CVR Energy, Inc. (“CVR Energy” or the “Company”) (NYSE: CVI) today
announced net income of $353 million, or $3.51 per diluted share,
on net sales of $2.5 billion for the third quarter of 2023,
compared to net income of $93 million, or 92 cents per diluted
share, on net sales of $2.7 billion for the third quarter of 2022.
Adjusted earnings for the third quarter of 2023 was $1.89 per
diluted share compared to adjusted earnings of $1.90 per diluted
share in the third quarter of 2022. Third quarter 2023 EBITDA was
$530 million, compared to third quarter 2022 EBITDA of $181
million. Adjusted EBITDA for the third quarter of 2023 was $313
million, compared to Adjusted EBITDA of $313 million in the third
quarter of 2022.
“CVR Energy achieved solid results for the 2023
third quarter driven by continued strong crack spreads,” said Dave
Lamp, CVR Energy’s Chief Executive Officer. “In addition to our
third quarter 2023 cash dividend of 50 cents, our Board of
Directors was pleased to approve a special dividend of $1.50 per
share, bringing our year-to-date declared dividends to $4.00 per
share.
“CVR Partners posted solid operating results for
the 2023 third quarter driven by safe, reliable operations with a
combined ammonia production rate of 99 percent,” Lamp said. “CVR
Partners also announced a cash distribution of $1.55 per common
unit for the 2023 third quarter.”
Petroleum
The Petroleum Segment reported third quarter
2023 operating income of $431 million on net sales of $2.3 billion,
compared to operating income of $137 million on net sales of $2.5
billion in the third quarter of 2022.
Refining margin per total throughput barrel was
$31.05 in the third quarter of 2023, compared to $16.56 during the
same period in 2022. The increase in refining margin of $300
million was primarily due to lower Renewable Fuel Standard (“RFS”)
related expense and favorable inventory valuations. The Group 3
2-1-1 crack spread decreased by $4.84 per barrel relative to the
third 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 RFS of $90 million, or $4.64 per throughput barrel,
which excludes the RINs’ revaluation benefit impact of $173
million, or $8.88 per total throughput barrel, for the third
quarter of 2023. This is compared to RFS compliance costs of
$98 million, or $5.28 per throughput barrel, which excludes
the RINs’ revaluation expense impact of $38 million, or $2.06 per
total throughput barrel, for the third quarter of 2022. The
decrease in RFS compliance costs in 2023 was primarily related to a
decrease in RIN prices, coupled with an increase in RINs generated
by ethanol and biodiesel blending for the third quarter of 2023
compared to the 2022 period. The favorable RINs’ revaluation in
2023 was a result of a mark-to-market benefit 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 third
quarter 2023 derivative net loss of $98 million, or $5.01 per total
throughput barrel, compared to a derivative net gain of $13
million, or 71 cents per total throughput barrel, for the third
quarter of 2022. Included in this derivative net loss for the third
quarter of 2023 was a $53 million unrealized loss, primarily a
result of crack spread swaps, inventory hedging activity and
Canadian crude forward purchases and sales, compared to a $25
million unrealized gain for the third quarter of 2022. Offsetting
these impacts, crude oil prices increased during the quarter, which
led to a favorable inventory valuation impact of $82 million, or
$4.18 per total throughput barrel, compared to an unfavorable
inventory valuation impact of $107 million, or $5.78 per total
throughput barrel, during the third quarter of 2022.
Third quarter 2023 combined total throughput was
approximately 212,000 bpd, compared to approximately 202,000 bpd of
combined total throughput for the third quarter of 2022.
Nitrogen Fertilizer
The Nitrogen Fertilizer Segment reported
operating income of $8 million on net sales of $131 million for the
third quarter of 2023, compared to an operating loss of $12 million
on net sales of $156 million for the third quarter of 2022.
CVR Partners, LP’s (“CVR Partners”) fertilizer
facilities produced a combined 217,000 tons of ammonia during the
third quarter of 2023, of which 68,000 net tons were available for
sale while the rest was upgraded to other fertilizer products,
including 358,000 tons of urea ammonia nitrate (“UAN”). During the
third quarter 2022, the fertilizer facilities produced 114,000 tons
of ammonia, of which 36,000 net tons were available for sale while
the remainder was upgraded to other fertilizer products, including
184,000 tons of UAN. These increases were due to operating
reliability after completing the planned turnarounds at both
fertilizer facilities during the third quarter of 2022.
Third quarter 2023 average realized gate prices
for UAN showed a reduction over the prior year, down 48 percent to
$223 per ton, and ammonia was down 56 percent over the prior year
to $365 per ton. Average realized gate prices for UAN and
ammonia were $433 and $837 per ton, respectively, for the third
quarter of 2022.
Corporate and Other
The Company reported an income tax expense of
$84 million, or 19.3 percent of income before income taxes, for the
three months ended September 30, 2023, as compared to an income tax
expense of $7 million, or 8.3 percent of income before income
taxes, for the three months ended September 30, 2022. The increases
in income tax expense and effective tax rate were due primarily to
changes in pretax earnings and earnings attributable to
noncontrolling interest.
The renewable diesel unit at the Wynnewood
refinery continued to increase production, with total vegetable oil
throughputs for the third quarter of 2023 of approximately 23.8
million gallons, up from 17.7 million gallons in the third quarter
of 2022. The increase was due primarily to operations at the
renewable diesel unit still ramping up in the third quarter of 2022
as this was the first full quarter of operations after the unit’s
completion in April 2022.
Cash, Debt and Dividend
Consolidated cash and cash equivalents were $889
million at September 30, 2023, an increase of $379 million from
December 31, 2022. Consolidated total debt and finance lease
obligations were $1.6 billion at September 30, 2023, including $547
million held by the Nitrogen Fertilizer Segment.
On September 26, 2023, CVR Partners and
certain of its subsidiaries entered into Amendment No. 1 to the
Credit Agreement (the “ABL Amendment”). The ABL Amendment amended
that certain Credit Agreement, dated as of September 30, 2021 (as
amended, the “Nitrogen Fertilizer ABL”), to, among other things,
(i) increase the aggregate principal amount available under the
credit facility by an additional $15 million to a total of $50
million in the aggregate, with an incremental facility of an
additional $15 million in the aggregate subject to additional
lender commitments and certain other conditions, and (ii) extend
the maturity date by an additional four years to September 26,
2028. The proceeds of the Nitrogen Fertilizer ABL may be used to
fund working capital, capital expenditures and for other general
corporate purposes.
CVR Energy announced a third quarter 2023 cash
dividend of 50 cents per share. In addition, the Company announced
a special dividend of $1.50 per share. The quarterly and special
dividends, as declared by CVR Energy’s Board of Directors, will be
paid on November 20, 2023, to stockholders of record as of
November 13, 2023.
Today, CVR Partners announced that the Board of
Directors of its general partner declared a third quarter 2023 cash
distribution of $1.55 per common unit, which will be paid on
November 20, 2023, to common unitholders of record as of
November 13, 2023.
Third Quarter
2023 Earnings Conference Call
CVR Energy previously announced that it will
host its third quarter 2023 Earnings Conference Call on Tuesday,
October 31, 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 third 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/ez75egze. A repeat of the call
also can be accessed for 14 days by dialing (877) 660-6853,
conference ID 13741665.
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; net income and sales; adjusted earnings including the
drivers thereof; EBITDA and Adjusted EBITDA; operating income; net
sales; refining margin and the drivers thereof; RFS expense;
inventory valuation impacts; crack spreads, including the
tightening of distillate cracks; 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; throughput rates, including factors impacting same;
crude oil supply; 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; any
decision to return a unit back to hydrocarbon processing following
renewable conversion; cash and cash equivalent levels; credit
facility availability; continued safe and reliable operations;
operating expenses, capital expenditures, depreciation and
amortization and turnaround expense; the expected timing and
completion of turnaround projects; renewables initiatives;
conversion of hydrocrackers at Coffeyville and/or feed pretreaters,
including the completion, operation, capacities, timing, costs,
optionality and benefits thereof; carbon capture and
decarbonization initiatives; labor supply shortages, labor
difficulties, labor disputes or strikes; utilization rates; global
fertilizer industry conditions; crop and planting conditions;
natural gas and global energy costs; 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; our controlling shareholder’s
intention regarding ownership of our common stock, including any
dispositions of our common stock; 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 and Israel/Hamas conflicts;
impacts of plant outages and weather events on throughput volume;
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; our ability
to refinance our debt on acceptable terms or at all; 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 September 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.
Factors Affecting Comparability of Our
Financial Results
Petroleum Segment
Our results of operations for the periods
presented may not be comparable with prior periods or to our
results of operations in the future due to capitalized expenditures
as part of planned turnarounds. Total capitalized expenditures were
$2 million and $4 million during the three months ended September
30, 2023 and 2022, respectively, and $53 million and $73 million
during the nine months ended September 30, 2023 and 2022,
respectively. The next planned turnarounds are currently scheduled
to take place in the spring of 2024 at the Wynnewood Refinery and
in 2025 at the Coffeyville Refinery.
Nitrogen Fertilizer Segment
Our results of operations for the periods
presented may not be comparable with prior periods or to our
results of operations in the future due to expenses incurred as
part of planned turnarounds. We incurred turnaround expenses of
$1 million and $31 million during the three months ended
September 30, 2023 and 2022, respectively, and $2 million and
$33 million during the nine months ended September 30, 2023
and 2022, respectively. The next planned turnarounds are currently
scheduled to take place in 2025 at the Coffeyville Fertilizer
Facility and in 2026 at the East Dubuque Fertilizer Facility.
| |
|
CVR Energy, Inc. (all information in this release
is unaudited) |
| |
|
Consolidated Statement of Operations Data |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions, except per share
data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net sales |
$ |
2,522 |
|
|
$ |
2,699 |
|
|
$ |
7,045 |
|
|
$ |
8,216 |
|
| Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
1,787 |
|
|
|
2,267 |
|
|
|
5,211 |
|
|
|
6,619 |
|
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
170 |
|
|
|
218 |
|
|
|
503 |
|
|
|
545 |
|
|
Depreciation and amortization |
|
80 |
|
|
|
74 |
|
|
|
217 |
|
|
|
210 |
|
|
Cost of sales |
|
2,037 |
|
|
|
2,559 |
|
|
|
5,931 |
|
|
|
7,374 |
|
| Selling, general and
administrative expenses (exclusive of depreciation and
amortization) |
|
38 |
|
|
|
35 |
|
|
|
109 |
|
|
|
110 |
|
| Depreciation and
amortization |
|
1 |
|
|
|
1 |
|
|
|
4 |
|
|
|
5 |
|
| Loss on asset disposal |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
Operating income |
|
445 |
|
|
|
103 |
|
|
|
1,000 |
|
|
|
726 |
|
| Other (expense) income: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
(11 |
) |
|
|
(19 |
) |
|
|
(44 |
) |
|
|
(67 |
) |
|
Other income (expense), net |
|
4 |
|
|
|
3 |
|
|
|
10 |
|
|
|
(81 |
) |
|
Income before income tax expense |
|
438 |
|
|
|
87 |
|
|
|
966 |
|
|
|
578 |
|
| Income tax expense |
|
84 |
|
|
|
7 |
|
|
|
185 |
|
|
|
106 |
|
|
Net income |
|
354 |
|
|
|
80 |
|
|
|
781 |
|
|
|
472 |
|
| Less: Net income (loss)
attributable to noncontrolling interest |
|
1 |
|
|
|
(13 |
) |
|
|
103 |
|
|
|
121 |
|
|
Net income attributable to CVR Energy
stockholders |
$ |
353 |
|
|
$ |
93 |
|
|
$ |
678 |
|
|
$ |
351 |
|
| |
|
|
|
|
|
|
|
|
Basic and diluted earnings per share |
$ |
3.51 |
|
|
$ |
0.92 |
|
|
$ |
6.74 |
|
|
$ |
3.49 |
|
|
Dividends declared per share |
$ |
1.50 |
|
|
$ |
3.00 |
|
|
$ |
2.50 |
|
|
$ |
3.40 |
|
| |
|
|
|
|
|
|
|
| Adjusted earnings per
share |
$ |
1.89 |
|
|
$ |
1.90 |
|
|
$ |
4.98 |
|
|
$ |
4.37 |
|
| EBITDA* |
$ |
530 |
|
|
$ |
181 |
|
|
$ |
1,231 |
|
|
$ |
860 |
|
| Adjusted EBITDA * |
$ |
313 |
|
|
$ |
313 |
|
|
$ |
994 |
|
|
$ |
979 |
|
| |
|
|
|
|
|
|
|
| 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) |
September 30, 2023 |
|
December 31, 2022 |
|
Cash and cash equivalents |
$ |
889 |
|
$ |
510 |
|
Working capital |
|
576 |
|
|
154 |
|
Total assets |
|
4,421 |
|
|
4,119 |
|
Total debt and finance lease obligations, including current
portion |
|
1,590 |
|
|
1,591 |
|
Total liabilities |
|
3,269 |
|
|
3,328 |
|
Total CVR stockholders’ equity |
|
957 |
|
|
531 |
| |
| Selected
Cash Flow Data |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Net cash provided by (used
in): |
|
|
|
|
|
|
|
|
Operating activities |
$ |
370 |
|
|
$ |
156 |
|
|
$ |
984 |
|
|
$ |
868 |
|
|
Investing activities |
|
(51 |
) |
|
|
(61 |
) |
|
|
(181 |
) |
|
|
(217 |
) |
|
Financing activities |
|
(181 |
) |
|
|
(370 |
) |
|
|
(424 |
) |
|
|
(543 |
) |
|
Net increase (decrease) in cash and cash equivalents and
restricted cash |
$ |
138 |
|
|
$ |
(275 |
) |
|
$ |
379 |
|
|
$ |
108 |
|
| |
|
|
|
|
|
|
|
| Free cash flow* |
$ |
318 |
|
|
$ |
93 |
|
|
$ |
802 |
|
|
$ |
649 |
|
__________________________* See “Non-GAAP
Reconciliations” section below.
| |
| Selected
Segment Data |
| |
| |
Three Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2023 |
| (in millions) |
Petroleum |
|
NitrogenFertilizer |
|
Consolidated |
|
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Net sales |
$ |
2,298 |
|
$ |
131 |
|
$ |
2,522 |
|
$ |
6,290 |
|
$ |
540 |
|
$ |
7,045 |
| Operating income |
|
431 |
|
|
8 |
|
|
445 |
|
|
838 |
|
|
184 |
|
|
1,000 |
| Net income |
|
460 |
|
|
1 |
|
|
354 |
|
|
913 |
|
|
162 |
|
|
781 |
| EBITDA* |
|
484 |
|
|
32 |
|
|
530 |
|
|
989 |
|
|
243 |
|
|
1,231 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
$ |
20 |
|
$ |
8 |
|
$ |
30 |
|
$ |
70 |
|
$ |
17 |
|
$ |
92 |
|
Growth capital expenditures |
|
6 |
|
|
— |
|
|
21 |
|
|
9 |
|
|
1 |
|
|
56 |
|
Total capital expenditures |
$ |
26 |
|
$ |
8 |
|
$ |
51 |
|
$ |
79 |
|
$ |
18 |
|
$ |
148 |
| |
Three Months Ended September 30, 2022 |
|
Nine Months Ended September 30, 2022 |
| (in millions) |
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Net sales |
$ |
2,474 |
|
$ |
156 |
|
|
$ |
2,699 |
|
$ |
7,497 |
|
$ |
623 |
|
$ |
8,216 |
| Operating income |
|
137 |
|
|
(12 |
) |
|
|
103 |
|
|
564 |
|
|
218 |
|
|
726 |
| Net income |
|
152 |
|
|
(20 |
) |
|
|
80 |
|
|
584 |
|
|
191 |
|
|
472 |
| EBITDA* |
|
186 |
|
|
10 |
|
|
|
181 |
|
|
700 |
|
|
281 |
|
|
860 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital expenditures (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance capital expenditures |
$ |
22 |
|
$ |
25 |
|
|
$ |
52 |
|
$ |
59 |
|
$ |
38 |
|
$ |
103 |
|
Growth capital expenditures |
|
1 |
|
|
— |
|
|
|
16 |
|
|
2 |
|
|
1 |
|
|
56 |
|
Total capital expenditures |
$ |
23 |
|
$ |
25 |
|
|
$ |
68 |
|
$ |
61 |
|
$ |
38 |
|
$ |
158 |
__________________________* See “Non-GAAP
Reconciliations” section below.(1) Capital
expenditures are shown exclusive of capitalized turnaround
expenditures.
| |
| Selected
Balance Sheet Data |
| |
| |
September 30, 2023 |
|
December 31, 2022 |
| (in millions) |
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Petroleum |
|
Nitrogen Fertilizer |
|
Consolidated |
|
Cash and cash equivalents (1) |
$ |
618 |
|
$ |
89 |
|
$ |
889 |
|
$ |
235 |
|
$ |
86 |
|
$ |
510 |
| Total assets |
|
4,635 |
|
|
1,019 |
|
|
4,421 |
|
|
4,354 |
|
|
1,100 |
|
|
4,119 |
| Total debt and finance lease
obligations, including current portion (2) |
|
46 |
|
|
547 |
|
|
1,590 |
|
|
48 |
|
|
547 |
|
|
1,591 |
__________________________(1) Corporate cash and
cash equivalents consisted of $182 million and $189 million at
September 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 September 30, 2023 and December 31,
2022, respectively.
| |
| Petroleum
Segment |
| |
| Key
Operating Metrics per Total Throughput Barrel |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
(in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Refining margin * |
$ |
31.05 |
|
$ |
16.56 |
|
$ |
24.33 |
|
$ |
19.82 |
| Refining margin adjusted for
inventory valuation impacts * |
|
26.87 |
|
|
22.34 |
|
|
23.46 |
|
|
18.66 |
| Direct operating expenses
* |
|
5.39 |
|
|
5.53 |
|
|
5.58 |
|
|
5.74 |
__________________________* See “Non-GAAP Reconciliations”
section below.
| |
| Throughput
Data by Refinery |
| |
|
|
|
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
(in bpd) |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Coffeyville |
|
|
|
|
|
|
|
|
Regional crude |
68,176 |
|
60,762 |
|
62,442 |
|
55,675 |
|
WTI |
27,837 |
|
30,261 |
|
30,161 |
|
37,465 |
|
WTL |
— |
|
312 |
|
— |
|
544 |
|
WTS |
— |
|
1,222 |
|
— |
|
412 |
|
Midland WTI |
— |
|
— |
|
— |
|
858 |
|
Condensate |
7,401 |
|
10,674 |
|
7,718 |
|
10,871 |
|
Heavy Canadian |
2,731 |
|
7,372 |
|
2,307 |
|
6,869 |
|
DJ Basin |
20,504 |
|
13,526 |
|
17,006 |
|
14,092 |
|
Bakken |
962 |
|
— |
|
324 |
|
— |
|
Other feedstocks and blendstocks |
12,260 |
|
8,846 |
|
12,538 |
|
9,811 |
| Wynnewood |
|
|
|
|
|
|
|
|
Regional crude |
53,554 |
|
45,840 |
|
51,519 |
|
45,553 |
|
WTL |
— |
|
4,915 |
|
1,639 |
|
2,323 |
|
Midland WTI |
543 |
|
— |
|
183 |
|
539 |
|
WTS |
— |
|
— |
|
— |
|
191 |
|
Condensate |
15,780 |
|
15,313 |
|
14,567 |
|
12,121 |
|
Other feedstocks and blendstocks |
2,672 |
|
2,614 |
|
2,984 |
|
2,774 |
|
Total throughput |
212,420 |
|
201,657 |
|
203,388 |
|
200,098 |
| |
|
Production Data by Refinery |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
(in bpd) |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Coffeyville |
|
|
|
|
|
|
|
|
Gasoline |
69,833 |
|
|
67,048 |
|
|
67,463 |
|
|
71,005 |
|
|
Distillate |
60,661 |
|
|
56,848 |
|
|
56,311 |
|
|
56,768 |
|
|
Other liquid products |
4,463 |
|
|
4,832 |
|
|
4,461 |
|
|
5,183 |
|
|
Solids |
4,416 |
|
|
4,741 |
|
|
3,896 |
|
|
4,482 |
|
| Wynnewood |
|
|
|
|
|
|
|
|
Gasoline |
36,997 |
|
|
36,423 |
|
|
37,656 |
|
|
33,040 |
|
|
Distillate |
25,615 |
|
|
24,605 |
|
|
24,825 |
|
|
23,154 |
|
|
Other liquid products |
9,038 |
|
|
6,264 |
|
|
7,355 |
|
|
5,436 |
|
|
Solids |
9 |
|
|
8 |
|
|
10 |
|
|
12 |
|
|
Total production |
211,032 |
|
|
200,769 |
|
|
201,977 |
|
|
199,080 |
|
| |
|
|
|
|
|
|
|
| Light product yield (as % of
crude throughput) (1) |
97.8 |
% |
|
97.2 |
% |
|
99.1 |
% |
|
98.1 |
% |
| Liquid volume yield (as % of
total throughput) (2) |
97.3 |
% |
|
97.2 |
% |
|
97.4 |
% |
|
97.2 |
% |
| Distillate yield (as % of
crude throughput) (3) |
43.7 |
% |
|
42.8 |
% |
|
43.2 |
% |
|
42.6 |
% |
__________________________(1) Total Gasoline
and Distillate divided by total Regional crude, WTI, WTL, Midland
WTI, WTS, Condensate, Heavy Canadian, DJ Basin, and Bakken
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, DJ Basin, and Bakken throughput.
| |
| Key
Market Indicators |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
West Texas Intermediate (WTI) NYMEX |
$ |
82.22 |
|
|
$ |
91.43 |
|
|
$ |
77.25 |
|
|
$ |
98.35 |
|
| Crude Oil Differentials to
WTI: |
|
|
|
|
|
|
|
|
Brent |
|
3.71 |
|
|
|
6.27 |
|
|
|
4.70 |
|
|
|
4.14 |
|
|
WCS (heavy sour) |
|
(15.91 |
) |
|
|
(20.50 |
) |
|
|
(16.33 |
) |
|
|
(16.25 |
) |
|
Condensate |
|
(0.22 |
) |
|
|
0.03 |
|
|
|
(0.18 |
) |
|
|
(0.16 |
) |
|
Midland Cushing |
|
1.53 |
|
|
|
1.98 |
|
|
|
1.32 |
|
|
|
1.52 |
|
| NYMEX Crack Spreads: |
|
|
|
|
|
|
|
|
Gasoline |
|
32.40 |
|
|
|
30.07 |
|
|
|
32.61 |
|
|
|
33.31 |
|
|
Heating Oil |
|
45.20 |
|
|
|
57.56 |
|
|
|
40.35 |
|
|
|
51.00 |
|
|
NYMEX 2-1-1 Crack Spread |
|
38.80 |
|
|
|
43.82 |
|
|
|
36.48 |
|
|
|
42.16 |
|
| PADD II Group 3 Product
Basis: |
|
|
|
|
|
|
|
|
Gasoline |
|
0.84 |
|
|
|
(2.75 |
) |
|
|
(2.39 |
) |
|
|
(6.49 |
) |
|
Ultra-Low Sulfur Diesel |
|
(0.25 |
) |
|
|
3.01 |
|
|
|
(0.38 |
) |
|
|
(1.06 |
) |
| PADD II Group 3 Product Crack
Spread: |
|
|
|
|
|
|
|
|
Gasoline |
|
33.24 |
|
|
|
27.32 |
|
|
|
30.22 |
|
|
|
26.82 |
|
|
Ultra-Low Sulfur Diesel |
|
44.96 |
|
|
|
60.57 |
|
|
|
39.97 |
|
|
|
49.95 |
|
| PADD II Group 3 2-1-1 |
|
39.10 |
|
|
|
43.94 |
|
|
|
35.10 |
|
|
|
38.38 |
|
| |
| Nitrogen
Fertilizer Segment: |
| |
| Ammonia
Utilization Rates (1) |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
(percent of capacity utilization) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Consolidated |
99 |
% |
|
52 |
% |
|
101 |
% |
|
76 |
% |
__________________________(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 nine months ended September 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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
| Consolidated sales (thousand
tons): |
|
|
|
|
|
|
|
|
Ammonia |
|
62 |
|
|
27 |
|
|
183 |
|
|
118 |
|
UAN |
|
387 |
|
|
275 |
|
|
1,075 |
|
|
884 |
| |
|
|
|
|
|
|
|
| Consolidated product pricing
at gate (dollars per ton):(1) |
|
|
|
|
|
|
|
|
Ammonia |
$ |
365 |
|
$ |
837 |
|
$ |
633 |
|
$ |
1,062 |
|
UAN |
|
223 |
|
|
433 |
|
|
330 |
|
|
496 |
| |
|
|
|
|
|
|
|
| Consolidated production volume
(thousand tons): |
|
|
|
|
|
|
|
|
Ammonia (gross produced) (2) |
|
217 |
|
|
114 |
|
|
660 |
|
|
494 |
|
Ammonia (net available for sale) (2) |
|
68 |
|
|
36 |
|
|
200 |
|
|
137 |
|
UAN |
|
358 |
|
|
184 |
|
|
1,063 |
|
|
832 |
| |
|
|
|
|
|
|
|
| Feedstock: |
|
|
|
|
|
|
|
|
Petroleum coke used in production (thousand tons) |
|
131 |
|
|
74 |
|
|
386 |
|
|
298 |
|
Petroleum coke used in production (dollars per ton) |
$ |
84.09 |
|
$ |
51.54 |
|
$ |
78.49 |
|
$ |
52.68 |
|
Natural gas used in production (thousands of MMBtu) (3) |
|
2,133 |
|
|
1,120 |
|
|
6,429 |
|
|
4,817 |
|
Natural gas used in production (dollars per MMBtu) (3) |
$ |
2.67 |
|
$ |
7.19 |
|
$ |
3.57 |
|
$ |
6.65 |
|
Natural gas in cost of materials and other (thousands of MMBtu)
(3) |
|
2,636 |
|
|
1,330 |
|
|
6,354 |
|
|
4,566 |
|
Natural gas in cost of materials and other (dollars per MMBtu)
(3) |
$ |
2.51 |
|
$ |
7.84 |
|
$ |
4.21 |
|
$ |
6.40 |
__________________________(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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Ammonia — Southern plains (dollars per ton) |
$ |
429 |
|
$ |
934 |
|
$ |
533 |
|
$ |
1,149 |
| Ammonia — Corn belt (dollars
per ton) |
|
501 |
|
|
1,048 |
|
|
621 |
|
|
1,275 |
| UAN — Corn belt (dollars per
ton) |
|
272 |
|
|
496 |
|
|
314 |
|
|
581 |
| |
|
|
|
|
|
|
|
| Natural gas NYMEX (dollars per
MMBtu) |
$ |
2.66 |
|
$ |
7.95 |
|
$ |
2.58 |
|
$ |
6.70 |
| |
|
|
|
|
|
|
|
|
|
|
|
Q4 2023 Outlook
The table below summarizes our outlook for
certain operational statistics and financial information for the
fourth quarter of 2023. See “Forward-Looking Statements” above.
| |
Q4 2023 |
| |
Low |
|
High |
| Petroleum |
|
|
|
|
Total throughput (bpd) |
|
205,000 |
|
|
|
220,000 |
|
|
Direct operating expenses (in millions) (1) |
$ |
95 |
|
|
$ |
105 |
|
| |
|
|
|
| Renewables (2) |
|
|
|
|
Total throughput (in millions of gallons) |
|
15 |
|
|
|
20 |
|
|
Direct operating expenses (in millions) (1) |
$ |
6 |
|
|
$ |
8 |
|
| |
|
|
|
| Nitrogen Fertilizer |
|
|
|
|
Ammonia utilization rates |
|
|
|
|
Consolidated |
|
90 |
% |
|
|
95 |
% |
|
Coffeyville Fertilizer Facility |
|
95 |
% |
|
|
100 |
% |
|
East Dubuque Fertilizer Facility |
|
85 |
% |
|
|
90 |
% |
|
Direct operating expenses (in millions) (1) |
$ |
55 |
|
|
$ |
60 |
|
| |
|
|
|
| Capital Expenditures (in
millions) (3) |
|
|
|
|
Petroleum |
$ |
40 |
|
|
$ |
45 |
|
|
Renewables (2) |
|
13 |
|
|
|
17 |
|
|
Nitrogen Fertilizer |
|
10 |
|
|
|
15 |
|
|
Other |
|
2 |
|
|
|
4 |
|
|
Total capital expenditures |
$ |
65 |
|
|
$ |
81 |
|
__________________________(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 September 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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
|
2022 |
|
|
Net income |
$ |
354 |
|
|
$ |
80 |
|
|
$ |
781 |
|
|
$ |
472 |
|
|
Interest expense, net |
|
11 |
|
|
|
19 |
|
|
|
44 |
|
|
|
67 |
|
|
Income tax expense |
|
84 |
|
|
|
7 |
|
|
|
185 |
|
|
|
106 |
|
|
Depreciation and amortization |
|
81 |
|
|
|
75 |
|
|
|
221 |
|
|
|
215 |
|
|
EBITDA |
|
530 |
|
|
|
181 |
|
|
|
1,231 |
|
|
|
860 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability |
|
(174 |
) |
|
|
38 |
|
|
|
(228 |
) |
|
|
108 |
|
|
Unrealized loss (gain) on derivatives, net |
|
48 |
|
|
|
(20 |
) |
|
|
35 |
|
|
|
(5 |
) |
|
Inventory valuation impacts, (favorable) unfavorable |
|
(91 |
) |
|
|
114 |
|
|
|
(44 |
) |
|
|
(63 |
) |
|
Call Option Lawsuits settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
79 |
|
|
Adjusted EBITDA |
$ |
313 |
|
|
$ |
313 |
|
|
$ |
994 |
|
|
$ |
979 |
|
| |
|
Reconciliation of Basic and Diluted
Earnings per Share to Adjusted
Earnings per Share |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Basic and diluted earnings per share |
$ |
3.51 |
|
|
$ |
0.92 |
|
|
$ |
6.74 |
|
|
$ |
3.49 |
|
| Adjustments: (1) |
|
|
|
|
|
|
|
|
Revaluation of RFS liability |
|
(1.30 |
) |
|
|
0.28 |
|
|
|
(1.69 |
) |
|
|
0.80 |
|
|
Unrealized loss (gain) on derivatives, net |
|
0.36 |
|
|
|
(0.15 |
) |
|
|
0.26 |
|
|
|
(0.04 |
) |
|
Inventory valuation impacts, (favorable) unfavorable |
|
(0.68 |
) |
|
|
0.85 |
|
|
|
(0.33 |
) |
|
|
(0.46 |
) |
|
Call Option Lawsuits settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.58 |
|
|
Adjusted earnings per share |
$ |
1.89 |
|
|
$ |
1.90 |
|
|
$ |
4.98 |
|
|
$ |
4.37 |
|
__________________________(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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net cash provided by operating activities |
$ |
370 |
|
|
$ |
156 |
|
|
$ |
984 |
|
|
$ |
868 |
|
| Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
(50 |
) |
|
|
(57 |
) |
|
|
(150 |
) |
|
|
(145 |
) |
|
Capitalized turnaround expenditures |
|
(3 |
) |
|
|
(6 |
) |
|
|
(53 |
) |
|
|
(74 |
) |
|
Return on equity method investment |
|
1 |
|
|
|
— |
|
|
|
21 |
|
|
|
— |
|
|
Free cash flow |
$ |
318 |
|
|
$ |
93 |
|
|
$ |
802 |
|
|
$ |
649 |
|
| |
|
Reconciliation of Petroleum
Segment Net Income to EBITDA and
Adjusted EBITDA |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Petroleum net income |
$ |
460 |
|
|
$ |
152 |
|
|
$ |
913 |
|
|
$ |
584 |
|
|
Interest income, net |
|
(26 |
) |
|
|
(13 |
) |
|
|
(65 |
) |
|
|
(24 |
) |
|
Depreciation and amortization |
|
50 |
|
|
|
47 |
|
|
|
141 |
|
|
|
140 |
|
|
Petroleum EBITDA |
|
484 |
|
|
|
186 |
|
|
|
989 |
|
|
|
700 |
|
| Adjustments: |
|
|
|
|
|
|
|
|
Revaluation of RFS liability |
|
(174 |
) |
|
|
38 |
|
|
|
(228 |
) |
|
|
108 |
|
|
Unrealized loss (gain) on derivatives, net |
|
53 |
|
|
|
(25 |
) |
|
|
37 |
|
|
|
(8 |
) |
|
Inventory valuation impacts, (favorable) unfavorable (1) |
|
(82 |
) |
|
|
107 |
|
|
|
(48 |
) |
|
|
(63 |
) |
|
Petroleum Adjusted EBITDA |
$ |
281 |
|
|
$ |
306 |
|
|
$ |
750 |
|
|
$ |
737 |
|
| |
|
Reconciliation of Petroleum
Segment Gross Profit to Refining
Margin and Refining Margin Adjusted for Inventory Valuation
Impacts |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Net sales |
$ |
2,298 |
|
|
$ |
2,474 |
|
|
$ |
6,290 |
|
|
$ |
7,497 |
|
| Less: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
(1,691 |
) |
|
|
(2,167 |
) |
|
|
(4,939 |
) |
|
|
(6,414 |
) |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
(105 |
) |
|
|
(103 |
) |
|
|
(310 |
) |
|
|
(314 |
) |
|
Depreciation and amortization |
|
(50 |
) |
|
|
(47 |
) |
|
|
(141 |
) |
|
|
(140 |
) |
|
Gross profit |
|
452 |
|
|
|
157 |
|
|
|
900 |
|
|
|
629 |
|
| Add: |
|
|
|
|
|
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization) |
|
105 |
|
|
|
103 |
|
|
|
310 |
|
|
|
314 |
|
|
Depreciation and amortization |
|
50 |
|
|
|
47 |
|
|
|
141 |
|
|
|
140 |
|
|
Refining margin |
|
607 |
|
|
|
307 |
|
|
|
1,351 |
|
|
|
1,083 |
|
| Inventory valuation impacts,
(favorable) unfavorable (1) |
|
(82 |
) |
|
|
107 |
|
|
|
(48 |
) |
|
|
(63 |
) |
|
Refining margin adjusted for inventory valuation
impacts |
$ |
525 |
|
|
$ |
414 |
|
|
$ |
1,303 |
|
|
$ |
1,020 |
|
__________________________(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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
| Total throughput barrels per
day |
212,420 |
|
201,657 |
|
203,388 |
|
200,098 |
| Days in the period |
92 |
|
92 |
|
273 |
|
273 |
|
Total throughput barrels |
19,542,631 |
|
18,552,434 |
|
55,524,925 |
|
54,626,789 |
| |
|
Reconciliation of Petroleum
Segment Refining Margin per Total Throughput
Barrel |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
(in millions, except for per throughput barrel data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Refining margin |
$ |
607 |
|
$ |
307 |
|
$ |
1,351 |
|
$ |
1,083 |
| Divided by: total throughput
barrels |
|
20 |
|
|
19 |
|
|
56 |
|
|
55 |
|
Refining margin per total throughput barrel |
$ |
31.05 |
|
$ |
16.56 |
|
$ |
24.33 |
|
$ |
19.82 |
| |
|
Reconciliation of Petroleum
Segment Refining Margin Adjusted for Inventory
Valuation Impacts per Total Throughput Barrel |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions, except for
throughput barrel data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Refining margin adjusted for inventory valuation impacts |
$ |
525 |
|
$ |
414 |
|
$ |
1,303 |
|
$ |
1,020 |
| Divided by: total throughput
barrels |
|
20 |
|
|
19 |
|
|
56 |
|
|
55 |
|
Refining margin adjusted for inventory valuation impacts
per total throughput barrel |
$ |
26.87 |
|
$ |
22.34 |
|
$ |
23.46 |
|
$ |
18.66 |
| |
|
Reconciliation of Petroleum
Segment Direct Operating Expenses per Total
Throughput Barrel |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
| (in millions, except for
throughput barrel data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Direct operating expenses (exclusive of depreciation and
amortization) |
$ |
105 |
|
$ |
103 |
|
$ |
310 |
|
$ |
314 |
| Divided by: total throughput
barrels |
|
20 |
|
|
19 |
|
|
56 |
|
|
55 |
|
Direct operating expenses per total throughput
barrel |
$ |
5.39 |
|
$ |
5.53 |
|
$ |
5.58 |
|
$ |
5.74 |
| |
|
Reconciliation of Nitrogen Fertilizer
Segment Net Income (Loss) to
EBITDA and Adjusted EBITDA |
| |
| |
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
(in millions) |
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
| Nitrogen Fertilizer
net income (loss) |
$ |
1 |
|
$ |
(20 |
) |
|
$ |
162 |
|
$ |
191 |
|
Interest expense, net |
|
8 |
|
|
8 |
|
|
|
22 |
|
|
26 |
|
Depreciation and amortization |
|
23 |
|
|
22 |
|
|
|
59 |
|
|
64 |
|
Nitrogen Fertilizer EBITDA and Adjusted
EBITDA |
$ |
32 |
|
$ |
10 |
|
|
$ |
243 |
|
$ |
281 |
| |
|
Reconciliation of Total Debt and Net Debt and Finance Lease
Obligations to EBITDA Exclusive of Nitrogen
Fertilizer |
| |
| (in millions) |
Twelve Months Ended September 30,
2023 |
|
Total debt and finance lease obligations (1) |
$ |
1,590 |
| Less: Nitrogen Fertilizer debt
and finance lease obligations (1) |
|
547 |
|
Total debt and finance lease obligations exclusive of Nitrogen
Fertilizer |
|
1,043 |
| |
|
| EBITDA exclusive of Nitrogen
Fertilizer |
|
1,179 |
| |
|
| Total debt and finance
lease obligations to EBITDA exclusive of Nitrogen
Fertilizer |
|
0.88 |
| |
|
| Consolidated cash and cash
equivalents |
|
889 |
| Less: Nitrogen Fertilizer cash
and cash equivalents |
|
89 |
|
Cash and cash equivalents exclusive of Nitrogen Fertilizer |
|
800 |
| |
|
| Net debt and finance lease
obligations exclusive of Nitrogen Fertilizer (2) |
|
243 |
| |
|
| Net debt and finance
lease obligations to EBITDA exclusive of Nitrogen
Fertilizer (2) |
$ |
0.21 |
__________________________(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 Months Ended September 30,
2023 (1) |
| (in millions) |
|
December 31, 2022 |
|
March 31, 2023 |
|
June 30, 2023 |
|
September 30, 2023 |
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
172 |
|
$ |
259 |
|
$ |
168 |
|
$ |
354 |
|
$ |
953 |
|
Interest expense, net |
|
|
18 |
|
|
18 |
|
|
16 |
|
|
11 |
|
|
63 |
|
Income tax expense |
|
|
50 |
|
|
56 |
|
|
44 |
|
|
84 |
|
|
234 |
|
Depreciation and amortization |
|
|
73 |
|
|
68 |
|
|
72 |
|
|
81 |
|
|
294 |
|
EBITDA |
|
|
313 |
|
|
401 |
|
|
300 |
|
|
530 |
|
|
1,544 |
| Nitrogen Fertilizer |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
95 |
|
|
102 |
|
|
60 |
|
|
1 |
|
|
258 |
|
Interest expense, net |
|
|
8 |
|
|
7 |
|
|
7 |
|
|
8 |
|
|
30 |
|
Depreciation and amortization |
|
|
19 |
|
|
15 |
|
|
20 |
|
|
23 |
|
|
77 |
|
EBITDA |
|
|
122 |
|
|
124 |
|
|
87 |
|
|
32 |
|
|
365 |
| |
|
|
|
|
|
|
|
|
|
|
| EBITDA exclusive of
Nitrogen Fertilizer |
|
$ |
191 |
|
$ |
277 |
|
$ |
213 |
|
$ |
498 |
|
$ |
1,179 |
__________________________(1) Due to rounding,
numbers within this table may not add or equal to totals
presented.
CVR Energy (NYSE:CVI)
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