SUGAR LAND, Texas, Feb. 27, 2012 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today reported record net income of $345.8 million for the full year of 2011, or
$3.94 per fully diluted share, and
net income of $65.9 million for the
fourth quarter 2011, or 75 cents per
fully diluted share, on full year net sales of $5,029.1 million and fourth quarter net sales of
$1,062.2 million.
(Logo:
http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
The 2011 results compare to net income for the full year 2010 of
$14.3 million, or 16 cents per fully diluted share, and fourth
quarter 2010 net income of $2.3
million, or 3 cents per fully
diluted share. The 2010 results came on net sales of $4,079.8 million for the full year and net sales
of $1,148.2 million in the fourth
quarter.
Operating income for the full year in 2011 was $566.6 million, compared to $93.1 million in 2010. The company reported
a fourth quarter 2011 operating income of $26.9 million compared to operating income of
$34.8 million for the fourth quarter
2010.
"CVR Energy turned in exceptional financial performance for
2011, far eclipsing the results of any previous year," said Chief
Executive Officer Jack Lipinski.
"The favorable crack spread coupled with our Midcontinent
location allowed us to take advantage of the cost differential
between Brent and West Texas Intermediate crudes. These results
were achieved despite the expense and lost production from our
planned major turnaround at the refinery in Coffeyville during the fourth quarter.
"2011 was a watershed year for us in many ways," he said. "We
completed an initial public offering of our nitrogen fertilizer
business, placing it in a publicly traded master limited
partnership that provided a way to recognize the value of that
business. We also completed acquisition of Gary-Williams
Energy, adding a 70,000 bpd refinery at Wynnewood, Okla., and related assets that will
be accretive to earnings while diversifying our asset base.
"We are proud to be the leader among our peers for returning
value to our shareholders, and we remain committed to finding ways
to deliver even greater shareholder value now and in the future,"
Lipinski added.
Several items affected full-year and fourth quarter net income
and earnings per share. For the full year, these items
included favorable impacts, net of taxes, from first-in, first-out
(FIFO) accounting of $15.5 million
for 2011 compared to $19.1 million
for 2010; expenses for share-based compensation, net of taxes,
amounting to $18.6 million for 2011
compared to $30.1 million in 2010;
major scheduled turnaround expense, net of taxes, of $40.2 million in 2011 versus $2.9 million in 2010; an unrealized gain on
derivatives of $51.7 million, net of
taxes, in 2011 compared to an unrealized loss of $1.3 million for 2010; and expenses in 2011
associated with the acquisition of Gary-Williams of $5.5
million, net of taxes.
For the fourth quarter 2011, the impact from first-in, first-out
(FIFO) accounting, net of taxes, was a favorable $21.3 million compared to a favorable
$17.8 million in 2010; expenses for
share-based compensation, net of taxes, amounted to of $2.1 million in 2011 versus $23.4 million for the same period in 2010; major
scheduled turnaround expense, net of taxes, was $32.8 million in the fourth period 2011 versus
$2.5 million in the same period 2010;
and an unrealized gain on derivatives of $55.8 million, net of taxes, compared to an
unrealized loss of $1.8 million in
the fourth quarter of 2010.
In addition, the company recorded in 2011 a loss of $1.3 million for extinguishment of debt, net of
taxes, compared to a loss of $10.0
million, net of taxes, for the same category in 2010.
CVR Energy also had in 2011 a $1.5
million loss, net of taxes, on disposition of assets
compared to a similar $1.6 million
loss, net of taxes, in 2010.
Revised to include the above items net of tax impact, adjusted
net income for the full year 2011 was $345.7
million, or $3.94 per fully
diluted share, and adjusted net income for the fourth quarter 2011
was $29.5 million, or 34 cents per fully diluted share. The 2011
results compare to adjusted net income of $41.1 million, or 47
cents per fully diluted share, for the full year 2010 and
adjusted net income of $14.0 million,
or 16 cents per diluted share, for
the fourth quarter 2010.
Petroleum Business
The petroleum business reported operating income for the full
year 2011 of $465.7 million on net
sales of $4,751.8 million and for the
fourth quarter 2011 posted an operating loss of $3.3 million on net sales of $979.5 million. This compares to operating
income of $104.6 million for the full
year 2010 on net sales of $3,903.8
million and operating income in the fourth quarter 2010 of
$60.4 million on net sales of
$1,109.6 million.
The 2011 fourth quarter operating income included major
scheduled turnaround expenses of $54.1
million compared to expenses of $0.7
million for the same item in the fourth quarter in 2010.
Adjusted petroleum EBITDA was $580.9
million for the full year 2011 versus $154.7 million for 2010. For the fourth
quarter, adjusted petroleum EBITDA was $47.6
million versus $51.1 million
for the same period in 2010. (See footnote 5 in the attached
tables for a discussion of adjusted petroleum EBITDA.)
Crude throughput for the full year of 2011 averaged a record
103,702 barrels per day (bpd), and for the fourth quarter 2011
crude throughput averaged 93,705 bpd, reflecting the impact of the
turnaround at the Coffeyville
refinery in the fourth quarter. These figures compare to an average
crude throughput of 113,365 bpd for the full year in 2010.
Including all feedstocks and blendstocks, total throughput in 2011
averaged 108,933 bpd for the full year and 97,630 bpd for the
fourth quarter.
Gross profit per barrel was $13.41
for the full year 2011 and 90 cents
in the fourth quarter 2011. Refining margin per barrel
adjusted for FIFO impact, a non-GAAP measure, was $21.12 for the full year 2011 and $11.05 for the fourth quarter (see footnote
4).
Direct operating expense per barrel sold, exclusive of
depreciation and amortization, was $6.38 for the full year 2011 compared to
$3.30 for the full year 2010.
For the fourth quarter 2011, direct operating expenses per
barrel sold were $12.53 per barrel
sold compared to $3.07 per barrel
sold in the fourth quarter of 2010.
Nitrogen Fertilizer Business (CVR Partners,
LP)
The fertilizer business operated by CVR Partners, LP reported
full-year 2011 operating income of $136.2
million on net sales of $302.9
million compared to operating income in 2010 of $20.4 million on net sales of $180.5 million. Fourth quarter operating
income in 2011 was $42.6 million on
net sales of $87.6 million compared
to an operating loss of $9.7 million
on net sales of $39.4 million in the
fourth quarter of 2010. The fertilizer production facility
completed a biennial turnaround during the fourth quarter of
2010.
Adjusted EBITDA for the fertilizer business was $162.6 million for the full year of 2011 compared
to adjusted EBITDA of $52.6 million
for the same period in 2010. For the fourth quarter in 2011,
adjusted EBITDA was $48.4 million
compared to $7.5 million for the same
period in 2010. (See footnote 5 in the attached tables for a
discussion of adjusted EBITDA.)
The nitrogen fertilizer plant produced 116,800 net tons of
ammonia available for sale during 2011, compared to 155,600 net
tons in 2010, and for the fourth quarter of 2011 produced 27,500
net tons of ammonia available for sale compared to 37,700 net tons
in the fourth quarter of 2010. The plant produced 714,100
tons of UAN during the full year of 2011 compared to 578,300 tons
in 2010, and 178,300 tons of UAN in the fourth quarter 2011
compared to 77,800 tons in the fourth quarter of 2010.
For the full year 2011, average realized sales prices for
ammonia and UAN were $579 per ton and
$284 per ton respectively compared to
$361 per ton and $179 per ton respectively in 2010. For the
fourth quarter 2011, average realized sales prices for ammonia and
UAN were $606 per ton and
$334 per ton respectively compared to
$491 and $171 per ton for the same period in 2010.
Forward Looking Statements
This news release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking
statements by our use of forward-looking terminology such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"explore," "evaluate," "intend," "may," "might," "plan,"
"potential," "predict," "seek," "should," or "will," or the
negative thereof or other variations thereon or comparable
terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. For a discussion of
risk factors which may affect our results, please see the risk
factors and other disclosures included in our Annual Report on Form
10-K for the year ended Dec. 31,
2010, and any subsequently filed quarterly reports on Form
10-Q. These risks may cause our actual results, performance
or achievements to differ materially from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking
statements included in this press release are made only as of the
date hereof. CVR Energy disclaims any intention or obligation
to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
About CVR Energy, Inc.
Headquartered in Sugar Land,
Texas, CVR Energy, Inc.'s subsidiary and affiliated
businesses operate independent refining assets in Coffeyville, Kan., and Wynnewood, Okla., with more than 185,000
barrels per day of processing capacity, a marketing network for
supplying high value transportation fuels to customers through
tanker trucks and pipeline terminals, and a crude oil gathering
system serving central Kansas,
Oklahoma, western Missouri and southwest Nebraska. In addition, CVR Energy
subsidiaries own a majority interest in and serve as the general
partner of CVR Partners, LP, a producer of ammonia and urea
ammonium nitrate, or UAN, fertilizers.
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For more information,
contact:
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Investor
Relations:
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Media Relations:
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Ed Morgan
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Steve Eames
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CVR Energy, Inc.
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CVR Energy, Inc.
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281-207-3388
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281-207-3550
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or
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MediaRelations@CVREnergy.com
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Jay Finks
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CVR Energy, Inc.
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281-207-3464
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InvestorRelations@CVREnergy.com
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CVR Energy, Inc.
The following tables summarize the financial data and key
operating statistics for CVR Energy and our two operating segments
for the three and twelve months ended December 31, 2011 and 2010. Select balance sheet
data is as of December 31, 2011 and 2010.
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Three Months
Ended
December
31,
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Twelve
Months Ended
December
31,
|
|
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2011
|
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2010
|
|
2011
|
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2010
|
|
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(in
millions, except share data)
|
|
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(unaudited)
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(unaudited)
|
|
|
|
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Consolidated Statement of
Operations Data:
|
|
|
|
|
|
|
|
|
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Net sales
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$ 1,062.2
|
|
$ 1,148.2
|
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$ 5,029.1
|
|
$ 4,079.8
|
|
|
Cost of product
sold*
|
857.3
|
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983.7
|
|
3,943.5
|
|
3,568.1
|
|
|
Direct operating
expenses*
|
124.8
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|
64.2
|
|
334.1
|
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239.8
|
|
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Insurance recovery — business
interruption
|
—
|
|
—
|
|
(3.4)
|
|
—
|
|
|
Selling, general and
administrative expenses*
|
29.0
|
|
43.5
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|
98.0
|
|
92.0
|
|
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Depreciation and
amortization
|
24.2
|
|
22.0
|
|
90.3
|
|
86.8
|
|
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Operating
income
|
$ 26.9
|
|
$ 34.8
|
|
$ 566.6
|
|
$ 93.1
|
|
|
Interest expense and other
financing costs
|
(14.7)
|
|
(13.7)
|
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(55.8)
|
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(50.3)
|
|
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Gain (loss) on derivatives,
net
|
103.2
|
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(9.3)
|
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78.1
|
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(1.5)
|
|
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Loss on extinguishment of
debt
|
—
|
|
(1.6)
|
|
(2.1)
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(16.6)
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Other income, net
|
—
|
|
1.1
|
|
1.3
|
|
3.4
|
|
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Income before
income tax expense
|
$ 115.4
|
|
$ 11.3
|
|
$ 588.1
|
|
$ 28.1
|
|
|
Income tax expense
|
37.1
|
|
9.0
|
|
209.5
|
|
13.8
|
|
|
Net
income
|
$ 78.3
|
|
$ 2.3
|
|
$ 378.6
|
|
$ 14.3
|
|
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Net income
attributable to noncontrolling interest
|
12.4
|
|
—
|
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32.8
|
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—
|
|
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Net income
attributable to CVR Energy stockholders
|
65.9
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2.3
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345.8
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14.3
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_______________
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* Amounts shown are
exclusive of depreciation and amortization.
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Basic earnings per
share
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$ 0.76
|
|
$ 0.03
|
|
$ 4.00
|
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$ 0.17
|
|
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Diluted earnings
per share
|
$ 0.75
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|
$ 0.03
|
|
$ 3.94
|
|
$ 0.16
|
|
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Weighted average common shares
outstanding
|
|
|
|
|
|
|
|
|
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Basic
|
86,582,800
|
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86,352,627
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86,493,735
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86,340,342
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Diluted
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87,746,843
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87,121,094
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87,766,573
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86,789,179
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|
|
|
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|
|
|
|
|
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|
|
As of
December 31,
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As of
December 31,
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|
2011
|
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2010
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(in
millions)
|
|
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(unaudited)
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|
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|
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Balance Sheet
Data:
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|
|
|
|
|
Cash and cash
equivalents
|
$ 388.3
|
|
$ 200.0
|
|
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Working capital
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769.2
|
|
333.6
|
|
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Total assets
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3,119.3
|
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1,740.2
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Total debt, including current
portion
|
863.8
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477.0
|
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Total CVR stockholders'
equity
|
1,151.6
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|
689.6
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Noncontrolling
interest
|
148.1
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10.6
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve
Months Ended
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
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(in
millions)
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
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Other Financial
Data:
|
|
|
|
|
|
|
|
|
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Cash flows provided by (used in)
operating activities
|
$ (67.4)
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|
$ 74.4
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|
$ 278.6
|
|
$ 225.4
|
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Cash flows used in investing
activities
|
(630.5)
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(8.3)
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(674.4)
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(31.3)
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Cash flows provided by (used in)
financing activities
|
187.8
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(28.4)
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|
584.1
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(31.0)
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Net cash
flow
|
$ (510.1)
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|
$ 37.7
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|
$ 188.3
|
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$ 163.1
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|
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Capital expenditures
|
$ 44.6
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|
$ 9.4
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$ 91.2
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$ 32.4
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve
Months Ended
December
31,
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|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(in
millions, except per share data)
|
|
|
(unaudited)
|
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(unaudited)
|
|
|
|
Non-GAAP
Measures:
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|
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Reconciliation of Net Income to
Adjusted Net Income:
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|
Net Income attributable to CVR
Energy stockholders
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$ 65.9
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$ 2.3
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$ 345.8
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$ 14.3
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Adjustments:
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FIFO impact
(favorable) unfavorable, net of taxes
|
(21.3)
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|
(17.8)
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(15.5)
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|
(19.1)
|
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|
Share-based
compensation, net of taxes
|
2.1
|
|
23.4
|
|
18.6
|
|
30.1
|
|
|
Loss on
extinguishment of debt, net of taxes
|
—
|
|
1.0
|
|
1.3
|
|
10.0
|
|
|
Loss on
disposition of assets, net of taxes
|
0.6
|
|
0.8
|
|
1.5
|
|
1.6
|
|
|
Major
scheduled turnaround expense, net of taxes
|
32.8
|
|
2.5
|
|
40.2
|
|
2.9
|
|
|
Unrealized
(gain) loss on derivatives, net of taxes
|
(55.8)
|
|
1.8
|
|
(51.7)
|
|
1.3
|
|
|
Expenses
associated with the acquisition of Gary-Williams, net of taxes
(1)
|
5.2
|
|
—
|
|
5.5
|
|
—
|
|
|
Adjusted net income (2)
|
$ 29.5
|
|
$ 14.0
|
|
$ 345.7
|
|
$ 41.1
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
diluted share
|
$ 0.34
|
|
$ 0.16
|
|
$ 3.94
|
|
$ 0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve
Months Ended
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(in
millions, except operating statistics)
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
Petroleum Business Financial
Results:
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 979.5
|
|
$ 1,109.6
|
|
$ 4,751.8
|
|
$ 3,903.8
|
|
|
Cost of product
sold*
|
849.1
|
|
977.9
|
|
3,926.6
|
|
3,538.0
|
|
|
Direct operating
expenses*
|
103.7
|
|
38.3
|
|
247.7
|
|
153.1
|
|
|
Depreciation and
amortization
|
19.0
|
|
16.9
|
|
69.9
|
|
66.4
|
|
|
Gross
profit
|
$ 7.7
|
|
$ 76.5
|
|
$ 507.6
|
|
$ 146.3
|
|
|
Plus direct operating
expenses*
|
103.7
|
|
38.3
|
|
247.7
|
|
153.1
|
|
|
Plus depreciation and
amortization
|
19.0
|
|
16.9
|
|
69.9
|
|
66.4
|
|
|
Refining margin (3)
|
$ 130.4
|
|
$ 131.7
|
|
$ 825.2
|
|
$ 365.8
|
|
|
FIFO impact (favorable)
unfavorable
|
(35.1)
|
|
(29.6)
|
|
(25.6)
|
|
(31.7)
|
|
|
Refining margin adjusted for
FIFO impact (4)
|
$ 95.3
|
|
$ 102.1
|
|
$ 799.6
|
|
$ 334.1
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$ (3.3)
|
|
$ 60.4
|
|
$ 465.7
|
|
$ 104.6
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Petroleum EBITDA
(5)
|
$ 47.6
|
|
$ 51.1
|
|
$ 580.9
|
|
$ 154.7
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum Key Operating
Statistics:
|
|
|
|
|
|
|
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Per crude oil throughput
barrel:
|
|
|
|
|
|
|
|
|
|
Refining margin
(3)
|
$ 15.13
|
|
$ 12.30
|
|
$ 21.80
|
|
$ 8.84
|
|
|
FIFO impact
(favorable) unfavorable
|
(4.08)
|
|
(2.76)
|
|
(0.68)
|
|
(0.77)
|
|
|
Refining margin
adjusted for FIFO impact (4)
|
11.05
|
|
9.54
|
|
21.12
|
|
8.07
|
|
|
Gross
profit
|
0.90
|
|
7.15
|
|
13.41
|
|
3.54
|
|
|
Direct operating
expenses*
|
12.03
|
|
3.57
|
|
6.54
|
|
3.70
|
|
|
Direct operating expenses per
barrel sold*
|
12.53
|
|
3.07
|
|
6.38
|
|
3.30
|
|
|
Barrels sold (barrels per
day)
|
89,953
|
|
135,478
|
|
106,397
|
|
127,142
|
|
|
|
|
|
|
|
|
|
|
|
_______________
|
|
|
|
|
|
|
|
|
|
* Amounts shown are exclusive of
depreciation and amortization.
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Refining Throughput and
Production Data:
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
78,006
|
|
79.9%
|
|
87,625
|
|
67.0%
|
|
83,538
|
|
76.7%
|
|
89,746
|
|
72.5%
|
|
|
Light/medium
sour
|
4,986
|
|
5.1%
|
|
12,802
|
|
9.8%
|
|
1,704
|
|
1.6%
|
|
8,180
|
|
6.6%
|
|
|
Heavy sour
|
10,713
|
|
11.0%
|
|
15,934
|
|
12.2%
|
|
18,460
|
|
16.9%
|
|
15,439
|
|
12.5%
|
|
|
Total crude
oil throughput
|
93,705
|
|
96.0%
|
|
116,361
|
|
89.0%
|
|
103,702
|
|
95.2%
|
|
113,365
|
|
91.6%
|
|
|
All other feedstocks and
blendstocks
|
3,925
|
|
4.0%
|
|
14,471
|
|
11.0%
|
|
5,231
|
|
4.8%
|
|
10,350
|
|
8.4%
|
|
|
Total
throughput
|
97,630
|
|
100.0%
|
|
130,832
|
|
100.0%
|
|
108,933
|
|
100.0%
|
|
123,715
|
|
100.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
41,032
|
|
42.1%
|
|
66,973
|
|
51.1%
|
|
48,486
|
|
44.3%
|
|
61,136
|
|
49.1%
|
|
|
Distillate
|
40,095
|
|
41.1%
|
|
52,000
|
|
39.7%
|
|
45,535
|
|
41.6%
|
|
50,439
|
|
40.5%
|
|
|
Other (excluding
internally produced fuel)
|
16,410
|
|
16.8%
|
|
12,112
|
|
9.2%
|
|
15,385
|
|
14.1%
|
|
12,978
|
|
10.4%
|
|
|
Total refining
production (excluding internally produced fuel)
|
97,537
|
|
100.0%
|
|
131,085
|
|
100.0%
|
|
109,406
|
|
100.0%
|
|
124,553
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product price (dollars per
gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$2.56
|
|
|
|
$2.20
|
|
|
|
$2.82
|
|
|
|
$2.10
|
|
|
|
|
Distillate
|
$2.98
|
|
|
|
$2.40
|
|
|
|
$3.03
|
|
|
|
$2.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Indicators (dollars per
barrel):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West Texas
Intermediate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(WTI) NYMEX
|
$94.06
|
|
|
|
$85.24
|
|
|
|
$95.11
|
|
|
|
$79.61
|
|
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WTI less WTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(light/medium sour)
|
0.84
|
|
|
|
2.71
|
|
|
|
2.06
|
|
|
|
2.15
|
|
|
|
|
WTI less WCS (heavy
sour)
|
12.38
|
|
|
|
16.08
|
|
|
|
16.54
|
|
|
|
15.07
|
|
|
|
|
NYMEX Crack Spreads:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
16.03
|
|
|
|
8.03
|
|
|
|
23.54
|
|
|
|
9.62
|
|
|
|
|
Heating Oil
|
30.96
|
|
|
|
14.00
|
|
|
|
29.12
|
|
|
|
10.53
|
|
|
|
|
NYMEX 2-1-1 Crack
Spread
|
23.49
|
|
|
|
11.01
|
|
|
|
26.33
|
|
|
|
10.07
|
|
|
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
(0.87)
|
|
|
|
(1.64)
|
|
|
|
(1.09)
|
|
|
|
(1.49)
|
|
|
|
|
Ultra Low Sulfur
Diesel
|
0.95
|
|
|
|
0.34
|
|
|
|
1.98
|
|
|
|
1.35
|
|
|
|
|
PADD II Group 3 Product
Crack:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
15.16
|
|
|
|
6.39
|
|
|
|
22.44
|
|
|
|
8.13
|
|
|
|
|
Ultra Low Sulfur
Diesel
|
31.91
|
|
|
|
14.34
|
|
|
|
31.10
|
|
|
|
11.88
|
|
|
|
|
PADD II Group 3 2-1-1
|
23.54
|
|
|
|
10.36
|
|
|
|
26.77
|
|
|
|
10.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve
Months Ended
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(in
millions, except as noted)
|
|
|
(unaudited)
|
|
|
Nitrogen Fertilizer Business
Financial Results:
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 87.6
|
|
$ 39.4
|
|
$ 302.9
|
|
$ 180.5
|
|
|
Cost of product
sold*
|
14.4
|
|
6.6
|
|
42.5
|
|
34.3
|
|
|
Direct operating
expenses*
|
21.1
|
|
26.0
|
|
86.5
|
|
86.7
|
|
|
Insurance recovery — business
interruption
|
—
|
|
—
|
|
(3.4)
|
|
—
|
|
|
Depreciation and
amortization
|
4.9
|
|
4.6
|
|
18.9
|
|
18.5
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$ 42.6
|
|
$ (9.7)
|
|
$ 136.2
|
|
$ 20.4
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen Fertilizer
EBITDA (5)
|
$ 48.4
|
|
$ 7.5
|
|
$ 162.6
|
|
$ 52.6
|
|
|
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer Key
Operating Statistics:
|
|
|
|
|
|
|
|
|
|
Production (thousand
tons):
|
|
|
|
|
|
|
|
|
|
Ammonia (gross produced)
(6)
|
100.8
|
|
69.9
|
|
411.2
|
|
392.7
|
|
|
Ammonia (net available
for sale) (6)
|
27.5
|
|
37.7
|
|
116.8
|
|
155.6
|
|
|
UAN
|
178.3
|
|
77.8
|
|
714.1
|
|
578.3
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum coke consumed
(thousand tons)
|
126.3
|
|
84.5
|
|
517.3
|
|
436.3
|
|
|
Petroleum coke (cost per
ton)
|
$ 42
|
|
$ 8
|
|
$ 33
|
|
$ 17
|
|
|
|
|
|
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
|
|
|
|
|
Ammonia
|
29.3
|
|
49.4
|
|
112.8
|
|
164.7
|
|
|
UAN
|
184.6
|
|
73.8
|
|
709.3
|
|
580.7
|
|
|
Total
sales
|
213.9
|
|
123.2
|
|
822.1
|
|
745.4
|
|
|
|
|
|
|
|
|
|
|
|
Product pricing (plant gate)
(dollars per ton) (7):
|
|
|
|
|
|
|
|
|
|
Ammonia
|
$ 606
|
|
$ 491
|
|
$ 579
|
|
$ 361
|
|
|
UAN
|
$ 334
|
|
$ 171
|
|
$ 284
|
|
$ 179
|
|
|
|
|
|
|
|
|
|
|
|
On-stream factors
(8):
|
|
|
|
|
|
|
|
|
|
Gasification
|
97.6%
|
|
68.8%
|
|
99.0%
|
|
89.0%
|
|
|
Ammonia
|
97.1%
|
|
67.3%
|
|
97.7%
|
|
87.7%
|
|
|
UAN
|
94.1%
|
|
47.1%
|
|
95.5%
|
|
80.8%
|
|
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
|
Ammonia — Southern Plains
(dollars per ton)
|
$ 651
|
|
$ 606
|
|
$ 619
|
|
$ 437
|
|
|
UAN — Mid Cornbelt (dollars per
ton)
|
$ 400
|
|
$ 331
|
|
$ 379
|
|
$ 266
|
|
|
_______________
|
|
|
|
|
|
|
|
|
|
* Amounts shown are exclusive of
depreciation and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
On December 15, 2011, the
Company acquired the stock of Gary-Williams Energy Corporation and
its wholly-owned subsidiaries which included a 70,000 barrel per
day refinery in Wynnewood, Oklahoma. The Company incurred costs
that are referred to herein as acquisition costs. Included in the
acquisition costs are legal and other professional fees associated
with the acquisition and certain costs incurred beginning in 2011
associated with the preliminary integration of the acquired
business. In conjunction with the acquisition, the Company also
incurred approximately $3.9 million of costs associated with a
bridge loan that was committed but undrawn. The costs were
immediately expensed and not deferred.
|
|
|
|
|
|
(2)
|
Adjusted net income is defined
as net income adjusted for the impact on an after tax basis of the
Company's accounting for its inventory under FIFO, share-based
compensation, loss on extinguishment of debt, major scheduled
turnaround expenses, loss on disposition of fixed assets,
unrealized (gain)/loss on derivatives, net, and expenses associated
with the acquisition of Gary-Williams Energy Corporation and its
subsidiaries. Adjusted net income is not a recognized term under
GAAP and should not be substituted for net income (loss) as a
measure of our performance but rather should be utilized as a
supplemental measure of financial performance in evaluating our
business. Management believes that adjusted net income provides
relevant and useful information that enables external users of our
financial statements, such as industry analysts, investors, lenders
and rating agencies to better understand and evaluate our ongoing
operating results and allow for greater transparency in the review
of our overall financial, operational and economic
performance.
|
|
|
|
|
|
(3)
|
Refining margin per crude oil
throughput barrel is a measurement calculated as the difference
between net sales and cost of product sold (exclusive of
depreciation and amortization). Refining margin is a non-GAAP
measure that we believe is important to investors in evaluating our
refinery's performance as a general indication of the amount above
our cost of product sold that we are able to sell refined products.
Each of the components used in this calculation (net sales
and cost of product sold exclusive of depreciation and
amortization) can be taken directly from our Statement of
Operations. Our calculation of refining margin may differ
from similar calculations of other companies in our industry,
thereby limiting its usefulness as a comparative measure. In
order to derive the refining margin per crude oil throughput
barrel, we utilize the total dollar figures for refining margin as
derived above and divide by the applicable number of crude oil
throughput barrels for the period. We believe that refining
margin is important to enable investors to better understand and
evaluate our ongoing operating results and allow for greater
transparency in the review of our overall financial, operational
and economic performance.
|
|
|
|
|
|
(4)
|
Refining margin per crude oil
throughput barrel adjusted for FIFO impact is a measurement
calculated as the difference between net sales and cost of product
sold (exclusive of depreciation and amortization) adjusted for FIFO
impacts. Refining margin adjusted for FIFO impact is a
non-GAAP measure that we believe is important to investors in
evaluating our refinery's performance as a general indication of
the amount above our cost of product sold (taking into account the
impact of our utilization of FIFO) that we are able to sell refined
products. Our calculation of refining margin adjusted for FIFO
impact may differ from calculations of other companies in our
industry, thereby limiting its usefulness as a comparative
measure. Under our
FIFO accounting method, changes in crude oil prices can cause
fluctuations in the inventory valuation of our crude oil, work in
process and finished goods, thereby resulting in favorable FIFO
impacts when crude oil prices increase and unfavorable FIFO impacts
when crude oil prices decrease.
|
|
|
|
|
|
(5)
|
Adjusted Petroleum and Nitrogen
Fertilizer EBITDA represents operating income adjusted for FIFO
impacts (favorable) unfavorable, share-based compensation, major
scheduled turnaround expenses, realized gain (loss) on derivatives,
net, loss on disposition of fixed assets, depreciation and
amortization and other income (expense). Adjusted EBITDA by
operating segment results from operating income by segment adjusted
for items that we believe are needed in order to evaluate results
in a more comparative analysis from period to period.
Adjusted EBITDA by operating segment is not a recognized term
under GAAP and should not be substituted for operating income as a
measure of performance but should be utilized as a supplemental
measure of performance in evaluating our business. Management
believes that adjusted EBITDA by operating segment provides
relevant and useful information that enables investors to better
understand and evaluate our ongoing operating results and allows
for greater transparency in the reviewing of our overall financial,
operational and economic performance. Below is a
reconciliation of operating income to adjusted EBITDA for the
petroleum and nitrogen fertilizer segments for the three and twelve
months ended December 31, 2011 and 2010:
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve
Months Ended
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(in
millions)
|
|
|
(unaudited)
|
|
|
Petroleum:
|
|
|
|
|
|
|
|
|
|
Petroleum operating income
(loss)
|
$ (3.3)
|
|
$ 60.4
|
|
$ 465.7
|
|
$ 104.6
|
|
|
FIFO impacts
(favorable), unfavorable
|
(35.1)
|
|
(29.6)
|
|
(25.6)
|
|
(31.7)
|
|
|
Share-based
compensation
|
0.7
|
|
9.1
|
|
8.7
|
|
11.5
|
|
|
Major scheduled
turnaround expenses
|
54.1
|
|
0.7
|
|
66.4
|
|
1.2
|
|
|
Realized gain
(loss) on derivatives, net
|
11.1
|
|
(6.4)
|
|
(7.2)
|
|
0.7
|
|
|
Loss on disposition
of assets
|
1.0
|
|
—
|
|
2.5
|
|
1.3
|
|
|
Depreciation and
amortization
|
19.0
|
|
16.9
|
|
69.9
|
|
66.4
|
|
|
Other income
(expense)
|
0.1
|
|
—
|
|
0.5
|
|
0.7
|
|
|
Adjusted Petroleum
EBITDA
|
$ 47.6
|
|
$ 51.1
|
|
$ 580.9
|
|
$ 154.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve
Months Ended
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
(in
millions)
|
|
|
(unaudited)
|
|
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer operating
income
|
$ 42.6
|
|
$ (9.7)
|
|
$ 136.2
|
|
$ 20.4
|
|
|
Share-based
compensation
|
0.9
|
|
7.7
|
|
7.3
|
|
9.0
|
|
|
Loss on disposition
of assets
|
—
|
|
1.4
|
|
—
|
|
1.4
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
3.5
|
|
—
|
|
3.5
|
|
|
Depreciation and
amortization
|
4.9
|
|
4.6
|
|
18.9
|
|
18.5
|
|
|
Other income
(expense)
|
—
|
|
—
|
|
0.2
|
|
(0.2)
|
|
|
Adjusted Nitrogen Fertilizer
EBITDA
|
$ 48.4
|
|
$ 7.5
|
|
$ 162.6
|
|
$ 52.6
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Gross tons produced for ammonia
represent the total ammonia produced, including ammonia produced
that was upgraded into UAN. The net tons available for sale
represent the ammonia available for sale that was not upgraded into
UAN.
|
|
|
|
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(7)
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Plant gate sales per ton
represent net sales less freight and hydrogen revenue divided by
product sales volume in tons in the reporting period and is shown
in order to provide a pricing measure that is comparable across the
fertilizer industry.
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(8)
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On-stream factor is the total
number of hours operated divided by the total number of hours in
the reporting period and is included as a measure of operating
efficiency.
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Use of Non-GAAP Financial
Measures
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To supplement the actual results
in accordance with GAAP for the applicable periods, the Company
also uses non-GAAP measures as discussed above, which are adjusted
for GAAP-based results. The use of non-GAAP adjustments are
not in accordance with or an alternative for GAAP. The
adjustments are provided to enhance an overall understanding of the
Company's financial performance for the applicable periods and are
indicators management believes are relevant and useful for planning
and forecasting future periods.
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SOURCE CVR Energy, Inc.