Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (January 2019)
27 slides from Cvr Energy's investor presentation, Jan 8, 2019
Slide 1: Investor Relations January 2019
Exhibit 99.1 Investor Relations January 20191
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following presentation contains forward-looking statements which are protected as forward-looking statements 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 assumpti
Slide 3: CVR Energy, Inc. (NYSE: CVI) mission and core values
CVR Energy, Inc. (NYSE: CVI) Our mission is to be a top-tier North American 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 accomplis
Slide 4: CVR Energy diversified holding company overview
CVR Energy, Inc. (NYSE: CVI) CVR Energy is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings in two limited partnerships, CVR Refining, LP and CVR Partners, LP. CVR Energy and its subsidiaries serve as the
Slide 5: CVR Refining
Slide 6: Asset Footprint
Asset Footprint Refining - 206,500 bpcd of nameplate crude distillation capacity - Located in Group 3 of PADD II Cushing & SCOOP / STACK Centric - Our refineries are strategically located. ~ 100 to 130 miles from Cushing, OK - Historical space on key pipelines - Access to domestic inland, locally ga
Slide 7: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries Crude Supply Network Marketing Network 7
Slide 8: High-Quality Refining Assets
High-Quality Refining Assets Consolidated Favorable High Distillate Yield (1) Consolidated Low Cost Operator(1) (2) 50% $7.00 l e $6.00 r 40% r a B $5.00 t u p 30% h g $4.00 u o r h $3.00 T 20% l a t o $2.00 T / 10% $ $1.00 0% $- CVRR DK VLO HFC MPC PBF MPC VLO DK CVRR PBF HFC Current Quarter Curren
Slide 9: Favorable Macro Environment
Favorable Macro Environment Feedstock Supply • Increased U.S. shale-oil production • Limited Canadian pipeline takeaway capacity • Access to price-advantaged crudes such as Permian, Canadian and Shale Product Demand • Global economies aligned for sustainable growth • Sustained product demand driven
Slide 10: Favorable Macro Environment
Favorable Macro Environment Source: Market view as of January 4, 2019 10
Slide 11: Strategic Initiatives
Strategic Initiatives • To continue and improve in all Environmental, Health and Safety matters. Safety is Job 1. Safe operation is generally a reliable operation • Leverage our strategic location and our proprietary gathering system to deliver high quality and profitable crude to our refineries. •
Slide 12: Capital Expenditures and Turnaround Expense
Capital Expenditures and Turnaround Expense $225 $225 $200 $200 $175 $175 $150 $150 s s n n o $125 o $125 i i l l l l i i M M D D S $100 S $100 U U $75 $75 $50 $50 $25 $25 $- $- 2013 2014 2015 2016 2017 2018E 2013 2014 2015 2016 2017 2018E Environmental & Maintenance Growth Turnaround Expense Note:
Slide 13: Long-Term Value Creation Projects: Benfree Unit Repositioning at Wynnewood
Long-Term Value Creation Projects Benfree Unit Repositioning at Wynnewood • Expected to improve liquid yield by 1% or 750 bpd of high octane gasoline • Total capital cost currently estimated at approximately $12 million • Expected return of 90-plus percent at $65 per barrel priced crude oil • Projec
Slide 14: Long-Term Value Creation Projects: Isomerization Unit at Wynnewood
Long-Term Value Creation Projects Isomerization Unit at Wynnewood • Intended to: • Run more SCOOP / STACK condensate crude • Improve liquid volume yield • Increase capability to produce premium gasoline • Reduce benzene content of gasoline – generate more credits • Total capital cost currently estim
Slide 15: Long-Term Value Creation Projects: Crude Optionality at Coffeyville
Long-Term Value Creation Projects Crude Optionality at Coffeyville • Phase 1 would involve changes required to allow running additional natural gasoline and or shale oil condensates processing Additional naphtha hydrotreating Additional C5 / C6 isomerization Tier III gasoline flexibility • Exp
Slide 16: CVR Partners
Slide 17: Solid Trends in Fertilizer Demand Growth
Solid Trends in Fertilizer Demand Growth Global nitrogen consumption increased Global Nitrogen Consumption by 20% between 2005 and 2015 driven 250.0 by: 200.0 s e n − Population growth n o 150.0 T n o i l l − Decrease in farmland per capita i M 100.0 − Biofuel consumption 50.0 − Continued evolutio
Slide 18: U.S Nitrogen Supply & Demand
U.S Nitrogen Supply & Demand Corn Stocks to Use Compared to Net Back Fertilizer Pricing U.S. Nitrogen Supply 16,000 14,000 12,000 10,000 ) s n o t c 8,000 i r t e m n e 6,000 g o r t i n f 4,000 o s ’ 0 0 0 ( 2,000 0 • Estimated reduced corn stocks supports improving fundamentals for corn prices -2,
Slide 19: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. U.S. Domestic Corn Use (Bushels in billions) Corn has variety of uses and 14 applications, including feed grains, 12 10 ethanol for fuel and food, seed and 8 industrial (FSI) 6 4 Feed grains 2 0 − ~96% of domestic feed grains are supplied by corn Feed / Residua
Slide 20: 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 New rail loading rack at Coffeyville increases optionality of customer markets due to greater access to BNSF delivery po
Slide 21: Key Operating Statistics
Key Operating Statistics Coffeyville East Dubuque On-Stream Factors On-Stream Factors Consolidated Feedstocks Costs(1) Consolidated Sales Revenue(1)(2) Urea Hydrogen Products 12% 7% Ammonia 25% Pet Coke 24% Natural Gas UAN 64% 68% (1) For the last twelve months ended September 30, 2018. (2) Excludes
Slide 22: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses East Dubuque East Dubuque Merger on Merger on April 1, 2016 April 1, 2016 Note: As of September 30, 2018 22
Slide 23: Appendix
APPENDIX
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA represents net income (loss) attributable to CVR Energy stockholders before consolidated (i) interest expense and other financing costs, net of interest income; (ii) income tax expense (benefit); and (iii) depreciation and amortization, less the portion of these ad
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures LTM Sept. 30, ($ in millions) 2014 2015 2016 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 2018 Net income (loss) attributable to CVR Energy Stockholders $ 174 $ 170 $ 25 $ 234 $ 201 $ 66 $ 51 $ 90 $ 408 Interest expense and other financing costs, net of interest income 39 47 83 1
Slide 26: Non-GAAP Financial Measures: Projected Logistics EBITDA
Non-GAAP Financial Measures Reconciliation of Net Income attributable to CVR Energy to Projected Logistics EBITDA USD Millions Net Income attributable to CVR Energy $ 53 - $ 59 Income tax expense 11 - 13 Depreciation and amortization 6 - 8 Projected EBITDA $ 70 - $ 80 Note: reconciliation above excl
Slide 27: Organizational Structure
Organizational Structure IEP Public 70.8% 29.2% CVR Energy, Inc. (CVI) 100% Holding Companies (1) 100% Coffeyville Resources, LLC 14.7% 100% 100% 34.4% CVR Refining Holdings, LLC CVR GP, LLC Public 100% 65.9% 65.6% CVR Refining GP, LLC CVR Partners, LP CVR Refining, LP (UAN) (CVRR) 15.5% Public Coff