SUGAR LAND, Texas, March 12, 2013 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today reported record full year 2012 net income of
$378.6 million, or $4.33 per fully diluted share, on net sales of
$8,567.3 million. Fourth
quarter 2012 net income was $40.2
million, or 46 cents per fully
diluted share, on net sales of $1,880.8
million.
(Logo: http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
The 2012 results compare to net income for the full year 2011 of
$345.8 million, or $3.94 per fully diluted share, on net sales of
$5,029.1 million, and fourth quarter
2011 net income of $65.9 million, or
75 cents per fully diluted share, on
net sales of $1,062.2 million.
Fourth quarter 2012 adjusted net income, a non-GAAP financial
measure, was $103.8 million, or
$1.20 per diluted share, compared to
$29.5 million, or 34 cents per diluted share, for the fourth
quarter of 2011. Major items impacting the 2012 fourth quarter
adjusted net income, all net of taxes, were shared-based
compensation of $6.2 million, an
unfavorable impact from first-in, first-out (FIFO) accounting of
$7.9 million, an unrealized gain on
derivatives of $29.8 million, a loss
on extinguishment of debt of $22.8
million, and a major scheduled turnaround expense of
$56.1 million.
Operating income for the fourth quarter 2012 was $124.9 million, up from $26.9 million in the same quarter of 2011. Full
year 2012 operating income was $1,034.9
million, up from $566.6
million for the full year 2011.
"CVR Energy's exceptional financial results in 2012 were driven
by strong operating performance and attractive market conditions
throughout the year. These results were achieved despite the
expense and lost production from our planned major turnarounds at
the refinery in Wynnewood and
fertilizer plant in Coffeyville,
along with a partial turnaround at the Coffeyville refinery," said Jack Lipinski, CVR Energy's chief executive
officer. "Our fertilizer segment also had a solid year with CVR
Partners generating 2012 full year distributions of $1.81 per common unit.
"In addition to posting record results in 2012, we achieved
another significant milestone by taking our petroleum businesses
public earlier this year in the largest IPO of a master limited
partnership to date," he said. "CVR Refining, LP began trading on
the New York Stock Exchange on Jan.
17 under the ticker CVRR. CVR Energy, through a
subsidiary, retains 81.3 percent of CVR Refining's common
units.
"This latest IPO effectively makes CVR Energy a diversified
holding company owning the General Partners of both CVR Partners
and CVR Refining along with the majority of LP units in each
company," Lipinski said.
Petroleum Business
The petroleum business, which includes the Coffeyville and Wynnewood refineries, reported fourth quarter
2012 operating income of $121.3
million, and adjusted EBITDA, a non-GAAP financial measure,
of $198.2 million, on net sales of
$1,816.2 million, compared to an
operating loss in the same quarter a year earlier of $3.3 million, and adjusted EBITDA of $47.6 million, on net sales of $979.5 million.
Fourth quarter 2012 throughput of crude oil and all other
feedstocks and blendstocks, which was impacted by a major scheduled
turnaround at the Wynnewood
refinery, averaged 162,603 barrels per day (bpd), compared to
97,630 bpd for the same period in 2011. Crude oil throughput for
the fourth quarter 2012 averaged 147,815 bpd per day, compared with
93,705 bpd for the same period in 2011. The year-over-year increase
in throughput was mostly driven by the addition of the Wynnewood refinery.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $25.93 in the fourth quarter 2012 compared to
$11.05 during the same period in
2011. Gross profit per crude oil throughput barrel was $10.23 in the fourth quarter 2012, as compared to
90 cents during the same period in
2011.
Direct operating expenses, including major scheduled turnaround
expenses, per barrel sold, exclusive of depreciation and
amortization, for the fourth quarter 2012 was $11.29, down from $12.53 in the fourth quarter 2011.
Coffeyville Refinery
The Coffeyville refinery
reported fourth quarter 2012 gross profit of $238.4 million, compared to $9.4 million of gross profit for the fourth
quarter of 2011. Fourth quarter 2012 crude oil throughput averaged
124,570 bpd, compared to 81,474 bpd in the fourth quarter of 2011.
Refining margin adjusted for FIFO impact per crude oil throughput
barrel for the fourth quarter of 2012 was $28.08, compared to $12.19 for the same period in 2011. Gross profit
per crude oil throughput barrel was $20.80 in the fourth quarter of 2012, compared to
$1.26 for the 2011 fourth quarter.
Direct operating expenses, including major scheduled turnaround
expenses, per barrel sold for the 2012 fourth quarter was
$4.20, compared to $13.84 for the 2011 fourth quarter. Fourth
quarter 2011 results for the Coffeyville refinery were negatively impacted
by a major scheduled turnaround.
Wynnewood Refinery
CVR Energy acquired the Wynnewood refinery in December 2011. The 2012 fourth quarter represents
the refinery's fourth full quarter as a CVR Energy
subsidiary. Fourth quarter 2012 results for the Wynnewood refinery were negatively impacted by
a major scheduled turnaround.
The refinery had a fourth quarter 2012 gross loss of
$97.9 million. Fourth quarter of 2012
crude oil throughput averaged 23,245 bpd. Refining margin adjusted
for FIFO impact per crude oil throughput barrel for the fourth
quarter of 2012 was $14.67. Direct
operating expenses, including major scheduled turnaround expenses,
per barrel sold for the fourth quarter was $49.90.
Nitrogen Fertilizers Business
The fertilizer business operated by CVR Partners, LP reported
fourth quarter 2012 operating income of $16.0 million, and adjusted EBITDA, a non-GAAP
financial measure, of $27.1 million,
on net sales of $67.6 million,
compared to operating income of $42.6
million, and adjusted EBITDA of $48.4
million, on net sales of $87.6
million for the 2011 fourth quarter. Impacting 2012
fourth quarter results was a biennial turnaround at the company's
nitrogen fertilizer plant in Coffeyville,
Kan.
CVR Partners produced 87,700 tons of ammonia during the fourth
quarter of 2012, of which 35,300 net tons were available for sale
while the rest was upgraded to 127,300 tons of more highly valued
UAN. In the 2011 fourth quarter, the plant produced 100,800 tons of
ammonia with 27,500 net tons available for sale with the remainder
upgraded to 178,300 tons of UAN.
For the fourth quarter 2012, average realized plant gate prices
for ammonia and UAN were $676 per ton
and $274 per ton, respectively,
compared to $606 per ton and
$334 per ton, respectively, for the
equivalent period in 2011.
Cash Dividends
On Jan. 24, 2013, the CVR Energy
Board of Directors adopted a quarterly cash dividend policy. The
company's initial quarterly dividend is expected to be 75 cents per share, or $3.00 per share on an annualized basis, which the
company plans to begin paying in the 2013 second quarter. Also on
Jan. 24, 2013, the company declared a
special dividend of $5.50 per share,
which was paid on Feb. 19, 2013, to
shareholders of record on Feb. 5,
2013.
CVR Energy Fourth Quarter and Full Year 2012 Earnings
Conference Call Information
CVR Energy previously announced that it will host its fourth
quarter and full year 2012 Earnings Conference Call for analysts
and investors on Tuesday, March 12,
at 2 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the
Internet at http://www.videonewswire.com/event.asp?id=91583. 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=91583. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 407365.
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 other than the Statement of Operations and cash flow data
for the year ended December 31, 2011 and balance sheet data as of
December 31, 2011).
|
|
Three
Months Ended
December 31,
|
Change
from 2011
|
|
|
2012
|
2011
|
Change
|
Percent
|
|
|
(in
millions, except per share data)
|
|
Consolidated Statement of Operations
Data:
|
|
|
|
|
|
Net
sales
|
$
1,880.8
|
$
1,062.2
|
$
818.6
|
77.1%
|
|
Cost of
product sold
|
1,485.1
|
857.3
|
627.8
|
73.2
|
|
Direct
operating expenses
|
202.5
|
124.8
|
77.7
|
62.3
|
|
Insurance
recovery — business interruption
|
—
|
—
|
—
|
—
|
|
Selling,
general and administrative expenses
|
35.7
|
29.0
|
6.7
|
23.1
|
|
Depreciation and amortization
|
32.6
|
24.2
|
8.4
|
34.7
|
|
Operating income
|
124.9
|
26.9
|
98.0
|
364.3
|
|
Interest
expense and other financing costs
|
(18.2)
|
(14.7)
|
(3.5)
|
23.8
|
|
Gain
(loss) on derivatives, net
|
|
|
|
|
|
Realized
|
(57.1)
|
11.1
|
(68.2)
|
(614.4)
|
|
Unrealized
|
48.9
|
92.1
|
(43.2)
|
(46.9)
|
|
Loss on
extinguishment of debt
|
(37.5)
|
—
|
(37.5)
|
—
|
|
Other
income, net
|
0.5
|
—
|
0.5
|
—
|
|
Income before income tax expense
|
61.5
|
115.4
|
(53.9)
|
(46.7)
|
|
Income tax
expense
|
16.7
|
37.1
|
(20.4)
|
(55.0)
|
|
Net income
|
44.8
|
78.3
|
(33.5)
|
(42.8)
|
|
Net income attributable to noncontrolling
interest
|
4.6
|
12.4
|
(7.8)
|
(62.9)
|
|
Net income attributable to CVR Energy
stockholders
|
$ 40.2
|
$ 65.9
|
$ (25.7)
|
(39.0)%
|
|
_______________
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
$
0.46
|
$
0.76
|
$
(0.30)
|
(39.5)%
|
|
Diluted
earnings per share
|
$
0.46
|
$
0.75
|
$
(0.29)
|
(38.7)%
|
|
|
|
|
|
|
|
Adjusted
net income*
|
$
103.8
|
$
29.5
|
$
74.3
|
251.8%
|
|
Adjusted
net income, per diluted share*
|
$
1.20
|
$
0.34
|
$
0.86
|
252.9%
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:
|
|
|
|
|
|
Basic
|
86,831,050
|
86,582,800
|
248,250
|
0.3%
|
|
Diluted
|
86,831,050
|
87,746,843
|
(915,793)
|
(1.0)%
|
|
|
|
|
|
|
|
|
|
Year
Ended
December 31,
|
Change
from 2011
|
|
|
2012
|
2011
|
Change
|
Percent
|
|
|
(in
millions, except per share data)
|
|
Consolidated Statement of Operations
Data:
|
|
|
|
|
|
Net
sales
|
$
8,567.3
|
$
5,029.1
|
$
3,538.2
|
70.4%
|
|
Cost of
product sold
|
6,696.9
|
3,943.5
|
2,753.4
|
69.8
|
|
Direct
operating expenses
|
522.1
|
334.1
|
188.0
|
56.3
|
|
Insurance
recovery — business interruption
|
—
|
(3.4)
|
3.4
|
(100.0)
|
|
Selling,
general and administrative expenses
|
183.4
|
98.0
|
85.4
|
87.1
|
|
Depreciation and amortization
|
130.0
|
90.3
|
39.7
|
44.0
|
|
Operating income
|
1,034.9
|
566.6
|
468.3
|
82.7
|
|
Interest
expense and other financing costs
|
(75.4)
|
(55.8)
|
(19.6)
|
35.1
|
|
Gain
(loss) on derivatives, net
|
|
|
|
|
|
Realized
|
(137.6)
|
(7.2)
|
(130.4)
|
1,811.1
|
|
Unrealized
|
(148.0)
|
85.3
|
(233.3)
|
(273.5)
|
|
Loss on
extinguishment of debt
|
(37.5)
|
(2.1)
|
(35.4)
|
1,685.7
|
|
Other
income, net
|
1.8
|
1.3
|
0.5
|
38.5
|
|
Income before income tax expense
|
638.2
|
588.1
|
50.1
|
8.5
|
|
Income tax
expense
|
225.6
|
209.5
|
16.1
|
7.7
|
|
Net income
|
412.6
|
378.6
|
34.0
|
9.0
|
|
Net income attributable to noncontrolling
interest
|
34.0
|
32.8
|
1.2
|
3.7
|
|
Net income attributable to CVR Energy
stockholders
|
$ 378.6
|
$ 345.8
|
$ 32.8
|
9.5%
|
|
_____________
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
$
4.36
|
$
4.00
|
$
0.36
|
9.0%
|
|
Diluted
earnings per share
|
$
4.33
|
$
3.94
|
$
0.39
|
9.9%
|
|
|
|
|
|
|
|
Adjusted
net income*
|
$
660.1
|
$
345.7
|
$
314.4
|
90.9%
|
|
Adjusted
net income, per diluted share*
|
$
7.55
|
$
3.94
|
$
3.61
|
91.6%
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:
|
|
|
|
|
|
Basic
|
86,822,913
|
86,493,735
|
329,178
|
0.4%
|
|
Diluted
|
87,392,270
|
87,766,573
|
(374,303)
|
(0.4)%
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
|
|
(in
millions)
|
|
|
Balance
Sheet Data:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
896.0
|
|
$
388.3
|
|
|
Working
capital
|
1,135.4
|
|
769.2
|
|
|
Total
assets
|
3,610.9
|
|
3,119.3
|
|
|
Total
debt, including current portion
|
898.2
|
|
863.8
|
|
|
Total CVR
stockholders' equity
|
1,525.2
|
|
1,151.6
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
(in
millions)
|
|
|
Cash
Flow Data:
|
|
|
|
|
|
Net cash
flow provided by (used in):
|
|
|
|
|
|
Operating
activities
|
$
(21.2)
|
$
(67.4)
|
$
762.6
|
$
278.6
|
|
Investing
activities
|
(67.1)
|
(630.5)
|
(210.7)
|
(674.4)
|
|
Financing
activities
|
(4.0)
|
187.8
|
(44.3)
|
584.1
|
|
Net cash
flow
|
$ (92.3)
|
$ (510.1)
|
$ 507.6
|
$ 188.3
|
|
|
|
|
|
|
|
Other
Financial Data:
|
|
|
|
|
|
Capital
expenditures for property, plant and equipment
|
$
67.1
|
$
44.6
|
$
212.2
|
$
91.2
|
|
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.
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 December 31, 2012 are included in CVR Partners'
press release dated February 27,
2013.
The Petroleum segment, as reported herein, 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 will be the same as CVR Refining's financial
statements.
|
Petroleum
|
Nitrogen Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
Three
months ended December 31, 2012
|
|
|
|
|
Net
sales
|
$
1,816.2
|
$
67.6
|
$
(3.0)
|
$
1,880.8
|
Cost of
product sold
|
1,476.5
|
11.5
|
(2.9)
|
1,485.1
|
Direct
operating expenses (1)
|
84.2
|
24.6
|
—
|
108.8
|
Major
scheduled turnaround expense
|
89.1
|
4.6
|
—
|
93.7
|
Selling,
general & administrative
|
17.8
|
6.0
|
11.9
|
35.7
|
Depreciation and amortization
|
27.3
|
4.9
|
0.4
|
32.6
|
Operating income (loss)
|
$
121.3
|
$
16.0
|
$
(12.4)
|
$
124.9
|
|
|
|
|
|
Capital
expenditures
|
$
37.4
|
$
24.7
|
$
5.0
|
$
67.1
|
|
|
|
|
|
Year
ended December 31, 2012
|
|
|
|
|
Net
sales
|
$
8,281.5
|
$
302.3
|
$
(16.5)
|
$
8,567.3
|
Cost of
product sold
|
6,667.3
|
46.1
|
(16.5)
|
6,696.9
|
Direct
operating expenses (1)
|
302.8
|
90.8
|
—
|
393.6
|
Major
scheduled turnaround expense
|
123.7
|
4.8
|
—
|
128.5
|
Selling,
general & administrative
|
67.6
|
24.1
|
91.7
|
183.4
|
Depreciation and amortization
|
107.6
|
20.7
|
1.7
|
130.0
|
Operating income (loss)
|
$ 1,012.5
|
$
115.8
|
$
(93.4)
|
$ 1,034.9
|
|
|
|
|
|
Capital
expenditures
|
$
120.0
|
$
82.2
|
$
10.0
|
$
212.2
|
|
|
|
|
|
|
Petroleum
|
Nitrogen Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
Three
months ended December 31, 2011
|
|
|
|
|
Net
sales
|
$
979.5
|
$
87.6
|
$
(4.9)
|
$
1,062.2
|
Cost of
product sold
|
849.1
|
14.4
|
(6.2)
|
857.3
|
Direct
operating expenses (1)
|
49.6
|
21.1
|
—
|
70.7
|
Major
scheduled turnaround expense
|
54.1
|
—
|
—
|
54.1
|
Insurance
recovery – business interruption
|
—
|
—
|
—
|
—
|
Selling,
general & administrative
|
11.0
|
4.6
|
13.4
|
29.0
|
Depreciation and amortization
|
19.0
|
4.9
|
0.3
|
24.2
|
Operating income (loss)
|
$
(3.3)
|
$
42.6
|
$
(12.4)
|
$
26.9
|
|
|
|
|
|
Capital
expenditures
|
$
35.2
|
$
8.6
|
$
0.8
|
$
44.6
|
|
|
|
|
|
Year
ended December 31, 2011
|
|
|
|
|
Net
sales
|
$
4,751.8
|
$
302.9
|
$
(25.6)
|
$
5,029.1
|
Cost of
product sold
|
3,926.6
|
42.5
|
(25.6)
|
3,943.5
|
Direct
operating expenses (1)
|
181.3
|
86.5
|
(0.1)
|
267.7
|
Major
scheduled turnaround expense
|
66.4
|
—
|
—
|
66.4
|
Insurance
recovery – business interruption
|
—
|
(3.4)
|
—
|
(3.4)
|
Selling,
general & administrative
|
41.9
|
22.2
|
33.9
|
98.0
|
Depreciation and amortization
|
69.9
|
18.9
|
1.5
|
90.3
|
Operating income (loss)
|
$
465.7
|
$
136.2
|
$
(35.3)
|
$
566.6
|
|
|
|
|
|
Capital
expenditures
|
$
68.6
|
$
19.1
|
$
3.5
|
$
91.2
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
Petroleum
|
Nitrogen Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
December 31, 2012
|
|
|
|
|
Cash and
cash equivalents
|
$
148.1
|
$
127.8
|
$
620.1
|
$
896.0
|
Total
assets
|
2,258.5
|
623.0
|
729.4
|
3,610.9
|
Total
debt, including current portion
|
552.3
|
125.0
|
220.9
|
898.2
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011
|
|
|
|
|
Cash and
cash equivalents (2)
|
$
—
|
$
237.0
|
$
151.3
|
$
388.3
|
Total
assets
|
2,322.1
|
659.3
|
137.9
|
3,119.3
|
Total
debt, including current portion
|
—
|
125.0
|
738.8
|
863.8
|
|
|
(2)
|
Prior to
December 2012, the Petroleum segment was part of a centralized
approach to cash management. Accordingly, Corporate and Other is
inclusive of the Petroleum segment's cash and cash equivalents and
long-term debt as of December 31, 2011.
|
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.
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
(in
millions, except operating statistics)
|
|
Petroleum Segment Summary Financial
Results:
|
|
|
|
|
|
Net
sales
|
$
1,816.2
|
$
979.5
|
$
8,281.5
|
$
4,751.8
|
|
Cost of
product sold
|
1,476.5
|
849.1
|
6,667.3
|
3,926.6
|
|
Refining margin*
|
339.7
|
130.4
|
1,614.2
|
825.2
|
|
Direct
operating expenses
|
84.2
|
49.6
|
302.8
|
181.3
|
|
Major
scheduled turnaround expense
|
89.1
|
54.1
|
123.7
|
66.4
|
|
Depreciation and amortization
|
27.3
|
19.0
|
107.6
|
69.9
|
|
Gross profit
|
139.1
|
7.7
|
1,080.1
|
507.6
|
|
Selling,
general and administrative expenses
|
17.8
|
11.0
|
67.6
|
41.9
|
|
Operating income
|
$ 121.3
|
$
(3.3)
|
$ 1,012.5
|
$ 465.7
|
|
|
|
|
|
|
|
Refining
margin adjusted for FIFO impact*
|
$
352.6
|
$
95.3
|
$
1,672.6
|
$
799.6
|
|
|
|
|
|
|
|
Adjusted
Petroleum EBITDA*
|
$
198.2
|
$
47.6
|
$
1,178.9
|
$
580.9
|
|
|
|
|
|
|
|
Petroleum Segment Key Operating
Statistics:
|
|
|
|
|
|
Per crude
oil throughput barrel:
|
|
|
|
|
|
Refining margin*
|
$
24.98
|
$
15.13
|
$
26.04
|
$
21.80
|
|
FIFO impact (favorable) unfavorable
|
0.95
|
(4.08)
|
0.94
|
(0.68)
|
|
Refining margin adjusted for FIFO impact*
|
25.93
|
11.05
|
26.98
|
21.12
|
|
Gross profit
|
10.23
|
0.90
|
17.42
|
13.41
|
|
Direct operating expenses and major scheduled
turnaround expenses
|
12.75
|
12.03
|
6.88
|
6.54
|
|
Direct
operating expenses and major scheduled turnaround expenses per
barrel sold
|
$
11.29
|
$
12.53
|
$
6.26
|
$
6.38
|
|
Barrels
sold (barrels per day)
|
166,842
|
89,953
|
186,035
|
106,397
|
|
|
|
|
|
|
|
|
|
Three
Months Ended December 31,
|
Year
Ended December 31,
|
|
|
2012
|
2011
|
2012
|
2011
|
|
Petroleum Segment Summary Refining Throughput and
Production Data:
|
|
|
|
|
|
(barrels per day)
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
Sweet
|
112,113
|
68.9%
|
78,006
|
79.9%
|
130,414
|
72.4%
|
83,538
|
76.7%
|
|
Light/medium sour
|
20,508
|
12.6%
|
4,986
|
5.1%
|
21,334
|
11.8%
|
1,704
|
1.6%
|
|
Heavy sour
|
15,194
|
9.3%
|
10,713
|
11.0%
|
17,608
|
9.8%
|
18,460
|
16.9%
|
|
Total crude oil throughput
|
147,815
|
90.8%
|
93,705
|
96.0%
|
169,356
|
94.0%
|
103,702
|
95.2%
|
|
All other feedstocks and blendstocks
|
14,788
|
9.2%
|
3,925
|
4.0%
|
10,791
|
6.0%
|
5,231
|
4.8%
|
|
Total throughput
|
162,603
|
100.0%
|
97,630
|
100.0%
|
180,147
|
100.0%
|
108,933
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
|
Gasoline
|
82,855
|
50.6%
|
41,032
|
42.1%
|
89,787
|
49.9%
|
48,486
|
44.3%
|
|
Distillate
|
64,577
|
39.5%
|
40,095
|
41.1%
|
72,804
|
40.6%
|
45,535
|
41.6%
|
|
Other (excluding internally produced fuel)
|
16,284
|
9.9%
|
16,410
|
16.8%
|
17,262
|
9.5%
|
15,385
|
14.1%
|
|
Total refining production (excluding internally
produced fuel)
|
163,716
|
100.0%
|
97,537
|
100.0%
|
179,853
|
100.0%
|
109,406
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
Product
price (dollars per gallon):
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
2.62
|
|
$
2.56
|
|
$
2.86
|
|
$
2.82
|
|
|
Distillate
|
3.13
|
|
2.98
|
|
3.08
|
|
3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
2012
|
2011
|
2012
|
2011
|
Market
Indicators (dollars per barrel):
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
88.23
|
$
94.06
|
$
94.15
|
$
95.11
|
Crude Oil
Differentials:
|
|
|
|
|
WTI less WTS (light/medium sour)
|
9.29
|
0.84
|
5.40
|
2.06
|
WTI less WCS (heavy sour)
|
27.07
|
12.38
|
22.53
|
16.54
|
NYMEX
Crack Spreads:
|
|
|
|
|
Gasoline
|
26.63
|
16.03
|
28.55
|
23.54
|
Heating Oil
|
40.00
|
30.96
|
32.94
|
29.12
|
NYMEX 2-1-1 Crack Spread
|
33.32
|
23.49
|
30.75
|
26.33
|
PADD II
Group 3 Basis:
|
|
|
|
|
Gasoline
|
(4.82)
|
(0.87)
|
(3.11)
|
(1.09)
|
Ultra Low Sulfur Diesel
|
2.57
|
0.95
|
2.17
|
1.98
|
PADD II
Group 3 Product Crack:
|
|
|
|
|
Gasoline
|
21.82
|
15.16
|
25.45
|
22.44
|
Ultra Low Sulfur Diesel
|
42.57
|
31.91
|
35.11
|
31.10
|
PADD II
Group 3 2-1-1
|
32.19
|
23.54
|
30.28
|
26.77
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
(in
millions, except operating statistics)
|
|
Coffeyville Refinery Financial
Results:
|
|
|
|
|
|
Net
sales
|
$
1,548.6
|
$
871.8
|
$
5,632.9
|
$
4,643.9
|
|
Cost of
product sold
|
1,238.3
|
745.8
|
4,506.5
|
3,823.5
|
|
Refining margin*
|
310.3
|
126.0
|
1,126.4
|
820.4
|
|
Direct
operating expenses
|
54.4
|
45.5
|
189.1
|
177.1
|
|
Major
scheduled turnaround expense
|
—
|
54.1
|
21.2
|
66.4
|
|
Depreciation and amortization
|
17.5
|
17.0
|
69.6
|
66.0
|
|
Gross profit
|
$ 238.4
|
$ 9.4
|
$ 846.5
|
$ 510.9
|
|
|
|
|
|
|
|
Refining
margin adjusted for FIFO impact*
|
$
321.9
|
$
91.5
|
$
1,164.5
|
$
795.4
|
|
|
|
|
|
|
|
Coffeyville Refinery Key Operating
Statistics:
|
|
|
|
|
|
Per crude
oil throughput barrel:
|
|
|
|
|
|
Refining margin*
|
$
27.07
|
$
16.80
|
$
26.81
|
$
22.34
|
|
FIFO impact (favorable) unfavorable
|
1.01
|
(4.61)
|
0.91
|
(0.68)
|
|
Refining margin adjusted for FIFO impact*
|
28.08
|
12.19
|
27.72
|
21.66
|
|
Gross profit
|
20.80
|
1.26
|
20.15
|
13.91
|
|
Direct operating expenses and major scheduled
turnaround expense
|
4.75
|
13.28
|
5.01
|
6.63
|
|
Direct
operating expenses and major scheduled turnaround expense per
barrel sold
|
$
4.20
|
$
13.84
|
$
4.52
|
$
6.45
|
|
Barrels
sold (barrels per day)
|
140,943
|
78,180
|
127,122
|
103,430
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
2012
|
2011
|
2012
|
2011
|
Coffeyville Refinery Throughput and Production
Data:
|
|
|
|
|
|
|
|
|
(barrels per day)
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
Sweet
|
93,692
|
67.5%
|
67,286
|
80.0%
|
91,580
|
74.3%
|
80,835
|
76.5%
|
Light/medium sour
|
15,684
|
11.3%
|
3,475
|
4.1%
|
5,601
|
4.6%
|
1,323
|
1.3%
|
Heavy sour
|
15,194
|
10.9%
|
10,713
|
12.7%
|
17,608
|
14.3%
|
18,460
|
17.5%
|
Total crude oil throughput
|
124,570
|
89.7%
|
81,474
|
96.8%
|
114,789
|
93.2%
|
100,618
|
95.3%
|
All other feedstocks and blendstocks
|
14,259
|
10.3%
|
2,694
|
3.2%
|
8,412
|
6.8%
|
4,921
|
4.7%
|
Total throughput
|
138,829
|
100.0%
|
84,168
|
100.0%
|
123,201
|
100.0%
|
105,539
|
100.0%
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
|
|
|
Gasoline
|
71,259
|
50.5%
|
33,975
|
40.2%
|
61,998
|
49.6%
|
46,707
|
44.0%
|
|
Distillate
|
57,382
|
40.7%
|
35,646
|
42.2%
|
52,429
|
41.9%
|
44,414
|
41.9%
|
|
Other
(excluding internally produced
fuel)
|
12,457
|
8.8%
|
14,885
|
17.6%
|
10,629
|
8.5%
|
15,000
|
14.1%
|
Total refining production (excluding
internally produced fuel)
|
141,098
|
100.0%
|
84,506
|
100.0%
|
125,056
|
100.0%
|
106,121
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
December 31, 2012
|
Year
Ended
December 31, 2012
|
|
(in
millions, except operating statistics)
|
Wynnewood Refinery Financial
Results:
|
|
|
Net
sales
|
$
266.5
|
$
2,647.1
|
Cost of
product sold
|
236.4
|
2,160.9
|
Refining margin*
|
30.1
|
486.2
|
Direct
operating expenses
|
30.1
|
113.7
|
Major
scheduled turnaround expense
|
89.1
|
102.5
|
Depreciation and amortization
|
8.8
|
34.5
|
Gross profit (loss)
|
$
(97.9)
|
$
235.5
|
|
|
|
Refining
margin adjusted for FIFO impact*
|
$
31.5
|
$
506.5
|
|
|
|
|
|
|
Wynnewood Refinery Key Operating
Statistics:
|
|
|
Per crude
oil throughput barrel:
|
|
|
Refining margin*
|
$
14.04
|
$
24.34
|
FIFO impact (favorable) unfavorable
|
0.63
|
1.01
|
Refining margin adjusted for FIFO impact*
|
14.67
|
25.35
|
Gross profit
|
(45.81)
|
11.79
|
Direct operating expenses and major scheduled
turnaround expense
|
55.76
|
10.83
|
Direct
operating expenses and major scheduled turnaround expense per
barrel sold
|
$
49.90
|
$
9.76
|
Barrels
sold (barrels per day)
|
25,974
|
60,496
|
|
Three
Months Ended
December 31, 2012
|
Year
Ended
December 31, 2012
|
Wynnewood Refinery Throughput and Production
Data:
|
|
|
|
|
(barrels per day)
|
|
|
|
|
Throughput:
|
|
|
|
|
Sweet
|
18,421
|
77.5%
|
38,834
|
68.2%
|
Light/medium sour
|
4,824
|
20.3%
|
15,733
|
27.6%
|
Heavy sour
|
—
|
—
%
|
—
|
—
%
|
Total crude oil throughput
|
23,245
|
97.8%
|
54,567
|
95.8%
|
All other
feedstocks and blendstocks
|
529
|
2.2%
|
2,379
|
4.2%
|
Total throughput
|
23,774
|
100.0%
|
56,946
|
100.0%
|
|
|
|
|
|
Production:
|
|
|
|
|
Gasoline
|
11,596
|
51.3%
|
27,789
|
50.6%
|
Distillate
|
7,195
|
31.8%
|
20,375
|
37.2%
|
Other (excluding internally produced fuel)
|
3,827
|
16.9%
|
6,633
|
12.2%
|
Total refining production (excluding internally
produced fuel)
|
22,618
|
100.0%
|
54,797
|
100.0%
|
|
|
|
|
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners. 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 December 31, 2012 are
included in CVR Partners' press release dated February 27, 2013.
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
|
(in
millions, except as noted)
|
|
Nitrogen Fertilizer Segment Financial
Results:
|
|
|
|
|
|
Net
sales
|
$
67.6
|
$
87.6
|
$
302.3
|
$
302.9
|
|
Cost of
product sold
|
11.5
|
14.4
|
46.1
|
42.5
|
|
Direct
operating expenses
|
24.6
|
21.1
|
90.8
|
86.5
|
|
Major
scheduled turnaround expense
|
4.6
|
—
|
4.8
|
—
|
|
Insurance
recovery — business interruption
|
—
|
—
|
—
|
(3.4)
|
|
Selling,
general and administrative expenses
|
6.0
|
4.6
|
24.1
|
22.2
|
|
Depreciation and amortization
|
4.9
|
4.9
|
20.7
|
18.9
|
|
|
|
|
|
|
|
Operating income
|
$ 16.0
|
$ 42.6
|
$ 115.8
|
$ 136.2
|
|
|
|
|
|
|
|
Adjusted
Nitrogen Fertilizer EBITDA*
|
$
27.1
|
$
48.4
|
$
148.2
|
$
162.6
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
(in
millions, except as noted)
|
|
Nitrogen Fertilizer Segment Key Operating
Statistics:
|
|
|
|
|
|
Production
(thousand tons):
|
|
|
|
|
|
Ammonia (gross produced) (1)
|
87.7
|
100.8
|
390.0
|
411.2
|
|
Ammonia (net available for sale) (1)
|
35.3
|
27.5
|
124.6
|
116.8
|
|
UAN
|
127.3
|
178.3
|
643.8
|
714.1
|
|
|
|
|
|
|
|
Petroleum
coke consumed (thousand tons)
|
109.7
|
126.3
|
487.3
|
517.3
|
|
Petroleum
coke (cost per ton)
|
$
30
|
$
42
|
$
33
|
$
33
|
|
|
|
|
|
|
|
Sales
(thousand tons):
|
|
|
|
|
|
Ammonia
|
38.4
|
29.3
|
127.8
|
112.8
|
|
UAN
|
133.0
|
184.6
|
643.5
|
709.3
|
|
|
|
|
|
|
|
Product
pricing (plant gate) (dollars per ton) (2):
|
|
|
|
|
|
Ammonia
|
$
676
|
$
606
|
$
613
|
$
579
|
|
UAN
|
$
274
|
$
334
|
$
303
|
$
284
|
|
|
|
|
|
|
|
On-stream
factors (3):
|
|
|
|
|
|
Gasification
|
79.0%
|
97.6%
|
92.6%
|
99.0%
|
|
Ammonia
|
76.6%
|
97.1%
|
91.1%
|
97.7%
|
|
UAN
|
68.6%
|
94.1%
|
86.4%
|
95.5%
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
Ammonia —
Southern Plains (dollars per ton)
|
$
748
|
$
651
|
$
647
|
$
619
|
|
UAN — Mid
Cornbelt (dollars per ton)
|
$
361
|
$
400
|
$
369
|
$
379
|
|
_______________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. The net tons
available for sale represent the ammonia available for sale that
was not upgraded into UAN.
|
|
|
(2)
|
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.
|
|
|
(3)
|
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 Linde
air separation unit outage and the major scheduled turnaround, the
on-stream factors for the three months ended December 31, 2012
would have been 99.7% for gasifier, 98.8% for ammonia and 91.5% for
UAN. Excluding the impact of the Linde air separation unit outage,
the on-stream factors for the three months ended December 31,
2011 would have been 97.6% for gasifier, 97.1% for ammonia and
94.1% for UAN.
|
|
|
|
Excluding
the impact of the Linde air separation unit outage and the major
scheduled turnaround, the on-stream factors for the year ended
December 31, 2012 would have been 98.1% for gasifier, 97.1%
for ammonia and 92.8% for UAN. Excluding the impact of the Linde
air separation unit outage, the on-stream factors for the year
ended December 31, 2011 would have been 99.2% for gasifier,
98.0% for ammonia and 95.7% 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 GAAP-based results. 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
December 31,
|
Year
Ended
December 31,
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
(in
millions, except per share data)
|
|
Reconciliation of Net Income to Adjusted Net
Income:
|
|
|
|
|
|
Net Income
attributable to CVR Energy stockholders
|
$
40.2
|
$
65.9
|
$
378.6
|
$
345.8
|
|
Adjustments (all net of taxes):
|
|
|
|
|
|
FIFO impact (favorable) unfavorable
|
7.9
|
(21.3)
|
35.5
|
(15.5)
|
|
Share-based compensation
|
6.2
|
2.1
|
22.5
|
18.6
|
|
Loss on extinguishment of debt
|
22.8
|
—
|
22.8
|
1.3
|
|
Major scheduled turnaround expense
|
56.1
|
32.8
|
77.2
|
40.2
|
|
Loss on disposition of fixed assets
|
—
|
0.6
|
—
|
1.5
|
|
Unrealized (gain) loss on derivatives, net
|
(29.8)
|
(55.8)
|
90.0
|
(51.7)
|
|
Expenses associated with proxy matters
|
—
|
—
|
26.8
|
—
|
|
Expenses associated with the acquisition of
Gary-Williams (1)
|
0.4
|
5.2
|
6.7
|
5.5
|
|
Adjusted net income
|
$ 103.8
|
$ 29.5
|
$ 660.1
|
$ 345.7
|
|
|
|
|
|
|
|
Adjusted net income per diluted share
|
$
1.20
|
$
0.34
|
$
7.55
|
$
3.94
|
|
|
|
(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.
Adjusted Petroleum and Nitrogen Fertilizer EBITDA represents
operating income adjusted for FIFO impacts (favorable) unfavorable,
share-based compensation, major scheduled turnaround expenses,
realized gain (loss) on derivatives, net, loss on disposition of
fixed assets, depreciation and amortization and other income
(expense). Adjusted EBITDA by operating segment is not a recognized
term under GAAP and should not be substituted for operating income
as a measure of performance but should be utilized as a
supplemental measure of performance in evaluating our business.
Management believes that adjusted EBITDA by operating segment
provides relevant and useful information that enables investors to
better understand and evaluate our ongoing operating results and
allows for greater transparency in the reviewing of our overall
financial, operational and economic performance. Below is a
reconciliation of operating income to adjusted EBITDA for the
petroleum and nitrogen fertilizer segments for the three months and
year ended December 31, 2012 and
2011:
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
(in
millions)
|
|
Petroleum:
|
|
|
|
|
|
Petroleum
operating income
|
$
121.3
|
$
(3.3)
|
$
1,012.5
|
$
465.7
|
|
FIFO impacts (favorable)
unfavorable
|
12.9
|
(35.1)
|
58.4
|
(25.6)
|
|
Share-based
compensation
|
4.7
|
0.7
|
13.5
|
8.7
|
|
Major scheduled turnaround
expenses
|
89.1
|
54.1
|
123.7
|
66.4
|
|
Loss on disposition of fixed
assets
|
—
|
1.0
|
—
|
2.5
|
|
Realized gain (loss) on
derivatives, net
|
(57.1)
|
11.1
|
(137.6)
|
(7.2)
|
|
Depreciation and
amortization
|
27.3
|
19.0
|
107.6
|
69.9
|
|
Other income
|
—
|
0.1
|
0.8
|
0.5
|
|
Adjusted
Petroleum EBITDA
|
$ 198.2
|
$ 47.6
|
$ 1,178.9
|
$ 580.9
|
|
|
Three
Months Ended
December 31,
|
Year
Ended
December 31,
|
|
|
2012
|
2011
|
2012
|
2011
|
|
|
(in
millions)
|
|
Nitrogen Fertilizer:
|
|
|
|
|
|
Nitrogen
Fertilizer operating income
|
$
16.0
|
$
42.6
|
$
115.8
|
$
136.2
|
|
Share-based
compensation
|
1.6
|
0.9
|
6.8
|
7.3
|
|
Depreciation and
amortization
|
4.9
|
4.9
|
20.7
|
18.9
|
|
Major scheduled turnaround
expense
|
4.6
|
—
|
4.8
|
—
|
|
Other income, net
|
—
|
—
|
0.1
|
0.2
|
|
Adjusted
Nitrogen Fertilizer EBITDA
|
$ 27.1
|
$ 48.4
|
$ 148.2
|
$ 162.6
|
|
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 December 31,
2012. The positions are primarily in the form of 'crack
spread' swap agreements with financial counterparties, wherein the
Company will receive the fixed prices noted below.
Commodity Swaps
|
Barrels
|
Fixed
Price(1)
|
First
Quarter 2013
|
6,600,000
|
$
25.02
|
Second
Quarter 2013
|
5,850,000
|
27.25
|
Third
Quarter 2013
|
5,625,000
|
25.89
|
Fourth
Quarter 2013
|
4,875,000
|
26.98
|
|
|
|
First
Quarter 2014
|
150,000
|
32.95
|
Second
Quarter 2014
|
75,000
|
32.00
|
Third
Quarter 2014
|
75,000
|
32.00
|
Fourth
Quarter 2014
|
75,000
|
32.00
|
|
|
|
Total
|
23,325,000
|
$ 26.32
|
|
|
(1)
|
Weighted-average price of all positions for period
indicated.
|
SOURCE CVR Energy, Inc.