CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today
announced net income attributable to CVR Energy stockholders of $21
million, or 21 cents per diluted share, and EBITDA of $103
million for the second quarter of 2024, compared to net income
attributable to CVR Energy stockholders of $130 million, or $1.29
per diluted share, and EBITDA of $300 million for the second
quarter of 2023. Excluding the adjustments shown in the
corresponding earnings release tables, adjusted earnings per
diluted share for the second quarter of 2024 was 9 cents and
adjusted EBITDA was $87 million, compared to adjusted earnings per
diluted share of $1.64 and adjusted EBITDA of $347 million in the
second quarter of 2023.
“CVR Energy’s 2024 second quarter earnings
results were attributable to lower refining margins due to a
decrease in the Group 3 2-1-1 crack spread and reduced throughputs
related to a fire at the Wynnewood refinery that occurred during
severe weather,” said Dave Lamp, CVR Energy’s Chief Executive
Officer. “CVR Energy was pleased to announce a second quarter 2024
cash dividend of 50 cents per share.
“CVR Partners achieved solid operating results
for the second quarter of 2024 driven by a combined ammonia
production rate of 102 percent,” Lamp said. “CVR Partners was
pleased to declare a second quarter 2024 cash distribution of $1.90
per common unit.”
Petroleum
The Petroleum Segment reported second quarter
2024 net income of $18 million and EBITDA of $56 million, compared
to net income of $194 million and EBITDA of $220 million for the
second quarter of 2023. Adjusted EBITDA for the Petroleum Segment
was $37 million for the second quarter of 2024, compared to $258
million for the second quarter of 2023.
Combined total throughput for the second quarter
of 2024 was approximately 186,000 barrels per day (bpd) compared to
approximately 201,000 bpd of combined total throughput for the
second quarter of 2023.
Refining margin for the second quarter of 2024
was $185 million, or $10.94 per total throughput barrel, compared
to $333 million, or $18.21 per total throughput barrel, during
the same period in 2023. Included in our second quarter 2024
refining margin were favorable derivative impacts of
$17 million from unrealized gains on open crack spread swap
positions and favorable inventory valuation impacts of $2 million.
Excluding these items, adjusted refining margin for the second
quarter of 2024 was $9.81 per barrel, compared to an adjusted
refining margin per barrel of $20.27 for the second quarter of
2023. The decrease in adjusted refining margin per barrel was
primarily due to a decrease in the Group 3 2-1-1 crack spread.
Nitrogen Fertilizer
The Nitrogen Fertilizer Segment reported net
income of $26 million and EBITDA of $54 million on net
sales of $133 million for the second quarter of 2024, compared to
net income of $60 million and EBITDA of $87 million on
net sales of $183 million for the second quarter of 2023.
Production at the CVR Partners, LP’s (“CVR
Partners”) fertilizer facilities remained consistent compared to
the second quarter of 2023, producing a combined 221,000 tons of
ammonia during the second quarter of 2024, of which 69,000 net tons
were available for sale while the rest was upgraded to other
fertilizer products, including 337,000 tons of urea ammonia nitrate
(“UAN”). During the second quarter 2023, the fertilizer facilities
produced a combined 219,000 tons of ammonia, of which 70,000 net
tons were available for sale while the remainder was upgraded to
other fertilizer products, including 339,000 tons of UAN.
For the second quarter 2024, average realized
gate prices for UAN showed a reduction compared to the prior year,
down 15 percent to $268 per ton, and ammonia was down 26 percent
over the prior year to $520 per ton. Average realized gate
prices for UAN and ammonia were $316 and $707 per ton,
respectively, for the second quarter of 2023.
Corporate and Other
The Company reported an income tax benefit of
$26 million, or (219.7) percent of income before income taxes, for
the three months ended June 30, 2024, compared to an income tax
expense of $44 million, or 20.9 percent of income before income
taxes, for the three months ended June 30, 2023. The decrease in
income tax expense was primarily due to a decrease in overall
pretax earnings, while the change in the effective tax rate was
primarily due to changes in pretax earnings attributable to
noncontrolling interest and the impact of federal and state tax
credits and incentives in relation to overall pretax earnings.
The renewable diesel unit at the Wynnewood
refinery had total vegetable oil throughputs for the second quarter
of 2024 of approximately 11.7 million gallons, down from 17.8
million gallons in the second quarter of 2023. The decrease was
primarily due to the turnaround at the Wynnewood refinery and a
catalyst change at the renewable diesel unit during the spring of
2024, in addition to downtime due to a fire at the Wynnewood
refinery in April 2024.
Cash, Debt and Dividend
Consolidated cash and cash equivalents were $586
million at June 30, 2024, an increase of $5 million from December
31, 2023. Consolidated total debt and finance lease obligations
were $1.6 billion at June 30, 2024, including $548 million held by
the Nitrogen Fertilizer Segment.
CVR Energy announced a second quarter 2024 cash
dividend of 50 cents per share. The quarterly dividend, as declared
by CVR Energy’s Board of Directors, will be paid on August 19,
2024, to stockholders of record as of August 12, 2024.
Today, CVR Partners announced that the Board of
Directors of its general partner declared a second quarter 2024
cash distribution of $1.90 per common unit, which will be paid on
August 19, 2024, to common unitholders of record as of
August 12, 2024.
Second Quarter
2024 Earnings Conference Call
CVR Energy previously announced that it will
host its second quarter 2024 Earnings Conference Call on Tuesday,
July 30, at 1 p.m. Eastern. The Earnings Conference Call may
also include discussion of Company developments, forward-looking
information and other material information about business and
financial matters.
The second quarter 2024 Earnings Conference Call will be webcast
live and can be accessed on the Investor Relations section of CVR
Energy’s website at www.CVREnergy.com. For investors or analysts
who want to participate during the call, the dial-in number is
(877) 407-8291. The webcast will be archived and available for 14
days at https://edge.media-server.com/mmc/p/dt2waput. A repeat of
the call also can be accessed for 14 days by dialing (877)
660-6853, conference ID 13747772.
Forward-Looking StatementsThis
news release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Statements concerning current estimates, expectations and
projections about future results, performance, prospects,
opportunities, plans, actions and events and other statements,
concerns, or matters that are not historical facts are
“forward-looking statements,” as that term is defined under the
federal securities laws. These forward-looking statements include,
but are not limited to, statements regarding future: continued safe
and reliable operations; drivers of our results; income, sales, and
earnings per share; EBITDA and Adjusted EBITDA; renewable
identification numbers (“RINs”) expense; asset utilization,
capture, production volume, product yield and crude oil gathering
rates; cash flow generation; production; operating income and net
sales; throughput, including the impact of turnarounds or fires
thereon; refining margin, including contributors thereto; impact of
costs to comply with the RFS and revaluation of our RFS liability;
crude oil and refined product pricing impacts on inventory
valuation; dividend yield; derivative gains and losses and the
drivers thereof; crack spreads, including the drivers thereof;
demand trends; RIN generation levels; ethanol and biodiesel
blending activities; inventory levels; benefits of our corporate
transformation to segregate our renewables business; access to
capital and new partnerships; RIN pricing, including its impact on
performance and the Company’s ability to offset the impact thereof;
disruptions to operations, including impacts on results; carbon
capture and decarbonization initiatives; ammonia and UAN pricing;
global fertilizer industry conditions; grain prices; crop inventory
levels; crop and planting levels; demand for refined products;
economic downturns and demand destruction; production rates;
production levels and utilization at our nitrogen fertilizer
facilities; nitrogen fertilizer sales volumes, including factors
driving same; ability to and levels to which we upgrade ammonia to
other fertilizer products, including UAN; income tax expense,
including the drivers thereof; changes to pretax earnings and our
effective tax rate; the availability of tax credits and incentives;
production rates and operations capabilities of our renewable
diesel unit, including the ability to return to hydrocarbon
service; renewable feedstock throughput; purchases under share or
unit repurchase programs (if any), or the termination thereof;
reduction of outstanding debt, including through the redemption of
outstanding notes; cash and cash equivalent levels; dividends and
distributions, including the timing, payment and amount (if any)
thereof; direct operating expenses, capital expenditures,
depreciation and amortization and turnaround expense; cash
reserves; timing of turnarounds; impacts of any pandemic; labor
supply shortages, difficulties, disputes or strikes, including the
impact thereof; the April 2024 fire at the Wynnewood Refinery
including the impact thereof on our operations, financial position
or otherwise; and other matters. You can generally identify
forward-looking statements by our use of forward-looking
terminology such as “outlook,” “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,”
or “will,” or the negative thereof or other variations thereon or
comparable terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. Investors are cautioned that
various factors may affect these forward-looking statements,
including (among others) the health and economic effects of any
pandemic, demand for fossil fuels and price volatility of crude
oil, other feedstocks and refined products; the ability of Company
to pay cash dividends and of CVR Partners to make cash
distributions; potential operating hazards, including the impacts
of fires at our facilities; costs of compliance with existing or
new laws and regulations and potential liabilities arising
therefrom; impacts of the planting season on CVR Partners; our
controlling shareholder’s intention regarding ownership of our
common stock and potential strategic transactions involving us or
CVR Partners; general economic and business conditions; political
disturbances, geopolitical instability and tensions; impacts of
plant outages and weather conditions and events; and other risks.
For additional discussion of risk factors which may affect our
results, please see the risk factors and other disclosures included
in our most recent Annual Report on Form 10-K, any subsequently
filed Quarterly Reports on Form 10-Q and our other Securities and
Exchange Commission (“SEC”) filings. These and other risks may
cause our actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements included in this news release are made only as of the
date hereof. CVR Energy disclaims any intention or obligation to
update publicly or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
to the extent required by law.
About CVR Energy,
Inc.Headquartered in Sugar Land, Texas, CVR Energy is a
diversified holding company primarily engaged in the renewables,
petroleum refining and marketing business as well as in the
nitrogen fertilizer manufacturing business through its interest in
CVR Partners. CVR Energy subsidiaries serve as the general partner
and own 37 percent of the common units of CVR Partners.
Investors and others should note that CVR Energy
may announce material information using SEC filings, press
releases, public conference calls, webcasts and the Investor
Relations page of its website. CVR Energy may use these channels to
distribute material information about the Company and to
communicate important information about the Company, corporate
initiatives and other matters. Information that CVR Energy posts on
its website could be deemed material; therefore, CVR Energy
encourages investors, the media, its customers, business partners
and others interested in the Company to review the information
posted on its website.
For further information, please contact:
Investor RelationsRichard
RobertsCVR Energy, Inc.(281)
207-3205InvestorRelations@CVREnergy.com
Media RelationsBrandee
StephensCVR Energy, Inc. (281)
207-3516MediaRelations@CVREnergy.com
Non-GAAP Measures
Our management uses certain non-GAAP performance
measures, and reconciliations to those measures, to evaluate
current and past performance and prospects for the future to
supplement our financial information presented in accordance with
accounting principles generally accepted in the United States
(“GAAP”). These non-GAAP financial measures are important factors
in assessing our operating results and profitability and include
the performance and liquidity measures defined below.
As a result of continuing volatile market
conditions and the impacts certain non-cash items may have on the
evaluation of our operations and results, the Company began
disclosing the Adjusted Refining Margin non-GAAP measure, as
defined below, in the second quarter of 2024. We believe the
presentation of this non-GAAP measure is meaningful to compare our
operating results between periods and better aligns with our peer
companies. All prior periods presented have been conformed to the
definition below.
The following are non-GAAP measures we present
for the periods ended June 30, 2024 and 2023:
EBITDA - Consolidated net income (loss) before
(i) interest expense, net, (ii) income tax expense (benefit) and
(iii) depreciation and amortization expense.
Petroleum EBITDA and Nitrogen Fertilizer EBITDA
- Segment net income (loss) before segment (i) interest expense,
net, (ii) income tax expense (benefit), and (iii) depreciation and
amortization.
Refining Margin - The difference between our
Petroleum Segment net sales and cost of materials and other.
Adjusted Refining Margin - Refining Margin
adjusted for certain significant noncash items and items that
management believes are not attributable to or indicative of our
underlying operational results of the period or that may obscure
results and trends we deem useful.
Refining Margin and Adjusted Refining Margin,
per Throughput Barrel - Refining Margin and Adjusted Refining
Margin divided by the total throughput barrels during the period,
which is calculated as total throughput barrels per day times the
number of days in the period.
Direct Operating Expenses per Throughput Barrel
- Direct operating expenses for our Petroleum Segment divided by
total throughput barrels for the period, which is calculated as
total throughput barrels per day times the number of days in the
period.
Adjusted EBITDA, Petroleum Adjusted EBITDA and
Nitrogen Fertilizer Adjusted EBITDA - EBITDA, Petroleum EBITDA and
Nitrogen Fertilizer EBITDA adjusted for certain significant noncash
items and items that management believes are not attributable to or
indicative of our underlying operational results of the period or
that may obscure results and trends we deem useful.
Adjusted Earnings (Loss) per Share - Earnings
(loss) per share adjusted for certain significant non-cash items
and items that management believes are not attributable to or
indicative of our on-going operations or that may obscure our
underlying results and trends.
Free Cash Flow - Net cash provided by (used in)
operating activities less capital expenditures and capitalized
turnaround expenditures.
We present these measures because we believe
they may help investors, analysts, lenders and ratings agencies
analyze our results of operations and liquidity in conjunction with
our U.S. GAAP results, including but not limited to our operating
performance as compared to other publicly traded companies in the
refining and fertilizer industries, without regard to historical
cost basis or financing methods and our ability to incur and
service debt and fund capital expenditures. Non-GAAP measures have
important limitations as analytical tools, because they exclude
some, but not all, items that affect net earnings and operating
income. These measures should not be considered substitutes for
their most directly comparable U.S. GAAP financial measures. See
“Non-GAAP Reconciliations” included herein for reconciliation of
these amounts. Due to rounding, numbers presented within this
section may not add or equal to numbers or totals presented
elsewhere within this document.
Factors Affecting Comparability of Our
Financial Results
Petroleum Segment
Our results of operations for the periods
presented may not be comparable with prior periods or to our
results of operations in the future due to capitalized expenditures
as part of planned turnarounds. Total capitalized expenditures were
$3 million and $11 million during the three months ended June 30,
2024 and 2023, respectively, and $42 million and $51 million during
the six months ended June 30, 2024 and 2023, respectively. The next
planned turnaround is currently scheduled to take place in 2025 at
the Coffeyville refinery.
CVR Energy, Inc. (all
information in this release is unaudited)
Consolidated Statement of Operations Data
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in millions, except per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net sales |
$ |
1,967 |
|
|
$ |
2,236 |
|
|
$ |
3,829 |
|
|
$ |
4,523 |
|
| Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
1,667 |
|
|
|
1,743 |
|
|
|
3,130 |
|
|
|
3,423 |
|
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
173 |
|
|
|
165 |
|
|
|
337 |
|
|
|
334 |
|
|
Depreciation and amortization |
|
70 |
|
|
|
71 |
|
|
|
145 |
|
|
|
137 |
|
|
Cost of sales |
|
1,910 |
|
|
|
1,979 |
|
|
|
3,612 |
|
|
|
3,894 |
|
| Selling, general and
administrative expenses (exclusive of depreciation and
amortization) |
|
28 |
|
|
|
32 |
|
|
|
63 |
|
|
|
71 |
|
| Depreciation and
amortization |
|
2 |
|
|
|
1 |
|
|
|
4 |
|
|
|
4 |
|
| Loss on asset disposal |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Operating income |
|
27 |
|
|
|
224 |
|
|
|
149 |
|
|
|
554 |
|
| Other (expense) income: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(19 |
) |
|
|
(16 |
) |
|
|
(39 |
) |
|
|
(32 |
) |
|
Other income, net |
|
4 |
|
|
|
4 |
|
|
|
8 |
|
|
|
6 |
|
|
Income before income tax expense |
|
12 |
|
|
|
212 |
|
|
|
118 |
|
|
|
528 |
|
| Income tax (benefit)
expense |
|
(26 |
) |
|
|
44 |
|
|
|
(10 |
) |
|
|
101 |
|
|
Net income |
|
38 |
|
|
|
168 |
|
|
|
128 |
|
|
|
427 |
|
| Less: Net income attributable
to noncontrolling interest |
|
17 |
|
|
|
38 |
|
|
|
25 |
|
|
|
102 |
|
|
Net income attributable to CVR Energy
stockholders |
$ |
21 |
|
|
$ |
130 |
|
|
$ |
103 |
|
|
$ |
325 |
|
| |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
$ |
0.21 |
|
|
$ |
1.29 |
|
|
$ |
1.02 |
|
|
$ |
3.23 |
|
|
Dividends declared per share |
$ |
0.50 |
|
|
$ |
0.50 |
|
|
$ |
1.00 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
| Adjusted earnings per
share |
$ |
0.09 |
|
|
$ |
1.64 |
|
|
$ |
0.12 |
|
|
$ |
3.08 |
|
| EBITDA* |
$ |
103 |
|
|
$ |
300 |
|
|
$ |
306 |
|
|
$ |
701 |
|
| Adjusted EBITDA * |
$ |
87 |
|
|
$ |
347 |
|
|
$ |
186 |
|
|
$ |
680 |
|
| |
|
|
|
|
|
|
|
| Weighted-average common shares
outstanding - basic and diluted |
|
100.5 |
|
|
|
100.5 |
|
|
|
100.5 |
|
|
|
100.5 |
|
_________________________________* See “Non-GAAP
Reconciliations” section below.
Selected Balance Sheet Data
| (in millions) |
June 30, 2024 |
|
December 31, 2023 |
|
Cash and cash equivalents |
$ |
586 |
|
$ |
581 |
| Working capital |
|
470 |
|
|
497 |
| Total assets |
|
4,003 |
|
|
4,707 |
| Total debt and finance lease
obligations, including current portion |
|
1,584 |
|
|
2,185 |
| Total liabilities |
|
2,962 |
|
|
3,669 |
| Total CVR stockholders’
equity |
|
849 |
|
|
847 |
Selected Cash Flow Data
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net cash (used in) provided
by: |
|
|
|
|
|
|
|
|
Operating activities |
$ |
81 |
|
|
$ |
367 |
|
|
$ |
258 |
|
|
$ |
614 |
|
|
Investing activities |
|
(74 |
) |
|
|
(96 |
) |
|
|
(129 |
) |
|
|
(130 |
) |
|
Financing activities |
|
(65 |
) |
|
|
(121 |
) |
|
|
(729 |
) |
|
|
(243 |
) |
|
Net (decrease) increase in cash, cash equivalents, and
restricted cash |
$ |
(58 |
) |
|
$ |
150 |
|
|
$ |
(600 |
) |
|
$ |
241 |
|
| |
|
|
|
|
|
|
|
| Free cash flow* |
$ |
7 |
|
|
$ |
271 |
|
|
$ |
128 |
|
|
$ |
484 |
|
_________________________________* See “Non-GAAP
Reconciliations” section below.
Selected Segment Data
| |
Three Months Ended June 30, |
| |
|
2024 |
|
|
2023 |
| (in millions) |
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Net sales |
$ |
1,795 |
|
$ |
133 |
|
$ |
1,967 |
|
$ |
2,000 |
|
$ |
183 |
|
$ |
2,236 |
| Operating income |
|
10 |
|
|
34 |
|
|
27 |
|
|
171 |
|
|
67 |
|
|
224 |
| Net income |
|
18 |
|
|
26 |
|
|
38 |
|
|
194 |
|
|
60 |
|
|
168 |
| EBITDA* |
|
56 |
|
|
54 |
|
|
103 |
|
|
220 |
|
|
87 |
|
|
300 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
$ |
22 |
|
$ |
4 |
|
$ |
27 |
|
$ |
20 |
|
$ |
5 |
|
$ |
27 |
|
Growth capital expenditures |
|
11 |
|
|
1 |
|
|
14 |
|
|
2 |
|
|
1 |
|
|
21 |
|
Total capital expenditures |
$ |
33 |
|
$ |
5 |
|
$ |
41 |
|
$ |
22 |
|
$ |
6 |
|
$ |
48 |
| |
Six Months Ended June 30, |
| |
|
2024 |
|
|
2023 |
| (in millions) |
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Net sales |
$ |
3,517 |
|
$ |
261 |
|
$ |
3,829 |
|
$ |
3,993 |
|
$ |
409 |
|
$ |
4,523 |
| Operating income |
|
128 |
|
|
54 |
|
|
149 |
|
|
408 |
|
|
176 |
|
|
554 |
| Net income |
|
145 |
|
|
39 |
|
|
128 |
|
|
453 |
|
|
162 |
|
|
427 |
| EBITDA* |
|
227 |
|
|
93 |
|
|
306 |
|
|
505 |
|
|
211 |
|
|
701 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
$ |
44 |
|
$ |
9 |
|
$ |
57 |
|
$ |
50 |
|
$ |
9 |
|
$ |
62 |
|
Growth capital expenditures |
|
25 |
|
|
1 |
|
|
35 |
|
|
3 |
|
|
1 |
|
|
35 |
|
Total capital expenditures |
$ |
69 |
|
$ |
10 |
|
$ |
92 |
|
$ |
53 |
|
$ |
10 |
|
$ |
97 |
_________________________________* See “Non-GAAP
Reconciliations” section below.(1) Capital expenditures are
shown exclusive of capitalized turnaround expenditures.
Selected Balance Sheet Data
| |
June 30, 2024 |
|
December 31, 2023 |
| (in millions) |
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Cash and cash equivalents |
$ |
396 |
|
$ |
48 |
|
$ |
586 |
|
$ |
375 |
|
$ |
45 |
|
$ |
581 |
| Total assets |
|
2,944 |
|
|
960 |
|
|
4,003 |
|
|
2,978 |
|
|
975 |
|
|
4,707 |
| Total debt and finance lease
obligations, including current portion (1) |
|
41 |
|
|
548 |
|
|
1,584 |
|
|
44 |
|
|
547 |
|
|
2,185 |
_________________________________(1)
Corporate total debt and finance lease obligations, including
current portion consisted of $995 million and $1,594 million at
June 30, 2024 and December 31, 2023, respectively.
Petroleum Segment
Key Operating Metrics per Total Throughput
Barrel
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in millions) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
| Refining margin * |
$ |
10.94 |
|
$ |
18.21 |
|
$ |
13.68 |
|
$ |
20.68 |
| Adjusted refining margin
* |
|
9.81 |
|
|
20.27 |
|
|
10.15 |
|
|
19.64 |
| Direct operating expenses
* |
|
6.94 |
|
|
5.46 |
|
|
6.34 |
|
|
5.68 |
_________________________________* See “Non-GAAP
Reconciliations” section below.
Refining Throughput and Production Data by
Refinery
| Throughput
Data |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in bpd) |
2024 |
|
2023 |
|
2024 |
|
2023 |
| Coffeyville |
|
|
|
|
|
|
|
|
Gathered crude |
86,851 |
|
73,547 |
|
74,628 |
|
59,527 |
|
Other domestic |
28,625 |
|
41,721 |
|
37,275 |
|
46,572 |
|
Canadian |
9,518 |
|
84 |
|
9,525 |
|
2,091 |
|
Condensate |
5,079 |
|
6,598 |
|
6,390 |
|
7,879 |
|
Other crude oil |
551 |
|
— |
|
275 |
|
— |
|
Other feedstocks and blendstocks |
10,773 |
|
12,124 |
|
11,671 |
|
12,678 |
| Wynnewood |
|
|
|
|
|
|
|
|
Gathered crude |
34,190 |
|
51,142 |
|
38,624 |
|
50,485 |
|
Other domestic |
2,421 |
|
1,002 |
|
1,210 |
|
2,471 |
|
Condensate |
5,965 |
|
11,992 |
|
8,114 |
|
13,950 |
|
Other feedstocks and blendstocks |
2,235 |
|
2,865 |
|
3,287 |
|
3,144 |
|
Total throughput |
186,208 |
|
201,075 |
|
190,999 |
|
198,797 |
| Production
Data |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in bpd) |
2024 |
|
2023 |
|
2024 |
|
2023 |
| Coffeyville |
|
|
|
|
|
|
|
|
Gasoline |
71,515 |
|
|
68,008 |
|
|
72,119 |
|
|
66,258 |
|
|
Distillate |
57,710 |
|
|
57,996 |
|
|
56,858 |
|
|
54,100 |
|
|
Other liquid products |
7,015 |
|
|
3,816 |
|
|
5,784 |
|
|
4,461 |
|
|
Solids |
4,990 |
|
|
3,916 |
|
|
4,985 |
|
|
3,632 |
|
| Wynnewood |
|
|
|
|
|
|
|
|
Gasoline |
25,672 |
|
|
36,017 |
|
|
28,828 |
|
|
37,991 |
|
|
Distillate |
16,053 |
|
|
23,604 |
|
|
17,610 |
|
|
24,424 |
|
|
Other liquid products |
2,349 |
|
|
6,714 |
|
|
3,956 |
|
|
6,499 |
|
|
Solids |
6 |
|
|
10 |
|
|
6 |
|
|
10 |
|
|
Total production |
185,310 |
|
|
200,081 |
|
|
190,146 |
|
|
197,375 |
|
| |
|
|
|
|
|
|
|
| Light product yield (as % of
crude throughput) (1) |
98.7 |
% |
|
99.8 |
% |
|
99.6 |
% |
|
99.9 |
% |
| Liquid volume yield (as % of
total throughput) (2) |
96.8 |
% |
|
97.6 |
% |
|
96.9 |
% |
|
97.5 |
% |
| Distillate yield (as % of
crude throughput) (3) |
42.6 |
% |
|
43.9 |
% |
|
42.3 |
% |
|
42.9 |
% |
_________________________________(1) Total
Gasoline and Distillate divided by total Gathered crude, Other
domestic, Canadian, and Condensate throughput (collectively, “Total
Crude Throughput”).(2) Total Gasoline, Distillate,
and Other liquid products divided by total
throughput.(3) Total Distillate divided by Total
Crude Throughput.
Key Market Indicators
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| West Texas Intermediate (WTI)
NYMEX |
$ |
80.63 |
|
|
$ |
73.51 |
|
|
$ |
78.81 |
|
|
$ |
74.76 |
|
| Crude Oil Differentials to
WTI: |
|
|
|
|
|
|
|
|
Brent |
|
4.40 |
|
|
|
4.22 |
|
|
|
4.60 |
|
|
|
5.18 |
|
|
WCS (heavy sour) |
|
(12.53 |
) |
|
|
(13.36 |
) |
|
|
(14.66 |
) |
|
|
(16.54 |
) |
|
Condensate |
|
(0.66 |
) |
|
|
(0.43 |
) |
|
|
(0.76 |
) |
|
|
(0.15 |
) |
|
Midland Cushing |
|
1.08 |
|
|
|
0.93 |
|
|
|
1.31 |
|
|
|
1.22 |
|
| NYMEX Crack Spreads: |
|
|
|
|
|
|
|
|
Gasoline |
|
27.48 |
|
|
|
35.64 |
|
|
|
25.07 |
|
|
|
32.72 |
|
|
Heating Oil |
|
24.67 |
|
|
|
28.91 |
|
|
|
30.62 |
|
|
|
37.92 |
|
|
NYMEX 2-1-1 Crack Spread |
|
26.07 |
|
|
|
32.27 |
|
|
|
27.85 |
|
|
|
35.32 |
|
| PADD II Group 3 Product
Basis: |
|
|
|
|
|
|
|
|
Gasoline |
|
(10.61 |
) |
|
|
(4.24 |
) |
|
|
(10.33 |
) |
|
|
(4.01 |
) |
|
Ultra-Low Sulfur Diesel |
|
(3.89 |
) |
|
|
3.76 |
|
|
|
(7.04 |
) |
|
|
(0.44 |
) |
| PADD II Group 3 Product Crack
Spread: |
|
|
|
|
|
|
|
|
Gasoline |
|
16.87 |
|
|
|
31.40 |
|
|
|
14.74 |
|
|
|
28.71 |
|
|
Ultra-Low Sulfur Diesel |
|
20.78 |
|
|
|
32.66 |
|
|
|
23.59 |
|
|
|
37.48 |
|
| PADD II Group 3 2-1-1 |
|
18.83 |
|
|
|
32.03 |
|
|
|
19.17 |
|
|
|
33.10 |
|
Nitrogen Fertilizer Segment
Ammonia Utilization Rates
(1)
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (percent of capacity
utilization) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Consolidated |
102 |
% |
|
100 |
% |
|
96 |
% |
|
103 |
% |
_________________________________(1) Reflects our
ammonia utilization rates on a consolidated basis. Utilization is
an important measure used by management to assess operational
output at each of CVR Partners’ facilities. Utilization is
calculated as actual tons produced divided by capacity. We present
our utilization for the three and six months ended June 30, 2024
and 2023 and take into account the impact of our current turnaround
cycles on any specific period. Additionally, we present utilization
solely on ammonia production rather than each nitrogen product as
it provides a comparative baseline against industry peers and
eliminates the disparity of plant configurations for upgrade of
ammonia into other nitrogen products. With our efforts being
primarily focused on ammonia upgrade capabilities, this measure
provides a meaningful view of how well we operate.
Sales and Production Data
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| Consolidated sales volumes
(thousand tons): |
|
|
|
|
|
|
|
|
Ammonia |
|
43 |
|
|
79 |
|
|
113 |
|
|
121 |
|
UAN |
|
330 |
|
|
329 |
|
|
614 |
|
|
688 |
| |
|
|
|
|
|
|
|
| Consolidated product pricing
at gate (dollars per ton):(1) |
|
|
|
|
|
|
|
|
Ammonia |
$ |
520 |
|
$ |
707 |
|
$ |
525 |
|
$ |
770 |
|
UAN |
|
268 |
|
|
316 |
|
|
268 |
|
|
390 |
| |
|
|
|
|
|
|
|
| Consolidated production volume
(thousand tons): |
|
|
|
|
|
|
|
|
Ammonia (gross produced) (2) |
|
221 |
|
|
219 |
|
|
414 |
|
|
442 |
|
Ammonia (net available for sale) (2) |
|
69 |
|
|
70 |
|
|
130 |
|
|
132 |
|
UAN |
|
337 |
|
|
339 |
|
|
643 |
|
|
705 |
| |
|
|
|
|
|
|
|
| Feedstock: |
|
|
|
|
|
|
|
|
Petroleum coke used in production (thousands of tons) |
|
133 |
|
|
124 |
|
|
261 |
|
|
255 |
|
Petroleum coke used in production (dollars per ton) |
$ |
62.96 |
|
$ |
73.91 |
|
$ |
69.21 |
|
$ |
75.62 |
|
Natural gas used in production (thousands of MMBtus) (3) |
|
2,213 |
|
|
2,194 |
|
|
4,361 |
|
|
4,296 |
|
Natural gas used in production (dollars per MMBtu) (3) |
$ |
1.93 |
|
$ |
2.35 |
|
$ |
2.51 |
|
$ |
4.02 |
|
Natural gas in cost of materials and other (thousands of MMBtus)
(3) |
|
1,855 |
|
|
2,403 |
|
|
3,620 |
|
|
3,718 |
|
Natural gas in cost of materials and other (dollars per MMBtu)
(3) |
$ |
1.85 |
|
$ |
4.11 |
|
$ |
2.65 |
|
$ |
5.41 |
_________________________________(1) Product
pricing at gate represents sales less freight revenue divided by
product sales volume in tons and is shown in order to provide a
pricing measure that is comparable across the fertilizer
industry.(2) Gross tons produced for ammonia
represent total ammonia produced, including ammonia produced that
was upgraded into other fertilizer products. Net tons available for
sale represent ammonia available for sale that was not upgraded
into other fertilizer products.(3) The feedstock
natural gas shown above does not include natural gas used for fuel.
The cost of fuel natural gas is included in direct operating
expense.
Key Market Indicators
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Ammonia — Southern plains (dollars per ton) |
$ |
500 |
|
$ |
435 |
|
$ |
520 |
|
$ |
586 |
| Ammonia — Corn belt (dollars
per ton) |
|
547 |
|
|
472 |
|
|
560 |
|
|
682 |
| UAN — Corn belt (dollars per
ton) |
|
275 |
|
|
298 |
|
|
276 |
|
|
335 |
| |
|
|
|
|
|
|
|
| Natural gas NYMEX (dollars per
MMBtu) |
$ |
2.32 |
|
$ |
2.33 |
|
$ |
2.21 |
|
$ |
2.54 |
Q3 2024 Outlook
The table below summarizes our outlook for
certain operational statistics and financial information for our
Nitrogen Fertilizer Segment for the third quarter of 2024. See
“Forward-Looking Statements” above.
| |
Q3 2024 |
| |
Low |
|
High |
| Petroleum |
|
|
|
|
Total throughput (bpd) |
|
200,000 |
|
|
|
215,000 |
|
|
Direct operating expenses (in millions) (1) |
$ |
95 |
|
|
$ |
105 |
|
|
Turnaround (2) |
|
6 |
|
|
|
8 |
|
| |
|
|
|
| Renewables (3) |
|
|
|
|
Total throughput (in millions of gallons) |
|
17 |
|
|
|
22 |
|
|
Direct operating expenses (in millions) (1) |
$ |
8 |
|
|
$ |
11 |
|
| |
|
|
|
| Nitrogen Fertilizer |
|
|
|
|
Ammonia utilization rates |
|
|
|
|
Consolidated |
|
95 |
% |
|
|
100 |
% |
|
Coffeyville Fertilizer Facility |
|
95 |
% |
|
|
100 |
% |
|
East Dubuque Fertilizer Facility |
|
95 |
% |
|
|
100 |
% |
|
Direct operating expenses (in millions) (1) |
$ |
53 |
|
|
$ |
58 |
|
| |
|
|
|
| Capital Expenditures (in
millions) (2) |
|
|
|
|
Petroleum |
$ |
35 |
|
|
$ |
40 |
|
|
Renewables (3) |
|
2 |
|
|
|
4 |
|
|
Nitrogen Fertilizer |
|
10 |
|
|
|
15 |
|
|
Other |
|
3 |
|
|
|
5 |
|
|
Total capital expenditures |
$ |
50 |
|
|
$ |
64 |
|
_________________________________(1) Direct
operating expenses are shown exclusive of depreciation and
amortization, turnaround expenses, and inventory valuation
impacts.(2) Turnaround and capital expenditures
are disclosed on an accrual basis.(3) Renewables
reflects spending on the Wynnewood renewable diesel unit project.
As of June 30, 2024, Renewables does not meet the definition of a
reportable segment as defined under Accounting Standards
Codification 280.
Non-GAAP Reconciliations
Reconciliation of Net Income
to EBITDA and Adjusted EBITDA
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net income |
$ |
38 |
|
|
$ |
168 |
|
$ |
128 |
|
|
$ |
427 |
|
|
Interest expense, net |
|
19 |
|
|
|
16 |
|
|
39 |
|
|
|
32 |
|
|
Income tax (benefit) expense |
|
(26 |
) |
|
|
44 |
|
|
(10 |
) |
|
|
101 |
|
|
Depreciation and amortization |
|
72 |
|
|
|
72 |
|
|
149 |
|
|
|
141 |
|
|
EBITDA |
|
103 |
|
|
|
300 |
|
|
306 |
|
|
|
701 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability, unfavorable (favorable) |
|
— |
|
|
|
2 |
|
|
(91 |
) |
|
|
(54 |
) |
|
Unrealized (gain) loss on derivatives, net |
|
(17 |
) |
|
|
19 |
|
|
7 |
|
|
|
(13 |
) |
|
Inventory valuation impacts, unfavorable (favorable) |
|
1 |
|
|
|
26 |
|
|
(36 |
) |
|
|
46 |
|
|
Adjusted EBITDA |
$ |
87 |
|
|
$ |
347 |
|
$ |
186 |
|
|
$ |
680 |
|
Reconciliation of Basic and Diluted
Earnings per Share to Adjusted
Earnings per Share
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Basic and diluted earnings per share |
$ |
0.21 |
|
|
$ |
1.29 |
|
$ |
1.02 |
|
|
$ |
3.23 |
|
| Adjustments: (1) |
|
|
|
|
|
|
|
|
Revaluation of RFS liability, unfavorable (favorable) |
|
— |
|
|
|
0.01 |
|
|
(0.68 |
) |
|
|
(0.40 |
) |
|
Unrealized (gain) loss on derivatives, net |
|
(0.13 |
) |
|
|
0.14 |
|
|
0.05 |
|
|
|
(0.10 |
) |
|
Inventory valuation impacts, unfavorable (favorable) |
|
0.01 |
|
|
|
0.20 |
|
|
(0.27 |
) |
|
|
0.35 |
|
|
Adjusted earnings per share |
$ |
0.09 |
|
|
$ |
1.64 |
|
$ |
0.12 |
|
|
$ |
3.08 |
|
_________________________________(1) Amounts
are shown after-tax, using the Company’s marginal tax rate, and are
presented on a per share basis using the weighted average shares
outstanding for each period.
Reconciliation of Net Cash Provided By
Operating Activities to Free Cash
Flow
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net cash provided by
operating activities |
$ |
81 |
|
|
$ |
367 |
|
|
$ |
258 |
|
|
$ |
614 |
|
| Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
(43 |
) |
|
|
(55 |
) |
|
|
(90 |
) |
|
|
(100 |
) |
|
Capitalized turnaround expenditures |
|
(32 |
) |
|
|
(42 |
) |
|
|
(44 |
) |
|
|
(50 |
) |
|
Return of equity method investment |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
20 |
|
|
Free cash flow |
$ |
7 |
|
|
$ |
271 |
|
|
$ |
128 |
|
|
$ |
484 |
|
Reconciliation of Petroleum
Segment Net Income to EBITDA and
Adjusted EBITDA
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Petroleum net income |
$ |
18 |
|
|
$ |
194 |
|
|
$ |
145 |
|
|
$ |
453 |
|
|
Interest income, net |
|
(5 |
) |
|
|
(19 |
) |
|
|
(10 |
) |
|
|
(39 |
) |
|
Depreciation and amortization |
|
43 |
|
|
|
45 |
|
|
|
92 |
|
|
|
91 |
|
|
Petroleum EBITDA |
|
56 |
|
|
|
220 |
|
|
|
227 |
|
|
|
505 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability, unfavorable (favorable) |
|
— |
|
|
|
2 |
|
|
|
(91 |
) |
|
|
(54 |
) |
|
Unrealized (gain) loss on derivatives, net |
|
(17 |
) |
|
|
15 |
|
|
|
7 |
|
|
|
(16 |
) |
|
Inventory valuation impacts, (favorable) unfavorable (1) |
|
(2 |
) |
|
|
21 |
|
|
|
(39 |
) |
|
|
33 |
|
|
Petroleum Adjusted EBITDA |
$ |
37 |
|
|
$ |
258 |
|
|
$ |
104 |
|
|
$ |
468 |
|
Reconciliation of Petroleum
Segment Gross Profit to Refining
Margin and Adjusted Refining Margin
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in millions) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net
sales |
$ |
1,795 |
|
|
$ |
2,000 |
|
|
$ |
3,517 |
|
|
$ |
3,993 |
|
| Less: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
(1,610 |
) |
|
|
(1,667 |
) |
|
|
(3,041 |
) |
|
|
(3,249 |
) |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
(118 |
) |
|
|
(100 |
) |
|
|
(221 |
) |
|
|
(204 |
) |
|
Depreciation and amortization |
|
(43 |
) |
|
|
(45 |
) |
|
|
(92 |
) |
|
|
(91 |
) |
|
Gross profit |
|
24 |
|
|
|
188 |
|
|
|
163 |
|
|
|
449 |
|
| Add: |
|
|
|
|
|
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
118 |
|
|
|
100 |
|
|
|
221 |
|
|
|
204 |
|
|
Depreciation and amortization |
|
43 |
|
|
|
45 |
|
|
|
92 |
|
|
|
91 |
|
|
Refining margin |
|
185 |
|
|
|
333 |
|
|
|
476 |
|
|
|
744 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability, unfavorable (favorable) |
|
— |
|
|
|
2 |
|
|
|
(91 |
) |
|
|
(54 |
) |
|
Unrealized (gain) loss on derivatives, net |
|
(17 |
) |
|
|
15 |
|
|
|
7 |
|
|
|
(16 |
) |
|
Inventory valuation impacts, (favorable) unfavorable (1) |
|
(2 |
) |
|
|
21 |
|
|
|
(39 |
) |
|
|
33 |
|
|
Adjusted refining margin |
$ |
166 |
|
|
$ |
371 |
|
|
$ |
353 |
|
|
$ |
707 |
|
_________________________________(1) The Petroleum
Segment’s basis for determining inventory value under GAAP is
First-In, First-Out (“FIFO”). Changes in crude oil prices can cause
fluctuations in the inventory valuation of crude oil, work in
process and finished goods, thereby resulting in a favorable
inventory valuation impact when crude oil prices increase and an
unfavorable inventory valuation impact when crude oil prices
decrease. The inventory valuation impact is calculated based upon
inventory values at the beginning of the accounting period and at
the end of the accounting period. In order to derive the inventory
valuation impact per total throughput barrel, we utilize the total
dollar figures for the inventory valuation impact and divide by the
number of total throughput barrels for the period.
Reconciliation of
Petroleum Segment Total Throughput Barrels
and Metrics per Total Throughput Barrel
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Total throughput barrels per day |
|
186,208 |
|
|
201,075 |
|
|
190,999 |
|
|
198,797 |
| Days in the period |
|
91 |
|
|
91 |
|
|
182 |
|
|
181 |
|
Total throughput barrels |
|
16,944,862 |
|
|
18,297,814 |
|
|
34,761,961 |
|
|
35,982,294 |
| |
|
|
|
|
|
|
|
| (in millions, except per total
throughput barrel) |
|
|
|
|
|
|
|
| Refining margin |
$ |
185 |
|
$ |
333 |
|
$ |
476 |
|
$ |
744 |
| Refining margin per total
throughput barrel |
$ |
10.94 |
|
$ |
18.21 |
|
$ |
13.68 |
|
$ |
20.68 |
| |
|
|
|
|
|
|
|
| Adjusted refining margin |
$ |
166 |
|
$ |
371 |
|
$ |
353 |
|
$ |
707 |
| Adjusted refining margin per
total throughput barrel |
$ |
9.81 |
|
$ |
20.27 |
|
$ |
10.15 |
|
$ |
19.64 |
| |
|
|
|
|
|
|
|
| Direct operating expenses
(exclusive of depreciation and amortization) |
$ |
118 |
|
$ |
100 |
|
$ |
221 |
|
$ |
204 |
| Direct operating expenses per
total throughput barrel |
$ |
6.94 |
|
$ |
5.46 |
|
$ |
6.34 |
|
$ |
5.68 |
Reconciliation of Nitrogen Fertilizer
Segment Net Income to EBITDA and
Adjusted EBITDA
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Nitrogen Fertilizer net income |
$ |
26 |
|
$ |
60 |
|
$ |
39 |
|
$ |
162 |
|
Interest expense, net |
|
8 |
|
|
7 |
|
|
15 |
|
|
14 |
|
Depreciation and amortization |
|
20 |
|
|
20 |
|
|
39 |
|
|
35 |
|
Nitrogen Fertilizer EBITDA and Adjusted
EBITDA |
$ |
54 |
|
$ |
87 |
|
$ |
93 |
|
$ |
211 |
CVR Energy (NYSE:CVI)
過去 株価チャート
から 11 2024 まで 12 2024
CVR Energy (NYSE:CVI)
過去 株価チャート
から 12 2023 まで 12 2024
