Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (April 2011)
20 slides from Cvr Energy's investor presentation, Apr 14, 2011
Slide 1: CVR Energy, Inc.
CVR ENERGY, INC. NYSE : CVI
Slide 2: Forward-looking statements
The following information contains forward-looking statements based on management’s current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties, assumptions and other important factors. You are cautioned not to p
Slide 3: CVR Energy, Inc. — a diversified business
CVR Energy, Inc. — a diversified business jexs| Nitrogen Fertilizer MLP Petroleum Refining Business Energy
Slide 4: Nitrogen Fertilizer MLP
Gi Nitrogen Fertilizer MLP Upgrading low-cost petroleum coke to high-value nitrogen fertilizers * Geographic advantage — located in farm belt * Publically traded on the NYSE : “UAN” * Significant feedstock cost advantage versus natural gas producers Energy ‘
Slide 5: Fertilizer distribution and tons sold in 2010
WA MT ND OR MN ID WI SD WY NE IA NV UT IL CA CO KS MO Additional NM Shipments hipments ents AZ OK AR EastEasst of the Mississipp Mississippisipp River er TX LA Tons of Fertilizer Sold in 2010 100,000+ 10,000 to 100,000 Ureaa Up to 10,000 Im Imports:mporrts: mport : Rail distribution Gulf Gu ulf Coas
Slide 6: Grain Production and Stock to Use Ratio
Grain Production (Millions of Tons) ()Stock to Use Ratio (%) Grain Production Stock to Use Ratio Note: Grains include barley, corn, oats, sorghum, and wheat. Stock to use ratio is average of inventory to consumption for that year. Years are fertilizer years ending on June 30. Data as of November 18,
Slide 7: Natural Gas Price
Natural Gas Price ($/MMBtu) NBP, Britain $8.83 Henry Hub, Louisiana $3.80 Sep-07 Aug-08 Jun-09 Apr-10 Feb-11 Aug-11E Mar-12E Source: European prices converted from GBP/Therm to $/MMBtu, based on daily exchange rate Historical Sources: NBP Weekly Spot Rate, Henry Hub Weekly Spot Rate Forecast Sources
Slide 8: Ammonia and UAN prices per ton
($ per Ton) 1,000 900 800 700Ammonia $603 600 5 Yr. Avg. 500Ammonia $467 5 Yr. Avg. UAN 400$354 Ammonia $276 300 2005 Yr. Avg. 5 Yr. Avg. UAN $292 100UAN $159 0 1999 2000 2001 2002 2004 2005 2006 2007 2009 2010 2011 Southern Plains Ammonia Corn Belt UAN 5-Yr Average Southern Plains Ammonia Source: G
Slide 9: EBITDA sensitivity to fertilizer prices
EBITDA (1) ($MM) Forecasted NTM 2503/31/2012 Prices 224 5 Year Avg. Spot Prices (2) $147 199 200 174 149150 150 124 99 100 74 49 50 24 0 UAN 150 175 200 225 250 275 278 300 325 350 Ammonia 300 350 400 450 500 550 547 600 650 700 Price per Ton ($) Net Sales 171 196 221 246 271 296 297 321 346 371 Ava
Slide 10: Petroleum refining advantages
• Benefit from PADD II Group 3 location • WTI crude advantaged feedstocks • Feedstock supported by owned crude gathering and pipeline systems 10
Slide 11: Throughput terminals and pipelines
Throughput Terminals YearTotal Added Terminals Pre-2006 2 2006 8 2007 17 2008 23 2009 30 2010 42 Magellan Pipeline NuStar Pipeline Enterprise Pipeline Corporate Headquarters 11
Slide 12: Refinery crude capacity and complexity comparison
Crude Capacity Complexity Company Location (bpd) Index NCRA McPherson, KS 82,700 15.8 CVR Energy Coffeyville, KS 115,000 12.9 Frontier Oil El Dorado, KS 135,000 11.9 Valero Ardmore, OK 91,500 11.3 ConocoPhillips Ponca City, OK 187,000 11.2 Gary Williams Energy Wynnewood, OK 52,500 8.2 Holly (Sinclai
Slide 13: Crude oil gathering and pipeline system map
CanadaCa Bakken Montana Clearbrook Big Timber North DakotaD Minnesota Jackson Wisconsin South Dakota Wyoming Sioux Falls Sioux City Iowa Nebraska Flanagan Des Salt Lake City Moines Omaha Utah Illinois Colorado DJ PhillipsburgP Denver Basin Pllaa PlainvilleiKansas Kansas City Topeka Valley Center Hum
Slide 14: Refinery throughput and flexibility
6% Flexibility bpd 120,767 124,553 Note: Refinery averages 2.4 mscf/day of excess hydrogen (13k k tons of ammonia). 14
Slide 15: Financial Segment
Financial Segment Driving shareholder value through prudent management of our balance sheet and operational excellence
Slide 16: CVR Partners UAN offering
NYSE Ticker: UAN Total units with over-allotment: $22.1m common units (30.2%) $16 per LP unit ($3 higher than Pricing: original mid-point) NTM estimated distribution / yield: $1.92 per unit / 12% Buy the GP and extinguish IDR’s, distribution to Coffeyville Resources, Use of proceeds: general growth
Slide 17: Credit facility balances and maturities
as of April 8, 2011 Current Balance Maturity Date Term Loan $125m April 13, 2016 $25m Revolver -April 13, 2016 17
Slide 18: Notes, ABL, cash and debt maturity schedule
as of April 8, 2011 Current Balance 1st Call Date Maturity Date 9% Secured 1st Lien Note $247.5m April 6, 2012 April 6, 2015 10.875% Secured 2nd Lien Note $225.0m April 6, 2013 April 6, 2017 $250m Asset Based Loan $41.0m August 22, 2015 Cash $183.0m$275 $225 1st Lien $175 ABL $1252nd Lien $75 $25 20
Slide 19: Market value and liquidity comparison
2.5 $225.4$2.0 $250.0 2.0 $200.0 $134.5 Billions 1.5 $150.0$1.3 $71.01.0$0.9 $100.0 $21.3 0.5 $50.0 $-0.0 CVI CVI WNR DK ALJUAN $487 $454 500 400$54Cash $277 300$183ABL Revolver 200Contango $209Barrels 100 0 2008 2009 2010 (1) Source: Capital IQ 19
Slide 20: Q&A
Q&A