SUGAR LAND, Texas, Feb. 18, 2016 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced full year 2015 net income of
$169.6 million, or $1.95 per diluted share, on net sales of
$5,432.5 million, compared to net
income for full year 2014 of $173.9
million, or $2.00 per diluted
share, on net sales of $9,109.5
million. Full year 2015 adjusted EBITDA, a non-GAAP
financial measure, was $498.8 million
compared to full year 2014 adjusted EBITDA of $473.5 million.
For the fourth quarter of 2015, the company reported a net loss
of $45.0 million, or a loss of
52 cents per diluted share, on net
sales of $1,010.6 million, compared
to a fourth quarter 2014 net loss of $44.4
million, or a loss of 51 cents
per diluted share, on net sales of $1,841.8
million. Net income for the 2015 fourth quarter was
negatively affected by the downtime associated with a major
scheduled turnaround at CVR Refining's Coffeyville refinery.
Fourth quarter 2015 adjusted EBITDA was $35.6 million compared to adjusted EBITDA of
$81.7 million for the same period a
year earlier.
"Our fourth quarter results were impacted by the downtime
associated with the scheduled turnaround at CVR Refining's
Coffeyville refinery in addition
to narrowing crack spreads," said Jack
Lipinski, CVR Energy's chief executive officer. "At CVR
Partners, the Coffeyville
fertilizer plant posted record UAN and ammonia production for the
quarter."
CVR Energy also announced a fourth quarter 2015 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
March 7, 2016, to stockholders of
record on Feb. 29, 2016.
CVR Energy's fourth quarter cash dividend brings the cumulative
cash dividends paid or declared for the 2015 full year to
$2.00 per share.
Today, CVR Partners announced a 2015 fourth quarter cash
distribution of 27 cents per common
unit. CVR Refining announced that it will not pay a cash
distribution for the 2015 fourth quarter.
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported a
fourth quarter 2015 operating loss of $135.5
million, on net sales of $948.3
million, compared to a fourth quarter 2014 operating loss of
$113.3 million, on net sales of
$1,772.8 million.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $8.96 in the 2015 fourth quarter, compared to
$11.28 during the same period in
2014. Direct operating expenses, including major scheduled
turnaround expenses, per barrel sold, exclusive of depreciation and
amortization, for the 2015 fourth quarter was $12.34, compared to $5.76 in the fourth quarter of 2014.
Fourth quarter 2015 throughputs of crude oil and all other
feedstocks and blendstocks totaled 172,364 barrels per day (bpd),
compared to fourth quarter 2014 throughputs of crude oil and all
other feedstocks and blendstocks of 212,263 bpd.
Nitrogen Fertilizers Business
The fertilizer business, operated by CVR Partners, reported
fourth quarter 2015 operating income of $20.4 million on net sales of $66.0 million, compared to operating income of
$26.5 million on net sales of
$74.4 million for the fourth quarter
of 2014.
For the fourth quarter of 2015, average realized gate prices for
UAN and ammonia were $221 per ton and
$479 per ton, respectively, compared
to $247 per ton and $547 per ton, respectively, for the same period
in 2014.
CVR Partners produced 116,100 tons of ammonia during the fourth
quarter of 2015, of which 6,100 net tons were available for sale
while the rest was upgraded to 270,500 tons of UAN. In the 2014
fourth quarter, the plant produced 105,900 tons of ammonia and
purchased an additional 3,900 tons of ammonia, of which 4,400 net
tons were available for sale and the remainder was upgraded to
259,600 tons of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$187.3 million for CVR Refining and
$50.0 million for CVR Partners, was
$765.1 million at Dec. 31, 2015. Consolidated total debt was
$673.5 million at Dec. 31, 2015. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Fourth Quarter 2015 Earnings Conference Call
CVR Energy previously announced that it will host its fourth
quarter 2015 Earnings Conference Call for analysts and investors on
Thursday, Feb. 18, at 3 p.m. Eastern. The Earnings Conference Call may
also include discussion of company developments, forward-looking
information and other material information about business and
financial matters.
The Earnings Conference Call will be broadcast live over the
Internet at
https://www.webcaster4.com/Webcast/Page/1003/13082. 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
https://www.webcaster4.com/Webcast/Page/1003/13082. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13629396.
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 Contact:
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 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, 2014 and the balance sheet data as
of December 31, 2014).
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Three Months
Ended
December
31,
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Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except per share data)
|
Consolidated
Statement of Operations Data:
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Net sales
|
$
|
1,010.6
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|
|
$
|
1,841.8
|
|
|
$
|
5,432.5
|
|
|
$
|
9,109.5
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|
Cost of product
sold
|
847.9
|
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|
1,733.4
|
|
|
4,190.4
|
|
|
8,066.0
|
|
Direct operating
expenses
|
212.1
|
|
|
134.7
|
|
|
584.7
|
|
|
515.1
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Flood insurance
recovery
|
—
|
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—
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(27.3)
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|
—
|
|
Selling, general and
administrative expenses
|
20.4
|
|
|
23.5
|
|
|
99.0
|
|
|
109.7
|
|
Depreciation and
amortization
|
40.9
|
|
|
40.8
|
|
|
164.1
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|
|
154.4
|
|
Operating income
(loss)
|
(110.7)
|
|
|
(90.6)
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|
|
421.6
|
|
|
264.3
|
|
Interest expense and
other financing costs
|
(11.9)
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|
(11.2)
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|
|
(48.4)
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|
|
(40.0)
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|
Interest
income
|
0.2
|
|
|
0.2
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|
|
1.0
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|
|
0.9
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|
Gain (loss) on
derivatives, net
|
23.6
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|
|
14.5
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(28.6)
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|
185.6
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Other income
(expense), net
|
0.2
|
|
|
(3.6)
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|
36.7
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|
(3.7)
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Income (loss) before
income tax expense (benefit)
|
(98.6)
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(90.7)
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|
382.3
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|
|
407.1
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Income tax expense
(benefit)
|
(20.7)
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(21.0)
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|
|
84.5
|
|
|
97.7
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|
Net income
(loss)
|
(77.9)
|
|
|
(69.7)
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|
|
297.8
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|
|
309.4
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Less: Net income
(loss) attributable to noncontrolling interest
|
(32.9)
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(25.3)
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|
128.2
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|
135.5
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|
Net income (loss)
attributable to CVR Energy stockholders
|
$
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(45.0)
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|
$
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(44.4)
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$
|
169.6
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|
|
$
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173.9
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Basic earnings (loss)
per share
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$
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(0.52)
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$
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(0.51)
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$
|
1.95
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|
|
$
|
2.00
|
|
Diluted earnings
(loss) per share
|
$
|
(0.52)
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|
|
$
|
(0.51)
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|
|
$
|
1.95
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|
|
$
|
2.00
|
|
Dividends declared
per share
|
$
|
0.50
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|
|
$
|
0.75
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|
|
$
|
2.00
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|
|
$
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5.00
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
35.6
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|
|
$
|
81.7
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|
|
$
|
498.8
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|
$
|
473.5
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Adjusted net income
(loss)*
|
$
|
(4.3)
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|
|
$
|
24.4
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|
|
$
|
235.1
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|
|
$
|
218.4
|
|
Adjusted net income
(loss), per diluted share*
|
$
|
(0.05)
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|
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$
|
0.28
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|
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$
|
2.71
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$
|
2.51
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Weighted-average
common shares outstanding:
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Basic
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86.8
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|
86.8
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|
86.8
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86.8
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Diluted
|
86.8
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|
86.8
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|
86.8
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|
86.8
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|
|
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|
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As of
December 31,
2015
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As of
December 31,
2014
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(in
millions)
|
Balance Sheet
Data:
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Cash and cash
equivalents
|
$
|
765.1
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|
|
$
|
753.7
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Working
capital
|
789.9
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|
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1,033.0
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Total
assets
|
3,305.8
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|
|
3,462.5
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Total debt, including
current portion
|
673.5
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|
674.9
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Total CVR
stockholders' equity
|
984.1
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988.1
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Three Months
Ended
December
31,
|
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Year
Ended
December
31,
|
|
2015
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2014
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2015
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2014
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(in
millions)
|
Cash Flow
Data:
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Net cash flow
provided by (used in):
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Operating
activities
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$
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(75.5)
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$
|
109.5
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|
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$
|
536.8
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|
$
|
640.3
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Investing
activities
|
(76.8)
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(47.0)
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(150.6)
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|
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(296.6)
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Financing
activities
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(94.6)
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(101.9)
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(374.8)
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(432.1)
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Net cash
flow
|
$
|
(246.9)
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|
$
|
(39.4)
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$
|
11.4
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$
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(88.4)
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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 is operated by
CVR Refining, LP ("CVR Refining"), in which we own a majority
interest as well as serve as the general partner. The Petroleum
segment includes the operations of the Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with the
crude oil gathering and pipeline systems. Detailed operating
results for the Petroleum segment for the quarter and year ended
December 31, 2015 are included in CVR
Refining's press release dated February 18, 2016. The Nitrogen
Fertilizer segment is operated by CVR Partners, LP ("CVR
Partners"), in which we own a majority interest as well as serve 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 and
year ended December 31, 2015 are
included in CVR Partners' press release dated February 18,
2016.
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Petroleum (CVR
Refining)
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Nitrogen
Fertilizer (CVR Partners)
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Corporate and
Other
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Consolidated
|
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(in
millions)
|
Three Months Ended
December 31, 2015
|
|
|
|
|
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Net sales
|
|
$
|
948.3
|
|
|
$
|
66.0
|
|
|
$
|
(3.7)
|
|
|
$
|
1,010.6
|
|
Cost of product
sold
|
|
842.8
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|
|
9.5
|
|
|
(4.4)
|
|
|
847.9
|
|
Direct operating
expenses(1)
|
|
103.8
|
|
|
23.3
|
|
|
0.1
|
|
|
127.2
|
|
Major
scheduled turnaround expenses
|
|
84.9
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|
|
—
|
|
|
—
|
|
|
84.9
|
|
Flood insurance
recovery(2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Selling, general and
administrative
|
|
20.2
|
|
|
5.6
|
|
|
(5.4)
|
|
|
20.4
|
|
Depreciation and
amortization
|
|
32.1
|
|
|
7.2
|
|
|
1.6
|
|
|
40.9
|
|
Operating income (loss)
|
|
$
|
(135.5)
|
|
|
$
|
20.4
|
|
|
$
|
4.4
|
|
|
$
|
(110.7)
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
71.1
|
|
|
$
|
4.6
|
|
|
$
|
1.1
|
|
|
$
|
76.8
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2015
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
5,161.9
|
|
|
$
|
289.2
|
|
|
$
|
(18.6)
|
|
|
$
|
5,432.5
|
|
Cost of product
sold
|
|
4,143.6
|
|
|
65.2
|
|
|
(18.4)
|
|
|
4,190.4
|
|
Direct operating
expenses(1)
|
|
376.3
|
|
|
99.1
|
|
|
0.1
|
|
|
475.5
|
|
Major scheduled
turnaround expenses
|
|
102.2
|
|
|
7.0
|
|
|
—
|
|
|
109.2
|
|
Flood insurance
recovery(2)
|
|
(27.3)
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
Selling, general and
administrative
|
|
75.2
|
|
|
20.8
|
|
|
3.0
|
|
|
99.0
|
|
Depreciation and
amortization
|
|
130.2
|
|
|
28.4
|
|
|
5.5
|
|
|
164.1
|
|
Operating income (loss)
|
|
$
|
361.7
|
|
|
$
|
68.7
|
|
|
$
|
(8.8)
|
|
|
$
|
421.6
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
194.7
|
|
|
$
|
17.0
|
|
|
$
|
7.0
|
|
|
$
|
218.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
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(in
millions)
|
Three Months Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,772.8
|
|
|
$
|
74.4
|
|
|
$
|
(5.4)
|
|
|
$
|
1,841.8
|
|
Cost of product
sold
|
|
1,723.8
|
|
|
15.4
|
|
|
(5.8)
|
|
|
1,733.4
|
|
Direct operating
expenses(1)
|
|
111.6
|
|
|
21.7
|
|
|
0.1
|
|
|
133.4
|
|
Major scheduled
turnaround expenses
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
Selling, general and
administrative
|
|
16.8
|
|
|
3.8
|
|
|
2.9
|
|
|
23.5
|
|
Depreciation and
amortization
|
|
32.6
|
|
|
7.0
|
|
|
1.2
|
|
|
40.8
|
|
Operating income (loss)
|
|
$
|
(113.3)
|
|
|
$
|
26.5
|
|
|
$
|
(3.8)
|
|
|
$
|
(90.6)
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
37.1
|
|
|
$
|
7.6
|
|
|
$
|
2.3
|
|
|
$
|
47.0
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2014
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
8,829.7
|
|
|
$
|
298.7
|
|
|
$
|
(18.9)
|
|
|
$
|
9,109.5
|
|
Cost of product
sold
|
|
8,013.4
|
|
|
72.0
|
|
|
(19.4)
|
|
|
8,066.0
|
|
Direct operating
expenses(1)
|
|
409.2
|
|
|
98.9
|
|
|
0.2
|
|
|
508.3
|
|
Major scheduled
turnaround expenses
|
|
6.8
|
|
|
—
|
|
|
—
|
|
|
6.8
|
|
Selling, general and
administrative
|
|
70.6
|
|
|
17.7
|
|
|
21.4
|
|
|
109.7
|
|
Depreciation and
amortization
|
|
122.5
|
|
|
27.3
|
|
|
4.6
|
|
|
154.4
|
|
Operating income (loss)
|
|
$
|
207.2
|
|
|
$
|
82.8
|
|
|
$
|
(25.7)
|
|
|
$
|
264.3
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
$
|
191.3
|
|
|
$
|
21.1
|
|
|
$
|
6.0
|
|
|
$
|
218.4
|
|
|
|
|
|
|
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
|
(2)
|
Represents an
insurance recovery from Coffeyville Resources Refining and
Marketing, LLC's ("CRRM") environmental insurance carriers as a
result of the flood and crude oil discharge at the Coffeyville
refinery on June/July 2007.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum (CVR
Refining)
|
|
Nitrogen
Fertilizer (CVR Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
(in
millions)
|
December 31,
2015
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
187.3
|
|
|
$
|
50.0
|
|
|
$
|
527.8
|
|
|
$
|
765.1
|
|
Total
assets
|
|
2,195.2
|
|
|
536.5
|
|
|
574.1
|
|
|
3,305.8
|
|
Total debt, including
current portion
|
|
580.0
|
|
|
125.0
|
|
|
(31.5)
|
|
|
673.5
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
370.2
|
|
|
$
|
79.9
|
|
|
$
|
303.6
|
|
|
$
|
753.7
|
|
Total
assets
|
|
2,417.8
|
|
|
578.8
|
|
|
465.9
|
|
|
3,462.5
|
|
Total debt, including
current portion
|
|
581.4
|
|
|
125.0
|
|
|
(31.5)
|
|
|
674.9
|
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operated by CVR Refining, of which
we own a majority interest and serve as the 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 and
year ended December 31, 2015 are
included in CVR Refining's press release dated February 18,
2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
948.3
|
|
|
$
|
1,772.8
|
|
|
$
|
5,161.9
|
|
|
$
|
8,829.7
|
|
Cost of product
sold
|
842.8
|
|
|
1,723.8
|
|
|
4,143.6
|
|
|
8,013.4
|
|
Direct operating
expenses
|
103.8
|
|
|
111.6
|
|
|
376.3
|
|
|
409.2
|
|
Major scheduled
turnaround expenses
|
84.9
|
|
|
1.3
|
|
|
102.2
|
|
|
6.8
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Selling, general and
administrative expenses
|
20.2
|
|
|
16.8
|
|
|
75.2
|
|
|
70.6
|
|
Depreciation and
amortization
|
32.1
|
|
|
32.6
|
|
|
130.2
|
|
|
122.5
|
|
Operating income
(loss)
|
(135.5)
|
|
|
(113.3)
|
|
|
361.7
|
|
|
207.2
|
|
Interest expense and
other financing costs
|
(10.5)
|
|
|
(9.7)
|
|
|
(42.6)
|
|
|
(34.2)
|
|
Interest
income
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|
0.3
|
|
Gain (loss) on
derivatives, net
|
23.6
|
|
|
14.5
|
|
|
(28.6)
|
|
|
185.6
|
|
Other income
(expense), net
|
0.1
|
|
|
(0.1)
|
|
|
0.3
|
|
|
(0.2)
|
|
Income (loss) before
income tax expense
|
(122.2)
|
|
|
(108.5)
|
|
|
291.2
|
|
|
358.7
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net income
(loss)
|
$
|
(122.2)
|
|
|
$
|
(108.5)
|
|
|
$
|
291.2
|
|
|
$
|
358.7
|
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
105.5
|
|
|
$
|
49.0
|
|
|
$
|
1,018.3
|
|
|
$
|
816.3
|
|
Gross profit
(loss)*
|
$
|
(115.3)
|
|
|
$
|
(96.5)
|
|
|
$
|
436.9
|
|
|
$
|
277.8
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
132.1
|
|
|
$
|
203.6
|
|
|
$
|
1,078.6
|
|
|
$
|
977.1
|
|
Adjusted Petroleum
EBITDA*
|
$
|
16.4
|
|
|
$
|
104.6
|
|
|
$
|
602.0
|
|
|
$
|
621.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(dollars per
barrel)
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
7.16
|
|
|
$
|
2.71
|
|
|
$
|
14.45
|
|
|
$
|
11.38
|
|
FIFO impact
(favorable) unfavorable
|
1.80
|
|
|
8.57
|
|
|
0.86
|
|
|
2.24
|
|
Refining margin
adjusted for FIFO impact*
|
8.96
|
|
|
11.28
|
|
|
15.31
|
|
|
13.62
|
|
Gross profit
(loss)*
|
(7.82)
|
|
|
(5.35)
|
|
|
6.20
|
|
|
3.87
|
|
Gross profit (loss)
excluding flood insurance recovery*
|
(7.82)
|
|
|
(5.35)
|
|
|
5.81
|
|
|
3.87
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
12.81
|
|
|
6.26
|
|
|
6.79
|
|
|
5.80
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
7.04
|
|
|
6.19
|
|
|
5.34
|
|
|
5.70
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
12.34
|
|
|
5.76
|
|
|
6.40
|
|
|
5.44
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
6.79
|
|
|
$
|
5.69
|
|
|
$
|
5.04
|
|
|
$
|
5.35
|
|
Barrels sold (barrels
per day)
|
166,168
|
|
|
213,256
|
|
|
204,708
|
|
|
209,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Petroleum Segment
Summary Refining Throughput and Production Data
(bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
151,215
|
|
|
87.7
|
%
|
|
181,063
|
|
|
85.3
|
%
|
|
176,097
|
|
|
86.0
|
%
|
|
179,059
|
|
|
86.2
|
%
|
Medium
|
209
|
|
|
0.1
|
%
|
|
3,383
|
|
|
1.6
|
%
|
|
2,460
|
|
|
1.2
|
%
|
|
2,022
|
|
|
1.0
|
%
|
Heavy sour
|
8,715
|
|
|
5.1
|
%
|
|
11,700
|
|
|
5.5
|
%
|
|
14,520
|
|
|
7.1
|
%
|
|
15,464
|
|
|
7.4
|
%
|
Total crude oil
throughput
|
160,139
|
|
|
92.9
|
%
|
|
196,146
|
|
|
92.4
|
%
|
|
193,077
|
|
|
94.3
|
%
|
|
196,545
|
|
|
94.6
|
%
|
All other feedstocks
and blendstocks
|
12,225
|
|
|
7.1
|
%
|
|
16,117
|
|
|
7.6
|
%
|
|
11,672
|
|
|
5.7
|
%
|
|
11,284
|
|
|
5.4
|
%
|
Total
throughput
|
172,364
|
|
|
100.0
|
%
|
|
212,263
|
|
|
100.0
|
%
|
|
204,749
|
|
|
100.0
|
%
|
|
207,829
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
80,111
|
|
|
46.3
|
%
|
|
107,158
|
|
|
50.1
|
%
|
|
99,961
|
|
|
48.5
|
%
|
|
102,275
|
|
|
48.9
|
%
|
Distillate
|
70,201
|
|
|
40.6
|
%
|
|
88,119
|
|
|
41.2
|
%
|
|
85,953
|
|
|
41.7
|
%
|
|
87,639
|
|
|
41.9
|
%
|
Other (excluding
internally produced fuel)
|
22,638
|
|
|
13.1
|
%
|
|
18,526
|
|
|
8.7
|
%
|
|
20,074
|
|
|
9.8
|
%
|
|
19,149
|
|
|
9.2
|
%
|
Total refining production (excluding internally produced
fuel)
|
172,950
|
|
|
100.0
|
%
|
|
213,803
|
|
|
100.0
|
%
|
|
205,988
|
|
|
100.0
|
%
|
|
209,063
|
|
|
100.0
|
%
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.32
|
|
|
|
|
$
|
1.93
|
|
|
|
|
$
|
1.61
|
|
|
|
|
$
|
2.53
|
|
|
|
Distillate
|
1.34
|
|
|
|
|
2.40
|
|
|
|
|
1.62
|
|
|
|
|
2.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
42.16
|
|
|
$
|
73.20
|
|
|
$
|
48.76
|
|
|
$
|
92.91
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
WTI less
WTS (light/medium sour)
|
0.35
|
|
|
2.19
|
|
|
(0.28)
|
|
|
5.95
|
|
WTI less
WCS (heavy sour)
|
14.45
|
|
|
15.42
|
|
|
13.20
|
|
|
18.48
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
Gasoline
|
12.79
|
|
|
9.83
|
|
|
19.89
|
|
|
17.29
|
|
Heating
Oil
|
15.21
|
|
|
24.12
|
|
|
20.93
|
|
|
23.59
|
|
NYMEX 2-1-1 Crack
Spread
|
14.00
|
|
|
16.97
|
|
|
20.41
|
|
|
20.44
|
|
PADD II Group 3
Product Basis:
|
|
|
|
|
|
|
|
Gasoline
|
0.26
|
|
|
(2.92)
|
|
|
(2.12)
|
|
|
(4.45)
|
|
Ultra
Low Sulfur Diesel
|
(0.44)
|
|
|
3.51
|
|
|
(2.02)
|
|
|
0.75
|
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
|
|
|
|
Gasoline
|
13.05
|
|
|
6.91
|
|
|
17.76
|
|
|
12.84
|
|
Ultra
Low Sulfur Diesel
|
14.76
|
|
|
27.63
|
|
|
18.91
|
|
|
24.34
|
|
PADD II Group 3
2-1-1
|
13.91
|
|
|
17.27
|
|
|
18.34
|
|
|
18.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except operating statistics)
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
522.6
|
|
|
$
|
1,214.2
|
|
|
$
|
3,220.6
|
|
|
$
|
5,755.5
|
|
Cost of product
sold
|
490.5
|
|
|
1,186.3
|
|
|
2,626.1
|
|
|
5,254.9
|
|
Refining
margin*
|
32.1
|
|
|
27.9
|
|
|
594.5
|
|
|
500.6
|
|
Direct operating
expenses
|
53.5
|
|
|
54.4
|
|
|
209.1
|
|
|
223.6
|
|
Major scheduled
turnaround expenses
|
84.9
|
|
|
—
|
|
|
102.2
|
|
|
5.5
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Depreciation and
amortization
|
17.5
|
|
|
19.2
|
|
|
72.1
|
|
|
73.6
|
|
Gross profit
(loss)*
|
$
|
(123.8)
|
|
|
$
|
(45.7)
|
|
|
$
|
238.4
|
|
|
$
|
197.9
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
49.5
|
|
|
$
|
139.7
|
|
|
$
|
632.5
|
|
|
$
|
615.8
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
4.52
|
|
|
$
|
2.39
|
|
|
$
|
14.37
|
|
|
$
|
11.46
|
|
FIFO impact
(favorable) unfavorable
|
2.45
|
|
|
9.58
|
|
|
0.92
|
|
|
2.64
|
|
Refining margin
adjusted for FIFO impact*
|
6.97
|
|
|
11.97
|
|
|
15.29
|
|
|
14.10
|
|
Gross profit
(loss)*
|
(17.42)
|
|
|
(3.91)
|
|
|
5.77
|
|
|
4.53
|
|
Gross profit (loss)
excluding flood insurance recovery*
|
(17.42)
|
|
|
(3.91)
|
|
|
5.11
|
|
|
4.53
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
19.48
|
|
|
4.66
|
|
|
7.53
|
|
|
5.24
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
7.53
|
|
|
4.66
|
|
|
5.06
|
|
|
5.12
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
18.46
|
|
|
4.10
|
|
|
6.92
|
|
|
4.73
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
7.14
|
|
|
$
|
4.10
|
|
|
$
|
4.65
|
|
|
$
|
4.61
|
|
Barrels sold (barrels
per day)
|
81,484
|
|
|
144,151
|
|
|
123,279
|
|
|
132,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
68,452
|
|
|
80.7
|
%
|
|
111,791
|
|
|
80.2
|
%
|
|
96,727
|
|
|
79.5
|
%
|
|
103,018
|
|
|
80.0
|
%
|
Medium
|
57
|
|
|
0.1
|
%
|
|
3,383
|
|
|
2.4
|
%
|
|
2,058
|
|
|
1.7
|
%
|
|
1,222
|
|
|
1.0
|
%
|
Heavy sour
|
8,715
|
|
|
10.3
|
%
|
|
11,700
|
|
|
8.4
|
%
|
|
14,520
|
|
|
11.9
|
%
|
|
15,464
|
|
|
12.0
|
%
|
Total crude oil
throughput
|
77,224
|
|
|
91.1
|
%
|
|
126,874
|
|
|
91.0
|
%
|
|
113,305
|
|
|
93.1
|
%
|
|
119,704
|
|
|
93.0
|
%
|
All other feedstocks
and blendstocks
|
7,540
|
|
|
8.9
|
%
|
|
12,510
|
|
|
9.0
|
%
|
|
8,400
|
|
|
6.9
|
%
|
|
9,047
|
|
|
7.0
|
%
|
Total
throughput
|
84,764
|
|
|
100.0
|
%
|
|
139,384
|
|
|
100.0
|
%
|
|
121,705
|
|
|
100.0
|
%
|
|
128,751
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
36,493
|
|
|
42.1
|
%
|
|
71,045
|
|
|
49.8
|
%
|
|
57,815
|
|
|
46.5
|
%
|
|
64,002
|
|
|
48.6
|
%
|
Distillate
|
35,588
|
|
|
41.0
|
%
|
|
60,448
|
|
|
42.4
|
%
|
|
53,136
|
|
|
42.7
|
%
|
|
56,381
|
|
|
42.8
|
%
|
Other (excluding
internally produced fuel)
|
14,655
|
|
|
16.9
|
%
|
|
11,206
|
|
|
7.8
|
%
|
|
13,503
|
|
|
10.8
|
%
|
|
11,314
|
|
|
8.6
|
%
|
Total
refining production (excluding internally produced fuel)
|
86,736
|
|
|
100.0
|
%
|
|
142,699
|
|
|
100.0
|
%
|
|
124,454
|
|
|
100.0
|
%
|
|
131,697
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except operating statistics)
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
424.6
|
|
|
$
|
557.5
|
|
|
$
|
1,936.9
|
|
|
$
|
3,069.8
|
|
Cost of product
sold
|
351.8
|
|
|
537.1
|
|
|
1,516.3
|
|
|
2,758.1
|
|
Refining
margin*
|
72.8
|
|
|
20.4
|
|
|
420.6
|
|
|
311.7
|
|
Direct operating
expenses
|
49.2
|
|
|
57.1
|
|
|
166.2
|
|
|
185.5
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
1.3
|
|
|
—
|
|
|
1.3
|
|
Depreciation and
amortization
|
12.6
|
|
|
11.5
|
|
|
50.2
|
|
|
41.8
|
|
Gross profit
(loss)*
|
$
|
11.0
|
|
|
$
|
(49.5)
|
|
|
$
|
204.2
|
|
|
$
|
83.1
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
82.0
|
|
|
$
|
63.2
|
|
|
$
|
442.9
|
|
|
$
|
357.3
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
9.54
|
|
|
$
|
3.20
|
|
|
$
|
14.44
|
|
|
$
|
11.11
|
|
FIFO impact
(favorable) unfavorable
|
1.20
|
|
|
6.72
|
|
|
0.77
|
|
|
1.63
|
|
Refining margin
adjusted for FIFO impact*
|
10.74
|
|
|
9.92
|
|
|
15.21
|
|
|
12.74
|
|
Gross profit
(loss)*
|
1.44
|
|
|
(7.78)
|
|
|
7.01
|
|
|
2.96
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
6.44
|
|
|
9.17
|
|
|
5.71
|
|
|
6.66
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
6.44
|
|
|
8.96
|
|
|
5.71
|
|
|
6.61
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
6.31
|
|
|
9.19
|
|
|
5.59
|
|
|
6.66
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
6.31
|
|
|
$
|
8.98
|
|
|
$
|
5.59
|
|
|
$
|
6.61
|
|
Barrels sold (barrels
per day)
|
84,684
|
|
|
69,105
|
|
|
81,429
|
|
|
76,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
82,763
|
|
|
94.5
|
%
|
|
69,272
|
|
|
95.1
|
%
|
|
79,370
|
|
|
95.6
|
%
|
|
76,041
|
|
|
96.2
|
%
|
Medium
|
152
|
|
|
0.2
|
%
|
|
—
|
|
|
—
|
%
|
|
402
|
|
|
0.5
|
%
|
|
800
|
|
|
1.0
|
%
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
Total crude oil
throughput
|
82,915
|
|
|
94.7
|
%
|
|
69,272
|
|
|
95.1
|
%
|
|
79,772
|
|
|
96.1
|
%
|
|
76,841
|
|
|
97.2
|
%
|
All other feedstocks
and blendstocks
|
4,685
|
|
|
5.3
|
%
|
|
3,607
|
|
|
4.9
|
%
|
|
3,272
|
|
|
3.9
|
%
|
|
2,237
|
|
|
2.8
|
%
|
Total
throughput
|
87,600
|
|
|
100.0
|
%
|
|
72,879
|
|
|
100.0
|
%
|
|
83,044
|
|
|
100.0
|
%
|
|
79,078
|
|
|
100.0
|
%
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
43,618
|
|
|
50.6
|
%
|
|
36,113
|
|
|
50.8
|
%
|
|
42,146
|
|
|
51.7
|
%
|
|
38,273
|
|
|
49.5
|
%
|
Distillate
|
34,613
|
|
|
40.1
|
%
|
|
27,671
|
|
|
38.9
|
%
|
|
32,817
|
|
|
40.2
|
%
|
|
31,258
|
|
|
40.4
|
%
|
Other (excluding
internally produced fuel)
|
7,983
|
|
|
9.3
|
%
|
|
7,320
|
|
|
10.3
|
%
|
|
6,571
|
|
|
8.1
|
%
|
|
7,835
|
|
|
10.1
|
%
|
Total
refining production (excluding internally produced fuel)
|
86,214
|
|
|
100.0
|
%
|
|
71,104
|
|
|
100.0
|
%
|
|
81,534
|
|
|
100.0
|
%
|
|
77,366
|
|
|
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 the 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 and year ended December 31,
2015 are included in CVR Partners' press release dated
February 18, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
Net sales
|
$
|
66.0
|
|
|
$
|
74.4
|
|
|
$
|
289.2
|
|
|
$
|
298.7
|
|
Cost of product
sold
|
9.5
|
|
|
15.4
|
|
|
65.2
|
|
|
72.0
|
|
Direct operating
expenses
|
23.3
|
|
|
21.7
|
|
|
99.1
|
|
|
98.9
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
Selling, general and
administrative expenses
|
5.6
|
|
|
3.8
|
|
|
20.8
|
|
|
17.7
|
|
Depreciation and
amortization
|
7.2
|
|
|
7.0
|
|
|
28.4
|
|
|
27.3
|
|
Operating income
|
20.4
|
|
|
26.5
|
|
|
68.7
|
|
|
82.8
|
|
Interest expense and
other financing costs
|
(1.8)
|
|
|
(1.7)
|
|
|
(7.0)
|
|
|
(6.7)
|
|
Other income,
net
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Income
before income tax expense
|
18.7
|
|
|
24.8
|
|
|
62.0
|
|
|
76.1
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net
income
|
$
|
18.7
|
|
|
$
|
24.8
|
|
|
$
|
62.0
|
|
|
$
|
76.1
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
28.5
|
|
|
$
|
33.5
|
|
|
$
|
106.8
|
|
|
$
|
110.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
Production volume
(thousand tons):
|
|
|
|
|
|
|
|
Ammonia
(gross produced)(1)
|
116.1
|
|
|
105.9
|
|
|
385.4
|
|
|
388.9
|
|
Ammonia
(net available for sale)(1)(2)
|
6.1
|
|
|
4.4
|
|
|
37.3
|
|
|
28.3
|
|
UAN
|
270.5
|
|
|
259.6
|
|
|
928.6
|
|
|
963.7
|
|
|
|
|
|
|
|
|
|
Pet coke consumed
(thousand tons)
|
134.1
|
|
|
130.0
|
|
|
469.9
|
|
|
489.7
|
|
Pet coke (cost per
ton)
|
$
|
23
|
|
|
$
|
27
|
|
|
$
|
25
|
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
Sales (thousand
tons):
|
|
|
|
|
|
|
|
Ammonia
|
5.4
|
|
|
9.9
|
|
|
32.3
|
|
|
24.4
|
|
UAN
|
240.7
|
|
|
236.8
|
|
|
939.5
|
|
|
951.0
|
|
|
|
|
|
|
|
|
|
Product pricing at
gate (dollars per ton)(3):
|
|
|
|
|
|
|
|
Ammonia
|
$
|
479
|
|
|
$
|
547
|
|
|
$
|
521
|
|
|
$
|
518
|
|
UAN
|
$
|
221
|
|
|
$
|
247
|
|
|
$
|
247
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
On-stream
factor(4):
|
|
|
|
|
|
|
|
Gasification
|
99.3
|
%
|
|
99.6
|
%
|
|
90.2
|
%
|
|
96.8
|
%
|
Ammonia
|
98.8
|
%
|
|
98.2
|
%
|
|
87.5
|
%
|
|
92.6
|
%
|
UAN
|
98.3
|
%
|
|
95.8
|
%
|
|
87.3
|
%
|
|
92.0
|
%
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
460
|
|
|
$
|
588
|
|
|
$
|
510
|
|
|
$
|
539
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
250
|
|
|
$
|
293
|
|
|
$
|
284
|
|
|
$
|
314
|
|
|
|
|
|
|
|
|
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 total ammonia produced, including ammonia
produced that was upgraded into UAN. 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 0 and 3,900 tons of ammonia during the three months
ended December 31, 2015 and 2014, respectively. The Nitrogen
Fertilizer segment acquired approximately 29,300 and 33,600 tons of
ammonia during the years ended December 31, 2015 and 2014,
respectively.
|
|
|
(3)
|
Product pricing at
gate represents net sales less freight revenue divided by product
sales volume in tons and is shown in order to provide a pricing
measure that is comparable across the fertilizer
industry.
|
|
|
(4)
|
On-stream factor is
the total number of hours operated divided by the total number of
hours in the reporting period and is a measure of operating
efficiency.
|
|
|
|
Excluding the impact
of the Linde air separation unit outages, the on-stream factors for
the three months ended December 31, 2015 would have been 100.0% for
gasification, 100.0% for ammonia and 99.9% for UAN.
|
|
|
|
Excluding the impact
of the full facility turnaround and the Linde air separation unit
outages, the on-stream factors for the year ended December 31, 2015
would have been 99.9% for gasification, 97.7% for ammonia and 97.6%
for UAN.
|
|
|
|
Excluding the impact
of the shutdown for installation of the waste heat boiler, pressure
swing adsorption unit upgrade and the Linde air separation unit
maintenance, the on-stream factors for the year ended December 31,
2014 would have been 98.2% for gasification, 94.3% for ammonia and
93.7% 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 the non-GAAP
financial measures 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 (loss) 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 (loss)
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. Adjusted net income (loss) per diluted
share represents adjusted net income (loss) divided by
weighted-average diluted shares outstanding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in millions,
except per share data)
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss):
|
|
|
|
|
|
|
|
Income (loss) before
income tax expense (benefit)
|
$
|
(98.6)
|
|
|
$
|
(90.7)
|
|
|
$
|
382.3
|
|
|
$
|
407.1
|
|
Adjustments:
|
|
|
|
|
|
|
|
FIFO impact (favorable) unfavorable
|
26.6
|
|
|
154.6
|
|
|
60.3
|
|
|
160.8
|
|
Share-based compensation
|
3.7
|
|
|
1.5
|
|
|
12.8
|
|
|
12.3
|
|
Major scheduled turnaround expenses
|
84.9
|
|
|
1.3
|
|
|
109.2
|
|
|
6.8
|
|
(Gain)
loss on derivatives, net
|
(23.6)
|
|
|
(14.5)
|
|
|
28.6
|
|
|
(185.6)
|
|
Current period settlement on derivative contracts(1)
|
8.1
|
|
|
29.0
|
|
|
(26.0)
|
|
|
122.2
|
|
Flood insurance recovery(2)
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Expenses associated with the Rentech Nitrogen mergers(3)
|
0.8
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Adjusted net income before income tax expense and noncontrolling
interest
|
1.9
|
|
|
81.2
|
|
|
542.2
|
|
|
523.6
|
|
Adjusted net income attributed to noncontrolling
interest
|
(0.3)
|
|
|
(32.8)
|
|
|
(179.8)
|
|
|
(178.4)
|
|
Income tax expense, as adjusted
|
(5.9)
|
|
|
(24.0)
|
|
|
(127.3)
|
|
|
(126.8)
|
|
Adjusted net income
(loss) attributable to CVR Energy stockholders
|
$
|
(4.3)
|
|
|
$
|
24.4
|
|
|
$
|
235.1
|
|
|
$
|
218.4
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per diluted share
|
$
|
(0.05)
|
|
|
$
|
0.28
|
|
|
$
|
2.71
|
|
|
$
|
2.51
|
|
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 at which they 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 Petroleum segment's Statements of
Operations. 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
impact. 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) at which 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 a favorable FIFO
impact when crude oil prices increase and an unfavorable FIFO
impact when crude oil prices decrease.
Gross profit (loss) 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, flood insurance recovery and depreciation and
amortization. Gross profit (loss) per crude throughput barrel
is calculated as gross profit (loss) as derived above divided by
the refineries' crude oil throughput volumes for the respective
periods presented. Gross profit (loss) is a non-GAAP measure that
should not be substituted for operating income (loss). 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 (loss) 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 (i) FIFO impact (favorable) unfavorable; (ii)
share-based compensation; (iii) loss on extinguishment of debt;
(iv) major scheduled turnaround expenses; (v) (gain) loss on
derivatives, net; (vi) current period settlements on derivative
contracts; (vii) flood insurance recovery and (viii) expenses
associated with the pending Rentech Nitrogen mergers. EBITDA and
Adjusted EBITDA are not recognized terms under GAAP and should not
be substituted for net income (loss) or cash flow from operations.
Management believes that EBITDA and Adjusted EBITDA enable
investors to better understand and evaluate our ongoing operating
results and allow 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, 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Net income (loss)
attributable to CVR Energy stockholders
|
$
|
(45.0)
|
|
|
$
|
(44.4)
|
|
|
$
|
169.6
|
|
|
$
|
173.9
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and other financing costs, net of interest
income
|
11.7
|
|
|
11.0
|
|
|
47.4
|
|
|
39.1
|
|
Income tax expense
(benefit)
|
(20.7)
|
|
|
(21.0)
|
|
|
84.5
|
|
|
97.7
|
|
Depreciation and
amortization
|
40.9
|
|
|
40.8
|
|
|
164.1
|
|
|
154.4
|
|
EBITDA adjustments
included in noncontrolling interest
|
(18.7)
|
|
|
(18.4)
|
|
|
(75.2)
|
|
|
(65.2)
|
|
EBITDA
|
(31.8)
|
|
|
(32.0)
|
|
|
390.4
|
|
|
399.9
|
|
Add:
|
|
|
|
|
|
|
|
FIFO
impact (favorable) unfavorable
|
26.6
|
|
|
154.6
|
|
|
60.3
|
|
|
160.8
|
|
Share-based compensation
|
3.7
|
|
|
1.5
|
|
|
12.8
|
|
|
12.3
|
|
Major
scheduled turnaround expenses
|
84.9
|
|
|
1.3
|
|
|
109.2
|
|
|
6.8
|
|
(Gain)
loss on derivatives, net
|
(23.6)
|
|
|
(14.5)
|
|
|
28.6
|
|
|
(185.6)
|
|
Current period settlement on derivative contracts(1)
|
8.1
|
|
|
29.0
|
|
|
(26.0)
|
|
|
122.2
|
|
Flood
insurance recovery(2)
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Expenses
associated with the Rentech Nitrogen mergers(3)
|
0.8
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Adjustments included in noncontrolling interest
|
(33.1)
|
|
|
(58.2)
|
|
|
(51.5)
|
|
|
(42.9)
|
|
Adjusted
EBITDA
|
$
|
35.6
|
|
|
$
|
81.7
|
|
|
$
|
498.8
|
|
|
$
|
473.5
|
|
Petroleum and Nitrogen Fertilizer EBITDA and Adjusted EBITDA.
EBITDA by operating segment represents net income (loss) before (i)
interest expense and other financing costs, net of interest income,
(ii) income tax expense and (iii) depreciation and amortization.
Adjusted EBITDA by operating segment represents EBITDA by operating
segment adjusted for (i) FIFO impact (favorable) unfavorable; (ii)
share-based compensation, non-cash; (iii) loss on extinguishment of
debt; (iv) major scheduled turnaround expenses; (v) (gain) loss on
derivatives, net; (vi) current period settlements on derivative
contracts; (vii) flood insurance recovery and (viii) expenses
associated with the pending Rentech Nitrogen mergers. 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. EBITDA and Adjusted EBITDA by operating
segment are not recognized terms under GAAP and should not be
substituted for net income (loss) as a measure of performance.
Management believes that EBITDA and Adjusted EBITDA by operating
segment enable investors to better understand CVR Refining's and
CVR Partners' ability to make distributions to their common
unitholders, help investors evaluate our ongoing operating results
and allow 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 Petroleum and Nitrogen
Fertilizer segments for the three months and years ended
December 31, 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Petroleum:
|
|
|
|
|
|
|
|
Petroleum net income
(loss)
|
$
|
(122.2)
|
|
|
$
|
(108.5)
|
|
|
$
|
291.2
|
|
|
$
|
358.7
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
10.4
|
|
|
9.6
|
|
|
42.2
|
|
|
33.9
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
32.1
|
|
|
32.6
|
|
|
130.2
|
|
|
122.5
|
|
Petroleum
EBITDA
|
(79.7)
|
|
|
(66.3)
|
|
|
463.6
|
|
|
515.1
|
|
Add:
|
|
|
|
|
|
|
|
FIFO impact
(favorable) unfavorable
|
26.6
|
|
|
154.6
|
|
|
60.3
|
|
|
160.8
|
|
Share-based
compensation, non-cash
|
0.1
|
|
|
0.5
|
|
|
0.6
|
|
|
2.3
|
|
Major scheduled
turnaround expenses
|
84.9
|
|
|
1.3
|
|
|
102.2
|
|
|
6.8
|
|
(Gain) loss on
derivatives, net
|
(23.6)
|
|
|
(14.5)
|
|
|
28.6
|
|
|
(185.6)
|
|
Current period
settlements on derivative contracts(1)
|
8.1
|
|
|
29.0
|
|
|
(26.0)
|
|
|
122.2
|
|
Flood insurance
recovery(2)
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
—
|
|
Adjusted Petroleum
EBITDA
|
$
|
16.4
|
|
|
$
|
104.6
|
|
|
$
|
602.0
|
|
|
$
|
621.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(in
millions)
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
Nitrogen Fertilizer
net income
|
$
|
18.7
|
|
|
$
|
24.8
|
|
|
$
|
62.0
|
|
|
$
|
76.1
|
|
Add:
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
1.8
|
|
|
1.7
|
|
|
7.0
|
|
|
6.7
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Depreciation and
amortization
|
7.2
|
|
|
7.0
|
|
|
28.4
|
|
|
27.3
|
|
Nitrogen
Fertilizer EBITDA
|
27.7
|
|
|
33.5
|
|
|
97.4
|
|
|
110.1
|
|
Add:
|
|
|
|
|
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.2
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
7.0
|
|
|
—
|
|
Expenses associated
with the Rentech Nitrogen mergers(3)
|
0.8
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
28.5
|
|
|
$
|
33.5
|
|
|
$
|
106.8
|
|
|
$
|
110.3
|
|
|
|
|
|
|
|
|
|
(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)
|
Represents an
insurance recovery from CRRM's environmental insurance carriers as
a result of the flood and crude oil discharge at the Coffeyville
refinery on June/July 2007.
|
|
|
(3)
|
On August 9, 2015,
CVR Partners entered into an Agreement and Plan of Merger with
Rentech Nitrogen Partners, L.P. ("Rentech Nitrogen") and Rentech
Nitrogen GP, LLC ("Rentech Nitrogen GP") with Rentech Nitrogen and
Rentech Nitrogen GP continuing as surviving entities and
wholly-owned subsidiaries of CVR Partners. The Nitrogen Fertilizer
Partnership incurred legal and other professional fees and other
merger related expenses that are referred to herein as expenses
associated with the Rentech Nitrogen mergers, which are included in
selling, general and administrative expenses for the three months
and year ended December 31, 2015.
|
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, 2015. 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, 2015 the open commodity swap positions below were
comprised of 100.0% distillate crack swaps.
|
|
|
|
|
|
|
|
|
Commodity
Swaps
|
|
Barrels
|
|
Fixed
Price(1)
|
First Quarter
2016
|
|
615,000
|
|
|
$
|
29.01
|
|
Second Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
Third Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
Fourth Quarter
2016
|
|
615,000
|
|
|
29.01
|
|
|
|
|
|
|
Total
|
|
2,460,000
|
|
|
$
|
29.01
|
|
|
|
|
|
|
|
(1)
|
Weighted-average
price of all positions for period indicated.
|
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SOURCE CVR Energy, Inc.