SUGAR LAND, Texas, Feb. 16, 2017 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced full year 2016 net income of
$24.7 million, or 28 cents per diluted share, on net sales of
$4,782.4 million, compared to net
income for full year 2015 of $169.6
million, or $1.95 per diluted
share, on net sales of $5,432.5
million. Full year 2016 adjusted EBITDA, a non-GAAP
financial measure, was $181.6 million
compared to full year 2015 adjusted EBITDA of $498.8 million.
For the fourth quarter of 2016, the company reported net income
of $7.1 million, or 8 cents per diluted share, on net sales of
$1,353.4 million, compared to a
fourth quarter 2015 net loss of $45
million, or 52 cents per
diluted share, on net sales of $1,010.6
million.
Fourth quarter 2016 adjusted EBITDA was $22.8 million compared to adjusted EBITDA of
$35.6 million for the same period a
year earlier.
"CVR Refining's Coffeyville and
Wynnewood refineries performed
well during the 2016 fourth quarter, posting a combined crude
throughput of 207,422 barrels per day (bpd)," said Jack Lipinski, CVR Energy's chief executive
officer. "CVR Partners' Coffeyville and East
Dubuque facilities also recorded high on-stream rates for
the quarter.
"CVR Energy's fourth quarter results were negatively impacted by
seasonally weak refining margins and continued high Renewable
Identification Number (RIN) expenses," Lipinski said. "In addition,
low nitrogen fertilizer pricing and a decrease in ammonia shipments
due to unfavorable application conditions further impacted
results."
CVR Energy also announced a fourth quarter 2016 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
March 6, 2017, to stockholders of
record on Feb. 27, 2017.
CVR Energy's fourth quarter cash dividend brings the cumulative
cash dividends paid or declared for the 2016 full year to
$2.00 per share.
Today, CVR Refining and CVR Partners announced that the
partnerships will not pay a cash distribution for the 2016 fourth
quarter.
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
fourth quarter 2016 operating income of $15.3 million, on net sales of $1,269.4 million, compared to a fourth quarter
2015 operating loss of $135.5
million, on net sales of $948.3
million.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $7.32 in the 2016 fourth quarter, compared to
$8.96 during the same period in 2015.
Direct operating expenses (exclusive of depreciation and
amortization), excluding major scheduled turnaround expenses, per
crude oil throughput barrel, for the 2016 fourth quarter were
$4.96, compared to $7.04 in the fourth quarter of 2015.
Fourth quarter 2016 throughputs of crude oil and all other
feedstocks and blendstocks totaled 223,266 bpd, compared to fourth
quarter 2015 throughputs of crude oil and all other feedstocks and
blendstocks of 172,364 bpd.
Nitrogen Fertilizers Business
The fertilizer business, which is operated by CVR Partners and
includes the Coffeyville and
East Dubuque fertilizer
facilities, reported fourth quarter 2016 operating income of
$1.0 million on net sales of
$84.9 million, compared to operating
income of $20.4 million on net sales
of $66.0 million for the fourth
quarter of 2015.
For the fourth quarter of 2016, consolidated average realized
gate prices for UAN and ammonia were $147 per ton and $352 per ton, respectively. Average realized gate
prices for UAN and ammonia for the Coffeyville facility were $221 per ton and $479 per ton, respectively, for the same period
in 2015.
CVR Partners' fertilizer facilities produced a combined 207,600
tons of ammonia and purchased an additional 2,000 tons of ammonia
during the fourth quarter of 2016, of which 62,600 net tons were
available for sale while the rest was upgraded to other fertilizer
products, including 330,700 tons of UAN. In the 2015 fourth
quarter, the Coffeyville facility
produced 116,100 tons of ammonia, of which 6,100 net tons were
available for sale while the remainder was upgraded to 270,500 tons
of UAN.
CVR Partners' results include the results of the East Dubuque fertilizer facility beginning
April 1, 2016.
Cash and Debt
Consolidated cash and cash equivalents, which included
$314.1 million for CVR Refining and
$55.6 million for CVR Partners, was
$735.8 million at Dec. 31, 2016. Consolidated total debt was
$1,164.6 million at Dec. 31, 2016. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Fourth Quarter 2016 Earnings Conference Call
CVR Energy previously announced that it will host its fourth
quarter 2016 Earnings Conference Call for analysts and investors on
Thursday, Feb. 16, 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/1003/19478. 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/1003/19478. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13653924.
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:
Brandee
Stephens
CVR Energy, Inc.
(281) 207-3516
MediaRelations@CVREnergy.com
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|
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CVR Energy,
Inc.
|
|
|
Financial and
Operational Data (all information in this release is unaudited
other than the statements of operations and cash flow data for the
year ended December 31, 2015 and the balance sheet data as of
December 31, 2015).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,353.4
|
|
|
$
|
1,010.6
|
|
|
$
|
4,782.4
|
|
|
$
|
5,432.5
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
1,128.1
|
|
|
847.9
|
|
|
3,847.5
|
|
|
4,190.4
|
|
|
Direct operating
expenses(1)
|
132.6
|
|
|
212.1
|
|
|
541.8
|
|
|
584.7
|
|
|
Depreciation and
amortization
|
49.9
|
|
|
38.7
|
|
|
184.5
|
|
|
156.4
|
|
|
Cost of
sales
|
1,310.6
|
|
|
1,098.7
|
|
|
4,573.8
|
|
|
4,931.5
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Selling, general and
administrative expenses(1)
|
27.5
|
|
|
20.4
|
|
|
109.1
|
|
|
99.0
|
|
|
Depreciation and
amortization
|
2.4
|
|
|
2.2
|
|
|
8.6
|
|
|
7.7
|
|
|
Operating
income (loss)
|
12.9
|
|
|
(110.7)
|
|
|
90.9
|
|
|
421.6
|
|
|
Interest expense and
other financing costs
|
(27.1)
|
|
|
(11.9)
|
|
|
(83.9)
|
|
|
(48.4)
|
|
|
Interest
income
|
0.2
|
|
|
0.2
|
|
|
0.7
|
|
|
1.0
|
|
|
Gain (loss) on
derivatives, net
|
(14.6)
|
|
|
23.6
|
|
|
(19.4)
|
|
|
(28.6)
|
|
|
Gain (loss) on
extinguishment of debt
|
0.2
|
|
|
—
|
|
|
(4.9)
|
|
|
—
|
|
|
Other income,
net
|
0.3
|
|
|
0.2
|
|
|
5.7
|
|
|
36.7
|
|
|
Income (loss)
before income tax expense (benefit)
|
(28.1)
|
|
|
(98.6)
|
|
|
(10.9)
|
|
|
382.3
|
|
|
Income tax expense
(benefit)
|
(22.1)
|
|
|
(20.7)
|
|
|
(19.8)
|
|
|
84.5
|
|
|
Net income
(loss)
|
(6.0)
|
|
|
(77.9)
|
|
|
8.9
|
|
|
297.8
|
|
|
Less: Net
income (loss) attributable to noncontrolling interest
|
(13.1)
|
|
|
(32.9)
|
|
|
(15.8)
|
|
|
128.2
|
|
|
Net income
(loss) attributable to CVR Energy stockholders
|
$
|
7.1
|
|
|
$
|
(45.0)
|
|
|
$
|
24.7
|
|
|
$
|
169.6
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share
|
$
|
0.08
|
|
|
$
|
(0.52)
|
|
|
$
|
0.28
|
|
|
$
|
1.95
|
|
|
Dividends declared
per share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
2.00
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
22.8
|
|
|
$
|
35.6
|
|
|
$
|
181.6
|
|
|
$
|
498.8
|
|
|
Adjusted net income
(loss)*
|
$
|
4.4
|
|
|
$
|
(4.3)
|
|
|
$
|
41.5
|
|
|
$
|
235.1
|
|
|
Adjusted net income
(loss) per diluted share*
|
$
|
0.05
|
|
|
$
|
(0.05)
|
|
|
$
|
0.48
|
|
|
$
|
2.71
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic and diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
(1)
|
Direct operating
expenses and selling, general and administrative expenses for the
three months and years ended December 31, 2016 and 2015 are shown
exclusive of depreciation and amortization, which amounts are
presented separately below direct operating expenses and selling,
general and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
As of
December 31,
2016
|
|
As of
December 31,
2015
|
|
|
|
(audited)
|
|
(in
millions)
|
|
Balance Sheet
Data:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
735.8
|
|
|
$
|
765.1
|
|
|
Working
capital(1)
|
749.6
|
|
|
789.0
|
|
|
Total
assets(1)
|
4,050.2
|
|
|
3,299.4
|
|
|
Total debt, including
current portion(1)
|
1,164.6
|
|
|
667.1
|
|
|
Total CVR
stockholders' equity
|
858.1
|
|
|
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 form the
carrying value of the debt.
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
48.6
|
|
|
$
|
(75.5)
|
|
|
$
|
267.5
|
|
|
$
|
536.8
|
|
|
Investing
activities
|
(29.4)
|
|
|
(76.8)
|
|
|
(201.4)
|
|
|
(150.6)
|
|
|
Financing
activities
|
(46.0)
|
|
|
(94.6)
|
|
|
(95.4)
|
|
|
(374.8)
|
|
|
Net cash
flow
|
$
|
(26.8)
|
|
|
$
|
(246.9)
|
|
|
$
|
(29.3)
|
|
|
$
|
11.4
|
|
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 serve 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 year ended
December 31, 2016 are included in CVR
Refining's press release dated February 16, 2017. The Nitrogen
Fertilizer segment is operated by CVR Partners, LP ("CVR
Partners"), in which we own approximately 34% of the common units
as of December 31, 2016 and serve as
the general partner. On April 1,
2016, CVR Partners completed the merger (the "East Dubuque
Merger") with 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 year ended
December 31, 2016 are included in CVR
Partners' press release dated February 16, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR Refining)
|
|
Nitrogen
Fertilizer (CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
Three Months Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,269.4
|
|
|
$
|
84.9
|
|
|
$
|
(0.9)
|
|
|
$
|
1,353.4
|
|
|
Cost of materials and
other
|
|
1,107.5
|
|
|
21.5
|
|
|
(0.9)
|
|
|
1,128.1
|
|
|
Direct operating
expenses(1)
|
|
94.7
|
|
|
37.9
|
|
|
—
|
|
|
132.6
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
18.5
|
|
|
7.3
|
|
|
1.7
|
|
|
27.5
|
|
|
Depreciation and
amortization
|
|
33.4
|
|
|
17.2
|
|
|
1.7
|
|
|
52.3
|
|
|
Operating income (loss)
|
|
$
|
15.3
|
|
|
$
|
1.0
|
|
|
$
|
(3.4)
|
|
|
$
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
18.9
|
|
|
$
|
5.9
|
|
|
$
|
3.2
|
|
|
$
|
28.0
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2016
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
4,431.3
|
|
|
$
|
356.3
|
|
|
$
|
(5.2)
|
|
|
$
|
4,782.4
|
|
|
Cost of materials and
other
|
|
3,759.2
|
|
|
93.7
|
|
|
(5.4)
|
|
|
3,847.5
|
|
|
Direct operating
expenses(1)
|
|
361.9
|
|
|
141.7
|
|
|
0.1
|
|
|
503.7
|
|
|
Major scheduled
turnaround expenses
|
|
31.5
|
|
|
6.6
|
|
|
—
|
|
|
38.1
|
|
|
Selling, general and
administrative
|
|
71.9
|
|
|
29.3
|
|
|
7.9
|
|
|
109.1
|
|
|
Depreciation and
amortization
|
|
129.0
|
|
|
58.2
|
|
|
5.9
|
|
|
193.1
|
|
|
Operating income (loss)
|
|
$
|
77.8
|
|
|
$
|
26.8
|
|
|
$
|
(13.7)
|
|
|
$
|
90.9
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
102.3
|
|
|
$
|
23.2
|
|
|
$
|
7.2
|
|
|
$
|
132.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
948.3
|
|
|
$
|
66.0
|
|
|
$
|
(3.7)
|
|
|
$
|
1,010.6
|
|
|
Cost of materials and
other
|
|
842.8
|
|
|
9.5
|
|
|
(4.4)
|
|
|
847.9
|
|
|
Direct operating
expenses(1)
|
|
103.8
|
|
|
23.3
|
|
|
0.1
|
|
|
127.2
|
|
|
Major scheduled
turnaround expenses
|
|
84.9
|
|
|
—
|
|
|
—
|
|
|
84.9
|
|
|
Flood insurance
recovery(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
20.2
|
|
|
5.6
|
|
|
(5.4)
|
|
|
20.4
|
|
|
Depreciation and
amortization
|
|
32.1
|
|
|
7.2
|
|
|
1.6
|
|
|
40.9
|
|
|
Operating income (loss)
|
|
$
|
(135.5)
|
|
|
$
|
20.4
|
|
|
$
|
4.4
|
|
|
$
|
(110.7)
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
71.1
|
|
|
$
|
4.6
|
|
|
$
|
1.1
|
|
|
$
|
76.8
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,161.9
|
|
|
$
|
289.2
|
|
|
$
|
(18.6)
|
|
|
$
|
5,432.5
|
|
|
Cost of materials and
other
|
|
4,143.6
|
|
|
65.2
|
|
|
(18.4)
|
|
|
4,190.4
|
|
|
Direct operating
expenses(1)
|
|
376.3
|
|
|
99.1
|
|
|
0.1
|
|
|
475.5
|
|
|
Major scheduled
turnaround expenses
|
|
102.2
|
|
|
7.0
|
|
|
—
|
|
|
109.2
|
|
|
Flood insurance
recovery(2)
|
|
(27.3)
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Selling, general and
administrative
|
|
75.2
|
|
|
20.8
|
|
|
3.0
|
|
|
99.0
|
|
|
Depreciation and
amortization
|
|
130.2
|
|
|
28.4
|
|
|
5.5
|
|
|
164.1
|
|
|
Operating income (loss)
|
|
$
|
361.7
|
|
|
$
|
68.7
|
|
|
$
|
(8.8)
|
|
|
$
|
421.6
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
194.7
|
|
|
$
|
17.0
|
|
|
$
|
7.0
|
|
|
$
|
218.7
|
|
|
|
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
|
|
(2)
|
Represents an
insurance recovery from Coffeyville Resources Refining and
Marketing, LLC's ("CRRM") environmental insurance carriers as a
result of the flood and crude oil discharge at the Coffeyville
refinery on June/July 2007.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR Refining)
|
|
Nitrogen
Fertilizer (CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
314.1
|
|
|
$
|
55.6
|
|
|
$
|
366.1
|
|
|
$
|
735.8
|
|
|
Total
assets
|
|
2,331.9
|
|
|
1,312.2
|
|
|
406.1
|
|
|
4,050.2
|
|
|
Total debt, including
current portion
|
|
541.5
|
|
|
623.1
|
|
|
—
|
|
|
1,164.6
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
125.0
|
|
|
(31.5)
|
|
|
667.3
|
|
|
|
|
(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 form 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
year ended December 31, 2016 are
included in CVR Refining's press release dated February 16,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,269.4
|
|
|
$
|
948.3
|
|
|
$
|
4,431.3
|
|
|
$
|
5,161.9
|
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of materials and
other
|
1,107.5
|
|
|
842.8
|
|
|
3,759.2
|
|
|
4,143.6
|
|
|
Direct operating
expenses(1)
|
94.7
|
|
|
103.8
|
|
|
361.9
|
|
|
376.3
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
Depreciation and
amortization
|
32.6
|
|
|
31.5
|
|
|
126.3
|
|
|
128.0
|
|
|
Cost of
sales
|
1,234.8
|
|
|
1,063.0
|
|
|
4,278.9
|
|
|
4,750.1
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Selling, general and
administrative expenses(1)
|
18.5
|
|
|
20.2
|
|
|
71.9
|
|
|
75.2
|
|
|
Depreciation and
amortization
|
0.8
|
|
|
0.6
|
|
|
2.7
|
|
|
2.2
|
|
|
Operating income
(loss)
|
15.3
|
|
|
(135.5)
|
|
|
77.8
|
|
|
361.7
|
|
|
Interest expense and
other financing costs
|
(11.7)
|
|
|
(10.5)
|
|
|
(43.4)
|
|
|
(42.6)
|
|
|
Interest
income
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|
Gain (loss) on
derivatives, net
|
(14.6)
|
|
|
23.6
|
|
|
(19.4)
|
|
|
(28.6)
|
|
|
Other income,
net
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
|
Income (loss) before
income tax expense
|
(10.7)
|
|
|
(122.2)
|
|
|
15.3
|
|
|
291.2
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
(loss)
|
$
|
(10.7)
|
|
|
$
|
(122.2)
|
|
|
$
|
15.3
|
|
|
$
|
291.2
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
$
|
34.6
|
|
|
$
|
(114.7)
|
|
|
$
|
152.4
|
|
|
$
|
439.1
|
|
|
Refining
margin*
|
$
|
161.9
|
|
|
$
|
105.5
|
|
|
$
|
672.1
|
|
|
$
|
1,018.3
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
139.5
|
|
|
$
|
132.1
|
|
|
$
|
620.0
|
|
|
$
|
1,078.6
|
|
|
Adjusted Petroleum
EBITDA*
|
$
|
27.7
|
|
|
$
|
16.4
|
|
|
$
|
222.8
|
|
|
$
|
602.0
|
|
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
(1)
|
Direct operating
expenses for the three months and years ended December 31, 2016 and
2015 are shown exclusive of depreciation and amortization and major
scheduled turnaround expenses, which amounts are presented
separately below direct operating expenses. Selling, general and
administrative expenses for the three months and years ended
December 31, 2016 and 2015 are shown exclusive of depreciation and
amortization, which amounts are presented separately below selling,
general and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(dollars per
barrel)
|
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
$
|
1.81
|
|
|
$
|
(7.80)
|
|
|
$
|
2.10
|
|
|
$
|
6.23
|
|
|
Gross profit (loss)
excluding flood insurance recovery*
|
1.81
|
|
|
(7.80)
|
|
|
2.10
|
|
|
5.84
|
|
|
Refining
margin*
|
8.49
|
|
|
7.16
|
|
|
9.27
|
|
|
14.45
|
|
|
FIFO impact
(favorable) unfavorable
|
(1.17)
|
|
|
1.80
|
|
|
(0.72)
|
|
|
0.86
|
|
|
Refining margin
adjusted for FIFO impact*
|
7.32
|
|
|
8.96
|
|
|
8.55
|
|
|
15.31
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.96
|
|
|
12.81
|
|
|
5.43
|
|
|
6.79
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.96
|
|
|
7.04
|
|
|
4.99
|
|
|
5.34
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
4.64
|
|
|
12.34
|
|
|
5.08
|
|
|
6.40
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
4.64
|
|
|
$
|
6.79
|
|
|
$
|
4.67
|
|
|
$
|
5.04
|
|
|
Barrels sold (barrels
per day)
|
221,921
|
|
|
166,168
|
|
|
211,643
|
|
|
204,708
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Petroleum Segment
Summary Refining Throughput and Production Data
(bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
185,154
|
|
|
82.9
|
%
|
|
151,215
|
|
|
87.7
|
%
|
|
177,256
|
|
|
84.8
|
%
|
|
176,097
|
|
|
86.0
|
%
|
|
Medium
|
3,160
|
|
|
1.4
|
%
|
|
209
|
|
|
0.1
|
%
|
|
2,525
|
|
|
1.2
|
%
|
|
2,460
|
|
|
1.2
|
%
|
|
Heavy
sour
|
19,108
|
|
|
8.6
|
%
|
|
8,715
|
|
|
5.1
|
%
|
|
18,261
|
|
|
8.7
|
%
|
|
14,520
|
|
|
7.1
|
%
|
|
Total crude oil
throughput
|
207,422
|
|
|
92.9
|
%
|
|
160,139
|
|
|
92.9
|
%
|
|
198,042
|
|
|
94.7
|
%
|
|
193,077
|
|
|
94.3
|
%
|
|
All other feedstocks
and blendstocks
|
15,844
|
|
|
7.1
|
%
|
|
12,225
|
|
|
7.1
|
%
|
|
11,077
|
|
|
5.3
|
%
|
|
11,672
|
|
|
5.7
|
%
|
|
Total
throughput
|
223,266
|
|
|
100.0
|
%
|
|
172,364
|
|
|
100.0
|
%
|
|
209,119
|
|
|
100.0
|
%
|
|
204,749
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
114,682
|
|
|
51.1
|
%
|
|
80,111
|
|
|
46.3
|
%
|
|
108,762
|
|
|
51.9
|
%
|
|
99,961
|
|
|
48.5
|
%
|
|
Distillate
|
91,021
|
|
|
40.5
|
%
|
|
70,201
|
|
|
40.6
|
%
|
|
85,092
|
|
|
40.6
|
%
|
|
85,953
|
|
|
41.7
|
%
|
|
Other (excluding
internally produced fuel)
|
18,782
|
|
|
8.4
|
%
|
|
22,638
|
|
|
13.1
|
%
|
|
15,751
|
|
|
7.5
|
%
|
|
20,074
|
|
|
9.8
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
224,485
|
|
|
100.0
|
%
|
|
172,950
|
|
|
100.0
|
%
|
|
209,605
|
|
|
100.0
|
%
|
|
205,988
|
|
|
100.0
|
%
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.42
|
|
|
|
|
$
|
1.32
|
|
|
|
|
$
|
1.34
|
|
|
|
|
$
|
1.61
|
|
|
|
|
Distillate
|
1.52
|
|
|
|
|
1.34
|
|
|
|
|
1.36
|
|
|
|
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
49.29
|
|
|
$
|
42.16
|
|
|
$
|
43.47
|
|
|
$
|
48.76
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
WTI less WTS (light/medium sour)
|
0.92
|
|
|
0.35
|
|
|
0.85
|
|
|
(0.28)
|
|
|
WTI less WCS (heavy sour)
|
15.04
|
|
|
14.45
|
|
|
13.95
|
|
|
13.20
|
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
|
Gasoline
|
12.96
|
|
|
12.79
|
|
|
15.42
|
|
|
19.89
|
|
|
Heating
Oil
|
16.45
|
|
|
15.21
|
|
|
13.89
|
|
|
20.93
|
|
|
NYMEX 2-1-1
Crack Spread
|
14.70
|
|
|
14.00
|
|
|
14.66
|
|
|
20.41
|
|
|
PADD II Group 3
Product Basis:
|
|
|
|
|
|
|
|
|
Gasoline
|
(3.70)
|
|
|
0.26
|
|
|
(3.62)
|
|
|
(2.12)
|
|
|
Ultra Low Sulfur Diesel
|
(2.55)
|
|
|
(0.44)
|
|
|
(0.92)
|
|
|
(2.02)
|
|
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
|
|
|
|
|
Gasoline
|
9.28
|
|
|
13.05
|
|
|
11.82
|
|
|
17.76
|
|
|
Ultra Low Sulfur Diesel
|
13.91
|
|
|
14.76
|
|
|
12.96
|
|
|
18.91
|
|
|
PADD II Group 3
2-1-1
|
11.60
|
|
|
13.91
|
|
|
12.39
|
|
|
18.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except operating statistics)
|
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
854.7
|
|
|
$
|
522.6
|
|
|
$
|
2,948.9
|
|
|
$
|
3,220.6
|
|
|
Cost of materials and
other
|
750.6
|
|
|
490.5
|
|
|
2,513.9
|
|
|
2,626.1
|
|
|
Direct operating
expenses(1)
|
52.0
|
|
|
53.5
|
|
|
196.4
|
|
|
209.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
18.4
|
|
|
17.5
|
|
|
69.7
|
|
|
72.1
|
|
|
Gross profit
(loss)
|
33.7
|
|
|
(123.8)
|
|
|
137.4
|
|
|
238.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Direct operating
expenses(1)
|
52.0
|
|
|
53.5
|
|
|
196.4
|
|
|
209.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
18.4
|
|
|
17.5
|
|
|
69.7
|
|
|
72.1
|
|
|
Refining
Margin*
|
104.1
|
|
|
32.1
|
|
|
435.0
|
|
|
594.5
|
|
|
FIFO impact,
(favorable) unfavorable
|
(15.4)
|
|
|
17.4
|
|
|
(37.8)
|
|
|
38.0
|
|
|
Refining Margin
adjusted for FIFO impact*
|
$
|
88.7
|
|
|
$
|
49.5
|
|
|
$
|
397.2
|
|
|
$
|
632.5
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
$
|
2.76
|
|
|
$
|
(17.42)
|
|
|
$
|
3.03
|
|
|
$
|
5.77
|
|
|
Gross profit (loss)
excluding flood insurance recovery*
|
2.76
|
|
|
(17.42)
|
|
|
3.03
|
|
|
5.11
|
|
|
Refining
margin*
|
8.55
|
|
|
4.52
|
|
|
9.57
|
|
|
14.37
|
|
|
FIFO impact
(favorable) unfavorable
|
(1.26)
|
|
|
2.45
|
|
|
(0.83)
|
|
|
0.92
|
|
|
Refining margin
adjusted for FIFO impact*
|
7.29
|
|
|
6.97
|
|
|
8.74
|
|
|
15.29
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.27
|
|
|
19.48
|
|
|
5.02
|
|
|
7.53
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.27
|
|
|
7.53
|
|
|
4.32
|
|
|
5.06
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
3.84
|
|
|
18.46
|
|
|
4.54
|
|
|
6.92
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
3.84
|
|
|
$
|
7.14
|
|
|
$
|
3.92
|
|
|
$
|
4.65
|
|
|
Barrels sold (barrels
per day)
|
146,930
|
|
|
81,484
|
|
|
137,047
|
|
|
123,279
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
(1)
|
Direct operating
expenses for the three months and years ended December 31, 2016 and
2015 are shown exclusive of depreciation and amortization, which
amounts are presented separately below direct operating
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
113,243
|
|
|
78.4
|
%
|
|
68,452
|
|
|
80.7
|
%
|
|
104,679
|
|
|
78.9
|
%
|
|
96,727
|
|
|
79.5
|
%
|
|
Medium
|
—
|
|
|
—
|
%
|
|
57
|
|
|
0.1
|
%
|
|
1,229
|
|
|
0.9
|
%
|
|
2,058
|
|
|
1.7
|
%
|
|
Heavy
sour
|
19,108
|
|
|
13.2
|
%
|
|
8,715
|
|
|
10.3
|
%
|
|
18,261
|
|
|
13.8
|
%
|
|
14,520
|
|
|
11.9
|
%
|
|
Total crude oil
throughput
|
132,351
|
|
|
91.6
|
%
|
|
77,224
|
|
|
91.1
|
%
|
|
124,169
|
|
|
93.6
|
%
|
|
113,305
|
|
|
93.1
|
%
|
|
All other feedstocks
and blendstocks
|
12,206
|
|
|
8.4
|
%
|
|
7,540
|
|
|
8.9
|
%
|
|
8,453
|
|
|
6.4
|
%
|
|
8,400
|
|
|
6.9
|
%
|
|
Total
throughput
|
144,557
|
|
|
100.0
|
%
|
|
84,764
|
|
|
100.0
|
%
|
|
132,622
|
|
|
100.0
|
%
|
|
121,705
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
75,273
|
|
|
51.1
|
%
|
|
36,493
|
|
|
42.1
|
%
|
|
69,303
|
|
|
51.4
|
%
|
|
57,815
|
|
|
46.5
|
%
|
|
Distillate
|
60,550
|
|
|
41.1
|
%
|
|
35,588
|
|
|
41.0
|
%
|
|
55,790
|
|
|
41.4
|
%
|
|
53,136
|
|
|
42.7
|
%
|
|
Other (excluding
internally produced fuel)
|
11,446
|
|
|
7.8
|
%
|
|
14,655
|
|
|
16.9
|
%
|
|
9,756
|
|
|
7.2
|
%
|
|
13,503
|
|
|
10.8
|
%
|
|
Total refining production
(excluding internally produced fuel)
|
147,269
|
|
|
100.0
|
%
|
|
86,736
|
|
|
100.0
|
%
|
|
134,849
|
|
|
100.0
|
%
|
|
124,454
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except operating statistics)
|
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
413.6
|
|
|
$
|
424.6
|
|
|
$
|
1,478.0
|
|
|
$
|
1,936.9
|
|
|
Cost of materials and
other
|
356.9
|
|
|
351.8
|
|
|
1,245.4
|
|
|
1,516.3
|
|
|
Direct operating
expenses(1)
|
42.7
|
|
|
49.2
|
|
|
165.5
|
|
|
166.2
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
12.8
|
|
|
12.6
|
|
|
50.7
|
|
|
50.2
|
|
|
Gross
profit
|
1.2
|
|
|
11.0
|
|
|
16.4
|
|
|
204.2
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Direct operating
expenses(1)
|
42.7
|
|
|
49.2
|
|
|
165.5
|
|
|
166.2
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
12.8
|
|
|
12.6
|
|
|
50.7
|
|
|
50.2
|
|
|
Refining
Margin*
|
56.7
|
|
|
72.8
|
|
|
232.6
|
|
|
420.6
|
|
|
FIFO impact,
(favorable) unfavorable
|
(7.0)
|
|
|
9.2
|
|
|
(14.2)
|
|
|
22.3
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
49.7
|
|
|
$
|
82.0
|
|
|
$
|
218.4
|
|
|
$
|
442.9
|
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
0.16
|
|
|
$
|
1.44
|
|
|
$
|
0.61
|
|
|
$
|
7.01
|
|
|
Refining
margin*
|
8.20
|
|
|
9.54
|
|
|
8.60
|
|
|
14.44
|
|
|
FIFO impact
(favorable) unfavorable
|
(1.01)
|
|
|
1.20
|
|
|
(0.53)
|
|
|
0.77
|
|
|
Refining margin
adjusted for FIFO impact*
|
7.19
|
|
|
10.74
|
|
|
8.07
|
|
|
15.21
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
6.19
|
|
|
6.44
|
|
|
6.12
|
|
|
5.71
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
6.19
|
|
|
6.44
|
|
|
6.12
|
|
|
5.71
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
6.20
|
|
|
6.31
|
|
|
6.06
|
|
|
5.59
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
6.20
|
|
|
$
|
6.31
|
|
|
$
|
6.06
|
|
|
$
|
5.59
|
|
|
Barrels sold (barrels
per day)
|
74,991
|
|
|
84,684
|
|
|
74,596
|
|
|
81,429
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
(1)
|
Direct operating
expenses for the three months and years ended December 31, 2016 and
2015 are shown exclusive of depreciation and amortization, which
amounts are presented separately below direct operating
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
71,911
|
|
|
91.4
|
%
|
|
82,763
|
|
|
94.5
|
%
|
|
72,577
|
|
|
94.9
|
%
|
|
79,370
|
|
|
95.6
|
%
|
|
Medium
|
3,160
|
|
|
4.0
|
%
|
|
152
|
|
|
0.2
|
%
|
|
1,296
|
|
|
1.7
|
%
|
|
402
|
|
|
0.5
|
%
|
|
Heavy
sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
Total crude oil
throughput
|
75,071
|
|
|
95.4
|
%
|
|
82,915
|
|
|
94.7
|
%
|
|
73,873
|
|
|
96.6
|
%
|
|
79,772
|
|
|
96.1
|
%
|
|
All other feedstocks
and blendstocks
|
3,638
|
|
|
4.6
|
%
|
|
4,685
|
|
|
5.3
|
%
|
|
2,624
|
|
|
3.4
|
%
|
|
3,272
|
|
|
3.9
|
%
|
|
Total
throughput
|
78,709
|
|
|
100.0
|
%
|
|
87,600
|
|
|
100.0
|
%
|
|
76,497
|
|
|
100.0
|
%
|
|
83,044
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
39,409
|
|
|
51.0
|
%
|
|
43,618
|
|
|
50.6
|
%
|
|
39,459
|
|
|
52.8
|
%
|
|
42,146
|
|
|
51.7
|
%
|
|
Distillate
|
30,471
|
|
|
39.5
|
%
|
|
34,613
|
|
|
40.1
|
%
|
|
29,302
|
|
|
39.2
|
%
|
|
32,817
|
|
|
40.2
|
%
|
|
Other (excluding
internally produced fuel)
|
7,336
|
|
|
9.5
|
%
|
|
7,983
|
|
|
9.3
|
%
|
|
5,995
|
|
|
8.0
|
%
|
|
6,571
|
|
|
8.1
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
77,216
|
|
|
100.0
|
%
|
|
86,214
|
|
|
100.0
|
%
|
|
74,756
|
|
|
100.0
|
%
|
|
81,534
|
|
|
100.0
|
%
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we own
approximately 34% of the common units as of December 31, 2016 and serve as the general
partner. The financial and operational data for the three months
and year ended December 31, 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 year ended
December 31, 2016 are included in CVR
Partners' press release dated February 16, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
84.9
|
|
|
$
|
66.0
|
|
|
$
|
356.3
|
|
|
$
|
289.2
|
|
|
Cost of materials and
other
|
21.5
|
|
|
9.5
|
|
|
93.7
|
|
|
65.2
|
|
|
Direct operating
expenses(1)
|
37.9
|
|
|
23.3
|
|
|
141.7
|
|
|
99.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
6.6
|
|
|
7.0
|
|
|
Depreciation and
amortization
|
17.2
|
|
|
7.2
|
|
|
58.2
|
|
|
28.4
|
|
|
Cost of
sales
|
76.6
|
|
|
40.0
|
|
|
300.2
|
|
|
199.7
|
|
|
Selling, general and
administrative expenses
|
7.3
|
|
|
5.6
|
|
|
29.3
|
|
|
20.8
|
|
|
Operating
income
|
1.0
|
|
|
20.4
|
|
|
26.8
|
|
|
68.7
|
|
|
Interest expense and
other financing costs
|
(15.8)
|
|
|
(1.8)
|
|
|
(48.6)
|
|
|
(7.0)
|
|
|
Gain (loss) on
extinguishment of debt
|
0.2
|
|
|
—
|
|
|
(4.9)
|
|
|
—
|
|
|
Other income,
net
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
Income (loss)
before income tax expense
|
(14.5)
|
|
|
18.7
|
|
|
(26.6)
|
|
|
62.0
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
Net income
(loss)
|
$
|
(14.5)
|
|
|
$
|
18.7
|
|
|
$
|
(26.9)
|
|
|
$
|
62.0
|
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
18.3
|
|
|
$
|
28.5
|
|
|
$
|
92.7
|
|
|
$
|
106.8
|
|
|
|
|
* See Use of
Non-GAAP Financial Measures below.
|
|
(1)
|
Direct operating
expenses for the three months and years ended December 31, 2016 and
2015 are shown exclusive of depreciation and amortization and major
scheduled turnaround expenses, which amounts are presented
separately below direct operating expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated sales
(thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
55.7
|
|
|
5.4
|
|
|
201.4
|
|
|
32.3
|
|
|
UAN
|
335.1
|
|
|
240.7
|
|
|
1,237.5
|
|
|
939.5
|
|
|
|
|
|
|
|
|
|
|
Consolidated product
pricing at gate (dollars per ton)(1):
|
|
|
|
|
|
|
|
|
Ammonia
|
$
|
352
|
|
|
$
|
479
|
|
|
$
|
376
|
|
|
$
|
521
|
|
|
UAN
|
$
|
147
|
|
|
$
|
221
|
|
|
$
|
177
|
|
|
$
|
247
|
|
|
|
|
|
|
|
|
|
|
Consolidated
production volume (thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia (gross
produced)(2)
|
207.6
|
|
|
116.1
|
|
|
693.5
|
|
|
385.4
|
|
|
Ammonia (net
available for sale)(2)(3)
|
62.6
|
|
|
6.1
|
|
|
183.6
|
|
|
37.3
|
|
|
UAN
|
330.7
|
|
|
270.5
|
|
|
1,192.6
|
|
|
928.6
|
|
|
|
|
|
|
|
|
|
|
Feedstock:
|
|
|
|
|
|
|
|
|
Petroleum coke
used in production (thousand tons)
|
129.4
|
|
|
134.1
|
|
|
513.7
|
|
|
469.9
|
|
|
Petroleum coke
used in production (dollars per ton)
|
$
|
18
|
|
|
$
|
23
|
|
|
$
|
15
|
|
|
$
|
25
|
|
|
Natural gas used
in production (thousands of MMBtus)
|
2,124.3
|
|
|
—
|
|
|
5,596.0
|
|
|
—
|
|
|
Natural gas used
in production (dollars per MMBtu)(4)
|
$
|
3.30
|
|
|
$
|
—
|
|
|
$
|
2.96
|
|
|
$
|
—
|
|
|
Natural gas in
cost of materials and other (thousands of MMBtus)
|
1,876.2
|
|
|
—
|
|
|
4,618.7
|
|
|
—
|
|
|
Natural gas in
cost of materials and other (dollars per MMBtus)(4)
|
$
|
3.15
|
|
|
$
|
—
|
|
|
$
|
2.87
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Coffeyville Facility
on-stream factor(5):
|
|
|
|
|
|
|
|
|
Gasification
|
96.1
|
%
|
|
99.3
|
%
|
|
96.9
|
%
|
|
90.2
|
%
|
|
Ammonia
|
91.1
|
%
|
|
98.8
|
%
|
|
94.9
|
%
|
|
87.5
|
%
|
|
UAN
|
93.1
|
%
|
|
98.3
|
%
|
|
93.1
|
%
|
|
87.3
|
%
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility
on-stream factors(5):
|
|
|
|
|
|
|
|
|
Ammonia
|
99.7
|
%
|
|
—
|
%
|
|
87.7
|
%
|
|
—
|
%
|
|
UAN
|
99.8
|
%
|
|
—
|
%
|
|
87.3
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
313
|
|
|
$
|
460
|
|
|
$
|
356
|
|
|
$
|
510
|
|
|
Ammonia — Corn belt
(dollars per ton)
|
$
|
360
|
|
|
$
|
518
|
|
|
$
|
416
|
|
|
$
|
566
|
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
175
|
|
|
$
|
250
|
|
|
$
|
208
|
|
|
$
|
284
|
|
|
Natural gas NYMEX
(dollars per MMBtu)
|
$
|
3.18
|
|
|
$
|
2.23
|
|
|
$
|
2.55
|
|
|
$
|
2.63
|
|
|
|
|
|
|
(1)
|
Product pricing at
gate 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 2,000 and 0 tons of ammonia during the three months
ended December 31, 2016 and 2015, respectively. The Nitrogen
Fertilizer segment acquired approximately 10,000 and 29,300 tons of
ammonia during the years ended December 31, 2016 and 2015,
respectively.
|
|
|
|
(4)
|
The cost per MMBtu
excludes derivative activity, when applicable. The impact of
natural gas derivative activity during the periods presented 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 included as a measure of
operating efficiency.
|
Coffeyville Facility
Excluding the impact of the Linde
air separation unit outages at the Coffeyville fertilizer facility, the on-stream
factors for the three months ended December
31, 2015 would have been 100.0% for gasification, 100.0% for
ammonia and 99.9% for UAN.
Excluding the impact of the full
facility turnaround and the Linde air separation unit outages, the
on-stream factors for the year ended December 31, 2015 would have been 99.9% for
gasification, 97.7% for ammonia and 97.6% for UAN.
East Dubuque Facility
Excluding the impact of the full
facility turnaround at the East
Dubuque fertilizer facility, the on-stream factors at the
East Dubuque fertilizer facility
would have been 97.8% for ammonia and 97.1% for UAN for the
post-acquisition period ended December 31, 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 (loss) is not a recognized term under GAAP
and should not be substituted for net income (loss) 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 (loss)
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 (loss) per diluted
share represents adjusted net income (loss) divided by
weighted-average diluted shares outstanding. Adjusted net income
(loss) represents net income (loss), as adjusted, that is
attributable to CVR Energy stockholders.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss):
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax expense (benefit)
|
$
|
(28.1)
|
|
|
$
|
(98.6)
|
|
|
$
|
(10.9)
|
|
|
$
|
382.3
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
FIFO impact (favorable) unfavorable
|
(22.4)
|
|
|
26.6
|
|
|
(52.1)
|
|
|
60.3
|
|
|
Share-based compensation(1)
|
—
|
|
|
3.7
|
|
|
—
|
|
|
12.8
|
|
|
Major scheduled turnaround expenses
|
—
|
|
|
84.9
|
|
|
38.1
|
|
|
109.2
|
|
|
(Gain) loss on derivatives, net
|
14.6
|
|
|
(23.6)
|
|
|
19.4
|
|
|
28.6
|
|
|
Current period settlement on derivative contracts(2)
|
1.2
|
|
|
8.1
|
|
|
36.4
|
|
|
(26.0)
|
|
|
Flood insurance recovery(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
(Gain) loss on extinguishment of debt(4)
|
(0.2)
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
Expenses associated with the East Dubuque Merger(5)
|
—
|
|
|
0.8
|
|
|
3.1
|
|
|
2.3
|
|
|
Insurance recovery - Business interruption(6)
|
—
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
Adjusted net income (loss) before income tax expense and
noncontrolling interest
|
(34.9)
|
|
|
1.9
|
|
|
36.8
|
|
|
542.2
|
|
|
Adjusted net income (loss) attributed to noncontrolling
interest
|
15.5
|
|
|
(0.3)
|
|
|
(4.1)
|
|
|
(179.8)
|
|
|
Income tax benefit (expense), as adjusted
|
23.8
|
|
|
(5.9)
|
|
|
8.8
|
|
|
(127.3)
|
|
|
Adjusted net income
(loss)
|
$
|
4.4
|
|
|
$
|
(4.3)
|
|
|
$
|
41.5
|
|
|
$
|
235.1
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per diluted share
|
$
|
0.05
|
|
|
$
|
(0.05)
|
|
|
$
|
0.48
|
|
|
$
|
2.71
|
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between the Petroleum segment's net
sales and cost of materials and other. 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 materials and other at which they
are able to sell refined products. Each of the components used in
this calculation (net sales and cost of materials and other) 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 materials and other
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 materials and other (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.
The calculation of refining margin and refining margin adjusted
for FIFO impact for the three months and years ended
December 31, 2016 and 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum Segment
Operating Data
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Net Sales
|
$
|
1,269.4
|
|
|
$
|
948.3
|
|
|
$
|
4,431.3
|
|
|
$
|
5,161.9
|
|
|
Cost of materials and
other
|
1,107.5
|
|
|
842.8
|
|
|
3,759.2
|
|
|
4,143.6
|
|
|
Direct operating
expenses (exclusive of depreciation and amortization as reflected
below)
|
94.7
|
|
|
103.8
|
|
|
361.9
|
|
|
376.3
|
|
|
Major schedule
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
32.6
|
|
|
31.5
|
|
|
126.3
|
|
|
128.0
|
|
|
Gross
profit
|
34.6
|
|
|
(114.7)
|
|
|
152.4
|
|
|
439.1
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Direct operating
expenses (exclusive of depreciation and amortization as reflected
below)
|
94.7
|
|
|
103.8
|
|
|
361.9
|
|
|
376.3
|
|
|
Major schedule
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
32.6
|
|
|
31.5
|
|
|
126.3
|
|
|
128.0
|
|
|
Refining
Margin
|
161.9
|
|
|
105.5
|
|
|
672.1
|
|
|
1,018.3
|
|
|
FIFO impact,
(favorable) unfavorable
|
(22.4)
|
|
|
26.6
|
|
|
(52.1)
|
|
|
60.3
|
|
|
Refining Margin
adjusted for FIFO impact
|
$
|
139.5
|
|
|
$
|
132.1
|
|
|
$
|
620.0
|
|
|
$
|
1,078.6
|
|
The calculation of refining margin per crude oil throughput
barrel and refining margin adjusted for FIFO impact per crude oil
throughput barrel for the three months and years ended
December 31, 2016 and 2015 is as follows:
|
|
Petroleum Segment
Operating Data
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Total crude oil
throughput barrels per day
|
|
207,422
|
|
|
|
160,139
|
|
|
|
198,042
|
|
|
|
193,077
|
|
|
Days in the
period
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Total crude oil
throughput barrels
|
19,082,824
|
|
|
14,732,788
|
|
|
72,483,372
|
|
|
70,473,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Refining
Margin
|
$
|
161.9
|
|
|
$
|
105.5
|
|
|
$
|
672.1
|
|
|
$
|
1,018.3
|
|
|
Divided by: crude oil
throughput barrels
|
19.1
|
|
|
14.7
|
|
|
72.5
|
|
|
70.5
|
|
|
Refining Margin per
crude oil throughput barrel
|
$
|
8.49
|
|
|
$
|
7.16
|
|
|
$
|
9.27
|
|
|
$
|
14.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Refining Margin
adjusted for FIFO impact
|
$
|
139.5
|
|
|
$
|
132.1
|
|
|
$
|
620.0
|
|
|
$
|
1,078.6
|
|
|
Divided by: crude oil
throughput barrels
|
19.1
|
|
|
14.7
|
|
|
72.5
|
|
|
70.5
|
|
|
Refining Margin
adjusted for FIFO impact per crude oil throughput barrel
|
$
|
7.32
|
|
|
$
|
8.96
|
|
|
$
|
8.55
|
|
|
$
|
15.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Total crude oil
throughput barrels per day
|
|
132,351
|
|
|
|
77,224
|
|
|
|
124,169
|
|
|
|
113,305
|
|
|
Days in the
period
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Total crude oil
throughput barrels
|
12,176,292
|
|
|
7,104,608
|
|
|
45,445,854
|
|
|
41,356,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Refining
Margin
|
$
|
104.1
|
|
|
$
|
32.1
|
|
|
$
|
435.0
|
|
|
$
|
594.5
|
|
|
Divided by: crude oil
throughput barrels
|
12.2
|
|
|
7.1
|
|
|
45.4
|
|
|
41.4
|
|
|
Refining Margin per
crude oil throughput barrel
|
$
|
8.55
|
|
|
$
|
4.52
|
|
|
$
|
9.57
|
|
|
$
|
14.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Refining Margin
adjusted for FIFO impact
|
$
|
88.7
|
|
|
$
|
49.5
|
|
|
$
|
397.2
|
|
|
$
|
632.5
|
|
|
Divided by: crude oil
throughput barrels
|
12.2
|
|
|
7.1
|
|
|
45.4
|
|
|
41.4
|
|
|
Refining Margin
adjusted for FIFO impact per crude oil throughput barrel
|
$
|
7.29
|
|
|
$
|
6.97
|
|
|
$
|
8.74
|
|
|
$
|
15.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wynnewood
Refinery
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Total crude oil
throughput barrels per day
|
|
75,071
|
|
|
|
82,915
|
|
|
|
73,873
|
|
|
|
79,772
|
|
|
Days in the
period
|
92
|
|
|
92
|
|
|
366
|
|
|
365
|
|
|
Total crude oil
throughput barrels
|
6,906,532
|
|
|
7,628,180
|
|
|
27,037,518
|
|
|
29,116,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Refining
Margin
|
$
|
56.7
|
|
|
$
|
72.8
|
|
|
$
|
232.6
|
|
|
$
|
420.6
|
|
|
Divided by: crude oil
throughput barrels
|
6.9
|
|
|
7.6
|
|
|
27.0
|
|
|
29.1
|
|
|
Refining Margin per
crude oil throughput barrel
|
$
|
8.20
|
|
|
$
|
9.54
|
|
|
$
|
8.60
|
|
|
$
|
14.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Refining Margin
adjusted for FIFO impact
|
$
|
49.7
|
|
|
$
|
82.0
|
|
|
$
|
218.4
|
|
|
$
|
442.9
|
|
|
Divided by: crude oil
throughput barrels
|
6.9
|
|
|
7.6
|
|
|
27.0
|
|
|
29.1
|
|
|
Refining Margin
adjusted for FIFO impact per crude oil throughput barrel
|
$
|
7.19
|
|
|
$
|
10.74
|
|
|
$
|
8.07
|
|
|
$
|
15.21
|
|
Gross profit (loss) excluding flood insurance recovery is
calculated as the difference between the Petroleum segment's net
sales, cost of materials and other, direct operating expenses
(exclusive of depreciation and amortization), major scheduled
turnaround expenses and depreciation and amortization. Gross
profit (loss) excluding flood insurance recovery per crude
throughput barrel is calculated as gross profit (loss) excluding
flood insurance recovery as derived above divided by the
refineries' crude oil throughput volumes for the respective periods
presented. Gross profit (loss) excluding flood insurance recovery
is a non-GAAP measure that should not be substituted for operating
income (loss). 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)
excluding flood insurance recovery may differ from similar
calculations of other companies in the industry, thereby limiting
its usefulness as a comparative measure. The calculation of gross
profit (loss) excluding flood insurance recovery and gross profit
(loss) excluding flood insurance recovery per crude oil throughput
barrel for the three months and years ended December 31, 2016
and 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Operating Data
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Net Sales
|
$
|
1,269.4
|
|
|
$
|
948.3
|
|
|
$
|
4,431.3
|
|
|
$
|
5,161.9
|
|
|
Cost of materials and
other
|
1,107.5
|
|
|
842.8
|
|
|
3,759.2
|
|
|
4,143.6
|
|
|
Direct operating
expenses (exclusive of depreciation and amortization as reflected
below)
|
94.7
|
|
|
188.7
|
|
|
393.4
|
|
|
478.5
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
32.6
|
|
|
31.5
|
|
|
126.3
|
|
|
128.0
|
|
|
Gross profit
(loss)
|
34.6
|
|
|
(114.7)
|
|
|
152.4
|
|
|
439.1
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Gross profit (loss)
excluding flood insurance recovery
|
$
|
34.6
|
|
|
$
|
(114.7)
|
|
|
$
|
152.4
|
|
|
$
|
411.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Gross profit (loss)
excluding flood insurance recovery
|
$
|
34.6
|
|
|
$
|
(114.7)
|
|
|
$
|
152.4
|
|
|
$
|
411.8
|
|
|
Divided by: Crude oil
throughput barrels
|
19.1
|
|
|
14.7
|
|
|
72.5
|
|
|
70.5
|
|
|
Gross profit (loss)
excluding flood insurance recovery per crude oil throughput
barrel
|
$
|
1.81
|
|
|
$
|
(7.80)
|
|
|
$
|
2.10
|
|
|
$
|
5.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Net Sales
|
$
|
854.7
|
|
|
$
|
522.6
|
|
|
$
|
2,948.9
|
|
|
$
|
3,220.6
|
|
|
Cost of materials and
other
|
750.6
|
|
|
490.5
|
|
|
2,513.9
|
|
|
2,626.1
|
|
|
Direct operating
expenses (exclusive of depreciation and amortization as reflected
below)
|
52.0
|
|
|
53.5
|
|
|
196.4
|
|
|
209.1
|
|
|
Major schedule
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
18.4
|
|
|
17.5
|
|
|
69.7
|
|
|
72.1
|
|
|
Gross profit
(loss)
|
33.7
|
|
|
(123.8)
|
|
|
137.4
|
|
|
238.4
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Gross profit (loss)
excluding flood insurance recovery
|
$
|
33.7
|
|
|
$
|
(123.8)
|
|
|
$
|
137.4
|
|
|
$
|
211.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except for $ per barrel data)
|
|
Gross profit (loss)
excluding flood insurance recovery
|
$
|
33.7
|
|
|
$
|
(123.8)
|
|
|
$
|
137.4
|
|
|
$
|
211.1
|
|
|
Divided by: Crude oil
throughput barrels
|
12.2
|
|
|
7.1
|
|
|
45.4
|
|
|
41.4
|
|
|
Gross profit (loss)
excluding flood insurance recovery per crude oil throughput
barrel
|
$
|
2.76
|
|
|
$
|
(17.42)
|
|
|
$
|
3.03
|
|
|
$
|
5.11
|
|
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss)
attributable to CVR Energy stockholders before consolidated (i)
interest expense and other financing costs, net of interest income,
(ii) income tax expense (benefit), (iii) depreciation and
amortization, less the portion of these adjustments attributable to
non-controlling interest. Adjusted EBITDA represents EBITDA
adjusted for consolidated (i) FIFO impact (favorable) unfavorable;
(ii) loss on extinguishment of debt; (iii) major scheduled
turnaround expenses (that many of our competitors capitalize and
thereby exclude form their measures of EBITDA and adjusted EBITDA);
(iv) (gain) loss on derivatives, net; (v) current period
settlements on derivative contracts; (vi) flood insurance recovery;
(vii) business interruption insurance recovery and (viii)
transaction expenses associated with the East Dubuque Merger, less
the portion of these adjustments attributable to non-controlling
interest. 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 and Adjusted
EBITDA represent EBITDA and Adjusted EBITDA that is attributable to
CVR Energy stockholders.
EBITDA for the quarter and year ended December 31, 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 year ended December 31,
2015 without adjusting for share-based compensation expense
in order to provide a comparison to Adjusted EBITDA for the quarter
and year ended December 31, 2016.
A reconciliation of net income attributable to CVR Energy
stockholders to EBITDA and EBITDA to Adjusted EBITDA for the
quarter and year ended December 31,
2016 and 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
7.1
|
|
|
$
|
(45.0)
|
|
|
$
|
24.7
|
|
|
$
|
169.6
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
26.9
|
|
|
11.7
|
|
|
83.2
|
|
|
47.4
|
|
|
Income tax expense
(benefit)
|
(22.1)
|
|
|
(20.7)
|
|
|
(19.8)
|
|
|
84.5
|
|
|
Depreciation and
amortization
|
52.3
|
|
|
40.9
|
|
|
193.1
|
|
|
164.1
|
|
|
Adjustments
attributable to noncontrolling interest
|
(37.0)
|
|
|
(18.7)
|
|
|
(127.3)
|
|
|
(75.2)
|
|
|
EBITDA
|
27.2
|
|
|
(31.8)
|
|
|
153.9
|
|
|
390.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
(22.4)
|
|
|
26.6
|
|
|
(52.1)
|
|
|
60.3
|
|
|
Share-based
compensation(1)
|
—
|
|
|
3.7
|
|
|
—
|
|
|
12.8
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
84.9
|
|
|
38.1
|
|
|
109.2
|
|
|
(Gain) loss on
derivatives, net
|
14.6
|
|
|
(23.6)
|
|
|
19.4
|
|
|
28.6
|
|
|
Current period
settlements on derivative contracts(2)
|
1.2
|
|
|
8.1
|
|
|
36.4
|
|
|
(26.0)
|
|
|
Flood insurance
recovery(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
(Gain) loss on
extinguishment of debt(4)
|
(0.2)
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
Expenses associated
with the East Dubuque Merger(5)
|
—
|
|
|
0.8
|
|
|
3.1
|
|
|
2.3
|
|
|
Insurance recovery -
business interruption(6)
|
—
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
Adjustments
attributable to noncontrolling interest
|
2.4
|
|
|
(33.1)
|
|
|
(20.0)
|
|
|
(51.5)
|
|
|
Adjusted
EBITDA
|
$
|
22.8
|
|
|
$
|
35.6
|
|
|
$
|
181.6
|
|
|
$
|
498.8
|
|
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, as applicable (i) FIFO impact (favorable)
unfavorable; (ii) share-based compensation, non-cash; (iii) loss on
extinguishment of debt; (iv) major scheduled turnaround expenses
(that many of our competitors capitalize and thereby exclude from
their measures of EBITDA and adjusted EBITDA); (v) (gain) loss on
derivatives, net; (vi) current period settlements on derivative
contracts; (vii) flood insurance recovery; (viii) transaction
expenses associated with the East Dubuque Merger and (ix) business
interruption insurance recovery. 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 three months and years ended December 31, 2016 and 2015 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Petroleum:
|
|
|
|
|
|
|
|
|
Petroleum net income
(loss)
|
$
|
(10.7)
|
|
|
$
|
(122.2)
|
|
|
$
|
15.3
|
|
|
$
|
291.2
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
11.6
|
|
|
10.4
|
|
|
43.3
|
|
|
42.2
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
33.4
|
|
|
32.1
|
|
|
129.0
|
|
|
130.2
|
|
|
Petroleum
EBITDA
|
34.3
|
|
|
(79.7)
|
|
|
187.6
|
|
|
463.6
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
(22.4)
|
|
|
26.6
|
|
|
(52.1)
|
|
|
60.3
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.6
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
84.9
|
|
|
31.5
|
|
|
102.2
|
|
|
(Gain) loss on
derivatives, net
|
14.6
|
|
|
(23.6)
|
|
|
19.4
|
|
|
28.6
|
|
|
Current period
settlements on derivative contracts(2)
|
1.2
|
|
|
8.1
|
|
|
36.4
|
|
|
(26.0)
|
|
|
Flood insurance
recovery(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Adjusted Petroleum
EBITDA
|
$
|
27.7
|
|
|
$
|
16.4
|
|
|
$
|
222.8
|
|
|
$
|
602.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer
net income (loss)
|
$
|
(14.5)
|
|
|
$
|
18.7
|
|
|
$
|
(26.9)
|
|
|
$
|
62.0
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
15.8
|
|
|
1.8
|
|
|
48.6
|
|
|
7.0
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
Depreciation and
amortization
|
17.2
|
|
|
7.2
|
|
|
58.2
|
|
|
28.4
|
|
|
Nitrogen Fertilizer
EBITDA
|
18.5
|
|
|
27.7
|
|
|
80.2
|
|
|
97.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
6.6
|
|
|
7.0
|
|
|
(Gain) loss on
extinguishment of debt(4)
|
(0.2)
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
Expenses associated
with the East Dubuque Merger(5)
|
—
|
|
|
0.8
|
|
|
3.1
|
|
|
2.3
|
|
|
Less:
|
|
|
|
|
|
|
|
|
Insurance recovery -
business interruption(6)
|
—
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
18.3
|
|
|
$
|
28.5
|
|
|
$
|
92.7
|
|
|
$
|
106.8
|
|
|
|
|
|
|
|
|
(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
(loss) and Adjusted EBITDA for the three months ended December 31,
2015 would have been $(6.6) million and $31.9 million,
respectively, without adjusting for share-based compensation
expense of $3.7 million. Additionally, Adjusted net income and
Adjusted EBITDA for the year ended December 31, 2015 would have
been $227.3 million and $486.0 million, respectively, without
adjusting for share-based compensation expense of $12.8
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. CVR Partners incurred
legal and other professional fees and other merger related expenses
that are referred to herein as transaction expenses associated with
the East Dubuque Merger, which are included in selling, general and
administrative expenses.
|
|
|
|
(6)
|
CVR Partners received
a business interruption insurance recovery of $2.1 million during
the third quarter of 2016.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cvr-energy-reports-2016-fourth-quarter-and-full-year-results-and-announces-cash-dividend-of-50-cents-300408745.html
SOURCE CVR Energy, Inc.