CVR Energy Reports Second Quarter 2024 Results
CVR Energy (NYSE: CVI) reported second quarter 2024 results with net income of $21 million, or 21 cents per diluted share, and EBITDA of $103 million. Adjusted earnings per share were 9 cents, with adjusted EBITDA of $87 million. The company announced a cash dividend of 50 cents per share.
The Petroleum Segment saw a decrease in performance, with net income of $18 million and EBITDA of $56 million. Combined total throughput was 186,000 barrels per day. The Nitrogen Fertilizer Segment reported net income of $26 million and EBITDA of $54 million.
CVR Partners declared a cash distribution of $1.90 per common unit. The company's renewable diesel unit had total vegetable oil throughputs of 11.7 million gallons, down from 17.8 million gallons in Q2 2023.
CVR Energy (NYSE: CVI) ha riportato i risultati del secondo trimestre 2024 con un reddito netto di 21 milioni di dollari, ovvero 21 centesimi per azione diluita, e un EBITDA di 103 milioni di dollari. L'utile per azione rettificato è stato di 9 centesimi, con un EBITDA rettificato di 87 milioni. L'azienda ha annunciato un dividendo in contante di 50 centesimi per azione.
Il segmento della Petrolio ha registrato un calo delle prestazioni, con un reddito netto di 18 milioni di dollari e un EBITDA di 56 milioni di dollari. Il throughput totale combinato è stato di 186.000 barili al giorno. Il segmento dei Fertilizzanti Azotati ha riportato un reddito netto di 26 milioni di dollari e un EBITDA di 54 milioni di dollari.
CVR Partners ha dichiarato una distribuzione in contante di 1,90 dollari per unità comune. L'unità di biodiesel rinnovabile dell'azienda ha avuto un throughput totale di olio vegetale di 11,7 milioni di galloni, in calo rispetto ai 17,8 milioni di galloni nel secondo trimestre del 2023.
CVR Energy (NYSE: CVI) reportó los resultados del segundo trimestre de 2024 con un ingreso neto de 21 millones de dólares, o 21 centavos por acción diluida, y un EBITDA de 103 millones de dólares. Las ganancias ajustadas por acción fueron de 9 centavos, con un EBITDA ajustado de 87 millones. La compañía anunció un dividendo en efectivo de 50 centavos por acción.
El segmento de Petróleo experimentó una disminución en el rendimiento, con un ingreso neto de 18 millones de dólares y un EBITDA de 56 millones de dólares. El total combinado de procesamiento fue de 186,000 barriles por día. El segmento de Fertilizantes de Nitrógeno reportó un ingreso neto de 26 millones de dólares y un EBITDA de 54 millones de dólares.
CVR Partners declaró una distribución en efectivo de 1.90 dólares por unidad común. La unidad de diesel renovable de la compañía tuvo un procesamiento total de aceite vegetal de 11.7 millones de galones, disminuyendo de 17.8 millones de galones en el segundo trimestre de 2023.
CVR 에너지 (NYSE: CVI)는 2024년 2분기 실적을 보고하며, 순이익이 2100만 달러, 희석 주당 21센트, EBITDA가 1억 300만 달러라고 발표했습니다. 조정 주당 순이익은 9센트였으며, 조정 EBITDA는 8700만 달러였습니다. 회사는 주당 50센트의 현금 배당금을 발표했습니다.
석유 부문은 성과 감소를 경험했으며, 순이익은 1800만 달러, EBITDA는 5600만 달러였습니다. 총 처리량은 하루 186,000배럴이었습니다. 질소 비료 부문은 2600만 달러의 순이익과 5400만 달러의 EBITDA를 보고했습니다.
CVR 파트너스는 공통 단위당 1.90달러의 현금 분배를 선언했습니다. 회사의 재생 가능 디젤 사업부는 1170만 갤런의 총 식물성 기름 처리량을 기록했으며, 이는 2023년 2분기의 1780만 갤런에서 감소한 수치입니다.
CVR Energy (NYSE: CVI) a rapporté des résultats pour le deuxième trimestre 2024 avec un revenu net de 21 millions de dollars, soit 21 cents par action diluée, et un EBITDA de 103 millions de dollars. Le bénéfice par action ajusté était de 9 cents, avec un EBITDA ajusté de 87 millions de dollars. L'entreprise a annoncé un dividende en espèces de 50 cents par action.
Le segment Pétrole a connu une baisse de performance, avec un revenu net de 18 millions de dollars et un EBITDA de 56 millions de dollars. Le total combiné des traitements était de 186 000 barils par jour. Le segment des Engrais à Azote a déclaré un revenu net de 26 millions de dollars et un EBITDA de 54 millions de dollars.
CVR Partners a déclaré une distribution de liquidités de 1,90 dollars par unité commune. L'unité de diesel renouvelable de l'entreprise a eu un total de traitement d'huile végétale de 11,7 millions de gallons, en baisse par rapport à 17,8 millions de gallons au deuxième trimestre 2023.
CVR Energy (NYSE: CVI) berichtete über die Ergebnisse des zweiten Quartals 2024 mit einem Nettogewinn von 21 Millionen Dollar, oder 21 Cent pro verwässerter Aktie, und einem EBITDA von 103 Millionen Dollar. Der bereinigte Gewinn pro Aktie betrug 9 Cent, mit einem bereinigten EBITDA von 87 Millionen Dollar. Das Unternehmen kündigte eine Barausschüttung von 50 Cent pro Aktie an.
Der Petroleum-Sektor erlebte einen Rückgang der Leistung mit einem Nettogewinn von 18 Millionen Dollar und einem EBITDA von 56 Millionen Dollar. Die gesamte kombinierte Durchsatzmenge betrug 186.000 Barrel pro Tag. Der Sektor der Stickstoffdünger berichtete einen Nettogewinn von 26 Millionen Dollar und ein EBITDA von 54 Millionen Dollar.
CVR Partners erklärte eine Barausschüttung von 1,90 Dollar pro Stammaktie. Die erneuerbare Dieseleinheit des Unternehmens hatte einen Gesamtaufkommen von Pflanzenöl von 11,7 Millionen Gallonen, was einem Rückgang von 17,8 Millionen Gallonen im 2. Quartal 2023 entspricht.
- Announced cash dividend of 50 cents per share
- CVR Partners declared a cash distribution of $1.90 per common unit
- Combined ammonia production rate of 102 percent in the Nitrogen Fertilizer Segment
- Consolidated cash and cash equivalents increased by $5 million to $586 million
- Net income decreased to $21 million from $130 million in Q2 2023
- EBITDA decreased to $103 million from $300 million in Q2 2023
- Adjusted earnings per share decreased to 9 cents from $1.64 in Q2 2023
- Petroleum Segment net income decreased to $18 million from $194 million in Q2 2023
- Refining margin decreased to $10.94 per total throughput barrel from $18.21 in Q2 2023
- Combined total throughput decreased to 186,000 bpd from 201,000 bpd in Q2 2023
- Renewable diesel unit throughputs decreased to 11.7 million gallons from 17.8 million gallons in Q2 2023
Insights
CVR Energy's Q2 2024 results paint a mixed picture, with significant year-over-year declines in key metrics. Net income attributable to stockholders dropped to
The Petroleum Segment's performance was particularly weak, with net income plummeting to
On a positive note, the company maintained its dividend at
Investors should closely monitor the company's ability to recover from the Wynnewood refinery incident and its strategies to mitigate the impact of lower refining margins. The renewable diesel unit's reduced throughput is also a concern that warrants attention in future quarters.
The Q2 2024 results for CVR Energy reflect broader market trends in the refining and fertilizer sectors. The significant drop in refining margins, evidenced by the decrease in the Group 3 2-1-1 crack spread, suggests a challenging environment for refiners. This could be indicative of oversupply issues or reduced demand in the market.
In the fertilizer segment, the decline in average realized gate prices for UAN (down
The renewable diesel market appears to be facing headwinds, with throughput declining from 17.8 million gallons in Q2 2023 to 11.7 million gallons in Q2 2024. While some of this decrease is attributed to specific operational issues, it may also reflect broader challenges in the biofuels market.
Investors should consider these results in the context of broader energy and agricultural market trends. The company's ability to maintain its dividend despite the earnings decline suggests a focus on shareholder returns, but sustainability of this policy will depend on future market conditions and operational performance.
- Second quarter net income attributable to CVR Energy stockholders of
$21 million ; EBITDA of$103 million ; adjusted EBITDA of$87 million - Second quarter earnings per diluted share of 21 cents and adjusted earnings per diluted share of 9 cents
- Announced cash dividend of 50 cents per share
- CVR Partners announced a cash distribution of
$1.90 per common unit
SUGAR LAND, Texas, July 29, 2024 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today announced net income attributable to CVR Energy stockholders of
“CVR Energy’s 2024 second quarter earnings results were attributable to lower refining margins due to a decrease in the Group 3 2-1-1 crack spread and reduced throughputs related to a fire at the Wynnewood refinery that occurred during severe weather,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “CVR Energy was pleased to announce a second quarter 2024 cash dividend of 50 cents per share.
“CVR Partners achieved solid operating results for the second quarter of 2024 driven by a combined ammonia production rate of 102 percent,” Lamp said. “CVR Partners was pleased to declare a second quarter 2024 cash distribution of
Petroleum
The Petroleum Segment reported second quarter 2024 net income of
Combined total throughput for the second quarter of 2024 was approximately 186,000 barrels per day (bpd) compared to approximately 201,000 bpd of combined total throughput for the second quarter of 2023.
Refining margin for the second quarter of 2024 was
Nitrogen Fertilizer
The Nitrogen Fertilizer Segment reported net income of
Production at the CVR Partners, LP’s (“CVR Partners”) fertilizer facilities remained consistent compared to the second quarter of 2023, producing a combined 221,000 tons of ammonia during the second quarter of 2024, of which 69,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 337,000 tons of urea ammonia nitrate (“UAN”). During the second quarter 2023, the fertilizer facilities produced a combined 219,000 tons of ammonia, of which 70,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 339,000 tons of UAN.
For the second quarter 2024, average realized gate prices for UAN showed a reduction compared to the prior year, down 15 percent to
Corporate and Other
The Company reported an income tax benefit of
The renewable diesel unit at the Wynnewood refinery had total vegetable oil throughputs for the second quarter of 2024 of approximately 11.7 million gallons, down from 17.8 million gallons in the second quarter of 2023. The decrease was primarily due to the turnaround at the Wynnewood refinery and a catalyst change at the renewable diesel unit during the spring of 2024, in addition to downtime due to a fire at the Wynnewood refinery in April 2024.
Cash, Debt and Dividend
Consolidated cash and cash equivalents were
CVR Energy announced a second quarter 2024 cash dividend of 50 cents per share. The quarterly dividend, as declared by CVR Energy’s Board of Directors, will be paid on August 19, 2024, to stockholders of record as of August 12, 2024.
Today, CVR Partners announced that the Board of Directors of its general partner declared a second quarter 2024 cash distribution of
Second Quarter 2024 Earnings Conference Call
CVR Energy previously announced that it will host its second quarter 2024 Earnings Conference Call on Tuesday, July 30, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of Company developments, forward-looking information and other material information about business and financial matters.
The second quarter 2024 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy’s website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/dt2waput. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13747772.
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. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: continued safe and reliable operations; drivers of our results; income, sales, and earnings per share; EBITDA and Adjusted EBITDA; renewable identification numbers (“RINs”) expense; asset utilization, capture, production volume, product yield and crude oil gathering rates; cash flow generation; production; operating income and net sales; throughput, including the impact of turnarounds or fires thereon; refining margin, including contributors thereto; impact of costs to comply with the RFS and revaluation of our RFS liability; crude oil and refined product pricing impacts on inventory valuation; dividend yield; derivative gains and losses and the drivers thereof; crack spreads, including the drivers thereof; demand trends; RIN generation levels; ethanol and biodiesel blending activities; inventory levels; benefits of our corporate transformation to segregate our renewables business; access to capital and new partnerships; RIN pricing, including its impact on performance and the Company’s ability to offset the impact thereof; disruptions to operations, including impacts on results; carbon capture and decarbonization initiatives; ammonia and UAN pricing; global fertilizer industry conditions; grain prices; crop inventory levels; crop and planting levels; demand for refined products; economic downturns and demand destruction; production rates; production levels and utilization at our nitrogen fertilizer facilities; nitrogen fertilizer sales volumes, including factors driving same; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; income tax expense, including the drivers thereof; changes to pretax earnings and our effective tax rate; the availability of tax credits and incentives; production rates and operations capabilities of our renewable diesel unit, including the ability to return to hydrocarbon service; renewable feedstock throughput; purchases under share or unit repurchase programs (if any), or the termination thereof; reduction of outstanding debt, including through the redemption of outstanding notes; cash and cash equivalent levels; dividends and distributions, including the timing, payment and amount (if any) thereof; direct operating expenses, capital expenditures, depreciation and amortization and turnaround expense; cash reserves; timing of turnarounds; impacts of any pandemic; labor supply shortages, difficulties, disputes or strikes, including the impact thereof; the April 2024 fire at the Wynnewood Refinery including the impact thereof on our operations, financial position or otherwise; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “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. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) the health and economic effects of any pandemic, demand for fossil fuels and price volatility of crude oil, other feedstocks and refined products; the ability of Company to pay cash dividends and of CVR Partners to make cash distributions; potential operating hazards, including the impacts of fires at our facilities; costs of compliance with existing or new laws and regulations and potential liabilities arising therefrom; impacts of the planting season on CVR Partners; our controlling shareholder’s intention regarding ownership of our common stock and potential strategic transactions involving us or CVR Partners; general economic and business conditions; political disturbances, geopolitical instability and tensions; impacts of plant outages and weather conditions and events; and other risks. For additional 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 Securities and Exchange Commission (“SEC”) filings. These and other 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 news 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 renewables, petroleum refining and marketing business as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners.
Investors and others should note that CVR Energy may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Energy may use these channels to distribute material information about the Company and to communicate important information about the Company, corporate initiatives and other matters. Information that CVR Energy posts on its website could be deemed material; therefore, CVR Energy encourages investors, the media, its customers, business partners and others interested in the Company to review the information posted on its website.
For further information, please contact:
Investor Relations
Richard Roberts
CVR Energy, Inc.
(281) 207-3205
InvestorRelations@CVREnergy.com
Media Relations
Brandee Stephens
CVR Energy, Inc.
(281) 207-3516
MediaRelations@CVREnergy.com
Non-GAAP Measures
Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.
As a result of continuing volatile market conditions and the impacts certain non-cash items may have on the evaluation of our operations and results, the Company began disclosing the Adjusted Refining Margin non-GAAP measure, as defined below, in the second quarter of 2024. We believe the presentation of this non-GAAP measure is meaningful to compare our operating results between periods and better aligns with our peer companies. All prior periods presented have been conformed to the definition below.
The following are non-GAAP measures we present for the periods ended June 30, 2024 and 2023:
EBITDA - Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.
Petroleum EBITDA and Nitrogen Fertilizer EBITDA - Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization.
Refining Margin - The difference between our Petroleum Segment net sales and cost of materials and other.
Adjusted Refining Margin - Refining Margin adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful.
Refining Margin and Adjusted Refining Margin, per Throughput Barrel - Refining Margin and Adjusted Refining Margin divided by the total throughput barrels during the period, which is calculated as total throughput barrels per day times the number of days in the period.
Direct Operating Expenses per Throughput Barrel - Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period.
Adjusted EBITDA, Petroleum Adjusted EBITDA and Nitrogen Fertilizer Adjusted EBITDA - EBITDA, Petroleum EBITDA and Nitrogen Fertilizer EBITDA adjusted for certain significant noncash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends we deem useful.
Adjusted Earnings (Loss) per Share - Earnings (loss) per share adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends.
Free Cash Flow - Net cash provided by (used in) operating activities less capital expenditures and capitalized turnaround expenditures.
We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly traded companies in the refining and fertilizer industries, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See “Non-GAAP Reconciliations” included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.
Factors Affecting Comparability of Our Financial Results
Petroleum Segment
Our results of operations for the periods presented may not be comparable with prior periods or to our results of operations in the future due to capitalized expenditures as part of planned turnarounds. Total capitalized expenditures were
CVR Energy, Inc.
(all information in this release is unaudited)
Consolidated Statement of Operations Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 1,967 | $ | 2,236 | $ | 3,829 | $ | 4,523 | |||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of materials and other | 1,667 | 1,743 | 3,130 | 3,423 | |||||||||||
| Direct operating expenses (exclusive of depreciation and amortization) | 173 | 165 | 337 | 334 | |||||||||||
| Depreciation and amortization | 70 | 71 | 145 | 137 | |||||||||||
| Cost of sales | 1,910 | 1,979 | 3,612 | 3,894 | |||||||||||
| Selling, general and administrative expenses (exclusive of depreciation and amortization) | 28 | 32 | 63 | 71 | |||||||||||
| Depreciation and amortization | 2 | 1 | 4 | 4 | |||||||||||
| Loss on asset disposal | — | — | 1 | — | |||||||||||
| Operating income | 27 | 224 | 149 | 554 | |||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, net | (19 | ) | (16 | ) | (39 | ) | (32 | ) | |||||||
| Other income, net | 4 | 4 | 8 | 6 | |||||||||||
| Income before income tax expense | 12 | 212 | 118 | 528 | |||||||||||
| Income tax (benefit) expense | (26 | ) | 44 | (10 | ) | 101 | |||||||||
| Net income | 38 | 168 | 128 | 427 | |||||||||||
| Less: Net income attributable to noncontrolling interest | 17 | 38 | 25 | 102 | |||||||||||
| Net income attributable to CVR Energy stockholders | $ | 21 | $ | 130 | $ | 103 | $ | 325 | |||||||
| Basic and diluted earnings per share | $ | 0.21 | $ | 1.29 | $ | 1.02 | $ | 3.23 | |||||||
| Dividends declared per share | $ | 0.50 | $ | 0.50 | $ | 1.00 | $ | 1.00 | |||||||
| Adjusted earnings per share | $ | 0.09 | $ | 1.64 | $ | 0.12 | $ | 3.08 | |||||||
| EBITDA* | $ | 103 | $ | 300 | $ | 306 | $ | 701 | |||||||
| Adjusted EBITDA * | $ | 87 | $ | 347 | $ | 186 | $ | 680 | |||||||
| Weighted-average common shares outstanding - basic and diluted | 100.5 | 100.5 | 100.5 | 100.5 | |||||||||||
_________________________________
* See “Non-GAAP Reconciliations” section below.
Selected Balance Sheet Data
| (in millions) | June 30, 2024 | December 31, 2023 | |||
| Cash and cash equivalents | $ | 586 | $ | 581 | |
| Working capital | 470 | 497 | |||
| Total assets | 4,003 | 4,707 | |||
| Total debt and finance lease obligations, including current portion | 1,584 | 2,185 | |||
| Total liabilities | 2,962 | 3,669 | |||
| Total CVR stockholders’ equity | 849 | 847 | |||
Selected Cash Flow Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash (used in) provided by: | |||||||||||||||
| Operating activities | $ | 81 | $ | 367 | $ | 258 | $ | 614 | |||||||
| Investing activities | (74 | ) | (96 | ) | (129 | ) | (130 | ) | |||||||
| Financing activities | (65 | ) | (121 | ) | (729 | ) | (243 | ) | |||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | $ | (58 | ) | $ | 150 | $ | (600 | ) | $ | 241 | |||||
| Free cash flow* | $ | 7 | $ | 271 | $ | 128 | $ | 484 | |||||||
_________________________________
* See “Non-GAAP Reconciliations” section below.
Selected Segment Data
| Three Months Ended June 30, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| (in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | Petroleum | Nitrogen Fertilizer | Consolidated | |||||||||||
| Net sales | $ | 1,795 | $ | 133 | $ | 1,967 | $ | 2,000 | $ | 183 | $ | 2,236 | |||||
| Operating income | 10 | 34 | 27 | 171 | 67 | 224 | |||||||||||
| Net income | 18 | 26 | 38 | 194 | 60 | 168 | |||||||||||
| EBITDA* | 56 | 54 | 103 | 220 | 87 | 300 | |||||||||||
| Capital expenditures (1) | |||||||||||||||||
| Maintenance capital expenditures | $ | 22 | $ | 4 | $ | 27 | $ | 20 | $ | 5 | $ | 27 | |||||
| Growth capital expenditures | 11 | 1 | 14 | 2 | 1 | 21 | |||||||||||
| Total capital expenditures | $ | 33 | $ | 5 | $ | 41 | $ | 22 | $ | 6 | $ | 48 | |||||
| Six Months Ended June 30, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| (in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | Petroleum | Nitrogen Fertilizer | Consolidated | |||||||||||
| Net sales | $ | 3,517 | $ | 261 | $ | 3,829 | $ | 3,993 | $ | 409 | $ | 4,523 | |||||
| Operating income | 128 | 54 | 149 | 408 | 176 | 554 | |||||||||||
| Net income | 145 | 39 | 128 | 453 | 162 | 427 | |||||||||||
| EBITDA* | 227 | 93 | 306 | 505 | 211 | 701 | |||||||||||
| Capital expenditures (1) | |||||||||||||||||
| Maintenance capital expenditures | $ | 44 | $ | 9 | $ | 57 | $ | 50 | $ | 9 | $ | 62 | |||||
| Growth capital expenditures | 25 | 1 | 35 | 3 | 1 | 35 | |||||||||||
| Total capital expenditures | $ | 69 | $ | 10 | $ | 92 | $ | 53 | $ | 10 | $ | 97 | |||||
_________________________________
* See “Non-GAAP Reconciliations” section below.
(1) Capital expenditures are shown exclusive of capitalized turnaround expenditures.
Selected Balance Sheet Data
| June 30, 2024 | December 31, 2023 | ||||||||||||||||
| (in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | Petroleum | Nitrogen Fertilizer | Consolidated | |||||||||||
| Cash and cash equivalents | $ | 396 | $ | 48 | $ | 586 | $ | 375 | $ | 45 | $ | 581 | |||||
| Total assets | 2,944 | 960 | 4,003 | 2,978 | 975 | 4,707 | |||||||||||
| Total debt and finance lease obligations, including current portion (1) | 41 | 548 | 1,584 | 44 | 547 | 2,185 | |||||||||||
_________________________________
(1) Corporate total debt and finance lease obligations, including current portion consisted of
Petroleum Segment
Key Operating Metrics per Total Throughput Barrel
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Refining margin * | $ | 10.94 | $ | 18.21 | $ | 13.68 | $ | 20.68 | |||
| Adjusted refining margin * | 9.81 | 20.27 | 10.15 | 19.64 | |||||||
| Direct operating expenses * | 6.94 | 5.46 | 6.34 | 5.68 | |||||||
_________________________________
* See “Non-GAAP Reconciliations” section below.
Refining Throughput and Production Data by Refinery
| Throughput Data | Three Months Ended June 30, | Six Months Ended June 30, | |||||
| (in bpd) | 2024 | 2023 | 2024 | 2023 | |||
| Coffeyville | |||||||
| Gathered crude | 86,851 | 73,547 | 74,628 | 59,527 | |||
| Other domestic | 28,625 | 41,721 | 37,275 | 46,572 | |||
| Canadian | 9,518 | 84 | 9,525 | 2,091 | |||
| Condensate | 5,079 | 6,598 | 6,390 | 7,879 | |||
| Other crude oil | 551 | — | 275 | — | |||
| Other feedstocks and blendstocks | 10,773 | 12,124 | 11,671 | 12,678 | |||
| Wynnewood | |||||||
| Gathered crude | 34,190 | 51,142 | 38,624 | 50,485 | |||
| Other domestic | 2,421 | 1,002 | 1,210 | 2,471 | |||
| Condensate | 5,965 | 11,992 | 8,114 | 13,950 | |||
| Other feedstocks and blendstocks | 2,235 | 2,865 | 3,287 | 3,144 | |||
| Total throughput | 186,208 | 201,075 | 190,999 | 198,797 | |||
| Production Data | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
| (in bpd) | 2024 | 2023 | 2024 | 2023 | |||||||
| Coffeyville | |||||||||||
| Gasoline | 71,515 | 68,008 | 72,119 | 66,258 | |||||||
| Distillate | 57,710 | 57,996 | 56,858 | 54,100 | |||||||
| Other liquid products | 7,015 | 3,816 | 5,784 | 4,461 | |||||||
| Solids | 4,990 | 3,916 | 4,985 | 3,632 | |||||||
| Wynnewood | |||||||||||
| Gasoline | 25,672 | 36,017 | 28,828 | 37,991 | |||||||
| Distillate | 16,053 | 23,604 | 17,610 | 24,424 | |||||||
| Other liquid products | 2,349 | 6,714 | 3,956 | 6,499 | |||||||
| Solids | 6 | 10 | 6 | 10 | |||||||
| Total production | 185,310 | 200,081 | 190,146 | 197,375 | |||||||
| Light product yield (as % of crude throughput) (1) | 98.7 | % | 99.8 | % | 99.6 | % | 99.9 | % | |||
| Liquid volume yield (as % of total throughput) (2) | 96.8 | % | 97.6 | % | 96.9 | % | 97.5 | % | |||
| Distillate yield (as % of crude throughput) (3) | 42.6 | % | 43.9 | % | 42.3 | % | 42.9 | % | |||
_________________________________
(1) Total Gasoline and Distillate divided by total Gathered crude, Other domestic, Canadian, and Condensate throughput (collectively, “Total Crude Throughput”).
(2) Total Gasoline, Distillate, and Other liquid products divided by total throughput.
(3) Total Distillate divided by Total Crude Throughput.
Key Market Indicators
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| West Texas Intermediate (WTI) NYMEX | $ | 80.63 | $ | 73.51 | $ | 78.81 | $ | 74.76 | |||||||
| Crude Oil Differentials to WTI: | |||||||||||||||
| Brent | 4.40 | 4.22 | 4.60 | 5.18 | |||||||||||
| WCS (heavy sour) | (12.53 | ) | (13.36 | ) | (14.66 | ) | (16.54 | ) | |||||||
| Condensate | (0.66 | ) | (0.43 | ) | (0.76 | ) | (0.15 | ) | |||||||
| Midland Cushing | 1.08 | 0.93 | 1.31 | 1.22 | |||||||||||
| NYMEX Crack Spreads: | |||||||||||||||
| Gasoline | 27.48 | 35.64 | 25.07 | 32.72 | |||||||||||
| Heating Oil | 24.67 | 28.91 | 30.62 | 37.92 | |||||||||||
| NYMEX 2-1-1 Crack Spread | 26.07 | 32.27 | 27.85 | 35.32 | |||||||||||
| PADD II Group 3 Product Basis: | |||||||||||||||
| Gasoline | (10.61 | ) | (4.24 | ) | (10.33 | ) | (4.01 | ) | |||||||
| Ultra-Low Sulfur Diesel | (3.89 | ) | 3.76 | (7.04 | ) | (0.44 | ) | ||||||||
| PADD II Group 3 Product Crack Spread: | |||||||||||||||
| Gasoline | 16.87 | 31.40 | 14.74 | 28.71 | |||||||||||
| Ultra-Low Sulfur Diesel | 20.78 | 32.66 | 23.59 | 37.48 | |||||||||||
| PADD II Group 3 2-1-1 | 18.83 | 32.03 | 19.17 | 33.10 | |||||||||||
Nitrogen Fertilizer Segment
Ammonia Utilization Rates (1)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (percent of capacity utilization) | 2024 | 2023 | 2024 | 2023 | |||||||
| Consolidated | 102 | % | 100 | % | 96 | % | 103 | % | |||
_________________________________
(1) Reflects our ammonia utilization rates on a consolidated basis. Utilization is an important measure used by management to assess operational output at each of CVR Partners’ facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three and six months ended June 30, 2024 and 2023 and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate.
Sales and Production Data
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Consolidated sales volumes (thousand tons): | |||||||||||
| Ammonia | 43 | 79 | 113 | 121 | |||||||
| UAN | 330 | 329 | 614 | 688 | |||||||
| Consolidated product pricing at gate (dollars per ton):(1) | |||||||||||
| Ammonia | $ | 520 | $ | 707 | $ | 525 | $ | 770 | |||
| UAN | 268 | 316 | 268 | 390 | |||||||
| Consolidated production volume (thousand tons): | |||||||||||
| Ammonia (gross produced) (2) | 221 | 219 | 414 | 442 | |||||||
| Ammonia (net available for sale) (2) | 69 | 70 | 130 | 132 | |||||||
| UAN | 337 | 339 | 643 | 705 | |||||||
| Feedstock: | |||||||||||
| Petroleum coke used in production (thousands of tons) | 133 | 124 | 261 | 255 | |||||||
| Petroleum coke used in production (dollars per ton) | $ | 62.96 | $ | 73.91 | $ | 69.21 | $ | 75.62 | |||
| Natural gas used in production (thousands of MMBtus) (3) | 2,213 | 2,194 | 4,361 | 4,296 | |||||||
| Natural gas used in production (dollars per MMBtu) (3) | $ | 1.93 | $ | 2.35 | $ | 2.51 | $ | 4.02 | |||
| Natural gas in cost of materials and other (thousands of MMBtus) (3) | 1,855 | 2,403 | 3,620 | 3,718 | |||||||
| Natural gas in cost of materials and other (dollars per MMBtu) (3) | $ | 1.85 | $ | 4.11 | $ | 2.65 | $ | 5.41 | |||
_________________________________
(1) Product pricing at gate represents 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.
(2) Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
(3) The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.
Key Market Indicators
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Ammonia — Southern plains (dollars per ton) | $ | 500 | $ | 435 | $ | 520 | $ | 586 | |||
| Ammonia — Corn belt (dollars per ton) | 547 | 472 | 560 | 682 | |||||||
| UAN — Corn belt (dollars per ton) | 275 | 298 | 276 | 335 | |||||||
| Natural gas NYMEX (dollars per MMBtu) | $ | 2.32 | $ | 2.33 | $ | 2.21 | $ | 2.54 | |||
Q3 2024 Outlook
The table below summarizes our outlook for certain operational statistics and financial information for our Nitrogen Fertilizer Segment for the third quarter of 2024. See “Forward-Looking Statements” above.
| Q3 2024 | |||||||
| Low | High | ||||||
| Petroleum | |||||||
| Total throughput (bpd) | 200,000 | 215,000 | |||||
| Direct operating expenses (in millions) (1) | $ | 95 | $ | 105 | |||
| Turnaround (2) | 6 | 8 | |||||
| Renewables (3) | |||||||
| Total throughput (in millions of gallons) | 17 | 22 | |||||
| Direct operating expenses (in millions) (1) | $ | 8 | $ | 11 | |||
| Nitrogen Fertilizer | |||||||
| Ammonia utilization rates | |||||||
| Consolidated | 95 | % | 100 | % | |||
| Coffeyville Fertilizer Facility | 95 | % | 100 | % | |||
| East Dubuque Fertilizer Facility | 95 | % | 100 | % | |||
| Direct operating expenses (in millions) (1) | $ | 53 | $ | 58 | |||
| Capital Expenditures (in millions) (2) | |||||||
| Petroleum | $ | 35 | $ | 40 | |||
| Renewables (3) | 2 | 4 | |||||
| Nitrogen Fertilizer | 10 | 15 | |||||
| Other | 3 | 5 | |||||
| Total capital expenditures | $ | 50 | $ | 64 | |||
_________________________________
(1) Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and inventory valuation impacts.
(2) Turnaround and capital expenditures are disclosed on an accrual basis.
(3) Renewables reflects spending on the Wynnewood renewable diesel unit project. As of June 30, 2024, Renewables does not meet the definition of a reportable segment as defined under Accounting Standards Codification 280.
Non-GAAP Reconciliations
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Net income | $ | 38 | $ | 168 | $ | 128 | $ | 427 | ||||||
| Interest expense, net | 19 | 16 | 39 | 32 | ||||||||||
| Income tax (benefit) expense | (26 | ) | 44 | (10 | ) | 101 | ||||||||
| Depreciation and amortization | 72 | 72 | 149 | 141 | ||||||||||
| EBITDA | 103 | 300 | 306 | 701 | ||||||||||
| Adjustments: | ||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | — | 2 | (91 | ) | (54 | ) | ||||||||
| Unrealized (gain) loss on derivatives, net | (17 | ) | 19 | 7 | (13 | ) | ||||||||
| Inventory valuation impacts, unfavorable (favorable) | 1 | 26 | (36 | ) | 46 | |||||||||
| Adjusted EBITDA | $ | 87 | $ | 347 | $ | 186 | $ | 680 | ||||||
Reconciliation of Basic and Diluted Earnings per Share to Adjusted Earnings per Share
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Basic and diluted earnings per share | $ | 0.21 | $ | 1.29 | $ | 1.02 | $ | 3.23 | ||||||
| Adjustments: (1) | ||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | — | 0.01 | (0.68 | ) | (0.40 | ) | ||||||||
| Unrealized (gain) loss on derivatives, net | (0.13 | ) | 0.14 | 0.05 | (0.10 | ) | ||||||||
| Inventory valuation impacts, unfavorable (favorable) | 0.01 | 0.20 | (0.27 | ) | 0.35 | |||||||||
| Adjusted earnings per share | $ | 0.09 | $ | 1.64 | $ | 0.12 | $ | 3.08 | ||||||
_________________________________
(1) Amounts are shown after-tax, using the Company’s marginal tax rate, and are presented on a per share basis using the weighted average shares outstanding for each period.
Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 81 | $ | 367 | $ | 258 | $ | 614 | |||||||
| Less: | |||||||||||||||
| Capital expenditures | (43 | ) | (55 | ) | (90 | ) | (100 | ) | |||||||
| Capitalized turnaround expenditures | (32 | ) | (42 | ) | (44 | ) | (50 | ) | |||||||
| Return of equity method investment | 1 | 1 | 4 | 20 | |||||||||||
| Free cash flow | $ | 7 | $ | 271 | $ | 128 | $ | 484 | |||||||
Reconciliation of Petroleum Segment Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Petroleum net income | $ | 18 | $ | 194 | $ | 145 | $ | 453 | |||||||
| Interest income, net | (5 | ) | (19 | ) | (10 | ) | (39 | ) | |||||||
| Depreciation and amortization | 43 | 45 | 92 | 91 | |||||||||||
| Petroleum EBITDA | 56 | 220 | 227 | 505 | |||||||||||
| Adjustments: | |||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | — | 2 | (91 | ) | (54 | ) | |||||||||
| Unrealized (gain) loss on derivatives, net | (17 | ) | 15 | 7 | (16 | ) | |||||||||
| Inventory valuation impacts, (favorable) unfavorable (1) | (2 | ) | 21 | (39 | ) | 33 | |||||||||
| Petroleum Adjusted EBITDA | $ | 37 | $ | 258 | $ | 104 | $ | 468 | |||||||
Reconciliation of Petroleum Segment Gross Profit to Refining Margin and Adjusted Refining Margin
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 1,795 | $ | 2,000 | $ | 3,517 | $ | 3,993 | |||||||
| Less: | |||||||||||||||
| Cost of materials and other | (1,610 | ) | (1,667 | ) | (3,041 | ) | (3,249 | ) | |||||||
| Direct operating expenses (exclusive of depreciation and amortization) | (118 | ) | (100 | ) | (221 | ) | (204 | ) | |||||||
| Depreciation and amortization | (43 | ) | (45 | ) | (92 | ) | (91 | ) | |||||||
| Gross profit | 24 | 188 | 163 | 449 | |||||||||||
| Add: | |||||||||||||||
| Direct operating expenses (exclusive of depreciation and amortization) | 118 | 100 | 221 | 204 | |||||||||||
| Depreciation and amortization | 43 | 45 | 92 | 91 | |||||||||||
| Refining margin | 185 | 333 | 476 | 744 | |||||||||||
| Adjustments: | |||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | — | 2 | (91 | ) | (54 | ) | |||||||||
| Unrealized (gain) loss on derivatives, net | (17 | ) | 15 | 7 | (16 | ) | |||||||||
| Inventory valuation impacts, (favorable) unfavorable (1) | (2 | ) | 21 | (39 | ) | 33 | |||||||||
| Adjusted refining margin | $ | 166 | $ | 371 | $ | 353 | $ | 707 | |||||||
_________________________________
(1) The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period.
Reconciliation of Petroleum Segment Total Throughput Barrels and Metrics per Total Throughput Barrel
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Total throughput barrels per day | 186,208 | 201,075 | 190,999 | 198,797 | |||||||
| Days in the period | 91 | 91 | 182 | 181 | |||||||
| Total throughput barrels | 16,944,862 | 18,297,814 | 34,761,961 | 35,982,294 | |||||||
| (in millions, except per total throughput barrel) | |||||||||||
| Refining margin | $ | 185 | $ | 333 | $ | 476 | $ | 744 | |||
| Refining margin per total throughput barrel | $ | 10.94 | $ | 18.21 | $ | 13.68 | $ | 20.68 | |||
| Adjusted refining margin | $ | 166 | $ | 371 | $ | 353 | $ | 707 | |||
| Adjusted refining margin per total throughput barrel | $ | 9.81 | $ | 20.27 | $ | 10.15 | $ | 19.64 | |||
| Direct operating expenses (exclusive of depreciation and amortization) | $ | 118 | $ | 100 | $ | 221 | $ | 204 | |||
| Direct operating expenses per total throughput barrel | $ | 6.94 | $ | 5.46 | $ | 6.34 | $ | 5.68 | |||
Reconciliation of Nitrogen Fertilizer Segment Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Nitrogen Fertilizer net income | $ | 26 | $ | 60 | $ | 39 | $ | 162 | |||
| Interest expense, net | 8 | 7 | 15 | 14 | |||||||
| Depreciation and amortization | 20 | 20 | 39 | 35 | |||||||
| Nitrogen Fertilizer EBITDA and Adjusted EBITDA | $ | 54 | $ | 87 | $ | 93 | $ | 211 | |||
FAQ
What was CVR Energy's net income for Q2 2024?
How much was CVR Energy's Q2 2024 cash dividend?
What was the cash distribution announced by CVR Partners for Q2 2024?
How did CVR Energy's Petroleum Segment perform in Q2 2024 compared to Q2 2023?
What was the combined total throughput for CVR Energy in Q2 2024?
