Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (September 2024)
30 slides from Cvr Energy's investor presentation, Sep 3, 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements (“FLS”) which are protected as FLS under the PSLRA, and which are based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. The assumptions and estimates underl
Slide 3: Mission and Values
Mission and Values Safety - We always put safety first. The protection of our employees, contractors and communities is paramount. We have an unwavering commitment to safety above all else. If it’s not safe, then we don’t do it. Environment - We care for our environment. Complying with all regulatio
Slide 4: Company Overview
Company Overview Petroleum Segment: ▪ Two strategically located Mid-Continent refineries close to Cushing, Oklahoma. Total nameplate capacity 206,500 bpd. ▪ Direct access to crude oil and condensate fields in the Anadarko and Arkoma Basins. ▪ Complementary logistics assets and access to multiple key
Slide 5: Strategic Priorities
Strategic Priorities Focus on EH&S Performance Preserve Cash Flow Maintain Balance Sheet & Liquidity Focus on Crude Oil Quality & Differentials Grow our Renewables Business Maximize Returns to Investors Focusing on improvements in Environmental, Health and Safety Matters – Safety is Job #1 Consolida
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Safety, reliability and environmental compliance are core to CVR’s management philosophy ▪ Approximately $100MM in annual sustaining and regulatory capex, allocated to assets through a continuous assessment process. ▪ Run-rate annual refining turnaround investment of $75M
Slide 7: Petroleum Segment
PETROLEUM SEGMENT
Slide 8: Asset Footprint
Asset Footprint 7 Nameplate crude oil capacity of 206,500 bpd across two refineries ▪ 2Q 2024 total throughput of 186,208 bpd, impacted by the fire at the Wynnewood Refinery ▪ FY 2023 total throughput of 208,219 bpd; Crude oil capacity utilization of approximately 92% Average complexity of 10.8 Loca
Slide 9: Strategically Located Mid-Con Refineries Multiple Product Sales Outlets
Strategically Located Mid-Con Refineries Multiple Product Sales Outlets Focused on maximizing refined product netbacks and participating in renewable fuel blending economics and internal generation of RINs whenever possible. For the twelve months ended June 30, 2024: ▪ Approximately 20% of refined p
Slide 10: High-Quality Refining Assets
High-Quality Refining Assets Consolidated High Utilization Rates Total Throughput and Production Mix(2) Consolidated Top Tier Refining Margin (1) Consolidated Low-Cost Operator(1) (1) Refining margin and Direct operating expense based on per barrel of total throughput. (2) Based on total throughputs
Slide 11: Constructive Macro Environment
Constructive Macro Environment 10Source: EIA US Gasoline Demand PADD II Gasoline Demand US Diesel Demand PADD II Diesel Demand
Slide 12: Constructive Macro Environment
Constructive Macro Environment 11Source: EIA US Gasoline Inventories PADD II Gasoline Inventories US Diesel Inventories PADD II Diesel Inventories
Slide 13: Constructive Macro Environment
Constructive Macro Environment 12Source: MarketView as of August 26, 2024 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) WCS – WTI Differential ($/bbl)RVO-Weighted RINs ($/bbl) Group 3 Crack Spreads ($/bbl)
Slide 14: Renewables Initiatives at Wynnewood and Coffeyville
▪ Feed pre-treater at Wynnewood began operations in March 2024. Addition of the PTU enables processing of inedible corn oil, animal fats and used cooking oils that generate additional LCFS credits. ▪ Capitalizes on Wynnewood’s strategic location in the farm belt with access to a wide variety of feed
Slide 15: Renewable Diesel Initiatives KSAAT Project at Wynnewood
Renewable Diesel Initiatives 14 KSAAT Project at Wynnewood Renewable diesel margins impacted by several factors: ▪ Crude oil price and spread between ULSD and Soybean oil (HOBO spread) ▪ Feedstock basis (transportation cost + premium for pretreated material) ▪ RINs prices (1.7 D4 Biodiesel RINs gene
Slide 16: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds 15 Note: As of June 30, 2024. Shaded areas indicate the top end of capital expenditure estimates. ▪ Maintenance capex estimated at $109MM to $123MM. ▪ Growth capex estimated at $46MM to $54MM. ▪ Wynnewood Alky Project accounts for a significant portion of the exp
Slide 17: Fertilizer Segment
FERTILIZER SEGMENT
Slide 18: Stable Trends in Fertilizer Supply & Demand
17 Stable Trends in Fertilizer Supply & Demand Source: USDA, Fertecon US Nitrogen SupplyCorn Stocks to Use ▪ Fertilizers typically represent approximately 15% of farmers’ cost structure and significantly improve yields. ▪ USDA projecting stocks to use ratio for 2024/2025 at approximately 14%. Nitrog
Slide 19: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. Source: USDA Economic Research Service and USDA WASDE. (1) Based on 2019 – 2023 average. 18 ▪ Corn has a variety of uses and applications, including feed grains, ethanol for fuel, and food, seed and industrial (FSI) ▪ Feed grains ▪ ~96% of domestic feed grains are
Slide 20: Nitrogen Fertilizer Market Conditions
▪ Inventories of nitrogen fertilizers across the industry were lower than normal starting the new year after a robust fall application period. ▪ Corn Belt and UAN and ammonia prices for spring delivery were approximately $280 - $295/ton and $550 - $580/ton, respectively. ▪ Demand for ammonia was str
Slide 21: Nitrogen Fertilizer Facilities and Distribution Footprint
▪ Large geographic footprint serving the Southern Plains and Corn Belt regions ▪ Well positioned to minimize distribution costs and maximize net back pricing ▪ Rail loading rack at the Coffeyville facility provides significant logistics optionality west of the Mississippi River due to access to both
Slide 22: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes(1) Consolidated Ammonia Utilization Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(2) (1) For the twelve months ended June 30, 2024. (2) Excludes freight and other. 21
Slide 23: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses 22 ▪ Maintenance capex estimated at $29MM - $31MM. ▪ Growth capex estimated at $11MM - $12MM. ▪ No planned turnarounds scheduled in 2024. ▪ Next planned turnaround is at Coffeyville in 2025. Note: As of June 30, 2024. Shaded areas indicate the top end of
Slide 24: Appendix
APPENDIX
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures 24 Adjusted EBITDA represents EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends that we deem useful. Ad
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures 25 Note: All amounts on this slide are adjusted for the turnaround accounting change effective in 1Q 2019. These amounts are unaudited. (In USD Millions) CVR Energy, Inc. 2020 2021 2022 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 LTM Net Income (loss) (320)$ 74$ 644$ 878$ 354$ 9
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures 26 Petroleum Segment (In USD Millions, except per bbl data) Refining Margin and Adjusted Refining Margin 2020 2021 2022 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 LTM Net sales 3,586$ 6,721$ 9,919$ 8,287$ 2,298$ 1,997$ 1,722$ 1,795$ 7,812$ Less: Cost of materials and other (3,2
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures 27 (In USD Millions) CVR Partners, L.P. 2020 2021 2022 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 LTM Net Income (loss) (98)$ 78$ 287$ 172$ 1$ 10$ 13$ 26$ 50$ Add: Interest expense and other financing costs, net of interest income 63 61 34 29 8 7 8 8 31 Add: Depreciation and am
Slide 29: 2024 Estimated Capital Expenditures
2024 Estimated Capital Expenditures 28 (1) Includes renewables spending for the Wynnewood Refinery’s renewable feedstock pre-treater project. As of June 30, 2024, Renewables does not meet the definition of a reportable segment as defined under Accounting Standards Codification Topic 280. Maintenance
Slide 30: Simplified Organizational Structure
50% CVR Energy, Inc. NYSE: CVI Icahn Enterprises L.P & Affiliates Public CVR GP, LLC CVR Partners, LP NYSE: UAN Nitrogen Fertilizer Segment Subsidiaries Public 63.2 % N-E GP Interest(2) (1) Ownership is 100% unless otherwise noted (2) Non-Economic General Partner Interest (“N-E GP Interest”) 33.7 %