The increase in gross profit was mainly because of the major decline in crude oil prices leading up to and sustained during the first quarter of 2009 as compared to the rapidly rising crude oil price environment in the first quarter of 2008.

The increased derivative gains of $30.6 million are included the changes in both non-cash gains of $36.2 million and cash losses of $5.6 million. The raise in non-cash derivative gains is mainly related to Calumet Specialty Products Partners’ fuel products segment and such gains either may not be realized or may be realized in different amounts upon settlement. These non-cash derivative gains are not comprised in the company’s adjusted EBITDA of $50.1 million for the first quarter of 2009.

Earnings before interest expense, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA were $99.7 million and $50.1 million, respectively, for the first quarter 2009 as compared with the $12.2 million and $14.9 million, correspondingly, for the year-ago quarter. Distributable cash flow for the quarter ended March 31, 2009 was $38.9 million as compared with the $13.2 million in the year-ago quarter.

Gross profit by segment for the first quarter of 2009 for specialty products and fuel products was $59.9 million and $19.1 million, correspondingly, compared to $22.3 million and $12.5 million, respectively, in the year-ago quarter. The increase in specialty products segment gross profit quarter over quarter was mainly because of the major decline in crude oil prices, Calumet Specialty Products Partners’ primary raw material, during the first quarter of 2009. Partly offsetting the impact of lower crude oil prices was lower sales volumes in lubricating oils, solvents and waxes because of economic conditions impacting customer demand. The raise in the company’s fuel products segment gross profit was due primarily to increased sales volume resulting from higher throughput rates at the Shreveport refinery and increased gains on derivatives counterbalanced by lower overall crack spreads in the first quarter of 2009 compared to the first quarter of 2008.

Our proactive approach to managing our business in the current economic environment helped us to achieve good performance in the first quarter despite weaker demand for specialty products. We are attempting to offset the impacts of this weaker demand by broadening our marketing efforts and focusing on specialty product development. We continue to focus on efficient plant operations to meet current demand levels and controlling operating costs. We also plan to continue to increase throughput rates at our Shreveport refinery to more fully utilize its expanded capacity as market conditions dictate. We believe these efforts will help us to enhance our liquidity during this continued period of economic uncertainty, said Bill Grube, Calumet Specialty Products Partners’ chief executive officer and president.

Quarterly Distribution

As announced on April 16, 2009, the partnership declared a quarterly cash distribution of $0.45 per unit for the first quarter of 2009 on all outstanding units. The distribution is payable on May 15, 2009 to unitholders of record as of the close of business on May 5, 2009.

Credit Agreement Covenant Compliance

Compliance with the financial covenants pursuant to Calumet Specialty Products Partners’ credit agreements is measured quarterly based upon performance over the most recent four fiscal quarters, and as of March 31, 2009, the company has continued to be in compliance with all financial covenants under its credit agreements and achieved improvement in Calumet Specialty Products Partners’ financial covenant performance metrics compared to the fourth quarter of 2008.

While assurances cannot be made regarding Calumet Specialty Products Partners’ future compliance with these covenants and being cognizant of the general uncertain economic environment, the company believes that it will carry on to maintain compliance with such financial covenants and improve its liquidity.

Revolving Credit Facility Capacity

On March 31, 2009, Calumet Specialty Products Partners had availability on its revolving credit facility of $69.2 million, based on a $182.3 million borrowing base, $20.1 million in outstanding standby letters of credit, and outstanding borrowings of $93 million. The company believes that it has sufficient cash flow from operations and borrowing capacity to meet its financial commitments, debt service obligations, contingencies and anticipated capital expenditures. However, the company is subject to business and operational risks that could materially adversely affect our cash flows. A material decrease in the company’s cash flow from operations or a significant, sustained decline in crude oil prices would likely produce a corollary material adverse effect on its borrowing capacity under Calumet Specialty Products Partners’ revolving credit facility and potentially its ability to comply with the covenants under the company’s credit facilities. Further substantial declines in crude oil prices, if sustained, may materially diminish Calumet Specialty Products Partners’ borrowing base, which is based in part on the value of its crude oil inventory, which could result in a material reduction in its borrowing capacity under the revolving credit facility.