CVR Energy Inc. · NYSE:CVI
CVR Energy — Investor Presentation (January 2025)
29 slides from CVR Energy's investor presentation, Jan 7, 2025
Slide 1: Investor Presentation January 2025
Investor Presentation January 2025
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 are driven by our people, inform the way we
Slide 4: Company Overview
Company Overview Company Highlights Business Segments • Founded: 2006 Petroleum Segment: • Headquarters: Sugar Land, TX ▪ Two strategically located Mid-Continent refineries • Employees: 1,550+ close to Cushing, Oklahoma. Total nameplate capacity 206,500 bpd. • Description: CVR Energy (NYSE: CVI) is
Slide 5: Strategic Priorities
Strategic Priorities Focus on EH&S Focusing on improvements in Environmental, Health and Safety Matters – Safety is Job #1 Performance Consolidated Total Recordable Incident Rate (“TRIR”) declined approximately 20% in 2024 compared to 2023, including declines of approximately 18% in the Petroleum Se
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: Petroleum Segment
PETROLEUM SEGMENT
Slide 8: Asset Footprint
Asset Footprint Mid-Continent Refineries Nameplate crude oil capacity of 206,500 bpd across two refineries ▪ 3Q 2024 total throughput of 189,294 bpd, impacted by unplanned downtime related to external power supply outages ▪ FY 2023 total throughput of 208,219 bpd; Crude oil capacity utilization of a
Slide 9: Strategically Located Mid-Con Refineries
Strategically Located Mid-Con Refineries Multiple Product Sales Outlets Focused on maximizing refined product netbacks and participating in renewable fuel blending economics and internal generation of RINs whenever possible. For the twelve months ended September 30, 2024: ▪ Approximately 21% of refi
Slide 10: High-Quality Refining Assets
High-Quality Refining Assets CVR’s high-quality and complex assets allow us to source and process a variety of feedstocks allowing CVR optionality to navigate crack spread volatility while maintaining high utilization rates Consolidated High Utilization Rates (1) Total Throughput and Production Mix(
Slide 11: Constructive Macro Environment
Constructive Macro Environment US Gasoline Demand PADD II Gasoline Demand US Diesel Demand PADD II Diesel Demand Source: EIA 10
Slide 12: Constructive Macro Environment
Constructive Macro Environment US Gasoline Inventories PADD II Gasoline Inventories US Diesel Inventories PADD II Diesel Inventories Source: EIA 11
Slide 13: Growing Focus on Renewable Biofuels
Growing Focus on Renewable Biofuels(1) ▪ Conversion of the existing hydrocracker at the Wynnewood Refinery to renewable diesel service and retooling the refinery for maximum condensate processing. Renewable Diesel Phase 1: ▪ Capacity of 100 million gallons per year of washed and refined soybean oil
Slide 14: Renewable Diesel Initiatives
Renewable Diesel Initiatives Wynnewood Phase 1&2 Project KSAAT Economics Project at Wynnewood 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
Slide 15: Capital Expenditures and Turnarounds
Capital Expenditures and Turnarounds Total Estimated 2025 Petroleum Segment and Other Capex of $110MM - $135MM ▪ Maintenance capex estimated at $73MM to $87MM. ▪ Growth capex estimated at $37MM to $48MM. ▪ Wynnewood Alky Project accounts for a significant portion of the expected 2025 growth capex sp
Slide 16: Fertilizer Segment
FERTILIZER SEGMENT
Slide 17: Stable Trends in Fertilizer Supply & Demand
Stable Trends in Fertilizer Supply & Demand Corn Stocks to Use US Nitrogen Supply ▪ Fertilizers typically represent approximately 15% of ▪ Major global nitrogen capacity build cycle largely farmers’ cost structure and significantly improve yields. complete in 2017/2018, and additional tons have been
Slide 18: Strong Demand for Corn in the U.S.
Strong Demand for Corn in the U.S. U.S. Domestic Corn Use ▪ 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) Domestic Corn
Slide 19: Recent Domestic Nitrogen Fertilizer Market Conditions
Recent Domestic Nitrogen Fertilizer Market Conditions ▪ Inventories of nitrogen fertilizers across the industry were lower than normal starting the new year after a 2023 robust fall application period. ▪ Corn Belt and UAN and ammonia prices for spring delivery were approximately $280 - $295/ton and
Slide 20: 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 East Dubuque, IL ▪ Rail loading rack at the Coffeyville facility provides significant logistics optionality west
Slide 21: Key Operating Statistics
Key Operating Statistics Consolidated Production Volumes(1) Consolidated Ammonia Utilization Consolidated Feedstock Costs(1) Consolidated Sales Revenue(1)(2) Urea Products 6% Ammonia 27% UAN 67% (1) For the twelve months ended September 30, 2024. (2) Excludes freight and other. 20
Slide 22: Capital Expenditures and Turnaround Expenses
Capital Expenditures and Turnaround Expenses 2025 Total Capex budget of $55MM - $70MM ▪ Maintenance capex estimated at $35MM - $45MM. ▪ Growth capex estimated at $20MM - $25MM. ▪ Majority of planned growth capex to be funded through reserves taken over 2023 and 2024. 2025 Turnaround expense estimate
Slide 23: Appendix
APPENDIX
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA represents EBITDA 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 that we deem useful. Adjus
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Energy, Inc. 2020 2021 2022 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 LTM Net Income (loss) $ (320) $ 74 $ 644 $ 878 $ 97 $ 90 $ 38 $ (122) $ 103 Add: Interest expense and other financing costs, net of interest income 130 117 85 52 9 20 19 18 66 Add: Inco
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Petroleum Segment (In USD Millions, except per bbl data) Refining Margin and Adjusted Refining Margin 2020 2021 2022 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 LTM Net sales $ 3,586 $ 6,721 $ 9,919 $ 8,287 $ 1,997 $ 1,722 $ 1,795 $ 1,648 $ 7,162 Less: Cost of materials and othe
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures (In USD Millions) CVR Partners, LP 2020 2021 2022 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 LTM Net Income (loss) $ (98) $ 78 $ 287 $ 172 $ 10 $ 13 $ 26 $ 4 $ 53 Add: Interest expense and other financing costs, net of interest income 63 61 34 29 7 8 8 7 30 Add: Depreciation an
Slide 28: 2024 & 2025 Est. Capital Expenditures
2024 & 2025 Est. Capital Expenditures 2023 Actual 2024 Estimate 2025 Estimate Maintenance Growth Total Maintenance Growth Total Maintenance Growth Total Low High Low High Low High Low High Low High Low High Petroleum $ 94 $ 14 $ 108 $ 88 $ 98 $ 31 $ 34 $ 119 $ 132 $ 70 $ 80 $ 35 $ 45 $ 105 $ 125 Nit
Slide 29: Simplified Organizational Structure
Simplified Organizational Structure Icahn Public Enterprises L.P. & Affiliates 33.7 % 66.3 % CVR Energy, Inc. NYSE: CVI CVR GP, LLC Public N-E GP Interest 1.7 % Other Petroleum Segment CVR Partners, LP Subsidiaries Subsidiaries 36.8 % NYSE: UAN 61.5 % (including Renewables) 40% JV Entity: Enable Sou