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 JUNE 30, 2022

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	The Nasdaq Stock Market LLC

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 August 5, 2022, there were 79,150,108 common units outstanding.

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

QUARTERLY REPORT

For the Three and Six Months Ended June 30, 2022

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	35
Item 3. Quantitative and Qualitative Disclosures About Market Risk	54
Item 4. Controls and Procedures	56
Part II
Item 1. Legal Proceedings	57
Item 1A. Risk Factors	57
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 3. Defaults Upon Senior Securities	57
Item 4. Mine Safety Disclosures	57
Item 5. Other Information	57
Item 6. Exhibits	58

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 “will,” “may,” “intend,” “believe,” “expect,” “outlook,” “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 energy shortage on our business and operations; (ii) demand for finished 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, and the outcome of any litigation concerning our existing small refinery exemption (“SRE”) petitions; (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) general economic and political conditions, including inflationary pressures, general economic slowdown or a recession, political tensions, conflicts and war (such as the ongoing conflict in Ukraine and its regional and global ramifications); (x) the future effectiveness of our enterprise resource planning system to further enhance operating efficiencies and provide more effective management of our business operations; and (xi) our ability to convert a significant portion of our Great Falls refinery into a renewable diesel manufacturing facility, 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, 2021 (“2021 Annual Report”). Certain public statements made by us and our representatives on the date hereof may also contain forward-looking statements, which are qualified in their entirety by the cautionary statements contained in this paragraph. 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

	June 30, 2022		December 31, 2021
	(Unaudited)
	(In millions, except unit data)
ASSETS
Current assets:
Cash and cash equivalents	$	27.5	$	38.1
Accounts receivable
Trade, less allowance for credit losses of $4.1 million and $2.0 million, respectively	373.7		216.8
Other	27.9		36.2
	401.6		253.0
Inventories	325.5		326.6
Prepaid expenses and other current assets	19.5		14.9
Total current assets	774.1		632.6
Property, plant and equipment, net	1,149.7		949.7
Restricted cash	—		83.8
Other noncurrent assets, net	429.9		461.8
Total assets	$	2,353.7	$	2,127.9
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	473.5	$	301.0
Accrued interest payable	34.4		27.7
Accrued salaries, wages and benefits	49.8		93.7
Obligations under inventory financing agreements	197.7		173.0
Current portion of RINs obligation	392.9		200.1
Derivative liabilities	39.0		—
Other current liabilities	102.9		96.9
Current portion of long-term debt	7.5		7.4
Total current liabilities	1,297.7		899.8
Other long-term liabilities	91.0		115.6
Long-term RINs obligation, less current portion	—		78.8
Long-term debt, less current portion	1,442.6		1,418.8
Total liabilities	$	2,831.3	$	2,513.0
Commitments and contingencies
Partners’ capital (deficit):
Limited partners’ interest 79,150,108 units and 78,676,262 units issued and outstanding as of June 30, 2022 and December 31, 2021, respectively	$	(469.2)	$	(378.8)
General partner’s interest	1.6		3.8
Accumulated other comprehensive loss	(10.0)		(10.1)
Total partners’ capital (deficit)	(477.6)		(385.1)
Total liabilities and partners’ capital (deficit)	$	2,353.7	$	2,127.9

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions, except per unit and unit data)
Sales	$	1,424.0	$	807.0	$	2,521.9	$	1,407.3
Cost of sales	1,280.1		787.9		2,345.3		1,430.2
Gross profit (loss)	143.9		19.1		176.6		(22.9)
Operating costs and expenses:
Selling	16.2		14.5		28.8		27.6
General and administrative	22.5		29.7		55.1		66.4
Other operating expense	9.5		8.4		14.3		23.3
Operating income (loss)	95.7		(33.5)		78.4		(140.2)
Other expense:
Interest expense	(42.6)		(36.9)		(94.2)		(71.1)
Loss on derivative instruments	(67.6)		(6.9)		(89.7)		(12.1)
Other expense	(0.2)		(0.2)		(4.0)		—
Total other expense	(110.4)		(44.0)		(187.9)		(83.2)
Net loss before income taxes	(14.7)		(77.5)		(109.5)		(223.4)
Income tax expense	0.6		0.9		1.3		1.1
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Allocation of net loss
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Less:
General partner’s interest in net loss	(0.3)		(1.6)		(2.2)		(4.5)
Net loss attributable to limited partners	$	(15.0)	$	(76.8)	$	(108.6)	$	(220.0)
Weighted average limited partner units outstanding:
Basic and diluted	79,424,383		78,929,561		79,241,515		78,782,802
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.19)	$	(0.97)	$	(1.37)	$	(2.79)

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Other comprehensive income:
Defined benefit pension and retiree health benefit plans	—		0.1		0.1		0.2
Total other comprehensive income	—		0.1		0.1		0.2
Comprehensive loss attributable to partners’ capital (deficit)	$	(15.3)	$	(78.3)	$	(110.7)	$	(224.3)

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 March 31, 2022	$	(10.0)	$	1.9	$	(455.7)	$	(463.8)
Net loss	—		(0.3)		(15.0)		(15.3)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(0.5)		(0.5)
Settlement of phantom units	—		—		0.4		0.4
Amortization of phantom units	—		—		1.6		1.6
Balance at June 30, 2022	$	(10.0)	$	1.6	$	(469.2)	$	(477.6)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at December 31, 2021	$	(10.1)	$	3.8	$	(378.8)	$	(385.1)
Other comprehensive income	0.1		—		—		0.1
Net loss	—		(2.2)		(108.6)		(110.8)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(4.1)		(4.1)
Settlement of phantom units	—		—		6.6		6.6
Modification of phantom units	—		—		13.5		13.5
Amortization of phantom units	—		—		2.2		2.2
Balance at June 30, 2022	$	(10.0)	$	1.6	$	(469.2)	$	(477.6)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at March 31, 2021	$	(12.2)	$	6.1	$	(267.4)	$	(273.5)
Other comprehensive income	0.1		—		—		0.1
Net loss	—		(1.6)		(76.8)		(78.4)
Amortization of phantom units	—		—		0.1		0.1
Balance at June 30, 2021	$	(12.1)	$	4.5	$	(344.1)	$	(351.7)

	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	0.2		—		—		0.2
Net loss	—		(4.5)		(220.0)		(224.5)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(0.6)		(0.6)
Amortization of phantom units	—		—		1.8		1.8
Balance at June 30, 2021	$	(12.1)	$	4.5	$	(344.1)	$	(351.7)

See accompanying notes to unaudited condensed consolidated financial statements.

7

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30,
	2022		2021
	(In millions)
Operating activities
Net loss	$	(110.8)	$	(224.5)
Non-cash RINs expense	114.0		144.0
Unrealized loss on derivative instruments	75.6		13.2
Other non-cash activities	54.1		44.0
Changes in assets and liabilities	(46.1)		(66.0)
Net cash provided by (used in) operating activities	86.8		(89.3)
Investing activities
Additions to property, plant and equipment	(178.8)		(16.7)
Other investing activities	0.2		—
Net cash used in investing activities	(178.6)		(16.7)
Financing activities
Proceeds from borrowings — revolving credit facility	650.0		539.6
Repayments of borrowings — revolving credit facility	(650.0)		(574.3)
Proceeds from borrowings — senior notes	325.0		—
Repayments of borrowings — senior notes	(325.0)		(70.0)
Proceeds from inventory financing	1,008.4		420.8
Payments on inventory financing	(1,014.4)		(347.6)
Proceeds from other financing obligations	16.7		70.0
Other financing activities	(13.3)		(7.4)
Net cash provided by (used in) financing activities	(2.6)		31.1
Net decrease in cash, cash equivalents and restricted cash	(94.4)		(74.9)
Cash, cash equivalents and restricted cash at beginning of period	121.9		109.4
Cash and cash equivalents at end of period	$	27.5	$	34.5
Supplemental disclosure of non-cash investing activities
Non-cash property, plant and equipment additions	$	116.6	$	5.7

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 June 30, 2022, the Company had 79,150,108 limited partner common units and 1,615,307 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2021 Annual Report on Form 10-K.

2. 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.

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash include all highly liquid investments with a maturity of three months or less at the time of purchase.

Restricted cash represents cash that is legally restricted under the MRL Credit Facility, and it is presented as a non-current asset because it is only available for capital additions related to the renewable diesel project.

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 volume obligations for the percentage of renewable fuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of transportation fuels from petroleum, the Company is subject to those obligations. 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 obligations.

9

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 RINs obligation in the condensed consolidated balance sheets. As of June 30, 2022, the Company’s RINs obligation for all outstanding compliance years is presented as a current liability in the condensed consolidated balance sheets. For the year ended December 31, 2021, the Company’s RINs obligations for compliance years 2019 and 2020 was presented as a current liability in the condensed consolidated balance sheets and the Company’s RINs obligation for compliance year 2021 was presented as a long-term liability in the condensed consolidated balance sheets. This 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 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 6 - “Commitments and Contingencies” for further information on the Company’s RINs obligation.

3. 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, 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 intermediates. Further, the Company 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 and control of the promised goods are transferred to the customer. 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 continue 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 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.

10

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 June 30, 2022 and December 31, 2021 were $373.7 million and $216.8 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.

4. 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 six months ended June 30, 2022 and 2021, 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 $186.5 million and $64.9 million higher than the carrying value of inventory as of June 30, 2022 and December 31, 2021, 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 7 - “Inventory Financing Agreements” related to the Great Falls and Shreveport refineries, respectively.

Inventories consist of the following (in millions):

	June 30, 2022						December 31, 2021
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	42.0	$	20.9	$	62.9	$	41.0	$	19.9	$	60.9
Work in process	60.9		23.4		84.3		52.5		28.5		81.0
Finished goods	125.0		53.3		178.3		121.1		63.6		184.7
	$	227.9	$	97.6	$	325.5	$	214.6	$	112.0	$	326.6

(1)Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 7 - “Inventory Financing Agreements” for further information.

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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 June 30, 2022 and 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $1.2 million and $17.7 million, respectively. During the six months ended June 30, 2022 and 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $7.2 million and $40.4 million, respectively.

5. 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 17 years, some of which include options to extend the lease for up to 33 years, and some of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases for the periods presented were as follows (in millions):

		June 30, 2022		December 31, 2021
Assets:	Classification:
Operating lease assets	Other noncurrent assets, net	$	129.3	$	157.7
Finance lease assets	Property, plant and equipment, net (1)	2.9		4.2
Total leased assets		$	132.2	$	161.9
Liabilities:
Current
Operating	Other current liabilities	$	66.8	$	65.1
Finance	Current portion of long-term debt	0.8		0.8
Non-current
Operating	Other long-term liabilities	63.2		93.1
Finance	Long-term debt, less current portion	2.7		3.2
Total lease liabilities		$	133.5	$	162.2

(1)Finance lease assets are recorded net of accumulated amortization of $3.8 million and $4.1 million as of June 30, 2022 and December 31, 2021, respectively.

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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 periods presented were as follows (in millions).

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Costs:	Classification:	2022		2021		2022		2021
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	18.8	$	11.8	$	37.5	$	23.6
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.8		2.2		3.8		4.0
Variable operating lease cost (2)	Cost of Sales; SG&A Expenses	5.3		2.7		6.0		6.4
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.2		0.1		0.4		0.3
Interest on lease liabilities	Interest expense	0.1		0.1		1.2		0.2
Total lease cost		$	26.2	$	16.9	$	48.9	$	34.5

(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 June 30, 2022, 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
2022	$	37.3	$	0.6	$	37.9
2023	71.2		1.0		72.2
2024	12.5		1.0		13.5
2025	8.3		0.7		9.0
2026	3.8		0.6		4.4
Thereafter	9.6		0.2		9.8
Total	$	142.7	$	4.1	$	146.8
Less: Interest	12.7		0.6		13.3
Present value of lease liabilities	$	130.0	$	3.5	$	133.5
Less obligations due within one year	66.8		0.8		67.6
Long-term lease obligation	$	63.2	$	2.7	$	65.9

(1)As of June 30, 2022, 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 June 30, 2022.

(2)As of June 30, 2022, 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 June 30, 2022.

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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:

	June 30, 2022		December 31, 2021
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	2.8		3.1
Finance leases	4.3		4.8
Weighted-average discount rate:
Operating leases	6.9	%	7.0	%
Finance leases	7.3	%	7.3	%

6. 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 specialty 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 volume blending requirements, and Calumet applied for SREs for 2019 and 2020 compliance years. On January 19, 2021, the Company filed lawsuits against 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. Both cases were stayed through June 30, 2022. The Company intends to file a second amended and supplemental complaint in both cases.

Subsequent to the Company filing those lawsuits, EPA extended the deadlines for 2019 RFS compliance on several occasions, most recently January 27, 2022. The current deadlines are as follows:

Compliance Year	Annual Compliance Report Due Date	RINs Retirement Due Date	Third Party Certification Due Date
2019	September 1, 2022	December 1, 2022	June 1, 2023
2020	December 1, 2022	February 1, 2023	June 1, 2023
2021	March 31, 2023	June 30, 2023	June 1, 2023
2022	Next quarterly reporting deadline after either the effective date of the 2023 standards or June 1, 2023, whichever is later	t + 90 days	Next June 1 annual attest engagement reporting deadline after the 2022 compliance reporting deadline

These deadlines may change through further regulatory action by EPA, including if EPA finalizes the proposed alternate compliance approach for small refineries, described below.

In April 2022, EPA issued new decisions denying 36 petitions from small refineries seeking SREs for program year 2018 that had been remanded by the U.S. Court of Appeals for the District of Columbia Circuit to EPA for reconsideration. EPA had previously granted 31 of these 36 petitions in August 2019, including petitions from the Company. Concurrent with the denial action, EPA provided an alternate compliance approach to allow these 31 small refineries to meet their 2018 compliance obligations without purchasing or redeeming additional RFS credits. In April 2022, the Company filed a petition for review of EPA’s denial of the 2018 SRE petition for the Shreveport refinery in the U.S. Court of Appeals for the Fifth Circuit. In June 2022, the Company filed a petition for review of EPA’s denial of the 2018 SRE petition for the Montana refinery in the U.S. Court of Appeals for the Ninth Circuit and filed a petition for review in the U.S. Court of Appeals for the D.C. Circuit challenging both of the EPA’s denials. In June 2022, Growth Energy filed an appeal in the U.S. Court of Appeals for the D.C. Circuit challenging the EPA’s decision to provide the alternate compliance approach to allow the 31 small refineries to meet their 2018 compliance obligations. The Company, along with other small refineries, has intervened in the Growth Energy appeal.

In June 2022, EPA issued final decisions denying all other pending petitions from small refineries seeking SREs, including petitions submitted by the Company seeking exemptions for program years 2019 and 2020, based on an across the board determination that no refinery suffers disproportionate hardship from the RFS program. Concurrent with the denial action, EPA proposed an alternate compliance approach for small refineries that, if finalized, would provide the small refineries more time to comply with their 2020 RFS obligations, including any RIN deficits from 2019 that are carried forward to the 2020 compliance year. Public comments on this proposal were due by July 28, 2022.

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 June 30, 2022 and December 31, 2021, the Company had a RINs Obligation recorded on the condensed consolidated balance sheets of $392.9 million and $278.9 million, respectively. Please read Note 2 - “Summary of Significant Accounting Policies” for additional information.

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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 June 30, 2022 and December 31, 2021, the Company had outstanding standby letters of credit of $43.9 million and $32.7 million, respectively, under its senior secured revolving credit facility (the “revolving credit facility”). Please read Note 8 - “Long-Term Debt” for additional information regarding the Company’s revolving credit facility. At June 30, 2022 and December 31, 2021, 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 $255.0 million and $300.0 million, respectively, which may be increased with the consent of the Agent (as defined in the Credit Agreement) to 90% of revolver commitments then in effect ($500.0 million at June 30, 2022 and $600.0 million at December 31, 2021).

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.

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As of June 30, 2022, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2022	$	2.0
2023	3.9
2024	4.0
2025	4.0
2026	4.0
Thereafter	2.4
Total (1)	$	20.3

(1)As of June 30, 2022, 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.

7. Inventory Financing Agreements

The Company is party to several agreements with Macquarie to support the operations of the Great Falls refinery and the Shreveport refinery (as amended, the “Supply and Offtake Agreements”). Both agreements 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 June 30, 2022 and 2021, the Company incurred an expense of $4.8 million and $3.3 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 six months ended June 30, 2022 and 2021, the Company incurred an expense of $16.3 million and $4.7 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.

The Company has provided cash collateral of $19.9 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 June 30, 2022 and December 31, 2021, the Company had $27.9 million and $17.0 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 June 30, 2022.

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8. Long-Term Debt

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

	June 30, 2022		December 31, 2021
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2028, weighted average interest rates of 3.3% and 2.4% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	$	—	$	—
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% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	—		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 9.5% and 9.4% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	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% for each of the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	550.0		550.0
Borrowings under the 2027 Notes, interest at a fixed rate of 8.125%, interest payments semiannually, borrowings due July 2027, effective interest rate of 8.4% for the six months ended June 30, 2022.	325.0		—
MRL Credit Facility, interest payments quarterly, borrowings due November 2024, effective interest rate of 12.5% for each of the six months ended June 30, 2022 and the year ended December 31, 2021.	315.6		303.5
Shreveport terminal asset financing arrangement	61.5		64.3
MRL asset financing arrangement	16.7		—
Other	—		0.7
Finance lease obligations, at various interest rates, interest and principal payments monthly through June 2028	3.5		4.0
Less unamortized debt issuance costs (1)	(20.6)		(17.8)
Less unamortized discounts	(1.6)		(3.5)
Total debt	$	1,450.1	$	1,426.2
Less current portion of long-term debt	7.5		7.4
Total long-term debt	$	1,442.6	$	1,418.8

(1)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 $20.6 million and $22.5 million at June 30, 2022 and December 31, 2021, respectively.

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8.125% Senior Notes due 2027 (the “2027 Notes”)

On January 20, 2022, the Company issued and sold $325.0 million in aggregate principal amount of 2027 Notes, in a private placement pursuant to Section 4(a)(2) of the Securities Act to eligible purchasers at par. The Company received net proceeds of $319.1 million, after deducting the initial purchasers’ discount and offering expenses, which the Company used, along with cash on hand, to fund the redemption of $325.0 million aggregate principal amount of its 2023 Senior Notes at a redemption price of par, plus accrued and unpaid interest to the redemption date of February 11, 2022. In conjunction with the redemption of the 2023 Senior Notes, the Company recorded a loss from debt extinguishment of $1.0 million, which is reflected in other income (expense) in the unaudited condensed consolidated statements of operations for the six months ended June 30, 2022. Interest on the 2027 Notes is paid semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022.

Senior Notes

The 2024 Secured Notes, 2025 Notes, and 2027 Notes (collectively, the “Senior Notes”) are subject to certain automatic customary releases, including the sale, disposition, or transfer of capital stock or substantially all of the assets of a subsidiary guarantor, designation of a subsidiary guarantor as unrestricted in accordance with the applicable indenture, exercise of legal defeasance option or covenant defeasance option, liquidation or dissolution of the subsidiary guarantor and a subsidiary guarantor ceases to both guarantee other Company debt and to be an obligor under the revolving credit facility. The Company’s operating subsidiaries may not sell or otherwise dispose of all or substantially all of their properties or assets to, or consolidate with or merge into, another company if such a sale would cause a default under the indentures governing the Senior Notes.

The indentures governing 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 June 30, 2022, 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 January 20, 2022, the Company entered into the Third Amendment to its revolving credit facility (the “Credit Facility Amendment”), which, among other changes, (a) extended the term of the revolving credit facility for five years from the date of the Credit Facility Amendment, (b) reduced aggregate commitments under the revolving credit facility to $500.0 million, which includes a FILO tranche, and (c) replaced LIBOR as a reference interest rate with a new reference interest rate based on Secured Overnight Financing Rate.

The borrowing capacity at June 30, 2022, under the revolving credit facility was approximately $500.0 million. As of June 30, 2022, the Company had no outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $43.9 million, leaving approximately $456.1 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, 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 June 30, 2022, the Company was in compliance with all covenants under the revolving credit facility.

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Maturities of Long-Term Debt

As of June 30, 2022, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2022	$	3.8
2023	8.1
2024	524.5
2025	559.3
2026	10.0
Thereafter	366.6
Total	$	1,472.3

9. 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 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 10 - “Fair Value Measurements”) as either current assets or derivative liabilities or other noncurrent assets, net or other long-term 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.

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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):

		June 30, 2022						December 31, 2021
	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	$	(43.0)	$	—	$	(43.0)	$	(17.4)	$	—	$	(17.4)
Crack spread swaps	Derivative liabilities / Other long-term liabilities	$	(58.3)	$	12.8	$	(45.5)	$	—	$	—	$	—
Montana/Renewables segment:
Inventory financing obligation	Obligations under inventory financing agreements	(15.0)		—		(15.0)		(10.5)		—		(10.5)
Total derivative instruments		$	(116.3)	$	12.8	$	(103.5)	$	(27.9)	$	—	$	(27.9)

The Company is exposed to credit risk in the event of nonperformance by its counterparties on these derivative transactions. The Company does not expect nonperformance on any derivative instruments, however, no assurances can be provided. The Company’s credit exposure related to these derivative instruments is represented by the fair value of contracts reported as derivative assets. As of June 30, 2022 and December 31, 2021, the Company had no counterparty relationships in which the derivatives held were in net assets. To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company primarily executes its derivative instruments with large financial institutions that have ratings of at least A3 and BBB+ by Moody’s and S&P, respectively. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed-upon thresholds in its master derivative contracts with these counterparties. No such collateral was held by the Company as of June 30, 2022 or December 31, 2021. Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets and is not netted against derivative assets or liabilities. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. As of June 30, 2022 and December 31, 2021, the Company was not required to provide collateral to its counterparties.

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 non-cash activities 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 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 Loss on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into crack spread swaps, crude oil 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 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 June 30, 2022 and 2021, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Loss on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Loss on Derivative Instruments
	Three Months Ended June 30,				Three Months Ended June 30,
	2022		2021		2022		2021
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(10.9)	$	(6.5)
Crack spread swaps	(13.3)		—		(42.9)		—
Crude oil swaps	(0.8)		—		0.3		—
Montana/Renewables segment:
Inventory financing obligation	—		—		—		(0.4)
Total	$	(14.1)	$	—	$	(53.5)	$	(6.9)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Loss on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Loss on Derivative Instruments
	Six Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(25.6)	$	(11.7)
Crack spread swaps	(13.3)		—		(45.5)		—
Crude oil swaps	(0.8)		—		—		—
Montana/Renewables segment:
Inventory financing obligation	—		—		(4.5)		(2.8)
WCS crude oil basis swaps	—		1.1		—		1.3
Total	$	(14.1)	$	1.1	$	(75.6)	$	(13.2)

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Derivative Positions

At June 30, 2022, the Company had the following notional contract volumes related to outstanding derivative instruments:

		Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional	2022	Unit of Measure
Derivative instruments not designated as hedges:
Crack spread swaps - sales	1,656,000	1,656,000	Barrels

		Notional Contract Volumes by Year of Maturity
	Total Outstanding Notional	2023	Unit of Measure
Derivative instruments not designated as hedges:
Crack spread swaps - sales (1)	3,650,000	3,650,000	Barrels

(1)In the second quarter of 2022, the Company modified crack spread swaps derivatives to blend and extend the contracts that were set to expire in June 2022. The impact of the modifications of these contracts resulted in a $7.3 million unrealized derivative loss recorded in Loss on derivative instruments in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2022, which would otherwise been realized in the second quarter of 2022.

10. 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

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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 June 30, 2022 and December 31, 2021, 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 9 - “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 June 30, 2022 and December 31, 2021, 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 2 - “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):

	June 30, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Pension plan investments	$	28.8	$	—	$	—	$	28.8	$	34.5	$	—	$	—	$	34.5
Total recurring assets at fair value	$	28.8	$	—	$	—	$	28.8	$	34.5	$	—	$	—	$	34.5
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(58.0)	$	(58.0)	$	—	$	—	$	(27.9)	$	(27.9)
Crack spread swaps	—		—		(45.5)		(45.5)		—		—		—		—
Total derivative liabilities	$	—	$	—	$	(103.5)	$	(103.5)	$	—	$	—	$	(27.9)	$	(27.9)
RINs obligation	—		(392.9)		—		(392.9)		—		(278.9)		—		(278.9)
Precious metals obligations	(6.4)		—		—		(6.4)		(6.8)		—		—		(6.8)
Liability awards	(27.8)		—		—		(27.8)		(63.1)		—		—		(63.1)
Total recurring liabilities at fair value	$	(34.2)	$	(392.9)	$	(103.5)	$	(530.6)	$	(69.9)	$	(278.9)	$	(27.9)	$	(376.7)

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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):

	Six Months Ended June 30,
	2022		2021
Fair value at January 1,	$	(27.9)	$	(3.5)
Realized gain (loss) on derivative instruments	(14.1)		1.1
Unrealized loss on derivative instruments	(75.6)		(13.2)
Settlements	14.1		(1.1)
Fair value at June 30,	$	(103.5)	$	(16.7)
Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of June 30,	$	(75.6)	$	(13.2)

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, cash equivalents and restricted cash

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

Debt

The estimated fair value of long-term debt at June 30, 2022 and December 31, 2021, consists primarily of senior notes. The estimated aggregate fair value of the Company’s 2023 Notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s 2024 Secured Notes and 2025 and 2027 Senior 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, MRL Credit Facility, MRL asset financing arrangement, finance lease obligations and other obligations are classified as Level 3. Please read Note 8 - “Long-Term Debt” for further information on long-term debt.

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

		June 30, 2022				December 31, 2021
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2023 Notes	1	$	—	$	—	$	325.6	$	322.3
2024 Secured Notes, 2025 Notes, and 2027 Notes	2	$	1,006.2	$	1,064.2	$	815.3	$	742.0
Revolving credit facility	3	$	—	$	(3.5)	$	—	$	(2.0)
MRL credit facility	3	$	315.6	$	308.9	$	303.5	$	296.2
Shreveport terminal asset financing arrangement	3	$	61.5	$	60.3	$	64.3	$	63.0
MRL asset financing arrangement	3	$	16.7	$	16.7	$	—	$	—
Finance leases and other obligations	3	$	3.5	$	3.5	$	4.7	$	4.7

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11. 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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator for basic and diluted earnings per limited partner unit:
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Less:
General partner’s interest in net loss	(0.3)		(1.6)		(2.2)		(4.5)
Net loss attributable to limited partners	$	(15.0)	$	(76.8)	$	(108.6)	$	(220.0)
Denominator for basic and diluted earnings per limited partner unit:
Weighted average limited partner units outstanding (1)	79,424,383		78,929,561		79,241,515		78,782,802
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.19)	$	(0.97)	$	(1.37)	$	(2.79)

(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 June 30, 2022 and 2021 and for the six months ended June 30, 2022 and 2021.

12. 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 Northwest Louisiana. In this segment, we manufacture and market a wide variety of solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for consumer-facing and industrial products.

•Montana/Renewables. The Montana/Renewables segment is composed of our Great Falls refinery and dual-train energy transition project. When our Great Falls renewable diesel facility is operational, we will process a variety of geographically advantaged renewable feedstocks into renewable diesel, sustainable aviation fuel, renewable hydrogen, renewable natural gas, renewable propane, and renewable naphtha that we expect to distribute into renewable markets in the western half of North America. At our Montana specialty refinery, we process Canadian crude oil into conventional gasoline, diesel, jet fuel and specialty grades of asphalt, with production sized to serve local markets.

•Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands. In this segment, we blend, package, and market high performance products through our Royal Purple, Bel-Ray, and TruFuel 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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The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 3 - “Summary of Significant Accounting Policies,” of the Company’s 2021 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. 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 June 30, 2022 and 2021, is as follows (in millions):

Three Months Ended June 30, 2022	Specialty Products and Solutions (1) (2)		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	979.2	$	80.1	$	364.7	$	—	$	—	$	1,424.0
Inter-segment sales	7.0		—		—		—		(7.0)		—
Total sales	$	986.2	$	80.1	$	364.7	$	—	$	(7.0)	$	1,424.0
Adjusted EBITDA	$	123.5	$	3.7	$	68.6	$	(20.0)	$	—	$	175.8
Reconciling items to net loss:
Depreciation and amortization	16.1		2.8		9.5		1.9		—		30.3
LCM / LIFO gain	—		(0.2)		(1.0)		—		—		(1.2)
Interest expense	5.9		—		8.7		28.0		—		42.6
Unrealized loss on derivatives	53.5		—		—		—		—		53.5
RINs mark-to-market loss	44.7		—		24.0		—		—		68.7
Equity-based compensation and other items											(3.4)
Income tax expense											0.6
Net loss											$	(15.3)
Capital expenditures	$	19.2	$	0.3	$	99.8	$	—	$	—	$	119.3
PP&E, net	$	373.8	$	34.1	$	737.0	$	4.8	$	—	$	1,149.7

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Three Months Ended June 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	543.8	$	65.2	$	198.0	$	—	$	—	$	807.0
Inter-segment sales	4.6		—		—		—		(4.6)		—
Total sales	$	548.4	$	65.2	$	198.0	$	—	$	(4.6)	$	807.0
Adjusted EBITDA	$	31.8	$	7.3	$	12.8	$	(19.6)	$	—	$	32.3
Reconciling items to net loss:
Depreciation and amortization	15.7		3.4		8.4		2.0		—		29.5
LCM / LIFO gain	(11.3)		(0.5)		(5.9)		—		—		(17.7)
Loss on impairment and disposal of assets	1.1		—		0.1		—		—		1.2
Interest expense	4.4		—		1.4		31.1		—		36.9
Unrealized loss on derivatives	6.5		—		0.4		—		—		6.9
RINs mark-to-market loss	29.9		—		18.3		—		—		48.2
Other non-recurring expenses											0.7
Equity-based compensation and other items											4.1
Income tax expense											0.9
Net loss											$	(78.4)
Capital expenditures	$	25.9	$	0.5	$	8.9	$	—	$	—	$	35.3
PP&E, net	$	390.0	$	33.5	$	453.9	$	12.5	$	—	$	889.9

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Reportable segment information for the six months ended June 30, 2022 and 2021, is as follows (in millions):

Six Months Ended June 30, 2022	Specialty Products and Solutions (1) (2)		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,748.6	$	153.3	$	620.0	$	—	$	—	$	2,521.9
Inter-segment sales	12.6		—		—		—		(12.6)		—
Total sales	$	1,761.2	$	153.3	$	620.0	$	—	$	(12.6)	$	2,521.9
Adjusted EBITDA	$	151.6	$	9.0	$	77.6	$	(39.1)	$	—	$	199.1
Reconciling items to net loss:
Depreciation and amortization	32.0		5.6		19.0		3.9		—		60.5
LCM / LIFO gain	(3.4)		(0.2)		(3.6)		—		—		(7.2)
Interest expense	16.8		1.1		18.8		57.5		—		94.2
Unrealized loss on derivatives	71.1		—		4.5		—		—		75.6
RINs mark-to-market loss	50.8		—		27.3		—		—		78.1
Other non-recurring expenses											3.8
Equity-based compensation and other items											3.6
Income tax expense											1.3
Net loss											$	(110.8)
Capital expenditures	$	30.3	$	0.9	$	165.0	$	0.1	$	—	$	196.3
PP&E, net	$	373.8	$	34.1	$	737.0	$	4.8	$	—	$	1,149.7

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Six Months Ended June 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	923.9	$	131.4	$	352.0	$	—	$	—	$	1,407.3
Inter-segment sales	8.1		—		—		—		(8.1)		—
Total sales	$	932.0	$	131.4	$	352.0	$	—	$	(8.1)	$	1,407.3
Adjusted EBITDA	$	29.6	$	23.3	$	10.8	$	(36.8)	$	—	$	26.9
Reconciling items to net loss:
Depreciation and amortization	32.6		6.8		17.0		4.0		—		60.4
LCM / LIFO gain	(28.9)		(0.5)		(11.0)		—		—		(40.4)
Loss on impairment and disposal of assets	1.8		—		0.1		—		—		1.9
Interest expense	6.7		0.1		1.6		62.7		—		71.1
Unrealized loss on derivatives	11.7		—		1.5		—		—		13.2
RINs mark-to-market loss	81.6		—		41.6		—		—		123.2
Other non-recurring expenses											3.2
Equity-based compensation and other items											17.7
Income tax expense											1.1
Net loss											$	(224.5)
Capital expenditures	$	36.7	$	1.0	$	11.3	$	—	$	—	$	49.0
PP&E, net	$	390.0	$	33.5	$	453.9	$	12.5	$	—	$	889.9

(1)For the three and six months ended June 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $13.9 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s business interruption insurance policy. The Company incurred business losses due to increased costs arising from a polar vortex that occurred in 2021 in northwest Louisiana. As a result, the Company filed a contingent business interruption claim. Specifically, the losses included a loss of throughput at the Shreveport refinery and additional transportation related expenses.

(2)For the three and six months ended June 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $4.4 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s property damage insurance policy as a result of damages caused by a polar vortex that occurred in 2021.

Geographic Information

International sales accounted for less than ten percent of consolidated sales in each of the three and six months ended June 30, 2022 and 2021.

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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 products, and other specialty and fuels products. The following table sets forth the major product category sales for each segment for the three months ended June 30, 2022 and 2021 (dollars in millions):

	Three Months Ended June 30,
	2022				2021
Specialty Products and Solutions:
Lubricating oils	$	245.3	17.2	%	$	158.8	19.7	%
Solvents	120.6		8.5	%	75.6		9.4	%
Waxes	49.8		3.5	%	36.8		4.5	%
Fuels, asphalt and other by-products	563.5		39.6	%	272.6		33.8	%
Total	$	979.2	68.8	%	$	543.8	67.4	%
Montana/Renewables:
Gasoline	$	67.8	4.8	%	$	40.7	5.0	%
Diesel	180.8		12.7	%	84.1		10.4	%
Jet fuel	14.8		1.0	%	7.4		0.9	%
Asphalt, heavy fuel oils and other	101.3		7.1	%	65.8		8.2	%
Total	$	364.7	25.6	%	$	198.0	24.5	%
Performance Brands:	$	80.1	5.6	%	$	65.2	8.1	%
Consolidated sales	$	1,424.0	100.0	%	$	807.0	100.0	%

The following table sets forth the major product category sales for each segment for the six months ended June 30, 2022 and 2021 (dollars in millions):

	Six Months Ended June 30,
	2022				2021
Specialty Products and Solutions:
Lubricating oils	$	454.8	18.0	%	$	290.2	20.6	%
Solvents	212.6		8.5	%	141.3		10.0	%
Waxes	94.3		3.7	%	69.5		5.0	%
Fuels, asphalt and other by-products	986.9		39.1	%	422.9		30.1	%
Total	$	1,748.6	69.3	%	$	923.9	65.7	%
Montana/Renewables:
Gasoline	$	126.4	5.0	%	$	83.5	5.9	%
Diesel	297.3		11.9	%	149.1		10.6	%
Jet fuel	26.2		1.0	%	12.4		0.9	%
Asphalt, heavy fuel oils and other	170.1		6.7	%	107.0		7.6	%
Total	$	620.0	24.6	%	$	352.0	25.0	%
Performance Brands:	$	153.3	6.1	%	$	131.4	9.3	%
Consolidated sales	$	2,521.9	100.0	%	$	1,407.3	100.0	%

Major Customers

During the three and six months ended June 30, 2022 and 2021, the Company had no customer that represented 10% or greater of consolidated sales.

Major Suppliers

During the three months ended June 30, 2022 and 2021, the Company had two suppliers that supplied approximately 85.8% and 88.6%, respectively, of its crude oil supply. During the six months ended June 30, 2022 and 2021, the Company had two suppliers that supplied approximately 85.1% and 87.5%, respectively, of its crude oil supply.

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13. Unrestricted Subsidiaries

As defined in the indentures governing the Company’s outstanding senior notes, an unrestricted subsidiary means Montana Renewables Holdings, MRL and any other subsidiary of the Company, other than Calumet Finance Corp., that is designated by the Company’s general partner’s board of directors as an unrestricted subsidiary, but only to the extent that such subsidiary:

•has no indebtedness other than non-recourse debt owing to any person other than the Company or any of its restricted subsidiaries, except to the extent permitted by the indentures of the senior notes;

•is not party to any agreement, contract, arrangement or understanding with the Company or any restricted subsidiary of the Company unless the terms of any such agreement, contract, arrangement or other understanding are no less favorable to the Company or such restricted subsidiary than those that might be obtained at the time from persons who are not affiliates of the Company, except to the extent permitted by the indentures of the senior notes;

•is a person with respect to which neither the Company nor any of its restricted subsidiaries has any direct or indirect obligation (a) to subscribe for additional equity interests or (b) to maintain or preserve such person’s financial condition or to cause such person to achieve any specified levels of operating results, except to the extent permitted by the indentures of the senior notes; and

•has not guaranteed or otherwise directly or indirectly provided credit support for any indebtedness of the Company or any of its restricted subsidiaries.

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As of June 30, 2022 and December 31, 2021, respectively, Montana Renewables Holdings and MRL were the only unrestricted subsidiaries of the Company. In accordance with the indentures governing the Company’s outstanding senior notes, the following tables set forth certain financial information of (i) the Company and its restricted subsidiaries, on a combined basis, (ii) the Company’s unrestricted subsidiaries, on a combined basis, and (iii) the Company and its subsidiaries, on a consolidated basis, in each case, as of June 30, 2022 and December 31, 2021, respectively.

June 30, 2022	Parent Company and Restricted Subsidiaries		Unrestricted Subsidiaries		Eliminations		Consolidated Total
Cash and cash equivalents	$	14.0	$	13.5	$	—	$	27.5
Accounts receivable - Intercompany	$	—	$	23.4	$	(23.4)	$	—
Property, plant and equipment, net	$	712.0	$	537.4	$	(99.7)	$	1,149.7
Accounts payable	$	374.3	$	99.2	$	—	$	473.5
Deferred revenue - Intercompany	$	—	$	20.3	$	(20.3)	$	—
Long-term debt	$	1,117.0	$	325.6	$	—	$	1,442.6
Partners’ capital (deficit)	$	(473.1)	$	(4.5)	$	—	$	(477.6)
Partners’ capital (deficit) - Intercompany	$	—	$	133.7	$	(133.7)	$	—

December 31, 2021	Parent Company and Restricted Subsidiaries		Unrestricted Subsidiaries		Eliminations		Consolidated Total
Accounts receivable - Trade	$	216.8	$	—	$	—	$	216.8
Accounts receivable - Intercompany	$	—	$	6.9	$	(6.9)	$	—
Property, plant and equipment, net	$	698.4	$	390.3	$	(139.0)	$	949.7
Restricted cash	$	—	$	83.8	$	—	$	83.8
Accounts payable - Intercompany	$	—	$	43.1	$	(43.1)	$	—
Long-term debt	$	1,122.6	$	296.2	$	—	$	1,418.8
Partners’ capital (deficit)	$	(379.7)	$	(5.4)	$	—	$	(385.1)
Partners’ capital (deficit) - Intercompany	$	—	$	146.7	$	(146.7)	$	—

For the three months ended June 30, 2022, the Company’s unrestricted subsidiaries had tolling revenue of $28.9 million, operating costs of $7.0 million, which was exclusive of depreciation expense of $3.8 million, and interest expense of $11.2 million. For the three months ended June 30, 2021, the Company’s unrestricted subsidiaries had no tolling revenue, operating costs, depreciation expense, or interest expense.

For the six months ended June 30, 2022, the Company’s unrestricted subsidiaries had tolling revenue of $43.2 million, operating costs of $13.9 million, which was exclusive of depreciation expense of $7.5 million, and interest expense of $22.3 million. For the six months ended June 30, 2021, the Company’s unrestricted subsidiaries had no tolling revenue, operating costs, depreciation expense, or interest expense.

14. Subsequent Events

As of July 31, 2022, the fair value of the Company’s derivative liabilities have decreased by approximately $18.0 million subsequent to June 30, 2022.

On August 5, 2022, Montana Renewables, LLC (“MRL”), a wholly owned subsidiary of the Company, entered into Equipment Schedule No. 2 (the “Equipment Schedule”) and an Interim Funding Agreement (the “Funding Agreement”) with Stonebriar Commercial Finance LLC (“Stonebriar”). The Equipment Schedule and the Funding Agreement each constitute a schedule under the Master Lease Agreement (the “Lease Agreement”) dated as of December 31, 2021 between MRL and Stonebriar. The Equipment Schedule provides that Stonebriar will purchase from and lease back to MRL a hydrocracker, intended to produce renewable diesel and related products, for a purchase price of $250.0 million. The Funding Agreement provides $100.0 million in financing for the design and construction of a feedstock pre-treater facility.

On August 5, 2022, Montana Renewables holdings LLC (“MRHL”), the direct parent of MRL, issued and sold preferred equity in MRHL for $250.0 million (the “Preferred Equity”). The Preferred Equity is not interest bearing and carries certain minimum return thresholds.

Proceeds from the Lease Agreement and Preferred Equity were used, or will be used, to fully retire the MRL Credit Facility, fund the renewable diesel project and for general corporate purposes of MRL.

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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 six months ended June 30, 2022. Unitholders should read the following discussion and analysis of our financial condition and results of operations in conjunction with our 2021 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 products to customers across a broad range of consumer-facing and industrial markets. We also own what we believe will be one of North America’s leading renewable diesel manufacturing facilities, which is expected to be commissioned in the fall of 2022. We are headquartered in Indianapolis, Indiana and operate twelve facilities throughout North America.

Our operations are managed by the chief operating decision maker (“CODM”) using the following reportable segments: Specialty Products and Solutions; Performance Brands; Montana/Renewables; and Corporate. For additional information, see Note 12 - “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 manufacture and market a wide variety of solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for consumer-facing and industrial products. In our Performance Brands segment, we blend, package and market high performance products through our Royal Purple, Bel-Ray, and TruFuel brands. Our Montana/Renewables segment is comprised of two businesses - renewable diesel and specialty asphalt. When our Great Falls renewable diesel facility is operational, we will process a variety of geographically advantaged renewable feedstocks into renewable diesel, sustainable aviation fuel, renewable hydrogen, renewable natural gas, renewable propane, and renewable naphtha that we expect to distribute into renewable markets in the western half of North America. At our Montana specialty asphalt facility, we continue to process Canadian crude oil into conventional gasoline, diesel, jet fuel and specialty grades of asphalt, with production sized to serve local markets. Our Corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products and Solutions, Performance Brands or Montana/Renewables segments.

Second Quarter 2022 Update

Outlook and Trends

During the second quarter of 2022, global economic activity was impacted by macroeconomic uncertainty and market volatility resulting from geopolitical concerns, including Russia’s invasion of Ukraine. The invasion further exacerbated a global energy shortage, which has resulted in increased commodity prices and inflation concerns. Labor market pressures, stressed supply chains, and COVID-19 concerns have shown signs of improvement, but continue to be challenges. Governments around the world responded to Russia’s invasion of Ukraine by imposing economic sanctions and global central banks began addressing inflation by, among other things, increasing interest rates. The global energy crisis is a result of demand for hydrocarbons returning to pre-pandemic levels coupled with decreased global energy production and disrupted energy trade flows around the globe, particularly in Europe. The resulting extreme natural gas prices have raised the cost to produce fuels internationally. This has led to an elevated margin environment in North America where the cost to produce hydrogen is relatively advantaged to the rest of the world. These factors have impacted our businesses in various ways.

Our Specialty Products and Solutions segment continues to experience strong margins as we see the benefit of a fully integrated specialty business. Our Montana/Renewables segment also continues to experience strong margins as we move into the summer asphalt season and recognize the normal Rocky Mountain geographic advantage. Our Performance Brands segment has been most impacted by the inflationary environment. As a fully integrated specialty business, our product lines perform differently in response to changing market conditions. The same macro drivers that are supporting margins in the higher volume areas of our business are a hindrance to our Performance Brands segment as the timeline to push inflationary costs through the system is extended in the retail market. Further, of all our segments, our Performance Brands segment has seen the highest degree of negative impact from the global supply chain crisis. While the supply chain is not fully resolved, we have seen dramatic improvements which has allowed volumes to increase.

Across all of our business segments we continue to see strong, growing demand for our products. However, we will continue to monitor macroeconomic signals and indicators that may point to recessionary risk in the future, which may impact our businesses. As we saw during 2020 with COVID-19 and the start of the global pandemic, our integrated business model and diversified portfolio of products across many industries and geographic markets provides an advantaged response to changing market conditions, including recessionary trends. While we are not immune to the impacts of an economic downturn, we believe our specialty business is well positioned to withstand one.

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We also continue to monitor COVID-19 statistics and we will continue to assess conditions around our facilities. Our established COVID protocols have proven successful and remain available as necessary to ensure a safe working environment for all of our employees.

At our Great Falls, Montana facility we are preparing for the partial conversion of the plant to Renewable Diesel service during the third quarter of 2022. We expect the plant will return to operations in a phased approach this fall and is expected to be fully operational by year end. We believe this is one of the most competitive Renewable Diesel projects in North America and will help us lead Montana and the Pacific Northwest in the ongoing energy transition.

Contingencies

For a summary of litigation and other contingencies, please read Note 6 - “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 a net loss of $15.3 million in the second quarter 2022 versus a net loss of $78.4 million in the second quarter 2021. We reported Adjusted EBITDA (as defined in Note 12 - “Segments and Related Information” under Part I, Item 1 “Financial Statements - Notes to Unaudited Condensed Consolidated Financial Statements”) of $175.8 million in the second quarter 2022 versus $32.3 million in the second quarter 2021. We generated cash from operating activities of $89.7 million in the second quarter 2022 versus using cash of $39.0 million in the second quarter of 2021, driven by a decrease of $63.1 million in net loss between the comparative periods and a decrease 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 $123.5 million in the second quarter 2022 versus $31.8 million in the second quarter 2021. Compared to the second quarter of 2021, Specialty Products and Solutions second quarter 2022 segment Adjusted EBITDA was favorably impacted by an increase in sales volumes driven by strong operations and the absence of unplanned downtime at our Shreveport facility that occurred in the second quarter of 2021. This impact was coupled with the favorable impact of the strong margin environment experienced during the quarter.

Montana/Renewables segment Adjusted EBITDA was $68.6 million in the second quarter 2022 versus $12.8 million in the second quarter 2021. Compared to the second quarter of 2021, Montana/Renewables second quarter 2022 segment Adjusted EBITDA was favorably impacted by an increase in net unit margins as a result of a wider WCS-WTI crude spread and vastly improved crack spreads for transportation fuels. These impacts were partially offset by an increase in operating costs driven by higher utility costs.

Performance Brands segment Adjusted EBITDA was $3.7 million in the second quarter 2022 versus $7.3 million in the second quarter 2021. Compared to the second quarter of 2021, Performance Brands segment Adjusted EBITDA was unfavorably impacted by a $2.2 million decrease in gross profit due to the natural lag in passing increased costs through to customers in our branded and consumer markets. Supply chain difficulties continue to impact results but are significantly improving.

Total Corporate costs represented a loss of $20.0 million of Adjusted EBITDA in the second quarter 2022 versus a loss of $19.6 million of Adjusted EBITDA in the second quarter 2021 primarily due to higher professional services related fees.

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Liquidity Update

As of June 30, 2022, we had total liquidity of $470.1 million comprised of $14.0 million of unrestricted cash and $456.1 million of availability under our revolving credit facility. Unrestricted cash excludes amounts held by MRL, an unrestricted subsidiary of the Company. As of June 30, 2022, our revolving credit facility had a $500.0 million borrowing base, $43.9 million in outstanding standby letters of credit and no 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 refinery 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 that are mandated to be blended into finished transportation 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 second quarter 2022, we recorded a non-cash expense of $83.0 million for RINs, as compared to a non-cash RINs expense of $58.3 million for the second quarter 2021. Our 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 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 receiving any subsequent small refinery exemptions.

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 6 - “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.

Unrestricted Subsidiaries

See Note 13 - “Unrestricted Subsidiaries” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report for further information regarding certain financial information of our unrestricted subsidiaries.

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 9 — “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 Six Months Ended June 30, 2022 and 2021

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 June 30,				Six Months Ended June 30,
	2022	2021	% Change		2022	2021	% Change
	(In bpd)				(In bpd)
Total sales volume (1)	91,524	84,463	8.4	%	90,978	77,817	16.9	%
Total feedstock runs (2)	88,363	80,750	9.4	%	88,408	70,922	24.7	%
Facility production: (3)
Specialty Products and Solutions:
Lubricating oils	10,661	10,356	2.9	%	10,713	8,886	20.6	%
Solvents	6,776	6,938	(2.3)	%	6,876	6,664	3.2	%
Waxes	1,204	1,497	(19.6)	%	1,360	1,191	14.2	%
Fuels, asphalt and other by-products	38,948	30,404	28.1	%	39,685	23,586	68.3	%
Total Specialty Products and Solutions	57,589	49,195	17.1	%	58,634	40,327	45.4	%
Montana/Renewables:
Gasoline	4,357	4,368	(0.3)	%	4,687	5,088	(7.9)	%
Diesel	10,992	10,050	9.4	%	10,335	10,055	2.8	%
Jet fuel	822	880	(6.6)	%	964	875	10.2	%
Asphalt, heavy fuel oils and other	11,071	11,595	(4.5)	%	10,472	11,114	(5.8)	%
Total Montana/Renewables	27,242	26,893	1.3	%	26,458	27,132	(2.5)	%
Performance Brands	1,615	1,296	24.6	%	1,617	1,421	13.8	%
Total facility production (3)	86,446	77,384	11.7	%	86,709	68,880	25.9	%

(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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Sales	$	1,424.0	$	807.0	$	2,521.9	$	1,407.3
Cost of sales	1,280.1		787.9		2,345.3		1,430.2
Gross profit (loss)	143.9		19.1		176.6		(22.9)
Operating costs and expenses:
Selling	16.2		14.5		28.8		27.6
General and administrative	22.5		29.7		55.1		66.4
Other operating expense	9.5		8.4		14.3		23.3
Operating income (loss)	95.7		(33.5)		78.4		(140.2)
Other expense:
Interest expense	(42.6)		(36.9)		(94.2)		(71.1)
Loss on derivative instruments	(67.6)		(6.9)		(89.7)		(12.1)
Other expense	(0.2)		(0.2)		(4.0)		—
Total other expense	(110.4)		(44.0)		(187.9)		(83.2)
Net loss before income taxes	(14.7)		(77.5)		(109.5)		(223.4)
Income tax expense	0.6		0.9		1.3		1.1
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
EBITDA	$	52.6	$	(14.6)	$	33.7	$	(100.1)
Adjusted EBITDA	$	175.8	$	32.3	$	199.1	$	26.9
Distributable Cash Flow	$	117.7	$	(37.1)	$	74.4	$	(87.9)

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.

40

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 8 - “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.

41

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(In millions)
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow:
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Add:
Interest expense	42.6		36.9		94.2		71.1
Depreciation and amortization	24.7		26.0		49.0		52.2
Income tax expense	0.6		0.9		1.3		1.1
EBITDA	$	52.6	$	(14.6)	$	33.7	$	(100.1)
Add:
LCM / LIFO gain	$	(1.2)	$	(17.7)	$	(7.2)	$	(40.4)
Unrealized loss on derivative instruments	53.5		6.9		75.6		13.2
Amortization of turnaround costs	5.6		3.5		11.5		8.2
Loss on impairment and disposal of assets	—		1.2		—		1.9
RINs mark-to-market loss	68.7		48.2		78.1		123.2
Equity-based compensation and other items	(3.4)		4.1		3.6		17.7
Other non-recurring expenses	—		0.7		3.8		3.2
Adjusted EBITDA	$	175.8	$	32.3	$	199.1	$	26.9
Less:
Replacement and environmental capital expenditures (1)	$	18.2	$	8.7	$	26.8	$	13.9
Cash interest expense (2)	31.6		34.9		79.1		67.6
Turnaround costs	7.7		24.9		17.5		32.2
Income tax expense	0.6		0.9		1.3		1.1
Distributable Cash Flow	$	117.7	$	(37.1)	$	74.4	$	(87.9)

(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.

42

Changes in Results of Operations for the Three Months Ended June 30, 2022 and 2021

Sales. Sales increased $617.0 million, or 76.5%, to $1,424.0 million in the three months ended June 30, 2022, from $807.0 million in the same period in 2021. Sales for each of our principal product categories in these periods were as follows:

	Three Months Ended June 30,
	2022		2021		% Change
	(Dollars in millions, except barrel and per barrel data)
Sales by segment:
Specialty Products and Solutions:
Lubricating oils	$	245.3	$	158.8	54.5	%
Solvents	120.6		75.6		59.5	%
Waxes	49.8		36.8		35.3	%
Fuels, asphalt and other by-products (1)	563.5		272.6		106.7	%
Total Specialty Products and Solutions	$	979.2	$	543.8	80.1	%
Total Specialty Products and Solutions sales volume (in barrels)	5,606,000		4,968,000		12.8	%
Average Specialty Products and Solutions sales price per barrel	$	174.67	$	109.46	59.6	%
Montana/Renewables:
Gasoline	$	67.8	$	40.7	66.6	%
Diesel	180.8		84.1		115.0	%
Jet Fuel	14.8		7.4		100.0	%
Asphalt, heavy fuel oils and other (2)	101.3		65.8		54.0	%
Total Montana/Renewables	$	364.7	$	198.0	84.2	%
Total Montana/Renewables sales volume (in barrels)	2,581,000		2,585,000		(0.2)	%
Average Montana/Renewables sales price per barrel	$	141.30	$	76.60	84.5	%
Performance Brands:
Total Performance Brands (3)	$	80.1	$	65.2	22.9	%
Total Performance Brands sales volume (in barrels)	142,000		133,000		6.8	%
Average Performance Brands sales price per barrel	$	564.08	$	490.23	15.1	%
Total sales	$	1,424.0	$	807.0	76.5	%
Total Specialty Products and Solutions, Montana/Renewables, and Performance Brands sales volume (in barrels)	8,329,000		7,686,000		8.4	%

(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 $435.4 million increase in Specialty Products and Solutions segment sales for the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Volume	$	69.8
Sales price	365.6
Total Specialty Products and Solutions segment sales increase	$	435.4

Specialty Products and Solutions segment sales increased period over period, primarily due to the significantly higher price environment in the current year period and strong throughput. The favorable volumes impact was due to reliable operations and the absence of unplanned downtime at our Shreveport facility and a large restocking of inventory in the prior year comparative period.

43

The components of the $166.7 million increase in Montana/Renewables segment sales for the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Volume	$	(0.3)
Sales price	167.0
Total Montana/Renewables segment sales increase	$	166.7

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 $14.9 million increase in Performance Brands segment sales for the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Volume	$	4.0
Sales price	10.9
Total Performance Brands segment sales increase	$	14.9

Performance Brands segment sales increased due to increases in volumes and product 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 $124.8 million, or 653.4%, to $143.9 million in the three months ended June 30, 2022, from $19.1 million in the same period in 2021. Gross profit (loss) for our business segments were as follows:

	Three Months Ended June 30,
	2022			2021			% Change
	(Dollars in millions, except per barrel data)
Gross profit by segment:
Specialty Products and Solutions:
Gross profit	$	88.1		$	7.7		1,044.2	%
Percentage of sales	9.0		%	1.4		%	7.6	%
Specialty Products and Solutions gross profit per barrel	$	15.72		$	1.55		914.2	%
Montana/Renewables:
Gross profit (loss)	$	41.6		$	(5.0)		932.0	%
Percentage of sales	11.4		%	(2.5)		%	13.9	%
Montana/Renewables gross profit (loss) per barrel	$	16.12		$	(1.93)		935.2	%
Performance Brands:
Gross profit	$	14.2		$	16.4		(13.4)	%
Percentage of sales	17.7		%	25.2		%	(7.5)	%
Performance Brands gross profit per barrel	$	100.00		$	123.31		(18.9)	%
Total gross profit	$	143.9		$	19.1		653.4	%
Percentage of sales	10.1		%	2.4		%	7.7	%

44

The components of the $80.4 million increase in Specialty Products and Solutions segment gross profit for the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Three months ended June 30, 2021 reported gross profit	$	7.7
Cost of materials	(272.4)
Operating costs	(0.9)
LCM / LIFO inventory adjustments	(11.3)
Volumes	15.3
Sales price	365.7
RINs expense	(16.0)
Three months ended June 30, 2022 reported gross profit	$	88.1

The increase in Specialty Products and Solutions segment gross profit for the three months ended June 30, 2022, as compared to the same period in 2021, was primarily due to stronger specialties and fuels unit margins as a result of strong market demand. This impact was coupled with the favorable volumes impact resulting from the absence in the current year period of the unplanned downtime at our Shreveport facility that occurred in the prior year comparative period.

The components of the $46.6 million increase in Montana/Renewables segment gross profit (loss) for the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Three months ended June 30, 2021 reported gross profit (loss)	$	(5.0)
Cost of materials	(100.5)
LCM / LIFO inventory adjustments	(4.9)
Volumes	(0.1)
Operating costs	(6.9)
RINs expense	(7.9)
Sales price	166.9
Three months ended June 30, 2022 reported gross profit	$	41.6

The increase in Montana/Renewables segment gross profit (loss) for the three months ended June 30, 2022, as compared to the same period in 2021, was primarily due to a significantly stronger crack spread environment leading to higher margins. The impact was partially offset by an increase in operating costs driven by higher utility costs.

The components of the $2.2 million decrease in Performance Brands segment gross profit for the three months ended June 30, 2022, as compared to the three months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Three months ended June 30, 2021 reported gross profit	$	16.4
Cost of materials	(13.4)
LCM / LIFO inventory adjustments	(0.3)
Volumes	1.4
Operating costs	(0.8)
Sales price	10.9
Three months ended June 30, 2022 reported gross profit	$	14.2

The decrease in Performance Brands segment gross profit for the three months ended June 30, 2022, as compared to the same period in 2021, was primarily driven by higher material and feedstock costs. The impact of these items were partially offset by higher sales prices as a result of our continued growth in the business for our TruFuel, Royal Purple, and Bel-Ray brands.

45

General and administrative. General and administrative expenses decreased $7.2 million, or 24.2%, to $22.5 million in the three months ended June 30, 2022, from $29.7 million in the same period in 2021. The decrease was due primarily to a $7.6 million decrease in equity-based compensation related expenses.

Interest expense. Interest expense increased $5.7 million, or 15.4%, to $42.6 million in the three months ended June 30, 2022, from $36.9 million in the same period in 2021. The increase was primarily due to interest expense incurred for our MRL credit facility in the current quarter, which was absent the prior year comparative period.

Gain (loss) on derivative instruments. There was a $67.6 million loss on derivative instruments in the three months ended June 30, 2022, compared to a $6.9 million loss in the same period in 2021. The change was primarily driven by a combined $56.2 million realized and unrealized loss on crack spread swaps in the current quarter, absent the prior year comparative period, coupled with a $10.9 million unrealized loss on the inventory financing embedded derivative in the current quarter, as compared to a $6.9 million unrealized loss in the prior year comparative period.

46

Changes in Results of Operations for the Six Months Ended June 30, 2022 and 2021

Sales. Sales increased $1,114.6 million, or 79.2%, to $2,521.9 million in the six months ended June 30, 2022, from $1,407.3 million in the same period in 2021. Sales for each of our principal product categories in these periods were as follows:

	Six Months Ended June 30,
	2022		2021		% Change
	(Dollars in millions, except barrel and per barrel data)
Sales by segment:
Specialty Products and Solutions:
Lubricating oils	$	454.8	$	290.2	56.7	%
Solvents	212.6		141.3		50.5	%
Waxes	94.3		69.5		35.7	%
Fuels, asphalt and other by-products (1)	986.9		422.9		133.4	%
Total Specialty Products and Solutions	$	1,748.6	$	923.9	89.3	%
Total Specialty Products and Solutions sales volume (in barrels)	11,123,000		8,721,000		27.5	%
Average Specialty Products and Solutions sales price per barrel	$	157.21	$	105.94	48.4	%
Montana/Renewables:
Gasoline	$	126.4	$	83.5	51.4	%
Diesel	297.3		149.1		99.4	%
Jet Fuel	26.2		12.4		111.3	%
Asphalt, heavy fuel oils and other (2)	170.1		107.0		59.0	%
Total Montana/Renewables	$	620.0	$	352.0	76.1	%
Total Montana/Renewables sales volume (in barrels)	5,069,000		5,090,000		(0.4)	%
Average Montana/Renewables sales price per barrel	$	122.31	$	69.16	76.9	%
Performance Brands:
Total Performance Brands (3)	$	153.3	$	131.4	16.7	%
Total Performance Brands sales volume (in barrels)	275,000		274,000		0.4	%
Average Performance Brands sales price per barrel	$	557.45	$	479.56	16.2	%
Total sales	$	2,521.9	$	1,407.3	79.2	%
Total Specialty Products and Solutions, Montana/Renewables, and Performance Brands sales volume (in barrels)	16,467,000		14,085,000		16.9	%

(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 $824.7 million increase in Specialty Products and Solutions segment sales for the six months ended June 30, 2022, as compared to the six months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Volume	$	254.4
Sales price	570.3
Total Specialty Products and Solutions segment sales increase	$	824.7

Specialty Products and Solutions segment sales increased period over period, primarily due to the significantly higher price environment in the current year period and strong throughput. The favorable volumes impact was due to reliable operations and the absence of the unplanned downtown at our Shreveport facility in the prior year comparative period.

47

The components of the $268.0 million increase in Montana/Renewables segment sales for the six months ended June 30, 2022, as compared to the six months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Volume	$	(1.4)
Sales price	269.4
Total Montana/Renewables segment sales increase	$	268.0

Montana/Renewables segment sales increased primarily due to increased sales prices as a result of the significantly higher price environment in the current year period. Sales volumes were relatively flat between the two comparative periods.

The components of the $21.9 million increase in Performance Brands segment sales for the six months ended June 30, 2022, as compared to the six months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Volume	$	0.4
Sales price	21.5
Total Performance Brands segment sales increase	$	21.9

Performance Brands segment sales increased primarily due to the higher price environment.

Gross Profit. Gross profit increased $199.5 million, or 871.2%, to $176.6 million in the six months ended June 30, 2022, from a $22.9 million gross loss in the same period in 2021. Gross profit (loss) for our business segments were as follows:

	Six Months Ended June 30,
	2022			2021			% Change
	(Dollars in millions, except per barrel data)
Gross profit by segment:
Specialty Products and Solutions:
Gross profit (loss)	$	105.8		$	(30.6)		445.8	%
Percentage of sales	6.1		%	(3.3)		%	9.4	%
Specialty Products and Solutions gross profit (loss) per barrel	$	9.51		$	(3.51)		370.9	%
Montana/Renewables:
Gross profit (loss)	$	43.3		$	(32.2)		234.5	%
Percentage of sales	7.0		%	(9.1)		%	16.1	%
Montana/Renewables gross profit (loss) per barrel	$	8.54		$	(6.33)		234.9	%
Performance Brands:
Gross profit	$	27.5		$	39.9		(31.1)	%
Percentage of sales	17.9		%	30.4		%	(12.5)	%
Performance Brands gross profit per barrel	$	100.00		$	145.62		(31.3)	%
Total gross profit (loss)	$	176.6		$	(22.9)		871.2	%
Percentage of sales	7.0		%	(1.6)		%	8.6	%

48

The components of the $136.4 million increase in Specialty Products and Solutions segment gross profit for the six months ended June 30, 2022, as compared to the six months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Six months ended June 30, 2021 reported gross profit (loss)	$	(30.6)
Cost of materials	(466.7)
Operating costs	(11.3)
LCM / LIFO inventory adjustments	(25.6)
Volumes	57.8
Sales price	570.3
RINs expense	11.9
Six months ended June 30, 2022 reported gross profit	$	105.8

The increase in Specialty Products and Solutions segment gross profit for the six months ended June 30, 2022, as compared to the same period in 2021, was primarily due to stronger net unit margins as a result of strong specialty market demand, coupled with a favorable volumes impact driven by the absence in the current year period of the planned turnaround and unplanned downtime at our Shreveport facility in the prior year comparative period. Additionally, the results reflect lower RINs expense as a result of lower RINs prices than the comparable period a year ago. These impacts were partially offset by higher operating costs due to higher utility costs.

The components of the $75.5 million increase in Montana/Renewables segment gross profit for the six months ended June 30, 2022, as compared to the six months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Six months ended June 30, 2021 reported gross profit (loss)	$	(32.2)
Cost of materials	(185.9)
LCM / LIFO inventory adjustments	(7.4)
Volumes	(0.3)
Operating costs	(12.0)
RINs expense	11.7
Sales price	269.4
Six months ended June 30, 2022 reported gross profit	$	43.3

The increase in Montana/Renewables segment gross profit for the six months ended June 30, 2022, as compared to the same period in 2021, was primarily due to stronger net unit margins and lower RINs expense. These factors were partially offset by an increase in operating costs driven by higher utility costs.

The components of the $12.4 million decrease in Performance Brands segment gross profit for the six months ended June 30, 2022, as compared to the six months ended June 30, 2021, were as follows:

	Dollar Change
	(In millions)
Six months ended June 30, 2021 reported gross profit	$	39.9
Cost of materials	(32.1)
LCM / LIFO inventory adjustments	(0.3)
Volumes	0.2
Operating costs	(1.7)
Sales price	21.5
Six months ended June 30, 2022 reported gross profit	$	27.5

The decrease in Performance Brands segment gross profit for the six months ended June 30, 2022, as compared to the same period in 2021, was primarily driven by higher material and feedstock costs and supply chain challenges that resulted in higher operating costs and a growing sales order backlog. These impacts were partially offset by higher sales prices.

49

General and administrative. General and administrative expenses decreased $11.3 million, or 17.0%, to $55.1 million in the six months ended June 30, 2022, from $66.4 million in the same period in 2021. The decrease was primarily due to a $14.1 million decrease in equity-based compensation related expenses, which was primarily the result of changes in the Company’s unit price.

Interest expense. Interest expense increased $23.1 million, or 32.5%, to $94.2 million in the six months ended June 30, 2022, from $71.1 million in the same period in 2021. The increase was primarily due to interest expense incurred for our MRL credit facility in the current year period, which was absent the prior year comparative period, and 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 $89.7 million loss on derivative instruments in the six months ended June 30, 2022, compared to a $12.1 million loss in the same period in 2021. The $14.1 million realized loss on derivative instruments in the current year period was primarily due to the settlement of our crack spread swaps positions during the period. The unrealized loss on derivative instruments was primarily the result of a $45.5 million unrealized loss on crack spread swaps positions, coupled with the unrealized loss on the inventory financing embedded derivative of $30.1 million in the current year period, compared to an unrealized loss of $14.5 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 2021 Annual Report. There have been no material changes in that information other than as discussed below. Also, see Note 7 — “Inventory Financing Agreements” and Note 8 — “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:

	Six Months Ended June 30,
	2022		2021
	(In millions)
Net cash provided by (used in) operating activities	$	86.8	$	(89.3)
Net cash used in investing activities	(178.6)		(16.7)
Net cash provided by (used in) financing activities	(2.6)		31.1
Net decrease in cash and cash equivalents	$	(94.4)	$	(74.9)

Operating Activities. Operating activities provided cash of $86.8 million during the six months ended June 30, 2022 compared to using cash of $89.3 million during the same period in 2021. The change was impacted by a decrease in net loss of $113.7 million and a decrease in the cash required for working capital.

Investing Activities. Investing activities used cash of $178.6 million during the six months ended June 30, 2022 compared to a use of cash of $16.7 million during the same period in 2021. The change is related to an increase in cash expenditures for additions to property, plant and equipment in the current year in comparison to the prior year. The cash expenditures for additions to property, plant and equipment in the current year are mainly related to our renewable diesel project.

50

Financing Activities. Financing activities used cash of $2.6 million in the six months ended June 30, 2022 compared to providing cash of $31.1 million during the same period in 2021. The change is primarily due to $70.0 million of proceeds received from our Shreveport terminal asset financing arrangement in the prior year comparative period, which was partially offset by $16.7 million of proceeds we received in the current year period from our MRL asset financing arrangement.

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):

	Six Months Ended June 30,
	2022		2021
	(In millions)
Capital improvement expenditures	$	152.0	$	2.9
Replacement capital expenditures	24.3		12.6
Environmental capital expenditures	2.5		1.3
Turnaround capital expenditures	17.5		32.2
Total	$	196.3	$	49.0

2022 Capital Spending Forecast

Excluding MRL capital expenditures, we are forecasting total capital expenditures of approximately $135 million to $165 million in 2022, of which $59.3 million was spent in the first six months of 2022. Forecasted capital expenditures related to our Montana Renewable Diesel project will be funded, in part, by cash on hand and cash flows from operations. In addition to this, our forecasted capital expenditures related to MRL include amounts for the construction of a new renewable hydrogen plant, $50.0 million of which will be financed through our Master Lease Agreement with Stonebriar. We anticipate that capital expenditure requirements will be provided primarily through cash flow from operations, cash on hand, available borrowings under our revolving credit facility and 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.

Debt and Credit Facilities

As of June 30, 2022, our primary debt and credit instruments consisted of the following:

•$500.0 million senior secured revolving credit facility maturing in January 2027 (“revolving credit facility”);

•$315.6 million senior secured term loan facility (the “MRL Credit Facility”);

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

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

•$325.0 million of 8.125% Senior Notes due 2027 (“2027 Notes”); and

•$16.7 million of financing through our MRL asset financing arrangement.

We were in compliance with all covenants under the debt instruments in place as of June 30, 2022 and believe we have adequate liquidity to conduct our business.

On January 20, 2022, we issued and sold $325.0 million in aggregate principal amount of our 2027 Notes, in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933 to eligible purchasers at par. We received net proceeds of $319.1 million, after deducting the initial purchasers’ discount and offering expenses.

51

On January 12, 2022, we issued a notice of conditional redemption for $325.0 million in aggregate principal amount of the 2023 Notes at a redemption price of par, plus accrued and unpaid interest to the redemption date of February 11, 2022, conditioned on the completion of an offering of at least $300.0 million aggregate principal amount of senior debt securities on or before February 11, 2022. As the conditions precedent were met on January 20, 2022, we funded the redemption of the 2023 Notes with the net proceeds from the offering of the 2027 Notes and the remainder from cash on hand. In conjunction with the redemption, we incurred debt extinguishment costs of $1.0 million.

On January 20, 2022, we entered into the Credit Facility Amendment governing our senior secured revolving credit facility, which among other changes, (a) extends the term of the revolving credit facility for five years from the date of the Credit Facility Amendment, (b) reduces aggregate commitments under the revolving credit facility to $500.0 million, which includes a FILO tranche, and (c) replaces LIBOR as a reference interest rate with a new reference interest rate based on daily SOFR.

The borrowing base on our revolving credit facility increased from approximately $355.0 million as of June 30, 2021, to approximately $500.0 million at June 30, 2022, resulting in a corresponding increase in our borrowing availability from approximately $254.1 million at June 30, 2021, to approximately $456.1 million at June 30, 2022. Total liquidity, consisting of unrestricted cash and available funds under our revolving credit facility, increased from $288.6 million at June 30, 2021 to $470.1 million at June 30, 2022. Unrestricted cash excludes amounts held by MRL, an unrestricted subsidiary of the Company.

Inventory Financing

Please refer to Note 7 - “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 June 30, 2022, our principal sources of short-term liquidity were (i) $456.1 million of availability under our revolving credit facility, (ii) inventory financing agreements related to the Great Falls and Shreveport refineries and (iii) $14.0 million of unrestricted cash on hand. Unrestricted cash excludes amounts held by MRL, an unrestricted subsidiary of the Company. 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 8 - “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 June 30, 2022 we had $315.6 million in secured loan facility, $200.0 million in 2024 Secured Notes, $550.0 million in 2025 Notes, and $325.0 million in 2027 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 June 30, 2022, we had $315.6 million of debt outstanding for the MRL Credit Facility, $61.5 million of other debt outstanding for the Shreveport terminal asset financing arrangement, and $16.7 million of financing for our MRL asset financing arrangement. The MRL Credit Facility is secured by substantially all of the assets of MRL and a pledge of 100% of the equity interest in MRL held by Montana Renewables Holdings. Borrowings under the MRL Credit Facility are obligations of our unrestricted subsidiaries MRL and Montana Renewables Holdings solely, and are non-recourse to the Company and its restricted subsidiaries.

In January 2022, we issued and sold $325.0 million in aggregate principal amount of the 2027 Notes, the proceeds of which were used, together with cash on hand, to fund the redemption of the 2023 Notes.

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 8 — “Long-Term Debt” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report and Note 9 — “Long-Term Debt” in Part II, Item 8 “Financial Statements and Supplementary Data” of our 2021 Annual Report.

52

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 2021 Annual Report.

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 2021 Annual Report.

53

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks from adverse changes in commodity prices, the price of credits needed to comply with governmental programs, interest rates and foreign currency exchange rates. Information relating to quantitative and qualitative disclosures about material market risk is set forth below.

Commodity Price Risk

Derivative Instruments

We are exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in our fuel products segment), natural gas and precious metals. We use various strategies to reduce our exposure to commodity price risk. We do not attempt to eliminate all of our risk as the costs of such actions are believed to be too high in relation to the risk posed to our future cash flows, earnings and liquidity. The strategies we use to reduce our risk utilize both physical forward contracts and financially settled derivative instruments, such as swaps, collars, options and futures, to attempt to reduce our exposure with respect to:

•crude oil purchases and sales;

•refined product sales and purchases;

•natural gas purchases;

•precious metals; and

•fluctuations in the value of crude oil between geographic regions and between the different types of crude oil such as NYMEX WTI, Light Louisiana Sweet, WCS, WTI Midland, Mixed Sweet Blend, Magellan East Houston and ICE Brent.

We manage our exposure to commodity markets, credit, volumetric and liquidity risks to manage our 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 our derivative instruments will affect our 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. We do not speculate with derivative instruments or other contractual arrangements that are not associated with our business objectives. Speculation is defined as increasing our natural position above the maximum position of our physical assets or trading in commodities, currencies or other risk bearing assets that are not associated with our business activities and objectives. Our positions are monitored routinely by a risk management committee and discussed with the board of directors of our general partner quarterly to ensure compliance with our stated risk management policy and documented risk management strategies. All strategies are reviewed on an ongoing basis by our risk management committee, which will add, remove or revise strategies in anticipation of changes in market conditions and/or in risk profiles. These changes in strategies are to position us in relation to our risk exposures in an attempt to capture market opportunities as they arise.

Please read Note 9 — “Derivatives” in the notes to our unaudited condensed consolidated financial statements under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” for a discussion of the accounting treatment for the various types of derivative instruments, for a further discussion of our hedging policies and for more information relating to our implied crack spreads of crude oil, diesel, and gasoline derivative instruments.

Our derivative instruments and overall hedging positions are monitored regularly by our risk management committee, which includes executive officers. The risk management committee reviews market information and our hedging positions regularly to determine if additional derivatives activity is advised. A summary of derivative positions and a summary of hedging strategy are presented to our general partner’s Board of Directors quarterly.

Compliance Price Risk

Renewable Identification Numbers

We are exposed to market risks related to the volatility in the price of credits needed to comply with governmental programs. The EPA sets annual volume obligations for the percentage of renewable fuels that must be blended into transportation fuels consumed in the U.S., and as a producer of transportation fuels from petroleum, we are subject to those obligations. To the extent we are unable to physically blend renewable fuels to satisfy the EPA requirement, we may purchase RINs in the open market to satisfy the annual obligations. We have not entered into any derivative instruments to manage this risk.

Holding other variables related to RINs obligations constant, a $1.00 increase in the price of RINs as of June 30, 2022, would be expected to have a negative impact on Net income (loss) for 2022 of approximately $245.4 million.

54

Interest Rate Risk

Our exposure to interest rate changes on fixed and variable rate debt is limited to the fair value of the debt issued, which would not have a material impact on our earnings or cash flows. The following table provides information about the fair value of our fixed and variable rate debt obligations as of June 30, 2022 and December 31, 2021, which we disclose in Note 8 — “Long-Term Debt” and Note 10 — “Fair Value Measurements” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements.”

	June 30, 2022				December 31, 2021
	Fair Value		Carrying Value		Fair Value		Carrying Value
	(In millions)
Financial Instrument:
2023 Notes	$	—	$	—	$	325.6	$	322.3
2024 Secured Notes	$	205.2	$	199.1	$	217.2	$	198.8
2025 Notes	$	523.5	$	544.3	$	598.1	$	543.2
2027 Notes	$	277.5	$	320.8	$	—	$	—
Revolving credit facility	$	—	$	(3.5)	$	—	$	(2.0)
MRL credit facility	$	315.6	$	308.9	$	303.5	$	296.2
MRL asset financing arrangement	$	16.7	$	16.7	$	—	$	—

For our variable rate debt, if any, changes in interest rates generally do not impact the fair value of the debt instrument but may impact our future earnings and cash flows. We had a $500.0 million revolving credit facility as of June 30, 2022, with borrowings bearing interest at the prime rate or SOFR, at our option, plus the applicable margin. Borrowings under this facility are variable. We had no outstanding variable rate debt as of June 30, 2022 and December 31, 2021, respectively.

Foreign Currency Risk

We have minimal exposure to foreign currency risk and as such the cost of hedging this risk is viewed to be in excess of the benefit of further reductions in our exposure to foreign currency exchange rate fluctuations.

55

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 effective as of June 30, 2022.

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 June 30, 2022, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

56

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 6 — “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 2021 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 2021 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.

57

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 Todd Borgmann.
31.2*	Sarbanes-Oxley Section 302 certification of Vincent Donargo.
32.1**	Section 1350 certification of Todd Borgmann and Vincent Donargo.
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 June 30, 2022, formatted in Inline XBRL (included within the Exhibit 101 attachments)
*	Filed herewith.
**	Furnished herewith.

58

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:	August 5, 2022	By:	/s/ Vincent Donargo
			Vincent Donargo
			Executive Vice President and Chief Financial Officer of Calumet GP, LLC
			(Authorized Person and Principal Financial Officer)

59

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, 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 June 30, 2022;

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: August 5, 2022	/s/ Todd Borgmann
	Todd Borgmann
	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, Vincent Donargo, 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 June 30, 2022;

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: August 5, 2022	/s/ Vincent Donargo
	Vincent Donargo
	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 June 30, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Todd Borgmann, Chief Executive Officer of Calumet GP, LLC, the general partner of the Partnership (the “General Partner”), and Vincent Donargo, 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.

August 5, 2022	/s/ Todd Borgmann
	Todd Borgmann
	Chief Executive Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P.
	(Principal Executive Officer)

August 5, 2022	/s/ Vincent Donargo
	Vincent Donargo
	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	6 Months Ended
	Jun. 30, 2022	Aug. 05, 2022
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	Jun. 30, 2022
Entity Tax Identification Number	35-1811116
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
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		79,150,108

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 27.5	$ 38.1
Accounts Receivable, after Allowance for Credit Loss	373.7	216.8
Accounts receivable, net:
Other	27.9	36.2
Total accounts receivable	401.6	253.0
Inventories	325.5	326.6
Prepaid expenses and other current assets	19.5	14.9
Total current assets	774.1	632.6
Property, plant and equipment, net	1,149.7	949.7
Restricted Cash, Noncurrent	0.0	83.8
Other noncurrent assets, net	429.9	461.8
Total assets	2,353.7	2,127.9
Current liabilities:
Accounts payable	473.5	301.0
Accrued interest payable	34.4	27.7
Accrued salaries, wages and benefits	49.8	93.7
Current portion RINs Obligation	392.9	200.1
Derivative Liability, Current	39.0	0.0
Other current liabilities	102.9	96.9
Current portion of long-term debt	7.5	7.4
Total current liabilities	1,297.7	899.8
Other long-term liabilities	91.0	115.6
Long-term RINs obligation, less current portion	0.0	78.8
Long-term debt, less current portion	1,442.6	1,418.8
Total liabilities	2,831.3	2,513.0
Partners’ capital (deficit):
Partners' Capital	(477.6)	(385.1)
Total liabilities and partners’ capital (deficit)	2,353.7	2,127.9
Purchase and Supply Commitment, current liability	197.7	173.0
Limited Partner
Partners’ capital (deficit):
Partners' Capital	(469.2)	(378.8)
General Partner [Member]
Partners’ capital (deficit):
Partners' Capital	1.6	3.8
AOCI Attributable to Parent [Member]
Partners’ capital (deficit):
Partners' Capital	$ (10.0)	$ (10.1)

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Accounts Receivable, Allowance for Credit Loss	$ 4.1	$ 2.0
Long-term Debt and Lease Obligation	1,442.6	1,418.8
Partners' Capital	(477.6)	(385.1)
Current portion RINs Obligation	$ 392.9	$ 200.1
Limited Partner
Limited partners’ interest units issued (in shares)	79,150,108	78,676,262
Limited Partners' Capital Account, Units Outstanding	79,150,108	78,676,262
Partners' Capital	$ (469.2)	$ (378.8)

XML

Unaudited Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Sales	$ 1,424,000,000	$ 807,000,000.0	$ 2,521,900,000	$ 1,407,300,000
Cost of sales	1,280,100,000	787,900,000	2,345,300,000	1,430,200,000
Gross profit (loss)	143,900,000	19,100,000	176,600,000	(22,900,000)
Operating costs and expenses:
Selling	16,200,000	14,500,000	28,800,000	27,600,000
General and administrative	22,500,000	29,700,000	55,100,000	66,400,000
Other Operating Income (Expense), Net	9,500,000	8,400,000	14,300,000	23,300,000
Operating income (loss)	95,700,000	(33,500,000)	78,400,000	(140,200,000)
Other expense:
Interest expense	(42,600,000)	(36,900,000)	(94,200,000)	(71,100,000)
Loss on derivative instruments	(67,600,000)	(6,900,000)	(89,700,000)	(12,100,000)
Other expense	200,000	200,000	4,000,000.0	0
Total other expense	(110,400,000)	(44,000,000.0)	(187,900,000)	(83,200,000)
Net loss before income taxes	(14,700,000)	(77,500,000)	(109,500,000)	(223,400,000)
Income tax expense from continuing operations	600,000	900,000	1,300,000	1,100,000
Net loss	(15,300,000)	(78,400,000)	(110,800,000)	(224,500,000)
General partner’s interest in net loss	(300,000)	(1,600,000)	(2,200,000)	(4,500,000)
Other Operating Income (Expense), Net	(9,500,000)	(8,400,000)	(14,300,000)	(23,300,000)
Net income (loss) available to limited partners	$ (15,000,000.0)	$ (76,800,000)	$ (108,600,000)	$ (220,000,000.0)
Weighted Average Number of Shares Outstanding, Basic	79,424,383	78,929,561	79,241,515	78,782,802
Weighted average limited partner units outstanding:
Weighted Average Number of Shares Outstanding, Basic	79,424,383	78,929,561	79,241,515	78,782,802
Earnings Per Share [Abstract]
Limited partners' interest basic and diluted net loss per unit	$ (0.19)	$ (0.97)	$ (1.37)	$ (2.79)
Sales	1,424,000,000	807,000,000.0	2,521,900,000	1,407,300,000
Cost of Goods and Services Sold	1,280,100,000	787,900,000	2,345,300,000	1,430,200,000
Selling	16,200,000	14,500,000	28,800,000	27,600,000
General and administrative	22,500,000	29,700,000	55,100,000	66,400,000
Interest expense	42,600,000	36,900,000	94,200,000	71,100,000
Loss on derivative instruments	(67,600,000)	(6,900,000)	(89,700,000)	(12,100,000)
Income tax expense from continuing operations	600,000	900,000	1,300,000	1,100,000
Net Income (Loss) Allocated to General Partners	$ 300,000	$ 1,600,000	$ 2,200,000	$ 4,500,000
Weighted Average Number of Shares Outstanding, Basic	79,424,383	78,929,561	79,241,515	78,782,802
Other Operating Income (Expense), Net	$ (9,500,000)	$ (8,400,000)	$ (14,300,000)	$ (23,300,000)
Other Nonoperating Income (Expense)	$ (200,000)	$ (200,000)	$ (4,000,000.0)	$ 0
Weighted Average Number of Shares Outstanding, Diluted	79,424,383	78,929,561	79,241,515	78,782,802
Limited partners' interest basic and diluted net loss per unit	$ (0.19)	$ (0.97)	$ (1.37)	$ (2.79)
General Partner [Member]
Other expense:
Net loss	$ (300,000)	$ (1,600,000)	$ (2,200,000)	$ (4,500,000)

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Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net loss	$ (15.3)	$ (78.4)	$ (110.8)	$ (224.5)
Defined benefit pension and retiree health benefit plans	0.0	0.1	0.1	0.2
Total other comprehensive income	0.0	0.1	0.1	0.2
Comprehensive loss attributable to partners’ capital (deficit)	(15.3)	(78.3)	(110.7)	(224.3)
General Partner [Member]
Net loss	(0.3)	(1.6)	(2.2)	(4.5)
Total other comprehensive income		0.0	0.0	0.0
Limited Partner
Net loss	(15.0)	(76.8)	(108.6)	(220.0)
Total other comprehensive income		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		$ 0.1	$ 0.1	$ 0.2

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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, 2020	$ (128.6)	$ 9.0	$ (125.3)	$ (12.3)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.2	0.0	0.0	0.2
Net loss	(224.5)	(4.5)	(220.0)	0.0
Amortization of phantom units	1.8	0.0	1.8	0.0
Payment, Tax Withholding, Share-based Payment Arrangement	(0.6)	0.0	(0.6)	0.0
End of Period at Jun. 30, 2021	(351.7)	4.5	(344.1)	(12.1)
Beginning of Period at Mar. 31, 2021	(273.5)	6.1	(267.4)	(12.2)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.1	0.0	0.0	0.1
Net loss	(78.4)	(1.6)	(76.8)	0.0
Amortization of phantom units	0.1	0.0	0.1	0.0
End of Period at Jun. 30, 2021	(351.7)	4.5	(344.1)	(12.1)
Beginning of Period at Dec. 31, 2021	(385.1)	3.8	(378.8)	(10.1)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.1	0.0	0.0	0.1
Net loss	(110.8)	(2.2)	(108.6)	0.0
Amortization of phantom units	2.2	0.0	2.2	0.0
Payment, Tax Withholding, Share-based Payment Arrangement	(4.1)	0.0	(4.1)	0.0
Settlement of phantom units	6.6	0.0	6.6	0.0
Modification of phantom units	13.5	0.0	13.5	0.0
End of Period at Jun. 30, 2022	(477.6)	1.6	(469.2)	(10.0)
Beginning of Period at Mar. 31, 2022	(463.8)	1.9	(455.7)	(10.0)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.0
Net loss	(15.3)	(0.3)	(15.0)	0.0
Amortization of phantom units	1.6	0.0	1.6	0.0
Payment, Tax Withholding, Share-based Payment Arrangement	(0.5)	0.0	(0.5)	0.0
Settlement of phantom units	0.4	0.0	0.4	0.0
End of Period at Jun. 30, 2022	$ (477.6)	$ 1.6	$ (469.2)	$ (10.0)

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Unaudited Condensed Consolidated Statements of Cash Flows $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
Operating activities
Net loss	$ (15.3)	$ (110.8)	$ (224.5)
Non-cash RINs expense		114.0	144.0
Unrealized (gain) loss on derivatives	53.5	75.6	13.2
Adjustments to reconcile net loss to net cash used in operating activities:
Other non-cash activities		54.1	44.0
Changes in assets and liabilities		(46.1)	(66.0)
Net cash provided by (used in) operating activities		86.8	(89.3)
Investing activities
Additions to property, plant and equipment		(178.8)	(16.7)
Payments for (Proceeds from) Other Investing Activities		0.2	0.0
Net cash used in investing activities		(178.6)	(16.7)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from borrowings — revolving credit facility		650.0	539.6
Repayments of borrowings — revolving credit facility		(650.0)	(574.3)
Proceeds from Issuance of Senior Long-Term Debt		325.0
Repayments of borrowings — senior notes		325.0	70.0
Proceeds from inventory financing agreements		1,008.4	420.8
Payments on inventory financing agreements		(1,014.4)	(347.6)
Proceeds from other financing obligations		16.7	70.0
other financing activities		(13.3)	(7.4)
Net cash provided by (used in) financing activities		(2.6)	31.1
Net decrease in cash, cash equivalents and restricted cash		(94.4)	(74.9)
Cash, cash equivalents and restricted cash at beginning of period		38.1
Cash and cash equivalents at end of period	27.5	27.5
Cash and cash equivalents	27.5	27.5
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	$ 27.5	27.5	34.5
Construction in Progress Expenditures Incurred but Not yet Paid		$ 116.6	$ 5.7

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Description of the Business

6 Months Ended

Jun. 30, 2022

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 June 30, 2022, the Company had 79,150,108 limited partner common units and 1,615,307 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2021 Annual Report on Form 10-K.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

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.

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash include all highly liquid investments with a maturity of three months or less at the time of purchase.

Restricted cash represents cash that is legally restricted under the MRL Credit Facility, and it is presented as a non-current asset because it is only available for capital additions related to the renewable diesel project.

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 volume obligations for the percentage of renewable fuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of transportation fuels from petroleum, the Company is subject to those obligations. 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 obligations.

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 RINs obligation in the condensed consolidated balance sheets. As of June 30, 2022, the Company’s RINs obligation for all outstanding compliance years is presented as a current liability in the condensed consolidated balance sheets. For the year ended December 31, 2021, the Company’s RINs obligations for compliance years 2019 and 2020 was presented as a current liability in the condensed consolidated balance sheets and the Company’s RINs obligation for compliance year 2021 was presented as a long-term liability in the condensed consolidated balance sheets. This 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 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 6 - “Commitments and Contingencies” for further information on the Company’s RINs obligation.

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Revenue Recognition Revenue Recognition	3 Months Ended
	Jun. 30, 2022
Revenue from Contract with Customer [Abstract]
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, 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.

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Inventories

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022 and 2021, 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 $186.5 million and $64.9 million higher than the carrying value of inventory as of June 30, 2022 and December 31, 2021, 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 7 - “Inventory Financing Agreements” related to the Great Falls and Shreveport refineries, respectively.

Inventories consist of the following (in millions):

	June 30, 2022						December 31, 2021
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	42.0	$	20.9	$	62.9	$	41.0	$	19.9	$	60.9
Work in process	60.9		23.4		84.3		52.5		28.5		81.0
Finished goods	125.0		53.3		178.3		121.1		63.6		184.7
	$	227.9	$	97.6	$	325.5	$	214.6	$	112.0	$	326.6

(1)Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 7 - “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 June 30, 2022 and 2021, the Company recorded a decrease in cost of sales in the unaudited condensed consolidated statements of operations of $1.2 million and $17.7 million, respectively.

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Leases (Notes)

6 Months Ended

Jun. 30, 2022

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 17 years, some of which include options to extend the lease for up to 33 years, and some of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases for the periods presented were as follows (in millions):

		June 30, 2022		December 31, 2021
Assets:	Classification:
Operating lease assets	Other noncurrent assets, net	$	129.3	$	157.7
Finance lease assets	Property, plant and equipment, net (1)	2.9		4.2
Total leased assets		$	132.2	$	161.9
Liabilities:
Current
Operating	Other current liabilities	$	66.8	$	65.1
Finance	Current portion of long-term debt	0.8		0.8
Non-current
Operating	Other long-term liabilities	63.2		93.1
Finance	Long-term debt, less current portion	2.7		3.2
Total lease liabilities		$	133.5	$	162.2

(1)Finance lease assets are recorded net of accumulated amortization of $3.8 million and $4.1 million as of June 30, 2022 and December 31, 2021, 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 periods presented were as follows (in millions).

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Costs:	Classification:	2022		2021		2022		2021
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	18.8	$	11.8	$	37.5	$	23.6
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.8		2.2		3.8		4.0
Variable operating lease cost (2)	Cost of Sales; SG&A Expenses	5.3		2.7		6.0		6.4
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.2		0.1		0.4		0.3
Interest on lease liabilities	Interest expense	0.1		0.1		1.2		0.2
Total lease cost		$	26.2	$	16.9	$	48.9	$	34.5

(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 June 30, 2022, 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
2022	$	37.3	$	0.6	$	37.9
2023	71.2		1.0		72.2
2024	12.5		1.0		13.5
2025	8.3		0.7		9.0
2026	3.8		0.6		4.4
Thereafter	9.6		0.2		9.8
Total	$	142.7	$	4.1	$	146.8
Less: Interest	12.7		0.6		13.3
Present value of lease liabilities	$	130.0	$	3.5	$	133.5
Less obligations due within one year	66.8		0.8		67.6
Long-term lease obligation	$	63.2	$	2.7	$	65.9

(1)As of June 30, 2022, 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 June 30, 2022.

(2)As of June 30, 2022, 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 June 30, 2022.

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:

	June 30, 2022		December 31, 2021
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	2.8		3.1
Finance leases	4.3		4.8
Weighted-average discount rate:
Operating leases	6.9	%	7.0	%
Finance leases	7.3	%	7.3	%

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

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 specialty 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 volume blending requirements, and Calumet applied for SREs for 2019 and 2020 compliance years. On January 19, 2021, the Company filed lawsuits against 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. Both cases were stayed through June 30, 2022. The Company intends to file a second amended and supplemental complaint in both cases.

Subsequent to the Company filing those lawsuits, EPA extended the deadlines for 2019 RFS compliance on several occasions, most recently January 27, 2022. The current deadlines are as follows:

Compliance Year	Annual Compliance Report Due Date	RINs Retirement Due Date	Third Party Certification Due Date
2019	September 1, 2022	December 1, 2022	June 1, 2023
2020	December 1, 2022	February 1, 2023	June 1, 2023
2021	March 31, 2023	June 30, 2023	June 1, 2023
2022	Next quarterly reporting deadline after either the effective date of the 2023 standards or June 1, 2023, whichever is later	t + 90 days	Next June 1 annual attest engagement reporting deadline after the 2022 compliance reporting deadline

These deadlines may change through further regulatory action by EPA, including if EPA finalizes the proposed alternate compliance approach for small refineries, described below.

In April 2022, EPA issued new decisions denying 36 petitions from small refineries seeking SREs for program year 2018 that had been remanded by the U.S. Court of Appeals for the District of Columbia Circuit to EPA for reconsideration. EPA had previously granted 31 of these 36 petitions in August 2019, including petitions from the Company. Concurrent with the denial action, EPA provided an alternate compliance approach to allow these 31 small refineries to meet their 2018 compliance obligations without purchasing or redeeming additional RFS credits. In April 2022, the Company filed a petition for review of EPA’s denial of the 2018 SRE petition for the Shreveport refinery in the U.S. Court of Appeals for the Fifth Circuit. In June 2022, the Company filed a petition for review of EPA’s denial of the 2018 SRE petition for the Montana refinery in the U.S. Court of Appeals for the Ninth Circuit and filed a petition for review in the U.S. Court of Appeals for the D.C. Circuit challenging both of the EPA’s denials. In June 2022, Growth Energy filed an appeal in the U.S. Court of Appeals for the D.C. Circuit challenging the EPA’s decision to provide the alternate compliance approach to allow the 31 small refineries to meet their 2018 compliance obligations. The Company, along with other small refineries, has intervened in the Growth Energy appeal.

In June 2022, EPA issued final decisions denying all other pending petitions from small refineries seeking SREs, including petitions submitted by the Company seeking exemptions for program years 2019 and 2020, based on an across the board determination that no refinery suffers disproportionate hardship from the RFS program. Concurrent with the denial action, EPA proposed an alternate compliance approach for small refineries that, if finalized, would provide the small refineries more time to comply with their 2020 RFS obligations, including any RIN deficits from 2019 that are carried forward to the 2020 compliance year. Public comments on this proposal were due by July 28, 2022.

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 June 30, 2022 and December 31, 2021, the Company had a RINs Obligation recorded on the condensed consolidated balance sheets of $392.9 million and $278.9 million, respectively. Please read Note 2 - “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 June 30, 2022 and December 31, 2021, the Company had outstanding standby letters of credit of $43.9 million and $32.7 million, respectively, under its senior secured revolving credit facility (the “revolving credit facility”). Please read Note 8 - “Long-Term Debt” for additional information regarding the Company’s revolving credit facility. At June 30, 2022 and December 31, 2021, 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 $255.0 million and $300.0 million, respectively, which may be increased with the consent of the Agent (as defined in the Credit Agreement) to 90% of revolver commitments then in effect ($500.0 million at June 30, 2022 and $600.0 million at December 31, 2021).

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 June 30, 2022, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2022	$	2.0
2023	3.9
2024	4.0
2025	4.0
2026	4.0
Thereafter	2.4
Total (1)	$	20.3

(1)As of June 30, 2022, 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

6 Months Ended

Jun. 30, 2022

Other Commitments [Abstract]

Inventory Financing Agreement

Inventory Financing Agreements

The Company is party to several agreements with Macquarie to support the operations of the Great Falls refinery and the Shreveport refinery (as amended, the “Supply and Offtake Agreements”). Both agreements 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 June 30, 2022 and 2021, the Company incurred an expense of $4.8 million and $3.3 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 six months ended June 30, 2022 and 2021, the Company incurred an expense of $16.3 million and $4.7 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.

The Company has provided cash collateral of $19.9 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 June 30, 2022 and December 31, 2021, the Company had $27.9 million and $17.0 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 June 30, 2022.

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Long-Term Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

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

	June 30, 2022		December 31, 2021
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2028, weighted average interest rates of 3.3% and 2.4% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	$	—	$	—
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% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	—		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 9.5% and 9.4% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	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% for each of the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	550.0		550.0
Borrowings under the 2027 Notes, interest at a fixed rate of 8.125%, interest payments semiannually, borrowings due July 2027, effective interest rate of 8.4% for the six months ended June 30, 2022.	325.0		—
MRL Credit Facility, interest payments quarterly, borrowings due November 2024, effective interest rate of 12.5% for each of the six months ended June 30, 2022 and the year ended December 31, 2021.	315.6		303.5
Shreveport terminal asset financing arrangement	61.5		64.3
MRL asset financing arrangement	16.7		—
Other	—		0.7
Finance lease obligations, at various interest rates, interest and principal payments monthly through June 2028	3.5		4.0
Less unamortized debt issuance costs (1)	(20.6)		(17.8)
Less unamortized discounts	(1.6)		(3.5)
Total debt	$	1,450.1	$	1,426.2
Less current portion of long-term debt	7.5		7.4
Total long-term debt	$	1,442.6	$	1,418.8

(1)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 $20.6 million and $22.5 million at June 30, 2022 and December 31, 2021, respectively.

8.125% Senior Notes due 2027 (the “2027 Notes”)

On January 20, 2022, the Company issued and sold $325.0 million in aggregate principal amount of 2027 Notes, in a private placement pursuant to Section 4(a)(2) of the Securities Act to eligible purchasers at par. The Company received net proceeds of $319.1 million, after deducting the initial purchasers’ discount and offering expenses, which the Company used, along with cash on hand, to fund the redemption of $325.0 million aggregate principal amount of its 2023 Senior Notes at a redemption price of par, plus accrued and unpaid interest to the redemption date of February 11, 2022. In conjunction with the redemption of the 2023 Senior Notes, the Company recorded a loss from debt extinguishment of $1.0 million, which is reflected in other income (expense) in the unaudited condensed consolidated statements of operations for the six months ended June 30, 2022. Interest on the 2027 Notes is paid semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2022.

Senior Notes

The 2024 Secured Notes, 2025 Notes, and 2027 Notes (collectively, the “Senior Notes”) are subject to certain automatic customary releases, including the sale, disposition, or transfer of capital stock or substantially all of the assets of a subsidiary guarantor, designation of a subsidiary guarantor as unrestricted in accordance with the applicable indenture, exercise of legal defeasance option or covenant defeasance option, liquidation or dissolution of the subsidiary guarantor and a subsidiary guarantor ceases to both guarantee other Company debt and to be an obligor under the revolving credit facility. The Company’s operating subsidiaries may not sell or otherwise dispose of all or substantially all of their properties or assets to, or consolidate with or merge into, another company if such a sale would cause a default under the indentures governing the Senior Notes.

The indentures governing 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 June 30, 2022, 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 January 20, 2022, the Company entered into the Third Amendment to its revolving credit facility (the “Credit Facility Amendment”), which, among other changes, (a) extended the term of the revolving credit facility for five years from the date of the Credit Facility Amendment, (b) reduced aggregate commitments under the revolving credit facility to $500.0 million, which includes a FILO tranche, and (c) replaced LIBOR as a reference interest rate with a new reference interest rate based on Secured Overnight Financing Rate.

The borrowing capacity at June 30, 2022, under the revolving credit facility was approximately $500.0 million. As of June 30, 2022, the Company had no outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $43.9 million, leaving approximately $456.1 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, 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 June 30, 2022, the Company was in compliance with all covenants under the revolving credit facility.

Maturities of Long-Term Debt

As of June 30, 2022, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2022	$	3.8
2023	8.1
2024	524.5
2025	559.3
2026	10.0
Thereafter	366.6
Total	$	1,472.3

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

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 June 30, 2022 and December 31, 2021, 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 9 - “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 June 30, 2022 and December 31, 2021, 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 2 - “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):

	June 30, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Pension plan investments	$	28.8	$	—	$	—	$	28.8	$	34.5	$	—	$	—	$	34.5
Total recurring assets at fair value	$	28.8	$	—	$	—	$	28.8	$	34.5	$	—	$	—	$	34.5
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(58.0)	$	(58.0)	$	—	$	—	$	(27.9)	$	(27.9)
Crack spread swaps	—		—		(45.5)		(45.5)		—		—		—		—
Total derivative liabilities	$	—	$	—	$	(103.5)	$	(103.5)	$	—	$	—	$	(27.9)	$	(27.9)
RINs obligation	—		(392.9)		—		(392.9)		—		(278.9)		—		(278.9)
Precious metals obligations	(6.4)		—		—		(6.4)		(6.8)		—		—		(6.8)
Liability awards	(27.8)		—		—		(27.8)		(63.1)		—		—		(63.1)
Total recurring liabilities at fair value	$	(34.2)	$	(392.9)	$	(103.5)	$	(530.6)	$	(69.9)	$	(278.9)	$	(27.9)	$	(376.7)

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):

	Six Months Ended June 30,
	2022		2021
Fair value at January 1,	$	(27.9)	$	(3.5)
Realized gain (loss) on derivative instruments	(14.1)		1.1
Unrealized loss on derivative instruments	(75.6)		(13.2)
Settlements	14.1		(1.1)
Fair value at June 30,	$	(103.5)	$	(16.7)
Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of June 30,	$	(75.6)	$	(13.2)

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, cash equivalents and restricted cash

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

Debt

The estimated fair value of long-term debt at June 30, 2022 and December 31, 2021, consists primarily of senior notes. The estimated aggregate fair value of the Company’s 2023 Notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s 2024 Secured Notes and 2025 and 2027 Senior 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, MRL Credit Facility, MRL asset financing arrangement, finance lease obligations and other obligations are classified as Level 3. Please read Note 8 - “Long-Term Debt” for further information on long-term debt.

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

		June 30, 2022				December 31, 2021
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2023 Notes	1	$	—	$	—	$	325.6	$	322.3
2024 Secured Notes, 2025 Notes, and 2027 Notes	2	$	1,006.2	$	1,064.2	$	815.3	$	742.0
Revolving credit facility	3	$	—	$	(3.5)	$	—	$	(2.0)
MRL credit facility	3	$	315.6	$	308.9	$	303.5	$	296.2
Shreveport terminal asset financing arrangement	3	$	61.5	$	60.3	$	64.3	$	63.0
MRL asset financing arrangement	3	$	16.7	$	16.7	$	—	$	—
Finance leases and other obligations	3	$	3.5	$	3.5	$	4.7	$	4.7

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Earnings Per Unit

6 Months Ended

Jun. 30, 2022

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator for basic and diluted earnings per limited partner unit:
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Less:
General partner’s interest in net loss	(0.3)		(1.6)		(2.2)		(4.5)
Net loss attributable to limited partners	$	(15.0)	$	(76.8)	$	(108.6)	$	(220.0)
Denominator for basic and diluted earnings per limited partner unit:
Weighted average limited partner units outstanding (1)	79,424,383		78,929,561		79,241,515		78,782,802
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.19)	$	(0.97)	$	(1.37)	$	(2.79)

(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 June 30, 2022 and 2021 and for the six months ended June 30, 2022 and 2021

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Segments and Related Information

6 Months Ended

Jun. 30, 2022

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 Northwest Louisiana. In this segment, we manufacture and market a wide variety of solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for consumer-facing and industrial products.

•Montana/Renewables. The Montana/Renewables segment is composed of our Great Falls refinery and dual-train energy transition project. When our Great Falls renewable diesel facility is operational, we will process a variety of geographically advantaged renewable feedstocks into renewable diesel, sustainable aviation fuel, renewable hydrogen, renewable natural gas, renewable propane, and renewable naphtha that we expect to distribute into renewable markets in the western half of North America. At our Montana specialty refinery, we process Canadian crude oil into conventional gasoline, diesel, jet fuel and specialty grades of asphalt, with production sized to serve local markets.

•Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands. In this segment, we blend, package, and market high performance products through our Royal Purple, Bel-Ray, and TruFuel 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.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 3 - “Summary of Significant Accounting Policies,” of the Company’s 2021 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. 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 June 30, 2022 and 2021, is as follows (in millions):

Three Months Ended June 30, 2022	Specialty Products and Solutions (1) (2)		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	979.2	$	80.1	$	364.7	$	—	$	—	$	1,424.0
Inter-segment sales	7.0		—		—		—		(7.0)		—
Total sales	$	986.2	$	80.1	$	364.7	$	—	$	(7.0)	$	1,424.0
Adjusted EBITDA	$	123.5	$	3.7	$	68.6	$	(20.0)	$	—	$	175.8
Reconciling items to net loss:
Depreciation and amortization	16.1		2.8		9.5		1.9		—		30.3
LCM / LIFO gain	—		(0.2)		(1.0)		—		—		(1.2)
Interest expense	5.9		—		8.7		28.0		—		42.6
Unrealized loss on derivatives	53.5		—		—		—		—		53.5
RINs mark-to-market loss	44.7		—		24.0		—		—		68.7
Equity-based compensation and other items											(3.4)
Income tax expense											0.6
Net loss											$	(15.3)
Capital expenditures	$	19.2	$	0.3	$	99.8	$	—	$	—	$	119.3
PP&E, net	$	373.8	$	34.1	$	737.0	$	4.8	$	—	$	1,149.7

Three Months Ended June 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	543.8	$	65.2	$	198.0	$	—	$	—	$	807.0
Inter-segment sales	4.6		—		—		—		(4.6)		—
Total sales	$	548.4	$	65.2	$	198.0	$	—	$	(4.6)	$	807.0
Adjusted EBITDA	$	31.8	$	7.3	$	12.8	$	(19.6)	$	—	$	32.3
Reconciling items to net loss:
Depreciation and amortization	15.7		3.4		8.4		2.0		—		29.5
LCM / LIFO gain	(11.3)		(0.5)		(5.9)		—		—		(17.7)
Loss on impairment and disposal of assets	1.1		—		0.1		—		—		1.2
Interest expense	4.4		—		1.4		31.1		—		36.9
Unrealized loss on derivatives	6.5		—		0.4		—		—		6.9
RINs mark-to-market loss	29.9		—		18.3		—		—		48.2
Other non-recurring expenses											0.7
Equity-based compensation and other items											4.1
Income tax expense											0.9
Net loss											$	(78.4)
Capital expenditures	$	25.9	$	0.5	$	8.9	$	—	$	—	$	35.3
PP&E, net	$	390.0	$	33.5	$	453.9	$	12.5	$	—	$	889.9

Reportable segment information for the six months ended June 30, 2022 and 2021, is as follows (in millions):

Six Months Ended June 30, 2022	Specialty Products and Solutions (1) (2)		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,748.6	$	153.3	$	620.0	$	—	$	—	$	2,521.9
Inter-segment sales	12.6		—		—		—		(12.6)		—
Total sales	$	1,761.2	$	153.3	$	620.0	$	—	$	(12.6)	$	2,521.9
Adjusted EBITDA	$	151.6	$	9.0	$	77.6	$	(39.1)	$	—	$	199.1
Reconciling items to net loss:
Depreciation and amortization	32.0		5.6		19.0		3.9		—		60.5
LCM / LIFO gain	(3.4)		(0.2)		(3.6)		—		—		(7.2)
Interest expense	16.8		1.1		18.8		57.5		—		94.2
Unrealized loss on derivatives	71.1		—		4.5		—		—		75.6
RINs mark-to-market loss	50.8		—		27.3		—		—		78.1
Other non-recurring expenses											3.8
Equity-based compensation and other items											3.6
Income tax expense											1.3
Net loss											$	(110.8)
Capital expenditures	$	30.3	$	0.9	$	165.0	$	0.1	$	—	$	196.3
PP&E, net	$	373.8	$	34.1	$	737.0	$	4.8	$	—	$	1,149.7

Six Months Ended June 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	923.9	$	131.4	$	352.0	$	—	$	—	$	1,407.3
Inter-segment sales	8.1		—		—		—		(8.1)		—
Total sales	$	932.0	$	131.4	$	352.0	$	—	$	(8.1)	$	1,407.3
Adjusted EBITDA	$	29.6	$	23.3	$	10.8	$	(36.8)	$	—	$	26.9
Reconciling items to net loss:
Depreciation and amortization	32.6		6.8		17.0		4.0		—		60.4
LCM / LIFO gain	(28.9)		(0.5)		(11.0)		—		—		(40.4)
Loss on impairment and disposal of assets	1.8		—		0.1		—		—		1.9
Interest expense	6.7		0.1		1.6		62.7		—		71.1
Unrealized loss on derivatives	11.7		—		1.5		—		—		13.2
RINs mark-to-market loss	81.6		—		41.6		—		—		123.2
Other non-recurring expenses											3.2
Equity-based compensation and other items											17.7
Income tax expense											1.1
Net loss											$	(224.5)
Capital expenditures	$	36.7	$	1.0	$	11.3	$	—	$	—	$	49.0
PP&E, net	$	390.0	$	33.5	$	453.9	$	12.5	$	—	$	889.9

(1)For the three and six months ended June 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $13.9 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s business interruption insurance policy. The Company incurred business losses due to increased costs arising from a polar vortex that occurred in 2021 in northwest Louisiana. As a result, the Company filed a contingent business interruption claim. Specifically, the losses included a loss of throughput at the Shreveport refinery and additional transportation related expenses.

(2)For the three and six months ended June 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $4.4 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s property damage insurance policy as a result of damages caused by a polar vortex that occurred in 2021.

Geographic Information

International sales accounted for less than ten percent of consolidated sales in each of the three and six months ended June 30, 2022 and 2021.

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 products, and other specialty and fuels products. The following table sets forth the major product category sales for each segment for the three months ended June 30, 2022 and 2021 (dollars in millions):

	Three Months Ended June 30,
	2022				2021
Specialty Products and Solutions:
Lubricating oils	$	245.3	17.2	%	$	158.8	19.7	%
Solvents	120.6		8.5	%	75.6		9.4	%
Waxes	49.8		3.5	%	36.8		4.5	%
Fuels, asphalt and other by-products	563.5		39.6	%	272.6		33.8	%
Total	$	979.2	68.8	%	$	543.8	67.4	%
Montana/Renewables:
Gasoline	$	67.8	4.8	%	$	40.7	5.0	%
Diesel	180.8		12.7	%	84.1		10.4	%
Jet fuel	14.8		1.0	%	7.4		0.9	%
Asphalt, heavy fuel oils and other	101.3		7.1	%	65.8		8.2	%
Total	$	364.7	25.6	%	$	198.0	24.5	%
Performance Brands:	$	80.1	5.6	%	$	65.2	8.1	%
Consolidated sales	$	1,424.0	100.0	%	$	807.0	100.0	%

The following table sets forth the major product category sales for each segment for the six months ended June 30, 2022 and 2021 (dollars in millions):

	Six Months Ended June 30,
	2022				2021
Specialty Products and Solutions:
Lubricating oils	$	454.8	18.0	%	$	290.2	20.6	%
Solvents	212.6		8.5	%	141.3		10.0	%
Waxes	94.3		3.7	%	69.5		5.0	%
Fuels, asphalt and other by-products	986.9		39.1	%	422.9		30.1	%
Total	$	1,748.6	69.3	%	$	923.9	65.7	%
Montana/Renewables:
Gasoline	$	126.4	5.0	%	$	83.5	5.9	%
Diesel	297.3		11.9	%	149.1		10.6	%
Jet fuel	26.2		1.0	%	12.4		0.9	%
Asphalt, heavy fuel oils and other	170.1		6.7	%	107.0		7.6	%
Total	$	620.0	24.6	%	$	352.0	25.0	%
Performance Brands:	$	153.3	6.1	%	$	131.4	9.3	%
Consolidated sales	$	2,521.9	100.0	%	$	1,407.3	100.0	%

Major Customers

During the three and six months ended June 30, 2022 and 2021, the Company had no customer that represented 10% or greater of consolidated sales.

Major Suppliers

During the three months ended June 30, 2022 and 2021, the Company had two suppliers that supplied approximately 85.8% and 88.6%, respectively, of its crude oil supply.

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Subsequent Events (Notes)	6 Months Ended
	Jun. 30, 2022
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent EventsAs of July 31, 2022, the fair value of the Company’s derivative liabilities have decreased by approximately $18.0 million subsequent to June 30, 2022

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Organization, Consolidation and Presentation of Financial Statements (Policies)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The unaudited condensed consolidated financial statements of the Company as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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 June 30, 2022 and for the three and six months ended June 30, 2022 and 2021, 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]

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, 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 intermediates. Further, the Company 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 and control of the promised goods are transferred to the customer. 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 continue 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 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 June 30, 2022 and December 31, 2021 were $373.7 million and $216.8 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.

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 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 derivative liabilities or other noncurrent assets, net or other long-term 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 Company is exposed to credit risk in the event of nonperformance by its counterparties on these derivative transactions. The Company does not expect nonperformance on any derivative instruments, however, no assurances can be provided. The Company’s credit exposure related to these derivative instruments is represented by the fair value of contracts reported as derivative assets. As of June 30, 2022 and December 31, 2021, the Company had no counterparty relationships in which the derivatives held were in net assets. To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings. The Company primarily executes its derivative instruments with large financial institutions that have ratings of at least A3 and BBB+ by Moody’s and S&P, respectively. In the event of default, the Company would potentially be subject to losses on derivative instruments with mark-to-market gains. The Company requires collateral from its counterparties when the fair value of the derivatives exceeds agreed-upon thresholds in its master derivative contracts with these counterparties. No such collateral was held by the Company as of June 30, 2022 or December 31, 2021. Collateral received from counterparties is reported in other current liabilities, and collateral held by counterparties is reported in prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets and is not netted against derivative assets or liabilities. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. As of June 30, 2022 and December 31, 2021, the Company was not required to provide collateral to its counterparties.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 non-cash activities 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 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 Loss on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into crack spread swaps, crude oil 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 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, cash equivalents and restricted cash are each considered to be representative of their fair value.The estimated aggregate fair value of the Company’s 2023 Notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s 2024 Secured Notes and 2025 and 2027 Senior 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, MRL Credit Facility, MRL asset financing arrangement, finance lease obligations and other obligations 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 Northwest Louisiana. In this segment, we manufacture and market a wide variety of solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for consumer-facing and industrial products.

•Montana/Renewables. The Montana/Renewables segment is composed of our Great Falls refinery and dual-train energy transition project. When our Great Falls renewable diesel facility is operational, we will process a variety of geographically advantaged renewable feedstocks into renewable diesel, sustainable aviation fuel, renewable hydrogen, renewable natural gas, renewable propane, and renewable naphtha that we expect to distribute into renewable markets in the western half of North America. At our Montana specialty refinery, we process Canadian crude oil into conventional gasoline, diesel, jet fuel and specialty grades of asphalt, with production sized to serve local markets.

•Performance Brands. The Performance Brands segment includes our fast-growing portfolio of high-quality, high-performing brands. In this segment, we blend, package, and market high performance products through our Royal Purple, Bel-Ray, and TruFuel 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.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 3 - “Summary of Significant Accounting Policies,” of the Company’s 2021 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. 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.

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Revenue Recognition Shipping and Handling (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Revenue from Contract with Customer [Policy Text Block]

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, 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 intermediates. Further, the Company 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 and control of the promised goods are transferred to the customer. 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 continue 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 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 June 30, 2022 and December 31, 2021 were $373.7 million and $216.8 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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Leases (Policies)	6 Months Ended
	Jun. 30, 2022
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)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consist of the following (in millions):

	June 30, 2022						December 31, 2021
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	42.0	$	20.9	$	62.9	$	41.0	$	19.9	$	60.9
Work in process	60.9		23.4		84.3		52.5		28.5		81.0
Finished goods	125.0		53.3		178.3		121.1		63.6		184.7
	$	227.9	$	97.6	$	325.5	$	214.6	$	112.0	$	326.6

(1)Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 7 - “Inventory Financing Agreements” for further information.

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Leases (Tables)

6 Months Ended

Jun. 30, 2022

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:

	June 30, 2022		December 31, 2021
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	2.8		3.1
Finance leases	4.3		4.8
Weighted-average discount rate:
Operating leases	6.9	%	7.0	%
Finance leases	7.3	%	7.3	%

Leases - Maturity of Lease Liabilities [Table Text Block]

As of June 30, 2022, 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
2022	$	37.3	$	0.6	$	37.9
2023	71.2		1.0		72.2
2024	12.5		1.0		13.5
2025	8.3		0.7		9.0
2026	3.8		0.6		4.4
Thereafter	9.6		0.2		9.8
Total	$	142.7	$	4.1	$	146.8
Less: Interest	12.7		0.6		13.3
Present value of lease liabilities	$	130.0	$	3.5	$	133.5
Less obligations due within one year	66.8		0.8		67.6
Long-term lease obligation	$	63.2	$	2.7	$	65.9

(1)As of June 30, 2022, 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 June 30, 2022.

(2)As of June 30, 2022, 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 June 30, 2022.

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

Supplemental balance sheet information related to the Company’s leases for the periods presented were as follows (in millions):

		June 30, 2022		December 31, 2021
Assets:	Classification:
Operating lease assets	Other noncurrent assets, net	$	129.3	$	157.7
Finance lease assets	Property, plant and equipment, net (1)	2.9		4.2
Total leased assets		$	132.2	$	161.9
Liabilities:
Current
Operating	Other current liabilities	$	66.8	$	65.1
Finance	Current portion of long-term debt	0.8		0.8
Non-current
Operating	Other long-term liabilities	63.2		93.1
Finance	Long-term debt, less current portion	2.7		3.2
Total lease liabilities		$	133.5	$	162.2

(1)Finance lease assets are recorded net of accumulated amortization of $3.8 million and $4.1 million as of June 30, 2022 and December 31, 2021, respectively.

Lease, Cost [Table Text Block]

The components of lease expense related to the Company’s leases for the periods presented were as follows (in millions).

		Three Months Ended June 30,				Six Months Ended June 30,
Lease Costs:	Classification:	2022		2021		2022		2021
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	18.8	$	11.8	$	37.5	$	23.6
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.8		2.2		3.8		4.0
Variable operating lease cost (2)	Cost of Sales; SG&A Expenses	5.3		2.7		6.0		6.4
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.2		0.1		0.4		0.3
Interest on lease liabilities	Interest expense	0.1		0.1		1.2		0.2
Total lease cost		$	26.2	$	16.9	$	48.9	$	34.5

(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)

6 Months Ended

Jun. 30, 2022

Debt Instrument [Line Items]

Summary of Long-Term Debt

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

	June 30, 2022		December 31, 2021
Borrowings under amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2028, weighted average interest rates of 3.3% and 2.4% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	$	—	$	—
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% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	—		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 9.5% and 9.4% for the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	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% for each of the six months ended June 30, 2022 and the year ended December 31, 2021, respectively.	550.0		550.0
Borrowings under the 2027 Notes, interest at a fixed rate of 8.125%, interest payments semiannually, borrowings due July 2027, effective interest rate of 8.4% for the six months ended June 30, 2022.	325.0		—
MRL Credit Facility, interest payments quarterly, borrowings due November 2024, effective interest rate of 12.5% for each of the six months ended June 30, 2022 and the year ended December 31, 2021.	315.6		303.5
Shreveport terminal asset financing arrangement	61.5		64.3
MRL asset financing arrangement	16.7		—
Other	—		0.7
Finance lease obligations, at various interest rates, interest and principal payments monthly through June 2028	3.5		4.0
Less unamortized debt issuance costs (1)	(20.6)		(17.8)
Less unamortized discounts	(1.6)		(3.5)
Total debt	$	1,450.1	$	1,426.2
Less current portion of long-term debt	7.5		7.4
Total long-term debt	$	1,442.6	$	1,418.8

(1)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 $20.6 million and $22.5 million at June 30, 2022 and December 31, 2021, respectively.

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

As of June 30, 2022, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2022	$	3.8
2023	8.1
2024	524.5
2025	559.3
2026	10.0
Thereafter	366.6
Total	$	1,472.3

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Derivatives (Tables)

6 Months Ended

Jun. 30, 2022

Derivative [Line Items]

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):

		June 30, 2022						December 31, 2021
	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	$	(43.0)	$	—	$	(43.0)	$	(17.4)	$	—	$	(17.4)
Crack spread swaps	Derivative liabilities / Other long-term liabilities	$	(58.3)	$	12.8	$	(45.5)	$	—	$	—	$	—
Montana/Renewables segment:
Inventory financing obligation	Obligations under inventory financing agreements	(15.0)		—		(15.0)		(10.5)		—		(10.5)
Total derivative instruments		$	(116.3)	$	12.8	$	(103.5)	$	(27.9)	$	—	$	(27.9)

Schedule of Derivative Positions

At June 30, 2022, the Company had the following notional contract volumes related to outstanding derivative instruments:

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 June 30, 2022 and 2021, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Loss on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Loss on Derivative Instruments
	Three Months Ended June 30,				Three Months Ended June 30,
	2022		2021		2022		2021
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(10.9)	$	(6.5)
Crack spread swaps	(13.3)		—		(42.9)		—
Crude oil swaps	(0.8)		—		0.3		—
Montana/Renewables segment:
Inventory financing obligation	—		—		—		(0.4)
Total	$	(14.1)	$	—	$	(53.5)	$	(6.9)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the six months ended June 30, 2022 and 2021, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Loss on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Loss on Derivative Instruments
	Six Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Specialty Products and Solutions segment:
Inventory financing obligation	$	—	$	—	$	(25.6)	$	(11.7)
Crack spread swaps	(13.3)		—		(45.5)		—
Crude oil swaps	(0.8)		—		—		—
Montana/Renewables segment:
Inventory financing obligation	—		—		(4.5)		(2.8)
WCS crude oil basis swaps	—		1.1		—		1.3
Total	$	(14.1)	$	1.1	$	(75.6)	$	(13.2)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

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):

	June 30, 2022								December 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Pension plan investments	$	28.8	$	—	$	—	$	28.8	$	34.5	$	—	$	—	$	34.5
Total recurring assets at fair value	$	28.8	$	—	$	—	$	28.8	$	34.5	$	—	$	—	$	34.5
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	(58.0)	$	(58.0)	$	—	$	—	$	(27.9)	$	(27.9)
Crack spread swaps	—		—		(45.5)		(45.5)		—		—		—		—
Total derivative liabilities	$	—	$	—	$	(103.5)	$	(103.5)	$	—	$	—	$	(27.9)	$	(27.9)
RINs obligation	—		(392.9)		—		(392.9)		—		(278.9)		—		(278.9)
Precious metals obligations	(6.4)		—		—		(6.4)		(6.8)		—		—		(6.8)
Liability awards	(27.8)		—		—		(27.8)		(63.1)		—		—		(63.1)
Total recurring liabilities at fair value	$	(34.2)	$	(392.9)	$	(103.5)	$	(530.6)	$	(69.9)	$	(278.9)	$	(27.9)	$	(376.7)

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):

	Six Months Ended June 30,
	2022		2021
Fair value at January 1,	$	(27.9)	$	(3.5)
Realized gain (loss) on derivative instruments	(14.1)		1.1
Unrealized loss on derivative instruments	(75.6)		(13.2)
Settlements	14.1		(1.1)
Fair value at June 30,	$	(103.5)	$	(16.7)
Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of June 30,	$	(75.6)	$	(13.2)

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

		June 30, 2022				December 31, 2021
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2023 Notes	1	$	—	$	—	$	325.6	$	322.3
2024 Secured Notes, 2025 Notes, and 2027 Notes	2	$	1,006.2	$	1,064.2	$	815.3	$	742.0
Revolving credit facility	3	$	—	$	(3.5)	$	—	$	(2.0)
MRL credit facility	3	$	315.6	$	308.9	$	303.5	$	296.2
Shreveport terminal asset financing arrangement	3	$	61.5	$	60.3	$	64.3	$	63.0
MRL asset financing arrangement	3	$	16.7	$	16.7	$	—	$	—
Finance leases and other obligations	3	$	3.5	$	3.5	$	4.7	$	4.7

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Earnings Per Unit (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator for basic and diluted earnings per limited partner unit:
Net loss	$	(15.3)	$	(78.4)	$	(110.8)	$	(224.5)
Less:
General partner’s interest in net loss	(0.3)		(1.6)		(2.2)		(4.5)
Net loss attributable to limited partners	$	(15.0)	$	(76.8)	$	(108.6)	$	(220.0)
Denominator for basic and diluted earnings per limited partner unit:
Weighted average limited partner units outstanding (1)	79,424,383		78,929,561		79,241,515		78,782,802
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.19)	$	(0.97)	$	(1.37)	$	(2.79)

(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 June 30, 2022 and 2021 and for the six months ended June 30, 2022 and 2021

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Segments and Related Information (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2022

Segment Reporting [Abstract]

Schedule of Reportable Segment Information

Reportable segment information for the three months ended June 30, 2022 and 2021, is as follows (in millions):

Three Months Ended June 30, 2022	Specialty Products and Solutions (1) (2)		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	979.2	$	80.1	$	364.7	$	—	$	—	$	1,424.0
Inter-segment sales	7.0		—		—		—		(7.0)		—
Total sales	$	986.2	$	80.1	$	364.7	$	—	$	(7.0)	$	1,424.0
Adjusted EBITDA	$	123.5	$	3.7	$	68.6	$	(20.0)	$	—	$	175.8
Reconciling items to net loss:
Depreciation and amortization	16.1		2.8		9.5		1.9		—		30.3
LCM / LIFO gain	—		(0.2)		(1.0)		—		—		(1.2)
Interest expense	5.9		—		8.7		28.0		—		42.6
Unrealized loss on derivatives	53.5		—		—		—		—		53.5
RINs mark-to-market loss	44.7		—		24.0		—		—		68.7
Equity-based compensation and other items											(3.4)
Income tax expense											0.6
Net loss											$	(15.3)
Capital expenditures	$	19.2	$	0.3	$	99.8	$	—	$	—	$	119.3
PP&E, net	$	373.8	$	34.1	$	737.0	$	4.8	$	—	$	1,149.7

Three Months Ended June 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	543.8	$	65.2	$	198.0	$	—	$	—	$	807.0
Inter-segment sales	4.6		—		—		—		(4.6)		—
Total sales	$	548.4	$	65.2	$	198.0	$	—	$	(4.6)	$	807.0
Adjusted EBITDA	$	31.8	$	7.3	$	12.8	$	(19.6)	$	—	$	32.3
Reconciling items to net loss:
Depreciation and amortization	15.7		3.4		8.4		2.0		—		29.5
LCM / LIFO gain	(11.3)		(0.5)		(5.9)		—		—		(17.7)
Loss on impairment and disposal of assets	1.1		—		0.1		—		—		1.2
Interest expense	4.4		—		1.4		31.1		—		36.9
Unrealized loss on derivatives	6.5		—		0.4		—		—		6.9
RINs mark-to-market loss	29.9		—		18.3		—		—		48.2
Other non-recurring expenses											0.7
Equity-based compensation and other items											4.1
Income tax expense											0.9
Net loss											$	(78.4)
Capital expenditures	$	25.9	$	0.5	$	8.9	$	—	$	—	$	35.3
PP&E, net	$	390.0	$	33.5	$	453.9	$	12.5	$	—	$	889.9

Reportable segment information for the six months ended June 30, 2022 and 2021, is as follows (in millions):

Six Months Ended June 30, 2022	Specialty Products and Solutions (1) (2)		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,748.6	$	153.3	$	620.0	$	—	$	—	$	2,521.9
Inter-segment sales	12.6		—		—		—		(12.6)		—
Total sales	$	1,761.2	$	153.3	$	620.0	$	—	$	(12.6)	$	2,521.9
Adjusted EBITDA	$	151.6	$	9.0	$	77.6	$	(39.1)	$	—	$	199.1
Reconciling items to net loss:
Depreciation and amortization	32.0		5.6		19.0		3.9		—		60.5
LCM / LIFO gain	(3.4)		(0.2)		(3.6)		—		—		(7.2)
Interest expense	16.8		1.1		18.8		57.5		—		94.2
Unrealized loss on derivatives	71.1		—		4.5		—		—		75.6
RINs mark-to-market loss	50.8		—		27.3		—		—		78.1
Other non-recurring expenses											3.8
Equity-based compensation and other items											3.6
Income tax expense											1.3
Net loss											$	(110.8)
Capital expenditures	$	30.3	$	0.9	$	165.0	$	0.1	$	—	$	196.3
PP&E, net	$	373.8	$	34.1	$	737.0	$	4.8	$	—	$	1,149.7

Six Months Ended June 30, 2021	Specialty Products and Solutions		Performance Brands		Montana/Renewables		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	923.9	$	131.4	$	352.0	$	—	$	—	$	1,407.3
Inter-segment sales	8.1		—		—		—		(8.1)		—
Total sales	$	932.0	$	131.4	$	352.0	$	—	$	(8.1)	$	1,407.3
Adjusted EBITDA	$	29.6	$	23.3	$	10.8	$	(36.8)	$	—	$	26.9
Reconciling items to net loss:
Depreciation and amortization	32.6		6.8		17.0		4.0		—		60.4
LCM / LIFO gain	(28.9)		(0.5)		(11.0)		—		—		(40.4)
Loss on impairment and disposal of assets	1.8		—		0.1		—		—		1.9
Interest expense	6.7		0.1		1.6		62.7		—		71.1
Unrealized loss on derivatives	11.7		—		1.5		—		—		13.2
RINs mark-to-market loss	81.6		—		41.6		—		—		123.2
Other non-recurring expenses											3.2
Equity-based compensation and other items											17.7
Income tax expense											1.1
Net loss											$	(224.5)
Capital expenditures	$	36.7	$	1.0	$	11.3	$	—	$	—	$	49.0
PP&E, net	$	390.0	$	33.5	$	453.9	$	12.5	$	—	$	889.9

(1)For the three and six months ended June 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $13.9 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s business interruption insurance policy. The Company incurred business losses due to increased costs arising from a polar vortex that occurred in 2021 in northwest Louisiana. As a result, the Company filed a contingent business interruption claim. Specifically, the losses included a loss of throughput at the Shreveport refinery and additional transportation related expenses.

(2)For the three and six months ended June 30, 2022, Adjusted EBITDA for the Specialty Products and Solutions segment included a $4.4 million gain recorded in cost of sales in the unaudited condensed consolidated statements of operations for proceeds received under the Company’s property damage insurance policy as a result of damages caused by a polar vortex that occurred in 2021.

Schedule of Major Product Category Sales

	Three Months Ended June 30,
	2022				2021
Specialty Products and Solutions:
Lubricating oils	$	245.3	17.2	%	$	158.8	19.7	%
Solvents	120.6		8.5	%	75.6		9.4	%
Waxes	49.8		3.5	%	36.8		4.5	%
Fuels, asphalt and other by-products	563.5		39.6	%	272.6		33.8	%
Total	$	979.2	68.8	%	$	543.8	67.4	%
Montana/Renewables:
Gasoline	$	67.8	4.8	%	$	40.7	5.0	%
Diesel	180.8		12.7	%	84.1		10.4	%
Jet fuel	14.8		1.0	%	7.4		0.9	%
Asphalt, heavy fuel oils and other	101.3		7.1	%	65.8		8.2	%
Total	$	364.7	25.6	%	$	198.0	24.5	%
Performance Brands:	$	80.1	5.6	%	$	65.2	8.1	%
Consolidated sales	$	1,424.0	100.0	%	$	807.0	100.0	%

The following table sets forth the major product category sales for each segment for the six months ended June 30, 2022 and 2021 (dollars in millions):

	Six Months Ended June 30,
	2022				2021
Specialty Products and Solutions:
Lubricating oils	$	454.8	18.0	%	$	290.2	20.6	%
Solvents	212.6		8.5	%	141.3		10.0	%
Waxes	94.3		3.7	%	69.5		5.0	%
Fuels, asphalt and other by-products	986.9		39.1	%	422.9		30.1	%
Total	$	1,748.6	69.3	%	$	923.9	65.7	%
Montana/Renewables:
Gasoline	$	126.4	5.0	%	$	83.5	5.9	%
Diesel	297.3		11.9	%	149.1		10.6	%
Jet fuel	26.2		1.0	%	12.4		0.9	%
Asphalt, heavy fuel oils and other	170.1		6.7	%	107.0		7.6	%
Total	$	620.0	24.6	%	$	352.0	25.0	%
Performance Brands:	$	153.3	6.1	%	$	131.4	9.3	%
Consolidated sales	$	2,521.9	100.0	%	$	1,407.3	100.0	%

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Description of the Business - Narrative (Details) - shares	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Limited Partner
Capital Unit [Line Items]
Limited Partners' Capital Account, Units Outstanding	79,150,108	78,676,262
General Partner [Member]
Capital Unit [Line Items]
General Partners' Capital Account, Units Outstanding	1,615,307
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	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Accounts Receivable, after Allowance for Credit Loss	$ 373.7	$ 216.8

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Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Sales by major source	$ 1,424.0	$ 807.0	$ 2,521.9	$ 1,407.3
Total Sales
Disaggregation of Revenue [Line Items]
Sales by major source	$ 1,424.0	$ 807.0	$ 2,521.9	$ 1,407.3

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Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Inventory Disclosure [Abstract]
Inventory method			last-in, first-out (“LIFO”)
Lower of cost or market inventory adjustment	$ 1.2	$ 17.7	$ 7.2	$ 40.4
Effect of LIFO Inventory Liquidation on Income	0.0	0.0	0.0	0.0
Excess of Replacement or Current Costs over Stated LIFO Value	186.5		186.5		$ 64.9
Effect of LIFO Inventory Liquidation on Income	$ 0.0	$ 0.0	$ 0.0	$ 0.0

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Inventories - Summary of Inventories (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Inventories
Raw materials		$ 62.9		$ 62.9		$ 60.9
Work in process		84.3		84.3		81.0
Finished goods		178.3		178.3		184.7
Total Inventories		325.5		325.5		326.6
Lower of cost or market inventory adjustment		1.2	$ 17.7	7.2	$ 40.4
Titled Inventory
Inventories
Raw materials		42.0		42.0		41.0
Work in process		60.9		60.9		52.5
Finished goods		125.0		125.0		121.1
Total Inventories		227.9		227.9		214.6
Supply&Offtake Agreements
Inventories
Raw materials	[1]	20.9		20.9		19.9
Work in process	[1]	23.4		23.4		28.5
Finished goods	[1]	53.3		53.3		63.6
Total Inventories	[1]	$ 97.6		$ 97.6		$ 112.0

[1] Amounts represent LIFO value and do not necessarily represent the value at which the inventory was sold. Please read Note 7 - “Inventory Financing Agreements” for further information.

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Leases Leases - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Finance Lease, Right-of-Use Asset, Accumulated Amortization	$ 3.8	$ 4.1
Lessee, Finance Lease, Option to Extend	no
Lease, Practical Expedients, Package [true false]	true
Lease, Practical Expedient, Use of Hindsight [true false]	false
Excess of Replacement or Current Costs over Stated LIFO Value	$ 186.5	$ 64.9
Minimum [Member]
Lessee, Finance Lease, Renewal Term	1 year
Maximum [Member]
Lessee, Finance Lease, Renewal Term	17 years
Lessee, Finance Lease, Option to Extend	33 years

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Leases Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating Lease Assets		$ 129.3	$ 157.7
Finance Lease Assets	[1]	2.9	4.2
Total Leased Asset		132.2	161.9
Current portion of operating lease liabilities		66.8	65.1
Current portion of finance leases		0.8	0.8
Long-term operating lease liabilities		63.2	93.1
Long-term finance lease liabilities		2.7	3.2
Total Lease Liability		133.5	162.2
Finance Lease, Accumulated Amortization		$ 3.8	$ 4.1

[1] Finance lease assets are recorded net of accumulated amortization of $3.8 million and $4.1 million as of June 30, 2022 and December 31, 2021, respectively.

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Leases Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Fixed operating lease cost	$ 18.8	$ 11.8	$ 37.5	$ 23.6
Short-term Operating Lease Cost	1.8	2.2	3.8	4.0
Variable Operating Lease Cost	5.3	2.7	6.0	6.4
Finance Lease Amortization of ROU Asset	0.2	0.1	0.4	0.3
Interest on lease liabilities	0.1	0.1	1.2	0.2
Total Lease Cost	$ 26.2	$ 16.9	$ 48.9	$ 34.5

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Leases Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2021	[1]	$ 71.2	$ 71.2
2022	[1]	12.5	12.5
2023	[1]	8.3	8.3
Total Operating Lease Payments	[1]	142.7	142.7
Less: Interest	[1]	12.7	12.7
Present value of operating lease liabilities	[1]	130.0	$ 130.0
Operating Lease, Lease Not yet Commenced, Description			no
2021	[2]	1.0	$ 1.0
2022	[2]	1.0	1.0
2023	[2]	0.7	0.7
Total Finance Lease Payments	[2]	4.1	4.1
Less: Interest	[2]	0.6	0.6
Present value of Finance Lease Liability	[2]	3.5	$ 3.5
Finance Lease Material Option to Extend			no
Finance Lease, Lease Not yet Commenced, Description			no
2019		37.9	$ 37.9
2021		72.2	72.2
2022		13.5	13.5
2023		9.0	9.0
Total Lease Liability, Payments due		146.8	146.8
Less: Total Interest		13.3	13.3
Present Value of Total Lease Liability		133.5	133.5	$ 162.2
Total Lease Liability		133.5	133.5	162.2
Lessee, Operating Lease, Liability, to be Paid, after Year Four		9.6	9.6
Finance Lease, Liability, to be Paid, after Year Four	[2]	0.2	0.2
Current portion of operating lease liabilities		66.8	66.8	65.1
Current portion of finance leases		0.8	0.8	0.8
Lease, Liability, current		67.6	67.6
Long-term operating lease liabilities		63.2	63.2	93.1
Long-term finance lease liabilities		2.7	2.7	$ 3.2
Lease Liability, noncurrent		$ 65.9	65.9
Lessee, Operating Lease, Option to Extend		no
2021	[1]	$ 71.2	71.2
2021	[2]	1.0	1.0
2021		72.2	72.2
2022	[1]	12.5	12.5
2022	[2]	1.0	1.0
2022		13.5	13.5
2023	[1]	8.3	8.3
2023	[2]	0.7	0.7
2023		9.0	9.0
2023	[1]	3.8	3.8
2023	[2]	0.6	0.6
Lease, Liability, Payments Due Year Five		4.4	4.4
Lease, Liability, Payments Due After Year Five		9.8	9.8
Present value of Finance Lease Liability	[2]	3.5	3.5
2019		37.9	37.9
2019	[1]	37.3	37.3
2019	[2]	0.6	0.6
Lease Arrangement, Types [Domain]
Leases [Abstract]
Present Value of Total Lease Liability		133.5	133.5
Total Lease Liability		$ 133.5	$ 133.5

[1] As of June 30, 2022, 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 June 30, 2022.

[2] As of June 30, 2022, 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 June 30, 2022.

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Leases Leases - Lease Term and Discount Rate (Details)	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	2 years 9 months 18 days	3 years 1 month 6 days
Finance Lease, Weighted Average Remaining Lease Term	4 years 3 months 18 days	4 years 9 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent	6.90%	7.00%
Finance Lease, Weighted Average Discount Rate, Percent	7.30%	7.30%

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Commitments and Contingencies - Narrative - Environmental (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
RINs Obligation	$ (392.9)	$ (278.9)
Level 2
Loss Contingencies [Line Items]
RINs Obligation	$ (392.9)	$ (278.9)

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Commitments and Contingencies Commitments and Contingencies - Narrative -Standby Letters of Credit (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Revolving Credit Facility
Loss Contingencies [Line Items]
Revolver commitments		$ 600.0
Revolving Credit Facility
Loss Contingencies [Line Items]
Outstanding standby letters of credit	$ 43.9	$ 32.7
Revolver commitments	$ 500.0
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	$ 255.0	$ 300.0

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

6 Months Ended

Jun. 30, 2022

USD ($)

bbl

Commitments and Contingencies Disclosure [Abstract]

Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block]

As of June 30, 2022, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2022	$	2.0
2023	3.9
2024	4.0
2025	4.0
2026	4.0
Thereafter	2.4
Total (1)	$	20.3

(1)As of June 30, 2022, 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

$ 20.3

^[1]

Recorded Unconditional Purchase Obligation, to be Paid, Year One

2.0

Recorded Unconditional Purchase Obligation, to be Paid, Year Two

3.9

Recorded Unconditional Purchase Obligation, to be Paid, Year Three

4.0

Recorded Unconditional Purchase Obligation, to be Paid, Year Four

4.0

Recorded Unconditional Purchase Obligation, to be Paid, Year Five

4.0

Recorded Unconditional Purchase Obligation, to be Paid, after Year Five

$ 2.4

[1] As of June 30, 2022, 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		6 Months Ended
	May 09, 2019	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2018 barrelsPerDay	Jun. 19, 2017 barrelsPerDay
Oil and Gas, Delivery Commitment [Line Items]
Interest expense		$ (42.6)	$ (36.9)	$ (94.2)	$ (71.1)
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 expense		(4.8)	$ (3.3)	$ (16.3)	$ (4.7)
Deferred payment arrangement, maximum percentage of eligible inventory				90.00%
Deferred payment arrangement, outstanding amount		27.9		$ 27.9		$ 17.0
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		$ 19.9		$ 19.9
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		Feb. 23, 2018	Jun. 30, 2022	Dec. 31, 2021
Long Term Debt Textual [Abstract]
Line of Credit Facility, Remaining Borrowing Capacity			$ 456.1
Senior Notes [Abstract]
Other			0.0	$ 0.7
Present value of Finance Lease Liability	[1]		3.5
Unamortized Debt Issuance Expense	[2]		20.6	17.8
Total long-term debt			1,450.1	1,426.2
Less current portion of long-term debt			7.5	7.4
Total long-term debt, excluding current portion			1,442.6	1,418.8
Asset financing arrangement			61.5	64.3
MRL lease financing arrangement				0.0
MRL Credit Facility			315.6	303.5
Revolving Credit Facility
Long Term Debt Textual [Abstract]
Long-term Line of Credit			$ 0.0	$ 0.0
Senior Notes [Abstract]
Weighted average interest rate			3.30%	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%	11.40%
Fixed rate			11.00%	11.00%
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments
Summary of Long-term debt
Borrowings under Notes			$ 0.0	$ 325.0
Senior Notes [Abstract]
Effective interest rate			8.30%	8.30%
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			9.50%	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			3.5	4.0
Unamortized Discount on Two Thousand One Nine and Two Thousand Two Zero Notes [Member]
Senior Notes [Abstract]
Less unamortized discounts			(1.6)	(3.5)
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
Notes due July Two Thousand Twenty Seven at Fixed Rate Eight Point Three Percentage Interest Payments
Summary of Long-term debt
Borrowings under Notes			$ 325.0	$ 0.0
Senior Notes [Abstract]
Effective interest rate			8.40%
Fixed rate			8.125%

[1] As of June 30, 2022, 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 June 30, 2022.

[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 $20.6 million and $22.5 million at June 30, 2022 and December 31, 2021, respectively.

XML

Long-Term Debt - Narrative (Details) - USD ($) $ in Millions				6 Months Ended
		Jan. 20, 2022	Feb. 23, 2018	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Long-Term Debt (Textual) [Abstract]
Accumulated Amortization, Deferred Finance Costs				$ 20.6		$ 22.5
(Gain) loss on debt extinguishment				1.0
Repayments of borrowings — senior notes				$ 325.0	$ 70.0
Gain (Loss) on Extinguishment of Debt [Abstract]
Debt Instrument, Covenant Compliance				in compliance with all covenants under the indentures governing the Senior Notes
Line of Credit Facility, Remaining Borrowing Capacity				$ 456.1
Total long-term debt, excluding current portion				1,442.6		1,418.8
Debt and Lease Obligation				1,450.1		1,426.2
Unamortized Debt Issuance Expense	[1]			(20.6)		(17.8)
Present value of Finance Lease Liability	[2]			3.5
Other				0.0		0.7
MRL lease financing arrangement						0.0
Line of Credit Amendment		Jan. 20, 2022
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent				$ 0.0		$ 325.0
Effective interest rate				8.30%		8.30%
Fixed rate				7.75%
Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Maturity date			Feb. 23, 2023
Senior secured revolving credit facility				$ 500.0
Outstanding standby letters of credit				$ 43.9		$ 32.7
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, 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				$ 500.0
Gain (Loss) on Extinguishment of Debt [Abstract]
Long-term Line of Credit				$ 0.0		$ 0.0
Weighted average interest rate				3.30%		2.40%
Revolving Credit Facility | Maximum
Long-Term Debt (Textual) [Abstract]
Letter of Credit Sublimit				90.00%		90.00%
Notes due July Two Thousand Twenty Seven at Fixed Rate Eight Point Three Percentage Interest Payments
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent				$ 325.0		$ 0.0
Effective interest rate				8.40%
Fixed rate				8.125%
Gain (Loss) on Extinguishment of Debt [Abstract]
Debt Instrument, Issuance Date		Jan. 20, 2022
Long-Term Debt, Gross		$ 325.0
Proceeds from Debt, Net of Issuance Costs		$ 319.1
Unamortized Discount on Two Thousand One Nine and Two Thousand Two Zero Notes [Member]
Gain (Loss) on Extinguishment of Debt [Abstract]
Debt Instrument, Unamortized Discount				$ (1.6)		(3.5)
Capital Lease Obligations
Gain (Loss) on Extinguishment of Debt [Abstract]
Present value of Finance Lease Liability				3.5		4.0
Notes Due January Two Thousand Twenty One at Fixed Rated Eleven Point Five Percentage Interest Payments [Member]
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent				$ 550.0		$ 550.0
Notes due April twenty twenty-five at Eleven percent interest payments [Member]
Long-Term Debt (Textual) [Abstract]
Effective interest rate				11.40%		11.40%
Fixed rate				11.00%		11.00%
Notes Due July Two Thousand Twenty Four at Fixed Rate of Nine Point Two Five Percentage Interest Payments [Domain]
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent				$ 200.0		$ 200.0
Notes Due April Two Thousand Two Four at Fixed Rate of Nine Point Two Five Percentage Interest Payments
Long-Term Debt (Textual) [Abstract]
Effective interest rate				9.50%		9.40%
Fixed rate				9.25%		9.25%
MRL Credit Facility
Long-Term Debt (Textual) [Abstract]
Effective interest rate				12.50%		12.50%
MRL Asset #1
Gain (Loss) on Extinguishment of Debt [Abstract]
MRL lease financing arrangement				$ 16.7

[1] 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 $20.6 million and $22.5 million at June 30, 2022 and December 31, 2021, respectively.

[2] As of June 30, 2022, 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 June 30, 2022.

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	Jun. 30, 2022
Maturities of long-term debt
2021		$ 3.8
2022		8.1
2023		524.5
2024		559.3
Long-term Debt		1,472.3
Debt Instrument [Line Items]
Long-Term Debt, Maturity, after Year Four		366.6
Debt Instrument, Repurchased Face Amount		325.0
2021		3.8
2021		8.1
Long-Term Debt, Maturity, Year Three		524.5
Long-Term Debt, Maturity, Year Four		559.3
Long-Term Debt, Maturity, Year Five		$ 10.0
Revolving Credit Facility
Debt Instrument [Line Items]
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	Jun. 30, 2022	Dec. 31, 2021
Offsetting Assets [Line Items]
Gross Amounts of Recognized Liabilities	$ (116.3)	$ (27.9)
Derivative Liability, Fair Value, Gross Asset	12.8	0.0
Derivative Liability	(103.5)	(27.9)
Inventory Financing Obligations | Not Designated as Hedging Instrument [Member] | Specialty Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Liabilities	(43.0)	(17.4)
Derivative Liability, Fair Value, Gross Asset	0.0	0.0
Derivative Liability	(43.0)	(17.4)
Inventory Financing Obligations | Not Designated as Hedging Instrument [Member] | Montana/Renewables
Offsetting Assets [Line Items]
Gross Amounts of Recognized Liabilities	(15.0)	(10.5)
Derivative Liability, Fair Value, Gross Asset	0.0	0.0
Derivative Liability	(15.0)	(10.5)
Fair Value, Measurements, Recurring
Offsetting Assets [Line Items]
Derivative Liability	(103.5)	(27.9)
Fair Value, Measurements, Recurring | Inventory Financing Obligations
Offsetting Assets [Line Items]
Derivative Liability	(58.0)	(27.9)
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Offsetting Assets [Line Items]
Derivative Liability	(103.5)	(27.9)
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Inventory Financing Obligations
Offsetting Assets [Line Items]
Derivative Liability	(58.0)	27.9
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Offsetting Assets [Line Items]
Derivative Liability	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Inventory Financing Obligations
Offsetting Assets [Line Items]
Derivative Liability	0.0	0.0
Fair Value, Measurements, Recurring | Level 2
Offsetting Assets [Line Items]
Derivative Liability	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | Inventory Financing Obligations
Offsetting Assets [Line Items]
Derivative Liability	$ 0.0	$ 0.0

XML

Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ (116.3)	$ (27.9)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(103.5)	(27.9)
Derivative Liability, Fair Value, Gross Asset	12.8	0.0
Inventory Financing Obligations | Specialty Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(43.0)	(17.4)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(43.0)	(17.4)
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	(15.0)	(10.5)
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(15.0)	(10.5)
Derivative Liability, Fair Value, Gross Asset	0.0	0.0
crack spread swaps | Specialty Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(58.3)	0.0
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	(45.5)	0.0
Derivative Liability, Fair Value, Gross Asset	$ 12.8	$ 0.0

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Derivatives - Schedule of Derivative Instruments (Not Designated as Hedges) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (14.1)	$ 0.0	$ (14.1)	$ 1.1
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(53.5)	(6.9)	(75.6)	(13.2)
crack spread swaps | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(13.3)	0.0	(13.3)	0.0
crack spread swaps | Specialty Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(42.9)	0.0	(45.5)	0.0
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	1.1
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	1.3
crude oil swaps | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(0.8)	0.0	(0.8)	0.0
crude oil swaps | Specialty Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.3	0.0	0.0	0.0
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)	(10.9)	(6.5)	(25.6)	(11.7)
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)	$ 0.0	$ (0.4)	$ (4.5)	$ (2.8)

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Derivatives Derivatives - Schedule of Derivative Positions (Diesel Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (14.1)	$ 0.0	$ (14.1)	$ 1.1
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (53.5)	$ (6.9)	$ (75.6)	$ (13.2)

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Derivatives Derivatives - Schedule of Derivative Positions (Gasoline Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (53.5)	$ (6.9)	$ (75.6)	$ (13.2)
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (14.1)	$ 0.0	(14.1)	1.1
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	1.3
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	$ 1.1

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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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Unrealized Gain (Loss)
Derivative [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (53.5)	$ (6.9)	$ (75.6)	$ (13.2)
Realized Gain (Loss)
Derivative [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (14.1)	$ 0.0	$ (14.1)	$ 1.1

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Derivatives Derivatives - Schedule of positions (Diesel - MEH Crack Spread Swaps) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) bbl	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gain (loss) on derivative instruments	$ (53.5)	$ (6.9)	$ (75.6)	$ (13.2)
Not Designated as Hedging Instrument [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(53.5)	(6.9)	(75.6)	(13.2)
Not Designated as Hedging Instrument [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (14.1)	$ 0.0	(14.1)	$ 1.1
crack spread swaps
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Volume | bbl	1,656,000
Unrealized gain (loss) on derivative instruments	$ 7.3		$ 7.3
crack spread swaps 2023 maturity
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Nonmonetary Notional Amount, Volume | bbl	3,650,000

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Fair Value Measurements - Summary of Recurring Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Derivative liabilities:
Total derivative liabilities	$ 103.5	$ 27.9
Fair Value, Measurements, Recurring
Assets:
Pension plan investments	28.8	34.5
Assets, Fair Value Disclosure	28.8	34.5
Derivative liabilities:
Total derivative liabilities	103.5	27.9
RINs Obligation	(392.9)	(278.9)
Precious metals lease	(6.4)	(6.8)
Liability Awards	(27.8)	(63.1)
Total recurring liabilities at fair value	(530.6)	(376.7)
Fair Value, Measurements, Recurring | Level 1
Assets:
Pension plan investments	28.8	34.5
Assets, Fair Value Disclosure	28.8	34.5
Derivative liabilities:
Total derivative liabilities	0.0	0.0
RINs Obligation	0.0	0.0
Precious metals lease	(6.4)	(6.8)
Liability Awards	(27.8)	(63.1)
Total recurring liabilities at fair value	(34.2)	(69.9)
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	(392.9)	(278.9)
Precious metals lease	0.0	0.0
Liability Awards	0.0	0.0
Total recurring liabilities at fair value	(392.9)	(278.9)
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	103.5	27.9
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	(103.5)	(27.9)
Inventory Financing Obligations | Fair Value, Measurements, Recurring
Derivative liabilities:
Total derivative liabilities	58.0	27.9
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	$ 58.0	$ (27.9)

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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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Realized (gain) loss on derivative instruments	$ (67.6)	$ (6.9)	$ (89.7)	$ (12.1)
Unrealized gain (loss) on derivative instruments	(53.5)	(6.9)	(75.6)	(13.2)
Total derivative liabilities	103.5		103.5		$ 27.9
Fair Value, Measurements, Recurring
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Total derivative liabilities	103.5		103.5		27.9
Precious metals lease	6.4		6.4		6.8
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	58.0		58.0		27.9
crack spread swaps
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Unrealized gain (loss) on derivative instruments	7.3		7.3
crack spread 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	(45.5)		(45.5)		0.0
Level 3
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Fair value at January 1,			(27.9)	(3.5)
Realized (gain) loss on derivative instruments			(14.1)	1.1
Unrealized gain (loss) on derivative instruments			(75.6)	(13.2)
Settlements			(14.1)	(1.1)
Fair value at June 30,	(103.5)	$ (16.7)	(103.5)	$ (16.7)
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	103.5		103.5		27.9
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	58.0		58.0		(27.9)
Level 3 | crack spread 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	(45.5)		(45.5)		0.0
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	6.4		6.4		6.8
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] | crack spread 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 | crack spread 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

XML

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	Jun. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Asset financing arrangement	$ 61.5	$ 64.3
MRL lease financing arrangement		0.0
MRL Credit Facility	315.6	303.5
Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Asset financing arrangement	61.5	64.3
MRL lease financing arrangement	16.7	0.0
Finance lease and other obligations	3.5	4.7
MRL Credit Facility	315.6	303.5
Fair Value, Inputs, Level 3 | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Asset financing arrangement	60.3	63.0
MRL lease financing arrangement	16.7	0.0
Finance lease and other obligations	3.5	4.7
MRL Credit Facility	308.9	296.2
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	0.0	325.6
Fair Value, Inputs, Level 1 [Member] | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	0.0	322.3
Level 2 | Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	1,006.2	815.3
Level 2 | Carrying value [Member]
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Senior notes	1,064.2	742.0
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	0.0	0.0
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	$ (3.5)	$ (2.0)

XML

Earnings Per Unit - Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
General partner’s interest in net loss	$ (300,000)	$ (1,600,000)	$ (2,200,000)	$ (4,500,000)
Net income (loss) available to limited partners	$ (15,000,000.0)	$ (76,800,000)	$ (108,600,000)	$ (220,000,000.0)
Weighted Average Limited Partnership Units Outstanding, Diluted	79,424,383	78,929,561	79,241,515	78,782,802
Weighted Average Number of Shares Outstanding, Basic	79,424,383	78,929,561	79,241,515	78,782,802
Net loss	$ (15,300,000)	$ (78,400,000)	$ (110,800,000)	$ (224,500,000)
Limited partners' interest basic and diluted net loss per unit	(0.19)	(0.97)	(1.37)	(2.79)
Continuing Operations
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
General partner’s interest in net loss	$ (300,000)	$ (1,600,000)	$ (2,200,000)	$ (4,500,000)

XML

Segments and Related Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Sales	$ 1,424.0	$ 807.0	$ 2,521.9	$ 1,407.3
Adjusted EBITDA	(175.8)	(32.3)	(199.1)	(26.9)
Reconciling items to net loss:
Depreciation and amortization	30.3	29.5	60.5	60.4
Effect of LIFO liquidation and Inventory write-down	(1.2)	(17.7)	(7.2)	(40.4)
Loss on impairment and disposal of assets		1.2		1.9
Unrealized (gain) loss on derivatives	53.5	6.9	75.6	13.2
RINs mark-to-market	68.7	48.2	78.1	123.2
Other Nonrecurring (Income) Expense		0.7	3.8	3.2
Interest expense	42.6	36.9	94.2	71.1
(Gain) loss on debt extinguishment			(1.0)
Equity-based compensation and other items	(3.4)	4.1	3.6	17.7
Income tax expense from continuing operations	0.6	0.9	1.3	1.1
Net loss	(15.3)	(78.4)	(110.8)	(224.5)
Payments to Acquire Productive Assets	119.3	35.3	196.3	49.0
Property, Plant and Equipment, Net	1,149.7	889.9	1,149.7	889.9	$ 949.7
External Customers [Member]
Segment Reporting Information [Line Items]
Sales	1,424.0	807.0	2,521.9	1,407.3
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	19.2	25.9	30.3	36.7
Property, Plant and Equipment, Net	373.8	390.0	373.8	390.0
Fuel Product [Member]
Reconciling items to net loss:
Payments to Acquire Productive Assets	0.3	0.5	0.9	1.0
Property, Plant and Equipment, Net	34.1	33.5	34.1	33.5
Corporate Segment [Member]
Reconciling items to net loss:
Payments to Acquire Productive Assets	0.0	0.0	0.1	0.0
Property, Plant and Equipment, Net	4.8	12.5	4.8	12.5
Montana/Renewables
Reconciling items to net loss:
Payments to Acquire Productive Assets	99.8	8.9	165.0	11.3
Property, Plant and Equipment, Net	737.0	453.9	737.0	453.9
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		(4.6)	(12.6)	(8.1)
Operating Segments [Member] | Specialty Product [Member]
Segment Reporting Information [Line Items]
Sales	986.2	548.4	1,761.2	932.0
Adjusted EBITDA	(123.5)	(31.8)	(151.6)	(29.6)
Reconciling items to net loss:
Depreciation and amortization	16.1	15.7	32.0	32.6
Effect of LIFO liquidation and Inventory write-down	0.0	(11.3)	(3.4)	(28.9)
Loss on impairment and disposal of assets		1.1		1.8
Unrealized (gain) loss on derivatives	53.5	(6.5)	(71.1)	(11.7)
RINs mark-to-market	44.7	29.9	50.8	81.6
Interest expense	5.9	4.4	16.8	6.7
Operating Segments [Member] | Specialty Product [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	979.2	543.8	1,748.6	923.9
Operating Segments [Member] | Specialty Product [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	7.0	4.6	12.6	8.1
Operating Segments [Member] | Fuel Product [Member]
Segment Reporting Information [Line Items]
Sales	80.1	65.2	153.3	131.4
Adjusted EBITDA	(3.7)	(7.3)	(9.0)	(23.3)
Reconciling items to net loss:
Depreciation and amortization	2.8	3.4	5.6	6.8
Effect of LIFO liquidation and Inventory write-down	(0.2)	(0.5)	(0.2)	(0.5)
Loss on impairment and disposal of assets		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	1.1	0.1
Operating Segments [Member] | Fuel Product [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	80.1	65.2	153.3	131.4
Operating Segments [Member] | Fuel Product [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Operating Segments [Member] | Corporate Segment [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Adjusted EBITDA	(20.0)	19.6	39.1	36.8
Reconciling items to net loss:
Depreciation and amortization	1.9	2.0	3.9	4.0
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
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	28.0	31.1	57.5	62.7
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	364.7	198.0	620.0	352.0
Adjusted EBITDA	(68.6)	(12.8)	(77.6)	(10.8)
Reconciling items to net loss:
Depreciation and amortization	9.5	8.4	19.0	17.0
Effect of LIFO liquidation and Inventory write-down	(1.0)	(5.9)	(3.6)	(11.0)
Loss on impairment and disposal of assets		0.1		0.1
Unrealized (gain) loss on derivatives	0.0	(0.4)	(4.5)	(1.5)
RINs mark-to-market	24.0	18.3	27.3	41.6
Interest expense	8.7	1.4	18.8	1.6
Operating Segments [Member] | Montana/Renewables | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	364.7	198.0	620.0	352.0
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	(7.0)
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
Loss on impairment and disposal of assets		0.0	0.0	0.0
Unrealized (gain) loss on derivatives	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
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	(7.0)	(4.6)	(12.6)	(8.1)
Oil and Gas, Refining and Marketing [Member]
Segment Reporting Information [Line Items]
Sales	$ 1,424.0	$ 807.0	$ 2,521.9	$ 1,407.3

XML

Segments and Related Information - Schedule of Major Product Category Sales (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Major product category sales
Sales	$ 1,424.0	$ 807.0	$ 2,521.9	$ 1,407.3
Adjusted EBITDA	175.8	32.3	199.1	26.9
Depreciation and amortization	30.3	29.5	60.5	60.4
Effect of LIFO liquidation and Inventory write-down	(1.2)	(17.7)	(7.2)	(40.4)
Interest expense	42.6	36.9	94.2	71.1
Unrealized (gain) loss on derivatives	53.5	6.9	75.6	13.2
Other Nonrecurring (Income) Expense		0.7	3.8	3.2
Non-cash equity based compensation	(3.4)	4.1	3.6	17.7
Income tax expense from continuing operations	0.6	0.9	1.3	1.1
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	$ (15.3)	$ (78.4)	(110.8)	$ (224.5)
(Gain) loss on debt extinguishment			$ 1.0
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	$ 979.2	$ 543.8	$ 1,748.6	$ 923.9
Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	68.80%	67.40%	69.30%	65.70%
Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 80.1	$ 65.2	$ 153.3	$ 131.4
Product Concentration Risk [Member] | Fuel Product [Member] | Sales
Major product category sales
Sales, percentage	5.60%	8.10%	6.10%	9.30%
Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 364.7	$ 198.0	$ 620.0	$ 352.0
Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	25.60%	24.50%	24.60%	25.00%
Lubricating Oils [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 245.3	$ 158.8	$ 454.8	$ 290.2
Lubricating Oils [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	17.20%	19.70%	18.00%	20.60%
Solvents [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 120.6	$ 75.6	$ 212.6	$ 141.3
Solvents [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	8.50%	9.40%	8.50%	10.00%
Waxes [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 49.8	$ 36.8	$ 94.3	$ 69.5
Waxes [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	3.50%	4.50%	3.70%	5.00%
Other [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 563.5	$ 272.6	$ 986.9	$ 422.9
Other [Member] | Product Concentration Risk [Member] | Specialty Product [Member] | Sales
Major product category sales
Sales, percentage	39.60%	33.80%	39.10%	30.10%
Gasoline [Member] | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 67.8	$ 40.7	$ 126.4	$ 83.5
Gasoline [Member] | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	4.80%	5.00%	5.00%	5.90%
Diesel [Member] | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 180.8	$ 84.1	$ 297.3	$ 149.1
Diesel [Member] | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	12.70%	10.40%	11.90%	10.60%
Jet fuel [Member] | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 14.8	$ 7.4	$ 26.2	$ 12.4
Jet fuel [Member] | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	1.00%	0.90%	1.00%	0.90%
Oil and Gas, Refining and Marketing [Member]
Major product category sales
Sales	$ 1,424.0	$ 807.0	$ 2,521.9	$ 1,407.3
Oil and Gas, Refining and Marketing [Member] | Product Concentration Risk [Member]
Major product category sales
Sales	1,424.0	807.0	2,521.9	1,407.3
asphalt, heavy fuel oils and other | Product Concentration Risk [Member] | Montana/Renewables
Major product category sales
Sales	$ 101.3	$ 65.8	$ 170.1	$ 107.0
asphalt, heavy fuel oils and other | Product Concentration Risk [Member] | Montana/Renewables | Sales
Major product category sales
Sales, percentage	7.10%	8.20%	6.70%	7.60%
Operating Segments [Member]
Major product category sales
Sales		$ (4.6)	$ (12.6)	$ (8.1)
Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 986.2	548.4	1,761.2	932.0
Adjusted EBITDA	123.5	31.8	151.6	29.6
Depreciation and amortization	16.1	15.7	32.0	32.6
Effect of LIFO liquidation and Inventory write-down	0.0	(11.3)	(3.4)	(28.9)
Interest expense	5.9	4.4	16.8	6.7
Unrealized (gain) loss on derivatives	53.5	(6.5)	(71.1)	(11.7)
Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	80.1	65.2	153.3	131.4
Adjusted EBITDA	3.7	7.3	9.0	23.3
Depreciation and amortization	2.8	3.4	5.6	6.8
Effect of LIFO liquidation and Inventory write-down	(0.2)	(0.5)	(0.2)	(0.5)
Interest expense	0.0	0.0	1.1	0.1
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
Operating Segments [Member] | Corporate Segment [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Adjusted EBITDA	20.0	(19.6)	(39.1)	(36.8)
Depreciation and amortization	1.9	2.0	3.9	4.0
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Interest expense	28.0	31.1	57.5	62.7
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
Operating Segments [Member] | Montana/Renewables
Major product category sales
Sales	364.7	198.0	620.0	352.0
Adjusted EBITDA	68.6	12.8	77.6	10.8
Depreciation and amortization	9.5	8.4	19.0	17.0
Effect of LIFO liquidation and Inventory write-down	(1.0)	(5.9)	(3.6)	(11.0)
Interest expense	8.7	1.4	18.8	1.6
Unrealized (gain) loss on derivatives	0.0	(0.4)	(4.5)	(1.5)
Eliminations [Member]
Major product category sales
Sales	(7.0)
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
Interest expense	0.0	0.0	0.0	0.0
Unrealized (gain) loss on derivatives	0.0	0.0
External Customers [Member]
Major product category sales
Sales	1,424.0	807.0	2,521.9	1,407.3
External Customers [Member] | Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	979.2	543.8	1,748.6	923.9
External Customers [Member] | Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	80.1	65.2	153.3	131.4
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	364.7	198.0	620.0	352.0
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	7.0	4.6	12.6	8.1
Eliminations [Member] | Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
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	$ (7.0)	$ (4.6)	$ (12.6)	$ (8.1)

XML

Segments and Related Information - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Segment Reporting Information [Line Items]
Number of customers representing 10% or greater of consolidated sales	no	no	no	no
number of major suppliers	2	2
Disclosure on Geographic Areas, Description of Revenue from External Customers	ten percent	ten percent	ten percent	ten percent
Adjusted EBITDA	$ 175.8	$ 32.3	$ 199.1	$ 26.9
Depreciation and amortization	30.3	29.5	60.5	60.4
Effect of LIFO liquidation and Inventory write-down	(1.2)	(17.7)	(7.2)	(40.4)
Interest expense	42.6	36.9	94.2	71.1
Unrealized (gain) loss on derivatives	53.5	6.9	75.6	13.2
RINs mark-to-market	68.7	48.2	78.1	123.2
Other Nonrecurring (Income) Expense		0.7	3.8	3.2
Equity-based compensation and other items	(3.4)	4.1	3.6	17.7
Income tax expense from continuing operations	0.6	0.9	1.3	1.1
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	(15.3)	(78.4)	(110.8)	(224.5)
Sales	1,424.0	807.0	2,521.9	1,407.3
Property, Plant and Equipment, Net	1,149.7	889.9	1,149.7	889.9	$ 949.7
Payments to Acquire Productive Assets	119.3	35.3	196.3	49.0
Gain on Business Interruption Insurance Recovery	13.9		13.9
property damage insurance proceeds	4.4		4.4
External Customers [Member]
Segment Reporting Information [Line Items]
Sales	1,424.0	807.0	2,521.9	1,407.3
Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales		(4.6)	(12.6)	(8.1)
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
Interest expense	0.0	0.0	0.0	0.0
Unrealized (gain) loss on derivatives	0.0	0.0
RINs mark-to-market	0.0	0.0	0.0	0.0
Sales	(7.0)
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	4.8	12.5	4.8	12.5
Payments to Acquire Productive Assets	0.0	0.0	0.1	0.0
Corporate Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	20.0	(19.6)	(39.1)	(36.8)
Depreciation and amortization	1.9	2.0	3.9	4.0
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Interest expense	28.0	31.1	57.5	62.7
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	737.0	453.9	737.0	453.9
Payments to Acquire Productive Assets	99.8	8.9	165.0	11.3
Montana/Renewables | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	68.6	12.8	77.6	10.8
Depreciation and amortization	9.5	8.4	19.0	17.0
Effect of LIFO liquidation and Inventory write-down	(1.0)	(5.9)	(3.6)	(11.0)
Interest expense	8.7	1.4	18.8	1.6
Unrealized (gain) loss on derivatives	0.0	(0.4)	(4.5)	(1.5)
RINs mark-to-market	24.0	18.3	27.3	41.6
Sales	364.7	198.0	620.0	352.0
Montana/Renewables | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	364.7	198.0	620.0	352.0
Specialty Product [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	373.8	390.0	373.8	390.0
Payments to Acquire Productive Assets	19.2	25.9	30.3	36.7
Specialty Product [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	123.5	31.8	151.6	29.6
Depreciation and amortization	16.1	15.7	32.0	32.6
Effect of LIFO liquidation and Inventory write-down	0.0	(11.3)	(3.4)	(28.9)
Interest expense	5.9	4.4	16.8	6.7
Unrealized (gain) loss on derivatives	53.5	(6.5)	(71.1)	(11.7)
RINs mark-to-market	44.7	29.9	50.8	81.6
Sales	986.2	548.4	1,761.2	932.0
Specialty Product [Member] | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	979.2	543.8	1,748.6	923.9
Fuel Product [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	34.1	33.5	34.1	33.5
Payments to Acquire Productive Assets	0.3	0.5	0.9	1.0
Fuel Product [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	3.7	7.3	9.0	23.3
Depreciation and amortization	2.8	3.4	5.6	6.8
Effect of LIFO liquidation and Inventory write-down	(0.2)	(0.5)	(0.2)	(0.5)
Interest expense	0.0	0.0	1.1	0.1
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	80.1	65.2	153.3	131.4
Fuel Product [Member] | Operating Segments [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	80.1	65.2	153.3	131.4
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	85.80%	88.60%	85.10%	87.50%

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Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Asset financing arrangement	$ 61.5			$ 61.5		$ 64.3
Property, Plant and Equipment, Net	1,149.7		$ 889.9	1,149.7	$ 889.9	949.7
Long-term Debt	1,472.3			1,472.3
Partners' Capital	(477.6)	$ (463.8)	(351.7)	(477.6)	(351.7)	(385.1)	$ (273.5)	$ (128.6)
Cash and cash equivalents	27.5			27.5		38.1
Interest expense	42.6		$ 36.9	94.2	$ 71.1
Parent Company
Schedule of Equity Method Investments [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current						216.8
Accounts receivable - Intercompany	0.0			0.0		0.0
Property, Plant and Equipment, Net	712.0			712.0		698.4
Restricted Cash						0.0
Accounts Payable	374.3			374.3
Accounts payable - Intercompany						0.0
Deferred revenue - Intercompany	0.0			0.0
Long-term Debt	1,117.0			1,117.0		1,122.6
Partners' Capital	(473.1)			(473.1)		(379.7)
Partners’ capital (deficit) - Intercompany	0.0	0.0
Cash and cash equivalents	14.0			14.0
Unrestricted Subsidiaries
Schedule of Equity Method Investments [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current						0.0
Accounts receivable - Intercompany	23.4			23.4		6.9
Property, Plant and Equipment, Net	537.4			537.4		390.3
Restricted Cash						83.8
Accounts Payable	99.2			99.2
Accounts payable - Intercompany						43.1
Deferred revenue - Intercompany	20.3			20.3
Long-term Debt	325.6			325.6		296.2
Partners' Capital	(4.5)			(4.5)		(5.4)
Partners’ capital (deficit) - Intercompany	133.7	146.7
Cash and cash equivalents	13.5			13.5
Revenues	28.9			43.2
Operating Costs and Expenses	7.0			13.9
Depreciation	3.8			7.5
Interest expense	11.2			22.3
Eliminations
Schedule of Equity Method Investments [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current						0.0
Accounts receivable - Intercompany	(23.4)			(23.4)		(6.9)
Property, Plant and Equipment, Net	(99.7)			(99.7)		(139.0)
Restricted Cash						0.0
Accounts Payable	0.0			0.0
Accounts payable - Intercompany						(43.1)
Deferred revenue - Intercompany	(20.3)			(20.3)
Long-term Debt	0.0			0.0		0.0
Partners' Capital	0.0			0.0		0.0
Partners’ capital (deficit) - Intercompany	(133.7)	(146.7)
Cash and cash equivalents	0.0			0.0
Consolidated Total
Schedule of Equity Method Investments [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current						216.8
Accounts receivable - Intercompany	0.0			0.0		0.0
Property, Plant and Equipment, Net	1,149.7			1,149.7		949.7
Restricted Cash						83.8
Accounts Payable	473.5			473.5
Accounts payable - Intercompany						0.0
Deferred revenue - Intercompany	0.0			0.0
Long-term Debt	1,442.6			1,442.6		1,418.8
Partners' Capital	(477.6)			(477.6)		(385.1)
Partners’ capital (deficit) - Intercompany	0.0	$ 0.0
Cash and cash equivalents	27.5			27.5
Fair Value, Inputs, Level 3 | Estimate of Fair Value Measurement [Member]
Schedule of Equity Method Investments [Line Items]
Asset financing arrangement	$ 61.5			$ 61.5		$ 64.3

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Subsequent Events (Details) - USD ($) $ in Millions	Jul. 31, 2022	Aug. 05, 2022	Dec. 31, 2021
Subsequent Event [Line Items]
MRL lease financing arrangement			$ 0.0
Subsequent Event [Member]
Subsequent Event [Line Items]
Fair Value of Derivative Measurement Date	Jul. 31, 2022
Increase (Decrease) in Derivative Assets and Liabilities	$ 18.0
MRL Preferred Equity		$ 250.0
MRL Asset #2 | Subsequent Event [Member]
Subsequent Event [Line Items]
MRL lease financing arrangement		250.0
MRL Asset #3 | Subsequent Event [Member]
Subsequent Event [Line Items]
MRL lease financing arrangement		$ 100.0

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Label	Element	Value
Proceeds from Issuance of Senior Long-Term Debt	us-gaap_ProceedsFromIssuanceOfSeniorLongTermDebt	$ 0
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	121,900,000
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents	us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	$ 109,400,000