Calumet Slashes SAF Expansion Cost to $137M, Amends DOE Loan
CLMT has more than doubled off its 52-week low of $15.995.
Summary
Calumet's Montana Renewables unit is overhauling its sustainable aviation fuel expansion, cutting the remaining capital requirement to $137 million from a $1.2 billion original plan. The new approach repurposes existing refining equipment to reach 200 million gallons of SAF annually and 17,000 barrels per day of total product sales by end of 2028. The project is split into six smaller phases to reduce construction risk and improve returns. The DOE loan guarantee agreement was amended, reducing remaining availability to a single $34 million draw from up to $658 million. This follows strong Q2 results with $175.2 million adjusted EBITDA and debt retirement. The lower capital intensity and simplified structure could improve free cash flow and strategic flexibility, though execution across six projects remains a key risk.
At the time of this announcement, CLMT was trading at $50.84 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $16.00 to $51.50. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.