Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Q3 2012 Earnings Presentation
26 slides from Cvr Energy's earnings presentation, Nov 6, 2012
Slide 1: 3rd Quarter Earnings Report
Exhibit 99.1 3rd Quarter Earnings Report
Slide 2: Forward-Looking Statements
Forward-Looking forward- other materially Form Reports 2reviseimportant 10-Q any on looking from forward-looking form and any factors. those 10-Q statements Statements other expressed and You filings any statements, are based This other cautioned or CVR presentation on implied filings management’s E
Slide 3: Third Quarter Results
Consolidated EBITDA(1) + 3Non-GAAP 6% CVR Partners reconciliation $Results 471.1 Distributions $Third 258.4 on Quarter +slide 82% $23 0.496 Third $1,064.9 Non-GAAP Quarter $ 0.572—13% $ 603.4 Third reconciliation + 76% Quarter $ 1.619 Adjusted Year on $ 0.979 slide to netDate 24 N/A income Non-GAAP
Slide 4: Crude Oil Differentials
Crude WTI 423.85 Differentials vs. WTSSource: ($3.39)ProphetX ($4.70) (6.75) (1) As WTI of October vs. LSB31, ($4.17) 2012($13.26) Third Quarter (6.63)Third Quarter Third Quarter Q3 Average Q3 High Current(1) WTI vs. WCS ($15.79) ($29.16) (29.33) WTI vs. Brent $17.58 $22.02
Slide 5: Market Environment - Petroleum: Brent-WTI Differential
Market $45 Nov-10 NYMEX 5Brent-WTI $40Environment—Petroleum Mar-11 $35 2-1-1 Differential $30Crack Aug-11 $25 $20Dec-11 $15 $10 Apr-12 (1) $5 As $0Jul-12 of October Oct-1231, 2012 2010 2011 Q3 2012 Current Average Differential $ 0.77 $ 15.89 $ 17.58 $ 23.85
Slide 6: Market Environment - Petroleum: 2-1-1 Crack Spread
Crack $50 Yrly Q3 Last NYMEX 6Current 2012 $45 Month Avgs Spread $40 211 CL, Trendline $35 Crack, vs. $/Bbl $30 Historical $25 $20Norm $15 Note: $10 $5The $0 trendline does not include 2011
Slide 7: Commodity Hedging
Hedging Commodity First Second Third Fourth Total (1) 7(2) As Weighted-average Quarter 26,325,000 Quarter of Quarter Quarter Position September Swaps 2013 2013 2012 2013 2013 25.05 (1) 6,375,000 Barrels 5,175,000 30, 5,850,000 3,525,000 5,400,000 price 2012 Fixed of24.95 all 25.31 23.50 24.66 26.85
Slide 8: Market Environment - Fertilizer
Market UAN, $800 $200 $300 $400 $500 Sep 10 11 Mar Jun Urea UAN Ammonia CVRP 8Source: Dec Mar 11 12 10 12 $700 $100 Ammonia Plant Sep Dec 11 Environment—Fertilizer Green $600 $0 12 Gate Markets &Pricing—UAN Pricing—Ammonia Urea Prices
Slide 9: Financial
Financial
Slide 10: Financial Results Third Quarter
Financial 23 Third (In Net Earnings EBITDA(1) Adjusted share(3) CVR 10 Non-GAAP millions, earnings stockholders Partners Quarter $per EBITDA(2) net Results 3.00 $except diluted attributable income Year 386.5 Distributions reconciliation $ 1.57 Note: $to for $share 208.9 per Date $211.8 EPS/EPU) Adju
Slide 11: Coffeyville Refinery Segment
Coffeyville (In barrels Net SG&A Barrels (barrels Refining barrel) Direct (per Dir. Throughput) Crude Turnaround Operating $400 $250 $100 Q3 Inc. 11 millions 2011 Sales FIFO, Op. crude Barrel $350 millions $50 Throughput) Oil Operating (1)(2) sold $Sold per Ex. Refining 10.6 margin $0 $Throughput In
Slide 12: Wynnewood Refinery Segment
Wynnewood barrels Net Operating SG&A Crude Barrels day) (barrels Refining (per Direct Barrel Dir. Throughput) 12 Sales Op. crude Oil Operating of sold $Sold per Ex. 8.8 margin Crude $Throughput Income oil 772.8 day) data) (per 68,311 $Refinery Less: throughput 2.1 Throughput) Barrel Expenses Q3 $$Tu
Slide 13: Nitrogen Fertilizer Segment
Nitrogen (in sold Net Adjusted SG&A Pet On-streamstre Gasification Ammonia UAN Operating $40 $25 $10 Q3 Inc. 13 millions 2012 2011 Coke Sales $35 millions $5 Price data) ASP Sales 96.9% $$0 $30 Aver. Q2 5.1 Fertilizer EBITDA(1) Cost $Cost ASP Income Earnings Sales 98.4% (per (000 75.0 except 99.1% 2
Slide 14: Debt and Financial Metrics
Debt Metrics Financial Metrics 2007 2008 2009 2010 2011 Q3 2012 LTM Debt to Capital 54% 46% 43% 41% 43% 36% Debt to Adj. EBITDA 3.8 2.3 2.4 2.5 1.2 0.8 14 Note: Refer to slide 21 for metrics used in 14 calculations
Slide 15: Appendix
Appendix
Slide 16: Non-GAAP Financial Measures
Non-GAAP financial the utilized investors view (iii) 16 overall presents of by the measures regarding understanding the Company’s Financial measurements Company as thediscussed Measures Company’s core are ofthat the operations notbelow, Company’s investors To necessarily financial supplement which a
Slide 17: EBITDA and Adjusted EBITDA definitions
EBITDA: however, segment turnaround extinguishment be cause oil 17 utilized prices fluctuations adjusted the decrease. EBITDA as expense, amounts a supplemental offor in debt, The represents the the items included FIFO and impact inventory that other measure impact net in the of income EBITDA income
Slide 18: Refining margin definitions
Refining is Each refining we oil performance. calculated fluctuations prices cost companies 18 athroughput utilize non- ofofdecrease. product the margin GAAP margin the as in components inthe Non-GAAP our total barrel the sold may Refining measure :difference industry, Refining inventory dollar (tak
Slide 19: Coffeyville Refining Margin
Coffeyville Purchased (1.09) RINS, 19 (2.32) sulfur crude Refinery($ (1.64) credits, discount Other ethanol, per2.56 2.54 crude transportation, 4.39 4.81 oil 3.48 (0.17) throughput Group Refining hydrogen. 3barrel) basis margin Quarter 3.87 Coffeyville (adj. (0.54) Quarter for1.25 Margin FIFOQuarter
Slide 20: Wynnewood Refining Margin
Wynnewood $2.69 25.23 Group Impact 3Refinery($ basis of our 3.87 refinery (0.54) per crude producing Liquid oil throughput Volume otheryield products barrel) loss in Quarter (3.57) addition (3.61) Quarter to Yield gasoline Wynnewood structure and distillate. difference(1) Refinery($ Wynnewood per (4
Slide 21: Financials and Debt Capital Structure
Financials($ $Debt Partners acquisition 21692.0 500.8 $LP, 1,126.3 and 495.9 which in millions) integration 491.3 Note: has a477.0 2011 separate Full costs, Year includes 853.9 and capital Full 850.9 bridge debt Year structure Net related loan Full Debt Year expenses Adjusted to470.3 acquisition Ful
Slide 22: Non-GAAP Financial Measures: EBITDA reconciliation
Consolidated income 121.7 impairment42.8 extinguishment 218.1 22 Income $ (loss) 206.8Non-GAAP attributable tax $ of 192.0 Unrealized expense debt$1.3 692.0 to Financial (benefit) 10.0 (gain)/loss CVR $1,126.3 2.1Energy (88.5) 16.6 Measures on2.1Major $all 63.9 (67.6) derivatives Financials 29.2$sch
Slide 23: Non-GAAP Financial Measures: Adjusted EBITDA
Consolidated income 127.6 derivatives proxy 23 68.6 matter (loss) 209.0 115.7 44.2Expenses Non-GAAP attributable 172.5 10.0 197.0 EBITDA to Financial related CVR 6.8 Share-based adjustments Energy toMeasures Gary$Williams 208.9 compensation included Financials($ $ 109.3 acquisition in NCI $in 6.5 33
Slide 24: Adjusted Net Income per Diluted Share
Consolidated income Loss acquisition integration 24 on (loss) disposition expenses of Non-GAAP attributable Gary-Williams(2) ofrelated assets to Financial to CVR 0.9 acquisition 1.2 Major Energy Measures 6.2 scheduled Adjusted $of208.9 Gary-Williams Financials(1)($ Net turnaround $ 109.3 Income $ 33
Slide 25: Petroleum Segment Adjusted EBITDA
Financials($ based Adjusted 25 compensation EBITDA in millions) $ 2.3 444.2 5.4 Quarter $0.8 381.4 Major Quarter $ 232.0 scheduled Quarter Petroleum turnaround Financials($ Non-GAAP expense in millions) Financial 11.1 2.5 9/30/2012 Measures 8.0 Realized 6/30/2012 gain (loss) 9/30/2011 on derivatives
Slide 26: Fertilizer Segment Adjusted EBITDA
Financials($ Depreciation 43.3 26 $ 121.1 in $and 114.0 millions) amortization Fertilizer QuarterNon-GAAP 5.2Quarter 5.2 4.7Quarter 15.8 Financial 13.9 Year Other Measures to Date income Year(expense) to Date Financials($ 0.1 0.2 0.1 0.1 in millions) Major scheduled 9/30/2012 turnaround 6/30/2012 ex