SUGAR LAND, Texas, May 2, 2013 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced first quarter 2013 net income of
$165.0 million, or $1.90 per diluted share, on net sales of
$2,352.4 million, compared to a net
loss of $25.2 million, or
29 cents per diluted share, on net
sales of $1,968.6 million for the
first quarter of 2012. Operating income for the first quarter of
2013 was $367.7 million, up from
$140.5 million in the same quarter of
2012.
(Logo:
http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
The company also announced a first quarter 2013 cash dividend of
75 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
May 17, 2013, to stockholders of
record on May 10, 2013.
The first quarter dividend brings cumulative 2013 cash dividends
paid to $6.25 per share. On
Jan. 24, 2013, CVR Energy declared a
special dividend of $5.50 per share,
which was paid on Feb. 19, 2013, to
shareholders of record on Feb. 5,
2013.
In addition, CVR Energy petroleum subsidiary, CVR Refining,
announced its first-ever quarterly cash distribution of
$1.58 per common unit. On
April 26, CVR Partners, CVR Energy's
fertilizer subsidiary, announced a first quarter record cash
distribution of 61 cents per common
unit.
"CVR Energy's solid first quarter results reflect the strong
operational performance of both of our business segments," said
Jack Lipinski, CVR Energy's chief
executive officer. "In our petroleum segment, CVR Refining's
Coffeyville and Wynnewood refineries posted record crude
throughput rates for the quarter. In our fertilizer segment,
CVR Partners completed construction of its expanded UAN plant and
also reported record UAN production and high on-stream rates for
the quarter.
"We are pleased to return cash to our stockholders through CVR
Energy's newly-established, regular quarterly cash dividend of
75 cents per share," Lipinski
said.
Petroleum Business
The petroleum business,
which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported first quarter
2013 operating income of $335.6
million, and adjusted EBITDA, a non-GAAP financial measure,
of $309.9 million, on net sales of
$2,274.0 million, compared to
operating income in the same quarter a year earlier of $134.9 million, and adjusted EBITDA of
$144.9 million, on net sales of
$1,898.5 million.
First quarter 2013 throughput of crude oil and all other
feedstocks and blendstocks totaled 204,590 barrels per day (bpd),
compared to 155,385 bpd for the same period in 2012. Crude oil
throughput for the first quarter 2013 averaged 194,816 bpd,
compared with 146,658 bpd for the same period in 2012.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $26.44 in the first quarter 2013 compared to
$18.62 during the same period in
2012. Direct operating expenses per barrel sold, exclusive of
depreciation and amortization, for the first quarter 2013 was
$4.64, down from $6.51 in the first quarter of 2012.
Coffeyville Refinery
The Coffeyville refinery reported first quarter
2013 gross profit of $227.8 million,
compared to $78.2 million of gross
profit for the first quarter of 2012. First quarter 2013 crude oil
throughput totaled 123,639 bpd, compared to 88,403 bpd in the first
quarter of 2012. Refining margin adjusted for FIFO impact per crude
oil throughput barrel for the first quarter of 2013 was
$26.12, compared to $17.94 for the same period in 2012. Direct
operating expenses per barrel sold for the 2013 first quarter was
$4.33, compared to direct operating
expenses, including turnaround expenses, per barrel sold of
$8.02 for the 2012 first quarter.
Wynnewood Refinery
The Wynnewood refinery had a first quarter 2013
gross profit of $126.9 million
compared to a gross profit of $70.9
million for the first quarter of 2012. First quarter of 2013
crude oil throughput totaled a record 71,177 bpd, compared to
58,255 bpd for the first quarter of 2012. Refining margin adjusted
for FIFO impact per crude oil throughput barrel for the first
quarter of 2013 was $26.87, compared
to $19.57 for the 2012 first quarter.
Direct operating expenses per barrel sold for the first quarter of
2013 was $5.22, compared to
$4.59 for the 2012 first quarter.
Nitrogen Fertilizers Business
The fertilizer
business operated by CVR Partners, LP reported first quarter 2013
operating income of $36.8 million,
and adjusted EBITDA, a non-GAAP financial measure, of $43.8 million, on net sales of $81.4 million, compared to operating income of
$31.4 million, and adjusted EBITDA of
$38.0 million, on net sales of
$78.3 million for the 2012 first
quarter.
CVR Partners produced 111,400 tons of ammonia during the first
quarter of 2013, of which 30,700 net tons were available for sale
while the rest was upgraded to a record 196,200 tons of more
profitable UAN. In the 2012 first quarter, the plant produced
89,300 tons of ammonia with 25,000 net tons available for sale with
the remainder upgraded to 154,600 tons of UAN.
For the first quarter 2013, average realized plant gate prices
for ammonia and UAN were $663 per ton
and $295 per ton, respectively,
compared to $613 per ton and
$313 per ton, respectively, for the
same period in 2012.
Cash and Debt
Consolidated cash and cash
equivalents, which included $525.1
million for CVR Refining and $153.2
million for CVR Partners, increased to $1,040.8 million at the end of the 2013 first
quarter compared to $896.0 million at
the end of 2012, primarily due to increased operating cash flows
from the petroleum business as well as net proceeds from CVR
Refining's initial public offering (IPO), which were partially
offset by approximately $477.6
million in dividends paid to CVR Energy stockholders.
Consolidated total debt at the end of the 2013 first quarter,
which included $552.0 million for CVR
Refining and $125.0 million for CVR
Partners, decreased to $677.0 million
compared to $898.2 million at the end
of 2012, largely due to the repayment of second lien notes using
proceeds from CVR Refining's IPO.
CVR Energy First Quarter 2013 Earnings Conference Call
Information
CVR Energy previously announced that it will
host its first quarter 2013 Earnings Conference Call for analysts
and investors on Thursday, May 2, at
2 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the
Internet at
http://www.videonewswire.com/event.asp?id=93184. 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=93184. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 411724.
Forward Looking Statements
This news release may
contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking
statements by our use of forward-looking terminology such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"explore," "evaluate," "intend," "may," "might," "plan,"
"potential," "predict," "seek," "should," or "will," or the
negative thereof or other variations thereon or comparable
terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. For a discussion of
risk factors which may affect our results, please see the risk
factors and other disclosures included in our most recent Annual
Report on Form 10-K, and any subsequently filed Quarterly
Reports on Form 10-Q. These risks may cause our actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
these forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking
statements included in this press release are made only as of the
date hereof. CVR Energy disclaims any intention or obligation
to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except to the extent required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified
holding company primarily engaged in the petroleum refining and
nitrogen fertilizer manufacturing industries through its holdings
in two limited partnerships, CVR Refining, LP and CVR Partners, LP.
CVR Energy subsidiaries serve as the general partner and own a
majority of the common units representing limited partner interests
of CVR Refining and CVR Partners.
For further information, please contact:
Investor Relations:
Jay
Finks
CVR Energy, Inc.
281-207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
913-982-0482
MediaRelations@CVREnergy.com
CVR
Energy, Inc.
|
Financial
and Operational Data (all information in this release is
unaudited unless noted otherwise).
|
|
|
Three
Months Ended
March
31,
|
Change
from 2012
|
|
|
2013
|
2012
|
Change
|
Percent
|
|
|
(in
millions, except per share data)
|
Consolidated Statement of Operations
Data:
|
|
|
|
|
|
Net
sales
|
|
$
2,352.4
|
$
1,968.6
|
$
383.8
|
19.5%
|
Cost of
product sold
|
|
1,813.6
|
1,635.2
|
178.4
|
10.9
|
Direct
operating expenses
|
|
108.5
|
115.5
|
(7.0)
|
(6.1)
|
Selling,
general and administrative expenses
|
|
28.4
|
45.3
|
(16.9)
|
(37.3)
|
Depreciation and amortization
|
|
34.2
|
32.1
|
2.1
|
6.5
|
Operating income
|
|
367.7
|
140.5
|
227.2
|
161.7
|
Interest
expense and other financing costs
|
|
(15.4)
|
(19.2)
|
3.8
|
(19.8)
|
Interest
income
|
|
0.3
|
—
|
0.3
|
—
|
Gain
(loss) on derivatives, net
|
|
|
|
|
|
Realized
|
|
(52.5)
|
(19.1)
|
(33.4)
|
174.9
|
Unrealized
|
|
32.5
|
(128.1)
|
160.6
|
(125.4)
|
Loss on
extinguishment of debt
|
|
(26.1)
|
—
|
(26.1)
|
—
|
Other
income, net
|
|
—
|
0.1
|
(0.1)
|
(100.0)
|
Income (loss) before income tax expense
(benefit)
|
|
306.5
|
(25.8)
|
332.3
|
1,288.0
|
Income tax
expense (benefit)
|
|
93.8
|
(9.8)
|
103.6
|
1,057.1
|
Net income (loss)
|
|
212.7
|
(16.0)
|
228.7
|
1,429.4
|
Net income attributable to noncontrolling
interest
|
|
47.7
|
9.2
|
38.5
|
418.5
|
Net income (loss) attributable to CVR Energy
stockholders
|
|
$ 165.0
|
$ (25.2)
|
$ 190.2
|
754.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per share
|
|
$
1.90
|
$
(0.29)
|
$
2.19
|
755.2%
|
Diluted
earnings (loss)per share
|
|
$
1.90
|
$
(0.29)
|
$
2.19
|
755.2%
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
|
$
286.6
|
$
166.1
|
$
120.5
|
72.5%
|
Adjusted
net income*
|
|
$
156.8
|
$
67.1
|
$
89.7
|
133.7%
|
Adjusted
net income, per diluted share*
|
|
$
1.81
|
$
0.76
|
$
1.05
|
138.2%
|
|
|
|
|
|
|
Weighted-average common shares
outstanding:
|
|
|
|
|
|
Basic
|
|
86,831,050
|
86,808,150
|
22,900
|
—
|
Diluted
|
|
86,831,050
|
86,808,150
|
22,900
|
—
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
2013
|
|
2012
|
|
|
|
(audited)
|
|
(in
millions)
|
Balance
Sheet Data:
|
|
|
|
Cash and
cash equivalents
|
$
1,040.8
|
|
$
896.0
|
Working
capital
|
1,283.2
|
|
1,135.4
|
Total
assets
|
3,772.1
|
|
3,610.9
|
Total
debt, including current portion
|
677.0
|
|
898.2
|
Total CVR
stockholders' equity
|
1,441.7
|
|
1,525.2
|
|
|
|
|
|
Three
Months Ended
March
31,
|
|
2013
|
|
2012
|
|
(in
millions)
|
Cash
Flow Data:
|
|
|
|
Net cash
flow provided by (used in):
|
|
|
|
Operating
activities
|
$
278.3
|
|
$
186.3
|
Investing
activities
|
(63.7)
|
|
(59.4)
|
Financing
activities
|
(69.8)
|
|
(14.4)
|
Net cash flow
|
$ 144.8
|
|
$ 112.5
|
|
|
|
|
Other
Financial Data:
|
|
|
|
Capital
expenditures for property, plant and equipment
|
$
63.7
|
|
$
59.5
|
Segment Information
Our operations are organized into
two reportable segments, Petroleum and Nitrogen Fertilizer. Our
operations that are not included in the Petroleum and Nitrogen
Fertilizer segments are included in Corporate and Other segment
(along with elimination of intersegment transactions). The
Petroleum segment includes the operations of our Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with our
crude oil gathering and pipeline systems. Effective with its
initial public offering on January 23,
2013, our Petroleum segment is operated by CVR Refining, LP
("CVR Refining"), in which we own a majority interest as well as
the general partner. Detailed operating results for the Petroleum
segment for the quarter ended March 31,
2013 are included in CVR Refining's press release dated
May 2, 2013. The Nitrogen Fertilizer
segment is operated by CVR Partners, LP, ("CVR Partners") in which
we own a majority interest as well as the general partner. It
consists of a nitrogen fertilizer manufacturing facility that
utilizes a pet coke gasification process in producing nitrogen
fertilizer. Detailed operating results for the Nitrogen
Fertilizer segment for the quarter ended March 31, 2013 are included in CVR Partners'
press release dated May 1, 2013.
The Petroleum segment, as reported herein for the three months
ended March 31, 2012, is not
reflective of the full and actual financial statements of CVR
Refining as certain allocations that were charged to CVR Refining
were not made at the Petroleum segment. Beginning in 2013, the
financial statements of the Petroleum segment are the same as CVR
Refining's financial statements.
|
Petroleum
|
Nitrogen Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
Three
months ended March 31, 2013
|
|
|
|
|
Net
sales
|
$
2,274.0
|
$
81.4
|
$
(3.0)
|
$
2,352.4
|
Cost of
product sold
|
1,805.8
|
10.6
|
(2.8)
|
1,813.6
|
Direct
operating expenses (1)
|
86.0
|
22.6
|
(0.1)
|
108.5
|
Major
scheduled turnaround expense
|
—
|
—
|
—
|
—
|
Selling,
general & administrative
|
18.6
|
5.6
|
4.2
|
28.4
|
Depreciation and amortization
|
28.0
|
5.8
|
0.4
|
34.2
|
Operating income (loss)
|
$
335.6
|
$
36.8
|
$
(4.7)
|
$
367.7
|
|
|
|
|
|
Capital
expenditures
|
$
44.6
|
$
18.1
|
$
1.0
|
$
63.7
|
Three
months ended March 31, 2012
|
|
|
|
|
Net
sales
|
$
1,898.5
|
$
78.3
|
$
(8.2)
|
$
1,968.6
|
Cost of
product sold
|
1,630.7
|
12.6
|
(8.1)
|
1,635.2
|
Direct
operating expenses (1)
|
71.7
|
22.9
|
(0.1)
|
94.5
|
Major
scheduled turnaround expense
|
21.0
|
—
|
—
|
21.0
|
Selling,
general & administrative
|
13.9
|
6.0
|
25.4
|
45.3
|
Depreciation and amortization
|
26.3
|
5.4
|
0.4
|
32.1
|
Operating income (loss)
|
$
134.9
|
$
31.4
|
$
(25.8)
|
$
140.5
|
|
|
|
|
|
Capital
expenditures
|
$
35.4
|
$
22.3
|
$
1.8
|
$
59.5
|
|
|
(1)
|
Excluding
turnaround expenses.
|
|
|
|
Petroleum
|
Nitrogen Fertilizer
(CVR
Partners)
|
Corporate
and
Other
|
Consolidated
|
|
(in
millions)
|
March
31, 2013
|
|
|
|
|
Cash and
cash equivalents
|
$
525.1
|
$
153.2
|
$
362.5
|
$
1,040.8
|
Total
assets
|
2,693.3
|
660.1
|
418.7
|
3,772.1
|
Total
debt, including current portion
|
552.0
|
125.0
|
—
|
677.0
|
|
|
|
|
|
|
|
|
|
|
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
|
Petroleum Segment Operating Data
The following tables
set forth information about our consolidated Petroleum segment
operations and our Coffeyville and
Wynnewood refineries operated by
CVR Refining. Reconciliations of certain non-GAAP financial
measures are provided under "Use of Non-GAAP Financial Measures"
below. Additional discussion of operating results for the Petroleum
segment for the quarter ended March 31,
2013 are included in CVR Refining's press release dated
May 2, 2013.
|
Three
Months Ended
March 31,
|
|
2013
|
2012
|
|
(in
millions, except operating statistics)
|
Petroleum Segment Summary Financial
Results:
|
|
|
Net
sales
|
$
2,274.0
|
$
1,898.5
|
Cost of
product sold
|
1,805.8
|
1,630.7
|
Refining margin*
|
468.2
|
267.8
|
Direct
operating expenses
|
86.0
|
71.7
|
Major
scheduled turnaround expense
|
—
|
21.0
|
Depreciation and amortization
|
28.0
|
26.3
|
Gross profit
|
354.2
|
148.8
|
Selling,
general and administrative expenses
|
18.6
|
13.9
|
Operating income
|
$ 335.6
|
$ 134.9
|
|
|
|
Refining
margin adjusted for FIFO impact*
|
$
463.5
|
$
248.5
|
|
|
|
Adjusted
Petroleum EBITDA*
|
$
309.9
|
$
144.9
|
|
|
|
Petroleum Segment Key Operating
Statistics:
|
|
|
Per crude
oil throughput barrel:
|
|
|
Refining margin*
|
$
26.71
|
$
20.07
|
FIFO impact (favorable) unfavorable
|
(0.27)
|
(1.45)
|
Refining margin adjusted for FIFO impact*
|
26.44
|
18.62
|
Gross profit
|
20.20
|
11.15
|
Direct operating expenses and major scheduled
turnaround expenses
|
4.91
|
6.95
|
Direct
operating expenses and major scheduled turnaround expenses per
barrel sold
|
$
4.64
|
$
6.51
|
Barrels
sold (barrels per day)
|
205,875
|
156,573
|
|
|
|
|
|
|
|
|
Three
Months Ended
March
31,
|
|
|
2013
|
2012
|
Petroleum Segment Summary Refining Throughput and
Production Data:
|
|
|
|
|
|
(barrels per day)
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
Sweet
|
|
156,725
|
76.6%
|
110,636
|
71.2%
|
Medium
|
|
14,757
|
7.2%
|
24,982
|
16.1%
|
Heavy sour
|
|
23,334
|
11.4%
|
11,040
|
7.1%
|
Total crude oil throughput
|
|
194,816
|
95.2%
|
146,658
|
94.4%
|
All other feedstocks and blendstocks
|
|
9,774
|
4.8%
|
8,727
|
5.6%
|
Total throughput
|
|
204,590
|
100.0%
|
155,385
|
100.0%
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
Gasoline
|
|
98,184
|
47.8%
|
81,291
|
52.6%
|
Distillate
|
|
83,841
|
40.8%
|
62,329
|
40.4%
|
Other (excluding internally produced fuel)
|
|
23,543
|
11.4%
|
10,879
|
7.0%
|
Total refining production (excluding internally
produced fuel)
|
|
205,568
|
100.0%
|
154,499
|
100.0%
|
Product
price (dollars per gallon):
|
|
|
|
|
|
Gasoline
|
|
$
2.82
|
|
$
2.87
|
|
Distillate
|
|
3.11
|
|
3.12
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2013
|
2012
|
Market
Indicators (dollars per barrel):
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
94.36
|
$
103.03
|
Crude Oil
Differentials:
|
|
|
WTI less WTS (light/medium sour)
|
6.33
|
3.67
|
WTI less WCS (heavy sour)
|
27.26
|
27.12
|
NYMEX
Crack Spreads:
|
|
|
Gasoline
|
31.24
|
25.44
|
Heating Oil
|
33.43
|
29.61
|
NYMEX 2-1-1 Crack Spread
|
32.33
|
27.53
|
PADD II
Group 3 Basis:
|
|
|
Gasoline
|
(7.57)
|
(6.78)
|
Ultra Low Sulfur Diesel
|
2.09
|
(1.64)
|
PADD II
Group 3 Product Crack:
|
|
|
Gasoline
|
23.66
|
18.66
|
Ultra Low Sulfur Diesel
|
35.52
|
27.98
|
PADD II
Group 3 2-1-1
|
29.59
|
23.32
|
|
|
|
|
|
|
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
(in
millions, except operating statistics)
|
Coffeyville Refinery Financial
Results:
|
|
|
Net
sales
|
$
1,492.6
|
$
1,132.5
|
Cost of
product sold
|
1,195.1
|
973.1
|
Refining margin*
|
297.5
|
159.4
|
Direct
operating expenses
|
52.2
|
43.8
|
Major
scheduled turnaround expense
|
—
|
20.1
|
Depreciation and amortization
|
17.5
|
17.3
|
Gross profit
|
$ 227.8
|
$
78.2
|
|
|
|
Refining
margin adjusted for FIFO impact*
|
$
290.7
|
$
144.3
|
|
|
|
Coffeyville Refinery Key Operating
Statistics:
|
|
|
Per crude
oil throughput barrel:
|
|
|
Refining margin*
|
$
26.73
|
$
19.82
|
FIFO impact (favorable) unfavorable
|
(0.61)
|
(1.88)
|
Refining margin adjusted for FIFO impact*
|
26.12
|
17.94
|
Gross profit
|
20.47
|
9.73
|
Direct operating expenses and major scheduled
turnaround expense
|
4.69
|
7.94
|
Direct
operating expenses and major scheduled turnaround expense
per barrel sold
|
$
4.33
|
$
8.02
|
Barrels
sold (barrels per day)
|
133,746
|
87,534
|
|
|
|
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
Coffeyville Refinery Throughput and Production
Data:
|
|
|
|
|
(barrels per day)
|
|
|
|
|
Throughput:
|
|
|
|
|
Sweet
|
99,793
|
76.0%
|
71,916
|
76.7%
|
Medium
|
512
|
0.4%
|
5,447
|
5.8%
|
Heavy sour
|
23,334
|
17.8%
|
11,040
|
11.8%
|
Total crude oil throughput
|
123,639
|
94.2%
|
88,403
|
94.3%
|
All other feedstocks and blendstocks
|
7,570
|
5.8%
|
5,367
|
5.7%
|
Total throughput
|
131,209
|
100.0%
|
93,770
|
100.0%
|
|
|
|
|
|
Production:
|
|
|
|
|
Gasoline
|
62,414
|
46.7%
|
50,269
|
53.0%
|
Distillate
|
55,602
|
41.6%
|
41,075
|
43.3%
|
Other (excluding internally
produced fuel)
|
15,717
|
11.7%
|
3,492
|
3.7%
|
Total refining production (excluding internally
produced fuel)
|
133,733
|
100.0%
|
94,836
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
(in
millions, except operating statistics)
|
Wynnewood Refinery Financial
Results:
|
|
|
Net
sales
|
$
780.4
|
$
766.0
|
Cost of
product sold
|
610.4
|
658.0
|
Refining margin*
|
170.0
|
108.0
|
Direct
operating expenses
|
33.8
|
27.9
|
Major
scheduled turnaround expense
|
—
|
0.9
|
Depreciation and amortization
|
9.3
|
8.3
|
Gross profit
|
$ 126.9
|
$ 70.9
|
|
|
|
Refining
margin adjusted for FIFO impact*
|
$
172.1
|
$
103.8
|
|
|
|
Wynnewood Refinery Key Operating
Statistics:
|
|
|
Per crude
oil throughput barrel:
|
|
|
Refining margin*
|
$
26.55
|
$
20.36
|
FIFO impact (favorable) unfavorable
|
0.32
|
(0.79)
|
Refining margin adjusted for FIFO impact*
|
26.87
|
19.57
|
Gross profit
|
19.80
|
13.36
|
Direct operating expenses and major scheduled
turnaround expense
|
5.29
|
5.43
|
Direct
operating expenses and major scheduled turnaround expense
per barrel sold
|
$
5.22
|
$
4.59
|
Barrels
sold (barrels per day)
|
72,129
|
69,039
|
|
|
|
|
|
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
Wynnewood Refinery Throughput and Production
Data:
|
|
|
|
|
(barrels per day)
|
|
|
|
|
Throughput:
|
|
|
|
|
Sweet
|
56,932
|
77.6%
|
38,720
|
62.8%
|
Medium
|
14,245
|
19.4%
|
19,535
|
31.7%
|
Heavy sour
|
—
|
—%
|
—
|
—%
|
Total crude oil throughput
|
71,177
|
97.0%
|
58,255
|
94.5%
|
All other feedstocks and blendstocks
|
2,204
|
3.0%
|
3,360
|
5.5%
|
Total throughput
|
73,381
|
100.0%
|
61,615
|
100.0%
|
|
|
|
|
|
Production:
|
|
|
|
|
Gasoline
|
35,770
|
49.8%
|
31,022
|
52.0%
|
Distillate
|
28,239
|
39.3%
|
21,254
|
35.6%
|
Other (excluding internally
produced fuel)
|
7,826
|
10.9%
|
7,387
|
12.4%
|
Total refining production (excluding internally
produced fuel)
|
71,835
|
100.0%
|
59,663
|
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 March 31, 2013 are
included in CVR Partners' press release dated May 1, 2013.
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
(in
millions, except as noted)
|
Nitrogen Fertilizer Segment Financial
Results:
|
|
|
Net
sales
|
$
81.4
|
$
78.3
|
Cost of
product sold
|
10.6
|
12.6
|
Direct
operating expenses
|
22.6
|
22.9
|
Major
scheduled turnaround expense
|
—
|
—
|
Selling,
general and administrative expenses
|
5.6
|
6.0
|
Depreciation and amortization
|
5.8
|
5.4
|
|
|
|
Operating income
|
$ 36.8
|
$ 31.4
|
|
|
|
Adjusted
Nitrogen Fertilizer EBITDA*
|
$
43.8
|
$
38.0
|
|
|
|
|
|
|
Three
Months Ended March
31,
|
|
2013
|
|
2012
|
|
(in
millions, except as noted)
|
Nitrogen Fertilizer Segment Key Operating
Statistics:
|
|
|
|
Production
(thousand tons):
|
|
|
|
Ammonia (gross produced) (1)
|
111.4
|
|
89.3
|
Ammonia (net available for sale) (1)
|
30.7
|
|
25.0
|
UAN
|
196.2
|
|
154.6
|
|
|
|
|
Petroleum
coke consumed (thousand tons)
|
129.8
|
|
120.5
|
Petroleum
coke (cost per ton)
|
$
31
|
|
$
42
|
|
|
|
|
Sales
(thousand tons):
|
|
|
|
Ammonia
|
27.6
|
|
29.9
|
UAN
|
194.1
|
|
158.3
|
|
|
|
|
Product
pricing (plant gate) (dollars per ton) (2):
|
|
|
|
Ammonia
|
$
663
|
|
$
613
|
UAN
|
$
295
|
|
$
313
|
|
|
|
|
On-stream
factors (3):
|
|
|
|
Gasification
|
99.5%
|
|
93.3%
|
Ammonia
|
98.8%
|
|
91.5%
|
UAN
|
92.8%
|
|
83.6%
|
|
|
|
|
Market
Indicators:
|
|
|
|
Ammonia —
Southern Plains (dollars per ton)
|
$
696
|
|
$
586
|
UAN — Mid
Corn belt (dollars per ton)
|
$
378
|
|
$
343
|
|
|
|
|
|
|
|
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, including ammonia
produced that was upgraded into UAN. As a result of the recently
completed UAN expansion project, we expect to upgrade substantially
all of the ammonia we produce into UAN. The net tons available for
sale represent 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
downtime associated with the UAN expansion coming on-line, the
on-stream factors for the three months ended March 31, 2013 would
have been 99.5% for gasifier, 98.8% for ammonia and 98.3% for
UAN.
|
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the
applicable periods, the Company also uses the non-GAAP measures
discussed below, which are reconciled to our GAAP-based results
below. These non-GAAP financial measures should not be considered
an alternative for GAAP results. The adjustments are provided to
enhance an overall understanding of the Company's financial
performance for the applicable periods and are indicators
management believes are relevant and useful for planning and
forecasting future periods.
Adjusted net income is not a recognized term under GAAP and
should not be substituted for net income (loss) as a measure
of our performance but rather should be utilized as a supplemental
measure of financial performance in evaluating our business.
Management believes that adjusted net income provides relevant and
useful information that enables external users of our financial
statements, such as industry analysts, investors, lenders and
rating agencies to better understand and evaluate our ongoing
operating results and allow for greater transparency in the review
of our overall financial, operational and economic performance.
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
(in
millions, except per share data)
|
Reconciliation of Net Income (Loss) to Adjusted
Net Income:
|
|
|
Income
(loss) before income tax expense (benefit)
|
$
306.5
|
$
(25.8)
|
Adjustments:
|
|
|
FIFO impact (favorable) unfavorable
|
(4.7)
|
(19.3)
|
Share-based compensation
|
6.0
|
4.0
|
Loss on extinguishment of debt
|
26.1
|
—
|
Major scheduled turnaround expense
|
—
|
21.0
|
Unrealized (gain) loss on derivatives, net
|
(32.5)
|
128.1
|
Expenses associated with proxy matters
|
—
|
14.8
|
Expenses associated with the acquisition of
Gary-Williams (1)
|
—
|
3.7
|
Adjusted income before income tax expense (benefit)
and noncontrolling interest
|
301.4
|
126.5
|
Adjusted net income attributable to noncontrolling
interest
|
(56.1)
|
(9.6)
|
Income tax expense, as adjusted
|
(88.5)
|
(49.8)
|
Adjusted net income attributable to CVR Energy
stockholders
|
$ 156.8
|
$ 67.1
|
|
|
|
Adjusted net income per diluted share
|
$
1.81
|
$
0.76
|
|
|
(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.
EBITDA and Adjusted EBITDA. EBITDA represents net income before
(i) interest expense and other financing costs, net of interest
income, (ii) income tax expense and (iii) depreciation and
amortization. Adjusted EBITDA represents EBITDA adjusted for FIFO
impacts (favorable) unfavorable, share-based compensation, major
scheduled turnaround expenses, loss on disposition of fixed assets,
unrealized (gain) loss on derivatives, net, loss on extinguishment
of debt and expenses associated with the Gary-Williams acquisition.
EBITDA and Adjusted EBITDA are not recognized terms under GAAP and
should not be substituted for net income or cash flow from
operations. Management believes that EBITDA and Adjusted EBITDA
enables investors to better understand and evaluate our ongoing
operating results and allows for greater transparency in reviewing
our overall financial, operational and economic performance. EBTIDA
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 months ended
March 31, 2013 and 2012:
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
|
(in
millions)
|
|
Net income
(loss) attributable to CVR Energy
stockholders
|
$
165.0
|
$
(25.2)
|
|
Add:
|
|
|
|
Interest expense and other financing costs, net of
interest income
|
15.1
|
19.2
|
|
Income tax expense
|
93.8
|
(9.8)
|
|
Depreciation and amortization
|
34.2
|
32.1
|
|
EBITDA adjustments included in noncontrolling
interest
|
(8.0)
|
(2.0)
|
|
EBITDA
|
300.1
|
14.3
|
|
Add:
|
|
|
|
FIFO impacts (favorable) unfavorable
|
(4.7)
|
(19.3)
|
|
Share-based compensation
|
6.0
|
4.0
|
|
Major scheduled turnaround expense
|
—
|
21.0
|
|
Unrealized (gain) loss on derivatives, net
|
(32.5)
|
128.1
|
|
Loss on extinguishment of debt
|
26.1
|
—
|
|
Expenses associated with proxy matter
|
—
|
14.8
|
|
Expenses associated with Gary-Williams
acquisition
|
—
|
3.7
|
|
Adjustments included in noncontrolling
interest
|
(8.4)
|
(0.5)
|
|
Adjusted EBITDA
|
$ 286.6
|
$ 166.1
|
|
|
|
|
Adjusted Petroleum and Nitrogen Fertilizer EBITDA represents
operating income adjusted for FIFO impacts (favorable) unfavorable;
share-based compensation, non-cash; major scheduled turnaround
expenses; realized gain (loss) on derivatives, net; loss on
disposition of fixed assets; depreciation and amortization and
other income (expense). We present Adjusted EBITDA by operating
segment because it is the starting point for CVR Refining's and CVR
Partner's available cash for distribution. Adjusted EBITDA by
operating segment is not a recognized term under GAAP and should
not be substituted for operating income as a measure of
performance. Management believes that Adjusted EBITDA by operating
segment enables investors to better understand CVR Refining's and
CVR Partner's ability to make distributions to their common
unitholders, evaluate our ongoing operating results and
allows for greater transparency in reviewing our overall financial,
operational and economic performance. Adjusted EBITDA presented by
other companies may not be comparable to our presentation, since
each company may define these terms differently. Below is a
reconciliation of operating income to adjusted EBITDA for the
petroleum and nitrogen fertilizer segments for the three months
ended March 31, 2013 and 2012:
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
(in
millions)
|
Petroleum:
|
|
|
Petroleum
operating income
|
$
335.6
|
$
134.9
|
FIFO impacts (favorable) unfavorable
|
(4.7)
|
(19.3)
|
Share-based compensation, non-cash
|
3.5
|
1.0
|
Major scheduled turnaround expenses
|
—
|
21.0
|
Loss on disposition of fixed assets
|
—
|
—
|
Realized gain (loss) on derivatives, net
|
(52.5)
|
(19.1)
|
Depreciation and amortization
|
28.0
|
26.3
|
Other income
|
—
|
0.1
|
Adjusted
Petroleum EBITDA
|
$ 309.9
|
$ 144.9
|
|
|
|
|
|
|
Three
Months Ended
March
31,
|
|
2013
|
2012
|
|
(in
millions)
|
Nitrogen Fertilizer:
|
|
|
Nitrogen
Fertilizer operating income
|
$
36.8
|
$
31.4
|
Share-based compensation, non-cash
|
1.2
|
1.2
|
Depreciation and amortization
|
5.8
|
5.4
|
Major scheduled turnaround expense
|
—
|
—
|
Other income (expense), net
|
—
|
—
|
Adjusted
Nitrogen Fertilizer EBITDA
|
$ 43.8
|
$ 38.0
|
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 March 31, 2013.
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)
|
Second Quarter
2013
|
7,650,000
|
27.69
|
Third Quarter
2013
|
5,775,000
|
25.92
|
Fourth Quarter
2013
|
4,875,000
|
26.98
|
|
|
|
First Quarter
2014
|
3,000,000
|
33.50
|
Second Quarter
2014
|
1,350,000
|
32.18
|
Third Quarter
2014
|
75,000
|
32.00
|
Fourth Quarter
2014
|
75,000
|
32.00
|
|
|
|
Total
|
22,800,000
|
$ 28.15
|
|
|
(1)
|
Weighted-average price of all positions for period
indicated.
|
SOURCE CVR Energy, Inc.