News Releases

Calumet Specialty Products Partners, L.P. Reports Fourth Quarter 2009 Results
PRNewswire-FirstCall
INDIANAPOLIS

Calumet Specialty Products Partners, L.P. (NASDAQ: CLMT) (the "Partnership" or "Calumet") reported net income for the quarter ended December 31, 2009 of $8.2 million compared to net income of $18.5 million for the quarter ended December 31, 2008. For the year ended December 31, 2009, net income was $61.8 million compared to net income of $44.4 million in 2008. Calumet reported net cash provided by operating activities of $100.9 million for 2009 as compared to $130.3 million for 2008.

Earnings before interest expense, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA (as defined by the Partnership's credit agreements) were $32.2 million and $26.8 million, respectively, for the quarter ended December 31, 2009 as compared to $44.2 million and $13.6 million, respectively, for the quarter ended December 31, 2008. Distributable Cash Flow for the quarter ended December 31, 2009 was $18.4 million as compared to $3.1 million for same period in 2008. The $13.1 million increase in Adjusted EBITDA quarter over quarter was primarily due to increases in realized derivative gains of $51.0 million to a gain of $5.1 million in 2009 as compared to a realized derivative loss of $45.9 million in 2008 due to significant declines in crude oil prices, offset by lower gross profit of $46.6 million as discussed below. (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 measures and reconciliations of such measures to the comparable GAAP measures.)

Net income for the fourth quarter of 2009 decreased by $10.4 million as compared to the same period in 2008, due primarily to both a decrease of $46.6 million in gross profit and an increase of $4.3 million in selling, general and administrative expenses, partially offset by increased derivative gains of $39.7 million. The decrease in gross profit was primarily due to increasing crude oil prices during the fourth quarter of 2009 as compared to the declining crude oil price environment in the fourth quarter of 2008 as well as lower overall selling prices of specialty products in the fourth quarter of 2009 compared to the fourth quarter of 2008. The increased selling, general and administrative expenses were primarily due to increased incentive compensation costs in the fourth quarter of 2009 as compared to 2008. The increased derivative gains of $39.7 million were due primarily to the 2008 settlement of certain crude oil derivative instruments that experienced a significant decline in value as crude oil prices declined in the fourth quarter of 2008.

                        For the Three Months Ended       For the Year Ended
                               December 31,                 December 31,
                        --------------------------       -------------------
                            2009          2008            2009         2008
                            ----          ----            ----         ----
                                              (In millions)
  Gross profit by segment:
  Specialty products       $27.5         $77.7          $141.6       $187.6
  Fuel products              7.1           3.5            31.5         66.3
                             ---           ---            ----           --
  Total gross profit       $34.6         $81.2          $173.1       $253.9
                           =====         =====          ======       ======


Gross profit by segment for the fourth quarter of 2009 for specialty products and fuel products was $27.5 million and $7.1 million, respectively, compared to $77.7 million and $3.5 million, respectively, for the same period in 2008. The decrease in specialty products segment gross profit quarter over quarter was primarily due to lower overall specialty products selling prices in relation to crude oil prices partially offset by increased sales volume of 18.7%. The increase in fuel products segment gross profit was due to higher gasoline crack spreads on our unhedged gasoline sales in the fourth quarter of 2009 as compared to the same period in 2008. This increase was partially offset by lower crack spreads on our unhedged diesel and jet fuel sales quarter over quarter as well as the deferral of crude oil hedging losses in the fourth quarter of 2008 of $9.4 million in our fuel products segment as compared to a deferral of crude oil hedging gains of $2.0 million in our fuel products segment in the fourth quarter of 2009.

Total specialty products segment sales volume for the fourth quarter of 2009 was 25,939 barrels per day ("bpd") as compared to 21,848 bpd for the same period in 2008, an increase of 4,091 bpd or 18.7%. Our sales volumes increase for the specialty products segment was primarily driven by lubricating oils sales volume. The increase in lubricating oils sales volume was driven primarily by increased production rates at the Shreveport refinery.

Total fuel products segment sales volume for the fourth quarter of 2009 was 30,517 bpd as compared to 26,325 bpd in the same period in 2008, an increase of 4,192 bpd, or 15.9%. Our sales volumes increase for the fuels segment was primarily due to the increase in production rates at the Shreveport refinery.

"We finished 2009 with our fourth consecutive quarter of solid Adjusted EBITDA; however, the continued economic weakness and lower fuel products crack spreads continue to weigh on our results. We were pleased to finalize our specialty products agreements with LyondellBasell during the fourth quarter and expect these agreements will have a positive impact on our 2010 results. In addition, we were pleased with the results of our common unit offering in December," said Bill Grube, Calumet's CEO and President.

LyondellBasell Agreements

As announced on September 29, 2009, Calumet entered into multiyear agreements (the "LyondellBasell Agreements") with Houston Refining LP, a wholly-owned subsidiary of LyondellBasell ("Houston Refining"), to form a long-term exclusive specialty products affiliation. Under the terms of the LyondellBasell Agreements, (i) Calumet is the exclusive purchaser of Houston Refining's naphthenic lubricating oil production at its Houston, Texas refinery and is required to purchase a minimum of approximately 3,000 bpd, and (ii) Houston Refining will process a minimum of approximately 800 bpd of white mineral oil for Calumet at its Houston, Texas refinery, which will supplement the existing white mineral oil production at Calumet's Karns City, Pennsylvania and Dickinson, Texas facilities. Calumet also has exclusive right to use certain LyondellBasell registered trademarks and tradenames including Tufflo, Duoprime, Duotreat, Crystex, Ideal and Aquamarine. The LyondellBasell Agreements were deemed effective as of November 4, 2009 upon the approval of LyondellBasell's debtor motions before the U.S. Bankruptcy Court.

December 2009 Equity Offering

On December 14, 2009, Calumet completed a follow-on public offering of common units in which Calumet sold 3,000,000 common units to the underwriters at a price to the public of $18.00 per common unit and received net proceeds of approximately $51.1 million. In addition, on January 7, 2010 Calumet sold an additional 47,778 common units to the underwriters at a price to the public of $18.00 per common unit pursuant to the underwriters' over-allotment option. In connection with this offering, Calumet's general partner contributed an additional $1.1 million to Calumet to retain its 2% general partner interest. Proceeds from this offering were used to finance working capital requirements related to the LyondellBasell Agreements and to repay borrowings under Calumet's revolving credit facility.

Quarterly Distribution

On January 5, 2010, the Partnership declared a quarterly cash distribution of $0.455 per unit for the quarter ended December 31, 2009 on all outstanding units, an increase of $0.005 per unit compared to the third quarter of 2009. The distribution was paid on February 12, 2010 to unitholders of record as of the close of business on February 2, 2010.

Operations Summary

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

                            Three Months Ended           Year Ended
                                December 31,             December 31,
                            --------------------     --------------------
                             2009          2008       2009          2008
                             ----          ----       ----          ----

  Sales volume (bpd):
  Specialty products       25,939        21,848     25,671        28,112
  Fuel products            30,517        26,325     31,415        28,120
                           ------        ------     ------        ------
  Total (1)                56,456        48,173     57,086        56,232

  Total feedstock runs
   (bpd) (2)(3)            57,148        51,055     60,081        56,243
  Facility production
   (bpd):
  Specialty products:
    Lubricating oils       12,279        10,540     11,681        12,462
    Solvents                7,397         7,062      7,749         8,130
    Waxes                     952         1,395      1,049         1,736
    Fuels                     979         1,360        853         1,208
    Asphalt and other
     by-products            7,219         5,880      7,574         6,623
                            -----         -----      -----         -----
      Total                28,826        26,237     28,906        30,159
                           ------        ------     ------        ------
  Fuel products:
    Gasoline               10,043         8,000      9,892         8,476
    Diesel                 13,194         9,891     12,796        10,407
    Jet fuel                5,299         5,407      6,709         5,918
    By-products               370           447        489           370

      Total                28,906        23,745     29,886        25,171
                           ------        ------      -----        ------
  Total facility
   production (3)          57,732        49,982     58,792        55,330
                           ======        ======     ======        ======

  -------------------

  (1)  Total sales volume includes sales from the production of our 
  facilities and, beginning in 2008, certain third-party facilities 
  pursuant to supply and/or processing agreements, and sales of 
  inventories.

  (2)  Total feedstock runs represents the barrels per day of crude oil 
  and other feedstocks processed at our facilities and certain third-party
  facilities pursuant to supply and/or processing agreements. The increase 
  in feedstock runs in the fourth quarter of 2009 as compared to 2008 was 
  primarily due to lower feedstock runs in late 2008 as a result of the 
  economic downturn and the addition of the LyondellBasell Agreements 
  effective in November 2009. 

  (3)  Total facility production represents the barrels per day of 
  specialty products and fuel products yielded from processing crude oil 
  and other feedstocks at our facilities and, beginning in 2008, certain 
  third-party facilities pursuant to supply and/or processing agreements. 
  The difference between total production and total feedstock runs is 
  primarily a result of the time lag between the input of feedstock and 
  production of finished products and volume loss.  The change in 
  production mix from 2008 to 2009 to higher fuels production is due 
  to the economic impact of demand for certain specialty products.


  Credit Agreement Covenant Compliance

Compliance with the financial covenants pursuant to Calumet's credit agreements is measured quarterly based upon performance over the most recent four fiscal quarters, and as of December 31, 2009, Calumet continued to be in compliance with all financial covenants under its credit agreements.

While assurances cannot be made regarding our future compliance with these covenants and being cognizant of the general uncertain economic environment, Calumet believes that it will continue to maintain compliance with such financial covenants.

Revolving Credit Facility Capacity

On December 31, 2009, Calumet had availability on its revolving credit facility of $107.3 million, based on a $194.0 million borrowing base, $46.9 million in outstanding standby letters of credit, and borrowings of $39.9 million. Calumet believes that it will have sufficient cash flow from operations and borrowing capacity to meet Calumet's financial commitments, debt service obligations, contingencies and anticipated capital expenditures. However, Calumet is subject to business and operational risks that could materially adversely affect its cash flows. A material decrease in Calumet's cash flow from operations or a significant, sustained decline in crude oil prices would likely produce a corollary material adverse effect on Calumet's borrowing capacity under its revolving credit facility and potentially Calumet's ability to comply with the covenants under Calumet's credit facilities. Substantial declines in crude oil prices, if sustained, may materially diminish Calumet's borrowing base, which is based in part on the value of Calumet's crude oil inventory, which could result in a material reduction in Calumet's borrowing capacity under Calumet's revolving credit facility. A significant increase in crude oil prices, if sustained, would likely result in increased working capital funded by borrowings under its revolving credit facility.

About the Partnership

The Partnership is a leading independent producer of high-quality, specialty hydrocarbon products in North America. The Partnership processes crude oil and other feedstocks into customized lubricating oils, white oils, solvents, petrolatums, waxes and other specialty products used in consumer, industrial and automotive products.

The Partnership also produces fuel products including gasoline, diesel and jet fuel. The Partnership is based in Indianapolis, Indiana and has five facilities located in northwest Louisiana, western Pennsylvania and southeastern Texas.

A conference call is scheduled for 1:00 p.m. ET (12:00 p.m. CT) on Wednesday, February 17, 2010, to discuss the financial and operational results for the fourth quarter of 2009. Anyone interested in listening to the presentation may call 800-798-2884 and enter passcode 95049820. For international callers, the dial-in number is 617-614-6207 and the passcode is 95049820.

The telephonic replay of the conference call is available in the United States by calling 888-286-8010 and entering passcode 73664682. International callers can access the replay by calling 617-801-6888 and entering passcode 73664682. The replay will be available beginning Wednesday, February 17, 2010, at approximately 4:00 p.m. until Wednesday, March 3, 2010.

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 overall demand for specialty hydrocarbon products, fuels and other refined products; our ability to produce specialty products and fuels that meet our customers' unique and precise specifications; the impact of fluctuations and rapid increases and decreases in crude oil and crack spread prices, including the impact on our liquidity; the results of the Partnership's hedging and risk management activities; the availability of, and the Partnership's ability to consummate, acquisition or combination opportunities; labor relations; the ability of the Partnership to comply with the financial covenants contained in its credit facilities; 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 ratings 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, counterparties; the impact of current and future laws, rulings and governmental regulations; shortages or cost increases of power supplies, natural gas, materials or labor; hurricane or other weather interference with business operations; 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 2009 Forms 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 quarterly and annual reconciliations of net income (loss) to EBITDA, Adjusted EBITDA and Distributable Cash Flow and (in the case of EBITDA and Adjusted EBITDA) an annual reconciliation to net cash provided by 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, support our indebtedness and meet minimum quarterly
      distributions;

  --  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 (including debt extinguishment costs), taxes and depreciation and amortization. We define Adjusted EBITDA to be Consolidated EBITDA as defined in our credit facility agreements. 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 derivative activities; (e) unrealized items decreasing net income; (f) other non-recurring expenses reducing net income which do not represent a cash item for such period; and (g) all non-recurring restructuring charges associated with the Penreco acquisition minus (3)(a) tax credits; (b) unrealized items increasing net income; (c) unrealized gains from mark to market accounting for derivative 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 and interest coverage tests 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 replacement capital expenditures, cash interest paid (excluding capitalized interest) and income tax expense.

                     CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (In thousands)


                          For the Three Months     For the Year Ended
                           Ended December 31,         December 31,
                           ------------------      ------------------
                            2009         2008       2009        2008
                            ----         ----       ----        ----
                         Unaudited    Unaudited   Unaudited

  Sales                   $495,865     $498,680  $1,846,600  $2,488,994
  Cost of sales            461,257      417,487   1,673,498   2,235,111
                           -------      -------   ---------   ---------
  Gross profit              34,608       81,193     173,102     253,883
  Operating costs
   and expenses:
    Selling, general
     and
     administrative          8,873        4,601      32,570      34,267
    Transportation          18,205       18,017      67,967      84,702
    Taxes other than
     income taxes              683        1,213       3,839       4,598
    Other                      479          618       1,366       1,576
                               ---          ---         ---       -----
  Operating income           6,368       56,744      67,360     128,740
                             -----       ------      ------     -------
  Other income
   (expense):
    Interest expense        (8,239)      (9,566)    (33,573)    (33,938)
    Interest income             83           43         170         388
    Debt
     extinguishment
     costs                       -            -           -        (898)
    Realized gain
     (loss) on
     derivative
     instruments             5,129      (45,861)      8,342     (58,833)
    Unrealized gain
     on derivative
     instruments             6,064       17,320      23,736       3,454
    Gain on sale of
     mineral rights              -            -           -       5,770
    Other                   (1,157)        (194)     (4,099)         11
                            ------         ----      ------         ---
  Total other
   income (expense)          1,880      (38,258)     (5,424)    (84,046)
                             -----      -------      ------     -------
  Net income before
   income taxes              8,248       18,486      61,936      44,694
  Income tax
   (benefit)
   expense                      81          (50)        151         257
                               ---          ---         ---         ---
  Net income                $8,167      $18,536     $61,785     $44,437
                            ======      =======     =======     =======
  Allocation of net
   income :
    Net income              $8,167      $18,536     $61,785     $44,437
    Less:
      General partner's
       interest in net
       income                  163          371       1,236         889
                               ---          ---       -----         ---
    Net income
     available to
     limited partners       $8,004      $18,165     $60,549     $43,548
                            ======      =======     =======     =======
    Weighted average
     limited partner
     units
     outstanding -
     basic and
     diluted                32,786       32,232      32,372      32,232
                            ======       ======      ======      ======
    Common and
     subordinated
     unitholders'
     basic and
     diluted net
     income  per unit        0.240        0.560       1.870       1.350
                             =====        =====       =====       =====
  Cash
   distributions
   declared per
   common and
   subordinated
   unit                     $0.455       $0.450      $1.805      $1.980
                            ======       ======      ======      ======



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

                                         December 31,    December 31,
                                             2009            2008
                                         ------------    ------------
                                           Unaudited

                        ASSETS

  Current assets:

    Cash                                           $49            $48
    Accounts receivable, net                   122,768        109,556
    Inventories                                137,250        118,524
    Derivative assets                           30,904         71,199
    Prepaid expenses and other current
     assets                                      8,672          5,824
                                                 -----          -----
  Total current assets                         299,643        305,151
  Property, plant and equipment, net           629,275        659,684
  Goodwill                                      48,335         48,335
  Other intangible assets, net                  38,093         49,502
  Other noncurrent assets, net                  16,510         18,390

  Total assets                              $1,031,856     $1,081,062
                                            ==========     ==========

               LIABILITIES AND PARTNERS' CAPITAL
  Current liabilities:

    Accounts payable                          $109,976        $93,855
    Other current liabilities                   20,165         23,360
    Current portion of long-term debt            5,009          4,811
    Derivative liabilities                       4,766         15,827

  Total current liabilities                    139,916        137,853
  Pension and postretirement benefit
   obligations                                   9,433          9,717
  Other long-term liabilities                    1,111              -
  Long-term debt, less current
   portion                                     396,049        460,280
                                               -------        -------
  Total liabilities                            546,509        607,850
  Partners' capital:

    Partners' capital                          472,703        417,646
    Accumulated other comprehensive
     income                                     12,644         55,566
                                                ------         ------
  Total partners' capital                      485,347        473,212
                                                                    -
  Total liabilities and partners'
   capital                                  $1,031,856     $1,081,062
                                            ==========     ==========




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

                                                         For the Year Ended
                                                            December 31,
                                                        -------------------
                                                         2009          2008
                                                         ----          ----
                                                       Unaudited
  Operating activities
  Net income                                          $61,785       $44,437
  Adjustments to reconcile net income to net cash
   provided by operating activities:

    Depreciation and amortization                      65,407        59,261
    Amortization of turnaround costs                    7,256         2,468
    Provision for doubtful accounts                      (916)        1,448
    Non-cash debt extinguishment costs                      -           898
    Unrealized gain on derivative
     instruments                                      (23,736)       (3,454)
    Loss on disposal of fixed assets                    4,455           211
    Gain on sale of mineral rights                          -        (5,770)
    Other non-cash activities                           1,441         1,501
    Changes in assets and liabilities:

      Accounts receivable                             (12,296)       45,042
      Inventories                                     (18,726)       55,532
      Prepaid expenses and other current
       assets                                              (8)        5,834
      Derivative activity                               8,531        41,757
      Deposits                                         (2,840)       (4,000)
      Other noncurrent assets                          (6,889)      (10,211)
      Accounts payable                                 15,951      (103,136)
      Other current liabilities                          (905)       (1,284)
      Pension and postretirement benefit
       obligations                                      1,233          (193)
      Other long-term liabilities                       1,111             -

  Net cash provided by operating
   activities                                         100,854       130,341
  Investing activities

  Additions to property, plant and
   equipment                                          (23,521)     (167,702)
  Acquisition of Penreco, net of cash
   acquired                                                 -      (269,118)
  Settlement of derivative instruments                      -       (49,746)
  Proceeds from sale of mineral rights                      -         6,065
  Proceeds from disposal of property,
   plant and equipment                                    807            40
                                                          ---           ---
  Net cash used in investing activities               (22,714)     (480,461)
  Financing activities

  Proceeds from borrowings - revolving
   credit facility                                    805,361     1,424,732
  Repayments of borrowings - revolving
   credit facility                                   (868,000)   (1,329,150)
  Repayment of borrowings - prior term
   loan credit facility                                     -       (30,099)
  Proceeds from borrowings - existing
   term loan credit facility                                -       385,000
  Repayment of borrowings - new term
   loan facility                                       (3,850)       (9,915)
  Discount on existing term loan                            -       (17,400)
  Debt issuance costs                                       -        (9,633)
  Payments on capital lease obligation                 (1,542)         (618)
  Proceeds from public offerings, net                  51,225             -
  Contributions from Calumet GP, LLC                    1,102             -
  Change in bank overdraft                             (3,013)        3,471
  Purchase of common units for unit
   grants                                                (164)         (115)
  Distributions to partners                           (59,258)      (66,140)
                                                      -------       -------
  Net cash provided by (used in)
   financing activities                               (78,139)      350,133
                                                      -------       -------
  Net increase in cash                                      1            13
  Cash at beginning of year                                48            35

  Cash at end of year                                     $49           $48
                                                          ===           ===
  Supplemental disclosure of cash flow
   information

  Interest paid                                       $30,343       $33,667
                                                      =======       =======
  Income taxes paid                                      $161           $30
                                                         ====           ===
  Supplemental disclosure of noncash financing
   and investing activities

  Equipment acquired under capital
   lease                                               $1,659          $171
                                                       ======          ====



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


                                   Three Months Ended        Year Ended
                                       December 31,          December 31,
                                   ------------------     ------------------
                                    2009        2008       2009        2008
                                    ----        ----       ----        ----
                                 Unaudited   Unaudited  Unaudited  Unaudited
  Reconciliation of Net Income
   to EBITDA, Adjusted EBITDA
   and Distributable Cash
   Flow:
  Net income                      $8,167     $18,536    $61,785     $44,437
    Add:

      Interest expense
       and debt
       extinguishment
       costs                       8,239       9,566     33,573      34,836
      Depreciation and
       amortization               15,707      16,177     62,103      56,045
      Income tax
       (benefit) expense              81         (50)       151         257
                                     ---         ---        ---         ---
  EBITDA                         $32,194     $44,229   $157,612    $135,575
                                 -------     -------   --------    --------
    Add:

      Unrealized gain
       from mark to
       market accounting
       for hedging
       activities                $(4,027)   $(26,693)  $(14,458)   $(11,509)
      Prepaid non-
       recurring expenses
       and accrued non-
       recurring

       expenses, net of
       cash outlays               (1,408)     (3,897)     2,863       4,009
                                  ------      ------      -----       -----
      Adjusted EBITDA            $26,759     $13,639   $146,017    $128,075
                                 -------     -------   --------    --------
  Less:

    Replacement capital
     expenditures (1)             (1,048)       (887)   (13,787)     (6,304)
    Cash interest
     expense (2)                  (7,219)     (9,662)   (30,343)    (27,000)
    Income tax expense               (81)         50       (151)       (257)
                                     ---                   ----        ----
  Distributable Cash
   Flow                          $18,411      $3,140   $101,736     $94,514
                                 =======      ======   ========     =======

  ____________

  (1)  Replacement capital expenditures are defined as those capital 
  expenditures which do not increase operating capacity or sales from 
  existing levels.

  (2)  Represents cash interest paid by the Partnership, excluding 
  capitalized interest.


                     CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
              RECONCILIATION OF ADJUSTED EBITDA AND EBITDA TO NET CASH
                        PROVIDED BY  OPERATING ACTIVITIES
                                  (In thousands)

                                                            Year Ended
                                                            December 31,
                                                        ------------------
                                                         2009        2008
                                                         ----        ----
                                                      Unaudited   Unaudited
  Reconciliation of Adjusted EBITDA and EBITDA to net
   cash provided by operating activities:

  Adjusted EBITDA                                      $146,017    $128,075
  Add:

  Unrealized gain from mark to market accounting
   for hedging activities                                14,458      11,509
  Prepaid non-recurring expenses and accrued
   non-recurring expenses, net of cash outlays           (2,863)     (4,009)
                                                         ------      ------
  EBITDA                                               $157,612    $135,575
                                                       ========    ========
    Add:

      Interest expense and debt extinguishment
       costs, net                                       (29,902)    (31,440)
      Unrealized gain on derivative instruments         (23,736)     (3,454)
      Income tax expense                                   (151)       (257)
      Provision for doubtful accounts                      (916)      1,448
      Non-cash debt extinguishment costs                      -         898
  Changes in assets and liabilities:
      Accounts receivable                               (12,296)     45,042
      Inventory                                         (18,726)     55,532
      Other current assets                               (2,848)      1,834
      Derivative activity                                 8,531      41,757
      Accounts payable                                   15,951    (103,136)
      Other current liabilities                            (905)     (1,284)
      Other, including changes in noncurrent assets
       and liabilities                                    8,240     (12,174)
                                                          -----     -------
  Net cash provided by operating activities            $100,854    $130,341
                                                       ========    ========




                     CALUMET SPECIALTY PRODUCTS PARTNERS, L.P.
              UPDATE ON EXISTING COMMODITY DERIVATIVE INSTRUMENTS
                                 December 31, 2009

  Fuel Products Segment

  The following tables provide information about our derivative 
  instruments related to our fuel products segment as of December 31, 2009:

                                         
  Crude Oil Swap Contracts by            Barrels
   Expiration Dates                     Purchased     BPD     ($/Bbl)
  ---------------------------           ---------     ---     -------
  First Quarter 2010                    1,800,000    20,000    $67.29
  Second Quarter 2010                   1,820,000    20,000     67.29
  Third Quarter 2010                    1,840,000    20,000     67.29
  Fourth Quarter 2010                   1,840,000    20,000     67.29
  Calendar Year 2011                    5,614,000    15,381     76.54
                                        ---------               -----
  Totals                               12,914,000
  Average price                                                $71.31


                                            
  Diesel Swap Contracts by               Barrels
   Expiration Dates                       Sold        BPD     ($/Bbl)
  ------------------------               -------      ---     -------
  First Quarter 2010                    1,170,000    13,000    $80.41
  Second Quarter 2010                   1,183,000    13,000     80.41
  Third Quarter 2010                    1,196,000    13,000     80.41
  Fourth Quarter 2010                   1,196,000    13,000     80.41
  Calendar Year 2011                    2,371,000     6,496     90.58
                                        ---------               -----
  Totals                                7,116,000
  Average price                                                $83.80


                                        
  Jet Fuel Swap Contracts by             Barrels
   Expiration Dates                       Sold         BPD    ($/Bbl)
  --------------------------             -------       ---    -------
  Calendar Year 2011                    2,514,000     6,888    $88.51
                                        ---------              ------
  Totals                                2,514,000
  Average price                                                $88.51


  Gasoline Swap Contracts by              Barrels
   Expiration Dates                         Sold       BPD     ($/Bbl)
  --------------------------              -------      ---     -------
  First Quarter 2010                      630,000     7,000    $75.28
  Second Quarter 2010                     637,000     7,000     75.28
  Third Quarter 2010                      644,000     7,000     75.28
  Fourth Quarter 2010                     644,000     7,000     75.28
                                          729,000
  Calendar Year 2011                      729,000     1,997     83.53
                                          -------               -----
  Totals                                3,284,000
  Average price                                                $77.11


  The following table provides a summary of these derivatives and implied 
  crack spreads for the crude oil, diesel and gasoline swaps disclosed 
  above, all of which are designated as hedges.


                                                              Implied
                                                               Crack
                                         Barrels               Spread
  Swap Contracts by Expiration Dates    Purchased     BPD     ($/Bbl)
  ----------------------------------    ---------     ---     -------
  First Quarter 2010                    1,800,000    20,000    $11.32
  Second Quarter 2010                   1,820,000    20,000     11.32
  Third Quarter 2010                    1,840,000    20,000     11.32
  Fourth Quarter 2010                   1,840,000    20,000     11.32
  Calendar Year 2011                    5,614,000    15,381     12.16
                                          -------               -----
  Totals                               12,914,000
  Average price                                                $11.68


  At December 31, 2009, the Company had the following derivatives related 
  to crude oil sales and gasoline purchases in its fuel products segment, 
  none of which are designated as hedges.


  Crude Oil Swap Contracts by             Barrels
   Expiration Dates                        Sold        BPD     ($/Bbl)
  ----------------------------            -------      ---     -------
  First Quarter 2010                      135,000     1,500    $58.25
  Second Quarter 2010                     136,500     1,500     58.25
  Third Quarter 2010                      138,000     1,500     58.25
  Fourth Quarter 2010                     138,000     1,500     58.25
                                          -------               -----
  Totals                                  547,500
  Average price                                                $58.25


                                                
  Gasoline Swap Contracts by             Barrels
   Expiration Dates                      Purchased     BPD    ($/Bbl)
  --------------------------             ---------     ---     -------
  First Quarter 2010                      135,000     1,500    $58.42
  Second Quarter 2010                     136,500     1,500     58.42
  Third Quarter 2010                      138,000     1,500     58.42
  Fourth Quarter 2010                     138,000     1,500     58.42
                                          -------
  Totals                                  547,500
  Average price                                                $58.42


  To summarize, at December 31, 2009, the Company had the following crude 
  oil and gasoline derivative instruments not designated as hedges in its 
  fuel products segment. These trades were used to economically lock in a 
  portion of the mark-to-market valuation gain for the above crack spread 
  trades.

                                                               Implied
                                                                Crack
                                          Barrels               Spread
  Swap Contracts by Expiration Dates     Purchased     BPD     ($/Bbl)
  ----------------------------------     ---------     ---     -------
  First Quarter 2010                      135,000     1,500     $0.17
  Second Quarter 2010                     136,500     1,500      0.17
  Third Quarter 2010                      138,000     1,500      0.17
  Fourth Quarter 2010                     138,000     1,500      0.17
                                          -------                ----
  Totals                                  547,500
  Average price                                                 $0.17


  At December 31, 2009, the Company had the following put options related 
  to jet fuel crack spreads in its fuel products segment, none of which 
  are designated as hedges.


                                                           Average  Average
                                                           Sold     Bought
  Jet Fuel Put Option Crack Spread Contracts                 Put      Put
   by Expiration Dates                       Barrels  BPD  ($/Bbl)  ($/Bbl)
  ------------------------------------------ -------  ---  -------  -------
  Calendar Year 2011                         814,000 2,230   $4.17    $6.23
                                               -----         -----    -----
  Totals                                     814,000
  Average price                                              $4.17    $6.23


  Specialty Products Segment

  At December 31, 2009, the Company had the following crude oil derivative 
  instruments related to crude oil purchases in its specialty products 
  segment, none of which are designated as hedges.


                                                Average          Average
                                                Bought  Average   Sold
  Crude Oil Put/Swap/Call                         Put     Swap    Call
   Contracts by Expiration Dates Barrels   BPD  ($/Bbl) ($/Bbl)  ($/Bbl)
  ------------------------------ -------   ---  ------- -------  -------
  January 2010                   186,000  6,000  $68.32  $80.43   $90.43
                                  ------         ------  ------   ------
  Totals                         186,000
  Average price                                  $68.32  $80.43   $90.43

First Call Analyst:
FCMN Contact: kathy.buck@CALUMETSPECIALTY.com

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/