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Share Name | Share Symbol | Market | Type |
---|---|---|---|
CVR Energy Inc | NYSE:CVI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 24.81 | 0 | 09:03:03 |
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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2018
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OR
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¨
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from
to
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Delaware
|
61-1512186
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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2277 Plaza Drive, Suite 500
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Sugar Land, Texas
(Address of principal executive offices)
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77479
(Zip Code)
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Large accelerated filer
o
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Accelerated filer
þ
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Non-accelerated filer
o
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(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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Page No.
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June 30, 2018
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December 31, 2017
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||||
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(unaudited)
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|
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||||
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(in millions, except share data)
|
||||||
ASSETS
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|||||||
Current assets:
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|
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|
||||
Cash and cash equivalents (including $286 and $223, respectively, of consolidated variable interest entities ("VIEs"))
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$
|
534
|
|
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$
|
482
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Accounts receivable of VIEs, net of allowance for doubtful accounts of $1 at both periods
|
190
|
|
|
179
|
|
||
Due from parent
|
—
|
|
|
5
|
|
||
Inventories of VIEs
|
433
|
|
|
385
|
|
||
Prepaid expenses and other current assets (including $42 and $30, respectively, of VIEs)
|
54
|
|
|
43
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|
||
Total current assets
|
1,211
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|
|
1,094
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|
||
Property, plant and equipment, net of accumulated depreciation (including $2,478 and $2,548, respectively, of VIEs)
|
2,494
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2,572
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|
||
Other long-term assets (including $135 and $137, respectively, of VIEs)
|
145
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141
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||
Total assets
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$
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3,850
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$
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3,807
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LIABILITIES AND EQUITY
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|||||||
Current liabilities:
|
|
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|
||||
Note payable and capital lease obligations of VIEs
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$
|
2
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$
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2
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Accounts payable (including $353 and $329, respectively, of VIEs)
|
356
|
|
|
334
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||
Due to parent
|
16
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|
|
—
|
|
||
Other current liabilities (including $130 and $181, respectively, of VIEs)
|
217
|
|
|
208
|
|
||
Total current liabilities
|
591
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|
544
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|
||
Long-term liabilities:
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||||
Long-term debt and capital lease obligations of VIEs, net of current portion
|
1,165
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1,164
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||
Deferred income taxes (including $1 of VIEs for both periods)
|
394
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|
|
386
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|
||
Other long-term liabilities (including $8 and $4, respectively, of VIEs)
|
13
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|
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9
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||
Total long-term liabilities
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1,572
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|
1,559
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|
||
Commitments and contingencies
|
|
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|
||||
Equity:
|
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|
||||
CVR stockholders' equity:
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||||
Common stock $0.01 par value per share, 350,000,000 shares authorized, 86,929,660 shares issued
|
1
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1
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||
Additional paid-in-capital
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1,197
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1,197
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|
||
Retained deficit
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(313
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)
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(277
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)
|
||
Treasury stock, 98,610 shares at cost
|
(2
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)
|
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(2
|
)
|
||
Total CVR stockholders' equity
|
883
|
|
|
919
|
|
||
Noncontrolling interest
|
804
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|
|
785
|
|
||
Total equity
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1,687
|
|
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1,704
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|
||
Total liabilities and equity
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$
|
3,850
|
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$
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3,807
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|
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Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(unaudited)
|
||||||||||||||
|
(in millions, except per share data)
|
||||||||||||||
Net sales
|
$
|
1,914
|
|
|
$
|
1,434
|
|
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$
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3,451
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|
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$
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2,942
|
|
Operating costs and expenses:
|
|
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||||||||
Cost of materials and other
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1,570
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|
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1,229
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2,809
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2,450
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|
||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below)
|
141
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|
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124
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|
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273
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|
|
262
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|
||||
Depreciation and amortization
|
52
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|
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52
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|
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102
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|
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100
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|
||||
Cost of sales
|
1,763
|
|
|
1,405
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3,184
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2,812
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||||
Selling, general and administrative expenses (exclusive of depreciation and amortization as reflected below)
|
32
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25
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55
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55
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|
||||
Depreciation and amortization
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3
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|
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2
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|
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6
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|
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5
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|
||||
Loss on asset disposals
|
5
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1
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5
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1
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|
||||
Operating income
|
111
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1
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201
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|
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69
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|
||||
Interest expense, net
|
(27
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)
|
|
(27
|
)
|
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(53
|
)
|
|
(54
|
)
|
||||
Gain on derivatives, net
|
10
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|
|
—
|
|
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70
|
|
|
12
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|
||||
Other income, net
|
2
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|
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—
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|
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3
|
|
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—
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|
||||
Income (loss) before income tax expense
|
96
|
|
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(26
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)
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|
221
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|
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27
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|
||||
Income tax expense (benefit)
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17
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(7
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)
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38
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8
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||||
Net income (loss)
|
79
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|
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(19
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)
|
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183
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|
|
19
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|
||||
Less: Net income (loss) attributable to noncontrolling interest
|
28
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|
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(8
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)
|
|
66
|
|
|
7
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|
||||
Net income (loss) attributable to CVR Energy stockholders
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$
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51
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$
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(11
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)
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$
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117
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$
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12
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||||||||
Basic and diluted earnings per share
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$
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0.59
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$
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(0.12
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)
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$
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1.35
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$
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0.13
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Dividends declared per share
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$
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0.75
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$
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0.50
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$
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1.25
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$
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1.00
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||||||||
Weighted-average common shares outstanding:
|
|
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|
|
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|
||||||||
Basic and diluted
|
86.8
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86.8
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86.8
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86.8
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|
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Six Months Ended
June 30, |
||||||
|
2018
|
|
2017
|
||||
|
(unaudited)
|
||||||
|
(in millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
183
|
|
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$
|
19
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|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
108
|
|
|
105
|
|
||
Deferred income taxes expense
|
8
|
|
|
7
|
|
||
Share-based compensation
|
12
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|
|
7
|
|
||
Other non-cash items
|
5
|
|
|
4
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Current assets and liabilities
|
(92
|
)
|
|
100
|
|
||
Non-current assets and liabilities
|
5
|
|
|
—
|
|
||
Net cash provided by operating activities
|
229
|
|
|
242
|
|
||
Cash flows from investing activities:
|
|
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|
||||
Capital expenditures
|
(42
|
)
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(58
|
)
|
||
Other investing activities
|
1
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|
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(1
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)
|
||
Net cash used in investing activities
|
(41
|
)
|
|
(59
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Dividends to CVR Energy's stockholders
|
(87
|
)
|
|
(87
|
)
|
||
Distributions to CVR Refining's noncontrolling interest holders
|
(48
|
)
|
|
—
|
|
||
Distributions to CVR Partners' noncontrolling interest holders
|
—
|
|
|
(2
|
)
|
||
Other financing activities
|
(1
|
)
|
|
—
|
|
||
Net cash used in financing activities
|
(136
|
)
|
|
(89
|
)
|
||
Net increase in cash and cash equivalents
|
52
|
|
|
94
|
|
||
Cash and cash equivalents, beginning of period
|
482
|
|
|
736
|
|
||
Cash and cash equivalents, end of period
|
$
|
534
|
|
|
$
|
830
|
|
|
|
June 30, 2018
|
||||||||||
Balance Sheet
|
|
As Reported
|
|
Balances Without Adoption of ASC 606
|
|
Effect of Change
|
||||||
|
|
|
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(in millions)
|
|
|
||||||
Assets
|
|
|
|
|
|
|
||||||
Accounts Receivable
|
|
$
|
190
|
|
|
$
|
180
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
||||||
Deferred Revenue
|
|
$
|
11
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||
|
Petroleum
|
|
Nitrogen Fertilizer
|
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Other / Eliminations
|
|
Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Major Product
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
$
|
896
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
896
|
|
Distillates (a)
|
832
|
|
|
—
|
|
|
—
|
|
|
832
|
|
||||
Ammonia
|
—
|
|
|
28
|
|
|
—
|
|
|
28
|
|
||||
UAN
|
—
|
|
|
51
|
|
|
—
|
|
|
51
|
|
||||
Urea products
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||
Freight revenue
|
6
|
|
|
7
|
|
|
—
|
|
|
13
|
|
||||
Other (b)
|
89
|
|
|
2
|
|
|
(3
|
)
|
|
88
|
|
||||
Revenue from product sales
|
1,823
|
|
|
93
|
|
|
(3
|
)
|
|
1,913
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other revenue (c)
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total revenue
|
$
|
1,824
|
|
|
$
|
93
|
|
|
$
|
(3
|
)
|
|
$
|
1,914
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
Petroleum
|
|
Nitrogen Fertilizer
|
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Other / Eliminations
|
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Consolidated
|
||||||||
|
(in millions)
|
||||||||||||||
Major Product
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
$
|
1,608
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,608
|
|
Distillates (a)
|
1,484
|
|
|
—
|
|
|
—
|
|
|
1,484
|
|
||||
Ammonia
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
||||
UAN
|
—
|
|
|
104
|
|
|
—
|
|
|
104
|
|
||||
Urea products
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
||||
Freight revenue
|
11
|
|
|
15
|
|
|
—
|
|
|
26
|
|
||||
Other (b)
|
176
|
|
|
4
|
|
|
(4
|
)
|
|
176
|
|
||||
Revenue from product sales
|
3,279
|
|
|
173
|
|
|
(4
|
)
|
|
3,448
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Other revenue (c)
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||
Total revenue
|
$
|
3,282
|
|
|
$
|
173
|
|
|
$
|
(4
|
)
|
|
$
|
3,451
|
|
|
(a)
|
Distillates consist primarily of diesel fuel, kerosene and jet fuel.
|
(b)
|
Other product sales primarily include crude oil, feedstocks and asphalt sales attributable to the petroleum segment and nitric acid and carbon dioxide sales attributable to the nitrogen fertilizer segment. Feedstocks are petroleum products, such as crude oil and natural gas liquids, that are processed and blended into refined products, such as gasoline, diesel fuel and jet fuel, during the refining process.
|
(c)
|
Other revenue consists primarily of Cushing, OK storage tank lease revenue.
|
|
|
Six Months Ended June 30,
|
||
|
|
(in millions)
|
||
Balance at January 1, 2018
|
|
$
|
34
|
|
Add:
|
|
|
||
New prepay contracts entered into during the period
|
|
14
|
|
|
Less:
|
|
|
||
Revenue recognized that was included in the contract liability balance at the beginning of the period
|
|
32
|
|
|
Revenue recognized related to contracts entered into during the period
|
|
5
|
|
|
Other changes
|
|
—
|
|
|
Balance at June 30, 2018
|
|
$
|
11
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
CVR Energy LTIP
|
|
|
|
|
|
|
|
||||||||
Performance Unit Award
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
CVR Partners LTIP
|
|
|
|
|
|
|
|
||||||||
Phantom Units Award
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
CVR Refining LTIP
|
|
|
|
|
|
|
|
||||||||
Phantom Units Award
|
6
|
|
|
1
|
|
|
7
|
|
|
2
|
|
||||
Incentive Unit Awards
|
3
|
|
|
1
|
|
|
2
|
|
|
3
|
|
||||
Total Share-Based Compensation Expense
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
12
|
|
|
$
|
7
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
Raw materials and precious metals
|
$
|
144
|
|
|
$
|
114
|
|
In-process inventories
|
29
|
|
|
22
|
|
||
Finished goods
|
185
|
|
|
172
|
|
||
Parts and supplies
|
75
|
|
|
77
|
|
||
Total Inventories
|
$
|
433
|
|
|
$
|
385
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
Land and improvements
|
$
|
44
|
|
|
$
|
48
|
|
Buildings
|
82
|
|
|
83
|
|
||
Machinery and equipment
|
3,750
|
|
|
3,734
|
|
||
Other
|
150
|
|
|
138
|
|
||
|
4,026
|
|
|
4,003
|
|
||
Less: Accumulated depreciation
|
1,532
|
|
|
1,431
|
|
||
Total property, plant and equipment, net
|
$
|
2,494
|
|
|
$
|
2,572
|
|
Debt Balance, Net of Current Maturities and Unamortized Issuance Costs
|
|||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
6.5% Senior Notes due 2022 (a)
|
$
|
500
|
|
|
$
|
500
|
|
9.25% Senior Secured Notes due 2023 (b)
|
645
|
|
|
645
|
|
||
6.5% Senior Notes due 2021 (b)
|
2
|
|
|
2
|
|
||
Capital lease obligations
|
44
|
|
|
45
|
|
||
Total long-term debt, before debt issuance costs, discount and current portion of capital lease obligations
|
1,191
|
|
|
1,192
|
|
||
Less:
|
|
|
|
||||
Unamortized debt issuance cost and debt discount
|
(24
|
)
|
|
(26
|
)
|
||
Current portion of capital lease obligations
|
(2
|
)
|
|
(2
|
)
|
||
Long-term debt, net of current portion
|
$
|
1,165
|
|
|
$
|
1,164
|
|
|
(a)
|
The estimated fair value of total long-term debt outstanding was approximately
$510 million
as of
June 30, 2018
.
|
(b)
|
The estimated fair value of total long-term debt outstanding was approximately
$667 million
as of
June 30, 2018
.
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Capacity
|
|
Amount Borrowed as of June 30, 2018
|
|
Outstanding Letters of Credit
|
|
Available Capacity as of June 30, 2018
|
|
Maturity Date
|
||||||||
|
|
||||||||||||||||
Amended and Restated Asset Based (ABL) Credit Facility (c)
|
$
|
400
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
394
|
|
|
November 14, 2022
|
Asset Based (ABL) Credit Facility (d)
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
September 30, 2021
|
|
(c)
|
Loans under the asset based credit facility initially bear interest at an annual rate equal to (i)
1.50%
plus LIBOR or (ii)
0.50%
plus a base rate, subject to quarterly excess availability.
|
(d)
|
Loans under the asset based credit facility initially bear interest at an annual rate equal to (i)
2.00%
plus LIBOR or (ii)
1.00%
plus a base rate, subject to a
0.50%
step-down based on the previous quarter's excess availability.
|
|
Six Months Ended
June 30, |
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Supplemental disclosures:
|
|
||||||
Cash paid for income taxes, net of refunds
|
$
|
8
|
|
|
$
|
10
|
|
Cash paid for interest
|
52
|
|
|
53
|
|
||
Non-cash investing and financing activities:
|
|
|
|
||||
Construction in progress additions included in accounts payable
|
$
|
8
|
|
|
$
|
9
|
|
Change in accounts payable related to construction in progress additions
|
—
|
|
|
(7
|
)
|
||
Landlord incentives for leasehold improvements
|
—
|
|
|
1
|
|
||
Dividend accrual
|
65
|
|
|
—
|
|
•
|
Level 1 — Quoted prices in active markets for identical assets or liabilities
|
•
|
Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities)
|
•
|
Level 3 — Significant unobservable inputs (including the Company's own assumptions in determining the fair value)
|
|
June 30, 2018
|
||||||||||||||
Location and Description
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Cash equivalents
|
$
|
50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
Other current assets (investments)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other current assets (commodity derivatives)
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Total Assets
|
$
|
50
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
51
|
|
Other current liabilities (commodity derivatives)
|
$
|
—
|
|
|
$
|
(27
|
)
|
|
$
|
—
|
|
|
$
|
(27
|
)
|
Other current liabilities (biofuel blending obligation)
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
$
|
—
|
|
|
$
|
(38
|
)
|
|
December 31, 2017
|
||||||||||||||
Location and Description
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Cash equivalents
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
Other current assets (investments)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total Assets
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
Other current liabilities (commodity derivatives)
|
$
|
—
|
|
|
$
|
(64
|
)
|
|
$
|
—
|
|
|
$
|
(64
|
)
|
Other long-term liabilities (biofuel blending obligation)
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
(65
|
)
|
|
$
|
—
|
|
|
$
|
(65
|
)
|
Gain (Loss) on Derivatives
|
|||||||||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Realized gain on commodity derivatives
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
1
|
|
Realized loss on margin account
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Total realized gain on derivatives, net
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
31
|
|
|
$
|
1
|
|
Fair Value of Commodity Derivatives
|
|||||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
Net unrealized gain (loss) on outstanding commodity derivative contracts
|
$
|
(26
|
)
|
|
$
|
(64
|
)
|
|
As of June 30, 2018
|
||||||||||||||||||
Description
|
Gross
Current Assets |
|
Gross
Amounts Offset |
|
Net
Current Assets Presented |
|
Cash
Collateral Not Offset |
|
Net
Amount |
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Derivatives
|
$
|
6
|
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
Total
|
$
|
6
|
|
|
$
|
(5
|
)
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of June 30, 2018
|
||||||||||||||||||
Description
|
Gross
Current Liabilities
|
|
Gross
Amounts
Offset
|
|
Net
Current Liabilities
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Derivatives
|
$
|
32
|
|
|
$
|
(5
|
)
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
27
|
|
Total
|
$
|
32
|
|
|
$
|
(5
|
)
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
As of December 31, 2017
|
||||||||||||||||||
Description
|
Gross
Current Assets |
|
Gross
Amounts Offset |
|
Net
Current Assets Presented |
|
Cash
Collateral Not Offset |
|
Net
Amount |
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Derivatives
|
$
|
7
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total
|
$
|
7
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As of December 31, 2017
|
||||||||||||||||||
Description
|
Gross
Current Liabilities
|
|
Gross
Amounts
Offset
|
|
Net
Current Liabilities
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Derivatives
|
$
|
71
|
|
|
$
|
(7
|
)
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
64
|
|
Total
|
$
|
71
|
|
|
$
|
(7
|
)
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
December 31, 2017
|
|
March 31, 2018
|
|
Total Dividends Paid in 2018
|
||||||
|
(in millions, except per unit data)
|
||||||||||
Amount paid to IEP
|
$
|
36
|
|
|
$
|
36
|
|
|
$
|
72
|
|
Amount paid to public stockholders
|
7
|
|
|
8
|
|
|
15
|
|
|||
Total amount paid
|
$
|
43
|
|
|
$
|
44
|
|
|
$
|
87
|
|
|
|
|
|
|
|
||||||
Per common share
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
$
|
1.00
|
|
Shares outstanding
|
86.8
|
|
|
86.8
|
|
|
|
Expenses from related parties
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Payments made
|
|
|
|
|
|
|
|
||||||||
Tax Allocation Agreement:
|
|
|
|
|
|
|
|
||||||||
American Entertainment Properties Corporation
|
$
|
8
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
10
|
|
Amounts due to/from related parties
|
|
|
|
||||
|
June 30, 2018
|
|
December 31, 2017
|
||||
|
(in millions)
|
||||||
Accounts Receivable (Payable)
|
|
|
|
||||
Tax Allocation Agreement:
|
|
|
|
||||
American Entertainment Properties Corporation ("AEPC")
|
$
|
(16
|
)
|
|
$
|
5
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
1,824
|
|
|
$
|
1,338
|
|
|
$
|
3,282
|
|
|
$
|
2,762
|
|
Nitrogen Fertilizer
|
93
|
|
|
98
|
|
|
173
|
|
|
183
|
|
||||
Other
|
(3
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Total
|
$
|
1,914
|
|
|
$
|
1,434
|
|
|
$
|
3,451
|
|
|
$
|
2,942
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
117
|
|
|
$
|
(7
|
)
|
|
$
|
214
|
|
|
$
|
59
|
|
Nitrogen Fertilizer
|
—
|
|
|
12
|
|
|
(4
|
)
|
|
18
|
|
||||
Other
|
(6
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(8
|
)
|
||||
Total operating income
|
111
|
|
|
1
|
|
|
201
|
|
|
69
|
|
||||
Interest expense, net
|
(27
|
)
|
|
(27
|
)
|
|
(53
|
)
|
|
(54
|
)
|
||||
Gain on derivatives, net
|
10
|
|
|
—
|
|
|
70
|
|
|
12
|
|
||||
Other income, net
|
2
|
|
|
—
|
|
|
3
|
|
|
0
|
|
||||
Earnings before income taxes
|
$
|
96
|
|
|
$
|
(26
|
)
|
|
$
|
221
|
|
|
$
|
27
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
33
|
|
|
$
|
32
|
|
|
$
|
67
|
|
|
$
|
66
|
|
Nitrogen Fertilizer
|
20
|
|
|
20
|
|
|
37
|
|
|
35
|
|
||||
Other
|
2
|
|
|
2
|
|
|
4
|
|
|
4
|
|
||||
Total
|
$
|
55
|
|
|
$
|
54
|
|
|
$
|
108
|
|
|
$
|
105
|
|
Capital expenditures
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
16
|
|
|
$
|
28
|
|
|
$
|
32
|
|
|
$
|
48
|
|
Nitrogen Fertilizer
|
6
|
|
|
4
|
|
|
9
|
|
|
9
|
|
||||
Other
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Total
|
$
|
22
|
|
|
$
|
33
|
|
|
$
|
42
|
|
|
$
|
58
|
|
|
As of June 30, 2018
|
|
As of December 31, 2017
|
||||
|
(in millions)
|
||||||
Total assets
|
|
|
|
||||
Petroleum
|
$
|
2,366
|
|
|
$
|
2,270
|
|
Nitrogen Fertilizer
|
1,200
|
|
|
1,234
|
|
||
Other
|
284
|
|
|
303
|
|
||
Total
|
$
|
3,850
|
|
|
$
|
3,807
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions, except per share data)
|
||||||||||||||
Consolidated Statements of Operations Data
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,914
|
|
|
$
|
1,434
|
|
|
$
|
3,451
|
|
|
$
|
2,942
|
|
Cost of materials and other
|
1,570
|
|
|
1,229
|
|
|
2,809
|
|
|
2,450
|
|
||||
Direct operating expenses(1)
|
141
|
|
|
124
|
|
|
273
|
|
|
262
|
|
||||
Depreciation and amortization
|
52
|
|
|
52
|
|
|
102
|
|
|
100
|
|
||||
Cost of sales
|
1,763
|
|
|
1,405
|
|
|
3,184
|
|
|
2,812
|
|
||||
Selling, general and administrative expenses(1)
|
32
|
|
|
25
|
|
|
55
|
|
|
55
|
|
||||
Depreciation and amortization
|
3
|
|
|
2
|
|
|
6
|
|
|
5
|
|
||||
Loss on asset disposals
|
5
|
|
|
1
|
|
|
5
|
|
|
1
|
|
||||
Operating income
|
111
|
|
|
1
|
|
|
201
|
|
|
69
|
|
||||
Interest expense, net
|
(27
|
)
|
|
(27
|
)
|
|
(53
|
)
|
|
(54
|
)
|
||||
Gain on derivatives, net
|
10
|
|
|
—
|
|
|
70
|
|
|
12
|
|
||||
Other income, net
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Income (loss) before income tax expense
|
96
|
|
|
(26
|
)
|
|
221
|
|
|
27
|
|
||||
Income tax expense (benefit)
|
17
|
|
|
(7
|
)
|
|
38
|
|
|
8
|
|
||||
Net income (loss)
|
79
|
|
|
(19
|
)
|
|
183
|
|
|
19
|
|
||||
Less: Net income (loss) attributable to noncontrolling interest
|
28
|
|
|
(8
|
)
|
|
66
|
|
|
7
|
|
||||
Net income (loss) attributable to CVR Energy stockholders
|
$
|
51
|
|
|
$
|
(11
|
)
|
|
$
|
117
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted earnings per share
|
$
|
0.59
|
|
|
$
|
(0.12
|
)
|
|
$
|
1.35
|
|
|
$
|
0.13
|
|
Dividends declared per share
|
$
|
0.75
|
|
|
$
|
0.50
|
|
|
$
|
1.25
|
|
|
$
|
1.00
|
|
Adjusted EBITDA (2)
|
$
|
103
|
|
|
$
|
38
|
|
|
$
|
189
|
|
|
$
|
118
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic and diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Petroleum Segment Summary Financial Results
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,824
|
|
|
$
|
1,338
|
|
|
$
|
3,282
|
|
|
$
|
2,762
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of materials and other
|
1,553
|
|
|
1,208
|
|
|
2,771
|
|
|
2,409
|
|
||||
Direct operating expenses(1)
|
94
|
|
|
86
|
|
|
187
|
|
|
188
|
|
||||
Depreciation and amortization
|
32
|
|
|
31
|
|
|
65
|
|
|
65
|
|
||||
Cost of sales
|
1,679
|
|
|
1,325
|
|
|
3,023
|
|
|
2,662
|
|
||||
Selling, general and administrative expenses(1)
|
22
|
|
|
19
|
|
|
38
|
|
|
40
|
|
||||
Depreciation and amortization
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Loss on asset disposals
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Operating income (loss)
|
117
|
|
|
(7
|
)
|
|
214
|
|
|
59
|
|
||||
Interest expense, net
|
(11
|
)
|
|
(12
|
)
|
|
(22
|
)
|
|
(23
|
)
|
||||
Gain on derivatives, net
|
10
|
|
|
—
|
|
|
70
|
|
|
12
|
|
||||
Other income, net
|
2
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Net income (loss)
|
$
|
118
|
|
|
$
|
(19
|
)
|
|
$
|
265
|
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
||||||||
Gross profit
|
$
|
145
|
|
|
$
|
13
|
|
|
$
|
259
|
|
|
$
|
100
|
|
Refining margin(2)
|
$
|
271
|
|
|
$
|
130
|
|
|
$
|
511
|
|
|
$
|
353
|
|
Adjusted Petroleum EBITDA(2)
|
$
|
147
|
|
|
$
|
43
|
|
|
$
|
273
|
|
|
$
|
158
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(dollars per barrel)
|
||||||||||||||
Key Operating Statistics (per total throughput barrel)
|
|
|
|
|
|
|
|
||||||||
Gross profit
|
$
|
7.29
|
|
|
$
|
0.60
|
|
|
$
|
7.05
|
|
|
$
|
2.43
|
|
Refining margin (2)
|
$
|
13.71
|
|
|
$
|
6.45
|
|
|
$
|
13.93
|
|
|
$
|
8.64
|
|
FIFO impact, (favorable) unfavorable
|
(1.10
|
)
|
|
0.76
|
|
|
(1.15
|
)
|
|
0.39
|
|
||||
Refining margin adjusted for FIFO impact (2)
|
12.61
|
|
|
7.21
|
|
|
12.78
|
|
|
9.03
|
|
||||
Direct operating expenses(1)
|
4.76
|
|
|
4.27
|
|
|
5.10
|
|
|
4.62
|
|
||||
Direct operating expenses excluding major turnaround expenses(1)(2)
|
4.76
|
|
|
4.13
|
|
|
5.10
|
|
|
4.23
|
|
|
(1)
|
Amounts are shown exclusive of depreciation and amortization.
|
(2)
|
See "Non-GAAP Reconciliations" section below for further information regarding these non-GAAP measures.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Market Indicators (dollars per barrel)
|
|
|
|
|
|
|
|
||||||||
West Texas Intermediate (WTI) NYMEX
|
$
|
67.91
|
|
|
$
|
48.15
|
|
|
$
|
65.46
|
|
|
$
|
49.95
|
|
Crude Oil Differentials:
|
|
|
|
|
|
|
|
||||||||
WTI less WTS (light/medium sour)
|
8.50
|
|
|
1.06
|
|
|
5.05
|
|
|
1.24
|
|
||||
WTI less WCS (heavy sour)
|
18.02
|
|
|
10.00
|
|
|
21.81
|
|
|
11.88
|
|
||||
WTI less Condensate
|
0.46
|
|
|
0.15
|
|
|
0.42
|
|
|
0.12
|
|
||||
Midland Cushing Differential
|
8.12
|
|
|
0.83
|
|
|
4.34
|
|
|
0.41
|
|
||||
NYMEX Crack Spreads:
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
20.63
|
|
|
18.07
|
|
|
18.06
|
|
|
16.39
|
|
||||
Heating Oil
|
22.22
|
|
|
15.11
|
|
|
21.36
|
|
|
15.32
|
|
||||
NYMEX 2-1-1 Crack Spread
|
21.43
|
|
|
16.59
|
|
|
19.71
|
|
|
15.85
|
|
||||
PADD II Group 3 Basis:
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
(4.44
|
)
|
|
(3.95
|
)
|
|
(3.19
|
)
|
|
(2.96
|
)
|
||||
Ultra Low Sulfur Diesel
|
(0.05
|
)
|
|
(0.62
|
)
|
|
(0.33
|
)
|
|
(1.10
|
)
|
||||
PADD II Group 3 Product Crack Spread:
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
16.19
|
|
|
14.12
|
|
|
14.87
|
|
|
13.42
|
|
||||
Ultra Low Sulfur Diesel
|
22.17
|
|
|
14.49
|
|
|
21.03
|
|
|
14.23
|
|
||||
PADD II Group 3 2-1-1
|
19.18
|
|
|
14.30
|
|
|
17.95
|
|
|
13.82
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
||||
Total Refining Throughput and Production Data (bpd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Condensate
|
9,127
|
|
|
4.2
|
|
1,258
|
|
|
0.6
|
|
15,560
|
|
|
7.7
|
|
4,363
|
|
|
1.9
|
Sweet
|
190,595
|
|
|
88.0
|
|
200,812
|
|
|
90.4
|
|
172,969
|
|
|
85.4
|
|
195,610
|
|
|
86.9
|
Heavy sour
|
6,249
|
|
|
2.9
|
|
11,771
|
|
|
5.3
|
|
3,385
|
|
|
1.7
|
|
14,130
|
|
|
6.3
|
Total crude oil throughput
|
205,971
|
|
|
95.1
|
|
213,841
|
|
|
96.3
|
|
191,914
|
|
|
94.8
|
|
214,103
|
|
|
95.1
|
All other feedstocks and blendstocks
|
10,694
|
|
|
4.9
|
|
8,113
|
|
|
3.7
|
|
10,681
|
|
|
5.2
|
|
11,161
|
|
|
4.9
|
Total throughput
|
216,665
|
|
|
100.0
|
|
221,954
|
|
|
100.0
|
|
202,595
|
|
|
100.0
|
|
225,264
|
|
|
100.0
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gasoline
|
106,431
|
|
|
49.1
|
|
112,284
|
|
|
50.4
|
|
99,279
|
|
|
49.0
|
|
115,600
|
|
|
51.2
|
Distillate
|
94,784
|
|
|
43.7
|
|
96,578
|
|
|
43.4
|
|
86,870
|
|
|
42.9
|
|
93,260
|
|
|
41.3
|
Other (excluding internally produced fuel)
|
15,609
|
|
|
7.2
|
|
13,775
|
|
|
6.2
|
|
16,495
|
|
|
8.1
|
|
17,019
|
|
|
7.5
|
Total refining production (excluding internally produced fuel)
|
216,824
|
|
|
100.0
|
|
222,637
|
|
|
100.0
|
|
202,644
|
|
|
100.0
|
|
225,879
|
|
|
100.0
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
||||
Coffeyville Refinery Throughput and Production Data (bpd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Condensate
|
1,547
|
|
|
1.1
|
|
1,258
|
|
|
0.9
|
|
9,586
|
|
|
8.0
|
|
4,363
|
|
|
3.1
|
Sweet
|
120,975
|
|
|
89.3
|
|
120,790
|
|
|
86.4
|
|
100,863
|
|
|
84.2
|
|
113,804
|
|
|
80.9
|
Heavy sour
|
6,249
|
|
|
4.6
|
|
11,771
|
|
|
8.4
|
|
3,385
|
|
|
2.8
|
|
14,130
|
|
|
10.0
|
Total crude oil throughput
|
128,771
|
|
|
95.0
|
|
133,819
|
|
|
95.7
|
|
113,834
|
|
|
95.0
|
|
132,297
|
|
|
94.0
|
All other feedstocks and blendstocks
|
6,671
|
|
|
5.0
|
|
6,077
|
|
|
4.3
|
|
6,022
|
|
|
5.0
|
|
8,482
|
|
|
6.0
|
Total throughput
|
135,442
|
|
|
100.0
|
|
139,896
|
|
|
100.0
|
|
119,856
|
|
|
100.0
|
|
140,779
|
|
|
100.0
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gasoline
|
66,577
|
|
|
48.6
|
|
70,032
|
|
|
49.3
|
|
57,565
|
|
|
47.5
|
|
72,271
|
|
|
50.5
|
Distillate
|
59,797
|
|
|
43.7
|
|
59,703
|
|
|
42.1
|
|
52,064
|
|
|
42.9
|
|
59,573
|
|
|
41.6
|
Other (excluding internally produced fuel)
|
10,500
|
|
|
7.7
|
|
12,146
|
|
|
8.6
|
|
11,657
|
|
|
9.6
|
|
11,246
|
|
|
7.9
|
Total refining production (excluding internally produced fuel)
|
136,874
|
|
|
100.0
|
|
141,881
|
|
|
100.0
|
|
121,286
|
|
|
100.0
|
|
143,090
|
|
|
100.0
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
||||
Wynnewood Refinery Throughput and Production Data (bpd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Condensate
|
7,580
|
|
|
9.3
|
|
—
|
|
|
—
|
|
5,974
|
|
|
7.2
|
|
—
|
|
|
—
|
Sweet
|
69,620
|
|
|
85.7
|
|
80,022
|
|
|
97.5
|
|
72,106
|
|
|
87.1
|
|
81,806
|
|
|
96.8
|
Total crude oil throughput
|
77,200
|
|
|
95.0
|
|
80,022
|
|
|
97.5
|
|
78,080
|
|
|
94.3
|
|
81,806
|
|
|
96.8
|
All other feedstocks and blendstocks
|
4,023
|
|
|
5.0
|
|
2,036
|
|
|
2.5
|
|
4,659
|
|
|
5.7
|
|
2,679
|
|
|
3.2
|
Total throughput
|
81,223
|
|
|
100.0
|
|
82,058
|
|
|
100.0
|
|
82,739
|
|
|
100.0
|
|
84,485
|
|
|
100.0
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gasoline
|
39,854
|
|
|
49.8
|
|
42,252
|
|
|
52.3
|
|
41,714
|
|
|
51.3
|
|
43,329
|
|
|
52.3
|
Distillate
|
34,987
|
|
|
43.8
|
|
36,875
|
|
|
45.7
|
|
34,806
|
|
|
42.8
|
|
33,687
|
|
|
40.7
|
Other (excluding internally produced fuel)
|
5,109
|
|
|
6.4
|
|
1,629
|
|
|
2.0
|
|
4,838
|
|
|
5.9
|
|
5,773
|
|
|
7.0
|
Total refining production (excluding internally produced fuel)
|
79,950
|
|
|
100.0
|
|
80,756
|
|
|
100.0
|
|
81,358
|
|
|
100.0
|
|
82,789
|
|
|
100.0
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Nitrogen Fertilizer Business Financial Results
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
93
|
|
|
$
|
98
|
|
|
$
|
173
|
|
|
$
|
183
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of materials and other
|
19
|
|
|
22
|
|
|
42
|
|
|
44
|
|
||||
Direct operating expenses(1)
|
47
|
|
|
38
|
|
|
86
|
|
|
74
|
|
||||
Depreciation and amortization
|
20
|
|
|
20
|
|
|
37
|
|
|
35
|
|
||||
Cost of sales
|
86
|
|
|
80
|
|
|
165
|
|
|
153
|
|
||||
Selling, general and administrative(1)
|
7
|
|
|
6
|
|
|
12
|
|
|
12
|
|
||||
Operating income (loss)
|
—
|
|
|
12
|
|
|
(4
|
)
|
|
18
|
|
||||
Interest expense, net
|
(16
|
)
|
|
(16
|
)
|
|
(32
|
)
|
|
(32
|
)
|
||||
Net loss
|
$
|
(16
|
)
|
|
$
|
(4
|
)
|
|
$
|
(36
|
)
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Nitrogen Fertilizer EBITDA(2)
|
$
|
26
|
|
|
$
|
32
|
|
|
$
|
39
|
|
|
$
|
53
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Nitrogen Fertilizer Segment Key Operating Statistics:
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Sales (thousand tons):
|
|
|
|
|
|
|
|
||||||||
Ammonia
|
81.6
|
|
|
74.6
|
|
|
117.6
|
|
|
136.5
|
|
||||
UAN
|
269.6
|
|
|
330.9
|
|
|
615
|
|
|
652.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Product pricing at gate (dollars per ton)(1):
|
|
|
|
|
|
|
|
||||||||
Ammonia
|
$
|
348
|
|
|
$
|
333
|
|
|
$
|
340
|
|
|
$
|
322
|
|
UAN
|
$
|
191
|
|
|
$
|
174
|
|
|
$
|
169
|
|
|
$
|
167
|
|
|
|
|
|
|
|
|
|
||||||||
Production volume (thousand tons):
|
|
|
|
|
|
|
|
||||||||
Ammonia (gross produced)(2)
|
173.7
|
|
|
215.3
|
|
|
372.8
|
|
|
434.5
|
|
||||
Ammonia (net available for sale)(2)
|
65.5
|
|
|
77.5
|
|
|
124.4
|
|
|
157.5
|
|
||||
UAN
|
240.9
|
|
|
313.8
|
|
|
580.2
|
|
|
655.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Feedstock:
|
|
|
|
|
|
|
|
||||||||
Petroleum coke used in production (thousand tons)
|
89.8
|
|
|
124.0
|
|
|
208.0
|
|
|
256.6
|
|
||||
Petroleum coke used in production (dollars per ton)
|
$
|
25
|
|
|
$
|
21
|
|
|
$
|
21
|
|
|
$
|
17
|
|
Natural gas used in production (thousands of MMBtu)(3)(4)
|
1,964.1
|
|
|
2,134.0
|
|
|
3,814.4
|
|
|
4,225.3
|
|
||||
Natural gas used in production (dollars per MMBtu)(3)(4)
|
$
|
2.78
|
|
|
$
|
3.18
|
|
|
$
|
3
|
|
|
$
|
3.29
|
|
Natural gas in cost of materials and other (thousands of MMBtu)(3)(4)
|
2,571.4
|
|
|
2,487.4
|
|
|
3,829.1
|
|
|
3,963.4
|
|
||||
Natural gas in cost of materials and other (dollars per MMBtu)(3)(4)
|
$
|
2.84
|
|
|
$
|
3.24
|
|
|
$
|
3.05
|
|
|
$
|
3.37
|
|
|
|
|
|
|
|
|
|
||||||||
Coffeyville Fertilizer Facility on-stream factors(5):
|
|
|
|
|
|
|
|
||||||||
Gasification
|
72.8
|
%
|
|
98.8
|
%
|
|
86.3
|
%
|
|
98.8
|
%
|
||||
Ammonia
|
70.2
|
%
|
|
98.2
|
%
|
|
84.9
|
%
|
|
98.3
|
%
|
||||
UAN
|
67.0
|
%
|
|
87.3
|
%
|
|
83.0
|
%
|
|
92.0
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
East Dubuque Facility on-stream factors(6):
|
|
|
|
|
|
|
|
||||||||
Ammonia
|
93.3
|
%
|
|
100.0
|
%
|
|
90.0
|
%
|
|
99.8
|
%
|
||||
UAN
|
93.6
|
%
|
|
99.4
|
%
|
|
90.3
|
%
|
|
98.8
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Market Indicators:
|
|
|
|
|
|
|
|
||||||||
Ammonia — Southern Plains (dollars per ton)
|
$
|
343
|
|
|
$
|
316
|
|
|
$
|
362
|
|
|
$
|
352
|
|
Ammonia — Corn belt (dollars per ton) (7)
|
$
|
396
|
|
|
$
|
365
|
|
|
$
|
412
|
|
|
$
|
395
|
|
UAN — Corn belt (dollars per ton) (7)
|
$
|
211
|
|
|
$
|
196
|
|
|
$
|
211
|
|
|
$
|
205
|
|
Natural gas NYMEX (dollars per MMBtu)
|
$
|
2.83
|
|
|
$
|
3.14
|
|
|
$
|
2.84
|
|
|
$
|
3.10
|
|
|
(1)
|
Product pricing at gate, also referred to as netback, 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 the 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)
|
The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expenses (exclusive of depreciation and amortization).
|
(4)
|
One million British thermal units ("MMBtu"): a measure of energy. One Btu of heat is required to raise the temperature of one pound of water one degree Fahrenheit.
|
(5)
|
On-stream factor is the total number of hours operated divided by the total number of hours in the reporting period and is included as a measure of operating efficiency.
|
(6)
|
The East Dubuque Facility is CVR Partners' nitrogen fertilizer manufacturing facility located in East Dubuque, Illinois.
|
(7)
|
The primary corn producing region of the United States, which includes Illinois, Indiana, Iowa, Minnesota, Missouri, Nebraska, Ohio and Wisconsin ("corn belt").
|
|
|
Price
Variance
|
|
Volume
Variance
|
||||
|
|
|
|
|
||||
|
|
(in millions)
|
||||||
UAN
|
|
$
|
4
|
|
|
$
|
(12
|
)
|
Ammonia
|
|
$
|
1
|
|
|
$
|
2
|
|
|
Price
Variance
|
|
Volume
Variance
|
||||
|
|
|
|
||||
|
(in millions)
|
||||||
UAN
|
$
|
2
|
|
|
$
|
(7
|
)
|
Ammonia
|
$
|
2
|
|
|
$
|
(6
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Net income (loss) attributable to CVR Energy stockholders
|
$
|
51
|
|
|
$
|
(11
|
)
|
|
$
|
117
|
|
|
$
|
12
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
27
|
|
|
27
|
|
|
53
|
|
|
54
|
|
||||
Income tax expense (benefit)
|
17
|
|
|
(7
|
)
|
|
38
|
|
|
8
|
|
||||
Depreciation and amortization
|
55
|
|
|
54
|
|
|
108
|
|
|
105
|
|
||||
Adjustments attributable to noncontrolling interest
|
(39
|
)
|
|
(37
|
)
|
|
(76
|
)
|
|
(74
|
)
|
||||
EBITDA
|
111
|
|
|
26
|
|
|
240
|
|
|
105
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
FIFO impact, (favorable) unfavorable(a)
|
(22
|
)
|
|
15
|
|
|
(42
|
)
|
|
16
|
|
||||
Major turnaround expenses(b)
|
6
|
|
|
3
|
|
|
6
|
|
|
16
|
|
||||
Gain on derivatives, net
|
(10
|
)
|
|
—
|
|
|
(70
|
)
|
|
(12
|
)
|
||||
Current period settlement on derivative contracts(c)
|
17
|
|
|
—
|
|
|
31
|
|
|
1
|
|
||||
Adjustments attributable to noncontrolling interest
|
1
|
|
|
(6
|
)
|
|
24
|
|
|
(8
|
)
|
||||
Adjusted EBITDA
|
$
|
103
|
|
|
$
|
38
|
|
|
$
|
189
|
|
|
$
|
118
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Petroleum:
|
|
|
|
|
|
|
|
||||||||
Petroleum net income (loss)
|
$
|
118
|
|
|
$
|
(19
|
)
|
|
$
|
265
|
|
|
$
|
48
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
11
|
|
|
12
|
|
|
22
|
|
|
23
|
|
||||
Income tax expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Depreciation and amortization
|
33
|
|
|
32
|
|
|
67
|
|
|
66
|
|
||||
Petroleum EBITDA
|
162
|
|
|
25
|
|
|
354
|
|
|
137
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
FIFO impact, (favorable) unfavorable(a)
|
(22
|
)
|
|
15
|
|
|
(42
|
)
|
|
16
|
|
||||
Major turnaround expenses(b)
|
—
|
|
|
3
|
|
|
—
|
|
|
16
|
|
||||
Gain on derivatives, net
|
(10
|
)
|
|
—
|
|
|
(70
|
)
|
|
(12
|
)
|
||||
Current period settlements on derivative contracts(c)
|
17
|
|
|
—
|
|
|
31
|
|
|
1
|
|
||||
Adjusted Petroleum EBITDA
|
$
|
147
|
|
|
$
|
43
|
|
|
$
|
273
|
|
|
$
|
158
|
|
(a)
|
FIFO is the petroleum business' basis for determining inventory value under GAAP. 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. The FIFO impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the FIFO impact per total throughput barrel, we utilize the total dollar figures for the FIFO impact and divide by the number of total throughput barrels for the period.
|
(b)
|
Represents expense associated with major turnaround activities at the Wynnewood refinery during 2017.
|
(c)
|
Represents the portion of gain on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at the inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Net sales
|
$
|
1,824
|
|
|
$
|
1,338
|
|
|
$
|
3,282
|
|
|
$
|
2,762
|
|
Cost of materials and other
|
1,553
|
|
|
1,208
|
|
|
2,771
|
|
|
2,409
|
|
||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below)
|
94
|
|
|
86
|
|
|
187
|
|
|
188
|
|
||||
Depreciation and amortization
|
32
|
|
|
31
|
|
|
65
|
|
|
65
|
|
||||
Gross profit
|
145
|
|
|
13
|
|
|
259
|
|
|
100
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below)
|
94
|
|
|
86
|
|
|
187
|
|
|
188
|
|
||||
Depreciation and amortization
|
32
|
|
|
31
|
|
|
65
|
|
|
65
|
|
||||
Refining margin
|
271
|
|
|
130
|
|
|
511
|
|
|
353
|
|
||||
FIFO impact, (favorable) unfavorable
|
(22
|
)
|
|
15
|
|
|
(42
|
)
|
|
16
|
|
||||
Refining margin adjusted for FIFO impact
|
$
|
249
|
|
|
$
|
145
|
|
|
$
|
469
|
|
|
$
|
369
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Total throughput barrels per day
|
216,665
|
|
|
221,954
|
|
|
202,595
|
|
|
225,264
|
|
Days in the period
|
91
|
|
|
91
|
|
|
181
|
|
|
181
|
|
Total throughput barrels
|
19,716,515
|
|
|
20,197,814
|
|
|
36,669,695
|
|
|
40,772,784
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Refining margin
|
$
|
271
|
|
|
$
|
130
|
|
|
$
|
511
|
|
|
$
|
353
|
|
Divided by: total throughput barrels
|
20
|
|
|
20
|
|
|
37
|
|
|
41
|
|
||||
Refining margin per total throughput barrel
|
$
|
13.71
|
|
|
$
|
6.45
|
|
|
$
|
13.93
|
|
|
$
|
8.64
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Refining margin adjusted for FIFO impact
|
$
|
249
|
|
|
$
|
145
|
|
|
$
|
469
|
|
|
$
|
369
|
|
Divided by: total throughput barrels
|
20
|
|
|
20
|
|
|
37
|
|
|
41
|
|
||||
Refining margin adjusted for FIFO impact per total throughput barrel
|
$
|
12.61
|
|
|
$
|
7.21
|
|
|
$
|
12.78
|
|
|
$
|
9.03
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions, except for $ per barrel data)
|
||||||||||||||
Direct operating expenses (exclusive of depreciation and amortization)
|
$
|
94
|
|
|
$
|
86
|
|
|
$
|
187
|
|
|
$
|
188
|
|
Major turnaround expenses
|
—
|
|
|
3
|
|
|
—
|
|
|
16
|
|
||||
Direct operating expenses (1)
|
94
|
|
|
83
|
|
|
187
|
|
|
172
|
|
||||
Divided by: total throughput barrels
|
20
|
|
|
20
|
|
|
37
|
|
|
41
|
|
||||
Direct operating expenses, excluding major turnaround expenses, per total throughput barrel
|
$
|
4.76
|
|
|
$
|
4.13
|
|
|
$
|
5.10
|
|
|
$
|
4.23
|
|
|
(1)
|
Direct operating expenses are shown exclusive of depreciation and amortization and major turnaround expenses.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Nitrogen Fertilizer:
|
|
|
|
|
|
|
|
||||||||
Nitrogen fertilizer net loss
|
$
|
(16
|
)
|
|
$
|
(4
|
)
|
|
$
|
(36
|
)
|
|
$
|
(14
|
)
|
Add:
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
16
|
|
|
16
|
|
|
32
|
|
|
32
|
|
||||
Depreciation and amortization
|
20
|
|
|
20
|
|
|
37
|
|
|
35
|
|
||||
Nitrogen Fertilizer EBITDA and Adjusted EBITDA
|
20
|
|
|
32
|
|
|
33
|
|
|
53
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
Major turnaround expenses
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Adjusted Nitrogen Fertilizer EBITDA
|
$
|
26
|
|
|
$
|
32
|
|
|
$
|
39
|
|
|
$
|
53
|
|
|
Six Months Ended June 30, 2018
|
|
2018 Estimate
|
||||||||||||||||||||
|
Growth
|
|
Maintenance
|
|
Total
|
|
Growth
|
|
Maintenance
|
|
Total
|
||||||||||||
|
(in millions)
|
||||||||||||||||||||||
CVR Refining
|
$
|
9
|
|
|
$
|
23
|
|
|
$
|
32
|
|
|
$
|
20
|
|
|
$
|
110
|
|
|
$
|
130
|
|
CVR Partners
|
2
|
|
|
7
|
|
|
9
|
|
|
3
|
|
|
18
|
|
|
21
|
|
||||||
Other
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
9
|
|
|
9
|
|
||||||
Total
|
$
|
11
|
|
|
$
|
31
|
|
|
$
|
42
|
|
|
$
|
23
|
|
|
$
|
137
|
|
|
$
|
160
|
|
|
Six Months Ended
June 30, |
||||||
|
2018
|
|
2017
|
||||
|
(unaudited)
|
||||||
|
(in millions)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
229
|
|
|
$
|
242
|
|
Investing activities
|
(41
|
)
|
|
(59
|
)
|
||
Financing activities
|
(136
|
)
|
|
(89
|
)
|
||
Net increase in cash and cash equivalents
|
$
|
52
|
|
|
$
|
94
|
|
•
|
statements, other than statements of historical fact, that address activities, events or developments that we expect, believe or anticipate will or may occur in the future;
|
•
|
statements relating to future financial or operational performance, future dividends, future capital sources and capital expenditures; and
|
•
|
any other statements preceded by, followed by or that include the words "anticipates," "believes," "expects," "plans," "intends," "estimates," "projects," "could," "should," "may" or similar expressions.
|
•
|
volatile margins in the refining industry and exposure to the risks associated with volatile crude oil prices;
|
•
|
the availability of adequate cash and other sources of liquidity for the capital needs of our businesses;
|
•
|
the ability to forecast future financial condition or results of operations and future revenues and expenses of our businesses;
|
•
|
the effects of transactions involving forward and derivative instruments;
|
•
|
disruption of the petroleum business' ability to obtain an adequate supply of crude oil;
|
•
|
changes in laws, regulations and policies with respect to the export of crude oil or other hydrocarbons;
|
•
|
interruption of the pipelines supplying feedstock and in the distribution of the petroleum business' products;
|
•
|
competition in the petroleum and nitrogen fertilizer businesses;
|
•
|
capital expenditures and potential liabilities arising from environmental laws and regulations;
|
•
|
changes in ours or CVR Refining's or CVR Partners' credit profile;
|
•
|
the cyclical nature of the nitrogen fertilizer business;
|
•
|
the seasonal nature of the petroleum business;
|
•
|
the supply and price levels of essential raw materials of our businesses;
|
•
|
the risk of a material decline in production at our refineries and nitrogen fertilizer plants;
|
•
|
potential operating hazards from accidents, fire, severe weather, tornadoes, floods or other natural disasters;
|
•
|
the risk associated with governmental policies affecting the agricultural industry;
|
•
|
the volatile nature of ammonia, potential liability for accidents involving ammonia that cause interruption to the nitrogen fertilizer business, severe damage to property and/or injury to the environment and human health and potential increased costs relating to the transport of ammonia;
|
•
|
the dependence of the nitrogen fertilizer business on a few third-party suppliers, including providers of transportation services and equipment;
|
•
|
new regulations concerning the transportation of hazardous chemicals, risks of terrorism, and the security of chemical manufacturing facilities and other matters beyond our control;
|
•
|
the risk of security breaches;
|
•
|
the petroleum business' and the nitrogen fertilizer business' dependence on significant customers and the creditworthiness and performance by counterparties;
|
•
|
the potential loss of the nitrogen fertilizer business' transportation cost advantage over its competitors;
|
•
|
the potential inability to successfully implement our business strategies, including the completion of significant capital programs;
|
•
|
our ability to continue to license the technology used in the petroleum business and nitrogen fertilizer business operations;
|
•
|
our petroleum business' ability to purchase RINs on a timely and cost effective basis;
|
•
|
our petroleum business' continued ability to secure environmental and other governmental permits necessary for the operation of its business;
|
•
|
existing and proposed laws, rulings and regulations, including those relating to climate change, alternative energy or fuel sources, and existing and future regulations related to the end-use and application of fertilizers;
|
•
|
refinery and nitrogen fertilizer facilities' operating hazards and interruptions, including unscheduled maintenance or downtime, and the availability of adequate insurance coverage;
|
•
|
instability and volatility in the capital and credit markets; and
|
•
|
potential exposure to underfunded pension obligations of affiliates as a member of the controlled group of Mr. Icahn.
|
Exhibit Number
|
|
Exhibit Description
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
101*
|
|
The following financial information for CVR Energy, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018
formatted in XBRL ("Extensible Business Reporting Language") includes: (i) Condensed Consolidated Balance Sheets (unaudited), (ii) Condensed Consolidated Statements of Operations (unaudited), (iii) Condensed Consolidated Statements of Comprehensive Income (unaudited), (iv) Condensed Consolidated Statement of Changes in Equity (unaudited), (v) Condensed Consolidated Statements of Cash Flows (unaudited) and (vi) the Notes to Condensed Consolidated Financial Statements (unaudited), tagged in detail.
|
|
*
|
Filed herewith.
|
**
|
Previously filed.
|
†
|
Furnished herewith.
|
July 26, 2018
|
|
By:
|
/s/ TRACY D. JACKSON
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
July 26, 2018
|
|
By:
|
/s/ MATTHEW W. BLEY
|
|
|
|
|
Chief Accounting Officer and Corporate Controller
|
|
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
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