Cvr Energy Inc. · NYSE:CVI
Cvr Energy — Investor Presentation (September 2023)
30 slides from Cvr Energy's investor presentation, Sep 6, 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 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 Our mission is to be a top tier North American renewable fuels, petroleum refining, and nitrogen-based fertilizer company as measured by safe and reliable operations, superior financial performance and profitable growth. Our core values define the way we do business every day to a
Slide 4: Company Overview
Company Overview • Founded: 2006 • Headquarters: Sugar Land, TX • Employees: 1,450+ • Description: 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 biofuel
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 Maximize Returns to Investors Consolidated total recordable incident rate (TRIR) declined 63% in 2022 compared to 2021. Petrole
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Key Priorities: ▪ Create long-term value through safe, reliable operations and continuously optimizing core refining, renewables, fertilizer and associated logistics assets; ▪ Invest in high return projects that are complimentary to existing assets and improve feedstock s
Slide 7: ESG Highlights
ESG Highlights Environmental ▪ Renewable diesel unit start-up at the Wynnewood Refinery in April 2022. ▪ Wynnewood Refinery feedstock pretreatment unit (PTU) construction & installation expected to be complete in 4Q 2023. ▪ Average reduction of 1 million metric tons per year of carbon dioxide equiva
Slide 8: Petroleum Segment
Se PETROLEUM SEGMENT
Slide 9: Asset Footprint
Asset Footprint Nameplate crude oil capacity of 206,500 bpd across two refineries ▪ 2Q 2023 total throughput of 201,075 bpd ▪ FY 2022 total throughput of 205,288 bpd; Crude oil capacity utilization of approximately 92% Average complexity of 10.8 Located in Group 3 of PADD II ▪ Refineries are strateg
Slide 10: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries Focused on maximizing refined product netbacks and participating in renewable fuel blending economics and internal generation of RINs whenever possible. For YTD 2023 through June: ▪ Approximately 20% of refined product sales were across CVR’s refinery racks w
Slide 11: High-Quality Refining Assets
High-Quality Refining Assets 10 Consolidated High Utilization Rates Total Throughput and Production Mix(1) Consolidated Low-Cost Operator(2)Consolidated Top Tier Refining Margin(1) Peer group includes: Delek US Holdings, HF Sinclair, Marathon Petroleum, Par Pacific , PBF Energy, Phillips 66 and Vale
Slide 12: Constructive Macro Environment: Demand
Constructive Macro Environment 11 US Diesel Demand PADD II Diesel Demand US Gasoline Demand PADD II Gasoline Demand Source: EIA
Slide 13: Constructive Macro Environment: Inventories
Constructive Macro Environment 12 US Diesel Inventories PADD II Diesel Inventories US Gasoline Inventories PADD II Gasoline Inventories Source: EIA
Slide 14: Constructive Macro Environment: Crack Spreads and RINs
Constructive Macro Environment Source: MarketView as of August 31, 2023 13 RVO-Weighted RINs ($/bbl) 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) WCS – WTI Differential ($/bbl) Group 3 Crack Spreads ($/bbl)
Slide 15: Growing Focus on Renewable Biofuels
Growing Focus on Renewable Biofuels(1) Renewable Diesel Phase 1: Wynnewood Renewable Diesel Phase 2: Pre-Treater ▪ Conversion of the existing hydrocracker at the Wynnewood Refinery to renewable diesel service and retooling the refinery for maximum condensate processing. ▪ Capacity of 100 million gal
Slide 16: Wynnewood Renewable Diesel Initiatives
KSAAT Project at Wynnewood Renewable Diesel Initiatives 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 generat
Slide 17: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds ▪ Environmental and Maintenance spending estimated at $91MM to $101MM. ▪ Growth capex estimated at $69MM to $80MM. ▪ Substantially all budgeted growth capital spending for 2023 is related to the PTU project at the Wynnewood Refinery. ▪ Coffeyville’s turnaround wa
Slide 18: Fertilizer Segment
FERTILIZER SEGMENT
Slide 19: Stable Trends in Fertilizer Supply & Demand
Stable Trends in Fertilizer Supply & Demand farmers’ cost structure and significantly improve yields. ▪ USDA projecting stocks to use ratio for 2023/2024 at approximately 15%. Source: USDA, Fertecon complete in 2017/2018, and additional tons have been absorbed by the market. ▪ Reduced global supply
Slide 20: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. ▪ 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 supplied by corn ▪ Consumes ~39% of annual corn crop(1) ▪ Ethanol ▪ Consumes ~36% of annual
Slide 21: Recent Domestic Nitrogen Fertilizer Market Conditions
2 0 2 2 2 0 2 3 Recent Domestic Nitrogen Fertilizer Market Conditions Fall Winter Spring Summer ▪ UAN and Ammonia prices approximately $500/ton and $1,100/ton, respectively for 4Q 2022 shipment. Fall Ammonia application was strong and anticipating planted acres likely to increase in 2023. ▪ Carryout
Slide 22: Strategically Located Assets
Strategically Located Assets ▪ 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 Mississipp
Slide 23: Key Operating Statistics
Key Operating Statistics Consolidated Sales Revenue(1)(2) (1) For the twelve months ended June 30, 2023. (2) Excludes freight and other. 22 Consolidated Production Volumes(1) Consolidated Ammonia Utilization Consolidated Feedstock Costs(1)
Slide 24: Capital Expenditures and Turnaround Expenses
$ M $ M Capital Expenditures and Turnaround Expenses $35 $30 $25 $20 $15 $10 $5 $0 2018 2019 2020 2021 2022 2023 Maintenance Growth $30 $25 $20 $15 $10 $5 $0 2018 2019 2020 2021 2022 2023 Turnaround spending Note: As of June 30, 2023. Shaded areas indicate the top end of capital expenditure estimate
Slide 25: Appendix
APPENDIX
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 Bar
Slide 27: Non-GAAP Financial Measures: CVR Energy, Inc.
Non-GAAP Financial Measures (In USD Millions) CVR Energy, Inc. 2019 2020 2021 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 TTM Net Income (loss) $ 362 $ (320) $ 74 $ 644 $ 80 $ 172 $ 259 $ 168 $ 679 Add: Interest expense and other financing costs, net of interest income 102 130 117 85 19 18 18 16 71 Add: In
Slide 28: Non-GAAP Financial Measures: CVR Partners, LP
Non-GAAP Financial Measures (In USD Millions) CVR Partners, LP 2019 2020 2021 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 TTM Net Income (loss) $ (35) $ (98) $ 78 $ 287 $ (20) $ 95 $ 102 $ 60 $ 237 Add: Interest expense and other financing costs, net of interest income 62 63 61 $ 34 8 8 7 7 30 Add: Depreci
Slide 29: 2023 Estimated Capital Expenditures
2023 Estimated Capital Expenditures 2022 Actual 2023 Estimate Maintenance Growth Total Maintenance Growth Total Low High Low High Low High Petroleum $ 84 $ 2 $ 86 $ 89 $ 98 $ 22 $ 25 $ 111 $ 123 Renewables (1) 2 67 69 2 3 47 55 49 58 Nitrogen Fertilizer 40 1 41 31 32 2 3 33 35 Other 7 - 7 7 9 - - 7
Slide 30: Simplified Organizational Structure
Simplified Organizational Structure(1) Icahn Public Enterprises L.P & Affiliates 29.6 % 70.4 % CVR GP, LLC Public N-E GP Interest(2) 36.8 % CVR Partners, LP NYSE: UAN 63.2 % 50% Petroleum Segment Subsidiaries Nitrogen Fertilizer Segment Subsidiaries 40% 50% Enable South Central Pipeline, LLC 45Q JV