CVR Energy Inc. · NYSE:CVI
CVR Energy — Investor Presentation (March 2022)
31 slides from CVR Energy's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation conta ins forward-looking statements (“FLS”) which are protected as FLS under the PSLRA, and which a re based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. The assumptions and estimates unde
Slide 3: Mission and Values
Mission and Values Our mission is to be a top tier North American renewable fuels, petroleum refining, and nitrogen-based fertilizer company as measured by safe and reliable operations, superior financial performance and profitable growth. Our core values define the way we do business every day to a
Slide 4: Company Overview
Company Overview CVR Energy is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries, with an increasing focus on the production of renewable biofuels. CVR Energy’s Petroleum segment is comprised of two Mid-Continent complex refine
Slide 5: Strategic Priorities
Strategic Priorities Continuing to improve in all Environmental, Health and Safety matters – Safety is Job 1 Focus on EH&S Petroleum Segment experienced a 44% reduction in total recordable incident rate and a 31% reduction in environmental events through for the full-year 2021 compared to 2020. Fert
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Key Priorities • Create long-term value through safe, reliable operations and continuously optimizing core refining, renewables, fertilizer and associated logistics assets; • Invest in high return projects that are complimentary to existing assets, improve feedstock suppl
Slide 7: ESG Highlights
ESG Highlights Environmental Social o Reduced consolidated criteria pollutant emissions by 24% from o Diversity is a key component of our Mission & Values. 2016 to 2020. o Site-Level Community Impact Committees steer local o Constructing a renewable diesel unit at Wynnewood designed to contributions
Slide 8: Petroleum Segment
PETROLEUM SEGMENT
Slide 9: Asset Footprint
Asset Footprint Mid-Continent Refineries Nameplate crude oil capacity of 206,500 bpd across two refineries • 4Q21 total throughput of 222,257 bpd • FY21 total throughput of 209,084 bpd Average complexity of 10.8 Located in Group 3 of PADD II Crude Oil Sourcing Optionality ➢ Refineries are strategica
Slide 10: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries Marketing Network Optionality ➢ Marketing activities focused in central mid-continent area via rack marketing, supplying nearby customers and at terminals on third-party distribution systems. ➢ Rack marketing enables the sale of blended products, allowing CVR
Slide 11: High-Quality Refining Assets
High-Quality Refining Assets Consolidated Top Tier Refining Margin (1) Consolidated Low-Cost Operator(2) Consolidated High Utilization Rates Total Throughput and Production Mix (1) Other (5) 6% Other (4) 16% Heavy Canadian (3) 2% Midland WTI & WTL 3% Condensate 7% Distillate 41% Cushing WTI 30% Gaso
Slide 12: Improving Macro Environment
Improving Macro Environment US Gasoline Demand Magellan System Gasoline Demand US Diesel Demand Magellan System Diesel Demand Source: EIA, Magellan 11
Slide 13: Improving Macro Environment
Improving Macro Environment US Gasoline Inventories Magellan System Gasoline Inventories US Diesel Inventories Magellan System Diesel Inventories Source: EIA, Magellan 12
Slide 14: Improving Macro Environment
Improving Macro Environment 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) RVO-Weighted RINs ($/bbl)1,2 WCS – WTI Differential ($/bbl) Midland-Cushing and WTL-WTI Differentials ($/bbl) (1) Assumes high-end of proposed 2021 and 2022 Renewable Volume Obligations (2) 1Q 2022 represents WTD prici
Slide 15: Expanding into Renewable Biofuels
Expanding into Renewable Biofuels(1) Over the next year, we plan to restructure our business to segregate our renewable operations. • Conversion of the existing hydrocracker at Wynnewood to renewable diesel service and retooling Renewable Diesel the refinery for maximum condensate processing. Phase
Slide 16: Renewable Diesel Initiatives
Renewable Diesel Initiatives KSAAT Project at Wynnewood Wynnewood Hydrocracker Conversion(1) Renewable Diesel Margin Proxy Project Highlights: • Convert 19,000 BPD hydrocracker at Wynnewood to process 100 million gallons per year of washed and bleached soybean oil or pre-treated corn oil to produce
Slide 17: Renewable Diesel Initiatives
Renewable Diesel Initiatives Wynnewood Phase 1(1) Project Economics KSAAT Project at Wynnewood • Renewable diesel margins impacted by several factors: • Crude oil price and spread between ULSD and Soybean oil (HOBO spread) • RINs prices (1.7 D4 Biodiesel RINs generated per gallon of renewable diesel
Slide 18: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds $250 2022 Petroleum Segment and RDU Capex of $182 - $206M $200 Environmental and Maintenance spending estimated at $100M to $110M for FY22. $150 $M Growth capex estimated at $82M to $96M. $100 ➢ Substantially all budgeted growth capital spending for $50 2022 is r
Slide 19: Fertilizer Segment
FERTILIZER SEGMENT ee at | See ee af ; THES fae | nak
Slide 20: Stable Trends in Fertilizer Supply & Demand
Stable Trends in Fertilizer Supply & Demand Corn Stocks to Use US Nitrogen Supply ➢ Fertilizers typically represent approximately 15% ➢ Major global nitrogen capacity build cycle largely of farmers’ cost structure and significantly improve complete in 2017/2018, and additional tons have yields. been
Slide 21: Recent Domestic Nitrogen Fertilizer Market Conditions
Recent Domestic Nitrogen Fertilizer Market Conditions ➢ Planted acres and crop yields came in lower-than-expected while Chinese purchases of corn increased, leading to a 50% reduction in the USDA’s carryout inventory estimates. ➢ Fall demand for ammonia was the highest it has been in several years.
Slide 22: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. ➢ Corn has a variety of uses and applications, U.S. Domestic Corn Use including feed grains, ethanol for fuel and food, 14.0 seed and industrial (FSI). 12.0 ➢ Feed grains 10.0 (Bushels in billions) ▪ ~96% of domestic feed grains are supplied 8.0 by corn. 6.0 4.0 ▪
Slide 23: Strategically Located Assets
Strategically Located Assets ➢ Large geographic footprint serving the Southern Plains and Corn Belt region. ➢ Well positioned to minimize distribution costs and maximize net back pricing. ➢ Rail loading rack at Coffeyville provides significant logistics optionality west of the Mississippi River due
Slide 24: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes (1) Consolidated Ammonia Utilization(2) 1,400 105% 101% 1,200 100% 98% 1,000 Thousand tons 95% 92% 800 90% 90% 600 85% 400 80% 200 0 75% 2017 2018 2019 2020 2021 Three Months Ended December 31, Twelve Months Ended December 31, Ammonia (gross p
Slide 25: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses $45 2022 Total Capex budget of $36M - $39M $40 Environmental and Maintenance spending estimated at $35 $32M - $34M. $30 $25 Growth capex estimated at $4M - $5M. $M $20 $15 ➢ Growth capex budget includes Urea/UAN expansion $10 projects at Coffeyville. $5 $
Slide 26: Appendix
APPENDIX
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA – EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends. Direct Operating Expenses per Throughput Bar
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Energy, Inc. 2017 2018 2019 2020 2021 1Q 2021 2Q 2021 3Q 2021 4Q 2021 TTM Net Income $ 258 $ 366 $ 362 $ (320) $ 74 $ (55) $ (2) $ 106 $ 25 $ 74 Add: Interest expense and other financing costs, net of interest income 109 102 102 130 117 31 38 23 24 1
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Partners, LP 2017 2018 2019 2020 2021 Net Income (loss) $ (73) $ (50) $ (35) $ (98) $ 78 Add: Interest expense and other financing costs, net of interest income 63 62 62 63 $ 61 Add: Income tax expense (benefit) - - - - - Add: Depreciation and amorti
Slide 30: 2022 Estimated Capital Expenditures
2022 Estimated Capital Expenditures 2021 Actual 2022 Estimate (1) Maintenance Growth Total Maintenance Growth Total Low High Low High Low High Petroleum $ 47 $ 3 $ 50 $ 100 $ 110 $ 2 $ 6 $ 102 $ 116 (2) Renewables - 148 148 - - 80 90 80 90 Nitrogen Fertilizer 16 10 26 32 34 4 5 36 39 Other 2 - 2 4 6
Slide 31: Simplified Organizational Structure
Simplified Organizational Structure Public Icahn Enterprises L.P. and Affiliates 29% 71% CVR Energy, Inc. (NYSE:CVI) Wynnewood Insurance Corporation CVR Energy Holdings, Inc. CVR Aviation, LLC Public 34.1% 65.9% CVR Services, LLC CVR GP, LLC CVR Refining GP, LLC 63.6% 36.4% Non-Economic General Part