News Releases

Calumet Specialty Products Partners, L.P. Reports First Quarter 2006 Earnings and Updates Capacity Growth Projects at Its Shreveport Refinery
Highlights for the quarter ended March 31, 2006 are as follows: * Reported Adjusted EBITDA of $26.1 million for the quarter ended March 31, 2006, an increase of $17.4 million over the same period in the prior year.
* Declared a prorated first quarter distribution of $0.30 per unit on April 24, 2006, payable on May 15, 2006 to unitholders of record on May 2, 2006. This prorated distribution equates to $0.45 per unit per full quarter, or $1.80 per unit per year.
* Announced a major Shreveport refinery expansion project expected to increase refinery capacity by an estimated 16,000 barrels per day.
PRNewswire-FirstCall
INDIANAPOLIS

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") reported net income for the quarter ended March 31, 2006 of $3.5 million compared to a net loss of $0.1 million for the first quarter of 2005. Earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA (as defined by the Partnership's credit agreements) were $13.2 million and $26.1 million, respectively, for the first quarter of 2006 as compared to $7.5 million and $8.7 million, respectively, for the first quarter of 2005. Distributable Cash Flow for the period of February 1, 2006 to March 31, 2006 was $18.4 million. (See the section of this release titled "Non-GAAP Financial Measures" and the attached tables for discussion of EBITDA, Adjusted EBITDA, Distributable Cash Flow and other non-generally accepted accounting principles ("non-GAAP") financial measures, definitions of such measures, and reconciliations of such measures to the comparable GAAP measures.)

The earnings and financial position for the quarter ended March 31, 2006 include the financial results of the Calumet Lubricants Co., L.P. (the "Predecessor") through January 31, 2006. For the period from January 1, 2006 to January 31, 2006, the Predecessor generated net income of $4.4 million, EBITDA of $9.8 million, and Adjusted EBITDA of $4.5 million. Substantially all of the assets and operations of Calumet Lubricants Co., L.P. and its consolidated subsidiaries were contributed to the Partnership in connection with the closing of the Partnership's initial public offering during the first quarter (the "IPO").

"We have followed up our performance in the fourth quarter of 2005 with another strong quarter to start 2006," said Bill Grube, Calumet's President and CEO. "These results are ahead of budget and provide us further confidence in executing our business plan."

The Partnership's performance for the first quarter of 2006 as compared to the first quarter of 2005 was positively impacted by widened specialty and fuel products margins partially offset by increased transportation expenses resulting from higher sales volume and an unrealized loss on derivative instruments used to hedge our fuel products margins in future periods. The unrealized loss is a non-cash item that results from valuing these derivatives at their fair value. Our objective in hedging our fuel products margins is to ensure stability of cash flows in future periods. We believe that this hedging program is helping us achieve this objective.

The Specialty Products segment sales volume for the first quarter of 2006 was 26,817 barrels per day (bpd) as compared to 22,584 bpd for the same period in the prior year, an increase of 4,233 bpd.

Total Fuel Products segment sales volume for the first quarter of 2006 was 25,273 bpd as compared to 15,834 bpd in the same period for the prior year, an increase of 9,439 bpd due to the Fuel Products segment ramping up operations in the first quarter of 2005, subsequent to the reconfiguration of the Partnership's Shreveport refinery to add motor fuels production.

Gross profit by segment for the first quarter of 2006 for Specialty Products and Fuel Products was $37.1 million and $13.9 million, respectively, compared to $17.7 million and $8.4 million, respectively, for the same period in 2005.

As previously announced on April 26, 2006, the Partnership declared its prorated quarterly cash distribution of $0.30 per unit for the period from January 31, 2006 (the closing date of the IPO) to March 31, 2006. The distribution will be paid on May 15, 2006 to unitholders of record on May 2, 2006.

The following table sets forth unaudited information about our combined refinery operations. Refining production volume differs from sales volumes due to changes in inventory.

                                              Calumet (1)    Predecessor
                                              -----------    -----------
                                                  Three Months Ended
                                                  ------------------
                                                       March 31,
                                             ----------------------------
                                                 2006            2005
                                                ------          ------
  Sales volume (bpd):
  Specialty Products sales volume              26,817          22,584
  Fuel Products sales volume                   25,273          15,834
                                             ----------------------------
  Total (2)                                    52,090          38,418
                                             ============================

                                             ----------------------------
  Total feedstock runs (bpd) (3)               52,370          42,059
                                             ----------------------------
  Refinery production (bpd) (4)
    Specialty Products:
      Lubricating oils                         11,695          10,095
      Waxes                                     1,144             886
      Solvents                                  4,346           3,422
      Asphalt and other by-products             5,561           5,490
      Fuels                                     2,508           2,395
                                             ----------------------------
        Total                                  25,254          22,288
                                             ----------------------------
    Fuel Products (bpd):
      Gasolines                                10,002           6,401
      Diesel fuels                              7,724           7,792
      Jet fuels                                 7,308           3,772
      Asphalt and other by-products               297              90
                                             ----------------------------
        Total                                  25,331          18,055
                                             ----------------------------
    Total refinery production                  50,585          40,343
                                             ============================

(1) Includes the period of January 1, 2006 through January 31, 2006 for the Predecessor.

(2) Total sales volume includes sales from the production of the Partnership's refineries and sales of inventories.

(3) Feedstock runs represents the barrels per day of crude oil and other feedstocks processed at the Partnership's refineries.

(4) Total refinery production represents the barrels per day of specialty products and fuel products yielded from processing crude oil and other refinery feedstocks at the Partnership's refineries. The difference between total refinery production and total feedstock runs is primarily a result of the time lag between the input of feedstock and production of end products and volume loss.

Update on Calumet's Internal Growth Projects at its Shreveport Refinery

The Partnership is implementing capital improvement projects at the Shreveport refinery, which are expected to be completed and fully operational by the third quarter of 2007 and should significantly increase this refinery's operating capacity. "We are focusing on these projects to further enhance our specialty products offering," said Grube. These integrated projects include the following:

  *  Initial Shreveport Refinery Expansion Project

  The Distillate Desulfurization and Dewaxing (DDD) unit and crude unit have
  been debottlenecked which will increase the refinery's throughput by
  approximately 10%.  This portion of the project will be completed during
  the second quarter of 2006.  As part of this project, Calumet has
  increased its ability to run sour crudes to approximately 5,000 bpd to
  lower overall feedstock costs.

  *  Major Shreveport Refinery Expansion Project

  Calumet is undertaking a major expansion project involving several
  operating units which should result in an additional capacity increase of
  approximately 16,000 bpd, bringing throughput rates for the Shreveport
  refinery to approximately 57,000 bpd and significantly increasing the
  production of specialty products, primarily lubricating oils, over their
  current levels.  On a combined basis, the production of specialty
  lubricating oils and waxes at Shreveport is anticipated to increase by
  approximately 60% over current levels upon completion of the project in
  the third quarter of 2007.  In conjunction with the project, Calumet plans
  to expand the capacity to run additional sour crude volumes to further
  reduce feedstock costs.  Of the anticipated 57,000 bpd throughput rate
  upon completion, the Partnership expects to run approximately 42,000 bpd
  of sweet crudes and 13,000 bpd of sour crudes, with the remainder coming
  from interplant feedstocks.  Since the inception of the planning and
  engineering phase of the project, the project's scope was expanded to the
  current estimates.

  *  Capital Expenditures for the Expansion Projects

  Calumet has begun to purchase certain equipment integral to the projects
  and anticipates incurring approximately $60 million in capital
  expenditures in 2006, with additional capital expenditures of
  approximately $50 million related to the project in 2007.  The projected
  payback period on this project is 2 to 3 years.

The Partnership is a leading independent producer of high-quality, specialty hydrocarbon products in North America. The Partnership processes crude oil into customized lubricating oils, solvents and waxes used in consumer, industrial and automotive products. The Partnership also produces fuel products including gasoline, diesel fuel and jet fuel. The Partnership is based in Indianapolis, Indiana and has three refineries located in northwest Louisiana.

A conference call is scheduled for 11:00 a.m. ET (10:00 a.m. CT) Thursday, May 11, 2006, to discuss the financial and operational results for the first quarter of 2006. Anyone interested in listening to the presentation may call 800-901-5218, passcode 36502678. For international callers, the dial-in number is 617-786-4511, passcode 36502678. The live internet webcast and the replay can be accessed on Calumet's website, http://www.calumetspecialty.com/ .

The telephonic replay is available in the United States by calling 888-286-8010 and entering passcode 22877086. International callers can access the replay by calling 617-801-6888, passcode 22877086. The replay will be available beginning Thursday, May 11, 2006, at approximately 1:00 p.m. until Thursday, May 25, 2006.

The information contained in this press release is available on the Partnership's website at http://www.calumetspecialty.com/ .

Cautionary Statement Regarding Forward-Looking Statements

Some of the information in this release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including "may," "believe," "expect," "anticipate," "estimate," "continue," or other similar words. These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other "forward-looking" information. These forward- looking statements involve risks and uncertainties that are difficult to predict and may be beyond our control. These risks and uncertainties include the success of the Partnership's risk management activities; the availability of, and the Partnership's ability to consummate, acquisition or combination opportunities; the Partnership's access to capital to fund acquisitions and its ability to obtain debt or equity financing on satisfactory terms; successful integration and future performance of acquired assets or businesses; environmental liabilities or events that are not covered by an indemnity; insurance or existing reserves; maintenance of the Partnership's credit rating and ability to receive open credit from its suppliers; demand for various grades of crude oil and resulting changes in pricing conditions; fluctuations in refinery capacity; the effects of competition; continued creditworthiness of, and performance by, counter parties; the impact of crude oil price fluctuations; the impact of current and future laws, rulings and governmental regulations; shortages or cost increases of power supplies, natural gas, materials or labor; weather interference with business operations or project construction; fluctuations in the debt and equity markets; and general economic, market or business conditions. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in this release as well as the Partnership's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, which could cause the Partnership's actual results to differ materially from those contained in any forward-looking statement.

Non-GAAP Financial Measures

We include in this release the non-GAAP financial measures of EBITDA, Adjusted EBITDA, and Distributable Cash Flow, and provide reconciliations of EBITDA, Adjusted EBITDA, and Distributable Cash Flow to net income and cash flow from operating activities, our most directly comparable financial performance and liquidity measures calculated and presented in accordance with GAAP.

EBITDA and Adjusted EBITDA 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;
  *  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.

We define EBITDA as net income plus interest expense, taxes and depreciation and amortization. We define Adjusted EBITDA to be Consolidated EBITDA as defined in our credit facilities. Consistent with that definition, Adjusted EBITDA, for any period, equals: (1) net income plus (2)(a) interest expense; (b) taxes; (c) depreciation and amortization; (d) unrealized losses from mark to market accounting for hedging activities; (e) unrealized items decreasing net income (including the non-cash impact of restructuring; decommissioning and asset impairments in the periods presented); and (f) other non-recurring expenses reducing net income which do not represent a cash item for such period; minus (3)(a) tax credits; (b) unrealized items increasing net income (including the non-cash impact of restructuring, decommissioning and asset impairments in the periods presented); (c) unrealized gains from mark to market accounting for hedging activities; and (d) other non-cash recurring expenses and unrealized items that reduced net income for a prior period, but represent a cash item in the current period. We are required to report Adjusted EBITDA to our lenders under our credit facilities and it is used to determine our compliance with the consolidated leverage test thereunder.

We believe that Distributable Cash Flow provides additional information for investors to evaluate the Partnership's ability to declare and pay distributions to unitholders.

We define Distributable Cash Flow as Adjusted EBITDA less maintenance capital expenditures, cash interest expense and income tax expense.

                CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands except per unit data)

                                                  Calumet      Predecessor
                                                  -------      -----------

                                                Three Months Ended March 31,
                                                ----------------------------
                                                     2006             2005
                                                    ------           ------
                                                  Unaudited        Unaudited

  Sales                                          $397,694         $229,549
  Cost of sales                                   346,744          203,432
                                                 ---------------------------
  Gross profit                                     50,950           26,117
                                                 ---------------------------
  Operating costs and expenses:
  Selling, general and administrative               4,929            3,392
  Transportation                                   13,907           10,723
  Taxes other than income taxes                       914              732
  Other                                               115              157
  Restructuring, decommissioning and
   asset impairments                                    -              368
                                                 ---------------------------
  Operating income                                 31,085           10,745
                                                 ---------------------------
  Other income (expense):
  Interest expense                                 (3,976)          (4,864)
  Debt extinguishment costs                        (2,967)               -
  Realized gain (loss) on derivative instruments   (3,080)          (6,651)
  Unrealized gain (loss) on derivative instrument (17,715)             603
  Other                                               199               39
                                                 ---------------------------
  Total other (expense)                           (27,539)         (10,873)
                                                 ---------------------------
  Net income (loss) before income taxes             3,546             (128)
  Income tax expense                                   14                -
                                                 ---------------------------
  Net income (loss)                                $3,532            $(128)
                                                 ===========================
  Allocation of net income:
  Less: Net income applicable to Predecessor
   for the period through January 31, 2006         (4,408)
                                                 ----------
  Net loss applicable to Calumet for the
   period February 1, 2006 through March 31, 2006    (876)
  Minimum quarterly distribution to
   common unitholders, prorated                    (3,885)
  General partner's interest in net loss               18
                                                 ----------
  Subordinated partners' interest in net loss      (4,743)
                                                 ==========

  Basic and diluted net income (loss)
   per limited partners' unit:
  Common                                            $0.30
                                                 ==========
  Subordinated                                     $(0.36)
                                                 ==========

  Weighted average limited partner common
   units outstanding - basic and dilutive          12,950
  Weighted average limited partner subordinated
   units outstanding - basic and dilutive          13,066



                CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (in thousands)

                                                  Calumet      Predecessor
                                                  -------      -----------
                                                 March 31,    December 31,
                                                 ---------    ------------
                                                   2006            2005
                                                   ----            ----
                                                 Unaudited
  Assets
  Current assets:
    Cash                                              $85         $12,173
    Accounts receivable, net                      113,617         115,294
    Inventories                                   101,118         108,431
    Derivative assets                                 313           3,359

    Prepaid expenses and other current assets       3,179          19,650
                                                  -------         -------
  Total current assets                            218,312         258,907
                                                  -------         -------
  Property, plant and equipment, net              127,674         127,846

  Other noncurrent assets, net                      3,473          12,964
                                                  -------         -------
  Total assets                                   $349,459        $399,717
                                                  =======         =======
  Liabilities and partners' capital
  Current liabilities:
    Accounts payable                              $52,216         $44,759
    Other current liabilities                      17,340          17,470
    Current portion of long-term debt                 500             500
    Derivative liabilities                         46,097          30,449
                                                  -------         -------
  Total current liabilities                       116,153          93,178
  Long-term debt, less current portion             64,126         267,485
  Total liabilities                               180,279         360,663
                                                  -------         -------

  Total partners' capital                         169,180          39,054
                                                  -------         -------
  Total liabilities and partners' capital        $349,459        $399,717
                                                  =======         =======



                CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (in thousands)

                                                   Calumet       Predecessor
                                                ------------    ------------

                                                Three Months Ended March 31,
                                                ----------------------------
                                                      2006            2005
                                                ------------    ------------
                                                  Unaudited       Unaudited
  Operating activities

  Net income (loss)                                $ 3,532          $(128)
  Adjustments to reconcile net income (loss)
   to net cash provided by (used in) operating
   activities:
    Depreciation and amortization                    2,673          2,796
    Provision for doubtful accounts                    127             50
    Loss on disposal of property and equipment           6              -
    Unrealized loss on derivative instruments       17,715           (603)
    Debt extinguishment costs                        2,967              -
    Changes in assets and liabilities:
      Accounts receivable                            1,400        (22,506)
      Inventories                                    7,313         (3,009)
      Prepaid expenses and other current assets     16,471         (5,117)
      Derivative activity                              979          6,908
      Other noncurrent assets                        4,408          1,027
      Accounts payable                               7,457        (29,974)
      Other current liabilities                     (4,933)         2,551
                                                ----------------------------
  Net cash provided by (used in) operating
   activities                                       60,115        (48,005)
                                                ----------------------------
  Investing activities
  Additions to property, plant and equipment        (2,975)        (6,933)
  Proceeds from disposal of property, plant and
   equipment                                            54              -
                                                ----------------------------
  Net cash used in investing activities             (2,921)        (6,933)
                                                ----------------------------
  Financing activities
  Net proceeds (payments) on borrowings           (203,359)        37,306
  Proceeds from initial public offering            138,743              -
  Contribution from Calumet GP, LLC                    375              -
  Cash distribution to Calumet Holding, LLC         (3,257)             -
  Change in bank overdraft                           5,116              -
  Distribution to Predecessor partners              (6,900)             -
                                                ----------------------------
  Cash provided by (used in) financing activities  (69,282)        37,306
                                                ----------------------------
  Net increase (decrease) in cash                  (12,088)       (17,632)
  Cash at beginning of period                       12,173         18,087
                                                ----------------------------
  Cash at end of period                                 85            455
                                                ============================

  Supplemental disclosure of cash flow information
  Interest paid                                      3,797          2,134
                                                ============================



                CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
  RECONCILIATION OF EBITDA, ADJUSTED EBITDA, AND DISTRIBUTABLE CASH FLOW
                           TO NET INCOME (LOSS)
                              (in thousands)

                                                    Calumet      Predecessor
                                                 ------------    -----------
                                                      Three Months Ended
                                                      ------------------
                                                           March 31,
                                                           ---------
                                                      2006          2005
                                                ------------    ------------

  Net income (loss)                                 $3,532          $(128)
  Add:
    Interest expense and debt extinguishment costs   6,943          4,864
    Depreciation and amortization                    2,673          2,796
    Income tax expense                                  14              -
                                                ----------------------------
  EBITDA                                            13,162          7,532
                                                ----------------------------
  Add:
    Unrealized losses (gains) from mark to market
     accounting for hedging activities              17,715           (603)
    Non-cash impact of restructuring,
     decommissioning and asset impairments               -            368
    Prepaid non-recurring expenses and accrued
     non-recurring expenses, net of cash outlays    (4,767)         1,421
                                                ----------------------------
  Adjusted EBITDA                                  $26,110         $8,718
                                                ----------------------------
  Less:
    Adjusted EBITDA attributable to Predecessor     (4,494)
    Maintenance capital expenditures (a)              (898)
    Cash interest expense (b)                       (2,311)
    Income tax expense                                 (14)
                                                ------------
  Distributable Cash Flow for period
   February 1, 2006 to March 31, 2006              $18,393
                                                ============


(a) Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels.

(b) Cash interest expense is net of amortization charges associated with deferred debt issuance costs.

                CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
  RECONCILIATION OF EBITDA, ADJUSTED EBITDA, AND DISTRIBUTABLE CASH FLOW
          TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
                              (in thousands)

                                                    Calumet      Predecessor
                                                 ------------    -----------
                                                      Three Months Ended
                                                      ------------------
                                                           March 31,
                                                           ---------
                                                      2006           2005
                                                 ------------    -----------
  Net cash provided by (used in) operating
   activities                                      $60,115       $(48,005)
  Add:
    Interest expense                                 6,943          4,864
    Income tax expense                                  14              -
    Provision for doubtful accounts                   (127)           (50)
    Unrealized loss on derivative instruments      (17,715)           603
    Debt extinguishment costs                       (2,967)             -
  Changes in operating working capital:
    Accounts receivable                             (1,400)        22,506
    Inventory                                       (7,313)         3,009
    Other current assets                           (16,471)         5,117
    Derivative activity                               (979)        (6,908)
    Accounts payable                                (7,457)        29,974
    Accrued liabilities                              4,933         (2,551)
    Other, including changes in non current
     assets and liabilities                         (4,414)        (1,027)
                                                ----------------------------
  EBITDA                                            13,162          7,532
                                                ----------------------------
  Add:
    Unrealized losses (gains) from mark to market
     accounting for hedging activities              17,715           (603)
    Non-cash impact of restructuring,
     decommissioning and asset impairments               -            368
    Prepaid non-recurring expenses and accrued
     non-recurring expenses, net of cash outlays    (4,767)         1,421
                                                ----------------------------
  Adjusted EBITDA                                  $26,110         $8,718
                                                ----------------------------
  Less:
    Adjusted EBITDA attributable to Predecessor     (4,494)
    Maintenance capital expenditures (a)              (898)
    Cash interest expense (b)                       (2,311)
    Income tax expense                                 (14)
                                                 ------------
  Distributable Cash Flow                          $18,393
                                                 ============


(a) Maintenance capital expenditures are defined as those capital expenditures which do not increase operating capacity or revenues from existing levels.

(b) Cash interest expense is net of amortization charges associated with deferred debt issuance costs.

SOURCE: Calumet Specialty Products Partners, L.P.

CONTACT: Jennifer Straumins, Investor Relations of Calumet Specialty
Products Partners, L.P., +1-317-328-5660

Web site: http://www.calumetspecialty.com/