SUGAR LAND, Texas, Feb. 20, 2014 /PRNewswire/ -- CVR Energy,
Inc. (NYSE: CVI) today announced full year 2013 net income of
$370.7 million, or $4.27 per diluted share, on net sales of
$8,985.8 million, compared to net
income for the full year 2012 of $378.6
million, or $4.33 per diluted
share, on net sales of $8,567.3
million. Full year 2013 adjusted EBITDA was $659.7 million compared to full year 2012
adjusted EBITDA, a non-GAAP financial measure, of $1,264.5 million.
(Logo:
http://photos.prnewswire.com/prnh/20071203/CVRLOGO)
For the fourth quarter of 2013, the company reported a net loss
of $21.7 million, or a loss of
25 cents per diluted share, on net
sales of $2,436.0 million, compared
to fourth quarter 2012 net income of $40.2
million, or 46 cents per
diluted share, on net sales of $1,880.8
million. Impacting 2013 fourth quarter net income was a net
loss on derivatives of $115.9
million, which included a gain on current period settled
derivatives of $10.3 million, and an
unfavorable first-in, first-out (FIFO) accounting impact of
$62.0 million. Derivative losses were
primarily the result of wider crack spreads at the end of the
fourth quarter on open commodity swap positions as of Dec. 31, 2013. The majority of the commodity swap
positions will be settled at various times in 2014.
Fourth quarter 2013 adjusted EBITDA was $110.0 million compared to adjusted EBITDA of
$210.3 million for the same period a
year earlier.
"Both of our businesses had excellent operational performance in
the fourth quarter," said Jack
Lipinski, CVR Energy's chief executive officer. "Our
petroleum subsidiary, CVR Refining, had record combined crude
throughput rates for the quarter. Our fertilizer subsidiary, CVR
Partners, posted high on-stream rates and record UAN production for
the quarter and year."
The company also announced a fourth quarter 2013 cash dividend
of 75 cents per share. The dividend,
as declared by CVR Energy's Board of Directors, will be paid on
March 10, 2014, to stockholders of
record on March 3, 2014.
Today, CVR Refining announced a 2013 fourth quarter cash
distribution of 45 cents per common
unit, and CVR Partners announced a 2013 fourth quarter cash
distribution of 43 cents per common
unit.
"We continue to return cash to stockholders through quarterly
dividends," Lipinski said. "CVR Energy's fourth quarter cash
dividend of 75 cents per share brings
the cumulative cash dividends paid or declared for 2013 to
$15 per share."
Petroleum Business
The petroleum business,
which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported fourth quarter
2013 operating income of $14.9
million, on net sales of $2,360.9
million, compared to operating income of $121.3 million, on net sales of $1,816.2 million in the fourth quarter of
2012.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $11.48 in the 2013 fourth quarter, compared to
$25.93 during the same period in
2012. Direct operating expenses per barrel sold, exclusive of
depreciation and amortization, for the 2013 fourth quarter was
$4.27, compared to $11.29 in the fourth quarter of 2012. Fourth
quarter 2012 direct operating expenses and throughputs were
negatively impacted by a major scheduled turnaround at the
Wynnewood refinery.
Fourth quarter 2013 throughputs of crude oil and all other
feedstocks and blendstocks totaled 216,876 bpd, compared to fourth
quarter 2012 throughputs of crude oil and all other feedstocks and
blendstocks of 162,603 bpd.
Nitrogen Fertilizers Business
The fertilizer
business operated by CVR Partners reported fourth quarter 2013
operating income of $29.7 million on
net sales of $84.3 million, compared
to operating income of $16.0 million
on net sales of $67.6 million for the
fourth quarter of 2012.
For the fourth quarter of 2013, average realized plant gate
prices for UAN and ammonia were $253
per ton and $478 per ton,
respectively, compared to $274 per
ton and $676 per ton, respectively,
for the same period in 2012.
CVR Partners produced 98,900 tons of ammonia and purchased an
additional 12,000 tons of ammonia during the fourth quarter of
2013, of which 1,600 net tons were available for sale while the
rest was upgraded to a record 270,100 tons of UAN. In the 2012
fourth quarter, the plant produced 87,700 tons of ammonia with
35,300 net tons available for sale with the remainder upgraded to
127,300 tons of UAN. Fourth quarter 2012 production tons were
heavily impacted by a scheduled turnaround at the company's
fertilizer plant in Coffeyville,
Kan.
Cash and Debt
Consolidated cash and cash
equivalents, which included $279.8
million for CVR Refining and $85.1
million for CVR Partners, was $842.1
million at Dec. 31, 2013.
Consolidated total debt was $676.2
million at Dec. 31, 2013. The
company had no debt exclusive of CVR Refining's and CVR Partners'
debt.
Fourth Quarter 2013 Earnings Conference Call
Information
CVR Energy previously announced that it will
host its fourth quarter 2013 Earnings Conference Call for analysts
and investors on Thursday, Feb. 20,
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=97985. 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=97985. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13575656.
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, any subsequently filed Quarterly Reports on Form 10-Q
and our other SEC filings. 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.
913-982-0481
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
281-207-3550
MediaRelations@CVREnergy.com
CVR Energy, Inc.
Financial and Operational Data (all information in this
release is unaudited other than the Statements of Operations and
cash flow data for the year ended December
31, 2012 and the balance sheet data as of December 31, 2012).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except per share data)
|
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,436.0
|
|
|
$
|
1,880.8
|
|
|
$
|
8,985.8
|
|
|
$
|
8,567.3
|
|
|
Cost of product
sold
|
2,219.7
|
|
|
1,485.1
|
|
|
7,563.2
|
|
|
6,696.9
|
|
|
Direct operating
expenses
|
110.6
|
|
|
202.5
|
|
|
455.8
|
|
|
522.1
|
|
|
Selling, general and
administrative expenses
|
28.6
|
|
|
35.7
|
|
|
113.5
|
|
|
183.4
|
|
|
Depreciation and
amortization
|
37.4
|
|
|
32.6
|
|
|
142.8
|
|
|
130.0
|
|
|
Operating income
|
39.7
|
|
|
124.9
|
|
|
710.5
|
|
|
1,034.9
|
|
|
Interest expense and
other financing costs
|
(10.9)
|
|
|
(18.2)
|
|
|
(50.5)
|
|
|
(75.4)
|
|
|
Interest
income
|
0.3
|
|
|
0.3
|
|
|
1.2
|
|
|
0.9
|
|
|
Gain (loss) on
derivatives, net
|
(115.9)
|
|
|
(8.2)
|
|
|
57.1
|
|
|
(285.6)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
(37.5)
|
|
|
(26.1)
|
|
|
(37.5)
|
|
|
Other income,
net
|
7.1
|
|
|
0.2
|
|
|
13.5
|
|
|
0.9
|
|
|
Income
(loss) before income tax expense (benefit)
|
(79.7)
|
|
|
61.5
|
|
|
705.7
|
|
|
638.2
|
|
|
Income tax expense
(benefit)
|
(39.1)
|
|
|
16.7
|
|
|
183.7
|
|
|
225.6
|
|
|
Net
income (loss)
|
(40.6)
|
|
|
44.8
|
|
|
522.0
|
|
|
412.6
|
|
|
Less:
Net income (loss) attributable to noncontrolling
interest
|
(18.9)
|
|
|
4.6
|
|
|
151.3
|
|
|
34.0
|
|
|
Net
income (loss) attributable to CVR Energy stockholders
|
$
|
(21.7)
|
|
|
$
|
40.2
|
|
|
$
|
370.7
|
|
|
$
|
378.6
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
(0.25)
|
|
|
$
|
0.46
|
|
|
$
|
4.27
|
|
|
$
|
4.36
|
|
|
Diluted earnings
(loss) per share
|
$
|
(0.25)
|
|
|
$
|
0.46
|
|
|
$
|
4.27
|
|
|
$
|
4.33
|
|
|
Dividends declared
per share
|
$
|
0.75
|
|
|
$
|
—
|
|
|
$
|
14.25
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
110.0
|
|
|
$
|
210.3
|
|
|
$
|
659.7
|
|
|
$
|
1,264.5
|
|
|
Adjusted net
income*
|
$
|
61.7
|
|
|
$
|
103.8
|
|
|
$
|
348.6
|
|
|
$
|
660.1
|
|
|
Adjusted net income,
per diluted share*
|
$
|
0.71
|
|
|
$
|
1.20
|
|
|
$
|
4.01
|
|
|
$
|
7.55
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
87.4
|
|
|
|
|
|
|
|
|
|
|
|
As of December
31,
2013
|
|
As of December
31,
2012
|
|
(in
millions)
|
|
Balance Sheet
Data:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
842.1
|
|
|
$
|
896.0
|
|
|
Working
capital
|
1,230.2
|
|
|
1,135.4
|
|
|
Total
assets
|
3,665.8
|
|
|
3,610.9
|
|
|
Total debt, including
current portion
|
676.2
|
|
|
898.2
|
|
|
Total CVR
stockholders' equity
|
1,188.6
|
|
|
1,525.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
|
Operating activities
|
$
|
118.8
|
|
|
$
|
(21.2)
|
|
|
$
|
440.1
|
|
|
$
|
762.6
|
|
|
Investing activities
|
(72.9)
|
|
|
(67.1)
|
|
|
(250.3)
|
|
|
(210.7)
|
|
|
Financing activities
|
(90.9)
|
|
|
(4.0)
|
|
|
(243.7)
|
|
|
(44.2)
|
|
|
Net cash
flow
|
$
|
(45.0)
|
|
|
$
|
(92.3)
|
|
|
$
|
(53.9)
|
|
|
$
|
507.7
|
|
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 the Corporate and Other segment
(along with elimination of intersegment transactions). The
Petroleum segment includes the operations of the Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with the
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 December 31,
2013 are included in CVR Refining's press release dated
February 20, 2014. 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 December 31, 2013 are included in CVR Partners'
press release dated February 20,
2014.
The Petroleum Segment, as reported herein for the three months
ended and year ended December 31,
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
December 31, 2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,360.9
|
|
|
$
|
84.3
|
|
|
$
|
(9.2)
|
|
|
$
|
2,436.0
|
|
|
Cost of product
sold
|
|
2,209.7
|
|
|
18.9
|
|
|
(8.9)
|
|
|
2,219.7
|
|
|
Direct operating
expenses (1)
|
|
87.2
|
|
|
23.4
|
|
|
—
|
|
|
110.6
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
20.0
|
|
|
5.3
|
|
|
3.3
|
|
|
28.6
|
|
|
Depreciation and
amortization
|
|
29.1
|
|
|
7.0
|
|
|
1.3
|
|
|
37.4
|
|
|
Operating income (loss)
|
|
$
|
14.9
|
|
|
$
|
29.7
|
|
|
$
|
(4.9)
|
|
|
$
|
39.7
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
63.7
|
|
|
$
|
7.9
|
|
|
$
|
1.3
|
|
|
$
|
72.9
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2013
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,683.5
|
|
|
$
|
323.7
|
|
|
$
|
(21.4)
|
|
|
$
|
8,985.8
|
|
|
Cost of product
sold
|
|
7,526.7
|
|
|
58.1
|
|
|
(21.6)
|
|
|
7,563.2
|
|
|
Direct operating
expenses (1)
|
|
361.7
|
|
|
94.1
|
|
|
—
|
|
|
455.8
|
|
|
Major scheduled
turnaround expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
|
77.8
|
|
|
21.0
|
|
|
14.7
|
|
|
113.5
|
|
|
Depreciation and
amortization
|
|
114.3
|
|
|
25.6
|
|
|
2.9
|
|
|
142.8
|
|
|
Operating income (loss)
|
|
$
|
603.0
|
|
|
$
|
124.9
|
|
|
$
|
(17.4)
|
|
|
$
|
710.5
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
204.5
|
|
|
$
|
43.8
|
|
|
$
|
8.2
|
|
|
$
|
256.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
Three Months Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,816.2
|
|
|
$
|
67.6
|
|
|
$
|
(3.0)
|
|
|
$
|
1,880.8
|
|
|
Cost of product
sold
|
|
1,476.5
|
|
|
11.5
|
|
|
(2.9)
|
|
|
1,485.1
|
|
|
Direct operating
expenses (1)
|
|
84.2
|
|
|
24.6
|
|
|
—
|
|
|
108.8
|
|
|
Major scheduled
turnaround expenses
|
|
89.1
|
|
|
4.6
|
|
|
—
|
|
|
93.7
|
|
|
Selling, general and
administrative
|
|
17.8
|
|
|
6.0
|
|
|
11.9
|
|
|
35.7
|
|
|
Depreciation and
amortization
|
|
27.3
|
|
|
4.9
|
|
|
0.4
|
|
|
32.6
|
|
|
Operating income (loss)
|
|
$
|
121.3
|
|
|
$
|
16.0
|
|
|
$
|
(12.4)
|
|
|
$
|
124.9
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
37.4
|
|
|
$
|
24.7
|
|
|
$
|
5.0
|
|
|
$
|
67.1
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2012
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,281.5
|
|
|
$
|
302.3
|
|
|
$
|
(16.5)
|
|
|
$
|
8,567.3
|
|
|
Cost of product
sold
|
|
6,667.3
|
|
|
46.1
|
|
|
(16.5)
|
|
|
6,696.9
|
|
|
Direct operating
expenses (1)
|
|
302.8
|
|
|
90.8
|
|
|
—
|
|
|
393.6
|
|
|
Major scheduled
turnaround expenses
|
|
123.7
|
|
|
4.8
|
|
|
—
|
|
|
128.5
|
|
|
Selling, general and
administrative
|
|
67.6
|
|
|
24.1
|
|
|
91.7
|
|
|
183.4
|
|
|
Depreciation and
amortization
|
|
107.6
|
|
|
20.7
|
|
|
1.7
|
|
|
130.0
|
|
|
Operating income (loss)
|
|
$
|
1,012.5
|
|
|
$
|
115.8
|
|
|
$
|
(93.4)
|
|
|
$
|
1,034.9
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
120.0
|
|
|
$
|
82.2
|
|
|
$
|
10.0
|
|
|
$
|
212.2
|
|
|
|
|
|
|
|
|
(1)
|
Excluding
turnaround expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
|
December 31,
2013
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
279.8
|
|
|
$
|
85.1
|
|
|
$
|
477.2
|
|
|
$
|
842.1
|
|
|
Total
assets
|
|
2,533.3
|
|
|
593.5
|
|
|
539.0
|
|
|
3,665.8
|
|
|
Total debt, including
current portion
|
|
582.7
|
|
|
125.0
|
|
|
(31.5)
|
|
|
676.2
|
|
|
|
|
|
|
|
|
|
|
|
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 operated by CVR Refining, LP, of
which we own a majority interest and serve as general partner, and
the 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
December 31, 2013 are included in CVR
Refining's press release dated February 20,
2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except operating statistics)
|
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,360.9
|
|
|
$
|
1,816.2
|
|
|
$
|
8,683.5
|
|
|
$
|
8,281.5
|
|
|
Cost of product
sold
|
2,209.7
|
|
|
1,476.5
|
|
|
7,526.7
|
|
|
6,667.3
|
|
|
Refining
margin*
|
151.2
|
|
|
339.7
|
|
|
1,156.8
|
|
|
1,614.2
|
|
|
Direct operating
expenses
|
87.2
|
|
|
84.2
|
|
|
361.7
|
|
|
302.8
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
89.1
|
|
|
—
|
|
|
123.7
|
|
|
Depreciation and
amortization
|
29.1
|
|
|
27.3
|
|
|
114.3
|
|
|
107.6
|
|
|
Gross
profit*
|
34.9
|
|
|
139.1
|
|
|
680.8
|
|
|
1,080.1
|
|
|
Selling, general and
administrative expenses
|
20.0
|
|
|
17.8
|
|
|
77.8
|
|
|
67.6
|
|
|
Operating income
|
$
|
14.9
|
|
|
$
|
121.3
|
|
|
$
|
603.0
|
|
|
$
|
1,012.5
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
213.2
|
|
|
$
|
352.6
|
|
|
$
|
1,135.5
|
|
|
$
|
1,672.6
|
|
|
|
|
|
|
|
|
|
|
Adjusted Petroleum
EBITDA*
|
$
|
117.5
|
|
|
$
|
198.2
|
|
|
$
|
712.0
|
|
|
$
|
1,178.9
|
|
|
|
|
|
|
|
|
|
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
8.14
|
|
|
$
|
24.98
|
|
|
$
|
16.90
|
|
|
$
|
26.04
|
|
|
FIFO impact (favorable) unfavorable
|
3.34
|
|
|
0.95
|
|
|
(0.31)
|
|
|
0.94
|
|
|
Refining
margin adjusted for FIFO impact*
|
11.48
|
|
|
25.93
|
|
|
16.59
|
|
|
26.98
|
|
|
Gross
profit*
|
1.88
|
|
|
10.23
|
|
|
9.94
|
|
|
17.42
|
|
|
Direct
operating expenses and major scheduled turnaround
expenses
|
4.70
|
|
|
12.75
|
|
|
5.28
|
|
|
6.88
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
4.27
|
|
|
$
|
11.29
|
|
|
$
|
5.00
|
|
|
$
|
6.38
|
|
|
Barrels sold (barrels
per day)
|
222,140
|
|
|
166,917
|
|
|
198,142
|
|
|
182,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Petroleum Segment
Summary Refining Throughput and Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
155,326
|
|
|
71.6
|
%
|
|
112,113
|
|
|
68.9
|
%
|
|
149,147
|
|
|
75.4
|
%
|
|
130,414
|
|
|
72.4
|
%
|
|
Medium
|
22,834
|
|
|
10.5
|
%
|
|
20,508
|
|
|
12.6
|
%
|
|
19,151
|
|
|
9.7
|
%
|
|
21,334
|
|
|
11.8
|
%
|
|
Heavy
sour
|
23,614
|
|
|
10.9
|
%
|
|
15,194
|
|
|
9.3
|
%
|
|
19,270
|
|
|
9.8
|
%
|
|
17,608
|
|
|
9.8
|
%
|
|
Total
crude oil throughput
|
201,774
|
|
|
93.0
|
%
|
|
147,815
|
|
|
90.8
|
%
|
|
187,568
|
|
|
94.9
|
%
|
|
169,356
|
|
|
94.0
|
%
|
|
All
other feedstocks and blendstocks
|
15,102
|
|
|
7.0
|
%
|
|
14,788
|
|
|
9.2
|
%
|
|
10,121
|
|
|
5.1
|
%
|
|
10,791
|
|
|
6.0
|
%
|
|
Total
throughput
|
216,876
|
|
|
100.0
|
%
|
|
162,603
|
|
|
100.0
|
%
|
|
197,689
|
|
|
100.0
|
%
|
|
180,147
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
109,902
|
|
|
50.2
|
%
|
|
82,855
|
|
|
50.6
|
%
|
|
94,561
|
|
|
47.7
|
%
|
|
89,787
|
|
|
49.9
|
%
|
|
Distillate
|
90,572
|
|
|
41.3
|
%
|
|
64,577
|
|
|
39.5
|
%
|
|
82,089
|
|
|
41.4
|
%
|
|
72,804
|
|
|
40.6
|
%
|
|
Other
(excluding internally produced fuel)
|
18,689
|
|
|
8.5
|
%
|
|
16,284
|
|
|
9.9
|
%
|
|
21,617
|
|
|
10.9
|
%
|
|
17,262
|
|
|
9.5
|
%
|
|
Total
refining production (excluding internally produced fuel)
|
219,163
|
|
|
100.0
|
%
|
|
163,716
|
|
|
100.0
|
%
|
|
198,267
|
|
|
100.0
|
%
|
|
179,853
|
|
|
100.0
|
%
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
2.40
|
|
|
|
|
$
|
2.62
|
|
|
|
|
$
|
2.72
|
|
|
|
|
$
|
2.86
|
|
|
|
|
Distillate
|
2.96
|
|
|
|
|
3.13
|
|
|
|
|
3.02
|
|
|
|
|
3.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
97.61
|
|
|
$
|
88.23
|
|
|
$
|
98.05
|
|
|
$
|
94.15
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
WTI less
WTS (light/medium sour)
|
4.14
|
|
|
9.29
|
|
|
2.64
|
|
|
5.40
|
|
|
WTI less
WCS (heavy sour)
|
31.66
|
|
|
27.07
|
|
|
24.58
|
|
|
22.53
|
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
|
Gasoline
|
14.14
|
|
|
26.63
|
|
|
21.44
|
|
|
28.55
|
|
|
Heating
Oil
|
28.02
|
|
|
40.00
|
|
|
27.60
|
|
|
32.94
|
|
|
NYMEX
2-1-1 Crack Spread
|
21.08
|
|
|
33.32
|
|
|
24.52
|
|
|
30.75
|
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
|
Gasoline
|
(10.95)
|
|
|
(4.82)
|
|
|
(4.54)
|
|
|
(3.11)
|
|
|
Ultra
Low Sulfur Diesel
|
(2.65)
|
|
|
2.57
|
|
|
0.58
|
|
|
2.17
|
|
|
PADD II Group 3
Product Crack:
|
|
|
|
|
|
|
|
|
Gasoline
|
3.19
|
|
|
21.82
|
|
|
16.90
|
|
|
25.45
|
|
|
Ultra
Low Sulfur Diesel
|
25.36
|
|
|
42.57
|
|
|
28.18
|
|
|
35.11
|
|
|
PADD II Group 3
2-1-1
|
14.28
|
|
|
32.19
|
|
|
22.54
|
|
|
30.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except operating statistics)
|
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,536.8
|
|
|
$
|
1,548.6
|
|
|
$
|
5,370.8
|
|
|
$
|
5,692.4
|
|
|
Cost of product
sold
|
1,442.2
|
|
|
1,238.3
|
|
|
4,648.6
|
|
|
4,566.0
|
|
|
Refining
margin*
|
94.6
|
|
|
310.3
|
|
|
722.2
|
|
|
1,126.4
|
|
|
Direct operating
expenses
|
48.7
|
|
|
54.4
|
|
|
219.4
|
|
|
189.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
21.2
|
|
|
Depreciation and
amortization
|
17.9
|
|
|
17.5
|
|
|
70.8
|
|
|
69.6
|
|
|
Gross
profit*
|
$
|
28.0
|
|
|
$
|
238.4
|
|
|
$
|
432.0
|
|
|
$
|
846.5
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
142.8
|
|
|
$
|
321.9
|
|
|
$
|
710.0
|
|
|
$
|
1,164.5
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
8.41
|
|
|
$
|
27.07
|
|
|
$
|
17.90
|
|
|
$
|
26.81
|
|
|
FIFO
impact (favorable) unfavorable
|
4.28
|
|
|
1.01
|
|
|
(0.30)
|
|
|
0.91
|
|
|
Refining
margin adjusted for FIFO impact*
|
12.69
|
|
|
28.08
|
|
|
17.60
|
|
|
27.72
|
|
|
Gross
profit*
|
2.49
|
|
|
20.80
|
|
|
10.71
|
|
|
20.15
|
|
|
Direct
operating expenses and major scheduled turnaround
expenses
|
4.33
|
|
|
4.75
|
|
|
5.44
|
|
|
5.01
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
3.78
|
|
|
$
|
4.20
|
|
|
$
|
5.00
|
|
|
$
|
4.66
|
|
|
Barrels sold (barrels
per day)
|
139,891
|
|
|
140,943
|
|
|
120,166
|
|
|
123,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Coffeyville
Refinery Throughput and Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
98,180
|
|
|
73.8
|
%
|
|
93,692
|
|
|
67.5
|
%
|
|
90,818
|
|
|
77.1
|
%
|
|
91,580
|
|
|
74.3
|
%
|
|
Medium
|
453
|
|
|
0.3
|
%
|
|
15,684
|
|
|
11.3
|
%
|
|
453
|
|
|
0.4
|
%
|
|
5,601
|
|
|
4.6
|
%
|
|
Heavy
sour
|
23,614
|
|
|
17.8
|
%
|
|
15,194
|
|
|
10.9
|
%
|
|
19,270
|
|
|
16.3
|
%
|
|
17,608
|
|
|
14.3
|
%
|
|
Total
crude oil throughput
|
122,247
|
|
|
91.9
|
%
|
|
124,570
|
|
|
89.7
|
%
|
|
110,541
|
|
|
93.8
|
%
|
|
114,789
|
|
|
93.2
|
%
|
|
All other feedstocks
and blendstocks
|
10,773
|
|
|
8.1
|
%
|
|
14,259
|
|
|
10.3
|
%
|
|
7,253
|
|
|
6.2
|
%
|
|
8,412
|
|
|
6.8
|
%
|
|
Total
throughput
|
133,020
|
|
|
100.0
|
%
|
|
138,829
|
|
|
100.0
|
%
|
|
117,794
|
|
|
100.0
|
%
|
|
123,201
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
67,406
|
|
|
49.3
|
%
|
|
71,259
|
|
|
50.5
|
%
|
|
56,262
|
|
|
46.8
|
%
|
|
61,998
|
|
|
49.6
|
%
|
|
Distillate
|
57,280
|
|
|
41.9
|
%
|
|
57,382
|
|
|
40.7
|
%
|
|
50,353
|
|
|
41.9
|
%
|
|
52,429
|
|
|
41.9
|
%
|
|
Other
(excluding internally produced fuel)
|
11,943
|
|
|
8.8
|
%
|
|
12,457
|
|
|
8.8
|
%
|
|
13,499
|
|
|
11.3
|
%
|
|
10,629
|
|
|
8.5
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
136,629
|
|
|
100.0
|
%
|
|
141,098
|
|
|
100.0
|
%
|
|
120,114
|
|
|
100.0
|
%
|
|
125,056
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except operating statistics)
|
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
823.0
|
|
|
$
|
266.5
|
|
|
$
|
3,308.4
|
|
|
$
|
2,587.6
|
|
|
Cost of product
sold
|
767.3
|
|
|
236.4
|
|
|
2,877.5
|
|
|
2,101.4
|
|
|
Refining
margin*
|
55.7
|
|
|
30.1
|
|
|
430.9
|
|
|
486.2
|
|
|
Direct operating
expenses
|
38.5
|
|
|
30.1
|
|
|
142.4
|
|
|
113.7
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
89.1
|
|
|
—
|
|
|
102.5
|
|
|
Depreciation and
amortization
|
9.9
|
|
|
8.8
|
|
|
38.6
|
|
|
34.5
|
|
|
Gross
profit (loss)*
|
$
|
7.3
|
|
|
$
|
(97.9)
|
|
|
$
|
249.9
|
|
|
$
|
235.5
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
69.6
|
|
|
$
|
31.5
|
|
|
$
|
421.7
|
|
|
$
|
506.5
|
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
7.62
|
|
|
$
|
14.04
|
|
|
$
|
15.33
|
|
|
$
|
24.34
|
|
|
FIFO
impact (favorable) unfavorable
|
1.89
|
|
|
0.63
|
|
|
(0.33)
|
|
|
1.01
|
|
|
Refining
margin adjusted for FIFO impact*
|
9.51
|
|
|
14.67
|
|
|
15.00
|
|
|
25.35
|
|
|
Gross
profit (loss)*
|
1.00
|
|
|
(45.81)
|
|
|
8.89
|
|
|
11.79
|
|
|
Direct
operating expenses and major scheduled turnaround
expenses
|
5.27
|
|
|
55.76
|
|
|
5.06
|
|
|
10.83
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
$
|
5.09
|
|
|
$
|
49.90
|
|
|
$
|
5.00
|
|
|
$
|
9.96
|
|
|
Barrels sold (barrels
per day)
|
82,249
|
|
|
25,974
|
|
|
77,976
|
|
|
59,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Wynnewood Refinery
Throughput and Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(barrels per
day)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
57,146
|
|
|
68.1
|
%
|
|
18,421
|
|
|
77.5
|
%
|
|
58,329
|
|
|
73.0
|
%
|
|
38,834
|
|
|
68.2
|
%
|
|
Medium
|
22,381
|
|
|
26.7
|
%
|
|
4,824
|
|
|
20.3
|
%
|
|
18,698
|
|
|
23.4
|
%
|
|
15,733
|
|
|
27.6
|
%
|
|
Heavy
sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
Total
crude oil throughput
|
79,527
|
|
|
94.8
|
%
|
|
23,245
|
|
|
97.8
|
%
|
|
77,027
|
|
|
96.4
|
%
|
|
54,567
|
|
|
95.8
|
%
|
|
All other feedstocks
and blendstocks
|
4,329
|
|
|
5.2
|
%
|
|
529
|
|
|
2.2
|
%
|
|
2,868
|
|
|
3.6
|
%
|
|
2,379
|
|
|
4.2
|
%
|
|
Total
throughput
|
83,856
|
|
|
100.0
|
%
|
|
23,774
|
|
|
100.0
|
%
|
|
79,895
|
|
|
100.0
|
%
|
|
56,946
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
42,496
|
|
|
51.5
|
%
|
|
11,596
|
|
|
51.3
|
%
|
|
38,299
|
|
|
49.0
|
%
|
|
27,789
|
|
|
50.6
|
%
|
|
Distillate
|
33,292
|
|
|
40.3
|
%
|
|
7,195
|
|
|
31.8
|
%
|
|
31,736
|
|
|
40.6
|
%
|
|
20,375
|
|
|
37.2
|
%
|
|
Other
(excluding internally produced fuel)
|
6,746
|
|
|
8.2
|
%
|
|
3,827
|
|
|
16.9
|
%
|
|
8,118
|
|
|
10.4
|
%
|
|
6,633
|
|
|
12.2
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
82,534
|
|
|
100.0
|
%
|
|
22,618
|
|
|
100.0
|
%
|
|
78,153
|
|
|
100.0
|
%
|
|
54,797
|
|
|
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 December 31, 2013 are
included in CVR Partners' press release dated February 20, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
84.3
|
|
|
$
|
67.6
|
|
|
$
|
323.7
|
|
|
$
|
302.3
|
|
|
Cost of product
sold
|
18.9
|
|
|
11.5
|
|
|
58.1
|
|
|
46.1
|
|
|
Direct operating
expenses
|
23.4
|
|
|
24.6
|
|
|
94.1
|
|
|
90.8
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
4.6
|
|
|
—
|
|
|
4.8
|
|
|
Selling, general and
administrative expenses
|
5.3
|
|
|
6.0
|
|
|
21.0
|
|
|
24.1
|
|
|
Depreciation and
amortization
|
7.0
|
|
|
4.9
|
|
|
25.6
|
|
|
20.7
|
|
|
Operating income
|
$
|
29.7
|
|
|
$
|
16.0
|
|
|
$
|
124.9
|
|
|
$
|
115.8
|
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
36.6
|
|
|
$
|
27.1
|
|
|
$
|
152.8
|
|
|
$
|
148.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Production (thousand
tons):
|
|
|
|
|
|
|
|
|
Ammonia
(gross produced)(1)
|
98.9
|
|
|
87.7
|
|
|
402.0
|
|
|
390.0
|
|
|
Ammonia
(net available for sale)(1)(2)
|
1.6
|
|
|
35.3
|
|
|
37.9
|
|
|
124.6
|
|
|
UAN
|
270.1
|
|
|
127.3
|
|
|
930.6
|
|
|
643.8
|
|
|
|
|
|
|
|
|
|
|
Pet coke consumed
(thousand tons)
|
126.8
|
|
|
109.7
|
|
|
487.0
|
|
|
487.3
|
|
|
Pet coke (cost per
ton)
|
$
|
29
|
|
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
33
|
|
|
|
|
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
2.6
|
|
|
38.4
|
|
|
40.5
|
|
|
127.8
|
|
|
UAN
|
266.5
|
|
|
133.0
|
|
|
904.6
|
|
|
643.5
|
|
|
|
|
|
|
|
|
|
|
Product pricing
(plant gate) (dollars per ton)(3):
|
|
|
|
|
|
|
|
|
Ammonia
|
$
|
478
|
|
|
$
|
676
|
|
|
$
|
643
|
|
|
$
|
613
|
|
|
UAN
|
$
|
253
|
|
|
$
|
274
|
|
|
$
|
282
|
|
|
$
|
303
|
|
|
|
|
|
|
|
|
|
|
On-stream
factor(4):
|
|
|
|
|
|
|
|
|
Gasification
|
100.0
|
%
|
|
79.0
|
%
|
|
95.6
|
%
|
|
92.6
|
%
|
|
Ammonia
|
99.5
|
%
|
|
76.6
|
%
|
|
94.4
|
%
|
|
91.1
|
%
|
|
UAN
|
98.8
|
%
|
|
68.6
|
%
|
|
91.9
|
%
|
|
86.4
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
Ammonia -- Southern
Plains (dollars per ton)
|
$
|
483
|
|
|
$
|
748
|
|
|
$
|
581
|
|
|
$
|
647
|
|
|
UAN -- Corn belt
(dollars per ton)
|
$
|
287
|
|
|
$
|
361
|
|
|
$
|
337
|
|
|
$
|
369
|
|
|
|
|
|
|
|
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 completion
of the UAN expansion project in February 2013, the Nitrogen
Fertilizer segment now upgrades substantially all of the ammonia it
produces 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 12,000 tons and 17,000 tons of ammonia, which was
upgraded to UAN during the three months and year ended December 31,
2013, respectively.
|
|
|
|
(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 Linde air
separation unit outage and the major scheduled turnaround, the
on-stream factors for the three months ended December 31, 2012
would have been 99.7% for gasifier, 98.8% for ammonia and 91.5% for
UAN.
|
Excluding the impact of the UAN expansion coming on-line, the
planned downtime associated with replacement of damaged catalyst,
the unplanned Linde air separation unit outages and the unplanned
downtime associated with weather issues, the on-stream factors for
the year ended December 31, 2013
would have been 99.5% for gasifier, 98.9% for ammonia and 98.0% for
UAN. Excluding the impact of the Linde air separation unit outage
and the major scheduled turnaround, the on-stream factors for the
year ended December 31, 2012 would
have been 98.1% for gasifier, 97.1% for ammonia and 92.8% for
UAN.
Use of Non-GAAP Financial Measures
To supplement the
Company's 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
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in millions,
except per share data)
|
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income:
|
|
|
|
|
|
|
|
|
Income (loss) before
income tax expense (benefit)
|
$
|
(79.7)
|
|
|
$
|
61.5
|
|
|
$
|
705.7
|
|
|
$
|
638.2
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
62.0
|
|
|
12.9
|
|
|
(21.3)
|
|
|
58.4
|
|
|
Share-based
compensation
|
4.7
|
|
|
10.6
|
|
|
18.4
|
|
|
39.1
|
|
|
Loss on extinguishment
of debt
|
—
|
|
|
37.5
|
|
|
26.1
|
|
|
37.5
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
93.7
|
|
|
—
|
|
|
128.5
|
|
|
(Gain) loss on
derivatives, net
|
115.9
|
|
|
8.2
|
|
|
(57.1)
|
|
|
285.6
|
|
|
Current period
settlement on derivative contracts (1)
|
10.3
|
|
|
(57.1)
|
|
|
6.4
|
|
|
(137.6)
|
|
|
Expenses associated
with proxy matters
|
—
|
|
|
—
|
|
|
—
|
|
|
44.2
|
|
|
Expenses associated
with the acquisition of Gary-Williams (2)
|
—
|
|
|
0.7
|
|
|
—
|
|
|
11.0
|
|
|
Adjusted net income
before income tax expense (benefit) and noncontrolling
interest
|
113.2
|
|
|
168.0
|
|
|
678.2
|
|
|
1,104.9
|
|
|
Adjusted net income
attributed to noncontrolling interest
|
(36.0)
|
|
|
(6.5)
|
|
|
(160.4)
|
|
|
(37.5)
|
|
|
Income tax expense, as
adjusted
|
(15.5)
|
|
|
(57.7)
|
|
|
(169.2)
|
|
|
(407.3)
|
|
|
Adjusted
net income attributable to CVR Energy stockholders
|
$
|
61.7
|
|
|
$
|
103.8
|
|
|
$
|
348.6
|
|
|
$
|
660.1
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share
|
$
|
0.71
|
|
|
$
|
1.20
|
|
|
$
|
4.01
|
|
|
$
|
7.55
|
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between the Petroleum segment's 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 the refineries'
performance as a general indication of the amount above their cost
of product sold that they are able to sell refined products. Our
calculation of refining margin may differ from similar calculations
of other companies in the 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 the Petroleum segment's 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
the Petroleum segment's 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 the
refineries' performance as a general indication of the amount above
their cost of product sold (taking into account the impact of the
utilization of FIFO) that they are able to sell refined products.
Our calculation of refining margin adjusted for FIFO impact may
differ from calculations of other companies in the industry,
thereby limiting its usefulness as a comparative measure. Under the
FIFO accounting method, changes in crude oil prices can cause
fluctuations in the inventory valuation of 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 the
Petroleum segment's 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 crude throughput barrel is calculated as gross profit as
derived above divided by the 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 the refineries' performance and the Petroleum segment's
ongoing operating results. Our calculation of gross profit may
differ from similar calculations of other companies in the
industry, thereby limiting its usefulness as a comparative
measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss)
before (i) interest expense and other financing costs, net of
interest income, (ii) income tax expense (benefit) 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 acquisition
of Gary-Williams. 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 (loss) to
EBITDA and EBITDA to Adjusted EBITDA for the three months and years
ended December 31, 2013 and 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
(21.7)
|
|
|
$
|
40.2
|
|
|
$
|
370.7
|
|
|
$
|
378.6
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest
expense and other financing costs, net of interest
income
|
10.6
|
|
|
17.9
|
|
|
49.3
|
|
|
74.5
|
|
|
Income
tax expense (benefit)
|
(39.1)
|
|
|
16.7
|
|
|
183.7
|
|
|
225.6
|
|
|
Depreciation and amortization
|
37.4
|
|
|
32.6
|
|
|
142.8
|
|
|
130.0
|
|
|
EBITDA adjustments
included in noncontrolling interest
|
(15.2)
|
|
|
(1.7)
|
|
|
(50.1)
|
|
|
(7.4)
|
|
|
EBITDA
|
(28.0)
|
|
|
105.7
|
|
|
696.4
|
|
|
801.3
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO
impacts, (favorable) unfavorable
|
62.0
|
|
|
12.9
|
|
|
(21.3)
|
|
|
58.4
|
|
|
Share-based compensation
|
4.7
|
|
|
10.6
|
|
|
18.4
|
|
|
39.1
|
|
|
Major
scheduled turnaround expenses
|
—
|
|
|
93.7
|
|
|
—
|
|
|
128.5
|
|
|
(Gain)
loss on derivatives, net
|
115.9
|
|
|
8.2
|
|
|
(57.1)
|
|
|
285.6
|
|
|
Current
period settlement on derivative contracts (1)
|
10.3
|
|
|
(57.1)
|
|
|
6.4
|
|
|
(137.6)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
37.5
|
|
|
26.1
|
|
|
37.5
|
|
|
Expenses
associated with proxy matter
|
—
|
|
|
—
|
|
|
—
|
|
|
44.2
|
|
|
Expenses
associated with the acquisition of Gary-Williams (2)
|
—
|
|
|
0.7
|
|
|
—
|
|
|
11.0
|
|
|
Adjustments included in noncontrolling interest
|
(54.9)
|
|
|
(1.9)
|
|
|
(9.2)
|
|
|
(3.5)
|
|
|
Adjusted
EBITDA
|
$
|
110.0
|
|
|
$
|
210.3
|
|
|
$
|
659.7
|
|
|
$
|
1,264.5
|
|
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
Partners' calculation of 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 Partners' 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 months and
years ended December 31, 2013 and
2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Petroleum:
|
|
|
|
|
|
|
|
|
Petroleum operating
income
|
$
|
14.9
|
|
|
$
|
121.3
|
|
|
$
|
603.0
|
|
|
$
|
1,012.5
|
|
|
FIFO
impacts (favorable), unfavorable
|
62.0
|
|
|
12.9
|
|
|
(21.3)
|
|
|
58.4
|
|
|
Share-based compensation, non-cash
|
1.2
|
|
|
4.7
|
|
|
9.5
|
|
|
13.5
|
|
|
Major
scheduled turnaround expenses
|
—
|
|
|
89.1
|
|
|
—
|
|
|
123.7
|
|
|
Current
period settlements on derivative contracts (1)
|
10.3
|
|
|
(57.1)
|
|
|
6.4
|
|
|
(137.6)
|
|
|
Depreciation and amortization
|
29.1
|
|
|
27.3
|
|
|
114.3
|
|
|
107.6
|
|
|
Other
income, net
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.8
|
|
|
Adjusted Petroleum
EBITDA
|
$
|
117.5
|
|
|
$
|
198.2
|
|
|
$
|
712.0
|
|
|
$
|
1,178.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
millions)
|
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
|
Nitrogen Fertilizer
operating income
|
$
|
29.7
|
|
|
$
|
16.0
|
|
|
$
|
124.9
|
|
|
$
|
115.8
|
|
|
Share-based compensation, non-cash
|
(0.1)
|
|
|
1.6
|
|
|
2.2
|
|
|
6.8
|
|
|
Depreciation and amortization
|
7.0
|
|
|
4.9
|
|
|
25.6
|
|
|
20.7
|
|
|
Major
scheduled turnaround expenses
|
—
|
|
|
4.6
|
|
|
—
|
|
|
4.8
|
|
|
Other
income, net
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
36.6
|
|
|
$
|
27.1
|
|
|
$
|
152.8
|
|
|
$
|
148.2
|
|
|
|
|
|
|
|
|
|
|
(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.
|
Derivatives Summary. The Petroleum segment enters into
commodity swap contracts through crack spread swap agreements with
financial counterparties to fix the spread risk between the
refineries' crude oil purchases and the refined products the
refineries produce for sale. Through these swaps, the Petroleum
segment will sell a fixed differential for the value between the
selected refined product benchmark and the benchmark crude oil
price, thereby locking in a margin for a portion of the refineries'
production. The physical volumes are not exchanged and these
contracts are net settled with cash. From time to time, the
Petroleum segment holds various NYMEX positions through a
third-party clearing house.
The table below summarizes the Petroleum segment's open
commodity swap positions as of December 31,
2013. The positions are primarily in the form of crack
spread swap agreements with financial counterparties, wherein the
Petroleum segment has locked in differentials at the fixed prices
noted below. As of December 31, 2013
the open commodity swap positions below were comprised of
approximately 73.5% for distillate crack swaps and 26.5% for
gasoline crack swaps.
|
|
|
|
|
|
|
|
|
|
Commodity
Swaps
|
|
Barrels
|
|
Fixed
Price(1)
|
|
First Quarter
2014
|
|
5,175,000
|
|
|
$
|
29.89
|
|
|
Second Quarter
2014
|
|
6,000,000
|
|
|
28.19
|
|
|
Third Quarter
2014
|
|
6,000,000
|
|
|
26.78
|
|
|
Fourth Quarter
2014
|
|
5,100,000
|
|
|
27.25
|
|
|
|
|
|
|
|
First Quarter
2015
|
|
525,000
|
|
|
32.09
|
|
|
Second Quarter
2015
|
|
150,000
|
|
|
29.83
|
|
|
Third Quarter
2015
|
|
150,000
|
|
|
29.83
|
|
|
Fourth Quarter
2015
|
|
150,000
|
|
|
29.83
|
|
|
|
|
|
|
|
Total
|
|
23,250,000
|
|
|
$
|
28.12
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Weighted-average
price of all positions for period indicated.
|
SOURCE CVR Energy, Inc.