UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
___________________________________
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
___________________________________
Date
of Report (Date of earliest event reported): May 15, 2008
CVR
ENERGY, INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
(State
or other jurisdiction of
incorporation)
|
001-33492
(Commission File
Number)
|
61-1512186
(I.R.S.
Employer
Identification
Number)
|
|
2277
Plaza Drive, Suite 500
Sugar
Land, Texas 77479
(Address
of principal
executive offices)
|
Registrant’s
telephone number, including area
code: (281)
207-3200
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item 2.02. Results of
Operations and Financial Condition.
On May
15, 2008, CVR Energy, Inc. (the “Company”) issued a press release announcing
information regarding its results of operations and financial condition for the
quarter ended March 31, 2008, a copy of which is attached hereto as
Exhibit 99.1.
The
information in Item 2.02 of this Current Report on Form 8-K and
Exhibit 99.1 attached hereto are being furnished pursuant to Item 2.02
of Form 8-K and shall not, except to the extent required by applicable law or
regulation, be deemed filed by the Company for purposes of Section 18 of
the Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that Section, nor shall it be deemed incorporated by reference
into any filing under the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended.
To supplement the Company’s consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles (“GAAP”), the
Company uses two non-GAAP measures: (1) net income (loss) adjusted
for unrealized gain or loss from Cash Flow Swap and (2) refining
margin.
Net income (loss) adjusted for unrealized gain or loss from Cash Flow Swap is
adjusted from results based on GAAP. In managing the Company’s business and
assessing its growth and profitability from a strategic and financial planning
perspective, the Company’s management and board of directors considers the
Company’s GAAP net income results as well as net income (loss) adjusted for
unrealized gain or loss from Cash Flow Swap. The Company believes that net
income (loss) adjusted for unrealized gain or loss from Cash Flow Swap enhances
the understanding of the Company’s results of operations by highlighting income
attributable to its ongoing operating performance exclusive of charges and
income resulting from mark to market adjustments that are not necessarily
indicative of the performance of the Company’s underlying business and its
industry. Net income (loss) adjusted for unrealized gain or loss from Cash Flow
Swap is not a recognized term under GAAP and should not be substituted for net
income as a measure of the Company’s performance but instead should be utilized
as a supplemental measure of financial performance or liquidity in evaluating
the Company’s business.
Refining margin is calculated as the difference between net sales and cost of
product sold (exclusive of depreciation and amortization). Both of these
components are taken directly from the Company’s statement of operations.
Refining margin is a non-GAAP measure that the Company believes is important to
investors in evaluating the refinery’s performance as a general indicator of the
amount above cost of product sold (exclusive of depreciation and amortization)
for which the Company is able to sell refined products. The Company’s
calculation of refining margin may differ from similar calculations of other
companies in the industry, thereby limiting its usefulness as a comparative
measure.
Item 9.01. Financial
Statements and Exhibits.
(d)
Exhibits.
The
following exhibit is being furnished as part of this Current Report on Form
8-K:
|
99.1
|
Press
release, dated May 15, 2008, issued by CVR Energy, Inc. pertaining to its
results of operations and financial condition for the quarter ended March
31, 2008.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: May
15, 2008
|
CVR ENERGY,
INC.
|
|||
| By: | /s/ James T. Rens | ||
| James T. Rens | |||
| Chief Financial Officer and Treasurer | |||
EXHIBIT
INDEX
|
Exhibit
No.
|
Title
|
|
|
99.1
|
Press
release, dated May 15, 2008, issued by CVR Energy, Inc. pertaining to its
results of operations and financial condition for the quarter ended March
31, 2008.
|
Exhibit 99.1
CVR
Energy Reports Profitable First Quarter
SUGAR LAND, Texas (May 15, 2008) –
CVR Energy, Inc. (NYSE: CVI), a refiner of petroleum fuels and a
manufacturer and marketer of nitrogen fertilizer products, today reported first
quarter 2008 net income of $22.2 million, or $0.26 per fully diluted share, on
operating income of $87.4 million.
The 2008
earnings compare with a net loss of $154.4 million, or a pro forma loss of $1.79
per fully diluted share, in the first quarter of 2007. The results
for the first quarter of 2007 reflected a full refinery maintenance turnaround
and downtime associated with an expansion project conducted at the company’s
refinery in Coffeyville, Kan., during that quarter.
“CVR
Energy achieved these results in a challenging margin environment for U.S.
refiners. Counterbalancing moderately weak refining margins was a
strong and improving price environment for nitrogen fertilizer products,” said
CEO Jack Lipinski. “We believe the mid-continent location of our
refinery and the low-cost, highly efficient nitrogen fertilizer production
facility continue to provide us with advantages that differentiate us from
pure-play refiners.
“Refining
operations benefit from our ability to process numerous crude oils, including
Canadian heavy crude, and the ability to supply products into markets in the
mid-continent and Rocky Mountain areas. Historically, these areas have provided
higher netback prices than those achieved in either the East or Gulf Coasts,” he
said.
CVR
Energy became a publicly held company trading on the New York Stock Exchange in
October 2007. This first quarter represents the company’s first full quarter of
operations as a public company.
“Net
income adjusted for unrealized gain or loss from Cash Flow Swap” was $30.6
million in the first quarter of 2008 compared with an adjusted net loss of $82.4
million in the first quarter of 2007.
CVR
Energy’s 2008 first quarter results included $5.8 million of pretax expense, net
of insurance recoveries, associated with a mid-year flood in 2007.
Petroleum
Business
The
petroleum segment reported first quarter 2008 operating income of $63.6 million
on net sales of $1,168.5 million, compared with an operating loss for the same
period in 2007 of $63.5 million on net sales of $352.5 million. The
results for the first quarter of 2008 benefited from a first-in, first-out
(FIFO) accounting gain of $20.0 million compared with a FIFO gain of $5.2
million in the first quarter of 2007.
Crude oil
throughput for the quarter averaged 106,530 barrels per day compared with 47,267
barrels per day for the same period in 2007, which was adversely impacted by the
scheduled turnaround. Refining margin per barrel, including the impact of the
FIFO accounting gain, increased to $13.76 in the first quarter of 2008, up from
$12.69 during the same period in 2007. Gross profit per barrel
increased to $7.50 in the first quarter of 2008, up from a loss of $12.34 in the
same period in 2007.
Nitrogen
Fertilizer Business
Nitrogen
fertilizer operations reported first quarter 2008 operating income of $26.0
million on net sales of $62.6 million, compared with operating income of $9.3
million on net sales of $38.6 million during the equivalent period in
2007.
Higher
prices for ammonia and urea ammonium nitrate (UAN) were the most significant
contributors to the increase in operating income and were partially offset by
lower production and higher operating expenses.
For the
first quarter 2008, average plant sale prices for ammonia and UAN were $494 per
ton and $262 per ton respectively, compared with $347 per ton and $169 per ton
respectively for the equivalent period in 2007. Nitrogen Fertilizers
produced 83,700 tons of ammonia and 150,100 tons of UAN during the first quarter
of 2008, compared with 86,200 tons of ammonia and 165,700 tons of UAN in the
equivalent period of 2007.
#
# #
This news
release contains forward-looking statements within the meaning of Section 27A of
the Securities Act 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," "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 SEC filings, including our Form 10-K/A for the year ended December 31,
2007. 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. The Company undertakes no
duty to update its forward-looking statements.
About CVR Energy,
Inc.
Headquartered
in Sugar Land, Texas, CVR Energy, Inc.’s subsidiary and affiliated businesses
include an independent refiner that operates a 113,500 barrel per day refinery
in Coffeyville, Kan., and markets high-value transportation fuels supplied to
customers through tanker trucks and pipeline terminals; a crude oil gathering
system serving central Kansas, northern Oklahoma and southwest Nebraska; an
asphalt and refined fuels storage and terminal business in Phillipsburg, Kan.;
and through a limited partnership, an ammonia and urea ammonium nitrate
fertilizer business located in Coffeyville, Kan.
For
further information, please contact:
Investor
Relations: Media
Relations:
Stirling
Pack,
Jr. Steve
Eames
CVR
Energy,
Inc. CVR
Energy, Inc.
281-207-3464 281-207-3550
InvestorRelations@CVREnergy.com MediaRelations@CVREnergy.com
CVR
Energy, Inc.
The
following tables summarize the financial data and key operating statistics for
CVR and our two operating segments for the three months ended March 31, 2008 and
2007. Select balance sheet data is as of March 31, 2008, and December
31, 2007. The summary financial data for our two operating segments does
not include certain SG&A expenses and depreciation and amortization related
to our corporate offices.
|
Three
Months Ended
March
31,
|
||||||||
|
2008
|
2007
|
|||||||
|
(in
millions, except as otherwise indicated)
|
||||||||
|
Consolidated
Statement of Operations Data:
|
(unaudited)
|
(unaudited)
|
||||||
|
Net
sales
|
$ | 1,223.0 | $ | 390.5 | ||||
|
Cost
of product sold (exclusive of depreciation and
amortization)
|
1,036.2 | 303.7 | ||||||
|
Direct
operating expenses (exclusive of depreciation and
amortization)
|
60.6 | 113.4 | ||||||
|
Selling,
general and administrative expenses (exclusive of depreciation and
amortization)
|
13.4 | 13.2 | ||||||
|
Net
costs associated with flood (1)
|
5.8 | — | ||||||
|
Depreciation
and amortization
|
19.6 | 14.2 | ||||||
|
Operating
income (loss)
|
$ | 87.4 | $ | (54.0 | ) | |||
|
Other
income, net
|
0.9 | 0.5 | ||||||
|
Interest
expense and other financing costs
|
(11.3 | ) | (11.9 | ) | ||||
|
Loss
on derivatives, net
|
(47.9 | ) | (137.0 | ) | ||||
|
Income
(loss) before income taxes and minority interest in (income) loss of
subsidiaries
|
$ | 29.1 | $ | (202.4 | ) | |||
|
Income
tax (expense) benefit
|
(6.9 | ) | 47.3 | |||||
|
Minority
interest in (income) loss of subsidiaries
|
— | 0.7 | ||||||
|
Net
income (loss)
|
$ | 22.2 | $ | (154.4 | ) | |||
|
Net
earnings per shares
|
||||||||
|
Basic
|
$ | 0.26 | ||||||
|
Diluted
|
$ | 0.26 | ||||||
|
Weighted
average shares
|
||||||||
|
Basic
|
86,141,291 | |||||||
|
Diluted
|
86,158,791 | |||||||
|
Pro
Forma Information
Net
(loss) per share:
|
||||||||
|
Basic
|
$ | (1.79 | ) | |||||
|
Diluted
|
$ | (1.79 | ) | |||||
|
Weighted
average shares:
|
||||||||
|
Basic
|
86,141,291 | |||||||
|
Diluted
|
86,141,291 | |||||||
|
As
of March 31,
|
As
of December 31,
|
|||||||
|
2008
|
2007
|
|||||||
|
(in
millions, except as otherwise indicated)
|
||||||||
|
(unaudited)
|
(unaudited)
|
|||||||
|
Balance
Sheet Data:
Cash
and cash equivalents
|
$ | 25.2 | $ | 30.5 | ||||
|
Working
capital
|
21.5 | 10.7 | ||||||
|
Total
assets
|
1,923.6 | 1,868.4 | ||||||
|
Total
debt, including current portion
|
499.2 | 500.8 | ||||||
|
Minority
interest in subsidiaries
|
10.6 | 10.6 | ||||||
|
Stockholders'
equity
|
455.1 | 432.7 | ||||||
|
Three
Months Ended
March
31,
|
||||||||
|
2008
|
2007
|
|||||||
|
(in
millions, except as otherwise indicated)
|
||||||||
|
Other
Financial Data:
|
(unaudited)
|
(unaudited)
|
||||||
|
Depreciation
and amortization
|
$ | 19.6 | $ | 14.2 | ||||
|
Net
Income (loss) adjusted for unrealized gain or loss from Cash Flow Swap
(2)
|
30.6 | (82.4 | ) | |||||
|
Cash
flows provided by operating activities
|
24.2 | 44.1 | ||||||
|
Cash
flows (used in) investing activities
|
(26.2 | ) | (107.4 | ) | ||||
|
Cash
flows (used in) provided by financing activities
|
(3.4 | ) | 29.0 | |||||
|
Capital
expenditures for property, plant and equipment
|
26.2 | 107.4 | ||||||
Reconciliation
of net income (loss) adjusted for unrealized gain or loss from Cash Flow Swap to
net income (loss) (2):
|
Three
Months Ended March 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
(in
millions, except as otherwise indicated)
|
||||||||
|
(unaudited)
|
(unaudited)
|
|||||||
|
Net
income (loss) adjusted for unrealized loss from Cash Flow
Swap
|
$ | 30.6 | $ | (82.4 | ) | |||
|
Plus:
|
||||||||
|
Unrealized
(loss) from Cash Flow Swap, net of taxes
|
(8.4 | ) | (72.0 | ) | ||||
|
Net
income (loss)
|
$ | 22.2 | $ | (154.4 | ) | |||
|
Three
Months Ended
March
31,
|
||||||||
|
2008
|
2007
|
|||||||
|
(in
millions, except as otherwise indicated)
|
||||||||
|
(unaudited)
|
(unaudited)
|
|||||||
|
Petroleum
Business:
Net
sales
|
$ | 1,168.5 | $ | 352.5 | ||||
|
Cost
of product sold (exclusive of depreciation and
amortization)
|
1,035.1 | 298.5 | ||||||
|
Direct
operating expenses (exclusive of depreciation and
amortization)
|
40.3 | 96.7 | ||||||
|
Net
costs associated with flood
|
5.5 | — | ||||||
|
Depreciation
and amortization
|
14.9 | 9.8 | ||||||
|
Gross
profit (loss)
|
$ | 72.7 | $ | (52.5 | ) | |||
|
Plus
direct operating expenses (exclusive of depreciation and
amortization)
|
40.3 | 96.7 | ||||||
|
Plus
net costs associated with flood
|
5.5 | — | ||||||
|
Plus
depreciation and amortization
|
14.9 | 9.8 | ||||||
|
Refining
margin (3)
|
$ | 133.4 | $ | 54.0 | ||||
|
Operating
income (loss)
|
63.6 | (63.5 | ) | |||||
|
Three
Months Ended
March
31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Petroleum Operating
Statistics
|
(unaudited)
|
(unaudited)
|
||||||
|
Per
barrel profit, margin and expense of crude oil throughput:
|
||||||||
|
Refining
margin
|
$ | 13.76 | $ | 12.69 | ||||
|
Gross
profit
(loss)
|
7.50 | (12.34 | ) | |||||
|
Direct
operating expenses (exclusive of depreciation and
amortization)
|
4.16 | 22.73 | ||||||
|
Per
gallon sales
price:
|
||||||||
|
Gasoline
|
2.45 | 1.59 | ||||||
|
Distillate
|
2.85 | 1.78 | ||||||
|
Three
Months Ended
March
31,
|
||||||||||||||||
|
2008
|
2007
|
|||||||||||||||
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
|
Selected Company
Volumetric Data
|
Barrels
Per Day
|
%
|
Barrels
Per Day
|
%
|
||||||||||||
|
Production:
|
||||||||||||||||
|
Total
gasoline
|
59,662 | 47.5 | 23,499 | 43.8 | ||||||||||||
|
Total
distillate
|
48,591 | 38.7 | 21,976 | 40.9 | ||||||||||||
|
Total
other
|
17,361 | 13.8 | 8,214 | 15.3 | ||||||||||||
|
Total
all
production
|
125,614 | 100.0 | 53,689 | 100.0 | ||||||||||||
|
Crude
oil
throughput
|
106,530 | 89.0 | 47,267 | 92.7 | ||||||||||||
|
All
other
inputs
|
13,197 | 11.0 | 3,716 | 7.3 | ||||||||||||
|
Total
feedstocks
|
119,727 | 100.0 | 50,983 | 100.0 | ||||||||||||
|
Three
Months Ended March 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Market
Indicators
|
||||||||
|
West
Texas Intermediate (WTI) crude oil
|
$ | 97.82 | $ | 58.27 | ||||
|
NYMEX
2-1-1 Crack Spread
|
11.81 | 12.17 | ||||||
|
Crude
Oil Differentials:
|
||||||||
|
WTI
less WTS (sour)
|
4.63 | 4.26 | ||||||
|
WTI
less WCS (heavy sour)
|
19.84 | 14.80 | ||||||
|
WTI
less Dated Brent (foreign)
|
1.10 | 0.51 | ||||||
|
PADD
II Group 3 versus NYMEX Basis:
|
||||||||
|
Gasoline
|
(1.46 | ) | (0.54 | ) | ||||
|
Heating
Oil
|
3.65 | 8.77 | ||||||
|
PADD
II Group 3 versus NYMEX Crack:
|
||||||||
|
Gasoline
|
4.95 | 12.43 | ||||||
|
Heating
Oil
|
20.77 | 20.57 | ||||||
|
Three
Months Ended March 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Nitrogen
Fertilizer Business
|
(unaudited)
|
(unaudited)
|
||||||
|
Net
sales
|
$ | 62.6 | $ | 38.6 | ||||
|
Cost
of product sold (exclusive of depreciation and
amortization)
|
8.9 | 6.1 | ||||||
|
Direct
operating expenses (exclusive of depreciation and
amortization)
|
20.3 | 16.7 | ||||||
|
Depreciation
and amortization
|
4.5 | 4.4 | ||||||
|
Operating
income
|
26.0 | 9.3 | ||||||
|
Nitrogen
Fertilizer Operating Statistics
|
||||||||
|
Production
(thousand tons):
|
||||||||
|
Ammonia
|
83.7 | 86.2 | ||||||
|
UAN
|
150.1 | 165.7 | ||||||
|
Total
|
233.8 | 251.9 | ||||||
|
Sales
(thousand tons):
|
||||||||
|
Ammonia
|
24.1 | 20.7 | ||||||
|
UAN
|
158.0 | 166.8 | ||||||
|
Total
|
182.1 | 187.5 | ||||||
|
Product
pricing (plant gate) (dollars per ton) (4):
|
||||||||
|
Ammonia
|
$ | 494 | $ | 347 | ||||
|
UAN
|
262 | 169 | ||||||
|
On-stream
factor (5):
|
||||||||
|
Gasification
|
91.8 | % | 91.8 | % | ||||
|
Ammonia
|
90.7 | % | 86.3 | % | ||||
|
UAN
|
85.9 | % | 89.4 | % | ||||
|
(1)
|
Represents
the approximate net costs associated with the flood and oil spill that are
not probable of recovery from
insurance.
|
|
(2)
|
Net
income (loss) adjusted for net unrealized loss from Cash Flow Swap results
from adjusting for the derivative transaction that was executed in
conjunction with the acquisition of Coffeyville Group Holdings, LLC by
Coffeyville Acquisition LLC on June 24, 2005. On June 16, 2005,
Coffeyville Acquisition LLC entered into the Cash Flow Swap with J. Aron,
a subsidiary of The Goldman Sachs Group, Inc., and a related party of
ours. The Cash Flow Swap was subsequently assigned from
Coffeyville Acquisition LLC to Coffeyville Resources, LLC on June 24,
2005. The derivative took the form of three NYMEX swap
agreements whereby if crack spreads fall below the fixed level, J. Aron
agreed to pay the difference to us, and if crack spreads rise above the
fixed level, we agreed to pay the difference to J.
Aron. Assuming crude oil capacity of 115,000 bpd, the Cash Flow
Swap represents approximately 58% and 14% of crude oil capacity for the
periods January 1, 2008 through June 30, 2009 and July 1, 2009 through
June 30, 2010, respectively. Under the terms of our Credit
Facility and upon meeting specific requirements related to our leverage
ratio and our credit ratings, we may reduce the Cash Flow Swap to 35,000
bpd, or approximately 30% of executed crude oil capacity, for the period
from April 1, 2008 through December 31, 2008 and terminate the Cash Flow
Swap in 2009 and 2010.
|
|
|
We
have determined that the Cash Flow Swap does not qualify as a hedge for
hedge accounting purposes under current GAAP. As a result, our
periodic statements of operations reflect in each period material amounts
of unrealized gains and losses based on the increases or decreases in
market value of the unsettled position under the swap agreements which is
accounted for as a liability on our balance sheet. As the crack
spreads increase we are required to record an increase in this liability
account with a corresponding expense entry to be made to our statement of
operations. Conversely, as crack spreads decline we are
required to record a decrease in the swap related liability and post a
corresponding income entry to our statement of
operations. Because of this inverse relationship between the
economic outlook for our underlying business (as represented by crack
spread levels) and the income impact of the unrecognized gains and losses,
and given the significant periodic fluctuations in the amounts of
unrealized gains and losses, management utilizes Net income (loss)
adjusted for unrealized loss from Cash Flow Swap as a key indicator of our
business performance. In managing our business and assessing
its growth and profitability from a strategic and financial planning
perspective, management and our board of directors considers our U.S. GAAP
net income results as well as Net income (loss) adjusted for unrealized
loss from Cash Flow Swap. We believe that Net income (loss)
adjusted for unrealized loss from Cash Flow Swap enhances the
understanding of our results of operations by highlighting income
attributable to our ongoing operating performance exclusive of charges and
income resulting from mark to market adjustments that are not necessarily
indicative of the performance of our underlying business and our
industry. The adjustment has been made for the unrealized loss
from Cash Flow Swap net of its related tax
benefit.
|
|
|
Net
income (loss) adjusted for unrealized loss from Cash Flow Swap is not a
recognized term under GAAP and should not be substituted for net income as
a measure of our performance but instead should be utilized as a
supplemental measure of financial performance or liquidity in evaluating
our business. Because Net income (loss) adjusted for unrealized
loss from Cash Flow Swap excludes mark to market adjustments, the measure
does not reflect the fair market value of our Cash Flow Swap in our net
income. As a result, the measure does not include potential
cash payments that may be required to be made on the Cash Flow Swap in the
future. Also, our presentation of this non-GAAP measure may not
be comparable to similarly titled measures of other
companies.
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(3)
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Refining
margin is a measurement calculated as the difference between net sales and
cost of product sold (exclusive of depreciation and
amortization). Refining margin is a non-GAAP measure that we
believe is important to investors in evaluating our refinery's performance
as a general indication of the amount above our cost of product sold that
we are able to sell refined products. Each of the components
used in this calculation (net sales and cost of product sold exclusive of
depreciation and amortization) can be taken directly from our statement of
operations. Our calculation of refining margin may differ from
similar calculations of other companies in our industry, thereby limiting
its usefulness as a comparative
measure.
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(4)
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Plant
gate sales per ton represents net sales less freight and hydrogen revenue
divided by sales tons. Plant gate pricing per ton is shown in
order to provide industry
comparability.
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(5)
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On-stream
factor is the total number of hours operated divided by the total number
of hours in the reporting
period.
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