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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, 2014
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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
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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
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if smaller reporting company.)
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Page No.
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June 30, 2014
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December 31, 2013
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||||
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(unaudited)
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||||
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(in millions, except share data)
|
||||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
998.7
|
|
|
$
|
842.1
|
|
Accounts receivable, net of allowance for doubtful accounts of $0.5 and $0.9, respectively
|
248.9
|
|
|
241.9
|
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||
Inventories
|
528.7
|
|
|
526.6
|
|
||
Prepaid expenses and other current assets
|
222.9
|
|
|
82.5
|
|
||
Income tax receivable
|
—
|
|
|
10.8
|
|
||
Deferred income taxes
|
12.6
|
|
|
27.8
|
|
||
Total current assets
|
2,011.8
|
|
|
1,731.7
|
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||
Property, plant, and equipment, net of accumulated depreciation
|
1,894.2
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|
1,864.4
|
|
||
Intangible assets, net
|
0.2
|
|
|
0.3
|
|
||
Goodwill
|
41.0
|
|
|
41.0
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|
||
Deferred financing costs, net
|
9.8
|
|
|
11.2
|
|
||
Other long-term assets
|
22.5
|
|
|
17.2
|
|
||
Total assets
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$
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3,979.5
|
|
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$
|
3,665.8
|
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LIABILITIES AND EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Note payable and capital lease obligations
|
$
|
1.3
|
|
|
$
|
1.3
|
|
Accounts payable
|
397.4
|
|
|
377.9
|
|
||
Personnel accruals
|
43.7
|
|
|
45.8
|
|
||
Accrued taxes other than income taxes
|
29.3
|
|
|
31.5
|
|
||
Due to parent
|
28.0
|
|
|
0.1
|
|
||
Deferred revenue
|
0.4
|
|
|
0.7
|
|
||
Other current liabilities
|
55.5
|
|
|
44.2
|
|
||
Total current liabilities
|
555.6
|
|
|
501.5
|
|
||
Long-term liabilities:
|
|
|
|
||||
Long-term debt and capital lease obligations, net of current portion
|
674.2
|
|
|
674.9
|
|
||
Accrued environmental liabilities, net of current portion
|
1.1
|
|
|
1.2
|
|
||
Deferred income taxes
|
600.4
|
|
|
601.7
|
|
||
Other long-term liabilities
|
44.4
|
|
|
51.1
|
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||
Total long-term liabilities
|
1,320.1
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|
|
1,328.9
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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
|
0.9
|
|
|
0.9
|
|
||
Additional paid-in-capital
|
1,166.8
|
|
|
1,114.4
|
|
||
Retained earnings
|
155.9
|
|
|
76.2
|
|
||
Treasury stock, 98,610 shares at cost
|
(2.3
|
)
|
|
(2.3
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
(0.5
|
)
|
|
(0.6
|
)
|
||
Total CVR stockholders’ equity
|
1,320.8
|
|
|
1,188.6
|
|
||
Noncontrolling interest
|
783.0
|
|
|
646.8
|
|
||
Total equity
|
2,103.8
|
|
|
1,835.4
|
|
||
Total liabilities and equity
|
$
|
3,979.5
|
|
|
$
|
3,665.8
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(unaudited)
|
||||||||||||||
|
(in millions, except per share data)
|
||||||||||||||
Net sales
|
$
|
2,540.3
|
|
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$
|
2,220.3
|
|
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$
|
4,987.8
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$
|
4,572.7
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Operating costs and expenses:
|
|
|
|
|
|
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|
||||||||
Cost of product sold (exclusive of depreciation and amortization)
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2,189.0
|
|
|
1,785.4
|
|
|
4,265.9
|
|
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3,599.0
|
|
||||
Direct operating expenses (exclusive of depreciation and amortization)
|
120.1
|
|
|
108.3
|
|
|
243.5
|
|
|
216.8
|
|
||||
Selling, general and administrative expenses (exclusive of depreciation and amortization)
|
28.0
|
|
|
28.9
|
|
|
54.4
|
|
|
57.4
|
|
||||
Depreciation and amortization
|
38.6
|
|
|
35.0
|
|
|
75.9
|
|
|
69.2
|
|
||||
Total operating costs and expenses
|
2,375.7
|
|
|
1,957.6
|
|
|
4,639.7
|
|
|
3,942.4
|
|
||||
Operating income
|
164.6
|
|
|
262.7
|
|
|
348.1
|
|
|
630.3
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense and other financing costs
|
(9.3
|
)
|
|
(12.5
|
)
|
|
(19.4
|
)
|
|
(27.9
|
)
|
||||
Interest income
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
||||
Gain on derivatives, net
|
35.9
|
|
|
120.5
|
|
|
145.3
|
|
|
100.5
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.1
|
)
|
||||
Other income (expense), net
|
(2.2
|
)
|
|
0.2
|
|
|
(2.1
|
)
|
|
0.3
|
|
||||
Total other income
|
24.6
|
|
|
108.5
|
|
|
124.2
|
|
|
47.4
|
|
||||
Income before income taxes
|
189.2
|
|
|
371.2
|
|
|
472.3
|
|
|
677.7
|
|
||||
Income tax expense
|
45.2
|
|
|
99.5
|
|
|
114.6
|
|
|
193.3
|
|
||||
Net income
|
144.0
|
|
|
271.7
|
|
|
357.7
|
|
|
484.4
|
|
||||
Less: Net income attributable to noncontrolling interest
|
60.3
|
|
|
88.3
|
|
|
147.3
|
|
|
136.0
|
|
||||
Net income attributable to CVR Energy stockholders
|
$
|
83.7
|
|
|
$
|
183.4
|
|
|
$
|
210.4
|
|
|
$
|
348.4
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.96
|
|
|
$
|
2.11
|
|
|
$
|
2.42
|
|
|
$
|
4.01
|
|
Diluted earnings per share
|
$
|
0.96
|
|
|
$
|
2.11
|
|
|
$
|
2.42
|
|
|
$
|
4.01
|
|
Dividends declared per share
|
$
|
0.75
|
|
|
$
|
7.25
|
|
|
$
|
1.50
|
|
|
$
|
12.75
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
||||
Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(unaudited)
|
||||||||||||||
|
(in millions)
|
||||||||||||||
Net income
|
$
|
144.0
|
|
|
$
|
271.7
|
|
|
$
|
357.7
|
|
|
$
|
484.4
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Unrealized gain on available-for-sale securities, net of tax of $0, $0.9, $0 and $0.9
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
||||
Change in fair value of interest rate swap, net of tax of $0, $0.1, $(0.1) and $0.1
|
(0.1
|
)
|
|
0.1
|
|
|
(0.1
|
)
|
|
0.1
|
|
||||
Net loss reclassified into income on settlement of interest rate swap, net of tax of $0.1, $0.1, $0.1 and $0.2 (Note 12)
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
|
0.3
|
|
||||
Total other comprehensive income
|
0.1
|
|
|
1.7
|
|
|
0.3
|
|
|
1.8
|
|
||||
Comprehensive income
|
144.1
|
|
|
273.4
|
|
|
358.0
|
|
|
486.2
|
|
||||
Less: Comprehensive income attributable to noncontrolling interest
|
60.4
|
|
|
88.5
|
|
|
147.5
|
|
|
136.3
|
|
||||
Comprehensive income attributable to CVR Energy stockholders
|
$
|
83.7
|
|
|
$
|
184.9
|
|
|
$
|
210.5
|
|
|
$
|
349.9
|
|
|
Common Stockholders
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Shares
Issued
|
|
$0.01 Par
Value
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated Other
Comprehensive
Income (Loss)
|
|
Total CVR
Stockholders’
Equity
|
|
Noncontrolling
Interest
|
|
Total
Equity
|
|||||||||||||||||
|
(unaudited)
|
|||||||||||||||||||||||||||||||||
|
(in millions, except share data)
|
|||||||||||||||||||||||||||||||||
Balance at December 31, 2013
|
86,929,660
|
|
|
$
|
0.9
|
|
|
$
|
1,114.4
|
|
|
$
|
76.2
|
|
|
$
|
(2.3
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
1,188.6
|
|
|
$
|
646.8
|
|
|
$
|
1,835.4
|
|
June issuance of CVR Refining's common units to the public, net of $34.2 million tax impact
|
—
|
|
|
—
|
|
|
52.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52.3
|
|
|
77.2
|
|
|
129.5
|
|
||||||||
Dividends paid to CVR Energy stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(130.2
|
)
|
|
—
|
|
|
—
|
|
|
(130.2
|
)
|
|
—
|
|
|
(130.2
|
)
|
||||||||
Distributions from CVR Partners to public unitholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27.7
|
)
|
|
(27.7
|
)
|
||||||||
Distributions from CVR Refining to public unitholders
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61.2
|
)
|
|
(61.2
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
0.1
|
|
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
0.4
|
|
|
—
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
210.4
|
|
|
—
|
|
|
—
|
|
|
210.4
|
|
|
147.3
|
|
|
357.7
|
|
||||||||
Net gain on interest rate swaps, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
||||||||
Balance at June 30, 2014
|
86,929,660
|
|
|
$
|
0.9
|
|
|
$
|
1,166.8
|
|
|
$
|
155.9
|
|
|
$
|
(2.3
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
1,320.8
|
|
|
$
|
783.0
|
|
|
$
|
2,103.8
|
|
|
Six Months Ended
June 30, |
||||||
|
2014
|
|
2013
|
||||
|
(unaudited)
|
||||||
|
(in millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
357.7
|
|
|
$
|
484.4
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
75.9
|
|
|
69.2
|
|
||
Allowance for doubtful accounts
|
(0.4
|
)
|
|
0.6
|
|
||
Amortization of deferred financing costs
|
1.4
|
|
|
1.5
|
|
||
Deferred income taxes
|
(25.1
|
)
|
|
(101.2
|
)
|
||
Loss on disposition of assets
|
0.4
|
|
|
—
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
26.1
|
|
||
Share-based compensation
|
8.9
|
|
|
10.3
|
|
||
Gain on derivatives, net
|
(145.3
|
)
|
|
(100.5
|
)
|
||
Current period settlements on derivative contracts
|
55.0
|
|
|
(37.8
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(6.6
|
)
|
|
(67.1
|
)
|
||
Inventories
|
(2.1
|
)
|
|
(60.7
|
)
|
||
Prepaid expenses and other current assets
|
6.3
|
|
|
6.9
|
|
||
Insurance receivable
|
—
|
|
|
1.3
|
|
||
Other long-term assets
|
(0.9
|
)
|
|
(0.2
|
)
|
||
Accounts payable
|
28.6
|
|
|
(41.9
|
)
|
||
Due to parent
|
27.9
|
|
|
128.1
|
|
||
Accrued income tax
|
11.0
|
|
|
13.8
|
|
||
Deferred revenue
|
(0.3
|
)
|
|
0.5
|
|
||
Other current liabilities
|
13.1
|
|
|
47.9
|
|
||
Accrued environmental liabilities
|
(0.1
|
)
|
|
(0.2
|
)
|
||
Other long-term liabilities
|
0.1
|
|
|
—
|
|
||
Net cash provided by operating activities
|
405.5
|
|
|
381.0
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(114.9
|
)
|
|
(114.6
|
)
|
||
Proceeds from sale of assets
|
0.2
|
|
|
0.1
|
|
||
Purchase of available-for-sale securities
|
(78.3
|
)
|
|
(18.6
|
)
|
||
Net cash used in investing activities
|
(193.0
|
)
|
|
(133.1
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Payment of capital lease obligations
|
(0.7
|
)
|
|
(0.6
|
)
|
||
Payments on senior secured notes
|
—
|
|
|
(243.4
|
)
|
||
Payment of financing costs
|
—
|
|
|
(0.2
|
)
|
||
Proceeds from CVR Refining's initial public offering, net of offering costs
|
—
|
|
|
655.7
|
|
||
Proceeds from CVR Refining's May 2013 offering, net of offering costs
|
—
|
|
|
393.7
|
|
||
Proceeds from the sale of CVR Refining's common units to AEPC
|
—
|
|
|
61.5
|
|
||
Proceeds from CVR Refining's June 2014 offering, net of offering costs
|
163.9
|
|
|
—
|
|
||
Proceeds from CVR Partners' secondary offering, net of offering costs
|
—
|
|
|
292.6
|
|
||
Redemption of common units
|
—
|
|
|
(0.2
|
)
|
||
Dividends to CVR Energy's stockholders
|
(130.2
|
)
|
|
(1,107.1
|
)
|
||
Distributions to CVR Refining's noncontrolling interest holders
|
(61.2
|
)
|
|
(43.6
|
)
|
||
Distributions to CVR Partners' noncontrolling interest holders
|
(27.7
|
)
|
|
(17.8
|
)
|
||
Net cash used in financing activities
|
(55.9
|
)
|
|
(9.4
|
)
|
||
Net increase in cash and cash equivalents
|
156.6
|
|
|
238.5
|
|
||
Cash and cash equivalents, beginning of period
|
842.1
|
|
|
896.0
|
|
||
Cash and cash equivalents, end of period
|
$
|
998.7
|
|
|
$
|
1,134.5
|
|
|
Six Months Ended
June 30, |
||||||
|
2014
|
|
2013
|
||||
|
(unaudited)
|
||||||
|
(in millions)
|
||||||
Supplemental disclosures:
|
|
||||||
Cash paid for income taxes, net of refunds
|
$
|
100.7
|
|
|
$
|
152.6
|
|
Cash paid for interest net of capitalized interest of $5.2 and $1.2 in 2014 and 2013, respectively
|
$
|
17.9
|
|
|
$
|
33.2
|
|
Non-cash investing and financing activities:
|
|
|
|
||||
Construction in process additions included in accounts payable
|
$
|
23.5
|
|
|
$
|
38.1
|
|
Change in accounts payable related to construction in process additions
|
$
|
(9.3
|
)
|
|
$
|
(18.1
|
)
|
|
Shares
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Non-vested at January 1, 2014
|
359,552
|
|
|
$
|
28.09
|
|
Granted
|
—
|
|
|
—
|
|
|
Vested
|
(38,867
|
)
|
|
20.26
|
|
|
Forfeited
|
(23,622
|
)
|
|
37.19
|
|
|
Non-vested at June 30, 2014
|
297,063
|
|
|
$
|
28.39
|
|
|
Units
|
|
Weighted‑Average
Grant-Date
Fair Value
|
|||
Non-vested at January 1, 2014
|
171,119
|
|
|
$
|
21.34
|
|
Granted
|
5,093
|
|
|
18.86
|
|
|
Vested
|
(814
|
)
|
|
21.05
|
|
|
Forfeited
|
(64,629
|
)
|
|
23.36
|
|
|
Non-vested at June 30, 2014
|
110,769
|
|
|
$
|
20.06
|
|
|
Units
|
|
Weighted-Average Grant-Date
Fair Value
|
|||
Non-vested at January 1, 2014
|
187,177
|
|
|
$
|
21.55
|
|
Granted
|
—
|
|
|
—
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
(4,176
|
)
|
|
21.55
|
|
|
Non-vested at June 30, 2014
|
183,001
|
|
|
$
|
21.55
|
|
|
Incentive Units
|
|
Weighted-Average Grant-Date
Fair Value
|
|||
Non-vested at January 1, 2014
|
251,431
|
|
|
$
|
22.62
|
|
Granted
|
4,320
|
|
|
23.02
|
|
|
Vested
|
—
|
|
|
—
|
|
|
Forfeited
|
(43,568
|
)
|
|
22.62
|
|
|
Non-vested at June 30, 2014
|
212,183
|
|
|
$
|
22.63
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
(in millions)
|
||||||
Finished goods
|
$
|
289.4
|
|
|
$
|
268.2
|
|
Raw materials and precious metals
|
152.5
|
|
|
177.0
|
|
||
In-process inventories
|
41.4
|
|
|
36.9
|
|
||
Parts and supplies
|
45.4
|
|
|
44.5
|
|
||
|
$
|
528.7
|
|
|
$
|
526.6
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
(in millions)
|
||||||
Land and improvements
|
$
|
36.7
|
|
|
$
|
36.1
|
|
Buildings
|
44.6
|
|
|
42.6
|
|
||
Machinery and equipment
|
2,341.4
|
|
|
2,312.5
|
|
||
Automotive equipment
|
20.0
|
|
|
19.2
|
|
||
Furniture and fixtures
|
19.3
|
|
|
18.3
|
|
||
Leasehold improvements
|
2.8
|
|
|
2.5
|
|
||
Aircraft
|
2.3
|
|
|
2.3
|
|
||
Railcars
|
7.9
|
|
|
7.9
|
|
||
Construction in progress
|
231.7
|
|
|
164.9
|
|
||
|
2,706.7
|
|
|
2,606.3
|
|
||
Accumulated depreciation
|
812.5
|
|
|
741.9
|
|
||
Total property, plant and equipment, net
|
$
|
1,894.2
|
|
|
$
|
1,864.4
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||
|
(in millions)
|
||||||
6.5% Senior Notes due 2022
|
$
|
500.0
|
|
|
$
|
500.0
|
|
CRNF credit facility
|
125.0
|
|
|
125.0
|
|
||
Capital lease obligations
|
49.2
|
|
|
49.9
|
|
||
Long-term debt
|
$
|
674.2
|
|
|
$
|
674.9
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions, except per share data)
|
||||||||||||||
Net income attributable to CVR Energy stockholders
|
$
|
83.7
|
|
|
$
|
183.4
|
|
|
$
|
210.4
|
|
|
$
|
348.4
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares of common stock outstanding - Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
||||
Weighted-average shares of common stock outstanding - Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.96
|
|
|
$
|
2.11
|
|
|
$
|
2.42
|
|
|
$
|
4.01
|
|
Diluted earnings per share
|
$
|
0.96
|
|
|
$
|
2.11
|
|
|
$
|
2.42
|
|
|
$
|
4.01
|
|
|
Operating
Leases
|
|
Unconditional
Purchase
Obligations
(1)
|
||||
|
(in millions)
|
||||||
Six Months Ending December 31, 2014
|
$
|
4.8
|
|
|
$
|
80.4
|
|
Year Ending December 31,
|
|
|
|
||||
2015
|
8.1
|
|
|
114.5
|
|
||
2016
|
6.7
|
|
|
103.8
|
|
||
2017
|
4.4
|
|
|
102.5
|
|
||
2018
|
3.2
|
|
|
102.6
|
|
||
Thereafter
|
5.3
|
|
|
889.0
|
|
||
|
$
|
32.5
|
|
|
$
|
1,392.8
|
|
|
(1)
|
This amount includes approximately
$944.3 million
payable ratably over
seventeen years
pursuant to petroleum transportation service agreements between Coffeyville Resources Refining & Marketing, LLC ("CRRM") and each of TransCanada Keystone Pipeline Limited Partnership and TransCanada Keystone Pipeline, LP (together, “TransCanada”). Under the agreements, CRRM receives transportation of at least
25,000
barrels per day of crude oil with a delivery point at Cushing, Oklahoma for a term of
twenty years
on TransCanada’s Keystone pipeline system.
|
•
|
Level 1 — Quoted prices in active markets for identical assets and 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, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Location and Description
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
81.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81.0
|
|
Other current assets (investments)
|
76.2
|
|
|
2.9
|
|
|
—
|
|
|
79.1
|
|
||||
Other current assets (other derivative agreements)
|
—
|
|
|
69.2
|
|
|
—
|
|
|
69.2
|
|
||||
Other long-term assets (other derivative agreements)
|
—
|
|
|
5.1
|
|
|
—
|
|
|
5.1
|
|
||||
Total Assets
|
$
|
157.2
|
|
|
$
|
77.2
|
|
|
$
|
—
|
|
|
$
|
234.4
|
|
Other current liabilities (interest rate swaps)
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||
Other current liabilities (biofuel blending obligations)
|
—
|
|
|
(30.3
|
)
|
|
—
|
|
|
(30.3
|
)
|
||||
Other long-term liabilities (interest rate swaps)
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
(0.6
|
)
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
(31.8
|
)
|
|
$
|
—
|
|
|
$
|
(31.8
|
)
|
|
December 31, 2013
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
Location and Description
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
81.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81.0
|
|
Other current assets (other derivative agreements)
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.9
|
|
||||
Other long-term assets (other derivative agreements)
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Total Assets
|
$
|
81.0
|
|
|
$
|
1.0
|
|
|
$
|
—
|
|
|
$
|
82.0
|
|
Other current liabilities (other derivative agreements)
|
—
|
|
|
(15.3
|
)
|
|
—
|
|
|
(15.3
|
)
|
||||
Other current liabilities (interest rate swaps)
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(0.9
|
)
|
||||
Other current liabilities (biofuel blending obligation)
|
—
|
|
|
(16.2
|
)
|
|
—
|
|
|
(16.2
|
)
|
||||
Other long-term liabilities (other derivative agreements)
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
(1.8
|
)
|
||||
Other long-term liabilities (interest rate swaps)
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
(1.0
|
)
|
||||
Total Liabilities
|
$
|
—
|
|
|
$
|
(35.2
|
)
|
|
$
|
—
|
|
|
$
|
(35.2
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Current period settlements on derivative contracts
|
$
|
33.9
|
|
|
$
|
14.7
|
|
|
$
|
55.0
|
|
|
$
|
(37.8
|
)
|
Gain (loss) on derivatives, net
|
35.9
|
|
|
120.5
|
|
|
145.3
|
|
|
100.5
|
|
|
As of June 30, 2014
|
||||||||||||||||||
Description
|
Gross
Current Assets
|
|
Gross
Amounts
Offset
|
|
Net
Current Assets
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Swaps
|
$
|
72.4
|
|
|
$
|
(3.2
|
)
|
|
$
|
69.2
|
|
|
$
|
—
|
|
|
$
|
69.2
|
|
Total
|
$
|
72.4
|
|
|
$
|
(3.2
|
)
|
|
$
|
69.2
|
|
|
$
|
—
|
|
|
$
|
69.2
|
|
|
As of June 30, 2014
|
||||||||||||||||||
Description
|
Gross
Non-Current Assets
|
|
Gross
Amounts
Offset
|
|
Net
Non-Current Assets
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Swaps
|
$
|
5.1
|
|
|
$
|
—
|
|
|
$
|
5.1
|
|
|
$
|
—
|
|
|
$
|
5.1
|
|
Total
|
$
|
5.1
|
|
|
$
|
—
|
|
|
$
|
5.1
|
|
|
$
|
—
|
|
|
$
|
5.1
|
|
|
As of December 31, 2013
|
||||||||||||||||||
Description
|
Gross
Current Assets
|
|
Gross
Amounts
Offset
|
|
Net
Current Assets
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Swaps
|
$
|
4.3
|
|
|
$
|
(3.4
|
)
|
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
0.9
|
|
Total
|
$
|
4.3
|
|
|
$
|
(3.4
|
)
|
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
0.9
|
|
|
As of December 31, 2013
|
||||||||||||||||||
Description
|
Gross
Non-Current Assets
|
|
Gross
Amounts
Offset
|
|
Net
Non-Current Assets
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Swaps
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
Total
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
As of December 31, 2013
|
||||||||||||||||||
Description
|
Gross
Current Liabilities
|
|
Gross
Amounts
Offset
|
|
Net
Current Liabilities
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Swaps
|
$
|
31.4
|
|
|
$
|
(16.1
|
)
|
|
$
|
15.3
|
|
|
$
|
—
|
|
|
$
|
15.3
|
|
Total
|
$
|
31.4
|
|
|
$
|
(16.1
|
)
|
|
$
|
15.3
|
|
|
$
|
—
|
|
|
$
|
15.3
|
|
|
As of December 31, 2013
|
||||||||||||||||||
Description
|
Gross
Non-Current Liabilities
|
|
Gross
Amounts
Offset
|
|
Net
Non-Current Liabilities
Presented
|
|
Cash
Collateral
Not Offset
|
|
Net
Amount
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Commodity Swaps
|
$
|
1.9
|
|
|
$
|
(0.1
|
)
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
Total
|
$
|
1.9
|
|
|
$
|
(0.1
|
)
|
|
$
|
1.8
|
|
|
$
|
—
|
|
|
$
|
1.8
|
|
|
December 31, 2013
|
|
March 31, 2014
|
|
Total Dividends
Paid in 2014
|
||||||
|
(in millions, except per share amounts)
|
||||||||||
Amount paid to IEP
|
$
|
53.4
|
|
|
$
|
53.4
|
|
|
$
|
106.8
|
|
Amounts paid to public stockholders
|
11.7
|
|
|
11.7
|
|
|
23.4
|
|
|||
Total amount paid
|
$
|
65.1
|
|
|
$
|
65.1
|
|
|
$
|
130.2
|
|
Per common share
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
1.50
|
|
Shares outstanding
|
86.8
|
|
|
86.8
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
2,466.3
|
|
|
$
|
2,138.1
|
|
|
$
|
4,841.7
|
|
|
$
|
4,412.1
|
|
Nitrogen Fertilizer
|
77.2
|
|
|
88.8
|
|
|
157.5
|
|
|
170.2
|
|
||||
Intersegment elimination
|
(3.2
|
)
|
|
(6.6
|
)
|
|
(11.4
|
)
|
|
(9.6
|
)
|
||||
Total
|
$
|
2,540.3
|
|
|
$
|
2,220.3
|
|
|
$
|
4,987.8
|
|
|
$
|
4,572.7
|
|
Cost of product sold (exclusive of depreciation and amortization)
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
2,172.6
|
|
|
$
|
1,776.6
|
|
|
$
|
4,236.0
|
|
|
$
|
3,582.3
|
|
Nitrogen Fertilizer
|
19.4
|
|
|
15.6
|
|
|
41.1
|
|
|
26.2
|
|
||||
Intersegment elimination
|
(3.0
|
)
|
|
(6.8
|
)
|
|
(11.2
|
)
|
|
(9.5
|
)
|
||||
Total
|
$
|
2,189.0
|
|
|
$
|
1,785.4
|
|
|
$
|
4,265.9
|
|
|
$
|
3,599.0
|
|
Direct operating expenses (exclusive of depreciation and amortization)
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
93.2
|
|
|
$
|
83.8
|
|
|
$
|
192.4
|
|
|
$
|
169.9
|
|
Nitrogen Fertilizer
|
26.9
|
|
|
24.4
|
|
|
51.1
|
|
|
47.0
|
|
||||
Other
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
||||
Total
|
$
|
120.1
|
|
|
$
|
108.3
|
|
|
$
|
243.5
|
|
|
$
|
216.8
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
30.7
|
|
|
$
|
28.4
|
|
|
$
|
60.2
|
|
|
$
|
56.4
|
|
Nitrogen Fertilizer
|
6.8
|
|
|
6.2
|
|
|
13.5
|
|
|
12.0
|
|
||||
Other
|
1.1
|
|
|
0.4
|
|
|
2.2
|
|
|
0.8
|
|
||||
Total
|
$
|
38.6
|
|
|
$
|
35.0
|
|
|
$
|
75.9
|
|
|
$
|
69.2
|
|
Operating income
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
151.9
|
|
|
$
|
229.1
|
|
|
$
|
316.5
|
|
|
$
|
564.7
|
|
Nitrogen Fertilizer
|
18.8
|
|
|
37.1
|
|
|
41.9
|
|
|
73.9
|
|
||||
Other
|
(6.1
|
)
|
|
(3.5
|
)
|
|
(10.3
|
)
|
|
(8.3
|
)
|
||||
Total
|
$
|
164.6
|
|
|
$
|
262.7
|
|
|
$
|
348.1
|
|
|
$
|
630.3
|
|
Capital expenditures
|
|
|
|
|
|
|
|
||||||||
Petroleum
|
$
|
47.4
|
|
|
$
|
35.5
|
|
|
$
|
105.3
|
|
|
$
|
80.1
|
|
Nitrogen fertilizer
|
4.1
|
|
|
13.8
|
|
|
7.5
|
|
|
31.9
|
|
||||
Other
|
1.5
|
|
|
1.6
|
|
|
2.1
|
|
|
2.6
|
|
||||
Total
|
$
|
53.0
|
|
|
$
|
50.9
|
|
|
$
|
114.9
|
|
|
$
|
114.6
|
|
|
As of June 30, 2014
|
|
As of December 31, 2013
|
||||
|
(in millions)
|
||||||
Total assets
|
|
|
|
||||
Petroleum
|
$
|
2,785.3
|
|
|
$
|
2,533.3
|
|
Nitrogen Fertilizer
|
575.2
|
|
|
593.5
|
|
||
Other
|
619.0
|
|
|
539.0
|
|
||
Total
|
$
|
3,979.5
|
|
|
$
|
3,665.8
|
|
Goodwill
|
|
|
|
||||
Petroleum
|
$
|
—
|
|
|
$
|
—
|
|
Nitrogen Fertilizer
|
41.0
|
|
|
41.0
|
|
||
Other
|
—
|
|
|
—
|
|
||
Total
|
$
|
41.0
|
|
|
$
|
41.0
|
|
•
|
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 performance, future capital sources and other matters; 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;
|
•
|
exposure to the risks associated with volatile crude oil prices;
|
•
|
the availability of adequate cash and other sources of liquidity for our capital needs;
|
•
|
our ability to forecast our future financial condition or results of operations and our future revenues and expenses;
|
•
|
the effects of transactions involving forward and derivative instruments;
|
•
|
disruption of our 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 our products;
|
•
|
competition in the petroleum and nitrogen fertilizer businesses;
|
•
|
capital expenditures and potential liabilities arising from environmental laws and regulations;
|
•
|
changes in our 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;
|
•
|
the risk of a material decline in production at our refineries and nitrogen fertilizer plant;
|
•
|
potential operating hazards from accidents, fire, severe weather, 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 our businesses, 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 operations 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;
|
•
|
our dependence on significant customers;
|
•
|
the potential loss of the nitrogen fertilizer business’ transportation cost advantage over its competitors;
|
•
|
our 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 our operations;
|
•
|
our petroleum business’ ability to purchase gasoline and diesel 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 our business;
|
•
|
existing and proposed environmental laws 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 facility 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.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Loss on extinguishment of debt (a)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26.1
|
|
Share-based compensation (b)
|
4.7
|
|
|
4.3
|
|
|
8.9
|
|
|
10.3
|
|
||||
Gain on derivatives, net
|
(35.9
|
)
|
|
(120.5
|
)
|
|
(145.3
|
)
|
|
(100.5
|
)
|
|
December 31,
2013
|
|
March 31,
2014
|
|
Total Cash
Distributions
Paid in 2014
|
||||||
|
($ in millions, except per common unit amounts)
|
||||||||||
Amount paid to CRLLC
|
$
|
16.7
|
|
|
$
|
14.8
|
|
|
$
|
31.5
|
|
Amounts paid to public unitholders
|
14.7
|
|
|
13.0
|
|
|
27.7
|
|
|||
Total amount paid
|
$
|
31.4
|
|
|
$
|
27.8
|
|
|
$
|
59.2
|
|
Per common unit
|
$
|
0.43
|
|
|
$
|
0.38
|
|
|
$
|
0.81
|
|
Common units outstanding
|
73.1
|
|
|
73.1
|
|
|
|
|
December 31, 2013
|
|
March 31, 2014
|
|
Total Cash
Distributions
Paid in 2014
|
||||||
|
($ in millions, except per common unit amounts)
|
||||||||||
Amount paid to CVR Refining Holdings, LLC
|
$
|
47.1
|
|
|
$
|
102.8
|
|
|
$
|
149.9
|
|
Amounts paid to public unitholders
|
19.3
|
|
|
41.9
|
|
|
61.2
|
|
|||
Total amount paid
|
$
|
66.4
|
|
|
$
|
144.7
|
|
|
$
|
211.1
|
|
Per common unit
|
$
|
0.45
|
|
|
$
|
0.98
|
|
|
$
|
1.43
|
|
Common units outstanding
|
147.6
|
|
|
147.6
|
|
|
|
|
December 31, 2013
|
|
March 31, 2014
|
|
Total Dividends
Paid in 2014
|
||||||
|
(in millions, except per share amounts)
|
||||||||||
Amount paid to IEP
|
$
|
53.4
|
|
|
$
|
53.4
|
|
|
$
|
106.8
|
|
Amounts paid to public stockholders
|
11.7
|
|
|
11.7
|
|
|
23.4
|
|
|||
Total amount paid
|
$
|
65.1
|
|
|
$
|
65.1
|
|
|
$
|
130.2
|
|
Per common share
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
$
|
1.50
|
|
Shares outstanding
|
86.8
|
|
|
86.8
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions, except per share amounts)
|
||||||||||||||
Consolidated Statement of Operations Data
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
2,540.3
|
|
|
$
|
2,220.3
|
|
|
$
|
4,987.8
|
|
|
$
|
4,572.7
|
|
Cost of product sold(1)
|
2,189.0
|
|
|
1,785.4
|
|
|
4,265.9
|
|
|
3,599.0
|
|
||||
Direct operating expenses(1)
|
120.1
|
|
|
108.3
|
|
|
243.5
|
|
|
216.8
|
|
||||
Selling, general and administrative expenses(1)
|
28.0
|
|
|
28.9
|
|
|
54.4
|
|
|
57.4
|
|
||||
Depreciation and amortization(1)
|
38.6
|
|
|
35.0
|
|
|
75.9
|
|
|
69.2
|
|
||||
Operating income
|
164.6
|
|
|
262.7
|
|
|
348.1
|
|
|
630.3
|
|
||||
Interest expense and other financing costs
|
(9.3
|
)
|
|
(12.5
|
)
|
|
(19.4
|
)
|
|
(27.9
|
)
|
||||
Interest income
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
|
0.6
|
|
||||
Gain on derivatives, net
|
35.9
|
|
|
120.5
|
|
|
145.3
|
|
|
100.5
|
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.1
|
)
|
||||
Other income (expense), net
|
(2.2
|
)
|
|
0.2
|
|
|
(2.1
|
)
|
|
0.3
|
|
||||
Income before income tax expense
|
189.2
|
|
|
371.2
|
|
|
472.3
|
|
|
677.7
|
|
||||
Income tax expense
|
45.2
|
|
|
99.5
|
|
|
114.6
|
|
|
193.3
|
|
||||
Net income
|
144.0
|
|
|
271.7
|
|
|
357.7
|
|
|
484.4
|
|
||||
Less: Net income attributable to noncontrolling interest
|
60.3
|
|
|
88.3
|
|
|
147.3
|
|
|
136.0
|
|
||||
Net income attributable to CVR Energy stockholders
|
$
|
83.7
|
|
|
$
|
183.4
|
|
|
$
|
210.4
|
|
|
$
|
348.4
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.96
|
|
|
$
|
2.11
|
|
|
$
|
2.42
|
|
|
$
|
4.01
|
|
Diluted earnings per share
|
$
|
0.96
|
|
|
$
|
2.11
|
|
|
$
|
2.42
|
|
|
$
|
4.01
|
|
Dividends declared per share
|
$
|
0.75
|
|
|
$
|
7.25
|
|
|
$
|
1.50
|
|
|
$
|
12.75
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA(2)
|
$
|
147.2
|
|
|
$
|
221.3
|
|
|
$
|
301.4
|
|
|
$
|
507.3
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
||||
Diluted
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
86.8
|
|
|
As of June 30, 2014
|
|
As of December 31, 2013
|
||||
|
|
|
(audited)
|
||||
|
(in millions)
|
||||||
Balance Sheet Data
|
|
|
|
||||
Cash and cash equivalents
|
$
|
998.7
|
|
|
$
|
842.1
|
|
Working capital
|
1,456.2
|
|
|
1,230.2
|
|
||
Total assets
|
3,979.5
|
|
|
3,665.8
|
|
||
Total debt, including current portion
|
675.5
|
|
|
676.2
|
|
||
Total CVR Energy stockholders’ equity
|
1,320.8
|
|
|
1,188.6
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Cash Flow Data
|
|
|
|
|
|
|
|
||||||||
Net cash flow provided by (used in):
|
|
|
|
|
|
|
|
||||||||
Operating activities
|
$
|
124.2
|
|
|
$
|
102.7
|
|
|
$
|
405.5
|
|
|
$
|
381.0
|
|
Investing activities
|
(131.1
|
)
|
|
(69.4
|
)
|
|
(193.0
|
)
|
|
(133.1
|
)
|
||||
Financing activities
|
43.5
|
|
|
60.4
|
|
|
(55.9
|
)
|
|
(9.4
|
)
|
||||
Net cash flow
|
$
|
36.6
|
|
|
$
|
93.7
|
|
|
$
|
156.6
|
|
|
$
|
238.5
|
|
Other Financial Data
|
|
|
|
|
|
|
|
||||||||
Capital expenditures for property, plant and equipment
|
$
|
53.0
|
|
|
$
|
50.9
|
|
|
$
|
114.5
|
|
|
$
|
114.6
|
|
|
(1)
|
Amounts are shown exclusive of depreciation and amortization.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Depreciation and amortization excluded from cost of product sold
|
$
|
1.5
|
|
|
$
|
1.3
|
|
|
$
|
3.0
|
|
|
$
|
2.4
|
|
Depreciation and amortization excluded from direct operating expenses
|
35.6
|
|
|
33.2
|
|
|
70.0
|
|
|
65.7
|
|
||||
Depreciation and amortization excluded from selling, general and administrative expenses
|
1.5
|
|
|
0.5
|
|
|
2.9
|
|
|
1.1
|
|
||||
Total depreciation and amortization
|
$
|
38.6
|
|
|
$
|
35.0
|
|
|
$
|
75.9
|
|
|
$
|
69.2
|
|
(2)
|
EBITDA and Adjusted EBITDA.
EBITDA represents net income before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for FIFO impacts (favorable) unfavorable, share-based compensation, major scheduled turnaround expenses, loss on disposition of fixed assets, (gain) loss on derivatives, net, current period settlements on derivative contracts and loss on extinguishment of debt. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income 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. Below is a reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA for the three and
six
months ended
June 30, 2014
and
2013
:
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Net income attributable to CVR Energy stockholders
|
$
|
83.7
|
|
|
$
|
183.4
|
|
|
$
|
210.4
|
|
|
$
|
348.4
|
|
Add:
|
|
|
|
|
|
|
|
||||||||
Interest expense and other financing costs, net of interest income
|
9.1
|
|
|
12.2
|
|
|
19.0
|
|
|
27.3
|
|
||||
Income tax expense
|
45.2
|
|
|
99.5
|
|
|
114.6
|
|
|
193.3
|
|
||||
Depreciation and amortization
|
38.6
|
|
|
35.0
|
|
|
75.9
|
|
|
69.2
|
|
||||
EBITDA adjustments included in noncontrolling interest
|
(15.1
|
)
|
|
(11.9
|
)
|
|
(30.2
|
)
|
|
(19.9
|
)
|
||||
EBITDA
|
161.5
|
|
|
318.2
|
|
|
389.7
|
|
|
618.3
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
FIFO impacts, (favorable) unfavorable
|
(24.3
|
)
|
|
(24.2
|
)
|
|
(45.9
|
)
|
|
(29.0
|
)
|
||||
Share-based compensation
|
4.7
|
|
|
4.3
|
|
|
8.9
|
|
|
10.3
|
|
||||
Gain on derivatives, net
|
(35.9
|
)
|
|
(120.5
|
)
|
|
(145.3
|
)
|
|
(100.5
|
)
|
||||
Current period settlement on derivative contracts(a)
|
33.9
|
|
|
14.7
|
|
|
55.0
|
|
|
(37.8
|
)
|
||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
26.1
|
|
||||
Adjustments included in noncontrolling interest
|
7.3
|
|
|
28.8
|
|
|
39.0
|
|
|
19.9
|
|
||||
Adjusted EBITDA
|
$
|
147.2
|
|
|
$
|
221.3
|
|
|
$
|
301.4
|
|
|
$
|
507.3
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Consolidated Petroleum Segment Summary Financial Results
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
2,466.3
|
|
|
$
|
2,138.1
|
|
|
$
|
4,841.7
|
|
|
$
|
4,412.1
|
|
Cost of product sold(1)
|
2,172.6
|
|
|
1,776.6
|
|
|
4,236.0
|
|
|
3,582.3
|
|
||||
Direct operating expenses(1)(2)
|
93.2
|
|
|
83.8
|
|
|
192.4
|
|
|
169.9
|
|
||||
Depreciation and amortization
|
30.7
|
|
|
28.4
|
|
|
60.2
|
|
|
56.4
|
|
||||
Gross profit(3)
|
$
|
169.8
|
|
|
$
|
249.3
|
|
|
$
|
353.1
|
|
|
$
|
603.5
|
|
Plus:
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses(1)
|
93.2
|
|
|
83.8
|
|
|
192.4
|
|
|
169.9
|
|
||||
Depreciation and amortization
|
30.7
|
|
|
28.4
|
|
|
60.2
|
|
|
56.4
|
|
||||
Refining margin(4)
|
$
|
293.7
|
|
|
$
|
361.5
|
|
|
$
|
605.7
|
|
|
$
|
829.8
|
|
Operating income
|
$
|
151.9
|
|
|
$
|
229.1
|
|
|
$
|
316.5
|
|
|
$
|
564.7
|
|
Adjusted Petroleum EBITDA(5)
|
$
|
192.9
|
|
|
$
|
250.6
|
|
|
$
|
387.0
|
|
|
$
|
560.5
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(dollars per barrel)
|
||||||||||||||
Key Operating Statistics
|
|
|
|
|
|
|
|
||||||||
Per crude oil throughput barrel:
|
|
|
|
|
|
|
|
||||||||
Refining margin(4)
|
$
|
15.22
|
|
|
$
|
20.56
|
|
|
$
|
16.17
|
|
|
$
|
23.63
|
|
Gross profit(3)
|
$
|
8.80
|
|
|
$
|
14.18
|
|
|
$
|
9.42
|
|
|
$
|
17.19
|
|
Direct operating expenses (exclusive of depreciation and amortization)(1)(2)
|
$
|
4.83
|
|
|
$
|
4.77
|
|
|
$
|
5.14
|
|
|
$
|
4.84
|
|
Direct operating expenses (exclusive of depreciation and amortization) per barrel sold(1)(6)
|
$
|
4.57
|
|
|
$
|
4.60
|
|
|
$
|
4.82
|
|
|
$
|
4.62
|
|
Barrels sold (barrels per day)(6)
|
224,295
|
|
|
200,314
|
|
|
220,760
|
|
|
203,079
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
||||||||
Refining Throughput and Production Data (bpd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Sweet
|
193,032
|
|
|
87.2
|
|
153,944
|
|
|
76.2
|
|
185,412
|
|
|
85.2
|
|
155,304
|
|
|
76.4
|
||||
Medium
|
1
|
|
|
—
|
|
18,089
|
|
|
9.0
|
|
1,789
|
|
|
0.8
|
|
16,455
|
|
|
8.1
|
||||
Heavy sour
|
19,014
|
|
|
8.6
|
|
21,168
|
|
|
10.5
|
|
19,803
|
|
|
9.1
|
|
22,244
|
|
|
10.9
|
||||
Total crude oil throughput
|
212,047
|
|
|
95.8
|
|
193,201
|
|
|
95.7
|
|
207,004
|
|
|
95.1
|
|
194,003
|
|
|
95.4
|
||||
All other feedstocks and blendstocks
|
9,422
|
|
|
4.2
|
|
8,724
|
|
|
4.3
|
|
10,780
|
|
|
4.9
|
|
9,248
|
|
|
4.6
|
||||
Total throughput
|
221,469
|
|
|
100.0
|
|
201,925
|
|
|
100.0
|
|
217,784
|
|
|
100.0
|
|
203,251
|
|
|
100.0
|
||||
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
108,977
|
|
|
48.8
|
|
95,253
|
|
|
47.1
|
|
106,727
|
|
|
48.7
|
|
96,710
|
|
|
47.4
|
||||
Distillate
|
94,931
|
|
|
42.6
|
|
84,617
|
|
|
41.8
|
|
91,933
|
|
|
41.9
|
|
84,232
|
|
|
41.3
|
||||
Other (excluding internally produced fuel)
|
19,255
|
|
|
8.6
|
|
22,546
|
|
|
11.1
|
|
20,665
|
|
|
9.4
|
|
23,043
|
|
|
11.3
|
||||
Total refining production (excluding internally produced fuel)
|
223,163
|
|
|
100.0
|
|
202,416
|
|
|
100.0
|
|
219,325
|
|
|
100.0
|
|
203,985
|
|
|
100.0
|
||||
Product price (dollars per gallon):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Gasoline
|
$
|
2.87
|
|
|
|
|
$
|
2.88
|
|
|
|
|
$
|
2.77
|
|
|
|
|
$
|
2.85
|
|
|
|
Distillate
|
$
|
2.97
|
|
|
|
|
$
|
2.95
|
|
|
|
|
$
|
2.98
|
|
|
|
|
$
|
3.03
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Market Indicators (dollars per barrel)
|
|
|
|
|
|
|
|
||||||||
West Texas Intermediate (WTI) NYMEX
|
$
|
102.99
|
|
|
$
|
94.17
|
|
|
$
|
100.84
|
|
|
$
|
94.26
|
|
Crude Oil Differentials:
|
|
|
|
|
|
|
|
|
|||||||
WTI less WTS (light/medium sour)
|
7.15
|
|
|
0.06
|
|
|
6.38
|
|
|
3.09
|
|
||||
WTI less WCS (heavy sour)
|
19.22
|
|
|
16.79
|
|
|
20.05
|
|
|
21.94
|
|
||||
NYMEX Crack Spreads:
|
|
|
|
|
|
|
|
|
|||||||
Gasoline
|
23.20
|
|
|
24.72
|
|
|
20.70
|
|
|
27.87
|
|
||||
Heating Oil
|
20.90
|
|
|
27.19
|
|
|
24.37
|
|
|
30.21
|
|
||||
NYMEX 2-1-1 Crack Spread
|
22.05
|
|
|
25.95
|
|
|
22.53
|
|
|
29.04
|
|
||||
PADD II Group 3 Basis:
|
|
|
|
|
|
|
|
|
|||||||
Gasoline
|
(7.06
|
)
|
|
1.52
|
|
|
(5.98
|
)
|
|
(2.88
|
)
|
||||
Ultra Low Sulfur Diesel
|
0.23
|
|
|
2.13
|
|
|
(0.84
|
)
|
|
2.11
|
|
||||
PADD II Group 3 Product Crack:
|
|
|
|
|
|
|
|
|
|||||||
Gasoline
|
16.14
|
|
|
26.23
|
|
|
14.72
|
|
|
24.99
|
|
||||
Ultra Low Sulfur Diesel
|
21.13
|
|
|
29.33
|
|
|
23.53
|
|
|
32.32
|
|
||||
PADD II Group 3 2-1-1
|
18.64
|
|
|
27.78
|
|
|
19.13
|
|
|
28.66
|
|
|
(1)
|
Amounts are shown exclusive of depreciation and amortization.
|
(2)
|
Direct operating expense is presented on a per crude oil throughput barrel basis. In order to derive the direct operating expenses per crude oil throughput barrel, we utilize total direct operating expenses, which does not include depreciation or amortization expense, and divide by the applicable number of crude oil throughput barrels for the period.
|
(3)
|
Gross profit is a measurement calculated as the difference between net sales and 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. Each of the components used in this calculation are taken directly from the petroleum business' financial results. In order to derive the gross profit per crude oil throughput barrel, we utilize the total dollar figures for gross profit as derived above and divide by the applicable number of crude oil throughput barrels for the period.
|
(4)
|
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization). Refining margin is a non-GAAP measure that we believe is important to investors in evaluating the refineries’ performance as a general indication of the amount above the cost of product sold at which it is 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)) are taken directly from the petroleum business’ financial results. 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 and refining margin per crude oil throughput barrel is important to enable investors to better understand and evaluate the petroleum business' ongoing operating results and for greater transparency in the review of our overall business, financial, operational and economic financial performance.
|
(5)
|
Adjusted Petroleum EBITDA represents operating income for the petroleum segment adjusted for (i) FIFO impacts (favorable) unfavorable, (ii) share-based compensation, non-cash, (iii) major scheduled turnaround expenses, (iv) current period settlements on derivative contracts, (v) depreciation and amortization and (vi) other income (expense). We present Adjusted Petroleum EBITDA because it is the starting point for the Refining Partnership’s available cash for distribution. Adjusted Petroleum EBITDA is not a recognized term under GAAP and should not be substituted for operating income as a measure of performance. Management believes that Adjusted Petroleum EBITDA enables investors to better understand the Refining Partnership’s ability to make distributions to its common unitholders, helps investors evaluate the petroleum segment’s ongoing operating results and allows for greater transparency in reviewing our overall financial, operational and economic performance. Adjusted Petroleum EBITDA presented by other companies may not be comparable to our presentation, since
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Petroleum:
|
|
|
|
|
|
|
|
||||||||
Petroleum operating income
|
$
|
151.9
|
|
|
$
|
229.1
|
|
|
$
|
316.5
|
|
|
$
|
564.7
|
|
FIFO impacts (favorable), unfavorable(a)
|
(24.3
|
)
|
|
(24.2
|
)
|
|
(45.9
|
)
|
|
(29.0
|
)
|
||||
Share-based compensation, non-cash
|
0.7
|
|
|
2.5
|
|
|
1.2
|
|
|
6.1
|
|
||||
Current period settlements on derivative contracts(b)
|
33.9
|
|
|
14.7
|
|
|
55.0
|
|
|
(37.8
|
)
|
||||
Depreciation and amortization
|
30.7
|
|
|
28.4
|
|
|
60.2
|
|
|
56.4
|
|
||||
Other income (expense), net
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Adjusted Petroleum EBITDA
|
$
|
192.9
|
|
|
$
|
250.6
|
|
|
$
|
387.0
|
|
|
$
|
560.5
|
|
|
(a)
|
FIFO is the petroleum business’ basis for determining inventory value on a GAAP basis. Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods thereby resulting in favorable FIFO impacts when crude oil prices increase and unfavorable FIFO impacts 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 crude oil throughput barrel, we utilize the total dollar figures for the FIFO impact and divide by the number of crude oil throughput barrels for the period.
|
(b)
|
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.
|
(6)
|
Direct operating expense is presented on a per barrel sold basis. Barrels sold are derived from the barrels produced and shipped from the refineries. We utilize direct operating expenses, which does not include depreciation or amortization expense, and divide the applicable number of barrels sold for the period to derive the metric.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Coffeyville Refinery Financial Results
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
1,585.5
|
|
|
$
|
1,349.2
|
|
|
$
|
3,157.8
|
|
|
$
|
2,841.7
|
|
Cost of product sold (exclusive of depreciation and amortization)
|
1,398.5
|
|
|
1,117.6
|
|
|
2,757.2
|
|
|
2,312.6
|
|
||||
Direct operating expenses (exclusive of depreciation and amortization)
|
53.7
|
|
|
50.1
|
|
|
107.1
|
|
|
102.3
|
|
||||
Depreciation and amortization
|
18.8
|
|
|
17.7
|
|
|
36.8
|
|
|
35.2
|
|
||||
Gross profit
|
$
|
114.5
|
|
|
$
|
163.8
|
|
|
$
|
256.7
|
|
|
$
|
391.6
|
|
Plus:
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses (exclusive of depreciation and amortization)
|
53.7
|
|
|
50.1
|
|
|
107.1
|
|
|
102.3
|
|
||||
Depreciation and amortization
|
18.8
|
|
|
17.7
|
|
|
36.8
|
|
|
35.2
|
|
||||
Refining margin
|
$
|
187.0
|
|
|
$
|
231.6
|
|
|
$
|
400.6
|
|
|
$
|
529.1
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(dollars per barrel)
|
||||||||||||||
Coffeyville Refinery Key Operating Statistics
|
|
|
|
|
|
|
|
||||||||
Per crude oil throughput barrel:
|
|
|
|
|
|
|
|
||||||||
Refining margin
|
$
|
15.61
|
|
|
$
|
21.71
|
|
|
$
|
17.31
|
|
|
$
|
24.27
|
|
Gross profit
|
$
|
9.55
|
|
|
$
|
15.35
|
|
|
$
|
11.09
|
|
|
$
|
17.97
|
|
Direct operating expenses (exclusive of depreciation and amortization)
|
$
|
4.48
|
|
|
$
|
4.69
|
|
|
$
|
4.63
|
|
|
$
|
4.69
|
|
Direct operating expenses (exclusive of depreciation and amortization) per barrel sold
|
$
|
4.12
|
|
|
$
|
4.37
|
|
|
$
|
4.19
|
|
|
$
|
4.35
|
|
Barrels sold (barrels per day)
|
143,412
|
|
|
125,851
|
|
|
141,226
|
|
|
129,777
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
||||
Coffeyville Refinery Throughput and Production Data (bpd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sweet
|
112,670
|
|
|
80.6
|
|
95,763
|
|
|
77.1
|
|
107,294
|
|
|
78.5
|
|
97,767
|
|
|
76.6
|
Medium
|
1
|
|
|
—
|
|
334
|
|
|
0.3
|
|
744
|
|
|
0.5
|
|
423
|
|
|
0.3
|
Heavy sour
|
19,014
|
|
|
13.6
|
|
21,168
|
|
|
17.0
|
|
19,803
|
|
|
14.5
|
|
22,244
|
|
|
17.4
|
Total crude oil throughput
|
131,685
|
|
|
94.2
|
|
117,265
|
|
|
94.4
|
|
127,841
|
|
|
93.5
|
|
120,434
|
|
|
94.3
|
All other feedstocks and blendstocks
|
8,133
|
|
|
5.8
|
|
6,962
|
|
|
5.6
|
|
8,897
|
|
|
6.5
|
|
7,265
|
|
|
5.7
|
Total throughput
|
139,818
|
|
|
100.0
|
|
124,227
|
|
|
100.0
|
|
136,738
|
|
|
100.0
|
|
127,699
|
|
|
100.0
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gasoline
|
68,348
|
|
|
47.9
|
|
59,908
|
|
|
47.3
|
|
67,338
|
|
|
48.2
|
|
61,154
|
|
|
47.0
|
Distillate
|
61,403
|
|
|
43.0
|
|
53,471
|
|
|
42.2
|
|
59,624
|
|
|
42.6
|
|
54,531
|
|
|
41.9
|
Other (excluding internally produced fuel)
|
13,023
|
|
|
9.1
|
|
13,272
|
|
|
10.5
|
|
12,899
|
|
|
9.2
|
|
14,488
|
|
|
11.1
|
Total refining production (excluding internally produced fuel)
|
142,774
|
|
|
100.0
|
|
126,651
|
|
|
100.0
|
|
139,861
|
|
|
100.0
|
|
130,173
|
|
|
100.0
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Wynnewood Refinery Financial Results
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
879.7
|
|
|
$
|
787.8
|
|
|
$
|
1,681.7
|
|
|
$
|
1,568.2
|
|
Cost of product sold (exclusive of depreciation and amortization)
|
774.2
|
|
|
658.8
|
|
|
1,478.7
|
|
|
1,269.2
|
|
||||
Direct operating expenses (exclusive of depreciation and amortization)
|
39.8
|
|
|
33.7
|
|
|
85.4
|
|
|
67.6
|
|
||||
Depreciation and amortization
|
10.1
|
|
|
9.5
|
|
|
20.1
|
|
|
18.8
|
|
||||
Gross Profit
|
$
|
55.6
|
|
|
$
|
85.8
|
|
|
$
|
97.5
|
|
|
$
|
212.6
|
|
Plus:
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses (exclusive of depreciation and amortization)
|
39.8
|
|
|
33.7
|
|
|
85.4
|
|
|
67.6
|
|
||||
Depreciation and amortization
|
10.1
|
|
|
9.5
|
|
|
20.1
|
|
|
18.8
|
|
||||
Refining margin
|
$
|
105.5
|
|
|
$
|
129.0
|
|
|
$
|
203.0
|
|
|
$
|
299.0
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(dollars per barrel)
|
||||||||||||||
Wynnewood Refinery Key Operating Statistics
|
|
|
|
|
|
|
|
||||||||
Per crude oil throughput barrel:
|
|
|
|
|
|
|
|
||||||||
Refining margin
|
$
|
14.42
|
|
|
$
|
18.67
|
|
|
$
|
14.16
|
|
|
$
|
22.46
|
|
Gross profit
|
$
|
7.60
|
|
|
$
|
12.41
|
|
|
$
|
6.80
|
|
|
$
|
15.97
|
|
Direct operating expenses (exclusive of depreciation and amortization)
|
$
|
5.44
|
|
|
$
|
4.88
|
|
|
$
|
5.96
|
|
|
$
|
5.08
|
|
Direct operating expenses (exclusive of depreciation and amortization) per barrel sold
|
$
|
5.41
|
|
|
$
|
4.97
|
|
|
$
|
5.93
|
|
|
$
|
5.09
|
|
Barrels sold (barrels per day)
|
80,883
|
|
|
74,463
|
|
|
79,534
|
|
|
73,302
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
|
|
|
%
|
||||
Wynnewood Refinery Throughput and Production Data (bpd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Throughput:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sweet
|
80,362
|
|
|
98.4
|
|
58,181
|
|
|
74.8
|
|
78,118
|
|
|
96.4
|
|
57,537
|
|
|
76.2
|
Medium
|
—
|
|
|
—
|
|
17,755
|
|
|
22.9
|
|
1,045
|
|
|
1.3
|
|
16,032
|
|
|
21.2
|
Heavy sour
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
Total crude oil throughput
|
80,362
|
|
|
98.4
|
|
75,936
|
|
|
97.7
|
|
79,163
|
|
|
97.7
|
|
73,569
|
|
|
97.4
|
All other feedstocks and blendstocks
|
1,289
|
|
|
1.6
|
|
1,762
|
|
|
2.3
|
|
1,883
|
|
|
2.3
|
|
1,983
|
|
|
2.6
|
Total throughput
|
81,651
|
|
|
100.0
|
|
77,698
|
|
|
100.0
|
|
81,046
|
|
|
100.0
|
|
75,552
|
|
|
100.0
|
Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gasoline
|
40,629
|
|
|
50.5
|
|
35,345
|
|
|
46.7
|
|
39,389
|
|
|
49.6
|
|
35,556
|
|
|
48.2
|
Distillate
|
33,528
|
|
|
41.7
|
|
31,146
|
|
|
41.1
|
|
32,309
|
|
|
40.6
|
|
29,701
|
|
|
40.2
|
Other (excluding internally produced fuel)
|
6,232
|
|
|
7.8
|
|
9,274
|
|
|
12.2
|
|
7,766
|
|
|
9.8
|
|
8,555
|
|
|
11.6
|
Total refining production (excluding internally produced fuel)
|
80,389
|
|
|
100.0
|
|
75,765
|
|
|
100.0
|
|
79,464
|
|
|
100.0
|
|
73,812
|
|
|
100.0
|
|
Three Months Ended
June 30, 2014 |
|
Three Months Ended
June 30, 2013 |
|
Total Variance
|
|
Price
Variance |
|
Volume
Variance |
|||||||||||||||||||||||||||
|
Volume(1)
|
|
$ per barrel
|
|
Sales $(2)
|
|
Volume(1)
|
|
$ per barrel
|
|
Sales $(2)
|
|
Volume(1)
|
|
Sales $(2)
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
Gasoline
|
10.4
|
|
|
$
|
120.59
|
|
|
$
|
1,253.6
|
|
|
9.2
|
|
|
$
|
120.80
|
|
|
$
|
1,110.7
|
|
|
1.2
|
|
|
$
|
142.9
|
|
|
$
|
(2.1
|
)
|
|
$
|
145.0
|
|
Distillate
|
8.9
|
|
|
$
|
124.86
|
|
|
$
|
1,117.9
|
|
|
7.4
|
|
|
$
|
124.07
|
|
|
$
|
926.5
|
|
|
1.5
|
|
|
$
|
191.4
|
|
|
$
|
7.0
|
|
|
$
|
184.4
|
|
|
(1)
|
Barrels in millions
|
(2)
|
Sales dollars in millions
|
|
Six Months Ended
June 30, 2014 |
|
Six Months Ended
June 30, 2013 |
|
Total Variance
|
|
Price
Variance |
|
Volume
Variance |
|||||||||||||||||||||||||||
|
Volume(1)
|
|
$ per barrel
|
|
Sales $(2)
|
|
Volume(1)
|
|
$ per barrel
|
|
Sales $(2)
|
|
Volume(1)
|
|
Sales $(2)
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
Gasoline
|
20.3
|
|
|
$
|
116.21
|
|
|
$
|
2,354.0
|
|
|
18.8
|
|
|
$
|
119.52
|
|
|
$
|
2,247.5
|
|
|
1.5
|
|
|
$
|
106.5
|
|
|
$
|
(67.1
|
)
|
|
$
|
173.6
|
|
Distillate
|
18.1
|
|
|
$
|
125.36
|
|
|
$
|
2,269.4
|
|
|
15.3
|
|
|
$
|
127.34
|
|
|
$
|
1,949.9
|
|
|
2.8
|
|
|
$
|
319.5
|
|
|
$
|
(35.7
|
)
|
|
$
|
355.2
|
|
|
(1)
|
Barrels in millions
|
(2)
|
Sales dollars in millions
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Nitrogen Fertilizer Business Financial Results
|
|
|
|
|
|
|
|
||||||||
Net sales
|
$
|
77.2
|
|
|
$
|
88.8
|
|
|
$
|
157.5
|
|
|
$
|
170.2
|
|
Cost of product sold(1)
|
19.4
|
|
|
15.6
|
|
|
41.1
|
|
|
26.2
|
|
||||
Direct operating expenses(1)
|
26.9
|
|
|
24.4
|
|
|
51.1
|
|
|
47.0
|
|
||||
Selling, general and administrative(1)
|
5.3
|
|
|
5.5
|
|
|
9.9
|
|
|
11.1
|
|
||||
Depreciation and amortization
|
6.8
|
|
|
6.2
|
|
|
13.5
|
|
|
12.0
|
|
||||
Operating income
|
$
|
18.8
|
|
|
$
|
37.1
|
|
|
$
|
41.9
|
|
|
$
|
73.9
|
|
Adjusted Nitrogen Fertilizer EBITDA(2)
|
$
|
25.7
|
|
|
$
|
44.1
|
|
|
$
|
55.7
|
|
|
$
|
87.9
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Key Operating Statistics
|
|
|
|
|
|
|
|
||||||||
Production (thousand tons):
|
|
|
|
|
|
|
|
||||||||
Ammonia (gross produced)(3)
|
92.2
|
|
|
91.3
|
|
|
183.3
|
|
|
202.7
|
|
||||
Ammonia (net available for sale)(3)(4)
|
3.2
|
|
|
2.2
|
|
|
12.1
|
|
|
32.9
|
|
||||
UAN
|
223.4
|
|
|
225.2
|
|
|
480.6
|
|
|
421.3
|
|
||||
Pet coke consumed (thousand tons)
|
117.3
|
|
|
114.4
|
|
|
242.1
|
|
|
244.2
|
|
||||
Pet coke (cost per ton)
|
$
|
27
|
|
|
$
|
29
|
|
|
$
|
28
|
|
|
$
|
30
|
|
Sales (thousand tons)(5):
|
|
|
|
|
|
|
|
||||||||
Ammonia
|
2.9
|
|
|
7.1
|
|
|
8.3
|
|
|
34.6
|
|
||||
UAN
|
239.2
|
|
|
217.3
|
|
|
493.9
|
|
|
411.4
|
|
||||
Product pricing at gate (dollars per ton)(5):
|
|
|
|
|
|
|
|
||||||||
Ammonia
|
$
|
521
|
|
|
$
|
688
|
|
|
$
|
493
|
|
|
$
|
668
|
|
UAN
|
$
|
283
|
|
|
$
|
331
|
|
|
$
|
267
|
|
|
$
|
314
|
|
On-stream factor(6):
|
|
|
|
|
|
|
|
||||||||
Gasification
|
94.2
|
%
|
|
91.6
|
%
|
|
96.5
|
%
|
|
95.5
|
%
|
||||
Ammonia
|
88.1
|
%
|
|
89.1
|
%
|
|
90.1
|
%
|
|
93.9
|
%
|
||||
UAN
|
85.9
|
%
|
|
86.5
|
%
|
|
91.4
|
%
|
|
89.7
|
%
|
||||
Reconciliation of net sales (dollars in millions):
|
|
|
|
|
|
|
|
||||||||
Sales net at gate
|
$
|
69.2
|
|
|
$
|
76.8
|
|
|
$
|
136.2
|
|
|
$
|
152.5
|
|
Freight in revenue
|
6.7
|
|
|
8.0
|
|
|
13.5
|
|
|
13.7
|
|
||||
Hydrogen revenue
|
0.9
|
|
|
4.0
|
|
|
6.8
|
|
|
4.0
|
|
||||
Other revenue
|
0.4
|
|
|
—
|
|
|
1.0
|
|
|
—
|
|
||||
Total net sales
|
$
|
77.2
|
|
|
$
|
88.8
|
|
|
$
|
157.5
|
|
|
$
|
170.2
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Market Indicators
|
|
|
|
|
|
|
|
||||||||
Natural gas NYMEX (dollars per MMBtu)
|
$
|
4.58
|
|
|
$
|
4.02
|
|
|
$
|
4.65
|
|
|
$
|
3.76
|
|
Ammonia — Southern Plains (dollars per ton)
|
561
|
|
|
653
|
|
|
501
|
|
|
674
|
|
||||
UAN — Corn belt (dollars per ton)
|
333
|
|
|
381
|
|
|
332
|
|
|
380
|
|
|
(1)
|
Amounts are shown exclusive of depreciation and amortization.
|
(2)
|
Adjusted Nitrogen Fertilizer EBITDA represents operating income adjusted for (i) share-based compensation, non-cash, (ii) major scheduled turnaround expenses, (iii) depreciation and amortization and (iv) other income (expense). We present Adjusted Nitrogen Fertilizer EBITDA because it is a key measure used in material covenants in the Nitrogen Fertilizer Partnership's credit facility and because it is the starting point for the Nitrogen Fertilizer Partnership’s available cash for distribution. Adjusted Nitrogen Fertilizer EBITDA is not a recognized term under GAAP and should not be substituted for operating income as a measure of performance. Management believes that Adjusted EBITDA enables investors to better understand and evaluate the Nitrogen Fertilizer Partnership’s ability to make distributions to the its common unitholders and its compliance with the covenants contained in the Nitrogen Fertilizer Partnership's credit facility. Adjusted Nitrogen Fertilizer EBITDA presented by other companies may not be comparable to our presentation, since each company may define those terms differently. Below is a reconciliation of operating income to Adjusted EBITDA for the nitrogen fertilizer segment for the three and
six
months ended
June 30, 2014
and
2013
:
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in millions)
|
||||||||||||||
Nitrogen Fertilizer:
|
|
|
|
|
|
|
|
||||||||
Nitrogen fertilizer operating income
|
$
|
18.8
|
|
|
$
|
37.1
|
|
|
$
|
41.9
|
|
|
$
|
73.9
|
|
Share-based compensation, non-cash
|
0.1
|
|
|
0.8
|
|
|
0.3
|
|
|
2.0
|
|
||||
Depreciation and amortization
|
6.8
|
|
|
6.2
|
|
|
13.5
|
|
|
12.0
|
|
||||
Adjusted Nitrogen Fertilizer EBITDA
|
$
|
25.7
|
|
|
$
|
44.1
|
|
|
$
|
55.7
|
|
|
$
|
87.9
|
|
(3)
|
Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into UAN. As a result of the completion of the UAN expansion project in February 2013, the Nitrogen Fertilizer Partnership expects to upgrade substantially all of the ammonia it produces into UAN. Net tons available for sale represent ammonia available for sale that was not upgraded into UAN.
|
(4)
|
In addition to produced ammonia, the Nitrogen Fertilizer Partnership acquired approximately
3,000
and
4,000
tons of ammonia during the three months ended
June 30, 2014
and
2013
, respectively. The Nitrogen Fertilizer Partnership acquired approximately
26,000
and
4,000
tons of ammonia during the
six
months ended
June 30, 2014
and
2013
, respectively.
|
(5)
|
Product pricing at gate per ton 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.
|
(6)
|
On-stream factor is the total number of hours operated divided by the total number of hours in the reporting period and is a measure of operating efficiency.
|
|
Three Months Ended
June 30, 2014 |
|
Three Months Ended
June 30, 2013 |
Total Variance
|
|
Price
Variance
|
|
Volume
Variance
|
||||||||||||||||||||||||||||
|
Volume(1)
|
|
$ per ton(2)
|
|
Sales $(3)
|
|
Volume(1)
|
|
$ per ton(2)
|
|
Sales $(3)
|
|
Volume(1)
|
|
Sales $(3)
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
UAN
|
239,216
|
|
|
$
|
311
|
|
|
$
|
74.4
|
|
|
217,287
|
|
|
$
|
367
|
|
|
$
|
79.8
|
|
|
21,929
|
|
|
$
|
(5.4
|
)
|
|
$
|
(13.5
|
)
|
|
$
|
8.1
|
|
Ammonia
|
2,854
|
|
|
$
|
542
|
|
|
$
|
1.5
|
|
|
7,068
|
|
|
$
|
710
|
|
|
$
|
5.0
|
|
|
(4,214
|
)
|
|
$
|
(3.5
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(3.0
|
)
|
Hydrogen
|
92,967
|
|
|
$
|
10
|
|
|
$
|
0.9
|
|
|
375,102
|
|
|
$
|
11
|
|
|
$
|
4.0
|
|
|
(282,135
|
)
|
|
$
|
(3.1
|
)
|
|
$
|
(0.1
|
)
|
|
$
|
(3.0
|
)
|
|
|
Six Months Ended
June 30, 2014 |
|
Six Months Ended
June 30, 2013 |
|
Total Variance
|
|
Price
Variance |
|
Volume
Variance |
|||||||||||||||||||||||||||
|
Volume(1)
|
|
$ per ton(2)
|
|
Sales $(3)
|
|
Volume(1)
|
|
$ per ton(2)
|
|
Sales $(3)
|
|
Volume(1)
|
|
Sales $(3)
|
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|||||||||||||||||||
UAN
|
493,886
|
|
|
$
|
295
|
|
|
$
|
145.5
|
|
|
411,428
|
|
|
$
|
346
|
|
|
$
|
142.4
|
|
|
82,458
|
|
|
$
|
3.1
|
|
|
$
|
(25.5
|
)
|
|
$
|
28.6
|
|
Ammonia
|
8,301
|
|
|
$
|
511
|
|
|
$
|
4.2
|
|
|
34,640
|
|
|
$
|
685
|
|
|
$
|
23.7
|
|
|
(26,339
|
)
|
|
$
|
(19.5
|
)
|
|
$
|
(1.4
|
)
|
|
$
|
(18.1
|
)
|
Hydrogen
|
671,431
|
|
|
$
|
10
|
|
|
$
|
6.8
|
|
|
377,815
|
|
|
$
|
11
|
|
|
$
|
4.0
|
|
|
293,616
|
|
|
$
|
2.8
|
|
|
$
|
(0.3
|
)
|
|
$
|
3.1
|
|
|
|
Six Months Ended
June 30, 2014 |
||
|
(in millions)
|
||
Petroleum Business (the Refining Partnership):
|
|
||
Coffeyville refinery:
|
|
||
Maintenance
|
$
|
43.0
|
|
Growth
|
1.4
|
|
|
Coffeyville refinery total capital
|
44.4
|
|
|
Wynnewood refinery:
|
|
||
Maintenance
|
32.3
|
|
|
Growth
|
20.0
|
|
|
Wynnewood refinery total capital
|
52.3
|
|
|
Other Petroleum
:
|
|
||
Maintenance
|
3.3
|
|
|
Growth
|
5.3
|
|
|
Other petroleum total capital
|
8.6
|
|
|
Petroleum business total capital
|
105.3
|
|
|
Nitrogen Fertilizer Business (the Nitrogen Fertilizer Partnership):
|
|
||
Maintenance
|
2.0
|
|
|
Growth
|
5.5
|
|
|
Nitrogen fertilizer business total capital
|
7.5
|
|
|
Corporate
|
2.1
|
|
|
Total capital spending
|
$
|
114.9
|
|
|
Six Months Ended
June 30, |
||||||
|
2014
|
|
2013
|
||||
|
(unaudited)
|
||||||
|
(in millions)
|
||||||
Net cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
405.5
|
|
|
$
|
381.0
|
|
Investing activities
|
(193.0
|
)
|
|
(133.1
|
)
|
||
Financing activities
|
(55.9
|
)
|
|
(9.4
|
)
|
||
Net increase in cash and cash equivalents
|
$
|
156.6
|
|
|
$
|
238.5
|
|
July 31, 2014
|
|
By:
|
/s/ JOHN J. LIPINSKI
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
July 31, 2014
|
|
By:
|
/s/ SUSAN M. BALL
|
|
|
|
|
Chief Financial Officer
|
|
|
|
|
(Principal Financial and Accounting Officer)
|
|
CVR Partners, LP
By: CVR GP, LLC, its general partner
|
CVR GP, LLC
|
||
By:
|
/s/ Mark A. Pytosh
|
By:
|
/s/ Susan M. Ball
|
Name:
|
Mark A. Pytosh
|
Name:
|
Susan M. Ball
|
Title:
|
Chief Executive Officer and President
|
Title:
|
Chief Financial Officer and Treasurer
|
CVR Energy, Inc.
|
|
By:
|
/s/ John J. Lipinski
|
Name:
|
John J. Lipinski
|
Title:
|
Chief Executive Officer and President
|
CVR Refining, LP
By: CVR Refining GP, LLC, its general partner
|
CVR Refining GP, LLC
|
||
By:
|
/s/ Susan M. Ball
|
By:
|
/s/ Susan M. Ball
|
Name:
|
Susan M. Ball
|
Name:
|
Susan M. Ball
|
Title:
|
Chief Financial Officer and Treasurer
|
Title:
|
Chief Financial Officer and Treasurer
|
CVR Energy, Inc.
|
|
By:
|
/s/ John J. Lipinski
|
Name:
|
John J. Lipinski
|
Title:
|
Chief Executive Officer and President
|
By:
|
/s/ JOHN J. LIPINSKI
|
|
John J. Lipinski
|
|
Chief Executive Officer
|
By:
|
/s/ SUSAN M. BALL
|
|
Susan M. Ball
|
|
Chief Financial Officer
|
By:
|
/s/ JOHN J. LIPINSKI
|
|
John J. Lipinski
|
|
Chief Executive Officer
|
By:
|
/s/ SUSAN M. BALL
|
|
Susan M. Ball
|
|
Chief Financial Officer
|