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CVR Energy Reports 2016 Fourth Quarter and Full Year Results And Announces Cash Dividend of 50 Cents

SUGAR LAND, Texas, Feb. 16, 2017 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI) today announced full year 2016 net income of $24.7 million, or 28 cents per diluted share, on net sales of $4,782.4 million, compared to net income for full year 2015 of $169.6 million, or $1.95 per diluted share, on net sales of $5,432.5 million. Full year 2016 adjusted EBITDA, a non-GAAP financial measure, was $181.6 million compared to full year 2015 adjusted EBITDA of $498.8 million.

For the fourth quarter of 2016, the company reported net income of $7.1 million, or 8 cents per diluted share, on net sales of $1,353.4 million, compared to a fourth quarter 2015 net loss of $45 million, or 52 cents per diluted share, on net sales of $1,010.6 million.

Fourth quarter 2016 adjusted EBITDA was $22.8 million compared to adjusted EBITDA of $35.6 million for the same period a year earlier.

"CVR Refining's Coffeyville and Wynnewood refineries performed well during the 2016 fourth quarter, posting a combined crude throughput of 207,422 barrels per day (bpd)," said Jack Lipinski, CVR Energy's chief executive officer. "CVR Partners' Coffeyville and East Dubuque facilities also recorded high on-stream rates for the quarter.

"CVR Energy's fourth quarter results were negatively impacted by seasonally weak refining margins and continued high Renewable Identification Number (RIN) expenses," Lipinski said. "In addition, low nitrogen fertilizer pricing and a decrease in ammonia shipments due to unfavorable application conditions further impacted results."

CVR Energy also announced a fourth quarter 2016 cash dividend of 50 cents per share. The dividend, as declared by CVR Energy's Board of Directors, will be paid on March 6, 2017, to stockholders of record on Feb. 27, 2017.

CVR Energy's fourth quarter cash dividend brings the cumulative cash dividends paid or declared for the 2016 full year to $2.00 per share.

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

Petroleum Business

The petroleum business, which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported fourth quarter 2016 operating income of $15.3 million, on net sales of $1,269.4 million, compared to a fourth quarter 2015 operating loss of $135.5 million, on net sales of $948.3 million.

Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $7.32 in the 2016 fourth quarter, compared to $8.96 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 fourth quarter were $4.96, compared to $7.04 in the fourth quarter of 2015.

Fourth quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks totaled 223,266 bpd, compared to fourth quarter 2015 throughputs of crude oil and all other feedstocks and blendstocks of 172,364 bpd.

Nitrogen Fertilizers Business

The fertilizer business, which is operated by CVR Partners and includes the Coffeyville and East Dubuque fertilizer facilities, reported fourth quarter 2016 operating income of $1.0 million on net sales of $84.9 million, compared to operating income of $20.4 million on net sales of $66.0 million for the fourth quarter of 2015.

For the fourth quarter of 2016, consolidated average realized gate prices for UAN and ammonia were $147 per ton and $352 per ton, respectively. Average realized gate prices for UAN and ammonia for the Coffeyville facility were $221 per ton and $479 per ton, respectively, for the same period in 2015.

CVR Partners' fertilizer facilities produced a combined 207,600 tons of ammonia and purchased an additional 2,000 tons of ammonia during the fourth quarter of 2016, of which 62,600 net tons were available for sale while the rest was upgraded to other fertilizer products, including 330,700 tons of UAN. In the 2015 fourth quarter, the Coffeyville facility produced 116,100 tons of ammonia, of which 6,100 net tons were available for sale while the remainder was upgraded to 270,500 tons of UAN.

CVR Partners' results include the results of the East Dubuque fertilizer facility beginning April 1, 2016.

Cash and Debt

Consolidated cash and cash equivalents, which included $314.1 million for CVR Refining and $55.6 million for CVR Partners, was $735.8 million at Dec. 31, 2016. Consolidated total debt was $1,164.6 million at Dec. 31, 2016. The company had no debt exclusive of CVR Refining's and CVR Partners' debt.

Fourth Quarter 2016 Earnings Conference Call

CVR Energy previously announced that it will host its fourth quarter 2016 Earnings Conference Call for analysts and investors on Thursday, Feb. 16, 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/1003/19478. 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/1003/19478. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13653924.

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:
Brandee Stephens
CVR Energy, Inc.
(281) 207-3516
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, 2015 and the balance sheet data as of December 31, 2015).


















Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(in millions, except per share data)

Consolidated Statement of Operations Data:








Net sales

$

1,353.4



$

1,010.6



$

4,782.4



$

5,432.5


Operating costs and expenses:








Cost of materials and other

1,128.1



847.9



3,847.5



4,190.4


Direct operating expenses(1)

132.6



212.1



541.8



584.7


Depreciation and amortization

49.9



38.7



184.5



156.4


  Cost of sales

1,310.6



1,098.7



4,573.8



4,931.5


Flood insurance recovery







(27.3)


Selling, general and administrative expenses(1)

27.5



20.4



109.1



99.0


Depreciation and amortization

2.4



2.2



8.6



7.7


  Operating income (loss)

12.9



(110.7)



90.9



421.6


Interest expense and other financing costs

(27.1)



(11.9)



(83.9)



(48.4)


Interest income

0.2



0.2



0.7



1.0


Gain (loss) on derivatives, net

(14.6)



23.6



(19.4)



(28.6)


Gain (loss) on extinguishment of debt

0.2





(4.9)




Other income, net

0.3



0.2



5.7



36.7


  Income (loss) before income tax expense (benefit)

(28.1)



(98.6)



(10.9)



382.3


Income tax expense (benefit)

(22.1)



(20.7)



(19.8)



84.5


  Net income (loss)

(6.0)



(77.9)



8.9



297.8


  Less: Net income (loss) attributable to noncontrolling interest

(13.1)



(32.9)



(15.8)



128.2


  Net income (loss) attributable to CVR Energy stockholders

$

7.1



$

(45.0)



$

24.7



$

169.6










Basic and diluted earnings (loss) per share

$

0.08



$

(0.52)



$

0.28



$

1.95


Dividends declared per share

$

0.50



$

0.50



$

2.00



$

2.00










Adjusted EBITDA*

$

22.8



$

35.6



$

181.6



$

498.8


Adjusted net income (loss)*

$

4.4



$

(4.3)



$

41.5



$

235.1


Adjusted net income (loss) per diluted share*

$

0.05



$

(0.05)



$

0.48



$

2.71










Weighted-average common shares outstanding - basic and diluted

86.8



86.8



86.8



86.8




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



(1)

Direct operating expenses and selling, general and administrative expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses.











As of December 31,

2016


As of December 31,

2015




(audited)


(in millions)

Balance Sheet Data:




Cash and cash equivalents

$

735.8



$

765.1


Working capital(1)

749.6



789.0


Total assets(1)

4,050.2



3,299.4


Total debt, including current portion(1)

1,164.6



667.1


Total CVR stockholders' equity

858.1



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 form the carrying value of the debt.



















Three Months Ended 

December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(in millions)

Cash Flow Data:








Net cash flow provided by (used in):








  Operating activities

$

48.6



$

(75.5)



$

267.5



$

536.8


  Investing activities

(29.4)



(76.8)



(201.4)



(150.6)


  Financing activities

(46.0)



(94.6)



(95.4)



(374.8)


      Net cash flow

$

(26.8)



$

(246.9)



$

(29.3)



$

11.4


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, 2016 are included in CVR Refining's press release dated February 16, 2017. The Nitrogen Fertilizer segment is operated by CVR Partners, LP ("CVR Partners"), in which we own approximately 34% of the common units as of December 31, 2016 and serve as the general partner. On April 1, 2016, CVR Partners completed the merger (the "East Dubuque Merger") with 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 year ended December 31, 2016 are included in CVR Partners' press release dated February 16, 2017.




















Petroleum
(CVR Refining)


Nitrogen
Fertilizer (CVR
Partners)


Corporate and
Other


Consolidated








(in millions)

Three Months Ended December 31, 2016









Net sales


$

1,269.4



$

84.9



$

(0.9)



$

1,353.4


Cost of materials and other


1,107.5



21.5



(0.9)



1,128.1


Direct operating expenses(1)


94.7



37.9





132.6


Major scheduled turnaround expenses









Selling, general and administrative


18.5



7.3



1.7



27.5


Depreciation and amortization


33.4



17.2



1.7



52.3


   Operating income (loss)


$

15.3



$

1.0



$

(3.4)



$

12.9











Capital expenditures


$

18.9



$

5.9



$

3.2



$

28.0











Year Ended December 31, 2016









Net sales


$

4,431.3



$

356.3



$

(5.2)



$

4,782.4


Cost of materials and other


3,759.2



93.7



(5.4)



3,847.5


Direct operating expenses(1)


361.9



141.7



0.1



503.7


Major scheduled turnaround expenses


31.5



6.6





38.1


Selling, general and administrative


71.9



29.3



7.9



109.1


Depreciation and amortization


129.0



58.2



5.9



193.1


   Operating income (loss)


$

77.8



$

26.8



$

(13.7)



$

90.9











Capital expenditures


$

102.3



$

23.2



$

7.2



$

132.7






















Petroleum
(CVR Refining)


Nitrogen

Fertilizer (CVR
Partners)


Corporate and
Other


Consolidated








(in millions)

Three Months Ended December 31, 2015









Net sales


$

948.3



$

66.0



$

(3.7)



$

1,010.6


Cost of materials and other


842.8



9.5



(4.4)



847.9


Direct operating expenses(1)


103.8



23.3



0.1



127.2


Major scheduled turnaround expenses


84.9







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 materials and other


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






(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, 2016









Cash and cash equivalents


$

314.1



$

55.6



$

366.1



$

735.8


Total assets


2,331.9



1,312.2



406.1



4,050.2


Total debt, including current portion


541.5



623.1





1,164.6











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



125.0



(31.5)



667.3




(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 form 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 year ended December 31, 2016 are included in CVR Refining's press release dated February 16, 2017.


















Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(in millions)

Petroleum Segment Summary Financial Results:








Net sales

$

1,269.4



$

948.3



$

4,431.3



$

5,161.9


Operating costs and expenses:








Cost of materials and other

1,107.5



842.8



3,759.2



4,143.6


Direct operating expenses(1)

94.7



103.8



361.9



376.3


Major scheduled turnaround expenses



84.9



31.5



102.2


Depreciation and amortization

32.6



31.5



126.3



128.0


Cost of sales

1,234.8



1,063.0



4,278.9



4,750.1


Flood insurance recovery







(27.3)


Selling, general and administrative expenses(1)

18.5



20.2



71.9



75.2


Depreciation and amortization

0.8



0.6



2.7



2.2


Operating income (loss)

15.3



(135.5)



77.8



361.7


Interest expense and other financing costs

(11.7)



(10.5)



(43.4)



(42.6)


Interest income

0.1



0.1



0.1



0.4


Gain (loss) on derivatives, net

(14.6)



23.6



(19.4)



(28.6)


Other income, net

0.2



0.1



0.2



0.3


Income (loss) before income tax expense

(10.7)



(122.2)



15.3



291.2


Income tax expense








Net income (loss)

$

(10.7)



$

(122.2)



$

15.3



$

291.2










Gross profit (loss)

$

34.6



$

(114.7)



$

152.4



$

439.1


Refining margin*

$

161.9



$

105.5



$

672.1



$

1,018.3


Refining margin adjusted for FIFO impact*

$

139.5



$

132.1



$

620.0



$

1,078.6


Adjusted Petroleum EBITDA*

$

27.7



$

16.4



$

222.8



$

602.0






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

(1)

Direct operating expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses. Selling, general and administrative expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below selling, general and administrative expenses.



















Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(dollars per barrel)

Petroleum Segment Key Operating Statistics:








Per crude oil throughput barrel:








Gross profit (loss)

$

1.81



$

(7.80)



$

2.10



$

6.23


Gross profit (loss) excluding flood insurance recovery*

1.81



(7.80)



2.10



5.84


Refining margin*

8.49



7.16



9.27



14.45


FIFO impact (favorable) unfavorable

(1.17)



1.80



(0.72)



0.86


Refining margin adjusted for FIFO impact*

7.32



8.96



8.55



15.31


Direct operating expenses and major scheduled turnaround expenses

4.96



12.81



5.43



6.79


Direct operating expenses excluding major scheduled turnaround expenses

4.96



7.04



4.99



5.34


Direct operating expenses and major scheduled turnaround expenses per barrel sold

4.64



12.34



5.08



6.40


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

4.64



$

6.79



$

4.67



$

5.04


Barrels sold (barrels per day)

221,921



166,168



211,643



204,708




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


























































Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015

Petroleum Segment Summary Refining Throughput and Production Data (bpd):
















Throughput:
















 Sweet

185,154



82.9

%


151,215



87.7

%


177,256



84.8

%


176,097



86.0

%

 Medium

3,160



1.4

%


209



0.1

%


2,525



1.2

%


2,460



1.2

%

 Heavy sour

19,108



8.6

%


8,715



5.1

%


18,261



8.7

%


14,520



7.1

%

Total crude oil throughput

207,422



92.9

%


160,139



92.9

%


198,042



94.7

%


193,077



94.3

%

All other feedstocks and blendstocks

15,844



7.1

%


12,225



7.1

%


11,077



5.3

%


11,672



5.7

%

Total throughput

223,266



100.0

%


172,364



100.0

%


209,119



100.0

%


204,749



100.0

%

Production:
















 Gasoline

114,682



51.1

%


80,111



46.3

%


108,762



51.9

%


99,961



48.5

%

 Distillate

91,021



40.5

%


70,201



40.6

%


85,092



40.6

%


85,953



41.7

%

 Other (excluding internally produced fuel)

18,782



8.4

%


22,638



13.1

%


15,751



7.5

%


20,074



9.8

%

      Total refining production (excluding internally produced fuel)

224,485



100.0

%


172,950



100.0

%


209,605



100.0

%


205,988



100.0

%

Product price (dollars per gallon):
















 Gasoline

$

1.42





$

1.32





$

1.34





$

1.61




 Distillate

1.52





1.34





1.36





1.62






















Three Months Ended 

December 31,


Year Ended 

 December 31,


2016


2015


2016


2015

Market Indicators (dollars per barrel):








West Texas Intermediate (WTI) NYMEX

$

49.29



$

42.16



$

43.47



$

48.76


Crude Oil Differentials:








    WTI less WTS (light/medium sour)

0.92



0.35



0.85



(0.28)


    WTI less WCS (heavy sour)

15.04



14.45



13.95



13.20


NYMEX Crack Spreads:








  Gasoline

12.96



12.79



15.42



19.89


  Heating Oil

16.45



15.21



13.89



20.93


  NYMEX 2-1-1 Crack Spread

14.70



14.00



14.66



20.41


PADD II Group 3 Product Basis:








    Gasoline

(3.70)



0.26



(3.62)



(2.12)


    Ultra Low Sulfur Diesel

(2.55)



(0.44)



(0.92)



(2.02)


PADD II Group 3 Product Crack Spread:








    Gasoline

9.28



13.05



11.82



17.76


    Ultra Low Sulfur Diesel

13.91



14.76



12.96



18.91


PADD II Group 3 2-1-1

11.60



13.91



12.39



18.34




















Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(in millions, except operating statistics)

Coffeyville Refinery Financial Results:








Net sales

$

854.7



$

522.6



$

2,948.9



$

3,220.6


Cost of materials and other

750.6



490.5



2,513.9



2,626.1


Direct operating expenses(1)

52.0



53.5



196.4



209.1


Major scheduled turnaround expenses



84.9



31.5



102.2


Flood insurance recovery







(27.3)


Depreciation and amortization

18.4



17.5



69.7



72.1


Gross profit (loss)

33.7



(123.8)



137.4



238.4


Add:








Direct operating expenses(1)

52.0



53.5



196.4



209.1


Major scheduled turnaround expenses



84.9



31.5



102.2


Flood insurance recovery







(27.3)


Depreciation and amortization

18.4



17.5



69.7



72.1


Refining Margin*

104.1



32.1



435.0



594.5


FIFO impact, (favorable) unfavorable

(15.4)



17.4



(37.8)



38.0


Refining Margin adjusted for FIFO impact*

$

88.7



$

49.5



$

397.2



$

632.5










Coffeyville Refinery Key Operating Statistics:








Per crude oil throughput barrel:








Gross profit (loss)

$

2.76



$

(17.42)



$

3.03



$

5.77


Gross profit (loss) excluding flood insurance recovery*

2.76



(17.42)



3.03



5.11


Refining margin*

8.55



4.52



9.57



14.37


FIFO impact (favorable) unfavorable

(1.26)



2.45



(0.83)



0.92


Refining margin adjusted for FIFO impact*

7.29



6.97



8.74



15.29


Direct operating expenses and major scheduled turnaround expenses

4.27



19.48



5.02



7.53


Direct operating expenses excluding major scheduled turnaround expenses

4.27



7.53



4.32



5.06


Direct operating expenses and major scheduled turnaround expenses per barrel sold

3.84



18.46



4.54



6.92


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

3.84



$

7.14



$

3.92



$

4.65


Barrels sold (barrels per day)

146,930



81,484



137,047



123,279




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

(1)

Direct operating expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses.



























Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015

Coffeyville Refinery Throughput and Production Data (bpd):
















Throughput:
















 Sweet

113,243



78.4

%


68,452



80.7

%


104,679



78.9

%


96,727



79.5

%

 Medium



%


57



0.1

%


1,229



0.9

%


2,058



1.7

%

 Heavy sour

19,108



13.2

%


8,715



10.3

%


18,261



13.8

%


14,520



11.9

%

Total crude oil throughput

132,351



91.6

%


77,224



91.1

%


124,169



93.6

%


113,305



93.1

%

All other feedstocks and blendstocks

12,206



8.4

%


7,540



8.9

%


8,453



6.4

%


8,400



6.9

%

Total throughput

144,557



100.0

%


84,764



100.0

%


132,622



100.0

%


121,705



100.0

%

Production:
















 Gasoline

75,273



51.1

%


36,493



42.1

%


69,303



51.4

%


57,815



46.5

%

 Distillate

60,550



41.1

%


35,588



41.0

%


55,790



41.4

%


53,136



42.7

%

 Other (excluding internally produced fuel)

11,446



7.8

%


14,655



16.9

%


9,756



7.2

%


13,503



10.8

%

     Total refining production (excluding internally produced fuel)

147,269



100.0

%


86,736



100.0

%


134,849



100.0

%


124,454



100.0

%



















Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(in millions, except operating statistics)

Wynnewood Refinery Financial Results:








Net sales

$

413.6



$

424.6



$

1,478.0



$

1,936.9


Cost of materials and other

356.9



351.8



1,245.4



1,516.3


Direct operating expenses(1)

42.7



49.2



165.5



166.2


Major scheduled turnaround expenses








Depreciation and amortization

12.8



12.6



50.7



50.2


Gross profit

1.2



11.0



16.4



204.2


Add:








Direct operating expenses(1)

42.7



49.2



165.5



166.2


Major scheduled turnaround expenses








Depreciation and amortization

12.8



12.6



50.7



50.2


Refining Margin*

56.7



72.8



232.6



420.6


FIFO impact, (favorable) unfavorable

(7.0)



9.2



(14.2)



22.3


Refining margin adjusted for FIFO impact*

$

49.7



$

82.0



$

218.4



$

442.9










Wynnewood Refinery Key Operating Statistics:








Per crude oil throughput barrel:








Gross profit

$

0.16



$

1.44



$

0.61



$

7.01


Refining margin*

8.20



9.54



8.60



14.44


FIFO impact (favorable) unfavorable

(1.01)



1.20



(0.53)



0.77


Refining margin adjusted for FIFO impact*

7.19



10.74



8.07



15.21


Direct operating expenses and major scheduled turnaround expenses

6.19



6.44



6.12



5.71


Direct operating expenses excluding major scheduled turnaround expenses

6.19



6.44



6.12



5.71


Direct operating expenses and major scheduled turnaround expenses per barrel sold

6.20



6.31



6.06



5.59


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

6.20



$

6.31



$

6.06



$

5.59


Barrels sold (barrels per day)

74,991



84,684



74,596



81,429




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

(1)

Direct operating expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses.



























Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015

Wynnewood Refinery Throughput and Production Data (bpd):
















Throughput:
















 Sweet

71,911



91.4

%


82,763



94.5

%


72,577



94.9

%


79,370



95.6

%

 Medium

3,160



4.0

%


152



0.2

%


1,296



1.7

%


402



0.5

%

 Heavy sour



%




%




%




%

Total crude oil throughput

75,071



95.4

%


82,915



94.7

%


73,873



96.6

%


79,772



96.1

%

All other feedstocks and blendstocks

3,638



4.6

%


4,685



5.3

%


2,624



3.4

%


3,272



3.9

%

Total throughput

78,709



100.0

%


87,600



100.0

%


76,497



100.0

%


83,044



100.0

%

Production:
















 Gasoline

39,409



51.0

%


43,618



50.6

%


39,459



52.8

%


42,146



51.7

%

 Distillate

30,471



39.5

%


34,613



40.1

%


29,302



39.2

%


32,817



40.2

%

 Other (excluding internally produced fuel)

7,336



9.5

%


7,983



9.3

%


5,995



8.0

%


6,571



8.1

%

      Total refining production (excluding internally produced fuel)

77,216



100.0

%


86,214



100.0

%


74,756



100.0

%


81,534



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 approximately 34% of the common units as of December 31, 2016 and serve as the general partner. The financial and operational data for the three months and year ended December 31, 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 year ended December 31, 2016 are included in CVR Partners' press release dated February 16, 2017.


















Three Months Ended 

 December 31,


Year Ended 

 December 31,


2016


2015


2016


2015


(in millions)

Nitrogen Fertilizer Segment Business Financial Results:








Net sales

$

84.9



$

66.0



$

356.3



$

289.2


Cost of materials and other

21.5



9.5



93.7



65.2


Direct operating expenses(1)

37.9



23.3



141.7



99.1


Major scheduled turnaround expenses





6.6



7.0


Depreciation and amortization

17.2



7.2



58.2



28.4


  Cost of sales

76.6



40.0



300.2



199.7


Selling, general and administrative expenses

7.3



5.6



29.3



20.8


  Operating income

1.0



20.4



26.8



68.7


Interest expense and other financing costs

(15.8)



(1.8)



(48.6)



(7.0)


Gain (loss) on extinguishment of debt

0.2





(4.9)




Other income, net

0.1



0.1



0.1



0.3


  Income (loss) before income tax expense

(14.5)



18.7



(26.6)



62.0


Income tax expense





0.3




  Net income (loss)

$

(14.5)



$

18.7



$

(26.9)