SUGAR LAND, Texas, April 27, 2017 /PRNewswire/ -- CVR Energy,
Inc. (NYSE: CVI) today announced net income of $22.2 million, or 26
cents per diluted share, on net sales of $1,507.1 million for the first quarter of 2017,
compared to a net loss of $16.2
million, or 19 cents per
diluted share, on net sales of $905.5
million for the 2016 first quarter. First quarter 2017
adjusted EBITDA, a non-GAAP financial measure, was $80.4 million, compared to first quarter 2016
adjusted EBITDA of $36.2 million.
"For the 2017 first quarter, CVR Partners reported strong
operational performance with high on-stream rates at both its
Coffeyville, Kansas, and
East Dubuque, Illinois, fertilizer
facilities," said Jack Lipinski, CVR
Energy's chief executive officer.
"CVR Refining's Coffeyville and
Wynnewood, Oklahoma, refineries
performed exceptionally well during the 2017 first quarter, posting
a quarterly record for combined crude oil throughput of 214,369
barrels per day (bpd)," Lipinski said. "In addition, the joint
venture between subsidiaries of CVR Refining and Velocity Midstream
Partners recently completed construction of the crude oil pipeline
connecting the Wynnewood refinery
with the SCOOP play in central Oklahoma. The pipeline commenced operations in
mid-April.
"As I mentioned in the CVR Refining first quarter news release,
the Renewable Fuel Standard continues to be a disaster searching
for a solution," he continued. "The wild volatility in the market
for Renewable Identification Numbers (RINs) during the first
quarter once again proves that RINs are not fundamentally priced
but are in fact manipulated. The cost to produce a D-6 ethanol RIN
is currently between 6 cents and 10
cents, yet it trades 40 cents
higher. This is the price manipulation in the market that must stop
and CVR Refining supports the efforts of the many refiners and
independent gas station dealers to reform this misguided
regulation."
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
first quarter 2017 operating income of $66.0
million on net sales of $1,423.5
million, compared to an operating loss of $56.0 million on net sales of $834.0 million in the first quarter of 2016.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $11.54 in the 2017 first quarter, compared to
$7.19 during the same period in 2016.
Direct operating expenses (exclusive of depreciation and
amortization), including major scheduled turnaround expenses, per
crude oil throughput barrel, for the 2017 first quarter were
$5.29, compared to $7.02 in the first quarter of 2016.
First quarter 2017 throughputs of crude oil and all other
feedstocks and blendstocks totaled 228,612 bpd, compared to first
quarter 2016 throughputs of crude oil and all other feedstocks and
blendstocks of 195,859 bpd.
Nitrogen Fertilizers Business
The fertilizer business, which is operated by CVR Partners and
includes the Coffeyville and
East Dubuque fertilizer
facilities, reported first quarter 2017 operating income of
$5.3 million on net sales of
$85.3 million, compared to operating
income of $19.7 million on net sales
of $73.1 million for the first
quarter of 2016.
For the first quarter of 2017, consolidated average realized
gate prices for UAN and ammonia were $160 per ton and $308 per ton, respectively. Average realized gate
prices for UAN and ammonia for the Coffeyville facility were $209 per ton and $367 per ton, respectively, for the same period
in 2016.
CVR Partners' fertilizer facilities produced a combined 219,200
tons of ammonia during the first quarter of 2017, of which 80,000
net tons were available for sale while the rest was upgraded to
other fertilizer products, including 341,900 tons of UAN. In the
2016 first quarter, the Coffeyville facility produced 113,700 tons of
ammonia, of which 15,100 net tons were available for sale while the
remainder was upgraded to 248,200 tons of UAN.
Cash, Debt and Dividend
Consolidated cash and cash equivalents was $803.6 million at March
31, 2017. Consolidated total debt was $1,165.2 million at March
31, 2017. The company had no debt exclusive of CVR
Refining's and CVR Partners' debt.
CVR Energy also announced a first quarter 2017 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
May 15, 2017, to stockholders of
record on May 8, 2017.
Today, CVR Partners announced a 2017 first quarter cash
distribution of 2 cents per common
unit. CVR Refining announced that it will not pay a cash
distribution for the 2017 first quarter.
First Quarter 2017 Earnings Conference Call
CVR Energy previously announced that it will host its first
quarter 2017 Earnings Conference Call for analysts and investors on
Thursday, April 27, 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/1003/20616. 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/1003/20616. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13659740.
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
CVR Energy, Inc.
Financial and Operational Data (all information in this
release is unaudited other than the balance sheet data as of
December 31, 2016).
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2017
|
|
2016
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
|
|
|
|
Net sales
|
$
|
1,507.1
|
|
|
$
|
905.5
|
|
Operating costs and
expenses:
|
|
|
|
Cost of materials and
other
|
1,221.2
|
|
|
736.8
|
|
Direct operating
expenses(1)
|
138.1
|
|
|
141.4
|
|
Depreciation and
amortization
|
48.6
|
|
|
37.9
|
|
Cost of
sales
|
1,407.9
|
|
|
916.1
|
|
Selling, general and
administrative expenses(1)
|
29.1
|
|
|
27.2
|
|
Depreciation and
amortization
|
2.5
|
|
|
2.1
|
|
Operating income
(loss)
|
67.6
|
|
|
(39.9)
|
|
Interest expense and
other financing costs
|
(27.0)
|
|
|
(12.1)
|
|
Interest
income
|
0.2
|
|
|
0.2
|
|
Gain (loss) on
derivatives, net
|
12.2
|
|
|
(1.2)
|
|
Other income,
net
|
—
|
|
|
0.3
|
|
Income (loss) before
income tax expense (benefit)
|
53.0
|
|
|
(52.7)
|
|
Income tax expense
(benefit)
|
14.8
|
|
|
(21.8)
|
|
Net income
(loss)
|
38.2
|
|
|
(30.9)
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
16.0
|
|
|
(14.7)
|
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
22.2
|
|
|
$
|
(16.2)
|
|
|
|
|
|
Basic and diluted
earnings (loss) per share
|
$
|
0.26
|
|
|
$
|
(0.19)
|
|
Dividends declared
per share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
80.4
|
|
|
$
|
36.2
|
|
Adjusted net
income*
|
$
|
23.1
|
|
|
$
|
8.4
|
|
Adjusted net income
per diluted share*
|
$
|
0.27
|
|
|
$
|
0.10
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic and diluted
|
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 ended March 31, 2017 and 2016 are shown exclusive of
depreciation and amortization, which amounts are presented
separately below direct operating expenses and selling, general and
administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
As of March
31, 2017
|
|
As of
December 31,
2016
|
|
|
|
(audited)
|
|
(in
millions)
|
Balance Sheet
Data:
|
|
|
|
Cash and cash
equivalents
|
$
|
803.6
|
|
|
$
|
735.8
|
|
Working
capital
|
787.9
|
|
|
749.6
|
|
Total
assets
|
4,053.2
|
|
|
4,050.2
|
|
Total debt, including
current portion
|
1,165.2
|
|
|
1,164.6
|
|
Total CVR
stockholders' equity
|
836.9
|
|
|
858.1
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Cash Flow
Data:
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
Operating
activities
|
$
|
137.2
|
|
|
$
|
21.6
|
|
Investing
activities
|
(25.6)
|
|
|
(51.7)
|
|
Financing
activities
|
(43.8)
|
|
|
(53.2)
|
|
Net cash
flow
|
$
|
67.8
|
|
|
$
|
(83.3)
|
|
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 three months ended
March 31, 2017 are included in CVR Refining's press release
dated April 27, 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 March 31, 2017 and
serve as the general partner. On April 1,
2016, CVR Partners completed the merger (the "East Dubuque
Merger") whereby CVR Partners acquired a nitrogen fertilizer
manufacturing facility located in East
Dubuque, Illinois (the "East Dubuque Facility"). The
Nitrogen Fertilizer segment consists of a nitrogen fertilizer
manufacturing facility located in Coffeyville, Kansas, and the East Dubuque
Facility beginning on April 1, 2016,
the date of the closing of the acquisition. Detailed operating
results for the Nitrogen Fertilizer segment for the three months
ended March 31, 2017 are included in CVR Partners' press
release dated April 27, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
Three Months Ended
March 31, 2017
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,423.5
|
|
|
$
|
85.3
|
|
|
$
|
(1.7)
|
|
|
$
|
1,507.1
|
|
Cost of materials and
other
|
1,201.3
|
|
|
21.8
|
|
|
(1.9)
|
|
|
1,221.2
|
|
Direct operating
expenses (1)
|
89.2
|
|
|
35.9
|
|
|
0.1
|
|
|
125.2
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
—
|
|
|
—
|
|
|
12.9
|
|
Selling, general and
administrative
|
20.0
|
|
|
6.9
|
|
|
2.2
|
|
|
29.1
|
|
Depreciation and
amortization
|
34.1
|
|
|
15.4
|
|
|
1.6
|
|
|
51.1
|
|
Operating income
(loss)
|
$
|
66.0
|
|
|
$
|
5.3
|
|
|
$
|
(3.7)
|
|
|
$
|
67.6
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
19.6
|
|
|
$
|
4.1
|
|
|
$
|
0.5
|
|
|
$
|
24.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
Three Months Ended
March 31, 2016
|
|
|
|
|
|
|
|
Net sales
|
$
|
834.0
|
|
|
$
|
73.1
|
|
|
$
|
(1.6)
|
|
|
$
|
905.5
|
|
Cost of materials and
other
|
722.3
|
|
|
16.3
|
|
|
(1.8)
|
|
|
736.8
|
|
Direct operating
expenses (1)
|
88.3
|
|
|
23.7
|
|
|
—
|
|
|
112.0
|
|
Major scheduled
turnaround expenses
|
29.4
|
|
|
—
|
|
|
—
|
|
|
29.4
|
|
Selling, general and
administrative
|
18.5
|
|
|
6.4
|
|
|
2.3
|
|
|
27.2
|
|
Depreciation and
amortization
|
31.5
|
|
|
7.0
|
|
|
1.5
|
|
|
40.0
|
|
Operating income
(loss)
|
$
|
(56.0)
|
|
|
$
|
19.7
|
|
|
$
|
(3.6)
|
|
|
$
|
(39.9)
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
44.0
|
|
|
$
|
1.7
|
|
|
$
|
1.8
|
|
|
$
|
47.5
|
|
|
|
|
|
|
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
March 31,
2017
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
408.8
|
|
|
$
|
81.5
|
|
|
$
|
313.3
|
|
|
$
|
803.6
|
|
Total
assets
|
2,371.8
|
|
|
1,328.4
|
|
|
353.0
|
|
|
4,053.2
|
|
Total debt, including
current portion
|
541.4
|
|
|
623.8
|
|
|
—
|
|
|
1,165.2
|
|
|
|
|
|
|
|
|
|
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
|
|
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 three months ended
March 31, 2017 are included in CVR Refining's press release
dated April 27, 2017.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
Net sales
|
$
|
1,423.5
|
|
|
$
|
834.0
|
|
Operating costs and
expenses:
|
|
|
|
Cost of materials and
other
|
1,201.3
|
|
|
722.3
|
|
Direct operating
expenses(1)
|
89.2
|
|
|
88.3
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
29.4
|
|
Depreciation and
amortization
|
33.3
|
|
|
30.9
|
|
Cost of
sales
|
1,336.7
|
|
|
870.9
|
|
Selling, general and
administrative expenses(1)
|
20.0
|
|
|
18.5
|
|
Depreciation and
amortization
|
0.8
|
|
|
0.6
|
|
Operating income
(loss)
|
66.0
|
|
|
(56.0)
|
|
Interest expense and
other financing costs
|
(11.2)
|
|
|
(10.8)
|
|
Gain (loss) on
derivatives, net
|
12.2
|
|
|
(1.2)
|
|
Income (loss) before
income tax expense
|
67.0
|
|
|
(68.0)
|
|
Income tax
expense
|
—
|
|
|
—
|
|
Net income
(loss)
|
$
|
67.0
|
|
|
$
|
(68.0)
|
|
|
|
|
|
Gross profit
(loss)
|
$
|
86.8
|
|
|
$
|
(36.9)
|
|
Refining
margin*
|
$
|
222.2
|
|
|
$
|
111.7
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
222.5
|
|
|
$
|
120.5
|
|
Adjusted Petroleum
EBITDA*
|
$
|
114.5
|
|
|
$
|
35.1
|
|
______________________________
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
(1)
|
Direct operating
expense and selling, general and administrative expenses for the
three months ended March 31, 2017 and 2016 are shown exclusive of
depreciation and amortization and major scheduled turnaround
expenses, which amounts are presented separately below direct
operating expenses and selling, general and administrative
expenses.
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(dollars per
barrel)
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
Gross profit
(loss)
|
$
|
4.50
|
|
|
$
|
(2.20)
|
|
Refining
margin*
|
11.52
|
|
|
6.67
|
|
FIFO impact,
unfavorable
|
0.02
|
|
|
0.52
|
|
Refining margin
adjusted for FIFO impact*
|
11.54
|
|
|
7.19
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
5.29
|
|
|
7.02
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.63
|
|
|
5.27
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
4.97
|
|
|
6.40
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
4.34
|
|
|
$
|
4.80
|
|
Barrels sold (barrels
per day)
|
228,522
|
|
|
201,970
|
|
______________________________
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
Petroleum Segment
Summary
|
2017
|
|
2016
|
Refining
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
Sweet
|
197,853
|
|
|
86.6
|
%
|
|
170,728
|
|
|
87.2
|
%
|
Medium
|
—
|
|
|
—
|
%
|
|
1,513
|
|
|
0.8
|
%
|
Heavy sour
|
16,516
|
|
|
7.2
|
%
|
|
11,914
|
|
|
6.0
|
%
|
Total crude oil
throughput
|
214,369
|
|
|
93.8
|
%
|
|
184,155
|
|
|
94.0
|
%
|
All other feedstocks
and blendstocks
|
14,243
|
|
|
6.2
|
%
|
|
11,704
|
|
|
6.0
|
%
|
Total
throughput
|
228,612
|
|
|
100.0
|
%
|
|
195,859
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
Gasoline
|
118,955
|
|
|
51.9
|
%
|
|
105,878
|
|
|
54.2
|
%
|
Distillate
|
89,907
|
|
|
39.2
|
%
|
|
77,996
|
|
|
39.9
|
%
|
Other (excluding
internally produced fuel)
|
20,298
|
|
|
8.9
|
%
|
|
11,519
|
|
|
5.9
|
%
|
Total refining
production (excluding internally produced fuel)
|
229,160
|
|
|
100.0
|
%
|
|
195,393
|
|
|
100.0
|
%
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.54
|
|
|
|
|
$
|
1.04
|
|
|
|
Distillate
|
1.58
|
|
|
|
|
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Market Indicators
(dollars per barrel):
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
51.78
|
|
|
$
|
33.63
|
|
Crude Oil
Differentials:
|
|
|
|
WTI less WTS
(light/medium sour)
|
1.42
|
|
|
0.13
|
|
WTI less WCS (heavy
sour)
|
13.77
|
|
|
13.62
|
|
NYMEX Crack
Spreads:
|
|
|
|
Gasoline
|
14.68
|
|
|
15.84
|
|
Heating
Oil
|
15.54
|
|
|
11.91
|
|
NYMEX 2-1-1 Crack
Spread
|
15.11
|
|
|
13.88
|
|
PADD II Group 3
Basis:
|
|
|
|
Gasoline
|
(1.96)
|
|
|
(5.88)
|
|
Ultra Low Sulfur
Diesel
|
(1.58)
|
|
|
(1.01)
|
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
Gasoline
|
12.71
|
|
|
9.97
|
|
Ultra Low Sulfur
Diesel
|
13.96
|
|
|
10.90
|
|
PADD II Group 3
2-1-1
|
13.34
|
|
|
10.43
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except operating statistics)
|
Coffeyville
Refinery Financial Results:
|
|
|
|
Net sales
|
$
|
951.3
|
|
|
$
|
528.0
|
|
Cost of materials and
other
|
808.4
|
|
|
462.7
|
|
Direct operating
expenses(1)
|
50.7
|
|
|
47.6
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
29.4
|
|
Depreciation and
amortization
|
19.1
|
|
|
16.8
|
|
Gross profit
(loss)
|
73.1
|
|
|
(28.5)
|
|
Add:
|
|
|
|
Direct operating
expenses(1)
|
50.7
|
|
|
47.6
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
29.4
|
|
Depreciation and
amortization
|
19.1
|
|
|
16.8
|
|
Refining
margin*
|
142.9
|
|
|
65.3
|
|
FIFO impact,
unfavorable
|
1.5
|
|
|
3.9
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
144.4
|
|
|
$
|
69.2
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
Gross profit
(loss)
|
$
|
6.22
|
|
|
$
|
(2.94)
|
|
Refining
margin*
|
12.15
|
|
|
6.75
|
|
FIFO impact,
unfavorable
|
0.13
|
|
|
0.40
|
|
Refining margin
adjusted for FIFO impact*
|
12.28
|
|
|
7.15
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.31
|
|
|
7.96
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.31
|
|
|
4.92
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
3.87
|
|
|
6.89
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
3.87
|
|
|
$
|
4.26
|
|
Barrels sold (barrels
per day)
|
145,555
|
|
|
122,838
|
|
______________________________
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
(1)
|
Direct operating
expenses for the three months ended March 31, 2017 and 2016 are
shown exclusive of depreciation and amortization, which amounts are
presented separately below direct operating expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
Sweet
|
114,243
|
|
|
80.6
|
%
|
|
92,938
|
|
|
80.3
|
%
|
Medium
|
—
|
|
|
—
|
%
|
|
1,513
|
|
|
1.3
|
%
|
Heavy sour
|
16,516
|
|
|
11.7
|
%
|
|
11,914
|
|
|
10.3
|
%
|
Total crude oil
throughput
|
130,759
|
|
|
92.3
|
%
|
|
106,365
|
|
|
91.9
|
%
|
All other feedstocks
and blendstocks
|
10,915
|
|
|
7.7
|
%
|
|
9,344
|
|
|
8.1
|
%
|
Total
throughput
|
141,674
|
|
|
100.0
|
%
|
|
115,709
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
Gasoline
|
74,538
|
|
|
51.6
|
%
|
|
64,033
|
|
|
54.8
|
%
|
Distillate
|
59,444
|
|
|
41.2
|
%
|
|
47,147
|
|
|
40.3
|
%
|
Other (excluding
internally produced fuel)
|
10,335
|
|
|
7.2
|
%
|
|
5,768
|
|
|
4.9
|
%
|
Total refining
production (excluding internally produced fuel)
|
144,317
|
|
|
100.0
|
%
|
|
116,948
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except operating statistics)
|
Wynnewood Refinery
Financial Results:
|
|
|
|
Net sales
|
$
|
471.1
|
|
|
$
|
304.8
|
|
Cost of materials and
other
|
393.1
|
|
|
259.4
|
|
Direct operating
expenses(1)
|
38.6
|
|
|
40.6
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
—
|
|
Depreciation and
amortization
|
12.8
|
|
|
12.6
|
|
Gross profit
(loss)
|
13.7
|
|
|
(7.8)
|
|
Add:
|
|
|
|
Direct operating
expenses(1)
|
38.6
|
|
|
40.6
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
—
|
|
Depreciation and
amortization
|
12.8
|
|
|
12.6
|
|
Refining
margin*
|
78.0
|
|
|
45.4
|
|
FIFO impact,
(favorable) unfavorable
|
(1.1)
|
|
|
4.8
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
76.9
|
|
|
$
|
50.2
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
Gross profit
(loss)
|
$
|
1.83
|
|
|
$
|
(1.10)
|
|
Refining
margin*
|
10.36
|
|
|
6.41
|
|
FIFO impact,
(favorable) unfavorable
|
(0.15)
|
|
|
0.68
|
|
Refining margin
adjusted for FIFO impact*
|
10.21
|
|
|
7.09
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
6.83
|
|
|
5.74
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
5.12
|
|
|
5.74
|
|
Direct operating
expenses and major scheduled turnaround expenses
per barrel
sold
|
6.89
|
|
|
5.64
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
5.16
|
|
|
$
|
5.64
|
|
Barrels sold (barrels
per day)
|
82,967
|
|
|
79,132
|
|
______________________________
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
(1)
|
Direct operating
expenses for the three months ended March 31, 2017 and 2016 are
shown exclusive of depreciation and amortization, which amounts are
presented separately below direct operating expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
Sweet
|
83,610
|
|
|
96.2
|
%
|
|
77,790
|
|
|
97.1
|
%
|
Medium
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Total crude oil
throughput
|
83,610
|
|
|
96.2
|
%
|
|
77,790
|
|
|
97.1
|
%
|
All other feedstocks
and blendstocks
|
3,328
|
|
|
3.8
|
%
|
|
2,360
|
|
|
2.9
|
%
|
Total
throughput
|
86,938
|
|
|
100.0
|
%
|
|
80,150
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
Gasoline
|
44,417
|
|
|
52.4
|
%
|
|
41,845
|
|
|
53.4
|
%
|
Distillate
|
30,463
|
|
|
35.9
|
%
|
|
30,849
|
|
|
39.3
|
%
|
Other (excluding
internally produced fuel)
|
9,963
|
|
|
11.7
|
%
|
|
5,751
|
|
|
7.3
|
%
|
Total refining
production (excluding internally produced fuel)
|
84,843
|
|
|
100.0
|
%
|
|
78,445
|
|
|
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 March 31, 2017 and
serve as the general partner. The financial and operational data
include the results of 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 three months ended
March 31, 2017 are included in CVR Partners' press release
dated April 27, 2017.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
Net sales
|
$
|
85.3
|
|
|
$
|
73.1
|
|
Cost of materials and
other
|
21.8
|
|
|
16.3
|
|
Direct operating
expenses(1)
|
35.9
|
|
|
23.7
|
|
Depreciation and
amortization
|
15.4
|
|
|
7.0
|
|
Cost of
sales
|
73.1
|
|
|
47.0
|
|
Selling, general and
administrative expenses
|
6.9
|
|
|
6.4
|
|
Operating
income
|
5.3
|
|
|
19.7
|
|
Interest expense and
other financing costs
|
(15.7)
|
|
|
(1.7)
|
|
Other income,
net
|
0.1
|
|
|
—
|
|
Income (loss) before
income tax expense
|
(10.3)
|
|
|
18.0
|
|
Income tax
expense
|
—
|
|
|
—
|
|
Net income
(loss)
|
$
|
(10.3)
|
|
|
$
|
18.0
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
20.8
|
|
|
$
|
27.9
|
|
|
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
|
(1)
|
Direct operating
expenses for the three months ended March 31, 2017 and 2016 are
shown exclusive of depreciation and amortization, which amounts are
presented separately below direct operating expenses.
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
Consolidated sales
(thousand tons):
|
|
|
|
Ammonia
|
61.9
|
|
|
24.4
|
|
UAN
|
321.6
|
|
|
|
267.0
|
|
|
|
|
|
Consolidated product
pricing at gate (dollars per ton) (1):
|
|
|
|
Ammonia
|
$
|
308
|
|
|
$
|
367
|
|
UAN
|
$
|
160
|
|
|
$
|
209
|
|
|
|
|
|
Consolidated
production volume (thousand tons):
|
|
|
|
Ammonia (gross
produced) (2)
|
219.2
|
|
|
113.7
|
|
Ammonia (net available
for sale) (2)
|
80.0
|
|
|
15.1
|
|
UAN
|
341.9
|
|
|
248.2
|
|
|
|
|
|
Feedstock:
|
|
|
|
Petroleum coke used in
production (thousand tons)
|
132.6
|
|
|
126.9
|
|
Petroleum coke used in
production (dollars per ton)
|
$
|
14
|
|
|
$
|
17
|
|
Natural gas used in
production (thousands of MMBtus)
|
|
2,091.2
|
|
|
—
|
|
Natural gas used in
production (dollars per MMBtu)(3)
|
$
|
3.41
|
|
|
$
|
—
|
|
Natural gas in cost of
materials and other (thousands of MMBtus)
|
1,476.0
|
|
|
—
|
|
Natural gas in cost of
materials and other (dollars per MMBtu)(3)
|
$
|
3.59
|
|
|
$
|
—
|
|
|
|
|
|
Coffeyville Facility
on-stream factor (4):
|
|
|
|
Gasification
|
98.9
|
%
|
|
97.7
|
%
|
Ammonia
|
98.5
|
%
|
|
97.2
|
%
|
UAN
|
96.8
|
%
|
|
91.4
|
%
|
|
|
|
|
East Dubuque Facility
on-stream factors (4):
|
|
|
|
Ammonia
|
99.6
|
%
|
|
—
|
%
|
UAN
|
98.2
|
%
|
|
—
|
%
|
|
|
|
|
Market
Indicators:
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
387
|
|
|
$
|
375
|
|
Ammonia — Corn belt
(dollars per ton)
|
$
|
424
|
|
|
$
|
441
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
215
|
|
|
$
|
229
|
|
Natural gas NYMEX
(dollars per MMBtu)
|
$
|
3.06
|
|
|
$
|
1.98
|
|
|
|
|
|
|
|
|
|
(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)
|
The cost per MMBtu
excludes derivative activity, when applicable. The impact of
natural gas derivative activity during the periods presented was
not material.
|
|
|
(4)
|
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.
|
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
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except per share data)
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss):
|
|
|
|
Income (loss) before
income tax expense
|
$
|
53.0
|
|
|
$
|
(52.7)
|
|
Adjustments:
|
|
|
|
FIFO impact,
unfavorable
|
0.3
|
|
|
8.8
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
29.4
|
|
(Gain) loss on
derivatives, net
|
(12.2)
|
|
|
1.2
|
|
Current period
settlement on derivative contracts (1)
|
1.2
|
|
|
21.4
|
|
Expenses associated
with the East Dubuque Merger (2)
|
—
|
|
|
1.2
|
|
Adjusted net income
before income tax expense and noncontrolling interest
|
55.2
|
|
|
9.3
|
|
Adjusted net income
attributed to noncontrolling interest
|
(16.7)
|
|
|
(6.6)
|
|
Income tax benefit
(expense), as adjusted
|
(15.4)
|
|
|
5.7
|
|
Adjusted net
income
|
$
|
23.1
|
|
|
$
|
8.4
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.27
|
|
|
$
|
0.10
|
|
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 (each a non-GAAP financial measure), including a
reconciliation to the most directly comparable GAAP financial
measure for the three months ended March 31,
2017 and 2016 is as follows:
|
|
|
|
|
|
|
|
|
Petroleum Segment
Operating Data
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Net Sales
|
$
|
1,423.5
|
|
|
$
|
834.0
|
|
Operating costs and
expenses:
|
|
|
|
Cost of materials and
other
|
1,201.3
|
|
|
722.3
|
|
Direct operating
expenses (exclusive of depreciation and amortization as reflected
below)
|
89.2
|
|
|
88.3
|
|
Major schedule
turnaround expenses
|
12.9
|
|
|
29.4
|
|
Depreciation and
amortization
|
33.3
|
|
|
30.9
|
|
Gross profit
(loss)
|
86.8
|
|
|
(36.9)
|
|
Add:
|
|
|
|
Direct operating
expenses (exclusive of depreciation and amortization as reflected
below)
|
89.2
|
|
|
88.3
|
|
Major schedule
turnaround expenses
|
12.9
|
|
|
29.4
|
|
Depreciation and
amortization
|
33.3
|
|
|
30.9
|
|
Refining
Margin
|
222.2
|
|
|
111.7
|
|
FIFO impact,
unfavorable
|
0.3
|
|
|
8.8
|
|
Refining Margin
adjusted for FIFO impact
|
$
|
222.5
|
|
|
$
|
120.5
|
|
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 ended March 31, 2017 and 2016 is as follows:
|
|
|
|
|
|
|
Petroleum Segment
Operating Data
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Total crude oil
throughput barrels per day
|
214,369
|
|
|
184,155
|
|
Days in the
period
|
90
|
|
|
91
|
|
Total crude oil
throughput barrels
|
19,293,210
|
|
|
16,758,105
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except for $ per barrel data)
|
Refining
Margin
|
$
|
222.2
|
|
|
$
|
111.7
|
|
Divided by: crude oil
throughput barrels
|
19.3
|
|
|
16.8
|
|
Refining Margin per
crude oil throughput barrel
|
$
|
11.52
|
|
|
$
|
6.67
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except for $ per barrel data)
|
Refining Margin
adjusted for FIFO impact
|
$
|
222.5
|
|
|
$
|
120.5
|
|
Divided by: crude oil
throughput barrels
|
19.3
|
|
|
16.8
|
|
Refining Margin
adjusted for FIFO impact per crude oil throughput barrel
|
$
|
11.54
|
|
|
$
|
7.19
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Total crude oil
throughput barrels per day
|
130,759
|
|
|
106,365
|
|
Days in the
period
|
90
|
|
|
91
|
|
Total crude oil
throughput barrels
|
11,768,310
|
|
|
9,679,215
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except for $ per barrel data)
|
Refining
Margin
|
$
|
142.9
|
|
|
$
|
65.3
|
|
Divided by: crude oil
throughput barrels
|
11.8
|
|
|
9.7
|
|
Refining Margin per
crude oil throughput barrel
|
$
|
12.15
|
|
|
$
|
6.75
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except for $ per barrel data)
|
Refining Margin
adjusted for FIFO impact
|
$
|
144.4
|
|
|
$
|
69.2
|
|
Divided by: crude oil
throughput barrels
|
11.8
|
|
|
9.7
|
|
Refining Margin
adjusted for FIFO impact per crude oil throughput barrel
|
$
|
12.28
|
|
|
$
|
7.15
|
|
|
|
|
|
|
|
|
Wynnewood
Refinery
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
Total crude oil
throughput barrels per day
|
83,610
|
|
|
77,790
|
|
Days in the
period
|
90
|
|
|
91
|
|
Total crude oil
throughput barrels
|
7,524,900
|
|
|
7,078,890
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except for $ per barrel data)
|
Refining
Margin
|
$
|
78.0
|
|
|
$
|
45.4
|
|
Divided by: crude oil
throughput barrels
|
7.5
|
|
|
7.1
|
|
Refining Margin per
crude oil throughput barrel
|
$
|
10.36
|
|
|
$
|
6.41
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in millions,
except for $ per barrel data)
|
Refining Margin
adjusted for FIFO impact
|
$
|
76.9
|
|
|
$
|
50.2
|
|
Divided by: crude oil
throughput barrels
|
7.5
|
|
|
7.1
|
|
Refining Margin
adjusted for FIFO impact per crude oil throughput barrel
|
$
|
10.21
|
|
|
$
|
7.09
|
|
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), and (iii) depreciation and
amortization, less the portion of these adjustments attributable to
non-controlling interest. Adjusted EBITDA represents EBITDA
adjusted for, as applicable, 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 from their measures of EBITDA and
adjusted EBITDA); (iv) (gain) loss on derivatives, net; (v) current
period settlements on derivative contracts; (vi) business
interruption insurance recovery and (vii) 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.
A reconciliation of net income attributable to CVR Energy
stockholders to EBITDA and EBITDA to Adjusted EBITDA for the three
months ended March 31, 2017 and 2016 is as follows:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
22.2
|
|
|
$
|
(16.2)
|
|
Add:
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
26.8
|
|
|
11.9
|
|
Income tax expense
(benefit)
|
14.8
|
|
|
(21.8)
|
|
Depreciation and
amortization
|
51.1
|
|
|
40.0
|
|
Adjustments
attributable to noncontrolling interest
|
(35.9)
|
|
|
(18.4)
|
|
EBITDA
|
79.0
|
|
|
(4.5)
|
|
Add:
|
|
|
|
FIFO impact,
unfavorable
|
0.3
|
|
|
8.8
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
29.4
|
|
(Gain) loss on
derivatives, net
|
(12.2)
|
|
|
1.2
|
|
Current period
settlement on derivative contracts (1)
|
1.2
|
|
|
21.4
|
|
Expenses associated
with the East Dubuque Merger (2)
|
—
|
|
|
1.2
|
|
Adjustments
attributable to noncontrolling interest
|
(0.8)
|
|
|
(21.3)
|
|
Adjusted
EBITDA
|
$
|
80.4
|
|
|
$
|
36.2
|
|
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) loss on extinguishment of debt; (iii) major
scheduled turnaround expenses (that many of our competitors
capitalize and thereby exclude from their measures of EBITDA and
adjusted EBITDA); (iv) (gain) loss on derivatives, net; (v) current
period settlements on derivative contracts; (vi) transaction
expenses associated with the East Dubuque Merger and (vii) business
interruption insurance recovery, less the portion of these
adjustments attributable to noncontrolling interest. 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 ended March 31, 2017 and 2016 is as
follows:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Petroleum:
|
|
|
|
Petroleum net income
(loss)
|
$
|
67.0
|
|
|
$
|
(68.0)
|
|
Add:
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
11.2
|
|
|
10.8
|
|
Income tax
expense
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
34.1
|
|
|
31.5
|
|
Petroleum
EBITDA
|
112.3
|
|
|
(25.7)
|
|
Add:
|
|
|
|
FIFO impact,
unfavorable
|
0.3
|
|
|
8.8
|
|
Major scheduled
turnaround expenses
|
12.9
|
|
|
29.4
|
|
(Gain) loss on
derivatives, net
|
(12.2)
|
|
|
1.2
|
|
Current period
settlements on derivative contracts (1)
|
1.2
|
|
|
21.4
|
|
Adjusted Petroleum
EBITDA
|
$
|
114.5
|
|
|
$
|
35.1
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2017
|
|
2016
|
|
(in
millions)
|
Nitrogen
Fertilizer:
|
|
|
|
Nitrogen fertilizer
net income (loss)
|
$
|
(10.3)
|
|
|
$
|
18.0
|
|
Add:
|
|
|
|
Interest expense and
other financing costs, net
|
15.7
|
|
|
1.7
|
|
Income tax
expense
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
15.4
|
|
|
7.0
|
|
Nitrogen Fertilizer
EBITDA
|
20.8
|
|
|
26.7
|
|
Add:
|
|
|
|
Expenses associated
with the East Dubuque Merger (2)
|
—
|
|
|
1.2
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
20.8
|
|
|
$
|
27.9
|
|
|
|
|
|
|
|
|
|
(1)
|
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.
|
|
|
(2)
|
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cvr-energy-reports-2017-first-quarter-results-and-announces-cash-dividend-of-50-cents-300447114.html
SOURCE CVR Energy, Inc.