Cvr Partners, Lp · NYSE:UAN
Cvr Partners, Lp — Deutsche Bank US Independent Refining Conference (January 2012)
34 slides from Cvr Partners, Lp's conference presentation, Jan 5, 2012
Slide 1: Deutsche Bank US Independent Refining Conference
Exhibit 99.1 Exhibit 99.1 Deutsche January 5,Bank 2011US Independent Refining Conference
Slide 2: Forward-Looking Statements
Forward-Looking This expectations looking under Factors” obligation 1 presentation “Risk statements and to,Factors” and “Cautionary andbeliefs, should expressly Statements (including in CVR be asNote well reviewed disclaims Energy, forecasts Regarding as a number in Inc.’s any and conjunction obliga
Slide 3: Management Attendees
Management Attendees TM Jack Lipinski Chief Executive Officer Ed Morgan Executive Vice President of Investor Relations Jay Finks Director of Finance 2
Slide 4: Gary-Williams Acquisition Summary
Gary-Williams Acquisition Summary
Slide 5: Transaction Overview
CVR Gary-Williams’ – We Transaction (a) 4 Complexity $643 $643 funded increased Energy, million million the Overview closed our Inc. rating transaction inprimary isexisting balance acquired net December ofof 9.3 asset cash sheet asset primarily Gary-Williams is 15th atcash based aCVR 70,000 with atc
Slide 6: Wynnewood Refinery Summary
Wynnewood 70,000 Summary Produces Strategically Approximately – LTM Sour Butane Isobutane Mixed Sweet Diesel Jet Other Asphalt Gasoline Asset Project Logistics Crude economics differentials Rail off-take 3 Storage storage Note: 5 Access Approximately Wynnewood 9.3 97.5% Remaining Currently Fuel opti
Slide 7: Acquisition Rationale
Acquisition High Enhances – 6 Ability WTI/LLS Pro quality Located Improves forma tofinancial incredit expand Rationale and company the asset WTI/Brent highly profile increases strength CVR’s will fragmented byhave existing pricing and CVR’s expanding approximately flexibility dynamics and crude scal
Slide 8: About CVR Energy: Pro Forma Company Overview
CVR Two A – Operates Logistics Financial Pro Sour Butane Isobutane Sweet Diesel Jet Asphalt LPG Other Gasoline PADD $10 $/bbl 2Q’06 ($2) 1Q’10 10 5 Note: (a) 7 Year 115,000 70,000 Rated Current nitrogen Year Pro Fuel Forma $8 top-tier Crude 1% Energy: LTM feedstocks 8% Crude Average 36% 3Q’06 2Q’10
Slide 9: Well Positioned to Compete in Underserved PADD II
Well “Top PADD Complexity 16.0 0 Crude Capacity: Median Capacity Company(Kbpd) Marathon ConocoPhilliips(a) BP(b) HollyFrontier Valero Koch ExxonMobil Husky CVR CITGO PBF National Northern Tesoro Calumet CountryMark Somerset Total (a) Source: 8 50100% 14.0 100 Energy Positioned Quartile” PADD Energy
Slide 10: Extensive Crude Supply and Product Distribution Network
Extensive Consolidated Coffeyville Wynnewood Major 9 Canadian Crude Resources Refinery Supply Marketing Crude Oil Supply Network Refining Oil Network Pipelines and&Product Marketing CVRDistribution Crude and Oil Nitrogen Pipelines Network Fertilizer Wynnewood Related Pipelines Third-Party Crude Oil
Slide 11: Logistics and Crude Gathering Operations
Logistics Located gathering PF 0.7 2.0 GWEC 2.7 Cushing Total Operations North Bakken Montana Canada South Wyoming Minnesota DJ Colorado Utah Nebraska Iowa Wisconsin Columbia Illinois New Texas Arkansas Coffeyville Legend Crude CVR (a) 10 Under Basin Crude 0.5 Mexico 6.9 Energy Dakota Coffeyville 1.
Slide 12: Hedging Activity
Hedging CVR Production 30,000 Q1 $25.89 $27.63 $24.80 20,879 $22.90 $23.71 12,500 20% $30.00 Hedged Gross Locked $49.2 2012 Note: 11 2012 6,593 Total has Based $53.9 Margin 25,000 $25.65 $24.57 21,429 33% $25.00 Crack Activity Q2 anLocked 6,522 hedged $50.0 34% estimated on 2012 spread 20,000 21,196
Slide 13: Post-closing Value Enhancement Initiatives
Post-closing Integrate Increase – SG&A 12Ability All Expand Proximity CVR crudes synergies has ability to and existing 35,000 substitute of priced Value optimize plant toexist optimize crude barrels Enhancement off isHeavy WTI operations a oil benefit per Sour gathering Canadian day to/Initiatives w
Slide 14: Projected 2012E Synergies
Projected 2012E Synergies Crude Overall Reduce Product SG&A Miscellaneous Total (a) 13 Assumes $32.4 Rate Projected Improvements Trucked Crude &Synergies Assumptions Feedstock Increase realization Differential Sum Crude Synergies of and 4,000 Optimization /small Freight Optimizations Amount atImprov
Slide 15: Coffeyville Overview
Coffeyville Overview
Slide 16: Coffeyville Refinery Summary
Coffeyville 115,000 Summary High – Two-phase LTM Sour Sweet Other Distillate Gasoline Management’s 2005 Operational Upgrades Crude Throughput Feedstock Complexity flexibility Gathered Capacity (a) 15Access 12.9 100 Rack Bulk LTM Crude complexity (Acquisition Feedstock miles feedstocks products Crude
Slide 17: Access to Both Brent and WTI Priced Crudes
Access Both Overview Growing only 5,000 2005 Actual Other $140 3 $10 Brent-WTI Historical (thousand 400 2006 362.4 132.7 201.8 Bakken 87.6 (a) Source: 16Nov Feb Source: $5 300 400k refineries $120 2007 4,000 2011 313.1 142.3 Conventional 2008 Forecast $0 to Wood Crude 200 production WTI WTI-Brent &
Slide 18: Crude Gathered Overview
Crude Gathered Overview Growth Total $2 $/bbl 1Q’06 ($7) ($6) ($5) ($4) ($3) ($2) ($1) Refining Corporate Barrels Asset North South 15,000+ Texas Oklahoma Missouri Kansas Colorado Nebraska 17 $1 Consumed Map $0 Dakota Gathering 3Q’06 Gathered target Up Operations 7,000 Headquarters to1Q’07 10% 10,00
Slide 19: Nitrogen Fertilizer MLP
Nitrogen Fertilizer MLP
Slide 20: Strategically Located Overview
Strategically Located Overview or Fertilizer OR ND MT WA WI NE IA WY SD UT IL CA KS NM TX Additional Corporate 100,000+ LTM 19 pipeline ID MO CO NV LA MN AR Q3AZ in2011 Operations 10,000 Rail the Shipments freight OK Located Tons Total corn Distribution tocharges belt 100,000 Sold Tons Assets East (
Slide 21: Stable Pet Coke Feedstock Costs
Stable CVR Overview – US 53% 47% 2000 Consumption Abundant Texas Rail Fertilizer Corporate Source: 20PetPet OverDistribution 46% 54% 2001 coke Partners Gulf &70% Coke Oil EIA Economic Plant 56% 44% Supply Headquarters costs 2002 Coast &ofExports Net LP Gas pet 57% 43% lower 2003 Coke 2008 of Exports
Slide 22: Market Fundamentals: Farmer Profitability
Market Farmer Farmers farmer’s 8 2001 5-Yr Current Breakdown Input 7 2005 3.68 2.60 3.10 Corn 30 12 Avg. Other Seed Fixed Fertilizers *As Note: 217Month: 6 Day: 56of 3.53 2.97 Avg. Prior % and consumes 5Spot 42002 2006 Futures Costs Fixed Variable Costs Dec. Dec 34Profitability Fundamentals Total $6
Slide 23: Market Fundamentals: Strong Nitrogen Fertilizer Pricing
Market Strong Robust Historical ($ 1,000 1999 Ammonia UAN Corn Southern 5 Source: 22Yr. Yr year perAverage Avg. 2000 Belt commands $352 $312 $163 900 Ton) average Pricing global Fundamentals Green Plains UAN U.S. $283 $493 $686 800 2001 Corn Southern grain Markets 700 Environment UAN Nitrogen Ammoni
Slide 24: Financial Highlights
Financial Highlights
Slide 25: Key Historical Financial Statistics
Key$17 EBITDA $574 $122 Refining $8.91 $11.04 $20.01 $3.91 Adjusted Capital $24 $2 $3 $60 $34 Petroleum Fertilizer $596 $342 2008 UAN Note: net, expenses, (a) 24 $3 Direct depreciation $10 $36 Historical $130 $556 $382 2009 Adjusted price $8.07 $3.58 $13 Expenditures $20 Margins by Petroleum refinin
Slide 26: Key Historical Financial Statistics: Refining
KeyAdjusted $37 $235 Refining $4.34 $7.50 $9.43 $17.76 Adjusted Capital $49 $21 Total 64,282 66,515 2009 (a) (b) 25 $47 $43 Historical 2010 Throughput $3.92 64,488 Expenditures Margins EBITDA refining LTM $4.33 EBITDA refining Financial (bpd) margin and ($mm)(a) margin ($mm) Expenses represents Stat
Slide 27: Combined Operating Expenses vs. Peers
Combined Controlled CVI 2008 $3.91 $4.56 Q3’11 $3.58 $6.00 $4.48 $4.89 $5.11 $5.41 $5.82 $4.24 ALJ (a) 26 Excludes Operating GWEC 2009 $3.70 $5.00 $4.56 $4.33 LTMCompany 2010 Operating $4.00 Operating CVI turnaround. Expenses(a) LTM PF $3.00 GWEC –Expenses 3Q Expense $2.00 CVI 2011 ($/bbl) (a) PF $1
Slide 28: Appendix
Appendix
Slide 29: Pro Forma Organizational Structure
Pro Forma Public 30.3% Fertilizer 100% CVR Market Refining ~$809 Coffeyville Wynnewood Represents 28 Energy, Partners, GP mm shareholders unitholders LP cap: business business 69.7% Organizational Acquisition LTM Resources, Refinery ~$2.2 ~$1.8 Refinery Inc. LPEBITDA LPNYSE: bn(Coffeyville, (GWEC) L
Slide 30: Non-GAAP Financial Measures
Non-GAAP To GAAP-based periods The with bases 29 supplement Company related financial and are Financial GAAP results. believes the and alsoactual operational financial indicators The Measures that results use the measures ofthat planning presentation in non-GAAP accordance management (i)decisions, t
Slide 31: Non-GAAP Financial Measures: EBITDA Definitions
Non-GAAP EBITDA: in needed first-in, not First-in, resulting end 30 EBITDA be of substituted the in first-out first-out inorder EBITDA accounting favorable are Financial derived to (FIFO), (FIFO): for evaluate represents operating FIFO period. Measures from net The results impacts unrealized amounts
Slide 32: Non-GAAP: CVR LTM Adjusted EBITDA
Non-GAAP CVR LTM Interest Depreciation Income EBITDA Unrealized FIFO Share Loss Major Other Consolidated Fertilizer Adjusted 31 on 9/30/2011 9/30/11 impact based non-cash turnaround expense, tax disposal extinguishment Adjusted adjustments EBITDA (gain)/loss expense Financial compensation (favorable
Slide 33: Non-GAAP: CVR Petroleum and Fertilizer EBITDA
Non-GAAP CVR Petroleum: Petroleum FIFO Realized Goodwill Fertilizer: Fertilizer Share-based Loss Major Depreciation Other Adjusted 32 on Adjusted impact income scheduled disposal gain EBITDA operating impairment 2008 operating 2008 Financial compensation(10.8)(3.7) compensation(10.6) (favorable) and
Slide 34: Non-GAAP: GWEC Adjusted EBITDA
Non-GAAP GWEC GWEC: Net Income Interest Depreciation Hedge Turnaround Non-cash Other Adjusted (a) 33 Includes income unusual mark Adjusted taxes—— expense 2009 EBITDA inventory (loss) amortization Financial disposal to and 2010 or market (net) non-recurring EBITDA amortization $52.5 $36.8 LTM loss o
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