SUGAR LAND, Texas, July 28, 2016 /PRNewswire/ -- CVR Energy,
Inc. (NYSE: CVI) today announced second quarter 2016 net income of
$28.4 million, or 33 cents per diluted share, on net sales of
$1,283.2 million, compared to net
income of $101.9 million, or
$1.17 per diluted share, on net sales
of $1,624.2 million for the 2015
second quarter. Second quarter 2016 adjusted EBITDA, a non-GAAP
financial measure, was $64.4 million,
compared to second quarter 2015 adjusted EBITDA of $145.7 million.
For the first six months of 2016, net income was $12.2 million, or 14
cents per diluted share, on net sales of $2,188.7 million, compared to net income of
$156.7 million, or $1.80 per diluted share, on net sales of
$3,013.1 million for the same period
a year earlier. Adjusted EBITDA for the first six months of 2016
was $100.6 million, compared to
adjusted EBITDA of $309.4 million for
the first six months of 2015.
"At CVR Partners, the integration of the East Dubuque fertilizer facility has gone
smoothly since the acquisition of Rentech Nitrogen Partners, L.P.
in April," said Jack Lipinski, CVR
Energy's chief executive officer. "CVR Partners also completed a
$645 million bond offering during the
2016 second quarter, which enabled it to put in place a long-term
capital structure.
"CVR Refining's Coffeyville and
Wynnewood refineries posted solid
operational performance during the second quarter with a combined
crude throughput of 202,536 barrels per day (bpd)," Lipinski said.
"However, the increasing cost of RINs offset the improvements we
saw in refining margins.
"As I mentioned in the CVR Refining second quarter earnings news
release, and I am repeating it here, RINs, which CVR Refining has
to purchase to comply with the Renewable Fuel Standard (RFS), have
become completely disconnected from the cost of blending and
instead have become a source of windfall profits for blenders who
the Environmental Protection Agency (EPA) chose to exempt from the
program," he said. "The RFS program, as currently managed by the
EPA, fails on many fronts. Not only are exempt blenders earning
windfall profits from selling RINs to refiners who cannot blend,
the RFS program allows exempt blenders to retain the profits and
not increase biofuel usage in the U.S.
"RINs have become a black pool allowing exempt parties, and even
speculators, to drive prices to confiscatory levels. We believe the
market may be cornered, the effect of which will be to bring small
merchant refiners to the brink of bankruptcy while unjustly
enriching speculators and exempt blenders," Lipinski continued.
"RINs were intended to be a compliance tool for refiners, not a
device to extract windfall profits from obligated parties. The EPA
needs to open its eyes and recognize that it must change the point
of obligation to close the loophole that allows these exempt
blenders, who control the vast majority of biofuels blending, to
retain the profits from selling RINs without investing in
increasing biofuel use. The windfall serves no regulatory purpose,
but creates a system of winners and losers within the fuels
industry based on their ability to blend.
"Market experts like Goldman Sachs and Credit Suisse are
advising investors to avoid companies with high RIN exposure and to
buy shares in large retail and distribution chains, like Casey's
General Stores, who are benefitting from this structural flaw in
the EPA's rule," he said. "For example, Goldman Sachs predicts that
Casey's will see a 1 percent increase in EBITDA for every
10 cent increase in the price of
RINs. Adding to concerns about the RIN market is the ability of
third parties to buy and sell RINs. At the point that Goldman Sachs
is advising investors to buy shares based on their RIN exposure, it
seems reasonable to ask the question of whether third-party
speculators are buying and selling RINs directly. There are a
discrete number of obligated parties. It would be very easy for
third parties to buy RINs and corner the market, driving up prices
for obligated parties even higher. The EPA has so far refused to
disclose the identity of the entities holding, buying and selling
RINs, but this certainly should be investigated.
"There are pending lawsuits seeking to compel the EPA to fix the
loophole and administrative requests for a rulemaking, both
targeted at stopping the flow of profits to exempt parties at the
expense of RIN-short refiners. We are hopeful that justice and
reason will prevail and that RINs will once again become a
compliance tool for refiners and not a windfall profit device for
exempt parties," Lipinski concluded.
CVR Energy also announced a second quarter 2016 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
Aug. 15, 2016, to stockholders of
record on Aug. 8, 2016.
CVR Energy's second quarter cash dividend brings the cumulative
cash dividends paid or declared for the first six months of 2016 to
$1.00 per share.
Today, CVR Partners announced a 2016 second quarter cash
distribution of 17 cents per common
unit. CVR Refining announced that it will not pay a cash
distribution for the 2016 second
quarter.
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
second quarter 2016 operating income of $90.1 million on net sales of $1,164.4 million, compared to operating income of
$250.8 million on net sales of
$1,547.5 million in the second
quarter of 2015.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $9.56 in the 2016 second quarter, compared to
$17.22 during the same period in
2015. Direct operating expenses, including major scheduled
turnaround expenses, per barrel sold, exclusive of depreciation and
amortization, for the 2016 second quarter were $4.33, compared to $4.43 in the second quarter of 2015.
Second quarter 2016 throughputs of crude oil and all other
feedstocks and blendstocks totaled 210,488 bpd, compared to second
quarter 2015 throughputs of crude oil and all other feedstocks and
blendstocks of 221,095 bpd.
Nitrogen Fertilizers Business
The fertilizer business, which is operated by CVR Partners and
includes the Coffeyville and
East Dubuque fertilizer
facilities, reported second quarter 2016 operating income of
$3.7 million on net sales of
$119.8 million, compared to operating
income of $28.7 million on net sales
of $80.8 million for the second
quarter of 2015.
For the second quarter of 2016, consolidated average realized
gate prices for UAN and ammonia were $199 per ton and $417 per ton, respectively. Average realized gate
prices for UAN and ammonia for the Coffeyville plant were $269 per ton and $546 per ton, respectively, for the same period
in 2015.
CVR Partners' fertilizer facilities produced a combined 171,500
tons of ammonia and purchased an additional 5,000 tons of ammonia
during the second quarter of 2016, of which 45,600 net tons were
available for sale while the rest was upgraded to 296,500 tons of
UAN. In the 2015 second quarter, the Coffeyville plant produced 107,100 tons of
ammonia and purchased an additional 600 tons of ammonia, of which
4,400 net tons were available for sale while the remainder was
upgraded to 253,500 tons of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$159.3 million for CVR Refining and
$76.3 million for CVR Partners, was
$690.6 million at June 30, 2016. Consolidated total debt was
$1,167.2 million at June 30, 2016. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Second Quarter 2016 Earnings Conference Call
CVR Energy previously announced that it will host its second
quarter 2016 Earnings Conference Call for analysts and investors on
Thursday, July 28, at 3 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 Earnings Conference Call will be broadcast live over the
Internet at https://www.webcaster4.com/Webcast/Page/1003/15908. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8291.
For those unable to listen live, the Webcast will be archived
and available for 14 days at
https://www.webcaster4.com/Webcast/Page/1003/15908. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13639905.
Forward-Looking Statements
This 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. You can generally identify forward-looking statements
by our use of forward-looking terminology such as "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. For a 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 SEC filings. These 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 press 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 petroleum refining and
nitrogen fertilizer manufacturing industries through its holdings
in two limited partnerships, CVR Refining, LP and CVR Partners, LP.
CVR Energy subsidiaries serve as the general partner and own 66
percent of the common units of CVR Refining and 34 percent of the
common units of CVR Partners.
For further information, please contact:
Investor Contact:
Jay
Finks
CVR Energy, Inc.
(281) 207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
281-207-3550
MediaRelations@CVREnergy.com
CVR Energy,
Inc.
|
|
Financial and
Operations Data (all information in this release is unaudited
unless noted otherwise).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,283.2
|
|
|
$
|
1,624.2
|
|
|
$
|
2,188.7
|
|
|
$
|
3,013.1
|
|
Cost of product
sold
|
976.9
|
|
|
1,192.2
|
|
|
1,713.7
|
|
|
2,265.8
|
|
Direct operating
expenses
|
138.3
|
|
|
115.4
|
|
|
279.7
|
|
|
226.9
|
|
Flood insurance
recovery
|
—
|
|
|
(27.3)
|
|
|
—
|
|
|
(27.3)
|
|
Selling, general and
administrative expenses
|
26.6
|
|
|
27.2
|
|
|
53.8
|
|
|
52.4
|
|
Depreciation and
amortization
|
50.7
|
|
|
42.5
|
|
|
90.7
|
|
|
84.5
|
|
Operating
income
|
90.7
|
|
|
274.2
|
|
|
50.8
|
|
|
410.8
|
|
Interest expense and
other financing costs
|
(18.5)
|
|
|
(11.9)
|
|
|
(30.6)
|
|
|
(24.6)
|
|
Interest
income
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
|
0.4
|
|
Loss on derivatives,
net
|
(1.9)
|
|
|
(12.6)
|
|
|
(3.1)
|
|
|
(64.0)
|
|
Loss on
extinguishment of debt
|
(5.1)
|
|
|
—
|
|
|
(5.1)
|
|
|
—
|
|
Other income,
net
|
0.1
|
|
|
0.2
|
|
|
0.4
|
|
|
36.3
|
|
Income before income
tax expense
|
65.4
|
|
|
250.2
|
|
|
12.7
|
|
|
358.9
|
|
Income tax expense
(benefit)
|
21.6
|
|
|
58.1
|
|
|
(0.2)
|
|
|
82.1
|
|
Net income
|
43.8
|
|
|
192.1
|
|
|
12.9
|
|
|
276.8
|
|
Less: Net income
attributable to noncontrolling interest
|
15.4
|
|
|
90.2
|
|
|
0.7
|
|
|
120.1
|
|
Net income
attributable to CVR Energy stockholders
|
$
|
28.4
|
|
|
$
|
101.9
|
|
|
$
|
12.2
|
|
|
$
|
156.7
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
$
|
0.33
|
|
|
$
|
1.17
|
|
|
$
|
0.14
|
|
|
$
|
1.80
|
|
Dividends declared
per share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
1.00
|
|
|
$
|
1.00
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
64.4
|
|
|
$
|
145.7
|
|
|
$
|
100.6
|
|
|
$
|
309.4
|
|
Adjusted net
income*
|
$
|
17.1
|
|
|
$
|
72.1
|
|
|
$
|
25.5
|
|
|
$
|
157.0
|
|
Adjusted net income
per diluted share*
|
$
|
0.20
|
|
|
$
|
0.83
|
|
|
$
|
0.29
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic and diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
|
|
|
|
|
|
As of June 30,
2016
|
|
As of December 31,
2015
|
|
|
|
(audited)
|
|
(in
millions)
|
Balance Sheet
Data:
|
|
|
|
Cash and cash
equivalents
|
$
|
690.6
|
|
|
$
|
765.1
|
|
Working capital
(1)
|
898.3
|
|
|
789.0
|
|
Total assets
(1)
|
4,056.4
|
|
|
3,299.4
|
|
Total debt, including
current portion (1)
|
1,167.2
|
|
|
667.1
|
|
Total CVR
stockholders' equity
|
932.7
|
|
|
984.1
|
|
|
|
|
(1) Prior period
amounts have been retrospectively adjusted for Accounting Standard
Update No. 2015-03, which requires that costs incurred to issue
debt be presented in the balance sheet as a direct reduction from
the carrying value of the debt.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
48.3
|
|
|
$
|
198.2
|
|
|
$
|
69.9
|
|
|
$
|
376.4
|
|
Investing
activities
|
(103.4)
|
|
|
(15.3)
|
|
|
(155.1)
|
|
|
(18.7)
|
|
Financing
activities
|
63.9
|
|
|
(97.4)
|
|
|
10.7
|
|
|
(173.7)
|
|
Net cash
flow
|
$
|
8.8
|
|
|
$
|
85.5
|
|
|
$
|
(74.5)
|
|
|
$
|
184.0
|
|
Segment Information
Our operations are organized into two reportable segments,
Petroleum and Nitrogen Fertilizer. Our operations that are not
included in the Petroleum and Nitrogen Fertilizer segments are
included in the Corporate and Other segment (along with elimination
of intersegment transactions). The Petroleum segment is operated by
CVR Refining, LP ("CVR Refining"), in which we own a majority
interest as well as the general partner. The Petroleum segment
includes the operations of the Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with the
crude oil gathering and pipeline systems. Detailed operating
results for the Petroleum segment for the quarter and six months
ended June 30, 2016 are included in CVR Refining's press
release dated July 28, 2016. The Nitrogen Fertilizer segment
is operated by CVR Partners, LP, ("CVR Partners") in which we owned
approximately 34% of the common units as of June 30, 2016 and
serve as the general partner. On April 1,
2016, CVR Partners completed the previously announced
transactions (the "East Dubuque Merger") contemplated by the
Agreement and Plan of Merger, dated as of August 9, 2015, whereby CVR Partners acquired CVR
Nitrogen, LP (formerly known as East Dubuque Nitrogen Partners,
L.P. and also formerly known as Rentech Nitrogen Partners L.P.) and
CVR Nitrogen GP, LLC (formerly known as East Dubuque Nitrogen GP,
LLC and also formerly known as Rentech Nitrogen GP, LLC). The
Nitrogen Fertilizer segment consists of a nitrogen fertilizer
manufacturing facility located in Coffeyville, Kansas, and as of April 1, 2016, a nitrogen fertilizer
manufacturing facility located in East
Dubuque, Illinois. Detailed operating results for the
Nitrogen Fertilizer segment for the quarter and six months ended
June 30, 2016 are included in CVR Partners' press release
dated July 28, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
Three Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,164.4
|
|
|
$
|
119.8
|
|
|
$
|
(1.0)
|
|
|
$
|
1,283.2
|
|
Cost of product
sold
|
941.9
|
|
|
36.0
|
|
|
(1.0)
|
|
|
976.9
|
|
Direct operating
expenses (1)
|
81.9
|
|
|
47.6
|
|
|
0.1
|
|
|
129.6
|
|
Major scheduled
turnaround expenses
|
2.1
|
|
|
6.6
|
|
|
—
|
|
|
8.7
|
|
Selling, general and
administrative
|
16.8
|
|
|
8.3
|
|
|
1.5
|
|
|
26.6
|
|
Depreciation and
amortization
|
31.6
|
|
|
17.6
|
|
|
1.5
|
|
|
50.7
|
|
Operating income
(loss)
|
$
|
90.1
|
|
|
$
|
3.7
|
|
|
$
|
(3.1)
|
|
|
$
|
90.7
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
24.0
|
|
|
$
|
10.1
|
|
|
$
|
1.2
|
|
|
$
|
35.3
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2016
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,998.4
|
|
|
$
|
192.9
|
|
|
$
|
(2.6)
|
|
|
$
|
2,188.7
|
|
Cost of product
sold
|
1,664.2
|
|
|
52.4
|
|
|
(2.9)
|
|
|
1,713.7
|
|
Direct operating
expenses (1)
|
170.2
|
|
|
71.3
|
|
|
0.1
|
|
|
241.6
|
|
Major scheduled
turnaround expenses
|
31.5
|
|
|
6.6
|
|
|
—
|
|
|
38.1
|
|
Selling, general and
administrative
|
35.3
|
|
|
14.7
|
|
|
3.8
|
|
|
53.8
|
|
Depreciation and
amortization
|
63.1
|
|
|
24.5
|
|
|
3.1
|
|
|
90.7
|
|
Operating income
(loss)
|
$
|
34.1
|
|
|
$
|
23.4
|
|
|
$
|
(6.7)
|
|
|
$
|
50.8
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
68.0
|
|
|
$
|
11.9
|
|
|
$
|
2.9
|
|
|
$
|
82.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,547.5
|
|
|
$
|
80.8
|
|
|
$
|
(4.1)
|
|
|
$
|
1,624.2
|
|
Cost of product
sold
|
1,180.9
|
|
|
15.4
|
|
|
(4.1)
|
|
|
1,192.2
|
|
Direct operating
expenses (1)
|
88.6
|
|
|
24.7
|
|
|
—
|
|
|
113.3
|
|
Major scheduled
turnaround expenses
|
1.7
|
|
|
0.4
|
|
|
—
|
|
|
2.1
|
|
Flood insurance
recovery
|
(27.3)
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
Selling, general and
administrative
|
18.6
|
|
|
4.6
|
|
|
4.0
|
|
|
27.2
|
|
Depreciation and
amortization
|
34.2
|
|
|
7.0
|
|
|
1.3
|
|
|
42.5
|
|
Operating income
(loss)
|
$
|
250.8
|
|
|
$
|
28.7
|
|
|
$
|
(5.3)
|
|
|
$
|
274.2
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
36.4
|
|
|
$
|
3.4
|
|
|
$
|
1.4
|
|
|
$
|
41.2
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,852.0
|
|
|
$
|
173.9
|
|
|
$
|
(12.8)
|
|
|
$
|
3,013.1
|
|
Cost of product
sold
|
2,237.1
|
|
|
41.2
|
|
|
(12.5)
|
|
|
2,265.8
|
|
Direct operating
expenses (1)
|
175.6
|
|
|
49.2
|
|
|
—
|
|
|
224.8
|
|
Major scheduled
turnaround expenses
|
1.7
|
|
|
0.4
|
|
|
—
|
|
|
2.1
|
|
Flood insurance
recovery
|
(27.3)
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
Selling, general and
administrative
|
36.7
|
|
|
9.1
|
|
|
6.6
|
|
|
52.4
|
|
Depreciation and
amortization
|
68.2
|
|
|
13.8
|
|
|
2.5
|
|
|
84.5
|
|
Operating income
(loss)
|
$
|
360.0
|
|
|
$
|
60.2
|
|
|
$
|
(9.4)
|
|
|
$
|
410.8
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
78.1
|
|
|
$
|
6.0
|
|
|
$
|
2.6
|
|
|
$
|
86.7
|
|
|
|
|
|
(1)
Excluding turnaround expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
June 30,
2016
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
159.3
|
|
|
$
|
76.3
|
|
|
$
|
455.0
|
|
|
$
|
690.6
|
|
Total
assets
|
2,192.7
|
|
|
1,352.6
|
|
|
511.1
|
|
|
4,056.4
|
|
Total debt, including
current portion
|
573.4
|
|
|
625.3
|
|
|
(31.5)
|
|
|
1,167.2
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
187.3
|
|
|
$
|
50.0
|
|
|
$
|
527.8
|
|
|
$
|
765.1
|
|
Total assets
(1)
|
2,189.0
|
|
|
536.3
|
|
|
574.1
|
|
|
3,299.4
|
|
Total debt, including
current portion (1)
|
573.8
|
|
|
124.8
|
|
|
(31.5)
|
|
|
667.1
|
|
|
|
|
(1) Prior period
amounts have been retrospectively adjusted for Accounting Standard
Update No. 2015-03, which requires that costs incurred to issue
debt be presented in the balance sheet as a direct reduction from
the carrying value of the debt.
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operated by CVR Refining, of which
we own a majority interest and serve as the general partner, and
the Coffeyville and Wynnewood refineries. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Petroleum segment for the quarter and six
months ended June 30, 2016 are included in CVR Refining's
press release dated July 28, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,164.4
|
|
|
$
|
1,547.5
|
|
|
$
|
1,998.4
|
|
|
$
|
2,852.0
|
|
Cost of product
sold
|
941.9
|
|
|
1,180.9
|
|
|
1,664.2
|
|
|
2,237.1
|
|
Direct operating
expenses
|
81.9
|
|
|
88.6
|
|
|
170.2
|
|
|
175.6
|
|
Major scheduled
turnaround expenses
|
2.1
|
|
|
1.7
|
|
|
31.5
|
|
|
1.7
|
|
Flood insurance
recovery
|
—
|
|
|
(27.3)
|
|
|
—
|
|
|
(27.3)
|
|
Selling, general and
administrative expenses
|
16.8
|
|
|
18.6
|
|
|
35.3
|
|
|
36.7
|
|
Depreciation and
amortization
|
31.6
|
|
|
34.2
|
|
|
63.1
|
|
|
68.2
|
|
Operating
income
|
90.1
|
|
|
250.8
|
|
|
34.1
|
|
|
360.0
|
|
Interest expense and
other financing costs
|
(10.1)
|
|
|
(10.4)
|
|
|
(20.9)
|
|
|
(21.7)
|
|
Interest
income
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.2
|
|
Loss on derivatives,
net
|
(1.9)
|
|
|
(12.6)
|
|
|
(3.1)
|
|
|
(64.0)
|
|
Other income
(expense), net
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
—
|
|
Income before income
tax expense
|
78.1
|
|
|
227.8
|
|
|
10.1
|
|
|
274.5
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
$
|
78.1
|
|
|
$
|
227.8
|
|
|
$
|
10.1
|
|
|
$
|
274.5
|
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
222.5
|
|
|
$
|
366.6
|
|
|
$
|
334.2
|
|
|
$
|
614.9
|
|
Gross
profit*
|
$
|
106.9
|
|
|
$
|
269.4
|
|
|
$
|
69.4
|
|
|
$
|
396.7
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
176.3
|
|
|
$
|
330.2
|
|
|
$
|
296.8
|
|
|
$
|
603.0
|
|
Adjusted Petroleum
EBITDA*
|
$
|
84.7
|
|
|
$
|
194.3
|
|
|
$
|
119.8
|
|
|
$
|
356.0
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(dollars per
barrel)
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
12.07
|
|
|
$
|
19.12
|
|
|
$
|
9.50
|
|
|
$
|
16.47
|
|
FIFO impact,
favorable
|
(2.51)
|
|
|
(1.90)
|
|
|
(1.06)
|
|
|
(0.32)
|
|
Refining margin
adjusted for FIFO impact*
|
9.56
|
|
|
17.22
|
|
|
8.44
|
|
|
16.15
|
|
Gross
profit*
|
5.80
|
|
|
14.05
|
|
|
1.97
|
|
|
10.63
|
|
Gross profit
excluding flood insurance recovery*
|
5.80
|
|
|
12.63
|
|
|
1.97
|
|
|
9.90
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.56
|
|
|
4.71
|
|
|
5.73
|
|
|
4.75
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.45
|
|
|
4.62
|
|
|
4.84
|
|
|
4.71
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
4.33
|
|
|
4.43
|
|
|
5.34
|
|
|
4.43
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
4.22
|
|
|
$
|
4.35
|
|
|
$
|
4.50
|
|
|
$
|
4.39
|
|
Barrels sold (barrels
per day)
|
213,368
|
|
|
224,031
|
|
|
207,669
|
|
|
220,876
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Petroleum Segment
Summary Refining Throughput and Production Data
(bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
176,674
|
|
|
83.9
|
%
|
|
192,691
|
|
|
87.1
|
%
|
|
173,700
|
|
|
85.5
|
%
|
|
184,082
|
|
|
84.4
|
%
|
Medium
|
3,429
|
|
|
1.6
|
%
|
|
1,082
|
|
|
0.5
|
%
|
|
2,471
|
|
|
1.2
|
%
|
|
3,841
|
|
|
1.8
|
%
|
Heavy sour
|
22,433
|
|
|
10.7
|
%
|
|
16,954
|
|
|
7.7
|
%
|
|
17,174
|
|
|
8.5
|
%
|
|
18,298
|
|
|
8.4
|
%
|
Total crude oil
throughput
|
202,536
|
|
|
96.2
|
%
|
|
210,727
|
|
|
95.3
|
%
|
|
193,345
|
|
|
95.2
|
%
|
|
206,221
|
|
|
94.6
|
%
|
All other feedstocks
and blendstocks
|
7,952
|
|
|
3.8
|
%
|
|
10,368
|
|
|
4.7
|
%
|
|
9,827
|
|
|
4.8
|
%
|
|
11,855
|
|
|
5.4
|
%
|
Total
throughput
|
210,488
|
|
|
100.0
|
%
|
|
221,095
|
|
|
100.0
|
%
|
|
203,172
|
|
|
100.0
|
%
|
|
218,076
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
108,330
|
|
|
51.3
|
%
|
|
107,439
|
|
|
48.3
|
%
|
|
107,105
|
|
|
52.7
|
%
|
|
108,263
|
|
|
49.3
|
%
|
Distillate
|
86,622
|
|
|
41.0
|
%
|
|
95,881
|
|
|
43.1
|
%
|
|
82,309
|
|
|
40.5
|
%
|
|
92,675
|
|
|
42.1
|
%
|
Other (excluding
internally produced fuel)
|
16,280
|
|
|
7.7
|
%
|
|
19,160
|
|
|
8.6
|
%
|
|
13,900
|
|
|
6.8
|
%
|
|
19,011
|
|
|
8.6
|
%
|
Total refining
production (excluding internally produced fuel)
|
211,232
|
|
|
100.0
|
%
|
|
222,480
|
|
|
100.0
|
%
|
|
203,314
|
|
|
100.0
|
%
|
|
219,949
|
|
|
100.0
|
%
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.44
|
|
|
|
|
$
|
1.87
|
|
|
|
|
$
|
1.24
|
|
|
|
|
$
|
1.67
|
|
|
|
Distillate
|
1.37
|
|
|
|
|
1.81
|
|
|
|
|
1.22
|
|
|
|
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
45.64
|
|
|
$
|
57.95
|
|
|
$
|
39.78
|
|
|
$
|
53.34
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
WTI less WTS
(light/medium sour)
|
0.83
|
|
|
(0.71)
|
|
|
0.49
|
|
|
0.12
|
|
WTI less WCS (heavy
sour)
|
12.92
|
|
|
9.57
|
|
|
13.26
|
|
|
11.60
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
Gasoline
|
19.13
|
|
|
26.02
|
|
|
17.53
|
|
|
22.34
|
|
Heating
Oil
|
12.82
|
|
|
21.69
|
|
|
12.37
|
|
|
24.33
|
|
NYMEX 2-1-1 Crack
Spread
|
15.98
|
|
|
23.85
|
|
|
14.95
|
|
|
23.33
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
Gasoline
|
(5.49)
|
|
|
(6.19)
|
|
|
(5.68)
|
|
|
(4.87)
|
|
Ultra Low Sulfur
Diesel
|
(1.18)
|
|
|
(3.69)
|
|
|
(1.10)
|
|
|
(4.10)
|
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
|
|
|
|
Gasoline
|
13.64
|
|
|
19.83
|
|
|
11.85
|
|
|
17.47
|
|
Ultra Low Sulfur
Diesel
|
11.63
|
|
|
18.00
|
|
|
11.27
|
|
|
20.23
|
|
PADD II Group 3
2-1-1
|
12.64
|
|
|
18.91
|
|
|
11.56
|
|
|
18.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except operating statistics)
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
778.0
|
|
|
$
|
1,006.3
|
|
|
$
|
1,306.0
|
|
|
$
|
1,858.0
|
|
Cost of product
sold
|
630.7
|
|
|
764.8
|
|
|
1,093.4
|
|
|
1,465.7
|
|
Refining
margin*
|
147.3
|
|
|
241.5
|
|
|
212.6
|
|
|
392.3
|
|
Direct operating
expenses
|
46.1
|
|
|
51.2
|
|
|
93.8
|
|
|
101.5
|
|
Major scheduled
turnaround expenses
|
2.1
|
|
|
1.7
|
|
|
31.5
|
|
|
1.7
|
|
Flood insurance
recovery
|
—
|
|
|
(27.3)
|
|
|
—
|
|
|
(27.3)
|
|
Depreciation and
amortization
|
16.8
|
|
|
19.5
|
|
|
33.6
|
|
|
38.9
|
|
Gross
profit*
|
$
|
82.3
|
|
|
$
|
196.4
|
|
|
$
|
53.7
|
|
|
$
|
277.5
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
117.1
|
|
|
$
|
212.4
|
|
|
$
|
186.2
|
|
|
$
|
381.7
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
12.71
|
|
|
$
|
20.27
|
|
|
$
|
9.99
|
|
|
$
|
16.82
|
|
FIFO impact,
favorable
|
(2.62)
|
|
|
(2.44)
|
|
|
(1.24)
|
|
|
(0.46)
|
|
Refining margin
adjusted for FIFO impact*
|
10.09
|
|
|
17.83
|
|
|
8.75
|
|
|
16.36
|
|
Gross
profit*
|
7.10
|
|
|
16.49
|
|
|
2.53
|
|
|
11.89
|
|
Gross profit
excluding flood insurance recovery*
|
7.10
|
|
|
14.20
|
|
|
2.53
|
|
|
10.72
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.16
|
|
|
4.43
|
|
|
5.89
|
|
|
4.43
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
3.98
|
|
|
4.29
|
|
|
4.41
|
|
|
4.35
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
3.84
|
|
|
4.03
|
|
|
5.28
|
|
|
4.00
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
3.67
|
|
|
$
|
3.90
|
|
|
$
|
3.95
|
|
|
$
|
3.94
|
|
Barrels sold (barrels
per day)
|
138,021
|
|
|
144,183
|
|
|
130,429
|
|
|
142,587
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
101,548
|
|
|
76.2
|
%
|
|
112,867
|
|
|
81.2
|
%
|
|
97,242
|
|
|
78.1
|
%
|
|
106,734
|
|
|
77.3
|
%
|
Medium
|
3,429
|
|
|
2.6
|
%
|
|
1,082
|
|
|
0.8
|
%
|
|
2,471
|
|
|
2.0
|
%
|
|
3,841
|
|
|
2.8
|
%
|
Heavy sour
|
22,433
|
|
|
16.8
|
%
|
|
16,954
|
|
|
12.2
|
%
|
|
17,174
|
|
|
13.8
|
%
|
|
18,298
|
|
|
13.3
|
%
|
Total crude oil
throughput
|
127,410
|
|
|
95.6
|
%
|
|
130,903
|
|
|
94.2
|
%
|
|
116,887
|
|
|
93.9
|
%
|
|
128,873
|
|
|
93.4
|
%
|
All other feedstocks
and blendstocks
|
5,844
|
|
|
4.4
|
%
|
|
8,122
|
|
|
5.8
|
%
|
|
7,594
|
|
|
6.1
|
%
|
|
9,168
|
|
|
6.6
|
%
|
Total
throughput
|
133,254
|
|
|
100.0
|
%
|
|
139,025
|
|
|
100.0
|
%
|
|
124,481
|
|
|
100.0
|
%
|
|
138,041
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
67,819
|
|
|
49.9
|
%
|
|
66,374
|
|
|
46.6
|
%
|
|
65,927
|
|
|
52.2
|
%
|
|
67,110
|
|
|
47.5
|
%
|
Distillate
|
57,549
|
|
|
42.4
|
%
|
|
62,257
|
|
|
43.7
|
%
|
|
52,348
|
|
|
41.4
|
%
|
|
60,843
|
|
|
43.0
|
%
|
Other (excluding
internally produced fuel)
|
10,491
|
|
|
7.7
|
%
|
|
13,722
|
|
|
9.7
|
%
|
|
8,130
|
|
|
6.4
|
%
|
|
13,477
|
|
|
9.5
|
%
|
Total refining
production (excluding internally produced fuel)
|
135,859
|
|
|
100.0
|
%
|
|
142,353
|
|
|
100.0
|
%
|
|
126,405
|
|
|
100.0
|
%
|
|
141,430
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except operating statistics)
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
385.3
|
|
|
$
|
540.1
|
|
|
$
|
690.1
|
|
|
$
|
991.8
|
|
Cost of product
sold
|
311.3
|
|
|
415.9
|
|
|
570.7
|
|
|
771.4
|
|
Refining
margin*
|
74.0
|
|
|
124.2
|
|
|
119.4
|
|
|
220.4
|
|
Direct operating
expenses
|
35.8
|
|
|
37.5
|
|
|
76.4
|
|
|
74.1
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
12.6
|
|
|
12.5
|
|
|
25.3
|
|
|
25.1
|
|
Gross
profit*
|
$
|
25.6
|
|
|
$
|
74.2
|
|
|
$
|
17.7
|
|
|
$
|
121.2
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
58.1
|
|
|
$
|
116.9
|
|
|
$
|
108.4
|
|
|
$
|
219.1
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
10.83
|
|
|
$
|
17.10
|
|
|
$
|
8.58
|
|
|
$
|
15.74
|
|
FIFO impact,
favorable
|
(2.32)
|
|
|
(1.01)
|
|
|
(0.79)
|
|
|
(0.09)
|
|
Refining margin
adjusted for FIFO impact*
|
8.51
|
|
|
16.09
|
|
|
7.79
|
|
|
15.65
|
|
Gross
profit*
|
3.74
|
|
|
10.21
|
|
|
1.27
|
|
|
8.66
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
5.24
|
|
|
5.16
|
|
|
5.49
|
|
|
5.29
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
5.24
|
|
|
5.16
|
|
|
5.49
|
|
|
5.29
|
|
Direct operating
expenses and major scheduled turnaround expenses
per barrel sold
|
5.22
|
|
|
5.16
|
|
|
$
|
5.44
|
|
|
$
|
5.23
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
5.22
|
|
|
$
|
5.16
|
|
|
$
|
5.44
|
|
|
$
|
5.23
|
|
Barrels sold (barrels
per day)
|
75,347
|
|
|
79,848
|
|
|
77,239
|
|
|
78,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
75,126
|
|
|
97.3
|
%
|
|
79,824
|
|
|
97.3
|
%
|
|
76,458
|
|
|
97.2
|
%
|
|
77,348
|
|
|
96.6
|
%
|
Medium
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Total crude oil
throughput
|
75,126
|
|
|
97.3
|
%
|
|
79,824
|
|
|
97.3
|
%
|
|
76,458
|
|
|
97.2
|
%
|
|
77,348
|
|
|
96.6
|
%
|
All other feedstocks
and blendstocks
|
2,108
|
|
|
2.7
|
%
|
|
2,246
|
|
|
2.7
|
%
|
|
2,233
|
|
|
2.8
|
%
|
|
2,687
|
|
|
3.4
|
%
|
Total
throughput
|
77,234
|
|
|
100.0
|
%
|
|
82,070
|
|
|
100.0
|
%
|
|
78,691
|
|
|
100.0
|
%
|
|
80,035
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
40,511
|
|
|
53.7
|
%
|
|
41,065
|
|
|
51.2
|
%
|
|
41,178
|
|
|
53.5
|
%
|
|
41,153
|
|
|
52.4
|
%
|
Distillate
|
29,073
|
|
|
38.6
|
%
|
|
33,624
|
|
|
42.0
|
%
|
|
29,961
|
|
|
39.0
|
%
|
|
31,832
|
|
|
40.5
|
%
|
Other (excluding
internally produced fuel)
|
5,789
|
|
|
7.7
|
%
|
|
5,438
|
|
|
6.8
|
%
|
|
5,770
|
|
|
7.5
|
%
|
|
5,534
|
|
|
7.1
|
%
|
Total refining
production (excluding internally produced fuel)
|
75,373
|
|
|
100.0
|
%
|
|
80,127
|
|
|
100.0
|
%
|
|
76,909
|
|
|
100.0
|
%
|
|
78,519
|
|
|
100.0
|
%
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we owned
approximately 34% of the common units as of June 30, 2016 and
serve as the general partner. The financial and operational data
for the three and six months ended June 30,
2016 include the results of the nitrogen fertilizer
manufacturing facility located in East
Dubuque, Illinois (the "East Dubuque Facility") beginning on
April 1, 2016, the date of the
closing of the acquisition. Reconciliations of certain non-GAAP
financial measures are provided under "Use of Non-GAAP Financial
Measures" below. Additional discussion of operating results for the
Nitrogen Fertilizer segment for the quarter and six months ended
June 30, 2016 are included in CVR Partners' press release
dated July 28, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
119.8
|
|
|
$
|
80.8
|
|
|
$
|
192.9
|
|
|
$
|
173.9
|
|
Cost of product
sold
|
36.0
|
|
|
15.4
|
|
|
52.4
|
|
|
41.2
|
|
Direct operating
expenses
|
47.6
|
|
|
24.7
|
|
|
71.3
|
|
|
49.2
|
|
Major scheduled
turnaround expenses
|
6.6
|
|
|
0.4
|
|
|
6.6
|
|
|
0.4
|
|
Selling, general and
administrative expenses
|
8.3
|
|
|
4.6
|
|
|
14.7
|
|
|
9.1
|
|
Depreciation and
amortization
|
17.6
|
|
|
7.0
|
|
|
24.5
|
|
|
13.8
|
|
Operating
income
|
3.7
|
|
|
28.7
|
|
|
23.4
|
|
|
60.2
|
|
Interest expense and
other financing costs
|
(15.5)
|
|
|
(1.7)
|
|
|
(17.2)
|
|
|
(3.4)
|
|
Loss on
extinguishment of debt
|
(5.1)
|
|
|
—
|
|
|
(5.1)
|
|
|
—
|
|
Income (loss) before
income tax expense
|
(16.9)
|
|
|
27.0
|
|
|
1.1
|
|
|
56.8
|
|
Income tax expense
(benefit)
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Net income
(loss)
|
$
|
(17.0)
|
|
|
$
|
27.0
|
|
|
$
|
1.0
|
|
|
$
|
56.8
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
29.1
|
|
|
$
|
36.1
|
|
|
$
|
57.0
|
|
|
$
|
74.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated sales
(thousand tons):
|
|
|
|
|
|
|
|
Ammonia
|
73.6
|
|
|
6.3
|
|
|
98.0
|
|
|
19.1
|
|
UAN
|
339.4
|
|
|
249.8
|
|
|
606.4
|
|
|
524.3
|
|
|
|
|
|
|
|
|
|
Consolidated product
pricing at gate (dollars per ton) (1):
|
|
|
|
|
|
|
|
Ammonia
|
$
|
417
|
|
|
$
|
546
|
|
|
$
|
405
|
|
|
$
|
551
|
|
UAN
|
$
|
199
|
|
|
$
|
269
|
|
|
$
|
202
|
|
|
$
|
265
|
|
|
|
|
|
|
|
|
|
Consolidated
production volume (thousand tons):
|
|
|
|
|
|
|
|
Ammonia (gross
produced) (2)
|
171.5
|
|
|
107.1
|
|
|
285.1
|
|
|
203.0
|
|
Ammonia (net available
for sale) (2)(3)
|
45.6
|
|
|
4.4
|
|
|
60.7
|
|
|
19.1
|
|
UAN
|
296.5
|
|
|
253.5
|
|
|
544.7
|
|
|
505.6
|
|
|
|
|
|
|
|
|
|
Feedstock:
|
|
|
|
|
|
|
|
Petroleum coke used in
production (thousand tons)
|
130.6
|
|
|
128.2
|
|
|
257.5
|
|
|
253.1
|
|
Petroleum coke used in
production (dollars per ton)
|
$
|
12
|
|
|
$
|
25
|
|
|
$
|
15
|
|
|
$
|
27
|
|
Natural gas used in
production (MMBtu) (4)
|
1,396.1
|
|
|
—
|
|
|
1,396.1
|
|
|
—
|
|
Natural gas used in
production (dollars per MMBtu) (4)
|
$
|
2.41
|
|
|
$
|
—
|
|
|
$
|
2.41
|
|
|
$
|
—
|
|
Natural gas in cost of
product sold (MMBtu) (4)
|
1,063.0
|
|
|
—
|
|
|
1,063.0
|
|
|
—
|
|
Natural gas in cost of
product sold (dollars per MMBtu) (4)
|
$
|
2.33
|
|
|
$
|
—
|
|
|
$
|
2.33
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Coffeyville Facility
on-stream factor (5):
|
|
|
|
|
|
|
|
Gasification
|
98.0
|
%
|
|
100.0
|
%
|
|
97.8
|
%
|
|
99.7
|
%
|
Ammonia
|
96.6
|
%
|
|
99.3
|
%
|
|
96.9
|
%
|
|
96.9
|
%
|
UAN
|
93.7
|
%
|
|
96.6
|
%
|
|
92.5
|
%
|
|
97.2
|
%
|
|
|
|
|
|
|
|
|
East Dubuque Facility
on-stream factors (5):
|
|
|
|
|
|
|
|
Ammonia
|
68.6
|
%
|
|
—
|
%
|
|
68.6
|
%
|
|
—
|
%
|
UAN
|
69.1
|
%
|
|
—
|
%
|
|
69.1
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
419
|
|
|
$
|
546
|
|
|
$
|
397
|
|
|
$
|
550
|
|
Ammonia — Corn belt
(dollars per ton)
|
$
|
489
|
|
|
$
|
601
|
|
|
$
|
465
|
|
|
$
|
604
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
239
|
|
|
$
|
305
|
|
|
$
|
234
|
|
|
$
|
309
|
|
Natural gas NYMEX
(dollars per MMBtu)
|
$
|
2.25
|
|
|
$
|
2.74
|
|
|
$
|
2.12
|
|
|
$
|
2.77
|
|
|
|
|
|
Cost of product sold,
direct operating expenses and selling, general and administrative
expenses are all reflected exclusive of depreciation and
amortization.
|
|
* See Use of
Non-GAAP Financial Measures below.
|
|
|
|
|
(1)
|
Product pricing at
gate per ton represents net 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 the ammonia available for sale that
was not upgraded into other fertilizer products.
|
|
|
(3)
|
In addition to the
produced ammonia, the Nitrogen Fertilizer segment acquired
approximately 5,000 tons and 600 tons of ammonia during the three
months ended June 30, 2016 and 2015, respectively. The
Nitrogen Fertilizer segment acquired approximately 8,000 tons and
21,800 tons of ammonia during the six months ended June 30,
2016 and 2015, respectively.
|
|
|
(4)
|
The cost per MMBtu
excludes derivative activity, when applicable. The impact of
natural gas derivative activity during the three and six months
ended June 30, 2016 and 2015 was not material.
|
|
|
(5)
|
On-stream factor is
the total number of hours operated divided by the total number of
hours in the reporting period and is a measure of operating
efficiency.
|
Excluding the impact of the full facility turnaround at the East
Dubuque Facility, the on-stream factors for the East Dubuque
Facility would have been 100.0% for ammonia and 99.6% for UAN for
the three months ended June 30, 2016.
Use of Non-GAAP Financial Measures
To supplement the Company's actual results in accordance with
GAAP for the applicable periods, the Company also uses the non-GAAP
financial measures noted above, which are reconciled to our
GAAP-based results below. These non-GAAP financial measures should
not be considered an alternative for GAAP results. The adjustments
are provided to enhance an overall understanding of the Company's
financial performance for the applicable periods and are indicators
management believes are relevant and useful for planning and
forecasting future periods.
Adjusted net income is not a recognized term under GAAP and
should not be substituted for net income as a measure of our
performance but rather should be utilized as a supplemental measure
of financial performance in evaluating our business. Management
believes that adjusted net income provides relevant and useful
information that enables external users of our financial
statements, such as industry analysts, investors, lenders and
rating agencies, to better understand and evaluate our ongoing
operating results and allow for greater transparency in the review
of our overall financial, operational and economic performance.
Adjusted net income per diluted share represents adjusted net
income divided by weighted-average diluted shares outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
Reconciliation of
Net Income to Adjusted Net Income:
|
|
|
|
|
|
|
|
Income before income
tax expense
|
$
|
65.4
|
|
|
$
|
250.2
|
|
|
$
|
12.7
|
|
|
$
|
358.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
FIFO impact,
favorable
|
(46.2)
|
|
|
(36.4)
|
|
|
(37.4)
|
|
|
(11.9)
|
|
Share-based
compensation (1)
|
—
|
|
|
1.9
|
|
|
—
|
|
|
5.9
|
|
Major scheduled
turnaround expenses
|
8.7
|
|
|
2.1
|
|
|
38.1
|
|
|
2.1
|
|
Loss on derivatives,
net
|
1.9
|
|
|
12.6
|
|
|
3.1
|
|
|
64.0
|
|
Current period
settlement on derivative contracts (2)
|
7.1
|
|
|
(28.5)
|
|
|
28.5
|
|
|
(34.8)
|
|
Flood insurance
recovery (3)
|
—
|
|
|
(27.3)
|
|
|
—
|
|
|
(27.3)
|
|
Loss on
extinguishment of debt (4)
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Expenses associated
with the East Dubuque Merger (5)
|
1.2
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Adjusted net income
before income tax expense and noncontrolling interest
|
43.2
|
|
|
174.6
|
|
|
52.6
|
|
|
356.9
|
|
Adjusted net loss
attributed to noncontrolling interest
|
(11.9)
|
|
|
(63.8)
|
|
|
(18.6)
|
|
|
(117.5)
|
|
Income tax expense,
as adjusted
|
(14.2)
|
|
|
(38.7)
|
|
|
(8.5)
|
|
|
(82.4)
|
|
Adjusted net income
attributable to CVR Energy stockholders
|
$
|
17.1
|
|
|
$
|
72.1
|
|
|
$
|
25.5
|
|
|
$
|
157.0
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.20
|
|
|
$
|
0.83
|
|
|
$
|
0.29
|
|
|
$
|
1.81
|
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between the Petroleum segment's net
sales and cost of product sold (exclusive of depreciation and
amortization). Refining margin is a non-GAAP measure that we
believe is important to investors in evaluating the refineries'
performance as a general indication of the amount above their cost
of product sold at which they are able to sell refined products.
Each of the components used in this calculation (net sales and cost
of product sold exclusive of depreciation and amortization) can be
taken directly from our Petroleum segment's Statements of
Operations. Our calculation of refining margin may differ from
similar calculations of other companies in the industry, thereby
limiting its usefulness as a comparative measure. In order to
derive the refining margin per crude oil throughput barrel, we
utilize the total dollar figures for refining margin as derived
above and divide by the applicable number of crude oil throughput
barrels for the period. We believe that refining margin is
important to enable investors to better understand and evaluate the
Petroleum segment's ongoing operating results and allow for greater
transparency in the review of our overall financial, operational
and economic performance.
Refining margin per crude oil throughput barrel adjusted for
FIFO impact is a measurement calculated as the difference between
the Petroleum segment's net sales and cost of product sold
(exclusive of depreciation and amortization) adjusted for FIFO
impact. Refining margin adjusted for FIFO impact is a non-GAAP
measure that we believe is important to investors in evaluating the
refineries' performance as a general indication of the amount above
their cost of product sold (taking into account the impact of the
utilization of FIFO) at which they are able to sell refined
products. Our calculation of refining margin adjusted for FIFO
impact may differ from calculations of other companies in the
industry, thereby limiting its usefulness as a comparative measure.
Under the FIFO accounting method, 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 FIFO
impact when crude oil prices increase and an unfavorable FIFO
impact when crude oil prices decrease.
Gross profit (loss) is calculated as the difference between the
Petroleum segment's net sales, cost of product sold (exclusive of
depreciation and amortization), direct operating expenses
(exclusive of depreciation and amortization), major scheduled
turnaround expenses, flood insurance recovery and depreciation and
amortization. Gross profit (loss) per crude throughput barrel
is calculated as gross profit (loss) as derived above divided by
the refineries' crude oil throughput volumes for the respective
periods presented. Gross profit (loss) is a non-GAAP measure that
should not be substituted for operating income. Management believes
it is important to investors in evaluating the refineries'
performance and the Petroleum segment's ongoing operating results.
Our calculation of gross profit (loss) may differ from similar
calculations of other companies in the industry, thereby limiting
its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss)
before (i) interest expense and other financing costs, net of
interest income, (ii) income tax expense and (iii) depreciation and
amortization. Adjusted EBITDA represents EBITDA adjusted for (i)
FIFO impact (favorable) unfavorable; (ii) loss on extinguishment of
debt; (iii) major scheduled turnaround expenses; (iv) (gain) loss
on derivatives, net; (v) current period settlements on derivative
contracts; (vi) flood insurance recovery; and (vii) expenses
associated with the East Dubuque Merger. EBITDA and Adjusted EBITDA
are not recognized terms under GAAP and should not be substituted
for net income (loss) or cash flow from operations. Management
believes that EBITDA and Adjusted EBITDA enable investors to better
understand and evaluate our ongoing operating results and allow for
greater transparency in reviewing our overall financial,
operational and economic performance. EBITDA and Adjusted EBITDA
presented by other companies may not be comparable to our
presentation, since each company may define these terms
differently.
EBITDA for the quarter and six months ended June 30, 2015 was also adjusted for share-based
compensation expense in calculating Adjusted EBITDA.
Beginning in 2016, share-based compensation expense is no longer
utilized as an adjustment to derive Adjusted EBITDA as no
equity-settled awards remain outstanding for CVR Energy or any of
its subsidiaries, and CVR Partners and CVR Refining are responsible
for reimbursing CVR Energy for their allocated portion of all
outstanding awards. Management believes, based on the nature,
classification and cash settlement feature of the currently
outstanding awards, that it is no longer necessary to adjust EBITDA
for share-based compensation expense to derive Adjusted EBITDA. For
comparison purposes we have also provided Adjusted EBITDA for the
quarter and six months ended June 30,
2015 without adjusting for share-based compensation expense
in order to provide a comparison to Adjusted EBITDA for the quarter
and six months ended June 30,
2016.
A reconciliation of net income to EBITDA and EBITDA to Adjusted
EBITDA for the quarter and six months ended June 30, 2016 and
2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
Net income
attributable to CVR Energy stockholders
|
$
|
28.4
|
|
|
$
|
101.9
|
|
|
$
|
12.2
|
|
|
$
|
156.7
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
18.4
|
|
|
11.6
|
|
|
30.3
|
|
|
24.2
|
|
Income tax expense
(benefit)
|
21.6
|
|
|
58.1
|
|
|
(0.2)
|
|
|
82.1
|
|
Depreciation and
amortization
|
50.7
|
|
|
42.5
|
|
|
90.7
|
|
|
84.5
|
|
EBITDA adjustments
included in noncontrolling interest
|
(36.0)
|
|
|
(19.2)
|
|
|
(54.4)
|
|
|
(38.7)
|
|
EBITDA
|
83.1
|
|
|
194.9
|
|
|
78.6
|
|
|
308.8
|
|
Add:
|
|
|
|
|
|
|
|
FIFO impact,
favorable
|
(46.2)
|
|
|
(36.4)
|
|
|
(37.4)
|
|
|
(11.9)
|
|
Share-based
compensation (1)
|
—
|
|
|
1.9
|
|
|
—
|
|
|
5.9
|
|
Major scheduled
turnaround expenses
|
8.7
|
|
|
2.1
|
|
|
38.1
|
|
|
2.1
|
|
Loss on derivatives,
net
|
1.9
|
|
|
12.6
|
|
|
3.1
|
|
|
64.0
|
|
Current period
settlement on derivative contracts (2)
|
7.1
|
|
|
(28.5)
|
|
|
28.5
|
|
|
(34.8)
|
|
Flood insurance
recovery (3)
|
—
|
|
|
(27.3)
|
|
|
—
|
|
|
(27.3)
|
|
Loss on
extinguishment of debt (4)
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Expenses associated
with the East Dubuque Merger (5)
|
1.2
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Adjustments included
in noncontrolling interest
|
3.5
|
|
|
26.4
|
|
|
(17.9)
|
|
|
2.6
|
|
Adjusted
EBITDA
|
$
|
64.4
|
|
|
$
|
145.7
|
|
|
$
|
100.6
|
|
|
$
|
309.4
|
|
Petroleum and Nitrogen Fertilizer EBITDA and Adjusted EBITDA.
EBITDA by operating segment represents net income (loss) before (i)
interest expense and other financing costs, net of interest income,
(ii) income tax expense and (iii) depreciation and amortization.
Adjusted EBITDA by operating segment represents EBITDA by operating
segment adjusted for (i) FIFO impact (favorable) unfavorable; (ii)
share-based compensation, non-cash; (iii) loss on extinguishment of
debt; (iv) major scheduled turnaround expenses; (v) (gain) loss on
derivatives, net; (vi) current period settlements on derivative
contracts; (vii) flood insurance recovery and (viii) expenses
associated with the East Dubuque Merger. We present Adjusted EBITDA
by operating segment because it is the starting point for CVR
Refining's and CVR Partners' calculation of available cash for
distribution. EBITDA and Adjusted EBITDA by operating segment are
not recognized terms under GAAP and should not be substituted for
net income (loss) as a measure of performance. Management believes
that EBITDA and Adjusted EBITDA by operating segment enable
investors to better understand CVR Refining's and CVR Partners'
ability to make distributions to their common unitholders, help
investors evaluate our ongoing operating results and allow for
greater transparency in reviewing our overall financial,
operational and economic performance. EBITDA and Adjusted EBITDA
presented by other companies may not be comparable to our
presentation, since each company may define these terms
differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to
Adjusted EBITDA for the Petroleum and Nitrogen Fertilizer segments
for the quarter and six months ended June 30, 2016 and 2015 is
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
Petroleum:
|
|
|
|
|
|
|
|
Petroleum net
income
|
$
|
78.1
|
|
|
$
|
227.8
|
|
|
$
|
10.1
|
|
|
$
|
274.5
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
10.1
|
|
|
10.3
|
|
|
20.9
|
|
|
21.5
|
|
Income tax expense
(benefit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
31.6
|
|
|
34.2
|
|
|
63.1
|
|
|
68.2
|
|
Petroleum
EBITDA
|
119.8
|
|
|
272.3
|
|
|
94.1
|
|
|
364.2
|
|
Add:
|
|
|
|
|
|
|
|
FIFO impact,
favorable
|
(46.2)
|
|
|
(36.4)
|
|
|
(37.4)
|
|
|
(11.9)
|
|
Share-based
compensation, non-cash
|
—
|
|
|
(0.1)
|
|
|
—
|
|
|
0.1
|
|
Major scheduled
turnaround expenses
|
2.1
|
|
|
1.7
|
|
|
31.5
|
|
|
1.7
|
|
Loss on derivatives,
net
|
1.9
|
|
|
12.6
|
|
|
3.1
|
|
|
64.0
|
|
Current period
settlements on derivative contracts (2)
|
7.1
|
|
|
(28.5)
|
|
|
28.5
|
|
|
(34.8)
|
|
Flood insurance
recovery (3)
|
—
|
|
|
(27.3)
|
|
|
—
|
|
|
(27.3)
|
|
Adjusted Petroleum
EBITDA
|
$
|
84.7
|
|
|
$
|
194.3
|
|
|
$
|
119.8
|
|
|
$
|
356.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
Nitrogen fertilizer
net income (loss)
|
$
|
(17.0)
|
|
|
$
|
27.0
|
|
|
$
|
1.0
|
|
|
$
|
56.8
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
15.5
|
|
|
1.7
|
|
|
17.2
|
|
|
3.4
|
|
Income tax expense
(benefit)
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Depreciation and
amortization
|
17.6
|
|
|
7.0
|
|
|
24.5
|
|
|
13.8
|
|
Nitrogen Fertilizer
EBITDA
|
16.2
|
|
|
35.7
|
|
|
42.8
|
|
|
74.0
|
|
Add:
|
|
|
|
|
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
Major scheduled
turnaround expenses
|
6.6
|
|
|
0.4
|
|
|
6.6
|
|
|
0.4
|
|
Loss on
extinguishment of debt (4)
|
5.1
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
Expenses associated
with the East Dubuque Merger (5)
|
1.2
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
29.1
|
|
|
$
|
36.1
|
|
|
$
|
57.0
|
|
|
$
|
74.5
|
|
|
|
|
|
|
|
(1)
|
Beginning in 2016,
share-based compensation expense is no longer utilized as an
adjustment to derive Adjusted net income and Adjusted EBITDA as no
equity-settled awards remain outstanding for CVR Energy or any of
its subsidiaries, and CVR Partners and CVR Refining are responsible
for reimbursing CVR Energy for their allocated portion of all
outstanding awards. Management believes, based on the nature,
classification and cash settlement feature of the currently
outstanding awards, that it is no longer necessary to adjust net
income (loss) and EBITDA for share-based compensation expense to
derive Adjusted net income and Adjusted EBITDA. Adjusted net income
attributable to CVR Energy stockholders and Adjusted EBITDA for the
three months ended June 30, 2015 would have been $71.0 million and
$143.8 million, respectively, without adjusting for share-based
compensation expense of $1.9 million. Additionally, adjusted net
income attributable to CVR Energy stockholders and Adjusted EBITDA
for the six months ended June 30, 2015 would have been $153.5
million and $303.5 million, respectively, without adjusting for
share-based compensation expense of $5.9 million.
|
|
|
(2)
|
Represents the
portion of gain (loss) on derivatives, net related to contracts
that matured during the respective periods and settled with
counterparties. There are no premiums paid or received at inception
of the derivative contracts and upon settlement, there is no cost
recovery associated with these contracts.
|
|
|
(3)
|
Represents an
insurance recovery from Coffeyville Resources Refining and
Marketing, LLC's environmental insurance carriers as a result of
the flood and crude oil discharge at the Coffeyville refinery on
June/July 2007.
|
|
|
(4)
|
Represents a loss on
extinguishment of debt incurred by CVR Partners in June 2016 in
connection with the repurchase of senior notes assumed in the East
Dubuque Merger, which includes a prepayment premium and write-off
of the unamortized purchase accounting adjustment.
|
|
|
(5)
|
On April 1, 2016, CVR
Partners completed the East Dubuque Merger. The Nitrogen Fertilizer
Partnership incurred legal and other professional fees and other
merger related expenses for the quarter and six months ended
June 30, 2016 that are referred to herein as expenses
associated with the East Dubuque Merger, which are included in
selling, general and administrative expenses.
|
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SOURCE CVR Energy, Inc.