1. Calumet received exemptions from the EPA for RIN obligations. 2. RIN liabilities dropped from 396 million to 89 million. 3. CEO praises EPA for addressing historical backlog in RINs. 4. Decision enhances clarity for the renewable fuels market. 5. Calumet positions itself closer to energy independence goals.
The reduction of RIN liabilities significantly improves Calumet's financial position. Historical data shows similar EPA rulings positively affected stock prices of firms reliant on RINs.
Significant regulatory change directly affects Calumet’s operations and market positioning, indicating high relevance. Improved RIN obligations also enhance Calumet's competitiveness in the renewable fuels sector.
The decision provides lasting clarity, reducing financial burdens for several upcoming years. Past experiences show that strategic regulatory changes often support long-term investment and growth.
INDIANAPOLIS, Aug. 26, 2025 /PRNewswire/ -- Calumet, Inc. (NASDAQ:CLMT) ("Calumet, ""we," "our" or "us") provided an update regarding the recent U.S. Environmental Protection Agency (EPA) decision on small refinery exemptions and the expected impact on our Renewable Identification Number ("RINs") balance sheet accrual.
On Friday, August 22, the EPA notified Calumet that we were successful in receiving full or partial exemptions on every petition that was filed by the Company from 2019 through 2024. With Friday's decision, the Company's prior 2019-2024 RIN balance sheet accrued liability of 396 million RINs is expected to be reduced to 89 million RINs, of which 57 million are of 2022 and 2023 vintage, and 32 million are 2024. We are studying the decision details and will seek additional information from the EPA regarding this residual.
"The recent EPA ruling under the Trump administration goes a long way to cleaning up the historical industry backlog," said Todd Borgmann, CEO. "For Calumet, the actions remove the majority of our historic RIN obligation. Further, the decision provides additional clarity for the renewable fuels industry and brings us one step closer to a properly functioning renewables market. We applaud the EPA for this meaningful step and its support for the critical role that small refiners and biofuels play in America's energy independence."
About Calumet
Calumet, Inc. (NASDAQ:CLMT) manufactures, formulates, and markets a diversified slate of specialty branded products and renewable fuels to customers across a broad range of consumer-facing and industrial markets. Calumet is headquartered in Indianapolis, Indiana and operates twelve facilities throughout North America.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements and information in this press release may constitute "forward-looking statements." The words "will," "may," "intend," "believe," "expect," "outlook," "forecast," "anticipate," "estimate," "continue," "plan," "should," "could," "would," or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. The statements discussed in this press release that are not purely historical data are forward-looking statements, including, but not limited to, the statements regarding (i) demand for finished products in markets we serve, (ii) our expectation regarding our business outlook and cash flows and (iii) our expectation that certain RINs will be removed from our balance sheet as a result of the EPA's recent SRE decisions. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our 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 our actual results to differ materially from our historical experience and our present expectations or projections. Known material factors that could cause our actual results to differ materially from those in the forward-looking statements include: the overall demand for specialty products, fuels, renewable fuels and other refined products; the level of foreign and domestic production of crude oil and refined products; our ability to produce specialty products, fuel products, and renewable fuel products that meet our customers' unique and precise specifications; the marketing of alternative and competing products; the impact of fluctuations and rapid increases or decreases in crude oil and crack spread prices, including the resulting impact on our liquidity; the results of our hedging and other risk management activities; our ability to comply with financial covenants contained in our debt instruments; the availability of, and our ability to consummate, acquisition or combination opportunities and the impact of any completed acquisitions; labor relations; our access to capital to fund expansions, acquisitions and our working capital needs and our ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets, businesses or third-party product supply and processing relationships; our ability to timely and effectively integrate the operations of acquired businesses or assets, particularly those in new geographic areas or in new lines of business; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit ratings and ability to receive open credit lines from our suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; our ability to access sufficient crude oil supply through long-term or month-to-month evergreen contracts and on the spot market; the effects of competition; continued creditworthiness of, and performance by, counterparties; the impact of current and future laws, rulings and governmental regulations, including guidance related to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the costs of complying with the Renewable Fuel Standard, including the prices paid for RINs; our ability to sell, and the prices received for, Clean Fuel Production Tax Credits; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; our ability to access the debt and equity markets; accidents or other unscheduled shutdowns; and general economic, market, business or political conditions, including inflationary pressures, instability in financial institutions, general economic slowdown or a recession, political tensions, conflicts and war (such as the ongoing conflicts in Ukraine and the Middle East and their regional and global ramifications).
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