Good day, ladies and gentlemen, and welcome to the second quarter Calumet Specialty Products earnings conference call. My name is Sue and I will be your coordinator for today. At this time, all participants are in a listen-only mode. We will be conducting a question-and-answer session towards the end of this conference. (Operator instructions) As a reminder, this conference is being recorded for replay purposes. I would like now to turn the presentation over to your host for today's call, Jennifer Straumins, Senior Vice President. Please proceed.

Thank you, Operator. Good afternoon, and welcome to Calumet Specialty Products Partners investors call to discuss our second quarter 2008 financial results. During this call Calumet Specialty Products Partners will be referred to as the Partnership or Calumet. Bill Grube, our President and CEO, will lead off the call in a summary discussion of the business, to be followed by Pat Murray, our CFO, who will discuss our financial results. Following the presentation, we will hold the line open for a question-and-answer session. During the course of this call, we will make various forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such statements are based on the beliefs of our management, as well as assumptions made by them and, in each case, based on information currently available to them. Although our management believes that the expectations reflected in such forward-looking statements are reasonable, neither the Partnership, its general partner, nor our management can provide any assurances that such expectations will prove to be correct. Please refer to the Partnership's press release that was issued yesterday, as well as its latest filings with the Securities and Exchange Commission for a list of factors that may affect our actual results and could cause them to differ from our forward-looking statements made on this call. Now I'd like to turn the call over to Bill Grube, the President and CEO of Calumet.

Thank you, Jennifer. This continues to be a very difficult environment for all refiners, including Calumet. Historically high crude prices continue to pose significant challenges during the quarter. We have implemented multiple rounds of specialty product price increases to customers during this volatile period. We expect the recent reduction or termination of production by – of certain specialty products by other major suppliers, namely Marathon and Citgo, will have a favorable impact on Calumet, placing additional specialty products volumes in the market from our Shreveport refinery expansion project. The completion of the Shreveport refinery expansion project in May, 2008, the continued integration of Penreco, our increased hedging of specialty products, input prices, and working capital reductions, all of which were previously announced second quarter initiatives, had a positive impact on our second quarter results. We can provide no assurances as to the timing or magnitude of continued improvement in our operating results; and to the extent we experience rapid escalation of crude oil prices, our operating results could be adversely affected. As of May, 2008, the Shreveport refinery expansion project was operational. We invested approximately $147.7 million in capital expenditures at the Shreveport refinery in the six months ended June 30, 2008, of which $115.5 million relates to the Shreveport expansion project. From December 31, 2005, through June 30, 2008, the Partnership invested approximately $473.1 million in the Shreveport refinery, of which $369.9 million relates to the Shreveport refinery expansion project. The Shreveport expansion project has increased this refinery's throughput capacity from 42,000 barrels per day to approximately 60,000 barrels per day. For the three months ended June 30, 2008, the Shreveport refinery had total feedstock runs of 41,000 barrels per day, which represents an increase of approximately 6,000 barrels per day from the first quarter of 2008. As part…

Thank you, Bill. Now we'll provide a brief review of the financial results for the quarter ended June 30, 2008, for Calumet. Net income for the three months ended June 30, 2008, was $41.8 million compared to net income of $37.4 million for the same period in 2007. The Partnership's performance for the second quarter of 2008, as compared to the same period in the prior year, was positively impacted by higher gross profit in our fuels products segment, offset by lower gross profit in our specialty products segment. Net income was also positively affected by increased unrealized gains on certain crude oil collar derivative instruments not designated as hedges and a one-time gain of $5.8 million on the lease of mineral rights on the real property at our Shreveport and Princeton refineries to an unaffiliated third party, which have been accounted for as a sale. These increases were partially offset by increased interest expense, due primarily to higher debt levels from financing both the Penreco acquisition, which closed in January, 2008, as well as the completion of the Shreveport refinery expansion project, which was operational in May, 2008. Net income for the six months ended June 30, 2008, was $38.4 million compared to net income of $65.6 million for the same period in 2007. Partnership's performance for the six months ended June 30, 2008, as compared to the prior year, was negatively impacted by lower gross profit in our specialty products segment, partially offset by increased gross profit for our fuel products segment. Net income was also positively affected by increased unrealized gains, uncertain crude oil collar derivative instruments not designated as hedges, and a gain on the lease of mineral rights on the real property at our Shreveport and Princeton refineries to an unaffiliated third party, which has…

Thank you, Pat. This concludes our remarks. We will now be happy to answer any questions you may have. Operator, would you please confirm if there are any questions?

(Operator instructions) And your first question comes from the line of Darren Horowitz from Raymond James. Please proceed. Darren Horowitz – Raymond James: Good afternoon. Darren Horowitz with Raymond James. Bill, first question for you, and this goes back to some of the prepared commentary that you were discussing earlier on. When we are trying to look at EBITDA for this quarter on a pure, continuing operations basis, you can obviously look at your adjusted EBITDA, which is net of the realized, and unrealized adjustments on the derivatives, and you would remove the inventory sales on the mineral rights, obviously, because that is onetime in nature, as you discussed, but is that the proper way to look at what your core operations from continuing operations – from a continuing basis would be on EBITDA, a loss of $18 million?

I'll answer that for you, Darren. No, we've had a lot of things change in the marketplace. I mean, we've been running – we've been watching crude run up. Crude's gone up $10 plus a month. We've matched those with price increases. We've had between six and eight price increases starting in February across all product lines. And now that crude is coming down, obviously that's going to allow us to catch up with crude or maybe even be a little bit ahead of crude in our margins. So certainly that $18 million loss is not where we are going forward, plus second quarter did not have a full quarter's impact of the Shreveport refinery expansion project in there. We won't see that until this quarter. Darren Horowitz – Raymond James: Okay. Let me ask the question a slightly different way. When you're looking at working capital and working capital reductions from that point going forward, in the prepared commentary you had said that you're going to continue working this strategy through the third quarter of this year. Given that you've reduced your overall inventory levels by about 30% relative to the end of March, how much more is left to go? How much more of a working capital or a monetization of inventory can we expect in the third quarter?

I wouldn't say that there is a significant amount of additional inventory that can be reduced, but there are opportunities in the inventory categories, as part of our Penreco acquisition, that's an area that we're evaluating. We can't – we undertook a very significant inventory reduction in the second quarter, which we certainly think made sense to do in light of where commodity prices were, but we're also cognizant that it does take inventory to run the business, and we have to be able to operate as well. So we would not anticipate that there would be significant reductions to the extent in the second quarter, but we do think there are some opportunities for a further reduction. Darren Horowitz – Raymond James: Sure. Can you quantify how much inventory you're keeping right now, just as a measure of us trying to gauge that working capital reduction? I mean, is it 100,000 or 150,000 barrels of excess inventory that you can monetize?

Of excess or of total inventories? Darren Horowitz – Raymond James: Of inventory that you might be opportunistically reviewing the potential sale of?

Probably between 100,000 and 200,000 barrels is what I would guess at this point in time. Darren Horowitz – Raymond James: Okay. I appreciate that clarity. And just one final question. Also in the prepared remarks, when you're discussing your credit agreement covenant compliance, and you're talking about the substantial assistance that this FIFO inventory reduction, mineral rights sales yielded, if you were to back those two things out, would you have been in compliance this quarter?

If you would back out the two instances, we would not have met compliance, but, obviously, the credit agreements are based on GAAP earnings, and so we were clearly in compliance based on that. Darren Horowitz – Raymond James: Sure. Okay. Thanks, Pat, I appreciate it.

(Operator instructions) And your next question comes from Ethan Bellamy with Lehman Brothers. Please proceed. Ethan Bellamy – Lehman Brothers: Good afternoon. Are there any other assets similar to the mineral rights that you can sell to raise cash?

Not really. We've got some idled equipment at the Shreveport refinery that we've looked at selling a number of times over the years, but it's certainly not something that we're counting on. We weren't counting on this mineral rights lease either. It just happened to be going on this quarter, and – Ethan Bellamy – Lehman Brothers: Okay.

But we're expecting to make our earnings through operations in the third quarter. Ethan Bellamy – Lehman Brothers: Okay. Your customers are obviously aware that crude has come in recently. If it stays at current levels, will they be pressuring you to reduce your prices in specialty products, or can you maintain the book that you have now?

We –

I think the answer to both of those questions is yes. Obviously, crude is down about $30 from its peak, and we expect that customers will start to point that out to us, if they haven't already. At the same time, oil is tight in the market right now, and with two of our major paraffinic competitors announcing their exit from the industry and another – several other competitors are getting ready to go into the turnarounds, we feel pretty good about our book of business. Ethan Bellamy – Lehman Brothers: Okay. With respect to the one-time items, it looks like distributable cash flow for the quarter also goes negative. Have you considered any other options for shoring up the cash flow profile, like a temporary reduction or elimination of the incentive distribution rights or the payments to the GP or the subordinated units?

We're not in the IDRs at this point in time, and any of those other items would be addressed as necessary. Ethan Bellamy – Lehman Brothers: Okay. Thank you.

And your next question comes from Todd Wood [ph] from Wood & Company [ph]. Please proceed. Todd Wood – Wood & Company: Thank you for hosting the call. In the press release you've referred to Shreveport feedstock runs at 41,000 barrels per day versus an estimated capacity of 60,000. Is that 60,000 capacity something that you expect to achieve in the near future, or are market conditions preventing the full run?

No, market conditions – the 41,000 barrels per day was a weighted average over the course of the quarter. The project was up and running in early to mid-May, and we've continued to tweak production, and these are new units. Our operators have had to learn how to operate, and they've done a very good job, and we are expecting to operate at current – at higher rates than what we operated in the second quarter. However, at the same time we continue to optimize feedstocks and look at economics from our marketing department. So we will be running the barrels that are economical to run. Todd Wood – Wood & Company: Okay. That's great. Can you give us a sense of where the average contracts are made for specialty products? Is it reflecting, on average, crude at $120 or –?

What I can tell you is since the beginning of the year we've announced about $1.50 of price increases from where we were in December. Those price increases – the first of those started the first part of February. Unfortunately, we don't tell you where we're at versus crude, but our announced price increases are public information, so I can give you the $1.50.

Per gallon. Todd Wood – Wood & Company: Okay.

Per gallon. Todd Wood – Wood & Company: Okay.

This would be since the first part of the year. Todd Wood – Wood & Company: And a general question on hedging. Can you provide us with – well, as crude declines, do you anticipate that the, maybe, average sold puts – potential losses there are going to be offset by improved margins? Can you – if you can just describe a bit philosophically how you're putting your hedge book together and how it will respond in a declining environment that we're in now. That would be helpful.

Sure, and that's why we hedge in the shorter term, and anywhere from three to six months out, and as – we're not to that point yet where we're hitting those lower limits, but once we get there, we would expect that margins would continue to be strong enough, in the near term, to offset any hedging losses we would have on those barrels. Todd Wood – Wood & Company: Okay. And you referred to Marathon and Citgo exiting the market. Is there any quantification of the volumes that they were supplying that you can provide us?

About 15,000 barrels a day of lubes and about 3,600 barrels a day of wax. Todd Wood – Wood & Company: You said 30,000?

No, 3,600 barrels a day of wax. Todd Wood – Wood & Company: Okay. So it's, overall, a substantial–

It's a pretty good percentage.

Yes, it's a lot of the wax market that got up and walked away when they quit. Todd Wood – Wood & Company: Okay. I don't want to monopolize the call, so I would definitely like to follow up later with a few more questions. Thank you again for your time.

Thank you.

This concludes the Q&A. I would like now to turn the call back over to Jennifer Straumins for final remarks.

Thank you. This concludes our earnings conference call for the second quarter. Thank you very much for your participation in the teleconference, and please note that this will be available for replay using the instructions contained in our press release. Have a great day, everybody. Thank you.