DALLAS, Aug. 1, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $15.0 billion as of June 30, 2018. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of June 30, 2018, in products linked to the Alerian Index Series.
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
AM |
305,257,484 |
10,340,701 |
HEP |
151,911,915 |
5,375,510 | |
AMGP |
1,164,270 |
61,732 |
MMP |
1,501,453,809 |
21,735,000 | |
ANDX |
446,822,576 |
10,506,056 |
MPLX |
1,162,174,520 |
34,041,433 | |
APU |
58,778,057 |
1,392,185 |
NBLX |
22,166,701 |
434,130 | |
ARLP |
25,591,033 |
1,394,607 |
NGL |
165,162,738 |
13,213,019 | |
BPL |
604,497,037 |
17,197,640 |
NS |
210,933,016 |
9,312,716 | |
BPMP |
20,189,424 |
961,859 |
NSH |
239,822 |
19,340 | |
BWP |
170,678,160 |
14,688,310 |
PAA |
1,177,071,579 |
49,791,522 | |
CEQP |
183,499,246 |
5,779,504 |
PAGP |
3,213,393 |
134,395 | |
CQP |
173,601,824 |
4,828,980 |
PSXP |
318,554,875 |
6,238,834 | |
CVRR |
20,028,626 |
896,135 |
RMP |
147,346,450 |
8,657,253 | |
DCP |
421,401,442 |
10,654,904 |
SEP |
341,382,494 |
9,638,128 | |
DM |
13,475,016 |
990,810 |
SHLX |
322,823,077 |
14,554,692 | |
EEP |
277,227,481 |
25,363,905 |
SMLP |
12,744,536 |
827,567 | |
ENBL |
176,973,526 |
10,343,280 |
SPH |
28,830,596 |
1,227,356 | |
ENLC |
853,859 |
51,906 |
SUN |
27,065,571 |
1,084,358 | |
ENLK |
303,905,691 |
19,568,943 |
TCP |
165,868,659 |
6,391,856 | |
EPD |
1,503,782,388 |
54,347,032 |
TEGP |
386,005,955 |
17,419,041 | |
EQGP |
355,540 |
15,123 |
TGP |
18,444,324 |
1,094,619 | |
EQM |
356,373,011 |
6,907,792 |
USAC |
16,751,289 |
995,323 | |
ETE |
6,023,303 |
349,177 |
VLP |
17,131,051 |
449,988 | |
ETP |
1,481,856,983 |
77,828,623 |
VNOM |
25,953,041 |
813,320 | |
GEL |
281,851,288 |
12,864,048 |
WES |
571,788,034 |
11,816,244 | |
GLOP |
14,609,467 |
612,556 |
WGP |
826,761 |
23,126 | |
GMLP |
15,169,006 |
981,178 |
WPZ |
1,218,967,796 |
30,031,234 | |
HCLP |
18,789,000 |
1,592,288 |
||||
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 30, 2018, over $15 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2018-index-linked-product-positions-300690263.html
SOURCE Alerian
DALLAS, March 9, 2018 /PRNewswire/ -- Alerian announced the results of the March quarterly review for the Alerian Index Series. All changes will be implemented as of the close of business on Friday, March 16, 2018.
There are no constituent changes to the Alerian MLP Infrastructure Index (AMZI), Alerian Natural Gas MLP Index (ANGI), Alerian Energy Infrastructure Index (AMEI), and the Alerian MLP Closed End Fund Index (AMCI).
In addition, each index will be rebalanced in accordance with their existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of February 28, over $14 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-index-series-march-2018-index-review-300611251.html
SOURCE Alerian
TULSA, Okla., March 6, 2018 /PRNewswire/ -- Velocity Midstream Partners, LLC ("Velocity") announced that it has completed the construction of a 45-mile, 12" crude oil pipeline loop of its existing condensate pipeline through the fairway of the South Central Oklahoma Oil Province ("SCOOP"). The crude oil loop project is supported by expanded commitments from Continental Resources Inc. (NYSE: CLR), an Oklahoma City-based exploration and production company, and CVR Refining, LP (NYSE: CVRR) ("CVR"). Velocity also announced that it has started construction of a 22-mile, 12" crude oil pipeline extension linking the core of the Merge play to its SCOOP pipeline assets. The Merge pipeline will be placed into operation in April 2018. Along with these new pipelines, Velocity also announced the completion of a Joint Tariff agreement with Plains All American Pipeline, L.P. (NYSE: PAA) ("Plains") providing storage and segregated, batched crude transportation to PAA's Cushing terminal.
In addition to the new pipeline projects and transportation arrangements, Velocity has acquired 100% ownership of all of the truck unloading terminals along its pipelines and has expanded and added terminals to provide attractive locations for SCOOP and Merge producers. Upon completion of its Merge terminal just west of Tuttle, OK, Velocity will have six unloading terminals operating 24/7 across the two plays with segregated unloading and storage for crude oil and condensate. Velocity is in discussions with producers to construct an additional 15-mile pipeline extension and a new terminal in central Canadian County.
Velocity's system is now comprised of 125 miles of pipeline capable of flowing 250,000 barrels per day, along with 395,000 barrels of storage and 26 truck unloading bays capable of unloading greater than 100,000 barrels per day. The new crude oil pipeline enables producers in the SCOOP and Merge to segregate their heavier crude barrels produced from the Springer, Sycamore, Meramec and Woodford oil formations from the lighter barrels being produced from the Woodford condensate formation. These segregated pipelines allow Velocity to transport different quality "neat barrels" from the wellhead to premium markets, thereby preserving the best possible pricing for its producer clients.
Velocity's crude and condensate pipelines lie through the core of the SCOOP and Merge plays, allowing Velocity to provide cost effective gathering solutions to producers regardless of crude gravity. Velocity's pipeline corridor is within 10 miles of more than 20 active producers controlling over 1,000,000 proved gross acres of stacked pay from the Woodford, Springer, Sycamore and Meramec formations. Velocity has engineered a condensate stabilization facility with plans for construction this spring to insure producers are able to continually meet the RVP specifications of downstream pipelines and Cushing purchasers. Producers interested in more information about Velocity's gathering and transportation services should contact Velocity CEO Rick Wilkerson at 918-574-2323.
"Velocity appreciates the continued support of Continental Resources and is honored to be working with CVR and Plains to deliver strong, reliable markets to our producer clients in the SCOOP and Merge. CVR is a highly successful downstream entity with vast expertise in refining and logistics," said Rick Wilkerson, Velocity's Chief Executive Officer. "Further, Plains is the premier crude oil transportation and terminal operator of barrels destined for Cushing, and we are proud to be partnered with them to provide a complete well-to-market transportation solution. The attractiveness of Woodford, Springer, Meramec and Sycamore crude to Midcontinent refiners like CVR, coupled with the reduction in crude gathering and transportation costs, provides the producers in the SCOOP and Merge with the Midcontinent's preeminent market options."
"As a part of CVR's continued focus on expanding its logistics business, we are pleased with our partnership with Velocity and its ability to complete the fully envisioned crude oil pipeline project," said Dave Lamp, Chief Executive Officer of CVR. "Velocity has a proven track record of developing, constructing, and operating high quality midstream assets and gathering systems."
About Velocity Midstream Partners, LLC: Velocity (www.velocitymidstream.com) is an independent midstream service provider that engineers, constructs and operates crude oil and natural gas gathering and transportation solutions. Velocity was formed in 2008 by Rick Wilkerson and Mike Parker. Chief Operating Officer Van Nguyen joined Velocity in 2010. Velocity owns and operates crude oil and condensate pipelines and terminals throughout the SCOOP and Merge basins. Since its inception, Velocity has been financially supported with capital commitments exceeding $300 million through its long-standing partnership with Energy Spectrum Partners (www. EnergySpectrum.com).
About Plains All American Pipeline, LP: Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL") and natural gas. PAA owns an extensive network of pipeline transportation, terminal, storage and gathering assets in key crude oil and NGL producing basins, in transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 5 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
About Continental Resources, Inc.: Continental Resources (NYSE: CLR) is a top-15 independent oil producer in the Continental U.S. and a leader in America's energy renaissance. Based in Oklahoma City, Continental is the largest leaseholder and the largest producer in the nation's premier oil field, the Bakken play of North Dakota and Montana. The company also has significant positions in Oklahoma, including its SCOOP Woodford, SCOOP Springer and SCOOP Sycamore discoveries and the STACK plays. With a focus on the exploration and production of oil, Continental has unlocked the technology and resources vital to American energy independence and our nation's leadership in the new world oil market. In 2017, the Company will celebrate 50 years of operations.
SOURCE Velocity Midstream Partners, LLC
SUGAR LAND, Texas, Feb. 26, 2018 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it has filed its annual report on Form 10-K for the fiscal year ended Dec. 31, 2017, with the Securities and Exchange Commission.
The annual report on Form 10-K is available free of charge through the Investor Relations link on the CVR Refining website at www.cvrrefining.com. Unitholders may also receive a hard copy of the annual report on Form 10-K, which includes the audited financial statements, free of charge upon request. Please send requests to the following address:
CVR Refining, LP
Attn: Investor Services
2277 Plaza Drive, Suite 500
Sugar Land, Texas 77479
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 570 miles of owned, leased and joint venture pipelines, approximately 130 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP (281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
View original content with multimedia:http://www.prnewswire.com/news-releases/cvr-refining-files-form-10-k-annual-report-for-fiscal-year-ended-dec-31-2017-300603806.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 22, 2018 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced net income of $88.8 million on net sales of $5,664.2 million for full year 2017, compared to net income of $15.3 million on net sales of $4,431.3 million for full year 2016. Adjusted EBITDA, a non-GAAP financial measure, for full year 2017 was $372.6 million, compared to adjusted EBITDA of $222.8 million for the previous year.
For the fourth quarter of 2017, the company reported a net loss of $29.0 million on net sales of $1,516.7 million, compared to a net loss of $10.7 million on net sales of $1,269.4 million for the fourth quarter of 2016. Adjusted EBITDA for the 2017 fourth quarter was $76.4 million compared to adjusted EBITDA of $27.7 million for the 2016 fourth quarter.
"Stronger crack spreads and record operating rates resulted in overall solid results for CVR Refining in the 2017 full year and fourth quarter," said Dave Lamp, chief executive officer. "The Coffeyville, Kansas, refinery achieved an annual crude oil throughput record of more than 131,000 barrels per day (bpd) and the Wynnewood, Oklahoma, refinery successfully completed its major scheduled plant turnaround in the fourth quarter.
"Looking forward, we will continue to focus on safe and reliable operations while increasing shareholder value by implementing self-help initiatives and developing capital improvements that will meaningfully improve our return on capital employed," Lamp said.
Consolidated Operations
Fourth quarter 2017 throughputs of crude oil and all other feedstocks and blendstocks totaled 203,263 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 223,266 bpd for the same period in 2016.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $11.87 in the 2017 fourth quarter, compared to $7.32 during the same period in 2016. Direct operating expenses (exclusive of depreciation and amortization), including major scheduled turnaround expenses, per crude oil throughput barrel, for the 2017 fourth quarter were $7.78, compared to $4.96 in the fourth quarter of 2016.
Distributions
CVR Refining also announced today a fourth quarter 2017 distribution of 45 cents per common unit. The distribution, as set by the board of CVR Refining GP, LLC, the general partner of CVR Refining, will be paid on March 12, 2018, to unitholders of record on March 5, 2018. CVR Refining's cumulative cash distributions paid or declared for the 2017 full year were $1.39 per common unit.
CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, RINs' costs and cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Fourth Quarter 2017 Earnings Conference Call
CVR Refining previously announced that it will host its fourth quarter 2017 Earnings Conference Call for analysts and investors on Thursday, Feb. 22, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/24488. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/24488. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13676236.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Refining's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Refining's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 570 miles of owned, leased and joint venture pipelines, approximately 130 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
CVR Refining, LP | |||||||||||||||
Financial and Operational Data (all information in this release is unaudited other than the statement of operations and cash flow data for the year ended December 31, 2016 and the balance sheet data as of December 31, 2016). | |||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except per unit data) | |||||||||||||||
Statement of Operations Data: |
|||||||||||||||
Net sales |
$ |
1,516.7 |
$ |
1,269.4 |
$ |
5,664.2 |
$ |
4,431.3 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of materials and other |
1,281.0 |
1,107.5 |
4,804.7 |
3,759.2 |
|||||||||||
Direct operating expenses(1)(2) |
134.5 |
94.7 |
443.8 |
393.4 |
|||||||||||
Depreciation and amortization |
32.5 |
32.6 |
129.3 |
126.3 |
|||||||||||
Cost of sales |
1,448.0 |
1,234.8 |
5,377.8 |
4,278.9 |
|||||||||||
Selling, general and administrative expenses(1) |
21.1 |
18.5 |
78.8 |
71.9 |
|||||||||||
Depreciation and amortization |
1.1 |
0.8 |
3.8 |
2.7 |
|||||||||||
Operating income |
46.5 |
15.3 |
203.8 |
77.8 |
|||||||||||
Interest expense and other financing costs |
(12.0) |
(11.7) |
(47.2) |
(43.4) |
|||||||||||
Interest income |
0.1 |
0.1 |
0.5 |
0.1 |
|||||||||||
Loss on derivatives, net |
(65.0) |
(14.6) |
(69.8) |
(19.4) |
|||||||||||
Other income, net |
1.4 |
0.2 |
1.5 |
0.2 |
|||||||||||
Income (loss) before income tax expense |
(29.0) |
(10.7) |
88.8 |
15.3 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Net income (loss) |
$ |
(29.0) |
$ |
(10.7) |
$ |
88.8 |
$ |
15.3 |
|||||||
Net income (loss) per common unit - basic and diluted |
$ |
(0.20) |
$ |
(0.07) |
$ |
0.60 |
$ |
0.10 |
|||||||
Adjusted EBITDA* |
$ |
76.4 |
$ |
27.7 |
$ |
372.6 |
$ |
222.8 |
|||||||
Available cash for distribution* |
$ |
65.6 |
$ |
— |
$ |
204.2 |
$ |
0.3 |
|||||||
Weighted average, number of common units outstanding: |
|||||||||||||||
Basic and diluted |
147.6 |
147.6 |
147.6 |
147.6 |
________________ |
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses and selling, general and administrative expenses for the three months and years ended December 31, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses. |
(2) Direct operating expenses includes $43.0 million and $80.4 million of major scheduled turnaround expenses during the three months and year ended December 31, 2017, respectively. Direct operating expenses includes $0.0 million and $31.5 million of major scheduled turnaround expenses during the three months and year ended December 31, 2016, respectively. |
As of December 31, | |||||||
2017 |
2016 | ||||||
(audited) | |||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
173.8 |
$ |
314.1 |
|||
Working capital |
217.5 |
313.7 |
|||||
Total assets |
2,269.9 |
2,331.9 |
|||||
Total debt, including current portion |
540.6 |
541.5 |
|||||
Total partners' capital |
1,246.8 |
1,296.7 |
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
(136.4) |
$ |
81.4 |
$ |
177.9 |
$ |
267.8 |
|||||||
Investing activities(1) |
(109.5) |
(21.3) |
(176.1) |
(107.9) |
|||||||||||
Financing activities |
(140.7) |
(31.9) |
(142.1) |
(33.1) |
|||||||||||
Net cash flow |
$ |
(386.6) |
$ |
28.2 |
$ |
(140.3) |
$ |
126.8 |
|||||||
Capital expenditures for property, plant and equipment |
|||||||||||||||
Maintenance capital expenditures |
$ |
19.7 |
$ |
13.5 |
$ |
77.7 |
$ |
63.6 |
|||||||
Growth capital expenditures |
13.9 |
5.4 |
22.0 |
38.7 |
|||||||||||
Total capital expenditures |
$ |
33.6 |
$ |
18.9 |
$ |
99.7 |
$ |
102.3 |
_______________________________ | |
(1) |
Investing activities for the three months and year ended December 31, 2017 includes investments in affiliate joint ventures, net of return of investment, totaling $75.9 million and $76.5 million, respectively. |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
3.97 |
$ |
1.81 |
$ |
3.83 |
$ |
2.10 |
|||||||
Refining margin* |
13.63 |
8.49 |
11.50 |
9.27 |
|||||||||||
FIFO impact, favorable |
(1.76) |
(1.17) |
(0.40) |
(0.72) |
|||||||||||
Refining margin adjusted for FIFO impact* |
11.87 |
7.32 |
11.10 |
8.55 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
7.78 |
4.96 |
5.94 |
5.43 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.29 |
4.96 |
4.86 |
4.99 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
7.06 |
4.64 |
5.55 |
5.08 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.80 |
$ |
4.64 |
$ |
4.55 |
$ |
4.67 |
|||||||
Barrels sold (barrels per day) |
207,112 |
221,921 |
218,912 |
211,643 |
________________ |
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended |
Year Ended | ||||||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||||||
% |
% |
% |
% | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
182,339 |
89.7 |
185,154 |
82.9 |
194,613 |
89.8 |
177,256 |
84.8 |
|||||||||||||||||||
Medium |
— |
3,160 |
1.4 |
— |
— |
2,525 |
1.2 |
||||||||||||||||||||
Heavy sour |
5,657 |
2.8 |
19,108 |
8.6 |
10,135 |
4.7 |
18,261 |
8.7 |
|||||||||||||||||||
Total crude oil throughput |
187,996 |
92.5 |
207,422 |
92.9 |
204,748 |
94.5 |
198,042 |
94.7 |
|||||||||||||||||||
All other feedstocks and blendstocks |
15,267 |
7.5 |
15,844 |
7.1 |
12,032 |
5.5 |
11,077 |
5.3 |
|||||||||||||||||||
Total throughput |
203,263 |
100.0 |
223,266 |
100.0 |
216,780 |
100.0 |
209,119 |
100.0 |
|||||||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
104,169 |
50.8 |
114,682 |
51.1 |
110,226 |
50.7 |
108,762 |
51.9 |
|||||||||||||||||||
Distillate |
85,550 |
41.8 |
91,021 |
40.5 |
90,409 |
41.6 |
85,092 |
40.6 |
|||||||||||||||||||
Other (excluding internally produced fuel) |
15,128 |
7.4 |
18,782 |
8.4 |
16,818 |
7.7 |
15,751 |
7.5 |
|||||||||||||||||||
Total refining production (excluding internally produced fuel) |
204,847 |
100.0 |
224,485 |
100.0 |
217,453 |
100.0 |
209,605 |
100.0 |
|||||||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.69 |
$ |
1.42 |
$ |
1.59 |
$ |
1.34 |
|||||||||||||||||||
Distillate |
1.89 |
1.52 |
1.66 |
1.36 |
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
55.30 |
$ |
49.29 |
$ |
50.85 |
$ |
43.47 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
0.42 |
0.92 |
0.97 |
0.85 |
|||||||||||
WTI less WCS (heavy sour) |
16.61 |
15.04 |
12.69 |
13.95 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
16.63 |
12.96 |
17.46 |
15.42 |
|||||||||||
Heating Oil |
23.96 |
16.45 |
18.93 |
13.89 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
20.29 |
14.70 |
18.19 |
14.66 |
|||||||||||
PADD II Group 3 Product Basis: |
|||||||||||||||
Gasoline |
(0.14) |
(3.70) |
(1.83) |
(3.62) |
|||||||||||
Ultra Low Sulfur Diesel |
(0.53) |
(2.55) |
(0.50) |
(0.92) |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
16.49 |
9.28 |
15.63 |
11.82 |
|||||||||||
Ultra Low Sulfur Diesel |
23.42 |
13.91 |
18.42 |
12.96 |
|||||||||||
PADD II Group 3 2-1-1 |
19.96 |
11.60 |
17.03 |
12.39 |
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
1,117.3 |
$ |
854.7 |
$ |
3,867.8 |
$ |
2,948.9 |
|||||||
Cost of materials and other |
936.2 |
750.6 |
3,285.8 |
2,513.9 |
|||||||||||
Direct operating expenses(1) |
54.6 |
52.0 |
209.5 |
196.4 |
|||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
31.5 |
|||||||||||
Depreciation and amortization |
17.7 |
18.4 |
71.5 |
69.7 |
|||||||||||
Gross profit |
108.8 |
33.7 |
301.0 |
137.4 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
54.6 |
52.0 |
209.5 |
196.4 |
|||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
31.5 |
|||||||||||
Depreciation and amortization |
17.7 |
18.4 |
71.5 |
69.7 |
|||||||||||
Refining margin* |
181.1 |
104.1 |
582.0 |
435.0 |
|||||||||||
FIFO impact, favorable |
(21.7) |
(15.4) |
(20.2) |
(37.8) |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
159.4 |
$ |
88.7 |
$ |
561.8 |
$ |
397.2 |
|||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
8.87 |
$ |
2.76 |
$ |
6.27 |
$ |
3.03 |
|||||||
Refining margin* |
14.77 |
8.55 |
12.12 |
9.57 |
|||||||||||
FIFO impact, favorable |
(1.77) |
(1.26) |
(0.42) |
(0.83) |
|||||||||||
Refining margin adjusted for FIFO impact* |
13.00 |
7.29 |
11.70 |
8.74 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.46 |
4.27 |
4.36 |
5.02 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.46 |
4.27 |
4.36 |
4.32 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.02 |
3.84 |
4.00 |
4.54 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.02 |
$ |
3.84 |
$ |
4.00 |
$ |
3.92 |
|||||||
Barrels sold (barrels per day) |
147,633 |
146,930 |
143,598 |
137,047 |
________________ |
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses for the three months and years ended December 31, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses. |
Three Months Ended |
Year Ended | ||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||
% |
% |
% |
% | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
127,586 |
87.9 |
113,243 |
78.4 |
121,434 |
86.4 |
104,679 |
78.9 |
|||||||||||||||
Medium |
— |
— |
— |
— |
— |
— |
1,229 |
0.9 |
|||||||||||||||
Heavy sour |
5,657 |
3.9 |
19,108 |
13.2 |
10,135 |
7.2 |
18,261 |
13.8 |
|||||||||||||||
Total crude oil throughput |
133,243 |
91.8 |
132,351 |
91.6 |
131,569 |
93.6 |
124,169 |
93.6 |
|||||||||||||||
All other feedstocks and blendstocks |
11,834 |
8.2 |
12,206 |
8.4 |
9,058 |
6.4 |
8,453 |
6.4 |
|||||||||||||||
Total throughput |
145,077 |
100.0 |
144,557 |
100.0 |
140,627 |
100.0 |
132,622 |
100.0 |
|||||||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
75,531 |
51.2 |
75,273 |
51.1 |
71,915 |
50.4 |
69,303 |
51.4 |
|||||||||||||||
Distillate |
61,568 |
41.7 |
60,550 |
41.1 |
59,593 |
41.7 |
55,790 |
41.4 |
|||||||||||||||
Other (excluding internally produced fuel) |
10,490 |
7.1 |
11,446 |
7.8 |
11,335 |
7.9 |
9,756 |
7.2 |
|||||||||||||||
Total refining production (excluding internally produced fuel) |
147,589 |
100.0 |
147,269 |
100.0 |
142,843 |
100.0 |
134,849 |
100.0 |
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
398.3 |
$ |
413.6 |
$ |
1,792.1 |
$ |
1,478.0 |
|||||||
Cost of materials and other |
345.0 |
356.9 |
1,519.7 |
1,245.4 |
|||||||||||
Direct operating expenses(1) |
36.9 |
42.7 |
153.9 |
165.5 |
|||||||||||
Major scheduled turnaround expenses |
43.0 |
— |
80.4 |
— |
|||||||||||
Depreciation and amortization |
13.2 |
12.8 |
51.7 |
50.7 |
|||||||||||
Gross profit (loss) |
(39.8) |
1.2 |
(13.6) |
16.4 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
36.9 |
42.7 |
153.9 |
165.5 |
|||||||||||
Major scheduled turnaround expenses |
43.0 |
— |
80.4 |
— |
|||||||||||
Depreciation and amortization |
13.2 |
12.8 |
51.7 |
50.7 |
|||||||||||
Refining margin* |
53.3 |
56.7 |
272.4 |
232.6 |
|||||||||||
FIFO impact, favorable |
(8.7) |
(7.0) |
(9.4) |
(14.2) |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
44.6 |
$ |
49.7 |
$ |
263.0 |
$ |
218.4 |
|||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit (loss) |
$ |
(7.90) |
$ |
0.16 |
$ |
(0.51) |
$ |
0.61 |
|||||||
Refining margin* |
10.58 |
8.20 |
10.20 |
8.60 |
|||||||||||
FIFO impact, favorable |
(1.73) |
(1.01) |
(0.35) |
(0.53) |
|||||||||||
Refining margin adjusted for FIFO impact* |
8.85 |
7.19 |
9.85 |
8.07 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
15.86 |
6.19 |
8.77 |
6.12 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
7.32 |
6.19 |
5.76 |
6.12 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
14.60 |
6.20 |
8.52 |
6.06 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
6.74 |
$ |
6.20 |
$ |
5.60 |
$ |
6.06 |
|||||||
Barrels sold (barrels per day) |
59,479 |
74,991 |
75,314 |
74,596 |
________________ |
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses for the three months and years ended December 31, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses. |
Three Months Ended |
Year Ended | ||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||
% |
% |
% |
% | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
54,753 |
94.1 |
71,911 |
91.4 |
73,179 |
96.1 |
72,577 |
94.9 |
|||||||||||||||
Medium |
— |
— |
3,160 |
4.0 |
— |
— |
1,296 |
1.7 |
|||||||||||||||
Heavy sour |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||
Total crude oil throughput |
54,753 |
94.1 |
75,071 |
95.4 |
73,179 |
96.1 |
73,873 |
96.6 |
|||||||||||||||
All other feedstocks and blendstocks |
3,433 |
5.9 |
3,638 |
4.6 |
2,974 |
3.9 |
2,624 |
3.4 |
|||||||||||||||
Total throughput |
58,186 |
100.0 |
78,709 |
100.0 |
76,153 |
100.0 |
76,497 |
100.0 |
|||||||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
28,638 |
50.0 |
39,409 |
51.0 |
38,311 |
51.3 |
39,459 |
52.8 |
|||||||||||||||
Distillate |
23,982 |
41.9 |
30,471 |
39.5 |
30,816 |
41.3 |
29,302 |
39.2 |
|||||||||||||||
Other (excluding internally produced fuel) |
4,638 |
8.1 |
7,336 |
9.5 |
5,483 |
7.4 |
5,995 |
8.0 |
|||||||||||||||
Total refining production (excluding internally produced fuel) |
57,258 |
100.0 |
77,216 |
100.0 |
74,610 |
100.0 |
74,756 |
100.0 |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with accounting principles generally accepted in the United States of America ("GAAP") for the applicable periods, CVR Refining, LP (the "Partnership") also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of materials and other. Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance of as a general indication of the amount above our cost of materials and other at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of materials and other) are taken directly from our Consolidated Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin and refining margin per crude oil throughput barrel are important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of materials and other adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease. In order to derive the refining margin per crude oil throughput barrel adjusted for FIFO impact, we utilize the total dollar figures for refining margin adjusted for FIFO impact as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin adjusted for FIFO impact and refining margin per crude oil throughput barrel adjusted for FIFO impact are important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
The calculation of refining margin, refining margin adjusted for FIFO impact, refining margin per crude oil throughput barrel and refining margin adjusted for FIFO impact per crude oil throughput barrel (each a non-GAAP financial measure), including a reconciliation to the most directly comparable GAAP financial measure for the three months and years ended December 31, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Net sales |
$ |
1,516.7 |
$ |
1,269.4 |
$ |
5,664.2 |
$ |
4,431.3 |
|||||||
Cost of materials and other |
1,281.0 |
1,107.5 |
4,804.7 |
3,759.2 |
|||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
91.5 |
94.7 |
363.4 |
361.9 |
|||||||||||
Major schedule turnaround expenses |
43.0 |
— |
80.4 |
31.5 |
|||||||||||
Depreciation and amortization |
32.5 |
32.6 |
129.3 |
126.3 |
|||||||||||
Gross profit |
68.7 |
34.6 |
286.4 |
152.4 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
91.5 |
94.7 |
363.4 |
361.9 |
|||||||||||
Major schedule turnaround expenses |
43.0 |
— |
80.4 |
31.5 |
|||||||||||
Depreciation and amortization |
32.5 |
32.6 |
129.3 |
126.3 |
|||||||||||
Refining margin |
235.7 |
161.9 |
859.5 |
672.1 |
|||||||||||
FIFO impact, favorable |
(30.4) |
(22.4) |
(29.6) |
(52.1) |
|||||||||||
Refining margin adjusted for FIFO impact |
$ |
205.3 |
$ |
139.5 |
$ |
829.9 |
$ |
620.0 |
|||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Total crude oil throughput barrels per day |
187,996 |
207,422 |
204,748 |
198,042 |
|||||||||||
Days in the period |
92 |
92 |
365 |
366 |
|||||||||||
Total crude oil throughput barrels |
17,295,632 |
19,082,824 |
74,733,020 |
72,483,372 |
|||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
235.7 |
$ |
161.9 |
$ |
859.5 |
$ |
672.1 |
|||||||
Divided by: crude oil throughput barrels |
17.3 |
19.1 |
74.7 |
72.5 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
13.63 |
$ |
8.49 |
$ |
11.50 |
$ |
9.27 |
|||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
205.3 |
$ |
139.5 |
$ |
829.9 |
$ |
620.0 |
|||||||
Divided by: crude oil throughput barrels |
17.3 |
19.1 |
74.7 |
72.5 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
11.87 |
$ |
7.32 |
$ |
11.10 |
$ |
8.55 |
Coffeyville Refinery |
|||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Total crude oil throughput barrels per day |
133,243 |
132,351 |
131,569 |
124,169 |
|||||||||||
Days in the period |
92 |
92 |
365 |
366 |
|||||||||||
Total crude oil throughput barrels |
12,258,356 |
12,176,292 |
48,022,685 |
45,445,854 |
|||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
181.1 |
$ |
104.1 |
$ |
582.0 |
$ |
435.0 |
|||||||
Divided by: crude oil throughput barrels |
12.3 |
12.2 |
48.0 |
45.4 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
14.77 |
$ |
8.55 |
$ |
12.12 |
$ |
9.57 |
|||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
159.4 |
$ |
88.7 |
$ |
561.8 |
$ |
397.2 |
|||||||
Divided by: crude oil throughput barrels |
12.3 |
12.2 |
48.0 |
45.4 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
13.00 |
$ |
7.29 |
$ |
11.70 |
$ |
8.74 |
Wynnewood Refinery |
|||||||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Total crude oil throughput barrels per day |
54,753 |
75,071 |
73,179 |
73,873 |
|||||||||||
Days in the period |
92 |
92 |
365 |
366 |
|||||||||||
Total crude oil throughput barrels |
5,037,276 |
6,906,532 |
26,710,335 |
27,037,518 |
|||||||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
53.3 |
$ |
56.7 |
$ |
272.4 |
$ |
232.6 |
|||||||
Divided by: crude oil throughput barrels |
5.0 |
6.9 |
26.7 |
27.0 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
10.58 |
$ |
8.20 |
$ |
10.20 |
$ |
8.60 |
|||||||
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
44.6 |
$ |
49.7 |
$ |
263.0 |
$ |
218.4 |
|||||||
Divided by: crude oil throughput barrels |
5.0 |
6.9 |
26.7 |
27.0 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
8.85 |
$ |
7.19 |
$ |
9.85 |
$ |
8.07 |
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, (favorable) unfavorable; (ii) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA); (iii) (gain) loss on derivatives, net and (iv) current period settlements on derivative contracts.
We present Adjusted EBITDA because it is the starting point for our determination of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. We believe that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three months and years ended December 31, 2017 and 2016 is as follows:
Three Months Ended |
Year Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Net income (loss) |
$ |
(29.0) |
$ |
(10.7) |
$ |
88.8 |
$ |
15.3 |
|||||||
Add: |
|||||||||||||||
Interest expense and other financing costs, net of interest income |
11.9 |
11.6 |
46.7 |
43.3 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
33.6 |
33.4 |
133.1 |
129.0 |
|||||||||||
EBITDA |
16.5 |
34.3 |
268.6 |
187.6 |
|||||||||||
Add: |
|||||||||||||||
FIFO impact, favorable |
(30.4) |
(22.4) |
(29.6) |
(52.1) |
|||||||||||
Major scheduled turnaround expenses |
43.0 |
— |
80.4 |
31.5 |
|||||||||||
Loss on derivatives, net |
65.0 |
14.6 |
69.8 |
19.4 |
|||||||||||
Current period settlements on derivative contracts(1) |
(17.7) |
1.2 |
(16.6) |
36.4 |
|||||||||||
Adjusted EBITDA |
$ |
76.4 |
$ |
27.7 |
$ |
372.6 |
$ |
222.8 |
_________________________ | |
(1) |
Represents the portion of gain (loss) on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
Available cash for distribution will generally equal Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and, to the extent applicable, (iv) reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. Available cash for distribution is not a recognized term under GAAP. Available cash for distribution should not be considered in isolation or as an alternative to net income (loss) or operating income (loss) as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash for distribution as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
A reconciliation of Adjusted EBITDA to Available cash for distribution for the three months and year ended December 31, 2017 is as follows:
Three Months Ended |
Year Ended | ||||||
(in millions, except per unit data) | |||||||
Adjusted EBITDA |
$ |
76.4 |
$ |
372.6 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(40.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(25.0) |
(103.1) |
|||||
Reserves for major scheduled turnaround expenses |
— |
(45.0) |
|||||
Reserves for future operating needs |
— |
(54.5) |
|||||
Add: |
|||||||
Release of previously established cash reserves |
24.2 |
74.2 |
|||||
Available cash for distribution |
$ |
65.6 |
$ |
204.2 |
|||
Distribution declared, per common unit(1) |
$ |
0.45 |
$ |
1.39 |
|||
Common units outstanding |
147.6 |
147.6 |
_________________________ | |
(1) |
The Partnership announced a cash distribution of 45 cents per common unit for the fourth quarter of 2017. |
Derivatives Summary. The Partnership enters into commodity swap contracts through crack spread swap agreements with financial counterparties to fix the spread risk between the crude oil the Partnership purchases and the refined products the refineries produce for sale. Through these swaps, the Partnership will sell a fixed differential for the value between the selected refined product benchmark and the benchmark crude oil price, thereby locking in a margin for a portion of the refineries' production. The physical volumes are not exchanged and these contracts are net settled with cash. From time to time, the Partnership holds various NYMEX positions through a third-party clearing house.
The table below summarizes our open commodity swap positions as of December 31, 2017. The positions are primarily in the form of crack spread swap agreements with financial counterparties, wherein the Partnership has locked in differentials at the fixed prices noted below. As of December 31, 2017, the open commodity swap positions for 2018 were comprised of approximately 49.4% for 2-1-1 crack swaps, 25.3% for distillate crack swaps and 25.3% for gasoline crack swaps. Additionally, as of December 31, 2017, the Partnership had open forward purchase and sale commitments for 5.8 million barrels of Canadian crude oil priced at fixed differentials that are not considered probable of physical settlement and are accounted for as derivatives at December 31, 2017. The fair value of the outstanding Canadian crude oil contracts at December 31, 2017 was a net unrealized loss of $26.0 million.
Commodity Swaps |
Barrels |
Fixed Price (1) | |||||
First Quarter 2018 |
7,050,000 |
$ |
18.66 |
||||
Second Quarter 2018 |
3,600,000 |
21.19 |
|||||
Third Quarter 2018 |
3,600,000 |
19.21 |
|||||
Total |
14,250,000 |
$ |
19.44 |
||||
(1) |
Weighted-average price of all positions for period indicated. |
Q1 2018 Outlook. The table below summarizes our outlook for certain refining statistics and financial information for the first quarter of 2018. See "forward looking statements."
Q1 2018 | |||||||
Low |
High | ||||||
Refinery Statistics: |
|||||||
Total crude oil throughput (bpd) |
175,000 |
185,000 |
|||||
Total refining production (bpd) |
185,000 |
195,000 |
|||||
Direct operating expenses(1) (in millions) |
$ |
95.0 |
$ |
105.0 |
|||
Total capital spending (in millions) |
$ |
15.0 |
$ |
25.0 |
_________________________ | |
(1) |
Direct operating expenses are shown exclusive of depreciation and amortization and major scheduled turnaround expenses. |
View original content with multimedia:http://www.prnewswire.com/news-releases/cvr-refining-reports-2017-fourth-quarter-and-full-year-results-and-announces-cash-distribution-of-45-cents-300602609.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas and HOUSTON, Nov. 1, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR) and Plains All American Pipeline, L.P. (NYSE: PAA) today announced the formation of a 50/50 joint venture, Midway Pipeline, LLC, which has acquired the approximately 100-mile, 16-inch Cushing to Broome pipeline system from Plains. The Cushing to Broome pipeline system connects CVR Refining's Coffeyville, Kansas, refinery, which has a rated capacity of 115,000 barrels per calendar day, to the Cushing, Oklahoma, oil hub. Midway will contract with Plains to continue its role as operator of the pipeline.
In a separate transaction, CVR Refining and Plains announced that CVR Refining has agreed to acquire the Cushing to Ellis crude oil pipeline system from Plains. The approximately 100-mile, 8- and 10-inch pipeline system helps link CVR Refining's 70,000-barrel-per-calendar-day Wynnewood, Oklahoma, refinery to Cushing. The acquisition is expected to close in the 2017 fourth quarter.
"We are excited to expand CVR Refining's logistics operations through our acquisition of the Cushing to Ellis pipeline and the Midway joint venture, which provides CVR Refining 50 percent ownership of the Cushing to Broome pipeline," said Jack Lipinski, chief executive officer of CVR Refining. "These acquisitions ensure long-term access to Cushing-based crude oil for our Coffeyville and Wynnewood refineries, securing our mid-continent edge of sourcing price-advantaged crudes."
"We are pleased to announce the planned asset sale with CVR and to work as partners in the strategic joint venture," stated Willie Chiang, chief operating officer – U.S. of Plains All American Pipeline. "These transactions are part of our previously announced asset divestiture program."
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
About Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids ("NGL"), natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 5 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.
For further information, please contact:
CVR Refining, LP
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
Plains All American Pipeline, L.P.
Investor Contact:
Brett Magill
Manager, Investor Relations
(866) 809-1291
Media Contact:
Brad Leone
Director, Communications
(866) 809-1290
View original content with multimedia:http://www.prnewswire.com/news-releases/cvr-refining-and-plains-all-american-pipeline-announce-the-acquisition-of-certain-plains-pipeline-assets-by-cvr-and-formation-of-midway-pipeline-llc-joint-venture-300547111.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Nov. 1, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced third quarter 2017 net income of $70.0 million on net sales of $1,385.8 million, compared to net income of $15.9 million on net sales of $1,163.5 million for the third quarter of 2016. Adjusted EBITDA, a non-GAAP financial measure, for the 2017 third quarter was $138.6 million compared to adjusted EBITDA of $75.3 million for the 2016 third quarter.
For the first nine months of 2017, net income was $117.8 million on net sales of $4,147.5 million, compared to net income of $26.0 million on net sales of $3,161.9 million for the comparable period a year earlier. Adjusted EBITDA for the first nine months of 2017 was $296.2 million, compared to adjusted EBITDA of $195.1 million for the first nine months of 2016.
"Led by the stellar performance of our Coffeyville refinery, we are pleased to announce a third quarter 2017 CVR Refining distribution of 94 cents," said Jack Lipinski, chief executive officer. "However, the over-priced and volatile RIN price continue to adversely affect our business. Unless the Administration and EPA step up to fix this broken program, the future viability of merchant refiners will continue to be at risk.
"The Coffeyville, Kansas, and Wynnewood, Oklahoma, refineries ran well during the 2017 third quarter, posting a total combined crude throughput of 203,093 barrels per day (bpd) despite operational disruptions at both plants," Lipinski said. "In addition, the Wynnewood refinery began planned fall maintenance at the end of September and is on schedule to complete its turnaround in early November. As a result of the large scale and cost of the Wynnewood turnaround, CVR Refining's results will be negatively impacted for the year."
Consolidated Operations
Third quarter 2017 throughputs of crude oil and all other feedstocks and blendstocks totaled 213,606 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 206,733 bpd for the same period in 2016.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $13.72 in the 2017 third quarter, compared to $10.09 during the same period in 2016. Direct operating expenses (exclusive of depreciation and amortization), including major scheduled turnaround expenses, per crude oil throughput barrel, for the 2017 third quarter were $6.47, compared to $5.33 in the third quarter of 2016.
Distributions
CVR Refining also announced today a third quarter 2017 distribution of 94 cents per common unit. The distribution, as set by the board of CVR Refining GP, LLC, the general partner of CVR Refining, will be paid on Nov. 17, 2017, to unitholders of record on Nov. 10, 2017.
CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, RINs' costs and cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Third Quarter 2017 Earnings Conference Call
CVR Refining previously announced that it will host its third quarter 2017 Earnings Conference Call for analysts and investors on Wednesday, Nov. 1, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/23021. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/23021. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13672108.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Refining's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Refining's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
CVR Refining, LP | |||||||||||||||
Financial and Operational Data (all information in this release is unaudited other than the balance sheet data as of December 31, 2016). | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except per unit data) | |||||||||||||||
Statement of Operations Data: |
|||||||||||||||
Net sales |
$ |
1,385.8 |
$ |
1,163.5 |
$ |
4,147.5 |
$ |
3,161.9 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of materials and other |
1,114.4 |
987.5 |
3,523.7 |
2,651.7 |
|||||||||||
Direct operating expenses(1)(2) |
120.9 |
97.0 |
309.3 |
298.7 |
|||||||||||
Depreciation and amortization |
31.8 |
31.9 |
96.8 |
93.7 |
|||||||||||
Cost of sales |
1,267.1 |
1,116.4 |
3,929.8 |
3,044.1 |
|||||||||||
Selling, general and administrative expenses(1) |
18.8 |
18.1 |
57.7 |
53.4 |
|||||||||||
Depreciation and amortization |
1.2 |
0.6 |
2.7 |
1.9 |
|||||||||||
Operating income |
98.7 |
28.4 |
157.3 |
62.5 |
|||||||||||
Interest expense and other financing costs |
(12.0) |
(10.8) |
(35.2) |
(31.7) |
|||||||||||
Interest income |
0.2 |
— |
0.4 |
— |
|||||||||||
Loss on derivatives, net |
(17.0) |
(1.7) |
(4.8) |
(4.8) |
|||||||||||
Other income, net |
0.1 |
— |
0.1 |
— |
|||||||||||
Income before income tax expense |
70.0 |
15.9 |
117.8 |
26.0 |
|||||||||||
Income tax expense (benefit) |
— |
— |
— |
— |
|||||||||||
Net income |
$ |
70.0 |
$ |
15.9 |
$ |
117.8 |
$ |
26.0 |
|||||||
Net income per common unit - basic and diluted |
$ |
0.47 |
$ |
0.11 |
$ |
0.80 |
$ |
0.18 |
|||||||
Adjusted EBITDA* |
$ |
138.6 |
$ |
75.3 |
$ |
296.2 |
$ |
195.1 |
|||||||
Available cash for distribution* |
$ |
138.6 |
$ |
0.3 |
$ |
138.6 |
$ |
0.3 |
|||||||
Weighted average, number of common units outstanding: |
|||||||||||||||
Basic and diluted |
147.6 |
147.6 |
147.6 |
147.6 |
_______________________ |
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses and selling, general and administrative expenses for the three and nine months ended September 30, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses. |
(2) Direct operating expenses includes $21.7 million and $37.4 million of major scheduled turnaround expenses during the three and nine months ended September 30, 2017, respectively. Direct operating expenses includes $0.0 million and $31.5 million of major scheduled turnaround expenses during the three and nine months ended September 30, 2016, respectively. |
As of September 30, |
As of December 31, | ||||||
(audited) | |||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
560.4 |
$ |
314.1 |
|||
Working capital |
467.3 |
313.7 |
|||||
Total assets |
2,500.7 |
2,331.9 |
|||||
Total debt, including current portion |
540.9 |
541.5 |
|||||
Total partners' capital |
1,414.5 |
1,296.7 |
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
63.0 |
$ |
145.6 |
$ |
314.3 |
$ |
186.4 |
|||||||
Investing activities |
(17.8) |
(18.6) |
(66.6) |
(86.6) |
|||||||||||
Financing activities |
(0.5) |
(0.4) |
(1.4) |
(1.2) |
|||||||||||
Net cash flow |
$ |
44.7 |
$ |
126.6 |
$ |
246.3 |
$ |
98.6 |
|||||||
Capital expenditures for property, plant and equipment: |
|||||||||||||||
Maintenance capital expenditures |
$ |
15.1 |
$ |
10.5 |
$ |
58.0 |
$ |
50.1 |
|||||||
Growth capital expenditures |
3.6 |
4.9 |
8.1 |
33.3 |
|||||||||||
Total capital expenditures |
$ |
18.7 |
$ |
15.4 |
$ |
66.1 |
$ |
83.4 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
6.35 |
$ |
2.59 |
$ |
3.79 |
$ |
2.21 |
|||||||
Refining margin* |
14.52 |
9.66 |
10.86 |
9.55 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(0.80) |
0.43 |
0.01 |
(0.56) |
|||||||||||
Refining margin adjusted for FIFO impact* |
13.72 |
10.09 |
10.87 |
8.99 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
6.47 |
5.33 |
5.38 |
5.59 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.31 |
5.33 |
4.73 |
5.00 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
6.26 |
5.04 |
5.08 |
5.24 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
5.13 |
$ |
5.04 |
$ |
4.47 |
$ |
4.68 |
|||||||
Barrels sold (barrels per day) |
210,002 |
209,228 |
222,889 |
208,192 |
____________________ |
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||||||
% |
% |
% |
% | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
196,342 |
91.9 |
176,404 |
85.3 |
198,750 |
89.8 |
174,594 |
85.4 |
|||||||||||||||||||
Medium |
— |
— |
1,983 |
1.0 |
— |
— |
2,321 |
1.1 |
|||||||||||||||||||
Heavy sour |
6,751 |
3.2 |
19,568 |
9.5 |
11,643 |
5.3 |
17,978 |
8.9 |
|||||||||||||||||||
Total crude oil throughput |
203,093 |
95.1 |
197,955 |
95.8 |
210,393 |
95.1 |
194,893 |
95.4 |
|||||||||||||||||||
All other feedstocks and blendstocks |
10,513 |
4.9 |
8,778 |
4.2 |
10,943 |
4.9 |
9,476 |
4.6 |
|||||||||||||||||||
Total throughput |
213,606 |
100.0 |
206,733 |
100.0 |
221,336 |
100.0 |
204,369 |
100.0 |
|||||||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
105,712 |
49.5 |
106,120 |
51.2 |
112,268 |
50.6 |
106,774 |
52.2 |
|||||||||||||||||||
Distillate |
89,655 |
42.0 |
84,669 |
40.9 |
92,046 |
41.5 |
83,101 |
40.6 |
|||||||||||||||||||
Other (excluding internally produced fuel) |
18,107 |
8.5 |
16,390 |
7.9 |
17,385 |
7.9 |
14,738 |
7.2 |
|||||||||||||||||||
Total refining production (excluding internally produced fuel) |
213,474 |
100.0 |
207,179 |
100.0 |
221,699 |
100.0 |
204,613 |
100.0 |
|||||||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.63 |
$ |
1.45 |
$ |
1.56 |
$ |
1.31 |
|||||||||||||||||||
Distillate |
1.67 |
1.45 |
1.58 |
1.30 |
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
48.20 |
$ |
44.94 |
$ |
49.36 |
$ |
41.53 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
0.97 |
1.47 |
1.15 |
0.82 |
|||||||||||
WTI less WCS (heavy sour) |
10.48 |
14.23 |
11.42 |
13.59 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
20.42 |
13.73 |
17.74 |
16.24 |
|||||||||||
Heating Oil |
21.05 |
14.34 |
17.24 |
13.04 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
20.73 |
14.03 |
17.49 |
14.64 |
|||||||||||
PADD II Group 3 Basis: |
|||||||||||||||
Gasoline |
(1.18) |
0.48 |
(2.37) |
(3.59) |
|||||||||||
Ultra Low Sulfur Diesel |
0.85 |
1.01 |
(0.44) |
(0.38) |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
19.23 |
14.21 |
15.37 |
12.65 |
|||||||||||
Ultra Low Sulfur Diesel |
21.90 |
15.35 |
16.80 |
12.65 |
|||||||||||
PADD II Group 3 2-1-1 |
20.57 |
14.78 |
16.09 |
12.65 |
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
939.3 |
$ |
788.1 |
$ |
2,750.5 |
$ |
2,094.1 |
|||||||
Cost of materials and other |
767.7 |
669.9 |
2,349.7 |
1,763.3 |
|||||||||||
Direct operating expenses(1) |
56.7 |
50.7 |
154.9 |
144.5 |
|||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
31.5 |
|||||||||||
Depreciation and amortization |
17.4 |
17.7 |
53.8 |
51.2 |
|||||||||||
Gross profit |
97.5 |
49.8 |
192.1 |
103.6 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
56.7 |
50.7 |
154.9 |
144.5 |
|||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
31.5 |
|||||||||||
Depreciation and amortization |
17.4 |
17.7 |
53.8 |
51.2 |
|||||||||||
Refining margin* |
171.6 |
118.2 |
400.8 |
330.8 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(10.1) |
4.0 |
1.5 |
(22.4) |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
161.5 |
$ |
122.2 |
$ |
402.3 |
$ |
308.4 |
|||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
8.26 |
$ |
4.15 |
$ |
5.37 |
$ |
3.12 |
|||||||
Refining margin* |
14.52 |
9.86 |
11.21 |
9.94 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(0.86) |
0.33 |
0.04 |
(0.67) |
|||||||||||
Refining margin adjusted for FIFO impact* |
13.66 |
10.19 |
11.25 |
9.27 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.80 |
4.23 |
4.33 |
5.29 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.80 |
4.23 |
4.33 |
4.34 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.50 |
3.93 |
3.99 |
4.80 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.50 |
$ |
3.93 |
$ |
3.99 |
$ |
3.94 |
|||||||
Barrels sold (barrels per day) |
136,776 |
140,256 |
142,238 |
133,729 |
____________________ |
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses for the three and nine months ended September 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses. |
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||
% |
% |
% |
% | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
121,710 |
89.6 |
110,825 |
81.0 |
119,361 |
85.8 |
101,803 |
79.2 |
|||||||||||||||
Medium |
— |
— |
— |
— |
— |
— |
1,641 |
1.3 |
|||||||||||||||
Heavy sour |
6,751 |
5.0 |
19,568 |
14.3 |
11,643 |
8.4 |
17,978 |
13.9 |
|||||||||||||||
Total crude oil throughput |
128,461 |
94.6 |
130,393 |
95.3 |
131,004 |
94.2 |
121,422 |
94.4 |
|||||||||||||||
All other feedstocks and blendstocks |
7,415 |
5.4 |
6,399 |
4.7 |
8,124 |
5.8 |
7,193 |
5.6 |
|||||||||||||||
Total throughput |
135,876 |
100.0 |
136,792 |
100.0 |
139,128 |
100.0 |
128,615 |
100.0 |
|||||||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
67,598 |
49.1 |
70,013 |
50.3 |
70,697 |
50.1 |
67,298 |
51.5 |
|||||||||||||||
Distillate |
57,654 |
41.9 |
57,839 |
41.6 |
58,927 |
41.7 |
54,192 |
41.5 |
|||||||||||||||
Other (excluding internally produced fuel) |
12,355 |
9.0 |
11,286 |
8.1 |
11,619 |
8.2 |
9,191 |
7.0 |
|||||||||||||||
Total refining production (excluding internally produced fuel) |
137,607 |
100.0 |
139,138 |
100.0 |
141,243 |
100.0 |
130,681 |
100.0 |
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
445.3 |
$ |
374.3 |
$ |
1,393.7 |
$ |
1,064.4 |
|||||||
Cost of materials and other |
346.9 |
317.7 |
1,174.6 |
888.5 |
|||||||||||
Direct operating expenses(1) |
42.5 |
46.3 |
117.0 |
122.7 |
|||||||||||
Major scheduled turnaround expenses |
21.7 |
— |
37.4 |
— |
|||||||||||
Depreciation and amortization |
12.9 |
12.7 |
38.5 |
37.9 |
|||||||||||
Gross profit (loss) |
21.3 |
(2.4) |
26.2 |
15.3 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
42.5 |
46.3 |
117.0 |
122.7 |
|||||||||||
Major scheduled turnaround expenses |
21.7 |
— |
37.4 |
— |
|||||||||||
Depreciation and amortization |
12.9 |
12.7 |
38.5 |
37.9 |
|||||||||||
Refining margin* |
98.4 |
56.6 |
219.1 |
175.9 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(4.8) |
3.8 |
(0.7) |
(7.3) |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
93.6 |
$ |
60.4 |
$ |
218.4 |
$ |
168.6 |
|||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit (loss) |
$ |
3.10 |
$ |
(0.39) |
$ |
1.21 |
$ |
0.76 |
|||||||
Refining margin* |
14.33 |
9.10 |
10.11 |
8.74 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(0.70) |
0.61 |
(0.03) |
(0.36) |
|||||||||||
Refining margin adjusted for FIFO impact* |
13.63 |
9.71 |
10.08 |
8.38 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
9.35 |
7.45 |
7.13 |
6.10 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
6.18 |
7.45 |
5.40 |
6.10 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
9.53 |
7.29 |
7.01 |
6.01 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
6.30 |
$ |
7.29 |
$ |
5.32 |
$ |
6.01 |
|||||||
Barrels sold (barrels per day) |
73,226 |
68,971 |
80,651 |
74,463 |
____________________ |
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses for the three and nine months ended September 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses. |
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||
% |
% |
% |
% | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
74,632 |
96.0 |
65,579 |
93.8 |
79,389 |
96.6 |
72,791 |
96.1 |
|||||||||||||||
Medium |
— |
— |
1,983 |
2.8 |
— |
— |
680 |
0.9 |
|||||||||||||||
Heavy sour |
— |
— |
— |
— |
— |
— |
— |
— |
|||||||||||||||
Total crude oil throughput |
74,632 |
96.0 |
67,562 |
96.6 |
79,389 |
96.6 |
73,471 |
97.0 |
|||||||||||||||
All other feedstocks and blendstocks |
3,098 |
4.0 |
2,379 |
3.4 |
2,819 |
3.4 |
2,283 |
3.0 |
|||||||||||||||
Total throughput |
77,730 |
100.0 |
69,941 |
100.0 |
82,208 |
100.0 |
75,754 |
100.0 |
|||||||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
38,114 |
50.2 |
36,107 |
53.1 |
41,571 |
51.6 |
39,476 |
53.4 |
|||||||||||||||
Distillate |
32,001 |
42.2 |
26,830 |
39.4 |
33,119 |
41.2 |
28,909 |
39.1 |
|||||||||||||||
Other (excluding internally produced fuel) |
5,752 |
7.6 |
5,104 |
7.5 |
5,766 |
7.2 |
5,547 |
7.5 |
|||||||||||||||
Total refining production (excluding internally produced fuel) |
75,867 |
100.0 |
68,041 |
100.0 |
80,456 |
100.0 |
73,932 |
100.0 |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, CVR Refining, LP (the "Partnership") also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of materials and other. Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of materials and other) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of materials and other adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
The calculation of refining margin and refining margin adjusted for FIFO impact (each a non-GAAP financial measure), including a reconciliation to the most directly comparable GAAP financial measure for the three and nine months ended September 30, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Net sales |
$ |
1,385.8 |
$ |
1,163.5 |
$ |
4,147.5 |
$ |
3,161.9 |
|||||||
Cost of materials and other |
1,114.4 |
987.5 |
3,523.7 |
2,651.7 |
|||||||||||
Direct operating expenses (exclusive of depreciation and amortization and major scheduled turnaround expenses as reflected below) |
99.2 |
97.0 |
271.9 |
267.2 |
|||||||||||
Major scheduled turnaround expenses |
21.7 |
— |
37.4 |
31.5 |
|||||||||||
Depreciation and amortization |
31.8 |
31.9 |
96.8 |
93.7 |
|||||||||||
Gross profit |
118.7 |
47.1 |
217.7 |
117.8 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses (exclusive of depreciation and amortization and major scheduled turnaround expenses as reflected below) |
99.2 |
97.0 |
271.9 |
267.2 |
|||||||||||
Major scheduled turnaround expenses |
21.7 |
— |
37.4 |
31.5 |
|||||||||||
Depreciation and amortization |
31.8 |
31.9 |
96.8 |
93.7 |
|||||||||||
Refining margin |
271.4 |
176.0 |
623.8 |
510.2 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(14.9) |
7.7 |
0.8 |
(29.7) |
|||||||||||
Refining margin adjusted for FIFO impact |
$ |
256.5 |
$ |
183.7 |
$ |
624.6 |
$ |
480.5 |
The calculation of refining margin per crude oil throughput barrel and refining margin adjusted for FIFO impact per crude oil throughput barrel for the three and nine months ended September 30, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Total crude oil throughput barrels per day |
203,093 |
197,955 |
210,393 |
194,893 |
|||||||||||
Days in the period |
92 |
92 |
273 |
274 |
|||||||||||
Total crude oil throughput barrels |
18,684,556 |
18,211,860 |
57,437,289 |
53,400,682 |
|||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
271.4 |
$ |
176.0 |
$ |
623.8 |
$ |
510.2 |
|||||||
Divided by: crude oil throughput barrels |
18.7 |
18.2 |
57.4 |
53.4 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
14.52 |
$ |
9.66 |
$ |
10.86 |
$ |
9.55 |
|||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
256.5 |
$ |
183.7 |
$ |
624.6 |
$ |
480.5 |
|||||||
Divided by: crude oil throughput barrels |
18.7 |
18.2 |
57.4 |
53.4 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
13.72 |
$ |
10.09 |
$ |
10.87 |
$ |
8.99 |
|||||||
Coffeyville Refinery |
|||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Total crude oil throughput barrels per day |
128,461 |
130,393 |
131,004 |
121,422 |
|||||||||||
Days in the period |
92 |
92 |
273 |
274 |
|||||||||||
Total crude oil throughput barrels |
11,818,412 |
11,996,156 |
35,764,092 |
33,269,628 |
|||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
171.6 |
$ |
118.2 |
$ |
400.8 |
$ |
330.8 |
|||||||
Divided by: crude oil throughput barrels |
11.8 |
12.0 |
35.8 |
33.3 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
14.52 |
$ |
9.86 |
$ |
11.21 |
$ |
9.94 |
|||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
161.5 |
$ |
122.2 |
$ |
402.3 |
$ |
308.4 |
|||||||
Divided by: crude oil throughput barrels |
11.8 |
12.0 |
35.8 |
33.3 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
13.66 |
$ |
10.19 |
$ |
11.25 |
$ |
9.27 |
|||||||
Wynnewood Refinery |
|||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Total crude oil throughput barrels per day |
74,632 |
67,562 |
79,389 |
73,471 |
|||||||||||
Days in the period |
92 |
92 |
273 |
274 |
|||||||||||
Total crude oil throughput barrels |
6,866,144 |
6,215,704 |
21,673,197 |
20,131,054 |
|||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
98.4 |
$ |
56.6 |
$ |
219.1 |
$ |
175.9 |
|||||||
Divided by: crude oil throughput barrels |
6.9 |
6.2 |
21.7 |
20.1 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
14.33 |
$ |
9.10 |
$ |
10.11 |
$ |
8.74 |
|||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
93.6 |
$ |
60.4 |
$ |
218.4 |
$ |
168.6 |
|||||||
Divided by: crude oil throughput barrels |
6.9 |
6.2 |
21.7 |
20.1 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
13.63 |
$ |
9.71 |
$ |
10.08 |
$ |
8.38 |
EBITDA and Adjusted EBITDA. EBITDA represents net income before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, (favorable) unfavorable; (ii) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA); (iii) loss on derivatives, net and (iv) current period settlements on derivative contracts. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA for the three and nine months ended September 30, 2017 and 2016 is as follows:
Three Months Ended |
Nine Months Ended | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Net income |
$ |
70.0 |
$ |
15.9 |
$ |
117.8 |
$ |
26.0 |
|||||||
Add: |
|||||||||||||||
Interest expense and other financing costs, net of interest income |
11.8 |
10.8 |
34.8 |
31.7 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
33.0 |
32.5 |
99.5 |
95.6 |
|||||||||||
EBITDA |
114.8 |
59.2 |
252.1 |
153.3 |
|||||||||||
Add: |
|||||||||||||||
FIFO impact, (favorable) unfavorable |
(14.9) |
7.7 |
0.8 |
(29.7) |
|||||||||||
Major scheduled turnaround expenses |
21.7 |
— |
37.4 |
31.5 |
|||||||||||
Loss on derivatives, net |
17.0 |
1.7 |
4.8 |
4.8 |
|||||||||||
Current period settlements on derivative contracts(1) |
— |
6.7 |
1.1 |
35.2 |
|||||||||||
Adjusted EBITDA |
$ |
138.6 |
$ |
75.3 |
$ |
296.2 |
$ |
195.1 |
____________________ | |
(1) |
Represents the portion of loss on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income or operating income as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Ended |
Nine Months Ended | ||||||
(in millions, except per unit data) | |||||||
Adjusted EBITDA |
$ |
138.6 |
$ |
296.2 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(30.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(25.0) |
(78.1) |
|||||
Reserves for major scheduled turnaround expenses |
(15.0) |
(45.0) |
|||||
Reserves for future operating needs |
— |
(54.5) |
|||||
Add: |
|||||||
Release of previously established cash reserves |
50.0 |
50.0 |
|||||
Available cash for distribution |
$ |
138.6 |
$ |
138.6 |
|||
Available cash for distribution, per common unit |
$ |
0.94 |
$ |
0.94 |
|||
Common units outstanding |
147.6 |
147.6 |
Derivatives Summary. The Partnership enters into commodity swap contracts through crack spread swap agreements with financial counterparties to fix the spread risk between the crude oil the Partnership purchases and the refined products the refineries produce for sale. Through these swaps, the Partnership will sell a fixed differential for the value between the selected refined product benchmark and the benchmark crude oil price, thereby locking in a margin for a portion of the refineries' production. The physical volumes are not exchanged and these contracts are net settled with cash. From time to time, the Partnership holds various NYMEX positions through a third-party clearing house.
The table below summarizes our open commodity swap positions as of September 30, 2017. The positions are primarily in the form of crack spread swap agreements with financial counterparties, wherein the Partnership has locked in differentials at the fixed prices noted below. As of September 30, 2017, the open commodity swap positions for 2017 and 2018 were comprised of approximately 39.8% for 2-1-1 crack swaps, 30.1% for distillate crack swaps and 30.1% for gasoline crack swaps.
Commodity Swaps |
Barrels |
Fixed Price (1) | |||||
Fourth Quarter 2017 |
7,050,000 |
$ |
17.80 | ||||
First Quarter 2018 |
7,050,000 |
18.66 | |||||
Second Quarter 2018 |
1,950,000 |
21.09 | |||||
Third Quarter 2018 |
150,000 |
19.22 | |||||
Total |
16,200,000 |
$ |
18.59 |
________________ | |
(1) |
Weighted-average price of all positions for period indicated. |
Q4 2017 Outlook. The table below summarizes our outlook for certain refining statistics for the fourth quarter of 2017. See "Forward-Looking Statements."
Q4 2017 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
185,000 |
195,000 | |||
Total refining production (bpd) |
200,000 |
215,000 |
View original content with multimedia:http://www.prnewswire.com/news-releases/cvr-refining-reports-2017-third-quarter-results-and-announces-cash-distribution-of-94-cents-300547005.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Oct. 18, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2017 third quarter results on Wednesday, Nov. 1, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on Nov. 1 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/23021. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/23021. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13672108.
CVR Refining's 2017 third quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
View original content with multimedia:http://www.prnewswire.com/news-releases/cvr-refining-announces-2017-third-quarter-earnings-call-300538324.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas, July 27, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced a second quarter 2017 net loss of $19.2 million on net sales of $1,338.2 million, compared to net income of $78.1 million on net sales of $1,164.4 million for the second quarter of 2016. Adjusted EBITDA, a non-GAAP financial measure, for the 2017 second quarter was $43.1 million compared to adjusted EBITDA of $84.7 million for the 2016 second quarter.
For the first six months of 2017, net income was $47.8 million on net sales of $2,761.7 million, compared to net income of $10.1 million on net sales of $1,998.4 million for the comparable period a year earlier. Adjusted EBITDA for the first six months of 2017 was $157.6 million, compared to adjusted EBITDA of $119.8 million for the first six months of 2016.
"CVR Refining operated well during the 2017 second quarter," said Jack Lipinski, chief executive officer. "The Coffeyville and Wynnewood refineries posted a combined crude throughput of 213,841 barrels per day (bpd), with Coffeyville achieving a quarterly crude throughput record of 133,819 bpd.
"Renewable Identification Numbers (RINs) remain the single largest headwind we face," Lipinski said. "The continued volatility and extraordinarily high prices of RINs further proves that we are dealing with a manipulated and contrived market. The EPA must fix this broken system or small, independent merchant refiners will remain in financial distress and at risk of closure."
Consolidated Operations
Second quarter 2017 throughputs of crude oil and all other feedstocks and blendstocks totaled 221,954 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 210,488 bpd for the same period in 2016.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $7.48 in the 2017 second quarter, compared to $9.56 during the same period in 2016. Direct operating expenses (exclusive of depreciation and amortization), including major scheduled turnaround expenses, per crude oil throughput barrel, for the 2017 second quarter were $4.44, compared to $4.56 in the second quarter of 2016.
Distributions
CVR Refining will not pay a cash distribution for the 2017 second quarter. CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, and other cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Second Quarter 2017 Earnings Conference Call
CVR Refining previously announced that it will host its second quarter 2017 Earnings Conference Call for analysts and investors on Thursday, July 27, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the Partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/21800. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/21800. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13666025.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Refining's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Refining's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
CVR Refining, LP | |||||||||||||||
Financial and Operational Data (all information in this release is unaudited other than the balance sheet data as of December 31, 2016). | |||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except per unit data) | |||||||||||||||
Statement of Operations Data: |
|||||||||||||||
Net sales |
$ |
1,338.2 |
$ |
1,164.4 |
$ |
2,761.7 |
$ |
1,998.4 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of materials and other |
1,208.0 |
941.9 |
2,409.3 |
1,664.2 |
|||||||||||
Direct operating expenses(1)(2) |
86.3 |
84.0 |
188.4 |
201.7 |
|||||||||||
Depreciation and amortization |
31.7 |
30.9 |
65.0 |
61.8 |
|||||||||||
Cost of sales |
1,326.0 |
1,056.8 |
2,662.7 |
1,927.7 |
|||||||||||
Selling, general and administrative expenses(1) |
18.9 |
16.8 |
38.9 |
35.3 |
|||||||||||
Depreciation and amortization |
0.7 |
0.7 |
1.5 |
1.3 |
|||||||||||
Operating income (loss) |
(7.4) |
90.1 |
58.6 |
34.1 |
|||||||||||
Interest expense and other financing costs |
(12.0) |
(10.1) |
(23.2) |
(20.9) |
|||||||||||
Interest income |
0.2 |
— |
0.2 |
— |
|||||||||||
Gain (loss) on derivatives, net |
— |
(1.9) |
12.2 |
(3.1) |
|||||||||||
Income (loss) before income tax expense |
(19.2) |
78.1 |
47.8 |
10.1 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Net income (loss) |
$ |
(19.2) |
$ |
78.1 |
$ |
47.8 |
$ |
10.1 |
|||||||
Net income (loss) per common unit - basic and diluted |
$ |
(0.13) |
$ |
0.53 |
$ |
0.32 |
$ |
0.07 |
|||||||
Adjusted EBITDA* |
$ |
43.1 |
$ |
84.7 |
$ |
157.6 |
$ |
119.8 |
|||||||
Available cash for distribution* |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
|||||||
Weighted average, number of common units outstanding: |
|||||||||||||||
Basic and diluted |
147.6 |
147.6 |
147.6 |
147.6 |
* See "Use of Non-GAAP Financial Measures" below.
(1) Direct operating expenses and selling, general and administrative expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses.
(2) Direct operating expenses includes $2.8 million and $15.7 million of major scheduled turnaround expenses during the three and six months ended June 30, 2017, respectively. Direct operating expenses includes $2.1 million and $31.5 million of major scheduled turnaround expenses during the three and six months ended June 30, 2016, respectively.
As of June 30, 2017 |
As of December 31, 2016 | ||||||
(audited) | |||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
515.7 |
$ |
314.1 |
|||
Working capital |
380.4 |
313.7 |
|||||
Total assets |
2,447.1 |
2,331.9 |
|||||
Total debt, including current portion |
541.1 |
541.5 |
|||||
Total partners' capital |
1,344.5 |
1,296.7 |
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
135.2 |
$ |
37.8 |
$ |
251.3 |
$ |
40.8 |
|||||||
Investing activities |
(27.8) |
(24.0) |
(48.8) |
(68.0) |
|||||||||||
Financing activities |
(0.5) |
(0.4) |
(0.9) |
(0.8) |
|||||||||||
Net cash flow |
$ |
106.9 |
$ |
13.4 |
$ |
201.6 |
$ |
(28.0) |
|||||||
Capital expenditures for property, plant and equipment: |
|||||||||||||||
Maintenance capital expenditures |
$ |
25.4 |
$ |
14.3 |
$ |
42.9 |
$ |
39.6 |
|||||||
Growth capital expenditures |
2.4 |
9.7 |
4.5 |
28.4 |
|||||||||||
Total capital expenditures |
$ |
27.8 |
$ |
24.0 |
$ |
47.4 |
$ |
68.0 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
0.63 |
$ |
5.84 |
$ |
2.56 |
$ |
2.01 |
|||||||
Refining margin* |
6.69 |
12.07 |
9.10 |
9.50 |
|||||||||||
FIFO impact, (favorable) unfavorable |
0.79 |
(2.51) |
0.41 |
(1.06) |
|||||||||||
Refining margin adjusted for FIFO impact* |
7.48 |
9.56 |
9.51 |
8.44 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.44 |
4.56 |
4.86 |
5.73 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.29 |
4.45 |
4.46 |
4.84 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.12 |
4.33 |
4.54 |
5.34 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
3.98 |
$ |
4.22 |
$ |
4.16 |
$ |
4.50 |
|||||||
Barrels sold (barrels per day) |
230,345 |
213,368 |
229,439 |
207,669 |
* See "Use of Non-GAAP Financial Measures" below.
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
202,070 |
91.0 |
% |
176,674 |
83.9 |
% |
199,973 |
88.8 |
% |
173,700 |
85.5 |
% | |||||||||||||||
Medium |
— |
— |
% |
3,429 |
1.6 |
% |
— |
— |
% |
2,471 |
1.2 |
% | |||||||||||||||
Heavy sour |
11,771 |
5.3 |
% |
22,433 |
10.7 |
% |
14,130 |
6.3 |
% |
17,174 |
8.5 |
% | |||||||||||||||
Total crude oil throughput |
213,841 |
96.3 |
% |
202,536 |
96.2 |
% |
214,103 |
95.1 |
% |
193,345 |
95.2 |
% | |||||||||||||||
All other feedstocks and blendstocks |
8,113 |
3.7 |
% |
7,952 |
3.8 |
% |
11,161 |
4.9 |
% |
9,827 |
4.8 |
% | |||||||||||||||
Total throughput |
221,954 |
100.0 |
% |
210,488 |
100.0 |
% |
225,264 |
100.0 |
% |
203,172 |
100.0 |
% | |||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
112,284 |
50.4 |
% |
108,330 |
51.3 |
% |
115,600 |
51.2 |
% |
107,105 |
52.7 |
% | |||||||||||||||
Distillate |
96,578 |
43.4 |
% |
86,622 |
41.0 |
% |
93,260 |
41.3 |
% |
82,309 |
40.5 |
% | |||||||||||||||
Other (excluding internally produced fuel) |
13,775 |
6.2 |
% |
16,280 |
7.7 |
% |
17,019 |
7.5 |
% |
13,900 |
6.8 |
% | |||||||||||||||
Total refining production (excluding internally produced fuel) |
222,637 |
100.0 |
% |
211,232 |
100.0 |
% |
225,879 |
100.0 |
% |
203,314 |
100.0 |
% | |||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.52 |
$ |
1.44 |
$ |
1.53 |
$ |
1.24 |
|||||||||||||||||||
Distillate |
1.51 |
1.37 |
1.54 |
1.22 |
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
48.15 |
$ |
45.64 |
$ |
49.95 |
$ |
39.78 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
1.06 |
0.83 |
1.24 |
0.49 |
|||||||||||
WTI less WCS (heavy sour) |
10.00 |
12.92 |
11.88 |
13.26 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
18.07 |
19.13 |
16.39 |
17.53 |
|||||||||||
Heating Oil |
15.11 |
12.82 |
15.32 |
12.37 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
16.59 |
15.98 |
15.85 |
14.95 |
|||||||||||
PADD II Group 3 Basis: |
|||||||||||||||
Gasoline |
(3.95) |
(5.49) |
(2.96) |
(5.68) |
|||||||||||
Ultra Low Sulfur Diesel |
(0.62) |
(1.18) |
(1.10) |
(1.10) |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
14.12 |
13.64 |
13.42 |
11.85 |
|||||||||||
Ultra Low Sulfur Diesel |
14.49 |
11.63 |
14.23 |
11.27 |
|||||||||||
PADD II Group 3 2-1-1 |
14.30 |
12.64 |
13.82 |
11.56 |
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
859.8 |
$ |
778.0 |
$ |
1,811.1 |
$ |
1,306.0 |
|||||||
Cost of materials and other |
773.5 |
630.7 |
1,581.9 |
1,093.4 |
|||||||||||
Direct operating expenses(1) |
47.5 |
46.1 |
98.2 |
93.8 |
|||||||||||
Major scheduled turnaround expenses |
— |
2.1 |
— |
31.5 |
|||||||||||
Depreciation and amortization |
17.4 |
16.7 |
36.4 |
33.5 |
|||||||||||
Gross profit |
21.4 |
82.4 |
94.6 |
53.8 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
47.5 |
46.1 |
98.2 |
93.8 |
|||||||||||
Major scheduled turnaround expenses |
— |
2.1 |
— |
31.5 |
|||||||||||
Depreciation and amortization |
17.4 |
16.7 |
36.4 |
33.5 |
|||||||||||
Refining margin* |
86.3 |
147.3 |
229.2 |
212.6 |
|||||||||||
FIFO impact, (favorable) unfavorable |
10.1 |
(30.2) |
11.6 |
(26.4) |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
96.4 |
$ |
117.1 |
$ |
240.8 |
$ |
186.2 |
|||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
1.76 |
$ |
7.11 |
$ |
3.95 |
$ |
2.53 |
|||||||
Refining margin* |
7.09 |
12.71 |
9.57 |
9.99 |
|||||||||||
FIFO impact, (favorable) unfavorable |
0.83 |
(2.62) |
0.49 |
(1.24) |
|||||||||||
Refining margin adjusted for FIFO impact* |
7.92 |
10.09 |
10.06 |
8.75 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
3.90 |
4.16 |
4.10 |
5.89 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
3.90 |
3.98 |
4.10 |
4.41 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
3.61 |
3.84 |
3.74 |
5.28 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
3.61 |
$ |
3.67 |
$ |
3.74 |
$ |
3.95 |
|||||||
Barrels sold (barrels per day) |
144,479 |
138,021 |
145,014 |
130,429 |
* See "Use of Non-GAAP Financial Measures" below.
(1) Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
122,048 |
87.3 |
% |
101,548 |
76.2 |
% |
118,167 |
84.0 |
% |
97,242 |
78.1 |
% | |||||||||||
Medium |
— |
— |
% |
3,429 |
2.6 |
% |
— |
— |
% |
2,471 |
2.0 |
% | |||||||||||
Heavy sour |
11,771 |
8.4 |
% |
22,433 |
16.8 |
% |
14,130 |
10.0 |
% |
17,174 |
13.8 |
% | |||||||||||
Total crude oil throughput |
133,819 |
95.7 |
% |
127,410 |
95.6 |
% |
132,297 |
94.0 |
% |
116,887 |
93.9 |
% | |||||||||||
All other feedstocks and blendstocks |
6,077 |
4.3 |
% |
5,844 |
4.4 |
% |
8,482 |
6.0 |
% |
7,594 |
6.1 |
% | |||||||||||
Total throughput |
139,896 |
100.0 |
% |
133,254 |
100.0 |
% |
140,779 |
100.0 |
% |
124,481 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
70,032 |
49.3 |
% |
67,819 |
49.9 |
% |
72,271 |
50.5 |
% |
65,927 |
52.2 |
% | |||||||||||
Distillate |
59,703 |
42.1 |
% |
57,549 |
42.4 |
% |
59,573 |
41.6 |
% |
52,348 |
41.4 |
% | |||||||||||
Other (excluding internally produced fuel) |
12,146 |
8.6 |
% |
10,491 |
7.7 |
% |
11,246 |
7.9 |
% |
8,130 |
6.4 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
141,881 |
100.0 |
% |
135,859 |
100.0 |
% |
143,090 |
100.0 |
% |
126,405 |
100.0 |
% |
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
477.3 |
$ |
385.3 |
$ |
948.4 |
$ |
690.1 |
|||||||
Cost of materials and other |
434.6 |
311.3 |
827.7 |
570.7 |
|||||||||||
Direct operating expenses(1) |
36.0 |
35.8 |
74.6 |
76.4 |
|||||||||||
Major scheduled turnaround expenses |
2.8 |
— |
15.7 |
— |
|||||||||||
Depreciation and amortization |
12.8 |
12.6 |
25.6 |
25.2 |
|||||||||||
Gross profit (loss) |
(8.9) |
25.6 |
4.8 |
17.8 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
36.0 |
35.8 |
74.6 |
76.4 |
|||||||||||
Major scheduled turnaround expenses |
2.8 |
— |
15.7 |
— |
|||||||||||
Depreciation and amortization |
12.8 |
12.6 |
25.6 |
25.2 |
|||||||||||
Refining margin* |
42.7 |
74.0 |
120.7 |
119.4 |
|||||||||||
FIFO impact, (favorable) unfavorable |
5.2 |
(15.9) |
4.1 |
(11.0) |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
47.9 |
$ |
58.1 |
$ |
124.8 |
$ |
108.4 |
|||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit (loss) |
$ |
(1.23) |
$ |
3.74 |
$ |
0.33 |
$ |
1.27 |
|||||||
Refining margin* |
5.87 |
10.83 |
8.15 |
8.58 |
|||||||||||
FIFO impact, (favorable) unfavorable |
0.72 |
(2.32) |
0.28 |
(0.79) |
|||||||||||
Refining margin adjusted for FIFO impact* |
6.59 |
8.51 |
8.43 |
7.79 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
5.33 |
5.24 |
6.10 |
5.49 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.95 |
5.24 |
5.04 |
5.49 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.97 |
5.22 |
5.91 |
5.44 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.61 |
$ |
5.22 |
$ |
4.88 |
$ |
5.44 |
|||||||
Barrels sold (barrels per day) |
85,866 |
75,347 |
84,425 |
77,239 |
* See "Use of Non-GAAP Financial Measures" below.
(1) Direct operating expenses for the three and six months ended June 30, 2017 and 2016 are shown exclusive of depreciation and amortization and major scheduled turnaround expenses, which amounts are presented separately below direct operating expenses.
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
80,022 |
97.5 |
% |
75,126 |
97.3 |
% |
81,806 |
96.8 |
% |
76,458 |
97.2 |
% | |||||||||||
Medium |
— |
— |
% |
— |
— |
% |
— |
— |
% |
— |
— |
% | |||||||||||
Heavy sour |
— |
— |
% |
— |
— |
% |
— |
— |
% |
— |
— |
% | |||||||||||
Total crude oil throughput |
80,022 |
97.5 |
% |
75,126 |
97.3 |
% |
81,806 |
96.8 |
% |
76,458 |
97.2 |
% | |||||||||||
All other feedstocks and blendstocks |
2,036 |
2.5 |
% |
2,108 |
2.7 |
% |
2,679 |
3.2 |
% |
2,233 |
2.8 |
% | |||||||||||
Total throughput |
82,058 |
100.0 |
% |
77,234 |
100.0 |
% |
84,485 |
100.0 |
% |
78,691 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
42,252 |
52.3 |
% |
40,511 |
53.7 |
% |
43,329 |
52.3 |
% |
41,178 |
53.5 |
% | |||||||||||
Distillate |
36,875 |
45.7 |
% |
29,073 |
38.6 |
% |
33,687 |
40.7 |
% |
29,961 |
39.0 |
% | |||||||||||
Other (excluding internally produced fuel) |
1,629 |
2.0 |
% |
5,789 |
7.7 |
% |
5,773 |
7.0 |
% |
5,770 |
7.5 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
80,756 |
100.0 |
% |
75,373 |
100.0 |
% |
82,789 |
100.0 |
% |
76,909 |
100.0 |
% |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of materials and other. Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of materials and other) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of materials and other adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
The calculation of refining margin and refining margin adjusted for FIFO impact (each a non-GAAP financial measure), including a reconciliation to the most directly comparable GAAP financial measure for the three and six months ended June 30, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Net sales |
$ |
1,338.2 |
$ |
1,164.4 |
$ |
2,761.7 |
$ |
1,998.4 |
|||||||
Cost of materials and other |
1,208.0 |
941.9 |
2,409.3 |
1,664.2 |
|||||||||||
Direct operating expenses (exclusive of depreciation and amortization and major scheduled turnaround expenses as reflected below) |
83.5 |
81.9 |
172.7 |
170.2 |
|||||||||||
Major scheduled turnaround expenses |
2.8 |
2.1 |
15.7 |
31.5 |
|||||||||||
Depreciation and amortization |
31.7 |
30.9 |
65.0 |
61.8 |
|||||||||||
Gross profit |
12.2 |
107.6 |
99.0 |
70.7 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses (exclusive of depreciation and amortization and major scheduled turnaround expenses as reflected below) |
83.5 |
81.9 |
172.7 |
170.2 |
|||||||||||
Major scheduled turnaround expenses |
2.8 |
2.1 |
15.7 |
31.5 |
|||||||||||
Depreciation and amortization |
31.7 |
30.9 |
65.0 |
61.8 |
|||||||||||
Refining margin |
130.2 |
222.5 |
352.4 |
334.2 |
|||||||||||
FIFO impact, (favorable) unfavorable |
15.4 |
(46.2) |
15.7 |
(37.4) |
|||||||||||
Refining margin adjusted for FIFO impact |
$ |
145.6 |
$ |
176.3 |
$ |
368.1 |
$ |
296.8 |
The calculation of refining margin per crude oil throughput barrel and refining margin adjusted for FIFO impact per crude oil throughput barrel for the three and six months ended June 30, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||||||||
Three Months Ended |
Six Months Ended | ||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||
Total crude oil throughput barrels per day |
213,841 |
202,536 |
214,103 |
193,345 |
|||||||
Days in the period |
91 |
91 |
181 |
182 |
|||||||
Total crude oil throughput barrels |
19,459,531 |
18,430,776 |
38,752,643 |
35,188,790 |
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
130.2 |
$ |
222.5 |
$ |
352.4 |
$ |
334.2 |
|||||||
Divided by: crude oil throughput barrels |
19.5 |
18.4 |
38.8 |
35.2 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
6.69 |
$ |
12.07 |
$ |
9.10 |
$ |
9.50 |
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
145.6 |
$ |
176.3 |
$ |
368.1 |
$ |
296.8 |
|||||||
Divided by: crude oil throughput barrels |
19.5 |
18.4 |
38.8 |
35.2 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
7.48 |
$ |
9.56 |
$ |
9.51 |
$ |
8.44 |
Coffeyville Refinery |
|||||||||||
Three Months Ended |
Six Months Ended June 30, | ||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||
Total crude oil throughput barrels per day |
133,819 |
127,410 |
132,297 |
116,887 |
|||||||
Days in the period |
91 |
91 |
181 |
182 |
|||||||
Total crude oil throughput barrels |
12,177,529 |
11,594,310 |
23,945,757 |
21,273,434 |
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
86.3 |
$ |
147.3 |
$ |
229.2 |
$ |
212.6 |
|||||||
Divided by: crude oil throughput barrels |
12.2 |
11.6 |
23.9 |
21.3 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
7.09 |
$ |
12.71 |
$ |
9.57 |
$ |
9.99 |
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
96.4 |
$ |
117.1 |
$ |
240.8 |
$ |
186.2 |
|||||||
Divided by: crude oil throughput barrels |
12.2 |
11.6 |
23.9 |
21.3 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
7.92 |
$ |
10.09 |
$ |
10.06 |
$ |
8.75 |
Wynnewood Refinery |
|||||||||||
Three Months Ended |
Six Months Ended June 30, | ||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||
Total crude oil throughput barrels per day |
80,022 |
75,126 |
81,806 |
76,458 |
|||||||
Days in the period |
91 |
91 |
181 |
182 |
|||||||
Total crude oil throughput barrels |
7,282,002 |
6,836,466 |
14,806,886 |
13,915,356 |
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin |
$ |
42.7 |
$ |
74.0 |
$ |
120.7 |
$ |
119.4 |
|||||||
Divided by: crude oil throughput barrels |
7.3 |
6.8 |
14.8 |
13.9 |
|||||||||||
Refining margin per crude oil throughput barrel |
$ |
5.87 |
$ |
10.83 |
$ |
8.15 |
$ |
8.58 |
Three Months Ended |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining margin adjusted for FIFO impact |
$ |
47.9 |
$ |
58.1 |
$ |
124.8 |
$ |
108.4 |
|||||||
Divided by: crude oil throughput barrels |
7.3 |
6.8 |
14.8 |
13.9 |
|||||||||||
Refining margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
6.59 |
$ |
8.51 |
$ |
8.43 |
$ |
7.79 |
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, (favorable) unfavorable; (ii) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA); (iii) (gain) loss on derivatives, net and (iv) current period settlements on derivative contracts. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three and six months ended June 30, 2017 and 2016 is as follows:
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in millions) | |||||||||||||||
Net income (loss) |
$ |
(19.2) |
$ |
78.1 |
$ |
47.8 |
$ |
10.1 |
|||||||
Add: |
|||||||||||||||
Interest expense and other financing costs, net of interest income |
11.8 |
10.1 |
23.0 |
20.9 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
32.4 |
31.6 |
66.5 |
63.1 |
|||||||||||
EBITDA |
25.0 |
119.8 |
137.3 |
94.1 |
|||||||||||
Add: |
|||||||||||||||
FIFO impact, (favorable) unfavorable |
15.4 |
(46.2) |
15.7 |
(37.4) |
|||||||||||
Major scheduled turnaround expenses |
2.8 |
2.1 |
15.7 |
31.5 |
|||||||||||
(Gain) loss on derivatives, net |
— |
1.9 |
(12.2) |
3.1 |
|||||||||||
Current period settlements on derivative contracts(1) |
(0.1) |
7.1 |
1.1 |
28.5 |
|||||||||||
Adjusted EBITDA |
$ |
43.1 |
$ |
84.7 |
$ |
157.6 |
$ |
119.8 |
(1) |
Represents the portion of (gain) loss on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income (loss) or operating income (loss) as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Ended June 30, 2017 |
Six Months Ended June 30, 2017 | ||||||
(in millions, except per unit data) | |||||||
Adjusted EBITDA |
$ |
43.1 |
$ |
157.6 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(20.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(18.1) |
(53.1) |
|||||
Reserves for major scheduled turnaround expenses |
(15.0) |
(30.0) |
|||||
Reserves for future operating needs |
— |
(54.5) |
|||||
Available cash for distribution |
$ |
— |
$ |
— |
|||
Available cash for distribution, per common unit |
$ |
— |
$ |
— |
|||
Common units outstanding |
147.6 |
147.6 |
Q3 2017 Outlook. The table below summarizes our outlook for certain refining statistics for the third quarter of 2017. See "Forward-Looking Statements."
Q3 2017 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
180,000 |
200,000 |
|||
Total refining production (bpd) |
190,000 |
210,000 |
View original content:http://www.prnewswire.com/news-releases/cvr-refining-reports-2017-second-quarter-results-300495150.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas, July 13, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2017 second quarter results on Thursday, July 27, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on July 27 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/21800. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/21800. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13666025.
CVR Refining's 2017 second quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
View original content with multimedia:http://www.prnewswire.com/news-releases/cvr-refining-announces-2017-second-quarter-earnings-call-300487051.html
SOURCE CVR Refining, LP
SUGAR LAND, Texas, April 27, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced net income of $67.0 million on net sales of $1,423.5 million for the first quarter of 2017, compared to a net loss of $68.0 million on net sales of $834.0 million for the first quarter of 2016. Adjusted EBITDA, a non-GAAP financial measure, for the 2017 first quarter was $114.5 million compared to adjusted EBITDA of $35.1 million for the 2016 first quarter.
"CVR Refining's Coffeyville, Kansas, and Wynnewood, Oklahoma, refineries performed exceptionally well during the 2017 first quarter and exceeded the range of our outlook by posting a combined crude throughput of 214,369 barrels per day (bpd), a quarterly record for the company," said Jack Lipinski, chief executive officer.
"Another recent highlight was the successful completion of our pipeline project with Velocity Midstream Partners," Lipinski said. "The newly constructed crude oil pipeline, which commenced operations in mid-April, directly links the South Central Oklahoma Oil Province (SCOOP) play to CVR Refining's Wynnewood refinery, further enhancing our crude supply.
"The Renewable Fuel Standard continues to be a disaster searching for a solution," he continued. "The wild volatility in the market for Renewable Identification Numbers (RINs) during the first quarter once again proves that RINs are not fundamentally priced but are in fact manipulated. The cost to produce a D-6 ethanol RIN is currently between 6 cents and 10 cents, yet it trades 40 cents higher. This is the price manipulation in the market that must stop and CVR Refining supports the efforts of the many refiners and independent gas station dealers to reform this misguided regulation.
"As I have said many times before, RINs are an egregious tax on independent, merchant refiners and small fuel retailers," Lipinski concluded. "CVR Refining alone has incurred more than $670 million in RIN expenses since the beginning of the program. Not only has the Company incurred this expense, but our unitholders have experienced significant market cap losses. RINs are sucking the lifeblood out of the merchant refining industry. We hope and strongly believe that this pernicious RINs program will be changed in the near future. However, in the interest of prudent corporate fiscal management, CVR Refining will not distribute cash this quarter."
Consolidated Operations
First quarter 2017 throughputs of crude oil and all other feedstocks and blendstocks totaled 228,612 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 195,859 bpd for the same period in 2016.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $11.54 in the 2017 first quarter, compared to $7.19 during the same period in 2016. Direct operating expenses (exclusive of depreciation and amortization), including major scheduled turnaround expenses, per crude oil throughput barrel, for the 2017 first quarter were $5.29, compared to $7.02 in the first quarter of 2016.
Distributions
CVR Refining announced today that it will not make a cash distribution for the 2017 first quarter. CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, and other cash reserves deemed necessary or appropriate by the board of directors of its general partner.
First Quarter 2017 Earnings Conference Call
CVR Refining previously announced that it will host its first quarter 2017 Earnings Conference Call for analysts and investors on Thursday, April 27, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the Partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/20615. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/20615. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13659738.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Refining's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Refining's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate and invest in supporting logistics assets including approximately 340 miles of active owned and leased pipelines, a 65,000 bpcd pipeline owned and operated by a joint venture, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
CVR Refining, LP
Financial and Operational Data (all information in this release is unaudited other than the balance sheet data as of December 31, 2016).
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except per unit data) | |||||||
Statement of Operations Data: |
|||||||
Net sales |
$ |
1,423.5 |
$ |
834.0 |
|||
Operating costs and expenses: |
|||||||
Cost of materials and other |
1,201.3 |
722.3 |
|||||
Direct operating expenses(1)(2) |
102.1 |
117.7 |
|||||
Depreciation and amortization |
33.3 |
30.9 |
|||||
Cost of sales |
1,336.7 |
870.9 |
|||||
Selling, general and administrative expenses(1) |
20.0 |
18.5 |
|||||
Depreciation and amortization |
0.8 |
0.6 |
|||||
Operating income (loss) |
66.0 |
(56.0) |
|||||
Interest expense and other financing costs |
(11.2) |
(10.8) |
|||||
Interest income |
— |
— |
|||||
Gain (loss) on derivatives, net |
12.2 |
(1.2) |
|||||
Other income (expense), net |
— |
— |
|||||
Income (loss) before income tax expense |
67.0 |
(68.0) |
|||||
Income tax expense |
— |
— |
|||||
Net income (loss) |
$ |
67.0 |
$ |
(68.0) |
|||
Net income (loss) per common unit - basic and diluted |
$ |
0.45 |
$ |
(0.46) |
|||
Adjusted EBITDA* |
$ |
114.5 |
$ |
35.1 |
|||
Available cash for distribution* |
$ |
— |
$ |
— |
|||
Weighted average, number of common units outstanding: |
|||||||
Basic and diluted |
147.6 |
147.6 |
______________________________
* See "Use of Non-GAAP Financial Measures" below. |
(1) |
Direct operating expenses and selling, general and administrative expenses for the three months ended March 31, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses. |
(2) |
Direct operating expenses includes $12.9 million and $29.4 million of major scheduled turnaround expenses during the three months ended March 31, 2017 and 2016, respectively. |
As of March 31, 2017 |
As of December 31, 2016 | ||||||
(audited) | |||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
408.8 |
$ |
314.1 |
|||
Working capital |
394.0 |
313.7 |
|||||
Total assets |
2,371.8 |
2,331.9 |
|||||
Total debt, including current portion |
541.4 |
541.5 |
|||||
Total partners' capital |
1,363.7 |
1,296.7 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions) | |||||||
Cash Flow Data: |
|||||||
Net cash flow provided by (used in): |
|||||||
Operating activities |
$ |
116.1 |
$ |
3.0 |
|||
Investing activities |
(21.0) |
(44.0) |
|||||
Financing activities |
(0.4) |
(0.4) |
|||||
Net cash flow |
$ |
94.7 |
$ |
(41.4) |
|||
Capital expenditures for property, plant and equipment: |
|||||||
Maintenance capital expenditures |
$ |
17.5 |
$ |
25.3 |
|||
Growth capital expenditures |
2.1 |
18.7 |
|||||
Total capital expenditures |
$ |
19.6 |
$ |
44.0 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
Key Operating Statistics: |
|||||||
Per crude oil throughput barrel: |
|||||||
Gross profit (loss) |
$ |
4.50 |
$ |
(2.20) |
|||
Refining margin* |
11.52 |
6.67 |
|||||
FIFO impact, unfavorable |
0.02 |
0.52 |
|||||
Refining margin adjusted for FIFO impact* |
11.54 |
7.19 |
|||||
Direct operating expenses and major scheduled turnaround expenses |
5.29 |
7.02 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.63 |
5.27 |
|||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.97 |
6.40 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.34 |
$ |
4.80 |
|||
Barrels sold (barrels per day) |
228,522 |
201,970 |
______________________________
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended March 31, | |||||||||||||
2017 |
2016 | ||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||
Throughput: |
|||||||||||||
Sweet |
197,853 |
86.6 |
% |
170,728 |
87.2 |
% | |||||||
Medium |
— |
— |
% |
1,513 |
0.8 |
% | |||||||
Heavy sour |
16,516 |
7.2 |
% |
11,914 |
6.0 |
% | |||||||
Total crude oil throughput |
214,369 |
93.8 |
% |
184,155 |
94.0 |
% | |||||||
All other feedstocks and blendstocks |
14,243 |
6.2 |
% |
11,704 |
6.0 |
% | |||||||
Total throughput |
228,612 |
100.0 |
% |
195,859 |
100.0 |
% | |||||||
Production: |
|||||||||||||
Gasoline |
118,955 |
51.9 |
% |
105,878 |
54.2 |
% | |||||||
Distillate |
89,907 |
39.2 |
% |
77,996 |
39.9 |
% | |||||||
Other (excluding internally produced fuel) |
20,298 |
8.9 |
% |
11,519 |
5.9 |
% | |||||||
Total refining production (excluding internally produced fuel) |
229,160 |
100.0 |
% |
195,393 |
100.0 |
% | |||||||
Product price (dollars per gallon): |
|||||||||||||
Gasoline |
$ |
1.54 |
$ |
1.04 |
|||||||||
Distillate |
1.58 |
1.05 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
Market Indicators (dollars per barrel): |
|||||||
West Texas Intermediate (WTI) NYMEX |
$ |
51.78 |
$ |
33.63 |
|||
Crude Oil Differentials: |
|||||||
WTI less WTS (light/medium sour) |
1.42 |
0.13 |
|||||
WTI less WCS (heavy sour) |
13.77 |
13.62 |
|||||
NYMEX Crack Spreads: |
|||||||
Gasoline |
14.68 |
15.84 |
|||||
Heating Oil |
15.54 |
11.91 |
|||||
NYMEX 2-1-1 Crack Spread |
15.11 |
13.88 |
|||||
PADD II Group 3 Basis: |
|||||||
Gasoline |
(1.96) |
(5.88) |
|||||
Ultra Low Sulfur Diesel |
(1.58) |
(1.01) |
|||||
PADD II Group 3 Product Crack Spread: |
|||||||
Gasoline |
12.71 |
9.97 |
|||||
Ultra Low Sulfur Diesel |
13.96 |
10.90 |
|||||
PADD II Group 3 2-1-1 |
13.34 |
10.43 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except operating statistics) | |||||||
Coffeyville Refinery Financial Results: |
|||||||
Net sales |
$ |
951.3 |
$ |
528.0 |
|||
Cost of materials and other |
808.4 |
462.7 |
|||||
Direct operating expenses(1) |
50.7 |
47.6 |
|||||
Major scheduled turnaround expenses |
— |
29.4 |
|||||
Depreciation and amortization |
19.1 |
16.8 |
|||||
Gross profit (loss) |
73.1 |
(28.5) |
|||||
Add: |
|||||||
Direct operating expenses(1) |
50.7 |
47.6 |
|||||
Major scheduled turnaround expenses |
— |
29.4 |
|||||
Depreciation and amortization |
19.1 |
16.8 |
|||||
Refining margin* |
142.9 |
65.3 |
|||||
FIFO impact, unfavorable |
1.5 |
3.9 |
|||||
Refining margin adjusted for FIFO impact* |
$ |
144.4 |
$ |
69.2 |
|||
Coffeyville Refinery Key Operating Statistics: |
|||||||
Per crude oil throughput barrel: |
|||||||
Gross profit (loss) |
$ |
6.22 |
$ |
(2.94) |
|||
Refining margin* |
12.15 |
6.75 |
|||||
FIFO impact, unfavorable |
0.13 |
0.40 |
|||||
Refining margin adjusted for FIFO impact* |
12.28 |
7.15 |
|||||
Direct operating expenses and major scheduled turnaround expenses |
4.31 |
7.96 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.31 |
4.92 |
|||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
3.87 |
6.89 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
3.87 |
$ |
4.26 |
|||
Barrels sold (barrels per day) |
145,555 |
122,838 |
______________________________
* See "Use of Non-GAAP Financial Measures" below. |
(1) |
Direct operating expenses for the three months ended March 31, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses. |
Three Months Ended March 31, | |||||||||||||||||
2017 |
2016 | ||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||
Throughput: |
|||||||||||||||||
Sweet |
114,243 |
80.6 |
% |
92,938 |
80.3 |
% | |||||||||||
Medium |
— |
— |
% |
1,513 |
1.3 |
% | |||||||||||
Heavy sour |
16,516 |
11.7 |
% |
11,914 |
10.3 |
% | |||||||||||
Total crude oil throughput |
130,759 |
92.3 |
% |
106,365 |
91.9 |
% | |||||||||||
All other feedstocks and blendstocks |
10,915 |
7.7 |
% |
9,344 |
8.1 |
% | |||||||||||
Total throughput |
141,674 |
100.0 |
% |
115,709 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||
Gasoline |
74,538 |
51.6 |
% |
64,033 |
54.8 |
% | |||||||||||
Distillate |
59,444 |
41.2 |
% |
47,147 |
40.3 |
% | |||||||||||
Other (excluding internally produced fuel) |
10,335 |
7.2 |
% |
5,768 |
4.9 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
144,317 |
100.0 |
% |
116,948 |
100.0 |
% | |||||||||||
Three Months Ended March 31, | |||||||||||||||||
2017 |
2016 | ||||||||||||||||
(in millions, except operating statistics) | |||||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||||
Net sales |
$ |
471.1 |
$ |
304.8 |
|||||||||||||
Cost of materials and other |
393.1 |
259.4 |
|||||||||||||||
Direct operating expenses(1) |
38.6 |
40.6 |
|||||||||||||||
Major scheduled turnaround expenses |
12.9 |
— |
|||||||||||||||
Depreciation and amortization |
12.8 |
12.6 |
|||||||||||||||
Gross profit (loss) |
13.7 |
(7.8) |
|||||||||||||||
Add: |
|||||||||||||||||
Direct operating expenses(1) |
38.6 |
40.6 |
|||||||||||||||
Major scheduled turnaround expenses |
12.9 |
— |
|||||||||||||||
Depreciation and amortization |
12.8 |
12.6 |
|||||||||||||||
Refining margin* |
78.0 |
45.4 |
|||||||||||||||
FIFO impact, (favorable) unfavorable |
(1.1) |
4.8 |
|||||||||||||||
Refining margin adjusted for FIFO impact* |
$ |
76.9 |
$ |
50.2 |
|||||||||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||||
Gross profit (loss) |
$ |
1.83 |
$ |
(1.10) |
|||||||||||||
Refining margin* |
10.36 |
6.41 |
|||||||||||||||
FIFO impact, (favorable) unfavorable |
(0.15) |
0.68 |
|||||||||||||||
Refining margin adjusted for FIFO impact* |
10.21 |
7.09 |
|||||||||||||||
Direct operating expenses and major scheduled turnaround expenses |
6.83 |
5.74 |
|||||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.12 |
5.74 |
|||||||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
6.89 |
5.64 |
|||||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
5.16 |
$ |
5.64 |
|||||||||||||
Barrels sold (barrels per day) |
82,967 |
79,132 |
|||||||||||||||
________________________
* See "Use of Non-GAAP Financial Measures" below. |
(1) |
Direct operating expenses for the three months ended March 31, 2017 and 2016 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses. |
Three Months Ended March 31, | |||||||||||
2017 |
2016 | ||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||
Throughput: |
|||||||||||
Sweet |
83,610 |
96.2 |
% |
77,790 |
97.1 |
% | |||||
Medium |
— |
— |
% |
— |
— |
% | |||||
Heavy sour |
— |
— |
% |
— |
— |
% | |||||
Total crude oil throughput |
83,610 |
96.2 |
% |
77,790 |
97.1 |
% | |||||
All other feedstocks and blendstocks |
3,328 |
3.8 |
% |
2,360 |
2.9 |
% | |||||
Total throughput |
86,938 |
100.0 |
% |
80,150 |
100.0 |
% | |||||
Production: |
|||||||||||
Gasoline |
44,417 |
52.4 |
% |
41,845 |
53.4 |
% | |||||
Distillate |
30,463 |
35.9 |
% |
30,849 |
39.3 |
% | |||||
Other (excluding internally produced fuel) |
9,963 |
11.7 |
% |
5,751 |
7.3 |
% | |||||
Total refining production (excluding internally produced fuel) |
84,843 |
100.0 |
% |
78,445 |
100.0 |
% |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of materials and other. Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of materials and other) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of materials and other adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
The calculation of refining margin and refining margin adjusted for FIFO impact (each a non-GAAP financial measure), including a reconciliation to the most directly comparable GAAP financial measure for the three months ended March 31, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||||
Three Months Ended | |||||||
2017 |
2016 | ||||||
(in millions) | |||||||
Net Sales |
$ |
1,423.5 |
$ |
834.0 |
|||
Cost of materials and other |
1,201.3 |
722.3 |
|||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
89.2 |
88.3 |
|||||
Major schedule turnaround expenses |
12.9 |
29.4 |
|||||
Depreciation and amortization |
33.3 |
30.9 |
|||||
Gross profit (loss) |
86.8 |
(36.9) |
|||||
Add: |
|||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
89.2 |
88.3 |
|||||
Major schedule turnaround expenses |
12.9 |
29.4 |
|||||
Depreciation and amortization |
33.3 |
30.9 |
|||||
Refining Margin |
222.2 |
111.7 |
|||||
FIFO impact, unfavorable |
0.3 |
8.8 |
|||||
Refining Margin adjusted for FIFO impact |
$ |
222.5 |
$ |
120.5 |
The calculation of refining margin per crude oil throughput barrel and refining margin adjusted for FIFO impact per crude oil throughput barrel for the three months ended March 31, 2017 and 2016 is as follows:
Consolidated Operating Data |
|||||
Three Months Ended March 31, | |||||
2017 |
2016 | ||||
Total crude oil throughput barrels per day |
214,369 |
184,155 |
|||
Days in the period |
90 |
91 |
|||
Total crude oil throughput barrels |
19,293,210 |
16,758,105 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except for $ per barrel data) | |||||||
Refining Margin |
$ |
222.2 |
$ |
111.7 |
|||
Divided by: crude oil throughput barrels |
19.3 |
16.8 |
|||||
Refining Margin per crude oil throughput barrel |
$ |
11.52 |
$ |
6.67 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except for $ per barrel data) | |||||||
Refining Margin adjusted for FIFO impact |
$ |
222.5 |
$ |
120.5 |
|||
Divided by: crude oil throughput barrels |
19.3 |
16.8 |
|||||
Refining Margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
11.54 |
$ |
7.19 |
Coffeyville Refinery |
|||||
Three Months Ended March 31, | |||||
2017 |
2016 | ||||
Total crude oil throughput barrels per day |
130,759 |
106,365 |
|||
Days in the period |
90 |
91 |
|||
Total crude oil throughput barrels |
11,768,310 |
9,679,215 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except for $ per barrel data) | |||||||
Refining Margin |
$ |
142.9 |
$ |
65.3 |
|||
Divided by: crude oil throughput barrels |
11.8 |
9.7 |
|||||
Refining Margin per crude oil throughput barrel |
$ |
12.15 |
$ |
6.75 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except for $ per barrel data) | |||||||
Refining Margin adjusted for FIFO impact |
$ |
144.4 |
$ |
69.2 |
|||
Divided by: crude oil throughput barrels |
11.8 |
9.7 |
|||||
Refining Margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
12.28 |
$ |
7.15 |
Wynnewood Refinery |
|||||
Three Months Ended March 31, | |||||
2017 |
2016 | ||||
Total crude oil throughput barrels per day |
83,610 |
77,790 |
|||
Days in the period |
90 |
91 |
|||
Total crude oil throughput barrels |
7,524,900 |
7,078,890 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except for $ per barrel data) | |||||||
Refining Margin |
$ |
78.0 |
$ |
45.4 |
|||
Divided by: crude oil throughput barrels |
7.5 |
7.1 |
|||||
Refining Margin per crude oil throughput barrel |
$ |
10.36 |
$ |
6.41 |
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions, except for $ per barrel data) | |||||||
Refining Margin adjusted for FIFO impact |
$ |
76.9 |
$ |
50.2 |
|||
Divided by: crude oil throughput barrels |
7.5 |
7.1 |
|||||
Refining Margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
10.21 |
$ |
7.09 |
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, (favorable) unfavorable; (ii) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA); (iii) (gain) loss on derivatives, net and (iv) current period settlements on derivative contracts. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three months ended March 31, 2017 and 2016 is as follows:
Three Months Ended March 31, | |||||||
2017 |
2016 | ||||||
(in millions) | |||||||
Net income (loss) |
$ |
67.0 |
$ |
(68.0) |
|||
Add: |
|||||||
Interest expense and other financing costs, net of interest income |
11.2 |
10.8 |
|||||
Income tax expense |
— |
— |
|||||
Depreciation and amortization |
34.1 |
31.5 |
|||||
EBITDA |
112.3 |
(25.7) |
|||||
Add: |
|||||||
FIFO impact, unfavorable |
0.3 |
8.8 |
|||||
Major scheduled turnaround expenses |
12.9 |
29.4 |
|||||
(Gain) loss on derivatives, net |
(12.2) |
1.2 |
|||||
Current period settlements on derivative contracts(1) |
1.2 |
21.4 |
|||||
Adjusted EBITDA |
$ |
114.5 |
$ |
35.1 |
_________________________
(1) |
Represents the portion of (gain) loss on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income (loss) or operating income (loss) as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Ended March 31, 2017 | |||
(in millions, except per unit data) | |||
Adjusted EBITDA |
$ |
114.5 |
|
Adjustments: |
|||
Less: |
|||
Cash needs for debt service |
(10.0) |
||
Reserves for environmental and maintenance capital expenditures |
(35.0) |
||
Reserves for major scheduled turnaround expenses |
(15.0) |
||
Reserves for future operating needs |
(54.5) |
||
Available cash for distribution |
$ |
— |
|
Available cash for distribution, per common unit |
$ |
— |
|
Common units outstanding |
147.6 |
Q2 2017 Outlook. The table below summarizes our outlook for certain refining statistics for the second quarter of 2017. See "Forward-Looking Statements."
Q2 2017 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
200,000 |
210,000 |
|||
Total refining production (bpd) |
210,000 |
220,000 |
SOURCE CVR Refining, LP
SUGAR LAND, Texas, April 13, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2017 first quarter results on Thursday, April 27, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on April 27 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/20615. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/20615. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13659738.
CVR Refining's 2017 first quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 21, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it has filed its annual report on Form 10-K for the fiscal year ended Dec. 31, 2016, with the Securities and Exchange Commission.
The annual report on Form 10-K is available free of charge through the Investor Relations link on the CVR Refining website at www.cvrrefining.com. Unitholders may also receive a hard copy of the annual report on Form 10-K, which includes the audited financial statements, free of charge upon request. Please send requests to the following address:
CVR Refining, LP
Attn: Investor Services
2277 Plaza Drive, Suite 500
Sugar Land, Texas 77479
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 16, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced net income of $15.3 million on net sales of $4,431.3 million for full year 2016, compared to net income of $291.2 million on net sales of $5,161.9 million for full year 2015. Adjusted EBITDA, a non-GAAP financial measure, for full year 2016 was $222.8 million, compared to adjusted EBITDA of $602.0 million for the previous year.
For the fourth quarter of 2016, the company reported a net loss of $10.7 million on net sales of $1,269.4 million, compared to a net loss of $122.2 million on net sales of $948.3 million for the fourth quarter of 2015. Adjusted EBITDA, a non-GAAP financial measure, for the 2016 fourth quarter was $27.7 million compared to adjusted EBITDA of $16.4 million for the 2015 fourth quarter.
"CVR Refining had strong 2016 fourth quarter operational performance," said Jack Lipinski, chief executive officer. "The Coffeyville and Wynnewood refineries posted a combined crude throughput of 207,422 barrels per day (bpd), which exceeded the range of our outlook.
"As expected, refining margins for the fourth quarter were seasonally weak," he said. "Renewable Identification Number (RIN) expenses under the broken Renewable Fuel Standard (RFS) program remained high in the fourth quarter and continue to be a serious concern for merchant refiners. As we have said many times, the RFS point of obligation must be expanded to include all blenders in order for the program to work as Congress originally intended.
"Moving forward, we are cautiously optimistic that the new administration will have a pragmatic approach to how it administers the RFS program," Lipinski said. "Certainly, the drop in ethanol RIN prices from 2016's high of $1.09 on Dec. 1 to yesterday's settlement just under 49 cents proves our supposition that the RIN market is contrived."
Consolidated Operations
Fourth quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks totaled 223,266 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 172,364 bpd for the same period in 2015.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $7.32 in the 2016 fourth quarter, compared to $8.96 during the same period in 2015. Direct operating expenses (exclusive of depreciation and amortization), excluding major scheduled turnaround expenses, per crude oil throughput barrel, for the 2016 fourth quarter were $4.96, compared to $7.04 in the fourth quarter of 2015.
Distributions
CVR Refining will not pay a cash distribution for the 2016 fourth quarter. CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, RINs' expense and cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Fourth Quarter 2016 Earnings Conference Call
CVR Refining previously announced that it will host its fourth quarter 2016 Earnings Conference Call for analysts and investors on Thursday, Feb. 16, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the Partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/19480. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/19480. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13653930.
This release serves as a qualified notice to nominees and brokers as provided for under Treasury Regulation Section 1.1446-4(b). Please note that 100 percent of CVR Refining's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, CVR Refining's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Brandee Stephens
CVR Refining, LP
(281) 207-3516
MediaRelations@CVRRefining.com
CVR Refining, LP
Financial and Operational Data (all information in this release is unaudited other than the statement of operations and cash flow data for the year ended December 31, 2015 and the balance sheet data as of December 31, 2015).
Three Months December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except per unit data) | |||||||||||||||
Statement of Operations Data: |
|||||||||||||||
Net sales |
$ |
1,269.4 |
$ |
948.3 |
$ |
4,431.3 |
$ |
5,161.9 |
|||||||
Operating costs and expenses: |
|||||||||||||||
Cost of materials and other |
1,107.5 |
842.8 |
3,759.2 |
4,143.6 |
|||||||||||
Direct operating expenses(1)(2) |
94.7 |
188.7 |
393.4 |
478.5 |
|||||||||||
Depreciation and amortization |
32.6 |
31.5 |
126.3 |
128.0 |
|||||||||||
Cost of sales |
1,234.8 |
1,063.0 |
4,278.9 |
4,750.1 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Selling, general and administrative expenses(1) |
18.5 |
20.2 |
71.9 |
75.2 |
|||||||||||
Depreciation and amortization |
0.8 |
0.6 |
2.7 |
2.2 |
|||||||||||
Operating income (loss) |
15.3 |
(135.5) |
77.8 |
361.7 |
|||||||||||
Interest expense and other financing costs |
(11.7) |
(10.5) |
(43.4) |
(42.6) |
|||||||||||
Interest income |
0.1 |
0.1 |
0.1 |
0.4 |
|||||||||||
Gain (loss) on derivatives, net |
(14.6) |
23.6 |
(19.4) |
(28.6) |
|||||||||||
Other income, net |
0.2 |
0.1 |
0.2 |
0.3 |
|||||||||||
Income (loss) before income tax expense |
(10.7) |
(122.2) |
15.3 |
291.2 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Net income (loss) |
$ |
(10.7) |
$ |
(122.2) |
$ |
15.3 |
$ |
291.2 |
|||||||
Net income (loss) per common unit - basic and diluted |
$ |
(0.07) |
$ |
(0.83) |
$ |
0.10 |
$ |
1.97 |
|||||||
Adjusted EBITDA* |
$ |
27.7 |
$ |
16.4 |
$ |
222.8 |
$ |
602.0 |
|||||||
Available cash for distribution* |
$ |
— |
$ |
(3.7) |
$ |
0.3 |
$ |
402.0 |
|||||||
Weighted average, number of common units outstanding: |
|||||||||||||||
Basic and diluted |
147.6 |
147.6 |
147.6 |
147.6 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses and selling, general and administrative expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses and selling, general and administrative expenses. |
(2) Direct operating expenses includes $0.0 million and $31.5 million of major scheduled turnaround expenses during the three months and year ended December 31, 2016, respectively. Direct operating expenses includes $84.9 million and $102.2 million of major scheduled turnaround expenses during the three months and year ended December 31, 2015. |
As of |
As of | ||||||
(audited) | |||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
314.1 |
$ |
187.3 |
|||
Working capital (1) |
313.7 |
297.5 |
|||||
Total assets (1) |
2,331.9 |
2,189.0 |
|||||
Total debt, including current portion (1) |
541.5 |
573.8 |
|||||
Total partners' capital |
1,296.7 |
1,281.4 |
|||||
(1) Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt. |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
81.4 |
$ |
(93.2) |
$ |
267.8 |
$ |
473.7 |
|||||||
Investing activities |
(21.3) |
(71.2) |
(107.9) |
(194.7) |
|||||||||||
Financing activities |
(31.9) |
(149.4) |
(33.1) |
(461.9) |
|||||||||||
Net cash flow |
$ |
28.2 |
$ |
(313.8) |
$ |
126.8 |
$ |
(182.9) |
|||||||
Capital expenditures for property, plant and equipment |
|||||||||||||||
Maintenance capital expenditures |
$ |
13.5 |
$ |
36.9 |
$ |
63.6 |
$ |
103.4 |
|||||||
Growth capital expenditures |
5.4 |
34.2 |
38.7 |
91.3 |
|||||||||||
Total capital expenditures |
$ |
18.9 |
$ |
71.1 |
$ |
102.3 |
$ |
194.7 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit (loss) |
$ |
1.81 |
$ |
(7.80) |
$ |
2.10 |
$ |
6.23 |
|||||||
Gross profit (loss) excluding flood insurance recovery* |
1.81 |
(7.80) |
2.10 |
5.84 |
|||||||||||
Refining margin* |
8.49 |
7.16 |
9.27 |
14.45 |
|||||||||||
FIFO impact (favorable) unfavorable |
(1.17) |
1.80 |
(0.72) |
0.86 |
|||||||||||
Refining margin adjusted for FIFO impact* |
7.32 |
8.96 |
8.55 |
15.31 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.96 |
12.81 |
5.43 |
6.79 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.96 |
7.04 |
4.99 |
5.34 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.64 |
12.34 |
5.08 |
6.40 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.64 |
$ |
6.79 |
$ |
4.67 |
$ |
5.04 |
|||||||
Barrels sold (barrels per day) |
221,921 |
166,168 |
211,643 |
204,708 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
185,154 |
82.9 |
% |
151,215 |
87.7 |
% |
177,256 |
84.8 |
% |
176,097 |
86.0 |
% | |||||||||||||||
Medium |
3,160 |
1.4 |
% |
209 |
0.1 |
% |
2,525 |
1.2 |
% |
2,460 |
1.2 |
% | |||||||||||||||
Heavy sour |
19,108 |
8.6 |
% |
8,715 |
5.1 |
% |
18,261 |
8.7 |
% |
14,520 |
7.1 |
% | |||||||||||||||
Total crude oil throughput |
207,422 |
92.9 |
% |
160,139 |
92.9 |
% |
198,042 |
94.7 |
% |
193,077 |
94.3 |
% | |||||||||||||||
All other feedstocks and blendstocks |
15,844 |
7.1 |
% |
12,225 |
7.1 |
% |
11,077 |
5.3 |
% |
11,672 |
5.7 |
% | |||||||||||||||
Total throughput |
223,266 |
100.0 |
% |
172,364 |
100.0 |
% |
209,119 |
100.0 |
% |
204,749 |
100.0 |
% | |||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
114,682 |
51.1 |
% |
80,111 |
46.3 |
% |
108,762 |
51.9 |
% |
99,961 |
48.5 |
% | |||||||||||||||
Distillate |
91,021 |
40.5 |
% |
70,201 |
40.6 |
% |
85,092 |
40.6 |
% |
85,953 |
41.7 |
% | |||||||||||||||
Other (excluding internally produced fuel) |
18,782 |
8.4 |
% |
22,638 |
13.1 |
% |
15,751 |
7.5 |
% |
20,074 |
9.8 |
% | |||||||||||||||
Total refining production (excluding internally produced fuel) |
224,485 |
100.0 |
% |
172,950 |
100.0 |
% |
209,605 |
100.0 |
% |
205,988 |
100.0 |
% | |||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.42 |
$ |
1.32 |
$ |
1.34 |
$ |
1.61 |
|||||||||||||||||||
Distillate |
1.52 |
1.34 |
1.36 |
1.62 |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
49.29 |
$ |
42.16 |
$ |
43.47 |
$ |
48.76 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
0.92 |
0.35 |
0.85 |
(0.28) |
|||||||||||
WTI less WCS (heavy sour) |
15.04 |
14.45 |
13.95 |
13.20 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
12.96 |
12.79 |
15.42 |
19.89 |
|||||||||||
Heating Oil |
16.45 |
15.21 |
13.89 |
20.93 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
14.70 |
14.00 |
14.66 |
20.41 |
|||||||||||
PADD II Group 3 Product Basis: |
|||||||||||||||
Gasoline |
(3.70) |
0.26 |
(3.62) |
(2.12) |
|||||||||||
Ultra Low Sulfur Diesel |
(2.55) |
(0.44) |
(0.92) |
(2.02) |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
9.28 |
13.05 |
11.82 |
17.76 |
|||||||||||
Ultra Low Sulfur Diesel |
13.91 |
14.76 |
12.96 |
18.91 |
|||||||||||
PADD II Group 3 2-1-1 |
11.60 |
13.91 |
12.39 |
18.34 |
Three Months December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
854.7 |
$ |
522.6 |
$ |
2,948.9 |
$ |
3,220.6 |
|||||||
Cost of materials and other |
750.6 |
490.5 |
2,513.9 |
2,626.1 |
|||||||||||
Direct operating expenses(1) |
52.0 |
53.5 |
196.4 |
209.1 |
|||||||||||
Major scheduled turnaround expenses |
— |
84.9 |
31.5 |
102.2 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
18.4 |
17.5 |
69.7 |
72.1 |
|||||||||||
Gross profit (loss) |
33.7 |
(123.8) |
137.4 |
238.4 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
52.0 |
53.5 |
196.4 |
209.1 |
|||||||||||
Major scheduled turnaround expenses |
— |
84.9 |
31.5 |
102.2 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
18.4 |
17.5 |
69.7 |
72.1 |
|||||||||||
Refining Margin* |
104.1 |
32.1 |
435.0 |
594.5 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(15.4) |
17.4 |
(37.8) |
38.0 |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
88.7 |
$ |
49.5 |
$ |
397.2 |
$ |
632.5 |
|||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit (loss) |
$ |
2.76 |
$ |
(17.42) |
$ |
3.03 |
$ |
5.77 |
|||||||
Gross profit (loss) excluding flood insurance recovery* |
2.76 |
(17.42) |
3.03 |
5.11 |
|||||||||||
Refining margin* |
8.55 |
4.52 |
9.57 |
14.37 |
|||||||||||
FIFO impact (favorable) unfavorable |
(1.26) |
2.45 |
(0.83) |
0.92 |
|||||||||||
Refining margin adjusted for FIFO impact* |
7.29 |
6.97 |
8.74 |
15.29 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.27 |
19.48 |
5.02 |
7.53 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.27 |
7.53 |
4.32 |
5.06 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
3.84 |
18.46 |
4.54 |
6.92 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
3.84 |
$ |
7.14 |
$ |
3.92 |
$ |
4.65 |
|||||||
Barrels sold (barrels per day) |
146,930 |
81,484 |
137,047 |
123,279 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses. |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
113,243 |
78.4 |
% |
68,452 |
80.7 |
% |
104,679 |
78.9 |
% |
96,727 |
79.5 |
% | |||||||||||
Medium |
— |
— |
% |
57 |
0.1 |
% |
1,229 |
0.9 |
% |
2,058 |
1.7 |
% | |||||||||||
Heavy sour |
19,108 |
13.2 |
% |
8,715 |
10.3 |
% |
18,261 |
13.8 |
% |
14,520 |
11.9 |
% | |||||||||||
Total crude oil throughput |
132,351 |
91.6 |
% |
77,224 |
91.1 |
% |
124,169 |
93.6 |
% |
113,305 |
93.1 |
% | |||||||||||
All other feedstocks and blendstocks |
12,206 |
8.4 |
% |
7,540 |
8.9 |
% |
8,453 |
6.4 |
% |
8,400 |
6.9 |
% | |||||||||||
Total throughput |
144,557 |
100.0 |
% |
84,764 |
100.0 |
% |
132,622 |
100.0 |
% |
121,705 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
75,273 |
51.1 |
% |
36,493 |
42.1 |
% |
69,303 |
51.4 |
% |
57,815 |
46.5 |
% | |||||||||||
Distillate |
60,550 |
41.1 |
% |
35,588 |
41.0 |
% |
55,790 |
41.4 |
% |
53,136 |
42.7 |
% | |||||||||||
Other (excluding internally produced fuel) |
11,446 |
7.8 |
% |
14,655 |
16.9 |
% |
9,756 |
7.2 |
% |
13,503 |
10.8 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
147,269 |
100.0 |
% |
86,736 |
100.0 |
% |
134,849 |
100.0 |
% |
124,454 |
100.0 |
% |
Three Months December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
413.6 |
$ |
424.6 |
$ |
1,478.0 |
$ |
1,936.9 |
|||||||
Cost of materials and other |
356.9 |
351.8 |
1,245.4 |
1,516.3 |
|||||||||||
Direct operating expenses(1) |
42.7 |
49.2 |
165.5 |
166.2 |
|||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
12.8 |
12.6 |
50.7 |
50.2 |
|||||||||||
Gross profit |
1.2 |
11.0 |
16.4 |
204.2 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses(1) |
42.7 |
49.2 |
165.5 |
166.2 |
|||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
12.8 |
12.6 |
50.7 |
50.2 |
|||||||||||
Refining Margin* |
56.7 |
72.8 |
232.6 |
420.6 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(7.0) |
9.2 |
(14.2) |
22.3 |
|||||||||||
Refining margin adjusted for FIFO impact* |
$ |
49.7 |
$ |
82.0 |
$ |
218.4 |
$ |
442.9 |
|||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Gross profit |
$ |
0.16 |
$ |
1.44 |
$ |
0.61 |
$ |
7.01 |
|||||||
Refining margin* |
8.20 |
9.54 |
8.60 |
14.44 |
|||||||||||
FIFO impact (favorable) unfavorable |
(1.01) |
1.20 |
(0.53) |
0.77 |
|||||||||||
Refining margin adjusted for FIFO impact* |
7.19 |
10.74 |
8.07 |
15.21 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
6.19 |
6.44 |
6.12 |
5.71 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
6.19 |
6.44 |
6.12 |
5.71 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
6.20 |
6.31 |
6.06 |
5.59 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
6.20 |
$ |
6.31 |
$ |
6.06 |
$ |
5.59 |
|||||||
Barrels sold (barrels per day) |
74,991 |
84,684 |
74,596 |
81,429 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses for the three months and years ended December 31, 2016 and 2015 are shown exclusive of depreciation and amortization, which amounts are presented separately below direct operating expenses. |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
71,911 |
91.4 |
% |
82,763 |
94.5 |
% |
72,577 |
94.9 |
% |
79,370 |
95.6 |
% | |||||||||||
Medium |
3,160 |
4.0 |
% |
152 |
0.2 |
% |
1,296 |
1.7 |
% |
402 |
0.5 |
% | |||||||||||
Heavy sour |
— |
— |
% |
— |
— |
% |
— |
— |
% |
— |
— |
% | |||||||||||
Total crude oil throughput |
75,071 |
95.4 |
% |
82,915 |
94.7 |
% |
73,873 |
96.6 |
% |
79,772 |
96.1 |
% | |||||||||||
All other feedstocks and blendstocks |
3,638 |
4.6 |
% |
4,685 |
5.3 |
% |
2,624 |
3.4 |
% |
3,272 |
3.9 |
% | |||||||||||
Total throughput |
78,709 |
100.0 |
% |
87,600 |
100.0 |
% |
76,497 |
100.0 |
% |
83,044 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
39,409 |
51.0 |
% |
43,618 |
50.6 |
% |
39,459 |
52.8 |
% |
42,146 |
51.7 |
% | |||||||||||
Distillate |
30,471 |
39.5 |
% |
34,613 |
40.1 |
% |
29,302 |
39.2 |
% |
32,817 |
40.2 |
% | |||||||||||
Other (excluding internally produced fuel) |
7,336 |
9.5 |
% |
7,983 |
9.3 |
% |
5,995 |
8.0 |
% |
6,571 |
8.1 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
77,216 |
100.0 |
% |
86,214 |
100.0 |
% |
74,756 |
100.0 |
% |
81,534 |
100.0 |
% |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of materials and other. Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of materials and other) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of materials and other adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of materials and other (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
The calculation of refining margin and refining margin adjusted for FIFO impact for the three months and years ended December 31, 2016 and 2015 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Net Sales |
$ |
1,269.4 |
$ |
948.3 |
$ |
4,431.3 |
$ |
5,161.9 |
|||||||
Cost of materials and other |
1,107.5 |
842.8 |
3,759.2 |
4,143.6 |
|||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
94.7 |
103.8 |
361.9 |
376.3 |
|||||||||||
Major schedule turnaround expenses |
— |
84.9 |
31.5 |
102.2 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
32.6 |
31.5 |
126.3 |
128.0 |
|||||||||||
Gross profit (loss) |
34.6 |
(114.7) |
152.4 |
439.1 |
|||||||||||
Add: |
|||||||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
94.7 |
103.8 |
361.9 |
376.3 |
|||||||||||
Major schedule turnaround expenses |
— |
84.9 |
31.5 |
102.2 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
32.6 |
31.5 |
126.3 |
128.0 |
|||||||||||
Refining Margin |
161.9 |
105.5 |
672.1 |
1,018.3 |
|||||||||||
FIFO impact, (favorable) unfavorable |
(22.4) |
26.6 |
(52.1) |
60.3 |
|||||||||||
Refining Margin adjusted for FIFO impact |
$ |
139.5 |
$ |
132.1 |
$ |
620.0 |
$ |
1,078.6 |
The calculation of refining margin per crude oil throughput barrel and refining margin adjusted for FIFO impact per crude oil throughput barrel for the three months and years ended December 31, 2016 and 2015 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Total crude oil throughput barrels per day |
207,422 |
160,139 |
198,042 |
193,077 |
|||||||||||
Days in the period |
92 |
92 |
366 |
365 |
|||||||||||
Total crude oil throughput barrels |
19,082,824 |
14,732,788 |
72,483,372 |
70,473,105 |
|||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining Margin |
$ |
161.9 |
$ |
105.5 |
$ |
672.1 |
$ |
1,018.3 |
|||||||
Divided by: crude oil throughput barrels |
19.1 |
14.7 |
72.5 |
70.5 |
|||||||||||
Refining Margin per crude oil throughput barrel |
$ |
8.49 |
$ |
7.16 |
$ |
9.27 |
$ |
14.45 |
|||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining Margin adjusted for FIFO impact |
$ |
139.5 |
$ |
132.1 |
$ |
620.0 |
$ |
1,078.6 |
|||||||
Divided by: crude oil throughput barrels |
19.1 |
14.7 |
72.5 |
70.5 |
|||||||||||
Refining Margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
7.32 |
$ |
8.96 |
$ |
8.55 |
$ |
15.31 |
Coffeyville Refinery |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Total crude oil throughput barrels per day |
132,351 |
77,224 |
124,169 |
113,305 |
|||||||||||
Days in the period |
92 |
92 |
366 |
365 |
|||||||||||
Total crude oil throughput barrels |
12,176,292 |
7,104,608 |
45,445,854 |
41,356,325 |
|||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining Margin |
$ |
104.1 |
$ |
32.1 |
$ |
435.0 |
$ |
594.5 |
|||||||
Divided by: crude oil throughput barrels |
12.2 |
7.1 |
45.4 |
41.4 |
|||||||||||
Refining Margin per crude oil throughput barrel |
$ |
8.55 |
$ |
4.52 |
$ |
9.57 |
$ |
14.37 |
|||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining Margin adjusted for FIFO impact |
$ |
88.7 |
$ |
49.5 |
$ |
397.2 |
$ |
632.5 |
|||||||
Divided by: crude oil throughput barrels |
12.2 |
7.1 |
45.4 |
41.4 |
|||||||||||
Refining Margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
7.29 |
$ |
6.97 |
$ |
8.74 |
$ |
15.29 |
Wynnewood Refinery |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Total crude oil throughput barrels per day |
75,071 |
82,915 |
73,873 |
79,772 |
|||||||||||
Days in the period |
92 |
92 |
366 |
365 |
|||||||||||
Total crude oil throughput barrels |
6,906,532 |
7,628,180 |
27,037,518 |
29,116,780 |
|||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining Margin |
$ |
56.7 |
$ |
72.8 |
$ |
232.6 |
$ |
420.6 |
|||||||
Divided by: crude oil throughput barrels |
6.9 |
7.6 |
27.0 |
29.1 |
|||||||||||
Refining Margin per crude oil throughput barrel |
$ |
8.20 |
$ |
9.54 |
$ |
8.60 |
$ |
14.44 |
|||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Refining Margin adjusted for FIFO impact |
$ |
49.7 |
$ |
82.0 |
$ |
218.4 |
$ |
442.9 |
|||||||
Divided by: crude oil throughput barrels |
6.9 |
7.6 |
27.0 |
29.1 |
|||||||||||
Refining Margin adjusted for FIFO impact per crude oil throughput barrel |
$ |
7.19 |
$ |
10.74 |
$ |
8.07 |
$ |
15.21 |
Gross profit (loss) excluding flood insurance recovery is calculated as the difference between net sales, cost of materials and other, direct operating expenses (exclusive of depreciation and amortization), major scheduled turnaround expenses and depreciation and amortization. Gross profit (loss) excluding flood insurance recovery per crude oil throughput barrel is calculated as gross profit (loss) excluding flood insurance recovery as derived above divided by our refineries' crude oil throughput volumes for the respective periods presented. Gross profit (loss) excluding flood insurance recovery is a non-GAAP measure that should not be substituted for operating income (loss). Management believes it is important to investors in evaluating our refineries' performance and our ongoing operating results. Our calculation of gross profit (loss) excluding flood insurance recovery may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. The calculation of gross profit (loss) excluding flood insurance recovery and gross profit (loss) excluding flood insurance recovery per crude oil throughput barrel for the three months and years ended December 31, 2016 and 2015 is as follows:
Consolidated Operating Data |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Net Sales |
$ |
1,269.4 |
$ |
948.3 |
$ |
4,431.3 |
$ |
5,161.9 |
|||||||
Cost of materials and other |
1,107.5 |
842.8 |
3,759.2 |
4,143.6 |
|||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
94.7 |
188.7 |
393.4 |
478.5 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
32.6 |
31.5 |
126.3 |
128.0 |
|||||||||||
Gross profit (loss) |
34.6 |
(114.7) |
152.4 |
439.1 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Gross profit (loss) excluding flood insurance recovery |
$ |
34.6 |
$ |
(114.7) |
$ |
152.4 |
$ |
411.8 |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Gross profit excluding flood insurance recovery |
$ |
34.6 |
$ |
(114.7) |
$ |
152.4 |
$ |
411.8 |
|||||||
Divided by: Crude oil throughput barrels |
19.1 |
14.7 |
72.5 |
70.5 |
|||||||||||
Gross profit (loss) excluding flood insurance recovery per crude oil throughput barrel |
$ |
1.81 |
$ |
(7.80) |
$ |
2.10 |
$ |
5.84 |
Coffeyville Refinery |
|||||||||||||||
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Net Sales |
$ |
854.7 |
$ |
522.6 |
$ |
2,948.9 |
$ |
3,220.6 |
|||||||
Cost of materials and other |
750.6 |
490.5 |
2,513.9 |
2,626.1 |
|||||||||||
Direct operating expenses (exclusive of depreciation and amortization as reflected below) |
52.0 |
53.5 |
196.4 |
209.1 |
|||||||||||
Major schedule turnaround expenses |
— |
84.9 |
31.5 |
102.2 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
18.4 |
17.5 |
69.7 |
72.1 |
|||||||||||
Gross profit (loss) |
33.7 |
(123.8) |
137.4 |
238.4 |
|||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||
Gross profit (loss) excluding flood insurance recovery |
$ |
33.7 |
$ |
(123.8) |
$ |
137.4 |
$ |
211.1 |
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except for $ per barrel data) | |||||||||||||||
Gross profit (loss) excluding flood insurance recovery |
$ |
33.7 |
$ |
(123.8) |
$ |
137.4 |
$ |
211.1 |
|||||||
Divided by: Crude oil throughput barrels |
12.2 |
7.1 |
45.4 |
41.4 |
|||||||||||
Gross profit (loss) excluding flood insurance recovery per crude oil throughput barrel |
$ |
2.76 |
$ |
(17.42) |
$ |
3.03 |
$ |
5.11 |
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact (favorable) unfavorable; (ii) share-based compensation, non-cash; (iii) loss on extinguishment of debt; (iv) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude form their measures of EBITDA and adjusted EBITDA); (v) (gain) loss on derivatives, net; (vi) current period settlements on derivative contracts and (vii) flood insurance recovery. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three months and years ended December 31, 2016 and 2015 is as follows:
Three Months Ended December 31, |
Year Ended December 31, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Net income (loss) |
$ |
(10.7) |
$ |
(122.2) |
$ |
15.3 |
$ |
291.2 |
|||||||
Add: |
|||||||||||||||
Interest expense and other financing costs, net of interest income |
11.6 |
10.4 |
43.3 |
42.2 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
33.4 |
32.1 |
129.0 |
130.2 |
|||||||||||
EBITDA |
34.3 |
(79.7) |
187.6 |
463.6 |
|||||||||||
Add: |
|||||||||||||||
FIFO impact (favorable) unfavorable |
(22.4) |
26.6 |
(52.1) |
60.3 |
|||||||||||
Share-based compensation, non-cash |
— |
0.1 |
— |
0.6 |
|||||||||||
Major scheduled turnaround expenses |
— |
84.9 |
31.5 |
102.2 |
|||||||||||
(Gain) loss on derivatives, net |
14.6 |
(23.6) |
19.4 |
28.6 |
|||||||||||
Current period settlements on derivative contracts(1) |
1.2 |
8.1 |
36.4 |
(26.0) |
|||||||||||
Flood insurance recovery(2) |
— |
— |
— |
(27.3) |
|||||||||||
Adjusted EBITDA |
$ |
27.7 |
$ |
16.4 |
$ |
222.8 |
$ |
602.0 |
_________________________
(1) |
Represents the portion of gain (loss) on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
(2) |
Represents an insurance recovery from environmental insurance carriers as a result of the flood and crude oil discharge at the Coffeyville refinery on June/July 2007. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income (loss) or operating income (loss) as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Ended December 31, 2016 |
Year Ended December 31, 2016 | ||||||
(in millions, except per unit data) | |||||||
Adjusted EBITDA |
$ |
27.7 |
$ |
222.8 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(40.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(17.7) |
(114.1) |
|||||
Reserves for major scheduled turnaround expenses |
— |
(48.7) |
|||||
Reserves for future operating needs |
— |
(19.7) |
|||||
Available cash for distribution |
$ |
— |
$ |
0.3 |
|||
Available cash for distribution, per unit |
$ |
— |
$ |
— |
|||
Distribution declared, per unit |
$ |
— |
$ |
— |
|||
Common units outstanding |
147.6 |
147.6 |
Q1 2017 Outlook. The table below summarizes our outlook for certain refining statistics for the first quarter of 2017. See "forward looking statements."
Q1 2017 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
195,000 |
210,000 | |||
Total refining production (bpd) |
205,000 |
220,000 |
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 2, 2017 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2016 fourth quarter results on Thursday, Feb. 16, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on Feb. 16 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/19480. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/19480. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13653930.
CVR Refining's 2016 fourth quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, more than 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
SOURCE CVR Refining, LP
TULSA, Okla., Jan. 31, 2017 /PRNewswire/ -- Velocity Midstream Partners, LLC ("Velocity") today announced that Velocity Central Oklahoma Pipeline LLC, a wholly owned subsidiary of Velocity Midstream, has obtained long-term customer commitments supporting the construction of a second oil pipeline through the fairway of the South Central Oklahoma Oil Province ("SCOOP"), located south and southwest of Oklahoma City, providing connections to Cushing and the Wynnewood refinery owned by CVR Refining, LP (NYSE:CVRR).
Velocity has secured long-term anchor customers to support the new 41-mile 8"pipeline and four (4) terminal expansions that will allow producers to deliver as much as 100,000 barrels per day of truck injected or pipeline gathered barrels to the most reliable and competitive markets. This new pipeline will directly connect to Velocity's previously announced 26-mile 12" Wynnewood Pipeline project set to be in service this April at an initial capacity of 45,000 barrels of oil per day and maximum capacity of 120,000 barrels of oil per day.
The new pipeline runs parallel to Velocity's existing SCOOP system which is fully contracted and has a current capacity of 100,000 barrels per day. The new pipeline and planned gathering lines, coupled with the four (4) newly constructed dual-product truck injection terminals, will enable producers throughout the SCOOP to segregate their heavier crude barrels (produced from the Springer and Woodford oil formations) from their lighter barrels (produced from the Woodford condensate formation). The pipeline and gathering assets dramatically reduce or eliminate trucking costs and provide product segregation for barrels that have distinctly different uses and markets.
With several recent acreage acquisitions in the SCOOP, permits doubling since this time last year, and a marked increase in rig counts, the new pipeline system, planned to be in service mid-2017, will support this increase in development activity and the associated increases in crude oil and light oil production. Velocity's multi-pipeline corridor through the fairway of the SCOOP allows it to reach more than 400,000 proved gross acres of the Woodford formation and more than 200,000 proved gross acres of the Springer formation, most of which is located within less than 10 miles of Velocity's main pipeline corridor.
"This new pipeline project allows Velocity to leverage and broaden its existing footprint in Grady, Stephens, Garvin and McClain counties," said Van Nguyen, Velocity Midstream's COO. "Velocity will utilize its multi-line rights of way, construction crews, and operations teams already assembled to quickly and cost-effectively construct and operate the second pipeline and expanded terminal facilities. Additionally, Velocity will continue to build out gathering laterals and injection stations to better serve SCOOP producers."
"We are excited to complete the Wynnewood Pipeline and to announce the looping of our existing SCOOP system in support of increased activity in the crude oil and condensate windows of the SCOOP play," said Rick Wilkerson, Velocity Midstream's President and CEO. "Velocity is focused on serving the producers in the SCOOP by decreasing their transportation costs and connecting their barrels to the highest valued and most reliable markets."
About Velocity Midstream Partners, LLC
Velocity (www.velocitymidstream.com) is an independent midstream service provider that engineers, constructs, and operates crude oil and natural gas gathering and transportation solutions. Velocity was formed in 2008 by Rick Wilkerson and Mike Parker. COO Van Nguyen joined Velocity in 2010. Velocity partnered with Energy Spectrum Capital (www.energyspectrumcapital.com) in 2008. Velocity currently owns and operates three crude terminals and 75+ miles of crude oil gathering and pipeline transportation assets through the core of the SCOOP play in Central Oklahoma.
SOURCE Velocity Midstream Partners, LLC
SUGAR LAND, Texas, Oct. 27, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced third quarter 2016 net income of $15.9 million on net sales of $1,163.5 million, compared to net income of $138.9 million on net sales of $1,361.6 million for the third quarter of 2015. Adjusted EBITDA, a non-GAAP financial measure, for the 2016 third quarter was $75.3 million compared to adjusted EBITDA of $229.6 million for the 2015 third quarter.
For the first nine months of 2016, net income was $26.0 million on net sales of $3,161.9 million, compared to net income of $413.4 million on net sales of $4,213.6 million for the comparable period a year earlier. Adjusted EBITDA for the first nine months of 2016 was $195.1 million, compared to adjusted EBITDA of $585.6 million for the first nine months of 2015.
"A highlight of the 2016 third quarter was the signing of a definitive agreement with Velocity Midstream Partners for the construction of a crude oil pipeline directly linking the fairway of the South Central Oklahoma Oil Province (SCOOP) to CVR Refining's Wynnewood refinery, which will further enhance our crude supply," said Jack Lipinski, chief executive officer. "Our Coffeyville refinery also ran exceptionally well during the quarter with a total crude throughput of 130,393 barrels per day (bpd).
"As I mentioned last quarter, the exorbitant costs of Renewable Identification Numbers (RINs) under the broken Renewable Fuel Standard (RFS) program continue to negatively impact our overall financial results," Lipinski said. "The Environmental Protection Agency (EPA) must change the point of obligation and pull back on its proposed 2017 Renewable Volume Obligations (RVOs) before escalating RIN prices cause irreparable harm to merchant refiners. The EPA is now in the process of literally destroying small and medium-sized merchant refineries like ours that do not control the blending and retail sale of their fuel.
"It is absurd that the EPA continues to punish and ruin merchant refineries that have done nothing wrong when the EPA itself admits that the RFS program is not working," he continued. "The primary beneficiaries of the broken RFS program are 'Big Oil,' large retail chains and the Wall Street speculators that are manipulating the RINs' market for illicit gain, causing the compliance costs of merchant refineries to skyrocket - all with the EPA's imprimatur. Even the EPA's own former Chief of Criminal Investigations, Doug Parker, recently stated publicly that 'structural vulnerabilities in the regulations, limited agency oversight, and a lack of market transparency within the RFS made this program a ripe target for massive fraud and illicit gain.'
"The EPA now has the opportunity to avert another 2008-style financial crisis, but only if it takes resolute and immediate action," Lipinski added. "If regulatory oversight of the 'wild west' RINs' market, as well as an investigation of the criminal activities identified by Doug Parker, are not brought to bear, a number of small and medium-sized refineries will be driven into bankruptcy, which will do for 'Big Oil' what the Federal Trade Commission would never allow them to do for themselves - destroy all of their competitors in the refining business. This will allow them to strengthen oligopolies that will control the supply of gasoline, giving them the ability to cause prices to spike and squeeze consumers at will, which will start a domino effect, crippling the transportation industry and causing many businesses to suffer and even fail.
"We therefore implore the EPA, before it is too late and its rule becomes final on Nov. 30, to take decisive action - by drastically lowering the proposed RVOs for 2017," he said. "It is important to note that the volumes of ethanol and biofuels that the EPA has indicated it will require refineries to blend in 2017 are mathematically impossible to achieve. Therefore, the demands being made on merchant refineries will be impossible for them to achieve. This has become an 'Alice in Wonderland' situation - but it is not funny because of the dire consequences that it will soon manifest.
"We invite everyone to visit our new online resource, www.FixTheRFS.org, to learn more about these important issues, our position and how the EPA can fix this broken program," Lipinski concluded.
Consolidated Operations
Third quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks totaled 206,733 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 210,917 bpd for the same period in 2015.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $10.09 in the 2016 third quarter, compared to $18.65 during the same period in 2015. Direct operating expenses (exclusive of depreciation and amortization), excluding major scheduled turnaround expenses, per crude oil throughput barrel, for the 2016 third quarter were $5.33, compared to $5.27 in the third quarter of 2015.
Distributions
CVR Refining will not pay a cash distribution for the 2016 third quarter. CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, RINs' costs and cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Third Quarter 2016 Earnings Conference Call
CVR Refining previously announced that it will host its third quarter 2016 Earnings Conference Call for analysts and investors on Thursday, Oct. 27, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the Partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at
https://www.webcaster4.com/Webcast/Page/1005/17702. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at
https://www.webcaster4.com/Webcast/Page/1005/17702. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13647399.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
CVR Refining, LP | ||||||||||||||||
Financial and Operational Data (all information in this release is unaudited except as otherwise noted). | ||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(in millions, except per unit data) | ||||||||||||||||
Statement of Operations Data: |
||||||||||||||||
Net sales |
$ |
1,163.5 |
$ |
1,361.6 |
$ |
3,161.9 |
$ |
4,213.6 |
||||||||
Cost of product sold |
987.5 |
1,063.7 |
2,651.7 |
3,300.8 |
||||||||||||
Direct operating expenses (1) |
97.0 |
112.6 |
298.7 |
289.9 |
||||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
||||||||||||
Selling, general and administrative expenses |
18.1 |
18.2 |
53.4 |
54.9 |
||||||||||||
Depreciation and amortization |
32.5 |
29.9 |
95.6 |
98.1 |
||||||||||||
Operating income |
28.4 |
137.2 |
62.5 |
497.2 |
||||||||||||
Interest expense and other financing costs |
(10.8) |
(10.4) |
(31.7) |
(32.2) |
||||||||||||
Interest income |
— |
0.1 |
— |
0.3 |
||||||||||||
Gain (loss) on derivatives, net |
(1.7) |
11.8 |
(4.8) |
(52.2) |
||||||||||||
Other income, net |
— |
0.2 |
— |
0.3 |
||||||||||||
Income before income tax expense |
15.9 |
138.9 |
26.0 |
413.4 |
||||||||||||
Income tax expense |
— |
— |
— |
— |
||||||||||||
Net income |
$ |
15.9 |
$ |
138.9 |
$ |
26.0 |
$ |
413.4 |
||||||||
Net income per common unit - basic and diluted |
$ |
0.11 |
$ |
0.94 |
$ |
0.18 |
$ |
2.80 |
||||||||
Adjusted EBITDA* |
$ |
75.3 |
$ |
229.6 |
$ |
195.1 |
$ |
585.6 |
||||||||
Available cash for distribution* |
$ |
0.3 |
$ |
149.7 |
$ |
0.3 |
$ |
405.7 |
||||||||
Weighted average, number of common units outstanding: |
||||||||||||||||
Basic and diluted |
147.6 |
147.6 |
147.6 |
147.6 |
||||||||||||
* See "Use of Non-GAAP Financial Measures" below. | ||||||||||||||||
(1) Direct operating expenses includes $0.0 million and $31.5 million of major scheduled turnaround expenses during the three and nine months ended September 30, 2016, respectively. |
As of September |
As of December 31, | ||||||||||
(audited) | |||||||||||
(in millions) | |||||||||||
Balance Sheet Data: |
|||||||||||
Cash and cash equivalents |
$ |
285.9 |
$ |
187.3 |
|||||||
Working capital (1) |
345.0 |
297.5 |
|||||||||
Total assets (1) |
2,277.3 |
2,189.0 |
|||||||||
Total debt, including current portion (1) |
573.3 |
573.8 |
|||||||||
Total partners' capital |
1,307.4 |
1,281.4 |
|||||||||
(1) Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt. |
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
145.6 |
$ |
258.4 |
$ |
186.4 |
$ |
566.9 |
|||||||
Investing activities |
(18.6) |
(45.4) |
(86.6) |
(123.5) |
|||||||||||
Financing activities |
(0.4) |
(145.1) |
(1.2) |
(312.5) |
|||||||||||
Net cash flow |
$ |
126.6 |
$ |
67.9 |
$ |
98.6 |
$ |
130.9 |
|||||||
Capital expenditures for property, plant and equipment: |
|||||||||||||||
Maintenance capital expenditures |
$ |
10.5 |
$ |
25.8 |
$ |
50.1 |
$ |
66.5 |
|||||||
Growth capital expenditures |
4.9 |
19.7 |
33.3 |
57.1 |
|||||||||||
Total capital expenditures |
$ |
15.4 |
$ |
45.5 |
$ |
83.4 |
$ |
123.6 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Refining margin* |
$ |
9.66 |
$ |
16.17 |
$ |
9.55 |
$ |
16.38 |
|||||||
FIFO impact, (favorable) unfavorable |
0.43 |
2.48 |
(0.56) |
0.60 |
|||||||||||
Refining margin adjusted for FIFO impact* |
10.09 |
18.65 |
8.99 |
16.98 |
|||||||||||
Gross profit |
2.55 |
8.44 |
2.17 |
9.91 |
|||||||||||
Gross profit excluding flood insurance recovery* |
2.55 |
8.44 |
2.17 |
9.42 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
5.33 |
6.11 |
5.59 |
5.20 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.33 |
5.27 |
5.00 |
4.89 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
5.04 |
5.79 |
5.24 |
4.88 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
5.04 |
$ |
4.99 |
$ |
4.68 |
$ |
4.59 |
|||||||
Barrels sold (barrels per day) |
209,228 |
211,440 |
208,192 |
217,696 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
176,404 |
85.3 |
% |
185,228 |
87.8 |
% |
174,594 |
85.4 |
% |
184,481 |
85.5 |
% | |||||||||||||||
Medium |
1,983 |
1.0 |
% |
2,037 |
1.0 |
% |
2,321 |
1.1 |
% |
3,220 |
1.5 |
% | |||||||||||||||
Heavy sour |
19,568 |
9.5 |
% |
12,891 |
6.1 |
% |
17,978 |
8.9 |
% |
16,476 |
7.7 |
% | |||||||||||||||
Total crude oil throughput |
197,955 |
95.8 |
% |
200,156 |
94.9 |
% |
194,893 |
95.4 |
% |
204,177 |
94.7 |
% | |||||||||||||||
All other feedstocks and blendstocks |
8,778 |
4.2 |
% |
10,761 |
5.1 |
% |
9,476 |
4.6 |
% |
11,487 |
5.3 |
% | |||||||||||||||
Total throughput |
206,733 |
100.0 |
% |
210,917 |
100.0 |
% |
204,369 |
100.0 |
% |
215,664 |
100.0 |
% | |||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
106,120 |
51.2 |
% |
103,479 |
48.9 |
% |
106,774 |
52.2 |
% |
106,650 |
49.1 |
% | |||||||||||||||
Distillate |
84,669 |
40.9 |
% |
88,479 |
41.8 |
% |
83,101 |
40.6 |
% |
91,262 |
42.0 |
% | |||||||||||||||
Other (excluding internally produced fuel) |
16,390 |
7.9 |
% |
19,608 |
9.3 |
% |
14,738 |
7.2 |
% |
19,210 |
8.9 |
% | |||||||||||||||
Total refining production (excluding internally produced fuel) |
207,179 |
100.0 |
% |
211,566 |
100.0 |
% |
204,613 |
100.0 |
% |
217,122 |
100.0 |
% | |||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.45 |
$ |
1.72 |
$ |
1.31 |
$ |
1.69 |
|||||||||||||||||||
Distillate |
1.45 |
1.60 |
1.30 |
1.70 |
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
44.94 |
$ |
46.50 |
$ |
41.53 |
$ |
51.01 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
1.47 |
(1.62) |
0.82 |
(0.47) |
|||||||||||
WTI less WCS (heavy sour) |
14.23 |
15.14 |
13.59 |
12.79 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
13.73 |
22.23 |
16.24 |
22.30 |
|||||||||||
Heating Oil |
14.34 |
20.05 |
13.04 |
22.87 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
14.03 |
21.14 |
14.64 |
22.59 |
|||||||||||
PADD II Group 3 Basis: |
|||||||||||||||
Gasoline |
0.48 |
0.63 |
(3.59) |
(2.99) |
|||||||||||
Ultra Low Sulfur Diesel |
1.01 |
0.27 |
(0.38) |
(2.61) |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
14.21 |
22.87 |
12.65 |
19.31 |
|||||||||||
Ultra Low Sulfur Diesel |
15.35 |
20.31 |
12.65 |
20.26 |
|||||||||||
PADD II Group 3 2-1-1 |
14.78 |
21.59 |
12.65 |
19.78 |
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||
(in millions, except operating statistics) | |||||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||||
Net sales |
$ |
788.1 |
$ |
840.0 |
$ |
2,094.1 |
$ |
2,698.0 |
|||||||||
Cost of product sold |
669.9 |
669.9 |
1,763.3 |
2,135.6 |
|||||||||||||
Refining margin* |
118.2 |
170.1 |
330.8 |
562.4 |
|||||||||||||
Direct operating expenses |
50.7 |
54.0 |
144.5 |
155.6 |
|||||||||||||
Major scheduled turnaround expenses |
— |
15.6 |
31.5 |
17.2 |
|||||||||||||
Flood insurance recovery |
— |
— |
— |
(27.3) |
|||||||||||||
Depreciation and amortization |
17.7 |
15.7 |
51.4 |
54.7 |
|||||||||||||
Gross profit |
$ |
49.8 |
$ |
84.8 |
$ |
103.4 |
$ |
362.2 |
|||||||||
Refining margin adjusted for FIFO impact* |
$ |
122.2 |
$ |
201.3 |
$ |
308.4 |
$ |
582.9 |
|||||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||||
Refining margin* |
$ |
9.86 |
$ |
15.57 |
$ |
9.94 |
$ |
16.42 |
|||||||||
FIFO impact, (favorable) unfavorable |
0.33 |
2.85 |
(0.67) |
0.60 |
|||||||||||||
Refining margin adjusted for FIFO impact* |
10.19 |
18.42 |
9.27 |
17.02 |
|||||||||||||
Gross profit |
4.15 |
7.76 |
3.11 |
10.58 |
|||||||||||||
Gross profit excluding flood insurance recovery* |
4.15 |
7.76 |
3.11 |
9.78 |
|||||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.23 |
6.37 |
5.29 |
5.05 |
|||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.23 |
4.95 |
4.34 |
4.54 |
|||||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
3.93 |
5.95 |
4.80 |
4.61 |
|||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
3.93 |
$ |
4.62 |
$ |
3.94 |
$ |
4.15 |
|||||||||
Barrels sold (barrels per day) |
140,256 |
127,089 |
133,729 |
137,365 |
|||||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||||||||||
Sweet |
110,825 |
81.0 |
% |
105,314 |
83.3 |
% |
101,803 |
79.2 |
% |
106,256 |
79.2 |
% | |||||||||||||||||||||||
Medium |
— |
— |
% |
552 |
0.4 |
% |
1,641 |
1.3 |
% |
2,732 |
2.0 |
% | |||||||||||||||||||||||
Heavy sour |
19,568 |
14.3 |
% |
12,891 |
10.2 |
% |
17,978 |
13.9 |
% |
16,476 |
12.3 |
% | |||||||||||||||||||||||
Total crude oil throughput |
130,393 |
95.3 |
% |
118,757 |
93.9 |
% |
121,422 |
94.4 |
% |
125,464 |
93.5 |
% | |||||||||||||||||||||||
All other feedstocks and blendstocks |
6,399 |
4.7 |
% |
7,753 |
6.1 |
% |
7,193 |
5.6 |
% |
8,691 |
6.5 |
% | |||||||||||||||||||||||
Total throughput |
136,792 |
100.0 |
% |
126,510 |
100.0 |
% |
128,615 |
100.0 |
% |
134,155 |
100.0 |
% | |||||||||||||||||||||||
Production: |
|||||||||||||||||||||||||||||||||||
Gasoline |
70,013 |
50.3 |
% |
60,849 |
47.3 |
% |
67,298 |
51.5 |
% |
65,000 |
47.4 |
% | |||||||||||||||||||||||
Distillate |
57,839 |
41.6 |
% |
55,521 |
43.1 |
% |
54,192 |
41.5 |
% |
59,050 |
43.0 |
% | |||||||||||||||||||||||
Other (excluding internally produced fuel) |
11,286 |
8.1 |
% |
12,407 |
9.6 |
% |
9,191 |
7.0 |
% |
13,115 |
9.6 |
% | |||||||||||||||||||||||
Total refining production (excluding internally produced fuel) |
139,138 |
100.0 |
% |
128,777 |
100.0 |
% |
130,681 |
100.0 |
% |
137,165 |
100.0 |
% | |||||||||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||||||||||
(in millions, except operating statistics) | |||||||||||||||||||||||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||||||||||||||||||||||
Net sales |
$ |
374.3 |
$ |
520.5 |
$ |
1,064.4 |
$ |
1,512.3 |
|||||||||||||||||||||||||||
Cost of product sold |
317.7 |
393.1 |
888.5 |
1,164.5 |
|||||||||||||||||||||||||||||||
Refining margin* |
56.6 |
127.4 |
175.9 |
347.8 |
|||||||||||||||||||||||||||||||
Direct operating expenses |
46.3 |
42.9 |
122.7 |
117.0 |
|||||||||||||||||||||||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
— |
|||||||||||||||||||||||||||||||
Depreciation and amortization |
12.7 |
12.5 |
38.0 |
37.6 |
|||||||||||||||||||||||||||||||
Gross profit (loss) |
$ |
(2.4) |
$ |
72.0 |
$ |
15.2 |
$ |
193.2 |
|||||||||||||||||||||||||||
Refining margin adjusted for FIFO impact* |
$ |
60.4 |
$ |
141.8 |
$ |
168.6 |
$ |
361.0 |
|||||||||||||||||||||||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||||||||||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||||||||||||||||||||||
Refining margin* |
$ |
9.10 |
$ |
17.01 |
$ |
8.74 |
$ |
16.18 |
|||||||||||||||||||||||||||
FIFO impact, (favorable) unfavorable |
0.61 |
1.93 |
(0.36) |
0.61 |
|||||||||||||||||||||||||||||||
Refining margin adjusted for FIFO impact* |
9.71 |
18.94 |
8.38 |
16.79 |
|||||||||||||||||||||||||||||||
Gross profit (loss) |
(0.39) |
9.61 |
0.76 |
8.99 |
|||||||||||||||||||||||||||||||
Direct operating expenses and major scheduled turnaround expenses |
7.45 |
5.73 |
6.10 |
5.44 |
|||||||||||||||||||||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
7.45 |
5.73 |
6.10 |
5.44 |
|||||||||||||||||||||||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
7.29 |
5.53 |
6.01 |
5.33 |
|||||||||||||||||||||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
7.29 |
$ |
5.53 |
$ |
6.01 |
$ |
5.33 |
|||||||||||||||||||||||||||
Barrels sold (barrels per day) |
68,971 |
84,351 |
74,463 |
80,332 |
|||||||||||||||||||||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
65,579 |
93.8 |
% |
79,914 |
94.6 |
% |
72,791 |
96.1 |
% |
78,225 |
96.0 |
% | |||||||||||
Medium |
1,983 |
2.8 |
% |
1,485 |
1.8 |
% |
680 |
0.9 |
% |
488 |
0.6 |
% | |||||||||||
Heavy sour |
— |
— |
% |
— |
— |
% |
— |
— |
% |
— |
— |
% | |||||||||||
Total crude oil throughput |
67,562 |
96.6 |
% |
81,399 |
96.4 |
% |
73,471 |
97.0 |
% |
78,713 |
96.6 |
% | |||||||||||
All other feedstocks and blendstocks |
2,379 |
3.4 |
% |
3,008 |
3.6 |
% |
2,283 |
3.0 |
% |
2,796 |
3.4 |
% | |||||||||||
Total throughput |
69,941 |
100.0 |
% |
84,407 |
100.0 |
% |
75,754 |
100.0 |
% |
81,509 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
36,107 |
53.1 |
% |
42,630 |
51.5 |
% |
39,476 |
53.4 |
% |
41,650 |
52.1 |
% | |||||||||||
Distillate |
26,830 |
39.4 |
% |
32,958 |
39.8 |
% |
28,909 |
39.1 |
% |
32,212 |
40.3 |
% | |||||||||||
Other (excluding internally produced fuel) |
5,104 |
7.5 |
% |
7,201 |
8.7 |
% |
5,547 |
7.5 |
% |
6,095 |
7.6 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
68,041 |
100.0 |
% |
82,789 |
100.0 |
% |
73,932 |
100.0 |
% |
79,957 |
100.0 |
% | |||||||||||
Cost of product sold, direct operating expenses and selling, general and administrative expenses are all reflected exclusive of depreciation and amortization. | |||||||||||||||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization). Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of product sold exclusive of depreciation and amortization) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization) adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
Gross profit excluding flood insurance recovery is calculated as the difference between net sales, cost of product sold (exclusive of depreciation and amortization), direct operating expenses (exclusive of depreciation and amortization), major scheduled turnaround expenses and depreciation and amortization. Gross profit excluding flood insurance recovery per crude throughput barrel is calculated as gross profit excluding flood insurance recovery as derived above divided by our refineries' crude oil throughput volumes for the respective periods presented. Gross profit excluding flood insurance recovery is a non-GAAP measure that should not be substituted for operating income. Management believes it is important to investors in evaluating our refineries' performance and our ongoing operating results. Our calculation of gross profit excluding flood insurance recovery may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, (favorable) unfavorable; (ii) share-based compensation, non-cash; (iii) loss on extinguishment of debt; (iv) major scheduled turnaround expenses (that many of our competitors capitalize and thereby exclude from their measures of EBITDA and adjusted EBITDA); (v) (gain) loss on derivatives, net; (vi) current period settlements on derivative contracts and (vii) flood insurance recovery. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA for the three and nine months ended September 30, 2016 and 2015 is as follows:
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||
(in millions) | ||||||||||||||||||
Net income |
$ |
15.9 |
$ |
138.9 |
$ |
26.0 |
$ |
413.4 |
||||||||||
Add: |
||||||||||||||||||
Interest expense and other financing costs, net of interest income |
10.8 |
10.3 |
31.7 |
31.9 |
||||||||||||||
Income tax expense |
— |
— |
— |
— |
||||||||||||||
Depreciation and amortization |
32.5 |
29.9 |
95.6 |
98.1 |
||||||||||||||
EBITDA |
59.2 |
179.1 |
153.3 |
543.4 |
||||||||||||||
Add: |
||||||||||||||||||
FIFO impact, (favorable) unfavorable |
7.7 |
45.6 |
(29.7) |
33.7 |
||||||||||||||
Share-based compensation, non-cash |
— |
0.3 |
— |
0.4 |
||||||||||||||
Major scheduled turnaround expenses |
— |
15.6 |
31.5 |
17.2 |
||||||||||||||
(Gain) loss on derivatives, net |
1.7 |
(11.8) |
4.8 |
52.2 |
||||||||||||||
Current period settlements on derivative contracts(1) |
6.7 |
0.8 |
35.2 |
(34.0) |
||||||||||||||
Flood insurance recovery(2) |
— |
— |
— |
(27.3) |
||||||||||||||
Adjusted EBITDA |
$ |
75.3 |
$ |
229.6 |
$ |
195.1 |
$ |
585.6 |
||||||||||
(1) |
Represents the portion of (gain) loss on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. | |||||||||||||||||
(2) |
Represents an insurance recovery from Coffeyville Resources Refining and Marketing, LLC's environmental insurance carriers as a result of the flood and crude oil discharge at the Coffeyville refinery on June/July 2007. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income or operating income as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Ended September 30, 2016 |
Nine Months Ended September 30, 2016 | ||||||
(in millions, except per unit data) | |||||||
Adjusted EBITDA |
$ |
75.3 |
$ |
195.1 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(30.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(40.0) |
(96.4) |
|||||
Reserves for major scheduled turnaround expenses |
(25.0) |
(48.7) |
|||||
Reserves for future operating needs |
— |
(19.7) |
|||||
Available cash for distribution |
$ |
0.3 |
$ |
0.3 |
|||
Available cash for distribution, per unit |
$ |
— |
$ |
— |
|||
Common units outstanding |
147.6 |
147.6 |
Q4 2016 Outlook. The table below summarizes our outlook for certain refining statistics for the fourth quarter of 2016. See "forward looking statements."
Q4 2016 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
190,000 |
205,000 |
|||
Total refining production (bpd) |
200,000 |
215,000 |
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SOURCE CVR Refining, LP
SUGAR LAND, Texas, Oct. 13, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2016 third quarter results on Thursday, Oct. 27, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on Oct. 27 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/17702. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/17702. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13647399.
CVR Refining's 2016 third quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, more than 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
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SOURCE CVR Refining, LP
TULSA, Okla., and SUGAR LAND, Texas, Sept. 19, 2016 /PRNewswire/ -- Velocity Midstream Partners, LLC ("Velocity") today announced that Velocity Central Oklahoma Pipeline LLC, a wholly owned subsidiary of Velocity Midstream, has entered into definitive agreements with a subsidiary of CVR Refining, LP (NYSE: CVRR), related to Velocity's construction of a crude oil pipeline and terminal directly linking the fairway of the South Central Oklahoma Oil Province ("SCOOP") to CVR Refining's Wynnewood, Oklahoma, refinery.
CVR Refining will hold a 40 percent stake in the newly formed joint venture, Velocity Pipeline Partners, LLC ("VPP"), and it will contract with VPP for transportation services. Velocity will act as manager of the joint venture and operate the pipelines following the completion of the pipeline's construction.
In addition to the Wynnewood refinery, which has a rated capacity of 70,000 barrels per calendar day (bpcd), CVR Refining also owns and operates a crude oil refinery in Coffeyville, Kansas, with a rated capacity of 115,000 bpcd. The Wynnewood refinery is located in close proximity to the SCOOP play and the Cushing hub. Velocity's new crude oil project provides the Wynnewood refinery with direct pipeline access to SCOOP production. The new pipeline also enables producers in the SCOOP to segregate their heavier crude barrels, produced from the Springer and Woodford oil formations, from their lighter barrels, produced from the Woodford condensate formation.
Velocity also expects to commence a subsequent crude oil pipeline project looping the majority of Velocity's existing pipeline. The loop will provide producers crude oil segregation along the entire SCOOP fairway, further reducing crude trucking costs. This forthcoming project will allow Velocity to leverage its existing footprint, multi-line rights of way and construction and operations teams to quickly and cost-effectively construct the second pipeline and expanded terminal facilities. In addition to the construction of crude transportation pipelines and terminals, Velocity will continue to build out gathering laterals and injection stations to better serve SCOOP producers.
Once completed, the addition of Velocity's VPP pipeline and crude oil loop will allow producers to gather and transport crude oil and condensate from points in Grady, Stephens, Garvin, McClain and Carter counties to both the Wynnewood refinery and the Cushing Hub, where CVR Refining maintains significant market outlets, crude storage and pipeline access to its Coffeyville refinery. CVR Refining also owns and operates significant crude oil logistics assets throughout the SCOOP play. The construction of this new crude pipeline allows the company to further optimize those logistical resources. Additionally, the pipeline will add flow assurance in inclement weather as well as reduce traffic and provide other benefits to producers.
"We are excited to undertake this project with CVR Refining to add a crude oil pipeline project to our existing pipeline assets in the SCOOP," said Rick Wilkerson, Velocity's chief executive officer. "The Woodford and Springer crude is attractive to Midcontinent refiners and, coupled with the reduction in crude transportation costs, provides the producers in SCOOP with very strong and reliable markets."
"CVR Refining currently purchases significant volumes of SCOOP production by way of its wholly owned truck gathering fleet and the addition of this new pipeline provides the opportunity to further enhance crude supply to our Wynnewood refinery," said Jack Lipinski, chief executive officer of CVR Refining. "We are pleased to partner with the experienced team at Velocity on this project and look forward to working with them on future endeavors."
In 2015, Velocity completed construction of a 100,000 barrel per day light oil pipeline through the entire core of the SCOOP play for one of the SCOOP's largest producers. Producers in the SCOOP target the Springer and Woodford shale across parts of a multiple-county area located south and southwest of Oklahoma City. Velocity's multi-pipeline corridor through the fairway of the SCOOP allows it to reach more than 400,000 proved gross acres of the Woodford formation and more than 200,000 proved gross acres of the Springer formation, all of which are located within less than 10 miles of the pipeline corridor.
About Velocity Midstream Partners, LLC
Velocity (www.velocitymidstream.com) is an independent midstream service provider that engineers, constructs, and operates crude oil and natural gas gathering and transportation solutions. Velocity was formed in 2008 by Rick Wilkerson and Mike Parker. Van Nguyen, Vice President of Engineering, joined Velocity in 2010. Velocity partnered with Energy Spectrum Capital (www.energyspectrumcapital.com) in 2008. Velocity currently operates three crude terminals 50+ miles of crude oil gathering and pipeline transportation assets through the core of the SCOOP play in Central Oklahoma.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For More Information:
Velocity Midstream Partners, LLC
Rick Wilkerson
President and CEO
918-574-2323
rwilk@VelocityMidstream.com
CVR Refining, LP
Investors:
Jay Finks
Vice President of Finance
281-207-3588
IR@CVRRefining.com
Media:
Angie Dasbach
Vice President of Corporate Affairs
281-207-3550
MediaRelations@CVRRefining.com
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SOURCE CVR Refining, LP
SUGAR LAND, Texas, July 28, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced second quarter 2016 net income of $78.1 million on net sales of $1,164.4 million, compared to net income of $227.8 million on net sales of $1,547.5 million for the second quarter of 2015. Adjusted EBITDA, a non-GAAP financial measure, for the 2016 second quarter was $84.7 million compared to adjusted EBITDA of $194.3 million for the 2015 second quarter.
For the first six months of 2016, net income was $10.1 million on net sales of $1,998.4 million, compared to net income of $274.5 million on net sales of $2,852.0 million for the comparable period a year earlier. Adjusted EBITDA for the first six months of 2016 was $119.8 million, compared to adjusted EBITDA of $356.0 million for the first six months of 2015.
"CVR Refining posted solid operational performance during the 2016 second quarter," said Jack Lipinski, chief executive officer. "The Coffeyville and Wynnewood refineries posted a combined crude throughput of 202,536 barrels per day (bpd), which fell within the range of our outlook despite lower crude rates at the Coffeyville refinery due to restrictions on the Magellan pipeline system.
"While we saw an improvement in refining margins quarter over quarter, we were disappointed in product realizations due to a large overhang of product inventories in the U.S.," Lipinski said. "In addition, the increasing cost of RINs significantly impacted our results. RINs, which we have to purchase to comply with the Renewable Fuel Standard (RFS), have become completely disconnected from the cost of blending and instead have become a source of windfall profits for blenders who the Environmental Protection Agency (EPA) chose to exempt from the program. The RFS program, as currently managed by the EPA, fails on many fronts. Not only are exempt blenders earning windfall profits from selling RINs to refiners who cannot blend, the RFS program allows exempt blenders to retain the profits and not increase biofuel usage in the U.S.
"RINs have become a black pool allowing exempt parties, and even speculators, to drive prices to confiscatory levels. We believe the market may be cornered, the effect of which will be to bring small merchant refiners to the brink of bankruptcy while unjustly enriching speculators and exempt blenders," Lipinski continued. "RINs were intended to be a compliance tool for refiners, not a device to extract windfall profits from obligated parties. The EPA needs to open its eyes and recognize that it must change the point of obligation to close the loophole that allows these exempt blenders, who control the vast majority of biofuels blending, to retain the profits from selling RINs without investing in increasing biofuel use. The windfall serves no regulatory purpose, but creates a system of winners and losers within the fuels industry based on their ability to blend.
"Market experts like Goldman Sachs and Credit Suisse are advising investors to avoid companies with high RIN exposure and to buy shares in large retail and distribution chains, like Casey's General Stores, who are benefitting from this structural flaw in the EPA's rule," he said. "For example, Goldman Sachs predicts that Casey's will see a 1 percent increase in EBITDA for every 10 cent increase in the price of RINs. Adding to concerns about the RIN market is the ability of third parties to buy and sell RINs. At the point that Goldman Sachs is advising investors to buy shares based on their RIN exposure, it seems reasonable to ask the question of whether third-party speculators are buying and selling RINs directly. There are a discrete number of obligated parties. It would be very easy for third parties to buy RINs and corner the market, driving up prices for obligated parties even higher. The EPA has so far refused to disclose the identity of the entities holding, buying and selling RINs, but this certainly should be investigated.
"There are pending lawsuits seeking to compel the EPA to fix the loophole and administrative requests for a rulemaking, both targeted at stopping the flow of profits to exempt parties at the expense of RIN-short refiners. We are hopeful that justice and reason will prevail and that RINs will once again become a compliance tool for refiners and not a windfall profit device for exempt parties," Lipinski concluded.
Consolidated Operations
Second quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks totaled 210,488 bpd. Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 221,095 bpd for the same period in 2015.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $9.56 in the 2016 second quarter, compared to $17.22 during the same period in 2015. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold, exclusive of depreciation and amortization, for the 2016 second quarter were $4.33, compared to $4.43 in the second quarter of 2015.
Distributions
CVR Refining will not pay a cash distribution for the 2016 second quarter.
"As a result of forecasted weaker NYMEX crack spreads and escalating RINs costs, the Board of Directors has determined that it is prudent to retain cash to preserve the company's ability to support necessary future operating needs," Lipinski said. "This reserve may be released to unitholders in the future if margins improve or if RINs prices decline."
CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, and other cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Second Quarter 2016 Earnings Conference Call
CVR Refining previously announced that it will host its second quarter 2016 Earnings Conference Call for analysts and investors on Thursday, July 28, at 1 p.m. Eastern. The Earnings Conference Call may also include discussion of the Partnership's developments, forward-looking information and other material information about business and financial matters.
The Earnings Conference Call will be broadcast live over the Internet at
https://www.webcaster4.com/Webcast/Page/1005/15906. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at
https://www.webcaster4.com/Webcast/Page/1005/15906. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13639901.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
CVR Refining, LP | ||||||||||||||||
Financial and Operational Data (all information in this release is unaudited except as otherwise noted). | ||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||
(in millions, except per unit data) | ||||||||||||||||
Statement of Operations Data: |
||||||||||||||||
Net sales |
$ |
1,164.4 |
$ |
1,547.5 |
$ |
1,998.4 |
$ |
2,852.0 |
||||||||
Cost of product sold |
941.9 |
1,180.9 |
1,664.2 |
2,237.1 |
||||||||||||
Direct operating expenses (1) |
84.0 |
90.3 |
201.7 |
177.3 |
||||||||||||
Flood insurance recovery |
— |
(27.3) |
— |
(27.3) |
||||||||||||
Selling, general and administrative expenses |
16.8 |
18.6 |
35.3 |
36.7 |
||||||||||||
Depreciation and amortization |
31.6 |
34.2 |
63.1 |
68.2 |
||||||||||||
Operating income |
90.1 |
250.8 |
34.1 |
360.0 |
||||||||||||
Interest expense and other financing costs |
(10.1) |
(10.4) |
(20.9) |
(21.7) |
||||||||||||
Interest income |
— |
0.1 |
— |
0.2 |
||||||||||||
Loss on derivatives, net |
(1.9) |
(12.6) |
(3.1) |
(64.0) |
||||||||||||
Other income (expense), net |
— |
(0.1) |
— |
— |
||||||||||||
Income before income tax expense |
78.1 |
227.8 |
10.1 |
274.5 |
||||||||||||
Income tax expense |
— |
— |
— |
— |
||||||||||||
Net income |
$ |
78.1 |
$ |
227.8 |
$ |
10.1 |
$ |
274.5 |
||||||||
Net income per common unit - basic and diluted |
$ |
0.53 |
$ |
1.54 |
$ |
0.07 |
$ |
1.86 |
||||||||
Adjusted EBITDA* |
$ |
84.7 |
$ |
194.3 |
$ |
119.8 |
$ |
356.0 |
||||||||
Available cash for distribution* |
$ |
— |
$ |
144.2 |
$ |
— |
$ |
256.0 |
||||||||
Weighted average, number of common units outstanding: |
||||||||||||||||
Basic and diluted |
147.6 |
147.6 |
147.6 |
147.6 |
||||||||||||
* See "Use of Non-GAAP Financial Measures" below. | ||||||||||||||||
(1) Direct operating expenses includes $2.1 million and $31.5 million of major scheduled turnaround expenses during the three and six months ended June 30, 2016, respectively. |
As of June 30, |
As of December 31, | |||||||||
(audited) | ||||||||||
(in millions) | ||||||||||
Balance Sheet Data: |
||||||||||
Cash and cash equivalents |
$ |
159.3 |
$ |
187.3 |
||||||
Working capital (1) |
317.0 |
297.5 |
||||||||
Total assets (1) |
2,192.7 |
2,189.0 |
||||||||
Total debt, including current portion (1) |
573.4 |
573.8 |
||||||||
Total partners' capital |
1,291.5 |
1,281.4 |
||||||||
(1) Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt. |
Three Months Ended |
Six Months Ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
37.8 |
$ |
160.0 |
$ |
40.8 |
$ |
308.5 |
|||||||
Investing activities |
(24.0) |
(36.4) |
(68.0) |
(78.1) |
|||||||||||
Financing activities |
(0.4) |
(112.5) |
(0.8) |
(167.4) |
|||||||||||
Net cash flow |
$ |
13.4 |
$ |
11.1 |
$ |
(28.0) |
$ |
63.0 |
|||||||
Capital expenditures for property, plant and equipment: |
|||||||||||||||
Maintenance capital expenditures |
$ |
14.3 |
$ |
20.4 |
$ |
39.6 |
$ |
40.7 |
|||||||
Growth capital expenditures |
9.7 |
16.0 |
28.4 |
37.4 |
|||||||||||
Total capital expenditures |
$ |
24.0 |
$ |
36.4 |
$ |
68.0 |
$ |
78.1 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended |
Six Months Ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Refining margin* |
$ |
12.07 |
$ |
19.12 |
$ |
9.50 |
$ |
16.47 |
|||||||
FIFO impact, favorable |
(2.51) |
(1.90) |
(1.06) |
(0.32) |
|||||||||||
Refining margin adjusted for FIFO impact* |
9.56 |
17.22 |
8.44 |
16.15 |
|||||||||||
Gross profit* |
5.80 |
14.05 |
1.97 |
10.63 |
|||||||||||
Gross profit excluding flood insurance recovery* |
5.80 |
12.63 |
1.97 |
9.90 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.56 |
4.71 |
5.73 |
4.75 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.45 |
4.62 |
4.84 |
4.71 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
4.33 |
4.43 |
5.34 |
4.43 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.22 |
$ |
4.35 |
$ |
4.50 |
$ |
4.39 |
|||||||
Barrels sold (barrels per day) |
213,368 |
224,031 |
207,669 |
220,876 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended |
Six Months Ended | ||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
176,674 |
83.9 |
% |
192,691 |
87.1 |
% |
173,700 |
85.5 |
% |
184,082 |
84.4 |
% | |||||||||||||||
Medium |
3,429 |
1.6 |
% |
1,082 |
0.5 |
% |
2,471 |
1.2 |
% |
3,841 |
1.8 |
% | |||||||||||||||
Heavy sour |
22,433 |
10.7 |
% |
16,954 |
7.7 |
% |
17,174 |
8.5 |
% |
18,298 |
8.4 |
% | |||||||||||||||
Total crude oil throughput |
202,536 |
96.2 |
% |
210,727 |
95.3 |
% |
193,345 |
95.2 |
% |
206,221 |
94.6 |
% | |||||||||||||||
All other feedstocks and blendstocks |
7,952 |
3.8 |
% |
10,368 |
4.7 |
% |
9,827 |
4.8 |
% |
11,855 |
5.4 |
% | |||||||||||||||
Total throughput |
210,488 |
100.0 |
% |
221,095 |
100.0 |
% |
203,172 |
100.0 |
% |
218,076 |
100.0 |
% | |||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
108,330 |
51.3 |
% |
107,439 |
48.3 |
% |
107,105 |
52.7 |
% |
108,263 |
49.3 |
% | |||||||||||||||
Distillate |
86,622 |
41.0 |
% |
95,881 |
43.1 |
% |
82,309 |
40.5 |
% |
92,675 |
42.1 |
% | |||||||||||||||
Other (excluding internally produced fuel) |
16,280 |
7.7 |
% |
19,160 |
8.6 |
% |
13,900 |
6.8 |
% |
19,011 |
8.6 |
% | |||||||||||||||
Total refining production (excluding internally produced fuel) |
211,232 |
100.0 |
% |
222,480 |
100.0 |
% |
203,314 |
100.0 |
% |
219,949 |
100.0 |
% | |||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.44 |
$ |
1.87 |
$ |
1.24 |
$ |
1.67 |
|||||||||||||||||||
Distillate |
1.37 |
1.81 |
1.22 |
1.75 |
Three Months Ended |
Six Months Ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
45.64 |
$ |
57.95 |
$ |
39.78 |
$ |
53.34 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
0.83 |
(0.71) |
0.49 |
0.12 |
|||||||||||
WTI less WCS (heavy sour) |
12.92 |
9.57 |
13.26 |
11.60 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
19.13 |
26.02 |
17.53 |
22.34 |
|||||||||||
Heating Oil |
12.82 |
21.69 |
12.37 |
24.33 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
15.98 |
23.85 |
14.95 |
23.33 |
|||||||||||
PADD II Group 3 Basis: |
|||||||||||||||
Gasoline |
(5.49) |
(6.19) |
(5.68) |
(4.87) |
|||||||||||
Ultra Low Sulfur Diesel |
(1.18) |
(3.69) |
(1.10) |
(4.10) |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
13.64 |
19.83 |
11.85 |
17.47 |
|||||||||||
Ultra Low Sulfur Diesel |
11.63 |
18.00 |
11.27 |
20.23 |
|||||||||||
PADD II Group 3 2-1-1 |
12.64 |
18.91 |
11.56 |
18.85 |
Three Months Ended |
Six Months Ended | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
778.0 |
$ |
1,006.3 |
$ |
1,306.0 |
$ |
1,858.0 |
|||||||
Cost of product sold |
630.7 |
764.8 |
1,093.4 |
1,465.7 |
|||||||||||
Refining margin* |
147.3 |
241.5 |
212.6 |
392.3 |
|||||||||||
Direct operating expenses |
46.1 |
51.2 |
93.8 |
101.5 |
|||||||||||
Major scheduled turnaround expenses |
2.1 |
1.7 |
31.5 |
1.7 |
|||||||||||
Flood insurance recovery |
— |
(27.3) |
— |
(27.3) |
|||||||||||
Depreciation and amortization |
16.8 |
19.5 |
33.6 |
38.9 |
|||||||||||
Gross profit* |
$ |
82.3 |
$ |
196.4 |
$ |
53.7 |
$ |
277.5 |
|||||||
Refining margin adjusted for FIFO impact* |
$ |
117.1 |
$ |
212.4 |
$ |
186.2 |
$ |
381.7 |
|||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Refining margin* |
$ |
12.71 |
$ |
20.27 |
$ |
9.99 |
$ |
16.82 |
|||||||
FIFO impact, favorable |
(2.62) |
(2.44) |
(1.24) |
(0.46) |
|||||||||||
Refining margin adjusted for FIFO impact* |
10.09 |
17.83 |
8.75 |
16.36 |
|||||||||||
Gross profit* |
7.10 |
16.49 |
2.53 |
11.89 |
|||||||||||
Gross profit excluding flood insurance recovery* |
7.10 |
14.20 |
2.53 |
10.72 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
4.16 |
4.43 |
5.89 |
4.43 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
3.98 |
4.29 |
4.41 |
4.35 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
3.84 |
4.03 |
5.28 |
4.00 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
3.67 |
$ |
3.90 |
$ |
3.95 |
$ |
3.94 |
|||||||
Barrels sold (barrels per day) |
138,021 |
144,183 |
130,429 |
142,587 |
|||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Three Months Ended |
Six Months Ended | |||||||||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
||||||||||||||||||||||||||||||||||
Throughput: |
||||||||||||||||||||||||||||||||||
Sweet |
101,548 |
76.2 |
% |
112,867 |
81.2 |
% |
97,242 |
78.1 |
% |
106,734 |
77.3 |
% | ||||||||||||||||||||||
Medium |
3,429 |
2.6 |
% |
1,082 |
0.8 |
% |
2,471 |
2.0 |
% |
3,841 |
2.8 |
% | ||||||||||||||||||||||
Heavy sour |
22,433 |
16.8 |
% |
16,954 |
12.2 |
% |
17,174 |
13.8 |
% |
18,298 |
13.3 |
% | ||||||||||||||||||||||
Total crude oil throughput |
127,410 |
95.6 |
% |
130,903 |
94.2 |
% |
116,887 |
93.9 |
% |
128,873 |
93.4 |
% | ||||||||||||||||||||||
All other feedstocks and blendstocks |
5,844 |
4.4 |
% |
8,122 |
5.8 |
% |
7,594 |
6.1 |
% |
9,168 |
6.6 |
% | ||||||||||||||||||||||
Total throughput |
133,254 |
100.0 |
% |
139,025 |
100.0 |
% |
124,481 |
100.0 |
% |
138,041 |
100.0 |
% | ||||||||||||||||||||||
Production: |
||||||||||||||||||||||||||||||||||
Gasoline |
67,819 |
49.9 |
% |
66,374 |
46.6 |
% |
65,927 |
52.2 |
% |
67,110 |
47.5 |
% | ||||||||||||||||||||||
Distillate |
57,549 |
42.4 |
% |
62,257 |
43.7 |
% |
52,348 |
41.4 |
% |
60,843 |
43.0 |
% | ||||||||||||||||||||||
Other (excluding internally produced fuel) |
10,491 |
7.7 |
% |
13,722 |
9.7 |
% |
8,130 |
6.4 |
% |
13,477 |
9.5 |
% | ||||||||||||||||||||||
Total refining production (excluding internally produced fuel) |
135,859 |
100.0 |
% |
142,353 |
100.0 |
% |
126,405 |
100.0 |
% |
141,430 |
100.0 |
% | ||||||||||||||||||||||
Three Months Ended |
Six Months Ended | |||||||||||||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||||||||||||||||||
(in millions, except operating statistics) | ||||||||||||||||||||||||||||||||||
Wynnewood Refinery Financial Results: |
||||||||||||||||||||||||||||||||||
Net sales |
$ |
385.3 |
$ |
540.1 |
$ |
690.1 |
$ |
991.8 |
||||||||||||||||||||||||||
Cost of product sold |
311.3 |
415.9 |
570.7 |
771.4 |
||||||||||||||||||||||||||||||
Refining margin* |
74.0 |
124.2 |
119.4 |
220.4 |
||||||||||||||||||||||||||||||
Direct operating expenses |
35.8 |
37.5 |
76.4 |
74.1 |
||||||||||||||||||||||||||||||
Major scheduled turnaround expenses |
— |
— |
— |
— |
||||||||||||||||||||||||||||||
Depreciation and amortization |
12.6 |
12.5 |
25.3 |
25.1 |
||||||||||||||||||||||||||||||
Gross profit* |
$ |
25.6 |
$ |
74.2 |
$ |
17.7 |
$ |
121.2 |
||||||||||||||||||||||||||
Refining margin adjusted for FIFO impact* |
$ |
58.1 |
$ |
116.9 |
$ |
108.4 |
$ |
219.1 |
||||||||||||||||||||||||||
Wynnewood Refinery Key Operating Statistics: |
||||||||||||||||||||||||||||||||||
Per crude oil throughput barrel: |
||||||||||||||||||||||||||||||||||
Refining margin* |
$ |
10.83 |
$ |
17.10 |
$ |
8.58 |
$ |
15.74 |
||||||||||||||||||||||||||
FIFO impact, favorable |
(2.32) |
(1.01) |
(0.79) |
(0.09) |
||||||||||||||||||||||||||||||
Refining margin adjusted for FIFO impact* |
8.51 |
16.09 |
7.79 |
15.65 |
||||||||||||||||||||||||||||||
Gross profit* |
3.74 |
10.21 |
1.27 |
8.66 |
||||||||||||||||||||||||||||||
Direct operating expenses and major scheduled turnaround expenses |
5.24 |
5.16 |
5.49 |
5.29 |
||||||||||||||||||||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.24 |
5.16 |
5.49 |
5.29 |
||||||||||||||||||||||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
5.22 |
5.16 |
5.44 |
5.23 |
||||||||||||||||||||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
5.22 |
$ |
5.16 |
$ |
5.44 |
$ |
5.23 |
||||||||||||||||||||||||||
Barrels sold (barrels per day) |
75,347 |
79,848 |
77,239 |
78,289 |
||||||||||||||||||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
75,126 |
97.3 |
% |
79,824 |
97.3 |
% |
76,458 |
97.2 |
% |
77,348 |
96.6 |
% | |||||||||||
Medium |
— |
— |
% |
— |
— |
% |
— |
— |
% |
— |
— |
% | |||||||||||
Heavy sour |
— |
— |
% |
— |
— |
% |
— |
— |
% |
— |
— |
% | |||||||||||
Total crude oil throughput |
75,126 |
97.3 |
% |
79,824 |
97.3 |
% |
76,458 |
97.2 |
% |
77,348 |
96.6 |
% | |||||||||||
All other feedstocks and blendstocks |
2,108 |
2.7 |
% |
2,246 |
2.7 |
% |
2,233 |
2.8 |
% |
2,687 |
3.4 |
% | |||||||||||
Total throughput |
77,234 |
100.0 |
% |
82,070 |
100.0 |
% |
78,691 |
100.0 |
% |
80,035 |
100.0 |
% | |||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
40,511 |
53.7 |
% |
41,065 |
51.2 |
% |
41,178 |
53.5 |
% |
41,153 |
52.4 |
% | |||||||||||
Distillate |
29,073 |
38.6 |
% |
33,624 |
42.0 |
% |
29,961 |
39.0 |
% |
31,832 |
40.5 |
% | |||||||||||
Other (excluding internally produced fuel) |
5,789 |
7.7 |
% |
5,438 |
6.8 |
% |
5,770 |
7.5 |
% |
5,534 |
7.1 |
% | |||||||||||
Total refining production (excluding internally produced fuel) |
75,373 |
100.0 |
% |
80,127 |
100.0 |
% |
76,909 |
100.0 |
% |
78,519 |
100.0 |
% | |||||||||||
Cost of product sold, direct operating expenses and selling, general and administrative expenses are all reflected exclusive of depreciation and amortization. | |||||||||||||||||||||||
* See "Use of Non-GAAP Financial Measures" below. |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization). Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of product sold exclusive of depreciation and amortization) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization) adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
Gross profit is calculated as the difference between net sales, cost of product sold (exclusive of depreciation and amortization), direct operating expenses (exclusive of depreciation and amortization), major scheduled turnaround expenses, flood insurance recovery and depreciation and amortization. Gross profit per crude throughput barrel is calculated as gross profit as derived above divided by our refineries' crude oil throughput volumes for the respective periods presented. Gross profit is a non-GAAP measure that should not be substituted for operating income. Management believes it is important to investors in evaluating our refineries' performance and our ongoing operating results. Our calculation of gross profit may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact, favorable; (ii) share-based compensation, non-cash; (iii) loss on extinguishment of debt; (iv) major scheduled turnaround expenses; (v) loss on derivatives, net, (vi) current period settlements on derivative contracts and (vii) flood insurance recovery. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA for the three and six months ended June 30, 2016 and 2015 is as follows:
Three Months Ended |
Six Months Ended | |||||||||||||||||||
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
Net income |
$ |
78.1 |
$ |
227.8 |
$ |
10.1 |
$ |
274.5 |
||||||||||||
Add: |
||||||||||||||||||||
Interest expense and other financing costs, net of interest income |
10.1 |
10.3 |
20.9 |
21.5 |
||||||||||||||||
Income tax expense |
— |
— |
— |
— |
||||||||||||||||
Depreciation and amortization |
31.6 |
34.2 |
63.1 |
68.2 |
||||||||||||||||
EBITDA |
119.8 |
272.3 |
94.1 |
364.2 |
||||||||||||||||
Add: |
||||||||||||||||||||
FIFO impact, favorable |
(46.2) |
(36.4) |
(37.4) |
(11.9) |
||||||||||||||||
Share-based compensation, non-cash |
— |
(0.1) |
— |
0.1 |
||||||||||||||||
Major scheduled turnaround expenses |
2.1 |
1.7 |
31.5 |
1.7 |
||||||||||||||||
Loss on derivatives, net |
1.9 |
12.6 |
3.1 |
64.0 |
||||||||||||||||
Current period settlements on derivative contracts(1) |
7.1 |
(28.5) |
28.5 |
(34.8) |
||||||||||||||||
Flood insurance recovery(2) |
— |
(27.3) |
— |
(27.3) |
||||||||||||||||
Adjusted EBITDA |
$ |
84.7 |
$ |
194.3 |
$ |
119.8 |
$ |
356.0 |
||||||||||||
(1) |
Represents the portion of loss on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. | |||||||||||||||||||
(2) |
Represents an insurance recovery from Coffeyville Resources Refining and Marketing, LLC's environmental insurance carriers as a result of the flood and crude oil discharge at the Coffeyville refinery on June/July 2007. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income or operating income as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and (iv) to the extent applicable, reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months June 30, 2016 |
Six Months Ended June 30, 2016 | ||||||
(in millions, except per unit data) | |||||||
Adjusted EBITDA |
$ |
84.7 |
$ |
119.8 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(20.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(40.0) |
(56.4) |
|||||
Reserves for major scheduled turnaround expenses |
(15.0) |
(23.7) |
|||||
Reserves for future operating needs |
(19.7) |
(19.7) |
|||||
Available cash for distribution |
$ |
— |
$ |
— |
|||
Available cash for distribution, per unit |
$ |
— |
$ |
— |
|||
Common units outstanding |
147.6 |
147.6 |
Q3 2016 Outlook. The table below summarizes our outlook for certain refining statistics for the third quarter of 2016. See "forward looking statements."
Q3 2016 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
190,000 |
205,000 |
|||
Total refining production (bpd) |
200,000 |
215,000 |
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, July 14, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2016 second quarter results and announce its cash distribution on Thursday, July 28, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on July 28 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/15906. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/15906. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13639901.
CVR Refining's 2016 second quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 340 miles of active owned and leased pipelines, more than 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, June 30, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that Magellan Midstream Partners, L.P. informed the company that its 8-inch refined petroleum products pipeline, which runs from Coffeyville to Kansas City, Kansas, will not return to full service for approximately three more weeks. Temporary measures have been implemented by Magellan to allow CVR Refining's Coffeyville refinery to partially increase rates, but it will continue to operate at reduced rates until the pipeline is fully restored.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks CVR Refining, LP (281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, June 7, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it has reduced production at its Coffeyville, Kansas, refinery due to Magellan Midstream Partners, L.P.'s temporary suspension of an 8-inch refined petroleum products pipeline that runs from Coffeyville to Kansas City, Kansas. The pipeline transports up to 30,000 barrels per day of refined products from the refinery. It is one of three pipelines that transport the refinery's products to the markets it serves.
Based on information provided by Magellan, CVR Refining anticipates that the pipeline suspension will limit the refinery's ability to ship products for up to four weeks.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, April 28, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced a net loss of $68.0 million on net sales of $834.0 million for the first quarter of 2016, compared to net income of $46.7 million on net sales of $1,304.4 million for the first quarter of 2015. Net income for the 2016 first quarter was negatively impacted by the downtime associated with the final phase of a major scheduled turnaround at the Coffeyville refinery.
Adjusted EBITDA, a non-GAAP financial measure, for the 2016 first quarter was $35.1 million compared to adjusted EBITDA of $161.7 million for the 2015 first quarter.
"Our first quarter 2016 results were impacted by the downtime associated with the final phase of the Coffeyville refinery turnaround as well as weak crack spreads," said Jack Lipinski, chief executive officer. "With the successful completion of the Coffeyville turnaround behind us, we are in position to take advantage of the increased demand for transportation fuels that typically occurs during the late spring and summer months."
Consolidated Operations
First quarter 2016 throughputs of crude oil and all other feedstocks and blendstocks totaled 195,859 barrels per day (bpd). Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 215,023 bpd for the same period in 2015.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $7.19 in the 2016 first quarter, compared to $15.03 during the same period in 2015. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold, exclusive of depreciation and amortization, for the 2016 first quarter were $6.40, compared to $4.44 in the first quarter of 2015.
Distributions
As a result of the downtime associated with the final phase of the Coffeyville turnaround and weak crack spreads during the 2016 first quarter, CVR Refining will not pay a cash distribution for the quarter.
CVR Refining is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, and other cash reserves deemed necessary or appropriate by the board of directors of its general partner.
First Quarter 2016 Earnings Conference Call
CVR Refining previously announced that it will host its first quarter 2016 Earnings Conference Call for analysts and investors on Thursday, April 28, 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 Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/14521. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/14521. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13634752.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately 6.4 million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
CVR Refining, LP | |||||||
Financial and Operational Data (all information in this release is unaudited except as otherwise noted). | |||||||
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
(in millions, except per unit data) | |||||||
Statement of Operations Data: |
|||||||
Net sales |
$ |
834.0 |
$ |
1,304.4 |
|||
Cost of product sold |
722.3 |
1,056.1 |
|||||
Direct operating expenses (1) |
117.7 |
87.0 |
|||||
Selling, general and administrative expenses |
18.5 |
18.1 |
|||||
Depreciation and amortization |
31.5 |
34.0 |
|||||
Operating income (loss) |
(56.0) |
109.2 |
|||||
Interest expense and other financing costs |
(10.8) |
(11.3) |
|||||
Interest income |
— |
0.1 |
|||||
Loss on derivatives, net |
(1.2) |
(51.4) |
|||||
Other income, net |
— |
0.1 |
|||||
Income (loss) before income tax expense |
(68.0) |
46.7 |
|||||
Income tax expense |
— |
— |
|||||
Net income (loss) |
$ |
(68.0) |
$ |
46.7 |
|||
Net income (loss) per common unit - basic |
$ |
(0.46) |
$ |
0.32 |
|||
Net income (loss) per common unit - diluted |
$ |
(0.46) |
$ |
0.32 |
|||
Adjusted EBITDA* |
$ |
35.1 |
$ |
161.7 |
|||
Available cash for distribution* |
$ |
— |
$ |
111.8 |
|||
Weighted average, number of common units outstanding: |
|||||||
Basic |
147.6 |
147.6 |
|||||
Diluted |
147.6 |
147.6 |
________________________________
* See "Use of Non-GAAP Financial Measures" below. |
(1) Direct operating expenses includes $29.4 million of major scheduled turnaround expenses during the three months ended March 31, 2016. |
As of March 31, 2016 |
As of December 31, 2015 | ||||||
(audited) | |||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
145.9 |
$ |
187.3 |
|||
Working capital (1) |
219.9 |
297.5 |
|||||
Total assets (1) |
2,116.9 |
2,189.0 |
|||||
Total debt, including current portion (1) |
573.6 |
573.8 |
|||||
Total partners' capital |
1,213.4 |
1,281.4 |
______________________________
(1) Prior period amounts have been retrospectively adjusted for Accounting Standard Update No. 2015-03, which requires that costs incurred to issue debt be presented in the balance sheet as a direct reduction from the carrying value of the debt. |
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
(in millions) | |||||||
Cash Flow Data: |
|||||||
Net cash flow provided by (used in): |
|||||||
Operating activities |
$ |
3.0 |
$ |
148.5 |
|||
Investing activities |
(44.0) |
(41.7) |
|||||
Financing activities |
(0.4) |
(54.9) |
|||||
Net cash flow |
$ |
(41.4) |
$ |
51.9 |
|||
Capital expenditures for property, plant and equipment |
$ |
44.0 |
$ |
41.7 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
Key Operating Statistics: |
|||||||
Per crude oil throughput barrel: |
|||||||
Refining margin* |
$ |
6.67 |
$ |
13.68 |
|||
FIFO impact, unfavorable |
0.52 |
1.35 |
|||||
Refining margin adjusted for FIFO impact* |
7.19 |
15.03 |
|||||
Gross profit (loss)* |
(2.24) |
7.02 |
|||||
Direct operating expenses and major scheduled turnaround expenses |
7.02 |
4.79 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.27 |
4.79 |
|||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
6.40 |
4.44 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.80 |
$ |
4.44 |
|||
Barrels sold (barrels per day) |
201,970 |
217,686 |
Three Months Ended March 31, | |||||||||||||
2016 |
2015 | ||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||
Throughput: |
|||||||||||||
Sweet |
170,728 |
87.2 |
% |
175,376 |
81.6 |
% | |||||||
Medium |
1,513 |
0.8 |
% |
6,630 |
3.1 |
% | |||||||
Heavy sour |
11,914 |
6.0 |
% |
19,658 |
9.1 |
% | |||||||
Total crude oil throughput |
184,155 |
94.0 |
% |
201,664 |
93.8 |
% | |||||||
All other feedstocks and blendstocks |
11,704 |
6.0 |
% |
13,359 |
6.2 |
% | |||||||
Total throughput |
195,859 |
100.0 |
% |
215,023 |
100.0 |
% | |||||||
Production: |
|||||||||||||
Gasoline |
105,878 |
54.2 |
% |
109,096 |
50.2 |
% | |||||||
Distillate |
77,996 |
39.9 |
% |
89,436 |
41.1 |
% | |||||||
Other (excluding internally produced fuel) |
11,519 |
5.9 |
% |
18,857 |
8.7 |
% | |||||||
Total refining production (excluding internally produced fuel) |
195,393 |
100.0 |
% |
217,389 |
100.0 |
% | |||||||
Product price (dollars per gallon): |
|||||||||||||
Gasoline |
$ |
1.04 |
$ |
1.48 |
|||||||||
Distillate |
1.05 |
1.69 |
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
Market Indicators (dollars per barrel): |
|||||||
West Texas Intermediate (WTI) NYMEX |
$ |
33.63 |
$ |
48.57 |
|||
Crude Oil Differentials: |
|||||||
WTI less WTS (light/medium sour) |
0.13 |
0.99 |
|||||
WTI less WCS (heavy sour) |
13.62 |
13.62 |
|||||
NYMEX Crack Spreads: |
|||||||
Gasoline |
15.84 |
18.54 |
|||||
Heating Oil |
11.91 |
27.06 |
|||||
NYMEX 2-1-1 Crack Spread |
13.88 |
22.80 |
|||||
PADD II Group 3 Basis: |
|||||||
Gasoline |
(5.88) |
(3.50) |
|||||
Ultra Low Sulfur Diesel |
(1.01) |
(4.52) |
|||||
PADD II Group 3 Product Crack Spread: |
|||||||
Gasoline |
9.97 |
15.04 |
|||||
Ultra Low Sulfur Diesel |
10.90 |
22.54 |
|||||
PADD II Group 3 2-1-1 |
10.43 |
18.79 |
Three Months Ended March 31, |
||||||||||||||
2016 |
2015 |
|||||||||||||
(in millions, except operating statistics) |
||||||||||||||
Coffeyville Refinery Financial Results: |
||||||||||||||
Net sales |
$ |
528.0 |
$ |
851.7 |
||||||||||
Cost of product sold |
462.7 |
700.9 |
||||||||||||
Refining margin* |
65.3 |
150.8 |
||||||||||||
Direct operating expenses |
47.6 |
50.4 |
||||||||||||
Major scheduled turnaround expenses |
29.4 |
— |
||||||||||||
Depreciation and amortization |
16.9 |
19.4 |
||||||||||||
Gross profit (loss)* |
$ |
(28.6) |
$ |
81.0 |
||||||||||
Refining margin adjusted for FIFO impact* |
$ |
69.2 |
$ |
169.2 |
||||||||||
Coffeyville Refinery Key Operating Statistics: |
||||||||||||||
Per crude oil throughput barrel: |
||||||||||||||
Refining margin* |
$ |
6.75 |
$ |
13.21 |
||||||||||
FIFO impact, unfavorable |
0.40 |
1.61 |
||||||||||||
Refining margin adjusted for FIFO impact* |
7.15 |
14.82 |
||||||||||||
Gross profit (loss)* |
(2.96) |
7.10 |
||||||||||||
Direct operating expenses and major scheduled turnaround expenses |
7.96 |
4.42 |
||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
4.92 |
4.42 |
||||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
6.89 |
3.97 |
||||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
4.26 |
$ |
3.97 |
||||||||||
Barrels sold (barrels per day) |
122,838 |
140,974 |
||||||||||||
Three Months Ended March 31, | ||||||||||||||
2016 |
2015 | |||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
||||||||||||||
Throughput: |
||||||||||||||
Sweet |
92,938 |
80.3 |
% |
100,532 |
73.4 |
% | ||||||||
Medium |
1,513 |
1.3 |
% |
6,630 |
4.8 |
% | ||||||||
Heavy sour |
11,914 |
10.3 |
% |
19,658 |
14.3 |
% | ||||||||
Total crude oil throughput |
106,365 |
91.9 |
% |
126,820 |
92.5 |
% | ||||||||
All other feedstocks and blendstocks |
9,344 |
8.1 |
% |
10,227 |
7.5 |
% | ||||||||
Total throughput |
115,709 |
100.0 |
% |
137,047 |
100.0 |
% | ||||||||
Production: |
||||||||||||||
Gasoline |
64,033 |
54.8 |
% |
67,853 |
48.3 |
% | ||||||||
Distillate |
47,147 |
40.3 |
% |
59,415 |
42.3 |
% | ||||||||
Other (excluding internally produced fuel) |
5,768 |
4.9 |
% |
13,228 |
9.4 |
% | ||||||||
Total refining production (excluding internally produced fuel) |
116,948 |
100.0 |
% |
140,496 |
100.0 |
% | ||||||||
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
(in millions, except operating statistics) | |||||||
Wynnewood Refinery Financial Results: |
|||||||
Net sales |
$ |
304.8 |
$ |
451.7 |
|||
Cost of product sold |
259.4 |
355.6 |
|||||
Refining margin* |
45.4 |
96.1 |
|||||
Direct operating expenses |
40.6 |
36.6 |
|||||
Major scheduled turnaround expenses |
— |
— |
|||||
Depreciation and amortization |
12.7 |
12.5 |
|||||
Gross profit (loss)* |
$ |
(7.9) |
$ |
47.0 |
|||
Refining margin adjusted for FIFO impact* |
$ |
50.2 |
$ |
102.2 |
|||
Wynnewood Refinery Key Operating Statistics: |
|||||||
Per crude oil throughput barrel: |
|||||||
Refining margin* |
$ |
6.41 |
$ |
14.27 |
|||
FIFO impact, unfavorable |
0.68 |
0.91 |
|||||
Refining margin adjusted for FIFO impact* |
7.09 |
15.18 |
|||||
Gross profit (loss)* |
(1.11) |
6.98 |
|||||
Direct operating expenses and major scheduled turnaround expenses |
5.74 |
5.43 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses |
5.74 |
5.43 |
|||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
5.64 |
5.30 |
|||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
5.64 |
$ |
5.30 |
|||
Barrels sold (barrels per day) |
79,132 |
76,712 |
Three Months Ended March 31, | |||||||||||
2016 |
2015 | ||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||
Throughput: |
|||||||||||
Sweet |
77,790 |
97.1 |
% |
74,844 |
96.0 |
% | |||||
Medium |
— |
— |
% |
— |
— |
% | |||||
Heavy sour |
— |
— |
% |
— |
— |
% | |||||
Total crude oil throughput |
77,790 |
97.1 |
% |
74,844 |
96.0 |
% | |||||
All other feedstocks and blendstocks |
2,360 |
2.9 |
% |
3,132 |
4.0 |
% | |||||
Total throughput |
80,150 |
100.0 |
% |
77,976 |
100.0 |
% | |||||
Production: |
|||||||||||
Gasoline |
41,845 |
53.4 |
% |
41,243 |
53.7 |
% | |||||
Distillate |
30,849 |
39.3 |
% |
30,021 |
39.0 |
% | |||||
Other (excluding internally produced fuel) |
5,751 |
7.3 |
% |
5,629 |
7.3 |
% | |||||
Total refining production (excluding internally produced fuel) |
78,445 |
100.0 |
% |
76,893 |
100.0 |
% |
______________________________
Cost of product sold, direct operating expenses and selling, general and administrative expenses are all reflected exclusive of depreciation and amortization. |
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization). Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of product sold exclusive of depreciation and amortization) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization) adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
Gross profit (loss) is calculated as the difference between net sales, cost of product sold (exclusive of depreciation and amortization), direct operating expenses (exclusive of depreciation and amortization), major scheduled turnaround expenses, and depreciation and amortization. Gross profit (loss) per crude throughput barrel is calculated as gross profit (loss) as derived above divided by our refineries' crude oil throughput volumes for the respective periods presented. Gross profit (loss) is a non-GAAP measure that should not be substituted for operating income. Management believes it is important to investors in evaluating our refineries' performance and our ongoing operating results. Our calculation of gross profit (loss) may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact (favorable) unfavorable; (ii) share-based compensation, non-cash; (iii) loss on extinguishment of debt; (iv) major scheduled turnaround expenses; (v) (gain) loss on derivatives, net, and (vi) current period settlements on derivative contracts. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently.
A reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three months ended March 31, 2016 and 2015 is as follows:
Three Months Ended March 31, | |||||||
2016 |
2015 | ||||||
(in millions) | |||||||
Net income (loss) |
$ |
(68.0) |
$ |
46.7 |
|||
Add: |
|||||||
Interest expense and other financing costs, net of interest income |
10.8 |
11.2 |
|||||
Income tax expense |
— |
— |
|||||
Depreciation and amortization |
31.5 |
34.0 |
|||||
EBITDA |
(25.7) |
91.9 |
|||||
Add: |
|||||||
FIFO impact, unfavorable |
8.8 |
24.5 |
|||||
Share-based compensation, non-cash |
— |
0.2 |
|||||
Major scheduled turnaround expenses |
29.4 |
— |
|||||
Loss on derivatives, net |
1.2 |
51.4 |
|||||
Current period settlements on derivative contracts(1) |
21.4 |
(6.3) |
|||||
Adjusted EBITDA |
$ |
35.1 |
$ |
161.7 |
_________________________
(1) Represents the portion of gain (loss) on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income (loss) or operating income as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
Available cash begins with Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and, to the extent applicable, (iv) reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
A reconciliation of Adjusted EBITDA to Available cash for distribution is as follows:
Three Months Ended March 31, 2016 | |||
(in millions, except per unit data) | |||
Adjusted EBITDA |
$ |
35.1 |
|
Adjustments: |
|||
Less: |
|||
Cash needs for debt service |
(10.0) |
||
Reserves for environmental and maintenance capital expenditures |
(16.4) |
||
Reserves for major scheduled turnaround expenses |
(8.7) |
||
Available cash for distribution |
$ |
— |
|
Available cash for distribution, per unit |
$ |
— |
|
Common units outstanding (in thousands) |
147,600 |
Q2 2016 Outlook. The table below summarizes our outlook for certain refining statistics for the second quarter of 2016. See "forward looking statements."
Q2 2016 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
190,000 |
205,000 | |||
Total refining production (bpd) |
200,000 |
215,000 |
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, April 14, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2016 first quarter results and announce its cash distribution on Thursday, April 28, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on April 28 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/14521. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/14521. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13634752.
CVR Refining's 2016 first quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, more than 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately seven million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 19, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it has filed its annual report on Form 10-K for the fiscal year ended Dec. 31, 2015, with the Securities and Exchange Commission.
The annual report on Form 10-K is available free of charge through the Investor Relations link on the CVR Refining website at www.cvrrefining.com. Unitholders may also receive a hard copy of the annual report on Form 10-K, which includes the audited financial statements, free of charge upon request. Please send requests to the following address:
CVR Refining, LP
Attn: Investor Services
2277 Plaza Drive, Suite 500
Sugar Land, Texas 77479
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately seven million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 18, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced net income of $291.2 million on net sales of $5,161.9 million for full year 2015, compared to net income of $358.7 million on net sales of $8,829.7 million for full year 2014. Adjusted EBITDA, a non-GAAP financial measure, for full year 2015 was $602.0 million, compared to adjusted EBITDA of $621.6 million for the previous year.
For the fourth quarter of 2015, the company reported a net loss of $122.2 million on net sales of $948.3 million, compared to a net loss of $108.5 million on net sales of $1,772.8 million for the fourth quarter of 2014. Net income for the 2015 fourth quarter was negatively impacted by the downtime associated with a major scheduled turnaround at the Coffeyville refinery.
Fourth quarter 2015 adjusted EBITDA was $16.4 million compared to adjusted EBITDA of $104.6 million for the 2014 fourth quarter.
"As expected, our fourth quarter results were impacted by the downtime associated with the scheduled turnaround at the Coffeyville refinery as well as narrowing crack spreads," said Jack Lipinski, chief executive officer.
Consolidated Operations
Fourth quarter 2015 throughputs of crude oil and all other feedstocks and blendstocks totaled 172,364 barrels per day (bpd). Throughputs of crude oil and all other feedstocks and blendstocks for both refineries totaled 212,263 bpd for the same period in 2014.
Refining margin adjusted for FIFO impact per crude oil throughput barrel, a non-GAAP financial measure, was $8.96 in the 2015 fourth quarter, compared to $11.28 during the same period in 2014. Direct operating expenses, including major scheduled turnaround expenses, per barrel sold, exclusive of depreciation and amortization, for the 2015 fourth quarter were $12.34, compared to $5.76 in the fourth quarter of 2014.
Distributions
As a result of the downtime associated with the Coffeyville turnaround and narrowing crack spreads during the 2015 fourth quarter, CVR Refining will not pay a cash distribution for the quarter. CVR Refining's cumulative cash distributions paid or declared for the 2015 full year were $2.75 per common unit.
CVR Refining, LP is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices paid for crude oil and other feedstocks, as well as the prices received for finished products, and other cash reserves deemed necessary or appropriate by the board of directors of its general partner.
Fourth Quarter 2015 Earnings Conference Call
CVR Refining previously announced that it will host its fourth quarter 2015 Earnings Conference Call for analysts and investors on Thursday, Feb. 18, 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 Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/13079. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/13079. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13629394.
Forward-Looking Statements
This news release contains forward-looking statements. You can generally identify forward-looking statements by our use of forward-looking terminology such as "outlook," "anticipate," "believe," "continue," "could," "estimate," "expect," "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. For a 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 SEC filings. These 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 press release are made only as of the date hereof. CVR Refining disclaims any intention or obligation to update publicly or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately seven million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contacts:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
CVR Refining, LP |
Financial and Operational Data (all information in this release is unaudited other than the statement of operations and cash flow data for the year ended December 31, 2014 and the balance sheet data as of December 31, 2014). |
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(in millions, except per unit data) | |||||||||||||||
Statement of Operations Data: |
|||||||||||||||
Net sales |
$ |
948.3 |
$ |
1,772.8 |
$ |
5,161.9 |
$ |
8,829.7 |
|||||||
Cost of product sold |
842.8 |
1,723.8 |
4,143.6 |
8,013.4 |
|||||||||||
Direct operating expenses |
188.7 |
112.9 |
478.5 |
416.0 |
|||||||||||
Flood insurance recovery |
— |
— |
(27.3) |
— |
|||||||||||
Selling, general and administrative expenses |
20.2 |
16.8 |
75.2 |
70.6 |
|||||||||||
Depreciation and amortization |
32.1 |
32.6 |
130.2 |
122.5 |
|||||||||||
Operating income (loss) |
(135.5) |
(113.3) |
361.7 |
207.2 |
|||||||||||
Interest expense and other financing costs |
(10.5) |
(9.7) |
(42.6) |
(34.2) |
|||||||||||
Interest income |
0.1 |
0.1 |
0.4 |
0.3 |
|||||||||||
Gain (loss) on derivatives, net |
23.6 |
14.5 |
(28.6) |
185.6 |
|||||||||||
Other income (expense), net |
0.1 |
(0.1) |
0.3 |
(0.2) |
|||||||||||
Income (loss) before income tax expense |
(122.2) |
(108.5) |
291.2 |
358.7 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Net income (loss) |
$ |
(122.2) |
$ |
(108.5) |
$ |
291.2 |
$ |
358.7 |
|||||||
Net income (loss) per common unit - basic |
$ |
(0.83) |
$ |
(0.73) |
$ |
1.97 |
$ |
2.43 |
|||||||
Net income (loss) per common unit - diluted |
$ |
(0.83) |
$ |
(0.73) |
$ |
1.97 |
$ |
2.43 |
|||||||
Adjusted EBITDA* |
$ |
16.4 |
$ |
104.6 |
$ |
602.0 |
$ |
621.6 |
|||||||
Available cash for distribution* |
$ |
(3.7) |
$ |
54.7 |
$ |
402.0 |
$ |
421.5 |
|||||||
Weighted average, number of common units outstanding (in thousands): |
|||||||||||||||
Basic |
147,600 |
147,600 |
147,600 |
147,600 |
|||||||||||
Diluted |
147,600 |
147,600 |
147,600 |
147,600 |
* See "Use of Non-GAAP Financial Measures" below. |
As of December 31, 2015 |
As of December 31, 2014 | ||||||
(in millions) | |||||||
Balance Sheet Data: |
|||||||
Cash and cash equivalents |
$ |
187.3 |
$ |
370.2 |
|||
Working capital |
298.4 |
504.5 |
|||||
Total assets |
2,195.2 |
2,417.8 |
|||||
Total debt, including current portion |
580.0 |
581.4 |
|||||
Total partners' capital |
1,281.4 |
1,450.1 |
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: |
|||||||||||||||
Net cash flow provided by (used in): |
|||||||||||||||
Operating activities |
$ |
(93.2) |
$ |
128.1 |
$ |
473.7 |
$ |
715.8 |
|||||||
Investing activities |
(71.2) |
(37.1) |
(194.7) |
(191.2) |
|||||||||||
Financing activities |
(149.4) |
(80.0) |
(461.9) |
(434.2) |
|||||||||||
Net cash flow |
$ |
(313.8) |
$ |
11.0 |
$ |
(182.9) |
$ |
90.4 |
|||||||
Capital expenditures for property, plant and equipment |
$ |
71.1 |
$ |
37.1 |
$ |
194.7 |
$ |
191.3 |
Operating Data
The following tables set forth information about our consolidated operations and our Coffeyville and Wynnewood refineries. Reconciliations of certain non-GAAP financial measures are provided under "Use of Non-GAAP Financial Measures" below.
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Refining margin* |
$ |
7.16 |
$ |
2.71 |
$ |
14.45 |
$ |
11.38 |
|||||||
FIFO impact (favorable) unfavorable |
1.80 |
8.57 |
0.86 |
2.24 |
|||||||||||
Refining margin adjusted for FIFO impact* |
8.96 |
11.28 |
15.31 |
13.62 |
|||||||||||
Gross profit (loss)* |
(7.82) |
(5.35) |
6.20 |
3.87 |
|||||||||||
Gross profit (loss) excluding flood insurance recovery* |
(7.82) |
(5.35) |
5.81 |
3.87 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
12.81 |
6.26 |
6.79 |
5.80 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
7.04 |
6.19 |
5.34 |
5.70 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
12.34 |
5.76 |
6.40 |
5.44 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
6.79 |
$ |
5.69 |
$ |
5.04 |
$ |
5.35 |
|||||||
Barrels sold (barrels per day) |
166,168 |
213,256 |
204,708 |
209,669 |
Three Months Ended |
Year Ended | ||||||||||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||||||
Refining Throughput and Production Data (bpd): |
|||||||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||||||
Sweet |
151,215 |
87.7% |
181,063 |
85.3% |
176,097 |
86.0% |
179,059 |
86.2% | |||||||||||||||||||
Medium |
209 |
0.1% |
3,383 |
1.6% |
2,460 |
1.2% |
2,022 |
1.0% | |||||||||||||||||||
Heavy sour |
8,715 |
5.1% |
11,700 |
5.5% |
14,520 |
7.1% |
15,464 |
7.4% | |||||||||||||||||||
Total crude oil throughput |
160,139 |
92.9% |
196,146 |
92.4% |
193,077 |
94.3% |
196,545 |
94.6% | |||||||||||||||||||
All other feedstocks and blendstocks |
12,225 |
7.1% |
16,117 |
7.6% |
11,672 |
5.7% |
11,284 |
5.4% | |||||||||||||||||||
Total throughput |
172,364 |
100.0% |
212,263 |
100.0% |
204,749 |
100.0% |
207,829 |
100.0% | |||||||||||||||||||
Production: |
|||||||||||||||||||||||||||
Gasoline |
80,111 |
46.3% |
107,158 |
50.1% |
99,961 |
48.5% |
102,275 |
48.9% | |||||||||||||||||||
Distillate |
70,201 |
40.6% |
88,119 |
41.2% |
85,953 |
41.7% |
87,639 |
41.9% | |||||||||||||||||||
Other (excluding internally produced fuel) |
22,638 |
13.1% |
18,526 |
8.7% |
20,074 |
9.8% |
19,149 |
9.2% | |||||||||||||||||||
Total refining production (excluding internally produced fuel) |
172,950 |
100.0% |
213,803 |
100.0% |
205,988 |
100.0% |
209,063 |
100.0% | |||||||||||||||||||
Product price (dollars per gallon): |
|||||||||||||||||||||||||||
Gasoline |
$ |
1.32 |
$ |
1.93 |
$ |
1.61 |
$ |
2.53 |
|||||||||||||||||||
Distillate |
1.34 |
2.40 |
1.62 |
2.81 |
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
Market Indicators (dollars per barrel): |
|||||||||||||||
West Texas Intermediate (WTI) NYMEX |
$ |
42.16 |
$ |
73.20 |
$ |
48.76 |
$ |
92.91 |
|||||||
Crude Oil Differentials: |
|||||||||||||||
WTI less WTS (light/medium sour) |
0.35 |
2.19 |
(0.28) |
5.95 |
|||||||||||
WTI less WCS (heavy sour) |
14.45 |
15.42 |
13.20 |
18.48 |
|||||||||||
NYMEX Crack Spreads: |
|||||||||||||||
Gasoline |
12.79 |
9.83 |
19.89 |
17.29 |
|||||||||||
Heating Oil |
15.21 |
24.12 |
20.93 |
23.59 |
|||||||||||
NYMEX 2-1-1 Crack Spread |
14.00 |
16.97 |
20.41 |
20.44 |
|||||||||||
PADD II Group 3 Product Basis: |
|||||||||||||||
Gasoline |
0.26 |
(2.92) |
(2.12) |
(4.45) |
|||||||||||
Ultra Low Sulfur Diesel |
(0.44) |
3.51 |
(2.02) |
0.75 |
|||||||||||
PADD II Group 3 Product Crack Spread: |
|||||||||||||||
Gasoline |
13.05 |
6.91 |
17.76 |
12.84 |
|||||||||||
Ultra Low Sulfur Diesel |
14.76 |
27.63 |
18.91 |
24.34 |
|||||||||||
PADD II Group 3 2-1-1 |
13.91 |
17.27 |
18.34 |
18.59 |
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
522.6 |
$ |
1,214.2 |
$ |
3,220.6 |
$ |
5,755.5 |
|||||||
Cost of product sold |
490.5 |
1,186.3 |
2,626.1 |
5,254.9 |
|||||||||||
Refining margin* |
32.1 |
27.9 |
594.5 |
500.6 |
|||||||||||
Direct operating expenses |
53.5 |
54.4 |
209.1 |
223.6 |
|||||||||||
Major scheduled turnaround expenses |
84.9 |
— |
102.2 |
5.5 |
|||||||||||
Flood insurance recovery |
— |
— |
(27.3) |
— |
|||||||||||
Depreciation and amortization |
17.5 |
19.2 |
72.1 |
73.6 |
|||||||||||
Gross profit (loss)* |
$ |
(123.8) |
$ |
(45.7) |
$ |
238.4 |
$ |
197.9 |
|||||||
Refining margin adjusted for FIFO impact* |
$ |
49.5 |
$ |
139.7 |
$ |
632.5 |
$ |
615.8 |
|||||||
Coffeyville Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Refining margin* |
$ |
4.52 |
$ |
2.39 |
$ |
14.37 |
$ |
11.46 |
|||||||
FIFO impact (favorable) unfavorable |
2.45 |
9.58 |
0.92 |
2.64 |
|||||||||||
Refining margin adjusted for FIFO impact* |
6.97 |
11.97 |
15.29 |
14.10 |
|||||||||||
Gross profit (loss)* |
(17.42) |
(3.91) |
5.77 |
4.53 |
|||||||||||
Gross profit (loss) excluding flood insurance recovery* |
(17.42) |
(3.91) |
5.11 |
4.53 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
19.48 |
4.66 |
7.53 |
5.24 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
7.53 |
4.66 |
5.06 |
5.12 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
18.46 |
4.10 |
6.92 |
4.73 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
7.14 |
$ |
4.10 |
$ |
4.65 |
$ |
4.61 |
|||||||
Barrels sold (barrels per day) |
81,484 |
144,151 |
123,279 |
132,791 |
Three Months Ended |
Year Ended | ||||||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
68,452 |
80.7% |
111,791 |
80.2% |
96,727 |
79.5% |
103,018 |
80.0% | |||||||||||||||
Medium |
57 |
0.1% |
3,383 |
2.4% |
2,058 |
1.7% |
1,222 |
1.0% | |||||||||||||||
Heavy sour |
8,715 |
10.3% |
11,700 |
8.4% |
14,520 |
11.9% |
15,464 |
12.0% | |||||||||||||||
Total crude oil throughput |
77,224 |
91.1% |
126,874 |
91.0% |
113,305 |
93.1% |
119,704 |
93.0% | |||||||||||||||
All other feedstocks and blendstocks |
7,540 |
8.9% |
12,510 |
9.0% |
8,400 |
6.9% |
9,047 |
7.0% | |||||||||||||||
Total throughput |
84,764 |
100.0% |
139,384 |
100.0% |
121,705 |
100.0% |
128,751 |
100.0% | |||||||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
36,493 |
42.1% |
71,045 |
49.8% |
57,815 |
46.5% |
64,002 |
48.6% | |||||||||||||||
Distillate |
35,588 |
41.0% |
60,448 |
42.4% |
53,136 |
42.7% |
56,381 |
42.8% | |||||||||||||||
Other (excluding internally produced fuel) |
14,655 |
16.9% |
11,206 |
7.8% |
13,503 |
10.8% |
11,314 |
8.6% | |||||||||||||||
Total refining production (excluding internally produced fuel) |
86,736 |
100.0% |
142,699 |
100.0% |
124,454 |
100.0% |
131,697 |
100.0% |
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: |
|||||||||||||||
Net sales |
$ |
424.6 |
$ |
557.5 |
$ |
1,936.9 |
$ |
3,069.8 |
|||||||
Cost of product sold |
351.8 |
537.1 |
1,516.3 |
2,758.1 |
|||||||||||
Refining margin* |
72.8 |
20.4 |
420.6 |
311.7 |
|||||||||||
Direct operating expenses |
49.2 |
57.1 |
166.2 |
185.5 |
|||||||||||
Major scheduled turnaround expenses |
— |
1.3 |
— |
1.3 |
|||||||||||
Depreciation and amortization |
12.6 |
11.5 |
50.2 |
41.8 |
|||||||||||
Gross profit (loss)* |
$ |
11.0 |
$ |
(49.5) |
$ |
204.2 |
$ |
83.1 |
|||||||
Refining margin adjusted for FIFO impact* |
$ |
82.0 |
$ |
63.2 |
$ |
442.9 |
$ |
357.3 |
|||||||
Wynnewood Refinery Key Operating Statistics: |
|||||||||||||||
Per crude oil throughput barrel: |
|||||||||||||||
Refining margin* |
$ |
9.54 |
$ |
3.20 |
$ |
14.44 |
$ |
11.11 |
|||||||
FIFO impact (favorable) unfavorable |
1.20 |
6.72 |
0.77 |
1.63 |
|||||||||||
Refining margin adjusted for FIFO impact* |
10.74 |
9.92 |
15.21 |
12.74 |
|||||||||||
Gross profit (loss)* |
1.44 |
(7.78) |
7.01 |
2.96 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses |
6.44 |
9.17 |
5.71 |
6.66 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses |
6.44 |
8.96 |
5.71 |
6.61 |
|||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold |
6.31 |
9.19 |
5.59 |
6.66 |
|||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold |
$ |
6.31 |
$ |
8.98 |
$ |
5.59 |
$ |
6.61 |
|||||||
Barrels sold (barrels per day) |
84,684 |
69,105 |
81,429 |
76,878 |
Three Months Ended |
Year Ended | ||||||||||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): |
|||||||||||||||||||||||
Throughput: |
|||||||||||||||||||||||
Sweet |
82,763 |
94.5% |
69,272 |
95.1% |
79,370 |
95.6% |
76,041 |
96.2% | |||||||||||||||
Medium |
152 |
0.2% |
— |
—% |
402 |
0.5% |
800 |
1.0% | |||||||||||||||
Heavy sour |
— |
—% |
— |
—% |
— |
—% |
— |
—% | |||||||||||||||
Total crude oil throughput |
82,915 |
94.7% |
69,272 |
95.1% |
79,772 |
96.1% |
76,841 |
97.2% | |||||||||||||||
All other feedstocks and blendstocks |
4,685 |
5.3% |
3,607 |
4.9% |
3,272 |
3.9% |
2,237 |
2.8% | |||||||||||||||
Total throughput |
87,600 |
100.0% |
72,879 |
100.0% |
83,044 |
100.0% |
79,078 |
100.0% | |||||||||||||||
Production: |
|||||||||||||||||||||||
Gasoline |
43,618 |
50.6% |
36,113 |
50.8% |
42,146 |
51.7% |
38,273 |
49.5% | |||||||||||||||
Distillate |
34,613 |
40.1% |
27,671 |
38.9% |
32,817 |
40.2% |
31,258 |
40.4% | |||||||||||||||
Other (excluding internally produced fuel) |
7,983 |
9.3% |
7,320 |
10.3% |
6,571 |
8.1% |
7,835 |
10.1% | |||||||||||||||
Total refining production (excluding internally produced fuel) |
86,214 |
100.0% |
71,104 |
100.0% |
81,534 |
100.0% |
77,366 |
100.0% |
Cost of product sold, direct operating expenses and selling, general and administrative expenses are all reflected exclusive of depreciation and amortization.
Use of Non-GAAP Financial Measures
To supplement our actual results in accordance with GAAP for the applicable periods, the Partnership also uses the non-GAAP financial measures noted above, which are reconciled to our GAAP-based results below. These non-GAAP financial measures should not be considered an alternative for GAAP results. The adjustments are provided to enhance an overall understanding of the Partnership's financial performance for the applicable periods and are indicators management believes are relevant and useful for planning and forecasting future periods.
Refining margin per crude oil throughput barrel is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization). Refining margin is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold at which we are able to sell refined products. Each of the components used in this calculation (net sales and cost of product sold exclusive of depreciation and amortization) can be taken directly from our Statements of Operations. Our calculation of refining margin may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. In order to derive the refining margin per crude oil throughput barrel, we utilize the total dollar figures for refining margin as derived above and divide by the applicable number of crude oil throughput barrels for the period. We believe that refining margin is important to enable investors to better understand and evaluate our ongoing operating results and allow for greater transparency in the review of our overall financial, operational and economic performance.
Refining margin per crude oil throughput barrel adjusted for FIFO impact is a measurement calculated as the difference between net sales and cost of product sold (exclusive of depreciation and amortization) adjusted for FIFO impact. Refining margin adjusted for FIFO impact is a non-GAAP measure that we believe is important to investors in evaluating our refineries' performance as a general indication of the amount above our cost of product sold (taking into account the impact of our utilization of FIFO) at which we are able to sell refined products. Our calculation of refining margin adjusted for FIFO impact may differ from calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure. Under our FIFO accounting method, changes in crude oil prices can cause fluctuations in the inventory valuation of our crude oil, work in process and finished goods, thereby resulting in a favorable FIFO impact when crude oil prices increase and an unfavorable FIFO impact when crude oil prices decrease.
Gross profit (loss) is calculated as the difference between net sales, cost of product sold (exclusive of depreciation and amortization), direct operating expenses (exclusive of depreciation and amortization), major scheduled turnaround expenses, flood insurance recovery and depreciation and amortization. Gross profit (loss) per crude throughput barrel is calculated as gross profit (loss) as derived above divided by our refineries' crude oil throughput volumes for the respective periods presented. Gross profit (loss) is a non-GAAP measure that should not be substituted for operating income (loss). Management believes it is important to investors in evaluating our refineries' performance and our ongoing operating results. Our calculation of gross profit (loss) may differ from similar calculations of other companies in our industry, thereby limiting its usefulness as a comparative measure.
EBITDA and Adjusted EBITDA. EBITDA represents net income (loss) before (i) interest expense and other financing costs, net of interest income, (ii) income tax expense and (iii) depreciation and amortization. Adjusted EBITDA represents EBITDA adjusted for (i) FIFO impact (favorable) unfavorable; (ii) share-based compensation, non-cash; (iii) loss on extinguishment of debt; (iv) major scheduled turnaround expenses; (v) (gain) loss on derivatives, net; (vi) current period settlements on derivative contracts and (vii) flood insurance recovery. We present Adjusted EBITDA because it is the starting point for our calculation of available cash for distribution. EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be substituted for net income (loss) or cash flow from operations. Management believes that EBITDA and Adjusted EBITDA enable investors to better understand our ability to make distributions to our common unitholders, help investors evaluate our ongoing operating results and allow for greater transparency in reviewing our overall financial, operational and economic performance. EBITDA and Adjusted EBITDA presented by other companies may not be comparable to our presentation, since each company may define these terms differently. Below is a reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA for the three months and years ended December 31, 2015 and 2014:
Three Months Ended |
Year Ended | ||||||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||||||
(in millions) | |||||||||||||||
Net income (loss) |
$ |
(122.2) |
$ |
(108.5) |
$ |
291.2 |
$ |
358.7 |
|||||||
Add: |
|||||||||||||||
Interest expense and other financing costs, net of interest income |
10.4 |
9.6 |
42.2 |
33.9 |
|||||||||||
Income tax expense |
— |
— |
— |
— |
|||||||||||
Depreciation and amortization |
32.1 |
32.6 |
130.2 |
122.5 |
|||||||||||
EBITDA |
(79.7) |
(66.3) |
463.6 |
515.1 |
|||||||||||
Add: |
|||||||||||||||
FIFO impact (favorable) unfavorable |
26.6 |
154.6 |
60.3 |
160.8 |
|||||||||||
Share-based compensation, non-cash |
0.1 |
0.5 |
0.6 |
2.3 |
|||||||||||
Major scheduled turnaround expenses |
84.9 |
1.3 |
102.2 |
6.8 |
|||||||||||
(Gain) loss on derivatives, net |
(23.6) |
(14.5) |
28.6 |
(185.6) |
|||||||||||
Current period settlements on derivative contracts(1) |
8.1 |
29.0 |
(26.0) |
122.2 |
|||||||||||
Flood insurance recovery(2) |
— |
— |
(27.3) |
— |
|||||||||||
Adjusted EBITDA |
$ |
16.4 |
$ |
104.6 |
$ |
602.0 |
$ |
621.6 |
|||||||
(1) |
Represents the portion of gain (loss) on derivatives, net related to contracts that matured during the respective periods and settled with counterparties. There are no premiums paid or received at inception of the derivative contracts and upon settlement, there is no cost recovery associated with these contracts. |
(2) |
Represents an insurance recovery from Coffeyville Resources Refining and Marketing, LLC's environmental insurance carriers as a result of the flood and crude oil discharge at the Coffeyville refinery on June/July 2007. |
Available cash for distribution is not a recognized term under GAAP. Available cash should not be considered in isolation or as an alternative to net income (loss) or operating income (loss) as a measure of operating performance. In addition, available cash for distribution is not presented as, and should not be considered, an alternative to cash flows from operations or as a measure of liquidity. Available cash as reported by the Partnership may not be comparable to similarly titled measures of other entities, thereby limiting its usefulness as a comparative measure.
The Partnership's available cash equaled Adjusted EBITDA reduced for cash needed for (i) debt service; (ii) reserves for environmental and maintenance capital expenditures; (iii) reserves for major scheduled turnaround expenses and, to the extent applicable, (iv) reserves for future operating or capital needs that the board of directors of our general partner deems necessary or appropriate, if any. Available cash for distribution may be increased by the release of previously established cash reserves, if any, and other excess cash, at the discretion of the board of directors of our general partner. Actual distributions are set by the board of directors of our general partner. The board of directors of our general partner may modify our cash distribution policy at any time, and our partnership agreement does not require us to make distributions at all.
Three Months Ended |
Year Ended | ||||||
(in millions, except per unit data) | |||||||
Reconciliation of Adjusted EBITDA to Available cash for distribution |
|||||||
Adjusted EBITDA |
$ |
16.4 |
$ |
602.0 |
|||
Adjustments: |
|||||||
Less: |
|||||||
Cash needs for debt service |
(10.0) |
(40.0) |
|||||
Reserves for environmental and maintenance capital expenditures |
(31.3) |
(125.0) |
|||||
Reserves for major scheduled turnaround expenses |
(8.8) |
(35.0) |
|||||
Reserves for future operating needs |
— |
(30.0) |
|||||
Add: |
|||||||
Release of previously established cash reserves |
30.0 |
30.0 |
|||||
Available cash for distribution |
$ |
(3.7) |
$ |
402.0 |
|||
Available cash for distribution, per unit |
$ |
(0.03) |
$ |
2.72 |
|||
Distribution declared, per unit |
$ |
— |
$ |
2.75 |
|||
Common units outstanding (in thousands) |
147,600 |
147,600 |
Derivatives Summary. The Partnership enters into commodity swap contracts through crack spread swap agreements with financial counterparties to fix the spread risk between the crude oil the Partnership purchases and the refined products the refineries produce for sale. Through these swaps, the Partnership will sell a fixed differential for the value between the selected refined product benchmark and the benchmark crude oil price, thereby locking in a margin for a portion of the refineries' production. The physical volumes are not exchanged and these contracts are net settled with cash. From time to time, the Partnership holds various NYMEX positions through a third-party clearing house.
The table below summarizes our open commodity swap positions as of December 31, 2015. The positions are primarily in the form of crack spread swap agreements with financial counterparties, wherein the Partnership has locked in differentials at the fixed prices noted below. As of December 31, 2015 the open commodity swap positions below were comprised of 100.0% distillate crack swaps.
Commodity Swaps |
Barrels |
Fixed Price(1) | |||||
First Quarter 2016 |
615,000 |
$ |
29.01 |
||||
Second Quarter 2016 |
615,000 |
29.01 |
|||||
Third Quarter 2016 |
615,000 |
29.01 |
|||||
Fourth Quarter 2016 |
615,000 |
29.01 |
|||||
Total |
2,460,000 |
$ |
29.01 |
(1) |
Weighted-average price of all positions for period indicated. |
Q1 2016 Outlook. The table below summarizes our outlook for certain refining statistics for the first quarter of 2016. See "forward looking statements."
Q1 2016 | |||||
Low |
High | ||||
Refinery Statistics: |
|||||
Total crude oil throughput (bpd) |
170,000 |
180,000 |
|||
Total refining production (bpd) |
180,000 |
195,000 |
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
SUGAR LAND, Texas, Feb. 4, 2016 /PRNewswire/ -- CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum fuels, today announced that it will release its 2015 fourth quarter results and announce its cash distribution on Thursday, Feb. 18, before the open of New York Stock Exchange trading. Chief Executive Officer Jack Lipinski and other executives will host a teleconference call for analysts and investors on Feb. 18 at 1 p.m. Eastern.
The Earnings Conference Call will be broadcast live over the Internet at https://www.webcaster4.com/Webcast/Page/1005/13079. For investors or analysts who want to participate during the call, the dial-in number is (877) 407-8289.
For those unable to listen live, the Webcast will be archived and available for 14 days at https://www.webcaster4.com/Webcast/Page/1005/13079. A repeat of the conference call can be accessed by dialing (877) 660-6853, conference ID 13629394.
CVR Refining's 2015 fourth quarter earnings news release will be distributed via PR Newswire and posted at www.CVRRefining.com.
About CVR Refining, LP
Headquartered in Sugar Land, Texas, CVR Refining, LP is an independent downstream energy limited partnership that owns refining and related logistics assets in the Midcontinent United States. CVR Refining's subsidiaries operate a complex full coking medium-sour crude oil refinery with a rated capacity of 115,000 barrels per calendar day (bpcd) in Coffeyville, Kansas, and a complex crude oil refinery with a rated capacity of 70,000 bpcd in Wynnewood, Oklahoma. CVR Refining's subsidiaries also operate supporting logistics assets including approximately 336 miles of active owned and leased pipelines, more than 150 crude oil transports, a network of strategically located crude oil gathering tank farms, and approximately seven million barrels of owned and leased crude oil storage capacity.
For further information, please contact:
Investor Contact:
Jay Finks
CVR Refining, LP
(281) 207-3588
IR@CVRRefining.com
Media Relations:
Angie Dasbach
CVR Refining, LP
(281) 207-3550
MediaRelations@CVRRefining.com
Logo - http://photos.prnewswire.com/prnh/20130128/MM49874LOGO
SOURCE CVR Refining, LP
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