Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33492 | |
Entity Registrant Name | CVR ENERGY, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1512186 | |
Entity Address, Address Line One | 2277 Plaza Drive, Suite 500 | |
Entity Address, City or Town | Sugar Land | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77479 | |
City Area Code | 281 | |
Local Phone Number | 207-3200 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | CVI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100,530,599 | |
Entity Central Index Key | 0001376139 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents (including $33 and $37, respectively, of consolidated variable interest entities (“VIEs”)) | $ 606 | $ 652 |
Accounts receivable (including $15 and $34, respectively, of VIEs) | 148 | 182 |
Inventories (including $47 and $48, respectively, of VIEs) | 252 | 373 |
Prepaid expenses and other current assets (including $5 and $5, respectively, of VIEs) | 253 | 67 |
Total current assets | 1,259 | 1,274 |
Property, plant and equipment, net (including $925 and $952, respectively, of VIEs) | 2,294 | 2,336 |
Other long-term assets (including $19 and $61, respectively, of VIEs) | 375 | 295 |
Total assets | 3,928 | 3,905 |
Current liabilities: | ||
Accounts payable (including $24 and $24, respectively, of VIEs) | 236 | 412 |
Other current liabilities (including $21 and $52, respectively, of VIEs) | 133 | 184 |
Total current liabilities | 369 | 596 |
Long-term debt and finance lease obligations (including $632 and $632, respectively, of VIEs) | 1,683 | 1,190 |
Deferred income taxes | 408 | 396 |
Other long-term liabilities (including $9 and $10, respectively, of VIEs) | 55 | 55 |
Total long-term liabilities | 2,146 | 1,641 |
Commitments and contingencies (See Note 13) | ||
CVR stockholders’ equity: | ||
Common stock $0.01 par value per share, 350,000,000 shares authorized, 100,629,209 and 100,629,209 shares issued as of June 30, 2020 and December 31, 2019, respectively. | 1 | 1 |
Additional paid-in-capital | 1,508 | 1,507 |
Accumulated deficit | (327) | (113) |
Treasury stock, 98,610 shares at cost | (2) | (2) |
Total CVR stockholders’ equity | 1,180 | 1,393 |
Noncontrolling interest | 233 | 275 |
Total equity | 1,413 | 1,668 |
Total liabilities and equity | $ 3,928 | $ 3,905 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 606 | $ 652 |
Accounts receivable | 148 | 182 |
Inventories | 252 | 373 |
Prepaid expenses and other current assets | 253 | 67 |
Property, plant and equipment, net | 2,294 | 2,336 |
Other long-term assets | 375 | 295 |
Current liabilities: | ||
Accounts payable | 236 | 412 |
Other current liabilities | 133 | 184 |
Long-term debt and finance lease obligations | 1,683 | 1,190 |
Other long-term liabilities | $ 55 | $ 55 |
Equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, issued (in shares) | 100,629,209 | 100,629,209 |
Treasury stock (in shares) | 98,610 | 98,610 |
Variable Interest Entities | ||
Current assets: | ||
Cash and cash equivalents | $ 33 | $ 37 |
Accounts receivable | 15 | 34 |
Inventories | 47 | 48 |
Prepaid expenses and other current assets | 5 | 5 |
Property, plant and equipment, net | 925 | 952 |
Other long-term assets | 19 | 61 |
Current liabilities: | ||
Accounts payable | 24 | 24 |
Other current liabilities | 21 | 52 |
Long-term debt and finance lease obligations | 632 | 632 |
Other long-term liabilities | $ 9 | $ 10 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 675 | $ 1,687 | $ 1,806 | $ 3,173 |
Operating costs and expenses: | ||||
Cost of materials and other | 444 | 1,267 | 1,501 | 2,368 |
Direct operating expenses (exclusive of depreciation and amortization) | 119 | 132 | 237 | 258 |
Depreciation and amortization | 71 | 76 | 134 | 141 |
Cost of sales | 634 | 1,475 | 1,872 | 2,767 |
Selling, general and administrative expenses (exclusive of depreciation and amortization) | 22 | 27 | 47 | 57 |
Depreciation and amortization | 3 | 2 | 4 | 4 |
Loss (gain) on asset disposals | 1 | (9) | 2 | (7) |
Goodwill impairment | 41 | 0 | 41 | 0 |
Operating (loss) income | (26) | 192 | (160) | 352 |
Other (expense) income: | ||||
Interest expense, net | (31) | (26) | (67) | (52) |
Investment income from marketable securities | 21 | 0 | 52 | 0 |
Other (expense) income, net | (1) | 3 | 0 | 6 |
(Loss) income before income tax expense | (37) | 169 | (175) | 306 |
Income tax (benefit) expense | (5) | 41 | (42) | 76 |
Net (loss) income | (32) | 128 | (133) | 230 |
Less: Net (loss) income attributable to noncontrolling interest | (27) | 12 | (41) | 13 |
Net (loss) income attributable to CVR Energy stockholders | $ (5) | $ 116 | $ (92) | $ 217 |
Basic and diluted (loss) earnings per share (in dollars per share) | $ (0.05) | $ 1.16 | $ (0.92) | $ 2.16 |
Dividends declared per share (in dollars per share) | $ 0.40 | $ 0.75 | $ 1.20 | $ 1.50 |
Weighted-average common shares outstanding: | ||||
Basic and diluted (in shares) | 100.5 | 100.5 | 100.5 | 100.5 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) - USD ($) $ in Millions | Total | Effect of turnaround accounting change | Total CVR Stockholders’ Equity | Total CVR Stockholders’ EquityEffect of turnaround accounting change | $0.01 Par Value Common Stock | Additional Paid-In Capital | Additional Paid-In CapitalEffect of turnaround accounting change | Accumulated Deficit | Treasury Stock | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2018 | 100,629,209 | |||||||||
Beginning balance at Dec. 31, 2018 | $ 1,943 | $ 34 | $ 1,286 | $ 34 | $ 1 | $ 1,474 | $ 34 | $ (187) | $ (2) | $ 657 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Dividends paid to CVR Energy stockholders | (75) | (75) | (75) | |||||||
Distributions from CVR Partners to its public unitholders | (9) | (9) | ||||||||
Acquisition of CVR Refining noncontrolling interest | (335) | (1) | (1) | (334) | ||||||
Other | (2) | (2) | (1) | (1) | ||||||
Net income (loss) | 102 | 101 | 101 | 1 | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 100,629,209 | |||||||||
Ending balance at Mar. 31, 2019 | 1,658 | 1,343 | $ 1 | 1,506 | (162) | (2) | 315 | |||
Beginning balance (in shares) at Dec. 31, 2018 | 100,629,209 | |||||||||
Beginning balance at Dec. 31, 2018 | 1,943 | $ 34 | 1,286 | $ 34 | $ 1 | 1,474 | $ 34 | (187) | (2) | 657 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | 230 | |||||||||
Ending balance (in shares) at Jun. 30, 2019 | 100,629,209 | |||||||||
Ending balance at Jun. 30, 2019 | 1,706 | 1,384 | $ 1 | 1,506 | (121) | (2) | 322 | |||
Beginning balance (in shares) at Mar. 31, 2019 | 100,629,209 | |||||||||
Beginning balance at Mar. 31, 2019 | 1,658 | 1,343 | $ 1 | 1,506 | (162) | (2) | 315 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Dividends paid to CVR Energy stockholders | (75) | (75) | (75) | |||||||
Distributions from CVR Partners to its public unitholders | (5) | (5) | ||||||||
Net income (loss) | 128 | 116 | 116 | 12 | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 100,629,209 | |||||||||
Ending balance at Jun. 30, 2019 | 1,706 | 1,384 | $ 1 | 1,506 | (121) | (2) | 322 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 100,629,209 | |||||||||
Beginning balance at Dec. 31, 2019 | 1,668 | 1,393 | $ 1 | 1,507 | (113) | (2) | 275 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Dividends paid to CVR Energy stockholders | (80) | (80) | (80) | |||||||
Other | (1) | (1) | (1) | |||||||
Net income (loss) | (101) | (87) | (87) | (14) | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 100,629,209 | |||||||||
Ending balance at Mar. 31, 2020 | 1,486 | 1,225 | $ 1 | 1,507 | (281) | (2) | 261 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 100,629,209 | |||||||||
Beginning balance at Dec. 31, 2019 | 1,668 | 1,393 | $ 1 | 1,507 | (113) | (2) | 275 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income (loss) | (133) | |||||||||
Ending balance (in shares) at Jun. 30, 2020 | 100,629,209 | |||||||||
Ending balance at Jun. 30, 2020 | 1,413 | 1,180 | $ 1 | 1,508 | (327) | (2) | 233 | |||
Beginning balance (in shares) at Mar. 31, 2020 | 100,629,209 | |||||||||
Beginning balance at Mar. 31, 2020 | 1,486 | 1,225 | $ 1 | 1,507 | (281) | (2) | 261 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Dividends paid to CVR Energy stockholders | (41) | (41) | (41) | |||||||
Changes in equity due to CVR Partners’ common unit repurchases | 0 | 1 | 1 | (1) | ||||||
Net income (loss) | (32) | (5) | (5) | (27) | ||||||
Ending balance (in shares) at Jun. 30, 2020 | 100,629,209 | |||||||||
Ending balance at Jun. 30, 2020 | $ 1,413 | $ 1,180 | $ 1 | $ 1,508 | $ (327) | $ (2) | $ 233 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||||||
Net (loss) income | $ (32) | $ (101) | $ 128 | $ 102 | $ (133) | $ 230 | |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 74 | 78 | 138 | 145 | |||
Loss on lower of cost or net realizable value adjustment | 58 | 0 | |||||
Goodwill impairment | 41 | 0 | 41 | 0 | |||
Unrealized gain on marketable securities | (18) | 0 | (48) | 0 | |||
Deferred income tax expense | 11 | 21 | |||||
Loss (gain) on disposition of assets | 2 | (7) | |||||
Share-based compensation | 1 | 11 | |||||
Other items | 8 | 4 | |||||
Changes in assets and liabilities: | |||||||
Current assets and liabilities | (130) | (22) | |||||
Non-current assets and liabilities | 3 | 2 | |||||
Net cash (used in) provided by operating activities | (49) | 384 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (77) | (55) | |||||
Turnaround expenditures | (147) | (24) | |||||
Proceeds from sale of assets | 1 | 36 | |||||
Investment in marketable securities | (140) | 0 | |||||
Other investing activities | 2 | 0 | |||||
Net cash used in investing activities | (361) | (43) | |||||
Cash flows from financing activities: | |||||||
Proceeds from issuance of senior secured notes | 1,000 | 0 | |||||
Principal payments on senior secured notes | (500) | 0 | |||||
Call premium on extinguishment of debt | (5) | 0 | |||||
Repurchase of CVR Partners common units | (1) | 0 | |||||
Acquisition of CVR Refining common units | 0 | (301) | |||||
Dividends to CVR Energy’s stockholders | (121) | (150) | $ (307) | ||||
Distributions to CVR Refining or CVR Partners’ noncontrolling interest holders | 0 | (14) | |||||
Other financing activities | (9) | (4) | |||||
Net cash provided by (used in) financing activities | 364 | (469) | |||||
Net decrease in cash and cash equivalents | (46) | (128) | |||||
Cash and cash equivalents, beginning of period | $ 652 | $ 668 | 652 | 668 | 668 | ||
Cash and cash equivalents, end of period | $ 606 | $ 540 | $ 606 | $ 540 | $ 652 |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | (1) Organization and Nature of Business Organization CVR Energy, Inc. (“CVR Energy,” “CVR,” “we,” “us,” “our,” or the “Company”) is a diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries through its holdings in CVR Refining, LP (the “Petroleum Segment” or “CVR Refining”) and CVR Partners, LP (the “Nitrogen Fertilizer Segment” or “CVR Partners”). CVR Refining is an independent petroleum refiner and marketer of high value transportation fuels. CVR Partners produces and markets nitrogen fertilizers in the form of urea ammonium nitrate (“UAN”) and ammonia. CVR’s common stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “CVI.” Icahn Enterprises L.P. and its affiliates (“IEP”) owned approximately 71% of the Company’s outstanding common shares as of June 30, 2020. CVR Partners, LP As of June 30, 2020, public security holders held approximately 65% of CVR Partners’ outstanding common units and CVR Services, LLC (“CVR Services”) (formerly Coffeyville Resources, LLC), a wholly-owned subsidiary of CVR Energy, held approximately 35% of CVR Partners’ outstanding common units. In addition, CVR Services held 100% of CVR Partners’ general partner, CVR GP, LLC, which held a non-economic general partner interest in CVR Partners as of June 30, 2020. Following the acquisition of the noncontrolling interest in CVR Refining in January 2019, the noncontrolling interest reflected on the condensed consolidated balance sheets of CVR is only impacted by the net income of, and distributions from, CVR Partners. On April 20, 2020, the average closing price of CVR Partners’ common units over a 30 consecutive trading-day period fell below $1.00 per common unit, resulting in noncompliance with the continued listing compliance standards in Section 802.01C of the NYSE Listing Company Manual. CVR Partners received written notification of this noncompliance from the NYSE on April 22, 2020, and currently has until January 1, 2021 to regain compliance or be subject to the NYSE’s suspension and delisting procedures. See the Form 8-K filed by CVR Partners with the SEC on April 24, 2020 for further discussion. As of June 30, 2020, the average closing price of CVR Partners’ common units over a consecutive 30 trading-day period has remained below $1.00 per common unit. CVR Partners currently intends to monitor the closing price of its common units and consider available options if its common units do not trade at a level likely to result in CVR Partners regaining compliance with Section 802.01C by January 1, 2021. These options could include, but are not limited to, additional repurchases of common units, reverse unit splits, or other actions. On May 6, 2020, the board of directors of CVR Partners’ general partner (the “UAN GP Board”), on behalf of CVR Partners, authorized a unit repurchase program (the “Unit Repurchase Program”). The Unit Repurchase Program enables CVR Partners to repurchase up to $10 million of its common units. Repurchases under the Unit Repurchase Program may be made from time-to-time through open market transactions, block trades, privately negotiated transactions, or otherwise in accordance with applicable securities laws. The timing, price, and amount of repurchases (if any) will be made at the discretion of management of CVR Partners’ general partner and are subject to market conditions, as well as corporate, regulatory, and other considerations. This Unit Repurchase Program does not obligate CVR Partners to acquire any common units and may be cancelled or terminated by the UAN GP Board at any time. On May 20, 2020, CVR Partners entered into a common unit repurchase agreement, pursuant to Rules 10b5-1 and 10b-18 of the Exchange Act, to facilitate the repurchase of its common units and which CVR Partners may terminate at any time by providing written notice. During the three and six months ended June 30, 2020, CVR Partners repurchased 890,218 common units on the open market at a cost of $1.0 million, inclusive of transaction costs, or an average price of $1.07 per common unit. At June 30, 2020, CVR Partners had $9.0 million in authority remaining under the Unit Repurchase Program. As a result of these repurchases, and the resulting change in CVR Energy’s ownership of CVR Partners while maintaining control, CVR Energy recognized an increase of $1.2 million to additional paid-in capital from the reduction of non-controlling interests totaling $1.6 million and the recognition of a deferred tax liability totaling $0.4 million from changes in its book versus tax basis in CVR Partners. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | (2) Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). These condensed consolidated financial statements should be read in conjunction with the December 31, 2019 audited consolidated financial statements and notes thereto included in CVR Energy’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). Our condensed consolidated financial statements include the consolidated results of CVR Partners, which is defined as a variable interest entity. In the opinion of the Company’s management, the accompanying condensed consolidated financial statements reflect all adjustments that are necessary for fair presentation of the financial position and results of operations of the Company for the periods presented. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Certain reclassifications have been made within the condensed consolidated balance sheets as of December 31, 2019 and the condensed consolidated statements of operations for the three and six months ended June 30, 2019. Catalyst inventory with a value of $17 million as of December 31, 2019 was reclassified during the first quarter of 2020 to Other long-term assets to conform to current presentation. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Results of operations and cash flows for the interim periods presented are not necessarily indicative of the results that will be realized for the year ending December 31, 2020 or any other interim or annual period. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements and Accounting Changes | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements and Accounting Changes | (3) Recent Accounting Pronouncements and Accounting Changes Recent Accounting Pronouncements - Adoption of Credit Losses Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU replaces the incurred loss model with a current expected credit loss model for more timely recognition of expected impairment losses for most financial assets and certain other instruments that are not measured at fair value through net income. Effective January 1, 2020, we adopted this ASU with no material impact on the Company’s consolidated financial position or results of operations. Recent Accounting Pronouncements - Adoption of Fair Value Measurement Standard In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The ASU eliminates such disclosures as the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy. Certain disclosures are required to be applied on a retrospective basis and others on a prospective basis. Effective January 1, 2020, we adopted this ASU with no material impact on the Company’s disclosures. New Accounting Standards Issued But Not Yet Implemented In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and modifies other areas of the topic to clarify the application of GAAP. Certain amendments within the standard are required to be applied on a retrospective basis and others on a prospective basis. This standard is effective for the Company beginning January 1, 2021, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance on its consolidated financial statements, but does not currently expect adoption will have a material impact on the Company’s consolidated financial position or results of operations. The Company does not intend to early adopt this ASU. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU was issued because, by the end of 2021, banks will no longer be required to report information that is used to determine London Interbank Offered Rate (“LIBOR”), which is used globally by all types of entities. As a result, LIBOR could be discontinued, as well as other interest |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (4) Inventories Inventories consisted of the following: (in millions) June 30, 2020 December 31, 2019 Finished goods $ 100 $ 177 Raw materials 73 112 In-process inventories 15 18 Parts, supplies and other 64 66 Total inventories $ 252 $ 373 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (5) Property, Plant and Equipment Property, plant and equipment consisted of the following: (in millions) June 30, 2020 December 31, 2019 Machinery and equipment $ 3,877 $ 3,829 Buildings and improvements 88 87 ROU finance leases 55 57 Land and improvements 47 46 Furniture and fixtures 37 35 Construction in progress 92 95 Other 14 14 4,210 4,163 Less: Accumulated depreciation 1,916 1,827 Total property, plant and equipment, net $ 2,294 $ 2,336 As of June 30, 2020, the Company had not identified the existence of an impairment indicator for our long-lived asset groups as outlined under ASC 360. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | (6) Goodwill One of the reporting units associated with our Nitrogen Fertilizer Segment’s Coffeyville, Kansas facility (the “Coffeyville Facility”) had a goodwill balance of $41 million at December 31, 2019. During the second quarter of 2020, following the completion of the spring planting season, the market pricing for ammonia and UAN, the Nitrogen Fertilizer Segment’s two primary products, experienced significant pricing declines driven by updated market expectations around supply and demand fundamentals which are currently expected to continue into the second half of 2020. Additionally, significant uncertainty remains as to the nature and extent of impacts to be seen on the overall demand for corn and soybean given reduced ethanol production and broader economic conditions which may negatively impact demand. Therefore in connection with the preparation of the financial statements for the three months ended June 30, 2020, given the pricing declines experienced in the second quarter of 2020, further muting of our near-term economic recovery assumptions, and market price performance of CVR |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | (7) Leases Lease Overview We lease certain pipelines, storage tanks, railcars, office space, land, and equipment across our refining, fertilizer and corporate operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Balance Sheet Summary as of June 30, 2020 and December 31, 2019 The following tables summarize the right of use asset and lease liability balances for the Company’s operating and finance leases at June 30, 2020 and December 31, 2019: (in millions) June 30, 2020 December 31, 2019 Operating Leases: ROU assets, net Pipeline and storage $ 17 $ 20 Railcars 10 12 Real estate and other 15 16 Lease liability Pipelines and storage $ 19 $ 22 Railcars 10 12 Real estate and other 13 14 (in millions) June 30, 2020 December 31, 2019 Finance Leases: ROU assets, net Pipeline and storage $ 28 $ 29 Real estate and other 23 24 Lease liability Pipelines and storage $ 39 $ 40 Real estate and other 24 25 Lease Expense Summary for the Three and Six Months Ended June 30, 2020 and 2019 We recognize lease expense on a straight-line basis over the lease term. For the three and six months ended June 30, 2020 and 2019, we recognized lease expense comprised of the following components: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Operating lease expense $ 5 $ 4 $ 9 $ 8 Finance lease expense: Amortization of ROU $ 1 $ 1 $ 3 $ 3 Interest expense on lease liability 2 1 3 3 Short-term lease expense, recognized within Direct operating expenses (exclusive of depreciation and amortization), was $2 million and $4 million for the three and six months ended June 30, 2020, respectively, and $2 million and $4 million for the three and six months ended June 30, 2019, respectively. Lease Terms and Discount Rates The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and liabilities: June 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating Leases 3.3 3.7 Finance Leases 8.5 9.0 Weighted-average discount rate Operating Leases 5.6 % 5.6 % Finance Leases 8.9 % 8.9 % Maturities of Lease Liabilities The following summarizes the remaining minimum lease payments through maturity of the Company’s right-of-use assets and liabilities at June 30, 2020: (in millions) Operating Leases Financing Remainder of 2020 $ 8 $ 5 2021 15 11 2022 11 11 2023 7 10 2024 4 10 Thereafter — 43 Total lease payments 45 90 Less: imputed interest (3) (27) Total lease liability $ 42 $ 63 On July 31, 2020, Coffeyville Resources Nitrogen Fertilizers, LLC (“CRNF”), a subsidiary of CVR Partners, and Messer LLC (“Messer”) entered into an On-Site Product Supply Agreement (the “Agreement”). Under the Agreement, among other obligations, Messer is obligated to supply and make certain capital improvements during the term of the Agreement, and CRNF is obligated to take as available and pay for, oxygen, nitrogen, and compressed dry air from Messer’s facility. This arrangement for CRNFs purchase of oxygen, nitrogen, and dry air from Messer does not meet the definition of a lease under ASC 842, as CRNF does not expect to receive substantially all of the output of Messer’s on-site production from its air separation unit over |
Leases | (7) Leases Lease Overview We lease certain pipelines, storage tanks, railcars, office space, land, and equipment across our refining, fertilizer and corporate operations. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Balance Sheet Summary as of June 30, 2020 and December 31, 2019 The following tables summarize the right of use asset and lease liability balances for the Company’s operating and finance leases at June 30, 2020 and December 31, 2019: (in millions) June 30, 2020 December 31, 2019 Operating Leases: ROU assets, net Pipeline and storage $ 17 $ 20 Railcars 10 12 Real estate and other 15 16 Lease liability Pipelines and storage $ 19 $ 22 Railcars 10 12 Real estate and other 13 14 (in millions) June 30, 2020 December 31, 2019 Finance Leases: ROU assets, net Pipeline and storage $ 28 $ 29 Real estate and other 23 24 Lease liability Pipelines and storage $ 39 $ 40 Real estate and other 24 25 Lease Expense Summary for the Three and Six Months Ended June 30, 2020 and 2019 We recognize lease expense on a straight-line basis over the lease term. For the three and six months ended June 30, 2020 and 2019, we recognized lease expense comprised of the following components: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Operating lease expense $ 5 $ 4 $ 9 $ 8 Finance lease expense: Amortization of ROU $ 1 $ 1 $ 3 $ 3 Interest expense on lease liability 2 1 3 3 Short-term lease expense, recognized within Direct operating expenses (exclusive of depreciation and amortization), was $2 million and $4 million for the three and six months ended June 30, 2020, respectively, and $2 million and $4 million for the three and six months ended June 30, 2019, respectively. Lease Terms and Discount Rates The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and liabilities: June 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating Leases 3.3 3.7 Finance Leases 8.5 9.0 Weighted-average discount rate Operating Leases 5.6 % 5.6 % Finance Leases 8.9 % 8.9 % Maturities of Lease Liabilities The following summarizes the remaining minimum lease payments through maturity of the Company’s right-of-use assets and liabilities at June 30, 2020: (in millions) Operating Leases Financing Remainder of 2020 $ 8 $ 5 2021 15 11 2022 11 11 2023 7 10 2024 4 10 Thereafter — 43 Total lease payments 45 90 Less: imputed interest (3) (27) Total lease liability $ 42 $ 63 On July 31, 2020, Coffeyville Resources Nitrogen Fertilizers, LLC (“CRNF”), a subsidiary of CVR Partners, and Messer LLC (“Messer”) entered into an On-Site Product Supply Agreement (the “Agreement”). Under the Agreement, among other obligations, Messer is obligated to supply and make certain capital improvements during the term of the Agreement, and CRNF is obligated to take as available and pay for, oxygen, nitrogen, and compressed dry air from Messer’s facility. This arrangement for CRNFs purchase of oxygen, nitrogen, and dry air from Messer does not meet the definition of a lease under ASC 842, as CRNF does not expect to receive substantially all of the output of Messer’s on-site production from its air separation unit over |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | (8) Other Current Liabilities Other current liabilities were as follows: (in millions) June 30, 2020 December 31, 2019 Accrued taxes other than income taxes $ 29 $ 28 Accrued interest 27 9 Personnel accruals 22 47 Operating lease liabilities 13 14 Accrued Renewable Fuel Standards (“RFS”) obligation 12 7 Current portion of long-term debt and finance lease obligations 7 5 Share-based compensation 6 6 Deferred revenue 3 28 Accrued income taxes 1 24 Accrued derivatives — 7 Other accrued expenses and liabilities 13 9 Total other current liabilities $ 133 $ 184 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Finance Lease Obligations | (9) Long-Term Debt and Finance Lease Obligations Long-term debt and finance lease obligations consist of the following: (in millions) June 30, 2020 December 31, 2019 CVR Partners: 9.25% Senior Secured Notes due June 2023 $ 645 $ 645 6.50% Senior Notes due April 2021, net of current portion (1) — 2 Unamortized discount and debt issuance costs (13) (15) Total CVR Partners debt $ 632 $ 632 CVR Refining: 6.50% Senior Notes due November 2022 (2) $ — $ 500 Finance lease obligations, net of current portion (3) 57 61 Unamortized debt issuance cost — (3) Total CVR Refining debt $ 57 $ 558 CVR Energy: 5.25% Senior Notes due February 2025 $ 600 $ — 5.75% Senior Notes due February 2028 400 — Unamortized debt issuance costs (6) — Total CVR Energy debt 994 — Total long-term debt and finance lease obligations, net of current portion $ 1,683 $ 1,190 Current portion of long-term debt and finance lease obligations (4) 7 5 Total long-term debt and finance lease obligations, including current portion $ 1,690 $ 1,195 (1) The 6.50% Notes, due April 2021, mature within 12 months, and, therefore, the outstanding balance of $2 million has been classified as short-term as of June 30, 2020. (2) On January 27, 2020, the Company redeemed all of the 6.50% Senior Notes due November 2022 (the “2022 Notes”) for a redemption price equal to 101.083%, plus accrued and unpaid interest on the redeemed notes. (3) Current portion of finance lease obligations recognized was approximately $5 million and $5 million as of June 30, 2020 and December 31, 2019, respectively. (4) Amounts reported in Other current liabilities. CVR Refining On January 27, 2020, the Company redeemed all of the outstanding 2022 Notes and settled accrued interest of approximately $8 million through the date of redemption. The redeemed notes were repurchased for approximately $505 million, or 101.083% of par value. As a result of this transaction, the Company recognized an $8 million loss on extinguishment of debt in the first quarter of 2020, which includes the call premium paid of $5 million and the write-off of unamortized deferred financing costs of $3 million. CVR Energy 2025 Notes and 2028 Notes - On January 27, 2020, CVR Energy completed a private offering of $600 million aggregate principal amount of 5.25% Senior Unsecured Notes due 2025 (the “2025 Notes”) and $400 million aggregate principal amount of 5.75% Senior Unsecured Notes due 2028 (the “2028 Notes” and, collectively with the 2025 Notes, the “Notes”). Interest on the Notes is payable semi-annually in arrears on February 15 and August 15 each year, commencing on August 15, 2020. The 2025 Notes mature on February 15, 2025, unless earlier redeemed or repurchased by the issuers. The 2028 Notes mature on February 15, 2028, unless earlier redeemed or repurchased by the issuers. The Notes are jointly and severally guaranteed on a senior unsecured basis by the wholly-owned subsidiaries of CVR Energy with the exception of CVR Partners and its subsidiaries and certain immaterial wholly-owned subsidiaries of CVR Energy. See Part II, Item 8 of the 2019 Form 10-K for further details of the Notes. Credit Facilities (in millions) Total Capacity Amount Borrowed as of June 30, 2020 Outstanding Letters of Credit Available Capacity as of June 30, 2020 Maturity Date CVR Partners: Asset Based (“AB”) Credit Facility (1) $ 46 $ — $ — $ 46 September 30, 2021 CVR Refining: Amended and Restated Asset Based (“Amended and Restated ABL”) Credit Facility (2) $ 400 $ — $ 7 $ 393 November 14, 2022 (1) Loans under the AB Credit Facility initially bear interest at an annual rate equal to (i) 2.00% plus LIBOR or (ii) 1.00% plus a base rate, subject to a 0.50% step-down based on the previous quarter’s excess availability. (2) Loans under the Amended and Restated ABL Credit Facility initially bear interest at an annual rate equal to (i) 1.50% plus LIBOR or (ii) 0.50% plus a base rate, subject to quarterly excess availability. Covenant Compliance The Company and its subsidiaries were in compliance with all covenants under their respective debt instruments as of June 30, 2020. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | (10) Revenue The following tables present the Company’s revenue, disaggregated by major product. The following tables include a reconciliation of the disaggregated revenue with the Company’s reportable segments. Three Months Ended June 30, 2020 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 300 $ — $ — $ 300 Distillates (1) 246 — — 246 Ammonia — 37 — 37 UAN — 55 — 55 Other urea products — 4 — 4 Freight revenue 4 7 — 11 Other (2) 12 2 (2) 12 Revenue from product sales 562 105 (2) 665 Crude oil sales 10 — — 10 Net sales $ 572 $ 105 $ (2) $ 675 Six Months Ended June 30, 2020 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 816 $ — $ — $ 816 Distillates (1) 720 — — 720 Ammonia — 51 — 51 UAN — 102 — 102 Other urea products — 7 — 7 Freight revenue 9 15 — 24 Other (2) 35 5 (3) 37 Revenue from product sales 1,580 180 (3) 1,757 Crude oil sales 48 — — 48 Other revenue (2) 1 — — 1 Net sales $ 1,629 $ 180 $ (3) $ 1,806 Three Months Ended June 30, 2019 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 816 $ — $ — $ 816 Distillates (1) 689 — — 689 Ammonia — 50 — 50 UAN — 74 — 74 Other urea products — 5 — 5 Freight revenue 6 7 — 13 Other (2) 34 — (3) 31 Revenue from product sales 1,545 136 (3) 1,678 Crude oil sales 6 — — 6 Other revenue (2) 1 2 — 3 Net sales $ 1,552 $ 138 $ (3) $ 1,687 Six Months Ended June 30, 2019 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 1,490 $ — $ — $ 1,490 Distillates (1) 1,344 — — 1,344 Ammonia — 63 — 63 UAN — 138 — 138 Other urea products — 10 — 10 Freight revenue 11 15 — 26 Other (2) 73 — (6) 67 Revenue from product sales 2,918 226 (6) 3,138 Crude oil sales 29 — — 29 Other revenue (2) 2 4 — 6 Net sales $ 2,949 $ 230 $ (6) $ 3,173 (1) Distillates consist primarily of diesel fuel, kerosene, and jet fuel. (2) Other revenue consists primarily of feedstock and asphalt sales. Petroleum Segment The Petroleum Segment’s revenue from product sales is recorded upon delivery to customers, which is the point at which title is transferred and the customer has assumed the risk of loss. This generally takes place as product passes into the pipeline, as a product transfer order occurs within a pipeline system, or as product enters equipment or locations supplied or designated by the customer. Qualifying excise and other taxes collected from the Petroleum Segment’s customers and remitted to governmental authorities are not included in reported revenues. Many of the Petroleum Segment’s contracts have index-based pricing which is considered variable consideration that should be estimated in determining the transaction price. The Petroleum Segment determined that it does not need to estimate the variable consideration because the uncertainty related to the consideration is resolved on the pricing date or the date when the product is delivered. The Petroleum Segment may incur broker commissions or transportation costs prior to product transfer on some of its sales. The Petroleum Segment expenses these broker costs, since the contract durations are less than a year. Transportation costs are accounted for as fulfillment costs and are expensed as incurred since they do not meet the requirement for capitalization. The Petroleum Segment’s contracts with its customers state the terms of the sale, including the description, quantity, and price of each product sold. Depending on the product sold, payment from customers is generally due in full within 2 to 32 days of product delivery or invoice date. The Petroleum Segment generally provides no warranty other than the implicit promise that goods delivered are free of liens and encumbrances and meet the agreed upon specification. The Petroleum Segment has determined that product returns or refunds are very rare and will account for them as they occur. Freight revenue recognized by the Petroleum Segment is primarily tariff and line loss charges rebilled to customers to reimburse the Petroleum Segment for expenses incurred from a pipeline operator. An offsetting expense is included in Cost of materials and other. Nitrogen Fertilizer Segment The Nitrogen Fertilizer Segment sells its products on a wholesale basis under a contract or by purchase order. The Nitrogen Fertilizer Segment’s contracts with customers generally contain fixed pricing and most have terms of less than one year. The Nitrogen Fertilizer Segment recognizes revenue at the point in time at which the customer obtains control of the product, which is generally upon delivery and acceptance by the customer. The customer acceptance point is stated in the contract and may be at one of the Nitrogen Fertilizer Segment’s manufacturing facilities, at one of the Nitrogen Fertilizer Segment’s off-site loading facilities, or at the customer’s designated facility. Freight revenue recognized by the Nitrogen Fertilizer Segment represents the pass-through finished goods delivery costs incurred prior to customer acceptance and is reimbursed by customers. An offsetting expense for freight is included in Cost of materials and other. Qualifying excise and other taxes collected from the Nitrogen Fertilizer Segment’s customers and remitted to governmental authorities are not included in reported revenues. Depending on the product sold and the type of contract, payments from customers are generally either due prior to delivery or within 15 to 30 days of product delivery. The Nitrogen Fertilizer Segment generally provides no warranty other than the implicit promise that goods delivered are free of liens and encumbrances and meet the agreed upon specifications. Product returns are rare, and as such, the Nitrogen Fertilizer Segment does not record a specific warranty reserve or consider activities related to such warranty, if any, to be a separate performance obligation. The Nitrogen Fertilizer Segment has an immaterial amount of variable consideration for contracts with an original duration of less than a year. A small portion of the Nitrogen Fertilizer Segment’s revenue includes contracts extending beyond one year, some of which contain variable pricing in which the majority of the variability is attributed to the market-based pricing. The Nitrogen Fertilizer Segment’s contracts do not contain a significant financing component. The Nitrogen Fertilizer Segment has an immaterial amount of fee-based revenue, included in other revenue in the table above, that is recognized based on the net amount of the proceeds received, consistent with prior accounting practice. Transaction price allocated to remaining performance obligations As of June 30, 2020, the Nitrogen Fertilizer Segment had approximately $8 million of remaining performance obligations for contracts with an original expected duration of more than one year. The Nitrogen Fertilizer Segment expects to recognize approximately $1 million of these performance obligations as revenue by the end of 2020, an additional $3 million in 2021, and the remaining balance thereafter. The Nitrogen Fertilizer Segment has elected to not disclose the amount of transaction price allocated to remaining performance obligations for contracts with an original expected duration of less than one year. The Nitrogen Fertilizer Segment has elected to not disclose variable consideration allocated to wholly unsatisfied performance obligations that are based on market prices that have not yet been determined. Contract balances The Nitrogen Fertilizer Segment’s deferred revenue is a contract liability that primarily relates to nitrogen fertilizer sales contracts requiring customer prepayment prior to product delivery to guarantee a price and supply of nitrogen fertilizer. Deferred revenue is recorded at the point in time in which a prepaid contract is legally enforceable and the associated right to consideration is unconditional prior to transferring product to the customer. An associated receivable is recorded for uncollected prepaid contract amounts. Contracts requiring prepayment are generally short-term in nature and, as discussed above, revenue is recognized at the point in time in which the customer obtains control of the product. A summary of the Nitrogen Fertilizer Segment’s deferred revenue activity during the six months ended June 30, 2020 is presented below: (in millions) Balance at December 31, 2019 $ 28 Add: New prepay contracts entered into during the period (1) 18 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period 27 Revenue recognized related to contracts entered into during the period 16 Balance at June 30, 2020 $ 3 (1) Includes $17 million where payment associated with prepaid contracts was collected as of June 30, 2020. |
Derivative Financial Instrument
Derivative Financial Instruments, Investments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments, Investments and Fair Value Measurements | (11) Derivative Financial Instruments, Investments and Fair Value Measurements Derivative Financial Instruments Our segments are subject to price fluctuations caused by supply conditions, weather, economic conditions, interest rate fluctuations, and other factors. To manage price risk on crude oil and other inventories and to fix margins on certain future production, the Petroleum Segment from time to time enters into various commodity derivative transactions. On a regular basis, the Company enters into commodity contracts with counterparties for the purchases or sale of crude oil, blendstocks, various finished products, and RINs. The contracts usually qualify for the normal purchase normal sale exception and follow the accrual method of accounting. All other derivative instruments are recorded at fair value using mark-to-market accounting on a periodic basis utilizing third-party pricing. The Petroleum Segment holds derivative instruments, such as exchange-traded crude oil futures and over-the-counter forward swap agreements, which it believes provide an economic hedge on future transactions, but such instruments are not designated as hedges under GAAP. There are no premiums paid or received at inception of the derivative contracts or upon settlement. The Petroleum Segment may enter into forward purchase or sale contracts associated with RINs. As of June 30, 2020, the Petroleum Segment had open fixed-price commitments to purchase a net 5 million RINs. Commodity derivatives include commodity swaps and forward purchase and sale commitments. There were no outstanding commodity swap positions as of June 30, 2020. There were approximately 2 million forward purchase commitments and 1 million forward sale commitments as of June 30, 2020. The following outlines the gains recognized on the Company’s derivative activities, all of which are recorded in Cost of materials and other on the condensed consolidated statements of operations: Gain on Derivatives Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Forward purchases and sales contracts, net $ 15 $ 3 $ 51 $ 20 Commodity swap instruments 4 — 4 — Futures contracts 1 1 10 — Total gain on derivatives, net $ 20 $ 4 $ 65 $ 20 The following outlines our open commodity derivative instruments, which are classified as Prepaid expenses and other current assets or Other current liabilities on the condensed consolidated balance sheets: Open Commodity Derivative Instruments (in millions of barrels) June 30, 2020 December 31, 2019 Forward purchases and sales contracts, net: Canadian crude oil 3 5 Offsetting Assets and Liabilities The Company elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty. These amounts are recognized as current assets and current liabilities within the Prepaid expenses and other current assets and Other current liabilities financial statement line items, respectively, in the condensed consolidated balance sheets as follows: Derivative Assets Derivative Liabilities (in millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Commodity derivatives $ 6 $ 3 $ (1) $ (11) Less: Counterparty netting (1) (3) 1 3 Total net fair value of derivatives $ 5 $ — $ — $ (8) Investments Investments consist of equity securities, which are reported at fair value in our condensed consolidated balance sheets. These investments are considered trading securities. Investment income from marketable securities consists of the following: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Dividend income $ 3 $ — $ 4 $ — Unrealized gain 18 — 48 — Investment income from marketable securities $ 21 $ — $ 52 $ — Fair Value Measurements In accordance with FASB ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC 820”), the Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business. ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1 — Quoted prices in active markets for identical assets or liabilities • Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) • Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value) The following tables set forth the assets and liabilities measured or disclosed at fair value on a recurring basis, by input level, as of June 30, 2020 and December 31, 2019: June 30, 2020 (in millions) Level 1 Level 2 Level 3 Total Location and Description Prepaid expenses and other current assets (investments) $ 188 $ — $ — $ 188 Prepaid expenses and other current assets (commodity derivatives) — 6 — 6 Total Assets 188 6 — 194 Other current liabilities (RFS obligation) — (12) — (12) Long-term debt and finance lease obligations (senior notes) — (1,534) — (1,534) Total Liabilities $ — $ (1,546) $ — $ (1,546) December 31, 2019 (in millions) Level 1 Level 2 Level 3 Total Location and Description Other current liabilities (commodity derivatives) $ — $ (8) $ — $ (8) Other current liabilities (RFS obligation) — (7) — (7) Long-term debt and finance lease obligations (senior notes) — (1,180) — (1,180) Total Liabilities $ — $ (1,195) $ — $ (1,195) As of June 30, 2020 and December 31, 2019, the only financial assets and liabilities that are measured at fair value on a recurring basis are the Company’s cash equivalents, investments, derivative instruments, long-term debt, and the RFS |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | (12) Share-Based Compensation A summary of compensation expense during the three and six months ended June 30, 2020 and 2019 is presented below: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 CVR Refining - Phantom Unit Awards — 1 $ — $ 2 CVR Partners LTIP - Phantom Unit Awards — 1 — 2 Incentive Unit Awards 2 4 1 7 Total Share-Based Compensation Expense $ 2 $ 6 $ 1 $ 11 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (13) Commitments and Contingencies Except as described below, there have been no material changes in the Company’s commitments and contingencies disclosed in the 2019 Form 10-K. In the ordinary course of business, the Company may become party to lawsuits, administrative proceedings, and governmental investigations, including environmental, regulatory, and other matters. The outcome of these matters cannot always be predicted accurately, but the Company accrues liabilities for these matters if the Company has determined that it is probable a loss has been incurred and the loss can be reasonably estimated. While it is not possible to predict the outcome of such proceedings, if one or more of them were decided against us, the Company believes there would be no material impact on its consolidated financial statements. The Company is continuing to evaluate its contractual arrangements and customer, vendor, and supplier relationships to determine whether and to what extent, if any, the impacts of the COVID-19 pandemic or recent crude oil or refined product price volatility will impair or excuse the performance of the Company or its subsidiaries or their customers, vendors, or suppliers under existing agreements. As of June 30, 2020, the Company had not experienced a material financial impact from any actual or threatened impairment of or excuse in its or others’ performance under such agreements. Crude Oil Supply Agreement On August 31, 2012, an indirect, wholly-owned subsidiary of the Petroleum Segment and Vitol Inc. (“Vitol”) entered into an Amended and Restated Crude Oil Supply Agreement (as amended, the “Crude Oil Supply Agreement”). Under the Crude Oil Supply Agreement, Vitol supplies the Petroleum Segment with crude oil and intermediation logistics helping to reduce the amount of inventory held at certain locations and mitigate crude oil pricing risk. Volumes contracted under the Crude Oil Supply Agreement, as a percentage of the total crude oil purchases (in barrels), was approximately 38% and 40% for the three months ended June 30, 2020 and 2019, respectively, and 28% and 40% for the six months ended June 30, 2020 and 2019, respectively. The Crude Oil Supply Agreement, which currently extends through December 31, 2021, automatically renews for successive one-year terms (each such term, a “Renewal Term”) unless either party provides the other with notice of nonrenewal at least 180 days prior to expiration of any Renewal Term. RFS The Petroleum Segment is subject to the RFS of the Environmental Protection Agency (“EPA”) that require refiners to either blend renewable fuels in with their transportation fuels or purchase renewable fuel credits, known as RINs, in lieu of blending. The Petroleum Segment is not able to blend the substantial majority of its transportation fuels and has to purchase RINs on the open market, and may have to obtain waiver credits for cellulosic biofuels from the EPA, in order to comply with the RFS. For the three months ended June 30, 2020 and 2019, the Company recognized expense of approximately $16 million and $21 million, respectively, and for the six months ended June 30, 2020 and 2019, the Company recognized expense of approximately $35 million and $33 million, respectively, for the Petroleum Segment’s compliance with the RFS. The recognized amounts are included within Cost of materials and other in the condensed consolidated statements of operations. The Company’s costs to comply with the RFS include the recognition of the Petroleum Segment’s biofuel blending obligation based on the purchased cost of RINs or the fair value of the obligation for which RINs have not been purchased, based on market prices at each reporting date, and the valuation change of RINs acquired in excess of its RFS obligation as of the reporting date. Tax Matters On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), an economic stimulus package in response to the COVID-19 pandemic. The CARES Act contains several corporate income tax provisions, including a five-year carry back of net operating losses generated in tax years 2018, 2019, and 2020, an increase in the amount of deductible interest and deferral of certain employer payroll taxes otherwise required to be paid in 2020. The Company will continue to monitor the impact the CARES Act and any related legislation will have on its current and certain prior period tax returns. Litigation The U.S. Attorney’s office for the Southern District of New York contacted CVR Energy in September 2017 seeking production of information pertaining to CVR Refining’s, CVR Energy’s and Mr. Carl C. Icahn’s activities relating to the RFS and Mr. Icahn’s former role as an advisor to the President of the United States. CVR Energy cooperated with the request and provided information in response to the subpoena. The U.S. Attorney’s office has not made any claims or allegations against CVR Energy or Mr. Icahn. CVR Energy believes it maintains a strong compliance program and, while no assurances can be made, CVR Energy does not believe this inquiry will have a material impact on its business, financial condition, results of operations or cash flows. In June 2020, in advance of the June 30, 2020 expiration of the tolling agreement previously entered into by Coffeyville Resources Refining & Marketing, LLC (“CRRM”) with the United States Department of Justice (“DOJ”) (on behalf of the EPA) and the Kansas Department of Health and Environment (“KDHE”), CRRM received a demand letter from the EPA and KDHE alleging violations of the Clean Air Act (“CAA”) and CRRM’s 2012 Consent Decree (“CD”) relating to CRRM’s Coffeyville refinery (the “Coffeyville Refinery”), and seeking certain penalties in connection therewith. CRRM is evaluating this matter, including the dispute resolution and related provisions of the CD regarding such allegations. At this time, this matter has not had a material impact on the Company’s financial position, results of operations, or cash flows, and the Company cannot yet reasonably estimate the full impact that may result from this matter or any subsequent enforcement or litigation relating thereto. In April 2020, the U.S. Court of Appeals for the 10 th Circuit (the “10 th Circuit”) denied the petitions of Wynnewood Refining Company, LLC (“WRC”) and others seeking rehearing en banc of the January 2020 decision of a three-judge panel of the 10 th Circuit vacating three small refinery exemptions (“SREs”) under the RFS program under the CAA, including one issued to WRC’s Wynnewood refinery (the “Wynnewood Refinery”) for 2017, and remanding the matter back to the EPA for further proceedings. WRC currently intends to file a writ of certiorari with the Supreme Court of the United States (the “Supreme Court”) on or before September 4, 2020. As it is not yet clear whether this matter will be heard by the Supreme Court, or what steps the EPA will take with respect to SREs, we cannot currently estimate the outcome, impact, or timing of resolution of this matter. On April 6, 2020, a lawsuit was filed in the United States District Court for the Southern District of New York against the Company, CVR Refining and its general partner, CVR Refining Holdings, IEP, and the Company’s Chief Executive Officer by purported former unitholders of CVR Refining on behalf of themselves and an alleged class of similarly situated unitholders relating to the Company’s exercise of the call option under the CVR Refining Amended and Restated Agreement of Limited Partnership assigned to it by CVR Refining’s general partner. This lawsuit, which primarily alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 thereunder and seeks monetary damages and attorney’s fees, among other remedies, is in addition to the nine lawsuits consolidated in the Court of Chancery of the State of Delaware related to the Company’s exercise of the call option. The Company believes all of these lawsuits are without merit and intends to vigorously defend against them. As these lawsuits are in the early stages of litigation, the Company cannot determine at this time the outcome of the lawsuits, including whether the outcome would have a material impact on the Company’s financial position, results of operations, or cash flows. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | (14) Business Segments CVR Energy’s revenues are derived from two operating segments: the Petroleum Segment and the Nitrogen Fertilizer Segment. The Company evaluates the performance of its segments based primarily on segment operating income and Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”). For the purposes of the operating segment disclosure, the Company presents operating income as it is the most comparable measure to the amounts presented on the condensed consolidated statements of operations. The other amounts reflect intercompany eliminations, corporate cash and cash equivalents, income tax activities, and other corporate activities that are not allocated to the operating segments. The following table summarizes certain operating results and capital expenditures information by segment: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Net sales Petroleum $ 572 $ 1,552 $ 1,629 $ 2,949 Nitrogen Fertilizer 105 138 180 230 Other (2) (3) (3) (6) Total $ 675 $ 1,687 $ 1,806 $ 3,173 Operating income (loss) Petroleum $ 5 $ 163 $ (122) $ 319 Nitrogen Fertilizer (26) 35 (31) 44 Other (5) (6) (7) (11) Total (26) 192 (160) 352 Interest expense, net (31) (26) (67) (52) Investment income from marketable securities 21 — 52 — Other (loss) income, net (1) 3 — 6 (Loss) income before income taxes $ (37) $ 169 $ (175) $ 306 Depreciation and amortization Petroleum $ 50 $ 52 $ 99 $ 101 Nitrogen Fertilizer 24 25 39 42 Other — 1 — 2 Total $ 74 $ 78 $ 138 $ 145 Capital expenditures (1) Petroleum $ 22 $ 17 $ 63 $ 38 Nitrogen Fertilizer 3 2 8 5 Other 1 3 2 3 Total $ 26 $ 22 $ 73 $ 46 The following table summarizes total assets by segment: (in millions) June 30, 2020 December 31, 2019 Petroleum $ 2,872 $ 3,187 Nitrogen Fertilizer 1,043 1,138 Other (2) 13 (420) Total Assets $ 3,928 $ 3,905 (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. (2) Includes elimination of intercompany assets and net cash proceeds from the Notes issued during the six months ended June 30, 2020. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (15) Supplemental Cash Flow Information Cash flows related to interest, leases, and capital expenditures included in accounts payable were as follows: Six Months Ended (in millions) 2020 2019 Supplemental disclosures: Cash (received for income taxes, net of payments) paid for income taxes, net of refunds $ (4) $ 32 Cash paid for interest 49 52 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 8 8 Operating cash flows from finance leases 3 3 Financing cash flows from finance leases 3 3 Non-cash investing activities: Change in capital expenditures included in accounts payable (1) (4) (9) (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (16) Related Party Transactions Activity associated with the Company’s related party arrangements for the three and six months ended June 30, 2020 and 2019 is summarized below: Expenses from related parties Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Cost of materials and other Joint Venture Transportation Agreement: Enable $ 3 $ 3 $ 6 $ 5 Payments made Dividends (1) $ 28 $ 53 85 106 (1) See below for a summary of the dividends paid to IEP for the six months ended June 30, 2020 and year ended December 31, 2019. Agency Arrangement with IEP On February 4, 2020, CVR Energy and Icahn Enterprises Holdings LP (“IEH”), a subsidiary of IEP, entered into an agency arrangement wherein IEH would act as the agent for CVR Energy. Under this arrangement, the Company invested approximately $140 million in certain marketable securities of Delek US Holdings, Inc. (“Delek”) (NYSE ticker symbol: DK) and could make additional investments in Delek or invest in other public companies in the future under this arrangement. The Company reimbursed IEH for all costs associated with the initial purchase and did not incur any additional fees as part of this transaction. Property Exchange On October 22, 2019, the Audit Committee of CVR Energy’s board of directors (the “Board”) and the Conflicts Committee of the UAN GP Board each agreed to authorize the exchange of certain parcels of property owned by CRRM with an equal number of parcels owned by CRNF, all located in Coffeyville, Kansas (the “Property Exchange”). On February 19, 2020, CRRM and CRNF executed the Property Exchange agreement. This Property Exchange will enable each such subsidiary to create a more usable, contiguous parcel of land near its own operating footprint. This transaction resulted in no net impact on the Company’s condensed consolidated financial statements. Dividends to CVR Energy Stockholders Dividends, if any, including the payment, amount and timing thereof, are subject to change at the discretion of the Board. No dividends were declared for the second quarter of 2020. The following tables present dividends paid to the Company’s stockholders, including IEP, during 2020 and 2019 (amounts presented in tables below may not add to totals presented due to rounding). Dividends Paid (in millions) Related Period Date Paid Dividend Per Share Stockholders IEP Total 2019 - 4th Quarter March 9, 2020 $ 0.80 $ 23 $ 57 $ 80 2020 - 1st Quarter May 26, 2020 0.40 12 28 40 Total $ 1.20 $ 35 $ 85 $ 121 Dividends Paid (in millions) Related Period Date Paid Dividend Per Share Stockholders IEP Total 2018 - 4th Quarter March 11, 2019 $ 0.75 $ 22 $ 53 $ 75 2019 - 1st Quarter May 13, 2019 0.75 22 53 75 2019 - 2nd Quarter August 12, 2019 0.75 22 53 75 2019 - 3rd Quarter November 11, 2019 0.80 23 57 80 Total $ 3.05 $ 90 $ 217 $ 307 Distributions to CVR Partners’ Unitholders Distributions, if any, including the payment, amount and timing thereof, are subject to change at the discretion of the UAN GP Board. There were no distributions paid by CVR Partners during the six months ended June 30, 2020 related to the fourth quarter of 2019 or first quarter of 2020, and no distributions were declared for the second quarter of 2020. The following table presents distributions paid by CVR Partners to its unitholders, including amounts paid to CVR Energy, during 2019. Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2018 - 4th Quarter March 11, 2019 $ 0.12 $ 8,924 $ 4,670 $ 13,594 2019 - 1st Quarter May 13, 2019 0.07 5,205 2,724 7,929 2019 - 2nd Quarter August 12, 2019 0.14 10,411 5,449 15,860 2019 - 3rd Quarter November 11, 2019 0.07 5,205 2,724 7,930 Total $ 0.40 $ 29,745 $ 15,567 $ 45,313 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). These condensed consolidated financial statements should be read in conjunction with the December 31, 2019 audited consolidated financial statements and notes thereto included in CVR Energy’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). Our condensed consolidated financial statements include the consolidated results of CVR Partners, which is defined as a variable interest entity. In the opinion of the Company’s management, the accompanying condensed consolidated financial statements reflect all adjustments that are necessary for fair presentation of the financial position and results of operations of the Company for the periods presented. Such adjustments are of a normal recurring nature, unless otherwise disclosed. Certain reclassifications have been made within the condensed consolidated balance sheets as of December 31, 2019 and the condensed consolidated statements of operations for the three and six months ended June 30, 2019. Catalyst inventory with a value of $17 million as of December 31, 2019 was reclassified during the first quarter of 2020 to Other long-term assets to conform to current presentation. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Results of operations and cash flows for the interim periods presented are not necessarily indicative of the results that will be realized for the year ending December 31, 2020 or any other interim or annual period. |
Recent Accounting Pronouncements and Accounting Changes | Recent Accounting Pronouncements - Adoption of Credit Losses Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326). The ASU replaces the incurred loss model with a current expected credit loss model for more timely recognition of expected impairment losses for most financial assets and certain other instruments that are not measured at fair value through net income. Effective January 1, 2020, we adopted this ASU with no material impact on the Company’s consolidated financial position or results of operations. Recent Accounting Pronouncements - Adoption of Fair Value Measurement Standard In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). The ASU eliminates such disclosures as the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy. Certain disclosures are required to be applied on a retrospective basis and others on a prospective basis. Effective January 1, 2020, we adopted this ASU with no material impact on the Company’s disclosures. New Accounting Standards Issued But Not Yet Implemented In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and modifies other areas of the topic to clarify the application of GAAP. Certain amendments within the standard are required to be applied on a retrospective basis and others on a prospective basis. This standard is effective for the Company beginning January 1, 2021, with early adoption permitted. The Company is evaluating the effect of adopting this new accounting guidance on its consolidated financial statements, but does not currently expect adoption will have a material impact on the Company’s consolidated financial position or results of operations. The Company does not intend to early adopt this ASU. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). This ASU was issued because, by the end of 2021, banks will no longer be required to report information that is used to determine London Interbank Offered Rate (“LIBOR”), which is used globally by all types of entities. As a result, LIBOR could be discontinued, as well as other interest |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventories | Inventories consisted of the following: (in millions) June 30, 2020 December 31, 2019 Finished goods $ 100 $ 177 Raw materials 73 112 In-process inventories 15 18 Parts, supplies and other 64 66 Total inventories $ 252 $ 373 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Property, plant and equipment consisted of the following: (in millions) June 30, 2020 December 31, 2019 Machinery and equipment $ 3,877 $ 3,829 Buildings and improvements 88 87 ROU finance leases 55 57 Land and improvements 47 46 Furniture and fixtures 37 35 Construction in progress 92 95 Other 14 14 4,210 4,163 Less: Accumulated depreciation 1,916 1,827 Total property, plant and equipment, net $ 2,294 $ 2,336 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of right of use asset and lease liability balances for operating and finance leases | The following tables summarize the right of use asset and lease liability balances for the Company’s operating and finance leases at June 30, 2020 and December 31, 2019: (in millions) June 30, 2020 December 31, 2019 Operating Leases: ROU assets, net Pipeline and storage $ 17 $ 20 Railcars 10 12 Real estate and other 15 16 Lease liability Pipelines and storage $ 19 $ 22 Railcars 10 12 Real estate and other 13 14 (in millions) June 30, 2020 December 31, 2019 Finance Leases: ROU assets, net Pipeline and storage $ 28 $ 29 Real estate and other 23 24 Lease liability Pipelines and storage $ 39 $ 40 Real estate and other 24 25 |
Lease expense, lease terms, and discount rates | For the three and six months ended June 30, 2020 and 2019, we recognized lease expense comprised of the following components: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Operating lease expense $ 5 $ 4 $ 9 $ 8 Finance lease expense: Amortization of ROU $ 1 $ 1 $ 3 $ 3 Interest expense on lease liability 2 1 3 3 The following outlines the remaining lease terms and discount rates used in the measurement of the Company’s ROU assets and liabilities: June 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) Operating Leases 3.3 3.7 Finance Leases 8.5 9.0 Weighted-average discount rate Operating Leases 5.6 % 5.6 % Finance Leases 8.9 % 8.9 % |
Summary of remaining minimum lease payments for operating leases | The following summarizes the remaining minimum lease payments through maturity of the Company’s right-of-use assets and liabilities at June 30, 2020: (in millions) Operating Leases Financing Remainder of 2020 $ 8 $ 5 2021 15 11 2022 11 11 2023 7 10 2024 4 10 Thereafter — 43 Total lease payments 45 90 Less: imputed interest (3) (27) Total lease liability $ 42 $ 63 |
Summary of remaining minimum lease payments for finance leases | The following summarizes the remaining minimum lease payments through maturity of the Company’s right-of-use assets and liabilities at June 30, 2020: (in millions) Operating Leases Financing Remainder of 2020 $ 8 $ 5 2021 15 11 2022 11 11 2023 7 10 2024 4 10 Thereafter — 43 Total lease payments 45 90 Less: imputed interest (3) (27) Total lease liability $ 42 $ 63 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other current liabilities | Other current liabilities were as follows: (in millions) June 30, 2020 December 31, 2019 Accrued taxes other than income taxes $ 29 $ 28 Accrued interest 27 9 Personnel accruals 22 47 Operating lease liabilities 13 14 Accrued Renewable Fuel Standards (“RFS”) obligation 12 7 Current portion of long-term debt and finance lease obligations 7 5 Share-based compensation 6 6 Deferred revenue 3 28 Accrued income taxes 1 24 Accrued derivatives — 7 Other accrued expenses and liabilities 13 9 Total other current liabilities $ 133 $ 184 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt and finance lease obligations | Long-term debt and finance lease obligations consist of the following: (in millions) June 30, 2020 December 31, 2019 CVR Partners: 9.25% Senior Secured Notes due June 2023 $ 645 $ 645 6.50% Senior Notes due April 2021, net of current portion (1) — 2 Unamortized discount and debt issuance costs (13) (15) Total CVR Partners debt $ 632 $ 632 CVR Refining: 6.50% Senior Notes due November 2022 (2) $ — $ 500 Finance lease obligations, net of current portion (3) 57 61 Unamortized debt issuance cost — (3) Total CVR Refining debt $ 57 $ 558 CVR Energy: 5.25% Senior Notes due February 2025 $ 600 $ — 5.75% Senior Notes due February 2028 400 — Unamortized debt issuance costs (6) — Total CVR Energy debt 994 — Total long-term debt and finance lease obligations, net of current portion $ 1,683 $ 1,190 Current portion of long-term debt and finance lease obligations (4) 7 5 Total long-term debt and finance lease obligations, including current portion $ 1,690 $ 1,195 (1) The 6.50% Notes, due April 2021, mature within 12 months, and, therefore, the outstanding balance of $2 million has been classified as short-term as of June 30, 2020. (2) On January 27, 2020, the Company redeemed all of the 6.50% Senior Notes due November 2022 (the “2022 Notes”) for a redemption price equal to 101.083%, plus accrued and unpaid interest on the redeemed notes. (3) Current portion of finance lease obligations recognized was approximately $5 million and $5 million as of June 30, 2020 and December 31, 2019, respectively. (4) Amounts reported in Other current liabilities. Credit Facilities (in millions) Total Capacity Amount Borrowed as of June 30, 2020 Outstanding Letters of Credit Available Capacity as of June 30, 2020 Maturity Date CVR Partners: Asset Based (“AB”) Credit Facility (1) $ 46 $ — $ — $ 46 September 30, 2021 CVR Refining: Amended and Restated Asset Based (“Amended and Restated ABL”) Credit Facility (2) $ 400 $ — $ 7 $ 393 November 14, 2022 (1) Loans under the AB Credit Facility initially bear interest at an annual rate equal to (i) 2.00% plus LIBOR or (ii) 1.00% plus a base rate, subject to a 0.50% step-down based on the previous quarter’s excess availability. (2) Loans under the Amended and Restated ABL Credit Facility initially bear interest at an annual rate equal to (i) 1.50% plus LIBOR or (ii) 0.50% plus a base rate, subject to quarterly excess availability. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue disaggregated by major product | The following tables present the Company’s revenue, disaggregated by major product. The following tables include a reconciliation of the disaggregated revenue with the Company’s reportable segments. Three Months Ended June 30, 2020 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 300 $ — $ — $ 300 Distillates (1) 246 — — 246 Ammonia — 37 — 37 UAN — 55 — 55 Other urea products — 4 — 4 Freight revenue 4 7 — 11 Other (2) 12 2 (2) 12 Revenue from product sales 562 105 (2) 665 Crude oil sales 10 — — 10 Net sales $ 572 $ 105 $ (2) $ 675 Six Months Ended June 30, 2020 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 816 $ — $ — $ 816 Distillates (1) 720 — — 720 Ammonia — 51 — 51 UAN — 102 — 102 Other urea products — 7 — 7 Freight revenue 9 15 — 24 Other (2) 35 5 (3) 37 Revenue from product sales 1,580 180 (3) 1,757 Crude oil sales 48 — — 48 Other revenue (2) 1 — — 1 Net sales $ 1,629 $ 180 $ (3) $ 1,806 Three Months Ended June 30, 2019 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 816 $ — $ — $ 816 Distillates (1) 689 — — 689 Ammonia — 50 — 50 UAN — 74 — 74 Other urea products — 5 — 5 Freight revenue 6 7 — 13 Other (2) 34 — (3) 31 Revenue from product sales 1,545 136 (3) 1,678 Crude oil sales 6 — — 6 Other revenue (2) 1 2 — 3 Net sales $ 1,552 $ 138 $ (3) $ 1,687 Six Months Ended June 30, 2019 (in millions) Petroleum Nitrogen Fertilizer Other / Eliminations Consolidated Major Product Gasoline $ 1,490 $ — $ — $ 1,490 Distillates (1) 1,344 — — 1,344 Ammonia — 63 — 63 UAN — 138 — 138 Other urea products — 10 — 10 Freight revenue 11 15 — 26 Other (2) 73 — (6) 67 Revenue from product sales 2,918 226 (6) 3,138 Crude oil sales 29 — — 29 Other revenue (2) 2 4 — 6 Net sales $ 2,949 $ 230 $ (6) $ 3,173 (1) Distillates consist primarily of diesel fuel, kerosene, and jet fuel. |
Summary of deferred revenue activity | A summary of the Nitrogen Fertilizer Segment’s deferred revenue activity during the six months ended June 30, 2020 is presented below: (in millions) Balance at December 31, 2019 $ 28 Add: New prepay contracts entered into during the period (1) 18 Less: Revenue recognized that was included in the contract liability balance at the beginning of the period 27 Revenue recognized related to contracts entered into during the period 16 Balance at June 30, 2020 $ 3 (1) Includes $17 million where payment associated with prepaid contracts was collected as of June 30, 2020. |
Derivative Financial Instrume_2
Derivative Financial Instruments, Investments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Gain on derivatives | The following outlines the gains recognized on the Company’s derivative activities, all of which are recorded in Cost of materials and other on the condensed consolidated statements of operations: Gain on Derivatives Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Forward purchases and sales contracts, net $ 15 $ 3 $ 51 $ 20 Commodity swap instruments 4 — 4 — Futures contracts 1 1 10 — Total gain on derivatives, net $ 20 $ 4 $ 65 $ 20 |
Schedule of open commodity derivative instruments | The following outlines our open commodity derivative instruments, which are classified as Prepaid expenses and other current assets or Other current liabilities on the condensed consolidated balance sheets: Open Commodity Derivative Instruments (in millions of barrels) June 30, 2020 December 31, 2019 Forward purchases and sales contracts, net: Canadian crude oil 3 5 |
Derivative offsetting assets | The Company elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty. These amounts are recognized as current assets and current liabilities within the Prepaid expenses and other current assets and Other current liabilities financial statement line items, respectively, in the condensed consolidated balance sheets as follows: Derivative Assets Derivative Liabilities (in millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Commodity derivatives $ 6 $ 3 $ (1) $ (11) Less: Counterparty netting (1) (3) 1 3 Total net fair value of derivatives $ 5 $ — $ — $ (8) |
Derivative offsetting liabilities | The Company elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty. These amounts are recognized as current assets and current liabilities within the Prepaid expenses and other current assets and Other current liabilities financial statement line items, respectively, in the condensed consolidated balance sheets as follows: Derivative Assets Derivative Liabilities (in millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Commodity derivatives $ 6 $ 3 $ (1) $ (11) Less: Counterparty netting (1) (3) 1 3 Total net fair value of derivatives $ 5 $ — $ — $ (8) |
Components of investment income from marketable securities | Investments consist of equity securities, which are reported at fair value in our condensed consolidated balance sheets. These investments are considered trading securities. Investment income from marketable securities consists of the following: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Dividend income $ 3 $ — $ 4 $ — Unrealized gain 18 — 48 — Investment income from marketable securities $ 21 $ — $ 52 $ — |
Assets and liabilities measured at fair value on a recurring basis | The following tables set forth the assets and liabilities measured or disclosed at fair value on a recurring basis, by input level, as of June 30, 2020 and December 31, 2019: June 30, 2020 (in millions) Level 1 Level 2 Level 3 Total Location and Description Prepaid expenses and other current assets (investments) $ 188 $ — $ — $ 188 Prepaid expenses and other current assets (commodity derivatives) — 6 — 6 Total Assets 188 6 — 194 Other current liabilities (RFS obligation) — (12) — (12) Long-term debt and finance lease obligations (senior notes) — (1,534) — (1,534) Total Liabilities $ — $ (1,546) $ — $ (1,546) December 31, 2019 (in millions) Level 1 Level 2 Level 3 Total Location and Description Other current liabilities (commodity derivatives) $ — $ (8) $ — $ (8) Other current liabilities (RFS obligation) — (7) — (7) Long-term debt and finance lease obligations (senior notes) — (1,180) — (1,180) Total Liabilities $ — $ (1,195) $ — $ (1,195) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share-based compensation expense | A summary of compensation expense during the three and six months ended June 30, 2020 and 2019 is presented below: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 CVR Refining - Phantom Unit Awards — 1 $ — $ 2 CVR Partners LTIP - Phantom Unit Awards — 1 — 2 Incentive Unit Awards 2 4 1 7 Total Share-Based Compensation Expense $ 2 $ 6 $ 1 $ 11 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Operating results and capital expenditures information by segment | The following table summarizes certain operating results and capital expenditures information by segment: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Net sales Petroleum $ 572 $ 1,552 $ 1,629 $ 2,949 Nitrogen Fertilizer 105 138 180 230 Other (2) (3) (3) (6) Total $ 675 $ 1,687 $ 1,806 $ 3,173 Operating income (loss) Petroleum $ 5 $ 163 $ (122) $ 319 Nitrogen Fertilizer (26) 35 (31) 44 Other (5) (6) (7) (11) Total (26) 192 (160) 352 Interest expense, net (31) (26) (67) (52) Investment income from marketable securities 21 — 52 — Other (loss) income, net (1) 3 — 6 (Loss) income before income taxes $ (37) $ 169 $ (175) $ 306 Depreciation and amortization Petroleum $ 50 $ 52 $ 99 $ 101 Nitrogen Fertilizer 24 25 39 42 Other — 1 — 2 Total $ 74 $ 78 $ 138 $ 145 Capital expenditures (1) Petroleum $ 22 $ 17 $ 63 $ 38 Nitrogen Fertilizer 3 2 8 5 Other 1 3 2 3 Total $ 26 $ 22 $ 73 $ 46 The following table summarizes total assets by segment: (in millions) June 30, 2020 December 31, 2019 Petroleum $ 2,872 $ 3,187 Nitrogen Fertilizer 1,043 1,138 Other (2) 13 (420) Total Assets $ 3,928 $ 3,905 (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. (2) Includes elimination of intercompany assets and net cash proceeds from the Notes issued during the six months ended June 30, 2020. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash flows related to interest, leases, and capital expenditures included in accounts payable | Cash flows related to interest, leases, and capital expenditures included in accounts payable were as follows: Six Months Ended (in millions) 2020 2019 Supplemental disclosures: Cash (received for income taxes, net of payments) paid for income taxes, net of refunds $ (4) $ 32 Cash paid for interest 49 52 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 8 8 Operating cash flows from finance leases 3 3 Financing cash flows from finance leases 3 3 Non-cash investing activities: Change in capital expenditures included in accounts payable (1) (4) (9) (1) Capital expenditures are shown exclusive of capitalized turnaround expenditures. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Activity associated with the Company’s related party arrangements for the three and six months ended June 30, 2020 and 2019 is summarized below: Expenses from related parties Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Cost of materials and other Joint Venture Transportation Agreement: Enable $ 3 $ 3 $ 6 $ 5 Payments made Dividends (1) $ 28 $ 53 85 106 (1) See below for a summary of the dividends paid to IEP for the six months ended June 30, 2020 and year ended December 31, 2019. |
Summary of dividends paid | The following tables present dividends paid to the Company’s stockholders, including IEP, during 2020 and 2019 (amounts presented in tables below may not add to totals presented due to rounding). Dividends Paid (in millions) Related Period Date Paid Dividend Per Share Stockholders IEP Total 2019 - 4th Quarter March 9, 2020 $ 0.80 $ 23 $ 57 $ 80 2020 - 1st Quarter May 26, 2020 0.40 12 28 40 Total $ 1.20 $ 35 $ 85 $ 121 Dividends Paid (in millions) Related Period Date Paid Dividend Per Share Stockholders IEP Total 2018 - 4th Quarter March 11, 2019 $ 0.75 $ 22 $ 53 $ 75 2019 - 1st Quarter May 13, 2019 0.75 22 53 75 2019 - 2nd Quarter August 12, 2019 0.75 22 53 75 2019 - 3rd Quarter November 11, 2019 0.80 23 57 80 Total $ 3.05 $ 90 $ 217 $ 307 The following table presents distributions paid by CVR Partners to its unitholders, including amounts paid to CVR Energy, during 2019. Distributions Paid (in thousands) Related Period Date Paid Distribution Per Public Unitholders CVR Energy Total 2018 - 4th Quarter March 11, 2019 $ 0.12 $ 8,924 $ 4,670 $ 13,594 2019 - 1st Quarter May 13, 2019 0.07 5,205 2,724 7,929 2019 - 2nd Quarter August 12, 2019 0.14 10,411 5,449 15,860 2019 - 3rd Quarter November 11, 2019 0.07 5,205 2,724 7,930 Total $ 0.40 $ 29,745 $ 15,567 $ 45,313 |
Organization and Nature of Bu_2
Organization and Nature of Business (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2019 | Jun. 30, 2020 | May 06, 2020 | |
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Repurchase of CVR Partners' common units on open market and change in ownership while maintaining control | $ 335,000,000 | ||||
Recognition of deferred tax liability from change in book versus tax basis in CVR Partners | $ 400,000 | $ 400,000 | $ 400,000 | ||
Additional Paid-In Capital | |||||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Repurchase of CVR Partners' common units on open market and change in ownership while maintaining control | 1,200,000 | 1,000,000 | |||
Noncontrolling Interest | |||||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Repurchase of CVR Partners' common units on open market and change in ownership while maintaining control | (1,600,000) | $ 334,000,000 | |||
CVR Partners | |||||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Percentage of interest held by the public | 65.00% | ||||
Unit Repurchase Program, authorized amount | $ 10,000,000 | ||||
Common units repurchased on open market (in units) | 890,218 | 890,218 | |||
Cost, inclusive of transaction costs, of repurchase of outstanding common units | $ 1,000,000 | $ 1,000,000 | |||
Average price per common unit (in dollars per share) | $ 1.07 | $ 1.07 | |||
Amount remaining under Unit Repurchase Program | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | ||
CVR Services | CVR Partners | |||||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Percentage of common units owned by wholly-owned subsidiary | 35.00% | ||||
CVR Services | CVR GP, LLC | |||||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Percentage of common units owned by general partner | 100.00% | ||||
Majority Shareholder | |||||
Organization, Consolidation, and Presentation of Financial Statements [Line Items] | |||||
Ownership percentage held by controlling stockholder | 71.00% |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reclassification out of inventory | $ (252) | $ (373) | |
Reclassification to other long-term assets | $ 375 | $ 295 | |
Reclassification Adjustment | Catalyst Inventory | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Reclassification out of inventory | $ 17 | ||
Reclassification to other long-term assets | $ 17 |
Inventories (Details)
Inventories (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | ||||
Finished goods | $ 100,000,000 | $ 177,000,000 | ||
Raw materials | 73,000,000 | 112,000,000 | ||
In-process inventories | 15,000,000 | 18,000,000 | ||
Parts, supplies and other | 64,000,000 | 66,000,000 | ||
Total inventories | 252,000,000 | 373,000,000 | ||
Inventory [Line Items] | ||||
Inventories, carrying amounts in excess of market value | 58,000,000 | $ 0 | ||
Petroleum | ||||
Inventory [Line Items] | ||||
Inventories, carrying amounts in excess of market value | $ 58,000,000 | $ 0 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant, and Equipment | ||
ROU finance leases | $ 55 | $ 57 |
Property, plant and equipment, gross | 4,210 | 4,163 |
Less: Accumulated depreciation | 1,916 | 1,827 |
Total property, plant and equipment, net | 2,294 | 2,336 |
Machinery and equipment | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 3,877 | 3,829 |
Buildings and improvements | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 88 | 87 |
Land and improvements | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 47 | 46 |
Furniture and fixtures | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 37 | 35 |
Construction in progress | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | 92 | 95 |
Other | ||
Property, Plant, and Equipment | ||
Property, plant and equipment, gross | $ 14 | $ 14 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)product | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |||||
Impairment of goodwill | $ 41 | $ 0 | $ 41 | $ 0 | |
Nitrogen Fertilizer | |||||
Goodwill [Line Items] | |||||
Goodwill | $ 41 | ||||
Number of primary products experiencing significant pricing declines | product | 2 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 1 year | |
Minimum | Subsequent Event | ||
Lessee, Lease, Description [Line Items] | ||
Financing lease not yet commenced, amount expected to be capitalized at commencement | $ 20 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Renewal term | 20 years | |
Maximum | Subsequent Event | ||
Lessee, Lease, Description [Line Items] | ||
Financing lease not yet commenced, amount expected to be capitalized at commencement | $ 25 |
Leases - Balance Sheet Summary
Leases - Balance Sheet Summary (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Operating Leases: | ||
Lease liability | $ 42 | |
Finance Leases: | ||
Lease liability | 63 | |
Pipeline and storage | ||
Operating Leases: | ||
ROU assets, net | 17 | $ 20 |
Lease liability | 19 | 22 |
Finance Leases: | ||
ROU assets, net | 28 | 29 |
Lease liability | 39 | 40 |
Railcars | ||
Operating Leases: | ||
ROU assets, net | 10 | 12 |
Lease liability | 10 | 12 |
Real estate and other | ||
Operating Leases: | ||
ROU assets, net | 15 | 16 |
Lease liability | 13 | 14 |
Finance Leases: | ||
ROU assets, net | 23 | 24 |
Lease liability | $ 24 | $ 25 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease expense | $ 5 | $ 4 | $ 9 | $ 8 |
Finance lease expense: | ||||
Amortization of ROU | 1 | 1 | 3 | 3 |
Interest expense on lease liability | 2 | 1 | 3 | 3 |
Short-term lease expense | $ 2 | $ 2 | $ 4 | $ 4 |
Leases - Lease Terms and Discou
Leases - Lease Terms and Discount Rates (Details) | Jun. 30, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term (years) | ||
Operating Leases | 3 years 3 months 18 days | 3 years 8 months 12 days |
Finance Leases | 8 years 6 months | 9 years |
Weighted-average discount rate | ||
Operating Leases | 5.60% | 5.60% |
Finance Leases | 8.90% | 8.90% |
Leases - Remaining Minimum Leas
Leases - Remaining Minimum Lease Payments (Details) $ in Millions | Jun. 30, 2020USD ($) |
Operating Leases | |
Remainder of 2020 | $ 8 |
2021 | 15 |
2022 | 11 |
2023 | 7 |
2024 | 4 |
Thereafter | 0 |
Total lease payments | 45 |
Less: imputed interest | (3) |
Total lease liability | 42 |
Financing Leases | |
Remainder of 2020 | 5 |
2021 | 11 |
2022 | 11 |
2023 | 10 |
2024 | 10 |
Thereafter | 43 |
Total lease payments | 90 |
Less: imputed interest | (27) |
Total lease liability | $ 63 |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Accrued taxes other than income taxes | $ 29 | $ 28 |
Accrued interest | 27 | 9 |
Personnel accruals | 22 | 47 |
Operating lease liabilities | 13 | 14 |
Accrued Renewable Fuel Standards (“RFS”) obligation | 12 | 7 |
Current portion of long-term debt and finance lease obligations | 7 | 5 |
Share-based compensation | 6 | 6 |
Deferred revenue | 3 | 28 |
Accrued income taxes | 1 | 24 |
Accrued derivatives | 0 | 7 |
Other accrued expenses and liabilities | 13 | 9 |
Total other current liabilities | $ 133 | $ 184 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 27, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Total long-term debt and finance lease obligations, net of current portion | $ 1,683 | $ 1,190 | |
Current portion of long-term debt and finance lease obligations | 7 | 5 | |
Total long-term debt and finance lease obligations, including current portion | 1,690 | 1,195 | |
CVR Energy | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | (6) | 0 | |
Total Long-Term Debt | 994 | 0 | |
CVR Energy | Senior Notes | 5.25% Senior Notes due February 2025 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 600 | 0 | |
Stated interest rate | 5.25% | 5.25% | |
CVR Energy | Senior Notes | 5.75% Senior Notes due February 2028 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 400 | 0 | |
Stated interest rate | 5.75% | 5.75% | |
CVR Partners | |||
Debt Instrument [Line Items] | |||
Unamortized discount and debt issuance costs | $ (13) | (15) | |
Total Long-Term Debt | 632 | 632 | |
CVR Partners | Senior Notes | 9.25% Senior Secured Notes due June 2023 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 645 | 645 | |
Stated interest rate | 9.25% | ||
CVR Partners | Senior Notes | 6.50% Senior Notes due April 2021, net of current portion | |||
Debt Instrument [Line Items] | |||
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 0 | 2 | |
Stated interest rate | 6.50% | ||
Outstanding balance classified as short-term | $ 2 | ||
CVR Refining | |||
Debt Instrument [Line Items] | |||
Finance lease obligations, net of current portion | 57 | 61 | |
Unamortized discount and debt issuance costs | 0 | (3) | |
Total long-term debt and finance lease obligations, net of current portion | 57 | 558 | |
Current portion of finance lease obligations | 5 | 5 | |
CVR Refining | Senior Notes | 6.50% Senior Notes due November 2022 | |||
Debt Instrument [Line Items] | |||
Total long-term debt, net of current portion, before finance lease obligations, debt issuance costs and discount | $ 0 | $ 500 | |
Stated interest rate | 6.50% | 6.50% | |
Redemption price percentage | 101.083% |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Additional Information (Details) - USD ($) | Jan. 27, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||||
Payment for redemption of debt | $ 500,000,000 | $ 0 | ||
Call premiums paid | $ 5,000,000 | $ 0 | ||
2022 Notes | Senior Notes | CVR Refining | ||||
Debt Instrument [Line Items] | ||||
Accrued interest settled upon redemption | $ 8,000,000 | |||
Payment for redemption of debt | $ 505,000,000 | |||
Redemption of notes, percentage of par value at which notes were repurchased | 101.083% | |||
Loss on extinguishment of debt | $ 8,000,000 | |||
Call premiums paid | 5,000,000 | |||
Write-off of unamortized deferred financing costs | $ 3,000,000 | |||
Stated interest rate | 6.50% | 6.50% | ||
2025 Notes | Senior Notes | CVR Energy | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of private offering | $ 600,000,000 | |||
Stated interest rate | 5.25% | 5.25% | ||
2028 Notes | Senior Notes | CVR Energy | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount of private offering | $ 400,000,000 | |||
Stated interest rate | 5.75% | 5.75% |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Credit Facilities Outstanding (Details) - Line of Credit - Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2020USD ($) | |
CVR Partners | Asset Based (AB) Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Capacity | $ 46,000,000 |
Amount Borrowed | 0 |
Outstanding Letters of Credit | 0 |
Available Capacity | $ 46,000,000 |
CVR Partners | Asset Based (AB) Credit Facility | LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.00% |
CVR Partners | Asset Based (AB) Credit Facility | Base Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.00% |
Variable rate step-down | 0.50% |
CVR Refining | Amended and Restated Asset Based (Amended and Restated ABL) Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Capacity | $ 400,000,000 |
Amount Borrowed | 0 |
Outstanding Letters of Credit | 7,000,000 |
Available Capacity | $ 393,000,000 |
CVR Refining | Amended and Restated Asset Based (Amended and Restated ABL) Credit Facility | LIBOR | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.50% |
CVR Refining | Amended and Restated Asset Based (Amended and Restated ABL) Credit Facility | Base Rate | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
Revenue - Revenue Disaggregated
Revenue - Revenue Disaggregated by Major Product (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 675 | $ 1,687 | $ 1,806 | $ 3,173 |
Revenue from product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 665 | 1,678 | 1,757 | 3,138 |
Gasoline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 300 | 816 | 816 | 1,490 |
Distillates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 246 | 689 | 720 | 1,344 |
Ammonia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 37 | 50 | 51 | 63 |
UAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 55 | 74 | 102 | 138 |
Other urea products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 4 | 5 | 7 | 10 |
Freight revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 11 | 13 | 24 | 26 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 12 | 31 | 37 | 67 |
Crude oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 10 | 6 | 48 | 29 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | 3 | 1 | 6 | |
Operating Segments | Petroleum | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 572 | 1,552 | 1,629 | 2,949 |
Operating Segments | Petroleum | Revenue from product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 562 | 1,545 | 1,580 | 2,918 |
Operating Segments | Petroleum | Gasoline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 300 | 816 | 816 | 1,490 |
Operating Segments | Petroleum | Distillates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 246 | 689 | 720 | 1,344 |
Operating Segments | Petroleum | Ammonia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Operating Segments | Petroleum | UAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Operating Segments | Petroleum | Other urea products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Operating Segments | Petroleum | Freight revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 4 | 6 | 9 | 11 |
Operating Segments | Petroleum | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 12 | 34 | 35 | 73 |
Operating Segments | Petroleum | Crude oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 10 | 6 | 48 | 29 |
Operating Segments | Petroleum | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | 1 | 1 | 2 | |
Operating Segments | Nitrogen Fertilizer | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 105 | 138 | 180 | 230 |
Operating Segments | Nitrogen Fertilizer | Revenue from product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 105 | 136 | 180 | 226 |
Operating Segments | Nitrogen Fertilizer | Gasoline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Operating Segments | Nitrogen Fertilizer | Distillates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Operating Segments | Nitrogen Fertilizer | Ammonia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 37 | 50 | 51 | 63 |
Operating Segments | Nitrogen Fertilizer | UAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 55 | 74 | 102 | 138 |
Operating Segments | Nitrogen Fertilizer | Other urea products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 4 | 5 | 7 | 10 |
Operating Segments | Nitrogen Fertilizer | Freight revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 7 | 7 | 15 | 15 |
Operating Segments | Nitrogen Fertilizer | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 2 | 0 | 5 | 0 |
Operating Segments | Nitrogen Fertilizer | Crude oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Operating Segments | Nitrogen Fertilizer | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | 2 | 0 | 4 | |
Other / Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | (2) | (3) | (3) | (6) |
Other / Eliminations | Revenue from product sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | (2) | (3) | (3) | (6) |
Other / Eliminations | Gasoline | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Other / Eliminations | Distillates | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Other / Eliminations | Ammonia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Other / Eliminations | UAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Other / Eliminations | Other urea products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Other / Eliminations | Freight revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | 0 | 0 | 0 | 0 |
Other / Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | (2) | (3) | (3) | (6) |
Other / Eliminations | Crude oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from product sales | $ 0 | 0 | 0 | 0 |
Other / Eliminations | Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Other revenue | $ 0 | $ 0 | $ 0 |
Revenue - Additional informatio
Revenue - Additional information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Petroleum | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 2 days |
Petroleum | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 32 days |
Nitrogen Fertilizer | Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 15 days |
Nitrogen Fertilizer | Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment terms | 30 days |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) - Nitrogen Fertilizer $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1 |
Remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4 |
Remaining performance obligation, expected timing of satisfaction, period |
Revenue - Deferred Revenue (Det
Revenue - Deferred Revenue (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at beginning of period | $ 28 |
Less: | |
Balance at end of period | 3 |
Prepaid contracts, payment collected | 17 |
Nitrogen Fertilizer | |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance at beginning of period | 28 |
Add: | |
New prepay contracts entered into during the period | 18 |
Less: | |
Revenue recognized that was included in the contract liability balance at the beginning of the period | 27 |
Revenue recognized related to contracts entered into during the period | 16 |
Balance at end of period | $ 3 |
Derivative Financial Instrume_3
Derivative Financial Instruments, Investments and Fair Value Measurements - Additional Information (Details) | Jun. 30, 2020derivative |
Commodity Swap Postions | |
Derivative [Line Items] | |
Outstanding positions | 0 |
Forward Contracts | Purchase Commitments | |
Derivative [Line Items] | |
Outstanding positions | 2,000,000 |
Forward Contracts | Sale Commitments | |
Derivative [Line Items] | |
Outstanding positions | 1,000,000 |
RINs | |
Derivative [Line Items] | |
Outstanding positions | 5,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments, Investments and Fair Value Measurements - Schedule of Gains on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain on derivatives, net | $ 20 | $ 4 | $ 65 | $ 20 |
Forward purchases and sales contracts, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain on derivatives, net | 15 | 3 | 51 | 20 |
Commodity swap instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain on derivatives, net | 4 | 0 | 4 | 0 |
Futures contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain on derivatives, net | $ 1 | $ 1 | $ 10 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments, Investments and Fair Value Measurements - Open Commodity Derivative Instruments (Details) - bbl bbl in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Canadian crude oil | ||
Derivative [Line Items] | ||
Number of barrels | 3 | 5 |
Derivative Financial Instrume_6
Derivative Financial Instruments, Investments and Fair Value Measurements - Schedule of Offsetting Assets and Liabilities (Details) - Commodity derivatives - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Derivative Assets | ||
Commodity derivatives | $ 6 | $ 3 |
Less: Counterparty netting | (1) | (3) |
Total net fair value of derivatives | 5 | 0 |
Current Liabilities | ||
Derivative Liabilities | ||
Commodity derivatives | (1) | (11) |
Less: Counterparty netting | 1 | 3 |
Total net fair value of derivatives | $ 0 | $ (8) |
Derivative Financial Instrume_7
Derivative Financial Instruments, Investments and Fair Value Measurements - Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Dividend income | $ 3 | $ 0 | $ 4 | $ 0 |
Unrealized gain | 18 | 0 | 48 | 0 |
Investment income from marketable securities | $ 21 | $ 0 | $ 52 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments, Investments and Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair value measurements | ||
Prepaid expenses and other current assets (investments) | $ 188 | |
Total Assets | 194 | |
Long-term debt and finance lease obligations (senior notes) | (1,534) | $ (1,180) |
Total Liabilities | (1,546) | (1,195) |
Commodity derivatives | ||
Fair value measurements | ||
Prepaid expenses and other current assets (commodity derivatives) | 6 | |
Other current liabilities (commodity derivatives) | (8) | |
RFS obligation | ||
Fair value measurements | ||
Other current liabilities (RFS obligation) | (12) | (7) |
Level 1 | ||
Fair value measurements | ||
Prepaid expenses and other current assets (investments) | 188 | |
Total Assets | 188 | |
Long-term debt and finance lease obligations (senior notes) | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 1 | Commodity derivatives | ||
Fair value measurements | ||
Prepaid expenses and other current assets (commodity derivatives) | 0 | |
Other current liabilities (commodity derivatives) | 0 | |
Level 1 | RFS obligation | ||
Fair value measurements | ||
Other current liabilities (RFS obligation) | 0 | 0 |
Level 2 | ||
Fair value measurements | ||
Prepaid expenses and other current assets (investments) | 0 | |
Total Assets | 6 | |
Long-term debt and finance lease obligations (senior notes) | (1,534) | (1,180) |
Total Liabilities | (1,546) | (1,195) |
Level 2 | Commodity derivatives | ||
Fair value measurements | ||
Prepaid expenses and other current assets (commodity derivatives) | 6 | |
Other current liabilities (commodity derivatives) | (8) | |
Level 2 | RFS obligation | ||
Fair value measurements | ||
Other current liabilities (RFS obligation) | (12) | (7) |
Level 3 | ||
Fair value measurements | ||
Prepaid expenses and other current assets (investments) | 0 | |
Total Assets | 0 | |
Long-term debt and finance lease obligations (senior notes) | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 3 | Commodity derivatives | ||
Fair value measurements | ||
Prepaid expenses and other current assets (commodity derivatives) | 0 | |
Other current liabilities (commodity derivatives) | 0 | |
Level 3 | RFS obligation | ||
Fair value measurements | ||
Other current liabilities (RFS obligation) | $ 0 | $ 0 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-Based Compensation | ||||
Total Share-Based Compensation Expense | $ 2 | $ 6 | $ 1 | $ 11 |
Incentive Unit Awards | ||||
Share-Based Compensation | ||||
Total Share-Based Compensation Expense | 2 | 4 | 1 | 7 |
CVR Refining | Phantom Units Award | ||||
Share-Based Compensation | ||||
Total Share-Based Compensation Expense | 0 | 1 | 0 | 2 |
CVR Partners | CVR Partners LTIP | Phantom Units Award | ||||
Share-Based Compensation | ||||
Total Share-Based Compensation Expense | $ 0 | $ 1 | $ 0 | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Crude Oil Supply Agreement (Details) - Crude Oil Supply Agreement | Aug. 31, 2012 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Loss Contingencies [Line Items] | |||||
Renewal term of agreement | 1 year | ||||
Notice of nonrenewal period prior to expiration | 180 days | ||||
Petroleum Segment | Contracted Volume | Supplier Concentration Risk | |||||
Loss Contingencies [Line Items] | |||||
Volume contracted throughout Vitol as percentage of total crude oil purchases | 38.00% | 40.00% | 28.00% | 40.00% |
Commitments and Contingencies_2
Commitments and Contingencies - RFS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Petroleum Segment | Environmental, Health, and Safety Matters | ||||
Loss Contingencies [Line Items] | ||||
Expense recognized for compliance with RFS | $ 16 | $ 21 | $ 35 | $ 33 |
Commitments and Contingencies_3
Commitments and Contingencies - Litigation (Details) | 1 Months Ended | ||
Apr. 30, 2020claimant | Jan. 31, 2020claimant | Apr. 06, 2020contract | |
WRC and Others | Small Refinery Exemption | |||
Loss Contingencies [Line Items] | |||
Number of refineries whose SREs were vacated under RFS program under the CAA | 3 | ||
WRC | Small Refinery Exemption | |||
Loss Contingencies [Line Items] | |||
Number of refineries whose SREs were vacated under RFS program under the CAA | 1 | ||
CVR Energy, CVR Refining and General Partner, CVR Refining Holdings, IEP and CEO | Call Option Lawsuits | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits filed | contract | 9 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segments - Summary of
Business Segments - Summary of Operating Results and Capital Expenditures by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 675 | $ 1,687 | $ 1,806 | $ 3,173 | |
Operating income (loss) | (26) | 192 | (160) | 352 | |
Interest expense, net | (31) | (26) | (67) | (52) | |
Investment income from marketable securities | 21 | 0 | 52 | 0 | |
Other (loss) income, net | (1) | 3 | 0 | 6 | |
(Loss) income before income tax expense | (37) | 169 | (175) | 306 | |
Depreciation and amortization | 74 | 78 | 138 | 145 | |
Capital expenditures | 26 | 22 | 73 | 46 | |
Total Assets | 3,928 | 3,928 | $ 3,905 | ||
Operating Segments | Petroleum | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 572 | 1,552 | 1,629 | 2,949 | |
Operating income (loss) | 5 | 163 | (122) | 319 | |
Depreciation and amortization | 50 | 52 | 99 | 101 | |
Capital expenditures | 22 | 17 | 63 | 38 | |
Total Assets | 2,872 | 2,872 | 3,187 | ||
Operating Segments | Nitrogen Fertilizer | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 105 | 138 | 180 | 230 | |
Operating income (loss) | (26) | 35 | (31) | 44 | |
Depreciation and amortization | 24 | 25 | 39 | 42 | |
Capital expenditures | 3 | 2 | 8 | 5 | |
Total Assets | 1,043 | 1,043 | 1,138 | ||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (2) | (3) | (3) | (6) | |
Operating income (loss) | (5) | (6) | (7) | (11) | |
Depreciation and amortization | 0 | 1 | 0 | 2 | |
Capital expenditures | 1 | $ 3 | 2 | $ 3 | |
Total Assets | $ 13 | $ 13 | $ (420) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental disclosures: | ||
Cash (received for income taxes, net of payments) paid for income taxes, net of refunds | $ (4) | $ 32 |
Cash paid for interest | 49 | 52 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 8 | 8 |
Operating cash flows from finance leases | 3 | 3 |
Financing cash flows from finance leases | 3 | 3 |
Non-cash investing activities: | ||
Change in capital expenditures included in accounts payable | $ (4) | $ (9) |
Related Party Transactions - Ex
Related Party Transactions - Expenses from Related Parties (Details) - USD ($) $ in Millions | May 26, 2020 | Mar. 09, 2020 | Nov. 11, 2019 | Aug. 12, 2019 | May 13, 2019 | Mar. 11, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||||||||
Cost of materials and other | $ 444 | $ 1,267 | $ 1,501 | $ 2,368 | |||||||
Dividends | $ 40 | $ 80 | $ 80 | $ 75 | $ 75 | $ 75 | 121 | 150 | $ 307 | ||
Enable | Joint Venture Transportation Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cost of materials and other | 3 | 3 | 6 | 5 | |||||||
IEP | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends | $ 28 | $ 57 | $ 57 | $ 53 | $ 53 | $ 53 | $ 28 | $ 53 | $ 85 | $ 106 | $ 217 |
Related Party Transactions - Ag
Related Party Transactions - Agency Arrangement With IEP (Details) - USD ($) $ in Millions | Feb. 04, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | |||
Investment in certain marketable securities | $ 140 | $ 0 | |
Agency Agreement with IEP | IEH | |||
Related Party Transaction [Line Items] | |||
Investment in certain marketable securities | $ 140 |
Related Party Transactions - Su
Related Party Transactions - Summary of Dividends Paid (Details) - USD ($) | May 26, 2020 | Mar. 09, 2020 | Nov. 11, 2019 | Aug. 12, 2019 | May 13, 2019 | Mar. 11, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||||||||
Dividends declared per share (in dollars per share) | $ 0 | ||||||||||
Dividend Per Share (in dollars per share) | $ 0.40 | $ 0.80 | $ 0.80 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.40 | $ 0.75 | $ 1.20 | $ 1.50 | $ 3.05 |
Dividends Paid | $ 40,000,000 | $ 80,000,000 | $ 80,000,000 | $ 75,000,000 | $ 75,000,000 | $ 75,000,000 | $ 121,000,000 | $ 150,000,000 | $ 307,000,000 | ||
CVR Partners | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Distributions declared | $ 0 | ||||||||||
Distribution Per Common Unit (in dollars per share) | $ 0.07 | $ 0.14 | $ 0.07 | $ 0.12 | $ 0.40 | ||||||
Distributions Paid | $ 7,930,000 | $ 15,860,000 | $ 7,929,000 | $ 13,594,000 | 0 | $ 45,313,000 | |||||
CVR Energy | CVR Partners | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Distributions Paid | 2,724,000 | 5,449,000 | 2,724,000 | 4,670,000 | 15,567,000 | ||||||
IEP | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends Paid | 28,000,000 | 57,000,000 | 57,000,000 | 53,000,000 | 53,000,000 | 53,000,000 | $ 28,000,000 | $ 53,000,000 | 85,000,000 | $ 106,000,000 | 217,000,000 |
Stockholders | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends Paid | $ 12,000,000 | $ 23,000,000 | 23,000,000 | 22,000,000 | 22,000,000 | 22,000,000 | $ 35,000,000 | 90,000,000 | |||
Public Unitholders | CVR Partners | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Distributions Paid | $ 5,205,000 | $ 10,411,000 | $ 5,205,000 | $ 8,924,000 | $ 29,745,000 |