CVR Energy Reports Third Quarter 2024 Results
CVR Energy reported a third quarter 2024 net loss of $124 million ($1.24 per diluted share) and EBITDA loss of $35 million, compared to net income of $353 million in Q3 2023. The Petroleum Segment saw reduced throughput of 189,000 bpd and a refining margin of $44 million. The Nitrogen Fertilizer Segment reported net income of $4 million with combined ammonia production of 212,000 tons. The company suspended its quarterly dividend due to concerns about margin environment and planned turnaround at Coffeyville refinery. CVR Partners declared a cash distribution of $1.19 per common unit.
CVR Energy ha riportato una perdita netta di 124 milioni di dollari ($1,24 per azione diluita) nel terzo trimestre del 2024 e una perdita EBITDA di 35 milioni di dollari, rispetto a un utile netto di 353 milioni di dollari nel Q3 2023. Il Settore Petrolifero ha registrato un throughput ridotto di 189.000 bpd e un margine di raffinazione di 44 milioni di dollari. Il Settore Fertilizzanti all'Azoto ha riportato un utile netto di 4 milioni di dollari con una produzione combinata di ammoniaca di 212.000 tonnellate. L'azienda ha sospeso il suo dividendo trimestrale a causa di preoccupazioni relative all'ambiente dei margini e al piano di turn-around della raffineria di Coffeyville. CVR Partners ha dichiarato un'assegnazione di cassa di $1,19 per unità comune.
CVR Energy reportó una pérdida neta en el tercer trimestre de 2024 de 124 millones de dólares ($1.24 por acción diluida) y una pérdida de EBITDA de 35 millones de dólares, en comparación con una ganancia neta de 353 millones de dólares en el Q3 de 2023. El Segmento de Petróleo experimentó una reducción en el procesamiento de 189,000 bpd y un margen de refinación de 44 millones de dólares. El Segmento de Fertilizantes de Nitrógeno reportó una ganancia neta de 4 millones de dólares con una producción combinada de amoníaco de 212,000 toneladas. La empresa suspendió su dividendo trimestral debido a preocupaciones sobre el entorno de márgenes y el plan de mantenimiento en la refinería de Coffeyville. CVR Partners declaró una distribución en efectivo de $1.19 por unidad común.
CVR Energy는 2024년 3분기에 순손실 1억 2,400만 달러($1.24 주당 희석 손실)와 EBITDA 손실 3,500만 달러를 보고했으며, 이는 2023년 3분기 순이익 3억 5,300만 달러에 비해 감소한 수치입니다. 석유 부문에서는 189,000 bpd의 처리량 감소와 4,400만 달러의 정제 마진을 보였습니다. 질소 비료 부문은 2만 1,200톤의 조합 암모니아 생산으로 400만 달러의 순이익을 기록했습니다. 회사는 마진 환경에 대한 우려와 Coffeyville 정유소의 계획 중단으로 인해 분기 배당금을 중단했습니다. CVR Partners는 보통주당 현금 배당금으로 $1.19를 선언했습니다.
CVR Energy a rapporté une perte nette de 124 millions de dollars (1,24 $ par action diluée) au troisième trimestre 2024 et une perte EBITDA de 35 millions de dollars, contre un bénéfice net de 353 millions de dollars au T3 2023. Le secteur pétrolier a connu un débit réduit de 189 000 bpd et une marge de raffinage de 44 millions de dollars. Le secteur des engrais azotés a enregistré un bénéfice net de 4 millions de dollars avec une production combinée d'ammoniac de 212 000 tonnes. L'entreprise a suspendu son dividende trimestriel en raison de préoccupations concernant l'environnement de marge et le projet d'arrêt de la raffinerie de Coffeyville. CVR Partners a déclaré une distribution en espèces de 1,19 $ par unité commune.
CVR Energy meldete im dritten Quartal 2024 einen Nettoverlust von 124 Millionen Dollar (1,24 Dollar pro verwässerter Aktie) sowie einen EBITDA-Verlust von 35 Millionen Dollar, verglichen mit einem Nettogewinn von 353 Millionen Dollar im Q3 2023. Das Ölsegment verzeichnete eine reduzierte Durchsatzmenge von 189.000 bpd und eine Raffineriemarge von 44 Millionen Dollar. Das Düngersegment mit Stickstoff berichtete von einem Nettogewinn von 4 Millionen Dollar bei einer Gesamtproduktion von 212.000 Tonnen Ammoniak. Das Unternehmen setzte seine vierteljährliche Dividende aus, da Bedenken hinsichtlich des Margenumfelds und einer geplanten Umstellung in der Raffinerie Coffeyville bestehen. CVR Partners erklärte eine Barausschüttung von 1,19 Dollar pro Stammaktie.
- Nitrogen Fertilizer Segment remained profitable with $4 million net income
- UAN prices improved 3% to $229 per ton year-over-year
- Ammonia prices increased 9% to $399 per ton compared to prior year
- High ammonia production rate of 97%
- Net loss of $124 million compared to $353 million profit in Q3 2023
- Reduced refining throughput to 189,000 bpd from 212,000 bpd year-over-year
- Refining margin decreased to $2.53 per barrel from $31.05 year-over-year
- Suspension of quarterly dividend
- Renewable diesel throughput declined to 19.6M gallons from 23.8M year-over-year
Insights
The Q3 2024 results reveal significant challenges for CVR Energy, with a concerning shift from
The operational disruptions from external power outages combined with declining crack spreads signal broader industry challenges. The
- Third quarter net loss attributable to CVR Energy stockholders of
$124 million ; EBITDA loss of$35 million ; adjusted EBITDA of$63 million - Third quarter loss per diluted share of
$1.24 and adjusted loss per diluted share of 50 cents - CVR Energy will not pay a cash dividend for the third quarter of 2024
- CVR Partners announced a cash distribution of
$1.19 per common unit
SUGAR LAND, Texas, Oct. 28, 2024 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today announced a net loss attributable to CVR Energy stockholders of
“CVR Energy’s 2024 third quarter earnings results for its refining business were impacted by reduced refining throughputs attributable to unplanned downtime at both facilities partially caused by external power supply outages during the quarter,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “The Board’s decision to suspend the quarterly dividend reflects its concerns on just how long the current margin environment will persist in light of the Company’s large, planned turnaround at its Coffeyville refinery in the first quarter of 2025.
“CVR Partners achieved solid operating results for the third quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 97 percent,” Lamp said. “CVR Partners was pleased to declare a third quarter 2024 cash distribution of
Petroleum
The Petroleum Segment reported a third quarter 2024 net loss of
Combined total throughput for the third quarter of 2024 was approximately 189,000 barrels per day (bpd) compared to approximately 212,000 bpd of combined total throughput for the third quarter of 2023.
Refining margin for the third quarter of 2024 was
Nitrogen Fertilizer
The Nitrogen Fertilizer Segment reported net income of
Production at CVR Partners, LP’s (“CVR Partners”) fertilizer facilities decreased slightly compared to the third quarter of 2023, producing a combined 212,000 tons of ammonia during the third quarter of 2024, of which 61,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 321,000 tons of urea ammonia nitrate (“UAN”). During the third quarter of 2023, the fertilizer facilities produced a combined 217,000 tons of ammonia, of which 68,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 358,000 tons of UAN.
For the third quarter 2024, average realized gate prices for UAN showed an improvement compared to the prior year, up 3 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 third quarter of 2024 of approximately 19.6 million gallons, down from 23.8 million gallons in the third quarter of 2023. The decrease was primarily due to running the unit at lower utilization rates in the current period in an effort to optimize catalyst life.
Cash, Debt and Dividend
Consolidated cash and cash equivalents were
CVR Energy will not pay a cash dividend for the third quarter of 2024.
Today, CVR Partners announced that the Board of Directors of its general partner declared a third quarter 2024 cash distribution of
Third Quarter 2024 Earnings Conference Call
CVR Energy previously announced that it will host its third quarter 2024 Earnings Conference Call on Tuesday, October 29, 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 third 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/fm39ca3r. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13749245.
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, losses, and earnings per diluted 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; margin environment; impact of costs to comply with the RFS and revaluation of our RFS liability; outcome of litigation and disputes, including impact on our financial position and cash flows; 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 our results and our ability to offset the impact thereof; disruptions to operations (planned and unplanned), 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; ability to access capital markets, secure financing or sell assets; cash and cash equivalent levels; debt levels; borrowings under our credit facilities (if any); dividends and distributions, including the timing, payment and amount (if any) thereof; any suspension of our dividend, including the duration thereof; direct operating expenses, capital expenditures, depreciation and amortization; efforts to reduce or defer expenses and the amount and impact thereof; cash reserves; turnaround timing and expense, including the impacts thereof on our liquidity; 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 and cost thereof on and to 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.
Contact Information:
Investor Relations
Richard Roberts
(281) 207-3205
InvestorRelations@CVREnergy.com
Media Relations
Brandee Stephens
(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 September 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 underlying operational results of the period or that may obscure results and trends we deem useful.
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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 1,833 | $ | 2,522 | $ | 5,663 | $ | 7,045 | |||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of materials and other | 1,666 | 1,787 | 4,796 | 5,211 | |||||||||||
| Direct operating expenses (exclusive of depreciation and amortization) | 165 | 170 | 502 | 503 | |||||||||||
| Depreciation and amortization | 73 | 80 | 218 | 217 | |||||||||||
| Cost of sales | 1,904 | 2,037 | 5,516 | 5,931 | |||||||||||
| Selling, general and administrative expenses (exclusive of depreciation and amortization) | 40 | 38 | 103 | 109 | |||||||||||
| Depreciation and amortization | 2 | 1 | 6 | 4 | |||||||||||
| Loss on asset disposal | — | 1 | 1 | 1 | |||||||||||
| Operating (loss) income | (113 | ) | 445 | 37 | 1,000 | ||||||||||
| Other (expense) income: | |||||||||||||||
| Interest expense, net | (18 | ) | (11 | ) | (56 | ) | (44 | ) | |||||||
| Other income, net | 3 | 4 | 10 | 10 | |||||||||||
| (Loss) income before income tax benefit | (128 | ) | 438 | (9 | ) | 966 | |||||||||
| Income tax (benefit) expense | (6 | ) | 84 | (14 | ) | 185 | |||||||||
| Net (loss) income | (122 | ) | 354 | 5 | 781 | ||||||||||
| Less: Net income attributable to noncontrolling interest | 2 | 1 | 27 | 103 | |||||||||||
| Net (loss) income attributable to CVR Energy stockholders | $ | (124 | ) | $ | 353 | $ | (22 | ) | $ | 678 | |||||
| Basic and diluted (loss) earnings per share | $ | (1.24 | ) | $ | 3.51 | $ | (0.22 | ) | $ | 6.74 | |||||
| Dividends declared per share | $ | 0.50 | $ | 1.50 | $ | 1.50 | $ | 2.50 | |||||||
| Adjusted (loss) earnings per share | $ | (0.50 | ) | $ | 1.89 | $ | (0.38 | ) | $ | 4.98 | |||||
| EBITDA* | $ | (35 | ) | $ | 530 | $ | 271 | $ | 1,231 | ||||||
| Adjusted EBITDA * | $ | 63 | $ | 313 | $ | 249 | $ | 994 | |||||||
| Weighted-average common shares outstanding - basic and diluted | 100.5 | 100.5 | 100.5 | 100.5 | |||||||||||
_________________
* See “Non-GAAP Reconciliations” section below.
Selected Consolidated Balance Sheet Data
| (in millions) | September 30, 2024 | December 31, 2023 | |||
| Cash and cash equivalents | $ | 534 | $ | 581 | |
| Working capital | 353 | 497 | |||
| Total assets | 3,878 | 4,707 | |||
| Total debt and finance lease obligations, including current portion | 1,582 | 2,185 | |||
| Total liabilities | 3,022 | 3,669 | |||
| Total CVR stockholders’ equity | 675 | 847 | |||
Selected Consolidated Cash Flow Data
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash (used in) provided by: | |||||||||||||||
| Operating activities | $ | 48 | $ | 370 | $ | 306 | $ | 984 | |||||||
| Investing activities | (35 | ) | (51 | ) | (164 | ) | (181 | ) | |||||||
| Financing activities | (65 | ) | (181 | ) | (794 | ) | (424 | ) | |||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | $ | (52 | ) | $ | 138 | $ | (652 | ) | $ | 379 | |||||
| Free cash flow* | $ | 13 | $ | 318 | $ | 141 | $ | 802 | |||||||
_________________
* See “Non-GAAP Reconciliations” section below.
Selected Segment Data
| Three Months Ended September 30, | |||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||
| (in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | Petroleum | Nitrogen Fertilizer | Consolidated | |||||||||||||
| Net sales | $ | 1,648 | $ | 125 | $ | 1,833 | $ | 2,298 | $ | 131 | $ | 2,522 | |||||||
| Operating (loss) income | (119 | ) | 11 | (113 | ) | 431 | 8 | 445 | |||||||||||
| Net (loss) income | (110 | ) | 4 | (122 | ) | 460 | 1 | 354 | |||||||||||
| EBITDA* | (75 | ) | 36 | (35 | ) | 484 | 32 | 530 | |||||||||||
| Capital expenditures(1) | |||||||||||||||||||
| Maintenance capital expenditures | $ | 22 | $ | 7 | $ | 31 | $ | 20 | $ | 8 | $ | 30 | |||||||
| Growth capital expenditures | 6 | 3 | 8 | 6 | — | 21 | |||||||||||||
| Total capital expenditures | $ | 28 | $ | 10 | $ | 39 | $ | 26 | $ | 8 | $ | 51 | |||||||
| Nine Months Ended September 30, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| (in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | Petroleum | Nitrogen Fertilizer | Consolidated | |||||||||||
| Net sales | $ | 5,165 | $ | 386 | $ | 5,663 | $ | 6,290 | $ | 540 | $ | 7,045 | |||||
| Operating income | 9 | 65 | 37 | 838 | 184 | 1,000 | |||||||||||
| Net income | 35 | 43 | 5 | 913 | 162 | 781 | |||||||||||
| EBITDA* | 152 | 129 | 271 | 989 | 243 | 1,231 | |||||||||||
| Capital expenditures(1) | |||||||||||||||||
| Maintenance capital expenditures | $ | 66 | $ | 15 | $ | 87 | $ | 70 | $ | 17 | $ | 92 | |||||
| Growth capital expenditures | 31 | 4 | 43 | 9 | 1 | 56 | |||||||||||
| Total capital expenditures | $ | 97 | $ | 19 | $ | 130 | $ | 79 | $ | 18 | $ | 148 | |||||
_________________
* See “Non-GAAP Reconciliations” section below.
(1) Capital expenditures are shown exclusive of capitalized turnaround expenditures.
Selected Balance Sheet Data
| September 30, 2024 | December 31, 2023 | ||||||||||||||||
| (in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | Petroleum | Nitrogen Fertilizer | Consolidated | |||||||||||
| Cash and cash equivalents | $ | 275 | $ | 111 | $ | 534 | $ | 375 | $ | 45 | $ | 581 | |||||
| Total assets | 2,804 | 987 | 3,878 | 2,978 | 975 | 4,707 | |||||||||||
| Total debt and finance lease obligations, including current portion(1) | 39 | 548 | 1,582 | 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 September 30, | Nine Months Ended September 30, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Refining margin * | $ | 2.53 | $ | 31.05 | $ | 9.96 | $ | 24.33 | |||
| Adjusted refining margin * | 8.23 | 20.73 | 9.51 | 20.02 | |||||||
| Direct operating expenses * | 5.72 | 5.39 | 6.14 | 5.58 | |||||||
_________________
* See “Non-GAAP Reconciliations” section below.
Refining Throughput and Production Data by Refinery
| Throughput Data | Three Months Ended September 30, | Nine Months Ended September 30, | |||||
| (in bpd) | 2024 | 2023 | 2024 | 2023 | |||
| Coffeyville | |||||||
| Gathered crude | 66,781 | 68,176 | 71,993 | 62,442 | |||
| Other domestic | 35,111 | 49,303 | 36,549 | 47,491 | |||
| Canadian | 6,243 | 2,731 | 8,423 | 2,307 | |||
| Condensate | — | 7,401 | 4,244 | 7,718 | |||
| Other crude oil | 3,876 | — | 1,484 | — | |||
| Other feedstocks and blendstocks | 11,691 | 12,260 | 11,678 | 12,538 | |||
| Wynnewood | |||||||
| Gathered crude | 51,821 | 53,554 | 43,055 | 51,519 | |||
| Other domestic | 1,504 | 543 | 1,309 | 1,822 | |||
| Condensate | 9,663 | 15,780 | 8,634 | 14,567 | |||
| Other feedstocks and blendstocks | 2,604 | 2,672 | 3,058 | 2,984 | |||
| Total throughput | 189,294 | 212,420 | 190,427 | 203,388 | |||
| Production Data | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
| (in bpd) | 2024 | 2023 | 2024 | 2023 | |||||||
| Coffeyville | |||||||||||
| Gasoline | 62,031 | 69,833 | 68,732 | 67,463 | |||||||
| Distillate | 52,030 | 60,661 | 55,237 | 56,311 | |||||||
| Other liquid products | 5,169 | 4,463 | 5,578 | 4,461 | |||||||
| Solids | 4,734 | 4,416 | 4,901 | 3,896 | |||||||
| Wynnewood | |||||||||||
| Gasoline | 34,539 | 36,997 | 30,746 | 37,656 | |||||||
| Distillate | 23,902 | 25,615 | 19,722 | 24,825 | |||||||
| Other liquid products | 5,874 | 9,038 | 4,600 | 7,355 | |||||||
| Solids | 11 | 9 | 8 | 10 | |||||||
| Total production | 188,290 | 211,032 | 189,524 | 201,977 | |||||||
| Light product yield (as % of crude throughput)(1) | 98.6 | % | 97.8 | % | 99.3 | % | 99.1 | % | |||
| Liquid volume yield (as % of total throughput)(2) | 97.0 | % | 97.3 | % | 96.9 | % | 97.4 | % | |||
| Distillate yield (as % of crude throughput)(3) | 43.4 | % | 43.7 | % | 42.7 | % | 43.2 | % | |||
_________________
(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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| West Texas Intermediate (WTI) NYMEX | $ | 75.27 | $ | 82.22 | $ | 77.62 | $ | 77.25 | |||||||
| Crude Oil Differentials to WTI: | |||||||||||||||
| Brent | 3.43 | 3.71 | 4.20 | 4.70 | |||||||||||
| WCS (heavy sour) | (13.84 | ) | (15.91 | ) | (14.43 | ) | (16.33 | ) | |||||||
| Condensate | (0.32 | ) | (0.22 | ) | (0.60 | ) | (0.18 | ) | |||||||
| Midland Cushing | 0.78 | 1.53 | 1.14 | 1.32 | |||||||||||
| NYMEX Crack Spreads: | |||||||||||||||
| Gasoline | 19.86 | 32.40 | 23.31 | 32.61 | |||||||||||
| Heating Oil | 22.21 | 45.20 | 27.78 | 40.35 | |||||||||||
| NYMEX 2-1-1 Crack Spread | 21.03 | 38.80 | 25.54 | 36.48 | |||||||||||
| PADD II Group 3 Product Basis: | |||||||||||||||
| Gasoline | (1.77 | ) | 0.84 | (7.43 | ) | (2.39 | ) | ||||||||
| Ultra-Low Sulfur Diesel | (1.51 | ) | (0.25 | ) | (5.15 | ) | (0.38 | ) | |||||||
| PADD II Group 3 Product Crack Spread: | |||||||||||||||
| Gasoline | 18.09 | 33.24 | 15.88 | 30.22 | |||||||||||
| Ultra-Low Sulfur Diesel | 20.70 | 44.96 | 22.62 | 39.97 | |||||||||||
| PADD II Group 3 2-1-1 | 19.40 | 39.10 | 19.25 | 35.10 | |||||||||||
Nitrogen Fertilizer Segment
Ammonia Utilization Rates (1)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| (percent of capacity utilization) | 2024 | 2023 | 2024 | 2023 | |||||||
| Consolidated | 97 | % | 99 | % | 96 | % | 101 | % | |||
_________________
(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 nine months ended September 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 September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Consolidated sales volumes (thousand tons): | |||||||||||
| Ammonia | 62 | 62 | 175 | 183 | |||||||
| UAN | 336 | 387 | 950 | 1,075 | |||||||
| Consolidated product pricing at gate (dollars per ton):(1) | |||||||||||
| Ammonia | $ | 399 | $ | 365 | $ | 481 | $ | 633 | |||
| UAN | 229 | 223 | 254 | 330 | |||||||
| Consolidated production volume (thousand tons): | |||||||||||
| Ammonia(gross produced)(2) | 212 | 217 | 626 | 660 | |||||||
| Ammonia(net available for sale)(2) | 61 | 68 | 191 | 200 | |||||||
| UAN | 321 | 358 | 964 | 1,063 | |||||||
| Feedstock: | |||||||||||
| Petroleum coke used in production(thousands of tons) | 133 | 131 | 395 | 386 | |||||||
| Petroleum coke used in production(dollars per ton) | $ | 44.69 | $ | 84.09 | $ | 60.93 | $ | 78.49 | |||
| Natural gas used in production(thousands of MMBtus)(3) | 2,082 | 2,133 | 6,443 | 6,429 | |||||||
| Natural gas used in production(dollars per MMBtu)(3) | $ | 2.19 | $ | 2.67 | $ | 2.40 | $ | 3.57 | |||
| Natural gas in cost of materials and other(thousands of MMBtus)(3) | 1,783 | 2,636 | 5,403 | 6,354 | |||||||
| Natural gas in cost of materials and other(dollars per MMBtu)(3) | $ | 2.18 | $ | 2.51 | $ | 2.50 | $ | 4.21 | |||
_________________
(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 September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Ammonia — Southern plains(dollars per ton) | $ | 481 | $ | 429 | $ | 507 | $ | 533 | |||
| Ammonia — Corn belt(dollars per ton) | 529 | 501 | 550 | 621 | |||||||
| UAN — Corn belt(dollars per ton) | 240 | 272 | 264 | 314 | |||||||
| Natural gas NYMEX(dollars per MMBtu) | $ | 2.23 | $ | 2.66 | $ | 2.22 | $ | 2.58 | |||
Q4 2024 Outlook
The table below summarizes our outlook for certain operational statistics and financial information for the fourth quarter of 2024. See “Forward-Looking Statements” above.
| Q4 2024 | |||||||
| Low | High | ||||||
| Petroleum | |||||||
| Total throughput(bpd) | 200,000 | 215,000 | |||||
| Direct operating expenses(in millions)(1) | $ | 100 | $ | 110 | |||
| Turnaround(2) | 8 | 12 | |||||
| Renewables(3) | |||||||
| Total throughput(in millions of gallons) | 17 | 22 | |||||
| Direct operating expenses(in millions)(1) | $ | 9 | $ | 11 | |||
| Nitrogen Fertilizer | |||||||
| Ammonia utilization rates | |||||||
| Consolidated | 92 | % | 97 | % | |||
| Coffeyville Fertilizer Facility | 90 | % | 95 | % | |||
| East Dubuque Fertilizer Facility | 95 | % | 100 | % | |||
| Direct operating expenses(in millions)(1) | $ | 60 | $ | 70 | |||
| Capital Expenditures (in millions)(2) | |||||||
| Petroleum | $ | 38 | $ | 42 | |||
| Renewables(3) | 1 | 2 | |||||
| Nitrogen Fertilizer | 19 | 23 | |||||
| Other | 1 | 3 | |||||
| Total capital expenditures | $ | 59 | $ | 70 | |||
_________________
(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) As of September 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net (loss) income | $ | (122 | ) | $ | 354 | $ | 5 | $ | 781 | ||||||
| Interest expense, net | 18 | 11 | 56 | 44 | |||||||||||
| Income tax (benefit) expense | (6 | ) | 84 | (14 | ) | 185 | |||||||||
| Depreciation and amortization | 75 | 81 | 224 | 221 | |||||||||||
| EBITDA | (35 | ) | 530 | 271 | 1,231 | ||||||||||
| Adjustments: | |||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | 59 | (174 | ) | (32 | ) | (228 | ) | ||||||||
| Unrealized loss on derivatives, net | 9 | 48 | 16 | 35 | |||||||||||
| Inventory valuation impacts, unfavorable (favorable) | 30 | (91 | ) | (6 | ) | (44 | ) | ||||||||
| Adjusted EBITDA | $ | 63 | $ | 313 | $ | 249 | $ | 994 | |||||||
Reconciliation of Basic and Diluted (Loss) Earnings per Share to Adjusted (Loss) Earnings per Share
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Basic and diluted (loss) earnings per share | $ | (1.24 | ) | $ | 3.51 | $ | (0.22 | ) | $ | 6.74 | |||||
| Adjustments:(1) | |||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | 0.44 | (1.30 | ) | (0.24 | ) | (1.69 | ) | ||||||||
| Unrealized loss on derivatives, net | 0.07 | 0.36 | 0.12 | 0.26 | |||||||||||
| Inventory valuation impacts, unfavorable (favorable) | 0.23 | (0.68 | ) | (0.04 | ) | (0.33 | ) | ||||||||
| Adjusted (loss) earnings per share | $ | (0.50 | ) | $ | 1.89 | $ | (0.38 | ) | $ | 4.98 | |||||
_________________
(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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash provided by operating activities | $ | 48 | $ | 370 | $ | 306 | $ | 984 | |||||||
| Less: | |||||||||||||||
| Capital expenditures | (34 | ) | (50 | ) | (124 | ) | (150 | ) | |||||||
| Capitalized turnaround expenditures | (2 | ) | (3 | ) | (46 | ) | (53 | ) | |||||||
| Return of equity method investment | 1 | 1 | 5 | 21 | |||||||||||
| Free cash flow | $ | 13 | $ | 318 | $ | 141 | $ | 802 | |||||||
Reconciliation of Petroleum Segment Net (Loss) Income to EBITDA and Adjusted EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Petroleum net (loss) income | $ | (110 | ) | $ | 460 | $ | 35 | $ | 913 | ||||||
| Interest income, net | (5 | ) | (26 | ) | (16 | ) | (65 | ) | |||||||
| Depreciation and amortization | 40 | 50 | 133 | 141 | |||||||||||
| Petroleum EBITDA | (75 | ) | 484 | 152 | 989 | ||||||||||
| Adjustments: | |||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | 59 | (174 | ) | (32 | ) | (228 | ) | ||||||||
| Unrealized loss on derivatives, net | 9 | 53 | 16 | 37 | |||||||||||
| Inventory valuation impacts, unfavorable (favorable)(1) | 31 | (82 | ) | (8 | ) | (48 | ) | ||||||||
| Petroleum Adjusted EBITDA | $ | 24 | $ | 281 | $ | 128 | $ | 750 | |||||||
Reconciliation of Petroleum Segment Gross (Loss) Profit to Refining Margin and Adjusted Refining Margin
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 1,648 | $ | 2,298 | $ | 5,165 | $ | 6,290 | |||||||
| Less: | |||||||||||||||
| Cost of materials and other | (1,604 | ) | (1,691 | ) | (4,645 | ) | (4,939 | ) | |||||||
| Direct operating expenses (exclusive of depreciation and amortization) | (100 | ) | (105 | ) | (320 | ) | (310 | ) | |||||||
| Depreciation and amortization | (40 | ) | (50 | ) | (133 | ) | (141 | ) | |||||||
| Gross (loss) profit | (96 | ) | 452 | 67 | 900 | ||||||||||
| Add: | |||||||||||||||
| Direct operating expenses (exclusive of depreciation and amortization) | 100 | 105 | 320 | 310 | |||||||||||
| Depreciation and amortization | 40 | 50 | 133 | 141 | |||||||||||
| Refining margin | 44 | 607 | 520 | 1,351 | |||||||||||
| Adjustments: | |||||||||||||||
| Revaluation of RFS liability, unfavorable (favorable) | 59 | (174 | ) | (32 | ) | (228 | ) | ||||||||
| Unrealized loss on derivatives, net | 9 | 53 | 16 | 37 | |||||||||||
| Inventory valuation impacts, unfavorable (favorable)(1) | 31 | (82 | ) | (8 | ) | (48 | ) | ||||||||
| Adjusted refining margin | $ | 143 | $ | 404 | $ | 496 | $ | 1,112 | |||||||
_________________
(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 September 30, | Nine Months Ended September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Total throughput barrels per day | 189,294 | 212,420 | 190,427 | 203,388 | |||||||
| Days in the period | 92 | 92 | 274 | 273 | |||||||
| Total throughput barrels | 17,415,033 | 19,542,631 | 52,176,994 | 55,524,925 | |||||||
| (in millions, except per total throughput barrel) | |||||||||||
| Refining margin | $ | 44 | $ | 607 | $ | 520 | $ | 1,351 | |||
| Refining margin per total throughput barrel | $ | 2.53 | $ | 31.05 | $ | 9.96 | $ | 24.33 | |||
| Adjusted refining margin | $ | 143 | $ | 404 | $ | 496 | $ | 1,112 | |||
| Adjusted refining margin per total throughput barrel | $ | 8.23 | $ | 20.73 | $ | 9.51 | $ | 20.02 | |||
| Direct operating expenses (exclusive of depreciation and amortization) | $ | 100 | $ | 105 | $ | 320 | $ | 310 | |||
| Direct operating expenses per total throughput barrel | $ | 5.72 | $ | 5.39 | $ | 6.14 | $ | 5.58 | |||
Reconciliation of Nitrogen Fertilizer Segment Net Income to EBITDA and Adjusted EBITDA
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | |||||||
| Nitrogen Fertilizer net income | $ | 4 | $ | 1 | $ | 43 | $ | 162 | |||
| Interest expense, net | 7 | 8 | 22 | 22 | |||||||
| Depreciation and amortization | 25 | 23 | 64 | 59 | |||||||
| Nitrogen Fertilizer EBITDA and Adjusted EBITDA | $ | 36 | $ | 32 | $ | 129 | $ | 243 | |||
FAQ
What was CVR Energy's (CVI) net loss in Q3 2024?
Why did CVR Energy (CVI) suspend its dividend in Q3 2024?
What was CVR Energy's (CVI) refining throughput in Q3 2024?
What distribution did CVR Partners announce for Q3 2024?
