• CVR Energy Reports Second Quarter 2024 Results

    来源: Nasdaq GlobeNewswire / 29 7月 2024 17:09:44   America/New_York

    • 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 $21 million, or 21 cents per diluted share, and EBITDA of $103 million for the second quarter of 2024, compared to net income attributable to CVR Energy stockholders of $130 million, or $1.29 per diluted share, and EBITDA of $300 million for the second quarter of 2023. Excluding the adjustments shown in the corresponding earnings release tables, adjusted earnings per diluted share for the second quarter of 2024 was 9 cents and adjusted EBITDA was $87 million, compared to adjusted earnings per diluted share of $1.64 and adjusted EBITDA of $347 million in the second quarter of 2023.

    “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 $1.90 per common unit.”

    Petroleum

    The Petroleum Segment reported second quarter 2024 net income of $18 million and EBITDA of $56 million, compared to net income of $194 million and EBITDA of $220 million for the second quarter of 2023. Adjusted EBITDA for the Petroleum Segment was $37 million for the second quarter of 2024, compared to $258 million for the second quarter of 2023.

    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 $185 million, or $10.94 per total throughput barrel, compared to $333 million, or $18.21 per total throughput barrel, during the same period in 2023. Included in our second quarter 2024 refining margin were favorable derivative impacts of $17 million from unrealized gains on open crack spread swap positions and favorable inventory valuation impacts of $2 million. Excluding these items, adjusted refining margin for the second quarter of 2024 was $9.81 per barrel, compared to an adjusted refining margin per barrel of $20.27 for the second quarter of 2023. The decrease in adjusted refining margin per barrel was primarily due to a decrease in the Group 3 2-1-1 crack spread.

    Nitrogen Fertilizer

    The Nitrogen Fertilizer Segment reported net income of $26 million and EBITDA of $54 million on net sales of $133 million for the second quarter of 2024, compared to net income of $60 million and EBITDA of $87 million on net sales of $183 million for the second quarter of 2023.

    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 $268 per ton, and ammonia was down 26 percent over the prior year to $520 per ton. Average realized gate prices for UAN and ammonia were $316 and $707 per ton, respectively, for the second quarter of 2023.

    Corporate and Other

    The Company reported an income tax benefit of $26 million, or (219.7) percent of income before income taxes, for the three months ended June 30, 2024, compared to an income tax expense of $44 million, or 20.9 percent of income before income taxes, for the three months ended June 30, 2023. The decrease in income tax expense was primarily due to a decrease in overall pretax earnings, while the change in the effective tax rate was primarily due to changes in pretax earnings attributable to noncontrolling interest and the impact of federal and state tax credits and incentives in relation to overall pretax earnings.

    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 $586 million at June 30, 2024, an increase of $5 million from December 31, 2023. Consolidated total debt and finance lease obligations were $1.6 billion at June 30, 2024, including $548 million held by the Nitrogen Fertilizer Segment.

    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 $1.90 per common unit, which will be paid on August 19, 2024, to common unitholders of record as of August 12, 2024.

    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 $3 million and $11 million during the three months ended June 30, 2024 and 2023, respectively, and $42 million and $51 million during the six months ended June 30, 2024 and 2023, respectively. The next planned turnaround is currently scheduled to take place in 2025 at the Coffeyville refinery.

    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 $995 million and $1,594 million at June 30, 2024 and December 31, 2023, respectively.

    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 DataThree Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in bpd)2024 2023 2024 2023
    Coffeyville       
    Gathered crude86,851 73,547 74,628 59,527
    Other domestic28,625 41,721 37,275 46,572
    Canadian9,518 84 9,525 2,091
    Condensate5,079 6,598 6,390 7,879
    Other crude oil551 — 275 —
    Other feedstocks and blendstocks10,773 12,124 11,671 12,678
    Wynnewood       
    Gathered crude34,190 51,142 38,624 50,485
    Other domestic2,421 1,002 1,210 2,471
    Condensate5,965 11,992 8,114 13,950
    Other feedstocks and blendstocks2,235 2,865 3,287 3,144
    Total throughput186,208 201,075 190,999 198,797


    Production DataThree Months Ended
    June 30,    		 Six Months Ended
    June 30,
    (in bpd)2024 2023 2024 2023
    Coffeyville       
    Gasoline71,515  68,008  72,119  66,258 
    Distillate57,710  57,996  56,858  54,100 
    Other liquid products7,015  3,816  5,784  4,461 
    Solids4,990  3,916  4,985  3,632 
    Wynnewood       
    Gasoline25,672  36,017  28,828  37,991 
    Distillate16,053  23,604  17,610  24,424 
    Other liquid products2,349  6,714  3,956  6,499 
    Solids6  10  6  10 
    Total production185,310  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
    Consolidated102% 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

    Primary Logo

分享