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, including zip code) |
CVR Energy, Inc. | |
By: | /s/ Susan M. Ball |
Susan M. Ball, | |
Chief Financial Officer and Treasurer |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||||
Net sales | $ | 1,010.6 | $ | 1,841.8 | $ | 5,432.5 | $ | 9,109.5 | |||||||
Cost of product sold | 847.9 | 1,733.4 | 4,190.4 | 8,066.0 | |||||||||||
Direct operating expenses | 212.1 | 134.7 | 584.7 | 515.1 | |||||||||||
Flood insurance recovery | — | — | (27.3 | ) | — | ||||||||||
Selling, general and administrative expenses | 20.4 | 23.5 | 99.0 | 109.7 | |||||||||||
Depreciation and amortization | 40.9 | 40.8 | 164.1 | 154.4 | |||||||||||
Operating income (loss) | (110.7 | ) | (90.6 | ) | 421.6 | 264.3 | |||||||||
Interest expense and other financing costs | (11.9 | ) | (11.2 | ) | (48.4 | ) | (40.0 | ) | |||||||
Interest income | 0.2 | 0.2 | 1.0 | 0.9 | |||||||||||
Gain (loss) on derivatives, net | 23.6 | 14.5 | (28.6 | ) | 185.6 | ||||||||||
Other income (expense), net | 0.2 | (3.6 | ) | 36.7 | (3.7 | ) | |||||||||
Income (loss) before income tax expense (benefit) | (98.6 | ) | (90.7 | ) | 382.3 | 407.1 | |||||||||
Income tax expense (benefit) | (20.7 | ) | (21.0 | ) | 84.5 | 97.7 | |||||||||
Net income (loss) | (77.9 | ) | (69.7 | ) | 297.8 | 309.4 | |||||||||
Less: Net income (loss) attributable to noncontrolling interest | (32.9 | ) | (25.3 | ) | 128.2 | 135.5 | |||||||||
Net income (loss) attributable to CVR Energy stockholders | $ | (45.0 | ) | $ | (44.4 | ) | $ | 169.6 | $ | 173.9 | |||||
Basic earnings (loss) per share | $ | (0.52 | ) | $ | (0.51 | ) | $ | 1.95 | $ | 2.00 | |||||
Diluted earnings (loss) per share | $ | (0.52 | ) | $ | (0.51 | ) | $ | 1.95 | $ | 2.00 | |||||
Dividends declared per share | $ | 0.50 | $ | 0.75 | $ | 2.00 | $ | 5.00 | |||||||
Adjusted EBITDA* | $ | 35.6 | $ | 81.7 | $ | 498.8 | $ | 473.5 | |||||||
Adjusted net income (loss)* | $ | (4.3 | ) | $ | 24.4 | $ | 235.1 | $ | 218.4 | ||||||
Adjusted net income (loss), per diluted share* | $ | (0.05 | ) | $ | 0.28 | $ | 2.71 | $ | 2.51 | ||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 86.8 | 86.8 | 86.8 | 86.8 | |||||||||||
Diluted | 86.8 | 86.8 | 86.8 | 86.8 |
As of December 31, 2015 | As of December 31, 2014 | ||||||
(in millions) | |||||||
Balance Sheet Data: | |||||||
Cash and cash equivalents | $ | 765.1 | $ | 753.7 | |||
Working capital | 789.9 | 1,033.0 | |||||
Total assets | 3,305.8 | 3,462.5 | |||||
Total debt, including current portion | 673.5 | 674.9 | |||||
Total CVR stockholders’ equity | 984.1 | 988.1 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: | |||||||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | (75.5 | ) | $ | 109.5 | $ | 536.8 | $ | 640.3 | ||||||
Investing activities | (76.8 | ) | (47.0 | ) | (150.6 | ) | (296.6 | ) | |||||||
Financing activities | (94.6 | ) | (101.9 | ) | (374.8 | ) | (432.1 | ) | |||||||
Net cash flow | $ | (246.9 | ) | $ | (39.4 | ) | $ | 11.4 | $ | (88.4 | ) |
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 product sold | 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 product sold | 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 |
Petroleum (CVR Refining) | Nitrogen Fertilizer (CVR Partners) | Corporate and Other | Consolidated | |||||||||||||
(in millions) | ||||||||||||||||
Three Months Ended December 31, 2014 | ||||||||||||||||
Net sales | $ | 1,772.8 | $ | 74.4 | $ | (5.4 | ) | $ | 1,841.8 | |||||||
Cost of product sold | 1,723.8 | 15.4 | (5.8 | ) | 1,733.4 | |||||||||||
Direct operating expenses(1) | 111.6 | 21.7 | 0.1 | 133.4 | ||||||||||||
Major scheduled turnaround expenses | 1.3 | — | — | 1.3 | ||||||||||||
Selling, general and administrative | 16.8 | 3.8 | 2.9 | 23.5 | ||||||||||||
Depreciation and amortization | 32.6 | 7.0 | 1.2 | 40.8 | ||||||||||||
Operating income (loss) | $ | (113.3 | ) | $ | 26.5 | $ | (3.8 | ) | $ | (90.6 | ) | |||||
Capital expenditures | $ | 37.1 | $ | 7.6 | $ | 2.3 | $ | 47.0 | ||||||||
Year Ended December 31, 2014 | ||||||||||||||||
Net sales | $ | 8,829.7 | $ | 298.7 | $ | (18.9 | ) | $ | 9,109.5 | |||||||
Cost of product sold | 8,013.4 | 72.0 | (19.4 | ) | 8,066.0 | |||||||||||
Direct operating expenses(1) | 409.2 | 98.9 | 0.2 | 508.3 | ||||||||||||
Major scheduled turnaround expenses | 6.8 | — | — | 6.8 | ||||||||||||
Selling, general and administrative | 70.6 | 17.7 | 21.4 | 109.7 | ||||||||||||
Depreciation and amortization | 122.5 | 27.3 | 4.6 | 154.4 | ||||||||||||
Operating income (loss) | $ | 207.2 | $ | 82.8 | $ | (25.7 | ) | $ | 264.3 | |||||||
Capital expenditures | $ | 191.3 | $ | 21.1 | $ | 6.0 | $ | 218.4 |
(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, 2015 | ||||||||||||||||
Cash and cash equivalents | $ | 187.3 | $ | 50.0 | $ | 527.8 | $ | 765.1 | ||||||||
Total assets | 2,195.2 | 536.5 | 574.1 | 3,305.8 | ||||||||||||
Total debt, including current portion | 580.0 | 125.0 | (31.5 | ) | 673.5 | |||||||||||
December 31, 2014 | ||||||||||||||||
Cash and cash equivalents | $ | 370.2 | $ | 79.9 | $ | 303.6 | $ | 753.7 | ||||||||
Total assets | 2,417.8 | 578.8 | 465.9 | 3,462.5 | ||||||||||||
Total debt, including current portion | 581.4 | 125.0 | (31.5 | ) | 674.9 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Petroleum Segment Summary Financial Results: | |||||||||||||||
Net sales | $ | 948.3 | $ | 1,772.8 | $ | 5,161.9 | $ | 8,829.7 | |||||||
Cost of product sold | 842.8 | 1,723.8 | 4,143.6 | 8,013.4 | |||||||||||
Direct operating expenses | 103.8 | 111.6 | 376.3 | 409.2 | |||||||||||
Major scheduled turnaround expenses | 84.9 | 1.3 | 102.2 | 6.8 | |||||||||||
Flood insurance recovery | — | — | (27.3 | ) | — | ||||||||||
Selling, general and administrative expenses | 20.2 | 16.8 | 75.2 | 70.6 | |||||||||||
Depreciation and amortization | 32.1 | 32.6 | 130.2 | 122.5 | |||||||||||
Operating income (loss) | (135.5 | ) | (113.3 | ) | 361.7 | 207.2 | |||||||||
Interest expense and other financing costs | (10.5 | ) | (9.7 | ) | (42.6 | ) | (34.2 | ) | |||||||
Interest income | 0.1 | 0.1 | 0.4 | 0.3 | |||||||||||
Gain (loss) on derivatives, net | 23.6 | 14.5 | (28.6 | ) | 185.6 | ||||||||||
Other income (expense), net | 0.1 | (0.1 | ) | 0.3 | (0.2 | ) | |||||||||
Income (loss) before income tax expense | (122.2 | ) | (108.5 | ) | 291.2 | 358.7 | |||||||||
Income tax expense | — | — | — | — | |||||||||||
Net income (loss) | $ | (122.2 | ) | $ | (108.5 | ) | $ | 291.2 | $ | 358.7 | |||||
Refining margin* | $ | 105.5 | $ | 49.0 | $ | 1,018.3 | $ | 816.3 | |||||||
Gross profit (loss)* | $ | (115.3 | ) | $ | (96.5 | ) | $ | 436.9 | $ | 277.8 | |||||
Refining margin adjusted for FIFO impact* | $ | 132.1 | $ | 203.6 | $ | 1,078.6 | $ | 977.1 | |||||||
Adjusted Petroleum EBITDA* | $ | 16.4 | $ | 104.6 | $ | 602.0 | $ | 621.6 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(dollars per barrel) | |||||||||||||||
Petroleum Segment Key Operating Statistics: | |||||||||||||||
Per crude oil throughput barrel: | |||||||||||||||
Refining margin* | $ | 7.16 | $ | 2.71 | $ | 14.45 | $ | 11.38 | |||||||
FIFO impact (favorable) unfavorable | 1.80 | 8.57 | 0.86 | 2.24 | |||||||||||
Refining margin adjusted for FIFO impact* | 8.96 | 11.28 | 15.31 | 13.62 | |||||||||||
Gross profit (loss)* | (7.82 | ) | (5.35 | ) | 6.20 | 3.87 | |||||||||
Gross profit (loss) excluding flood insurance recovery* | (7.82 | ) | (5.35 | ) | 5.81 | 3.87 | |||||||||
Direct operating expenses and major scheduled turnaround expenses | 12.81 | 6.26 | 6.79 | 5.80 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses | 7.04 | 6.19 | 5.34 | 5.70 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold | 12.34 | 5.76 | 6.40 | 5.44 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold | $ | 6.79 | $ | 5.69 | $ | 5.04 | $ | 5.35 | |||||||
Barrels sold (barrels per day) | 166,168 | 213,256 | 204,708 | 209,669 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Petroleum Segment Summary Refining Throughput and Production Data (bpd): | |||||||||||||||||||||||||||
Throughput: | |||||||||||||||||||||||||||
Sweet | 151,215 | 87.7 | % | 181,063 | 85.3 | % | 176,097 | 86.0 | % | 179,059 | 86.2 | % | |||||||||||||||
Medium | 209 | 0.1 | % | 3,383 | 1.6 | % | 2,460 | 1.2 | % | 2,022 | 1.0 | % | |||||||||||||||
Heavy sour | 8,715 | 5.1 | % | 11,700 | 5.5 | % | 14,520 | 7.1 | % | 15,464 | 7.4 | % | |||||||||||||||
Total crude oil throughput | 160,139 | 92.9 | % | 196,146 | 92.4 | % | 193,077 | 94.3 | % | 196,545 | 94.6 | % | |||||||||||||||
All other feedstocks and blendstocks | 12,225 | 7.1 | % | 16,117 | 7.6 | % | 11,672 | 5.7 | % | 11,284 | 5.4 | % | |||||||||||||||
Total throughput | 172,364 | 100.0 | % | 212,263 | 100.0 | % | 204,749 | 100.0 | % | 207,829 | 100.0 | % | |||||||||||||||
Production: | |||||||||||||||||||||||||||
Gasoline | 80,111 | 46.3 | % | 107,158 | 50.1 | % | 99,961 | 48.5 | % | 102,275 | 48.9 | % | |||||||||||||||
Distillate | 70,201 | 40.6 | % | 88,119 | 41.2 | % | 85,953 | 41.7 | % | 87,639 | 41.9 | % | |||||||||||||||
Other (excluding internally produced fuel) | 22,638 | 13.1 | % | 18,526 | 8.7 | % | 20,074 | 9.8 | % | 19,149 | 9.2 | % | |||||||||||||||
Total refining production (excluding internally produced fuel) | 172,950 | 100.0 | % | 213,803 | 100.0 | % | 205,988 | 100.0 | % | 209,063 | 100.0 | % | |||||||||||||||
Product price (dollars per gallon): | |||||||||||||||||||||||||||
Gasoline | $ | 1.32 | $ | 1.93 | $ | 1.61 | $ | 2.53 | |||||||||||||||||||
Distillate | 1.34 | 2.40 | 1.62 | 2.81 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Market Indicators (dollars per barrel): | |||||||||||||||
West Texas Intermediate (WTI) NYMEX | $ | 42.16 | $ | 73.20 | $ | 48.76 | $ | 92.91 | |||||||
Crude Oil Differentials: | |||||||||||||||
WTI less WTS (light/medium sour) | 0.35 | 2.19 | (0.28 | ) | 5.95 | ||||||||||
WTI less WCS (heavy sour) | 14.45 | 15.42 | 13.20 | 18.48 | |||||||||||
NYMEX Crack Spreads: | |||||||||||||||
Gasoline | 12.79 | 9.83 | 19.89 | 17.29 | |||||||||||
Heating Oil | 15.21 | 24.12 | 20.93 | 23.59 | |||||||||||
NYMEX 2-1-1 Crack Spread | 14.00 | 16.97 | 20.41 | 20.44 | |||||||||||
PADD II Group 3 Product Basis: | |||||||||||||||
Gasoline | 0.26 | (2.92 | ) | (2.12 | ) | (4.45 | ) | ||||||||
Ultra Low Sulfur Diesel | (0.44 | ) | 3.51 | (2.02 | ) | 0.75 | |||||||||
PADD II Group 3 Product Crack Spread: | |||||||||||||||
Gasoline | 13.05 | 6.91 | 17.76 | 12.84 | |||||||||||
Ultra Low Sulfur Diesel | 14.76 | 27.63 | 18.91 | 24.34 | |||||||||||
PADD II Group 3 2-1-1 | 13.91 | 17.27 | 18.34 | 18.59 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: | |||||||||||||||
Net sales | $ | 522.6 | $ | 1,214.2 | $ | 3,220.6 | $ | 5,755.5 | |||||||
Cost of product sold | 490.5 | 1,186.3 | 2,626.1 | 5,254.9 | |||||||||||
Refining margin* | 32.1 | 27.9 | 594.5 | 500.6 | |||||||||||
Direct operating expenses | 53.5 | 54.4 | 209.1 | 223.6 | |||||||||||
Major scheduled turnaround expenses | 84.9 | — | 102.2 | 5.5 | |||||||||||
Flood insurance recovery | — | — | (27.3 | ) | — | ||||||||||
Depreciation and amortization | 17.5 | 19.2 | 72.1 | 73.6 | |||||||||||
Gross profit (loss)* | $ | (123.8 | ) | $ | (45.7 | ) | $ | 238.4 | $ | 197.9 | |||||
Refining margin adjusted for FIFO impact* | $ | 49.5 | $ | 139.7 | $ | 632.5 | $ | 615.8 | |||||||
Coffeyville Refinery Key Operating Statistics: | |||||||||||||||
Per crude oil throughput barrel: | |||||||||||||||
Refining margin* | $ | 4.52 | $ | 2.39 | $ | 14.37 | $ | 11.46 | |||||||
FIFO impact (favorable) unfavorable | 2.45 | 9.58 | 0.92 | 2.64 | |||||||||||
Refining margin adjusted for FIFO impact* | 6.97 | 11.97 | 15.29 | 14.10 | |||||||||||
Gross profit (loss)* | (17.42 | ) | (3.91 | ) | 5.77 | 4.53 | |||||||||
Gross profit (loss) excluding flood insurance recovery* | (17.42 | ) | (3.91 | ) | 5.11 | 4.53 | |||||||||
Direct operating expenses and major scheduled turnaround expenses | 19.48 | 4.66 | 7.53 | 5.24 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses | 7.53 | 4.66 | 5.06 | 5.12 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold | 18.46 | 4.10 | 6.92 | 4.73 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold | $ | 7.14 | $ | 4.10 | $ | 4.65 | $ | 4.61 | |||||||
Barrels sold (barrels per day) | 81,484 | 144,151 | 123,279 | 132,791 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): | |||||||||||||||||||||||
Throughput: | |||||||||||||||||||||||
Sweet | 68,452 | 80.7 | % | 111,791 | 80.2 | % | 96,727 | 79.5 | % | 103,018 | 80.0 | % | |||||||||||
Medium | 57 | 0.1 | % | 3,383 | 2.4 | % | 2,058 | 1.7 | % | 1,222 | 1.0 | % | |||||||||||
Heavy sour | 8,715 | 10.3 | % | 11,700 | 8.4 | % | 14,520 | 11.9 | % | 15,464 | 12.0 | % | |||||||||||
Total crude oil throughput | 77,224 | 91.1 | % | 126,874 | 91.0 | % | 113,305 | 93.1 | % | 119,704 | 93.0 | % | |||||||||||
All other feedstocks and blendstocks | 7,540 | 8.9 | % | 12,510 | 9.0 | % | 8,400 | 6.9 | % | 9,047 | 7.0 | % | |||||||||||
Total throughput | 84,764 | 100.0 | % | 139,384 | 100.0 | % | 121,705 | 100.0 | % | 128,751 | 100.0 | % | |||||||||||
Production: | |||||||||||||||||||||||
Gasoline | 36,493 | 42.1 | % | 71,045 | 49.8 | % | 57,815 | 46.5 | % | 64,002 | 48.6 | % | |||||||||||
Distillate | 35,588 | 41.0 | % | 60,448 | 42.4 | % | 53,136 | 42.7 | % | 56,381 | 42.8 | % | |||||||||||
Other (excluding internally produced fuel) | 14,655 | 16.9 | % | 11,206 | 7.8 | % | 13,503 | 10.8 | % | 11,314 | 8.6 | % | |||||||||||
Total refining production (excluding internally produced fuel) | 86,736 | 100.0 | % | 142,699 | 100.0 | % | 124,454 | 100.0 | % | 131,697 | 100.0 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: | |||||||||||||||
Net sales | $ | 424.6 | $ | 557.5 | $ | 1,936.9 | $ | 3,069.8 | |||||||
Cost of product sold | 351.8 | 537.1 | 1,516.3 | 2,758.1 | |||||||||||
Refining margin* | 72.8 | 20.4 | 420.6 | 311.7 | |||||||||||
Direct operating expenses | 49.2 | 57.1 | 166.2 | 185.5 | |||||||||||
Major scheduled turnaround expenses | — | 1.3 | — | 1.3 | |||||||||||
Depreciation and amortization | 12.6 | 11.5 | 50.2 | 41.8 | |||||||||||
Gross profit (loss)* | $ | 11.0 | $ | (49.5 | ) | $ | 204.2 | $ | 83.1 | ||||||
Refining margin adjusted for FIFO impact* | $ | 82.0 | $ | 63.2 | $ | 442.9 | $ | 357.3 | |||||||
Wynnewood Refinery Key Operating Statistics: | |||||||||||||||
Per crude oil throughput barrel: | |||||||||||||||
Refining margin* | $ | 9.54 | $ | 3.20 | $ | 14.44 | $ | 11.11 | |||||||
FIFO impact (favorable) unfavorable | 1.20 | 6.72 | 0.77 | 1.63 | |||||||||||
Refining margin adjusted for FIFO impact* | 10.74 | 9.92 | 15.21 | 12.74 | |||||||||||
Gross profit (loss)* | 1.44 | (7.78 | ) | 7.01 | 2.96 | ||||||||||
Direct operating expenses and major scheduled turnaround expenses | 6.44 | 9.17 | 5.71 | 6.66 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses | 6.44 | 8.96 | 5.71 | 6.61 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold | 6.31 | 9.19 | 5.59 | 6.66 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold | $ | 6.31 | $ | 8.98 | $ | 5.59 | $ | 6.61 | |||||||
Barrels sold (barrels per day) | 84,684 | 69,105 | 81,429 | 76,878 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): | |||||||||||||||||||||||
Throughput: | |||||||||||||||||||||||
Sweet | 82,763 | 94.5 | % | 69,272 | 95.1 | % | 79,370 | 95.6 | % | 76,041 | 96.2 | % | |||||||||||
Medium | 152 | 0.2 | % | — | — | % | 402 | 0.5 | % | 800 | 1.0 | % | |||||||||||
Heavy sour | — | — | % | — | — | % | — | — | % | — | — | % | |||||||||||
Total crude oil throughput | 82,915 | 94.7 | % | 69,272 | 95.1 | % | 79,772 | 96.1 | % | 76,841 | 97.2 | % | |||||||||||
All other feedstocks and blendstocks | 4,685 | 5.3 | % | 3,607 | 4.9 | % | 3,272 | 3.9 | % | 2,237 | 2.8 | % | |||||||||||
Total throughput | 87,600 | 100.0 | % | 72,879 | 100.0 | % | 83,044 | 100.0 | % | 79,078 | 100.0 | % | |||||||||||
Production: | |||||||||||||||||||||||
Gasoline | 43,618 | 50.6 | % | 36,113 | 50.8 | % | 42,146 | 51.7 | % | 38,273 | 49.5 | % | |||||||||||
Distillate | 34,613 | 40.1 | % | 27,671 | 38.9 | % | 32,817 | 40.2 | % | 31,258 | 40.4 | % | |||||||||||
Other (excluding internally produced fuel) | 7,983 | 9.3 | % | 7,320 | 10.3 | % | 6,571 | 8.1 | % | 7,835 | 10.1 | % | |||||||||||
Total refining production (excluding internally produced fuel) | 86,214 | 100.0 | % | 71,104 | 100.0 | % | 81,534 | 100.0 | % | 77,366 | 100.0 | % |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Nitrogen Fertilizer Segment Business Financial Results: | |||||||||||||||
Net sales | $ | 66.0 | $ | 74.4 | $ | 289.2 | $ | 298.7 | |||||||
Cost of product sold | 9.5 | 15.4 | 65.2 | 72.0 | |||||||||||
Direct operating expenses | 23.3 | 21.7 | 99.1 | 98.9 | |||||||||||
Major scheduled turnaround expenses | — | — | 7.0 | — | |||||||||||
Selling, general and administrative expenses | 5.6 | 3.8 | 20.8 | 17.7 | |||||||||||
Depreciation and amortization | 7.2 | 7.0 | 28.4 | 27.3 | |||||||||||
Operating income | 20.4 | 26.5 | 68.7 | 82.8 | |||||||||||
Interest expense and other financing costs | (1.8 | ) | (1.7 | ) | (7.0 | ) | (6.7 | ) | |||||||
Other income, net | 0.1 | — | 0.3 | — | |||||||||||
Income before income tax expense | 18.7 | 24.8 | 62.0 | 76.1 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Net income | $ | 18.7 | $ | 24.8 | $ | 62.0 | $ | 76.1 | |||||||
Adjusted Nitrogen Fertilizer EBITDA* | $ | 28.5 | $ | 33.5 | $ | 106.8 | $ | 110.3 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Nitrogen Fertilizer Segment Key Operating Statistics: | |||||||||||||||
Production volume (thousand tons): | |||||||||||||||
Ammonia (gross produced)(1) | 116.1 | 105.9 | 385.4 | 388.9 | |||||||||||
Ammonia (net available for sale)(1)(2) | 6.1 | 4.4 | 37.3 | 28.3 | |||||||||||
UAN | 270.5 | 259.6 | 928.6 | 963.7 | |||||||||||
Pet coke consumed (thousand tons) | 134.1 | 130.0 | 469.9 | 489.7 | |||||||||||
Pet coke (cost per ton) | $ | 23 | $ | 27 | $ | 25 | $ | 28 | |||||||
Sales (thousand tons): | |||||||||||||||
Ammonia | 5.4 | 9.9 | 32.3 | 24.4 | |||||||||||
UAN | 240.7 | 236.8 | 939.5 | 951.0 | |||||||||||
Product pricing at gate (dollars per ton)(3): | |||||||||||||||
Ammonia | $ | 479 | $ | 547 | $ | 521 | $ | 518 | |||||||
UAN | $ | 221 | $ | 247 | $ | 247 | $ | 259 | |||||||
On-stream factor(4): | |||||||||||||||
Gasification | 99.3 | % | 99.6 | % | 90.2 | % | 96.8 | % | |||||||
Ammonia | 98.8 | % | 98.2 | % | 87.5 | % | 92.6 | % | |||||||
UAN | 98.3 | % | 95.8 | % | 87.3 | % | 92.0 | % | |||||||
Market Indicators: | |||||||||||||||
Ammonia — Southern Plains (dollars per ton) | $ | 460 | $ | 588 | $ | 510 | $ | 539 | |||||||
UAN — Corn belt (dollars per ton) | $ | 250 | $ | 293 | $ | 284 | $ | 314 |
(1) | Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into UAN. Net tons available for sale represent the ammonia available for sale that was not upgraded into UAN. |
(2) | In addition to the produced ammonia, the Nitrogen Fertilizer segment acquired approximately 0 and 3,900 tons of ammonia during the three months ended December 31, 2015 and 2014, respectively. The Nitrogen Fertilizer segment acquired approximately 29,300 and 33,600 tons of ammonia during the years ended December 31, 2015 and 2014, respectively. |
(3) | Product pricing at gate represents net sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry. |
(4) | On-stream factor is the total number of hours operated divided by the total number of hours in the reporting period and is a measure of operating efficiency. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss): | |||||||||||||||
Income (loss) before income tax expense (benefit) | $ | (98.6 | ) | $ | (90.7 | ) | $ | 382.3 | $ | 407.1 | |||||
Adjustments: | |||||||||||||||
FIFO impact (favorable) unfavorable | 26.6 | 154.6 | 60.3 | 160.8 | |||||||||||
Share-based compensation | 3.7 | 1.5 | 12.8 | 12.3 | |||||||||||
Major scheduled turnaround expenses | 84.9 | 1.3 | 109.2 | 6.8 | |||||||||||
(Gain) loss on derivatives, net | (23.6 | ) | (14.5 | ) | 28.6 | (185.6 | ) | ||||||||
Current period settlement on derivative contracts(1) | 8.1 | 29.0 | (26.0 | ) | 122.2 | ||||||||||
Flood insurance recovery(2) | — | — | (27.3 | ) | — | ||||||||||
Expenses associated with the Rentech Nitrogen mergers(3) | 0.8 | — | 2.3 | — | |||||||||||
Adjusted net income before income tax expense and noncontrolling interest | 1.9 | 81.2 | 542.2 | 523.6 | |||||||||||
Adjusted net income attributed to noncontrolling interest | (0.3 | ) | (32.8 | ) | (179.8 | ) | (178.4 | ) | |||||||
Income tax expense, as adjusted | (5.9 | ) | (24.0 | ) | (127.3 | ) | (126.8 | ) | |||||||
Adjusted net income (loss) attributable to CVR Energy stockholders | $ | (4.3 | ) | $ | 24.4 | $ | 235.1 | $ | 218.4 | ||||||
Adjusted net income (loss) per diluted share | $ | (0.05 | ) | $ | 0.28 | $ | 2.71 | $ | 2.51 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Net income (loss) attributable to CVR Energy stockholders | $ | (45.0 | ) | $ | (44.4 | ) | $ | 169.6 | $ | 173.9 | |||||
Add: | |||||||||||||||
Interest expense and other financing costs, net of interest income | 11.7 | 11.0 | 47.4 | 39.1 | |||||||||||
Income tax expense (benefit) | (20.7 | ) | (21.0 | ) | 84.5 | 97.7 | |||||||||
Depreciation and amortization | 40.9 | 40.8 | 164.1 | 154.4 | |||||||||||
EBITDA adjustments included in noncontrolling interest | (18.7 | ) | (18.4 | ) | (75.2 | ) | (65.2 | ) | |||||||
EBITDA | (31.8 | ) | (32.0 | ) | 390.4 | 399.9 | |||||||||
Add: | |||||||||||||||
FIFO impact (favorable) unfavorable | 26.6 | 154.6 | 60.3 | 160.8 | |||||||||||
Share-based compensation | 3.7 | 1.5 | 12.8 | 12.3 | |||||||||||
Major scheduled turnaround expenses | 84.9 | 1.3 | 109.2 | 6.8 | |||||||||||
(Gain) loss on derivatives, net | (23.6 | ) | (14.5 | ) | 28.6 | (185.6 | ) | ||||||||
Current period settlement on derivative contracts(1) | 8.1 | 29.0 | (26.0 | ) | 122.2 | ||||||||||
Flood insurance recovery(2) | — | — | (27.3 | ) | — | ||||||||||
Expenses associated with the Rentech Nitrogen mergers(3) | 0.8 | — | 2.3 | — | |||||||||||
Adjustments included in noncontrolling interest | (33.1 | ) | (58.2 | ) | (51.5 | ) | (42.9 | ) | |||||||
Adjusted EBITDA | $ | 35.6 | $ | 81.7 | $ | 498.8 | $ | 473.5 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Petroleum: | |||||||||||||||
Petroleum net income (loss) | $ | (122.2 | ) | $ | (108.5 | ) | $ | 291.2 | $ | 358.7 | |||||
Add: | |||||||||||||||
Interest expense and other financing costs, net of interest income | 10.4 | 9.6 | 42.2 | 33.9 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Depreciation and amortization | 32.1 | 32.6 | 130.2 | 122.5 | |||||||||||
Petroleum EBITDA | (79.7 | ) | (66.3 | ) | 463.6 | 515.1 | |||||||||
Add: | |||||||||||||||
FIFO impact (favorable) unfavorable | 26.6 | 154.6 | 60.3 | 160.8 | |||||||||||
Share-based compensation, non-cash | 0.1 | 0.5 | 0.6 | 2.3 | |||||||||||
Major scheduled turnaround expenses | 84.9 | 1.3 | 102.2 | 6.8 | |||||||||||
(Gain) loss on derivatives, net | (23.6 | ) | (14.5 | ) | 28.6 | (185.6 | ) | ||||||||
Current period settlements on derivative contracts(1) | 8.1 | 29.0 | (26.0 | ) | 122.2 | ||||||||||
Flood insurance recovery(2) | — | — | (27.3 | ) | — | ||||||||||
Adjusted Petroleum EBITDA | $ | 16.4 | $ | 104.6 | $ | 602.0 | $ | 621.6 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Nitrogen Fertilizer: | |||||||||||||||
Nitrogen Fertilizer net income | $ | 18.7 | $ | 24.8 | $ | 62.0 | $ | 76.1 | |||||||
Add: | |||||||||||||||
Interest expense and other financing costs, net | 1.8 | 1.7 | 7.0 | 6.7 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Depreciation and amortization | 7.2 | 7.0 | 28.4 | 27.3 | |||||||||||
Nitrogen Fertilizer EBITDA | 27.7 | 33.5 | 97.4 | 110.1 | |||||||||||
Add: | |||||||||||||||
Share-based compensation, non-cash | — | — | 0.1 | 0.2 | |||||||||||
Major scheduled turnaround expenses | — | — | 7.0 | — | |||||||||||
Expenses associated with the Rentech Nitrogen mergers(3) | 0.8 | — | 2.3 | — | |||||||||||
Adjusted Nitrogen Fertilizer EBITDA | $ | 28.5 | $ | 33.5 | $ | 106.8 | $ | 110.3 |
(1) | Represents the portion of gain (loss) on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
(2) | Represents an insurance recovery from CRRM’s environmental insurance carriers as a result of the flood and crude oil discharge at the Coffeyville refinery on June/July 2007. |
(3) | On August 9, 2015, CVR Partners entered into an Agreement and Plan of Merger with Rentech Nitrogen Partners, L.P. (“Rentech Nitrogen”) and Rentech Nitrogen GP, LLC (“Rentech Nitrogen GP”) with Rentech Nitrogen and Rentech Nitrogen GP continuing as surviving entities and wholly-owned subsidiaries of CVR Partners. The Nitrogen Fertilizer Partnership incurred legal and other professional fees and other merger related expenses that are referred to herein as expenses associated with the Rentech Nitrogen mergers, which are included in selling, general and administrative expenses for the three months and year ended December 31, 2015. |
Commodity Swaps | Barrels | Fixed Price(1) | |||||
First Quarter 2016 | 615,000 | $ | 29.01 | ||||
Second Quarter 2016 | 615,000 | 29.01 | |||||
Third Quarter 2016 | 615,000 | 29.01 | |||||
Fourth Quarter 2016 | 615,000 | 29.01 | |||||
Total | 2,460,000 | $ | 29.01 |
(1) | Weighted-average price of all positions for period indicated. |