SUGAR LAND, Texas, Nov. 1, 2013 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced third quarter 2013 net income of
$44.0 million, or 51 cents per diluted share, on net sales of
$1,977.1 million, compared to net
income of $208.9 million, or
$2.41 per diluted share, on net sales
of $2,409.6 million for the third
quarter of 2012.
(Logo: http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
"Our third quarter results were heavily impacted by
unprecedented downtime related to the Fluid Catalytic Cracking Unit
outage at CVR Refining's Coffeyville refinery. Significantly weakened
crack spreads and product basis, as well as tightening crude
differentials in late August, further impacted our results," said
Jack Lipinski, chief executive
officer. "The refinery resumed full operations on Sept. 11 and maintained strong operational
performance for the remainder of the quarter."
For the first nine months of 2013, net income was $392.4 million, or $4.52 per diluted share, on net sales of
$6,549.8 million, compared to net
income of $338.4 million, or
$3.86 per diluted share, on net sales
of $6,686.5 million for the same
period in 2012.
The company also announced a third quarter 2013 cash dividend of
75 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
Nov. 18, 2013, to stockholders of
record on Nov. 11, 2013.
Today, CVR Energy's petroleum subsidiary, CVR Refining,
announced a 2013 third quarter cash distribution of 30 cents per common unit, and CVR Partners, CVR
Energy's fertilizer subsidiary, announced a 2013 third quarter cash
distribution of 36 cents per common
unit.
"We continue to return cash to stockholders through quarterly
dividends," Lipinski said. "CVR Energy's third quarter cash
dividend of 75 cents per share brings
the cumulative cash dividends paid or declared for the first nine
months of 2013 to $14.25 per
share."
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
third quarter 2013 operating income of $23.4
million, on net sales of $1,910.5
million, compared to operating income of $507.5 million, on net sales of $2,337.3 million in the third quarter of
2012.
Nitrogen Fertilizers Business
The fertilizer business operated by CVR Partners reported third
quarter 2013 operating income of $21.3
million on net sales of $69.2
million, compared to operating income of $32.3 million on net sales of $75.0 million for the third quarter of 2012.
For the third quarter of 2013, average realized plant gate
prices for UAN and ammonia were $259
per ton and $505 per ton,
respectively, compared to $290 per
ton and $578 per ton, respectively,
for the same period in 2012.
CVR Partners produced 100,400 tons of ammonia and purchased an
additional 1,000 tons of ammonia during the third quarter of 2013,
of which 3,400 net tons were available for sale while the rest was
upgraded to a record 239,300 tons of UAN. In the 2012 third
quarter, the plant produced 104,200 tons of ammonia with 29,400 net
tons available for sale with the remainder upgraded to 181,900 tons
of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$250.5 million for CVR Refining and
$87.2 million for CVR Partners, was
$887.1 million at Sept. 30, 2013. Consolidated total debt was
$676.4 million at Sept. 30, 2013. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Third Quarter 2013 Earnings Conference Call
Information
CVR Energy previously announced that it will host its third
quarter 2013 Earnings Conference Call for analysts and investors on
Friday, Nov. 1, at 2:30 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the
Internet at http://www.videonewswire.com/event.asp?id=96154. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8291.
For those unable to listen live, the Webcast will be archived
and available for 14 days at
http://www.videonewswire.com/event.asp?id=96154. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 421497.
Forward Looking Statements
This news release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking statements by
our use of forward-looking terminology such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "explore,"
"evaluate," "intend," "may," "might," "plan," "potential,"
"predict," "seek," "should," or "will," or the negative thereof or
other variations thereon or comparable terminology. These
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond our
control. For a discussion of risk factors which may affect our
results, please see the risk factors and other disclosures included
in our most recent Annual Report on Form 10-K, and any subsequently
filed Quarterly Reports on Form 10-Q. These risks may cause our
actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or
implied by these forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements
included in this press release are made only as of the date hereof.
CVR Energy disclaims any intention or obligation to update publicly
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent
required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land,
Texas, CVR Energy is a diversified holding company primarily
engaged in the petroleum refining and nitrogen fertilizer
manufacturing industries through its holdings in two limited
partnerships, CVR Refining, LP and CVR Partners, LP. CVR Energy
subsidiaries serve as the general partner and own a majority of the
common units representing limited partner interests of CVR Refining
and CVR Partners.
For further information, please contact:
Investor Relations:
Jay
Finks
CVR Energy, Inc.
281-207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
281-207-3550
MediaRelations@CVREnergy.com
|
|
|
CVR Energy,
Inc.
|
|
|
Financial and
Operations Data (all information in this release is unaudited
unless noted otherwise).
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except per share data)
|
|
Consolidated
Statement of Operations Data:
|
|
|
|
Net sales
|
$
|
1,977.1
|
|
|
$
|
2,409.6
|
|
|
$
|
6,549.8
|
|
|
$
|
6,686.5
|
|
|
Cost of product
sold
|
1,744.4
|
|
|
1,702.5
|
|
|
5,343.5
|
|
|
5,211.9
|
|
|
Direct operating
expenses
|
128.4
|
|
|
109.9
|
|
|
345.2
|
|
|
319.5
|
|
|
Selling, general and
administrative expenses
|
27.7
|
|
|
30.4
|
|
|
85.0
|
|
|
147.7
|
|
|
Depreciation and
amortization
|
36.2
|
|
|
33.1
|
|
|
105.4
|
|
|
97.4
|
|
|
Operating
income
|
40.4
|
|
|
533.7
|
|
|
670.7
|
|
|
910.0
|
|
|
Interest expense and
other financing costs
|
(11.7)
|
|
|
(18.9)
|
|
|
(39.6)
|
|
|
(57.1)
|
|
|
Interest
income
|
0.3
|
|
|
0.3
|
|
|
0.9
|
|
|
0.5
|
|
|
Gain (loss) on
derivatives, net
|
72.5
|
|
|
(168.9)
|
|
|
173.0
|
|
|
(277.4)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(26.1)
|
|
|
—
|
|
|
Other income
(expense), net
|
6.2
|
|
|
(0.1)
|
|
|
6.5
|
|
|
0.8
|
|
|
Income before income
tax expense
|
107.7
|
|
|
346.1
|
|
|
785.4
|
|
|
576.8
|
|
|
Income tax
expense
|
29.5
|
|
|
127.6
|
|
|
222.8
|
|
|
209.0
|
|
|
Net income
|
78.2
|
|
|
218.5
|
|
|
562.6
|
|
|
367.8
|
|
|
Less: Net income
attributable to noncontrolling interest
|
34.2
|
|
|
9.6
|
|
|
170.2
|
|
|
29.4
|
|
|
Net income
attributable to CVR Energy stockholders
|
$
|
44.0
|
|
|
$
|
208.9
|
|
|
$
|
392.4
|
|
|
$
|
338.4
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
$
|
0.51
|
|
|
$
|
2.41
|
|
|
$
|
4.52
|
|
|
$
|
3.90
|
|
|
Diluted earnings per
share
|
$
|
0.51
|
|
|
$
|
2.41
|
|
|
$
|
4.52
|
|
|
$
|
3.86
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
42.4
|
|
|
$
|
470.6
|
|
|
$
|
549.7
|
|
|
$
|
1,063.1
|
|
|
Adjusted net
income*
|
$
|
5.2
|
|
|
$
|
260.2
|
|
|
$
|
286.3
|
|
|
$
|
562.1
|
|
|
Adjusted net income,
per diluted share*
|
$
|
0.06
|
|
|
$
|
3.00
|
|
|
$
|
3.30
|
|
|
$
|
6.42
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
87.6
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30, 2013
|
|
As of December 31,
2012
|
|
|
|
(audited)
|
|
(in
millions)
|
|
Balance Sheet
Data:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
887.1
|
|
|
$
|
896.0
|
|
|
Working
capital
|
1,395.2
|
|
|
1,135.4
|
|
|
Total
assets
|
3,875.1
|
|
|
3,610.9
|
|
|
Total debt, including
current portion
|
676.4
|
|
|
898.2
|
|
|
Total CVR
stockholders' equity
|
1,276.2
|
|
|
1,525.1
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
(41.1)
|
|
|
$
|
347.9
|
|
|
$
|
321.3
|
|
|
$
|
783.8
|
|
|
Investing
activities
|
(62.9)
|
|
|
(38.8)
|
|
|
(177.4)
|
|
|
(143.6)
|
|
|
Financing
activities
|
(143.4)
|
|
|
(13.5)
|
|
|
(152.8)
|
|
|
(40.3)
|
|
|
Net cash
flow
|
$
|
(247.4)
|
|
|
$
|
295.6
|
|
|
$
|
(8.9)
|
|
|
$
|
599.9
|
|
Segment Information
Our operations are organized into two reportable segments,
Petroleum and Nitrogen Fertilizer. Our operations that are not
included in the Petroleum and Nitrogen Fertilizer segments are
included in Corporate and Other segment (along with elimination of
intersegment transactions). The Petroleum segment includes the
operations of our Coffeyville,
Kansas and Wynnewood,
Oklahoma refineries along with our crude oil gathering and
pipeline systems. Effective with its initial public offering on
January 23, 2013, our Petroleum
segment is operated by CVR Refining, LP ("CVR Refining"), in which
we own a majority interest as well as the general partner. Detailed
operating results for the Petroleum segment for the quarter ended
September 30, 2013 are included in
CVR Refining's press release dated November
1, 2013. The Nitrogen Fertilizer segment is operated by CVR
Partners, LP, ("CVR Partners") in which we own a majority interest
as well as the general partner. It consists of a nitrogen
fertilizer manufacturing facility that utilizes a pet coke
gasification process in producing nitrogen fertilizer. Detailed
operating results for the Nitrogen Fertilizer segment for the
quarter ended September 30, 2013 are
included in CVR Partners' press release dated November 1, 2013.
The Petroleum Segment, as reported herein for the three and nine
months ended September 30, 2012, is
not reflective of the full and actual financial statements of CVR
Refining as certain allocations that were charged to CVR Refining
were not made at the Petroleum segment. Beginning in 2013, the
financial statements of the Petroleum segment are the same as CVR
Refining's financial statements.
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
Three months ended
September 30, 2013
|
|
|
|
Net sales
|
|
$
|
1,910.5
|
|
|
$
|
69.2
|
|
|
$
|
(2.6)
|
|
|
$
|
1,977.1
|
|
|
Cost of product
sold
|
|
1,734.7
|
|
|
13.0
|
|
|
(3.3)
|
|
|
1,744.4
|
|
|
Direct operating
expenses (1)
|
|
104.7
|
|
|
23.7
|
|
|
—
|
|
|
128.4
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
18.9
|
|
|
4.6
|
|
|
4.2
|
|
|
27.7
|
|
|
Depreciation and
amortization
|
|
28.8
|
|
|
6.6
|
|
|
0.8
|
|
|
36.2
|
|
|
Operating income
(loss)
|
|
$
|
23.4
|
|
|
$
|
21.3
|
|
|
$
|
(4.3)
|
|
|
$
|
40.4
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
60.7
|
|
|
$
|
4.0
|
|
|
$
|
4.3
|
|
|
$
|
69.0
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2013
|
|
|
|
Net sales
|
|
$
|
6,322.6
|
|
|
$
|
239.4
|
|
|
$
|
(12.2)
|
|
|
$
|
6,549.8
|
|
|
Cost of product
sold
|
|
5,317.0
|
|
|
39.2
|
|
|
(12.7)
|
|
|
5,343.5
|
|
|
Direct operating
expenses (1)
|
|
274.5
|
|
|
70.7
|
|
|
—
|
|
|
345.2
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
57.8
|
|
|
15.8
|
|
|
11.4
|
|
|
85.0
|
|
|
Depreciation and
amortization
|
|
85.2
|
|
|
18.5
|
|
|
1.7
|
|
|
105.4
|
|
|
Operating income
(loss)
|
|
$
|
588.1
|
|
|
$
|
95.2
|
|
|
$
|
(12.6)
|
|
|
$
|
670.7
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
140.8
|
|
|
$
|
35.8
|
|
|
$
|
7.0
|
|
|
$
|
183.6
|
|
|
|
|
|
Petroleum
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
Three months ended
September 30, 2012
|
|
|
|
Net sales
|
|
$
|
2,337.3
|
|
|
$
|
75.0
|
|
|
$
|
(2.7)
|
|
|
$
|
2,409.6
|
|
|
Cost of product
sold
|
|
1,694.0
|
|
|
11.3
|
|
|
(2.8)
|
|
|
1,702.5
|
|
|
Direct operating
expenses (1)
|
|
77.7
|
|
|
20.9
|
|
|
—
|
|
|
98.6
|
|
|
Major scheduled
turnaround expenses
|
|
11.1
|
|
|
0.2
|
|
|
—
|
|
|
11.3
|
|
|
Selling, general and
administrative
|
|
19.5
|
|
|
5.1
|
|
|
5.8
|
|
|
30.4
|
|
|
Depreciation and
amortization
|
|
27.5
|
|
|
5.2
|
|
|
0.4
|
|
|
33.1
|
|
|
Operating income
(loss)
|
|
$
|
507.5
|
|
|
$
|
32.3
|
|
|
$
|
(6.1)
|
|
|
$
|
533.7
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
20.2
|
|
|
$
|
18.2
|
|
|
$
|
1.5
|
|
|
$
|
39.9
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2012
|
|
|
|
Net sales
|
|
$
|
6,465.3
|
|
|
$
|
234.7
|
|
|
$
|
(13.5)
|
|
|
$
|
6,686.5
|
|
|
Cost of product
sold
|
|
5,190.8
|
|
|
34.6
|
|
|
(13.5)
|
|
|
5,211.9
|
|
|
Direct operating
expenses (1)
|
|
218.5
|
|
|
66.2
|
|
|
—
|
|
|
284.7
|
|
|
Major scheduled
turnaround expenses
|
|
34.6
|
|
|
0.2
|
|
|
—
|
|
|
34.8
|
|
|
Selling, general and
administrative
|
|
49.8
|
|
|
18.1
|
|
|
79.8
|
|
|
147.7
|
|
|
Depreciation and
amortization
|
|
80.4
|
|
|
15.8
|
|
|
1.2
|
|
|
97.4
|
|
|
Operating income
(loss)
|
|
$
|
891.2
|
|
|
$
|
99.8
|
|
|
$
|
(81.0)
|
|
|
$
|
910.0
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
82.8
|
|
|
$
|
57.4
|
|
|
$
|
4.8
|
|
|
$
|
145.0
|
|
|
|
(1) Excluding turnaround expenses
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
September 30,
2013
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
250.5
|
|
|
$
|
87.2
|
|
|
$
|
549.4
|
|
|
$
|
887.1
|
|
|
Total
assets
|
|
2,686.5
|
|
|
594.0
|
|
|
594.6
|
|
|
3,875.1
|
|
|
Total debt, including
current portion
|
|
562.9
|
|
|
125.0
|
|
|
(11.5)
|
|
|
676.4
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
153.1
|
|
|
$
|
127.8
|
|
|
$
|
615.1
|
|
|
$
|
896.0
|
|
|
Total
assets
|
|
2,258.5
|
|
|
623.0
|
|
|
729.4
|
|
|
3,610.9
|
|
|
Total debt, including
current portion
|
|
773.2
|
|
|
125.0
|
|
|
—
|
|
|
898.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operations and our Coffeyville and Wynnewood refineries. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Petroleum segment for the quarter ended
September 30, 2013 are included in
CVR Refining's press release dated November
1, 2013.
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except operating statistics)
|
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
Net sales
|
$
|
1,910.5
|
|
|
$
|
2,337.3
|
|
|
$
|
6,322.6
|
|
|
$
|
6,465.3
|
|
|
Cost of product
sold
|
1,734.7
|
|
|
1,694.0
|
|
|
5,317.0
|
|
|
5,190.8
|
|
|
Refining
margin*
|
175.8
|
|
|
643.3
|
|
|
1,005.6
|
|
|
1,274.5
|
|
|
Direct operating
expenses
|
104.7
|
|
|
77.7
|
|
|
274.5
|
|
|
218.5
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
11.1
|
|
|
—
|
|
|
34.6
|
|
|
Depreciation and
amortization
|
28.8
|
|
|
27.5
|
|
|
85.2
|
|
|
80.4
|
|
|
Gross
profit*
|
42.3
|
|
|
527.0
|
|
|
645.9
|
|
|
941.0
|
|
|
Selling, general and
administrative expenses
|
18.9
|
|
|
19.5
|
|
|
57.8
|
|
|
49.8
|
|
|
Operating
income
|
$
|
23.4
|
|
|
$
|
507.5
|
|
|
$
|
588.1
|
|
|
$
|
891.2
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
121.5
|
|
|
$
|
592.4
|
|
|
$
|
922.3
|
|
|
$
|
1,328.8
|
|
|
|
|
|
|
|
|
|
|
Adjusted Petroleum
EBITDA*
|
$
|
33.9
|
|
|
$
|
444.2
|
|
|
$
|
594.5
|
|
|
$
|
989.7
|
|
|
|
|
|
|
|
|
|
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
11.89
|
|
|
$
|
36.31
|
|
|
$
|
20.15
|
|
|
$
|
26.34
|
|
|
FIFO impact
(favorable) unfavorable
|
(3.68)
|
|
|
(2.87)
|
|
|
(1.67)
|
|
|
1.12
|
|
|
Refining margin
adjusted for FIFO impact*
|
8.21
|
|
|
33.44
|
|
|
18.48
|
|
|
27.46
|
|
|
Gross
profit*
|
2.86
|
|
|
29.75
|
|
|
12.94
|
|
|
19.45
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
7.08
|
|
|
5.02
|
|
|
5.50
|
|
|
5.23
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
6.92
|
|
|
$
|
4.81
|
|
|
$
|
5.29
|
|
|
$
|
4.75
|
|
|
Barrels sold (barrels
per day)
|
164,431
|
|
|
200,683
|
|
|
190,055
|
|
|
194,638
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Petroleum
Segment
Summary Refining Throughput and
Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
130,876
|
|
|
78.1
|
%
|
|
149,768
|
|
|
73.8
|
%
|
|
147,074
|
|
|
76.9
|
%
|
|
136,463
|
|
|
73.4
|
%
|
|
Medium
|
20,752
|
|
|
12.4
|
%
|
|
21,188
|
|
|
10.4
|
%
|
|
17,901
|
|
|
9.4
|
%
|
|
21,708
|
|
|
11.7
|
%
|
|
Heavy sour
|
9,072
|
|
|
5.4
|
%
|
|
21,607
|
|
|
10.6
|
%
|
|
17,805
|
|
|
9.3
|
%
|
|
18,418
|
|
|
9.9
|
%
|
|
Total crude oil
throughput
|
160,700
|
|
|
95.9
|
%
|
|
192,563
|
|
|
94.8
|
%
|
|
182,780
|
|
|
95.6
|
%
|
|
176,589
|
|
|
95.0
|
%
|
|
All other feedstocks
and blendstocks
|
6,863
|
|
|
4.1
|
%
|
|
10,475
|
|
|
5.2
|
%
|
|
8,444
|
|
|
4.4
|
%
|
|
9,448
|
|
|
5.0
|
%
|
|
Total
throughput
|
167,563
|
|
|
100.0
|
%
|
|
203,038
|
|
|
100.0
|
%
|
|
191,224
|
|
|
100.0
|
%
|
|
186,037
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
74,990
|
|
|
45.2
|
%
|
|
98,016
|
|
|
48.5
|
%
|
|
89,390
|
|
|
46.8
|
%
|
|
92,114
|
|
|
49.7
|
%
|
|
Distillate
|
69,390
|
|
|
41.8
|
%
|
|
82,224
|
|
|
40.7
|
%
|
|
79,230
|
|
|
41.4
|
%
|
|
75,568
|
|
|
40.8
|
%
|
|
Other (excluding
internally produced fuel)
|
21,666
|
|
|
13.0
|
%
|
|
21,928
|
|
|
10.8
|
%
|
|
22,579
|
|
|
11.8
|
%
|
|
17,588
|
|
|
9.5
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
166,046
|
|
|
100.0
|
%
|
|
202,168
|
|
|
100.0
|
%
|
|
191,199
|
|
|
100.0
|
%
|
|
185,270
|
|
|
100.0
|
%
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
2.89
|
|
|
|
|
$
|
3.03
|
|
|
|
|
$
|
2.86
|
|
|
|
|
$
|
2.93
|
|
|
|
|
Distillate
|
3.07
|
|
|
|
|
3.15
|
|
|
|
|
3.04
|
|
|
|
|
3.07
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
105.81
|
|
|
$
|
92.20
|
|
|
$
|
98.20
|
|
|
$
|
96.16
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
WTI less WTS
(light/medium sour)
|
0.30
|
|
|
3.34
|
|
|
2.14
|
|
|
4.10
|
|
|
WTI less WCS (heavy
sour)
|
22.92
|
|
|
15.53
|
|
|
22.27
|
|
|
21.06
|
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
|
Gasoline
|
16.27
|
|
|
31.70
|
|
|
23.92
|
|
|
29.21
|
|
|
Heating
Oil
|
22.13
|
|
|
33.86
|
|
|
27.46
|
|
|
30.54
|
|
|
NYMEX 2-1-1 Crack
Spread
|
19.20
|
|
|
32.78
|
|
|
25.69
|
|
|
29.87
|
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
|
Gasoline
|
(1.57)
|
|
|
2.22
|
|
|
(2.43)
|
|
|
(2.58)
|
|
|
Ultra Low Sulfur
Diesel
|
0.80
|
|
|
5.53
|
|
|
1.66
|
|
|
2.04
|
|
|
PADD II Group 3
Product Crack:
|
|
|
|
|
|
|
|
|
Gasoline
|
14.70
|
|
|
33.92
|
|
|
21.49
|
|
|
26.63
|
|
|
Ultra Low Sulfur
Diesel
|
22.93
|
|
|
39.38
|
|
|
29.12
|
|
|
32.58
|
|
|
PADD II Group 3
2-1-1
|
18.81
|
|
|
36.65
|
|
|
25.31
|
|
|
29.60
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except operating statistics)
|
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
992.2
|
|
|
$
|
1,564.3
|
|
|
$
|
3,833.9
|
|
|
$
|
4,143.8
|
|
|
Cost of product
sold
|
893.8
|
|
|
1,135.2
|
|
|
3,206.4
|
|
|
3,327.7
|
|
|
Refining
margin*
|
98.4
|
|
|
429.1
|
|
|
627.5
|
|
|
816.1
|
|
|
Direct operating
expenses
|
68.4
|
|
|
47.3
|
|
|
170.7
|
|
|
134.7
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
0.2
|
|
|
—
|
|
|
21.2
|
|
|
Depreciation and
amortization
|
17.7
|
|
|
17.4
|
|
|
52.9
|
|
|
52.1
|
|
|
Gross
profit*
|
$
|
12.3
|
|
|
$
|
364.2
|
|
|
$
|
403.9
|
|
|
$
|
608.1
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
60.0
|
|
|
$
|
384.8
|
|
|
$
|
567.2
|
|
|
$
|
857.8
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
13.48
|
|
|
$
|
37.42
|
|
|
$
|
21.56
|
|
|
$
|
26.71
|
|
|
FIFO impact
(favorable) unfavorable
|
(5.26)
|
|
|
(3.86)
|
|
|
(2.07)
|
|
|
1.37
|
|
|
Refining margin
adjusted for FIFO impact*
|
8.22
|
|
|
33.56
|
|
|
19.49
|
|
|
28.08
|
|
|
Gross
profit*
|
1.69
|
|
|
31.76
|
|
|
13.88
|
|
|
19.90
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
9.37
|
|
|
4.14
|
|
|
5.86
|
|
|
5.10
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
9.12
|
|
|
$
|
3.90
|
|
|
$
|
5.51
|
|
|
$
|
4.58
|
|
|
Barrels sold (barrels
per day)
|
81,532
|
|
|
132,372
|
|
|
113,518
|
|
|
124,172
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Coffeyville
Refinery Throughput and Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
69,785
|
|
|
84.0
|
%
|
|
100,427
|
|
|
76.0
|
%
|
|
88,337
|
|
|
78.4
|
%
|
|
90,871
|
|
|
77.0
|
%
|
|
Medium
|
514
|
|
|
0.6
|
%
|
|
2,609
|
|
|
2.0
|
%
|
|
454
|
|
|
0.4
|
%
|
|
2,216
|
|
|
1.9
|
%
|
|
Heavy sour
|
9,072
|
|
|
10.9
|
%
|
|
21,607
|
|
|
16.4
|
%
|
|
17,805
|
|
|
15.8
|
%
|
|
18,418
|
|
|
15.6
|
%
|
|
Total crude oil
throughput
|
79,371
|
|
|
95.5
|
%
|
|
124,643
|
|
|
94.4
|
%
|
|
106,596
|
|
|
94.6
|
%
|
|
111,505
|
|
|
94.5
|
%
|
|
All other feedstocks
and blendstocks
|
3,711
|
|
|
4.5
|
%
|
|
7,465
|
|
|
5.6
|
%
|
|
6,067
|
|
|
5.4
|
%
|
|
6,448
|
|
|
5.5
|
%
|
|
Total
throughput
|
83,082
|
|
|
100.0
|
%
|
|
132,108
|
|
|
100.0
|
%
|
|
112,663
|
|
|
100.0
|
%
|
|
117,953
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
35,493
|
|
|
42.4
|
%
|
|
63,991
|
|
|
47.8
|
%
|
|
52,507
|
|
|
45.8
|
%
|
|
58,889
|
|
|
49.2
|
%
|
|
Distillate
|
35,206
|
|
|
42.0
|
%
|
|
56,230
|
|
|
42.0
|
%
|
|
48,018
|
|
|
41.9
|
%
|
|
50,766
|
|
|
42.4
|
%
|
|
Other (excluding
internally produced fuel)
|
13,050
|
|
|
15.6
|
%
|
|
13,756
|
|
|
10.2
|
%
|
|
14,003
|
|
|
12.3
|
%
|
|
10,014
|
|
|
8.4
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
83,749
|
|
|
100.0
|
%
|
|
133,977
|
|
|
100.0
|
%
|
|
114,528
|
|
|
100.0
|
%
|
|
119,669
|
|
|
100.0
|
%
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except operating statistics)
|
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
917.2
|
|
|
$
|
772.8
|
|
|
$
|
2,485.4
|
|
|
$
|
2,321.0
|
|
|
Cost of product
sold
|
841.1
|
|
|
559.5
|
|
|
2,110.2
|
|
|
1,864.9
|
|
|
Refining
margin*
|
76.1
|
|
|
213.3
|
|
|
375.2
|
|
|
456.1
|
|
|
Direct operating
expenses
|
36.2
|
|
|
30.1
|
|
|
103.8
|
|
|
83.6
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
11.0
|
|
|
—
|
|
|
13.4
|
|
|
Depreciation and
amortization
|
9.9
|
|
|
9.0
|
|
|
28.7
|
|
|
25.7
|
|
|
Gross
profit*
|
$
|
30.0
|
|
|
$
|
163.2
|
|
|
$
|
242.7
|
|
|
$
|
333.4
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
60.2
|
|
|
$
|
206.7
|
|
|
$
|
352.2
|
|
|
$
|
468.7
|
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
10.17
|
|
|
$
|
34.13
|
|
|
$
|
18.04
|
|
|
$
|
25.58
|
|
|
FIFO impact
(favorable) unfavorable
|
(2.13)
|
|
|
(1.06)
|
|
|
(1.11)
|
|
|
0.70
|
|
|
Refining margin
adjusted for FIFO impact*
|
8.04
|
|
|
33.07
|
|
|
16.93
|
|
|
26.28
|
|
|
Gross
profit*
|
4.00
|
|
|
26.12
|
|
|
11.66
|
|
|
18.70
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.85
|
|
|
6.58
|
|
|
4.99
|
|
|
5.44
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
4.75
|
|
|
$
|
6.54
|
|
|
$
|
4.97
|
|
|
$
|
5.02
|
|
|
Barrels sold (barrels
per day)
|
82,899
|
|
|
68,311
|
|
|
76,537
|
|
|
70,466
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Wynnewood Refinery
Throughput and Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
61,091
|
|
|
72.3
|
%
|
|
49,341
|
|
|
69.6
|
%
|
|
58,737
|
|
|
74.8
|
%
|
|
45,592
|
|
|
67.0
|
%
|
|
Medium
|
20,238
|
|
|
24.0
|
%
|
|
18,579
|
|
|
26.2
|
%
|
|
17,447
|
|
|
22.2
|
%
|
|
19,492
|
|
|
28.6
|
%
|
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
Total crude oil
throughput
|
81,329
|
|
|
96.3
|
%
|
|
67,920
|
|
|
95.8
|
%
|
|
76,184
|
|
|
97.0
|
%
|
|
65,084
|
|
|
95.6
|
%
|
|
All other feedstocks
and blendstocks
|
3,152
|
|
|
3.7
|
%
|
|
3,010
|
|
|
4.2
|
%
|
|
2,377
|
|
|
3.0
|
%
|
|
3,000
|
|
|
4.4
|
%
|
|
Total
throughput
|
84,481
|
|
|
100.0
|
%
|
|
70,930
|
|
|
100.0
|
%
|
|
78,561
|
|
|
100.0
|
%
|
|
68,084
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
39,497
|
|
|
48.0
|
%
|
|
34,025
|
|
|
49.9
|
%
|
|
36,883
|
|
|
48.1
|
%
|
|
33,225
|
|
|
50.7
|
%
|
|
Distillate
|
34,184
|
|
|
41.5
|
%
|
|
25,994
|
|
|
38.1
|
%
|
|
31,212
|
|
|
40.7
|
%
|
|
24,802
|
|
|
37.8
|
%
|
|
Other (excluding
internally produced fuel)
|
8,616
|
|
|
10.5
|
%
|
|
8,172
|
|
|
12.0
|
%
|
|
8,576
|
|
|
11.2
|
%
|
|
7,574
|
|
|
11.5
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
82,297
|
|
|
100.0
|
%
|
|
68,191
|
|
|
100.0
|
%
|
|
76,671
|
|
|
100.0
|
%
|
|
65,601
|
|
|
100.0
|
%
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we own a
majority interest and serve as general partner. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Nitrogen Fertilizer segment for the
quarter ended September 30, 2013 are
included in CVR Partners' press release dated November 1, 2013.
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
69.2
|
|
|
$
|
75.0
|
|
|
$
|
239.4
|
|
|
$
|
234.7
|
|
|
Cost of product
sold
|
13.0
|
|
|
11.3
|
|
|
39.2
|
|
|
34.6
|
|
|
Direct operating
expenses
|
23.7
|
|
|
21.1
|
|
|
70.7
|
|
|
66.4
|
|
|
Selling, general and
administrative expenses
|
4.6
|
|
|
5.1
|
|
|
15.8
|
|
|
18.1
|
|
|
Depreciation and
amortization
|
6.6
|
|
|
5.2
|
|
|
18.5
|
|
|
15.8
|
|
|
Operating
income
|
$
|
21.3
|
|
|
$
|
32.3
|
|
|
$
|
95.2
|
|
|
$
|
99.8
|
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
28.2
|
|
|
$
|
39.0
|
|
|
$
|
116.1
|
|
|
$
|
121.1
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Production (thousand
tons):
|
|
|
|
|
|
|
|
|
Ammonia (gross
produced)(1)
|
100.4
|
|
|
104.2
|
|
|
303.0
|
|
|
302.3
|
|
|
Ammonia (net available
for sale)(1)(2)
|
3.4
|
|
|
29.4
|
|
|
36.3
|
|
|
89.3
|
|
|
UAN
|
239.3
|
|
|
181.9
|
|
|
660.6
|
|
|
516.5
|
|
|
|
|
|
|
|
|
|
|
Pet coke consumed
(thousand tons)
|
116.0
|
|
|
126.9
|
|
|
360.2
|
|
|
377.7
|
|
|
Pet coke (cost per
ton)
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
34
|
|
|
|
|
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
3.3
|
|
|
30.2
|
|
|
37.9
|
|
|
89.5
|
|
|
UAN
|
226.7
|
|
|
175.1
|
|
|
638.1
|
|
|
510.5
|
|
|
|
|
|
|
|
|
|
|
Product pricing
(plant gate) (dollars per ton)(3):
|
|
|
|
|
|
|
|
|
Ammonia
|
$
|
505
|
|
|
$
|
578
|
|
|
$
|
654
|
|
|
$
|
586
|
|
|
UAN
|
$
|
259
|
|
|
$
|
290
|
|
|
$
|
295
|
|
|
$
|
311
|
|
|
|
|
|
|
|
|
|
|
On-stream
factor(4):
|
|
|
|
|
|
|
|
|
Gasification
|
91.2
|
%
|
|
99.1
|
%
|
|
94.1
|
%
|
|
97.2
|
%
|
|
Ammonia
|
90.1
|
%
|
|
98.4
|
%
|
|
92.6
|
%
|
|
96.0
|
%
|
|
UAN
|
89.5
|
%
|
|
96.9
|
%
|
|
89.6
|
%
|
|
92.4
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators
|
|
|
|
|
|
|
|
|
Ammonia -- Southern
Plains (dollars per ton)
|
$
|
498
|
|
|
$
|
677
|
|
|
$
|
611
|
|
|
$
|
616
|
|
|
UAN -- Mid Corn belt
(dollars per ton)
|
$
|
302
|
|
|
$
|
356
|
|
|
$
|
352
|
|
|
$
|
372
|
|
Cost of product sold, direct operating expenses and selling,
general and administrative expenses are all reflected exclusive of
depreciation and amortization.
* See Use of Non-GAAP Financial Measures below.
|
|
|
(1)
|
Gross tons produced
for ammonia represent the total ammonia produced, including ammonia
produced that was upgraded into UAN. As a result of the UAN
expansion project completed in February 2013, the Nitrogen
Fertilizer segment now upgrades substantially all of the ammonia
they produce into UAN. The net tons available for sale represent
the ammonia available for sale that was not upgraded into
UAN.
|
|
|
|
(2)
|
In addition to the
produced ammonia, the Nitrogen Fertilizer segment acquired
approximately 1,000 tons and 5,000 tons of ammonia, which was
upgraded to UAN during the three and nine months ended September
30, 2013.
|
|
|
|
(3)
|
Plant gate sales per
ton represent net sales less freight and hydrogen revenue divided
by product sales volume in tons in the reporting period and is
shown in order to provide a pricing measure that is comparable
across the fertilizer industry.
|
|
|
|
(4)
|
On-stream factor is
the total number of hours operated divided by the total number of
hours in the reporting period and is included as a measure of
operating efficiency. Excluding the impact of the planned downtime
associated with replacement of the damaged catalyst, the on-stream
factors for the three months ended September 30, 2013 would have
been 98.7% for gasifier, 98.2% for ammonia and 97.8% for
UAN.
|
Excluding the impact of the UAN expansion coming on-line, the
planned downtime associated with replacement of the damaged
catalyst, the unplanned Linde air separation unit outages and the
unplanned downtime associated with weather issues, the on-stream
factors for the nine months ended September
30, 2013 would have been 99.3% for gasifier, 98.7% for
ammonia and 97.7% for UAN.
Use of Non-GAAP Financial Measures
To supplement the actual results in accordance with GAAP for the
applicable periods, the Company also uses non-GAAP measures as
noted above which are reconciled to our GAAP-based results below.
These non-GAAP financial measures should not be considered an
alternative for GAAP results. The adjustments are provided to
enhance an overall understanding of the Company's financial
performance for the applicable periods and are indicators
management believes are relevant and useful for planning and
forecasting future periods.
Adjusted net income is not a recognized term under GAAP and
should not be substituted for net income (loss) as a measure of our
performance but rather should be utilized as a supplemental measure
of financial performance in evaluating our business. Management
believes that adjusted net income provides relevant and useful
information that enables external users of our financial
statements, such as industry analysts, investors, lenders and
rating agencies to better understand and evaluate our ongoing
operating results and allow for greater transparency in the review
of our overall financial, operational and economic performance.
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except per share data)
|
|
Reconciliation of
Net Income to Adjusted Net Income:
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
$
|
107.7
|
|
|
$
|
346.1
|
|
|
$
|
785.4
|
|
|
$
|
576.8
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
(54.3)
|
|
|
(50.9)
|
|
|
(83.3)
|
|
|
54.3
|
|
|
Share-based
compensation
|
3.4
|
|
|
6.5
|
|
|
13.7
|
|
|
28.5
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
26.1
|
|
|
—
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
11.3
|
|
|
—
|
|
|
34.8
|
|
|
Loss on disposition
of fixed assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(Gain) loss on
derivatives, net
|
(72.5)
|
|
|
168.9
|
|
|
(173.0)
|
|
|
277.4
|
|
|
Current period
settlement on derivative contracts (1)
|
33.9
|
|
|
(53.2)
|
|
|
(3.9)
|
|
|
(80.4)
|
|
|
Expenses associated
with proxy matters
|
—
|
|
|
—
|
|
|
—
|
|
|
44.2
|
|
|
Expenses associated
with the acquisition of Gary-Williams (2)
|
—
|
|
|
2.0
|
|
|
—
|
|
|
10.3
|
|
|
Adjusted net income
before income tax expense and noncontrolling interest
|
18.2
|
|
|
430.7
|
|
|
565.0
|
|
|
945.9
|
|
|
Adjusted net income
attributed to noncontrolling interest
|
(8.3)
|
|
|
(10.0)
|
|
|
(124.4)
|
|
|
(31.1)
|
|
|
Income tax expense,
as adjusted
|
(4.7)
|
|
|
(160.5)
|
|
|
(154.3)
|
|
|
(352.7)
|
|
|
Adjusted net income
attributable to CVR Energy stockholders
|
$
|
5.2
|
|
|
$
|
260.2
|
|
|
$
|
286.3
|
|
|
$
|
562.1
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.06
|
|
|
$
|
3.00
|
|
|
$
|
3.30
|
|
|
$
|
6.42
|
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between net sales and cost of product
sold (exclusive of depreciation and amortization). Refining margin
is a non-GAAP measure that we believe is important to investors in
evaluating our refineries' performance as a general indication of
the amount above our cost of product sold that we are able to sell
refined products. Each of the components used in this calculation
(net sales and cost of product sold exclusive of depreciation and
amortization) can be taken directly from our Statement of
Operations. Our calculation of refining margin may differ from
similar calculations of other companies in our industry, thereby
limiting its usefulness as a comparative measure. In order to
derive the refining margin per crude oil throughput barrel, we
utilize the total dollar figures for refining margin as derived
above and divide by the applicable number of crude oil throughput
barrels for the period. We believe that refining margin is
important to enable investors to better understand and evaluate our
ongoing operating results and allow for greater transparency in the
review of our overall financial, operational and economic
performance.
Refining margin per crude oil throughput barrel adjusted for
FIFO impact is a measurement calculated as the difference between
net sales and cost of product sold (exclusive of depreciation and
amortization) adjusted for FIFO impacts. Refining margin adjusted
for FIFO impact is a non-GAAP measure that we believe is important
to investors in evaluating our refineries' performance as a general
indication of the amount above our cost of product sold (taking
into account the impact of our utilization of FIFO) that we are
able to sell refined products. Our calculation of refining margin
adjusted for FIFO impact may differ from calculations of other
companies in our industry, thereby limiting its usefulness as a
comparative measure. Under our FIFO accounting method, changes in
crude oil prices can cause fluctuations in the inventory valuation
of our crude oil, work in process and finished goods, thereby
resulting in favorable FIFO impacts when crude oil prices increase
and unfavorable FIFO impacts when crude oil prices decrease.
Gross profit is calculated as the difference between net sales,
cost of product sold (exclusive of depreciation and amortization),
direct operating expenses (exclusive of depreciation and
amortization), major scheduled turnaround expenses and depreciation
and amortization. Gross profit per throughput barrel is calculated
as gross profit as derived above divided by our refineries' crude
oil throughput volumes for the respective periods presented. Gross
profit is a non-GAAP measure that should not be substituted for
operating income. Management believes it is important to investors
in evaluating our refineries' performance and our ongoing operating
results. Our calculation of gross profit may differ from similar
calculations of other companies in our industry, thereby limiting
its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income before
(i) interest expense and other financing costs, net of interest
income, (ii) income tax expense and (iii) depreciation and
amortization. Adjusted EBITDA represents EBITDA adjusted for FIFO
impacts (favorable) unfavorable, share-based compensation, major
scheduled turnaround expenses, loss on disposition of fixed assets,
gain (loss) on derivatives, net, current period settlements on
derivative contracts, loss on extinguishment of debt and expenses
associated with the Gary-Williams acquisition. EBITDA and Adjusted
EBITDA are not recognized terms under GAAP and should not be
substituted for net income or cash flow from operations. Management
believes that EBITDA and Adjusted EBITDA enables investors to
better understand and evaluate our ongoing operating results and
allows for greater transparency in reviewing our overall financial,
operational and economic performance. EBITDA and Adjusted EBITDA
presented by other companies may not be comparable to our
presentation, since each company may define these terms
differently. Below is a reconciliation of net income to EBITDA and
EBITDA to Adjusted EBITDA for the three and nine months ended
September 30, 2013 and 2012:
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Net income
attributable to CVR Energy stockholders
|
$
|
44.0
|
|
|
$
|
208.9
|
|
|
$
|
392.4
|
|
|
$
|
338.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
11.4
|
|
|
18.6
|
|
|
38.7
|
|
|
56.6
|
|
|
Income tax
expense
|
29.5
|
|
|
127.6
|
|
|
222.8
|
|
|
209.0
|
|
|
Depreciation and
amortization
|
36.2
|
|
|
33.1
|
|
|
105.4
|
|
|
97.4
|
|
|
EBITDA adjustments
included in noncontrolling interest
|
(15.1)
|
|
|
(1.8)
|
|
|
(34.9)
|
|
|
(5.7)
|
|
|
EBITDA
|
106.0
|
|
|
386.4
|
|
|
724.4
|
|
|
695.7
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impacts,
(favorable) unfavorable
|
(54.3)
|
|
|
(50.9)
|
|
|
(83.3)
|
|
|
54.3
|
|
|
Share-based
compensation
|
3.4
|
|
|
6.5
|
|
|
13.7
|
|
|
28.5
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
11.3
|
|
|
—
|
|
|
34.8
|
|
|
(Gain) loss on
derivatives, net
|
(72.5)
|
|
|
168.9
|
|
|
(173.0)
|
|
|
277.4
|
|
|
Current period
settlement on derivative contracts (1)
|
33.9
|
|
|
(53.2)
|
|
|
(3.9)
|
|
|
(80.4)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
26.1
|
|
|
—
|
|
|
Expenses associated
with proxy matter
|
—
|
|
|
—
|
|
|
—
|
|
|
44.2
|
|
|
Expenses associated
with Gary-Williams acquisition (2)
|
—
|
|
|
2.0
|
|
|
—
|
|
|
10.3
|
|
|
Adjustments included
in noncontrolling interest
|
25.9
|
|
|
(0.4)
|
|
|
45.7
|
|
|
(1.7)
|
|
|
Adjusted
EBITDA
|
$
|
42.4
|
|
|
$
|
470.6
|
|
|
$
|
549.7
|
|
|
$
|
1,063.1
|
|
Adjusted Petroleum and Nitrogen Fertilizer EBITDA represents
operating income adjusted for FIFO impacts (favorable) unfavorable;
share-based compensation, non-cash; major scheduled turnaround
expenses; current period settlements on derivative contracts; loss
on disposition of fixed assets; depreciation and amortization and
other income (expense). We present Adjusted EBITDA by operating
segment because it is the starting point for CVR Refining's and CVR
Partner's available cash for distribution. Adjusted EBITDA by
operating segment is not a recognized term under GAAP and should
not be substituted for operating income as a measure of
performance. Management believes that Adjusted EBITDA by operating
segment enables investors to better understand CVR Refining's and
CVR Partner's ability to make distributions to their common
unitholders, evaluate our ongoing operating results and allows for
greater transparency in reviewing our overall financial,
operational and economic performance. Adjusted EBITDA presented by
other companies may not be comparable to our presentation, since
each company may define these terms differently. Below is a
reconciliation of operating income to adjusted EBITDA for the
petroleum and nitrogen fertilizer segments for the three and nine
months ended September 30, 2013 and
2012:
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Petroleum:
|
|
|
|
|
|
|
|
|
Petroleum operating
income
|
$
|
23.4
|
|
|
$
|
507.5
|
|
|
$
|
588.1
|
|
|
$
|
891.2
|
|
|
FIFO impacts
(favorable), unfavorable
|
(54.3)
|
|
|
(50.9)
|
|
|
(83.3)
|
|
|
54.3
|
|
|
Share-based
compensation, non-cash
|
2.1
|
|
|
2.3
|
|
|
8.3
|
|
|
8.8
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
11.1
|
|
|
—
|
|
|
34.6
|
|
|
Current period
settlements on derivative contracts (1)
|
33.9
|
|
|
(53.2)
|
|
|
(3.9)
|
|
|
(80.4)
|
|
|
Depreciation and
amortization
|
28.8
|
|
|
27.5
|
|
|
85.2
|
|
|
80.4
|
|
|
Other income
(expense)
|
—
|
|
|
(0.1)
|
|
|
0.1
|
|
|
0.8
|
|
|
Adjusted Petroleum
EBITDA
|
$
|
33.9
|
|
|
$
|
444.2
|
|
|
$
|
594.5
|
|
|
$
|
989.7
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer
operating income
|
$
|
21.3
|
|
|
$
|
32.3
|
|
|
$
|
95.2
|
|
|
$
|
99.8
|
|
|
Share-based
compensation, non-cash
|
0.3
|
|
|
1.2
|
|
|
2.3
|
|
|
5.2
|
|
|
Depreciation and
amortization
|
6.6
|
|
|
5.2
|
|
|
18.5
|
|
|
15.8
|
|
|
Major scheduled
turnaround expense
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
Other income,
net
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
28.2
|
|
|
$
|
39.0
|
|
|
$
|
116.1
|
|
|
$
|
121.1
|
|
|
|
|
|
|
(1)
|
Represents the
portion of gain (loss) on derivatives, net related to contracts
that matured during the respective periods and settled with
counterparties. There are no premiums paid or received at inception
of the derivative contracts and upon settlement, there is no cost
recovery associated with these contracts.
|
|
|
|
(2)
|
Legal, professional
and integration expenses related to the December 2011 acquisition
of Gary-Williams.
|
Derivatives Summary. To reduce the basis risk between the
price of products for Group 3 and that of the NYMEX associated with
selling forward derivative contracts for NYMEX crack spreads, the
Petroleum segment may enter into basis swap positions to lock the
price difference. If the difference between the price of products
on the NYMEX and Group 3 (or some other price benchmark as the
Petroleum segment may deem appropriate) is different than the value
contracted in the swap, then the Petroleum segment will receive
from or owe to the counterparty the difference on each unit of
product contracted in the swap, thereby completing the locking of
the margin. From time to time the Petroleum segment holds various
NYMEX positions through a third-party clearing house. In addition,
the Petroleum segment enters into commodity swap contracts. The
physical volumes are not exchanged and these contracts are net
settled with cash.
The table below summarizes open commodity derivatives positions
as of September 30, 2013. The
positions are primarily in the form of 'crack spread' swap
agreements with financial counterparties, wherein the Petroleum
segment will receive the fixed prices noted below. As of
September 30, 2013, the open
commodity derivative positions below were comprised of
approximately 70.9% for distillate crack swaps, 25.5% for gasoline
crack swaps and 3.6% for 2-1-1 crack swaps.
|
|
|
Commodity
Swaps
|
|
Barrels
|
|
Fixed
Price(1)
|
|
Fourth Quarter
2013
|
|
4,650,000
|
|
|
$
|
28.01
|
|
|
|
|
|
|
|
First Quarter
2014
|
|
4,125,000
|
|
|
29.36
|
|
|
Second Quarter
2014
|
|
4,050,000
|
|
|
27.39
|
|
|
Third Quarter
2014
|
|
4,200,000
|
|
|
26.99
|
|
|
Fourth Quarter
2014
|
|
3,600,000
|
|
|
27.93
|
|
|
|
|
|
|
|
Total
|
|
20,625,000
|
|
|
$
|
27.94
|
|
|
|
(1) Weighted-average price of all positions for period
indicated.
SOURCE CVR Energy, Inc.