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 SEPTEMBER 30, 2020

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) 

DE					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	NASDAQ

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	x
Non-accelerated filer	o	Smaller reporting company	o
		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 November 5, 2020, there were 78,062,346 common units outstanding.

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

QUARTERLY REPORT

For the Three and Nine Months Ended September 30, 2020

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	39
Item 3. Quantitative and Qualitative Disclosures About Market Risk	63
Item 4. Controls and Procedures	65
Part II
Item 1. Legal Proceedings	66
Item 1A. Risk Factors	66
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	66
Item 3. Defaults Upon Senior Securities	66
Item 4. Mine Safety Disclosures	66
Item 5. Other Information	66
Item 6. Exhibits	66

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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 “may,” “intend,” “believe,” “expect,” “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 and global crude oil production levels on our business and operations; (ii) demand for refined petroleum 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, (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) our ability to remediate the identified material weakness and further strengthen the overall controls surrounding information systems, (x) the future effectiveness of our enterprise resource planning (“ERP”) system to further enhance operating efficiencies and provide more effective management of our business operations and (xi) potential costs and savings associated with our cost reduction plan to reduce overall operating expenses, 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. Known material factors that could cause our actual results to differ from those in the forward-looking statements are those described in (i) Part I, Item 1A “Risk Factors” and Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (“2019 Annual Report”), (ii) Part II, Item 1A “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and (iii) Part I, Item 3 “Quantitative and Qualitative Disclosures About Market Risk” and Part II, Item 1A “Risk Factors” in this Quarterly Report. 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.

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PART I

Item 1. Financial Statements

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2020		December 31, 2019
	(Unaudited)
	(In millions, except unit data)
ASSETS
Current assets:
Cash and cash equivalents	$	109.4	$	19.1
Accounts receivable, net	161.1		175.0
Other	13.9		13.5
	175.0		188.5
Inventories	230.8		292.6
Derivative assets	13.0		0.9
Prepaid expenses and other current assets	12.8		11.0
Total current assets	541.0		512.1
Property, plant and equipment, net	932.9		973.5
Goodwill	172.5		171.4
Other intangible assets, net	61.3		71.2
Operating lease right-of-use assets	66.4		93.1
Other noncurrent assets, net	33.4		36.5
Total assets	$	1,807.5	$	1,857.8
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Current liabilities:
Accounts payable	$	158.4	$	230.2
Accrued interest payable	45.5		32.0
Accrued salaries, wages and benefits	31.4		35.7
Other taxes payable	15.7		11.8
Obligations under inventory financing agreements	89.2		134.3
Other current liabilities	103.0		58.6
Current portion of operating lease liabilities	26.4		60.6
Current portion of long-term debt	2.1		1.8
Total current liabilities	471.7		565.0
Pension and postretirement benefit obligations	7.4		7.9
Other long-term liabilities	19.4		20.8
Long-term operating lease liabilities	40.5		33.0
Long-term debt, less current portion	1,313.3		1,209.5
Total liabilities	1,852.3		1,836.2
Commitments and contingencies
Partners’ capital (deficit):
Limited partners’ interest 78,055,816 units and 77,560,355 units issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	(44.9)		20.2
General partner’s interest	10.7		12.0
Accumulated other comprehensive loss	(10.6)		(10.6)
Total partners’ capital (deficit)	(44.8)		21.6
Total liabilities and partners’ capital (deficit)	$	1,807.5	$	1,857.8

See accompanying notes to unaudited condensed consolidated financial statements.

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CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions, except per unit and unit data)
Sales	$	568.0	$	929.6	$	1,714.3	$	2,677.8
Cost of sales	523.4		811.8		1,526.1		2,316.9
Gross profit	44.6		117.8		188.2		360.9
Operating costs and expenses:
Selling	11.2		12.6		37.1		40.2
General and administrative	29.7		32.8		76.7		105.5
Transportation	28.1		28.4		83.7		95.9
Taxes other than income taxes	3.9		5.7		6.2		15.5
Loss on impairment and disposal of assets	—		3.2		6.7		31.1
Other operating expense	2.5		1.7		9.7		0.8
Operating income (loss)	(30.8)		33.4		(31.9)		71.9
Other income (expense):
Interest expense	(33.3)		(33.8)		(93.2)		(99.2)
Gain on debt extinguishment	—		—		—		0.7
Gain (loss) on derivative instruments	7.9		(5.0)		57.7		14.4
Other	0.2		1.3		1.3		7.9
Total other expense	(25.2)		(37.5)		(34.2)		(76.2)
Net loss before income taxes	(56.0)		(4.1)		(66.1)		(4.3)
Income tax expense	0.1		0.5		0.8		0.7
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Allocation of net loss:
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Less:
General partner’s interest in net loss	(1.1)		(0.1)		(1.3)		(0.1)
Net loss available to limited partners	$	(55.0)	$	(4.5)	$	(65.6)	$	(4.9)
Weighted average limited partner units outstanding:
Basic and diluted	78,743,083		78,299,472		78,602,651		78,174,976
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.70)	$	(0.06)	$	(0.83)	$	(0.06)

See accompanying notes to unaudited condensed consolidated financial statements.

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CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Other comprehensive income (loss):
Cash flow hedge loss	—		—		(0.2)		—
Defined benefit pension and retiree health benefit plans	0.2		—		0.2		—
Foreign currency translation adjustment	—		—		—		1.2
Total other comprehensive income	0.2		—		—		1.2
Comprehensive loss attributable to partners’ capital	$	(55.9)	$	(4.6)	$	(66.9)	$	(3.8)

See accompanying notes to unaudited condensed consolidated financial statements.

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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 June 30, 2020	$	(10.8)	$	11.8	$	9.9	$	10.9
Other comprehensive income	0.2		—		—		0.2
Net loss	—		(1.1)		(55.0)		(56.1)
Amortization of phantom units	—		—		0.2		0.2
Balance at September 30, 2020	$	(10.6)	$	10.7	$	(44.9)	$	(44.8)

	Accumulated Other Comprehensive Loss		Partners’ Capital (Deficit)
			General Partner		Limited Partners		Total
	(In millions)
Balance at December 31, 2019	$	(10.6)	$	12.0	$	20.2	$	21.6
Net loss	—		(1.3)		(65.6)		(66.9)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(0.5)		(0.5)
Amortization of phantom units	—		—		1.0		1.0
Balance at September 30, 2020	$	(10.6)	$	10.7	$	(44.9)	$	(44.8)

	Accumulated Other Comprehensive Loss		Partners’ Capital
			General Partner		Limited Partners		Total
	(In millions)
Balance at June 30, 2019	$	(7.5)	$	12.9	$	61.7	$	67.1
Net loss	—		(0.1)		(4.5)		(4.6)
Amortization of phantom units	—		—		0.3		0.3
Balance at September 30, 2019	$	(7.5)	$	12.8	$	57.5	$	62.8

	Accumulated Other Comprehensive Loss		Partners’ Capital
			General Partner		Limited Partners		Total
	(In millions)
Balance at December 31, 2018	$	(8.7)	$	12.8	$	61.6	$	65.7
Other comprehensive income	1.2		—		—		1.2
Net loss	—		(0.1)		(4.9)		(5.0)
Settlement of tax withholdings on equity-based incentive compensation	—		—		(0.5)		(0.5)
Amortization of phantom units	—		—		1.3		1.3
Contributions from Calumet GP, LLC	—		0.1		—		0.1
Balance at September 30, 2019	$	(7.5)	$	12.8	$	57.5	$	62.8

See accompanying notes to unaudited condensed consolidated financial statements.

7

CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30,
	2020		2019
	(In millions)
Operating activities
Net loss	$	(66.9)	$	(5.0)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	78.8		82.6
Amortization of turnaround costs	12.7		16.5
Non-cash interest expense	4.8		4.9
Gain on debt extinguishment	—		(0.7)
Unrealized (gain) loss on derivative instruments	(21.2)		20.2
Loss on impairment and disposal of assets	6.7		31.1
Operating lease expense	45.0		57.1
Operating lease payments	(45.0)		(57.1)
Equity-based compensation	2.5		4.9
Lower of cost or market inventory adjustment	35.3		(38.8)
Other non-cash activities	0.8		(7.0)
Changes in assets and liabilities:
Accounts receivable	10.7		(49.8)
Inventories	26.6		29.6
Prepaid expenses and other current assets	1.3		4.6
Derivative activity	(0.3)		(0.4)
Turnaround costs	(19.7)		(16.8)
Accounts payable	(55.5)		61.7
Accrued interest payable	12.7		10.8
Accrued salaries, wages and benefits	(5.7)		2.6
Other taxes payable	3.9		6.0
Other liabilities	38.1		(3.1)
Net cash provided by operating activities	$	65.6	$	153.9
Investing activities
Additions to property, plant and equipment	(35.5)		(27.4)
Acquisition of business, net of cash acquired	(3.3)		—
Proceeds from sale of unconsolidated affiliate	—		5.0
Proceeds from sale of property, plant and equipment	—		3.7
Net cash provided by discontinued operations	0.9		5.0
Net cash used in investing activities	$	(37.9)	$	(13.7)
Financing activities
Proceeds from borrowings — revolving credit facility	895.9		—
Repayments of borrowings — revolving credit facility	(795.8)		—
Repayments of borrowings — senior notes	—		(137.3)
Payments on finance lease obligations	(0.4)		(0.9)
Proceeds from inventory financing	584.8		848.7
Payments on inventory financing	(620.1)		(840.7)
Proceeds from other financing obligations	31.4		—
Payments on other financing obligations	(33.2)		(1.6)
Contributions from Calumet GP, LLC	—		0.1
Net cash provided by (used in) in financing activities	$	62.6	$	(131.7)
Net increase in cash and cash equivalents	$	90.3	$	8.5
Cash and cash equivalents at beginning of period	19.1		155.7
Cash and cash equivalents at end of period	$	109.4	$	164.2
Supplemental disclosure of non-cash investing activities
Non-cash property, plant and equipment additions	$	3.8	$	12.3

See accompanying notes to unaudited condensed consolidated financial statements.

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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 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 September 30, 2020, the Company had 78,055,816 limited partner common units and 1,592,974 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 is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, white mineral oils, solvents, petrolatums, waxes, synthetic lubricants, packaged fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and heavy fuel oils. The Company is based in Indianapolis, Indiana and owns and leases specialty and fuel products facilities, primarily related to production and marketing of specialty and fuel products, throughout the United States.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019, 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 nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2019 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.

Other Current Liabilities

Other current liabilities consisted of the following (in millions):

	September 30, 2020		December 31, 2019
RINs Obligation	$	76.1	$	13.0
Transition Services Agreement Payable	—		19.8
Net working capital adjustment liabilities	—		6.9
Other	26.9		18.9
Total other current liabilities	$	103.0	$	58.6

The Company’s Renewable Identification Numbers (“RINs”) obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. Environmental Protection Agency (“EPA”) requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard (“RFS”). RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date.

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The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RINs spot price. The Company recognizes an asset at the end of each reporting period in which it has generated RINs in excess of its RINs Obligation. The asset is initially recorded at cost at the time the Company acquires them and is subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in cost of sales for the period in the unaudited condensed consolidated statements of operations, with the exception of the RINs for compliance year 2019 related to the San Antonio Refinery, which is reflected in other (income) expense within operating income in the unaudited condensed consolidated statements of operations. The value of RINs in excess of the RINs Obligation, if any, would be reflected in other current assets on the condensed consolidated balance sheet. RINs generated in excess of the Company’s current RINs Obligation may be sold or held to offset future RINs Obligations. Any such sales of excess RINs are recorded in cost of sales in the unaudited condensed consolidated statement 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.

Loss on Impairment and Disposal of Assets

The Company’s unaudited condensed consolidated statements of operations for the three months ended September 30, 2019 included a Loss on impairment and disposal of assets of $3.2 million. The Company did not record a Loss on impairment and disposal of assets for the three months ended September 30, 2020. The Company’s unaudited condensed consolidated statements of operations for the nine months ended September 30, 2020 and 2019 included a Loss on impairment and disposal of assets of $6.7 million and $31.1 million, respectively. For the nine months ended September 30, 2020, Loss on impairment and disposal of assets primarily consisted of a $5.1 million write-off of an other receivable for the remaining payment related to the sale of Anchor Drilling Fluids USA, LLC in 2017 and $1.5 million for the disposal of assets related to Bel-Ray facility (please read Note 13 - “Restructuring” for additional information regarding the Company’s restructuring program). For the nine months ended September 30, 2019, Loss on impairment and disposal of assets consisted of $10.7 million for the Company’s cease of use of the assets associated with the TexStar Midstream Logistics, L.P. Throughput and Deficiency Agreement, $19.7 million in impairment charges for the Company’s investment in Fluid Holding Corp. (“FHC”), and $0.7 million of net losses recorded on other various asset disposals during the period. The fair value of the Loss on impairment and disposal of assets were based on Level 3 inputs.

Adopted Accounting Pronouncements

On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which changed the impairment model for most financial instruments. Previous guidance required the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. Under ASU 2016-13, the Company is required to use a current expected credit loss (“CECL”) model that immediately recognizes an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of the update, including trade receivables. The CECL model uses a broader range of reasonable and supportable information in the development of credit loss estimates. The result of the adoption of ASU 2016-13 was de-minimis and did not result in an adjustment to beginning partners’ capital. The allowance for credit losses for accounts receivable was $0.8 million at September 30, 2020 and $0.9 million at January 1, 2020, respectively.

On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) and all the related amendments to its lease contracts using the modified retrospective method. The effective date was used as the Company’s date of initial application with no restatement of prior periods. Please read Note 5 - “Leases” for further information.

On January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Given the Company’s current risk management strategy of not designating any of its derivative positions as hedges, the adoption of this guidance had no effect on the Company’s unaudited condensed consolidated financial statements. If, in the future, the Company decides to modify its hedging strategies, this new accounting guidance would become applicable and will be applied at that time.

On January 1, 2019, the Company adopted ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-07”). This update simplifies the guidance related to non-employee share-based payments by superseding ASC 505-50 and expanding the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. Prior to the issuance of this standard update, non-employee share-based payments were subject to ASC 505-50 requirements while employee share-based payments were subject to ASC 718 requirements. The adoption of ASU 2018-07 had no impact on the Company’s unaudited condensed consolidated financial statements.

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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, Revenue from Contracts with Customers, 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 is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, solvents, waxes, synthetic lubricants and other products which comprise the specialty products segment. The Company is also engaged in the production of fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and other products which comprise the fuel products segment.

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.

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.

Disaggregation of Revenue

The following table reflects the disaggregation of revenue by major source (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Sales by major source
Standard specialty products	$	220.4	$	296.2	$	663.5	$	872.2
Packaged and synthetic specialty products	60.9		59.6		177.4		180.2
Total specialty products	281.3		355.8		840.9		1,052.4
Fuel and fuel related products	238.8		508.4		743.2		1,446.3
Asphalt	47.9		65.4		130.2		179.1
Total fuel products	286.7		573.8		873.4		1,625.4
Total sales	$	568.0	$	929.6	$	1,714.3	$	2,677.8

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Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. 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 continues 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 and warranties as variable consideration when determining the transaction price.

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 September 30, 2020 and December 31, 2019 were $161.1 million and $175.0 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 nine months ended September 30, 2020, 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. The Company recorded no activity during the three months ended September 30, 2019, while the Company recorded a $0.9 million increase in cost of sales as a result of such activity during the nine months ended September 30, 2019.

Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. The replacement cost of these inventories, based on current market values, would have been $20.0 million lower and $17.7 million higher as of September 30, 2020 and December 31, 2019, 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. The crude oil remains in the legal title of Macquarie and is stored in the Company’s refinery storage tanks governed by storage agreements. Legal title to the crude oil passes to the Company at the storage tank outlet for processing into refined products. After processing, Macquarie takes title to the refined products stored in the Company’s storage tanks until sold to third parties. 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. The Company is obligated to repurchase the inventory in certain scenarios.

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Inventories consist of the following (in millions):

	September 30, 2020						December 31, 2019
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	29.1	$	10.2	$	39.3	$	48.3	$	11.6	$	59.9
Work in process	30.7		22.6		53.3		35.0		29.1		64.1
Finished goods	105.3		32.9		138.2		124.8		43.8		168.6
	$	165.1	$	65.7	$	230.8	$	208.1	$	84.5	$	292.6

(1)Amounts represent LIFO value and do not necessarily represent the value of product financing. 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 September 30, 2020 and 2019, the Company recorded an increase in the LCM valuation reserve of $1.1 million and $2.7 million, respectively, in cost of sales, as a result of decreasing market prices. During the nine months ended September 30, 2020 and 2019, the Company recorded an increase of $35.3 million and a decrease of $38.8 million, respectively, in cost of sales due to the sale of inventory previously adjusted through the LCM valuation.

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 15 years, some of which include options to extend the lease for up to 35 years, and others of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases as of September 30, 2020 and December 31, 2019, were as follows (in millions):

		September 30, 2020		December 31, 2019
Assets:	Classification:
Operating lease assets	Operating lease right-of-use assets (1)	$	66.4	$	93.1
Finance lease assets	Property, plant and equipment, net (2)	4.2		3.2
Total leased assets		$	70.6	$	96.3
Liabilities:
Current
Operating	Current portion of operating lease liabilities (1)	$	26.4	$	60.6
Finance	Current portion of long-term debt	0.6		0.3
Non-current
Operating	Long-term operating lease liabilities (1)	40.5		33.0
Finance	Long-term debt, less current portion	3.3		2.4
Total lease liabilities		$	70.8	$	96.3

(1)In the third quarter of 2020, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $20.3 million.

(2)Finance lease assets are recorded net of accumulated amortization of $3.2 million and $7.1 million as of September 30, 2020 and December 31, 2019, 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 three and nine months ended September 30, 2020 and 2019 were as follows (in millions).

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Costs:	Classification:	2020		2019		2020		2019
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	10.3	$	16.7	$	36.4	$	50.4
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.7		2.2		6.9		5.6
Variable operating lease cost (2) (3)	Cost of Sales; SG&A Expenses	0.4		0.4		1.7		1.1
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.1		0.4		0.4		1.1
Interest on lease liabilities	Interest expense	0.1		0.2		0.3		1.3
Total lease cost		$	12.6	$	19.9	$	45.7	$	59.5

(1)The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

(2)Approximately $0.8 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively, of the Company’s variable operating lease cost relates to its lease agreement with Phillips 66 associated with the LVT unit at its Lake Charles, Louisiana refinery (the “LVT Agreement”). Pursuant to the LVT Agreement, Phillips 66 is obligated to supply a minimum supply quantity which the Company agreed to purchase through December 31, 2020. Pricing for the agreement is indexed to the prior month’s average of Platts Mid USGC 55 Grade Jet Kero price on the day of loading plus a specified margin. Phillips 66 invoices the Company for the estimated volume of product to be purchased by the Company based on a supplied forecast and differences between actual volumes purchased and the estimated volume of product originally billed, which makes up the variable component of the operating lease contract. There were no variable operating lease costs related to the LVT Agreement for the three months ended September 30, 2020 and 2019, respectively.

(3)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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As of September 30, 2020, 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
2020	$	16.2	$	0.2	$	16.4
2021	17.8		0.9		18.7
2022	13.9		0.9		14.8
2023	10.4		0.9		11.3
2024	6.9		0.9		7.8
Thereafter	13.8		1.1		14.9
Total	$	79.0	$	4.9	$	83.9
Less: Interest	12.1		1.0		13.1
Present value of lease liabilities	$	66.9	$	3.9	$	70.8

(1)As of September 30, 2020, 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 September 30, 2020.

(2)As of September 30, 2020, 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 September 30, 2020.

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:

	September 30, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	4.2
Finance leases	5.6
Weighted-average discount rate:
Operating leases	7.7	%
Finance leases	7.4	%

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.

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Environmental

The Company conducts crude oil and specialty hydrocarbon 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.

Cotton Valley, Princeton and Shreveport Refineries

Since 2013, the Louisiana Department of Environmental Quality (“LDEQ”) has issued Consolidated Compliance Orders & Notices of Proposed Penalties to the Cotton Valley, Princeton and Shreveport refineries relating to various alleged air quality and wastewater regulatory violations. The Company has responded to the various orders. The Company and LDEQ have reached a tentative agreement to resolve the applicable matters, which would require that the Company pay a penalty of approximately $0.1 million. The Company is working with LDEQ to formalize the settlement. The Company expects that the amount of the penalty contained in the final settlement will not be material to its financial position or results of operations and any conditions established by LDEQ on the Company’s operations will not be material to the Company’s operations.

Renewable Identification Numbers Obligation

As of September 30, 2020 and December 31, 2019, the Company had a RINs Obligation of $76.1 million and $13.0 million, respectively.

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.

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Other Matters, Claims and Legal Proceedings

On October 31, 2018, the Company received an indemnity claim notice (the “Claim Notice”) from Husky Superior Refining Holding Corp. (“Husky”) under the Membership Interest Purchase Agreement, dated August 11, 2017 (the “MIPA”), which was entered into in connection with the disposition of the Superior Refinery. The Claim Notice relates to alleged losses Husky incurred in connection with a fire at the Husky Superior refinery on April 26, 2018, over five months after Calumet sold Husky 100% of the membership interests in the entity that owns the Husky Superior refinery. Calumet understands the fire occurred during a turnaround of the Husky Superior refinery at a time when Husky owned, operated, and supervised the refinery. Calumet was not involved with the turnaround. The U.S. Chemical Safety and Hazard Investigation Board (“CSB”) is currently investigating the fire. The CSB has not suggested that Calumet is responsible for the fire. Husky’s Claim Notice alleges that Husky “has become aware of facts which may give rise to losses” for which it reserved the right to seek indemnification at a later date. The Claim Notice further alleges breaches of certain representations, warranties, and covenants contained in the MIPA. We believe that the information currently available about the fire and the CSB investigation does not support Husky’s threatened claims, and Husky has not filed a lawsuit against Calumet. If Husky were to seek recourse under the MIPA for such claims, they would be subject to certain limits on indemnification liability that may reduce or eliminate any potential indemnification liability.

Beginning in 2017, the Company initiated the first of several claims in Cascade County Circuit Court against the Montana Department of Revenue to recover overpaid taxes resulting from the county’s excessive property tax assessment of the Company’s Great Falls refinery for the 2017, 2018, and 2019 tax years. As of September 30, 2020, the county has refunded, as the result of various court decisions, $6.0 million in excessive taxes and interest to the Company. The claims arising from the 2017, 2018, and 2019 tax years are closed. The $6.0 million was recorded as a reduction of taxes other than income taxes for the nine month period ended September 30, 2020.

The Company is subject to other 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 September 30, 2020 and December 31, 2019, the Company had outstanding standby letters of credit of $29.7 million and $42.5 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 September 30, 2020 and December 31, 2019, 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 $300.0 million, which may be increased with the consent of the Agent (as defined in the Credit Agreement) to 90% of revolver commitments then in effect ($600.0 million at September 30, 2020 and December 31, 2019).

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 September 30, 2020, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2020	$	1.0
2021	3.9
2022	3.9
2023	3.9
2024	4.0
Thereafter	10.0
Total (1)	$	26.7

(1)As of September 30, 2020, 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

On March 31, 2017, the Company entered into several agreements with Macquarie to support the operations of the Great Falls refinery (the “Great Falls Supply and Offtake Agreements”). On July 27, 2017, the Company amended the Great Falls Supply and Offtake Agreements to provide Macquarie the option to terminate the Great Falls Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Great Falls Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Great Falls Supply and Offtake Agreements) from September 30, 2019 to June 30, 2023.

On June 19, 2017, the Company entered into several agreements with Macquarie to support the operations of the Shreveport refinery (the “Shreveport Supply and Offtake Agreements” and together with the Great Falls Supply and Offtake Agreements, the “Supply and Offtake Agreements”). Since inception, the Shreveport Supply and Offtake Agreements were set to expire on June 30, 2020; however, Macquarie has the option to terminate the Shreveport Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Shreveport Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Shreveport Supply and Offtake Agreements) from June 30, 2020 to 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. The Company agreed to purchase the crude oil on a just-in-time basis to support the production operations at the Great Falls and Shreveport refineries. Additionally, the Company agreed to sell, and Macquarie agreed to buy, at market prices, refined products produced at the Great Falls and Shreveport refineries. For Shreveport, finished products consisting of finished fuel products (other than jet fuel), lubricants and waxes, Macquarie may (but is not required to) sell such products to the sales intermediation party (“SIP”), and the SIP may (but is not required to) sell such products to Shreveport, as applicable, for sale in turn to third parties. For jet fuel and certain intermediate products, Macquarie may (but is not required to) sell such products to Shreveport for sale thereby to third parties. The Company will then repurchase the refined products from Macquarie or the SIP prior to selling the refined products to third parties.

The Supply and Offtake Agreements are subject to minimum and maximum inventory levels. The agreements also provide for the lease to Macquarie of crude oil and certain refined product storage tanks located at the Great Falls and Shreveport refineries and certain offsite locations. Following expiration or termination of the agreements, Macquarie has the option to require the Company to purchase the crude oil and refined product inventories then owned by Macquarie and located at the leased storage tanks at then current market prices. In addition, barrels owned by the Company are pledged as collateral to support the Deferred Payment Arrangement (defined below) obligations under these agreements.

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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. Each reporting period, the Company records liabilities in an amount equal to the amount the Company expects to pay to repurchase the inventory held by Macquarie based on market prices at the termination date included in obligations under inventory financing agreements in the condensed consolidated balance sheets. The Company has determined that the redemption feature on the initially recognized liabilities 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 gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations. For more information on the valuation of the associated derivatives, please read Note 9 - “Derivatives” and Note 10 - “Fair Value Measurements.” The embedded derivatives will be recorded in obligations under inventory financing agreements on the condensed consolidated balance sheets. The cash flow impact of the embedded derivatives will be classified as a change in unrealized (gain) loss on derivative instruments in the operating activities section in the unaudited condensed consolidated statements of cash flows.

For the three months ended September 30, 2020 and 2019, the Company incurred expenses of $1.2 million and $5.6 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 nine months ended September 30, 2020 and 2019, the Company received a $2.0 million benefit and incurred an $11.7 million expense, 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 $11.1 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 September 30, 2020 and December 31, 2019, the Company had $16.1 million and $26.3 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 September 30, 2020.

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8. Long-Term Debt

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

	September 30, 2020		December 31, 2019
Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rates of 2.6% and 4.3% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively	$	100.1	$	—
Borrowings under the 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.1% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively. (1)	150.7		351.1
Borrowings under the 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.1% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.	325.0		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 9.4% for the nine months ended September 30, 2020.	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 11.3% and 11.2% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.	550.0		550.0
Other	2.7		3.8
Finance lease obligations, at various interest rates, interest and monthly principal payments	3.9		2.7
Less unamortized debt issuance costs (2)	(14.9)		(18.4)
Less unamortized discounts	(2.1)		(2.9)
Total debt	$	1,315.4	$	1,211.3
Less current portion of long-term debt	2.1		1.8
Total long-term debt	$	1,313.3	$	1,209.5

(1)The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively.

(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 $19.2 million and $15.7 million at September 30, 2020 and December 31, 2019, respectively.

Senior Notes

On August 5, 2020, the Company consummated a transaction whereby it exchanged approximately $200.0 million aggregate principal amount of its outstanding 7.625% Senior Notes due 2022 (the “2022 Notes”) for $200.0 million aggregate principal amount of newly issued 9.25% Senior Secured First Lien Notes due 2024 (the “2024 Secured Notes”) (the “Exchange Transaction”). In connection with the Exchange Transaction, the Company incurred $5.4 million of fees.

In accordance with SEC Rule 3-10 of Regulation S-X, consolidated financial statements of non-guarantors are not required. The Company has no material assets or operations independent of its subsidiaries. Obligations under the 2022 Notes, its 7.75% Senior Notes due 2023 (the “2023 Notes”), the 2024 Secured Notes and its 11.00% Senior Notes due 2025 (the “2025 Notes” and, together with the 2022 Notes, the 2023 Notes and the 2024 Secured Notes, the “Senior Notes”) are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis (except the 2024 Secured Notes are fully and unconditionally and jointly and severally guaranteed on a senior secured first lien basis) by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries, with the exception of the Company’s “minor” subsidiaries (as defined by Rule 3-10 of Regulation S-X), including Calumet Finance Corp. (100%-owned Delaware corporation that was organized for the sole purpose of being a co-issuer of certain of the Company’s indebtedness, including the Senior Notes). There are no significant restrictions on the ability of the Company or subsidiary guarantors for the Company to obtain funds from its subsidiary guarantors by dividend or loan. None of the subsidiary guarantors’ assets represent restricted assets pursuant to SEC Rule 4-08(e)(3) of Regulation S-X.

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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 September 30, 2020, the Company’s Fixed Charge Coverage Ratio (as defined in the indentures governing the Senior Notes) was 1.6. As of September 30, 2020, the Company was in compliance with all covenants under the indentures governing the Senior Notes.

Paycheck Protection Program Notes

In April 2020, the Company entered into several Paycheck Protection Program Notes (the “Term Notes”) with BMO Harris Bank National Association and Star Financial Bank as the lenders (“Lenders”) in an aggregate principal amount of $31.4 million pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company subsequently repaid the Term Notes in full on May 18, 2020.

Third Amended and Restated Senior Secured Revolving Credit Facility

On February 23, 2018, the Company entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”) governing its senior secured revolving credit facility maturing in February 2023, which provides maximum availability of credit under the revolving credit facility of $600.0 million, subject to borrowing base limitations, and includes a $500.0 million incremental uncommitted expansion feature. The revolving credit facility includes a $25.0 million senior secured first loaned in and last to be repaid out (“FILO”) revolving credit facility limited by a FILO borrowing base calculation. The FILO commitment reduces ratably each quarter starting in November 2019 and ending in August 2020. The reductions in FILO commitments convert to revolving credit facility base commitments over the same period. Lenders under the revolving credit facility have a first priority lien on, among other things, the Company’s accounts receivable and inventory and substantially all of its cash.

On September 4, 2019, the Company entered into the First Amendment to the Credit Agreement (the “First Amendment”). The amendment expanded the borrowing base by $99.6 million effective October 11, 2019, by adding the fixed assets of the Company’s Great Falls, MT refinery as collateral to the borrowing base. The $99.6 million expansion amortizes to zero on a straight-line basis over ten quarters starting in the first quarter of 2020. Additionally, while the fixed assets of the Great Falls, MT refinery are included in the borrowing base, the First Amendment provides for a 25 basis points increase in the applicable margin for loans, as well as increases in the minimum availability under the revolving credit facility required for the Company to be able to perform certain actions, including to make restricted payments of other distributions, sell or dispose of certain assets, make acquisitions or investments, or prepay other indebtedness.

The revolving credit facility, which is the Company’s primary source of liquidity for cash needs in excess of cash generated from operations, bears interest at a rate equal to prime plus a basis points margin or LIBOR plus a basis points margin, at the Company’s option.

The margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows:

	Base Loans		FILO Loans
Quarterly Average Availability Percentage	Prime Rate Margin	LIBOR Rate Margin	Prime Rate Margin	LIBOR Rate Margin
≥ 66%	0.50%	1.50%	1.50%	2.50%
≥ 33% and < 66%	0.75%	1.75%	1.75%	2.75%
< 33%	1.00%	2.00%	2.00%	3.00%

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The Credit Agreement provides for a 25 basis point reduction in the applicable margin rates beginning in the quarter after our Leverage Ratio (as defined in the Credit Agreement) is less than 5.5 to 1.0. As of September 30, 2020, the interest has been determined based on a margin of 50 basis points for prime rate based revolver loans, 150 basis points for LIBOR based rate revolver loans, 150 basis points for prime rate based FILO loans and 250 basis points for LIBOR based FILO loans. The margin can fluctuate quarterly based on our average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter. Following the October 11, 2019 effective date of the First Amendment, the applicable margin rates are increased by 25 basis points for as long as the Great Falls, MT refinery assets are contributing to the borrowing base. Letters of credit issued under the revolving credit facility accrue fees at a rate equal to the margin (measured in basis points) applicable to LIBOR revolver loans.

In addition to paying interest quarterly on outstanding borrowings under the revolving credit facility, the Company is required to pay a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.250% or 0.375% per annum depending on the average daily available unused borrowing capacity for the preceding month. The Company also pays a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees.

The borrowing base under the revolving credit facility at September 30, 2020 was approximately $289.7 million. As of September 30, 2020, the Company had $100.1 million of outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $29.7 million, leaving approximately $159.9 million available for additional borrowings based on specified availability limitations. Lenders under the revolving credit facility have a first priority lien on the Company’s accounts receivable, inventory and substantially all of its cash.

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 sum of the greater of (i) 10% of the borrowing base then in effect, or 15% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), plus the amount of FILO loans outstanding, 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 September 30, 2020, the Company was in compliance with all covenants under the revolving credit facility.

Maturities of Long-Term Debt

As of September 30, 2020, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2020	$	0.6
2021	2.9
2022	150.6
2023	425.8
2024	200.8
Thereafter	551.0
Total	$	1,331.7

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9. Derivatives

The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), 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 Gain (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 current 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 assets in the Company’s condensed consolidated balance sheets (in millions):

		September 30, 2020						December 31, 2019
	Balance Sheet Location	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
Specialty products segment:
Natural gas swaps	Derivative assets	$	0.1	$	—	$	0.1	$	—	$	—	$	—
Fuel products segment:
Inventory financing obligation	Obligations under inventory financing agreements	$	1.9	$	—	$	1.9	$	—	$	—	$	—
WCS crude oil basis swaps	Derivative assets	4.3		(0.1)		4.2		—		(1.3)		(1.3)
Gasoline crack spread swaps	Derivative assets	0.8		—		0.8		1.8		(0.5)		1.3
Diesel crack spread swaps	Derivative assets	5.9		—		5.9		0.9		(0.5)		0.4
Diesel-MEH crack spread swaps	Derivative assets	1.6		—		1.6		—		—		—
2/1/1 crack spread swaps	Derivative assets	—		—		—		0.5		—		0.5
Natural gas swaps	Derivative assets	0.4		—		0.4		—		—		—
Total derivative instruments		$	15.0	$	(0.1)	$	14.9	$	3.2	$	(2.3)	$	0.9

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):

		September 30, 2020						December 31, 2019
	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:
Fuel products segment:
Inventory financing obligation	Obligations under inventory financing agreements	$	—	$	—	$	—	$	(7.2)	$	—	$	(7.2)
WCS crude oil basis swaps	Other current liabilities	(0.1)		0.1		—		(1.3)		1.3		—
Gasoline crack spread swaps	Other current liabilities	—		—		—		(0.5)		0.5		—
Diesel crack spread swaps	Other current liabilities	—		—		—		(0.5)		0.5		—
Total derivative instruments		$	(0.1)	$	0.1	$	—	$	(9.5)	$	2.3	$	(7.2)

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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 September 30, 2020, the Company had four counterparties in which the derivatives held were in net assets totaling $14.9 million. As of December 31, 2019, the Company had three counterparties in which the derivatives held were 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 September 30, 2020 or December 31, 2019. 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.

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. Any outstanding collateral is released to the Company upon settlement of the related derivative instrument liability. As of September 30, 2020 and December 31, 2019, the Company had provided no collateral to its counterparties.

The cash flow impact of the Company’s derivative activities is classified primarily as a change in derivative activity 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 Gain (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 Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into natural gas swaps, gasoline swaps, diesel swaps and certain 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 natural gas, crude oil, gasoline and diesel.

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The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the three months ended September 30, 2020 and 2019, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain on Derivative Instruments
	Three Months Ended September 30,				Three Months Ended September 30,
	2020		2019		2020		2019
Specialty products segment:
Natural gas swaps	$	0.1	$	—	$	0.3	$	—
Fuel products segment:
Inventory financing obligation	—		—		(2.5)		(5.5)
WCS crude oil basis swaps	8.3		—		(0.7)		—
WCS crude oil percentage basis swaps	—		0.1		—		(0.3)
Gasoline swaps	—		—		—		0.1
Gasoline crack spread swaps	2.6		—		(3.8)		—
2/1/1 crack spread swaps	—		—		—		0.3
Diesel crack spread swaps	5.1		0.3		(3.6)		0.2
Diesel percentage basis crack spread swaps	—		—		—		(0.2)
Diesel-MEH crack spread swaps	1.0		—		0.7		—
Natural gas swaps	—		—		0.4		—
Total	$	17.1	$	0.4	$	(9.2)	$	(5.4)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2020 and 2019, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain on Derivative Instruments
	Nine Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Specialty products segment:
Natural gas swaps	$	(0.5)	$	—	$	0.1	$	—
Midland crude oil basis swaps	—		1.6		—		(1.0)
Fuel products segment:
Inventory financing obligation	—		—		9.2		(2.7)
WCS crude oil basis swaps	12.9		17.1		5.4		(14.9)
WCS crude oil percentage basis swaps	—		1.0		—		6.0
Midland crude oil basis swaps	—		9.0		—		(7.1)
Gasoline swaps	—		—		—		0.1
Gasoline crack spread swaps	8.1		—		(0.5)		—
2/1/1 crack spread swaps	2.0		—		(0.5)		0.3
Diesel crack spread swaps	13.0		6.4		5.5		(7.2)
Diesel-MEH crack spread swaps	1.0		—		1.6		—
Diesel percentage basis crack spread swaps	—		(0.5)		—		6.3
Natural gas swaps	—		—		0.4		—
Total	$	36.5	$	34.6	$	21.2	$	(20.2)

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Derivative Positions

WCS Crude Oil Basis Swap Contracts

At September 30, 2020, the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges:

WCS Crude Oil Basis Swap Contracts by Expiration Dates	Barrels Purchased	BPD	Average Differential to NYMEX WTI ($/Bbl)
Fourth Quarter 2020 (1)	1,610,000	17,500	$	(15.02)
First Quarter 2021	900,000	10,000	$	(13.92)
Total	2,510,000
Average differential			$	(14.62)

(1) The volumes include 418,500 barrels of WCS crude oil basis purchases that settled at $(14.88)/Bbl average differential to NYMEX WTI in the quarter ended September 30, 2020.

At December 31, 2019, the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges:

WCS Crude Oil Basis Swap Contracts by Expiration Dates	Barrels Purchased	BPD	Average Differential to NYMEX WTI ($/Bbl)
First Quarter 2020	544,000	5,978	$	(18.92)
Total	544,000
Average differential			$	(18.92)

Diesel Crack Spread Swap Contracts

At September 30, 2020, the Company had the following derivatives related to diesel crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Diesel Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
Fourth Quarter 2020	368,000	4,000	$	21.91
Total	368,000
Average price			$	21.91

At December 31, 2019, the Company had the following derivatives related to diesel crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Diesel Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
First Quarter 2020	500,500	5,500	$	22.15
Second Quarter 2020	379,000	4,165	$	21.68
Third Quarter 2020	368,000	4,000	$	22.23
Fourth Quarter 2020	368,000	4,000	$	21.91
Total	1,615,500
Average price			$	22.00

Gasoline Crack Spread Swap Contracts

At September 30, 2020, the Company had the following derivatives related to gasoline crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Gasoline Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
Fourth Quarter 2020	368,000	4,000	$	9.77
Total	368,000
Average price			$	9.77

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At December 31, 2019, the Company had the following derivatives related to gasoline crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Gasoline Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
First Quarter 2020	591,500	6,500	$	12.54
Second Quarter 2020	379,000	4,165	$	16.41
Third Quarter 2020	368,000	4,000	$	15.24
Fourth Quarter 2020	368,000	4,000	$	9.77
Total	1,706,500
Average price			$	13.38

2/1/1 Crack Spread Swap Contracts

At September 30, 2020, the Company had no derivatives related to 2/1/1 crack spread swap sales in its fuel products segment.

At December 31, 2019, the Company had the following derivatives related to 2/1/1 crack spread swap sales in its fuel products segment, none of which are designated as hedges:

2/1/1 Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
First Quarter 2020	364,000	4,000	$	17.43
Second Quarter 2020	30,000	330	$	19.50
Total	394,000
Average price			$	17.58

Natural Gas Swap Contracts

At September 30, 2020, the Company had the following derivatives related to natural gas swap purchases in its specialty products segment, none of which are designated as hedges:

Natural Gas Swap Contracts by Expiration Dates	MMBtu Purchased	Average Swap ($/MMBtu)
Fourth Quarter 2020 (1)	1,518,000	$	2.25
Total	1,518,000
Average price		$	2.25

(1) These volumes include 511,500 MMBtu of natural gas swap purchases that settled at $2.12/MMBtu average swap price to NYMEX Henry Hub in the quarter ended September 30, 2020.

At December 31, 2019, the Company had no derivatives related to natural gas swap purchases in its specialty products segment.

Diesel - MEH Crack Spread Swap Contracts

At September 30, 2020, the Company had the following derivatives related to diesel - MEH crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Diesel - MEH Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
Fourth Quarter 2020	368,000	4,000	$	9.51
Total	368,000
Average price			$	9.51

At December 31, 2019, the Company had no derivatives related to diesel - MEH crack spread swap sales in its fuel products segment.

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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 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 September 30, 2020 and December 31, 2019, 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 September 30, 2020, 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.

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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 quoted prices from an independent pricing service. Please read Note 6 - “Commitments and Contingencies” for further information on the Company’s RINs Obligation.

Precious Metals Leases

The fair value of precious metals leases 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):

	September 30, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Derivative assets:
Natural gas swaps	$	—	$	—	$	0.5	$	0.5	$	—	$	—	$	—	$	—
Gasoline crack spread swaps	—		—		0.8		0.8		—		—		1.3		1.3
Inventory financing obligation	—		—		1.9		1.9		—		—		—		—
Diesel crack spread swaps	—		—		5.9		5.9		—		—		0.4		0.4
Diesel - MEH crack spread swaps	—		—		1.6		1.6		—		—		—		—
2/1/1 crack spread swaps	—		—		—		—		—		—		0.5		0.5
WCS crude oil basis swaps	—		—		4.2		4.2		—		—		(1.3)		(1.3)
Total derivative assets	$	—	$	—	$	14.9	$	14.9	$	—	$	—	$	0.9	$	0.9
Pension plan investments	32.7		—		—		32.7		32.5		—		—		32.5
Total recurring assets at fair value	$	32.7	$	—	$	14.9	$	47.6	$	32.5	$	—	$	0.9	$	33.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	—	$	—	$	—	$	—	$	(7.2)	$	(7.2)
Total derivative liabilities	—		—		—		—		—		—		(7.2)		(7.2)
RINs obligation	—		(76.1)		—		(76.1)		—		(13.0)		—		(13.0)
Precious metals leases	(5.3)		—		—		(5.3)		(5.8)		—		—		(5.8)
Liability awards	(10.1)		—		—		(10.1)		(7.4)		—		—		(7.4)
Total recurring liabilities at fair value	$	(15.4)	$	(76.1)	$	—	$	(91.5)	$	(13.2)	$	(13.0)	$	(7.2)	$	(33.4)

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):

	Nine Months Ended September 30,
	2020		2019
Fair value at January 1,	$	(6.3)	$	19.8
Realized gain on derivative instruments	(36.5)		(34.6)
Unrealized gain (loss) on derivative instruments	21.2		(20.2)
Settlements	36.5		34.6
Fair value at September 30,	$	14.9	$	(0.4)
Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	21.2	$	(20.2)

All settlements from derivative instruments not designated as hedges are recorded in Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Please read Note 9 - “Derivatives” for further information on derivative instruments.

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. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition.

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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 Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company recorded this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. The investment in FHC is recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized, the Company would classify this asset as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. For the nine months ended September 30, 2019, the Company recorded an impairment charge of $19.7 million on the investment in FHC and the categorization of the framework used to value the assets is considered Level 3. Please read Note 14 - “Investment in Unconsolidated Affiliates” for further information.

Estimated Fair Value of Financial Instruments

Cash and cash equivalents

The carrying value of cash and cash equivalents is each considered to be representative of its fair value.

Debt

The estimated fair value of long-term debt at September 30, 2020 and December 31, 2019, consists primarily of senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s 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, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. Please read Note 8 - “Long-Term Debt” for further information on long-term debt.

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

		September 30, 2020				December 31, 2019
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2022 Notes and 2023 Notes	1	$	441.6	$	471.5	$	676.4	$	668.1
2024 Secured Notes and 2025 Notes	2	$	715.7	$	740.3	$	598.8	$	540.5
Revolving credit facility	3	$	100.1	$	100.1	$	—	$	—
Finance lease and other obligations	3	$	6.6	$	6.6	$	6.5	$	6.5

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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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator for basic and diluted earnings per limited partner unit:
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Less:
General partner’s interest in net loss	(1.1)		(0.1)		(1.3)		(0.1)
Net loss available to limited partners	$	(55.0)	$	(4.5)	$	(65.6)	$	(4.9)
Denominator for basic and diluted earnings per limited partner unit:
Weighted average limited partner units outstanding (1)	78,743,083		78,299,472		78,602,651		78,174,976
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.70)	$	(0.06)	$	(0.83)	$	(0.06)

(1)Total diluted weighted average limited partner units outstanding excludes a de-minimis amount of un-vested phantom units for the three and nine months ended September 30, 2020 and excludes 0.1 million for the three and nine months ended September 30, 2019.

12. Segments and Related Information

a. 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 makers (“CODM”). The Company’s operations are managed by the CODM using the following reportable segments:

•Specialty Products. The specialty products segment produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for industrial, consumer and automotive goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications.

•Fuel Products. The fuel products segment produces primarily gasoline, diesel, jet fuel, and asphalt which are primarily sold to customers located in the PADD 3 and PADD 4 areas within the U.S.

•Corporate. The corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products or Fuel Products segments.

During the first quarter of 2020, the CODM changed the definition and calculation of Adjusted EBITDA, which is used by the Company for evaluating performance, allocating resources and managing the business. The revised definition and calculation of Adjusted EBITDA now includes LCM inventory adjustments and LIFO adjustments, (see items (g) and (h) below,) which were previously excluded. This revised definition and calculation better reflects the performance of the Company’s business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

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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 2 — “Summary of Significant Accounting Policies,” of the Company’s 2019 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 refined 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, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment.

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Reportable segment information for the three months ended September 30, 2020 and 2019, is as follows (in millions):

Three Months Ended September 30, 2020	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	281.3	$	286.7	$	—	$	—	$	568.0
Inter-segment sales	13.1		7.7		—		(20.8)		—
Total sales	$	294.4	$	294.4	$	—	$	(20.8)	$	568.0
Adjusted EBITDA	$	56.0	$	(13.5)	$	(17.1)	$	—	$	25.4
Reconciling items to net loss:
Depreciation and amortization	10.7		17.6		1.9		—		30.2
LCM / LIFO (gain) loss	(4.7)		5.8		—		—		1.1
Interest (benefit) expense	(0.1)		2.1		31.3		—		33.3
Unrealized (gain) loss on derivatives	(0.3)		9.5		—		—		9.2
Other non-recurring expenses									5.5
Equity-based compensation and other items									2.1
Income tax expense									0.1
Net loss									$	(56.1)
Three Months Ended September 30, 2019	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	355.8	$	573.8	$	—	$	—	$	929.6
Inter-segment sales	19.8		14.3		—		(34.1)		—
Total sales	$	375.6	$	588.1	$	—	$	(34.1)	$	929.6
Adjusted EBITDA	$	51.6	$	47.7	$	(23.1)	$	—	$	76.2
Reconciling items to net loss:
Depreciation and amortization	12.9		18.6		2.0		—		33.5
LCM / LIFO (gain) loss	(0.9)		3.6		—		—		2.7
(Gain) loss on impairment and disposal of assets	—		(0.4)		3.6		—		3.2
Interest expense	—		5.6		28.2		—		33.8
Unrealized loss on derivatives	—		5.4		—		—		5.4
Other non-recurring expenses									1.3
Equity-based compensation and other items									0.4
Income tax expense									0.5
Net loss									$	(4.6)

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Reportable segment information for the nine months ended September 30, 2020 and 2019, is as follows (in millions):

Nine Months Ended September 30, 2020	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	840.9	$	873.4	$	—	$	—	$	1,714.3
Inter-segment sales	41.7		20.5		—		(62.2)		—
Total sales	$	882.6	$	893.9	$	—	$	(62.2)	$	1,714.3
Adjusted EBITDA	$	176.6	$	27.6	$	(54.1)	$	—	$	150.1
Reconciling items to net loss:
Depreciation and amortization	32.6		53.2		5.7		—		91.5
LCM / LIFO loss	13.3		22.2		—		—		35.5
Loss on impairment and disposal of assets	1.5		0.1		5.1		—		6.7
Interest (benefit) expense	(0.1)		—		93.3		—		93.2
Unrealized gain on derivatives	(0.1)		(21.1)		—		—		(21.2)
Other non-recurring expenses									4.3
Equity-based compensation and other items									6.2
Income tax expense									0.8
Net loss									$	(66.9)
Nine Months Ended September 30, 2019	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,052.4	$	1,625.4	$	—	$	—	$	2,677.8
Inter-segment sales	67.0		37.7		—		(104.7)		—
Total sales	$	1,119.4	$	1,663.1	$	—	$	(104.7)	$	2,677.8
Income from unconsolidated affiliates	$	3.8	$	—	$	—	$	—	$	3.8
Adjusted EBITDA	$	165.1	$	123.8	$	(76.0)	$	—	$	212.9
Reconciling items to net loss:
Depreciation and amortization	36.6		56.8		5.7		—		99.1
LCM / LIFO gain	(6.2)		(31.7)		—		—		(37.9)
Loss on impairment and disposal of assets	—		11.4		19.7		—		31.1
Interest expense	—		12.7		86.5		—		99.2
Gain on debt extinguishment	—		—		(0.7)		—		(0.7)
Unrealized loss on derivatives	8.1		12.1		—		—		20.2
Other non-recurring expenses									1.3
Gain on sale of unconsolidated affiliate	(1.2)		—		—		—		(1.2)
Equity-based compensation and other items									6.1
Income tax expense									0.7
Net loss									$	(5.0)

b. Geographic Information

International sales accounted for less than ten percent of consolidated sales in each of the three and nine months ended September 30, 2019. International sales accounted for greater than ten percent of consolidated sales for the three months ended September 30, 2020 and less than ten percent of consolidated sales for the nine months ended September 30, 2020. Substantially all of the Company’s long-lived assets are domestically located.

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c. Product Information

The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, packaged and synthetic specialty products and other. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other. The following table sets forth the major product category sales for each of the Specialty products and Fuel products segments for the three months ended September 30, 2020 and 2019 (dollars in millions):

	Three Months Ended September 30,
	2020				2019
Specialty products:
Lubricating oils	$	122.5	21.6	%	$	156.1	16.8	%
Solvents	54.6		9.6	%	86.1		9.3	%
Waxes	33.8		5.9	%	30.1		3.2	%
Packaged and synthetic specialty products	60.9		10.7	%	59.6		6.4	%
Other	9.5		1.7	%	23.9		2.6	%
Total	$	281.3	49.5	%	$	355.8	38.3	%
Fuel products:
Gasoline	$	97.4	17.1	%	$	189.5	20.4	%
Diesel	110.9		19.5	%	225.4		24.2	%
Jet fuel	17.6		3.2	%	39.5		4.3	%
Asphalt, heavy fuel oils and other	60.8		10.7	%	119.4		12.8	%
Total	$	286.7	50.5	%	$	573.8	61.7	%
Consolidated sales	$	568.0	100.0	%	$	929.6	100.0	%

The following table sets forth the major product category sales for the nine months ended September 30, 2020 and 2019 (dollars in millions):

	Nine Months Ended September 30,
	2020				2019
Specialty products:
Lubricating oils	$	352.5	20.6	%	$	460.7	17.2	%
Solvents	179.0		10.4	%	254.2		9.5	%
Waxes	92.2		5.5	%	92.6		3.5	%
Packaged and synthetic specialty products	177.4		10.3	%	180.2		6.7	%
Other	39.8		2.3	%	64.7		2.4	%
Total	$	840.9	49.1	%	$	1,052.4	39.3	%
Fuel products:
Gasoline	$	285.7	16.7	%	$	530.9	19.8	%
Diesel	363.3		21.2	%	669.4		25.0	%
Jet fuel	53.9		3.1	%	100.8		3.8	%
Asphalt, heavy fuel oils and other	170.5		9.9	%	324.3		12.1	%
Total	$	873.4	50.9	%	$	1,625.4	60.7	%
Consolidated sales	$	1,714.3	100.0	%	$	2,677.8	100.0	%

d. Major Customers

During the three and nine months ended September 30, 2020 and 2019, the Company had no customer that represented 10% or greater of consolidated sales.

e. Major Suppliers

During the three months ended September 30, 2020 and 2019, the Company had two suppliers that supplied approximately 60.3% and 67.5%, respectively, of its crude oil supply. During the nine months ended September 30, 2020 and 2019, the Company had two suppliers that supplied approximately 56.4% and 64.6%, respectively, of its crude oil supply.

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13. Restructuring

On January 21, 2020, the Company committed to a cost reduction plan to reduce overall operating expenses, including the reduction of outside services, facility fixed costs, and corporate staffing costs (the “Cost Reduction Plan”). These cost reductions are designed to right-size general and administrative spending and are consistent with Phase II of the Company’s previously announced self-help program.

The Company eliminated 50 general and administrative, primarily corporate positions as part of the Cost Reduction Plan through the third quarter of 2020. The Company has offered one-time termination benefits to the affected employees including cash severance payments, health care, and outplacement services. The Company paid $0.9 million for these costs for the nine months ended September 30, 2020.

On February 2, 2020, the Company announced to its employees at the Bel-Ray facility in Wall Township, New Jersey, which was included in our Specialty Products segment that it would cease production and close the facility in the second quarter of 2020. Actual production at the Bel-Ray facility ceased in March 2020. This action resulted in the elimination of 49 positions. The Company expects to incur approximately $6.0 million in total exit costs, fixed asset impairments, termination benefits, and severance costs associated with the closure. The majority of these costs are expected to result in cash expenditures that will be paid out primarily in 2020.

Charges related to restructuring are reflected in the Cost of sales, Selling, and General and administrative lines of the unaudited condensed consolidated statements of operations. The Company recorded $0.7 million to Cost of sales for the three months ended September 30, 2020 and $3.8 million for the nine months ended September 30, 2020. The Company recorded $0.1 million and $1.0 million, respectively, to the Selling and General and administrative lines of the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020. Fixed asset impairments are reflected in the Loss on impairment and disposal of assets line of the unaudited condensed consolidated statements of operations.

The following table displays the reconciliation of the beginning and ending liability balances (in millions):

	Employee Termination Benefits		Exit Costs		Total
Balance at December 31, 2019	$	—	$	—	$	—
Charges to restructuring	0.8		1.3		2.1
Cash Payments and other	(0.4)		(1.1)		(1.5)
Balance at March 31, 2020	$	0.4	$	0.2	$	0.6
Charges to restructuring	0.9		1.0		1.9
Cash Payments and other	(0.8)		(0.7)		(1.5)
Balance at June 30, 2020	$	0.5	$	0.5	$	1.0
Charges to restructuring	0.3		0.5		0.8
Cash Payments and other	(0.6)		(0.7)		(1.3)
Balance at September 30, 2020	$	0.2	$	0.3	$	0.5

14. Investment in Unconsolidated Affiliates

Biosyn Holdings, LLC and Biosynthetic Technologies

In February 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC (“Biosyn”) for the purpose of acquiring Biosynthetic Technologies, LLC (“Biosynthetic Technologies”), a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. In March 2019, the Company sold its investment in Biosyn to The Heritage Group, a related party, for total proceeds of $5.0 million which was recorded in the “other” component of other income (expense) on the unaudited condensed consolidated statement of operations. Prior to the sale of Biosyn, the Company accounted for its ownership in Biosyn under the equity method of accounting.

Fluid Holding Corp.

In connection with the Anchor Transaction completed in November of 2017, the Company received a 10% investment in FHC as part of the total consideration for Anchor. FHC provides oilfield services and products to customers globally. The Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company recorded this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer.

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During the second quarter of 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $25.4 million after evaluating indicators of impairment and valuing the investment using projected future cash flows and other Level 3 inputs. Utilizing an income approach, value indicators 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 company. As a result, the Company recorded an impairment charge of $16.1 million, which is included in Loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019.

During the third quarter of 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $9.3 million, as a result of a preferred stock issuance by FHC, which diluted the Company’s ownership percentage. As a result, the Company recorded an impairment charge of $3.6 million in Loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2019 and a $19.7 million impairment charge for the nine months ended September 30, 2019. During the second quarter of 2020, FHC became the subject of receivership in Canada.

15. Subsequent Events

As of November 1, 2020, the fair value of the Company’s derivatives have increased by approximately $5.3 million subsequent to September 30, 2020.

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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 nine months ended September 30, 2020 and 2019. Unitholders should read the following discussion and analysis of our financial condition and results of operations in conjunction with our 2019 Annual Report and our historical unaudited condensed consolidated financial statements and notes included elsewhere in this Quarterly Report.

Overview

We are a leading independent producer of high-quality, specialty hydrocarbon products in North America. We are headquartered in Indianapolis, Indiana, and own specialty and fuel products facilities primarily located in northwest Louisiana, northern Montana, western Pennsylvania, Texas, and eastern Missouri. We own and lease additional facilities, primarily related to production and distribution of specialty and fuel products, throughout the United States (“U.S.”). Our business is organized into three segments: our core specialty products segment, fuel products segment and corporate segment. In our specialty products segment, we process crude oil and other feedstocks into a wide variety of customized lubricating oils, solvents, waxes, synthetic lubricants, and other products. Our specialty products are sold to domestic and international customers who purchase them primarily as raw material components for basic industrial, consumer and automotive goods. We also blend and market specialty products through our Royal Purple, Bel-Ray, and TruFuel brands. In our fuel products segment, we process crude oil into a variety of fuels and fuel-related products, including gasoline, diesel, jet fuel, asphalt and other products, and from time to time resell purchased crude oil to third-party customers. Our corporate segment primarily consists of general and administrative expenses not allocated to the specialty products segment or fuel products segment. Please read Note 12 - “Segments and Related Information” for further information.

Third Quarter 2020 Update

Outlook and Trends

The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, reduced global demand for oil, gas and derived hydrocarbon products, creating significant volatility and disruption of financial and commodity markets. In additon to the impacts from COVID-19, dramatic fluctuations in international oil production contributed to a sharp drop in prices for crude oil and refined products in the first and second quarters of 2020. As local state governments began to lift COVID-19 related restrictions and global crude supply was reduced, average NYMEX WTI prices increased 46.1% in the third quarter of 2020, as compared to the second quarter of 2020. We expect the adverse impact from COVID-19 to continue to remain a factor during the fourth quarter of 2020. Below are factors that have impacted or may impact our results of operations during 2020:

•Reduction in demand for our fuels products as the domestic and global economies are adversely affected by the economic effects of the global pandemic and the significant governmental measures being implemented to control the spread of the virus.

•Reduction in demand for certain specialty products as a variety of customers and industries are adversely affected by the COVID-19 pandemic. Our broad range of applications and diversification of end-use markets has allowed our specialty products business to maintain margin despite the pandemic.

•Availability and pricing of crude oil and other feedstocks as producers and sellers of those products are adversely affected by the global pandemic and the global oversupply of crude oil.

•In the third quarter of 2020, Canadian heavy sour crude was relatively unconstrained by pipelines as compared to the second half of 2019, leading to lower discounts to NYMEX WTI. Processing crude oils based on Western Canadian Select (“WCS”) and other cost-advantaged crudes continue to be an advantage.

•We continue to focus on improving operations. Our total feedstock runs were 81,813 barrels per day (“bpd”) during the third quarter 2020, compared to 110,447 bpd during the third quarter 2019. This decrease is primarily attributed to the divestment of the San Antonio refinery with a capacity of 21,000 bpd and the termination of third-party naphthenic lubricating oils production in the fourth quarter of 2019. We intend to improve utilization rates by minimizing unplanned downtime at our facilities, while optimizing the volume and margin balance.

•Our Specialty product margins have remained relatively stable but certain of our end markets are susceptible to changes in Gross Domestic Product. Over the long term, we continue to consider our specialty products segment our core business and subject to economic conditions and available liquidity, we plan to seek appropriate ways to further invest in our specialty products segment.

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•It is not possible to predict what future RINs costs may be given the volatile price of RINs but we continue to anticipate that RINs have the potential to remain a significant expense for our fuel products segment (exclusive of the favorable impact of exemptions received). The approximate 16% increase in the price of RINs during the third quarter 2020 unfavorably affected our results of operations.

•We continue to evaluate opportunities to divest non-core businesses and assets in line with our strategy of de-leveraging and streamlining our business to better focus on the advancement of our core business. In addition, we may also consider the disposition of certain core assets or businesses, to the extent such a transaction would improve our capital structure or otherwise be accretive to the Company. There can be no assurance as to the timing or success of any such potential transaction, or any other transaction, or that we will be able to sell such assets or businesses on satisfactory terms, if at all. In addition, as economic conditions improve, we may seek acquisitions of assets that management believes will be financially accretive and consistent with our strategic goals.

We developed and executed a plan to manage health and safety risks and business continuity to protect our workforce and business during the COVID-19 pandemic. Comprehensive guidelines and requirements for the return to work of personnel to their locations have been implemented. To reinforce cost control and preserve cash, we are reducing our fixed and variable costs associated with cost of sales, restructuring our organization to match activity where necessary, and reducing our planned capital investment program by more than 30%, with our focus on our replacement, maintenance and turnaround projects. 

Key Matters, Claims and Legal Proceedings

On October 31, 2018, the Company received an indemnity claim notice (the “Claim Notice”) from Husky Superior Refining Holding Corp. (“Husky”) under the Membership Interest Purchase Agreement, dated August 11, 2017 (the “MIPA”), which was entered into in connection with the disposition of the Superior Refinery. The Claim Notice relates to alleged losses Husky incurred in connection with a fire at the Husky Superior refinery on April 26, 2018, over five months after Calumet sold Husky 100% of the membership interests in the entity that owns the Husky Superior refinery. Calumet understands the fire occurred during a turnaround of the Husky Superior refinery at a time when Husky owned, operated, and supervised the refinery. Calumet was not involved with the turnaround. The U.S. Chemical Safety and Hazard Investigation Board (“CSB”) is currently investigating the fire. The CSB has not suggested that Calumet is responsible for the fire. Husky’s Claim Notice alleges that Husky “has become aware of facts which may give rise to losses” for which it reserved the right to seek indemnification at a later date. The Claim Notice further alleges breaches of certain representations, warranties, and covenants contained in the MIPA. We believe that the information currently available about the fire and the CSB investigation does not support Husky’s threatened claims, and Husky has not filed a lawsuit against Calumet. If Husky were to seek recourse under the MIPA for such claims, they would be subject to certain limits on indemnification liability that may reduce or eliminate any potential indemnification liability.

Beginning in 2017, the Company initiated the first of several claims in Cascade County Circuit Court against the Montana Department of Revenue to recover overpaid taxes resulting from the county’s excessive property tax assessment of the Company’s Great Falls refinery for the 2017, 2018, and 2019 tax years. As of September 30, 2020, the county has refunded, as the result of various court decisions, $6.0 million in excessive taxes and interest to the Company. The claims arising from the 2017, 2018, and 2019 tax years are closed. The $6.0 million was recorded as a reduction of taxes other than income taxes for the nine month period ended September 30, 2020.

Financial Results

We reported a net loss of $56.1 million in the third quarter 2020, versus a net loss of $4.6 million in the third quarter 2019. We reported Adjusted EBITDA (as changed during the period ended March 31, 2020 and defined in Note 12 - “Segments and Related Information” under Part I, Item 1 “Financial Statements - Notes to Unaudited Condensed Consolidated Financial Statements”) of $25.4 million in the third quarter 2020, versus $76.2 million in the third quarter 2019. We generated cash from operating activities of $65.6 million through the third quarter 2020, driven by decreases in the cash required from the changes in assets and liabilities, partially offset by lower gross profit when excluding the effects of lower of cost or market (“LCM”) adjustments. The Company generated cash from operating activities operations of $153.9 million through the third quarter 2019.

Please read “— Non-GAAP Financial Measures” for a reconciliation of EBITDA, Adjusted EBITDA and Distributable Cash Flow to Net loss, our most directly comparable financial performance measure calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

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Commodity markets continued to be volatile in the third quarter 2020, contributing to fluctuations in refined product margins. The average price of NYMEX WTI crude oil decreased by approximately 27.5% in the third quarter 2020, when compared to the same period in 2019, although the average price of NYMEX WTI crude oil increased approximately 46.1% from June 30, 2020 to September 30, 2020. In the third quarter 2020, the average price differential per barrel between WCS crude oil and NYMEX WTI averaged $10 per barrel below NYMEX WTI, versus $13 per barrel below NYMEX WTI in the third quarter 2019. In the third quarter 2020, we processed approximately 25,500 bpd of heavy Canadian crude oil, versus 25,600 bpd in the third quarter 2019.

Specialty products segment Adjusted EBITDA was $56.0 million in the third quarter 2020, versus $51.6 million in the third quarter 2019. Relative to third quarter 2019, Specialty products third quarter 2020 segment Adjusted EBITDA was impacted by softer demand due to the COVID-19 pandemic, but the impact was largely offset from stronger margins in both the specialty oils & waxes business and the finished lubricants & chemicals business. Continued focus on cost improvements in fixed operating, transportation and SG&A contributed to the year over year improvement. The average price of NYMEX WTI improved over the quarter and the spot price increased slightly, leading to margin compression for the base oils business. Third quarter 2020 results were impacted by a $4.7 million favorable LCM inventory adjustment compared to a $0.9 million favorable LCM inventory adjustment in the third quarter 2019.

Fuel products segment Adjusted EBITDA was negative $13.5 million during the third quarter 2020, versus $47.7 million in the third quarter 2019, driven by decreased sales volumes, weaker U.S. Gulf Coast 3/2/1 crack spreads (“Gulf Coast crack spread”) and a tightening in the average pricing discount between WCS and NYMEX WTI of $3 when compared to the third quarter 2019. Third quarter 2020 results were impacted by a $5.8 million unfavorable LCM inventory adjustment compared to a $3.6 million unfavorable LCM inventory adjustment in the third quarter 2019.

Corporate segment Adjusted EBITDA was negative $17.1 million in the third quarter 2020 versus negative $23.1 million in the third quarter 2019, due primarily to cost reductions in outside services and corporate staffing.

For benchmarking purposes, we compare our per barrel refined fuel products margin to the Gulf Coast crack spread. The Gulf Coast crack spread represents the approximate gross margin per barrel that results from processing three barrels of crude oil into two barrels of gasoline and one barrel of distillate fuel. The Gulf Coast crack spread is calculated using the near-month futures price of NYMEX WTI crude oil, the price of U.S. Gulf Coast Pipeline 87 Octane Conventional Gasoline and the price of U.S. Gulf Coast Pipeline Ultra-Low Sulfur Diesel (“ULSD”). During the third quarter 2020, the Gulf Coast crack spread averaged approximately $8 per barrel compared to approximately $19 per barrel in the same period in 2019, an approximate 56.4% decrease. The Gulf Coast ULSD crack spread averaged approximately $8 per barrel during the third quarter 2020 and approximately $21 per barrel in the third quarter 2019. The Gulf Coast gasoline crack spread averaged approximately $8 per barrel during the third quarter 2020, compared to approximately $16 per barrel in the same period in 2019.

Acquisitions

On March 2, 2020, we acquired a 100% ownership interest in Paralogics, LLC, a producer of candle and industrial wax blends, using cash on hand. This investment expanded Calumet’s presence in the specialty wax blending and packaging market while adding new capabilities into Calumet's existing wax business value chain, adding approximately 20 million pounds of annual blending and formulating capabilities.

Liquidity Update

As of September 30, 2020, we had total liquidity of $269.3 million comprised of $109.4 million of cash and availability under our revolving credit facility of $159.9 million. As of September 30, 2020, we had a $289.7 million borrowing base, $29.7 million in outstanding standby letters of credit and $100.1 million of outstanding borrowings under the revolving credit facility. In April 2020, we received $31.4 million in Paycheck Protection Program Loans under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which we subsequently repaid. 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. Please read “- Liquidity and Capital Resources” and Part II, Item 1A. “Risk Factors” for additional information.

Renewable Fuel Standard Update

Along with the broader refining industry, we remain subject to compliance costs under the Renewable Fuel Standard (“RFS”). Under the regulation of the EPA, the RFS provides annual requirements for the total volume of renewable fuels which 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.

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During the third quarter 2020, we recognized a RINs expense of $16.0 million, compared to a RINs gain of $11.0 million, for the third quarter 2019. For the full-year 2020, we anticipate our gross RINs Obligation will be approximately 76.4 million RINs spread across four compliance categories (D3, D4, D5 and D6). Estimated RINs Obligations remain subject to fluctuations in fuels production volumes during the full-year 2020. The gross RINs Obligations exclude our own renewables blending as well as the potential for any subsequent hardship waivers.

In August 2019, the EPA granted the Company’s fuel products refineries a “small refinery exemption” under the RFS for the compliance year 2018, as provided for under the federal Clean Air Act, as amended. In granting those exemptions, the EPA, in consultation with the Department of Energy, determined that for the compliance year 2018, compliance with the RFS would represent a “disproportionate economic hardship” for these small refineries. The RINs exemption resulted in a decrease in the RINs Obligation and was recorded as a reduction to cost of sales in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2019.

We continue to anticipate that expenses related to RFS compliance have the potential to remain a significant expense for our fuel products segment. 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.

Key Performance Measures

Our sales and net loss are principally affected by the price of crude oil, demand for specialty products and fuel products, prevailing crack spreads for fuel products, the price of natural gas used as fuel in our operations and our results from derivative instrument activities.

Our primary raw materials are crude oil and other specialty feedstocks, and our primary outputs are specialty petroleum 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 so that we can meet our debt service and capital expenditure requirements despite fluctuations in crude oil and fuel products prices. 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 Part I, Item 3 “Quantitative and Qualitative Disclosures About Market Risk — Commodity Price Risk” and Note 9 — “Derivatives” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements.”

Our management uses several financial and operational measurements to analyze our performance. These measurements include the following:

•sales volumes;

•segment gross profit;

•segment Adjusted EBITDA; and

•selling, general and administrative expenses.

Sales volumes. We view the volumes of specialty products and fuel 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 crude oil and 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 fuel products gross profit (loss) are important measures of our ability to maximize the profitability of our specialty products and fuel products segments. We define gross profit as sales less the cost of crude oil and other feedstocks and other production-related expenses, the most significant portion of which includes labor, plant fuel, utilities, contract services, maintenance, depreciation and processing materials. We use gross profit as an indicator of our ability to manage our business during periods of crude oil and natural gas price fluctuations, as the prices of our specialty products and fuel products generally do not change immediately with changes in the price of crude oil and natural gas. The increase or decrease in selling prices typically lags behind the rising or falling costs, respectively, of crude oil feedstocks for specialty products. Other than plant fuel, production-related expenses generally remain stable across broad ranges of specialty products and fuel products throughput volumes but can fluctuate depending on maintenance activities performed during a specific period.

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Our fuel products segment gross profit (loss) per barrel may differ from standard U.S. Gulf Coast, PADD 4 Billings, Montana or 3/2/1 and 2/1/1 market crack spreads due to many factors, including our fuel products mix as shown in our production table being different than the ratios used to calculate such market crack spreads, LCM and LIFO inventory adjustments reflected in gross profit, operating costs including fixed costs, actual crude oil costs differing from market indices and our local market pricing differentials for fuel products in the Shreveport, Louisiana and Great Falls, Montana vicinities as compared to U.S. Gulf Coast and PADD 4 Billings, Montana postings.

Segment Adjusted EBITDA. We believe that specialty products and fuel products 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 distributions to our unitholders and pay interest to our noteholders as Adjusted EBITDA is a component in the calculation of Distributable Cash Flow and 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. The corporate segment Adjusted EBITDA primarily reflects general and administrative costs not related to our core cash operating activities.

Results of Operations for the Three and Nine Months Ended September 30, 2020 and 2019

Production Volume. The following table sets forth information about our combined operations. Facility production volume differs from sales volume due to changes in inventories and the sale of purchased fuel product blendstocks such as ethanol and biodiesel and the resale of crude oil in our fuel products segment.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020	2019	% Change		2020	2019	% Change
	(In bpd)				(In bpd)
Total sales volume (1)	85,529	111,022	(23.0)	%	88,429	107,670	(17.9)	%
Total feedstock runs (2)	81,813	110,447	(25.9)	%	85,282	106,784	(20.1)	%
Facility production: (3)
Specialty products:
Lubricating oils	10,634	11,937	(10.9)	%	9,839	11,872	(17.1)	%
Solvents	6,323	7,493	(15.6)	%	6,500	7,580	(14.2)	%
Waxes	1,199	1,440	(16.7)	%	1,253	1,416	(11.5)	%
Packaged and synthetic specialty products (4)	1,458	1,384	5.3	%	1,407	1,667	(15.6)	%
Other	790	2,037	(61.2)	%	1,747	1,626	7.4	%
Total	20,404	24,291	(16.0)	%	20,746	24,161	(14.1)	%
Fuel products:
Gasoline	17,017	23,603	(27.9)	%	18,181	23,816	(23.7)	%
Diesel	23,499	30,479	(22.9)	%	25,161	29,729	(15.4)	%
Jet fuel	4,301	5,213	(17.5)	%	3,673	4,462	(17.7)	%
Asphalt, heavy fuels and other	13,540	22,248	(39.1)	%	14,520	21,031	(31.0)	%
Total	58,357	81,543	(28.4)	%	61,535	79,038	(22.1)	%
Total facility production (3)	78,761	105,834	(25.6)	%	82,281	103,199	(20.3)	%

(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 fuel product blendstocks, such as ethanol and biodiesel, as components of finished fuel products in our fuel products segment sales.

The decrease in total sales volume for the three and nine months ended September 30, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery, the terminated third-party naphthenic lubricating oil production arrangement, and softened demand due to the COVID-19 pandemic.

(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.

The decrease in total feedstock runs for the three and nine months ended September 30, 2020, as compared to the same periods in 2019, is due primarily to the sale of the San Antonio refinery, the terminated third-party naphthenic lubricating oil production arrangement, and softened demanded due to the COVID-19 pandemic.

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(3)Total facility production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other feedstocks at our facilities and at certain third-party facilities pursuant to supply and/or processing agreements. 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.

The change in total facility production for the three and nine months ended September 30, 2020, as compared to the same period in 2019, is due primarily to the items discussed above.

(4)Represents production of finished lubricants and chemicals specialty products including the products from the Royal Purple, Bel-Ray and Calumet Packaging facilities.

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 loss and Net cash provided by operating activities, our most directly comparable financial performance and liquidity measures calculated and presented in accordance with GAAP, please read “— Non-GAAP Financial Measures.”

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Sales	$	568.0	$	929.6	$	1,714.3	$	2,677.8
Cost of sales	523.4		811.8		1,526.1		2,316.9
Gross profit	44.6		117.8		188.2		360.9
Operating costs and expenses:
Selling	11.2		12.6		37.1		40.2
General and administrative	29.7		32.8		76.7		105.5
Transportation	28.1		28.4		83.7		95.9
Taxes other than income taxes	3.9		5.7		6.2		15.5
Loss on impairment and disposal of assets	—		3.2		6.7		31.1
Other operating expense	2.5		1.7		9.7		0.8
Operating income (loss)	(30.8)		33.4		(31.9)		71.9
Other income (expense):
Interest expense	(33.3)		(33.8)		(93.2)		(99.2)
Gain on debt extinguishment	—		—		—		0.7
Gain (loss) on derivative instruments	7.9		(5.0)		57.7		14.4
Other	0.2		1.3		1.3		7.9
Total other expense	(25.2)		(37.5)		(34.2)		(76.2)
Net loss before income taxes	(56.0)		(4.1)		(66.1)		(4.3)
Income tax expense	0.1		0.5		0.8		0.7
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
EBITDA	$	3.5	$	57.1	$	105.9	$	177.5
Adjusted EBITDA	$	25.4	$	76.2	$	150.1	$	212.9
Distributable Cash Flow	$	(15.2)	$	19.5	$	23.6	$	70.3

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 loss, our most directly comparable financial performance measure. We also provide a reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by operating activities, our most directly comparable liquidity measure. Both Net loss and Net cash provided by operating activities are calculated and presented in accordance with GAAP.

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;

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•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 costs and distributions. 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 loss plus interest expense (including amortization of debt issuance costs), income taxes and depreciation and amortization.

During the first quarter of 2020, the CODM changed the definition and calculation of Adjusted EBITDA, which we use for evaluating performance, allocating resources and managing the business. The revised definition and calculation of Adjusted EBITDA now includes LCM inventory adjustments and LIFO adjustments, see items (g) and (h) below, which were previously excluded. This revised definition and calculation better reflects the performance of our Company’s business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

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, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) 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).

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 Part I, Item 2 “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Debt and Credit Facilities” for additional details regarding the covenants governing our debt instruments.

EBITDA, Adjusted EBITDA and Distributable Cash Flow should not be considered alternatives to Net loss, Operating income (loss), Net cash provided by operating activities 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 obligations 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.

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The following tables present a reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow; Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by operating activities; and Segment Adjusted EBITDA to EBITDA and Net loss our most directly comparable GAAP financial performance and liquidity measures, for each of the periods indicated.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Reconciliation of Net loss to EBITDA, Adjusted EBITDA and Distributable Cash Flow:
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Add:
Interest expense	33.3		33.8		93.2		99.2
Depreciation and amortization	26.2		27.4		78.8		82.6
Income tax expense	0.1		0.5		0.8		0.7
EBITDA	$	3.5	$	57.1	$	105.9	$	177.5
Add:
LCM / LIFO (gain) loss	$	1.1	$	2.7	$	35.5	$	(37.9)
Unrealized (gain) loss on derivative instruments	9.2		5.4		(21.2)		20.2
Amortization of turnaround costs	4.0		6.1		12.7		16.5
Gain from debt extinguishment	—		—		—		(0.7)
Loss on impairment and disposal of assets	—		3.2		6.7		31.1
Gain on sale of unconsolidated affiliate	—		—		—		(1.2)
Equity-based compensation and other items	2.1		0.4		6.2		6.1
Other non-recurring expenses	5.5		1.3		4.3		1.3
Adjusted EBITDA	$	25.4	$	76.2	$	150.1	$	212.9
Less:
Replacement and environmental capital expenditures (1)	$	5.3	$	13.4	$	17.6	$	27.0
Cash interest expense (2)	31.6		32.4		88.4		94.3
Turnaround costs	3.6		10.4		19.7		16.8
Gain from unconsolidated affiliates	—		—		—		3.8
Income tax expense	0.1		0.5		0.8		0.7
Distributable Cash Flow	$	(15.2)	$	19.5	$	23.6	$	70.3

46

	Nine Months Ended September 30,
	2020		2019
	(In millions)
Reconciliation of Distributable Cash Flow, Adjusted EBITDA and EBITDA to Net cash provided by operating activities:
Distributable Cash Flow	$	23.6	$	70.3
Add:
Replacement and environmental capital expenditures (1)	17.6		27.0
Cash interest expense (2)	88.4		94.3
Turnaround costs	19.7		16.8
Gain from unconsolidated affiliates	—		3.8
Income tax expense	0.8		0.7
Adjusted EBITDA	$	150.1	$	212.9
Less:
LCM / LIFO (gain) loss	$	35.5	$	(37.9)
Unrealized (gain) loss on derivative instruments	(21.2)		20.2
Amortization of turnaround costs	12.7		16.5
Gain on debt extinguishment	—		(0.7)
Loss on impairment and disposal of assets	6.7		31.1
Gain on sale of unconsolidated affiliate	—		(1.2)
Equity-based compensation and other items	6.2		6.1
Other non-recurring expenses	4.3		1.3
EBITDA	$	105.9	$	177.5
Add:
Unrealized (gain) loss on derivative instruments	$	(21.2)	$	20.2
Cash interest expense (2)	(88.4)		(94.3)
Other non-recurring expenses	4.3		—
Equity-based compensation	2.5		4.9
Lower of cost or market inventory adjustment	35.3		(38.8)
Gain from unconsolidated affiliates	—		(3.8)
Gain on sale of unconsolidated affiliate	—		(1.2)
Amortization of turnaround costs	12.7		16.5
Gain on debt extinguishment	—		(0.7)
Operating lease expense	45.0		57.1
Operating lease payments	(45.0)		(57.1)
Loss on impairment and disposal of assets	6.7		31.1
Income tax expense	(0.8)		(0.7)
Changes in assets and liabilities:
Accounts receivable	10.7		(49.8)
Inventories	26.6		29.6
Other current assets	1.3		4.6
Derivative activity	(0.3)		(0.4)
Turnaround costs	(19.7)		(16.8)
Accounts payable	(55.5)		61.7
Accrued interest payable	12.7		10.8
Other liabilities	36.3		5.5
Other	(3.5)		(2.0)
Net cash provided by operating activities	$	65.6	$	153.9

47

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Reconciliation of Adjusted EBITDA to EBITDA and Net loss:
Segment Adjusted EBITDA
Specialty products Adjusted EBITDA	$	56.0	$	51.6	$	176.6	$	165.1
Fuel products Adjusted EBITDA	(13.5)		47.7		27.6		123.8
Corporate Adjusted EBITDA	(17.1)		(23.1)		(54.1)		(76.0)
Total Adjusted EBITDA	$	25.4	$	76.2	$	150.1	$	212.9
Less:
LCM / LIFO (gain) loss	$	1.1	$	2.7	$	35.5	$	(37.9)
Unrealized (gain) loss on derivative instruments	9.2		5.4		(21.2)		20.2
Amortization of turnaround costs	4.0		6.1		12.7		16.5
Gain on debt extinguishment	—		—		—		(0.7)
Gain on sale of unconsolidated affiliate	—		—		—		(1.2)
Loss on impairment and disposal of assets	—		3.2		6.7		31.1
Equity-based compensation and other items	2.1		0.4		6.2		6.1
Other non-recurring expenses	5.5		1.3		4.3		1.3
EBITDA	$	3.5	$	57.1	$	105.9	$	177.5
Less:
Interest expense	$	33.3	$	33.8	$	93.2	$	99.2
Depreciation and amortization	26.2		27.4		78.8		82.6
Income tax expense	0.1		0.5		0.8		0.7
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)

(1)Replacement capital expenditures are defined as those capital expenditures which do not increase operating capacity or reduce operating costs and exclude environmental capital expenditures and 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.

48

Changes in Results of Operations for the Three Months Ended September 30, 2020 and 2019

Sales. Sales decreased $361.6 million, or 38.9%, to $568.0 million in the three months ended September 30, 2020, from $929.6 million in the same period in 2019. Sales for each of our principal product categories in these periods were as follows:

	Three Months Ended September 30,
	2020		2019		% Change
	(Dollars in millions, except barrel and per barrel data)
Sales by segment:
Specialty products:
Lubricating oils	$	122.5	$	156.1	(21.5)	%
Solvents	54.6		86.1		(36.6)	%
Waxes	33.8		30.1		12.3	%
Packaged and synthetic specialty products (1)	60.9		59.6		2.2	%
Other (2)	9.5		23.9		(60.3)	%
Total specialty products	$	281.3	$	355.8	(20.9)	%
Total specialty products sales volume (in barrels)	2,135,000		2,359,000		(9.5)	%
Average specialty products sales price per barrel	$	131.76	$	150.83	(12.6)
Fuel products:
Gasoline	$	97.4	$	189.5	(48.6)	%
Diesel	110.9		225.4		(50.8)	%
Jet fuel	17.6		39.5		(55.4)	%
Asphalt, heavy fuel oils and other (3)	60.8		119.4		(49.1)	%
Total fuel products	$	286.7	$	573.8	(50.0)	%
Total fuel products sales volume (in barrels)	5,734,000		7,855,000		(27.0)	%
Average fuel products sales price per barrel	$	50.00	$	73.05	(31.6)
Total sales	$	568.0	$	929.6	(38.9)	%
Total specialty and fuel products sales volume (in barrels)	7,869,000		10,214,000		(23.0)	%

(1)Represents packaged and synthetic specialty products at the Royal Purple, Bel-Ray and Calumet Packaging facilities.

(2)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 and (b) polyolester synthetic lubricants produced at the Missouri facility.

(3)Represents asphalt, heavy fuel oils and other products produced in connection with the production of fuels at the Shreveport, San Antonio and Great Falls refineries and crude oil sales from the San Antonio refinery to third-party customers.

The components of the $74.5 million decrease in specialty products segment sales for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Volume	$	(33.8)
Sales price	(40.7)
Total specialty products segment sales decrease	$	(74.5)

Specialty products segment sales decreased $74.5 million period over period, or 20.9%, primarily due to a $33.8 million decrease in sales volume and a $40.7 million decrease in sales prices as a result of weak market conditions. The decrease in sales volumes was a result of softened demand due to the COVID-19 pandemic, unplanned downtime at multiple facilities in the third quarter of 2020 due to Hurricane Laura, and the termination of a third-party naphthenic lubricating oil production arrangement.

49

The components of the $287.1 million decrease in fuel products segment sales for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Divestiture Impact	$	(126.3)
Volume	(25.6)
Sales price	(135.2)
Total fuel products segment sales decrease	$	(287.1)

Fuel products segment sales decreased $287.1 million period over period, or 50.0%, primarily due to a $135.2 million decrease in sales prices as a result of weak market conditions and the absence of $126.3 million of sales from the divestment of the San Antonio refinery in the fourth quarter of 2019. Also, there was a negative impact to gross profit due to lower sales volumes at our Shreveport refinery, which was the result of a shut-down at the plant in the third quarter of 2020 due to Hurricane Laura.

Gross Profit. Gross profit decreased $73.2 million, or 62.1%, to $44.6 million in the three months ended September 30, 2020, from $117.8 million in the same period in 2019. Gross profit for our specialty and fuel products segments were as follows:

	Three Months Ended September 30,
	2020			2019			% Change
	(Dollars in millions, except per barrel data)
Gross profit by segment:
Specialty products:
Gross profit	$	86.5		$	80.7		7.2	%
Percentage of sales	30.8		%	22.7		%
Specialty products gross profit per barrel	$	40.52		$	34.21		18.4	%
Fuel products:
Gross profit (loss)	$	(41.9)		$	37.1		(212.9)	%
Percentage of sales	(14.6)		%	6.5		%
Fuel products gross profit (loss) per barrel	$	(7.31)		$	4.72		(254.7)	%
Total gross profit	$	44.6		$	117.8		(62.1)	%
Percentage of sales	7.9		%	12.7		%

The components of the $5.8 million increase in specialty products segment gross profit for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Three months ended September 30, 2019 reported gross profit	$	80.7
Cost of materials	49.5
Operating costs	5.7
LCM / LIFO inventory adjustments	3.8
Volumes	(12.5)
Sales price	(40.7)
Three months ended September 30, 2020 reported gross profit	$	86.5

The increase in specialty products segment gross profit of $5.8 million for the three months ended September 30, 2020, as compared to the same period in 2019, was primarily due to the net impact of lower cost of materials and sales price, which increased gross profit by $8.8 million, as well as a reduction in operating costs of $5.7 million and a favorable change in non-cash LCM charges of $3.8 million in the current quarter in comparison to the prior year comparative period. The net impact of lower cost of materials, due to relatively low crude costs, and sales price was partially offset by an unfavorable impact of $12.5 million for lower sales volumes, which was primarily due to softened demand and the termination of the third-party naphthenic lubricating oils production arrangement.

50

The components of the $79.0 million decrease in fuel products segment gross profit (loss) for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Three months ended September 30, 2019 reported gross profit	$	37.1
Cost of materials	90.3
LCM / LIFO inventory adjustments	(3.1)
Volumes	(4.8)
Operating costs	1.9
Divestitures	(2.0)
RINs expense	(26.1)
Sales price	(135.2)
Three months ended September 30, 2020 reported gross profit (loss)	$	(41.9)

The decrease in fuel products segment gross profit (loss) of $79.0 million for the three months ended September 30, 2020, as compared to the same period in 2019, was primarily due to the net impact of lower cost of materials and sales price, which negatively impacted gross profit (loss) by $44.9 million and an increase in RINs expense of $26.1 million, which was the result of the benefit we recorded to cost of sales for the small refinery exemption we received in the third quarter of 2019, absent the third quarter of 2020. The unfavorable changes in gross profit (loss) between the comparative periods were partially offset by a favorable reduction in operating expenses of $1.9 million.

Selling. Selling expenses of $11.2 million in the three months ended September 30, 2020 decreased $1.4 million in comparison to the prior year comparative period. The decrease was due to a $1.0 million decrease in travel and entertainment, a $1.2 million decrease in labor and benefits, and a $0.7 million decrease in depreciation and amortization expense. These decreases were partially offset by a $0.7 million increase in sales commission expenses and a $0.7 million increase in bad debt expense.

General and administrative. General and administrative expenses decreased $3.1 million, or 9.5%, to $29.7 million in the three months ended September 30, 2020, from $32.8 million in the same period in 2019. The decrease was primarily due to a $6.1 million reduction of professional fees, a decrease of $2.4 million in labor and benefits, and a $0.6 million decrease in travel and entertainment. The decreases were partially offset by a $2.1 million increase in equity based compensation related expenses and a $0.7 million increase in insurance expenses.

Transportation. Transportation expenses decreased $0.3 million, or 1.1%, to $28.1 million in the three months ended September 30, 2020, from $28.4 million in the same period in 2019, as outbound freight expenses decreased with sales volumes.

Loss on impairment and disposal of assets. For the three months ended September 30, 2019, Loss on impairment and disposal of assets consisted mostly of $3.6 million in impairment charges for the Company’s investment in Fluid Holding Corp. (“FHC”), which was offset by net gains on other various asset disposals during the period. There was no Loss on impairment and disposal of assets for the three months ended September 30, 2020.

Interest expense. Interest expense decreased $0.5 million, or 1.5%, to $33.3 million in the three months ended September 30, 2020, from $33.8 million in the same period in 2019, due to lower interest payments we made for financing costs related to our Supply and Offtake Agreements in the current quarter in comparison to the prior year comparative period, which was partially offset by the interest we paid at an effective rate of 11.3% on the principal balance outstanding on our 2025 Notes in the third quarter of 2020, in comparison to the interest we paid at an effective rate of 6.8% on the principal balance outstanding on our 2021 Notes in the third quarter of 2019.

Gain (loss) on derivative instruments. There was a $7.9 million gain on derivative instruments in the three months ended September 30, 2020, compared to a $5.0 million loss in the same period in 2019. The increase in gain on derivative instruments was largely driven by WCS crude oil basis swaps (both realized and unrealized) that locked in WCS/WTI differentials greater than the average market differential during the quarter; whereas, there were no WCS crude oil basis swaps outstanding as of the end of the third quarter of 2019.

51

Changes in Results of Operations for the Nine Months Ended September 30, 2020 and 2019

Sales. Sales decreased $963.5 million, or 36.0%, to $1,714.3 million in the nine months ended September 30, 2020, from $2,677.8 million in the same period in 2019. Sales for each of our principal product categories in these periods were as follows:

	Nine Months Ended September 30,
	2020		2019		% Change
	(Dollars in millions, except barrel and per barrel data)
Sales by segment:
Specialty products:
Lubricating oils	$	352.5	$	460.7	(23.5)	%
Solvents	179.0		254.2		(29.6)	%
Waxes	92.2		92.6		(0.4)	%
Packaged and synthetic specialty products (1)	177.4		180.2		(1.6)	%
Other (2)	39.8		64.7		(38.5)	%
Total specialty products	$	840.9	$	1,052.4	(20.1)	%
Total specialty products sales volume (in barrels)	6,162,000		7,041,000		(12.5)	%
Average specialty products sales price per barrel	$	136.47	$	149.47	(8.7)
Fuel products:
Gasoline	$	285.7	$	530.9	(46.2)	%
Diesel	363.3		669.4		(45.7)	%
Jet fuel	53.9		100.8		(46.5)	%
Asphalt, heavy fuel oils and other (3)	170.5		324.3		(47.4)	%
Total fuel products	$	873.4	$	1,625.4	(46.3)	%
Total fuel products sales volume (in barrels)	18,067,000		22,353,000		(19.2)	%
Average fuel products sales price per barrel	$	48.34	$	72.72	(33.5)
Total sales	$	1,714.3	$	2,677.8	(36.0)	%
Total specialty and fuel products sales volume (in barrels)	24,229,000		29,394,000		(17.6)	%

(1)Represents packaged and synthetic specialty products at the Royal Purple, Bel-Ray and Calumet Packaging facilities.

(2)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 and (b) polyolester synthetic lubricants produced at the Missouri facility.

(3)Represents asphalt, heavy fuel oils and other products produced in connection with the production of fuels at the Shreveport, San Antonio and Great Falls refineries and crude oil sales from the San Antonio refinery to third-party customers.

The components of the $211.5 million decrease in specialty products segment sales for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Volume	$	(131.3)
Sales price	(80.2)
Total specialty products segment sales decrease	$	(211.5)

Specialty products segment sales decreased $211.5 million period over period, or 20.1%, primarily due to a $131.3 million negative impact from decreased volumes as a result of planned turnaround activity at our Princeton refinery and unplanned downtime at multiple facilities in the third quarter of 2020 due to Hurricane Laura and an $80.2 million unfavorable decrease for sales prices as a result of lower market prices.

52

The components of the $752.0 million decrease in fuel products segment sales for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Volume	$	36.3
Sales price	(443.8)
Divestiture Impact	(344.5)
Total fuel products segment sales decrease	$	(752.0)

Fuel products segment sales decreased $752.0 million period over period, or 46.3%, due to a $443.8 million decrease in sales prices as a result of weak market conditions in addition to the absence of $344.5 million of sales from the divestment of the San Antonio refinery in the fourth quarter of 2019. The unfavorable change in sales was partially offset by a $36.3 million favorable impact for increased sales volumes from our Great Falls and Shreveport refineries due to improved plant utilization in the current year to date period in comparison to the prior year comparative period.

Gross Profit. Gross profit decreased $172.7 million, or 47.9%, to $188.2 million in the nine months ended September 30, 2020, from $360.9 million in the same period in 2019. Gross profit for our specialty and fuel products segments were as follows:

	Nine Months Ended September 30,
	2020			2019			% Change
	(Dollars in millions, except per barrel data)
Gross profit by segment:
Specialty products:
Gross profit	$	240.9		$	255.6		(5.8)	%
Percentage of sales	28.6		%	24.3		%
Specialty products gross profit per barrel	$	39.09		$	36.30		7.7	%
Fuel products:
Gross profit (loss)	$	(52.7)		$	105.3		(150.0)	%
Percentage of sales	(6.0)		%	6.5		%
Fuel products gross profit (loss) per barrel	$	(2.92)		$	4.71		(162.0)	%
Total gross profit	$	188.2		$	360.9		(47.9)	%
Percentage of sales	11.0		%	13.5		%

The components of the $14.7 million decrease in specialty products segment gross profit for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Nine months ended September 30, 2019 reported gross profit	$	255.6
Cost of materials	125.7
Operating costs	10.5
LCM / LIFO inventory adjustments	(19.4)
Volumes	(51.3)
Sales price	(80.2)
Nine months ended September 30, 2020 reported gross profit	$	240.9

53

The decrease in specialty products segment gross profit of $14.7 million for the nine months ended September 30, 2020, as compared to the same period in 2019, was primarily due to a $51.3 million negative impact from decreased volumes as a result of softened demand and the termination of third-party naphthenic lubricating oils production, as well as a $19.4 million unfavorable impact of non-cash LCM expenses in the current year to date period in comparison to the prior year to date period. The decrease in gross profit was partially offset by the net $45.5 million favorable net impact of lower cost of materials and sales price and lower operating costs of $10.5 million in the current year to date period in comparison to the prior year to date period.

The components of the $158.0 million decrease in fuel products segment gross profit (loss) for the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019, were as follows:

	Dollar Change
	(In millions)
Nine months ended September 30, 2019 reported gross profit	$	105.3
Cost of materials	388.9
Volumes	7.6
Operating costs	4.9
Divestitures	(9.1)
RINs expense	(54.8)
LCM / LIFO inventory adjustments	(51.7)
Sales price	(443.8)
Nine months ended September 30, 2020 reported gross profit (loss)	$	(52.7)

The decrease in fuel products segment gross profit (loss) of $158.0 million for the nine months ended September 30, 2020, as compared to the same period in 2019, was primarily due to a $51.7 million unfavorable impact of non-cash LCM expenses, an increase in RINs expense of $54.8 million, which was the result of the benefit we recorded to cost of sales for the small refinery exemption we received in the third quarter of 2019, absent the third quarter of 2020, a $54.9 million unfavorable net impact of lower cost of materials and sales price, and the absence of the gross profit in the current year to date period for the San Antonio refinery, which was divested in the fourth quarter of 2019. The unfavorable change in gross profit (loss) was partially offset by a $7.6 million favorable impact of increased sales volumes due to improved utilization at our Great Falls refinery and a $4.9 million decrease in operating costs in the current year to date period in comparison to the prior year to date period.

Selling. Selling expenses decreased $3.1 million, or 7.7%, to $37.1 million in the nine months ended September 30, 2020, from $40.2 million in the same period in 2019. The decrease was driven primarily by a $2.4 million decrease in travel and entertainment, a $2.1 million decrease in depreciation and amortization expense, and a $2.0 million decrease in labor and benefits. These decreases were partially offset by a $1.9 million increase in sales commission expenses and a $0.6 million increase in professional fees.

General and administrative. General and administrative expenses decreased $28.8 million, or 27.3%, to $76.7 million in the nine months ended September 30, 2020, from $105.5 million in the same period in 2019. The decrease was primarily due to a $19.0 million decrease in professional fees, a $2.4 million decrease in equity based compensation related expenses, a $5.7 million decrease in labor and benefits, a $1.7 million decrease in travel and entertainment, an $0.8 million decrease in dues and subscriptions and a $0.6 million decrease in communication expenses. These decreases were partially offset by a $0.7 million increase in restructuring expense and a $0.6 million increase in insurance expenses.

Transportation. Transportation expenses decreased $12.2 million, or 12.7%, to $83.7 million in the nine months ended September 30, 2020, from $95.9 million in the same period in 2019. The decrease was primarily due to the outbound freight expense decreasing with sales volumes.

Loss on impairment and disposal of assets. Loss on impairment and disposal of assets decreased $24.4 million, to $6.7 million in the nine months ended September 30, 2020, from $31.1 million in the same period in the comparative period from 2019. For the nine months ended September 30, 2020, Loss on impairment and disposal of assets consisted of a $5.1 million write-off of other receivable for the remaining payment related to the sale of Anchor Drilling Fluids USA, LLC in 2017 and $1.5 million for the disposal of assets related to Bel-Ray facility (please read Note 13 - “Restructuring” for additional information regarding the Company’s restructuring program). For the nine months ended September 30, 2019, Loss on impairment and disposal of assets consisted of $10.7 million for the Company’s cease of use of the assets associated with the TexStar Midstream Logistics, L.P. Throughput and Deficiency Agreement, $19.7 million in impairment charges for the Company’s investment in FHC, and $0.7 million for losses recorded on various other asset disposals during the period.

54

Other operating expense. Other operating expense increased $8.9 million to expense of $9.7 million in the nine months ended September 30, 2020, from $0.8 million in the same period in 2019. The increase was primarily due to an increase in other claims and settlements of $8.0 million and increased environmental expenses of $1.4 million.

Interest expense. Interest expense decreased $6.0 million, or 6.0%, to $93.2 million in the nine months ended September 30, 2020, from $99.2 million in the same period in 2019, mostly due to the interest payments we received for financing costs related to our Supply and Offtake Agreements in the current year in comparison to the interest payments we made for the arrangements in the prior year comparative period. The favorable impact of receipts and payments of interest between the comparative periods for the Supply and Offtake Agreements was partially offset by interest incurred for increased borrowings on our revolving credit facility in the current year in comparison to the prior year comparative period.

Debt extinguishment costs. The Company incurred a gain on debt extinguishment costs of $0.7 million during the nine months ended September 30, 2019 related to the redemption of the 2021 Secured Notes during the period.

Gain (loss) on derivative instruments. There was a $57.7 million gain on derivative instruments in the nine months ended September 30, 2020, compared to a $14.4 million gain in the same period in 2019. The increase in gain on derivative instruments was largely driven by WCS crude oil basis swaps (both realized and unrealized) that locked in WCS/NYMEX WTI differentials greater than the average market differential during the current year; whereas, there were no WCS crude oil basis swaps outstanding as of the end of the third quarter of 2019.

Seasonality

The operating results for the fuel products segment, including the selling prices of asphalt products we produce, generally follow seasonal demand trends. Asphalt demand is generally lower in the first and fourth quarters of the year, as compared to the second and third quarters, due to the seasonality of the road construction and roofing industries we supply. Demand for gasoline and diesel is generally higher during the summer months than during the winter months due to seasonal increases in highway traffic. In addition, our natural gas costs can be higher during the winter months, as demand for natural gas as a heating fuel increases during the winter. As a result, our operating results for the first and fourth calendar quarters may be lower than those for the second and third calendar quarters of each year due to seasonality related to these and other products that we produce and sell.

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 2019 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.

Our principal sources of cash have historically included cash flow from operations, proceeds from public equity offerings, proceeds from asset sales, proceeds from notes offerings and bank borrowings. Principal uses of cash have included capital expenditures, acquisitions, distributions to our limited partners and general partner, debt service and redemptions and repurchases of debt. We may from time to time seek to retire or purchase our outstanding debt through cash purchases and/or exchanges for equity securities, in open market purchases, privately negotiated transactions, tender offers or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. Prevailing market conditions have been challenged by the COVID-19 pandemic, which could impact our ability to successfully access the public capital markets if needed. If we are unable to refinance or otherwise retire our 2022 Notes sufficiently in advance of their January 15, 2022 maturity, our liquidity may be adversely impacted through loss of trade credit with suppliers, or the imposition by our revolving credit facility lenders of an availability reserve on our borrowing capacity, as provided for in the Credit Agreement.

In general, we expect that our short-term liquidity needs including debt service, working capital, replacement and environmental capital expenditures and capital expenditures related to internal growth projects, will be met primarily through projected cash flow from operations, borrowings under our revolving credit facility and asset sales.

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Cash Flows from Operating, Investing and Financing Activities

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 material adverse 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 we expect 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 hedges 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:

	Nine Months Ended September 30,
	2020		2019
	(In millions)
Net cash provided by operating activities	$	65.6	$	153.9
Net cash used in investing activities	(37.9)		(13.7)
Net cash provided by (used in) financing activities	62.6		(131.7)
Net increase in cash and cash equivalents	$	90.3	$	8.5

Operating Activities. Operating activities provided cash of $65.6 million during the nine months ended September 30, 2020, compared to providing cash of $153.9 million during the same period in 2019. The change was impacted by operating cash flow other than working capital adjustments including decreased net income of $61.9 million, and an increase in working capital requirements of $33.1 million from the comparative period. The increase in working capital requirements during the nine months ended September 30, 2020 was primarily driven by negative changes in accounts payable, inventories, turnaround costs and accrued salaries, wages and benefits, partially offset by positive changes to accounts receivable and other liabilities in comparison to the same period in 2019.

Investing Activities. Investing activities used cash of $37.9 million during the nine months ended September 30, 2020, compared to a use of cash of $13.7 million during the same period in 2019. The change is primarily related to a $8.1 million increase in cash spent on additions to property, plant and equipment, the absence of $5.0 million in cash proceeds we received from the sale of an unconsolidated affiliate, a $3.7 million decrease in proceeds from sale of property, plant and equipment and a $3.3 million acquisition during 2020.

Financing Activities. Financing activities provided cash of $62.6 million in the nine months ended September 30, 2020, compared to using cash of $131.7 million during the same period in 2019. This change is primarily due to an increase in net proceeds from borrowings under our revolving credit facility of $100.1 million, as well as a decrease in repayments for borrowings on our senior notes of $137.3 million, partially offset by a $43.3 million change from being in a net payments position in 2019 to net proceeds in 2020 for our Supply and Offtake Agreements.

Investment in Unconsolidated Affiliates

In connection with the Anchor Transaction completed in November of 2017, the Company received a 10% investment in FHC as part of the total consideration for Anchor. FHC provides oilfield services and products to customers globally. The Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company recorded this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer.

During the second quarter of 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $25.4 million after evaluating indicators of impairment and valuing the investment using projected future cash flows and other Level 3 inputs. Utilizing an income approach, value indicators 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 company. As a result, the Company recorded an impairment charge of $16.1 million, which is included in Loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019.

During the third quarter of 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $9.3 million, as a result of a preferred stock issuance by FHC, which diluted the Company’s ownership percentage. As a result, the Company recorded an impairment charge of $3.6 million in Loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2019 and a $19.7 million impairment charge for the nine months ended September 30, 2019.

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Supply and Offtake Agreements

On March 31, 2017, the Company entered into several agreements with Macquarie to support the operations of the Great Falls refinery (the “Great Falls Supply and Offtake Agreements”). On July 27, 2017, the Company amended the Great Falls Supply and Offtake Agreements to provide Macquarie the option to terminate the Great Falls Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Great Falls Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Great Falls Supply and Offtake Agreements) from September 30, 2019 to June 30, 2023.

On June 19, 2017, the Company entered into several agreements with Macquarie to support the operations of the Shreveport refinery (the “Shreveport Supply and Offtake Agreements” and together with the Great Falls Supply and Offtake Agreements, the “Supply and Offtake Agreements”). Since inception, the Shreveport Supply and Offtake Agreements were set to expire on June 30, 2020; however, Macquarie has the option to terminate the Shreveport Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Shreveport Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Shreveport Supply and Offtake Agreements) from June 30, 2020 to June 30, 2023.

The Supply and Offtake Agreements are subject to minimum and maximum inventory levels. The agreements also provide for the lease to Macquarie of crude oil and certain refined product storage tanks located at the Great Falls and Shreveport refineries. Following expiration or termination of the agreements, Macquarie has the option to require us to purchase the crude oil and refined product inventories then owned by Macquarie and located at the leased storage tanks at then current market prices. Our obligations under the agreements are secured by the inventory included in these agreements.

Biosyn Holdings, LLC and Biosynthetic Technologies

In February 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC (“Biosyn”) for the purpose of acquiring Biosynthetic Technologies, LLC, a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. In March 2019, the Company sold its investment in Biosyn to The Heritage Group, a related party, for total proceeds of $5.0 million, which was recorded in the “other” component of Other income (expense) on the unaudited condensed consolidated statement of operations. Prior to the sale of Biosyn, the Company accounted for its ownership in Biosyn under the equity method of accounting.

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 expenditures to acquire assets to grow our business, to expand existing facilities, such as projects that increase operating capacity, or to 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):

	Nine Months Ended September 30,
	2020		2019
	(In millions)
Capital improvement expenditures	$	9.6	$	10.1
Replacement capital expenditures	12.5		15.2
Environmental capital expenditures	5.1		11.8
Turnaround capital expenditures	11.3		16.1
Total	$	38.5	$	53.2

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2020 Capital Spending Forecast

We continue to expect to incur capital expenditures of approximately $50.0 million to $60.0 million in 2020, which reflects our previously announced reduction in expected capital expenditures for 2020 due to increased volatility with domestic and global demand resulting from the ongoing COVID-19 pandemic. 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 existing 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. However, there is no assurance that we will be able to secure any additional capital that may be needed for these projects on reasonable terms or at all. Please read Part II, Item 1A. “Risk Factors.”

Debt and Credit Facilities

As of September 30, 2020, our primary debt and credit instruments consisted of the following:

•$600.0 million senior secured revolving credit facility maturing in February 2023 (“revolving credit facility”);

•$150.0 million of 7.625% Senior Notes due 2022 (“2022 Notes”);

•$325.0 million of 7.75% Senior Notes due 2023 (“2023 Notes”);

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

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

We were in compliance with all covenants under the debt instruments in place as of September 30, 2020 and believe we have adequate liquidity to conduct our business.

Short-Term Liquidity

As of September 30, 2020, our principal sources of short-term liquidity were (i) $159.9 million of availability under our revolving credit facility, (ii) inventory financing agreements related to the Great Falls and Shreveport refineries and (iii) $109.4 million of cash on hand. Borrowings under our revolving credit facility can be used for, among other things, working capital, capital expenditures and other lawful partnership purposes including acquisitions.

On February 23, 2018, we entered into the Third Amended and Restated Credit Agreement (the "Credit Agreement"), which provided for our $600.0 million senior secured revolving credit facility maturing in February 2023. The revolving credit facility is subject to borrowing base limitation, with a maximum letter of credit sublimit of $300.0 million, which amount may be increased to 90% of revolver commitments in effect with the consent of the Agent.

On September 4, 2019, we entered into the First Amendment (the “First Amendment”) to the Credit Agreement. The amendment expands the borrowing base by $99.6 million effective October 11, 2019 by adding the fixed assets of our Great Falls, MT refinery as collateral to the borrowing base. The $99.6 million expansion amortizes to zero on a straight-line basis over ten quarters starting in the first quarter of 2020. Additionally, while the fixed assets of the Great Falls, MT refinery are included in the borrowing base, the First Amendment provides for a 25 basis points increase in the applicable margin for loans, as well as increases in the minimum availability under the revolving credit facility required for us to be able to perform certain actions, including to make restricted payments of other distributions, sell or dispose of certain assets, make acquisitions or investments, or prepay other indebtedness.

Borrowings under the revolving credit facility are limited to a borrowing base that is determined based on advance rates of percentages of Eligible Accounts and Eligible Inventory (each as defined in the revolving credit facility agreement). As such, the borrowing base can fluctuate based on changes in selling prices of our products and our current material costs, primarily the cost of crude oil. The borrowing base is calculated in accordance with the revolving credit facility and agreed upon by us and the Agent (as defined in the revolving credit facility agreement). On September 30, 2020, we had availability on our revolving credit facility of approximately $159.9 million, based on a borrowing base of approximately $289.7 million, $29.7 million in outstanding standby letters of credit and $100.1 million of outstanding borrowings under the revolving credit facility. The borrowing base cannot exceed the revolving credit facility commitments then in effect. The lender group under our revolving credit facility is comprised of a syndicate of nine lenders with total commitments of $600.0 million. The lenders under our revolving credit facility have a first priority lien on our accounts receivable, certain inventory and substantially all of our cash.

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Amounts outstanding under our revolving credit facility can fluctuate materially during each quarter mainly due to cash flow from operations, normal changes in working capital, capital expenditures and debt service costs. Specifically, the amount borrowed under our revolving credit facility is typically at its highest level after we pay for the majority of our crude oil supply on the 20th day of every month per standard industry terms. The maximum revolving credit facility borrowings during the quarter ended September 30, 2020 were approximately $157.6 million. Our availability under our revolving credit facility during the peak borrowing days of the quarter has been sufficient to support our operations and service upcoming requirements. During the quarter ended September 30, 2020, availability for additional borrowings under our revolving credit facility was approximately $80.0 million at its lowest point.

The revolving credit facility currently bears interest at a rate equal to prime plus an applicable margin, or LIBOR plus an applicable margin, at our option, which applicable margin ranges between 50 basis points and 100 basis points for base rate loans and 150 basis points to 200 basis points for LIBOR loans, depending on our average availability for additional borrowings for the preceding quarter. The margin applicable to loans under the first loaned in and last to be repaid out (“FILO”) tranche of the revolving credit facility range from 150 to 200 basis points for base rate FILO loans and 250 to 300 basis points for LIBOR based FILO loans. The credit agreement provides for a 25 basis point reduction in the applicable margin rates beginning in the quarter after our Leverage Ratio (as defined in the credit agreement) is less than 5.5 to 1.0. We have met this test consistently since the fiscal quarter ended June 30, 2019. As a result, our applicable margin for the quarter ended September 30, 2020, was 50 basis points for prime, 150 basis points for LIBOR, 150 basis points for prime rate based FILO loans and 250 basis points for LIBOR based FILO loans; however, the margin can fluctuate quarterly based on our average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter. Letters of credit issued under the revolving credit facility accrue fees at a rate equal to the margin (measured in basis points) applicable to the LIBOR revolver loans.

In addition to paying interest on outstanding borrowings under the revolving credit facility, we are required to pay a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to either 0.250% or 0.375% per annum, depending on the average daily available unused borrowing capacity for the preceding month. We also pay a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees.

Our revolving credit facility contains various covenants that limit, among other things, our 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. The revolving credit facility generally permits us to make cash distributions to our unitholders as long as, after giving effect to each such cash distribution, we have availability under the revolving credit facility and cash on hand totaling at least equal to the sum of the amount of FILO Loans outstanding plus the greater of (i) 15% of the Aggregate Borrowing Base (as defined in the revolving credit facility agreement) then in effect, or 25% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $60.0 million (which amount is subject to increase in proportion to revolving commitment increases). Further, the revolving credit facility contains one springing financial covenant: if the availability of loans under the revolving credit facility falls below the sum of the amount of FILO loans outstanding plus the greater of (i) 10% of the Aggregate Borrowing Base, or 15% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), we will be required to maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio (as defined in the revolving credit facility agreement) of at least 1.0 to 1.0.

If an event of default exists under the revolving credit facility, the lenders will be able to accelerate the maturity of the credit facility and exercise other rights and remedies. An event of default includes, among other things, the nonpayment of principal, interest, fees or other amounts; failure of any representation or warranty to be true and correct when made or confirmed; failure to perform or observe covenants in the revolving credit facility or other loan documents, subject, in limited circumstances, to certain grace periods; cross-defaults in other indebtedness if the effect of such default is to cause, or permit the holders of such indebtedness to cause, the acceleration of such indebtedness under any material agreement; bankruptcy or insolvency events; monetary judgment defaults; asserted invalidity of the loan documentation; and a Change of Control (as defined in the revolving credit facility agreement).

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.

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From time to time we issue long-term debt securities, referred to as our senior notes. All of our outstanding senior notes, other than our 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 September 30, 2020, we had $150.0 million in 2022 Notes, $325.0 million in 2023 Notes, $200.0 million in 2024 Secured Notes, and $550.0 million in 2025 Notes outstanding. As of December 31, 2019, we had $350.0 million in 2022 Notes, $325.0 million in 2023 Notes and $550.0 million in 2025 Notes outstanding.

The indentures governing our senior notes contain covenants that, among other things, restrict our ability and the ability of certain of our subsidiaries to: (i) sell assets; (ii) pay distributions on, redeem or repurchase our common units or redeem or repurchase our 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 our restricted subsidiaries to us; (vii) consolidate, merge or transfer all or substantially all of our 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 September 30, 2020, our Fixed Charge Coverage Ratio (as defined in the indentures governing the Senior Notes) was 1.6.

Upon the occurrence of certain change of control events, each holder of the senior notes will have the right to require that we repurchase all or a portion of such holder’s senior notes in cash at a purchase price equal to 101% of the principal amount thereof, plus any accrued and unpaid interest to the date of repurchase.

We are subject, however, to conditions in the equity and debt markets for our common units and long-term senior notes, and there can be no assurance we will be able or willing to access the public or private markets for our common units and/or senior notes in the future. If we are unable or unwilling to issue additional common units, we may be required to either restrict capital expenditures and/or potential future acquisitions or pursue debt financing alternatives, some of which could involve higher costs or negatively affect our credit ratings. Furthermore, our ability to access the public and private debt markets is affected by our credit ratings.

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 2019 Annual Report.

Master Derivative Contracts and Collateral Trust Agreement

Under our credit support arrangements, our payment obligations under all of our master derivatives contracts for commodity hedging generally are secured by a first priority lien on our and our subsidiaries’ real property, plant and equipment, fixtures, intellectual property, certain financial assets, certain investment property, commercial tort claims, chattel paper, documents, instruments and proceeds of the foregoing (including proceeds of hedge arrangements). We had no additional letters of credit or cash margin posted with any hedging counterparty as of September 30, 2020. Our master derivatives contracts continue to impose a number of covenant limitations on our operating and financing activities, including limitations on liens on collateral, limitations on dispositions of collateral and collateral maintenance and insurance requirements. For financial reporting purposes, we do not offset the collateral provided to a counterparty against the fair value of our obligation to that counterparty. Any outstanding collateral is released to us upon settlement of the related derivative instrument liability.

All credit support thresholds with our hedging counterparties are at levels such that it would take a substantial increase in fuel products crack spreads or interest rates to require significant additional collateral to be posted. As a result, we do not expect further increases in fuel products crack spreads or interest rates to significantly impact our liquidity.

Additionally, we have a collateral trust agreement (the “Collateral Trust Agreement”) which governs how secured hedging counterparties share collateral pledged as security for the payment obligations owed by us to the secured hedging counterparties under their respective master derivatives contracts. The Collateral Trust Agreement limits to $150.0 million the extent to which forward purchase contracts for physical commodities are covered by, and secured under, the Collateral Trust Agreement and the Parity Lien Security Documents (as defined in the Collateral Trust Agreement). There is no such limit on financially settled derivative instruments used for commodity hedging. Subject to certain conditions set forth in the Collateral Trust Agreement, we have the ability to add secured hedging counterparties from time to time.

2024 Secured Notes

On August 5, 2020, we consummated a transaction whereby we exchanged approximately $200.0 million aggregate principal amount of our outstanding 2022 Notes for $200.0 million aggregate principal amount of newly issued 2024 Secured Notes (the “Exchange Transaction”).

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Consent Solicitation to Holders of the 2025 Notes and Supplemental Indenture

In connection with the Exchange Transaction, on August 5, 2020 we completed a solicitation of consents from holders of our outstanding 2025 Notes to certain proposed amendments to the indenture governing the 2025 Notes to allow us to consummate the Exchange Transaction. We paid consent fees of approximately $1.3 million in connection with obtaining these consents.

Following receipt of the required consents, the Company and the trustee of the 2025 Notes entered into the First Supplemental Indenture (the “Supplemental Indenture”) to the indenture governing the 2025 Notes, to permit the consummation of the Exchange Transaction. The Supplemental Indenture was effective on August 5, 2020.

Revolving Credit Facility Consent

On July 3, 2020, we executed a consent to the Credit Agreement allowing for the issuance of the 2024 Secured Notes. The consent was effective on August 5, 2020. We paid fees of $0.5 million in connection with obtaining this consent.

Collateral Trust Agreement Amendment

On July 31, 2020, we executed an amendment to the Collateral Trust Agreement and supporting documents to cause various references to the previously discharged 11.5% Senior Secured Notes due 2021 to refer instead to the 2024 Secured Notes, as well as other technical changes. The amendment was effective on August 5, 2020.

Contractual Obligations and Commercial Commitments

A summary of our total contractual cash obligations as of September 30, 2020, at current maturities and reflecting only those line items that have materially changed since December 31, 2019, is as follows:

			Payments Due by Period
	Total		Less Than 1 Year		1–3 Years		3–5 Years		More  Than 5 Years
	(In millions)
Operating activities:
Interest on long-term debt at contractual rates and maturities (1)	$	480.0	$	120.3	$	220.0	$	139.7	$	—
Operating lease obligations (2)	79.0		16.3		31.6		17.3		13.8
Letters of credit (3)	29.7		29.7		—		—		—
Purchase commitments (4)	270.4		130.4		58.8		48.4		32.8
Throughput contract (5)	26.7		3.9		7.8		7.9		7.1
Financing activities:
Obligations under inventory financing agreements	89.2		89.2		—		—		—
Finance lease obligations	3.9		0.6		1.3		1.3		0.7
Long-term debt obligations, excluding finance lease obligations	1,327.8		1.5		576.3		200.0		550.0
Total obligations	$	2,306.7	$	391.9	$	895.8	$	414.6	$	604.4

(1)Interest on long-term debt at contractual rates and maturities relates primarily to interest on our senior notes, revolving credit facility interest and fees and interest on our finance lease obligations, which excludes the adjustment for the interest rate swap agreement.

(2)We have various operating leases primarily for railcars, the use of land, storage tanks, compressor stations, equipment, precious metals and office facilities that extend through September 2035.

(3)Letters of credit primarily supporting crude oil and other feedstock purchases.

(4)Purchase commitments consist primarily of obligations to purchase fixed volumes of crude oil, other feedstocks and finished products for resale from various suppliers based on current market prices at the time of delivery.

(5)Throughput commitments consist primarily of obligations to transport a minimum volume of crude oil through a pipeline.

For additional information regarding our expected capital and turnaround expenditures for the remainder of 2020, for which we have not contractually committed, refer to “Capital Expenditures” above.

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Off-Balance Sheet Arrangements

We did not enter into any material off-balance sheet transactions during the three and nine months ended September 30, 2020.

Critical Accounting Policies and Estimates

For additional discussion regarding our critical accounting policies and estimates, see “Critical Accounting Policies and Estimates” under Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our 2019 Annual Report. There have been no material changes to such policies that occurred during the quarterly period ended September 30, 2020.

Recent Accounting Pronouncements

For additional discussion regarding recent accounting pronouncements, please read Note 2 — “New Accounting Pronouncements” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements.”

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

The following should be read in conjunction with “Quantitative and Qualitative Disclosures About Market Risk” included under Part II, Item 7A in our 2019 Annual Report. There have been no material changes in that information other than as discussed below. Also, please read Note 9 — “Derivatives” under Part I, Item 1 “Financial Statements — Notes to Unaudited Condensed Consolidated Financial Statements” in this Quarterly Report for additional discussion related to derivative instruments and hedging activities.

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.

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 specialty products segment and fuel products segment 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 quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S., and as a producer of motor fuels from petroleum, we are required to blend biofuels into the fuel products we produce at a rate that will meet the EPA’s annual quota. To the extent we are unable to blend biofuels at that rate or receive hardship exemptions, we must purchase RINs in the open market to satisfy the annual requirement. We have not entered into any derivative instruments to manage this risk.

Holding other variables related to RINs requirements constant, a $1.00 increase in the price of RINs as of September 30, 2020, would be expected to have a negative impact on Net income (loss) for 2020 of approximately $133.1 million.

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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 September 30, 2020 and December 31, 2019, 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.”

	September 30, 2020				December 31, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
	(In millions)
Financial Instrument:
2022 Notes	$	148.7	$	149.6	$	351.2	$	347.1
2023 Notes	$	292.9	$	321.9	$	325.2	$	321.0
2024 Secured Notes	$	217.0	$	198.4	$	—	$	—
2025 Notes	$	498.7	$	541.9	$	598.8	$	540.5
Revolving credit facility	$	100.1	$	100.1	$	—	$	—

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 $600.0 million revolving credit facility as of September 30, 2020, with borrowings bearing interest at the prime rate or LIBOR, at our option, plus the applicable margin. Borrowings under this facility are variable. We had $100.1 million of outstanding variable rate debt as of September 30, 2020 and no outstanding variable rate debt as of December 31, 2019.

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.

64

Item 4. Controls and Procedures

(a) 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 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 not effective as of September 30, 2020, at the reasonable assurance level due to a material weakness in our internal control over financial reporting as described below.

As of September 30, 2020, the following material weakness existed:

•The untimely and insufficient operation of controls in the financial statement close process, including lack of timely account reconciliation, analysis and review related to all financial statement accounts.

This material weakness resulted in not having adequate automated and manual controls designed and in place and not achieving the intended operating effectiveness of those controls impacting all financial statement accounts and disclosures.

Given the material weakness that exists as of September 30, 2020 we have concluded that our internal control over financial reporting remained ineffective as of September 30, 2020.

Remediation Efforts to Address Remaining Material Weakness

In order to remediate the remaining material weakness, the untimely and insufficient operation of controls in the financial statement close process, including lack of timely account reconciliation, analysis and review related to all financial statement accounts, we continue to take steps to improve our overall processes and controls.

Remediation activities include, but are not limited to the following:

•Reviewing, analyzing and properly documenting account reconciliations and our processes related to internal controls over financial reporting.

•Continuing to design and implement effective review and approval controls. These controls will address the accuracy and completeness of the data used in the performance of the respective controls.

We continue to progress in the execution of our remediation plan and are committed to continuing to review and improve our internal control processes and financial reporting controls and procedures. When fully implemented and operational, we believe the measures described above will remediate the control deficiencies that led to the remaining material weakness identified above and strengthen our internal controls over financial reporting. As we continue to evaluate and work to improve our internal controls over financial reporting, we may determine to take additional measures to address control deficiencies or modify certain activities of the remediation measures described above.

Changes in Internal Control over Financial Reporting

As described above, we have undertaken remediation actions to address the material weakness in our internal control over financial reporting. These remediation actions continued throughout the quarter ended September 30, 2020 but have not materially affected our internal control over financial reporting.

With the exception of the foregoing remediation actions described in the previous section, there have been no other changes in our internal control over financial reporting during the period covered by this Quarterly Report that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

65

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 2019 Annual Report and Part II Item 1A “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. 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 2019 Annual Report and Part II, Item 1A “Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

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.

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)).

66

Exhibit Number	Description
4.1	Indenture, dated as of August 5, 2020, by and among the Partnership, Calumet Finance Corp., the guarantors party thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on August 5, 2020 (File No. 000-51734)).
4.2	Form of 9.25% Senior Secured First Lien Note due 2024 (included in Exhibit 4.1).
10.1*	Todd Borgmann Promotion Letter, effective as of September 1, 2020, between Calumet GP, LLC and Todd Borgmann
10.2	Amendment No. 1 to Amended and Restated Collateral Trust Agreement, dated as of July 31, 2020, by and among the Partnership, the obligors party thereto and Wilmington Trust, National Association, as collateral trustee (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on August 5, 2020 (File No. 000-51734)).
10.3	Consent to Third Amended and Restated Credit Agreement, dated July 3, 2020, by and among Calumet Specialty Products Partners L.P. and certain of its subsidiaries, as Borrowers, the Lenders party thereto and Bank of America, N.A., as Agent (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on July 6, 2020 (File No. 000-51734)).
10.4+	Support Agreement, dated July 6, 2020, among Calumet Specialty Products Partners L.P., Calumet Finance Corp. and the Holders party thereto (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the commission on July 6, 2020 (File No. 000-51734)).
31.1*	Sarbanes-Oxley Section 302 certification of Stephen P. Mawer.
31.2*	Sarbanes-Oxley Section 302 certification of Todd Borgmann.
32.1**	Section 1350 certification of Stephen P. Mawer and Todd Borgmann.
100.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
*	Filed herewith.
**	Furnished herewith.
+	Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished to the Commission upon request.

67

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:	November 6, 2020	By:	/s/ Todd Borgmann
			Todd Borgmann
			Senior Vice President and Interim Chief Financial Officer
			(Authorized Person and Principal Accounting Officer)

68

EX-10.1

Exhibit 10.1*

August 10, 2020

Attention: Todd Borgmann

todd.borgmann@calumetspecialty.com

Subject: Promotion Letter

Dear Todd,

On behalf of Calumet GP, LLC I am pleased to promote you to the role of Senior Vice President & Interim Chief Financial Officer effective September 1, 2020, reporting to me.

Effective September 1, 2020, your annual salary will be $325,000. You will continue to be eligible to participate in the Senior Executive Annual Bonus Plan with a bonus target of 150% of your annual base salary based on company financial metrics and your own individual contributions. If minimum financial metrics and minimum individual contributions are met, it would pay at 50% of your base salary and at its maximum it would pay at 200% of your base annual salary. If actual performance falls between the various levels (between minimum and target for instance), the annual bonus award will be prorated, up to the maximum potential award. Should the Company not meet its minimum financial target, no awards will be issued regardless of individual contributions. Any award earned under this program will be paid 50% in cash and 50% in fully vested phantom units which will be delivered to you on the fourth anniversary of the grant date.

You will continue to be eligible to participate in the Calumet GP, LLC Amended and Restated Long-Term Incentive Plan. Starting in January 2021, your annual LTIP target will be 60% of your annual base salary, and these units have a 3-year cliff vest requirement. Any award under the Plan will take into consideration your individual contribution as well as the achievement of Company financial targets. Should the Company not meet its minimum financial target, no awards will be issued under the Plan.

All other terms and conditions of your at-will employment remain the same.

I am pleased to have you take on this new and exciting role and look forward to your future success. Please let me know if you have any questions.

Sincerely,

Steve Mawer, Chief Executive Officer

Agreed and accepted:

/s/ Todd Borgmann	8/10/2020
Todd Borgmann	Date

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, Stephen P. Mawer, 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 September 30, 2020;

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 controls 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: November 6, 2020	/s/ Stephen P. Mawer
	Stephen P. Mawer
	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, 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 September 30, 2020;

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 controls 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: November 6, 2020	/s/ Todd Borgmann
	Todd Borgmann
	Senior Vice President and Interim Chief Financial Officer
	(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 September 30, 2020 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of Stephen P. Mawer, Chief Executive Officer of Calumet GP, LLC, the general partner of the Partnership (the “General Partner”), and Todd Borgmann, Senior Vice President and Interim 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.

November 6, 2020	/s/ Stephen P. Mawer
	Stephen P. Mawer
	Chief Executive Officer of Calumet GP, LLC, general partner of Calumet Specialty Products Partners, L.P.
	(Principal Executive Officer)

November 6, 2020	/s/ Todd Borgmann
	Todd Borgmann
	Executive Senior Vice President and Interim 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	9 Months Ended
	Sep. 30, 2020	Nov. 05, 2020
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
Local Phone Number	328-5660
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	Sep. 30, 2020
Entity Tax Identification Number	35-1811116
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		78,062,346
commission file number [Line Items]
Title of 12(b) Security	Common units representing limited partner interests
Trading Symbol	CLMT
Security Exchange Name	NASDAQ

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions		Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents		$ 109.4	$ 19.1
Accounts Receivable, after Allowance for Credit Loss		161.1	175.0
Accounts receivable, net:
Other		13.9	13.5
Total accounts receivable		175.0	188.5
Inventories		230.8	292.6
Derivative assets		13.0	0.9
Prepaid expenses and other current assets		12.8	11.0
Total current assets		541.0	512.1
Property, plant and equipment, net		932.9	973.5
Goodwill		172.5	171.4
Other intangible assets, net		61.3	71.2
Operating lease right-of-use assets	[1]	66.4	93.1
Other noncurrent assets, net		33.4	36.5
Total assets		1,807.5	1,857.8
Current liabilities:
Accounts payable		158.4	230.2
Accrued interest payable		45.5	32.0
Accrued salaries, wages and benefits		31.4	35.7
Other taxes payable		15.7	11.8
Obligations under inventory financing agreements		89.2	134.3
Other current liabilities		103.0	58.6
Current portion of operating lease liabilities	[1]	26.4	60.6
Current portion of long-term debt		2.1	1.8
Total current liabilities		471.7	565.0
Pension and postretirement benefit obligations		7.4	7.9
Other long-term liabilities		19.4	20.8
Long-term operating lease liabilities	[1]	40.5	33.0
Long-term debt, less current portion		1,313.3	1,209.5
Total liabilities		1,852.3	1,836.2
Partners’ capital (deficit):
Limited partners’ interest 78,055,816 units and 77,560,355 units issued and outstanding as of September 30, 2020 and December 31, 2019, respectively		(44.9)	20.2
General partner’s interest		10.7	12.0
Accumulated other comprehensive loss		(10.6)	(10.6)
Total partners’ capital (deficit)		(44.8)	21.6
Total liabilities and partners’ capital (deficit)		1,807.5	1,857.8
Limited Partner
Partners’ capital (deficit):
Total partners’ capital (deficit)		$ (44.9)	$ 20.2

[1] In the third quarter of 2020, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $20.3 million.

XML

Condensed Consolidated Balance Sheets (Parenthetical) - Limited Partner - shares	Sep. 30, 2020	Dec. 31, 2019
Limited partners’ interest units issued (in shares)	78,055,816	77,560,355
Limited Partners' Capital Account, Units Outstanding	78,055,816	77,560,355

XML

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Impairment of Long-Lived Assets to be Disposed of	$ 0.0	$ 3.2	$ 6.7	$ 31.1
Other Operating Income (Expense), Net	2.5	1.7	9.7	0.8
Sales	568.0		1,714.3	2,677.8
Cost of sales	523.4		1,526.1	2,316.9
Gross profit	44.6	117.8	188.2	360.9
Operating costs and expenses:
Selling	11.2	12.6	37.1	40.2
General and administrative	29.7	32.8	76.7	105.5
Transportation	28.1	28.4	83.7	95.9
Other Income Tax Expense (Benefit), Continuing Operations	3.9	5.7	6.2	15.5
Loss on impairment and disposal of assets		3.2	6.7	31.1
Operating income (loss)	(30.8)	33.4	(31.9)	71.9
Other income (expense):
Interest expense	(33.3)	(33.8)	(93.2)	(99.2)
Gain (Loss) from debt extinguishment	0.0	0.0	0.0	0.7
Gain (loss) on derivative instruments	7.9	(5.0)	57.7	14.4
Other	(0.2)	(1.3)	(1.3)	(7.9)
Total other expense	(25.2)	(37.5)	(34.2)	(76.2)
Net loss before income taxes	(56.0)	(4.1)	(66.1)	(4.3)
Income tax expense from continuing operations	0.1	0.5	0.8	0.7
Net income (loss) from continuing operations	(56.1)	(4.6)	(66.9)	(5.0)
Net loss	(56.1)	(4.6)	(66.9)	(5.0)
Less:
General partner’s interest in net loss	(1.1)	(0.1)	(1.3)	(0.1)
Net income (loss) available to limited partners	$ (55.0)	$ (4.5)	$ (65.6)	$ (4.9)
Weighted average limited partner units outstanding:
Basic and Diluted	78,743,083	78,299,472	78,602,651	78,174,976
Limited partners' interest basic net income (loss) per unit [Abstract]
Limited partners’ interest	$ (0.70)	$ (0.06)	$ (0.83)	$ (0.06)
Limited partners' interest diluted net income (loss) per unit
From continuing operations	0	(0.06)	0	(0.06)
Income (Loss) from Discontinued Operations, Net of Tax, Per Outstanding Limited Partnership Unit, Diluted	0	0	0	0
Limited partners' interest	$ 0	$ (0.06)	$ 0	$ (0.06)
Weighted Average Number of Shares Outstanding, Diluted	78,743,083	78,299,472	78,602,651	78,174,976
Oil and Gas, Refining and Marketing [Member]
Sales	$ 568.0	$ 929.6	$ 1,714.3	$ 2,677.8
Cost of sales		$ 811.8

XML

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net loss	$ (56.1)	$ (4.6)	$ (66.9)	$ (5.0)
Cash flow hedge loss reclassified to net loss	0.0	0.0	0.2	0.0
Defined Benefit Plan, Amount Recognized in Net Periodic Benefit Cost (Credit) and Other Comprehensive (Income) Loss, before Tax	0.2	0.0	0.2	0.0
Foreign currency translation adjustment	0.0	0.0	0.0	1.2
Total other comprehensive income	0.2	0.0	0.0	1.2
Comprehensive loss attributable to partners’ capital	$ (55.9)	$ (4.6)	$ (66.9)	$ (3.8)

XML

Unaudited Condensed Consolidated Statements of Partners' Capital - USD ($) $ in Millions	Total	General Partner	Limited Partners	Accumulated Other Comprehensive Loss
Beginning of Period at Dec. 31, 2018	$ 65.7	$ 12.8	$ 61.6	$ (8.7)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	1.2	0.0	0.0	1.2
Net loss	(5.0)	(0.1)	(4.9)	0.0
Settlement of tax withholdings on equity-based incentive compensation	(0.5)	0.0	(0.5)	0.0
Amortization of phantom units	1.3	0.0	1.3	0.0
End of Period at Sep. 30, 2019	62.8	12.8	57.5	(7.5)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions from Calumet GP, LLC	0.1	0.1	0.0	0.0
Beginning of Period at Jun. 30, 2019	67.1	12.9	61.7	(7.5)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.0
Net loss	(4.6)	(0.1)	(4.5)	0.0
Amortization of phantom units	0.3	0.0	0.3	0.0
End of Period at Sep. 30, 2019	62.8	12.8	57.5	(7.5)
Beginning of Period at Dec. 31, 2019	21.6	12.0	20.2	(10.6)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.0
Net loss	(66.9)	(1.3)	(65.6)	0.0
Settlement of tax withholdings on equity-based incentive compensation	(0.5)	0.0	(0.5)	0.0
Amortization of phantom units	1.0	0.0	1.0	0.0
End of Period at Sep. 30, 2020	(44.8)	10.7	(44.9)	(10.6)
Increase (Decrease) in Partners' Capital [Roll Forward]
Contributions from Calumet GP, LLC	0.0
Beginning of Period at Jun. 30, 2020	10.9	11.8	9.9	(10.8)
Increase (Decrease) in Partners' Capital [Roll Forward]
Other comprehensive income	0.2	0.0	0.0	0.2
Net loss	(56.1)	(1.1)	(55.0)	0.0
Amortization of phantom units	0.2	0.0	0.2	0.0
End of Period at Sep. 30, 2020	$ (44.8)	$ 10.7	$ (44.9)	$ (10.6)

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Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net loss	$ (66.9)	$ (5.0)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	78.8	82.6
Amortization of turnaround costs	12.7	16.5
Non-cash interest expense	4.8	4.9
(Gain) loss on debt extinguishment	0.0	(0.7)
Unrealized (gain) loss on derivative instruments	(21.2)	20.2
Loss on impairment and disposal of assets	6.7	31.1
Operating lease expense	45.0	57.1
Operating lease payments	(45.0)	(57.1)
Equity-based compensation	2.5	4.9
Lower of cost or market inventory adjustment	35.3	(38.8)
Other non-cash activities	0.8	(7.0)
Changes in assets and liabilities:
Accounts receivable	10.7	(49.8)
Inventories	26.6	29.6
Prepaid expenses and other current assets	1.3	4.6
Derivative activity	(0.3)	(0.4)
Turnaround costs	(19.7)	(16.8)
Accounts payable	(55.5)	61.7
Accrued interest payable	12.7	10.8
Accrued salaries, wages and benefits	(5.7)	2.6
Other taxes payable	3.9	6.0
Other liabilities	38.1	(3.1)
Net cash provided by operating activities	65.6	153.9
Investing activities
Additions to property, plant and equipment	(35.5)	(27.4)
Payments to Acquire Businesses, Net of Cash Acquired	(3.3)	0.0
Proceeds from sale of unconsolidated affiliate	0.0	5.0
Proceeds from sale of business, net	0.0	3.7
Net cash provided by discontinued operations	0.9	5.0
Net cash used in investing activities	(37.9)	(13.7)
Net Cash Provided by (Used in) Financing Activities [Abstract]
Proceeds from borrowings — revolving credit facility	895.9	0.0
Repayments of borrowings — revolving credit facility	(795.8)	0.0
Repayments of borrowings — senior notes	0.0	137.3
Payments on finance lease obligations	(0.4)	(0.9)
Proceeds from inventory financing agreements	584.8	848.7
Payments on inventory financing agreements	(620.1)	(840.7)
Proceeds from other financing obligations	31.4	0.0
Payments on other financing obligations	(33.2)	(1.6)
Contributions from Calumet GP, LLC	0.0	0.1
Net cash provided by (used in) in financing activities	62.6	(131.7)
Net increase in cash and cash equivalents	90.3	8.5
Cash and cash equivalents at beginning of period	19.1	155.7
Cash and cash equivalents at end of period	109.4	164.2
Cash and cash equivalents	109.4	164.2
Supplemental disclosure of non-cash investing activities
Non-cash property, plant and equipment additions	$ 3.8	$ 12.3

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Fair Value Measurements

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 and December 31, 2019, 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 September 30, 2020, 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 quoted prices from an independent pricing service. Please read Note 6 - “Commitments and Contingencies” for further information on the Company’s RINs Obligation.

Precious Metals Leases

The fair value of precious metals leases 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):

	September 30, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Derivative assets:
Natural gas swaps	$	—	$	—	$	0.5	$	0.5	$	—	$	—	$	—	$	—
Gasoline crack spread swaps	—		—		0.8		0.8		—		—		1.3		1.3
Inventory financing obligation	—		—		1.9		1.9		—		—		—		—
Diesel crack spread swaps	—		—		5.9		5.9		—		—		0.4		0.4
Diesel - MEH crack spread swaps	—		—		1.6		1.6		—		—		—		—
2/1/1 crack spread swaps	—		—		—		—		—		—		0.5		0.5
WCS crude oil basis swaps	—		—		4.2		4.2		—		—		(1.3)		(1.3)
Total derivative assets	$	—	$	—	$	14.9	$	14.9	$	—	$	—	$	0.9	$	0.9
Pension plan investments	32.7		—		—		32.7		32.5		—		—		32.5
Total recurring assets at fair value	$	32.7	$	—	$	14.9	$	47.6	$	32.5	$	—	$	0.9	$	33.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	—	$	—	$	—	$	—	$	(7.2)	$	(7.2)
Total derivative liabilities	—		—		—		—		—		—		(7.2)		(7.2)
RINs obligation	—		(76.1)		—		(76.1)		—		(13.0)		—		(13.0)
Precious metals leases	(5.3)		—		—		(5.3)		(5.8)		—		—		(5.8)
Liability awards	(10.1)		—		—		(10.1)		(7.4)		—		—		(7.4)
Total recurring liabilities at fair value	$	(15.4)	$	(76.1)	$	—	$	(91.5)	$	(13.2)	$	(13.0)	$	(7.2)	$	(33.4)

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):

	Nine Months Ended September 30,
	2020		2019
Fair value at January 1,	$	(6.3)	$	19.8
Realized gain on derivative instruments	(36.5)		(34.6)
Unrealized gain (loss) on derivative instruments	21.2		(20.2)
Settlements	36.5		34.6
Fair value at September 30,	$	14.9	$	(0.4)
Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	21.2	$	(20.2)

All settlements from derivative instruments not designated as hedges are recorded in Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. Please read Note 9 - “Derivatives” for further information on derivative instruments.

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. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition.

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 Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company recorded this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. The investment in FHC is recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized, the Company would classify this asset as Level 3 within the fair value hierarchy based on the nature of the fair value inputs. For the nine months ended September 30, 2019, the Company recorded an impairment charge of $19.7 million on the investment in FHC and the categorization of the framework used to value the assets is considered Level 3. Please read Note 14 - “Investment in Unconsolidated Affiliates” for further information.

Estimated Fair Value of Financial Instruments

Cash and cash equivalents

The carrying value of cash and cash equivalents is each considered to be representative of its fair value.

Debt

The estimated fair value of long-term debt at September 30, 2020 and December 31, 2019, consists primarily of senior notes. The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s 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, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and are classified as Level 3. Please read Note 8 - “Long-Term Debt” for further information on long-term debt.

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

		September 30, 2020				December 31, 2019
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2022 Notes and 2023 Notes	1	$	441.6	$	471.5	$	676.4	$	668.1
2024 Secured Notes and 2025 Notes	2	$	715.7	$	740.3	$	598.8	$	540.5
Revolving credit facility	3	$	100.1	$	100.1	$	—	$	—
Finance lease and other obligations	3	$	6.6	$	6.6	$	6.5	$	6.5

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Earnings Per Unit

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator for basic and diluted earnings per limited partner unit:
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Less:
General partner’s interest in net loss	(1.1)		(0.1)		(1.3)		(0.1)
Net loss available to limited partners	$	(55.0)	$	(4.5)	$	(65.6)	$	(4.9)
Denominator for basic and diluted earnings per limited partner unit:
Weighted average limited partner units outstanding (1)	78,743,083		78,299,472		78,602,651		78,174,976
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.70)	$	(0.06)	$	(0.83)	$	(0.06)

(1)Total diluted weighted average limited partner units outstanding excludes a de-minimis amount of un-vested phantom units for the three and nine months ended September 30, 2020 and excludes 0.1 million for the three and nine months ended September 30, 2019.

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Segments and Related Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segments and Related Information

Segments and Related Information

a. 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 makers (“CODM”). The Company’s operations are managed by the CODM using the following reportable segments:

•Specialty Products. The specialty products segment produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for industrial, consumer and automotive goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications.

•Fuel Products. The fuel products segment produces primarily gasoline, diesel, jet fuel, and asphalt which are primarily sold to customers located in the PADD 3 and PADD 4 areas within the U.S.

•Corporate. The corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products or Fuel Products segments.

During the first quarter of 2020, the CODM changed the definition and calculation of Adjusted EBITDA, which is used by the Company for evaluating performance, allocating resources and managing the business. The revised definition and calculation of Adjusted EBITDA now includes LCM inventory adjustments and LIFO adjustments, (see items (g) and (h) below,) which were previously excluded. This revised definition and calculation better reflects the performance of the Company’s business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies,” of the Company’s 2019 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 refined 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, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment.

Reportable segment information for the three months ended September 30, 2020 and 2019, is as follows (in millions):

Three Months Ended September 30, 2020	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	281.3	$	286.7	$	—	$	—	$	568.0
Inter-segment sales	13.1		7.7		—		(20.8)		—
Total sales	$	294.4	$	294.4	$	—	$	(20.8)	$	568.0
Adjusted EBITDA	$	56.0	$	(13.5)	$	(17.1)	$	—	$	25.4
Reconciling items to net loss:
Depreciation and amortization	10.7		17.6		1.9		—		30.2
LCM / LIFO (gain) loss	(4.7)		5.8		—		—		1.1
Interest (benefit) expense	(0.1)		2.1		31.3		—		33.3
Unrealized (gain) loss on derivatives	(0.3)		9.5		—		—		9.2
Other non-recurring expenses									5.5
Equity-based compensation and other items									2.1
Income tax expense									0.1
Net loss									$	(56.1)
Three Months Ended September 30, 2019	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	355.8	$	573.8	$	—	$	—	$	929.6
Inter-segment sales	19.8		14.3		—		(34.1)		—
Total sales	$	375.6	$	588.1	$	—	$	(34.1)	$	929.6
Adjusted EBITDA	$	51.6	$	47.7	$	(23.1)	$	—	$	76.2
Reconciling items to net loss:
Depreciation and amortization	12.9		18.6		2.0		—		33.5
LCM / LIFO (gain) loss	(0.9)		3.6		—		—		2.7
(Gain) loss on impairment and disposal of assets	—		(0.4)		3.6		—		3.2
Interest expense	—		5.6		28.2		—		33.8
Unrealized loss on derivatives	—		5.4		—		—		5.4
Other non-recurring expenses									1.3
Equity-based compensation and other items									0.4
Income tax expense									0.5
Net loss									$	(4.6)

Reportable segment information for the nine months ended September 30, 2020 and 2019, is as follows (in millions):

Nine Months Ended September 30, 2020	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	840.9	$	873.4	$	—	$	—	$	1,714.3
Inter-segment sales	41.7		20.5		—		(62.2)		—
Total sales	$	882.6	$	893.9	$	—	$	(62.2)	$	1,714.3
Adjusted EBITDA	$	176.6	$	27.6	$	(54.1)	$	—	$	150.1
Reconciling items to net loss:
Depreciation and amortization	32.6		53.2		5.7		—		91.5
LCM / LIFO loss	13.3		22.2		—		—		35.5
Loss on impairment and disposal of assets	1.5		0.1		5.1		—		6.7
Interest (benefit) expense	(0.1)		—		93.3		—		93.2
Unrealized gain on derivatives	(0.1)		(21.1)		—		—		(21.2)
Other non-recurring expenses									4.3
Equity-based compensation and other items									6.2
Income tax expense									0.8
Net loss									$	(66.9)
Nine Months Ended September 30, 2019	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,052.4	$	1,625.4	$	—	$	—	$	2,677.8
Inter-segment sales	67.0		37.7		—		(104.7)		—
Total sales	$	1,119.4	$	1,663.1	$	—	$	(104.7)	$	2,677.8
Income from unconsolidated affiliates	$	3.8	$	—	$	—	$	—	$	3.8
Adjusted EBITDA	$	165.1	$	123.8	$	(76.0)	$	—	$	212.9
Reconciling items to net loss:
Depreciation and amortization	36.6		56.8		5.7		—		99.1
LCM / LIFO gain	(6.2)		(31.7)		—		—		(37.9)
Loss on impairment and disposal of assets	—		11.4		19.7		—		31.1
Interest expense	—		12.7		86.5		—		99.2
Gain on debt extinguishment	—		—		(0.7)		—		(0.7)
Unrealized loss on derivatives	8.1		12.1		—		—		20.2
Other non-recurring expenses									1.3
Gain on sale of unconsolidated affiliate	(1.2)		—		—		—		(1.2)
Equity-based compensation and other items									6.1
Income tax expense									0.7
Net loss									$	(5.0)

b. Geographic Information

International sales accounted for less than ten percent of consolidated sales in each of the three and nine months ended September 30, 2019. International sales accounted for greater than ten percent of consolidated sales for the three months ended September 30, 2020 and less than ten percent of consolidated sales for the nine months ended September 30, 2020. Substantially all of the Company’s long-lived assets are domestically located.

c. Product Information

The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, packaged and synthetic specialty products and other. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other. The following table sets forth the major product category sales for each of the Specialty products and Fuel products segments for the three months ended September 30, 2020 and 2019 (dollars in millions):

	Three Months Ended September 30,
	2020				2019
Specialty products:
Lubricating oils	$	122.5	21.6	%	$	156.1	16.8	%
Solvents	54.6		9.6	%	86.1		9.3	%
Waxes	33.8		5.9	%	30.1		3.2	%
Packaged and synthetic specialty products	60.9		10.7	%	59.6		6.4	%
Other	9.5		1.7	%	23.9		2.6	%
Total	$	281.3	49.5	%	$	355.8	38.3	%
Fuel products:
Gasoline	$	97.4	17.1	%	$	189.5	20.4	%
Diesel	110.9		19.5	%	225.4		24.2	%
Jet fuel	17.6		3.2	%	39.5		4.3	%
Asphalt, heavy fuel oils and other	60.8		10.7	%	119.4		12.8	%
Total	$	286.7	50.5	%	$	573.8	61.7	%
Consolidated sales	$	568.0	100.0	%	$	929.6	100.0	%

The following table sets forth the major product category sales for the nine months ended September 30, 2020 and 2019 (dollars in millions):

	Nine Months Ended September 30,
	2020				2019
Specialty products:
Lubricating oils	$	352.5	20.6	%	$	460.7	17.2	%
Solvents	179.0		10.4	%	254.2		9.5	%
Waxes	92.2		5.5	%	92.6		3.5	%
Packaged and synthetic specialty products	177.4		10.3	%	180.2		6.7	%
Other	39.8		2.3	%	64.7		2.4	%
Total	$	840.9	49.1	%	$	1,052.4	39.3	%
Fuel products:
Gasoline	$	285.7	16.7	%	$	530.9	19.8	%
Diesel	363.3		21.2	%	669.4		25.0	%
Jet fuel	53.9		3.1	%	100.8		3.8	%
Asphalt, heavy fuel oils and other	170.5		9.9	%	324.3		12.1	%
Total	$	873.4	50.9	%	$	1,625.4	60.7	%
Consolidated sales	$	1,714.3	100.0	%	$	2,677.8	100.0	%

d. Major Customers

During the three and nine months ended September 30, 2020 and 2019, the Company had no customer that represented 10% or greater of consolidated sales.

e. Major Suppliers

During the three months ended September 30, 2020 and 2019, the Company had two suppliers that supplied approximately 60.3% and 67.5%, respectively, of its crude oil supply. During the nine months ended September 30, 2020 and 2019, the Company had two suppliers that supplied approximately 56.4% and 64.6%, respectively, of its crude oil supply.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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):

	September 30, 2020								December 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Derivative assets:
Natural gas swaps	$	—	$	—	$	0.5	$	0.5	$	—	$	—	$	—	$	—
Gasoline crack spread swaps	—		—		0.8		0.8		—		—		1.3		1.3
Inventory financing obligation	—		—		1.9		1.9		—		—		—		—
Diesel crack spread swaps	—		—		5.9		5.9		—		—		0.4		0.4
Diesel - MEH crack spread swaps	—		—		1.6		1.6		—		—		—		—
2/1/1 crack spread swaps	—		—		—		—		—		—		0.5		0.5
WCS crude oil basis swaps	—		—		4.2		4.2		—		—		(1.3)		(1.3)
Total derivative assets	$	—	$	—	$	14.9	$	14.9	$	—	$	—	$	0.9	$	0.9
Pension plan investments	32.7		—		—		32.7		32.5		—		—		32.5
Total recurring assets at fair value	$	32.7	$	—	$	14.9	$	47.6	$	32.5	$	—	$	0.9	$	33.4
Liabilities:
Derivative liabilities:
Inventory financing obligation	$	—	$	—	$	—	$	—	$	—	$	—	$	(7.2)	$	(7.2)
Total derivative liabilities	—		—		—		—		—		—		(7.2)		(7.2)
RINs obligation	—		(76.1)		—		(76.1)		—		(13.0)		—		(13.0)
Precious metals leases	(5.3)		—		—		(5.3)		(5.8)		—		—		(5.8)
Liability awards	(10.1)		—		—		(10.1)		(7.4)		—		—		(7.4)
Total recurring liabilities at fair value	$	(15.4)	$	(76.1)	$	—	$	(91.5)	$	(13.2)	$	(13.0)	$	(7.2)	$	(33.4)

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):

	Nine Months Ended September 30,
	2020		2019
Fair value at January 1,	$	(6.3)	$	19.8
Realized gain on derivative instruments	(36.5)		(34.6)
Unrealized gain (loss) on derivative instruments	21.2		(20.2)
Settlements	36.5		34.6
Fair value at September 30,	$	14.9	$	(0.4)
Total gain (loss) included in net loss attributable to changes in unrealized gain (loss) relating to financial assets and liabilities held as of September 30,	$	21.2	$	(20.2)

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

		September 30, 2020				December 31, 2019
	Level	Fair Value		Carrying Value		Fair Value		Carrying Value
Financial Instrument:
2022 Notes and 2023 Notes	1	$	441.6	$	471.5	$	676.4	$	668.1
2024 Secured Notes and 2025 Notes	2	$	715.7	$	740.3	$	598.8	$	540.5
Revolving credit facility	3	$	100.1	$	100.1	$	—	$	—
Finance lease and other obligations	3	$	6.6	$	6.6	$	6.5	$	6.5

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Earnings Per Unit (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Numerator for basic and diluted earnings per limited partner unit:
Net loss	$	(56.1)	$	(4.6)	$	(66.9)	$	(5.0)
Less:
General partner’s interest in net loss	(1.1)		(0.1)		(1.3)		(0.1)
Net loss available to limited partners	$	(55.0)	$	(4.5)	$	(65.6)	$	(4.9)
Denominator for basic and diluted earnings per limited partner unit:
Weighted average limited partner units outstanding (1)	78,743,083		78,299,472		78,602,651		78,174,976
Limited partners’ interest basic and diluted net loss per unit:
Limited partners’ interest	$	(0.70)	$	(0.06)	$	(0.83)	$	(0.06)

(1)Total diluted weighted average limited partner units outstanding excludes a de-minimis amount of un-vested phantom units for the three and nine months ended September 30, 2020 and excludes 0.1 million for the three and nine months ended September 30, 2019.

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Segments and Related Information (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2020

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Reportable Segment Information

Reportable segment information for the three months ended September 30, 2020 and 2019, is as follows (in millions):

Three Months Ended September 30, 2020	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	281.3	$	286.7	$	—	$	—	$	568.0
Inter-segment sales	13.1		7.7		—		(20.8)		—
Total sales	$	294.4	$	294.4	$	—	$	(20.8)	$	568.0
Adjusted EBITDA	$	56.0	$	(13.5)	$	(17.1)	$	—	$	25.4
Reconciling items to net loss:
Depreciation and amortization	10.7		17.6		1.9		—		30.2
LCM / LIFO (gain) loss	(4.7)		5.8		—		—		1.1
Interest (benefit) expense	(0.1)		2.1		31.3		—		33.3
Unrealized (gain) loss on derivatives	(0.3)		9.5		—		—		9.2
Other non-recurring expenses									5.5
Equity-based compensation and other items									2.1
Income tax expense									0.1
Net loss									$	(56.1)
Three Months Ended September 30, 2019	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	355.8	$	573.8	$	—	$	—	$	929.6
Inter-segment sales	19.8		14.3		—		(34.1)		—
Total sales	$	375.6	$	588.1	$	—	$	(34.1)	$	929.6
Adjusted EBITDA	$	51.6	$	47.7	$	(23.1)	$	—	$	76.2
Reconciling items to net loss:
Depreciation and amortization	12.9		18.6		2.0		—		33.5
LCM / LIFO (gain) loss	(0.9)		3.6		—		—		2.7
(Gain) loss on impairment and disposal of assets	—		(0.4)		3.6		—		3.2
Interest expense	—		5.6		28.2		—		33.8
Unrealized loss on derivatives	—		5.4		—		—		5.4
Other non-recurring expenses									1.3
Equity-based compensation and other items									0.4
Income tax expense									0.5
Net loss									$	(4.6)

Reportable segment information for the nine months ended September 30, 2020 and 2019, is as follows (in millions):

Nine Months Ended September 30, 2020	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	840.9	$	873.4	$	—	$	—	$	1,714.3
Inter-segment sales	41.7		20.5		—		(62.2)		—
Total sales	$	882.6	$	893.9	$	—	$	(62.2)	$	1,714.3
Adjusted EBITDA	$	176.6	$	27.6	$	(54.1)	$	—	$	150.1
Reconciling items to net loss:
Depreciation and amortization	32.6		53.2		5.7		—		91.5
LCM / LIFO loss	13.3		22.2		—		—		35.5
Loss on impairment and disposal of assets	1.5		0.1		5.1		—		6.7
Interest (benefit) expense	(0.1)		—		93.3		—		93.2
Unrealized gain on derivatives	(0.1)		(21.1)		—		—		(21.2)
Other non-recurring expenses									4.3
Equity-based compensation and other items									6.2
Income tax expense									0.8
Net loss									$	(66.9)
Nine Months Ended September 30, 2019	Specialty Products		Fuel Products		Corporate		Eliminations		Consolidated Total
Sales:
External customers	$	1,052.4	$	1,625.4	$	—	$	—	$	2,677.8
Inter-segment sales	67.0		37.7		—		(104.7)		—
Total sales	$	1,119.4	$	1,663.1	$	—	$	(104.7)	$	2,677.8
Income from unconsolidated affiliates	$	3.8	$	—	$	—	$	—	$	3.8
Adjusted EBITDA	$	165.1	$	123.8	$	(76.0)	$	—	$	212.9
Reconciling items to net loss:
Depreciation and amortization	36.6		56.8		5.7		—		99.1
LCM / LIFO gain	(6.2)		(31.7)		—		—		(37.9)
Loss on impairment and disposal of assets	—		11.4		19.7		—		31.1
Interest expense	—		12.7		86.5		—		99.2
Gain on debt extinguishment	—		—		(0.7)		—		(0.7)
Unrealized loss on derivatives	8.1		12.1		—		—		20.2
Other non-recurring expenses									1.3
Gain on sale of unconsolidated affiliate	(1.2)		—		—		—		(1.2)
Equity-based compensation and other items									6.1
Income tax expense									0.7
Net loss									$	(5.0)

Schedule of Major Product Category Sales

The following table sets forth the major product category sales for each of the Specialty products and Fuel products segments for the three months ended September 30, 2020 and 2019 (dollars in millions):

	Three Months Ended September 30,
	2020				2019
Specialty products:
Lubricating oils	$	122.5	21.6	%	$	156.1	16.8	%
Solvents	54.6		9.6	%	86.1		9.3	%
Waxes	33.8		5.9	%	30.1		3.2	%
Packaged and synthetic specialty products	60.9		10.7	%	59.6		6.4	%
Other	9.5		1.7	%	23.9		2.6	%
Total	$	281.3	49.5	%	$	355.8	38.3	%
Fuel products:
Gasoline	$	97.4	17.1	%	$	189.5	20.4	%
Diesel	110.9		19.5	%	225.4		24.2	%
Jet fuel	17.6		3.2	%	39.5		4.3	%
Asphalt, heavy fuel oils and other	60.8		10.7	%	119.4		12.8	%
Total	$	286.7	50.5	%	$	573.8	61.7	%
Consolidated sales	$	568.0	100.0	%	$	929.6	100.0	%

The following table sets forth the major product category sales for the nine months ended September 30, 2020 and 2019 (dollars in millions):

	Nine Months Ended September 30,
	2020				2019
Specialty products:
Lubricating oils	$	352.5	20.6	%	$	460.7	17.2	%
Solvents	179.0		10.4	%	254.2		9.5	%
Waxes	92.2		5.5	%	92.6		3.5	%
Packaged and synthetic specialty products	177.4		10.3	%	180.2		6.7	%
Other	39.8		2.3	%	64.7		2.4	%
Total	$	840.9	49.1	%	$	1,052.4	39.3	%
Fuel products:
Gasoline	$	285.7	16.7	%	$	530.9	19.8	%
Diesel	363.3		21.2	%	669.4		25.0	%
Jet fuel	53.9		3.1	%	100.8		3.8	%
Asphalt, heavy fuel oils and other	170.5		9.9	%	324.3		12.1	%
Total	$	873.4	50.9	%	$	1,625.4	60.7	%
Consolidated sales	$	1,714.3	100.0	%	$	2,677.8	100.0	%

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Fair Value Measurements - Summary of Recurring Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring [Line Items]
Derivative Credit Risk Valuation Adjustment, Derivative Assets	$ 0.0	$ 0.0
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities	0.0	0.0
Assets:
Total derivative assets	(14.9)	(0.9)
Derivative liabilities:
Total derivative liabilities	0.0	7.2
Fair Value, Measurements, Recurring
Assets:
Total derivative assets	(14.9)	(0.9)
Pension plan investments	32.7	32.5
Assets, Fair Value Disclosure	47.6	33.4
Derivative liabilities:
Total derivative liabilities	0.0	7.2
RINs Obligation	(76.1)	(13.0)
Precious metals lease	(5.3)	(5.8)
Liability Awards	(10.1)	(7.4)
Total recurring liabilities at fair value	(91.5)	(33.4)
Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
Pension plan investments	32.7	32.5
Assets, Fair Value Disclosure	32.7	32.5
Derivative liabilities:
Total derivative liabilities	0.0	0.0
RINs Obligation	0.0	0.0
Precious metals lease	(5.3)	(5.8)
Liability Awards	(10.1)	(7.4)
Total recurring liabilities at fair value	(15.4)	(13.2)
Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
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	(76.1)	(13.0)
Precious metals lease	0.0	0.0
Liability Awards	0.0	0.0
Total recurring liabilities at fair value	(76.1)	(13.0)
Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	(14.9)	(0.9)
Pension plan investments	0.0	0.0
Assets, Fair Value Disclosure	14.9	0.9
Derivative liabilities:
Total derivative liabilities	0.0	7.2
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	0.0	(7.2)
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	(0.5)	0.0
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
Natural Gas Swaps [Member] | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	(0.5)	0.0
Inventory Financing Obligations | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	1.9	0.0
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
Inventory Financing Obligations | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	1.9	0.0
Diesel crack spread swaps | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	(5.9)	(0.4)
Diesel crack spread swaps | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
Diesel crack spread swaps | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
Diesel crack spread swaps | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	(5.9)	(0.4)
Diesel-MEH crack spread swap [Member] [Domain] | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	(1.6)	0.0
Diesel-MEH crack spread swap [Member] [Domain] | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
Diesel-MEH crack spread swap [Member] [Domain] | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
Diesel-MEH crack spread swap [Member] [Domain] | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	(1.6)	0.0
WCS crude oil basis swaps | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	(4.2)	1.3
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
WCS crude oil basis swaps | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	(4.2)	1.3
2-1-1- Crack Spread Swap | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	0.0	(0.5)
2-1-1- Crack Spread Swap | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
2-1-1- Crack Spread Swap | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
2-1-1- Crack Spread Swap | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	0.0	(0.5)
Gasoline Crack Spread Swaps | Fair Value, Measurements, Recurring
Assets:
Total derivative assets	(0.8)	(1.3)
Gasoline Crack Spread Swaps | Fair Value, Measurements, Recurring | Level 1
Assets:
Total derivative assets	0.0	0.0
Gasoline Crack Spread Swaps | Fair Value, Measurements, Recurring | Level 2
Assets:
Total derivative assets	0.0	0.0
Gasoline Crack Spread Swaps | Fair Value, Measurements, Recurring | Level 3
Assets:
Total derivative assets	(0.8)	(1.3)
Inventory Financing Obligations | Fair Value, Measurements, Recurring
Derivative liabilities:
Total derivative liabilities	0.0	7.2
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	$ 0.0	$ (7.2)

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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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Realized (gain) loss on derivative instruments	$ 7.9	$ (5.0)	$ 57.7	$ 14.4
Unrealized gain (loss) on derivative instruments	(9.2)	(5.4)	21.2	(20.2)
Level 3
Summary of net changes in fair value of the company's level 3 financial assets and liabilities
Fair value at January 1,			(6.3)	19.8
Realized (gain) loss on derivative instruments			(36.5)	(34.6)
Unrealized gain (loss) on derivative instruments			21.2	(20.2)
Settlements			(36.5)	(34.6)
Fair value at June 30,	$ 14.9	$ (0.4)	14.9	(0.4)
Total gain (loss) included in net loss attributable to changes in unrealized gain relating to financial assets and liabilities held as of June 30,			$ 21.2	$ (20.2)

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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	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset Impairment Charges	$ 6.7
Fair Value [Member] | Level 2
Financial Instrument:
Senior notes	715.7	$ 598.8
Fair Value [Member] | Level 1
Financial Instrument:
Senior notes	441.6	676.4
Fair Value [Member] | Level 3
Financial Instrument:
Finance lease and other obligations	6.6	6.5
Carrying value [Member] | Level 2
Financial Instrument:
Senior notes	740.3	540.5
Carrying value [Member] | Level 1
Financial Instrument:
Senior notes	471.5	668.1
Carrying value [Member] | Level 3
Financial Instrument:
Finance lease and other obligations	6.6	6.5
Revolving Credit Facility | Fair Value [Member] | Level 3
Financial Instrument:
Lines of Credit, Fair Value Disclosure	100.1	0.0
Revolving Credit Facility | Carrying value [Member] | Level 3
Financial Instrument:
Lines of Credit, Fair Value Disclosure	$ 100.1	$ 0.0

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Earnings Per Unit - Summary of Computation of Basic and Diluted Earnings Per Limited Partner Unit (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
General partner’s interest in net loss	$ (1.1)	$ (0.1)	$ (1.3)	$ (0.1)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.0	0.1	0.0	0.1
Continuing Operations
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
General partner’s interest in net loss	$ (1.1)	$ (0.1)	$ 1.3	$ (0.1)

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Segments and Related Information - Schedule of Major Product Category Sales (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Major product category sales
Sales	$ 568.0		$ 1,714.3	$ 2,677.8
Gain (loss) from unconsolidated affiliates				3.8
Adjusted EBITDA	25.4	$ 76.2	150.1	212.9
Depreciation and amortization	30.2	33.5	91.5	99.1
Effect of LIFO liquidation and Inventory write-down	1.1	2.7	35.5	(37.9)
Asset Impairment Charges		3.2	6.7	31.1
Interest expense	33.3	33.8	93.2	99.2
Unrealized (gain) loss on derivatives	9.2	5.4	(21.2)	20.2
Other Nonrecurring (Income) Expense	5.5	1.3	4.3	1.3
Non-cash equity based compensation	2.1	0.4	6.2	6.1
Income tax expense from continuing operations	0.1	0.5	0.8	0.7
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent	(56.1)	(4.6)	(66.9)	(5.0)
(Gain) loss on debt extinguishment	$ 0.0	$ 0.0	$ 0.0	(0.7)
Gain on sale of unconsolidated affiliate				$ (1.2)
Product Concentration Risk [Member]
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	$ 281.3	$ 355.8	$ 840.9	$ 1,052.4
Sales, percentage	49.50%	38.30%	49.10%	39.30%
Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 286.7	$ 573.8	$ 873.4	$ 1,625.4
Sales, percentage	50.50%	61.70%	50.90%	60.70%
Lubricating Oils [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 122.5	$ 156.1	$ 352.5	$ 460.7
Sales, percentage	21.60%	16.80%	20.60%	17.20%
Solvents [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 54.6	$ 86.1	$ 179.0	$ 254.2
Sales, percentage	9.60%	9.30%	10.40%	9.50%
Waxes [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 33.8	$ 30.1	$ 92.2	$ 92.6
Sales, percentage	5.90%	3.20%	5.50%	3.50%
Packaged and Synthetic Specialty Products [Member]
Major product category sales
Sales	$ 60.9	$ 59.6	$ 177.4	$ 180.2
Packaged and Synthetic Specialty Products [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 60.9	$ 59.6	$ 177.4	$ 180.2
Sales, percentage	10.70%	6.40%	10.30%	6.70%
Other [Member]
Major product category sales
Sales	$ 220.4	$ 296.2	$ 663.5	$ 872.2
Other [Member] | Product Concentration Risk [Member] | Specialty Product [Member]
Major product category sales
Sales	$ 9.5	$ 23.9	$ 39.8	$ 64.7
Sales, percentage	1.70%	2.60%	2.30%	2.40%
Gasoline [Member] | Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 97.4	$ 189.5	$ 285.7	$ 530.9
Sales, percentage	17.10%	20.40%	16.70%	19.80%
Diesel [Member] | Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 110.9	$ 225.4	$ 363.3	$ 669.4
Sales, percentage	19.50%	24.20%	21.20%	25.00%
Jet fuel [Member] | Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 17.6	$ 39.5	$ 53.9	$ 100.8
Sales, percentage	3.20%	4.30%	3.10%	3.80%
Asphalt, Heavy Fuel Oils and Other [Member] | Product Concentration Risk [Member] | Fuel Product [Member]
Major product category sales
Sales	$ 60.8	$ 119.4	$ 170.5	$ 324.3
Sales, percentage	10.70%	12.80%	9.90%	12.10%
Oil and Gas, Refining and Marketing [Member]
Major product category sales
Sales	$ 568.0	$ 929.6	$ 1,714.3	$ 2,677.8
Oil and Gas, Refining and Marketing [Member] | Product Concentration Risk [Member]
Major product category sales
Sales	568.0	929.6	1,714.3	2,677.8
Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	294.4	375.6	882.6	1,119.4
Gain (loss) from unconsolidated affiliates				3.8
Adjusted EBITDA	56.0	51.6	176.6	165.1
Depreciation and amortization	10.7	12.9	32.6	36.6
Effect of LIFO liquidation and Inventory write-down	4.7	0.9	(13.3)	6.2
Asset Impairment Charges		0.0	1.5	0.0
Interest expense	(0.1)	0.0	(0.1)	0.0
Unrealized (gain) loss on derivatives	(0.3)	0.0	0.1	(8.1)
(Gain) loss on debt extinguishment				0.0
Gain on sale of unconsolidated affiliate				(1.2)
Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	294.4	588.1	893.9	1,663.1
Gain (loss) from unconsolidated affiliates				0.0
Adjusted EBITDA	(13.5)	47.7	27.6	123.8
Depreciation and amortization	17.6	18.6	53.2	56.8
Effect of LIFO liquidation and Inventory write-down	(5.8)	(3.6)	(22.2)	31.7
Asset Impairment Charges		(0.4)	0.1	11.4
Interest expense		5.6		12.7
Interest Income, Other	(2.1)		0.0
Unrealized (gain) loss on derivatives	9.5	(5.4)	21.1	(12.1)
(Gain) loss on debt extinguishment				0.0
Gain on sale of unconsolidated affiliate				0.0
Operating Segments [Member] | Corporate Segment [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Gain (loss) from unconsolidated affiliates				0.0
Adjusted EBITDA	(17.1)	(23.1)	(54.1)	(76.0)
Depreciation and amortization	1.9	2.0	5.7	5.7
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Asset Impairment Charges		3.6	5.1	19.7
Interest expense	31.3	28.2	93.3	86.5
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
(Gain) loss on debt extinguishment				0.7
Gain on sale of unconsolidated affiliate				0.0
Eliminations [Member]
Major product category sales
Sales	(20.8)
Depreciation and amortization	0.0
Effect of LIFO liquidation and Inventory write-down	0.0
Interest expense	0.0
Unrealized (gain) loss on derivatives	0.0
Eliminations [Member] | Eliminations [Member]
Major product category sales
Sales		(34.1)	(62.2)	(104.7)
Gain (loss) from unconsolidated affiliates				0.0
Adjusted EBITDA	0.0	0.0	0.0	0.0
Depreciation and amortization		0.0	0.0	0.0
Effect of LIFO liquidation and Inventory write-down		0.0	0.0	0.0
Asset Impairment Charges		0.0	0.0	0.0
Interest expense		0.0	0.0	0.0
Unrealized (gain) loss on derivatives		0.0	0.0	0.0
(Gain) loss on debt extinguishment				0.0
Gain on sale of unconsolidated affiliate				0.0
External Customers [Member]
Major product category sales
Sales	568.0	929.6	1,714.3	2,677.8
External Customers [Member] | Operating Segments [Member] | Specialty Product [Member]
Major product category sales
Sales	281.3	355.8	840.9	1,052.4
External Customers [Member] | Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	286.7	573.8	873.4	1,625.4
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] | Eliminations [Member]
Major product category sales
Sales	0.0
External Customers [Member] | Eliminations [Member] | Eliminations [Member]
Major product category sales
Sales		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	13.1	19.8	41.7	67.0
Eliminations [Member] | Operating Segments [Member] | Fuel Product [Member]
Major product category sales
Sales	7.7	14.3	20.5	37.7
Eliminations [Member] | Operating Segments [Member] | Corporate Segment [Member]
Major product category sales
Sales	0.0	0.0	0.0	0.0
Eliminations [Member] | Eliminations [Member]
Major product category sales
Sales	$ (20.8)
Eliminations [Member] | Eliminations [Member] | Eliminations [Member]
Major product category sales
Sales		$ (34.1)	$ (62.2)	$ (104.7)

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Description of the Business

9 Months Ended

Sep. 30, 2020

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 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 September 30, 2020, the Company had 78,055,816 limited partner common units and 1,592,974 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 is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, white mineral oils, solvents, petrolatums, waxes, synthetic lubricants, packaged fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and heavy fuel oils. The Company is based in Indianapolis, Indiana and owns and leases specialty and fuel products facilities, primarily related to production and marketing of specialty and fuel products, throughout the United States.

The unaudited condensed consolidated financial statements of the Company as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019, 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 nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s 2019 Annual Report on Form 10-K.

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Summary of 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.

Other Current Liabilities

Other current liabilities consisted of the following (in millions):

	September 30, 2020		December 31, 2019
RINs Obligation	$	76.1	$	13.0
Transition Services Agreement Payable	—		19.8
Net working capital adjustment liabilities	—		6.9
Other	26.9		18.9
Total other current liabilities	$	103.0	$	58.6

The Company’s Renewable Identification Numbers (“RINs”) obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. Environmental Protection Agency (“EPA”) requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard (“RFS”). RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date.

The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RINs spot price. The Company recognizes an asset at the end of each reporting period in which it has generated RINs in excess of its RINs Obligation. The asset is initially recorded at cost at the time the Company acquires them and is subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in cost of sales for the period in the unaudited condensed consolidated statements of operations, with the exception of the RINs for compliance year 2019 related to the San Antonio Refinery, which is reflected in other (income) expense within operating income in the unaudited condensed consolidated statements of operations. The value of RINs in excess of the RINs Obligation, if any, would be reflected in other current assets on the condensed consolidated balance sheet. RINs generated in excess of the Company’s current RINs Obligation may be sold or held to offset future RINs Obligations. Any such sales of excess RINs are recorded in cost of sales in the unaudited condensed consolidated statement 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.

Loss on Impairment and Disposal of Assets

The Company’s unaudited condensed consolidated statements of operations for the three months ended September 30, 2019 included a Loss on impairment and disposal of assets of $3.2 million. The Company did not record a Loss on impairment and disposal of assets for the three months ended September 30, 2020. The Company’s unaudited condensed consolidated statements of operations for the nine months ended September 30, 2020 and 2019 included a Loss on impairment and disposal of assets of $6.7 million and $31.1 million, respectively. For the nine months ended September 30, 2020, Loss on impairment and disposal of assets primarily consisted of a $5.1 million write-off of an other receivable for the remaining payment related to the sale of Anchor Drilling Fluids USA, LLC in 2017 and $1.5 million for the disposal of assets related to Bel-Ray facility (please read Note 13 - “Restructuring” for additional information regarding the Company’s restructuring program). For the nine months ended September 30, 2019, Loss on impairment and disposal of assets consisted of $10.7 million for the Company’s cease of use of the assets associated with the TexStar Midstream Logistics, L.P. Throughput and Deficiency Agreement, $19.7 million in impairment charges for the Company’s investment in Fluid Holding Corp. (“FHC”), and $0.7 million of net losses recorded on other various asset disposals during the period. The fair value of the Loss on impairment and disposal of assets were based on Level 3 inputs.

Adopted Accounting Pronouncements

On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which changed the impairment model for most financial instruments. Previous guidance required the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. Under ASU 2016-13, the Company is required to use a current expected credit loss (“CECL”) model that immediately recognizes an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of the update, including trade receivables. The CECL model uses a broader range of reasonable and supportable information in the development of credit loss estimates. The result of the adoption of ASU 2016-13 was de-minimis and did not result in an adjustment to beginning partners’ capital. The allowance for credit losses for accounts receivable was $0.8 million at September 30, 2020 and $0.9 million at January 1, 2020, respectively.

On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) and all the related amendments to its lease contracts using the modified retrospective method. The effective date was used as the Company’s date of initial application with no restatement of prior periods. Please read Note 5 - “Leases” for further information.

On January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Given the Company’s current risk management strategy of not designating any of its derivative positions as hedges, the adoption of this guidance had no effect on the Company’s unaudited condensed consolidated financial statements. If, in the future, the Company decides to modify its hedging strategies, this new accounting guidance would become applicable and will be applied at that time.

On January 1, 2019, the Company adopted ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-07”). This update simplifies the guidance related to non-employee share-based payments by superseding ASC 505-50 and expanding the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. Prior to the issuance of this standard update, non-employee share-based payments were subject to ASC 505-50 requirements while employee share-based payments were subject to ASC 718 requirements. The adoption of ASU 2018-07 had no impact on the Company’s unaudited condensed consolidated financial statements.

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Revenue Recognition Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

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, Revenue from Contracts with Customers, 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 is engaged in the production and marketing of crude oil-based specialty products including lubricating oils, solvents, waxes, synthetic lubricants and other products which comprise the specialty products segment. The Company is also engaged in the production of fuel and fuel related products including gasoline, diesel, jet fuel, asphalt and other products which comprise the fuel products segment.

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.

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.

Disaggregation of Revenue

The following table reflects the disaggregation of revenue by major source (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Sales by major source
Standard specialty products	$	220.4	$	296.2	$	663.5	$	872.2
Packaged and synthetic specialty products	60.9		59.6		177.4		180.2
Total specialty products	281.3		355.8		840.9		1,052.4
Fuel and fuel related products	238.8		508.4		743.2		1,446.3
Asphalt	47.9		65.4		130.2		179.1
Total fuel products	286.7		573.8		873.4		1,625.4
Total sales	$	568.0	$	929.6	$	1,714.3	$	2,677.8

Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. 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 continues 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 and warranties as variable consideration when determining the transaction price.

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 September 30, 2020 and December 31, 2019 were $161.1 million and $175.0 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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Inventories

9 Months Ended

Sep. 30, 2020

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 nine months ended September 30, 2020, 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. The Company recorded no activity during the three months ended September 30, 2019, while the Company recorded a $0.9 million increase in cost of sales as a result of such activity during the nine months ended September 30, 2019.

Costs include crude oil and other feedstocks, labor, processing costs and refining overhead costs. Inventories are valued at the lower of cost or market value. The replacement cost of these inventories, based on current market values, would have been $20.0 million lower and $17.7 million higher as of September 30, 2020 and December 31, 2019, 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. The crude oil remains in the legal title of Macquarie and is stored in the Company’s refinery storage tanks governed by storage agreements. Legal title to the crude oil passes to the Company at the storage tank outlet for processing into refined products. After processing, Macquarie takes title to the refined products stored in the Company’s storage tanks until sold to third parties. 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. The Company is obligated to repurchase the inventory in certain scenarios.

Inventories consist of the following (in millions):

	September 30, 2020						December 31, 2019
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	29.1	$	10.2	$	39.3	$	48.3	$	11.6	$	59.9
Work in process	30.7		22.6		53.3		35.0		29.1		64.1
Finished goods	105.3		32.9		138.2		124.8		43.8		168.6
	$	165.1	$	65.7	$	230.8	$	208.1	$	84.5	$	292.6

(1)Amounts represent LIFO value and do not necessarily represent the value of product financing. 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 September 30, 2020 and 2019, the Company recorded an increase in the LCM valuation reserve of $1.1 million and $2.7 million, respectively, in cost of sales, as a result of decreasing market prices. During the nine months ended September 30, 2020 and 2019, the Company recorded an increase of $35.3 million and a decrease of $38.8 million, respectively, in cost of sales due to the sale of inventory previously adjusted through the LCM valuation.

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Leases (Notes)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

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 15 years, some of which include options to extend the lease for up to 35 years, and others of which include options to terminate the lease within one year.

Supplemental balance sheet information related to the Company’s leases as of September 30, 2020 and December 31, 2019, were as follows (in millions):

		September 30, 2020		December 31, 2019
Assets:	Classification:
Operating lease assets	Operating lease right-of-use assets (1)	$	66.4	$	93.1
Finance lease assets	Property, plant and equipment, net (2)	4.2		3.2
Total leased assets		$	70.6	$	96.3
Liabilities:
Current
Operating	Current portion of operating lease liabilities (1)	$	26.4	$	60.6
Finance	Current portion of long-term debt	0.6		0.3
Non-current
Operating	Long-term operating lease liabilities (1)	40.5		33.0
Finance	Long-term debt, less current portion	3.3		2.4
Total lease liabilities		$	70.8	$	96.3

(1)In the third quarter of 2020, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $20.3 million.

(2)Finance lease assets are recorded net of accumulated amortization of $3.2 million and $7.1 million as of September 30, 2020 and December 31, 2019, 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 three and nine months ended September 30, 2020 and 2019 were as follows (in millions).

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Costs:	Classification:	2020		2019		2020		2019
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	10.3	$	16.7	$	36.4	$	50.4
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.7		2.2		6.9		5.6
Variable operating lease cost (2) (3)	Cost of Sales; SG&A Expenses	0.4		0.4		1.7		1.1
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.1		0.4		0.4		1.1
Interest on lease liabilities	Interest expense	0.1		0.2		0.3		1.3
Total lease cost		$	12.6	$	19.9	$	45.7	$	59.5

(1)The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

(2)Approximately $0.8 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively, of the Company’s variable operating lease cost relates to its lease agreement with Phillips 66 associated with the LVT unit at its Lake Charles, Louisiana refinery (the “LVT Agreement”). Pursuant to the LVT Agreement, Phillips 66 is obligated to supply a minimum supply quantity which the Company agreed to purchase through December 31, 2020. Pricing for the agreement is indexed to the prior month’s average of Platts Mid USGC 55 Grade Jet Kero price on the day of loading plus a specified margin. Phillips 66 invoices the Company for the estimated volume of product to be purchased by the Company based on a supplied forecast and differences between actual volumes purchased and the estimated volume of product originally billed, which makes up the variable component of the operating lease contract. There were no variable operating lease costs related to the LVT Agreement for the three months ended September 30, 2020 and 2019, respectively.

(3)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 September 30, 2020, 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
2020	$	16.2	$	0.2	$	16.4
2021	17.8		0.9		18.7
2022	13.9		0.9		14.8
2023	10.4		0.9		11.3
2024	6.9		0.9		7.8
Thereafter	13.8		1.1		14.9
Total	$	79.0	$	4.9	$	83.9
Less: Interest	12.1		1.0		13.1
Present value of lease liabilities	$	66.9	$	3.9	$	70.8

(1)As of September 30, 2020, 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 September 30, 2020.

(2)As of September 30, 2020, 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 September 30, 2020.

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:

	September 30, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	4.2
Finance leases	5.6
Weighted-average discount rate:
Operating leases	7.7	%
Finance leases	7.4	%

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and ContingenciesFrom 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 crude oil and specialty hydrocarbon 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.

Cotton Valley, Princeton and Shreveport Refineries

Since 2013, the Louisiana Department of Environmental Quality (“LDEQ”) has issued Consolidated Compliance Orders & Notices of Proposed Penalties to the Cotton Valley, Princeton and Shreveport refineries relating to various alleged air quality and wastewater regulatory violations. The Company has responded to the various orders. The Company and LDEQ have reached a tentative agreement to resolve the applicable matters, which would require that the Company pay a penalty of approximately $0.1 million. The Company is working with LDEQ to formalize the settlement. The Company expects that the amount of the penalty contained in the final settlement will not be material to its financial position or results of operations and any conditions established by LDEQ on the Company’s operations will not be material to the Company’s operations.

Renewable Identification Numbers Obligation

As of September 30, 2020 and December 31, 2019, the Company had a RINs Obligation of $76.1 million and $13.0 million, respectively.

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

On October 31, 2018, the Company received an indemnity claim notice (the “Claim Notice”) from Husky Superior Refining Holding Corp. (“Husky”) under the Membership Interest Purchase Agreement, dated August 11, 2017 (the “MIPA”), which was entered into in connection with the disposition of the Superior Refinery. The Claim Notice relates to alleged losses Husky incurred in connection with a fire at the Husky Superior refinery on April 26, 2018, over five months after Calumet sold Husky 100% of the membership interests in the entity that owns the Husky Superior refinery. Calumet understands the fire occurred during a turnaround of the Husky Superior refinery at a time when Husky owned, operated, and supervised the refinery. Calumet was not involved with the turnaround. The U.S. Chemical Safety and Hazard Investigation Board (“CSB”) is currently investigating the fire. The CSB has not suggested that Calumet is responsible for the fire. Husky’s Claim Notice alleges that Husky “has become aware of facts which may give rise to losses” for which it reserved the right to seek indemnification at a later date. The Claim Notice further alleges breaches of certain representations, warranties, and covenants contained in the MIPA. We believe that the information currently available about the fire and the CSB investigation does not support Husky’s threatened claims, and Husky has not filed a lawsuit against Calumet. If Husky were to seek recourse under the MIPA for such claims, they would be subject to certain limits on indemnification liability that may reduce or eliminate any potential indemnification liability.

Beginning in 2017, the Company initiated the first of several claims in Cascade County Circuit Court against the Montana Department of Revenue to recover overpaid taxes resulting from the county’s excessive property tax assessment of the Company’s Great Falls refinery for the 2017, 2018, and 2019 tax years. As of September 30, 2020, the county has refunded, as the result of various court decisions, $6.0 million in excessive taxes and interest to the Company. The claims arising from the 2017, 2018, and 2019 tax years are closed. The $6.0 million was recorded as a reduction of taxes other than income taxes for the nine month period ended September 30, 2020.

The Company is subject to other 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 September 30, 2020 and December 31, 2019, the Company had outstanding standby letters of credit of $29.7 million and $42.5 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 September 30, 2020 and December 31, 2019, 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 $300.0 million, which may be increased with the consent of the Agent (as defined in the Credit Agreement) to 90% of revolver commitments then in effect ($600.0 million at September 30, 2020 and December 31, 2019).

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 September 30, 2020, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2020	$	1.0
2021	3.9
2022	3.9
2023	3.9
2024	4.0
Thereafter	10.0
Total (1)	$	26.7

(1)As of September 30, 2020, 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

9 Months Ended

Sep. 30, 2020

Other Commitments [Abstract]

Inventory Financing Agreement

Inventory Financing Agreements

On March 31, 2017, the Company entered into several agreements with Macquarie to support the operations of the Great Falls refinery (the “Great Falls Supply and Offtake Agreements”). On July 27, 2017, the Company amended the Great Falls Supply and Offtake Agreements to provide Macquarie the option to terminate the Great Falls Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Great Falls Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Great Falls Supply and Offtake Agreements) from September 30, 2019 to June 30, 2023.

On June 19, 2017, the Company entered into several agreements with Macquarie to support the operations of the Shreveport refinery (the “Shreveport Supply and Offtake Agreements” and together with the Great Falls Supply and Offtake Agreements, the “Supply and Offtake Agreements”). Since inception, the Shreveport Supply and Offtake Agreements were set to expire on June 30, 2020; however, Macquarie has the option to terminate the Shreveport Supply and Offtake Agreements effective nine months after the end of the applicable calendar quarter in which Macquarie elects to terminate and the Company has the option to terminate with ninety days’ notice at any time. On May 9, 2019, the Company entered into an amendment to the Shreveport Supply and Offtake Agreements to, among other things, extend the Expiration Date (as defined in the Shreveport Supply and Offtake Agreements) from June 30, 2020 to 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. The Company agreed to purchase the crude oil on a just-in-time basis to support the production operations at the Great Falls and Shreveport refineries. Additionally, the Company agreed to sell, and Macquarie agreed to buy, at market prices, refined products produced at the Great Falls and Shreveport refineries. For Shreveport, finished products consisting of finished fuel products (other than jet fuel), lubricants and waxes, Macquarie may (but is not required to) sell such products to the sales intermediation party (“SIP”), and the SIP may (but is not required to) sell such products to Shreveport, as applicable, for sale in turn to third parties. For jet fuel and certain intermediate products, Macquarie may (but is not required to) sell such products to Shreveport for sale thereby to third parties. The Company will then repurchase the refined products from Macquarie or the SIP prior to selling the refined products to third parties.

The Supply and Offtake Agreements are subject to minimum and maximum inventory levels. The agreements also provide for the lease to Macquarie of crude oil and certain refined product storage tanks located at the Great Falls and Shreveport refineries and certain offsite locations. Following expiration or termination of the agreements, Macquarie has the option to require the Company to purchase the crude oil and refined product inventories then owned by Macquarie and located at the leased storage tanks at then current market prices. In addition, barrels owned by the Company are pledged as collateral to support the Deferred Payment Arrangement (defined below) obligations under these agreements.

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. Each reporting period, the Company records liabilities in an amount equal to the amount the Company expects to pay to repurchase the inventory held by Macquarie based on market prices at the termination date included in obligations under inventory financing agreements in the condensed consolidated balance sheets. The Company has determined that the redemption feature on the initially recognized liabilities 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 gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations. For more information on the valuation of the associated derivatives, please read Note 9 - “Derivatives” and Note 10 - “Fair Value Measurements.” The embedded derivatives will be recorded in obligations under inventory financing agreements on the condensed consolidated balance sheets. The cash flow impact of the embedded derivatives will be classified as a change in unrealized (gain) loss on derivative instruments in the operating activities section in the unaudited condensed consolidated statements of cash flows.

For the three months ended September 30, 2020 and 2019, the Company incurred expenses of $1.2 million and $5.6 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 nine months ended September 30, 2020 and 2019, the Company received a $2.0 million benefit and incurred an $11.7 million expense, 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 $11.1 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 September 30, 2020 and December 31, 2019, the Company had $16.1 million and $26.3 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 September 30, 2020.

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Long-Term Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

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

	September 30, 2020		December 31, 2019
Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rates of 2.6% and 4.3% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively	$	100.1	$	—
Borrowings under the 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.1% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively. (1)	150.7		351.1
Borrowings under the 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.1% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.	325.0		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 9.4% for the nine months ended September 30, 2020.	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 11.3% and 11.2% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.	550.0		550.0
Other	2.7		3.8
Finance lease obligations, at various interest rates, interest and monthly principal payments	3.9		2.7
Less unamortized debt issuance costs (2)	(14.9)		(18.4)
Less unamortized discounts	(2.1)		(2.9)
Total debt	$	1,315.4	$	1,211.3
Less current portion of long-term debt	2.1		1.8
Total long-term debt	$	1,313.3	$	1,209.5

(1)The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively.

(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 $19.2 million and $15.7 million at September 30, 2020 and December 31, 2019, respectively.

Senior Notes

On August 5, 2020, the Company consummated a transaction whereby it exchanged approximately $200.0 million aggregate principal amount of its outstanding 7.625% Senior Notes due 2022 (the “2022 Notes”) for $200.0 million aggregate principal amount of newly issued 9.25% Senior Secured First Lien Notes due 2024 (the “2024 Secured Notes”) (the “Exchange Transaction”). In connection with the Exchange Transaction, the Company incurred $5.4 million of fees.

In accordance with SEC Rule 3-10 of Regulation S-X, consolidated financial statements of non-guarantors are not required. The Company has no material assets or operations independent of its subsidiaries. Obligations under the 2022 Notes, its 7.75% Senior Notes due 2023 (the “2023 Notes”), the 2024 Secured Notes and its 11.00% Senior Notes due 2025 (the “2025 Notes” and, together with the 2022 Notes, the 2023 Notes and the 2024 Secured Notes, the “Senior Notes”) are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis (except the 2024 Secured Notes are fully and unconditionally and jointly and severally guaranteed on a senior secured first lien basis) by the Company’s current 100%-owned operating subsidiaries and certain of the Company’s future operating subsidiaries, with the exception of the Company’s “minor” subsidiaries (as defined by Rule 3-10 of Regulation S-X), including Calumet Finance Corp. (100%-owned Delaware corporation that was organized for the sole purpose of being a co-issuer of certain of the Company’s indebtedness, including the Senior Notes). There are no significant restrictions on the ability of the Company or subsidiary guarantors for the Company to obtain funds from its subsidiary guarantors by dividend or loan. None of the subsidiary guarantors’ assets represent restricted assets pursuant to SEC Rule 4-08(e)(3) of Regulation S-X.

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 September 30, 2020, the Company’s Fixed Charge Coverage Ratio (as defined in the indentures governing the Senior Notes) was 1.6. As of September 30, 2020, the Company was in compliance with all covenants under the indentures governing the Senior Notes.

Paycheck Protection Program Notes

In April 2020, the Company entered into several Paycheck Protection Program Notes (the “Term Notes”) with BMO Harris Bank National Association and Star Financial Bank as the lenders (“Lenders”) in an aggregate principal amount of $31.4 million pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company subsequently repaid the Term Notes in full on May 18, 2020.

Third Amended and Restated Senior Secured Revolving Credit Facility

On February 23, 2018, the Company entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”) governing its senior secured revolving credit facility maturing in February 2023, which provides maximum availability of credit under the revolving credit facility of $600.0 million, subject to borrowing base limitations, and includes a $500.0 million incremental uncommitted expansion feature. The revolving credit facility includes a $25.0 million senior secured first loaned in and last to be repaid out (“FILO”) revolving credit facility limited by a FILO borrowing base calculation. The FILO commitment reduces ratably each quarter starting in November 2019 and ending in August 2020. The reductions in FILO commitments convert to revolving credit facility base commitments over the same period. Lenders under the revolving credit facility have a first priority lien on, among other things, the Company’s accounts receivable and inventory and substantially all of its cash.

On September 4, 2019, the Company entered into the First Amendment to the Credit Agreement (the “First Amendment”). The amendment expanded the borrowing base by $99.6 million effective October 11, 2019, by adding the fixed assets of the Company’s Great Falls, MT refinery as collateral to the borrowing base. The $99.6 million expansion amortizes to zero on a straight-line basis over ten quarters starting in the first quarter of 2020. Additionally, while the fixed assets of the Great Falls, MT refinery are included in the borrowing base, the First Amendment provides for a 25 basis points increase in the applicable margin for loans, as well as increases in the minimum availability under the revolving credit facility required for the Company to be able to perform certain actions, including to make restricted payments of other distributions, sell or dispose of certain assets, make acquisitions or investments, or prepay other indebtedness.

The revolving credit facility, which is the Company’s primary source of liquidity for cash needs in excess of cash generated from operations, bears interest at a rate equal to prime plus a basis points margin or LIBOR plus a basis points margin, at the Company’s option.

The margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows:

	Base Loans		FILO Loans
Quarterly Average Availability Percentage	Prime Rate Margin	LIBOR Rate Margin	Prime Rate Margin	LIBOR Rate Margin
≥ 66%	0.50%	1.50%	1.50%	2.50%
≥ 33% and < 66%	0.75%	1.75%	1.75%	2.75%
< 33%	1.00%	2.00%	2.00%	3.00%

The Credit Agreement provides for a 25 basis point reduction in the applicable margin rates beginning in the quarter after our Leverage Ratio (as defined in the Credit Agreement) is less than 5.5 to 1.0. As of September 30, 2020, the interest has been determined based on a margin of 50 basis points for prime rate based revolver loans, 150 basis points for LIBOR based rate revolver loans, 150 basis points for prime rate based FILO loans and 250 basis points for LIBOR based FILO loans. The margin can fluctuate quarterly based on our average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter. Following the October 11, 2019 effective date of the First Amendment, the applicable margin rates are increased by 25 basis points for as long as the Great Falls, MT refinery assets are contributing to the borrowing base. Letters of credit issued under the revolving credit facility accrue fees at a rate equal to the margin (measured in basis points) applicable to LIBOR revolver loans.

In addition to paying interest quarterly on outstanding borrowings under the revolving credit facility, the Company is required to pay a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.250% or 0.375% per annum depending on the average daily available unused borrowing capacity for the preceding month. The Company also pays a customary letter of credit fee, including a fronting fee of 0.125% per annum of the stated amount of each outstanding letter of credit, and customary agency fees.

The borrowing base under the revolving credit facility at September 30, 2020 was approximately $289.7 million. As of September 30, 2020, the Company had $100.1 million of outstanding borrowings under the revolving credit facility and outstanding standby letters of credit of $29.7 million, leaving approximately $159.9 million available for additional borrowings based on specified availability limitations. Lenders under the revolving credit facility have a first priority lien on the Company’s accounts receivable, inventory and substantially all of its cash.

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 sum of the greater of (i) 10% of the borrowing base then in effect, or 15% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), plus the amount of FILO loans outstanding, 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 September 30, 2020, the Company was in compliance with all covenants under the revolving credit facility.

Maturities of Long-Term Debt

As of September 30, 2020, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2020	$	0.6
2021	2.9
2022	150.6
2023	425.8
2024	200.8
Thereafter	551.0
Total	$	1,331.7

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Restructuring (Notes)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring

On January 21, 2020, the Company committed to a cost reduction plan to reduce overall operating expenses, including the reduction of outside services, facility fixed costs, and corporate staffing costs (the “Cost Reduction Plan”). These cost reductions are designed to right-size general and administrative spending and are consistent with Phase II of the Company’s previously announced self-help program.

The Company eliminated 50 general and administrative, primarily corporate positions as part of the Cost Reduction Plan through the third quarter of 2020. The Company has offered one-time termination benefits to the affected employees including cash severance payments, health care, and outplacement services. The Company paid $0.9 million for these costs for the nine months ended September 30, 2020.

On February 2, 2020, the Company announced to its employees at the Bel-Ray facility in Wall Township, New Jersey, which was included in our Specialty Products segment that it would cease production and close the facility in the second quarter of 2020. Actual production at the Bel-Ray facility ceased in March 2020. This action resulted in the elimination of 49 positions. The Company expects to incur approximately $6.0 million in total exit costs, fixed asset impairments, termination benefits, and severance costs associated with the closure. The majority of these costs are expected to result in cash expenditures that will be paid out primarily in 2020.

Charges related to restructuring are reflected in the Cost of sales, Selling, and General and administrative lines of the unaudited condensed consolidated statements of operations. The Company recorded $0.7 million to Cost of sales for the three months ended September 30, 2020 and $3.8 million for the nine months ended September 30, 2020. The Company recorded $0.1 million and $1.0 million, respectively, to the Selling and General and administrative lines of the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2020. Fixed asset impairments are reflected in the Loss on impairment and disposal of assets line of the unaudited condensed consolidated statements of operations.

The following table displays the reconciliation of the beginning and ending liability balances (in millions):

	Employee Termination Benefits		Exit Costs		Total
Balance at December 31, 2019	$	—	$	—	$	—
Charges to restructuring	0.8		1.3		2.1
Cash Payments and other	(0.4)		(1.1)		(1.5)
Balance at March 31, 2020	$	0.4	$	0.2	$	0.6
Charges to restructuring	0.9		1.0		1.9
Cash Payments and other	(0.8)		(0.7)		(1.5)
Balance at June 30, 2020	$	0.5	$	0.5	$	1.0
Charges to restructuring	0.3		0.5		0.8
Cash Payments and other	(0.6)		(0.7)		(1.3)
Balance at September 30, 2020	$	0.2	$	0.3	$	0.5

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Investment in Unconsolidated Affiliates

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Investment Holdings

Investment in Unconsolidated Affiliates

Biosyn Holdings, LLC and Biosynthetic Technologies

In February 2018, the Company and The Heritage Group formed Biosyn Holdings, LLC (“Biosyn”) for the purpose of acquiring Biosynthetic Technologies, LLC (“Biosynthetic Technologies”), a startup company which developed an intellectual property portfolio for the manufacture of renewable-based and biodegradable esters. In March 2019, the Company sold its investment in Biosyn to The Heritage Group, a related party, for total proceeds of $5.0 million which was recorded in the “other” component of other income (expense) on the unaudited condensed consolidated statement of operations. Prior to the sale of Biosyn, the Company accounted for its ownership in Biosyn under the equity method of accounting.

Fluid Holding Corp.

In connection with the Anchor Transaction completed in November of 2017, the Company received a 10% investment in FHC as part of the total consideration for Anchor. FHC provides oilfield services and products to customers globally. The Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company recorded this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer.

During the second quarter of 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $25.4 million after evaluating indicators of impairment and valuing the investment using projected future cash flows and other Level 3 inputs. Utilizing an income approach, value indicators 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 company. As a result, the Company recorded an impairment charge of $16.1 million, which is included in Loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019.

During the third quarter of 2019, the Company determined the fair value of its investment in FHC was less than its carrying value of $9.3 million, as a result of a preferred stock issuance by FHC, which diluted the Company’s ownership percentage. As a result, the Company recorded an impairment charge of $3.6 million in Loss on impairment and disposal of assets in the unaudited condensed consolidated statements of operations for the three months ended September 30, 2019 and a $19.7 million impairment charge for the nine months ended September 30, 2019. During the second quarter of 2020, FHC became the subject of receivership in Canada.

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Subsequent Events (Notes)	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent EventsAs of November 1, 2020, the fair value of the Company’s derivatives have increased by approximately $5.3 million subsequent to September 30, 2020.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

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. Each reporting period, the Company records liabilities in an amount equal to the amount the Company expects to pay to repurchase the inventory held by Macquarie based on market prices at the termination date included in obligations under inventory financing agreements in the condensed consolidated balance sheets. The Company has determined that the redemption feature on the initially recognized liabilities 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 gain (loss) on derivative instruments in the Company’s unaudited condensed consolidated statements of operations.The embedded derivatives will be recorded in obligations under inventory financing agreements on the condensed consolidated balance sheets. The cash flow impact of the embedded derivatives will be classified as a change in unrealized (gain) loss on derivative instruments in the operating activities section in the unaudited condensed consolidated statements of cash flows.

Basis of Accounting

The unaudited condensed consolidated financial statements of the Company as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019, 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.

RINS Obligation

The Company’s Renewable Identification Numbers (“RINs”) obligation (“RINs Obligation”) represents a liability for the purchase of RINs to satisfy the U.S. Environmental Protection Agency (“EPA”) requirement to blend biofuels into the fuel products it produces pursuant to the EPA’s Renewable Fuel Standard (“RFS”). RINs are assigned to biofuels produced in the U.S. as required by the EPA. The EPA sets annual quotas for the percentage of biofuels that must be blended into transportation fuels consumed in the U.S. and, as a producer of motor fuels from petroleum, the Company is required to blend biofuels into the fuel products it produces at a rate that will meet the EPA’s annual quota. To the extent the Company is unable to blend biofuels at that rate, it must purchase RINs in the open market to satisfy the annual requirement. The Company’s RINs Obligation is based on the amount of RINs it must purchase and the price of those RINs as of the balance sheet date.The Company uses the inventory model to account for RINs, measuring acquired RINs at weighted-average cost. The cost of RINs used each period is charged to cost of sales with cash inflows and outflows recorded in the operating cash flow section of the unaudited condensed consolidated statements of cash flows. The liability is calculated by multiplying the RINs shortage (based on actual results) by the period end RINs spot price. The Company recognizes an asset at the end of each reporting period in which it has generated RINs in excess of its RINs Obligation. The asset is initially recorded at cost at the time the Company acquires them and is subsequently revalued at the lower of cost or market as of the last day of each accounting period and the resulting adjustments are reflected in cost of sales for the period in the unaudited condensed consolidated statements of operations, with the exception of the RINs for compliance year 2019 related to the San Antonio Refinery, which is reflected in other (income) expense within operating income in the unaudited condensed consolidated statements of operations. The value of RINs in excess of the RINs Obligation, if any, would be reflected in other current assets on the condensed consolidated balance sheet. RINs generated in excess of the Company’s current RINs Obligation may be sold or held to offset future RINs Obligations. Any such sales of excess RINs are recorded in cost of sales in the unaudited condensed consolidated statement of operations. The liabilities associated with the Company’s RINs Obligation are considered recurring fair value measurements.

New Accounting Pronouncements

On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) which changed the impairment model for most financial instruments. Previous guidance required the recognition of credit losses based on an incurred loss impairment methodology that reflects losses once the losses are probable. Under ASU 2016-13, the Company is required to use a current expected credit loss (“CECL”) model that immediately recognizes an estimate of credit losses that are expected to occur over the life of the financial instruments that are in the scope of the update, including trade receivables. The CECL model uses a broader range of reasonable and supportable information in the development of credit loss estimates. The result of the adoption of ASU 2016-13 was de-minimis and did not result in an adjustment to beginning partners’ capital. The allowance for credit losses for accounts receivable was $0.8 million at September 30, 2020 and $0.9 million at January 1, 2020, respectively.

On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) and all the related amendments to its lease contracts using the modified retrospective method. The effective date was used as the Company’s date of initial application with no restatement of prior periods. Please read Note 5 - “Leases” for further information.

On January 1, 2019, the Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the financial reporting of hedging relationships to better align risk management activities in financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Given the Company’s current risk management strategy of not designating any of its derivative positions as hedges, the adoption of this guidance had no effect on the Company’s unaudited condensed consolidated financial statements. If, in the future, the Company decides to modify its hedging strategies, this new accounting guidance would become applicable and will be applied at that time.

On January 1, 2019, the Company adopted ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting (“ASU 2018-07”). This update simplifies the guidance related to non-employee share-based payments by superseding ASC 505-50 and expanding the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from both non-employees and employees. Prior to the issuance of this standard update, non-employee share-based payments were subject to ASC 505-50 requirements while employee share-based payments were subject to ASC 718 requirements. The adoption of ASU 2018-07 had no impact on the Company’s unaudited condensed consolidated financial statements.

Revenue from Contract with Customer [Policy Text Block]

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, Revenue from Contracts with Customers, 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.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.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 are deemed to be fulfillment activities rather than a separate distinct performance obligation.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.Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. 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 continues 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 and warranties as variable consideration when determining the transaction price.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.

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 lower of cost or market value.

Derivatives

The Company is exposed to price risks due to fluctuations in the price of crude oil, refined products (primarily in the Company’s fuel products segment), 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 Gain (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 current 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.To manage credit risk, the Company selects and periodically reviews counterparties based on credit ratings.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.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.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 a change in derivative activity 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 Gain (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 Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations. The Company has entered into natural gas swaps, gasoline swaps, diesel swaps and certain 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 natural gas, crude oil, gasoline and diesel.

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 quoted prices from an independent pricing service.The fair value of precious metals leases is based upon unadjusted exchange-quoted prices and is, therefore, classified within Level 1 of the fair value hierarchy.All settlements from derivative instruments not designated as hedges are recorded in Gain (loss) on derivative instruments in the unaudited condensed consolidated statements of operations.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. Assets and liabilities acquired in business combinations are recorded at their fair value as of the date of acquisition.

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 Company’s investment in FHC is a non-marketable equity security without a readily determinable fair value. The Company recorded this investment using a measurement alternative which measures the security at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes with a same or similar security from the same issuer. The investment in FHC is recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. If an observable price adjustment or impairment is recognized, the Company would classify this asset as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.The carrying value of cash and cash equivalents is each considered to be representative of its fair value.The estimated aggregate fair value of the Company’s senior notes defined as Level 1 was based upon quoted market prices in an active market. The estimated fair value of the Company’s 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, finance lease obligations and other obligations approximate their fair values as determined by discounted cash flows and 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 makers (“CODM”). The Company’s operations are managed by the CODM using the following reportable segments:

•Specialty Products. The specialty products segment produces a variety of lubricating oils, solvents, waxes, synthetic lubricants and other products which are sold to customers who purchase these products primarily as raw material components for industrial, consumer and automotive goods. Specialty products also include synthetic lubricants used in manufacturing, mining and automotive applications.

•Fuel Products. The fuel products segment produces primarily gasoline, diesel, jet fuel, and asphalt which are primarily sold to customers located in the PADD 3 and PADD 4 areas within the U.S.

•Corporate. The corporate segment primarily consists of general and administrative expenses not allocated to the Specialty Products or Fuel Products segments.

During the first quarter of 2020, the CODM changed the definition and calculation of Adjusted EBITDA, which is used by the Company for evaluating performance, allocating resources and managing the business. The revised definition and calculation of Adjusted EBITDA now includes LCM inventory adjustments and LIFO adjustments, (see items (g) and (h) below,) which were previously excluded. This revised definition and calculation better reflects the performance of the Company’s business segments including cash flows. Adjusted EBITDA has been revised for all periods presented to consistently reflect this change.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies as disclosed in Note 2 — “Summary of Significant Accounting Policies,” of the Company’s 2019 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 refined 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, premiums and penalties; (f) any net loss realized in connection with an asset sale that was deducted in computing net income (loss); (g) LCM inventory adjustments; (h) the impact of liquidation of inventory layers calculated using the LIFO method; and (i) all extraordinary, unusual or non-recurring items of gain or loss, or revenue or expense.

The Company manages its assets on a total company basis, not by segment. Therefore, management does not review any asset information by segment and, accordingly, the Company does not report asset information by segment.

The Company offers specialty products primarily in categories consisting of lubricating oils, solvents, waxes, packaged and synthetic specialty products and other. Fuel products categories primarily consist of gasoline, diesel, jet fuel, asphalt, heavy fuel oils and other.

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Revenue Recognition Shipping and Handling (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Revenue from Contract with Customer [Policy Text Block]	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, Revenue from Contracts with Customers, 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.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.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 are deemed to be fulfillment activities rather than a separate distinct performance obligation.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.Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; recognition generally occurs with the transfer of control at a point in time. 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 continues 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 and warranties as variable consideration when determining the transaction price.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.

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Leases (Policies)	9 Months Ended
	Sep. 30, 2020
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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Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Other Current Liabilities [Table Text Block]

Other current liabilities consisted of the following (in millions):

	September 30, 2020		December 31, 2019
RINs Obligation	$	76.1	$	13.0
Transition Services Agreement Payable	—		19.8
Net working capital adjustment liabilities	—		6.9
Other	26.9		18.9
Total other current liabilities	$	103.0	$	58.6

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Revenue Recognition Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table reflects the disaggregation of revenue by major source (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Sales by major source
Standard specialty products	$	220.4	$	296.2	$	663.5	$	872.2
Packaged and synthetic specialty products	60.9		59.6		177.4		180.2
Total specialty products	281.3		355.8		840.9		1,052.4
Fuel and fuel related products	238.8		508.4		743.2		1,446.3
Asphalt	47.9		65.4		130.2		179.1
Total fuel products	286.7		573.8		873.4		1,625.4
Total sales	$	568.0	$	929.6	$	1,714.3	$	2,677.8

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Inventories (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Summary of Inventories

Inventories consist of the following (in millions):

	September 30, 2020						December 31, 2019
	Titled Inventory		Supply and Offtake Agreements (1)		Total		Titled Inventory		Supply and Offtake Agreements (1)		Total
Raw materials	$	29.1	$	10.2	$	39.3	$	48.3	$	11.6	$	59.9
Work in process	30.7		22.6		53.3		35.0		29.1		64.1
Finished goods	105.3		32.9		138.2		124.8		43.8		168.6
	$	165.1	$	65.7	$	230.8	$	208.1	$	84.5	$	292.6

(1)Amounts represent LIFO value and do not necessarily represent the value of product financing. Please read Note 7 - “Inventory Financing Agreements” for further information.

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Leases (Tables)

9 Months Ended

Sep. 30, 2020

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:

	September 30, 2020
Lease Term and Discount Rate:
Weighted-average remaining lease term (years):
Operating leases	4.2
Finance leases	5.6
Weighted-average discount rate:
Operating leases	7.7	%
Finance leases	7.4	%

Leases - Maturity of Lease Liabilities [Table Text Block]

As of September 30, 2020, 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
2020	$	16.2	$	0.2	$	16.4
2021	17.8		0.9		18.7
2022	13.9		0.9		14.8
2023	10.4		0.9		11.3
2024	6.9		0.9		7.8
Thereafter	13.8		1.1		14.9
Total	$	79.0	$	4.9	$	83.9
Less: Interest	12.1		1.0		13.1
Present value of lease liabilities	$	66.9	$	3.9	$	70.8

(1)As of September 30, 2020, 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 September 30, 2020.

(2)As of September 30, 2020, 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 September 30, 2020.

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

Supplemental balance sheet information related to the Company’s leases as of September 30, 2020 and December 31, 2019, were as follows (in millions):

		September 30, 2020		December 31, 2019
Assets:	Classification:
Operating lease assets	Operating lease right-of-use assets (1)	$	66.4	$	93.1
Finance lease assets	Property, plant and equipment, net (2)	4.2		3.2
Total leased assets		$	70.6	$	96.3
Liabilities:
Current
Operating	Current portion of operating lease liabilities (1)	$	26.4	$	60.6
Finance	Current portion of long-term debt	0.6		0.3
Non-current
Operating	Long-term operating lease liabilities (1)	40.5		33.0
Finance	Long-term debt, less current portion	3.3		2.4
Total lease liabilities		$	70.8	$	96.3

(1)In the third quarter of 2020, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $20.3 million.

(2)Finance lease assets are recorded net of accumulated amortization of $3.2 million and $7.1 million as of September 30, 2020 and December 31, 2019, respectively.

Lease, Cost [Table Text Block]

The components of lease expense related to the Company’s leases for the three and nine months ended September 30, 2020 and 2019 were as follows (in millions).

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease Costs:	Classification:	2020		2019		2020		2019
Fixed operating lease cost	Cost of Sales; SG&A Expenses	$	10.3	$	16.7	$	36.4	$	50.4
Short-term operating lease cost (1)	Cost of Sales; SG&A Expenses	1.7		2.2		6.9		5.6
Variable operating lease cost (2) (3)	Cost of Sales; SG&A Expenses	0.4		0.4		1.7		1.1
Finance lease cost:
Amortization of finance lease assets	Cost of Sales	0.1		0.4		0.4		1.1
Interest on lease liabilities	Interest expense	0.1		0.2		0.3		1.3
Total lease cost		$	12.6	$	19.9	$	45.7	$	59.5

(1)The Company’s leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets.

(2)Approximately $0.8 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively, of the Company’s variable operating lease cost relates to its lease agreement with Phillips 66 associated with the LVT unit at its Lake Charles, Louisiana refinery (the “LVT Agreement”). Pursuant to the LVT Agreement, Phillips 66 is obligated to supply a minimum supply quantity which the Company agreed to purchase through December 31, 2020. Pricing for the agreement is indexed to the prior month’s average of Platts Mid USGC 55 Grade Jet Kero price on the day of loading plus a specified margin. Phillips 66 invoices the Company for the estimated volume of product to be purchased by the Company based on a supplied forecast and differences between actual volumes purchased and the estimated volume of product originally billed, which makes up the variable component of the operating lease contract. There were no variable operating lease costs related to the LVT Agreement for the three months ended September 30, 2020 and 2019, respectively.

(3)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)

9 Months Ended

Sep. 30, 2020

Debt Instrument [Line Items]

Summary of Long-Term Debt

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

	September 30, 2020		December 31, 2019
Borrowings under third amended and restated senior secured revolving credit agreement with third-party lenders, interest payments quarterly, borrowings due February 2023, weighted average interest rates of 2.6% and 4.3% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively	$	100.1	$	—
Borrowings under the 2022 Notes, interest at a fixed rate of 7.625%, interest payments semiannually, borrowings due January 2022, effective interest rate of 8.1% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively. (1)	150.7		351.1
Borrowings under the 2023 Notes, interest at a fixed rate of 7.75%, interest payments semiannually, borrowings due April 2023, effective interest rate of 8.1% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.	325.0		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 9.4% for the nine months ended September 30, 2020.	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 11.3% and 11.2% for the nine months ended September 30, 2020 and the year ended December 31, 2019, respectively.	550.0		550.0
Other	2.7		3.8
Finance lease obligations, at various interest rates, interest and monthly principal payments	3.9		2.7
Less unamortized debt issuance costs (2)	(14.9)		(18.4)
Less unamortized discounts	(2.1)		(2.9)
Total debt	$	1,315.4	$	1,211.3
Less current portion of long-term debt	2.1		1.8
Total long-term debt	$	1,313.3	$	1,209.5

(1)The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively.

(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 $19.2 million and $15.7 million at September 30, 2020 and December 31, 2019, respectively.

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

As of September 30, 2020, principal payments on debt obligations and future minimum rentals on finance lease obligations are as follows (in millions):

Year	Maturity
2020	$	0.6
2021	2.9
2022	150.6
2023	425.8
2024	200.8
Thereafter	551.0
Total	$	1,331.7

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Long-Term Debt Quarterly Average Availability Percentage (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt Instrument Basis Spread [Table Text Block]

The margin can fluctuate quarterly based on the Company’s average availability for additional borrowings under the revolving credit facility in the preceding calendar quarter as follows:

	Base Loans		FILO Loans
Quarterly Average Availability Percentage	Prime Rate Margin	LIBOR Rate Margin	Prime Rate Margin	LIBOR Rate Margin
≥ 66%	0.50%	1.50%	1.50%	2.50%
≥ 33% and < 66%	0.75%	1.75%	1.75%	2.75%
< 33%	1.00%	2.00%	2.00%	3.00%

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Derivatives (Tables)

9 Months Ended

Sep. 30, 2020

Derivative [Line Items]

Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets

The following tables summarize the Company’s gross fair values of its derivative instruments, presenting the impact of offsetting derivative assets in the Company’s condensed consolidated balance sheets (in millions):

		September 30, 2020						December 31, 2019
	Balance Sheet Location	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets
Derivative instruments not designated as hedges:
Specialty products segment:
Natural gas swaps	Derivative assets	$	0.1	$	—	$	0.1	$	—	$	—	$	—
Fuel products segment:
Inventory financing obligation	Obligations under inventory financing agreements	$	1.9	$	—	$	1.9	$	—	$	—	$	—
WCS crude oil basis swaps	Derivative assets	4.3		(0.1)		4.2		—		(1.3)		(1.3)
Gasoline crack spread swaps	Derivative assets	0.8		—		0.8		1.8		(0.5)		1.3
Diesel crack spread swaps	Derivative assets	5.9		—		5.9		0.9		(0.5)		0.4
Diesel-MEH crack spread swaps	Derivative assets	1.6		—		1.6		—		—		—
2/1/1 crack spread swaps	Derivative assets	—		—		—		0.5		—		0.5
Natural gas swaps	Derivative assets	0.4		—		0.4		—		—		—
Total derivative instruments		$	15.0	$	(0.1)	$	14.9	$	3.2	$	(2.3)	$	0.9

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):

		September 30, 2020						December 31, 2019
	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:
Fuel products segment:
Inventory financing obligation	Obligations under inventory financing agreements	$	—	$	—	$	—	$	(7.2)	$	—	$	(7.2)
WCS crude oil basis swaps	Other current liabilities	(0.1)		0.1		—		(1.3)		1.3		—
Gasoline crack spread swaps	Other current liabilities	—		—		—		(0.5)		0.5		—
Diesel crack spread swaps	Other current liabilities	—		—		—		(0.5)		0.5		—
Total derivative instruments		$	(0.1)	$	0.1	$	—	$	(9.5)	$	2.3	$	(7.2)

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 September 30, 2020 and 2019, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain on Derivative Instruments
	Three Months Ended September 30,				Three Months Ended September 30,
	2020		2019		2020		2019
Specialty products segment:
Natural gas swaps	$	0.1	$	—	$	0.3	$	—
Fuel products segment:
Inventory financing obligation	—		—		(2.5)		(5.5)
WCS crude oil basis swaps	8.3		—		(0.7)		—
WCS crude oil percentage basis swaps	—		0.1		—		(0.3)
Gasoline swaps	—		—		—		0.1
Gasoline crack spread swaps	2.6		—		(3.8)		—
2/1/1 crack spread swaps	—		—		—		0.3
Diesel crack spread swaps	5.1		0.3		(3.6)		0.2
Diesel percentage basis crack spread swaps	—		—		—		(0.2)
Diesel-MEH crack spread swaps	1.0		—		0.7		—
Natural gas swaps	—		—		0.4		—
Total	$	17.1	$	0.4	$	(9.2)	$	(5.4)

The Company recorded the following gains (losses) in its unaudited condensed consolidated statements of operations for the nine months ended September 30, 2020 and 2019, related to its derivative instruments not designated as hedges (in millions):

Type of Derivative	Amount of Realized Gain (Loss) Recognized in Gain on Derivative Instruments				Amount of Unrealized Gain (Loss) Recognized in Gain on Derivative Instruments
	Nine Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Specialty products segment:
Natural gas swaps	$	(0.5)	$	—	$	0.1	$	—
Midland crude oil basis swaps	—		1.6		—		(1.0)
Fuel products segment:
Inventory financing obligation	—		—		9.2		(2.7)
WCS crude oil basis swaps	12.9		17.1		5.4		(14.9)
WCS crude oil percentage basis swaps	—		1.0		—		6.0
Midland crude oil basis swaps	—		9.0		—		(7.1)
Gasoline swaps	—		—		—		0.1
Gasoline crack spread swaps	8.1		—		(0.5)		—
2/1/1 crack spread swaps	2.0		—		(0.5)		0.3
Diesel crack spread swaps	13.0		6.4		5.5		(7.2)
Diesel-MEH crack spread swaps	1.0		—		1.6		—
Diesel percentage basis crack spread swaps	—		(0.5)		—		6.3
Natural gas swaps	—		—		0.4		—
Total	$	36.5	$	34.6	$	21.2	$	(20.2)

WCS crude oil basis swaps | Fuel Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2020, the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges:

WCS Crude Oil Basis Swap Contracts by Expiration Dates	Barrels Purchased	BPD	Average Differential to NYMEX WTI ($/Bbl)
Fourth Quarter 2020 (1)	1,610,000	17,500	$	(15.02)
First Quarter 2021	900,000	10,000	$	(13.92)
Total	2,510,000
Average differential			$	(14.62)

(1) The volumes include 418,500 barrels of WCS crude oil basis purchases that settled at $(14.88)/Bbl average differential to NYMEX WTI in the quarter ended September 30, 2020.

At December 31, 2019, the Company had the following derivatives related to WCS crude oil basis purchases in its fuel products segment, none of which are designated as hedges:

WCS Crude Oil Basis Swap Contracts by Expiration Dates	Barrels Purchased	BPD	Average Differential to NYMEX WTI ($/Bbl)
First Quarter 2020	544,000	5,978	$	(18.92)
Total	544,000
Average differential			$	(18.92)

Diesel crack spread swaps | Fuel Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2020, the Company had the following derivatives related to diesel crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Diesel Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
Fourth Quarter 2020	368,000	4,000	$	21.91
Total	368,000
Average price			$	21.91

At December 31, 2019, the Company had the following derivatives related to diesel crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Diesel Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
First Quarter 2020	500,500	5,500	$	22.15
Second Quarter 2020	379,000	4,165	$	21.68
Third Quarter 2020	368,000	4,000	$	22.23
Fourth Quarter 2020	368,000	4,000	$	21.91
Total	1,615,500
Average price			$	22.00

Gasoline Crack Spread Swaps | Fuel Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2020, the Company had the following derivatives related to gasoline crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Gasoline Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
Fourth Quarter 2020	368,000	4,000	$	9.77
Total	368,000
Average price			$	9.77

At December 31, 2019, the Company had the following derivatives related to gasoline crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Gasoline Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
First Quarter 2020	591,500	6,500	$	12.54
Second Quarter 2020	379,000	4,165	$	16.41
Third Quarter 2020	368,000	4,000	$	15.24
Fourth Quarter 2020	368,000	4,000	$	9.77
Total	1,706,500
Average price			$	13.38

2-1-1- Crack Spread Swap | Fuel Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2020, the Company had no derivatives related to 2/1/1 crack spread swap sales in its fuel products segment.

At December 31, 2019, the Company had the following derivatives related to 2/1/1 crack spread swap sales in its fuel products segment, none of which are designated as hedges:

2/1/1 Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
First Quarter 2020	364,000	4,000	$	17.43
Second Quarter 2020	30,000	330	$	19.50
Total	394,000
Average price			$	17.58

Natural Gas Swaps [Member] | Specialty Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2020, the Company had the following derivatives related to natural gas swap purchases in its specialty products segment, none of which are designated as hedges:

Natural Gas Swap Contracts by Expiration Dates	MMBtu Purchased	Average Swap ($/MMBtu)
Fourth Quarter 2020 (1)	1,518,000	$	2.25
Total	1,518,000
Average price		$	2.25

(1) These volumes include 511,500 MMBtu of natural gas swap purchases that settled at $2.12/MMBtu average swap price to NYMEX Henry Hub in the quarter ended September 30, 2020.

At December 31, 2019, the Company had no derivatives related to natural gas swap purchases in its specialty products segment.

Diesel-MEH crack spread swap [Member] [Domain] | Fuel Product [Member]

Derivative [Line Items]

Schedule of Derivative Positions

At September 30, 2020, the Company had the following derivatives related to diesel - MEH crack spread swap sales in its fuel products segment, none of which are designated as hedges:

Diesel - MEH Crack Spread Swap Contracts by Expiration Dates	Barrels Sold	BPD	Average Swap ($/Bbl)
Fourth Quarter 2020	368,000	4,000	$	9.51
Total	368,000
Average price			$	9.51

At December 31, 2019, the Company had no derivatives related to diesel - MEH crack spread swap sales in its fuel products segment.

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Restructuring (Tables)

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs [Table Text Block]

The following table displays the reconciliation of the beginning and ending liability balances (in millions):

	Employee Termination Benefits		Exit Costs		Total
Balance at December 31, 2019	$	—	$	—	$	—
Charges to restructuring	0.8		1.3		2.1
Cash Payments and other	(0.4)		(1.1)		(1.5)
Balance at March 31, 2020	$	0.4	$	0.2	$	0.6
Charges to restructuring	0.9		1.0		1.9
Cash Payments and other	(0.8)		(0.7)		(1.5)
Balance at June 30, 2020	$	0.5	$	0.5	$	1.0
Charges to restructuring	0.3		0.5		0.8
Cash Payments and other	(0.6)		(0.7)		(1.3)
Balance at September 30, 2020	$	0.2	$	0.3	$	0.5

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Description of the Business - Narrative (Details) - shares	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Limited Partner
Capital Unit [Line Items]
Limited Partners' Capital Account, Units Outstanding	78,055,816	77,560,355
General Partner
Capital Unit [Line Items]
General Partners' Capital Account, Units Outstanding	1,592,974
CLMT General Partner [Member] | General Partner
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	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	$ 3.2	$ 6.7	$ 31.1
Gain (Loss) on Disposition of Assets		(6.7)	(31.1)
RINs Obligation		76.1		$ 13.0
Other Sundry Liabilities, Noncurrent		0.0		19.8
Disposal Group, Including Discontinued Operation, Consideration, Working Capital Adjustment		0.0		6.9
Other		26.9		18.9
Derivative Liability		0.0		7.2
Total other current liabilities		103.0		$ 58.6
Fuel Product [Member]
Property, Plant and Equipment [Line Items]
Gain (Loss) on Disposition of Assets			0.7
Fuel Product [Member] | TexStar [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets			10.7
Operating Segments [Member] | Corporate Segment [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	3.6	5.1	19.7
Operating Segments [Member] | Specialty Product [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	0.0	1.5	0.0
Operating Segments [Member] | Fuel Product [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	(0.4)	$ 0.1	11.4
Fluid Holding Corp [Member]
Property, Plant and Equipment [Line Items]
Loss on impairment and disposal of assets	$ 3.6		$ 19.7

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Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Sales by major source	$ 568.0		$ 1,714.3	$ 2,677.8
Standard specialty products
Disaggregation of Revenue [Line Items]
Sales by major source	220.4	$ 296.2	663.5	872.2
Packaged and synthetic specialty products
Disaggregation of Revenue [Line Items]
Sales by major source	60.9	59.6	177.4	180.2
Specialty Product [Member]
Disaggregation of Revenue [Line Items]
Sales by major source	281.3	355.8	840.9	1,052.4
Fuel and fuel related products
Disaggregation of Revenue [Line Items]
Sales by major source	238.8	508.4	743.2	1,446.3
Asphalt
Disaggregation of Revenue [Line Items]
Sales by major source	47.9	65.4	130.2	179.1
Fuel Product [Member]
Disaggregation of Revenue [Line Items]
Sales by major source	286.7	573.8	873.4	1,625.4
Total Sales
Disaggregation of Revenue [Line Items]
Sales by major source	$ 568.0	$ 929.6	$ 1,714.3	$ 2,677.8

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Inventories - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory method			last-in, first-out (“LIFO”)
Effect of LIFO Inventory Liquidation on Income		$ 0.0	$ 0.0	$ (0.9)
Replacement cost under stated LIFO value	$ 20.0		20.0
Replacement cost of inventories, based on current market values					$ (17.7)
Lower of cost or market inventory adjustment	$ (1.1)	$ (2.7)	$ (35.3)	$ 38.8

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Inventories - Summary of Inventories (Details) - USD ($) $ in Millions		Sep. 30, 2020	Dec. 31, 2019
Inventories
Raw materials		$ 39.3	$ 59.9
Work in process		53.3	64.1
Finished goods		138.2	168.6
Total Inventories		230.8	292.6
Titled Inventory
Inventories
Raw materials		29.1	48.3
Work in process		30.7	35.0
Finished goods		105.3	124.8
Total Inventories		165.1	208.1
Supply&Offtake Agreements
Inventories
Raw materials	[1]	10.2	11.6
Work in process	[1]	22.6	29.1
Finished goods	[1]	32.9	43.8
Total Inventories	[1]	$ 65.7	$ 84.5

[1] Amounts represent LIFO value and do not necessarily represent the value of product financing. Please read Note 7 - “Inventory Financing Agreements” for further information.

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Leases Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Finance Lease, Right-of-Use Asset, Accumulated Amortization		$ 3.2		$ 7.1
Lessee, Finance Lease, Option to Extend		no
Lease, Practical Expedients, Package [true false]		true
Lease, Practical Expedient, Use of Hindsight [true false]		false
LVT Variable Operating Costs	$ 0.0	$ 0.8	$ 0.5
Minimum [Member]
Lessee, Finance Lease, Renewal Term		1 year
Maximum [Member]
Lessee, Finance Lease, Renewal Term		15 years
Lessee, Finance Lease, Option to Extend		35 years

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Leases Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Operating Lease Assets	[1]	$ 66.4	$ 93.1
Finance Lease Assets	[2]	4.2	3.2
Total Leased Asset		70.6	96.3
Current portion of operating lease liabilities	[1]	26.4	60.6
Current portion of finance leases		0.6	0.3
Long-term operating lease liabilities	[1]	40.5	33.0
Long-term finance lease liabilities		3.3	2.4
Total Lease Liability		70.8	96.3
Lease, Operating Right-of-Use Asset and liability additions		20.3
Finance Lease, Accumulated Amortization		$ 3.2	$ 7.1

[1] In the third quarter of 2020, the Company had additions to its operating lease right-of-use assets and operating lease liabilities of approximately $20.3 million.

[2] Finance lease assets are recorded net of accumulated amortization of $3.2 million and $7.1 million as of September 30, 2020 and December 31, 2019, respectively.

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Leases Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Fixed operating lease cost	$ 10.3	$ 16.7	$ 36.4	$ 50.4
Short-term Operating Lease Cost	1.7	2.2	6.9	5.6
Variable Operating Lease Cost	0.4	0.4	1.7	1.1
Finance Lease Amortization of ROU Asset	0.1	0.4	0.4	1.1
Interest on lease liabilities	0.1	0.2	0.3	1.3
Total Lease Cost	$ 12.6	19.9	45.7	59.5
LVT Variable Operating Costs		$ 0.0	$ 0.8	$ 0.5

XML

Leases Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Leases [Abstract]
2019	[1]	$ 16.2		$ 16.2
2020	[1]	17.8		17.8
2021	[1]	13.9		13.9
2022	[1]	10.4		10.4
2023	[1]	6.9		6.9
Total Operating Lease Payments	[1]	79.0		79.0
Less: Interest	[1]	12.1		12.1
Present value of operating lease liabilities	[1]	66.9		66.9
Operating Lease Material Option to Extend			$ 0.0	$ 0.8	$ 0.5
Operating Lease, Lease Not yet Commenced, Description				no
2019	[2]	0.2		$ 0.2
2020	[2]	0.9		0.9
2021	[2]	0.9		0.9
2022	[2]	0.9		0.9
2023	[2]	0.9		0.9
Total Finance Lease Payments	[2]	4.9		4.9
Less: Interest	[2]	1.0		1.0
Present value of Finance Lease Liability	[2]	3.9		$ 3.9
Finance Lease Material Option to Extend				no
Finance Lease, Lease Not yet Commenced, Description				no
2019		16.4		$ 16.4
2020		18.7		18.7
2021		14.8		14.8
2022		11.3		11.3
2023		7.8		7.8
Thereafter		14.9		14.9
Total Lease Liability, Payments due		83.9		83.9
Less: Total Interest		13.1		13.1
Present Value of Total Lease Liability		$ 70.8		70.8		$ 96.3
LVT Variable Operating Cost		no
Total Lease Liability		$ 70.8		70.8		$ 96.3
Lessee, Operating Lease, Liability, to be Paid, after Year Four		13.8		13.8
Finance Lease, Liability, to be Paid, after Year Four	[2]	1.1		1.1
Lease Arrangement, Types [Domain]
Leases [Abstract]
Present Value of Total Lease Liability		70.8		70.8
Total Lease Liability		$ 70.8		$ 70.8

[1] As of September 30, 2020, 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 September 30, 2020.

[2] As of September 30, 2020, 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 September 30, 2020.

XML

Leases Leases - Lease Term and Discount Rate (Details)	Sep. 30, 2020
Leases [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	4 years 2 months 12 days
Finance Lease, Weighted Average Remaining Lease Term	5 years 7 months 6 days
Operating Lease, Weighted Average Discount Rate, Percent	7.70%
Finance Lease, Weighted Average Discount Rate, Percent	7.40%

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Commitments and Contingencies - Narrative - Environmental (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
shreveport [Member]
Loss Contingencies [Line Items]
Environmental Applicability, Impact and Conclusion Disclosures	$ 0.1
Fair Value, Measurements, Recurring
Loss Contingencies [Line Items]
RINs Obligation	(76.1)	$ (13.0)
Fair Value, Measurements, Recurring | Level 2
Loss Contingencies [Line Items]
RINs Obligation	$ (76.1)	$ (13.0)

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Commitments and Contingencies Commitments and Contingencies - Narrative -Standby Letters of Credit (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Revolving Credit Facility
Loss Contingencies [Line Items]
Outstanding standby letters of credit	$ 29.7	$ 42.5
Revolver commitments	$ 600.0	$ 600.0
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	$ 300.0	$ 300.0

XML

Commitments and Contingencies Commitments and Contingencies - Narrative - Other Matters, Claims and Legal Proceedings (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
Loss Contingencies [Line Items]
Montana Department of Revenue tax refund judgment	$ 6.0
Montana Department of Revenue total refund judgment received	$ 6.0

XML

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

9 Months Ended

Sep. 30, 2020

USD ($)

bbl

Commitments and Contingencies Disclosure [Abstract]

Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block]

As of September 30, 2020, the estimated minimum unconditional purchase commitments, including the capital recovery charge, under the agreement were as follows (in millions):

Year	Commitment
2020	$	1.0
2021	3.9
2022	3.9
2023	3.9
2024	4.0
Thereafter	10.0
Total (1)	$	26.7

(1)As of September 30, 2020, 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

$ 26.7

^[1]

2020

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

1.0

2021

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

3.9

2022

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

3.9

2023

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

3.9

2024

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

4.0

Thereafter

Long-term Purchase Commitment [Line Items]

Purchase Commitment, Remaining Minimum Amount Committed

$ 10.0

[1] As of September 30, 2020, 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		9 Months Ended
	May 09, 2019	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Jun. 19, 2017 barrelsPerDay	Mar. 31, 2017 barrelsPerDay
Oil and Gas, Delivery Commitment [Line Items]
Financing costs		$ 33.3	$ 33.8	$ 93.2	$ 99.2
Obligations under inventory financing agreements		89.2		$ 89.2		$ 134.3
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 Income, Other		(1.2)		$ (2.0)
Financing costs			$ 5.6		$ 11.7
Deferred payment arrangement, maximum percentage of eligible inventory				90.00%
Deferred payment arrangement, outstanding amount		16.1		$ 16.1		$ 26.3
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		$ 11.1		$ 11.1
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			9 Months Ended	12 Months Ended
		Feb. 23, 2018	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 159.9
Senior Notes [Abstract]
Other			2.7	$ 3.8
Less unamortized debt issuance costs	[1]		(14.9)	(18.4)
Total long-term debt			1,315.4	1,211.3
Less current portion of long-term debt			2.1	1.8
Total long-term debt, excluding current portion			1,313.3	1,209.5
Revolving Credit Facility
Debt Instrument [Line Items]
Maturity date		Feb. 23, 2023
Long-term Line of Credit			$ 100.1	$ 0.0
Senior Notes [Abstract]
Weighted average interest rate			2.80%	4.30%
7.625% Notes
Summary of Long-term debt
Borrowings under Notes	[2]		$ 150.7	$ 351.1
Senior Notes [Abstract]
Fixed rate			7.625%	7.625%
Effective interest rate			8.10%	8.10%
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments
Summary of Long-term debt
Borrowings under Notes			$ 325.0	$ 325.0
Senior Notes [Abstract]
Fixed rate			7.75%	7.75%
Effective interest rate			8.10%	8.10%
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]
Finance lease obligations, at various interest rates, interest and monthly principal payments			3.9	2.7
Less unamortized discounts
Senior Notes [Abstract]
Less unamortized discounts			$ (2.1)	$ (2.9)
Notes due April twenty twenty-five at Eleven percent interest payments [Member]
Senior Notes [Abstract]
Fixed rate			11.00%	11.00%
Effective interest rate			11.30%	11.20%
Notes Due April Two Thousand Two Four at Fixed Rate of Nine Point Two Five Percentage Interest Payments
Summary of Long-term debt
Borrowings under Notes			$ 200.0	$ 0.0
Interest Expense | Fair Value Hedging
Senior Notes [Abstract]
Liabilities, fair value adjustment			$ 0.7	$ 1.1

[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 $19.2 million and $15.7 million at September 30, 2020 and December 31, 2019, respectively.

[2] The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively.

XML

Long-Term Debt - Narrative (Details) $ in Millions					3 Months Ended		9 Months Ended
		Oct. 11, 2019 USD ($)	Sep. 04, 2019	Feb. 23, 2018	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Long-Term Debt (Textual) [Abstract]
Accumulated Amortization, Deferred Finance Costs					$ 19.2		$ 19.2		$ 15.7
Gain (Loss) from debt extinguishment					0.0	$ 0.0	0.0	$ 0.7
Repayments of borrowings — senior notes							0.0	$ 137.3
Line of Credit Amendment			Sep. 04, 2019	Feb. 23, 2018
Line of Credit Facility, Collateral		adding the fixed assets of the Company’s Great Falls, MT refinery
FILO Revolver
Long-Term Debt (Textual) [Abstract]
Senior secured revolving credit facility					25.0		25.0
Notes Due April 2023 at Fixed Rate of 7.75% Interest Payments
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent					325.0		325.0		325.0
7.625% Notes
Long-Term Debt (Textual) [Abstract]
Senior Notes, Noncurrent	[1]				150.7		$ 150.7		351.1
Senior Notes | Maximum
Long-Term Debt (Textual) [Abstract]
Fixed charge coverage ratio							1.6
Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Maturity date				Feb. 23, 2023
Frequency of interest payment							quarterly
Senior secured revolving credit facility					600.0		$ 600.0		600.0
Expansion Feature		$ 99.6
Incremental uncommitted expansion feature					$ 500.0		$ 500.0
Consecutive Quarters, Margin Reduction Threshold					5.5		5.5
Customary letter of credit fee, including a fronting fee per annum on the stated amount of each outstanding letter of credit							0.125%
Outstanding standby letters of credit					$ 29.7		$ 29.7		$ 42.5
Financial covenant							if the Company’s availability to borrow loans under the revolving credit facility falls below the sum of the greater of (i) 10% of the borrowing base then in effect, or 15% while the Great Falls, MT refinery is included in the borrowing base, and (ii) $35.0 million (which amount is subject to increase in proportion to revolving commitment increases), plus the amount of FILO loans outstanding, 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					$ 289.7		$ 289.7
Revolving Credit Facility | Maximum
Long-Term Debt (Textual) [Abstract]
Letter of Credit Sublimit					90.00%		90.00%		90.00%
Basis points		25.00%
Unutilized commitments fee to the lender under the revolving credit facility							0.375%
Revolving Credit Facility | Minimum
Long-Term Debt (Textual) [Abstract]
Basis points							25.00%
Unutilized commitments fee to the lender under the revolving credit facility							0.25%
London Interbank Offered Rate (LIBOR) | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							250.00%
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							150.00%
Prime Rate | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							150.00%
Prime Rate | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							50.00%
Quarterly Average Availability Percentage, Range 1 | London Interbank Offered Rate (LIBOR) | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							2.50%
Quarterly Average Availability Percentage, Range 1 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							1.50%
Quarterly Average Availability Percentage, Range 1 | Prime Rate | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							1.50%
Quarterly Average Availability Percentage, Range 1 | Prime Rate | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							0.50%
Quarterly Average Availability Percentage, Range 2 | London Interbank Offered Rate (LIBOR) | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							2.75%
Quarterly Average Availability Percentage, Range 2 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							1.75%
Quarterly Average Availability Percentage, Range 2 | Prime Rate | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							1.75%
Quarterly Average Availability Percentage, Range 2 | Prime Rate | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							0.75%
Quarterly Average Availabiity Percentage, Range 3 | London Interbank Offered Rate (LIBOR) | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							3.00%
Quarterly Average Availabiity Percentage, Range 3 | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							2.00%
Quarterly Average Availabiity Percentage, Range 3 | Prime Rate | FILO Revolver
Long-Term Debt (Textual) [Abstract]
Basis points							2.00%
Quarterly Average Availabiity Percentage, Range 3 | Prime Rate | Revolving Credit Facility
Long-Term Debt (Textual) [Abstract]
Basis points							1.00%

[1] The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively.

XML

Long-Term Debt - Summary of Principal Payments on Debt Obligations and Future Minimum Rentals on Capital Lease Obligations (Details) $ in Millions	Sep. 30, 2020 USD ($)
Maturities of long-term debt
2020	$ 0.6
2021	2.9
2022	150.6
2023	425.8
2024	200.8
Long-term debt	1,331.7
Debt Instrument [Line Items]
Long-Term Debt, Maturity, after Year Four	$ 551.0

XML

Derivatives - Summary of Gross Fair Values of Derivative Instruments, Presenting the Impact of Offsetting Derivative Assets (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	$ 15.0	$ 3.2
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	(0.1)	(2.3)
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	14.9	0.9
Gasoline Crack Spread Swaps | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	0.8	1.8
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	(0.5)
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.8	1.3
WCS crude oil basis swaps | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	4.3	0.0
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	(0.1)	(1.3)
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	4.2	(1.3)
Diesel crack spread swaps | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	5.9	0.9
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	(0.5)
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	5.9	0.4
Diesel-MEH crack spread swap [Member] [Domain] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	1.6	0.0
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.0
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	1.6	0.0
2-1-1- Crack Spread Swap | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	0.0	0.5
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.0
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.5
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | Specialty Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	0.1	0.0
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.0
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.1	0.0
Natural Gas Swaps [Member] | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	0.4	0.0
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.0
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.4	0.0
Inventory Financing Obligations | Not Designated as Hedging Instrument [Member] | Fuel Product [Member]
Offsetting Assets [Line Items]
Gross Amounts of Recognized Assets	1.9	0.0
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.0
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	1.9	0.0
Fair Value, Measurements, Recurring
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	14.9	0.9
Fair Value, Measurements, Recurring | Gasoline Crack Spread Swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.8	1.3
Fair Value, Measurements, Recurring | Inventory Financing Obligations
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	(1.9)	0.0
Fair Value, Measurements, Recurring | WCS crude oil basis swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	4.2	(1.3)
Fair Value, Measurements, Recurring | Diesel crack spread swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	5.9	0.4
Fair Value, Measurements, Recurring | Diesel-MEH crack spread swap [Member] [Domain]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	1.6	0.0
Fair Value, Measurements, Recurring | 2-1-1- Crack Spread Swap
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.5
Fair Value, Measurements, Recurring | Natural Gas Swaps [Member]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.5	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	14.9	0.9
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Gasoline Crack Spread Swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.8	1.3
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Inventory Financing Obligations
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	(1.9)	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | WCS crude oil basis swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	4.2	(1.3)
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Diesel crack spread swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	5.9	0.4
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Diesel-MEH crack spread swap [Member] [Domain]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	1.6	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | 2-1-1- Crack Spread Swap
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.5
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Natural Gas Swaps [Member]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.5	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Gasoline Crack Spread Swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Inventory Financing Obligations
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | WCS crude oil basis swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Diesel crack spread swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Diesel-MEH crack spread swap [Member] [Domain]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | 2-1-1- Crack Spread Swap
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 [Member] | Natural Gas Swaps [Member]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | Gasoline Crack Spread Swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | Inventory Financing Obligations
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | WCS crude oil basis swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | Diesel crack spread swaps
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | Diesel-MEH crack spread swap [Member] [Domain]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | 2-1-1- Crack Spread Swap
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Fair Value, Measurements, Recurring | Level 2 | Natural Gas Swaps [Member]
Offsetting Assets [Line Items]
Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets	$ 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	Sep. 30, 2020	Dec. 31, 2019
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ (0.1)	$ (9.5)
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.1	2.3
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	0.0	(7.2)
Diesel crack spread swaps | Fuel Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	0.0	(0.5)
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.5
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Gasoline Crack Spread Swaps | Fuel Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	0.0	(0.5)
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.5
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
WCS crude oil basis swaps | Fuel Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	(0.1)	(1.3)
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.1	1.3
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	0.0	0.0
Inventory Financing Obligations | Fuel Product [Member] | Not Designated as Hedging Instrument [Member]
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	0.0	(7.2)
Gross Amounts Offset in the Condensed Consolidated Balance Sheets	0.0	0.0
Net Amounts of Liabilities Presented in the Condensed Consolidated Balance Sheets	$ 0.0	$ (7.2)

XML

Derivatives - Schedule of Derivative Instruments (Not Designated as Hedges) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ 17.1	$ 0.4	$ 36.5	$ 34.6
Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(9.2)	(5.4)	21.2	(20.2)
Natural Gas Swaps [Member] | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.1	0.0	(0.5)	0.0
Natural Gas Swaps [Member] | 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	0.1	0.0
Natural Gas Swaps [Member] | Fuel 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
Natural Gas Swaps [Member] | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.4	0.0	0.4	0.0
WCS crude oil basis swaps | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	8.3	0.0	12.9	17.1
WCS crude oil basis swaps | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(0.7)	0.0	5.4	(14.9)
WCS crude oil percentage basis swap | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.1	0.0	1.0
WCS crude oil percentage basis swap | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	(0.3)	0.0	6.0
Midland crude oil basis swap purchases [Member] | Specialty Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)			0.0	1.6
Midland crude oil basis swap purchases [Member] | Specialty Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)			0.0	(1.0)
Midland crude oil basis swap purchases [Member] | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)			0.0	9.0
Midland crude oil basis swap purchases [Member] | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)			0.0	(7.1)
Gasoline Crack Spread Swaps | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	2.6	0.0	8.1	0.0
Gasoline Crack Spread Swaps | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(3.8)	0.0	(0.5)	0.0
2-1-1- Crack Spread Swap | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.0	2.0	0.0
2-1-1- Crack Spread Swap | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.3	(0.5)	0.3
Diesel crack spread swaps | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	5.1	0.3	13.0	6.4
Diesel crack spread swaps | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	(3.6)	0.2	5.5	(7.2)
Diesel percentage basis crack spread swaps | Fuel 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	(0.5)
Diesel percentage basis crack spread swaps | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	(0.2)	0.0	6.3
Diesel-MEH crack spread swap [Member] [Domain] | Fuel Product [Member] | Realized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	1.0	0.0	1.0	0.0
Diesel-MEH crack spread swap [Member] [Domain] | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.7	0.0	1.6	0.0
Gasoline Swap | Fuel 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
Gasoline Swap | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	0.0	0.1	0.0	0.1
Inventory Financing Obligations | Fuel 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 | Fuel Product [Member] | Unrealized Gain (Loss)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss)	$ (2.5)	$ (5.5)	$ 9.2	$ (2.7)

XML

Derivatives Derivatives - Schedule of Derivative Positions (WCS Crude Oil Basis Swaps) (Details) - WCS crude oil basis swaps - Fuel Product [Member] - Not Designated as Hedging Instrument [Member]	Sep. 30, 2020 bbl $ / bbl	Dec. 31, 2019 bbl $ / bbl
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	2,510,000	544,000
Average Swap ($/Bbl) | $ / bbl	(14.62)	(18.92)
First Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		544,000
Barrels per Day Purchased		5,978
Average Swap ($/Bbl) | $ / bbl		(18.92)
Fourth Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	900,000
Barrels per Day Purchased	10,000
Average Swap ($/Bbl) | $ / bbl	(13.92)
Third Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	1,610,000
Barrels per Day Purchased	17,500
Average Swap ($/Bbl) | $ / bbl	(15.02)

XML

Derivatives Derivatives - Schedule of Derivative Positions (Diesel Crack Spread Swaps) (Details) - Diesel crack spread swaps - Fuel Product [Member] - Not Designated as Hedging Instrument [Member]	Sep. 30, 2020 bbl $ / bbl	Dec. 31, 2019 bbl $ / bbl
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	368,000	1,615,500
Average Swap ($/Bbl) | $ / bbl	21.91	22.00
First Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		500,500
Barrels per Day Purchased		5,500
Average Swap ($/Bbl) | $ / bbl		22.15
Second Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		379,000
Barrels per Day Purchased		4,165
Average Swap ($/Bbl) | $ / bbl		21.68
Third Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		368,000
Barrels per Day Purchased		4,000
Average Swap ($/Bbl) | $ / bbl		22.23
Fourth Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	368,000	368,000
Barrels per Day Purchased	4,000	4,000
Average Swap ($/Bbl) | $ / bbl	21.91	21.91

XML

Derivatives Derivatives - Schedule of Derivative Positions (Gasoline Crack Spread Swaps) (Details) - Gasoline Crack Spread Swaps - Not Designated as Hedging Instrument [Member] - Fuel Product [Member]	Sep. 30, 2020 bbl $ / bbl	Dec. 31, 2019 bbl $ / bbl
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	368,000	1,706,500
Average Swap ($/Bbl) | $ / bbl	9.77	13.38
First Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		591,500
Barrels per Day Purchased		6,500
Average Swap ($/Bbl) | $ / bbl		12.54
Second Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		379,000
Barrels per Day Purchased		4,165
Average Swap ($/Bbl) | $ / bbl		16.41
Third Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount		368,000
Barrels per Day Purchased		4,000
Average Swap ($/Bbl) | $ / bbl		15.24
Fourth Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	368,000	368,000
Barrels per Day Purchased	4,000	4,000
Average Swap ($/Bbl) | $ / bbl	9.77	9.77

XML

Derivatives Derivatives - Schedule of Derivative Positions (2/1/1 Crack Spread sales) (Details) - Dec. 31, 2019 - 2-1-1- Crack Spread Swap - Not Designated as Hedging Instrument [Member] - Fuel Product [Member]	bbl	$ / bbl	MMBTU
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	394,000		0
Average Swap ($/Bbl) | $ / bbl		17.58
Second Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	30,000
Barrels per Day Purchased	330
Average Swap ($/Bbl) | $ / bbl		19.50
First Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	364,000
Barrels per Day Purchased	4,000
Average Swap ($/Bbl) | $ / bbl		17.43

XML

Derivatives Derivatives - Schedule of Derivative Positions (Natural Gas) (Details) - Natural Gas Swaps [Member] - Not Designated as Hedging Instrument [Member] - Specialty Product [Member]	Sep. 30, 2020 MMBTU	Sep. 30, 2020 $ / bbl	Dec. 31, 2019 MMBTU
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	1,518,000	2.25	0
Fourth Quarter 2020
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount	1,518,000	2.25

XML

Derivatives - Narrative (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Derivative [Line Items]
Derivative, Collateral, Obligation to Return Cash		$ 0
Total derivative assets		14,900,000		$ 900,000
Derivative, Collateral, Right to Reclaim Securities		0		0
Derivative, Collateral, Obligation to Return Securities				$ 0
Loss on impairment and disposal of assets	$ 3,200,000	$ 6,700,000	$ 31,100,000
Fluid Holding Corp [Member]
Derivative [Line Items]
Loss on impairment and disposal of assets	$ 3,600,000		$ 19,700,000

XML

Derivatives Derivatives - Schedule of positions (Diesel - MEH Crack Spread Swaps) (Details) - Not Designated as Hedging Instrument [Member] - Diesel-MEH crack spread swap [Member] [Domain] - Fuel Product [Member]	Sep. 30, 2020 MMBTU $ / bbl bbl	Dec. 31, 2019 MMBTU
Derivative [Line Items]
Average Swap ($/Bbl) | $ / bbl	9.51
Derivative, Nonmonetary Notional Amount | MMBTU	368,000	0
Fourth Quarter 2020
Derivative [Line Items]
Barrels per Day Purchased | bbl	4,000
Average Swap ($/Bbl) | $ / bbl	9.51
Derivative, Nonmonetary Notional Amount | MMBTU	368,000

XML

Segments and Related Information - Schedule of Reportable Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Sales	$ 568.0		$ 1,714.3	$ 2,677.8
Gain (loss) from unconsolidated affiliates				3.8
Adjusted EBITDA	25.4	$ 76.2	150.1	212.9
Reconciling items to net loss:
Depreciation and amortization	30.2	33.5	91.5	99.1
Effect of LIFO liquidation and Inventory write-down	1.1	2.7	35.5	(37.9)
Gain on sale of unconsolidated affiliate				(1.2)
Unrealized (gain) loss on derivatives	9.2	5.4	(21.2)	20.2
Other Nonrecurring (Income) Expense	5.5	1.3	4.3	1.3
Interest expense	33.3	33.8	93.2	99.2
(Gain) loss on debt extinguishment	0.0	0.0	0.0	(0.7)
Loss on impairment and disposal of assets		3.2	6.7	31.1
Equity-based compensation and other items	2.1	0.4	6.2	6.1
Income tax expense from continuing operations	0.1	0.5	0.8	0.7
Net loss	(56.1)	(4.6)	(66.9)	(5.0)
External Customers [Member]
Segment Reporting Information [Line Items]
Sales	568.0	929.6	1,714.3	2,677.8
Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Operating Segments [Member] | Specialty Product [Member]
Segment Reporting Information [Line Items]
Sales	294.4	375.6	882.6	1,119.4
Gain (loss) from unconsolidated affiliates				3.8
Adjusted EBITDA	56.0	51.6	176.6	165.1
Reconciling items to net loss:
Depreciation and amortization	10.7	12.9	32.6	36.6
Effect of LIFO liquidation and Inventory write-down	4.7	0.9	(13.3)	6.2
Gain on sale of unconsolidated affiliate				(1.2)
Unrealized (gain) loss on derivatives	(0.3)	0.0	0.1	(8.1)
Interest expense	(0.1)	0.0	(0.1)	0.0
(Gain) loss on debt extinguishment				0.0
Loss on impairment and disposal of assets		0.0	1.5	0.0
Operating Segments [Member] | Specialty Product [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	281.3	355.8	840.9	1,052.4
Operating Segments [Member] | Specialty Product [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	13.1	19.8	41.7	67.0
Operating Segments [Member] | Fuel Product [Member]
Segment Reporting Information [Line Items]
Sales	294.4	588.1	893.9	1,663.1
Gain (loss) from unconsolidated affiliates				0.0
Adjusted EBITDA	(13.5)	47.7	27.6	123.8
Reconciling items to net loss:
Depreciation and amortization	17.6	18.6	53.2	56.8
Effect of LIFO liquidation and Inventory write-down	(5.8)	(3.6)	(22.2)	31.7
Gain on sale of unconsolidated affiliate				0.0
Unrealized (gain) loss on derivatives	9.5	(5.4)	21.1	(12.1)
Interest expense		5.6		12.7
Interest Income, Other	2.1		0.0
(Gain) loss on debt extinguishment				0.0
Loss on impairment and disposal of assets		(0.4)	0.1	11.4
Operating Segments [Member] | Fuel Product [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	286.7	573.8	873.4	1,625.4
Operating Segments [Member] | Fuel Product [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	7.7	14.3	20.5	37.7
Operating Segments [Member] | Corporate Segment [Member]
Segment Reporting Information [Line Items]
Sales	0.0	0.0	0.0	0.0
Gain (loss) from unconsolidated affiliates				0.0
Adjusted EBITDA	(17.1)	(23.1)	(54.1)	(76.0)
Reconciling items to net loss:
Depreciation and amortization	1.9	2.0	5.7	5.7
Effect of LIFO liquidation and Inventory write-down	0.0	0.0	0.0	0.0
Gain on sale of unconsolidated affiliate				0.0
Unrealized (gain) loss on derivatives	0.0	0.0	0.0	0.0
Interest expense	31.3	28.2	93.3	86.5
(Gain) loss on debt extinguishment				0.7
Loss on impairment and disposal of assets		3.6	5.1	19.7
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
Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	(20.8)
Reconciling items to net loss:
Depreciation and amortization	0.0
Effect of LIFO liquidation and Inventory write-down	0.0
Unrealized (gain) loss on derivatives	0.0
Interest expense	0.0
Eliminations [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales	0.0
Eliminations [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	(20.8)
Eliminations [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales		(34.1)	(62.2)	(104.7)
Gain (loss) from unconsolidated affiliates				0.0
Adjusted EBITDA	0.0	0.0	0.0	0.0
Reconciling items to net loss:
Depreciation and amortization		0.0	0.0	0.0
Effect of LIFO liquidation and Inventory write-down		0.0	0.0	0.0
Gain on sale of unconsolidated affiliate				0.0
Unrealized (gain) loss on derivatives		0.0	0.0	0.0
Interest expense		0.0	0.0	0.0
(Gain) loss on debt extinguishment				0.0
Loss on impairment and disposal of assets		0.0	0.0	0.0
Eliminations [Member] | Eliminations [Member] | External Customers [Member]
Segment Reporting Information [Line Items]
Sales		0.0	0.0	0.0
Eliminations [Member] | Eliminations [Member] | Eliminations [Member]
Segment Reporting Information [Line Items]
Sales		(34.1)	(62.2)	(104.7)
Oil and Gas, Refining and Marketing [Member]
Segment Reporting Information [Line Items]
Sales	$ 568.0	$ 929.6	$ 1,714.3	$ 2,677.8

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Segments and Related Information - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020 supplier	Sep. 30, 2019 supplier	Sep. 30, 2020	Sep. 30, 2019 supplier
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	2	2
Disclosure on Geographic Areas, Description of Revenue from External Customers	10.0	10.0	ten percent	10.0
Supplier Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of crude oil supply from 2 suppliers			60.30%	67.50%

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Restructuring (Details)	Jan. 21, 2020
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities, Initiation Date	Jan. 21, 2020

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Restructuring Restructuring Narrative (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
	Jan. 21, 2020	Sep. 30, 2020	Sep. 30, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Activities, Initiation Date	Jan. 21, 2020
Costs and Expenses		$ 0.7	$ 3.8
Selling, General and Administrative Expense		0.1	1.0
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost Remaining		$ 6.0	$ 6.0
Restructuring and Related Activities, Initiation Date	Feb. 02, 2020
Restructuring and Related Cost, Description			elimination of 49 positions
Corporate Segment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Incurred Cost			$ 0.9
Restructuring and Related Cost, Description			eliminated 50 general and administrative, primarily corporate positions

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Restructuring Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 0.5	$ 1.0	$ 0.6	$ 0.0
Payments for Restructuring	(1.3)	(1.5)	(1.5)
Restructuring Charges	0.8	1.9	2.1
One-time Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0.2	0.5	0.4	0.0
Payments for Restructuring	(0.6)	(0.8)	(0.4)
Restructuring Charges	0.3	0.9	0.8
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0.3	0.5	0.2	$ 0.0
Payments for Restructuring	(0.7)	(0.7)	(1.1)
Restructuring Charges	$ 0.5	$ 1.0	$ 1.3

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Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Nov. 21, 2017
Schedule of Equity Method Investments [Line Items]
Loss on impairment and disposal of assets	$ 3.2	$ 6.7	$ 31.1
Proceeds from sale of unconsolidated affiliate		$ 0.0	5.0
Biosyn Holdings, LLC
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of unconsolidated affiliate			5.0
Fluid Holding Corp [Member]
Schedule of Equity Method Investments [Line Items]
Loss on impairment and disposal of assets	$ 3.6		$ 19.7
Equity Method Investment, Ownership Percentage				10.00%

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Subsequent Events (Details) - USD ($) $ in Millions			9 Months Ended
		Nov. 01, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Subsequent Event [Line Items]
Increase (Decrease) in Derivative Assets and Liabilities			$ 0.3	$ 0.4
Subsequent Event [Member]
Subsequent Event [Line Items]
Fair Value of Derivative Measurement Date		Nov. 01, 2020
Increase (Decrease) in Derivative Assets and Liabilities		$ 5.3
7.625% Notes
Subsequent Event [Line Items]
Fixed rate			7.625%		7.625%
Senior Notes, Noncurrent	[1]		$ 150.7		$ 351.1

[1] The balance includes a fair value interest rate hedge adjustment, which increased the debt balance by $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively.