SUGAR LAND, Texas, Oct. 29, 2015 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced third quarter 2015 net income of
$57.9 million, or 67 cents per diluted share, on net sales of
$1,408.8 million, compared to net
income of $7.9 million, or
9 cents per diluted share, on net
sales of $2,279.9 million for the
2014 third quarter. Third quarter 2015 adjusted EBITDA, a non-GAAP
financial measure, was $153.8
million, compared to third quarter 2014 adjusted EBITDA of
$90.5 million.
For the first nine months of 2015, net income was $214.6 million, or $2.47 per diluted share, on net sales of
$4,421.9 million, compared to net
income of $218.3 million, or
$2.51 per diluted share, on net sales
of $7,267.7 million for the same
period a year earlier. Adjusted EBITDA for the first nine months of
2015 was $463.2 million, compared to
adjusted EBITDA of $391.9 million for
the first nine months of 2014.
"CVR Refining reported a solid quarter, driven by high
throughputs and favorable product margins," said Jack Lipinski, CVR Energy's chief executive
officer. "The Coffeyville and
Wynnewood refineries posted a
combined crude throughput of 200,156 barrels per day (bpd).
"CVR Partners had a difficult quarter. We expected CVR Partners'
results to be lower due to the approximate 18-day, scheduled plant
turnaround, but overall results were severely impacted by three
unplanned outages at the Linde facility, which supplies oxygen and
nitrogen to CVR Partners' facility," Lipinski said. "These outages
resulted in approximately 18 days of additional lost production for
CVR Partners' facility during the quarter. However, as a result of
facility upgrades made during the third quarter turnaround, the
plant is now posting historically high production rates."
CVR Energy also announced a third quarter 2015 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
Nov. 16, 2015, to stockholders of
record on Nov. 9, 2015.
CVR Energy's third quarter cash dividend brings the cumulative
cash dividends paid or declared for the first nine months of 2015
to $1.50 per share.
Today, CVR Refining announced a 2015 third quarter cash
distribution of $1.01 per common
unit. CVR Partners announced that it will not pay a cash
distribution for the 2015 third quarter.
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
third quarter 2015 operating income of $137.2 million on net sales of $1,361.6 million, compared to operating income of
$3.9 million on net sales of
$2,215.2 million in the third quarter
of 2014.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $18.65 in the 2015 third quarter, compared to
$13.16 for the same period in
2014.
Direct operating expenses, excluding major scheduled turnaround
expenses, per crude oil throughput barrel, exclusive of
depreciation and amortization, for the 2015 third quarter was
$5.27, compared to $6.48 in the third quarter of 2014.
Third quarter 2015 throughputs of crude oil and all other
feedstocks and blendstocks for the Coffeyville and Wynnewood refineries totaled 210,917 bpd.
Throughputs of crude oil and all other feedstocks and blendstocks
for both refineries totaled 183,814 bpd for the same period in
2014.
Nitrogen Fertilizers Business
The fertilizer business, which is operated by CVR Partners,
reported a third quarter 2015 operating loss of $11.8 million on net sales of $49.3 million, compared to operating income of
$14.4 million on net sales of
$66.7 million for the third quarter
of 2014.
For the third quarter of 2015, average realized gate prices for
UAN and ammonia were $227 per ton and
$478 per ton, respectively, compared
to $254 per ton and $503 per ton, respectively, for the same period
in 2014.
CVR Partners produced 66,300 tons of ammonia and purchased an
additional 7,500 tons of ammonia during the third quarter of 2015,
of which 12,100 net tons were available for sale while the rest was
upgraded to 152,400 tons of UAN. In the 2014 third quarter, the
plant produced 99,800 tons of ammonia and purchased an additional
4,000 tons of ammonia, of which 11,800 net tons were available for
sale while the remainder was upgraded to 223,500 tons of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$501.1 million for CVR Refining and
$33.2 million for CVR Partners, was
$1,012.0 million at Sept. 30, 2015. Consolidated total debt was
$673.9 million at Sept. 30, 2015. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Third Quarter 2015 Earnings Conference Call
CVR Energy previously announced that it will host its third
quarter 2015 Earnings Conference Call for analysts and investors on
Thursday, Oct. 29, at 3 p.m. Eastern. The Earnings Conference Call may
also include discussion of company developments, forward-looking
information and other material information about business and
financial matters.
The Earnings Conference Call will be broadcast live over the
Internet at https://www.webcaster4.com/Webcast/Page/1003/10989. 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
https://www.webcaster4.com/Webcast/Page/1003/10989. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13622044.
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, any subsequently filed Quarterly
Reports on Form 10-Q and our other SEC filings. 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 Contact:
Jay
Finks
CVR Energy, Inc.
(281) 207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Brandee Stephens
CVR Energy, Inc.
(913) 982-0482
MediaRelations@CVREnergy.com
CVR Energy, Inc.
Financial and Operations Data (all information in this
release is unaudited unless noted otherwise).
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,408.8
|
|
|
$
|
2,279.9
|
|
|
$
|
4,421.9
|
|
|
$
|
7,267.7
|
|
Cost of product
sold
|
1,076.7
|
|
|
2,066.7
|
|
|
3,342.5
|
|
|
6,332.6
|
|
Direct operating
expenses
|
145.8
|
|
|
136.8
|
|
|
372.7
|
|
|
380.3
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Selling, general and
administrative expenses
|
26.1
|
|
|
31.8
|
|
|
78.5
|
|
|
86.2
|
|
Depreciation and
amortization
|
38.7
|
|
|
37.8
|
|
|
123.2
|
|
|
113.7
|
|
Operating
income
|
121.5
|
|
|
6.8
|
|
|
532.3
|
|
|
354.9
|
|
Interest expense and
other financing costs
|
(11.9)
|
|
|
(9.4)
|
|
|
(36.5)
|
|
|
(28.8)
|
|
Interest
income
|
0.3
|
|
|
0.3
|
|
|
0.7
|
|
|
0.7
|
|
Gain (loss) on
derivatives, net
|
11.8
|
|
|
25.7
|
|
|
(52.2)
|
|
|
171.1
|
|
Other income
(expense), net
|
0.3
|
|
|
2.1
|
|
|
36.6
|
|
|
(0.1)
|
|
Income before income
tax expense
|
122.0
|
|
|
25.5
|
|
|
480.9
|
|
|
497.8
|
|
Income tax
expense
|
23.1
|
|
|
4.2
|
|
|
105.2
|
|
|
118.8
|
|
Net income
|
98.9
|
|
|
21.3
|
|
|
375.7
|
|
|
379.0
|
|
Less: Net income
attributable to noncontrolling interest
|
41.0
|
|
|
13.4
|
|
|
161.1
|
|
|
160.7
|
|
Net income
attributable to CVR Energy stockholders
|
$
|
57.9
|
|
|
$
|
7.9
|
|
|
$
|
214.6
|
|
|
$
|
218.3
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.67
|
|
|
$
|
0.09
|
|
|
$
|
2.47
|
|
|
$
|
2.51
|
|
Diluted earnings per
share
|
$
|
0.67
|
|
|
$
|
0.09
|
|
|
$
|
2.47
|
|
|
$
|
2.51
|
|
Dividends declared
per share
|
$
|
0.50
|
|
|
$
|
2.75
|
|
|
$
|
1.50
|
|
|
$
|
4.25
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
153.8
|
|
|
$
|
90.5
|
|
|
$
|
463.2
|
|
|
$
|
391.9
|
|
Adjusted net
income*
|
$
|
82.4
|
|
|
$
|
37.0
|
|
|
$
|
239.4
|
|
|
$
|
194.0
|
|
Adjusted net income,
per diluted share*
|
$
|
0.95
|
|
|
$
|
0.43
|
|
|
$
|
2.76
|
|
|
$
|
2.23
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30, 2015
|
|
As of December 31,
2014
|
|
|
|
(audited)
|
|
(in
millions)
|
Balance Sheet
Data:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,012.0
|
|
|
$
|
753.7
|
|
Working
capital
|
960.1
|
|
|
1,033.0
|
|
Total
assets
|
3,541.4
|
|
|
3,462.5
|
|
Total debt, including
current portion
|
673.9
|
|
|
674.9
|
|
Total CVR
stockholders' equity
|
1,072.5
|
|
|
988.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
235.9
|
|
|
$
|
125.3
|
|
|
$
|
612.3
|
|
|
$
|
530.8
|
|
Investing
activities
|
(55.1)
|
|
|
(56.6)
|
|
|
(73.8)
|
|
|
(249.6)
|
|
Financing
activities
|
(106.5)
|
|
|
(274.3)
|
|
|
(280.2)
|
|
|
(330.2)
|
|
Net cash
flow
|
$
|
74.3
|
|
|
$
|
(205.6)
|
|
|
$
|
258.3
|
|
|
$
|
(49.0)
|
|
Segment Information
Our operations are organized into two reportable segments,
Petroleum and Nitrogen Fertilizer. Our operations that are not
included in the Petroleum and Nitrogen Fertilizer segments are
included in the Corporate and Other segment (along with elimination
of intersegment transactions). The Petroleum segment is operated by
CVR Refining, LP ("CVR Refining"), in which we own a majority
interest as well as the general partner. The Petroleum segment
includes the operations of the Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with the
crude oil gathering and pipeline systems. Detailed operating
results for the Petroleum segment for the quarter and nine months
ended September 30, 2015 are included
in CVR Refining's press release dated October 29, 2015. 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 and nine months ended September 30,
2015 are included in CVR Partners' press release dated
October 29, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,361.6
|
|
|
$
|
49.3
|
|
|
$
|
(2.1)
|
|
|
$
|
1,408.8
|
|
Cost of product
sold
|
1,063.7
|
|
|
14.5
|
|
|
(1.5)
|
|
|
1,076.7
|
|
Direct operating
expenses(1)
|
97.0
|
|
|
26.6
|
|
|
—
|
|
|
123.6
|
|
Major scheduled
turnaround expenses
|
15.6
|
|
|
6.6
|
|
|
—
|
|
|
22.2
|
|
Flood insurance
recovery(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Selling, general and
administrative
|
18.2
|
|
|
6.0
|
|
|
1.9
|
|
|
26.1
|
|
Depreciation and
amortization
|
29.9
|
|
|
7.4
|
|
|
1.4
|
|
|
38.7
|
|
Operating income
(loss)
|
$
|
137.2
|
|
|
$
|
(11.8)
|
|
|
$
|
(3.9)
|
|
|
$
|
121.5
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
45.5
|
|
|
$
|
6.4
|
|
|
$
|
3.3
|
|
|
$
|
55.2
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
Net sales
|
$
|
4,213.6
|
|
|
$
|
223.2
|
|
|
$
|
(14.9)
|
|
|
$
|
4,421.9
|
|
Cost of product
sold
|
3,300.8
|
|
|
55.7
|
|
|
(14.0)
|
|
|
3,342.5
|
|
Direct operating
expenses(1)
|
272.7
|
|
|
75.7
|
|
|
0.1
|
|
|
348.5
|
|
Major scheduled
turnaround expenses
|
17.2
|
|
|
7.0
|
|
|
—
|
|
|
24.2
|
|
Flood insurance
recovery(2)
|
(27.3)
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
Selling, general and
administrative
|
54.9
|
|
|
15.2
|
|
|
8.4
|
|
|
78.5
|
|
Depreciation and
amortization
|
98.1
|
|
|
21.2
|
|
|
3.9
|
|
|
123.2
|
|
Operating income
(loss)
|
$
|
497.2
|
|
|
$
|
48.4
|
|
|
$
|
(13.3)
|
|
|
$
|
532.3
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
123.6
|
|
|
$
|
12.4
|
|
|
$
|
5.9
|
|
|
$
|
141.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
Three Months Ended
September 30, 2014
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,215.2
|
|
|
$
|
66.7
|
|
|
$
|
(2.0)
|
|
|
$
|
2,279.9
|
|
Cost of product
sold
|
2,053.7
|
|
|
15.4
|
|
|
(2.4)
|
|
|
2,066.7
|
|
Direct operating
expenses(1)
|
105.1
|
|
|
26.1
|
|
|
0.1
|
|
|
131.3
|
|
Major scheduled
turnaround expenses
|
5.5
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
Selling, general and
administrative
|
17.3
|
|
|
4.0
|
|
|
10.5
|
|
|
31.8
|
|
Depreciation and
amortization
|
29.7
|
|
|
6.8
|
|
|
1.3
|
|
|
37.8
|
|
Operating income
(loss)
|
$
|
3.9
|
|
|
$
|
14.4
|
|
|
$
|
(11.5)
|
|
|
$
|
6.8
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
48.9
|
|
|
$
|
6.0
|
|
|
$
|
1.6
|
|
|
$
|
56.5
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2014
|
|
|
|
|
|
|
|
Net sales
|
$
|
7,056.9
|
|
|
$
|
224.3
|
|
|
$
|
(13.5)
|
|
|
$
|
7,267.7
|
|
Cost of product
sold
|
6,289.6
|
|
|
56.6
|
|
|
(13.6)
|
|
|
6,332.6
|
|
Direct operating
expenses(1)
|
297.5
|
|
|
77.2
|
|
|
0.1
|
|
|
374.8
|
|
Major scheduled
turnaround expenses
|
5.5
|
|
|
—
|
|
|
—
|
|
|
5.5
|
|
Selling, general and
administrative
|
54.0
|
|
|
13.9
|
|
|
18.3
|
|
|
86.2
|
|
Depreciation and
amortization
|
89.9
|
|
|
20.3
|
|
|
3.5
|
|
|
113.7
|
|
Operating income
(loss)
|
$
|
320.4
|
|
|
$
|
56.3
|
|
|
$
|
(21.8)
|
|
|
$
|
354.9
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
154.2
|
|
|
$
|
13.5
|
|
|
$
|
3.7
|
|
|
$
|
171.4
|
|
|
|
|
|
|
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
|
(2)
|
Represents an
insurance recovery from Coffeyville Resources Refining and
Marketing, LLC's ("CRRM") environmental insurance carriers as a
result of the flood and crude oil discharge at the Coffeyville
refinery on June/July 2007.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
September 30,
2015
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
501.1
|
|
|
$
|
33.2
|
|
|
$
|
477.7
|
|
|
$
|
1,012.0
|
|
Total
assets
|
2,506.2
|
|
|
523.8
|
|
|
511.4
|
|
|
3,541.4
|
|
Total debt, including
current portion
|
580.4
|
|
|
125.0
|
|
|
(31.5)
|
|
|
673.9
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
370.2
|
|
|
$
|
79.9
|
|
|
$
|
303.6
|
|
|
$
|
753.7
|
|
Total
assets
|
2,417.8
|
|
|
578.8
|
|
|
465.9
|
|
|
3,462.5
|
|
Total debt, including
current portion
|
581.4
|
|
|
125.0
|
|
|
(31.5)
|
|
|
674.9
|
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operated by CVR Refining, of which
we own a majority interest and serve as the general partner, and
the 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 and
nine months ended September 30, 2015
are included in CVR Refining's press release dated October 29, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,361.6
|
|
|
$
|
2,215.2
|
|
|
$
|
4,213.6
|
|
|
$
|
7,056.9
|
|
Cost of product
sold
|
1,063.7
|
|
|
2,053.7
|
|
|
3,300.8
|
|
|
6,289.6
|
|
Direct operating
expenses
|
97.0
|
|
|
105.1
|
|
|
272.7
|
|
|
297.5
|
|
Major scheduled
turnaround expenses
|
15.6
|
|
|
5.5
|
|
|
17.2
|
|
|
5.5
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Selling, general and
administrative expenses
|
18.2
|
|
|
17.3
|
|
|
54.9
|
|
|
54.0
|
|
Depreciation and
amortization
|
29.9
|
|
|
29.7
|
|
|
98.1
|
|
|
89.9
|
|
Operating
income
|
137.2
|
|
|
3.9
|
|
|
497.2
|
|
|
320.4
|
|
Interest expense and
other financing costs
|
(10.4)
|
|
|
(7.9)
|
|
|
(32.2)
|
|
|
(24.5)
|
|
Interest
income
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
Gain (loss) on
derivatives, net
|
11.8
|
|
|
25.7
|
|
|
(52.2)
|
|
|
171.1
|
|
Other income
(expense), net
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
(0.1)
|
|
Income before income
tax expense
|
138.9
|
|
|
21.8
|
|
|
413.4
|
|
|
467.2
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
|
$
|
138.9
|
|
|
$
|
21.8
|
|
|
$
|
413.4
|
|
|
$
|
467.2
|
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
297.9
|
|
|
$
|
161.5
|
|
|
$
|
912.8
|
|
|
$
|
767.3
|
|
Gross
profit*
|
$
|
155.4
|
|
|
$
|
21.2
|
|
|
$
|
552.1
|
|
|
$
|
374.4
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
343.5
|
|
|
$
|
213.5
|
|
|
$
|
946.5
|
|
|
$
|
773.5
|
|
Adjusted Petroleum
EBITDA*
|
$
|
229.6
|
|
|
$
|
129.9
|
|
|
$
|
585.6
|
|
|
$
|
517.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars per
barrel)
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
16.17
|
|
|
$
|
9.96
|
|
|
$
|
16.38
|
|
|
$
|
14.29
|
|
FIFO impact
(favorable) unfavorable
|
2.48
|
|
|
3.20
|
|
|
0.60
|
|
|
0.11
|
|
Refining margin
adjusted for FIFO impact*
|
18.65
|
|
|
13.16
|
|
|
16.98
|
|
|
14.40
|
|
Gross
profit*
|
8.44
|
|
|
1.31
|
|
|
9.91
|
|
|
6.97
|
|
Gross profit
excluding flood insurance recovery*
|
8.44
|
|
|
1.31
|
|
|
9.42
|
|
|
6.97
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
6.11
|
|
|
6.82
|
|
|
5.20
|
|
|
5.64
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
5.27
|
|
|
6.48
|
|
|
4.89
|
|
|
5.54
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
5.79
|
|
|
6.52
|
|
|
4.88
|
|
|
5.32
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
4.99
|
|
|
$
|
6.20
|
|
|
$
|
4.59
|
|
|
$
|
5.23
|
|
Barrels sold (barrels
per day)
|
211,440
|
|
|
184,262
|
|
|
217,696
|
|
|
208,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Petroleum Segment
Summary Refining Throughput and Production Data
(bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
185,228
|
|
|
87.8
|
%
|
|
164,067
|
|
|
89.3
|
%
|
|
184,481
|
|
|
85.5
|
%
|
|
178,390
|
|
|
86.5
|
%
|
Medium
|
2,037
|
|
|
1.0
|
%
|
|
1,610
|
|
|
0.9
|
%
|
|
3,220
|
|
|
1.5
|
%
|
|
1,558
|
|
|
0.7
|
%
|
Heavy sour
|
12,891
|
|
|
6.1
|
%
|
|
10,690
|
|
|
5.8
|
%
|
|
16,476
|
|
|
7.7
|
%
|
|
16,732
|
|
|
8.1
|
%
|
Total crude oil
throughput
|
200,156
|
|
|
94.9
|
%
|
|
176,367
|
|
|
96.0
|
%
|
|
204,177
|
|
|
94.7
|
%
|
|
196,680
|
|
|
95.3
|
%
|
All other feedstocks
and blendstocks
|
10,761
|
|
|
5.1
|
%
|
|
7,447
|
|
|
4.0
|
%
|
|
11,487
|
|
|
5.3
|
%
|
|
9,655
|
|
|
4.7
|
%
|
Total
throughput
|
210,917
|
|
|
100.0
|
%
|
|
183,814
|
|
|
100.0
|
%
|
|
215,664
|
|
|
100.0
|
%
|
|
206,335
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
103,479
|
|
|
48.9
|
%
|
|
88,633
|
|
|
48.1
|
%
|
|
106,650
|
|
|
49.1
|
%
|
|
100,630
|
|
|
48.5
|
%
|
Distillate
|
88,479
|
|
|
41.8
|
%
|
|
78,711
|
|
|
42.8
|
%
|
|
91,262
|
|
|
42.0
|
%
|
|
87,477
|
|
|
42.2
|
%
|
Other (excluding
internally produced fuel)
|
19,608
|
|
|
9.3
|
%
|
|
16,791
|
|
|
9.1
|
%
|
|
19,210
|
|
|
8.9
|
%
|
|
19,361
|
|
|
9.3
|
%
|
Total refining
production (excluding internally produced fuel)
|
211,566
|
|
|
100.0
|
%
|
|
184,135
|
|
|
100.0
|
%
|
|
217,122
|
|
|
100.0
|
%
|
|
207,468
|
|
|
100.0
|
%
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.72
|
|
|
|
|
$
|
2.69
|
|
|
|
|
$
|
1.69
|
|
|
|
|
$
|
2.74
|
|
|
|
Distillate
|
1.60
|
|
|
|
|
2.85
|
|
|
|
|
1.70
|
|
|
|
|
2.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
46.50
|
|
|
$
|
97.25
|
|
|
$
|
51.01
|
|
|
$
|
99.62
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
WTI less WTS
(light/medium sour)
|
(1.62)
|
|
|
8.78
|
|
|
(0.47)
|
|
|
7.19
|
|
WTI less WCS (heavy
sour)
|
15.14
|
|
|
18.34
|
|
|
12.79
|
|
|
19.47
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
Gasoline
|
22.23
|
|
|
18.13
|
|
|
22.30
|
|
|
19.83
|
|
Heating
Oil
|
20.05
|
|
|
21.56
|
|
|
22.87
|
|
|
23.41
|
|
NYMEX 2-1-1 Crack
Spread
|
21.14
|
|
|
19.85
|
|
|
22.59
|
|
|
21.62
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
Gasoline
|
0.63
|
|
|
(3.82)
|
|
|
(2.99)
|
|
|
(5.24)
|
|
Ultra Low Sulfur
Diesel
|
0.27
|
|
|
0.56
|
|
|
(2.61)
|
|
|
(0.36)
|
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
|
|
|
|
Gasoline
|
22.87
|
|
|
14.32
|
|
|
19.31
|
|
|
14.58
|
|
Ultra Low Sulfur
Diesel
|
20.31
|
|
|
22.11
|
|
|
20.26
|
|
|
23.05
|
|
PADD II Group 3
2-1-1
|
21.59
|
|
|
18.21
|
|
|
19.78
|
|
|
18.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except operating statistics)
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
840.0
|
|
|
$
|
1,383.5
|
|
|
$
|
2,698.0
|
|
|
$
|
4,541.3
|
|
Cost of product
sold
|
669.9
|
|
|
1,311.4
|
|
|
2,135.6
|
|
|
4,068.6
|
|
Refining
margin*
|
170.1
|
|
|
72.1
|
|
|
562.4
|
|
|
472.7
|
|
Direct operating
expenses
|
54.0
|
|
|
62.2
|
|
|
155.6
|
|
|
169.2
|
|
Major scheduled
turnaround expenses
|
15.6
|
|
|
5.5
|
|
|
17.2
|
|
|
5.5
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Depreciation and
amortization
|
15.7
|
|
|
17.6
|
|
|
54.7
|
|
|
54.4
|
|
Gross profit
(loss)*
|
$
|
84.8
|
|
|
$
|
(13.2)
|
|
|
$
|
362.2
|
|
|
$
|
243.6
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
201.3
|
|
|
$
|
111.4
|
|
|
$
|
582.9
|
|
|
$
|
476.1
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
15.57
|
|
|
$
|
8.11
|
|
|
$
|
16.42
|
|
|
$
|
14.76
|
|
FIFO impact
(favorable) unfavorable
|
2.85
|
|
|
4.43
|
|
|
0.60
|
|
|
0.11
|
|
Refining margin
adjusted for FIFO impact*
|
18.42
|
|
|
12.54
|
|
|
17.02
|
|
|
14.87
|
|
Gross profit
(loss)*
|
7.76
|
|
|
(1.48)
|
|
|
10.58
|
|
|
7.61
|
|
Gross profit (loss)
excluding flood insurance recovery*
|
7.76
|
|
|
(1.48)
|
|
|
9.78
|
|
|
7.61
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
6.37
|
|
|
7.62
|
|
|
5.05
|
|
|
5.46
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.95
|
|
|
7.00
|
|
|
4.54
|
|
|
5.29
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
5.95
|
|
|
7.01
|
|
|
4.61
|
|
|
4.96
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
4.62
|
|
|
$
|
6.44
|
|
|
$
|
4.15
|
|
|
$
|
4.81
|
|
Barrels sold (barrels
per day)
|
127,089
|
|
|
104,836
|
|
|
137,365
|
|
|
128,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
105,314
|
|
|
83.3
|
%
|
|
85,835
|
|
|
83.8
|
%
|
|
106,256
|
|
|
79.2
|
%
|
|
100,063
|
|
|
79.9
|
%
|
Medium
|
552
|
|
|
0.4
|
%
|
|
—
|
|
|
—
|
%
|
|
2,732
|
|
|
2.0
|
%
|
|
493
|
|
|
0.4
|
%
|
Heavy sour
|
12,891
|
|
|
10.2
|
%
|
|
10,690
|
|
|
10.4
|
%
|
|
16,476
|
|
|
12.3
|
%
|
|
16,732
|
|
|
13.4
|
%
|
Total crude oil
throughput
|
118,757
|
|
|
93.9
|
%
|
|
96,525
|
|
|
94.2
|
%
|
|
125,464
|
|
|
93.5
|
%
|
|
117,288
|
|
|
93.7
|
%
|
All other feedstocks
and blendstocks
|
7,753
|
|
|
6.1
|
%
|
|
5,882
|
|
|
5.8
|
%
|
|
8,691
|
|
|
6.5
|
%
|
|
7,880
|
|
|
6.3
|
%
|
Total
throughput
|
126,510
|
|
|
100.0
|
%
|
|
102,407
|
|
|
100.0
|
%
|
|
134,155
|
|
|
100.0
|
%
|
|
125,168
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
60,849
|
|
|
47.3
|
%
|
|
50,397
|
|
|
48.2
|
%
|
|
65,000
|
|
|
47.4
|
%
|
|
61,629
|
|
|
48.1
|
%
|
Distillate
|
55,521
|
|
|
43.1
|
%
|
|
45,935
|
|
|
43.9
|
%
|
|
59,050
|
|
|
43.0
|
%
|
|
55,011
|
|
|
43.0
|
%
|
Other (excluding
internally produced fuel)
|
12,407
|
|
|
9.6
|
%
|
|
8,304
|
|
|
7.9
|
%
|
|
13,115
|
|
|
9.6
|
%
|
|
11,352
|
|
|
8.9
|
%
|
Total refining
production (excluding internally produced fuel)
|
128,777
|
|
|
100.0
|
%
|
|
104,636
|
|
|
100.0
|
%
|
|
137,165
|
|
|
100.0
|
%
|
|
127,992
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except operating statistics)
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
520.5
|
|
|
$
|
830.7
|
|
|
$
|
1,512.3
|
|
|
$
|
2,512.3
|
|
Cost of product
sold
|
393.1
|
|
|
742.3
|
|
|
1,164.5
|
|
|
2,221.0
|
|
Refining
margin*
|
127.4
|
|
|
88.4
|
|
|
347.8
|
|
|
291.3
|
|
Direct operating
expenses
|
42.9
|
|
|
43.0
|
|
|
117.0
|
|
|
128.4
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
12.5
|
|
|
10.2
|
|
|
37.6
|
|
|
30.3
|
|
Gross
profit*
|
$
|
72.0
|
|
|
$
|
35.2
|
|
|
$
|
193.2
|
|
|
$
|
132.6
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
141.8
|
|
|
$
|
101.1
|
|
|
$
|
361.0
|
|
|
$
|
294.0
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
17.01
|
|
|
$
|
12.03
|
|
|
$
|
16.18
|
|
|
$
|
13.44
|
|
FIFO impact
(favorable) unfavorable
|
1.93
|
|
|
1.73
|
|
|
0.61
|
|
|
0.13
|
|
Refining margin
adjusted for FIFO impact*
|
18.94
|
|
|
13.76
|
|
|
16.79
|
|
|
13.57
|
|
Gross
profit*
|
9.61
|
|
|
4.79
|
|
|
8.99
|
|
|
6.12
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
5.73
|
|
|
5.86
|
|
|
5.44
|
|
|
5.92
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
5.73
|
|
|
5.86
|
|
|
5.44
|
|
|
5.92
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
5.53
|
|
|
5.89
|
|
|
5.33
|
|
|
5.92
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
5.53
|
|
|
$
|
5.89
|
|
|
$
|
5.33
|
|
|
$
|
5.92
|
|
Barrels sold (barrels
per day)
|
84,351
|
|
|
79,426
|
|
|
80,332
|
|
|
79,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
79,914
|
|
|
94.6
|
%
|
|
78,232
|
|
|
96.1
|
%
|
|
78,225
|
|
|
96.0
|
%
|
|
78,327
|
|
|
96.5
|
%
|
Medium
|
1,485
|
|
|
1.8
|
%
|
|
1,610
|
|
|
2.0
|
%
|
|
488
|
|
|
0.6
|
%
|
|
1,065
|
|
|
1.3
|
%
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Total crude oil
throughput
|
81,399
|
|
|
96.4
|
%
|
|
79,842
|
|
|
98.1
|
%
|
|
78,713
|
|
|
96.6
|
%
|
|
79,392
|
|
|
97.8
|
%
|
All other feedstocks
and blendstocks
|
3,008
|
|
|
3.6
|
%
|
|
1,565
|
|
|
1.9
|
%
|
|
2,796
|
|
|
3.4
|
%
|
|
1,775
|
|
|
2.2
|
%
|
Total
throughput
|
84,407
|
|
|
100.0
|
%
|
|
81,407
|
|
|
100.0
|
%
|
|
81,509
|
|
|
100.0
|
%
|
|
81,167
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
42,630
|
|
|
51.5
|
%
|
|
38,236
|
|
|
48.1
|
%
|
|
41,650
|
|
|
52.1
|
%
|
|
39,001
|
|
|
49.1
|
%
|
Distillate
|
32,958
|
|
|
39.8
|
%
|
|
32,776
|
|
|
41.2
|
%
|
|
32,212
|
|
|
40.3
|
%
|
|
32,466
|
|
|
40.8
|
%
|
Other (excluding
internally produced fuel)
|
7,201
|
|
|
8.7
|
%
|
|
8,487
|
|
|
10.7
|
%
|
|
6,095
|
|
|
7.6
|
%
|
|
8,009
|
|
|
10.1
|
%
|
Total refining
production (excluding internally produced fuel)
|
82,789
|
|
|
100.0
|
%
|
|
79,499
|
|
|
100.0
|
%
|
|
79,957
|
|
|
100.0
|
%
|
|
79,476
|
|
|
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 the general partner. Reconciliations
of certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Nitrogen Fertilizer segment for the
quarter and nine months ended September 30,
2015 are included in CVR Partners' press release dated
October 29, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
49.3
|
|
|
$
|
66.7
|
|
|
$
|
223.2
|
|
|
$
|
224.3
|
|
Cost of product
sold
|
14.5
|
|
|
15.4
|
|
|
55.7
|
|
|
56.6
|
|
Direct operating
expenses
|
26.6
|
|
|
26.1
|
|
|
75.7
|
|
|
77.2
|
|
Major scheduled
turnaround expenses
|
6.6
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
Selling, general and
administrative expenses
|
6.0
|
|
|
4.0
|
|
|
15.2
|
|
|
13.9
|
|
Depreciation and
amortization
|
7.4
|
|
|
6.8
|
|
|
21.2
|
|
|
20.3
|
|
Operating income
(loss)
|
(11.8)
|
|
|
14.4
|
|
|
48.4
|
|
|
56.3
|
|
Interest expense and
other financing costs
|
(1.8)
|
|
|
(1.7)
|
|
|
(5.2)
|
|
|
(5.0)
|
|
Other income,
net
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Income (loss) before
income tax expense
|
(13.5)
|
|
|
12.7
|
|
|
43.3
|
|
|
51.3
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
(loss)
|
$
|
(13.5)
|
|
|
$
|
12.7
|
|
|
$
|
43.3
|
|
|
$
|
51.3
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
3.8
|
|
|
$
|
21.1
|
|
|
$
|
78.3
|
|
|
$
|
76.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
Production volume
(thousand tons):
|
|
|
|
|
|
|
|
Ammonia (gross
produced)(1)
|
66.3
|
|
|
99.8
|
|
|
269.4
|
|
|
283.0
|
|
Ammonia (net available
for sale)(1)(2)
|
12.1
|
|
|
11.8
|
|
|
31.2
|
|
|
23.9
|
|
UAN
|
152.4
|
|
|
223.5
|
|
|
658.1
|
|
|
704.1
|
|
|
|
|
|
|
|
|
|
Pet coke consumed
(thousand tons)
|
82.7
|
|
|
117.6
|
|
|
335.8
|
|
|
359.7
|
|
Pet coke consumed
(cost per ton)
|
$
|
25
|
|
|
$
|
29
|
|
|
$
|
26
|
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
|
|
|
Ammonia
|
7.8
|
|
|
6.2
|
|
|
26.9
|
|
|
14.5
|
|
UAN
|
174.5
|
|
|
220.3
|
|
|
698.8
|
|
|
714.2
|
|
|
|
|
|
|
|
|
|
Product pricing at
gate (dollars per ton)(3):
|
|
|
|
|
|
|
|
Ammonia
|
$
|
478
|
|
|
$
|
503
|
|
|
$
|
529
|
|
|
$
|
497
|
|
UAN
|
$
|
227
|
|
|
$
|
254
|
|
|
$
|
256
|
|
|
$
|
263
|
|
|
|
|
|
|
|
|
|
On-stream
factors(4):
|
|
|
|
|
|
|
|
Gasification
|
62.2
|
%
|
|
94.6
|
%
|
|
87.1
|
%
|
|
95.8
|
%
|
Ammonia
|
57.8
|
%
|
|
92.0
|
%
|
|
83.7
|
%
|
|
90.7
|
%
|
UAN
|
56.7
|
%
|
|
89.2
|
%
|
|
83.6
|
%
|
|
90.7
|
%
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
478
|
|
|
$
|
570
|
|
|
$
|
526
|
|
|
$
|
524
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
264
|
|
|
$
|
297
|
|
|
$
|
294
|
|
|
$
|
321
|
|
|
|
|
|
|
|
|
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 total ammonia produced, including ammonia
produced that was upgraded into UAN. 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 7,500 tons and 4,000 tons of ammonia during the three
months ended September 30, 2015 and 2014, respectively. The
Nitrogen Fertilizer segment acquired approximately 29,300 and
29,700 tons of ammonia during the nine months ended September 30,
2015 and 2014, respectively.
|
|
|
(3)
|
Product pricing at
gate per ton represents net sales less freight revenue divided by
product sales volume in tons and is shown in order to provide a
pricing measure that is comparable across the fertilizer
industry.
|
|
|
(4)
|
On-stream factor is
the total number of hours operated divided by the total number of
hours in the reporting period and is a measure of operating
efficiency.
|
|
|
|
Excluding the impact
of the full facility turnaround and the Linde air separation unit
outages, the on-stream factors would have been 100.0% for gasifier,
97.3% for ammonia and 96.2% for UAN for the three months ended
September 30, 2015.
|
|
|
|
Excluding the impact
of the full facility turnaround and the Linde air separation unit
outages, the on-stream factors would have been 99.8% for gasifier,
97.0% for ammonia and 96.9% for UAN for the nine months ended
September 30, 2015. Excluding the impact of the shutdown for
installation of the waste heat boiler, pressure swing adsorption
unit upgrade and the Linde air separation unit maintenance, the
on-stream factors for the nine months ended September 30, 2014
would have been 97.8% for gasifier, 93.0% for ammonia and 93.0% for
UAN.
|
Use of Non-GAAP Financial Measures
To supplement the Company's actual results in accordance with
GAAP for the applicable periods, the Company also uses the non-GAAP
financial measures noted above, 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 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.
Adjusted net income per diluted share represents adjusted net
income divided by weighted-average diluted shares outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except per share data)
|
Reconciliation of
Net Income to Adjusted Net Income:
|
|
|
|
|
|
|
|
Income before income
tax expense
|
$
|
122.0
|
|
|
$
|
25.5
|
|
|
$
|
480.9
|
|
|
$
|
497.8
|
|
Adjustments:
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
45.6
|
|
|
52.0
|
|
|
33.7
|
|
|
6.2
|
|
Share-based
compensation
|
3.2
|
|
|
2.0
|
|
|
9.1
|
|
|
10.8
|
|
Major scheduled
turnaround expenses
|
22.2
|
|
|
5.5
|
|
|
24.2
|
|
|
5.5
|
|
(Gain) loss on
derivatives, net
|
(11.8)
|
|
|
(25.7)
|
|
|
52.2
|
|
|
(171.1)
|
|
Current period
settlement on derivative contracts(1)
|
0.8
|
|
|
38.2
|
|
|
(34.0)
|
|
|
93.2
|
|
Flood insurance
recovery(2)
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Expenses associated
with the Rentech Nitrogen mergers(3)
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
Adjusted net income
before income tax expense and noncontrolling interest
|
183.5
|
|
|
97.5
|
|
|
540.3
|
|
|
442.4
|
|
Adjusted net income
attributed to noncontrolling interest
|
(62.0)
|
|
|
(37.3)
|
|
|
(179.5)
|
|
|
(145.6)
|
|
Income tax expense,
as adjusted
|
(39.1)
|
|
|
(23.2)
|
|
|
(121.4)
|
|
|
(102.8)
|
|
Adjusted net income
attributable to CVR Energy stockholders
|
$
|
82.4
|
|
|
$
|
37.0
|
|
|
$
|
239.4
|
|
|
$
|
194.0
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.95
|
|
|
$
|
0.43
|
|
|
$
|
2.76
|
|
|
$
|
2.23
|
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between the Petroleum segment's 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 the refineries'
performance as a general indication of the amount above their cost
of product sold at which they 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 Petroleum segment's Statements of
Operations. Our calculation of refining margin may differ from
similar calculations of other companies in the 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 the
Petroleum segment's 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
the Petroleum segment's net sales and cost of product sold
(exclusive of depreciation and amortization) adjusted for FIFO
impact. Refining margin adjusted for FIFO impact is a non-GAAP
measure that we believe is important to investors in evaluating the
refineries' performance as a general indication of the amount above
their cost of product sold (taking into account the impact of the
utilization of FIFO) at which they are able to sell refined
products. Our calculation of refining margin adjusted for FIFO
impact may differ from calculations of other companies in the
industry, thereby limiting its usefulness as a comparative measure.
Under the FIFO accounting method, 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 FIFO
impact when crude oil prices increase and an unfavorable FIFO
impact when crude oil prices decrease.
Gross profit (loss) is calculated as the difference between the
Petroleum segment's net sales, cost of product sold (exclusive of
depreciation and amortization), direct operating expenses
(exclusive of depreciation and amortization), major scheduled
turnaround expenses, flood insurance recovery and depreciation and
amortization. Gross profit (loss) per crude throughput barrel is
calculated as gross profit (loss) as derived above divided by the
refineries' crude oil throughput volumes for the respective periods
presented. Gross profit (loss) is a non-GAAP measure that should
not be substituted for operating income. Management believes it is
important to investors in evaluating the refineries' performance
and the Petroleum segment's ongoing operating results. Our
calculation of gross profit (loss) may differ from similar
calculations of other companies in the 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 (i)
FIFO impact (favorable) unfavorable; (ii) share-based compensation;
(iii) loss on extinguishment of debt; (iv) major scheduled
turnaround expenses; (v) (gain) loss on derivatives, net; (vi)
current period settlements on derivative contracts; (vii) flood
insurance recovery and (viii) expenses associated with the pending
Rentech Nitrogen mergers. 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 enable investors to better understand
and evaluate our ongoing operating results and allow for greater
transparency in reviewing our overall financial, operational and
economic performance. EBITDA and Adjusted EBITDA presented by other
companies may not be comparable to our presentation, since each
company may define these terms differently. Below is a
reconciliation of net income to EBITDA and EBITDA to Adjusted
EBITDA for the three and nine months ended September 30, 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Net income
attributable to CVR Energy stockholders
|
$
|
57.9
|
|
|
$
|
7.9
|
|
|
$
|
214.6
|
|
|
$
|
218.3
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
11.6
|
|
|
9.1
|
|
|
35.8
|
|
|
28.1
|
|
Income tax
expense
|
23.1
|
|
|
4.2
|
|
|
105.2
|
|
|
118.8
|
|
Depreciation and
amortization
|
38.7
|
|
|
37.8
|
|
|
123.2
|
|
|
113.7
|
|
EBITDA adjustments
included in noncontrolling interest
|
(18.0)
|
|
|
(16.7)
|
|
|
(56.6)
|
|
|
(46.8)
|
|
EBITDA
|
113.3
|
|
|
42.3
|
|
|
422.2
|
|
|
432.1
|
|
Add:
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
45.6
|
|
|
52.0
|
|
|
33.7
|
|
|
6.2
|
|
Share-based
compensation
|
3.2
|
|
|
2.0
|
|
|
9.1
|
|
|
10.8
|
|
Major scheduled
turnaround expenses
|
22.2
|
|
|
5.5
|
|
|
24.2
|
|
|
5.5
|
|
(Gain) loss on
derivatives, net
|
(11.8)
|
|
|
(25.7)
|
|
|
52.2
|
|
|
(171.1)
|
|
Current period
settlement on derivative contracts(1)
|
0.8
|
|
|
38.2
|
|
|
(34.0)
|
|
|
93.2
|
|
Flood insurance
recovery(2)
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Expenses associated
with the Rentech Nitrogen mergers(3)
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
Adjustments included
in noncontrolling interest
|
(21.0)
|
|
|
(23.8)
|
|
|
(18.4)
|
|
|
15.2
|
|
Adjusted
EBITDA
|
$
|
153.8
|
|
|
$
|
90.5
|
|
|
$
|
463.2
|
|
|
$
|
391.9
|
|
Petroleum and Nitrogen Fertilizer EBITDA and Adjusted EBITDA.
EBITDA by operating segment represents net income (loss) before (i)
interest expense and other financing costs, net of interest income,
(ii) income tax expense and (iii) depreciation and amortization.
Adjusted EBITDA by operating segment represents EBITDA by operating
segment adjusted for (i) FIFO impact (favorable) unfavorable; (ii)
share-based compensation, non-cash; (iii) loss on extinguishment of
debt; (iv) major scheduled turnaround expenses; (v) (gain) loss on
derivatives, net; (vi) current period settlements on derivative
contracts; (vii) flood insurance recovery and (viii) expenses
associated with the pending Rentech Nitrogen mergers. We present
Adjusted EBITDA by operating segment because it is the starting
point for CVR Refining's and CVR Partners' calculation of available
cash for distribution. EBITDA and Adjusted EBITDA by operating
segment are not recognized terms under GAAP and should not be
substituted for net income (loss) as a measure of performance.
Management believes that EBITDA and Adjusted EBITDA by operating
segment enable investors to better understand CVR Refining's and
CVR Partners' ability to make distributions to their common
unitholders, help investors evaluate our ongoing operating results
and allow for greater transparency in reviewing our overall
financial, operational and economic performance. EBITDA and
Adjusted EBITDA presented by other companies may not be comparable
to our presentation, since each company may define these terms
differently. Below is a reconciliation of net income (loss) to
EBITDA and EBITDA to Adjusted EBITDA for the Petroleum and Nitrogen
Fertilizer segments for the three and nine months ended
September 30, 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Petroleum:
|
|
|
|
|
|
|
|
Petroleum net
income
|
$
|
138.9
|
|
|
$
|
21.8
|
|
|
$
|
413.4
|
|
|
$
|
467.2
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
10.3
|
|
|
7.8
|
|
|
31.9
|
|
|
24.2
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
29.9
|
|
|
29.7
|
|
|
98.1
|
|
|
89.9
|
|
Petroleum
EBITDA
|
179.1
|
|
|
59.3
|
|
|
543.4
|
|
|
581.3
|
|
Add:
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
45.6
|
|
|
52.0
|
|
|
33.7
|
|
|
6.2
|
|
Share-based
compensation, non-cash
|
0.3
|
|
|
0.6
|
|
|
0.4
|
|
|
1.9
|
|
Major scheduled
turnaround expenses
|
15.6
|
|
|
5.5
|
|
|
17.2
|
|
|
5.5
|
|
(Gain) loss on
derivatives, net
|
(11.8)
|
|
|
(25.7)
|
|
|
52.2
|
|
|
(171.1)
|
|
Current period
settlements on derivative contracts(1)
|
0.8
|
|
|
38.2
|
|
|
(34.0)
|
|
|
93.2
|
|
Flood insurance
recovery(2)
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Adjusted Petroleum
EBITDA
|
$
|
229.6
|
|
|
$
|
129.9
|
|
|
$
|
585.6
|
|
|
$
|
517.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
Nitrogen Fertilizer
net income (loss)
|
$
|
(13.5)
|
|
|
$
|
12.7
|
|
|
$
|
43.3
|
|
|
$
|
51.3
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
1.8
|
|
|
1.7
|
|
|
5.2
|
|
|
5.0
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
7.4
|
|
|
6.8
|
|
|
21.2
|
|
|
20.3
|
|
Nitrogen
Fertilizer EBITDA
|
(4.3)
|
|
|
21.2
|
|
|
69.7
|
|
|
76.6
|
|
Add:
|
|
|
|
|
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
|
0.2
|
|
Major scheduled
turnaround expenses
|
6.6
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
Expenses associated
with the Rentech Nitrogen mergers(3)
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
3.8
|
|
|
$
|
21.1
|
|
|
$
|
78.3
|
|
|
$
|
76.8
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents the
portion of gain (loss) on derivatives, net related to contracts
that matured during the respective periods and settled with
counterparties. There are no premiums paid or received at inception
of the derivative contracts and upon settlement, there is no cost
recovery associated with these contracts.
|
|
|
(2)
|
Represents an
insurance recovery from CRRM's environmental insurance carriers as
a result of the flood and crude oil discharge at the Coffeyville
refinery on June/July 2007.
|
|
|
(3)
|
On August 9, 2015,
CVR Partners entered into an Agreement and Plan of Merger with
Rentech Nitrogen Partners, L.P. ("Rentech Nitrogen") and Rentech
Nitrogen GP, LLC ("Rentech Nitrogen GP") with Rentech Nitrogen and
Rentech Nitrogen GP continuing as surviving entities and
wholly-owned subsidiaries of CVR Partners. The Nitrogen Fertilizer
Partnership incurred legal and other professional fees and other
merger related expenses that are referred to herein as expenses
associated with the Rentech Nitrogen mergers, which are included in
selling, general and administrative expenses for the three and nine
months ended September 30, 2015.
|
Derivatives Summary. The Petroleum segment enters into
commodity swap contracts through crack spread swap agreements with
financial counterparties to fix the spread risk between the
refineries' crude oil purchases and the refined products the
refineries produce for sale. Through these swaps, the Petroleum
segment will sell a fixed differential for the value between the
selected refined product benchmark and the benchmark crude oil
price, thereby locking in a margin for a portion of the refineries'
production. The physical volumes are not exchanged and these
contracts are net settled with cash. From time to time, the
Petroleum segment holds various NYMEX positions through a
third-party clearing house.
The table below summarizes the Petroleum segment's open
commodity swap positions as of September 30,
2015. The positions are primarily in the form of crack
spread swap agreements with financial counterparties, wherein the
Petroleum segment has locked in differentials at the fixed prices
noted below. As of September 30,
2015, the open commodity swap positions for 2015 and 2016
were comprised of distillate crack swaps.
|
|
|
|
|
|
|
|
|
Commodity
Swaps
|
|
Barrels
|
|
|
Fixed
Price(1)
|
|
Fourth Quarter
2015
|
|
600,000
|
|
|
$
|
28.48
|
|
|
|
|
|
|
|
|
First Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
Second Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
Third Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
Fourth Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
|
|
|
|
|
|
|
Total
|
|
3,060,000
|
|
|
$
|
28.91
|
|
|
|
(1) Weighted-average
price of all positions for period indicated.
|
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SOURCE CVR Energy, Inc.