Cvr Energy Inc. · NYSE:CVI
Cvr Energy — FY2011 Earnings Presentation
30 slides from Cvr Energy's earnings presentation, Feb 28, 2012
Slide 1: 4th Quarter and Full Year 2011 Earnings Report
Exhibit 99.1 4 th Quarter and Full Year 2011 Earnings Report February 28, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation should be reviewed in conjunction with CVR Energy, Inc.’s Fourth Quarter earnings conference call held on February 28, 2012. The following information contains forward- looking statements based on management’s current expectations and beliefs, as well as
Slide 3: Consolidated Results
Consolidated Results Fourth Quarter Full Year (In millions, except for EPS/Distributions) Q4 2011 Q4 2010 Percent 2011 2010 Percent (1) Adjusted EBITDA $ 80.5 $ 55.8 + 44% $ 692.0 $ 192.0 + 260% Adjusted Fully Diluted (2) $ 0.34 $ 0.16 + 113% $ 3.94 $ 0.47 + 738% EPS CVR Partners Adjusted (3) $ 48.4
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights • Strong earnings and cash flow from both segments • Completion of first phase turnaround in Coffeyville ($54m spent in Q4) • Completed acquisition of Gary Williams, 70,000 bpd, 9.3 Nelson complexity • Set a record for gathered barrels of 37,500+ bpd in one month in 2011, n
Slide 5: Current Outlook
Current Outlook Market Outlook Operational Highlights • Brent – WTI and Canadian crude differentials • Wynnewood Operational Improvements recently widened significantly • Following temporary downtime in January, crude throughputs currently at 70k bpd • Crack spreads remain well above historic levels
Slide 6: Market Environment - Petroleum
Market Environment - Petroleum NYMEX 2-1-1 Crack & Brent - WTI Differential (1) $40 $35 $30 $25 $20 $15 $10 $5 $0 ($5) Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 NYMEX 2-1-1 Crack Brent-WTI Differential 2010 2011 Q4 2011 Current Average Differential $ 0.77 $ 15.89 $ 15.07 $ 16.62
Slide 7: Crack Spread vs. Historical Norm
Crack Spread vs. Historical Norm NYMEX 2-1-1 Crack vs NYMEX Crude Oil Yearly Averages 1997 to 2011 $35 $30 $25 $20 $15 $10 $5 $0 $0 $20 $40 $60 $80 $100 $120 NYMEX CL, $/Bbl Yrly Avgs Yrly Avgs Trendline 2012 Daily 7 Note: The trendline does not include 2011
Slide 8: Crack Spread Hedging
Crack Spread Hedging Volume Hedged (1) 5.0 $30 4.5 4.5 3.9 $25 4.0 $25.85 $23.87 $20.45 $24.13 $24.56 3.5 $23.19 $23.41 $21.86 $20 3.0 2.9 2.9 2.5 $15 2.0 2.0 $10 1.5 1.0 1.0 1.0 1.0 $5 0.5 0.0 $0 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Base Level 11/28/2011 As of 12/31/2011 As of 1/
Slide 9: Market Environment - Fertilizer
Market Environment - Fertilizer UAN, Ammonia & Urea Prices 9 Source: Green Markets
Slide 10: Financial
Financial
Slide 11: Financial Results
Financial Results Fourth Quarter Full Year (In millions, except for EPS/EPU) Q4 2011 Q4 2010 2011 2010 Net earnings attributable to $ 65.9 $ 2.3 $ 345.8 $ 14.3 CVR stockholders Earnings per diluted share $ 0.76 $ 0.03 $ 3.94 $ 0.16 EBITDA $ 140.0 $ 47.0 $ 696.2 $ 165.1 Adjusted EBITDA(1) $ 80.5 $ 55
Slide 12: Petroleum Segment – Fourth Quarter
Petroleum Segment – Fourth Quarter (In millions except for barrels sold data) Operating Earnings Bridge Q4 2011 Q3 2011 Q4 2010 $120 Net Sales $ 979.5 $ 1,284.4 $ 1,109.6 $100 Operating Income $ (3.3) $ 179.8 $ 60.4 $8.4 Adjusted EBITDA $ 47.6 $ 232.0 $ 51.1 $80 $34.3 $27.5 Segment SG&A $ 11.1 $ 8.6
Slide 13: Petroleum Segment – Full Year
Petroleum Segment – Full Year (In millions except for barrels sold data) Operating Earnings Bridge FY 2011 FY 2010 $700 Net Sales $ 4,751.8 $ 3,903.8 $600 $54.5 Operating Income $ 465.7 $ 104.6 $94.6 Adjusted EBITDA $ 580.9 $ 154.7 $500 $9.8 Segment SG&A $ 42.0 $ 41.7 $400 $520.0 Crude Oil Throughpu
Slide 14: Nitrogen Fertilizer Segment – Fourth Quarter
Nitrogen Fertilizer Segment – Fourth Quarter (in millions except for tons sold data) Operating Earnings Bridge Q4 2011 Q3 2011 Q4 2010 $50 Net Sales $ 87.6 $ 77.2 $ 39.4 Operating Income $ 42.6 $ 37.5 $ (9.7) $40 $7.0 Adjusted EBITDA $ 48.4 $ 43.3 $ 7.5 $4.9 $30 Segment SG&A $ 4.6 $ 4.5 $ 11.9 $20 $
Slide 15: Nitrogen Fertilizer Segment – Full Year
Nitrogen Fertilizer Segment – Full Year (in millions except for tons sold data) Operating Earnings Bridge FY 2011 FY 2010 $160 Net Sales $ 302.9 $ 180.5 $140 $0.2 Operating Income $ 136.2 $ 20.4 $(1.4) $120 $23.2 Adjusted EBITDA $ 162.6 $ 52.6 $(8.2) Segment SG&A $ 22.2 $ 20.6 $100 Ammonia Sales (00
Slide 16: Capital Spend Summary
Capital Spend Summary $300 Refinery Nitrogen turnaround $200 years Petroleum $100 $0 2010 2011 2012 Capital Summary ($ in millions) 2010 2011 Estimated 2012 Petroleum Discretionary $ 1.6 $ 18.1 $ 24.7 Non-Discretionary (1) 18.2 50.5 139.9 Other 2.5 1.8 1.7 Total Petroleum $ 22.3 $ 70.4 $ 166.3 Nitro
Slide 17: Cash Flow Waterfall – 2010 to 2011
Cash Flow Waterfall – 2010 to 2011 $1,400 $1,200 $1,000 $630 $586 $800 $49 $600 $90 D&A $99 $176 $400 $379 NI $200 $388 $200 Cash $0 2010 Cash, NI & IPO & Net Debt Gary Williams AP, AR, SBC, Cap Ex & Debt Inventory 2011 Cash D&A Issuance Acquisition Prepaids & Payments Other 17
Slide 18: Debt Metrics
Debt Metrics Consolidated Net Debt ($ in millions) Financial Metrics 2007 2008 2009 2010 2011 Debt to Capital 54% 46% 43% 41% 40% Debt to Adj. 2.8 2.2 2.4 2.5 1.3 EBITDA 18
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the actual results in accordance with U.S. generally accepted accounting principles (GAAP), for the applicable periods, the Company also uses certain non-GAAP financial measures as discussed below, which are adjusted for GAAP-based results. The use of non-GA
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA: EBITDA represents net income before the effect of interest expense, interest income, income tax expense (benefit) and depreciation and amortization. EBITDA is not a calculation based upon GAAP; however, the amounts included in EBITDA are derived from amounts inclu
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Refining margin : 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 i
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Refining margin per crude oil throughput barrel adjusted for FIFO : Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortizatio
Slide 24: CVI Performance
CVI Performance Petroleum Segment Fourth Quarter Full Year ($ per crude oil throughput barrel) Q4 2011 Q4 2010 2011 2010 NYMEX 2-1-1 $ 23.49 $ 11.01 $ 26.33 $ 10.07 Purchased crude discount 1.92 4.12 3.95 3.31 Group 3 basis 0.05 (0.65) 0.44 (0.06) Liquid Volume yield loss (5.34) (4.65) (5.50) (4.07)
Slide 25: Capital Structure
Capital Structure Full Year Financials ($ in millions) 2007 2008 2009 2010 2011 Cash $ 30.5 $ 8.9 $ 36.9 $ 200.0 $ 388.3 Long Term Debt 500.8 495.9 491.3 476.9 853.9 Net Debt 470.3 486.9 454.4 276.9 475.5 CVR Stockholder’s 432.7 579.5 653.8 689.6 1,151.6 Equity Adjusted EBITDA(1)(2) $ 139.0 $ 218.1
Slide 26: Consolidated Non-GAAP Financial Measures
Consolidated Non-GAAP Financial Measures Full Year Financials ($ in millions) 2007 2008 2009 2010 2011 Consolidated net income (loss) attributable to CVR Energy $ (67.6) $ 163.9 $ 69.4 $ 14.3 $ 345.8 Interest expense, net of interest income 60.0 37.6 42.5 48.1 55.3 Depreciation and amortization 68.4
Slide 27: Consolidated Non-GAAP Financial Measures
Consolidated Non-GAAP Financial Measures Fourth Quarter Full Year Financials ($ in millions) 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Consolidated net income (loss) attributable to $ 65.9 $ 2.3 $ 345.8 $ 14.3 CVR Energy Interest expense, net of interest income 14.7 13.1 55.3 48.1 Depreciation and
Slide 28: Consolidated Non-GAAP Financial Measures
Consolidated Non-GAAP Financial Measures Fourth Quarter Full Year Financials(1) ($ in millions) 12/31/2011 12/31/2010 12/31/2011 12/31/2010 Consolidated net income (loss) attributable to $ $ $ 65.9 2.3 345.8 $ 14.3 CVR Energy FIFO impact (favorable) unfavorable (21.3) (17.8) (15.5) (19.1) Share-base
Slide 29: Petroleum Non-GAAP Financial Measures
Petroleum Non-GAAP Financial Measures Quarter Year Ended Financials ($ in millions) 12/31/2011 09/30/2011 12/31/2010 12/31/2011 12/31/2010 Operating income $ (3.3) $ 183.5 $ 60.4 $ 465.7 $ 104.6 FIFO impact (favorable), unfavorable (35.1) 4.1 (29.6) (25.6) (31.7) Share-based compensation 0.7 0.5 9.1
Slide 30: Fertilizer Non-GAAP Financial Measures
Fertilizer Non-GAAP Financial Measures Quarter Full Year Financials ($ in millions) 12/31/2011 9/30/2011 12/31/2010 12/31/2011 12/31/2010 Operating income $ 42.6 $ 37.5 $ (9.7) $ 136.2 $ 20.4 Depreciation and amortization 4.9 4.7 4.6 18.9 18.5 Other income (expense) - 0.2 - 0.2 (0.2) Share-based com