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CVR Energy Reports 2017 Second Quarter Results And Announces Cash Dividend of 50 Cents

SUGAR LAND, Texas, July 27, 2017 /PRNewswire/ -- CVR Energy, Inc. (NYSE: CVI) today announced a net loss of $10.5 million, or 12 cents per diluted share, on net sales of $1,434.4 million for the second quarter of 2017, compared to net income of $28.4 million, or 33 cents per diluted share, on net sales of $1,283.2 million for the 2016 second quarter. Second quarter 2017 adjusted EBITDA, a non-GAAP financial measure, was $37.7 million, compared to second quarter 2016 adjusted EBITDA of $64.4 million.

CVR Energy Logo.

For the first six months of 2017, net income was $11.7 million, or 13 cents per diluted share, on net sales of $2,941.5 million, compared to net income of $12.2 million, or 14 cents per diluted share, on net sales of $2,188.7 million for the same period a year earlier. Adjusted EBITDA for the first six months of 2017 was $118.1 million, compared to adjusted EBITDA of $100.6 million for the first six months of 2016.

"CVR Refining reported strong operational results for the 2017 second quarter," said Jack Lipinski, chief executive officer. "The Coffeyville refinery achieved a quarterly crude throughput record and the Wynnewood refinery also continued to run well.

"CVR Partners' fertilizer facilities had solid operational performance during the quarter," Lipinski said. "The East Dubuque facility posted an on-stream rate of 100 percent for its ammonia plant, which is a quarterly record. In addition, the Coffeyville facility's gasification and ammonia plants operated at on-stream rates nearing 100 percent."

Petroleum Business

The petroleum business, which is operated by CVR Refining and includes the Coffeyville and Wynnewood refineries, reported a second quarter 2017 operating loss of $7.4 million on net sales of $1,338.2 million, compared to operating income of $90.1 million on net sales of $1,164.4 million in the second quarter of 2016.

Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $7.48 in the 2017 second quarter, compared to $9.56 during the same period in 2016. Direct operating expenses (exclusive of depreciation and amortization), including major scheduled turnaround expenses, per crude oil throughput barrel, for the 2017 second quarter were $4.44, compared to $4.56 in the second quarter of 2016.

Second quarter 2017 throughputs of crude oil and all other feedstocks and blendstocks totaled 221,954 barrels per day (bpd), compared to second quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks of 210,488 bpd.

Nitrogen Fertilizers Business

The fertilizer business, which is operated by CVR Partners and includes the Coffeyville and East Dubuque fertilizer facilities, reported second quarter 2017 operating income of $12.2 million on net sales of $97.9 million, compared to operating income of $3.7 million on net sales of $119.8 million for the second quarter of 2016.

For the second quarter of 2017, consolidated average realized gate prices for UAN and ammonia were $174 per ton and $333 per ton, respectively. Consolidated average realized gate prices for UAN and ammonia were $199 per ton and $417 per ton, respectively, for the same period in 2016.

CVR Partners' fertilizer facilities produced a combined 215,300 tons of ammonia during the second quarter of 2017, of which 77,500 net tons were available for sale while the rest was upgraded to other fertilizer products, including 313,800 tons of UAN. In the 2016 second quarter, the fertilizer facilities produced 171,500 tons of ammonia, of which 45,600 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 296,500 tons of UAN.

Cash, Debt and Dividend

Consolidated cash and cash equivalents was $829.9 million at June 30, 2017. Consolidated total debt was $1,165.6 million at June 30, 2017. The company had no debt exclusive of CVR Refining's and CVR Partners' debt.

CVR Energy also announced a second quarter 2017 cash dividend of 50 cents per share. The dividend, as declared by CVR Energy's Board of Directors, will be paid on Aug. 14, 2017, to stockholders of record on Aug. 7, 2017. CVR Energy's second quarter cash dividend brings the cumulative cash dividends paid or declared for the first six months of 2017 to $1.00 per share.

Today, CVR Refining and CVR Partners announced that the partnerships will not pay a cash distribution for the 2017 second quarter.

Second Quarter 2017 Earnings Conference Call

CVR Energy previously announced that it will host its second quarter 2017 Earnings Conference Call for analysts and investors on Thursday, July 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/1003/21798. 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/1003/21798. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13666031.

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 balance sheet data as of December 31, 2016).



















Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(in millions, except per share data)

Consolidated Statement of Operations Data:








Net sales

$

1,434.4



$

1,283.2



$

2,941.5



$

2,188.7


Operating costs and expenses:








Cost of materials and other

1,228.6



976.9



2,449.8



1,713.7


Direct operating expenses(1)

124.2



138.3



262.3



279.7


Depreciation and amortization

51.7



48.4



100.4



86.3


Cost of sales

1,404.5



1,163.6



2,812.5



2,079.7


Selling, general and administrative expenses(1)

26.3



26.6



55.4



53.8


Depreciation and amortization

2.3



2.3



4.7



4.4


Operating income

1.3



90.7



68.9



50.8


Interest expense and other financing costs

(27.6)



(18.5)



(54.6)



(30.6)


Interest income

0.3



0.1



0.5



0.3


Gain (loss) on derivatives, net



(1.9)



12.2



(3.1)


Loss on extinguishment of debt



(5.1)





(5.1)


Other income, net

0.1



0.1



0.1



0.4


Income (loss) before income tax expense (benefit)

(25.9)



65.4



27.1



12.7


Income tax expense (benefit)

(6.6)



21.6



8.2



(0.2)


Net income (loss)

(19.3)



43.8



18.9



12.9


Less: Net income (loss) attributable to noncontrolling interest

(8.8)



15.4



7.2



0.7


Net income (loss) attributable to CVR Energy stockholders

$

(10.5)



$

28.4



$

11.7



$

12.2










Basic and diluted earnings (loss) per share

$

(0.12)



$

0.33



$

0.13



$

0.14


Dividends declared per share

$

0.50



$

0.50



$

1.00



$

1.00










Adjusted EBITDA*

$

37.7



$

64.4



$

118.1



$

100.6


Adjusted net income (loss)*

$

(3.3)



$

17.1



$

19.8



$

25.5


Adjusted net income (loss) per diluted share*

$

(0.04)



$

0.20



$

0.23



$

0.29










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 and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses.

 











As of June 30,
2017


As of December
31, 2016




(audited)


(in millions)

Balance Sheet Data:




Cash and cash equivalents

$

829.9



$

735.8


Working capital

740.9



749.6


Total assets

4,029.1



4,050.2


Total debt, including current portion

1,165.6



1,164.6


Total CVR stockholders' equity

783.0



858.1


 



















Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(in millions)

Cash Flow Data:








Net cash flow provided by (used in):








Operating activities

$

104.9



$

48.3



$

242.1



$

69.9


Investing activities

(33.2)



(103.4)



(58.8)



(155.1)


Financing activities

(45.4)



63.9



(89.2)



10.7


Net cash flow

$

26.3



$

8.8



$

94.1



$

(74.5)


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 three and six months ended June 30, 2017 are included in CVR Refining's press release dated July 27, 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 June 30, 2017 and serve as the general partner. On April 1, 2016, CVR Partners completed the merger (the "East Dubuque Merger") whereby CVR Partners acquired a nitrogen fertilizer manufacturing facility located in East Dubuque, Illinois (the "East Dubuque Facility"). The Nitrogen Fertilizer segment consists of a nitrogen fertilizer manufacturing facility located in Coffeyville, Kansas, and the East Dubuque Facility beginning on April 1, 2016, the date of the closing of the acquisition. Detailed operating results for the Nitrogen Fertilizer segment for the three and six months ended June 30, 2017 are included in CVR Partners' press release dated July 27, 2017.



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

Three Months Ended June 30, 2017








Net sales

$

1,338.2



$

97.9



$

(1.7)



$

1,434.4


Cost of materials and other

1,208.0



22.1



(1.5)



1,228.6


Direct operating expenses (1)

83.5



37.7



0.1



121.3


Major scheduled turnaround expenses

2.8



0.1





2.9


Selling, general and administrative

18.9



5.8



1.6



26.3


Depreciation and amortization

32.4



20.0



1.6



54.0


Operating income (loss)

$

(7.4)



$

12.2



$

(3.5)



$

1.3










Capital expenditures

$

27.8



$

4.5



$

0.9



$

33.2


 



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

Six Months Ended June 30, 2017








Net sales

$

2,761.7



$

183.2



$

(3.4)



$

2,941.5


Cost of materials and other

2,409.3



43.9



(3.4)



2,449.8


Direct operating expenses (1)

172.7



73.6



0.2



246.5


Major scheduled turnaround expenses

15.7



0.1





15.8


Selling, general and administrative

38.9



12.7



3.8



55.4


Depreciation and amortization

66.5



35.4



3.2



105.1


Operating income (loss)

$

58.6



$

17.5



$

(7.2)



$

68.9










Capital expenditures

$

47.4



$

8.6



$

1.4



$

57.4


 



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

Three Months Ended June 30, 2016








Net sales

$

1,164.4



$

119.8



$

(1.0)



$

1,283.2


Cost of materials and other

941.9



36.0



(1.0)



976.9


Direct operating expenses (1)

81.9



47.6



0.1



129.6


Major scheduled turnaround expenses

2.1



6.6





8.7


Selling, general and administrative

16.8



8.3



1.5



26.6


Depreciation and amortization

31.6



17.6



1.5



50.7


Operating income (loss)

$

90.1



$

3.7



$

(3.1)



$

90.7










Capital expenditures

$

24.0



$

10.1



$

1.2



$

35.3


 



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

Six Months Ended June 30, 2016








Net sales

$

1,998.4



$

192.9



$

(2.6)



$

2,188.7


Cost of materials and other

1,664.2



52.4



(2.9)



1,713.7


Direct operating expenses (1)

170.2



71.3



0.1



241.6


Major scheduled turnaround expenses

31.5



6.6





38.1


Selling, general and administrative

35.3



14.7



3.8



53.8


Depreciation and amortization

63.1



24.5



3.1



90.7


Operating income (loss)

$

34.1



$

23.4



$

(6.7)



$

50.8










Capital expenditures

$

68.0



$

11.9



$

2.9



$

82.8




______________________________

(1)

Excluding turnaround expenses.

 



















Petroleum
(CVR
Refining)


Nitrogen
Fertilizer
(CVR
Partners)


Corporate and
Other


Consolidated


(in millions)

June 30, 2017








Cash and cash equivalents

$

515.7



$

51.7



$

262.5



$

829.9


Total assets

2,447.1



1,280.6



301.4



4,029.1


Total debt, including current portion

541.1



624.5





1,165.6










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


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 three and six months ended June 30, 2017 are included in CVR Refining's press release dated July 27, 2017.



















Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(in millions)

Petroleum Segment Summary Financial Results:








Net sales

$

1,338.2



$

1,164.4



$

2,761.7



$

1,998.4


Operating costs and expenses:








Cost of materials and other

1,208.0



941.9



2,409.3



1,664.2


Direct operating expenses(1)

83.5



81.9



172.7



170.2


Major scheduled turnaround expenses

2.8



2.1



15.7



31.5


Depreciation and amortization

31.7



30.9



65.0



61.8


Cost of sales

1,326.0



1,056.8



2,662.7



1,927.7


Selling, general and administrative expenses(1)

18.9



16.8



38.9



35.3


Depreciation and amortization

0.7



0.7



1.5



1.3


Operating income (loss)

(7.4)



90.1



58.6



34.1


Interest expense and other financing costs

(12.0)



(10.1)



(23.2)



(20.9)


Interest income

0.2





0.2




Gain (loss) on derivatives, net



(1.9)



12.2



(3.1)


Income (loss) before income tax expense

(19.2)



78.1



47.8



10.1


Income tax expense








Net income (loss)

$

(19.2)



$

78.1



$

47.8



$

10.1










Gross profit

$

12.2



$

107.6



$

99.0



$

70.7


Refining margin*

$

130.2



$

222.5



$

352.4



$

334.2


Refining margin adjusted for FIFO impact*

$

145.6



$

176.3



$

368.1



$

296.8


Adjusted Petroleum EBITDA*

$

43.1



$

84.7



$

157.6



$

119.8


______________________________

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



(1)

Direct operating expense and selling, general and administrative expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses.

 



















Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(dollars per barrel)

Petroleum Segment Key Operating Statistics:








Per crude oil throughput barrel:








Gross profit

$

0.63



$

5.84



$

2.56



$

2.01


Refining margin*

6.69



12.07



9.10



9.50


FIFO impact, (favorable) unfavorable

0.79



(2.51)



0.41



(1.06)


Refining margin adjusted for FIFO impact*

7.48



9.56



9.51



8.44


Direct operating expenses and major scheduled turnaround expenses

4.44



4.56



4.86



5.73


Direct operating expenses excluding major scheduled turnaround expenses

4.29



4.45



4.46



4.84


Direct operating expenses and major scheduled turnaround expenses per barrel sold

4.12



4.33



4.54



5.34


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

3.98



$

4.22



$

4.16



$

4.50


Barrels sold (barrels per day)

230,345



213,368



229,439



207,669


______________________________

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

 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,

Petroleum Segment Summary

2017


2016


2017


2016

 Refining Throughput and Production Data (bpd):
















Throughput:
















Sweet

202,070



91.0

%


176,674



83.9

%


199,973



88.8

%


173,700



85.5

%

Medium



%


3,429



1.6

%




%


2,471



1.2

%

Heavy sour

11,771



5.3

%


22,433



10.7

%


14,130



6.3

%


17,174



8.5

%

Total crude oil throughput

213,841



96.3

%


202,536



96.2

%


214,103



95.1

%


193,345



95.2

%

All other feedstocks and blendstocks

8,113



3.7

%


7,952



3.8

%


11,161



4.9

%


9,827



4.8

%

Total throughput

221,954



100.0

%


210,488



100.0

%


225,264



100.0

%


203,172



100.0

%

Production:
















Gasoline

112,284



50.4

%


108,330



51.3

%


115,600



51.2

%


107,105



52.7

%

Distillate

96,578



43.4

%


86,622



41.0

%


93,260



41.3

%


82,309



40.5

%

Other (excluding internally produced fuel)

13,775



6.2

%


16,280



7.7

%


17,019



7.5

%


13,900



6.8

%

Total refining production (excluding internally produced fuel)

222,637



100.0

%


211,232



100.0

%


225,879



100.0

%


203,314



100.0

%

Product price (dollars per gallon):
















Gasoline

$

1.52





$

1.44





$

1.53





$

1.24




Distillate

1.51





1.37





1.54





1.22




 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016

Market Indicators (dollars per barrel):








West Texas Intermediate (WTI) NYMEX

$

48.15



$

45.64



$

49.95



$

39.78


Crude Oil Differentials:








WTI less WTS (light/medium sour)

1.06



0.83



1.24



0.49


WTI less WCS (heavy sour)

10.00



12.92



11.88



13.26


NYMEX Crack Spreads:








Gasoline

18.07



19.13



16.39



17.53


Heating Oil

15.11



12.82



15.32



12.37


NYMEX 2-1-1 Crack Spread

16.59



15.98



15.85



14.95


PADD II Group 3 Basis:








Gasoline

(3.95)



(5.49)



(2.96)



(5.68)


Ultra Low Sulfur Diesel

(0.62)



(1.18)



(1.10)



(1.10)


PADD II Group 3 Product Crack Spread:








Gasoline

14.12



13.64



13.42



11.85


Ultra Low Sulfur Diesel

14.49



11.63



14.23



11.27


PADD II Group 3 2-1-1

14.30



12.64



13.82



11.56


 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(in millions, except operating statistics)

Coffeyville Refinery Financial Results:








Net sales

$

859.8



$

778.0



$

1,811.1



$

1,306.0


Cost of materials and other

773.5



630.7



1,581.9



1,093.4


Direct operating expenses(1)

47.5



46.1



98.2



93.8


Major scheduled turnaround expenses



2.1





31.5


Depreciation and amortization

17.4



16.7



36.4



33.5


Gross profit

21.4



82.4



94.6



53.8


Add:








Direct operating expenses(1)

47.5



46.1



98.2



93.8


Major scheduled turnaround expenses



2.1





31.5


Depreciation and amortization

17.4



16.7



36.4



33.5


Refining margin*

86.3



147.3



229.2



212.6


FIFO impact, (favorable) unfavorable

10.1



(30.2)



11.6



(26.4)


Refining margin adjusted for FIFO impact*

$

96.4



$

117.1



$

240.8



$

186.2










Coffeyville Refinery Key Operating Statistics:








Per crude oil throughput barrel:








Gross profit

$

1.76



$

7.11



$

3.95



$

2.53


Refining margin*

7.09



12.71



9.57



9.99


FIFO impact, (favorable) unfavorable

0.83



(2.62)



0.49



(1.24)


Refining margin adjusted for FIFO impact*

7.92



10.09



10.06



8.75


Direct operating expenses and major scheduled turnaround expenses

3.90



4.16



4.10



5.89


Direct operating expenses excluding major scheduled turnaround expenses

3.90



3.98



4.10



4.41


Direct operating expenses and major scheduled turnaround expenses per barrel sold

3.61



3.84



3.74



5.28


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

3.61



$

3.67



$

3.74



$

3.95


Barrels sold (barrels per day)

144,479



138,021



145,014



130,429


______________________________

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



(1)

Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.

 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016

Coffeyville Refinery Throughput and Production Data (bpd):
















Throughput:
















Sweet

122,048



87.3

%


101,548



76.2

%


118,167



84.0

%


97,242



78.1

%

Medium



%


3,429



2.6

%




%


2,471



2.0

%

Heavy sour

11,771



8.4

%


22,433



16.8

%


14,130



10.0

%


17,174



13.8

%

Total crude oil throughput

133,819



95.7

%


127,410



95.6

%


132,297



94.0

%


116,887



93.9

%

All other feedstocks and blendstocks

6,077



4.3

%


5,844



4.4

%


8,482



6.0

%


7,594



6.1

%

Total throughput

139,896



100

%


133,254



100.0

%


140,779



100

%


124,481



100.0

%

Production:
















Gasoline

70,032



49.3

%


67,819



49.9

%


72,271



50.5

%


65,927



52.2

%

Distillate

59,703



42.1

%


57,549



42.4

%


59,573



41.6

%


52,348



41.4

%

Other (excluding internally produced fuel)

12,146



8.6

%


10,491



7.7

%


11,246



7.9

%


8,130



6.4

%

Total refining production (excluding internally produced fuel)

141,881



100

%


135,859



100.0

%


143,090



100

%


126,405



100.0

%

 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(in millions, except operating statistics)

Wynnewood Refinery Financial Results:








Net sales

$

477.3



$

385.3



$

948.4



$

690.1


Cost of materials and other

434.6



311.3



827.7



570.7


Direct operating expenses(1)

36.0



35.8



74.6



76.4


Major scheduled turnaround expenses

2.8





15.7




Depreciation and amortization

12.8



12.6



25.6



25.2


Gross profit (loss)

(8.9)



25.6



4.8



17.8


Add:








Direct operating expenses(1)

36.0



35.8



74.6



76.4


Major scheduled turnaround expenses

2.8





15.7




Depreciation and amortization

12.8



12.6



25.6



25.2


Refining margin*

42.7



74.0



120.7



119.4


FIFO impact, (favorable) unfavorable

5.2



(15.9)



4.1



(11.0)


Refining margin adjusted for FIFO impact*

$

47.9



$

58.1



$

124.8



$

108.4










Wynnewood Refinery Key Operating Statistics:








Per crude oil throughput barrel:








Gross profit (loss)

$

(1.23)



$

3.74



$

0.33



$

1.27


Refining margin*

5.87



10.83



8.15



8.58


FIFO impact, (favorable) unfavorable

0.72



(2.32)



0.28



(0.79)


Refining margin adjusted for FIFO impact*

6.59



8.51



8.43



7.79


Direct operating expenses and major scheduled turnaround expenses

5.33



5.24



6.10



5.49


Direct operating expenses excluding major scheduled turnaround expenses

4.95



5.24



5.04



5.49


Direct operating expenses and major scheduled turnaround expenses

per barrel sold

4.97



5.22



5.91



5.44


Direct operating expenses excluding major scheduled turnaround expenses per barrel sold

$

4.61



$

5.22



$

4.88



$

5.44


Barrels sold (barrels per day)

85,866



75,347



84,425



77,239


______________________________

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



(1)

Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.

 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016

Wynnewood Refinery Throughput and Production Data (bpd):
















Throughput:
















Sweet

80,022



97.5

%


75,126



97.3

%


81,806



96.8

%


76,458



97.2

%

Medium



%




%




%




%

Heavy sour



%




%




%




%

Total crude oil throughput

80,022



97.5

%


75,126



97.3

%


81,806



96.8

%


76,458



97.2

%

All other feedstocks and blendstocks

2,036



2.5

%


2,108



2.7

%


2,679



3.2

%


2,233



2.8

%

Total throughput

82,058



100.0

%


77,234



100.0

%


84,485



100.0

%


78,691



100.0

%

Production:
















Gasoline

42,252



52.3

%


40,511



53.7

%


43,329



52.3

%


41,178



53.5

%

Distillate

36,875



45.7

%


29,073



38.6

%


33,687



40.7

%


29,961



39.0

%

Other (excluding internally produced fuel)

1,629



2.0

%


5,789



7.7

%


5,773



7.0

%


5,770



7.5

%

Total refining production (excluding internally produced fuel)

80,756



100.0

%


75,373



100.0

%


82,789



100.0

%


76,909



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 June 30, 2017 and serve as the general partner. The financial and operational data include the results of 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 three and six months ended June 30, 2017 are included in CVR Partners' press release dated July 27, 2017 .



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016


(in millions)

Nitrogen Fertilizer Segment Business Financial Results:








Net sales

$

97.9



$

119.8



$

183.2



$

192.9


Cost of materials and other

22.1



36.0



43.9



52.4


Direct operating expenses(1)

37.7



47.6



73.6



71.3


Major scheduled turnaround expenses

0.1



6.6



0.1



6.6


Depreciation and amortization

20.0



17.6



35.4



24.5


Cost of sales

79.9



107.8



153.0



154.8


Selling, general and administrative expenses

5.8



8.3



12.7



14.7


Operating income

12.2



3.7



17.5



23.4


Interest expense and other financing costs

(15.7)



(15.5)



(31.4)



(17.2)


Loss on extinguishment of debt



(5.1)





(5.1)


Other income, net





0.1




Income (loss) before income tax expense

(3.5)



(16.9)



(13.8)



1.1


Income tax expense



0.1





0.1


Net income (loss)

$

(3.5)



$

(17.0)



$

(13.8)



$

1.0










Adjusted Nitrogen Fertilizer EBITDA*

$

32.3



$

29.1



$

53.1



$

57.0




______________________________

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



(1)

Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.

 



Three Months Ended 

 June 30,


Six Months Ended 

 June 30,


2017


2016


2017


2016

Nitrogen Fertilizer Segment Key Operating Statistics:
















Consolidated sales (thousand tons):








Ammonia

74.6



73.6



136.5



98.0


UAN

330.9



339.4



652.5



606.4










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








Ammonia

$

333



$

417



$

322



$

405


UAN

$

174



$

199



$

167



$

204










Consolidated production volume (thousand tons):








Ammonia (gross produced) (2)

215.3



171.5



434.5



285.1


Ammonia (net available for sale) (2)

77.5



45.6



157.5



60.7


UAN

313.8



296.5



655.7



544.7










Feedstock:








Petroleum coke used in production (thousand tons)

124.0



130.6



256.6



257.5


Petroleum coke used in production (dollars per ton)

$

21



$

12



$

17



$

15


Natural gas used in production (thousands of MMBtus)

2,134.0



1,396.1



4,225.3



1,396.1


Natural gas used in production (dollars per MMBtu)(3)

$

3.18



$

2.41



$

3.29



$

2.41


Natural gas in cost of materials and other (thousands of MMBtus)

2,487.4



1,063.0



3,963.4



1,063.0


Natural gas in cost of materials and other (dollars per MMBtu)(3)

$