• CVR Energy Reports Third Quarter 2023 Results, Announces a Cash Dividend of 50 Cents and a Special Dividend of $1.50

    来源: Nasdaq GlobeNewswire / 30 10月 2023 15:47:02   America/Chicago

    SUGAR LAND, Texas, Oct. 30, 2023 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (“CVR Energy” or the “Company”) (NYSE: CVI) today announced net income of $353 million, or $3.51 per diluted share, on net sales of $2.5 billion for the third quarter of 2023, compared to net income of $93 million, or 92 cents per diluted share, on net sales of $2.7 billion for the third quarter of 2022. Adjusted earnings for the third quarter of 2023 was $1.89 per diluted share compared to adjusted earnings of $1.90 per diluted share in the third quarter of 2022. Third quarter 2023 EBITDA was $530 million, compared to third quarter 2022 EBITDA of $181 million. Adjusted EBITDA for the third quarter of 2023 was $313 million, compared to Adjusted EBITDA of $313 million in the third quarter of 2022.

    “CVR Energy achieved solid results for the 2023 third quarter driven by continued strong crack spreads,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “In addition to our third quarter 2023 cash dividend of 50 cents, our Board of Directors was pleased to approve a special dividend of $1.50 per share, bringing our year-to-date declared dividends to $4.00 per share.

    “CVR Partners posted solid operating results for the 2023 third quarter driven by safe, reliable operations with a combined ammonia production rate of 99 percent,” Lamp said. “CVR Partners also announced a cash distribution of $1.55 per common unit for the 2023 third quarter.”

    Petroleum

    The Petroleum Segment reported third quarter 2023 operating income of $431 million on net sales of $2.3 billion, compared to operating income of $137 million on net sales of $2.5 billion in the third quarter of 2022.

    Refining margin per total throughput barrel was $31.05 in the third quarter of 2023, compared to $16.56 during the same period in 2022. The increase in refining margin of $300 million was primarily due to lower Renewable Fuel Standard (“RFS”) related expense and favorable inventory valuations. The Group 3 2-1-1 crack spread decreased by $4.84 per barrel relative to the third quarter of 2022, driven by a tightening distillate crack spread due primarily to recession concerns and slowing demand trends.

    The Petroleum Segment recognized costs to comply with the RFS of $90 million, or $4.64 per throughput barrel, which excludes the RINs’ revaluation benefit impact of $173 million, or $8.88 per total throughput barrel, for the third quarter of 2023. This is compared to RFS compliance costs of $98 million, or $5.28 per throughput barrel, which excludes the RINs’ revaluation expense impact of $38 million, or $2.06 per total throughput barrel, for the third quarter of 2022. The decrease in RFS compliance costs in 2023 was primarily related to a decrease in RIN prices, coupled with an increase in RINs generated by ethanol and biodiesel blending for the third quarter of 2023 compared to the 2022 period. The favorable RINs’ revaluation in 2023 was a result of a mark-to-market benefit in the current period due to a decline in RIN prices and a lower outstanding obligation in the current period compared to the 2022 period.

    The Petroleum Segment also recognized a third quarter 2023 derivative net loss of $98 million, or $5.01 per total throughput barrel, compared to a derivative net gain of $13 million, or 71 cents per total throughput barrel, for the third quarter of 2022. Included in this derivative net loss for the third quarter of 2023 was a $53 million unrealized loss, primarily a result of crack spread swaps, inventory hedging activity and Canadian crude forward purchases and sales, compared to a $25 million unrealized gain for the third quarter of 2022. Offsetting these impacts, crude oil prices increased during the quarter, which led to a favorable inventory valuation impact of $82 million, or $4.18 per total throughput barrel, compared to an unfavorable inventory valuation impact of $107 million, or $5.78 per total throughput barrel, during the third quarter of 2022.

    Third quarter 2023 combined total throughput was approximately 212,000 bpd, compared to approximately 202,000 bpd of combined total throughput for the third quarter of 2022.

    Nitrogen Fertilizer

    The Nitrogen Fertilizer Segment reported operating income of $8 million on net sales of $131 million for the third quarter of 2023, compared to an operating loss of $12 million on net sales of $156 million for the third quarter of 2022.

    CVR Partners, LP’s (“CVR Partners”) fertilizer facilities produced a combined 217,000 tons of ammonia during the third quarter of 2023, of which 68,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 358,000 tons of urea ammonia nitrate (“UAN”). During the third quarter 2022, the fertilizer facilities produced 114,000 tons of ammonia, of which 36,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 184,000 tons of UAN. These increases were due to operating reliability after completing the planned turnarounds at both fertilizer facilities during the third quarter of 2022.

    Third quarter 2023 average realized gate prices for UAN showed a reduction over the prior year, down 48 percent to $223 per ton, and ammonia was down 56 percent over the prior year to $365 per ton. Average realized gate prices for UAN and ammonia were $433 and $837 per ton, respectively, for the third quarter of 2022.

    Corporate and Other

    The Company reported an income tax expense of $84 million, or 19.3 percent of income before income taxes, for the three months ended September 30, 2023, as compared to an income tax expense of $7 million, or 8.3 percent of income before income taxes, for the three months ended September 30, 2022. The increases in income tax expense and effective tax rate were due primarily to changes in pretax earnings and earnings attributable to noncontrolling interest.

    The renewable diesel unit at the Wynnewood refinery continued to increase production, with total vegetable oil throughputs for the third quarter of 2023 of approximately 23.8 million gallons, up from 17.7 million gallons in the third quarter of 2022. The increase was due primarily to operations at the renewable diesel unit still ramping up in the third quarter of 2022 as this was the first full quarter of operations after the unit’s completion in April 2022.

    Cash, Debt and Dividend

    Consolidated cash and cash equivalents were $889 million at September 30, 2023, an increase of $379 million from December 31, 2022. Consolidated total debt and finance lease obligations were $1.6 billion at September 30, 2023, including $547 million held by the Nitrogen Fertilizer Segment.

    On September 26, 2023, CVR Partners and certain of its subsidiaries entered into Amendment No. 1 to the Credit Agreement (the “ABL Amendment”). The ABL Amendment amended that certain Credit Agreement, dated as of September 30, 2021 (as amended, the “Nitrogen Fertilizer ABL”), to, among other things, (i) increase the aggregate principal amount available under the credit facility by an additional $15 million to a total of $50 million in the aggregate, with an incremental facility of an additional $15 million in the aggregate subject to additional lender commitments and certain other conditions, and (ii) extend the maturity date by an additional four years to September 26, 2028. The proceeds of the Nitrogen Fertilizer ABL may be used to fund working capital, capital expenditures and for other general corporate purposes.

    CVR Energy announced a third quarter 2023 cash dividend of 50 cents per share. In addition, the Company announced a special dividend of $1.50 per share. The quarterly and special dividends, as declared by CVR Energy’s Board of Directors, will be paid on November 20, 2023, to stockholders of record as of November 13, 2023.

    Today, CVR Partners announced that the Board of Directors of its general partner declared a third quarter 2023 cash distribution of $1.55 per common unit, which will be paid on November 20, 2023, to common unitholders of record as of November 13, 2023.

    Third Quarter 2023 Earnings Conference Call

    CVR Energy previously announced that it will host its third quarter 2023 Earnings Conference Call on Tuesday, October 31, 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 2023 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/ez75egze. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13741665.

    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: drivers of results; crack spreads, including the continued strength thereof; production rates of CVR Partners, including the impact thereof on results; net income and sales; adjusted earnings including the drivers thereof; EBITDA and Adjusted EBITDA; operating income; net sales; refining margin and the drivers thereof; RFS expense; inventory valuation impacts; crack spreads, including the tightening of distillate cracks; recession; demand trends; cost to comply with the Renewable Fuel Standard, RIN prices and level and valuation of our net RVO; CVR Energy’s blending activity, including its impact on RFS compliance costs; derivative activities and realized and unrealized gains or losses associated therewith; crude oil pricing; throughput rates, including factors impacting same; crude oil supply; UAN, ammonia and nitrogen fertilizer production, demand, pricing and sales volumes, including the factors impacting same; rates at which ammonia will be upgraded to other fertilizer products; operational reliability, including the factors impacting same; tax rates and expense; quarterly and special dividends and distributions, including the timing, payment and amount (if any) thereof; production rates of our renewable diesel unit and related feedstock throughput, including factors impacting same; any decision to return a unit back to hydrocarbon processing following renewable conversion; cash and cash equivalent levels; credit facility availability; continued safe and reliable operations; operating expenses, capital expenditures, depreciation and amortization and turnaround expense; the expected timing and completion of turnaround projects; renewables initiatives; conversion of hydrocrackers at Coffeyville and/or feed pretreaters, including the completion, operation, capacities, timing, costs, optionality and benefits thereof; carbon capture and decarbonization initiatives; labor supply shortages, labor difficulties, labor disputes or strikes; utilization rates; global fertilizer industry conditions; crop and planting conditions; natural gas and global energy costs; 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 the rate of any economic improvement, demand for fossil fuels, price volatility of crude oil, other feedstocks and refined products (among others); the ability of the Company to pay cash dividends and CVR Partners to make cash distributions; potential operating hazards; costs of compliance with existing, or compliance with new, laws and regulations and potential liabilities arising therefrom; impacts of planting season on CVR Partners; our controlling shareholder’s intention regarding ownership of our common stock, including any dispositions of our common stock; the health and economic effects of the COVID-19 pandemic and any variant thereof; general economic and business conditions; political disturbances, geopolitical instability and tensions, and associated changes in global trade policies and economic sanctions, including, but not limited to, in connection with the Russia/Ukraine and Israel/Hamas conflicts; impacts of plant outages and weather events on throughput volume; risks related to the conclusion of consideration of a spin-off of some or all of Company’s interests in its nitrogen fertilizer business or potential future reconsideration thereof; our ability to refinance our debt on acceptable terms or at all; 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.

    The following are non-GAAP measures we present for the period ended September 30, 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.

    Refining Margin, adjusted for Inventory Valuation Impacts - Refining Margin adjusted to exclude the impact of current period market price and volume fluctuations on crude oil and refined product inventories purchased in prior periods and lower of cost or net realizable value adjustments, if applicable. We record our commodity inventories on the first-in-first-out basis. As a result, significant current period fluctuations in market prices and the volumes we hold in inventory can have favorable or unfavorable impacts on our refining margins as compared to similar metrics used by other publicly-traded companies in the refining industry.

    Refining Margin and Refining Margin adjusted for Inventory Valuation Impacts, per Throughput Barrel - Refining Margin and Refining Margin adjusted for Inventory Valuation Impacts 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, Adjusted Petroleum EBITDA and Adjusted Nitrogen Fertilizer EBITDA - EBITDA, Petroleum EBITDA and Nitrogen Fertilizer EBITDA 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.

    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.

    Net Debt and Finance Lease Obligations - Net debt and finance lease obligations is total debt and finance lease obligations reduced for cash and cash equivalents.

    Total Debt and Net Debt and Finance Lease Obligations to EBITDA Exclusive of Nitrogen Fertilizer - Total debt and net debt and finance lease obligations is calculated as the consolidated debt and net debt and finance lease obligations less the Nitrogen Fertilizer Segment’s debt and net debt and finance lease obligations as of the most recent period ended divided by EBITDA exclusive of the Nitrogen Fertilizer Segment for the most recent twelve-month period.

    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 $2 million and $4 million during the three months ended September 30, 2023 and 2022, respectively, and $53 million and $73 million during the nine months ended September 30, 2023 and 2022, respectively. The next planned turnarounds are currently scheduled to take place in the spring of 2024 at the Wynnewood Refinery and in 2025 at the Coffeyville Refinery.

    Nitrogen Fertilizer 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 expenses incurred as part of planned turnarounds. We incurred turnaround expenses of $1 million and $31 million during the three months ended September 30, 2023 and 2022, respectively, and $2 million and $33 million during the nine months ended September 30, 2023 and 2022, respectively. The next planned turnarounds are currently scheduled to take place in 2025 at the Coffeyville Fertilizer Facility and in 2026 at the East Dubuque Fertilizer Facility.

     
    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)2023 2022 2023 2022
    Net sales$2,522  $2,699  $7,045  $8,216 
    Operating costs and expenses:       
    Cost of materials and other 1,787   2,267   5,211   6,619 
    Direct operating expenses (exclusive of depreciation and amortization) 170   218   503   545 
    Depreciation and amortization 80   74   217   210 
    Cost of sales 2,037   2,559   5,931   7,374 
    Selling, general and administrative expenses (exclusive of depreciation and amortization) 38   35   109   110 
    Depreciation and amortization 1   1   4   5 
    Loss on asset disposal 1   1   1   1 
    Operating income 445   103   1,000   726 
    Other (expense) income:       
    Interest expense, net (11)  (19)  (44)  (67)
    Other income (expense), net 4   3   10   (81)
    Income before income tax expense 438   87   966   578 
    Income tax expense 84   7   185   106 
    Net income 354   80   781   472 
    Less: Net income (loss) attributable to noncontrolling interest 1   (13)  103   121 
    Net income attributable to CVR Energy stockholders$353  $93  $678  $351 
            
    Basic and diluted earnings per share$3.51  $0.92  $6.74  $3.49 
    Dividends declared per share$1.50  $3.00  $2.50  $3.40 
            
    Adjusted earnings per share$1.89  $1.90  $4.98  $4.37 
    EBITDA*$530  $181  $1,231  $860 
    Adjusted EBITDA *$313  $313  $994  $979 
            
    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)September 30, 2023 December 31, 2022
    Cash and cash equivalents$889 $510
    Working capital 576  154
    Total assets 4,421  4,119
    Total debt and finance lease obligations, including current portion 1,590  1,591
    Total liabilities 3,269  3,328
    Total CVR stockholders’ equity 957  531


     
    Selected Cash Flow Data
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions)2023 2022 2023 2022
    Net cash provided by (used in):       
    Operating activities$370  $156  $984  $868 
    Investing activities (51)  (61)  (181)  (217)
    Financing activities (181)  (370)  (424)  (543)
    Net increase (decrease) in cash and cash equivalents and restricted cash$138  $(275) $379  $108 
            
    Free cash flow*$318  $93  $802  $649 

    __________________________
    * See “Non-GAAP Reconciliations” section below.

     
    Selected Segment Data
     
     Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023
    (in millions)Petroleum Nitrogen
    Fertilizer
     Consolidated Petroleum Nitrogen
    Fertilizer
     Consolidated
    Net sales$2,298 $131 $2,522 $6,290 $540 $7,045
    Operating income 431  8  445  838  184  1,000
    Net income 460  1  354  913  162  781
    EBITDA* 484  32  530  989  243  1,231
                
    Capital expenditures (1)           
    Maintenance capital expenditures$20 $8 $30 $70 $17 $92
    Growth capital expenditures 6    21  9  1  56
    Total capital expenditures$26 $8 $51 $79 $18 $148


     Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022
    (in millions)Petroleum Nitrogen
    Fertilizer
     Consolidated Petroleum Nitrogen
    Fertilizer
     Consolidated
    Net sales$2,474 $156  $2,699 $7,497 $623 $8,216
    Operating income 137  (12)  103  564  218  726
    Net income 152  (20)  80  584  191  472
    EBITDA* 186  10   181  700  281  860
                
    Capital expenditures (1)           
    Maintenance capital expenditures$22 $25  $52 $59 $38 $103
    Growth capital expenditures 1     16  2  1  56
    Total capital expenditures$23 $25  $68 $61 $38 $158

    __________________________
    * See “Non-GAAP Reconciliations” section below.
    (1)   Capital expenditures are shown exclusive of capitalized turnaround expenditures.

     
    Selected Balance Sheet Data
     
     September 30, 2023 December 31, 2022
    (in millions)Petroleum Nitrogen
    Fertilizer
     Consolidated Petroleum Nitrogen
    Fertilizer
     Consolidated
    Cash and cash equivalents (1)$618 $89 $889 $235 $86 $510
    Total assets 4,635  1,019  4,421  4,354  1,100  4,119
    Total debt and finance lease obligations, including current portion (2) 46  547  1,590  48  547  1,591

    __________________________
    (1)   Corporate cash and cash equivalents consisted of $182 million and $189 million at September 30, 2023 and December 31, 2022, respectively.
    (2)   Corporate total debt and finance lease obligations, including current portion consisted of $997 million and $996 million at September 30, 2023 and December 31, 2022, respectively.

     
    Petroleum Segment
     
    Key Operating Metrics per Total Throughput Barrel
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions)2023 2022 2023 2022
    Refining margin *$31.05 $16.56 $24.33 $19.82
    Refining margin adjusted for inventory valuation impacts * 26.87  22.34  23.46  18.66
    Direct operating expenses * 5.39  5.53  5.58  5.74

    __________________________
    * See “Non-GAAP Reconciliations” section below.

     
    Throughput Data by Refinery
        
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in bpd)2023 2022 2023 2022
    Coffeyville       
    Regional crude68,176 60,762 62,442 55,675
    WTI27,837 30,261 30,161 37,465
    WTL 312  544
    WTS 1,222  412
    Midland WTI   858
    Condensate7,401 10,674 7,718 10,871
    Heavy Canadian2,731 7,372 2,307 6,869
    DJ Basin20,504 13,526 17,006 14,092
    Bakken962  324 
    Other feedstocks and blendstocks12,260 8,846 12,538 9,811
    Wynnewood       
    Regional crude53,554 45,840 51,519 45,553
    WTL 4,915 1,639 2,323
    Midland WTI543  183 539
    WTS   191
    Condensate15,780 15,313 14,567 12,121
    Other feedstocks and blendstocks2,672 2,614 2,984 2,774
    Total throughput212,420 201,657 203,388 200,098


     
    Production Data by Refinery
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in bpd)2023 2022 2023 2022
    Coffeyville       
    Gasoline        69,833          67,048          67,463          71,005 
    Distillate        60,661          56,848          56,311          56,768 
    Other liquid products        4,463          4,832          4,461          5,183 
    Solids        4,416          4,741          3,896          4,482 
    Wynnewood       
    Gasoline        36,997          36,423          37,656          33,040 
    Distillate        25,615          24,605          24,825          23,154 
    Other liquid products        9,038          6,264          7,355          5,436 
    Solids        9          8          10          12 
    Total production        211,032          200,769          201,977          199,080 
            
    Light product yield (as % of crude throughput) (1)97.8% 97.2% 99.1% 98.1%
    Liquid volume yield (as % of total throughput) (2)97.3% 97.2% 97.4% 97.2%
    Distillate yield (as % of crude throughput) (3)43.7% 42.8% 43.2% 42.6%

    __________________________
    (1)   Total Gasoline and Distillate divided by total Regional crude, WTI, WTL, Midland WTI, WTS, Condensate, Heavy Canadian, DJ Basin, and Bakken throughput.
    (2)   Total Gasoline, Distillate, and Other liquid products divided by total throughput.
    (3)   Total Distillate divided by total Regional crude, WTI, WTL, Midland WTI, WTS, Condensate, Heavy Canadian, DJ Basin, and Bakken throughput.

     
    Key Market Indicators
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
     2023 2022 2023 2022
    West Texas Intermediate (WTI) NYMEX$82.22  $91.43  $77.25  $98.35 
    Crude Oil Differentials to WTI:       
    Brent 3.71   6.27   4.70   4.14 
    WCS (heavy sour) (15.91)  (20.50)  (16.33)  (16.25)
    Condensate (0.22)  0.03   (0.18)  (0.16)
    Midland Cushing 1.53   1.98   1.32   1.52 
    NYMEX Crack Spreads:       
    Gasoline 32.40   30.07   32.61   33.31 
    Heating Oil 45.20   57.56   40.35   51.00 
    NYMEX 2-1-1 Crack Spread 38.80   43.82   36.48   42.16 
    PADD II Group 3 Product Basis:       
    Gasoline 0.84   (2.75)  (2.39)  (6.49)
    Ultra-Low Sulfur Diesel (0.25)  3.01   (0.38)  (1.06)
    PADD II Group 3 Product Crack Spread:       
    Gasoline 33.24   27.32   30.22   26.82 
    Ultra-Low Sulfur Diesel 44.96   60.57   39.97   49.95 
    PADD II Group 3 2-1-1 39.10   43.94   35.10   38.38 


     
    Nitrogen Fertilizer Segment:
     
    Ammonia Utilization Rates (1)
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (percent of capacity utilization)2023 2022 2023 2022
    Consolidated99% 52% 101% 76%

    __________________________
    (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, 2023 and 2022 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,
     2023 2022 2023 2022
    Consolidated sales (thousand tons):       
    Ammonia 62  27  183  118
    UAN 387  275  1,075  884
            
    Consolidated product pricing at gate (dollars per ton):(1)       
    Ammonia$365 $837 $633 $1,062
    UAN 223  433  330  496
            
    Consolidated production volume (thousand tons):       
    Ammonia (gross produced) (2) 217  114  660  494
    Ammonia (net available for sale) (2) 68  36  200  137
    UAN 358  184  1,063  832
            
    Feedstock:       
    Petroleum coke used in production (thousand tons) 131  74  386  298
    Petroleum coke used in production (dollars per ton)$84.09 $51.54 $78.49 $52.68
    Natural gas used in production (thousands of MMBtu) (3) 2,133  1,120  6,429  4,817
    Natural gas used in production (dollars per MMBtu) (3)$2.67 $7.19 $3.57 $6.65
    Natural gas in cost of materials and other (thousands of MMBtu) (3) 2,636  1,330  6,354  4,566
    Natural gas in cost of materials and other (dollars per MMBtu) (3)$2.51 $7.84 $4.21 $6.40

    __________________________
    (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,
     2023 2022 2023 2022
    Ammonia — Southern plains (dollars per ton)$429 $934 $533 $1,149
    Ammonia — Corn belt (dollars per ton) 501  1,048  621  1,275
    UAN — Corn belt (dollars per ton) 272  496  314  581
            
    Natural gas NYMEX (dollars per MMBtu)$2.66 $7.95 $2.58 $6.70
                

    Q4 2023 Outlook

    The table below summarizes our outlook for certain operational statistics and financial information for the fourth quarter of 2023. See “Forward-Looking Statements” above.

     Q4 2023
     Low High
    Petroleum   
    Total throughput (bpd) 205,000   220,000 
    Direct operating expenses (in millions) (1)$95  $105 
        
    Renewables (2)   
    Total throughput (in millions of gallons) 15   20 
    Direct operating expenses (in millions) (1)$6  $8 
        
    Nitrogen Fertilizer   
    Ammonia utilization rates   
    Consolidated 90%  95%
    Coffeyville Fertilizer Facility 95%  100%
    East Dubuque Fertilizer Facility 85%  90%
    Direct operating expenses (in millions) (1)$55  $60 
        
    Capital Expenditures (in millions) (3)   
    Petroleum$40  $45 
    Renewables (2) 13   17 
    Nitrogen Fertilizer 10   15 
    Other 2   4 
    Total capital expenditures$65  $81 

    __________________________
    (1)   Direct operating expenses are shown exclusive of depreciation and amortization and, for the Nitrogen Fertilizer Segment, turnaround expenses and inventory valuation impacts.
    (2)   Renewables reflects spending on the Wynnewood renewable diesel unit project. As of September 30, 2023, Renewables does not meet the definition of a reportable segment as defined under Accounting Standards Codification 280.
    (3)   Capital expenditures is disclosed on an accrual basis.

     
    Non-GAAP Reconciliations:
     
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions)2023 2022 2023  2022 
    Net income$354  $80  $781  $472 
    Interest expense, net 11   19   44   67 
    Income tax expense 84   7   185   106 
    Depreciation and amortization 81   75   221   215 
    EBITDA 530   181   1,231   860 
    Adjustments:       
    Revaluation of RFS liability (174)  38   (228)  108 
    Unrealized loss (gain) on derivatives, net 48   (20)  35   (5)
    Inventory valuation impacts, (favorable) unfavorable (91)  114   (44)  (63)
    Call Option Lawsuits settlement          79 
    Adjusted EBITDA$313  $313  $994  $979 


     
    Reconciliation of Basic and Diluted Earnings per Share to Adjusted Earnings per Share
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
     2023 2022 2023 2022
    Basic and diluted earnings per share$3.51  $0.92  $6.74  $3.49 
    Adjustments: (1)       
    Revaluation of RFS liability (1.30)  0.28   (1.69)  0.80 
    Unrealized loss (gain) on derivatives, net 0.36   (0.15)  0.26   (0.04)
    Inventory valuation impacts, (favorable) unfavorable (0.68)  0.85   (0.33)  (0.46)
    Call Option Lawsuits settlement          0.58 
    Adjusted earnings per share$1.89  $1.90  $4.98  $4.37 

    __________________________
    (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)2023 2022 2023 2022
    Net cash provided by operating activities$370  $156  $984  $868 
    Less:       
    Capital expenditures (50)  (57)  (150)  (145)
    Capitalized turnaround expenditures (3)  (6)  (53)  (74)
    Return on equity method investment 1      21    
    Free cash flow$318  $93  $802  $649 


     
    Reconciliation of Petroleum Segment Net Income to EBITDA and Adjusted EBITDA
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions)2023 2022 2023 2022
    Petroleum net income$460  $152  $913  $584 
    Interest income, net (26)  (13)  (65)  (24)
    Depreciation and amortization 50   47   141   140 
    Petroleum EBITDA 484   186   989   700 
    Adjustments:       
    Revaluation of RFS liability (174)  38   (228)  108 
    Unrealized loss (gain) on derivatives, net 53   (25)  37   (8)
    Inventory valuation impacts, (favorable) unfavorable (1) (82)  107   (48)  (63)
    Petroleum Adjusted EBITDA$281  $306  $750  $737 


     
    Reconciliation of Petroleum Segment Gross Profit to Refining Margin and Refining Margin Adjusted for Inventory Valuation Impacts
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions)2023 2022 2023 2022
    Net sales$2,298  $2,474  $6,290  $7,497 
    Less:       
    Cost of materials and other (1,691)  (2,167)  (4,939)  (6,414)
    Direct operating expenses (exclusive of depreciation and amortization) (105)  (103)  (310)  (314)
    Depreciation and amortization (50)  (47)  (141)  (140)
    Gross profit 452   157   900   629 
    Add:       
    Direct operating expenses (exclusive of depreciation and amortization) 105   103   310   314 
    Depreciation and amortization 50   47   141   140 
    Refining margin 607   307   1,351   1,083 
    Inventory valuation impacts, (favorable) unfavorable (1) (82)  107   (48)  (63)
    Refining margin adjusted for inventory valuation impacts$525  $414  $1,303  $1,020 

    __________________________
    (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
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
     2023 2022 2023 2022
    Total throughput barrels per day212,420 201,657 203,388 200,098
    Days in the period92 92 273 273
    Total throughput barrels19,542,631 18,552,434 55,524,925 54,626,789


     
    Reconciliation of Petroleum Segment Refining Margin per Total Throughput Barrel
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions, except for per throughput barrel data)2023 2022 2023 2022
    Refining margin$607 $307 $1,351 $1,083
    Divided by: total throughput barrels 20  19  56  55
    Refining margin per total throughput barrel$31.05 $16.56 $24.33 $19.82


     
    Reconciliation of Petroleum Segment Refining Margin Adjusted for Inventory Valuation Impacts per Total Throughput Barrel
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions, except for throughput barrel data)2023 2022 2023 2022
    Refining margin adjusted for inventory valuation impacts$525 $414 $1,303 $1,020
    Divided by: total throughput barrels 20  19  56  55
    Refining margin adjusted for inventory valuation impacts per total throughput barrel$26.87 $22.34 $23.46 $18.66


     
    Reconciliation of Petroleum Segment Direct Operating Expenses per Total Throughput Barrel
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions, except for throughput barrel data)2023 2022 2023 2022
    Direct operating expenses (exclusive of depreciation and amortization)$105 $103 $310 $314
    Divided by: total throughput barrels 20  19  56  55
    Direct operating expenses per total throughput barrel$5.39 $5.53 $5.58 $5.74


     
    Reconciliation of Nitrogen Fertilizer Segment Net Income (Loss) to EBITDA and Adjusted EBITDA
     
     Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (in millions) 2023  2022   2023  2022
    Nitrogen Fertilizer net income (loss)$1 $(20) $162 $191
    Interest expense, net 8  8   22  26
    Depreciation and amortization 23  22   59  64
    Nitrogen Fertilizer EBITDA and Adjusted EBITDA$32 $10  $243 $281


     
    Reconciliation of Total Debt and Net Debt and Finance Lease Obligations to EBITDA Exclusive of Nitrogen Fertilizer
     
    (in millions)Twelve Months Ended
    September 30, 2023
    Total debt and finance lease obligations (1)$1,590
    Less: Nitrogen Fertilizer debt and finance lease obligations (1) 547
    Total debt and finance lease obligations exclusive of Nitrogen Fertilizer 1,043
      
    EBITDA exclusive of Nitrogen Fertilizer 1,179
      
    Total debt and finance lease obligations to EBITDA exclusive of Nitrogen Fertilizer 0.88
      
    Consolidated cash and cash equivalents 889
    Less: Nitrogen Fertilizer cash and cash equivalents 89
    Cash and cash equivalents exclusive of Nitrogen Fertilizer 800
      
    Net debt and finance lease obligations exclusive of Nitrogen Fertilizer (2) 243
      
    Net debt and finance lease obligations to EBITDA exclusive of Nitrogen Fertilizer (2)$0.21

    __________________________
    (1)   Amounts are shown inclusive of the current portion of long-term debt and finance lease obligations.
    (2)   Net debt represents total debt and finance lease obligations exclusive of cash and cash equivalents.

        
        
     Three Months Ended Twelve Months Ended
    September 30,
    2023
    (1)
    (in millions) December 31,
    2022
     March 31,
    2023
     June 30,
    2023
     September 30,
    2023
     
    Consolidated          
    Net income $172 $259 $168 $354 $953
    Interest expense, net  18  18  16  11  63
    Income tax expense  50  56  44  84  234
    Depreciation and amortization  73  68  72  81  294
    EBITDA  313  401  300  530  1,544
    Nitrogen Fertilizer          
    Net income  95  102  60  1  258
    Interest expense, net  8  7  7  8  30
    Depreciation and amortization  19  15  20  23  77
    EBITDA  122  124  87  32  365
               
    EBITDA exclusive of Nitrogen Fertilizer $191 $277 $213 $498 $1,179

    __________________________
    (1)   Due to rounding, numbers within this table may not add or equal to totals presented.


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