Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Credit Suisse Global Energy Conference 2012
33 slides from Cvr Energy's conference presentation, Feb 8, 2012
Slide 1: Credit Suisse Global Energy Conference
Credit Suisse Global Energy Conference February 8, 2012 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation should be reviewed in conjunction with CVR Energy, Inc.’s Third Quarter earnings conference call held on November 3, 2011. The following information contains forward-looking statements based on management’s current expectations and beliefs, as well as a number of assumptions concer
Slide 3: Management Attendees
Management Attendees Jack Lipinski Chief Executive Officer Ed Morgan Executive Vice President of Investor Relations Jay Finks Director of Finance
Slide 4: Company Overview
Company Overview
Slide 5: CVR Energy: About Us
CVR Energy: About Us Pro Forma Company Overview Two top-tier Mid-Continent refineries – 115,000 bpd Coffeyville, Kansas refinery – 70,000 bpd Wynnewood, Oklahoma Refinery A nitrogen fertilizer plant using pet coke gasification (CVR Partners LP) – Rated capacity of 1,225 tpd ammonia; 2,025 tpd UAN Ni
Slide 6: Well Positioned to Compete in Underserved PADD II Region
Well Positioned to Compete in Underserved PADD II Region (b) Includes 50% interest in JV in Toledo, OH refinery. Source: EIA and Wall Street research PADD II Consolidated Refinery Statistics – By Owner “Top Quartile” Consolidated Asset Profile PADD II Refiners
Slide 7: Key Business Drivers
Key Business Drivers (1) Adjusted for major scheduled turnaround, third-party outage on air separation unit and UAN vessel rupture
Slide 8: Utilization by PADD
Utilization by PADD Source: Magellan
Slide 9: CVR Energy total shareholder return
CVR Energy total shareholder return Note: Market data as of February 3, 2012. Peer index equal weighted and includes ALJ, DK, HFC, TSO and WNR. CVI IPO price is based on closing price of the first day of trading. Source: Capital IQ Refiners relative total return performance CVI Refining peers S&P 50
Slide 10: Shareholder Value Focused
Shareholder Value Focused Since IPO, CVR Energy is #1 in total return among refining peers (a) and remains focused on creating value for shareholders Building the business Responsive to opportunities Improving financial strength Increased total refining capacity to 185 kbpd Integrating Wynnewood acq
Slide 11: Refining Business
Refining Business
Slide 12: Extensive Crude Oil Supply and Product Distribution Network
Extensive Crude Oil Supply and Product Distribution Network Consolidated Supply Network Consolidated Marketing Network
Slide 13: Logistics Drives Profitability
Logistics Drives Profitability Logistics Overview Operations Map (a) Under construction. Located 100 miles from the global crude hub of Cushing, CVR has access to global crudes with storage to optimize purchasing and crude slates Shipper status of 35,000 bpd on Spearhead and Keystone Pipelines 40,00
Slide 14: Access to WTI Priced Crudes
Access to WTI Priced Crudes Overview Historical & Projected Canadian Production Historical & Projected Bakken Crude Production (a) Source: Canadian Association of Petroleum Producers June 2011 publication. Source: Wood Mackenzie Upstream Service database Both refineries benefit from the current WTI-
Slide 15: ese bars in ions
ese bars in ions $/ bbl sta) $(2) $(3) sia) $(5) $6) s(7) pean er | | sasco & “ i nH sno | i i i | ~ ll a ” mms ay2t1 me 7/2,/11 SN OL/31/12 er Had Crack Spread Group 3 Product Basis Ju'12 Aug'lL Sep"12 Out"22 Nov'l Dee '12 Jan ‘32 $/bbt $25 NYMEX 2-1-1 mii/2e/1 m12/31/11 01/21/12 2012 Urealized Gai
Slide 16: Crude Gathering
Crude Gathering Missouri Nebraska Overview Asset Map Total Consumed Crude Discount to WTI Gathered 7,000 bpd in 2005 Today gathering over 40,000+ bpd Growth target 10% – 20% per year for the next 2 – 5 years Texas Oklahoma Kansas Colorado South Dakota North Dakota
Slide 17: Crude Gathering System
Crude Gathering System Phillipsburg Valley Center Station Winfield (Gathering South) Plainville (Gathering North) Hooser Station Broome Station Humboldt (Gathering South) Coffeyville East Tank Farm Cushing Plains/TEPPCO Bartlesville (Gathering South) Shidler (Gathering South) 55k 2,700k Capacity 17,
Slide 18: Nitrogen Fertilizer MLP
Nitrogen Fertilizer MLP
Slide 19: Strategically Located Assets and Logistics
Strategically Located Assets and Logistics Overview Fertilizer Operations Located in the corn belt (on Union Pacific mainline) 45% of corn planted in 2010 was within $35/UAN ton freight rate of our plant $25/ton transportation advantage to corn belt vs. US Gulf Coast No intermediate transfer, storag
Slide 20: Stable & Economic Feedstock
Stable & Economic Feedstock Overview Abundant Supply of Third-party Pet Coke US Pet Coke Exports and Consumption Source: EIA CVR Partners LP 2008 – 2010 average daily coke demand ~ 1,378 tons/day Coke gasification technology uses petroleum coke as a feedstock – Pet coke costs lower than natural gas
Slide 21: Market Fundamentals: Farmer Profitability Supports Fertilizer Pricing
Market Fundamentals Farmer Profitability Supports Fertilizer Pricing Corn consumes the largest amount of nitrogen fertilizer Farmers are expected to generate substantial proceeds at currently forecasted corn prices Farmers are still incentivized to apply nitrogen fertilizer at corn prices lower than
Slide 22: Market Fundamentals: Strong Pricing Environment
Market Fundamentals Strong Pricing Environment ($ per Ton) Historical U.S. Nitrogen Fertilizer Prices 1,000 Ammonia $686 UAN $352 Southern Plains Ammonia Corn Belt UAN 5-Yr Average Southern Plains Ammonia Source: Green Markets Data, Fertecon 5 Yr. Avg. UAN $163 5-Yr Average Corn Belt UAN 5 Yr. Avg.
Slide 23: Financial Highlights
Financial Highlights
Slide 24: Key Historical Financial Statistics CVR Energy Standalone
Key Historical Financial Statistics CVR Energy Standalone EBITDA by Operating Segment ($mm) Capital Expenditures ($mm) Refining Margins and Expenses ($/bbl) Fertilizer Prices ($/Ton)
Slide 25: Key Historical Financial Statistics Gary Williams Standalone
Key Historical Financial Statistics Gary Williams Standalone Adjusted EBITDA ($mm) (a) Capital Expenditures ($mm) Refining Margins and Expenses ($/bbl) Total Throughput (bpd) (a) Adjusted EBITDA represents GWEC operating income adjusted for FIFO impacts, major scheduled turnaround expenses, realized
Slide 26: Combined Company – Controlled Operating Expenses
Combined Company – Controlled Operating Expenses CVI Operating Expenses (a) ($/bbl) LTM Q3 ‘11 Operating Expense ($/bbl) (a) Excludes turnaround. CVI PF GWEC based on weighted average crude throughput. (b) HFC combined results from legacy companies 3Q report.
Slide 27: Appendix
Appendix
Slide 28: Pro Forma Organizational Structure Coffeyville Resources, LLC
Pro Forma Organizational Structure Coffeyville Resources, LLC CVR Energy, Inc. NYSE: CVI Market cap: ~$2.2 bn Fertilizer business CVR Partners, LP NYSE: UAN Market cap: ~$1.8 bn Refining business ~$809 mm LTM EBITDA Public shareholders Public unitholders 100% 100% 100% GP 69.7% LP 30.3% LP Wynnewood
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the actual results in accordance with U.S. generally accepted accounting principles (GAAP), for the applicable periods, the Company also uses certain non-GAAP financial measures as discussed below, which are adjusted for GAAP-based results. The use of non-GA
Slide 30: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) EBITDA: EBITDA represents net income before the effect of interest expense, interest income, income tax expense (benefit) and depreciation and amortization. EBITDA is not a calculation based upon GAAP; however, the amounts included in EBITDA are derived from amou
Slide 31: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) CVR 9/30/11 LTM Adjusted EBITDA ($mm) LTM 9/30/2011 Consolidated Net Income $282.2 Interest expense, net of interest income 53.8 Depreciation and amortization 88.1 Income tax expense 181.5 EBITDA adjustments included in NCI (3.4) Unrealized (gain)/loss on derivat
Slide 32: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) CVR Adjusted EBITDA ($mm) Petroleum: LTM 9/30/2011 Petroleum operating income $31.9 $170.2 $104.6 $529.5 FIFO impact (favorable) unfavorable 102.5 (67.9) (31.7) (30.4) Share-based compensation (10.8) (3.7) 11.5 17.1 Loss on disposal of fixed assets - - 1.3 1.5 Ma
Slide 33: Non-GAAP Financial Measures (cont'd)
Non-GAAP Financial Measures (cont’d) (a) Includes disposal of assets, asset impairments, discontinued operations and fire related adjustments. GWEC Adjusted EBITDA ($mm) GWEC: LTM 9/30/2011 Net income (loss) $52.5 $16.1 $161.6 Income taxes - - - Interest expense (net) 12.9 22.4 28.6 Depreciation and
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