SUGAR LAND, Texas, April 30, 2015 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced first quarter 2015 net income of
$54.9 million, or 63 cents per diluted share, on net sales of
$1,388.9 million, compared to net
income of $126.7 million, or
$1.46 per diluted share, on net sales
of $2,447.4 million for the 2014
first quarter.
First quarter 2015 adjusted EBITDA, a non-GAAP financial
measure, was $163.7 million, compared
to first quarter 2014 adjusted EBITDA of $154.1 million.
"CVR Energy's 2015 first quarter results reflect the solid
financial and operational performance of our fertilizer and
petroleum subsidiaries," said Jack
Lipinski, CVR Energy's chief executive officer. "Group 3
refining margins gradually improved from the extreme lows of early
January and peaked at the end of February. Margins leveled off in
late March, but continue to be favorable.
"CVR Partners benefitted from strong customer demand for UAN and
high on-stream rates at its fertilizer plant during the quarter,"
Lipinski said.
The company also announced a first quarter 2015 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
May 18, 2015, to stockholders of
record on May 11, 2015.
Today, CVR Refining announced a 2015 first quarter cash
distribution of 76 cents per common
unit, and CVR Partners announced a 2015 first quarter cash
distribution of 45 cents per common
unit.
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
first quarter 2015 operating income of $109.2 million on net sales of $1,304.4 million, compared to operating income of
$164.6 million on net sales of
$2,375.3 million in the first quarter
of 2014.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $15.03 in the 2015 first quarter, compared to
$15.98 during the same period in
2014. Direct operating expenses per barrel sold, exclusive of
depreciation and amortization, for the 2015 first quarter was
$4.44, compared to $5.08 in the first quarter of 2014.
First quarter 2015 throughputs of crude oil and all other
feedstocks and blendstocks totaled 215,023 barrels per day (bpd),
compared to first quarter 2014 throughputs of crude oil and all
other feedstocks and blendstocks of 214,056 bpd.
Nitrogen Fertilizers Business
The fertilizer business, operated by CVR Partners, reported
first quarter 2015 operating income of $31.5
million on net sales of $93.1
million, compared to operating income of $23.1 million on net sales of $80.3 million for the first quarter of 2014.
For the first quarter of 2015, average realized gate prices for
urea ammonium nitrate (UAN) and ammonia were $263 per ton and $553 per ton, respectively, compared to
$253 per ton and $479 per ton, respectively, for the same period
in 2014.
CVR Partners produced 96,000 tons of ammonia and purchased an
additional 21,200 tons of ammonia during the first quarter of 2015,
of which 14,600 net tons were available for sale while the rest was
upgraded to 252,100 tons of UAN. In the 2014 first quarter, the
plant produced 91,000 tons of ammonia and purchased an additional
22,900 tons of ammonia, of which 8,900 net tons were available for
sale while the remainder was upgraded to 257,200 tons of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$422.1 million for CVR Refining and
$72.6 million for CVR Partners, was
$852.2 million at March 31, 2015. Consolidated total debt was
$674.6 million at March 31, 2015. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
First Quarter 2015 Earnings Conference Call
CVR Energy previously announced that it will host its first
quarter 2015 Earnings Conference Call for analysts and investors on
Thursday, April 30, at 3 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the
Internet at
http://www.videonewswire.com/event.asp?id=102100. 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=102100. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13606920.
Forward-Looking Statements
This news release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking statements by
our use of forward-looking terminology such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "explore,"
"evaluate," "intend," "may," "might," "plan," "potential,"
"predict," "seek," "should," or "will," or the negative thereof or
other variations thereon or comparable terminology. These
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond our
control. For a discussion of risk factors which may affect our
results, please see the risk factors and other disclosures included
in our most recent Annual Report on Form 10-K, any subsequently
filed Quarterly Reports on Form 10-Q and our other SEC filings.
These risks may cause our actual results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Given these risks and uncertainties,
you are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements included
in this press release are made only as of the date hereof. CVR
Energy disclaims any intention or obligation to update publicly or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except to the extent
required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land,
Texas, CVR Energy is a diversified holding company primarily
engaged in the petroleum refining and nitrogen fertilizer
manufacturing industries through its holdings in two limited
partnerships, CVR Refining, LP and CVR Partners, LP. CVR Energy
subsidiaries serve as the general partner and own a majority of the
common units representing limited partner interests of CVR Refining
and CVR Partners.
For further information, please contact:
Investor Contact:
Jay
Finks
CVR Energy, Inc.
913-982-0481
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
281-207-3550
MediaRelations@CVREnergy.com
|
CVR Energy,
Inc.
|
Financial and
Operations Data (all information in this release is unaudited
unless noted otherwise).
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
|
|
|
|
Net sales
|
$
|
1,388.9
|
|
$
|
2,447.4
|
Cost of product
sold
|
1,073.6
|
|
2,076.9
|
Direct operating
expenses
|
111.4
|
|
123.4
|
Selling, general and
administrative expenses
|
25.3
|
|
26.3
|
Depreciation and
amortization
|
42.0
|
|
37.3
|
Operating income
|
136.6
|
|
183.5
|
Interest expense and
other financing costs
|
(12.7)
|
|
(10.1)
|
Interest
income
|
0.2
|
|
0.2
|
Gain (loss) on
derivatives, net
|
(51.4)
|
|
109.4
|
Other income,
net
|
36.0
|
|
0.1
|
Income
before income tax expense
|
108.7
|
|
283.1
|
Income tax
expense
|
24.0
|
|
69.4
|
Net
income
|
84.7
|
|
213.7
|
Less:
Net income attributable to noncontrolling interest
|
29.8
|
|
87.0
|
Net
income attributable to CVR Energy stockholders
|
$
|
54.9
|
|
$
|
126.7
|
|
|
|
|
Basic earnings per
share
|
$
|
0.63
|
|
$
|
1.46
|
Diluted earnings per
share
|
$
|
0.63
|
|
$
|
1.46
|
Dividends declared
per share
|
$
|
0.50
|
|
$
|
0.75
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
163.7
|
|
$
|
154.1
|
Adjusted net
income*
|
$
|
84.9
|
|
$
|
81.9
|
Adjusted net income,
per diluted share*
|
$
|
0.98
|
|
$
|
0.94
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
Basic
|
86.8
|
|
86.8
|
Diluted
|
86.8
|
|
86.8
|
|
|
|
|
As of March 31,
2015
|
|
As of December 31,
2014
|
|
|
|
(audited)
|
|
(in
millions)
|
Balance Sheet
Data:
|
|
|
|
Cash and cash
equivalents
|
$
|
852.2
|
|
$
|
753.7
|
Working
capital
|
1,038.2
|
|
1,033.0
|
Total
assets
|
3,456.1
|
|
3,462.5
|
Total debt, including
current portion
|
674.6
|
|
674.9
|
Total CVR
stockholders' equity
|
999.5
|
|
988.1
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in
millions)
|
Cash Flow
Data:
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
Operating
activities
|
$
|
178.2
|
|
$
|
281.3
|
Investing
activities
|
(3.4)
|
|
(61.9)
|
Financing
activities
|
(76.3)
|
|
(99.4)
|
Net cash
flow
|
$
|
98.5
|
|
$
|
120.0
|
Segment Information
Our operations are organized into two reportable segments,
Petroleum and Nitrogen Fertilizer. Our operations that are not
included in the Petroleum and Nitrogen Fertilizer segments are
included in the Corporate and Other segment (along with elimination
of intersegment transactions). The Petroleum segment is operated by
CVR Refining, LP ("CVR Refining"), in which we own a majority
interest as well as the general partner. The Petroleum segment
includes the operations of the Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with the
crude oil gathering and pipeline systems. Detailed operating
results for the Petroleum segment for the quarter ended
March 31, 2015 are included in CVR
Refining's press release dated April 30,
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 ended March 31, 2015 are
included in CVR Partners' press release dated April 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
(in
millions)
|
Three Months Ended
March 31, 2015
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,304.4
|
|
|
$
|
93.1
|
|
|
$
|
(8.6)
|
|
|
$
|
1,388.9
|
Cost of product
sold
|
1,056.1
|
|
|
25.8
|
|
|
(8.3)
|
|
|
1,073.6
|
Direct operating
expenses
|
87.0
|
|
|
24.4
|
|
|
—
|
|
|
111.4
|
Selling, general and
administrative
|
18.1
|
|
|
4.6
|
|
|
2.6
|
|
|
25.3
|
Depreciation and
amortization
|
34.0
|
|
|
6.8
|
|
|
1.2
|
|
|
42.0
|
Operating income (loss)
|
$
|
109.2
|
|
|
$
|
31.5
|
|
|
$
|
(4.1)
|
|
|
$
|
136.6
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
41.7
|
|
|
$
|
2.7
|
|
|
$
|
1.1
|
|
|
$
|
45.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
(in
millions)
|
Three Months Ended
March 31, 2014
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,375.3
|
|
|
$
|
80.3
|
|
|
$
|
(8.2)
|
|
|
$
|
2,447.4
|
Cost of product
sold
|
2,063.3
|
|
|
21.7
|
|
|
(8.1)
|
|
|
2,076.9
|
Direct operating
expenses
|
99.2
|
|
|
24.2
|
|
|
—
|
|
|
123.4
|
Selling, general and
administrative
|
18.7
|
|
|
4.6
|
|
|
3.0
|
|
|
26.3
|
Depreciation and
amortization
|
29.5
|
|
|
6.7
|
|
|
1.1
|
|
|
37.3
|
Operating income (loss)
|
$
|
164.6
|
|
|
$
|
23.1
|
|
|
$
|
(4.2)
|
|
|
$
|
183.5
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
57.9
|
|
|
$
|
3.4
|
|
|
$
|
0.6
|
|
|
$
|
61.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
(in
millions)
|
March 31,
2015
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
422.1
|
|
|
$
|
72.6
|
|
|
$
|
357.5
|
|
|
$
|
852.2
|
Total
assets
|
2,419.5
|
|
|
568.1
|
|
|
468.5
|
|
|
3,456.1
|
Total debt, including
current portion
|
581.1
|
|
|
125.0
|
|
|
(31.5)
|
|
|
674.6
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
370.2
|
|
|
$
|
79.9
|
|
|
$
|
303.6
|
|
|
$
|
753.7
|
Total
assets
|
2,417.8
|
|
|
578.8
|
|
|
465.9
|
|
|
3,462.5
|
Total debt, including
current portion
|
581.4
|
|
|
125.0
|
|
|
(31.5)
|
|
|
674.9
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operated by CVR Refining, 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 ended
March 31, 2015 are included in CVR
Refining's press release dated April 30,
2015.
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in
millions)
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
Net sales
|
$
|
1,304.4
|
|
|
$
|
2,375.3
|
Cost of product
sold
|
1,056.1
|
|
|
2,063.3
|
Direct operating
expenses
|
87.0
|
|
|
99.2
|
Selling, general and
administrative expenses
|
18.1
|
|
|
18.7
|
Depreciation and
amortization
|
34.0
|
|
|
29.5
|
Operating
income
|
109.2
|
|
|
164.6
|
Interest expense and
other financing costs
|
(11.3)
|
|
|
(8.7)
|
Interest
income
|
0.1
|
|
|
0.1
|
Gain (loss) on
derivatives, net
|
(51.4)
|
|
|
109.4
|
Other income,
net
|
0.1
|
|
|
—
|
Income before income
tax expense
|
46.7
|
|
|
265.4
|
Income tax
expense
|
—
|
|
|
—
|
Net income
|
$
|
46.7
|
|
|
$
|
265.4
|
|
|
|
|
Refining
margin*
|
$
|
248.3
|
|
|
$
|
312.0
|
Gross
profit*
|
$
|
127.3
|
|
|
$
|
183.3
|
Refining margin
adjusted for FIFO impact*
|
$
|
272.8
|
|
|
$
|
290.4
|
Adjusted Petroleum
EBITDA*
|
$
|
161.7
|
|
|
$
|
194.1
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(dollars per
barrel)
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
Refining
margin*
|
$
|
13.68
|
|
|
$
|
17.17
|
FIFO impact
(favorable) unfavorable
|
1.35
|
|
|
(1.19)
|
Refining margin
adjusted for FIFO impact*
|
15.03
|
|
|
15.98
|
Gross
profit*
|
7.02
|
|
|
10.09
|
Direct operating
expenses
|
4.79
|
|
|
5.46
|
Direct operating
expenses per barrel sold
|
$
|
4.44
|
|
|
$
|
5.08
|
Barrels sold (barrels
per day)
|
217,686
|
|
|
217,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
Petroleum Segment
Summary Refining Throughput and Production Data
(bpd):
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
Sweet
|
175,376
|
|
81.6
|
%
|
|
178,253
|
|
83.3
|
%
|
Medium
|
6,630
|
|
3.1
|
%
|
|
3,047
|
|
1.4
|
%
|
Heavy
sour
|
19,658
|
|
9.1
|
%
|
|
20,602
|
|
9.6
|
%
|
Total crude oil
throughput
|
201,664
|
|
93.8
|
%
|
|
201,902
|
|
94.3
|
%
|
All other feedstocks
and blendstocks
|
13,359
|
|
6.2
|
%
|
|
12,154
|
|
5.7
|
%
|
Total
throughput
|
215,023
|
|
100.0
|
%
|
|
214,056
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
Gasoline
|
109,096
|
|
50.2
|
%
|
|
104,452
|
|
48.5
|
%
|
Distillate
|
89,436
|
|
41.1
|
%
|
|
88,901
|
|
41.2
|
%
|
Other (excluding
internally produced fuel)
|
18,857
|
|
8.7
|
%
|
|
22,093
|
|
10.3
|
%
|
Total refining
production (excluding internally produced fuel)
|
217,389
|
|
100.0
|
%
|
|
215,446
|
|
100.0
|
%
|
Production price
(dollars per gallon):
|
|
|
|
|
|
|
Gasoline
|
$
|
1.48
|
|
|
|
$
|
2.66
|
|
|
Distillate
|
1.69
|
|
|
|
3.00
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
Market Indicators
(dollars per barrel):
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
48.57
|
|
$
|
98.61
|
Crude Oil
Differentials:
|
|
|
|
WTI less
WTS (light/medium sour)
|
0.99
|
|
5.58
|
WTI less
WCS (heavy sour)
|
13.62
|
|
20.87
|
NYMEX Crack
Spreads:
|
|
|
|
Gasoline
|
18.54
|
|
18.12
|
Heating
Oil
|
27.06
|
|
27.95
|
NYMEX 2-1-1
Crack Spread
|
22.80
|
|
23.04
|
PADD II Group 3
Basis:
|
|
|
|
Gasoline
|
(3.50)
|
|
(4.87)
|
Ultra
Low Sulfur Diesel
|
(4.52)
|
|
(1.94)
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
Gasoline
|
15.04
|
|
13.25
|
Ultra
Low Sulfur Diesel
|
22.54
|
|
26.01
|
PADD II Group 3
2-1-1
|
18.79
|
|
19.63
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in millions,
except operating statistics)
|
Coffeyville
Refinery Financial Results:
|
|
|
|
Net sales
|
$
|
851.7
|
|
$
|
1,572.3
|
Cost of product
sold
|
700.9
|
|
1,358.8
|
Refining
margin*
|
150.8
|
|
213.5
|
Direct operating
expenses
|
50.4
|
|
53.3
|
Depreciation and
amortization
|
19.4
|
|
18.0
|
Gross
profit*
|
$
|
81.0
|
|
$
|
142.2
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
169.2
|
|
$
|
196.9
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
Refining
margin*
|
$
|
13.21
|
|
$
|
19.14
|
FIFO impact
(favorable) unfavorable
|
1.61
|
|
(1.49)
|
Refining margin
adjusted for FIFO impact*
|
14.82
|
|
17.65
|
Gross
profit*
|
7.10
|
|
12.75
|
Direct operating
expenses
|
4.42
|
|
4.78
|
Direct operating
expenses per barrel sold
|
$
|
3.97
|
|
$
|
4.26
|
Barrels sold (barrels
per day)
|
140,974
|
|
139,016
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
Sweet
|
100,532
|
|
73.4
|
%
|
|
101,856
|
|
76.3
|
%
|
Medium
|
6,630
|
|
4.8
|
%
|
|
1,495
|
|
1.1
|
%
|
Heavy
sour
|
19,658
|
|
14.3
|
%
|
|
20,602
|
|
15.4
|
%
|
Total crude oil
throughput
|
126,820
|
|
92.5
|
%
|
|
123,953
|
|
92.8
|
%
|
All other feedstocks
and blendstocks
|
10,227
|
|
7.5
|
%
|
|
9,670
|
|
7.2
|
%
|
Total
throughput
|
137,047
|
|
100.0
|
%
|
|
133,623
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
Gasoline
|
67,853
|
|
48.3
|
%
|
|
66,316
|
|
48.4
|
%
|
Distillate
|
59,415
|
|
42.3
|
%
|
|
57,825
|
|
42.2
|
%
|
Other (excluding
internally produced fuel)
|
13,228
|
|
9.4
|
%
|
|
12,776
|
|
9.4
|
%
|
Total refining
production (excluding internally produced fuel)
|
140,496
|
|
100.0
|
%
|
|
136,917
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in millions,
except operating statistics)
|
Wynnewood Refinery
Financial Results:
|
|
|
|
Net sales
|
$
|
451.7
|
|
$
|
802.0
|
Cost of product
sold
|
355.6
|
|
704.5
|
Refining
margin*
|
96.1
|
|
97.5
|
Direct operating
expenses
|
36.6
|
|
45.6
|
Depreciation and
amortization
|
12.5
|
|
10.0
|
Gross
profit*
|
$
|
47.0
|
|
$
|
41.9
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
102.2
|
|
$
|
92.5
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
Refining
margin*
|
$
|
14.27
|
|
$
|
13.89
|
FIFO impact
(favorable) unfavorable
|
0.91
|
|
(0.72)
|
Refining margin
adjusted for FIFO impact*
|
15.18
|
|
13.17
|
Gross
profit*
|
6.98
|
|
5.97
|
Direct operating
expenses
|
5.43
|
|
6.49
|
Direct operating
expenses per barrel sold
|
$
|
5.30
|
|
$
|
6.48
|
Barrels sold (barrels
per day)
|
76,712
|
|
78,170
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
Sweet
|
74,844
|
|
96.0
|
%
|
|
76,397
|
|
95.0
|
%
|
Medium
|
—
|
|
—
|
%
|
|
1,552
|
|
1.9
|
%
|
Heavy
sour
|
—
|
|
—
|
%
|
|
—
|
|
—
|
%
|
Total crude oil
throughput
|
74,844
|
|
96.0
|
%
|
|
77,949
|
|
96.9
|
%
|
All other feedstocks
and blendstocks
|
3,132
|
|
4.0
|
%
|
|
2,484
|
|
3.1
|
%
|
Total
throughput
|
77,976
|
|
100.0
|
%
|
|
80,433
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
Gasoline
|
41,243
|
|
53.7
|
%
|
|
38,136
|
|
48.6
|
%
|
Distillate
|
30,021
|
|
39.0
|
%
|
|
31,076
|
|
39.6
|
%
|
Other (excluding
internally produced fuel)
|
5,629
|
|
7.3
|
%
|
|
9,317
|
|
11.8
|
%
|
Total refining
production (excluding internally produced fuel)
|
76,893
|
|
100.0
|
%
|
|
78,529
|
|
100.0
|
%
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we own a
majority interest and serve as general partner. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Nitrogen Fertilizer segment for the
quarter ended March 31, 2015 are
included in CVR Partners' press release dated April 30, 2015.
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in
millions)
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
Net sales
|
$
|
93.1
|
|
|
$
|
80.3
|
|
Cost of product
sold
|
25.8
|
|
|
21.7
|
|
Direct operating
expenses
|
24.4
|
|
|
24.2
|
|
Selling, general and
administrative expenses
|
4.6
|
|
|
4.6
|
|
Depreciation and
amortization
|
6.8
|
|
|
6.7
|
|
Operating
income
|
31.5
|
|
|
23.1
|
|
Interest expense and
other financing costs
|
(1.7)
|
|
|
(1.6)
|
|
Income before income
tax expense
|
29.8
|
|
|
21.5
|
|
Income tax
expense
|
—
|
|
|
—
|
|
Net income
|
$
|
29.8
|
|
|
$
|
21.5
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
38.4
|
|
|
$
|
29.9
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2015
|
|
2014
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
Production (thousand
tons):
|
|
|
|
Ammonia (gross
produced)(1)
|
96.0
|
|
|
91.0
|
|
Ammonia (net
available for sale)(1)(2)
|
14.6
|
|
|
8.9
|
|
UAN
|
252.1
|
|
|
257.2
|
|
|
|
|
|
Pet coke consumed
(thousand tons)
|
124.9
|
|
|
124.8
|
|
Pet coke (cost per
ton)
|
$
|
29
|
|
|
$
|
29
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
Ammonia
|
12.8
|
|
|
5.4
|
|
UAN
|
274.5
|
|
|
254.7
|
|
|
|
|
|
Product pricing at
gate (dollars per ton)(3):
|
|
|
|
Ammonia
|
$
|
553
|
|
|
$
|
479
|
|
UAN
|
$
|
263
|
|
|
$
|
253
|
|
|
|
|
|
On-stream
factors(4):
|
|
|
|
Gasification
|
99.4
|
%
|
|
98.8
|
%
|
Ammonia
|
94.4
|
%
|
|
92.1
|
%
|
UAN
|
97.8
|
%
|
|
97.0
|
%
|
|
|
|
|
Market
Indicators:
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
553
|
|
|
$
|
441
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
313
|
|
|
$
|
332
|
|
|
|
|
Cost of product sold, direct operating expenses and selling,
general and administrative expenses are all reflected exclusive of
depreciation and amortization.
* See Use of Non-GAAP Financial Measures below.
|
|
(1)
|
Gross tons produced
for ammonia represent total ammonia produced, including ammonia
produced that was upgraded into UAN. Net tons available for sale
represent the ammonia available for sale that was not upgraded into
UAN.
|
|
|
(2)
|
In addition to the
produced ammonia, the Nitrogen Fertilizer segment acquired
approximately 21,200 and 22,900 tons of ammonia during the three
months ended March 31, 2015 and 2014, respectively.
|
|
|
(3)
|
Product pricing at
gate per ton represents net sales less freight revenue divided by
product sales volume in tons and is shown in order to provide a
pricing measure that is comparable across the fertilizer
industry.
|
|
|
(4)
|
On-stream factor is
the total number of hours operated divided by the total number of
hours in the reporting period and is a measure of operating
efficiency.
|
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 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
March 31,
|
|
2015
|
|
2014
|
|
(in millions,
except per share data)
|
Reconciliation of
Net Income to Adjusted Net Income:
|
|
|
|
Income before income
tax expense
|
$
|
108.7
|
|
$
|
283.1
|
Adjustments:
|
|
|
|
FIFO impact (favorable) unfavorable
|
24.5
|
|
(21.6)
|
Share-based
compensation
|
4.0
|
|
4.1
|
(Gain) loss on
derivatives, net
|
51.4
|
|
(109.4)
|
Current period
settlement on derivative contracts (1)
|
(6.3)
|
|
21.1
|
Adjusted net
income before income tax expense and noncontrolling
interest
|
182.3
|
|
177.3
|
Adjusted net income
attributed to noncontrolling interest
|
(53.7)
|
|
(55.3)
|
Income tax expense, as
adjusted
|
(43.7)
|
|
(40.1)
|
Adjusted net income
attributable to CVR Energy stockholders
|
$
|
84.9
|
|
$
|
81.9
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.98
|
|
$
|
0.94
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between the Petroleum segment's net
sales and cost of product sold (exclusive of depreciation and
amortization). Refining margin is a non-GAAP measure that we
believe is important to investors in evaluating the refineries'
performance as a general indication of the amount above their cost
of product sold at which they are able to sell refined products.
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 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
per crude throughput barrel is calculated as gross profit as
derived above divided by the refineries' crude oil throughput
volumes for the respective periods presented. Gross profit is a
non-GAAP measure that should not be substituted for operating
income. Management believes it is important to investors in
evaluating the refineries' performance and the Petroleum segment's
ongoing operating results. Our calculation of gross profit may
differ from similar calculations of other companies in the
industry, thereby limiting its usefulness as a comparative
measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income before
(i) interest expense and other financing costs, net of interest
income, (ii) income tax expense and (iii) depreciation and
amortization. Adjusted EBITDA represents EBITDA adjusted for (i)
FIFO impacts (favorable) unfavorable, (ii) share-based
compensation, (iii) loss on extinguishment of debt, (iv) major
scheduled turnaround expenses, (v) (gain) loss on derivatives, net
and (vi) current period settlements on derivative contracts. EBITDA
and Adjusted EBITDA are not recognized terms under GAAP and should
not be substituted for net income or cash flow from operations.
Management believes that EBITDA and Adjusted EBITDA enable
investors to better understand and evaluate our ongoing operating
results and allow for greater transparency in reviewing our overall
financial, operational and economic performance. EBITDA and
Adjusted EBITDA presented by other companies may not be comparable
to our presentation, since each company may define these terms
differently. Below is a reconciliation of net income to EBITDA and
EBITDA to Adjusted EBITDA for the three months ended March 31, 2015 and 2014:
|
|
|
|
|
|
|
|
Three Months
Ended March
31,
|
|
2015
|
|
2014
|
|
(in
millions)
|
Net income
attributable to CVR Energy stockholders
|
$
|
54.9
|
|
$
|
126.7
|
Add:
|
|
|
|
Interest expense and other financing costs, net of interest
income
|
12.5
|
|
9.9
|
Income tax
expense
|
24.0
|
|
69.4
|
Depreciation and
amortization
|
42.0
|
|
37.3
|
EBITDA adjustments included in noncontrolling interest
|
(19.4)
|
|
(15.0)
|
EBITDA
|
114.0
|
|
228.3
|
Add:
|
|
|
|
FIFO
impacts, (favorable) unfavorable
|
24.5
|
|
(21.6)
|
Share-based compensation
|
4.0
|
|
4.1
|
(Gain)
loss on derivatives, net
|
51.4
|
|
(109.4)
|
Current
period settlement on derivative contracts (1)
|
(6.3)
|
|
21.1
|
Adjustments included in noncontrolling interest
|
(23.9)
|
|
31.6
|
Adjusted
EBITDA
|
$
|
163.7
|
|
$
|
154.1
|
Petroleum and Nitrogen Fertilizer EBITDA and Adjusted EBITDA.
EBITDA by operating segment 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 by operating segment represents EBITDA by operating
segment adjusted for (i) FIFO impacts (favorable) unfavorable; (ii)
share-based compensation, non-cash; (iii) loss of extinguishment of
debt; (iv) major scheduled turnaround expenses; (v) (gain) loss on
derivatives, net; and (vi) 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 net income 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 to EBITDA and
EBITDA to Adjusted EBITDA for the Petroleum and Nitrogen Fertilizer
segments for the three months ended March
31, 2015 and 2014:
|
Three Months
Ended
March 31,
|
|
2015
|
|
2014
|
|
(in
millions)
|
Petroleum:
|
|
|
|
Petroleum net
income
|
$
|
46.7
|
|
$
|
265.4
|
Add:
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
11.2
|
|
8.6
|
Income tax
expense
|
—
|
|
—
|
Depreciation and
amortization
|
34.0
|
|
29.5
|
Petroleum
EBITDA
|
91.9
|
|
303.5
|
Add:
|
|
|
|
FIFO impacts
(favorable), unfavorable
|
24.5
|
|
(21.6)
|
Share-based
compensation, non-cash
|
0.2
|
|
0.5
|
(Gain) loss on
derivatives, net
|
51.4
|
|
(109.4)
|
Current period
settlements on derivative contracts (1)
|
(6.3)
|
|
21.1
|
Adjusted Petroleum
EBITDA
|
$
|
161.7
|
|
$
|
194.1
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2015
|
|
2014
|
|
(in
millions)
|
Nitrogen
Fertilizer:
|
|
|
|
Nitrogen Fertilizer
net income
|
$
|
29.8
|
|
$
|
21.5
|
Add:
|
|
|
|
Interest expense and
other financing costs, net
|
1.7
|
|
1.6
|
Income tax
expense
|
—
|
|
—
|
Depreciation and
amortization
|
6.8
|
|
6.7
|
Nitrogen
Fertilizer EBITDA
|
38.3
|
|
29.8
|
Add:
|
|
|
|
Share-based
compensation, non-cash
|
0.1
|
|
0.1
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
38.4
|
|
$
|
29.9
|
|
|
(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 March 31,
2015. The positions are primarily in the form of crack
spread swap agreements with financial counterparties, wherein the
Petroleum segment has locked in differentials at the fixed prices
noted below. As of March 31, 2015,
the open commodity swap positions below were comprised of
approximately 65.1% for distillate crack swaps and 34.9% for
gasoline crack swaps.
|
|
|
|
|
|
|
|
Commodity
Swaps
|
|
Barrels
|
|
Fixed
Price(1)
|
Second Quarter
2015
|
|
8,850,000
|
|
|
$
|
20.67
|
|
Third Quarter
2015
|
|
3,200,000
|
|
|
22.09
|
|
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
|
|
14,960,000
|
|
|
$
|
22.63
|
|
|
|
(1) Weighted-average
price of all positions for period indicated.
|
|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/cvr-energy-reports-2015-first-quarter-results-and-announces-cash-dividend-of-50-cents-300074974.html
SOURCE CVR Energy, Inc.