SUGAR LAND, Texas, Oct. 27, 2016 /PRNewswire/ -- CVR Energy, Inc.
(NYSE: CVI) today announced third quarter 2016 net income of
$5.4 million, or 6 cents per diluted share, on net sales of
$1,240.3 million, compared to net
income of $57.9 million, or
67 cents per diluted share, on net
sales of $1,408.8 million for the
2015 third quarter. Third quarter 2016 adjusted EBITDA, a non-GAAP
financial measure, was $58.2 million,
compared to third quarter 2015 adjusted EBITDA of $153.8 million.
For the first nine months of 2016, net income was $17.6 million, or 20
cents per diluted share, on net sales of $3,429.0 million, compared to net income of
$214.6 million, or $2.47 per diluted share, on net sales of
$4,421.9 million for the same period
a year earlier. Adjusted EBITDA for the first nine months of 2016
was $158.8 million, compared to
adjusted EBITDA of $463.2 million for
the first nine months of 2015.
"CVR Partners posted high on-stream rates at its Coffeyville, Kansas, and East Dubuque, Illinois, fertilizer plants
during the third quarter," said Jack
Lipinski, CVR Energy's chief executive officer. "CVR
Refining's Coffeyville refinery
also ran well during the quarter, and the company executed a
definitive agreement with Velocity Midstream Partners for the
construction of a crude oil pipeline that will directly link the
fairway of the South Central Oklahoma Oil Province (SCOOP) to its
Wynnewood, Oklahoma, refinery.
"As I mentioned in the CVR Refining third quarter news release,
the exorbitant costs of Renewable Identification Numbers (RINs)
under the broken Renewable Fuel Standard (RFS) program continue to
negatively impact our overall financial results," Lipinski said.
"The Environmental Protection Agency (EPA) must change the point of
obligation and pull back on its proposed 2017 Renewable Volume
Obligations (RVOs) before escalating RIN prices cause irreparable
harm to merchant refiners. The EPA is now in the process of
literally destroying small and medium-sized merchant refineries
like ours that do not control the blending and retail sale of their
fuel.
"It is absurd that the EPA continues to punish and ruin merchant
refineries that have done nothing wrong when the EPA itself admits
that the RFS program is not working," he continued. "The primary
beneficiaries of the broken RFS program are 'Big Oil,' large retail
chains and the Wall Street speculators that are manipulating the
RINs' market for illicit gain, causing the compliance costs of
merchant refineries to skyrocket - all with the EPA's imprimatur.
Even the EPA's own former Chief of Criminal Investigations,
Doug Parker, recently stated
publicly that 'structural vulnerabilities in the regulations,
limited agency oversight, and a lack of market transparency within
the RFS made this program a ripe target for massive fraud and
illicit gain.'
"The EPA now has the opportunity to avert another 2008-style
financial crisis, but only if it takes resolute and immediate
action," Lipinski added. "If regulatory oversight of the 'wild
west' RINs' market, as well as an investigation of the criminal
activities identified by Doug
Parker, are not brought to bear, a number of small and
medium-sized refineries will be driven into bankruptcy, which will
do for 'Big Oil' what the Federal Trade Commission would never
allow them to do for themselves - destroy all of their competitors
in the refining business. This will allow them to strengthen
oligopolies that will control the supply of gasoline, giving them
the ability to cause prices to spike and squeeze consumers at will,
which will start a domino effect, crippling the transportation
industry and causing many businesses to suffer and even fail.
"We therefore implore the EPA, before it is too late and its
rule becomes final on Nov. 30, to
take decisive action - by drastically lowering the proposed RVOs
for 2017," he said. "It is important to note that the volumes of
ethanol and biofuels that the EPA has indicated it will require
refineries to blend in 2017 are mathematically impossible to
achieve. Therefore, the demands being made on merchant refineries
will be impossible for them to achieve. This has become an 'Alice
in Wonderland' situation - but it is not funny because of the dire
consequences that it will soon manifest.
"We invite everyone to visit our new online resource,
www.FixTheRFS.org, to learn more about these important issues, our
position and how the EPA can fix this broken program," Lipinski
concluded.
CVR Energy also announced a third quarter 2016 cash dividend of
50 cents per share. The dividend, as
declared by CVR Energy's Board of Directors, will be paid on
Nov. 14, 2016, to stockholders of
record on Nov. 7, 2016.
CVR Energy's third quarter cash dividend brings the cumulative
cash dividends paid or declared for the first nine months of 2016
to $1.50 per share.
Today, CVR Partners and CVR Refining announced that the
partnerships will not pay a cash distribution for the 2016 third
quarter.
Petroleum Business
The petroleum business, which is operated by CVR Refining and
includes the Coffeyville and
Wynnewood refineries, reported
third quarter 2016 operating income of $28.4
million on net sales of $1,163.5
million, compared to operating income of $137.2 million on net sales of $1,361.6 million in the third quarter of
2015.
Refining margin adjusted for FIFO impact per crude oil
throughput barrel, a non-GAAP financial measure, was $10.09 in the 2016 third quarter, compared to
$18.65 during the same period in
2015. Direct operating expenses (exclusive of depreciation and
amortization), excluding major scheduled turnaround expenses, per
crude oil throughput barrel, for the 2016 third quarter were
$5.33, compared to $5.27 in the third quarter of 2015.
Third quarter 2016 throughputs of crude oil and all other
feedstocks and blendstocks totaled 206,733 barrels per day (bpd),
compared to third quarter 2015 throughputs of crude oil and all
other feedstocks and blendstocks of 210,917 bpd.
Nitrogen Fertilizers Business
The fertilizer business, which is operated by CVR Partners and
includes the Coffeyville and
East Dubuque fertilizer
facilities, reported third quarter 2016 operating income of
$2.4 million on net sales of
$78.5 million, compared to an
operating loss of $11.8 million on
net sales of $49.3 million for the
third quarter of 2015.
For the third quarter of 2016, consolidated average realized
gate prices for UAN and ammonia were $154 per ton and $345 per ton, respectively. Average realized gate
prices for UAN and ammonia for the Coffeyville plant were $227 per ton and $478 per ton, respectively, for the same period
in 2015.
In the 2016 third quarter, CVR Partners' fertilizer facilities
produced a combined 200,800 tons of ammonia, of which 60,300 net
tons were available for sale while the rest was upgraded to other
fertilizer products, including 317,200 tons of UAN. In the 2015
third quarter, the Coffeyville
plant produced 66,300 tons of ammonia and purchased an additional
7,500 tons of ammonia, of which 12,100 net tons were available for
sale while the remainder was upgraded to 152,400 tons of UAN.
Cash and Debt
Consolidated cash and cash equivalents, which included
$285.9 million for CVR Refining and
$65.3 million for CVR Partners, was
$762.6 million at Sept. 30, 2016. Consolidated total debt was
$1,166.3 million at Sept. 30, 2016. The company had no debt exclusive
of CVR Refining's and CVR Partners' debt.
Third Quarter 2016 Earnings Conference Call
CVR Energy previously announced that it will host its third
quarter 2016 Earnings Conference Call for analysts and investors on
Thursday, Oct. 27, at 3 p.m. Eastern. The Earnings Conference Call may
also include discussion of company developments, forward-looking
information and other material information about business and
financial matters.
The Earnings Conference Call will be broadcast live over the
Internet at https://www.webcaster4.com/Webcast/Page/1003/17701. For
investors or analysts who want to participate during the call, the
dial-in number is (877) 407-8291.
For those unable to listen live, the Webcast will be archived
and available for 14 days at
https://www.webcaster4.com/Webcast/Page/1003/17701. A repeat of the
conference call can be accessed by dialing (877) 660-6853,
conference ID 13647403.
Forward-Looking Statements
This news release may
contain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended. You can generally identify forward-looking statements
by our use of forward-looking terminology such as "anticipate,"
"believe," "continue," "could," "estimate," "expect," "explore,"
"evaluate," "intend," "may," "might," "plan," "potential,"
"predict," "seek," "should," or "will," or the negative thereof or
other variations thereon or comparable terminology. These
forward-looking statements are only predictions and involve known
and unknown risks and uncertainties, many of which are beyond our
control. For a discussion of risk factors which may affect our
results, please see the risk factors and other disclosures included
in our most recent Annual Report on Form 10-K, any
subsequently filed Quarterly Reports on Form 10-Q and our
other SEC filings. These risks may cause our actual results,
performance or achievements to differ materially from any future
results, performance or achievements expressed or implied by these
forward-looking statements. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking
statements included in this press release are made only as of the
date hereof. CVR Energy disclaims any intention or obligation
to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except to the extent required by law.
About CVR Energy, Inc.
Headquartered in Sugar Land, Texas, CVR Energy is a diversified
holding company primarily engaged in the petroleum refining and
nitrogen fertilizer manufacturing industries through its holdings
in two limited partnerships, CVR Refining, LP and CVR Partners, LP.
CVR Energy subsidiaries serve as the general partner and own 66
percent of the common units of CVR Refining and 34 percent of the
common units of CVR Partners.
For further information, please contact:
Investor Contact:
Jay
Finks
CVR Energy, Inc.
(281) 207-3588
InvestorRelations@CVREnergy.com
Media Relations:
Angie
Dasbach
CVR Energy, Inc.
(281) 207-3550
MediaRelations@CVREnergy.com
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CVR Energy,
Inc.
|
|
|
Financial and
Operations Data (all information in this release is unaudited
unless noted otherwise).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
Consolidated
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,240.3
|
|
|
$
|
1,408.8
|
|
|
$
|
3,429.0
|
|
|
$
|
4,421.9
|
|
|
Cost of product
sold
|
1,005.7
|
|
|
1,076.7
|
|
|
2,719.3
|
|
|
3,342.5
|
|
|
Direct operating
expenses
|
129.5
|
|
|
145.8
|
|
|
409.2
|
|
|
372.7
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Selling, general and
administrative expenses
|
27.8
|
|
|
26.1
|
|
|
81.7
|
|
|
78.5
|
|
|
Depreciation and
amortization
|
50.1
|
|
|
38.7
|
|
|
140.8
|
|
|
123.2
|
|
|
Operating
income
|
27.2
|
|
|
121.5
|
|
|
78.0
|
|
|
532.3
|
|
|
Interest expense and
other financing costs
|
(26.2)
|
|
|
(11.9)
|
|
|
(56.8)
|
|
|
(36.5)
|
|
|
Interest
income
|
0.2
|
|
|
0.3
|
|
|
0.5
|
|
|
0.7
|
|
|
Gain (loss) on
derivatives, net
|
(1.7)
|
|
|
11.8
|
|
|
(4.8)
|
|
|
(52.2)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(5.1)
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|
|
—
|
|
|
Other income,
net
|
5.0
|
|
|
0.3
|
|
|
5.5
|
|
|
36.6
|
|
|
Income before income
tax expense
|
4.5
|
|
|
122.0
|
|
|
17.3
|
|
|
480.9
|
|
|
Income tax
expense
|
2.5
|
|
|
23.1
|
|
|
2.3
|
|
|
105.2
|
|
|
Net income
|
2.0
|
|
|
98.9
|
|
|
15.0
|
|
|
375.7
|
|
|
Less: Net income
(loss) attributable to noncontrolling interest
|
(3.4)
|
|
|
41.0
|
|
|
(2.6)
|
|
|
161.1
|
|
|
Net income
attributable to CVR Energy stockholders
|
$
|
5.4
|
|
|
$
|
57.9
|
|
|
$
|
17.6
|
|
|
$
|
214.6
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
earnings per share
|
$
|
0.06
|
|
|
$
|
0.67
|
|
|
$
|
0.20
|
|
|
$
|
2.47
|
|
|
Dividends declared
per share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
1.50
|
|
|
$
|
1.50
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA*
|
$
|
58.2
|
|
|
$
|
153.8
|
|
|
$
|
158.8
|
|
|
$
|
463.2
|
|
|
Adjusted net
income*
|
$
|
11.5
|
|
|
$
|
82.4
|
|
|
$
|
37.0
|
|
|
$
|
239.4
|
|
|
Adjusted net income
per diluted share*
|
$
|
0.13
|
|
|
$
|
0.95
|
|
|
$
|
0.43
|
|
|
$
|
2.76
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding - basic and diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
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|
|
|
|
|
|
|
|
|
As of
September
30, 2016
|
|
As of December
31, 2015
|
|
|
|
(audited)
|
|
(in
millions)
|
|
Balance Sheet
Data:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
762.6
|
|
|
$
|
765.1
|
|
|
Working capital
(1)
|
842.6
|
|
|
789.0
|
|
|
Total assets
(1)
|
4,055.0
|
|
|
3,299.4
|
|
|
Total debt, including
current portion (1)
|
1,166.3
|
|
|
667.1
|
|
|
Total CVR
stockholders' equity
|
894.4
|
|
|
984.1
|
|
|
|
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(1)
|
Prior period amounts
have been retrospectively adjusted for Accounting Standard Update
No. 2015-03, which requires that costs incurred to issue debt be
presented in the balance sheet as a direct reduction from the
carrying value of the debt.
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Cash Flow
Data:
|
|
|
|
|
|
|
|
|
Net cash flow
provided by (used in):
|
|
|
|
|
|
|
|
|
Operating
activities
|
$
|
149.0
|
|
|
$
|
235.9
|
|
|
$
|
218.9
|
|
|
$
|
612.3
|
|
|
Investing
activities
|
(16.9)
|
|
|
(55.1)
|
|
|
(172.0)
|
|
|
(73.8)
|
|
|
Financing
activities
|
(60.1)
|
|
|
(106.5)
|
|
|
(49.4)
|
|
|
(280.2)
|
|
|
Net cash
flow
|
$
|
72.0
|
|
|
$
|
74.3
|
|
|
$
|
(2.5)
|
|
|
$
|
258.3
|
|
Segment Information
Our operations are organized into two reportable segments,
Petroleum and Nitrogen Fertilizer. Our operations that are not
included in the Petroleum and Nitrogen Fertilizer segments are
included in the Corporate and Other segment (along with elimination
of intersegment transactions). The Petroleum segment is operated by
CVR Refining, LP ("CVR Refining"), in which we own a majority
interest as well as the general partner. The Petroleum segment
includes the operations of the Coffeyville, Kansas and Wynnewood, Oklahoma refineries along with the
crude oil gathering and pipeline systems. Detailed operating
results for the Petroleum segment for the quarter and nine months
ended September 30, 2016 are included in CVR Refining's press
release dated October 27, 2016. The Nitrogen Fertilizer
segment is operated by CVR Partners, LP, ("CVR Partners") in which
we own approximately 34% of the common units as of
September 30, 2016 and serve as the general partner. On
April 1, 2016, CVR Partners completed
the previously announced transactions (the "East Dubuque Merger")
contemplated by the Agreement and Plan of Merger, dated as of
August 9, 2015, whereby CVR Partners
acquired CVR Nitrogen, LP (formerly known as East Dubuque Nitrogen
Partners, L.P. and also formerly known as Rentech Nitrogen Partners
L.P.) and CVR Nitrogen GP, LLC (formerly known as East Dubuque
Nitrogen GP, LLC and also formerly known as Rentech Nitrogen GP,
LLC). The Nitrogen Fertilizer segment consists of a nitrogen
fertilizer manufacturing facility located in Coffeyville, Kansas, and as of April 1, 2016, a nitrogen fertilizer
manufacturing facility located in East
Dubuque, Illinois. Detailed operating results for the
Nitrogen Fertilizer segment for the quarter and nine months ended
September 30, 2016 are included in CVR Partners' press release
dated October 27, 2016.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
|
Three Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,163.5
|
|
|
$
|
78.5
|
|
|
$
|
(1.7)
|
|
|
$
|
1,240.3
|
|
|
Cost of product
sold
|
987.5
|
|
|
19.9
|
|
|
(1.7)
|
|
|
1,005.7
|
|
|
Direct operating
expenses (1)
|
97.0
|
|
|
32.5
|
|
|
—
|
|
|
129.5
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
18.1
|
|
|
7.3
|
|
|
2.4
|
|
|
27.8
|
|
|
Depreciation and
amortization
|
32.5
|
|
|
16.4
|
|
|
1.2
|
|
|
50.1
|
|
|
Operating income
(loss)
|
$
|
28.4
|
|
|
$
|
2.4
|
|
|
$
|
(3.6)
|
|
|
$
|
27.2
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
15.4
|
|
|
$
|
6.4
|
|
|
$
|
1.0
|
|
|
$
|
22.8
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
3,161.9
|
|
|
$
|
271.4
|
|
|
$
|
(4.3)
|
|
|
$
|
3,429.0
|
|
|
Cost of product
sold
|
2,651.7
|
|
|
72.2
|
|
|
(4.6)
|
|
|
2,719.3
|
|
|
Direct operating
expenses (1)
|
267.2
|
|
|
103.8
|
|
|
0.1
|
|
|
371.1
|
|
|
Major scheduled
turnaround expenses
|
31.5
|
|
|
6.6
|
|
|
—
|
|
|
38.1
|
|
|
Selling, general and
administrative
|
53.4
|
|
|
22.0
|
|
|
6.3
|
|
|
81.7
|
|
|
Depreciation and
amortization
|
95.6
|
|
|
41.0
|
|
|
4.2
|
|
|
140.8
|
|
|
Operating income
(loss)
|
$
|
62.5
|
|
|
$
|
25.8
|
|
|
$
|
(10.3)
|
|
|
$
|
78.0
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
83.4
|
|
|
$
|
18.3
|
|
|
$
|
3.9
|
|
|
$
|
105.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,361.6
|
|
|
$
|
49.3
|
|
|
$
|
(2.1)
|
|
|
$
|
1,408.8
|
|
|
Cost of product
sold
|
1,063.7
|
|
|
14.5
|
|
|
(1.5)
|
|
|
1,076.7
|
|
|
Direct operating
expenses (1)
|
97.0
|
|
|
26.6
|
|
|
—
|
|
|
123.6
|
|
|
Major scheduled
turnaround expenses
|
15.6
|
|
|
6.6
|
|
|
—
|
|
|
22.2
|
|
|
Flood insurance
recovery (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Selling, general and
administrative
|
18.2
|
|
|
6.0
|
|
|
1.9
|
|
|
26.1
|
|
|
Depreciation and
amortization
|
29.9
|
|
|
7.4
|
|
|
1.4
|
|
|
38.7
|
|
|
Operating income
(loss)
|
$
|
137.2
|
|
|
$
|
(11.8)
|
|
|
$
|
(3.9)
|
|
|
$
|
121.5
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
45.5
|
|
|
$
|
6.4
|
|
|
$
|
3.3
|
|
|
$
|
55.2
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
4,213.6
|
|
|
$
|
223.2
|
|
|
$
|
(14.9)
|
|
|
$
|
4,421.9
|
|
|
Cost of product
sold
|
3,300.8
|
|
|
55.7
|
|
|
(14.0)
|
|
|
3,342.5
|
|
|
Direct operating
expenses (1)
|
272.7
|
|
|
75.7
|
|
|
0.1
|
|
|
348.5
|
|
|
Major scheduled
turnaround expenses
|
17.2
|
|
|
7.0
|
|
|
—
|
|
|
24.2
|
|
|
Flood insurance
recovery (2)
|
(27.3)
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Selling, general and
administrative
|
54.9
|
|
|
15.2
|
|
|
8.4
|
|
|
78.5
|
|
|
Depreciation and
amortization
|
98.1
|
|
|
21.2
|
|
|
3.9
|
|
|
123.2
|
|
|
Operating income
(loss)
|
$
|
497.2
|
|
|
$
|
48.4
|
|
|
$
|
(13.3)
|
|
|
$
|
532.3
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
$
|
123.6
|
|
|
$
|
12.4
|
|
|
$
|
5.9
|
|
|
$
|
141.9
|
|
|
|
|
(1)
|
Excluding turnaround
expenses.
|
|
|
|
(2)
|
Represents an
insurance recovery from Coffeyville Resources Refining and
Marketing, LLC's ("CRRM") environmental insurance carriers as a
result of the flood and crude oil discharge at the Coffeyville
refinery on June/July 2007.
|
|
|
Petroleum
(CVR
Refining)
|
|
Nitrogen
Fertilizer
(CVR
Partners)
|
|
Corporate and
Other
|
|
Consolidated
|
|
(in
millions)
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
285.9
|
|
|
$
|
65.3
|
|
|
$
|
411.4
|
|
|
$
|
762.6
|
|
|
Total
assets
|
2,277.3
|
|
|
1,326.9
|
|
|
450.8
|
|
|
4,055.0
|
|
|
Total debt, including
current portion
|
573.3
|
|
|
624.5
|
|
|
(31.5)
|
|
|
1,166.3
|
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
187.3
|
|
|
$
|
50.0
|
|
|
$
|
527.8
|
|
|
$
|
765.1
|
|
|
Total assets
(1)
|
2,189.0
|
|
|
536.3
|
|
|
574.1
|
|
|
3,299.4
|
|
|
Total debt, including
current portion (1)
|
573.8
|
|
|
124.8
|
|
|
(31.5)
|
|
|
667.1
|
|
|
|
|
(1)
|
Prior period amounts
have been retrospectively adjusted for Accounting Standard Update
No. 2015-03, which requires that costs incurred to issue debt be
presented in the balance sheet as a direct reduction from the
carrying value of the debt.
|
Petroleum Segment Operating Data
The following tables set forth information about our
consolidated Petroleum segment operated by CVR Refining, of which
we own a majority interest and serve as the general partner, and
the Coffeyville and Wynnewood refineries. Reconciliations of
certain non-GAAP financial measures are provided under "Use of
Non-GAAP Financial Measures" below. Additional discussion of
operating results for the Petroleum segment for the quarter and
nine months ended September 30, 2016 are included in CVR
Refining's press release dated October 27, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Petroleum Segment
Summary Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,163.5
|
|
|
$
|
1,361.6
|
|
|
$
|
3,161.9
|
|
|
$
|
4,213.6
|
|
|
Cost of product
sold
|
987.5
|
|
|
1,063.7
|
|
|
2,651.7
|
|
|
3,300.8
|
|
|
Direct operating
expenses
|
97.0
|
|
|
97.0
|
|
|
267.2
|
|
|
272.7
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
15.6
|
|
|
31.5
|
|
|
17.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Selling, general and
administrative expenses
|
18.1
|
|
|
18.2
|
|
|
53.4
|
|
|
54.9
|
|
|
Depreciation and
amortization
|
32.5
|
|
|
29.9
|
|
|
95.6
|
|
|
98.1
|
|
|
Operating
income
|
28.4
|
|
|
137.2
|
|
|
62.5
|
|
|
497.2
|
|
|
Interest expense and
other financing costs
|
(10.8)
|
|
|
(10.4)
|
|
|
(31.7)
|
|
|
(32.2)
|
|
|
Interest
income
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
|
Gain (loss) on
derivatives, net
|
(1.7)
|
|
|
11.8
|
|
|
(4.8)
|
|
|
(52.2)
|
|
|
Other income,
net
|
—
|
|
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
Income before income
tax expense
|
15.9
|
|
|
138.9
|
|
|
26.0
|
|
|
413.4
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
$
|
15.9
|
|
|
$
|
138.9
|
|
|
$
|
26.0
|
|
|
$
|
413.4
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
$
|
46.5
|
|
|
$
|
155.4
|
|
|
$
|
115.9
|
|
|
$
|
552.1
|
|
|
Refining
margin*
|
$
|
176.0
|
|
|
$
|
297.9
|
|
|
$
|
510.2
|
|
|
$
|
912.8
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
183.7
|
|
|
$
|
343.5
|
|
|
$
|
480.5
|
|
|
$
|
946.5
|
|
|
Adjusted Petroleum
EBITDA*
|
$
|
75.3
|
|
|
$
|
229.6
|
|
|
$
|
195.1
|
|
|
$
|
585.6
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(dollars per
barrel)
|
|
Petroleum Segment
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
9.66
|
|
|
$
|
16.17
|
|
|
$
|
9.55
|
|
|
$
|
16.38
|
|
|
FIFO impact,
(favorable) unfavorable
|
0.43
|
|
|
2.48
|
|
|
(0.56)
|
|
|
0.60
|
|
|
Refining margin
adjusted for FIFO impact*
|
10.09
|
|
|
18.65
|
|
|
8.99
|
|
|
16.98
|
|
|
Gross
profit
|
2.55
|
|
|
8.44
|
|
|
2.17
|
|
|
9.91
|
|
|
Gross profit
excluding flood insurance recovery*
|
2.55
|
|
|
8.44
|
|
|
2.17
|
|
|
9.42
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
5.33
|
|
|
6.11
|
|
|
5.59
|
|
|
5.20
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
5.33
|
|
|
5.27
|
|
|
5.00
|
|
|
4.89
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
5.04
|
|
|
5.79
|
|
|
5.24
|
|
|
4.88
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
5.04
|
|
|
$
|
4.99
|
|
|
$
|
4.68
|
|
|
$
|
4.59
|
|
|
Barrels sold (barrels
per day)
|
209,228
|
|
|
211,440
|
|
|
208,192
|
|
|
217,696
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
Petroleum Segment
Summary
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Refining
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
176,404
|
|
|
85.3
|
%
|
|
185,228
|
|
|
87.8
|
%
|
|
174,594
|
|
|
85.4
|
%
|
|
184,481
|
|
|
85.5
|
%
|
|
Medium
|
1,983
|
|
|
1.0
|
%
|
|
2,037
|
|
|
1.0
|
%
|
|
2,321
|
|
|
1.1
|
%
|
|
3,220
|
|
|
1.5
|
%
|
|
Heavy sour
|
19,568
|
|
|
9.5
|
%
|
|
12,891
|
|
|
6.1
|
%
|
|
17,978
|
|
|
8.9
|
%
|
|
16,476
|
|
|
7.7
|
%
|
|
Total crude oil
throughput
|
197,955
|
|
|
95.8
|
%
|
|
200,156
|
|
|
94.9
|
%
|
|
194,893
|
|
|
95.4
|
%
|
|
204,177
|
|
|
94.7
|
%
|
|
All other feedstocks
and blendstocks
|
8,778
|
|
|
4.2
|
%
|
|
10,761
|
|
|
5.1
|
%
|
|
9,476
|
|
|
4.6
|
%
|
|
11,487
|
|
|
5.3
|
%
|
|
Total
throughput
|
206,733
|
|
|
100.0
|
%
|
|
210,917
|
|
|
100.0
|
%
|
|
204,369
|
|
|
100.0
|
%
|
|
215,664
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
106,120
|
|
|
51.2
|
%
|
|
103,479
|
|
|
48.9
|
%
|
|
106,774
|
|
|
52.2
|
%
|
|
106,650
|
|
|
49.1
|
%
|
|
Distillate
|
84,669
|
|
|
40.9
|
%
|
|
88,479
|
|
|
41.8
|
%
|
|
83,101
|
|
|
40.6
|
%
|
|
91,262
|
|
|
42.0
|
%
|
|
Other (excluding
internally produced fuel)
|
16,390
|
|
|
7.9
|
%
|
|
19,608
|
|
|
9.3
|
%
|
|
14,738
|
|
|
7.2
|
%
|
|
19,210
|
|
|
8.9
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
207,179
|
|
|
100.0
|
%
|
|
211,566
|
|
|
100.0
|
%
|
|
204,613
|
|
|
100.0
|
%
|
|
217,122
|
|
|
100.0
|
%
|
|
Product price
(dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
$
|
1.45
|
|
|
|
|
$
|
1.72
|
|
|
|
|
$
|
1.31
|
|
|
|
|
$
|
1.69
|
|
|
|
|
Distillate
|
1.45
|
|
|
|
|
1.60
|
|
|
|
|
1.30
|
|
|
|
|
1.70
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Market Indicators
(dollars per barrel):
|
|
|
|
|
|
|
|
|
West Texas
Intermediate (WTI) NYMEX
|
$
|
44.94
|
|
|
$
|
46.50
|
|
|
$
|
41.53
|
|
|
$
|
51.01
|
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
WTI less WTS
(light/medium sour)
|
1.47
|
|
|
(1.62)
|
|
|
0.82
|
|
|
(0.47)
|
|
|
WTI less WCS (heavy
sour)
|
14.23
|
|
|
15.14
|
|
|
13.59
|
|
|
12.79
|
|
|
NYMEX Crack
Spreads:
|
|
|
|
|
|
|
|
|
Gasoline
|
13.73
|
|
|
22.23
|
|
|
16.24
|
|
|
22.30
|
|
|
Heating
Oil
|
14.34
|
|
|
20.05
|
|
|
13.04
|
|
|
22.87
|
|
|
NYMEX 2-1-1 Crack
Spread
|
14.03
|
|
|
21.14
|
|
|
14.64
|
|
|
22.59
|
|
|
PADD II Group 3
Basis:
|
|
|
|
|
|
|
|
|
Gasoline
|
0.48
|
|
|
0.63
|
|
|
(3.59)
|
|
|
(2.99)
|
|
|
Ultra Low Sulfur
Diesel
|
1.01
|
|
|
0.27
|
|
|
(0.38)
|
|
|
(2.61)
|
|
|
PADD II Group 3
Product Crack Spread:
|
|
|
|
|
|
|
|
|
Gasoline
|
14.21
|
|
|
22.87
|
|
|
12.65
|
|
|
19.31
|
|
|
Ultra Low Sulfur
Diesel
|
15.35
|
|
|
20.31
|
|
|
12.65
|
|
|
20.26
|
|
|
PADD II Group 3
2-1-1
|
14.78
|
|
|
21.59
|
|
|
12.65
|
|
|
19.78
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except operating statistics)
|
|
Coffeyville
Refinery Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
788.1
|
|
|
$
|
840.0
|
|
|
$
|
2,094.1
|
|
|
$
|
2,698.0
|
|
|
Cost of product
sold
|
669.9
|
|
|
669.9
|
|
|
1,763.3
|
|
|
2,135.6
|
|
|
Refining
margin*
|
118.2
|
|
|
170.1
|
|
|
330.8
|
|
|
562.4
|
|
|
Direct operating
expenses
|
50.7
|
|
|
54.0
|
|
|
144.5
|
|
|
155.6
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
15.6
|
|
|
31.5
|
|
|
17.2
|
|
|
Flood insurance
recovery
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Depreciation and
amortization
|
17.7
|
|
|
15.7
|
|
|
51.4
|
|
|
54.7
|
|
|
Gross
profit
|
$
|
49.8
|
|
|
$
|
84.8
|
|
|
$
|
103.4
|
|
|
$
|
362.2
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
122.2
|
|
|
$
|
201.3
|
|
|
$
|
308.4
|
|
|
$
|
582.9
|
|
|
|
|
|
|
|
|
|
|
Coffeyville
Refinery Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
9.86
|
|
|
$
|
15.57
|
|
|
$
|
9.94
|
|
|
$
|
16.42
|
|
|
FIFO impact,
(favorable) unfavorable
|
0.33
|
|
|
2.85
|
|
|
(0.67)
|
|
|
0.60
|
|
|
Refining margin
adjusted for FIFO impact*
|
10.19
|
|
|
18.42
|
|
|
9.27
|
|
|
17.02
|
|
|
Gross
profit
|
4.15
|
|
|
7.76
|
|
|
3.11
|
|
|
10.58
|
|
|
Gross profit
excluding flood insurance recovery*
|
4.15
|
|
|
7.76
|
|
|
3.11
|
|
|
9.78
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
4.23
|
|
|
6.37
|
|
|
5.29
|
|
|
5.05
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
4.23
|
|
|
4.95
|
|
|
4.34
|
|
|
4.54
|
|
|
Direct operating
expenses and major scheduled turnaround expenses per barrel
sold
|
3.93
|
|
|
5.95
|
|
|
4.80
|
|
|
4.61
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
3.93
|
|
|
$
|
4.62
|
|
|
$
|
3.94
|
|
|
$
|
4.15
|
|
|
Barrels sold (barrels
per day)
|
140,256
|
|
|
127,089
|
|
|
133,729
|
|
|
137,365
|
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Coffeyville
Refinery Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
110,825
|
|
|
81.0
|
%
|
|
105,314
|
|
|
83.3
|
%
|
|
101,803
|
|
|
79.2
|
%
|
|
106,256
|
|
|
79.2
|
%
|
|
Medium
|
—
|
|
|
—
|
%
|
|
552
|
|
|
0.4
|
%
|
|
1,641
|
|
|
1.3
|
%
|
|
2,732
|
|
|
2.0
|
%
|
|
Heavy sour
|
19,568
|
|
|
14.3
|
%
|
|
12,891
|
|
|
10.2
|
%
|
|
17,978
|
|
|
13.9
|
%
|
|
16,476
|
|
|
12.3
|
%
|
|
Total crude oil
throughput
|
130,393
|
|
|
95.3
|
%
|
|
118,757
|
|
|
93.9
|
%
|
|
121,422
|
|
|
94.4
|
%
|
|
125,464
|
|
|
93.5
|
%
|
|
All other feedstocks
and blendstocks
|
6,399
|
|
|
4.7
|
%
|
|
7,753
|
|
|
6.1
|
%
|
|
7,193
|
|
|
5.6
|
%
|
|
8,691
|
|
|
6.5
|
%
|
|
Total
throughput
|
136,792
|
|
|
100.0
|
%
|
|
126,510
|
|
|
100.0
|
%
|
|
128,615
|
|
|
100.0
|
%
|
|
134,155
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
70,013
|
|
|
50.3
|
%
|
|
60,849
|
|
|
47.3
|
%
|
|
67,298
|
|
|
51.5
|
%
|
|
65,000
|
|
|
47.4
|
%
|
|
Distillate
|
57,839
|
|
|
41.6
|
%
|
|
55,521
|
|
|
43.1
|
%
|
|
54,192
|
|
|
41.5
|
%
|
|
59,050
|
|
|
43.0
|
%
|
|
Other (excluding
internally produced fuel)
|
11,286
|
|
|
8.1
|
%
|
|
12,407
|
|
|
9.6
|
%
|
|
9,191
|
|
|
7.0
|
%
|
|
13,115
|
|
|
9.6
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
139,138
|
|
|
100.0
|
%
|
|
128,777
|
|
|
100.0
|
%
|
|
130,681
|
|
|
100.0
|
%
|
|
137,165
|
|
|
100.0
|
%
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except operating statistics)
|
|
Wynnewood Refinery
Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
374.3
|
|
|
$
|
520.5
|
|
|
$
|
1,064.4
|
|
|
$
|
1,512.3
|
|
|
Cost of product
sold
|
317.7
|
|
|
393.1
|
|
|
888.5
|
|
|
1,164.5
|
|
|
Refining
margin*
|
56.6
|
|
|
127.4
|
|
|
175.9
|
|
|
347.8
|
|
|
Direct operating
expenses
|
46.3
|
|
|
42.9
|
|
|
122.7
|
|
|
117.0
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
12.7
|
|
|
12.5
|
|
|
38.0
|
|
|
37.6
|
|
|
Gross profit
(loss)
|
$
|
(2.4)
|
|
|
$
|
72.0
|
|
|
$
|
15.2
|
|
|
$
|
193.2
|
|
|
|
|
|
|
|
|
|
|
Refining margin
adjusted for FIFO impact*
|
$
|
60.4
|
|
|
$
|
141.8
|
|
|
$
|
168.6
|
|
|
$
|
361.0
|
|
|
|
|
|
|
|
|
|
|
Wynnewood Refinery
Key Operating Statistics:
|
|
|
|
|
|
|
|
|
Per crude oil
throughput barrel:
|
|
|
|
|
|
|
|
|
Refining
margin*
|
$
|
9.10
|
|
|
$
|
17.01
|
|
|
$
|
8.74
|
|
|
$
|
16.18
|
|
|
FIFO impact,
(favorable) unfavorable
|
0.61
|
|
|
1.93
|
|
|
(0.36)
|
|
|
0.61
|
|
|
Refining margin
adjusted for FIFO impact*
|
9.71
|
|
|
18.94
|
|
|
8.38
|
|
|
16.79
|
|
|
Gross profit
(loss)
|
(0.39)
|
|
|
9.61
|
|
|
0.76
|
|
|
8.99
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
|
7.45
|
|
|
5.73
|
|
|
6.10
|
|
|
5.44
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses
|
7.45
|
|
|
5.73
|
|
|
6.10
|
|
|
5.44
|
|
|
Direct operating
expenses and major scheduled turnaround expenses
per barrel
sold
|
7.29
|
|
|
5.53
|
|
|
$
|
6.01
|
|
|
$
|
5.33
|
|
|
Direct operating
expenses excluding major scheduled turnaround expenses per barrel
sold
|
$
|
7.29
|
|
|
$
|
5.53
|
|
|
$
|
6.01
|
|
|
$
|
5.33
|
|
|
Barrels sold (barrels
per day)
|
68,971
|
|
|
84,351
|
|
|
74,463
|
|
|
80,332
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Wynnewood Refinery
Throughput and Production Data (bpd):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sweet
|
65,579
|
|
|
93.8
|
%
|
|
79,914
|
|
|
94.6
|
%
|
|
72,791
|
|
|
96.1
|
%
|
|
78,225
|
|
|
96.0
|
%
|
|
Medium
|
1,983
|
|
|
2.8
|
%
|
|
1,485
|
|
|
1.8
|
%
|
|
680
|
|
|
0.9
|
%
|
|
488
|
|
|
0.6
|
%
|
|
Heavy sour
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
Total crude oil
throughput
|
67,562
|
|
|
96.6
|
%
|
|
81,399
|
|
|
96.4
|
%
|
|
73,471
|
|
|
97.0
|
%
|
|
78,713
|
|
|
96.6
|
%
|
|
All other feedstocks
and blendstocks
|
2,379
|
|
|
3.4
|
%
|
|
3,008
|
|
|
3.6
|
%
|
|
2,283
|
|
|
3.0
|
%
|
|
2,796
|
|
|
3.4
|
%
|
|
Total
throughput
|
69,941
|
|
|
100.0
|
%
|
|
84,407
|
|
|
100.0
|
%
|
|
75,754
|
|
|
100.0
|
%
|
|
81,509
|
|
|
100.0
|
%
|
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline
|
36,107
|
|
|
53.1
|
%
|
|
42,630
|
|
|
51.5
|
%
|
|
39,476
|
|
|
53.4
|
%
|
|
41,650
|
|
|
52.1
|
%
|
|
Distillate
|
26,830
|
|
|
39.4
|
%
|
|
32,958
|
|
|
39.8
|
%
|
|
28,909
|
|
|
39.1
|
%
|
|
32,212
|
|
|
40.3
|
%
|
|
Other (excluding
internally produced fuel)
|
5,104
|
|
|
7.5
|
%
|
|
7,201
|
|
|
8.7
|
%
|
|
5,547
|
|
|
7.5
|
%
|
|
6,095
|
|
|
7.6
|
%
|
|
Total refining
production (excluding internally produced fuel)
|
68,041
|
|
|
100.0
|
%
|
|
82,789
|
|
|
100.0
|
%
|
|
73,932
|
|
|
100.0
|
%
|
|
79,957
|
|
|
100.0
|
%
|
|
|
|
* See "Use of
Non-GAAP Financial Measures" below.
|
Nitrogen Fertilizer Segment Operating Data
The following tables set forth information about the Nitrogen
Fertilizer segment operated by CVR Partners, of which we owned
approximately 34% of the common units as of September 30, 2016
and serve as the general partner. The financial and operational
data for the three and nine months ended September 30, 2016 include the results of the
nitrogen fertilizer manufacturing facility located in East Dubuque, Illinois (the "East Dubuque
Facility") beginning on April 1,
2016, the date of the closing of the acquisition.
Reconciliations of certain non-GAAP financial measures are provided
under "Use of Non-GAAP Financial Measures" below. Additional
discussion of operating results for the Nitrogen Fertilizer segment
for the quarter and nine months ended September 30, 2016 are
included in CVR Partners' press release dated October 27,
2016.
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Nitrogen
Fertilizer Segment Business Financial Results:
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
78.5
|
|
|
$
|
49.3
|
|
|
$
|
271.4
|
|
|
$
|
223.2
|
|
|
Cost of product
sold
|
19.9
|
|
|
14.5
|
|
|
72.2
|
|
|
55.7
|
|
|
Direct operating
expenses
|
32.5
|
|
|
26.6
|
|
|
103.8
|
|
|
75.7
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
6.6
|
|
|
6.6
|
|
|
7.0
|
|
|
Selling, general and
administrative expenses
|
7.3
|
|
|
6.0
|
|
|
22.0
|
|
|
15.2
|
|
|
Depreciation and
amortization
|
16.4
|
|
|
7.4
|
|
|
41.0
|
|
|
21.2
|
|
|
Operating income
(loss)
|
2.4
|
|
|
(11.8)
|
|
|
25.8
|
|
|
48.4
|
|
|
Interest expense and
other financing costs
|
(15.6)
|
|
|
(1.8)
|
|
|
(32.8)
|
|
|
(5.2)
|
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(5.1)
|
|
|
—
|
|
|
Other income,
net
|
—
|
|
|
0.1
|
|
|
|
|
0.1
|
|
|
Income (loss) before
income tax expense
|
(13.2)
|
|
|
(13.5)
|
|
|
(12.1)
|
|
|
43.3
|
|
|
Income tax
expense
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
Net income
(loss)
|
$
|
(13.4)
|
|
|
$
|
(13.5)
|
|
|
$
|
(12.4)
|
|
|
$
|
43.3
|
|
|
|
|
|
|
|
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA*
|
$
|
17.4
|
|
|
$
|
3.8
|
|
|
$
|
74.4
|
|
|
$
|
78.3
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Nitrogen
Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated sales
(thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia
|
47.7
|
|
|
7.8
|
|
|
145.7
|
|
|
26.9
|
|
|
UAN
|
296.0
|
|
|
174.5
|
|
|
902.4
|
|
|
698.8
|
|
|
|
|
|
|
|
|
|
|
Consolidated product
pricing at gate (dollars per ton) (1):
|
|
|
|
|
|
|
|
|
Ammonia
|
$
|
345
|
|
|
$
|
478
|
|
|
$
|
385
|
|
|
$
|
529
|
|
|
UAN
|
$
|
154
|
|
|
$
|
227
|
|
|
$
|
187
|
|
|
$
|
256
|
|
|
|
|
|
|
|
|
|
|
Consolidated
production volume (thousand tons):
|
|
|
|
|
|
|
|
|
Ammonia (gross
produced) (2)
|
200.8
|
|
|
66.3
|
|
|
485.9
|
|
|
269.4
|
|
|
Ammonia (net available
for sale) (2)(3)
|
60.3
|
|
|
12.1
|
|
|
121.0
|
|
|
31.2
|
|
|
UAN
|
317.2
|
|
|
152.4
|
|
|
861.9
|
|
|
658.1
|
|
|
|
|
|
|
|
|
|
|
Feedstock:
|
|
|
|
|
|
|
|
|
Petroleum coke used in
production (thousand tons)
|
126.8
|
|
|
82.7
|
|
|
384.4
|
|
|
335.8
|
|
|
Petroleum coke used in
production (dollars per ton)
|
$
|
13
|
|
|
$
|
25
|
|
|
$
|
14
|
|
|
$
|
26
|
|
|
Natural gas used in
production (thousands of MMBtus) (4)
|
2,075.5
|
|
|
—
|
|
|
3,471.6
|
|
|
—
|
|
|
Natural gas used in
production (dollars per MMBtu) (4)
|
$
|
2.97
|
|
|
$
|
—
|
|
|
$
|
2.75
|
|
|
$
|
—
|
|
|
Natural gas in cost of
product sold (thousands of MMBtus) (4)
|
1,679.5
|
|
|
—
|
|
|
2,742.5
|
|
|
—
|
|
|
Natural gas in cost of
product sold (dollars per MMBtu) (4)
|
$
|
2.92
|
|
|
$
|
—
|
|
|
$
|
2.68
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Coffeyville Facility
on-stream factor (5):
|
|
|
|
|
|
|
|
|
Gasification
|
95.9
|
%
|
|
62.2
|
%
|
|
97.2
|
%
|
|
87.1
|
%
|
|
Ammonia
|
94.7
|
%
|
|
57.8
|
%
|
|
96.2
|
%
|
|
83.7
|
%
|
|
UAN
|
94.1
|
%
|
|
56.7
|
%
|
|
93.1
|
%
|
|
83.6
|
%
|
|
|
|
|
|
|
|
|
|
East Dubuque Facility
on-stream factors (5):
|
|
|
|
|
|
|
|
|
Ammonia
|
94.4
|
%
|
|
—
|
%
|
|
81.7
|
%
|
|
—
|
%
|
|
UAN
|
92.9
|
%
|
|
—
|
%
|
|
81.1
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
Market
Indicators:
|
|
|
|
|
|
|
|
|
Ammonia — Southern
Plains (dollars per ton)
|
$
|
315
|
|
|
$
|
478
|
|
|
$
|
368
|
|
|
$
|
526
|
|
|
Ammonia — Corn belt
(dollars per ton)
|
$
|
372
|
|
|
$
|
533
|
|
|
$
|
432
|
|
|
$
|
580
|
|
|
UAN — Corn belt
(dollars per ton)
|
$
|
188
|
|
|
$
|
264
|
|
|
$
|
218
|
|
|
$
|
294
|
|
|
Natural gas NYMEX
(dollars per MMBtu)
|
$
|
2.79
|
|
|
$
|
2.74
|
|
|
$
|
2.35
|
|
|
$
|
2.76
|
|
|
|
|
Cost of product sold,
direct operating expenses and selling, general and administrative
expenses are all reflected exclusive of depreciation and
amortization.
|
|
* See Use of
Non-GAAP Financial Measures below.
|
|
|
|
(1)
|
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.
|
|
|
|
(2)
|
Gross tons produced
for ammonia represent total ammonia produced, including ammonia
produced that was upgraded into other fertilizer products. Net tons
available for sale represent the ammonia available for sale that
was not upgraded into other fertilizer products.
|
|
|
|
(3)
|
In addition to the
produced ammonia, the Nitrogen Fertilizer segment acquired
approximately 0 tons and 7,500 tons of ammonia during the three
months ended September 30, 2016 and 2015, respectively. The
Nitrogen Fertilizer segment acquired approximately 8,000 tons and
29,300 tons of ammonia during the nine months ended
September 30, 2016 and 2015, respectively.
|
|
|
|
(4)
|
The cost per MMBtu
excludes derivative activity, when applicable. The impact of
natural gas derivative activity during the three and nine months
ended September 30, 2016 and 2015 was not material.
|
|
|
|
(5)
|
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.
|
Excluding the impact of the full facility turnaround and the
Linde air separation unit outages at the Coffeyville Facility, the
on-stream factors would have been 100.0% for gasifier, 97.3% for
ammonia and 96.2% for UAN for the three months ended September 30, 2015.
Excluding the impact of the full facility turnaround and the
Linde air separation unit outages at the Coffeyville Facility, the
on-stream factors would have been 99.8% for gasifier, 97.0% for
ammonia and 96.9% for UAN for the nine months ended September 30, 2015.
Excluding the impact of the full facility turnaround at the East
Dubuque Facility, the on-stream factors for the East Dubuque
Facility would have been 97.2% for ammonia and 96.2% for UAN for
the six months ended September 30, 2016.
Use of Non-GAAP Financial Measures
To supplement the Company's actual results in accordance with
GAAP for the applicable periods, the Company also uses the non-GAAP
financial measures noted above, which are reconciled to our
GAAP-based results below. These non-GAAP financial measures should
not be considered an alternative for GAAP results. The adjustments
are provided to enhance an overall understanding of the Company's
financial performance for the applicable periods and are indicators
management believes are relevant and useful for planning and
forecasting future periods.
Adjusted net income is not a recognized term under GAAP and
should not be substituted for net income as a measure of our
performance but rather should be utilized as a supplemental measure
of financial performance in evaluating our business. Management
believes that adjusted net income provides relevant and useful
information that enables external users of our financial
statements, such as industry analysts, investors, lenders and
rating agencies, to better understand and evaluate our ongoing
operating results and allow for greater transparency in the review
of our overall financial, operational and economic performance.
Adjusted net income per diluted share represents adjusted net
income divided by weighted-average diluted shares outstanding.
Adjusted net income represents net income, as adjusted, that is
attributable to CVR Energy stockholders.
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in millions,
except per share data)
|
|
Reconciliation of
Net Income to Adjusted Net Income:
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
$
|
4.5
|
|
|
$
|
122.0
|
|
|
$
|
17.3
|
|
|
$
|
480.9
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
FIFO impact,
(favorable) unfavorable
|
7.7
|
|
|
45.6
|
|
|
(29.7)
|
|
|
33.7
|
|
|
Share-based
compensation (1)
|
—
|
|
|
3.2
|
|
|
—
|
|
|
9.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
22.2
|
|
|
38.1
|
|
|
24.2
|
|
|
(Gain) loss on
derivatives, net
|
1.7
|
|
|
(11.8)
|
|
|
4.8
|
|
|
52.2
|
|
|
Current period
settlement on derivative contracts (2)
|
6.7
|
|
|
0.8
|
|
|
35.2
|
|
|
(34.0)
|
|
|
Flood insurance
recovery (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Loss on
extinguishment of debt (4)
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
Expenses associated
with the East Dubuque Merger (5)
|
0.7
|
|
|
1.5
|
|
|
3.1
|
|
|
1.5
|
|
|
Insurance recovery -
business interruption (6)
|
(2.1)
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
Adjusted net income
before income tax expense and noncontrolling interest
|
19.2
|
|
|
183.5
|
|
|
71.8
|
|
|
540.3
|
|
|
Adjusted net loss
attributed to noncontrolling interest
|
(1.1)
|
|
|
(62.0)
|
|
|
(19.7)
|
|
|
(179.5)
|
|
|
Income tax expense,
as adjusted
|
(6.6)
|
|
|
(39.1)
|
|
|
(15.1)
|
|
|
(121.4)
|
|
|
Adjusted net
income*
|
$
|
11.5
|
|
|
$
|
82.4
|
|
|
$
|
37.0
|
|
|
$
|
239.4
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per diluted share*
|
$
|
0.13
|
|
|
$
|
0.95
|
|
|
$
|
0.43
|
|
|
$
|
2.76
|
|
Refining margin per crude oil throughput barrel is a measurement
calculated as the difference between the Petroleum segment's 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 the refineries'
performance as a general indication of the amount above their cost
of product sold at which they 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 Petroleum segment's Statements of
Operations. Our calculation of refining margin may differ from
similar calculations of other companies in the industry, thereby
limiting its usefulness as a comparative measure. In order to
derive the refining margin per crude oil throughput barrel, we
utilize the total dollar figures for refining margin as derived
above and divide by the applicable number of crude oil throughput
barrels for the period. We believe that refining margin is
important to enable investors to better understand and evaluate the
Petroleum segment's ongoing operating results and allow for greater
transparency in the review of our overall financial, operational
and economic performance.
Refining margin per crude oil throughput barrel adjusted for
FIFO impact is a measurement calculated as the difference between
the Petroleum segment's net sales and cost of product sold
(exclusive of depreciation and amortization) adjusted for FIFO
impact. Refining margin adjusted for FIFO impact is a non-GAAP
measure that we believe is important to investors in evaluating the
refineries' performance as a general indication of the amount above
their cost of product sold (taking into account the impact of the
utilization of FIFO) at which they are able to sell refined
products. Our calculation of refining margin adjusted for FIFO
impact may differ from calculations of other companies in the
industry, thereby limiting its usefulness as a comparative measure.
Under the FIFO accounting method, changes in crude oil prices can
cause fluctuations in the inventory valuation of crude oil, work in
process and finished goods, thereby resulting in a favorable FIFO
impact when crude oil prices increase and an unfavorable FIFO
impact when crude oil prices decrease.
Gross profit excluding flood insurance recovery is calculated as
the difference between the Petroleum segment's net sales, cost of
product sold (exclusive of depreciation and amortization), direct
operating expenses (exclusive of depreciation and amortization),
major scheduled turnaround expenses and depreciation and
amortization. Gross profit excluding flood insurance recovery
per crude throughput barrel is calculated as gross profit excluding
flood insurance recovery as derived above divided by the
refineries' crude oil throughput volumes for the respective periods
presented. Gross profit excluding flood insurance recovery is a
non-GAAP measure that should not be substituted for operating
income. Management believes it is important to investors in
evaluating the refineries' performance and the Petroleum segment's
ongoing operating results. Our calculation of gross profit
excluding flood insurance recovery may differ from similar
calculations of other companies in the industry, thereby limiting
its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income
attributable to CVR Energy stockholders before consolidated (i)
interest expense and other financing costs, net of interest income,
(ii) income tax expense, (iii) depreciation and amortization, less
the portion of these adjustments attributable to noncontrolling
interest. Adjusted EBITDA represents EBITDA adjusted for
consolidated (i) FIFO impact (favorable) unfavorable; (ii) loss on
extinguishment of debt; (iii) major scheduled turnaround expenses
(that many of our competitors capitalize and thereby exclude from
their measures of EBITDA and adjusted EBITDA); (iv) (gain) loss on
derivatives, net; (v) current period settlements on derivative
contracts; (vi) flood insurance recovery; (vii) expenses associated
with the East Dubuque Merger and (viii) business interruption
insurance recovery, less the portion of these adjustments
attributable to noncontrolling interest. EBITDA and Adjusted EBITDA
are not recognized terms under GAAP and should not be substituted
for net income (loss) or cash flow from operations. Management
believes that EBITDA and Adjusted EBITDA enable investors to better
understand and evaluate our ongoing operating results and allow for
greater transparency in reviewing our overall financial,
operational and economic performance. EBITDA and Adjusted EBITDA
presented by other companies may not be comparable to our
presentation, since each company may define these terms
differently. EBITDA and Adjusted EBITDA represent EBITDA and
Adjusted EBITDA that is attributable to CVR Energy
stockholders.
EBITDA for the quarter and nine months ended September 30, 2015 was also adjusted for
share-based compensation expense in calculating Adjusted
EBITDA. Beginning in 2016, share-based compensation expense
is no longer utilized as an adjustment to derive Adjusted EBITDA as
no equity-settled awards remain outstanding for CVR Energy or any
of its subsidiaries, and CVR Partners and CVR Refining are
responsible for reimbursing CVR Energy for their allocated portion
of all outstanding awards. Management believes, based on the
nature, classification and cash settlement feature of the currently
outstanding awards, that it is no longer necessary to adjust EBITDA
for share-based compensation expense to derive Adjusted EBITDA. For
comparison purposes we have also provided Adjusted EBITDA for the
quarter and nine months ended September 30,
2015 without adjusting for share-based compensation expense
in order to provide a comparison to Adjusted EBITDA for the quarter
and nine months ended September 30,
2016.
A reconciliation of net income attributable to CVR Energy
stockholders to EBITDA and EBITDA to Adjusted EBITDA for the
quarter and nine months ended September 30, 2016 and 2015 is
as follows:
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Net income
attributable to CVR Energy stockholders
|
$
|
5.4
|
|
|
$
|
57.9
|
|
|
$
|
17.6
|
|
|
$
|
214.6
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
26.0
|
|
|
11.6
|
|
|
56.3
|
|
|
35.8
|
|
|
Income tax
expense
|
2.5
|
|
|
23.1
|
|
|
2.3
|
|
|
105.2
|
|
|
Depreciation and
amortization
|
50.1
|
|
|
38.7
|
|
|
140.8
|
|
|
123.2
|
|
|
Adjustments
attributable to noncontrolling interest
|
(35.9)
|
|
|
(18.0)
|
|
|
(90.3)
|
|
|
(56.6)
|
|
|
EBITDA
|
48.1
|
|
|
113.3
|
|
|
126.7
|
|
|
422.2
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impact,
(favorable) unfavorable
|
7.7
|
|
|
45.6
|
|
|
(29.7)
|
|
|
33.7
|
|
|
Share-based
compensation (1)
|
—
|
|
|
3.2
|
|
|
—
|
|
|
9.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
22.2
|
|
|
38.1
|
|
|
24.2
|
|
|
(Gain) loss on
derivatives, net
|
1.7
|
|
|
(11.8)
|
|
|
4.8
|
|
|
52.2
|
|
|
Current period
settlement on derivative contracts (2)
|
6.7
|
|
|
0.8
|
|
|
35.2
|
|
|
(34.0)
|
|
|
Flood insurance
recovery (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Loss on
extinguishment of debt (4)
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
Expenses associated
with the East Dubuque Merger (5)
|
0.7
|
|
|
1.5
|
|
|
3.1
|
|
|
1.5
|
|
|
Insurance recovery -
business interruption (6)
|
(2.1)
|
|
|
—
|
|
|
(2.1)
|
|
|
—
|
|
|
Adjustments
attributable to noncontrolling interest
|
(4.6)
|
|
|
(21.0)
|
|
|
(22.4)
|
|
|
(18.4)
|
|
|
Adjusted
EBITDA
|
$
|
58.2
|
|
|
$
|
153.8
|
|
|
$
|
158.8
|
|
|
$
|
463.2
|
|
Petroleum and Nitrogen Fertilizer EBITDA and Adjusted EBITDA.
EBITDA by operating segment represents net income (loss) before (i)
interest expense and other financing costs, net of interest income,
(ii) income tax expense and (iii) depreciation and amortization.
Adjusted EBITDA by operating segment represents EBITDA by operating
segment adjusted for, as applicable (i) FIFO impact (favorable)
unfavorable; (ii) share-based compensation, non-cash; (iii) loss on
extinguishment of debt; (iv) major scheduled turnaround expenses
(that many of our competitors capitalize and thereby exclude from
their measures of EBITDA and adjusted EBITDA); (v) (gain) loss on
derivatives, net; (vi) current period settlements on derivative
contracts; (vii) flood insurance recovery; (viii) transaction
expenses associated with the East Dubuque Merger and (ix) business
interruption insurance recovery, less the portion of these
adjustments attributable to noncontrolling interest. We present
Adjusted EBITDA by operating segment because it is the starting
point for CVR Refining's and CVR Partners' calculation of available
cash for distribution. EBITDA and Adjusted EBITDA by operating
segment are not recognized terms under GAAP and should not be
substituted for net income (loss) as a measure of performance.
Management believes that EBITDA and Adjusted EBITDA by operating
segment enable investors to better understand CVR Refining's and
CVR Partners' ability to make distributions to their common
unitholders, help investors evaluate our ongoing operating results
and allow for greater transparency in reviewing our overall
financial, operational and economic performance. EBITDA and
Adjusted EBITDA presented by other companies may not be comparable
to our presentation, since each company may define these terms
differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to
Adjusted EBITDA for the Petroleum and Nitrogen Fertilizer segments
for the quarter and nine months ended September 30, 2016 and
2015 is as follows:
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Petroleum:
|
|
|
|
|
|
|
|
|
Petroleum net
income
|
$
|
15.9
|
|
|
$
|
138.9
|
|
|
$
|
26.0
|
|
|
$
|
413.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net of interest income
|
10.8
|
|
|
10.3
|
|
|
31.7
|
|
|
31.9
|
|
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Depreciation and
amortization
|
32.5
|
|
|
29.9
|
|
|
95.6
|
|
|
98.1
|
|
|
Petroleum
EBITDA
|
59.2
|
|
|
179.1
|
|
|
153.3
|
|
|
543.4
|
|
|
Add:
|
|
|
|
|
|
|
|
|
FIFO impact,
(favorable) unfavorable
|
7.7
|
|
|
45.6
|
|
|
(29.7)
|
|
|
33.7
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
15.6
|
|
|
31.5
|
|
|
17.2
|
|
|
(Gain) loss on
derivatives, net
|
1.7
|
|
|
(11.8)
|
|
|
4.8
|
|
|
52.2
|
|
|
Current period
settlements on derivative contracts (2)
|
6.7
|
|
|
0.8
|
|
|
35.2
|
|
|
(34.0)
|
|
|
Flood insurance
recovery (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.3)
|
|
|
Adjusted Petroleum
EBITDA
|
$
|
75.3
|
|
|
$
|
229.6
|
|
|
$
|
195.1
|
|
|
$
|
585.6
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
millions)
|
|
Nitrogen
Fertilizer:
|
|
|
|
|
|
|
|
|
Nitrogen fertilizer
net income (loss)
|
$
|
(13.4)
|
|
|
$
|
(13.5)
|
|
|
$
|
(12.4)
|
|
|
$
|
43.3
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Interest expense and
other financing costs, net
|
15.6
|
|
|
1.8
|
|
|
32.8
|
|
|
5.2
|
|
|
Income tax
expense
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
Depreciation and
amortization
|
16.4
|
|
|
7.4
|
|
|
41.0
|
|
|
21.2
|
|
|
Nitrogen Fertilizer
EBITDA
|
18.8
|
|
|
(4.3)
|
|
|
61.7
|
|
|
69.7
|
|
|
Add:
|
|
|
|
|
|
|
|
|
Share-based
compensation, non-cash
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Major scheduled
turnaround expenses
|
—
|
|
|
6.6
|
|
|
6.6
|
|
|
7.0
|
|
|
Loss on
extinguishment of debt (4)
|
—
|
|
|
—
|
|
|
5.1
|
|
|
—
|
|
|
Expenses associated
with the East Dubuque Merger (5)
|
0.7
|
|
|
1.5
|
|
|
3.1
|
|
|
1.5
|
|
|
Insurance recovery -
business interruption (6)
|
$
|
(2.1)
|
|
|
$
|
—
|
|
|
$
|
(2.1)
|
|
|
$
|
—
|
|
|
Adjusted Nitrogen
Fertilizer EBITDA
|
$
|
17.4
|
|
|
$
|
3.8
|
|
|
$
|
74.4
|
|
|
$
|
78.3
|
|
|
|
|
|
|
(1)
|
Beginning in 2016,
share-based compensation expense is no longer utilized as an
adjustment to derive Adjusted net income and Adjusted EBITDA as no
equity-settled awards remain outstanding for CVR Energy or any of
its subsidiaries, and CVR Partners and CVR Refining are responsible
for reimbursing CVR Energy for their allocated portion of all
outstanding awards. Management believes, based on the nature,
classification and cash settlement feature of the currently
outstanding awards, that it is no longer necessary to adjust net
income (loss) and EBITDA for share-based compensation expense to
derive Adjusted net income and Adjusted EBITDA. Adjusted net income
and Adjusted EBITDA for the three months ended September 30, 2015
would have been $80.4 million and $150.6 million, respectively,
without adjusting for share-based compensation expense of $3.2
million. Additionally, Adjusted net income and Adjusted EBITDA for
the nine months ended September 30, 2015 would have been $233.9
million and $454.1 million, respectively, without adjusting for
share-based compensation expense of $9.1 million.
|
|
|
|
(2)
|
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.
|
|
|
|
(3)
|
Represents an
insurance recovery from Coffeyville Resources Refining and
Marketing, LLC's environmental insurance carriers as a result of
the flood and crude oil discharge at the Coffeyville refinery on
June/July 2007.
|
|
|
|
(4)
|
Represents a loss on
extinguishment of debt incurred by CVR Partners in June 2016 in
connection with the repurchase of senior notes assumed in the East
Dubuque Merger, which includes a prepayment premium and write-off
of the unamortized purchase accounting adjustment.
|
|
|
|
(5)
|
On April 1, 2016, CVR
Partners completed the East Dubuque Merger. CVR Partners incurred
legal and other professional fees and other merger related expenses
for the quarter and nine months ended September 30, 2016 that
are referred to herein as transaction expenses associated with the
East Dubuque Merger, which are included in selling, general and
administrative expenses.
|
|
|
|
(6)
|
CVR Partners received
a business interruption insurance recovery of $2.1 million in the
third quarter of 2016.
|
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SOURCE CVR Energy, Inc.