Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (January 2025)
29 slides from Cvr Energy's investor presentation, Jan 7, 2025
Slide 1: Investor Presentation January 2025
Investor Presentation January 2025
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
Company Overview Petroleum Segment: ▪ Two strategically located Mid-Continent refineries close to Cushing, Oklahoma. Total nameplate capacity 206,500 bpd. ▪ Direct access to crude oil and condensate fields in the Anadarko and Arkoma Basins. ▪ Complementary logistics assets and access to multiple key
Slide 5: Strategic Priorities
Strategic Priorities Focus on EH&S Performance Preserve Cash Flow Maintain Balance Sheet & Liquidity Focus on Crude Oil Quality & Differentials Grow our Renewables Business Focusing on improvements in Environmental, Health and Safety Matters – Safety is Job #1 Consolidated Total Recordable Incident
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy 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 refining turnaround investment of $75M
Slide 7: Petroleum Segment
PETROLEUM SEGMENT
Slide 8: Asset Footprint
Asset Footprint 7 Nameplate crude oil capacity of 206,500 bpd across two refineries ▪ 3Q 2024 total throughput of 189,294 bpd, impacted by unplanned downtime related to external power supply outages ▪ FY 2023 total throughput of 208,219 bpd; Crude oil capacity utilization of approximately 92% Averag
Slide 9: Strategically Located Mid-Con Refineries Multiple Product Sales Outlets
Strategically Located Mid-Con Refineries 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 the twelve months ended September 30, 2024: ▪ Approximately 21% of refi
Slide 10: High-Quality Refining Assets
High-Quality Refining Assets Consolidated High Utilization Rates (1) Total Throughput and Production Mix(1) (1) Based on total throughputs and production for the twelve months ended September 30, 2024. (2) CVR Energy has contracted pipeline space up to 35,000 bpd but it has historically been more ec
Slide 11: Constructive Macro Environment
Constructive Macro Environment 10Source: EIA US Gasoline Demand PADD II Gasoline Demand US Diesel Demand PADD II Diesel Demand
Slide 12: Constructive Macro Environment
Constructive Macro Environment 11Source: EIA US Gasoline Inventories PADD II Gasoline Inventories US Diesel Inventories PADD II Diesel Inventories
Slide 13: Renewable Diesel Initiatives
▪ Feed pre-treater at Wynnewood began operations in March 2024. Addition of the PTU enables 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 feed
Slide 14: Renewable Diesel Initiatives KSAAT Project at Wynnewood
Renewable Diesel Initiatives 13 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 gene
Slide 15: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds 14 Note: As of September 30, 2024. 2024e and 2025e bars represent the mid-point of expected ranges. ▪ Maintenance capex estimated at $73MM to $87MM. ▪ Growth capex estimated at $37MM to $48MM. ▪ Wynnewood Alky Project accounts for a significant portion of the exp
Slide 16: Fertilizer Segment
FERTILIZER SEGMENT
Slide 17: Stable Trends in Fertilizer Supply & Demand
16 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 2024/2025 at approximately 11%. Nitrog
Slide 18: 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 2019 – 2023 average. 17 ▪ 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 19: Recent Domestic Nitrogen Fertilizer Market Conditions
▪ Summer Ammonia and UAN fill were completed in June, and Ammonia prepay for 4Q shipment was completed in early July. Demand for nitrogen looked strong going into 4Q, consistent with the buying taking place by retailers and growers in solid financial condition. Corn Belt UAN and Ammonia prices for 4
Slide 20: 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 21: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes(1) Consolidated Ammonia Utilization Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(2) (1) For the twelve months ended September 30, 2024. (2) Excludes freight and other. 20 UAN 67% Ammonia 27% Urea Products 6%
Slide 22: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses 21 ▪ Maintenance capex estimated at $35MM - $45MM. ▪ Growth capex estimated at $20MM - $25MM. ▪ Majority of planned growth capex to be funded through reserves taken over 2023 and 2024. ▪ No planned turnarounds completed in 2024. ▪ Next planned turnaround
Slide 23: Appendix
APPENDIX
Slide 24: Non-GAAP Measures Definitions
23 Adjusted EBITDA represents EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our underlying operational results of the period or that may obscure results and trends that we deem useful. Adjusted Refining Margin repre
Slide 25: Non-GAAP Financial Measures CVR Energy, Inc.
Non-GAAP Financial Measures 24 (In USD Millions) CVR Energy, Inc. 2020 2021 2022 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 LTM Net Income (loss) (320)$ 74$ 644$ 878$ 97$ 90$ 38$ (122)$ 103$ Add: Interest expense and other financing costs, net of interest income 130 117 85 52 9 20 19 18 66 Add: Income tax
Slide 26: Non-GAAP Financial Measures Petroleum Segment
Non-GAAP Financial Measures 25 Petroleum Segment (In USD Millions, except per bbl data) Refining Margin and Adjusted Refining Margin 2020 2021 2022 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 LTM Net sales 3,586$ 6,721$ 9,919$ 8,287$ 1,997$ 1,722$ 1,795$ 1,648$ 7,162$ Less: Cost of materials and other (3,2
Slide 27: Non-GAAP Financial Measures CVR Partners, LP
Non-GAAP Financial Measures 26 (In USD Millions) CVR Partners, LP 2020 2021 2022 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 LTM Net Income (loss) (98)$ 78$ 287$ 172$ 10$ 13$ 26$ 4$ 53$ Add: Interest expense and other financing costs, net of interest income 63 61 34 29 7 8 8 7 30 Add: Depreciation and amor
Slide 28: 2024 & 2025 Est. Capital Expenditures
2024 & 2025 Est. Capital Expenditures 27 (1) Includes renewables spending for the Wynnewood Refinery’s renewable feedstock pre-treater project. As of September 30, 2024, Renewables does not meet the definition of a reportable segment as defined under Accounting Standards Codification Topic 280. Main
Slide 29: Simplified Organizational Structure
CVR Energy, Inc. NYSE: CVI Icahn Enterprises L.P. & Affiliates Public CVR GP, LLC CVR Partners, LP NYSE: UAN Nitrogen Fertilizer Segment Subsidiaries Petroleum Segment Subsidiaries Public 61.5 % N-E GP Interest • Non-Economic General Partner Interest (“N-E GP Interest”) • All ownership percentages a