Unrestricted Subsidiaries

12 Months Ended

Dec. 31, 2024

Unrestricted Subsidiaries

Unrestricted Subsidiaries

19. 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 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.

For the years ended December 31, 2024 and December 31, 2023, 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 table sets 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 December 31, 2024 and December 31, 2023, respectively.

	Parent
	Company and
	Restricted		Unrestricted				Consolidated
December 31, 2024	Subsidiaries		Subsidiaries		Eliminations		Total
Cash and cash equivalents	$	8.9	$	29.2	$	—	$	38.1
Accounts receivable - trade	$	219.2	$	22.5	$	—	$	241.7
Accounts receivable - other	$	24.5	$	11.9	$	—	$	36.4
Inventory	$	379.9	$	36.4	$	—	$	416.3
Prepaid expenses and other current assets	$	20.5	$	13.0	$	—	$	33.5
Property, plant and equipment, net	$	688.5	$	750.3	$	—	$	1,438.8
Operating lease right-of-use assets	$	236.6	$	3.6	$	—	$	240.2
Other noncurrent assets, net	$	107.8	$	10.4	$	—	$	118.2
Accounts payable	$	279.5	$	484.3	$	(443.0)	$	320.8
Accrued interest payable	$	44.4	$	1.0	$	—	$	45.4
Other taxes payable	$	10.0	$	1.9	$	—	$	11.9
Obligations under inventory financing agreements	$	—	$	32.0	$	—	$	32.0
Current portion of operating lease liabilities	$	56.0	$	2.8	$	—	$	58.8
Current portion of long-term debt	$	16.4	$	19.1	$	—	$	35.5
Long-term operating lease liabilities	$	181.4	$	0.8	$	—	$	182.2
Long-term debt, less current portion	$	1,646.7	$	516.0	$	(98.0)	$	2,064.7
Redeemable noncontrolling interest	$	—	$	245.6	$	—	$	245.6
Stockholders' equity	$	(241.2)	$	(426.2)	$	(44.5)	$	(711.9)

	Parent
	Company and
	Restricted		Unrestricted				Consolidated
December 31, 2023	Subsidiaries		Subsidiaries		Eliminations		Total
Cash and cash equivalents	$	7.3	$	0.6	$	—	$	7.9
Accounts receivable - trade	$	230.7	$	21.7	$	—	$	252.4
Accounts receivable - other	$	24.8	$	9.0	$	—	$	33.8
Inventory	$	353.1	$	86.3	$	—	$	439.4
Prepaid expenses and other current assets	$	14.6	$	37.0	$	—	$	51.6
Property, plant and equipment, net	$	731.7	$	774.6	$	—	$	1,506.3
Operating lease right-of-use assets	$	108.1	$	6.3	$	—	$	114.4
Other noncurrent assets, net	$	127.3	$	7.1	$	—	$	134.4
Accounts payable	$	282.4	$	333.3	$	(293.7)	$	322.0
Accrued interest payable	$	47.8	$	0.9	$	—	$	48.7
Other taxes payable	$	11.9	$	1.6	$	—	$	13.5
Obligations under inventory financing agreements	$	126.0	$	64.4	$	—	$	190.4
Other current liabilities	$	20.4	$	22.0	$	—	$	42.4
Current portion of operating lease liabilities	$	72.2	$	3.4	$	—	$	75.6
Current portion of long-term debt	$	38.8	$	16.9	$	—	$	55.7
Long-term operating lease liabilities	$	36.0	$	3.0	$	—	$	39.0
Long-term debt	$	1,381.0	$	548.7	$	(100.0)	$	1,829.7
Redeemable noncontrolling interest	$	—	$	245.6	$	—	$	245.6
Partners' capital (deficit)	$	(174.3)	$	(297.2)	$	(18.8)	$	(490.3)

The following table sets forth certain financial information of the Company’s unrestricted subsidiaries, on a combined basis, as of December 31, 2024, 2023 and 2022, respectively.

	Year Ended December 31,
	2024		2023		2022
	(In millions)
Sales	$	631.7	$	513.2	$	65.9
Cost of sales		661.1		651.0		77.8
Gross profit (loss)		(29.4)		(137.8)		(11.9)
Operating costs and expenses:
General and administrative		29.2		22.1		2.0
Taxes other than income taxes		5.9		4.3		—
Loss on impairment and disposal of assets		1.1		3.4		—
Operating loss		(65.6)		(167.6)		(13.9)
Other income (expense):
Interest expense		(99.8)		(77.8)		(32.8)
Debt extinguishment costs		—		—		(38.3)
Gain on derivative instruments		10.0		5.3		11.3
Other income		0.8		1.1		0.4
Total other expense		(89.0)		(71.4)		(59.4)
Net loss	$	(154.6)	$	(239.0)	$	(73.3)