase our costs related to RFS compliance and could have a material adverse effect on our results of operations and liquidity.

See Note 7 - “Commitments and Contingencies” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report for further information on the Company’s RINs obligation.

Key Performance Measures

Our sales and results of operations are principally affected by demand for specialty products, fuel product demand, global fuel crack spreads, the price of natural gas used as fuel in our operations, our ability to operate our production facilities at high utilization, and our results from derivative instrument activities.

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Our primary raw materials are crude oil and other specialty feedstocks, and our primary outputs are specialty consumer-facing and industrial products, specialty branded products, and fuel products. The prices of crude oil, specialty products and fuel products are subject to fluctuations in response to changes in supply, demand, market uncertainties and a variety of factors beyond our control. We monitor these risks and from time-to-time enter into derivative instruments designed to help mitigate the impact of commodity price fluctuations on our business. The primary purpose of our commodity risk management activities is to economically hedge our cash flow exposure to commodity price risk. We also may hedge when market conditions exist that we believe to be out of the ordinary and particularly supportive of our financial goals. We enter into derivative contracts for future periods in quantities that do not exceed our projected purchases of crude oil and natural gas and sales of fuel products. Please read Note 10 — “Derivatives” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information.

Our management uses several financial and operational measurements to analyze our performance. These measurements include the following:

•sales volumes;

•segment gross profit;

•segment Adjusted gross profit;

•segment Adjusted EBITDA; and

•selling, general and administrative expenses.

Sales volumes. We view the volumes of Specialty Products and Solutions products, Montana/Renewables products and Performance Brands products sold as an important measure of our ability to effectively utilize our operating assets. Our ability to meet the demands of our customers is driven by the volumes of feedstocks that we run at our facilities. Higher volumes improve profitability both through the spreading of fixed costs over greater volumes and the additional gross profit achieved on the incremental volumes.

Segment gross profit. Specialty Products and Solutions, Montana/Renewables and Performance Brands products gross profit are important measures of profitability of our segments. We define gross profit as sales less the cost of crude oil and other feedstocks, LCM/LIFO adjustments, and other production-related expenses, the most significant portion of which includes labor, plant fuel, utilities, contract services, maintenance, transportation, RINs, depreciation and amortization and processing materials. We use gross profit as an indicator of our ability to manage margins in our business over the long-term. The increase or decrease in selling prices typically lags behind the rising or falling costs, respectively, of feedstocks throughout our business. Other than plant fuel, RINs mark-to-market adjustments, and LCM/LIFO adjustments, production related expenses generally remain stable across broad ranges but can fluctuate depending on maintenance activities performed during a specific period.

Segment Adjusted gross profit. Specialty Products and Solutions, Montana/Renewables and Performance Brands products segment Adjusted gross profit measures are useful as they exclude transactions not related to our core cash operating activities and provide metrics to analyze the profitability of the core cash operations of our segments. We define segment Adjusted gross profit as segment gross profit excluding the impact of (a) LCM inventory adjustments; (b) the impact of liquidation of inventory layers calculated using the LIFO method; (c) RINs mark-to-market adjustments; and (d) depreciation and amortization.

Segment Adjusted EBITDA. We believe that Specialty Products and Solutions, Montana/Renewables and Performance Brands segment Adjusted EBITDA measures are useful as they exclude transactions not related to our core cash operating activities and provide metrics to analyze our ability to pay interest to our noteholders. Adjusted EBITDA allows us to meaningfully analyze the trends and performance of our core cash operations as well as to make decisions regarding the allocation of resources to segments. Corporate Adjusted EBITDA primarily reflects general and administrative costs.

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Results of Operations for the Three and Nine Months Ended September 30, 2021 and 2020

Production Volume. The following table sets forth information about our continuing operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased blendstocks such as ethanol and specialty blendstocks, as well as the resale of crude oil.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021	2020	% Change		2021	2020	% Change
	(In bpd)				(In bpd)
Total sales volume (1)	82,844	85,529	(3.1)	%	79,511	88,429	(10.1)	%
Total feedstock runs (2)	80,021	81,813	(2.2)	%	73,988	85,282	(13.2)	%
Facility production: (3)
Specialty Products and Solutions:
Lubricating oils	10,817	10,634	1.7	%	9,537	9,839	(3.1)	%
Solvents	7,163	6,323	13.3	%	6,832	6,500	5.1	%
Waxes	1,529	1,199	27.5	%	1,305	1,253	4.2	%
Fuels, asphalt and other by-products	29,242	32,696	(10.6)	%	25,492	36,376	(29.9)	%
Total Specialty Products and Solutions	48,751	50,852	(4.1)	%	43,166	53,968	(20.0)	%
Montana/Renewables:
Gasoline	4,763	5,670	(16.0)	%	4,979	5,436	(8.4)	%
Diesel	10,328	10,412	(0.8)	%	10,147	10,466	(3.0)	%
Jet fuel	1,169	764	53.0	%	974	698	39.5	%
Asphalt, heavy fuel oils and other	10,883	9,605	13.3	%	11,035	10,306	7.1	%
Total Montana/Renewables	27,143	26,451	2.6	%	27,135	26,906	0.9	%
Performance Brands	1,226	1,458	(15.9)	%	1,355	1,407	(3.7)	%
Total facility production (3)	77,120	78,761	(2.1)	%	71,656	82,281	(12.9)	%

(1)Total sales volume includes sales from the production at our facilities and certain third-party facilities pursuant to supply and/or processing agreements, sales of inventories and the resale of crude oil to third-party customers. Total sales volume includes the sale of purchased blendstocks.

(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.

(3)The difference between total facility production and total feedstock runs is primarily a result of the time lag between the input of feedstocks and production of finished products and volume loss.

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The following table reflects our unaudited condensed consolidated results of operations and includes the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. For a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable financial performance measure calculated and presented in accordance with GAAP, please read “— Non-GAAP Financial Measures.”

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(In millions)
Sales	$	874.9	$	568.0	$	2,282.2	$	1,714.3
Cost of sales	741.6		551.5		2,171.8		1,609.8
Gross profit	133.3		16.5		110.4		104.5
Operating costs and expenses:
Selling	12.4		11.2		40.0		37.1
General and administrative	30.9		29.7		97.3		76.7
Other operating expense	(3.3)		6.4		20.0		22.6
Operating income (loss)	93.3		(30.8)		(46.9)		(31.9)
Other income (expense):
Interest expense	(38.2)		(33.3)		(109.3)		(93.2)
Gain (loss) on derivative instruments	(3.3)		7.9		(15.4)		57.7
Other	0.1		0.2		0.1		1.3
Total other expense	(41.4)		(25.2)		(124.6)		(34.2)
Net income (loss) before income taxes	51.9		(56.0)		(171.5)		(66.1)
Income tax expense	0.4		0.1		1.5		0.8
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
EBITDA	$	116.6	$	3.5	$	16.5	$	105.9
Adjusted EBITDA	$	58.8	$	34.7	$	85.7	$	183.5
Distributable Cash Flow	$	12.6	$	(5.6)	$	(75.1)	$	50.9

Non-GAAP Financial Measures

We include in this Quarterly Report the non-GAAP financial measures EBITDA, Adjusted EBITDA and Distributable Cash Flow. We provide reconciliations of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net income (loss), our most directly comparable financial performance measure.

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:

•the financial performance of our assets without regard to financing methods, capital structure or historical cost basis;

•the ability of our assets to generate cash sufficient to pay interest costs and support our indebtedness;

•our operating performance and return on capital as compared to those of other companies in our industry, without regard to financing or capital structure; and

•the viability of acquisitions and capital expenditure projects and the overall rates of return on alternative investment opportunities.

Management believes 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 interest to our noteholders. However, the indentures governing our senior notes contain covenants that, among other things, restrict our ability to pay distributions. We believe that excluding these transactions allows investors to meaningfully analyze trends and performance of our core cash operations.

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

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During the first quarter of 2021, the CODM changed the definition and calculation of Adjusted EBITDA, which we use for evaluating performance, allocating resources and managing the business. The revised definition and calculation of Adjusted EBITDA now excludes RINs mark-to-market adjustments (see item (j) below), which were previously included. This revised definition and calculation better reflects the performance of our Company’s business segments including cash flows and core operating activities. Adjusted EBITDA has been revised for all periods presented to reflect this change. Please read Note 13 - “Segments and Related Information” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for further information.

We define Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark-to-market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) 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); (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; and (k) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

We define Distributable Cash Flow for any period as Adjusted EBITDA less replacement and environmental capital expenditures, turnaround costs, cash interest expense (consolidated interest expense less non-cash interest expense), gain (loss) from unconsolidated affiliates, net of cash distributions and income tax expense (benefit).

We define Adjusted EBITDA Margin as Adjusted EBITDA divided by sales.

The definition of Adjusted EBITDA presented in this Quarterly Report is similar to the calculation of “Consolidated Cash Flow” contained in the indentures governing our Senior Notes (as defined in this Quarterly Report) and the calculation of “Consolidated EBITDA” contained in the Credit Agreement. We are required to report Consolidated Cash Flow to the holders of our Senior Notes and Consolidated 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. Please read Note 9 - “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report 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 (loss) or Operating income (loss) 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 and Adjusted EBITDA do not reflect our liabilities 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 several 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.

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The following tables present a reconciliation of Net income (loss), our most directly comparable GAAP financial performance measure to EBITDA, Adjusted EBITDA and Distributable Cash Flow, for each of the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(In millions)
Reconciliation of Net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow:
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Add:
Interest expense	38.2		33.3		109.3		93.2
Depreciation and amortization	26.5		26.2		78.7		78.8
Income tax expense	0.4		0.1		1.5		0.8
EBITDA	$	116.6	$	3.5	$	16.5	$	105.9
Add:
LCM / LIFO (gain) loss	$	(4.7)	$	1.1	$	(45.1)	$	35.5
Unrealized (gain) loss on derivative instruments	3.3		9.2		16.5		(21.2)
Amortization of turnaround costs	4.0		4.0		12.2		12.7
Debt extinguishment costs	—		—		0.4		—
Loss on impairment and disposal of assets	—		—		1.9		6.7
Gain on sale of business, net	(0.2)		—		(0.2)		—
RINs mark-to-market (gain) loss	(66.9)		9.3		56.3		33.4
Equity-based compensation and other items	6.7		2.1		24.4		6.2
Other non-recurring expenses	—		5.5		2.8		4.3
Adjusted EBITDA	$	58.8	$	34.7	$	85.7	$	183.5
Less:
Replacement and environmental capital expenditures (1)	$	0.5	$	5.0	$	14.3	$	23.7
Cash interest expense (2)	36.6		31.6		104.2		88.4
Turnaround costs	8.7		3.6		40.8		19.7
Income tax expense	0.4		0.1		1.5		0.8
Distributable Cash Flow	$	12.6	$	(5.6)	$	(75.1)	$	50.9

(1)Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude turnaround costs. Environmental capital expenditures include asset additions to meet or exceed environmental and operating regulations.

(2)Represents consolidated interest expense less non-cash interest expense.

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Changes in Results of Operations for the Three Months Ended September 30, 2021 and 2020

Sales. Sales increased $306.9 million, or 54.0%, to $874.9 million in the three months ended September 30, 2021, from $568.0 million in the same period in 2020. Sales for each of our principal product categories in these periods were as follows:

	Three Months Ended September 30,
	2021		2020		% Change
	(Dollars in millions, except barrel and per barrel data)
Sales by segment:
Specialty Products and Solutions:
Lubricating oils	$	192.0	$	122.5	56.7	%
Solvents	81.7		54.6		49.6	%
Waxes	40.6		33.8		20.1	%
Fuels, asphalt and other by-products (1)	269.2		155.3		73.3	%
Total Specialty Products and Solutions	$	583.5	$	366.2	59.3	%
Total Specialty Products and Solutions sales volume (in barrels)	4,836,000		4,983,000		(3.0)	%
Average Specialty Products and Solutions sales price per barrel	$	120.66	$	73.49	64.2	%
Montana/Renewables:
Gasoline	$	53.9	$	38.8	38.9	%
Diesel	92.6		50.9		81.9	%
Jet Fuel	8.6		3.7		132.4	%
Asphalt, heavy fuel oils and other (2)	73.3		47.5		54.3	%
Total Montana/Renewables	$	228.4	$	140.9	62.1	%
Total Montana/Renewables sales volume (in barrels)	2,664,000		2,756,000		(3.3)	%
Average Montana/Renewables sales price per barrel	$	85.74	$	51.12	67.7	%
Performance Brands:
Total Performance Brands (3)	$	63.0	$	60.9	3.4	%
Total Performance Brands sales volume (in barrels)	121,000		130,000		(6.9)	%
Average Performance Brands sales price per barrel	$	520.66	$	468.46	11.1	%
Total sales	$	874.9	$	568.0	54.0	%
Total Specialty Products and Solutions, Montana/Renewables, and Performance Brands sales volume (in barrels)	7,621,000		7,869,000		(3.2)	%

(1)Represents (a) by-products, including fuels and asphalt, produced in connection with the production of specialty products at the Princeton and Cotton Valley refineries and Dickinson and Karns City facilities, (b) polyolester synthetic lubricants produced at the Missouri facility, and (c) fuels products produced at the Shreveport refinery.

(2)Represents asphalt, heavy fuel oils and other products produced in connection with the production of fuels at the Great Falls refinery.

(3)Represents packaged and synthetic specialty products at the Royal Purple, Bel-Ray and Calumet Packaging facilities.

The components of the $217.3 million increase in Specialty Products and Solutions segment sales for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Volume	$	(10.8)
Sales price	228.1
Total Specialty Products and Solutions segment sales increase	$	217.3

Specialty Products and Solutions segment sales increased period over period primarily due to significantly higher prices for both specialty products and transportation fuels. The favorable price impact was partially offset by a decrease in sales volumes as a result of unplanned downtime at our Shreveport facility in the third quarter of 2021.

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The components of the $87.5 million increase in Montana/Renewables segment sales for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Volume	$	(4.7)
Sales price	92.2
Total Montana/Renewables segment sales increase	$	87.5

Montana/Renewables segment sales increased due to significantly higher global commodity prices. Sales volumes were relatively flat between the two comparative periods.

The components of the $2.1 million increase in Performance Brands segment sales for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Volume	$	(3.9)
Sales price	6.0
Total Performance Brands segment sales increase	$	2.1

Performance Brands segment sales increased due to an increase in product prices and partially offset by slightly lower sales volumes due to industry wide supply chain disruptions.

Gross Profit. Gross profit increased $116.8 million, or 707.9%, to $133.3 million in the three months ended September 30, 2021, from $16.5 million in the same period in 2020. Gross profit for our business segments were as follows:

	Three Months Ended September 30,
	2021			2020			% Change
	(Dollars in millions, except per barrel data)
Gross profit by segment:
Specialty Products and Solutions:
Gross profit	$	74.0		$	0.5		14,700.0	%
Percentage of sales	12.7		%	0.1		%	12.6	%
Specialty Products and Solutions gross profit per barrel	$	15.30		$	0.10		15,200.0	%
Montana/Renewables:
Gross profit (loss)	$	42.7		$	(6.0)		811.7	%
Percentage of sales	18.7		%	(4.3)		%	23.0	%
Montana/Renewables gross profit (loss) per barrel	$	16.03		$	(2.18)		835.3	%
Performance Brands:
Gross profit	$	16.6		$	22.0		(24.5)	%
Percentage of sales	26.3		%	36.1		%	(9.8)	%
Performance Brands gross profit per barrel	$	137.19		$	169.23		(18.9)	%
Total gross profit	$	133.3		$	16.5		707.9	%
Percentage of sales	15.2		%	2.9		%	12.3	%

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The components of the $73.5 million increase in Specialty Products and Solutions segment gross profit for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Three months ended September 30, 2020 reported gross profit	$	0.5
Cost of materials	(173.4)
Operating costs	(15.9)
LCM / LIFO inventory adjustments	1.3
Volumes	(2.4)
Sales price	228.1
RINs expense	35.8
Three months ended September 30, 2021 reported gross profit	$	74.0

The increase in Specialty Products and Solutions segment gross profit for the three months ended September 30, 2021, as compared to the same period in 2020, was primarily due to stronger net unit margins as a result of higher specialty product pricing and a decrease in non-cash RINs expense as a result of lower market prices for RINs. These factors were partially offset by higher operating costs as a result of increases in repairs and maintenance expenses and higher utility costs.

The components of the $48.7 million increase in Montana/Renewables segment gross profit (loss) for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Three months ended September 30, 2020 reported gross profit (loss)	$	(6.0)
Cost of materials	(61.6)
LCM / LIFO inventory adjustments	0.3
Volumes	(0.9)
Operating costs	(3.9)
RINs expense	22.6
Sales price	92.2
Three months ended September 30, 2021 reported gross profit	$	42.7

The increase in Montana/Renewables segment gross profit (loss) for the three months ended September 30, 2021, as compared to the same period in 2020, was primarily due to a wider crude WCS-WTI differential and improved crack spreads for transportation fuels during the current quarter driven by the overall improvement in market conditions and a decrease in non-cash RINs expense as a result of lower market prices for RINs.

The components of the $5.4 million decrease in Performance Brands segment gross profit for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Three months ended September 30, 2020 reported gross profit	$	22.0
Cost of materials	(13.9)
LCM / LIFO inventory adjustments	4.2
Volumes	(1.9)
Operating costs	0.1
Sales price	6.1
Three months ended September 30, 2021 reported gross profit	$	16.6

The decrease in Performance Brands segment gross profit for the three months ended September 30, 2021, as compared to the same period in 2020, was primarily driven by inflating material costs and the impact of supply chain disruptions during the current quarter. These factors were partially offset by higher product prices.

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General and administrative. General and administrative expenses increased $1.2 million, or 4.0%, to $30.9 million in the three months ended September 30, 2021, from $29.7 million in the same period in 2020. The increase was primarily due to a $2.0 million increase in labor and benefits related expenses.

Interest expense. Interest expense increased $4.9 million, or 14.7%, to $38.2 million in the three months ended September 30, 2021, from $33.3 million in the same period in 2020. The increase was primarily due to higher financing costs related to our Supply and Offtake Agreements in the current quarter in comparison to the prior year comparative period.

Gain (loss) on derivative instruments. There was a $3.3 million loss on derivative instruments in the three months ended September 30, 2021, compared to a $7.9 million gain in the same period in 2020. The $17.1 million realized gain on derivative instruments in the third quarter of 2020 was due to the settlement of our crack spread swaps and WCS crude oil basis swaps positions during the prior year period. There were no outstanding derivative positions settled in the third quarter of 2021. The impact of this item was partially offset by a $5.9 million decrease in unrealized losses on derivatives in the third quarter of 2021 in comparison to the prior year comparative period.

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Changes in Results of Operations for the Nine Months Ended September 30, 2021 and 2020

Sales. Sales increased $567.9 million, or 33.1%, to $2,282.2 million in the nine months ended September 30, 2021, from $1,714.3 million in the same period in 2020. Sales for each of our principal product categories in these periods were as follows:

	Nine Months Ended September 30,
	2021		2020		% Change
	(Dollars in millions, except barrel and per barrel data)
Sales by segment:
Specialty Products and Solutions:
Lubricating oils	$	482.2	$	352.5	36.8	%
Solvents	223.0		179.0		24.6	%
Waxes	110.1		92.2		19.4	%
Fuels, asphalt and other by-products (1)	692.1		532.9		29.9	%
Total Specialty Products and Solutions	$	1,507.4	$	1,156.6	30.3	%
Total Specialty Products and Solutions sales volume (in barrels)	13,557,000		15,992,000		(15.2)	%
Average Specialty Products and Solutions sales price per barrel	$	111.19	$	72.32	53.7	%
Montana/Renewables:
Gasoline	$	137.4	$	103.0	33.4	%
Diesel	241.7		150.3		60.8	%
Jet Fuel	21.0		11.7		79.5	%
Asphalt, heavy fuel oils and other (2)	180.3		115.4		56.2	%
Total Montana/Renewables	$	580.4	$	380.4	52.6	%
Total Montana/Renewables sales volume (in barrels)	7,754,000		7,857,000		(1.3)	%
Average Montana/Renewables sales price per barrel	$	74.85	$	48.42	54.6	%
Performance Brands:
Total Performance Brands (3)	$	194.4	$	177.3	9.6	%
Total Performance Brands sales volume (in barrels)	395,000		380,000		3.9	%
Average Performance Brands sales price per barrel	$	492.15	$	466.58	5.5	%
Total sales	$	2,282.2	$	1,714.3	33.1	%
Total Specialty Products and Solutions, Montana/Renewables, and Performance Brands sales volume (in barrels)	21,706,000		24,229,000		(10.4)	%

(1)Represents (a) by-products, including fuels and asphalt, produced in connection with the production of specialty products at the Princeton and Cotton Valley refineries and Dickinson and Karns City facilities, (b) polyolester synthetic lubricants produced at the Missouri facility, and (c) fuels products produced at the Shreveport refinery.

(2)Represents asphalt, heavy fuel oils and other products produced in connection with the production of fuels at the Great Falls refinery.

(3)Represents packaged and synthetic specialty products at the Royal Purple, Bel-Ray and Calumet Packaging facilities.

The components of the $350.8 million increase in Specialty Products and Solutions segment sales for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Volume	$	(176.1)
Sales price	526.9
Total Specialty Products and Solutions segment sales increase	$	350.8

Specialty Products and Solutions segment sales increased period over period, primarily due to the significantly higher price environment in the current year period. The favorable price impact was partially offset by a decrease in sales volumes as a result of the planned turnaround at our Shreveport facility in the first quarter of 2021, unplanned downtime resulting from the polar vortex and supply chain disruptions.

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The components of the $200.0 million increase in Montana/Renewables segment sales for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Volume	$	(5.0)
Sales price	205.0
Total Montana/Renewables segment sales increase	$	200.0

Montana/Renewables segment sales increased primarily due to increased sales prices as a result of the significantly higher price environment in the current year, in-line with the overall improvement in market conditions. Sales volumes were relatively flat between the two comparative periods.

The components of the $17.1 million increase in Performance Brands segment sales for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Volume	$	7.0
Sales price	10.1
Total Performance Brands segment sales increase	$	17.1

Performance Brands segment sales increased due to increases in volumes and prices, which were both driven by continued growth in the business for our TruFuel, Royal Purple, and Bel-Ray brands.

Gross Profit. Gross profit increased $5.9 million, or 5.6%, to $110.4 million in the nine months ended September 30, 2021, from $104.5 million in the same period in 2020. Gross profit for our business segments were as follows:

	Nine Months Ended September 30,
	2021			2020			% Change
	(Dollars in millions, except per barrel data)
Gross profit by segment:
Specialty Products and Solutions:
Gross profit	$	43.4		$	26.8		61.9	%
Percentage of sales	2.9		%	2.3		%	0.6	%
Specialty Products and Solutions gross profit per barrel	$	3.20		$	1.68		90.5	%
Montana/Renewables:
Gross profit	$	10.5		$	18.0		(41.7)	%
Percentage of sales	1.8		%	4.7		%	(2.9)	%
Montana/Renewables gross profit per barrel	$	1.35		$	2.29		(41.0)	%
Performance Brands:
Gross profit	$	56.5		$	59.7		(5.4)	%
Percentage of sales	29.1		%	33.7		%	(4.6)	%
Performance Brands gross profit per barrel	$	143.04		$	157.11		(9.0)	%
Total gross profit	$	110.4		$	104.5		5.6	%
Percentage of sales	4.8		%	6.1		%	(1.3)	%

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The components of the $16.6 million increase in Specialty Products and Solutions segment gross profit for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Nine months ended September 30, 2020 reported gross profit	$	26.8
Cost of materials	(477.0)
Operating costs	(31.0)
LCM / LIFO inventory adjustments	60.9
Volumes	(41.7)
Sales price	526.9
RINs expense	(21.5)
Nine months ended September 30, 2021 reported gross profit	$	43.4

The increase in Specialty Products and Solutions segment gross profit for the nine months ended September 30, 2021, as compared to the same period in 2020, was primarily due to stronger net unit margins as a result of strong specialty market demand and a decrease in non-cash LCM charges as the value of our inventory increases with global commodity inflation. These factors were partially offset by the unfavorable volumes impact resulting from the planned turnaround at our Shreveport facility in the first quarter of 2021 and unplanned downtime resulting from the polar vortex and logistics disruptions. Higher operating costs were due to expenses for freeze-related repairs and higher utility costs.

The components of the $7.5 million decrease in Montana/Renewables segment gross profit for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Nine months ended September 30, 2020 reported gross profit	$	18.0
Cost of materials	(203.0)
LCM / LIFO inventory adjustments	15.0
Volumes	(1.6)
Operating costs	(7.6)
RINs expense	(15.3)
Sales price	205.0
Nine months ended September 30, 2021 reported gross profit	$	10.5

The decrease in Montana/Renewables segment gross profit for the nine months ended September 30, 2021, as compared to the same period in 2020, was primarily due to an increase in operating costs driven by higher utility costs.

The components of the $3.2 million decrease in Performance Brands segment gross profit for the nine months ended September 30, 2021, as compared to the nine months ended September 30, 2020, were as follows:

	Dollar Change
	(In millions)
Nine months ended September 30, 2020 reported gross profit	$	59.7
Cost of materials	(24.0)
LCM / LIFO inventory adjustments	4.7
Volumes	3.3
Operating costs	2.7
Sales price	10.1
Nine months ended September 30, 2021 reported gross profit	$	56.5

The decrease in Performance Brands segment gross profit for the nine months ended September 30, 2021, as compared to the same period in 2020, was primarily driven by higher material and feedstock costs and supply chain challenges that resulted in a growing order backlog. The impact of this item was partially offset by higher volumes and sales prices as a result of our continued growth in the business for our TruFuel, Royal Purple, and Bel-Ray brands.

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General and administrative. General and administrative expenses increased $20.6 million, or 26.9%, to $97.3 million in the nine months ended September 30, 2021, from $76.7 million in the same period in 2020. The increase was primarily due to a $21.9 million increase in equity-based compensation related expenses, which was primarily the result of an increase in the Company’s unit price.

Interest expense. Interest expense increased $16.1 million, or 17.3%, to $109.3 million in the nine months ended September 30, 2021, from $93.2 million in the same period in 2020. The increase was primarily due to higher financing costs related to our Supply and Offtake Agreements in the current year period in comparison to the prior year comparative period.

Gain (loss) on derivative instruments. There was a $15.4 million loss on derivative instruments in the nine months ended September 30, 2021, compared to a $57.7 million gain in the same period in 2020. The $36.5 million realized gain on derivative instruments in the prior year comparative period was due to the settlement of our crack spread swaps and WCS crude oil basis swaps positions during the period. We recorded a realized gain of $1.1 million for the settlement of our WCS crude oil basis swaps position in the current year period. In addition, the unrealized loss on the inventory financing embedded derivative was $17.8 million in the current year period, compared to an unrealized gain of $9.2 million in the prior year comparative period.

Liquidity and Capital Resources

General

The following should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” included under Part II, Item 7 in our 2020 Annual Report. There have been no material changes in that information other than as discussed below. Also, see Note 8 — “Inventory Financing Agreements” and Note 9 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report for additional discussions related to our Supply and Offtake Agreements and our long-term debt.

Cash Flows from Operating, Investing and Financing Activities

We believe that we have sufficient liquid assets, cash flow from operations, borrowing capacity and adequate access to capital markets to meet our financial commitments, debt service obligations and anticipated capital expenditures for at least the next 12 months. We continue to seek to lower our operating costs, selling expenses and general and administrative expenses as a means to further improve our cash flow from operations with the objective of having our cash flow from operations support all of our capital expenditures and interest payments. However, we are subject to business and operational risks that could materially adversely affect our cash flows. A material decrease in our cash flow from operations including a significant, sudden decrease in crude oil prices would likely produce a corollary effect on our borrowing capacity under our revolving credit facility and potentially our ability to comply with the covenants under our revolving credit facility. A significant, sudden increase in crude oil prices, if sustained, would likely result in increased working capital requirements which would be funded by borrowings under our revolving credit facility. In addition, our cash flow from operations may be impacted by the timing of settlement of our derivative activities. Gains and losses from derivative instruments that do not qualify as cash flow hedges are recorded in unrealized gain (loss) on derivative instruments until settlement and will impact operating cash flow in the period settled.

The following table summarizes our primary sources and uses of cash in each of the periods presented:

	Nine Months Ended September 30,
	2021		2020
	(In millions)
Net cash provided by (used in) operating activities	$	(29.9)	$	64.9
Net cash used in investing activities	(34.2)		(37.2)
Net cash provided by (used in) financing activities	(34.5)		62.6
Net increase (decrease) in cash and cash equivalents	$	(98.6)	$	90.3

Operating Activities. Operating activities used cash of $29.9 million during the nine months ended September 30, 2021 compared to providing cash of $64.9 million during the same period in 2020. The change was impacted by an increase in net loss of $106.1 million, which was partially offset by a decrease in the cash required for working capital.

Investing Activities. Investing activities used cash of $34.2 million during the nine months ended September 30, 2021 compared to a use of cash of $37.2 million during the same period in 2020. The change is related to decreases in cash expenditures for additions to property, plant and equipment in the current year period relative to the prior year comparative period.

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Financing Activities. Financing activities used cash of $34.5 million in the nine months ended September 30, 2021 compared to providing cash of $62.6 million during the same period in 2020. The change is primarily due to a $160.0 million change resulting from lower borrowings on our revolving credit facility in the current year compared to the prior year, which was partially offset by a $70.0 million change due to an increase in net proceeds received from our inventory financing arrangements in the current year as compared to the prior year. In addition, the $70.0 million proceeds from our sale and leaseback transaction offset the repurchase of a portion of our 2022 Notes.

Capital Expenditures

Our property, plant and equipment capital expenditure requirements consist of capital improvement expenditures, replacement capital expenditures, environmental capital expenditures and turnaround capital expenditures. Capital improvement expenditures include the acquisition of assets to grow our business, facility expansions, or capital initiatives that reduce operating costs. Replacement capital expenditures replace worn out or obsolete equipment or parts. Environmental capital expenditures include asset additions to meet or exceed environmental and operating regulations. Turnaround capital expenditures represent capitalized costs associated with our periodic major maintenance and repairs.

The following table sets forth our capital improvement expenditures, replacement capital expenditures, environmental capital expenditures and turnaround capital expenditures in each of the periods shown (including capitalized interest):

	Nine Months Ended September 30,
	2021		2020
	(In millions)
Capital improvement expenditures	$	20.0	$	11.1
Replacement capital expenditures	11.4		20.2
Environmental capital expenditures	2.9		3.5
Turnaround capital expenditures	40.8		19.7
Total	$	75.1	$	54.5

2021 Capital Spending Forecast

We expect to incur capital expenditures of approximately $165.0 million to $175.0 million in 2021, which includes $70.0 million to $75.0 million on the Renewable Diesel project and $90.0 million to $100.0 million on sustaining, environmental, and small growth capital expenditures. The Renewable Diesel capital includes spending advanced from 2022 following early receipt of permits. We have also released equipment purchase orders ahead of schedule to mitigate the potential risk of being negatively impacted by global supply chain challenges. As announced last quarter, the sustaining capital includes approximately $30.0 million of Montana turnarounds that were advanced from 2022; our strategy is to level Montana site workload across 2021 and 2022 to manage scope and risk during this heavy construction period. We anticipate that our total capital expenditure requirements will be provided primarily through cash flow from operations, cash on hand, available borrowings under our revolving credit facility, Renewable Diesel partnership, or by accessing capital markets as necessary. If future capital expenditures require expenditures in excess of our then-current cash flow from operations and borrowing availability under our revolving credit facility, we may be required to issue debt or equity securities in public or private offerings or incur additional borrowings under bank credit facilities to meet those costs, if such options are available to us.

Debt and Credit Facilities

As of September 30, 2021, our primary debt and credit instruments consisted of the following:

•$600.0 million senior secured revolving credit facility maturing in February 2023 (“revolving credit facility”);

•$80.0 million of 7.625% Senior Notes due 2022 (“2022 Notes”);

•$325.0 million of 7.75% Senior Notes due 2023 (“2023 Notes”);

•$200.0 million of 9.25% Senior Secured First Lien Notes due 2024 (“2024 Secured Notes”); and

•$550.0 million of 11.00% Senior Notes due 2025 (“2025 Notes”).

We were in compliance with all covenants under the debt instruments in place as of September 30, 2021 and believe we have adequate liquidity to conduct our business.

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The borrowing base on our revolving credit facility increased from approximately $289.7 million as of September 30, 2020, to approximately $345.9 million at September 30, 2021, resulting in a corresponding increase in our borrowing availability from approximately $159.9 million at September 30, 2020, to approximately $269.9 million at September 30, 2021. Total liquidity, consisting of unrestricted cash and available funds under our revolving credit facility, increased from $269.3 million at September 30, 2020 to $280.7 million at September 30, 2021.

Inventory Financing

Please refer to Note 8 - “Inventory Financing Agreements” in Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for additional information regarding our Supply and Offtake Agreements.

Short-Term Liquidity

As of September 30, 2021, our principal sources of short-term liquidity were (i) $269.9 million of availability under our revolving credit facility, (ii) inventory financing agreements related to the Great Falls and Shreveport refineries and (iii) $10.8 million of cash on hand. Borrowings under our revolving credit facility can be used for, among other things, working capital, capital expenditures and other lawful partnership purposes including acquisitions. For additional information regarding our revolving credit facility, see Note 9 - “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report.

Long-Term Financing

In addition to our principal sources of short-term liquidity listed above, subject to market conditions, we may meet our cash requirements (other than distributions of Available Cash (as defined in our partnership agreement) to our common unitholders) through the issuance of long-term notes or additional common units.

From time to time, we issue long-term debt securities referred to as our senior notes. All of our outstanding senior notes, other than the 2024 Secured Notes, are unsecured obligations that rank equally with all of our other senior debt obligations to the extent they are unsecured. As of September 30, 2021 we had $80.0 million in 2022 Notes, $325.0 million in 2023 Notes, $200.0 million in 2024 Secured Notes, and $550.0 million in 2025 Notes outstanding. The 2024 Secured Notes and the related guarantees are secured by a first priority lien (subject to certain exceptions) on all the fixed assets that secure our obligations under the secured hedge agreements, as governed by the Collateral Trust Agreement, which governs how secured hedging counterparties and holders of the 2024 Secured Notes share collateral pledged as security for the payment obligations owed by us to the secured hedging counterparties under their respective master derivatives contracts and the holders of the 2024 Secured Notes. In addition, as of September 30, 2021, we had $66.4 million of other debt outstanding for the Shreveport terminal asset financing arrangement.

During the nine months ended September 30, 2021, we repurchased $70.0 million in aggregate principal amount of the 2022 Notes at a redemption price of par, plus accrued and unpaid interest to the redemption date of June 5, 2021.

To date, our debt balances have not adversely affected our operations, our ability to repay or refinance our indebtedness. Based on our historical record, we believe that our capital structure will continue to allow us to achieve our business objectives.

For additional information regarding our senior notes, please read Note 9 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report and Note 10 — “Long-Term Debt” in Part II, Item 8 “Financial Statements and Supplementary Data” of our 2020 Annual Report.

On February 12, 2021, we entered into a sale and leaseback transaction with Stonebriar Commercial Finance LLC (“Stonebriar”), whereby we sold and leased back certain of our fuels terminal assets at the Shreveport refinery. We received gross proceeds of $70.0 million from the sale, with the leaseback having a term of seven years. Please read Note 21 - “Subsequent Events” in Part II, Item 8 “Financial Statements and Supplementary Data” of our 2020 Annual Report for additional information.

Master Derivative Contracts and Collateral Trust Agreement

For additional discussion regarding our master derivative contracts and collateral trust agreement, see “Master Derivative Contracts and Collateral Trust Agreement” under Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2020 Annual Report.

Off-Balance Sheet Arrangements

We did not enter into any material off-balance sheet transactions during the three and nine months ended September 30, 2021.

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Critical Accounting Estimates

For additional discussion regarding our critical accounting estimates, see “Critical Accounting Estimates” under Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2020 Annual Report.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined in Rule 12b-2 under the Exchange Act. As a result, pursuant to Item 301(c) of Regulation S-K, we are not required to provide the information required by this item.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon the evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were not effective as of September 30, 2021, at the reasonable assurance level due to a material weakness in our internal control over financial reporting as described below.

Internal Control over Financial Reporting

As of September 30, 2021, the following material weakness existed:

•The untimely and insufficient operation of controls in the financial statement close process, including lack of timely account reconciliation, analysis and review related to all financial statement accounts.

This material weakness resulted from not having adequate automated and manual controls designed and in place and not achieving the intended operating effectiveness of those controls impacting all financial statement accounts and disclosures.

Given the material weakness that exists as of September 30, 2021, we concluded that our internal control over financial reporting remained ineffective as of September 30, 2021.

Remediation Efforts to Address Remaining Material Weakness

In order to remediate the remaining material weakness, the untimely and insufficient operation of controls in the financial statement close process, including lack of timely account reconciliation, analysis and review related to all financial statement accounts, we continue to take steps to improve our overall processes and controls.

Remediation activities include, but are not limited to the following:

•Reviewing, analyzing and properly documenting account reconciliations and our processes related to internal controls over financial reporting.

•Continuing to design and implement effective review and approval controls. These controls will address the accuracy and completeness of the data used in the performance of the respective controls.

We continue to progress in the execution of our remediation plan and are committed to continuing to review and improve our internal control processes and financial reporting controls and procedures. When fully implemented and operational, we believe the measures described above will remediate the control deficiencies that led to the remaining material weakness identified above and strengthen our internal controls over financial reporting. As we continue to evaluate and work to improve our internal controls over financial reporting, we may determine to take additional measures to address control deficiencies or modify certain activities of the remediation measures described above.

Changes in Internal Control over Financial Reporting

No changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended September 30, 2021, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II

Item 1. Legal Proceedings

We are not a party to, and our property is not the subject of, any pending legal proceedings other than ordinary routine litigation incidental to our business. Our operations are subject to a variety of risks and disputes normally incidental to our business. As a result, we may, at any given time, be a defendant in various legal proceedings and litigation arising in the ordinary course of business. The information provided under Note 7 — “Commitments and Contingencies” in Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” is incorporated herein by reference.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risks discussed in Part I, Item 1A “Risk Factors” in our 2020 Annual Report. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. There have been no material changes in the risk factors discussed in Part I, Item 1A “Risk Factors” in our 2020 Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

51

Item 6. Exhibits

Exhibit Number	Description
3.1	Certificate of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 filed with the Commission on October 7, 2005 (File No. 333-128880)).
3.2	Amended and Restated Limited Partnership Agreement of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 13, 2006 (File No. 000-51734)).
3.3	Amendment No. 1 to the First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on July 11, 2006 (File No. 000-51734)).
3.4	Amendment No. 2 to First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 18, 2008 (File No. 000-51734)).
3.5	Amendment No. 3 to First Amended and Restated Agreement of Limited Partnership of Calumet Specialty Products Partners, L.P. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on January 4, 2018 (File No. 000-51734)).
3.6	Certificate of Formation of Calumet GP, LLC (incorporated by reference to Exhibit 3.3 of Registrant’s Registration Statement on Form S-1 filed with the Commission on October 7, 2005 (File No. 333-128880)).
3.7	Amended and Restated Limited Liability Company Agreement of Calumet GP, LLC (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on February 13, 2006 (File No. 000-51734)).
31.1*	Sarbanes-Oxley Section 302 certification of Stephen P. Mawer.
31.2*	Sarbanes-Oxley Section 302 certification of L. Todd Borgmann.
32.1**	Section 1350 certification of Stephen P. Mawer and L. Todd Borgmann.
100.INS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL (included within the Exhibit 101 attachments)
*	Filed herewith.
**	Furnished herewith.

52

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
		By:	Calumet GP, LLC, its general partner
Date:	November 5, 2021	By:	/s/ L. Todd Borgmann
			L. Todd Borgmann
			Executive Vice President and Chief Financial Officer of Calumet GP, LLC
			(Authorized Person and Principal Financial Officer)

53

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Stephen P. Mawer, certify that:

1.I have reviewed this Quarterly Report of Calumet Specialty Products Partners, L.P. (the “registrant”) on Form 10-Q for the quarter ended September 30, 2021;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021	/s/ Stephen P. Mawer
	Stephen P. Mawer
	Chief Executive Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P.
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A) OF THE

SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, L. Todd Borgmann, certify that:

1.I have reviewed this Quarterly Report of Calumet Specialty Products Partners, L.P. (the “registrant”) on Form 10-Q for the quarter ended September 30, 2021;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2021	/s/ L. Todd Borgmann
	L. Todd Borgmann
	Executive Vice President and Chief Financial Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P.
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION OF

CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Calumet Specialty Products Partners, L.P. (the “Partnership”) on Form 10-Q for the quarter ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Stephen P. Mawer, Chief Executive Officer of Calumet GP, LLC, the general partner of the Partnership (the “General Partner”), and L. Todd Borgmann, Executive Vice President and Chief Financial Officer of Calumet GP, LLC, each certify that to his knowledge:

(a)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(b)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

November 5, 2021	/s/ Stephen P. Mawer
	Stephen P. Mawer
	Chief Executive Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P.
	(Principal Executive Officer)

November 5, 2021	/s/ L. Todd Borgmann
	L. Todd Borgmann
	Executive Vice President and Chief Financial Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P.
	(Principal Financial Officer)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 04, 2021
Document and Entity Information [Abstract]
Entity Registrant Name	Calumet Specialty Products Partners, L.P.
Entity Address, Address Line One	2780 Waterfront Parkway East Drive
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Indianapolis
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46214
City Area Code	317
Entity Information, Former Legal or Registered Name	None
Entity Incorporation, State or Country Code	DE
Entity Central Index Key	0001340122
Entity File Number	000-51734
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity Tax Identification Number	35-1811116
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Filer Category	Accelerated Filer
Local Phone Number	328-5660
Security Exchange Name	NASDAQ
Trading Symbol	CLMT
Title of 12(b) Security	Common units representing limited partner interests
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		78,676,262

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 10.8	$ 109.4
Accounts Receivable, after Allowance for Credit Loss	218.4	152.4
Accounts receivable, net:
Other	16.6	8.0
Total accounts receivable	235.0	160.4
Inventories	297.3	254.9
Prepaid expenses and other current assets	22.4	10.2
Total current assets	565.5	534.9
Property, plant and equipment, net	903.7	919.8
Other noncurrent assets, net	364.7	353.6
Total assets	1,833.9	1,808.3
Current liabilities:
Accounts payable	241.4	179.3
Accrued interest payable	45.8	31.7
Accrued salaries, wages and benefits	64.8	27.6
Obligations under inventory financing agreements	152.4	98.8
Current portion RINs Obligation	184.5	129.4
Other current liabilities	62.0	74.8
Current portion of long-term debt	88.0	2.9
Total current liabilities	838.9	544.5
Other long-term liabilities	67.9	73.0
Long-term RINs obligation, less current portion	55.9	0.0
Long-term debt, less current portion	1,171.4	1,319.4
Total liabilities	2,134.1	1,936.9
Partners’ capital (deficit):
Partners' Capital	(300.2)	(128.6)
Total liabilities and partners’ capital (deficit)	1,833.9	1,808.3
Limited Partner
Partners’ capital (deficit):
Partners' Capital	(293.5)	(125.3)
General Partner [Member]
Partners’ capital (deficit):
Partners' Capital	5.5	9.0
AOCI Attributable to Parent [Member]
Partners’ capital (deficit):
Partners' Capital	$ (12.2)	$ (12.3)

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Accounts Receivable, Allowance for Credit Loss	$ 1.2	$ 0.8
Long-term Debt and Lease Obligation	1,171.4	1,319.4
Partners' Capital	(300.2)	(128.6)
Current portion RINs Obligation	$ 184.5	$ 129.4
Limited Partner
Limited partners’ interest units issued (in shares)	78,676,262	78,062,346
Limited Partners' Capital Account, Units Outstanding	78,676,262	78,062,346
Partners' Capital	$ (293.5)	$ (125.3)

XML

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Sales	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3
Cost of sales	741.6	551.5	2,171.8	1,609.8
Gross profit	133.3	16.5	110.4	104.5
Operating costs and expenses:
Selling	12.4	11.2	40.0	37.1
General and administrative	30.9	29.7	97.3	76.7
Other Operating Income (Expense), Net	(3.3)	6.4	20.0	22.6
Operating income (loss)	93.3	(30.8)	(46.9)	(31.9)
Other income (expense):
Interest expense	(38.2)	(33.3)	(109.3)	(93.2)
Gain (loss) on derivative instruments	(3.3)	7.9	(15.4)	57.7
Other	(0.1)	(0.2)	(0.1)	(1.3)
Total other expense	(41.4)	(25.2)	(124.6)	(34.2)
Net income (loss) before income taxes	51.9	(56.0)	(171.5)	(66.1)
Income tax expense from continuing operations	0.4	0.1	1.5	0.8
Net loss	51.5	(56.1)	(173.0)	(66.9)
General partner’s interest in net loss	1.0	(1.1)	(3.5)	(1.3)
Net income (loss) available to limited partners	$ 50.5	$ (55.0)	$ (169.5)	$ (65.6)
Weighted Average Number of Shares Outstanding, Basic	78,924,380	78,743,083	78,831,988	78,602,651
Weighted average limited partner units outstanding:
Weighted Average Number of Shares Outstanding, Diluted	78,971,518	78,743,083	78,831,988	78,602,651
Limited partners’ interest	$ 0.64	$ (0.70)	$ (2.15)	$ (0.83)
Weighted Average Number of Shares Outstanding, Basic	78,924,380	78,743,083	78,831,988	78,602,651
Limited partners' interest basic net income (loss) per unit [Abstract]
Limited partners' interest	$ 0.64	$ (0.70)	$ (2.15)	$ (0.83)

XML

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net loss	$ 51.5	$ (56.1)	$ (173.0)	$ (66.9)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	0.0	0.0	0.0	(0.2)
Defined benefit pension and retiree health benefit plans	(0.1)	0.2	0.1	0.2
Total other comprehensive income (loss)	(0.1)	0.2	0.1	0.0
Comprehensive income (loss) attributable to partners’ capital (deficit)	51.4	(55.9)	(172.9)	(66.9)
General Partner [Member]
Net loss	1.0	(1.1)	(3.5)	(1.3)
Total other comprehensive income (loss)	0.0	0.0	0.0
Limited Partner
Net loss	50.5	(55.0)	(169.5)	(65.6)
Total other comprehensive income (loss)	0.0	0.0	0.0
AOCI Attributable to Parent [Member]
Net loss	0.0	0.0	0.0	$ 0.0
Total other comprehensive income (loss)	$ (0.1)	$ 0.2	$ 0.1

XML

Unaudited Condensed Consolidated Statements of Partners' Capital - USD ($) $ in Millions	Total	General Partner [Member]	Limited Partner [Member]	AOCI Attributable to Parent [Member]
Beginning of Period at Dec. 31, 2019	$ 21.6	$ 12.0	$ 20.2	$ (10.6)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.0
Net loss	(66.9)	(1.3)	(65.6)	0.0
Amortization of phantom units	1.0	0.0	1.0	0.0
Payment, Tax Withholding, Share-based Payment Arrangement	(0.5)	0.0	(0.5)	0.0
End of Period at Sep. 30, 2020	(44.8)	10.7	(44.9)	(10.6)
Beginning of Period at Jun. 30, 2020	10.9	11.8	9.9	(10.8)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.2	0.0	0.0	0.2
Net loss	(56.1)	(1.1)	(55.0)	0.0
Amortization of phantom units	0.2	0.0	0.2	0.0
End of Period at Sep. 30, 2020	(44.8)	10.7	(44.9)	(10.6)
Beginning of Period at Dec. 31, 2020	(128.6)	9.0	(125.3)	(12.3)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.1	0.0	0.0	0.1
Net loss	(173.0)	(3.5)	(169.5)	0.0
Amortization of phantom units	1.9	0.0	1.9	0.0
Payment, Tax Withholding, Share-based Payment Arrangement	(0.6)	0.0	(0.6)	0.0
End of Period at Sep. 30, 2021	(300.2)	5.5	(293.5)	(12.2)
Beginning of Period at Jun. 30, 2021	(351.7)	4.5	(344.1)	(12.1)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	(0.1)	0.0	0.0	(0.1)
Net loss	51.5	1.0	50.5	0.0
Amortization of phantom units	0.1	0.0	0.1	0.0
End of Period at Sep. 30, 2021	$ (300.2)	$ 5.5	$ (293.5)	$ (12.2)

XML

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities
Net loss	$ (173.0)	$ (66.9)
Adjustments to reconcile net loss to net cash used in operating activities:
Other non-cash activities	94.5	120.2
Changes in assets and liabilities	48.6	11.6
Net cash provided by (used in) operating activities	(29.9)	64.9
Investing activities
Additions to property, plant and equipment	(34.3)	(34.8)
Payments for (Proceeds from) Other Investing Activities	0.1	(2.4)
Net cash used in investing activities	(34.2)	(37.2)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from borrowings — revolving credit facility	868.1	895.9
Repayments of borrowings — revolving credit facility	(928.0)	(795.8)
Repayments of borrowings — senior notes	70.0	0.0
Proceeds from inventory financing agreements	724.1	584.8
Payments on inventory financing agreements	(689.4)	(620.1)
Proceeds from other financing obligations	70.0	31.4
other financing activities	(9.3)	(33.6)
Net cash provided by (used in) financing activities	(34.5)	62.6
Net increase (decrease) in cash and cash equivalents	(98.6)	90.3
Cash and cash equivalents at beginning of period	109.4	19.1
Cash and cash equivalents at end of period	10.8	109.4
Cash and cash equivalents	10.8	109.4
Supplemental disclosure of non-cash investing activities
Construction in Progress Expenditures Incurred but Not yet Paid	$ 25.7	$ 4.1

XML

Description of the Business

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of the Business

Description of the Business

Calumet Specialty Products Partners, L.P. (the “Company”) is a publicly traded Delaware limited partnership. Its common units are listed on the Nasdaq Global Select Market under the ticker symbol “CLMT.” The general partner of the Company is Calumet GP, LLC, a Delaware limited liability company. As of September 30, 2021, the Company had 78,676,262 limited partner common units and 1,605,636 general partner equivalent units outstanding. The general partner owns 2% of the Company and all of the incentive distribution rights (as defined in the Company’s partnership agreement), while the remaining 98% is owned by limited partners. The general partner employs the Company’s employees and the Company reimburses the general partner for certain of its expenses.

The Company manufactures, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Change in Accounting Policy

During the first quarter of fiscal 2021, the Company changed its method of accounting for shipping and handling costs, which are primarily costs paid to third-party shippers for transporting products to customers. Under the new method of accounting, the Company includes shipping costs in cost of sales, whereas previously, they were included in operating costs and expenses as a separate line item as transportation expense.

The Company believes that including these expenses in cost of sales is preferable, as it better aligns these costs with the related revenue in the gross profit calculation and is consistent with the practices of other industry peers. This change in accounting principle has been applied retrospectively, and the unaudited condensed consolidated statements of operations reflect the effect of this accounting principle change for all periods presented. This reclassification had no impact on net income (loss) before income taxes, net income (loss) attributable to limited partners, limited partners’ interest basic net income (loss) per unit, or limited partners’ interest diluted net income (loss) per unit. The condensed consolidated balance sheets, unaudited condensed consolidated statements of comprehensive income (loss), unaudited condensed consolidated statements of partners’ capital (deficit), and unaudited condensed consolidated statements of cash flows were not impacted by this accounting principle change.

The unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020 have been adjusted to reflect this change in accounting policy. The impact of the adjustment for the three and nine months ended September 30, 2020 was an increase of $28.1 million and $83.7 million, respectively, to cost of sales and a corresponding decrease to transportation expense in the unaudited condensed consolidated statements of operations.

Significant Accounting Policies

Summary of Significant Accounting Policies

Reclassifications

Certain amounts in the prior years’ unaudited condensed consolidated financial statements have been reclassified to conform to the current year presentation.

Renewable Identification Numbers (“RINs”) Obligation

The Company’s RINs obligation (“RINs Obligation”) is an estimated provision for the future purchase of RINs in order to satisfy the U.S. Environmental Protection Agency’s (“EPA”) requirement to blend renewable fuels into certain transportation fuel products pursuant to the Renewable Fuel Standard (“RFS”). A RIN is a 38-character number assigned to each physical gallon of renewable fuel produced in or imported into the United States. The EPA sets annual quotas for the percentage of renewable fuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is subject to those quotas. Compliance is demonstrated by tendering RINs to the EPA documenting that blending has been accomplished. To the extent the Company is unable to physically blend renewable fuels to satisfy the EPA requirement, it may purchase RINs in the open market to satisfy the annual quota.

The Company accounts for its current period RINs obligation by multiplying the quantity of RINs shortage (based on actual results) by the period end RINs spot price, which is recorded as a current and long-term RINs obligation liability in the condensed consolidated balance sheets. This current period liability is revalued at the end of each subsequent accounting period, which produces non-cash mark-to-market adjustments that are reflected in cost of sales in the unaudited condensed consolidated statements of operations (with the exception of RINs for compliance year 2019 related to the San Antonio refinery, which amount is reflected in other operating expense in the unaudited condensed consolidated statements of operations). RINs generated by blending in excess of the EPA percentages may be sold or held to offset future RINs Obligations. Any gains or losses from RINs sales are recorded in cost of sales in the unaudited condensed consolidated statements of operations. The liabilities associated with the Company’s RINs obligation are considered recurring fair value measurements. Please read Note 7 - “Commitments and Contingencies” for further information on the Company’s RINs obligation.

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Revenue Recognition Revenue Recognition

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Products

The Company manufactures, formulates, and markets a diversified slate of specialty branded products to customers in various consumer-facing and industrial markets. The Company also produces fuel and fuel related products, including gasoline, diesel, jet fuel, asphalt, and other fuels products. The Company also blends, packages and markets high-performance branded specialty products through its Royal Purple, Bel-Ray, and TruFuel brands.

The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer, or, in certain cases, upon receipt by the customer in accordance with contractual terms.

Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. The contract with the customer states the final terms of the sale, including the description, quantity and price of each product or service purchased. For fuel products, payment is typically due in full between 2 to 30 days of delivery or the start of the contract term, such that payment is typically collected 2 to 30 days subsequent to the satisfaction of performance obligations. For specialty products, payment is typically due in full between 30 to 90 days of delivery or the start of the contract term, such that payment is typically collected 30 to 90 days subsequent to the satisfaction of performance obligations. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The expected costs associated with a product assurance warranty continues to be recognized as expense when products are sold. The Company does not offer promised services that could be considered warranties that are sold separately or provide a service in addition to assurance that the related product complies with agreed upon specifications. The Company establishes provisions based on the methods described in ASC 606 for estimated returns and warranties as variable consideration when determining the transaction price.

Excise and Sales Taxes

The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities.

Shipping and Handling Costs

Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation.

Cost of Obtaining Contracts

The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less.

Contract Balances

Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606. The Company’s receivables, net of allowance for expected credit losses from contracts with customers as of September 30, 2021 and December 31, 2020 were $218.4 million and $152.4 million, respectively.

Transaction Price Allocated to Remaining Performance Obligations

The Company’s product sales are short-term in nature with a contract term of one year or less. The Company has utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. Additionally, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

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Inventories

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

The cost of inventory is recorded using the last-in, first-out (“LIFO”) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. In certain circumstances, the Company may decide not to replenish inventory for certain products or product lines during an interim period, in which case, the Company may record interim LIFO adjustments during that period. During the three and nine months ended September 30, 2021 and 2020, the Company recorded no activity (exclusive of lower of cost or market (“LCM”) adjustments) in cost of sales in the unaudited condensed consolidated statements of operations due to the permanent liquidation of inventory layers.

Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the LCM value. The replacement cost of these inventories, based on current market values, would have been $49.1 million higher and $6.7 million lower as of September 30, 2021 and December 31, 2020, respectively.

On March 31, 2017 and June 19, 2017, the Company sold inventory comprised of crude oil and refined products to Macquarie Energy North America Trading Inc. (“Macquarie”) under Supply and Offtake Agreements as described in Note 8 - “Inventory Financing Agreements” related to the Great Falls and Shreveport refineries, respectively.

Inventories consist of the following (in millions):

	September 30, 2021						December 31, 2020
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	48.5	$	23.0	$	71.5	$	30.8	$	11.5	$	42.3
Work in process	33.9		29.6		63.5		31.8		27.4		59.2
Finished goods	117.5		44.8		162.3		114.0		39.4		153.4
	$	199.9	$	97.4	$	297.3	$	176.6	$	78.3	$	254.9

(1)Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 8 - “Inventory Financing Agreements” for further information.

In addition, the use of the LIFO inventory method may result in increases or decreases to cost of sales in years that inventory volumes decline as the result of charging cost of sales with LIFO inventory costs generated in prior periods. In periods of rapidly declining prices, LIFO inventories may have to be written down to market value due to the higher costs assigned to LIFO layers in prior periods. During the three months ended September 30, 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $4.7 million due to the sale of inventory previously adjusted through the LCM valuation. During the three months ended September 30, 2020, the Company recorded an increase of $1.1 million in cost of sales in the unaudited condensed consolidated statements of operations as a result of declining market prices. During the nine months ended September 30, 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $45.1 million due to the sale of inventory previously adjusted through the LCM valuation. During the nine months ended September 30, 2020, the Company recorded an increase in cost of sales in the unaudited condensed consolidated statements of operations of $35.3 million as a result of declining market prices.

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Leases (Notes)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Lessee, Operating Leases

Leases

The Company has various operating and finance leases primarily for the use of land, storage tanks, railcars, equipment, precious metals and office facilities that have remaining lease terms of greater than one year to 18 years, some of which include options to extend the lease for up to 34 years, and others of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases as of September 30, 2021 and December 31, 2020, were as follows (in millions):

		September 30, 2021		December 31, 2020
Assets:	Classification:
Operating lease assets	Other noncurrent assets, net (1)	$	64.7	$	85.8
Finance lease assets	Property, plant and equipment, net (2)	4.4		4.0
Total leased assets		$	69.1	$	89.8
Liabilities:
Current
Operating	Other current liabilities (1)	$	22.8	$	41.4
Finance	Current portion of long-term debt	0.8		0.6
Non-current
Operating	Other long-term liabilities (1)	42.4		44.8
Finance	Long-term debt, less current portion	3.3		3.1
Total lease liabilities		$	69.3	$	89.9

(1)In the third quarter of 2021, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $4.4 million.

(2)Finance lease assets are recorded net of accumulated amortization of $3.9 million and $3.4 million as of September 30, 2021 and December 31, 2020, respectively.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three and nine months ended September 30, 2021 and 2020 were as follows (in millions).

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Costs:	Classification:	2021		2020		2021		2020
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	11.9	$	10.3	$	35.5	$	36.4
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.9		1.7		5.9		6.9
Variable operating lease cost (2)	Cost of Sales; SG&A Expenses	7.1		0.4		13.5		1.7
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.2		0.1		0.5		0.4
Interest on lease liabilities	Interest expense	0.1		0.1		0.3		0.3
Total lease cost		$	21.2	$	12.6	$	55.7	$	45.7

(1)The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

(2)The Company’s railcar leases typically include a mileage limit the railcar can travel over the life of the lease. For any mileage incurred over this limit, the Company is obligated to pay an agreed upon dollar value for each mile that is traveled over the limit.

As of September 30, 2021, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions):

Maturity of Lease Liabilities	Operating Leases (1)		Finance Leases      (2)		Total
2021	$	11.8	$	0.3	$	12.1
2022	18.6		1.0		19.6
2023	14.8		1.0		15.8
2024	10.5		1.0		11.5
2025	7.4		0.7		8.1
Thereafter	13.0		0.9		13.9
Total	$	76.1	$	4.9	$	81.0
Less: Interest	10.9		0.8		11.7
Present value of lease liabilities	$	65.2	$	4.1	$	69.3
Less obligations due within one year	22.8		0.8		23.6
Long-term lease obligation	$	42.4	$	3.3	$	45.7

(1)As of September 30, 2021, the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2021.

(2)As of September 30, 2021, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2021.

Weighted-Average Lease Term and Discount Rate

The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases were as follows:

	September 30, 2021		December 31, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	4.6		3.8
Finance leases	5.0		5.4
Weighted-average discount rate:
Operating leases	6.8	%	7.3	%
Finance leases	7.3	%	8.3	%

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

From time to time, the Company is a party to certain claims and litigation incidental to its business, including claims made by various taxation and regulatory authorities, such as the Internal Revenue Service, the EPA and the U.S. Occupational Safety and Health Administration (“OSHA”), as well as various state environmental regulatory bodies and state and local departments of revenue, as the result of audits or reviews of the Company’s business. In addition, the Company has property, business interruption, general liability and various other insurance policies that may result in certain losses or expenditures being reimbursed to the Company.

Environmental

The Company conducts crude oil and specialty hydrocarbon refining, blending and terminal operations and such activities are subject to stringent federal, regional, state and local laws and regulations governing worker health and safety, the discharge of materials into the environment and environmental protection. These laws and regulations impose obligations that are applicable to the Company’s operations, such as requiring the acquisition of permits to conduct regulated activities, restricting the manner in which the Company may release materials into the environment, requiring remedial activities or capital expenditures to mitigate pollution from former or current operations, requiring the application of specific health and safety criteria addressing worker protection and imposing substantial liabilities for pollution resulting from its operations. Failure to comply with these laws and regulations may result in the assessment of sanctions, including administrative, civil and criminal penalties; the imposition of investigatory, remedial or corrective action obligations or the incurrence of capital expenditures; the occurrence of delays in the permitting, development or expansion of projects and the issuance of injunctive relief limiting or prohibiting Company activities. Moreover, certain of these laws impose joint and several, strict liability for costs required to remediate and restore sites where petroleum hydrocarbons, wastes or other materials have been released or disposed. In addition, new laws and regulations, new interpretations of existing laws and regulations, increased governmental enforcement or other developments, some of which legal requirements are discussed below, could significantly increase the Company’s operational or compliance expenditures.

Remediation of subsurface contamination is in process at certain of the Company’s refinery sites and is being overseen by the appropriate state agencies. Based on current investigative and remedial activities, the Company believes that the soil and groundwater contamination at these refineries can be controlled or remediated without having a material adverse effect on the Company’s financial condition. However, such costs are often unpredictable and, therefore, there can be no assurance that the future costs will not become material.

Renewable Identification Numbers Obligation

The RFS allows small refineries to apply at any time for a Small Refinery Exemption (“SRE”) from the renewable blending requirements, and Calumet had applied in respect of calendar 2019 and 2020 compliance years. The EPA has not acted on 2019 and 2020 SRE applications. On January 19, 2021, the Company filed a lawsuit against Mr. Andrew Wheeler, Administrator of the EPA, in federal court in the Western District of Louisiana and in the District of Montana seeking an order that the EPA cannot enforce the RINs compliance deadline until the EPA has taken action on the Company’s hardship exemption applications. Subsequent to the Company filing those lawsuits, EPA extended the deadlines for 2019 RFS compliance to November 30, 2021 and for 2020 RFS compliance to January 31, 2022, whereupon, on April 22, 2021, the Company and EPA agreed to place the two lawsuits in abeyance until November 1, 2021. The Company is now actively pursuing those lawsuits.

The Company continues to anticipate that RFS compliance may continue to result in a significant expense for the Specialty Products and Solutions and Montana/Renewables segments. If legal or regulatory changes occur that have the effect of increasing the RINs Obligation, increasing the market price of RINs, or eliminating or narrowing the availability of SRE, the Company could be required to purchase additional RINs in the open market, which may materially increase the costs related to RFS compliance and could have a material adverse effect on the results of operations and liquidity.

As of September 30, 2021 and December 31, 2020, the Company had a RINs Obligation recorded on the condensed consolidated balance sheets of $240.4 million and $129.4 million, respectively. Please read Note 3 - “Summary of Significant Accounting Policies” for additional information.

Occupational Health and Safety

The Company is subject to various laws and regulations relating to occupational health and safety, including the federal Occupational Safety and Health Act, as amended, and comparable state laws. These laws and regulations strictly govern the protection of the health and safety of employees. In addition, OSHA’s hazard communication standard, the EPA’s community right-to-know regulations under Title III of the federal Comprehensive Environmental Response, Compensation and Liability Act, as amended, and similar state statutes require the Company to maintain information about hazardous materials used or produced in the Company’s operations and provide this information to employees, contractors, state and local government authorities and customers. The Company maintains safety and training programs as part of its ongoing efforts to promote compliance with applicable laws and regulations. The Company conducts periodic audits of process safety management systems at each of its locations subject to this standard. The Company’s compliance with applicable health and safety laws and regulations has required, and continues to require, substantial expenditures. Changes in occupational safety and health laws and regulations or a finding of non-compliance with current laws and regulations could result in additional capital expenditures or operating expenses, as well as civil penalties and, in the event of a serious injury or fatality, criminal charges.

Other Matters, Claims and Legal Proceedings

The Company is subject to matters, claims and litigation incidental to its business. The Company has recorded accruals with respect to certain of its matters, claims and litigation where appropriate, that are reflected in the unaudited condensed consolidated financial statements but are not individually considered material. For other matters, claims and litigation, the Company has not recorded accruals because it has not yet determined that a loss is probable or because the amount of loss cannot be reasonably estimated. While the ultimate outcome of matters, claims and litigation currently pending cannot be determined, the Company currently does not expect these outcomes, individually or in the aggregate (including matters for which the Company has recorded accruals), to have a material adverse effect on its financial position, results of operations or cash flows. The outcome of any matter, claim or litigation is inherently uncertain, however, and if decided adversely to the Company, or if the Company determines that settlement of particular litigation is appropriate, the Company may be subject to liability that could have a material adverse effect on its financial position, results of operations or cash flows.

Standby Letters of Credit

The Company has agreements with various financial institutions for standby letters of credit, which have been issued primarily to vendors. As of September 30, 2021 and December 31, 2020, the Company had outstanding standby letters of credit of $27.9 million and $23.7 million, respectively, under its senior secured revolving credit facility (the “revolving credit facility”). Please read Note 9 - “Long-Term Debt” for additional information regarding the Company’s revolving credit facility. At September 30, 2021 and December 31, 2020, the maximum amount of letters of credit the Company could issue under its revolving credit facility was subject to borrowing base limitations, with a maximum letter of credit sublimit equal to $300.0 million, which may be increased with the consent of the Agent (as defined in the Credit Agreement) to 90% of revolver commitments then in effect ($600.0 million at September 30, 2021 and December 31, 2020).

Throughput Contract

Prior to 2020, the Company entered into a long-term agreement to transport crude oil at a minimum of 5,000 bpd through a pipeline, which commenced service in the second quarter of 2020. The agreement also contains a capital recovery charge that increases 2% per annum. This agreement is for seven years.

As of September 30, 2021, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2021	$	1.0
2022	3.9
2023	3.9
2024	4.0
2025	4.0
Thereafter	6.0
Total (1)	$	22.8

(1)As of September 30, 2021, the estimated minimum payments for the unconditional purchase commitments have been accrued and are included in other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. This liability was accrued due to the fact that the contract was entered into to supply crude to a divested facility.

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Inventory Financing Agreement

9 Months Ended

Sep. 30, 2021

Other Commitments [Abstract]

Inventory Financing Agreement

Inventory Financing Agreements

The Company entered into several agreements with Macquarie to support the operations of the Great Falls refinery and the Shreveport refinery (as amended, the “Supply and Offtake Agreements”), which each have an expiration date of June 30, 2023.

The Supply and Offtake Agreements allow the Company to purchase crude oil from Macquarie or one of its affiliates. Per the Supply and Offtake Agreements, Macquarie will provide up to 30,000 barrels per day of crude oil to the Great Falls refinery and 60,000 barrels per day of crude oil to the Shreveport refinery.

While title to certain inventories will reside with Macquarie, the Supply and Offtake Agreements are accounted for by the Company similar to a product financing arrangement; therefore, the inventories sold to Macquarie will continue to be included in the Company’s condensed consolidated balance sheets until processed and sold to a third party.

For the three months ended September 30, 2021 and 2020, the Company incurred an expense of $5.5 million and $1.2 million, respectively, for financing costs related to the Supply and Offtake Agreements, which are included in interest expense in the Company’s unaudited condensed consolidated statements of operations. For the nine months ended September 30, 2021 and 2020, the Company incurred an expense of $10.3 million and received a $2.0 million benefit, respectively, for financing costs related to the Supply and Offtake Agreements, which are included in interest expense in the Company’s unaudited condensed consolidated statements of operations.

The Company has provided cash collateral of $14.6 million related to the initial purchase of the Great Falls and Shreveport inventory to cover credit risk for future crude oil deliveries and potential liquidation risk if Macquarie exercises its rights and sells the inventory to third parties. The collateral was recorded as a reduction to the obligations.

The Supply and Offtake Agreements also include a deferred payment arrangement (“Deferred Payment Arrangement”) whereby the Company can defer payments on just-in-time crude oil purchases from Macquarie owed under the agreements up to the value of the collateral provided (up to 90% of the collateral inventory). The deferred amounts under the Deferred Payment Arrangement bear interest at a rate equal to the London Interbank Offered Rate (“LIBOR”) plus 3.25% per annum for both Shreveport and Great Falls. Amounts outstanding under the Deferred Payment Arrangement are included in obligations under inventory financing agreements in the Company’s condensed consolidated balance sheets. Changes in the amount outstanding under the Deferred Payment Arrangement are included within cash flows from financing activities in the Company’s unaudited condensed consolidated statements of cash flows. As of September 30, 2021 and December 31, 2020, the Company had $26.4 million and $15.0 million of deferred payments outstanding, respectively. In addition to the Deferred Payment Arrangement, Macquarie has advanced the Company an additional $5.0 million which remained outstanding as of September 30, 2021.

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Long-Term Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consisted of the following (in millions):

	September 30, 2021		December 31, 2020
Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rates of 2.4% for the nine months ended September 30, 2021 and the year ended December 31, 2020.	$	48.1	$	108.0
Borrowings under the 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.3% and 8.1% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively. (1)	80.1		150.6
Borrowings under the 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.3% and 8.1% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.	325.0		325.0
Borrowings under the 2024 Secured Notes, interest at a fixed rate of 9.25%, interest payments semiannually, borrowings due July 2024, effective interest rate of 9.4% for the nine months ended September 30, 2021 and the year ended December 31, 2020.	200.0		200.0
Borrowings under the 2025 Notes, interest at a fixed rate of 11.0%, interest payments semiannually, borrowings due April 2025, effective interest rate of 11.4% and 11.3% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.	550.0		550.0
Shreveport terminal asset financing arrangement	66.4		—
Other	1.1		2.3
Finance lease obligations, at various interest rates, interest and principal payments monthly through June 2028	4.1		3.7
Less unamortized debt issuance costs (2)	(11.4)		(14.2)
Less unamortized discounts	(4.0)		(3.1)
Total debt	$	1,259.4	$	1,322.3
Less current portion of long-term debt	88.0		2.9
Total long-term debt	$	1,171.4	$	1,319.4

(1)The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.1 million and $0.6 million as of September 30, 2021 and December 31, 2020, respectively.

(2)Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $22.7 million and $20.5 million at September 30, 2021 and December 31, 2020, respectively.

7.625% Senior Notes due 2022 (the “2022 Notes”)

During the nine months ended September 30, 2021, the Company repurchased $70.0 million aggregate principal amount of its 2022 Notes at a redemption price of par, plus accrued and unpaid interest to the redemption date of June 5, 2021. In conjunction with the repurchase during the nine months ended September 30, 2021, the Company recorded a loss from debt extinguishment of $0.4 million.

Senior Notes

The indentures governing the 2022 Notes, the 7.75% Senior Notes due 2023 (“2023 Notes”), the 9.25% Senior Secured First Lien Notes due 2024 (“2024 Secured Notes”) and the 11.00% Senior Notes due 2025 (“2025 Notes”) and, together with the 2022 Notes, 2023 Notes and 2024 Secured Notes, the “Senior Notes” contain covenants that, among other things, restrict the Company’s ability and the ability of certain of the Company’s subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase the Company’s common units or redeem or repurchase its subordinated debt; (iii) make investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from the Company’s restricted subsidiaries to the Company; (vii) consolidate, merge or transfer all or substantially all of the Company’s assets; (viii) engage in transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants are subject to important exceptions and qualifications. At any time when the Senior Notes are rated investment grade by either Moody’s Investors Service, Inc. (“Moody’s”) or S&P Global Ratings (“S&P”) and no Default or Event of Default, each as defined in the indentures governing the Senior Notes, has occurred and is continuing, many of these covenants will be suspended. As of September 30, 2021, the Company was in compliance with all covenants under the indentures governing the Senior Notes.

Third Amended and Restated Senior Secured Revolving Credit Facility

On February 23, 2018, the Company entered into the Third Amended and Restated Credit Agreement (as amended, the “Credit Agreement”) governing its senior secured revolving credit facility maturing in February 2023, which provides maximum availability of credit under the revolving credit facility of $600.0 million, subject to borrowing base limitations, and includes a $500.0 million incremental uncommitted expansion feature. Lenders under the revolving credit facility have a first priority lien on, among other things, the Company’s accounts receivable and inventory and substantially all of its cash (collectively, the “Credit Agreement Collateral”). In September 2019, the borrowing base was expanded by $99.6 million by adding the fixed assets of the Company’s Great Falls, MT refinery as collateral under the Credit Agreement. The $99.6 million expansion amortizes to zero on a straight-line basis over ten quarters starting in the first quarter of 2020.

The borrowing capacity at September 30, 2021, under the revolving credit facility was approximately $345.9 million. As of September 30, 2021, the Company had $48.1 million of outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $27.9 million, leaving approximately $269.9 million of unused capacity.

The revolving credit facility contains various covenants that limit, among other things, the Company’s ability to: incur indebtedness; grant liens; dispose of certain assets; make certain acquisitions and investments; redeem or prepay other debt or make other restricted payments such as distributions to unitholders; enter into transactions with affiliates; and enter into a merger, consolidation or sale of assets. Further, the revolving credit facility contains one springing financial covenant which provides that only if the Company’s availability to borrow loans under the revolving credit facility falls below the greater of (i) 10% of the Borrowing Base (as defined in the Credit Agreement) then in effect, or 15% while the Great Falls, MT refinery is included in the Borrowing Base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.0 to 1.0. As of September 30, 2021, the Company was in compliance with all covenants under the revolving credit facility.

Maturities of Long-Term Debt

As of September 30, 2021, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2021	$	2.8
2022	87.5
2023	381.3
2024	208.9
2025	559.3
Thereafter	34.9
Total	$	1,274.7

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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

In accordance with ASC 820, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following:

•Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities

•Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable

•Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions

In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment.

Recurring Fair Value Measurements

Derivative Assets and Liabilities

Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange. Substantially all of the Company’s derivative instruments are with counterparties that have long-term credit ratings of at least A3 and BBB+ by Moody’s and S&P, respectively.

Commodity derivative instruments are measured at fair value using a market approach. To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk-free rate of return and contract maturity. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the counterparty through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date. As a result of applying the applicable CVA at September 30, 2021 and December 31, 2020, the Company’s net assets and net liabilities changed, in each case, by an immaterial amount.

Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the counterparties and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds. Please read Note 10 - “Derivatives” for further information on derivative instruments.

Pension Assets

Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements. At September 30, 2021 and December 31, 2020, the Company’s investments associated with its pension plan consisted of (i) cash and cash equivalents, (ii) fixed income bond funds, (iii) mutual equity funds, and (iv) mutual balanced funds. The fixed income bond funds, mutual equity funds, and mutual balanced funds are measured at fair value using a market approach based on quoted prices from national securities exchanges and are categorized in Level 1 of the fair value hierarchy.

Liability Awards

Unit-based compensation liability awards are awards that are currently expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date.

Renewable Identification Numbers Obligation

The Company’s RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on prices obtained from an independent pricing service. Please read Note 3 - “Summary of Significant Accounting Policies” for further information on the Company’s RINs Obligation.

Precious Metals Obligations

The fair value of precious metals obligations is based upon unadjusted exchange-quoted prices and is, therefore, classified within Level 1 of the fair value hierarchy.

Hierarchy of Recurring Fair Value Measurements

The Company’s recurring assets and liabilities measured at fair value were as follows (in millions):

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Pension plan investments	$	34.3	$	—	$	—	$	34.3	$	34.4	$	—	$	—	$	34.4
Total recurring assets at fair value	$	34.3	$	—	$	—	$	34.3	$	34.4	$	—	$	—	$	34.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(20.0)	$	(20.0)	$	—	$	—	$	(2.2)	$	(2.2)
WCS crude oil basis swaps	—		—		—		—		—		—		(1.3)		(1.3)
Total derivative liabilities	$	—	$	—	$	(20.0)	$	(20.0)	$	—	$	—	$	(3.5)	$	(3.5)
RINs obligation	—		(240.4)		—		(240.4)		—		(129.4)		—		(129.4)
Precious metals obligations	(7.1)		—		—		(7.1)		(7.9)		—		—		(7.9)
Liability awards	(36.9)		—		—		(36.9)		(14.2)		—		—		(14.2)
Total recurring liabilities at fair value	$	(44.0)	$	(240.4)	$	(20.0)	$	(304.4)	$	(22.1)	$	(129.4)	$	(3.5)	$	(155.0)

The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions):

	Nine Months Ended September 30,
	2021		2020
Fair value at January 1,	$	(3.5)	$	(6.3)
Realized gain on derivative instruments	1.1		36.5
Unrealized gain (loss) on derivative instruments	(16.5)		21.2
Settlements	(1.1)		(36.5)
Fair value at September 30,	$	(20.0)	$	14.9
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	(16.5)	$	21.2

Nonrecurring Fair Value Measurements

Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The Company assesses goodwill for impairment annually and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements.

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property, plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements.

Estimated Fair Value of Financial Instruments

Cash and cash equivalents

The carrying value of cash and cash equivalents are each considered to be representative of their fair value.

Debt

The estimated fair value of long-term debt at September 30, 2021 and December 31, 2020, consists primarily of senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s senior notes and secured notes defined as Level 2 was based upon quoted prices for identical or similar liabilities in markets that are not active. The carrying value of borrowings, if any, under the Company’s revolving credit facility, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. Please read Note 9 - “Long-Term Debt” for further information on long-term debt.

The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost were as follows (in millions):

		September 30, 2021				December 31, 2020
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2022 Notes and 2023 Notes	1	$	403.4	$	401.7	$	468.6	$	471.9
2024 Secured Notes and 2025 Notes	2	$	816.0	$	741.4	$	780.8	$	739.6
Revolving credit facility	3	$	48.1	$	46.1	$	108.0	$	104.8
Shreveport terminal asset financing arrangement	3	$	66.4	$	65.0	$	—	$	—
Finance leases and other obligations	3	$	5.2	$	5.2	$	6.0	$	6.0

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Earnings Per Unit

9 Months Ended

Sep. 30, 2021

Earnings Per Unit [Abstract]

Earnings Per Unit

Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per limited partner unit (in millions, except unit and per unit data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator for basic and diluted earnings per limited partner unit:
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Less:
General partner’s interest in net income (loss)	1.0		(1.1)		(3.5)		(1.3)
Net income (loss) attributable to limited partners	$	50.5	$	(55.0)	$	(169.5)	$	(65.6)
Denominator for earnings per limited partner unit:
Basic weighted average limited partner units outstanding	78,924,380		78,743,083		78,831,988		78,602,651
Effect of dilutive securities:
Incremental Units	47,138		—		—		—
Diluted weighted average limited partner units outstanding (1)	78,971,518		78,743,083		78,831,988		78,602,651
Limited partners’ interest basic net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)
Limited partners’ interest diluted net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)

(1)Total diluted weighted average limited partner units outstanding excludes a de-minimis amount of potentially dilutive phantom units which would have been anti-dilutive for the three months ended September 30, 2020 and for the nine months ended September 30, 2021 and 2020

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Segments and Related Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segments and Related Information

Segments and Related Information

Segment Reporting

The Company determines its reportable segments based on how the business is managed internally for the products sold to customers, including how results are reviewed and resources are allocated by the chief operating decision maker (“CODM”). Effective January 1, 2021, the Company reorganized its business segments as a result of a change in how the CODM allocates resources, makes operating decisions and assesses the performance of its business. As a result, as of January 1, 2021, the Company’s operations are managed by the CODM using the following reportable segments:

•Specialty Products and Solutions. The Specialty Products and Solutions segment consists of our customer-focused solutions and formulations businesses, covering multiple specialty product lines, anchored by our unique integrated complex in North West Louisiana.

•Montana/Renewables. The Montana/Renewables segment is composed of our Great Falls refinery and dual-train energy transition project.

•Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands.

•Corporate. The Corporate segment primarily consists of general and administrative expenses not allocated to the Montana/Renewables, Specialty Products and Solutions, or Performance Brands segments.

Segment information presented herein reflects the impact of this reorganization for all periods presented.

During the first quarter of 2021, the CODM changed the definition and calculation of Adjusted EBITDA to exclude RINs mark-to-market adjustments (see item (j) below). The Company’s RINs liability is calculated by multiplying the RINs shortage (based on actual results) by the period end spot price and is subsequently revalued as of the last day of each accounting period. The resulting non-cash adjustments are included in cost of sales in the statement of operations, with the exception of RINs for the 2019 compliance year related to the San Antonio refinery, which are included in other operating expense. The Company believes that this revised definition and calculation better reflects the performance of the Company’s business segments including cash flows because it excludes these non-cash fluctuations. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 - “Summary of Significant Accounting Policies,” of the Company’s 2020 Annual Report on Form 10-K, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for inter-segment sales and transfers using market-based transfer pricing. The Company will periodically refine its expense allocation methodology for its segment reporting as more specific information becomes available and the industry or market changes. In addition, the accounting policies of the reporting segments for shipping and handling costs, which are primarily costs paid to third-party shippers for transporting products to customers, are the same as that described in this report in Note 2 - “Change in Accounting Policy.” The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark-to-market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) 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); (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; and (k) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

Reportable segment information for the three months ended September 30, 2021 and 2020, is as follows (in millions):

Three Months Ended September 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	583.5	$	63.0	$	228.4	$	—	$	—	$	874.9
Inter-segment sales	5.1		—		—		—		(5.1)		—
Total sales	$	588.6	$	63.0	$	228.4	$	—	$	(5.1)	$	874.9
Adjusted EBITDA	$	46.3	$	6.8	$	24.4	$	(18.7)	$	—	$	58.8
Reconciling items to net income:
Depreciation and amortization	16.7		3.4		8.5		1.9		—		30.5
LCM / LIFO gain	(0.8)		(2.9)		(1.0)		—		—		(4.7)
Gain on sale of business, net	(0.2)		—		—		—		—		(0.2)
Interest expense	6.0		0.2		1.9		30.1		—		38.2
Unrealized loss on derivatives	2.8		—		0.5		—		—		3.3
RINs mark-to-market gain	(42.8)		—		(24.1)		—		—		(66.9)
Equity-based compensation and other items											6.7
Income tax expense											0.4
Net income											$	51.5
Capital expenditures	$	8.5	$	0.9	$	16.4	$	—	$	—	$	25.8
PP&E, net	$	382.4	$	34.0	$	476.7	$	10.6	$	—	$	903.7

Three Months Ended September 30, 2020	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	366.2	$	60.9	$	140.9	$	—	$	—	$	568.0
Inter-segment sales	3.3		0.1		—		—		(3.4)		—
Total sales	$	369.5	$	61.0	$	140.9	$	—	$	(3.4)	$	568.0
Adjusted EBITDA	$	23.2	$	18.9	$	9.7	$	(17.1)	$	—	$	34.7
Reconciling items to net loss:
Depreciation and amortization	14.8		4.0		9.5		1.9		—		30.2
LCM / LIFO (gain) loss	0.5		1.3		(0.7)		—		—		1.1
Interest expense	1.3		0.1		0.8		31.1		—		33.3
Unrealized loss on derivatives	8.2		—		1.0		—		—		9.2
RINs mark-to-market loss	6.4		—		2.9		—		—		9.3
Other non-recurring expenses											5.5
Equity-based compensation and other items											2.1
Income tax expense											0.1
Net loss											$	(56.1)
Capital expenditures	$	6.3	$	0.5	$	3.4	$	0.1	$	—	$	10.3
PP&E, net	$	412.3	$	34.5	$	468.5	$	17.6	$	—	$	932.9

Nine Months Ended September 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,507.4	$	194.4	$	580.4	$	—	$	—	$	2,282.2
Inter-segment sales	13.2		—		—		—		(13.2)		—
Total sales	$	1,520.6	$	194.4	$	580.4	$	—	$	(13.2)	$	2,282.2
Adjusted EBITDA	$	75.9	$	30.1	$	35.2	$	(55.5)	$	—	$	85.7
Reconciling items to net loss:
Depreciation and amortization	49.3		10.2		25.5		5.9		—		90.9
LCM / LIFO gain	(29.7)		(3.4)		(12.0)		—		—		(45.1)
Loss on impairment and disposal of assets	1.8		—		0.1		—		—		1.9
Gain on sale of business, net	(0.2)		—		—		—		—		(0.2)
Interest expense	12.7		0.3		3.5		92.8		—		109.3
Debt extinguishment costs	—		—		—		0.4		—		0.4
Unrealized loss on derivatives	14.5		—		2.0		—		—		16.5
RINs mark-to-market loss	38.8		—		17.5		—		—		56.3
Other non-recurring expenses											2.8
Equity-based compensation and other items											24.4
Income tax expense											1.5
Net loss											$	(173.0)
Capital expenditures	$	45.4	$	2.0	$	27.7	$	—	$	—	$	75.1
PP&E, net	$	382.4	$	34.0	$	476.7	$	10.6	$	—	$	903.7

Nine Months Ended September 30, 2020	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,156.6	$	177.3	$	380.4	$	—	$	—	$	1,714.3
Inter-segment sales	9.7		0.3		—		—		(10.0)		—
Total sales	$	1,166.3	$	177.6	$	380.4	$	—	$	(10.0)	$	1,714.3
Adjusted EBITDA	$	125.6	$	47.1	$	64.9	$	(54.1)	$	—	$	183.5
Reconciling items to net loss:
Depreciation and amortization	45.6		12.0		28.2		5.7		—		91.5
LCM / LIFO loss	31.2		1.3		3.0		—		—		35.5
Loss on impairment and disposal of assets	0.2		1.4		—		5.1		—		6.7
Interest (benefit) expense	(0.1)		0.3		0.1		92.9		—		93.2
Unrealized gain on derivatives	(11.7)		—		(9.5)		—		—		(21.2)
RINs mark-to-market loss	24.3		—		9.1		—		—		33.4
Other non-recurring expenses											4.3
Equity-based compensation and other items											6.2
Income tax expense											0.8
Net loss											$	(66.9)
Capital expenditures	$	42.8	$	1.3	$	9.9	$	0.5	$	—	$	54.5
PP&E, net	$	412.3	$	34.5	$	468.5	$	17.6	$	—	$	932.9

Geographic Information

International sales accounted for less than ten percent of consolidated sales in the three months ended September 30, 2021 and greater than ten percent of consolidated sales in the three months ended September 30, 2020. International sales accounted for less than ten percent of consolidated sales in each of the nine months ended September 30, 2021 and 2020.

Product Information

The Company offers specialty, fuels, and packaged products primarily in categories consisting of lubricating oils, solvents, waxes, gasoline, diesel, jet fuel, asphalt, heavy fuel oils, high-performance branded specialty products, and other specialty and fuels products. The following table sets forth the major product category sales for the Company’s business segments for the three months ended September 30, 2021 and 2020 (dollars in millions):

	Three Months Ended September 30,
	2021				2020
Specialty Products and Solutions:
Lubricating oils	$	192.0	21.9	%	$	122.5	21.6	%
Solvents	81.7		9.3	%	54.6		9.6	%
Waxes	40.6		4.7	%	33.8		6.0	%
Fuels, asphalt and other by-products	269.2		30.8	%	155.3		27.3	%
Total	$	583.5	66.7	%	$	366.2	64.5	%
Montana/Renewables:
Gasoline	$	53.9	6.2	%	$	38.8	6.8	%
Diesel	92.6		10.5	%	50.9		9.0	%
Jet fuel	8.6		1.0	%	3.7		0.6	%
Asphalt, heavy fuel oils and other	73.3		8.4	%	47.5		8.4	%
Total	$	228.4	26.1	%	$	140.9	24.8	%
Performance Brands:	$	63.0	7.2	%	$	60.9	10.7	%
Consolidated sales	$	874.9	100.0	%	$	568.0	100.0	%

The following table sets forth the major product category sales for the Company’s business segments for the nine months ended September 30, 2021 and 2020 (dollars in millions):

	Nine Months Ended September 30,
	2021				2020
Specialty Products and Solutions:
Lubricating oils	$	482.2	21.1	%	$	352.5	20.6	%
Solvents	223.0		9.8	%	179.0		10.4	%
Waxes	110.1		4.9	%	92.2		5.4	%
Fuels, asphalt and other by-products	692.1		30.3	%	532.9		31.1	%
Total	$	1,507.4	66.1	%	$	1,156.6	67.5	%
Montana/Renewables:
Gasoline	$	137.4	6.0	%	$	103.0	6.0	%
Diesel	241.7		10.6	%	150.3		8.8	%
Jet fuel	21.0		0.9	%	11.7		0.7	%
Asphalt, heavy fuel oils and other	180.3		7.9	%	115.4		6.7	%
Total	$	580.4	25.4	%	$	380.4	22.2	%
Performance Brands:	$	194.4	8.5	%	$	177.3	10.3	%
Consolidated sales	$	2,282.2	100.0	%	$	1,714.3	100.0	%

Major Customers

During the three and nine months ended September 30, 2021 and 2020, the Company had no customer that represented 10% or greater of consolidated sales.

Major Suppliers

During the three months ended September 30, 2021 and 2020, the Company had two suppliers that supplied approximately 92.4% and 88.6%, respectively, of its crude oil supply. During the nine months ended September 30, 2021 and 2020, the Company had two suppliers that supplied approximately 89.2% and 82.2%, respectively, of its crude oil supply.

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Subsequent Events (Notes)	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent EventsAs of November 1, 2021, the fair value of the Company’s derivatives have increased by approximately $4.5 million subsequent to September 30, 2021

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Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Change in Accounting Policy

During the first quarter of fiscal 2021, the Company changed its method of accounting for shipping and handling costs, which are primarily costs paid to third-party shippers for transporting products to customers. Under the new method of accounting, the Company includes shipping costs in cost of sales, whereas previously, they were included in operating costs and expenses as a separate line item as transportation expense.

The Company believes that including these expenses in cost of sales is preferable, as it better aligns these costs with the related revenue in the gross profit calculation and is consistent with the practices of other industry peers. This change in accounting principle has been applied retrospectively, and the unaudited condensed consolidated statements of operations reflect the effect of this accounting principle change for all periods presented. This reclassification had no impact on net income (loss) before income taxes, net income (loss) attributable to limited partners, limited partners’ interest basic net income (loss) per unit, or limited partners’ interest diluted net income (loss) per unit. The condensed consolidated balance sheets, unaudited condensed consolidated statements of comprehensive income (loss), unaudited condensed consolidated statements of partners’ capital (deficit), and unaudited condensed consolidated statements of cash flows were not impacted by this accounting principle change.

The unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020 have been adjusted to reflect this change in accounting policy. The impact of the adjustment for the three and nine months ended September 30, 2020 was an increase of $28.1 million and $83.7 million, respectively, to cost of sales and a corresponding decrease to transportation expense in the unaudited condensed consolidated statements of operations.

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Organization, Consolidation and Presentation of Financial Statements (Policies)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.	The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.	The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.	The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Sep. 30, 2021

Sep. 30, 2020

Accounting Policies [Abstract]

Inventory Financing [Policy Text Block]

While title to certain inventories will reside with Macquarie, the Supply and Offtake Agreements are accounted for by the Company similar to a product financing arrangement; therefore, the inventories sold to Macquarie will continue to be included in the Company’s condensed consolidated balance sheets until processed and sold to a third party.

Basis of Accounting

The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020, included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) in the U.S. have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the following disclosures are adequate to make the information presented not misleading. The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements reflect all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the interim periods presented. All adjustments are of a normal nature, unless otherwise disclosed.

Revenue from Contract with Customer [Policy Text Block]

Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer, or, in certain cases, upon receipt by the customer in accordance with contractual terms.The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities.Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation.The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less.Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606.

Inventories

An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory valuation. In certain circumstances, the Company may decide not to replenish inventory for certain products or product lines during an interim period, in which case, the Company may record interim LIFO adjustments during that period.Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the LCM value.

Derivatives

Derivatives

The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products, natural gas and precious metals. The Company uses various strategies to reduce its exposure to commodity price risk. The strategies to reduce the Company’s risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce the Company’s exposure with respect to:

•crude oil purchases and sales;

•fuel product sales and purchases;

•natural gas purchases;

•precious metals purchases; and

•fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as New York Mercantile Exchange West Texas Intermediate (“NYMEX WTI”), Light Louisiana Sweet, Western Canadian Select (“WCS”), WTI Midland, Mixed Sweet Blend, Magellan East Houston and ICE Brent.

The Company manages its exposure to commodity markets, credit, volumetric and liquidity risks to manage its costs and volatility of cash flows as conditions warrant or opportunities become available. These risks may be managed in a variety of ways that may include the use of derivative instruments. Derivative instruments may be used for the purpose of mitigating risks associated with an asset, liability and anticipated future transactions and the changes in fair value of the Company’s derivative instruments will affect its earnings and cash flows; however, such changes should be offset by price or rate changes related to the underlying commodity or financial transaction that is part of the risk management strategy. The Company does not speculate with derivative instruments or other contractual arrangements that are not associated with its business objectives.

Speculation is defined as increasing the Company’s natural position above the maximum position of its physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with the Company’s business activities and objectives. The Company’s positions are monitored routinely by a risk management committee to ensure compliance with its stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by the Company’s risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or its risk profiles. Such changes in strategies are to position the Company in relation to its risk exposures in an attempt to capture market opportunities as they arise.

The Company is obligated to repurchase crude oil and refined products from Macquarie at the termination of the Supply and Offtake Agreements in certain scenarios. The Company has determined that the redemption feature on the initially recognized liability related to the Supply and Offtake Agreements is an embedded derivative indexed to commodity prices. As such, the Company has accounted for these embedded derivatives at fair value with changes in the fair value, if any, recorded in Gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations.

The Company recognizes all derivative instruments at their fair values as either current assets or current liabilities in the condensed consolidated balance sheets. Fair value includes any premiums paid or received and unrealized gains and losses. Fair value does not include any amounts receivable from or payable to counterparties, or collateral provided to counterparties. Derivative asset and liability amounts with the same counterparty are netted against each other for financial reporting purposes in accordance with the provisions of our master netting arrangements.Certain of the Company’s outstanding derivative instruments are subject to credit support agreements with the applicable counterparties which contain provisions setting certain credit thresholds above which the Company may be required to post agreed-upon collateral, such as cash or letters of credit, with the counterparty to the extent that the Company’s mark-to-market net liability, if any, on all outstanding derivatives exceeds the credit threshold amount per such credit support agreement. The majority of the credit support agreements covering the Company’s outstanding derivative instruments also contain a general provision stating that if the Company experiences a material adverse change in its business, in the reasonable discretion of the counterparty, the Company’s credit threshold could be lowered by such counterparty.The cash flow impact of the Company’s derivative activities is classified primarily as a change in assets and liabilities in the operating activities section in the unaudited condensed consolidated statements of cash flows.For derivative instruments not designated as hedges, the change in fair value of the asset or liability for the period is recorded to Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Upon the settlement of a derivative not designated as a hedge, the gain or loss at settlement is recorded to Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into natural gas swaps, crack spread swaps and crude oil basis swaps that do not qualify as cash flow hedges for accounting purposes. However, these instruments provide economic hedges of the purchases and sales of the Company’s natural gas, crude oil, and refined products.

Fair Value Measurement

In accordance with ASC 820, the Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. Observable inputs are from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available in the circumstances. These tiers include the following:

•Level 1 — inputs include observable unadjusted quoted prices in active markets for identical assets or liabilities

•Level 2 — inputs include other than quoted prices in active markets that are either directly or indirectly observable

•Level 3 — inputs include unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions

In determining fair value, the Company uses various valuation techniques and prioritizes the use of observable inputs. The availability of observable inputs varies from instrument to instrument and depends on a variety of factors including the type of instrument, whether the instrument is actively traded and other characteristics particular to the instrument. For many financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants and the valuation does not require significant management judgment. For other financial instruments, pricing inputs are less observable in the marketplace and may require management judgment.Derivative instruments are reported in the accompanying unaudited condensed consolidated financial statements at fair value. The Company’s derivative instruments consist of over-the-counter contracts, which are not traded on a public exchange.Commodity derivative instruments are measured at fair value using a market approach. To estimate the fair values of the Company’s commodity derivative instruments, the Company uses the forward rate, the strike price, contractual notional amounts, the risk-free rate of return and contract maturity. Various analytical tests are performed to validate the counterparty data. The fair values of the Company’s derivative instruments are adjusted for nonperformance risk and creditworthiness of the counterparty through the Company’s credit valuation adjustment (“CVA”). The CVA is calculated at the counterparty level utilizing the fair value exposure at each payment date and applying a weighted probability of the appropriate survival and marginal default percentages. The Company uses the counterparty’s marginal default rate and the Company’s survival rate when the Company is in a net asset position at the payment date and uses the Company’s marginal default rate and the counterparty’s survival rate when the Company is in a net liability position at the payment date.Observable inputs utilized to estimate the fair values of the Company’s derivative instruments were based primarily on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Based on the use of various unobservable inputs, principally non-performance risk, creditworthiness of the counterparties and unobservable inputs in the forward rate, the Company has categorized these derivative instruments as Level 3. Significant increases (decreases) in any of those unobservable inputs in isolation would result in a significantly lower (higher) fair value measurement. The Company believes it has obtained the most accurate information available for the types of derivative instruments it holds.Pension assets are reported at fair value in the accompanying unaudited condensed consolidated financial statements.The fixed income bond funds, mutual equity funds, and mutual balanced funds are measured at fair value using a market approach based on quoted prices from national securities exchanges and are categorized in Level 1 of the fair value hierarchy.Unit-based compensation liability awards are awards that are currently expected to be settled in cash on their vesting dates, rather than in equity units (“Liability Awards”). The Liability Awards are categorized as Level 1 because the fair value of the Liability Awards is based on the Company’s quoted closing unit price as of each balance sheet date.The Company’s RINs Obligation is categorized as Level 2 and is measured at fair value using the market approach based on prices obtained from an independent pricing service.The fair value of precious metals obligations is based upon unadjusted exchange-quoted prices and is, therefore, classified within Level 1 of the fair value hierarchy.

Certain non-financial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The Company assesses goodwill for impairment annually and whenever events or changes in circumstances indicate its carrying value may not be recoverable. The fair value of the reporting units is determined using the income approach. The income approach focuses on the income-producing capability of an asset, measuring the current value of the asset by calculating the present value of its future economic benefits such as cash earnings, cost savings, corporate tax structure and product offerings. Value indications are developed by discounting expected cash flows to their present value at a rate of return that incorporates the risk-free rate for the use of funds, the expected rate of inflation and risks associated with the reporting unit. These assets would generally be classified within Level 3, in the event that the Company were required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements.

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including definite-lived intangible assets and property, plant and equipment, when events or circumstances warrant such a review. Fair value is determined primarily using anticipated cash flows assumed by a market participant discounted at a rate commensurate with the risk involved and these assets would generally be classified within Level 3, in the event that the Company was required to measure and record such assets at fair value within its unaudited condensed consolidated financial statements.

The carrying value of cash and cash equivalents are each considered to be representative of their fair value.The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s senior notes and secured notes defined as Level 2 was based upon quoted prices for identical or similar liabilities in markets that are not active. The carrying value of borrowings, if any, under the Company’s revolving credit facility, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3.

Segment Reporting

The Company determines its reportable segments based on how the business is managed internally for the products sold to customers, including how results are reviewed and resources are allocated by the chief operating decision maker (“CODM”). Effective January 1, 2021, the Company reorganized its business segments as a result of a change in how the CODM allocates resources, makes operating decisions and assesses the performance of its business. As a result, as of January 1, 2021, the Company’s operations are managed by the CODM using the following reportable segments:

•Specialty Products and Solutions. The Specialty Products and Solutions segment consists of our customer-focused solutions and formulations businesses, covering multiple specialty product lines, anchored by our unique integrated complex in North West Louisiana.

•Montana/Renewables. The Montana/Renewables segment is composed of our Great Falls refinery and dual-train energy transition project.

•Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands.

•Corporate. The Corporate segment primarily consists of general and administrative expenses not allocated to the Montana/Renewables, Specialty Products and Solutions, or Performance Brands segments.

Segment information presented herein reflects the impact of this reorganization for all periods presented.

During the first quarter of 2021, the CODM changed the definition and calculation of Adjusted EBITDA to exclude RINs mark-to-market adjustments (see item (j) below). The Company’s RINs liability is calculated by multiplying the RINs shortage (based on actual results) by the period end spot price and is subsequently revalued as of the last day of each accounting period. The resulting non-cash adjustments are included in cost of sales in the statement of operations, with the exception of RINs for the 2019 compliance year related to the San Antonio refinery, which are included in other operating expense. The Company believes that this revised definition and calculation better reflects the performance of the Company’s business segments including cash flows because it excludes these non-cash fluctuations. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 - “Summary of Significant Accounting Policies,” of the Company’s 2020 Annual Report on Form 10-K, except that the disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company accounts for inter-segment sales and transfers using market-based transfer pricing. The Company will periodically refine its expense allocation methodology for its segment reporting as more specific information becomes available and the industry or market changes. In addition, the accounting policies of the reporting segments for shipping and handling costs, which are primarily costs paid to third-party shippers for transporting products to customers, are the same as that described in this report in Note 2 - “Change in Accounting Policy.” The Company evaluates performance based upon Adjusted EBITDA (a non-GAAP financial measure). The Company defines Adjusted EBITDA for any period as EBITDA adjusted for (a) impairment; (b) unrealized gains and losses from mark-to-market accounting for hedging activities; (c) realized gains and losses under derivative instruments excluded from the determination of net income (loss); (d) 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); (e) debt refinancing fees, extinguishment costs, premiums and penalties; (f) any net gain or loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) amortization of turnaround costs; (h) LCM inventory adjustments; (i) the impact of liquidation of inventory layers calculated using the LIFO method; (j) RINs mark-to-market adjustments; and (k) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

The Company offers specialty, fuels, and packaged products primarily in categories consisting of lubricating oils, solvents, waxes, gasoline, diesel, jet fuel, asphalt, heavy fuel oils, high-performance branded specialty products, and other specialty and fuels products.

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Revenue Recognition Shipping and Handling (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Revenue from Contract with Customer [Policy Text Block]	Revenues are recognized when control of the promised goods are transferred to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, Revenue from Contracts with Customers, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods promised within each contract and determines the performance obligations and assesses whether each promised good is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. For each contract, the Company considers the promise to transfer products, each of which are distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to variable consideration such as product returns, rebates or other discounts to determine the net consideration to which the Company expects to be entitled. The Company transfers control and recognizes revenue upon shipment to the customer, or, in certain cases, upon receipt by the customer in accordance with contractual terms.The Company assesses, collects and remits excise taxes associated with the sale of certain of its fuel products. Furthermore, the Company collects and remits sales taxes associated with certain sales of its products to non-exempt customers. The Company excludes excise taxes and sales taxes that are collected from customers from the transaction price in its contracts with customers. Accordingly, revenue from contracts with customers is net of sales-based taxes that are collected from customers and remitted to taxing authorities.Shipping and handling costs are deemed to be fulfillment activities rather than a separate distinct performance obligation.The Company may incur incremental costs to obtain a sales contract, which under ASC 606 should be capitalized and amortized over the life of the contract. The Company has elected to apply the practical expedient in ASC 340-40-50-5 allowing the Company to expense these costs since the contracts are short-term in nature with a contract term of one year or less.Under product sales contracts, the Company invoices customers for performance obligations that have been satisfied, at which point payment is unconditional. Accordingly, a product sales contract does not give rise to contract assets or liabilities under ASC 606.

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Leases (Policies)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Lease, Practical Expedients, Package [true false]	true
Short-term Leases [Policy Text Block]	The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

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Inventories (Tables)

9 Months Ended

Sep. 30, 2021

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consist of the following (in millions):

	September 30, 2021						December 31, 2020
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	48.5	$	23.0	$	71.5	$	30.8	$	11.5	$	42.3
Work in process	33.9		29.6		63.5		31.8		27.4		59.2
Finished goods	117.5		44.8		162.3		114.0		39.4		153.4
	$	199.9	$	97.4	$	297.3	$	176.6	$	78.3	$	254.9

(1)Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 8 - “Inventory Financing Agreements” for further information.

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Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Leases, Weighted Average Lease Term and Discount Rate [Table Text Block]

The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases were as follows:

	September 30, 2021		December 31, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	4.6		3.8
Finance leases	5.0		5.4
Weighted-average discount rate:
Operating leases	6.8	%	7.3	%
Finance leases	7.3	%	8.3	%

Leases - Maturity of Lease Liabilities [Table Text Block]

As of September 30, 2021, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions):

Maturity of Lease Liabilities	Operating Leases (1)		Finance Leases      (2)		Total
2021	$	11.8	$	0.3	$	12.1
2022	18.6		1.0		19.6
2023	14.8		1.0		15.8
2024	10.5		1.0		11.5
2025	7.4		0.7		8.1
Thereafter	13.0		0.9		13.9
Total	$	76.1	$	4.9	$	81.0
Less: Interest	10.9		0.8		11.7
Present value of lease liabilities	$	65.2	$	4.1	$	69.3
Less obligations due within one year	22.8		0.8		23.6
Long-term lease obligation	$	42.4	$	3.3	$	45.7

(1)As of September 30, 2021, the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2021.

(2)As of September 30, 2021, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2021.

Lease, Schedule of Lease Assets and Liabilities [Table Text Block]

Supplemental balance sheet information related to the Company’s leases as of September 30, 2021 and December 31, 2020, were as follows (in millions):

		September 30, 2021		December 31, 2020
Assets:	Classification:
Operating lease assets	Other noncurrent assets, net (1)	$	64.7	$	85.8
Finance lease assets	Property, plant and equipment, net (2)	4.4		4.0
Total leased assets		$	69.1	$	89.8
Liabilities:
Current
Operating	Other current liabilities (1)	$	22.8	$	41.4
Finance	Current portion of long-term debt	0.8		0.6
Non-current
Operating	Other long-term liabilities (1)	42.4		44.8
Finance	Long-term debt, less current portion	3.3		3.1
Total lease liabilities		$	69.3	$	89.9

(1)In the third quarter of 2021, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $4.4 million.

(2)Finance lease assets are recorded net of accumulated amortization of $3.9 million and $3.4 million as of September 30, 2021 and December 31, 2020, respectively.

Lease, Cost [Table Text Block]

The components of lease expense related to the Company’s leases for the three and nine months ended September 30, 2021 and 2020 were as follows (in millions).

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Costs:	Classification:	2021		2020		2021		2020
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	11.9	$	10.3	$	35.5	$	36.4
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.9		1.7		5.9		6.9
Variable operating lease cost (2)	Cost of Sales; SG&A Expenses	7.1		0.4		13.5		1.7
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.2		0.1		0.5		0.4
Interest on lease liabilities	Interest expense	0.1		0.1		0.3		0.3
Total lease cost		$	21.2	$	12.6	$	55.7	$	45.7

(1)The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

(2)The Company’s railcar leases typically include a mileage limit the railcar can travel over the life of the lease. For any mileage incurred over this limit, the Company is obligated to pay an agreed upon dollar value for each mile that is traveled over the limit.

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Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Instrument [Line Items]

Summary of Long-Term Debt

Long-term debt consisted of the following (in millions):

	September 30, 2021		December 31, 2020
Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rates of 2.4% for the nine months ended September 30, 2021 and the year ended December 31, 2020.	$	48.1	$	108.0
Borrowings under the 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.3% and 8.1% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively. (1)	80.1		150.6
Borrowings under the 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.3% and 8.1% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.	325.0		325.0
Borrowings under the 2024 Secured Notes, interest at a fixed rate of 9.25%, interest payments semiannually, borrowings due July 2024, effective interest rate of 9.4% for the nine months ended September 30, 2021 and the year ended December 31, 2020.	200.0		200.0
Borrowings under the 2025 Notes, interest at a fixed rate of 11.0%, interest payments semiannually, borrowings due April 2025, effective interest rate of 11.4% and 11.3% for the nine months ended September 30, 2021 and the year ended December 31, 2020, respectively.	550.0		550.0
Shreveport terminal asset financing arrangement	66.4		—
Other	1.1		2.3
Finance lease obligations, at various interest rates, interest and principal payments monthly through June 2028	4.1		3.7
Less unamortized debt issuance costs (2)	(11.4)		(14.2)
Less unamortized discounts	(4.0)		(3.1)
Total debt	$	1,259.4	$	1,322.3
Less current portion of long-term debt	88.0		2.9
Total long-term debt	$	1,171.4	$	1,319.4

(1)The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.1 million and $0.6 million as of September 30, 2021 and December 31, 2020, respectively.

(2)Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $22.7 million and $20.5 million at September 30, 2021 and December 31, 2020, respectively.

Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations

As of September 30, 2021, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2021	$	2.8
2022	87.5
2023	381.3
2024	208.9
2025	559.3
Thereafter	34.9
Total	$	1,274.7

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2021

Derivative [Line Items]

Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets

The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets (in millions):

		September 30, 2021						December 31, 2020
	Balance Sheet Location	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
Montana/Renewables segment:
WCS crude oil basis swaps	Other current assets	$	—	$	—	$	—	$	0.4	$	(0.4)	$	—
Total derivative instruments		$	—	$	—	$	—	$	0.4	$	(0.4)	$	—

Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities

The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative liabilities in the Company’s condensed consolidated balance sheets (in millions):

		September 30, 2021						December 31, 2020
	Balance Sheet Location	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
Specialty Products and Solutions segment:
Inventory financing obligation	Obligations under inventory financing agreements	$	(15.6)	$	—	$	(15.6)	$	(1.1)	$	—	$	(1.1)
Montana/Renewables segment:
Inventory financing obligation	Obligations under inventory financing agreements	(4.4)		—		(4.4)		(1.1)		—		(1.1)
WCS crude oil basis swaps	Other current liabilities	—		—		—		(1.7)		0.4		(1.3)
Total derivative instruments		$	(20.0)	$	—	$	(20.0)	$	(3.9)	$	0.4	$	(3.5)

Commodity Contract | Not Designated as Hedging Instrument [Member]

Derivative [Line Items]

Schedule of Derivative Instruments

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three months ended September 30, 2021 and 2020, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments
	Three Months Ended September 30,				Three Months Ended September 30,
	2021		2020		2021		2020
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(2.8)	$	(2.2)
Natural gas swaps	—		0.1		—		0.7
Crack spread swaps	—		8.7		—		(6.7)
Montana/Renewables segment:
Inventory financing obligation	—		—		(0.5)		(0.3)
WCS crude oil basis swaps	—		8.3		—		(0.7)
Total	$	—	$	17.1	$	(3.3)	$	(9.2)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2021 and 2020, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain (Loss) on Derivative Instruments
	Nine Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(14.5)	$	5.1
Natural gas swaps	—		(0.5)		—		0.5
Crack spread swaps	—		24.1		—		6.1
Montana/Renewables segment:
Inventory financing obligation	—		—		(3.3)		4.1
WCS crude oil basis swaps	1.1		12.9		1.3		5.4
Total	$	1.1	$	36.5	$	(16.5)	$	21.2

WCS crude oil basis swaps | Fuel Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2021, the Company had no outstanding derivative contracts.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Recurring Assets and Liabilities Measured at Fair Value

The Company’s recurring assets and liabilities measured at fair value were as follows (in millions):

	September 30, 2021								December 31, 2020
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Pension plan investments	$	34.3	$	—	$	—	$	34.3	$	34.4	$	—	$	—	$	34.4
Total recurring assets at fair value	$	34.3	$	—	$	—	$	34.3	$	34.4	$	—	$	—	$	34.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(20.0)	$	(20.0)	$	—	$	—	$	(2.2)	$	(2.2)
WCS crude oil basis swaps	—		—		—		—		—		—		(1.3)		(1.3)
Total derivative liabilities	$	—	$	—	$	(20.0)	$	(20.0)	$	—	$	—	$	(3.5)	$	(3.5)
RINs obligation	—		(240.4)		—		(240.4)		—		(129.4)		—		(129.4)
Precious metals obligations	(7.1)		—		—		(7.1)		(7.9)		—		—		(7.9)
Liability awards	(36.9)		—		—		(36.9)		(14.2)		—		—		(14.2)
Total recurring liabilities at fair value	$	(44.0)	$	(240.4)	$	(20.0)	$	(304.4)	$	(22.1)	$	(129.4)	$	(3.5)	$	(155.0)

Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities

The table below sets forth a summary of net changes in fair value of the Company’s Level 3 financial assets and liabilities (in millions):

	Nine Months Ended September 30,
	2021		2020
Fair value at January 1,	$	(3.5)	$	(6.3)
Realized gain on derivative instruments	1.1		36.5
Unrealized gain (loss) on derivative instruments	(16.5)		21.2
Settlements	(1.1)		(36.5)
Fair value at September 30,	$	(20.0)	$	14.9
Total gain (loss) included in net income (loss) attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	(16.5)	$	21.2

Summary of the Company's Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost

The Company’s carrying and estimated fair value of the Company’s financial instruments, carried at adjusted historical cost were as follows (in millions):

		September 30, 2021				December 31, 2020
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2022 Notes and 2023 Notes	1	$	403.4	$	401.7	$	468.6	$	471.9
2024 Secured Notes and 2025 Notes	2	$	816.0	$	741.4	$	780.8	$	739.6
Revolving credit facility	3	$	48.1	$	46.1	$	108.0	$	104.8
Shreveport terminal asset financing arrangement	3	$	66.4	$	65.0	$	—	$	—
Finance leases and other obligations	3	$	5.2	$	5.2	$	6.0	$	6.0

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Earnings Per Unit (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Unit [Abstract]

Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit

The following table sets forth the computation of basic and diluted earnings per limited partner unit (in millions, except unit and per unit data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Numerator for basic and diluted earnings per limited partner unit:
Net income (loss)	$	51.5	$	(56.1)	$	(173.0)	$	(66.9)
Less:
General partner’s interest in net income (loss)	1.0		(1.1)		(3.5)		(1.3)
Net income (loss) attributable to limited partners	$	50.5	$	(55.0)	$	(169.5)	$	(65.6)
Denominator for earnings per limited partner unit:
Basic weighted average limited partner units outstanding	78,924,380		78,743,083		78,831,988		78,602,651
Effect of dilutive securities:
Incremental Units	47,138		—		—		—
Diluted weighted average limited partner units outstanding (1)	78,971,518		78,743,083		78,831,988		78,602,651
Limited partners’ interest basic net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)
Limited partners’ interest diluted net income (loss) per unit:
Limited partners’ interest	$	0.64	$	(0.70)	$	(2.15)	$	(0.83)

(1)Total diluted weighted average limited partner units outstanding excludes a de-minimis amount of potentially dilutive phantom units which would have been anti-dilutive for the three months ended September 30, 2020 and for the nine months ended September 30, 2021 and 2020

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Segments and Related Information (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2021

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of Reportable Segment Information

Reportable segment information for the three months ended September 30, 2021 and 2020, is as follows (in millions):

Three Months Ended September 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	583.5	$	63.0	$	228.4	$	—	$	—	$	874.9
Inter-segment sales	5.1		—		—		—		(5.1)		—
Total sales	$	588.6	$	63.0	$	228.4	$	—	$	(5.1)	$	874.9
Adjusted EBITDA	$	46.3	$	6.8	$	24.4	$	(18.7)	$	—	$	58.8
Reconciling items to net income:
Depreciation and amortization	16.7		3.4		8.5		1.9		—		30.5
LCM / LIFO gain	(0.8)		(2.9)		(1.0)		—		—		(4.7)
Gain on sale of business, net	(0.2)		—		—		—		—		(0.2)
Interest expense	6.0		0.2		1.9		30.1		—		38.2
Unrealized loss on derivatives	2.8		—		0.5		—		—		3.3
RINs mark-to-market gain	(42.8)		—		(24.1)		—		—		(66.9)
Equity-based compensation and other items											6.7
Income tax expense											0.4
Net income											$	51.5
Capital expenditures	$	8.5	$	0.9	$	16.4	$	—	$	—	$	25.8
PP&E, net	$	382.4	$	34.0	$	476.7	$	10.6	$	—	$	903.7

Three Months Ended September 30, 2020	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	366.2	$	60.9	$	140.9	$	—	$	—	$	568.0
Inter-segment sales	3.3		0.1		—		—		(3.4)		—
Total sales	$	369.5	$	61.0	$	140.9	$	—	$	(3.4)	$	568.0
Adjusted EBITDA	$	23.2	$	18.9	$	9.7	$	(17.1)	$	—	$	34.7
Reconciling items to net loss:
Depreciation and amortization	14.8		4.0		9.5		1.9		—		30.2
LCM / LIFO (gain) loss	0.5		1.3		(0.7)		—		—		1.1
Interest expense	1.3		0.1		0.8		31.1		—		33.3
Unrealized loss on derivatives	8.2		—		1.0		—		—		9.2
RINs mark-to-market loss	6.4		—		2.9		—		—		9.3
Other non-recurring expenses											5.5
Equity-based compensation and other items											2.1
Income tax expense											0.1
Net loss											$	(56.1)
Capital expenditures	$	6.3	$	0.5	$	3.4	$	0.1	$	—	$	10.3
PP&E, net	$	412.3	$	34.5	$	468.5	$	17.6	$	—	$	932.9

Nine Months Ended September 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,507.4	$	194.4	$	580.4	$	—	$	—	$	2,282.2
Inter-segment sales	13.2		—		—		—		(13.2)		—
Total sales	$	1,520.6	$	194.4	$	580.4	$	—	$	(13.2)	$	2,282.2
Adjusted EBITDA	$	75.9	$	30.1	$	35.2	$	(55.5)	$	—	$	85.7
Reconciling items to net loss:
Depreciation and amortization	49.3		10.2		25.5		5.9		—		90.9
LCM / LIFO gain	(29.7)		(3.4)		(12.0)		—		—		(45.1)
Loss on impairment and disposal of assets	1.8		—		0.1		—		—		1.9
Gain on sale of business, net	(0.2)		—		—		—		—		(0.2)
Interest expense	12.7		0.3		3.5		92.8		—		109.3
Debt extinguishment costs	—		—		—		0.4		—		0.4
Unrealized loss on derivatives	14.5		—		2.0		—		—		16.5
RINs mark-to-market loss	38.8		—		17.5		—		—		56.3
Other non-recurring expenses											2.8
Equity-based compensation and other items											24.4
Income tax expense											1.5
Net loss											$	(173.0)
Capital expenditures	$	45.4	$	2.0	$	27.7	$	—	$	—	$	75.1
PP&E, net	$	382.4	$	34.0	$	476.7	$	10.6	$	—	$	903.7

Nine Months Ended September 30, 2020	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,156.6	$	177.3	$	380.4	$	—	$	—	$	1,714.3
Inter-segment sales	9.7		0.3		—		—		(10.0)		—
Total sales	$	1,166.3	$	177.6	$	380.4	$	—	$	(10.0)	$	1,714.3
Adjusted EBITDA	$	125.6	$	47.1	$	64.9	$	(54.1)	$	—	$	183.5
Reconciling items to net loss:
Depreciation and amortization	45.6		12.0		28.2		5.7		—		91.5
LCM / LIFO loss	31.2		1.3		3.0		—		—		35.5
Loss on impairment and disposal of assets	0.2		1.4		—		5.1		—		6.7
Interest (benefit) expense	(0.1)		0.3		0.1		92.9		—		93.2
Unrealized gain on derivatives	(11.7)		—		(9.5)		—		—		(21.2)
RINs mark-to-market loss	24.3		—		9.1		—		—		33.4
Other non-recurring expenses											4.3
Equity-based compensation and other items											6.2
Income tax expense											0.8
Net loss											$	(66.9)
Capital expenditures	$	42.8	$	1.3	$	9.9	$	0.5	$	—	$	54.5
PP&E, net	$	412.3	$	34.5	$	468.5	$	17.6	$	—	$	932.9

Schedule of Major Product Category Sales

The following table sets forth the major product category sales for the Company’s business segments for the three months ended September 30, 2021 and 2020 (dollars in millions):

	Three Months Ended September 30,
	2021				2020
Specialty Products and Solutions:
Lubricating oils	$	192.0	21.9	%	$	122.5	21.6	%
Solvents	81.7		9.3	%	54.6		9.6	%
Waxes	40.6		4.7	%	33.8		6.0	%
Fuels, asphalt and other by-products	269.2		30.8	%	155.3		27.3	%
Total	$	583.5	66.7	%	$	366.2	64.5	%
Montana/Renewables:
Gasoline	$	53.9	6.2	%	$	38.8	6.8	%
Diesel	92.6		10.5	%	50.9		9.0	%
Jet fuel	8.6		1.0	%	3.7		0.6	%
Asphalt, heavy fuel oils and other	73.3		8.4	%	47.5		8.4	%
Total	$	228.4	26.1	%	$	140.9	24.8	%
Performance Brands:	$	63.0	7.2	%	$	60.9	10.7	%
Consolidated sales	$	874.9	100.0	%	$	568.0	100.0	%

The following table sets forth the major product category sales for the Company’s business segments for the nine months ended September 30, 2021 and 2020 (dollars in millions):

	Nine Months Ended September 30,
	2021				2020
Specialty Products and Solutions:
Lubricating oils	$	482.2	21.1	%	$	352.5	20.6	%
Solvents	223.0		9.8	%	179.0		10.4	%
Waxes	110.1		4.9	%	92.2		5.4	%
Fuels, asphalt and other by-products	692.1		30.3	%	532.9		31.1	%
Total	$	1,507.4	66.1	%	$	1,156.6	67.5	%
Montana/Renewables:
Gasoline	$	137.4	6.0	%	$	103.0	6.0	%
Diesel	241.7		10.6	%	150.3		8.8	%
Jet fuel	21.0		0.9	%	11.7		0.7	%
Asphalt, heavy fuel oils and other	180.3		7.9	%	115.4		6.7	%
Total	$	580.4	25.4	%	$	380.4	22.2	%
Performance Brands:	$	194.4	8.5	%	$	177.3	10.3	%
Consolidated sales	$	2,282.2	100.0	%	$	1,714.3	100.0	%

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Description of the Business - Narrative (Details) - shares	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Limited Partner
Capital Unit [Line Items]
Limited Partners' Capital Account, Units Outstanding	78,676,262	78,062,346
General Partner [Member]
Capital Unit [Line Items]
General Partners' Capital Account, Units Outstanding	1,605,636
CLMT General Partner [Member] | General Partner [Member]
Capital Unit [Line Items]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest	2.00%
CLMT Limited Partner [Member] | Limited Partner
Capital Unit [Line Items]
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest	98.00%

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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	$ 1.9	$ 6.7
Accounts Receivable, after Allowance for Credit Loss	218.4		$ 152.4
Operating Segments [Member] | Corporate Segment [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	0.0	5.1
Operating Segments [Member] | Specialty Product [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	1.8	0.2
Operating Segments [Member] | Fuel Product [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	$ 0.0	$ 1.4

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Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Sales by major source	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3
Total Sales
Disaggregation of Revenue [Line Items]
Sales by major source	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3

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Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory method			last-in, first-out (“LIFO”)
Replacement cost under stated LIFO value	$ 49.1		$ 49.1		$ (6.7)
Lower of cost or market inventory adjustment	$ 4.7	$ 1.1	$ 45.1	$ 35.3
Effect of LIFO Inventory Liquidation on Income		$ 0.0

XML

Inventories - Summary of Inventories (Details) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Inventories
Raw materials		$ 71.5	$ 42.3
Work in process		63.5	59.2
Finished goods		162.3	153.4
Total Inventories		297.3	254.9
Titled Inventory
Inventories
Raw materials		48.5	30.8
Work in process		33.9	31.8
Finished goods		117.5	114.0
Total Inventories		199.9	176.6
Supply&Offtake Agreements
Inventories
Raw materials	[1]	23.0	11.5
Work in process	[1]	29.6	27.4
Finished goods	[1]	44.8	39.4
Total Inventories	[1]	$ 97.4	$ 78.3

[1] Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 8 - “Inventory Financing Agreements” for further information.

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Leases Leases - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ 3.9	$ 3.4
Lessee, Finance Lease, Option to Extend	no
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Minimum [Member]
Lessee, Finance Lease, Renewal Term	1 year
Maximum [Member]
Lessee, Finance Lease, Renewal Term	18 years
Lessee, Finance Lease, Option to Extend	34 years

XML

Leases Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating Lease Assets	[1]	$ 64.7	$ 85.8
Finance Lease Assets	[2]	4.4	4.0
Total Leased Asset		69.1	89.8
Current portion of operating lease liabilities	[1]	22.8	41.4
Current portion of finance leases		0.8	0.6
Long-term operating lease liabilities	[1]	42.4	44.8
Long-term finance lease liabilities		3.3	3.1
Total Lease Liability		69.3	89.9
Lease, Operating Right-of-Use Asset and liability additions		4.4
Finance Lease, Accumulated Amortization		$ 3.9	$ 3.4

[1] In the third quarter of 2021, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $4.4 million.

[2] Finance lease assets are recorded net of accumulated amortization of $3.9 million and $3.4 million as of September 30, 2021 and December 31, 2020, respectively.

XML

Leases Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Fixed operating lease cost	$ 11.9	$ 10.3	$ 35.5	$ 36.4
Short-term Operating Lease Cost	1.9	1.7	5.9	6.9
Variable Operating Lease Cost	7.1	0.4	13.5	1.7
Finance Lease Amortization of ROU Asset	0.2	0.1	0.5	0.4
Interest on lease liabilities	0.1	0.1	0.3	0.3
Total Lease Cost	$ 21.2	$ 12.6	$ 55.7	$ 45.7

XML

Leases Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
		Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2019	[1]	$ 11.8	$ 11.8
2020	[1]	18.6	18.6
2021	[1]	14.8	14.8
2022	[1]	10.5	10.5
2023	[1]	7.4	7.4
Total Operating Lease Payments	[1]	76.1	76.1
Less: Interest	[1]	10.9	10.9
Present value of operating lease liabilities	[1]	65.2	$ 65.2
Operating Lease, Lease Not yet Commenced, Description			no
2019	[2]	0.3	$ 0.3
2020	[2]	1.0	1.0
2021	[2]	1.0	1.0
2022	[2]	1.0	1.0
2023	[2]	0.7	0.7
Total Finance Lease Payments	[2]	4.9	4.9
Less: Interest	[2]	0.8	0.8
Present value of Finance Lease Liability	[2]	4.1	$ 4.1
Finance Lease Material Option to Extend			no
Finance Lease, Lease Not yet Commenced, Description			no
2019		12.1	$ 12.1
2021		15.8	15.8
2022		11.5	11.5
2023		8.1	8.1
Thereafter		13.9	13.9
Total Lease Liability, Payments due		81.0	81.0
Less: Total Interest		11.7	11.7
Present Value of Total Lease Liability		69.3	69.3	$ 89.9
Total Lease Liability		69.3	69.3	89.9
Lessee, Operating Lease, Liability, to be Paid, after Year Four		13.0	13.0
Finance Lease, Liability, to be Paid, after Year Four	[2]	0.9	0.9
Current portion of operating lease liabilities	[3]	22.8	22.8	41.4
Current portion of finance leases		0.8	0.8	0.6
Lease, Liability, current		23.6	23.6
Long-term operating lease liabilities	[3]	42.4	42.4	44.8
Long-term finance lease liabilities		3.3	3.3	$ 3.1
Lease Liability, noncurrent		45.7	45.7
2020		$ 19.6	19.6
Lessee, Operating Lease, Option to Extend		no
Lease Arrangement, Types [Domain]
Leases [Abstract]
Present Value of Total Lease Liability		$ 69.3	69.3
Total Lease Liability		$ 69.3	$ 69.3

[1] As of September 30, 2021, the Company’s operating lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases signed but not yet commenced as of September 30, 2021.

[2] As of September 30, 2021, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2021.

[3] In the third quarter of 2021, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $4.4 million.

XML

Leases Leases - Lease Term and Discount Rate (Details)	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	4 years 7 months 6 days	3 years 9 months 18 days
Finance Lease, Weighted Average Remaining Lease Term	5 years	5 years 4 months 24 days
Operating Lease, Weighted Average Discount Rate, Percent	6.80%	7.30%
Finance Lease, Weighted Average Discount Rate, Percent	7.30%	8.30%

XML

Commitments and Contingencies - Narrative - Environmental (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
RINs Obligation	$ (240.4)	$ (129.4)
Level 2
Loss Contingencies [Line Items]
RINs Obligation	$ (240.4)	$ (129.4)

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Commitments and Contingencies Commitments and Contingencies - Narrative -Standby Letters of Credit (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Revolving Credit Facility
Loss Contingencies [Line Items]
Outstanding standby letters of credit	$ 27.9	$ 23.7
Revolver commitments	$ 600.0	$ 600.0
Revolving Credit Facility | Maximum [Member]
Loss Contingencies [Line Items]
Letter of Credit Sublimit	90.00%	90.00%
Letter of Credit
Loss Contingencies [Line Items]
Revolver commitments	$ 300.0	$ 300.0

XML

Commitments and Contingencies Commitments and Contingencies - Narrative - Throughput Contract (Details)
$ in Millions

9 Months Ended

Sep. 30, 2021

USD ($)

bbl

Commitments and Contingencies Disclosure [Abstract]

Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block]

As of September 30, 2021, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2021	$	1.0
2022	3.9
2023	3.9
2024	4.0
2025	4.0
Thereafter	6.0
Total (1)	$	22.8

(1)As of September 30, 2021, the estimated minimum payments for the unconditional purchase commitments have been accrued and are included in other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. This liability was accrued due to the fact that the contract was entered into to supply crude to a divested facility.

Long-term Purchase Commitment [Line Items]

Long-term Purchase Commitment, Minimum Volume Required | bbl

5,000

Product Liability Contingency, Third Party Recovery, Percentage

2.00%

Throughput Contract Term

seven

Purchase Commitment, Remaining Minimum Amount Committed

$ 22.8

^[1]

2020

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

1.0

2021

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

3.9

2022

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

3.9

2023

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

4.0

2024

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

4.0

Thereafter

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

$ 6.0

[1] As of September 30, 2021, the estimated minimum payments for the unconditional purchase commitments have been accrued and are included in other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. This liability was accrued due to the fact that the contract was entered into to supply crude to a divested facility.

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Inventory Financing Agreement Inventory Financing Agreement - Narrative (Details) $ in Millions		3 Months Ended		9 Months Ended
	May 09, 2019	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Mar. 31, 2018 barrelsPerDay	Jun. 19, 2017 barrelsPerDay
Oil and Gas, Delivery Commitment [Line Items]
Interest expense		$ 38.2	$ 33.3	$ 109.3	$ 93.2
Obligations under inventory financing agreements		152.4		$ 152.4		$ 98.8
Inventory Financing Obligations | London Interbank Offered Rate (LIBOR)
Oil and Gas, Delivery Commitment [Line Items]
Debt Instrument, Basis Spread on Variable Rate				3.25%
Inventory Financing Obligations
Oil and Gas, Delivery Commitment [Line Items]
Interest Income, Other			$ (1.2)		$ (2.0)
Interest expense		5.5		$ 10.3
Deferred payment arrangement, maximum percentage of eligible inventory				90.00%
Deferred payment arrangement, outstanding amount		26.4		$ 26.4		$ 15.0
Obligations under inventory financing agreements		5.0		5.0
Inventory Financing Obligations | Macquarie
Oil and Gas, Delivery Commitment [Line Items]
Amount retained from initial inventory purchase to cover credit and liquidation risks		$ 14.6		$ 14.6
Great Falls, MT [Member]
Oil and Gas, Delivery Commitment [Line Items]
Inventory Financing Agreement Extension	Jun. 30, 2023
Great Falls, MT [Member] | Inventory Financing Obligations
Oil and Gas, Delivery Commitment [Line Items]
Barrels of crude oil per day provided by Macquarie (in barrels per day) | barrelsPerDay							30,000
shreveport [Member]
Oil and Gas, Delivery Commitment [Line Items]
Inventory Financing Agreement Extension	Jun. 30, 2023
shreveport [Member] | Inventory Financing Obligations
Oil and Gas, Delivery Commitment [Line Items]
Barrels of crude oil per day provided by Macquarie (in barrels per day) | barrelsPerDay								60,000

XML

Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions			9 Months Ended	12 Months Ended
		Feb. 23, 2018	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 269.9
Senior Notes [Abstract]
Other			1.1	$ 2.3
Present value of Finance Lease Liability	[1]		4.1
Unamortized Debt Issuance Expense	[2]		11.4	14.2
Total long-term debt			1,259.4	1,322.3
Less current portion of long-term debt			88.0	2.9
Total long-term debt, excluding current portion			1,171.4	1,319.4
Asset financing arrangement			66.4	0.0
Revolving Credit Facility
Debt Instrument [Line Items]
Long-term Line of Credit			$ 48.1	$ 108.0
Senior Notes [Abstract]
Weighted average interest rate			2.40%	2.40%
Maturity date		Feb. 23, 2023
Notes due April twenty twenty-five at Eleven percent interest payments [Member]
Senior Notes [Abstract]
Effective interest rate			11.40%	11.30%
Fixed rate			11.00%	11.00%
7.625% Notes
Senior Notes [Abstract]
Effective interest rate			8.30%	8.10%
Fixed rate			7.625%
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments
Summary of Long-term debt
Borrowings under Notes			$ 325.0	$ 325.0
Senior Notes [Abstract]
Effective interest rate			8.30%	8.10%
Fixed rate			7.75%
Notes Due April Two Thousand Two Four at Fixed Rate of Nine Point Two Five Percentage Interest Payments
Senior Notes [Abstract]
Effective interest rate			9.40%	9.40%
Fixed rate			9.25%	9.25%
Notes Due January Two Thousand Twenty One at Fixed Rated Eleven Point Five Percentage Interest Payments [Member]
Summary of Long-term debt
Borrowings under Notes			$ 550.0	$ 550.0
Capital Lease Obligations
Senior Notes [Abstract]
Present value of Finance Lease Liability			4.1	3.7
Unamortized Discount on Two Thousand One Nine and Two Thousand Two Zero Notes [Member]
Senior Notes [Abstract]
Less unamortized discounts			(4.0)	(3.1)
Notes Due January Two Thousand Two Two at Fixed Rate of Seven Point Six Two Five Percentage Interest Payments [Domain]
Senior Notes [Abstract]
Senior Notes, Current	[3]		80.1	150.6
Notes Due July Two Thousand Twenty Four at Fixed Rate of Nine Point Two Five Percentage Interest Payments [Domain]
Summary of Long-term debt
Borrowings under Notes			200.0	200.0
Interest Expense | Fair Value Hedging
Senior Notes [Abstract]
Liabilities, fair value adjustment			$ 0.1	$ 0.6

[1] As of September 30, 2021, the Company’s finance lease payments included no material options to extend lease terms that are reasonably certain of being exercised. The Company has no legally binding minimum lease payments for leases that have been signed but not yet commenced as of September 30, 2021.

[2] Deferred debt issuance costs are being amortized by the effective interest rate method over the lives of the related debt instruments. These amounts are net of accumulated amortization of $22.7 million and $20.5 million at September 30, 2021 and December 31, 2020, respectively.

[3] The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.1 million and $0.6 million as of September 30, 2021 and December 31, 2020, respectively.

XML

Long-Term Debt - Narrative (Details) - USD ($) $ in Millions		9 Months Ended
	Feb. 23, 2018	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Long-Term Debt (Textual) [Abstract]
Accumulated Amortization, Deferred Finance Costs		$ 22.7		$ 20.5
(Gain) loss on debt extinguishment		0.4
Repayments of borrowings — senior notes		$ 70.0	$ 0.0
Line of Credit Amendment	Feb. 23, 2018
Gain (Loss) on Extinguishment of Debt [Abstract]
Debt Instrument, Covenant Compliance		in compliance with all covenants under the indentures governing the Senior Notes
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent		$ 325.0		325.0
Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Maturity date	Feb. 23, 2023
Senior secured revolving credit facility		600.0		600.0
Incremental uncommitted expansion feature		500.0
Outstanding standby letters of credit		$ 27.9		$ 23.7
Financial covenant		if the Company’s availability to borrow loans under the revolving credit facility falls below the greater of (i) 10% of the Borrowing Base (as defined in the Credit Agreement) then in effect, or 15% while the Great Falls, MT refinery is included in the Borrowing Base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), then the Company will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.0 to 1.0.
Line of Credit Facility, Current Borrowing Capacity		$ 345.9
Revolving Credit Facility | Maximum
Long-Term Debt (Textual) [Abstract]
Letter of Credit Sublimit		90.00%		90.00%

XML

Long-Term Debt - Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations (Details) - USD ($) $ in Millions	Feb. 23, 2018	Sep. 30, 2021
Maturities of long-term debt
2020		$ 2.8
2021		87.5
2022		381.3
2023		208.9
2024		559.3
Long-term debt		1,274.7
Debt Instrument [Line Items]
Long-Term Debt, Maturity, after Year Four		34.9
Debt Instrument, Repurchased Face Amount		70.0
Revolving Credit Facility
Debt Instrument [Line Items]
borrowing base expansion		$ 99.6
Maturity date	Feb. 23, 2023

XML

Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	$ 0.0	$ 0.4
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Derivative Asset, Fair Value, Gross Liability	0.0	0.4
WCS crude oil basis swaps | Not Designated as Hedging Instrument [Member] | Montana/Renewables
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	0.0	0.4
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Derivative Asset, Fair Value, Gross Liability	$ 0.0	$ 0.4

XML

Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ (20.0)	$ (3.9)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(20.0)	(3.5)
Derivative Liability, Fair Value, Gross Asset	0.0	0.4
Inventory Financing Obligations | Specialty Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(15.6)	(1.1)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(15.6)	(1.1)
Derivative Liability, Fair Value, Gross Asset	0.0	0.0
Inventory Financing Obligations | Montana/Renewables | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(4.4)	(1.1)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(4.4)	(1.1)
Derivative Liability, Fair Value, Gross Asset	0.0	0.0
WCS crude oil basis swaps | Montana/Renewables | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	0.0	(1.7)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	0.0	(1.3)
Derivative Liability, Fair Value, Gross Asset	$ 0.0	$ 0.4

XML

Derivatives - Schedule of Derivative Instruments (Not Designated as Hedges) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ 0.0	$ 17.1	$ 1.1	$ 36.5
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(3.3)	(9.2)	(16.5)	21.2
Natural Gas Swaps [Member] | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.1	0.0	(0.5)
Natural Gas Swaps [Member] | Specialty Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.7	0.0	0.5
crack spread swaps | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	8.7	0.0	24.1
crack spread swaps | Specialty Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	(6.7)	0.0	6.1
WCS crude oil basis swaps [Domain] | Montana/Renewables | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	8.3	1.1	12.9
WCS crude oil basis swaps [Domain] | Montana/Renewables | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	(0.7)	1.3	5.4
Inventory Financing Obligations | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.0	0.0	0.0
Inventory Financing Obligations | Specialty Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(2.8)	(2.2)	(14.5)	5.1
Inventory Financing Obligations | Montana/Renewables | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.0	0.0	0.0
Inventory Financing Obligations | Montana/Renewables | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (0.5)	$ (0.3)	$ (3.3)	$ 4.1

XML

Derivatives Derivatives - Schedule of Derivative Positions (Diesel Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ 0.0	$ 17.1	$ 1.1	$ 36.5
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (3.3)	$ (9.2)	$ (16.5)	$ 21.2

XML

Derivatives Derivatives - Schedule of Derivative Positions (Gasoline Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (3.3)	$ (9.2)	$ (16.5)	$ 21.2
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	17.1	1.1	36.5
WCS crude oil basis swaps [Domain] | Unrealized Gain (Loss) | Montana/Renewables
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	(0.7)	1.3	5.4
WCS crude oil basis swaps [Domain] | Realized Gain (Loss) | Montana/Renewables
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ 0.0	$ 8.3	$ 1.1	$ 12.9

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Derivatives Derivatives - Schedule of Derivative Positions (2/1/1 Crack Spread sales) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Unrealized Gain (Loss)
Derivative [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (3.3)	$ (9.2)	$ (16.5)	$ 21.2
Realized Gain (Loss)
Derivative [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ 0.0	$ 17.1	$ 1.1	$ 36.5

XML

Derivatives - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Total derivative assets	$ 0.0		$ 0.0
Loss on impairment and disposal of assets	$ 1.9	$ 6.7

XML

Derivatives Derivatives - Schedule of positions (Diesel - MEH Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (3.3)	$ (9.2)	$ (16.5)	$ 21.2
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ 0.0	$ 17.1	$ 1.1	$ 36.5

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Fair Value Measurements - Summary of Recurring Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Assets:
Total derivative assets	$ 0.0	$ 0.0
Derivative liabilities:
Total derivative liabilities	20.0	3.5
Fair Value, Measurements, Recurring
Assets:
Pension plan investments	34.3	34.4
Assets, Fair Value Disclosure	34.3	34.4
Derivative liabilities:
Total derivative liabilities	20.0	3.5
RINs Obligation	(240.4)	(129.4)
Precious metals lease	(7.1)	(7.9)
Liability Awards	(36.9)	(14.2)
Total recurring liabilities at fair value	(304.4)	(155.0)
Fair Value, Measurements, Recurring | Level 1
Assets:
Pension plan investments	34.3	34.4
Assets, Fair Value Disclosure	34.3	34.4
Derivative liabilities:
Total derivative liabilities	0.0	0.0
RINs Obligation	0.0	0.0
Precious metals lease	(7.1)	(7.9)
Liability Awards	(36.9)	(14.2)
Total recurring liabilities at fair value	(44.0)	(22.1)
Fair Value, Measurements, Recurring | Level 2
Assets:
Pension plan investments	0.0	0.0
Assets, Fair Value Disclosure	0.0	0.0
Derivative liabilities:
Total derivative liabilities	0.0	0.0
RINs Obligation	(240.4)	(129.4)
Precious metals lease	0.0	0.0
Liability Awards	0.0	0.0
Total recurring liabilities at fair value	(240.4)	(129.4)
Fair Value, Measurements, Recurring | Level 3
Assets:
Pension plan investments	0.0	0.0
Assets, Fair Value Disclosure	0.0	0.0
Derivative liabilities:
Total derivative liabilities	20.0	3.5
RINs Obligation	0.0	0.0
Precious metals lease	0.0	0.0
Liability Awards	0.0	0.0
Total recurring liabilities at fair value	(20.0)	(3.5)
WCS crude oil basis swaps | Fair Value, Measurements, Recurring
Derivative liabilities:
Total derivative liabilities	0.0	(1.3)
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 1
Derivative liabilities:
Total derivative liabilities	0.0	0.0
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 2
Derivative liabilities:
Total derivative liabilities	0.0	0.0
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 3
Derivative liabilities:
Total derivative liabilities	0.0	(1.3)
Inventory Financing Obligations | Fair Value, Measurements, Recurring
Derivative liabilities:
Total derivative liabilities	20.0	2.2
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 1
Derivative liabilities:
Total derivative liabilities	0.0	0.0
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 2
Derivative liabilities:
Total derivative liabilities	0.0	0.0
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 3
Derivative liabilities:
Total derivative liabilities	$ 20.0	$ (2.2)

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Fair Value Measurements - Summary of Net Changes in Fair Value of the Company's Level 3 Financial Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Realized (gain) loss on derivative instruments	$ (3.3)	$ 7.9	$ (15.4)	$ 57.7
Unrealized gain (loss) on derivative instruments	(3.3)	(9.2)	(16.5)	21.2
Total derivative liabilities	20.0		20.0		$ 3.5
Total derivative assets	0.0		0.0		0.0
Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	20.0		20.0		3.5
Precious metals lease	7.1		7.1		7.9
Fair Value, Measurements, Recurring | Inventory Financing Obligations
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	20.0		20.0		2.2
WCS crude oil basis swaps | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		(1.3)
Level 3
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Fair value at January 1,			(3.5)	(6.3)
Realized (gain) loss on derivative instruments			1.1	36.5
Unrealized gain (loss) on derivative instruments			(16.5)	21.2
Settlements			1.1	36.5
Fair value at June 30,	(20.0)	$ 14.9	(20.0)	$ 14.9
Level 3 | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	20.0		20.0		3.5
Precious metals lease	0.0		0.0		0.0
Level 3 | Fair Value, Measurements, Recurring | Inventory Financing Obligations
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	20.0		20.0		(2.2)
Level 3 | WCS crude oil basis swaps | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		(1.3)
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		0.0
Precious metals lease	7.1		7.1		7.9
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring | Inventory Financing Obligations
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		0.0
Fair Value, Inputs, Level 1 [Member] | WCS crude oil basis swaps | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		0.0
Level 2 | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		0.0
Precious metals lease	0.0		0.0		0.0
Level 2 | Fair Value, Measurements, Recurring | Inventory Financing Obligations
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	0.0		0.0		0.0
Level 2 | WCS crude oil basis swaps | Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	$ 0.0		$ 0.0		$ 0.0

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Fair Value Measurements - Summary of the Company's Carrying and Estimated Fair Value of the Company's Financial Instruments, Carried at Adjusted Historical Cost (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Asset financing arrangement	$ 66.4	$ 0.0
Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Asset financing arrangement	66.4	0.0
Finance lease and other obligations	5.2	6.0
Fair Value, Inputs, Level 3 | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Asset financing arrangement	65.0	0.0
Finance lease and other obligations	5.2	6.0
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	403.4	468.6
Fair Value, Inputs, Level 1 [Member] | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	401.7	471.9
Level 2 | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	816.0	780.8
Level 2 | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	741.4	739.6
Revolving Credit Facility | Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Lines of Credit, Fair Value Disclosure	48.1	108.0
Revolving Credit Facility | Fair Value, Inputs, Level 3 | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Lines of Credit, Fair Value Disclosure	$ 46.1	$ 104.8

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Earnings Per Unit - Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
General partner’s interest in net loss	$ 1.0	$ (1.1)	$ (3.5)	$ (1.3)
Net income (loss) available to limited partners	$ 50.5	$ (55.0)	$ (169.5)	$ (65.6)
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	47,138	0	0	0
Weighted Average Number of Shares Outstanding, Diluted	78,971,518	78,743,083	78,831,988	78,602,651
Weighted Average Number of Shares Outstanding, Basic	78,924,380	78,743,083	78,831,988	78,602,651
Limited partners' interest	$ 0.64	$ (0.70)	$ (2.15)	$ (0.83)
Limited partners’ interest	$ 0.64	$ (0.70)	$ (2.15)	$ (0.83)
Continuing Operations
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
General partner’s interest in net loss		$ (1.1)		$ (1.3)

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Segments and Related Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Sales	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3
Adjusted EBITDA	(58.8)	(34.7)	(85.7)	(183.5)
Reconciling items to net loss:
Depreciation and amortization	30.5	30.2	90.9	91.5
Effect of LIFO liquidation and Inventory write-down	(4.7)	1.1	(45.1)	35.5
Unrealized (gain) loss on derivatives	3.3	9.2	16.5	(21.2)
RINs mark-to-market	(66.9)	9.3	56.3	33.4
Other Nonrecurring (Income) Expense		5.5	2.8	4.3
Interest expense	(38.2)	(33.3)	(109.3)	(93.2)
(Gain) loss on debt extinguishment			(0.4)
Loss on impairment and disposal of assets			1.9	6.7
Gain (Loss) on Disposition of Business	(0.2)		(0.2)
Interest Income (Expense), Net		33.3		93.2
Equity-based compensation and other items	6.7	2.1	24.4	6.2
Income tax expense from continuing operations	0.4	0.1	1.5	0.8
Net income	51.5	(56.1)	(173.0)	(66.9)
Payments to Acquire Productive Assets	25.8	10.3	75.1	54.5
Property, Plant and Equipment, Net	903.7	932.9	903.7	932.9	$ 919.8
External Customers [Member]
Segment Reporting Information [Line Items]
Sales	874.9	568.0	2,282.2	1,714.3
Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Specialty Product [Member]
Reconciling items to net loss:
Payments to Acquire Productive Assets	8.5	6.3	45.4	42.8
Property, Plant and Equipment, Net	382.4	412.3	382.4	412.3
Fuel Product [Member]
Reconciling items to net loss:
Payments to Acquire Productive Assets	0.9	0.5	2.0	1.3
Property, Plant and Equipment, Net	34.0	34.5	34.0	34.5
Corporate Segment [Member]
Reconciling items to net loss:
Payments to Acquire Productive Assets	0.0	0.1	0.0	0.5
Property, Plant and Equipment, Net	10.6	17.6	10.6	17.6
Montana/Renewables
Reconciling items to net loss:
Payments to Acquire Productive Assets	16.4	3.4	27.7	9.9
Property, Plant and Equipment, Net	476.7	468.5	476.7	468.5
Eliminations
Reconciling items to net loss:
Payments to Acquire Productive Assets	0.0	0.0	0.0	0.0
Property, Plant and Equipment, Net	0.0	0.0	0.0	0.0
Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales		(3.4)	(13.2)	(10.0)
Operating Segments [Member] | Specialty Product [Member]
Segment Reporting Information [Line Items]
Sales	588.6	369.5	1,520.6	1,166.3
Adjusted EBITDA	(46.3)	(23.2)	(75.9)	(125.6)
Reconciling items to net loss:
Depreciation and amortization	16.7	14.8	49.3	45.6
Effect of LIFO liquidation and Inventory write-down	(0.8)	0.5	(29.7)	31.2
Unrealized (gain) loss on derivatives	2.8	(8.2)	14.5	11.7
RINs mark-to-market	(42.8)	6.4	38.8	24.3
Interest expense	(6.0)		(12.7)
(Gain) loss on debt extinguishment			0.0
Loss on impairment and disposal of assets			1.8	0.2
Gain (Loss) on Disposition of Business	(0.2)		(0.2)
Interest Income (Expense), Net		1.3		0.1
Operating Segments [Member] | Specialty Product [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	583.5	366.2	1,507.4	1,156.6
Operating Segments [Member] | Specialty Product [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	5.1	3.3	13.2	9.7
Operating Segments [Member] | Fuel Product [Member]
Segment Reporting Information [Line Items]
Sales	63.0	61.0	194.4	177.6
Adjusted EBITDA	(6.8)	(18.9)	(30.1)	(47.1)
Reconciling items to net loss:
Depreciation and amortization	3.4	4.0	10.2	12.0
Effect of LIFO liquidation and Inventory write-down	(2.9)	1.3	(3.4)	1.3
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Interest expense	(0.2)		(0.3)
(Gain) loss on debt extinguishment			0.0
Loss on impairment and disposal of assets			0.0	1.4
Gain (Loss) on Disposition of Business	0.0		0.0
Interest Income (Expense), Net		0.1		0.3
Operating Segments [Member] | Fuel Product [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	63.0	60.9	194.4	177.3
Operating Segments [Member] | Fuel Product [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.1	0.0	0.3
Operating Segments [Member] | Corporate Segment [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Adjusted EBITDA	(18.7)	17.1	55.5	54.1
Reconciling items to net loss:
Depreciation and amortization	1.9	1.9	5.9	5.7
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Interest expense	(30.1)		(92.8)
(Gain) loss on debt extinguishment			(0.4)
Loss on impairment and disposal of assets			0.0	5.1
Gain (Loss) on Disposition of Business	0.0		0.0
Interest Income (Expense), Net		31.1		92.9
Operating Segments [Member] | Corporate Segment [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Operating Segments [Member] | Corporate Segment [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Operating Segments [Member] | Montana/Renewables
Segment Reporting Information [Line Items]
Sales	228.4	140.9	580.4	380.4
Adjusted EBITDA	(24.4)	(9.7)	(35.2)	(64.9)
Reconciling items to net loss:
Depreciation and amortization	8.5	9.5	25.5	28.2
Effect of LIFO liquidation and Inventory write-down	(1.0)	(0.7)	(12.0)	3.0
Unrealized (gain) loss on derivatives	0.5	(1.0)	2.0	9.5
RINs mark-to-market	(24.1)	2.9	17.5	9.1
Interest expense	(1.9)		(3.5)
(Gain) loss on debt extinguishment			0.0
Loss on impairment and disposal of assets			0.1	0.0
Gain (Loss) on Disposition of Business	0.0		0.0
Interest Income (Expense), Net		0.8		0.1
Operating Segments [Member] | Montana/Renewables | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	228.4	140.9	580.4	380.4
Operating Segments [Member] | Montana/Renewables | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	(5.1)
Adjusted EBITDA	0.0	0.0	0.0	0.0
Reconciling items to net loss:
Depreciation and amortization	0.0	0.0	0.0	0.0
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Interest expense	0.0	0.0	0.0	0.0
(Gain) loss on debt extinguishment			0.0
Loss on impairment and disposal of assets			0.0	0.0
Gain (Loss) on Disposition of Business	0.0		0.0
Eliminations [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Eliminations [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	(5.1)	(3.4)	(13.2)	(10.0)
Oil and Gas, Refining and Marketing [Member]
Segment Reporting Information [Line Items]
Sales	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3

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Segments and Related Information - Schedule of Major Product Category Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Major product category sales
Sales	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3
Adjusted EBITDA	58.8	34.7	85.7	183.5
Depreciation and amortization	30.5	30.2	90.9	91.5
Effect of LIFO liquidation and Inventory write-down	(4.7)	1.1	(45.1)	35.5
Asset Impairment Charges			1.9	6.7
Interest expense	38.2	33.3	109.3	93.2
Unrealized (gain) loss on derivatives	3.3	9.2	16.5	(21.2)
Other Nonrecurring (Income) Expense		5.5	2.8	4.3
Non-cash equity based compensation	6.7	2.1	24.4	6.2
Income tax expense from continuing operations	0.4	0.1	1.5	0.8
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	$ 51.5	$ (56.1)	(173.0)	$ (66.9)
(Gain) loss on debt extinguishment			$ 0.4
Product Concentration Risk [Member] | Sales
Major product category sales
Sales, percentage	100.00%	100.00%	100.00%	100.00%
Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 583.5	$ 366.2	$ 1,507.4	$ 1,156.6
Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	66.70%	64.50%	66.10%	67.50%
Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 63.0	$ 60.9	$ 194.4	$ 177.3
Product Concentration Risk [Member] | Fuel Product [Member] | Sales
Major product category sales
Sales, percentage	7.20%	10.70%	8.50%	10.30%
Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 228.4	$ 140.9	$ 580.4	$ 380.4
Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	26.10%	24.80%	25.40%	22.20%
Lubricating Oils [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 192.0	$ 122.5	$ 482.2	$ 352.5
Lubricating Oils [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	21.90%	21.60%	21.10%	20.60%
Solvents [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 81.7	$ 54.6	$ 223.0	$ 179.0
Solvents [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	9.30%	9.60%	9.80%	10.40%
Waxes [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 40.6	$ 33.8	$ 110.1	$ 92.2
Waxes [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	4.70%	6.00%	4.90%	5.40%
Other [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 269.2	$ 155.3	$ 692.1	$ 532.9
Other [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	30.80%	27.30%	30.30%	31.10%
Gasoline [Member] | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 53.9	$ 38.8	$ 137.4	$ 103.0
Gasoline [Member] | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	6.20%	6.80%	6.00%	6.00%
Diesel [Member] | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 92.6	$ 50.9	$ 241.7	$ 150.3
Diesel [Member] | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	10.50%	9.00%	10.60%	8.80%
Jet fuel [Member] | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 8.6	$ 3.7	$ 21.0	$ 11.7
Jet fuel [Member] | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	1.00%	0.60%	0.90%	0.70%
Oil and Gas, Refining and Marketing [Member]
Major product category sales
Sales	$ 874.9	$ 568.0	$ 2,282.2	$ 1,714.3
Oil and Gas, Refining and Marketing [Member] | Product Concentration Risk [Member]
Major product category sales
Sales	874.9	568.0	2,282.2	1,714.3
asphalt, heavy fuel oils and other | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 73.3	$ 47.5	$ 180.3	$ 115.4
asphalt, heavy fuel oils and other | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	8.40%	8.40%	7.90%	6.70%
Operating Segments [Member]
Major product category sales
Sales		$ (3.4)	$ (13.2)	$ (10.0)
Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 588.6	369.5	1,520.6	1,166.3
Adjusted EBITDA	46.3	23.2	75.9	125.6
Depreciation and amortization	16.7	14.8	49.3	45.6
Effect of LIFO liquidation and Inventory write-down	(0.8)	0.5	(29.7)	31.2
Asset Impairment Charges			1.8	0.2
Interest expense	6.0		12.7
Unrealized (gain) loss on derivatives	2.8	(8.2)	14.5	11.7
(Gain) loss on debt extinguishment			0.0
Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	63.0	61.0	194.4	177.6
Adjusted EBITDA	6.8	18.9	30.1	47.1
Depreciation and amortization	3.4	4.0	10.2	12.0
Effect of LIFO liquidation and Inventory write-down	(2.9)	1.3	(3.4)	1.3
Asset Impairment Charges			0.0	1.4
Interest expense	0.2		0.3
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
(Gain) loss on debt extinguishment			0.0
Operating Segments [Member] | Corporate Segment [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Adjusted EBITDA	18.7	(17.1)	(55.5)	(54.1)
Depreciation and amortization	1.9	1.9	5.9	5.7
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Asset Impairment Charges			0.0	5.1
Interest expense	30.1		92.8
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
(Gain) loss on debt extinguishment			0.4
Operating Segments [Member] | Montana/Renewables
Major product category sales
Sales	228.4	140.9	580.4	380.4
Adjusted EBITDA	24.4	9.7	35.2	64.9
Depreciation and amortization	8.5	9.5	25.5	28.2
Effect of LIFO liquidation and Inventory write-down	(1.0)	(0.7)	(12.0)	3.0
Asset Impairment Charges			0.1	0.0
Interest expense	1.9		3.5
Unrealized (gain) loss on derivatives	0.5	(1.0)	2.0	9.5
(Gain) loss on debt extinguishment			0.0
Eliminations [Member]
Major product category sales
Sales	(5.1)
Adjusted EBITDA	0.0	0.0	0.0	0.0
Depreciation and amortization	0.0	0.0	0.0	0.0
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Asset Impairment Charges			0.0	0.0
Interest expense	0.0	0.0	0.0	0.0
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
(Gain) loss on debt extinguishment			0.0
External Customers [Member]
Major product category sales
Sales	874.9	568.0	2,282.2	1,714.3
External Customers [Member] | Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	583.5	366.2	1,507.4	1,156.6
External Customers [Member] | Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	63.0	60.9	194.4	177.3
External Customers [Member] | Operating Segments [Member] | Corporate Segment [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
External Customers [Member] | Operating Segments [Member] | Montana/Renewables
Major product category sales
Sales	228.4	140.9	580.4	380.4
External Customers [Member] | Eliminations [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Eliminations [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Eliminations [Member] | Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	5.1	3.3	13.2	9.7
Eliminations [Member] | Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	0.0	0.1	0.0	0.3
Eliminations [Member] | Operating Segments [Member] | Corporate Segment [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Eliminations [Member] | Operating Segments [Member] | Montana/Renewables
Major product category sales
Sales	0.0	0.0	0.0	0.0
Eliminations [Member] | Eliminations [Member]
Major product category sales
Sales	$ (5.1)	$ (3.4)	$ (13.2)	$ (10.0)

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Segments and Related Information - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) supplier	Sep. 30, 2020 USD ($) supplier	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Number of customers representing 10% or greater of consolidated sales			no	no
number of major suppliers	2	2	2	2
Disclosure on Geographic Areas, Description of Revenue from External Customers	ten percent	ten percent	ten percent	ten percent
Adjusted EBITDA	$ 58.8	$ 34.7	$ 85.7	$ 183.5
Depreciation and amortization	30.5	30.2	90.9	91.5
Effect of LIFO liquidation and Inventory write-down	(4.7)	1.1	(45.1)	35.5
Loss on impairment and disposal of assets			1.9	6.7
Interest Income (Expense), Net		33.3		93.2
Interest expense	38.2	33.3	109.3	93.2
Unrealized (gain) loss on derivatives	3.3	9.2	16.5	(21.2)
RINs mark-to-market	(66.9)	9.3	56.3	33.4
Other Nonrecurring (Income) Expense		5.5	2.8	4.3
Equity-based compensation and other items	6.7	2.1	24.4	6.2
Income tax expense from continuing operations	0.4	0.1	1.5	0.8
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	51.5	(56.1)	(173.0)	(66.9)
Sales	874.9	568.0	2,282.2	1,714.3
Property, Plant and Equipment, Net	903.7	932.9	903.7	932.9	$ 919.8
Payments to Acquire Productive Assets	25.8	10.3	75.1	54.5
External Customers [Member]
Segment Reporting Information [Line Items]
Sales	874.9	568.0	2,282.2	1,714.3
Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales		(3.4)	(13.2)	(10.0)
Eliminations [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	0.0	0.0	0.0	0.0
Depreciation and amortization	0.0	0.0	0.0	0.0
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Loss on impairment and disposal of assets			0.0	0.0
Interest expense	0.0	0.0	0.0	0.0
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Sales	(5.1)
Eliminations [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	10.6	17.6	10.6	17.6
Payments to Acquire Productive Assets	0.0	0.1	0.0	0.5
Corporate Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	18.7	(17.1)	(55.5)	(54.1)
Depreciation and amortization	1.9	1.9	5.9	5.7
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Loss on impairment and disposal of assets			0.0	5.1
Interest Income (Expense), Net		31.1		92.9
Interest expense	30.1		92.8
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Sales	0.0	0.0	0.0	0.0
Corporate Segment [Member] | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Montana/Renewables
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	476.7	468.5	476.7	468.5
Payments to Acquire Productive Assets	16.4	3.4	27.7	9.9
Montana/Renewables | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	24.4	9.7	35.2	64.9
Depreciation and amortization	8.5	9.5	25.5	28.2
Effect of LIFO liquidation and Inventory write-down	(1.0)	(0.7)	(12.0)	3.0
Loss on impairment and disposal of assets			0.1	0.0
Interest Income (Expense), Net		0.8		0.1
Interest expense	1.9		3.5
Unrealized (gain) loss on derivatives	0.5	(1.0)	2.0	9.5
RINs mark-to-market	(24.1)	2.9	17.5	9.1
Sales	228.4	140.9	580.4	380.4
Montana/Renewables | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	228.4	140.9	580.4	380.4
Specialty Product [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	382.4	412.3	382.4	412.3
Payments to Acquire Productive Assets	8.5	6.3	45.4	42.8
Specialty Product [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	46.3	23.2	75.9	125.6
Depreciation and amortization	16.7	14.8	49.3	45.6
Effect of LIFO liquidation and Inventory write-down	(0.8)	0.5	(29.7)	31.2
Loss on impairment and disposal of assets			1.8	0.2
Interest Income (Expense), Net		1.3		0.1
Interest expense	6.0		12.7
Unrealized (gain) loss on derivatives	2.8	(8.2)	14.5	11.7
RINs mark-to-market	(42.8)	6.4	38.8	24.3
Sales	588.6	369.5	1,520.6	1,166.3
Specialty Product [Member] | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	583.5	366.2	1,507.4	1,156.6
Fuel Product [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	34.0	34.5	34.0	34.5
Payments to Acquire Productive Assets	0.9	0.5	2.0	1.3
Fuel Product [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	6.8	18.9	30.1	47.1
Depreciation and amortization	3.4	4.0	10.2	12.0
Effect of LIFO liquidation and Inventory write-down	(2.9)	1.3	(3.4)	1.3
Loss on impairment and disposal of assets			0.0	1.4
Interest Income (Expense), Net		0.1		0.3
Interest expense	0.2		0.3
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Sales	63.0	61.0	194.4	177.6
Fuel Product [Member] | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	63.0	60.9	194.4	177.3
Eliminations
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	0.0	0.0	0.0	0.0
Payments to Acquire Productive Assets	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Supplier Concentration Risk [Member] | percentage | two
Segment Reporting Information [Line Items]
Percentage of crude oil supply from 2 suppliers	92.40%	88.60%	89.20%	82.20%

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Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Loss on impairment and disposal of assets	$ 1.9	$ 6.7
Asset financing arrangement	66.4		$ 0.0
Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement [Member]
Schedule of Equity Method Investments [Line Items]
Asset financing arrangement	$ 66.4		$ 0.0

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Subsequent Events (Details) - USD ($) $ in Millions	Nov. 01, 2021	Sep. 30, 2021
Subsequent Event [Member]
Subsequent Event [Line Items]
Fair Value of Derivative Measurement Date	Nov. 01, 2021
Increase (Decrease) in Derivative Assets and Liabilities	$ 4.5
7.625% Notes
Subsequent Event [Line Items]
Fixed rate		7.625%

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Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Accounting Policies [Abstract]
increase to cost of sales	$ 28.1	$ 83.7