SUGAR LAND, Texas, Feb. 19, 2015 /PRNewswire/ -- CVR Energy,
Inc. (NYSE: CVI) today announced full year 2014 net income of
$173.9 million, or $2.00 per diluted share, on net sales of
$9,109.5 million, compared to net
income for full year 2013 of $370.7
million, or $4.27 per diluted
share, on net sales of $8,985.8
million. Full year 2014 adjusted EBITDA, a non-GAAP
financial measure, was $473.5 million
compared to full year 2013 adjusted EBITDA of $659.7 million.
For the fourth quarter of 2014, the company reported a net loss
of $44.4 million, or a loss of
51 cents per diluted share, on net
sales of $1,841.8 million, compared
to a fourth quarter 2013 net loss of $21.7
million, or a loss of 25 cents
per diluted share, on net sales of $2,436.0
million. Net income for the 2014 fourth quarter was
negatively affected by an unfavorable first-in, first-out (FIFO)
accounting impact of $154.6
million.
Fourth quarter 2014 adjusted EBITDA was $81.7 million compared to adjusted EBITDA of
$110.0 million for the same period a
year earlier.
"Our fourth quarter results were primarily impacted by volatile
crude and product markets as well as an unplanned outage of the
Fluid Catalytic Cracking Unit at CVR Refining's Wynnewood refinery," said Jack Lipinski, CVR Energy's chief executive
officer. "Refining margins have significantly improved since
mid-January, and the Coffeyville
and Wynnewood refineries have
operated well year to date.
"At CVR Partners, the fertilizer plant posted some of its
highest production and operating rates for the year during the
fourth quarter," Lipinski said.
CVR Energy also announced a fourth quarter 2014 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
March 9, 2015, to stockholders of
record on March 2, 2015.
Today, CVR Refining announced a 2014 fourth quarter cash
distribution of 37 cents per common
unit, and CVR Partners announced a 2014 fourth quarter cash
distribution of 41 cents per common
unit.
"We continue to return cash to stockholders through quarterly
dividends," Lipinski said. "CVR Energy's fourth quarter cash
dividend of 50 cents per share brings
the cumulative cash dividends paid or declared for 2014 to
$4.75 per share."
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported a
fourth quarter 2014 operating loss of $113.3
million, on net sales of $1,772.8
million, compared to fourth quarter 2013 operating income of
$14.9 million, on net sales of
$2,360.9 million.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $11.28 in the 2014 fourth quarter, compared to
$11.48 during the same period in
2013. Direct operating expenses, including major scheduled
turnaround expenses, per barrel sold, exclusive of depreciation and
amortization, for the 2014 fourth quarter was $5.76, compared to $4.27 in the fourth quarter of 2013.
Fourth quarter 2014 throughputs of crude oil and all other
feedstocks and blendstocks totaled 212,263 barrels per day (bpd),
compared to fourth quarter 2013 throughputs of crude oil and all
other feedstocks and blendstocks of 216,876 bpd.
Nitrogen Fertilizers Business
The fertilizer business, operated by CVR Partners, reported
fourth quarter 2014 operating income of $26.5 million on net sales of $74.4 million, compared to operating income of
$29.7 million on net sales of
$84.3 million for the fourth quarter
of 2013.
For the fourth quarter of 2014, average realized gate prices for
UAN and ammonia were $247 per ton and
$547 per ton, respectively, compared
to $253 per ton and $478 per ton, respectively, for the same period
in 2013.
CVR Partners produced 105,900 tons of ammonia and purchased an
additional 3,900 tons of ammonia during the fourth quarter of 2014,
of which 4,400 net tons were available for sale while the rest was
upgraded to 259,600 tons of UAN. In the 2013 fourth quarter, the
plant produced 98,900 tons of ammonia and purchased an additional
12,300 tons of ammonia, of which 1,600 net tons were available for
sale and the remainder was upgraded to 270,100 tons of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$370.2 million for CVR Refining and
$79.9 million for CVR Partners, was
$753.7 million at Dec. 31, 2014. Consolidated total debt was
$674.9 million at Dec. 31, 2014. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Fourth Quarter 2014 Earnings Conference Call
CVR Energy previously announced that it will host its fourth
quarter 2014 Earnings Conference Call for analysts and investors on
Thursday, Feb. 19, at 3 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the
Internet at http://www.videonewswire.com/event.asp?id=101504. 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=101504. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13600358.
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 Contacts:
Jay
Finks
CVR Energy, Inc.
913-982-0481
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
281-207-3550
MediaRelations@CVREnergy.com
CVR Energy, Inc.
Financial and Operational Data (all
information in this release is unaudited other than the statements
of operations and cash flow data for the year ended December 31, 2013 and the balance sheet data as
of December 31, 2013).
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Three Months
Ended
December 31,
|
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Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in millions,
except per share data)
|
|
Consolidated
Statement of Operations Data:
|
|
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|
|
|
|
|
|
Net sales
|
$
|
1,841.8
|
|
|
$
|
2,436.0
|
|
|
$
|
9,109.5
|
|
|
$
|
8,985.8
|
|
|
Cost of product
sold
|
1,733.4
|
|
|
2,219.7
|
|
|
8,066.0
|
|
|
7,563.2
|
|
|
Direct operating
expenses
|
134.7
|
|
|
110.6
|
|
|
515.1
|
|
|
455.8
|
|
|
Selling, general and
administrative expenses
|
23.5
|
|
|
28.6
|
|
|
109.7
|
|
|
113.5
|
|
|
Depreciation and
amortization
|
40.8
|
|
|
37.4
|
|
|
154.4
|
|
|
142.8
|
|
|
Operating income
(loss)
|
(90.6)
|
|
|
39.7
|
|
|
264.3
|
|
|
710.5
|
|
|
Interest expense and
other financing costs
|
(11.2)
|
|
|
(10.9)
|
|
|
(40.0)
|
|
|
(50.5)
|
|
|
Interest
income
|
0.2
|
|
|
0.3
|
|
|
0.9
|
|
|
1.2
|
|
|
Gain (loss) on
derivatives, net
|
14.5
|
|
|
(115.9)
|
|
|
185.6
|
|
|
57.1
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
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|
|
—
|
|
|
(26.1)
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|
|
Other income
(expense), net
|
(3.6)
|
|
|
7.1
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|
|
(3.7)
|
|
|
13.5
|
|
|
Income (loss) before
income tax expense (benefit)
|
(90.7)
|
|
|
(79.7)
|
|
|
407.1
|
|
|
705.7
|
|
|
Income tax expense
(benefit)
|
(21.0)
|
|
|
(39.1)
|
|
|
97.7
|
|
|
183.7
|
|
|
Net income
(loss)
|
(69.7)
|
|
|
(40.6)
|
|
|
309.4
|
|
|
522.0
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|
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Less: Net income
(loss) attributable to noncontrolling interest
|
(25.3)
|
|
|
(18.9)
|
|
|
135.5
|
|
|
151.3
|
|
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
(44.4)
|
|
|
$
|
(21.7)
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|
|
$
|
173.9
|
|
|
$
|
370.7
|
|
|
|
|
|
|
|
|
|
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Basic earnings (loss)
per share
|
$
|
(0.51)
|
|
|
$
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(0.25)
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|
|
$
|
2.00
|
|
|
$
|
4.27
|
|
|
Diluted earnings
(loss) per share
|
$
|
(0.51)
|
|
|
$
|
(0.25)
|
|
|
$
|
2.00
|
|
|
$
|
4.27
|
|
|
Dividends declared
per share
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
5.00
|
|
|
$
|
14.25
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
81.7
|
|
|
$
|
110.0
|
|
|
$
|
473.5
|
|
|
$
|
659.7
|
|
|
Adjusted net
income*
|
$
|
24.4
|
|
|
$
|
61.7
|
|
|
$
|
218.4
|
|
|
$
|
348.6
|
|
|
Adjusted net income,
per diluted share*
|
$
|
0.28
|
|
|
$
|
0.71
|
|
|
$
|
2.51
|
|
|
$
|
4.01
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
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|
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|
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|
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Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
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|
|
Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
|
|
|
|
|
|
|
|
|
As of
December 31,
2014
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|
As of
December 31,
2013
|
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(in
millions)
|
|
Balance Sheet
Data:
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|
|
|
|
Cash and cash
equivalents
|
$
|
753.7
|
|
|
$
|
842.1
|
|
|
Working
capital
|
1,033.0
|
|
|
1,230.2
|
|
|
Total
assets
|
3,462.5
|
|
|
3,665.8
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|
|
Total debt, including
current portion
|
674.9
|
|
|
676.2
|
|
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Total CVR
stockholders' equity
|
988.1
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|
|
1,188.6
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|
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Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
millions)
|
|
Cash Flow
Data:
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Net cash flow
provided by (used in):
|
|
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|
|
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|
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Operating
activities
|
$
|
109.5
|
|
|
$
|
118.8
|
|
|
$
|
640.3
|
|
|
$
|
440.1
|
|
|
Investing
activities
|
(47.0)
|
|
|
(72.9)
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|
|
(296.6)
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|
|
(250.3)
|
|
|
Financing
activities
|
(101.9)
|
|
|
(90.9)
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|
|
(432.1)
|
|
|
(243.7)
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|
|
Net cash
flow
|
$
|
(39.4)
|
|
|
$
|
(45.0)
|
|
|
$
|
(88.4)
|
|
|
$
|
(53.9)
|
|
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 includes the
operations of the Coffeyville,
Kansas and Wynnewood,
Oklahoma refineries along with the 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 and
year ended December 31, 2014 are
included in CVR Refining's press release dated February 19,
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
year ended December 31, 2014 are
included in CVR Partners' press release dated February 19,
2015.
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|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
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|
Corporate and
Other
|
|
Consolidated
|
|
|
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(in
millions)
|
|
Three Months Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,772.8
|
|
|
$
|
74.4
|
|
|
$
|
(5.4)
|
|
|
$
|
1,841.8
|
|
|
Cost of product
sold
|
|
1,723.8
|
|
|
15.4
|
|
|
(5.8)
|
|
|
1,733.4
|
|
|
Direct operating
expenses (1)
|
|
111.6
|
|
|
21.7
|
|
|
0.1
|
|
|
133.4
|
|
|
Major scheduled
turnaround expenses
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|
Selling, general and
administrative
|
|
16.8
|
|
|
3.8
|
|
|
2.9
|
|
|
23.5
|
|
|
Depreciation and
amortization
|
|
32.6
|
|
|
7.0
|
|
|
1.2
|
|
|
40.8
|
|
|
Operating income
(loss)
|
|
$
|
(113.3)
|
|
|
$
|
26.5
|
|
|
$
|
(3.8)
|
|
|
$
|
(90.6)
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
37.1
|
|
|
$
|
7.6
|
|
|
$
|
2.3
|
|
|
$
|
47.0
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,829.7
|
|
|
$
|
298.7
|
|
|
$
|
(18.9)
|
|
|
$
|
9,109.5
|
|
|
Cost of product
sold
|
|
8,013.4
|
|
|
72.0
|
|
|
(19.4)
|
|
|
8,066.0
|
|
|
Direct operating
expenses (1)
|
|
409.2
|
|
|
98.9
|
|
|
0.2
|
|
|
508.3
|
|
|
Major scheduled
turnaround expenses
|
|
6.8
|
|
|
—
|
|
|
—
|
|
|
6.8
|
|
|
Selling, general and
administrative
|
|
70.6
|
|
|
17.7
|
|
|
21.4
|
|
|
109.7
|
|
|
Depreciation and
amortization
|
|
122.5
|
|
|
27.3
|
|
|
4.6
|
|
|
154.4
|
|
|
Operating income
(loss)
|
|
$
|
207.2
|
|
|
$
|
82.8
|
|
|
$
|
(25.7)
|
|
|
$
|
264.3
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
191.3
|
|
|
$
|
21.1
|
|
|
$
|
6.0
|
|
|
$
|
218.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
Three Months Ended
December 31, 2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,360.9
|
|
|
$
|
84.3
|
|
|
$
|
(9.2)
|
|
|
$
|
2,436.0
|
|
|
Cost of product
sold
|
|
2,209.7
|
|
|
18.9
|
|
|
(8.9)
|
|
|
2,219.7
|
|
|
Direct operating
expenses (1)
|
|
87.2
|
|
|
23.4
|
|
|
—
|
|
|
110.6
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
20.0
|
|
|
5.3
|
|
|
3.3
|
|
|
28.6
|
|
|
Depreciation and
amortization
|
|
29.1
|
|
|
7.0
|
|
|
1.3
|
|
|
37.4
|
|
|
Operating income
(loss)
|
|
$
|
14.9
|
|
|
$
|
29.7
|
|
|
$
|
(4.9)
|
|
|
$
|
39.7
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
63.7
|
|
|
$
|
7.9
|
|
|
$
|
1.3
|
|
|
$
|
72.9
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,683.5
|
|
|
$
|
323.7
|
|
|
$
|
(21.4)
|
|
|
$
|
8,985.8
|
|
|
Cost of product
sold
|
|
7,526.7
|
|
|
58.1
|
|
|
(21.6)
|
|
|
7,563.2
|
|
|
Direct operating
expenses (1)
|
|
361.7
|
|
|
94.1
|
|
|
—
|
|
|
455.8
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
77.8
|
|
|
21.0
|
|
|
14.7
|
|
|
113.5
|
|
|
Depreciation and
amortization
|
|
114.3
|
|
|
25.6
|
|
|
2.9
|
|
|
142.8
|
|
|
Operating income
(loss)
|
|
$
|
603.0
|
|
|
$
|
124.9
|
|
|
$
|
(17.4)
|
|
|
$
|
710.5
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
204.5
|
|
|
$
|
43.8
|
|
|
$
|
8.2
|
|
|
$
|
256.5
|
|
|
(1)
|
Excluding turnaround
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate
and Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
279.8
|
|
|
$
|
85.1
|
|
|
$
|
477.2
|
|
|
$
|
842.1
|
|
|
Total
assets
|
|
2,533.3
|
|
|
593.5
|
|
|
539.0
|
|
|
3,665.8
|
|
|
Total debt, including
current portion
|
|
582.7
|
|
|
125.0
|
|
|
(31.5)
|
|
|
676.2
|
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operated by CVR Refining, LP, of
which we own a majority interest and serve as 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
year ended December 31, 2014 are
included in CVR Refining's press release dated February 19,
2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
millions)
|
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,772.8
|
|
|
$
|
2,360.9
|
|
|
$
|
8,829.7
|
|
|
$
|
8,683.5
|
|
|
Cost of product
sold
|
1,723.8
|
|
|
2,209.7
|
|
|
8,013.4
|
|
|
7,526.7
|
|
|
Direct operating
expenses
|
111.6
|
|
|
87.2
|
|
|
409.2
|
|
|
361.7
|
|
|
Major scheduled
turnaround expenses
|
1.3
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
|
Selling, general and
administrative expenses
|
16.8
|
|
|
20.0
|
|
|
70.6
|
|
|
77.8
|
|
|
Depreciation and
amortization
|
32.6
|
|
|
29.1
|
|
|
122.5
|
|
|
114.3
|
|
|
Operating income
(loss)
|
(113.3)
|
|
|
14.9
|
|
|
207.2
|
|
|
603.0
|
|
|
Interest expense and
other financing costs
|
(9.7)
|
|
|
(9.3)
|
|
|
(34.2)
|
|
|
(44.1)
|
|
|
Interest
income
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.4
|
|
|
Gain (loss) on
derivatives, net
|
14.5
|
|
|
(115.9)
|
|
|
185.6
|
|
|
57.1
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.1)
|
|
|
Other income
(expense), net
|
(0.1)
|
|
|
—
|
|
|
(0.2)
|
|
|
0.1
|
|
|
Income (loss) before
income tax expense
|
(108.5)
|
|
|
(110.2)
|
|
|
358.7
|
|
|
590.4
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
(loss)
|
$
|
(108.5)
|
|
|
$
|
(110.2)
|
|
|
$
|
358.7
|
|
|
$
|
590.4
|
|
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
49.0
|
|
|
$
|
151.2
|
|
|
$
|
816.3
|
|
|
$
|
1,156.8
|
|
|
Gross profit
(loss)*
|
$
|
(96.5)
|
|
|
$
|
34.9
|
|
|
$
|
277.8
|
|
|
$
|
680.8
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
203.6
|
|
|
$
|
213.2
|
|
|
$
|
977.1
|
|
|
$
|
1,135.5
|
|
|
Adjusted Petroleum
EBITDA*
|
$
|
104.6
|
|
|
$
|
117.5
|
|
|
$
|
621.6
|
|
|
$
|
712.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(dollars per
barrel)
|
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
2.71
|
|
|
$
|
8.14
|
|
|
$
|
11.38
|
|
|
$
|
16.90
|
|
|
FIFO impact
(favorable) unfavorable
|
8.57
|
|
|
3.34
|
|
|
2.24
|
|
|
(0.31)
|
|
|
Refining margin
adjusted for FIFO impact*
|
11.28
|
|
|
11.48
|
|
|
13.62
|
|
|
16.59
|
|
|
Gross profit
(loss)*
|
(5.35)
|
|
|
1.88
|
|
|
3.87
|
|
|
9.94
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
6.26
|
|
|
4.70
|
|
|
5.80
|
|
|
5.28
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
6.19
|
|
|
4.70
|
|
|
5.70
|
|
|
5.28
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
5.76
|
|
|
$
|
4.27
|
|
|
$
|
5.44
|
|
|
$
|
5.00
|
|
|
Barrels sold (barrels
per day)
|
213,256
|
|
|
222,140
|
|
|
209,669
|
|
|
198,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Petroleum Segment
Summary Refining Throughput and Production Data
(bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
181,063
|
|
|
85.3
|
%
|
|
155,326
|
|
|
71.6
|
%
|
|
179,059
|
|
|
86.2
|
%
|
|
149,147
|
|
|
75.4
|
%
|
|
Medium
|
3,383
|
|
|
1.6
|
%
|
|
22,834
|
|
|
10.5
|
%
|
|
2,022
|
|
|
1.0
|
%
|
|
19,151
|
|
|
9.7
|
%
|
|
Heavy sour
|
11,700
|
|
|
5.5
|
%
|
|
23,614
|
|
|
10.9
|
%
|
|
15,464
|
|
|
7.4
|
%
|
|
19,270
|
|
|
9.8
|
%
|
|
Total crude oil
throughput
|
196,146
|
|
|
92.4
|
%
|
|
201,774
|
|
|
93.0
|
%
|
|
196,545
|
|
|
94.6
|
%
|
|
187,568
|
|
|
94.9
|
%
|
|
All other feedstocks
and blendstocks
|
16,117
|
|
|
7.6
|
%
|
|
15,102
|
|
|
7.0
|
%
|
|
11,284
|
|
|
5.4
|
%
|
|
10,121
|
|
|
5.1
|
%
|
|
Total
throughput
|
212,263
|
|
|
100.0
|
%
|
|
216,876
|
|
|
100.0
|
%
|
|
207,829
|
|
|
100.0
|
%
|
|
197,689
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
107,158
|
|
|
50.1
|
%
|
|
109,902
|
|
|
50.2
|
%
|
|
102,275
|
|
|
48.9
|
%
|
|
94,561
|
|
|
47.7
|
%
|
|
Distillate
|
88,119
|
|
|
41.2
|
%
|
|
90,572
|
|
|
41.3
|
%
|
|
87,639
|
|
|
41.9
|
%
|
|
82,089
|
|
|
41.4
|
%
|
|
Other (excluding
internally produced fuel)
|
18,526
|
|
|
8.7
|
%
|
|
18,689
|
|
|
8.5
|
%
|
|
19,149
|
|
|
9.2
|
%
|
|
21,617
|
|
|
10.9
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
213,803
|
|
|
100.0
|
%
|
|
219,163
|
|
|
100.0
|
%
|
|
209,063
|
|
|
100.0
|
%
|
|
198,267
|
|
|
100.0
|
%
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.93
|
|
|
|
|
$
|
2.40
|
|
|
|
|
$
|
2.53
|
|
|
|
|
$
|
2.72
|
|
|
|
|
Distillate
|
2.40
|
|
|
|
|
2.96
|
|
|
|
|
2.81
|
|
|
|
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
73.20
|
|
|
$
|
97.61
|
|
|
$
|
92.91
|
|
|
$
|
98.05
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
WTI less WTS
(light/medium sour)
|
2.19
|
|
|
4.14
|
|
|
5.95
|
|
|
2.64
|
|
|
WTI less WCS (heavy
sour)
|
15.42
|
|
|
31.66
|
|
|
18.48
|
|
|
24.58
|
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
|
Gasoline
|
9.83
|
|
|
14.14
|
|
|
17.29
|
|
|
21.44
|
|
|
Heating
Oil
|
24.12
|
|
|
28.02
|
|
|
23.59
|
|
|
27.60
|
|
|
NYMEX 2-1-1 Crack
Spread
|
16.97
|
|
|
21.08
|
|
|
20.44
|
|
|
24.52
|
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
|
Gasoline
|
(2.92)
|
|
|
(10.95)
|
|
|
(4.45)
|
|
|
(4.54)
|
|
|
Ultra Low Sulfur
Diesel
|
3.51
|
|
|
(2.65)
|
|
|
0.75
|
|
|
0.58
|
|
|
PADD II Group 3
Product Crack:
|
|
|
|
|
|
|
|
|
Gasoline
|
6.91
|
|
|
3.19
|
|
|
12.84
|
|
|
16.90
|
|
|
Ultra Low Sulfur
Diesel
|
27.63
|
|
|
25.36
|
|
|
24.34
|
|
|
28.18
|
|
|
PADD II Group 3
2-1-1
|
17.27
|
|
|
14.28
|
|
|
18.59
|
|
|
22.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in millions,
except operating statistics)
|
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,214.2
|
|
|
$
|
1,536.8
|
|
|
$
|
5,755.5
|
|
|
$
|
5,370.8
|
|
|
Cost of product
sold
|
1,186.3
|
|
|
1,442.2
|
|
|
5,254.9
|
|
|
4,648.6
|
|
|
Refining
margin*
|
27.9
|
|
|
94.6
|
|
|
500.6
|
|
|
722.2
|
|
|
Direct operating
expenses
|
54.4
|
|
|
48.7
|
|
|
223.6
|
|
|
219.4
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
Depreciation and
amortization
|
19.2
|
|
|
17.9
|
|
|
73.6
|
|
|
70.8
|
|
|
Gross profit
(loss)*
|
$
|
(45.7)
|
|
|
$
|
28.0
|
|
|
$
|
197.9
|
|
|
$
|
432.0
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
139.7
|
|
|
$
|
142.8
|
|
|
$
|
615.8
|
|
|
$
|
710.0
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
2.39
|
|
|
$
|
8.41
|
|
|
$
|
11.46
|
|
|
$
|
17.90
|
|
|
FIFO impact
(favorable) unfavorable
|
9.58
|
|
|
4.28
|
|
|
2.64
|
|
|
(0.30)
|
|
|
Refining margin
adjusted for FIFO impact*
|
11.97
|
|
|
12.69
|
|
|
14.10
|
|
|
17.60
|
|
|
Gross profit
(loss)*
|
(3.91)
|
|
|
2.49
|
|
|
4.53
|
|
|
10.71
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.66
|
|
|
4.33
|
|
|
5.24
|
|
|
5.44
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.66
|
|
|
4.33
|
|
|
5.12
|
|
|
5.44
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
4.10
|
|
|
$
|
3.78
|
|
|
$
|
4.73
|
|
|
$
|
5.00
|
|
|
Barrels sold (barrels
per day)
|
144,151
|
|
|
139,891
|
|
|
132,791
|
|
|
120,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
111,791
|
|
|
80.2
|
%
|
|
98,180
|
|
|
73.8
|
%
|
|
103,018
|
|
|
80.0
|
%
|
|
90,818
|
|
|
77.1
|
%
|
|
Medium
|
3,383
|
|
|
2.4
|
%
|
|
453
|
|
|
0.3
|
%
|
|
1,222
|
|
|
1.0
|
%
|
|
453
|
|
|
0.4
|
%
|
|
Heavy sour
|
11,700
|
|
|
8.4
|
%
|
|
23,614
|
|
|
17.8
|
%
|
|
15,464
|
|
|
12.0
|
%
|
|
19,270
|
|
|
16.3
|
%
|
|
Total crude oil
throughput
|
126,874
|
|
|
91.0
|
%
|
|
122,247
|
|
|
91.9
|
%
|
|
119,704
|
|
|
93.0
|
%
|
|
110,541
|
|
|
93.8
|
%
|
|
All other feedstocks
and blendstocks
|
12,510
|
|
|
9.0
|
%
|
|
10,773
|
|
|
8.1
|
%
|
|
9,047
|
|
|
7.0
|
%
|
|
7,253
|
|
|
6.2
|
%
|
|
Total
throughput
|
139,384
|
|
|
100.0
|
%
|
|
133,020
|
|
|
100.0
|
%
|
|
128,751
|
|
|
100.0
|
%
|
|
117,794
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
71,045
|
|
|
49.8
|
%
|
|
67,406
|
|
|
49.3
|
%
|
|
64,002
|
|
|
48.6
|
%
|
|
56,262
|
|
|
46.8
|
%
|
|
Distillate
|
60,448
|
|
|
42.4
|
%
|
|
57,280
|
|
|
41.9
|
%
|
|
56,381
|
|
|
42.8
|
%
|
|
50,353
|
|
|
41.9
|
%
|
|
Other (excluding
internally produced fuel)
|
11,206
|
|
|
7.8
|
%
|
|
11,943
|
|
|
8.8
|
%
|
|
11,314
|
|
|
8.6
|
%
|
|
13,499
|
|
|
11.3
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
142,699
|
|
|
100.0
|
%
|
|
136,629
|
|
|
100.0
|
%
|
|
131,697
|
|
|
100.0
|
%
|
|
120,114
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in millions,
except operating statistics)
|
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
557.5
|
|
|
$
|
823.0
|
|
|
$
|
3,069.8
|
|
|
$
|
3,308.4
|
|
|
Cost of product
sold
|
537.1
|
|
|
767.3
|
|
|
2,758.1
|
|
|
2,877.5
|
|
|
Refining
margin*
|
20.4
|
|
|
55.7
|
|
|
311.7
|
|
|
430.9
|
|
|
Direct operating
expenses
|
57.1
|
|
|
38.5
|
|
|
185.5
|
|
|
142.4
|
|
|
Major scheduled
turnaround expenses
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
|
Depreciation and
amortization
|
11.5
|
|
|
9.9
|
|
|
41.8
|
|
|
38.6
|
|
|
Gross profit
(loss)*
|
$
|
(49.5)
|
|
|
$
|
7.3
|
|
|
$
|
83.1
|
|
|
$
|
249.9
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
63.2
|
|
|
$
|
69.6
|
|
|
$
|
357.3
|
|
|
$
|
421.7
|
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
3.20
|
|
|
$
|
7.62
|
|
|
$
|
11.11
|
|
|
$
|
15.33
|
|
|
FIFO impact
(favorable) unfavorable
|
6.72
|
|
|
1.89
|
|
|
1.63
|
|
|
(0.33)
|
|
|
Refining margin
adjusted for FIFO impact*
|
9.92
|
|
|
9.51
|
|
|
12.74
|
|
|
15.00
|
|
|
Gross profit
(loss)*
|
(7.78)
|
|
|
1.00
|
|
|
2.96
|
|
|
8.89
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
9.17
|
|
|
5.27
|
|
|
6.66
|
|
|
5.06
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
8.96
|
|
|
5.27
|
|
|
6.61
|
|
|
5.06
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
9.19
|
|
|
$
|
5.09
|
|
|
$
|
6.66
|
|
|
$
|
5.00
|
|
|
Barrels sold (barrels
per day)
|
69,105
|
|
|
82,249
|
|
|
76,878
|
|
|
77,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
69,272
|
|
|
95.1
|
%
|
|
57,146
|
|
|
68.1
|
%
|
|
76,041
|
|
|
96.2
|
%
|
|
58,329
|
|
|
73.0
|
%
|
|
Medium
|
—
|
|
|
—
|
%
|
|
22,381
|
|
|
26.7
|
%
|
|
800
|
|
|
1.0
|
%
|
|
18,698
|
|
|
23.4
|
%
|
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
Total crude oil
throughput
|
69,272
|
|
|
95.1
|
%
|
|
79,527
|
|
|
94.8
|
%
|
|
76,841
|
|
|
97.2
|
%
|
|
77,027
|
|
|
96.4
|
%
|
|
All other feedstocks
and blendstocks
|
3,607
|
|
|
4.9
|
%
|
|
4,329
|
|
|
5.2
|
%
|
|
2,237
|
|
|
2.8
|
%
|
|
2,868
|
|
|
3.6
|
%
|
|
Total
throughput
|
72,879
|
|
|
100.0
|
%
|
|
83,856
|
|
|
100.0
|
%
|
|
79,078
|
|
|
100.0
|
%
|
|
79,895
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
36,113
|
|
|
50.8
|
%
|
|
42,496
|
|
|
51.5
|
%
|
|
38,273
|
|
|
49.5
|
%
|
|
38,299
|
|
|
49.0
|
%
|
|
Distillate
|
27,671
|
|
|
38.9
|
%
|
|
33,292
|
|
|
40.3
|
%
|
|
31,258
|
|
|
40.4
|
%
|
|
31,736
|
|
|
40.6
|
%
|
|
Other (excluding
internally produced fuel)
|
7,320
|
|
|
10.3
|
%
|
|
6,746
|
|
|
8.2
|
%
|
|
7,835
|
|
|
10.1
|
%
|
|
8,118
|
|
|
10.4
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
71,104
|
|
|
100.0
|
%
|
|
82,534
|
|
|
100.0
|
%
|
|
77,366
|
|
|
100.0
|
%
|
|
78,153
|
|
|
100.0
|
%
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we own a
majority interest and serve as general partner. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Nitrogen Fertilizer segment for the
quarter and year ended December 31,
2014 are included in CVR Partners' press release dated
February 19, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
millions)
|
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
74.4
|
|
|
$
|
84.3
|
|
|
$
|
298.7
|
|
|
$
|
323.7
|
|
|
Cost of product
sold
|
15.4
|
|
|
18.9
|
|
|
72.0
|
|
|
58.1
|
|
|
Direct operating
expenses
|
21.7
|
|
|
23.4
|
|
|
98.9
|
|
|
94.1
|
|
|
Selling, general and
administrative expenses
|
3.8
|
|
|
5.3
|
|
|
17.7
|
|
|
21.0
|
|
|
Depreciation and
amortization
|
7.0
|
|
|
7.0
|
|
|
27.3
|
|
|
25.6
|
|
|
Operating
income
|
26.5
|
|
|
29.7
|
|
|
82.8
|
|
|
124.9
|
|
|
Interest expense and
other financing costs
|
(1.7)
|
|
|
(1.7)
|
|
|
(6.7)
|
|
|
(6.3)
|
|
|
Other income,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Income before income
tax expense
|
24.8
|
|
|
28.0
|
|
|
76.1
|
|
|
118.7
|
|
|
Income tax
expense
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
Net income
|
$
|
24.8
|
|
|
$
|
27.9
|
|
|
$
|
76.1
|
|
|
$
|
118.6
|
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
33.5
|
|
|
$
|
36.6
|
|
|
$
|
110.3
|
|
|
$
|
152.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Production (thousand
tons):
|
|
|
|
|
|
|
|
|
Ammonia (gross
produced)(1)
|
105.9
|
|
|
98.9
|
|
|
388.9
|
|
|
402.0
|
|
|
Ammonia (net
available for sale)(1)(2)
|
4.4
|
|
|
1.6
|
|
|
28.3
|
|
|
37.9
|
|
|
UAN
|
259.6
|
|
|
270.1
|
|
|
963.7
|
|
|
930.6
|
|
|
|
|
|
|
|
|
|
|
Pet coke consumed
(thousand tons)
|
130.0
|
|
|
126.8
|
|
|
489.7
|
|
|
487.0
|
|
|
Pet coke (cost per
ton)
|
$
|
27
|
|
|
$
|
29
|
|
|
$
|
28
|
|
|
$
|
30
|
|
|
|
|
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
9.9
|
|
|
2.6
|
|
|
24.4
|
|
|
40.5
|
|
|
UAN
|
236.8
|
|
|
266.5
|
|
|
951.0
|
|
|
904.6
|
|
|
|
|
|
|
|
|
|
|
Product pricing at
gate (dollars per ton)(3):
|
|
|
|
|
|
|
|
|
Ammonia
|
$
|
547
|
|
|
$
|
478
|
|
|
$
|
518
|
|
|
$
|
643
|
|
|
UAN
|
$
|
247
|
|
|
$
|
253
|
|
|
$
|
259
|
|
|
$
|
282
|
|
|
|
|
|
|
|
|
|
|
On-stream
factor(4):
|
|
|
|
|
|
|
|
|
Gasification
|
99.6
|
%
|
|
100.0
|
%
|
|
96.8
|
%
|
|
95.6
|
%
|
|
Ammonia
|
98.2
|
%
|
|
99.5
|
%
|
|
92.6
|
%
|
|
94.4
|
%
|
|
UAN
|
95.8
|
%
|
|
98.8
|
%
|
|
92.0
|
%
|
|
91.9
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
588
|
|
|
$
|
483
|
|
|
$
|
539
|
|
|
$
|
581
|
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
293
|
|
|
$
|
287
|
|
|
$
|
314
|
|
|
$
|
337
|
|
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. As a result of the completion
of the UAN expansion project in February 2013, the Nitrogen
Fertilizer segment now upgrades substantially all of the ammonia it
produces 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 3,900 and 12,300 tons of ammonia during the three
months ended December 31, 2014 and 2013, respectively. The Nitrogen
Fertilizer segment acquired approximately 33,600 and 17,300 tons of
ammonia during the years ended December 31, 2014 and 2013,
respectively. The Nitrogen Fertilizer segment has upgraded or
expects to upgrade the majority of purchased ammonia to
UAN.
|
|
|
|
(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 shutdown for installation of the
waste heat boiler, the pressure swing adsorption unit upgrade and
the Linde air separation unit maintenance, the on-stream factors
for the year ended December 31, 2014
would have been 98.2% for gasifier, 94.3% for ammonia and 93.7% for
UAN. Excluding the impact of the UAN expansion coming on-line, the
planned downtime associated with the replacement of damaged
catalyst, the unplanned Linde air separation unit outages and the
unplanned downtime associated with weather issues, the on-stream
factors for the year ended December 31,
2013 would have been 99.5% for gasifier, 98.9% for ammonia
and 98.0% 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 non-GAAP
financial measures as 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 (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.
Adjusted net income per diluted share represents adjusted net
income divided by weighted-average diluted shares
outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in millions,
except per share data)
|
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income:
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax expense (benefit)
|
$
|
(90.7)
|
|
|
$
|
(79.7)
|
|
|
$
|
407.1
|
|
|
$
|
705.7
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
154.6
|
|
|
62.0
|
|
|
160.8
|
|
|
(21.3)
|
|
|
Share-based
compensation
|
1.5
|
|
|
4.7
|
|
|
12.3
|
|
|
18.4
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|
Major scheduled
turnaround expenses
|
1.3
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
|
(Gain) loss on
derivatives, net
|
(14.5)
|
|
|
115.9
|
|
|
(185.6)
|
|
|
(57.1)
|
|
|
Current period
settlement on derivative contracts (1)
|
29.0
|
|
|
10.3
|
|
|
122.2
|
|
|
6.4
|
|
|
Adjusted net income
before income tax expense and noncontrolling interest
|
81.2
|
|
|
113.2
|
|
|
523.6
|
|
|
678.2
|
|
|
Adjusted net income
attributed to noncontrolling interest
|
(32.8)
|
|
|
(36.0)
|
|
|
(178.4)
|
|
|
(160.4)
|
|
|
Income tax expense,
as adjusted
|
(24.0)
|
|
|
(15.5)
|
|
|
(126.8)
|
|
|
(169.2)
|
|
|
Adjusted net income
attributable to CVR Energy stockholders
|
$
|
24.4
|
|
|
$
|
61.7
|
|
|
$
|
218.4
|
|
|
$
|
348.6
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.28
|
|
|
$
|
0.71
|
|
|
$
|
2.51
|
|
|
$
|
4.01
|
|
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 that they are able to sell refined products. 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
impacts. 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) that 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 favorable FIFO
impacts when crude oil prices increase and unfavorable FIFO impacts
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 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 (loss). 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 (loss)
before (i) interest expense and other financing costs, net of
interest income, (ii) income tax expense (benefit) and (iii)
depreciation and amortization. Adjusted EBITDA represents EBITDA
adjusted for FIFO impacts (favorable) unfavorable, share-based
compensation, major scheduled turnaround expenses, (gain) loss on
derivatives, net, current period settlements on derivative
contracts and loss on extinguishment of debt. EBITDA and Adjusted
EBITDA are not recognized terms under GAAP and should not be
substituted for net income (loss) 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 (loss) to
EBITDA and EBITDA to Adjusted EBITDA for the three months and years
ended December 31, 2014 and
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
millions)
|
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
(44.4)
|
|
|
$
|
(21.7)
|
|
|
$
|
173.9
|
|
|
$
|
370.7
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
11.0
|
|
|
10.6
|
|
|
39.1
|
|
|
49.3
|
|
|
Income tax
expense (benefit)
|
(21.0)
|
|
|
(39.1)
|
|
|
97.7
|
|
|
183.7
|
|
|
Depreciation
and amortization
|
40.8
|
|
|
37.4
|
|
|
154.4
|
|
|
142.8
|
|
|
EBITDA adjustments
included in noncontrolling interest
|
(18.4)
|
|
|
(15.2)
|
|
|
(65.2)
|
|
|
(50.1)
|
|
|
EBITDA
|
(32.0)
|
|
|
(28.0)
|
|
|
399.9
|
|
|
696.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impacts,
(favorable) unfavorable
|
154.6
|
|
|
62.0
|
|
|
160.8
|
|
|
(21.3)
|
|
|
Share-based
compensation
|
1.5
|
|
|
4.7
|
|
|
12.3
|
|
|
18.4
|
|
|
Major scheduled
turnaround expenses
|
1.3
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
|
(Gain) loss on
derivatives, net
|
(14.5)
|
|
|
115.9
|
|
|
(185.6)
|
|
|
(57.1)
|
|
|
Current period
settlement on derivative contracts (1)
|
29.0
|
|
|
10.3
|
|
|
122.2
|
|
|
6.4
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|
Adjustments included
in noncontrolling interest
|
(58.2)
|
|
|
(54.9)
|
|
|
(42.9)
|
|
|
(9.2)
|
|
|
Adjusted
EBITDA
|
$
|
81.7
|
|
|
$
|
110.0
|
|
|
$
|
473.5
|
|
|
$
|
659.7
|
|
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 FIFO impacts (favorable) unfavorable;
share-based compensation, non-cash; major scheduled turnaround
expenses; loss on extinguishment of debt; (gain) loss on
derivatives, net; and current period settlements on derivative
contracts. 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. Adjusted EBITDA by
operating segment is not a recognized term under GAAP and should
not be substituted for operating income (loss) as a measure of
performance. Management believes that Adjusted EBITDA by operating
segment enables investors to better understand CVR Refining's and
CVR Partners' ability to make distributions to their common
unitholders, helps investors 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 net income (loss) to
EBITDA and EBITDA to Adjusted EBITDA for the Petroleum and Nitrogen
Fertilizer segments for the three months and years ended
December 31, 2014 and 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
millions)
|
|
Petroleum:
|
|
|
|
|
|
|
|
|
Petroleum net income
(loss)
|
$
|
(108.5)
|
|
|
$
|
(110.2)
|
|
|
$
|
358.7
|
|
|
$
|
590.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
9.6
|
|
|
9.2
|
|
|
33.9
|
|
|
43.7
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
32.6
|
|
|
29.1
|
|
|
122.5
|
|
|
114.3
|
|
|
Petroleum
EBITDA
|
(66.3)
|
|
|
(71.9)
|
|
|
515.1
|
|
|
748.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impacts
(favorable), unfavorable
|
154.6
|
|
|
62.0
|
|
|
160.8
|
|
|
(21.3)
|
|
|
Share-based
compensation, non-cash
|
0.5
|
|
|
1.2
|
|
|
2.3
|
|
|
9.5
|
|
|
Major scheduled
turnaround expenses
|
1.3
|
|
|
—
|
|
|
6.8
|
|
|
—
|
|
|
(Gain) loss on
derivatives, net
|
(14.5)
|
|
|
115.9
|
|
|
(185.6)
|
|
|
(57.1)
|
|
|
Current period
settlements on derivative contracts (1)
|
29.0
|
|
|
10.3
|
|
|
122.2
|
|
|
6.4
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
26.1
|
|
|
Adjusted Petroleum
EBITDA
|
$
|
104.6
|
|
|
$
|
117.5
|
|
|
$
|
621.6
|
|
|
$
|
712.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year
Ended
December 31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
millions)
|
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer
net income
|
$
|
24.8
|
|
|
$
|
27.9
|
|
|
$
|
76.1
|
|
|
$
|
118.6
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
1.7
|
|
|
1.7
|
|
|
6.7
|
|
|
6.3
|
|
|
Income tax
expense
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
Depreciation and
amortization
|
7.0
|
|
|
7.0
|
|
|
27.3
|
|
|
25.6
|
|
|
Nitrogen
Fertilizer EBITDA
|
33.5
|
|
|
36.7
|
|
|
110.1
|
|
|
150.6
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
(0.1)
|
|
|
0.2
|
|
|
2.2
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
33.5
|
|
|
$
|
36.6
|
|
|
$
|
110.3
|
|
|
$
|
152.8
|
|
|
|
|
(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.
|
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 December 31, 2014. 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
December 31, 2014 the open commodity swap positions below were
comprised of approximately 93.4% for distillate crack swaps and
6.6% for gasoline crack swaps.
|
|
|
|
|
|
|
|
|
|
Commodity
Swaps
|
|
Barrels
|
|
Fixed
Price(1)
|
|
First Quarter
2015
|
|
1,800,000
|
|
|
$
|
25.60
|
|
|
Second Quarter
2015
|
|
2,775,000
|
|
|
23.71
|
|
|
Third Quarter
2015
|
|
1,575,000
|
|
|
23.50
|
|
|
Fourth Quarter
2015
|
|
450,000
|
|
|
30.05
|
|
|
|
|
|
|
|
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
|
|
9,060,000
|
|
|
$
|
25.80
|
|
|
(1)
|
Weighted-average
price of all positions for period indicated.
|
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To view the original version on PR Newswire,
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SOURCE CVR Energy, Inc.