80% reduction in growth capital spending
Calumet Specialty Products Partners (CLMT) anticipates total capital expenditures between $125 million and $150 million for fiscal 2016. Out of these, $70 million to $80 million is expected to be capital improvement expenditures and joint venture contributions.
Capital improvement expenditures and joint venture contributions amounted to $362 million in 2015.
The above graph shows CLMT’s capital spending over the years as well as its expected spending in 2016. With CLMT’s major expansion projects over, the company expects reduced capital spending to improve free cash flows in 2016.
In the final part of this series, let’s see what Wall Street analysts recommend for CLMT after its 2Q16 earnings.