CVR Energy, Inc. (NYSE: CVI) today announced net income of $90
million, or 94 cents per diluted share, on net sales of $1,935
million for the third quarter of 2018, compared to net income of
$22 million, or 26 cents per diluted share, on net sales of $1,454
million for the 2017 third quarter. Third quarter 2018 adjusted
EBITDA was $172 million, compared to third quarter 2017 adjusted
EBITDA of $91 million.
For the first nine months of 2018, net income was $207 million,
or $2.31 per diluted share, on net sales of $5,386 million,
compared to net income of $34 million, or 39 cents per diluted
share, on net sales of $4,395 million for the same period a year
earlier. Adjusted EBITDA for the first nine months of 2018 was $361
million, compared to adjusted EBITDA of $209 million for the first
nine months of 2017.
“CVR Refining reported solid results for the 2018 third quarter,
attributable to stronger crack spreads, reduced Renewable
Identification Number (RIN) costs and increased internal RIN
generation, wide crude oil differentials and reliable operations,”
said Dave Lamp, CVR Energy’s Chief Executive Officer. “Looking
forward, CVR Refining will remain focused on safe and reliable
operations while taking advantage of favorable product margins and
crude oil spreads.
“CVR Partners posted strong operating performance and improved
fertilizer netbacks at both its Coffeyville, Kansas, and East
Dubuque, Illinois, fertilizer facilities during the 2018 third
quarter,” Lamp said. “Market conditions have continued to improve
since summer and global demand for nitrogen fertilizer is strong.
In addition, product pricing for the late fall of 2018 has
increased by approximately 25 percent from the summer fill season
and we’re seeing continued pricing strength into the first quarter
of 2019.”
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and Wynnewood refineries, reported third
quarter 2018 operating income of $176 million on net sales of
$1,857 million, compared to operating income of $99 million on net
sales of $1,386 million in the third quarter of 2017.
Refining margin adjusted for FIFO impact per combined total
throughput, a non-GAAP financial measure, was $15.41 in the 2018
third quarter, compared to $13.05 during the same period in 2017.
Direct operating expenses (exclusive of depreciation and
amortization), excluding major scheduled turnaround expenses, per
combined total throughput, for the 2018 third quarter were $4.17,
compared to $5.02 in the third quarter of 2017.
Third quarter 2018 combined total throughput was approximately
219,000 barrels per day (bpd), compared to approximately 214,000
bpd of combined total throughput for the third quarter of 2017.
Nitrogen Fertilizers Business
The fertilizer business, which is operated by CVR Partners and
includes the Coffeyville and East Dubuque fertilizer facilities,
reported operating income of $3 million on net sales of $80 million
for the third quarter of 2018, compared to an operating loss of $16
million on net sales of $69 million for the third quarter of
2017.
CVR Partners’ fertilizer facilities produced a combined 212,000
tons of ammonia during the third quarter of 2018, of which 63,000
net tons were available for sale while the rest was upgraded to
other fertilizer products, including 338,000 tons of UAN. In the
2017 third quarter, the fertilizer facilities produced 181,000 tons
of ammonia, of which 46,000 net tons were available for sale while
the remainder was upgraded to other fertilizer products, including
307,000 tons of UAN.
Cash, Debt and Dividend
Consolidated cash and cash equivalents was $702 million at Sept.
30, 2018. Consolidated total debt was $1,168 million at Sept. 30,
2018. The company had no debt exclusive of CVR Refining’s and CVR
Partners’ debt.
CVR Energy also announced a third quarter 2018 cash dividend of
75 cents per share. The dividend, as declared by CVR Energy’s Board
of Directors, will be paid on Nov. 12, 2018, to stockholders of
record on Nov. 5, 2018. CVR Energy’s third quarter cash dividend
brings the cumulative cash dividends paid or declared for the first
nine months of 2018 to $2.00 per share.
Today, CVR Refining announced a 2018 third quarter cash
distribution of 90 cents per common unit. CVR Partners announced
that it will not pay a cash distribution for the 2018 third
quarter.
Third Quarter 2018 Earnings Conference Call
CVR Energy previously announced that it will host its third
quarter 2018 Earnings Conference Call on Thursday, Oct. 25, 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 third quarter 2018 Earnings Conference Call will be webcast
live and can be accessed on the Investor Relations section of CVR
Energy’s website at www.CVREnergy.com. For investors or analysts
who want to participate during the call, the dial-in number is
(877) 407-8291. The webcast will be archived and available through
Nov. 8 at https://edge.media-server.com/m6/p/m5j97b6c. A repeat of
the call can be accessed through Nov. 8 by dialing (877) 660-6853,
conference ID 13683849.
Forward-Looking StatementsThis news release may
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Statements
concerning current estimates, expectations and projections about
future results, performance, prospects, opportunities, plans,
actions and events and other statements, concerns, or matters that
are not historical facts are “forward-looking statements,” as that
term is defined under the federal securities laws. These
forward-looking statements include, but are not limited to,
statements regarding future: crude oil differentials or spreads;
RINs, crude oil, feedstock and product prices; distributions and
operating performance of CVR Refining and CVR Partners; reserves;
improved market conditions; global demand; ammonia and UAN pricing;
fourth quarter performance including throughput, production, direct
operating expenses, capital spending and depreciation; safe and
reliable operations; favorable product margins; and other matters.
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. Investors are
cautioned that various factors may affect these forward-looking
statements, including (among others) price volatility of crude oil,
other feedstocks and refined products; the ability of CVR Refining
and CVR Partners to make cash distributions; potential operating
hazards; costs of compliance with existing, or compliance with new,
laws and regulations and potential liabilities arising therefrom;
impacts of planting season on CVR Partners; general economic and
business conditions; and other risks. For additional discussion of
risk factors which may affect our results, please see the risk
factors and other disclosures included in our most recent Annual
Report on Form 10-K, any subsequently filed Quarterly Reports on
Form 10-Q and our other SEC filings. These and other risks may
cause our actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements included in this news release are made only as of the
date hereof. CVR Energy disclaims any intention or obligation to
update publicly or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
to the extent required by law.
About CVR Energy, Inc.Headquartered in Sugar
Land, Texas, CVR Energy is a diversified holding company primarily
engaged in the petroleum refining and nitrogen fertilizer
manufacturing industries through its holdings in two limited
partnerships, CVR Refining, LP and CVR Partners, LP. CVR Energy and
its subsidiaries serve as the general partner and own 81 percent of
the common units of CVR Refining. CVR Energy subsidiaries serve as
the general partner and own 34 percent of the common units of CVR
Partners.
For further information, please contact:
Investor Contact:Jay FinksCVR Energy, Inc.(281)
207-3588InvestorRelations@CVREnergy.com
Media Relations:Brandee StephensCVR Energy,
Inc.(281) 207-3516MediaRelations@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, 2017).
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except per share data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Consolidated Statement of Operations Data: |
|
|
|
|
|
|
|
Net sales |
$ |
1,935 |
|
|
$ |
1,454 |
|
|
$ |
5,386 |
|
|
$ |
4,395 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Cost of materials and other |
1,561 |
|
|
1,133 |
|
|
4,370 |
|
|
3,582 |
|
Direct operating expenses (1) |
121 |
|
|
160 |
|
|
394 |
|
|
422 |
|
Depreciation and amortization |
49 |
|
|
51 |
|
|
151 |
|
|
152 |
|
Cost of sales |
1,731 |
|
|
1,344 |
|
|
4,915 |
|
|
4,156 |
|
Selling, general and administrative expenses (1) |
28 |
|
|
27 |
|
|
83 |
|
|
82 |
|
Depreciation and amortization |
2 |
|
|
3 |
|
|
8 |
|
|
7 |
|
Loss on asset disposals |
— |
|
|
1 |
|
|
5 |
|
|
2 |
|
Operating income |
174 |
|
|
79 |
|
|
375 |
|
|
148 |
|
Interest expense, net |
(26 |
) |
|
(28 |
) |
|
(79 |
) |
|
(81 |
) |
Gain (loss) on derivatives, net |
5 |
|
|
(17 |
) |
|
75 |
|
|
(5 |
) |
Other income, net |
3 |
|
|
— |
|
|
6 |
|
|
— |
|
Income before income tax expense |
156 |
|
|
34 |
|
|
377 |
|
|
62 |
|
Income tax expense |
35 |
|
|
9 |
|
|
73 |
|
|
18 |
|
Net income |
121 |
|
|
25 |
|
|
304 |
|
|
44 |
|
Less: Net income attributable to noncontrolling
interest |
31 |
|
|
3 |
|
|
97 |
|
|
10 |
|
Net income attributable to CVR Energy
stockholders |
$ |
90 |
|
|
$ |
22 |
|
|
$ |
207 |
|
|
$ |
34 |
|
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
$ |
0.94 |
|
|
$ |
0.26 |
|
|
$ |
2.31 |
|
|
$ |
0.39 |
|
Dividends declared per share |
$ |
0.75 |
|
|
$ |
0.50 |
|
|
$ |
2.00 |
|
|
$ |
1.50 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA* |
$ |
172 |
|
|
$ |
91 |
|
|
$ |
361 |
|
|
$ |
209 |
|
Adjusted net income (loss) * |
91 |
|
|
32 |
|
|
170 |
|
|
52 |
|
Adjusted net income (loss) per diluted share * |
0.95 |
|
|
0.37 |
|
|
1.89 |
|
|
0.60 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic and diluted |
95.8 |
|
|
86.8 |
|
|
89.8 |
|
|
86.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________* See “Use of Non-GAAP Financial
Measures” below.
(1) Direct operating expenses and selling, general and
administrative expenses for the three and nine months ended
September 30, 2018 and 2017 are shown exclusive of
depreciation and amortization.
(In
millions) |
As of September 30,
2018 |
|
As of December 31,
2017 |
Balance Sheet Data: |
|
|
|
Cash
and cash equivalents |
$ |
702 |
|
|
$ |
482 |
|
Working capital |
786 |
|
|
550 |
|
Total assets |
4,002 |
|
|
3,807 |
|
Total debt, including current portion |
1,168 |
|
|
1,166 |
|
Total CVR stockholders’ equity |
1,239 |
|
|
919 |
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Cash Flow Data: |
|
|
|
|
|
|
|
Net cash flow provided by (used in): |
|
|
|
|
|
|
|
Operating activities |
$ |
290 |
|
|
$ |
85 |
|
|
$ |
519 |
|
|
$ |
327 |
|
Investing activities |
(26 |
) |
|
(22 |
) |
|
(67 |
) |
|
(81 |
) |
Financing activities |
(96 |
) |
|
(44 |
) |
|
(232 |
) |
|
(133 |
) |
Net increase in cash and cash equivalents |
$ |
168 |
|
|
$ |
19 |
|
|
$ |
220 |
|
|
$ |
113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and nine months ended September 30, 2018
are included in CVR Refining’s press release dated October 24,
2018. The Nitrogen Fertilizer segment is operated by CVR Partners,
LP (“CVR Partners”), in which we own approximately 34% of the
common units as of September 30, 2018 and serve as the general
partner. The Nitrogen Fertilizer segment consists of nitrogen
fertilizer manufacturing facilities located in Coffeyville, Kansas
and East Dubuque, Illinois. Detailed operating results for the
Nitrogen Fertilizer segment for the three and nine months ended
September 30, 2018 are included in CVR Partners’ press release
dated October 24, 2018.
(In millions) |
Petroleum (CVR
Refining) |
|
Nitrogen Fertilizer (CVR
Partners) |
|
Corporate and
Other |
|
Consolidated |
Three Months Ended September 30, 2018 |
|
|
|
|
|
|
|
Net sales |
$ |
1,857 |
|
|
$ |
80 |
|
|
$ |
(2 |
) |
|
$ |
1,935 |
|
Cost of materials and other |
1,544 |
|
|
19 |
|
|
(2 |
) |
|
1,561 |
|
Direct operating expenses |
85 |
|
|
35 |
|
|
1 |
|
|
121 |
|
Selling, general and administrative |
18 |
|
|
7 |
|
|
3 |
|
|
28 |
|
Depreciation and amortization |
34 |
|
|
16 |
|
|
1 |
|
|
51 |
|
Loss on asset disposals |
— |
|
|
— |
|
|
— |
|
|
— |
|
Operating income (loss) |
$ |
176 |
|
|
$ |
3 |
|
|
$ |
(5 |
) |
|
$ |
174 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
18 |
|
|
$ |
6 |
|
|
$ |
2 |
|
|
$ |
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
Petroleum (CVR
Refining) |
|
Nitrogen Fertilizer (CVR
Partners) |
|
Corporate and
Other |
|
Consolidated |
Nine Months Ended September 30, 2018 |
|
|
|
|
|
|
|
Net sales |
$ |
5,139 |
|
|
$ |
253 |
|
|
$ |
(6 |
) |
|
$ |
5,386 |
|
Cost of materials and other |
4,315 |
|
|
61 |
|
|
(6 |
) |
|
4,370 |
|
Direct operating expenses |
272 |
|
|
121 |
|
|
1 |
|
|
394 |
|
Selling, general and administrative |
56 |
|
|
19 |
|
|
8 |
|
|
83 |
|
Depreciation and amortization |
101 |
|
|
53 |
|
|
5 |
|
|
159 |
|
Loss on asset disposals |
5 |
|
|
— |
|
|
— |
|
|
5 |
|
Operating income (loss) |
$ |
390 |
|
|
$ |
(1 |
) |
|
$ |
(14 |
) |
|
$ |
375 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
50 |
|
|
$ |
15 |
|
|
$ |
3 |
|
|
$ |
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
Petroleum (CVR
Refining) |
|
Nitrogen Fertilizer (CVR
Partners) |
|
Corporate and
Other |
|
Consolidated |
Three Months Ended September 30, 2017 |
|
|
|
|
|
|
|
Net sales |
$ |
1,386 |
|
|
$ |
69 |
|
|
$ |
(1 |
) |
|
$ |
1,454 |
|
Cost of materials and other |
1,114 |
|
|
20 |
|
|
(1 |
) |
|
1,133 |
|
Direct operating expenses |
120 |
|
|
40 |
|
|
— |
|
|
160 |
|
Selling, general and administrative |
19 |
|
|
5 |
|
|
3 |
|
|
27 |
|
Depreciation and amortization |
33 |
|
|
20 |
|
|
1 |
|
|
54 |
|
Loss on asset disposals |
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Operating income (loss) |
$ |
99 |
|
|
$ |
(16 |
) |
|
$ |
(4 |
) |
|
$ |
79 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
19 |
|
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
Petroleum (CVR
Refining) |
|
Nitrogen Fertilizer (CVR
Partners) |
|
Corporate and
Other |
|
Consolidated |
Nine Months Ended September 30, 2017 |
|
|
|
|
|
|
|
Net sales |
$ |
4,148 |
|
|
$ |
253 |
|
|
$ |
(6 |
) |
|
$ |
4,395 |
|
Cost of materials and other |
3,524 |
|
|
63 |
|
|
(5 |
) |
|
3,582 |
|
Direct operating expenses |
308 |
|
|
114 |
|
|
— |
|
|
422 |
|
Selling, general and administrative |
58 |
|
|
19 |
|
|
5 |
|
|
82 |
|
Depreciation and amortization |
100 |
|
|
55 |
|
|
4 |
|
|
159 |
|
Loss on asset disposals |
1 |
|
|
— |
|
|
1 |
|
|
2 |
|
Operating income (loss) |
$ |
157 |
|
|
$ |
2 |
|
|
$ |
(11 |
) |
|
$ |
148 |
|
|
|
|
|
|
|
|
|
Capital expenditures |
$ |
66 |
|
|
$ |
11 |
|
|
$ |
3 |
|
|
$ |
80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) |
Petroleum (CVR
Refining) |
|
Nitrogen Fertilizer (CVR
Partners) |
|
Corporate and
Other |
|
Consolidated |
September 30, 2018 |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
398 |
|
|
$ |
61 |
|
|
$ |
243 |
|
|
$ |
702 |
|
Total assets |
2,505 |
|
|
1,219 |
|
|
278 |
|
|
4,002 |
|
Total debt, including current portion |
539 |
|
|
628 |
|
|
1 |
|
|
1,168 |
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
174 |
|
|
$ |
49 |
|
|
$ |
259 |
|
|
$ |
482 |
|
Total assets |
2,270 |
|
|
1,234 |
|
|
303 |
|
|
3,807 |
|
Total debt, including current portion |
541 |
|
|
626 |
|
|
— |
|
|
1,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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
three and nine months ended September 30, 2018 are included in
CVR Refining’s press release dated October 24, 2018.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Petroleum Segment Summary Financial Results: |
|
|
|
|
|
|
|
Net sales |
$ |
1,857 |
|
|
$ |
1,386 |
|
|
$ |
5,139 |
|
|
$ |
4,148 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Cost of materials and other |
1,544 |
|
|
1,114 |
|
|
4,315 |
|
|
3,524 |
|
Direct operating expenses (1) |
85 |
|
|
120 |
|
|
272 |
|
|
308 |
|
Depreciation and amortization |
33 |
|
|
32 |
|
|
98 |
|
|
97 |
|
Cost of sales |
1,662 |
|
|
1,266 |
|
|
4,685 |
|
|
3,929 |
|
Selling, general and administrative expenses (1) |
18 |
|
|
19 |
|
|
56 |
|
|
58 |
|
Depreciation and amortization |
1 |
|
|
1 |
|
|
3 |
|
|
3 |
|
Loss on asset disposals |
— |
|
|
1 |
|
|
5 |
|
|
1 |
|
Operating income |
176 |
|
|
99 |
|
|
390 |
|
|
157 |
|
Interest expense, net |
(10 |
) |
|
(12 |
) |
|
(32 |
) |
|
(34 |
) |
Gain (loss) on derivatives, net |
5 |
|
|
(17 |
) |
|
75 |
|
|
(5 |
) |
Other income, net |
3 |
|
|
— |
|
|
6 |
|
|
— |
|
Net income |
$ |
174 |
|
|
$ |
70 |
|
|
$ |
439 |
|
|
$ |
118 |
|
|
|
|
|
|
|
|
|
Refining margin* |
$ |
313 |
|
|
$ |
272 |
|
|
$ |
824 |
|
|
$ |
624 |
|
Refining margin adjusted for FIFO impact* |
310 |
|
|
257 |
|
|
779 |
|
|
625 |
|
Adjusted Petroleum EBITDA* |
221 |
|
|
139 |
|
|
494 |
|
|
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________* See “Use of Non-GAAP Financial
Measures” below.
(1) Direct operating expense and selling, general and
administrative expenses for the three and nine months ended
September 30, 2018 and 2017 are shown exclusive of
depreciation and amortization.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In dollars per total throughput barrel) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Petroleum Segment Key Operating Statistics: |
|
|
|
|
|
|
|
Gross profit |
$ |
9.70 |
|
|
$ |
6.07 |
|
|
$ |
7.99 |
|
|
$ |
3.61 |
|
Refining margin* |
$ |
15.54 |
|
|
$ |
13.81 |
|
|
$ |
14.50 |
|
|
$ |
10.32 |
|
FIFO impact, (favorable) unfavorable |
$ |
(0.13 |
) |
|
$ |
(0.76 |
) |
|
$ |
(0.79 |
) |
|
$ |
0.01 |
|
Refining margin adjusted for FIFO impact* |
$ |
15.41 |
|
|
$ |
13.05 |
|
|
$ |
13.71 |
|
|
$ |
10.33 |
|
Direct operating expenses and major turnaround
expenses |
$ |
4.23 |
|
|
$ |
6.12 |
|
|
$ |
4.79 |
|
|
$ |
5.11 |
|
Direct operating expenses excluding major turnaround
expenses |
$ |
4.17 |
|
|
$ |
5.02 |
|
|
$ |
4.77 |
|
|
$ |
4.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________* See “Use of Non-GAAP Financial
Measures” below.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Market Indicators (dollars per barrel): |
|
|
|
|
|
|
|
West
Texas Intermediate (WTI) NYMEX |
$ |
69.43 |
|
|
$ |
48.20 |
|
|
$ |
66.79 |
|
|
$ |
49.36 |
|
Crude Oil Differentials: |
|
|
|
|
|
|
|
WTI less WTS (light/medium sour) |
14.26 |
|
|
0.97 |
|
|
8.14 |
|
|
1.15 |
|
WTI less WCS (heavy sour) |
27.76 |
|
|
10.48 |
|
|
23.77 |
|
|
11.42 |
|
WTI less condensate |
0.37 |
|
|
0.12 |
|
|
0.40 |
|
|
0.12 |
|
Midland Cushing Differential |
14.33 |
|
|
0.79 |
|
|
7.69 |
|
|
0.54 |
|
NYMEX Crack Spreads: |
|
|
|
|
|
|
|
Gasoline |
16.96 |
|
|
20.42 |
|
|
17.69 |
|
|
17.74 |
|
Heating Oil |
22.03 |
|
|
21.05 |
|
|
21.59 |
|
|
17.24 |
|
NYMEX 2-1-1 Crack Spread |
19.50 |
|
|
20.73 |
|
|
19.64 |
|
|
17.49 |
|
PADD
II Group 3 Basis: |
|
|
|
|
|
|
|
Gasoline |
(0.13 |
) |
|
(1.18 |
) |
|
(2.16 |
) |
|
(2.37 |
) |
Ultra Low Sulfur Diesel |
0.89 |
|
|
0.85 |
|
|
0.08 |
|
|
(0.44 |
) |
PADD
II Group 3 Product Crack Spread: |
|
|
|
|
|
|
|
Gasoline |
16.83 |
|
|
19.23 |
|
|
15.53 |
|
|
15.37 |
|
Ultra Low Sulfur Diesel |
22.92 |
|
|
21.90 |
|
|
21.67 |
|
|
16.80 |
|
PADD
II Group 3 2-1-1 |
19.88 |
|
|
20.57 |
|
|
18.60 |
|
|
16.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Petroleum Segment Summary |
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Refining Throughput and Production Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate |
8,425 |
|
|
3.8 |
|
|
1 |
|
|
— |
|
|
13,156 |
|
|
6.3 |
|
|
2,893 |
|
|
1.3 |
|
Sweet |
193,727 |
|
|
88.5 |
|
|
196,341 |
|
|
91.9 |
|
|
179,964 |
|
|
86.5 |
|
|
195,857 |
|
|
88.5 |
|
Heavy sour |
6,746 |
|
|
3.1 |
|
|
6,751 |
|
|
3.2 |
|
|
4,518 |
|
|
2.2 |
|
|
11,643 |
|
|
5.3 |
|
Total crude oil throughput |
208,898 |
|
|
95.4 |
|
|
203,093 |
|
|
95.1 |
|
|
197,638 |
|
|
95.0 |
|
|
210,393 |
|
|
95.1 |
|
All other feedstocks and blendstocks |
10,008 |
|
|
4.6 |
|
|
10,513 |
|
|
4.9 |
|
|
10,454 |
|
|
5.0 |
|
|
10,943 |
|
|
4.9 |
|
Total throughput |
218,906 |
|
|
100.0 |
|
|
213,606 |
|
|
100.0 |
|
|
208,092 |
|
|
100.0 |
|
|
221,336 |
|
|
100.0 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
111,087 |
|
|
50.8 |
|
|
105,712 |
|
|
49.5 |
|
|
103,258 |
|
|
49.6 |
|
|
112,268 |
|
|
50.6 |
|
Distillate |
94,157 |
|
|
43.0 |
|
|
89,655 |
|
|
42.0 |
|
|
89,325 |
|
|
42.9 |
|
|
92,046 |
|
|
41.5 |
|
Other (excluding internally produced fuel) |
13,497 |
|
|
6.2 |
|
|
18,107 |
|
|
8.5 |
|
|
15,486 |
|
|
7.5 |
|
|
17,385 |
|
|
7.9 |
|
Total refining production (excluding internally
produced fuel) |
218,741 |
|
|
100.0 |
|
|
213,474 |
|
|
100.0 |
|
|
208,069 |
|
|
100.0 |
|
|
221,699 |
|
|
100.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Coffeyville Refinery Throughput and Production Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate |
273 |
|
|
0.2 |
|
|
1 |
|
|
— |
|
|
6,448 |
|
|
5.1 |
|
|
2,893 |
|
|
2.1 |
|
Sweet |
127,792 |
|
|
90.3 |
|
|
121,709 |
|
|
89.6 |
|
|
109,937 |
|
|
86.4 |
|
|
116,468 |
|
|
83.7 |
|
Heavy sour |
6,746 |
|
|
4.8 |
|
|
6,751 |
|
|
5.0 |
|
|
4,518 |
|
|
3.6 |
|
|
11,643 |
|
|
8.4 |
|
Total crude oil throughput |
134,811 |
|
|
95.3 |
|
|
128,461 |
|
|
94.6 |
|
|
120,903 |
|
|
95.1 |
|
|
131,004 |
|
|
94.2 |
|
All other feedstocks and blendstocks |
6,664 |
|
|
4.7 |
|
|
7,415 |
|
|
5.4 |
|
|
6,238 |
|
|
4.9 |
|
|
8,124 |
|
|
5.8 |
|
Total throughput |
141,475 |
|
|
100.0 |
|
|
135,876 |
|
|
100.0 |
|
|
127,141 |
|
|
100.0 |
|
|
139,128 |
|
|
100.0 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
72,337 |
|
|
50.7 |
|
|
67,598 |
|
|
49.1 |
|
|
62,543 |
|
|
48.7 |
|
|
70,697 |
|
|
50.1 |
|
Distillate |
60,521 |
|
|
42.4 |
|
|
57,654 |
|
|
41.9 |
|
|
54,914 |
|
|
42.7 |
|
|
58,927 |
|
|
41.7 |
|
Other (excluding internally produced fuel) |
9,900 |
|
|
6.9 |
|
|
12,355 |
|
|
9.0 |
|
|
11,066 |
|
|
8.6 |
|
|
11,619 |
|
|
8.2 |
|
Total refining production (excluding internally
produced fuel) |
142,758 |
|
|
100.0 |
|
|
137,607 |
|
|
100.0 |
|
|
128,523 |
|
|
100.0 |
|
|
141,243 |
|
|
100.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Wynnewood Refinery Throughput and Production Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate |
8,152 |
|
|
10.5 |
|
|
— |
|
|
— |
|
|
6,708 |
|
|
8.3 |
|
|
— |
|
|
— |
|
Sweet |
65,936 |
|
|
85.2 |
|
|
74,632 |
|
|
96.0 |
|
|
70,026 |
|
|
86.5 |
|
|
79,389 |
|
|
96.6 |
|
Total crude oil throughput |
74,088 |
|
|
95.7 |
|
|
74,632 |
|
|
96.0 |
|
|
76,734 |
|
|
94.8 |
|
|
79,389 |
|
|
96.6 |
|
All other feedstocks and blendstocks |
3,344 |
|
|
4.3 |
|
|
3,098 |
|
|
4.0 |
|
|
4,216 |
|
|
5.2 |
|
|
2,819 |
|
|
3.4 |
|
Total throughput |
77,432 |
|
|
100.0 |
|
|
77,730 |
|
|
100.0 |
|
|
80,950 |
|
|
100.0 |
|
|
82,208 |
|
|
100.0 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
38,750 |
|
|
51.0 |
|
|
38,114 |
|
|
50.2 |
|
|
40,715 |
|
|
51.2 |
|
|
41,571 |
|
|
51.6 |
|
Distillate |
33,636 |
|
|
44.3 |
|
|
32,001 |
|
|
42.2 |
|
|
34,411 |
|
|
43.2 |
|
|
33,119 |
|
|
41.2 |
|
Other (excluding internally produced fuel) |
3,597 |
|
|
4.7 |
|
|
5,752 |
|
|
7.6 |
|
|
4,420 |
|
|
5.6 |
|
|
5,766 |
|
|
7.2 |
|
Total refining production (excluding internally
produced fuel) |
75,983 |
|
|
100.0 |
|
|
75,867 |
|
|
100.0 |
|
|
79,546 |
|
|
100.0 |
|
|
80,456 |
|
|
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 September 30, 2018
and serve as the general partner. 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 and nine
months ended September 30, 2018 are included in CVR Partners’
press release dated October 24, 2018.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Nitrogen Fertilizer Segment Business Financial
Results: |
|
|
|
|
|
|
|
Net sales |
$ |
80 |
|
|
$ |
69 |
|
|
$ |
253 |
|
|
$ |
253 |
|
Cost of materials and other |
19 |
|
|
20 |
|
|
61 |
|
|
63 |
|
Direct operating expenses(1) |
35 |
|
|
40 |
|
|
121 |
|
|
114 |
|
Depreciation and amortization |
16 |
|
|
20 |
|
|
53 |
|
|
55 |
|
Cost of sales |
70 |
|
|
80 |
|
|
235 |
|
|
232 |
|
Selling, general and administrative expenses |
7 |
|
|
5 |
|
|
19 |
|
|
19 |
|
Loss on asset disposals |
— |
|
|
— |
|
0 |
|
— |
|
|
— |
|
Operating income (loss) |
3 |
|
|
(16 |
) |
|
(1 |
) |
|
2 |
|
Interest expense, net |
(16 |
) |
|
(16 |
) |
|
(47 |
) |
|
(47 |
) |
Other income, net |
— |
|
|
— |
|
|
— |
|
|
— |
|
Net loss |
$ |
(13 |
) |
|
$ |
(32 |
) |
|
$ |
(48 |
) |
|
$ |
(45 |
) |
|
|
|
|
|
|
|
|
Adjusted Nitrogen Fertilizer EBITDA* |
$ |
19 |
|
|
$ |
5 |
|
|
$ |
58 |
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________* See “Use of Non-GAAP Financial
Measures” below.
(1) Direct operating expenses for the three and nine months
ended September 30, 2018 and 2017 are shown exclusive of
depreciation and amortization.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Nitrogen Fertilizer Segment Key Operating
Statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated sales (thousand tons): |
|
|
|
|
|
|
|
Ammonia |
38 |
|
|
65 |
|
|
156 |
|
|
202 |
|
UAN |
310 |
|
|
299 |
|
|
925 |
|
|
952 |
|
|
|
|
|
|
|
|
|
Consolidated product pricing at gate (dollars per ton) (1): |
|
|
|
|
|
|
|
Ammonia |
$ |
297 |
|
|
$ |
214 |
|
|
$ |
329 |
|
|
$ |
287 |
|
UAN |
$ |
170 |
|
|
$ |
138 |
|
|
$ |
169 |
|
|
$ |
158 |
|
|
|
|
|
|
|
|
|
Consolidated production volume (thousand tons): |
|
|
|
|
|
|
|
Ammonia (gross produced) (2) |
212 |
|
|
181 |
|
|
584 |
|
|
615 |
|
Ammonia (net available for sale) (2) |
63 |
|
|
46 |
|
|
187 |
|
|
204 |
|
UAN |
338 |
|
|
307 |
|
|
919 |
|
|
962 |
|
|
|
|
|
|
|
|
|
Feedstock: |
|
|
|
|
|
|
|
Petroleum coke used in production (thousand
tons) |
117 |
|
|
114 |
|
|
325 |
|
|
371 |
|
Petroleum coke used in production (dollars per
ton) |
$ |
26 |
|
|
$ |
18 |
|
|
$ |
23 |
|
|
$ |
18 |
|
Natural gas used in production (thousands of
MMBtus)(3) |
2,118 |
|
|
1,555 |
|
|
5,933 |
|
|
5,781 |
|
Natural gas used in production (dollars per
MMBtu)(3) |
$ |
3.03 |
|
|
$ |
3.12 |
|
|
$ |
3.01 |
|
|
$ |
3.25 |
|
Natural gas in cost of materials and other
(thousands of MMBtus)(3) |
1,439 |
|
|
1,935 |
|
|
5,268 |
|
|
5,898 |
|
Natural gas in cost of materials and other (dollars
per MMBtu)(3) |
$ |
2.98 |
|
|
$ |
3.15 |
|
|
$ |
3.03 |
|
|
$ |
3.30 |
|
|
|
|
|
|
|
|
|
Coffeyville Facility on-stream factor (4): |
|
|
|
|
|
|
|
Gasification |
100 |
% |
|
96 |
% |
|
91 |
% |
|
98 |
% |
Ammonia |
100 |
% |
|
94 |
% |
|
90 |
% |
|
97 |
% |
UAN |
97 |
% |
|
94 |
% |
|
88 |
% |
|
93 |
% |
|
|
|
|
|
|
|
|
East Dubuque Facility on-stream factors (4): |
|
|
|
|
|
|
|
Ammonia |
99 |
% |
|
76 |
% |
|
93 |
% |
|
92 |
% |
UAN |
98 |
% |
|
77 |
% |
|
93 |
% |
|
92 |
% |
|
|
|
|
|
|
|
|
Market Indicators: |
|
|
|
|
|
|
|
Ammonia — Southern Plains (dollars per ton) |
$ |
337 |
|
|
$ |
238 |
|
|
$ |
354 |
|
|
$ |
314 |
|
Ammonia — Corn belt (dollars per ton) |
$ |
398 |
|
|
$ |
303 |
|
|
$ |
407 |
|
|
$ |
364 |
|
UAN — Corn belt (dollars per ton) |
$ |
203 |
|
|
$ |
165 |
|
|
$ |
208 |
|
|
$ |
192 |
|
Natural gas NYMEX (dollars per MMBtu) |
$ |
2.87 |
|
|
$ |
2.95 |
|
|
$ |
2.85 |
|
|
$ |
3.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
- 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.
- 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.
- The feedstock natural gas shown above does not include natural
gas used for fuel. The cost of fuel natural gas is included in
direct operating expense (exclusive of depreciation and
amortization).
- 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
Our management uses certain non-GAAP performance measures to
evaluate past performance and prospects for the future to
supplement our GAAP financial information presented in accordance
with U.S. GAAP. These non-GAAP financial measures are important
factors in assessing our operating results and profitability and
include performance and liquidity measures along with certain key
operating metrics.
Performance and Liquidity Measures
We use the following performance and liquidity measures:
EBITDA and Adjusted EBITDA. EBITDA represents net income
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
noncontrolling interest. Adjusted EBITDA represents EBITDA adjusted
for consolidated (i) FIFO impact (favorable) unfavorable; (ii)
major turnaround expenses (that many of our competitors capitalize
and thereby exclude from their measures of EBITDA and adjusted
EBITDA); (iii) (gain) loss on derivatives, net; and (iv) current
period settlements on derivative contracts. EBITDA and Adjusted
EBITDA are not recognized terms under GAAP and should not be
substituted for net income or cash flow from operations. We believe
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.
Adjusted net income (loss) is not a recognized term under GAAP
and should not be substituted for net income as a measure of our
performance, but rather should be utilized as a supplemental
measure of financial performance in evaluating our business.
Management believes that adjusted net income (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 the weighted-average diluted shares
outstanding. Adjusted net income (loss) represents net income, as
adjusted, that is attributable to CVR Energy stockholders.
Petroleum EBITDA. EBITDA is a performance measure
representing net income before (i) interest expense and other
financing costs, net of interest income, (ii) income tax expense
and (iii) depreciation and amortization.
Petroleum Adjusted EBITDA. Adjusted EBITDA is a performance
measure representing EBITDA adjusted for (i) (favorable)
unfavorable FIFO impacts associated with our crude oil and refined
product inventories, (ii) major turnaround expenses (that many of
our competitors capitalize and thereby exclude from their measures
of EBITDA and adjusted EBITDA), (iii) (gain) loss on derivatives,
net and (iv) current period settlements on derivative contracts.
Adjusted EBITDA represents the starting point for determining
available cash for distribution. Refer to discussion below for the
Refining margin, adjusted for FIFO impact non-GAAP measure for
discussion of why management adjusted for the FIFO impact of our
inventories. We exclude major turnaround expenses because these
amounts are required expenditures for our refineries, are not
closely related to current period operations, and many of our peer
companies capitalize these amounts thereby excluding these amounts
from their EBITDA-related measures. For derivatives, we adjust
EBITDA to exclude the unrealized or non-cash portion of our
derivative gain or loss from our results in order to arrive at our
starting point for available cash for distribution.
Nitrogen EBITDA. Nitrogen Fertilizer EBITDA represents nitrogen
fertilizer net loss adjusted for (i) interest (income) expense;
(ii) income tax expense; and (iii) depreciation and amortization
expense. Adjusted Nitrogen Fertilizer EBITDA represents Nitrogen
Fertilizer EBITDA adjusted for (i) major turnaround expenses, when
applicable; (ii) gain or loss on extinguishment of debt; and (iii)
business interruption insurance recovery, when applicable. We
present Adjusted Nitrogen Fertilizer EBITDA because we have found
it helpful to consider an operating measure that excludes expenses,
such as major turnaround expense, gain or loss on extinguishment of
debt, loss on disposition of assets, and business interruption
insurance recovery, relating to transactions not reflective of CVR
Partner’s core operations.
Nitrogen Adjusted EBITDA. We also present Adjusted Nitrogen
Fertilizer EBITDA because it is the starting point for calculating
CVR Partner’s available cash for distribution. Adjusted Nitrogen
Fertilizer EBITDA is not a recognized term under GAAP and should
not be substituted for net loss as a measure of performance. We
believe that Nitrogen Fertilizer EBITDA and Adjusted Nitrogen
Fertilizer EBITDA enable investors and analysts to better
understand CVR Partner’s ability to make distributions to its
common unitholders, help investors and analysts evaluate its
ongoing operating results and allow for greater transparency in
reviewing our overall financial, operational and economic
performance by allowing investors to evaluate the same information
used by management. Nitrogen Fertilizer EBITDA and Adjusted
Nitrogen Fertilizer EBITDA presented by other companies may not be
comparable to our presentation, since each company may define these
terms differently.
Refining margin. This performance measure represents the
difference between net sales and cost of materials and other as
reported on our Condensed Consolidated Statements of
Operations.
Refining margin, adjusted for FIFO impact. This performance
measure represents our refining margin adjusted to exclude the
impact of price changes in our crude oil and refined products
inventories. Under our FIFO accounting method for crude oil and
refined products, changes in crude oil prices can cause
fluctuations in the inventory valuation of our raw material, work
in process and finished good inventories, thereby resulting in a
favorable FIFO impact when crude oil prices increase and an
unfavorable FIFO impact when crude oil prices decrease. In periods
of significant price volatility, these price changes have a
significant impact on the valuation on our inventories and thus our
results.
Available cash for distribution. This performance and liquidity
measure is equal to Adjusted EBITDA reduced for cash needed for (i)
debt service, (ii) reserves for environmental and maintenance
capital expenditures, (iii) reserves for major turnaround expenses
and, to the extent applicable, (iv) reserves for future operating
or capital needs that the board of directors of our general partner
deems necessary or appropriate, if any. Available cash for
distribution may be increased by the release of previously
established cash reserves, if any, and other excess cash, at the
discretion of the board of directors of our general partner.
Operating Metrics
During the second quarter of 2018, we changed the metrics
discussed below from a crude oil throughput barrel basis to a total
throughput barrel basis. Prior period information has been revised
to conform to current presentation.
Refining margin and refining margin adjusted for FIFO impact per
total throughput barrel. For both refining margin and refining
margin adjusted for FIFO impact, we present these measures on a per
total throughput barrel basis. In order to calculate these non-GAAP
operating metrics, we utilize the total dollar figures for refining
margin and refining margin adjusted for FIFO impact, as derived
above and divide by the applicable number of total throughput
barrels for the period.
Direct operating expenses, excluding major turnaround expenses,
per total throughput barrel. We provide this performance measure to
exclude major turnaround expenses from the reported amounts of
direct operating expense during a given period. Major turnaround
expenses are not directly correlated to our current period
operations and thus excluding them provides investors and analysts
with the current period cost, exclusive of depreciation and
amortization, we incur to convert a barrel of crude oil into
refined product.
We present these measures because we believe they may help
investors, analysts, lenders and ratings agencies analyze our
results of operations and liquidity in conjunction with our U.S.
GAAP results, including but not limited to our operating
performance as compared to other publicly traded companies in the
refining industry, without regard to historical cost basis or
financing methods and our ability to incur and service debt and
fund capital expenditures. Non-GAAP measures have important
limitations as analytical tools, because they exclude some, but not
all, items that affect net earnings and operating income. These
measures should not be considered substitutes for their most
directly comparable U.S. GAAP financial measures.
A reconciliation of net income attributable to CVR Energy
stockholders to EBITDA and EBITDA to Adjusted EBITDA for the three
and nine months ended September 30, 2018 and 2017 is as
follows:
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net
income attributable to CVR Energy stockholders |
$ |
90 |
|
|
$ |
22 |
|
|
$ |
207 |
|
|
$ |
34 |
|
Add: |
|
|
|
|
|
|
|
Interest expense, net |
26 |
|
|
28 |
|
|
79 |
|
|
81 |
|
Income tax expense |
35 |
|
|
9 |
|
|
73 |
|
|
18 |
|
Depreciation and amortization |
51 |
|
|
54 |
|
|
159 |
|
|
159 |
|
Adjustments attributable to noncontrolling
interest |
(31 |
) |
|
(38 |
) |
|
(107 |
) |
|
(113 |
) |
EBITDA |
171 |
|
|
75 |
|
|
411 |
|
|
179 |
|
Add: |
|
|
|
|
|
|
|
FIFO impact, (favorable) unfavorable |
(3 |
) |
|
(15 |
) |
|
(45 |
) |
|
1 |
|
Major turnaround expenses |
1 |
|
|
24 |
|
|
7 |
|
|
39 |
|
Loss on derivatives, net |
(5 |
) |
|
17 |
|
|
(75 |
) |
|
5 |
|
Current period settlement on derivative contracts
(1) |
10 |
|
|
— |
|
|
41 |
|
|
1 |
|
Insurance recovery - business interruption |
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
Adjustments attributable to noncontrolling
interest |
(2 |
) |
|
(9 |
) |
|
22 |
|
|
(15 |
) |
Adjusted EBITDA |
$ |
172 |
|
|
$ |
91 |
|
|
$ |
361 |
|
|
$ |
209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except per share data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Reconciliation of Income before income tax expense to
Adjusted Net Income: |
|
|
|
|
|
|
|
Income before income tax expense |
$ |
156 |
|
|
$ |
34 |
|
|
$ |
377 |
|
|
$ |
62 |
|
Adjustments: |
|
|
|
|
|
|
|
FIFO impact, (favorable) unfavorable |
(3 |
) |
|
(15 |
) |
|
(45 |
) |
|
1 |
|
Major turnaround expenses |
1 |
|
|
24 |
|
|
7 |
|
|
39 |
|
Gain on derivatives, net |
(5 |
) |
|
17 |
|
|
(75 |
) |
|
5 |
|
Current period settlement on derivative contracts
(1) |
10 |
|
|
— |
|
|
41 |
|
|
1 |
|
Insurance recovery - business interruption |
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
Adjusted net income before income tax expense and
noncontrolling interest |
159 |
|
|
59 |
|
|
305 |
|
|
107 |
|
Adjusted net income attributed to noncontrolling
interest |
(32 |
) |
|
(12 |
) |
|
(75 |
) |
|
(26 |
) |
Income tax expense, as adjusted |
(36 |
) |
|
(15 |
) |
|
(60 |
) |
|
(29 |
) |
Adjusted net income |
$ |
91 |
|
|
$ |
32 |
|
|
$ |
170 |
|
|
$ |
52 |
|
|
|
|
|
|
|
|
|
Adjusted net income per diluted share |
$ |
0.95 |
|
|
$ |
0.37 |
|
|
$ |
1.89 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We have changed our metrics in the second quarter of 2018 from a
crude oil throughput barrel basis to a total throughput barrel
basis, and we have revised the historical information for the
corresponding period of the prior fiscal year from to reflect this
change in metrics.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In
millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Petroleum Segment: |
|
|
|
|
|
|
|
Petroleum net income |
$ |
174 |
|
|
$ |
70 |
|
|
$ |
439 |
|
|
$ |
118 |
|
Add: |
|
|
|
|
|
|
|
Interest expense, net |
10 |
|
|
12 |
|
|
32 |
|
|
34 |
|
Depreciation and amortization |
34 |
|
|
33 |
|
|
101 |
|
|
100 |
|
Petroleum EBITDA |
218 |
|
|
115 |
|
|
572 |
|
|
252 |
|
Add: |
|
|
|
|
|
|
|
FIFO impact, (favorable) unfavorable |
(3 |
) |
|
(15 |
) |
|
(45 |
) |
|
1 |
|
Major turnaround expenses |
1 |
|
|
22 |
|
|
1 |
|
|
37 |
|
Loss on derivatives, net |
(5 |
) |
|
17 |
|
|
(75 |
) |
|
5 |
|
Current period settlements on derivative contracts
(1) |
10 |
|
|
— |
|
|
41 |
|
|
1 |
|
Adjusted Petroleum EBITDA |
$ |
221 |
|
|
$ |
139 |
|
|
$ |
494 |
|
|
$ |
296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
- Represents the portion of gain 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. Upon settlement there is no
cost recovery associated with these contracts.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net sales |
$ |
1,857 |
|
|
$ |
1,386 |
|
|
$ |
5,139 |
|
|
$ |
4,148 |
|
Cost of materials and other |
1,544 |
|
|
1,114 |
|
|
4,315 |
|
|
3,524 |
|
Direct operating expenses (exclusive of depreciation and
amortization as reflected below) |
85 |
|
|
120 |
|
|
272 |
|
|
308 |
|
Depreciation and amortization |
33 |
|
|
32 |
|
|
98 |
|
|
97 |
|
Gross profit |
195 |
|
|
120 |
|
|
454 |
|
|
219 |
|
Add: |
|
|
|
|
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization as reflected below) |
85 |
|
|
120 |
|
|
272 |
|
|
308 |
|
Depreciation and amortization |
33 |
|
|
32 |
|
|
98 |
|
|
97 |
|
Refining margin |
313 |
|
|
272 |
|
|
824 |
|
|
624 |
|
FIFO impact, (favorable) unfavorable |
(3 |
) |
|
(15 |
) |
|
(45 |
) |
|
1 |
|
Refining margin adjusted for FIFO impact |
$ |
310 |
|
|
$ |
257 |
|
|
$ |
779 |
|
|
$ |
625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Total throughput barrels per day |
218,906 |
|
|
213,606 |
|
|
208,092 |
|
|
221,336 |
|
Days in the period |
92 |
|
|
92 |
|
|
273 |
|
|
273 |
|
Total throughput barrels |
20,139,352 |
|
|
19,651,752 |
|
|
56,809,116 |
|
|
60,424,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(in millions, except for $
per barrel data) |
Refining margin |
$ |
313 |
|
|
$ |
272 |
|
|
$ |
824 |
|
|
$ |
624 |
|
Divided by: total throughput barrels |
20 |
|
|
20 |
|
|
57 |
|
|
60 |
|
Refining margin per total throughput barrel |
$ |
15.54 |
|
|
$ |
13.81 |
|
|
$ |
14.50 |
|
|
$ |
10.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except for per throughput barrel data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Refining margin adjusted for FIFO impact |
$ |
310 |
|
|
$ |
257 |
|
|
$ |
779 |
|
|
$ |
625 |
|
Divided by: total throughput barrels |
20 |
|
|
20 |
|
|
57 |
|
|
60 |
|
Refining margin adjusted for FIFO impact per total
throughput barrel |
$ |
15.41 |
|
|
$ |
13.05 |
|
|
$ |
13.71 |
|
|
$ |
10.33 |
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except for per throughput barrel data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Direct operating expenses (exclusive of depreciation and
amortization) |
$ |
85 |
|
|
$ |
120 |
|
|
$ |
272 |
|
|
$ |
308 |
|
Major turnaround expenses |
1 |
|
|
22 |
|
|
1 |
|
|
37 |
|
Direct operating expenses (1) |
84 |
|
|
98 |
|
|
271 |
|
|
271 |
|
Divided by: total throughput barrels |
20 |
|
|
20 |
|
|
57 |
|
|
60 |
|
Direct operating expenses, excluding major
turnaround expenses, per total throughput barrel |
$ |
4.17 |
|
|
$ |
5.02 |
|
|
$ |
4.77 |
|
|
$ |
4.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
- Direct operating expenses are shown exclusive of depreciation
and amortization and major turnaround expenses.
A reconciliation of net income (loss) to EBITDA and EBITDA to
Adjusted EBITDA for the Nitrogen Fertilizer segment for the three
and nine months ended September 30, 2018 and 2017 is as
follows:
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Nitrogen Fertilizer: |
|
|
|
|
|
|
|
Nitrogen fertilizer net loss |
$ |
(13 |
) |
|
$ |
(32 |
) |
|
$ |
(48 |
) |
|
$ |
(45 |
) |
Add: |
|
|
|
|
|
|
|
Interest expense, net |
16 |
|
|
16 |
|
|
47 |
|
|
47 |
|
Depreciation and amortization |
16 |
|
|
20 |
|
|
53 |
|
|
55 |
|
Nitrogen Fertilizer EBITDA |
19 |
|
|
4 |
|
|
52 |
|
|
57 |
|
Add: |
|
|
|
|
|
|
|
Major turnaround expenses |
— |
|
|
2 |
|
|
6 |
|
|
2 |
|
Insurance recovery - business interruption |
— |
|
|
(1 |
) |
|
— |
|
|
(1 |
) |
Adjusted Nitrogen Fertilizer EBITDA |
$ |
19 |
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$ |
5 |
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$ |
58 |
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$ |
58 |
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CVR Energy (NYSE:CVI)
Historical Stock Chart
From Mar 2024 to Apr 2024
CVR Energy (NYSE:CVI)
Historical Stock Chart
From Apr 2023 to Apr 2024