Conor Fitzpatrick's questions to Calumet, Inc. /DE (CLMT) leadership • Q2 2025
Question
Conor Fitzpatrick from Bank of America Merrill Lynch asked for details on the specific operational improvements driving the consistent reduction in OpEx per gallon in the renewables business and questioned how Calumet views the attractiveness of different regional SAF markets, such as the West Coast, Gulf Coast, and Midwest.
Answer
CEO Todd Borgmann explained that the primary drivers for cost reduction have been significant improvements in water treatment efficiency and a meaningful reduction in on-site third-party contractors as the internal team's expertise has grown. Regarding SAF markets, Borgmann emphasized Calumet's logistical flexibility via the BNSF railway, allowing them to target advantaged markets in the U.S. Midwest (state tax credits), the West Coast (LCFS programs), and Canada, ensuring they can capture maximum value.