CVR Energy, Inc. (CVI) Bundle
A Brief History of CVR Energy
CVR Energy, Inc., a diversified holding company, operates primarily in the petroleum and nitrogen fertilizer segments. As of 2024, the company has faced various operational challenges and market fluctuations impacting its financial performance.
Financial Performance Overview
For the nine months ended September 30, 2024, CVR Energy reported a net income of $5 million, a significant decline from $781 million in the same period of 2023. This decline was primarily driven by decreased production and unfavorable market conditions.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $5 | $781 |
| Operating Income (in millions) | $271 | $1,231 |
| Cash Flows from Operating Activities (in millions) | $306 | $984 |
| Net Sales (in millions) | $1,648 | $2,298 |
| Refining Margin (in millions) | $520 | $1,351 |
Segment Performance
CVR Energy's operations are divided into two main segments: Petroleum and Nitrogen Fertilizer. For the three months ended September 30, 2024, the petroleum segment reported a net loss of $110 million, compared to a net income of $460 million in the prior year. The decline was attributed to reduced crack spreads and unplanned outages at refineries.
In the Nitrogen Fertilizer segment, net sales for the nine months ended September 30, 2024 were $386 million, down from $540 million in 2023. The decrease reflects unfavorable pricing conditions and reduced sales volumes.
| Segment | Net Sales (in millions) | Operating Income (in millions) |
|---|---|---|
| Petroleum Segment | $1,648 | ($110) |
| Nitrogen Fertilizer Segment | $386 | $43 |
Market Conditions and Challenges
The company has faced significant challenges, including reduced gasoline and distillate crack spreads, which averaged $19.25 per barrel for the nine months ended September 30, 2024, compared to $35.10 per barrel in 2023. Additionally, the average price for Renewable Identification Numbers (RINs) decreased by 47.5% during the third quarter of 2024 compared to the same period in 2023.
Liquidity and Debt Position
As of September 30, 2024, CVR Energy had total liquidity of approximately $863 million, consisting of $534 million in cash and cash equivalents, $290 million available under its ABL Credit Agreement, and $39 million under CVR Partners’ Credit Agreement. The company’s long-term debt stood at $1.543 billion.
| Debt Type | Amount (in millions) |
|---|---|
| 5.75% Senior Notes, due February 2028 | $400 |
| 8.50% Senior Notes, due January 2029 | $600 |
| 6.125% Senior Secured Notes, due June 2028 | $550 |
Dividends and Shareholder Returns
In 2024, CVR Energy declared total quarterly distributions of $58 million, reflecting ongoing commitments to return capital to shareholders despite the challenging market environment.
| Quarter | Distribution (in millions) |
|---|---|
| Q1 2024 | $20 |
| Q2 2024 | $20 |
| Q3 2024 | $18 |
CVR Energy continues to navigate a complex operational landscape, balancing its commitments to shareholders while addressing the challenges posed by market volatility and operational disruptions.
A Who Owns CVR Energy, Inc. (CVI)
Ownership Structure
As of September 30, 2024, CVR Energy, Inc. (CVI) has a significant ownership stake held by its parent company, Icahn Enterprises L.P. (IEP), which owns approximately 66% of the outstanding common stock of CVR Energy. The remaining shares are held by public investors and institutional shareholders.
Shareholder Breakdown
| Shareholder Type | Ownership Percentage |
|---|---|
| Icahn Enterprises L.P. (IEP) | 66% |
| Public Shareholders | 34% |
CVR Partners, LP Ownership
CVR Energy also has a stake in CVR Partners, LP, where as of September 30, 2024, public common unitholders hold approximately 63% of the outstanding common units. CVR Services, LLC, a wholly owned subsidiary of CVR Energy, holds the remaining 37%.
Board of Directors and Executive Ownership
The board of directors and executives of CVR Energy also own shares in the company, which aligns their interests with those of the shareholders. However, specific ownership percentages by individual board members are typically not disclosed publicly.
Recent Stock Performance
As of September 30, 2024, CVR Energy's stock price has fluctuated significantly throughout the year, reflecting broader market conditions and company performance. The stock was trading at approximately $15.00 per share, down from a high of $24.00 earlier in the year.
Financial Overview
The following table summarizes key financial metrics for CVR Energy as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Assets | $3.878 billion |
| Total Liabilities | $3.022 billion |
| Total Equity | $856 million |
| Net Income (Q3 2024) | $(122) million |
| Basic Earnings Per Share | $(1.24) |
Dividend Payments
In 2024, CVR Energy declared quarterly dividends of $0.50 per share for the first, second, and third quarters, totaling $1.50 for the year so far. The total dividends paid to shareholders in 2024 amounted to $151 million as of September 30, 2024.
Conclusion on Ownership Dynamics
The ownership structure of CVR Energy remains concentrated, with IEP as the dominant shareholder. Public investors and other institutional shareholders play a crucial role, and the company's performance continues to be closely monitored by its stakeholders.
CVR Energy, Inc. (CVI) Mission Statement
Mission Statement
CVR Energy, Inc. aims to be a leading independent petroleum refiner and nitrogen fertilizer manufacturer, committed to providing high-quality products while ensuring operational excellence and environmental stewardship. The company emphasizes sustainable practices and innovation in refining and fertilizer production to meet global energy and agricultural demands.
Financial Overview
As of September 30, 2024, CVR Energy reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales (Petroleum Segment) | $1.6 billion | $2.3 billion | -30.4% |
| Net Sales (Nitrogen Fertilizer Segment) | $125 million | $131 million | -4.6% |
| Operating Loss (Petroleum Segment) | ($119 million) | $431 million | -127.6% |
| Net Loss | ($122 million) | $354 million | -134.5% |
| EBITDA | $224 million | $221 million | +1.4% |
| Basic and Diluted Earnings per Share | ($1.24) | $3.51 | -135.4% |
Operational Highlights
For the three months ended September 30, 2024, CVR Energy's operational metrics included:
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Refining Margin | $44 million | $607 million |
| Refining Margin per Throughput Barrel | $2.53 | $31.05 |
| Crude Oil Throughput (bpd) | 66,781 | 68,176 |
| Ammonia Production (gross tons) | 212,000 | 217,000 |
| UAN Production (in thousands of tons) | 321 | 358 |
Segment Performance
CVR Energy operates through two primary segments: Petroleum and Nitrogen Fertilizer. The financial performance for each segment as of September 30, 2024, is detailed below:
| Segment | Net Sales | Operating Income (Loss) | Net Income (Loss) |
|---|---|---|---|
| Petroleum | $1.6 billion | ($119 million) | ($110 million) |
| Nitrogen Fertilizer | $125 million | $25 million | $35 million |
Liquidity and Debt
As of September 30, 2024, CVR Energy's liquidity position included:
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $534 million |
| Available Credit under ABL | $290 million |
| Total Long-term Debt | $1.543 billion |
CVR Energy's total liabilities and equity as of September 30, 2024, amounted to $3.878 billion.
How CVR Energy, Inc. (CVI) Works
Company Overview
CVR Energy, Inc. operates primarily in two segments: Petroleum and Nitrogen Fertilizer. The Petroleum Segment focuses on refining and marketing high-value transportation fuels, primarily gasoline and diesel. The Nitrogen Fertilizer Segment, through CVR Partners, LP, produces and markets nitrogen fertilizers, mainly urea ammonium nitrate (UAN) and ammonia.
Financial Performance
As of September 30, 2024, CVR Energy reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales (Petroleum Segment) | $1.645 billion | $2.293 billion | $5.155 billion | $6.273 billion |
| Operating (Loss) Income (Petroleum Segment) | $(119) million | $431 million | $9 million | $838 million |
| Net (Loss) Income | $(122) million | $354 million | $5 million | $781 million |
| Basic (Loss) Earnings per Share | $(1.24) | $3.51 | $0.05 | $6.74 |
| Refining Margin | $44 million | $607 million | $520 million | $1.351 billion |
| Refining Margin per Barrel | $2.53 | $31.05 | $9.96 | $24.33 |
Segment Performance
The performance of each segment is critically evaluated based on operating income and EBITDA:
| Segment | Operating (Loss) Income Q3 2024 | Operating Income Q3 2023 | YTD Operating Income 2024 | YTD Operating Income 2023 |
|---|---|---|---|---|
| Petroleum Segment | $(119) million | $431 million | $9 million | $838 million |
| Nitrogen Fertilizer Segment | $11 million | $8 million | $65 million | $184 million |
Cash Flow and Liquidity
CVR Energy's cash flow for the nine months ended September 30, 2024, is summarized as follows:
| Cash Flow Activity | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $306 million | $984 million |
| Net Cash Used in Investing Activities | $(164) million | $(181) million |
| Net Cash Used in Financing Activities | $(794) million | $(424) million |
| Net Decrease in Cash | $(652) million | $379 million |
Debt Structure
As of September 30, 2024, CVR Energy's long-term debt consisted of:
| Debt Instrument | Amount (in millions) | Maturity Date |
|---|---|---|
| 5.75% Senior Notes | $400 | February 2028 |
| 8.50% Senior Notes | $600 | January 2029 |
| 6.125% Senior Secured Notes (Nitrogen Fertilizer Segment) | $550 | June 2028 |
| Total Long-term Debt | $1,543 |
Operational Challenges
In 2024, CVR faced challenges such as:
- Unplanned outages at both refineries, resulting in lost profit opportunities estimated at approximately $13 million.
- Increased renewable fuel standard (RFS) related expenses totaling $187 million.
- Production declines due to the Wynnewood Refinery fire and associated maintenance costs.
Market Conditions and Pricing
The average prices for West Texas Intermediate (WTI) crude oil and crack spreads are as follows:
| Period | WTI Average Price ($/bbl) | Group 3 2-1-1 Crack Spread ($/bbl) |
|---|---|---|
| 2022 | $94.41 | $36.48 |
| 2023 | $77.57 | $35.10 |
| 2024 (through September) | $77.62 | $19.25 |
Production and Utilization Metrics
Utilization and production volumes for the Nitrogen Fertilizer Segment are detailed below:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Ammonia Gross Produced (in thousands of tons) | 212 | 217 |
| Ammonia Net Available for Sale (in thousands of tons) | 61 | 68 |
| UAN Produced (in thousands of tons) | 321 | 358 |
| Utilization Rate | 97% | 99% |
How CVR Energy, Inc. (CVI) Makes Money
Overview of Revenue Streams
CVR Energy, Inc. generates revenue primarily through two segments: the Petroleum Segment and the Nitrogen Fertilizer Segment.
Petroleum Segment
The Petroleum Segment involves refining crude oil into various petroleum products. For the three months ended September 30, 2024, the Petroleum Segment reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $1,648 million | $2,298 million |
| Operating Income (Loss) | $(119) million | $431 million |
| Net Income (Loss) | $(110) million | $460 million |
| Refining Margin | $44 million | $607 million |
| Refining Margin per Throughput Barrel | $2.53 | $31.05 |
For the nine months ended September 30, 2024, the results were as follows:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Sales | $5,165 million | $6,290 million |
| Operating Income | $9 million | $838 million |
| Net Income | $35 million | $913 million |
| Refining Margin | $520 million | $1.4 billion |
| Refining Margin per Throughput Barrel | $9.96 | $24.33 |
Nitrogen Fertilizer Segment
The Nitrogen Fertilizer Segment produces nitrogen-based fertilizers. For the three months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $125 million | $131 million |
| Operating Income | $11 million | $8 million |
| Net Income | $4 million | $1 million |
For the nine months ended September 30, 2024, the results were as follows:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Sales | $386 million | $540 million |
| Operating Income | $65 million | $184 million |
| Net Income | $43 million | $162 million |
Factors Influencing Performance
The performance of CVR Energy is heavily influenced by:
- Crude oil prices and refining margins.
- Natural gas prices impacting nitrogen fertilizer costs.
- Operational issues such as unplanned outages, including the fire at the Wynnewood Refinery.
- Market demand for refined products and fertilizers.
Cash Flow and Financial Position
For the nine months ended September 30, 2024, CVR Energy's cash flows were as follows:
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $306 million | $984 million |
| Net Cash Used in Investing Activities | $(164) million | $(181) million |
| Net Cash Used in Financing Activities | $(794) million | $(424) million |
| Net (Decrease) Increase in Cash | $(652) million | $379 million |
As of September 30, 2024, CVR Energy’s stockholders’ equity stood at:
| Metric | Value |
|---|---|
| Total Stockholders’ Equity | $675 million |
| Accumulated Deficit | $(832) million |
In summary, CVR Energy's financial performance in 2024 has been impacted by various external and internal factors, reflecting challenges in both segments of its business operations. The company continues to navigate a complex environment of fluctuating commodity prices and operational challenges.
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Article updated on 8 Nov 2024
Resources:
- CVR Energy, Inc. (CVI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CVR Energy, Inc. (CVI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CVR Energy, Inc. (CVI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.