|
|
 |
|
Viewing report
|
|
|
|
Calumet Specialty Products Partners L.P.
Standard & Poors, Nov 2006
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
Hedges on the Gulf Coast 2:1:1 crack spread should provide some stability to cash flows from fuel sales; Operating three refineries provides some asset and cash flow diversification in the specialty product business; and Debt leverage is low following 2006's IPO and secondary offering. Virtually all fuel production occurs at one refinery (Shreveport); A lack of a track record for fuel production at the Shreveport refinery; Small size (65,500 barrels per day) limits economies of scale; and Growth of the fuels business could add volatility to earnings and cash flow, absent significant hedging at favorable crack spreads. The ratings on Calumet Specialty Products Partners L.P. reflect its position as a small, independent petroleum refiner operating in a very competitive, erratically...
Companies mentioned in this report are: Calumet Specialty Products Partners L.P.
Action: Review
|
|
|
|
