Good day, ladies and gentlemen. And welcome to the fourth quarter 2008 Calumet Specialty Products earnings conference call. My name’s Emmanuel and I’ll be your Operator for today. (Operator instructions) To remind you, this conference is being recorded for replay purposes. Now I’ll just turn the call over to your host for today, Ms. Jennifer Straumins, Senior Vice President. Please proceed.

Thank you, operator. Good afternoon, and welcome to the Calumet Specialty Products Partners investor’s call to discuss our fourth quarter 2008 financial results. During this call, Calumet Specialty Products Partners, L.P. will be referred to as the partnership or Calumet. Also participating in this call will be Bill Grube, our President and CEO; and, Pat Murray, our CFO. 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 our partnership's press release that was issued this morning as well as the 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. We’re very pleased with our overall performance as we managed through this period of unprecedented crude oil price volatility and economic uncertainty. Both of these factors impacted customer demand during the latter part of the fourth quarter. Our customers delayed purchases as they waited to see the impact of the dramatic drop in crude oil prices would have on our product pricing. NYMEX crude prices fell from an average of almost $118 per barrel in the third quarter to an average of just over $42 per barrel in December, a drop of…

Thank you, Jennifer. Net income for the three months ended December 31st, 2008 was $18.5 million, compared to net income of $7.8 million for the same period in 2007. The partnership’s performance for the quarter ended December 31st, 2008, as compared to the same period in 2007, increased by $10.7 million due primarily to an increase of $53.2 million in gross profit offset by increased derivative losses and interest expense of $28.4 million and $8.3 million, respectively. The increase in gross profit was primarily due to the significant decline in crude oil prices during the fourth quarter of 2008 as compared to the rising crude oil price environment in the fourth quarter of 2007. The increased derivative losses of $28.4 million is due primarily to the settlement of certain crude oil derivative instruments that experienced a significant decline in value as crude oil prices declined. As Jennifer mentioned, included in this amount were approximately $15.8 million of losses recognized from the early settlement of certain crude oil derivatives related to 2009. The increased interest expense of $8.3 million was the result of higher debt levels. Net income for the 2008 year was $44.4 million, compared to net income of $82.9 million for 2007. The partnership’s performance for the 2008 fiscal year as compared to 2007 was impacted for reasons consistent with those covered for the fourth quarter. We believe the non-GAAP measures of EBITDA, adjusted EBITDA, and distributable cash flow are important financial performance measures for the Partnership. EBITDA and adjusted EBITDA, as defined by the partnership’s credit agreements, were $44.2 million and $13.6 million, respectively for the fourth quarter as compared to $12.7 million and $8.0 million, respectively for the fourth quarter of 2007. The partnership’s distributable cash flow for the quarter ended December 31st, 2008 was $3.1 million…

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

(Operator instructions) And our first question will come from the line of Darren Horowitz with Raymond James. Please proceed.

Good morning. Thanks. Jennifer, first question for you, you mentioned in your prepared commentary that you had experienced the impact of delayed purchases on volumes at the end of the year. Can you give us some color as to how much you think was due strictly to customers managing their inventories for accounting purposes at the end of the year versus actual demand declines?

We think the majority of it was due to customers managing their inventories at the end of the year. We have seen quarter patterns pick up during the first part of the year.

Okay. Switching gears over to working capital, what was the absolute amount that you locked in on the January 26 supply agreement for Shreveport’s feedstock?

The absolute amount, it varies by -- by confirmation that we enter into. But the anticipation it would be up to about 15,000 barrels per day, crude oil to be supplied to the Shreveport refinery.

Okay. So when you look at both supply agreements in aggregate how much -- how much feedstock have you essentially locked in?

Well, essentially we’ve -- with the related party, take 15,000 from the January 26 agreement and approximately 8,000 on the Princeton agreement. So about 23,000 barrels per day.

Okay. So from a macro perspective, and Pat you touched on this, when you are looking at how volatile crude oil prices have been and you’re looking at the impact from a collateral perspective that might diminish your borrowing capacity, is that something that concerns you? From our expectations it doesn’t seem like you have a healthy CapEx where you’re going to need that to access your revolver. Is it purely a situation where you’re just trying to balance, essentially, inventory versus working capital needs?

Yes. I mean I think that’s right. And the situation for us is if you have a sudden decline in crude oil prices it can have a fairly immediate impact on your borrowing base, which, for us, is tested on a frequent basis. Ultimately, the business can recalibrate to lower crude oil prices because if crude oil price comes down then support that we might have to counter parties on crude oil supply, those things reduce as well. So you can manage through it. Lower absolute amounts of working capital. But it’s a sudden -- sudden decline that provides some short term vulnerability on working capital. But, again, if crude oil prices come down you should be increasing margins especially on the specialty products side. So you can maintain stability over time. But it’s a short term issue. That’s one reason that we have entered into these types of agreements that, I think, further enhance our liquidity.

Sure. I appreciate the color. Thanks.

(Operator instructions) And our next question will come from the line of Dave Rosenfeld with Williams Jones. Please proceed.

Hi. Just a couple of questions. So Shreveport capacity was 37,000 in the fourth quarter? That’s how much you ran in the third -- fourth quarter?

That was run rate. Yes.

That was the average over the quarter. There are periods during the quarter where we are running 50 plus thousand barrels a day and then we were down for part of the quarter due to the scheduled turnaround.

Okay. And how many of that were sour barrels?

About 16,000.

16,000? Jennifer, you said 16,000?

That’s what I said. Yes.

So 16,000 of the 37,000 were sour.

Well, 16,000, when we were running the 50,000, were sour.

Only about 10,000 actually

So 10,000 on average.

Okay. So 10. Now, you’re running around 50,000 as of right now. And what percentage of that is our sour?

We’re running about 16,000 is sour right now at 50,000 barrels a day.

Okay. And the current differential on the sour is still around $5?

A little bit less than that, now.

It looked like, correct me if I’m wrong here, that the gross profit per barrel in the fourth quarter was around $18? Is that -- is that likely to continue? Has the price differentials essentially remained the same here so far in the first quarter?

Our lube price differentials have narrowed significantly and our fuels differentials have stayed about the same, is about what I would say.

So your gross profit per barrel should come down in the first quarter?

It should definitely come down in the first quarter.

And that’s as a result of customers just looking at crude prices and of recalibrating?

That’s correct.

Basically, that’s correct.

And talk about what your planned CapEx is going to be for ’09?

We plan on spending about $20 million in CapEx, majority of that is environmental and maintenance.

Okay. And can you talk a little bit about industry capacity and more industry development related issues?

Well, we previously announced -- two of our paraffinic competitors did announce that they were ceasing operations and they have followed through on that. There’s one more Group I paraffinic refinery that -- Sun Tulsa and they said in the conference call in January that if they could not sell their refinery, they’ve been trying to do, but they plan to turn that plant into a terminal by the end of the year. So we would expect either to see that refinery purchased or to see another 8,000 barrels a day of capacity with the paraffinic market

So if Shreveport continues to run at 50,000, what would you guess your company-wide barrels per day would be in the first quarter?

65,000 to 70,000.

Closer to the 70,000.

Okay. And what percentage of your fuels is hedged in the first quarter?

About 60% to 75% depending on what those run rates actually are. We’ve published what all the -- the total barrels of hedges are --it’s about 23,000 barrels a day hedged.

And I can’t remember -- what’s this with the cracks that you hedged there? $10?

A little over $11.

A little over $11. And on hedged barrels right now in the current environment what would you guess the crack spread is?

Right around $12.

So it’s the same as your hedge?

More or less, yes.

And have you entered into any other long -- have you started to hedge any further now?

We have not hedged any further additional fuels products since our last publication. We expect -- we are required by our credit agreements to hedge two years out at a certain level. So we will be hedging shortly.

Okay. Okay. Great. Thanks.

Thank you.

And at this time I show no more questions in queue. I’d like to turn the call back over to Jennifer Straumins.

Thank you. This concludes our fourth quarter earnings call. Thank you for your participation this afternoon. And please note that this teleconference will be available for replay using the instructions contained in our press release. Thanks, everybody.