SUGAR LAND, Texas, Aug. 1, 2013 /PRNewswire/ -- CVR Energy,
Inc. (NYSE: CVI) today announced second quarter 2013 net income of
$183.4 million, or $2.11 per diluted share, on net sales of
$2,220.3 million, compared to net
income of $154.7 million, or
$1.75 cents per diluted share, on net
sales of $2,308.3 million for the
second quarter of 2012. Operating income for the second quarter of
2013 was $262.7 million compared to
$235.8 million in the second quarter
of 2012.
(Logo:
http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
For the first six months of 2013, net income was $348.4 million, or $4.01 per diluted share, on net sales of
$4,572.7 million, compared to net
income of $129.5 million, or
$1.46 per diluted share, on net sales
of $4,276.9 million for the same
period in 2012. Year-to-date, operating income was $630.3 million compared to $376.3 million for the first six months of
2012.
The company also announced a second quarter 2013 cash dividend
of 75 cents per share. The dividend,
as declared by CVR Energy's Board of Directors, will be paid on
Aug. 19, 2013, to stockholders of
record on Aug. 12, 2013.
On May 24, 2013, CVR Energy
declared a special dividend of $6.50
per share, which was paid on June 10,
2013, to stockholders of record on June 3, 2013.
On July 26, CVR Energy's petroleum
subsidiary, CVR Refining, announced a 2013 second quarter cash
distribution of $1.35 per common unit
and CVR Partners, CVR Energy's fertilizer subsidiary, announced a
2013 second quarter cash distribution of 58.3 cents per common unit.
"We are pleased that CVR Energy's subsidiaries turned in strong
financial performance for the second quarter of 2013, although our
results were impacted by narrowing crack spreads and the higher
cost of Renewable Identification Numbers, or RINs, for CVR
Refining's petroleum business, as well as unscheduled downtime at
CVR Partners' fertilizer plant," said Jack
Lipinski, chief executive officer. "At the same time, the
Coffeyville and Wynnewood refineries had strong operational
performance with record level throughput rates at Wynnewood for the quarter, and CVR Partners
reported record UAN production at its fertilizer plant.
"CVR Energy continues to return cash to stockholders through
quarterly and special dividends," Lipinski said. "We have paid or
declared cash dividends of $13.50 per
share to our stockholders for the first six months of 2013."
Petroleum Business
The petroleum business,
which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported second quarter
2013 operating income of $229.1
million, and adjusted EBITDA, a non-GAAP financial measure,
of $250.6 million, on net sales of
$2,138.1 million, compared to
operating income in the same quarter a year earlier of $248.9 million, and adjusted EBITDA of
$381.4 million, on net sales of
$2,229.5 million.
Both refineries had strong operational performance in the 2013
second quarter. Throughputs of crude oil and all other feedstocks
and blendstocks totaled 201,925 barrels per day (bpd) in the 2013
second quarter, which includes record throughput rates at the
Wynnewood refinery. Throughputs of
crude oil and all other feedstocks and blendstocks for both
refineries totaled 199,501 bpd for the same period in 2012.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $19.18 in the second quarter 2013 compared to
$27.07 during the same period in
2012. Direct operating expenses per barrel sold, exclusive of
depreciation and amortization, for the 2013 second quarter was
$4.60, compared to $3.81 in the second quarter of 2012.
Coffeyville Refinery
The Coffeyville refinery reported second quarter
2013 gross profit of $163.8 million,
compared to a gross profit of $165.7
million for the second quarter of 2012. Second quarter 2013
crude oil throughput totaled 117,265 bpd, compared to 121,325 bpd
in the second quarter of 2012. Refining margin adjusted for FIFO
impact per crude oil throughput barrel for the second quarter of
2013 was $20.30, compared to
$28.02 for the same period in 2012.
Direct operating expenses per barrel sold for the 2013 second
quarter was $4.37, compared to direct
operating expenses per barrel sold of $3.69 for the 2012 second quarter.
Wynnewood Refinery
The Wynnewood refinery had a second quarter 2013
gross profit of $85.8 million
compared to a gross profit of $99.3
million for the second quarter of 2012. Second quarter of
2013 crude oil throughput totaled a record 75,936 bpd, compared to
69,046 bpd for the second quarter of 2012. Refining margin adjusted
for FIFO impact per crude oil throughput barrel for the second
quarter of 2013 was $17.34, compared
to $25.23 for the 2012 second
quarter. Direct operating expenses per barrel sold for the second
quarter of 2013 was $4.97, compared
to $4.02 for the 2012 second
quarter.
Nitrogen Fertilizers Business
The fertilizer
business operated by CVR Partners, LP reported second quarter 2013
operating income of $37.1 million,
and adjusted EBITDA, a non-GAAP financial measure, of $44.1 million, on net sales of $88.8 million, compared to operating income of
$36.1 million, and adjusted EBITDA of
$44.1 million, on net sales of
$81.4 million for the 2012 second
quarter.
For the second quarter 2013, average realized plant gate prices
for ammonia and UAN were $688 per ton
and $331 per ton, respectively,
compared to $568 per ton and
$329 per ton, respectively, for the
same period in 2012.
CVR Partners produced 91,300 tons of ammonia during the second
quarter of 2013, of which 2,200 net tons were available for sale
while the rest was upgraded to a record 225,200 tons of UAN.
Additionally, as a result of lower ammonia production rates during
the quarter, the company purchased approximately 4,000 tons of
ammonia from third parties, which was subsequently converted into
UAN. In the 2012 second quarter, the plant produced 108,900 tons of
ammonia with 34,900 net tons available for sale with the remainder
upgraded to 180,000 tons of UAN.
On-stream factors during the 2013 second quarter were 91.6
percent for the gasifier, 89.1 percent for the ammonia synthesis
loop, and 86.5 percent for the UAN conversion facility. Excluding
the nine days of unscheduled downtime due to external events during
the 2013 second quarter, on-stream rates would have been 99.6
percent for the gasifier, 99.1 percent for the ammonia synthesis
loop, and 97.1 percent for the UAN plant.
Cash and Debt
Consolidated cash and cash
equivalents, which included $483.3
million for CVR Refining and $111.9
million for CVR Partners, increased to $1,134.5 million at the end of the 2013 second
quarter compared to $1,040.8 million
at the end of the 2013 first quarter.
Consolidated total debt at the end of the 2013 second quarter,
which included $551.8 million for CVR
Refining and $125.0 million for CVR
Partners, remained flat at $676.8
million compared to $677.0
million at the end of the 2013 first quarter.
Second Quarter 2013 Earnings Conference Call
Information
CVR Energy previously announced that it will
host its second quarter 2013 Earnings Conference Call for analysts
and investors on Thursday, Aug. 1, at
2 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the
Internet at http://www.videonewswire.com/event.asp?id=94592. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8291.
For those unable to listen live, the Webcast will be archived
and available for 14 days at
http://www.videonewswire.com/event.asp?id=94592. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 416496.
Forward Looking Statements
This news release may
contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking
statements by our use of forward-looking terminology such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"explore," "evaluate," "intend," "may," "might," "plan,"
"potential," "predict," "seek," "should," or "will," or the
negative thereof or other variations thereon or comparable
terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. For a discussion of
risk factors which may affect our results, please see the risk
factors and other disclosures included in our most recent Annual
Report on Form 10-K, 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,
except to the extent required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified
holding company primarily engaged in the petroleum refining and
nitrogen fertilizer manufacturing industries through its holdings
in two limited partnerships, CVR Refining, LP and CVR Partners, LP.
CVR Energy subsidiaries serve as the general partner and own a
majority of the common units representing limited partner interests
of CVR Refining and CVR Partners.
For further information, please contact:
Investor Relations:
Jay Finks
CVR Energy, Inc.
281-207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Angie Dasbach
CVR Energy, Inc.
913-982-0482
MediaRelations@CVREnergy.com
CVR Energy,
Inc.
|
Financial and
Operational Data (all information in this release is unaudited
unless noted otherwise).
|
|
|
|
|
Three Months
Ended
June
30,
|
Change from
2012
|
|
2013
|
2012
|
Change
|
Percent
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
Net sales
|
$
2,220.3
|
$
2,308.3
|
$
(88.0)
|
(3.8)%
|
Cost of product
sold
|
1,785.4
|
1,874.2
|
(88.8)
|
(4.7)
|
Direct operating
expenses
|
108.3
|
94.1
|
14.2
|
15.1
|
Selling, general and
administrative expenses
|
28.9
|
72.0
|
(43.1)
|
(59.9)
|
Depreciation and
amortization
|
35.0
|
32.2
|
2.8
|
8.7
|
Operating
income
|
262.7
|
235.8
|
26.9
|
11.4
|
Interest expense and
other financing costs
|
(12.5)
|
(19.0)
|
6.5
|
(34.2)
|
Interest
income
|
0.3
|
0.2
|
0.1
|
50.0
|
Gain on derivatives,
net
|
120.5
|
38.8
|
81.7
|
210.6
|
Other income,
net
|
0.2
|
0.6
|
(0.4)
|
(66.7)
|
Income before income
tax expense
|
371.2
|
256.4
|
114.8
|
44.8
|
Income tax
expense
|
99.5
|
91.1
|
8.4
|
9.2
|
Net income
|
271.7
|
165.3
|
106.4
|
64.4
|
Net income
attributable to noncontrolling interest
|
88.3
|
10.6
|
77.7
|
733.0
|
Net income
attributable to CVR Energy stockholders
|
$
183.4
|
$
154.7
|
$
28.7
|
18.6%
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
2.11
|
$
1.78
|
$
0.33
|
18.5%
|
Diluted earnings per
share
|
$
2.11
|
$
1.75
|
$
0.36
|
20.6%
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
221.3
|
$
407.0
|
$
(185.7)
|
(45.6)%
|
Adjusted net
income*
|
$
124.5
|
$
223.1
|
$
(98.6)
|
(44.2)%
|
Adjusted net income,
per diluted share*
|
$
1.43
|
$
2.52
|
$
(1.09)
|
(43.3)%
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
Basic
|
86,831,050
|
86,821,224
|
9,826
|
—%
|
Diluted
|
86,831,050
|
88,454,006
|
(1,622,956)
|
(1.8)%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
June
30,
|
Change from
2012
|
|
2013
|
2012
|
Change
|
Percent
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
Net sales
|
$
4,572.7
|
$
4,276.9
|
$
295.8
|
6.9%
|
Cost of product
sold
|
3,599.0
|
3,509.4
|
89.6
|
2.6
|
Direct operating
expenses
|
216.8
|
209.6
|
7.2
|
3.4
|
Selling, general and
administrative expenses
|
57.4
|
117.3
|
(59.9)
|
(51.1)
|
Depreciation and
amortization
|
69.2
|
64.3
|
4.9
|
7.6
|
Operating
income
|
630.3
|
376.3
|
254.0
|
67.5
|
Interest expense and
other financing costs
|
(27.9)
|
(38.2)
|
10.3
|
(27.0)
|
Interest
income
|
0.6
|
0.2
|
0.4
|
200.0
|
Gain (loss) on
derivatives, net
|
100.5
|
(108.5)
|
209.0
|
(192.6)
|
Loss on
extinguishment of debt
|
(26.1)
|
—
|
(26.1)
|
—
|
Other income,
net
|
0.3
|
0.9
|
(0.6)
|
(66.7)
|
Income before income
tax expense
|
677.7
|
230.7
|
447.0
|
193.8
|
Income tax
expense
|
193.3
|
81.4
|
111.9
|
137.5
|
Net income
|
484.4
|
149.3
|
335.1
|
224.4
|
Net income
attributable to noncontrolling interest
|
136.0
|
19.8
|
116.2
|
586.9
|
Net income
attributable to CVR Energy stockholders
|
$
348.4
|
$
129.5
|
$
218.9
|
169.0%
|
_____________
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
4.01
|
$
1.49
|
$
2.52
|
169.1%
|
Diluted earnings per
share
|
$
4.01
|
$
1.46
|
$
2.55
|
174.7%
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
507.3
|
$
582.1
|
$
(74.8)
|
(12.9)%
|
Adjusted net
income*
|
$
281.0
|
$
295.7
|
$
(14.7)
|
(5.0)%
|
Adjusted net income,
per diluted share*
|
$
3.24
|
$
3.34
|
$
(0.10)
|
(3.0)%
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
Basic
|
86,831,050
|
86,814,687
|
16,363
|
—%
|
Diluted
|
86,831,050
|
88,464,347
|
(1,633,297)
|
(1.8)%
|
|
|
|
|
|
|
|
|
|
As
of
June
30,
|
As
of
December
31,
|
|
2013
|
2012
|
|
|
(audited)
|
|
(in
millions)
|
Balance Sheet
Data:
|
|
|
Cash and cash
equivalents
|
$ 1,134.5
|
$ 896.0
|
Working
capital
|
1,461.8
|
1,135.4
|
Total
assets
|
4,023.4
|
3,610.9
|
Total debt, including
current portion
|
676.8
|
898.2
|
Total CVR
stockholders' equity
|
1,299.0
|
1,525.1
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2013
|
2012
|
2013
|
2012
|
|
|
(in
millions)
|
Cash Flow
Data
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
Operating
activities
|
$
84.1
|
$
249.6
|
$
362.4
|
$
435.9
|
Investing
activities
|
(50.8)
|
(45.4)
|
(114.5)
|
(104.8)
|
Financing
activities
|
60.4
|
(12.4)
|
(9.4)
|
(26.8)
|
Net cash
flow
|
$
93.7
|
$
191.8
|
$
238.5
|
$
304.3
|
|
|
|
|
|
|
Segment Information
Our operations are organized into
two reportable segments, Petroleum and Nitrogen Fertilizer. Our
operations that are not included in the Petroleum and Nitrogen
Fertilizer segments are included in Corporate and Other segment
(along with elimination of intersegment transactions). The
Petroleum segment includes the operations of our Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with our
crude oil gathering and pipeline systems. Effective with its
initial public offering on January 23,
2013, our Petroleum segment is operated by CVR Refining, LP
("CVR Refining"), in which we own a majority interest as well as
the general partner. Detailed operating results for the
Petroleum segment for the quarter ended June 30, 2013 are
included in CVR Refining's press release dated August 1, 2013. The Nitrogen Fertilizer
segment is operated by CVR Partners, LP, ("CVR Partners") in which
we own a majority interest as well as the general partner. It
consists of a nitrogen fertilizer manufacturing facility that
utilizes a pet coke gasification process in producing nitrogen
fertilizer. Detailed operating results for the Nitrogen
Fertilizer segment for the quarter ended June 30, 2013 are included in CVR Partners' press
release dated August 1, 2013.
The Petroleum Segment, as reported herein for the three and six
months ended June 30, 2012, is not
reflective of the full and actual financial statements of CVR
Refining as certain allocations that were charged to CVR Refining
were not made at the Petroleum segment. Beginning in 2013,
the financial statements of the Petroleum segment are the same as
CVR Refining's financial statements.
|
Petroleum
(CVR
Refining)
|
Nitrogen
Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
Three months ended
June 30, 2013
|
|
|
|
|
Net sales
|
$
2,138.1
|
$
88.8
|
$
(6.6)
|
$
2,220.3
|
Cost of product
sold
|
1,776.6
|
15.6
|
(6.8)
|
1,785.4
|
Direct operating
expenses (1)
|
83.8
|
24.4
|
0.1
|
108.3
|
Major scheduled
turnaround expenses
|
—
|
—
|
—
|
—
|
Selling, general
& administrative
|
20.2
|
5.5
|
3.2
|
28.9
|
Depreciation and
amortization
|
28.4
|
6.2
|
0.4
|
35.0
|
Operating income
(loss)
|
$
229.1
|
$
37.1
|
$
(3.5)
|
$
262.7
|
|
|
|
|
|
Capital
expenditures
|
$
35.5
|
$
13.8
|
$
1.6
|
$
50.9
|
|
|
|
|
|
Six months ended
June 30, 2013
|
|
|
|
|
Net sales
|
$
4,412.1
|
$
170.2
|
$
(9.6)
|
$
4,572.7
|
Cost of product
sold
|
3,582.3
|
26.2
|
(9.5)
|
3,599.0
|
Direct operating
expenses (1)
|
169.9
|
47.0
|
(0.1)
|
216.8
|
Major scheduled
turnaround expenses
|
—
|
—
|
—
|
—
|
Selling, general
& administrative
|
38.8
|
11.1
|
7.5
|
57.4
|
Depreciation and
amortization
|
56.4
|
12.0
|
0.8
|
69.2
|
Operating income
(loss)
|
$
564.7
|
$
73.9
|
$
(8.3)
|
$
630.3
|
|
|
|
|
|
Capital
expenditures
|
$
80.1
|
$
31.9
|
$
2.6
|
$
114.6
|
|
|
|
|
|
|
Petroleum
|
Nitrogen
Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
Three months ended
June 30, 2012
|
|
|
|
|
Net sales
|
$
2,229.5
|
$
81.4
|
$
(2.6)
|
$
2,308.3
|
Cost of product
sold
|
1,866.1
|
10.7
|
(2.6)
|
1,874.2
|
Direct operating
expenses (1)
|
69.1
|
22.4
|
0.1
|
91.6
|
Major scheduled
turnaround expenses
|
2.5
|
—
|
—
|
2.5
|
Selling, general
& administrative
|
16.3
|
7.0
|
48.7
|
72.0
|
Depreciation and
amortization
|
26.6
|
5.2
|
0.4
|
32.2
|
Operating income
(loss)
|
$
248.9
|
$
36.1
|
$
(49.2)
|
$
235.8
|
|
|
|
|
|
Capital
expenditures
|
$
27.0
|
$
16.9
|
$
1.7
|
$
45.6
|
|
|
|
|
|
Six months ended
June 30, 2012
|
|
|
|
|
Net sales
|
$
4,128.0
|
$
159.7
|
$
(10.8)
|
$
4,276.9
|
Cost of product
sold
|
3,496.8
|
23.3
|
(10.7)
|
3,509.4
|
Direct operating
expenses (1)
|
140.8
|
45.3
|
—
|
186.1
|
Major scheduled
turnaround expenses
|
23.5
|
—
|
—
|
23.5
|
Selling, general
& administrative
|
30.2
|
13.0
|
74.1
|
117.3
|
Depreciation and
amortization
|
52.9
|
10.6
|
0.8
|
64.3
|
Operating income
(loss)
|
$
383.8
|
$
67.5
|
$
(75.0)
|
$
376.3
|
|
|
|
|
|
Capital
expenditures
|
$
62.4
|
$
39.2
|
$
3.6
|
$
105.2
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
|
|
Petroleum
(CVR
Refining)
|
Nitrogen
Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
June 30,
2013
|
|
|
|
|
Cash and cash
equivalents
|
$
483.3
|
$
111.9
|
$
539.3
|
$
1,134.5
|
Total
assets
|
2,800.2
|
619.2
|
604.0
|
4,023.4
|
Total debt, including
current portion
|
551.8
|
125.0
|
—
|
676.8
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
Cash and cash
equivalents
|
$
153.1
|
$
127.8
|
$
615.1
|
$
896.0
|
Total
assets
|
2,258.5
|
623.0
|
729.4
|
3,610.9
|
Total debt, including
current portion
|
773.2
|
125.0
|
—
|
898.2
|
Petroleum Segment Operating Data
The following tables
set forth information about our consolidated Petroleum segment
operations and our Coffeyville and
Wynnewood refineries.
Reconciliations of certain non-GAAP financial measures are provided
under "Use of Non-GAAP Financial Measures" below. Additional
discussion of operating results for the Petroleum segment for the
quarter ended June 30, 2013 are included in CVR Refining's
press release dated August 1,
2013.
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2013
|
2012
|
2013
|
2012
|
|
|
(in millions,
except operating statistics)
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
Net sales
|
$
2,138.1
|
$
2,229.5
|
$
4,412.1
|
$
4,128.0
|
Cost of product
sold
|
1,776.6
|
1,866.1
|
3,582.3
|
3,496.8
|
Refining
margin*
|
361.5
|
363.4
|
829.8
|
631.2
|
Direct operating
expenses
|
83.8
|
69.1
|
169.9
|
140.8
|
Major scheduled
turnaround expenses
|
—
|
2.5
|
—
|
23.5
|
Depreciation and
amortization
|
28.4
|
26.6
|
56.4
|
52.9
|
Gross
profit*
|
249.3
|
265.2
|
603.5
|
414.0
|
Selling, general and
administrative expenses
|
20.2
|
16.3
|
38.8
|
30.2
|
Operating
income
|
$
229.1
|
$
248.9
|
$
564.7
|
$
383.8
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
337.3
|
$
468.8
|
$
800.8
|
$
726.2
|
|
|
|
|
|
Adjusted Petroleum
EBITDA*
|
$
250.6
|
$
381.4
|
$
560.5
|
$
535.2
|
|
|
|
|
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
Refining
margin*
|
$
20.56
|
$
20.98
|
$
23.63
|
$
20.58
|
FIFO impact
(favorable) unfavorable
|
(1.38)
|
6.09
|
(0.83)
|
3.10
|
Refining margin
adjusted for FIFO impact*
|
19.18
|
27.07
|
22.80
|
23.68
|
Gross
profit*
|
14.18
|
15.31
|
17.19
|
13.50
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.77
|
4.13
|
4.84
|
5.36
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
4.60
|
$
3.81
|
$
4.62
|
$
4.75
|
Barrels sold (barrels
per day)
|
200,314
|
206,606
|
203,079
|
181,589
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
Petroleum Segment
Summary Refining Throughput and Production Data:
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
Sweet
|
153,944
|
76.2%
|
148,912
|
74.6%
|
155,304
|
76.4%
|
129,781
|
73.1%
|
Medium
|
18,089
|
9.0%
|
20,488
|
10.3%
|
16,455
|
8.1%
|
22,728
|
12.8%
|
Heavy sour
|
21,168
|
10.5%
|
20,972
|
10.5%
|
22,244
|
10.9%
|
16,006
|
9.0%
|
Total
crude oil throughput
|
193,201
|
95.7%
|
190,372
|
95.4%
|
194,003
|
95.4%
|
168,515
|
94.9%
|
All other feedstocks
and blendstocks
|
8,724
|
4.3%
|
9,129
|
4.6%
|
9,248
|
4.6%
|
8,929
|
5.1%
|
Total
throughput
|
201,925
|
100.0%
|
199,501
|
100.0%
|
203,251
|
100.0%
|
177,444
|
100.0%
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
Gasoline
|
95,253
|
47.1%
|
96,972
|
48.7%
|
96,710
|
47.4%
|
89,131
|
50.4%
|
Distillate
|
84,617
|
41.8%
|
82,075
|
41.3%
|
84,232
|
41.3%
|
72,202
|
40.9%
|
Other (excluding
internally produced fuel)
|
22,546
|
11.1%
|
19,910
|
10.0%
|
23,043
|
11.3%
|
15,396
|
8.7%
|
Total
refining production (excluding internally produced fuel)
|
202,416
|
100.0%
|
198,957
|
100.0%
|
203,985
|
100.0%
|
176,729
|
100.0%
|
|
|
|
|
|
|
|
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
Gasoline
|
$
2.88
|
|
$
2.89
|
|
$
2.85
|
|
$
2.88
|
|
Distillate
|
2.95
|
|
2.95
|
|
3.03
|
|
3.03
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2013
|
2012
|
2013
|
2012
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
|
$ 94.17
|
$
93.35
|
$
94.26
|
$
98.15
|
Crude Oil
Differentials:
|
|
|
|
|
|
WTI less WTS
(light/medium sour)
|
|
0.06
|
5.28
|
3.09
|
4.48
|
WTI less WCS (heavy
sour)
|
|
16.79
|
20.45
|
21.94
|
23.79
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
Gasoline
|
|
24.72
|
30.42
|
27.87
|
27.95
|
Heating
Oil
|
|
27.19
|
28.13
|
30.21
|
28.87
|
NYMEX 2-1-1 Crack
Spread
|
|
25.95
|
29.27
|
29.04
|
28.41
|
PADD II Group 3
Basis:
|
|
|
|
|
|
Gasoline
|
|
1.52
|
(3.24)
|
(2.88)
|
(5.00)
|
Ultra Low Sulfur
Diesel
|
|
2.13
|
2.16
|
2.11
|
0.28
|
PADD II Group 3
Product Crack:
|
|
|
|
|
|
Gasoline
|
|
26.23
|
27.18
|
24.99
|
22.95
|
Ultra Low Sulfur
Diesel
|
|
29.33
|
30.29
|
32.32
|
29.14
|
PADD II Group 3
2-1-1
|
|
27.78
|
28.74
|
28.66
|
26.05
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
|
(in millions,
except operating statistics)
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
Net sales
|
$
1,349.2
|
$
1,447.0
|
$
2,841.7
|
$
2,579.5
|
Cost of product
sold
|
1,117.6
|
1,219.4
|
2,312.6
|
2,192.5
|
Refining
margin*
|
231.6
|
227.6
|
529.1
|
387.0
|
Direct operating
expenses
|
50.1
|
43.6
|
102.3
|
87.4
|
Major scheduled
turnaround expenses
|
—
|
0.9
|
—
|
21.0
|
Depreciation and
amortization
|
17.7
|
17.4
|
35.2
|
34.7
|
Gross
profit*
|
$
163.8
|
$
165.7
|
$
391.6
|
$
243.9
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
216.6
|
$
309.4
|
$
507.2
|
$
455.8
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
Refining
margin*
|
$
21.71
|
$
20.61
|
$
24.27
|
$
20.27
|
FIFO impact
(favorable) unfavorable
|
(1.41)
|
7.41
|
(1.00)
|
3.61
|
Refining margin
adjusted for FIFO impact*
|
20.30
|
28.02
|
23.27
|
23.88
|
Gross
profit*
|
15.35
|
15.00
|
17.97
|
12.78
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.69
|
4.03
|
4.69
|
5.68
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
4.37
|
$
3.69
|
$
4.35
|
$
5.41
|
Barrels sold (barrels
per day)
|
125,851
|
132,534
|
129,777
|
110,034
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
Coffeyville
Refinery Throughput and Production Data:
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
Sweet
|
95,763
|
77.1%
|
100,166
|
78.4%
|
97,767
|
76.6%
|
86,041
|
77.7%
|
Medium
|
334
|
0.3%
|
187
|
0.1%
|
423
|
0.3%
|
2,817
|
2.5%
|
Heavy sour
|
21,168
|
17.0%
|
20,972
|
16.4%
|
22,244
|
17.4%
|
16,006
|
14.4%
|
Total
crude oil throughput
|
117,265
|
94.4%
|
121,325
|
94.9%
|
120,434
|
94.3%
|
104,864
|
94.6%
|
All other feedstocks
and blendstocks
|
6,962
|
5.6%
|
6,500
|
5.1%
|
7,265
|
5.7%
|
5,934
|
5.4%
|
Total
throughput
|
124,227
|
100.0%
|
127,825
|
100.0%
|
127,699
|
100.0%
|
110,798
|
100.0%
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
|
Gasoline
|
59,908
|
47.3%
|
62,351
|
47.9%
|
61,154
|
47.0%
|
56,310
|
50.1%
|
|
Distillate
|
53,471
|
42.2%
|
54,933
|
42.3%
|
54,531
|
41.9%
|
48,004
|
42.7%
|
|
Other (excluding
internally produced
fuel)
|
13,272
|
10.5%
|
12,753
|
9.8%
|
14,488
|
11.1%
|
8,123
|
7.2%
|
Total refining
production (excluding internally produced fuel)
|
126,651
|
100.0%
|
130,037
|
100.0%
|
130,173
|
100.0%
|
112,437
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2013
|
2012
|
2013
|
2012
|
|
|
(in millions,
except operating statistics)
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
Net sales
|
$
787.8
|
$
782.3
|
$
1,568.2
|
$
1,548.2
|
Cost of product
sold
|
658.8
|
647.5
|
1,269.2
|
1,305.4
|
Refining
margin*
|
129.0
|
134.8
|
299.0
|
242.8
|
Direct operating
expenses
|
33.7
|
25.5
|
67.6
|
53.4
|
Major scheduled
turnaround expenses
|
—
|
1.6
|
—
|
2.5
|
Depreciation and
amortization
|
9.5
|
8.4
|
18.8
|
16.7
|
Gross
profit*
|
$
85.8
|
$
99.3
|
$
212.6
|
$
170.2
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
119.8
|
$
158.5
|
$
292.0
|
$
269.0
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
Refining
margin*
|
$
18.67
|
$
21.47
|
$
22.46
|
$
20.97
|
FIFO impact
(favorable) unfavorable
|
(1.33)
|
3.76
|
(0.53)
|
2.25
|
Refining margin
adjusted for FIFO impact*
|
17.34
|
25.23
|
21.93
|
23.22
|
Gross
profit*
|
12.41
|
15.82
|
15.97
|
14.70
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.88
|
4.30
|
5.08
|
4.83
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
4.97
|
$
4.02
|
$
5.09
|
$
4.29
|
Barrels sold (barrels
per day)
|
74,463
|
74,072
|
73,302
|
71,556
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
Wynnewood Refinery
Throughput and Production Data:
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
Sweet
|
58,181
|
74.8%
|
48,745
|
68.0%
|
57,537
|
76.2%
|
43,740
|
65.6%
|
Medium
|
17,755
|
22.9%
|
20,301
|
28.3%
|
16,032
|
21.2%
|
19,911
|
29.9%
|
Heavy sour
|
—
|
—%
|
—
|
—%
|
—
|
—%
|
—
|
—%
|
Total
crude oil throughput
|
75,936
|
97.7%
|
69,046
|
96.3%
|
73,569
|
97.4%
|
63,651
|
95.5%
|
All other feedstocks
and blendstocks
|
1,762
|
2.3%
|
2,629
|
3.7%
|
1,983
|
2.6%
|
2,995
|
4.5%
|
Total
throughput
|
77,698
|
100.0%
|
71,675
|
100.0%
|
75,552
|
100.0%
|
66,646
|
100.0%
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
|
Gasoline
|
35,345
|
46.7%
|
34,621
|
50.2%
|
35,556
|
48.2%
|
32,821
|
51.0%
|
|
Distillate
|
31,146
|
41.1%
|
27,142
|
39.4%
|
29,701
|
40.2%
|
24,198
|
37.6%
|
|
Other (excluding
internally produced
fuel)
|
9,274
|
12.2%
|
7,157
|
10.4%
|
8,555
|
11.6%
|
7,273
|
11.4%
|
Total refining production (excluding internally produced fuel)
|
75,765
|
100.0%
|
68,920
|
100.0%
|
73,812
|
100.0%
|
64,292
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer Segment Operating Data
The
following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we own a
majority interest and serve as general partner. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Nitrogen Fertilizer segment for the
quarter ended June 30, 2013 are
included in CVR Partners' press release dated August 1, 2013.
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
|
2013
|
2012
|
2013
|
2012
|
|
|
(in millions,
except as noted)
|
Nitrogen
Fertilizer Segment Financial Results:
|
|
|
|
|
Net sales
|
$
88.8
|
$
81.4
|
$
170.2
|
$
159.7
|
Cost of product
sold
|
15.6
|
10.7
|
26.2
|
23.3
|
Direct operating
expenses
|
24.4
|
22.4
|
47.0
|
45.3
|
Major scheduled
turnaround expenses
|
—
|
—
|
—
|
—
|
Selling, general and
administrative expenses
|
5.5
|
7.0
|
11.1
|
13.0
|
Depreciation and
amortization
|
6.2
|
5.2
|
12.0
|
10.6
|
|
|
|
|
|
Operating
income
|
$
37.1
|
$
36.1
|
$
73.9
|
$
67.5
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
44.1
|
$
44.1
|
$
87.9
|
$
82.1
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
|
(in millions,
except as noted)
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
Production (thousand
tons):
|
|
|
|
|
Ammonia (gross
produced) (1)
|
91.3
|
108.9
|
202.7
|
198.2
|
Ammonia (net
available for sale) (1)(2)
|
2.2
|
34.9
|
32.9
|
59.9
|
UAN
|
225.2
|
180.0
|
421.3
|
334.6
|
|
|
|
|
|
Petroleum coke
consumed (thousand tons)
|
114.4
|
130.2
|
244.2
|
250.7
|
Petroleum coke (cost
per ton)
|
$
29
|
$ 31
|
$
30
|
$
36
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
Ammonia
|
7.1
|
29.4
|
34.6
|
59.3
|
UAN
|
217.3
|
177.2
|
411.4
|
335.5
|
|
|
|
|
|
Product pricing
(plant gate) (dollars per ton) (3):
|
|
|
|
|
Ammonia
|
$ 688
|
$ 568
|
$
668
|
$
591
|
UAN
|
$ 331
|
$ 329
|
$
314
|
$
322
|
|
|
|
|
|
On-stream factors
(4):
|
|
|
|
|
Gasification
|
91.6%
|
99.2%
|
95.5%
|
96.2%
|
Ammonia
|
89.1%
|
98.0%
|
93.9%
|
94.7%
|
UAN
|
86.5%
|
96.7%
|
89.7%
|
90.1%
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$ 653
|
$ 585
|
$
674
|
$
585
|
UAN — Mid Corn belt
(dollars per ton)
|
$ 381
|
$ 417
|
$
380
|
$
380
|
|
|
|
|
|
|
|
|
Cost of product sold, direct operating expenses and selling,
general and administrative expenses are all reflected exclusive of
depreciation and amortization.
* See Use of Non-GAAP Financial Measures below.
(1) Gross tons produced for ammonia represent the total
ammonia produced, including ammonia produced that was upgraded into
UAN. As a result of the recently completed UAN expansion project,
we expect to upgrade substantially all of the ammonia we produce
into UAN. The net tons available for sale represent the ammonia
available for sale that was not upgraded into UAN.
(2) In addition to the produced ammonia, the Nitrogen
Fertilizer segment acquired approximately 4,000 tons of ammonia,
which was upgraded to UAN during the three and six months ended
June 30, 2013.
(3) 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.
(4) On-stream factor is the total number of hours operated
divided by the total number of hours in the reporting period and is
included as a measure of operating efficiency. Excluding the impact
of the unplanned Linde air separation unit outages and the
unplanned downtime associated with weather issues, the on-stream
factors for the three months ended June 30,
2013 would have been 99.6% for gasifier, 99.1% for ammonia
and 97.1% for UAN.
Excluding the impact of the UAN expansion coming on-line, the
unplanned Linde air separation unit outages and the unplanned
downtime associated with weather issues, the on-stream factors for
the six months ended June 30, 2013
would have been 99.6% for gasifier, 98.9% for ammonia and 97.7% for
UAN.
Use of Non-GAAP Financial Measures
To supplement the
actual results in accordance with GAAP for the applicable periods,
the Company also uses non-GAAP measures as discussed below, which
are reconciled to our GAAP-based results below. These non-GAAP
financial measures should not be considered an alternative for GAAP
results. The adjustments are provided to enhance an overall
understanding of the Company's financial performance for the
applicable periods and are indicators management believes are
relevant and useful for planning and forecasting future
periods.
Adjusted net income 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.
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
|
(in millions,
except per share data)
|
Reconciliation of
Net Income to Adjusted Net Income:
|
|
|
|
|
Income before income
tax expense
|
$
371.2
|
$
256.4
|
$
677.7
|
$
230.7
|
Adjustments:
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
(24.2)
|
105.4
|
(29.0)
|
95.0
|
Share-based
compensation
|
4.3
|
17.8
|
10.3
|
21.9
|
Loss on
extinguishment of debt
|
—
|
—
|
26.1
|
—
|
Major scheduled
turnaround expenses
|
—
|
2.5
|
—
|
23.5
|
Loss on disposition
of fixed assets
|
—
|
—
|
—
|
—
|
(Gain) loss on
derivatives, net
|
(120.5)
|
(38.8)
|
(100.5)
|
108.5
|
Current period
settlements on derivative contracts
|
14.7
|
(8.1)
|
(37.8)
|
(27.2)
|
Expenses associated
with proxy matters
|
—
|
29.4
|
—
|
44.2
|
Expenses associated
with the acquisition of Gary-Williams (1)
|
—
|
4.6
|
—
|
8.3
|
Adjusted net income
before income tax expense and noncontrolling interest
|
245.5
|
369.2
|
546.8
|
504.9
|
Adjusted net income
attributable to noncontrolling interest
|
(59.5)
|
(11.4)
|
(116.1)
|
(21.2)
|
Income tax expense,
as adjusted
|
(61.5)
|
(134.7)
|
(149.7)
|
(188.0)
|
Adjusted net income
attributable to CVR Energy stockholders
|
$
124.5
|
$
223.1
|
$
281.0
|
$
295.7
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
1.43
|
$
2.52
|
$
3.24
|
$
3.34
|
|
|
(1)
|
Legal, professional
and integration expenses related to the December 2011 acquisition
of Gary-Williams.
|
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 refineries' 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.
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 refineries' 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.
Gross profit is calculated as the difference between net sales,
cost of product sold (exclusive of depreciation and amortization),
direct operating expenses (exclusive of depreciation and
amortization), major scheduled turnaround expenses and depreciation
and amortization. Gross profit per throughput barrel is
calculated as gross profit as derived above divided by our
refineries' crude oil throughput volumes for the respective periods
presented. Gross profit is a non-GAAP measure that should not be
substituted for operating income. Management believes it is
important to investors in evaluating our refineries' performance
and our ongoing operating results. Our calculation of gross profit
may differ from similar calculations of other companies in our
industry, thereby limiting its usefulness as a comparative
measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income
before (i) interest expense and other financing costs, net of
interest income, (ii) income tax expense and (iii) depreciation and
amortization. Adjusted EBITDA represents EBITDA adjusted for
FIFO impacts (favorable) unfavorable, share-based compensation,
major scheduled turnaround expenses, loss on disposition of fixed
assets, unrealized gains and losses on derivatives, loss on
extinguishment of debt and expenses associated with the
Gary-Williams acquisition. EBITDA and Adjusted EBITDA are not
recognized terms under GAAP and should not be substituted for net
income or cash flow from operations. Management believes that
EBITDA and Adjusted EBITDA enables investors to better understand
and evaluate our ongoing operating results and allows for greater
transparency in reviewing our overall financial, operational and
economic performance. EBITDA and Adjusted EBITDA presented by
other companies may not be comparable to our presentation, since
each company may define these terms differently. Below is a
reconciliation of net income to EBITDA and EBITDA to Adjusted
EBITDA for the three and six months ended June 30, 2013 and 2012:
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
|
(in
millions)
|
Net income
attributable to CVR Energy stockholders
|
$
183.4
|
$
154.7
|
$
348.4
|
$
129.5
|
Add:
|
|
|
|
|
Interest expense and other financing costs, net of interest
income
|
12.2
|
18.8
|
27.3
|
38.0
|
Income tax expense
|
99.5
|
91.1
|
193.3
|
81.4
|
Depreciation and amortization
|
35.0
|
32.2
|
69.2
|
64.3
|
EBITDA adjustments included in noncontrolling interest
|
(11.9)
|
(1.8)
|
(19.9)
|
(3.9)
|
EBITDA
|
318.2
|
295.0
|
618.3
|
309.3
|
Add:
|
|
|
|
|
FIFO impacts (favorable) unfavorable
|
(24.2)
|
105.4
|
(29.0)
|
95.0
|
Share-based compensation
|
4.3
|
17.8
|
10.3
|
21.9
|
Major scheduled turnaround expenses
|
—
|
2.5
|
—
|
23.5
|
(Gain) loss on derivatives, net
|
(120.5)
|
(38.8)
|
(100.5)
|
108.5
|
Current period settlements on derivative contracts
|
14.7
|
(8.1)
|
(37.8)
|
(27.2)
|
Loss on extinguishment of debt
|
—
|
—
|
26.1
|
—
|
Expenses associated with proxy matter
|
—
|
29.4
|
—
|
44.2
|
Expenses associated with Gary-Williams acquisition
|
—
|
4.6
|
—
|
8.3
|
Adjustments included in noncontrolling interest
|
28.8
|
(0.8)
|
19.9
|
(1.4)
|
Adjusted
EBITDA
|
$ 221.3
|
$ 407.0
|
$ 507.3
|
$ 582.1
|
Adjusted Petroleum and Nitrogen Fertilizer EBITDA represents
operating income adjusted for FIFO impacts (favorable) unfavorable;
share-based compensation, non-cash; major scheduled turnaround
expenses; current period settlements on derivative contracts; loss
on disposition of fixed assets; depreciation and amortization and
other income (expense). We present Adjusted EBITDA by operating
segment because it is the starting point for CVR Refining's and CVR
Partner's available cash for distribution. 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. Management believes that Adjusted EBITDA by operating
segment enables investors to better understand CVR Refining's and
CVR Partner's ability to make distributions to their common
unitholders, evaluate our ongoing operating results and
allows for greater transparency in reviewing our overall financial,
operational and economic performance. Adjusted EBITDA presented by
other companies may not be comparable to our presentation, since
each company may define these terms differently. Below is a
reconciliation of operating income to adjusted EBITDA for the
petroleum and nitrogen fertilizer segments for the three and six
months ended June 30, 2013 and
2012:
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
|
(in
millions)
|
Petroleum:
|
|
|
|
|
Petroleum operating
income
|
$
229.1
|
$
248.9
|
$
564.7
|
$
383.8
|
FIFO impacts (favorable) unfavorable
|
(24.2)
|
105.4
|
(29.0)
|
95.0
|
Share-based compensation, non-cash
|
2.5
|
5.4
|
6.1
|
6.4
|
Major scheduled turnaround expenses
|
—
|
2.5
|
—
|
23.5
|
Loss on disposition of fixed assets
|
—
|
—
|
—
|
—
|
Current period settlements on derivative contracts
|
14.7
|
(8.1)
|
(37.8)
|
(27.2)
|
Depreciation and amortization
|
28.4
|
26.6
|
56.4
|
52.9
|
Other income
|
0.1
|
0.7
|
0.1
|
0.8
|
Adjusted Petroleum
EBITDA
|
$
250.6
|
$
381.4
|
$
560.5
|
$
535.2
|
|
|
|
|
Three Months
Ended
June
30,
|
Six Months
Ended
June
30,
|
|
2013
|
2012
|
2013
|
2012
|
|
(in
millions)
|
Nitrogen
Fertilizer:
|
|
|
|
|
Nitrogen Fertilizer
operating income
|
$
37.1
|
$
36.1
|
$
73.9
|
$
67.5
|
Share-based compensation, non-cash
|
0.8
|
2.8
|
2.0
|
4.0
|
Depreciation and amortization
|
6.2
|
5.2
|
12.0
|
10.6
|
Major scheduled turnaround expenses
|
—
|
—
|
—
|
—
|
Other income, net
|
—
|
—
|
—
|
—
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
44.1
|
$
44.1
|
$
87.9
|
$
82.1
|
Derivatives Summary. To reduce the basis risk between the
price of products for Group 3 and that of the NYMEX associated with
selling forward derivative contracts for NYMEX crack spreads, we
may enter into basis swap positions to lock the price difference.
If the difference between the price of products on the NYMEX and
Group 3 (or some other price benchmark as we may deem appropriate)
is different than the value contracted in the swap, then we will
receive from or owe to the counterparty the difference on each unit
of product contracted in the swap, thereby completing the locking
of our margin. From time to time our Petroleum segment holds
various NYMEX positions through a third-party clearing house. In
addition, the Petroleum segment enters into commodity swap
contracts. The physical volumes are not exchanged and these
contracts are net settled with cash.
The table below summarizes our open commodity derivatives
positions as of June 30, 2013.
The positions are primarily in the form of 'crack spread' swap
agreements with financial counterparties, wherein the Petroleum
segment will receive the fixed prices noted below.
Commodity
Swaps
|
Barrels
|
Fixed
Price(1)
|
Third Quarter
2013
|
5,775,000
|
$
25.92
|
Fourth Quarter
2013
|
4,875,000
|
26.98
|
|
|
|
First Quarter
2014
|
3,000,000
|
33.50
|
Second Quarter
2014
|
1,800,000
|
31.76
|
Third Quarter
2014
|
2,250,000
|
30.25
|
Fourth Quarter
2014
|
2,250,000
|
30.26
|
|
|
|
Total
|
19,950,000
|
$
28.82
|
|
|
(1)
|
Weighted-average
price of all positions for period indicated.
|
SOURCE CVR Energy, Inc.