• CVR Energy Reports Third Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 28 Oct 2024 16:05:07   America/Chicago

    • Third quarter net loss attributable to CVR Energy stockholders of $124 million; EBITDA loss of $35 million; adjusted EBITDA of $63 million
    • Third quarter loss per diluted share of $1.24 and adjusted loss per diluted share of 50 cents
    • CVR Energy will not pay a cash dividend for the third quarter of 2024
    • CVR Partners announced a cash distribution of $1.19 per common unit

    SUGAR LAND, Texas, Oct. 28, 2024 (GLOBE NEWSWIRE) -- CVR Energy, Inc. (NYSE: CVI, “CVR Energy” or the “Company”) today announced a net loss attributable to CVR Energy stockholders of $124 million, or $1.24 per diluted share, and an EBITDA loss of $35 million for the third quarter of 2024, compared to net income attributable to CVR Energy stockholders of $353 million, or $3.51 per diluted share, and EBITDA of $530 million for the third quarter of 2023. Excluding the adjustments shown in the corresponding earnings release tables, adjusted loss per diluted share for the third quarter of 2024 was 50 cents and adjusted EBITDA was $63 million, compared to adjusted earnings per diluted share of $1.89 and adjusted EBITDA of $313 million in the third quarter of 2023.

    “CVR Energy’s 2024 third quarter earnings results for its refining business were impacted by reduced refining throughputs attributable to unplanned downtime at both facilities partially caused by external power supply outages during the quarter,” said Dave Lamp, CVR Energy’s Chief Executive Officer. “The Board’s decision to suspend the quarterly dividend reflects its concerns on just how long the current margin environment will persist in light of the Company’s large, planned turnaround at its Coffeyville refinery in the first quarter of 2025.

    “CVR Partners achieved solid operating results for the third quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 97 percent,” Lamp said. “CVR Partners was pleased to declare a third quarter 2024 cash distribution of $1.19 per common unit.”

    Petroleum

    The Petroleum Segment reported a third quarter 2024 net loss of $110 million and an EBITDA loss of $75 million, compared to net income of $460 million and EBITDA of $484 million for the third quarter of 2023. Adjusted EBITDA for the Petroleum Segment was $24 million for the third quarter of 2024, compared to $281 million for the third quarter of 2023.

    Combined total throughput for the third quarter of 2024 was approximately 189,000 barrels per day (bpd) compared to approximately 212,000 bpd of combined total throughput for the third quarter of 2023.

    Refining margin for the third quarter of 2024 was $44 million, or $2.53 per total throughput barrel, compared to $607 million, or $31.05 per total throughput barrel, during the same period in 2023. Included in our third quarter 2024 refining margin were unfavorable mark-to-market impacts on our outstanding RFS obligation of $59 million, unfavorable derivative impacts of $9 million from open crack spread swap positions and unfavorable inventory valuation impacts of $31 million. Excluding these items, adjusted refining margin for the third quarter of 2024 was $8.23 per barrel, compared to an adjusted refining margin per barrel of $20.73 for the third quarter of 2023. The decrease in adjusted refining margin per barrel was primarily due to a decrease in the Group 3 2-1-1 crack spread.

    Nitrogen Fertilizer

    The Nitrogen Fertilizer Segment reported net income of $4 million and EBITDA of $36 million on net sales of $125 million for the third quarter of 2024, compared to net income of $1 million and EBITDA of $32 million on net sales of $131 million for the third quarter of 2023.

    Production at CVR Partners, LP’s (“CVR Partners”) fertilizer facilities decreased slightly compared to the third quarter of 2023, producing a combined 212,000 tons of ammonia during the third quarter of 2024, of which 61,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 321,000 tons of urea ammonia nitrate (“UAN”). During the third quarter of 2023, the fertilizer facilities produced a combined 217,000 tons of ammonia, of which 68,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 358,000 tons of UAN.

    For the third quarter 2024, average realized gate prices for UAN showed an improvement compared to the prior year, up 3 percent to $229 per ton, and ammonia was up 9 percent over the prior year to $399 per ton. Average realized gate prices for UAN and ammonia were $223 and $365 per ton, respectively, for the third quarter of 2023.

    Corporate and Other

    The Company reported an income tax benefit of $6 million, or 4.6 percent of loss before income taxes, for the three months ended September 30, 2024, compared to an income tax expense of $84 million, or 19.3 percent of income before income taxes, for the three months ended September 30, 2023. The decrease in income tax expense was primarily due to a decrease in overall pretax earnings while the change in the effective tax rate was primarily due to changes in pretax earnings attributable to noncontrolling interest and the impact of federal and state tax credits and incentives in relation to overall pretax earnings.

    The renewable diesel unit at the Wynnewood refinery had total vegetable oil throughputs for the third quarter of 2024 of approximately 19.6 million gallons, down from 23.8 million gallons in the third quarter of 2023. The decrease was primarily due to running the unit at lower utilization rates in the current period in an effort to optimize catalyst life.

    Cash, Debt and Dividend

    Consolidated cash and cash equivalents were $534 million at September 30, 2024, a decrease of $47 million from December 31, 2023. Consolidated total debt and finance lease obligations were $1.6 billion at September 30, 2024, including $548 million held by the Nitrogen Fertilizer Segment.

    CVR Energy will not pay a cash dividend for the third quarter of 2024.

    Today, CVR Partners announced that the Board of Directors of its general partner declared a third quarter 2024 cash distribution of $1.19 per common unit, which will be paid on November 18, 2024, to common unitholders of record as of November 8, 2024.

    Third Quarter 2024 Earnings Conference Call

    CVR Energy previously announced that it will host its third quarter 2024 Earnings Conference Call on Tuesday, October 29, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of Company developments, forward-looking information and other material information about business and financial matters.

    The third quarter 2024 Earnings Conference Call will be webcast live and can be accessed on the Investor Relations section of CVR Energy’s website at www.CVREnergy.com. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8291. The webcast will be archived and available for 14 days at https://edge.media-server.com/mmc/p/fm39ca3r. A repeat of the call also can be accessed for 14 days by dialing (877) 660-6853, conference ID 13749245.

    Forward-Looking Statements
    This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding future: continued safe and reliable operations; drivers of our results; income, losses, and earnings per diluted share; EBITDA and Adjusted EBITDA; renewable identification numbers (“RINs”) expense; asset utilization, capture, production volume, product yield and crude oil gathering rates; cash flow generation; production; operating income and net sales; throughput, including the impact of turnarounds or fires thereon; refining margin, including contributors thereto; margin environment; impact of costs to comply with the RFS and revaluation of our RFS liability; outcome of litigation and disputes, including impact on our financial position and cash flows; crude oil and refined product pricing impacts on inventory valuation; dividend yield; derivative gains and losses and the drivers thereof; crack spreads, including the drivers thereof; demand trends; RIN generation levels; ethanol and biodiesel blending activities; inventory levels; benefits of our corporate transformation to segregate our renewables business; access to capital and new partnerships; RIN pricing, including its impact on our results and our ability to offset the impact thereof; disruptions to operations (planned and unplanned), including impacts on results; carbon capture and decarbonization initiatives; ammonia and UAN pricing; global fertilizer industry conditions; grain prices; crop inventory levels; crop and planting levels; demand for refined products; economic downturns and demand destruction; production rates; production levels and utilization at our nitrogen fertilizer facilities; nitrogen fertilizer sales volumes, including factors driving same; ability to and levels to which we upgrade ammonia to other fertilizer products, including UAN; income tax expense, including the drivers thereof; changes to pretax earnings and our effective tax rate; the availability of tax credits and incentives; production rates and operations capabilities of our renewable diesel unit, including the ability to return to hydrocarbon service; renewable feedstock throughput; purchases under share or unit repurchase programs (if any), or the termination thereof; ability to access capital markets, secure financing or sell assets; cash and cash equivalent levels; debt levels; borrowings under our credit facilities (if any); dividends and distributions, including the timing, payment and amount (if any) thereof; any suspension of our dividend, including the duration thereof; direct operating expenses, capital expenditures, depreciation and amortization; efforts to reduce or defer expenses and the amount and impact thereof; cash reserves; turnaround timing and expense, including the impacts thereof on our liquidity; impacts of any pandemic; labor supply shortages, difficulties, disputes or strikes, including the impact thereof; the April 2024 fire at the Wynnewood Refinery including the impact and cost thereof on and to our operations, financial position or otherwise; and other matters. You can generally identify forward-looking statements by our use of forward-looking terminology such as “outlook,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “explore,” “evaluate,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,” or “will,” or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. Investors are cautioned that various factors may affect these forward-looking statements, including (among others) the health and economic effects of any pandemic, demand for fossil fuels and price volatility of crude oil, other feedstocks and refined products; the ability of Company to pay cash dividends and of CVR Partners to make cash distributions; potential operating hazards, including the impacts of fires at our facilities; costs of compliance with existing or new laws and regulations and potential liabilities arising therefrom; impacts of the planting season on CVR Partners; our controlling shareholder’s intention regarding ownership of our common stock and potential strategic transactions involving us or CVR Partners; general economic and business conditions; political disturbances, geopolitical instability and tensions; impacts of plant outages and weather conditions and events; and other risks. For additional discussion of risk factors which may affect our results, please see the risk factors and other disclosures included in our most recent Annual Report on Form 10-K, any subsequently filed Quarterly Reports on Form 10-Q and our other Securities and Exchange Commission (“SEC”) filings. These and other risks may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this news release are made only as of the date hereof. CVR Energy disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.

    About CVR Energy, Inc.

    Headquartered in Sugar Land, Texas, CVR Energy is a diversified holding company primarily engaged in the renewables, petroleum refining and marketing business as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners. CVR Energy subsidiaries serve as the general partner and own 37 percent of the common units of CVR Partners.

    Investors and others should note that CVR Energy may announce material information using SEC filings, press releases, public conference calls, webcasts and the Investor Relations page of its website. CVR Energy may use these channels to distribute material information about the Company and to communicate important information about the Company, corporate initiatives and other matters. Information that CVR Energy posts on its website could be deemed material; therefore, CVR Energy encourages investors, the media, its customers, business partners and others interested in the Company to review the information posted on its website.

    Contact Information:

    Investor Relations
    Richard Roberts
    (281) 207-3205
    InvestorRelations@CVREnergy.com

    Media Relations
    Brandee Stephens
    (281) 207-3516
    MediaRelations@CVREnergy.com

    Non-GAAP Measures

    Our management uses certain non-GAAP performance measures, and reconciliations to those measures, to evaluate current and past performance and prospects for the future to supplement our financial information presented in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures are important factors in assessing our operating results and profitability and include the performance and liquidity measures defined below.

    As a result of continuing volatile market conditions and the impacts certain non-cash items may have on the evaluation of our operations and results, the Company began disclosing the Adjusted Refining Margin non-GAAP measure, as defined below, in the second quarter of 2024. We believe the presentation of this non-GAAP measure is meaningful to compare our operating results between periods and better aligns with our peer companies. All prior periods presented have been conformed to the definition below.

    The following are non-GAAP measures we present for the periods ended September 30, 2024 and 2023:

    EBITDA - Consolidated net income (loss) before (i) interest expense, net, (ii) income tax expense (benefit) and (iii) depreciation and amortization expense.

    Petroleum EBITDA and Nitrogen Fertilizer EBITDA - Segment net income (loss) before segment (i) interest expense, net, (ii) income tax expense (benefit), and (iii) depreciation and amortization.

    Refining Margin - The difference between our Petroleum Segment net sales and cost of materials and other.

    Adjusted Refining Margin - Refining Margin adjusted for certain significant noncash 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 we deem useful.

    Refining Margin and Adjusted Refining Margin, per Throughput Barrel - Refining Margin and Adjusted Refining Margin divided by the total throughput barrels during the period, which is calculated as total throughput barrels per day times the number of days in the period.

    Direct Operating Expenses per Throughput Barrel - Direct operating expenses for our Petroleum Segment divided by total throughput barrels for the period, which is calculated as total throughput barrels per day times the number of days in the period.

    Adjusted EBITDA, Petroleum Adjusted EBITDA and Nitrogen Fertilizer Adjusted EBITDA - EBITDA, Petroleum EBITDA and Nitrogen Fertilizer EBITDA adjusted for certain significant noncash 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 we deem useful.

    Adjusted Earnings (Loss) per Share - Earnings (loss) per share 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 we deem useful.

    Free Cash Flow - Net cash provided by (used in) operating activities less capital expenditures and capitalized turnaround expenditures.

    We present these measures because we believe they may help investors, analysts, lenders and ratings agencies analyze our results of operations and liquidity in conjunction with our U.S. GAAP results, including but not limited to our operating performance as compared to other publicly traded companies in the refining and fertilizer industries, without regard to historical cost basis or financing methods and our ability to incur and service debt and fund capital expenditures. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. See “Non-GAAP Reconciliations” included herein for reconciliation of these amounts. Due to rounding, numbers presented within this section may not add or equal to numbers or totals presented elsewhere within this document.

    Factors Affecting Comparability of Our Financial Results

    Petroleum Segment

    Our results of operations for the periods presented may not be comparable with prior periods or to our results of operations in the future due to capitalized expenditures as part of planned turnarounds. Total capitalized expenditures were $3 million and $2 million during the three months ended September 30, 2024 and 2023, respectively, and $45 million and $53 million during the nine months ended September 30, 2024 and 2023, respectively. The next planned turnaround is currently scheduled to take place in the first quarter of 2025 at the Coffeyville refinery.

    CVR Energy, Inc.
    (all information in this release is unaudited)

    Consolidated Statement of Operations Data   
     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions, except per share data) 2024   2023   2024   2023 
    Net sales$1,833  $2,522  $5,663  $7,045 
    Operating costs and expenses:       
    Cost of materials and other 1,666   1,787   4,796   5,211 
    Direct operating expenses (exclusive of depreciation and amortization) 165   170   502   503 
    Depreciation and amortization 73   80   218   217 
    Cost of sales 1,904   2,037   5,516   5,931 
    Selling, general and administrative expenses (exclusive of depreciation and amortization) 40   38   103   109 
    Depreciation and amortization 2   1   6   4 
    Loss on asset disposal —   1   1   1 
    Operating (loss) income (113)  445   37   1,000 
    Other (expense) income:       
    Interest expense, net (18)  (11)  (56)  (44)
    Other income, net 3   4   10   10 
    (Loss) income before income tax benefit (128)  438   (9)  966 
    Income tax (benefit) expense (6)  84   (14)  185 
    Net (loss) income (122)  354   5   781 
    Less: Net income attributable to noncontrolling interest 2   1   27   103 
    Net (loss) income attributable to CVR Energy stockholders$(124) $353  $(22) $678 
            
    Basic and diluted (loss) earnings per share$(1.24) $3.51  $(0.22) $6.74 
    Dividends declared per share$0.50  $1.50  $1.50  $2.50 
            
    Adjusted (loss) earnings per share$(0.50) $1.89  $(0.38) $4.98 
    EBITDA*$(35) $530  $271  $1,231 
    Adjusted EBITDA *$63  $313  $249  $994 
            
    Weighted-average common shares outstanding - basic and diluted 100.5   100.5   100.5   100.5 

    _________________

    * See “Non-GAAP Reconciliations” section below.


    Selected Consolidated Balance Sheet Data

    (in millions)September 30, 2024 December 31, 2023
    Cash and cash equivalents$534 $581
    Working capital 353  497
    Total assets 3,878  4,707
    Total debt and finance lease obligations, including current portion 1,582  2,185
    Total liabilities 3,022  3,669
    Total CVR stockholders’ equity 675  847

    Selected Consolidated Cash Flow Data

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024   2023   2024   2023 
    Net cash (used in) provided by:       
    Operating activities$48  $370  $306  $984 
    Investing activities (35)  (51)  (164)  (181)
    Financing activities (65)  (181)  (794)  (424)
    Net (decrease) increase in cash, cash equivalents, and restricted cash$(52) $138  $(652) $379 
            
    Free cash flow*$13  $318  $141  $802 

    _________________

    * See “Non-GAAP Reconciliations” section below.

    Selected Segment Data

     Three Months Ended September 30,
      2024   2023
    (in millions)Petroleum Nitrogen Fertilizer Consolidated Petroleum Nitrogen Fertilizer Consolidated
    Net sales$1,648  $125 $1,833  $2,298 $131 $2,522
    Operating (loss) income (119)  11  (113)  431  8  445
    Net (loss) income (110)  4  (122)  460  1  354
    EBITDA* (75)  36  (35)  484  32  530
                
    Capital expenditures(1)           
    Maintenance capital expenditures$22  $7 $31  $20 $8 $30
    Growth capital expenditures 6   3  8   6  —  21
    Total capital expenditures$28  $10 $39  $26 $8 $51


     Nine Months Ended September 30,
      2024  2023
    (in millions)Petroleum Nitrogen Fertilizer Consolidated Petroleum Nitrogen Fertilizer Consolidated
    Net sales$5,165 $386 $5,663 $6,290 $540 $7,045
    Operating income 9  65  37  838  184  1,000
    Net income 35  43  5  913  162  781
    EBITDA* 152  129  271  989  243  1,231
                
    Capital expenditures(1)           
    Maintenance capital expenditures$66 $15 $87 $70 $17 $92
    Growth capital expenditures 31  4  43  9  1  56
    Total capital expenditures$97 $19 $130 $79 $18 $148

     _________________ 

    * See “Non-GAAP Reconciliations” section below.
    (1)   Capital expenditures are shown exclusive of capitalized turnaround expenditures.

    Selected Balance Sheet Data

     September 30, 2024 December 31, 2023
    (in millions)Petroleum Nitrogen Fertilizer Consolidated Petroleum Nitrogen Fertilizer Consolidated
    Cash and cash equivalents$275 $111 $534 $375 $45 $581
    Total assets 2,804  987  3,878  2,978  975  4,707
    Total debt and finance lease obligations, including current portion(1) 39  548  1,582  44  547  2,185

     _________________ 

    (1)   Corporate total debt and finance lease obligations, including current portion consisted of $995 million and $1,594 million at September 30, 2024 and December 31, 2023, respectively.

    Petroleum Segment

    Key Operating Metrics per Total Throughput Barrel

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024  2023  2024  2023
    Refining margin *$2.53 $31.05 $9.96 $24.33
    Adjusted refining margin * 8.23  20.73  9.51  20.02
    Direct operating expenses * 5.72  5.39  6.14  5.58

     _________________
    * See “Non-GAAP Reconciliations” section below.

    Refining Throughput and Production Data by Refinery

    Throughput DataThree Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in bpd)2024 2023 2024 2023
    Coffeyville       
    Gathered crude66,781 68,176 71,993 62,442
    Other domestic35,111 49,303 36,549 47,491
    Canadian6,243 2,731 8,423 2,307
    Condensate— 7,401 4,244 7,718
    Other crude oil3,876 — 1,484 —
    Other feedstocks and blendstocks11,691 12,260 11,678 12,538
    Wynnewood       
    Gathered crude51,821 53,554 43,055 51,519
    Other domestic1,504 543 1,309 1,822
    Condensate9,663 15,780 8,634 14,567
    Other feedstocks and blendstocks2,604 2,672 3,058 2,984
    Total throughput189,294 212,420 190,427 203,388


    Production DataThree Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in bpd)2024  2023  2024  2023 
    Coffeyville       
    Gasoline62,031  69,833  68,732  67,463 
    Distillate52,030  60,661  55,237  56,311 
    Other liquid products5,169  4,463  5,578  4,461 
    Solids4,734  4,416  4,901  3,896 
    Wynnewood       
    Gasoline34,539  36,997  30,746  37,656 
    Distillate23,902  25,615  19,722  24,825 
    Other liquid products5,874  9,038  4,600  7,355 
    Solids11  9  8  10 
    Total production188,290  211,032  189,524  201,977 
            
    Light product yield (as % of crude throughput)(1)98.6% 97.8% 99.3% 99.1%
    Liquid volume yield (as % of total throughput)(2)97.0% 97.3% 96.9% 97.4%
    Distillate yield (as % of crude throughput)(3)43.4% 43.7% 42.7% 43.2%

     _________________

    (1) Total Gasoline and Distillate divided by total Gathered crude, Other domestic, Canadian, and Condensate throughput (collectively, “Total Crude Throughput”).
    (2) Total Gasoline, Distillate, and Other liquid products divided by total throughput.
    (3) Total Distillate divided by Total Crude Throughput.

    Key Market Indicators

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    West Texas Intermediate (WTI) NYMEX$75.27  $82.22  $77.62  $77.25 
    Crude Oil Differentials to WTI:       
    Brent 3.43   3.71   4.20   4.70 
    WCS (heavy sour) (13.84)  (15.91)  (14.43)  (16.33)
    Condensate (0.32)  (0.22)  (0.60)  (0.18)
    Midland Cushing 0.78   1.53   1.14   1.32 
    NYMEX Crack Spreads:       
    Gasoline 19.86   32.40   23.31   32.61 
    Heating Oil 22.21   45.20   27.78   40.35 
    NYMEX 2-1-1 Crack Spread 21.03   38.80   25.54   36.48 
    PADD II Group 3 Product Basis:       
    Gasoline (1.77)  0.84   (7.43)  (2.39)
    Ultra-Low Sulfur Diesel (1.51)  (0.25)  (5.15)  (0.38)
    PADD II Group 3 Product Crack Spread:       
    Gasoline 18.09   33.24   15.88   30.22 
    Ultra-Low Sulfur Diesel 20.70   44.96   22.62   39.97 
    PADD II Group 3 2-1-1 19.40   39.10   19.25   35.10 


    Nitrogen Fertilizer Segment

    Ammonia Utilization Rates (1)

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (percent of capacity utilization)2024  2023  2024  2023 
    Consolidated97% 99% 96% 101%

     _________________

    (1) Reflects our ammonia utilization rates on a consolidated basis. Utilization is an important measure used by management to assess operational output at each of CVR Partners’ facilities. Utilization is calculated as actual tons produced divided by capacity. We present our utilization for the three and nine months ended September 30, 2024 and 2023 and take into account the impact of our current turnaround cycles on any specific period. Additionally, we present utilization solely on ammonia production rather than each nitrogen product as it provides a comparative baseline against industry peers and eliminates the disparity of plant configurations for upgrade of ammonia into other nitrogen products. With our efforts being primarily focused on ammonia upgrade capabilities, this measure provides a meaningful view of how well we operate.

    Sales and Production Data

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024  2023  2024  2023
    Consolidated sales volumes (thousand tons):       
    Ammonia 62  62  175  183
    UAN 336  387  950  1,075
            
    Consolidated product pricing at gate (dollars per ton):(1)       
    Ammonia$399 $365 $481 $633
    UAN 229  223  254  330
            
    Consolidated production volume (thousand tons):       
    Ammonia(gross produced)(2) 212  217  626  660
    Ammonia(net available for sale)(2) 61  68  191  200
    UAN 321  358  964  1,063
            
    Feedstock:       
    Petroleum coke used in production(thousands of tons) 133  131  395  386
    Petroleum coke used in production(dollars per ton)$44.69 $84.09 $60.93 $78.49
    Natural gas used in production(thousands of MMBtus)(3) 2,082  2,133  6,443  6,429
    Natural gas used in production(dollars per MMBtu)(3)$2.19 $2.67 $2.40 $3.57
    Natural gas in cost of materials and other(thousands of MMBtus)(3) 1,783  2,636  5,403  6,354
    Natural gas in cost of materials and other(dollars per MMBtu)(3)$2.18 $2.51 $2.50 $4.21

     _________________

    (1) Product pricing at gate represents sales less freight revenue divided by product sales volume in tons and is shown in order to provide a pricing measure that is comparable across the fertilizer industry.
    (2) Gross tons produced for ammonia represent total ammonia produced, including ammonia produced that was upgraded into other fertilizer products. Net tons available for sale represent ammonia available for sale that was not upgraded into other fertilizer products.
    (3) The feedstock natural gas shown above does not include natural gas used for fuel. The cost of fuel natural gas is included in direct operating expense.

    Key Market Indicators

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024  2023  2024  2023
    Ammonia — Southern plains(dollars per ton)$481 $429 $507 $533
    Ammonia — Corn belt(dollars per ton) 529  501  550  621
    UAN — Corn belt(dollars per ton) 240  272  264  314
            
    Natural gas NYMEX(dollars per MMBtu)$2.23 $2.66 $2.22 $2.58


    Q4 2024 Outlook

    The table below summarizes our outlook for certain operational statistics and financial information for the fourth quarter of 2024. See “Forward-Looking Statements” above.

     Q4 2024
     Low High
    Petroleum   
    Total throughput(bpd) 200,000   215,000 
    Direct operating expenses(in millions)(1)$100  $110 
    Turnaround(2) 8   12 
        
    Renewables(3)   
    Total throughput(in millions of gallons) 17   22 
    Direct operating expenses(in millions)(1)$9  $11 
        
    Nitrogen Fertilizer   
    Ammonia utilization rates   
    Consolidated 92%  97%
    Coffeyville Fertilizer Facility 90%  95%
    East Dubuque Fertilizer Facility 95%  100%
    Direct operating expenses(in millions)(1)$60  $70 
        
    Capital Expenditures (in millions)(2)   
    Petroleum$38  $42 
    Renewables(3) 1   2 
    Nitrogen Fertilizer 19   23 
    Other 1   3 
    Total capital expenditures$59  $70 

     _________________

    (1) Direct operating expenses are shown exclusive of depreciation and amortization, turnaround expenses, and inventory valuation impacts.
    (2) Turnaround and capital expenditures are disclosed on an accrual basis.
    (3) As of September 30, 2024, Renewables does not meet the definition of a reportable segment as defined under Accounting Standards Codification 280.

    Non-GAAP Reconciliations

    Reconciliation of Net Income to EBITDA and Adjusted EBITDA

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024   2023   2024   2023 
    Net (loss) income$(122) $354  $5  $781 
    Interest expense, net 18   11   56   44 
    Income tax (benefit) expense (6)  84   (14)  185 
    Depreciation and amortization 75   81   224   221 
    EBITDA (35)  530   271   1,231 
    Adjustments:       
    Revaluation of RFS liability, unfavorable (favorable) 59   (174)  (32)  (228)
    Unrealized loss on derivatives, net 9   48   16   35 
    Inventory valuation impacts, unfavorable (favorable) 30   (91)  (6)  (44)
    Adjusted EBITDA$63  $313  $249  $994 


    Reconciliation of     Basic and Diluted (Loss) Earnings per Share to Adjusted (Loss) Earnings per Share

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024   2023   2024   2023 
    Basic and diluted (loss) earnings per share$(1.24) $3.51  $(0.22) $6.74 
    Adjustments:(1)       
    Revaluation of RFS liability, unfavorable (favorable) 0.44   (1.30)  (0.24)  (1.69)
    Unrealized loss on derivatives, net 0.07   0.36   0.12   0.26 
    Inventory valuation impacts, unfavorable (favorable) 0.23   (0.68)  (0.04)  (0.33)
    Adjusted (loss) earnings per share$(0.50) $1.89  $(0.38) $4.98 

     _________________

    (1) Amounts are shown after-tax, using the Company’s marginal tax rate, and are presented on a per share basis using the weighted average shares outstanding for each period.

    Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024   2023   2024   2023 
    Net cash provided by operating activities$48  $370  $306  $984 
    Less:       
    Capital expenditures (34)  (50)  (124)  (150)
    Capitalized turnaround expenditures (2)  (3)  (46)  (53)
    Return of equity method investment 1   1   5   21 
    Free cash flow$13  $318  $141  $802 


    Reconciliation of     Petroleum Segment Net (Loss) Income to EBITDA and Adjusted EBITDA

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024   2023   2024   2023 
    Petroleum net (loss) income$(110) $460  $35  $913 
    Interest income, net (5)  (26)  (16)  (65)
    Depreciation and amortization 40   50   133   141 
    Petroleum EBITDA (75)  484   152   989 
    Adjustments:       
    Revaluation of RFS liability, unfavorable (favorable) 59   (174)  (32)  (228)
    Unrealized loss on derivatives, net 9   53   16   37 
    Inventory valuation impacts, unfavorable (favorable)(1) 31   (82)  (8)  (48)
    Petroleum Adjusted EBITDA$24  $281  $128  $750 


    Reconciliation of     Petroleum Segment Gross (Loss) Profit to Refining Margin and Adjusted Refining Margin

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024   2023   2024   2023 
    Net sales$1,648  $2,298  $5,165  $6,290 
    Less:       
    Cost of materials and other (1,604)  (1,691)  (4,645)  (4,939)
    Direct operating expenses (exclusive of depreciation and amortization) (100)  (105)  (320)  (310)
    Depreciation and amortization (40)  (50)  (133)  (141)
    Gross (loss) profit (96)  452   67   900 
    Add:       
    Direct operating expenses (exclusive of depreciation and amortization) 100   105   320   310 
    Depreciation and amortization 40   50   133   141 
    Refining margin 44   607   520   1,351 
    Adjustments:       
    Revaluation of RFS liability, unfavorable (favorable) 59   (174)  (32)  (228)
    Unrealized loss on derivatives, net 9   53   16   37 
    Inventory valuation impacts, unfavorable (favorable)(1) 31   (82)  (8)  (48)
    Adjusted refining margin$143  $404  $496  $1,112 

     _________________

    (1) The Petroleum Segment’s basis for determining inventory value under GAAP is First-In, First-Out (“FIFO”). Changes in crude oil prices can cause fluctuations in the inventory valuation of crude oil, work in process and finished goods, thereby resulting in a favorable inventory valuation impact when crude oil prices increase and an unfavorable inventory valuation impact when crude oil prices decrease. The inventory valuation impact is calculated based upon inventory values at the beginning of the accounting period and at the end of the accounting period. In order to derive the inventory valuation impact per total throughput barrel, we utilize the total dollar figures for the inventory valuation impact and divide by the number of total throughput barrels for the period.

    Reconciliation of Petroleum Segment Total Throughput Barrels and Metrics per Total Throughput Barrel

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
      2024  2023  2024  2023
    Total throughput barrels per day 189,294  212,420  190,427  203,388
    Days in the period 92  92  274  273
    Total throughput barrels 17,415,033  19,542,631  52,176,994  55,524,925
            
    (in millions, except per total throughput barrel)       
    Refining margin$44 $607 $520 $1,351
    Refining margin per total throughput barrel$2.53 $31.05 $9.96 $24.33
            
    Adjusted refining margin$143 $404 $496 $1,112
    Adjusted refining margin per total throughput barrel$8.23 $20.73 $9.51 $20.02
            
    Direct operating expenses (exclusive of depreciation and amortization)$100 $105 $320 $310
    Direct operating expenses per total throughput barrel$5.72 $5.39 $6.14 $5.58


    Reconciliation of     Nitrogen Fertilizer Segment Net Income to EBITDA and Adjusted EBITDA

     Three Months Ended
    September 30,    		 Nine Months Ended
    September 30,
    (in millions) 2024  2023  2024  2023
    Nitrogen Fertilizer net income$4 $1 $43 $162
    Interest expense, net 7  8  22  22
    Depreciation and amortization 25  23  64  59
    Nitrogen Fertilizer EBITDA and Adjusted EBITDA$36 $32 $129 $243

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