CVR Energy Reports Fourth Quarter and Full-Year 2019 Results and Announces Cash Dividend of 80 Cents
- Achieved year-over-year environmental, health and safety improvements.
- Completed Wynnewood’s BenFree repositioning project.
- Received Board approval for Wynnewood’s Isomerization project.
- Increased cash dividend to
$3.20 per share annualized for an industry-leading dividend yield.
For full-year 2019, the Company reported net income of
“CVR Energy delivered solid 2019 full-year and fourth quarter results, led by continuous improvement in our core values of environmental, health and safety across both our petroleum and nitrogen fertilizer segments,” said
“CVR Partners achieved year-over-year increases in net income and EBITDA and benefited from higher fertilizer sales volumes and stronger product pricing in 2019,” Lamp said. “As a result,
Petroleum
The Petroleum Segment reported fourth quarter 2019 operating income of
Refining margin per total throughput barrel was
Fourth quarter 2019 combined total throughput was approximately 213,000 barrels per day (bpd), compared to approximately 221,000 bpd of combined total throughput for the fourth quarter 2018.
For full-year 2019, operating income was
The Petroleum Segment’s refining margin per total throughput barrel for 2019 was
Nitrogen Fertilizer
The Nitrogen Fertilizer Segment reported an operating loss of
Fourth quarter 2019 average realized gate prices for urea ammonia nitrate (UAN) decreased compared to the prior year, down 2 percent to
CVR Partners’ fertilizer facilities produced a combined 180,000 tons of ammonia during the fourth quarter of 2019, of which 55,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 286,000 tons of UAN. During the fourth quarter 2018, the fertilizer facilities produced 209,000 tons of ammonia, of which 59,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 357,000 tons of UAN.
For full-year 2019, operating income was
The average realized gate price for UAN increased 15 percent to
Cash, Debt and Dividend
Consolidated cash and cash equivalents was
Fourth Quarter 2019 Earnings Conference Call
The fourth quarter and full-year 2019 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy’s website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/9nek858g. A repeat of the call can be accessed for 14 days by dialing (877) 660-6853, conference ID 13698196.
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: dividends and distributions including the timing, payment and amount (if any) thereof; improvement of crude oil optionality, market capture and reliability at our refineries; demand for spring nitrogen fertilizer application; planted corn acres; refinery throughput, direct operating expenses, capital expenditures, depreciation and amortization and turnaround expense; continued safe and reliable operations; ammonia utilization rates including impact of turnarounds; inventory adjustments; and other matters. 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. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) price volatility of crude oil, other feedstocks and refined products; the ability of
About
Headquartered in
For further information, please contact:
Investor Contact:
(281) 207-3205
InvestorRelations@CVREnergy.com
Media Relations:
(281) 207-3516
MediaRelations@CVREnergy.com
Non-GAAP Measures
Our management uses certain non-GAAP performance measures to evaluate current and past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.
Effective
The following are non-GAAP measures that continue to be presented for the year ended
EBITDA - Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.
Petroleum EBITDA and Nitrogen Fertilizer EBITDA - Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization.
Refining Margin - The difference between our Petroleum Segment net sales and cost of materials and other.
Refining Margin adjusted for Inventory Valuation Impacts - Refining Margin adjusted to exclude the impact of current period market price and volume fluctuations on crude oil and refined product inventories recognized in prior periods. We record our commodity inventories on the first-in-first-out basis. As a result, significant current period fluctuations in market prices and the volumes we hold in inventory can have favorable or unfavorable impacts on our refining margins as compared to similar metrics used by other publicly-traded companies in the refining industry.
Refining Margin and Refining Margin adjusted for Inventory Valuation Impacts, per Throughput Barrel - Refining Margin divided by the total throughput barrels during period, which is calculated as total throughput barrels per day times the number of days in the period.
Direct Operating Expenses per Throughput Barrel - Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period.
We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly-traded companies in the refining industry, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See “Non-GAAP Reconciliations” section included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.
Items or Events Impacting Comparability
Refer to the “Non-GAAP Measures” section above for discussion of the changes made to the Company’s definition of certain non-GAAP measures.
Petroleum Segment
Nitrogen Fertilizer Segment
During the fourth quarter of 2018, the Partnership recognized a $6 million business interruption insurance recovery associated with an outage at its Coffeyville Fertilizer Facility during 2017. The recovery is recorded in Other income, net.
Coffeyville Fertilizer Facility - During 2018, the Coffeyville Fertilizer Facility had a planned, full facility turnaround lasting 15 days and incurred approximately
East Dubuque Fertilizer Facility - During 2019, the East Dubuque Fertilizer Facility had a planned, full facility turnaround lasting 32 days and cost approximately
(unaudited)
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Consolidated Statement of Operations Data | |||||||||||||||
Net sales | $ | 1,569 | $ | 1,738 | $ | 6,364 | $ | 7,124 | |||||||
Operating costs and expenses: | |||||||||||||||
Cost of materials and other | 1,262 | 1,388 | 4,851 | 5,683 | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) | 136 | 127 | 533 | 517 | |||||||||||
Depreciation and amortization | 70 | 69 | 278 | 263 | |||||||||||
Cost of sales | 1,468 | 1,584 | 5,662 | 6,463 | |||||||||||
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below) | 30 | 28 | 117 | 112 | |||||||||||
Depreciation and amortization | 1 | 2 | 9 | 11 | |||||||||||
Loss (gain) on asset disposal | 1 | — | (4 | ) | 6 | ||||||||||
Operating income | 69 | 124 | 580 | 532 | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense, net | (24 | ) | (22 | ) | (102 | ) | (102 | ) | |||||||
Other income, net | 2 | 7 | 13 | 15 | |||||||||||
Income before income taxes | 47 | 109 | 491 | 445 | |||||||||||
Income tax expense | 19 | 14 | 129 | 79 | |||||||||||
Net income | 28 | 95 | 362 | 366 | |||||||||||
Less: Net (loss) income attributable to noncontrolling interest | (16 | ) | 22 | (18 | ) | 107 | |||||||||
Net income attributable to CVR Energy stockholders | $ | 44 | $ | 73 | $ | 380 | $ | 259 | |||||||
Basic and diluted earnings per share | $ | 0.44 | $ | 0.73 | $ | 3.78 | $ | 2.80 | |||||||
Dividends declared per share | $ | 0.80 | $ | 0.75 | $ | 3.05 | $ | 2.50 | |||||||
EBITDA * | $ | 142 | $ | 202 | $ | 880 | $ | 821 | |||||||
Weighted-average common shares outstanding - basic and diluted | 100.5 | 100.5 | 100.5 | 92.5 |
* See “Non-GAAP Reconciliations” section below.
Selected Balance Sheet Data:
(in millions) | December 31, 2019 | December 31, 2018 | |||||
Cash and cash equivalents | $ | 652 | $ | 668 | |||
Working capital | 695 | 797 | |||||
Total assets | 3,905 | 4,000 | |||||
Total debt and finance lease obligations | 1,195 | 1,170 | |||||
Total liabilities | 2,237 | 2,057 | |||||
Total CVR stockholders’ equity | 1,393 | 1,286 | |||||
Selected Cash Flow Data:
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | 94 | $ | 102 | $ | 747 | $ | 628 | |||||||
Investing activities | (48 | ) | (34 | ) | (121 | ) | (108 | ) | |||||||
Financing activities | (86 | ) | (102 | ) | (642 | ) | (334 | ) | |||||||
Net cash flow | $ | (40 | ) | $ | (34 | ) | $ | (16 | ) | $ | 186 | ||||
Selected Segment Data:
(in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | ||||||||
Three Months Ended December 31, 2019 | |||||||||||
Net sales | $ | 1,485 | $ | 86 | $ | 1,569 | |||||
Operating income (loss) | 82 | (9 | ) | 69 | |||||||
Net income (loss) | 81 | (25 | ) | 28 | |||||||
EBITDA * | 135 | 11 | 142 | ||||||||
Capital Expenditures (1) | |||||||||||
Maintenance | $ | 20 | $ | 7 | $ | 28 | |||||
Growth | 3 | 1 | 4 | ||||||||
Total capital expenditures | $ | 23 | $ | 9 | $ | 33 | |||||
Year Ended December 31, 2019 | |||||||||||
Net sales | $ | 5,968 | $ | 404 | $ | 6,364 | |||||
Operating income | 574 | 27 | 580 | ||||||||
Net income (loss) | 559 | (35 | ) | 362 | |||||||
EBITDA * | 788 | 107 | 880 | ||||||||
Capital Expenditures (1) | |||||||||||
Maintenance | $ | 79 | $ | 18 | $ | 102 | |||||
Growth | 10 | 2 | 12 | ||||||||
Total capital expenditures | $ | 89 | $ | 20 | $ | 114 | |||||
(in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | ||||||||
Three Months Ended December 31, 2018 | |||||||||||
Net sales | $ | 1,641 | $ | 98 | $ | 1,738 | |||||
Operating income | 122 | 8 | 124 | ||||||||
Net income (loss) | 115 | (1 | ) | 95 | |||||||
EBITDA * | 172 | 33 | 202 | ||||||||
Capital Expenditures (1) | |||||||||||
Maintenance | $ | 29 | $ | 4 | $ | 34 | |||||
Growth | 6 | — | 6 | ||||||||
Total capital expenditures | $ | 35 | $ | 4 | $ | 40 | |||||
Year Ended December 31, 2018 | |||||||||||
Net sales | $ | 6,780 | $ | 351 | $ | 7,124 | |||||
Operating income | 544 | 6 | 532 | ||||||||
Net income (loss) | 511 | (50 | ) | 366 | |||||||
EBITDA * | 748 | 84 | 821 | ||||||||
Capital Expenditures (1) | |||||||||||
Maintenance | $ | 70 | $ | 16 | $ | 89 | |||||
Growth | 19 | 3 | 22 | ||||||||
Total capital expenditures | $ | 89 | $ | 19 | $ | 111 |
* See “Non-GAAP Reconciliations” section below.
(1) Capital expenditures are shown exclusive of capitalized turnaround expenditures.
(in millions) | Petroleum | Nitrogen Fertilizer | Consolidated | ||||||||
December 31, 2019 | |||||||||||
Cash and cash equivalents | $ | 583 | $ | 37 | $ | 652 | |||||
Total assets | 3,187 | 1,138 | 3,905 | ||||||||
Total debt and finance lease obligations | 563 | 632 | 1,195 | ||||||||
December 31, 2018 | |||||||||||
Cash and cash equivalents | $ | 353 | $ | 62 | $ | 668 | |||||
Total assets | 2,453 | 1,254 | 4,000 | ||||||||
Total debt and finance lease obligations | 541 | 629 | 1,170 | ||||||||
Petroleum Segment:
Key Operating Metrics per Total Throughput Barrel
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Refining Margin * | $ | 12.47 | $ | 13.67 | $ | 15.26 | $ | 15.18 | |||||||
Refining Margin, excluding Inventory Valuation Impacts * | 11.86 | 17.47 | 14.71 | 15.60 | |||||||||||
Direct Operating Expenses * | 4.63 | 4.41 | 4.56 | 4.62 |
∗ See “Non-GAAP Reconciliations” section below.
Throughput Data by Refinery
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
(in bpd) | 2019 | 2018 | 2019 | 2018 | |||||||
Coffeyville | |||||||||||
Regional crude | 63,501 | 35,855 | 49,093 | 31,350 | |||||||
WTI | 46,784 | 72,468 | 67,382 | 66,952 | |||||||
WTL | 1,875 | — | 473 | — | |||||||
Midland WTI | 709 | 18,506 | 3,888 | 15,893 | |||||||
Condensate | 6,534 | 672 | 4,331 | 4,992 | |||||||
Heavy Canadian | 3,264 | 7,629 | 4,711 | 5,302 | |||||||
Other feedstocks and blendstocks | 10,798 | 12,033 | 9,160 | 8,369 | |||||||
Wynnewood | |||||||||||
Regional crude | 57,107 | 51,959 | 53,848 | 54,746 | |||||||
WTI | — | — | 3 | 2,354 | |||||||
WTL | 2,649 | — | 668 | — | |||||||
Midland WTI | 6,808 | 7,776 | 10,995 | 10,332 | |||||||
Condensate | 8,431 | 8,808 | 7,666 | 7,237 | |||||||
Heavy Canadian | — | — | — | — | |||||||
Other feedstocks and blendstocks | 4,269 | 5,775 | 3,753 | 5,068 | |||||||
Total throughput | 212,729 | 221,481 | 215,971 | 212,595 | |||||||
Production Data by Refinery
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
(in bpd) | 2019 | 2018 | 2019 | 2018 | |||||||
Coffeyville | |||||||||||
Gasoline | 73,814 | 78,290 | 71,817 | 67,091 | |||||||
Distillate | 53,222 | 60,080 | 57,549 | 56,307 | |||||||
Other liquid products | 2,850 | 4,834 | 5,810 | 5,737 | |||||||
Solids | 3,643 | 5,682 | 4,573 | 5,190 | |||||||
Wynnewood | |||||||||||
Gasoline | 39,429 | 39,033 | 38,864 | 40,291 | |||||||
Distillate | 33,496 | 30,568 | 32,380 | 33,442 | |||||||
Other liquid products | 3,697 | 2,992 | 3,223 | 4,025 | |||||||
Solids | 27 | 27 | 30 | 41 | |||||||
Total production | 210,178 | 221,506 | 214,246 | 212,124 | |||||||
Liquid volume yield (as % of total throughput) | 97.1 | % | 97.0 | % | 97.1 | % | 97.3 | % |
Key Market Indicators
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(dollars per barrel) | 2019 | 2018 | 2019 | 2018 | |||||||||||
West Texas Intermediate (WTI) NYMEX | $ | 56.87 | $ | 59.34 | $ | 57.04 | $ | 64.90 | |||||||
Crude Oil Differentials to WTI: | |||||||||||||||
Brent | 5.55 | 9.26 | 7.12 | 6.79 | |||||||||||
WCS (heavy sour) | (18.98 | ) | (33.86 | ) | (13.72 | ) | (26.35 | ) | |||||||
Condensate | (0.10 | ) | (0.65 | ) | (0.76 | ) | (0.46 | ) | |||||||
Midland Cushing | 0.94 | (5.96 | ) | (0.69 | ) | (7.20 | ) | ||||||||
NYMEX Crack Spreads: | |||||||||||||||
Gasoline | 12.14 | 9.81 | 15.43 | 15.69 | |||||||||||
Heating Oil | 24.82 | 27.74 | 24.43 | 23.15 | |||||||||||
NYMEX 2-1-1 Crack Spread | 18.48 | 18.78 | 19.93 | 19.42 | |||||||||||
PADD II Group 3 Product Basis: | |||||||||||||||
Gasoline | (1.27 | ) | (0.35 | ) | (1.74 | ) | (1.58 | ) | |||||||
Ultra Low Sulfur Diesel | (2.41 | ) | (0.25 | ) | (1.68 | ) | 0.01 | ||||||||
PADD II Group 3 Product Crack Spread: | |||||||||||||||
Gasoline | 10.88 | 9.46 | 13.69 | 14.11 | |||||||||||
Ultra Low Sulfur Diesel | 22.41 | 27.49 | 22.75 | 23.16 | |||||||||||
PADD II Group 3 2-1-1 | 16.65 | 18.48 | 18.22 | 18.63 | |||||||||||
Q1 2020 Petroleum Segment Outlook
The table below summarizes our outlook for certain refining statistics and financial information for the first quarter of 2020. See “Forward-Looking Statements” above.
Q1 2020 | |||||||
Low | High | ||||||
Total throughput (bpd) | 155,000 | 165,000 | |||||
Direct operating expenses (1) (in millions) | $ | 85 | $ | 95 | |||
Total capital expenditures (in millions) | $ | 45 | $ | 55 | |||
Total turnaround expenditures (in millions) | $ | 115 | $ | 125 |
(1) Direct operating expenses are shown exclusive of depreciation and amortization.
Nitrogen Fertilizer Segment
Ammonia Utilization Rates (2)
Two Years Ended December 31, | |||||
(percent of capacity utilization) | 2019 | 2018 | |||
Consolidated | 93 | % | 95 | % | |
Coffeyville | 94 | % | 95 | % | |
East Dubuque | 91 | % | 95 | % |
(2) | Reflects ammonia utilization rates on a consolidated basis and at each of the Nitrogen Fertilizer facilities. Utilization is an important measure used by management to assess operational output at each of the facilities. Utilization is calculated as actual tons produced divided by capacity. The Nitrogen Fertilizer Segment presents utilization on a two-year rolling average to take into account the impact of current turnaround cycles on any specific period. The two-year rolling average is a more useful presentation of the long-term utilization performance of our plants. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With the Nitrogen Fertilizer Segments’ efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well the facilities operate. |
Sales and Production Data
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Consolidated sales (thousand tons): | |||||||||||||||
Ammonia | 62 | 46 | 241 | 202 | |||||||||||
UAN | 293 | 364 | 1,261 | 1,289 | |||||||||||
Consolidated product pricing at gate (dollars per ton) (1): | |||||||||||||||
Ammonia | $ | 324 | $ | 324 | $ | 392 | $ | 328 | |||||||
UAN | $ | 176 | $ | 180 | $ | 199 | $ | 173 | |||||||
Consolidated production volume (thousand tons): | |||||||||||||||
Ammonia (gross produced) (2) | 180 | 209 | 766 | 794 | |||||||||||
Ammonia (net available for sale) (2) | 55 | 59 | 223 | 246 | |||||||||||
UAN | 286 | 357 | 1,255 | 1,276 | |||||||||||
Feedstock: | |||||||||||||||
Petroleum coke used in production (thousand tons) | 131 | 139 | 535 | 463 | |||||||||||
Petroleum coke used in production (dollars per ton) | $ | 39.90 | $ | 41.34 | $ | 37.47 | $ | 28.41 | |||||||
Natural gas used in production (thousands of MMBtus) (3) | 1,646 | 2,000 | 6,856 | 7,933 | |||||||||||
Natural gas used in production (dollars per MMBtu) (3) | $ | 2.87 | $ | 4.06 | $ | 2.88 | $ | 3.28 | |||||||
Natural gas in cost of materials and other (thousands of MMBtus) (3) | 1,474 | 1,854 | 6,961 | 7,122 | |||||||||||
Natural gas in cost of materials and other (dollars per MMBtu) (3) | $ | 2.58 | $ | 3.50 | $ | 3.08 | $ | 3.15 |
(1) | Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry. |
(2) | Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products. |
(3) | The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense. |
Key Market Indicators
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Ammonia — Southern plains (dollars per ton) | $ | 288 | $ | 423 | $ | 348 | $ | 370 | |||||||
Ammonia — Corn belt (dollars per ton) | 385 | 479 | 435 | 424 | |||||||||||
UAN — Corn belt (dollars per ton) | 189 | 255 | 210 | 219 | |||||||||||
Natural gas NYMEX (dollars per MMBtu) | $ | 2.40 | $ | 3.75 | $ | 2.54 | $ | 3.08 | |||||||
Q1 2020 Nitrogen Fertilizer Segment Outlook
The table below summarizes our outlook for certain operational statistics and financial information for the first quarter of 2020. See “Forward-Looking Statements” above.
Q1 2020 | |||||||
Low | High | ||||||
Ammonia utilization rates (1) | |||||||
Consolidated | 95 | % | 100 | % | |||
Coffeyville | 95 | % | 100 | % | |||
East Dubuque | 95 | % | 100 | % | |||
Direct operating expenses (2) (in millions) | $ | 35 | $ | 40 | |||
Total capital expenditures (in millions) | $ | 4 | $ | 7 |
(1) | Ammonia utilization rates exclude the impact of Turnarounds. |
(2) | Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and impacts of inventory adjustments. |
Non-GAAP Reconciliations
Reconciliation of Consolidated Net Income to EBITDA
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income | $ | 28 | $ | 95 | $ | 362 | $ | 366 | |||||||
Add: | |||||||||||||||
Interest expense, net | 24 | 22 | 102 | 102 | |||||||||||
Income tax expense | 19 | 14 | 129 | 79 | |||||||||||
Depreciation and amortization | 71 | 71 | 287 | 274 | |||||||||||
EBITDA | 142 | 202 | 880 | 821 | |||||||||||
Reconciliation of Petroleum Segment Net Income to EBITDA
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income (loss) | $ | 81 | $ | 115 | $ | 559 | $ | 511 | |||||||
Add: | |||||||||||||||
Interest expense, net | 4 | 9 | 27 | 41 | |||||||||||
Depreciation and amortization | 50 | 48 | 202 | 196 | |||||||||||
Petroleum EBITDA | 135 | 172 | 788 | 748 | |||||||||||
Reconciliation of Petroleum Segment Gross Profit to Refining Margin and Refining Margin Adjusted for Inventory Valuation Impact
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net sales | $ | 1,485 | $ | 1,641 | $ | 5,968 | $ | 6,780 | |||||||
Cost of materials and other | 1,241 | 1,362 | 4,765 | 5,602 | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization and turnaround expenses as reflected below) | 91 | 90 | 359 | 356 | |||||||||||
Depreciation and amortization | 48 | 47 | 199 | 192 | |||||||||||
Gross profit | 105 | 142 | 645 | 630 | |||||||||||
Add: | |||||||||||||||
Direct operating expenses (exclusive of depreciation and amortization and turnaround expenses as reflected below) | 91 | 90 | 359 | 356 | |||||||||||
Depreciation and amortization | 48 | 47 | 199 | 192 | |||||||||||
Refining margin | 244 | 279 | 1,203 | 1,178 | |||||||||||
Inventory valuation impact, (favorable) unfavorable (1) | (12 | ) | 77 | (43 | ) | 33 | |||||||||
Refining margin, excluding inventory valuation impacts | $ | 232 | $ | 356 | $ | 1,160 | $ | 1,211 |
(1) | The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period. |
Reconciliation of Petroleum Segment Total Throughput Barrels
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Total throughput barrels per day | 212,729 | 221,481 | 215,971 | 212,595 | |||||||
Days in the period | 92 | 92 | 365 | 365 | |||||||
Total throughput barrels | 19,571,068 | 20,376,252 | 78,829,441 | 77,597,175 | |||||||
Reconciliation of Petroleum Segment Refining Margin per Total Throughput Barrel
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions, except per total throughput barrel) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Refining margin | $ | 244 | $ | 279 | $ | 1,203 | $ | 1,178 | |||||||
Divided by: total throughput barrels | 20 | 20 | 79 | 78 | |||||||||||
Refining margin per total throughput barrel | $ | 12.47 | $ | 13.67 | $ | 15.26 | $ | 15.18 | |||||||
Reconciliation of Petroleum Segment Refining Margin Adjusted for Inventory Valuation Impact per Total Throughput Barrel
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions, except per total throughput barrel) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Refining margin, excluding inventory valuation impacts | $ | 232 | $ | 356 | $ | 1,160 | $ | 1,211 | |||||||
Divided by: total throughput barrels | 20 | 20 | 79 | 78 | |||||||||||
Refining margin, excluding inventory valuation impacts, per total throughput barrel | $ | 11.86 | $ | 17.47 | $ | 14.71 | $ | 15.60 | |||||||
Reconciliation of Petroleum Segment Direct Operating Expenses per Total Throughput Barrel
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
(in millions, except per total throughput barrel) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Direct operating expenses (exclusive of depreciation and amortization) | $ | 91 | $ | 90 | $ | 359 | $ | 356 | |||||||
Divided by: total throughput barrels | 20 | 20 | 79 | 78 | |||||||||||
Direct operating expense per total throughput barrel | $ | 4.63 | $ | 4.41 | $ | 4.56 | $ | 4.62 | |||||||
Reconciliation of Nitrogen Fertilizer Segment Net Loss to EBITDA
Three Months Ended December 31, |
Year Ended December 31, |
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(in millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Nitrogen fertilizer net loss | $ | (25 | ) | $ | (1 | ) | $ | (35 | ) | $ | (50 | ) | |||
Add: | |||||||||||||||
Interest expense, net | 16 | 15 | 62 | 62 | |||||||||||
Depreciation and amortization | 20 | 19 | 80 | 72 | |||||||||||
Nitrogen fertilizer EBITDA | $ | 11 | $ | 33 | $ | 107 | $ | 84 |
Source: CVR Energy, Inc.