Noel Ryan - VP of IR Jennifer Straumins - President and COO Pat Murray - CFO :

Richard Roberts - Howard Weil Edward Westlake - Credit Suisse Cory Garcia - Raymond James TJ Schultz - RBC Roger Read - Wells Fargo Operator Good day, ladies and gentlemen and welcome to the Second Quarter 2014 Calumet Specialty Products Partners Earnings Conference Call. My name is Glenn, and I will be the moderator for today. At this time, all participants are in listen-only mode and later, we will facilitate a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today, Mr. Noel Ryan, Vice President of Investor Relations. Please proceed.

Thank you, Glenn and good afternoon and welcome to the Calumet Specialty Products Partners’ second quarter 2014 results conference call. We appreciate you joining us today. Leading today’s call is Jennifer Straumins, our President and COO, who will provide an update on our recent performance and outlook for the future. Next Pat Murray, our Chief Financial Officer will provide detail on our financial performance during the first quarter. At the conclusion of our prepared remarks, we will open the call for questions. Before we proceed, allow me to remind everyone that during the course of this call, we may provide 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 the 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 the expectations will prove to be correct. Please refer to the Partnership’s press release that was issued this morning, as well as our 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. As I indicated in our press release issued earlier today. As I indicated in the press release issued earlier today, you may download a PDF of the presentation slides that will accompany the remarks made on today’s conference call. You may now access these slides in the Investor Relations section of our website at calumetspeciality.com. As I reminder, Calumet will host and analyst and Investor Day at the NASDAQ market site in New York this coming Monday, August 11, 2014 beginning at 1:30 PM Eastern Time. The entire event should last just under two hours and we’ll do webcast. However should you wish to attend it in person; advance registration is required to IR department, who will be available to assist you. As always, this event is open to all investors and sell-side analysts following our company. And with that, I’d like to hand the call over to Jennifer.

Thank you, Noel and good afternoon to all of you joining us on today’s call. If you could please turn to slide three in the slide deck for a high level overview of our second quarter results. Calumet generated adjusted EBITDA of $39.3 million during the second quarter compared to $70 million in the prior year period. Without question it was a challenging quarter on a number of fronts. Fortunately, many of the limiting factors that impacted our second quarter results, from expected refinery maintenance to elevated crude oil prices higher (Ph) during the third quarter. As we indicated in the form 8-K we filed with the SEC in late June, our Shreveport refinery which is our largest fuel and specialty products plant on a capacity basis conducted extended maintenance for approximately 30 days during May 2014. This plant turned on a negatively impact of fuel and specialty products sales volumes during the second quarter and represented a single most significant factor driving the year-over-year decline in our results. The maintenance conduced at Shreveport which included multiple plant optimization and reliability improvement projects, reached completion in early June. We are currently operating the refinery at elevated rates during the third quarter compare to the second quarter of 2014. Our second quarter performance was further impacted by a rapid escalation in crude oil prices throughout the early summer months which contributed to lower average refined product margins in both our business segments compared to the prior year period. Notably, we did enact price increases across the majority of our specialty products offerings in response to high crude oil prices during the second quarter. However, given the timing of these increases we expect the full impact to be more fully reflected in our third quarter results with crude prices point back below…

Thanks, Jennifer. Let’s all turn our attention to slide 12 for discussion of adjusted EBITDA. We believe the non-GAAP measure of adjusted EBITDA is an important financial performance measure for the partnership. Adjusted EBTIDA is defined under our financing instruments decreased to $39.3 million in the second quarter of 2014, down from $70 million in the same quarter of 2013. As illustrated in the chart on slide 12, the bulk of the year-over-year decline in adjusted EBITDA was due to declines in fuel products margins given the significant year-over-year decline in refined product crack spreads and lower sales volume due to extended Shreveport turnaround. We encourage investors to review the section of our earnings press release found on our website entitled non-GAAP financial measures and the attached tables for discussion and definitions as EBITDA, adjusted EBITDA and distributable cash flow and financial measures and reconciliations of these non-GAAP measures to the comparable GAAP measures. Turning to slide 13, fuels refining economics declined significantly on a year-over-year basis during the second quarter. The benchmark Gulf Coast 211 crack spread averaged $19 per barrel during the three months ended June 30, 2014 compared to $24 per barrel in the same period last year. The year-over-year decline in the 211 crack spread was driven primarily by a sharp drop in the diesel crack, and to a lesser degree, the gasoline crack. Crude oil price differentials remain volatile throughout the quarter, a factor which further impacted gross profit in the fuel segment. Turning to slide 14. As we look to sources and uses of cash between the first and second quarters of this year, it’s important to highlight that factors that reduced our cash position from a 180 million to 15 million. This decline in our cash position was expected and is partially offset…

(Operator Instructions). Your first question comes from the line of Richard Roberts from Howard Weil. Please proceed.

A couple of questions for me here I guess first, do have any idea of the opportunity cost from the down time at Shreveport in the quarter?

That opportunity cost was probably about $7 million.

Okay great. Okay, so last quarter on the call, the idea of the potential for a separate logistics MLP came up but I was wondering if you guys have any updated thoughts or anything new maybe you could share on that front?

We have continued to work with several of our banking partners to evaluate the opportunities there and we are continuing to evaluate our asset base as to what would be appropriate assets to potentially be dropped down into logistic MLP.

In recent 8-K you guys filed I guess about amount ago, you’ve talked about exploring strategic alternative for the Shreveport facility, can you give us any idea of what kind of options you’re looking at there?

Sure, there are a lot of options available there. There is some expansion project that we’re considering to modify and upgrade our products slate. There are feedstock opportunities that we’re pursuing that would slightly modify the feedstock that we run at the facility and you always can look for joint venturing, partnership opportunities or an outright sale of the faculty. And we’re talking about Shreveport here but that’s true in the case any of our assets of product line.

Okay and then maybe just one more for me. So I know on the fuel side, no more turnaround really plan until 2018, is there any notable maintenance that any of the facilities in your portfolio at all either in the back half of this year or in ’15?

We’ll have some minor down time in our Cotton Valley facility in late this year.

Your next question comes from the line of Edward Westlake with Credit Suisse. Please proceed.

Just focusing on this GTL investment I mean it seems like a $135,000 flowing barrel something like that well maybe slightly under that and then obviously you’ve got to buy gas and then you’re going to sell a chunk of diesel at a premium to wherever the oil price is. So I am just wondering is it really the specialty uplift that drive the economics of this project what sort of IRR do you think you could make at this sort of capital costs.

Well we’ve not disclosed the IRR for this project. And again this is a very small investment for Calumet. Quite honestly the EBITDA that we will be generating from our portion of facility will be a very small part of our overall EBITDA. The bigger opportunity -- going back to the initial part of your question, you’re correct, there is substantial margin uplift from the specialty products part of the barrel. The [indiscernible] our high margin as well as some of the other products that come off. So that’s again where we are putting our toe in the water, so to speak, trying to decide if we want to invest in other technology in the GTL area or move forward with the larger facility somewhere else in the United States.

So this is a sort of a pilot plan I mean obviously some of the other majors are building much, much larger plants, who have built much larger plants been there. So I am just wondering who do you think the economics stack up against the global competition overall all competing technologies?

I think the economics are comparable on a dollars per barrel basis with some of the largest facilities and again this plant is focusing on a specialty products part of the barrel where a lot of the other facilities are focusing totally on the fuels part.

And you said dipping your toes, we shouldn’t anticipate building in lots and lots more CapEx as you decide to roll out plans in this sort of area.

No, not at this time.

And just coming back to more the earnings, you made an intriguing comment about demand for asphalts having improved I mean I guess I get that the oil prices reduced and that will help your margins in 3Q. But intrigued by that comment because that would be probably a change in the market for asphalts?

Well, if you recall we’ve done a substantial amount of work on our distribution network for asphalt over the last year with our joint venture with Allstate Materials in Albany, New York and then the additional asphalt terminal in the Muskogee, Oklahoma. So by broadening our market diversification our geographic diversification it helped enhance to the demand for those barrels.

Right. So it’s not unit demand that just your share is not getting better or your ability to get that asphalt to market is improving.

That’s correct.

Okay. And then if I may just one more. Just on the North Dakota I mean obviously as we get closer to start up on Q4 or it was in the Q1, maybe talk a little bit about how normally refineries take time to ramp up, maybe talk about you ramp up plans? But also just from modeling purposes what sort of yield should we assume for the refinery?

The yields for the refinery are about 8,000 a day of diesel and 6,000 barrels a day of [indiscernible] and the balance is a [indiscernible] type of product that we will be selling into the crude market in Canada is the plan for that. And as far as ramp up goes, we’ve got about 2.5 to 3 months of ramp up budgeted and our models you are correct and so to bring something new online it takes time to line out and work out the things if you will.

And follow on question on that. The pricing of diluents when you present your EBITDA estimates for these projects, have you based it on historical relationships with diluent prices or have you been a bit more conservative.

We’ve been a bit more conservative.

Any idea of the --

That diluent market price can swing from WTI plus or minus $10 a barrel, there is quite a bit of volatility in that number.

Your next question comes from the line of Cory Garcia with Raymond James. Please proceed.

One I guess quick housekeeping item. I know the size will uptake in selling cost, I apologize I missed it but how much of that is simply a function of the sort of the integration cost involved with all the acquisitions or is that, I am really just trying to get a better idea of the appropriate quarterly run rate for that particular cost.

That run rate will actually probably go out now with SOS being, their sales team being part of that number. There really are no integration costs in that number, that’s just straight selling expenses and people.

Now again try not to jump going ahead of the analyst day will keep as to sort of what’s already in your ’14 backlog. Can you update us in terms of that sort of a 305 to 335 growth CapEx, how much is that inclusive logistics if any?

I guess part of that depends on how you define -- if you are talking about how you would up that growth, how much of it would be available to drop down into logistics MLP?

Yes that sort of the angle I am looking at.

So it really depends on how deeply you want to define logistics, I mean obviously [indiscernible] has taken tank farms and dropped those into their logistics MLP. You should say 35% to 50% of that CapEx could be around logistic assets.

It’s definitely along how I thought. Appreciate it.

Really aggressive and how you define logistics.

Yes, now that makes perfect sense. Thank you.

Your next comes from the line of TJ Schultz with RBC. Please proceed.

Just beyond looking at the potential assets for a logistic MLP just trying to understand what else is on the table, I mean, is there still the potential to put or to separate specialty and fuels into structure so that fuels is variable?

We’ve looked at that that’s not our preferred way to go at this time.

Okay and then just kind of asking again on timing, you’re talking to your banking partners here but how far along are you in the process. Is this something we should expect more details on next week or is this something that is going to take a while?

We’ll provide a few more details next week. We’ve got a special presentation to our Board of Directors in September to review some of these opportunities and the options available to us. I’d say we would have a lot more of information for you on the November earnings calls. And as we’ve said last quarter, we expect it will take us nine months or so to get all the work done before we will be ready to do anything.

(Operator Instructions) And your next question comes from the line of Roger Read with Wells Fargo. Please Proceed.

Guess I’d like to maybe come at the Dakota Prairie thing slightly different than the questions asked already, are there any particular critical path items we need to be aware of at this point, anything on the equipment side, labor side, et cetera?

Few different critical path items, the main one is the construction of the reactor for the diesel hydrotreater which has been done in Europe and that reactor was finished and put on a boat last week and is expected to arrive in Houston on August 19th and will be transported to North Dakota. So that is on schedule. The construction and commissioning of a wastewater treatment facility at the refinery is also a critical path item and we have received the equipment and the permits necessary to build that. So again on schedule and looking like it’s on budget. Those were the two main critical path items.

Okay thanks and then anchor now you’ve added I believe a full quarter or at least close enough certainly once we go through July, how is that performing relative to expectations and then just in terms of what seems to be reasonably good drilling activity levels, any comments you can offer there in terms of positive impacts on margins pricing et cetera or is there any cost inflation you need to be aware of in that business?

Number one, the integration is going very well. The business continues to grow at elevated rate compared to historical levels. It’s far surpassing our expectations from an EBITDA standpoint and we really don’t speak a lot publically about the comps and prices associated with this business where we’re actually honestly still working through how we’re going to be reporting this, what metrics and KPIs will be sharing with public as we continue to grow this part of the business. Can you give us a few months on that, I’d appreciate it. We did complete the construction of an additional mud plant in Midland, Texas. So we're pleased about that we will be able to increase rig count in that area due to that project finishing.

Okay great. The last question I had was on the specialty product side one of your major competitors added some capacity earlier this year, you’ve talked about being able to raise prices recently and then obviously the benefit of following crude prices is helping margins out, but just as a broad market comment how is new capacity in the market affecting you or affecting the market in general?

The market is fairly well balanced at this point in time. There are other refiners on turnaround and having some maintenance issues that have kept the supply of paraffinic base oil fairly well balanced with demand. We do caution as these refineries experiencing planned and unplanned down time, come back on line, we do expect to see length in paraffin liquid market.

So all good for now but we’ll keep our eyes open.

Right.

Okay and then I know this is probably a bigger item for Monday and if you don’t want to answer until then, that’s fine with me, but any thoughts on CapEx for ’15 at this point or maybe just general terms flat higher lower is a way to think about it?

Maintenance in environmental CapEx between $50 and $60 million year on average and we will not have any major turnaround expense next year just minor routine return on expense more or like 2012 type of levels. Growth CapEx, our growth projects are driven by ability to raise capital and the types of returns, don’t have anything outside of the announcement major projects that we are contemplating at this point for ’15.

I would now like to turn the call over to Jennifer Straumins for closing remarks.

Thank you for joining us on today’s call. Should you have any additional questions, please don’t hesitate to contact Noel Ryan, our VP of Investor Relations and we look forward to seeing some of you guys on Monday in New York. Thanks. Operator :