Calumet Expands Operations with Strategic Asset Lease and Agreement Amendments

Calumet's Strategic Moves to Enhance Sustainable Aviation Fuel Production

On November 5, 2026, Calumet, Inc. (NASDAQ: CLMT) announced significant transactions that will bolster the growth of its subsidiary, Montana Renewables, LLC (MRL). These arrangements are part of a broader strategy to advance Calumet's MaxSAF® expansion initiative. The company has entered into a long-term lease for certain assets of Calumet Montana Refining, LLC (CMR) with MRL and has amended its existing agreement with Warburg Pincus LLC.

Asset Lease to Support Sustainable Aviation Fuel Production

In a landmark move, CMR, a restricted subsidiary of Calumet, has engaged in a long-term lease agreement that is expected to yield approximately $30 million in annual lease income. This vital agreement will enable the use of critical equipment that supports an increase in sustainable aviation fuel (SAF) output, aiding in producing renewable propane and enhancing overall throughput. Todd Borgmann, the CEO of Calumet, expressed optimism about this collaboration, underscoring how it strengthens the company's position in the renewable fuels market, affirming its commitment to sustainable agriculture and the Montana economy.

Furthermore, Calumet aims to capture 70% of the originally anticipated economic project benefits for roughly 15% of the capital initially planned for this ambitious expansion.

Revised Agreement with Warburg Pincus

In a complementary transaction, Calumet revised its agreement with Warburg Pincus, allowing the latter to exchange its 13.17% ownership in Montana Renewables Holdings LLC for warrants that grant the option to acquire up to 8% of the common equity of the same entity. This amends the preferred return rate to 11.5%, further enhancing the investment appeal and financial alignment between both parties. This strategic partnership facilitates ongoing development of MRL and highlights the unified efforts towards advancing the MaxSAF® expansion.

MaxSAF® Expansion Plan Highlights

The overarching goal of these transactions is to progress the MaxSAF® expansion plan through the allocation of CMR assets essential for MRL's operations. This includes deploying advanced refining equipment such as hydrotreater and hydrogen plant systems. The lease terms will not only foster the immediate production of SAF but will lead to an expected output of 200 million gallons of annual SAF production by 2028 alongside 17,000 barrels per day across total product sales.

Significantly, this expansion plan is anticipated to be realized at a fraction of the initial project costs, with a total remaining capital expenditure expected to be around $137 million, taking into account the previous forecast of $1.2 billion.

Conclusion

These developments mark a pivotal step in Calumet's journey towards establishing Montana Renewables as one of the foremost producers of sustainable aviation fuel globally. By modernizing its operations and optimizing resource utilization through leasing agreements and strategic partnerships, Calumet is positioning itself at the forefront of the renewable energy sector, contributing not only economically but also environmentally across the regions actively involved.

Calumet, based in Indianapolis, operates twelve facilities throughout North America, manufacturing a variety of specialty products and renewable fuels that cater to a vast range of industrial markets. As Montana Renewables continues to adapt and thrive amid the growing demand for renewable fuels, the potential impact on local communities and beyond will be substantial.