CVR Energy, Inc. (“CVR Energy” or the “Company”) (NYSE: CVI) today
announced net income of $130 million, or $1.29 per diluted share,
on net sales of $2.2 billion for the second quarter of 2023,
compared to net income of $165 million, or $1.64 per diluted share,
on net sales of $3.1 billion for the second quarter of 2022.
Adjusted earnings for the second quarter of 2023 was $1.64 per
diluted share compared to adjusted earnings of $2.45 per diluted
share in the second quarter of 2022, with the decline in the
current period primarily driven by lower crack spreads. Second
quarter 2023 EBITDA was $300 million, compared to second quarter
2022 EBITDA of $401 million. Adjusted EBITDA for the second quarter
of 2023 was $347 million, down from $511 million in the second
quarter of 2022.
“CVR Energy posted solid results for the second
quarter of 2023 driven by strong crack spreads,” said Dave Lamp,
CVR Energy’s Chief Executive Officer. “In addition to our second
quarter 2023 cash dividend of 50 cents, our Board of Directors was
pleased to approve a special dividend of $1.00 per share, bringing
our year to date declared dividends to $2.00 per share.
“CVR Partners achieved solid results for the
2023 second quarter led by strong production, including a combined
ammonia production rate of 100 percent offset by lower fertilizer
pricing,” Lamp said. “CVR Partners announced a cash distribution of
$4.14 per common unit for the 2023 second quarter.”
Petroleum
The Petroleum Segment reported second quarter
2023 operating income of $171 million on net sales of $2.0 billion,
compared to operating income of $297 million on net sales of $2.9
billion in the second quarter of 2022.
Refining margin per total throughput barrel was
$18.21 in the second quarter of 2023, compared to $26.10 during the
same period in 2022. The decrease in refining margin of $145
million was primarily due to a decrease in product crack spreads.
The Group 3 2-1-1 crack spread decreased by $16.47 per barrel
relative to the second quarter of 2022, driven by a tightening
distillate crack spread due primarily to recession concerns and
slowing demand trends.
The Petroleum Segment recognized costs to comply
with the Renewable Fuel Standard (“RFS”) of $88 million, or
$4.85 per throughput barrel, which excludes the RINs’ revaluation
expense impact of $2 million, or 10 cents per total throughput
barrel, for the second quarter of 2023. This is compared to RFS
compliance costs of $102 million, or $5.55 per throughput
barrel, which excludes the RINs’ revaluation expense impact of $51
million, or $2.79 per total throughput barrel, for the second
quarter of 2022. The decrease in RFS compliance costs in 2023 was
primarily related to an increase in RINs generated by ethanol and
biodiesel blending for the second quarter of 2023 compared to the
2022 period. The favorable RINs’ revaluation in 2023 was a result
of a mark-to-market expense in the current period due to a decline
in RIN prices and a lower outstanding obligation in the current
period compared to the 2022 period.
The Petroleum Segment also recognized a second
quarter 2023 derivative net gain of $3 million, or 16 cents
per total throughput barrel, compared to a derivative net loss of
$61 million, or $3.35 per total throughput barrel, for the second
quarter of 2022. Included in this derivative net gain for the
second quarter of 2023 was a $15 million unrealized loss, primarily
a result of crack spread swaps, inventory hedging activity, and
Canadian crude forward purchases and sales, compared to a $22
million unrealized loss for the second quarter of 2022. Offsetting
these impacts, crude oil prices decreased during the quarter, which
led to an unfavorable inventory valuation impact of $21 million, or
$1.17 per total throughput barrel, compared to a favorable
inventory valuation impact of $37 million, or $2.02 per total
throughput barrel, during the second quarter of 2022.
Second quarter 2023 combined total throughput
was approximately 201,000 bpd, compared to approximately 201,000
bpd of combined total throughput for the second quarter of
2022.
On June 28, 2023, the Company, through one of
its indirect wholly owned subsidiaries, entered into a crude oil
supply agreement (the “Gunvor Crude Oil Supply Agreement”) with
Gunvor USA LLC (“Gunvor”), pursuant to which Gunvor will supply
certain crude oil and intermediation logistics in connection with
deliveries beginning on or about January 1, 2024. The Gunvor Crude
Oil Supply Agreement has a term of 24 months, subject to automatic
one-year renewals thereafter in the absence of either party
providing 180 days’ notice of termination and will replace the
Vitol Crude Oil Supply Agreement.
Nitrogen Fertilizer
The Nitrogen Fertilizer Segment reported an
operating income of $67 million on net sales of $183 million for
the second quarter of 2023, compared to operating income of $126
million on net sales of $244 million for the second quarter of
2022.
Second quarter 2023 average realized gate prices
for urea ammonia nitrate (“UAN”) showed a reduction over the prior
year, down 43 percent to $316 per ton, and ammonia was down 40
percent over the prior year to $707 per ton. Average realized
gate prices for UAN and ammonia were $555 and $1,182 per ton,
respectively, for the second quarter of 2022.
CVR Partners, LP’s (“CVR Partners”) fertilizer
facilities produced a combined 219,000 tons of ammonia during the
second quarter of 2023, of which 70,000 net tons were available for
sale while the rest was upgraded to other fertilizer products,
including 339,000 tons of UAN. During the second quarter 2022, the
fertilizer facilities produced 193,000 tons of ammonia, of which
50,000 net tons were available for sale while the remainder was
upgraded to other fertilizer products, including 331,000 tons of
UAN. These increases were due to operating reliability after
completing the planned turnarounds during the third quarter of
2022.
Corporate and Other
The Company reported an income tax expense of
$44 million, or 20.9 percent of income before income taxes, for the
three months ended June 30, 2023, as compared to an income tax
expense of $66 million, or 21.5 percent of income before income
taxes, for the three months ended June 30, 2022. The decrease in
income tax expense was due primarily to a decrease in pretax
earnings.
The renewable diesel unit at the Wynnewood
refinery continued to increase production, with total vegetable oil
throughputs for the second quarter of 2023 of approximately 17.8
million gallons, down from 22.4 million gallons in the first
quarter of 2023 due to a planned catalyst change.
Cash, Debt and Dividend
Consolidated cash and cash equivalents were $751
million at June 30, 2023, an increase of $241 million from December
31, 2022. Consolidated total debt and finance lease obligations
were $1.6 billion at June 30, 2023, including $547 million held by
the Nitrogen Fertilizer Segment.
CVR Energy announced a second quarter 2023 cash
dividend of 50 cents per share. In addition, the Company announced
a special dividend of $1.00 per share. The quarterly and special
dividends, as declared by CVR Energy’s Board of Directors, will be
paid on August 21, 2023, to stockholders of record as of August 14,
2023.
Today, CVR Partners announced that the Board of
Directors of its general partner declared a second quarter 2023
cash distribution of $4.14 per common unit, which will be paid on
August 21, 2023, to common unitholders of record as of August 14,
2023.
Second Quarter
2023 Earnings Conference Call
CVR Energy previously announced that it will
host its second quarter 2023 Earnings Conference Call on Tuesday,
August 1, at 1 p.m. Eastern. The Earnings Conference Call may
also include discussion of Company developments, forward-looking
information and other material information about business and
financial matters.
The second quarter 2023 Earnings Conference Call
will be webcast live and can be accessed on the Investor Relations
section of CVR Energy’s website at www.CVREnergy.com. For investors
or analysts who want to participate during the call, the dial-in
number is (877) 407-8291. The webcast will be archived and
available for 14 days at
https://edge.media-server.com/mmc/p/2k9ej4vv. A repeat of the call
also can be accessed for 14 days by dialing (877) 660-6853,
conference ID 13739750.
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: drivers of
results; crack spreads, including the continued strength thereof;
production rates of CVR Partners, including the impact thereof on
results; nitrogen fertilizer pricing; net income and sales;
adjusted earnings including the drivers thereof; EBITDA and
Adjusted EBITDA; operating income; net sales; refining margin;
distillate crack spreads, including the tightening thereof;
recession; demand trends; cost to comply with the Renewable Fuel
Standard, RIN prices and level and valuation of our net RVO; CVR
Energy’s blending activity, including its impact on RFS compliance
costs; derivative activities and realized and unrealized gains or
losses associated therewith; crude oil pricing; inventory levels
and valuation, including the drivers thereof; throughput rates,
including factors impacting same; crude oil supply and
intermediation agreements; UAN, ammonia and nitrogen fertilizer
production, demand, pricing and sales volumes, including the
factors impacting same; rates at which ammonia will be upgraded to
other fertilizer products; operational reliability, including the
factors impacting same; tax rates and expense; quarterly and
special dividends and distributions, including the timing, payment
and amount (if any) thereof; production rates of our renewable
diesel unit and related feedstock throughput, including factors
impacting same; cash and cash equivalent levels; debt and finance
lease obligations; continued safe and reliable operations;
operating expenses, capital expenditures, depreciation and
amortization and turnaround expense; the expected timing and
completion of turnaround projects; impacts of plant outages and
weather events on throughput volume; renewables initiatives;
conversion of hydrocrackers at Coffeyville and/or feed
pre-treaters, including the completion, operation, capacities,
timing, costs, optionality and benefits thereof; carbon capture and
decarbonization initiatives; Section 45Q credits and future
payments arising under the 45Q Transaction (if any), including the
amount, timing and receipt thereof; utilization rates; global
fertilizer industry conditions; crop and planting conditions;
natural gas and global energy costs; risks related to the
conclusion of consideration of a spin-off of some or all of
Company’s interests in its nitrogen fertilizer business or
potential future reconsideration thereof; and other matters. You
can generally identify forward-looking statements by our use of
forward-looking terminology such as “outlook,” “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “explore,”
“evaluate,” “intend,” “may,” “might,” “plan,” “potential,”
“predict,” “seek,” “should,” or “will,” or the negative thereof or
other variations thereon or comparable terminology. These
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond our
control. Investors are cautioned that various factors may affect
these forward-looking statements, including the rate of any
economic improvement, demand for fossil fuels, price volatility of
crude oil, other feedstocks and refined products (among others);
the ability of the Company to pay cash dividends 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; the health and economic effects of
the COVID-19 pandemic and any variant thereof; general economic and
business conditions; political disturbances, geopolitical
instability and tensions, and associated changes in global trade
policies and economic sanctions, including, but not limited to, in
connection with the Russia/Ukraine conflict; and other risks. For
additional discussion of risk factors which may affect our results,
please see the risk factors and other disclosures included in our
most recent Annual Report on Form 10-K, any subsequently filed
Quarterly Reports on Form 10-Q and our other Securities and
Exchange Commission (“SEC”) filings. These and other risks may
cause our actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements included in this news release are made only as of the
date hereof. CVR Energy disclaims any intention or obligation to
update publicly or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
to the extent required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy
is a diversified holding company primarily engaged in the
renewables, petroleum refining and marketing business as well as in
the nitrogen fertilizer manufacturing business through its interest
in CVR Partners. CVR Energy subsidiaries serve as the general
partner and own 37 percent of the common units of CVR Partners.
Investors and others should note that CVR Energy
may announce material information using SEC filings, press
releases, public conference calls, webcasts and the Investor
Relations page of its website. CVR Energy may use these channels to
distribute material information about the Company and to
communicate important information about the Company, corporate
initiatives and other matters. Information that CVR Energy posts on
its website could be deemed material; therefore, CVR Energy
encourages investors, the media, its customers, business partners
and others interested in the Company to review the information
posted on its website.
For further information, please contact:
Investor RelationsRichard
RobertsCVR Energy, Inc.(281)
207-3205InvestorRelations@CVREnergy.com
Media RelationsBrandee
StephensCVR Energy, Inc. (281)
207-3516MediaRelations@CVREnergy.com
Non-GAAP Measures
Our management uses certain non-GAAP performance
measures, and reconciliations to those measures, to evaluate
current and past performance and prospects for the future to
supplement our financial information presented in accordance with
accounting principles generally accepted in the United States
(“GAAP”). These non-GAAP financial measures are important factors
in assessing our operating results and profitability and include
the performance and liquidity measures defined below.
The following are non-GAAP measures we present
for the period ended June 30, 2023:
EBITDA - Consolidated net income (loss) before
(i) interest expense, net, (ii) income tax expense (benefit) and
(iii) depreciation and amortization expense.
Petroleum EBITDA and Nitrogen Fertilizer EBITDA
- Segment net income (loss) before segment (i) interest expense,
net, (ii) income tax expense (benefit), and (iii) depreciation and
amortization.
Refining Margin - The difference between our
Petroleum Segment net sales and cost of materials and other.
Refining Margin, adjusted for Inventory
Valuation Impacts - Refining Margin adjusted to exclude the impact
of current period market price and volume fluctuations on crude oil
and refined product inventories purchased in prior periods and
lower of cost or net realizable value adjustments, if applicable.
We record our commodity inventories on the first-in-first-out
basis. As a result, significant current period fluctuations in
market prices and the volumes we hold in inventory can have
favorable or unfavorable impacts on our refining margins as
compared to similar metrics used by other publicly-traded companies
in the refining industry.
Refining Margin and Refining Margin adjusted for
Inventory Valuation Impacts, per Throughput Barrel - Refining
Margin and Refining Margin adjusted for Inventory Valuation Impacts
divided by the total throughput barrels during the period, which is
calculated as total throughput barrels per day times the number of
days in the period.
Direct Operating Expenses per Throughput Barrel
- Direct operating expenses for our Petroleum Segment divided by
total throughput barrels for the period, which is calculated as
total throughput barrels per day times the number of days in the
period.
Adjusted EBITDA, Adjusted Petroleum EBITDA and
Adjusted Nitrogen Fertilizer EBITDA - EBITDA, Petroleum EBITDA and
Nitrogen Fertilizer EBITDA adjusted for certain significant
non-cash items and items that management believes are not
attributable to or indicative of our on-going operations or that
may obscure our underlying results and trends.
Adjusted Earnings (Loss) per Share - Earnings
(loss) per share adjusted for certain significant non-cash items
and items that management believes are not attributable to or
indicative of our on-going operations or that may obscure our
underlying results and trends.
Free Cash Flow - Net cash provided by (used in)
operating activities less capital expenditures and capitalized
turnaround expenditures.
Net Debt and Finance Lease Obligations - Net
debt and finance lease obligations is total debt and finance lease
obligations reduced for cash and cash equivalents.
Total Debt and Net Debt and Finance Lease
Obligations to EBITDA Exclusive of Nitrogen Fertilizer - Total debt
and net debt and finance lease obligations is calculated as the
consolidated debt and net debt and finance lease obligations less
the Nitrogen Fertilizer Segment’s debt and net debt and finance
lease obligations as of the most recent period ended divided by
EBITDA exclusive of the Nitrogen Fertilizer Segment for the most
recent twelve-month period.
We present these measures because we believe
they may help investors, analysts, lenders and ratings agencies
analyze our results of operations and liquidity in conjunction with
our U.S. GAAP results, including but not limited to our operating
performance as compared to other publicly-traded companies in the
refining and fertilizer industries, without regard to historical
cost basis or financing methods and our ability to incur and
service debt and fund capital expenditures. Non-GAAP measures have
important limitations as analytical tools, because they exclude
some, but not all, items that affect net earnings and operating
income. These measures should not be considered substitutes for
their most directly comparable U.S. GAAP financial measures. See
“Non-GAAP Reconciliations” included herein for reconciliation of
these amounts. Due to rounding, numbers presented within this
section may not add or equal to numbers or totals presented
elsewhere within this document.
CVR Energy, Inc. (all
information in this release is unaudited)
Consolidated Statement of Operations Data
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions, except per share
data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net sales |
$ |
2,236 |
|
|
$ |
3,144 |
|
|
$ |
4,523 |
|
|
$ |
5,517 |
|
| Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
1,743 |
|
|
|
2,465 |
|
|
|
3,423 |
|
|
|
4,352 |
|
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
165 |
|
|
|
167 |
|
|
|
334 |
|
|
|
327 |
|
|
Depreciation and amortization |
|
71 |
|
|
|
71 |
|
|
|
137 |
|
|
|
136 |
|
|
Cost of sales |
|
1,979 |
|
|
|
2,703 |
|
|
|
3,894 |
|
|
|
4,815 |
|
| Selling, general and
administrative expenses (exclusive of depreciation and
amortization) |
|
32 |
|
|
|
37 |
|
|
|
71 |
|
|
|
75 |
|
| Depreciation and
amortization |
|
1 |
|
|
|
2 |
|
|
|
4 |
|
|
|
4 |
|
|
Operating income |
|
224 |
|
|
|
402 |
|
|
|
554 |
|
|
|
623 |
|
| Other (expense) income: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(16 |
) |
|
|
(23 |
) |
|
|
(32 |
) |
|
|
(48 |
) |
|
Other income (expense), net |
|
4 |
|
|
|
(74 |
) |
|
|
6 |
|
|
|
(84 |
) |
|
Income before income tax expense |
|
212 |
|
|
|
305 |
|
|
|
528 |
|
|
|
491 |
|
| Income tax expense |
|
44 |
|
|
|
66 |
|
|
|
101 |
|
|
|
99 |
|
|
Net income |
|
168 |
|
|
|
239 |
|
|
|
427 |
|
|
|
392 |
|
| Less: Net income attributable
to noncontrolling interest |
|
38 |
|
|
|
74 |
|
|
|
102 |
|
|
|
134 |
|
|
Net income attributable to CVR Energy
stockholders |
$ |
130 |
|
|
$ |
165 |
|
|
$ |
325 |
|
|
$ |
258 |
|
| |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
$ |
1.29 |
|
|
$ |
1.64 |
|
|
$ |
3.23 |
|
|
$ |
2.57 |
|
|
Dividends declared per share |
$ |
0.50 |
|
|
$ |
0.40 |
|
|
$ |
1.00 |
|
|
$ |
0.40 |
|
| |
|
|
|
|
|
|
|
| Adjusted earnings per
share |
$ |
1.64 |
|
|
$ |
2.45 |
|
|
$ |
3.08 |
|
|
$ |
2.47 |
|
| EBITDA* |
$ |
300 |
|
|
$ |
401 |
|
|
$ |
701 |
|
|
$ |
679 |
|
| Adjusted EBITDA * |
$ |
347 |
|
|
$ |
511 |
|
|
$ |
680 |
|
|
$ |
666 |
|
| |
|
|
|
|
|
|
|
| Weighted-average common shares
outstanding - basic and diluted |
|
100.5 |
|
|
|
100.5 |
|
|
|
100.5 |
|
|
|
100.5 |
|
______________________________
* See “Non-GAAP Reconciliations” section below.
Selected Balance Sheet Data
| (in millions) |
June 30, 2023 |
|
December 31, 2022 |
|
Cash and cash equivalents |
$ |
751 |
|
$ |
510 |
|
Working capital |
|
361 |
|
|
154 |
|
Total assets |
|
4,217 |
|
|
4,119 |
|
Total debt and finance lease obligations, including current
portion |
|
1,591 |
|
|
1,591 |
|
Total liabilities |
|
3,240 |
|
|
3,328 |
|
Total CVR stockholders’ equity |
|
755 |
|
|
531 |
Selected Cash Flow Data
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Net cash provided by: |
|
|
|
|
|
|
|
|
Operating activities |
$ |
367 |
|
|
$ |
390 |
|
|
$ |
614 |
|
|
$ |
712 |
|
|
Investing activities |
|
(96 |
) |
|
|
(115 |
) |
|
|
(130 |
) |
|
|
(156 |
) |
|
Financing activities |
|
(121 |
) |
|
|
(58 |
) |
|
|
(243 |
) |
|
|
(173 |
) |
|
Net increase in cash and cash equivalents and restricted
cash |
$ |
150 |
|
|
$ |
217 |
|
|
$ |
241 |
|
|
$ |
383 |
|
| |
|
|
|
|
|
|
|
| Free cash flow* |
$ |
271 |
|
|
$ |
275 |
|
|
$ |
484 |
|
|
$ |
556 |
|
___________________________
* See “Non-GAAP Reconciliations” section
below.
Selected Segment Data
| |
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2023 |
| (in millions) |
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Net sales |
$ |
2,000 |
|
$ |
183 |
|
$ |
2,236 |
|
$ |
3,993 |
|
$ |
409 |
|
$ |
4,523 |
| Operating income |
|
171 |
|
|
67 |
|
|
224 |
|
|
408 |
|
|
176 |
|
|
554 |
| Net income |
|
194 |
|
|
60 |
|
|
168 |
|
|
453 |
|
|
162 |
|
|
427 |
| EBITDA* |
|
220 |
|
|
87 |
|
|
300 |
|
|
505 |
|
|
211 |
|
|
701 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
$ |
20 |
|
$ |
5 |
|
$ |
27 |
|
$ |
50 |
|
$ |
9 |
|
$ |
62 |
|
Growth capital expenditures |
|
2 |
|
|
1 |
|
|
21 |
|
|
3 |
|
|
1 |
|
|
35 |
|
Total capital expenditures |
$ |
22 |
|
$ |
6 |
|
$ |
48 |
|
$ |
53 |
|
$ |
10 |
|
$ |
97 |
| |
Three Months Ended June 30, 2022 |
|
Six Months Ended June 30, 2022 |
| (in millions) |
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Net sales |
$ |
2,868 |
|
$ |
244 |
|
$ |
3,144 |
|
$ |
5,022 |
|
$ |
467 |
|
$ |
5,517 |
| Operating income |
|
297 |
|
|
126 |
|
|
402 |
|
|
427 |
|
|
230 |
|
|
623 |
| Net income |
|
306 |
|
|
118 |
|
|
239 |
|
|
432 |
|
|
211 |
|
|
392 |
| EBITDA* |
|
347 |
|
|
147 |
|
|
401 |
|
|
514 |
|
|
271 |
|
|
679 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
$ |
19 |
|
$ |
8 |
|
$ |
28 |
|
$ |
37 |
|
$ |
13 |
|
$ |
51 |
|
Growth capital expenditures |
|
— |
|
|
1 |
|
|
13 |
|
|
1 |
|
|
1 |
|
|
40 |
|
Total capital expenditures |
$ |
19 |
|
$ |
9 |
|
$ |
41 |
|
$ |
38 |
|
$ |
14 |
|
$ |
91 |
___________________________
* See “Non-GAAP Reconciliations” section
below.(1) Capital expenditures are shown exclusive
of capitalized turnaround expenditures.Selected Balance
Sheet Data
| |
June 30, 2023 |
|
December 31, 2022 |
| (in millions) |
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Cash and cash equivalents(1) |
$ |
514 |
|
$ |
69 |
|
$ |
751 |
|
$ |
235 |
|
$ |
86 |
|
$ |
510 |
| Total assets |
|
4,260 |
|
|
1,019 |
|
|
4,217 |
|
|
4,354 |
|
|
1,100 |
|
|
4,119 |
| Total debt and finance lease
obligations, including current portion(2) |
|
47 |
|
|
547 |
|
|
1,591 |
|
|
48 |
|
|
547 |
|
|
1,591 |
______________________________
(1) Corporate cash and cash equivalents
consisted of $168 million and $189 million at June 30, 2023 and
December 31, 2022, respectively.(2) Corporate total debt and
finance lease obligations, including current portion consisted of
$997 million and $996 million at June 30, 2023 and December 31,
2022, respectively.
Petroleum Segment
Key Operating Metrics per Total Throughput
Barrel
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Refining margin * |
$ |
18.21 |
|
$ |
26.10 |
|
$ |
20.68 |
|
$ |
21.50 |
| Refining margin adjusted for
inventory valuation impacts * |
|
19.38 |
|
|
24.08 |
|
|
21.61 |
|
|
16.77 |
| Direct operating expenses
* |
|
5.46 |
|
|
6.12 |
|
|
5.68 |
|
|
5.85 |
______________________________
* See “Non-GAAP Reconciliations” section below.
Throughput Data by Refinery
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
(in bpd) |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Coffeyville |
|
|
|
|
|
|
|
|
Regional crude |
73,547 |
|
66,266 |
|
59,527 |
|
53,089 |
|
WTI |
25,091 |
|
34,513 |
|
31,343 |
|
41,127 |
|
WTL |
— |
|
1,317 |
|
— |
|
662 |
|
Midland WTI |
— |
|
— |
|
— |
|
1,294 |
|
Condensate |
6,598 |
|
10,596 |
|
7,879 |
|
10,972 |
|
Heavy Canadian |
84 |
|
6,468 |
|
2,091 |
|
6,614 |
|
DJ Basin |
16,630 |
|
10,763 |
|
15,229 |
|
14,379 |
|
Other feedstocks and blendstocks |
12,124 |
|
9,270 |
|
12,678 |
|
10,301 |
| Wynnewood |
|
|
|
|
|
|
|
|
Regional crude |
51,142 |
|
47,392 |
|
50,485 |
|
45,407 |
|
WTL |
1,002 |
|
1,660 |
|
2,471 |
|
1,006 |
|
Midland WTI |
— |
|
— |
|
— |
|
813 |
|
WTS |
— |
|
— |
|
— |
|
288 |
|
Condensate |
11,992 |
|
10,710 |
|
13,950 |
|
10,499 |
|
Other feedstocks and blendstocks |
2,865 |
|
2,291 |
|
3,144 |
|
2,855 |
|
Total throughput |
201,075 |
|
201,246 |
|
198,797 |
|
199,306 |
Production Data by Refinery
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in bpd) |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Coffeyville |
|
|
|
|
|
|
|
|
Gasoline |
68,008 |
|
|
71,003 |
|
|
66,258 |
|
|
73,015 |
|
|
Distillate |
57,996 |
|
|
58,769 |
|
|
54,100 |
|
|
56,728 |
|
|
Other liquid products |
3,816 |
|
|
5,730 |
|
|
4,461 |
|
|
5,361 |
|
|
Solids |
3,916 |
|
|
4,342 |
|
|
3,632 |
|
|
4,351 |
|
| Wynnewood |
|
|
|
|
|
|
|
|
Gasoline |
36,017 |
|
|
33,255 |
|
|
37,991 |
|
|
31,322 |
|
|
Distillate |
23,604 |
|
|
22,316 |
|
|
24,424 |
|
|
22,416 |
|
|
Other liquid products |
6,714 |
|
|
4,897 |
|
|
6,499 |
|
|
5,015 |
|
|
Solids |
10 |
|
|
7 |
|
|
10 |
|
|
13 |
|
|
Total production |
200,081 |
|
|
200,319 |
|
|
197,375 |
|
|
198,221 |
|
| |
|
|
|
|
|
|
|
| Light product yield (as % of
crude throughput)(1) |
99.8 |
% |
|
97.7 |
% |
|
99.9 |
% |
|
98.6 |
% |
| Liquid volume yield (as % of
total throughput)(2) |
97.6 |
% |
|
97.4 |
% |
|
97.5 |
% |
|
97.3 |
% |
| Distillate yield (as % of
crude throughput)(3) |
43.9 |
% |
|
42.7 |
% |
|
42.9 |
% |
|
42.5 |
% |
_____________________________
(1) Total Gasoline and Distillate divided by
total Regional crude, WTI, WTL, Midland WTI, WTS, Condensate, Heavy
Canadian, and DJ Basin throughput.(2) Total Gasoline, Distillate,
and Other liquid products divided by total throughput.(3) Total
Distillate divided by total Regional crude, WTI, WTL, Midland WTI,
WTS, Condensate, Heavy Canadian, and DJ Basin throughput.
Key Market Indicators
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
West Texas Intermediate (WTI) NYMEX |
$ |
73.51 |
|
|
$ |
108.51 |
|
|
$ |
74.76 |
|
|
$ |
101.86 |
|
| Crude Oil Differentials to
WTI: |
|
|
|
|
|
|
|
|
Brent |
|
4.22 |
|
|
|
3.38 |
|
|
|
5.18 |
|
|
|
3.08 |
|
|
WCS (heavy sour) |
|
(13.36 |
) |
|
|
(15.34 |
) |
|
|
(16.54 |
) |
|
|
(14.08 |
) |
|
Condensate |
|
(0.43 |
) |
|
|
(0.62 |
) |
|
|
(0.15 |
) |
|
|
(0.26 |
) |
|
Midland Cushing |
|
0.93 |
|
|
|
1.14 |
|
|
|
1.22 |
|
|
|
1.28 |
|
| NYMEX Crack Spreads: |
|
|
|
|
|
|
|
|
Gasoline |
|
35.64 |
|
|
|
46.09 |
|
|
|
32.72 |
|
|
|
34.96 |
|
|
Heating Oil |
|
28.91 |
|
|
|
61.03 |
|
|
|
37.92 |
|
|
|
47.67 |
|
|
NYMEX 2-1-1 Crack Spread |
|
32.27 |
|
|
|
53.56 |
|
|
|
35.32 |
|
|
|
41.31 |
|
| PADD II Group 3 Product
Basis: |
|
|
|
|
|
|
|
|
Gasoline |
|
(4.24 |
) |
|
|
(9.56 |
) |
|
|
(4.01 |
) |
|
|
(8.38 |
) |
|
Ultra-Low Sulfur Diesel |
|
3.76 |
|
|
|
(0.55 |
) |
|
|
(0.44 |
) |
|
|
(3.12 |
) |
| PADD II Group 3 Product Crack
Spread: |
|
|
|
|
|
|
|
|
Gasoline |
|
31.40 |
|
|
|
36.53 |
|
|
|
28.71 |
|
|
|
26.57 |
|
|
Ultra-Low Sulfur Diesel |
|
32.66 |
|
|
|
60.48 |
|
|
|
37.48 |
|
|
|
44.55 |
|
| PADD II Group 3 2-1-1 |
|
32.03 |
|
|
|
48.50 |
|
|
|
33.10 |
|
|
|
35.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer Segment:
Ammonia Utilization Rates
(1)
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (percent of capacity
utilization) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Consolidated |
100 |
% |
|
89 |
% |
|
103 |
% |
|
88 |
% |
_____________________________
(1) Reflects our ammonia utilization rates on a
consolidated basis. Utilization is an important measure used by
management to assess operational output at each of CVR Partners’
facilities. Utilization is calculated as actual tons produced
divided by capacity. We present our utilization for the three and
six months ended June 30, 2023 and 2022 and take into account the
impact of our current turnaround cycles on any specific period.
Additionally, we present utilization solely on ammonia production
rather than each nitrogen product as it provides a comparative
baseline against industry peers and eliminates the disparity of
plant configurations for upgrade of ammonia into other nitrogen
products. With our efforts being primarily focused on ammonia
upgrade capabilities, this measure provides a meaningful view of
how well we operate.Sales and Production Data
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Consolidated sales (thousand
tons): |
|
|
|
|
|
|
|
|
Ammonia |
|
79 |
|
|
52 |
|
|
121 |
|
|
91 |
|
UAN |
|
329 |
|
|
287 |
|
|
688 |
|
|
609 |
| |
|
|
|
|
|
|
|
| Consolidated product pricing
at gate (dollars per ton):(1) |
|
|
|
|
|
|
|
|
Ammonia |
$ |
707 |
|
$ |
1,182 |
|
$ |
770 |
|
$ |
1,127 |
|
UAN |
|
316 |
|
|
555 |
|
|
390 |
|
|
524 |
| |
|
|
|
|
|
|
|
| Consolidated production volume
(thousand tons): |
|
|
|
|
|
|
|
|
Ammonia(gross produced)(2) |
|
219 |
|
|
193 |
|
|
442 |
|
|
380 |
|
Ammonia(net available for sale)(2) |
|
70 |
|
|
50 |
|
|
132 |
|
|
102 |
|
UAN |
|
339 |
|
|
331 |
|
|
705 |
|
|
648 |
| |
|
|
|
|
|
|
|
| Feedstock: |
|
|
|
|
|
|
|
|
Petroleum coke used in production(thousand tons) |
|
124 |
|
|
116 |
|
|
255 |
|
|
224 |
|
Petroleum coke used in production(dollars per ton) |
$ |
73.91 |
|
$ |
49.91 |
|
$ |
75.62 |
|
$ |
53.06 |
|
Natural gas used in production(thousands of MMBtu)(3) |
|
2,194 |
|
|
1,936 |
|
|
4,296 |
|
|
3,697 |
|
Natural gas used in production(dollars per MMBtu)(3) |
$ |
2.35 |
|
$ |
7.34 |
|
$ |
4.02 |
|
$ |
6.48 |
|
Natural gas in cost of materials and other(thousands of
MMBtu)(3) |
|
2,403 |
|
|
1,707 |
|
|
3,718 |
|
|
3,235 |
|
Natural gas in cost of materials and other(dollars per
MMBtu)(3) |
$ |
4.11 |
|
$ |
5.98 |
|
$ |
5.41 |
|
$ |
5.81 |
________________________________
(1) Product pricing at gate represents sales
less freight revenue divided by product sales volume in tons and is
shown in order to provide a pricing measure that is comparable
across the fertilizer industry.(2) Gross tons produced for ammonia
represent total ammonia produced, including ammonia produced that
was upgraded into other fertilizer products. Net tons available for
sale represent ammonia available for sale that was not upgraded
into other fertilizer products.(3) The feedstock natural gas shown
above does not include natural gas used for fuel. The cost of fuel
natural gas is included in direct operating expense.Key
Market Indicators
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Ammonia — Southern Plains(dollars per ton) |
$ |
435 |
|
$ |
1,241 |
|
$ |
586 |
|
$ |
1,259 |
| Ammonia — Corn belt(dollars
per ton) |
|
472 |
|
|
1,405 |
|
|
682 |
|
|
1,391 |
| UAN — Corn belt(dollars per
ton) |
|
298 |
|
|
632 |
|
|
335 |
|
|
624 |
| |
|
|
|
|
|
|
|
| Natural gas NYMEX(dollars per
MMBtu) |
$ |
2.33 |
|
$ |
7.49 |
|
$ |
2.54 |
|
$ |
6.06 |
| |
|
|
|
|
|
|
|
|
|
|
|
Q3 2023 Outlook
The table below summarizes our outlook for
certain operational statistics and financial information for the
third quarter of 2023. See “Forward-Looking Statements” above.
| |
Q3 2023 |
| |
Low |
|
High |
| Petroleum |
|
|
|
|
Total throughput(bpd) |
|
200,000 |
|
|
|
215,000 |
|
|
Direct operating expenses(in millions)(1) |
$ |
95 |
|
|
$ |
105 |
|
| |
|
|
|
| Renewables(2) |
|
|
|
|
Total throughput(in millions of gallons) |
|
17 |
|
|
|
22 |
|
|
Direct operating expenses(in millions)(1) |
$ |
6 |
|
|
$ |
8 |
|
| |
|
|
|
| Nitrogen Fertilizer |
|
|
|
|
Ammonia utilization rates |
|
|
|
|
Consolidated |
|
95 |
% |
|
|
100 |
% |
|
Coffeyville Fertilizer Facility |
|
95 |
% |
|
|
100 |
% |
|
East Dubuque Fertilizer Facility |
|
95 |
% |
|
|
100 |
% |
|
Direct operating expenses(in millions)(1) |
$ |
50 |
|
|
$ |
55 |
|
| |
|
|
|
| Capital Expenditures (in
millions)(3) |
|
|
|
|
Petroleum |
$ |
45 |
|
|
$ |
49 |
|
|
Renewables(2) |
|
23 |
|
|
|
25 |
|
|
Nitrogen Fertilizer |
|
14 |
|
|
|
16 |
|
|
Other |
|
3 |
|
|
|
5 |
|
|
Total capital expenditures |
$ |
85 |
|
|
$ |
95 |
|
__________________________________
(1) Direct operating expenses are shown
exclusive of depreciation and amortization and, for the Nitrogen
Fertilizer Segment, turnaround expenses and inventory valuation
impacts.(2) Renewables reflects spending on the Wynnewood renewable
diesel unit project. As of June 30, 2023, Renewables does not meet
the definition of a reportable segment as defined under Accounting
Standards Codification 280.(3) Capital expenditures is disclosed on
an accrual basis.
Non-GAAP Reconciliations:
Reconciliation of Net Income
to EBITDA and Adjusted EBITDA
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net income |
$ |
168 |
|
$ |
239 |
|
|
$ |
427 |
|
|
$ |
392 |
|
|
Interest expense, net |
|
16 |
|
|
23 |
|
|
|
32 |
|
|
|
48 |
|
|
Income tax expense |
|
44 |
|
|
66 |
|
|
|
101 |
|
|
|
99 |
|
|
Depreciation and amortization |
|
72 |
|
|
73 |
|
|
|
141 |
|
|
|
140 |
|
|
EBITDA |
|
300 |
|
|
401 |
|
|
|
701 |
|
|
|
679 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability |
|
2 |
|
|
51 |
|
|
|
(54 |
) |
|
|
70 |
|
|
Unrealized loss (gain) on derivatives, net |
|
19 |
|
|
21 |
|
|
|
(13 |
) |
|
|
15 |
|
|
Inventory valuation impacts, unfavorable (favorable) |
|
26 |
|
|
(41 |
) |
|
|
46 |
|
|
|
(177 |
) |
|
Call Option Lawsuits settlement |
|
— |
|
|
79 |
|
|
|
— |
|
|
|
79 |
|
|
Adjusted EBITDA |
$ |
347 |
|
$ |
511 |
|
|
$ |
680 |
|
|
$ |
666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Basic and Diluted
Earnings per Share to Adjusted
Earnings per Share
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Basic and diluted earnings per share |
$ |
1.29 |
|
$ |
1.64 |
|
|
$ |
3.23 |
|
|
$ |
2.57 |
|
| Adjustments:(1) |
|
|
|
|
|
|
|
|
Revaluation of RFS liability |
|
0.01 |
|
|
0.38 |
|
|
|
(0.40 |
) |
|
|
0.52 |
|
|
Unrealized loss (gain) on derivatives, net |
|
0.14 |
|
|
0.16 |
|
|
|
(0.10 |
) |
|
|
0.11 |
|
|
Inventory valuation impacts, unfavorable (favorable) |
|
0.20 |
|
|
(0.31 |
) |
|
|
0.35 |
|
|
|
(1.31 |
) |
|
Call Option Lawsuits settlement |
|
— |
|
|
0.58 |
|
|
|
— |
|
|
|
0.58 |
|
|
Adjusted earnings per share |
$ |
1.64 |
|
$ |
2.45 |
|
|
$ |
3.08 |
|
|
$ |
2.47 |
|
_____________________________
(1) Amounts are shown after-tax, using the
Company’s marginal tax rate, and are presented on a per share basis
using the weighted average shares outstanding for each
period.Reconciliation of Net Cash Provided
By Operating Activities to Free Cash
Flow
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net cash provided by operating activities |
$ |
367 |
|
|
$ |
390 |
|
|
$ |
614 |
|
|
$ |
712 |
|
| Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
(55 |
) |
|
|
(62 |
) |
|
|
(100 |
) |
|
|
(88 |
) |
|
Capitalized turnaround expenditures |
|
(42 |
) |
|
|
(53 |
) |
|
|
(50 |
) |
|
|
(68 |
) |
|
Return on equity method investment |
|
1 |
|
|
|
— |
|
|
|
20 |
|
|
|
— |
|
|
Free cash flow |
$ |
271 |
|
|
$ |
275 |
|
|
$ |
484 |
|
|
$ |
556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Petroleum Segment Net Income
to EBITDA and Adjusted EBITDA
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Petroleum net income |
$ |
194 |
|
|
$ |
306 |
|
|
$ |
453 |
|
|
$ |
432 |
|
|
Interest income, net |
|
(19 |
) |
|
|
(5 |
) |
|
|
(39 |
) |
|
|
(11 |
) |
|
Depreciation and amortization |
|
45 |
|
|
|
46 |
|
|
|
91 |
|
|
|
93 |
|
|
Petroleum EBITDA |
|
220 |
|
|
|
347 |
|
|
|
505 |
|
|
|
514 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability |
|
2 |
|
|
|
51 |
|
|
|
(54 |
) |
|
|
70 |
|
|
Unrealized loss (gain) on derivatives, net |
|
15 |
|
|
|
22 |
|
|
|
(16 |
) |
|
|
17 |
|
|
Inventory valuation impacts, unfavorable (favorable)(1) |
|
21 |
|
|
|
(37 |
) |
|
|
33 |
|
|
|
(170 |
) |
|
Petroleum Adjusted EBITDA |
$ |
258 |
|
|
$ |
383 |
|
|
$ |
468 |
|
|
$ |
431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Petroleum Segment Gross Profit
to Refining Margin and Refining Margin Adjusted for
Inventory Valuation Impacts
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net sales |
$ |
2,000 |
|
|
$ |
2,868 |
|
|
$ |
3,993 |
|
|
$ |
5,022 |
|
| Less: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
(1,667 |
) |
|
|
(2,390 |
) |
|
|
(3,249 |
) |
|
|
(4,247 |
) |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
(100 |
) |
|
|
(112 |
) |
|
|
(204 |
) |
|
|
(211 |
) |
|
Depreciation and amortization |
|
(45 |
) |
|
|
(46 |
) |
|
|
(91 |
) |
|
|
(93 |
) |
|
Gross profit |
|
188 |
|
|
|
320 |
|
|
|
449 |
|
|
|
471 |
|
| Add: |
|
|
|
|
|
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
100 |
|
|
|
112 |
|
|
|
204 |
|
|
|
211 |
|
|
Depreciation and amortization |
|
45 |
|
|
|
46 |
|
|
|
91 |
|
|
|
93 |
|
|
Refining margin |
|
333 |
|
|
|
478 |
|
|
|
744 |
|
|
|
775 |
|
| Inventory valuation impacts,
unfavorable (favorable)(1) |
|
21 |
|
|
|
(37 |
) |
|
|
33 |
|
|
|
(170 |
) |
|
Refining margin adjusted for inventory valuation
impacts |
$ |
354 |
|
|
$ |
441 |
|
|
$ |
777 |
|
|
$ |
605 |
|
_____________________________
(1) The Petroleum Segment’s basis for
determining inventory value under GAAP is First-In, First-Out
(“FIFO”). Changes in crude oil prices can cause fluctuations in the
inventory valuation of crude oil, work in process and finished
goods, thereby resulting in a favorable inventory valuation impact
when crude oil prices increase and an unfavorable inventory
valuation impact when crude oil prices decrease. The inventory
valuation impact is calculated based upon inventory values at the
beginning of the accounting period and at the end of the accounting
period. In order to derive the inventory valuation impact per total
throughput barrel, we utilize the total dollar figures for the
inventory valuation impact and divide by the number of total
throughput barrels for the period.Reconciliation
of Petroleum Segment Total
Throughput Barrels
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| Total throughput barrels per
day |
201,075 |
|
201,246 |
|
198,797 |
|
199,306 |
| Days in the period |
91 |
|
91 |
|
181 |
|
181 |
|
Total throughput barrels |
18,297,814 |
|
18,313,357 |
|
35,982,294 |
|
36,074,355 |
|
|
|
|
|
|
|
|
|
Reconciliation of Petroleum
Segment Refining Margin per Total Throughput
Barrel
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions, except for per
throughput barrel data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Refining margin |
$ |
333 |
|
$ |
478 |
|
$ |
744 |
|
$ |
775 |
| Divided by: total throughput
barrels |
|
18 |
|
|
18 |
|
|
36 |
|
|
36 |
|
Refining margin per total throughput barrel |
$ |
18.21 |
|
$ |
26.10 |
|
$ |
20.68 |
|
$ |
21.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Petroleum Segment Refining Margin Adjusted
for Inventory Valuation Impacts per Total Throughput
Barrel
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions, except for
throughput barrel data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Refining margin adjusted for inventory valuation impacts |
$ |
354 |
|
$ |
441 |
|
$ |
777 |
|
$ |
605 |
| Divided by: total throughput
barrels |
|
18 |
|
|
18 |
|
|
36 |
|
|
36 |
|
Refining margin adjusted for inventory valuation impacts
per total throughput barrel |
$ |
19.38 |
|
$ |
24.08 |
|
$ |
21.61 |
|
$ |
16.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Petroleum
Segment Direct Operating Expenses per Total
Throughput Barrel
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions, except for
throughput barrel data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
$ |
100 |
|
$ |
112 |
|
$ |
204 |
|
$ |
211 |
| Divided by: total throughput
barrels |
|
18 |
|
|
18 |
|
|
36 |
|
|
36 |
|
Direct operating expenses per total throughput
barrel |
$ |
5.46 |
|
$ |
6.12 |
|
$ |
5.68 |
|
$ |
5.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Nitrogen Fertilizer
Segment Net Income to EBITDA and
Adjusted EBITDA
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Nitrogen Fertilizer net income |
$ |
60 |
|
$ |
118 |
|
$ |
162 |
|
$ |
211 |
|
Interest expense, net |
|
7 |
|
|
8 |
|
|
14 |
|
|
18 |
|
Depreciation and amortization |
|
20 |
|
|
21 |
|
|
35 |
|
|
42 |
|
Nitrogen Fertilizer EBITDA and Adjusted
EBITDA |
$ |
87 |
|
$ |
147 |
|
$ |
211 |
|
$ |
271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Debt and Net Debt and Finance
Lease Obligations to EBITDA Exclusive of Nitrogen
Fertilizer
| (in millions) |
Twelve Months EndedJune 30,
2023 |
|
Total debt and finance lease obligations(1) |
$ |
1,591 |
| Less: Nitrogen Fertilizer debt
and finance lease obligations(1) |
|
547 |
|
Total debt and finance lease obligations exclusive of Nitrogen
Fertilizer |
|
1,044 |
| |
|
| EBITDA exclusive of Nitrogen
Fertilizer |
|
852 |
| |
|
| Total debt and finance
lease obligations to EBITDA exclusive of Nitrogen
Fertilizer |
|
1.23 |
| |
|
| Consolidated cash and cash
equivalents |
|
751 |
| Less: Nitrogen Fertilizer cash
and cash equivalents |
|
69 |
|
Cash and cash equivalents exclusive of Nitrogen Fertilizer |
|
682 |
| |
|
| Net debt and finance lease
obligations exclusive of Nitrogen Fertilizer(2) |
|
362 |
| |
|
| Net debt and finance
lease obligations to EBITDA exclusive of Nitrogen
Fertilizer(2) |
$ |
0.42 |
____________________________
(1) Amounts are shown inclusive of the current
portion of long-term debt and finance lease obligations.(2) Net
debt represents total debt and finance lease obligations exclusive
of cash and cash equivalents.
| |
Three Months Ended |
|
Twelve MonthsEnded June
30,2023(1) |
| (in millions) |
September 30, 2022 |
|
December 31, 2022 |
|
March 31, 2023 |
|
June 30, 2023 |
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
80 |
|
|
$ |
172 |
|
$ |
259 |
|
$ |
168 |
|
$ |
679 |
|
Interest expense, net |
|
19 |
|
|
|
18 |
|
|
18 |
|
|
16 |
|
|
71 |
|
Income tax expense |
|
7 |
|
|
|
50 |
|
|
56 |
|
|
44 |
|
|
157 |
|
Depreciation and amortization |
|
75 |
|
|
|
73 |
|
|
68 |
|
|
72 |
|
|
288 |
|
EBITDA |
|
181 |
|
|
|
313 |
|
|
401 |
|
|
300 |
|
|
1,195 |
| Nitrogen Fertilizer |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(20 |
) |
|
|
95 |
|
|
102 |
|
|
60 |
|
|
237 |
|
Interest expense, net |
|
8 |
|
|
|
8 |
|
|
7 |
|
|
7 |
|
|
30 |
|
Depreciation and amortization |
|
22 |
|
|
|
19 |
|
|
15 |
|
|
20 |
|
|
76 |
|
EBITDA |
|
10 |
|
|
|
122 |
|
|
124 |
|
|
87 |
|
|
343 |
| |
|
|
|
|
|
|
|
|
|
| EBITDA exclusive of
Nitrogen Fertilizer |
$ |
171 |
|
|
$ |
191 |
|
$ |
277 |
|
$ |
213 |
|
$ |
852 |
_______________________________
(1) Due to rounding, numbers within this table
may not add or equal to totals presented.
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