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CVR Energy Reports 2016 Third Quarter Results And Announces Cash Dividend of 50 Cents

SUGAR LAND, Texas, Oct. 27, 2016 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI) today announced third quarter 2016 net income of $5.4 million, or 6 cents per diluted share, on net sales of $1,240.3 million, compared to net income of $57.9 million, or 67 cents per diluted share, on net sales of $1,408.8 million for the 2015 third quarter. Third quarter 2016 adjusted EBITDA, a non-GAAP financial measure, was $58.2 million, compared to third quarter 2015 adjusted EBITDA of $153.8 million.

CVR Energy Logo.

For the first nine months of 2016, net income was $17.6 million, or 20 cents per diluted share, on net sales of $3,429.0 million, compared to net income of $214.6 million, or $2.47 per diluted share, on net sales of $4,421.9 million for the same period a year earlier. Adjusted EBITDA for the first nine months of 2016 was $158.8 million, compared to adjusted EBITDA of $463.2 million for the first nine months of 2015.

"CVR Partners posted high on-stream rates at its Coffeyville, Kansas, and East Dubuque, Illinois, fertilizer plants during the third quarter," said Jack Lipinski, CVR Energy's chief executive officer. "CVR Refining's Coffeyville refinery also ran well during the quarter, and the company executed a definitive agreement with Velocity Midstream Partners for the construction of a crude oil pipeline that will directly link the fairway of the South Central Oklahoma Oil Province (SCOOP) to its Wynnewood, Oklahoma, refinery.

"As I mentioned in the CVR Refining third quarter news release, the exorbitant costs of Renewable Identification Numbers (RINs) under the broken Renewable Fuel Standard (RFS) program continue to negatively impact our overall financial results," Lipinski said. "The Environmental Protection Agency (EPA) must change the point of obligation and pull back on its proposed 2017 Renewable Volume Obligations (RVOs) before escalating RIN prices cause irreparable harm to merchant refiners. The EPA is now in the process of literally destroying small and medium-sized merchant refineries like ours that do not control the blending and retail sale of their fuel.

"It is absurd that the EPA continues to punish and ruin merchant refineries that have done nothing wrong when the EPA itself admits that the RFS program is not working," he continued. "The primary beneficiaries of the broken RFS program are 'Big Oil,' large retail chains and the Wall Street speculators that are manipulating the RINs' market for illicit gain, causing the compliance costs of merchant refineries to skyrocket - all with the EPA's imprimatur. Even the EPA's own former Chief of Criminal Investigations, Doug Parker, recently stated publicly that 'structural vulnerabilities in the regulations, limited agency oversight, and a lack of market transparency within the RFS made this program a ripe target for massive fraud and illicit gain.'

"The EPA now has the opportunity to avert another 2008-style financial crisis, but only if it takes resolute and immediate action," Lipinski added. "If regulatory oversight of the 'wild west' RINs' market, as well as an investigation of the criminal activities identified by Doug Parker, are not brought to bear, a number of small and medium-sized refineries will be driven into bankruptcy, which will do for 'Big Oil' what the Federal Trade Commission would never allow them to do for themselves - destroy all of their competitors in the refining business. This will allow them to strengthen oligopolies that will control the supply of gasoline, giving them the ability to cause prices to spike and squeeze consumers at will, which will start a domino effect, crippling the transportation industry and causing many businesses to suffer and even fail.

"We therefore implore the EPA, before it is too late and its rule becomes final on Nov. 30, to take decisive action - by drastically lowering the proposed RVOs for 2017," he said. "It is important to note that the volumes of ethanol and biofuels that the EPA has indicated it will require refineries to blend in 2017 are mathematically impossible to achieve. Therefore, the demands being made on merchant refineries will be impossible for them to achieve. This has become an 'Alice in Wonderland' situation - but it is not funny because of the dire consequences that it will soon manifest.

"We invite everyone to visit our new online resource, www.FixTheRFS.org, to learn more about these important issues, our position and how the EPA can fix this broken program," Lipinski concluded.

CVR Energy also announced a third quarter 2016 cash dividend of 50 cents per share. The dividend, as declared by CVR Energy's Board of Directors, will be paid on Nov. 14, 2016, to stockholders of record on Nov. 7, 2016.

CVR Energy's third quarter cash dividend brings the cumulative cash dividends paid or declared for the first nine months of 2016 to $1.50 per share.

Today, CVR Partners and CVR Refining announced that the partnerships will not pay a cash distribution for the 2016 third quarter.    

Petroleum Business

The petroleum business, which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported third quarter 2016 operating income of $28.4 million on net sales of $1,163.5 million, compared to operating income of $137.2 million on net sales of $1,361.6 million in the third quarter of 2015.

Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $10.09 in the 2016 third quarter, compared to $18.65 during the same period in 2015. Direct operating expenses (exclusive of depreciation and amortization), excluding major scheduled turnaround expenses, per crude oil throughput barrel, for the 2016 third quarter were $5.33, compared to $5.27 in the third quarter of 2015.

Third quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks totaled 206,733 barrels per day (bpd), compared to third quarter 2015 throughputs of crude oil and all other feedstocks and blendstocks of 210,917 bpd.

Nitrogen Fertilizers Business

The fertilizer business, which is operated by CVR Partners and includes the Coffeyville and East Dubuque fertilizer facilities, reported third quarter 2016 operating income of $2.4 million on net sales of $78.5 million, compared to an operating loss of $11.8 million on net sales of $49.3 million for the third quarter of 2015.

For the third quarter of 2016, consolidated average realized gate prices for UAN and ammonia were $154 per ton and $345 per ton, respectively. Average realized gate prices for UAN and ammonia for the Coffeyville plant were $227 per ton and $478 per ton, respectively, for the same period in 2015.

In the 2016 third quarter, CVR Partners' fertilizer facilities produced a combined 200,800 tons of ammonia, of which 60,300 net tons were available for sale while the rest was upgraded to other fertilizer products, including 317,200 tons of UAN. In the 2015 third quarter, the Coffeyville plant produced 66,300 tons of ammonia and purchased an additional 7,500 tons of ammonia, of which 12,100 net tons were available for sale while the remainder was upgraded to 152,400 tons of UAN.

Cash and Debt

Consolidated cash and cash equivalents, which included $285.9 million for CVR Refining and $65.3 million for CVR Partners, was $762.6 million at Sept. 30, 2016. Consolidated total debt was $1,166.3 million at Sept. 30, 2016. The company had no debt exclusive of CVR Refining's and CVR Partners' debt.

Third Quarter 2016 Earnings Conference Call

CVR Energy previously announced that it will host its third quarter 2016 Earnings Conference Call for analysts and investors on Thursday, Oct. 27, 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/1003/17701. 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/1003/17701. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13647403.

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 66 percent of the common units of CVR Refining and 34 percent of the common units of 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 Operations Data (all information in this release is unaudited unless noted otherwise).



















Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(in millions, except per share data)

Consolidated Statement of Operations Data:








Net sales

$

1,240.3



$

1,408.8



$

3,429.0



$

4,421.9


Cost of product sold

1,005.7



1,076.7



2,719.3



3,342.5


Direct operating expenses

129.5



145.8



409.2



372.7


Flood insurance recovery







(27.3)


Selling, general and administrative expenses

27.8



26.1



81.7



78.5


Depreciation and amortization

50.1



38.7



140.8



123.2


Operating income

27.2



121.5



78.0



532.3


Interest expense and other financing costs

(26.2)



(11.9)



(56.8)



(36.5)


Interest income

0.2



0.3



0.5



0.7


Gain (loss) on derivatives, net

(1.7)



11.8



(4.8)



(52.2)


Loss on extinguishment of debt





(5.1)




Other income, net

5.0



0.3



5.5



36.6


Income before income tax expense

4.5



122.0



17.3



480.9


Income tax expense

2.5



23.1



2.3



105.2


Net income

2.0



98.9



15.0



375.7


Less: Net income (loss) attributable to noncontrolling interest

(3.4)



41.0



(2.6)



161.1


Net income attributable to CVR Energy stockholders

$

5.4



$

57.9



$

17.6



$

214.6










Basic and diluted earnings per share

$

0.06



$

0.67



$

0.20



$

2.47


Dividends declared per share

$

0.50



$

0.50



$

1.50



$

1.50










Adjusted EBITDA*

$

58.2



$

153.8



$

158.8



$

463.2


Adjusted net income*

$

11.5



$

82.4



$

37.0



$

239.4


Adjusted net income per diluted share*

$

0.13



$

0.95



$

0.43



$

2.76










Weighted-average common shares outstanding - basic and diluted

86.8



86.8



86.8



86.8





* See "Use of Non-GAAP Financial Measures" below.

 











As of September
30, 2016


As of December
31, 2015




(audited)


(in millions)

Balance Sheet Data:




Cash and cash equivalents

$

762.6



$

765.1


Working capital (1)

842.6



789.0


Total assets (1)

4,055.0



3,299.4


Total debt, including current portion (1)

1,166.3



667.1


Total CVR stockholders' equity

894.4



984.1




(1)

Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt.

 



















Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(in millions)

Cash Flow Data:








Net cash flow provided by (used in):








Operating activities

$

149.0



$

235.9



$

218.9



$

612.3


Investing activities

(16.9)



(55.1)



(172.0)



(73.8)


Financing activities

(60.1)



(106.5)



(49.4)



(280.2)


Net cash flow

$

72.0



$

74.3



$

(2.5)



$

258.3


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 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 nine months ended September 30, 2016 are included in CVR Refining's press release dated October 27, 2016. The Nitrogen Fertilizer segment is operated by CVR Partners, LP, ("CVR Partners") in which we own approximately 34% of the common units as of September 30, 2016 and serve as the general partner. On April 1, 2016, CVR Partners completed the previously announced transactions (the "East Dubuque Merger") contemplated by the Agreement and Plan of Merger, dated as of August 9, 2015, whereby CVR Partners acquired CVR Nitrogen, LP (formerly known as East Dubuque Nitrogen Partners, L.P. and also formerly known as Rentech Nitrogen Partners L.P.) and CVR Nitrogen GP, LLC (formerly known as East Dubuque Nitrogen GP, LLC and also formerly known as Rentech Nitrogen GP, LLC). The Nitrogen Fertilizer segment consists of a nitrogen fertilizer manufacturing facility located in Coffeyville, Kansas, and as of April 1, 2016, a nitrogen fertilizer manufacturing facility located in East Dubuque, Illinois. Detailed operating results for the Nitrogen Fertilizer segment for the quarter and nine months ended September 30, 2016 are included in CVR Partners' press release dated October 27, 2016.



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

Three Months Ended September 30, 2016








Net sales

$

1,163.5



$

78.5



$

(1.7)



$

1,240.3


Cost of product sold

987.5



19.9



(1.7)



1,005.7


Direct operating expenses (1)

97.0



32.5





129.5


Major scheduled turnaround expenses








Selling, general and administrative

18.1



7.3



2.4



27.8


Depreciation and amortization

32.5



16.4



1.2



50.1


Operating income (loss)

$

28.4



$

2.4



$

(3.6)



$

27.2










Capital expenditures

$

15.4



$

6.4



$

1.0



$

22.8










Nine Months Ended September 30, 2016








Net sales

$

3,161.9



$

271.4



$

(4.3)



$

3,429.0


Cost of product sold

2,651.7



72.2



(4.6)



2,719.3


Direct operating expenses (1)

267.2



103.8



0.1



371.1


Major scheduled turnaround expenses

31.5



6.6





38.1


Selling, general and administrative

53.4



22.0



6.3



81.7


Depreciation and amortization

95.6



41.0



4.2



140.8


Operating income (loss)

$

62.5



$

25.8



$

(10.3)



$

78.0










Capital expenditures

$

83.4



$

18.3



$

3.9



$

105.6


 



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

Three Months Ended September 30, 2015








Net sales

$

1,361.6



$

49.3



$

(2.1)



$

1,408.8


Cost of product sold

1,063.7



14.5



(1.5)



1,076.7


Direct operating expenses (1)

97.0



26.6





123.6


Major scheduled turnaround expenses

15.6



6.6





22.2


Flood insurance recovery (2)








Selling, general and administrative

18.2



6.0



1.9



26.1


Depreciation and amortization

29.9



7.4



1.4



38.7


Operating income (loss)

$

137.2



$

(11.8)



$

(3.9)



$

121.5










Capital expenditures

$

45.5



$

6.4



$

3.3



$

55.2










Nine Months Ended September 30, 2015








Net sales

$

4,213.6



$

223.2



$

(14.9)



$

4,421.9


Cost of product sold

3,300.8



55.7



(14.0)



3,342.5


Direct operating expenses (1)

272.7



75.7



0.1



348.5


Major scheduled turnaround expenses

17.2



7.0





24.2


Flood insurance recovery (2)

(27.3)







(27.3)


Selling, general and administrative

54.9



15.2



8.4



78.5


Depreciation and amortization

98.1



21.2



3.9



123.2


Operating income (loss)

$

497.2



$

48.4



$

(13.3)



$

532.3










Capital expenditures

$

123.6



$

12.4



$

5.9



$

141.9




(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)

September 30, 2016








Cash and cash equivalents

$

285.9



$

65.3



$

411.4



$

762.6


Total assets

2,277.3



1,326.9



450.8



4,055.0


Total debt, including current portion

573.3



624.5



(31.5)



1,166.3










December 31, 2015








Cash and cash equivalents

$

187.3



$

50.0



$

527.8



$

765.1


Total assets (1)

2,189.0



536.3



574.1



3,299.4


Total debt, including current portion (1)

573.8



124.8



(31.5)



667.1




(1)

Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt.

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 nine months ended September 30, 2016 are included in CVR Refining's press release dated October 27, 2016.



















Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(in millions)

Petroleum Segment Summary Financial Results:








Net sales

$

1,163.5



$

1,361.6



$

3,161.9



$

4,213.6


Cost of product sold

987.5



1,063.7



2,651.7



3,300.8


Direct operating expenses

97.0



97.0



267.2



272.7


Major scheduled turnaround expenses



15.6



31.5



17.2


Flood insurance recovery







(27.3)


Selling, general and administrative expenses

18.1



18.2



53.4



54.9


Depreciation and amortization

32.5



29.9



95.6



98.1


Operating income

28.4



137.2



62.5



497.2


Interest expense and other financing costs

(10.8)



(10.4)



(31.7)



(32.2)


Interest income



0.1





0.3


Gain (loss) on derivatives, net

(1.7)



11.8



(4.8)



(52.2)


Other income, net



0.2





0.3


Income before income tax expense

15.9



138.9



26.0



413.4


Income tax expense








Net income

$

15.9



$

138.9



$

26.0



$

413.4










Gross profit

$

46.5



$

155.4



$

115.9



$

552.1


Refining margin*

$

176.0



$

297.9



$

510.2



$

912.8


Refining margin adjusted for FIFO impact*

$

183.7



$

343.5



$

480.5



$

946.5


Adjusted Petroleum EBITDA*

$

75.3



$

229.6



$

195.1



$

585.6





* See "Use of Non-GAAP Financial Measures" below.

 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(dollars per barrel)

Petroleum Segment Key Operating Statistics:








Per crude oil throughput barrel:








Refining margin*

$

9.66



$

16.17



$

9.55



$

16.38


FIFO impact, (favorable) unfavorable

0.43



2.48



(0.56)



0.60


Refining margin adjusted for FIFO impact*

10.09



18.65



8.99



16.98


Gross profit

2.55



8.44



2.17



9.91


Gross profit excluding flood insurance recovery*

2.55



8.44



2.17



9.42


Direct operating expenses and major scheduled turnaround expenses

5.33



6.11



5.59



5.20


Direct operating expenses excluding major scheduled turnaround expenses

5.33



5.27



5.00



4.89


Direct operating expenses and major scheduled turnaround expenses per barrel sold

5.04



5.79



5.24



4.88


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

5.04



$

4.99



$

4.68



$

4.59


Barrels sold (barrels per day)

209,228



211,440



208,192



217,696





* See "Use of Non-GAAP Financial Measures" below.

 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,

Petroleum Segment Summary

2016


2015


2016


2015

 Refining Throughput and Production Data (bpd):
















Throughput:
















Sweet

176,404



85.3

%


185,228



87.8

%


174,594



85.4

%


184,481



85.5

%

Medium

1,983



1.0

%


2,037



1.0

%


2,321



1.1

%


3,220



1.5

%

Heavy sour

19,568



9.5

%


12,891



6.1

%


17,978



8.9

%


16,476



7.7

%

Total crude oil throughput

197,955



95.8

%


200,156



94.9

%


194,893



95.4

%


204,177



94.7

%

All other feedstocks and blendstocks

8,778



4.2

%


10,761



5.1

%


9,476



4.6

%


11,487



5.3

%

Total throughput

206,733



100.0

%


210,917



100.0

%


204,369



100.0

%


215,664



100.0

%

Production:
















Gasoline

106,120



51.2

%


103,479



48.9

%


106,774



52.2

%


106,650



49.1

%

Distillate

84,669



40.9

%


88,479



41.8

%


83,101



40.6

%


91,262



42.0

%

Other (excluding internally produced fuel)

16,390



7.9

%


19,608



9.3

%


14,738



7.2

%


19,210



8.9

%

Total refining production (excluding internally produced fuel)

207,179



100.0

%


211,566



100.0

%


204,613



100.0

%


217,122



100.0

%

Product price (dollars per gallon):
















Gasoline

$

1.45





$

1.72





$

1.31





$

1.69




Distillate

1.45





1.60





1.30





1.70




 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015

Market Indicators (dollars per barrel):








West Texas Intermediate (WTI) NYMEX

$

44.94



$

46.50



$

41.53



$

51.01


Crude Oil Differentials:








WTI less WTS (light/medium sour)

1.47



(1.62)



0.82



(0.47)


WTI less WCS (heavy sour)

14.23



15.14



13.59



12.79


NYMEX Crack Spreads:








Gasoline

13.73



22.23



16.24



22.30


Heating Oil

14.34



20.05



13.04



22.87


NYMEX 2-1-1 Crack Spread

14.03



21.14



14.64



22.59


PADD II Group 3 Basis:








Gasoline

0.48



0.63



(3.59)



(2.99)


Ultra Low Sulfur Diesel

1.01



0.27



(0.38)



(2.61)


PADD II Group 3 Product Crack Spread:








Gasoline

14.21



22.87



12.65



19.31


Ultra Low Sulfur Diesel

15.35



20.31



12.65



20.26


PADD II Group 3 2-1-1

14.78



21.59



12.65



19.78


 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(in millions, except operating statistics)

Coffeyville Refinery Financial Results:








Net sales

$

788.1



$

840.0



$

2,094.1



$

2,698.0


Cost of product sold

669.9



669.9



1,763.3



2,135.6


Refining margin*

118.2



170.1



330.8



562.4


Direct operating expenses

50.7



54.0



144.5



155.6


Major scheduled turnaround expenses



15.6



31.5



17.2


Flood insurance recovery







(27.3)


Depreciation and amortization

17.7



15.7



51.4



54.7


Gross profit

$

49.8



$

84.8



$

103.4



$

362.2










Refining margin adjusted for FIFO impact*

$

122.2



$

201.3



$

308.4



$

582.9










Coffeyville Refinery Key Operating Statistics:








Per crude oil throughput barrel:








Refining margin*

$

9.86



$

15.57



$

9.94



$

16.42


FIFO impact, (favorable) unfavorable

0.33



2.85



(0.67)



0.60


Refining margin adjusted for FIFO impact*

10.19



18.42



9.27



17.02


Gross profit

4.15



7.76



3.11



10.58


Gross profit excluding flood insurance recovery*

4.15



7.76



3.11



9.78


Direct operating expenses and major scheduled turnaround expenses

4.23



6.37



5.29



5.05


Direct operating expenses excluding major scheduled turnaround expenses

4.23



4.95



4.34



4.54


Direct operating expenses and major scheduled turnaround expenses per barrel sold

3.93



5.95



4.80



4.61


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

3.93



$

4.62



$

3.94



$

4.15


Barrels sold (barrels per day)

140,256



127,089



133,729



137,365





* See "Use of Non-GAAP Financial Measures" below.

 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015

Coffeyville Refinery Throughput and Production Data (bpd):
















Throughput:
















Sweet

110,825



81.0

%


105,314



83.3

%


101,803



79.2

%


106,256



79.2

%

Medium



%


552



0.4

%


1,641



1.3

%


2,732



2.0

%

Heavy sour

19,568



14.3

%


12,891



10.2

%


17,978



13.9

%


16,476



12.3

%

Total crude oil throughput

130,393



95.3

%


118,757



93.9

%


121,422



94.4

%


125,464



93.5

%

All other feedstocks and blendstocks

6,399



4.7

%


7,753



6.1

%


7,193



5.6

%


8,691



6.5

%

Total throughput

136,792



100.0

%


126,510



100.0

%


128,615



100.0

%


134,155



100.0

%

Production:
















Gasoline

70,013



50.3

%


60,849



47.3

%


67,298



51.5

%


65,000



47.4

%

Distillate

57,839



41.6

%


55,521



43.1

%


54,192



41.5

%


59,050



43.0

%

Other (excluding internally produced fuel)

11,286



8.1

%


12,407



9.6

%


9,191



7.0

%


13,115



9.6

%

Total refining production (excluding internally produced fuel)

139,138



100.0

%


128,777



100.0

%


130,681



100.0

%


137,165



100.0

%

 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(in millions, except operating statistics)

Wynnewood Refinery Financial Results:








Net sales

$

374.3



$

520.5



$

1,064.4



$

1,512.3


Cost of product sold

317.7



393.1



888.5



1,164.5


Refining margin*

56.6



127.4



175.9



347.8


Direct operating expenses

46.3



42.9



122.7



117.0


Major scheduled turnaround expenses








Depreciation and amortization

12.7



12.5



38.0



37.6


Gross profit (loss)

$

(2.4)



$

72.0



$

15.2



$

193.2










Refining margin adjusted for FIFO impact*

$

60.4



$

141.8



$

168.6



$

361.0










Wynnewood Refinery Key Operating Statistics:








Per crude oil throughput barrel:








Refining margin*

$

9.10



$

17.01



$

8.74



$

16.18


FIFO impact, (favorable) unfavorable

0.61



1.93



(0.36)



0.61


Refining margin adjusted for FIFO impact*

9.71



18.94



8.38



16.79


Gross profit (loss)

(0.39)



9.61



0.76



8.99


Direct operating expenses and major scheduled turnaround expenses

7.45



5.73



6.10



5.44


Direct operating expenses excluding major scheduled turnaround expenses

7.45



5.73



6.10



5.44


Direct operating expenses and major scheduled turnaround expenses

per barrel sold

7.29



5.53



$

6.01



$

5.33


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

7.29



$

5.53



$

6.01



$

5.33


Barrels sold (barrels per day)

68,971



84,351



74,463



80,332


 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015

Wynnewood Refinery Throughput and Production Data (bpd):
















Throughput:
















Sweet

65,579



93.8

%


79,914



94.6

%


72,791



96.1

%


78,225



96.0

%

Medium

1,983



2.8

%


1,485



1.8

%


680



0.9

%


488



0.6

%

Heavy sour



%




%




%




%

Total crude oil throughput

67,562



96.6

%


81,399



96.4

%


73,471



97.0

%


78,713



96.6

%

All other feedstocks and blendstocks

2,379



3.4

%


3,008



3.6

%


2,283



3.0

%


2,796



3.4

%

Total throughput

69,941



100.0

%


84,407



100.0

%


75,754



100.0

%


81,509



100.0

%

Production:
















Gasoline

36,107



53.1

%


42,630



51.5

%


39,476



53.4

%


41,650



52.1

%

Distillate

26,830



39.4

%


32,958



39.8

%


28,909



39.1

%


32,212



40.3

%

Other (excluding internally produced fuel)

5,104



7.5

%


7,201



8.7

%


5,547



7.5

%


6,095



7.6

%

Total refining production (excluding internally produced fuel)

68,041



100.0

%


82,789



100.0

%


73,932



100.0

%


79,957



100.0

%




* See "Use of Non-GAAP Financial Measures" below.

Nitrogen Fertilizer Segment Operating Data

The following tables set forth information about the Nitrogen Fertilizer segment operated by CVR Partners, of which we owned approximately 34% of the common units as of September 30, 2016 and serve as the general partner. The financial and operational data for the three and nine months ended September 30, 2016 include the results of the nitrogen fertilizer manufacturing facility located in East Dubuque, Illinois (the "East Dubuque Facility") beginning on April 1, 2016, the date of the closing of the acquisition. 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 nine months ended September 30, 2016 are included in CVR Partners' press release dated October 27, 2016.



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015


(in millions)

Nitrogen Fertilizer Segment Business Financial Results:








Net sales

$

78.5



$

49.3



$

271.4



$

223.2


Cost of product sold

19.9



14.5



72.2



55.7


Direct operating expenses

32.5



26.6



103.8



75.7


Major scheduled turnaround expenses



6.6



6.6



7.0


Selling, general and administrative expenses

7.3



6.0



22.0



15.2


Depreciation and amortization

16.4



7.4



41.0



21.2


Operating income (loss)

2.4



(11.8)



25.8



48.4


Interest expense and other financing costs

(15.6)



(1.8)



(32.8)



(5.2)


Loss on extinguishment of debt





(5.1)




Other income, net



0.1





0.1


Income (loss) before income tax expense

(13.2)



(13.5)



(12.1)



43.3


Income tax expense

0.2





0.3




Net income (loss)

$

(13.4)



$

(13.5)



$

(12.4)



$

43.3










Adjusted Nitrogen Fertilizer EBITDA*

$

17.4



$

3.8



$

74.4



$

78.3


 



Three Months Ended 

 September 30,


Nine Months Ended 

 September 30,


2016


2015


2016


2015

Nitrogen Fertilizer Segment Key Operating Statistics:
















Consolidated sales (thousand tons):








Ammonia

47.7



7.8



145.7



26.9


UAN

296.0



174.5



902.4



698.8










Consolidated product pricing at gate (dollars per ton) (1):








Ammonia

$

345



$

478



$

385



$

529


UAN

$

154



$

227



$

187



$

256










Consolidated production volume (thousand tons):








Ammonia (gross produced) (2)

200.8



66.3



485.9



269.4


Ammonia (net available for sale) (2)(3)

60.3



12.1



121.0



31.2


UAN

317.2



152.4



861.9



658.1










Feedstock:








Petroleum coke used in production (thousand tons)

126.8



82.7



384.4



335.8


Petroleum coke used in production (dollars per ton)

$

13



$

25



$

14



$

26


Natural gas used in production (thousands of MMBtus) (4)

2,075.5





3,471.6




Natural gas used in production (dollars per MMBtu) (4)

$

2.97



$



$

2.75



$


Natural gas in cost of product sold (thousands of MMBtus) (4)

1,679.5





2,742.5




Natural gas in cost of product sold (dollars per MMBtu) (4)

$

2.92



$



$

2.68



$










Coffeyville Facility on-stream factor (5):








Gasification

95.9

%


62.2

%


97.2

%


87.1

%

Ammonia

94.7

%


57.8

%


96.2

%


83.7

%

UAN

94.1

%


56.7

%


93.1

%


83.6

%









East Dubuque Facility on-stream factors (5):








Ammonia

94.4

%


%


81.7

%


%

UAN

92.9

%


%


81.1

%


%