Calumet Specialty Products Partners, L.P. Reports Fourth Quarter 2007 Earnings

Highlights for the quarter and year ended December 31, 2007 are as follows:

INDIANAPOLIS, Feb. 19 /PRNewswire-FirstCall/ -- Calumet Specialty Products
Partners, L.P. (Nasdaq: CLMT) (the "Partnership" or "Calumet") reported net
income for the three months ended December 31, 2007 of $7.8 million compared
to $32.1 million for the same period in 2006. Earnings before interest
expense, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA
(as defined by the Partnership's credit agreements) were $12.7 million and
$8.0 million, respectively, for the three months ended December 31, 2007 as
compared to $36.7 million and $23.3 million, respectively, for the comparable
periods in 2006. Distributable Cash Flow for the three months ended December
31, 2007 was $4.2 million as compared to $19.0 million for the same period in
2006.
Net income for the year ended December 31, 2007 was $82.9 million compared
to net income of $95.6 million for the same period in 2006. EBITDA and
Adjusted EBITDA were $102.7 million and $104.3 million, respectively, for the
year ended December 31, 2007 as compared to $119.6 million and $104.5 million,
respectively, for the same period in 2006. Distributable Cash Flow for the
year ended December 31, 2007 was $87.7 million. (See the section of this
release titled "Non-GAAP Financial Measures" and the attached tables for
discussion of EBITDA, Adjusted EBITDA, Distributable Cash Flow and other non-
generally accepted accounting principles ("non-GAAP") financial measures,
definitions of such measures and reconciliations of such measures to the
comparable GAAP measures.)
Financial results for the year ended December 31, 2006 include the
financial results of Calumet Lubricants Co., L.P. (the "Predecessor") through
January 31, 2006. For the period from January 1, 2006 to January 31, 2006,
the Predecessor generated net income of $4.4 million, EBITDA of $9.8 million,
and Adjusted EBITDA of $4.5 million. Substantially all of the assets and
operations of the Predecessor and its consolidated subsidiaries were
contributed to the Partnership in connection with the initial public offering
of 6,450,000 common units representing limited partnership interests in the
Partnership that closed on January 31, 2006.
Net income for the three months ended December 31, 2007 was $7.8 million
as compared to $32.1 million for the same period in 2006. The Partnership's
performance for the fourth quarter of 2007 as compared to the same period in
the prior year was negatively impacted by lower gross profit in our specialty
products segment. This decrease in gross profit is primarily the result of the
rising cost of crude oil outpacing increases in the selling prices per barrel
of our specialty products, partially offset by increased specialty products
sales volume. Fuel products segment gross profit increased quarter over
quarter primarily due to higher material costs from the use of certain
gasoline blendstocks to maintain compliance with environmental regulations in
the fourth quarter of 2006, with no such activity in 2007. Also increasing
gross profit were LIFO gains of $12.0 million resulting from the liquidation
of lower cost layers of inventory as compared to current costs. Net income
was also negatively affected by a decrease of $9.7 million in unrealized gain
on derivative instruments to a gain of $2.6 million for the quarter ended
December 31, 2007 from a gain of $12.3 million for the same period in 2006.
The decreased gain was primarily due to an unfavorable market change related
to the ineffective portion of certain derivative instruments designated as
cash flow hedges in the fourth quarter of 2007 as compared to the same period
in 2006.
Specialty Products segment sales volume for the fourth quarter of 2007 was
21,674 barrels per day (bpd) as compared to 20,473 bpd for the same period in
the prior year, an increase of 1,201 bpd or 5.9%.
Fuel Products segment sales volume for the fourth quarter of 2007 was
26,664 bpd as compared to 26,933 bpd in the same period for the prior year, a
decrease of 269 bpd, or 1.0%.
Gross profit by segment for the fourth quarter of 2007 for specialty
products and fuel products was $12.3 million and $15.7 million, respectively,
compared to $36.6 million and $7.1 million, respectively, for the same period
in 2006.
Effective January 1, 2008 the Company closed on the acquisition of
Penreco, a Texas general partnership, for a purchase price of approximately
$275.0 million, excluding customary post-closing purchase price adjustments.
Penreco was owned by ConocoPhillips Company and M.E. Zukerman Specialty Oil
Corporation. Penreco manufactures and markets highly refined products and
specialty solvents including white mineral oils, petrolatums, natural
petroleum sulfonates, cable-filling compounds, refrigeration oils, food-grade
compressor lubricants and gelled products. The acquisition includes plants in
Karns City, Pennsylvania and Dickinson, Texas, as well as several long-term
supply agreements with ConocoPhillips Company. The transaction was funded
through a portion of the combined proceeds from a public equity offering and a
new senior secured first lien term loan facility.
"We are excited to have completed our acquisition of Penreco. We expect
that this acquisition will provide key strategic benefits, including market
and administrative synergies and operational flexibility," said Bill Grube,
Calumet's President and CEO. "Progress continues on our Shreveport refinery
capacity expansion project, which we now expect to be substantially completed
in the first quarter of 2008, with production ramping up during the second
quarter of 2008. We believe with this acquisition and the completion of our
internal growth projects we will continue to deliver stable and consistent
growth to our unitholders in the coming years."
As announced on January 16, 2008, the Partnership declared a quarterly
cash distribution of $0.63 per unit on all outstanding units for the three
months ended December 31, 2007. The distribution was paid on February 14, 2008
to unitholders of record as of the close of business on February 14, 2008.

The following table sets forth unaudited information about our combined
refinery operations. Refining production volume differs from sales volume due
to changes in inventory.

Three Months Ended Year Ended
December 31, December 31,
------------------ -------------------
2007 2006 2007 2006(1)
------- ------- ------- --------
Sales volume (bpd):
Specialty products sales volume 21,674 20,473 23,041 25,109
Fuel products sales volume 26,664 26,933 24,622 25,236
------- ------- ------- --------
Total (2) 48,338 47,406 47,663 50,345

Total feedstock runs (bpd) (3)(4) 47,146 47,364 48,354 51,598
Refinery production (bpd):
Specialty products:
Lubricating oils 10,578 10,729 10,734 11,436
Solvents 4,932 5,359 5,104 5,361
Waxes 1,181 1,173 1,177 1,157
Fuels 1,853 1,297 1,951 2,038
Asphalt and other by-products 5,867 5,242 6,157 6,596
------- ------- ------- --------
Total 24,411 23,800 25,123 26,588
------- ------- ------- --------
Fuel products:
Gasoline 8,961 9,201 7,780 9,430
Diesel 6,059 5,822 5,736 6,823
Jet fuel 7,234 6,861 7,749 6,911
By-products 546 313 1,348 461
------- ------- ------- --------
Total 22,800 22,197 22,613 23,625
------- ------- ------- --------
Total refinery production (4) 47,211 45,997 47,736 50,213
======= ======= ======= ========

(1) Includes the period of January 1, 2006 through January 31, 2006 of the
Predecessor.

(2) Total sales volume includes sales from the production of our
refineries, sales of purchased products and sales of inventories.

(3) Feedstock runs represents the barrels per day of crude oil and other
feedstocks processed at our refineries. The decrease in feedstock runs
for the year ended December 31, 2007 was due to unscheduled downtime
of certain operating units at our Shreveport refinery in the second
quarter of 2007 as well as reduced production at our Shreveport
refinery due to incremental refining economics associated with the
rising cost of crude oil.

(4) Total refinery production represents the barrels per day of specialty
products and fuel products yielded from processing crude oil and other
refinery feedstocks at our refineries. The difference between total
refinery production and total feedstock runs is primarily a result of
the time lag between the input of feedstock and production of end
products and volume loss.

Update on Calumet's Expansion Project at its Shreveport Refinery
During 2006 and 2007, we have invested significantly in expanding and
enhancing the operations of our Shreveport refinery. We have invested
approximately $70.0 million and $242.0 million in 2006 and 2007, respectively.
Of these investments, approximately $250.7 million relates to our Shreveport
refinery expansion project.
The Shreveport expansion project is expected to increase throughput
capacity by 35.7% from 42,000 bpd to 57,000 bpd. As part of the Shreveport
refinery expansion project, we plan to enhance the Shreveport refinery's
ability to process sour crude oil by 8,000 bpd, bringing total capacity to
process sour crude oil to 13,000 bpd. Of the anticipated 57,000 bpd throughput
capacity upon completion of the expansion project, we expect the refinery to
have the capacity to process approximately 42,000 bpd of sweet crude oil and
13,000 bpd of sour crude oil, with the remainder coming from interplant
feedstocks. Progress continues on the expansion project and we expect it to
be completed in the first quarter of 2008 with production ramping up in the
second quarter of 2008. We now estimate that the total cost of the Shreveport
refinery expansion project will be approximately $300.0 million, an increase
of $80.0 million from our previous estimate. This increase is primarily due to
increased construction labor costs caused by the delay in startup of the
project.
Additionally, we have invested $4.5 million and $56.8 million,
respectively, in 2006 and 2007 in existing operating units primarily at our
Shreveport refinery for other capital expenditures including projects to
improve efficiency, de-bottleneck certain operating units and for new product
development. These expenditures are anticipated to enhance and improve our
product mix and operating cost leverage, but will not significantly increase
the feedstock throughput capacity of the refinery. We anticipate an
additional $49.3 million will be incurred in 2008 related to these projects.
About the Company
The Partnership is a leading independent producer of high-quality,
specialty hydrocarbon products in North America. The Partnership processes
crude oil and other feedstocks into customized lubricating oils, white oils,
solvents, petrolatums, waxes and other specialty products used in consumer,
industrial and automotive products. The Partnership also produces fuel
products including gasoline, diesel and jet fuel. The Partnership is based in
Indianapolis, Indiana and has five facilities located in northwest Louisiana,
western Pennsylvania and southeastern Texas.
A conference call is scheduled for 1:30 p.m. ET (12:30 p.m. CT) Wednesday,
February 20, 2008, to discuss the financial and operational results for the
fourth quarter of 2007. Anyone interested in listening to the presentation may
call 800-299-7098 and enter passcode 65200333. For international callers, the
dial-in number is 617-801-9715 and the passcode is 65200333.
The telephonic replay is available in the United States by calling
888-286-8010 and entering passcode 49891215. International callers can access
the replay by calling 617-801-6888 and entering passcode 49891215. The replay
will be available beginning Wednesday, February 20, 2008, at approximately
3:30 p.m. until Wednesday, March 5, 2008.
The information contained in this press release is available on the
Partnership's website at www.calumetspecialty.com.
Cautionary Statement Regarding Forward-Looking Statements
Some of the information in this release may contain forward-looking
statements. These statements can be identified by the use of forward-looking
terminology including "may," "believe," "expect," "anticipate," "estimate,"
"continue," or other similar words. These statements discuss future
expectations, contain projections of results of operations or of financial
condition, or state other "forward-looking" information. These forward-
looking statements involve risks and uncertainties that are difficult to
predict and may be beyond our control. These risks and uncertainties include
the success of the Partnership's risk management activities; the availability
of, and the Partnership's ability to consummate, acquisition or combination
opportunities; the Partnership's access to capital to fund acquisitions and
its ability to obtain debt or equity financing on satisfactory terms;
successful integration and future performance of acquired assets or
businesses; environmental liabilities or events that are not covered by an
indemnity; insurance or existing reserves; maintenance of the Partnership's
credit rating and ability to receive open credit from its suppliers; demand
for various grades of crude oil and resulting changes in pricing conditions;
fluctuations in refinery capacity; the effects of competition; continued
creditworthiness of, and performance by, counter parties; the impact of crude
oil price fluctuations; the impact of current and future laws, rulings and
governmental regulations; shortages or cost increases of power supplies,
natural gas, materials or labor; weather interference with business operations
or project construction; fluctuations in the debt and equity markets; and
general economic, market or business conditions. When considering these
forward-looking statements, you should keep in mind the risk factors and other
cautionary statements included in this release as well as the Partnership's
most recent Form 10-K and Form 10-Q's filed with the Securities and Exchange
Commission, which could cause the Partnership's actual results to differ
materially from those contained in any forward-looking statement. The
statements regarding (i) the Shreveport expansion project's expected
completion date, the Shreveport refinery expansion project's expected costs
and the resulting increases in throughput and production levels and (ii) the
Penreco acquisition, as well as other matters discussed in this news release
that are not purely historical data, are forward-looking statements.
Non-GAAP Financial Measures
We include in this release the non-GAAP financial measures of EBITDA,
Adjusted EBITDA and Distributable Cash Flow, and provide reconciliations of
net income to EBITDA, Adjusted EBITDA and Distributable Cash Flow and (in the
case of EBITDA and Adjusted EBITDA) to cash flow from operating activities,
our most directly comparable financial performance and liquidity measures
calculated and presented in accordance with GAAP.
EBITDA and Adjusted EBITDA 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.

We define EBITDA as net income plus interest expense (including debt
extinguishment costs), taxes and depreciation and amortization. We define
Adjusted EBITDA to be Consolidated EBITDA as defined in our credit facility
agreements. Consistent with that definition, Adjusted EBITDA, for any period,
equals: (1) net income plus (2)(a) interest expense; (b) taxes; (c)
depreciation and amortization; (d) unrealized losses from mark to market
accounting for derivative activities; (e) unrealized items decreasing net
income (including the non-cash impact of restructuring; decommissioning and
asset impairments in the periods presented); and (f) other non-recurring
expenses reducing net income which do not represent a cash item for such
period; minus (3)(a) tax credits; (b) unrealized items increasing net income
(including the non-cash impact of restructuring, decommissioning and asset
impairments in the periods presented); (c) unrealized gains from mark to
market accounting for derivative activities; and (d) other non-cash recurring
expenses and unrealized items that reduced net income for a prior period, but
represent a cash item in the current period. We are required to report
Adjusted EBITDA to our lenders under our credit facilities and it is used to
determine our compliance with the consolidated leverage test thereunder.
We believe that Distributable Cash Flow provides additional information
for investors to evaluate the Partnership's ability to declare and pay
distributions to unitholders.
We define Distributable Cash Flow as Adjusted EBITDA less maintenance
capital expenditures, cash interest paid (excluding capitalized interest) and
income tax expense.

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per unit data)

For the Three For the
Months Ended Year Ended
December 31, December 31,
-------------------- -----------------------
2007 2006 2007 2006
--------- ---------- ----------- -----------
Unaudited Unaudited Unaudited

Sales $436,925 $368,681 $1,637,848 $1,641,048
Cost of sales 408,950 325,010 1,456,492 1,436,108
---------- --------- ----------- -----------
Gross profit 27,975 43,671 181,356 204,940
Operating costs and expenses:
Selling, general and
administrative 3,545 5,539 19,614 20,430
Transportation 13,191 12,418 54,026 56,922
Taxes other than income taxes 943 817 3,662 3,592
Other 292 269 2,854 863
---------- --------- ----------- -----------
Operating income 10,004 24,628 101,200 123,133
---------- --------- ----------- -----------
Other income (expense):
Interest expense (1,243) (1,192) (4,717) (9,030)
Interest income 95 1,338 1,944 2,951
Debt extinguishment costs (5) - (352) (2,967)
Realized loss on derivative
instruments (2,826) (4,678) (12,484) (30,309)
Unrealized gain (loss) on
derivative instruments 2,641 12,325 (1,297) 12,264
Other expense (774) (238) (919) (274)
---------- --------- ----------- -----------
Total other income (expense) (2,112) 7,555 (17,825) (27,365)
---------- --------- ----------- -----------
Net income before income taxes 7,892 32,183 83,375 95,768
Income tax expense 101 63 501 190
---------- --------- ----------- -----------
Net income $7,791 $32,120 $82,874 $95,578
========== ========= =========== ===========

Allocation of net income:
Net income applicable to
Predecessor for the period
through January 31, 2006 - - - 4,408
---------- --------- ----------- -----------
Net income applicable to
Calumet 7,791 32,120 82,874 91,170
Minimum quarterly distribution
to common unitholders (7,926) (7,365) (30,021) (24,413)
General partner's incentive
distribution rights (6,704) (14,102) (18,912)
General partner's interest in
net income (156) (297) (939) (845)
Common unitholders' share of
income in excess of minimum
quarterly distribution - (6,603) (13,592) (18,312)
---------- --------- ----------- -----------
Subordinated partners'
interest in net income (loss) $(291) $11,151 $24,220 $28,688
========== ========= =========== ===========
Basic and diluted net income
(loss) per limited partner unit:
Common $0.45 $0.85 $2.63 $2.84
Subordinated ($0.02) $0.85 $1.85 $2.20
Weighted average limited
partner common units
outstanding - basic 17,614 16,366 16,678 14,642
Weighted average limited
partner common units
outstanding - diluted 17,615 16,366 16,680 14,642
Weighted average limited
partner subordinated units
outstanding - basic
and diluted 13,066 13,066 13,066 13,066

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

December 31, December 31,
2007 2006
------------- -------------
Unaudited
ASSETS
Current assets:
Cash $35 $80,955
Accounts receivable, net 113,997 99,000
Inventories 107,664 110,985
Derivative assets - 40,802
Prepaid expenses and other current assets 7,588 3,467
------------- -------------
Total current assets 229,284 335,209
Property, plant and equipment, net 431,043 191,732
Other noncurrent assets, net 6,691 4,710
------------- -------------
Total assets $667,018 $531,651
============= =============

LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable $156,139 $78,752
Other current liabilities 13,841 15,137
Current portion of long-term debt 943 500
Derivative liabilities 57,503 2,995
------------- -------------
Total current liabilities 228,426 97,384
Long-term debt, less current portion 38,948 49,000
------------- -------------
Total liabilities 267,374 146,384

Partners' capital:
Partners' capital 439,285 333,016
Accumulated other comprehensive
income (loss) (39,641) 52,251
------------- -------------
Total partners' capital 399,644 385,267
------------- -------------
Total liabilities and partners' capital $667,018 $531,651
============= =============

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

For the Year Ended
December 31,
--------------------
2007 2006
--------- ---------
Unaudited
Operating activities
Net income $82,874 $95,578
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 14,585 11,760
Amortization of turnaround costs 3,190 3,267
Debt extinguishment costs 352 2,967
Other non-cash activities 399 324
Changes in assets and liabilities:
Accounts receivable (15,038) 16,031
Inventories 3,321 (2,554)
Prepaid expenses and other current assets (4,121) 16,183
Derivative activity 3,418 (13,143)
Other noncurrent assets (6,510) 1,705
Accounts payable 77,387 33,993
Other current liabilities (4,150) 657
--------- ---------
Net cash provided by operating activities 155,707 166,768
Investing activities
Additions to property, plant and equipment (249,176) (76,064)
Proceeds from disposal of property, plant and
equipment 140 261
--------- ---------
Net cash used in investing activities (249,036) (75,803)
Financing activities
Proceeds from borrowings - credit agreements
with third parties 303,380 335,069
Repayment of borrowings - credit agreements
with third parties (315,824) (553,554)
Payments on capital lease obligation (906) -
Proceeds from public offerings, net 98,206 242,222
Contributions from Calumet GP, LLC 2,113 2,593
Cash distribution to Calumet Holding, LLC - (3,258)
Change in bank overdraft 2,854 -
Distributions to Predecessor partners - (6,900)
Distributions to partners (77,045) (38,286)
Repurchase of common units for phantom unit grants - (69)
Debt issuance costs (369) -
--------- ---------
Net cash provided by (used in) financing
activities 12,409 (22,183)
--------- ---------
Net increase (decrease) in cash (80,920) 68,782
Cash at beginning of period 80,955 12,173
--------- ---------
Cash at end of period $35 $80,955
========= =========
Supplemental disclosure of cash flow information
Interest paid $4,080 $11,986
========= =========
Income taxes paid $150 $175
========= =========
Supplemental disclosure of noncash financing and
investing activities
Equipment acquired under capital lease $3,565 $ -
========= =========

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA, AND DISTRIBUTABLE
CASH FLOW
(In thousands)

Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Unaudited Unaudited Unaudited Unaudited
Reconciliation of Net Income
to EBITDA, Adjusted EBITDA
and Distributable Cash Flow:
Net income $7,791 $32,120 $82,874 $95,578
Add:
Interest expense and debt
extinguishment costs 1,248 1,192 5,069 11,997
Depreciation and
amortization 3,591 3,365 14,275 11,821
Income tax expense 101 63 501 190
--------- --------- --------- ---------
EBITDA $12,731 $36,740 $102,719 $119,586
--------- --------- --------- ---------
Add:
Unrealized (gain) loss
from mark to market
accounting for hedging
activities $(1,530) $(12,402) $3,487 $(13,145)
Prepaid non-recurring
expenses and accrued
non-recurring expenses,
net of cash outlays (3,207) (1,031) (1,934) (1,983)
--------- --------- --------- ---------
Adjusted EBITDA $7,994 $23,307 $104,272 $104,458
--------- --------- --------- ---------
Less:
Adjusted EBITDA attributable
to Predecessor - - - (4,494)
Maintenance capital
expenditures (1) (2,557) (2,103) (12,007) (5,737)
Cash interest expense (2) (1,128) (2,129) (4,080) (8,124)
Income tax expense (101) (63) (501) (190)
--------- --------- --------- ---------
Distributable Cash Flow $4,208 $19,012 $87,684 $85,913
========= ========= ========= =========

(1) Maintenance capital expenditures are defined as those capital
expenditures which do not increase operating capacity or sales from
existing levels.
(2) Represents cash interest paid by the Partnership, excluding
capitalized interest.

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
RECONCILIATION OF ADJUSTED EBITDA AND EBITDA TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
(In thousands)

Year Ended
December 31,
---------------------
2007 2006
--------- ----------
Unaudited Unaudited
Reconciliation of Adjusted EBITDA and EBITDA to net
cash provided by operating activities:
Adjusted EBITDA $104,272 $104,458
Add:
Unrealized gain (loss) from mark to market
accounting for hedging activities (3,487) 13,145
Prepaid non-recurring expenses and accrued
non-recurring expenses, net of cash outlays 1,934 1,983
--------- ---------
EBITDA $102,719 $119,586
========= =========
Add:
Interest expense and debt extinguishment
costs, net (4,638) (11,997)
Income tax expense (501) (190)
Provision for doubtful accounts 41 172
Non-cash debt extinguishment costs 352 2,967
Changes in assets and liabilities:
Accounts receivable (15,038) 16,031
Inventory 3,321 (2,554)
Other current assets (4,121) 16,183
Derivative activity 3,418 (13,143)
Accounts payable 77,387 33,993
Other current liabilities (4,150) 657
Other, including changes in noncurrent assets
and liabilities (3,083) 5,063
--------- ---------
Net cash provided by operating activities $155,707 $166,768
========= =========

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
EXISTING COMMODITY DERIVATIVE INSTRUMENTS

The following table provides a summary of our derivatives and implied
crack spreads for the crude oil, diesel and gasoline swaps as of December 31,
2007:

Implied Crack
Swap Contracts by Expiration Dates Barrels BPD Spread ($/Bbl)
---------- ------ --------------
First Quarter 2008................... 2,184,000 24,000 12.63
Second Quarter 2008.................. 2,184,000 24,000 12.63
Third Quarter 2008................... 2,208,000 24,000 12.25
Fourth Quarter 2008.................. 2,116,000 23,000 12.42
Calendar Year 2009................... 8,212,500 22,500 11.43
Calendar Year 2010................... 7,482,500 20,500 11.20
Calendar Year 2011................... 2,096,500 5,744 11.15
---------- --------------
Totals............................... 26,483,500
Average price........................ $11.69

The following tables provide information about our derivative instruments
related to our specialty products segment as of December 31, 2007:
Average Average Average Average
Crude Oil Put/Call Spread Lower Upper Lower Upper
Contracts by Expiration Put Put Call Call
Dates Barrels BPD ($/Bbl) ($/Bbl) ($/Bbl) ($/Bbl)
------------------------- ------- ----- ------- ------- ------- -------
January 2008............ 248,000 8,000 $67.85 $77.85 $87.85 $97.85
February 2008........... 232,000 8,000 76.13 86.13 96.13 106.13
March 2008.............. 248,000 8,000 77.63 87.63 97.63 107.63
Second quarter 2008..... 182,000 2,000 74.30 84.30 94.30 104.30
Third quarter 2008...... 184,000 2,000 74.30 84.30 94.30 104.30
------- ------- ------- ------- -------
Totals..................1,094,000
Average price........... $74.01 $84.01 $94.01 $104.01

Crude Oil Swap Contracts
by Expiration Dates Barrels BPD ($/Bbl)
------------------------ ------- ----- -------
First Quarter 2008............................... 91,000 1,000 90.92
------- -------
Totals........................................... 91,000
Average Price.................................... $90.92

Natural Gas Swap Contracts
by Expiration Dates Mmbtu $/MMbtu
-------------------------- --------- -------
First Quarter 2008...................................... 850,000 $8.76
Third Quarter 2008...................................... 60,000 $8.30
Fourth Quarter 2008..................................... 90,000 $8.30
First Quarter 2009...................................... 90,000 $8.30
--------- -------
Totals..................................................1,090,000
Average price........................................... $8.66

SOURCE Calumet Specialty Products Partners, L.P.

Jennifer Straumins, Investor Relations of Calumet Specialty Products Partners,
L.P., +1-317-328-5660