Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (June 2023)
30 slides from Cvr Energy's investor presentation, Jun 20, 2023
Slide 1: Investor Presentation June 2023
Investor Presentation June 2023
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
Petroleum Segment Fertilizer Segment 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, the energy transition, and lower carbon em
Slide 5: Strategic priorities: crude gathering and EH&S focus
Leveraging our strategic location and proprietary gathering system to deliver high value neat crude oils to our refineries Gathering volumes in 1Q 2023 averaged approx. 139,000 bpd, which is an increase of 12,000 bpd from 1Q 2022. Working to further increase volumes and reduce purchases of Cushing W
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Non-Discretionary Asset Continuity 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 ref
Slide 7: ESG Highlights
GovernanceSocial Environmental ESG Highlights o Renewable diesel unit start-up at the Wynnewood Refinery in April 2022. o Wynnewood Refinery feedstock pre-treatment unit (“PTU”) construction & installation expected to be complete in late third quarter of 2023. o Average reduction of 1 million metric
Slide 8: Petroleum Segment
PETROLEUM SEGMENT Se —
Slide 9: Asset Footprint
Asset Footprint 8 Mid-Continent Refineries Nameplate crude oil capacity of 206,500 bpd across two refineries • 1Q 2023 total throughput of 196,494 bpd, impacted by the planned turnaround at Coffeyville • FY 2022 total throughput of 205,288 bpd; Crude oil capacity utilization of approximately 92% Ave
Slide 10: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries 9 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 YTD 2023 through May: ➢ Approximately 20% of refined product sales
Slide 11: High-Quality Refining Assets
Gasoline 53% Distillate 40% Other (5) 7% Regional Crude 50% Cushing WTI 17% Condensate 13% Midland WTI, WTL & WTS 2% Heavy Canadian (3) 3% Other (4) 15% High-Quality Refining Assets Consolidated High Utilization Rates Total Throughput and Production Mix(1) Consolidated Top Tier Refining Margin(1) Co
Slide 12: Constructive Macro Environment: Demand
Constructive Macro Environment 11Source: EIA US Gasoline Demand PADD II Gasoline Demand US Diesel Demand PADD II Diesel Demand
Slide 13: Constructive Macro Environment: Inventories
Constructive Macro Environment 12Source: EIA US Gasoline Inventories PADD II Gasoline Inventories US Diesel Inventories PADD II Diesel Inventories
Slide 14: Constructive Macro Environment: Crack Spreads
Constructive Macro Environment 13Source: MarketView as of June 15, 2023 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) WCS – WTI Differential ($/bbl)RVO-Weighted RINs ($/bbl) Group 3 Crack Spreads ($/bbl)
Slide 15: Renewable Diesel Initiatives
• Construction is underway on a feed pretreater at Wynnewood that would enable 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 feedstock supply.
Slide 16: Renewable Diesel Initiatives: KSAAT Project at Wynnewood
Renewable Diesel Initiatives 15 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 ge
Slide 17: Capital Expenditures and Turnarounds
$0 $50 $100 $150 $200 $250 2018 2019 2020 2021 2022 2023e $ M Environmental & Maintenance Growth Capital Expenditures and Turnarounds 16Note: As of March 31, 2023. Shaded areas indicate the top end of capital expenditure estimates. 2023 Petroleum Segment and RDU Capex of $161M - $182M Environmental
Slide 18: Fertilizer Segment
FERTILIZER SEGMENT
Slide 19: Stable Trends in Fertilizer Supply & Demand
18 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 2022/2023 at approximately 10%, one of
Slide 20: 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 2018 – 2022 average. 19 ➢ 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 21: Recent Domestic Nitrogen Fertilizer Market Conditions
2 0 2 2 Summer 20 ➢ NOLA UAN fill price $400 - $420/ton for Q3 shipment. Ammonia fill price $900 - $950/ton for Q3 shipment. Anticipating strong Fall application of ammonia as growers evaluate input costs for 2023. ➢ Skyrocketing natural gas prices in Europe caused a significant amount of European f
Slide 22: Company-Owned Nitrogen Fertilizer Facilities
➢ 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 23: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes(1) Consolidated Ammonia Utilization(2) Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(3) (1) For the twelve months ended March 31, 2023. (2) Twelve months ended March 31, 2023 utilization impacted by planned turnarounds at both
Slide 24: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses 23 2023 Total Capex budget of $32M - $35M Environmental and Maintenance spending estimated at $29M - $31M. Growth capex estimated at $3M - $4M. 2023 No Turnaround spending planned ➢ Coffeyville and East Dubuque planned turnarounds were completed on schedu
Slide 25: Appendix
APPENDIX
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures 25 Adjusted EBITDA – EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends. Direct Operating Expenses per Throughput
Slide 27: Non-GAAP Financial Measures: Petroleum Segment
Non-GAAP Financial Measures 26Note: All amounts on this slide are adjusted for the turnaround accounting change effective in 1Q 2019. These amounts are unaudited. Petroleum Segment (In USD Millions) CVR Energy, Inc. 2019 2020 2021 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 TTM Net Income 362$ (320)$ 74$ 6
Slide 28: Non-GAAP Financial Measures: CVR Partners, LP
Non-GAAP Financial Measures 27 (In USD Millions) CVR Partners, LP 2019 2020 2021 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 TTM Net Income (loss) (35)$ (98)$ 78$ 287$ 118$ (20)$ 95$ 102$ 295$ Add: Interest expense and other financing costs, net of interest income 62 63 61 34$ 8 8 8 7 31 Add: Depreciation
Slide 29: 2023 Estimated Capital Expenditures
2023 Estimated Capital Expenditures 28 (1) Renewables reflects spending on the Wynnewood Refinery’s renewable feedstock pretreater project. As of March 31, 2023, 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”) 29.2 %