CVR Energy Inc. · NYSE:CVI
CVR Energy — Investor Presentation (June 2022)
31 slides from CVR Energy's investor presentation, June 2022
Slide 1: Investor Presentation
Investor Presentation June 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains f orward-looking statements (“FLS”) which are protected as FLS und er the PSLRA, and which ar e based on man agement’s current expectations and belief s, as well as a number of assumptions concerning f uture ev ents. The assumptions and estimates
Slide 3: Mission and Values
Mission and Values Our mission is to be a top tier North American renewable fuels, 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 a
Slide 4: Company Overview
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. CVR Energy’s Petroleum segment is comprised of two Mid-Continent complex refine
Slide 5: Strategic Priorities
Strategic Priorities Focus on Continuing to improve in all Environmental, Health and Safety matters – Safety is Job #1 EH&S Petroleum Segment had no recordable incidents in 1Q 2022, representing a 100% reduction from 1.7 in 1Q 2021. Fertilizer segment had no Performance process safety incidents or r
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Key Priorities • Create long-term value through safe, reliable operations and continuously optimizing core refining, renewables, fertilizer and associated logistics assets; • Invest in high return projects that are complimentary to existing assets, improve feedstock suppl
Slide 7: ESG Highlights
ESG Highlights Environmental o Renewable diesel unit start-up at the Wynnewood Refinery in April 2022. o Wynnewood Refinery feedstock pretreater construction & installation expected to be in the second quarter of 2023. o Board approved process design study for the potential conversion of an existing
Slide 8: Petroleum Segment
PETROLEUM SEGMENT
Slide 9: Asset Footprint
Asset Footprint Mid-Continent Refineries Nameplate crude oil capacity of 206,500 bpd across two refineries • 1Q 2022 total throughput of 197,344 bpd, impacted by the planned turnaround at Wynnewood • FY 2021 total throughput of 209,084 bpd Average complexity of 10.8 Located in Group 3 of PADD II Cru
Slide 10: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries Marketing Network Optionality ➢ Marketing activities focused in central mid-continent area via rack marketing, supplying nearby customers and at terminals on third-party distribution systems. ➢ Rack marketing enables the sale of blended products, allowing CVR
Slide 11: High-Quality Refining Assets
High-Quality Refining Assets Consolidated Top Tier Refining Margin (1) Consolidated Low-Cost Operator(2) Peer group includes: Delek US Holdings, HF Sinclair, Marathan Petroleum, Par Pacific , PBF Energy, Phillips 66 and Valero Consolidated High Utilization Rates Total Throughput and Production Mix (
Slide 12: Constructive Macro Environment
Constructive Macro Environment US Gasoline Demand Magellan System Gasoline Demand US Diesel Demand Magellan System Diesel Demand Source: EIA, Magellan 11
Slide 13: Constructive Macro Environment
Constructive Macro Environment US Gasoline Inventories Magellan System Gasoline Inventories US Diesel Inventories Magellan System Diesel Inventories Source: EIA, Magellan 12
Slide 14: Constructive Macro Environment
Constructive Macro Environment 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) RVO-Weighted RINs ($/bbl)1 WCS – WTI Differential ($/bbl) Midland-Cushing and WTL-WTI Differentials ($/bbl) (1) 2Q 2022 represents QTD pricing through June 16, 2022 Source: MarketView as of June 16, 2022 13
Slide 15: Expanding into Renewable Biofuels
Expanding into Renewable Biofuels(1) Over the next year, we plan to restructure our business to segregate our renewable operations. • Conversion of the existing hydrocracker at Wynnewood to renewable diesel service and retooling Renewable Diesel the refinery for maximum condensate processing. Phase
Slide 16: Renewable Diesel Initiatives
Renewable Diesel Initiatives KSAAT Project at Wynnewood Wynnewood Hydrocracker Conversion(1) Renewable Diesel Margin Proxy Project Highlights: • Converted 19,000 BPD hydrocracker at Wynnewood to process 100 million gallons per year of washed and bleached soybean oil or pre-treated corn oil to produc
Slide 17: Renewable Diesel Initiatives
Renewable Diesel Initiatives Wynnewood Phase 1(1) Project Economics KSAAT Project at Wynnewood • Renewable diesel margins impacted by several factors: • Crude oil price and spread between ULSD and Soybean oil (HOBO spread) • RINs prices (1.7 D4 Biodiesel RINs generated per gallon of renewable diesel
Slide 18: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds $250 2022 Petroleum Segment and RDU Capex of $164M - $188M $200 Environmental and Maintenance spending estimated at $88M to $98M for FY22. $150 $M Growth capex estimated at $76M to $90M. $100 ➢ Substantially all budgeted growth capital spending for $50 2022 is re
Slide 19: Fertilizer Segment
FERTILIZER SEGMENT ee at | See ee af ; THES fae | nak
Slide 20: Stable Trends in Fertilizer Supply & Demand
Stable Trends in Fertilizer Supply & Demand Corn Stocks to Use US Nitrogen Supply ➢ Fertilizers typically represent approximately 15% ➢ Major global nitrogen capacity build cycle largely of farmers’ cost structure and significantly improve complete in 2017/2018, and additional tons have yields. been
Slide 21: Recent Domestic Nitrogen Fertilizer Market Conditions
Recent Domestic Nitrogen Fertilizer Market Conditions ➢ Corn prices continued to increase from the winter, reaching over $7/bu driven by strong Chinese and domestic ethanol demand, expectations for low US carryout and poor South American crop conditions ➢ Urea prices rallied across the globe and UAN
Slide 22: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. ➢ Corn has a variety of uses and applications, U.S. Domestic Corn Use including feed grains, ethanol for fuel and food, 14.0 seed and industrial (FSI). 12.0 ➢ Feed grains 10.0 (Bushels in billions) ▪ ~96% of domestic feed grains are supplied 8.0 by corn. 6.0 4.0 ▪
Slide 23: 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 pricing. ➢ Rail loading rack at Coffeyville provides significant logistics optionality west of the Mississippi River due
Slide 24: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes (1) Consolidated Ammonia Utilization (2) 1,400 89% 88% 88% 1,200 87% 1,000 85% Thousand tons 800 83% 600 81% 400 79% 200 77% 0 75% 2018 2019 2020 2021 TTM 2022 Three Months Ended March 31, Ammonia (gross produced) Ammonia (net avail. for sale)
Slide 25: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses $45 2022 Total Capex budget of $38M - $42M $40 $35 Environmental and Maintenance spending estimated at $30 $36M - $39M. $25 Growth capex estimated at $2M - $3M. $M $20 $15 $10 $5 $0 2017 2018 2019 2020 2021 2022e Maintenance Growth $30 2022 Turnaround spe
Slide 26: Appendix
APPENDIX
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 Bar
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Energy, Inc. 2017 2018 2019 2020 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 TTM Net Income $ 258 $ 366 $ 362 $ (320) $ 74 $ (2) $ 106 $ 25 $ 153 $ 282 Add: Interest expense and other financing costs, net of interest income 109 102 102 130 117 38 23 24 24 1
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Partners, LP 2017 2018 2019 2020 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 TTM Net Income (loss) $ (73) $ (50) $ (35) $ (98) $ 78 $ 7 $ 35 $ 61 $ 94 $ 197 Add: Interest expense and other financing costs, net of interest income 63 62 62 63 $ 61 23 11 11 10
Slide 30: 2022 Estimated Capital Expenditures
2022 Estimated Capital Expenditures 2021 Actual 2022 Estimate (1) Maintenance Growth Total Maintenance Growth Total Low High Low High Low High Petroleum $ 47 $ 3 $ 50 $ 88 $ 98 $ 3 $ 7 $ 91 $ 105 (2) Renewables - 148 148 - - 73 83 73 83 Nitrogen Fertilizer 16 10 26 36 39 2 3 38 42 Other 2 - 2 7 9 -
Slide 31: Simplified Organizational Structure
Simplified Organizational Structure Public Icahn Enterprises L.P. and Affiliates 29% 71% CVR Energy, Inc. (NYSE:CVI) Wynnewood Insurance Corporation CVR Energy Holdings, Inc. CVR Aviation, LLC New Entities for Renewables Public Restructuring 34.1% 65.9% CVR Services, LLC CVR GP, LLC CVR Refining GP,