Delaware | 1-9516 | 13-3398766 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
767 Fifth Avenue, Suite 4700, New York, NY 10153 |
(Address of Principal Executive Offices) (Zip Code) |
o | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ICAHN ENTERPRISES L.P. | |||
(Registrant) | |||
By: | Icahn Enterprises G.P. Inc., | ||
its general partner | |||
By: | /s/ Peter Reck | ||
Peter Reck | |||
Chief Accounting Officer |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Consolidated Statement of Operations Data: | |||||||||||||||
Net sales | $ | 1,408.8 | $ | 2,279.9 | $ | 4,421.9 | $ | 7,267.7 | |||||||
Cost of product sold | 1,076.7 | 2,066.7 | 3,342.5 | 6,332.6 | |||||||||||
Direct operating expenses | 145.8 | 136.8 | 372.7 | 380.3 | |||||||||||
Flood insurance recovery | — | — | (27.3 | ) | — | ||||||||||
Selling, general and administrative expenses | 26.1 | 31.8 | 78.5 | 86.2 | |||||||||||
Depreciation and amortization | 38.7 | 37.8 | 123.2 | 113.7 | |||||||||||
Operating income | 121.5 | 6.8 | 532.3 | 354.9 | |||||||||||
Interest expense and other financing costs | (11.9 | ) | (9.4 | ) | (36.5 | ) | (28.8 | ) | |||||||
Interest income | 0.3 | 0.3 | 0.7 | 0.7 | |||||||||||
Gain (loss) on derivatives, net | 11.8 | 25.7 | (52.2 | ) | 171.1 | ||||||||||
Other income (expense), net | 0.3 | 2.1 | 36.6 | (0.1 | ) | ||||||||||
Income before income tax expense | 122.0 | 25.5 | 480.9 | 497.8 | |||||||||||
Income tax expense | 23.1 | 4.2 | 105.2 | 118.8 | |||||||||||
Net income | 98.9 | 21.3 | 375.7 | 379.0 | |||||||||||
Less: Net income attributable to noncontrolling interest | 41.0 | 13.4 | 161.1 | 160.7 | |||||||||||
Net income attributable to CVR Energy stockholders | $ | 57.9 | $ | 7.9 | $ | 214.6 | $ | 218.3 | |||||||
Basic earnings per share | $ | 0.67 | $ | 0.09 | $ | 2.47 | $ | 2.51 | |||||||
Diluted earnings per share | $ | 0.67 | $ | 0.09 | $ | 2.47 | $ | 2.51 | |||||||
Dividends declared per share | $ | 0.50 | $ | 2.75 | $ | 1.50 | $ | 4.25 | |||||||
Adjusted EBITDA* | $ | 153.8 | $ | 90.5 | $ | 463.2 | $ | 391.9 | |||||||
Adjusted net income* | $ | 82.4 | $ | 37.0 | $ | 239.4 | $ | 194.0 | |||||||
Adjusted net income, per diluted share* | $ | 0.95 | $ | 0.43 | $ | 2.76 | $ | 2.23 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 86.8 | 86.8 | 86.8 | 86.8 | |||||||||||
Diluted | 86.8 | 86.8 | 86.8 | 86.8 |
As of September 30, 2015 | As of December 31, 2014 | ||||||||||||||
(audited) | |||||||||||||||
(in millions) | |||||||||||||||
Balance Sheet Data: | |||||||||||||||
Cash and cash equivalents | $ | 1,012.0 | $ | 753.7 | |||||||||||
Working capital | 960.1 | 1,033.0 | |||||||||||||
Total assets | 3,541.4 | 3,462.5 | |||||||||||||
Total debt, including current portion | 673.9 | 674.9 | |||||||||||||
Total CVR stockholders' equity | 1,072.5 | 988.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Cash Flow Data: | |||||||||||||||
Net cash flow provided by (used in): | |||||||||||||||
Operating activities | $ | 235.9 | $ | 125.3 | $ | 612.3 | $ | 530.8 | |||||||
Investing activities | (55.1 | ) | (56.6 | ) | (73.8 | ) | (249.6 | ) | |||||||
Financing activities | (106.5 | ) | (274.3 | ) | (280.2 | ) | (330.2 | ) | |||||||
Net cash flow | $ | 74.3 | $ | (205.6 | ) | $ | 258.3 | $ | (49.0 | ) |
Petroleum (CVR Refining) | Nitrogen Fertilizer (CVR Partners) | Corporate and Other | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Three months ended September 30, 2015 | |||||||||||||||
Net sales | $ | 1,361.6 | $ | 49.3 | $ | (2.1 | ) | $ | 1,408.8 | ||||||
Cost of product sold | 1,063.7 | 14.5 | (1.5 | ) | 1,076.7 | ||||||||||
Direct operating expenses (1) | 97.0 | 26.6 | — | 123.6 | |||||||||||
Major scheduled turnaround expenses | 15.6 | 6.6 | — | 22.2 | |||||||||||
Flood insurance recovery(2) | — | — | — | — | |||||||||||
Selling, general & administrative | 18.2 | 6.0 | 1.9 | 26.1 | |||||||||||
Depreciation and amortization | 29.9 | 7.4 | 1.4 | 38.7 | |||||||||||
Operating income (loss) | $ | 137.2 | $ | (11.8 | ) | $ | (3.9 | ) | $ | 121.5 | |||||
Capital expenditures | $ | 45.5 | $ | 6.4 | $ | 3.3 | $ | 55.2 |
Petroleum (CVR Refining) | Nitrogen Fertilizer (CVR Partners) | Corporate and Other | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Nine months ended September 30, 2015 | |||||||||||||||
Net sales | $ | 4,213.6 | $ | 223.2 | $ | (14.9 | ) | $ | 4,421.9 | ||||||
Cost of product sold | 3,300.8 | 55.7 | (14.0 | ) | 3,342.5 | ||||||||||
Direct operating expenses (1) | 272.7 | 75.7 | 0.1 | 348.5 | |||||||||||
Major scheduled turnaround expenses | 17.2 | 7.0 | — | 24.2 | |||||||||||
Flood insurance recovery(2) | (27.3 | ) | — | — | (27.3 | ) | |||||||||
Selling, general & administrative | 54.9 | 15.2 | 8.4 | 78.5 | |||||||||||
Depreciation and amortization | 98.1 | 21.2 | 3.9 | 123.2 | |||||||||||
Operating income (loss) | $ | 497.2 | $ | 48.4 | $ | (13.3 | ) | $ | 532.3 | ||||||
Capital expenditures | $ | 123.6 | $ | 12.4 | $ | 5.9 | $ | 141.9 |
Petroleum (CVR Refining) | Nitrogen Fertilizer (CVR Partners) | Corporate and Other | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Three months ended September 30, 2014 | |||||||||||||||
Net sales | $ | 2,215.2 | $ | 66.7 | $ | (2.0 | ) | $ | 2,279.9 | ||||||
Cost of product sold | 2,053.7 | 15.4 | (2.4 | ) | 2,066.7 | ||||||||||
Direct operating expenses (1) | 105.1 | 26.1 | 0.1 | 131.3 | |||||||||||
Major scheduled turnaround expenses | 5.5 | — | — | 5.5 | |||||||||||
Selling, general & administrative | 17.3 | 4.0 | 10.5 | 31.8 | |||||||||||
Depreciation and amortization | 29.7 | 6.8 | 1.3 | 37.8 | |||||||||||
Operating income (loss) | $ | 3.9 | $ | 14.4 | $ | (11.5 | ) | $ | 6.8 | ||||||
Capital expenditures | $ | 48.9 | $ | 6.0 | $ | 1.6 | $ | 56.5 |
Petroleum (CVR Refining) | Nitrogen Fertilizer (CVR Partners) | Corporate and Other | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
Nine months ended September 30, 2014 | |||||||||||||||
Net sales | $ | 7,056.9 | $ | 224.3 | $ | (13.5 | ) | $ | 7,267.7 | ||||||
Cost of product sold | 6,289.6 | 56.6 | (13.6 | ) | 6,332.6 | ||||||||||
Direct operating expenses (1) | 297.5 | 77.2 | 0.1 | 374.8 | |||||||||||
Major scheduled turnaround expenses | 5.5 | — | — | 5.5 | |||||||||||
Selling, general & administrative | 54.0 | 13.9 | 18.3 | 86.2 | |||||||||||
Depreciation and amortization | 89.9 | 20.3 | 3.5 | 113.7 | |||||||||||
Operating income (loss) | $ | 320.4 | $ | 56.3 | $ | (21.8 | ) | $ | 354.9 | ||||||
Capital expenditures | $ | 154.2 | $ | 13.5 | $ | 3.7 | $ | 171.4 |
Petroleum (CVR Refining) | Nitrogen Fertilizer (CVR Partners) | Corporate and Other | Consolidated | ||||||||||||
(in millions) | |||||||||||||||
September 30, 2015 | |||||||||||||||
Cash and cash equivalents | $ | 501.1 | $ | 33.2 | $ | 477.7 | $ | 1,012.0 | |||||||
Total assets | 2,506.2 | 523.8 | 511.4 | 3,541.4 | |||||||||||
Total debt, including current portion | 580.4 | 125.0 | (31.5 | ) | 673.9 | ||||||||||
December 31, 2014 | |||||||||||||||
Cash and cash equivalents | $ | 370.2 | $ | 79.9 | $ | 303.6 | $ | 753.7 | |||||||
Total assets | 2,417.8 | 578.8 | 465.9 | 3,462.5 | |||||||||||
Total debt, including current portion | 581.4 | 125.0 | (31.5 | ) | 674.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Petroleum Segment Summary Financial Results: | |||||||||||||||
Net sales | $ | 1,361.6 | $ | 2,215.2 | $ | 4,213.6 | $ | 7,056.9 | |||||||
Cost of product sold | 1,063.7 | 2,053.7 | 3,300.8 | 6,289.6 | |||||||||||
Direct operating expenses | 97.0 | 105.1 | 272.7 | 297.5 | |||||||||||
Major scheduled turnaround expenses | 15.6 | 5.5 | 17.2 | 5.5 | |||||||||||
Flood insurance recovery | — | — | (27.3 | ) | — | ||||||||||
Selling, general and administrative expenses | 18.2 | 17.3 | 54.9 | 54.0 | |||||||||||
Depreciation and amortization | 29.9 | 29.7 | 98.1 | 89.9 | |||||||||||
Operating income | 137.2 | 3.9 | 497.2 | 320.4 | |||||||||||
Interest expense and other financing costs | (10.4 | ) | (7.9 | ) | (32.2 | ) | (24.5 | ) | |||||||
Interest income | 0.1 | 0.1 | 0.3 | 0.3 | |||||||||||
Gain (loss) on derivatives, net | 11.8 | 25.7 | (52.2 | ) | 171.1 | ||||||||||
Other income (expense), net | 0.2 | — | 0.3 | (0.1 | ) | ||||||||||
Income before income tax expense | 138.9 | 21.8 | 413.4 | 467.2 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Net income | $ | 138.9 | $ | 21.8 | $ | 413.4 | $ | 467.2 | |||||||
Refining margin* | $ | 297.9 | $ | 161.5 | $ | 912.8 | $ | 767.3 | |||||||
Gross profit* | $ | 155.4 | $ | 21.2 | $ | 552.1 | $ | 374.4 | |||||||
Refining margin adjusted for FIFO impact* | $ | 343.5 | $ | 213.5 | $ | 946.5 | $ | 773.5 | |||||||
Adjusted Petroleum EBITDA* | $ | 229.6 | $ | 129.9 | $ | 585.6 | $ | 517.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(dollars per barrel) | |||||||||||||||
Petroleum Segment Key Operating Statistics: | |||||||||||||||
Per crude oil throughput barrel: | |||||||||||||||
Refining margin* | $ | 16.17 | $ | 9.96 | $ | 16.38 | $ | 14.29 | |||||||
FIFO impact (favorable) unfavorable | 2.48 | 3.20 | 0.60 | 0.11 | |||||||||||
Refining margin adjusted for FIFO impact* | 18.65 | 13.16 | 16.98 | 14.40 | |||||||||||
Gross profit* | 8.44 | 1.31 | 9.91 | 6.97 | |||||||||||
Gross profit excluding flood insurance recovery* | 8.44 | 1.31 | 9.42 | 6.97 | |||||||||||
Direct operating expenses expenses and major scheduled turnaround expenses | 6.11 | 6.82 | 5.20 | 5.64 | |||||||||||
Direct operating expenses expenses excluding major scheduled turnaround expenses | 5.27 | 6.48 | 4.89 | 5.54 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold | 5.79 | 6.52 | 4.88 | 5.32 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold | $ | 4.99 | $ | 6.20 | $ | 4.59 | $ | 5.23 | |||||||
Barrels sold (barrels per day) | 211,440 | 184,262 | 217,696 | 208,461 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
Petroleum Segment Summary Refining Throughput and Production Data (bpd): | |||||||||||||||||||||||||||
Throughput: | |||||||||||||||||||||||||||
Sweet | 185,228 | 87.8 | % | 164,067 | 89.3 | % | 184,481 | 85.5 | % | 178,390 | 86.5 | % | |||||||||||||||
Medium | 2,037 | 1.0 | % | 1,610 | 0.9 | % | 3,220 | 1.5 | % | 1,558 | 0.7 | % | |||||||||||||||
Heavy sour | 12,891 | 6.1 | % | 10,690 | 5.8 | % | 16,476 | 7.7 | % | 16,732 | 8.1 | % | |||||||||||||||
Total crude oil throughput | 200,156 | 94.9 | % | 176,367 | 96.0 | % | 204,177 | 94.7 | % | 196,680 | 95.3 | % | |||||||||||||||
All other feedstocks and blendstocks | 10,761 | 5.1 | % | 7,447 | 4.0 | % | 11,487 | 5.3 | % | 9,655 | 4.7 | % | |||||||||||||||
Total throughput | 210,917 | 100.0 | % | 183,814 | 100.0 | % | 215,664 | 100.0 | % | 206,335 | 100.0 | % | |||||||||||||||
Production: | |||||||||||||||||||||||||||
Gasoline | 103,479 | 48.9 | % | 88,633 | 48.1 | % | 106,650 | 49.1 | % | 100,630 | 48.5 | % | |||||||||||||||
Distillate | 88,479 | 41.8 | % | 78,711 | 42.8 | % | 91,262 | 42.0 | % | 87,477 | 42.2 | % | |||||||||||||||
Other (excluding internally produced fuel) | 19,608 | 9.3 | % | 16,791 | 9.1 | % | 19,210 | 8.9 | % | 19,361 | 9.3 | % | |||||||||||||||
Total refining production (excluding internally produced fuel) | 211,566 | 100.0 | % | 184,135 | 100.0 | % | 217,122 | 100.0 | % | 207,468 | 100.0 | % | |||||||||||||||
Product price (dollars per gallon): | |||||||||||||||||||||||||||
Gasoline | $ | 1.72 | $ | 2.69 | $ | 1.69 | $ | 2.74 | |||||||||||||||||||
Distillate | 1.60 | 2.85 | 1.70 | 2.94 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Market Indicators (dollars per barrel): | |||||||||||||||
West Texas Intermediate (WTI) NYMEX | $ | 46.50 | $ | 97.25 | $ | 51.01 | $ | 99.62 | |||||||
Crude Oil Differentials: | |||||||||||||||
WTI less WTS (light/medium sour) | (1.62 | ) | 8.78 | (0.47 | ) | 7.19 | |||||||||
WTI less WCS (heavy sour) | 15.14 | 18.34 | 12.79 | 19.47 | |||||||||||
NYMEX Crack Spreads: | |||||||||||||||
Gasoline | 22.23 | 18.13 | 22.30 | 19.83 | |||||||||||
Heating Oil | 20.05 | 21.56 | 22.87 | 23.41 | |||||||||||
NYMEX 2-1-1 Crack Spread | 21.14 | 19.85 | 22.59 | 21.62 | |||||||||||
PADD II Group 3 Basis: | |||||||||||||||
Gasoline | 0.63 | (3.82 | ) | (2.99 | ) | (5.24 | ) | ||||||||
Ultra Low Sulfur Diesel | 0.27 | 0.56 | (2.61 | ) | (0.36 | ) | |||||||||
PADD II Group 3 Product Crack: | |||||||||||||||
Gasoline | 22.87 | 14.32 | 19.31 | 14.58 | |||||||||||
Ultra Low Sulfur Diesel | 20.31 | 22.11 | 20.26 | 23.05 | |||||||||||
PADD II Group 3 2-1-1 | 21.59 | 18.21 | 19.78 | 18.81 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Coffeyville Refinery Financial Results: | |||||||||||||||
Net sales | $ | 840.0 | $ | 1,383.5 | $ | 2,698.0 | $ | 4,541.3 | |||||||
Cost of product sold | 669.9 | 1,311.4 | 2,135.6 | 4,068.6 | |||||||||||
Refining margin* | 170.1 | 72.1 | 562.4 | 472.7 | |||||||||||
Direct operating expenses | 54.0 | 62.2 | 155.6 | 169.2 | |||||||||||
Major scheduled turnaround expenses | 15.6 | 5.5 | 17.2 | 5.5 | |||||||||||
Flood insurance recovery | — | — | (27.3 | ) | — | ||||||||||
Depreciation and amortization | 15.7 | 17.6 | 54.7 | 54.4 | |||||||||||
Gross profit (loss)* | $ | 84.8 | $ | (13.2 | ) | $ | 362.2 | $ | 243.6 | ||||||
Refining margin adjusted for FIFO impact* | $ | 201.3 | $ | 111.4 | $ | 582.9 | $ | 476.1 | |||||||
Coffeyville Refinery Key Operating Statistics: | |||||||||||||||
Per crude oil throughput barrel: | |||||||||||||||
Refining margin* | $ | 15.57 | $ | 8.11 | $ | 16.42 | $ | 14.76 | |||||||
FIFO impact (favorable) unfavorable | 2.85 | 4.43 | 0.60 | 0.11 | |||||||||||
Refining margin adjusted for FIFO impact* | 18.42 | 12.54 | 17.02 | 14.87 | |||||||||||
Gross profit (loss)* | 7.76 | (1.48 | ) | 10.58 | 7.61 | ||||||||||
Gross profit (loss) excluding flood insurance recovery | 7.76 | (1.48 | ) | 9.78 | 7.61 | ||||||||||
Direct operating expenses and major scheduled turnaround expenses | 6.37 | 7.62 | 5.05 | 5.46 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses | 4.95 | 7.00 | 4.54 | 5.29 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold | 5.95 | 7.01 | 4.61 | 4.96 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold | $ | 4.62 | $ | 6.44 | $ | 4.15 | $ | 4.81 | |||||||
Barrels sold (barrels per day) | 127,089 | 104,836 | 137,365 | 128,963 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Coffeyville Refinery Throughput and Production Data (bpd): | |||||||||||||||||||||||
Throughput: | |||||||||||||||||||||||
Sweet | 105,314 | 83.3 | % | 85,835 | 83.8 | % | 106,256 | 79.2 | % | 100,063 | 79.9 | % | |||||||||||
Medium | 552 | 0.4 | % | — | — | % | 2,732 | 2.0 | % | 493 | 0.4 | % | |||||||||||
Heavy sour | 12,891 | 10.2 | % | 10,690 | 10.4 | % | 16,476 | 12.3 | % | 16,732 | 13.4 | % | |||||||||||
Total crude oil throughput | 118,757 | 93.9 | % | 96,525 | 94.2 | % | 125,464 | 93.5 | % | 117,288 | 93.7 | % | |||||||||||
All other feedstocks and blendstocks | 7,753 | 6.1 | % | 5,882 | 5.8 | % | 8,691 | 6.5 | % | 7,880 | 6.3 | % | |||||||||||
Total throughput | 126,510 | 100.0 | % | 102,407 | 100.0 | % | 134,155 | 100.0 | % | 125,168 | 100.0 | % | |||||||||||
Production: | |||||||||||||||||||||||
Gasoline | 60,849 | 47.3 | % | 50,397 | 48.2 | % | 65,000 | 47.4 | % | 61,629 | 48.1 | % | |||||||||||
Distillate | 55,521 | 43.1 | % | 45,935 | 43.9 | % | 59,050 | 43.0 | % | 55,011 | 43.0 | % | |||||||||||
Other (excluding internally produced fuel) | 12,407 | 9.6 | % | 8,304 | 7.9 | % | 13,115 | 9.6 | % | 11,352 | 8.9 | % | |||||||||||
Total refining production (excluding internally produced fuel) | 128,777 | 100.0 | % | 104,636 | 100.0 | % | 137,165 | 100.0 | % | 127,992 | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except operating statistics) | |||||||||||||||
Wynnewood Refinery Financial Results: | |||||||||||||||
Net sales | $ | 520.5 | $ | 830.7 | $ | 1,512.3 | $ | 2,512.3 | |||||||
Cost of product sold | 393.1 | 742.3 | 1,164.5 | 2,221.0 | |||||||||||
Refining margin* | 127.4 | 88.4 | 347.8 | 291.3 | |||||||||||
Direct operating expenses | 42.9 | 43.0 | 117.0 | 128.4 | |||||||||||
Major scheduled turnaround expenses | — | — | — | — | |||||||||||
Depreciation and amortization | 12.5 | 10.2 | 37.6 | 30.3 | |||||||||||
Gross profit* | $ | 72.0 | $ | 35.2 | $ | 193.2 | $ | 132.6 | |||||||
Refining margin adjusted for FIFO impact* | $ | 141.8 | $ | 101.1 | $ | 361.0 | $ | 294.0 | |||||||
Wynnewood Refinery Key Operating Statistics: | |||||||||||||||
Per crude oil throughput barrel: | |||||||||||||||
Refining margin* | $ | 17.01 | $ | 12.03 | $ | 16.18 | $ | 13.44 | |||||||
FIFO impact (favorable) unfavorable | 1.93 | 1.73 | 0.61 | 0.13 | |||||||||||
Refining margin adjusted for FIFO impact* | 18.94 | 13.76 | 16.79 | 13.57 | |||||||||||
Gross profit* | 9.61 | 4.79 | 8.99 | 6.12 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses | 5.73 | 5.86 | 5.44 | 5.92 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses | 5.73 | 5.86 | 5.44 | 5.92 | |||||||||||
Direct operating expenses and major scheduled turnaround expenses per barrel sold | 5.53 | 5.89 | 5.33 | 5.92 | |||||||||||
Direct operating expenses excluding major scheduled turnaround expenses per barrel sold | $ | 5.53 | $ | 5.89 | $ | 5.33 | $ | 5.92 | |||||||
Barrels sold (barrels per day) | 84,351 | 79,426 | 80,332 | 79,498 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
Wynnewood Refinery Throughput and Production Data (bpd): | |||||||||||||||||||||||
Throughput: | |||||||||||||||||||||||
Sweet | 79,914 | 94.6 | % | 78,232 | 96.1 | % | 78,225 | 96.0 | % | 78,327 | 96.5 | % | |||||||||||
Medium | 1,485 | 1.8 | % | 1,610 | 2.0 | % | 488 | 0.6 | % | 1,065 | 1.3 | % | |||||||||||
Heavy sour | — | — | % | — | — | % | — | — | % | — | — | % | |||||||||||
Total crude oil throughput | 81,399 | 96.4 | % | 79,842 | 98.1 | % | 78,713 | 96.6 | % | 79,392 | 97.8 | % | |||||||||||
All other feedstocks and blendstocks | 3,008 | 3.6 | % | 1,565 | 1.9 | % | 2,796 | 3.4 | % | 1,775 | 2.2 | % | |||||||||||
Total throughput | 84,407 | 100.0 | % | 81,407 | 100.0 | % | 81,509 | 100.0 | % | 81,167 | 100.0 | % | |||||||||||
Production: | |||||||||||||||||||||||
Gasoline | 42,630 | 51.5 | % | 38,236 | 48.1 | % | 41,650 | 52.1 | % | 39,001 | 49.1 | % | |||||||||||
Distillate | 32,958 | 39.8 | % | 32,776 | 41.2 | % | 32,212 | 40.3 | % | 32,466 | 40.8 | % | |||||||||||
Other (excluding internally produced fuel) | 7,201 | 8.7 | % | 8,487 | 10.7 | % | 6,095 | 7.6 | % | 8,009 | 10.1 | % | |||||||||||
Total refining production (excluding internally produced fuel) | 82,789 | 100.0 | % | 79,499 | 100.0 | % | 79,957 | 100.0 | % | 79,476 | 100.0 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Nitrogen Fertilizer Segment Financial Results: | |||||||||||||||
Net sales | $ | 49.3 | $ | 66.7 | $ | 223.2 | $ | 224.3 | |||||||
Cost of product sold | 14.5 | 15.4 | 55.7 | 56.6 | |||||||||||
Direct operating expenses | 26.6 | 26.1 | 75.7 | 77.2 | |||||||||||
Major scheduled turnaround expenses | 6.6 | — | 7.0 | — | |||||||||||
Selling, general and administrative expenses | 6.0 | 4.0 | 15.2 | 13.9 | |||||||||||
Depreciation and amortization | 7.4 | 6.8 | 21.2 | 20.3 | |||||||||||
Operating income (loss) | (11.8 | ) | 14.4 | 48.4 | 56.3 | ||||||||||
Interest expense and other financing costs | (1.8 | ) | (1.7 | ) | (5.2 | ) | (5.0 | ) | |||||||
Other income, net | 0.1 | — | 0.1 | — | |||||||||||
Income (loss) before income tax expense | (13.5 | ) | 12.7 | 43.3 | 51.3 | ||||||||||
Income tax expense | — | — | — | — | |||||||||||
Net income (loss) | $ | (13.5 | ) | $ | 12.7 | $ | 43.3 | $ | 51.3 | ||||||
Adjusted Nitrogen Fertilizer EBITDA* | $ | 3.8 | $ | 21.1 | $ | 78.3 | $ | 76.8 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Nitrogen Fertilizer Segment Key Operating Statistics: | |||||||||||||||
Production volume (thousand tons): | |||||||||||||||
Ammonia (gross produced) (1) | 66.3 | 99.8 | 269.4 | 283.0 | |||||||||||
Ammonia (net available for sale) (1)(2) | 12.1 | 11.8 | 31.2 | 23.9 | |||||||||||
UAN | 152.4 | 223.5 | 658.1 | 704.1 | |||||||||||
Pet coke consumed (thousand tons) | 82.7 | 117.6 | 335.8 | 359.7 | |||||||||||
Pet coke (cost per ton) | $ | 25 | $ | 29 | $ | 26 | $ | 28 | |||||||
Sales (thousand tons): | |||||||||||||||
Ammonia | 7.8 | 6.2 | 26.9 | 14.5 | |||||||||||
UAN | 174.5 | 220.3 | 698.8 | 714.2 | |||||||||||
Product pricing at gate (dollars per ton) (3): | |||||||||||||||
Ammonia | $ | 478 | $ | 503 | $ | 529 | $ | 497 | |||||||
UAN | $ | 227 | $ | 254 | $ | 256 | $ | 263 | |||||||
On-stream factors (4): | |||||||||||||||
Gasification | 62.2 | % | 94.6 | % | 87.1 | % | 95.8 | % | |||||||
Ammonia | 57.8 | % | 92.0 | % | 83.7 | % | 90.7 | % | |||||||
UAN | 56.7 | % | 89.2 | % | 83.6 | % | 90.7 | % | |||||||
Market Indicators: | |||||||||||||||
Ammonia - Southern Plains (dollars per ton) | $ | 478 | $ | 570 | $ | 526 | $ | 524 | |||||||
UAN - Mid Corn belt (dollars per ton) | $ | 264 | $ | 297 | $ | 294 | $ | 321 | |||||||
_______________ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions, except per share data) | |||||||||||||||
Reconciliation of Net Income to Adjusted Net Income: | |||||||||||||||
Net Income before income tax expense | $ | 122.0 | $ | 25.5 | $ | 480.9 | $ | 497.8 | |||||||
Adjustments: | |||||||||||||||
FIFO impact (favorable) unfavorable | 45.6 | 52.0 | 33.7 | 6.2 | |||||||||||
Share-based compensation | 3.2 | 2.0 | 9.1 | 10.8 | |||||||||||
Major scheduled turnaround expenses | 22.2 | 5.5 | 24.2 | 5.5 | |||||||||||
(Gain) loss on derivatives, net | (11.8 | ) | (25.7 | ) | 52.2 | (171.1 | ) | ||||||||
Current period settlement on derivative contracts (1) | 0.8 | 38.2 | (34.0 | ) | 93.2 | ||||||||||
Flood insurance recovery(2) | — | — | (27.3 | ) | — | ||||||||||
Expenses associated with Rentech Nitrogen mergers(3) | 1.5 | — | 1.5 | — | |||||||||||
Adjusted net income before income tax expense and noncontrolling interest | 183.5 | 97.5 | 540.3 | 442.4 | |||||||||||
Adjusted net income attributable to noncontrolling interest | (62 | ) | (37.3 | ) | (179.5 | ) | (145.6 | ) | |||||||
Income tax expense, as adjusted | (39.1 | ) | (23.2 | ) | (121.4 | ) | (102.8 | ) | |||||||
Adjusted net income attributable to CVR Energy stockholders | $ | 82.4 | $ | 37.0 | $ | 239.4 | $ | 194.0 | |||||||
Adjusted net income per diluted share | $ | 0.95 | $ | 0.43 | $ | 2.76 | $ | 2.23 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Net income attributable to CVR Energy stockholders | $ | 57.9 | $ | 7.9 | $ | 214.6 | $ | 218.3 | |||||||
Add: | |||||||||||||||
Interest expense and other financing costs, net of interest income | 11.6 | 9.1 | 35.8 | 28.1 | |||||||||||
Income tax expense | 23.1 | 4.2 | 105.2 | 118.8 | |||||||||||
Depreciation and amortization | 38.7 | 37.8 | 123.2 | 113.7 | |||||||||||
EBITDA adjustments included in noncontrolling interest | (18.0 | ) | (16.7 | ) | (56.6 | ) | (46.8 | ) | |||||||
EBITDA | 113.3 | 42.3 | 422.2 | 432.1 | |||||||||||
Add: | |||||||||||||||
FIFO impacts, (favorable) unfavorable | 45.6 | 52.0 | 33.7 | 6.2 | |||||||||||
Share-based compensation | 3.2 | 2.0 | 9.1 | 10.8 | |||||||||||
Major scheduled turnaround expenses | 22.2 | 5.5 | 24.2 | 5.5 | |||||||||||
(Gain) loss on derivatives, net | (11.8 | ) | (25.7 | ) | 52.2 | (171.1 | ) | ||||||||
Current period settlement on derivative contracts (1) | 0.8 | 38.2 | (34.0 | ) | 93.2 | ||||||||||
Flood insurance recovery (2) | — | — | (27.3 | ) | — | ||||||||||
Expenses associated with the Rentech Nitrogren mergers (3) | 1.5 | — | 1.5 | — | |||||||||||
Adjustments included in noncontrolling interest | (21.0 | ) | (23.8 | ) | (18.4 | ) | 15.2 | ||||||||
Adjusted EBITDA | $ | 153.8 | $ | 90.5 | $ | 463.2 | $ | 391.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Petroleum: | |||||||||||||||
Petroleum net income | $ | 138.9 | $ | 21.8 | $ | 413.4 | $ | 467.2 | |||||||
Add: | |||||||||||||||
Interest expense and other financing costs, net of interest income | 10.3 | 7.8 | 31.9 | 24.2 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Depreciation and amortization | 29.9 | 29.7 | 98.1 | 89.9 | |||||||||||
Petroleum EBITDA | 179.1 | 59.3 | 543.4 | 581.3 | |||||||||||
Add: | |||||||||||||||
FIFO impact (favorable), unfavorable | 45.6 | 52.0 | 33.7 | 6.2 | |||||||||||
Share-based compensation, non-cash | 0.3 | 0.6 | 0.4 | 1.9 | |||||||||||
Major scheduled turnaround expenses | 15.6 | 5.5 | 17.2 | 5.5 | |||||||||||
(Gain) loss on derivatives, net | (11.8 | ) | (25.7 | ) | 52.2 | (171.1 | ) | ||||||||
Current period settlements on derivative contracts (1) | 0.8 | 38.2 | (34.0 | ) | 93.2 | ||||||||||
Flood insurance recovery(2) | — | — | (27.3 | ) | — | ||||||||||
Adjusted Petroleum EBITDA | $ | 229.6 | $ | 129.9 | $ | 585.6 | $ | 517.0 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(in millions) | |||||||||||||||
Nitrogen Fertilizer: | |||||||||||||||
Nitrogen Fertilizer net income (loss) | $ | (13.5 | ) | $ | 12.7 | $ | 43.3 | $ | 51.3 | ||||||
Add: | |||||||||||||||
Interest expense and other financing costs, net | 1.8 | 1.7 | 5.2 | 5.0 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Depreciation and amortization | 7.4 | 6.8 | 21.2 | 20.3 | |||||||||||
Nitrogen Fertilizer EBITDA | $ | (4.3 | ) | $ | 21.2 | $ | 69.7 | $ | 76.6 | ||||||
Add: | |||||||||||||||
Share-based compensation, non-cash | — | (0.1 | ) | 0.1 | 0.2 | ||||||||||
Major scheduled turnaround expenses | 6.6 | — | 7.0 | — | |||||||||||
Expenses associated with the Rentech Nitrogen mergers(3) | 1.5 | — | 1.5 | — | |||||||||||
Adjusted Nitrogen Fertilizer EBITDA | $ | 3.8 | $ | 21.1 | $ | 78.3 | $ | 76.8 |
(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. |
(2) | Represents an insurance recovery from CRRM’s environmental insurance carriers as a result of the flood and crude oil discharge at the Coffeyville refinery on June/July 2007. |
(3) | On August 9, 2015, CVR Partners entered into an Agreement and Plan of Merger with Rentech Nitrogen Partners, L.P. (“Rentech Nitrogen”) and Rentech Nitrogen GP, LLC (“Rentech Nitrogen GP”) with Rentech Nitrogen and Rentech Nitrogen GP continuing as surviving entities and wholly-owned subsidiaries of CVR Partners. The Nitrogen Fertilizer Partnership incurred legal and other professional fees and other merger related expenses that are referred to herein as expenses associated with the Rentech Nitrogen mergers, which are included in selling, general and administrative expenses for the three and nine months ended September 30, 2015 . |
Commodity Swaps | Barrels | Fixed Price(1) | |||||
Fourth Quarter 2015 | 600,000 | 28.48 | |||||
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 | 3,060,000 | $ | 28.91 |
(1) | Weighted-average price of all positions for period indicated. |