CVR Energy Inc. · NYSE:CVI
CVR Energy — Investor Presentation (June 2021)
32 slides from CVR Energy's investor presentation, June 2021
Slide 1: June 2021 Investor Presentation
June 2021 Investor Presentation
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 Guiding Principles Our mission is to be a top tier North American 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
Slide 4: Company Overview
Company Overview Mid-Continent Focused Refining & Fertilizer Businesses CVR Energy is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries. CVR Energy’s Petroleum segment is the larger of the two businesses and is comprised of two
Slide 5: Strategic Priorities
Strategic Priorities Focus on Operating Safely, Controlling Costs and Maintaining Balance Sheet & Liquidity Continuing to improve in all Environmental, Health and Safety matters - Safety is Job 1 Improve EH&S ✓ Petroleum Segment had no process safety incidents in 1Q 2021, in-line with 1Q 2020. Ferti
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Key Priorities • Create long-term value through safe, reliable operations and continuously optimizing core refining, fertilizer and associated logistics assets; • Invest in high return projects that are complimentary to existing assets, improve feedstock supply and produc
Slide 7: Environmental, Social & Governance (ESG) Highlights
Environmental, Social & Governance (ESG) Highlights In Process of Creating First ESG Report Environmental Social o Reduced consolidated criteria pollutant emissions by 20% from 2015 to 2019 o Diversity is a key component of our Mission & Values o Commenced construction on renewable diesel unit desig
Slide 8: Petroleum Segment
PETROLEUM SEGMENT
Slide 9: Asset Footprint
Asset Footprint Strategically Located Assets near Cushing and SCOOP/STACK Mid-Continent Refineries Nameplate crude oil capacity of 206,500 bpd across two refineries • 1Q21 total throughput of 186,093 bpd (1) • 2020 total throughput of 183,295 bpd (2) Average complexity of 10.8 Located in Group 3 of
Slide 10: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries Multiple Takeaway Options Provide Product Placement Flexibility 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 ➢
Slide 11: High-Quality Refining Assets
High-Quality Refining Assets Consistent High Margin Generation and Low-Cost Operations Consolidated Top Tier Refining Margin(1) Consolidated Low Cost Operator (2) Total Throughput(1) Total Production(1) (4) Heavy Canadian (3) Other 11.1% Other (5) 0.2% 5.4% Condensate 7.9% Midland WTI 0.4% WTL 3.0%
Slide 12: Improving Macro Environment
Improving Macro Environment Mid Con Supply and Demand Fundamentals Trending Better than US Average US Gasoline Demand Magellan System Gasoline Demand US Diesel Demand Magellan System Diesel Demand Source: EIA, Magellan 12
Slide 13: Improving Macro Environment
Improving Macro Environment Mid Con Supply and Demand Fundamentals Trending Better than US Average US Gasoline Inventories Magellan System Gasoline Inventories US Diesel Inventories Magellan System Diesel Inventories Source: EIA, Magellan 13
Slide 14: Improving Macro Environment
Improving Macro Environment Crack Spreads Have Improved With Product Demand Recovery and Inventory Declines 2-1-1 Crack Spreads & Brent-WTI Differentials ($/bbl) WTI-Based Gasoline and ULSD Crack Spreads ($/bbl) $30 $35 NYMEX 2-1-1 Group 3 2-1-1 Brent-WTI NYMEX ULSD Crack NYMEX RBOB Crack $25 $30 $2
Slide 15: Progressing Renewable Diesel Project
Progressing Renewable Diesel Project(1) Potential Multi-Phase Project Utilizing Existing Assets at Both Refineries • Convert the existing hydrocracker at Wynnewood to Renewable Diesel service, while retaining the optionality to switch back to hydrocarbon processing Phase 1: Wynnewood • Retool the Wy
Slide 16: Progressing Renewable Diesel Project
Progressing Renewable Diesel Project(1) Under Construction KSAAT Project at Wynnewood Wynnewood Hydrocracker Conversion Renewable Diesel Margin Proxy Project Highlights: • Convert 19,000 BPD hydrocracker at Wynnewood to process 100 million gallons per year of washed and bleached soybean oil to produ
Slide 17: Renewable Diesel Project Economics and Sensitivities
Progressing Renewable Diesel Project(1) Renewable Diesel Project Economics and Sensitivities Project Economics: 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 R
Slide 18: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds Disciplined Approach to Capital Spending $250 2021 Petroleum Segment and RDU Capex of $209 - $220M $200 Environmental and Maintenance spending planned at $85M to $90M for FY21. $150 $M Growth capex estimated at $124M to $130M. $100 ➢ Substantially all budgeted gr
Slide 19: Fertilizer Segment
FERTILIZER SEGMENT ee at | See ee af ; THES fae | nak
Slide 20: Stable Trends in Fertilizer Demand
Stable Trends in Fertilizer Demand Global and Domestic Demand for Nitrogen Remains Steady Global nitrogen consumption increased by 15% between 2009 and 2020 driven by: Global Nitrogen Consumption ➢ Population growth 140 130 ➢ Decrease in arable farmland per capita 120 ➢ Biofuel consumption 110 Milli
Slide 21: U.S Nitrogen Supply & Demand
U.S Nitrogen Supply & Demand Domestic Supply and Demand Picture is Currently More Balanced Corn Stocks to Use Compared to Netback Fertilizer Pricing US Nitrogen Supply ➢ Fertilizers represent approximately 15% of farmers’ ➢ Major global nitrogen capacity build cycle largely cost structure and signif
Slide 22: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. Increasing Corn Consumption is Positive for Nitrogen Demand Corn has a variety of uses and applications, U.S. Domestic Corn Use including feed grains, ethanol for fuel and food, 14.0 seed and industrial (FSI) 12.0 10.0 (Bushels in billions) ➢ Feed grains 8.0 ▪ ~96%
Slide 23: Strategically Located Assets
Strategically Located Assets Well-Positioned in Premium Pricing Regions ➢ Large geographic footprint serving the Southern Plains and Corn Belt region ➢ Well positioned to minimize distribution costs and maximize net back pricing ➢ Rail loading rack at Coffeyville provides significant logistics optio
Slide 24: Key Operating Statistics
Key Operating Statistics Consistent High Utilization at Both Facilities Consolidated Production Volumes (1) Ammonia Utilization(2) Ammonia (gross produced) Ammonia (net avail. for sale) UAN 100% Coffeyville East Dubuque Consolidated 1,400 97% 96% 1,200 95% 94% 93% 93% 93% % of Capacity 1,000 Thousan
Slide 25: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses Primarily Focused on Maintenance Spending East Dubuque Merger on 2021 Total Capex budget of $22M - $26M April 1, 2016 $30 Environmental and Maintenance spending planned $25 at $18M - $20M $20 Growth capex budgeted at $4M - $6M $M $15 $10 ➢ Growth capex bu
Slide 26: Appendix
APPENDIX
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Available Cash for Distribution - EBITDA for the quarter excluding non-cash income or expense items (if any), for which adjustment is deemed necessary or appropriate by the board of directors (the “Board”) of our general partner in its sole discretion, less (i) reserves f
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Energy, Inc. 2016 2017 2018 2019 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 TTM Net Income $ 10 $ 258 $ 366 $ 362 $ (320) $ (32) $ (108) $ (78) $ (55) $ (273) Add: Interest expense and other financing costs, net of interest income 83 109 102 102 130 31 31
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended Twelve Months (In USD Millions) June 30, September 30, December 31, March 31, Ended 2020 2020 2020 2021 March 31, 2021 Consolidated Net loss $ (32) $ (108) $ (78) $ (55) $ (273) Add: Interest expense, net 31 31 32 31 125 Income tax benefit (5) (31) (23)
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Partners, LP 2016 2017 2018 2019 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 TTM Net Income (loss) $ (27) $ (73) $ (50) $ (35) $ (98) $ (42) $ (19) $ (17) $ (25) $ (103) Add: Interest expense and other financing costs, net of interest income 49 63 62 62 63
Slide 31: 2021 Estimated Capital Expenditures
2021 Estimated Capital Expenditures 2020 Actual 2021 Estimate (1) Maintenance Growth Total Maintenance Growth Total Low High Low High Low High Petroleum $ 77 $ 13 $ 90 $ 85 $ 90 $ 1 $ 2 $ 86 $ 92 (2) Renewables - - - - - 123 128 123 128 Nitrogen Fertilizer 12 4 16 18 20 4 6 22 26 Other 3 12 15 3 4 -
Slide 32: Simplified Organizational Structure
Simplified Organizational Structure Public Icahn Enterprises L.P. and Affiliates 29% 71% CVR Energy, Inc. (NYSE:CVI) Wynnewood Insurance Corporation CVR Energy Holdings, Inc. CVR Aviation, LLC Public 34.1% 65.9% CVR Services, LLC CVR GP, LLC CVR Refining GP, LLC 63.6% 36.4% Non-Economic General Part