Why Calumet Stock Topped the Market Today
Key Points
Specifically, they will notably improve its balance sheet.
If Calumet can keep earning exemptions, it stands to do very well going forward.
- 10 stocks we like better than Calumet ›
Oil products specialist Calumet (NASDAQ: CLMT) had some very positive, fundamentals-boosting news to report on Tuesday, and investors were there for it. They eagerly snapped up shares of the company, sending Calumet stock up 3% in a trading session that saw the bellwether S&P 500 index slump by 0.7%.
Exemptions granted
Calumet announced that the U.S. Environmental Protection Agency (EPA) notified it on Monday that the company had received full exemptions on two of its refinery petitions. These cover the operations of those facilities in the 2025 compliance year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
The EPA mandates oil refiners in this country to blend certain minimum amounts of renewable fuels as part of their operations -- or purchase credits called renewable identification numbers (RINs) if they are unable to do so on their own. Yet under the agency's small refinery exemption rules, companies such as Calumet can be freed from these requirements for certain periods.
So whenever the company isn't on the hook to either produce those fuels or buy credits to compensate, its financials benefit, at times, strongly. The exempted period is one of those times, as Calumet said it'll be able to remove 71 million RINs from its balance sheet, leaving a total of 129 million RINs valued at around $309 million in total.
Lobbying for more
There might be more where that came from. Calumet added that it is in talks with the EPA over partial exemptions granted from 2022 to 2024. These are also under judicial review, so they might not stand legally.
Regardless, since this is a clear win for the company, it's little wonder its stock rose on the news. Even if those legacy partial exemptions aren't knocked down in some way, I think Calumet will earn new ones in the future -- although we have to keep in mind that exemptions are always subject to regulatory and/or legal developments.
Should you buy stock in Calumet right now?
Before you buy stock in Calumet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Calumet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 2, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
