Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (March 2023)
31 slides from Cvr Energy's investor presentation, Mar 6, 2023
Slide 1: Investor Presentation March 2023
Investor Presentation March 2023
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
Petroleum Segment Fertilizer Segment 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, the energy transition, and lower carbon em
Slide 5: Strategic priorities: gathering, EH&S, capital discipline
Leveraging our strategic location and proprietary gathering system to deliver high value neat crude oils to our refineries Gathering volumes in FY 2022 averaged approx. 120,000 bpd, which is an increase of 9,000 bpd from FY 2021. Working to further increase volumes and reduce purchases of Cushing WT
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Non-Discretionary Asset Continuity 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 ref
Slide 7: ESG Highlights
GovernanceSocial Environmental ESG Highlights 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 third quarter of 2023. o Average reduction of 1 million metric tons per year of carbon d
Slide 8: Petroleum Segment
PETROLEUM SEGMENT Se —
Slide 9: Asset Footprint
Asset Footprint 8 Mid-Continent Refineries Nameplate crude oil capacity of 206,500 bpd across two refineries • 4Q 2022 total throughput of 220,689 bpd • FY 2022 total throughput of 205,288 bpd, impacted by the planned turnaround at Wynnewood Average complexity of 10.8 Located in Group 3 of PADD II C
Slide 10: Strategically Located Mid-Con Refineries Marketing Network
Strategically Located Mid-Con Refineries 9 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 C
Slide 11: High-Quality Refining Assets
High-Quality Refining Assets Consolidated High Utilization Rates Total Throughput and Production Mix(1) Consolidated Top Tier Refining Margin(1) Consolidated Low-Cost Operator(2) (1) Based on total throughputs and production for the last twelve months ended December 31, 2022. Excludes publicly discl
Slide 12: Constructive Macro Environment: Demand
Constructive Macro Environment 11Source: EIA US Gasoline Demand PADD II Gasoline Demand US Diesel Demand PADD II Diesel Demand
Slide 13: Constructive Macro Environment: Inventories
Constructive Macro Environment 12Source: EIA US Gasoline Inventories PADD II Gasoline Inventories US Diesel Inventories PADD II Diesel Inventories
Slide 14: Constructive Macro Environment: Crack Spreads and Differentials
Constructive Macro Environment 13Source: MarketView as of February 27, 2023 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) Midland-Cushing and WTL-WTI Differentials ($/bbl)WCS – WTI Differential ($/bbl) RVO-Weighted RINs ($/bbl)
Slide 15: Renewable Diesel Growth Initiatives
• Construction is underway on a feed pretreater at Wynnewood that would enable processing of inedible corn oil, animal fats and used cooking oils that generate additional LCFS credits. • Currently plan to complete construction and installation by 3Q 2023. • Completed the process design for the conve
Slide 16: Renewable Diesel Initiatives: Wynnewood Hydrocracker Conversion
Renewable Diesel Initiatives 15 KSAAT Project at Wynnewood Wynnewood Hydrocracker Conversion 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 produce renewable diesel and renewab
Slide 17: Renewable Diesel Initiatives: Margin Factors and Sensitivities
Renewable Diesel Initiatives 16 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 produced) • BTC ($1/gal credit auth
Slide 18: Capital Expenditures and Turnarounds
$0 $50 $100 $150 $200 $250 2018 2019 2020 2021 2022 2023e $ M Environmental & Maintenance Growth Capital Expenditures and Turnarounds 17Note: As of December 31, 2022. Shaded areas indicate the top end of capital expenditure estimates. 2023 Petroleum Segment and RDU Capex of $160M - $181M Environment
Slide 19: Fertilizer Segment
FERTILIZER SEGMENT
Slide 20: Stable Trends in Fertilizer Supply & Demand
19 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 2022/2023 at approximately 9%, one of
Slide 21: 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 2018 – 2022 average. 20 ➢ 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 22: 2022 Fertilizer Market Seasonal Review
2 0 2 2 Spring ➢ Persistent high natural gas prices in Europe and export restrictions in China and Russia continued to limit global supply of nitrogen fertilizers. ➢ Cold and wet weather in the U.S. led to a slower than normal start to corn planting – higher fertilizer prices led to lower applicatio
Slide 23: Nitrogen Fertilizer Facilities and Marketing Area
➢ 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 24: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes(1) Consolidated Ammonia Utilization(2) Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(3) (1) For the last twelve months ended December 31, 2022. (2) Twelve months ended December 31, 2022 utilization impacted by planned turnaroun
Slide 25: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses 24 2023 Total Capex budget of $33M - $36M Environmental and Maintenance spending estimated at $31M - $33M. Growth capex estimated at $2M - $3M. 2023 No Turnaround spending planned ➢ Coffeyville and East Dubuque planned turnarounds were completed on schedu
Slide 26: Appendix
APPENDIX
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures 26 Adjusted EBITDA – EBITDA adjusted for certain significant non-cash items and items that management believes are not attributable to or indicative of our on-going operations or that may obscure our underlying results and trends. Direct Operating Expenses per Throughput
Slide 28: Non-GAAP Financial Measures: CVR Energy
Non-GAAP Financial Measures 27Note: All amounts on this slide are adjusted for the turnaround accounting change effective in 1Q 2019. These amounts are unaudited. Petroleum Segment (In USD Millions) CVR Energy, Inc. 2018 2019 2020 2021 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2022 TTM Net Income 366$ 362$ (3
Slide 29: Non-GAAP Financial Measures: CVR Partners
Non-GAAP Financial Measures 28 (In USD Millions) CVR Partners, LP 2018 2019 2020 2021 2022 1Q 2022 2Q 2022 3Q 2022 4Q 2022 TTM Net Income (loss) (50)$ (35)$ (98)$ 78$ 287$ 94$ 118$ (20)$ 95$ 287$ Add: Interest expense and other financing costs, net of interest income 62 62 63 61 34$ 10 8 8 8 34 Add:
Slide 30: 2023 Estimated Capital Expenditures
2023 Estimated Capital Expenditures 29 (1) Total 2023 estimated capitalized costs include approximately $6 million of growth related projects that will require additional approvals before commencement. (2) Renewables reflects spending on the Wynnewood Refinery’s RDU and renewable feedstock pretreate
Slide 31: Simplified Organizational Structure
50% CVR Energy, Inc. NYSE: CVI Icahn Enterprises L.P & Affiliates Public CVR GP, LLC CVR Partners, LP NYSE: UAN Nitrogen Fertilizer Segment Operating Subsidiaries Public 63.2 % N-E GP Interest • Non-Economic General Partner Interest (“N-E GP Interest”) 29.2 % 70.8 % 36.8 % 45Q JV Entities Other Oper